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City of Springfield
Special Regular Meeting
MINUTES OF THE SPECIAL REGULAR MEETING
OF THE SPRINGFIELD CITY COUNCIL HELD
MONDAY, JANUARY 20,2004.
Minutes of the Special Regular Meeting of the Springfield City Council held on Monday, January
20, 2004, at 7 p.m.
ATTENDANCE
Present were Mayor Sid Leiken, Anne Ballew, Tammy Fitch, Tim Malloy, Dave Ralston,
Christine Lundberg, John Woodrow.
ABSENT:
None.
STAFF: City Manager Mike Kelly, Assistant City Manager Cynthia Pappas, Planning Director
Greg Mott, Fire Chief Dennis Murphy, Nick Arnis, Gary McKenny, Assistant City Attorney Meg
Kieran.
CALL TO ORDER
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Mayor Sid Leiken called the meeting ofthe Springfield City Council to order.
ROLL CALL
Assistant City Manager Cynthia Pappas called the roll.
PLEDGE OF ALLEGIANCE
SPRINGFIELD UPBEAT
There was no report.
CONSENT CALENDAR
Ms. Fitch removed item 3a (Resolution No, 1, creating a designated redevelopment area in
downtown) from the Consent Calendar and declared a potential conflict of interest due to her
ownership of a commercial building in the downtown area. Mr. Malloy removed items 5a and 5b
(both involving contracts with PeaceHealth) and declared a potential bias due to his employment.
Ms. Lundberg also declared a conflict of interest regarding item 3b because of her interest in a
lease on property in the area.
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Ms. Fitch, seconded by Ms. Ballew, moved to approve the
Consent Calendar without items 3a, 5a, and 5b. The motion
passed unanimously, 6:0.
ITEMS REMOVED FROM THE CONSENT CALENDAR
Ms. Ballew, seconded by Mr. Woodrow, moved to approve
Resolution No.1, a resolution creating a designated
redevelopment area in downtown, as described in the
Community Development Block Grant Program under 24 CFR
9570.208(b). The vote on the motion was 4:2:0; Ms. Lundberg
and Ms. Fitch abstained from the vote.
Ms. Fitch, seconded by Ms. Ballew, moved to approve items 5a
and 5b on the Consent Calendar. The motion passed, 5:1:0; Mr.
Malloy abstained from the vote.
PUBLIC HEARINGS
1. Request for Master Plan and Zone Change Approval-PeaceHealth
Mayor Leiken opened the public hearing and called for conflicts of interest or ex parte contacts.
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Assistant City Attorney Meg Kieran said the council's decision must be based on evidence in the
record. Any other basis for the decision could invalidate the decision. She said councilors must
declare any conflicts of interest, which she defined as financial benefit to a councilor or family
member as a result of the decision, and any ex parte contacts, which were contacts outside the
record related to the proceeding.
Ms. Lundberg indicated she had several casual conversations with acquaintances about the master
plan application, but nothing specific or that would affect her decision making.
Mr. Woodrow had no conflicts to declare.
Ms. Fitch indicated she also had casual contacts about the application but nothing outside the
record. Those contacts did not bias her decision.
Mayor Leiken declared two ex parte contacts, one with PeaceHealth Chief Executive Officer
Alan Yordy over an unrelated matter and with PeaceHealth board member Gretchen Hult Pierce
about a personal issue.
Ms. Ballew indicated she too had no contacts outside casual conversations.
Mr. Ralston had no ex parte contacts or conflicts of interest to declare.
Mr. Malloy declared a conflict of interest due to his employment and left the dais.
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Ms. Kieran reviewed the criteria of approval for the master application from Article 37 of the
Springfield Development Code, and the criteria of approval for the zone change application
(Article 12).
Mayor Leiken called on Mr. Stephens for the staff report.
Mr. Stephens reported that a staff review team had spent six months reviewing the master plan
application before forwarding a recommendation of approval to the Planning Commission, which
held numerous work sessions and two public hearings on the application before forwarding a
unanimous recommendation of approval to the City Council, with two additional conditions of
approval.
Mr. Stephens entered the record of the proceedings into the public record, which was available
for review at the Development Services Department, and indicated he and other staff were present
to answer questions.
Mayor Leiken called on the applicant's representatives for testimony.
Alan Yordy, Chief Executive Officer of Peace Health, noted the many hours spent on the master
plan application by representatives of Peace Health and Springfield staff, and thanked the council
for the council and staff for their work. He said that only a few issues remained to be worked out.
Mr. Yordy noted the beauty of the development site and said that PeaceHealth looked forward to
becoming a part of the Springfield community.
