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HomeMy WebLinkAboutItem A: EWEB Memorandum of Understanding ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Planning Process for Eugene Water & Electric Board Riverfront Property Meeting Date: November 21, 2007 Agenda Item Number: A City of Eugene Department: PDD Staff Contact: Nan Laurence www.eugene-or.gov Contact Telephone Number: 682-5340 ISSUE STATEMENT During a joint work session of the City Council and the Eugene Water & Electric Board (EWEB) Commissioners on May 30, 2007, elected officials directed the City Manager and the EWEB General Manager, respectively, to draft a memorandum of understanding (MOU) with an outline of the steps leading to the disposition and redevelopment of the EWEB riverfront property (see Attachment A). The MOU was drafted as directed and subsequently reviewed by the EWEB Board on November 6, 2007. The draft MOU is attached to the AIS for council consideration and action (see Attachment B). BACKGROUND Discussions concerning the redevelopment of the EWEB riverfront site have been ongoing for many years. The most recent round of discussions began during a joint meeting of EWEB Commissioners and the City Council on November 15, 2006. At that time, elected officials from the City and EWEB identified the need for additional opportunities to discuss current and emerging issues, such as the future of the EWEB riverfront site. As a follow-up to that meeting, the councilors and commissioners met on February 12, 2007 to discuss the disposition and planning requirements for the riverfront property. The focus of the meeting was to identify areas of agreement and disagreement and to further a collaborative dialogue in the planning work for the site. At that meeting, the City Council directed the City Manager to bring back to a work session, a proposal that negotiates City acquisition of the property, in the event that it is declared surplus, and provide options for a City-managed master plan process and a co-managed master plan process, both of which are collaborative with EWEB. Each of the issues is considered separately below. Although EWEB Commissioners did not take formal action on February 12, 2007, they expressed support for a collaborative process completed in a timely way but expressed concern with a City-led or co-managed process. EWEB Commissioners met subsequent to the February 12, 2007 meeting, both in executive session and at a special board meeting on May 8, 2007, to discuss possible elements and opportunities for collaboration on a master planning process. An outline of a proposed process was unanimously approved at that meeting and is included as Attachment B. The outline includes edits made by EWEB staff based on board comments. F:\CMO\2007 Council Agendas\M071121\S071121A.doc During a joint work session of the EWEB Commissioners and City Council on May 30, 2007, elected officials met to discuss possible approaches to plan for the future of the EWEB riverfront. Both the board and the council acted to recommend an EWEB-managed, collaborative master planning process. The board and the council also directed the EWEB General Manager and the City Manager, respectively, to draft a memorandum of understanding with an outline of the steps leading to the disposition and redevelopment of the EWEB riverfront property, and to bring the outline back for discussion at a subsequent joint meeting between the board and the council. A draft of the MOU was developed by staff from both organizations, and was considered by the EWEB Commissioners on November 6, 2007. At that meeting, the EWEB Commissioners requested two changes in the draft MOU: 1) to clarify that City staff would not bill EWEB for the time spent assisting this process, and 2) to clarify that a mix of uses or activities can take place within one building, a cluster of buildings, or across the entire site. These changes have been incorporated into the draft MOU attached to the AIS. The draft MOU addresses the process for master planning the EWEB riverfront property and the necessary land use applications required for redevelopment. The MOU does not impose limitations on the City regarding the possible purchase of the property, or on EWEB regarding the possible sale of the property. Both of these critical issues are addressed below. 