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HERSHNER HUNTER LLP STEVE CORNACCHIA scomacchia @hershnerhunter.com March 31, 2005 Denny Braud City of Eugcn¢. Planning & Development Department 99 W. 10th Avenue Eugene, OR 97401 RE: West Eugene Enterprise Zone Our File No. 10461.20102 Dear Mr. Braud: : ' ~ ' We represent Junction City Water Control District. The District has received your letter, dated March 16, 2005, regarding the proposal to re-deSignate the West Eugene Enterprise Zone. We provide the following comments on that proposal on behalf of our client. The District manages a system of flood control and irrigation canals across western Lane County and western Benton County. In addition to the cost of managing that system, the District must also repay federal loans that paid for the initial construction of that system. The District levies a modest property tax to cover the cost of managing and paying for the system Actions taken by the City of Eugene and Junction City can negatively affect the District's ability to provide its required service to its constituents. Each time either city withdraws property from the District following annexation or, as in subject proposal, limits the District's collection of resources, the District's financial condition is affected. The subject proposal is additionally troubling considering the fact that the City of Eugene charges a storm water fee within its borders and then collects that storm water and discharges it into the District's system without any financial participation with the District. The designation and operation of the West Eugene Enterprise Zone will reduce the District's tax collection and will continue the gradual erosion of its financial ability to provide services APR 0 4 2005 ATTORN[YS 180 East llth Avenue, Eugene, 0regon 97401 PO Box 1475~ Eugene, 0regon 97440 541-686-8511 fax 541-344-2025