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HomeMy WebLinkAbout05/17/1989 Meeting e e e M I NUT E S Eugene City Council McNutt Room--City Hall May 17, 1989 11:30 a.m. COUNCILORS PRESENT: Ruth Bascom, Rob Bennett, Shawn Boles, Debra Ehrman, Bobby Green, Freeman Holmer, Roger Rutan, Emily Schue. The adjourned meeting of May la, 1989, of the Eugene City Council was called to order by Council President Bascom. I. ITEMS FROM THE MAYOR, CITY COUNCIL, AND CITY MANAGER A. Local Sports Council Mr. Rutan said he has been working with Ernie Drapela, Director of Parks and Recreation for the City, to see if there is interest among sports organizations in the community to form a consortium. The purpose of the organization would be to recruit, conduct, and organize sports events in the community. He said there seems to be a lot of interest in a sports consortium. Mr. Rutan said that once the sports council is functioning, the City will drop its lead in the council and become an equal participant with the other organizations involved. He emphasized that the City will probably have an ongoing role in the sports council, possibly through the allocation of room tax moneys to the organization. Mr. Holmer asked how the sports council would use room tax revenues. Mr. Rutan said the purpose of the Room Tax Fund is to fill hotel/motel rooms. He said the sports council might request room tax moneys for the promotion and recruitment of sporting events to the community which would help fill local hotel/motel rooms. B. Council Policy on Annexation Ms. Schue said the bill proposing to get rid of local boundary commissions passed the State House of Representatives by a wide margin. It is now before a Senate committee chaired by Senator Otto. Ms. Schue attended a recent meeting of that Senate committee; she said it was made very clear at that meeting that the desire to repeal boundary commissions is a response to the annexation policies of the City of Eugene. Noting how complicated annexation issues can be, and that there are several new members on the council, Ms. Schue suggested that the council hold a work session to review its annexation policies. Mr. Gleason said the council ;s scheduled to have several discussions on annexations between May and July. MINUTES--Eugene City Council May 17, 1989 Page 1 e Mr. Rutan agreed with Ms. Schue on the importance of briefing all councilors on annexation issues and reviewing the City's current annexation policies. He did not feel the council could hold effective discussions of this nature, however, while the State Legislature is in session. Mr. Holmer suggested that the council's discussions on annexation involve participants from outside the City so that the council can explore a variety of perspectives on annexation. He mentioned Mr. Cornacchia as one example. C. Role of the Downtown Commission Mr. Holmer said that at a recent meeting of the Downtown Commission, members expressed concern about their role in City government. In particular, the commission was concerned about the way the City engages in development projects. When the council became the urban renewal agency for the city, the role of the Downtown Commission was created. Mr. Holmer said the commission feels it is removed from the decision-making process, in which they have a large investment. One illustration of this is that the proposed St. Laurent and Pankow projects would utilize a substantial portion of funds, not all of which are tax increment funds. The Downtown Commission feels this depletes the resources available to address issues in the downtown area. e Ms. Bascom said the Cultural Affairs Commission has requested a joint meeting with the council and asked if councilors had any objections. Ms. Schue and Mr. Holmer both felt the council should discuss the role of the Cultural Affairs Commission as well' as that of the Downtown Commission. D. Trends in Local Job Creation Mr. Bennett said that in the past, the council has had significant discussions about the types of new jobs being created and what kind of industry the council should be trying to facilitate. With this in mind, he read the following statement for the record (from the May/June 1989 issue of NETMA newsletter, produced by the City's Business Assistance Team): "Most of the new jobs created in Oregon since 1982 have been higher-paying jobs in professional/technical occupations. New jobs have actually helped raised earned income levels in the state. The notion that most new jobs are being created in low-paying service work is a "myth." All kinds of occupations are found in service industries including a considerable number of professional/technical occupations like computer programmers and accountants. While there has been some loss of earning power when comparing 1979 earnings to 1987 inflation-adjusted earnings, new jobs are not to blame. In fact, they have helped raise earned income levels. It is the quality of the "work force," not the quality of "new jobs," that present obstacles to the Oregon comeback. As employers find a need to cut labor costs and at the same time increase productivity, more skilled workers are needed. The skill shift towards professional/technical