Loading...
HomeMy WebLinkAboutCC Minutes - 02/08/06 Work Session M I N U T E S Eugene City Council Work Session McNutt Room—Eugene City Hall February 8, 2006 Noon COUNCILORS PRESENT: Jennifer Solomon, Andrea Ortiz, David Kelly, Betty Taylor, Gary Papé, Bonny Bettman, George Poling, Chris Pyror. Her Honor Mayor Kitty Piercy called the work session of the Eugene City Council to order. A. WORKSHOP: Update on 2008 Olympic Trials The council was joined by Library, Recreation, and Cultural Services Director Angel Jones, who recalled the council’s direction to her to attempt to secure the trials for Eugene. Mayor Piercy recognized Ms. Jones for her work in bringing the trials to Eugene, and those present applauded the efforts of Ms. Jones. Ms. Jones noted the relationship of the trials to the community’s work on health-related issues, such as youth obesity. She also suggested the trials would touch everything the City did with regard to service delivery and could help shape the future with regard to operational models between the City and its intergovernmental and private partners and models for collaboration, commitment, and involvement. Ms. Jones, a member of the Bid Presentation Committee, introduced the chair of the committee, Oregon Track Club President Greg Irwin, University of Oregon (UO) Associate Athletic Director and Track and Field Head Coach Vin Lananna, and USA Track and Field Chief Executive Officer Craig Masback. Mr. Irwin congratulated Ms. Jones on her role in bringing the trials to Eugene. He said she had been instrumental in the bid process and very valuable in securing the event. Mr. Irwin introduced other members of the Bid Presentation Committee present: Tom Jordan and Barbara Kousky of Northwest Events Management; Michael Riley, Assistant Athletic Director/Track Operations, UO Track and Field; Kari Westlund of the Convention and Visitors Association of Lane County (CVALCO); Jan Oliver of the UO; and Lane County Commissioner Bobby Green. Mr. Lananna said that the University was thrilled to host the event. He hoped the event represented the renaissance of track and field in Eugene which would spread throughout the region and country. Mr. Lananna highlighted the partnerships emphasized in the bid presentation process and suggested they were key to the success of the bid. He noted the contributions of Rudy Chapa, former UO runner, who stressed the mystique of track and field at Hayward Field to USA Track and Field. The council viewed a short video about Hayward Field that was prepared as part of the bid effort. MINUTES—Eugene City Council February 8, 2006 Page 1 Work Session Mr. Masback noted the competitive nature of the bid process, emphasizing that the choice of Eugene was not a “slam dunk.” Eugene had been selected because its presentation highlighted that the event would be a cultural and community event and the objectives outlined were in line with the objectives of his organization, which was involved in the anti-obesity movement. USA Track and Field operated a program called “Be a Champion,” through which it sent athletes to schools across the country to discuss the importance of a healthy lifestyle. Mr. Masback said that Ms. Jones’ presentation stimulated some thinking on the part of USA Track and Field to use the leadership that Eugene showed in environmental issues and highlight that throughout the trials, much as had been done in Helsinki, Finland, when that city hosted the World Track and Field Championships and highlighted its green initiative. Mr. Masback said the trials were now far larger and more complex than when he participated in them 26 years ago in Eugene, as demonstrated by increased media attendance and increased viewers around the world. He believed that Eugene was capable of putting on the event correctly and said it had significant upside potential. There would be eight nights of live competition shown on national television and around the world, and viewers would see images of Eugene, Lane County, and Oregon. Along with great athletes, viewers would see a beautiful venue. Community and arts events would be highlighted, as well as the welcoming of families coming to Eugene to view their family members competing. Mr. Masback said the stakes for Eugene and USA Track and Field were high because the 2008 Olympic Games were being held in China, and that fact would draw additional international attention to the trials. Track and field would be at the center of attention, and the team that dominated events in Beijing would be the team selected in Eugene. Mr. Masback thanked the council for its support of the event and for future such events. Mr. Irwin anticipated 17,000 spectators would view the trials daily, bringing in many people from outside of Eugene and Springfield. He said 30,000 room nights would be needed, and the trials could generate more than $300,000 in room tax revenues, with a direct benefit to the City’s Cultural Services Subfund. An overall economic impact of approximately $18 million was expected. Mr. Irwin said there were many partners in the process, including corporate sponsors, the UO, the City of Eugene, Lane County, and CVALCO. Those partnerships were essential to the success of the trials and he believed they established a framework for future events in Eugene. Mr. Irwin again commended Ms. Jones for her representation of the City and said she would be an important liaison for the committee. Mayor Piercy thanked the presenters and said she was both proud and a little bit scared. She