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HomeMy WebLinkAboutCCMinutes - 10/11/04 WS MINUTES Eugene City Council Work Session McNutt Room--Eugene City Hall October 11, 2004 5:30 p.m. COUNCILORS PRESENT: George Poling, Bonny Bettman, Nancy Nathanson, Scott Meisner, David Kelly, Betty Taylor, Gary Papd Jennifer Solomon. Mayor James D. Torrey called the meeting of the Eugene City Council to order. He noted that Ms. Nathanson would participate via speakerphone. A. ITEMS FROM MAYOR, COUNCIL, AND CITY MANAGER Ms. Nathanson had no items. Mr. Meisner had no items. Mr. Kelly corrected what he considered an erroneous headline and lead paragraph in an article in the October 10, 2004, edition of The Register-Guard, which indicated the new police headquarters would be built whether or not Ballot Measure 20-88 was passed. While the council would need to discuss next steps if the measure failed, it was not a foregone conclusion that the City would build the police headquarters. At that time, the council would have to discuss next steps for the best use of the money in question and the effect of the failure of the measure in relationship to the overall vision for downtown and the need for a new city hall. There was also the question of whether the council would be perceived as honoring the will of the voters if it proceeded anyway, and if the City would want to build a police station with no expansion space, which would be the case if the measure failed and the council went forward. Ms. Taylor had no items. Mr. Pap6 reported that on October 10 he attended a tree planting event sponsored by the Eugene Tree Foundation at Gillespie Butte, kicking off a historic tree program. He said those interested in having their tree designated as a historic tree should log on to the foundation's Web site, where an application form was available. He expressed appreciation for the cooperation of Urban Forester Mark Snyder and the Public Works Department in putting on the event. Ms. Bettman commended the Lane County Public Health Department for its response to the public health crisis created by the lack of flu vaccine. She said the issue could get worse if no supplies were produced. The health clinic was reprioritizing those eligible for a vaccine shot. She urged those at high risk to get a vaccine, and asked those who were not at high risk to pass on the shot so that more vaccine would be available for those at higher risk. Ms. Bettman said that several City committees had been formed in past years to look at the issue of homelessness in Eugene and each had developed a set of recommendations. She noted the Human Rights Commission planned a presentation on the status ofhomelessness in the community. She asked when that MINUTES--Eugene City Council October 11, 2004 Page 1 Work Session would occur. Ms. Bettman asked if the information from that presentation, in conjunction with a list of past recommendations, could be provided to the council as she wished to determine if there was sufficient council support for a work session on the topic. Ms. Bettman expressed concern about the cost of the City's new cable television program. She termed it a public relations program and said the money could be better spent in other areas. She suggested the funding would be better spent telecasting other advisory committee meetings, such as the Planning Commission and Police Commission meetings. Ms. Bettman alerted the council that on October 15, 2004, the Metropolitan Policy Committee, acting as the local metropolitan planning organization, was hosting a summit for State metropolitan planning organiza- tions at the Eugene Library. All were welcome to attend. Mr. Poling had no items. City Manager Taylor had no items. B. WORK SESSION: PeaceHealth/West University Area Transportation Planning City Manager Dennis Taylor introduced the item. He said staff had held some conversations with PeaceHealth representatives about transportation issues in the vicinity of the hospital's Hilyard campus. He said that Chris Henry of the Public Works Department was present for the item. Mr. Henry introduced PeaceHealth representatives Alan Yordy, Brian Terrett, and Philip Farrington, who were present to discuss transportation plans for the Hilyard campus area. Mr. Henry said PeaceHealth had been working on plans for the redevelopment of the campus, and some of those plans could have implica- tions for the surrounding transportation system. Ms. Solomon arrived at the meeting. Mr. Yordy introduced the presentation by providing some context, saying that even with PeaceHealth's proposed move to the RiverBend campus, the Hilyard Street campus would remain an integral part of hospital operations. He envisioned a robust campus with 1,500 to 1,800 employees. Planning for that redevelopment was just beginning. Mr. Yordy emphasized the high level of growth in use at the Hilyard campus and said PeaceHealth continued to experience high census days at the Hilyard campus, which meant that patients were moved around and held in various places as staff waited for beds to become available. The community's mental health treatment capacity was a major issue, and PeaceHealth had the only mental health inpatient facility, forcing PeaceHealth to send patients to other facilities where open beds existed. In addition, neonatal patients were also frequently transferred to other facilities. He envisioned that some of the pressure on the Hilyard campus would be absorbed by development at the former