Item A: Recovery Zone Bonds and Downtown Site Development

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value. BMC will invest a minimum of $ 2.25 million equity in the project. Consistent with the terms of the current Beam agreement, BMC will need to be prepared to proceed with construction of the proposed project no later than May 1, 2011. For BMC to move forward with the proposed project, the following actions are required: City Council Actions 1.Approval of the outline of terms included in Attachment A. 2.Approval of the resolution included as Attachment B designating a Recovery Zone and authorizing the use of up to $8 million of Recovery Zone Facility Bonds for the project. Urban Renewal Agency Actions 1. Approval of the ownership transfer for the Vacant Parcel from Beam to BMC, along with the assignment of development rights related to the Vacant Parcel under Beam’s Purchase and Sale Agreement. Recovery Zone Facility Bonds The City received an allocation from the Federal government of Recovery Zone Facility Bonds of $11,083,000. The bonds may be used by private companies to access tax-exempt financing. The Recovery Zone Facility Bonds proposed for BMC’s bank loan of up to $8 million would leave $3.083 million of the City’s authorization unused. There are no other private projects identified to use the remaining City authorization. The City’s Recovery Zone bond allocation has a limited duration, and the State of Oregon has indicated that it will pursue using the City’s remaining allocation for another purpose if that allocation is not committed to local projects in September. Recovery Zone Economic Development Bonds The City received a Recovery Zone Economic Development Bonds allocation of $7,389,000 from the Federal government. These bonds may provide a lower interest rate on borrowing for certain projects by public entities, and must also be used by the end of calendar year 2010. The City does not have any projects that would benefit from the use of Recovery Zone Economic Development Bonds at this time. However, Lane Community College (LCC) has inquired about the City’s authorization as a possible source of financing for the student housing portion of the Downtown Campus project. The LCC Board is considering action to request the City’s $7,389,000 Recovery Zone Economic Development Bonds allocation at its September 8, 2010, meeting. In the event that the LCC Board approves the request, staff will present additional material and an amended resolution prior to the September 15 work session for council consideration along with this agenda item. Latitude is given to governments in designating the Recovery Zone boundaries. The City’s bond counsel recommends that for maximum flexibility in the use of these tools that the City designate the City limits as the boundary for the Recovery Zone. RELATED CITY POLICIES Development of the Vacant Parcel addresses many goals for Eugene and downtown, including activity in the core, employment, and sustainability. This project is supported by the Downtown Plan, Down- town Code Amendments, West Broadway Advisory Committee Recommendations, Central Area Transportation Study, Downtown Vision, City Council’s Downtown Collective Statements from August 2009, Downtown Policing Action Plan Team Short-Term Public Safety Strategy