CC Minutes - 02/08/06 Work Session

Home Browse Search

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. th Ms. Laurence shared slides of 8 Avenue, reminding the council it was a designated “Great Street” where people would want to be. The City was implementing the Downtown Plan on a project-by-project basis. She said the Whole Foods project was consistent with the vision and policies outlined in the Downtown Plan. Ms. Laurence noted the action requested of the council, which was to direct the City Manager to negotiate a land transaction agreement, a development agreement and related legal documents, and to bring all the aforementioned documents to the council for final approval. Mayor Piercy called for council questions and comments. Mr. Kelly thought the project was exciting and wanted it to happen. He thought a parking garage would benefit The Shedd’s continued growth as well. He said the store could be built as an outright use on the site in question; the question before the council today was the degree of City participation in the project. Mr. Kelly suggested another work session be scheduled, given the complexity of the topic. Mr. Kelly suggested the City needed to get out in front of the issue of downtown green space. He overviewed a proposal for a “green ribbon” connecting the Park Blocks downtown to the river. That proposal would require subgrade parking on the site. Ms. Laurence said staff discussed an enhanced th sidewalk along 8 Avenue using existing right-of-way to create a green walk. Mr. Kelly wanted more council discussion of the subject. MINUTES—Eugene City Council February 8, 2006 Page 5 Work Session