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HomeMy WebLinkAbout02/09/1987 Meeting e M I NUT E S Eugene City Council Council Chamber--City Hall February 9, 1987 6:00 p.m. COUNCILORS PRESENT: Debra Ehrman, Emily Schue, Cynthia Wooten, Ruth Bascom, Roger Rutan, Jeff Miller, Rob Bennett. COUNCILORS ABSENT: Freeman Holmer. The regular meeting of the City Council of Eugene, Oregon, was called to order by City Council President Debra Ehrman in the absence of His Honor Brian B. Obie. Ms. Ehrman announced that the Council Subcommittee on Committees will meet Wednesday, February II, 1987, to discuss appointments to the Nuclear Free Zone Task Force. She said a list of applicants was distributed to the councilors. She suggested other councilors discuss the applicants with her, Mayor Obie, or Mr. Holmer, who are members of the subcommittee. Ms. Ehrman said the council is meeting at 6 p.m. to accommodate people who e wi sh to be home early. 1. PUBLIC FORUM Ms. Ehrman said the public forum is an opportunity for people to express opinions and provide information to the council about issues which are not scheduled for council consideration. No one wished to speak during the public forum. II. PUBLIC HEARING: PROPOSED REVISIONS TO CONDOMINIUM CONVERSION ORDINANCE City Manager Micheal Gleason introduced consideration of the Condominium Conversion Ordinance. Planning Director Susan Brody gave the staff report. She said the Condominium Conversion Ordinance was adopted in 1980 and the Planning Commission began a review of the ordinance in October 1985. She introduced Robin Johnson, a Planning Department consultant. Ms. Johnson reviewed the changes the Planning Commission recommended to the existing ordinance. Discussing the purchaser protections, she said the commission recommended retention of the disclosure provisions, deletion of e MINUTES--Eugene City Council February 9, 1987 Page 1 ~ e e the resale requirements, changes to the requirement for a reserve account, retention of the Architect's and Engineer's Report, deletion of the requirement for a warranty account, and replacement of the reference to the Housing Code with a reference to the Uniform Building Code. Discussing the tenant protections, she said the commission recommended retention of notification requirements for all tenants at the beginning of the conversion process, removal of the eviction and rent control requirements for general category tenants, changes to the eligibility requirements for special category tenants, and changes to the benefits which special category tenants receive. She said the commission recommended deletion of the requirement that comparable housing be offered to special category tenants and the requirement that a lifetime lease be offered to special category tenants if comparable housing cannot be offered. Ms. Johnson said the City Council reviewed the Planning Commission recommendations on January 28, 1987. The councilors asked for information about options for modifying the Planning Commission's recommendations concerning relocation, comparable housing, and lifetime leases; the State law which pre-empts the City's ability to control rents during the condominium conversion process; and a comparison of the median income of elderly people to the median income of everyone in the community. Ms. Johnson said options for modifying the Planning Commission's recommendations include: 1) maintaining the comparable housing and lifetime lease provisions and applying them to a limited group of people such as those who would be classified as disabled or elderly using the guidelines recommended by the Planning Commission and who have incomes of 80 percent or less of the median income, 2) applying the comparable housing and lifetime lease provisions to people who are identified as special category tenants in the existing ordinance and who live in apartments when the revisions to the ordinance are adopted, or 3) deleting the comparable housing and lifetime lease provisions and extending the Notice.to Vacate from 180 days to one or two yea rs. Ms. Johnson said an oplnlon of the City Attorney dated February 9, 1987, titled "Applicability of ORS 91.225(2) to Condominium Conversion Ordinance" indicates that the Planning Commission recommendation concerning rent control may be legal. She said the recommendation prohibits unreasonable rent increases for special category tenants during the conversion process. Ms. Johnson distributed two pages titled "Age of Householder by Family Income in 1979 for Oregon, all Counties, and Places over 2500" to the councilors. Ms. Ehrman opened the public hearing. She announced that the council will probably not act on the revisions to the Condominium Conversion Ordinance this evening. Mary Stogsdill, 2556 Dover Drive, read her testimony and then submitted it in writing. She said she managed Forest Village Apartments from November 1982 through February 1984 when the development was owned by CTL Management Company in Portland. She said CTL Company officials filed an application with the City to convert the apartments to condominiums. The process required the MINUTES--Eugene City Council February 9, 1987 Page 2 hiring of a housing consultant who contacted each resident and informed him or her of the protections in the Condominium Conversion Ordinance. ~ Ms. Stogsdill said the Forest Village Apartments was not a project for people with low incomes but many of the residents were eligible for moving expenses and relocation assistance because of the guidelines in the existing Condominium Conversion Ordinance. She said many residents who were happy and satisfied with the complex told her they moved because they needed the money that CTL Management was required to pay for moving assistance. She said City regulations required that she tell prospective tenants about the application to convert the apartments to condominiums and many people decided not to rent Forest Village Apartments when housing was plentiful. Ms. Stogsdill said Forest Village Apartments were not converted to condominiums. She said CTL Management Company officials sold Forest Village Apartments and another apartment complex and decided not to own