HomeMy WebLinkAboutItem A: Expenditure Review Panel FY11 Report
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Work Session: Expenditure Review Panel FY11 Report
Meeting Date: April 25, 2012 Agenda Item: A
Department: PDD/Development Staff Contact: Amanda Nobel
www.eugene-or.gov Contact Telephone Number: 541-682-5535
ISSUE STATEMENT
This work session is an opportunity to review expenditures of tax increment for the first year (FY11) of
the Downtown Urban Renewal Plan since its 2010 amendment. The Expenditure Review Panel (ERP)
completed its review and compiled an annual report for the Agency Director.
BACKGROUND
Following considerable study and discussion, which included setting a goal and strategies to foster a
vibrant downtown, the council approved Ordinance 20459 on May 24, 2010, to amend the Downtown
Urban Renewal Plan. The amendment was targeted at specific projects that would generate economic
development momentum downtown. The amendment:
1)increased the spending limit by $13.6 million to cover three specific projects;
2)established an oversight committee to review tax increment spending on an annual basis (the
ERP); and
3)set the Downtown District to terminate after debt issued to pay for the projects is repaid or
defeased.
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The three downtown projects are: 1) assistance to Lane Community College for the project on the 10
and Charnelton Development Site; 2) additional downtown urban renewal assistance in funding the
Broadway Place Garages so that the garages remain available and in good condition to support other
development and redevelopment in downtown (and, at the same time, to enable improvements to public
safety downtown); and 3) infrastructure improvements to the Park Blocks to provide better opportunities
for the Farmers’ Market.
Specifically, the ERP is included in Section 900 of the 2010 amended Downtown Urban Renewal Plan,
which calls for the City Manager acting as the Agency Director to “convene not less than once each year
a committee of such persons to prepare a report to the Director on a) the activities of the Agency for the
previous fiscal year and b) whether the Agency’s expenditure of tax increment dollars was limited to the
projects authorized by the Plan and the associated administrative costs authorized by the Plan.”
In January 2012, the Mayor nominated and council approved five community members for the ERP:
Chris Looney, Josh Burstein, Tom Kamis, David Mandelblatt, and Tamara Irminger-Underwood. The
panel met three times over a three-month period and toured the projects.
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On March 12, 2012, the ERP unanimously approved its first-year annual report for the FY11 period
(July 1, 2009 to June 30, 2010) and concluded “that the downtown urban renewal tax increment funds
were used for the authorized purposes and in compliance with the limitations and restrictions outlined in
the Plan.” (See Attachment A for the ERP Memo to the Agency Director and Attachment B for the
FY11 Report.) The panel also agreed that having the Urban Renewal Agency Board approve specific
projects to receive funds and providing the oversight of a community-based committee was an effective
approach with positive outcomes. The ERP is scheduled to reconvene in January 2013, upon council’s
approval of the FY12 Annual Financial Report for the Urban Renewal Agency.
RELATED CITY POLICIES
Downtown revitalization and the projects referenced in this material are supported by the Downtown
Plan, council’s 2009 Vision & Goals, and a number of plans and reports related to downtown.
COUNCIL OPTIONS
The work session is informational; no action is requested.
CITY MANAGER’S RECOMMENDATION
The work session is informational; no action is requested.
SUGGESTED MOTION
The work session is informational; no action is requested.
ATTACHMENTS
A.ERP Memo to the Agency Director
B.FY11 Expenditure Review Panel Report for the Agency Director
FOR MORE INFORMATION
Staff Contact: Amanda Nobel Flannery
Telephone: 541-682-5535
Staff E-Mail: amanda.nobelflannery@ci.eugene.or.us
S:\CMO\2012 Council Agendas\M120425\S120425A.doc
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FY 11 Expenditure Review Panel Report for the Agency Director
Background information and implementation update for the Downtown Urban Renewal Plan
Prepared by:
Community Development Division
Planning & Development Department
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99 West 10 Avenue
Eugene, OR 97401
March 2012
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INTRODUCTION
Staff prepared this report at the request of the Expenditure Review Panel at its January 25, 2012 meeting. The purpose
is to give background information on the projects approved by the Urban Renewal Agency Board in the 2010 Plan
Amendment and to summarize the expenditures of the Downtown Urban Renewal District between July 1, 2010 and
June 30, 2011 (FY11).
Key Terms
Agency Urban Renewal Agency, the Board of which is comprised of the City Council.
ERP Expenditure Review Panel for the Downtown Urban Renewal District.
Maximum Indebtedness The amount of tax increment dollars the Agency can spend over the life of the Plan.
Although this sounds like a debt limit, it is really a spending limit required by Oregon Revised Statutes. The
f which was spent on the library) and increased by
$13.6 million in 2010.
Plan Downtown Urban Renewal Plan
Plan Area The property included in the Downtown Urban Renewal District. The Plan Area description is in the
Plan, section 300 and the map is Exhibit A to the Plan.
Plan Estimate Table 6 from the Report created in February 2010 as part of the 2010 Plan Amendment process. It
shows what was estimated to be spent from FY10 through FY18 (July 1, 2009 to June 20, 2018).
