Item 6: Resolution 5017 Authorizing Economic Development Project Revenue Bonds as Recovery Zone Facility Bonds

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: Resolution 5017 Authorizing Economic Development Project Revenue Bonds as Recovery Zone Facility Bonds to Finance Improvements on the Vacant Parcel Located at Broadway and Willamette Street and adjacent to the Centre Court Building Meeting Date: December 13, 2010 Agenda Item Number: 6 Department: Central Services Staff Contact: Sue Cutsogeorge www.eugene-or.gov Contact Telephone Number: 541-682-5589 ISSUE STATEMENT The council is being asked to approve a resolution necessary for issuance of Recovery Zone Facility Bonds for the proposed redevelopment of the vacant parcel located at Broadway and Willamette streets and adjacent to the Centre Court building. In addition, the council is also being asked to approve updated terms for the redevelopment proposal. BACKGROUND At the August 11, 2010, work session, the council supported a redevelopment proposal by Bennett Management Company (BMC) in concept and directed the City Manager to bring back additional project details for consideration. At the September 15, 2010, meeting, the council took action to approve BMC’s redevelopment of the vacant parcel, authorized the City Manager to enter into agreements consistent with the terms included in Attachment A, and passed Resolution 5014 to give preliminary approval for issuance of Recovery Zone Facility Bonds for the project. Also at that meeting, the Urban Renewal Agency Board approved the ownership transfer for the vacant parcel from Beam to BMC or related legal entity, and authorized the Agency Director to enter into the agreements necessary to allow the property transfer and the transfer of Beam’s development rights to BMC. Redevelopment Project Terms: Since the meeting in September, progress has been made on the project. As a reminder, the project includes construction of a 50,000 square-foot mixed-use building with ground floor retail and four floors of commercial office space. Onsite parking will be embedded with underground parking being considered based on final construction costs. The total project cost, including land, is estimated at $11 million. A conceptual design from project architects Ankrom Moisan was provided to the council at the meeting on September 15. BMC has created Woolworth Properties LLC to own the project. An outline of terms was also provided to the council in September. The terms were based on a preliminary offer of financing from Wells Fargo Bank that did not materialize. BMC has subsequently received approval of financing for the project from Siuslaw Valley Bank. The approved financing requires the terms of the agreement between the City and BMC/Woolworth Properties LLC to be amended. An updated outline of terms is included in Attachment A. L:\CMO\2010 Council Agendas\M101213\S1012136 - and attA.doc