CC Minutes - 12/08/10 Work Session

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MINUTES Eugene City Council McNutt Room — Eugene City Hall 777 Pearl Street — Eugene, Oregon December 8, 2010 Noon COUNCILORS PRESENT: Mike Clark, Betty Taylor, Jennifer Solomon, George Poling, Andrea Ortiz, Chris Pryor, Alan Zelenka, George Brown, members. Her Honor Mayor Kitty Piercy called the December 8, 2010, work session of the Eugene City Council to order. A. WORK SESSION: Disposition of 858 Pearl Street Property Central Services Department Director Kristi Hammitt and Senior Management Analyst Denny Braud were present to discuss the disposition of City-owned property at 858 Pearl Street. Mike Penwell of the City's Facilities Division was also present for the item. Mr. Braud reminded the council that it had declared the property at 858 Pearl Street as surplus property in 2009. Subsequently, the City solicited offers for the property and received two offers, one from Network Charter School and one from Master Development. Mr. Braud reviewed the details of a proposal to sell the property to Master Development, and reported that the company's preferred concept was to redevelop the building as housing, with 15 units of housing and some commercial office space. He emphasized the use of the phrase "preferred concept," as the firm's intent was for housing but it might have to consider an office use if the housing concept was not feasible. Mr. Braud referred the council to Attachment A of the meeting packet, Outline of Terms Disposition of 858 Pearl Street Master Development, and reviewed the proposed terms. Mr. Braud recommended approval of the sale terms. Mayor Piercy determined from Mr. Braud that staff found Master Development's proposal to be acceptable because the firm proposed to use the building for housing, but the City was also willing to provide the firm with some flexibility in recognition of existing market conditions. Mr. Braud acknowl- edged the building could end up in office use depending on the results of the firm's feasibility study, but suggested a nice office building would not be a bad outcome of the sale. Mayor Piercy agreed. She observed the City had difficulty realizing its goal for downtown housing but she knew the council continued to support that goal. She hoped the firm's plans worked out. The proposal made sense to her. Mayor Piercy solicited council comments and questions. Ms. Solomon supported the proposal and hoped the City continued to dispose of its surplus properties. Ms. Ortiz also supported the proposal. She determined from Mr. Braud that if the building was not redeveloped as housing, it would not be eligible for the Multi -Use Property Tax Exemption (MUPTE). She further determined from Mr. Braud that while the City had only two offers for the property, one from MINUTES — Eugene City Council December 8, 2010 Page 1 Work Session