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panel selected one of the proposals, and in 1996 negotiations began with a development group on a contract for construction and financing of Courthouse Square. In 1997, the County bought out the remaining three owners of property on the Senator Block and razed all buildings on it, clearing the entire site. The County retained Century West Engineering Corporation as its environmental engineer. Under the supervision of Century West, the County completed the delineation, investigation and remediation of the subsurface of the Senator Block. As of October 1998, all environmental reports have been submitted to Oregon Department of Environmental Quality (DEQ). Marion County has asked DEQ for letters of "No Further Action" on the entire block. All tasks requested by DEQ have been completed. DEQ has requested no further delineation, investigation or remediation. DEQ has accepted the Project design without change. The County knows of no subsurface condition that would delay or prevent construction of the Project. In 1997, negotiations with the initial development group began to break down regarding their role as developer and their compensation. An impasse was declared. On May 29, a mediation session was held for the purpose of terminating the initial development group's agreement and determining appropriate compensation for their services. The settlement agreement resulted in a payment of $388,889 to the initial development group by the County for services rendered. Although originally conceived as a public-private partnership which would include a significant investment from a private developer, the scope and size of the Project began to change as more was learned about costs and financing options. In June 1997, the new project manager, Melvin Mark Companies, was selected. Efforts to redesign the Project were undertaken immediately to bring projected costs within the budgets of the County and the District. Recognizing that the redesign would change the original concept of the Project and that the public had legitimate ~ questions about its financing and management, the County and the District asked that a task force of the Salem Area Chamber of Commerce review the new plan for feasibility and make recommendat~ons on whether to proceed. The review panel concluded in its report, delivered in December 1997, that the Project should proceed. By the time the Chamber of Commerce task force's report was delivered, the County and District had determined that a more thorough review of the feasibility of proceeding with the Project was necessary, both to make a prudent financial decision and to restore public confidence in the Project. A six-member Special Project Oversight Committee (SPOC) of leading community members and those with expertise in public budgeting and finance was appointed. The SPOC, after lengthy and detailed analysis of the Project, concluded in February 1998 that the Project should proceed to the final design stage and that a citizens' advisory committee should be appointed to monitor the progress of the Project. A five-member citizens' advisory committee was appointed in June 1998 ar.~ continues to review decisions as the Project moves through the phases of development. The District has secured federal funds to finance the bus mall and office space for the District. T'he Project will go to bid in December, 1998. Bids are expected to be reviewed in January 1999 and a construction firm will be selected at that time. The County anticipates that construction will begin in early 1999 and the Project is expected to be ready for occupancy by August 2000. The Project The Project consists of the County's shaze of Courthouse Square. The Site upon which the Project is to be located is owned by the County and the District as tenants in common, with the County owning a 68.71 percent undivided interest and the District owning a 31.29 percent undivided interest. ~ 17