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EUGENE CITY COUNCIL AGENDA ITEM SUMMARY Work Session: Economic Development Committee Recommendations Regarding an Enterprise Zone Meeting Date: September 29, 2004 Agenda Item Number: C Department: Planning and Development Staff Contact: Tom Coyle www. cl. eugene, or. us Contact Telephone Number: 682-6077 ISSUE STATEMENT A work session regarding the Economic Development Committee recommendations is scheduled on September 29, 2004, to review issues related to the recommendation specific to Enterprise Zone tax exemptions. The council is asked to direct staff to proceed with application to the State of Oregon to establish an Enterprise Zone. BACKGROUND On August 9, 2004, the four primary recommendations of the Mayor's Committee on Economic Development were presented to the City Council by Kathy Smith, chair of the committee. The report was accepted by the council by a vote of 7-0. Motions related to specific recommendations were postponed with a request that additional work sessions be scheduled in the fall to further examine the specific issues. The Economic Development Committee's Enterprise Zone recommendation received an 11-0 vote in support of the following recommendations: · Establish an enterprise zone in Eugene · Consider a boundary similar to the previous West Eugene Enterprise Zone (Attachment A) · Provide the maximum tax exemption benefit (100%) for redevelopment, infill, and brownfield investments in order to meet the City' s sustainability goals · Limit the tax exemption (consistent with state statutes and rules) to two-thirds for Greenfield investments · Create job quality standards for greenfield investments (consistent with state statutes and rules) that would provide an opportunity for these investments to receive up to the maximum (100%) tax exemption benefit when job quality standards are met. A staff analysis of the committee's recommendation is included in Attachment B. 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 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 L:\CMO\2004 Council Agendas\MO40929\SO40929C.DOC