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Mayor Torrey supported Option 2. He stressed that it was the only option that gave money directly <br />to the local school districts. He acknowledged that Hynix was not interested in that option but <br />urged the company to become interested. <br />Mayor Torrey expressed his dissatisfaction that Hynix had not hired local employees to do the <br />retooling work it was involved in. He commented that Hynix should recognize that being part of a <br />good neighbor organization also meant that it took advantage of the local employment base. <br /> <br /> Mr. Kelly, seconded by Mr. Pap~, moved to deny Hynix's waiver request and <br /> to direct the City Manager to return to the council, after spring break, with a <br /> work session designed to present options for establishing programs to <br /> enhance economic development in Eugene through such activities as job <br /> creation and retention and funding City infrastructure needs. Options to <br /> finance these programs shall include use of the majority of the dollar amount <br /> of the City's future share of tax revenue generated by Hynix's new <br /> investment. <br /> <br />Mr. Kelly noted that the City was looking at a $1.5 million budget shortfall in the General Fund for <br />the upcoming year. He said the money provided by Hynix's new investment could help fill that <br />gap. He reiterated his interest in broad economic development and stressed that money was <br />needed to implement any staff ideas on that subject. <br /> <br />In response to a question from Mr. Pap~ regarding what Hynix had paid in property taxes, Mr. <br />Braud said that, for the current year, Hynix had paid $5.9 million. He added that an equivalent <br />amount was projected for the next year. <br /> <br />Mr. Pap~ noted that Hynix had provided substantial funds to the community in addition to providing <br />a large number of jobs. He said the best incentives for economic development were tax <br />abatements. He said he would oppose the motion in favor of Option 2. <br /> <br />Mr. Farr commented that the wages of the Hynix employees were also going back into the <br />community. He stressed that small businesses in the community got a benefit from the presence <br />of Hynix. <br /> <br />Mr. Meisner said he would support the motion. He stressed the importance of a very broad <br />economic development strategy and commented that it was time to look beyond a single <br />employer. <br /> <br />Ms. Nathanson noted that Hynix provided 650 jobs to the community in addition to 338 full-time <br />contract workers that were not employed by the company. <br /> <br />Mayor Torrey said the key element of the proposal was the guarantee that the 650-job minimum <br />would be in place for three years. He said the money would be set aside and put into an escrow <br />account and if Hynix did not meet all of the conditions all of the tax money came immediately back <br />to the City. He said the community was well-served by that guarantee. <br /> <br />Mr. Kelly said that the taxes were small amounts to Hynix and big money for the City. He stressed <br />that the money could be used for economic development. <br /> <br />MINUTES--Eugene City Council February 20, 2002 Page 7 <br /> Work Session <br /> <br /> <br />