CC Minutes - 06/27/05 Mtg - Laserfiche WebLink

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3. ACTION: Adoption of Resolution 4845 Establishing Interim Local Criteria Applicable in the Proposed West Eugene Enterprise Zone and Adopting a Public Benefit Scoring System City Manager Taylor stated that Denny Braud from the Community Development Division of the Planning and Development Department would speak on the interim recommendations for community standards in the event that an Enterprise Zone should be designated in the City of Eugene. Mr. Braud recalled that the City Council provided direction in April to submit an application to the State of Oregon for designation of a new Enterprise Zone (EZ). He said the City had yet to receive notification but staff was optimistic that it would be so designated. He stated that the council directed staff to bring back an interim policy regarding additional local criteria and it had been anticipated that this would transpire after the City heard word from the State. Given that the council intended to have this policy in place before July 1, it had been decided to proceed with proposal of interim standards with the caveat that it was as yet unknown whether the zone would be designated. He related that the council directed staff to bring back the 1997 public benefit criteria as an interim policy which has been adjusted to reflect that 25 percent of the exemption would be subject to it, formerly 15 percent. Mr. Braud stated that the council also supported the establishment of a cap on the amount of the tax exemption per new job created and the expectation was that the cap would be adopted prior to July 1. He noted that Councilor Bettman previously proposed a $30,000 cap. He said at this point it was important to recognize that the County was a joint sponsor in this effort and needed to pass a mirror image resolution adopting the local criteria and supporting the cap of $30,000. He related that the Lane Board of County Commissioners had taken action in April to support that approach but had not discussed a specific dollar amount for that cap. He stated that the County staff recommended support, but it was not yet known whether the commissioners would support the $30,000 amount. Mr. Braud said if designated by the State, the zone would be in effect on July 1, but should the City and the County not agree on the criteria, the zone would be in place without clear direction for the criteria applicable to it. He conveyed staff's recommendation for approval. He anticipated bringing back a recommendation for a public involvement process that would move into the adoption of permanent job quality standards for the program. He expected that the public process would involve some community members in a committee of some sort that would make a recommendation to the City Council as soon as possible regarding permanent standards. Councilor Poling asked if the cap per employee was considered interim. Mr. Braud replied that nothing was permanent because at any time, the City and County acting jointly could change any part of the cap. Councilor Taylor asked what the average county wage was. Mr. Braud replied that it was approximately $29,000 per year. Councilor Taylor averred that giving points for provision of the average county wage or even 115 percent of the average county wage was still not enough to live on in the city of Eugene. She asked why the City would be giving points for such a wage. In response to another question from Councilor Taylor, Mr. Braud said it took 80 points to get the full tax exemption. Councilor Taylor opined that it was an easy number to get to. She observed that one barrier was low- and moderate-income and commented that she could not imagine anyone asking for a job that "only pays $30,000" per year unless they already had a low or moderate income. MINUTES--Eugene City Council June 27, 2005 Page 7 Regular Session