09/08/1986 Meeting (2) - Laserfiche WebLink

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proposed areas included almost 800 acres of industrial-zoned land, including the only significant piece of land in the area designated for heavy industrial e use, he noted, Mr. Beyer said business benefits included a five-year declining abatement of property taxes, beginning at 100 percent the first year and decreasing 20 percent annually until full taxes were paid in the sixth year, He said total tax abatement for the entire period came to about 60 percent, Mr, Beyer said other proposed benefits included top priority for processing of City deve 1 opment permi ts, offering assistance with financing and priority for consideration for the Eugene Development Fund, and providing employee recruitment and training assistance through the Southern Willamette Private Industry Council. Mr. Beyer said the benefits by law would apply only to new construction or new equipment acquisitions within the zone. He said businesses expanding within the zone could use the benefits, but firms were prohibited from relocating from elsewhere in the Ci ty or the state just to take advantage of the benefits. Mr. Beyer said businesses also had to be non-retail and had to meet certain hiring requirements, including Dbtaining 60 percent of the workforce from within the enterprise zone and 40 percent from economically disadvantaged groups. Ms. Ehrman asked about direction received from CCED, Mr, Beyer responded that when CCED initially had considered the enterprise zone, it had directed staff to prepare an application to be submi tted to the State if the council requested it, but not to commit the council, He said CCED had reviewed the item again 1 ast week and had recommended that the counci 1 endorse the e proposal. Mayor Obie noted that CCED had confirmed that revenues would be generated to offset the benefits to industry, Mr, Hansen said he understood that a delay of two and one-half to three weeks currently occurred in issuing building permits, He asked whether a commercial development within the City but not within the enterprise zone would be placed behind a business within the enterprise zone. Mr, Beyer said businesses within the zone would be placed at the top of the queue, which he added was not a requirement of the enterprise zones. Ms. Wooten asked about the prohibition of relocations to take advantage of the benefits within the zone, Mr. Beyer said relocations from elsewhere in the State were not eligible for enterprise zone benefits, but expansions were eligible. He added that determinations of eligibility would be made by the State Revenue Department, Responding to Ms. Wooten's question, Mr, Beyer said job creation figures in the agenda packet had been taken from Metro Plan assumptions, which specified from 12 to 22 jobs per acre of industrial land. He said scenarios had assumed 15 jobs per acre, Ms. Wooten also asked about the assumption that 25 percent of employees would purchase homes for $60,000 each, Mr. Beyer said that assumption had been presented to public and private planners in the area, and he conceded that it probably was the least reliable assumption, e MINUTES--Eugene City Council September 8, 1986 Page 6