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Mr. Farr said he believed that expansion space should be built into the new library and it should be done now. He pointed out that the new library will increase library use "even without growth in the City of Eugene." He expressed support for the staff recommendation, saying he cannot see a "cleaner method" of funding the expansion at this time. Addressing a question from Mr. Lee, Mr. Johnson said the proposed motion included a third part- -about $750,000 annually set aside to handle additional growth in service demands--a portion of which would be used if necessary. In response to a follow-up question from Mr. Lee, Mr. Klein confirmed that the Sears building could be leased to another entity with proceeds going to the library. He said he would have to review the Downtown Urban Renewal Plan to give a more definitive answer. He added that if the building were involved in a long-term lease, the proceeds may be limited to authorized downtown urban renewal projects. At minimum, any lease payments would become assets of the Urban Renewal Agency. Mr. Johnson said that in order to lease the building at fair market value, it would require a costly renovation. Mr. Pap8 ascertained that the building and the half block across the street were purchased for library use and cost the City approximately $900,000. Mayor Torrey said it was important to understand that the value of the property now is the value of the open land where the new library will be built, plus the Sears building and the parking lot east of it. Addressing a question from Mr. PapS, Lew Bowers, Planning and Development Department, said the current value of the property purchased by the Urban Renewal Agency, if sold, would realize about $1.4 to $1.7 million. In response to a follow-up question, Mr. Bowers said taxes are based on use of the building and it was currently generating tax revenue. Mr. Pap8 said he was not in favor of the City or public entities speculating on real estate by retaining the building. He added that he was also opposed to the third part of the motion. Mr. Rayor agreed with Mr. PapS's position, saying that retaining the building would make the proposal "fiscally unbalanced." Mr. Johnson pointed out that the figures were estimates and the City may not be able to afford to build the new library (with or without the expansion space) without the sale of assets. Mayor Torrey said he was concerned about other facility needs of the City, e.g., a new City Hall, and about revenue associated with those needs. He said he was prepared to support the staff recommendation under the following conditions: 1) ask the committee for an update on funding efforts in 90 days, and build the library anyway; and 2) be prepared to sell the assets, but ensure that the uses are consistent with the City's goals. Mayor Torrey said he was convinced that a trade for assets of equal value could be brokered. Ms. Nathanson noted the creative ideas that have surfaced during this discussion and said she felt as though she were being pushed into a decision without having reviewed the broad range of options for the Sears building. She acknowledged that with a good analysis, she may decide the best thing to do is turn it over to a private entity for redevelopment, along with other City property Minutes--Eugene City Council March 8, 1999 Page 5 5:30 p.m.