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HomeMy WebLinkAboutCC Minutes - 06/18/01 Work Session MINUTES Eugene City Council Work Session McNutt Room, City Hall June 18, 2001 7:30 p.m. COUNCILORS PRESENT: Betty Taylor, David Kelly, Nancy Nathanson, Scott Meisner Gary Rayor, Bonny Bettman, Par Fart. COUNCILORS ABSENT: Gary Pap~. CITY COUNCIL WORK SESSION Mayor James D. Torrey called the meeting to order. A. Status Report: Discussion Between City of Eugene and PeaceHealth about Hospital Expansion City Manager Jim Johnson provided background on the issue. He reminded the council it directed him to meet with PeaceHealth and he had asked Mr. Kelly and Ms. Bettman to join him in those meetings. There had been five meetings. Lew Bowers helped represent the City; PeaceHealth was represented by Chief Executive Officer Alan Yordy, board member Gretchen Hult Pierce, Facilities staff Jim Wolfoman, and land use consultant Philip Farrington. Mr. Johnson recommended the City schedule a public forum and a meeting with the property owners in the area adjacent to the hospital. He indicated that if the council wished to place a measure asking voters for assistance in helping the hospital to expand in its current location on the September ballot, the last date to do so was July 9. Mr. Johnson reviewed the assumptions underlying the discussions, emphasizing that they were not shared by all parties. Those assumptions included: 1) PeaceHealth needs to expand beyond its current site to continue to provide quality health care; 2) PeaceHealth requires certainty for expansion over the next 50-75 years; 3) PeaceHealth requires approximately 40 acres for expansion; 4) the costs of developing in the core would be greater than at the hospital's Crescent site; 5) expansion could not take place at either site without changes to the governing refinement plan or the Metropolitan Area General Plan; 6) neither 13th and 11th avenues could not be closed to accommodate hospital expansion; and 7) no other likely site had been located, and the identified site for downtown expansion was contiguous and west of the hospital. Mr. Johnson referred the draft proposal distributed to the council, and reviewed the elements of the proposal, identifying areas of agreement and disagreement. He noted that draft had not been reviewed by the hospital board or the public. Mr. Rayor arrived at the meeting. Mr. Johnson identified as areas of disagreement the amount of financial assistance to be provided by the City for acquisition and condemnation of the properties to the west, and PeaceHealth's desire for certainty of MINUTES--Eugene City Council June 18, 2001 Page 1 Work Session expansion at its Crescent property if a vote to fund the financial assistance failed. He explained that PeaceHealth was asking for $10 million more in assistance than the City was offering, and the hospital was also asking the City to share costs above a certain level. He said that the City could not agree to the hospital's proposal that its costs be capped and the City pick up the costs after that capped amount. Rather, the City proposed to cap its contribution. Regarding certainty of expansion, Mr. Johnson said the hospital proposed a clause that the City would support its expansion at the Crescent site if the revenue measure failed, and would expedite its work in building the new hospital. Mr. Johnson said that the City did not suggest alternative language in this area as its representatives believed that the City was already offering a substantial amount of assistance to the hospital. Mr. Johnson asked for comment from Ms. Bettman and Mr. Kelly about the reasons the City was negotiating with the hospital. Ms. Bettman thanked Mr. Johnson and Allen Lowe, Lew Bowers, and Richie Weinman of the Planning and Development Department for the work they had done throughout the negotiations. She identified four reasons to keep PeaceHealth in the city center: 1) provision of health care; 2) economics; 3) land use; and 4) transportation. Speaking to the first reason, Ms. Bettman said that Eugene-Springfield was fortunate to have two hospitals, which resulted in extremely high-quality health care and a choice of providers. She said that one must ask how the geographic change in location of one of those facilities would change the market and affect the provision of health care and choice. In terms of economic development, Ms. Bettman pointed to the City's commitment to preserving the city center in the form of policies and resources. She said that City was often short of tools in accomplishing its objectives; she suggested that keeping the hospital downtown would have more impact than several smaller initiatives. If the hospital moved north, downtown would lose 1,200 jobs at the hospital as