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------~ Mr. Lindberg said that the two main feelings expressed at the RPAC hearing on the plan had been fear of tax-increment financing and fear of the ERA. As a . result of the latter, the committee recommended a citizen participation program for any project that is done. Ms. Schue noted that the committee's plan was in conflict with the Housing Dispersal Policy which discourages addition of low-income housing in the down- town area. Mr. Obie expressed strong dissatisfaction with the non-recommendation of the RPAC. ,He said he believed that they had erred in choosing such a large area for study just to get a larger tax increment. Ms. Smith raised the issue of safety downtown. She said that citizens have real feelings of fear of crime regarding the whole downtown area. She fe 1t th at this must be countered by a program of education and communication. Councilors agreed to place discussion of this item on the agenda of their upcoming work/goals session. Mr. Keller thanked Mr. Tharp for his presentation. IV. ROOM TAX SUBCOMMITTEE UPDATE Mr. Gleason introduced Mr. Reynolds. Mr. Reynolds said that the Room Tax Subcommittee of the City Budget Committee had been directed to examine possible auxiliary funding sources to supplement the room tax fund and to make that fund e more responsive to cultural, tourist, and convention-related requests for funding, and to aid in the publicity and promotion necessary to make Eugene a destination point for the tourist industry. The subcommittee was chaired by Gary Williams and was made up of three members of the Eugene Performing Arts Commission, three members of the Room Tax Committee, and an at-large citizen member. Mr. Reynolds had staffed the subcommittee. Mr. Reynolds distributed copies of a memorandum dated September 14, 1981, outlining the recommendations of the subcommittee to the budget committee and the council. The recommendations were for the establishment of three new taxes as follows: 1. Amusement Machine Tax--a tax of $250 annually for each of the approxi- mately 400 electronic amusement machines in the city. PrOjected to generate $106,000 annually. 2. Gross Receipts Tax on Restaurants--a one percent tax to be added to each patron's bill, excluding alcoholic beverages. Projected to generate $600,000 annually. 3. User Fee for the Performing Arts Center--a 25-cent fee added on to each ticket purchased. Projected to generate $100,000 annually. Mr. Reynolds explained that he would be meeting with the editorial board of the Eugene-Register Guard to discuss these suggestions on September 18, 1981. A council public hearing on the recommendations has been scheduled for October 12, . 1981. MINUTES--Eugene City Council September 14, 1981 Page 5