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operation of the conference center, and it was hoped, for improved operation of the hote 1 . Mr. Hibshman added that the reason for renegotiating the e agreement had been economic. He said staff had found that the working capital in the conference center fund was declining and had made adjustments to rental charges. Mr. Hibschman reviewed key points of the agreement. He said the term of the agreement would remain the same, at 55 years with renewable options. The main change in the base rent structure, he said, was that the $100,000 base rent would be indexed with the Consumer Price Index in Portland. The City a 1 so would continue to receive payments based on room sales and woul d begi n receiving payments from food and beverage sales at the hotel, he noted. Mr. Hibschman said the new agreement was expected to result in about 50 percent more rental revenue than the current agreement. He said the review periods in the new agreement would occur more frequently, at 25 years. He also said the City had agreed to improve the conference center by replacing worn carpets and installing extra equipment, for a cost of about $86,000. The hotel developers had indicated willingness to do a complete refurbishing of rooms, corridors, lighting, lobbies and upstairs areas, and both restaurants, for estimated costs of about $1 million, he added. Mr. Hibschman said the responsibility for the parking validation system had been shifted from the City to the hotel, and other minor changes also had been made. Mr. Holmer asked whether the memorandum of understanding that had been di stri buted wi th councilors' agendas was a document to be signed. Mr. Hibschman said the memo was a working agreement to be used in developing the final agreement that would be signed. Mr. Holmer asked whether the agreement dated June 30, 1980, in the memo of understanding was the same one as that e dated June 25, 1980, in the motion. Mr. Hibschman said June 30 was an error, and the reference was to the agreement of June 25. Mr. Hibschman added that the agreement contained two options, granted at the developer's request, either to purchase or to net lease the facility in the future. He said specific terms were contained in the memo of understanding. Mr. Holmer recessed the meeting of the Eugene City Council and convened a meeting of the Eugene Renewal Agency. Ms. Schue moved, seconded by Ms. Bascom, to amend the June 25, 1980, agreement and provide for other documents considered necessary and appropriate to consummate an agreement with the new owners. Roll call vote; the motion carried 6:0. Mr. Holmer adjourned the meeting of the Eugene Urban Renewal Agency and reconvened the meeting of the Eugene City Council. IV. EUGENE CONFERENCE CENTER/HILTON HOTEL AGREEMENT AMENDMENT City Manager Micheal Gleason introduced the item. e MINUTES--Eugene City Council October 21, 1987 Page 11