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

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are distributed on basis of area of each COlIIponent in relation to the overall facility, and the amcert hall being greater in size has larger costs. He said he would defer to the Auditorium Association the question of reducing the size, although he would not recommend any reduction - phasing to the total seating capaci ty projected would be better. .c ~ - ~- ~"-' r ' Mrs. Beal asked whether interest costs would be reduced enough to make less of an economic loss if the facility is built in segments, 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 would 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~rial/commercial and communi ty 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 Hr. Jarvis replied 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 facili ty will flow at different times of the day - but some analysis will have to be made. Mr. Mohr conmented that parking needs associated wi th the ' facility will have to be counted as a burden in addition 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 public 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 Fest! val; 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 C'Ollpare actual experience with the projected demand. Counilman Teague questioned the feasibility of including a depreciation figure in the financing program because of the public nature of the investment. Manager explained the Citl}'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 o€ replace- ment of equipment and furnishings within the building would probabll} be included in the operating cost. It appears the total annual burden, including the estimated operating loss plus' debt service, would be about $1,120,000.00. I ; I I I I I . ! i I i I I I I i I Mr. Teague asked if the facilitl} can be built in phases and how accurate are the revenue sources listed in the report. Hr. Amundson said it is believed monel} would be available from EDA if an application is filed relativell} 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 bl/ local residents and meeting IOOlIIS could carry industry names in return for donations - both types of pledge would come not only fmll Eugene but from the entire operation area outside the Citl/. As to phasing of construc- tion, he said costs included in the report will provide a functional operation when . colI!Pleted, but a reduced facility would increase the operating def.icit and lessen the overall desirabili tl/ of the complex. . There was some further discussion with regard to .impact: of planned JIlOtel facilities in the Eugene area on the convention hal.l,and the creation of positions for the repertory theatre. I I : I i i ! '. I I I The Manager asked if building a portion at a time would result :tnsoms inh:tb:ttion of the first phase to work as a unit because of the coarpliment4l'!/ nature of the total facilitl/. Can anl/ 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 project:ton. . Mr. Jarvis sdd estilMtes of use and financial implications' . would have to be reviewed; the minimum buic faciJ.itl/ would be a concert hall and meeting rooms. Manager sug- gested if it :ts decided the entire issue could not be sUbm:i.tted to the people, some idea as to how .much ClOu~d be subm:Ltted shou2d be referred back \ to the ClOJWultants Eoz Eurtb4r M4l.lIl;is. ~~ 2/l4.l72 - lQ