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HomeMy WebLinkAboutItem 3: Ordinance on Downtown Urban Renewal Plan Amendments ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Public Hearing: An Ordinance Adopting an Amended Urban Renewal Plan for the Downtown Urban Renewal District, Formerly the Central Eugene Project Meeting Date: July 16, 2007 Agenda Item Number: 3 Department: Planning and Development Staff Contact: Richie Weinman www.eugene-or.gov Contact Telephone Number: 682-5533 ISSUE STATEMENT The public is invited to comment on an ordinance to amend the Central Eugene Project (Downtown) Urban Renewal Plan. On May 29, 2007, the council initiated amendments that include increasing the maximum indebtedness by $40 million to a total of $73 million, extending the termination date of the district by six years to 2030, and changing the name of the district to its commonly referred to name of “Downtown Urban Renewal District.” BACKGROUND The major reason for amending the Urban Renewal Plan at this time is to accommodate the City’s financial participation in the redevelopment of the West Broadway area. The history of the West Broadway project, the HUD Section 108 Loan and Brownfield Economic Development Initiative (BEDI) Grant, and the Downtown Urban Renewal Plan amendments is included as Attachment A. The Downtown Urban Renewal District was created in July 1968. The plan has been amended four times, most recently in 2004. State law requires a “substantial plan amendment” when the maximum indebtedness is increased. The substantial amendment process requires a mailed notification to all Eugene property owners, a review by the Planning Commission, notification to other impacted taxing districts, and a public hearing. The proposed ordinance containing the 2007 amendments, the proposed plan as amended and the report on the plan are included as attachments B through D. The impacted taxing districts were notified by letter on June 11, 2007. This resulted in a review by the Lane County Finance and Audit Committee on June 28. The committee expressed appreciation that the City informed Lane County about the proposed plan amendments and indicated that it may submit written comments. The Planning Commission discussed the amendments and the citizen involvement strategy on June 18 and adopted a motion acknowledging its review. A mailed postcard was delivered to most Eugene property owner mailboxes on June 23. The final citizen notification element that is required by statute is this public hearing. Maximum indebtedness refers to a total spending limit during the life of the plan. For Eugene, the maximum indebtedness was adopted in 1998 and spending towards that limit began in fiscal year 1999. The current “maximum indebtedness” of $33 million has nearly been fully spent, with about $26 million spent on the library and $4.6 million left for future projects. Adopting a “maximum indebtedness” L:\CMO\2007 Council Agendas\M070716\S0707163.doc figure does not authorize or obligate the district to enter into debt. Rather, it allows current and future Urban Renewal Agency (URA) Boards to have the ability to fund projects over time, either with cash or by issuing debt. Extending the termination date allows the URA to issue debt with a 20-year repayment schedule, which maximizes the ability of the URA to contribute to a large-scale development effort such as the West Broadway redevelopment project. This proposed amendment enables urban renewal financing to assist the West Broadway Redevelopment Project. The council was presented with a preliminary finance plan in May. Urban renewal funds, a federal BEDI grant and a HUD Section 108 Loan were identified as potential resources that could be used for this project. The preliminary financing plan assumes that the City’s financial participation in this public/private partnership will consist of several types of expenditures. There would likely be some contribution towards the land acquisition and public site-related costs (utilities, sidewalks, etc.). The City would most likely be asked to pay for a publicly-owned parking garage. For the housing portions of the project, the developers may request a low-income housing loan, which would be repaid over time. They may also request a 10-year Multi-Unit Property Tax Exemption or a 20-year low-income housing exemption. (This information is speculative because the City and the developers have not yet negotiated specific financial arrangements.) Increasing the maximum indebtedness and extending the termination date are necessary to allow the Urban Renewal Agency to increase its financial capacity to fund the City’s anticipated financial participation in the West Broadway redevelopment effort. City Council action on the plan amendments is scheduled for August 13, 2007. This timeline enables the amendments to take effect in a timely manner to assist the West Broadway Redevelopment Project. RELATED CITY POLICIES The redevelopment of West Broadway is related to one of the 2007-2008 City Council Goals: – Downtown InitiativeFacilitate significant revitalization of downtown core. Downtown development is guided by policies in the Downtown Plan and Growth Management Policies (#1, 2, 3, 10, and 14). In particular, the Downtown Plan includes policies that state that the City should: ? Actively pursue public/private development opportunities to achieve the vision for an active, vital, growing downtown; and ? Use downtown development tools and incentives to encourage development that provides character and density downtown. A number of financial policies would guide the creation of the final economic development finance plan, including the City’s debt policies. COUNCIL OPTIONS Following the Public Hearing, the council can adopt the plan as proposed, decline to amend the plan or adopt different amendments than proposed. L:\CMO\2007 Council Agendas\M070716\S0707163.doc CITY MANAGER’S RECOMMENDATION The City Manager recommends that the council conduct a public hearing and approve the proposed plan amendments on August 13, 2007. SUGGESTED MOTION Because this is a public hearing, no motion is needed. ATTACHMENTS A. Proposed Ordinance amending the Urban Renewal Plan B. Downtown Urban Renewal District Urban Renewal Plan marked to show proposed amendments C. Report on the Renewal Plan D. Council and URA Action History: West Broadway Redevelopment Project, BEDI, Section 108 and Downtown Urban Renewal District E. Letter from Lane County FOR MORE INFORMATION Finance Contact: Sue Cutsogeorge, Financial Analysis Manager Telephone: 682-5589 Staff E-Mail: Sue.L.Cutsogeorge@ci.eugene.or.us Development Contact: Richie Weinman, Urban Services Manager Telephone: 682-5533 Staff E-Mail: Richie.D.Weinman@ci.eugene.or.us L:\CMO\2007 Council Agendas\M070716\S0707163.doc ATTACHMENT A ORDINANCE NO. ___________ AN ORDINANCE ADOPTING AN AMENDED URBAN RENEWAL PLAN FOR THE DOWNTOWN URBAN RENEWAL DISTRICT, FORMERLY THE CENTRAL EUGENE PROJECT . The City Council of the City of Eugene finds that: A. The Urban Renewal Plan for the Central Eugene Project (the “1968 Plan”) was initially adopted on July 3, 1968 by Resolution No. 257 of the Eugene Urban Renewal Agency, and on December 19, 1968 by Resolution No. 1609 of the Eugene City Council. The City Council subsequently amended the Plan by Ordinance No. 19648 on November 8, 1989 (the “1989 Amendment”), by Ordinance No. 20120 on June 1, 1998 (the “1998 Amendment”), and by Ordinance No. 20328 on September 13, 2004 (the “2004 Amendment” and together with the 1989 Amendment, the 1998 Amendment and the 2004 Amendment, the “Original Plan” ). B. The 1998 Amendment was in response to provisions of Measure 50, and the Council’s action grandfathered the district, selected a tax option, set a maximum indebtedness amount, and specified that tax increment funds only be used for development of a downtown library, completion of certain existing projects, and payment of District administrative expenses. C. The 2004 Amendment expanded the projects for which tax increment funds could be used; created a public advisory committee; and added a requirement of specific Agency approval for projects greater than $250,000, other than loans. D. The City Council’s 2007 Goals include a goal to facilitate significant revitalization of downtown. The City Council and the Urban Renewal Agency of the City of Eugene (the “Agency”) have determined that implementation of the West Broadway redevelopment project, using urban renewal as a financing tool, is consistent with that goal and will require a substantial amendment of the Original Plan, and on May 29, 2007 directed the Agency Director to initiate the process to amend the Original Plan. E. In accordance with the provisions of ORS 457, the Oregon Constitution, and all applicable laws and ordinances, the Planning and Development Department of the City of Eugene has prepared amendments to the Original Plan (the “2007 Amendments”) including: (1) Renaming the Plan “The Urban Renewal Plan for the Downtown Urban Renewal District”; (2) Increasing the maximum indebtedness amount by $40 million, to a total of $73 million; and (3) Extending the termination date from June 30, 2024 to June 30, 2030. Ordinance - 1 F. The Urban Renewal Agency of the City of Eugene has considered the proposed 2007 Amendments (such 2007 Amendments amending the Original Plan hereinafter referred to as the “Plan” or the “Urban Renewal Plan”) and the accompanying Report on Urban Renewal Plan for the Downtown Urban Renewal District (the “Report”) and has forwarded it to the Council for adoption. G. In accordance with ORS 457.085(5), on June 11, 2007, the proposed Plan and the Report was forwarded to the governing body of each taxing district affected by the Plan. H. On June 18, 2007 the Planning Commission met to review the Plan and Report. I. After public notice mailed pursuant to ORS 457.120, the Council conducted a public hearing on July 16, 2007, on the proposed 2007 Amendments. Based on the recommendations of the Urban Renewal Agency of the City of Eugene, and the Planning Commission, and the written and oral testimony before the Planning Commission and the Council, the Council specifically finds and determines that: (1) The area defined in the Plan is blighted; (2) The rehabilitation and redevelopment is necessary to protect the public health, safety or welfare of the municipality; (3) The Plan conforms to the Metropolitan Area General Plan, State Land Use Planning Goals, the Downtown Plan, the adopted Growth Management Policies, the Vision for Greater Downtown Eugene, and other adopted City plans and policies, including the Council’s 2007 Goals, and provides an outline for accomplishing the urban renewal projects proposed in the Plan; (4) The Plan provides that the Urban Renewal Agency of the City of Eugene will prepare, adopt and maintain a Relocation Policy providing for the housing of displaced persons within their financial means in accordance with ORS 35.500 to 35.530 and, except in the relocation of elderly or disabled individuals, without displacing on priority lists persons already waiting for existing federally subsidized housing; (5) Acquisition of real property is necessary to carry out the purposes and policies of the Plan; (6) Adoption and carrying out of the Plan is economically sound and feasible; and (7) The City shall assume and complete any activities prescribed by the Plan. THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1 . Based upon the above findings, which are hereby adopted, the Urban Renewal Plan for the Downtown Urban Renewal District attached as Exhibit A is approved and adopted as the urban renewal plan for the area set forth in the Plan. Section 2. The City Recorder is requested to: (a) Publish a notice of the adoption of the Plan, in the Register-Guard, a newspaper published within the City of Eugene and having the greatest circulation within the City, no later than four days following the date that this Ordinance is adopted. In accordance with ORS 457.135, the notice Ordinance - 2 shall contain a statement that the Plan shall be conclusively presumed valid for all purposes 90 days after its adoption by this Ordinance and that no direct or collateral attack on the action adopting the Plan may be commenced thereafter; (b) Forward a copy of this Ordinance and the Plan to the Urban Renewal Agency of the City of Eugene, which Agency will cause the Plan to be recorded in the official records of Lane County, Oregon; and (c) Forward a copy of this Ordinance and the Plan to the Lane County Assessor and request that the Assessor perform the duties directed by ORS 457.430 through ORS 457.450. Passed by the City Council this Approved by the Mayor this ____ day of August, 2007 _____ day of August, 2007 __________________________________________ City Recorder Mayor Ordinance - 3 Urban Renewal Plan ForCentral EugeneProject The (AKA: Downtown Urban Renewal District) Downtown Urban Renewal District Adopted July 1968 - Modified - December 1968 December 1989 June 1998 September13,2004 August 2007 Urban Renewal Agency of Eugene, Oregon