Item B: West Broadway Purchase Options

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The option terms and purchase prices associated with each of the purchase options were negotiated independently based on each property owner’s individual circumstances. All of the agreements allow the URA to assign the purchase options to another party. Generally, a majority of the purchase options include an initial six-month option period with the ability to extend for one additional six-month period. To date, the URA has paid option money totaling $34,000 for the right to purchase property with a combined total purchase price of $13,655,000. The URA would be required to pay additional option money totaling $122,000 in order to secure the purchase options for the second six-month period. The combined total purchase price would increase to $13,825,000 after the initial six-month option period. A detailed list of the properties and option terms is included in Attachment A. All of the properties that have received purchase option offers from the URA are included in the aerial map (Attachment B). The URA’s property assembly effort was initiated by the original proposal from Connor and Woolley/Opus. The current focus is on a comprehensive redevelopment strategy that has the potential to transform West Broadway into the “Great Street” envisioned in the Downtown Plan and Vision for Greater Downtown Eugene. The Downtown Plan envisions Broadway with ground floor retail, restaurants, and sidewalk activities such as outdoor cafés. Currently, the two blocks of West Broadway are characterized by high-vacancy, low-density, and low lease rates. A majority of the properties are one- and two-story structures, many of which are underutilized and not well suited for retail use because of the narrow and deep configurations. Several issues need to be considered in assessing the future redevelopment of West Broadway, including design, mix of uses, density, market conditions, and timing. The appropriate scale, orientation and The City has been working with Thomas Hacker design of structures need to be carefully considered. Architects to help visualize the redevelopment potential for West Broadway. The City has also been working with The Farkas Group to help develop strategies for redevelopment of this area. The assemblage of property that is currently being pursued is an important first step. The URA has secured purchase options that have a limited duration; therefore, a limited window of opportunity exists for the URA to proactively pursue redevelopment of West Broadway. There are various strategies to consider regarding the purchase options that have been secured on a majority of the key properties along West Broadway, some include: 1. Issue a Request for Qualifications (RFQ) . Under this strategy, an RFQ would be issued for selection of a qualified developer(s) with a viable redevelopment concept for West Broadway and the capacity to implement a well designed, urban mixed-use development. RFQ criteria for the West Broadway area have been drafted. The criteria are designed to attract a comprehensive redevelopment approach for the area which advances the policies in the Downtown Plan. A copy of draft RFQ criteria is included in Attachment C. There are several advantages to the RFQ strategy. The scale and complexity of the potential redevelopment of this area of West Broadway, together with the limited duration of the option periods, favor an RFQ. An RFQ related to the entire West Broadway area footprint provides the best opportunity to attract the largest number of qualified developer responses and a variety of redevelopment approaches and uses that could be considered. The RFQ strategy provides an opportunity to attract developers who recognize the market potential for the area under a comprehensive redevelopment scenario. It is also possible that more than one developer could be selected to carry out different portions of the overall redevelopment project. L:\CMO\2006 Council Agendas\M061127\S061127B.doc