Item 3: Resolution Authorizing HUD Section 108 Revenue Bonds

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: Resolution 4914 Authorizing Execution of a HUD Section 108 Loan Contract in the Amount of $7,895,000 and Notes in the Amount of $7,895,000 Meeting Date: July 23, 2007 Agenda Item Number: 3 Department: Central Services Staff Contact: Sue Cutsogeorge www.eugene-or.gov Contact Telephone Number: 682-5589 ISSUE STATEMENT The City Council has put in place the ability for the City to use federal Housing and Urban Development Section 108 Loan Guarantee Program (Section 108) funds in combination with the Brownfield Economic Development Initiative (BEDI) grant. The proposed project would use the funds to acquire property in downtown Eugene as part of the West Broadway Redevelopment Project. The current resolution, as well as an Urban Renewal Agency (URA) resolution on the same agenda, will allow the City to execute the Section 108 documents, after council approves additional actions related to the project. BACKGROUND The City received an award notice in February 2006 for 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. The Housing and Urban Development agency (HUD) approved the City’s Section 108 application in July 2006, to be used with the BEDI grant for redevelopment projects within the Downtown and Riverfront urban renewal districts. The council approved an ordinance (No. 20376) authorizing the use of Section 108 as a financing tool on February 26, 2007. 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 at council. The council conducted a public hearing on the proposed project to use Section 108 funds on July 16, 2007. At that public hearing, two citizens spoke about the proposed project. Subsequent to the public hearing, staff placed the draft HUD application on the City’s web site (www.eugene-or.gov/downtown), and sent a note to all interested parties about the availability of the materials. The full council and URA history on the West Broadway redevelopment effort, as well as the Section 108 and BEDI grant, can be found in Attachment A. L:\CMO\2007 Council Agendas\M070723\S0707233.doc