Critics aim to halt downtown plans.

Byline: Edward Russo The Register-Guard

Eugene small-business owners and residents opposed to the city spending millions of dollars on downtown redevelopment launched an effort Tuesday to shut the public wallet.

Referendum organizers want voters to undo the City Council's Monday decision that could allow the city to spend up to $40 million downtown, including the possible redevelopment of West Broadway, between Willamette and Charnelton streets.

The referendum would have a dramatic effect on the city's downtown plans even before the possible vote by the public next year.

Referendum backers object to the city's plans for various reasons, including potential city subsidies for one of two Portland developers tentatively picked by the City Council to revitalize the two-block stretch.

"No one has guaranteed my profits or been willing to subsidize my expenses and business additions," said Gavin McComas, owner of Sundance Natural Foods in south Eugene and a critic of spending public money on the downtown project.

The City Council last May tentatively selected KWG Development Partners and Beam Development, both of Portland, to renovate West Broadway.

A majority of the City Council on Monday voted to give the city the ability to spend up to $40 million downtown so the city can play a role in redevelopment, perhaps by buying land and buildings, building parking garages, moving utility lines and doing other work related to West Broadway projects by Beam and KWG.

KWG, which city officials estimate might seek a subsidy from the city of $25 million, wants to develop most of the area, possibly with condos, apartments, restaurants, stores and a multiscreen movie theater.

Beam's concept isn't as ambitious and it's less costly: renovating the Centre Court building at Willamette and Broadway, constructing a building on the adjacent excavated pit, and renovating the Washburne building next door.

Redevelopment supporters say the repeal effort could throttle both projects even before the developers, city officials and residents finish a collaboration to develop final plans later this year.

"This kind of initiative could kill both developer projects before the city has a chance to move to more full-fledged discussions of what those development proposals might look like," said Greg McLauchlan, co-chairman of the city-sponsored West Broadway Advisory Committee, which is seeking public input on the redevelopment concepts. "I think that is what the sponsors (of the referendum) would like to see happen."

Mayor Kitty Piercy said she hopes that residents don't sign the referendum petition.

The City Council endorsed the idea of the West Broadway Advisory Committee so residents can influence redevelopment plans, she said.

"This is a huge effort to do what the community has asked us to do - reinvigorate the two blocks of West Broadway," Piercy said. "I hope the community will recognize the value of this entire process and will be supportive as we move forward. They are invited to participate at all levels."

If sufficient signatures are gathered, the issue would go for a public vote next March.

The council voted 6-2 on Monday in favor of the $40 million downtown spending limit. City officials had planned to use that additional spending authority to help the city buy six buildings on and near West Broadway before the city's purchase options on the buildings expire this fall.

City officials were considering selling the properties, perhaps at discounts, to the two developers to get redevelopment efforts off the ground.

If the referendum qualifies for the ballot, the council ordinance approved on Monday and signed by Piercy on Tuesday would be suspended until the election is decided. That would prevent the city from purchasing all of the West Broadway properties that city officials had planned to buy this fall.

Even without the increased spending limit, the city would have $4.5 million available to spend on West Broadway, so it could acquire one or more properties. That money was left from the previous urban renewal district that helped build the downtown Public Library.

Even with a referendum qualified for the ballot, "we could do something; we just couldn't do the whole scope of the acquisition vision that we had," said Sue Cutsogeorge, city financial analysis manager.

Referendum organizers say they oppose the city's tentative selection of KWG because KWG could lure regional and national retailers to West Broadway, including a national movie chain that might show the same kind of films as the locally owned Bijou Art Cinemas on East 13th Avenue.

Others object to the possibility that businesses and nonprofit groups on West Broadway would be displaced by redevelopment. Other opponents want to preserve the older West Broadway buildings instead of razing them, as KWG has tentatively proposed.

"The KWG proposal is a much more radical than the Beam proposal and seems like an attempt to impose another mall-type experience downtown with those upscale chain stores," said McComas, the Sundance owner. "They are talking about a large scale multiplex and a 50,000-square-foot grocery store. I think it's a too radical and costly approach and it would go a long ways to destroying what character and personality that downtown still has."

Referendum backers will circulate the signature petitions in stores and other public places.

One of the organizers, Scott Landfield, co-owner of Tsunami Books on Willamette Street in south Eugene, said referendum supporters will gather signatures at the Eugene Celebration Sept. 7-9.

Besides McComas and Landfield, repeal backers include Greg Bryant of The Tango Center, whose nonprofit business on West Broadway in downtown would probably be forced to move by the redevelopment, and David Monk, a Eugene landlord and president of the activist group Citizens for Public Accountability.

CPA, which is not supporting the referendum, has a member on the West Broadway Advisory Committee.

Monk said he supports the referendum because he's not confident in the City Council's ability to resist pressures for large subsidies from KWG. And he doesn't think the city should participate in an urban renewal project that would raze the older West Broadway buildings.

"I don't think we need to bulldoze and start new,'' he said. "We have some beautiful historical buildings, and I think there is a potential to bring them back to life because they were glorious buildings."

City Councilor Alan Zelenka said it may be premature for residents to sign a referendum petition.

Many redevelopment details have yet to be decided, including public costs, he said.

"I would suggest that people hold off on signing a petition until we actually have a plan that specifically says we are going to do this and this and this," he said.

URBAN RENEWAL DEBATE

A referendum launched Tuesday is aimed at undoing changes the City Council made on Monday

to Eugene's downtown urban renewal district.

Urban renewal districts: Eugene has two, downtown and Willamette riverfront. The city uses property taxes generated within each district to finance public improvements there.

Change made on Monday: It would let the city spend $40 million on public projects downtown in the next 23 years. Eugene property owners would not pay more property taxes.

Why the districts can be controversial: Increased property tax revenue in the districts can't be used by other governments, including schools.

What's next: Referendum backers need to collect 5,373 signatures of Eugene voters by Sept. 12 to put the matter before voters in March.