Sony facility in Springfield, the RiverBend Annex. Mr. Yordy envisioned that the campus would have a 24-hour urgent care facility. He acknowledged the concern of south Eugene residents about their access to emergency care, and said whatever the outcome of the hospital relocation issue, he pledged to work with the City and other interested parties to ensure that there was adequate emergency access south of the Willamette River. MINUTES--Eugene City Council October 11, 2004 Page 2 Work Session Mr. Yordy noted that the University of Oregon and PeaceHealth, the community's two largest employers, were located within one block of each other. He said that historically, that relationship was underleveraged, and he believed that over time the council would see increasing efforts at collaboration between the two organizations. He noted the first announced formal collaboration between the two parties, the Oregon Heart and Vascular Institute. Mr. Yordy hoped that effort was the first of many such collaborative efforts between the two entities. Mr. Yordy anticipated that PeaceHealth would spend approximately $60 million, commencing in 2008, on the redevelopment of the Hilyard campus, which would include demolition of some existing buildings and construction of new buildings. He asked the council to consider some of the transportation and infrastruc- ture needs for the area. Mr. Farrington provided a PowerPoint presentation on existing transportation conditions in the area of the Hilyard campus. He used a map of the area to point out structures on the campus not meeting seismic standards that must eventually be replaced but noted the lack of space to accommodate expansion, or what he termed an "empty chair" for growth. Mr. Farrington said that was a continuing problem for Peace- Health. Removal of the oldest portions of the campus provided room for expansion. Mr. Farrington noted the lack of short-term parking to serve the campus area. He said PeaceHealth hoped to include some short-term parking in the short-term. Mr. Farrington described some of the problems that existed in the transportation system, citing as one example the one-way street system, which confused people, particularly those from outside the community. He said better lighting and better pedestrian access was needed in the area to serve the foot traffic accessing the university and hospital. There was little signage to assist visitors. He said that PeaceHealth hoped to improve access not only to its facilities, but to other institutions, residents, and businesses in the vicinity. All would benefit from the concepts PeaceHealth hoped to explore. Mr. Farrington noted that PeaceHealth hoped to explore whether circulation could be improved by breaking up the street grid and providing multiple access points along 13th Avenue, for example, if only for a single block. He referred to Alder Street and termed it the "street that time forgot" as it did not meet any City standards for a street with its classification and was a challenge in terms of access. He hoped there could be a focus placed on that street. Speaking to the issue of increased access points on 13th Avenue, Mr. Yordy pointed out that currently, ambulances exiting from the emergency area must now turn left onto that street and were forced to navigate a very busy University area. He said that an additional short, one-block westbound lane would minimize the ambulance circulation problem. Mr. Farrington added that whether a second lane was needed for southbound or two-way traffic was something PeaceHealth would like to discuss with its neighbors. Mr. Farrington briefly reviewed PeaceHealth's conceptual plan for the Hilyard campus, emphasizing the tentative nature of the plan. Mr. Farrington reviewed various points of collaboration between the City of Eugene and PeaceHealth, reminding the council that PeaceHealth provided space for the West University Neighborhood police substation at no cost. PeaceHealth had acquired the alleyway between Hilyard and Alder streets and worked with the City on improvements to the alley. He said PeaceHealth would invest considerable money into the campus, helping the community to leverage funding for needed improvements for infrastructure investments. MINUTES--Eugene City Council October 11, 2004 Page 3 Work Session Mr. Farrington said PeaceHealth hoped to work with the City on improved access to and linkages from the campus area and wanted to discuss dedication of the land needed for an additional lane on 13th Avenue and possibly along Alder Street. He said PeaceHealth hoped to propose possible additions to the Capital Improvement Program (CIP) project list to the City for which it could seek County Road Fund dollars. Mayor Torrey solicited council comments and questions. Mr. Kelly thanked PeaceHealth for its presentation. However, he expressed dismay at the lack of information accompanying the Agenda Item Summary (ALS). He said it would have been useful to have the presentation information ahead of time. Mr. Kelly noted his residence in the neighborhood in question and indicated his appreciation of Mr. Farrington's remarks about the existing street system and ambulance access. He agreed it was a challenge to drive in the area the closer one got to the University of Oregon. Mr. Kelly also expressed appreciation that PeaceHealth planned to work with the surrounding property owners and businesses on changes to the transportation system. He said those changes would affect all the