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the EURA's approval of the staff recommended motion would direct the City Manager to negotiate the property <br />transaction agreement although the City Manager could not actually execute the purchase without the approval <br />of a supplemental budget by the EURA. Mr. Klein further noted that the actual property transaction agreements <br />would contain a provision that the City had no obligation to purchase the Willamette Street property unless the <br />EURA approved the supplemental budget <br />Mr. Zelenka maintained that in essentially providing LCC with $8 million worth of funding assistance for their <br />downtown development project he would rather that the City come out of the process with a useable or saleable <br />property as opposed to nothing at all. He noted that he would rather have the City acquire the building and sell <br />it to a private developer for almost nothing rather than have the property remain with LCC where it would <br />continue to function as a non - taxable property. <br />Mr. Pryor sensed a certain amount of nervousness from those present regarding the potential sale and acquisition <br />of LCC's current downtown facility on Willamette Street. He suggested that the council might split the staff - <br />recommended motion so that the two elements of the City's sale of the 14th and Charnelton site and the purchase <br />of the Willamette Street property might be voted upon separately. <br />Mr. Pryor believed it was important to pass the first part of the staff - recommended motion in order to provide <br />LCC with the site control it needed in order to proceed with the next phases of the development project. <br />Mr. Braud, responding to a question from Ms. Piercy, clarified that the LCC was primarily seeking site control <br />of the 10th and Charnelton site and a level of certainty regarding the future of the Willamette Street property <br />that would allow LCC to move forward with its development plans. <br />Mr. Braud noted that several of Mr. Brown's concerns regarding the real value of the Willamette Street property <br />had also been voiced by members of the LCC Board. <br />Ms. Piercy noted her confusion regarding the potential sale of the Willamette Street property since the City of <br />Eugene had already indicated a willingness to provide the $8 million in funding assistance that LCC needed to <br />move forward. <br />Mr. Ruiz responded to Ms. Piercy's confusion and agreed that the City generally did not want to be in the <br />property development business in the downtown area as part of its urban renewal strategies. Mr. Ruiz <br />maintained that the City of Eugene ultimately had a greater ability to carry the Willamette Street property asset <br />for a longer period of time and with less adverse financial effect than LCC. <br />Mr. Braud, responding to a question from Mr. Brown, noted that if the City did indeed purchase the Willamette <br />Street property, LCC would remain in the building at no cost through the construction of the 14th and <br />Charnelton facility, but would also continue to pay the utility and operating costs for the building for as long as <br />they occupied it. Mr. Braud further noted that the specific terms of LCC's continued occupation of the <br />Willamette Street property remained to be negotiated. <br />Mr. Brown believed that the City's acquisition of the Willamette Street property and LCC's occupancy plans <br />were a "terrible idea" and an improper use of urban renewal funds. <br />Mr. Poling joined the meeting at 12:59 p.m. <br />Mr. Ruiz believed that LCC would not proceed without the City's purchase of their Willamette Street property <br />MINUTES Eugene City Council March 14, 2010 Page 7 <br />Work Session <br />