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Mr. Yordy addressed a question asked by Ms. Ballew at thework session regarding whether
PeaceHealth intended to sell the residential portion of the property, indicating that PeaceHealth
did not intend to sell much of the site but would partner with private developers to develop the
residential portion of the property in an appropriate manner.
Mr. Yordy shared his vision of the hospital as a place of healing, living, and employment, and
said 27 acres of open space on the site would be provided for the benefit of the patients and
residents.
Mr. Yordy said the size of project was unprecedented in this area and it was appropriate that the
community debated what it meant to its future. He reaffIrmed PeaceHealth's commitment to the
RiverBend project. He said, however, that PeaceHealth needed to be a wise steward of its
resources, and had to consider the investments it was making over the long.term. He said
PeaceHealth had committed a record number of dollars to public infrastructure investments and
had also committed to paying Springfield $2.9 million annually in property taxes over the first ten
years of hospital operations. He said that PeaceHealth could not make those investments without
assurances it had enough commercial property to develop in that ten-year period. PeaceHealth
also needed assurances that its investments in infrastructure would provide it with an adequate
number of trips to build out the first phase of the master plan through 2017. Mr. Yordy pointed
out that the hospital would both create jobs and draw investments from outside the community.
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Mr. Yordy addressed the issue of timing, urging the council to act on the request on February 23,
2004, rather than waiting until March. He said that would allow the record to remain open
somewhat longer to accommodate staff and the public while continuing to move the project
along. He said that the land use process had taken over two years to this point, and it was
important to conclude it at some point. He termed the application the "opportunity of a century"
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and said the project would serve the community and the region's health care needs for many
generations. Mr. Yordy requested the council's approval of the master plan application, which he
termed a model for the nation.
Philip Farrington, 677 East 12th Avenue, Suite N-225, Eugene, Director of Land Use Planning
for PeaceHealth, submitted written testimony as well as proposed changes to conditions 29 and
35. He also commended the work of Springfield staffand said the end product of the staff review
was a vastly improved master plan.
Mr. Farrington showed the council an animated flyby of the master plan.
Mr. Farrington said that the master plan as presented created an opportunity for residents to live,
work, and shop in the area, with access to unexcelled medical services. He said the project would
enhance the riverfront and conserve natural assets on site. The project would integrate
transportation systems onsite and provide for amenities needed to serve the development off-site.
Mr. Farrington said that PeaceHealth was seeking flexibility within the uses proposed for the site,
which led him to discussion of the four outstanding issues that remained to be addressed. The
first involved the vesting of Peace Health's trips. He said that PeaceHealth was funding the costs
of infrastructure needed to serve the development, and needed a mechanism to ensure that trips in
the trip cap would be available to the development in the future. Mr. Farrington requested
assurances from the City that, prior to its investments in public improvements, PeaceHealth
would be equitably able to use the capacity provided to serve the development at RiverBend. He
suggested that an agreement be developed between PeaceHealth and Springfield regarding such a
mechanism.
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Regarding the Planning Commission's recommendation that the parking structure be constructed
prior to occupancy of the hospital, Mr. Farrington requested the flexibility for PeaceHealth to
build the facility when it was economically feasible. He said that parking structures were much
more expensive than surface parking and generally were publicly subsidized rather than privately
constructed. Mr. Farrington asked that the construction ofthe parking structure be attached to
need. He said that until the North Medical Office Building was constructed, surface parking
would suffice to serve the hospital. He requested that the City encourage but not require the
parking structure.
Regarding the Planning Commission recommendation for the zoning assignments on the
property, Mr. Farrington said that PeaceHealth had demonstrated the need during the plan
amendments process for 33 acres of commercial zoning and had been consistent in using the 66
acres of Medical Services (MS) zoning and 33 acres of Mixed-Use Commercial (MUC) zoning as
the basis for its traffic projections. He asked that the zoning be assigned to the site in a manner
consistent with the Gateway Refinement Plan and Eugene-Springfield Metropolitan Area General
Plan (Metro Plan) amendments and traffic analysis.
Continuing, Mr. Farrington clarified that the traffic modeling was based on medical office
buildings, but that was done to be conservative in the projections of parking generation. He said
that ultimately, the building would be occupied by medical services, but PeaceHealth did not
want to foreclose on the additional opportunities that were created by the MUC zoning. Those
opportunities could create an income flow, allowing PeaceHealth meet its property tax
obligations to Springfield, and create a thriving commercial area in north Springfield. The zoning
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also gave PeaceHealth the opportunity to "feather in" various uses that could be located in a
vertical, mixed-use format.
Mr. Farrington noted that the City had not yet applied the nodal designation anywhere. The
commission's recommendation was predicated on the application of the nodal development
overlay. He suggested that given the overlay had not been used, the condition was premature.
