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Councilor Clark stressed that he meant no disrespect to LCOG. He had received a number of comments from <br />constituents. He understood that LCOG had bought the building for $6 million, but could. have bought it for $3 <br />million a couple of years earlier and now wanted to make another $2 million in improvements to it. He was <br />challenged to guarantee the loan when it seemed "extravagant." <br />Councilor Zelenka asked Ms. Cutsogeorge to explain how spending the money would cause problems with <br />LCOG's auditor. Ms. Cutsogeorge responded that LCOG would receive an audit finding on their annual audit <br />report. <br />Bob Swank, Associate Director of LCOG, explained that the audit finding that LCOG could potentially face would <br />be that its reserves and its general fund had been reduced to possibly a negative or very low number. He <br />underscored that the loan guarantee was not for a loan to pay for extravagance and that it had come from the <br />economic climate; costs had gone up and LCOG had not been able to get a loan on its own. He stated that the <br />reason LCOG needed to retain its general fund reserves was that it used those funds to make matching, funds for <br />"all kinds of grants, many of which would potentially relate to the City of Eugene." <br />Roll Call vote; the vote was a tie, 4:4; councilors Poling, Ortiz, Pryor, and Zelenka voting in favor <br />and councilors Brown, Taylor, Clark, and Solomon voting in opposition. Mayor Piercy voted in <br />favor of the resolution and it passed. <br />The meeting adjourned at 8:26 p.m. <br />Respectfully submitted, <br />Jon Ruiz <br />l C- <br />City Manager <br />(Recorded by Rath Atcherson) <br />MINUTES Eugene City Council May 11, 2009 Page 7 <br />Regular Meeting <br />