Item B: Review of West Broadway Request for Qualifications Responses

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· Honest proposal~indicated it\vould need a 13 percent return to be successful, whic.h is realistic . Market generally requires return of between 12 and 20 percent. Proposal indicated it needed structured parking and time to pre-sign tenants before construction began. Proposal contained fall back of adding to block already negotiated" Best response to the RFQ. o Response: There is always competition with existing businesses when new facilities are built, and often opposition to those projects. Competition can create a better marketplace for everyone. . Liked o"vner~occupied bousing component. · Parking would require massive subsidy compared to other proposals. What impact would such a large project have on the tax increment financing program? o Response: A project of this magnitude, possibly $100. million plus, takin.g into consideration tax exemptions associated with the housing, the commercial space would enter the tax rolls.. The cost could possibly be recovered in ten to 20 years, which was the concept of the urban renewal district. A variety of funding tools are under consideration. . KWGwas the most solid, comprehensive proposal, but it contained a heavy list of obligations for the City of Eugene. Would selection of this proposal imply that the City would carry through with those obligations? o Response: This, as with all of the proposals, was viewed as an opening request from the developers. Details needed to be discussed, and adjustments made to the developers expectations and the City's expectations. None of the developers are in a position to identify everything they needed, everything they would do, and bow much it would cost. Those details would develop over time. The role of the committee is to look. at-the RFQ tbat went out and the existing plans and policies, and give the best .advise as to which project and which developer was most responsive, and offered a solution that allowed the City to accomplish its vision. City Council will make a decision based on the staffs deliberations and recommendation, an.d.allocate the City's resources. MidTown. Development . .Developer located in Orem, Utah; found Eugene RFQ while researching for future development opportunities. . Currently working on a project in Orem, outside of Salt Lake City, called MidTown Village, consisting of over 300 units of O\\'11er occupied housing, with mixed use of office over retail; some timeshares; includes community theater. . In other projects, have created parks and donated to the City. . Mostly local retail, designed- to serve tbe tenants. . Project planned to be replicated in four locations, including Ogden and Park (;ity. . Concept would include housing, office and ground. floor retail, hotel spac-e in condominium devrelopment, and parking. . Envision using similar concepts on two downtown Eugene half-bloc.ks (north and south sides of West Broadway bet\\<reen Willamette and Oliv'e streets). . Issues with the Mid1'own Development concepts: o Not clear o.nhow parking would be treated for retail and housing. o Concept assumes den1olition of Washburne and Centre Court Buildings~ MIN1JTES~ Eugene .Redevelopment Advisory (~ommittee February 23, 2007 Hage