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MINUTES <br /> <br /> Eugene City Council <br /> Work Session <br /> McNutt Room--Eugene City Hall <br /> <br /> January 30, 2002 <br /> Noon <br /> <br />COUNCILORS PRESENT: Betty Taylor, David Kelly, Nancy Nathanson, Scott Meisner, Gary <br /> Rayor, Gary Pap~, Bonny Bettman. <br /> <br />COUNCILORS ABSENT: Pat Farr. <br /> <br />CITY COUNCIL WORK SESSION <br /> <br />Mayor James D. Torrey called the meeting to order. <br /> <br />A.Work Session: Hynix Enterprise Zone Tax Exemption Request <br /> <br />Referring to an agenda item summary, copies of which were included in the meeting agenda <br />packet, Planning and Development Department staff Denny Braud explained that the purpose of <br />this work session was for City Council to consider a waiver of the employment increase <br />requirement associated with Hynix's pending Enterprise Zone tax exemption pre-certification <br />request, and to consider Hynix's request for a two-year extension of the tax exemption. <br /> <br />Mr. Braud presented background information, which included that Hynix had submitted an Oregon <br />Enterprise Zone Pre-certification application on June 11, 2001, seeking a tax exemption on a <br />proposed investment of $156 million. He said the pre-certification application included a request <br />for a waiver of the ten percent employment increase requirement, and a request for a two-year <br />extension of the standard three-year exemption. Mr. Braud explained that the proposed <br />investment includes $155 million in upgraded production equipment, and a $1 million building <br />modification. <br /> <br />With regard to Hynix's request for a waiver of the ten percent employment increase requirement <br />associated with the Enterprise Zone tax exemption request, Mr. Braud stated that for investments <br />of $25 million or greater, the Oregon Enterprise Zone statutes allow local zone sponsors to grant a <br />tax exemption in-lieu-of the required ten percent increase in employment. The approval to grant a <br />tax exemption under this waiver provision must be documented by a resolution of the governing <br />bodies of the zone sponsor (City and County). Mr. Braud noted that the resolution shall specify <br />the minimum number (or minimum percentage increase in the event of limited job creation) of <br />employees that the firm must retain throughout the exemption period. He said the resolution may <br />also include other conditions that the firm must meet. Mr. Braud noted that these other conditions <br />might include such items as contributions to public infrastructure/services, community <br />involvement, in-kind donations to charities, sponsorship of local education/training, support for <br />local institutions, and other general policies. <br /> <br />MINUTES--Eugene City Council January 30, 2002 Page 1 <br /> Work Session <br /> <br /> <br />