09/18/1991 Meeting - Laserfiche WebLink

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e deadlines to the privata sector that would have not have otherwise been ex- tended on a community-generated proposal. Responding to question, Mr. Hoffman said that it was his understanding of the neighborhood/developer agreement that Lorig Associates, Inc., would be al- lowed six months to secure financing and twelve months to begin construction. He feels that the proposal, as he outlined, seems reasonable. He noted, however, that it is difficult to predict time lines at this point and said that he would be willing to report back to the council after a year if the project was not proceeding as planned. Mr. Hoffman emphasized that Lorig Associates, Inc., would not proceed with the project if it did not believe that it is workable. Mr. Boles said that it is the neighbors' expectation that the developer would be able to secure financing within six months and the project would be under- way in May 1992 to take advantage of the tax credits. If the developer is unable to meet this obligation, Mr. Boles said that he would have a difficult time supporting the project. Mr. Rutan commented on the many uncertainties that exist around the project. The council should publicly recognize that Lorig Associates, Inc., is a high-quality developer who will pursue this project in a judicious, profes- sional manner. Responding to a question from Mr. Green, Jan Bohman, Planning and Development Department, said that the City had two respondents to the RFP: Lorig Associ- e ates, Inc., and the community organization. There has been no other informal interest in the building. Mr. Green pointed out that there does not seem to be much interest outside of Lorig Associates, Inc., in developing this par- ticular piece of property. Ms. Ehrman inquired about how the historic designation of the property would affect the City's ability to develop the site, if the property were recon- veyed to the City. In response, Mr. Hoffman said that it would be difficult for the City to preserve the tax credits unless it used the same development plans. It would be difficult, but not impossible, to remove the historic designation. If the City was able to demonstrate that it could find no real economic use for the building, it might be able to destroy the building. Ms. Ehrman commented that it was the City's initial intent, in its agreement to preserve the building, that the City would have as few municipal resources involved in the project as possible. Mr. Bowers said that the historic status of the site would severely limit the City's ability to develop the site. The City would no longer be able to tear the building down, unless it was able to remove its historic designation. Mr. Nicholson recognized that the potential time line problems might not be under the developer's control. He noted that the value of the building is not certain at this point and said that it is appropriate for the council to reexamine the agreement after a certain time, if the project cannot proceed as outlined. e -- MINUTES--Eugene City Council September 18, 1991 Page 5 -