CC Minutes - 11/27/06 Work Session

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goals for downtown, as well as capture momentum generated by recent development activities in and around the downtown area. Mr. Braud said that assembling the properties through purchase options could be the first step in an active redevelopment strategy for West Broadway. He illustrated the properties for which the URA had made offers in the form of purchase options. He said that signed agreements had been executed with seven owners representing 12 properties covering three full-block faces along Broadway. He noted that many of the properties and storefronts were vacant or underutilized; in some cases buildings were deteriorated and most of the retail space was poorly configured for today’s retail sales. He said that terms and option periods varied among properties, but a majority had an initial six-month period to execute purchase at the agreed upon price, followed by an available six-month extension period with payment of additional option money. He said the cost to obtain options on properties with a combined purchase price of $15.6 million was slightly over $54,000, with an additional $25,000 for consultant fees and expenses. Mr. Braud noted that some of the purchases prices appeared high for the area and pointed out that a number of the properties were not actively for sale at the time negotiations started; assembling property could be significantly more expensive than buying an individual parcel. He said that property assembly was a typical urban renewal strategy for cities and urban renewal agencies; earlier property assembly-based projects included the Library, the Hult Center, the Hilton Convention Center, the U.S. Bank building, Broadway Place and the federal courthouse. He said cities also typically provided tools and incentives for downtown redevelopment, including sale of property below market value to improve the feasibility of development proposals. Mr. Hacker remarked that work on the new City Hall complex master planning project had familiarized his firm with Eugene’s downtown. He said that redevelopment of the West Broadway area was absolutely essential to the future of a healthy downtown. He said the City created the groundwork to transform that area and bring a density and activity to downtown that would be very advantageous. He believed the City had an opportunity to build on the success of downtown planning and development activities and create the West Broadway district as a mixed-use, multi-story, high-quality downtown destination point. He used computer images to provide a sense of the uses and sizes of possible development to enliven the street and achieve vitality through commercial, cultural and living activities. Mr. Hacker emphasized that the redevelopment of West Broadway was not simply a design issue; the economics of that redevelopment would ultimately determine how the area got built. He believed that a comprehensive redevelopment approach could elevate the economics of downtown Eugene much more quickly and redevelopment along Broadway would attract other developers to the area. He listed three points that were critical to the success of Broadway redevelopment: ? Create an opportunity for a comprehensive redevelopment, have the vision and commitment to see the whole project through; ? Visualize the development potential and imagine the type of future desired for the area; ? Move forward with the Request for Qualifications (RFQ) and identify a private sector development partner to implement the strategy. Mr. Braud reviewed possible next steps, including issuing an RFQ, purchasing some or all of the properties and then offering them for redevelopment either individually or as a comprehensive package, or reopening discussions with Connor and Woolley/Opus regarding their original proposal. He said staff recommended issuing an RFQ based on the criteria included in the agenda packet. He remarked that the RFQ process MINUTES—Eugene City Council November 27, 2006 Page 3 Work Session