occupations is dramatic. From 1979 to 1986, over 57,000 new professional and technical jobs were created. Sales jobs have also exploded, but most of this increase is in higher-skill positions requiring marketing know-how and offering higher wages and commissions. - MINUTES--Eugene City Council May 17, 1989 Page 2 e Oregon's new jobs are not holding back economic recovery; the major labor force problem facing Oregon is the quality of the work force, not the quality of the new jobs being created." Mr. Bennett said he would like to know whether this trend in job creation is also true for Lane County. In addition, he said he would like the council to discuss ways that this information could be reflected in council policies. Ms. Bascom said she would like verification of this information. Mr. Boles said this statement embodies an implicit assumption that labor is a cost to be contained rather than an asset to be enhanced. He said there is evidence that if labor is treated as an asset to be enhanced, the quality of the work force increases. Conversely, if the work force is seen as a cost to be contained, the quality of the work force decreases. E. Process For Staff Research on City Bond Financing Mr. Bennett said the focus of the Social Goals Committee is housing. He felt this committee should be informed about any inquiries which relate to that goal. In particular, Mr. Bennett felt the committee should have been informed earlier about staff research on City bond financing for a proposed expansion of the Ya-Po-Ah Terrace. He requested that future inquiries be brought before the Social Goals Committee before much staff time is spent researching the inquiry. e F. Cruising in Skinner Butte Park Ms. Ehrman said she had been contacted by a constituent about cruising activity in Skinner Butte Park. She suggested that the area be evaluated as a possible location for anti-cruising signs. Mr. Gleason said staff would research the issue. He added that the problem is probably one of park utilization after hours rather than cruising. President Bascom recessed the meeting of the Eugene City Council and called to order the meeting of the Eugene Renewal Agency. II. MEMORANDUM OF UNDERSTANDING CONCERNING THE 11TH AND WILLAMETTE SITE Bob Hibschman, Planning and Development Department, gave the staff report. He noted that councilors had received a revised version of the draft memorandum of understanding. Mr. Hibschman explained that the revised version of the agreement deletes reference to the City, which does not need to be involved since this project will not receive a loan from the Parking Fund. All terms in the agreement are between the St. Laurent Development Company and the Eugene Renewal Agency (ERA). Ms. Ehrman asked what site improvements the ERA will be providing for this project. Mr. Hibschman said staff anticipates $40,000-$50,000 worth of site improvements, including rebuilding of the alleys after construction, e MINUTES--Eugene City Council May 17, 1989 Page 3 e development of sidewalks on 11th Avenue in front of the project, and possible streetscape improvements on Willamette Street to complement the building. Mr. Rutan asked what the balance of the Tax Allocation Fund will be after loans have been made to the Pankow and St. Laurent development companies. Mr. Hibschman said approximately $1.5 million will remain in the fund to be used as additional support for buildings in the downtown area which are undergoing rehabilitation or change of use, and to cover other site-development costs associated with the Pankow project. He said upon completion, the St. Laurent project is expected to have an annual flow of approximately $160,000-$170,000. Mr. Boles thought the council should be clear in the memorandum of understanding about whether it intends to allow a waiver of interest accrued on the loan from the Tax Allocation Fund or to permit deferred payment. Mr. Gleason emphasized that the points laid out in the memorandum of understanding are the preliminary deal points; the ERA will have an opportunity to approve the actual development agreement. e Mr. Gleason explained the reason for including the possibility of a waiver in the memorandum of understanding. He said, unlike the other public parking facilities that the City has developed, these structures will be paid for by the market. If the parking spaces can be leased at a market rate that is high enough to cover the costs of principal, interest, and taxes, then the developer will pay all of these. If not, the interest may be waived, and the developer will have to pay at least interest and taxes. Mr. Gleason said it is impossible to know at this point whether the market value of the spaces will cover the principal, interest, and taxes for the structure. He added that the City's preferred position will be to defer the interest on the loan; the last resort will be to waive it. Mr. Bennett pointed out that a developer cannot practically develop housing in the downtown area without also providing parking. In addition, once this parking has been provided, it is not practical to make it available to the public for security reasons. Mr. Rutan moved, seconded by Ms. Schue, to