02/27/1985 Meeting - Laserfiche WebLink

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e e e Council Bill 2812 was read the second time by council bill number only. Ms. Wooten moved, seconded by Ms. Schue, that the bill be approved and given final passage. Roll call vote; all councilors present voting aye, the bill was declared passed (and became Ordinance No. 19314). Mayor Obie recessed the meeting of the Eugene City Council and reconvened the meeting of the Eugene Urban Renewal Agency. IX. DISPOSITION AND DEVELOPMENT AGREEMENT--AX BILLY BUILDING (memo, background information distributed) City Manager Micheal Gleason introduced the agenda item. Greg Byrne of the Development Department presented the staff report. He introduced Michael Schwartz, President of the Downtown Commission, Tom Fuller, Vice President for Business Services of the Oregon Bank, Bruce Anderson, a member of the Eugene Loan Advisory Committee, and Rob Bennett, the developer. Mr. Schwartz said the Downtown Commission unanimously approved the working drawings of the project and the Development and Disposition Agreement. The development is an important part of the Downtown Plan. The commission supported the project because it is economic diversification for the downtown, it will anchor the south end of the mall, it will mean 50 new jobs the first year, it is a major private investment, it will increase activity in the mall all day, itwill get the Ax Billy Building back into private ownership and back onto the tax rolls, it will mean additional income to the City, an old building will be rehabilitated, and the "spill over effect" which will attract other new businesses to the mall. The project will pay the parking fund $2,725, ad valorem taxes of $11,600, and Lane Transit District taxes of $1,290. Mr. Schwartz said Mr. Bennett, the developer has committed $2.8 million to the project supported by the Oregon Bank. If the project fails, property taxes will be limited to the third floor of the building. The taxes will be $19,374 for 1987. There will be new tax increment taxes. The Loan Advisory Committee reviewed the project and the creative financing package developed by the City. The committee indicated the package responded to policies adopted by the council. He said the project has more strengths than weaknesses. It will give the downtown momentum. He urged unanimous council support. Mr. Fuller said the City must participate in the financing of the project to mitigate the risk to the Oregon Bank. About 75 percent of the loan will be provided by the bank which wants to see the mall succeed and grow. He had found that pUblic/private partnerships such as this one create additional private reinvestment and new investment in the area. Of the approximately $3.9 million needed for the project, $863,000 or about 23 percent will be public money. The balance is in equity provided by the developer in a limited partnership and in financing from the Oregon Bank. He emphasized that the project will improve a vacant building and put it back on the tax ro 11 s . MINUTES--Eugene City Council February 27, 1985 Page 7