Item 2A: Approval of City Council Minutes

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been assessed. Mr. Sullivan said Beam had conducted extensive investigations and was satisfied with the results. He said the City had provided the initial environmental studies to Beam and thought Beam would also pursue its own studies. Councilor Solomon asked how many square feet of occupancy had been committed to by the City. Mr. Sullivan replied that no specific commitment had been made but estimated that Beam would require between 30,000 and 50,000 square feet to be preleased before moving forward with the project. He said the new building to be constructed on the Aster development site and the existing Centre Court building would total about 120,000 square feet. Councilor Solomon asked if there would be a cap on costs and when the actual costs would be known. Mr. Sullivan said there would be a maximum cap on the City’s space commitment in the purchase agreement. He said Beam was still working on details of the pro forma that would be attached to the purchase agreement and that would include final lease rates. He expected the rate would be $1.83 per square foot or close to that amount. Councilor Solomon asked if there was a comparison of that rate to what the City was currently paying in total for the other space that would be vacated in order to move City functions into the Beam project. She asked if there were plans for the sale of other City properties such as 858 Pearl Street. Mr. Ruiz said staff would research the cost issue and provide the information to the council. He said the City was still committed to a private tenant as the first priority, but if the City did become a tenant the intent was to minimize the financial difference and evaluate financial opportunities related to other City properties. Councilor Solomon expressed concern about moving forward without a clear idea of the cost or adequate information to make a decision. She noted that detailed information on space costs had been provided by staff during discussion of the new City Hall project and should be readily available. She wondered what type of response there might be from local developers to a request for proposals if the City provided the incentive of being the anchor tenant. Councilor Bettman remarked that local developers had not responded when there was the implied benefit of an incentive. She was concerned that staff was moving forward with plans to vacate 858 Pearl Street and planning to sell it when the council had not provided that direction. She wanted a work session to discuss all aspects of vacating space, including the current cost of space in the Eugene Hotel building and 858 Pearl Street and plans to sell any City-owned property. She also asked how many square feet of space was rented by the Metro Partnership at the Chamber of Commerce office and the cost of that space. Councilor Clark agreed with the need for a discussion of the larger policy questions involved in addressing City office space needs. He noted that the City had issued a request for quotes, not a request for proposals, which was a substantive difference. He said the cost of project financing for a private developer was between six and seven percent, while the City’s bond rate was five percent. He questioned why the City did not develop the project. The meeting adjourned at 10:05 p.m. Respectfully submitted, MINUTES—Eugene City Council May 19, 2008 Page 12 Public Hearing