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e program as an Affirmative Action grant program. He said that under any definition of the Targeted Business Assistance Program, the City takes a significant risk and cuts back on otherwise required review stages. Mr. Gleason responded that he does not feel that the City gives out high-risk loans. Rather, he said he sees this as very similar to the relationship between business loans and housing rehabilitation, in which the size of the loan and the parties involved are such that a bank could not return a profit. The City handles administration of such loans and has adequate resources to back up the loans, he said. Ms. Schue asked if it would be possible to create a program which addresses the groups the City would like to target without findings by offering a certain amount of money to people who do not qualify under other loan pro- grams or business assistance. She suggested that it might be possible to avoid all references to race or disability. She asked staff to respond. Mr. Gleason responded that such an approach would result primarily in appli- cations from businesses run by women. Eugene Development Department Director Abe Farkas suggested that applicants would be overwhelmingly Caucasian, given that the composition of the community is 95 percent white. e Mr. Rutan recommended that staff consult with Mr. Gary, redesign the Targeted Business Assistance Program so that it addresses the constitutional issue, and bring it back to the committee for further review. Mr. Bennett said he would find it very difficult to support a program if it did not target spe- cific groups. He questioned the value of establishing a program if some type of targeting does not result from it. Mr. Gleason said he felt that HUD presents the major obstacle to any program the City might propose. Mr. Miller suggested that staff explore the legal parameters and develop a program that encourages minority participation. Mr. Boles expressed his agreement with Mr. Bennett's position and requested that staff and legal counsel develop, as quickly as possible, an approach that meets Federal standards and council goals. Ms. Bascom suggested that councilors wait on designating the amount of money allocated to the program until it takes more definite form. The meeting was adjourned at 1:15 p.m. Respectfully sUb~tted, ?,,~/:::?:,'~!~~~'rff? ~:;:?~~- City Manager (Recorded by Jim Wright) e MINUTES--Eugene City Council March 1, 1989 Page 11