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HomeMy WebLinkAbout05/14/1990 Meeting ~ e e e ( i M I NUT E S Eugene City Council Joplin/Seeger Room--Community Conference Center May 14, 1990 5:30 p.m. COUNCILORS PRESENT: Mayor Jeff Miller, Emily Schue, Ruth Bascom, Shawn Boles, Freeman Holmer, Roger Rutan, Debra Ehrman. COUNCILORS ABSENT: Rob Bennett and Bobby Green. The adjourned meeting of May 9, 1990, of the Eugene City Council was called to order by His Honor Mayor Jeff Miller. I. WEST UNIVERSITY NEIGHBORHOOD CONSERVATION AND DEVELOPMENT PROJECT Mayor Miller said that his membership on the Northwest Christian College (NCC) Board of Trustees creates the perception of a conflict of interest and indicated that he would not be present when council takes action on this issue. Teresa Bishow, Planning and Development Department, summarized the goals of the West University Neighborhood Conservation and Development Project and its relationship to Statewide Goal 5 with regard to historic resources. She said that the two main project goals were: 1) to identify any conflicts for preserving historic resources in this neighborhood and 2) create a mechanism for the State Historic Preservation Office to determine how Eugene might best manage its historic properties in accordance with the Statewide Goal 5 re- quirements. Ms. Bishow said that the City has conducted a survey of historic properties in the West University area neighborhood. Results of this survey revealed that out of 423 historic properties, 24 were ranked primary historic resourc- es, which means they represent the highest quality of historic resources in that location. An additional 99 properties were ranked as secondary resourc- es and 218 properties were deemed as contributing resources or properties which contribute to the historic character of an area. Responding to a question from Mr. Holmer, Ms. Bishow noted that the State does not require inclusion of the contributing properties within its Goal 5 regulation. In ranking the importance that given historic properties provide to an area, Mr. Boles asked whether consideration was given to natural clusters of con- tributing properties which, in aggregate, might be considered primary re- sources. Ms. Bishow explained that the Historic Review Board (HRB) did consider clusters of contributing properties as more significant than single contributing structures. She noted that it was difficult for the HRB to MINUTES--Eugene City Council Dinner/Work Session May 14, 1990 Page 1 e e e distinguish which contributing properties to actually consider as Goal 5 resources and thus limited the list to those properties ranked as primary. Mike Shellenbarger, HRB Chair, reviewed the recommendations made by the HRB and the Eugene Planning Commission. He said that the HRB and the Planning Commission agree on the importance of the Millrace as a historic resource. They are recommending that work begin on creating a Special Development Zoning District and an Historic District for the Millrace area. These dis- tricts would be designed to encourage economic use of historic structures, enhancement of the Millrace, and balancing both housing and commercial needs of the area. Ms. Bishow noted that in the past, any piece of property which was not a Goal 5 resource would not be addressed. With the recommendation to examine a Special Development District and Historic District, the City can choose to acknowledge the local significance of properties which are not Goal 5 re- sources. This innovative step created great enthusiasm state-wide. Mr. Shellenbarger indicated that parking is a problem in the Millrace area. One of the possible benefits of a Special Development District might be to allow property owners the opportunity to satisfy parking requirements off- site within the district. Mr. Shellenbarger emphasized the tentativeness of this proposal; the HRB and Planning Commission are not certain at this point whether a Special Develop- ment District can be formed. Ms. Bishow prepared the council for possible issues of community concern which might be raised in the public hearing. This issues include concerns surrounding Special Development District boundary lines, the impact of the proposed district on the existing high-density residential zoning, the condi- tion of buildings in the area, and the overall impact that the special dis- trict would have on property uses and values. Ms. Bishow emphasized that the City has made no firm decisions regarding these issues. If a Special Devel- opment District can indeed be formed, the City plans to work closely with property owners to determine the nature and restrictions of activities within the proposed district. Mr. Holmer asked whether the creation of a Special Development District would change the tax status of any of the buildings in the district and whether the types of property uses currently allowed would be retained within the new district. In response, Ms. Bishow said that it is unclear how a Special Development District would affect taxes. She reiterated the importance of property owner involvement in deciding what types of uses will be allowed in that area. Responding to a question from Mr. Boles, Ms. Bishow said that it is her understanding that the University of Oregon is conceptually in support of the Special Development District so long as the University has the opportunity to remain involved in its creation. Mr. Holmer asked about the potential impact this proposal could have on a desired increase in water flow of the Millrace. In response, Mr. MINUTES--Eugene City Council Dinner/Work Session May 14, 1990 Page 2 e e e Shellenbarger said that the opportunity to increase Millrace water flow has not been considered a part of this proposal. Responding to a question from Ms. Bascom, Ms. Bishow said that Sacred Heart has been supportive 'of t~e concept of a historic district in order to resolve issues