CC Minutes - 10/22/08 Work Session

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Ms. Ortiz asked for clarification of Mr. Zelenka’s comments regarding the BOLI prevailing wage determination, adding that she would prefer to stick with the current proposed timeline rather than providing for an additional six months. Mr. Clark inferred that what Mr. Zelenka wanted with regard to the purchase and sale agreement was a short window of time following the BOLI determination during which the City could ultimately veto the project. Mr. Clark asked what elements would need to be addressed by WG Development in the event the prevailing wage determination from BOLI was unfavorable. Mr. Sullivan answered that the labor costs to WG could change drastically as a result of the prevailing wage determination, and that the decision to proceed with increased labor costs would rest with WG Development. Mr. Clark agreed with Mr. Zelenka’s position that the City should attempt to protect its own interests should the prevailing wage matter not play out favorably to either party, but wanted to ensure that WG was given adequate time in which to proceed properly. Ms. Piercy agreed that the City should give WG Development adequate time to execute the project, but asked the council to consider keeping the Opus NW proposal on the table as a backup plan. Ms. Laurence, responding to a request for clarification regarding the project timeline from Ms. Bettman, noted that ten months had been added to the timeline of the project since its inception in order to allow for a more thorough negotiation of the purchase and sale agreement as well as a more realistic timeframe for the drafting of design and construction documentation. She added that the City had also needed additional time in which to address a number of elements such as the alley vacation and the MUPTE tax exemptions. Ms. Bettman felt that the additional time added to the project timeline was troublesome, and worried that the development project might eventually be forced to add even more time. Ms. Laurence, responding to a question from Ms. Bettman, answered that no firm date for completion of the project’s construction had been incorporated into the proposed purchase and sale agreement, but added that preliminary estimates indicated that construction would completed in July of 2011. Ms. Bettman restated that the WG Development project was overly speculative and wanted to keep the door open for Opus NW. Ms. Bettman, seconded by Ms. Taylor, moved to direct the Agency Director to a) th immediately cease negotiations with WG Development for the 10 and Charnelton development site; b) to work with WG Development on a different site for its project; and c) to negotiate with Opus NWR Development as quickly as practicable to set a sale of terms th for the sale and development of the 10 and Charnelton site and to bring an outline of those terms back to the Agency for review and approval. Ms. Bettman noted she recently had a conversation with representatives of Opus NWR and felt they were eager to proceed with the development of their proposed project for the site. Ms. Bettman maintained that the project timelines stated by Opus in their previously submitted proposal were more certain and less speculative. Mr. Sullivan commented that completion dates for the project were dependent on a number of factors including financing. He stated that the City’s goal would be to have as much of the financing issue settled with investors and lenders as possible to make the project proceed smoothly. Ms. Laurence and Mr. Sullivan, responding to request for clarification from Mr. Pryor, restated that the timelines for the WG Development project had been revised from their initial proposals, but that they had been changed with input and discussion from the City so that both parties’ various needs could be addressed. MINUTES: Eugene City Council October 22, 2008 Page 5 Work Session