05/23/1983 Meeting (2) - Laserfiche WebLink

Home Browse Search

e Councilor Holmer asked when the project would be completed. Ms. Decker said that it depended on Mr. Bennett's negotiations with the owners and with private financial institutions. She said Mr. Bennett was seeking the council's approval of the project so that he could obtain the required public and private loans. Mr. Gleason, referring to an earlier question by Councilor Ball, stated that the renovated structure would be assessed approximately $13,000 in property taxes based on a fair market value of $500,000. Councilor Holmer asked Mr. Moulton and Mr. Gallagher for their expectations of the project's completion. Mr. Gallagher stated that it was his understanding that the sale was dependent upon Mr. Bennett obtaining the loans. He said that the Hessels have until August 1 to accept the second offer on the property. Councilor Smith asked if the City and Mr. Bennett can comply with that time schedule. Ms. Decker said that the sale can proceed with the understanding that the staff has the council's approval to proceed with the loans. Ms. Smith stated that she was concerned that the Hessels should not lose any more money. Ms. Decker said that it had been stated in the staff notes that Mr. Bennett only needed the council's support of the project to proceed with the loan applications. Councilor Schue moved, seconded by Councilor Obie, to accept the recommendation of the Historic Review Board, and further, to adopt the policy recommendation outlined in the staff memo dated May 19, 1983. e Councilor Ball stated that he was uncomfortable with the amount of information given and that he was being asked to dedicate public funds without a fair market value of the property. He said that the City will be in third place for the loan and therefore he cannot determine the loan-to-value ratio. He said there was inadequate information for him to proceed, although he commended the staff and Mr. Bennett for their work. Mayor Keller responded that others were also concerned and that an amendment to the motion calling for an interim report would be appropriate. Mr. Ball said he understood that the approval must be made tonight, but that he is not ready to commit the funds. Mr. Keller asked Mr. Gleason if a fair market value could be obtained by Thursday. Mr. Gleason responded that a value appraisal would take approximately one month and that the appraisal had not been performed because funding for such an action is substantial and had not been approved. Councilor Holmer stated that the shared Mr. Ball's concern over the use of public funds in this manner and the issue of adding to the supply of office space in the downtown area. He also stated that he disagreed on the propriety of restoring the building based on aesthetic grounds. Councilor Lindberg asked staff to clarify if HUD would perform the appraisal. Ms. Decker said that the HUD funds will require a fair market appraisal, but that HUD would not perform the appraisal. Answering Mr. Lindberg's question of the cost of the appraisal, Ms. Decker stated that it has not been decided whether it will be paid for by the developer or by the City. Mr. Lindberg asked if the appraisal will satisfy Mr. Ball's questions and the requirements for the loans. Ms. Decker stated that the appraisal was a necessary step in obtaining the loans and would address Mr. Ball's questions. e MINUTES--Eugene City Council May 23, 1983 Page 6