Report Downtown Urban Renewal District Report
Tax Increment The source of funds. When an urban renewal district is first created, the assessed value within the
efforts will lead to increases in the
jurisdictions (schools, general governments, bonds) continue to receive property taxes on the frozen base while the
method of raising revenue in an urban renewal district.
ERP Mission
The ERP was added in the 2010 Plan Amendment to annually assess whether funds (tax increment) were spent on
projects authorized by the Plan and to prepare an annual report for the City Manager.
Budget Funds
The Downtown District operates three funds: the URA Downtown General Fund, the URA Downtown Debt Service Fund,
and the URA Downtown Capital Projects Fund.
URA-Downtown Debt Service Fund: This fund receives all of the Downtown District tax increment revenues and
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uses those resources to:
Provide funding for the principal and interest payments on the LCC and Broadway Place Garages debt
Provide funding (through interfund transfers) to the Downtown General Fund for district management
costs and other operating expenses
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Provide funding (through interfund transfers) to the Downtown Capital Projects Fund for specific capital
improvements
URA Downtown Capital Projects Fund: This fund accounts for capital projects in the Downtown District. The
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Downtown Debt Service Fund transfers resources to pay for specific, approved capital expenditures charged to
this fund.
URA-Downtown General Fund: This fund receives revenue from property sales and leases, interest on cash
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balances and interfund transfers from the Downtown Debt Service Fund. These revenues are used to:
Rent costs
Pay other operating costs, including property management expenses
This fund also accounts for non-tax increment revenue and expense associated with the Downtown
Revitalization Loan Program (DRLP), which provides loans to property owners and businesses in the Plan Area.
Other Urban Renewal Oversight
Oversight starts with the City Council, who determines whether to create a district.
The Council, acting as the URA Board, oversees implementation of the urban renewal plan, and reviews and
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approves projects and budgets.
Urban Renewal A
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recommendation to the Council each year.
The Eugene Redevelopment Advisory Committee was created in 2003 to provide community member input on
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the proposed plan amendments undertaken in 2004. The committee provides advice to the staff in preparing
urban renewal projects and plans.
The Loan Advisory Committee reviews all of the DRLP loan applications.
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For the federal funds used for the Beam project, HUD has very specific requirements to be followed, and they
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have auditors that look over the HUD funds.
Bond Counsel/investors review Urban Renewal Agency legal and financial records to ensure that any debt
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issuance by the Agency is legal, valid and binding.
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activities over several months to review the financial statements prepared by City financial reporting staff. The
result of the audit is that the auditor provides an opinion on the financial statements. The opinion states
whether the financial report is presented fairly, in all material respects, in conformance with generally accepted
accounting principles.
URA
Board
External
Budget
Auditor
Com.
Dept.
Downtown
Advisory
Investors
Urban
Com.
Renewal
(ERAC)
Federal Loan
Advisory
(HUD) Com.
ERP
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Expenditure Review Methodology
Staff compiled information for this report to assist the ERP in reviewing tax increment spending during FY11. The
information is organized by project and includes background language from the 2010 Plan and Report, as well as
excerpts from the Annual Financial Report and the projected resources and requirements developed during the plan
amendment process (Plan Estimate). Where actual expenditures differ significantly from the planned expenditures, an
explanation is noted.
information is provided for loans disbursed in FY11 to assist the ERP in understanding the full range of Agency work.
. 5
Broadway Place Garages & Public Safety Improvements. pg. 10
Lane Community College New . pg. 17
pg. 23
pg. 29
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The Agency Board approved expenditure of funds
on infrastructure improvements to the Park Blocks
in order to make that location more attractive and
Specifically, the
Plan calls for spending up to $500,000. Uses of the
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funds could be street improvements along 8 such
as narrowing the street or curb extensions;
electrical upgrades, landscape changes; right-of-
way improvements for compatibility with
neighboring businesses; bike parking; and improvements to the East Park Block. (See Attachment 1 for
excerpts from the Plan and Report related to this project.)
Expenditure Summary
FY11 FY11 Authorized Amount
Budget Expenditures by Plan Remaining
$500,000 $0 $500,000 $500,000
Saturday Market, and interested community members to discuss and determine specific improvements that
t Improvement Committee met from October 2010 to
March 2011. The group discontinued meeting to allow time for larger issues to be addressed, including the
possibility of different downtown locations and the ultimate goal of a permanent home for the market.
(Additional expenditure detail is in Attachment 2 The Plan Estimate and excerpts from the Annual Financial
Report fiscal year ended June 30, 2011.)
Funding Sources
staff effort was
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Attachment 1
Excerpts from Plan & Report
Downtown Urban Renewal Plan (June 25, 2010)
Goal 1.a. Improve the function, condition, and appearance of the Plan Area through an improved site for the
. (This project also contributes to Goals 2-4.)
