Item A: Downtown Development Financial Tools

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D. Downtown Revitalization Loan Program (DRLP) Downtown Revitalization Loan Program Summary Available funds FY08: $2.2 million Building improvements within Downtown Urban Renewal District Below market interest rate Matched with private financing The DRLP is a revolving loan program funded through Urban Renewal District program revenue. The FY08 budget will include approximately $2.2 million available for DRLP loans, with approximately $72,000 in principal and interest repayments forecasted in FY08. Available to businesses and property owners located within the Downtown Urban Renewal District, the DRLP is a flexible financing program designed to encourage investments within the Downtown District that contribute to the economic vibrancy and density goals for downtown. The primary goal of the DRLP is to provide funding assistance to projects that meet the goals and objectives of the Urban Renewal Plan for Central Eugene Project and the Eugene Downtown Plan. The program is also designed to be responsive to unique redevelopment opportunities, specific downtown redevelopment challenges, and specific individual project financing needs. The DRLP aims to encourage private, non-profit, and mixed-use development and public/private partnerships in overcoming issues with a low loan to value ratio, insufficient cash flow, and extraordinary project specific costs. The DRLP provides project financing typically between 25% and 50% of total eligible project costs. Eligible projects include building rehabilitation, façade improvements, tenant improvements, awnings, historic preservation, and accessibility improvements. Remaining project financing is provided by private sources. Loan amounts are generally between $10,000 and $500,000. The URA currently has $573,000 of outstanding loans under the DRLP. The revolving nature of the program means that it is self-financing. As new loans are made, the payments on the loans are then returned to the loan pool and loaned out for new projects. Loans are approved by the City Manager. Example:One East Broadway In 2004, One East Broadway (northeast corner of Willamette and Broadway with Ovessi Rugs at street level) received a $288,000 DRLP loan for the rehabilitation of the commercial building. DRLP funds were matched with $832,000 in private financing and $112,000 in owners’ equity. The ground floor at One East Broadway had been vacant or underutilized for many years prior to the redevelopment. In 2006, Kazem Oveissi & Rowell Brokaw Architects received Downtown Excellence Award for Leadership and Vision for their new investment in the building. Examples of other downtown projects that have been assisted by DRLP funds include Adam’s Place, Downtown English, Harlequin Beads & Jewelry, The Shedd, Bradford’s Hi-Fidelity, Fenton & Lee, Rouge River Brewing Company, The Strand, Downtown Athletic Club, Full City Coffee Roasters, Saturday Market, and Tiffany Building. E. Affordable Housing Tools Affordable Housing Summary Low-Income Housing Tax Credits State administered o Equity for mixed-income or entirely affordable projects o Other potential tools for downtown: SDC Waivers, Property Tax Exemption, and Homeownership Assistance Program Page 7 of 13