well as jobs in businesses and support services that rely on the hospital. Those businesses would have to move north with the hospital. Ms. Bettman pointed out that the City declined $43 million in tax revenue from Hynix and spent several million dollars on infrastructure to support the facility for a total of 850 jobs, which were located at the periphery of the city. Regarding land use and transportation, Ms. Bettman thought a hospital at the Crescent site would produce sprawl, and the demographic shift would be intense, leaving the city center "looking like a ghost town." She thought the hospital's move could impel some its workers to move north to be closer to the hospital, which would create pressure to rezone predominantly residential land to commercial use and lead to metropolitan densities and intensities of uses from Chad Drive to Coburg. It would also increase pressure to expand the urban growth boundary. Ms. Bettman thought the hospital downtown was well-served with transit and alternative modes and its expansion in that area would be more manageable. She said that transportation challenges to the north were more expensive and extensive, and would change the landscape of the area completely. She acknowledged that no transportation analysis had been done, which would occur in the context of a permit application. However, the Oregon Department of Transportation (ODOT) stated that an elevated concrete flyover would likely be needed to accommodate traffic to the hospital, and that Coburg Road could not be expanded to handle the increased capacity. Ms. Bettman acknowledged the cost and pain of keeping the hospital in the city center, but also believed there would be cost and pain if the hospital moved north. If the City was willing to be proactive and keep the hospital in the core, it would have the added benefit of revitalizing downtown. MINUTES--Eugene City Council June 18, 2001 Page 2 Work Session Mr. Kelly suggested the process constituted a choice between two very bad things. He thought that paying the cost of keeping the hospital downtown was not as bad as seeing it move out of the city center. Mr. Kelly said that cities are not vibrant, successful, or distinctive if they did not have healthy central cores, and that required major institutions to be located there. He noted that the current hospital location was one half-mile from City Hall; the new hospital site would be more than three miles from City Hall. Mr. Kelly said that a vibrant downtown was also an economically healthy downtown; if the heart of the city was not working or did not contain major institutions, it was not likely to be in a healthy city. He believed that the concentrated development contemplated by PeaceHealth, which was the largest private employer in the county, should be in the city center. Mr. Kelly concurred with Ms. Bettman about the impact on hospital-related businesses and the loss of employment in the core, which would occur as the council was spending tax money to try to revitalize downtown. Mr. Kelly said the hospital's proposed move was at odds with the council's adopted Growth Management Study policies, and both the Department of Land Conservation and Development and ODOT had expressed concern about the move. He believed that the move to the north would increase vehicle miles traveled in the aggregate. Mr. Kelly believed that the hospital was more compatible with its neighbors in the core than it would be with the neighbors in the north. He shared Ms. Bettman's concern about pressure on the urban growth boundary and development along Coburg Road. Mr. Johnson reported that there were approximately 390 trees in the ten-block area PeaceHealth would require for expansion downtown. There were approximately 365 dwelling units, six of which were owner-occupied, 40 small- and mid-size businesses and five large businesses in the area. He estimated the property acquisition, demolition, utility relocation, and legal costs at a range of $40 million to $60 million. Mayor Torrey called for questions from the council. Ms. Taylor asked if the City could reject an application for a plan amendment at the Crescent site. Mr. Johnson referred Ms. Taylor to a map of the Crescent site and said PeaceHealth owned 38 acres. He clarified that development on the site would require a conditional use permit. PeaceHealth would probably prefer to do a land exchange in the immediate area with School District 4J, which would move it away from the residential neighborhood and closer to Coburg Road. However, moving to that property would require the need for a plan amendment and zone change. Ms. Taylor asked if there was anyway the City could legally prevent the hospital from building on the site. Mr. Klein responded that the council could prevent