HomeMy WebLinkAboutItem B: West Broadway Update
EURA
UGENE RBAN ENEWAL GENCY
AIS
GENDA TEM UMMARY
Work Session: West Broadway Update
Meeting Date: February 11, 2008 Agenda Item Number: B
Department: Planning & Development Staff Contact: Denny Braud
www.eugene-or.gov Contact Telephone Number: 682-5536
ISSUE STATEMENT
The Urban Renewal Agency (URA) has signed purchase option agreements on several properties within
the West Broadway redevelopment area. The URA Board is asked to consider next steps for the
properties.
BACKGROUND
The URA secured purchase options on properties within the West Broadway redevelopment area
between Willamette Street and Charnelton Street (see Attachment A map of the optioned properties).
The option terms and purchase prices associated with each of the purchase options were negotiated
independently based on each property owner’s individual circumstances. A summary of terms
associated with each property is included in Attachment B.
On December 10, 2007, the URA provided direction to pursue a development agreement for the Beam
Development project and to proceed with acquisition or assignment of the options on the Washburne
building, Centre Court building and adjacent hole, within the financial constraints of the current $33
million urban renewal district spending limit. Also on December 10, 2007, the URA provided direction
to proceed with acquisition of the Diamond property, also within the existing financial constraints of the
urban renewal district spending limit.
On March 10, 2008, the council will consider the supplemental budget action necessary to move forward
with the purchase of the Centre Court building and adjacent hole ($2.8 million), the Washburne building
($1.9 million), and the Diamond property ($290,360). The Diamond option agreement also requires the
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City to convey ownership of the City-owned parking lot located on Oak Street between 11 and 12
Avenues as additional compensation for the acquisition of the Diamond property (See Attachment C
map of City-owned Oak Street parking lot). The Diamond parking lot is an integral part of the future
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development of the adjacent URA-owned 10 and Charnelton development site. (Development
proposals for the site will be sought through a Request for Proposals that is scheduled for release on
March 1, 2008.)
The Downtown Urban Renewal District financial resources are limited and may not be sufficient to
accommodate additional property purchases beyond that of the Centre Court building, adjacent hole,
Washburne building, and Diamond property. Furthermore, preliminary negotiations with Beam
Development indicate a need for URA financial participation. (A hypothetical financial model for the
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Beam project was included in the Agenda Item Summary for the December 10 work session). The
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undefined project for the10 and Charnelton site may also entail URA financial participation. In lieu of
purchasing other West Broadway properties, the URA could consider assignment of the purchase
options. (All of the agreements allow the purchase options to be assigned to another party.)
RELATED CITY POLICIES
Future redevelopment of the West Broadway Redevelopment Area is consistent with the policies and
implementation strategies included in the Downtown Plan, including:
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Downtown development shall support the urban qualities of density, vitality, livability and
diversity to create a downtown, urban environment.
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Actively pursue public/private development opportunities to achieve the vision for an active,
vital, growing downtown.
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Use downtown development tools and incentives to encourage development that provides
character and density downtown.
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Promote multi-story, mixed-use structures downtown through financial incentives or code
amendments.
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Stimulate multi-unit housing in the downtown core and on the edges of downtown for a variety
of income levels and ownership opportunities.
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Provide and promote development and community events that reinforce downtown’s role as the
cultural center for the city and region.
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Reinforce the creative, distinctive culture of downtown as the arts and entertainment center of
the city.
In addition, the future development of the West Broadway Redevelopment Area is responsive to the
following Growth Management policies:
Policy 1: Support the existing Eugene Urban Growth Boundary by taking actions to
increase density and use existing vacant and under-used land within the boundary
more efficiently.
Policy 2: Encourage in-fill, mixed-use, redevelopment, and higher density
development.
Policy 3: Encourage a mix of business and residential uses downtown using incentives and
zoning.
Policy 10: Encourage the creation of transportation-efficient land use patterns and
implementation of nodal development concepts.
Policy 14: Development shall be required to pay the full cost of extending infrastructure and
services, except that the City will examine ways to subsidize the costs of
providing infrastructure or offer other incentives that support higher-density infill,
mixed use, and redevelopment.
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This item is also related to one of the 2007-2008 Council Goals: Downtown InitiativeFacilitate
significant revitalization of downtown core.
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COUNCIL OPTIONS
Option 1: Purchase approved properties and expire remaining options
a)Consider supplemental budget item on March 10 for the acquisition of the Centre Court building
and adjacent hole, the Washburne building, and the Diamond property.
b)Provide direction for the City Manager to convey ownership of the City-owned Oak Street
parking lot to Diamond Parking as partial compensation for the URA’s acquisition of the
Diamond property.
c)Let the purchase options expire on all of the remaining West Broadway properties.
Option 2: Purchase additional properties and expire remaining properties
a)Consider supplemental budget item on March 10 for the acquisition of the Centre Court building
and adjacent hole, the Washburne building, and the Diamond property.
b)Provide direction for the City Manager to convey ownership of the City-owned Oak Street
parking lot to Diamond Parking as partial compensation for the URA’s acquisition of the
Diamond property.
c)Acquire other optioned property(s) within the West Broadway redevelopment area.
d)Let the purchase options expire on the remaining West Broadway properties.
Option 3: Purchase approved properties and solicit offers for assignment of remaining options
a)Consider supplemental budget item on March 10 for the acquisition of the Centre Court building
and adjacent hole, the Washburne building, and the Diamond property.
b)Provide direction for the City Manager to convey ownership of the City-owned Oak Street
parking lot to Diamond Parking as partial compensation for the URA’s acquisition of the
Diamond property.
c)Provide direction for the Agency Director to solicit offers from parties interested in an
assignment of the purchase options not being exercised by the URA.
AGENCY DIRECTOR’S RECOMMENDATION
The Agency Director recommends Option #3 for the URA to a) consider supplemental budget item on
March 10 for the acquisition of the Centre Court building and adjacent hole, the Washburne building,
and the Diamond property, b) provide direction for the City Manager to convey ownership of the City-
owned Oak Street parking lot to Diamond Parking as partial compensation for the URA’s acquisition of
the Diamond property, and c) provide direction for the Agency Director to solicit offers from parties
interested in an assignment of the purchase options not being exercised by the URA.
SUGGESTED MOTION
Urban Renewal Agency Motion
Move to direct the Agency Director to solicit offers from parties interested in an assignment of the
purchase options not being exercised by the URA.
Eugene City Council Motion
Move to direct the City Manager to convey ownership of the City-owned parking lot identified in
Attachment C to Diamond Parking as partial compensation for the URA’s acquisition of the property
identified as property #4 in Attachment A.
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ATTACHMENTS
A. Map of Optioned Properties
B. Summary of Purchase Option Terms
C. Map of City-Owned Oak Street Parking Lot
FOR MORE INFORMATION
Staff Contact: Denny Braud
Telephone: 682-5536
Staff E-Mail: denny.braud@ci.eugene.or.us
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