Item 4: Enterprise Zone Stds. - Laserfiche WebLink

Home Browse Search

EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Action: Resolution 4849 Establishing Interim Local Criteria Applicable In the Proposed West Eugene Enterprise Zone and Adopting a Public Benefit Scoring System; and Repealing Resolution 4845 Meeting Date: July 18, 2005 Agenda Item Number: 4 Department: Planning and Development Staff Contact: Denny Braud www. eugette-or, gov Contact Telephone Number: 682-5536 ISSUE STATEMENT The council is being asked to consider a resolution establishing interim local criteria that would apply to tax exemptions granted in the West Eugene Enterprise Zone. BACKGROUND On June 27, 2005, the council approved Resolution No. 4845, which supported the establishment of interim local criteria applicable in the proposed West Eugene Enterprise Zone. On June 28, 2005, the City was notified that its application for designation of an enterprise zone was approved by the State of Oregon, with designation of the zone effective July 1, 2005. On June 29, 2005, the County Board of Commissioners (co-sponsors of the West Eugene Enterprise Zone) approved a version of the interim local criteria that did not include the council-supported cap on the amount of the tax exemption relative to the number of jobs created. The council subsequently, on June 29, 2005, approved a motion that directed the City Manager to withdraw the zone application, or to take steps necessary to terminate the City's sponsorship of the zone. The council also provided direction to begin working with the County on a mutually agreeable application for designation next year. A request to the State for withdrawal of the City's zone application was made on June 30, 2005. The State subsequently informed the City that the zone became effective on July 1, 2005, and encouraged the City and County to take time to discuss differences. The State requested an update on the progress of discussions between the City and County by July 15, 2005. Representatives from the City and County recently met to work on interim local criteria that would be acceptable to both parties. On July 12, 2005, Lane County Board of Commissioners approved a board order that would establish interim local criteria (Attachment A). However, the approved criteria departed from the City and County discussions leading up to the County's July 12 action. The primary point of departure is related to the inclusion of existing jobs (job retention) in the calculation of the $30,000/job cap on the tax exemption benefit, and the addition of"job retention" as one of the conditions under which the cap could be waived by the co-sponsors. Examples of how the proposed interim Public Benefit Criteria, and the proposed cap, would impact different-sized companies are included in Attachment B. The impact of the County's addition of job L:\CMO\2005 Council Agendas\M050718\S0507184.doc