04/19/1989 Meeting - Laserfiche WebLink

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e e - Mr. Hibschman reviewed the proposed terms of land disposition and development. He said the council will be asked to review the Memorandum of Understanding for the project at its May 10 meeting. Staff is proposing a lease of the land with the option for the developer to purchase the land at any time at the appraised value at that time. Also under this proposal, annual payments for the land after the second year will be six percent of the value of the land. This rate will increase to ten percent after a ten-year period. Mr. Hibschman said a parking loan of up to $1 million from the Tax Allocation Fund is being considered. An interest rate of six percent would be charged on this loan, with a 30-year term and a 15-year call. Mr. Hibschman said staff has spent much time reviewing the forma and discussing the project needs with the developer. have been tailored to the unique character of the project. the project is financially feasible. development pro He said the terms Staff believes Answering a question from Ms. Ehrman, Mr. Hibschman said there has been discussion about making some parking spaces available to the public, but this option is not practical given the developerls desire to provide security for the parking so the housing portion of the project will be more marketable. Ms. Ehrman noted that the Downtown Development.District Review Group took this development and the consequent loss of public parking into consideration during its review of the parking situation in the downtown area. Ms. Bascom asked what alternatives will be available to those who currently park in the surface lot at 11th Avenue and Willamette Street. Mr. Hibschman said currently the surface lot is used quite intensively by people associated with Lane Community College (LCC) Downtown Center. Staff will notify LCe of the timing of the development and emphasize other parking opportunities such as the Overpark and other surface lots in the Olive Street area. In response to a question from Mr. Boles, Mr. Hibschman said there is a tax abatement over a ten-year period for the housing portion of this project. However, after the third year, the developer would be paying ten percent of the normal taxes into a low-income housing fund. Reference to this agreement will be included in the Memorandum of Understanding. Several councilors complimented the developers on the project, particularly for the integration of housing and for attending to the scale of the building. IV. WORK SESSION: HB 3414 ABOLISHING THE LANE COUNTY LOCAL GOVERNMENT BOUNDARY COMMISSION Pat Decker, Planning, Development, and Building staff, introduced the item. She said at the council meeting on April 10, Representative Larry Campbell requested that the council reconsider its position on HB 3413. Ms. Decker MINUTES--Eugene City Council Work Session and Meeting Apri 1 19, 1989 Page 7