HomeMy WebLinkAbout03/11/2002 Regular
r;
','
i
.
MINUTES OF THE REGULAR SESSION MEETING
OF THE SPRINGFIELD CITY COUNCIL
HELD ON MONDAY, MARCH 11, 2002
The Springfield City Council met in Regular Session on Monday, March 11,2002 at Springfield
City Hall, 225 Fifth Street, Springfield, Council Meeting Room, at 7:40 p.m., with Mayor Leiken
presiding.
~
ATTENDANCE
Present were Mayor Leiken, and Councilors Ballew, Fitch, Hatfield, Lundberg, Ralston, and
Simmons. Also present were City Manager Mike Kelly, Assistant City Manager Gino Grimaldi,
. City Attorney Joe Leahy, City Recorder Kim Krebs, Police Chief Jerry Smith, and members of
staff.
PLEDGE OF ALLEGIANCE
Mayor Leiken led the Pledge of Allegiance.
SPRINGFIELD UPBEAT
CONSENT CALENDAR
Councilor Fitch asked to remove item number 5-a from the Consent Calendar.
.
IT WAS MOVED BY COUNCILOR HATFIELD WITH A SECOND BY COUNCILOR
FITCH TO ADOPT THE CONSENT CALENDAR WITH THE EXCEPTION OF ITEM 5-
,A. THE MOTION PASSED WITH A VOTE OF 6 IN FAVOR AND 0 AGAINST.
1. Claims
2. Minutes
3. Resolutions
4. Ordinances
5. Other Routine Matters
a. Approval of the Assignment of the Loan Agreement and interim financing of $275,000
with Springfield Community Development Corporation for new construction of ten
affordable units in the Fair Haven Subdivision.
b. Authorize the Mayor ofthe City of Springfield to execute the Coverage Agreement and
Integration Contract between the City of Springfield and Public Employees Retirement
System (PERS).
ITEMS REMOVED FROM THE CONSENT CALENDAR
8
Mayor Leiken declared a conflict of interest on item 5-a and removed himself from the
discussion.
, Springfield City Council
Regular Session Minutes - March 11, 2002
Page - 2
o
Councilor Fitch said she and Councilor Lundberg had a few questions related to this item and
asked that staff come forward.
Councilor Lundberg said she would like to clarify the amount of the interim financing, and also
questioned the letter from St. Vincent DePaul Society (Attachment 2-4) of the Agenda Item
Summary. She said it indicates that they will be receiving a letter of commitment from Key
Bank.
Housing Programs Assistant Jodi Peterson was present for the staff report on item 5-a. She said
the interim loan that is in question is in lieu of a construction loan through a bank for St. Vincent
DePaul. She said it would allow them to do more with the construction funds because they would
not be paying loan or interest fees. She said the backup or commitment letter from Key Bank
would be sent to staff on March 12, 2002. She said th~ purpose of that letter is in the event the
City needs to call that loan and collect the funds for other projects.
Councilor Fitch asked as they build and sell the houses will that money then go back into building
the balance of the houses and is that part of the contract? '
Ms. Peterson said they will eventually obtain permanent financing for the properties, and will
then pay the City back. She said it is an interim loan or a bridge for them to secure permanent
financing.
Councilor Simmons asked if the Key Bank letter that is being provided is similar to that of a
guarantor, with a time specific, and if not, how will it be constructed?
.
Amanda Saul, Development Director from St. Vincent DePaul Society was present and said the
letter works as a backup letter of credit, or a land line of credit. She said if the City of Springfield
has to call their funds, Key Bank has guaranteed that they will step in and repay that money and
they will then take a lien position on the land.
City Attorney Joe Leahy referred to Attachment 1 page 2 paragraphs 4 and 5, and said it makes it
clear that the responsibilities of the CDC are passed on to St. Vincent DePaul. He said it is very
clear that they are stepping into responsibility of the CDC, and have to perform.