PeaceHealth was seeking the flexibility provided by the MUC zoning, and believed there was a
big difference in value between the two zones.
Mr. Farrington said that Condition 12 recommended the council initiate the application ofthe
nodal development designation to the entire site. He pointed out that PeaceHealth intended to
create an area which achieved the goals of the overlay. He asked the council to delete the
condition and to take it up later during the nodal implementation process.
Mr. Farrington closed by acknowledging the work done by Springfield staff in ensuring the
policies of the Gateway Refinement Plan were satisfied. He said that PeaceHealth had also tried
to comply with relevant planning documents.
Mr. Farrington provided copies of the animation CD to councilors.
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Dr. Tom Row discussed the regional nature of the facility that PeaceHealth proposed to
construct. He observed that people were surprised when he told them that 40 percent of
PeaceHealth'spatients come from outside Lane County. The hospital had evolved over time
from a community to a regional facility. Dr. Row said that PeaceHealth had run out of room to
expand in its current location in Eugene. A new facility was needed to address the hospital's
space needs and emerging medical technologies.
Dr. Row said the Sisters of Saint Joseph of Peace were generous to PeaceHealth but fmances
were limited. An overrun at one hospital in the PeaceHealth system affected the ability of
another hospital in the system to deliver services.
Jill Hogarth Green, Hospital Administrator at Sacred Heart Medical Center, said PeaceHealth
planned to provide state of the art service at the new facility. She reported that since the plan
amendments process, more than 500 staff members, including doctors and nurses, were involved
in the design of the new hospital. Ms. Green said the hospital would be a model for the nation
and would serve the most vulnerable members of the community, such as premature babies. She
noted PeaceHealth's plans for large operating rooms to accommodate state-of-the-art technology
now and in the future. She anticipated that PeaceHealth would deliver excellent care at the new
facility .
Ms. Green emphasized that delays in the construction process cost PeaceHealth money. She
preferred that those dollars go to patient care. She asked for the council's help in getting the
project going and emphasized Peacellealth's work with staff in reaching an outcome all could be
comfortable with. She said the project was not just "bricks and mortar." PeaceHealth touched
the lives of many people, and its facility in Springfield would be a legacy for the future.
Mayor Leiken called on members ofthe public for testimony.
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Hillary Wylie, representing the Lane Transit District (LTD) Board of Directors, shared the
district's plans for providing transit service in the vicinity of the RiverBend site. She said that
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L TD had been working with Springfield and PeaceHealth since PeaceHealth decided to move to
RiverBend, and believed it had transportation solutions for the hospital campus. She noted
LTD's long partnership with PeaceHealth in providing employee bus passes and anticipated that
would continue at the new location.
Ms. Wylie discussed the agreement reached by L TD, Springfield, and PeaceHealth to locate the
Bus Rapid Transit (BRT) line in the median of RiverBend. She said that LTD supported the
change and believed it would function well. The Planning Commission's recommendation
regarding the placement of the line was made prior to the agreement regarding the location of the
line, and thus the condition it forwarded to the council was rather vague in terms of location. She
asked that the specifics ofthe design be included as a condition of approval. Ms. Wylie
supported a condition of approval calling for the establishment of a south BR T station to serve the
PeaceHealth development and residents to the west. She said L TD was exploring options for the
location of the station.
Lauri Segal, 1000 Friends of Oregon, 120 West Broadway, Eugene, said the amendments before
the council were not consistent with relevant goals and statutes, the Springfield Development
Code, and other planning documents because of the Land Use Board of Appeals (LUBA)
decision on the appeal related to State goals 12 and 9. She said that until the City responded to
the board's decision, it was difficult for her to comment on the record. Ms. Segal she said
residents were concerned about traffic and area livability, and the LUBA decision addressed both
those concerns. Ms. Segal said it was difficult for her to believe the public's concerns were
listened to as they had been raised before in testimony. Now it appeared that LUBA agreed with
those opposing the project that their concerns were real.
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Ms. Segal expressed appreciation for the additional time the record was to be kept open. She
suggested that, until there was a written legal response to LUBA regarding goals 9 and 12, the
record was incomplete. She asked that she and the public be noticed of any changes to the record.
Rob Zako, 1000 Friends of Oregon, 120 West Broadway, Eugene, identified himself as a
transportation advocate and noted his long-time concerns about transportation facilities in the
project area. He said he had been told throughout the process that there was a sequence to be
followed, and certain steps came first. He maintained that the fIrst step in the process, the plan
amendments process, were not complete because of the LUBA appeal. Mr. Zako briefly
reviewed the points of the appeal, noting that impact was the crux of the issue. LUBA had
concluded that impact of the development during the planning period must be addressed as well.
