CC Minutes - 06/18/01 Work Session

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Mayor Torrey asked if the negotiating parties considered other sites in the city, possibly in the Glenwood area. Mr. Johnson explained that the only site outside the Hilyard campus considered by the group was the area of the Riverfront Research Park. He said that the hospital could not locate in Glenwood because of a federal law that limited the ownership of two hospitals within 20 miles; a move across the river would bring the hospital within 19 miles of another hospital it owned in Cottage Grove. Mayor Torrey asked if the negotiating parties discussed instituting a revenue source without a vote. Mr. Johnson said that the council had the choice of how to find the funding. He pointed out that a new revenue source passed by ordinance would probably quickly be referred to the voters. Ms. Taylor determined from Mr. Johnson that the City did not own the parking lot across the street from the library. He said that the hospital indicated the Willamette Street site did not work for its expansion purposes. Mr. Bowers clarified that the site in question was about five acres in size. Mr. Rayor asked if the hospital was proposing to use some of the area in question to develop private medical offices. Mr. Johnson said the hospital's consultant had worked with staff to create an outline of what a medical services zone would look like, and it included a variety of permitted and accessory uses. Mr. Rayor asked where medical offices could be located in the area now. He wanted to know more of what the hospital required for its core services. Mr. Lowe responded that the West University Neighborhood Plan had a policy that limited clinic development in the area. Clinic development was limited to no more than 50 percent of the land area in the block bordered by Patterson and High streets and 11th and 13th avenues. He noted that clinics could develop freely in the commercially zoned properties. Responding to Mr. Rayor's second question, Mr. Johnson said that the hospital did not have a development plan for the six blocks, but had done sufficient work to know what it needed would fit. The first three blocks to the west would constitute the initial building phase, and the balance would be available for future hospital expansion. The level of detail requested by Mr. Rayor was not available. Mr. Meisner asked if auxiliary uses such as medical offices leased to private practitioners by PeaceHealth would be taxable. Mr. Johnson said that if the hospital was not using the structures for its purpose, they were taxable. Mr. Meisner thought the cost-per-bed were very high as projected, and asked if there was discussion about the impact of the hospital expansion on hospital rates. Mr. Johnson distinguished between the initial number of bed and full build-out costs. Mr. Meisner thought the cost-per-bed was still high. Responding to a question from Ms. Nathanson, Mr. Johnson thought the costs of development on the Crescent property would probably be less, but he was hesitant to quantify that as it was dependent on decisions made by other agencies and by other factors. Ms. Nathanson asked about the traffic impact if the hospital chose to locate a clinic on the Crescent property and the remainder was developed in high-density development; would it be greater or lesser than the traffic generated by a hospital at that site? Mr. Johnson was not sure, noting the complications created by shift employees coming and going at non-peak hours. Mr. Lowe reviewed the range of unit assumptions for R-4 zones, which were from 30 to 120 units per acre. The market did not tend to support the higher end of the range, and he estimated development was more likely to occur at the range of 40 units per acre. He believed that would be equivalent to the impact of a new hospital at the site. He said that development above that level would greatly exceed the traffic generated by the hospital. Ms. Nathanson observed it appeared the City would have a transportation problem, "regardless." MINUTES--Eugene City Council June 18, 2001 Page 7 Work Session