Item 6: Ordinance on Local Criteria for West Eugene Enterprise Zone

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY An Ordinance Establishing Local Criteria in the West Eugene Enterprise Zone and Adopting a Public Benefit Scoring System; Repealing Resolution 4851; and Providing an Effective Date Meeting Date: May 22, 2006 Agenda Item Number: 6 Department: Planning and Development Staff Contact: Denny Braud www.eugene-or.gov Contact Telephone Number: 682-5536 ISSUE STATEMENT The council is asked to consider adoption of an ordinance (Attachment A) concerning the establishment of local criteria that would apply to tax exemptions granted in the West Eugene Enterprise Zone. BACKGROUND On August 8, 2005, the council approved Resolution No. 4851, which established interim local criteria applicable in the proposed West Eugene Enterprise Zone (Attachment B). The resolution provided that the City of Eugene and Lane County, joint sponsors of the zone, undertake a process to develop and adopt permanent standards and public benefit criteria. The resolution provided for the establishment of the Enterprise Zone Committee composed of two elected officials from each governing body, and a total of four community representatives, two of whom were appointed by each governing body. The resolution also provided that opportunities for stakeholder participation and community involvement, including public hearings, be included in the process. The elected officials appointed to the committee included City Councilors Andrea Ortiz and Chris Pryor, and Lane County Commissioners Bobby Green and Faye Stewart. The City-appointed community members included Claire Syrett and Rusty Rexius, and the County-appointed community members included Lou Christian and Steven Korth. The committee met on six occasions between November 2005 and February 2006. The committee also hosted a public workshop on December 7, 2005, and a public hearing on January 31, 2006. Public input gathered at the workshop and public hearing was instrumental in shaping the committee’s recommendation. The City Council held a public hearing on the ordinance on May 8, 2006. The Lane County Board of Commissioners is scheduled to consider the proposed criteria on May 17. ORS 285C.150 provides that a sponsor of an urban enterprise zone may require an eligible business firm to satisfy other conditions. These conditions must be reasonably related to the public purpose of providing opportunities for groups of persons to obtain employment, and can only be imposed based on an adopted policy that establishes standards for imposition of the conditions. The standards recommended by the committee include “Public Benefit Criteria” focused in nine areas: Small Business, Health Insurance, Training and Advancement Opportunities, Wages, Employee Benefits, Redevelopment, Referral Agency Hiring, Construction Practices, and Investment Size. Consistent with the direction from the council and County Board, 25% of the tax exemption benefit would be conditioned on these Public Benefit Criteria standards. The committee recommended a point system L:\CMO\2006 Council Agendas\M060522\S0605226.doc