Mr. Zako said that Springfield had yet to do the analysis required by the State, and recommended
that the application be put "on hold" pending the outcome of the LUBA process.
John Hyland, 89006 Whitewater Road, Springfield, endorsed the master plan application and
asked the council to help PeaceHealth relocate to Springfield as soon as possible. He said that
PeaceHealth should receive the 33 acres ofMUC zoning it requested. If others wished to secure
such zoning, they should do as PeaceHealth had done and put up money for transportation
improvements. He said that he had built the parking structures at the Eugene PeaceHealth
campus when PeaceHealth had determined there was a need for them. He supported
PeaceHealth's position on the issue. Mr. Hyland urged the council to work with PeaceHealth to
overcome development hurdles.
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Pam Basilius, 203 Deadmond Ferry Road, spoke about her concerns regarding the City's plans to
extend a road through her property. She said she had placed all her money into her home and
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now could not sell it and was concerned that she would be unable to purchase another. She
maintained that it would be unfair for the City to pay her fair market value for her home because
she believed that the land would eventually be redesignated to commercial use, thus increasing its
value. Ms. Basilius said she had been waiting for three months for an appraisal of her home
promised to her by the City, which she maintained the City had in hand, and had been treated by
disrespect by the City's legal staff. Ms. Basilius maintained that the City's goal was to take her
house as cheaply as possible regardless ofthe consequences to her family. She suggested that
instead, the proposed road run across PeaceHealth's property.
John Brown, a Eugene real estate appraiser, spoke to the condition calling for a parking structure
prior to occupancy of the hospital. He said that regardless of when PeaceHealth built the parking
structure, it would not be financially feasible. He noted that the parking structures that
PeaceHealth currently owned operated at a large deficit. He said that PeaceHealth needed to be
competitive in the market place, and none of its competitors will have to build a parking structure.
Mr. Brown did not recommend that the parking structure not be built, but suggested that the
requirement be contingent upon some threshold, such as a minimum square footage for the
medical office building.
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Speaking to Condition 11.5 regarding the assignment of the MUC zoning, Mr. Brown believed
that there would be demand for more than 33 acres ofMUC. He suggested that more land in the
vicinity be rezoned to MUC, pointing out that did not mean it would be developed. He suggested
that MUC acreage on PeaceHealth property not be restricted given its relationship to the financial
viability of the development. Mr. Brown pointed out the impact of the nodal development
overlay was not known. He asked what Springfield would do if it had ten property owners vying
for the zoning in question, rather than one willing can capable of going forward. He suggested
that the council give consideration to "who's at the table, and what they're willing to do."
Darlene Colburn, 3361 Baldy View Lane, Springfield, a resident of the Game Farm
Neighborhood, spoke in favor of the master plan application. She said that in addition to building
a state-of-the-art medical facility, PeaceHealth would be contributing funding to much-needed
transportation improvements. PeaceHealth would also provide public access to the river. She
asked the council to approve the project, which she termed a "win-win" situation for the
community and PeaceHealth.
Steve Korth, Eugene, voiced his support for the master plan application. He said that
PeaceHealth would provide quality medical care for the community. Noting he was a member of
the development community, Mr. Korth suggested there were three key elements necessary for
such a project: flexibility, zoning, and timing. He said there was no comparison between the MS
and MUC zoning and agreed with Mr. Brown that the impacts of the nodal overlay were
unknown. He said that the flexibility needed to react to commercial demands and opportunities
would be more easily addressed by the application of the MUC zoning.
Regarding trip vesting, Mr. Korth emphasized the importance of a level of certainty that the rules
would not change as the project moved forward.
Mr. Korth said that timing was critical, particularly when dealing with construction costs. Any
delay could "kill" a project because rising costs could make a project financially infeasible. He
commended staff for its work with PeaceHealth.
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Bill Morrisette, 248 G Street, Springfield, said the hospital should not be located in the Gateway
Refinement Plan area. It was "much too large." The transportation system would not be
sufficient to serve the development at full build-out. He said if the hospital was to be built, a
nodal development overlay was essential. Mr. Morrisette said the hospital preferred to control all
the commercial property in the area, and he did not think that was in the best interest of the City
or the community.
Mr. Morrisette said that the Goal 12 issues remanded by the State must be addressed. He thought
that legislation to change the process was needed so that a site plan was required before the
needed plan amendments were granted.
Mr. Morrisette asserted that the hospital's doctors and management staff would not live in the
nearby medium-density housing and regretted the lack of more expensive, less dense housing that
might attract those individuals. He urged the council to go slow and asked that it not be "caught
up in the excitement of the moment." He said that once approved, the approval could not be
undone, and there were consequences to not doing the project right.