surrounding properties. Mr. Kelly said he would be looking for the neighborhood ';buy-in" from the Northwest Christian College, University of Oregon, residents, and the retail merchants in the area. Mr. Kelly asked for more information about the concept of altering the pedestrian flow in the area, saying a more detailed diagram illustrating the current and proposed flow would help him to evaluate the proposal. Mr. Kelly expressed concern about the potential use of County Road Funds for the project. He said it would be very hard to argue for funding for new projects after arguing with the County for more funding for road preservation and maintenance funding. Mr. Meisner also expressed appreciation for the presentation. He said it appeared PeaceHealth had looked at what was needed to make the area workable. He agreed that Alder Street was substandard as currently configured and the hospital's suggestions for improvements seemed workable. He said he had witnessed the problems experienced by ambulances as they tried to leave the hospital, so that idea made sense to him as well. Mr. Meisner said that regardless of whether County Road Funds were needed for maintenance and operation, the County had not been forthcoming in providing them, and it seemed perhaps the obvious place to go for funds for the improvements being proposed as several members of the Board of County Commis- sioners had made clear their preference for funding discrete projects. Mr. Meisner asked about long-term plans for the Oregon Medical Laboratory (OML) building if that building was vacated by the current use. Mr. Yordy said in the short-term, the building would be used for administrative functions that were now housed in space that could be licensed and used for clinical needs. In the long term, the fate of the building was still open. He said PeaceHealth wanted to come before the council tonight to give it a clear picture of some of what was contemplated. The planning process would start in earnest soon, and PeaceHealth wanted to ensure the council was aware of the implications to the transportation infrastructure before that time. Mr. Yordy noted that the OML building was a stick-built wooden structure with a limited useful life. The hospital was considering the building in terms of its proximity to the Bus Rapid Transit (BRT) stop located at 11th Avenue and Hilyard Street and discussing the potential of redevelopment as a small mixed-use area containing a variety of clinical and other uses. He MINUTES--Eugene City Council October 11, 2004 Page 4 Work Session thought the comer would become more robust in terms of activity. Ms. Bettman agreed that circulation and access in the neighborhood were presently in need of improvement regardless of future conditions. She asked to what extent City staff had been thinking about the area and what would work there, and if PeaceHealth had worked with staff on the recommendations. Mr. Yordy said that the concepts presented were preliminary concepts developed by PeaceHealth staff. He did not represent the plans as being agreed to with the City. Referring to PeaceHealth's suggestion for changes to 13th Avenue, Ms. Bettman questioned how long PeaceHealth anticipated ambulances would be accessing that area after the emergency room was moved. Mr. Yordy said there would never be a time when ambulances did not use the entrance off 13th Avenue for something. He anticipated there would be fairly regular traffic between the RiverBend and Hilyard campuses, and the corridor would be continue to be used by ambulances and transport vehicles transporting patients. Ms. Bettman determined from Mr. Yordy that some buildings on the site would be demolished and converted to temporary surface parking. Mr. Yordy said the east side of the campus would be the %mpty chair" for future development, and he anticipated there would be new buildings on that portion of the property within ten years. Mr. Farrington said the existing parking structure would stay in place. Ms. Bettman applauded PeaceHealth's effort to redevelop the site, as she thought it was needed. However, she believed there was a need for another parking structure that would only increase with the redevelopment in the future. She did not think surface parking was a good use of the land, particularly in the neighborhood in question, and the parking would not meet the need that would exist. In addition, such parking lots could become attractive nuisances to the neighborhood after business hours. Ms. Bettman concurred with Mr. Kelly about the availability of County Road Funds and asked what projects would be removed from the City's CIP if new projects were added. Mr. Yordy concurred with Ms. Bettman about the need for structured parking. He said the issue Peace- Health faced was how to get redevelopment ready so when the next project came along the hospital was ready to go. He suggested that was the context in which to view the presentation. Mr. Yordy said he believed that many area residents and groups would argue that preservation and maintenance funds should be dedicated to Alder Street, which was extremely deteriorated. In response to a question from Mr. Pap~, City Manager Taylor indicated the concepts put forward by PeaceHealth were generally consistent with the concepts contained in the Central Area Transportation Study (CATS). He said the City and PeaceHealth had not reached the point of discussing specific projects. Mr. Pap~ thanked the representatives of PeaceHealth