Item B: Lane Community College Downtown Project

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The timing of the disposition of LCC’s existing Willamette Street property also has implications that impact the amount of project financing available for the new downtown campus project. LCC may need to capture the value of their existing Willamette Street property up front so that it can be contributed to the overall construction financing for the new project. LCC selling its property after it has been vacated does not provide an upfront source of funding for construction and creates uncertainty regarding the timing and amount of sale proceeds that can be generated in the future. Additionally, LCC has expressed concern regarding the Willamette Street property remaining vacant for a long period after they move out and believe that the URA would be more successful facilitating the reuse or redevelopment of the property. The outline of terms proposed for the purchase and sale agreement between the URA and LCC are th included in Attachment C. The basis for the proposed agreement includes selling the 10 & Charnelton th Street property to LCC at no cost. (The most recent appraisal of the 10 & Charnelton site indicated a value of $1.6 million) The URA would also commit to purchasing LCC’s Willamette Street property for the appraised value of $1.2 million, but only if the City Council amends the downtown urban renewal plan to increase the maximum indebtedness limit, and includes LCC as a project in that amendment. The agreement would require the $1.2 million to be used in the new downtown campus project. The $1.2 million cost of purchasing the LCC property will be deducted from the amount of URA financial assistance called for if the urban renewal plan is amended (i.e., if the plan amendment includes $8 million of assistance, then the URA’s actual financial contribution would be reduced to $6.8 million). The agreement would not include or imply a commitment of additional financial assistance beyond the property transactions. The agreement would allow LCC to occupy the Willamette Street building until the new project is complete. If LCC’s project does not move forward in a timely manner (generally based on the projected project timeline forecasted in LCC’s pending feasibility report), the URA would have the right to th repurchase the 10 & Charnelton property at no cost. In this scenario, the URA’s commitment to purchase the Willamette Street property would be removed. The agreement would also allow either party to void the agreement if an environmental investigation of the property is not satisfactory. RELATED CITY POLICIES The new LCC Downtown Center project addresses many goals for Eugene and downtown, including activity in the core, culture and education, employment and job training, and sustainability. This project is supported by the Downtown Plan; Downtown Code Amendments; West Broadway Advisory Committee Recommendations; Downtown Urban Renewal Plan; Central Area Transportation Study; Downtown Vision; City Council’s Downtown Collective Statements from August 2009; Downtown Policing Action Plan Team Short-Term Public Safety Strategy Recommendations 2004; Cultural Policy Review; Mayor’s 2004 Committee on Economic Development; Growth Management Policies; Sustainable Business Initiative; and JEO’s regional economic development principles. URA BOARD OPTIONS 1.Authorize the Agency Director to enter into a purchase and sale agreement with LCC consistent with the terms and conditions included in Attachment C.