07/19/1989 Meeting - Laserfiche WebLink

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------- e Answering a question from Ms. Ehrman, Ms. Bohman said lorig Associates proposes purchasing the building for $125,000, while the Friends propose ownership by a public corporation. Mr. Boles clarified that the Friends proposal requests conveyance of title. Ms. Bohman said the project for housing for head-injured individuals is compatible with both proposals and is awaiting final HUD approval. Mike Sullivan, Planning and Development Department, presented a comparison of the financing for the two proposals. Total debt was projected at $2,075,000 for the Lorig proposal and $2,426,885 for the Friends proposal. Mr. Sull i van reviewed projected operating expenses and income for the two proposals, and compared the rents required to carry costs of the projects. Answering councilors' questions, staff said the Friends' proposal assumes the receipt of operating grants to help reduce the per-square-foot rental rate to a marketable level. The proposals' estimations of operating expenses were accepted at face value to avoid discussion of the validity of assumptions at this time. Ms. Ehrman asked about maintenance of areas that would remain accessible to the public. Ms. Bohman responded that the Friends' proposal specifies that maintenance of the grounds is expected to be a City donation. She assumed that if the playground area remains in City ownership, lorig would expect it to receive City maintenance. e Mr. Rutan said that because the Friends' proposal appears to require City involvement, the council should clarify at the outset whether it intends to consider a proposal that does not meet the three criteria used in the RFP process. Mr. Boles commented that beyond conveyance of the building, the Friends' proposal does not require City involvement and he was unaware of any request for General Fund support. Mayor Miller reported that letters of support for the Friends' proposal have been received. He said supporters have expressed concern regarding the council making a decision without holding an additional public hearing. Saying that each proposal has serious flaws, Mr. Boles suggested that both be given an additional 30 days to remedy their deficiencies. He said many citizens believe that the westside area has been denied access to facilities commensurate with those available in other areas of the city and view the Friends' proposal as an opportunity to compensate for the loss of the Jefferson Pool facility. He anticipated neighborhood opposition to the zoning changes required for the Lorig project unless the Friends of Lincoln School is given the opportunity to strengthen its proposal. Answering a question from Mr. Bennett, lorig Associates representative Maris Hoffman said his company intends to apply for historic designation. The e MINUTES--Eugene City Council July 19, 1989 Page 4