URBAN RENEWAL PLAN FOR THE CENTRAL EUGENE PROJECT DOWNTOWN URBAN RENEWAL DISTRICT Table of Contents Part 1 - Text Section 100 – Introduction...............................................................................................1 Section 200 – Definitions.................................................................................................1 Section 300 – Legal Descriptions....................................................................................3 Section 400 – Goals and Objectives...............................................................................4 Section 500 – Land Use Plan..........................................................................................6 Section 600 – Project Activities.......................................................................................6 Section 700 – Methods for Financing the Projects........................................................12 Section 800 – Annual Financial Statement Required....................................................13 Section 900 – Citizen Participation................................................................................13 Section 1000 – Non-Discrimination...............................................................................14 Section 1100 – Recording of this Plan..........................................................................14 Section 1200 – Procedures for Changes or Amendments............................................14 Section 1300 – Duration and Validity of Approved Plan................................................15 Section 1400 – Maximum Indebtedness.......................................................................16 Part 2 – Exhibits............................................................................................................17 URBAN RENEWAL PLAN FOR THE CENTRAL EUGENE PROJECTDOWNTOWN URBAN RENEWAL DISTRICT Section 100 – Introduction TheDowntown Urban Renewal District (formerly known as the Central Eugene Project Plan), containing an area of approximately 70 acres within the boundaries of the City of Eugene, consists of Part 1, text, and Part 2, exhibits. This revised plan has been prepared by the Planning and Development Department of the City of Eugene and is formatted in line with Oregon Revised Statutes, ORS Chapter 457, at the request of the City Council. The City Council’s 2007 Goals include a goal to facilitate significant revitalization of downtown. The Downtown Urban Renewal District Plan is an essential tool to assist in this revitalization effort. Section 200 – Definitions The following definitions will govern this plan. Acquisition means the act or process of acquiring fee title or interest other than fee title of real property (including the acquisition of development rights or remainder interest). Agency or Renewal Agency means the Eugene Renewal Agency which in accordance with ORS Chapter 457 is the official Urban Renewal Agency of the City of Eugene, Lane County, Oregon. Blighted areas means areas which, by reason of deterioration, faulty planning, inadequate or improper facilities, deleterious land use, or the existence of unsafe structures, or any combination of these factors are detrimental to the safety, health, or welfare of the community. A blighted area is characterized by the existence of one or more of the conditions described in ORS 457.010 (1). City means the City of Eugene, Lane County, Oregon. County means the County of Lane, State of Oregon. Developer means any individual or group which acquires property or which receives financial assistance for the physical improvement of publicly or privately held structures and land within the project area. Downtown Plan The Policies in the Downtown Plan were adopted by the Eugene City Council in 2004 as a refinement of the Eugene Springfield Metropolitan Area General Plan. Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 1 Exhibit means an attachment, either narrative or graphic, to the plan for the project area. ORS means Oregon Revised Statutes (State law). ORS Chapter 457 regulates the urban renewal process. Plan means the Urban Renewal Plan for the Central Eugene ProjectDowntown Urban Renewal District. The plan consists of Part 1, text and Part 2, exhibits. Project means any undertaking or activity within the central Eugene projectDowntown Urban Renewal District, such as a public improvement, street project, or loan program which is authorized by and implements provisions set forth in the Urban Renewal Plan. Plan area means the entire Central Eugene ProjectDowntown Urban Renewal District plan area. Redeveloper (see Developer) means any individual or group which acquires property or which receives financial assistance for the physical improvement of publicly or privately held structures and land within the project area. Rehabilitation means the act or process of returning a property to a state of utility through repair or alteration which makes possible an efficient, contemporary use while preserving those portions or features of the property which are significant to its historical, architectural, and cultural values. Report on the plan means the textual material and graphic exhibits required by ORS 457.085 (3) which explains existing conditions, activities, procedures, and proposals of the plan. State means the State of Oregon and its various agencies, divisions, and departments. Tax increment financing means a method of financing urban renewal projects as authorized by ORS Chapter 457, which uses the tax revenues generated by the increased taxable values in a defined area to pay for improvements within that area or benefiting that area. Text means Part 1 of this Urban Renewal Plan for the Central Eugene ProjectDowntown Urban Renewal District. Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 2 Section 300 – Legal Descriptions Legal Boundary TheCentral Eugene ProjectDowntown Urban Renewal District includes thatanarea of approximately 70 acres as originally established in 1968. The following is a legal description of the boundary of the Central Eugene ProjectDowntown Urban Renewal District plan area: The project area includes all of the land within the boundaries designated on the Project Boundaries Map attached as Exhibit A and is described as containing all lots or parcels of property, situated in the City of Eugene, County of Lane, State of Oregon, bounded generally as follows: th Beginning at the southwest corner of the intersection of 11 Avenue and Charnelton Street in the City of Eugene, Lane County, Oregon, commencing northerly along the west right-of-way line of Charnelton Street to the point of intersection of the south right- th of-way line of the alley between 10 Avenue and Broadway; (1) thence, westerly along the south right-of-way line of said alley to the west line of Lincoln Street; (2) thence, northerly along the west right-of-way line of Lincoln Street to the point of intersection of the north right-of-way line of the alley between Broadway th and 8 Avenue if extended; (3) thence, easterly along the north right-of-way line of said alley to the west right-of-way line Charnelton Street; (4) thence, northerly along the west right-of-way line of Charnelton Street to the th northwest corner of the intersection of 7 Avenue and Charnelton Street; th (5) thence, easterly along the north right-of-way line of 7 Avenue to the th northwest corner of the intersection of 7 Avenue and Olive Street; (6) thence, northerly along the west right-of-way line of Olive Street to the th northwest corner of the intersection of 6 Avenue and Olive Street; th (7) thence, easterly along the north right-of-way line of 6 Avenue to the th northeast corner of the intersection of 6 Avenue and Oak Street; (8) thence, southerly along the east right-of-way line of Oak Street to the northeast corner of Oak Street and South Park Avenue; (9) thence, easterly along the north right-of-way line of South Park Avenue extended to the east right-of-way line of Pearl Street; (10) thence, southerly along the east line of Pearl Street to the southeast th corner of the intersection of Pearl Street and 11 Avenue; th (11) thence, westerly along the south line of 11 Avenue to the point of beginning. Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 3 Section 400 – Goals and Objectives Goals The goals of the Central Eugene ProjectDowntown Urban Renewal District Plan are: 1. To improve the function, condition, and appearance of the development area through: a. redevelopment and rehabilitation of existing and substandard buildings; b. development of new buildings c. improved access and circulation in the downtown area; d. provision of pedestrian amenities and open space. 2. To eliminate blight and blighting influences; and 3. To strengthen the economic conditions of the plan area and to improve the downtown’s importance in the region by strengthening its economic base and to enhance its role as a central location for public and private development and investment. Objectives Development in the Central Eugene ProjectDowntown Urban Renewal District area is intended to implement the adopted policies contained in the Downtown Plan. Specifically, the objectives of this plan are: Land Use Promote intensity of use through development of publicly and privately owned land. Strengthen existing retail and seek new retail development for integration into the downtown area. Support existing and potential office development and other employment- generating uses. Encourage owner-occupied and rental housing or developments which incorporate housing, in the downtown. Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 4 Access and Circulation Improve access and entrances into the downtown from the regional transportation system. Provide better access within the downtown and linkages between downtown and other major activity centers. Improve the circulation of traffic within the plan area. Provide an adequate site and facilities in support of mass transit to meet the present and future needs of downtown employees, employers, retailer, businesses, and other downtown users. Improve access and circulation for bicycles, pedestrians, carpooling, and other alternative modes of transportation. Assist with the construction of new parking structures to meet existing and future development needs. Improve connections between the core of downtown, the riverfront area, and the University of Oregon. Public Facilities and Improvements Provide outdoor space downtown for major public gatherings. Provide appropriate landscaping, open spaces, rest areas, and other shopper amenities and conveniences. Support the continued development of the downtown public library. Construct or reconstruct public improvements that will stimulate nighttime activity or private investment in the downtown area. Improve the water, steam, sewer, and storm drainage system in the plan area. Assist with the construction of public facilities. Improved accessibility for people of all abilities, anywhere in the district, through the removal of architectural barriers, rehabilitation of existing structures and through the application of design improvements. Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 5 Rehabilitation Encourage repair and rehabilitation of existing buildings within the project area through grants and low-interest loan programs. Section 500 – Land Use Plan The use and development of all land within the Central Eugene ProjectDowntown Urban Renewal District Plan area shall comply with the regulations prescribed in the City’s comprehensive plan, zoning ordinance, subdivision ordinance, City charter, or any other applicable local, State or Federal laws regulating the use of property within an urban renewal area. Section 600 – Project Activities In order to achieve the objectives of this plan, the following activities may be undertaken on behalf of the City of Eugene by the Renewal Agency, in accordance with applicable Federal, State, County, and City laws, policies, and procedures. A. PUBLIC IMPROVEMENTS . 1Street, Curb, and Sidewalk Improvements Improvements within the renewal area may require the construction of new street, curb, sidewalks or sidewalk improvements, such as widening, within the plan area. The Renewal Agency may participate in funding sidewalk and roadway improvements including design, redesign, construction, resurfacing, repair and acquisition of right-of way for curbs, streets, and sidewalks, and pedestrian and bicycle paths. Projects to be undertaken include, but are not limited to: Local street, curb, and sidewalk improvements identified in the Eugene Capital Improvements Program (CIP), the Vision For a Greater Downtown Eugene Report, and the Courthouse District Concept Plan. Other curb, sidewalk and street improvements identified by the Renewal Agency. . 