the hospital from locating on the 4J parcel because it required a plan amendment, but it could not prevent the hospital from locating on the property it already owned because it had the proper designation and zoning. Ms. Taylor asked if it was possible to condemn the 38 acres owned by PeaceHealth in north Eugene for the good of the community. Mr. Klein said that depended on the reason for condemnation; for example, if there was a public purpose for the parcel as a park, the City could justify condemnation. However, if the City tried to acquire it to prevent PeaceHealth from using it, with the stated public purpose to keep PeaceHealth downtown, he did not think that was legally acceptable. MINUTES--Eugene City Council June 18, 2001 Page 3 Work Session Ms. Taylor asked if the trees in question were subject to the charter provision related to street trees. Mr. Johnson said the provision was triggered when a street was expanded. Responding to a question from Ms. Taylor, Mr. Johnson said that Mill and Ferry streets between 11th and 13th avenues and 12th Avenue between High and Patterson streets were being considered for vacation. Ms. Taylor asked why a September rather than November election was proposed. Mr. Johnson said that PeaceHealth wanted the earlier date to save interest costs. Ms. Taylor thought that the hospital could delay borrowing. Responding to a question from Mr. Rayor, Mr. Johnson said the City proposed to cap its costs at $25 million. Mr. Rayor asked if the street trees on 11th and 13th avenues in the right-of-way would still be in public ownership and would be protected. Mr. Johnson said yes, but added that the trees were not being considered as part of the development area. Mr. Rayor suggested the hospital be required to buy the vacated alleys. Mr. Johnson responded that the City would be given credit for the value of the alleys and streets in the $25 million. Mr. Rayor observed the phrase "share responsibility" in Item 5 was very open-ended, and asked about its financial implications. Mr. Johnson said that the item was intended to have no financial obligation for affirmative effort. Ms. Bettman pointed out that the City would have the option to implement a successful September bond measure depending on the success of negotiations. Responding to a question from Ms. Bettman regarding what was entailed in the $25 million, Mr. Johnson indicated the council would have a work session on the topic. He believed, however, that to realize such a sum the council would have to go to the voters. He noted that some of the total was in avoided costs to PeaceHealth, such as in waived development fees. Responding to a question from Mr. Meisner, Mr. Johnson confirmed that a September vote on a property tax measure would require a double majority. Responding to an observation from Mr. Meisner that the clause related to repayment to the City seemed to call for 100 percent liquidated damages, Mr. Johnson said the clause was conceptual in nature and agreed that more work was needed. Mr. Meisner asked if revenue-backed parking bonds required a vote. Mr. Johnson said no, but it was unlikely the revenues would be large enough to pay those costs. Staff was proposing a general obligation bond to fill the gap. Mr. Meisner observed that PeaceHealth was asking for payment of $20 million within one year of a successful election; he asked if there was any discussion of a reduction to present value. Mr. Johnson said no, not for the period of one year. Mr. Bowers added that the one-year time line was calculated on the basis of when PeaceHealth would be reimbursing the City for the acquisitions. Ms. Nathanson confirmed with Mr. Johnson that the proposed expansion would result in a net increase of 18 beds. She said it appeared that the City and hospital were going to a lot of trouble for few beds. Mr. Johnson MINUTES--Eugene City Council June 18, 2001 Page 4 Work Session said that the hospital was constructing new, reconfigured rooms and replacing all the rooms it had. Ms. Nathanson said that most of the discussion to this point had been on PeaceHealth's need to expand rather than modernize. She understood the need to modernize, but thought the increase in beds was very minimal. Mr. Johnson suggested the council consider the issue in terms of total capacity rather than the number of beds, because more beds could always be moved in. Ms. Nathanson said she would like to see some different information in support of Mr. Johnson's statements. Ms. Nathanson asked why PeaceHealth selected an investment target to tie repayment to, rather than completion of buildings or the opening of new facilities. Mr. Johnson suggested that they were essentially the same thing. Ms. Nathanson said that Mr. Johnson had described the City's position