Councilor Fitch said she appreciates the fact that St. Vincent DePaul has stepped forward to do
this project, and it is vital that this project go forward.
IT WAS MOVED BY COUNCILOR FITCH, WITH A SECOND BY COUNCILOR
LUNDBERG TO APPROVE ITEM 5-A OF THE CONSENT CALENDAR. THE
MOTION PASSED WITH A VOTE OF 6 IN FAVOR AND 0 AGAINST AND 1 ABSTAIN
(LEIKEN).
PUBLIC HEARINGS -
1. Public Hearing Regarding Possible Written Offers to Purchase 22 Acres of the City-Owned
Sports Center Property.
o
John Tamulonis was present for the staff report on this item. He said the City has received two
written offers to purchase the southern 22 acres of the 40-acre Sports Center site in the Gateway
area. Arlie & Company's written offer of $5.35 million made on December 5,2001, with
Springfield City Council
Regular Session Minutes - March 11,2002
Page - 3
.
conditions, including a required rezoning to Campus Industrial (CI), was withdrawn. The second
offer made January 28,2002 from Pudding Creek Land Company to purchase for $5.4 million,
with conditions, including required rezoning, remains in place.
Mr. Tamulonis said council directed staff to seek additional proposals that provided more cash to
the city prior to rezoning, since the 6 acres zoned Community Commercial and the 16 acres zoned
Public Land and Open Space have substantial value with the current zoning designations. He said
the Request for Proposal (RFP) Attachment 2 to the Agenda Item Summary (ATS) was distributed
to several local development organizations with the potential to purchase and develop the Sports
Center property for CI uses. He said the RFP asks for an initial payment of $3.2 million for the
property "as is" and another payment for a total of at least $5.4 million once the 22 acres is zoned
CI.
Mr. Tamulonis said there has been one additional response since the staff report was prepared,
and understands that response was delivered to council on Friday, May 8th. He said this new
response is from the Carolyn S. Chambers Trust. The proposal is for $3.225 million cash as is
with the current zoning, with an additional payment that would bring the total to $5.4 million
dollars for the entire parcel once the rezoning took place.
Mr. Tamulonis said staff is proposing several steps to be taken and has presented those steps for
council consideration. They are 1) conduct the public hearing as required before the council
considers potential sale of the 22 acres; 2) if needed, council could recess into executive session
to consider this offer, or any other offers that have been presented; and 3) perhaps reconvene the
regular session and provide staff direction regarding the proposals.
.
Mr. Leahy said ifthe City Council is going to consider any offers in Executive Session, those
offers should have been presented by now in order to allow the Public an opportunity to comment
before the City Council considers them.
Councilor Hatfield asked if any Councilor received any offers other than the offer before them
tonight.
The Council responded no.
Mayor Leiken opened the public hearing.
1. Dan Egan, 850 N. 6th Street, Springfield, Spoke in support of this project moving forward.
He said the Chamber Board has not had an opportunity to discuss this issue, however he as a
citizen is very supportive. He said the City of Springfield is changing rapidly, and the need
for Springfield to offer a high quality of life for its citizens is all a part of community. He
said it is time to take this opportunity and proceed, as this would indeed be the fate of the
Sports Center or Complex. He concluded by saying that Springfield has a culture of rolling
up its sleeves and getting things done, and encouraged the City Council to act on this
opportunity.
.
2. John Crane, 2268 Lassiter, Eugene, Represents Kidsports, and spoke in support of the sale of
the Sports Center Property. He said having a regional sports facility in mid Springfield will
help bring traffic through the downtown area, but the most important part of this project will
provide the youth of this community the opportunity to have access for positive interaction
Springfield City Council
Regular Session Minutes - March II, 2002
Page - 4
.
and recreation. He encouraged the City Council to take the opportunity now and vote to
approve this offer.
