Item 3: Res./Interim Job Stds. - Laserfiche WebLink

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"public benefit contribution" has been adjusted to reflect the desire to condition 25 percent (formerly 15 percent) of the tax exemption on the public benefit criteria. Additionally, a cap on the tax exemption has been added in response to City Council direction. Staff recommends a cap of $30,000, which would limit the three-year tax exemption benefit to a maximum of $30,000 per new full-time job created. In the event that the proposed West Eugene Enterprise Zone is designated, staff will propose a public involvement process for establishment of job quality standards that would replace the interim criteria. It is anticipated that the final job quality standards would be adopted by the council in Fall 2005. RELATED CITY POLICIES The enterprise zone tax exemption addresses the following related City policies: Sustainable Community Development. The council's Sustainable Community Development goal addresses high quality of life and a healthy economy. The availability of quality jobs is a basic quality- of-life issue. With a local unemployment rate that exceeds the national average, and local income levels below state and national averages, the creation of new production sector jobs is fundamental to the health of the local labor market. The creation of an enterprise zone will also provide an incentive for redevelopment, infill development, and brownfield redevelopment, which are primary sustainability goals. Growth Management. The enterprise zone advances the City's Growth Management goals by encouraging more intensive industrial development in a defined area that has been zoned accordingly, and where existing public infrastructure investments have already occurred. Fair, Stable, and Adequate Financial Resources. The long-term property tax revenues that result from new investments that are encouraged by the short-term tax exemption address the council's goal for financial resources adequate to maintain and deliver municipal services. COUNCIL OPTIONS Regarding the establishment of job quality standards, the following two options have been identified: 1. Adopt interim criteria prior to July 1, 2005, that would be in place until new standards can be fully processed and adopted. 2. Do not adopt interim criteria prior to July 1, 2005, and fully process and adopt standards as soon as practical. CITY MANAGER'S RECOMMENDATION The City Manager recommends that the council adopt the proposed resolution establishing interim local criteria. In the event that Eugene's application is successful, new job quality standards would be created in a timely manner thereafter, in accordance with a public involvement process approved by the council. L:\CMO\2005 Council Agendas\M050627\S0506273.doc