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Ms. Rygas recalled presenter Jack Roberts' comments that it was great to help local businesses <br />but they were part of a natural business cycle, and his emphasis on the importance of bringing <br />traded jobs into the community to create actual growth. She asked Mr. Bowers to reconcile those <br />comments with his remarks about business attraction. Mr. Bowers said he did not agree; he <br />believed new dollars came in when the City helped existing businesses that were export <br />businesses or that created new businesses. He agreed as to the importance of helping <br />manufacturers create traded jobs, but did not think that had anything to do with whether such <br />businesses were locally based or attracted to the community. <br /> <br />Citing Hynix as an example, Ms. Rygas asked Mr. Bowers to discuss whether the community <br />dissention about who to assist was a matter ofpercepti, on or reality, and what the current policy <br />was. Mr. Bowers did not know the City's current policies. He said it was his perception that <br />most municipalities say they will help local businesses, but all the resources were pulled out <br />when a large business came along. He said that was the reality of the situation. In the case of <br />Hynix, Eugene did not seek the company but had little choice when the company came to it. He <br />suggested that an inexpensive way to assist local businesses was through the reestablishment of <br />the Business Assistance Team. He further recommended that the budget for economic <br />development be split between business retention and business recruitment on a 90/10 basis. <br /> <br />Mr. Proudfoot determined from Mr. Bowers that the State established the base benefits <br />associated with enterprise zones, but cities could add othe~:s. <br /> <br />Local realtor/developer Hugh Prichard shared his thoughts on economic development. He <br />indicated the materials he had sent out earlier were focused on downtown. He emphasized the <br />collaborative nature of successful projects in and around downtown. He concurred with the <br />remarks of Mr. Bowers regarding bonding against urban renewal. <br /> <br />Mr. Prichard made the following points: <br /> <br /> · The community has a lower-than-average median wage and that has not improved <br /> over time, which serves as a disincentive for businesses seeking to locate in <br /> Eugene as they do not believe they will have a sufficiently sized local market <br /> · Local banks are reluctant to invest in projects that they have no comparisons for, <br /> such as the Lincoln School Apartments <br /> · Companies such as Van Star locate in Eugene to take advantage of its educated <br /> and inexpensive labor force <br /> · Companies are more able to afford Eugene's commercial rents if they have a <br /> regional or national market <br /> · Eugene should support its research-related and medical businesses as ~hose <br /> opportunities were growing and paid more than the minimum wage <br /> · Eugene should support its government sector jobs because they also pay well <br /> <br />MINUTES--Mayor's Committee on Economic Development April 20, 2004 Page 7 <br /> <br /> <br />