CC Minutes - 05/26/09 Meeting - Laserfiche WebLink

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Councilor Clark recalled that he had been concerned about the City guaranteeing the space as a renter. He averred that this situation was different, one that he could support. He believed locating the LCC downtown center in the building would be a “fantastic idea.” Councilor Taylor commented that she had been disappointed to hear about the situation from the newspaper. She thought having LCC locate in the building would be “great.” She had some concern that the amount of money would not be enough, averring that “$9 million is nothing.” In response to a question from Councilor Taylor, Mr. Braud clarified that the City wanted to have a little bit of flexibility in order to reduce its commitment from the original 50,000 square-foot amount. He said it was a good time to rethink this commitment now that the PSA was open and the City was renegotiating. Councilor Taylor asked how much space the City was currently renting in the downtown area. City Manager Jon Ruiz replied that he did not know, but he would find out from Facility Division Manager Mike Penwell, He added that he was not certain space taken in the Beam project would come from currently leased space. Councilor Taylor asked if the City was delaying the project by negotiating with LCC. Mr. Braud assured her that the City was not. He explained that Beam Development had to attract a high percentage of pre- lease commitments in order to start, which was challenging in the present economy. He said lenders would require 80 to 100 percent building occupancy before financing the project, a big change from the previous year. Mr. Ruiz thought if the City could “work a deal” with LCC, it could accelerate the process. Councilor Taylor asked if staff was confident that LCC could raise the money. Mr. Braud replied that this was something LCC had to make progress on. He said the college still had some work to do and needed to accelerate the project in order to attract funding sources, such as stimulus money which was contingent on being shovel ready. Councilor Zelenka understood the current economic influences on the project. He liked the idea of having LCC downtown. He said Beam Development had been looking all over town for tenants. He felt that the project could jumpstart the downtown area. Mayor Piercy expressed appreciation to staff for its “hard and inventive work” to keep the project moving forward. She also appreciated Beam Development’s commitment to the community. She stressed that the situation was not one of someone “dragging their feet.” She also wanted to convey her appreciation to LCC for taking an interest in the project. She hoped the economy would improve soon, and underscored that the lack of development was not due to a lack of interest. Councilor Solomon asked if LCC wanted to take over the entire development. Mr. Braud replied that LCC was looking for 80,000 square feet and the Centre Court Building was not that large. In response to a follow-up question from Councilor Solomon, Mr. Braud stated that ownership was critical to LCC because of bond funding requirements. Councilor Solomon asked if it “all fell apart” would the City lose money. Mr. Braud responded that the City would not lose money, but Beam had a financial stake in it because of carrying costs. He said the City was able to service its Department of Housing and Urban Development (HUD) loan with Beam’s payments. MINUTES—Eugene City Council May 26, 2009 Page 11 Regular Meeting