Item C: Ridgeline Acquisition Proposal from Arlie and Company

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ECC DR UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Ridgeline Acquisition Proposal from Arlie and Company Meeting Date: November 8, 2010 Agenda Item Number: C Department: Public Works Staff Contact: Neil Björklund www.eugene-or.gov Contact Telephone Number: 541-682-4909 ISSUE STATEMENT This item is to discuss a proposal from Arlie and Company to sell additional land to the City for a new park south of Lane Community College and to name the park after Suzanne R. Arlie. BACKGROUND In May 2008, the City purchased 200 acres from Arlie and Company to extend the Ridgeline Park system east from Mt. Baldy toward Lane Community College. This purchase was primarily funded via the 2006 Parks, Recreation and Open Space (PROS) Bond, with a portion funded via Parks Systems Development Charge (SDC) funds. A sale agreement signed on May 20, 2008, included provisions that: (1) the City shall complete a master plan for the property on or before July 1, 2010, (2) within 60 days of the City’s completion of a master plan for the area, Arlie and Company would donate $600,000 to the City or to a mutually agreed-upon 501(c)(3) tax-exempt entity, and (3) the funds could be used for any park-related purpose, with expenditures not related to the subject property being subject to approval by Arlie and Company. The City’s master plan for the site was completed on schedule and was adopted by Administrative Order on June 25, 2010. The 60-day period for Arlie to make its donation has passed, and Arlie was unable to make that donation due to the company entering Chapter 11 bankruptcy proceedings. Arlie and Company contacted the Parks and Open Space Division in April 2010 indicating an interest in selling additional land to the city adjacent to the land acquired in 2008. At a June 14, 2010, City Council work session, the City Manager was asked to bring back information relating to the proposed acquisition and options for funding the acquisition On June 28, 2010, the Parks and Open Space Division signed a non-binding letter of intent with Arlie and Company indicating interest in acquiring additional land south of Lane Community College, contiguous with the land acquired from Arlie in 2008. The letter of intent was needed prior to July 31, 2010, in order to maintain the possibility of a sale and donation by ensuring the proposal would be considered as part of the Chapter 11 reorganization process. On October 8, 2010, Arlie staff informed Parks and Open Space staff that the bankruptcy court had approved the sale of land as described in the letter of intent. Z:\CMO\2010 Council Agendas\M101108\S101108C.doc