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that the affected property owner would pay less in capital gains taxes because of the actions of the City, <br />which reduced the revenues subject to that tax. <br /> <br />Ms. Bettman pointed out that the school districts did not pay taxes. The districts would benefit from selling <br />their properties but they had not contributed to the cost of the City’s land use regulations. She said the <br />districts needed to contribute to those costs. She said the City could reduce property values when it took <br />action, and the opposite of that was true. <br /> <br />The vote on the substitute motion was a 4:4 tie; Ms. Solomon, Mr. Poling, Mr. Pryor, and <br />Mr. Papé voting yes, and Ms. Taylor, Mr. Kelly, Ms. Bettman, and Ms. Ortiz voting no; <br />Mayor Piercy cast a vote in opposition to the motion, and it failed on a final vote of 5:4. <br /> <br />Ms. Bettman, seconded by Mr. Kelly, moved to substitute the motion by moving to adopt <br />the ordinance. The vote on the motion was a 4:4 tie; Ms. Taylor, Mr. Kelly, Ms. Bettman, <br />and Ms. Ortiz voting yes, and Ms. Solomon, Mr. Poling, Mr. Pryor, and Mr. Papé voting <br />no; Mayor Piercy cast a vote in opposition to the motion, and it failed on a final vote of 5:4. <br /> <br />Ms. Ortiz, seconded by Mr. Papé, moved to direct the City Manager to establish a technical <br />work group made up of staff, experts, and community leaders to develop options and a rec- <br />ommendation for how the City of Eugene might best capture value when it grants increased <br />development rights to property owners. The ideal method should be fair, simple, inexpen- <br />sive, and easy to administer. The work of this group shall be completed by March 2007, in <br />time to influence the legislative decision making. <br /> <br />Ms. Ortiz did not feel as though the development of the proposed ordinance was a bipartisan effort, and she <br />would like to see people working together more, and for that reason supported the motion. <br /> <br />Mr. Kelly was disappointed the council was unwilling to take definitive action on something with an impact <br />on the City’s ability to plan. Every time the council took a step toward a failure to plan, it made the City’s <br />growth management policies more irrelevant. <br /> <br />Mr. Kelly indicated he would support the amendment to the motion as preferable to the main motion. He <br />hoped to be, but did not expect to be, pleasantly surprised by the results of the State legislature. <br /> <br />Mr. Papé wanted to know the logistics of the proposed work group. Mayor Piercy indicated that no detail <br />was behind the proposal at this point. Mr. Papé indicated support for the motion. <br /> <br />Mr. Poling questioned if the predetermined outcome of the work group was a value-added tax, because if it <br />was he could not support the motion. City Manager Taylor anticipated that the work group would discuss <br />how to make the ordinance work in a way that met some of the concerns raised by those who had reviewed <br />the draft ordinance from different perspectives. Mr. Poling asked what would happen if the work group <br />could not agree on the ordinance. Would the manager get another technical work group? He reiterated that <br />if the council was establishing a work group with the specific goal of a value-added tax, he could not <br />support it. <br /> <br />Ms. Bettman asked the maker and second of the motion to accept a friendly amendment that should the work <br />group not have a remedy, the ordinance would be reconsidered for adoption. Ms. Ortiz and Mr. Papé agreed <br />to accept the friendly amendment. <br /> <br /> <br />MINUTES—Eugene City Council December 11, 2006 Page 10 <br /> Work Session <br /> <br />