Objective 1. into the Plan
Area;
Section 600 A. PUBLIC PARKS, PUBLIC PLAZAS, REST ROOMS, AND OPEN SPACES: Park Blocks Improvements
Former Section 600 A.5 of the Plan authorized the Agency to participate in funding
the design, acquisition, construction or rehabilitation of public spaces, or parks or public facilities within the
urban renewal area, including but not limited to walkways and plazas and accessibility
improvements. Beginning with the effective date of the 2010 Amendment, the Agency will not use tax
increment funds to initiate any public parks, public plazas, rest rooms or open spaces except the Park Blocks
improvements for
The Agency may spend up to $500,000 of tax increment funds, plus associated interest, premium and other
costs, on infrastructure improvements to the Park Blocks in order to make that location more attractive and
Downtown Urban Renewal District Report (June 25, 2010)
Chapter 5 item 1). The Lane multiple times per week during the spring,
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summer, and fall on a portion of the Park Blocks on 8 Avenue. Although the Agency has completed several
access to electricity and to level and paved surfaces. Infrastructure improvements to the Park Blocks and
expansion of available space will support a cornerstone of downtown activity and one of the most significant
public event venues in the city. The Park Blocks are the historic center and most identifiable public space in
offerings to maintain financial viability and potentially operate year-round.The Agency will improve the Park
Blocks in order to make that
Chapter 6. The Agency will spend up to $500,000 on infrastructure improvements to the Park Blocks in order
to make that location m The improvements will start in
FY2010/2011.
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Attachment 2
Additional Expenditure Detail
Plan Estimate
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Annual Financial Report Excerpts
Urban Renewal Agency of the City of Eugene, Oregon
Where tax increment goes when 1 collected
Debt Service Fund
st
-
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
Actual
Budget GAAP
Budget Basis Adjustment basis
Revenues
Taxes 1,920,000 1,859,593 0 1,859,593
Miscellaneous 25,000 46,409 (5,094) 41,315
Total revenues 1,945,000 1,906,002 (5,094) 1,900,908
Expenditures
Debt service 150,000 27,851 0 27,851
Intergovernmental 13,261,000 13,252,084 0 13,252,084
Total expenditures 13,411,000 13,279,935 0 13,279,935
Excess (deficiency) of revenues over expenditures (11,466,000) (11,373,933) (5,094) (11,379,027)
Other financing sources (uses)
Proceeds of debt issuance 7,900,000 7,900,000 0 7,900,000
Transfers out (1,030,000) (746,411) 0 (746,411)
Total other financing sources (uses) 6,870,000 7,153,589 0 7,153,589
Net change in fund balance (4,596,000) (4,220,344) (5,094) (4,225,438)
Fund balance, July 1, 2010 4,599,060 4,599,060 12,630 4,611,690
Fund balance, June 30, 2011 3,060 378,716 7,536 386,252
$500,000 (to URA-Capital Projects Fund)
Project Delivery Admin: $246,411 (to URA-General Fund)
$746,411
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Urban Renewal Agency of the City of Eugene, Oregon
Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
Actual
Budget GAAP
Budget Basis Adjustment basis
Revenues
Miscellaneous 1,000 2,249 17 2,266
Total revenues 1,000 2,249 17 2,266
Expenditures
Capital outlay 734,593 0 0 0
Total expenditures 734,593 0 0 0
Excess (deficiency) of revenues over expenditures (733,593) 2,249 17 2,266
Other financing sources (uses)
Transfers in 500,000 500,000 0 500,000
Total other financing sources (uses) 500,000 500,000 0 500,000
Net change in fund balance (233,593) 502,249 17 502,266
Fund balance, July 1, 2010 237,918 237,918 347 238,265
Fund balance, June 30, 2011 4,325 740,167 364 740,531
$500,000
$234,593
$734,593
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Broadway Place Garages & Public Safety Improvements
The Agency Board approved
expenditure of funds to pay the
principal of City obligations
issued to finance the Broadway
Place Garages, or of Agency
obligations that are issued to
refinance the City obligations.
The Agency investment is in
exchange for the City a)
continuing to make the garages available for businesses and residents downtown and b) enhancing public
safety in the Plan Area. Specifically, the Plan calls for spending no more than $4.9 million of tax increment
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funds to pay the principal.
starting in FY11.) The Broadway Place mixed-use project includes 170 apartment units, ground floor
commercial space, and 740 structured parking spaces. (See Attachment 1 for excerpts from the Plan and
Report related to this project. Information about public safety is in Attachment 2.)
Expenditure Summary
FY11 FY11 Authorized Amount
Budget Expenditures by Plan Remaining
$4,810,000 principal
$5,261,000 $ 442,084 interest $4.9 million in principal $90,000
$5,252,084
The Agency made the principal and interest payments for FY11 and then refinanced the debt to attain a lower
interest rate. In May 2011, the Agency issued $4.4 million in private placement bonds for the refinance.
(Additional detail is in Attachment 3 The Plan Estimate and the excerpt from the Annual Financial Report
fiscal year ended June 30, 2011.)
Funding Sources
Urban renewal was the only source of funds for the FY11 expenditures. In years prior, the Agency and City
contributed to the project:
The Agency assembled the two half-blocks that for the project;
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The Agency contributed $2.5 million to the parking structure construction costs; and
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The City sold development rights for the housing to be constructed on top of the parking structures.
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Interest expense does not count toward the spending limit (maximum indebtedness); no specific amount was authorized in the
Plan.
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Attachment 1
Excerpts from Plan & Report
BP Garages & Safety Improvements
Downtown Urban Renewal Plan (June 25, 2010)
Goal 1. b & c. Improve the function, condition, and appearance of the Plan Area through b) funding of critical
parking assets and c) improved safety for visitors to locations and business within the Plan Area. (This project
also contributes to Goals 2-4.)
