CC Minutes - 04/14/08 Work Session

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The motion passed unanimously, 7:0. B. WORK SESSION: Potential Hospital Citing Ms. Jones introduced Planning and Development Department director Susan Muir to present the item. Ms. Muir used a slide presentation to provide an overview of potential hospital siting in Eugene. She said the council had director staff to develop a work plan with timelines and cost impacts for the Riverfront Site and continue conversations on the 4J and Register Guard site. She used aerial photographs of the Riverfront site to illustrate the proposed development site. She reviewed McKenzie Willamette Medical Center and University of Oregon Riverfront site issues related to location, size, timing, process complexity, land and financing. She said the University’s requirements were addressed in detail in its April 7, 2008, letter included in the agenda packet. Ms. Muir said an initial steps in the project would be to identify 60 acres—the equivalent of 21 square blocks—in the vicinity of the University, identify the financial resources for that acquisition and determine how to align the University and McKenzie Willamette’s timelines. She said the council options included: 1) support continued negotiations with the University of Oregon and McKenzie Willamette to see if timeline and financial issues could be resolved, 2) support continued discussions related to the 4J site, and 3) support continued discussions related to the Register Guard site; those options were presented as potential motions and the city manager’s recommendations was to support options 2 and 3 as the two North Eugene sites appeared to be the only ones that appeared to meet the hospital’s siting criteria. Ms. Bettman asked how staff determined what financial resources would be required for the Riverfront site. Ms. Muir replied that the resources were based on what the University required and staff’s estimate of the replacement value of the property. Ms. Bettman asked if McKenzie Willamette was no longer interested in the Riverfront site. McKenzie Willamette CEO Maurine Cate indicated that the hospital found the location on the Franklin Boulevard corridor very interesting as a hospital site. Ms. Bettman said the University was negotiating to its best advantage and the City should do the same. She was in favor, as long as McKenzie Willamette was interested in the site, in continuing negotiations. She noted the hospital did not need all of the acreage and saw the site as being very advantageous to the community and still a compelling location. She listed a number of instances of the City’s generosity to the University over the years, in addition to cooperation on several ongoing projects and suggested those should be used as leverage in continued negotiations. Ms. Ortiz commented that it would be very challenging to identify an area the size of 21 square blocks within the City’s footprint. She said McKenzie Willamette did not need all of the Riverfront site and was willing to continue the negotiations. Mr. Zelenka indicated he liked the Riverfront site for a hospital and it would require creative thinking to address the University’s needs, although he was puzzled about why the University required the entire 67 acres. He said the Civic Stadium site could possible be considered in the negotiations and favored continuing to pursue the Riverfront site. MINUTES—Eugene City Council April 14, 2008 Page 3 Work Session