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"reasonably related to the public purpose of providing opportunities for groups of persons to obtain employment." Additional background information on the enterprise zone program is included in Attachment D. Statewide, there are two zones that expire in 2005 (Harrisburg and Madras). Other communities, including Harrisburg and Madras, are able to compete for these two available zones. Both Harrisburg and Madras are expected to reapply for ten more years of enterprise zone designation. It is anticipated that Harrisburg will receive strong State and regional support for re-designation of its zone given the importance of the thriving RV industry to the region's economy. Madras is also expected to make a strong push for re-designation given the fact that its zone is focused on a large City-owned industrial park. Eugene's application should also receive strong consideration, given the positive investment history associated with the former zone, and the importance of Eugene's manufacturing sector relative to the region. It is also possible that the State legislature could consider expanding the number of enterprise zones allowed statewide, and that such expansion would be applicable for this year' s 2005 application round. The 2005 application material for designation of an enterprise zone in Eugene is substantially complete. If the number of applicants exceeds the number of zones available, the State allows thirty additional days (following April 25) for applicants to submit additional material in response to specific competitive criteria. A draft copy of Eugene's application is included in Attachment E. RELATED CITY POLICIES The enterprise zone tax exemption addresses the following related City policies: Sustainable Community Development The council's Sustainable Community Development goal addresses high quality of life and a healthy economy. The availability of quality jobs is a basic quality of life issue. With a local unemployment rate that exceeds the national average, and local income levels below state and national averages, the creation of new production sector jobs is fundamental to the health of the local labor market. The creation of an enterprise zone will also provide an incentive for redevelopment, infill development, and brownfield redevelopment, which are primary sustainability goals. Growth Management The enterprise zone advances the City's Growth Management goals by encouraging more intensive industrial development in a defined area that has been zoned accordingly, and where existing public infrastructure investments have already occurred. Fair, Stable, and Adequate Financial Resources The long-term property tax revenues that result from new investments that are encouraged by the short- term tax exemption address Council's goal for financial resources adequate to maintain and deliver municipal services. L:\CMO\2005 Council Agendas\M050216\S050216A. doc