CC Minutes - 02/11/08 Work Session

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Ms. Taylor believed most of the purchase options should be dropped, particularly those on properties containing existing businesses. She asked if the owner of the Tango Center had expressed interest in the option for that building. Mr. Braud said yes. Ms. Taylor asked if the City was responding to that interest. Mr. Braud said staff was recommending that the City solicit interest from all parties, including the Tango Center. Ms. Taylor pointed out the center was currently using the property and she thought it would be good if it stayed in place. She did not support soliciting proposals that might displace current businesses. Ms. Taylor asked why the City was still talking to Scan Design. Mr. Braud said the URA directed staff to extend the option; however, that option had expired. Ms. Taylor was glad and hoped the City did what it could to keep the store downtown. Mayor Piercy understood that Scan Design planned to move to Oakway Mall. Mr. Braud said the store was looking at several different options. Mayor Piercy said she spoke to several people after they saw the architect’s renderings of the project, and they had reacted very positively. Ms. Bettman did not think the City should interfere with the free market unless there was a demonstrable public benefit or unless it could fix a problem. She asked where the public benefit existed in transferring the options. Mr. Braud suggested it was derived in the ultimate use of the properties; the concept was to assign the options to someone capable of carrying out a project and willing to make a reasonable offer for the assignment. Ms. Bettman asked if staff contemplated a Request for Proposals (RFP) approach when it mentioned disposing of the property in an “auction like” manner. She said the council had no analysis of what represented a reasonable return. Mr. Braud indicated there was no time for a formal RFP because several of the options would expire soon. City Manager pro tem Jones said staff recognized the investment the City made and hoped to recoup some of that, as well as not lose the benefit of having acquired the properties. She said the City would make the options available and evaluate offers based on their return to the City. Ms. Bettman asked what happened if the offers did not provide a return to the City; would the options be allowed to expire? City Manager pro tem Jones said yes. Ms. Bettman suggested the process could be constrained to produce more benefit, such as selling the properties to the tenants who occupied them now. Her concern was that if the City sold the options to the highest bidder without any constraints, a buyer could tear a building down and leave a pit in its place, or wait for the Eugene Redevelopment Advisory Committee to push for a code change that allowed for profitable surface parking. She could not support those scenarios, and anticipated she would amend the motion proposed by staff so the options were offered first to the tenants, and the purchase contracts did not allow for building demolition for surface parking. She asked City Attorney Glenn Klein for assistance in crafting a motion. Ms. Bettman asked how the Brownfields Economic Development Initiative (BEDI) grant would be used. Mr. Braud said staff would propose a financial plan in advance of a council work session. The City was interested in using the BEDI grant and Housing and Urban Development (HUD) 108 moneys, and the logical use was for acquisition of the properties and construction assistance. Mr. Poling recalled the council’s receipt of a letter from Bradford’s and said that Mr. Clark, who was not able to attend the meeting, was interested in holding the company harmless due to its longevity in downtown. MINUTES—Eugene City Council February 11, 2008 Page 4 Work Session