CC Minutes - 08/13/08 Work Session

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Mr. Ruiz said a well-rounded discussion of the University’s contribution to the City and the community at- large was an important conversation to have. He said that such a dialogue could easily be initiated between himself and University of Oregon President David Frohnmayer. Mr. Klein offered some examples of City resources that received financial and/or administrative support from the University including the police substation near Sacred Heart Medical Center and inter- governmental agreements involving the Eugene Fire Department. Ms. Bettman asked if it was the Council’s purview to be allowed to put conditions on an alley vacation such as the one being discussed. Mr. Klein replied that the council was allowed to put certain conditions on vacations, but that they must be consistent both with the Eugene City Code as well any constitutional restraints on what the City could require. He felt a court would say that the amount which the council was trying to require the University to pay would not be allowed because it fell outside of guidelines listed in the City Code. Ms. Bettman asked how parking would not be included in the value of a property as a source of potential revenue. Mr. Klein responded that revenue-producing capacity was only one of three methods that appraisers used to determine the value of property, and that the estimations in the Basis of Value report were arrived at by examination of the real market value of the property rather than an examination of revenue- producing capacity. Ms. Bettman asked if the Basis of Value report took into account any of the easements on the subject properties. Mr. Klein indicated he had no such information in that regard. Ms. Bettman emphasized the Basis of Value report was not an appraisal. Ms. Bettman said she would be willing to introduce a motion to send the City Manager back to the University to renegotiate the value of the special assessment based on more realistic allocations of benefit that included consideration of the revenue-producing capacity of the properties. Ms. Bettman commented there was a history of inequity between the University of Oregon and the City of Eugene and that the City Council rarely had any leverage to address issues of the University’s benefits to the community versus its demands on City resources. Mr. Clark said the conversation regarding public safety with regard to the University might be better addressed at a later time. Mr. Clark said the conversation regarding the alley and street vacations seemed fairly arbitrary with regard to the assessed values and reductions being discussed, and he was having a tough time disagreeing with the expert recommendations of City staff. He asked Mr. Klein if the City would be getting into any sort of legal trouble with the University by arbitrarily adjusting the special assessment figures, and also what might be a better mechanism to determine those figures more thoughtfully. Mr. Klein replied the City would get into trouble legally if it acted arbitrarily and felt it would be difficult to determine a better mechanism to determine special assessment figures if the council’s intent was to settle the matter in a timely fashion. Mr. Klein reminded council the person who had signed off on the Basis of Value report, Real Property Officer Lloyd Williams, was a licensed appraiser who engaged in special assessment determinations on behalf of the City on a regular basis. MINUTES—Eugene City Council August 13, 2008 Page 4 Work Session