properties in Eugene because of the stri ngent Ci ty regul at ions. She recommended that comparable housing and lifetime lease provisions be retained for current residents who are elderly or handicapped and have low incomes. She said owners and investors in rental property have been fighting a losing battle in Eugene. She said some owners will lose or sell their investments because of the Tax Reform Act and it is unfair to restrict or remove the options they should have under a free enterprise system. Margot Helphand, 2167 Potter, said she is Program Supervisor for Lane Council of Governments Senior and Disabled Services. She discussed transfer trauma. S~e said forced relocation can result in physical and mental deterioration and death. She said the negative effects of forced relocation can be mitigated if 4It people have choices and control. Ms. Helphand said people who are cognitively impaired, people who are old, people who are poor, people who are in poor physical health, people who do not have support from families, and people who have a negative attitude about the relocation are most likely to suffer relocation trauma. She said the amount of preparation people have for a relocation affects the negative impact of the relocation. She said preparation includes choices of alternatives, orientation to new living conditions, and counseling. She said continuity of environment is important in mitigating transfer trauma. Summarizing, she said there are high risks in the radical, forced relocation of frail and elderly people. John Van Landingham, 1172 West 5th Avenue, said the Planning Commission made its recommendations concerning the Condominium Conversion Ordinance before he was appointed to the commission. He said he has worked for Lane County Legal Aid for nine years specializing in landlord-tenant and low-income housing issues. He said he was very involved in the preparation of the existing Condominium Conversion Ordinance. At that time, he represented several tenants who lived in Willamette Tower which was converted to condominiums. He said he was testifying before the council on behalf of low-income tenants and he would address only the tenant protections in the ordinance. He submitted nine pages of written testimony dated February 9, 1987. e MINUTES--Eugene City Council February 9, 1987 Page 3 e e e Mr. Van Landingham said the purposes of the Condominium Conversion Ordinance are to help displaced people and to protect the city's supply of rental housing. He said the city's rental housing vacancy rate was between one and three percent in 1980, it increased to about 20 percent in the early 1980.s, and it is now under three percent again. He said rents are increasing now. Describing a cycle, he said condominiums sell well when the rental market is tight. Conversion of apartments to condominiums makes the rental market tighter by decreasing the number of rental apartments in the city. A tight rental market makes converting apartments to condominiums profitable and selling the condominiums continues to decrease the supply of rental apartments. Mr. Van Landingham said the State condominium conversion law does not protect tenants. He said State laws are often written for Portland and the Portland vacancy rate is much higher than the Eugene vacancy rate, the percentage of renters in Portland is lower than in Eugene, and Portland has a larger supply of low-cost housing than Eugene has. Mr. Van Landingham said condominium conversions are different from forclosures because more people are displaced. He said Housing and Urban Development (HUD) officials estimate that about 60 percent of the tenants are displaced when apartments are converted to condominiums. He said Lane Tower has 120 apartments and a about 80 people would be looking for other apartments if Lane Tower were converted to condominiums. Mr. Van Landingham said tenants are not usually evicted if they pay the rent and follow the rules but condominium conversions change that expectation. He said a State law prohibits the eviction of tenants in mobil home parks except for good cause unless the owner of the park goes out of business. Consequently, mobile home park tenants have lifetime leases if they pay the rent and follow the rules. He said the State law was enacted because many mobile home park tenants are elderly and have limited incomes, because the expense of relocating from mobile home parks is high, and because the supply of mobile home parks is limited. Mr. Van Landingham said he supports most of the Planning Commission.s recommendations because they simplify the administration of the Condominium Convers ion Ordi nance and because they address the problem of provi di ng benefits to people who do not need them. He said the Planning Commission recommended that the notice requirements in the existing ordinance be retained. The Planning Commission also recommended that moving expenses be paid and assistance in finding comparable hOUSing be given if tenants are classified as special category tenants. He reviewed the eligibility requirements recommended by the Planning Commission and said they will provide benefits to people who need them. Mr. Van Landingham said the recommendations of the Planning Commission are a compromi se that wi 11 make it easier to convert apartments in Eugene to condominiums. He said the recommendations go too far in substituting the services of a relocation specialist for the requirement that tenants be offered comparable housing and in not deciding who should pay for the tenant benefits. He said the Planning Commission recommendation indicates that a MINUTES--Eugene City Council February 9, 1987 Page 4 e developer should try to find similar and available housing instead of offering comparable housing. He said some developers will try harder than others to find similar and available housing and it is important to force a developer to find comparable housing. He said the rental housing market is similar now to the 1980 market and the City should retain the comparable housing requirement to see how it works in a tight rental market. Mr. Van Landingham said tenant displacement is a direct result of converting apartments