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Public Works <br /> Parks and Open Space Division <br /> City of Eugene <br /> 1820 Roosevelt Boulevard <br /> 1VIEMORANDUM Eugene, Oregon 97402 <br /> (541)682-4800 <br /> (541) 682-4882 FAX <br /> vwvw. c i. e u g e n e. o r. u s/parks <br /> Date: October 21, 2004 <br /> To: Mayor Torrey and City Council <br /> From: Johnny Medlin, 682-4930 <br /> Parks and Open Space Planning Manager <br /> Subject: COUNCIL ASSIGNMENT: STATUS REPORT ON CURRENT NEGOTIATIONS <br /> REGARDING 38-ACRE LAND ACQUISITION IN SOUTH HILLS <br /> City of Eugene Public Works staff have negotiated to acquire portions of a 90-plus-acre parcel on Dillard <br /> Road since summer 2000. Early negotiations, targeted to meet the needs of the Ridgeline Trail and <br /> Stormwater Corridor acquisition programs, resulted in a 54-acre acquisition in October 2001. <br /> Since October 2001, we have placed a high priority on acquiring an additiona18.5-10-acre portion which <br /> contained important Stormwater corridors. This acquisition was estimated to cost $150,000. In 2004 this <br /> acquisition strategy shifted to a possible purchase of the entire 39 acres remaining from the origina190- <br /> plus-acre parcel. This change iri strategy was based on a willing seller indicating a price of $300,000 <br /> might be acceptable. The proposed funding for this acquisition was through a combination of Stormwater <br /> (10-plus acres @ $150,000), Ridgeline Trail (10-plus acres @ $150,000) and property owner donation of <br /> the remaining 19-plus acres. <br /> Initially acquisition of this parcel had never been considered a high priority for the Ridgeline Trail <br /> Program since we already had a connecting corridor for the trail and this geographic area has a relatively <br /> high amount of city-owned natural area in comparison to other areas of the city. However, due to the <br /> <br /> ' high natural resource value of the property, it was deemed that up to $150,000 from the Ridgeline Trail <br /> .acquisition program could be reprioritized if purchase of 10 acres from this source would leverage the <br /> donation of the additional 19-plus acres. <br /> Our offer of $300,000 for 39 acres was accepted by the property owner in an e-mail on March 22, 2004 <br /> but later retracted on April 5, 2004. Our understanding was that this retraction was based on the property <br /> owner needing to honor a previous purchase agreement with another party. The property was <br /> subsequently sold `in May 2004 for $325,000 without further involvement of the City. Staff contacted the <br /> new owner in June 2004 to determine his willingness to continue negotiations with the city regarding this <br /> property. The response was a reluctant willingness to sell for $600,000 if the sale could close by October <br /> 1, 2004. Staff notified the property owner it would likely be impossible to meet this deadline but that a <br /> good faith effort to do so would be made in the hope the closing date might be extended. <br /> Since August, a number of efforts have been undertaken. First, City staff initiated the necessary <br /> engineering design and appraisal work. Simultaneously, we applied for a new matching grant opportunity <br /> from State Parks for $300,000. The City match consists of the $300,000 previously identified for this <br /> acquisition. In September, State Parks approved the funding request and drafted the State/City Grant <br /> Agreement. <br /> 4 <br /> <br />