Item 2D: Adoption of Resolution 5035 Authorizing Transfer of Energy Bonds for LCC

Home Browse Search

CE ITY OF UGENE AIS GENDA TEM UMMARY Adoption of Resolution 5035 Authorizing Suballocation or Transfer of Qualified Energy Conservation Bonds for Lane Community College Meeting Date: June 27, 2011 Agenda Item Number: 2D Department: Central Services Staff Contact: Sue Cutsogeorge www.eugene-or.gov Contact Telephone Number: 541-682-5589 ISSUE STATEMENT The council will consider a resolution that would allow the City to transfer or suballocate its share of federal Qualified Energy Conservation Bonds (“QECBs”) to Lane Community College for its Downtown Campus project. BACKGROUND th The new Downtown Campus for Lane Community College (LCC), to be located at 10 and Charnelton, will include a 90,000 square foot, $35 million education building and a $20 million, 75,000 square foot student housing facility. The LEED Platinum education building is intended to both demonstrate and teach sustainable building strategies. It will house approximately 30 ‐‐ stateof-theart classrooms and lecture halls that will increase the number of students served downtown. The City and Eugene’s Urban Renewal Agency (URA) are supporting the project in several ways. On May 24, 2010, the council approved an amendment to the Downtown Urban Renewal Plan with support for the project. The amended plan included an $8 million grant to LCC for the project. In addition to the grant, the URA also donated the land at 10th Avenue and Olive Street valued at $1.6 million. The City also approved the transfer of a Recovery Zone Bond allocation to LCC in order to help the college access a $7,839,000 lower cost bond that will go toward the housing portion of the project. The federal government has enacted programs that authorize the issuance of Qualified Energy Conservation Bonds that may be used by state, local and tribal governments to finance certain types of energy projects. These bonds are limited and must be issued under a volume cap allocation from the federal government. The City of Eugene has been allocated approximately $1.5 million of the QECB volume cap. QECBs are interest subsidy bonds that can be issued to finance energy efficiency capital expenditures in public buildings; renewable energy facilities; green community programs; renewable energy production; various research and development applications; mass commuting facilities; several types of energy related demonstration projects; and public energy efficiency education campaigns. No such bonds have been issued in Oregon to date in part because it can be difficult to develop qualifying projects, and because it may not make sense to issue bonds for \\Cesrv500\cc support\CMO\2011 Council Agendas\M110627\S1106272D.doc