agreed that the stakes were high but the opportunity was a great one for the community and the region. Mayor Piercy said that the council talked about sustainability frequently and the things that Mr. Masback mentioned with regard to highlighting Eugene’s green record seemed to be “so much us.” She thought the event gave residents the opportunity to share Eugene with the rest of the world. Mayor Piercy called on the council for questions and comments. MINUTES—Eugene City Council February 8, 2006 Page 2 Work Session Mr. Kelly thanked all those involved in bringing the event to Eugene. He was happy about the trials coming to Eugene. He said the event was exciting and significant for the community in terms of connections and opportunities. Mr. Kelly asked about opportunities for cross-promotion of other events. Ms. Jones said the entertainment committee would calendar other events with the goal of increasing room night stays. Mr. Kelly asked if there were any new hotel projects planned. Ms. Westlund responded that there had been some new hotel projects announced, including a Holiday Inn in the Gateway area. There were rumors of other projects that would provide rooms not included in the bid process. She did not anticipate housing would be a problem because many of the seats would be filled by local residents. There were also rooms available in neighboring communities. Eugene would work with those communities to make sure that visitors had easy access to the event. Mr. Kelly suggested the event could be an educational opportunity about track and field and said perhaps the committee could provide guidebooks about track and field for distribution in the schools and to residents like himself who knew nothing about track and field before arriving in Eugene. Mr. Masback said that a curriculum that crossed many subject matters could be developed. There was also cultural history attached to track and field. He thought there was an educational component that would serve to promote the event. He said that there had been progress in getting fans to understand what was going on, including internal event broadcasts and brochures. He said The Register-Guard traditionally did a good job in covering the Prefontaine Classic and thought it would do a good job with the trials as well. Mr. Papé also thanked those involved in bringing the event to Eugene. Mr. Papé determined from Ms. Westlund that a new Holiday Inn would be constructed on the site of the former Quality Inn, for a net addition of about 40 rooms. Those rooms were accounted for in the bid. Ms. Westlund confirmed that athletes would be housed at the Hilton Hotel and the media would be primarily housed at Gateway. She noted that the bid requirements called for a minimum of two 350-room hotels. Eugene’s largest hotel had 272 rooms. The hospitality industry had been very cooperative in helping the bid committee meet the requirements. Ms. Westlund acknowledged another large hotel would be useful. Responding to a question from Mr. Papé, Mr. Masback said USA Track and Field was a not-for-profit organization based in Indianapolis, Indiana, and was a product of the Amateur Sports Act, passed in 1978. The organization had about 100,000 members across the country. It created the rules for track and field. The organization certified records and sanctioned 5,000 races and events each year. It collaborated with the U.S. Olympic Committee and had responsibility for putting on the trials, working with local organizing committees to actually stage the event. USA Track and Field received no government funding. Revenues were from memberships, sanctions, merchandise sales, and corporate sponsorships. Mr. Papé suggested that, although it was not an Olympic event, the trials include a twilight mile race for “old time’s sake.” Responding to a question from Ms. Taylor, Ms. Kousky said that the UO would set aside rooms to be used by athletes and spectators. The new Living Learning Center would be used to house athletes. MINUTES—Eugene City Council February 8, 2006 Page 3 Work Session Ms. Taylor asked how the event could be made more environmentally friendly. Mr. Masback invited suggestions. He said that the event in Helsinki included recyclable serving items and a stand at the athletes dining hall with information about environmental issues. He thought a good blue print existed from that event. Ms. Taylor suggested that the event could highlight locally grown organic foods. Mr. Masback believed that was a suggestion appropriately directed at the UO, but indicated he would support it. Ms. Taylor liked the emphasis the organization placed on education about health. She determined from Mr. Masback that the event would include the Olympic qualifier for the 20 kilometer walk for men and women. That event took place on public streets and was accessible to the community. Mr. Masback pledged to bring the athletes who would participate in the games to town on a regular basis to visit the schools through the “Be a Champion” program. Mr. Poling thanked the committee members and asked them to keep up the good work. He acknowledged the County’s pledge of Room Tax dollars to support the event and noted the fact the City would also be asked to make a financial contribution. He asked the City Manager to propose funds in the upcoming budget for fiscal year 2007 to support the event. Mayor Piercy thanked the presenters again. B. WORK SESSION: East Broadway Development Update The council was joined for the item by Nan Laurence of the Planning