06/24/1987 Meeting - Laserfiche WebLink

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monthly parking permits in the downtown; therefore, tax increment must be used to service the debt on the parking structures. Mr. Bennett asked whether this e assumed that a certain amount of free parking existed in the downtown. Mr. Byrne said it did not. Mr. Byrne said the Central Area Transportation Study (CATS) proposes that parking garages be built to serve the areas where agency-owned development sites exist. CATS' parking recommendations were based on employment projections for downtown Eugene. He said the updated Urban Renewal Plan based its parking recommendations on floor area ratio projections (projections about the intensity of future downtown deve 1 opment) . He said these two studies independently arrived at similar conclusions about future downtown parking needs. Mr. Byrne used three flipcharts to illustrate in a simplified fashion the basic aspects of the way the Renewal Agency's financing works. Part of the first'flipchart read as follows: Agency Resources: --Beginning Working Capital $ 3.0 million --Tax Increment Flow 2.0 million $ 5.0 mi 11 ion Agency's Fixed Expenditures: --Existing Debt Service $ 1.4 million --Agency Operations .5 mi 11 ion $ 1. 9 mill ion e Funds Available for Projects: $ 3.1 mi 11 ion (resources minus fixed expenses) Mr. Byrne said one possible option for the Renewal Agency would be to do essenti ally nothi ng--that is, to make no major expendi tures on capita 1 improvements and to spend no resources in support of development. Under thi s scenario, the agency's ending working capital would be about the same as its initial working capital: Funds Spent on Capital Projects: $ .1 mi 11 ion Ending Working Capital: $ 3.0 million Ms. Wooten said she was stunned to see that a $.5 million expenditure on agency operations resulted in only $.1 million in capital improvements. Ms. Stewart emphasized that this scenario represented a lido nothing" approach-- that is, making no major capital improvements and spending no resources to stimulate a development. She added that if this approach actually were followed, administrative costs would be less than they are now. Mr. Gleason added that wi thout the agency s ta ff , developments such as those at the Schaefer Building, the McDonald Theater Building, and the Downtown Athletic Club, along with about five other projects currently under way, would not have occurred. e MINUTES--Eugene City Council June 24, 1987 Page 13