Objective 2. The Broadway Place Garages remain available and in good condition to support other
development and redevelopment in downtown and, at the same time, to enable improvements to public
safety downtown.
Section 600 B. PUBLIC PARKING AND PUBLIC TRANSPORTATION FACILITIES: Broadway Place Garages & Public
Safety Improvements Former Section 600 A.6 of the Plan authorized the Agency to participate in funding the
acquisition and construction and enhancement of public parking and public transportation facilities within the
renewal area. Prior to the 2010 Amendment, the Agency provided approximately $2.5 million of assistance
for the construction of the Broadway Place Garages. After the effective date of the 2010 Amendment, the
Agency will not use tax increment funds to initiate any public parking or transportation facilities funding
except the funding for the Broadway Place Garages described in the next paragraph.
After the 2010 Amendment, the Agency may spend up to $4.9 million of tax increment funds to pay the
principal of City obligations issued to finance those garages, or of Agency obligations that are issued to
refinance the City obligations, plus associated interest, premium and other costs, but only if the City agrees to
a) continue to make the garages available for businesses and residents downtown and b) enhance public
safety in the Plan Area.
The proposed funding for the Broadway Place Garages serve and benefit the Plan Area because: (1) The
Broadway Place Garages provide an essential public parking facility that directly serves the business,
customer, and resident parking needs in the Plan Area, thereby supporting continued redevelopment in the
Plan Area; (2) The Plan Area is a parking exempt zone, and the Broadway Place Garages relieve property
owners in the Plan Area from the requirement to provide imbedded parking in new and redeveloped
properties; and (3) The additional funding will allow the Broadway Place Garages to continue to provide these
services to the Plan Area.
Downtown Urban Renewal District Report (June 25, 2010)
Chapter 5 item 2). The Plan Area is parking exempt, which means that property owners are not required to
provide parking. Yet parking availability is critical to the economic success of downtown. As such, the Agency
has participated in several projects to provide structured parking opportunities within the Plan Area. One
such project was the Broadway Place Garages. Continued provision of Broadway Place parking will support
new downtown campus project and other redevelopment along West Broadway, such as Lord Leebri
property. Given City budgetary issues, continued operation and stability of the Broadway Place Garages will
be enhanced by the Agency making payments on the debt for the garages. It would also make it possible for
the parking fund to provide financial support for increased safety services.
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Background: The Agency assembled the two half-blocks that were used to develop the Broadway Place mixed-
use project. Agency funds in the amount of $2.5 million were contributed to the parking structure
construction costs. The City sold development rights for housing to be constructed on top of the parking
structures. The Broadway Place mixed-use project includes 170 apartment units, ground floor commercial
space, and 740 structured parking spaces. It is a major anchor for the west-end of downtown and a popular
residential destination with very low vacancy rates. Availability of parking was a contributing factor to
Enterprise Rent-A-Car locating downtown and employing 300 people.
Chapter 6. The Agency will support the Broadway Place Garages by making the annual debt payments (both
principal and interest), which will secure the financial stability of the garages, enhance safety services, and
relieve the struggling Parking Fund within the City of Eugene. The support will take place starting in
FY2010/2011.
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Attachment 2
Public Safety Improvements
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Attachment 3
Additional Expenditure Detail BP Garages
Plan Estimate
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Annual Financial Report Excerpt
Urban Renewal Agency of the City of Eugene, Oregon
Where tax increment goes when 1 collected
Debt Service Fund
st
-
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
Actual
Budget GAAP
Budget Basis Adjustment basis
Revenues
Taxes 1,920,000 1,859,593 0 1,859,593
Miscellaneous 25,000 46,409 (5,094) 41,315
Total revenues 1,945,000 1,906,002 (5,094) 1,900,908
Expenditures
(Cost to Issue Debt)
Debt service
150,000 27,851 0 27,851
Intergovernmental 13,261,000 13,252,084 0 13,252,084
Total expenditures 13,411,000 13,279,935 0 13,279,935
Excess (deficiency) of revenues over expenditures (11,466,000) (11,373,933) (5,094) (11,379,027)
Other financing sources (uses)
Proceeds of debt issuance 7,900,000 7,900,000 0 7,900,000
Transfers out (1,030,000) (746,411) 0 (746,411)
Total other financing sources (uses) 6,870,000 7,153,589 0 7,153,589
Net change in fund balance (4,596,000) (4,220,344) (5,094) (4,225,438)
Fund balance, July 1, 2010 4,599,060 4,599,060 12,630 4,611,690
Fund balance, June 30, 2011 3,060 378,716 7,536 386,252
Spending: Getting Cash Via Bonds:
$ 740,507 one $4.4M for BP Garages refinance
$4,511,577 BP Garages refinance $3.5M for LCC
$8,000,000 LCC $7.9M
$13,252,084
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Lane Community College New Downtown Campus
Before picture
After picture
The Agency Board approved expenditure of funds to support Lane Community
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Downtown Campus at 10 & Charnelton, across from the library. Specifically, the Plan calls for a grant of $8
million to be funded from cash on hand (estimated at $3.75 million) plus issuance of debt (estimated at $4.25
million). The new Downtown Campus will include a 90,000 square foot, $35 million education building and a
$20 million, 75,000 square foot student housing facility. The student housing will include five floors to
accommodate 256 students. Both buildings will be LEED certified. As of February 2012, the construction is
45% complete, on-time, and on-budget. Students will move in during September 2012, while the education
building is being finished. The first classes in the new building are expected to begin in January 2013. (See
Attachment 1 for excerpts from the Plan and Report related to this project.)
