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HomeMy WebLinkAbout05/08/1989 Meeting (2) . e e M I NUT E S Eugene City Council and Downtown Commission Council Chamber--City Hall May 8, 1989 7:30 p.m. COUNCILORS PRESENT: Ruth Bascom, Robert Bennett, Shawn Boles, Debra Ehrman, Bobby Green, Freeman Holmer, Roger Rutan, Emily Schue. COMMISSIONERS PRESENT: Julie Aspinwall-Lambert, Chair; John Brown, Joy Morrow, Sue Prichard, Mike Schwartz, Mary Young. The regular meeting of the Eugene City Council was called to order by His Honor Mayor Jeff Miller. I. PUBLIC RECOGNITION Mayor Miller recognized the achievement of the Willamette High School cheerleaders in winning a State championship. The school's principal, the group's advisor, and members of the cheerleading squad were introduced and thanked for their contributions. The meeting of the Downtown Commission was called to order by Ms. Aspinwall- Lambert. II. PUBLIC HEARING: DOWNTOWN DEVELOPMENT DISTRICT REDESIGN City Manager Mike Gleason introduced the topic. Scott Luell, Planning and Development Department, gave the staff report. Mr. Luell explained that the Downtown Development District (ODD) was established in 1973 to provide downtown marketing, management, and free customer parking. The district was funded through the ad valorem, gross receipts, and professional taxes. The district has experienced financial problems due to rising costs and flat revenues. In response, expenses were reduced (e.g., parking rentals), which has resulted in design and tax equity problems. The Downtown Development District Review Group (DDDRG) was appointed by the Downtown Commission to develop recommendations that would address the negative financial trends and tax inequities of the district. Mr. Luell outlined those recommendations: 1) All programs, except parking, remain status quo as recommended in the FY90 proposed budget. MINUTES--Eugene City Council May 8, 1989 Page 1 e 2) Establish paid parking in high demand areas to promote turnover. 3) Convert the remaining free parking spaces (approximately 1,000 spaces) to a three-hour free parking limit with citations thereafter. 4) Reduce the Gross Receipts Tax by 20 percent. S) Review the district and its programs within two years of implementation. There being no questions from members of the councilor commission, Mayor Miller opened the public hearing. Margaret Wilson, 223 Conestoga Way, opposed the elimination of free parking in high demand areas downtown and said that doing so would encourage customers to use Valley River Center and the Gateway area instead of downtown. e Tom Slocum, 1950 Graham Drive, encouraged the council to eliminate free parking altogether. He said that the parking district benefits retail business and that the expense of supporting it discourages professional and other business development in the area. Mr. Slocum suggested that those who are employed downtown are downtown retailers' best customers. He referred to the Pankow development as an opportunity to bring more people downtown. Calling the reduction of the gross receipts tax a mistake, Mr. Slocum supported a reduction in the ad valorem tax. Sam Frear, 4734 Brookwood Street, spoke as a representative of the Friends of the Downtown. Mr. Frear described urban renewal and the free parking program as attempts to compete with Valley River Center and said the recommended parking plan will hasten the decline of downtown as a viable retail center by putting merchants at a competitive disadvantage. Mr. Frear suggested that if downtown employees abuse the parking program, regulations should be developed to discourage that misuse. Bill Sweet, 65 West 26th Avenue, spoke as a former downtown business owner and said he had not paid the gross receipts tax because a portion of the tax was being used by a private entity (Downtown Eugene, Inc.), which Mr. Sweet considered inappropriate and possibly illegal. Mr. Sweet expressed concern regarding the use of private security in public areas. He supported the three-hour free parking restriction. Mr. Sweet recommended voting against allowing the ODD to collect taxes. Mr. Sweet referred to lease-holds in the area beneath the Dverpark and asked how the City uses the income from those leases. Referring to surface parking lots at 8th Avenue and Willamette Street and at 11th Avenue and Willamette Street becoming parking structures, Mr. Sweet asked if any City staff member or elected official in the past five years has any direct connection with any company that builds parking structures. e MINUTES--Eugene City Council May 8, 1989 Page 2 e e e Kaylee Brown, 84400 Boods Road) identified herself as a University of Oregon student and private consultant who uses free parking downtown while she attends school. She reported that Lane Transit District informed her that between 600 and 800 University students transfer from downtown to campus daily. She suggested that many of these st~dents park downtown and then ride the bus to campus, and thus contribute to the downtown parking problem. Ms. Brown recommended that a convenient park and ride area be provided for students with bus service to campus at 10-minute intervals. Russ Brink, 138 East Broadway, spoke on behalf of Downtown Eugene) Inc. Board of Directors (DEI). He distributed written testimony in support of the recommendations of the DDDRG. DEI considers available, convenient