Item 3C: Resolution Concerning Loan Guarantee Assistance

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FINANCIAL AND/OR RESOURCE CONSIDERATIONS Funds borrowed under the Section 108 program require the City’s security pledge of future CDBG allocations. However, it is anticipated that the repayment of Section 108 funds would be supported by project-specific cash flow and collateral. Additional collateral pledges could include tax-increment revenue generated within the Downtown and Riverfront urban renewal districts. The Brownfield Grant is also intended to offset the risk of using Section 108 by utilizing the grant funds to over-collateralize a project via loan loss reserves or direct lending of the grant funds. Although future CDBG allocations could be called upon to repay Section 108 borrowings, the City would not anticipate utilizing future CDBG allocations as a source of repayment given the capacity of the City’s urban renewal resources to supplement project-specific cash flow and collateral, and the availability of the Brownfield Grant funds. The loans would not be secured by the City’s general fund or any other general resources. TIMING The Brownfield Grant award requires the submission of the proposed Section 108 application no later than March 31, 2006. The Brownfield Grant must be used within three years of the award. RELATED CITY POLICIES The proposed project is consistent with the policies and implementation strategies included in the Eugene Downtown Plan, including: Downtown development shall support the urban qualities of density, vitality, livability and diversity ? to create a downtown, urban environment. Actively pursue public/private development opportunities to achieve the vision for an active, vital, ? growing downtown. Use downtown development tools and incentives to encourage development that provides character ? and density downtown. Promote multi-story, mixed-use structures downtown through financial incentives or code amendments. ? In addition, the proposed project is responsive to the following Growth Management objectives: Policy 1: Support the existing Eugene Urban Growth Boundary by taking actions to increase density and use existing vacant land and under-used land within the boundary more efficiently. Policy 2: Encourage in-fill, mixed-use, redevelopment, and higher density development. Policy 3: Encourage a mix of business and residential uses downtown using incentives and zoning. Policy 4: Improve the appearance of buildings and landscapes. Policy 10: Encourage the creation of transportation-efficient land use patterns and implementation of nodal development concepts. Policy 14: Development shall be required to pay the full cost of extending infrastructure and services, except that the City will examine ways to subsidize the costs of providing infrastructure or offer other incentives that support higher-density infill, mixed use, and redevelopment. Policy 16: Focus efforts to diversify the local economy and provide family-wage jobs principally by supporting local and environmentally-sensitive businesses. Direct available financial and regulatory incentives to support these efforts L:\CMO\2006 Council Agendas\M060313\S0603133C.doc