to condominiums and a developer should pay the costs of relocating tenants. He said payment would be similar to unemployment compensation which requires employers to pay the costs of unemployment regardless of who is at fault. He said the costs of relocating tenants while converting apartments to condominiums is a cost of doing business and is similar to user fees. He said the City cannot pay the relocation costs of converting apartments to condominiums. He said conversion of apartments to condominiums does not add to the housing supply. He offered to help with the results of the revisions to the ordi nance. Joseph Dehn, 5340 Saratoga, said recent trends have been to take away the rights of property owners. He said the Planning Commission1s recommendations will somewhat reverse that trend. He said making the enforcement of contracts and rights to property dependent on the age of people is age discrimination and an unequal application of laws. e Mr. Oehn said rental leases indicate that tenants rent a unit for a specific time and renting property is different from owning property. He said owning property should mean an owner can keep or sell the property as the owner wishes. He said the comparable housing and lifetime lease provisions of the existing ordinance give renters the right to occupy property for the rest of their lives. Mr. Dehn said rental housing in Eugene could be increased by changing the unreasonable restrictions on locating buildings, unreasonable zoning regulations, and unfair subsidies for some types of rental properties. He said an unregulated rental housing market would result in equal supplies of rental and owner-occupied housing. He said the existing controls establish special privileges for a few tenants and cause deterioration of the rental housing market in Eugene. He said drastic rent controls in large cities have almost destroyed the rental housing markets and controls on housing for the elderly discourages the construction of housing which elderly people would find satisfactory. Charles Strong, 1080 Patterson, No. 307, said he moved to Patterson Tower three months ago because of the conven i ence, commun i ty atmosphere, and security. He said he is a member of the Eugene Commission on the Rights of the Aging and was involved in the development of the existing Condominium Conversion Ordinance. He said it has served well for seven years. Mr. Strong said none of the Planning Commission recommendations favor tenants, four recommendations favor tenants and developers equally, and ten recommendations are detrimental to tenants. He said the recommendations favor building owners. He said the existing ordinance deals with human concerns. e MINUTES--Eugene City Council February 9, 1987 Page 5 e e e It does not deal with property concerns. He said the human rights commissions should be involved in changes to the eXisting ordinance. Allison Hassler, 62 East 23rd, said she is a member of the Commission on the Ri ghts of Women whi ch opposes the changes to the tenant protections recommended by the Planning Commission. She said the Commission on the Rights of Women is concerned with the recommendations because many women outlive their husbands, many women live in rental apartments, and many women have low incomes. She said the Planning Commission's recommendations do not reflect the testimony given before the commission. She said elimination of the comparable housing provisions would be devastating and would indicate that Eugene permits substandard housing to accommodate developers. She said elimination of the lifetime lease provisions would indicate that financial profits are more important than human concerns about housing. She urged the council to retain the tenant protections in the existing ordinance. W. Scott Bartlett, 224 Trailside, said the Condominium Conversion Ordinance indictes the priorities and allegiances of the community. He said adoption of the ordinance promised protection to tenants and he wondered why the promise should be changed now. He said the Planning Commission has favored property ownership and property management for the last four years. Mr. Bartlett said the City Council should protect senior citizens and the poor. He said his grandmother benefited from rent control in New York. He urged the council to retain the tenant protections in the existing ordinance. Marie Talbot, 1050 Ferry, said she is 86 years old. She lives at the Eugene Manor. She discussed her love for Eugene and Oregon and the people who live here. She likes the trees. She said she wants to choose her lifestyle. She likes to live at the Eugene Manor. She said it would break her heart to have to leave the Eugene Manor. Jenny Bramley, 1080 Patterson, said she moved to Eugene two years ago. She read from an article that appeared in the Wall Street Journal on June 5, 1985. The article concerned Eugene's economy. She discussed several things that make Eugene attractive to retired people. She said most retired people do not want to invest in condominiums and the adoption of an ordinance that might result in the eviction of retired people would not be a good advertisement for Eugene. She urged retention of the existing ordinance. Margaret Budicki, 1080 Patterson, No. 102, said she is 82 years old. She said a component of comparable housing is the environment created by people who live in a building. For example, people arrange to go to nearby medical doctors. She said potential displacement is disturbing. Jean Beachdel, 2825 Miramonti, said she works with the Senior Law Service Program of Lane County Le9al Aid Servi~e. She said many tenants experienced histeria before the existing ordinance was adopted. She said some tenants have experienced similar anxiety during the past several months. She said tenants who can move will move when asked by a developer to do so. She said a forced move would be life-threatening for some tenants and the ordinance should retain protections for those people. She said elderly, frail people MINUTES--Eugene City Council Februa ry 9, 1987 Page 6 e barely hang on to an independent life and it is very important that they remain in the home to which they have become