Item A: Downtown Update - East Broadway

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revenues. The bonds will most likely be 15 year bonds, but could go as long as the ending date of the district in 2024. The lender will probably require that the agency maintain a debt service reserve fund during the term of the bonds. Urban Renewal Cash Contribution: The Riverfront Urban Renewal District has several places where a cash contribution could be generated for the garage project. In the FY06 budget, $400,000 was allocated for purchase of the riparian area in connection with the sale of the EWEB property for a hospital. Because McKenzie- Willamette has chosen an alternate site, the funds allocated to the purchase of the riparian area on the EWEB site could be reprogrammed as part of the purchase of the parking spaces. In addition, there is estimated to be about $760,000 in unallocated funds in the FY06 budget, and an additional $350,000 is estimated to be available in FY07. The total estimated cash contribution from the Riverfront Urban Renewal District is $1,510,000. Stormwater Funds: The City would use approximately $250,000 in available balances in the Stormwater Fund to pay for rehabilitating of the storm water line that runs through the project boundaries. Library Debt Service Fund - Debt Service Reserve: There is currently about $475,000 in a debt service reserve in the Library Debt Service sub-fund. This is in addition to $2.5 million that is held in reserve in the Downtown Urban Renewal District's funds. Payments on the library obligations total about $2.5 million per year, and the payments will end with the final payment on 12/1/2009. Because the final payment date is drawing near, and because there is already a one-year reserve in the Urban Renewal Agency funds for this purpose, it would be reasonable for the City to use these funds to provide for debt issuance costs and a debt service reserve for a different financing need. Facility Reserve Fund: The City has been setting aside funds for renovation or re- placement of City Hall for several years. As a result, the current balance in the Facility Reserve is a little over $24 million. The City could use some of these funds to pay for a portion of the garage project. The Urban Renewal Agency would commit to reimbursing the City for this pay- ment over time, as funds are available in the district. The ability of the Urban Renewal Agency to repay the City will depend on future development. Although there is development interest within the district, there are no firm plans or proposals for additional development at this point. Therefore, it is not possible to accurately project a timeline for repayment of the advance from the City for this project. BHA has shown a concept for redeveloping the property that they own around the Eugene Hotel with expected new value of between $20 and $40 million. They have not indicated a timeline for that redevelopment. If that project was to occur, and using tax system assumptions for the current year, the incremental value for that project could be between $200,000 to $400,000 annuall y. The Agency also holds property totaling approximately 2.5 acres in the Courthouse district. Proceeds from the eventual sale of that property could be used to repay the City. However, it could take several years to accomplish the sale of City-owned property. LICMOl2006 Council AgendasIM060222IS060222A.doc