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<br /> <br />The mechanism for the City to access tax increment revenues to repay the Section 108 loan is through a <br />bond of the URA. Under this approach, the agency would issue urban renewal bonds to the City in the <br />same amount, and under the same terms as, the Section 108 loan with HUD. In the past, the City and <br />the agency have handled this type of transaction between themselves through an intergovernmental <br />agreement. (The library is one such example.) Bond counsel has advised, however, that a bond would <br />be HUD’s preferred type of agreement. Attachment A includes the proposed agency resolution <br />authorizing the urban renewal bonds to repay the Section 108. <br /> <br /> <br />RELATED CITY POLICIES <br />Downtown development is guided by policies in the Downtown Plan and the Growth Management <br />Policies. With regard to financial tools to assist with development, the Downtown Plan includes policies <br />that state that the City should: “Use downtown development tools and incentives to encourage <br />development that provides character and density downtown.” <br /> <br />A number of financial policies would guide the creation of the final economic development finance plan, <br />including the City’s debt policies. <br /> <br /> <br />AGENCY OPTIONS <br /> <br />The URA may adopt the resolution as proposed, suggest amendments to the resolution, or decline to <br />authorize the resolution. If the resolution is not adopted, the City will not be able to use tax increment <br />funds to repay the Section 108 loan. As a result, the City may not have sufficient resources to repay the <br />Section 108 loan and may not be able to access the $2 million BEDI grant for the purchase of property <br />in the redevelopment area. <br /> <br /> <br />AGENCY DIRECTOR’S RECOMMENDATION <br /> <br />The agency director recommends approval of the resolution. <br /> <br /> <br />SUGGESTED MOTION <br /> <br />Move to adopt Resolution 1044 authorizin the issuance of urban renewal bonds for projects receiving <br />g <br />funding from HUD Section 108 loan proceeds. <br /> <br /> <br />ATTACHMENT <br /> <br /> <br />A.Proposed Resolution <br /> <br /> <br />FOR MORE INFORMATION <br /> <br />Staff Contact: Sue Cutsogeorge, Financial Analysis Manager <br />Telephone: 682-5589 <br />Staff E-Mail: sue.l.cutsogeorge@ci.eugene.or.us <br /> L:\CMO\2007 Council Agendas\M070723\S0707234.doc <br />