Steam Plant Development to Move Forward with Approval of Expanded Funding

On April 24, 2024 Eugene City Council, acting as the Urban Renewal Agency Board, voted to approve an additional $6 million in Urban Renewal funds (tax increment funds) to support the redevelopment of the Steam Plant. This key action enables the project to move toward the next phase of development.

Located prominently along the banks of the Willamette River, the Steam Plant is an iconic representation of our community's history and is ripe with possibility. The redevelopment of the Steam Plant is a once-in-a-lifetime opportunity to honor the significance of the Downtown Riverfront site while embracing its potential to be a place the community is proud of. Unfortunately, after years of disuse, general aging, and because of the very specialized use it was designed and built for, the building needs considerable investment and restoration before it can be usable.

The Agency Board initially approved deal points for the Steam Plant redevelopment project in January 2022, committing funding for asbestos abatement, system development charges, and permit fees. In April, they approved revisions to those terms, which include extending the timeline for construction and the $6 million of additional funds. The additional funds will be used for project related costs such as building structural investigations including limited selective demolition, building stabilization, additional asbestos abatement or environmental remediation, historical preservation activities including archiving and preserving historical artifacts. These newly approved changes increase the Agency's total financial assistance to an estimated $7.8 million (the new $6.0 million contribution, plus previously approved assistance, currently estimated at $1.8 million). Construction will start 24 months after a development agreement is signed.

The development team, identified as Dream Plant, LLC (Dream Plant) and led by deChase Miksis, proposes to save and adaptively re-use the Steam Plant, transforming it into an iconic community destination that connects people with downtown and the Willamette River. The ground floor will be a gathering place where people come to work, play, collaborate, and experience a setting for arts and culture amidst venues offering Eugene's beer, wine, coffee, and food. The upper levels of the building include a hotel that provides the fiscal foundation to make the redevelopment feasible and sustainable. The centerpiece of the building will be a flexible and adaptive performance and exhibit space, which was added to the proposal in response to community input that asked that the building be a place for the creation and enjoyment of art. The building will include flexible office spaces for a variety of tenants to encourage collaboration and leverage its location between Downtown and the University of Oregon. The team will partner with the City to program and activate the new overlook to be built on the water intake structure sitting on the edge of the river, offering food and beverage options with the dramatic industrial backdrop. (See the Dream Plant proposal online.)

"We see this as an unparalleled opportunity to revive a historic landmark and create a vibrant community hub along the Willamette River. With the approved additional funds, we're poised to preserve its legacy while ushering in a new era of innovation, culture, and connectivity for Eugene," shares Mark Miksis, Dream Plant development team lead.

All other terms the Agency Board approved in 2022 remain the same. Key elements of those include:

• Dream Plant will list the property on the National Historic Register.
• The project will be constructed with prevailing wages.
• The City and Dream Plant will enter into an agreement for the non-exclusive use and exclusive concession rights of the Southern Plaza (which includes the River overlook), including maintenance responsibilities. This means the space will be open to the public, but Dream Plant will manage concessions, like food vendors.
• The Agency will sell the property to Dream Plant for $1.
• The City/Agency will work with Dream Plant to identify 125 potential off-site parking spaces.

Riverfront Urban Renewal Plan Amendment and District Capacity

When the Agency Board considered the Steam Plant sale and redevelopment terms in January 2022, the Riverfront District was set to sunset in June 2024. In 2022, the Agency Board was able to commit $1.5 million to the project; however, the District did not have enough capacity to consider fully funding Dream Plant's anticipated funding gap. In January 2024, City Council approved an amendment to the Riverfront Urban Renewal Plan, raising the maximum indebtedness (i.e. spending limit) by $75 million, which is estimated to extend the life of the District by 25 years. Redevelopment of the Steam Plant remains an eligible project in the amended Riverfront Urban Renewal Plan; therefore, the District now has the additional financial capacity thus allowing the Agency Board to direct additional Urban Renewal funds toward redevelopment of the Steam Plant.

For more City updates visit our City Newsroom webpage.

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