1. Declaration of Surplus & Decision to Sell EWEB has sole authority to determine whether to sell, the portions of property to sell, and the timing for declaring the property surplus. A declaration of surplus can be made by a majority vote of the board to approve a resolution declaring a parcel surplus and to authorize the General Manager to begin disposal of the property. EWEB must then offer the City the first opportunity to acquire the property for “other municipal purposes.” The price for the property will be determined by EWEB. The price could be based on an appraisal of the property using assumptions about the future use and value. EWEB has stated that the purpose of selling the property is to generate funds for the relocation of utility operations to the Roosevelt site, and is not likely to declare that any of the property is for sale until after financing for relocation is secured. EWEB Commissioners and staff have also expressed concern that a master plan may not result in land use and development scenarios of adequate property value to cover relocation. EWEB can decide not to sell, establish a different price, or qualify the master plan prior to submitting it for City approval. 2. City Acquisition of EWEB Property After EWEB declares the property available for sale and establishes a price for the property, the City has two main options: to request negotiations or to not request negotiations. If the City wants to acquire the property, the City Manager must request negotiations within 30 days of initial notification from EWEB. The City Manager and the EWEB General Manager could then negotiate an agreement to compensate EWEB for the property. The City would need to undertake a good faith effort towards negotiating a price for the actual purchase of the property. The master planning process could also begin at that time, if it is not already underway. Unless the language in the Downtown Plan and the Land Use Code is revised, the City could not close on the purchase prior to the approval of a master plan, since the lot line adjustments required to legally separate the parcels for sale are land use applications and cannot be approved until the master plan is approved. If the City chooses to acquire all or a portion of the property, currently available urban renewal revenues would be insufficient. In all likelihood, general obligation bonds, requiring a public vote for approval, F:\CMO\2007 Council Agendas\M071121\S071121A.doc would need to be issued to generate adequate funds to purchase the property. The timing of any purchase would need to be related to the availability of funds. If the City Manager does not request negotiations, or a purchase and sale agreement is not signed between the City and EWEB within five years, EWEB may dispose of the property in any manner it deems appropriate. The City may also choose to waive its right to purchase the site prior to the end of the option period. In that case, EWEB could proceed with master planning and land use applications, while determining a price for the property and marketing it to a private purchaser. RELATED CITY POLICIES Downtown, which includes the EWEB riverfront property, is one of the council’s ten priority areas. Numerous City policies also reference the potential and community value of the EWEB riverfront property. The most relevant and recent are the four policies in the Downtown Riverfront section of the Downtown Plan (page 29): 1.Incorporate the Willamette River as an integral element to downtown planning and development. 2.Collaborate with EWEB to encourage relocation of their utility facilities. 3.A master plan for the EWEB riverfront property must be approved by the City before any redevelopment, land use application, rezoning, Metro Plan or refinement plan diagram amendments are approved for uses not associated with EWEB functions. The master plan shall be evaluated based on the master plan's consistency with principles A through D below: A.Create a “people place” that is active, vibrant, accessible and multi-use. B.Provide appropriate setbacks, deeper where environmental or habitat issues are more critical, shallower in other areas. C.Incorporate appropriate building and site design techniques that address environmental concerns. D.Incorporate an educational aspect, so that the riverfront improvements teach us about our river, our history and our city. The master plan shall be considered using the City's Type II application procedures, unless the applicant elects to have the master plan reviewed concurrently with a Type III, Type IV or Type V application. 4.Facilitate dense development in the courthouse area and other sites between the core of downtown and the river. COUNCIL OPTIONS 1.Authorize the City Manager to sign a memorandum of understanding substantially similar to Attachment B outlining the steps leading to the disposition and redevelopment of the EWEB riverfront property. 2.Authorize the City Manager to sign a memorandum of understanding substantially similar to Attachment B but with changes as requested by the council outlining the steps leading to the disposition and redevelopment of the EWEB riverfront property. This option may require further review and discussion with EWEB. 3.Provide other direction to the City Manager regarding the next steps for the disposition and redevelopment of the EWEB riverfront property. 