Item A: Downtown Development Financial Tools

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Potential Development Resources in the Downtown District in FY07 Approximate FY07 Amount Available Balance Available (unrestricted cash) $ 4.3 million Borrowing capacity assuming plan amendment and repayment over 16 years 13.0 million Downtown Loan Funds1.8 million Total Amount Available $19.1 million Downtown Loan Funds: Downtown Revitalization Loan Program (DRLP) The DRLP is a revolving loan program funded through Urban Renewal District program revenue. The FY08 budget will include approximately $1.7 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 following planning documents: Urban Renewal Plan for Central Eugene Project, A Vision for Greater Downtown Eugene, 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, pedestrian cover, 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.