Division, Sue Cutsogeorge of Financial Services, and Mike Sullivan of Development Services. Planning and Development Director Susan Muir was also present. Ms. Laurence shared a PowerPoint presentation on the East Broadway Development Project proposal that highlighted the project’s consistency with adopted policies, identified the parties to the project (Gerding/Edlen Developers, Whole Foods, the City, The Shedd, and Oregon Central Credit Union), outlined the current and projected site ownerships, and illustrated the proposed land transaction. The presentation further identified the need for parking in the area and highlighted the elements of the proposed public parking garage associated with the project to meet that demand and to encourage further private develop- ment in the area. The construction of the public parking garage was a condition of the agreement between the developer and Whole Foods. The developer was committed to building the parking facility for a fixed dollar amount. Ms. Laurence noted the options for the parking garage prepared for the council’s consideration, and recommended Option 4, a larger garage with added commercial spaces. MINUTES—Eugene City Council February 8, 2006 Page 4 Work Session Ms. Cutsogeorge reviewed the projected costs of the four options outlined by staff. She said staff identified a funding strategy for Option 4 that allowed for the City’s participation if the council chose to move forward. Because the project was in the Riverfront Urban Renewal District, the majority of costs would be borne by the district, with the remainder to be made up from other City sources. She confirmed that the project qualified for district funding. There were two main funding sources in the district: 1) borrowing, which would be backed by urban renewal revenues; and 2) the cash on hand at the time the purchase was made. Ms. Cutsogeorge said the benefit of the strategy was that it took advantage of the tax revenues generated by the private development on the site to pay for a portion of the garage costs over time. Those dollars would not be available if the project did not occur. Borrowing would require all projected and existing increment but would leave sufficient money to operate the district. Because McKenzie-Willamette Medical Clinic chose an alternative site, the dollars the council set aside for the purchase of the riparian area at the Eugene Water & Electric Board site could be used for the garage project. The total urban renewal contribution would be $5.5 million. Ms. Cutsogeorge identified the three sources of City funding: 1) Stormwater Fund, 2) Library Debt Service Fund, and 3) Facilities Reserve. The district would reimburse the City over time, contingent on the development that occurred, the sale of properties owned by the district, or an increase in property values in the district. The total City contribution was $2.5 million. Ms. Cutsogeorge indicated that staff would review the cash situation and bonding capacity as the purchase date neared and return to the council with any adjustment in the strategy. She said staff was also examining an alternative financing strategy that involved the use of a $2 million grant the City recently received from the Housing and Urban Development Department to mitigate brownfield conditions. th Ms. Laurence shared slides of 8 Avenue, reminding the council it was a designated “Great Street” where people would want to be. The City was implementing the Downtown Plan on a project-by-project basis. She said the Whole Foods project was consistent with the vision and policies outlined in the Downtown Plan. Ms. Laurence noted the action requested of the council, which was to direct the City Manager to negotiate a land transaction agreement, a development agreement and related legal documents, and to bring all the aforementioned documents to the council for final approval. Mayor Piercy called for council questions and comments. Mr. Kelly thought the project was exciting and wanted it to happen. He thought a parking garage would benefit The Shedd’s continued growth as well. He said the store could be built as an outright use on the site in question; the question before the council today was the degree of City participation in the project. Mr. Kelly suggested another work session be scheduled, given the complexity of the topic. Mr. Kelly suggested the City needed to get out in front of the issue of downtown green space. He overviewed a proposal for a “green ribbon” connecting the Park Blocks downtown to the river. That proposal would require subgrade parking on the site. Ms. Laurence said staff discussed an enhanced th sidewalk along 8 Avenue using existing right-of-way to create a green walk. Mr. Kelly wanted more council discussion of the subject. MINUTES—Eugene City Council February 8, 2006 Page 5 Work Session Ms. Ortiz was glad that Mr. Kelly raised the point that the business in question was an outright use. She was concerned about the City providing staff assistance to a particular business when there were other smaller businesses that could also use City help. She had reservations about the City helping some, but not all, businesses. Ms. Bettman did not think the council had adequate time for discussion and agreed that a second work session was needed. She wanted to see a range of options rather than a single option. She was not convinced the proposal was the best investment for the money. Ms. Bettman commended Whole Foods for including embedded parking within its