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HomeMy WebLinkAboutItem B: LCC Downtwon Center Project-and att's A-D ERA UGENE ENEWAL GENCY AIS GENDA TEM UMMARY Work Session: Lane Community College Downtown Center Project Meeting Date: January 25, 2010 Agenda Item Number: B Department: Planning & Development Staff Contact: Denny Braud www.eugene-or.gov Contact Telephone Number: 541-682-5536 ISSUE STATEMENT th Lane Community College (LCC) has identified the 10 and Charnelton property owned by the Urban Renewal Agency (URA) as the preferred site for a new LCC downtown education facility. th The URA is being asked to select LCC to redevelop the 10 and Charnelton property as the site for its downtown facility. Terms for the transfer of the property to LCC would be brought back for URA Board consideration at a later date. BACKGROUND LCC has provided educational services from its Downtown Center for over 30 years. The Downtown Center, located at 1059 Willamette Street, no longer meets the needs of the college, and LCC intends to build and own a new, mixed-use building from which to offer educational and other services in downtown Eugene (see map Attachment A). The URA currently owns the th vacant half-block site bounded by Charnelton Street on the west, 10 Avenue on the south and Olive Street on the east (see map Attachment B). LCC has approached the URA regarding acquisition of the property for the new facility. The City Council has had ongoing discussions regarding downtown revitalization and local economic development actions that support jobs and redevelopment. LCC’s new downtown center has emerged as one of eight projects that could be pursued to foster a vibrant downtown and boost the local economy. Public involvement, conducted to date and focused on the eight th projects, has demonstrated strong support for the proposed LCC project on the 10 and Charnelton property. A detailed description of the project and impacts is included in Attachment C. LCC plans to utilize a three-phase process to complete the project. The first phase will result in a feasibility report addressing site conditions, code requirements, potential tenants, housing feasibility, conceptual design, and a preliminary cost estimate. LCC has hired Gerding/Edlen Development (GED) as the Project Manager. GED is in the process of completing the feasibility report, which is expected to be completed in early March 2010. The second phase will include design, budgeting, financing and legal agreements. The final phase will include construction and move-in. A draft timeline for the project is included in Attachment D. Because there are significant costs and commitments associated with the second phase of the project work, LCC will need to secure site control before moving into phase two. Site control will also be important for LCC to access potential financial resources that are targeted for Z:\CMO\2010 Council Agendas\M100125\S100125B-and att's A-D.doc “shovel ready” projects. Site control will occur when the URA enters into an agreement with LCC regarding the site. LCC is seeking to enter into an agreement with the URA by April 2010, regarding the transfer of ownership. RELATED CITY POLICIES The new LCC Downtown Center project addresses many goals for Eugene and downtown, including activity in the core, culture and education, employment and job training, and sustainability. This project is supported by the Downtown Plan; Downtown Code Amendments; West Broadway Advisory Committee Recommendations; Downtown Urban Renewal Plan; Central Area Transportation Study; Downtown Vision; City Council’s Downtown Collective Statements from August 2009; Downtown Policing Action Plan Team Short-Term Public Safety Strategy Recommendations 2004; Cultural Policy Review; Mayor’s 2004 Committee on Economic Development; Growth Management Policies; Sustainable Business Initiative; and JEO’s regional economic development principles. URA BOARD OPTIONS th 1.Select LCC to redevelop the 10 and Charnelton property as the location for its new downtown education facility, direct the Agency Director to enter into an exclusive negotiation agreement with LCC for a period of six months, negotiate a purchase and sale agreement, and return to the URA Board for final approval of the terms. 