Item D: Downtown Development Update - ORI

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Downtown Development Update - Oregon Research Institute Meeting Date: February 13, 2006 Agenda Item Number: D Department: Planning and Development Staff Contact: Denny Braud www.eugene-or.gov Contact Telephone Number: 682-5536 ISSUE STATEMENT The council has requested that staff provide an update on pending downtown development projects. This work session will provide an update of the Oregon Research Institute’s (ORI) proposed purchase and redevelopment of the former Sears building site. BACKGROUND In December 2002, a Request for Proposals (RFP) was issued for the sale and development of the Urban Renewal Agency-owned Sears building site. In May 2003, the Urban Renewal Agency (URA) reviewed the responses to the RFP and selected the ORI project. In June 2004, the URA reviewed the terms of the sale and directed the City Manager to sell the property to ORI. A Purchase and Sale and Development Agreement was signed in February 2005 which specified a $400,000 purchase price, a June 2005 closing date, and July 2005 construction date. In July 2005, the agreement was amended to increase the purchase price to $470,000, extend the closing date to October 2005, and extend the construction date to January 2006. In December 2005, a second amendment to the agreement was signed, extending the closing date to January 30, 2005. The second amendment also required ORI to secure project financing by February 28, submit permits by March 15, sign a construction contract by April 7, close on project financing by May 12, and begin construction by May 15. ORI did not meet the January 30 closing date as specified in the agreement. ORI is a nonprofit research institute dedicated to studying human behavior and developing programs to improve the health and well being of individuals, families, and communities. ORI has operated in Eugene for 45 years, currently employs over 200 people, and has been frequently recognized as one of the “Best Companies to Work for in Oregon” by Oregon Business magazine. ORI has an operating budget of over $16 million and is currently receiving 60 research grants. They are primarily funded by the National Institutes of Health (NIH), but also receive funding from other Federal agencies, foundations, and private sources. ORI has three other satellite research offices in Oregon and one in New Mexico. Project Update ORI is proposing to construct an 80,000 square foot research building that will seek Platinum Level LEED Certification (the highest level of LEED certification). There are only 12 LEED Platinum buildings world-wide. ORI’s innovative solar-powered green building will provide office space for researchers and scientists, administrative offices, conference rooms, and an auditorium. Design development drawings for the building project are complete. To date, ORI has spent approximately $700,000 on the project. L:\CMO\2006 Council Agendas\M060213\S060213D.doc