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Tim Beckett, 261 Deadmond Ferry Road, recognized the benefit of Peace Health to the
community and welcomed the new residents that move into the area. However, he asked the
council to be careful about how those new residents affected the existing residents who happened
to be in the path of development. Mr. Beckett said he had recently learned a road project
affecting his property was planned, which was a surprise. He said that City's plans to buy his
property at residential rates precluded his ability to realize the fiscal benefits he might otherwise
realize if the land was zoned commercially, as he expected it would be eventually. Mr. Beckett
feared he would lose the benefit of his property to developers who were not residents but who
bought all property around his house. He said that residents were looking to the City Council to
look out for their best interests.
Shawn Hyland was not available when called to speak.
John English, 1620 High Street, Springfield, said it should be illegal to build a hospital on an
active earthquake fault, which he averred was the case in this situation. He asked what had been
done to address the situation. He anticipated that regular earthquakes of 8 or 9.5 would occur in
the future, and when that occurred, the community would need a hospital. Mr. English said it
bordered on criminal to build a hospital on a fault line. If a dam failed, there would be debris and
walls of water coming down the river. He asked if that had been considered in the hospital's
planning. Mr. English said he asked several University of Oregon professors to testify about the
topic and in return received a cynical response suggesting that the decision about the project was
already made.
Justin Wright, 722 Country Club Road, Arlie & Company, opposed the allocation of 33 acres of
MUC zoning to PeaceHealth. He said that some of the MUC zoning should be reserved for Arlie
& Company and others. He maintained that the annexation agreement between Arlie & Company
and Springfield included an agreement that the Arlie property would be developed with intensive
commercial uses, such as a mixed-use nodal village. He called that agreement the "quid pro quo"
for the $750,000 in annexation fees Arlie would be obligated to pay the City. Mr. Wright asked
the council to support the Planning Commission's recommendation for the allocation of the MUC
zoning, and asked that 12.4 acres of Arlie property be assigned MUC zoning. .
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Mr. Wright asserted that it was unfair that PeaceHealth should consume all the traffic capacity in
the vicinity, forcing capacity improvements on other developments in the area. He said that all
developments should pay their fair share. He asked that the council's decision provide for more
transportation planning encompassing the Arlie property, PeaceHealth property, and other nearby
properties.
Mr. Wright reported that Arlie & Company and PeaceHealth had discussed a land exchange to
facilitate needed transportation improvements at the RiverBend campus. The company was
prepared to enter into an agreement with PeaceHealth to that affect. He asked the council to
review the materials submitted by Arlie & Company to the Planning Commission.
Anne Heinsoo, 35 Lorie Court, expressed dismay at the traffic and noise that would affect her
secluded residential neighborhood if a hospital was built at the Gateway MDR site. She pointed
out that residents had worked for years to get a stoplight at the exit of Wayside Lane onto Hayden
Bridge Way, and now staffwas proposing to close the exit, replace it with a complicated loop
street, and force residents to exit onto a different street. Ms. Heinsoo noted that the hospital was
proposed to be built on elevated land and questioned if, during a flood event, water that would
have formerly entered the PeaceHealth property would now flood the property of nearby
residents. Ms. Heinsoo concluded by expressing her dismay that the Springfield Planning
Commission and Planning staff were willing to work with PeaceHealth as she did not believe it
belonged to the community and objected to what she termed its unethical competition with
McKenzie Willamette Hospital.
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Dr. Jim Walker, 4450 Pine Crest Drive, Eugene, a member ofthe PeaceHealth Board of
Directors, said he had been involved in planning for the regional medical center for five years.
He asked the council to approve the master plan application.
Speaking to the issue of the MUC zoning, Dr. Walker discussed facility design as it related to
medical technology. He said that PeaceHealth planned a regional medical center that would
incorporate other medical institutes and other nonhospita1 facilities. PeaceHealth had studied
health technology forecast reports and studied trends facing tertiary care centers. Dr. Walker said
PeaceHealth had developed 5 to 50-year projections to be accommodated in the center. Many of
the technologies would be applied to an increasingly large population of outpatients. The board
realized those emerging technologies and medical specialty care would require broad flexibility in
the design and use of the property. Dr. Walker said one of Peace Health's goals was attract
physician groups, and the biggest attraction would be what PeaceHealth offered in the way of
office space and related services. He said that commercial zoning was as important as the nearby
residential property, which would serve both employees and patients who needed to live near the
hospital.
. Susan Ban, 2125 Nirvana Street, Eugene, the Director of Shelter Care, asked the council to
approve the master plan application. She said that local access to state of the art health care and
to health care options was critical. It helped local service providers such as her organization to do
their work. She advocated for flexibility in terms of time and regulatory requirements, continued
cooperation between the Planning staff and PeaceHealth staff. and recognition of the significance
of the project to the entire region.
