Item B: URA - West Broadway Preliminary Financing Plan

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EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Work Session: West Broadway Preliminary Finance Plan Meeting Date: May 29, 2007 Agenda Item Number: B Department: Central Services Staff Contact: Sue Cutsogeorge www.eugene-or.gov Contact Telephone Number: 682-5589 ISSUE STATEMENT The Urban Renewal Agency (URA) is asked to begin the process for making a substantial amendment to the Downtown Urban Renewal Plan. This action is time sensitive because it will take about 100 days to amend the plan, and the plan must be amended before the URA can enter into any borrowing agreements to accomplish the West Broadway redevelopment project. Additional action will be required to complete a financing plan and to accomplish all of the financing activities for the proposed project. BACKGROUND URA and City Council Action History The full URA and council action history for the West Broadway redevelopment project, as well as for the Brownfields Economic Development Initiative (BEDI) grant, HUD Section 108 Loan, and Downtown Urban Renewal District is included as Attachment A. Most recently, on May 14, the council (acting as the Urban Renewal Agency Board) selected Beam and KWG as developers and directed the Agency Director to, among other things, initiate actions related to the financial tools needed to accomplish the West Broadway redevelopment project. Concept details for a combined approach have yet to be formalized. At this point in the process, therefore, specific financial details about the redevelopment effort are not yet available. Preliminary Finance Plan Although specific financial details for the joint developer redevelopment plan are not yet available, the City and the URA must begin the urban renewal substantial plan amendment process to accommodate a project of this scale. The amendment will allow the City to utilize urban renewal funds, one of the financial tools available for redevelopment efforts. The timeline for amending the plan is several months long. If the City and the URA want the ability to utilize urban renewal funds for the West Broadway redevelopment this fall, the process must begin now. To begin the process of putting the necessary financing tools in place for this project, a preliminary finance plan has been developed. The preliminary finance plan is derived from assumptions about how the requests from the two developers might work together, based on information in the supplemental materials submitted by each developer. Additional refinement of the finance plan will occur over the next several months, as the City and developers continue their discussions on key aspects of the development agreement. Once the financial information is refined, staff will bring a revised finance plan to the council for approval (anticipated for September). L:\CMO\2007 Council Agendas\M070529\S070529B.doc