regarding the sharing of risk as being more focused on shifting costs than on sharing risk. She asked if there was a proposal for shared risk. Mr. Johnson clarified that the shift occurred between the two proposals: PeaceHealth shifted the risk so it was shared equally by both parties after the initial $35 million was expended. Ms. Nathanson asked what properties in the area in question were already owned by PeaceHealth. Mr. Johnson identified the properties on a map. Ms. Nathanson asked if PeaceHealth had considered a different configuration predicated on the property it owned to the south of the hospital. She said that there had been a large degree of residential displacement in the area, which also contained a closed City-owned park. She suggested that rather than focusing on a rectangle, the hospital consider an approach that was more organic in nature and one that took into consideration community and City interest while still being contiguous to the hospital. Mr. Johnson explained the hospital defined "contiguous" as being immediately contiguous, and it wanted the six blocks adjacent to the existing four blocks. He said that the negotiating parties talked about going south of 13th Avenue, but that raised discussion of closing or rerouting 13th Avenue, which was difficult to do. Ms. Nathanson asked if the City was in a proactive mode or reactive mode to development in the west University neighborhood. Mr. Johnson said that the community needed to think about what happened in that neighborhood if the development occurred. He believed the refinement plan needed to be updated and revised, and a large amount of citizen involvement needed to occur. Mr. Fart asked if the hospital would divest itself of the Hilyard property if it moved north. Mr. Johnson said no. The hospital indicated that, if it moved to the Crescent area, there would be considerable investment in and reuse of the Hilyard facility as a clinic, offices, and 24-hour urgent care. Brian Terrett of PeaceHealth estimated that about 700 positions would be lost at the Hilyard facility if the hospital moved. Mr. Fart observed that the hospital was referred to as being downtown but he did not think it was downtown. Mr. Farr asked what costs the voters would be asked to bear if the hospital moved to the Crescent site. Mr. Johnson said that there may be public expenses associated with the hospital, but the voters would not be asked for anything. Mr. Farr asked what would happen to the displaced dwelling units. Mr. Johnson said it was difficult to know because each situation would be unique. It was possible that some of the units would not be demolished for some time because the property was not needed for the first phase of development. It could be that someone moved in, attended and graduated from college, and moved away. Mr. Farr suggested it was reasonable to MINUTES--Eugene City Council June 18, 2001 Page 5 Work Session assume that the loss of residences would need to be made up from somewhere. He asked if the residents of the proposed expansion area were college students. Mr. Johnson said the City did not know the socio-economic characteristics of the residents, but thought Mr. Fart was probably correct. Mr. Farr said that if such people ended up moving to the periphery they would increase vehicle miles traveled by traveling to the University of Oregon. Mr. Johnson concurred. Responding to a question from Mr. Farr regarding traffic conditions near the university, Mr. Johnson thought conditions at both potential locations needed to be improved and would have to be worked on in the case of expansion. Mr. Farr noted his residence in west Eugene, and said "it sure is hard to get to Sacred Heart from my house." Mr. Farr asked whose definition of "downtown" put PeaceHealth "downtown." Mr. Johnson said that negotiators had interchangeably termed the hospital as being downtown, the core of the city, or the Hilyard campus. He concurred that technically, PeaceHealth would not be normally defined as being downtown. Mr. Farr suggested in that case, PeaceHealth should not be referred to as being downtown. He asked how far from the eastern city limits the hospital was now. Mr. Johnson was not sure; he estimated two miles. Mr. Farr expressed concern about the process that brought the council to this point. He asked how the negotiating committee was formed. Mr. Johnson clarified that the negotiating group was not a council subcommittee. The council had directed him to meet with PeaceHealth, and he had invited Ms. Bettman and Mr. Kelly to join him in the process because they represented the wards that were the present site and potential site of the hospital. Mr. Farr said he "really had a problem with that." Mr. Johnson said that he took that approach knowing