Item 3D: Adoption of Resolution on 108 Funds for Construction Funding

Home Browse Search

ATTACHMENT B Individual Project #2 Application for HUD Section 108 City of Eugene, Oregon, Funds to Rehabilitate Centre Court Building DRAFT for Review: December 4, 2009 (revised December 21, 2009) Background The City received approval from the Portland field office for its first individual Section 108 loan for the acquisition of downtown property in August 2007. The individual project application was revised in March 2008 and approved by the Portland field office in June 2008 (Loan #1). The City utilized a combination of federal and local funds for the first step in the redevelopment of properties at the heart of downtown. The City has an agreement with Beam Development, who has since purchased two properties from the City, to redevelop the important intersection of Willamette and Broadway into a vital area with restaurants, retailers, and office space. The national objective for the first individual Section 108 project was the elimination of slums and blight. The Individual Project #2 Application is to provide construction financing to Beam for the rehabilitation of the Centre Court building. The City has worked with Beam since May 2007 and formalized a partnership with a Purchase and Sale Agreement in May 2008. The City purchased the property with BEDI/108 funds and subsequently sold it to Beam in July 2008. Based on the Purchase and Sale Agreement, Beam is committed to the rehabilitation of the existing five-story, vacant building located at the southwest corner of Broadway and Willamette Street. See Property Location Map, Exhibit B. 1. Project Description The City of Eugene proposes to utilize a combination of federal and local funds to assist the redevelopment of the Centre Court building. The City of Eugene seeks to provide construction financing to Beam ($5,189,000 from Section 108 and $1,315,000 from BEDI). Rehabilitation of the Centre Court building will contribute approximately 60,000 gross square feet. Net square feet assumptions are 10,000 square feet of retail and 43,000 square feet of office space. 2. Sources & Uses: Preliminary Development Financing Plan SOURCES OF FUNDS Private Investment $ 735,000 BEDI Grant $1,315,000 Section 108 Loan (#2) $5,189,000 Urban Renewal Cash $ 65,000 DLRP funds $ 350,000 TOTAL SOURCES $7,654,000 USES OF FUNDS Hard Costs $6,064,000 Soft Costs $1,300,000 Financing $ 290,000 TOTAL USES $7,654,000 1