3. Bob Keefer, 200 So. Mill Street, Springfield, Superintendent ofWillamalane Parks and
Recreation District. He spoke in support of the proposed offer and sale of the Gateway
property for the purposes of having the funds to develop a new facility at 32nd and Main
Streets. He said with the ,sale of the 22 acres, 18 acres will remain that are prime natural
resource properties and open space that will always be there for this community. He said
there would be 19 acres of acreage in mid Springfield that is adjacent to a middle school that
has property that leads to the Mill Race. He said this provides a great opportunity for
Springfield. He thanked the City Council for the opportunity to once again partner with the
City of Springfield, as he enjoys working with the staff and looks forward to many other
projects in the future.
o
4. Lauri Segal. 120 West Broadway, Eugene, Represents 1000 Friends of Oregon. She spoke in
opposition of the proposed offer and sale. She said there is still a need for the costlbenefit
analysis that really speaks to the proposal's merits or lack of merits, from both a fiscal and
community development perspective. She said the issue is broader than just the value of the
parcel. She said a thorough evaluation of any proposal to sell, trade, rezone, or otherwise
impact the allowable uses of land parcels should account for a wide range of considerations
other than merely potential family wage jobs. Traffic impacts, wellhead protections, and
livable neighborhoods are examples of other important considerations. She said the actions
leading up to bringing the sports way parcel into the UGB were not financial gain driven, but
rather a show of community support for a recreational facility meant to serve area youth and
their families, providing the impetus necessary to make a dream a reality. The driving force
behind the many contributions of time and money was that kids were being served. It would
be a breach of public trust to set this parcel up for conversion to special light industrial or
campus industrial zoning. Parkland and open space are valuable community commodities.
At the same time, this valuable resource cannot be created just anywhere. Open space
designations are usually made to protect resources from development pressures, or in some
cases to restore impacted resource areas. To rezone industrial parcels to accommodate park
and open space needs is an inappropriate action, and just does not make sense. She urged
council to retain the sports way site as parkland and open space for its intended use as a
recreational facility for youth and their families. Its uniqueness cannot be duplicated.
5. Senator Bill Morrisette, 348 G Street, Springfield, spoke in support of the proposed
development, for a number of reasons. He said this is the best choice, as the mid-Springfield
site will much better serve the youth of Springfield for many reasons. The traffic congestion
in the Gateway area is something that needs to be considered. The site would generate a very
large amount of traffic. Moving the Sports Center Complex to mid-Springfield will be an
immediate success as a regional sports center for many reasons already sited. He said it is an
ideal cooperative venture between Kidsports, Willamalane, City of Springfield, and
Broadbase. He said these four organizations could work closely and develop an outstanding
facility. He said he would like to pay tribute to his friend and colleague Roy Gray who has
dedicated his life for the welfare of kids, and is willing to put his own assets up as collateral
to see this venture through. He said Mike Kelly also deserves a tremendous amount of credit
for seeing this whole process through as he has been here from the beginning and has
dedicated city staff and resources to the success of this venture, and applauds him.
.
6. Greg Vick 2023 Kimberly Drive. Eugene, Spoke on behalf of Broadbase. He noted that
many members of the audience who were present have been involved in this venture for more
Springfield City Council
Regular Session Minutes - March 11, 2002
Page - 5
.
than 10 years, but so has the City of Springfield and City Councilors in terms of support. He
said he knows the council understands the importance of this venture, and are very close to
having it become a reality. He said there is a tremendous value for a project of this
magnitude, and urged the City Council to support this project, and thanked them for their
support.
Mayor Leiken closed the public hearing.
Mayor Leiken thanked Mike Kelly and his team for a tremendous job. He said to Mike's credit,
alternatives, ideas and options surfaced, and it brings us to where we are today. Partnering with
the other agencies is a very good idea and brings the council to this golden opportunity for this
community. He said he is happy to be the Mayor at this point in time to see this venture fmally
becoming a reality. He thanked Arlie & Company for stepping up and purchasing the property,
as well as donating the acreage needed for Broadbase to put the financing together. He knows the
youth of the community are saying thank you to all the players as well for making this possible.
