Item 2A - Approval of Minutes - Laserfiche WebLink

Home Browse Search

B. WORK SESSION: Review and Approval of Sale Terms for the Oregon Research Institute-Sears Building Mr. Taylor asked Denny Braud of the Planning and Development Department's Development Division to speak to the council on the deal points and negotiations for the sale of the Sears property to the Oregon Research Institute (ORI). Mr. Braud explained that a summary of the final terms and conditions were included in the agenda packet. He said the selection and recommendation of the ORI project was based on some significant contributions that the project made to the downtown area. He stated that the project was a ;;rare combination" of desirable dense downtown development, quality jobs, and sustainable development. He suggested the council look back on the original purchase of the property in 1993 and consider the return on the investment. He noted the acquisition included the quarter block where the Sears building was and the half block on which the new library was built. The property had been purchased for approximately $900,000, the current value of the land alone was $1.5 million, and the City had realized two new developments: the library and the potential development of a new ORI building. Kelly Saito, Gerding-Eadland Development Company, explained that his company was a private develop- ment company that specialized in mixed-use urban development. He listed some of the projects of this sort with which the company had been involved. He called the proposed development for ORI a unique opportunity for the City and predicted it would bring 300 high-paying jobs into the downtown area. Henry Fitzgibbons of Soderstrom Architects, PC, provided a PowerPoint presentation on the proposed preliminary design for the ORI building. He stressed that ORI specifically chose the downtown area because it believed it would provide a positive impact to area. He said the proximity to the Lane Transit District (LTD) was beneficial to the people who act as human subjects for the research conducted by ORI. He stated that the intention was to build an ;;elite gold" or ;;platinum" building and to incorporate green building elements in the construction. Mr. Pap6 indicated that he had a potential conflict of interest as his son worked for Gerding-Easland Development Company, though not on this specific project. Ms. Bettman, seconded by Mr. Poling, moved to authorize the Agency Di- rector to (1) sell the Sears building property to the Oregon Research Insti- tute at a purchase price of $400,000, less the cost of any environmental as- sessment, up to $35,000, and (2) direct the Agency Director to bring back to the agency for the June 28 meeting a Supplemental Budget #3 item to in- clude authorization for the demolition and other costs anticipated by the Summary of Terms attached to the AlS. Ms. Bettman voiced her support for the motion. She commented that, in the past, there had been incidences wherein the City had worked with a private entity and ended up with the %hort end of the stick." She asked if there was a possibility that the project could fall through after the building was demolished and before the next building was constructed. Mr. Braud reassured the council that there was a penalty should the contract fall through such that ORI would be required to reimburse all costs. MINUTES--Eugene City Council June 23, 2004 Page 5 Work Session