Item 2: Adoption of Resolution 5017Authorizing Economic Development Project Revenue Bonds as Recovery Zone Facility Bonds to Finance Improvements and att A

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the new building.) The increase in guaranteed square footage is needed for the developer to close the bank loan prior to the December 31 deadline for issuing the Recovery Zone bonds. The City’s lease guarantee will be reduced as sufficient private lease commitments are achieved. Recovery Zone Facility Bonds: The American Reinvestment and Recovery Act (“ARRA”) permits issuance of the Recovery Zone Facility Bonds. ARRA and Section 147 of the Internal Revenue Code of 1986, as amended require that recovery zone facility bonds be approved by the council after a public hearing. Notice of the hearing was published in the Register-Guard on November 1. A public hearing was held at 11:00 am on November 15, 2010, before a hearings official to receive comments on the proposed issuance by the City of not more than eight million dollars of recovery zone facility bonds to finance an approximately 50,000 square-foot mixed-use building that will be constructed on the former site of the Woolworth building at Broadway and Willamette Streets and will be owned by Woolworth Properties, LLC. No one appeared to testify at the hearing. Resolution 5014 requires that the council give final approval to the sale of bonds for the project prior to the sale of the bonds. The resolution included in Attachment B provides for that final approval. RELATED CITY POLICIES Development of the vacant parcel addresses many goals for Eugene and downtown, including activity in the core, employment, and sustainability. This project is supported by the Downtown Plan; Down- town Code Amendments; West Broadway Advisory Committee Recommendations; 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. The City’s debt policies set out provisions for the use of conduit financing, which is what BMC/Wool- worth Properties LLC has requested for this project. Under those policies, a project has to meet certain criteria, including that the City not incur any moral or financial obligation from the borrowing, and that the private party requesting the financing pays all of the costs of the borrowing. The project financing will comply with the debt policies related to conduit financings except for the rating or credit enhancement requirement. Because the project will be financed through a bank private placement loan rather than a public bond sale, this policy requirement is not needed. Council waived that part of the policy in Resolution 5014. COUNCIL OPTIONS 1.Approve the revised outline of terms included in Attachment A, and approve the resolution authorizing issuance of the bonds included in Attachment B. 2.Do not approve the actions needed to go forward with the BMC/Woolworth Properties LLC redevelopment proposal. CITY MANAGER’S RECOMMENDATION The City Manager recommends approval of the revised outline of terms for the redevelopment proposal included in Attachment A and approval of the resolution authorizing issuance of the bonds included in Attachment B. Z:\CMO\2010 Council Agendas\M101122\S1011222andattA.doc