Item B: Surplus Property (2) - Laserfiche WebLink

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Based on the industry standard methodology for pricing land leases, the proposed property lease would be priced to provide a 6% annual return to the City. The annual lease payment would be calculated at 6% of the property value. A property value of $17.31/sq.ft. (the last purchase offer approved by council) would be used as the basis for the calculation and would yield an annual lease payment of approximately $50,000 for the lease of 49,000 square feet. The City would lease the property as-is, with Core Campus financially responsible for any improvements to the property. RELATED CITY POLICIES The proposed property transaction would help stimulate new multi-unit housing development, which addresses many goals for Eugene and downtown, including: Eugene Downtown Plan Stimulate multi-unit housing in the downtown core and on the edges of downtown for a  variety of income levels and ownership opportunities. Downtown development shall support the urban qualities of density, vitality, livability and  diversity to create a downtown, urban environment. Actively pursue public/private development opportunities to achieve the vision for an  active, vital, growing downtown. Use downtown development tools and incentives to encourage development that provides  character and density downtown. Facilitate dense development in the courthouse area and other sites between the core of  the downtown and the river. Envision Eugene Pillars Promote compact urban development and efficient transportation options.  Integrate new development and redevelopment in the downtown, in key transit o corridors and in core commercial areas. Meet the 20-year multi-family housing need within the existing Urban Growth o Boundary. Make compact urban development easier in the downtown, on key transit corridors, o and in core commercial areas. Protect, Repair and Enhance Neighborhood Livability.  Implement the Opportunity Siting (OS) goal to facilitate higher density residential o development on sites that are compatible with and have the support of nearby residents. Implement a toolbox of incentives that support the achievement of OS outcomes. Regional Prosperity Economic Development Plan Strategy 5: Identify as a Place to Thrive - Priority Next Step - Urban Vitality  As we foster a creative economy, dynamic urban centers are an important asset. Eugene, Springfield and many of the smaller communities in the region recognize the importance of supporting and enhancing vitality in their city centers. Building downtowns as places to live, work and play will support the retention and expansion of the existing business community and be a significant asset to attract new investment. The Cities of Eugene and S:\CMO\2013 Council Agendas\M130617\S130617B.doc