and regretted the City's lack of past cooperation with PeaceHealth, saying the City had the responsibility to work with and reach out to its largest employers about their expansion plans. Mr. Pap~ determined from Mr. Henry that the area in question was included in the CATS area. Mr. Pap~ asked how PeaceHealth's plans fit with CATS. Mr. Henry said staff looked at the area from a conflict and pedestrian access point of view, and had identified no street changes in the area. PeaceHealth representa- tives provided input into CATS, but at that time the two-way strategy for 13th Avenue was not advanced. He agreed with City Manager Taylor that the concepts were not inconsistent with CATS. Mr. Farrington said that he provided comments regarding CATS on such subjects as the street crossing at 12th Avenue and MINUTES--Eugene City Council October 11, 2004 Page 5 Work Session Patterson Street. However, at that time PeaceHealth had not been far enough along with its planning to provide concrete input about other concepts. Mr. Papd recommended the City facilitate a study of the area similar to that done for the east campus area to help bring the different parties together. City Manager Taylor said he and Mr. Yordy had discussed the benefits of such joint planning, particularly as the hospital's plans become clearer. He believed there were many opportunities that could be realized in the area, and said that the concepts put forward by PeaceHealth in regard to wider sidewalks, improved pedestrian safety, mixed use, improved linkages to other areas of downtown, and increased street level activities were consistent with the City's larger vision for the central area. Mr. Papd maintained such a study would benefit everyone. Ms. Taylor determined from Mr. Yordy that the urgent care function now housed at the Willamette Street site would move to the Hilyard campus, and that the number of employees at the Hilyard campus would increase in time to 1,500 to 1,800. Mr. Yordy said of 5,400 PeaceHealth employees in Lane County, approximately 3,000 worked at the Hilyard campus. Ms. Taylor determined from Mr. Yordy that the employees now working in the buildings to be demolished would be working at the RiverBend campus instead. Ms. Taylor expressed concern about pedestrian and bicycle access in the area and was concerned that wider streets would change the nature of the area and make the area more difficult for pedestrians to cross. She did not foresee the City or County having road funds to expand the streets. Mr. Yordy agreed about the importance of bicycle and pedestrian safety. He pointed out many of the linkages that exist in the area evolved over time without any specific planning, creating many potential conflict points. He said Peace- Health wanted to plan for those improved linkages. As a cyclist, he believed clearly marked intersections were a key to safe conditions. Mr. Yordy again emphasized that PeaceHealth and the University are the area's largest employers and offered community residents family wage jobs. He hoped that the council, when setting its priorities for expenditures, would consider those economic engines and consider the expenditure of City and County road funds to make conditions in the area safer, more accessible, and more effective, enhancing the ability of those employers to continue to provide good jobs. Ms. Taylor asked how much cafeteria workers and cleaners made working at PeaceHealth. Mr. Yordy said there were set wage scales and it depended on how long an employee worked at PeaceHealth. He said the average for the majority of jobs was well over $15 hour. He added that for lower wage workers, while wages might be somewhat above the general economy, PeaceHealth had special programs where those employees were provided additional benefits, including medical and educational benefits as well as emergency assistance. Ms. Solomon agreed with City Manager Taylor that there was a lot of opportunity in the area. She said it was clear that PeaceHealth spent some time thinking about that and about improvements needed to the corridor. She expressed appreciation to PeaceHealth for its commitment to the community and was happy it was to stay in the Hilyard Street area as she thought the ripple effect would be good for everyone. It appeared to Ms. Solomon that PeaceHealth was ready to do many of the things that Eugene wanted to see happen, including urban revitalization and redevelopment and creating connections to BRT. She hoped the council did what it could to help PeaceHealth realize its plans. Mayor Torrey complimented PeaceHealth on its presentation. He encouraged PeaceHealth to seek Road MINUTES--Eugene City Council October 11, 2004 Page 6 Work Session Fund money from the Lane County for road improvements. He pointed out that the University and PeaceHealth employed people from all over the county, creating a logical nexus to the County Road Fund. He did not want the council to be shortsighted because of its own funding problems. Mayor Torrey said the City needed to make that part of the city work, and an overlay was not sufficient to realize that goal. He urged the council to work with PeaceHealth to seek Road Fund dollars from Lane County for the needed transportation improvements. He agreed with Mr. Meisner that the County was often more interested in project funding, and thought the board would say yes to a well-crafted proposal. Mayor Torrey solicited a second round of council comments. Mr. Kelly spoke to the