HomeMy WebLinkAboutItem C: URA Action on East Broadway Motions
EURA
UGENE RBAN ENEWAL GENCY
AIS
GENDA TEM UMMARY
Action: Downtown Update - East Broadway Development Projects
Meeting Date: March 15, 2006 Agenda Item Number: C
Department: Planning and Development Staff Contact: Nan Laurence
www.eugene-or.gov Contact Telephone Number: 682-5340
ISSUE STATEMENT
The Urban Renewal Agency (URA) is asked to approve an intergovernmental agreement (IGA)
between the City and the Urban Renewal Agency. This action is a necessary component of the
financing strategy for the public parking garage, as part of the East Broadway Development
Projects.
BACKGROUND
Please refer to the Eugene City Council Agenda Item Summaries for February 8, February 13,
February 22, March 13 and March 15 for background information on this item.
At the February 22 City Council meeting, a question was raised about the reimbursement
component of the proposed intergovernmental agreement. Under the IGA, the URA will send
one-half of any excess of current year revenues over current year expenses back to the City to
reimburse the City’s contribution from the Facility Reserve. The question raised was whether
the URA had the ability to increase spending in the budget each year to ensure that there was no
excess available to be sent back to the City. The answer to the question is yes, the URA has the
ability to increase spending in the budget. It would be the City Council (when they act as the
URA board), however, that would approve any budget changes and choose whether or not to
ensure excess funds are available to repay the City’s contribution from the Facility Reserve.
That decision cannot be made unilaterally by staff or by the Eugene Redevelopment Advisory
Committee. It is only a decision of the City Council when they act as the URA board.
RELATED CITY POLICIES
Relevant Downtown Plan policies include the following:
Downtown development shall support the urban qualities of density, vitality, livability and
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diversity to create a downtown, urban environment.
Actively pursue public/private development opportunities to achieve the vision for an active,
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vital, growing downtown.
Facilitate dense development in the Courthouse area and other sites between the core of
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downtown and the river.
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The Downtown Plan policies emphasize downtown Eugene as a strong regional center, and a
diverse, dense, economically strong urban center. The proposed East Broadway Development
Projects address these policies as a higher density, pedestrian-oriented, public/private
redevelopment project in the area of the Wayne Morse Federal Courthouse.
The following project is listed in the Downtown Plan as an example of a possible action to
address the Implementation Strategies in the plan:
Construct a new parking garage to support the east side of downtown and the new
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Courthouse district.
Relevant Growth Management Policies include the following:
Policy 1 Support the existing Eugene Urban Growth Boundary by taking actions to
increase density and use existing vacant land and under-used land within the
boundary more efficiently.
Policy 2 Encourage in-fill, mixed-use, redevelopment, and higher density development.
Policy 3 Encourage a mix of businesses and residential uses downtown using incentives
and zoning.
The Whole Foods Development project is consistent with the Goals and Objectives of the
Riverfront Urban Renewal District Plan, in particular the following:
4.To stimulate development activity and amenities near the new federal courthouse.
In Section 600 A.6. of the Riverfront Urban Renewal Plan, the acquisition and construction of
public parking is an authorized project activity. Therefore, the City’s participation in the East
Broadway Development Projects through construction of a parking garage is authorized for
spending of Riverfront Urban Renewal funds.
URBAN RENEWAL AGENCY OPTIONS
The Urban Renewal Agency can choose to take action in support of the East Broadway
Development Projects by approving the suggested motion below, or decline to support the
projects as proposed.
AGENCY DIRECTOR’S RECOMMENDATION
The Agency Director recommends that the Urban Renewal Agency take action in support of the
East Broadway Development Projects by approving the motion suggested below.
SUGGESTED MOTION
Move to direct the Agency Director to enter into an intergovernmental agreement between the
City of Eugene and the Urban Renewal Agency in substantial conformity with the outline of
terms described in Attachment A: Intergovernmental Agreement.
ATTACHMENTS:
A. Intergovernmental Agreement
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FOR MORE INFORMATION
Staff Contact: Nan Laurence
Telephone: 682-5340
Staff E-Mail: nan.laurence@ci.eugene.or.us
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ATTACHMENT A
Intergovernmental Agreement
The following is a general outline of terms for an Intergovernmental Agreement between the City of
Eugene (the City) and the Urban Renewal Agency (URA) for participation in the East Broadway
Development Projects. The terms and conditions contained herein are intended to be for discussion
purposes and do not represent the final terms for this Intergovernmental Agreement. Based on
Council and URA action, the final terms will be in substantial conformity with this outline.
Purchase of Parking Garage
City is purchasing a parking garage from a developer that will be constructed mainly on City-
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owned property.
Because the project is located in the Riverfront Urban Renewal District, the URA/Riverfront
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District is responsible for paying for as much of the project cost as possible.
Payment for this project will be made from:
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URA/Riverfront District: all unobligated funds available in FY06 and FY07, funds that
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were programmed for purchase of the riparian area on the EWEB site, and proceeds
from the sale of urban renewal revenue bonds.
City: stormwater funds for rehabilitation the storm line, Library Debt Fund reserves to
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fund new debt service reserve and costs of debt issuance, and the Facility Reserve.
If the City Council authorizes an alternative financing strategy, the City would enter into a HUD
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Section 108 Loan, in connection with BEDI grant funds for this project. In this event, the
URA/Riverfront District would not issue urban renewal revenue bonds. The URA/Riverfront
District would instead be responsible for making annual payments to the City equal to the debt
service on the HUD Section 108 Loan.
Reimbursement to City for Funds Advanced for Garage Purchase
The City contribution in the form of a Facility Reserve payment or BEDI grant funds shall be
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reimbursed by the URA/Riverfront to the extent possible, under the following terms:
No interest will be due to the City from the URA/Riverfront District for the City’s up-
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front cash contribution to this project.
Each year after the audit is completed, the URA/Riverfront District will pay the City a
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minimum of 1/2 of any excess of current year revenues over current year expenses in the
just completed fiscal year for the combined URA/Riverfront District funds.
Prior to the URA/Riverfront entering into any additional loans or debt, the
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URA/Riverfront District will determine a fixed reimbursement schedule to ensure that
the City will be fully reimbursed for its Facility Reserve or BEDI grant contribution to
the garage project, and will include that fixed reimbursement schedule into the cash
flows to determine future borrowing capacity.
Other Terms
If any urban renewal bond documents conflict with the terms of this IGA, then the terms of the
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bond documents will take priority over the IGA terms.
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