Mayor Leiken called for a ten-minute break. Following the break, Mayor Leiken resumed
testimony.
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Dan Egan, 850 North 6th Street, Springfield, executive director of the Springfield Chamber of
Commerce, said the chamber frequently advocated for business to locate in Springfield, which
had the reputation of getting to yes. That was not always easy, but it was his experience that City
staff worked with businesses to overcome problems. He said that much progress had been made
on the project, and he urged the council to remember Springfield's reputation for getting to yes.
Mr. Egan believed Springfield had models that worked in the past that it could employ in this
instance, such as trigger points. He supported a trigger point for the construction of the proposed
parking structure. Regarding the transportation improvements costs being borne by PeaceHealth
and the vesting of trips, he urged that the issue be worked through now as he believed it would
come up again in the future. Mr. Egan pointed out that another hospital could potentially be sited
in Springfield, and he believed it would need similar consideration. Regarding the allocation of
zoning, he suggested allowing everyone who owned property in the area to seek commercial
zoning might be an answer to the allocation ofthe MUC zoning. Regarding the application of the
nodal development overlay, Mr. Egan suggested that the hospital proposal was as close as
Springfield would get to nodal development in the near-term, and he wanted it to work.
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Jeff Sackett, Capstone Partners, 1013 NW 11 th Avenue, Portland, representing PeaceHealth,
spoke to the applicant's request for MUC zoning. He said that developers value flexibility and
certainty. Mr. Sackett said that the application ofMS zoning rather than MUC zoning reduced
PeaceHealth's flexibility to use its property. He noted that there were 131 permitted uses in the
MUC zone and 13 permitted uses in the MS zone. He said that the timing of the nodal
development overlay application was uncertain, and that uncertainty was not good for
PeaceHealth. Mr. Sackett believed the application ofMS zoning also reduced the value of the
property in question. Regarding the trip cap, Mr. Sackett spoke of his experience with Cascade
Station in Portland, which had some resemblance to this application. He said the core of the issue
was that traffic controls density. He said that his fIrm had projected out all the traffic to be
generated by all uses over the next 20 years and backed into the available density that was left for
the development and used that to define the use mix and limit the density.
John Olm, 226 Ridgeway Drive, Eugene, a real estate professional, supported the master plan
application. He called for resolution of the issues that now threatened to derail the project. He
saw no reason that staff could not argue that more than 33 acres of commercial zoning was
needed to support the scope of the project. He believed he could argue with conviction that more
than 45 acres of commercial zoning were needed to accommodate the project and the changes
that he anticipated would occur in the hospital industry.
Speaking to the issue of nodal development, Mr. Olm said that concept had been around for many
years, but he believed that nodal meant "no development." He said there were some good aspects
to the concept, but the "devil was in the details." Mr. Olm questioned whether PeaceHealth had
time to wait for those details to be resolved. So far, there had been no nodal development in the
community.
Speaking to the issue of the parking structure, he acknowledged the concern expressed about the
"sea of asphalt" created by surface parking, but contrasted the proposed parking to the parking
provided at the Gateway Mall and suggested that truly was a sea of parking. He did not think one
would even see asphalt at the hospital. Addressing the issue of the vested trips, Mr. OIm
suggested that given the amount of money that PeaceHealth planned to invest in street
improvements, there must be some equity. He pointed out that PeaceHealth had spent
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considerable money developing its traffic analysis, and it would be unfair for someone else to
come along and generate traffic that exceeded those trips.
Nathan Phillips, 30169 LaBlue Road, said he represented WNG Properties of Eugene, which
developed and managed medical and commercial office buildings. He offered his perspective on
how the project could be planned to meet the objectives of his investors and clients. He said
master plan as presented would create an exciting new urban neighborhood with attractive
development opportunities for the type of building his fIrm constructed. However, Mr. Phillips
was concerned about the application of MS zoning with the nodal development overlay to the
site. He said it was his experience that related businesses have a strong interest in locating near
medical services, often in the same building. Mr. Phillips asked if those uses would be permitted
in the MS zone. He suggested such uncertainty reduced the value of the property and was
contrary to the goal of reduced vehicle miles traveled. He said it was difficult to attract investors
where there was uncertainty about use.
