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1. BUILDABLE LANDS INVENTORY THE PROBLEM In the context of economic development, land is a fundamental input for new and growing firms. Land provides the physical foundation upon which buildings are constructed and the production process occurs. To be effective, communities must have an available supply of development-ready land--appropriately zoned and with existing utilities and services--and existing buildings to accommodate the needs of business. In the context of Oregon's land use laws, expanding developable land supply is possible, but it is not easy. Local jurisdictions must balance demand for developable land with demand for open space and environmental quality. State laws prescribe processes to determine if a City can expand its supply of developable land. A key step in that process is a strong argument that the City lacks a 20-year supply of buildable land. A City cannot make that argument without a thorough understanding of its supply and demand for land. The Committee found a diversity of opinion regarding the need for land. Many Committee members argued that there is an inadequate supply of commercial and industrial land, and the supply of buildable land is dwindling. The Committee did agree that no change to the land supply can be made without a better understanding of the facts. The Committee agreed that there is a lack of agreement about the true supply of commercial and industrial land in the City of Eugene. SOLUTIONS The primary response to land supply issues is to maintain a supply of commercial and industrial land that meets Oregon land use planning laws and goals and supports community economic development goals. RECOMMENDATION The City Council should support and contribute to a regional buildable lands analysis of available commercial and industrial land that is consistent with state requirements and that earns broad public support. The inventory should include vacant and underutilized land, and identify the potential for assembling small parcels to create larger parcels. 2. LAND USE CODE THE PROBLEM Local governments and their policies affect the costs of doing business by providing infrastructure and services, and through regulations, taxes, and incentives. The City of Eugene's land use code is the City's primary regulatory tool that affects businesses. Regulations exist to maintain the health, welfare, and safety of a community. They are designed to make buildings safer, the air cleaner, Page 8 Recommendations July 2004 Mayor's Committee on Economic Development