Item B: Local Criteria for West Eugene Enterprise Zone

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EUGENE CITY COUNCIL AGENDA ITEM SUMMARY c Work Session: Resolution 4865 Establishing Local Criteria Applicable in the West Eugene Enterprise Zone and Adopting a Public Benefit Scoring System; and Repealing Resolution 4851 Meeting Date: April 10, 2006 Department: Planning and Development www.eugene-or.gov Agenda Item Number: B Staff Contact: Denny Braud Contact Telephone Number: 682-5536 ISSUE STATEMENT The council is being asked to consider the Enterprise Zone Committee's recommendation regarding the establishment of local criteria that would apply to tax exemptions granted in the West Eugene Enterprise Zone, and consider a resolution (Attachment A) establishing the local criteria proposed by the committee. BACKGROUND On August 8, 2005, the council adopted Resolution No. 4851, which established interim local criteria applicable in the proposed West Eugene Enterprise Zone (see Attachment B). The resolution provided that the City of Eugene and Lane County, joint sponsors of the zone, undertake a process to develop and adopt permanent standards and public benefit criteria. The resolution provided for the establishment of the Enterprise Zone Committee composed of two elected officials from each governing body, and a total of four community representatives, two of whom were appointed by each governing body. The resolution also provided that opportunities for stakeholder participation and community involvement, including public hearings, be included in the process. The elected officials appointed to the committee included City Councilors Andrea Ortiz and Chris Pryor, and Commissioners Bobby Green and Faye Stewart. The City-appointed community members included Claire Syrett and Rusty Rexius, and the County-appointed community members included Lou Christian and Steven Korth. The committee met on six occasions between November 2005 and February 2006. The committee also hosted a public workshop on December 7,2005, and a public hearing on January 31, 2006. Public input gathered at the workshop and public hearing was instrumental in shaping the committee's Guiding Principles for Local Standards (see Attachment C) and final recommendation. ORS 285C.150 provides that a sponsor of an urban enterprise zone may require an eligible business firm to satisfy other conditions. These conditions must be reasonably related to the public purpose of providing opportunities for groups of persons to obtain employment, and can only be imposed based on an adopted policy that establishes standards for imposition of the conditions. The standards recommended by the committee include "Public Benefit Criteria" focused in the following nine areas: 1) Small Business, 2) Health Insurance, 3) Training and Advancement Opportunities, 4) Wages, 5) Employee Benefits, 6) Redevelopment, 7) Referral Agency Hiring, 8) Construction Practices, and 9) Investment Size. Consistent with the direction from the council and County Board, 25% of the tax exemption benefit would be conditioned on these Public Benefit Criteria standards. The committee recommended a point system similar to the existing interim criteria. Companies scoring 25 points or LICMOl2006 Council Agendas1M0604101S060410B.doc