Mr. Phillips also questioned the application ofthe nodal overlay to regional health care facilities,
particularly when the details of the overlay were still being worked out. He said that his clients
serve the ill and elderly and he did not think it was realistic to expect those patients to use transit
or to walk to get to the hospital. It would be difficult to attract tenants and investors where access
was severely or inappropriately impeded. Mr. Phillips said his fIrm supported the goals of nodal
development, but believed the overlay was not appropriate for a regional medical office facility or
medical offices in general. He thought the MUC designation would promote the clustering of
uses and reduce auto dependency more effectively than the MS zone with the overlay. His
company looked for sites that were clearly zoned as they offer most flexibility and least
uncertainty for clients.
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Tom Boyatt, representing the Oregon Department of Transportation (ODOT), 644 A Street,
informed the council that ODOT supported Condition 31, which described the trip monitoring
plan. He said that which ever zoning the council chose, the City should avoid double-counting
trips. Mr. Boyatt said future developments must go through the plan amendments process and
State Goal 12 analysis, and proper mitigation would follow. Speaking to the condition for a post-
acknowledgement plan amendment, Mr. Boyatt said that the required transportation
improvements at Highway 126 and the Pioneer Parkway must be constructed by the time the
hospital opened. He noted that partial design drawings had been submitted to ODOT by
PeaceHealth, and things looked good at this point.
AI Johnson, 2903 Grant Street, Portland, identifIed himself as legal counsel representing John
and Robin Jacqua. He noted the submission of aerial photographs of the Jacqua property, which
demonstrated the location of the Jacqua property in relationship to the hospital.
Mr. Johnson discussed the Jacquas' concerns about the impacts of the PeaceHealth development.
He said that the Jacquas share the vision expressed by representatives of Peace Health and were
long-time supporters of the hospital. However, the Jacquas believe that such facilities should be
located in the places set aside for such uses, that is, in their current locations or possibly
Glenwood, not in a residential area in north Springfield. He said PeaceHealth chose to locate on
a site that was not planned or zoned for that use, resulting in the delays in construction. He said
that additional problems were created by PeaceHealth's attempt to jumpstart the permitting
process to overcome those delays.
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Mr. Johnson suggested the council had no choice but to await the results of the LUBA appeal or
deny the application. He asserted that when LUBA remanded a decision, the remanded
ordinances cease to be effective. The plan amendments were not yet acknowledged because the
appeals process not completed. Mr. Johnson maintained that the council had to consider the
application using the unamended plans and the old McKenzie CDP. He distributed copies of
written testimony from himself and the Jacquas. He anticipated appeals of the LUBA decision
and a decision within two to three months.
Darren Hayes, 650 Harlow Road, Springfield, indicated support for planned and managed
growth and mitigation of the impacts of growth. He asked that the council ensure that the project
place no undue burden be placed on existing residents or the existing infrastructure. Mr. Hayes
had mixed feelings about the development. He thought the staff and commission could have
invested extra time to analyze neighborhood concerns about traffic. Mr. Hayes thought
temporary mitigation of the anticipated impacts was very important to him, but he did not think
any plans had been presented on how egress and access would be managed. He thought there
would be a major impact to Game Farm Road, which currently lacked shoulders, and did not
think the issue had been addressed. Local arterials already carried considerable traffic, and he
thought additional growth would worsen traffic situations, even without PeaceHealth. Adding
PeaceHealth to the traffic load required more thorough discussion. The current road system was
both under-funded and under-managed. Mr. Hayes anticipated major traffic issues on small
streets coming into the area.
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Jim Conant, 209 Deadmond Ferry Road, Springfield, said his residence would be affected by the
proposed roadway system. That was very stressful to him as he had lived in the area for 35 years.
He urged the council to consider all the ramifications of the issue and suggested that the road
could be shifted to spare the three houses that would otherwise be impacted.
Kevin Matthews, 120 West Broadway, Eugene, representing the Friends of Eugene, questioned
how the council could go forward given the LUBA remand of the plan amendments. He said that
his organization, as a "citizen watchdog" group, would file an appeal of the council's decision if
the rules were not followed. Mr. Matthews averred that the application was driven by real estate
and money, and maintained that "ordinary" citizens were being "bulldozed" by PeaceHealth. He
said PeaceHealth first acquire land that was less expensive because it was not zoned for a
hospital, and then "successfully applied political pressure" to get the zoning changed so the
values of the property went up, and "a lot of money gets made" from the ancillary development,
which he objected to. Mr. Matthews said that if plans were to be changed, they should be
changed by the appropriate process.
Jo Conant, 209 Deadmond Ferry Road, Springfield, provided the council with a map of the area
in question. She was also concerned about the impact of the hospital development on her house.
She described the development and construction of her house and spoke of the importance of her
house to her family at a time of grief and loss. Ms. Conant said her home and property could not
be replaced at fair market value, and because her property was located in the county so she was
not represented on the council. She said she could not financially afford to fight the City. Ms.