that whatever resulted would require full council approval. Mr. Farr reiterated his objections to the process. Mr. Kelly asked Mr. Terrett for clarification of the number of beds to be added. Mr. Terrett indicated that the board was attempting to realize a once-in-a-century vision in terms of future facilities; the hospital's facilities renewal plan called for redesigning the hospital "as we know it" in a way that was more efficient than the current configuration. Mr. Kelly asked that the hospital provide projections of future bed numbers. Mayor Torrey asked if there had been an ODOT traffic study to determine the impact of a new hospital north of the Beltline. Mr. Johnson said no. Mayor Torrey asked if the hospital considered using the hospital-owned property on Willamette Street for expansion. Mr. Terrett explained that the property in question was not large enough for the hospital's purposes, and the cost of expansion at that site would be higher and the impact on traffic greater. Mayor Torrey asked what would happen if the voters turned down a September measure. Mr. Johnson speculated the hospital would proceed to file a conditional use permit for the Crescent property. Mayor Torrey asked the source of the City's funding in the cost-share. Mr. Johnson said that the council would have a work session on possible sources. Mayor Torrey asked Mr. Terrett if PeaceHealth would maintain an emergency room in the downtown campus equal to the facility in place now. Mr. Terrett said no. He said that the downtown facility would lack a trauma surgeon to handle a Level 2 trauma. He confirmed all helicopters and ambulances would go north. Mayor Torrey asked what would be lost in tax revenue from the property to be condemned. Mr. Johnson indicated staff would provide that information at the next work session. MINUTES--Eugene City Council June 18, 2001 Page 6 Work Session Mayor Torrey asked if the negotiating parties considered other sites in the city, possibly in the Glenwood area. Mr. Johnson explained that the only site outside the Hilyard campus considered by the group was the area of the Riverfront Research Park. He said that the hospital could not locate in Glenwood because of a federal law that limited the ownership of two hospitals within 20 miles; a move across the river would bring the hospital within 19 miles of another hospital it owned in Cottage Grove. Mayor Torrey asked if the negotiating parties discussed instituting a revenue source without a vote. Mr. Johnson said that the council had the choice of how to find the funding. He pointed out that a new revenue source passed by ordinance would probably quickly be referred to the voters. Ms. Taylor determined from Mr. Johnson that the City did not own the parking lot across the street from the library. He said that the hospital indicated the Willamette Street site did not work for its expansion purposes. Mr. Bowers clarified that the site in question was about five acres in size. Mr. Rayor asked if the hospital was proposing to use some of the area in question to develop private medical offices. Mr. Johnson said the hospital's consultant had worked with staff to create an outline of what a medical services zone would look like, and it included a variety of permitted and accessory uses. Mr. Rayor asked where medical offices could be located in the area now. He wanted to know more of what the hospital required for its core services. Mr. Lowe responded that the West University Neighborhood Plan had a policy that limited clinic development in the area. Clinic development was limited to no more than 50 percent of the land area in the block bordered by Patterson and High streets and 11th and 13th avenues. He noted that clinics could develop freely in the commercially zoned properties. Responding to Mr. Rayor's second question, Mr. Johnson said that the hospital did not have a development plan for the six blocks, but had done sufficient work to know what it needed would fit. The first three blocks to the west would constitute the initial building phase, and the balance would be available for future hospital expansion. The level of detail requested by Mr. Rayor was not available. Mr. Meisner asked if auxiliary uses such as medical offices leased to private practitioners by PeaceHealth would be taxable. Mr. Johnson said that if the hospital was not using the structures for its purpose, they were taxable. Mr. Meisner thought the cost-per-bed were very high as projected, and asked if there was discussion about the impact of the hospital expansion on hospital rates. Mr. Johnson distinguished between the initial number of bed and full build-out costs. Mr. Meisner thought the cost-per-bed was still high. Responding to a question from Ms. Nathanson, Mr. Johnson thought the