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e encouraged by IDA to hire locally and to use local architects and contractors. Mr. Boles said that, although the State, City, and University were involved in a 20-year risk venture, the benefits to them were limited to increased employment in the area and the hiring of local contractors. He said the agreement should include a provision to provide the City with intellectual royalties resulting from research projects, and a provision for the City to have stock in equity. He said he was loath to see the City risk millions of dollars for minimal reward. Mr. Miller said the City's risk was similar to that undertaken in other industrial projects. Mr. Keller said the City was responsible for some aspects of the project as with other development properties. He said the risk to the City was minimal. Mr. Boles said the issue was not the City's risk, but the City's reward. Mr. Holmer agreed that the City should share in intellectual benefits of the research park if possible. Abe Farkas, POD Director, said all research park developments included an element of risk. He said the City's primary financial remuneration would be in two parts: 1) benefits through tax increment, and 2) money secured from the State to the City which would be available for the development in the form of loans. Mr. Swan said those who would be inventing and creating at the research park would not be the developers, but the sub-tenants of the developers. He said e the commission had seriously considered a percentage of gross rental structure. He said the idea was rejected because the agreement would be very difficult to negotiate, partly because the project was not staffed to accomodate this concept. He said the University has always wanted a passive landlord role. Ms. Ehrman suggested the idea of intellectual royalties be revisited in 20 years. She said any attempt to investigate the idea now could impede progress on the project. Ms. Bascom said the community might benefit indirectly from the research park as Portland had by being affiliated with Nike. Mr. Boles said it was incorrect for the partners in the research park to think of it as anything less than a high-risk venture. He said the investors should try to recapture a reward when the park had been developed. He said the partners in the project should not rely on the good graces of the tenants. He said they could lose potential benefits if they were not specified in the development agreement. He said such benefits could be negotiated to be phased in after several years. Mr. Boles said the research park project had received Regional Strategy funds because it was intended to benefit all of Lane County. However, he said the development agreement did not include a statement that research and development products should be manufactured locally. e MINUTES--Eugene City Council August 8, 1990 Page 5