2.Take no action at this time. AGENCY DIRECTOR’S RECOMMENDATION th The Agency Director recommends that the URA Board select LCC to redevelop the 10 and Charnelton property as the location for its new downtown education facility. Further, the director recommends that the board direct the Agency Director to enter into an exclusive negotiation agreement with LCC for a period of six months, negotiate a purchase and sale agreement, and return to the URA Board for final approval of the terms. SUGGESTED MOTION th Move to select LCC to redevelop the 10 and Charnelton property as the location for its new downtown education facility. Direct the Agency Director to enter into an exclusive negotiation agreement with LCC for a period of six months, negotiate a purchase and sale agreement, and return to the URA Board for final approval of the terms. ATTACHMENTS A.1059 Willamette Street Map th B.10 and Charnelton Property Map C.LCC Project Description D.LCC Project Timeline Z:\CMO\2010 Council Agendas\M100125\S100125B-and att's A-D.doc FOR MORE INFORMATION Staff Contact: Denny Braud Telephone: 541-682-5536 Staff e-mail: denny.braud@ci.eugene.or.us Z:\CMO\2010 Council Agendas\M100125\S100125B-and att's A-D.doc ATTACHMENT A 1059 Willamette Street Map Z:\CMO\2010 Council Agendas\M100125\S100125B-and att's A-D.doc ATTACHMENT B th 10 & Charnelton Property Map Z:\CMO\2010 Council Agendas\M100125\S100125B-and att's A-D.doc ATTACHMENT C LCC Project Description GENERAL BACKGROUND Lane Community College (LCC) is in the planning stages for a new 80,000 square foot th Downtown Center. LCC has selected the 10 & Charnelton Development Site as the preferred location for the project. The new facility will house the programs currently located in LCC’s Downtown Center – continuing education, non-credit workforce development programs, English as a Second Language, and Adult Basic Education. In addition, Career and Technical Energy Programs, the Business Development Center and Employee Training, eDev, Senior Companion Program, and th Successful Aging Institute will relocate from LCC’s facility at 14 and Willamette. Career and Technical programs that support training for “green” jobs such as Energy Management and Renewable Resources will be relocated from the main campus to the downtown facility. It is intended that the multi-use facility will include space for lease by tenants and other community uses. For example, the Oregon Small Business Development Center Network, hosted by LCC and currently leasing space from the City of Eugene, will move into the building. The building is projected to have a 100% utilization rate for approximately 16 hours per day, 6 or 7 days a week. A feasibility study regarding the inclusion of student housing in the building is currently being conducted. The new building will be a “state of the art” educational building and a learning laboratory for the Energy Management students to use for experiments and monitoring. LCC is targeting 1 LEED Platinum certification and the Living Building Challenge as standards for the building. Both building programs include standards which will add to the overall cost of construction but will ultimately provide significant operating savings to LCC. To date, LCC has secured approximately $17 million for the project through a local bond measure and state matching funds. Although the total cost of the project is unknown at this time, the most recent estimate is $27 million. Because LCC’s operating funds (used to make debt service payments) are limited, the Downtown Center project is actively seeking alternative, non- debt funding sources. 1 The Living Building Challenge (LBC) was established by the Cascadia Region Green Building Council. LBC goes beyond LEED Platinum certification in terms of sustainability. To date the Living Building Challenge has not been met by any single building. Z:\CMO\2010 Council Agendas\M100125\S100125B-and att's A-D.doc JOBS/ECONOMIC DEVELOPMENT IMPACT ImpactDescriptionTotal Temporary Construction Jobs based on cost of construction project, business purchases 300-400 Related Jobsrelated to construction, and employee purchases Permanent JobsJobs relocated to downtown45+ Job Training ProgramsAt least 6 job training programs servicing 8,000 students Influx of LCC students and employees will attract new Indirect Economic & Other businesses, housing, and related services; exceptional building Impacts replaces the current hole and parking lot. 2 Temporary Construction Related Jobs: Expansion of LCC’s downtown presence will impact downtown’s economy as well as the regional economy. The benefits to downtown will be realized beginning with the construction phase of the building. With a projected total investment of $25-35 million, the project will result in as many as 272 to 380 temporary construction jobs estimated to last 18 months and approximately 26 indirect and induced jobs in areas such as production and transportation of construction materials. Permanent Jobs: The new Downtown Center investment will ensure that LCC’s existing, professional employment base will remain downtown. LCC plans to employ approximately 150 individuals at the new facility, about 45 of these employees will be new or relocated from other college sites. It is projected that a portion of the LCC building will be occupied by tenants. Specific tenants are unknown at this time; however, it