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HomeMy WebLinkAboutCC Minutes - 04/06/98 Work Session MINUTES Eugene City Council McNutt Room--City Hall April 6, 1998 5:30 p.m. COUNCILORS PRESENT: Pat Farr, Tim Laue, Bobby Lee, Scott Meisner, Nancy Nathanson, Laurie Swanson Gribskov, Betty Taylor, Ken Tollenaar. I. CALL TO ORDER The April 6, 1998, Eugene City Council meeting was called to order at 5:30 p.m.; His Honor Mayor James D. Torrey presiding. II. WORK SESSION: URBAN RENEWAL Lew Bowers, Planning and Development Department (PDD) provided the staff report, acknowledging the presence of Cathy Briner, Sue Cutsogeorge, and Bob Hibschman from PDD and Riverfront Commission Chair Dan Giustina to help answer the council's questions. He reminded the council of the policy questions before it: 1) terminate one or both urban districts; 2) continue them at the base level; and 3) continue them at the grandfather/enhanced level. Mr. Bowers noted that the ongoing discussion has linked a new library to the downtown urban renewal district but staff has no recommendation at this time. He asked the council to discuss this evening what outcome it desires for urban renewal and if preserving the district is the best financing tool for that option. Mr. Bowers indicated that staff had developed four possible outcomes for the Downtown District the council might consider: · Undertake no projects downtown--This involves defeasing the existing debt by collecting taxes for at least one more fiscal year before terminating the district. · Build a library only--Contruction of a library could be funded with General Obligation (GO) bonds or urban renewal bonds. If the latter were chosen, the resources of the renewal district would be all directed toward the construction of a new downtown library. · Build a library and undertake downtown projects--Resources of the district could be directed both at the construction of a new library and completing Renewal Plan projects. Minutes--Eugene City Council April 6, 1998 Page 1 5:30 p.m. · Undertake downtown projects only--Resources of the renewal district would be directed toward projects identified to address the Downtown Urban Renewal Plan's objectives, but not the library. Mr. Bowers reviewed funding options for each of the outcomes, noting the annual average net change in a tax bill over the life of the district. He mentioned that the scenarios reflect current State law but a vote on May 19 may change the requirement for a double majority on tax measures. Addressing a question from Mayor Torrey, Mr. Bowers said that under the terminate option, the $520,000 returned to the State would go to school districts other than our own. In response to a question from Mr. Meisner, staff indicated that the calculations for the terminate options included the tax increment. Addressing a question from Ms. Swanson Gribskov, City Attorney Glenn Klein said the council could amend the Urban Renewal Plan but one of the difficulties is that the district would terminate at a date certain so there would not be an ongoing revenue source. Also there is a debate statewide about whether urban renewal dollars can be used for ongoing operations as opposed to capital projects--something that has not been addressed by the courts. Ms. Taylor wondered if the library would then belong to the renewal district. Mr. Klein said ownership could be transferred for a nominal price. In response to a follow-up question from Ms. Taylor, Mr. Bowers said the net effect on the taxpayer for the terminate option was the same as the base option; however, the difference was that continuing with the base option eliminated the need to distribute funds to the other taxing districts. Mr. Bowers said it appears that urban renewal is a viable tool to finance a new library. And for each outcome, there seems to be one or more urban renewal actions that made the most sense: 1) for no projects, terminate; 2) for library only, grandfather option 1 with a separate local option levy; 3) for a library plus projects, either the base or the grandfather option 1 (but the latter is similar on the votes); and 4) for projects only, the base is the best option. Mr. Bowers added that when the council decides to build a library and what the optimal size and services will be, staff will explore various other funding tools such as the sale of the Sears and/or the current library site. He noted that the iimpacts on the taxpayer among the options would not change however. Addressing a question from Ms. Nathanson, Mr. Bowers said that any money returned to the County would be "unrestricted GF" money and the distribution to the other taxing districts is mandatory. Mr. Bowers produced a listing of potential downtown projects, which was generated by a group of stakeholders organized by the local chapter of the American Institute of Architects. He Minutes--Eugene City Council April 6, 1998 Page 2 5:30 p.m. explained that if the council decided to proceed with a grandfathered option, the State requires a list of the projects along with a "good faith" estimate of their costs. The list then becomes a substantial amendment to the Urban Renewal Plan submitted on May 27. The list of projects may amount to more than the resources as the law will not allow a project not on