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<br />e <br /> <br />e <br /> <br />e <br /> <br />M I NUT E S <br /> <br />Eugene City Council <br />Dinner/Work Session <br />McNutt Room, City Hall <br /> <br />January 11, 1989 <br />5:30 p.m. <br /> <br />COUNCILORS PRESENT: Ruth Bascom, Robert Bennett, Shawn Boles, Debra Ehrman, <br />Freeman Holmer, Roger Rutan, Emily Schue. <br /> <br />The adjourned meeting of January 11, 1989, was called to order by His Honor, <br />Mayor Jeff Miller. <br /> <br />I. LIBRARY MIXED-USE PROJECT <br /> <br />A. Cost Impact of Library Financing Plan <br /> <br />Tony Mounts, Finance Division, reviewed the cost to the City of the various <br />elements of the proposal to construct the Library in association with the <br />Pankow office building. He identified two assumptions underlying all areas <br />of the project as being: 1) constant dollars (all future revenue is <br />discounted to today's dollars using a seven percent discount rate), and 2) <br />interest rates (market interest rates are assumed to be today's rates for <br />both borrowing and investing). <br /> <br />1. Site Preparation <br /> <br />The first phase of the project is site preparation which involves utility <br />relocation and right-of-way improvements. Total cost is estimated at $2 <br />million. Sources of funds that have been identified are the Lane County Road <br />Fund ($1 million) and State of Oregon Lottery funds ($1 million). The State <br />funds are anticipated to be 50 percent loan and 50 percent grant. Terms of <br />the loan portion would be seven percent with a ten-year payment that would be <br />deferred for the first three years. The developer would pay three percent of <br />the interest plus 50 percent of the principal and the City would pay four <br />percent interest plus 50 percent principal. Cost in today's dollars would be <br />approximately $510,000. <br /> <br />Mr. Gleason added that the source of the County funds would be the Economic <br />Development Fund within the Road Fund. He anticipated both the State and <br />County funding requests would have a good chance of being approved and <br />pointed out that the project's job generation would be an asset. <br /> <br />Responding to Mayor Miller's question, Planning, Development, and Building <br />Department Director Abe Farkas said utility relocation would occur regardless <br />of what is included in the development. The rebuilding of Olive and <br />Willamette streets will be required to accommodate below-street parking. <br /> <br />MINUTES--Eugene City Council <br />Dinner/ Work Session <br /> <br />January 11, 1989 <br /> <br />Page 1 <br />