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2. Adopt interim standards. Given the uncertainty about 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 C), 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 D. 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. Pros. - City would know whether its zone designation application was successful prior to expending resources on development and adoption of new standards. - Allows additional time for analysis of new standards and public input. - Public Benefit Criteria can be easily amended in the interim to reflect the minimum 75% tax exemption benefit intended in the proposed enterprise zone. Cons. - New job quality standards would not be in place on July 1, 2005, if the City's zone designation application is successful this year. 3. Defer process for adoption of standards until zone application is approved. Under this option, the process to create job quality standards would not begin until there were assurances that Eugene's zone designation application was successful. Pros. - City would know whether its zone designation application was successful prior to expending resources on development and adoption of new standards. - Allows additional time for analysis of new standards and public input. Cons. - If zone designation application is successful in 2005, it is possible that a new investment would qualify for an exemption prior to adoption of standards. CITY MANAGER'S RECOMMENDATION The City Manager recommends that the council adopt the Resolution (as amended in Attachment B) authorizing the submittal of an application for designation of an enterprise zone in 2005. The City Manager also recommends that the Public Benefit Criteria, as amended in Attachment C, be adopted as interim standards in the event that Eugene's application is successful this year. The interim standards would be adopted by resolution prior to July 1, following notification from the State that Eugene's application is successful. New job quality standards would be created in a timely manner thereafter, in accordance with the process outlined in option 1 above. L:\CMO\2005 Council Agendas\M050420\S050420A. doc