HomeMy WebLinkAboutItem B: Discussion of Beverly/Green Properties
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Work Session: Acquisition of Beverly/Green Properties
Meeting Date: October 22, 2007 Agenda Item Number: B
Department: Public Works/City Attorney Staff Contact: PW/Kurt Corey - CAO/Glenn Klein
www.ci.eugene.or.us Contact Telephone Number: 682-5241/682-5080
ISSUE STATEMENT
This is a work session to follow-up the July 9, 2007, work session and motion passed by the council
related to the possible acquisition, by condemnation if necessary, of the Beverly and Green properties.
BACKGROUND
In response to prior City Council direction, a public hearing was held on May 21, 2007, on an ordinance
authorizing the use of eminent domain for acquisition of the two parcels in South Eugene. Action was
scheduled to occur on July 9, 2007.
On July 9, the council did not act on the ordinance, but instead, passed a motion that directed the City
Manager to: a) obtain appraisals for the Beverly and Green properties based on low, medium, and high
levels of development intensity, and to contract with whatever other consultants (besides the appraiser)
are needed to develop the information that the appraiser needs for his or her appraisal; b) schedule a
work session to bring back information related to the property, eminent domain and potential sources of
money for the acquisitions; c) bring back the condemnation ordinance after the work session(s) with
certain changes spelled out in the motion; and d) report back to the council after the City has contracted
with the consultants about when the work session(s) can be held. The motion further directed that the
sequence of action was first, bring back the appraisals; second, hold the work session (including
executive session); and third, bring back the revised ordinance. A friendly amendment to the motion
also stated that the work session should be held in October.
In a memo dated September 6, 2007, the City Attorney’s Office provided an update of the status at that
time. The appraisals are not yet completed (the following paragraph describes where the City is in the
process). However, because the council’s motion stated that a work session should be held in October,
this work session is occurring even though the motion also stated that the sequence of events should
begin with the completion of the appraisals.
The council passed its motion on July 9, 2007. Later that month, the City evaluated possible appraisers
and selected Powell Valuations. In August, the City met with the appraiser to discuss what information
the appraiser needed, and then provided the appraiser with complete sets of all of the applications for the
Beverly and Green properties. Those sets included not only the application materials, but also all of the
testimony, including the expert reports and testimony submitted by proponents, opponents and any other
interested party. Based on the appraiser’s review of that information, the appraiser then identified other
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expertise that he would need to render his opinion. The City then retained those consultants. One of the
consultants has expertise in geologic issues, and after review of the expert reports submitted as part of
the land use process, recommended additional drilling that should be done. (The Planning Commission
had reached a tentative conclusion that additional geologic information was necessary.) Given the
schedule of drillers, the drilling could not happen until the latter part of October. It is expected that the
City and appraiser will receive that information and that the appraiser will be able to complete his
analysis by the end of November or beginning of December.
At the work session, staff should be able to confirm when the drilling will occur. Based on that
information, staff may have a more definite date from the consultant and appraiser as to when the
appraiser will have an opinion on value (based on the high, medium and low levels of development
intensity).
Councilors also requested information concerning the possible use of parks and open space bond funds
for acquisition, and the possibility of personal liability if the source of funds is later determined to be an
improper source. The City Attorney’s Office has concluded that the parks and open space bond
proceeds can be used for acquisition of the Green and Beverly properties, although there is a limit on
how much of the proceeds can be used. For example (and hypothetically only since the appraiser has
not yet provided his opinion on values for the properties), the council could not choose to spend the
entire bond measure on the acquisition of the two properties, because the bond measure states that the
bond proceeds will be used for purposes beyond acquisition of open space. Determining where that
limit is will require input from the city’s bond counsel. Rather than attempt to determine that question
in the abstract, staff is waiting until after the appraiser has completed the appraisals. At that point, staff
can obtain the input from bond counsel and then inform the council whether the entire appraisal amount
could be funded from the bond proceeds, should the council decide to use that source of funds.
With regard to the possibility of personal liability, the City Attorney’s Office believes that councilors
would not be personally liable should the council decide to use the bond proceeds and a court later
determines that the bond proceeds should not have been used. At the time that the City Attorney
provides the council with a more formal opinion on the question of use of funds (after input from bond
counsel and numbers from the appraiser), the City Attorney also will provide the council with more
information about this issue.
RELATED CITY POLICIES
Not applicable.
COUNCIL OPTIONS
This work session is to provide information only. Based on the council’s July 9 motion, no action is
contemplated until after the appraiser completes his analysis and shares with the council his opinion on
values.
CITY MANAGER’S RECOMMENDATION
The City Manager has no recommendation on this item.
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SUGGESTED MOTION
No motion is suggested; this is a work session only.
ATTACHMENTS
None.
FOR MORE INFORMATION
Staff Contact: Kurt Corey
Telephone: 682-5241
Staff E-Mail: kurt.corey@ci.eugene.or.us
Staff Contact: Glenn Klein
Telephone: 682-5080
Staff E-Mail: glenn.klein@harrang.com
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