Conant believed PeaeoHoalth the three developers owned sufficient undeveloped property to
accommodate the road without affecting existing residents. She asked that the road be redesigned
and routed to the east. She called the plan unnecessary and brutal and said it would threaten the
retirement security her family worked hard to achieve,
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Bill Carpenter, 680 T Street, a member of the Springfield Planning Commission, advocated for a
height limit on the hospital, which he maintained could be achieved by increasing the square
footage for each floor. He thought it would help achieve a lower height and increase safety.
Regarding the parking structure, he said that the commission was concerned about the potential of
a "sea of parking" on the site. He said that PeaceHealth discussed creating an atmosphere of
healing he believed patients would be viewing that sea of parking. Speaking to the commission's
recommendation for zoning, he said the plan amendments stipulated only 33 acres ofMUC
zoning were available, and the commission did not want to give up all 33 acres in one application,
requiring further master plan amendments.
Jim Hanks, 4765 Village Plaza Loop, Eugene, JRH Traffic Engineering, said that the project met
all TransPlan requirements. He said that some appeared to think that PeaceHealth took all
available trips and matched the development to the capacity, but the opposite was true.
PeaceHealth determined the size of the development, how many trips it would generate, and
determined that even in the out years, there was available capacity for more development. It was
important for PeaceHealth to have the trips vested, as it met that those trips must be taken into
account by the City when other development applications were submitted.
Regarding the north street connection that would potentially affect existing residences, Mr. Hanks
said that PeaceHealth did not have a position on the road. The connection was not necessary for
the purposes of the hospital, but the annexation agreement required PeaceHealth to pay for it. He
noted that the connection was called for in City plans before PeaceHealth had contemplated a
hospital in this area.
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Jan Wilson, PO Box 70753, Eugene, represented the Coalition for Health Options in Central
Eugene-Springfield (CHOICES). She submitted the testimony she had prepared for the Planning
Commission, which she believed was still applicable. She reiterated her continuing objections to
the proposal. She maintained there was an inadequate opportunity for adequate public review
because the plan amendments process was not final. She said that Oregon law required citizens
to base their objections on the record, but that could not be done if the process was not completed.
Ms. Wilson said the City was no further along in its nodal development planning and did not
think the project constituted nodal development. CHOICES had concerns about the tree removal
on the site, the surface parking proposed, the fill that would occur, and believed the proposed
residential development would not occur. She noted that the conditions related to those issues
were those that PeaceHealth most objected to. She objected to the size of the development,
maintaining that "everything was too big."
Ms. Wilson asserted that PeaceHealth had promised to provide the commission with alternative
massing scenarios and that the Planning Commission did not recommend a height limit because
commissioners said "what's the use? The City Council's going to rubber-stamp it, so why even
bother?" She said her organization wanted to massing scenarios and alternatives but never got
them. Ms. Wilson objected to the animated flyby, saying the lobby looked like a "Rocky
Mountain ski lodge" and showed no patients. She objected to the size of the facility and the
amount of parking being proposed. Ms. Wilson asked the council to deny the application, to
direct staff to complete the implementation of nodal development, and direct legal counsel to
finish the plan amendments process before the master plan application was considered.
Mr. Stephens reviewed the schedule for acceptance of written testimony.
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Ms. Fitch, seconded by Mr. Ralston, moved to adopt the revised
schedule. The motion passed unanimously, 5:0.
Ms. Pappas entered two items into the public record, correspondence from Tom Bowerman, 337
McKenzie View, Eugene, OR and correspondence from Bonnie Ullman ofthe Game Farm
Neighbors, Oriole Road, Springfield, OR.
Mr. Malloy returned to the dais.
BUSINESS FROM THE AUDIENCE
There was none.
COUNCIL RESPONSE
There was none.
CORRESPONDENCE AND PETITIONS
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Ms. Fitch, seconded by Ms. Ballew, moved to accept the items
for filing and/or provide staff direction/follow-up. The motion
passed unanimously, 6:0.
BIDS
ORDINANCES
BUSINESS FROM THE CITY COUNCIL
1. Committee Appointments
There were no appointments.
2. Business From the Council
a. Committee Appointments
There were none.
b. Other Business
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Ms. Lundberg announced that Willamalane Parks and Recreation District would hold an open
house at 5 p.m. on January 28, 2004, at the Memorial Building for residents to offer comments on
the district's comprehensive plan.
BUSINESS FROM THE CITY MANAGER
City Manager Kelly had no business.
BUSINESS FROM THE CITY ATTORNEY
There was none.
ADJOURNMENT
Mayor Leiken adjourned the Regular Meeting at 9:30 p.m.
Minutes Recorder - Kim Young
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Attest:
Am~~
City Recorder
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