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<br />.e <br /> <br />Mr. MacDonald asked for staff response to concerns about the equity of the <br />land swap. Mr. Bowers said that many of the issues surrounding the equity of <br />the land swap are important and would have to be discussed during the negoti- <br />ation process. The City's goal with respect to this proposal has been to <br />receive fair market value for the property. The results of detailed land <br />swap negotiations will be presented in the memorandum of understanding. Mr. <br />Bowers said that staff has conducted a preliminary review of the developer's <br />pro forma estimates and believe that they are reasonable. <br /> <br />Responding to another question by Mr. MacDonald, Mr. Bowers noted that one <br />member of the RFP review committee raised concern that a developer's equity <br />of less than 25 percent would not be acceptable in this lending market. He <br />noted, however, that the City has discussed this issue with several lending <br />institutions who have worked with Lorig in the past. All have indicated that <br />Lorig has not had problems meeting its equity requirements and have expressed <br />an interest in discussing project financing with Lorig. <br /> <br />Responding to a request by Mayor Miller, Mr. Bowers said that it is the <br />City's hope that by having an open public process at the early part of this <br />development agreement the City will be made aware early on of potential con- <br />cerns. As the City moves toward a memorandum of understanding, it will be <br />seeking further guidance from the council on proposal acceptance. <br /> <br />e <br /> <br />Mr. Boles moved, seconded by Ms. Ehrman, to direct the City <br />Manager to execute an exclusive negotiating agreement with <br />Lorig Associates for negotiation of a development agreement <br />for the 8th and Willamette Street site. <br /> <br />Ms. Bascom offered her support of this proposal, noting that Lorig Associates <br />has an established reputation in the community due to its work on lincoln <br />School. <br /> <br />Mr. Green also supported this proposal. He pointed out that Lorig was the <br />only developer who issued a proposal and said that it has a reputation for <br />high-quality development projects. He encouraged the council to refrain from <br />any discussions that would detract from the progress of this project. <br /> <br />Mr. MacDonald indicated his support for the motion. He expressed concern <br />with the potential public concern for the loss of surface parking and asked <br />that the public be made aware that this lot has been targeted for development <br />since its initial purchase. He said that US Bank's potential involvement in <br />the project is encouraging and echoed comments about Lorig's reputation. Mr. <br />MacDonald noted that it is rumored that many employees are parking in that <br />spot in violation of the City's parking ordinance and requested statistics on <br />the percentage of total parking being used by downtown employees. He also <br />pointed out that the Parcade is underutilized and could be used to fill the <br />parking loss. <br /> <br />Mr. Nicholson offered his opposition to the RFP process and said that he <br />cannot support the motion. He stated that public involvement in the project <br /> <br />e <br /> <br />MINUTES--Eugene City Council <br /> <br />February 11, 1991 <br /> <br />Page 6 <br />