Item 3: West Eugene Enterprise Zone Boundary Amendment 2

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ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Action: West Eugene Enterprise Zone Boundary Amendment Meeting Date: October 22, 2012 Agenda Item Number: 3 Department: Planning & Development Staff Contact: Denny Braud www.eugene-or.gov Contact Telephone Number: 541-682-5536 ISSUE STATEMENT The council is asked to consider a resolution that would expand the boundary of the West Eugene Enterprise Zone. BACKGROUND The Oregon Enterprise Zone program is a state program established by the legislature in 1985 for the primary purposes of job creation, encouraging new investment, diversification, and competitiveness. The existing West Eugene Enterprise Zone (WEEZ) was designated in 2005 and is jointly sponsored by the City of Eugene and Lane County. The program offers a three-year property tax exemption for new buildings, renovation and expansion of buildings, and equipment investments made by qualified businesses located within a designated area defined by the zone sponsor. The exemption is designed to encourage new investment via a short-term exemption, with the long-term goal of job creation and increasing tax revenue for taxing districts following the exemption period. A qualified business is basically a (non-retail) manufacturing, processing, call-center, headquarters, distribution, or warehousing business that will increase its base employment by at least 10 percent. The WEEZ designation expires in 2015. Two major brewery investments by Oakshire Brewing (207-225 Madison St.) and Hop Valley Brewing st Co. (990 W. 1 Avenue) are being proposed just north of the existing WEEZ boundary. Both companies have requested consideration of a minor WEEZ boundary amendment that would allow their projects to utilize the WEEZ program. The combined new investments are expected to reach approximately $10 million with 20 new jobs created initially. The proposed new investments will help advance the Regional Prosperity Economic Development Plan goals regarding job creation and reduced unemployment. Additionally, continued growth of the region’s brewing industry strongly supports the economic “regional identity” goals expressed in the Economic Development Plan. The proposed boundary amendment includes the Oakshire site, Hop Valley site, adjacent properties that could be used for their future expansions, and other adjacent properties currently being used for eligible business activities defined in the enterprise zone program. The Hop Valley property and adjacent parcels proposed in the expansion are zoned I-2 (Light-Medium Industrial). The Oakshire property and a majority of the adjacent properties are zoned S-W (Whiteaker Special Area Zone). The property immediately to the north of the Oakshire property is zoned I-2. The proposed expansion area was included in the former West Eugene Enterprise Zone which expired in 1997. S:\CMO\2012 Council Agendas\M121022\S1210223.doc