05/12/1986 Meeting - Laserfiche WebLink

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- e e Responding to Mr. Holmer's question, Mr. Luell said the professional tax had been eliminated because it had been viewed as a disincentive for professionals to locate downtown. Responding to a question from Mr. Holmer, Mr. Gleason said the ratio was not the same as the 20 percent ratio because free spaces represented only one- third of the total spaces. He said spaces were subsidized at $18 and rented for an average of $25. Mr. Luell said actual costs averaged $25.71, and reve- nues generated were less than that. Mr. Luell reviewed the Downtown Commission recommendations, noting that a shift from a tax-supported program to a user-supported program, such as two free hours followed by a charge, could occur based on the amount of develop- ment. Lots at 11th Avenue and Willamette Street and 8th Avenue and Willamette were potential development sites, he said. Mr. Luell also said private con- tractors are being sought for services like custodial maintenance and security. Responding to questions from Mayor Obie, Mr. Luell said the expenditure for EDD under surface lots included rental of lots from The Bon Marche and Sears and adjacent to the Eugene Hotel, along with costs for personnel, equipment, and service contracts. Mr. Luell said the Parks Department was responsible for maintenance of the commercial space in garages, and Public Works did maintenance of surface lots. He said that Central Service Allocation included election, audit, and collections costs. Mayor Obie said that maintenance costs seemed high. Mr. Luell said the Parcade fund would include bidding for security and main- tenance. He also said utility and property tax costs for the commercial space were included under the Parcade expenditures. He said about $90,000 of the $177,000 under Parcade EDD expenditures was for commercial space management, and he added that it generated about $195,000 in revenue. Mr. Rutan said he thought users of commercial space in City buildings should bear some of the overhead costs for the building. Mayor Obie requested more detailed information on the line items. Ms. Bennett suggested that seeing the same figures as the Downtown Commission had seen might be helpful. She also said the commission had felt that some services could be provided more efficiently by the private sector. She said that after reviewing the numbers, the commission had felt comfortable with them but also had felt that private contracting should be explored for Parks and Public Works functions. Responding to Mr. Miller's question, Mr. Gleason said that developing sites and building garages never would result in a positive cash flow because of the tax increment structure. He said garages were required because of the density of the urban core, and the value of the tax increment then would be assessed to pay for the structures. Ms. Ehrman asked about the EDA contract, and Ms. Stewart said the contract included services like advertising, marketing, sales events, mall programming, and administrative staff. She added that additional marketing was done for the parking program. MINUTES--Eugene City Council Dinner/Work Session May 12, 1986 Page 3