Item A: Downtown Development Financial Tools

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million in borrowing capacity. Taken together with available cash, the total available resources is approximately $19.5 million (see charts below for potential and current capacity). (A further explanation of assumptions follows the chart and an explanation of the Downtown Loan Funds is on Page 7.) Summary: Current Capacity of the Downtown Urban Renewal District Approximate for FY08 Balance Available (unrestricted cash) $ 4.3 million Additional Spending Capacity 0.2 million Downtown Loan Funds 2.2 million Total Amount Available $ 6.7 million Summary: Potential Capacity of the Downtown Urban Renewal District Approximate for FY08 Balance Available (uncommitted cash) $ 4.3 million Borrowing Capacity – assuming plan amendment & repayment over 16 years 13.0 million Downtown Loan Funds 2.2 million Total Amount Available $19.5 million Downtown District “Maximum Indebtedness”: Oregon Statutes require each district that receives property taxes to include a “maximum indebtedness” limit in their urban renewal plans. The Downtown District amended its plan in 1998 to include a maximum indebtedness limit of $33 million. “Maximum indebtedness” is not a legal debt limit, but more accurately described as a spending limit. Certain expenditures of the district are included in the “maximum indebtedness” calculation and certain expenditures are excluded. For instance, interest on debt and downtown loan funds are excluded from the calculation, but administrative expenses or direct cash payments for projects are included in the calculation. There is about $4.6 million remaining under the $33 million limit in the Downtown District. It is currently projected that the district will have collected sufficient tax revenues to fund the $33 million spending limit in FY09. For the district to enter into obligations that exceed the current limit (~ $4.6 million), a “substantial amendment” to the district’s plan would be needed. The process is determined by Oregon Statute and the district’s plan. City-wide notice is required for: Changes in the maximum indebtedness; and Expansion of the district boundaries by more than 1% The time necessary to complete the process for this type of special amendment is approximately 100 days. The major steps are: Eugene Redevelopment Advisory Committee (ERAC) may meet to discuss the proposed plan amendments and make a recommendation to the City Council City Council meets to initiate plan amendments URA submits plan amendments and report on the plan to taxing bodies affected by the district for review and comment City sends out special City-wide notice URA meets to receive the revised plan and report on the plan City Council holds a public hearing on the plan amendment ordinance City Council meets to approve ordinance amending the plan Page 3 of 13