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HomeMy WebLinkAbout03/02/1992 Meeting e e e M I NUT E S Eugene City Council McNutt Room--City Hall March 2, 1992 5:30 p.m. COUNCILORS PRESENT: Shawn Boles, Bobby Green, Ruth Bascom, Debra Ehrman, Paul Nicholson, Kaye Robinette. COUNCILORS ABSENT: Randy MacDonald, Roger Rutan. The regular meeting of March 2, 1992, of the Eugene City Council was called to order by His Honor Mayor Jeff Miller. I. WORK SESSION: HIGHWAY 99/WHITEAKER REVITALIZATION STUDY Jim Croteau, Planning Division, said a Citizen Advisory Committee has worked closely with the study group to develop a detailed recommendation for the Highway 99/Whiteaker Revitalization Study. He recalled that the project started as a result of the impetus of the Highway 99 road improvement project that is going to occur over the next two years. The State is funding most of the project ($4.35 million), with $1 million in County Road Fund money, and $600,00 in assessments to the abutting properties. At Councilor Green's request, the study group also explored the possibility of funding for undergrounding of utilities and enhanced landscaping along Highway 99, given that it is a high priority in the Entrance Beautification Study. Mr. Croteau described the study as an investigation of how the City might fund revital- ization projects that are needed in both the Highway 99 area and the Whiteaker area. Mr. Croteau described the project boundary as the commercial and industrial land along Highway 99, extending from the city limits south of Beltline to the Four Corners area, the Bethel Triangle area, and the Whiteaker neighbor- hood. The appointed citizen advisory committee (CAC) included Councilors Boles and Green, John VanLandingham, Doug Ebbitt, Cheryle Hawkins, Jerry Gilbert, Maggie Chamberlain, Carolyn Frengle, and Jerry Kamp. The report contains the following three funding alternatives: a general obligation bond, a serial levy, and tax increment financing (available through the urban renewal option). Mr. Croteau reviewed a comparison chart of the funding alternatives. Mr. Croteau said the CAC identified the following projects: residential rehabilitation, commercial revitalization, update of the Whiteaker refinement MINUTES--Eugene City Council March 2, 1992 Page 1 . e e plan, the undergrounding of utilities in the Highway 99 area, and road im- provements on Bethel Drive. Mr. Croteau said it is important to note that a serial levy and a general obligation bond can only be used for capital projects, excluding programs such as a residential rehabilitation loan program. Responding to a question from Ms. Bascom, he said that a serial levy is within the Ballot Measure 5 $10 cap because there is no debt issue. The general obligation bond is out- side the cap. He explained that tax increment financing may be used for projects and programs other than capital projects, though only the portion that is debt financing is outside the $10 cap. Mr. Croteau reviewed the CAC's four recommendations on page 7 of the report. He noted two contingencies placed on proceeding with a serial levy or general obligation bond: 1) continue to work with the Eugene Water and Electric Board to obtain funding for burying the utilities underground; and 2) develop a project cost, below the full estimated $3 million, that taxpayers are like- ly to approve in a vote. He noted that the EWEB Board is meeting next week to discuss development of a policy to assist in these types of undergrounding projects. The recommendations of the CAC included proceeding with an update of the Whiteaker Refinement Plan and investigating the need for a land-use plan update in the Bethel Triangle area. Responding to a question from Ms. Bascom, Mr. Croteau said that $12,000-$14,000 of the $125,000 cap for the study group's effort has been spent thus far. He noted that part of that money was to pay for having EWEB proceed with the design work, but the City has yet to enter into a design agreement. In response to another question from Ms. Bascom, Mr. Boles said that the council decided to earmark the money for these two projects because of their importance. Jan Childs, Planning Division Manager, said that in addition to the proposed update of the Whiteaker Neighborhood Plan, two other projects were rated as equally important by the Planning Commission. They are comple- tion of the residential lands study and work required related to code revi- sions for implementation of State Goal 12 Transportation Rule. Mr. Boles said that the CAC couples the Whiteaker Refinement Plan update to an urban renewal district process in response to an issue raised by staff about funding projects that might come out of the plan update through that process. Responding to Mr. Robinette, Mr. Boles said that the $125,000 study funding is earmarked out of the Contingency Fund. Any remaining balance, along with funding out of next fiscal year's budget, will be applied to the refinement plan projects. Ms. Ehrman arrived at the meeting. Mayor Miller explained that the Highway 99 project will go forward as it is already funded. Under discussion is leveraging other projects along with it. MINUTES--Eugene City Council March 2, 1992 Page 2 e He wondered if it were possible to place conduits across the highway to