Item 2: HUD Section 108/BEDI Individual Project

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing: Housing and Urban Development Section 108/Brownfield Economic Development Initiative Individual Project Meeting Date: July 16, 2007 Agenda Item Number: 2 Department: Planning and Development Staff Contact: Denny Braud www.eugene-or.gov Contact Telephone Number: 682-5536 ISSUE STATEMENT The City Council is conducting a public hearing on the use of Housing and Urban Development Section 108 Loan Guarantee Program (Section 108) funds in combination with the Brownfield Economic Development Initiative (BEDI) grant to acquire property in downtown Eugene. The proposed parcels are part of the West Broadway Redevelopment Project. They are located in the area bounded by thth Willamette and Charnelton Streets between 8 and 10 avenues. The properties are: 43 West Broad- way, 858 Willamette, 44 West Broadway (Centre Court Building) and adjacent subsurface lot, 62 West Broadway (Washburne Building), and 110 and 164 West Broadway (see Attachment A: Redevelopment Area) BACKGROUND The City received notice in February 2006 of the award of a $2 million BEDI grant to assist redevelopment projects within the City's two urban renewal districts. BEDI funds must be used in conjunction with projects financed by Section 108 funds. Section 108 is the loan guarantee provision of the federal Community Development Block Grant (CDBG) program. Section 108 allows cities to borrow up to five times their annual CDBG allocation. In July 2006, Housing and Urban Development (HUD) approved the City’s Section 108 application to create a loan pool, to be used with the BEDI grant, for redevelopment projects within the Downtown and Riverfront urban renewal districts. Eugene’s approved Section 108 loan guarantee is $7,895,000. On February 26, 2007, the council approved an ordinance (No. 20376) authorizing the use of Section 108 as a financing tool. The ordinance established the City’s general ability to borrow for Section 108 projects with the stipulation that individual projects be approved by council resolution only after a public hearing conducted by the council. Individual Project Approval Process To spend the Section 108/BEDI funds, HUD requires that the specific project funding request be approved by the council following a public comment period and a public hearing. Citizen participation involves a 30-day public comment period, review by the CDBG Advisory Committee, and a public hearing conducted by the council. Final action will include council review and a financing resolution L:\CMO\2007 Council Agendas\M070716\S0707162.doc