2Public Utilities The development proposed for the renewal area may require the replacement environmental and construction of water, storm and sanitary sewer facilities, and mitigations. These improvements may include, but are not limited to: Sanitary sewer, water, and storm water system upgrades & replacements identified in Eugene Capital Improvements Program Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 6 3. Streetscape Projects This activity will enable the Renewal Agency to participate in activities improving the visual appearance of the plan area. These improvements may include, but are not limited to: Accent paving Decorative lighting Street trees, planters, and landscaping Furnishings, including tables, benches, kiosks, telephone booths, drinking fountains, trash receptacles, bicycle racks Street and directional signage Public art and water features Gateway monuments and landscape features Undergrounding of overhead utilities 4.Pedestrian, Bike, and Transit Improvements These activities will include pedestrian, bicycle and transit connections between the renewal plan area, the river, public parks, and other areas of Eugene. Activities may include bicycle parking and storage, transit stops, covered shelters, transit pullouts, and other related activities which will promote pedestrian, bicycle, and public transportation uses in the renewal area. These improvements include, but are not limited to: Provide new bike paths or lanes Provide pedestrian connections to the downtown, riverfront, and Courthouse area. Provide a more prominent entrance to the downtown at East Broadway Provide weather sheltering devices for the protection of pedestrians Street lights and traffic control devices . 5Public parks, public plazas, rest rooms, and open spaces The Renewal Agency may participate in funding the design, acquisition, construction or rehabilitation of public spaces, or parks or public facilities within the urban renewal area. Projects to be undertaken include, but are not limited to: Walkways and plazas Accessibility improvements . 6Public Parking and Public Transportation Facilities The Agency is authorized to participate in funding the acquisition and construction and enhancement of public parking and public transportation facilities within the renewal area. The precise location and type of facilities will be decided after further study. Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 7 7. Other Public Facilities The Agency is authorized to participate in development of public facilities including City Hall, police and fire facilities, libraries, recreation centers, conference facilities, and community centers. These facilities will benefit the renewal area by increasing public usage of the area, by enhancing protective services, and by stimulating additional public and private investment in the renewal area. The extent of the Agency’s participation in funding such facilities will be based upon an Agency finding on the benefit of that project to the renewal area, and the importance of the project in carrying out Plan objectives. The type and location of these public facilities will be determined by future study.Potential public facilities to be assisted include, but are not limited to: New Police Building or City Hall Library improvements B. OFF-SITE FACILITIES To encourage the development or redevelopment of private property within the plan area, the Agency may construct, install, pay for, or otherwise cause certain off-site public facilities to be installed or provided when, in the public interest, such action would benefit and further the objectives of the plan. Potential off-site facilities to be assisted include, but are not limited to: New parking, improvements to existing transportation and other facilities, and mass transit stations, and public spaces. C. ACQUISITION AND REDEVELOPMENT 1. Intent. It is the intent of this plan to authorize the Renewal Agency to acquire property within the plan area by any legal means to achieve the objectives of this plan, and specifically, for any of the purposes listed below. 2. Method. Property acquisition, including limited interest acquisition, is hereby made a part of this plan and may be used to achieve the objectives of this plan in the presence of any of the following conditions: a. Where existing conditions do not permit practical or feasible rehabilitation of a structure and it is determined that acquisition of such properties and demolition of the improvements thereon are necessary to remove substandard and blighting conditions; b. Where detrimental land uses or conditions such as incompatible uses, or adverse influences from noise, smoke or fumes exist, or where there exists overcrowding, or conversions to incompatible types of uses, and it is determined that acquisition of such properties and demolition of the improvements are Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 8 necessary to remove blighting influences and to achieve the objectives of this plan; c. Where it is determined that the property is needed to provide public improvements and facilities as follows: Right-of-way acquisition for streets, alleys, or pedestrian ways; Property acquisition for public use; and Property acquisition for public, off-street parking facilities. d. Where it is determined that the assembling of land for private development is necessary to attract new commercial and residential activity or to allow for expansion or efficient operation of current commercial or industrial activities. 3. Land Acquisition Requiring Plan Amendments. Land acquisition for any purpose other than specifically listed in 600-C-2 above, shall be accomplished only by following procedures for amending this plan as set forth in Section 1200 of this plan. If such plan amendment is approved by the Eugene Renewal Agency, a map exhibit shall be prepared showing the properties to be acquired, shall be appropriately numbered, and shall be included in Part Two as an official part of this plan. Assembling land for private development where the developer of such land is a person or group other than the owner of record of such land to be acquired, shall not be considered as a substantial amendment to this plan. Each such development and the property acquisition required shall be processed on a case-by-case basis and no such acquisition shall be undertaken until authorized by the Renewal Agency. D. RELOCATION ACTIVITIES If the Agency acquires property which is occupied and would cause the displacement of the occupants in the implementation of the plan, the Agency will provide assistance to persons or businesses to be displaced. Those displaced will be contacted to determine their individual relocation needs. They will be provided information on available space and will be given assistance in moving. All relocation activities will be undertaken and payments made in accordance with the requirements of ORS 281.045 - 281.105 and any other applicable laws or regulations. Relocation payments will be made as provided in ORS 281.060. Payments made to persons displaced from dwellings will assure that they will have available to them decent, safe, and sanitary dwellings at costs or rents within their financial means. The Agency will prepare, adopt, and maintain a Relocation Policy prior to acquiring any property which will cause displacement. Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 9 E. DEVELOPMENT AND REDEVELOPMENT The Renewal Agency also is authorized to provide loans or other forms of financial assistance to property owners wishing to develop or redevelop land or buildings within the renewal area, or to persons desiring to acquire or lease buildings or land from the Agency. The Agency may assist in the creation of, and participate in, public/private partnerships that result in development or redevelopment. The Agency may make this assistance available as it deems necessary to achieve the objectives of this Plan. Projects receiving Agency assistance may include, but are not limited to: Assisting the construction or expansion of job-creating developments Assisting in the development of housing and mixed use projects F. ADMINISTRATIVE ACTIVITIES 1. The Agency may retain the services of independent professional people or organizations to provide administrative or technical services such as: a. Preparation of market, feasibility, or other economic studies; b. Preparation of design, architectural, engineering, landscaping architectural, planning, development, or other developmental studies; c. Providing accounting or audit services; d. Providing special rehabilitation, restoration, or renovation feasibility and cost analysis studies; e. Assisting in preparation of the annual financial report required under Section 800 of this plan; f. Providing property acquisition appraisals; and g. Evaluation of this plan and the success of its activities. 2. The Agency may acquire, rent, or lease office space and office furniture, equipment, and facilities necessary for it to conduct its affairs in the management and implementation of this plan. 3. The Agency may invest its reserve funds in interest-bearing accounts or securities. 4. To implement this plan, the Agency may borrow money, accept advances, loans, or grants from any legal source, issue urban renewal bonds and receive tax increment proceeds as provided for in Section 700 of this plan. Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 10 G. PROPERTY DISPOSITION AND DEVELOPER OBLIGATIONS 1. Property Disposition. All real property acquired by the Agency in the plan area, if any, shall be disposed of for development for uses permitted in the plan for the specific uses to be permitted on the real property. Real property acquired by the Renewal Agency may be disposed of to any other public entity in accordance with this plan. All persons and entities obtaining property from the Agency shall use the property for the purposes designated in this plan and comply with other conditions which the Agency deems necessary to carry out the purposes of this plan. 2.1.Developer's Obligations. Any developer and the developer’s successors or assigns within the plan area, in addition to the other controls and obligations stipulated and required by the provisions of this plan, shall also be obligated by the following requirements: a. The Developer shall obtain necessary approvals of proposed developments from all Federal, State, or local agencies that may have jurisdiction on properties and facilities to be developed or redeveloped within the plan area; b. The Developer shall develop or redevelop such property in accordance with the adopted land use provisions; c. The Developer shall submit all plans and specifications for construction of improvements on the land to the Agency for review and distribution to appropriate reviewing bodies as required by the City and shall comply with all applicable requirements of existing City codes and ordinances; d. The Developer shall commence and complete the development of such property for the uses provided in this plan within a reasonable period of time; and e. The Developer shall not effect or execute any agreement, lease, conveyance, or other instrument whereby the real property or part thereof is restricted in a manner that does not comply with Section 4.613 of the Eugene Code, 1971. H. REHABILITATION AND CONSERVATION 1. Intent. It is the intent of this Plan to encourage conservation and rehabilitation of existing buildings which can be economically rehabilitated. Existing buildings in the plan area are considered an important asset in maintaining and improving the economic and cultural environment of the plan area. Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 11 2. Method. Rehabilitation and conservation may be achieved in two ways: a. By owner and/or tenant activity, with or without financial assistance; b. By the enforcement of existing City codes and ordinances. 3. Financial Building Rehabilitation Assistance. The Agency, with funds available to it, may promulgate rules, guidelines and eligibility requirements for the purpose of establishing below-market or market rate loan programs, grants, or other financial incentives to advance the goals and objectives of the Central Eugene Downtown Urban Renewal District Plan. Loans, grants or incentives provided by the Agency may be used for voluntary rehabilitation of buildings, façade improvements, provision of amenities on private property in compliance with adopted design guidelines and standards, construction of new buildings, pre-development assistance, connecting to Agency- provided underground electrical and communication systems, or other activities approved by the Agency . I. OWNER PARTICIPATION It is the intent of the Renewal Agency to provide low-interest loans to assist develop- ment and redevelopment of private property in the district. Property owners within the plan area proposing to improve their properties and receiving financial assistance from the Agency shall do so in accordance with all applicable provisions of this plan and with all applicable codes, ordinances, policies, plans, and procedures of the City of Eugene. Section 700 – Methods for Financing the Projects The Agency may borrow money and accept advances, loans, grants, and other legal forms of financial assistance from the Federal government, the State, City, County, or other public body, or from any source, public or private, for the purposes of undertaking and carrying out this development plan, or may otherwise obtain financing as authorized by ORS Chapter 457. Ad valorem taxes, if any, levied by a taxing body upon the taxable real and personal property situated in the urban renewal area, shall be divided in accord with and pursuant to ORS 457.420 through 457.450. The Agency shall adopt and use a fiscal year ending June 30 accounting period. Each year the agency shall develop a budget in conformance with the provisions of ORS Chapter 294 and ORS 457.460 which shall describe sources of revenue, proposed expenditures, and activities. The Urban Renewal Agency Board of Directors must approve all projects, other than loans, in excess of $250,000. Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 12 Section 800 – Annual Financial Statement Required A. By August 1 of each year, a financial statement shall be prepared and provide information containing: 1. Amounts of money received during the preceding fiscal year under ORS 457.420 to 457.460 and from indebtedness incurred under ORS 457.420 to ORS 457.460; 2. The purposes and amounts for which any money received under ORS 457.420 to 457.460 and from indebtedness incurred under ORS 457.420 to 457.460 were expended during the preceding fiscal year; 3. An estimate of monies to be received during the current fiscal year under ORS 457.420 to 457.460 and from indebtedness incurred under ORS 457.420 to 457.460; 4. A budget setting forth the purposes and estimated amounts for which the monies which have been or will be received under ORS 457.420 to 457.460 and from indebtedness incurred under ORS 457.420 to 457.460 are to be expended during the current fiscal year; and 5. An analysis of the impact, if any, of carrying out the urban renewal plan on the tax collections for the preceding year for all taxing districts included under ORS 457.430. B. The statement shall be filed with the City Council and notice shall be published in a newspaper of general circulation within the City that a statement has been prepared and is on file with the City and Agency and the information contained in the statement is available to all interested persons. The notice shall be published once a week for not less than two successive weeks before September 1 of the year for which a statement is required in accordance with ORS 457.115. The notice shall summarize the information required under paragraphs 1 to 4 of this section and shall set forth in full the information required in paragraph five of this section. Section 900 – Citizen Participation The activities and projects defined in this plan, development of subsequent plans, procedures, activities, and regulations and the adoption of amendments to this plan shall be undertaken with the participation of citizens, owners, tenants as individuals, and organizations who reside within or who have financial interest within the project area together with the participation of general citizens of the city. An advisory committee authorized by the Urban Renewal Agency Board of Directors will advise on the activities of this urban renewal district and will periodically evaluate the plan and its implementation processes. Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 13 Section 1000 – Non-Discrimination In the preparation, adoption, and implementation of this plan no public official or private party shall take any action to cause any person, group or organization to be discriminated against in a manner that violates Section 4.613 of the Eugene Code, 1971. Section 1100 – Recording of this Plan A copy of the City Council’s ordinance approving this plan shall be recorded with the recording officer of Lane County. Section 1200 – Procedures for Changes or Amendments The plan will be reviewed and analyzed periodically and will continue to evolve during the course of project execution and ongoing planning. It is anticipated that this plan will be changed or modified from time to time or amended as development potential and conditions warrant, as planning studies are completed, as financing becomes available, or as local needs dictate.Types of Plan Amendments are: A. Type One Amendment– Substantial Change Requiring Special Notice Type One amendments shall require approval per ORS 457.095, and notice as provided in ORS 457.120. Type One plan changes will consist of: 1. Increases in the urban renewal area boundary in excess of one percent (1%) of the existing area of the renewal plan. 2. Increases in the maximum indebtedness that can be issued or incurred under this plan. B. Type Two Amendment – Substantial Change Not Requiring Special Notice Type two amendments shall require approval per ORS 457.095, but will not require notice as provided in ORS 457.120. Type two amendments will consist of: 1. The addition of improvements or activities which represent a substantial change in the purpose and objectives of this Plan, and which cost more than $500,000. The $500,000 amount will be adjusted annually from the year 2003 according to the "Engineering News Record" construction cost index for the Northwest area. 2. Any change or provision of this Plan which would modify the goals and objectives or the basic planning principles of this plan. Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 14 Substantial changes shall include, but are not limited to, revisions in project boundaries, land uses, project activities, street system changes, major relocation of the downtown transit station, or other elements which will change the basic planning principles of this plan. C. Type Three Amendment – Minor Amendment Minor amendments may be approved by the Renewal Agency in resolution form. Such amendments are defined as: 1. Amendments to clarify language, add graphic exhibits, make minor modifications in the scope or location of improvements authorized by this Plan, or other such modifications which do not change the basic planning or engineering principles of the Plan. 2. Acquisition of property for purposes specified in Section 600C3 of this plan. 3. Addition of a project substantially different from those identified in Sections 600 of the Plan or substantial modification of a project identified in Section 600 if the addition or modification of the project costs less than $500,000 in 2003 dollars. 4. Increases in the urban renewal area boundary not in excess of one percent (1%). D. Amendment to the City’s Comprehensive Plan or any of its Implementing Ordinances Should the City Council amend the City’s comprehensive plan or any of its implement- ing ordinances and should such amendment cause a substantial change to this plan, the City Council amending action shall cause this plan to be amended provided that the Planning Commission and City Council approve the amendment. In the event of such amendment, the text and/or exhibits of this plan, if applicable to this plan, shall be changed accordingly by duly recorded ordinance . Section 1300 – Duration and Validity of Approved Plan A.Duration of Urban Renewal Plan This plan shall remain in full force and effect through June 30, 20242030.The Agency shall not issue indebtedness that matures after June 30, 2030, and the Plan shall remain in effect until all indebtedness has been repaid. The City Council shall conduct periodic reviews in 2009 2015and20192025. Reviews will consider extending the duration beyond 20292030; modifying the boundaries; modifying the maximum indebtedness; and modifying eligible project activities to be undertaken in the Downtown Urban Renewal District. The review process shall include a review and recommendation from the Eugene Redevelopment Advisory Committee. Such review will include a public hearing. Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 15 B.Validity Should a court of competent jurisdiction find any word, clause, sentence, section, or part of this plan to be invalid, the remaining words, clauses, sentences, section, or parts shall be unaffected by any such finding and shall remain in full force and effect for the duration of the plan. Section 1400 – Maximum Indebtedness A. Maximum Indebtedness The sum of $33,000,000 was established in 1998 as the maximum amount of new indebtedness which could be issued or incurred under this Plan after June 1, 1998.The 2007 plan amendment increased the maximum indebtedness amount by $40 million, to a total of $73 million. The maximum indebtedness limit established by this Section 1400 does not apply to or limit: 1. The obligation of the Agency to pay interest on indebtedness issued or incurred under this Plan; 2. Any indebtedness issued to refund indebtedness issued or incurred under this Plan, to the extent that the refunding indebtedness does not exceed the principal amount of the refunded indebtedness, plus the amount of the refunding indebtedness that is used to pay costs of the refunding; and This amount does not include funds to pay interest on that indebtedness nor 3. fFunds to repay indebtedness existing on the date of the 1998 amendment. B.City-Wide Special Levy. Option One and its city-wide special levy, as described in ORS 457.435(2)(a), were chosen in 1998 as the method for collecting ad valorem property taxes sufficient to pay when due, indebtedness issued or incurred to carry out the Urban Renewal Plan for the Central Eugene ProjectDowntown Urban Renewal District as permitted by section 11 (16), Article XI of the Oregon Constitution. Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 16 Part 2 – Exhibits Exhibit A: Development Plan Boundary Downtown District Urban Renewal Plan - Circulation Draft of MayJune 2007 17 DOWNTOWN URBAN RENEWAL DISTRICT REPORT For the Downtown Urban Renewal District Plan Originally Adopted July 3, 1968 by Eugene Urban Renewal Agency Ordinance No. 257 Amended December 19, 1968 by Eugene City Council Ordinance No. 1609 Amended November 8, 1989 by Eugene City Council Ordinance No. 19648 Amended June 1, 1998 by City Council Ordinance No. 20120 Amended September 13, 2004 by City Council Ordinance No. 20328 Amended August _, 2007 by City Council Ordinance No. _____ City of Eugene ACKNOWLEDGEMENTS Eugene City Council and Urban Renewal Agency Board Mayor Kitty Piercy Bonny Bettman Alan Zelenka Andrea Ortiz Chris Pryor Mike Clark George Poling Jennifer Solomon Betty Taylor City of Eugene Staff Dennis Taylor, City Manager Susan Muir, Director of Planning and Development Department Denny Braud Sue Cutsogeorge Amanda Nobel Mike Sullivan Richie Weinman Sarah Zaleski Consultant Charles Kupper, Spencer & Kupper, Portland, Oregon TABLE OF CONTENTS Chapter 1: Introduction........................................................................................................1 Chapter 2:Description of Physical, Social, Economic, and Environmental Conditions in the Plan Area...............................................................................2 Chapter 3: Expected Impact, Including Fiscal Impact of the Plan, in Light of Added Services or Increased Population...........................................................6 Chapter 4: Reasons for Selection of the Plan Area............................................................7 Chapter 5: Relationship Between Existing Conditions and Each Project Activity Undertaken Under the Plan...............................................................................8 Chapter 6:Estimated Total Cost of Each Project or Activity, Sources of Money, and Anticipated Completion Date for Each Project or Activity............................9 Chapter 7:Estimated Amount of Money and Anticipated Year in Which Indebtedness will be Retired or Otherwise Provided For Under ORS 457.420 to 457.460..........................................................................................10 Chapter 8:Financial Analysis of the Plan with Sufficient Information to Determine Feasibility.......................................................................................15 Chapter 9: Fiscal Impact Statement That Estimates the Impact of the Tax Increment Financing, Both Until and After The Indebtedness is Repaid, Upon All Entities Levying Taxes Upon Property in the Urban RenewalArea..................................................................................................16 Chapter 10:RelocationReport............................................................................................19 Chapter 11:Appendices......................................................................................................20 REPORT ON THE DOWNTOWN URBAN RENEWAL DISTRICT PLAN INDEX OF TABLES Page Table 1 Area Acres by Generalized Land Use 3 Table 2 Zoning in Acres 3 Table 3 Condition of Principal Buildings 4 Table 4 Assessed Value of the Frozen Base 5 Table 5 List of Project Activities and Their Estimated Cost 9 Table 6 Resources and Requirements of Plan Activities 12 Table 7 Revenue Impact on Overlapping Jurisdictions 18 REPORT ON THE DOWNTOWN URBAN RENEWAL DISTRICT PLAN Chapter 1: Introduction The 2007 Amendment to the Downtown Urban Renewal District Plan makes the follow- ing changes to Report on the Plan: Provides new cost estimates of project activities to be undertaken Describes the change due to the extension of the duration of the Plan to the year 2030 Describes the change due to the increase in the maximum indebtedness Provides new information on the impact that carrying out the Plan will have on other taxing bodies under Measure 50. The City of Eugene has prepared an amendment to the Urban Renewal Plan Update of the Downtown Urban Renewal District Plan, originally adopted on July 1968 and as modified December 1968, December 1989, June 1998 and September 2004. The Plan Update is based on goals and objectives from the City of Eugene Downtown Plan adopted in February 2004. This report accompanies the Urban Renewal Plan and consists of text, tables, and appendices. The Downtown Urban Renewal District area contains approximately 70 acres. The legal description for the area is in Section 300 of the Plan. The area is further described on graphic exhibits included in that Plan. Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 1 Chapter 2: Description of Physical, Social, Economic, and Environmental Conditions in the Plan Area Note: This description and assessment is only current to the identified dates. A. Physical Conditions 1. Land Use The Downtown Urban Renewal District encompasses about 70 acres. The total incorporated land area for the City of Eugene as of June 2006 is 26,560 acres. The Downtown Urban Renewal District represents about 0.003 percent of the City’s total land area. This area combined with the Riverfront Urban Renewal District, approximately 178 acres, equals 248 acres or less than one percent of the City’s total land area in renewal districts. This one percent is well within the 15 percent maximum allowed by Oregon State law. 2. Existing Land Use and Zoning Table 1 shows generalized land use as of May 2007 by category. Table 2 shows the zoning as of May 2007 by zoning district. A description of each use permitted is found in the City Zoning Code. The Renewal Area and zoning maps are located in the Appendix, Exhibits A and B. Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 2 Table 1 Area Acres by Generalized Land Use May 2007 Data Generalized Land Use Acres Communication 0.6 Education 0.4 Transportation 1.8 Government 1.4 Wholesale Trade 0.1 Industrial 0.2 Religious, Charitable 0.2 Recreation 6.9 Residential, Multi-Family 0.4 General Services 8.2 Parks 0.8 Retail Trade 18.2 Vacant 0.1 Streets, Alleys, Roads 30.7 Total 70.0 Table 2 Zoning in Acres May 2007 Data Zone Description Zoning Acres Percent Community Commercial C2 2.7 3.9% Central Business C3 63.0 89.9% Historic H 0.3 0.4% Public Land PL 4.0 5.7% Special Development - Downtown Westside Special Area Zone S 0.1 0.1% Light Medium Industrial I-2 -- -- S-F Fifth Avenue Special Area S -- -- Total 70.0 100.0% Note: Totals may not add due to rounding. 3. Conditions of buildings and dwelling units The conditions of 92 principal buildings within the Renewal Area were rated according to the Lane County assessment records, current to the date shown. The conditions of these buildings were categorized as good, fair, or poor through a rating system based on a physical inspection and rated according to a physical depreciation guide. This guide takes into account the age of the building. Table 3 is a summation. It is assumed that buildings in poor condition, and some buildings in fair condition, may require rehabilitation if economically feasible. Some rehabilitation may have taken place since the inspection date. Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 3 Table 3 Condition of Principal Buildings September, 1985 data – LCOG Research Section Lane County 1982 Physical Depreciation Index ConditionCommercialDwelling Units Good 39 0 Average 30 0 Poor 22 1 (6) TOTAL 91 1 (6) (*) = number of dwelling units 4. Sanitary sewer system The sanitary sewer system was upgraded as part of the original Renewal project. This upgrading consisted of relining the existing lines with plastic pipe liners. Each building was reconnected at that time. The engineering analysis showed that the existing capacity was sufficient. 5. Water delivery system According to the Eugene Water and Electric Board, the water delivery system throughout the original Downtown Urban Renewal District is in sufficient condition and of sufficient capacity to support additional development. 6. Streets, Alleys, Sidewalks, etc. The major portions of the streets, alleys and sidewalks within the Renewal Area were upgraded as part of the original project and remain in good condition. The remaining areas to be upgraded are adjacent to proposed development sites and will be rebuilt concurrent with the new development. B. Social Conditions According to a 2004 Planning and Development Department analysis, there are 196 housing units within the Downtown Urban Renewal District. C. Economic Conditions 1. Value of Property The 2006/2007 taxable assessed value for the entire City is $10,258,394,100. The total assessed value for the Downtown Urban Renewal District as of FY2006/2007 is $152,624,683. Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 4 The chart below demonstrates that the frozen base for the combined urban renewal districts is well within the 15% limit imposed by ORS 457. Table 4 Assessed Value of the Frozen Base Downtown Total as a % Urban Renewal Riverfront Urban of City of DistrictRenewal District Total Eugene AV Frozen Base $31,386,991 $50,609,448 $81,996,439 0.8% 2. Relationship of the Value of Improvements to the Value of Land The current ratio of improvement to land value within the Renewal Area, based on 2006/2007 assessment records and excluding tax exempt property, is 8.1 to 1. The accepted improvement to land value ratios of healthy, viable, and prosperous areas in Oregon cities are 3.0 to 1 and greater. D. Environmental Conditions Environmental conditions within the Downtown Urban Renewal District are not expected to change. The area has been an established commercial business area for many years. Most streets, sidewalks, alleys, and sewers are in place and will be upgraded and maintained. The public park areas within the project area will be upgraded and maintained as needed. New street trees are to be planted as part of the project. This landscaping should provide a positive environmental impact. Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 5 Chapter 3: Expected Impact, Including Fiscal Impact of the Plan, in Light of Added Services or Increased Population Development within the Renewal Area is not expected to have a significant impact on the 4-J School District. The zoning criteria of C2 and C3 does not encourage residential housing. Past experience shows residential complexes developed around the project area have focused on adult housing. Based on this experience, there should be no or th minimal impact on the local kindergarten through 12 grade schools. The added adult population created by such housing projects may impact Lane Community College, particularly the Downtown campus, with increased registration. The 2007 Amendment follows the passage of Ballot Measure 50 and its implementation rules. In the Measure 50 environment, taxing bodies “forego” revenue produced by the growth in values over a renewal area’s frozen base. The property tax impacts of carry- ing out this amended Plan are shown in Chapter 9 of this Report. Projects within the Renewal Plan have been chosen for the way in which they support planning efforts for the downtown area, such as the Downtown Plan. These planning documents were based on assumptions about the expected need for new and improved services due to population growth and other factors. The Renewal Plan is expected to facilitate improvements within the district, according to the planning efforts for the area. One of the principal objectives of the Renewal Plan is to improve the existing taxable property. Areas adjacent to the plan area are also expected to become more viable. From FY2007/2008 through the remaining life of the district, property values in the district are estimated to increase by over $185 million. The development site is not expected to significantly impact the school system. Pro- jects in the plan address the expected impacts of area development on police services, transportation, utilities, and other public services. The Urban Renewal Agency will use tax increment revenues to carry out the plan. The use of tax increment revenues will affect the property tax revenues and bonded debt tax rates of other taxing jurisdictions that share assessed value with Eugene’s Urban Renewal Agency. The tax impacts of the Renewal Plan are discussed in detail in Chap- ter 9 of this report. Many other positive impacts are expected from completion of the projects included with- in the Renewal Plan, such as: Better connections between major areas of the downtown, such as the core area, the riverfront area, and the University of Oregon Higher concentration of mixed uses in the plan area, including government, retail and commercial businesses More public amenities, such as parks, plazas, recreation areas, and parking Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 6 Chapter 4: Reasons for Selection of the Plan Area The plan area of the Downtown Urban Renewal District (formerly the Central Eugene Project) was adopted in 1968. This area was selected after comprehensive community process under the guidance of the Federal Department of Housing and Urban Devel- opment (HUD). The goals of the Downtown Urban Renewal District plan are reducing blight and improving the function, condition, and appearance of the plan area. According to ORS 457.010, "blighted areas" means areas that, by reason of deteriora- tion, faulty planning, inadequate or improper facilities, deleterious land use or the exist- ence of unsafe structures, or any combination of these factors, are detrimental to the safety, health or welfare of the community. A blighted area is characterized by the exist- ence of one or more of the following conditions: (a) The existence of buildings and structures, used or intended to be used for living, commercial, industrial or other purposes, or any combination of those uses, that are unfit or unsafe to occupy for those purposes because of any one or a combination of the following conditions: (A) Defective design and quality of physical construction; (B) Faulty interior arrangement and exterior spacing; (C) Overcrowding and a high density of population; (D) Inadequate provision for ventilation, light, sanitation, open spaces and recreation facilities; or (E) Obsolescence, deterioration, dilapidation, mixed character or shifting of uses; (b) An economic dislocation, deterioration or disuse of property resulting from faulty planning; (c) The division or subdivision and sale of property or lots of irregular form and shape and inadequate size or dimensions for property usefulness and development; (d) The laying out of property or lots in disregard of contours, drainage and other physi- cal characteristics of the terrain and surrounding conditions; (e) The existence of inadequate streets and other rights of way, open spaces and utilities; (f) The existence of property or lots or other areas that are subject to inundation by water; Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 7 (g) A prevalence of depreciated values, impaired investments and social and economic maladjustments to such an extent that the capacity to pay taxes is reduced and tax receipts are inadequate for the cost of public services rendered; (h) A growing or total lack of proper utilization of areas, resulting in a stagnant and unproductive condition of land potentially useful and valuable for contributing to the public health, safety and welfare; or (i) A loss of population and reduction of proper utilization of the area, resulting in its further deterioration and added costs to the taxpayer for the creation of new public facilities and services elsewhere. Chapter 5: Relationship Between Existing Conditions and Each Project Activity Undertaken Under the Plan All public improvements, building rehabilitation loan programs, administrative and tech- nical support, property acquisition and redevelopment authorization, and relocation activities (if any) set forth in Section 600 of the Plan are intended to correct the defici- encies described in this report. Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 8 Chapter 6: Estimated Total Cost of Each Project or Activity, Sources of Money, and Anticipated Completion Date for Each Project or Activity The 2007 Amendment includes a table showing the project activities to be carried out following the adoption of the amendment and the estimated cost. Table 5 shows that urban renewal financing is estimated to provide $40 million (or approxi- mately 20%) of funding out of an estimated total of $200 million of public and private investment from FY2007/2008 through FY2029/2030. Table 5 List of Project Activities and The Estimated Cost Project Activity Total Estimated Cost Public Improvements 1. Street, curb & sidewalk improvements $1,000,000 2. Public utilities 5,000,000 3. Streetscape projects 1,000,000 4. Pedestrian, bike & transit improvements 0 5. Public parks, public plazas, rest rooms, and open spaces 0 6. Public parking and public transportation facilities 16,000,000 7. Other public facilities 0 Total Public Improvements $23,000,000 Acquisition & Redevelopment 1. Property acquisition $15,000,000 2. Property redevelopment 125,000,000 Total Acquisition & Redevelopment $140,000,000 Administrative Activities (through FY2029/2030) 10,000,000 Development & Redevelopment 10,000,000 Rehabilitation & Conservation 17,000,000 TOTAL PROJECTS – All Funding Sources $200,000,000 Projects Funded from Urban Renewal Agency $40,000,000 Projects Funded from Private Sources and Other Federal, State 160,000,000 and Local Government Resources Total Funding for All Projects $200,000,000 Note: Off-site Facilities and Relocation Activities are included in other categories in this chart. Project activities shown in Table 5 will begin in FY2008/2009. Decisions on priori- ties of funding for project activities will be made by the Eugene Urban Renewal Agency in its annual budget process, and regular Agency meetings, all of which are open to the public. The Eugene Redevelopment Advisory Committee advises devel- opment staff on budget and project priorities for the district. All urban renewal fund- ed activities are expected to be completed by June 30, 2030. Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 9 Chapter 7: Estimated Amount of Money and Anticipated Year in Which Indebtedness will be Retired or Otherwise Provided For Under ORS 457.420 to 457.460 Table 6 sets out the estimated costs of the projects to be completed under the Renewal Plan. The total cost of all projects is estimated at $200 million between FY2007/2008 and FY2029/2030. The projects will be funded with a combination of urban renewal tax increment financing under ORS 457 and other sources. The Urban Renewal Agency expects to apply for funding from other federal, state and local grants in order to com- plete the projects. Private developers will fund some of the project costs. In addition, the public facilities included within the plan may also be funded in part with other public funds, such as systems development charges and general obligation bonds, among other sources. The project activities will begin immediately in FY2007/2008 and will continue through the final year of the Renewal Plan, in FY2029/2030. When the plan was amended in June of 1998, the City Council added a maximum indebtedness figure of $33 million. That figure was based on the estimated cost of building a new main library, plus contin- uation of the administrative costs in the district, preparing annual financial statements, disposing of the Sears building, overseeing completion of the Broadway Place and Overpark elevator projects, and administering the loan portfolio. It excluded existing debt. Based on the estimated cash flow for the district between now and FY2029/2030, the current maximum indebtedness figure will be insufficient to cover anticipated expen- ditures for the West Broadway redevelopment projects. This is why the Agency is proposing a plan amendment at this time. The current plan amendment proposes an increase in maximum indebtedness of $40 million, resulting in a revised maximum indebtedness figure of $73 million. This revised maximum indebtedness amount is the estimated minimal amount needed to accomplish the projects under the current project assumptions. The West Broadway redevelopment project is in a conceptual stage and there are a number of factors that could increase the cost of the project, as well as increase the Agency’s participation in the project. Some of those factors are: Because the project has not yet been designed and is still in the conceptual stage, additional refinement of the project details could result in a higher cost for the overall project. Depending on the specific properties to be acquired and the costs of those properties, the overall cost for property acquisition could increase. Construction costs could also increase due to the level of inflation and interest rates. The Mayor has appointed a citizen advisory committee to work with the develop- ers to refine the scope of the project, including items such as public open spaces. Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 10 If the advisory committee recommends including public amenities that were not envisioned by the developer in their concept, the result could be higher construc- tion costs and potentially higher costs to the Agency for the public share of the project costs. There is a factor in the concept for the cost of utilities and off-site improvements, such as sidewalks. The developer proposed that the Agency pay these costs. As the scope of these items is refined, there could be additional costs to the Agency. Any cost for transitioning or relocating existing businesses has not been factored into the estimates. There is always a risk of future legislative changes with urban renewal programs. As the West Broadway redevelopment project scope is refined and cost estimates are solidified, the minimal amount for maximum indebtedness increase of $40 million may constrain the Agency’s ability to take on additional project costs or to conduct the property transactions in the most effective manner for the developers and the Agency. The $40 million increase in maximum indebtedness also does not include sufficient authority for the Agency to spend tax increment funds generated by the West Broadway redevelopment projects on any future redevelopment efforts. This means that the Agency will need to revise the maximum indebtedness limit in the future if another development project is to be undertaken with tax increment financing in the district. This plan amendment also includes extending the termination date to June 30, 2030. The reason for the extension is to maximize the district’s financial capacity to undertake a large redevelopment project.Holding all else constant, a shorter district termination date would mean having a smaller debt capacity. Preliminary calculations indicate that the debt capacity reduction could be in the 15% to 20% range.The amount of lower debt capacity could range from $2-$3.5 million, depending on the future revenues of the Agency, interest rates, and lender requirements around debt protection measures. The Agency could respond to by (i) making up for a smaller debt capacity by requesting use of other City resources outside of the urban renewal district; or (ii) pledging additional security for the borrowing, such as a guarantee from the City’s general fund. There is, however, a practical limit to the amount of debt that the Agency can take on based on the level of projected revenues, even if the City guarantees the debt. The timing and amounts for individual project activities will be determined by the Urban Renewal Agency each year during the annual budget process. The Eugene Redevelop- ment Advisory Committee will provide advice on improvements to the district and the expenditure of funds. Completion dates for individual activities may be affected by changes in local economic and market conditions, changes in the availability of tax increment funds, and changes in priorities for carrying out project activities. Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 11 Chapter 8: Financial Analysis of the Plan with Sufficient Information to Determine Feasibility The financial analysis of the plan shown in Table 6 includes the anticipated tax increment revenues and the indebtedness capacity of those revenues. The analysis shows that the anticipated tax increment revenues are based on reasonable projections of new develop- ment and appreciation in existing property values. The projection of tax increment reve- nues is based on the following assumptions: Existing property assessed values will increase by 2% per year. New development assumptions are for an estimated $186 million of investment to be complete by 2010, including a mix of retail, housing, office space, and parking. The housing portion of the development will receive a Multi-Unit Property Tax Exemption for 10 years and a low income housing exemption for 20 years. Tax rates are projected to go down over time, due to the Oregon statute that says that certain urban renewal plans may only collect tax increment on permanent tax rates or bonds and levies approved by voters prior to October 6, 2001.In particular, bonded debt tax rates will be reduced as bonds approved by voters prior to October 6, 2001 are retired. The projections result in total resources between FY2007/2008 and FY2029/2030 of just * under $135 million. These revenues will support $40 million of increased maximum indebtedness proposed under this Plan Amendment. The $40 million maximum indebted- ness figure will not allow for the Agency to spend the total amount of revenue that the district is expected to generate during the remaining term of the district, however. Any additional expenditure in the plan that will be funded with tax increment funds will require a future substantial plan amendment. In addition to the West Broadway redevelopment projects, the revenues will be sufficient to pay for administrative activities, including an allocation of central service overhead costs. Those costs are projected to increase over time due to inflation of 3% per year. The Urban Renewal Agency will also carry a reserve on outstanding bonds until those bonds are fully paid off, as well as a balance equal to two months of operating costs each year, per City of Eugene financial policy. * Note that the proposed plan amendments, including the maximum indebtedness increase, will be reviewed by Planning Commission, the overlapping taxing districts and the general public. After this review, the City Council may choose a different maximum indebtedness figure. The financial effect of a different maximum indebtedness figure would be that either more or fewer projects (depending on whether the new figure was higher or lower) could be accomplished in the out-years of the Renewal Plan. Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 15 Chapter 9: Fiscal Impact Statement That Estimates the Impact of the Tax Increment Financing, Both Until and After The Indebtedness is Repaid, Upon All Entities Levying Taxes Upon Property in the Urban Renewal Area Taxing bodies that overlap with the Urban Renewal Agency are affected by the use of tax increment funds to implement the Renewal Plan. When a district is first created, the assessed value within the boundaries is established as the “frozen base”. In theory, if urban renewal efforts are successful, the value of the district will grow above the base. That increase is called the “incremental value” or “excess value”.Property taxes from the overlapping jurisdictions (schools, general governments, bonds) are then divided between the jurisdictions that continue to receive taxes on the frozen base, and the urban renewal agency that receives taxes on the incremental value. In general, urban renewal does not directly affect an individual school system’s budget because schools are funded by the state on a per-pupil basis. On a state-wide basis, if there are less tax revenues going to schools because of urban renewal districts, then the state provides more general funds to make up the per-pupil funding for all the schools. If a school district is in Measure 5 tax rate compression due to a local option levy, how- ever, the urban renewal effect is different. For school districts that have a local option levy, urban renewal results in the ability for the district to collect a higher level of revenue from the local option levy. This occurs because the portion of school taxes related to the incre- mental property value within the district does not count towards the school tax $5/$1000 Measure 5 tax rate cap.Rather, that amount of taxes counts towards the general government $10/$1000 Measure 5 tax rate cap. For other taxing jurisdictions, a share of property taxes from the “excess value” or “incre- mental value” is not collected by the overlapping jurisdictions during the period of an active district. Urban renewal nominally affects voter-approved local option levies and bonds because the affected district has less property value to levy taxes against, resulting in slightly higher tax rates. For the Downtown Urban Renewal District, the property taxes that may be used to fund urban renewal activities is limited to the permanent tax rates and any bonds or local option levies that were approved by voters prior to October 6, 2001. This means that the projected tax rate used to generate urban renewal revenues will be reduced over time as existing bonds are paid off. Urban renewal is counted towards the Measure 5 general government tax rate cap of $10/$1000 of assessed value. In Eugene, the general government category of taxes is not currently in Measure 5 tax rate compres- sion, so this is not a significant factor in evaluating urban renewal tax increment revenues. The incentive for the overlapping districts to support urban renewal is higher property tax revenues in the long run. When the district is ended, the overlapping taxing districts are able to tax the entire value within the district. Under the theory of urban renewal, this value is higher than it would have been if there had been no district in effect. Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 16 The estimated amount of urban renewal taxes to be divided over the remaining term of the Renewal Plan (net of discounts, delinquents, etc.) is shown in Table 7. Only the perm- anent tax rates of the overlapping jurisdictions are considered in this analysis because there are no local option levies included in urban renewal revenues for the Downtown Urban Renewal District, and bonded debt tax rates will be reduced from year to year until the existing bonds are paid off. As can be seen, in FY2007/2008, it is estimated that the City of Eugene would forego about $840,000 of revenue because of the Downtown Urban Renewal District. In FY2029/2030, when the district is terminated, the City of Eugene is estimated to receive $2.2 million of additional tax revenue. Lane County is estimated to forego $150,000 of revenue in the first fiscal year, and to benefit by $400,000 of additional tax revenue when the district is terminated in FY2029/2030. The combined school districts are estimated to forego $670,000 of revenue in the first fiscal year, and to benefit by $1.8 million of addi- tional tax revenue when the district is terminated in FY2029/2030. As mentioned above, however, the impact on schools is really an impact on the state’s budget because schools are mainly funded on a per-pupil funding formula rather than by the level of property tax dollars generated within their boundaries. This analysis does not take into account the effect of terminating the urban renewal district on any local option levy that the schools might have outstanding in FY2029/2030. Because the Downtown District Urban Renewal Plan took steps to be “grandfathered” under the provisions of Measure 50, the district is allowed to levy a higher amount of taxes than would otherwise be allowed for the existing life of the district. The base amount allowed to be levied is the “division of tax” levy, which is equal to the incremental property value in the district times the overlapping tax rate for all jurisdictions (City, County, schools, bonds). In addition, the “grandfather” provision allows the Downtown District Urban Renewal District to levy a “special levy” in order to protect the level of property tax collec- tions after implementation of the provisions of Measure 50. In FY2006/2007, the special levy tax rate was $0.1888/$1000 of AV and the “division of tax” levy was $0.1936, for a total of $0.3824/$1000 of AV. When the district has collected sufficient revenues to fund the current $33 million of projects included under the existing maximum indebtedness cap, the district will no longer qualify for the special levy and taxes will go down for Eugene taxpayers which is anticipated to occur not later than FY2008/2009. Table 7 on the following page provides details of the impact of carrying out the 2007 Amendment to the Plan. Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 17 Chapter 10: Relocation Report A. Requirement An analysis of the existing residences of businesses required to relocate permanently or temporarily as a result of Agency actions under ORS 457.170. Response The plan provides for the acquisition and/or property. A redevelopment concept that th includes West Broadway and portions of Willamette, Olive and 10 Avenue involves the potential acquisition of about 25 parcels for redevelopment of housing and commercial activities. When the redevelopment concept is refined a relocation plan will be created. This model may be replicated in the future, in some form, in other parts of the district. B. Requirement A description of the methods to be used for the temporary or permanent relocation of persons living in and businesses situated in, the Urban Renewal Area in accordance with ORS 281.045 through 281.105. Response No specific relocation activity is identified in the plan. If urban renewal assistance results in relocation requirements, a relocation plan will be developed for that purpose. Relocation activities and assistance would be provided in accordance with ORS 281.045 through 281.105. C. Requirement An enumeration, by cost range, of the existing housing units in the plan area to be destroyed or altered and new units to be added. Response No specific existing housing units are proposed to be removed by actions of this plan. However, voluntary housing rehabilitation programs have been provided by proposing a rehabilitation loan fund, where and if and when funds are available, housing owners may, at their option, avail themselves of below-market rehabilitation loans. Such loans may be made directly by the Renewal Agency or by local finan- cial institutions which participate in loan programs involving the joint participation of the Agency and local financial institutions. Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 19 D. Requirement A description of new residential units which are likely to be constructed within the urban renewal area. Response Some new residential units are expected to be constructed within the plan area. Chapter 11: Appendices Exhibit A: Urban Renewal Boundary Exhibit B: Zoning District Map Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 20 Exhibit A – Area Boundary Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 21 Exhibit B – Zoning District Map Report on the Downtown Urban Renewal District Plan – Circulation Draft of June 2007 22 ATTACHMENT D Council and URA Action History: West BroadwayRedevelopment Project, BEDI, Section 108, & Downtown Urban Renewal District 1. West Broadway Redevelopment Project th URA – 1999: The first Request for Proposals (RFP) for the sale and development of the 10 & Charnelton site was issued. Responses were limited, and the URA deferred review of the responses due to pending discussion on potential sites for the new Federal Courthouse and City Hall. th URA – December, 2002: URA approved the issuance of a second 10 and Charnelton RFP. In May 2003, the URA received four responses and selected the Oregon Research Institute (ORI) project. ORI later decided to forgo the purchase and development of the site. CC –January 9, 2006: Council discussed the Connor and Woolley/Opus development proposal for West Broadway, including tools that the City Manager and staff might use to facilitate the acquisition of property that may be needed for any comprehensive redevelopment of the West Broadway area. The council passed a motion 7:1 to “direct the City Manager to work with Connor and Woolley on developing a more detailed proposal related to West Broadway development to be brought back to the council. This motion in no way endorses the concept of the proposal.” The City Manager understood from the discussion and action that everything short of condemnation should be pursued in order to assist in the redevelopment of the West Broadway area. th ERAC – April 20, 2006: Eugene Redevelopment Advisory Committee (ERAC) discussed the 10 and Charnelton RFP and encouraged a comprehensive review of how each project proposal advances the Downtown Plan and contributes to this area of downtown. th PC – April 24, 2006: Planning Commission (PC) reviewed the 1999 and 2002 versions of the 10 & Charnelton RFP and provided input regarding the issuance of a new RFP for the site. Generally, PC encouraged use of the policies and strategies in the Downtown Plan as the primary source for gauging desirable projects for the site. It also favored a less prescriptive RFP approach in comparison to the 1999 criteria to attract a broad mix of possible uses encourage creativity in the development of the site and inspire investor confidence. April 2006: ? Connor and Woolley/Opus announced that the West Broadway project was no longer viable, primarily because of an inability to acquire the property needed for the development envisioned. Following the announcement, staff began exploring ways the City could assist in assembling land for the potential redevelopment, including the possibility of acquiring purchase options on the properties, with the intention of bringing the purchase options, once acquired, to the URA for direction. th URA – May 24, 2006: URA approved the issuance of the third 10 & Charnelton RFP: Ms. Solomon, seconded by Ms. Ortiz, moved to approve the RFP for the sale and development th of the 10 Avenue and Charnelton Street development site and direct the City Manager to issue a request for proposals consistent with the preliminary schedule included in the draft RFP with final review of the RFP responses and approval of a project for the site provided by the Urban Renewal Agency. Vote: Passed 8:0. ~ Ms. Bettman, seconded by Mr. Kelly, moved to amend the Development Objectives to include “As a publicly solicited project with the potential for public subsidies and incentives this development addresses the needs of the community. More housing units and varied housing options are needed to accommodate projected population demographics. Central housing is a key element in the Growth Management Policies and the Downtown Plan. Downtown housing is essential for creating the critical mass of residents to support retail and to concentrate populations where services already exist within walking distance and where transit and pedestrian amenities are easily and efficiently available. Housing downtown requires public sector support in order to be competitive. Preferred proposals for the site will recognize this development site as a rare opportunity to address the significant need for downtown housing units by providing for multi-storied, very high density housing, preferably accommodating ownership options as well as affordable units. Vote: Passed 7:0 (Pape not yet arrived) ~ Ms. Bettman, seconded by Mr. Kelly, moved to change the third point on page 390 of the AIS under “Active Uses” to read as follows: “3. Major employment center for very high quality jobs and extended hours of occupancy.” Vote: Passed 5:4 (Mr. Kelly, Ms. Bettman, Ms. Taylor, Ms. Ortiz, and the Mayor voting in favor and Mr. Poling, Ms. Solomon, Mr. Pape and Mr. Pryor voting in opposition.) ~ Mr. Kelly, seconded by Ms. Bettman, moved to amend the Development Objectives to delete the third point regarding a strong relationship with key tenants. Vote: Passed 8:0. th June 2, 2006 ?: 10 and Charnelton RFP issued with a submission due date of August 15, 2006. The due date was subsequently extended to September 15, 2006. The City received responses from Beam Development, TK Partners, and Sockeye. th Memo – July 26, 2006: Staff memo addressed the 10 & Charnelton RFP extension. The 30-day extension was intended to be responsive to development interest in the site and maximize the opportunity to attract quality proposals. th ERAC – September 28, 2006: ERAC reviewed the 10 & Charnelton RFP responses. ERAC was expanded specifically for review of the RFP responses to include expertise in the areas of sustainability (Josh Proudfoot, Good Company), financing (Erik Riechers, Pacific Continental Bank), and housing development (Jim McCoy, Housing and Community Services Agency). ERAC recommended that staff move forward with the selection of the TK Partners proposal. th URA – October 11, 2006: URA considered the 10 & Charnelton RFP proposals. Voting on a motion to select a proposal was postponed until October 16, 2006. th URA – October 16, 2006: URA selected the TK Partners proposal for the 10& Charnelton site: Moved to direct the Agency Director to enter into a 90-day exclusive negotiation period with TK Partners for the sale and development of the 10th and Charnelton development site based upon the proposal submitted and to return to the City Council, acting as the Urban Renewal Agency, with the proposed terms of the sale and development following the negotiation period. Vote: Passed 8:0. ERAC – November 21, 2006: ERAC reviewed the draft West Broadway RFQ. Committee members provided comments on criteria and timing of the RFQ. URA – November 27, 2006: URA provided direction to issue an RFQ for the redevelopment of West Broadway with approved criteria, with the following motion: Ms. Solomon seconded by Ms. Ortiz moved to direct the Agency Director to issue a Request for Qualifications (RFQ) for the redevelopment of West Broadway based on the draft RFQ criteria included in this agenda item with the responses to the RFQ to be brought back to the URA for consideration in early Spring 2007. The RFQ shall permit responses to deal with (a) property included only in a single option agreement for example the Centre Court Building and adjacent hole, (b) property included in more than one but less than all of the option agreements, or (c) property included in all of the option agreements. Include an additional criterion “Consistency with City Policies and Goals” in