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The Hynix request results in foregoing about $2.4 million over three years, revenue that would go <br />to the City's General Fund. I'rn interested in looking at two alternatives to that proposal Each of <br />these should meet the objective of supporting jobs and a healthy economy. Each would be a <br />temporary program, for the same period of time - three years - and with a value equal to the <br />proposal from Hynix. <br />Option 1: Do not grant the waiver. Instead, use the revenue collected for a local economic <br />development program. Half to fund improvements that benefit job retention and creation, such as <br />brown field cleanup and redevelopment, local business grants and loans, and other activities <br />associated with an economic development program. The other half for funding permanent City <br />infrastructure improvements, such as utility upgrades, street and sidewalk repair and lighting. <br /> <br />Option 2: Grant a partial waiver using funds to support Hynix jobs and the community. Haft to <br />support Hynix's plant upgrade, as theyVe requested. Use the balance to fund either (a) <br />improvements and program as described in Option 1, and/or (b) City expenses supporting schools <br />and kids, such as measures to increase school safety, and after-school and evening programs for <br />youth and community events. <br /> <br />Ms. Taylor stated that she was opposed to the requested waiver; however, she supported Ms. <br />Nathanson's proposals. Ms. Taylor stated that the City of Eugene was not responsible for <br />supporting businesses that cannot otherwise succeed. In addition, Ms. Taylor stated that Hynix <br />was responsible for a significant portion of local unemployment. <br /> <br />Mr. Rayor expressed support for granting the requested three-year waiver as one means by which <br />the City can reduce the risk to local jobs. <br /> <br />Mr. Meisner stated that the City should not and, in fact, cannot guarantee the profitability of any <br />business. Noting that he was concerned about the possible loss of employment that could result <br />if the City does not grant the requested waiver, Mr. Meisner expressed support for Ms. <br />Nathanson's Option 1. <br /> <br />Noting that she would oppose Hynix's requested waiver, Ms. Bettman suggested scheduling a <br />work session to consider a broad range of options. She said Hynix is part of a volatile industry <br />and a waiver granted by the City of Eugene will not "make or break" Hynix or the industry as a <br />whole. Ms. Bettman stated that if Hynix does succeed, it will be able to pay its fair share of <br />infrastructure in the community. <br /> <br />Noting the complexity of the issue at hand, Mr. Kelly stated that he would support granting some <br />form of a waiver if Hynix was proposing to add new jobs. Mr. Kelly stated that because Hynix was <br />not adding jobs, the enterprise zone philosophical basis did not clearly apply in this case. He said <br />he supported the concept of Ms. Nathanson's Option 1 because it defines terms and criteria for <br />assisting local businesses. Mr. Meisner suggested that the City Council discuss Option 1 during <br />its April work session regarding economic development. <br /> <br />Mayor Torrey stated that he would support granting a waiver that does not exceed two-thirds of <br />Hynix's tax break. He suggested collecting and holding Hynix's paid taxes and, if Hynix maintains <br />an acceptable employment level, granting the requested waiver at that time. Mayor Torrey noted <br />that Hynix has paid more than $5 million in taxes to the City of Eugene. He said local schools are <br />in need of that tax money. <br /> <br />MINUTES--Eugene City Council January 30, 2002 Page 4 <br /> Work Session <br /> <br /> <br />