need for an increased connection between Eugene and the University, and suggested that one way to achieve that was through a fixed-rail trolley. Mr. Kelly inquired about PeaceHealth's plans for the former Sony site. Mr. Yordy said that PeaceHealth was still in the process of planning for the site. He said it was possible all medical records would be consolidated at that location. In addition, PeaceHealth planned to do all supply distribution from that site. There were also a series of functions previously planned for location at the RiverBend site that might be potentially located on the Sony site, such as the main production kitchen facility, because the Sony site contained excellent industrial kitchens. Ms. Bettman agreed there were opportunities that existed in the area in question and the area needed better and safer transportation facilities, but pointed out the City had many other outstanding transportation needs, such as its commitment to the transportation improvements associated with the courthouse. She questioned how the projects could be elevated above other priorities at a time when PeaceHealth planned to decrease employment and take down buildings at the site. She suggested that the issue be revisited in the far future when redevelopment occurred and employment was increased. Mr. Meisner also encouraged PeaceHealth to apply for Lane County Road Funds. He hoped the council would support that application. Mr. Meisner said as PeaceHealth refined its vision, he hoped it remembered the City's goal of having off- and on-ramps at the new 1-5 bridge; a major consideration in doing so was to make that portion of Franklin Boulevard a major access route to the hospital and downtown. Mr. Meisner determined from Mr. Yordy that PeaceHealth planned for the continued inclusion of space for the police substation at the Hilyard campus. Mr. Pap~ acknowledged the concerns expressed by councilors regarding the Road Fund, and suggested that PeaceHealth employ its political clout to the extent possible to secure funding. Mr. Yordy said he looked forward to partnering with the City in a request for funds. Mayor Torrey said it was important that PeaceHealth, the University, and other interested parties such as Northwest Christian College work out the details of the needed transportation improvements before they approached the City and Lane County for funds. Mayor Torrey solicited a third round of council questions and comments. Ms. Bettman determined from City Manager Taylor that Lane County had committed $1.6 million to the transportation projects associated with the courthouse project. That commitment was in writing. MINUTES--Eugene City Council October 11, 2004 Page 7 Work Session Ms. Bettman asked what Mr. Yordy meant when he discussed providing south Eugene with access to emergency room services. Mr. Yordy said that regardless of where the two hospitals ended up in terms of location or if McKenzie-Willamette/Triad was unable to move to the Eugene Water & Electric Board site as hoped, he pledged that PeaceHealth would work with the community and go through a certificate of need for another campus if necessary to ensure there was an emergency department south of the river. He said that PeaceHealth had clearly heard the concerns of residents. C. WORK SESSION: Economic Development Committee Recommendations on an Enterprise Zone The council was joined for the item by Planning and Development (PDD) Director Tom Coyle and staff member Denny Braud. Mayor Torrey reviewed the motion on the floor, which was: To direct the City Manager to proceed with application to establish an enterprise zone in Eugene jointly sponsored with and supported by Lane County, based on the recommenda- tion of the Mayor's Committee on Economic Development and consistent with State of Oregon guidelines. The application package will return to the council for approval in ad- vance of the spring 2005 State of Oregon application deadline. Mayor Torrey noted a friendly amendment to the amendment was accepted, as follows: To amend the motion by striking the single boundary expansion in the area bounded south of 1st Avenue, west of Jefferson Street, north of the railroad tracks, and east of Van Buren Street. Mayor Torrey noted that an amendment to the motion was offered and remained on the floor: To amend the staff motion so it applies to redevelopment, infill, and brownfield sites only. Mayor Torrey solicited council questions and comments. Ms. Bettman indicated her intent to revise the amendment to the motion in light of the legal opinion provided by the City Attorney's Office. Ms. Bettman moved to amend the staff motion so the boundary encompasses industrially zoned redevelopment, infill, and brownfield sites only. Mayor Torrey deemed Ms. Bettman's motion a substitute for the amendment formerly on the table. There was no objection. Mr. Kelly thanked City Attorney Glenn Klein for his legal clarification and staff for turning Ms. Bettman's concepts into the map reflected in Attachment A. He said his concerns about the council's inability to fine- tune the enterprise zone still existed, but he felt the proposed new boundaries mitigated the council's inability to target the enterprise zone by creating another community good. The acreage in question could MINUTES--Eugene City Council October 11, 2004 Page 8 Work Session benefit from redevelopment and infill. He intended to support the amendment and would support the main motion if the amendment succeeded. Mr. Kelly