costs of development on the Crescent property would probably be less, but he was hesitant to quantify that as it was dependent on decisions made by other agencies and by other factors. Ms. Nathanson asked about the traffic impact if the hospital chose to locate a clinic on the Crescent property and the remainder was developed in high-density development; would it be greater or lesser than the traffic generated by a hospital at that site? Mr. Johnson was not sure, noting the complications created by shift employees coming and going at non-peak hours. Mr. Lowe reviewed the range of unit assumptions for R-4 zones, which were from 30 to 120 units per acre. The market did not tend to support the higher end of the range, and he estimated development was more likely to occur at the range of 40 units per acre. He believed that would be equivalent to the impact of a new hospital at the site. He said that development above that level would greatly exceed the traffic generated by the hospital. Ms. Nathanson observed it appeared the City would have a transportation problem, "regardless." MINUTES--Eugene City Council June 18, 2001 Page 7 Work Session Responding to a question from Mr. Fart, Mr. Lowe indicated he would check his volume comparisons. Mr. Fart asked Mr. Lowe if it was safe to say that as land inside the urban growth boundary became more scarce, development would occur at higher densities. Mr. Lowe believed it was very speculative to say so. Mr. Fart did not agree. He asked Mr. Johnson to clarify his reference to non-peak hours. Mr. Johnson said that he meant the employees were more likely to come and go earlier and later than other commuters. Mr. Fart suggested that meant the traffic impact from the Crescent site would be less because of that fact. Mr. Johnson distinguished employee commuting times from the regular business and visiting traffic that would also be using the hospital. Mr. Fart asked Mr. Johnson if he had ever eaten dinner at Poppi's or seen a movie at the Mayflower. Mr. Johnson said yes. Mr. Fart said he was not interested in more of the area being bulldozed for the hospital. Mr. Fart left the meeting. Mayor Torrey solicited the council's position on holding a public forum on June 28 or July 2. The council briefly discussed the best day for the public forum given the holiday. Mr. Johnson reported that staff intended to schedule a property owners' meeting that was separate from the public forum. At the request of Ms. Bettman, Mr. Johnson described the format of the proposed forum, which would include a period during which staff would answer questions from the public and an opportunity for the public to provide comment to the council. Mr. Kelly, seconded by Mr. Rayor, moved to hold a public forum on June 28. The motion failed, 4:2; Mr. Kelly and Ms. Taylor voting yes. Mayor Torrey determined that there was consensus for a forum on July 2. Mr. Kelly advocated for the use of Samoan circles as a part of the public forum. Mr. Johnson indicated staff would look for a variety of techniques. Mr. Johnson solicited council input on the unresolved and other issues. Mr. Kelly thought any revenue source should be time-limited. Regarding the subject of residential displacement, he believed the residents in question would be displaced to locations all over the community, not necessarily at the periphery. Regarding the issue of cost-sharing, Mr. Kelly underscored that the City had not agreed to cost-sharing. He suggested that construction downtown might be more expensive because of a lack of a construction staging area, but that could be overcome by the fact the hospital would have plenty of phasing space with ten blocks, easing the differential. Mr. Meisner wanted the City's Growth Management Study policies to mean something, and he wanted the City to follow something. He wondered if Mr. Fart's objections would be the same if the hospital was contemplating a move to the end of South Amazon or near Churchill High School. He thought a centralized location for the hospital was important. MINUTES--Eugene City Council June 18, 2001 Page 8 Work Session Mr. Meisner did not want to take an open-ended position in terms of cost-sharing. He wanted another proposal. He appreciated that the City's share of the funds would come from a variety of sources. Mr. Meisner emphasized that he wanted the proposal to work. He was concerned about the loss of jobs in the core. Mr. Rayor thought the voters would understand the issues involved with the revenue side of the proposal. However, he was unsure the voters would understand the need for so many blocks. He was concerned about the potential the entire area would be razed and then fenced, likening the result to a nuclear explosion in the middle of downtown. He questioned the