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

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the small amount of allocation that each jurisdiction has been granted. The City of Eugene does not currently have any projects that would qualify for or make sense to finance using QECBs. As part of the Governor’s Cool Schools Initiative, the Oregon Department of Energy (ODOE) has requested that jurisdictions not utilizing their allocation transfer their unused QECB allocation back to the State. The State is aggregating these unused allocations to issue the bonds as the source capital for a Cool Schools Initiative loan program operated under ODOE’s Small Energy Loan Program. The resulting financial product would be a low interest loan with a maximum 15-year term. ODOE’s initial list in March 2011, of potential K-12 school projects that would receive assistance under the Cool Schools program did not include any schools in Eugene. Given this, staff worked with local schools and LCC to determine if there would be a use for the City’s allocation locally rather than giving up this allocation to the state-wide effort. From these discussions with Eugene and Bethel School Districts, as well as LCC staff, it became clear that the LCC Downtown Campus project would be the most viable use of Eugene’s allocation given the project financial gap that exists for high efficiency and renewable energy elements, LCC’s proposed uses meet the bond program requirements, and LCC expressed the greatest interest in issuing the bonds given their current bond activity. On June 14, the LCC Board approved a resolution requesting that the City consider transferring its allocation for use in the Downtown Campus project. The LCC resolution is included as Attachment A. The City resolution included as Attachment B would allow the City to transfer its QECB allocation to LCC to lower the cost of borrowing for some of the sustainable building strategies included in the project. Specific elements that would qualify for use of these bonds are the solar and geothermal energy systems to be included in the project. There are many other elements of the project that include energy conservation elements, and those may also qualify for use of QECBs if the solar and geothermal systems are deemed not eligible for some reason. The use of QECBs would allow LCC to borrow funds at a lower cost than would otherwise be available for financing and further assist LCC in successfully completing this highly important downtown development project. RELATED CITY POLICIES Downtown revitalization and the projects referenced in this material are supported by the Downtown Plan, the council’s 2009 Vision and Goals, and a number of plans and reports related to downtown. \\Cesrv500\cc support\CMO\2011 Council Agendas\M110627\S1106272D.doc