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<br />'e <br /> <br />e <br /> <br />e <br /> <br />IV. DISPOSITION AND DEVELOPMENT AGREEMENT--AX BILLY BUILDING <br /> <br />Mr. Gleason briefly discussed the agreement the council will consider at its <br />next regular meeting. He emphasized that the council has the responsibility <br />and right to direct development projects. The projects often take a long <br />time to prepare and accomplish. He asked for comments from councilors. <br /> <br />All councilors present said they will vote to approve the project. <br /> <br />Mr. Holmer said the council could have addressed some community concerns <br />about the project, but the council did not have sufficient information about <br />the bank, the investment of the developer, and what the City will gain from <br />the project. Answering a question from Mayor Obie, Mr. Holmer said it would <br />have been appropriate for the council to address the concerns when the <br />federal grant application was denied. <br /> <br />Mr. Miller had asked many questions about the project. He had learned the <br />"worse case scenerio" for the City is no worse than if nothing is done. <br /> <br />Ms. Schue was comfortable with the project because she had learned much <br />during Community Development Committee discussions. The presentation by an <br />Oregon Bank representative had been informative. She was not sure other <br />councilors had heard that presentation. <br /> <br />Mr. Hansen said the council does not need to be involved in every project, <br />but when the projects are large, the council should be asked to "sign off" at <br />some points because the process builds. If Mr. Gleason will recommend a <br />change in future procedures so that the council is briefed at specific <br />points, the process will be facilitated. A check list could be used. <br /> <br />Ms. Bascom said Ms. Wooten was concerned about the large portion of Eugene <br />development funds that were committed to the Ax Billy project when the <br />federal grant request was denied. <br /> <br />Mr. Gleason reviewed the process used to develop funding for the Ax Billy <br />project and the financing of the project. He said the present condition of <br />the building is very bad. Something had to be done. He emphasized that the <br />project will be appraised at about $4 million when it is completed. Tax <br />payments to the City will be increased as well as payments to School District <br />4-J and Lane Transit District. Answering a question from Mr. Miller, Mr. <br />Gleason said the last two years of payments for the purchase of the building <br />($213,000) are the most "at risk" of the City's involvement. <br /> <br />Mr. Obie approved the procedural changes suggested by Mr. Hansen. <br /> <br />MINUTES--Eugene City Council <br /> <br />February 25, 1985 <br /> <br />Page 7 <br />