Arlie & Company

The Eugene development firm Arlie & Co. has offered to pay $40 million or more for the choice riverfront property that serves as Eugene Water & Electric Board head- quarters.

Utility officials, who received the informal offer Tuesday afternoon, had no immediate comment.

The offer represents a significant jump from the $29 million that Arlie offered for the property in 2005 during a bidding war with Triad Hospitals Inc., which had submitted an earlier offer of about $25 million. Triad later abandoned efforts to build on the site, and EWEB rejected Arlie's offer.

The company's latest offer comes just days before EWEB's elected commissioners are scheduled to meet in a joint session with the Eugene City Council to discuss potential development of the riverfront property.

EWEB hopes to move its operations complex to a new site in west Eugene, and the city has the right of first refusal to buy any riverfront acreage that the utility declares surplus. Rising construction costs, however, have complicated EWEB's hopes to relocate.

In its written offer, Arlie said it's prepared to pay $30 million for EWEB's main headquarters building at East Fourth Avenue and adjoining storage yard. The firm would pay $25 million for the office building, and a nonrefundable $5 million to be applied toward purchase of the storage yard.

Arlie proposes that it then would work with EWEB, the city and the public to develop a master plan for the storage yard acreage, consistent with the city's downtown plan. Upon completion of a master plan, Arlie proposes to pay EWEB "a sum of $1 million per net buildable acre" in addition to the previous $30 million.

With the storage yard occupying 10 to 15 acres, that means Arlie conceivably could pay a total amount approaching $45 million.

Under Arlie's offer, EWEB could continue to lease the headquarters building from Arlie. The company's offer specifically excludes the property's steam plant and Willamette River substation - two features that Arlie wanted to buy and then lease back to EWEB in its 2005 offer.

Arlie's offer benefits EWEB "in two important ways," said Scott Diehl, the company's chief operating officer, in the company's written proposal. "First, it will provide EWEB with an immediate source of cash. Second, it provides EWEB with qualified assistance in creating a successful master plan" for the property.

Diehl and other Arlie officials were unavailable for additional comment late Tuesday. An Arlie spokeswoman reached Tuesday evening said no one from the company would comment until today.

In 2005, Arlie indicated it wanted a mixed-use rezone so that it could put an office, retail and residential development on the EWEB property.

At Tuesday's EWEB commissioners' meeting, General Manager Randy Berggren said he will offer a preliminary response to the offer in several days, after soliciting feedback from commissioners. He declined to elaborate.

EWEB staff, in response to a query from Commissioner Ron Farmer, said the utility is restricted from selling the property until a master plan is completed. Farmer asked for a legal opinion on the question.

Commissioner John Simpson said during a meeting recess that he welcomes Arlie's interest.

"Maybe they're trying to get their foot in the door - saying, hey, we're first in line (after the city)," he said. "I'm comfortable with them doing that. We'll just see how it plays out."

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Arlie & Company makes new EWEB offer