Expenditure Summary
FY 11 FY11 Authorized Amount
Budget Expenditures by Plan Remaining
$ 8 million $8 million $8 million $0
In May 2011, the Agency issued $3.5 million in private placement bonds to be combined with cash-on-hand.
(The debt amount was less than expected because the bank did not require a debt service reserve account,
and the Agency was able to use the funds set aside for that reserve to lower the borrowing amount.) The
Agency signed an intergovernmental agreement with LCC and disbursed the $8 million urban renewal grant.
(Additional detail is in Attachment 2 The Plan Estimate and the excerpt from the Annual Financial Report
fiscal year ended June 30, 2011 and)
Funding Sources
In addition to the grant, the Agency and the City participated in this project in two other ways:
The Agency donated the land valued at $1.6 million; and
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The City approved the transfer of a Recovery Zone Bond to LCC in order to help the college access a
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$7,839,000 bond for the housing portion of the project.
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The estimated total project cost is $55 million:
LCC General Obligation Bond $ 9,000,000
State of Oregon Match Bond $ 8,000,000
Eugene Urban Renewal Agency Grant $ 8,000,000
Eugene Urban Renewal Agency Land Contribution $ 1,600,000
Campus-Based Enterprise Fund $ 2,500,000
LCC Qualified Energy Conservation Bonds $ 1,500,000
College Facility Reserve $ 851,000
Congressional Appropriation - Energy Management $ 550,000
Sustainability Incentives $ 200,000
EWEB Greenpower Customer Grant $ 100,000
New Market Tax Credits (net of fees) and/or Fundraising $ 3,500,000
LCC Bond Sale Investment in Student Housing * $19,355,000
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Attachment 1
Excerpts from Plan & Report
LCC
Downtown Urban Renewal Plan (June 25, 2010)
Goal 1.d. Improve the function, condition, and appearance of the Plan Area through redevelopment of the
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excavated vacant lot at the 10 and Charnelton Site. (This project also contributes to Goals 2-4.)
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Objective 3. LCC is able to redevelop the 10 and Charnelton Site with a campus that will bring thousands of
people into the Plan Area.
Section 600 C. The Agency may spend up to $8 million of tax increment funds, plus associated interest,
premium and other costs, to assist LCC in the development of a new downtown building for its programs at
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the 10 and Charnelton Site. Upon agreement by LCC and the City, the project may include a public plaza or
open space area at the site and potentially a downtown public safety station. The Agency already has
approved the sale of this site to LCC.
LCC is proposing to build a new 80,000 square foot, mixed-use, state-of-the-art downtown education
facility. The education building is targeted for LEED Platinum certification. LCC is also considering the
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construction of approximately 200 beds of student housing on the 10 & Charnelton Site. The new, highly-
sustainab
Management program and to become a model for sustainable development. The new education facility will
l be a major activity generator for
downtown. The Agency may provide assistance with project related costs for the new education facility and
housing, including construction hard and soft costs, site improvements, infrastructure, open space, green
building features, art, and other project related cost.
The LCC New Downtown Campus will serve and benefit the Plan Area because: (1) Existing education
programs and new programs to be included in the new building will draw thousands of students and visitors to
the Plan Area each year; (2) New housing residents will generate more activity in the Plan Area; and (3) This
landmark building, coupled with the activity it generates, will become a major anchor that will support
adjacent retail and services in the Plan Area, enhance the perception of safety by introducing high volumes of
new pedestrian traffic in the Plan Area, and attract new investments in the Plan Area.
Downtown Urban Renewal District Report (June 25, 2010)
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Chapter 5. Item 3). The Agency owns the 10 and Charnelton Site bounded by Charnelton Street on the west,
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10 Avenue on the south, and Olive Street on the east. The site is significantly underutilized in its present
configuration a quarter block of surface parking and a quarter block remnant from demolition of the former
Sears department store.
LCC approached the Agency regarding acquisition of the property for a new downtown facility. On March 10,
2010, the Agency Board authorized the Agency Director to enter into an agreement with LCC to sell the
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property at no cost (or $1.00). LCC has provided educational services from downtown for over 30 years at
1059 Willamette Street. The current facility 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.
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. In addition to Energy
Management, Business Development, continuing education, and a variety of other classes, the multi-use
facility will include space for tenants and other community uses, possibly a public safety station. Student
housing could also be incorporated as part of the redevelopment plan.
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The Downtown Public Library, immediately across 10 Avenue, is a community asset that will benefit greatly
from development on the Agency owned site, especially the development proposed by LCC. The Agency
invested significantly in the Library. The Downtown Eugene Public Library project was built and equipped for
just over $36 million. About half of that amount came from City debt obligations that were issued in 2000
through a partnership with the Agency. The payments on the debt of about $2.5 million per year came from
the Agency. Beginning in 1993, the Agency purchased the land on which the library was built for $875,000.
