HomeMy WebLinkAboutItem B: Joint Meeting with EWEB to Discuss Riverfront Property
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Joint Work Session: Discussion of Planning Process for Eugene Water & Electric Board
Riverfront Property
Meeting Date: February 12, 2007 Agenda Item Number: B
City of Eugene Department: City Manager’s Office Staff Contact: Angel Jones
www.eugene-or.gov Contact Telephone Number: 682-5336
Eugene Water and Electric Board: Staff Contact: Debra Smith
www.eweb.org Contact Telephone Number: 484-2411, ext 3102
ISSUE STATEMENT
During a joint meeting of Eugene Water and Electric Board (EWEB) Commissioners and City Council
at EWEB on November 15, 2006, elected officials from the City and EWEB identified the need for
additional opportunities to discuss current and emerging issues, such as the future of the EWEB
riverfront site. This agenda item summary provides information regarding ongoing efforts to plan for
the future of the EWEB riverfront property, a key site in our downtown. The AIS has been prepared by
staff from the City of Eugene and EWEB.
BACKGROUND
Discussions concerning the redevelopment of the EWEB riverfront site have been ongoing for many
years. (See Attachment A for a map of EWEB riverfront property holdings.) In 1997, prompted by
studies indicating the need to upgrade the operations buildings to meet earthquake standards, EWEB
authorized an economic cost analysis of retaining utility operations and administration on the current site
versus complete or partial relocation. Based on the study’s conclusions, EWEB initiated steps to
purchase property and relocate the utility facility.
In 1999, the City began work on the Downtown Vision, with representation from EWEB as one of the
key stakeholders. Incorporating significant public participation, the Downtown Vision promotes an
enhanced connection between downtown and the river and some level of urban development along the
riverfront. Building upon the vision, in 2004, City Council adopted the Downtown Plan. The plan calls
for the creation of a master plan before the EWEB riverfront property can be redeveloped for a non-
utility purpose, and includes criteria for the approval of that master plan. Also in 2004, the EWEB
Board authorized the purchase of 47 acres along Roosevelt Boulevard. In 2006, EWEB began to
develop the preliminary design and cost estimates necessary to move utility operations to the new site.
Space has been reserved on the site for the possible relocation of EWEB’s administration.
EWEB staff and the City’s Planning and Development staff have worked together since 2004 on
strategies to address the redevelopment and reuse of the EWEB riverfront property. The primary
concerns are planning issues (including land use applications required for redevelopment), sale of the
EWEB property, and the master planning process and timing implications, as discussed below.
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Planning Issues
On April 12, 2004, City Council adopted the updated Downtown Plan policies as a refinement of the
Metro Plan. Policy 3 on Page 29 of the plan pertains to the redevelopment of the EWEB property. The
same language was added to the Eugene Code as section 9.9540. The policy and code section stipulate
that approval of a master plan for the EWEB riverfront property is required before any redevelopment,
land use application, rezoning, Metro Plan or refinement plan amendment is approved for uses not
associated with EWEB functions. The policy is quoted in full below, under the “Related City Policies”
section.
The required master plan is a Type II land use application, with review and approval at a City staff level
and an appeal process before a hearings official. Since the majority of the property is zoned public land
and designated for Heavy Industrial use, a rezoning application and a Metro Plan Amendment are
required for the property to be sold and redeveloped for another use. Similar to the master plan
requirement, the rezoning application can be approved by staff. However, the Metro Plan amendment
must be approved by the City Council, after public hearings before the Planning Commission and City
Council. EWEB could elect to have the master plan reviewed concurrently with all other required
applications, including the Metro Plan and rezoning applications, or the master plan could be approved
prior to the Metro Plan application.
Sale of EWEB Property
Based on its internal financial analysis, EWEB has determined that it needs to sell at least a portion of
the riverfront property to fund relocation to the Roosevelt site. Attachment B indicates the property that
EWEB is considering selling. The property for sale would likely exclude the existing steam plant, the
substation area to the southeast, and the administration building and plaza to the northwest. Since a lot
line adjustment application would be required to create the tax lots available for sale, EWEB would need
to address the requirements for a master plan prior to closing on the sale of any of its riverfront property.