can be assumed that one employee per 400 square feet would occupy additional leased space. Job Training Programs: The facility will include programs that lead to degrees and/or certificates in energy management, renewable energy, water conservation, building operations, sustainable building advising, and building auditing/inspecting. These programs represent some of the fastest growing career fields in today’s economy, and the new Downtown Center will be well positioned to prepare the workforce for the rapidly growing green jobs sector. Additionally, core career and technical training programs offered through the Downtown Center create career pathways, enhanced job skills, and retraining opportunities for community members. The Downtown Center will offer education and training in areas such as massage therapy, nutritional therapy, emergency medical technician, fitness education, AutoCAD, graphics, word processing, and English as a second language. In the 2008-2009 school year, LCC served 36,909 individuals. Approximately 3,500 of those students were served through the current LCC downtown center. LCC anticipates serving up to 8,000 students through the programs that will be housed in the new LCC downtown center. Based on the most current data available, in the 2007-2008 school year, LCC awarded 738 degrees and certificates. An average of 84% of LCC’s former career technical students who 2 Temporary construction jobs were calculated based on the estimated costs of construction. Staff applied the U.S. Department of Energy standard: for every $92,000 invested in a project one temporary construction job will be created. Staff provided the estimated construction costs to the Oregon Employment Department to calculate the number of temporary construction jobs that would be created by “new” money flowing into the local economy. Z:\CMO\2010 Council Agendas\M100125\S100125B-and att's A-D.doc graduated found employment in jobs related to their LCC training within nine months. LCC reports that its full-time enrollment grew by 15.7% last year and growth is expected to continue as displaced workers return to college to train for the new economy and as high school graduates seek a quality and affordable post-secondary education. LCC’s programs will have the ability to expand in the downtown building to meet this growing demand. Therefore, more people will benefit from these programs that advance skills, improve salaries and wages, and develop businesses. The living laboratory aspect of the building for the Energy Management Program will further the national reputation of LCC’s Energy Management program and attract even more students to this already desirable field. Of the LCC students graduating from the energy programs, 90% find employment within three months of graduation and earn an annual salary between $48,000 and $50,000. The cultivation of a significant labor pool of highly-trained energy management specialists is in Eugene’s best interest. The presence of these programs and the skilled graduates that the program produces will be assets in attracting new, green industries to Eugene and in advancing the sustainability of our existing businesses. Indirect Economic Impacts: The extensive hours of operation will create both daytime and evening activity at a key intersection of downtown. Economic opportunities for current and future downtown businesses will be created as students, employees, and visitors support restaurants, retail, services and cultural venues. Z:\CMO\2010 Council Agendas\M100125\S100125B-and att's A-D.doc ATTACHMENT D LCC Project Timeline Lane Community College Downtown Campus building January 15, 2010 PROJECT SCHEDULE PHASE 1. FEASIBILITY REPORT 2009 – Nov. Issue RFP for Project Manager Dec. Select Project Manager Begin 90 day Feasibility Report Issue RFP for Architect 2010 – Jan. Select Architect Mar. Presentation of Feasibility report to board of Education Apr. Enter into agreement with URA on land transaction PHASE 2. DESIGN AND CONSTRUCTION DOCUMENTS PHASE 2010 May Issue RFP for Project Manager & Architect Issue RFP for Commissioning Agent June Select Project Manager, Architect and Commissioning Agent Finalize financing plan Issue RFP for CMGC firm (if CMGC delivery method is adopted) July Select CMGC firm 2011 April Complete Design & Construction documents phase work PHASE 3. CONSTRUCTION AND MOVE-IN PHASE 2011 May Obtain building permit and start construction (if CMGC method is to be used) Put Contract documents out to bid (if Design-Bid-Build method is used) 2013 June Building reaches substantial completion July Install College purchased Furniture, Fixtures & Equipment Aug. Move people, supplies, etc. from existing Downtown Center to new building Sept. Start classes in new building Z:\CMO\2010 Council Agendas\M100125\S100125B-and att's A-D.doc