4.Take no action. F:\CMO\2007 Council Agendas\M071121\S071121A.doc CITY MANAGER’S RECOMMENDATION The City Manager recommends that the council authorize the City Manager to sign a memorandum of understanding substantially similar to Attachment B outlining the steps leading to the disposition and redevelopment of the EWEB riverfront property. SUGGESTED MOTION Move to authorize the City Manager to sign a memorandum of understanding substantially similar to Attachment B outlining the steps leading to the disposition and redevelopment of the EWEB riverfront property. ATTACHMENTS A. EWEB Riverfront Property holdings B. City of Eugene/EWEB MOU draft dated November 7, 2007 FOR MORE INFORMATION City of Eugene Staff Contact: Nan Laurence Telephone: 682-5340 Staff E-Mail: nan.laurence@ci.eugene.or.us F:\CMO\2007 Council Agendas\M071121\S071121A.doc F:\CMO\2007 Council Agendas\M071121\S071121A.doc ATTACHMENT B City of Eugene/Eugene Water and Electric Board MEMORANDUM OF UNDERSTANDING (Draft: 11/7/2007) WHEREAS, the City of Eugene (City) is a city under the Eugene City Charter, and Eugene Water & Electric Board (EWEB) is the municipal utility of the City, created by the Eugene Charter; and WHEREAS, EWEB’s Riverfront Headquarters Property, as shown in Exhibit A attached hereto, (Riverfront Property) is the current location of EWEB’s utility headquarters; and WHEREAS, Riverfront Property is also uniquely located on the Willamette River in close proximity to Downtown Eugene causing it to have a high profile and significant potential to create and characterize the connection between downtown and the river and contribute to the identity of the entire community; and WHEREAS, EWEB and City agree that the master planning of the Riverfront Property must meet the needs of both EWEB and the City; and WHEREAS, EWEB desires to establish a new Operations Center at a site on Roosevelt Boulevard and is considering the future sale of a portion of the Riverfront Property to help fund a new Roosevelt Operations Center; and WHEREAS, EWEB’s financial plan to move utility operational functions to the Roosevelt site depends, in part, on its ability to receive sufficient funds from the sale of a portion of the Riverfront Property; and the timing of such sale is critical to the financial plan for the construction of the new EWEB Operations Center; and WHEREAS, Eugene Code 9.9540 requires development of a Master Plan for the Riverfront Property for uses not associated with EWEB functions; and WHEREAS, Eugene Code 2.196 provides a process for EWEB to dispose of real property when it is no longer needed for utility purposes. NOW, THEREFORE, City and EWEB agree to the process outlined in this MOU, for development of the master plan for the EWEB Riverfront Property. The parties agree as follows: 1. Formation of a Citizen Advisory Team (CAT). Upon the signing of this MOU, City and EWEB staff will begin developing criteria for a Citizen Advisory Team for review and approval by the EWEB Board and City Council. The criteria will be designed to ensure a well functioning F:\CMO\2007 Council Agendas\M071121\S071121A.doc group of nine citizens from different identified communities of interest representing a diversity of public opinion. Within two months of approval of the criteria, the EWEB Board will select five members, then the City Council will select four members of the CAT consistent with the approved criteria. City staff and EWEB staff will assist the Board and Team within their respective areas of expertise; City staff will not bill EWEB for their assistance. The CAT will work with a qualified consultant/facilitator to create a master plan for the EWEB site. 2. Hiring the Consultant / Facilitator (Consultant). Following the appointment of the full Citizen Advisory Team, the CAT will develop proposed criteria for a Request For Qualifications (RFQ) to hire a Consultant to facilitate the CAT and develop the Master Plan for the redevelopment of the EWEB riverfront. Following the Board’s approval or modification of the proposed criteria, EWEB Staff will advertise the RFQ. The CAT will review and analyze responses to the RFQ and then recommend to the EWEB Board their preferred applicant. The recommendation will include a list of the finalists and why the preferred applicant is recommended over the other finalists. The EWEB Board will review the recommendation and information and then select the Consultant to be hired. 3. Project Kick-off Meeting. As soon as possible after the hiring of the Consultant, EWEB will host a kick-off meeting. The meeting will bring together the CAT, Consultant, EWEB Board and interested City and EWEB Staff to discuss the constraints and opportunities of the site. The Kick-off Meeting will be open to the public. 