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HomeMy WebLinkAboutItem A: West Broadway Options EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Work Session: West Broadway Options Meeting Date: March 12, 2008 Agenda Item Number: A Department: Planning and Development Staff Contact: Denny Braud www.eugene-or.gov Contact Telephone Number: 682-5536 ISSUE STATEMENT The Urban Renewal Agency (URA) has solicited offers from parties interested in an assignment of the purchase option agreements not being exercised by the URA within the West Broadway redevelopment area. At a February URA work session, the URA Board asked the Agency Director to present for review all bids from parties interested in an assignment of the three purchase options set to expire in March. BACKGROUND At the February 20 work session, the URA Board amended (with friendly amendments) the suggested motion in the AIS. With the amendments the motion passed was as follows: To direct the Agency Director to: 1) solicit offers from parties interested in an assignment of the purchase options not being exercised by the URA based on the methodology as amended at this work session; 2) put all property options out at the same time; 3) require proposals for the three options that are set to expire in March to be submitted in the beginning of March, and 4) require proposals for the other options to be submitted later in the spring or early summer. The URA Board will review and select bidders based on the criteria listed in Attachment A. Notice of the bidding process was provided on February 25 in the Register Guard and on February 28 in the Eugene Weekly. Tenants and property owners were notified individually with a direct mailing sent on February 22. Information is also available on the City’s website. Offers for individual options in Lot 1 will be accepted until 2:30 p.m., March 10 and offers for individual options in Lot 2 will be accepted until 2:30 p.m., May 2. (See Attachment B for the notice information and description of Lots 1 and 2.) As of the date of writing this Agenda Item Summary, no bids have been received. Any bids received will be distributed to the URA Board under separate cover, prior to the March 12 work session. 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: ? Downtown development shall support the urban qualities of density, vitality, livability and diversity to create a downtown, urban environment. L:\CMO\2008 Council Agendas\M080312\S080312A.doc ? Actively pursue public/private development opportunities to achieve the vision for an active, vital, growing downtown. ? Use downtown development tools and incentives to encourage development that provides character and density downtown. ? Promote multi-story, mixed-use structures downtown through financial incentives or code amendments. ? Stimulate multi-unit housing in the downtown core and on the edges of downtown for a variety of income levels and ownership opportunities. ? Provide and promote development and community events that reinforce downtown’s role as the cultural center for the city and region. ? 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. – This item is also related to one of the 2007-2008 Council Goals: Downtown InitiativeFacilitate significant revitalization of downtown core. COUNCIL OPTIONS Should the City receive a bid or bids for an assignment of purchase options, the URA Board could: 1. Provide direction for the Agency Director to accept or reject specific offers from parties interested in an assignment of the purchase options. 2. Let the purchase options expire. AGENCY DIRECTOR’S RECOMMENDATION The Agency Director will make a recommendation at or prior to the March 12 meeting, depending on the receipt of bids. SUGGESTED MOTION None at this time. L:\CMO\2008 Council Agendas\M080312\S080312A.doc ATTACHMENTS A. Selection Criteria - as reviewed by the URA Board on 2/20/08 B. Sealed Bidding Notice FOR MORE INFORMATION Staff Contact: Denny Braud Telephone: 682-5536 Staff E-Mail: denny.braud@ci.eugene.or.us L:\CMO\2008 Council Agendas\M080312\S080312A.doc ATTACHMENT A Selection Criteria As reviewed by the URA Board on 2/20/08 Offer will be distributed through webpage, newspaper, information meeting (pre-bid), ? and commercial publications. Minimum bid will be established at the total of the URA's option money payment(s). ? All bids will be submitted at one time, but tenants will have first rights. If multiple ? tenants of a building submit bids, then the tenant submitting the highest bid will be awarded the assignment. If only one tenant bids, and