parking more important than free parking to downtown retail and professional businesses. Mr. Brink supported structuring the downtown district as a IIbenefit" district in which those paying the assessment receive the benefits in the form of programs and projects developed by members of the district (as opposed to the current method in which the public sector controls the funds). Mr. Brink called rent a function of the marketplace and said building owners are unable to pass on all of their expenses to tenants. He requested consideration of a reduction in the ad valorem portion of the tax as well as in the gross receipts tax as a way of addressing concerns with tax inequity. He pointed out that by eliminating abuse of the free parking program, more free parking will actually be available to customers, and added that this should be a point used in promoting the public.s acceptance of the proposed changes. Ruth Miller, 2460 Malabar Drive, spoke as a member of the Friends of Downtown and said she concurred with the comments of Mr. Frear. Ms. Miller read a prepared statement and said she opposed reducing the number of free parking spaces downtown. Calling the three-hour limit a good compromise that will help with enforcement, Ms. Miller said it appeared that the proposed metered parking will result in a $60,000 surplus and a tax cut. Ms. Miller encouraged examination of the Salem parking program as part of an effort to address concerns with equity. There being no further requests to speak, Mayor Miller closed the public hearing. Mr. Luell explained that revenues associated with lease holds in the Parcade and the Overpark and with the rental of parking spaces in those structures are considered income in those particular funds (which are separate enterprise funds). Responding to a question from Mr. Holmer, Mr. Luell added that the revenue is dedicated to expenses associated with the parking garages, specifically operations, maintenance, and replacement. Mr. Luell stated that he was unaware of any connections between City staff members and parking structure construction companies or of any conflicts of interest. MINUTES--Eugene City Council May 8, 1989 Page 3 e e e Mr. Luell agreed with Mr. Brink1s observation that more free parking will be available if abuse is reduced. Mr. Bennett referred to Ms. Miller's comments and asked whether replacement of parking structures could be funded by bonding based on a normal debt service ratio. Mr. Gleason responded by saying there are many different ways of paying for parking structures, one of which is through a fund in which parking spaces are purchased and assessed across a district. That undercuts the ability to lease parking spaces and to sell revenue bonds to build new structures. He said that most parking structures are paid for out of revenue bonds and a parking district with associated leases. Mr. Bennett requested clarification and asked about a normal debt service rate which provides a return on the capital invested in the structure. Mr. Gleason replied that a lease structure designed around the costs of operation, maintenance, and replacement would be considerably higher. Ms. Aspinwall-Lambert said the Downtown Commission would discuss the issue at its meeting May 9. Mayor Miller encouraged members of the public to submit their additional written comments to either the Downtown Commission or the City Council. Eli Hayes, 1969 Harris Street, indicated his desire to speak after the close of the public hearing. The Downtown Commission meeting was adjourned at 8:30 p.m. Councilor Holmer left the meeting at 8:30 p.m. III. CONSIDERATION OF STATE BALLOT MEASURE #1 City Manager Mike Gleason introduced the item. information in councilors' packets and said Ms. interest in discussing whether the City Council the ballot measure. Ms. Schue referred to Ehrman had also expressed an wished to adopt a position on Ms. Schue moved, seconded by Ms. Bascom, to support State Ballot Measure #1 by resolution. Mr. Bennett considered taking a position on this State measure inappropriate because it addresses conditions in other local areas. He encouraged individuals to vote according to their consciences on May 16. Ms. Schue responded that a property tax issue is inevitably tied to City finances and impacts the ability of all forms of local government to raise revenue. She added that the measure is an economic development issue because MINUTES--Eugene City Council May 8, 1989 Page 4 e e e education is related to ability to function in a competitive economic environment. Mr. Boles moved, seconded by Mr. Bennett, to table the issue. The motion passed, 4:3; with Councilors Bennett, Boles, Green, and Rutan voting aye; and Councilors Bascom, Ehrman, and Schue voting nay. Ms. Ehrman pointed out that she had requested information on the ballot measure and not that it be included on the agenda. Mayor Miller expressed his support of State Ballot Measure #1. Ms. Schue announced that Governor Goldschmidt, State Senator Kitzhaber, and State Representative Katz would be in Eugene May 12 and she invited councilors to welcome them at Roosevelt Middle School at 3:30 p.m. The meeting was adjourned to May 10, 1989, at 8:35 p.m. Respec.tfujJ,Y SUb~mitted' 7?//-~ '/~~"'~b Mich'al Gleason, . City Manager (Recorded by Mary Feldman) mncc 050889-730 MINUTES--Eugene City Council May 8, 1989 Page 5