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e etc. Mr. Hamel asked if everyone in the area would have to pay those assess- ments. Mr. Byrne said that was correct. He explained that the Housing Authority would bring street and utility improvements with them, just as a developer would, and they would be up to City standards. Ms. Smith moved, seconded by Mr. Lindberg, to authorize City Manager to execute an option agreement for 38th and Hilyard landbanking site. Motion carried unanimously. VIII. CONSIDERATION OF COOPERATIVE AGREEMENT WITH LANE COUNTY HOUSING AUTHORITY AND COMMUNITY SERVICES AGENCY (memo distributed) e Mr. Byrne noted the presence of Jim Johnson, Lane County Housing Authority. He explained that the intergovernmental agreement is a relatively routine item that the council has approved in previous years. Federal regulations require any county housing authority to seek the approval of the legislative body of the city before acting within the city limits of the municipality. They request approval to construct, or purchase and maintain up to 30 units of housing within the city limits of Eugene. This would authorize the County to proceed with the 38th and Hilyard site, which would support approximately 25 units. Mr. Lindberg was supportive. He asked, given that the City receives payment in lieu of taxes, what the comparison would be between what would have been the property tax assessment and what the City receives in lieu of taxes. Mr. Byrne answered that it was difficult to make projections because Section 8 rent subsidy is based on the income of the eventual tenant. At this point there is no way to know how deep the subsidy would be. Mr. Johnson said that the payments in lieu of taxes are very small in comparison with the forgone taxes. Mr. Lindberg asked how many units the Housing Authority had within the boundaries of Eugene. Mr. Johnson answered that the largest is Parkview Terrace, a 60- to 70-unit project for the elderly. They have been working under two programs currently to acquire existing housing without rehabilitation and with rehabilitation. They have been successful in acquiring approximately 10 to 15 units within the city limits of Eugene. Ms. Wooten endorsed the program. She asked the same question Mr. Lindberg had asked about the projected Saffley-Brim project in the Eugene Hotel. She had called Mr. McGuire to find out what kind of abatements and/or dismissal of taxes or increased valuation would take place after that redevelopment was done, if any. She asked for that information. Mr. Gleason said that she wanted to know, if the Eugene Hotel becomes a public project, what would happen to the liens, assessments, and other abatements, and what kind of impact this would have in terms of tax increments and financing. He said he would give a report to the council on the subject. Res. No. 3499--A resolution ratifying, affirming, and confirming the execution of a cooperative agreement between the City of Eugene and the Housing Authority and Community Services Agency of Lane County, Oregon. e MINUTES--Eugene City Council April 22, 1981 Page 10