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• <br /> DUNCAN & BROWN <br /> REAL ESTATE ANALYSTS <br /> JOHN H. BROWN, MAI <br /> ASSOCIATES <br /> t RICHARD J. DUNCAN, MAI February 21, 1995 ALAN THOMAS S. MORGAN <br /> CLARK <br /> DAN PUFFINBURGER, MAI <br /> KENT VORONAEFF <br /> DAVID L. CELLERS <br /> Jim Torrey <br /> Eugene City Council <br /> City Hall <br /> Eugene, Oregon <br /> Re: Bond Lane Park <br /> John Etter Letter <br /> 2/6/95 <br /> Dear Councilor Torrey: <br /> I am in receipt of Mr. Etter's response to my letter of January 3, 1995 relating to the proposed <br /> ground lease and swap of a portion of Bond Lane Park. I have subsequently spoken with Mr. <br /> Etter regarding this issue. I am still not satisfied that these proposals are in the best interest of <br /> either the City or the area residents. The following are concerns I still have regarding this <br /> proposal: <br /> 1. In regards to the economic aspects of the proposed lease /sale. Mr. Etter's letter does not <br /> address any of my concerns regarding the lease rate. As you are aware, land values in <br /> the Willakenzie area have rapidly increased. Please consider the following hypothetical <br /> situation: If a 10,000 square foot lot sells for say $30,000, this would indicate $3.00 per <br /> square foot. Three dollars per square foot times the approximate 31,200 square feet <br /> would result in a value in excess of $90,000 which, when compared to the proposed lease <br /> rate, results in a rate of return of 0.0052. If you were expanding Bond Lane Park and <br /> were to acquire these portions from the adjacent owners, this would be your minimum <br /> cost of acquisition. Why then would you sell for something less? What you are losing <br /> and what they are gaining are not the same. In addition, Mr. Etter indicated that the <br /> price was somewhat based on "the purchaser's ability to pay and their budget." He also <br /> indicated that he would no longer be required to "maintain this portion of the park and <br /> therefore he reduced the price so as to pass the savings on to the owner." This does not <br /> seem like good business practice to me. If it does result in a savings for the Parks <br /> Department, why would you pass the savings on to a consumer? Even if you <br /> consummate the lease, there is no time line in which to ensure that the property is <br /> eventually sold. These owners could go on in perpetuity in leasing this property with no <br /> requirement to ever purchase the property. <br /> 2. You are giving up almost an acre of land for the right to receive at $468 per year. What <br /> do you think you can buy for $468 per year in the Willakenzie area? I will guarantee <br /> you that it will be almost nothing due to the rapidly escalating prices. By selling /leasing <br /> 1260 CHARNELTON, EUGENE, OREGON 97401 (503) 687 - 1938/683-3400 <br /> FAX (503) 683 -0932 <br />