accustomed. They know who to depend on and where to get help in that home. They will suffer if they must move and a developer should find comparable housing for them or let them remain in their apartments. Ms. Beachdel said she supports comparable housing and lifetime leases when they are needed and there should be no time limit on the search for comparable housing. Eugene McFadden, 1080 Patterson, said he is 87 years old and he and his wife moved to Eugene about two years ago. He said he is not feeble or handicapped and he does not want to invest in a condominium. He discussed the conversion of an apartment complex in Santa Rosa, California. Mr. McFadden said there are 92 apartments in Patterson Towers and he has been told some apartments will sell for $65,000 if the building is converted to condominiums. He discussed the capitalization of Patterson Towers. He said owners take ri sks and shoul d sell if they cannot make money on rental apartments. Helen Swenson, 3545 Wilshire Lane, said she represented the National Association of Retired Federal Employees. She said she is a member of the Citizen Coalition on Condominium Conversions. She said she moved to Eugene six years ago. She said the revisions proposed by the Planning Department will make Eugene less desirable for retired people. She said the revisions will affect many women and they indicate that Eugene does not care about senior women. e Olga Morrison, 1080 Patterson, read from an editorial titled liThe Condominium Quandary" that appeared in The Register-Guard on February 8, 1987. She said there should not be a rush to revise the condominium ordinance. Referring to the Eugene Manor and Lane Tower, she said there would not be sufficient apartments in the other if one of the buildings is converted to condominiums and people would not want to move if they are not certain they could remain in the other building.. She said the three high-rise rental apartment buildings in downtown Eugene are special because many services are available in the buildings and because people can get around town easily from the apartments. Ms. Morrison said retired people are a stable and desirable group. She said funds from the sale of their homes are often invested to provide income. Discussing the solutions suggested in the editorial, she said landlords would find it difficult to rent to desirable tenants if the tenant protections apply only to those people who live in apartments when the revisions to the ordinance are approved. She said the Planning Commission's recommendations would result in healthy tenants with incomes over 50 percent of the median income being evicted in 30 days and, consequently, those people would not rent apartments in buildings that could be converted to condominiums. She said only people who could be classified as special category tenants would move into such buildings. The subsequent reduction in income might encourage property owners to consider converting the building to condominiums. e MINUTES--Eugene City Council February 9, 1987 Page 7 e Ms. Morrison asked if condominiums will enhance the community. She asked if condominium owners maintain the property. She said probably converting apartments to condominiums does not benefit the community and probably many people are adversely affected by the conversions. She said only real estate brokers, mortgage lenders, and some contractors will benefit from changes to the Condominium Conversion Ordinance. Josephine Moore, 1080 Patterson, said she cannot climb up or go down stairs. She must live in a building with an elevator. She said she felt settled after the Condominium Conversion Ordinance was adopted in 1980 and the proposed revisions upset her. John Bauguess, 1576 Walnut, said he is 43 years old. He said the reV1Slons to the Condominium Conversion Ordinance involve a conflict of interest. He said the existing ordinance protects senior citizens living in a high-rise building owned by Rob Bennett, a City Councilor. Mr. Bauguess said people should not be mislead by Mr. Bennett's decision not to vote on the Condominium Conversion Ordinance because Mr. Bennett is an astute manipulator of public processes. Ms. Ehrman asked Mr. Bauguess not to attack city councilors personally. e Mr. Bauguess said he intended to provide information in his testimony. He said Mr. Bennett has acquired public funds for his own economic interests. Mr. Bauguess said the Downtown Athletic Club is the most expensive athletic club in Lane County and Mr. Bennett received close to $2 million in public loans to construct the Downtown Athletic Club. Mr. Bauguess said one reason the City is considering opening Willamette Street to vehicular traffic is to provide better access to the Downtown Athletic Club. He said Mr. Bennett is an example of the "wea lthfare" system that benefi ts people who serve as "pub li c servants. II Mr. Bauguess read from an article that appeared in The The Register-Guard on December 12, 1986, that indicated substantive changes in the Condominium Conversion Ordinance were proposed by Mr. Bennett. Mr. Bauguess said Mr. Bennett stated, III'm the one tinkering with this" at a Planning Commission hearing. Mr. Bauguess said no one should be IItinkering" with the security of senior citizens. He said the existing Condominium Conversion Ordinance should be retained. Aladene Leake, 925 Horn Lane, said she has a business in Eugene that serves many senior citizens. She said some friends had planned to spend the rest of their lives in Willamette Tower and the conversion of the building to condomi ni ums upset them very much. They moved to 01 i ve Pl aza but the gentleman died five months later and the woman left Eugene. Ms. Leake said the parking problems around the downtown high-rise buildings are acute. She suggested people work together to solve the condominium conversion problem. Eugene McFadden, who had testified earlier, said many people in the audience did not agree with the testimony that seemed to vilify Mr. Bennett. e MINUTES--Eugene City Council February 9, 1987 Page 8 ~ Allan Jensen, 907 East 20th Avenue, said he has no financial interest in bUildings that might be converted to condominiums. He