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HomeMy WebLinkAboutItem C: GloryBee Food Zone Request ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: GloryBee Foods Enterprise Zone Boundary Amendment Request Meeting Date: January 28, 2008 Agenda Item Number: C Department: Planning and Development Staff Contact: Denny Braud www.eugene-or.gov Contact Telephone Number: 682-5536 ISSUE STATEMENT GloryBee Foods, a local natural foods company, has requested consideration of a West Eugene Enterprise Zone boundary expansion that would include a 60 acre parcel that is immediately adjacent to the existing West Eugene Enterprise Zone boundary (see map in Attachment A). BACKGROUND The West Eugene Enterprise Zone is established under state statutes (ORS 285C). The boundary of the Zone was established on July 1, 2005 by the City of Eugene and Lane County, joint sponsors of the Zone. Changes to enterprise zone boundary are allowed under ORS 285C.115. Sponsors of enterprise zones may submit a request to the Oregon Economic and Community Development Department. The request must include a copy of the resolution of the governing body of the sponsor(s). On September 12, 2007, the Lane County Board of Commissioners unanimously approved GloryBee Foods’ proposed West Eugene Enterprise Zone boundary amendment. GloryBee Foods is a supplier of natural foods and craft supplies to consumers, businesses, and manufacturers worldwide. The company has been family-owned and operated in Eugene since 1975. GloryBee has indicated that they have reached maximum capacity given the constraints of their current facilities. Their primary location is 120 N. Seneca Road, but growth and space limitations have resulted in four other facilities in Eugene. The company currently has 131 employees, 30 of whom were added in 2007. GloryBee has recently purchased a 60 acre industrial-zoned (I-2) vacant parcel on Awbrey Lane. The company is proposing to construct a new $15 million facility on approximately 20 acres. The new facility being proposed would include many sustainable green-building features and provide the space necessary for continued growth (see project description in Attachment B). GloryBee is in the process of subdividing the remaining land in order to create a sustainable industrial park that would target other natural foods businesses and businesses with compatible sustainable business products. The company expects the subdivision to include approximately eight parcels that would be sold to other companies (see preliminary subdivision plan in Attachment C). Covenants and restrictions being considered for the proposed subdivision have been drafted (see Attachment D). The 60-acre parcel is located outside of the Eugene city limits, within the Urban Growth Boundary, and immediately adjacent to the north end of the existing West Eugene Enterprise Zone boundary. Because F:\CMO\2008 Council Agendas\M080128\S080128C.doc the site is located outside of the Eugene city limits, there are no City tax revenue impacts associated with the boundary amendment at this time. The GloryBee site is located within the Industrial Corridor Community Organization (ICCO) area. The City of Eugene and this organization entered into an Annexation and Urban Services agreement over 15 years ago which allows development of property within this corridor without annexation. The existing West Eugene Enterprise Zone boundary includes approximately 4,814 acres. Expansion of the boundary to include the 60-acre GloryBee parcel would represent a 1.2% increase in the boundary size. This parcel, and several other parcels north of the existing boundary, was included in the former West Eugene Enterprise Zone which expired in 1997. GloryBee Foods has submitted an Enterprise Zone Authorization Application related to their proposed new facility investment. Approval of the application can only be considered if a boundary amendment is approved. The boundary amendment must be approved prior to the start of construction in order for the project to be eligible for an enterprise zone tax exemption. GloryBee is expected to begin construction in 2009. RELATED CITY POLICIES Sustainability Initiative Develop Office of Sustainability and Sustainability Commission that supports broad sustainable practices and create a tool chest of things needed to support businesses that produce sustainable products or provides or utilizes sustainable practices. Growth Management Policies Policy 16: Focus efforts to diversify the local economy and provide family-wage jobs principally by supporting local, and environmentally-sensitive businesses. Direct available financial and regulatory incentives to support these efforts. Eugene/Springfield Metro Area General Plan ? Encourage economic development which utilizes local and imported capital, entrepreneurial skills, and the resident labor force. ? Encourage industrial park development, including areas for warehousing and distributive industries and research and development activities. ? Encourage the expansion of existing, and the location of new manufacturing activities, which are characterized by low levels of pollution and efficient energy use. ? Encourage economic activities which strengthen the metropolitan area’s position as a regional distribution, trade, health, and service center. ? Annexation to a city through normal processes shall continue to be the highest priority. ? Ultimately, land within the urban growth boundary shall be annexed to a city and provided with the required minimum level of urban services. While the time frame for annexation may vary, annexation should occur as land transitions from urbanizable to urban. F:\CMO\2008 Council Agendas\M080128\S080128C.doc COUNCIL OPTIONS 1. Approve the boundary amendment and direct the City Manager to submit a boundary amendment request to the State of Oregon. 2. Approve the boundary amendment and direct the City Manager to submit a boundary amendment request to the State of Oregon after GloryBee has (1) received final approval for a subdivision of the property and (2) the City has approved a building permit for Glorybee Foods. 3. Do not approve the boundary amendment request. 4. Take no action at this time. CITY MANAGER’S RECOMMENDATION The City Manager recommends approval of Resolution No. 4925, and recommends that a boundary amendment request be submitted to the Oregon Economic and Community Development Department after GloryBee has (1) received final approval for a subdivision of the property and (2) the City has received a building permit application for Glorybee Foods’ new facility. SUGGESTED MOTION Move to approve Resolution No. 4925 authorizing the City Manager to make application to the State of Oregon to amend the boundaries of the West Eugene Enterprise Zone. ATTACHMENTS A. Proposed Resolution B. Project Description C. Preliminary Subdivision Plan D. Draft Covenants and Restrictions FOR MORE INFORMATION Staff Contact: Denny Braud Telephone: 682-5536 Staff E-Mail: denny.braud@ci.eugene.or.us F:\CMO\2008 Council Agendas\M080128\S080128C.doc