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3.ACTION: <br /> <br />Resolution 4851 Establishing Interim Local Criteria Applicable in the West Eugene enterprise <br />zone and Adopting a Public Benefit Scoring System; And Repealing Resolution 4845 <br /> <br />Councilor Poling, seconded by Councilor Solomon, moved to adopt Resolution 4851 <br />establishing interim local criteria applicable in the West Eugene enterprise zone and <br />adopting a public benefit scoring system; and repealing Resolution 4845. <br /> <br />Mayor Piercy explained that this was the proposal she had taken to the Lane Board of County <br />Commissioners in the hope that it would move forward with a compromise position. She said the Board of <br />Commissioners supported it and expressed hope that the council would as well. <br /> <br />Mayor Piercy called on the council for questions and comments. <br /> <br />Councilor Bettman asserted that in the proposal and the examples cited in the Agenda Item Summary (AIS) <br />and The Register-Guard, $4.4 million would be refunded. She asked which zone sponsor would receive this <br />payment. She alleged that the County had, in 1997, insisted it receive 50 percent of the refunded benefit, <br />though it contributed only 10 percent. <br /> <br />Denny Braud of the Planning and Development Department explained that the payment in lieu of taxes <br />would come as a public benefit contribution similar to the public benefit contribution made under the public <br />benefit criteria. He further clarified that per the resolution, 40 percent would be distributed to the County, <br />40 percent would be distributed to the City, and 20 percent would be distributed to the education-related <br />fund. <br /> <br />Councilor Bettman asked what percentage of its revenue the County was foregoing compared to the City. <br />Mr. Braud replied that it was based on the tax rate in that the City paid approximately $7 per $1,000 and <br />the County paid approximately $2 per $1,000 of real value. He stated that the breakdown of the public <br />benefit was in the exhibit that held the public benefit criteria. <br /> <br />Councilor Bettman opined that it was a “good deal for the County.” <br /> <br />Councilor Bettman recalled that Hynix had a layoff during its previous upgrade and asked if the company <br />would get credit for hiring back a laid off work force as if it the jobs were newly created. Mr. Braud replied <br />that this would not be possible; only jobs that had previously not existed qualified for the credit. <br /> <br />City Attorney Glenn Klein concurred with Mr. Braud. <br /> <br />Councilor Bettman averred that Hynix had, in 1995, indicated that its Phase 2 development would be an <br />investment of $2 billion, but it was now projected to cost $500 million. She postulated that on an <br />investment of $2 billion the job cap would become moot. Mr. Braud responded that the mathematics was <br />complicated because one needed to factor in depreciation. Councilor Bettman remarked that depreciation <br />usually kicked in after the zone had expired and the taxes were due. <br /> <br />Councilor Ortiz indicated her support for Mayor Piercy’s resolution. She remained unhappy with the <br />resolution as it stood. However, she had consulted her constituents and they were, by and large, in support <br />of something that brought more jobs to the community. She observed that many people in her neighborhood <br /> <br /> <br />MINUTES—Eugene City Council August 8, 2005 Page 7 <br /> Regular Session <br /> <br />