said City regulations that dictate what property owners can do with their properties are the reason there is not more secure housing for the elderly in Eugene. Stanley Whitehill, 260 North Adams, said he did not agree with what seemed to be a personal attack on Mr. Bennett. Mr. Whitehill said the Federal Tax Reform Act will increase costs to property owners because taxes will not be as deductable. However, taxes on rental properties will still be deductable. He said prices of condominiums are not as competitive as prices of single-family homes because people have more choices when they buy a home than when a condominium conversion is forced on them. He also said it is difficult for owners to sell condominium units. Mr. Whitehill said handicapped and retired people often live only on their investments and being forced to buy a condominium to continue living in an apartment produces a financial hardship. Fergus McLean, 2920 County Farm Road, said he would discuss ethics in government and providing for Eugene's retirement community as an economic development strategy. He said our society includes private wealth and common wealth and common wealth involves things that concern the public good. He said people are elected to represent us and to protect the common good. He said those people should not consider things related to their private wealth. He said people do not expect the protectors of the common wealth to use their positions to promote their private wealth. e Mr. McLean said Rob Bennett has about $2 million in loans at subsidized interest rates from the City of Eugene and the implications of that fact are disturbing. He said City Manager Micheal Gleason serves at the pleasure of the City Council and is in charge of protecting the City's loans. He said the implications of defaults or problems with'the loans are disturbing. He said the situation erodes public confidence in the government. Mr. McLean said attracting retired people to Eugene is a viable economic strategy. He said people affected by the revisions to the Condominium Conversion Ordinance probably spend more than $500,000 in the community annually. He suggested subsidized City loans be used to build more housing for retired people. He said many things in Eugene can be used to attract retired people to the community and he likes having retired people downtown. David Freeman, 3025 Portland Street, said he has been a businessman for 15 years and understands the need for reasonable profits. However, he does not think City laws should be revised so they negatively affect elderly people. He said many elderly people are afraid of the proposed changes to the Condominium Conversion Ordinance because the people fear losing their sense of "community." He said the existing ordinance led people to think they had securi ty. He suggested the counci 1 reach a compromi se that wi 11 provi de a reasonable profit to developers and guarantee homes and dignity to elderly people. He said he will share some ideas about a compromise. e MINUTES--Eugene City Council February 9, 1987 Page 9 e e e Richard Gold, 1486 East 25th Avenue, said the existing Condominium Conversion Ordinance does not prevent conversions to condominiums and the difference between the existing ordinance and the recommended revisions is the requirement for comparable housing. He wondered where present residents will go if apartment buildings are converted to condominiums. He read from one of President John F. Kennedy's speeches. Ben Taitel, 2115 Brittany Drive, said he was representing the Citizen Coalition on Condominium Conversions. He said Eugeneans pride themselves on the quality of life here. He said the passage of the Condominium Conversion Ordinance protected special category tenants against arbitrary eviction if the tenants could not or did not want to purchase units. He said many old, poor, and disabled people are now worrying about the proposed changes to the ordinance. Mr. Taitel said comparable housing is the most important tenant protection in the existing ordinance. He said comparable housing will be very difficult to find if even one of the three high-rise apartment buildings in Eugene is converted to condominiums. If all three are converted, there will be no comparable housing. Mr. Taitel said high-rise buildings provide security for many older people and elevators are a necessity for some people. He said forced relocation triggers illnesses and debilitation in some older people that necessitates long-term nursing care. He said present tenants fear that changes in the Condominium Conversion Ordinance may make selling the high-rise bUildings to outsiders who might convert them to condominiums easier. Mr. Taitel said members of the Citizen Coalition on Condominium Conversions are glad Rob Bennett has decided not to vote on the Condominium Conversion Ordinance revisions because of a perceived conflict of interest. He asked if approval of the commission's recommendatoions would benefit the city, if approval of the recommendations would send an appropriate signal to retired people, and if the City should renege on the commitment made when the existing ordinance was adopted. He said retention of the tenant protections in the existing ordinance makes sense economically and from a humanitarian point of view. He asked that a member of the Citizen Coalition on Condominium Conversion be invited to participate in deliberations concerning the Condominium Conversion Ordinance. Jack Kapuscinski, 50 Lawrence, said changes to the Condominium Conversion Ordinance could have disastrous physical, physiological, and economical effects on elderly people in the community. He said many people moved to apartments because of the tenant protections in the existing ordinance. He said stable housing is very important and many elderly people need elevators. He said repeal of the comparable housing and lifetime lease provisions in the existing ordinance could result in the eviction of many elderly people if apartments are converted to condominiums. He said elderly people are important to the Eugene's economy. He urged the council to retain the existing ordinance. MINUTES--Eugene City Council February 