Item B: West Broadway Financing Plan

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EURA UGENE RBAN ENEWAL GENCY AIS GENDA TEM UMMARY Work Session: Finance Plan for Property Acquisition Meeting Date: February 27, 2008 Agenda Item Number: B Department: Central Services Staff Contact: Sue Cutsogeorge www.eugene-or.gov Contact Telephone Number: 682-5589 ISSUE STATEMENT The Urban Renewal Agency (URA) has directed the purchase of three properties within the West Broadway redevelopment area. The URA Board is asked to consider the finance plan for acquisition of the properties. BACKGROUND Agency Action History The URA secured purchase options on properties within the West Broadway redevelopment area between Willamette Street and Charnelton Street. The option terms and purchase prices associated with each of the purchase options were negotiated independently based on each property owner’s individual circumstances. On December 10, 2007, the URA provided direction to pursue a development agreement for the Beam Development project and to proceed with acquisition or assignment of the options on the Washburne building, Centre Court building and adjacent hole, within the financial constraints of the current $33 million urban renewal district spending limit. Also on December 10, 2007, the URA provided direction to proceed with acquisition of the Diamond property, also within the existing financial constraints of the urban renewal district spending limit. On February 11, 2008, the URA directed the Agency Director to … “bring back to the URA as soon as possible a methodology for soliciting offers from parties interested in assignment of the purchase options not being exercised by the URA with the first right to acquire the option to the tenant for the value that the URA paid for the option, and if the tenant was not interested, to solicit offers from others with some kind of provision that provides for a reasonable time frame for redevelopment after any demolition, with serious consequences if that redevelopment does not occur. In addition, the City th Council directed the City Manager to convey ownership of the City-owned parking lot at 12 & Oak to th Diamond Parking as partial compensation for the URA’s acquisition of the Diamond property on 10 & Olive Street. On March 10, 2008, the council will consider the supplemental budget action necessary to move forward with the purchase of the Centre Court building and adjacent hole ($2.8 million), the Washburne building ($1.9 million), and the Diamond property ($290,360). F:\CMO\2008 Council Agendas\M080227\S080227B.doc