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~ III. 8TH AND WILLAMETTE DEVELOPMENT PROPOSAL Scott Luell, Planning and Development Department, gave a brief review of the project's background and indicated that John Brown, Downtown Commission, ;s available for questions. Mr. luell reported that on January 3, 1991, Lor;g and Associates of Seattle, Washington, submitted a proposal to construct an 80,000- to 100,000-square-foot office building on one half of the development site. Lorig competed successfully for U.S. Bancorp's commitment to lease 40,000 square feet of space in the building. He said both the Development Proposal Review Group and the Downtown Commission had unanimously accepted the proposal and forwarded it to the Urban Renewal Agency. He indicated that staff had reviewed confidential financial information of the investors as well as lorig and Associates, and financial projections for the project. Staff has determined that the projections and assumptions of the project seem both reasonable and accurate. Mr. Brown noted that the review group had four areas of concern: 1. The necessity and equity of the exchange; 2. Whether or not the equity contribution by the developer would be sufficient to meet mortgage requirements; e 3. That the site be developed to the maximum feasible density; and 4. The process for dealing with the remaining portion of the site. Mr. Brown said that the Downtown Commission, also felt that the pose in nego- tiation should also address what the City is receiving in the proposed ex- change and how the City would use the property. The commission encouraged the City to include the public review process in the process for development of the property. Mr. Luell said that the proposal is scheduled for a public hearing on Febru- ary 11, with a decision due on February 13 to direct the City Manager's Of- fice to negotiate an exclusive agreement with Lorig Associates. He said the other direction that staff would also be interested in recelvlng at that point is the public siting issue of the surrounding property and public space. Responding to Mr. MacDonald's question regarding the council's involvement in the process, Mr. Gleason said that the owner of the property, the Eugene Urban Renewal Agency, directed the City Manager's Office to develop a negoti- ated agreement on the land transaction. In that land transaction, the coun- cil as the Urban Renewal Agency, has to ensure that the transaction is con- sistent with policies adopted in the plan and the City's Metropolitan Area General Plan. The City will interface with the developer in structuring the relationship in a formal document, which is then brought back to the Urban Renewal Agency. At some point, the land is actually transferred. Mr. e MINUTES--Eugene City Council January 30, 1991 Page 6