CC Minutes - 02/11/08 Work Session

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City Attorney Klein pointed out the properties would revert back to the property owners, not to the City, as the City held only the options. City Attorney Klein indicated his office would prepare text for the council to consider on February 13. Ms. Bettman said a council priority was having more people downtown, which meant housing. She asked if there was a way to create a weighted formula for awarding the purchase options that would favor housing. She said she would be willing to transfer the options at no cost if the result was a predominance of housing in a development. Mayor Piercy summarized the motion on the floor as amended through the discussion, saying the council had agreed to direct the agency director to come back with a proposal for the solicitation of offers. Ms. Bettman said another downside to the approach being proposed was that the City could be in the position that individuals already holding large blocks of property downtown could buy the options and further consolidate their holdings and then do nothing with their properties. She determined from Mr. Braud that the Connor-Wooley partnership had not contacted the City about the purchase options. She asked how the City could avoid the risk of further consolidation. City Manager pro tem Jones suggested there was nothing to preclude that from happening now because once the options expired, Connor-Wooley could readily purchase them from their owners. Ms. Bettman asked City Attorney Klein to return with a motion that stated the intent of the council was not to allow further consolidation of properties. City Attorney Klein said he would return with either the text requested or a legal opinion. Ms. Bettman determined that Mr. Pryor declined to accept an amendment related to consolidation of properties as a friendly amendment to the motion on the floor. Ms. Bettman moved that the assignment of the options be carried out in such a way as to avoid consolidation of properties to more than 25 percent of the footprint in a single owner- ship. The motion died for lack of a second. Ms. Bettman supported the motion on the floor in order to see what staff developed. However, that did not guarantee her future support. Mr. Zelenka asked if the City had the discretion to assign the purchase options. City Manager pro tem Jones said yes. She believed that at a minimum, the City could turn down an offer. Ms. Taylor was not willing to do anything to force the business owners to give up their businesses. She thought some of the prices for the properties the City held options on were outrageous and suggested the current tenants would not be able to afford to buy them at those prices. City Attorney Klein restated the motion: To direct the agency director to bring back to the URA as soon as possible a methodology for soliciting offers from parties interested in assignment of the purchase options not be- MINUTES—Eugene City Council February 11, 2008 Page 7 Work Session