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CITY OF EUGENE, OREGON
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<br />Notes to Basic Financial Statements
<br />
<br />continued
<br />(4) Detailed Notes on All Funds, continued
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<br /> (H) Noncurrent Liabilities, continued
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<br /> Conduit Debt
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<br />On December 27, 2010, the City issued $6,900,000 of Bank Loan Revenue Bonds, dated December 30, 2010,
<br />bearing a variable interest rate, and maturing on December 27, 2035. The bonds were issued to provide access to
<br />tax-exempt interest rates to Woolworth Properties, LLC for the construction of the Woolworth Building, which is
<br />located within the City’s Downtown Urban Renewal District. The City is not obligated in any manner for repayment of
<br />the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. As of
<br />June 30, 2018, $5,763,759 of the bonds were outstanding.
<br />
<br />Notes Payable
<br />
<br />The City has entered into contracts with the U.S. Department of Housing and Urban Development (HUD) as a
<br />guarantor for loan guarantees made under HUD’s Section 108 Loan Guarantee Program (Program). The Program is
<br />a source of financing for economic development.
<br />
<br />HUD contracts for loan guarantee assistance contain certain security provisions. The primary security is a pledge by
<br />the City of its current and future Community Development Block Grant funds. The City provides additional security for
<br />each Guaranteed Loan in the form of property liens.
<br />
<br />In July 2008, the City borrowed $2,706,000 from HUD to finance the purchase of the historic Washburne and Centre
<br />Court buildings in the Urban Renewal Downtown District. On May 28, 2015, the City entered into an agreement with
<br />HUD to refinance this loan. The loan has an interest rate ranging from 0.28% to 3.15%, maturing on August 1, 2027.
<br />
<br />On November 16, 2010, the City entered into a contract with HUD to borrow $5,189,000 to support the rehabilitation
<br />of the historic Washburne and Centre Court buildings in the Urban Renewal Downtown District. On May 28, 2015, the
<br />City entered into an agreement with HUD to refinance this loan, pay down the balance, and remove the Washburne
<br />building as collateral. The loan has an interest rate ranging from 0.28% to 3.50%, maturing on August 1, 2030.
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<br />Loan Ending
<br />Governmental activities amount Interest rates (%)balance
<br />Notes payable:
<br />Housing and Urban Development -
<br />Centre Court Building $2,706,000 0.280% to 3.150%835,000
<br />Centre Court Building Rehabilitation 5,189,000
<br />0.280% to 3.500%4,649,000
<br />$7,895,000 5,484,000
<br />
<br />Annual debt service requirements to maturity for notes payable are as follows:
<br />
<br />Fiscal year
<br />ending June 30 Principal Interest
<br />2019 $ 204,000 169,395
<br />2020 204,000 166,120
<br />2021 204,000 162,183
<br />2022 204,000 157,767
<br />2023 204,000 152,871
<br />2024-2028 1,015,000 678,141
<br />2029-2031 3,449,000 288,768
<br /> $ 5,484,000 1,775,245
<br />Governmental activities
<br /> The HUD notes will be repaid from principal and interest payments received from a loan to Beam Properties Eugene
<br />LLC, who purchased the property from the City. The loan proceeds from the Beam Properties Eugene LLC loan will
<br />be received in the Community Development Special Revenue Fund.
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<br />December 10, 2018, Meeting - Item 2D
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