The City borrowed $18.5 million which was to be repaid from tax increment dollars from the Agency. The
Agency also contributed additional cash to the project, with a total of about $25 million of the $36 million
project coming from Agency, representing nearly 70 percent of the capital cost for the new Library. The
remaining 30 percent came from a combination of sources, including $5 million raised by the Eugene Public
Library Foundat
$1.9 million.
Chapter 6. The Agency will consider the terms for an agreement between the Agency and LCC. The specific
activities to be undertaken will be defined by the Agency, set out in the agreement with LCC, and may include
integration of a public safety station and/or open space within the development project. LCC currently has
$17.5 million in other funds to contribute to the project. LCC is undergoing a feasibility analysis that will
provide a detailed cost estimate for the project. The total project cost is expected to significantly exceed the
$17.5 million that has been secured to date. Construction is anticipated to start in early 2011, for completion
no later than 2013.
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Attachment 2
Additional Expenditure Detail LCC
Plan Estimate
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Annual Financial Report Excerpt
Urban Renewal Agency of the City of Eugene, Oregon
Where tax increment goes when 1 collected
Debt Service Fund
st
-
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
Actual
Budget GAAP
Budget Basis Adjustment basis
Revenues
Taxes 1,920,000 1,859,593 0 1,859,593
Miscellaneous 25,000 46,409 (5,094) 41,315
Total revenues 1,945,000 1,906,002 (5,094) 1,900,908
Expenditures
Debt issuance costs)
Debt service (
150,000 27,851 0 27,851
Intergovernmental 13,261,000 13,252,084 0 13,252,084
Total expenditures 13,411,000 13,279,935 0 13,279,935
Excess (deficiency) of revenues over expenditures (11,466,000) (11,373,933) (5,094) (11,379,027)
Other financing sources (uses)
Proceeds of debt issuance 7,900,000 7,900,000 0 7,900,000
Transfers out (1,030,000) (746,411) 0 (746,411)
Total other financing sources (uses) 6,870,000 7,153,589 0 7,153,589
Net change in fund balance (4,596,000) (4,220,344) (5,094) (4,225,438)
Fund balance, July 1, 2010 4,599,060 4,599,060 12,630 4,611,690
Fund balance, June 30, 2011 3,060 378,716 7,536 386,252
Spending: Getting cash via Bonds:
$4.5M cash on
$8M LCC $3.5M for LCC
hand + bonds
$4.4M for BP Garages
Remainder for BP Garages
$7.9M
22
Project Delivery Administration
Actions for this activity include program administration (project management, financial services, Downtown
Revitalization Loan Program administration, debt issuance and administration); legal services; reporting
(budgets, financials); preparation of market, feasibility, or other economic studies; preparation of design,
architectural, engineering, landscaping architectural, planning, development, or other developmental studies;
providing accounting or audit services; providing special rehabilitation, restoration, or renovation feasibility
and cost analysis studies; assisting in preparation of the annual financial report required under Section 800 of
the Plan; providing property acquisition appraisals; and evaluation of the plan and the success of its activities.
Many of the activities are provided through an intergovernmental contract between the City of Eugene and
the Agency. The Agency may also 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 the Plan. (See
Attachment 1 for excerpts from the Plan and Report related to this project.)
Expenditure Summary
FY11 FY11 FY10 Authorized Amount
Budget Expenditures Expenditures by Plan Remaining
Authorized Under 1998
$530,000 $251,541 $472,044 $860,000 $136,415
Plan Amendment
Authorized under 2010
$150,000 $27,851 n/a $1,190,000 $1,162,149
Plan Amendment
Totals $680,000 $279,392 $472,044 $2,050,000 $1,298,564
When the Plan was amended in 2010, there was some authorization remaining under the spending limit set in
1998. In the Plan Estimate, the amounts for project delivery administration to be counted against the 1998
spending limit were noted. Actual expenditures against that amount in FY10 were $472,044 and in FY11 were
$251,541. In FY11, expenditures were split between personnel ($155,062), legal ($43,553) and
materials/supplies ($52,926). After the FY11 expenditures, $136,415 remains under the 1998 limit that can be
spent in future years.
The 2010 Plan amendment authorized an additional $1,190,000 for project delivery administration. In FY11,
$27,851 was spent under this authorization for bond issuance costs, which was less than the budgeted
amount because of the type of bonds issued (private vs. public and taxable vs. tax-exempt). Debt issuance
costs include bond counsel, financial advisor, and origination and bank legal fees.
The budgeted project delivery administration spending for FY11 was $530,000. Due to the timing of the
budget process versus the schedule for the Beam loan, the unspent legal costs of $200,000 from FY10 were
rebudgeted in FY11 to ensure that there was adequate spending authority if needed to complete the legal
work for the loan. Actual legal costs were less than budgeted in both FY10 and FY11. (Additional detail is in
Attachment 2 The Plan Estimate and excerpts from the Annual Financial Report fiscal year ended June 30,
2011.)
Funding Sources: Urban renewal funds were the only source.
23
Attachment 1
Excerpts from Plan & Report
Project Delivery Administration
Downtown Urban Renewal Plan (June 25, 2010)
Section 600 D. Many of the activities are provided through a contract between the
City of Eugene and the Agency dated June 15, 2004.
