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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 the council's goal for financial resources adequate to maintain and deliver municipal services. COUNCIL OPTIONS Regarding the establishment of job quality standards, the following three options have been identified: 1. Establish standards prior to July 1, 2005. Under this option, staff is proposing that the enterprise zone subcommittee of the Mayor's Committee on Economic Development be utilized and expanded for the purpose of developing a recommendation on job quality standards. The subcommittee participants included Rusty Rexius, Cathy Smith, Steve Korth, Tom Bowerman, and Jana Rygas. The expansion of the subcommittee would include a representative from the Eugene Springfield Solidarity Network and a representative from the University of Oregon's Economic Forum. The Oregon Employment Department would also be utilized to provide relevant local employment and wage data. The expanded subcommittee group would gather public input, draft a recommendation on job quality standards, and present the recommendation to the public for input prior to City Council adoption. Pros. - Utilizes subcommittee participants who are familiar with the enterprise zone issues, and previously initiated some work on local standards. - Expands the subcommittee to include additional special interest and local expertise. - If application is successful this year, standards would be in place prior to designation of the zone. Cons. - Requires dedication of resources, and time commitment from the public, with no assurance that Eugene's application will be successful this year. - Timeline for thorough analysis, public input, and recommendation is compressed. 2. Adopt interim standards. Given the uncertainty regarding the State's approval of an application this year, the council could adopt interim standards that would be in place until new standards can be fully processed and adopted. The new standards would be processed immediately following a successful State zone designation. Staff is proposing that a slightly amended version of the enterprise zone "Public Benefit Criteria," adopted by the council in 1997 (Attachment B), could be used for any investments that qualify prior to adoption of new standards. As an interim policy, the Public Benefit Criteria (minimum 85% tax exemption benefit), originally adopted through an extensive public process, could be amended to reflect the minimum 75% tax exemption benefit intended for the proposed enterprise zone. The proposed amendment to the Public Benefit Criteria scoring formula is included in Attachment C. These interim standards would be adopted by resolution prior to July 1, immediately following notification from the State of Oregon that Eugene' s application is successful. L:\CMO\2005 Council Agendas\M050411\S0504117.doc