Councilor Fitch asked with the acceptance of this offer is the city accepting the responsibility to
initiate the rezoning.
"
Mr. Leahy said yes, that is correct. The city is accepting the responsibility. He said all of the
discussions with the Chambers Trust have been very much in a partnership mode, they are very
excited about Springfield, and one of their motivations is to help the city in making this happen.
.
Councilor Hatfield asked the council if there was a need to go into an executive session for
further discussion, or can the issue be resolved in regular session.
Councilor Simmons said he believes it can be resolved in Regular Session. He said when the
agreement is constructed, it needs to have the dates outlined. It needs to be clear that if the
prospective purchaser is undertaking that agreement with the concept that fulfillment of the
rezoning is the ultimate goal, they would not impede it in any way. He said his concern is that if
the prospective purchaser would threw roadblocks into the process that there be no substantial
loss of net revenue to the city. He said it is important that the citizens received full value ofthe
property as it is rezoned, and have the full cooperation of the purchaser on the rezoning effort.
Mr. Leahy said there are two basic precepts in the contract that relate to what has been identified.
He said 1) the parties will deal in good faith; and 2) neither party to the contract will take any
action to deny the other party of the benefit of his or her bargain, and that will be written into the
contract. He said that is a fundamental tenant of the law.
Council consensus was they had no desire to adjourn into Executive Session for this discussion
and would dispose of the issue at this time.
.
Councilor Hatfield said he looks at this as a quintessential Springfield project. He talked about
the purpose of this project from the beginning, and cannot imagine the hours, and effort that has
gone into trying to make this happen. He said city staff has been a very important part of this as
well as prior councils in their support of the project. He said this benefits the citizens ofthis
community. He thanked Arlie & Company for their donation of property, and thanked the
Chambers Trust for stepping forward. He concluded by saying this is a fulfillment of trust, not a
breach of trust.
Springfield City Council
Regular Session Minutes - March 11, 2002
Page ~ 6
.
IT WAS MOVED BY COUNCILOR HATFIELD, WITH A SECOND BY COUNCILOR
FITCH TO ACCEPT THE OFFER FROM CHAMBERS TRUST FOR THE PURCHASE
OF THE 22 ACRES IN THE GATEWAY ACRE. THE MOTION PASSED WITH A
VOTE OF 6 IN FAVOR AND 0 AGAINST.
Mr. Leahy said that is subject to arriving at a contract iri alignment with the direction of
Councilor Simmons earlier.
Councilor Hatfield said yes that is correct.
BUSINESS FROM THE AUDIENCE
1. Larry Reed, Arlie and Company, 722 Country Club Road, Eugene. He said as the property
owner at 32nd and Main Street, and on behalf of Arlie & Company, John Musemeci, and
Susan Arlie he thanked the City Council for their kind words. He said later on the City
Manager would be seeking approval to do the metro plan and rezoning of the property at 32nd
and Main Street. He said for the record that request has Arlie & Company's full support, and
, will work with staff to do what is necessary in order to provide the city with a complete
application for all of those planning items.
COUNCIL RESPONSE
CORRESPONDENCE AND PETITIONS
.
IT WAS MOVED BY COUNCILOR HATFIELD WITH A SECOND BY COUNCILOR
FITCH TO ACCEPT THE TWO ITEMS OF CORRESPONDENCE SUBMITTED
EARLIER IN THE MEETING RELATED TO THE SALE AND REZONING OF THE
SPORTS WAY PROPERTY. THE MOTION PASSED WITH A VOTE OF 6 IN FAVOR
AND 0 AGAINST.