authorize the City Manager to execute the memorandum of understanding with the St. Laurent Development company on behalf of the Eugene Renewal Agency. Mr. Green asked if the rental rate for the housing in this project will be competitive. He emphasized that the goal of the council is to encourage housing in the downtown core and pointed out that merely providing housing units will not meet this goal; the rents must be reasonable if people are to occupy the units. Mr. Green expressed concern that the housing portion of the project would remain unoccupied. Mr. Hibschman said staff looked at housing survey information for the city when developing this agreement. He said both staff and the developer believe there is a demand for the type of housing planned for the project, at the anticipated rental rates. e MINUTES--Eugene City Council May 17, 1989 Page 4 e Mr. Gleason said that, as a rule, new market-rate housing in the downtown core will be rented at higher rates because of the extra costs associated with high-density development and the provision of parking. He said for this reason, the council should not expect to see low-income housing developed in the core area. Instead, this project will generate funds to develop low-income housing in other areas of the City. Wendy St. Laurent, Development Director for St. Laurent Development Company, explained that there are Federal grants available for cities with a population over 300,000, which subsidize the construction of low- and moderate-income housing in core areas. She said that, absent subsidies such as this, developers are forced to construct housing for higher-income levels in order to cover the high construction costs. Answering a question from Mr. Holmer, Mr. Hibschman said the 70 parking spaces being created by the developer will not meet the parking needs for the entire project. As a result, staff is anticipating the future sale of 50 monthly parking permits somewhere in the parking system to the developer. He said these negotiations are separate from the memorandum of understanding. Responding to a question from Mr. Holmer, Mr. Sercombe said that according to the memorandum of understanding, the question of whether the interest on the loan from the Tax Allocation Fund will be payed or waived is subject to negotiation. e The motion passed 6:1, with Mr. Bennett, Mr. Boles, Ms. Ehrman, Mr.'Green, Ms. Schue, and Mr. Rutan voting in favor and Mr. Holmer voting against. Mr. Holmer said he voted against the motion because the Chair cut off discussion on the issue prematurely. President Bascom adjourned the meeting of the Eugene Renewal Agency and reconvened the meeting of the Eugene City Council. III. REPORT ON SELECTIVE TRAFFIC ENFORCEMENT Police Lieutenant Dick Loveall gave the staff report. He said the traffic enforcement team is made up of one sergeant and five officers, all of whom ride motorcycles which are easier to maneuver in heavy traffic. The goal of the traffic unit is to save lives and property and to gain compliance with traffic laws. When issuing citations, the traffic enforcement officers emphasize traffic infractions such as violations of basic rules and traffic signal violations. The officers also enforce school zone and school bus violations, as well as patrolling the bicycle paths. In addition, emphasis is given to enforcement during the heaviest traffic periods. Forty percent of all traffic citations issued for the City are issued by the traffic enforcement unit. The officers also respond to citizen complaints. Lieutenant Loveall said because of the large number of complaints, the e MINUTES--Eugene City Council May 17, 1989 Page 5 e traffic enforcement officers feel they are not able to respond as well as they would like. In June, traffic enforcement will be expanded to weekends. In addition, the unit should provide better coverage of rushhour traffic, and response time to accident-related violations should improve. Lieutenant Loveall said the traffic enforcement unit also plans to implement a public education program. Lieutenant Loveall said that at this point, there is no firm data establishing a correlation between the number of traffic citations issued and the accident rate. He said experience indicates that they are inversely related. Lieutenant Loveall said the traffic control officers intend to work more closely with the City engineering staff to correlate enforcement activity to accidents. Ms. Schue was interested in statistics which would indicate whether the level of enforcement affects the accident rate. Bob Noble, Transportation Division, explained that these statistics are very hard to collect because the police do not investigate every accident in the city of Eugene. Without investigations, it is impossible to know the cause of the accident. Mr. Noble assured Ms. Schue that staff would attempt to collect data indicating a correlation between the accident rate and traffic enforcement over the next few months. Ms. Ehrman asked if consideration has been given to ralslng the speed limit on some city streets. Mr. Noble said raising speed zones can be very controversial, especially when it involves a residential or collector street. He said