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e e' . expansion. To answer this concern, staff has created a new proposal (Option B) which includes the middle properties which were previously not included, and excludes the Oregon Electric Station property which is under a IS-year historic property tax exemption. Mr. Rutan asked if staff has heard from any property owners who wish to be included in the expansion but have not been. Mr. Hibschman said staff had not heard from anyone who was being excluded against their wishes, but has had communication from at least two property owners who are being included against their wishes. Mr. Green asked how businesses on the mall will benefit from the expansion. Mr. Hibschman said the benefit that will accrue to the existing renewal area will be realized in the long term. He said that with the expansion, the district will function better because the increment flow from projects in the expanded area could leverage projects in the downtown area. In addition, Mr. Hibschman felt the expansion will help accomplish the goals in the downtown plan by promoting more intensive development. Ms. Schue asked whether staff had discussed the exclusion of the Oregon Electric Station property with the business owner. Mr. Hibschman said staff had not discussed this with the Oregon Electric Station because staff did not think that there was much potential for development on the site given the historic nature of the building. Ms. Ehrman asked whether the restaurant's entire parking lot has been included in the expansion boundaries. She felt that this vacant area is a prime candidate for development and should be included. Other councilors agreed with this position. Mr. Hibschman said as much of the parking lot as possible has been included without exceeding the 20 percent limitation. Mr. Rutan voiced his support for the 20 percent expansion of the district, although he had one reservation. Mr. Rutan said the downtown mall is currently plagued with vacancies and underdevelopment; he felt expansion of the urban renewal district could contribute to this problem. Mr. Rutan did not feel this would occur, however. He said he hopes that over a period of time, healthy development in the expanded area will have a positive impact on the mall. Mr. Boles noted that urban renewal districts were created as a tool for dealing with urban blight and he did not feel that the proposed area for expansion meets the definition of blight. He added that the proposed expansion appears to be a quid pro quo of using tax increment funding to support parking garages in return for new construction. Mr. Boles said he is supportive of helping developers in the area solve parking problems, but feels there are options other than urban renewal districts for solving these problems. Finally, Mr. Boles voiced concern that the plan inside the existing urban renewal district has not been completed; he felt expansion of the district would divert needed funds from the downtown core. Mr. Hibschman reviewed urban renewal pro formas for the existing urban renewal district, the existing urban renewal area plus an expansion of one MINUTES--Eugene City Council May 24, 1989 Page 4