Item B: Next Steps on Facility Reserve

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story building with 70-75 secure covered parking spaces below and over 250 on-grade parking spaces, situated on a four-acre site. The property meets current space and parking requirements for all police functions currently housed at City Hall and has future expansion capabilities that would allow at least a doubling of current building area under existing planning and zoning regulations. A recent seismic analysis determined that the building can be upgraded to meet essential facility seismic requirements for approximately $500,000 in total project costs. In addition, the building has a largely open floor plan making it relatively easy to remodel for use as a police facility. Acquisition of the property plus remodeling and seismic upgrades to meet police requirements is estimated to not exceed $16 million in total costs. Lane County tax records for the two tax lots that comprise this property list the Real Market Value at $10.1 million. Sales of comparable buildings in the area indicate that this may be a reasonable approximation of the property’s value, though no recent appraisals have been completed. It is well known that many areas of Eugene are within the 100-year flood plain of the Willamette River. For example the Downtown Fire Station, wastewater treatment plant, and EWEB Administration Building, all critical and essential community services, are within the flood plain boundary. To mitigate the potential impact of a flood, the first floor level of each was constructed at least one foot above the flood plain. The 300 Country Club Road site is also located within the northern boundary of the flood plain for Willamette River. This building was also designed so the first floor level is one foot above the flood plain. The only area that would be affected as a result of a 100-year flood event is parking. A contingency plan would be developed to assure the continuation of police services in such an event. Since construction of the building in 1982, the Country Club Road site has never flooded including in 1996 when the Willamette and McKenzie Rivers experienced some of their worst flooding in decades. One potential concern is that moving the police headquarters to Country Club Road might reduce police coverage downtown. Although 300 Country Club Road is not immediately downtown, it is just minutes away by car or bike via the Ferry Street Bridge. A prominent downtown police presence would continue to be maintained via an enhanced Downtown Public Safety Station as well as regular patrols. The Downtown Public Safety Station could incorporate bicycle officers, downtown guides, community service officers, and other functions to provide front counter services and community outreach efforts. Also, it is important to note that the Country Club Road building is the right size to meet the Police Department’s current space needs. When additional space is needed in 10 – 15 years, this could be accomplished by adding a smaller precinct building on the south side of the river in or near downtown. During the April 22 work session, the council directed the City Manager to bring back to council the costs and necessary steps to secure an option on the Country Club building to ensure a good price on that building now as we discuss its potential as a patrol building. The following steps to determine the cost and options available to secure a purchase option for the 300 Country Club Road site are: 1. Initiate conversation with the property owner to inform them the council has approved the City pursuing the purchase of the building upon completion of an appraisal of the property. 2. Obtain agreement with the property owner that they will not enter into negotiations with anyone else to lease or sell until after the City has time to complete an appraisal and has tried and failed to negotiate a purchase and sale agreement. At the work session, staff will update the council on the status of conversations related to securing an exclusive right to purchase. 3. Complete appraisal process to determine fair market value. 4. Upon completion of appraisal finalize the terms of the purchase and sale agreement with the property owner before returning to council for final approval.