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<br /> <br />ECC <br />UGENE ITY OUNCIL <br />AIS <br />GENDA TEM UMMARY <br /> <br /> <br /> <br /> <br />Work Session: Downtown Development Financial Tools <br /> <br /> <br /> <br />Meeting Date: April 25, 2007 Agenda Item Number: A <br />Department: Central Services Staff Contact: Sue Cutsogeorge <br />www.eugene-or.gov Contact Telephone Number: 682-5589 <br /> <br /> <br /> <br /> <br /> <br />ISSUE STATEMENT <br /> <br />This is an informational work session addressing the potential use of financial tools to encourage <br />downtown development efforts. The Agenda Item Summary (AIS) provides information on the types of <br />tools available and offers two hypothetical case studies to illustrate their use. No action is required of <br />the council at this work session. <br /> <br /> <br />BACKGROUND <br /> <br />Downtown provides the primary identity and one of the main economic drivers for the city. A diverse, <br />densely developed, economically healthy downtown benefits the entire community. The council has <br />repeatedly expressed its commitment to making downtown Eugene more attractive and vibrant for <br />business, cultural activities, residents and visitors. The Downtown Plan, adopted by the council in April <br />2004, includes the following policy: Use downtown development tools and incentives to encourage <br />development that provides character and density downtown. Other policies in the Downtown Plan <br />encourage public-private partnerships, the creation of active places, increased employment, greater density <br />of development, and housing opportunities. Implementation of the policies reinforce downtown’s role as <br />the community’s center for culture, commerce, and urban life. <br /> <br />Typically, downtown development is more costly and carries greater risk than development in other <br />areas of the city. Several factors contribute to the increased cost of developing downtown, including <br />cost of land and land consolidation, multi-story development requirements, parking, environmental <br />conditions, and construction staging. Currently, the lease rates possible in the downtown market are not <br />high enough to overcome the increased costs. <br /> <br />The use of public funds can help address the higher cost of downtown development. The need for <br />public assistance is determined through the analysis of project financial pro forma. Not every project <br />requires the use of public funds or development assistance. For downtown development, however, the <br />use of public tools is often the critical determining factor of project realization. <br /> <br />Financial Tools for Downtown Development <br /> <br />There are several financial tools that may be used to create a downtown development financing plan. <br />The attached memo from Community Development Division Manager Mike Sullivan describes these <br />tools in detail. Briefly, the tools are: <br /> L:\CMO\2007 Council Agendas\M070425\S070425A.doc <br /> <br />