the list. Mr. Bowers asked the council to add or delete projects to the list so staff can cost them out. He suggested an advisory citizen committee for prioritizing the projects and making recommendations to the council. In response to a question from Ms. Swanson Gribskov, Mr. Klein said if the Atrium Building had been in the Urban Renewal Plan, the council could have used those funds to assist in purchasing the building. The plan could be amended but there may be special procedures to follow. Ms. Nathanson expressed interest in adding to the list an open space project mentioned in the West End Committee report. Mr. Klein indicated that new projects could not be funded with grandfathered options. Mr. Bowers reviewed the options for the Riverfront District: 1) discontinue City participation; 2) reduce City participation; and 3) continue maximum City participation. He noted that the Riverfront Commission has recommended continuing participation at the base option. Mayor Torrey indicated that the University's position is the same as the commission's. Mr. Bowers reviewed the time line, noting an April 13 public hearing. He explained that if the council decided on a grandfathered option, it would require a recommendation from the Planning Commission and comment from Lane County, with final council action by June 1. Addressing a question from Ms. Taylor, Mr. Bowers said it was possible to build a library with grandfather option 1 by having only that on the list of projects. Mr. Meisner wondered why there was not an option for a library only using the base option and local levy. Mr. Bowers said staff analyzed that scenario and it turned out to be less favorable to the taxpayer than those presented. Mr. Tollenaar ascertained that a November election would be exempt from the double majority rule. Mr. Meisner suggested eliminating the "projects only" option and said he agreed with the Riverfront Commission's recommendation. He added that he would not support any option without a public vote. Mr. Farr moved, seconded by Mr. Tollenaar, to delete Option D, Downtown Projects Only, from consideration. Ms. Nathanson said there were still some downtown projects she wanted accomplished. At minimum, she said, she could support a library plus projects. If it turned out that the two could Minutes--Eugene City Council April 6, 1998 Page 3 5:30 p.m. not be coupled, she said she would be interested in seeing what projects could be accomplished downtown with a "scaled back" fund. Mayor Torrey summarized her remarks by saying she wanted to hear public testimony on the option. Mr. Meisner was opposed to tying the library to urban renewal and said that downtown projects should compete with other demands on the general fund. Ms. Taylor agreed. Several councilors agreed the option should not be deleted before the public hearing. Mr. Farr expressed concern with split votes. Mr. Tollenaar said the district had accomplished its mission and isolating resources for the downtown was inappropriate and it may be responsible for the negative reaction to the fund. He also was opposed to limiting the public hearing. Mayor Torrey emphasized that the Library Committee would not be driven by the council's decision, noting that the library could very well be built on the existing site. The motion failed, 3:5; with councilors Laue, Meisner, and Taylor, voting in favor. Mr. Farr moved, seconded by Mr. Tollenaar, to delete Option G, continue maximum City participation in the Riverfront District. Councilors noted the motion was consistent with the Riverfront Commission's recommendation. The motion passed unanimously, 8:0. Mr. Tollenaar asked those opposed to tying the library to urban renewal to contact him and explain their opposition to further his understanding. Ms. Nathanson cautioned against promoting a library system given the cuts in other City services. Mr. Meisner reminded the council that the staff presentation was a sample package and reiterated his intention not to support any expansion of urban renewal without a public vote. Mr. Lee said that returning $520,000 to the State was a disincentive for terminating the district, but he would reserve judgement until after the public hearing. Ms. Swanson Gribskov expressed concern about "an opportunity lost" so she would remain open to the possibility of building a library with urban renewal funds and seek the Library Committee's input. Minutes--Eugene City Council April 6, 1998 Page 4 5:30 p.m. Ms. Taylor cautioned against using the Library to "save urban renewal." If there was public interest in building a library with urban renewal, she said it should be put to a vote, and if it failed, the district should be terminated. Mr. Farr said he believed urban renewal was an appropriate tool for building a library. Mayor Torrey reminded the council that one of its goals was the land use update and there may be some projects identified in the update that are appropriate uses of the fund. He encouraged the public to attend the public hearing and provide guidance. The meeting adjourned at 7:20 p.m. Minutes--Eugene City Council April 6, 1998 Page 5 5:30 p.m. Respectfully submitted, James R. Johnson City Manager Pro Tem (Recorded by Yolanda Paule) Minutes--Eugene City Council April 6, 1998 Page 6 5:30 p.m.