BIDS
ORDINANCES
BUSINESS FROM THE CITY COUNCIL
L Committee Appointments
2. Business from Council
a. Committee Reports
b. Other Business
1. Councilor Hatfield said in response to a memorandum council received from City
Attorney Joe Leahy, he would like to discuss the South 79th Street property owner's
request for extraterritorial water line extension. He said each of the councilors received
the memorandum from Mr. Leahy regarding a revised Declaration.
.
Mr. Leahy said he has met with staff and some ofthe neighbors, and said the Declaration
developed meets the needs of the citizens of Springfield. He said as stated, this
Springfield City Council
Regular Session Minutes - March 11,2002
Page - 7
.
information was made available to the City Council via a memorandum from the City
Attorney's office.
Councilor Hatfield said it does meet the council's needs to protect the citizens of
Springfield, and if the Council feels this matter can be disposed of tonight, he would like
to move forward.
Councilor Simmons asked if this Declaration would be recorded on the Deeds.
Mr. Leahy said yes it would be recorded, and the property owner or organization would
pay for the recording. He said he has not received any feedback, and asked Development
Services Director Cynthia Pappas if she had received any feedback on this issue.
Ms. Pappas said this item is scheduled to come back to the Council at the March 18, 2002
City Council Meeting, however if they chose to resolve it tonight that would be fine. She
said the Declaration does meet with everyone's approval and they are ready to take it
forward.
Councilor Lundberg thanked staff and the neighbors for stepping up and working hard
towards a resolution ofthis matter.
.
IT WAS MOVED BY COUNCILOR HATFIELD WITH A SECOND BY
COUNCILOR LUNDBERG, TO ACCEPT THE SOUTH 79TH STREET
PROPERTY OWNERS FOR EXTRATERRITORIAL WATER LINE
EXTENSION, AND THE DECLARATION TO BE RECORDED. THE MOTION
PASSED WITH A VOTE OF 6 IN FAVOR AND 0 AGAINST.
2. Councilor Lundberg said the LCOG Board met recently and the focus of that discussion
was around education and schools. She said this is an important discussion and
consideration because some of the rural communities are really struggling, and how they
see themselves and manage to survive, sometimes has to do with their economic place. It
is important to look beyond our civic responsibility. She said there would be further
discussions about this in the future.
3. Councilor Lundberg said Food for Lane County has secured a site at the Salvation Army
for the dinner's program. She thanked Arlie & Company for a donation of $10,500 that
allowed this program to go forward, and assistance in securing a permanent home for the
program. The location of the Salvation Army is at the corner of Centennial Blvd and Mill
Street.
4. Councilor Ralston said the Housing Policy Board and the Human Services Commission
have been meeting jointly and as the Council Liaison for both of these committees he is
representing both. He said in light of the downturn in the economy, there is a great
concern about the homeless issues. They have appointed a Homeless Prevention Task
Force. He said he attended the first meeting of the Task Force today, and he was
appointed Chair of that Committee.
.
5. Councilor Ballew said the Metro Wastewater Management Commission is currently
working on their budget process.
Springfield City Council
Regular Session Minutes - March 11, 2002
Page - 8
.
6. Councilor Hatfield said he and Mayor Leiken traveled to Washington, D.C. on the United
Front trip. He said it was a successful trip for Springfield, and thinks with a little more
effort he believes the full funding for the Springfield Station can be secured, as well as
funding for the restoration of the Mill Race.
7. Mayor Leiken said he agrees with Councilor Hatfield on the success of the trip.
8. Mayor Leiken said he was able to be involved in international relations on Sunday, March
10th, as he was invited to join Judge Michael Hogan in welcoming 5 Judges from the
Russian Federation.
BUSINESS FROM THE CITY MANAGER
1. Council Initiation of an Amendment to the Metropolitan Area General Plan Diagram, Gateway
Refinement Plan Diagram, and Concurrent Rezoning (Journal No. 2002-03-0062).
Planning Manager Greg Mott was present for the staff report. He said he would waive the
reading of the staff report. He said if the council takes the action this evening, it is tentatively
targeted for the June 4th for the Planning Commission Public Hearing.