9, 1987 Page 10 e Grattan Kerans, 1051 Willagillespie, said, "A deal is a deal" and the council should not approve the proposed changes to the Condominium Conversion Ordinance because people have based decisions on the ordinance. He said he has asked that some elements of the existing Eugene ordinance be included in the draft of a Legislative bill. He said people who might to affected by revisions to the ordinance have built the community. Peter Elliot-Wotton, 875 East 32nd Avenue, said he is a member of the Citizen Coalition on Condominium Conversion. He said he used to live in Westport, Connecticut, and he discussed that city. David Oaks, 366 Clark, urged the council to retain the existing Condominium Conversion Ordinance and to retain the comparable housing and lifetime lease provisions if some parts of the ordinance are changed. He said citizens should watch how councilors vote on the recommended changes to the ordinance. Mr. Oaks said the City Council voted against an endorsement of the Nuclear Free Zone Ordinance several months ago. He said the Eugene Public Library is closed on Monday. He wondered if the closure is related to the proposed expansion of Mahlon Sweet Airport. He suggested people present talk about homeless people, injured people, nuclear weapons, and people who need help. He said elderly people present compose an "Elders' Council." He thanked Rob Bennett for making the City Council exciting. e David Zupan, 972 West 4th Avenue, said he has lived in Eugene for about ten years. He said he is ashamed that senior citizens have to attend a public hearing at which the loss of people's homes is considered. He said many people who are not at the hearing are concerned about the proposed revisions to the Condominium Conversion Ordinance. He said he works for an organization that opposes the development of nuclear weapons and he has learned that people are concerned about Eugene's livability. He suggested the council consider making the conversion of apartments to condominiums more difficult. Mr. Zupan said people should be concerned with protecting the city's basic services. He said it win be politically risky for the council to have inappropriate priorities for the city. Catherine Braden, 972 West Fourth Avenue, urged the council not to approved the proposed changes to the Condominium Conversion Ordinance. She said the quality of life includes a safe environment and safe and pleasant living conditions. She said the quality of life in Eugene is lessening. She said it is not fair to subject people to anxiety about the future. She said laws should not be changed to satisfy greed at the expense of residents. Frank Sofler, address unknown, said affordable housing is a national problem. He said conversions of apartments to condominiums will exacerbate the housing problem which should be addressed nationally. He said people should be more important than profit. Michael Gannon, Box 10324, Eugene, said he opposed the Planning Commission's recommendations. He said the large attendance at the hearing indicates that the recommendations are outrageous. He said the council received much e MINUTES--Eugene City Council February 9, 1987 Page 11 e negative testimony about the recommendations and he wondered why the councilors do not talk to the Planning Commissioners about dealing with the community's priorities. He discussed the destruction of trees because of widening 6th and 7th avenues and the Riverfront Research Park. Ms. Ehrman asked Mr. Gannon to confine his testimony to the Condominium Conversion Ordinance and to finish his testimony as soon as possible because the hearing had lasted more than two hours. Mr. Gannon said his criticism of the Planning Commission was pertinent to the Condominium Conversion Ordinance. He said people want councilors who care about the livability of Eugene and who are courteous and consciencious. Glenn Rabenold, 2990 Friendly, said he is pleased by the number of people who attended the hearing. He said he is concerned about the direction of the government. He hopes more elderly people move to Eugene. City Manager Micheal Gleason said the proposed expansion of Mahlon Sweet Airport is not linked to the operation of the Eugene Public Library. There being no additional requests to testify, Ms. Ehrman closed the public hearing. Ms. Schue said the councilors will think about the testimony. She said they have not made up their minds. She said the councilors are seven individuals who will try to work out a compromise. She said she voted for the Condominium Conversion prdinance in 1980 and would like to maintain its best provisions. e Ms. Bascom noted that most people approve of the housekeeping changes to the Condominium Conversion Ordinance recommended by the Planning Commission. She said the deletion of the comparable housing and lifetime lease provisions is not satisfactory and she woul d 1 i ke staff comment about IIgrandmotheri ngll present tenants when the council holds a work session on the ordinance. She said she is also concerned about the other tenant protections in the existing ordinance. Mr. Miller said the council appreciates the oral and written testimony. He said the councilors are concerned about the testimony. Ms. Ehrman thanked those who testified. She briefly discussed the Planning Commission's consideration of the ordinance. Ms. Ehrman recessed the meeting at 8:30 p.m. and reconvened it at 8:40 p.m. II 1. PUBLIC HEARING: DRAFT FISCAL YEAR 1987/88 THROUGH 1992/93 CAPITAL IMPROVEMENT PROGRAM City Manager Micheal Gleason introduced consideration of the draft Capital Improvement Program (CIP) for FY87/88 through FY92/93. Kirk McKinley of the Planning Department gave the staff report. He said the Budget Committee held a public hearing on the CIP on December 9, 1986. Two people testified in e MINUTES--Eugene City Council February 9, 1987 Page 12 e support of the Fern Ridge Bikepath and a Cal Young Neighborhood representative testified in support of the Delta Ponds Hydrological Study. He reviewed the written testimony received by the council from Mary Ann Rombach, Ray Klappenbach, and Monte Marshall. Mr. McKinley said Budget Committee members could not reach