02/14/1972 Meeting - Laserfiche WebLink

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"..- 32 e r Ii II ,I 1 ~ I' Ii II I! Ii II I II il I, II 11 " 'I !: i! I' " ii Ii " Ii II Ii II :1 II 'I I, :1 I II 'i ,I 11 Ii " " ': I: I' II I' II 'I II Ii II 'I II " i: II Ii ii II II ,I Ii 11 Ii I: I: ,I I, II i' Ii !I Ii [i il I, ii Ii ji II Ii :1 'I jl " II !i 'I I: il " ii Ii It It ii II II [i II \l ~ are distributed on basis of area of each component in relation to the overall facility, and the concert hall being greater in size has larger costs. He said he would defer to the Auditorium Asso~iation the question of reducing the size, although he would not recommend any reduction - phasing to the total seating capacity projected would be better. Mrs. Beal asked whether interest .costs would be reduced enough to make less of an economic loss if the facility is built in ~egments, using a serial levy; and what effect such reduction would have upon that,portion of financing from sources other than the bonds. Mr. Jarvis answered that a phased porject spread over a period. of time would lower outstanding bonds and lessen cost, but also woiJJ.ld provide less facility. In preparing this particular schedule, he said, the issuance of bonds is spread over a three-year period. Financing in addition to the bond issue would come from indus:trial/commercial and community donations, the Renewal ,Agency, a grant from the Economic Development Administration - this project is on an L-COG priority list and up to 50% of the total cost may be applied for from EDA. Councilman Williams said the main interest of EDA is in creation of new jobs and that usually grants are allowed on the basis of $5,000.00 per job created. Councilman Hershner asked what would result if the bond issue does not receive a favorable vote, and Mr. J arvisreplied that if any of the finances are not forthcom- ing then the project would have to be revised to fit, what finances are available. Councilman Mohr questioned the absence of any reference in the report to the impact of parking requirements for the facility. Projected needs based on total attendance would call for 1600-1800 spaces within a block and a half area or the equivalent of eight square blocks of parking or three parking structures comparable to the Overpark. Mr. Jarvis said he does not believe it a problem which cannot be solved - parking related ,to the facility will flow at different times of the day - but some analysis will have to be made. Mr. Mohr commented that parking needs associated with the facili ty will have to be counted as a burden in addi tion to the costs listed in the report. John Amundson of Lutes and Amundson, architects on the project, said that although this particular project ,will generate additional parking spaces, overall parking needs in the downtown area are recognized, and it would appear to be a question of whether the entire parking problem will be resolved; could look at the possibility of additional private parking activities generated by the facility rather than added publi c burden. Councilman Williams asked clarification of the position that construction of the facility possibly could be the focus of new industry. Mr. Jarvis compared creation of the center to Salishan and the Shakespearean Festival; his people found in Eugene the element of demand for activities which would be carried on in a center of the type envisioned, these activities are now being carried on with almost total lack of facilities, so by supplying the facility the impact of,its operation will be realized. He said there has been no~occasion to compare actual experience with the projected demand. Counilman Teague questioned the feasibility of including a depreciation figure in the financing program becaus.e of the public nature of the inves.tment. Manager explained the City's accounting procedure would not ussually set aside, an account for deprecia- tion or add depreciation to the debt service, which includes principal and interest.. Projections of increased maintenance over the life of the building and cost 6f. replace- ment of equipment and furnishings wi thin the building would probably be incl uded in the operating cost. It appears tpe total annual burden, including the estimated ~perating loss plus debt service, would be about $1,120,000.00. Mr. Teague asked if the facility can be built in'phases and how accurate are the revenue sources listed in the report. Mr. Amundson said it is believed money would be available from EDA if an application is filed relati vely soon - that projected on the formula of $5,000.00 per new job created, a grant of $1,250,000.00 could be antici- pated. He said seats could.be pledged by local residents and meeting rooms could carry industry names in return for donations - both types of pledge would come not only from Eugene but from the entire operation area outside the City. As to phasing of construc- tion, he said costs included in the report will provide a functional operation when completed, but a reduced facility would increase the operating deficit and lessen the overall desirability of the complex. There was some further discussion with regard to impact of planned motel facilities in the Eugene,area on the convention hall and the creation of positions for the repertory theatre. The Manager asked if building a portion at a time would result in some inhibition of the first phase to work as a unit because of the complimentary nature of the total facility. Can any conclusions be drawn from the report as to revenues and expendi- tures for a phased program or would it be better to go back for a new projection. Mr. Jarvis said estimates of use and financial implications would have to be reviewed; the minimum basic facility would be a concert hall and meeting rooms. Manager sug- gested if it is decided the entire issue could not be submitted to the people, some idea as to how much could be submitted should be referred back to the consultants for further analysis. 2/14/72 - lQ ii !I I' ,I :j I e I I e I e