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CITY OF EUGENE, OREGON
<br />Notes to Basic Financial Statements
<br />(4) Detailed Notes on All Funds, continued
<br /> (H) Noncurrent Liabilities, continued
<br /> Conduit Debt
<br />On December 27, 2010, the City issued $6,900,000 of Bank Loan Revenue Bonds, dated December 30, 2010,
<br />bearing a variable interest rate, and maturing on December 27, 2035. The bonds were issued to provide access to
<br />tax-exempt interest rates to Woolworth Properties, LLC for the construction of the Woolworth Building, which is
<br />located within the City’s Urban Renewal Downtown District. The City is not obligated in any manner for repayment of
<br />the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of
<br />June 30, 2015, $6,448,673 of the bonds were outstanding.
<br />Notes Payable
<br />The City has entered into contracts with the U.S. Department of Housing and Urban Development (HUD) as a
<br />guarantor for loan guarantees made under HUD’s Section 108 Loan Guarantee Program (Program). The Program is
<br />a source of financing for economic development.
<br />HUD contracts for loan guarantee assistance contain certain security provisions. The primary security is a pledge by
<br />the City of its current and future Community Development Block Grant funds. The City provides additional security for
<br />each Guaranteed Loan in the form of property liens.
<br />In July 2008, the City borrowed $2,706,000 from HUD to finance the purchase of the historic Washburne and Centre
<br />Court buildings in the Urban Renewal Downtown District. The note pays interest at a variable rate equal to the three-
<br />month LIBOR rate plus 0.2%. The rate adjusts on the first day of each month.
<br />On November 16, 2010, the City entered into a contract with HUD to borrow $5,189,000 to support the rehabilitation
<br />of the historic Washburne and Centre Court buildings in the Urban Renewal Downtown District. The note pays
<br />interest at a variable rate equal to the three-month LIBOR rate plus 0.2%. The rate adjusts on the first day of each
<br />month.
<br />LoanEnding
<br />Governmental activitiesamountInterest rates (%)balance
<br />Notes payable:
<br />Housing and Urban Development -
<br />$0.280% to 3.150%
<br />Washburne and Centre Court Building2,706,0001,069,000
<br />0.280% to 3.550%
<br />Washburne and Centre Court Building Rehabilitation5,189,0005,009,000
<br />7,895,0006,078,000
<br />$
<br />Annual debt service requirements to maturity for notes payable are as follows:
<br />Governmental activities
<br />Fiscal year
<br />ending June 30PrincipalInterest
<br />2016$210,000118,127
<br />2017191,000173,339
<br />2018193,000171,649
<br />2019204,000169,395
<br />2020204,000166,120
<br />2021-20251,020,000762,090
<br />2026-2030847,000621,482
<br />20313,209,00056,158
<br /> $6,078,0002,238,360
<br />continued
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