Eugene agency directs staff to design $2 million downtown tenant improvement grant pilot

EUGENE — The Eugene Urban Renewal Agency voted unanimously June 24 to direct staff to prepare resolutions implementing a five-year Tenant Improvement Grant pilot to encourage commercial activity and fill vacant storefronts in the downtown core.

Staff described a program aimed at converting underused ground-floor spaces into active businesses by funding permanent building improvements such as plumbing and electrical upgrades, ADA work and fire suppression systems. "Downtown Eugene has far too many vacant storefronts," Dylan Hyborn, who presented the proposal, said. The agency would pay up to 70% of total project costs, with applicants required to contribute at least 30%.

The program is proposed as a $2 million pilot funded with $1.5 million from the Downtown Urban Renewal District and $500,000 from the Riverfront Urban Renewal District. Grants could be awarded up to $250,000 per project and temporary uses would not be eligible. Staff emphasized the program is intended to add long-term value to the downtown building stock and support business retention, expansion and recruitment.

Councilors pressed staff on administration and scope. Councilor Keating asked for vacancy mapping to identify where underused buildings are concentrated; staff said they currently have trend data and would develop more detailed vacancy mapping during implementation. Councilor Zelenka asked how tenant-owner conflicts would be handled; staff said property owner authorization would be required and applications without owner sign-off would be incomplete.

Supporters framed the pilot as a targeted, nimble tool. Councilor Groves said she was "thrilled we’re putting more energy and effort into our resources downtown" and voiced support for the pilot. Councilor Yeh and others urged staff to consider ways to ensure equitable access, recommending that the city consider application timing or batching to avoid a strictly first-come, first-served process that could disadvantage smaller or marginalized applicants.

Councilor Leech moved to direct the agency director to bring back resolutions incorporating the program elements described in the staff packet; Councilor Kashinsky seconded. The mayor called for a hand-raise vote and the motion passed unanimously, 8-0.

Next steps: staff will draft resolutions and administrative rules for the agency board to review, develop outreach to property owners and brokers, and return with implementation details in a future meeting.