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is mostly north of that and in the CIP with no Federal funding. Mr. Eaton stated that he is not objecting to capital improvements, just to this project. Ms. - Miller stated that it would be helpful for the council if they could look at the CIP list as it comes along. The council cannot be kept current with every pro- ject, and it is hard to find citizens that are willing to spend time and energy helping to track projects. Ms. Smith suggested that Management Services be given Mr. Eaton's name and address to notify,him of Budget Committee meetings. Ms. Schue added that there is also a draft of the long-term CIP list which staff can give to him. IV. ECONOMIC DIVERSIFICATION TASK FORCE REPORT ON PROGRESS OF EUGENE'S ECONOMIC DIVERSIFICATION PROGRAM (memo and additional information distributed) Mr. Gleason introduced Susan Smernoff, Planning. Ms. Smernoff stated that there were several issues concerning the Economic Diversification Program which she would, like to discuss. The City Council has indentified economic diversification as a priority goal for several years. The Economic Development Committee was established to develop policies that respond to economic development issues. Two of the policy documents that originated from these committee meetings were Eugene's Economic Development Strategies and Guidelines for Locating Firms ,on Special Light Industrial Sites designated in the Eugene-Springfield Metropolitan Area General Plan. On May 22, 1981, the council asked staff to develop an action program for economic development. On August 12, 1981, the City Manager's Office presented a six-point program at a City Council study session. The six points are: industrial siting, core area - redevelopment, small business assistance, destination point activities, employment and training, and capital improvement programming. The resolution adopting the / program and additional information were included in the councilors' packets. Councilor Lindberg stated that in the core area, there is an interdependence between housing and commercial development. These should be coordinated in the planning process. Criticism has been received since some feel there are conflicting goals. For example, increasing density conflicts with housing rehabilitation. Rehabilitation prevents increased density and inf{lling. He would suggest that this conflict be pointed out in further discussion. He also felt it would be helpful to get a cost comparison for new versus rehabilitated development, and their impact on the tax rolls. It has cost more in other cities to allow natural deterioration. Another concept is the urban village and the livable cities project, which could be done block by block. These ideas could be joined. Public reaction to core area renewal has been caused by the large focus. He feels core redevelop- ment would be better accepted if done in smaller projects. Mr. Gleason added that the approach of allowing natural decay is an idea created by the Federal government tax laws. This is similar to allowing a person's teeth to rot out before repairs are begun. The Planning Commission and the City Council have experienced how difficult it is to strike a balance between commer- cial and residential areas. A balance can be reached through land use decisions. e MINUTES--Eugene City Council September 23, 1981 Page 3