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City Manager's Office <br /> City of Eugene <br /> 777 Pearl Street Room 105 <br /> MEMORANDUM Eugene, Oregon 97401 -2793 <br /> (541) 682 -5010 <br /> (541) 682 -5414 FAX <br /> www.eugene - or.gov <br /> Date: March 27, 2008 <br /> To: Mayor Piercy and Eugene City Council <br /> From: Angel L. Jones, City Manager ProTem <br /> Subject: Acquisition of 200 -acre Parcel in Lane Community College Basin <br /> City staff is engaged in negotiations to acquire a 200 -acre parcel from Arlie & Company in the vicinity of <br /> Lane Community College that would become a significant addition to the identified Ridgeline Trail <br /> Corridor. Based upon a formal appraisal, the property's market value is $15,000 per acre or a total <br /> appraised value of $3 million. The owners have offered to donate 20% of the appraised value ($600,000) <br /> resulting in a purchase price to the City of $2.4 million. These terms are outlined in the attached offer <br /> letter from the owners, and the parcel location is as indicated on the attached map. <br /> This property meets all of the criteria for acquisition of Ridgeline Trail properties: it lies along the <br /> proposed trail corridor; it is identified for acquisition in the 2006 PROS bond information; it is available <br /> at a discount from a willing seller; and its appraised value is in line with historic open space acquisition <br /> values. The property extends along the ridgeline from City -owned Mt. Baldy to the southeast corner of <br /> Lane Community College, and consists of a mix of Douglas fir forest and high quality oak woodland <br /> habitat. This acquisition has the potential to extend the length of the trail by a minimum of two miles and <br /> to offer views of Mt. Pisgah, Spencer Butte, and the surrounding areas. <br /> Spending authority is available within the current budget to complete the purchase. The estimated fund <br /> split likely comprises about $2 million from the 2006 PROS bond and $400,000 from Parks SDC's. <br /> Presently, a balance of about $5 million in bond proceeds is available for this and similar open space <br /> acquisitions. Grant opportunities are limited due to timing restrictions put on this transaction by the seller. <br /> The offer letter suggests a March 20 response deadline; nonetheless, given the substantial public <br /> discussion of the allocation of bond proceeds, we have advised the owners that we would notify the <br /> Council of our intent to pursue the acquisition prior to executing the purchase agreement. Accordingly, <br /> we expect to enter into the formal agreement within the next several days. In my opinion, the purchase of <br /> this property is in complete compliance with Council direction. <br /> Please contact me for any additional information. <br /> Attachments: <br /> March 6, 2008 letter from Arlie & Company <br /> Parcel map <br />