Item 2A: Approval of City Council Minutes

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Ms. Ortiz remarked that the City would not give LCC more than it needed to complete its project. She stressed the importance of having a VA clinic in Eugene and said the City should do everything it could to encourage the selection of the downtown site. She said many in the homeless population were veterans and could benefit from the services a clinic would offer. Ms. Piercy said there was no perfect funding mechanism for the projects, but the recommendation would address many of the council’s priorities. She said supporting a VA clinic as part of the package sent a strong message about the community’s interest in helping returning veterans. Mr. Clark, seconded by Ms. Taylor, moved to forward to the Planning Commission and overlapping taxing districts the proposed amendments to the Downtown Urban Renewal Plan, consistent with the draft plan and report included in Attachments K and L. Mr. Clark said he was not a fan of tax increment financing, but acknowledged that it was a legitimate tool for increasing property value. He said the tool had been used for some private development, but when it was used for public development it did not increase property values in the downtown area, which could harm other jurisdictions. He did not want to let his ideological opinion stand in the way of a pragmatic approach to making downtown more vibrant. He felt the cost of using existing resources was too high and was willing to move forward with the urban renewal option in order to achieve many benefits to downtown and the community. Ms. Taylor remarked that urban renewal was never intended to continue forever and the County desperately needed money. She said location of a VA clinic downtown was between the federal government and PeaceHealth. She agreed that assistance should be provided to LCC. Ms. Taylor, seconded by Mr. Brown, moved to substitute the following motion: “I move that the City Manager prepare and return to the council with a plan to sup- th port LCC’s 10 and Charnelton project in the amount of $8.2 million ($8 million plus $200,000 bond issuance and transaction costs) using the $2.4 million that would be available after terminating tax increment financing; the $1.9 million bal- ance in the downtown loan fund; and a $3.9 million bond paid from the additional $810,000 in property tax dollars that will come to the City’s general fund if tax in- crement ceases. In addition, the manager shall consider other sources of funds in lieu of part of the $3.9 million bond.” Ms. Taylor said the option she proposed would not leave LCC in suspense about the City’s support. Mr. Brown pointed out that the funding option in Ms. Taylor’s motion did not require reprogramming any General Fund resources. He said there were other viable funding options that did not include continuation of the urban renewal district. He said future councils and staff could decide to extend the district beyond 2019 and it was time to let it go. The motion to substitute failed, 2:6; Ms. Taylor and Mr. Brown voting yes. MINUTES—Eugene City Council March 8, 2010 Page 4 Work Session