10/19/1988 Meeting - Laserfiche WebLink

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e businesses and high vacancy rates. Mr. Bennett asked staff to identify the locations of properties that have contributed to the other two-thirds of the decrease in assessed values. Mr. Farkas noted that property owners who contributed to the latest drop in assessed values probably petitioned to have their assessment values lowered. He added that assessed value is not the only, or necessarily the best, indicator of activity downtown. Mr. Hibschman showed a chart illustrating how assessed value yields tax increment revenue, using the proposed Pankow development at the corner of 8th Avenue and Willamette Street as an example. He said generally development is equated with increment development potential. The increment generated from the office portion of the proposed development could conceivably be used to finance a library in a portion of the building. Mr. Hibschman said the private component of the office building ($18 to $20 million) could yield a $6 million bond based on its increment flow. A free-standing library would not generate any increment flow. Mr. Gleason said the increment generated by the Pankow development would probably pay for the shell of the library. Development costs for the interior, and operation and maintenance costs would require additional funding. Mr. Holmer asked if there has been a legal study of the use of tax increment moneys to construct a library. Mr. Sercombe said the City Attorney's office has reviewed that issue and concluded that it was a permissible use of tax increment funds if the development is consistent with the urban renewal plan. e Mr. Gleason felt it would be beneficial to the downtown area to have the library at this site. He said the activity of the library has a potential to draw major retailers to the downtown area. Mr. Gleason also felt a cultural link between the library and the Hult Center could be created; this link might be beneficial in marketing the downtown area. Another benefit of bUilding the library in conjunction with this development is that construction costs would be lower because Pankow is principally a building company skilled in economical construction. Additionally, Pankow would develop parking and pay the operation and maintenance costs as well as taxes on it. Library patrons would be able to use the parking for free in the evenings and on weekends and would have easy access to the Parcade during regular hours. He said if the council is serious about building a library, doing it in conjunction with the Pankow development is a very good opportunity. Ms. Wooten asked how the public will be incorporated into this discussion. Ms. Schue was also concerned about this. She said the public knows there are vague plans for a new library, but have no idea that planning process is this advanced. Ms. Schue felt the public should have a chance to help in the planning of the project so they feel some ownership of it. Mr. Farkas said this is a difficult situation because the public process goes much slower than the private sector would like. He said staff has been e MINUTES--Eugene City Council October 19, 1988 Page 5