the bid is higher than the amount of the City’s option ? money payments on that property, the bid amount will automatically be adjusted down to the total amount of the City’s option money payments. If no tenants submit a bid, then the highest non-tenant bidder will be awarded the ? assignment. A "memo of offer" will be created by the URA to be used by bidders to submit their ? bids. The offer will include a bid amount, description of the delivery of cash, the purpose of the development, public benefit provided by the development, and the timing of the project. Offers will be accepted up to a deadline, and the bids will be opened publicly. ? The bid proposal will be provided to the URA Board for selection. ? The URA Board will select and award the bid based on highest bid and the public ? benefit provided by the proposal. Successful bidder will need to deliver cash and sign a "memo of intention" within a ? specific time period. The URA Board retains the right to reject any and all bids. ? If a building is demolished, new construction must begin within 6 months of ? demolition. If construction does not begin within 6 months, then owner will pay to the URA an ? amount equal to 5% of the purchase price for every 6 month period in which there is no new construction. ATTACHMENT B Sealed Bidding Notice Sealed offers for the Sale of Seven (7) Property Purchase Options by the Urban Renewal Agency (URA) will be accepted by the City of Eugene Purchasing Office, 100 West 10th Avenue, Suite 400, Eugene, Oregon 97401. Offers for individual options in Lot 1 as described below will be accepted until 2:30 PM, Monday, March 10, 2008, and offers for individual options in Lot 2 as described below will be accepted until 2:30 PM, Friday, May 2, 2008. The purchase options will be sold to the offer best meeting the URA’s needs. First priority shall be granted to existing tenants of listed properties. The URA shall have the option to sell the property options to any other offeror should the URA not accept any offer from existing property tenants. Please note that this is not a sale of real property, only the sale of options to purchase real property for the amounts previously negotiated by the Urban Renewal Agency. All properties listed are not owned by the City or the URA. Listed below is a description of each property with an option to purchase currently owned by the URA of Eugene. The minimum offer for the sale of the purchase option follows each description in parentheses: Lot 1, offers due by 2:30 PM, Monday, March 10, 2008 ? Option 1: 55 West Broadway, Eugene, Oregon, Map No. 17-03-31-13, Lot No. 03400, Purchase Price in Option Agreement $900,000 (Minimum Offer for assignment of purchase option $7,000.00) ? Option 2: 115 West Broadway, Eugene, Oregon, Map No. 17-03-31-13, Lot No. 04800, Purchase Price in Option Agreement $2,191,140 (Minimum Offer for assignment of purchase option $12,000.00) ? Option 3: 110 West Broadway, Eugene, Oregon, Map No. 17-03-31-13, Lot No. 04900, & 164 West Broadway, Eugene, Oregon, Map No. 17-03-31-13, Lot No. 06700, Purchase Price in Option Agreement $3,150,000 (Minimum Offer for assignment of purchase option $79,333.00) Lot 2, offers due by 2:30 PM, Friday, May 2, 2008 ? Option 4: 99 West Broadway, Eugene, Oregon, Map No. 17-03-31-13, Lot No. 03000, Purchase Price in Option Agreement $1,980,000 (Minimum Offer for assignment of purchase option $65,500.00) ? Option 5: 79 West Broadway, Eugene, Oregon, 17-03-31-13, Lot No. 03100, & 57 West Broadway, Eugene, Oregon, Map No. 17-03-31-13, Lot No. 03300, Purchase Price in Option Agreement $1,550,000 (Minimum Offer for assignment of purchase option $7,000.00) ? Option 6: 77 West Broadway, Eugene, Oregon, Map No. 17-03-31-13, Lot No. 03200, Purchase Price in Option Agreement $675,000 (Minimum Offer for assignment of purchase option $38,000.00) ? Option 7: 43 West Broadway, Eugene, Oregon, Map No. 17-03-31-13, Lot No. 01100, Purchase Price in Option Agreement $1,200,000 (Minimum Offer for assignment of purchase option $5,000.00) Representatives will be available to answer questions in person from 4:00 PM to 7:00 PM, Wednesday, thth March 5, in the Bascom/Tykeson Rooms at the Downtown Public Library, 100 West 10 Avenue, Eugene, Oregon, 97401. The Urban Renewal Agency reserves the right to accept or reject any or all offers, if it is in the best interest of the URA to do so. Please contact Jamie Frost, (541) 682-6820 at the Purchasing Office for offer forms, purchase option specifications, evaluation criteria and all other questions regarding this sale.