06/16/1986 Meeting - Laserfiche WebLink

Home Browse Search

In response to Ms. Bascom's question, Mr. Luell said that the lots west of e The Bon Marche are owned by the Urban Renewal Agency and the City of Eugene, and are included in the surface lots. Ms. Ehrman asked about the City's lease of The Bon Marche and Sears lots. Mr. Obie replied that the fund leases the land from private owners. Then the City leases the land to the Downtown Development Commission. Ms. Ehrman asked what would happen if we didn't lease these lots and whether The Bon and Sears would provide the lots free anyway. Mr. Luel' said that they would probably be turned over to Diamond Parking to become pay lots. Mr. Byrne added that both The Bon and Sears lots will be removed from the system this coming year and the manage- ment could return to the businesses. The Downtown Commission recommended their return as a part of a policy decision to provide equitable treatment of all businesses. Mr. Hansen asked whether, once these lots go out of the system, the busi- nesses would be charged the same percentage of the tax as other businesses. Mr. Luell said that because they are now part of the free program they are exempt from the ad valorem tax. When the lots are returned to the busi- nesses, they will no longer be exempt, and the business will be liable for the ad valorem tax on that parking portion. The percentage of gross sales for each business is equal--currently $2.50 per $l,OOO--and proposed at $3.50 per $1,000; the ad valorem portion of the tax is frozen. Mr. Byrne reported that two surface lots have debt service at 12th and Oak, and southwest of The Bon Marche; the rest of the surface lots are owned outright by the City. e Mr. Luell reviewed the Replacement Reserve account of $95,000. This repre- sents replacement of 1,250 spaces at $8,500 each. This does not replace The Bon or the Sears spaces, because the City does not own them. The Replacement Reserve is a new item in the budget. Mr. Luell defined the industry standard for replacement of a parking space as $7,000 to $12,000 each. Mr. Obie disagreed, citing a $3,500 to $5,000 range. Mr. Byrne explained that a parking garage with elevators and rest rooms causes the cost to rise and that the $8,500 figure is based on experience. Mr. Hansen agreed that the $8,500 figure was reasonable. Mr. Obie asked if a long-range plan was attached to the reserve fund, and Mr. Byrne said yes, that if there were no reserve, the City has no negotiating strength when a major business wants to move into the downtown area. Mr. Obie asked who made the policy decision for a reserve fund, and Mr. Byrne said that the Downtown Commission made the decision. Mr. Obie agreed that the Replacement Reserve is a good policy, but that it is a fundamental decision that a fund be created to build new parking structures. Mr. Lue'l agreed that this is a new policy. Mr. Holmer asked why the ending working capital in the fund is down $15,000. Mr. Luell said that the decrease is because of the Replacement Reserve account. In response to Mr. Holmer's question about line 61512 (Building and Land Rental) on page 2, Mr. Luel' cited the lease of the Eugene Hotel lot, and Mr. Byrne added that as the Eugene Development Department budget goes up, the Parks and Recreation Department will go down because of the shift of program responsibilities. e MINUTES--City Council Work Session June 16, 1986 Page 2