infrastructure. Ms. Bettman concurred with the remarks of Ms. Ortiz, saying that the business in question could go through the normal development process without City assistance. Ms. Bettman said there were several things she would like to see before she could support the project. The first was financial participation from the County and the General Services Administration (GSA) for the project. She did not want to use any City funds outside the district. She believed there were higher priorities for the money; for example, the City could still purchase the riparian area if EWEB decided to move, and the Library Debt Service Fund could be used to offset the library levy. Ms. Bettman wanted to see the parking consolidated and that there be no publicly funded commercial spaces provided. She suggested that the remainder of the City-owned property at the site be sold and the money used to fund the parking structure. Ms. Bettman said the City should share the cost of the utility upgrade with the developer as being commensurate with the benefit offered to the developer. Ms. Bettman believed that if a public parking structure that met a public need was proposed, there should be a competitive bidding process. Ms. Taylor agreed that the business could locate without City assistance and she did not see reason to assist Whole Foods. She did not think there was a great need for a new source of organic foods as there was abundance of such foods. She suggested that a local organic foods store could locate at the site. She questioned the size of the grocery store being proposed, as it was rather large to serve downtown residents. Ms. Taylor was opposed to spending money on the project unless there was public need and desire for a parking structure. She thought it was great that Whole Foods was providing its own parking but questioned why the City had to suddenly decide it must build a parking structure. She suggested the City could accommodate The Shedd’s desire to add a music school by exchanging City property in a separate transaction. She also requested another work session as well as a public hearing. Ms. Taylor said even if she thought the proposal was wonderful she would want to wait and see what happened with the Oregon Research Institute. She suggested the City put more thought into how it used that space downtown and consider other uses. Mr. Papé was excited about the project and its implications for downtown. He hoped the council did not “blow it,” as it had a short window of opportunity to determine how downtown looked in the future. He feared that if the council missed the window, conditions in the downtown would continue as they were. Mr. Papé hoped the City moved forward with the project to the degree finances were available. MINUTES—Eugene City Council February 8, 2006 Page 6 Work Session Mr. Papé concurred with Ms. Bettman that the development should be commended for the proposed parking. Mr. Papé asked about other potential projects in the district. Mr. Sullivan said there was a lot of discussion about potential redevelopment on various properties but no clear indication of what would happen. The financial analysis did not take into account any increment generated by those uses. City Manager Taylor indicated that staff hoped the development could be a catalyst for further development of the type envisioned in the Downtown Plan. Responding to a question from Mr. Papé about the use of the Library Debt Service Fund, Ms. Cutsogeorge said that the money was originally from the General Fund and not part of the urban renewal financing for the library. Mr. Papé asked if the City could condition the use of money from the Facilities Reserve on repayment from the Urban Renewal District. Ms. Cutsogeorge indicated that was staff’s intent and would be included in the materials the council saw on February 22. Mr. Sullivan added that it was possible the sale of City property could generate some funds for that purpose. Mr. Papé asked if systems development charge revenues could be used on the project. Public Works Director Kurt Corey said no. Mr. Papé asked if the City considered building a pedestrian structure off the northeast corner of the parking structure across Mill Street to serve the federal courthouse. Mr. Sullivan said the idea had come up. The City owned the corner across the street and there would be an elevator in that garage that would obviate the need for a ramp. Mr. Papé suggested that a pedestrian structure could spur federal financial participation. Ms. Solomon, seconded by Ms. Ortiz, moved to direct the City Manager to negotiate a land transaction between property owned by the City and property owned by The Shedd Institute for the Arts, LLC for the purpose of participating in the Whole Foods Development Project, and to bring back final terms for council approval. Mayor Piercy called for comments on the motion. Ms. Solomon said the council heard a compelling argument that there was a need for more parking downtown. The council spent considerable money to create an environment that attracted this type of project. She hoped the council moved forward and did not stall the process. She said the project was consistent with previous council discussions and established downtown goals in terms of making downtown more accessible and desirable for people to visit. Mr. Pryor agreed with Ms. Solomon that the need for additional parking had been established. The question was whether there would be economies of scale or value to be realized by building a public