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HomeMy WebLinkAboutItem A - Enterprise Zone ApplicEUGENE CITY COUNCIL AGENDA ITEM SUMMARY Work Session: Economic Development Committee Recommendation on an Enterprise Zone Meeting Date: February 16, 2005 Agenda Item Number: A Department: Planning and Development Staff Contact: Denny Braud www. cl. eugene, or. us Contact Telephone Number: 682-5536 ISSUE STATEMENT Consistent with the recommendation from the Mayor's Committee on Economic Development, and City Council direction in October 2004, the council is being asked to consider submittal of an application to the State of Oregon in 2005, for establishment of an enterprise zone in Eugene. BACKGROUND On October 11, 2004, the council directed the City Manager to proceed with an application to establish an enterprise zone in Eugene, jointly sponsored with and supported by Lane County, based on the recommendation of the Mayor's Committee on Economic Development, and consistent with State of Oregon guidelines, with the application package returning to the council for approval in advance of the April 25, 2005, State of Oregon application deadline. The Mayor's Committee forwarded the following recommendation: · 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 investments occurring on greenfield sites. · 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. The Mayor's Committee did not recommend specific job quality standards. However, it suggested that job quality be considered based on attractive wages, employee benefits, job training, advancement opportunities, job retention, and utilization of programs that assist disadvantaged workers. A sample job quality standards concept is included in Attachment C. If the City chooses to adopt additional local criteria, the State of Oregon would not require the additional criteria to be included in the application package. Local additional criteria could be created and amended any time prior to the application, or any time during the life of the zone. In accordance with State statutes, additional criteria must be L:\CMO\2005 Council Agendas\M050216\S050216A. doc "reasonably related to the public purpose of providing opportunities for groups of persons to obtain employment." Additional background information on the enterprise zone program is included in Attachment D. Statewide, there are two zones that expire in 2005 (Harrisburg and Madras). Other communities, including Harrisburg and Madras, are able to compete for these two available zones. Both Harrisburg and Madras are expected to reapply for ten more years of enterprise zone designation. It is anticipated that Harrisburg will receive strong State and regional support for re-designation of its zone given the importance of the thriving RV industry to the region's economy. Madras is also expected to make a strong push for re-designation given the fact that its zone is focused on a large City-owned industrial park. Eugene's application should also receive strong consideration, given the positive investment history associated with the former zone, and the importance of Eugene's manufacturing sector relative to the region. It is also possible that the State legislature could consider expanding the number of enterprise zones allowed statewide, and that such expansion would be applicable for this year' s 2005 application round. The 2005 application material for designation of an enterprise zone in Eugene is substantially complete. If the number of applicants exceeds the number of zones available, the State allows thirty additional days (following April 25) for applicants to submit additional material in response to specific competitive criteria. A draft copy of Eugene's application is included in Attachment E. RELATED CITY POLICIES The enterprise zone tax exemption addresses the following related City policies: Sustainable Community Development The council's Sustainable Community Development goal addresses high quality of life and a healthy economy. The availability of quality jobs is a basic quality of life issue. With a local unemployment rate that exceeds the national average, and local income levels below state and national averages, the creation of new production sector jobs is fundamental to the health of the local labor market. The creation of an enterprise zone will also provide an incentive for redevelopment, infill development, and brownfield redevelopment, which are primary sustainability goals. Growth Management The enterprise zone advances the City's Growth Management goals by encouraging more intensive industrial development in a defined area that has been zoned accordingly, and where existing public infrastructure investments have already occurred. Fair, Stable, and Adequate Financial Resources The long-term property tax revenues that result from new investments that are encouraged by the short- term tax exemption address Council's goal for financial resources adequate to maintain and deliver municipal services. L:\CMO\2005 Council Agendas\M050216\S050216A. doc COUNCIL OPTIONS Three options have been identified: 1. Mayor's Committee Recommendation: Proceed with application to the State of Oregon in 2005. The boundary would include the prior (expired) West Eugene Enterprise Zone boundary, plus a limited amount of adjacent industrial property that was not included in the previous boundary. Revevelopment, infill, and brownfield redevelopment projects would receive the standard (100%) three-year tax exemption. Greenfield development would be subject to additional job quality standards, with the last one-third of the tax exemption conditioned on job quality (minimum exemption = 66%, maximum exemption = 100%). Job quality standards would be adopted prior to establishment of the zone. Pros: Supports Mayor's Committee recommendation Addresses sustainability goals by providing the maximum benefit for redevelopment, infill, and brownfield redevelopment Conditions greenfield development, and appears to adhere to State statutes and rules regarding the reasonableness of additional local conditions Provides opportunity, if selected by the State, to have the enterprise zone operating on July 1, 2005 Cons: Expect significant competition from two expiring zones in the 2005 State application round. 