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year after the site is selected. The Patterson Street underpass project is anticipated to take two years in planning and design. The longer design phase for the underpass reflects the complicated interactions and negotiations that will have to occur with Oregon Department of Transportation ("ODOT"), Union Pacific Railroad, private property owners and EWEB to design this project. Phase 3 Construction Phase The outcome from the third phase of the action plan would be successful completion of construc- tion of a new hospital in Eugene's central core, as well as transportation improvements to pro- vide better access to the hospital development and the river. The Construction Phase for both the hospital and the underpass should take about two years from completion of the design of each project. C. Progress to Date Initial council discussions about hospital expansion and siting in conjunction with PeaceHealth took place in 2001. At a council work session on September 18, 2002, the council directed staff to prepare a draft list of potential sites and inducements for hospital development in Eugene. A continuation of the work session on hospital sites occurred on November 13, 2002. On Septem- ber 24, 2003, council adopted Resolution 4778 regarding hospital siting and incentives. On October 22, 2003, council adopted Ordinance 20299, which accommodates hospital uses in a wider range of zone districts; this ordinance currently is on remand from the Land Use Board of Appeals. On supplemental budget #1 in December 2003, council set aside $500,000 in a reserve for hospital siting. This reserve was meant to provide incentive funding for a hospital that would locate within the central city area. Exhibit 1 sets out a map of the approximate incentive zone for hospital development. This zone is south and west of the Willamette River, and within a 2.25- mile radius of Second Avenue and Chambers Street. The precise boundaries of this area have not been adopted by map through council action. Work sessions were held on several dates in 2004 to update the council on the status of attracting a hospital to Eugene. On January 21, 2004, council directed the City Manager to evaluate three alternatives to extend Agate Street to provide access to a potential hospital located on the EWEB site. On June 16, 2004, council authorized the City Manager to inform McKenzie-Willamette Medical Center ("McKenzie-Willamette") that the City would be willing to undertake construc- tion of two transportation projects, if McKenzie-Willamette constructed a hospital on the EWEB site with a value of not less than $85 million. On September 22, 2004, council directed the City Manager to pursue a development agreement for the benefit of providing access to McKenzie-Willamette via Patterson Street, contingent upon McKenzie-Willamette's constructing an $85 million hospital development with a substantial Willamette River setback. An illustration of the Patterson Street underpass project is included as Exhibit 2 to this action plan. During this time, EWEB has been working to determine whether this move would be feasible from the public utility' s perspective. In order to assist with decision making, EWEB hired an architectural firm to conduct a master planning process for their new site at Roosevelt and 2