CC Minutes - 07/08/09 Work Session

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Mr. Zelenka wanted to emphasize that the council was at the start of a process. He stressed that it was not a "done deal" and the outcome would be a plan. He did agree that August was a bad time to conduct public involvement. He said if he were revising the plan, he would shift the public involvement out to September. He also wished to note that there was not a one -to -one relationship between school funding and urban renewal. He felt it was confusing to people to say this. Mr. Zelenka thought some of the projects were in the public's interest. He noted that the steam generation facility operated by the Eugene Water & Electric Board (EWEB) was slated to shut down within the next five years and downtown business owners needed to find another way to heat their buildings. He stated that this would be expensive and difficult and would have environmental consequences. He felt it would behoove them to ensure that it was done well. He had been impressed by the list of private businesses that had benefited from urban renewal monies, such as the Downtown Athletic Club and the U.S. Bank Building, among others. Mayor Piercy asked Mr. Sullivan to speak to the list of projects and the tax value they brought to the City. Mr. Sullivan responded that the list spoke for itself. He said the loan money had been used to improve the cultural value of the downtown as well as the tax value of the downtown. Ms. Taylor opined that the council should be provided a list of things urban renewal had "destroyed." She asserted that the tax revenue came to the City when the urban renewal district was terminated. Mr. Sullivan clarified that there was a continuous flow of tax revenue; the new value that had been achieved through urban renewal came onto the tax rolls when the district ended. Ms. Taylor ascertained that the downtown renewal district had been in existence since 1968. She thought if they had more money in the General Fund, the City could do other things. She thought the City could build a restroom downtown, which she felt was essential, using General Fund money. She did not feel that projects had to come from urban renewal. She asserted that urban renewal made it easier to spend the money without people being aware of it. She acknowledged that there was a limit on the expenditures. Ms. Taylor did not want to find projects that made people want to have an urban renewal district. She felt that if they had projects that needed to be done, they should then find out how to get the money for it. She noted that urban renewal was listed on property tax bills; people could see how much they were paying for it. In response to a question from Mr. Brown, Ms. Cutsogeorge clarified that the last year of the special levy for the library had been FY08 and it could not be revived. Mr. Brown suggested that the City extend the downtown zone to the PeaceHealth Clinic and "shave off' the University of Oregon portion. He understood that the University did not pay city taxes. Ms. Cutsogeorge confirmed that the Riverfront District can no longer be expanded and that state statutes did not allow the City to cut University property from the urban renewal district and other property. Mr. Brown asked if the City collected taxes from the Riverfront Research Park. Ms. Cutsogeorge replied that the City collected from the privately -owned land but not from the publicly -owned land. MINUTES— Eugene City Council July 8, 2009 Page 4 Work Session