pointed out the boundaries of the zone had not shrunk much with the elimination of the greenfields. He suggested the exemption would be less necessary to attract a company to a greenfield because there were limited greenfield sites. Mr. Pap~ did not support the amendment. He said the committee's recommendation for an enterprise zone was intended to address the need for economic revitalization in Eugene. An enterprise zone could be a useful tool in achieving that goal. He believed the amendment took some important properties %ut of play" and he did not think it met the intent of the State program. Mr. Meisner indicated support for the amendment. He thought it made sense, and did not think the amount of property removed from the zone as a result was significant. While he acknowledged Mr. Papa's comments about the purposes of the zone, he said there were also City purposes and goals to be considered. He thought it appropriate to focus the zone on economic development in a manner consistent with the City's growth management goals. Ms. Solomon opposed the amendment. She thought it undermined the opportunity before the council. She asked why the City would not want to take full advantage of the tool that existed, noting the previous zone had worked well and had been quite active. She did not want to place more restrictions on the zone, undermining its ability to be successful. Ms. Solomon said the advisory committee, which had been very diverse, did not exclude greenfields from a zone in its recommendations. She said the committee had a robust discussion about the issue, and she was comfortable with the recommendation that the council received. Mr. Poling also opposed the amendment. He said there was considerable competition for such enterprise zones from communities around the state. He agreed with the remarks of Mr. Pap~ and Ms. Solomon, and wanted to move forward with the recommendations of the mayor's committee and make the application as simple as possible using State guidelines. Ms. Nathanson said that as the council considered adding restrictions to the zone, it should think about the consequences of those restrictions. She was convinced the community lacked sufficient redevelopment and brownfield sites to meet the needs of local businesses seeking to expand either on-site or in the community in general. Ms. Nathanson recalled the council's discussion regarding nodal development, during which it got so prescriptive about the way development occurred that some areas would have no development at all rather than some development that would be better than what existed. She opposed the amendment. Ms. Taylor supported the amendment as she believed it made the zone less harmful. She said just because greenfields were not in an enterprise zone did not mean that people could not expand or develop on those areas, they merely would not receive a tax exemption. She thought the zone should provide some clear benefit to the community in return for the tax exemption. Ms. Bettman agreed with Ms. Taylor's remarks. She said the last time the City had an enterprise zone it had been very controversial and contentious. She had personally opposed such zones. She said the attitude that the zone must be ~all or nothing" had divided the community for a long time. Ms. Bettman said she believed she could support a focused enterprise zone with a demonstrable community benefit. Ms. Bettman said that several councilors believed the community lacked sufficient shovel-ready greenfield MINUTES--Eugene City Council October 11, 2004 Page 9 Work Session sites. There was a demand for such sites, and she questioned why the community should have to pay businesses to develop on such sites in light of the demand and supply. It did not make good economic sense. She believed it made good economic sense to encourage expansion and development on existing, industrially zoned sites that were either underused or needed to be cleaned up. She pointed out that once the council proceeded with the enterprise zone, it had to accept the companies that applied if they met the eligibility requirements. That had been a concern for many residents who opposed the companies that were recruited to Eugene when the last zone existed. Ms. Bettman advocated for a zone that enjoyed broad community support so that new businesses did not create controversy such as occurred in the past. Mayor Torrey did not want the council to limit itself. He asked councilors to stop thinking about the past and consider the future and ask themselves why it was contemplating the zone. It was for the purpose of creating job opportunities for existing and future residents. Mayor Torrey was convinced many residents would benefit from manufacturing jobs. The City had a limited capacity to accomplish its goals without an enterprise zone. Mayor Torrey said the country was losing its ability to compete on an international scale with service jobs, and the council was not going to stop outsourcing because it did not like it. Minor tax adjustments would not solve the problem when citizens of India with college educations can be hired for $120 month. He said the City needed to find where its unique opportunities exist, and one opportunity was the intellectual capacity at the University of Oregon and convert ideas into products. He said he was not talking about big industries; he had been in Korea the previous week and learned that Hynix would not be coming to Eugene for a second factory because it