pre- serve the option for undergrounding until additional funding becomes availible. Les Lyle, Public Works, said that this was a possibility. However, the fu- ture project would impact sidewalks and driveways. Mr. Croteau noted that a conduit project would still involve significant costs. Mr. Lyle indicated that US West Communications and TCI Cablevision will not help fund the undergrounding. Mr. Boles expressed concern that the future cost of the beautification project will be higher, making implementation unlikely unless funding assis- tance from EWEB is secured. He deferred the question to Mr. Green, that area's council representative. e Responding to a question from Mr. Nicholson, Mr. Croteau said that in order to fold the undergrounding into the Highway 99 project, the design phase must start immediately. Mr. Lyle said the undergrounding construction is antici- pated to occur late this summer or fall, prior to the City's construction the following summer. City Manager Mike Gleason ascertained that a "go/no-go" decision could be made as late as June. However, the council had to authorize expenditure of $30,000 to keep its options open. That would be spent on the design phase of the project. With regard to funding alternatives, Mr. Gleason said that a decision on urban renewal would be required tonight so that staff can prepare a Urban Renewal Plan for the council's approval. The other options are more complicated because they would go on the November ballot, at which time undergrounding should have been completed. In response to Mayor Miller, Mr. Gleason said that the urban renewal option would involve creating a district, borrowing the money, and then paying it back later. Responding to a question from Ms. Ehrman, Mr. Croteau said that under-ground- ing is required in new street construction; in cases where there is a recon- struction for road widening, the utilities are asked to move their facilities out of the way, but are not required to put them underground. He noted an- other future major project where the City will be facing the same issue is West 11th Avenue. Ms. Ehrman wondered if it were possible to do a serial levy for undergrounding projects communitywide. Mr. Boles said that EWEB is Willing to consider an undergrounding policy for specific projects but do not have a revenue stream to support all projects of that nature. He noted that maintaining underground utilities is more expen- sive than those above ground. Mr. Nicholson said the urban renewal option seemed an arbitrary use of the mechanism. Urban renewal, he added, is usually used to attack urban blight e MINUTES--Eugene City Council March 2, 1992 Page 3 e e e with a natural boundary. He felt it would be a difficult option to defend. Mr. Nicholson expressed confidence in the public's willingness to fund well thought-out and well-presented programs. Mr. Robinette felt it an awkward time to ask voters to fund this, and he favored the urban renewal option. Mr. Gleason suggested that the council authorize $30,000 for design of the project and refer the question of forming an urban renewal district to the voters in June. A "yes" outcome could require another vote if the council moved ahead with an urban renewal district and a referendum were filed. Several councilors expressed concern with the timing of the project in light of the Eugene Decisions process. Mr. Boles said voters would be confused with a pre-district and post-district referendum. He suggested staff figure the opportunity costs for a year's delay on the highway proposal so the project would naturally be embedded in the Eugene Decisions process. Mr. Lyle expressed concern that the City's budget would not be able to sup- port a delay. Mr. Gleason estimated the cost of delaying the highway con- struction project a year, accounting for inflation, at $800,000. Ms. Bascom moved, seconded by Mr. Green, that the council move forward with the Highway 99 project on schedule. Mr. Boles moved, seconded by Mr. Nicholson, that the motion be amended to include direction for update of the Whiteaker Re- finement Plan and allocating the remaining contingency to defray the costs of the study. The motion to amend the main motion passed 5:1; Ms. Bascom opposed. The main motion passed unanimously, 6:0. Mr. Green moved, seconded by Ms. Bascom, that staff be direct- ed to proceed with tax increment financing for the Highway 99 utility undergrounding. The motion passed 4:3; with Ms. Ehrman, Mr. Boles, and Mr. Nicholson opposed and Mayor Miller breaking the tie. Mr. Gleason said that forming an urban renewal district would reduce the $125,000 to almost nothing. He also expressed trepidation at forming a dis- trict on a split council vote. Mr. Green moved, seconded by Ms. Ehrman, to reconsider his motion. The motion passed 5:1; Mr. Robinette opposed. The main motion (to approve a tax increment district) failed 2:4; Mr. Robinette and Ms. Bascom voting yes. MINUTES--Eugene City Council March 2, 1992 Page 4 . II. WORK SESSION: EUGENE COMMERCIAL lANDS STUDY Teresa Bishow, Planning and Development Department, reported that if adopted, the Eugene Commercial lands Study would provide clearer policy direction concerning the use and supply of commercial land; promote redevelopment and effective use of public