2. Restricted Boundary_: Proceed with application to the State of Oregon in 2005, with a smaller, restricted boundary. The council previously considered an option that would eliminate greenfield development sites from the proposed boundary (see Attachment B). In this option, all eligible projects would be focused on redevelopment, infill, or brownfield redevelopment projects; therefore, all eligible projects would receive the standard (100%) three-year tax exemption. Pros: Zone more focused on the City's sustainability goals Zone boundary could be expanded in the future if desired Opportunities for new construction are still available on vacant infill sites within the restricted boundary Restricted boundary would still include a majority of the area recommended by the Mayor's Committee Provides opportunity, if selected by the State, to have the enterprise zone operating on July 1, 2005 Reduces the City's administrative burden associated with monitoring compliance with additional local criteria Cons: - May lose opportunity to attract high value, large job creation projects that are specifically seeking larger greenfield sites Not entirely consistent with the Mayor's Committee recommendation Expect significant competition from the two expiring zones in the 2005 State application round L:\CMO\2005 Council Agendas\M050216\S050216A. doc 3. Defer Application to 2006: The council could consider making application to the State of Oregon in 2006, instead of this year. With two additional zones expiring in 2006, there will be an opportunity to apply next year. Pros: Provides additional time to further develop City-wide sustainability goals and objectives Allows for the completion of the Buildable Lands Inventory analysis prior to application Cons: Delays establishment of a zone until July 1, 2006 Not consistent with the Mayor's Committee recommendation No guarantee that Eugene's application would be successful in 2006, given limited number of zones available CITY MANAGER'S RECOMMENDATION The City Manager approves the staff-developed recommendation that the City submit an application for designation of an enterprise zone in 2005, consistent with the recommendation of the Mayor's Committee on Economic Development. Although there may be significant competition this year, it is possible that the Legislature would expand the number of available zones. If Eugene is unsuccessful this year, the application could be resubmitted in 2006; and a non-selection this year could help advance a successful application next year. SUGGESTED MOTION Move to direct the City Manager to bring back a recommendation for establishing job quality standards applicable to enterprise zone greenfield development projects, and bring back a resolution in support of submitting an application to the State of Oregon for designation of an enterprise zone in 2005, jointly sponsored with and supported by Lane County, based on the recommendation of the Mayor's Committee on Economic Development, with the boundary as proposed in Attachment A of this agenda item. ATTACHMENTS A. Recommended Enterprise Zone Boundary B. Alternative Enterprise Zone Boundary C. Sample Job Quality Standards Concept D. Additional Enterprise Zone Background E. Draft Application for Designation of an Enterprise Zone FOR MORE INFORMATION Staff Contact: Denny Braud Telephone: 682-5536 Staff E-Mail: denny.braud~ci, eugene, or.us L:\CMO\2005 Council Agendas\M050216\S050216A. doc ATTACHMENT A Recommended Enter ' Zone ..~i '~ ~. · West Eugene Enterprise Zone Boundary ~ Eugene Urban Growth Boundary ~ Miles 0 0.3 0,6 0.9 1.2 Total ~ Eugene Ci~ Limits Acerage: 5946 Square Hiles: 9.29 Ci~ of Eugene Planning and Developmen~ ~, Febn~a~ 8, 2005 ATTACHMENT B Restricted Boundary "Removal of Greenfields" ..:.."; ~ Ave ~ Miles Eugene Urban ~rowth Bounda~ ~ o o.3 o.6 o.9 ~ Enterprise Zone with Removal of Green~elds Gr~n~eld O~ of Eugene Acreage of Re~ri~ed ~unda~ Zone: ~160 ~3 Re,ricked Bounda~ GreenNeld Acerage: 785 Planning and Developmen¢ Feb~a~ 8, 200~'~" ATTACHMENT C *** Sample *** Job Quality Standards Concept Attractive Wages Measure: New jobs created must meet or exceed the annual mean (or median) wage for Lane County Production Occupations, as defined by the Oregon Employment Department's Standard Occupational Classification (SOC) system. Example: After one full year of employment, all new jobs (or a percentage of all new jobs) must receive an annual wage of at least the current mean (or median) Production wage for Lane County. Employee Benefits Measure: Employee benefits must meet the national average of non-mandated benefits (i.e. health insurance, holiday, vacation, retirement) as defined by the Bureau of Labor Statistics. Example: All new jobs must receive non-mandated benefits, measured as a percentage of their pay, consistent with the national average. Job Training and Advancement Opportunities Measure: Company demonstrates that sufficient training and advancement opportunities will be available to new employees. (No specific measure identified at this time). Example: Company must dedicate a certain percentage of its new employee compensation to training. Advancement opportunities may be difficult to measure objectively during the short life of the exemption. Job Retention Measure: State Statutes require that companies maintain the required ten-percent employment increase for the life of the exemption. Example: Require tax exemption to be repaid if company does not maintain its ten- percent employment increase. Utilization of Programs that Assist Disadvantaged Workers Measure: Percent of new jobs filled through local training and referral agencies. Example: At least 25% of new jobs are filled through programs that assist disadvantaged workers (ex. Oregon Employment Department, Lane Community College, Goodwill Industries) ATTACHMENT D Enterprise Zone: Additional Background Information 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 defined by the zone sponsor. The exemption is designed to encourage new investment via a short-term exemption, with the long term goal of 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%. Businesses