02/14/1972 Meeting (2) - Laserfiche WebLink

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- Council Chamber Eugene, Oregon February 14, 1972 Regular meeting of the Common Council of the city of Eugene, Oregon was called to order by His Honor Mayor Lester E. Anderson at 7:30 p.m. on February 14, 1972 in the Council Chamber with the following councilmen present: Mr. Mohr, Mrs. Beal, Messrs, Teague, McDonald, and Hershner, and Mrs.Campbell. Councilmen Gribskov and Williams were absent. Resignation, Gribskov - Mayor Anderson read a letter from Ivan Gribskov, councilman from Ward III, announcing his resignation from the Council effective immediately. Mr. Mohr moved seconded by Mrs. Beal to accept the resignation with regret. Mayor Anderson expressed appreciation for Mr. Gribskov's faithful and loyal work as a councilman, saying his services will be missed. A vote was taken on the motion, and motion carried, all cOl.U1ci1menpresent voting aye. Councilman Mohr said that in accordance with Council bylaws the Manager should be requested to estab- lish a time for an executive session of the COl.U1cil for discussion of procedure to be followed in selecting a new Council member. It was agreed an executive session would be held at 11:00 a.m. on Wednesday, February 16, 1972, in the Mayor's conference room. Further dis cussion established the office is open to any registered voter living in Ward III. . I - Public Hearings A. 10th and Oak Overpark Deficit Assessment COl.U1cil Bill No. 9561 - Declaring Deficit Assessment for 10th and Oak Overpark, declaring emergency, and setting public hearing for February 14, 1972, submitted and read the first time by cOl.U1cil bill number and title only on January 10, 1972, held over to this date to allow proper notice of assessment to be given owners of affected properties, .and brought back for consideration at this time. e Manager explained that a portion of the deficit assessment include in C.B.956l was the result of COl.U1cil decision at the time of original assessment that the Fred Fisk prop- erty qualified for exemption. That assessment (some $86,000.00) was removed from the original assessment with the intent of including it in the deficit assessment when a corrected ordinance was presented. Subsequent litigation indicated that the process of cancelling that assessment was improper. Because notification of the deficit assessment to property owners did not clearly state that that portion is a reassessment rather than a deficit, the City Attorney recommended no action be taken at this time on the ordinance before the Council, but that the ordinance be corrected and carried over two weeks to allow further rearing before final action is taken. Manager also explained that the original assessment was based on an estimated cost for the parking structure rather than awaiting completion of the project, since it was felt. best to have the assessment procedure clarified and proven before buying the land and constructing. Subsequent litigation causing delay of the project adding to construction costs, and additional costs because of negotiated settlements with the contractor, plus the reassessment of the Fisk property. resulted in the total deficit assessment of $555,508.78 covered by this ordinance. The first portion of the ordinance was read to ensure clear understanding of the COl.U1cil's part in the procedure, and for those people in attendatlce. Manager said the portion of the parking structure used for commercial' purposes was not assessed. that in order to finance that portion (grol.U1d floor area) the City segregated those costs and put that area up for bid on a lease basis. The bid was awarded to Nils Hult who advanced $250.000.00 in cash and later $100,000.00 to pay for that ground floor level. This resulted in a net assessed cost of $2,47.0,000.00. He further explained that this information went to the owners of properties assessed to- gether with a projection of net income which the facility is earning. The ordinance . creating the district provided that net income, after operating costs and bond principal and interest payments as they become due have been paid, will be credited against the assessment billings sent to property owners. Net income projected to 1991-92 is esti- mated to be sufficient to relieve principal payments of owners of benefitted properties. . I I I I I Letters of protest were read received from Bennett-Knox properties, Rubensteins. and Eugene Medical Center. The Bennett-Knox protest was that the use of their property has changed since the district was formed, the entire property is now used for parking. Manager said that under the original ordinance, the sale tif bonds created a lien against the property and there is no way to relieve 'the assessment if the use is changed. Whe- ther this correction of the original assessment would PI' would not apply to this protest nee~ research. The Eugene Medical Center obje'cted to the method of proposed assessment. They feel the entire City should bear the deficit assessment. Manager said methods of providing off.- street parking in the downtoWII area are being considered whereby C<;lsts would be borne by all of the downtown area properties. Any such program, if fair, will have to pro- vide some way of relieving the costs to property owners assessed for the 10th and Oak st%'Ucture. ....J ~0 2/14/72 - 1