parking garage in conjunction with the Whole Foods development. He thought the answer to the question was yes and that considerable savings would be realized through the partnership and coordination of construction. He believed the partnership would be advantageous to all parties involved and would save public money. Mr. Pryor thought the financing package intriguing and creative and was persuaded to look on it favorably because the City contribution represented the least amount of out-of-pocket cash. He was supportive of the project and thought it would benefit downtown. MINUTES—Eugene City Council February 8, 2006 Page 7 Work Session Mr. Poling agreed with the remarks of Ms. Solomon and Mr. Papé. He said the proposal represented a window of opportunity for the council to address some long-established, but unaccomplished, City visions and goals for downtown. He agreed with Mr. Pryor about the financing package. The project would cost the City something but it would have a benefit. He said the proposal was not just about an individual development but about what the City had envisioned for that part of town for many years. Regarding the potential of County and federal involvement in the parking structure, Mr. Poling pointed out that many people would use the facility, not just those going to the County or federal offices. He would not blame the County for not being receptive to the City’s overtures for funding given the council’s recent interactions with the Board of County Commissioners. He thought some bad choices had been made with regard to how the City dealt with the County, and opportunities to work together had been lost. He said if there was anything he could do to “extend a hand across the bridge” or work with the federal government, he would do it. Mr. Poling also agreed the demand for parking had been proven and he consistently heard complaints about a lack of parking in downtown. He thought the project worthwhile and pointed out the motion merely started a process that would require final council approval. Mr. Poling agreed with Mr. Kelly it was likely another work session would be needed. Mr. Kelly said he supported the project and expected to support the City’s participation if City policies were satisfied and its interests were met. He did not think the proposal inconsistent with the concept of the City helping small businesses, and invited proposals from local small businesses either individually or in consortia. He noted that he had to leave the meeting at the scheduled ending time and asked that action be postponed if he had to leave. Mr. Kelly referred to the proposed land transaction and requested a written answer to the question of whether, when the exchange was done, the City would own part of the northern half block. Responding to a question from Mayor Piercy, City Manager Taylor indicated it would be useful if the council could take action that day, given that the motion merely started the process. Mr. Kelly, seconded by Ms. Bettman, moved to table the motion until February 22, 2006. The vote on the motion was a 4:4 tie; Mr. Poling, Ms. Solomon, Ms. Ortiz, and Mr. Pryor voting no; Ms. Taylor, Mr. Kelly, Mr. Papé, and Ms. Bettman voting yes; Mayor Piercy cast a vote in opposition and the motion failed on a final vote of 5:4. Mayor Piercy stated that the motion was still on the table and given that the meeting was approaching its scheduled ending time, she asked for a motion to extend the meeting. Ms. Bettman, seconded by Mr. Poling, moved to extend time for the item by five minutes. The motion passed, 6:2; Mr. Papé and Ms. Taylor voting no. Ms. Bettman said she could have supported the motion in the PowerPoint presentation (direct the City Manager to negotiate a land transaction and to bring back final terms for council approval). She indicated her support for the equitable exchange of land between the City and The Shedd and would be happy to proceed with that. However, the motion implied it was a facilitative move to participating in the Whole Foods development, and it was her opinion that the council “hadn’t gotten there yet.” MINUTES—Eugene City Council February 8, 2006 Page 8 Work Session Ms. Bettman offered a friendly amendment that deleted the words in the motion following “The Shedd Institute for the Arts, LCC.” Otherwise, she would have to vote against the motion because the council had not yet adequately discussed the issues involved. Mr. Kelly left the meeting. City Manager Taylor said his concern about delay was specifically related to the possibility that land could be exchanged without a tie to the more specific development proposal, leading to the loss of all potential tax revenue from that property. Ms. Solomon declined to accept the friendly amendment. Ms. Bettman maintained that, given expected population growth in the valley, to approach such proposals from a “position of desperation” was a mistake. She said the City could afford to take the time to establish whether there was a public benefit. She could support the transaction knowing there was the possibility for development, but would not “rubber-stamp” the proposal until the council saw the details. Ms. Taylor wished to honor Mr. Kelly’s request for postponement. Mr. Papé concurred. Mr. Papé, seconded by Mr. Pryor, moved to table the item to February 13, 2006. The mo- tion passed unanimously, 7:0. Respectfully submitted, Dennis M. Taylor City Manager (Recorded by Kimberly Young) MINUTES—Eugene City Council February 8, 2006 Page 9 Work Session