CC Minutes - 02/13/06 Work Session

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to specify financing up to $5.7 million. City Manager Taylor said that identifying the additional $3.2 million from funds that would basically be an unsecured loan would be the greatest challenge. Mr. Papé said the council should be frank that the City would be providing the equity funding for the ORI project and taking a risk. He said that buildings typically had between 20 and 40 percent equity, with the rest being borrowed funds and there would be no security for the funds ORI was borrowing from the City. He would not support any proposal that did not have some sort of security and the council would be poor stewards of public resources without assurance of security for the loan, which it was building equity or personal guarantees from the principals of ORI. Mr. Kelly asked if the 60-day timeline was for the terms and conditions of the City’s participation or terms and conditions of all financing sources. Mr. Papé replied it was only for the City’s participation. Mayor Piercy said she approached the matter with support for ORI and the success of the project and skepticism about the ability to fill the funding gap and the City’s risk. The vote on the motion to amend was a 4:4 tie, with Mr. Poling, Mr. Pryor, Ms. Solomon, and Mr. Papé voting in opposition and Mr. Kelly, Ms. Bettman, Ms. Taylor, and Ms. Ortiz voting in favor. Mayor Piercy cast a vote in favor and the motion passed on a final vote of 5:4. The vote on the main motion was a 4:4 tie, with Ms. Solomon, Mr. Poling, Mr. Papé and Mr. Pryor voting in opposition and Mr. Kelly, Ms. Bettman, Ms. Taylor, and Ms. Ortiz voting in favor. Mayor Piercy cast a vote in favor and the motion passed on a final vote of 5:4. The meeting adjourned at 7:30 p.m. Respectfully submitted, Dennis M. Taylor City Manager (Recorded by Lynn Taylor) MINUTES—Eugene City Council February 13, 2006 Page 12 Work Session