06/11/1990 Meeting - Laserfiche WebLink

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~ 7. 31 percent, 9-year Tax Differential Mr. Holmer raised concern that during the nine-year period of reduced taxes, the property owners will not be contributing to the cost of a refinement plan which is intended to benefit them. Mr. Smith responded that because this is a joint venture, the City hopes the County will help with associated costs. The City plans to negotiate for continued services with County and State police for sometime after annexation. He added that service demands are different for these property owners because most property owners have private security forces in place. e Responding to a question, Mr. Smith said that the operating levy amount changes over time with City tax rates. Once annexation has been agreed upon, the percent of operating levy will have to move with the levy of the taxing entity. Rather than allowing tax deferment for nine years, Mr. Boles suggested the possibility of a stepwise increase in tax rates. Mr. Smith said property owners felt the nine-year deferment period provides the greatest degree of flexibility needed to accumulate capital for new development. Mr. Bennett asked whether industrial landowners' general reluctance for annexation suggests that many find City taxes to be too high. Mr. Gleason agreed that heavy industrial users typically find the short-run financial constraints imposed by annexation to be prohibitive. He noted, however, that over the long run, it becomes more worthwhile to be annexed to cities than not. e Referring to the fact that developed and undeveloped properties are being treated in the same way, Mr. Bennett noted that some might argue that industrial landowners cannot compete under the same taxing constraints. 8. Airport Vicinity Industrial Refinement Plan Ms. Ehrman said that County participation with respect to the airport refinement plan should be made clear. Mr. Holmer said that the Southern Pacific Railroad should be included in both the agreement and the refinement plan. Mr. Gleason said that Southern Pacific Railroad is not willing to be included in the agreement, and should not be included in the discussion. He noted, however, that after a contract with ICCO has been signed, it is likely that the City will find new ways to encourage them to come to an agreement. Mr. Rutan emphasized that the practice of conducting refinement plans in advance of annexation has taken place previously in City policy. Partnerships which are formed as a result help defray the costs associated with this planning. Responding to a question, Mr. Smith said it is doubtful that the legislature will allow island annexation to occur using properties with delayed annexation to produce the island. MINUTES--Eugene City Council Dinner/Work Session June 11, 1990 Page 5