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III. AX BILLY OPTION AGREEMENT (memo, agreement distributed) ~ Councilor Hansen said he would abstain from discussion and voting on this matter due to prior contacts. Mr. Gleason introduced Elaine Stewart, Department of Housing and Community Conservation. Ms. Stewart said that the council would be considering this item in its capacity as the Eugene Renewal Agency. She said that efforts to offer the Ardel Building, later known as the Ax Billy Department Store building, for sale and rehabilitation had commenced in March 1982. She said that of the four offers received, the Eugene Renewal Agency (ERA) had selected that of Bennett Management Company. Ms. Stewart said that Mr. Bennett proposed development of the building as an athletic club. She said that, in exchange for the option agreement, Mr. Bennett would make a deposit of $10,000 to demonstrate his good faith intent to exercise his option by giving the Renewal Agency written notice of his intentions by March 1, 1983. She said that Mr. Bennett had agreed on a purchase price of $213,000, with terms to be negotiated prior to execution of the purchase agreement. Ms. Stewart noted that during the period of time covered by the option agreement, Mr. Bennett would be undertaking a market study to provide information for use in refining his development proposal. She said that the Downtown Commission had recommended to the council that in the event that this market study indicates that the project is not economically feasible, the cost of the study, not to exceed $6,000, should be deducted from the $10,000 good faith deposit, since the information provided by the study would be of value to the City. Ms. Stewart said the commission felt that this risk-sharing was in the spirit of the publicI ~ private partnership. Ms. Stewart said that the Ax Billy Building was listed on the National Register of Historic Places and noted that Mr. Bennett had agreed to restore the exterior of the building in keeping with its recognized historical significance. Ms. Stewart said that she and Mr. Bennett were available to answer questions on the option agreement. Councilor Lindberg asked why the approval of the Department of Housing and Urban Development (HUD) was needed for the sale. Ms. Stewart responded that HUD approval was needed because HUD funds were used to purchase the building. Ms. Schue moved, seconded by Mr. Ob;e, that the City Council, acting in its capacity as the Eugene Renewal Agency, approve the option agreement between Bennett Management and the Eugene Renewal Agency for the purchase of the Ax Billy Department Store building. Roll call vote; motion carried unanimously, with Mr. Hansen abstaining. e IV. MONTHLY ECONOMIC DIVERSIFICATION STATUS REPORT re: DEVELOPMENT-RELATED PROCESS REVIEWS (memo, background information distributed) Mr. Gleason noted that this item had been held over from the December 15, 1982, council meeting. He said council endorsement was sought for general policy direction of deregulation of development-related processes. He introduced MINUTES--Eugene City Council January 12, 1983 Page 6