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Councilor Bettman, seconded by Councilor Papd, moved to extend the time long enough to complete the present agenda item. Roll call vote; the motion passed unanimously, 7:0. David G. Hinkley, 1350 Lawrence Street, Apartment 1, objected to the Mayor Torrey's earlier comment that EWEB paid no property taxes. He pointed out that EWEB paid a six-percent contribution in lieu of tax (CILT) to the City. He felt that, should the City feel this was insignificant, he would prefer as a ratepayer not to pay it. He opined that spending money on design work prior to the certificate of need process was "putting the cart before the horse." He recommended the City wait until there was a proposal on the table. He said there was no guarantee at this point that there would be a hospital. He averred that the hospital should pay for such improvements and should not be subsidized by the City. He thought it contradictory that the City had money for this project but was seeking an increase in the gas tax to pay for road maintenance. Zachary ¥ishanoff, Patterson Street, felt that the council had time to discuss urban renewal with the public. He felt it was linked to "smart growth" like the gentrification of the City of Portland. He called the project "corporate welfare." City Manager Taylor clarified that the supplemental budget had simple transactions: $400,000 to demolish the Sears building, $245,000 for eligible projects in the urban renewal district, and a loan from McKenzie- Willamette Medical Center which would not be repaid if there was no project and would simply result in that entity funding the preliminary design and engineering work. Councilor Bettman, seconded by Councilor Nathanson, moved to approve Resolution 1033 adopting a Supplemental Budget; making appropriations for the Urban Renewal Agency of the City of Eugene for the Fiscal Year beginning Julyl, 2004 and ending June 30, 2005. Councilor Kelly underscored that the proposed agreement was that the initial design work would not use taxpayer dollars and only in the case that the hospital was then built at the site would the City have to repay the money from tax increment dollars from the hospital. In response to a question from Councilor Pap~, City Manager Taylor affirmed that the money for the razing of the Sears building would only be used if there was a signed sales agreement and the City did not have such an agreement yet. In response to a question from Councilor Bettman, Ms. Murdoch said the $245,000 was for initiating capital projects in the downtown area. City Manager Taylor clarified that it provided authority for the Urban Renewal Advisory Council to move forward with projects within the district. Councilor Bettman requested a list of projects as they were known. Councilor Bettman stated, for the public record, that the hospital had to have a site prior to being able to obtain a certificate of need. Roll call vote; the motion passed unanimously, 7:0. MINUTES--Eugene City Council December 6, 2004 Page 14 Regular Session