Item 3: Resolution Authorizing HUD Section 108 Revenue Bonds

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affordable housing. A private hotelier will own the boutique hotel. The City will own public parking (under the cinema and grocery). See Exhibit B. e. Borrower: The City of Eugene will act as borrower for the Section 108 loan funds. The City will enter into an agreement with the URA to carry out the project. (The URA would use Section 108/BEDI funds to purchase the properties. Subsequently, the URA would sell/convey the property to the development teams.) 4.Repayment Schedule 5.Collateral a. Description The City will pledge payments from a bond issued by the URA as security for the Section 108 loan. The bond is expected to be authorized by the URA at its meeting on July 23, 2007. The bond is expected to be repaid over the life of the Downtown Urban Renewal District, which has a termination date of June 30, 2024. On August 13, 2007, the City Council is scheduled to consider extending the district life to June 30, 2030. b. Source The loan will be repaid from tax increment funds from the URA or with income from the resale of the properties to the two development teams. The debt capacity for the Downtown Urban Renewal District is built only on existing property and tax revenues. It does not rely on tax revenues that have not yet been realized.See Exhibit D.