1.The Agency may retain the services of independent professional people or organizations to provide
administrative or technical services such as:
a.Project management;
b.Preparation of market, feasibility, or other economic studies;
c.Preparation of design, architectural, engineering, landscaping architectural, planning,
development, or other developmental studies;
d.Preparation of property acquisition appraisals;
e.Provision of special rehabilitation, restoration, or renovation feasibility and cost analysis
studies;
f.Provision of legal, debt issuance, accounting or audit services; and
g.Assistance with preparation of the annual financial report required under Section 800 of
this Plan.
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.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 Urban Renewal District Report (June 25, 2010)
Chapter 6: Project Delivery Administration Actions for this activity include program administration (project
management, financial services, debt issuance and administration); legal services; reporting (budgets,
financials); preparation of market, feasibility, or other economic studies; preparation of design, architectural,
engineering, landscaping architectural, planning, development, or other developmental studies; providing
accounting or audit services; providing special rehabilitation, restoration, or renovation feasibility and cost
analysis studies; assisting in preparation of the annual financial report required under Section 800 of the Plan;
providing property acquisition appraisals; and evaluation of the plan and the success of its activities. Many of
the activities are provided through a contract between the City of Eugene and the Agency dated June 15,
2004. The Agency may also 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.
24
Projections for district administration assume that once the LCC and Beam projects are complete, district
administration expenses will be reduced to a minimal level that will be sufficient to ensure administration of
outstanding debt, budget development, annual review of project activities, and financial report preparation.
Specifically, the administration projection includes staffing at 1.4 FTE for years FY2010/2011 through
FY2012/2013 followed by 0.14 FTE for years FY2013/2014 through FY2017/2018. Additional items in the
projection include legal and consulting fees necessary to protect the City/Agency and complete the Projects,
debt issuance cost needed for the Projects, and property management.
25
Attachment 2
Additional Expenditure Detail Admin
Plan Estimate
26
Annual Financial Report Excerpts
Urban Renewal Agency of the City of Eugene, Oregon
Where tax increment goes when 1 collected
Debt Service Fund
st
-
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
Actual
Budget GAAP
Budget basis Adjustment basis
Revenues
Taxes 1,920,000 1,859,593 0 1,859,593
Miscellaneous 25,000 46,409 (5,094) 41,315
Total revenues 1,945,000 1,906,002 (5,094) 1,900,908
Expenditures
Debt service 150,000 27,851 0 27,851
Intergovernmental 13,261,000 13,252,084 0 13,252,084
Total expenditures 13,411,000 13,279,935 0 13,279,935
Excess (deficiency) of revenues over expenditures (11,466,000) (11,373,933) (5,094) (11,379,027)
Other financing sources (uses)
Proceeds of debt issuance 7,900,000 7,900,000 0 7,900,000
Transfers out (1,030,000) (746,411) 0 (746,411)
.25
Total other financing sources (uses) 6,870,000 7,153,589 0 7,153,589
Net change in fund balance (4,596,000) (4,220,344) (5,094) (4,225,438)
Fund balance, July 1, 2010 4,599,060 4,599,060 12,630 4,611,690
Fund balance, June 30, 2011 3,060 378,716 7,536 386,252
Admin and Legal $246,411 (to URA-General Fund)
$500,000 (to URA-Capital Projects)
$746,411
27
Urban Renewal Agency of the City of Eugene, Oregon
General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
BudgetActual
Budget
Actual
Budget GAAP
Original Final basis Adjustment basis
Revenues
Intergovernmental 6,504,000 6,504,000 4,149,682 0 4,149,682
Rental income 0 0 36,622 0 36,622
Charges for services 2,000 2,000 13,230 0 13,230
Repayment of revolving loans 0 0 0 259,022 259,022
Miscellaneous 46,000 46,000 17,384 (2,865) 14,519
Total revenues 6,552,000 6,552,000 4,216,918 256,157 4,473,075
Expenditures
(
Urban renewal redevelopment
Admin & Legal)
530,000 530,000 251,541 5,494,197 5,745,738
Loans granted 8,499,967 8,302,558 5,494,197 (5,494,197) 0
Contribution of asset held for resale 0 0 0 538,929 538,929
Total expenditures 9,029,967 8,832,558 5,745,738 538,929 6,284,667
Excess (deficiency) of revenues over
expenditures (2,477,967) (2,280,558) (1,528,820) (282,772) (1,811,592)
Other financing sources (uses)
Principal payments received 259,022
50,000 50,000 (259,022) 0
Transfers in 530,000 530,000 246,411 0 246,411
Total other financing sources (uses) 580,000 580,000 505,433 (259,022) 246,411
Net change in fund balance (1,897,967) (1,700,558) (1,023,387) (541,794) (1,565,181)
Fund balance, July 1, 2010 1,947,967 1,700,558 1,700,558 543,399 2,243,957
Fund balance, June 30, 2011 50,000 0 677,171 1,605 678,776
28
Existing Activities
(pre-2010 Plan Amendment)
The Agency may complete urban renewal projects authorized prior to the 2010 Plan Amendment (for
example, the Beam Development project at Willamette and Broadway and downtown lighting) per section 600
E of the Plan. The anticipated spending on existing activities was $234,593 to occur in FY10 from funds
available under the spending limit set in 1998.
