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In response to a comment from Mr. Bowerman regarding whether there would have been benefit regardless of the program, Mr. Wanichek said he was convinced of the positive results of the economic program. He said Hynix was the largest tax payer in the City. Ms. Rygas stressed the importance of increasing the number of living wage jobs. She said giving tax incentives required verifying that the companies would provide those jobs. She raised concern that the criteria were not adequate to address the question of median wages. She stressed that Economic Development programs needed to be held to the standard adding to the public benefit. Ms. Pierce said family wage jobs were not the only thing beir~g sought. She said any job would add to the public benefit and said she knew of no reason of not moving forward. Ms. Rygas said there were only limited amounts of space for commercial development in the City. She stressed the importance of filling in that space with family wage jobs. Mr. Rexius reiterated the comments of Ms. Pierce. He added that the low wage job providers like big box stores were not allowed to participate in the program. Mr. Wanichek noted that compensation criteria had to be 'met to qualify for entrance into the enterprise zone. He said that if there was no enterprise zone there would be lower wage than family wage jobs. He reiterated an enterprise zone would attract higher paying jobs that would not be there without the program. In response to a question from Mr. Kahle regarding whether development had slowed after Eugene's zone had expired, Mr. Braud showed maps of the old zone boundaries. He said that industrial construction had been stagnant since then but noted that this was more of'a national ~rend and was no only related to tax incentives. Ms. Rygas said it was hard for her to understand why other additional criteria were not being considered. She suggested a more thorough look at additional criteria. Mr. Forbes suggested adding a three year review for the motion. Mr. Braud said discontinuing a ten year enterprise zone after three years would inhibit the chances of getting a new enterprise zone in the future. ' ' Mr. Bowerman noted that those who had participated in th¢ gone would not like to change the rules in the middle of the game. Mr. Rexius said additional criteria would make Eugene's' zone uncompetitive since no other communities had additional criteria. Mr. Kahle said there would always be divisions in the pubiic around the perceptions of tax incentives. He suggested offering incentives based on location so that there Would be no development in green fields. MINUTES--Mayor's Economic Development Committee May 24, 2004 Page 3