CC Minutes - 02/26/99 WS - Laserfiche WebLink

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Councilors issued questions and comments concerning Mr. Whitelaw's presentation and regional economics in general. In response to a request by Mr. Johnson, Mr. Whitelaw briefly summarized what he believes is the appropriate role for local government in terms of encouraging economic activity. Mr. Whitelaw said local government should do that for which it is best suited: paying attention to public activities and services as opposed to recruiting and offering subsidies. Mr. Whitelaw stated that in general, recruiting creates a "perverse" division between recruited firms and existing firms because cities do not always make available to existing firms those benefits it provides to recruited firms. He said this places existing firms at a disadvantage. Mr. Kelly inquired as to Mr. Whitelaw's opinion concerning the role of local government in matters of affordable housing. Mr. Whitelaw stated that the more attractive an area is to households, the more likely people will want to live there. This drives up housing costs and drives down wages. The only option for curtailing growth is to make an area unattractive. Mr. Meisner requested that Mr. Whitelaw discuss cycles versus trends with regard to subsidies. Mr. Whitelaw stated that when considering subsidizing a business, a city should ask itself whether the business will succeed independent of the subsidy. If success following the expiration of the subsidy is questionable or unlikely, the city should not subsidize the company. In response to a question from Mr. Meisner, Mr. Whitelaw advised the City against becoming involved in job creation as a function of government. He expressed support for the City focusing on infrastructure-related matters. He said a strong infrastructure will attract jobs. Mr. Torrey commented that the compensation level of University of Oregon graduates are the lowest of any Oregon school and a considerable number of individuals earn minimum or just above minimum wage. Noting that elementary school populations are decreasing in the Eugene area and growing in the Bethel and Creswell areas, Mr. Torrey inquired as to how Eugene should address the service demands of those who live outside the city limits. Mr. Whitelaw stated that the issue raised by Mr. Torrey was enormous. He said there are a number of terms used to describe the dichotomy or tension that Mr. Torrey spoke to; however, there are no easy solutions. Mr. Whitelaw said the dichotomy, which consists of political, economic, and ecological issues, will become more severe as Eugene continues to grow. Noting that it appears Cottage Grove has considerable capacity for new industry, Mr. Torrey said he would like to support the siting of business there; however, he inquired as to whether Cottage Grove should compensate Eugene for the basic support that is needed to support Cottage Grove's growth. Mr. Torrey inquired how Eugene might address this issue in a meaningful way. Mr. Whitelaw said that although the issue is extremely complex, there are ways to quantify some dimensions of basic support requirements. He said the various units of government should initiate the conversation early and continue the discussion for a number of years. Mr. Whitelaw said many local governments have struggled with this issue. II. LOCAL YOUTH ISSUES Mr. Johnson introduced Looking Glass Director Jim Forbes and briefly described the services provided by Looking Glass. Minutes--Eugene City Council February 26, 1999 Page 2 Goals Process Session