HomeMy WebLinkAboutItem 4: Termination of Option on Roberts Building
EURA
UGENE RBAN ENEWAL GENCY
AIS
GENDA TEM UMMARY
Action: Termination of Purchase Option on Roberts (Taco Time) Property
Meeting Date: July 14, 2008 Agenda Item Number: 4
Department: Planning and Development Staff Contact: Denny Braud
www.eugene-or.gov Contact Telephone Number: 682-5536
ISSUE STATEMENT
On September 15, 2006, the Urban Renewal Agency (URA) signed a purchase option agreement on the
Roberts (Taco Time) building located on the northwest corner of Broadway and Willamette Street. The
URA board is asked to consider a request from the property owner to terminate the purchase option
agreement so that independent redevelopment of the property can occur.
BACKGROUND
Beginning in 2006, the URA signed purchase option agreements on several properties within the West
Broadway redevelopment area. The URA subsequently provided direction to exercise purchase options
on the Centre Court property, Washburne Building, and the Diamond Parking property. The URA
directed the Director to not exercise the purchase of the Roberts property at that time. The URA also
provided direction to solicit offers from parties interested in an assignment of the West Broadway
purchase option agreements, including this one, not being exercised by the URA. Notice of the bidding
process was provided to the public, and no bids were received on any of the purchase options, including
the Roberts property.
On June 24, 2008, the City Manager received a request from Jack Roberts (property owner partner) for
the URA to terminate the purchase option agreement to allow for the pursuit of re-leasing of space or
redevelopment of the property. (This letter is Attachment A.) The property owner has indicated a
willingness to pay $500 for the early termination of the agreement. (The URA paid $3,000 for the initial
12-month option and $2,000 for a 12-month extension, which expires on September 15, 2008.) The
$500 payment roughly represents a prorated amount of option money paid by the URA, based on the
remaining term of the agreement.
The presence of the URA’s purchase option limits the property owner’s ability to enter into long-term
leases or pursue a sale of the property and may be seen as an encumbrance to the potential and continued
redevelopment of a portion of our downtown. Several West Broadway purchase option agreements have
already expired; those include the Scan Design property, Josh Keim’s property, Diva to Shawmed half-
block, and Betty Snowden’s property. The purchase options on other properties, including Lazar’s, John
Henry’s, and Jack Louie are scheduled to expire over the next few months.
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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.
·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.
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This item is also related to one of the 2007-2008 Council Goals: Downtown InitiativeFacilitate
significant revitalization of downtown core.
AGENCY OPTIONS
1. Authorize the Agency Director to terminate the purchase option on the Roberts property.
2. Do not approve the termination request.
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AGENCY DIRECTOR’S RECOMMENDATION
The Agency Director recommends approval of the request to terminate the purchase option agreement
on the Roberts property.
SUGGESTED MOTION
Move to authorize the Agency Director to terminate the purchase option agreement on the Roberts
property upon receipt of the proposed $500 payment from the property owner.
ATTACHMENTS
A. Letter from Sanjacron, LLC
FOR MORE INFORMATION
Staff Contact: Denny Braud
Telephone: 682-5536
Staff E-Mail: denny.braud@ci.eugene.or.us
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