.
IT WAS MOVED BY COUNCILOR HATFIELD, WITH A SECOND BYCOUNCILOR
FITCH TO APPROVE INITIATION OF A METROPOLITAN AREA GENERAL PLAN
DIAGRAM AMENDMENT TO REDESIGNATE TAX LOT 100, ASSESSOR'S MAP 17-
03-15-3, FROM COMMERCIAL TO CAMPUS INDUSTRIAL, AND REDESIGNATE A
PORTION OF TAX LOT 1000, ASSESSOR'S MAP 17-03-15, FROM PARK AND OPEN
SPACE TO CAMPUS INDUSTRIAL CONSISTENT WITH THE PROVISIONS FOR
SUCH AMENDMENT FOUND IN ARTICLE 7, SECTION 7.040 OF THE SPRINGFIELD
DEVELOPMENT CODE. IT IS UNDERSTOOD THAT THIS MOTION INCLUDES
THE INITIATION OF IDENTICAL AND CONCURRENT AMENDMENTS IN THE
GATEWAY REFINEMENT PLAN DIAGRAM AND ZONING DISTRICTS FOR THE
SAME PROPERTIES, AS SPECIFIED IN SECTION 7.110(4) OF THE SDC. THE
MOTION PASSED WITH A VOTE OF 6 IN FAVOR AND 0 AGAINST.
Councilor Simmons said with the provision that the natural area to the north identified by the
County Survey is protected.
2. Council Initiation of an Amendment to the Metropolitan Area General Plan Diagram, Mid-
Springfield Refinement Plan Diagram, and Concurrent Rezoning (Journal No. 2002-03-
0063).
Planning Manager Greg Mott was present for the staff report. He said he again would waive
the staff report, and said this will also be presented to the Planning Commission on June 4th.
.
IT WAS MOVED BY COUNCILOR HATFIELD WITH A SECOND BY COUNCILOR
FITCH TO APPROVE INITIATION OF A METROPOLITAN AREA GENERAL PLAN
DIAGRAM AMENDMENT TO REDESIGNATE TAX LOT 500, ASSESSOR'S MAP 17-
02-3, FROM LIGHT -MEDIUM AND HEAVY INDUSTRIAL TO COMMERCIAL AND
PARK AND OPEN SPACE CONSISTENT WITH THE PROVISIONS FOR SUCH
AMENDMENT FOUND IN ARTICLE 7, SECTION 7.040 OF THE SPRINGFIELD
DEVELOPMENT CODE. IT IS UNDERSTOOD THAT TillS MOTION INCLUDES
.
.
.
Springfield City Council
Regular Session Minutes - March 11, 2002
Page - 9
THE INITIATION OF IDENTICAL AND CONCURRENT AMENDMENTS TO THE
MID-SPRINGFIELD REFINEMENT PLAN DIAGRAM AND ZONING DISTRICTS FOR
THE SAME PROPERTIES, AS SPECIFIED IN SECTION 7.110(4) OF THE SDC. THE
MOTION PASSED WITH A VOTE OF 6 IN FAVOR AND 0 AGAINST.
3. Other Business
BUSINESS FROM THE CITY ATTORNEY
I. Councilor Hatfield asked before adjourning the meeting if council members thought there
was a need to go into Executive Session for discussion of the second topic on the agenda for
executive discussion.
Mr. Leahy said if council chooses riot to adjourn into Executive Session, staff will assume
that the document as corrected and provided to council with all the changes, subject to his
memorandum that we need to be certain that we follow the council's direction to obtain
adequate security of performance, will be taken care of. He said at that time staff will
provide that information to the council prior to the signing of the document.
Council Consensus was not to adjourn into Executive Session and agreed with Mr. Leahy's
comments.
ADJOURNMENT
The meeting was adjourned at 8:45 p.m.
Minutes Recorder - Kim Krebs
('