Agenda Packet 1-29-20 Work Session

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January 29, 2020, Work Session – Item 2 EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Work Session: 1059 Willamette Street Acquisition and Disposition Meeting Date: January 29, 2020 Agenda Item Number: 2 Department: Planning and Development Staff Contact: Allie Camp www.eugene-or.gov Contact Telephone Number: 541-682-5480 ISSUE STATEMENT This work session is on the 1059 Willamette Street site (the former Lane Community College Downtown Center) to share the progress to-date, project goals, and the proposed acquisition and disposition process moving forward. The City has entered into an Option Agreement with LCC to purchase the property through the Land Acquisition for Affordable Housing Program, also referred to as the land bank program. An Option Agreement provides time to perform due diligence activities and does not commit the City to acquire the property—it simply provides the option to do so. The current vision is to redevelop the property into a mixed-income, multi-family residential project. At the work session, the council will be asked to approve the use of Community Development Block Grant (CDBG) dollars to acquire the site and a proposed property disposition process. BACKGROUND The building located at 1059 Willamette Street served as the LCC Downtown Center until 2012 and has been vacant since the new LCC Downtown Campus began serving students. In April 2019, the City Manager submitted a Letter of Interest to LCC President Margaret Hamilton that stated the City of Eugene would like to purchase the property for $500,000, subject to approval from the City Council. City staff identified federal CDBG dollars as a potential resource to acquire the building as part of the Land Acquisition for Affordable Housing Program. On May 16, the LCC Board unanimously passed a motion to authorize President Hamilton to take all actions necessary or appropriate to sell and convey the property to the City of Eugene. Since May, staff have been working to coordinate with LCC and complete preliminary due diligence required by HUD funds. This property has also been identified as one of four projects in the 2016 Downtown Urban Renewal Plan Amendment, making it eligible for up to $6 million in Urban Renewal funds. The plan language is as follows: The Agency may provide up to $6 million in tax increment funds as part of redevelopment of the Old LCC Building, which may include housing or activities that advance the Regional Prosperity Economic Development Plan (e.g., an innovation center with maker space, wet lab, or art/tech incubator). The building will benefit the Plan Area by increasing public usage of the area and stimulating additional public and private investment. This work would include Lane Community College and could include collaboration with others.