Item C: URA Action on East Broadway Motions

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ATTACHMENT A Intergovernmental Agreement The following is a general outline of terms for an Intergovernmental Agreement between the City of Eugene (the City) and the Urban Renewal Agency (URA) for participation in the East Broadway Development Projects. The terms and conditions contained herein are intended to be for discussion purposes and do not represent the final terms for this Intergovernmental Agreement. Based on Council and URA action, the final terms will be in substantial conformity with this outline. Purchase of Parking Garage City is purchasing a parking garage from a developer that will be constructed mainly on City- ? owned property. Because the project is located in the Riverfront Urban Renewal District, the URA/Riverfront ? District is responsible for paying for as much of the project cost as possible. Payment for this project will be made from: ? URA/Riverfront District: all unobligated funds available in FY06 and FY07, funds that o were programmed for purchase of the riparian area on the EWEB site, and proceeds from the sale of urban renewal revenue bonds. City: stormwater funds for rehabilitation the storm line, Library Debt Fund reserves to o fund new debt service reserve and costs of debt issuance, and the Facility Reserve. If the City Council authorizes an alternative financing strategy, the City would enter into a HUD ? Section 108 Loan, in connection with BEDI grant funds for this project. In this event, the URA/Riverfront District would not issue urban renewal revenue bonds. The URA/Riverfront District would instead be responsible for making annual payments to the City equal to the debt service on the HUD Section 108 Loan. Reimbursement to City for Funds Advanced for Garage Purchase The City contribution in the form of a Facility Reserve payment or BEDI grant funds shall be ? reimbursed by the URA/Riverfront to the extent possible, under the following terms: No interest will be due to the City from the URA/Riverfront District for the City’s up- o front cash contribution to this project. Each year after the audit is completed, the URA/Riverfront District will pay the City a o minimum of 1/2 of any excess of current year revenues over current year expenses in the just completed fiscal year for the combined URA/Riverfront District funds. Prior to the URA/Riverfront entering into any additional loans or debt, the o URA/Riverfront District will determine a fixed reimbursement schedule to ensure that the City will be fully reimbursed for its Facility Reserve or BEDI grant contribution to the garage project, and will include that fixed reimbursement schedule into the cash flows to determine future borrowing capacity. Other Terms If any urban renewal bond documents conflict with the terms of this IGA, then the terms of the ? bond documents will take priority over the IGA terms. L:\CMO\2006 Council Agendas\M060315\S060315C.doc