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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: Surplus Property Meeting Date: June 17, 2013 Agenda Item Number: B Department: Planning & Development Staff Contact: Mike Sullivan www.eugene-or.gov Contact Telephone Number: 541-682-5448 ISSUE STATEMENT To facilitate development of The Hub project located at Broadway and Ferry Street, Core Campus has requested consideration of a lease of City-owned surplus real property located at 901 Franklin Blvd. The property would be used by The Hub to provide off-site parking for residents of the proposed multi-unit housing project. The council is being asked to approve the lease of the property. (This action item is subject to council’s prior action on the Multiple-Unit Property Tax Exemption (MUPTE) application for The Hub project). BACKGROUND The City of Eugene owns the commercial (C-2) property located at 901 Franklin Blvd. (see Attachment A map) which is no longer needed for public purpose and is therefore eligible to become surplus. The property (approximately 0.95 acres) was acquired in 1992 for the planned access right-of-way for the Riverfront Research Park. The property was partitioned in 2006 to create two parcels. The east parcel’s intended use is future right-of-way. The west parcel is surplus property that is not needed. The property improvements were demolished in 2009, following a fire that resulted in significant damage to the structures. The property is currently used as a surface parking lot. The property has been actively marketed since 2011 through the City’s real estate management contractor, Pacific Real Estate. The appraised value of the property has been determined to be $900,000. City Council approved the sale of the property at $715,000 for a fast-food restaurant use in late 2011. The purchaser did not move forward with the purchase following a determination during the due diligence period that the site’s access issues did not meet the needs of the proposed project. Core Campus has proposed leasing all or portions both the west and east parcels for up to 50 years, with the option of purchasing the property at market value (to be determined at the time of purchase). Although the final configuration of the parking for the site has not been finalized, their desire is to secure approximately 50,000 square feet under the lease. This will allow The Hub project to meet the parking requirements in the City Code. S:\CMO\2013 Council Agendas\M130617\S130617B.doc