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Mr. Byrne said some discussion had occurred about whether the expansion area would compete with the downtown core. He said staff evaluation had concluded e that the core area by its nature would receive the most intensive development, with less intensive and more right-of-way-oriented development in the expansion area. Mr. Byrne said all development was a piece of implementing the Downtown Plan, and staff saw the expansion as spreading a tool to a broader part of the central Eugene area. Mr. Byrne said Councilor Holmer had asked about the use of tax increment funds for business development loans to the private sector. He said Mr. Holmer since had spoken with City Attorneys and had satisfied his concern about the issue. He asked whether other councilors wished to address the issue. None responded. Mr. Hibschman reviewed the criteria and process used to determine the proposed expansion area. He showed a map identifying downtown property development according to a ratio of improvements to assessed values. Mr. Hibschman said a 3:1 ratio was an indicator of ideal health, and the highest ratios in the expansion area were 2:1. He noted many low concentrations in the west, north, and northeast areas, and said that these low ratios had been used as an indicator of blight. Mr. Hibschman said consideration also had been given to several goals in the Downtown Plan, such as more intense development; improved access and entrances (e.g., 6th and 7th avenues); linkages with other assets (e. g. , 5th Avenue, train station); taking advantage of underused public facilities (e.g., EPAC garage); developing land adjacent to publicly owned sites; providing potential for housing development (particularly in the area to the west); and identifying land for future public projects that would stimulate development. e Mr. Hibschman said staff had contacted several property owners about plans for properties. He noted that one property owner who had submitted a letter for the record since had been granted approval for a change to commercial zoning. He reviewed the areas to be included in the recommendation from the Downtown Commission and the Planning Commission, which would use all of the 20 percent expansion allowance, except for about one-third block. Mr. Hibschman showed a summary of statistical information about individual parcels, with 23 or 24 buildings rated in poor condition and with improvements for the entire area valued at less than the land. He said the area definitely satisfied the requirement for blighted conditions. Mr. Miller asked about the parcel being considered for development by the State. Mr. Hibschman showed the area being considered under the current recommendation and said the block between 6th and 7th avenues and between Oak and Pearl streets had been included in the expansion in order to assist with development or expansion of a State Office Building, parking, or hote 1 expansion, as well as to assist with the development of parcels offered for sale by Lane County. He added that the IBM Building, a portion of 6th Avenue right-of-way, and the Banana Warehouse building had been proposed to be removed from the expansion area. Mr. Hibschman said information in the packet i ndi cated that Federal and State programs were available to he 1 p wi th deve 1 opment of the Banana Warehouse building. Councilors a s ked how the e MINUTES--Eugene City Council December 2, 1987 Page 8