EWEB has the sole authority to determine whether to sell EWEB property and when to declare the
property surplus. A declaration of surplus is made by a majority vote of the Board approving a
resolution declaring a parcel surplus and authorizing the General Manager to begin disposal of the
property. EWEB must then offer the City the first opportunity to acquire the property. EC 2.196 was
added to the Code in 1987 and authorizes the EWEB Board to “dispose of real property not needed for
utility purposes in accordance with state law.” That power was conditioned, however, upon granting the
City “the opportunity to obtain the property for other municipal purposes by notifying the City Manager
of its availability.” EWEB must also obtain approval from the City Council for any long-term debt that
EWEB intends to issue for construction financing.
If the City wants to acquire the property, the City Manager must request negotiations within 30 days of
initial notification. The City Manager and the EWEB General Manager would then negotiate an
agreement to compensate EWEB for the property. The agreed transfer and compensation must be
completed within five years from the date the City Manager notifies EWEB of the City’s interest in
acquiring the property. If the City Manager does not request negotiations, or the transfer and
compensation is not completed within five years, EWEB may dispose of the property in any manner it
deems appropriate. The City may also choose to waive its right to purchase the site prior to the end of
the option period.
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The value of the property is not easily determined. Recent commercial appraisals downtown have
assumed values between $34 and $39 per square foot. However, the property is unique in downtown,
and the value will be largely determined by the future use, as illustrated by an approved master plan.
Master Planning Process and Timing Implications
EWEB and City staff discussed a number of strategies for the redevelopment of the riverfront property,
focusing on two key issues: 1) when the master planning process occurs and 2) when the property is
declared surplus. Working together, staff from both organizations outlined four main strategies. The
first strategy is preferred by EWEB and City staff.
Strategy 1. Initiate Master Planning
EWEB could initiate a master planning process that involves the City and the community. EWEB
could declare the property surplus at any time during this process, such as after there is general
agreement with the master plan concepts. The property would then be available for purchase to the
City, as per the option language in the code, or to private developers, once the option period expires
or the City waives its right to purchase. City and EWEB staff prefer this strategy as the development
of a master plan allows the City and community to determine the desired redevelopment of the
property prior to the City deciding whether or not to exercise the purchase option for all or any
portion of the property available. The process also allows EWEB the time needed to determine the
costs and benefits of relocating from their riverfront property to the Roosevelt site.
Strategy 2. Select Developer/Purchaser
EWEB could issue a Request for Qualifications (RFQ) to select a developer/purchaser of the
riverfront property, with the understanding that after the property is declared surplus, the City will
agree to forego the option to purchase. The selected developer/purchaser would lead the master
planning process and complete the required land use applications. After the master plan is approved
and the property is redesignated and rezoned, the developer/purchaser would acquire the property.
Strategy 3. Declare Property as Surplus
EWEB could forego the master planning process and declare the property as surplus. The City’s
five-year option period would then begin. The City could a) buy the property and complete the
necessary master plan and land use applications to redesignate, rezone and redevelop the site, b)
decline to buy the site prior to the end of the option period, or c) let the option expire. If the City
chose b or c, EWEB could make the site available for purchase by a private party. The timing of the
master plan is less certain under this strategy, although it would still be required for sale and
redevelopment.
Strategy 4. Maintain Status Quo
EWEB operation and administrative functions could remain on the riverfront. EWEB would then
reinvest as needed in the existing buildings and infrastructure. The fourth strategy does not address
the growing sentiment that EWEB's and the community's interest is best served by the relocation of
the electric and water operations away from the riverfront, or the vision expressed in the Downtown
Plan to connect downtown to the river. Instead, the strategy defers decisions about reinvesting on
the riverfront or relocating to the Roosevelt site.
Since EWEB currently owns the property, City and EWEB staff propose that EWEB initiate and manage
the master planning process. In a December 2006memo to the EWEB Board, EWEB staff outlined a
strategy to embrace the community interest in the project by creating a Riverfront Advisory Team as one
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of the first steps in the master planning process. The Advisory Team would have representatives from
the community, EWEB Board and staff, and City staff.