hospital's vision and why it did not take a more phased approach to the expansion issue. He was also very concerned about the existing property owners and residents and urged the City to reach out to those individuals. Mr. Rayor thought the public would appreciate a diagram of what the hospital envisioned. Ms. Nathanson agreed with the urban planning concepts that had been raised, but could not provide input at this time on the draft agreement because she thought it premature. She thought the public needed more specificity about the agreement's ultimate costs so it could evaluate it properly. Ms. Nathanson believed Mr. Fart's concerns about the loss of the residential units in the area regarded the potential it would severely impact the vacancy rate and drive rents up. Ms. Nathanson noted she had mentioned early in the process to the negotiating parties her interest in the potential of splitting the hospital between its Hilyard and Willamette campuses. Ms. Nathanson wanted a commitment from the hospital to participate in the neighborhood planning process. Ms. Nathanson asked how the hospital expansion would affect the public safety collaboration between the hospital and City. Ms. Bettman said that PeaceHealth plans to reconfigure its entrance to be located on 11th Avenue and oriented toward Franklin Boulevard. Regarding the issue of peak hour traffic, Ms. Bettman clarified that the only employees on differential shifts were employees like nurses, aides, and ward clerks. There were many other employees working traditional hours. Ms. Bettman said that the Hilyard facility would not have an emergency room if the hospital moved because there would be no intensive care unit or inpatient services. Ms. Bettman said that the proposed Exclusive Hospital Zone would include parking structures, which were taxable. Regarding the unresolved issues, Ms. Bettman emphasized that the she did not want to leave the door open to any possible inpatient or hospital uses elsewhere in the community if the City was going to go to the lengths contemplated to keep PeaceHealth downtown. Ms. Taylor indicated she was not willing to take a position until she had heard from the public. She said it was important to be clear about the costs involved and the loss of tax revenue. She questioned why PeaceHealth needed to build out, rather than up. She asked if the doctors' offices between Patterson and Hilyard streets would be a part of the hospital. Mr. Johnson said the buildings would come down as the hospital reconfigured the Hilyard campus. He noted the hospital preferred to build no higher than five to six stories. MINUTES--Eugene City Council June 18, 2001 Page 9 Work Session Mayor Torrey suggested that PeaceHealth was seeking the ten-block area not because it needed it now, but because it never wanted to go through this process again. He asked if the City could provide an irrevocable development authority for all ten blocks to PeaceHealth so that no future council could rescind it. Glenn Klein of the City Attorney's Office said yes, State law provided a process for a development agreement that included a public participation process; the agreement would guarantee the property owner the ability in accordance with the agreement. Mayor Torrey asked about the height limit for the Hilyard property. Mr. Lowe said there was no height limit for commercial use now, and the Land Use Code Update proposed a 120 foot height limit. Mayor Torrey wanted to find room for the hospital to expand at its Hilyard Street property but did not want to give up the potential of expansion at the Willamette Street property. He acknowledged the hospital's opposition to splitting its operations. However, he thought the Willamette Street site was more truly "downtown." Mayor Torrey urged the council to share the cost of the proposal with the public and to be prepared to identify a maximum amount and stick to it. Mr. Johnson solicited council direction on the issues of certainty for expansion and the funding cap. Regarding the issue of certainty of expansion, Ms. Taylor, Ms. Bettman, and Mr. Kelly did not support a guarantee of certainty of expansion at the Crescent site. Mayor Torrey felt that the hospital should be given some predictability. Ms. Nathanson concurred, and wanted to know what sort of support the hospital would give to a revenue measure, and if it would be involved in the campaign for it. Regarding the issue of the $25 million cap proposed by the City, all councilors agreed on the need for a cap. The range supported by councilors was from $20 million to $25 million. Mayor Torrey adjourned the meeting at 9:39 p.m. Respectfully submitted, James R. Johnson City Manager (Recorded by Kimberly Young) MINUTES--Eugene City Council June 18, 2001 Page 10 Work Session