The Agency also may continue to operate the Downtown Revitalization Loan Program. All dollars loaned must
come from program revenue in the loan fund and not from tax increment funds.
Expenditure Summary
FY11 FY11 Authorized Amount
Budget Expenditures by Plan Remaining
Downtown Safety Initiative (Lighting) $100,000 $0 $100,000 $100,000
Misc. Carry Forward $134,593 $0 $134,593 $134,593
No funds were expended. Work began on the lighting project
report. In FY11, $134,593 was budgeted for capital projects that were authorized prior to the 2010 Plan
Amendment process. Spending of these dollars for additional capital projects not contemplated at the time of
the Plan Amendment is not allowed under the current Plan.(Additional detail is in Attachment 1 The Plan
Estimate and excerpts from the Annual Financial Report fiscal year ended June 30, 2011. Attachment 2
contains a list of FY11 loan recipients and amounts.)
Funding Sources
No funds were spent on existing activities in FY11.
29
Attachment 1
Additional Expenditure Detail Existing Activities
Plan Estimate
30
Annual Financial Report Excerpts
Urban Renewal Agency of the City of Eugene, Oregon
Capital Projects Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
Actual
Actual
Budget GAAP
Budget Basis Adjustment basis
Revenues
Miscellaneous 1,000 2,249 17 2,266
Total revenues 1,000 2,249 17 2,266
Expenditures
Capital outlay 734,593 0 0 0
Total expenditures 734,593 0 0 0
Excess (deficiency) of revenues over expenditures (733,593) 2,249 17 2,266
Other financing sources (uses)
Transfers in 500,000 500,000 0 500,000
Total other financing sources (uses) 500,000 500,000 0 500,000
Net change in fund balance (233,593) 502,249 17 502,266
Fund balance, July 1, 2010 237,918 237,918 347 238,265
Fund balance, June 30, 2011 4,325 740,167 364 740,531
Budgeted:
$100,000 Lighting
$134,593 Misc. carry over from prior years
31
Urban Renewal Agency of the City of Eugene, Oregon
General Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual
For the fiscal year ended June 30, 2011
(amounts in dollars)
BudgetActual
Budget
Actual
Budget GAAP
Original Final basis Adjustment basis
Revenues
Intergovernmental 6,504,000 6,504,000 4,149,682 0 4,149,682
Rental income 0 0 36,622 0 36,622
Charges for services 2,000 2,000 13,230 0 13,230
Repayment of revolving loans 0 0 0 259,022 259,022
Miscellaneous 46,000 46,000 17,384 (2,865) 14,519
Total revenues 6,552,000 6,552,000 4,216,918 256,157 4,473,075
Expenditures
Urban renewal redevelopment 530,000 530,000 251,541 5,494,197 5,745,738
Loans granted 8,499,967 8,302,558 5,494,197 (5,494,197) 0
.25
Contribution of asset held for resale 0 0 0 538,929 538,929
Total expenditures 9,029,967 8,832,558 5,745,738 538,929 6,284,667
Excess (deficiency) of revenues over
expenditures (2,477,967) (2,280,558) (1,528,820) (282,772) (1,811,592)
Other financing sources (uses)
Principal payments received 50,000 50,000 259,022 (259,022) 0
Transfers in 530,000 530,000 246,411 0 246,411
Total other financing sources (uses) 580,000 580,000 505,433 (259,022) 246,411
Net change in fund balance (1,897,967) (1,700,558) (1,023,387) (541,794) (1,565,181)
Fund balance, July 1, 2010 1,947,967 1,700,558 1,700,558 543,399 2,243,957
Fund balance, June 30, 2011 50,000 0 677,171 1,605 678,776
recipients and amounts
32
Attachment 2
FY11 Loan Recipients and Amounts
The chart below provides the loan recipients, FY11 disbursement amount, loan amount, source of funds, use
Revitalization Loan Program. The DRLP is a flexible financing program designed to encourage investments
within the Downtown Urban Renewal District that contribute to the economic vibrancy and density goals for
downtown. The DRLP is also designed to be responsive to unique redevelopment opportunities, downtown
redevelopment challenges, and individual project financing needs. The loan program is administered by
downtown urban renewal staff and uses program revenue for loans (NOT tax increment funds). All loans are
reviewed by the Loan Advisory Committee.
Loan FY11 Private
Borrower Source Use
Amount Disbursement Funds
Federal
(Section
Beam
108 loan
$6.5 million $4,146,770 $750,000
Construction Loan
Development
guarantee & BEDI
grant) *
Building improvements to
Lord Leebrick $150,000 $32,427 DRLP $1.5 million
new location on West
Broadway
tenant improvements to new
location on West Broadway
Jazz Station $15,000 $15,000 DRLP $7,000
(one block west of the former
location)
Project costs for construction
Woolworth
of Woolworth Building (on
$1.3 million $1.3 million DRLP $9.7 million
Properties
Willamette next to the
Broadway Commerce Center)
Totals $7,965,000 $5,494,197 $11,257,000
* The federal (HUD) contract requires the funds to be suballocated to the Agency.
33