surrounding the preservation of historic properties currently under its ownership. Christine Taylor, Planning and Development Department, gave a brief slide presentation depicting some of the historic resources in the Millrace area and some of the most significant historic properties in that neighborhood. Regarding the possibility of having a public walkway along the Millrace, Ms. Ehrman asked about the potential problems and conflicts such a walkway would create in terms of property owner rights and safety concerns. Mr. Shellenbarger said that a great deal of negotiation between the City and the property owners would need to take place before the concept of a walkway could be made a reality. II. RIVER ROAD SEWER PROJECT Terry Smith, Deputy Public Works Director, updated the council on the status of the River Road/Santa Clara sewer project. Mr. Smith said that the City Engineer opens bids for the sewer project on May 11, 14, and 15. The apparent low bid for May 11 was 24 percent below the engineer's estimate. Of the seven total bids, two bids were below the esti- mate and five were higher. He noted that this disparity between projected sewer cost and actual bids will obViously have a significant positive impact on final sewer costs. Mr. Smith said that all bidding information will be tabulated once bidding has been completed. As it appears now, total sewer costs seem to be significantly lower than previously expected. Responding to a question from Mr. Boles, Mr. Smith said that once a contract has been signed, the bidder is legally bound to do the job at his estimated cost. Responding to a question from Ms. Ehrman, Mr. Smith said that that City divided sewer construction into three separate basins in an effort to create contract packages which would be of a size that would allow several local contractors the opportunity to bid on the projects. Mr. Smith noted that in response to suggestions made at the public hearing held at North Eugene High School, the County is conducting an independent audit of the City's sewer cost estimate; results will be made available soon. Payment for this audit is being negotiated with the County. Mr. Smith stated that at the council's last work session, the concept of deferring assessments for vacant properties and for large, partially devel- oped lots was presented as a way of addressing affordability concerns. At that time, there was some question about the propriety of providing financial relief for all large lot owners regardless of income. In response to this, the staff has developed a way in which assistance could be provided based on MINUTES--Eugene City Council Dinner/Work Session May 14, 1990 Page 3 e e both the size of the assessment and the property owner income level. Instead of limiting the assessment to some fixed lot size, this option would limit the assessment to a percentage of income and would defer payment on the remaining assessment. The portion of the payment larger than the maximum would be deferred for IS years or until the property is sold or subdivided, whichever occurs first. As is the case with the current deferral program, the deferred payment would accrue five percent simple interest. Mr. Boles asked whether the City has developed any means to respond to moder- ate-income property owners who own large lots who do not wish to sell or subdivide their property. He suggested the possibility of extending the length of sewer payment time for them beyond the IS-year limit. Mr. Smith said that the length of sewer financing is a council decision. Mr. Gleason noted that money which is being used to pay for sewer construction comes from the City's past investments in the River Road/Santa Clara interceptor sewers. Extending the time limit for sewer cost payment would affect the rate at which this initial investment is recovered by the City. Responding to a question from Mr. Holmer, Mr. Smith said that changes in income will be reported on the state income tax form. Should circumstances change, property owners will be allowed to renegotiate their payment sched- ul e. Mr. Smith said that a decision from Lane County regarding its participation in road repairs will be made soon. The use of County Road Funds for road repairs would provide significant relief to property owners. Responding to a question from Mr. Boles, Mr. Smith said that roads will be repaired to at least the same standard that they were before sewer construction. For inter- ested property owners, it might be possible to consider a street upgrade. Mr. Smith indicated that the City has been successful in securing State Revolving loan Funds and a Pollution Control Tax Credit to help reduce total property owner sewer costs. In an effort to protect its bond rating and because sewer costs have been significantly reduced with the advent of the above programs, staff recommends that the council provide for ten-year fi- nancing. Ms. Ehrman expressed concern that even with the outside aid that the City has received to address affordability concerns, monthly sewer costs, particularly for low-income property owners, represent a significant portion of income. Mr. Boles also pointed out that sewer costs are likely to rise in progressing years. While IO-year financing might be feasible this year, he does not want to preclude the use of IS-year financing if needed to absorb higher sewer cost in future years. The council recommended that area residents be limited to 10-year financing at present, but that the possibility of IS-year finanCing remain open for the future. The council unanimously recommended that area residents be offered the large lot deferral program. ~ At 7:15 p.m., Mayor Jeff Miller adjourned the meeting of the Eugene City Council. MINUTES--Eugene City Council Dinner/Work Session May 14, 1990 Page 4 e e e (Recorded by Traci Northman) mncc 051490-530 MINUTES--Eugene City Council Dinner/Work Session . May 14, 1990 Page 5