Item 3: Resolution Authorizing HUD Section 108 Revenue Bonds

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ATTACHMENT D Proposed Project Details and HUD Requirements Individual Project Approval Process To spend the Section 108/BEDI funds, HUD requires that the specific project funding re- quest be approved by 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 at council. Final action will in- clude council review and financing resolution followed by HUD approval. The proposed loan would draw down all of the Section 108/BEDI funds at once for the acquisition of thth properties in the area bounded by Willamette and Charnelton Streets between 8 and 10 Avenues. Projects that receive Section 108/BEDI funds must meet project preference criteria, as follows: a) meet a CDBG national objective of benefiting low or moderate income per- sons or eliminating conditions of slums or blight, b) lead to economic revitalization in connection with brownfields, c) be financially feasible, d) be within reasonable risk, e) be likely to be repaid, and f) provide permanent, full-time employment for low and moderate income individuals. The project preference criteria are designed to provide an objective evaluation of the project’s ability to produce an effective and timely outcome. Proposed Individual Project TheUrban Renewal Agency (URA) has secured purchase options on several downtown properties along West Broadway between Willamette Street and Charnelton Street. Sec- tion 108/BEDI funds could be used to purchase properties within the Redevelopment Area. The properties are: 43 West Broadway, 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 E.) The properties are proposed for acquisition using Section 108/BEDI funds due to their unique ability to meet a combination of Federal requirements. The proposed property acquisition would cost $10.8 million under the current purchase option terms (Section 108 of $7,895,000, BEDI grant of $2,000,000, and Urban Renewal funds of $905,000). The proposed acquisitions are a portion of the overall redevelopment concept for West Broadway. The purchase of other optioned property would have to be financed with a combination of other funds. The final agreements, as approved by council, will deter- mine if the properties purchased with Section 108 funds will be contributed to the project or sold to the developers. Section 108 is a loan guarantee program that generally follows the same regulations as the CDBG program. Public benefit is determined by the ultimate development and use of the property that is acquired with Section 108 funds. The majority of the funds for the proposed project would be used to benefit low-income persons. Potential end uses for the property acquisition include retail, office, hotel, cinema, and housing, as detailed in the