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Council session was scheduled for February 20, 2002, and the Lane County Board of <br />Commissioners was scheduled to review Hynix's request on February 19, 2002. <br /> <br />Following a brief review of City Council options regarding Hynix's respective requests, Mr. Braud <br />issued staff's recommendation, as follows: Staff recommends that the City continue discussions <br />with Hynix based on direction from the council on terms and conditions that would be acceptable <br />in granting the waiver and two-year extension. In February, staff would bring back specific options <br />for granting the waiver and two-year extension. <br /> <br />Referring to a January 30, 2002, memorandum entitled Hynix Tax Exemption Request, copies of <br />which were included in the meeting agenda packet, Mr. Braud stated that a recent meeting <br />between Mr. Kelly, Ms. Nathanson, Mayor Torrey, and staff resulted in the following proposed <br />approaches for responding to Hynix's tax exemption request: <br /> <br /> 1) approve the requested waiver and two-year extension with a commitment from the <br /> company to retain a specific number of employees during the exemption period; <br /> 2) approve the requested waiver and two-year extension with a commitment from the <br /> company to retain a specific number of employees during the exemption period, and a <br /> commitment from the company to dedicate a portion of their tax savings to specific <br /> community needs; <br /> 3) approve the requested waiver and two-year extension with a commitment from the <br /> company to retain a specific number of employees during the exemption period, and a <br /> requirement that the company pay a portion of their tax savings to the City, County, and <br /> schools. The City could use proceeds for general government or specific programs; <br /> 4) approve waiver and two-year extension with a condition that the tax exemption shall be <br /> proportional to the company's employment level; and <br /> 5) recapture a portion (or all) of the tax exemption and create a fund that supports <br /> economic development activities and is available to all Eugene businesses (including <br /> Hynix) for needs such as job creation/retention, facility upgrades, building improvements, <br /> or other uses. A portion of the recaptured funds could also be used for City infrastructure <br /> improvements. (This option was discussed only on the conceptual level, with limited <br /> discussion of the associated mechanics and legalities.) <br /> <br />City councilors issued a number of questions/comments regarding Hynix's respective requests, <br />including the following: <br /> <br />In response to a question from Mr. PapS, City Manager Jim Johnson stated that Hynix's present <br />requests were not reflected in the current budget. Referring to the five options proposed above, <br />Mr. Pap8 said he favored options 3 and 5. <br /> <br />Councilor Nathanson read into the record a written statement, as follows: Our objective should be <br />to balance the need for a healthy economy - to pay attention and do something and not simply <br />'~vorry" about it - with a responsibility to spend money wisely. If we aflocate funds toward a <br />healthy economy we need to know that whatever action we take will do that, that public money is <br />wisely spent. Are these jobs at risk, and if they are, would our actions provide certainty that the <br />jobs, as this level of salary and benefits, will remain in the community for at least several years? <br />And how does our action or inaction affect confidence in the local economy, and in the City? <br /> <br />MINUTES--Eugene City Council January 30, 2002 Page 3 <br /> Work Session <br /> <br /> <br />