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Ashland will share grant with OSF Part of it will go toward parking lot By TONY BOOM ASHLAND - The City Council voted 3-1 Tuesday to keep $250,000 of a $600,000 grant to help pay its share of a parking lot being built by the Oregon Shakespeare Festival on city land. OSF will receive the rest of the grant. The quarter-million-dollar figure struck a balance between a $200,000 share suggested by OSF and a city staff recommendation of $300,000. The money will pay part of the city's estimated $726,000 share of the $2.38 million project. Council members Don Laws, John Morrison and Susan Reid voted for the motion. Councilman Cameron Hanson voted against the award. "The costs have gone up fairly dramatically from what we originally agreed to," said Reid, who made the motion for the $250,000. "It's a decision we can live with," said Paul Nicholson, OSF executive director. "It has been an emotional issue, and it has reminded our members of the very special relationship between the city and the festival." The City Council agreed last June to a 75-year lease of land on Hargadine Street where OSF is building the parking structure and a new theater. In the lease, the city agreed to pay for one level of parking and strengthening to allow development above the third level, and to own and operate the structure. Oregon's Economic and Community Development Department awarded the city the grant and a $900,000 loan. OSF prepared the grant application but submitted it through the city, as the grants can't go to private organizations. Disposition of the grant and loan became more contentious in March when OSF said the city's share would be $845,000. Earlier estimates had a $1.8 million price with the city paying $600,000. Council members received a letter with the $200,000 proposal at the meeting from OSF President Dan Thorndike. The city will use $476,000 of the loan to finance its obligation The loan has an interest rate of 5.26 percent. OSF will receive the balance of the loan amount. Revenues from the parking structure will pay back the city loan. The city will also spend $32,000 on a parking meter system for the lot. Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.