staff would like to hold a work session with the council on the tit classification of streets and speed zone issues. IV. WORK SESSION: ORDINANCE CONCERNING MOBILE HOME PARK CONVERSIONS Robin Johnson, Housing Consultant for the City, gave the staff report. The Planning Commission began to review the issues regarding mobile home park tenant and owner displacement in the spring of 1988. The intent of the ordinance is to help tenants facing displacement caused by park closures due to the change of use from residential to non-residential or commercial or industrial. She said the problem was created in the 1950s and 1960s when cities allowed mobile homes and/or trailer parks as interim uses in commercial or industrial zones. Ms. Johnson there are 18 parks, with a total of 588 spaces, located in Eugene and Glenwood. The housing located in these parks is part of the City's low-income housing stock. It is occupied primarily by low-income households, a great number of which are elderly. A forced move caused by conversion could cause grave financial problems for these tenants. Moving a mobile home can cost between $2,000 and $2,500, depending on the width. In addition, Ms. Johnson said it is very difficult for elderly and disabled residents to move. Ms. Johnson said the draft Mobile Home Park Conversion Ordinance is very similar to the Condominium Conversion Ordinance. She reviewed the major provisions in the ordinance. She noted that the proposed ordinance goes e MINUTES--Eugene City Council May 17, 1989 Page 6 e beyond the existing State law and staff feels it is complementary to that law. Ms. Johnson said Senate Bill 3280 would change the situation surrounding mobile home park displacement. The owner would be required to give 12 months. notice to the tenant. If the tenant moves within six months, his or her relocation expenses would be paid by the owner. Ms. Johnson said one provision in this bill would require the City to pay relocation costs if the City passed an ordinance, order, or resolution that would cause a park closure. The City has taken a position against this bill. Mr. Rutan asked about the rationale for granting moving expenses to a non-resident owner who rents the mobile home to a tenant. John VanLandingham, Planning Commissioner, said the way to preserve low-income housing stock is to move it. The commission is trying to help preserve the use by encouraging it to be moved elsewhere. He did not feel this provision would help subsidize an investment corporation because such a group probably would not fall into the low-income category and would not, therefore, be eligible for moving expenses. Responding to a question from Mr. Rutan, Ms. Johnson said if a mobile home is immovable, the owner could get the salvage value for the home. The tenant and possessions would then be moved into other housing. e Mr. Rutan expressed concern that the ordinance is targeted to certain mobile home parks in certain land use areas, which are defined as "at risk.1I He was also concerned that a number of bills at the State Legislature could affect the proposed ordinance. Mr. Holmer said the recent mobile home park conversion at Delta Villa was dealt with in ways similar to those provided in the ordinance (e.g., relocation assistance and assistance in meeting moving expenses). He felt successful resolution of the issues surrounding that conversion was possible because the owner was considerate of the problems faced by the tenants. Mr. Holmer said the question the council must answer is whether the City really needs this ordinance. He felt the City would benefit from the ordinance which would address mobile home park conversions in the most effective way possible. Mr. Bennett expressed his opposition to the ordinance. He said the question is not whether there is a need to help tenants displaced by mobile home park conversions, because the need is unquestionable. The question is who should pay for the expense of relocation. Mr. Bennett felt that the community, rather than the property owner, should take on the responsibility for helping displaced tenants of mobile home parks. Responding to Mr. Bennett, Mr. Boles said he assumes that if this ordinance were adopted, the property owner would arrange to recover the costs associated with displacement. e MINUTES--Eugene City Council May 17, 1989 Page 7 e e e Mr. Tollenaar, a member of the Planning Commission, said that the ordinance before the council is an example of long-range planning. He also noted that the term lIat risk" is not the best way to describe the mobile home parks to which this ordinance would apply. The term gives the sense that parks are in imminent danger of conversion. Mr. Tollenaar said a survey of park owners indicated that most owners did not have plans to convert their parks and said the term lIat risk,1I therefore, causes unnecessary worry for mobile home park tenants. At 1:25 p.m., the meeting adjourned to May 22, 1989. Respectfully su~:~t~, ~'~'~." ......,L ~,:,,-::/ //C ,0'.>' i'/'I,' '/ .t$"""'~"""~"'+'A;\';'''' ..r"/' ~"" ,..-- '" \' .. .., Mi c ea 1 Gl easor/'~ " City Manager (Recorded by Tanya Northman) MNCC 051789 MINUTES--Eugene City Council May 17, 1989 Page 8