could do so cheaper in China. Mayor Torrey said if Eugene wanted jobs it needed to have space for companies. Mayor Torrey suggested that the council charge the Council Committee on Intergovernmental Relations with the task of securing changes in the enterprise zone law to allow the City to focus its zone more narrowly. Mayor Torrey indicated that in the event of a tie, he would oppose the amendment. Mayor Torrey solicited a second round of comments. Ms. Bettman said she reviewed the presentations given the advisory committee and the presenters were clear that manufacturing jobs were not in the community's future. Eugene's competition in that regard was global. One presenter indicated that high-paying, knowledge-based jobs were desirable and viable for Eugene. Medical services were identified as a growing industry. Former City employee Lew Bowers told the committee that the City's strategy should be 90 percent business retention and 10 percent business recruitment. Ms. Bettman considered enterprise zones in general the least effective economic strategy the City had available, but if such zones could be more targeted, perhaps the City could realize a community benefit. Mr. Kelly asked that Ms. Bettman's amendment be revised to read ;'... as shown in Attachment A." There was no objection. Mr. Kelly suggested councilors were '~talking past each other." Some councilors appeared to believe the zone must be adopted as previously presented to the council or it was not a viable tool. Mr. Kelly suggested the council could support the amendment and garner a clear majority support for the main motion and a zone councilors could defend to their constituents, or the council could reject the amendment, have a tie vote, and continued friction and "goodness knows what happens after January 1 ." He asked "Why do that?" He was MINUTES--Eugene City Council October 11, 2004 Page 10 Work Session "dumbfounded" by the opposition voiced by other councilors. The amendment did not add to the complexity of the application; it only moved a line on a map "a little bit." Mr. Kelly believed the amendment would leave 80 to 85 percent of the land in the original proposal in the zone. He pointed out the advisory committee forwarded only a conceptual description of what the zone should include to the council, so the council was not rejecting its recommendations or any fundamental precepts offered it by the committee. Mr. Pap6 determined from Mr. Braud that staff was not sure of the precise amount of land that would be eliminated from the zone if the amendment were accepted. Mr. Braud estimated the amount to be eight percent to ten percent. The majority was in industrial zoning. Mr. Pap6 said he was not arguing that Ms. Bettman's amendment offered no benefit to the community. He was interested in what he thought was the best for the community in terms of improving its economic drivers and creating better jobs. He thought eliminating ten percent of the land in the zone would be a failure to realize the maximum benefit from the tool. Mr. Pap6 said his focus was on business retention as opposed to business recruitment. He was not arguing for business recruitment. He suggested that Eugene would not have lost Symantec to Springfield if it had an enterprise zone for the business to relocate to. He was aware of other businesses in Eugene with a limited ability to expand on site that would like an opportunity to relocate to an enterprise zone. Mr. Meisner concurred with Ms. Bettman's point regarding the future of manufacturing. He said it was not the future. He concurred with Mr. Kelly regarding the relatively small amount of land involved. Mr. Meisner expressed the wish that the "all or nothing" mentality both political spectrums of the council were demonstrating would end. He did not like it, or the unwillingness of councilors to listen or consider something that would gain near-majority support and survive when a new council took office. Ms. Solomon said the committee was not specific in its recommendations to develop brownfields only, so it appeared to her that the committee recognized the need to keep greenfields in the zone. She said that the City was not paying people to locate in the zone. She said the City could not give away money it was not receiving. Speaking to the issue of recruitment versus retention, Ms. Solomon pointed out the majority of companies in the last zone had been small local companies. Ms. Nathanson said the committee may not have drawn a map but it had discussed the issue whether to focus on brownfields only. She thought the committee's work and recommendations regarding the topic were solid and she wanted accept them without much alteration. Ms. Nathanson said the community could not survive on retail while awaiting the development of knowledge-based businesses, which she supported. She said the zone was about business retention, and she agreed with that focus. She pointed to the businesses that left Eugene to relocate in other communities because they had been unable to find a financially viable way to stay in Eugene. Ms. Nathanson asked those in favor of the amendment to reconsider their positions and honor the committee's hard work. Ms. Nathanson said she was disturbed by the distinction made between benefit to the community and benefit to the businesses. The enterprise zone existed because there was a real benefit to the community, that of job retention. Mayor Torrey said he continued to oppose the amendment. He pointed