CC Minutes - 08/09/06 Workshop - Laserfiche WebLink

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potential sites owned by the City, other government agencies and by private single or multiple owners. He noted that sites could be added to the map. Status of Other Agency Sites and Existing City Hall Facility Project Manager Mike Penwell provided an update on the status and availability of properties owned by other governmental agencies: ? Existing federal building – General Services Administration (GSA) confirmed the building would be used for federal agencies for the next 10 to 15 years, although a small area would be available to rent, possibly to Municipal Court ? Butterfly parking lot – owned by Lane County and any transfer of ownership to the City would involve extensive negotiations; the County would entertain proposals, but the lot generated revenue and that would be a consideration Mayor Piercy pointed out that recommendations from the Park Blocks master planning effort were to return the lot to use as a park rather than a building site. Mr. Hacker said that those uses were not mutually exclusive and a civic building would a good companion to the Park Blocks. Mr. Penwell continued his review of properties: ? Former Lane County Elections site – possible compensation to County for market value or exchange of property ?th Lane County parking garage on 6 Avenue – heavily used garage with tunnel access to the Court- house and Public Service Building, would require significant compensation ? State Office Building – State is interested in surplusing the building ? EWEB site – recent decision by EWEB to move operations to west Eugene makes most of site available Mr. Penwell said there were three approaches to determining the value of the existing City Hall: 1) value in use – the value of the building as City Hall; 2) principle substitution – purchase by another organization; and 3) value exchange – analyzing the market value for rehabilitation and reuse. He said the third approach was the primary approach used to estimate market value and a quick analysis indicated the existing building might actually decrease the value of the land. He said other factors that affected income potential were the high costs associated with rehabilitating and operating the building, relatively limited leasable space and space that was low- to mid-quality. He said a more formal appraisal that included the full range of approaches to value would be done to confirm that the building value was low with little likelihood the market would rehabilitate it. He commented that the proposal from the Downtown Initiative for the Visual Arts (DIVA) to use the building for a visual arts center might be feasible it the building was donated or sold for $1. Mr. Papé asked if the City would continue to have any liability with respect to building defects if it was donated or sold. Mr. Penwell said that sale would transfer liability to the new owner. He added that there was a small amount of asbestos in the building and drilling beneath the building had not found any contaminants; the environmental risk of the building was low. MINUTES—Eugene City Council August 9, 2006 Page 3 Work Shop