05/23/1983 Meeting (2) - Laserfiche WebLink

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Mayor Keller asked councilors to declare any ex parte contacts or conflicts of interest. ~ Councilors Wooten and Lindberg stated that they had spoken to Mr. Bennett on the ATO house but did not feel this would prejudice their decision. Councilor Schue stated that she had received information from Mr. Bennett on the rouse but al so felt that her decision would not be prejudiced. e - Speaking in favor of the request for demolition: Robert Moulton, 260 East 11th Avenue, Eugene, an attorney for the owners of the property, reviewed the Hessels' history with the building. He stressed that the hazards associated with the property due to its use by vagrants and the lack of maintenance were causing the Hessels to become increasingly liable for the unsafe structure. Mr. Moulton stated that the Hessels had owned the building since 1964 until selling the property to Stephen Meyers in 1976; Mr. Meyers had in turn sold the property in 1978 to Gerald Dalros. Mr. Moulton explained that Mr. Dalros, due to financial difficulties, had been unable to make the payments on the property or to locate funding to renovate the building, thus the Hessels reassumed ownership in February 1982. Mr. Moulton stated that the owners have not received payments on their land sale for the past three years and the property has continued to be assessed for property taxes which are now estimated at $52,000. Mr. Moulton emphasized that the Hessels have had to pay approximately $70,000 to ~cover the property and should not be asked to suffer further. Donald A. Gallagher; 825 East Park Street, Eugene, an attorney representing the Hessels in regard to offers for the property, stated that he wished to speak on the two conditions contained in Mr. Bennett's offer. Mr. Gallagher stated that the conditions are: 1) the Hessels are to carry a portion of the purchase price back on a land sale contract or mortgage, and 2) the City is to make a loan of $125,000 to assist in the rehabilitation. Mr. Gallagher stated that the Hessels are requesting that the City's loan be subordinate to the interest being carried by the Hessels on the purchase price. Speaking in opposition to the request for demolition: Robert Bennett, 250 Palomino Drive, Eugene, addressed the issues of property taxes and supply and demand as editorialized by the Eugene Register-Guard. Mr. Bennett explained that the restored property would be more valuable to the city than a parking lot and that the additional office space should be looked at as a long-term program. He stated that while the project may not meet the council's criteria fur economic development, it is important to realize that no jobs are permanent in the constructi on busi ness. He stated that the goal of hi s cOOlpany is to look for development opportunities and that he planned to occupy office space in the renovated structure. Mr. Bennett stated that the building would add interest in the downtown area and would have a good business use. He said that his company's plan is good and that it has received community support. Scott Wylie, 310 East 14th Avenue, Eugene, stated that he is an architectural designer and contractor. Mr. Wylie commented that the ATO house doesn't fit into any style of architecture, therefore people might be uncertain of the success of the rehabilitation. He suggested that the ATO house be compared with the other II uglyll buil di ngs in the market pl ace to see exampl es of how restora ti on can be successful. Mr. Wylie displayed an architectural drawing of the ATO house by MINUTES--Eugene City Council May 23, 1983 Page 3