the RFQ evaluation criteria on council agenda packet pages 15 and 16; substitute the word “will” for the word “should” in subparagraphs 1 “Urban Design”, 2 “Active Uses”, and 3 “Sustainable Development” in the RFQ Evaluation criteria on council agenda packet pages15 and 16; add the phrase “and will contribute to an active around the clock 24-hour downtown” at the end of the first sentence in the paragraph under the heading “Active Uses” in the RFQ evaluation criteria on council agenda packet page15; delete the words “and assistance” from subparagraph 2 under the paragraph captioned “Public Benefit” in the RFQ evaluation criteria on page 16 of the council agenda packet; and add the following definition of the term mixed use in the RFQ evaluation criteria “Mixed use development refers to the practice of containing more than one type of use or activity in a building or set of buildings or blocks. The mix of uses can vary widely but typically includes a higher density combination of residential, commercial, industrial, office, institutional, or other activities. The uses are typically in close proximity, pedestrian-friendly and compatible with multi-modal transportation.” Vote: Passed 8:0. December 8, 2006: ? West Broadway RFQ issued with a submission due date of February 9, 2007. February 2007: ? The City received responses from Beam Development, CenterCal Properties, Greg Bryant, KWG Development Partners, and MidTown Development. KWG’s response addressed the entire West Broadway Redevelopment Area as well as the th 10 and Charnelton site, with the understanding that if not selected they would move forward with the initial TK Partners concept. ERAC – February 23, 2007: ERAC met to review the West Broadway RFQ responses. ERAC was expanded specifically for review of the RFQ responses to include representation from the arts (Tina Rinaldi), a Broadway tenant (Beth Little, Saturday Market), and a Downtown Vision Committee member (Greg McLauchlan). ERAC concluded that KWG had the strongest response to the objectives and criteria in the RFQ. The committee also expressed interest in the reuse potential of the Washburne and Centre Court buildings proposed by Beam. ERAC unanimously recommended that staff explore further the KWG and Beam responses. URA – March 12, 2007: URAwork session to review responses to the West Broadway RFQ. URA recognized Beam and KWG as qualified developers. Action was taken to direct staff to work with Beam and KWG to explore project concepts in more detail, with opportunities for community input, and to bring the following supplemental information back to the URA for review and approval: project cost and scale; development footprint; mix of uses; transfer of property; design and sustainability; parking requirements; feasibility of building reuse; preservation of Centre Court and Washburne buildings; preservation of local businesses; and level of financial participation from the URA. Memo – April 12, 2007: Staff memo addressed the financial capacity of the Downtown Urban Renewal District and the other tools to support downtown redevelopment. CC –April 16, 2007: Council workshop on downtown development issues. The council heard presentations from a mix of local developers and interested parties who described development opportunities, challenges, and policy alternatives. ERAC – April 19, 2007: ERAC reviewed the supplemental information submitted by Beam and KWG. ERAC unanimously voted in favor of moving forward in a positive manner with downtown development and concluded that the qualifications of both Beam and KWG were acceptable, with a primary preference for awarding the project to KWG and a secondary preference for awarding the project to Beam. CC & URA – April 25, 2007: Council work session on the financial tools available to support downtown redevelopment. URA work session reviewed the supplemental information submitted by Beam and KWG. URA deferred a decision on developer selection until after the scheduled April 30, 2007 public workshop. However, the URA did provide direction to the Agency Director to renew the purchase options on the Centre Court building and adjacent parcel (the hole), the Washburne Building, and the properties under option on the south side of Broadway between Olive and Charnelton streets (Diva to Shawmed property). Public Workshop – April 30, 2007 : A public workshop was held to gather input on the Beam and KWG concepts and the selection options being considered by the URA. The workshop was co- sponsored by ERAC, Citizens for Public Accountability (CPA), and the Eugene Area Chamber of th Commerce. Results of the workshop were included in the council packet for the May 9 meeting. Project Tour – May 5, 2007: The Mayor and Councilor Zalenka, along with City staff and representatives from CPA and the Chamber, toured projects completed by Beam and KWG. URA – May 9, 2007: URA considered input received at the April 30, 2007 public workshop and considered the Beam and KWG responses. Voting on a motion selected a developer was postponed until the March 14, 2007 work session. URA – May 14, 2007: Council selected Beam and KWG, with the following motion: Move to select Beam and KWG as the developers for the West Broadway project, and to direct the Agency Director to initiate actions related to agreements with the developers; public process that includes a citizen advisory committee with an independent urban planner/facilitator whose work shall be completed by the end of August and presented to the Agency in September; option agreements; financial tools; and a relocation/transition plan, all th consistent with the Agency’s May 9 discussion, with all proposed actions, other than option agreement renewals and extensions, brought back to the Agency for final authorization. This motion further directs the Agency Director to secure the services of a qualified urban planner/facilitator to oversee the public process for the West Broadway development site footprint, and to establish a West Broadway Development Advisory Committee to work with a qualified urban planner/facilitator, and the developers, to identify preferred design elements, mix of uses, public open spaces, options for parking, as well as a transition plan for existing businesses. The Agency and the Advisory Committee would also seek additional public input. The Advisory Committee shall be composed of 11 members, appointed by the Mayor after consulting with the City Council. In addition, the Agency Director shall secure the services of a qualified consultant to perform market analysis and economic feasibility studies. This research and analysis will inform the Agency and the Advisory Committee’s deliberations. Vote:Passed 6:2 (Bettman, Taylor opposed). June 27, 2007: ?First meeting of the West Broadway Advisory Committee (WBAC), attended by all 11 members appointed by the Mayor. July 2, 2007: ? HDR Town Planning, an urban planner/facilitator, was selected from the pool of four respondents to a Request for Qualifications. URA – May 29, 2007: URA work session to review a preliminary West Broadway Financing Plan. 2. Brownfields Economic Development Initiative (BEDI) IGR – May, 2005: Intergovernmental Relations Committee approved the Brownfields Grant application submission. June 2005: ?Application submitted. January 2006: ? City received award notice for a $2 million BEDI grant to assist redevelopment projects within the City's Downtown and Riverfront urban renewal districts. BEDI funds must be used in conjunction with, and for projects financed by, a HUD Section 108 guaranteed loan commitment. Memo – February 1, 2006: Staff memo regarding “Council Assignment Response: Recently- Awarded Brownfield Grant.” 3. HUD Section 108 Loan Guarantee Program (Section 108) CDBG-AC – February 1 & March 1, 2006: In accordance with application requirements, the City’s Community Development Block Grant Advisory Committee (CDBG-AC) held two public hearings regarding the Section 108 loan proposal. Opportunity for public comment was also made available during a 30-day written public comment period. On March 1, 2006, the CDBG-AC unanimously recommended submittal of the proposed $7,895,000 Section 108 application to HUD, with funding of future projects to be reviewed by the CDBG Advisory Committee and the City Council. CC – March 13, 2006: Council approved Resolution No. 4860 “A resolution authorizing submission of an application to United States Department of Housing and Urban Development for loan guarantee assistance and related matters.” Vote: Passed 7:0 (Absent: Taylor). July, 2006: ? HUD selected the City’s Section 108 application for funding to create a $9,895,000 loan pool, together with BEDI grant funds, for redevelopment projects within the Downtown and Riverfront urban renewal districts. Memo – December 28, 2006: Staff memo regarding “HUD Section 108 Loan Authorization” described the public hearing and ordinance process. CC – February 20, 2007: Council held a public hearing on the ordinance authorizing the use of Section 108 as a financing tool. CC – February 26, 2007: Council approved the ordinance authorizing the use of the Section 108 as a financing tool. The non-emergency ordinance established the City’s general ability to borrow for Section 108 projects with the stipulation that individual projects be approved by council resolution following a public hearing. Ordinance Number 20376, Council Bill Number 4938 “An ordinance authorizing Section 108 Revenue Bonds.” Vote: Passed 7:1 (Opposed: Taylor). Memo – April 9, 2007: Sue Cutsogeorge alerted council that the issue of a debt policy amendment th would be brought to council as a consent calendar item on May 14. CC – May 14, 2007: Council approved, on consent calendar, an amendment to the City’s debt policies regarding conduit financing. th Public Comment – June 20 to July 20, 2007: The 30-day public comment period started on June 20 with an advertisement in the Register Guard. CDBG-AC – July 10, 2007: The CDBG-AC met to review the individual project #1. They recommended “submitting the project application to HUD and moving forward.” Vote: Passed __:__ CC – July 16, 2007: Public hearing on the project to be funded from BEDI/HUD 108 funds. 4. Downtown Urban Renewal District July 1968: District originally created. The district plan has been amended four times: December 1968, November 1989, June 1998, and most recently in September 2004. Memo – April 12, 2007: Staff memo addressed the financial capacity of the Downtown Urban Renewal District and other tools to support downtown redevelopment. The necessity of a plan amendment was raised in connection with undertaking a large-scale redevelopment project. ERAC – April 19, 2007: ERAC viewed a presentation on the Downtown Urban Renewal District. ERAC unanimously recommended that the Downtown District Urban Renewal Plan be amended to increase the district’s financial capacity. CC & URA – April 25, 2007: Work session on the financial tools available to support downtown redevelopment. Staff alerted council to the necessity of amending the district plan to increase financial capacity. Public Workshop – April 30, 2007 : A public workshop was held to gather citizen input on the Beam and KWG concepts and the selection options being considered by the URA. The necessity of increasing the “maximum indebtedness” in the district was presented to the workshop attendees. th The results of the workshop were included in the council packet for the May 9 meeting. URA – May 29, 2007: The URA also began the process for making a substantial amendment to the Downtown Urban Renewal Plan. The Agency passed the following motion: Move to forward to the Planning Commission and overlapping taxing districts the proposed amendments to the Downtown Urban Renewal Plan, consistent with the draft plan and report included in Attachments D and E, except that the amendments shall include an increased maximum indebtedness of $40 million, for a total of $73 million and an extension of the termination date from June 30, 2024 to June 30, 2030. Vote: Passed 6:2 (Bettman, Taylor opposed). Taxing Districts Notice – June 11, 2007: The governing bodies of taxing districts impacted by the plan received notification. PC – June 18, 2007: Planning Commission met and reviewed the proposed amendments. They moved to: “Acknowledge receipt of the plan by the Planning Commission and given the relative completeness of the citizen involvement process, had no comments to offer.” Vote: Passed 6:0 Memo – June 21, 2007: Staff memo provided an update on the Plan Amendment process Public Notice – Week of June 25, 2007: A postcard notice was mailed to every property owner in th Eugene with information on accessing proposed plan amendments and the July 16 public hearing. LC – June 28, 2007: City staff met with the Lane County Finance and Audit Committee to review the proposed plan amendments. The County expressed interest in forwarding some suggested comments to the City Council for consideration when the plan amendments are considered. CC – July 16, 2007: Public hearing on the proposed urban renewal plan amendments.