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irate MEMORANDUM October 19, 2010 TO: Johnny Medlin, Parks and Open Space Director Neil Bjorklund, Parks Planning Manager FROM: Teresa Bishow, Planning Director SUBJECT: CITY PURCHASE OF ARLIE & COMPANY LAND FOR PARK AND OPEN SPACE This memo responds to your request for clarification regarding: 1. What is the relationship between the City's purchase of additional land from Arlie & Company and the $600,000 donation? 2. What aspects of the Letter of Intent (L01) dated June 28, 2010 are negotiable and what changes would require approval by the U.S. Bankruptcy Judge? In 2008, when the City purchased 200 acres from Arlie & Company, we made a pledge to donate $600,000 within 60 days of the City staff's approval of a master plan for the property. The sale agreement stated the donation could be used for "any park - related purpose, such as land acquisition, natural resource restoration, or ridgeline trail design /construction within Eugene's park system." The determination of what park - related purposes would benefit from the donated funds was within the City's sole discretion, except that any use of funds not directly associated with the 200 acres was subject to Arlie's approval. Based on the significant financial contribution by Artie, upon receipt of the donation, the City agreed to name the segment of the Ridgeline Trail through the property the "Suzanne Arlie Ridgeline Trail Corridor ". In January 2010, Arlie & Company filed for financial reorganization under Chapter 11 of the U.S. Bankruptcy code. We believe we will emerge from the Chapter 11 process a stronger and more focused organization. When the City completed the master plan for the trail corridor in June, we wanted to fulfill our obligation to donate $600,000 for City park - related purposes but remained strapped for cash. The pending transaction began with an offer from Arlie & Company to: • Sell the City 330 acres south of the ridgeline trail corridor at a discounted price of $5,000 per acre (50% of the appraised value). E From the proceeds of the sale, Arlie & Company would immediately donate back to the City $600,000 for park-related purposes. • The $600,000 donation would no longer be limited to the Suzanne Arlie Ridgeline Trail Corridor and could be used for any City park-related purpose, including maintenance. • In recognition of the substantial financial donation, especially in this tough economy, and in honor of Suzanne Arlie's service to the community, the City would name the entire park land purchased from Arlie & Company the Suzanne Arlie Park. (The name "Suzanne Arlie Ridgeline Trail Corridor" in the original sale agreement would not be used. The City would retain the exclusive right to name specific trails or features within the park.)