Council signs off on purchase of EWEB headquarters for new Eugene city hall

Megan Banta, Register-Guard
·4 min read
The former Eugene Water and Electric Board headquarters sits along the riverfront in Eugene.
The former Eugene Water and Electric Board headquarters sits along the riverfront in Eugene.

Eugene will pay $12 million to take over the former EWEB headquarters on the Willamette River with plans to transform it into a new city hall.

Officials approved the purchase price and other key deal points on a 7-1 vote Monday night. City staff will now work with the public utility on a formal purchase and sale agreement.

The former EWEB headquarters at 500 and 502 E Fourth Ave is around 4.4 acres and includes two buildings linked by a sky bridge, parking lots and accompanying land.

Eugene Water and Electric Board's former headquarters on the Willamette River includes two connected buildings, a plaza, parking and other land.
Eugene Water and Electric Board's former headquarters on the Willamette River includes two connected buildings, a plaza, parking and other land.

Eugene will pay $8 million upfront for the buildings and land and another $4 million within five years of closing, which will be no later than July 1 under the approved terms.

Splitting the payments allows the city to purchase and invest to create council chambers and other first-phase items “without having to dip into reserves or any other sort of accounts that we didn’t anticipate,” said City Manager Sarah Medary.

EWEB sees the partnership as a unique opportunity with many advantages, utility General Manager Frank Lawson said.

“Selling the former headquarters property to the city is the sensible choice because it maintains public access to the site while minimizing the need for costly renovations,” Lawson said in a statement.

The purchase also meets a lot of the city’s needs, Medary said, and helps complete the city’s investment in the downtown riverfront and “making sure we have a really strong connection across the whole downtown to the river.”

Many city officials were excited about the deal, with Councilor Greg Evans quoting Jean Luc Picard’s catchphrase “Make it so.”

A long search for a new city hall

The city has been looking for a new city hall for several years and had previously considered EWEB’s former administration building.

At the time, it was around twice the price and needed a new heating and air-conditioning system, Councilor Alan Zelenka said. He didn’t support the move years ago but will now because of the price cut, a new HVAC system, the size, the possibility of a fire station and more parking for the riverfront.

Original announcement:Eugene eyes former EWEB headquarters for new city hall

“The riverfront development is a complete game changer,” Zelenka said. “That wasn’t really in the picture when we were having this discussion before.”

The building is nestled in the northern end of more than a dozen acres the city bought from EWEB and is redeveloping into a riverfront neighborhood including:

  • Downtown Riverfront Park along the eastern edge of the property.

  • Housing to the west and south of the former utility headquarters.

  • A park plaza to the south.

  • A redeveloped EWEB steam plant on the south end of the park.

Other councilors also highlighted the price, location and opportunities the property offers.

Councilor Mike Clark has long advocated for the city to consider the former EWEB headquarters for a new city hall and thanked the rest of the council for “your wisdom and for your willingness to look at this question in new ways.”

A for sale sign hangs from a bridge at the former Eugene Water and Electric Board headquarters along the riverfront in Eugene.
A for sale sign hangs from a bridge at the former Eugene Water and Electric Board headquarters along the riverfront in Eugene.

The city currently leases space in the downtown core at Lane Community College and other buildings.

The council voted unanimously to have staff include recommendations for the area near LCC’s downtown campus and keep the council updated on the overall transition process.

Medary said it won’t be a “giant exodus” because many employees will remain downtown. But councilors still expressed worries about downtown safety.

“It does make sense, and I will be supporting this, but not without concerns about downtown,” said Councilor Randy Groves.

Similar concerns spurred Councilor Emily Semple, who represents the downtown area, to vote against the deal. She acknowledged there are advantages but said she had to vote against it.

“When I finally get my office with a window and a door, maybe I’ll feel differently,” Semple said.

Other terms of the deal

In addition to the purchase price and closing date, officials approved other key terms, including:

  • Buying the land and buildings as is after 120 days of due diligence to review the property condition.

  • Giving EWEB the first right of refusal if the city decides to sell certain parcels within five years.

  • Collaborating to leave 1,000 square feet for an EWEB customer service center. The utility could use the space rent-free for five years and then would have the option to lease for another five years and would help with cleaning and utility costs.

  • EWEB leaving furniture, cubicles and networking and server equipment it doesn’t plan to reuse for the city.

What’s next?

Medary said staff will start on due diligence while negotiating the final purchase and sale agreement.

Eugene and EWEB will close the sale by July 1.

Contact city government watchdog Megan Banta at mbanta@registerguard.com Follow her on Twitter @MeganBanta_1

This article originally appeared on Register-Guard: Eugene city council OKs purchase of EWEB headquarters for city hall