01/23/17 City Council Agenda Packet

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!³³ ¢§¬¤³ ! West Eugene Enterprise Zone Overview Program Summary Description: By offering a short-term tax exemption, the purpose of the enterprise zone program is to encourage new business investment, job creation, higher incomes for local residents, and greater diversity of economic activity. Enterprise zones induce eligible businesses of all sizes to make additional investments that will improve employment opportunities and spur economic growth. Eligible business that make authorized investments within an enterprise zone will be exempted for 3 to 5 years from local assessment of property taxes on the value added to the business and property located within the enterprise zone. Enterprise zone property is also exempt for up to two years while it is being constructed or installed. Business Firm Eligibility: Prior to commencing construction or installation of equipment or machinery, an eligible business firm must submit an application to the zone sponsor who then determines eligibility and authorizes the investment for purposes of the program. Eligible firms include manufacturers, processors, shippers, and other operations that serve other organizations, as well as headquarters and call centers. Otherwise, retail, construction, financial, and certain other activities are explicitly ineligible. Qualified Property: Investments that result in a new building, modification or addition to a building, or new machinery or equipment qualify for exemption. Land, previously used property, and minor personal property items do not qualify. Requirements: In exchange for the tax exemption and to continue to be eligible, authorized businesses must meet the following requirements: 3-year enterprise zone exemption Increase full-time, permanent employment of the firm inside the enterprise zone by the greater of one new job or 10 percent (except for special case local sponsor waivers); No concurrent job losses more than 30 miles from the zone; Maintain employment levels during exemption period; Enter into first source hiring agreement with local job training providers; and Satisfy local additional conditions. 4- or 5-year enterprise zone exemption All requirements for 3-year exemption; “Compensation” of new workers at 150% of county average wage; Local approval by written agreement with the local zone sponsor; and Additional requirements that the local zone sponsor may reasonably request.