Item 2A: Approval of City Council Minutes

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Mr. Poling thanked the committee members and asked them to keep up the good work. He acknowledged the County’s pledge of Room Tax dollars to support the event and noted the fact the City would also be asked to make a financial contribution. He asked the City Manager to propose funds in the upcoming budget for fiscal year 2007 to support the event. Mayor Piercy thanked the presenters again. B. WORK SESSION: East Broadway Development Update The council was joined for the item by Nan Laurence of the Planning Division, Sue Cutsogeorge of Financial Services, and Mike Sullivan of Development Services. Planning and Development Director Susan Muir was also present. Ms. Laurence shared a PowerPoint presentation on the East Broadway Development Project proposal that highlighted the project’s consistency with adopted policies, identified the parties to the project (Gerding/Edlen Developers, Whole Foods, the City, The Shedd, and Oregon Central Credit Union), outlined the current and projected site ownerships, and illustrated the proposed land transaction. The presentation further identified the need for parking in the area and highlighted the elements of the proposed public parking garage associated with the project to meet that demand and to encourage further private develop- ment in the area. The construction of the public parking garage was a condition of the agreement between the developer and Whole Foods. The developer was committed to building the parking facility for a fixed dollar amount. Ms. Laurence noted the options for the parking garage prepared for the council’s consideration, and recommended Option 4, a larger garage with added commercial spaces. Ms. Cutsogeorge reviewed the projected costs of the four options outlined by staff. She said staff identified a funding strategy for Option 4 that allowed for the City’s participation if the council chose to move forward. Because the project was in the Riverfront Urban Renewal District, the majority of costs would be borne by the district, with the remainder to be made up from other City sources. She confirmed that the project qualified for district funding. There were two main funding sources in the district: 1) borrowing, which would be backed by urban renewal revenues; and 2) the cash on hand at the time the purchase was made. Ms. Cutsogeorge said the benefit of the strategy was that it took advantage of the tax revenues generated by the private development on the site to pay for a portion of the garage costs over time. Those dollars would not be available if the project did not occur. Borrowing would require all projected and existing increment but would leave sufficient money to operate the district. Because McKenzie-Willamette Medical Clinic chose an alternative site, the dollars the council set aside for the purchase of the riparian area at the Eugene Water & Electric Board site could be used for the garage project. The total urban renewal contribution would be $5.5 million. Ms. Cutsogeorge identified the three sources of City funding: 1) Stormwater Fund, 2) Library Debt Service Fund, and 3) Facilities Reserve. The district would reimburse the City over time, contingent on the development that occurred, the sale of properties owned by the district, or an increase in property values in the district. The total City contribution was $2.5 million. Ms. Cutsogeorge indicated that staff would review the cash situation and bonding capacity as the purchase date neared and return to the council with any adjustment in the strategy. She said staff was also examining an alternative financing strategy that involved the use of a $2 million grant the City recently received from the Housing and Urban Development Department to mitigate brownfield conditions. MINUTES—Eugene City Council February 8, 2006 Page 4 Work Session