03/14/1984 Meeting - Laserfiche WebLink

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e e e Councilor Wooten felt the IRB program would be good for local business and those attempting to relocate to Eugene. She said the program was another means for the City to participate in creating job opportunities. She strongly supported proceeding with the declaratory judgment. She also suggested that the City develop its eligibility criteria for the program while seeking that judgment. In response to a question, Ms. Smernoff stated that small issues are under $10 million. She explained that issues under $750,000 are not as efficient; however, "umbrella bonds II could be issued to a group of several firms applying together for the bond. Ms. Wooten added that this method could be used by existing businesses which required funds for capital expansion. Councilor Nichols also voiced her support for seeking the declaratory judgment. She requested that she be provided with the additional information on proposed further restrictions of the IRB program as mentioned in the staff report. Councilor Obie expressed his appreciation of the staff report and his support for the recommendation. He stated that 80 percent of the nation's jobs are created by small employers and the IRB program would be a tool to assist the small businesses. He also felt the program could place an additional burden on the Business Assistance Team through requests for counseling and guidance from small businesses on the application and use of bonds. He suggested that this assistance be provided through the University of Oregon or Lane Community College. Councilor Ball reinforced some of the comments made by Mr. Holmer. He felt that the IRS program has been abused throughout the country. While he stated that he would not oppose the action to seek the declaratory judgment, Mr. Ball said he would remain skeptical about the possibility for use of the program once obtained. He did not oppose the use of the program for small business development, but he stressed that the program has generally been used for the large chain stores. While he was not fully supportive of the program, he said the City could use it to assist the small businesses. Mr. Holmer agreed with Mr. Ball's comments. Councilor Wooten, speaking for the CCED, said it was not the committee's intent to encourage any loose application of the program. She said it was the hope of the committee to emulate the best applications of the program. Councilor Nichols stated that the past abuses of the program have occurred where abuses were anticipated. She felt the application of the program in Eugene would receive a good public hearing and would address any possible abuses. Mr. Obie moved to direct the City Manager that the City Attorney's Office seek a declaratory judgment on the City's ability to issue industrial development revenue bonds. Ms. Wooten seconded the motion with the understanding that the City will proceed with developing the eligibility criteria while the judgement is being sought. Roll call vote; the motion carried unanimously, 7:0. MINUTES--Eugene City Council March 14, 1984 Pa ge 11