12/04/1991 Meeting - Laserfiche WebLink

Home Browse Search

e parking garage. The rental structure would meet criteria to qualify for a housing revenue bond and possibly a ten-year tax-exemption program, depending on income levels of the occupants. Responding to a question from Mr. MacDonald, lew Bowers, Planning and Devel- opment, said the City would not have any financial exposure to a housing revenue bond for this proposal. Mr. Hibschman said that the housing revenue bond would be secured by the project itself. The proposal would require $1.32 million for the construction of the parking garage to serve the build- ing and $325,000 of the value of the land proposed by the developer. Mr. Hibschman said the citizen RFP review committee and the Downtown Commission felt uncomfortable with the amount of revenue needed to construct the under- ground parking garage. The Downtown Commission suggested that the proposal be developed at a different site where surface parking existed. He reviewed the following key issues for the council to consider: 1) does this proposal as presented essentially fit with the goals of downtown housing; 2) is the amount of parking subsidy the most cost-effective use; and 3) is this the most appropriate site for this proposal. Mr. MacDonald suggested that the council consider the impact this proposal would have on parking for lane Community College's downtown center. Greg Smith introduced himself as one of the principals of the project and Eric Jacobson, who has been working on the financial aspects of the proposal. Mr. Smith said that the proposal meets every policy objective and suggested that the council weigh the alternatives to not developing the site against the cost of developing the site. He said the proposal hinges on the issue of e parking. He did not think that the City had much to lose from accepting the proposal. Ms. Bascom asked about alternatives to expending $1.65 million for a private project. Mr. Smith did not think that a proposal for this site could be developed without underground parking. He said that the project could poten- tially be scaled down so that parking would be surface level, but said this would not address the goal of mixed commercial and residential use. Ms. Bascom said there was no guarantee that commercial space would be filled. Mr. Smith explained that the developer would be willing to construct commer- cial space at its expense if demands for such space existed. He said that lease revenues and tax increment financing would then return some of the City's subsidy. Responding to questions from Mr. Boles, Mr. Smith said that parking in the Overpark would be a disincentive to many people who would want immediate access to their vehicles. Mr. Jacobson said that 20 percent of the residents would have to be below 50 percent of the median income for this project to qualify for the housing revenue bond. Mr. Smith said that 50 percent of the tenants would have to be below the median income to qualify for the ten-year tax-exemption program. e MINUTES--Eugene City Council December 4, 1991 Page 8