12/14/1988 Meeting - Laserfiche WebLink

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-- e B. Questions from Councilors Mayor Obie commented that it must be recognized that the community is entering a new era in which public and private resources must be packaged and utilized to facilitate public development. He considered it important to educate the public regarding how the various components of the proposed project would fit together. Answering Mr. Holmer1s question, Mr. Farkas said the present library site is not within the existing tax increment district. Without a project stimulating new tax increment revenue, he could not name a source of money for an expansion. Mr. Sercombe added that the current urban renewal plan would have to be amended to allow for the expenditure on the library site. Mr. Gleason pointed out that the cost of the library shell is reduced by the fact that the project is larger and would be under one management for which the City would not be paying. Referring to Mr. Gleason's statement that the developer needs some indication of the City's agreement around the project concept or the City needs to separate itself from the development, Ms. Wooten asked for clarification of what the alternative to commitment would be. Mr. Gleason responded that considerable legal work is required before construction details can be finalized. Unless the City commits to being involved before the end of January, Pankow will not be able to close lease agreements with prospective tenants. e Mr. Holmer asked if tax increment resources could be used for expansion of the library at its present site. Mr. Farkas said the present library site is not within the existing urban renewal district. He added that without new development stimulating more tax increment revenue, the funds needed for expansion would not be available. Mr. Sercombe noted that the current urban renewal plan would have to be amended to allow for an expenditure on the library site. Mr. Gleason added that the cost of the library shell is reduced by it being part of a large project and he suggested comparing the proposed construction costs to those of the EWEB, Airport expansion, or University projects. Mr. Gleason also said the mixed use portion of the parking would save a significant amount and the grants possible for the parking portion are not available on the other sites. Mr. Rutan said the average citizen will want to know how much the project will cost the individual City resident. Mr. Farkas assured him that no General Fund resource would be tapped for construction, nor would other tax dollars outside those in the existing district be used for capital expenses. In fact, Mr. Farkas said this project represents a creative way of using tax increment revenues twice to help forward the project. Mr. Rutan asked about risks to the City if several million dollars are put out to a developer. Mr. Farkas said nothing would be spent until the developer signs a development agreement and there is a commitment on the office tower. Currently, the developer is spending approximately $40,000 e MINUTES--Eugene City Council December 14, 1988 Page 6