One of the first Advisory Team tasks would be to develop a recommendation to the EWEB Board for a
RFQ to select an urban design consultant. The consultant would help to frame the citizen involvement
process and help the Advisory Team develop a series of concepts to address the required elements of the
master plan. EWEB would host public involvement sessions to share the concepts with a larger
audience and to gather input. Based on the input and oversight from the Advisory Team, the consultant
would combine the best concepts for each element into a single conceptual design for the site. A public
session would then be held for response to the concept. After further modifications, the conceptual
design would be presented to EWEB and the City for approval.
RELATED CITY POLICIES
Downtown, which includes the EWEB riverfront property, is one of the council’s 10 priority areas.
Numerous City policies also reference the potential and community value of the EWEB riverfront
property. The most relevant and recent are the four policies in the Downtown Riverfront section of the
Downtown Plan (page 29):
1.Incorporate the Willamette River as an integral element to downtown planning and development.
2.Collaborate with EWEB to encourage relocation of their utility facilities.
3.A master plan for the EWEB riverfront property must be approved by the City before any
redevelopment, land use application, rezoning, Metro Plan or refinement plan diagram
amendments are approved for uses not associated with EWEB functions. The master plan shall
be evaluated based on the master plan's consistency with principles A through D below:
A.Create a “people place” that is active, vibrant, accessible and multi-use.
B.Provide appropriate setbacks, deeper where environmental or habitat issues are more
critical, shallower in other areas.
C.Incorporate appropriate building and site design techniques that address environmental
concerns.
D.Incorporate an educational aspect, so that the riverfront improvements teach us about our
river, our history and our city.
The master plan shall be considered using the City's Type II application procedures, unless the
applicant elects to have the master plan reviewed concurrently with a Type III, Type IV or Type
V application.
4.Facilitate dense development in the courthouse area and other sites between the core of
downtown and the river.
COUNCIL/BOARD OPTIONS
1.Request that the City Manager and EWEB General Manager provide direction to EWEB and City
staff to continue to work together to pursue Strategy 1, above: Initiate master planning for the
EWEB riverfront property;
2.Request that the City Manager and EWEB General Manager provide direction to EWEB and City
staff to pursue Strategy 2 or 3, above, or to modify work to pursue an alternative master planning
process; or
3.Take no action (pursue Strategy 4).
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CITY MANAGER’S AND EWEB GENERAL MANAGER’SRECOMMENDATION
The City Manager and EWEB General Manager recommend that EWEB and City staff continue to work
together to pursue Strategy 1: Initiate master planning for the EWEB riverfront property, including a)
creating an Advisory Team, b) issuing an RFQ to select a consultant, c) developing a citizen
involvement plan, and d) creating a concept plan.
SUGGESTED MOTION
Move to direct the City Manager to continue to work with EWEB to pursue Strategy 1: Initiate master
planning for the EWEB riverfront property, including a) creating an Advisory Team, b) issuing an RFQ
to select a consultant, c) developing a citizen involvement plan, and d) creating a concept plan.
ATTACHMENTS
A. EWEB Riverfront Property holdings
B. Potential EWEB Riverfront Property for sale and redevelopment
FOR MORE INFORMATION
City of Eugene Staff Contact: Angel Jones
Telephone: 682-5336
Staff E-Mail: Angel.Jones@ci.eugene.or.us
EWEB Staff Contact: Debra Smith
Telephone: 484-2411, ext. 3102
Staff E-Mail: Debra.Smith@EWEB.Eugene.OR.US
EWEB Project Manger: Mark Oberle
Telephone: 484-2411, ext. 3230
Staff E-Mail: Mark.D.Oberle@eweb.eugene.or.us
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City of Eugene ~
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Caution: This map is based on imprecise source data which is subject to change. It is for general graphical reference and is not intended for legal, engineering or surveying purposes.
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D-31 024-1
DATE: 03/15/06
EUGENE WATER & ELECTRIC BOARD - EUGENE, OREGON
2/6120074:31 PM