out that developing brownfield sites was very expensive and the cost would not be offset by the tax exemption. Cities the size of Eugene did not MINUTES--Eugene City Council October 11, 2004 Page 11 Work Session generally receive assistance from the federal government in cleaning such sites. Mayor Torrey solicited a third round of council comments. Ms. Bettman said Eugene would have to address the issue ofbrownfield sites. Much of the industrial land in the city's core was contaminated. She thought the City needed to give businesses willing to develop on brownfield sites more benefits than could be provided by an enterprise zone. Ms. Bettman agreed the majority of businesses in the zone were locally owned and small, but those businesses did not receive the majority of the tax exemption. Speaking to Ms. Solomon's contention that the City could not give tax breaks with money it did not have, Ms. Bettman said the cumulative impact of such zones across the state was significant. Residents had to pay more taxes to pay the shortfall. Mr. Kelly acknowledged the mayor's comments regarding the cost of developing on brownfields but pointed out the new boundary did not exclusively contain brownfields. There were also infill and redevelopment areas in the boundary. He noted that Jack Roberts, Director of the Lane Metropolitan Partnership, believed the mitigation costs of brownfields in Eugene could be relatively low. Mr. Kelly agreed with Mr. Meisner's comments about the need to consider the City's other economic development policies, such as the Growth Management Study policies. Mr. Pap6 said that until the City had more information about the amount of industrial land it had, he preferred to keep the boundaries as proposed by the advisory committee. Mayor Torrey solicited a fourth round of council comments. Speaking to the issue of the advisory committee, Ms. Bettman said the committee met about six months but its review had not been very broad. It had essentially analyzed the old tools the City used in the past. She had objected the make-up of the committee when it was formed because it was %o obviously" had a majority of business interests as opposed to a broad range of citizen interests. However, she would have supported it if it would have given the council the recommendations for which it had %onsensus minus one." That way the council would have been given recommendations with support from various community factions. That did not happen. Mayor Torrey called for the vote on the amendment. The vote on the amendment was a 4:4 tie; Ms. Taylor, Mr. Kelly, Mr. Meisner, and Ms. Bettman voting yes, and Ms. Nathanson, Mr. Pap6, Mr. Poling, and Ms. Solomon voting. The mayor voted against the amendment and it failed on a final vote of 5:4. Mr. Kelly regretted the vote. He said the council had the chance to have a united front on an important economic development issue but it was unable to achieve that. He was frustrated and angry that a council majority, rather than accepting what he believed to be 85 percent of the pie on which all could agree, instead took 100 percent of the pie, splitting the community down the middle. What happened in January, Mr. Kelly said, ~who knows?" MINUTES--Eugene City Council October 11, 2004 Page 12 Work Session Ms. Bettman said more importantly, what happened when the first business made an application for the zone, and there was a community uproar that the council was giving away tax dollars to businesses. The council would have no ability to ask for community standards or leverage business siting in a way that fulfilled community objectives and City policies. She said it was a compromise for her to support an enterprise zone to start with because she believed there were other places the City should invest its economic development dollars. She thought her amendment was a modest proposal that could be supported by everybody. Since it was not, she would vote against the main motion. Mayor Torrey termed the glass ;;half full" as opposed to totally empty, and said that was because the City could lobby with other Oregon communities for changes to the State law. Mayor Torrey suggested that it was unrealistic for Ms. Bettman to expect other councilors to automatically accept her proposal in light of the fact the council was unsure of the amount of available industrial land and the impact the amendment would have on that supply. Ms. Taylor thought to accept an enterprise zone without knowing what was to be there was unwise. People needed good jobs, but the council needed to talk about what kinds of jobs and to follow up on the recent sustainable development forum. Mr. Meisner indicated reluctant support for the main motion. He said if the issue came back to the council before he left office, he would vote against proceeding with the application. He was very concerned about the lack of understanding of ;;battle versus war" on the part of councilors. Mr. Pap6 determined from City Manager Taylor the industrial lands study would not be done until the fall of 2005. He determined from Mr. Braud that the parcels deleted as a result of the friendly amendment were small and already developed. Mayor Torrey called for the vote on the main motion. The vote on the final motion was 5:3; Ms. Taylor, Ms. Bettman, and Mr. Kelly vot- ing no. The meeting adjourned at 7:20 p.m. Respectfully submitted, Dennis M. Taylor City Manager (Recorded by Kimberly Young) MINUTES--Eugene City Council October 11, 2004 Page 13 Work Session