a consensus about designating a serial levy as a funding source for the Fire Redeployment Plan, the redesign of Willamette Street between 8th and 10th avenues, the conversion to two-way traffic of Willamette Street between 13th and 20th avenues, the Fern Ridge Bikepath, and a funding strategy for improvements to Mahlon Sweet Airport. He said some committee members pointed out that the redesign of Willamette Street and the conversion of Willamette Street to two-way traffic are in the Urban Renewal Plan Update and the Central Area Transportation Study which the council has not yet considered. Mr. McKinley said the Planning Commission reviewed the CIP. He said the commissioners expressed concerns about the 14 projects in the CIP that are not in adopted City plans. He said the commission recommended that the council adopt the CIP with the assumption that projects will not be implemented unless they are in adopted plans. If the council adopts the CIP, Mr. McKinley suggested the motion indicate that the Asbestos Management project should be moved from the Library projects on page 56 to the Building Upgrade Program of the Public Works Department on page 92, that changes on the CIP Errata Sheet should be incorporated into the document, and that $200,000 for the Willamette Street Redesign/Reconstruction from 8th Avenue to 10th Avenue should be moved from the second year of the CIP to the first year of the CIP. e Answering a question from Ms. Ehrman, Mr. McKinley said the Budget Subcommittee of the Downtown Commission recommended that $200,000 for the Willamette Street Redesign/Reconstruction be available in FY87/88 for feasibility studies and preliminary design work. He said approval of the recommendation would result in $700,000 for the project remaining in FY88/89. Ms. Ehrman opened the public hearing. There being no requests to testify, Ms. Ehrman closed the public hearing. Ms. Schue emphasized that several projects in the CIP have not been approved by the council and several projects are listed as studies in City plans. She emphasized that including projects in the CIP does not guarantee that the projects will be approved by the council. Ms. Bascom said the proposal to open Willamette Street to two-way traffic from 13th to 20th avenues seems to have its own momentum. She said she needs more information about it. She said neither that project nor the opening of Willamette Street to vehicular traffic between 8th and 10th avenues has been approved by the council. She suggested moving those projects into the second year of the CIP so that the council will have considered the Central Area Transportation Study (CATS) and comments at the February 26 public forum on the Urban Renewal Plan Update before making a decision about the projects. e MINUTES--Eugene City Council February 9, 1987 Page 13 e e e Mr. Gleason said the council adopted a work plan which estab1ished a schedule for hearings concerning changes to Willamette Street. He said the Downtown Commissioners will be confused if the schedule is not maintained. Answering questions from Ms. Wooten, Mr. McKinley said the funding for projects in the CIP begins July 1. Consequently, the feasibility study for opening Willamette Street to traffic would not begin before July 1. Ms. Wooten said she is undecided about the opening of Willamette Street to vehicular traffic from 8th to 10th avenues but it seems that the council is being pressured to approve the opening. She said including the project in the CIP seems to be a way of getting the project started before the council has made a decision about it. She suggested the project be delayed in the CIP until the council has made a decision about it. Replying to questions from Mr. Bennett, Mr. McKinley said including projects in the CIP permits work to being on them soon if the projects are approved. He said the opening of Willamette Street will be included in the CATS and Urban Renewal Plan and the council will consider them specifically when it considers those plans. Mr. Gleason added that the inclusion of a project in the CIP does not force or preclude approval of the projects by the council. However, the projects in the CIP are included in the proposed Executive Budget. Mr. Bennett said the Willamette Street projects have been discussed by the council and the schedule is consistent with the discussions. He said the Downtown Commissioners are following the schedule and he is prepared to discuss the projects. Mr. Miller said projects included in the CIP have momentum. He said the council could insert the Willamette Street projects in the CIP after approving them. Mr. Rutan said the council received the CIP some time ago and deletion of the Willamette Street projects would be disconserting. Ms. Schue said the council indicated it would not make a decision about opening up Willamette Street to two-way traffic until it had more information. She said including the project in the CIP indicates a decision has been made. Ms. Ehrman poi nted out that the recommendation to move $200,000 for the redesign/reconstruction of Willamette Street from 8th to 10th avenues had not been discussed by the Budget Committee or the council. Answering questions from Ms. Bascom, Mr. McKinley reviewed the recommendation to move $200,000 for redesign studies of Willamette Street ahead in the CIP. He said a study of converting Willamette Street to two-way traffic from 13th to 20th avenues is in the CATS and the $20,000 in the CIP is for implementing the change if it is approved. Ms. Bascom said the council should respond to the concerns expressed by the Budget Committee about including the Willamette Street projects in the CIP and to the Downtown Commission recommendation about moving $200,000 for the redesign of Willamette Street ahead in the CIP. MINUTES--Eugene City Council February 9, 1987 Page 14 e Ms. Bascom moved, seconded by Mr. Rutan, to adopt the Draft Fiscal Year 1987/88 through 1991/93 Capital Improvement Program subject to the inclusion of the changes indicated on the CIP Errata Sheet and to moving the $20,000 project for converting Willamette Street to two-way traffic from FY87/88 to FY88/89 and to reject the Downtown Commission's