Item A: Review of Draft Request for Proposals for 10th and Charnelton Development Site

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EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY th Work Session: Review of Draft Request for Proposals for 10 and Charnelton Development Site Meeting Date: May 24, 2006 Agenda Item Number: A Department: Planning and Development Staff Contact: Denny Braud www.eugene-or.gov Contact Telephone Number: 682-5536 ISSUE STATEMENT On April 12, 2006, the City Council directed staff to bring back a draft Request for Proposals (RFP) for th the sale and development of the 10 and Charnelton (Sears) development site, following input from the Planning Commission. The draft RFP being considered for the site is included in Attachment A. BACKGROUND th The 10 and Charnelton development site includes the 1/4-block former Sears building property, along th with the 1/8-block surface parking lot on the northwest corner of 10 and Olive. (The other half of the th surface parking on 10 and Olive is owned by an adjacent private party.) The Urban Renewal Agency (URA) purchased the Sears property in 1993. The acquisition cost of approximately $900,000 (approx. $12/sq.ft.) included the Sears building property and the half-block on which the new library was constructed. The URA contributed the half-block to the library project in 2004, which represented a land contribution in excess of $1 million at that time. th A new appraisal of the 10 and Charnelton development site, completed on May 10, 2006, indicated a market vale of $970,000 ($25/sq.ft.). In 2005, the former Sears building structure was demolished for a total cost of approximately $202,000. th The first RFP for sale and development of the 10 and Charnelton site was issued in 1999, and included planning and design criteria that was approved by the Planning Commission and City Council (see Attachment B). Responses to this RFP were limited, and the URA deferred review of the responses given pending discussion regarding sites for the Federal Courthouse and new City Hall options. In December 2002, a second abbreviated RFP was issued (see Attachment C). In May 2003, the URA reviewed four responses to the RFP and selected the Oregon Research Insitute (ORI) project. Following ORI’s decision to not pursue the purchase and development of the site, there have been inquiries from parties interested in the site. On April 24, 2006, the Planning Commission reviewed the 1999 and 2002 versions of the RFP, and provided input regarding the issuance of a new RFP for the site. Generally, it encouraged use of the policies and strategies in the Downtown Plan as the primary source for gauging desirable projects for the site. It also favored a less-prescriptive RFP approach (in comparison to the 1999 criteria) in order to attract a broad mix of possible uses, encourage creativity in the development of the site, and inspire investor confidence. Although the Planning Commission favored a less prescriptive approach, it L:\CMO\2006 Council Agendas\M060524\S060524A.doc