4. Development of the EWEB Riverfront Master Plan. The Master Plan for the EWEB site is intended to be a comprehensive plan that describes the overall development concept for the EWEB waterfront properties. The Master Plan should contain both text and images to communicate the scale and character of development envisioned for the site and to guide the long-term physical development over time. At a minimum, the Master Plan will include the following information: a. A description and diagram of the overall development concept; b. A description of how the concept satisfies the criteria in the Downtown Plan; c. Any architectural, urban design or landscaping guidelines, principles or standards; d. A description and diagram of general uses on the site; e. Anticipated height and massing of the structures on the site; f. Location of roads, sidewalks and other transportation and infrastructure elements; g. Location of landscaped areas, open space areas or protected riparian areas; h. A description of how the site connects with surrounding sites; and i. Any anticipated phasing of development or site improvements. A public involvement process shall aid the development of the Riverfront Master Plan. This process shall include public input for the “Concept Elements,” as outlined in Policy 3 of the April, 2004 Eugene Downtown Plan (page 29), as well as for the Draft Riverfront Plan. At an initial Open House, a series of concepts shall be developed for each element required by Policy 3, on Page 29 of the April, 2004 Eugene Downtown Plan. These concepts will include graphic F:\CMO\2007 Council Agendas\M071121\S071121A.doc representations as well as brief written descriptions. The CAT and Consultant will present the draft concepts to the EWEB Board. The EWEB Board will have the opportunity to review and revise the draft concepts prior to the second Open House. The CAT and Consultant will host a second Open House where the Board-reviewed concepts will be shared with the community and additional input will be solicited. Based on this input, and with oversight from the CAT, the Consultant will combine the best concepts for each element into a single “Combined Concepts” for the site. The Combined Concepts will be presented to the Board for review. Combined concepts will then be displayed at a third Open House. Input and comments will be solicited again and the Final Concepts will be recommended to the EWEB Board for review, revision and approval. After Board approval of Final Concepts, the Consultant and CAT will draft the full “Riverfront Master Plan”. The draft Riverfront Master Plan will be presented at a fourth open house. Appropriate revisions will be made and the revised draft will be presented to the EWEB Board for its review and approval. Following approval by the Board, the Master Plan, together with necessary Metro Plan and zone changes, will be presented to the City. Total elapsed time should be approximately one year between the contract date for the Consultant to begin work, and when the final Riverfront Master Plan is forwarded to the City for approval. The process outlined in this MOU is intended to provide a framework. Nothing in the MOU is intended to prohibit EWEB, for example, from providing additional opportunities for public involvement. 5. Eugene Code 9.9540 requires a Master Plan for the EWEB Riverfront Site. The Downtown Plan and the Eugene Code call for a mixed-use development with open space along with other elements. The amount of open space required is not discussed or codified elsewhere in the Code for similar developments. The term “Mixed Use” is also not defined in the Eugene Code. For the purpose of this project, the City and EWEB agree that the term “open space” is intended to mean areas preserved for public use such as landscaped areas, plazas or other non-buildable areas open to the public, exclusive of roads. The term “mixed-use development” is intended to mean the existence of more than one type of use or activity. The mix of uses or activities can vary widely but typically includes a higher density combination of residential, commercial and other activities. The uses are typically in close proximity, pedestrian friendly, and compatible with multi-modal transportation. The mix of uses can occur within a single building, a cluster of buildings, or buildings over the entire site. - 6. Implementation of Land Use Planning Components of the Master Plan. Consistent with the approved Master Plan, and either concurrently or sequentially, the consultant will lead the process for developing proposals and applying for required land use applications, including: a. Metro Plan Amendment; b. Lot Line Adjustments/Creation; and c. Re-zoning. 7. Amendments to MOU. Upon mutual consent in writing, this Memorandum of Understanding may be revised as time and circumstance warrant. F:\CMO\2007 Council Agendas\M071121\S071121A.doc Eugene Water & Electric Board By:_____________________________ Date: ___________________________ City of Eugene By:_____________________________ Date: __________________________ F:\CMO\2007 Council Agendas\M071121\S071121A.doc