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EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Action: Resolution 4851 Establishing Interim Local Criteria Applicable In the West Eugene Enterprise Zone and Adopting a Public Benefit Scoring System; and Repealing Resolution 4845 Meeting Date: August 8, 2005 Agenda Item Number: 3 Department: Planning and Development Staff Contact: Denny Braud www. eugene-or, gov Contact Telephone Number: 682-5536 ISSUE STATEMENT The council is being asked to consider a resolution establishing interim local criteria that would apply to tax exemptions granted in the West Eugene Enterprise Zone. The proposed resolution contains the same criteria as the Board Order passed by the County Commission on August 2, 2005. The County's action was based on a compromise solution presented to the board by Mayor Piercy. BACKGROUND On June 27, 2005, the council approved Resolution No. 4845, which supported the establishment of interim local criteria applicable in the proposed West Eugene Enterprise Zone. On June 28, 2005, the City was notified that its application for designation of an enterprise zone was approved by the State of Oregon, with designation of the zone effective July 1, 2005. On June 29, 2005, the County Board of Commissioners (co-sponsors of the West Eugene Enterprise Zone) approved a version of the interim local criteria that did not include the council-supported cap on the amount of the tax exemption relative to the number of jobs created. The council subsequently, on June 29, 2005, approved a motion that directed the City Manager to withdraw the zone application, or to take steps necessary to terminate the City's sponsorship of the zone. The council also provided direction to begin working with the County on a mutually agreeable application for designation next year. A request to the State for withdrawal of the City's zone application was made on June 30, 2005. The State subsequently informed the City that the zone became effective on July 1, 2005, and encouraged the City and County to take time to discuss differences. Representatives from the City and the County met to work on interim local criteria that would be acceptable to both parties. On July 12, 2005, the Lane County Board of Commissioners approved a board order establishing local criteria. The criteria in the County's action differed materially from the City's position primarily in that it included a provision for the consideration of job retention in the calculation of benefits. The City Council met on July 18, 2005, and approved a motion confirming the council's prior actions on the Enterprise Zone and the local criteria, seeking the County's concurrence with the City's position, and asking for a response from the County by July 22, 2005. In the event that the County could not L:\CMO\2005 Council Agendas\M050808\S0508083.doc