infrastructure; establish that when new commercial sites are evaluated, the City consider the needs of local residents for retail and services as well as opportunities for redevelopment in existing commercial areas; and create a framework for changes to be made to the zoning ordinance and other City regulations affecting commercial lands. Ms. Bishow said that the council will join the lane County Board of Commis- sioners in a joint public hearing on the study on April 8. She noted that the study was recommended for approval by both the Eugene and lane County Planning Commissions without any recommended changes. On February 11, she said, highlights of the plan were presented to the Downtown Commission. At the request of Councilor Rutan, the Downtown Commission is scheduled to con- duct a more thorough review at the end of March. Ms. Bishow said testimony on April 8 is expected from the Chamber of Commerce and league of Women Vot- ers. She noted that the City of Springfield chose not to be involved in the plan. e Ms. Bascom asked John Vanlandingham, Planning Commissioner, to comment on the letter from Al Johnson attached to the packet regarding land in South Eugene needed for affordable housing that has been designated as commercial. Mr. Vanlandingham shared Mr. Johnson's concern, but noted that the determination of specific sites to convert to commercial use has not been made at this time. Ms. Bishow explained that the study says that up to 15 acres of land currently in residential use within the south Eugene area could be converted to neighborhood commercial use. She noted that there is no vacant land available for commercial development in south Eugene. Mr. Nicholson agreed with Mr. Johnson's letter and also expressed concern with the removal of the minimum surface parking element. He said it was not intended to be a punitive measure, but rather an acknowledgment that this is an urban center and compact growth requires standards that are compact. Ms. Bascom said that the Housing Policy Board has identified affordable hous- ing sites in south Eugene and is disappointed that this is not a strong ele- ment in the study. Mr. Boles said that Mr. Johnson previously raised the issue of private lease restrictions in malls that preclude building within a set area from the cur- rent lessee's property or place of business. He said information requested from the City's Attorney's Office during the council's work session on this topic has not been received, making a response difficult without that infor- mation at hand. Ms. Childs said staff would make every effort to get that information mailed to councilors before the April 8 hearing. e MINUTES--Eugene City Council March 2, 1992 Page 5 e e e Mayor Miller asked councilors to bring up items for clarification or ask for additional materials prior to the public hearing. Responding to a question from Mr. Boles, Ms. Bishow said that the Commercial Lands Study task force was not asked to look at the design of the study; that element was referred to the Planning Commission. She noted, however, that a group of local architects has provided comments on the design. Ms. Bishow said the question was to what degree the City should be involved in commer- cial design and suggests some approaches. Mr. Boles took exception to lan- guage in the study that "encourages" things, rather than ensures things will happen. Mr. Nicholson expressed disappointment that the study does not reflect public testimony asking for more stringent commercial design standards. Ms. Bishow said that those concerns are addressed in the study such as on Page 111-31, Policy 23, and the related strategies on the next page. Saying that implementing design standards would increase costs for commercial development, Mayor Miller asked if anyone had considered what the new costs will be. Ms. Bishow said staff will provide that information prior to the public hearing. Mr. Boles said that it is a matter of emphasizing quality or cost reduction. He suggested staff look at those communities that have instituted design standards to see what the consequences have been. III. WORK SESSION: WEST EUGENE WETLANDS Neil Bjorklund, Planning Division, introduced members of the staff group that worked on the plan. Mayor Miller said the staff involved in this project had received rave re- views from their counterparts in Washington DC. Mr. Bjorklund said there has been much community support for the project. Mr. Bjorklund said the draft plan was released along with a technical report in May 1991. A public hearing garnered much comment, mostly positive. He said the main substantive issue was buffer provisions, protecting an area outside the wetland boundary as a means of protecting water quality and wet- land values. Staff worked with the comments and negotiated a compromise that satisfied all parties. The Federal and State regulatory agencies gave their input as well. The staff team received much praise from councilors, saying the quality of work reflected by the report enhances the City's dealings with other govern- mental agencies. MINUTES--Eugene City Council March 2, 1992 Page 6 4It The council meeting adjourned at 7:25 p.m. ~~ Micheal Gleas City Manager (Recorded by Yolanda Paule) MNCC 030292 e e MINUTES--Eugene City Council March 2, 1992 Page 7