recommendation to move $200,000 for the redesign of Willamette Street from FY88/89 to FY88/87. Replying to questions from Ms. Schue, Mr. McKinley reaffirmed that converting Willamette Street to two-way traffic is being studied in the CATS. Restating her motion: Ms. Bascom moved to reject the Downtown Commission's recommendation to move $200,000 for redesigning Wi 1 lamette Street from FY88/89 to FY87/88, to move $20,000 from the conversion of Willamette Street to two-way traffic from FY87/88 to FY88/89, and to adopt the FY87/88 through FY92/93 CIP. Mr. Rutan agreed to the restatement. Mr. Bennett wondered why the council should change the CIP before considering the CATS and the Urban Renewal Plan. Ms. Wooten said she will support an amendment to the CIP if the council approves the redesign of Willamette Street between 8th and 10th avenues. e Until then, she prefers not to have the project in the CIP. Mr. Rutan said he will not support the motion because he would like to have funds designated for the redesign of Willamette Street if the council approves it. Ms. Wooten suggested the councilors vote on the projects and then vote on the CIP. No one objected to her suggestion. The vote on moving $20,000 for the conversion of Willamette Street to two-way traffic from FY87/88 to FY88/89 in the CIP was 4:3 with Councilors Ehrman, Wooten, Bascom, and Miller voting aye and Councilors Schue, Rutan, and Bennett voting nay. Ms. Ehrman declared that part of the motion passed. The vote on rejecting the Downtown Commission's recommendation to move $200,000 for the redesign/reconstruction of Willamette Street from 8th to 10th avenues from FY88/89 to FY87/88 in the CIP was 5:2 with Councilors Ehrman, Schue, Wooten, Bascom, and Miller voting aye and Councilors Rutan and Bennett voting nay. Ms. Ehrman declared that the motion passed and the recommendation was rejected. e MINUTES--Eugene City Council February 9, 1987 Page 15 e The vote to adopt the Draft Fiscal Year 1987/88 through 1992/93 Capital Improvement Program including the changes outlined in the staff notes and on the Errata Sheet and the change approved by the council passed unanimously, 7:0. Ms. Ehrman recessed the meeting of the Eugene City Council and convened a meeting of the Eugene Urban Renewal Agency. IV. EUGENE URBAN RENEWAL AGENCY RESOLUTION CONCERNING DISPOSITION OF REAL PROPERTY City Manager Micheal Gleason said the City Council as the Urban Renewal Agency determines whether properties should be leased and given final approve for disposal of properties. He said the City Manager approves leases. He said Councilor Holmer noted at the council meeting on January 14, 1987, that it is not necessary for the council to review signed leases. Mr. Gleason said the proposed ordinance reflects Councilor Holmer's statement. Res. No. 923--A resolution concerning real property disposal procedures. Ms. Bascom moved, seconded by Mr. Rutan, to adopt the resolution. The motion carrieduananimously, 7:0. Ms. Ehrman adjourned the meeting of the Eugene Urban Renewal Agency and e reconvened the meeting of the Eugene City Council. V. DOWNTOWN DEVELOPMENT DISTRICT TAX LEVY AND ELECTION City Manager Micheal Gleason introduced the item. Res. No. 4020--A resolution allowing a special City election to be conducted by the Lane County Election Depart- ment on March 31, 1987, for the purpose of referring to the legal electors of the city of Eugene a measure authorizing $199,500 tax on ownership of real property in the Downtown Development District. Ms. Bascom moved, seconded by Mr. Rutan, to adopt the resolution. Ms. Wooten said she is concerned about passage of the levy. She encouraged the Development Department to undertake an educational program before the election so the public will understand plans for the levy and the use of the funds. e MINUTES--Eugene City Council February 9, 1987 Page 16 The motion carried unanimously, 7:0. e VI. RESOLUTION CONCERNING SUBMISSION OF A REFUNDING PLAN, APPOINTMENT OF FINANCIAL ADVISOR, AND DESIGNATION OF BOND COUNSEL City Manager Michael Gleason introduced the item. Finance Director Warren Wong gave the staff report. He said passage of the resolution will permit submission to the State Treasurer of a plan to refinance the Community Conference Center Certificates of Participation. He said the certificates were issued for $6.92 million in 1981 at 11.25 percent interest. The certificates were refunded in 1985 because interest rates dropped and the City saved about $300,000. He said interest rates have continued to drop and refinancing the Certificates of Participation again could save the City about $400,000. He said the certificates will not be refinanced until legal issues concerning tax increment financing have been settled. Answering questions from Ms. Bascom and Mr. Bennett, Mr. Wong said the certificates can be refinanced only twice. He said the spread in rates is 300 base points. Res. No. 4021--A resolution approving an advance refunding plan and authorizing submittal of the advance refunding plan to the State Treasurer for his approval, appointing a financial advisor, and designating bond counsel. Ms. Bascom moved, seconded by Mr. Rutan, to adopt the ~ resolution. The motion carried unanimously, 7:0. VII. APPROVAL OF CITY COUNCIL MINUTES OF: MEETINGS OF OCTOBER 8, 1986, AND OCTOBER 13, 1986; LUNCH/WORK SESSION-OF NOVEMBER 12, 1986; DINNER/WORK SESSION OF NOVEMBER 17, 1986; LUNCH/WORK SESSION OF NOVEMBER 19, 1986; DINNER/WORK SESSION OF DECEMBER 15, 1986; MEETING OF JANUARY 5, 1987, JANUARY 7,1987, AND JANUARY 12,1987; LUNCH/WORK SESSION AND MEETING OF JANUARY 14, 1987 Ms. Bascom moved, seconded by Mr. Rutan, to approve the minutes of the City Council meetings of October 8, 1986, October 13, 1986, November 12, 1986, November 17, 1986, November 19, 1986, December 15, 1986, January 5, 1987, January 12, 1987, and and January 14, 1987. The motion carried unanimously. Mr. Bennett abstained from voting on the minutes of October 8 and 13, November 12,17, and 19, and December 15,1986, because he was not on the council then. Ms. Ehrman adjourned the meeting at 9:25 p.m. e Mi c all s n City"Manager (Recorded by Betty Lou Rarick) mncc0209