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<br />Ms. Bettman said that the crux of the issue for her was that the City never had the money to do the things <br />she believed would be good for the city or to fund solutions to chronic problems, such as homelessness and <br />the need for youth services. However, “all of a sudden” the City had the money for this project. She said in <br />order to fund the garage the council was taking money from the Library Fund, General Fund, and Stormwa- <br />ter Fund, and was eliminating the reserves it had to create a riparian strip in downtown. Ms. Bettman <br />predicted the council would face a backlash from the public which, for the next ten years, would vote down <br />any bond measure the council put forward. <br /> <br />Assistant City Manager Carlson clarified that the current proposal in the motion did not include the use of <br />the BEDI grant or the Section 180 loan that would be backed by CDBG dollars. The current proposal used <br />other sources, primarily urban renewal funds, both existing and those expected to be generated by the <br />development. Ms. Bettman maintained that there was a proposal in the AIS for the use of the funds. <br />Assistant City Manager Carlson said that staff would have to return for separate council authorization for <br />the use of those funds. <br /> <br />Mr. Kelly responded to the statements made by Ms. Bettman. He said nothing in the proposal employed <br />BEDI grant dollars or Section 108 funding. Assistant City Manager Carlson concurred. Mr. Kelly <br />confirmed with Assistant City Manager Carlson that the council would have to approve the use of those <br />funds on a project-by-project basis. <br /> <br />Mr. Kelly recalled that the council and Council Committee on Intergovernmental Relations, of which Ms. <br />Bettman was a member, previously passed the application for the grant and Section 108 funds. <br /> <br />Mr. Kelly clarified that the CDBG funds were not the source for the Section 108 loans, merely one of the <br />sources of security for such loans. Assistant City Manager Carlson concurred. He said the loan was <br />ultimately backed by CDBG money, but there was no intent to ever use CDBG moneys to actually pay back <br />the Section 108 loans. <br /> <br />Mr. Kelly said if the council heard a proposal for the use of the BEDI grant or Section 108 funds, he would <br />expect to see how those would be covered by something other than CDBG money. Assistant City Manager <br />Carlson agreed that would be the case. <br /> <br />Ms. Taylor was not reassured that authorization for the funds would come back to the council because then <br />it would be too committed to the project to stop it in the future. She said “it was just playing with words.” <br /> <br /> The motion passed, 5:2; Ms. Taylor and Ms. Bettman voting no. <br /> <br />Mayor Piercy closed the meeting of the Eugene City Council and convened a meeting of the Urban Renewal <br />Agency. <br /> <br /> <br />C. ACTION: Downtown Update—East Broadway Development Projects <br /> <br />Ms. Solomon, seconded by Ms. Ortiz, moved to direct the Agency Director to enter into an <br />intergovernmental agreement between the City of Eugene and the Urban Renewal Agency in <br />substantial conformity with the outline of terms described in Attachment A, Intergovern- <br />mental Agreement. The motion passed, 5:2; Ms. Taylor and Ms. Bettman voting no. <br /> <br /> <br />MINUTES—Eugene City Council March 15, 2006 Page 7 <br /> Work Session <br /> <br />