Item B: Joint Meeting with EWEB to Discuss Riverfront Property

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Planning Issues On April 12, 2004, City Council adopted the updated Downtown Plan policies as a refinement of the Metro Plan. Policy 3 on Page 29 of the plan pertains to the redevelopment of the EWEB property. The same language was added to the Eugene Code as section 9.9540. The policy and code section stipulate that approval of a master plan for the EWEB riverfront property is required before any redevelopment, land use application, rezoning, Metro Plan or refinement plan amendment is approved for uses not associated with EWEB functions. The policy is quoted in full below, under the “Related City Policies” section. The required master plan is a Type II land use application, with review and approval at a City staff level and an appeal process before a hearings official. Since the majority of the property is zoned public land and designated for Heavy Industrial use, a rezoning application and a Metro Plan Amendment are required for the property to be sold and redeveloped for another use. Similar to the master plan requirement, the rezoning application can be approved by staff. However, the Metro Plan amendment must be approved by the City Council, after public hearings before the Planning Commission and City Council. EWEB could elect to have the master plan reviewed concurrently with all other required applications, including the Metro Plan and rezoning applications, or the master plan could be approved prior to the Metro Plan application. Sale of EWEB Property Based on its internal financial analysis, EWEB has determined that it needs to sell at least a portion of the riverfront property to fund relocation to the Roosevelt site. Attachment B indicates the property that EWEB is considering selling. The property for sale would likely exclude the existing steam plant, the substation area to the southeast, and the administration building and plaza to the northwest. Since a lot line adjustment application would be required to create the tax lots available for sale, EWEB would need to address the requirements for a master plan prior to closing on the sale of any of its riverfront property. EWEB has the sole authority to determine whether to sell EWEB property and when to declare the property surplus. A declaration of surplus is made by a majority vote of the Board approving a resolution declaring a parcel surplus and authorizing the General Manager to begin disposal of the property. EWEB must then offer the City the first opportunity to acquire the property. EC 2.196 was added to the Code in 1987 and authorizes the EWEB Board to “dispose of real property not needed for utility purposes in accordance with state law.” That power was conditioned, however, upon granting the City “the opportunity to obtain the property for other municipal purposes by notifying the City Manager of its availability.” EWEB must also obtain approval from the City Council for any long-term debt that EWEB intends to issue for construction financing. If the City wants to acquire the property, the City Manager must request negotiations within 30 days of initial notification. The City Manager and the EWEB General Manager would then negotiate an agreement to compensate EWEB for the property. The agreed transfer and compensation must be completed within five years from the date the City Manager notifies EWEB of the City’s interest in acquiring the property. If the City Manager does not request negotiations, or the transfer and compensation is not completed within five years, EWEB may dispose of the property in any manner it deems appropriate. The City may also choose to waive its right to purchase the site prior to the end of the option period. L:\CMO\2007 Council Agendas\M070212\S070212B.doc