can request two additional years of tax exemption if they agree to specific wage requirements and other conditions that the zone sponsor may impose. There are 49 active enterprise zones in Oregon, four of which are in Lane County: Springfield, Cottage Grove, Florence, Oakridge/Westfir. Zones are established for a ten-year period through a competitive state application process. There are a maximum of 49 zones available in the state. The next state application opportunity for establishment of a new zone will occur in the Spring of 2005. In urban enterprise zones, the sponsor may require businesses to satisfy conditions in addition to the basic state eligibility criteria (applicable to the three-year exemption). However, these conditions must be "reasonably related to the public purpose of providing opportunities for groups of persons to obtain employment." The conditions must be imposed pursuant to an adopted local policy, and must be in addition to, and not in lieu of, state program criteria. The state has specific rules regarding the reasonableness of conditions required by the zone sponsor. The expired West Eugene Enterprise Zone was in place from 1987 - 1997, and was jointly sponsored by the City of Eugene and Lane County. The zone boundary included approximately 6.5 square miles in West Eugene. During its ten-year life, 57 companies participated in the program, and 87% of the companies that used the program were existing local businesses. Not including the large investments made by Hynix and HMT Technology, the average investment in the West Eugene zone was approximately $800,000. The average three-year tax exemption benefit for those investments was approximately $32,000. The largest investments that occurred within the zone were made by Hynix ($1.66 billion investment, $48 million tax exemption) and HMT Technology ($90 million investment, disqualified due to closure). All other investments made within the zone totaled $62.5 million. Although the West Eugene Enterprise Zone expired on June 30, 1997, state statutes allow companies that were participating in the program at the time of the Zone's expiration ("grandfathered" companies) to continue to use the program's three- year tax exemption benefit on additional investments made after the expiration of the Zone so long as the company has an active tax exemption at the time that a new investment is qualified. There are only two remaining grandfathered companies, Hynix and Lanz Cabinets. Their grandfathered status expires in 2007. L:\CMO\2005 Council Agendas\M050216\S050216A. doc Questions and Issues from September 29, 2004 Meeting: 1. Is there an alternative form of property tax exemption, other than the State's Enterprise Zone program, that could be used to redefine the types of companies that qualify, and broaden our ability to condition the tax exemption? No. Property tax exemptions are authorized by the State of Oregon-Department of Revenue. The City of Eugene does not have the authority to initiate tax exemptions locally. Existing tax exemption programs, including the Multiple Unit Property Tax Exemption (MUPTE), Vertical Housing Development Zone, Historic Property Tax Exemption, and Low-income Housing Tax Exemption are all authorized under state statutes. These programs are not applicable to traditional job-creation/economic development activities. 2. What is the definition of "family wage job" and "living wage"? These two terms are typically used synonymously, but there is no single, universally accepted definition. The State of Oregon typically considers "average annual wage" to be the benchmark for family/living wages. The average annual wage in Lane County is currently $30,311 ($14.57/hr.). The Economic Policy Institute considers the annual family/living wage to be $31,383 ($15.09/hr.) for a family of three (average household size in Eugene) in the Eugene-Springfield area. 3. What are the "community standards" that were referenced at the previous meeting; and, given the state Enterprise Zone statutes and rules, is it possible for these standards to be incorporated into locally adopted conditions? The Eugene-Springfield Solidarity Network has developed a community standards policy for economic development subsidies provided to business. The following is a description of the standards and an analysis of the City's ability to condition the enterprise zone tax exemption on each standard: Transparancey and Disclosure - Open and pubfic accounting of how money will be spent and what it will provide to the local community. Tax exemptions granted in the enterprise zone program are matters of public record. Because the program only offers tax exemptions, there is no money "spent" in the program, and therefore no ability for companies to utilize funds inappropriately. The County Tax Assessor requires companies to demonstrate annually that they are in compliance with the program requirements. Accountability- Employers who do not observe these community standard; will be required to pay back any public money or tax breaks/incentives that they have received and will not be eligible for further subsidies until they guarantee compliance. Establishment of independent commission to oversee and monitor compliance with community standard,'. L:\CMO\2005 Council Agendas\M050216\S050216A. doc State statues require the Tax Assessor to disqualify tax exemptions in cases where companies are not meeting the program criteria. There are layers of accountability provided in the program, including statutes and rules that clearly define events of disqualification, requirements that companies submit statements of compliance to the Tax Assessor annually, and the authority provided to the Tax Assessor to disqualify ("clawback") exemptions. Given the accountability required in the program, there is no clear role for an independent commission to oversee and monitor compliance. Family Wage Jobs- Require racially and ethnically diverse workforce, provide living wage jobs, fair labor practices, on-site childcare or chiM care allowances, neutrality in union organizing campaigns. The State statues allow the adoption of local conditions that are "reasonably related to the public purpose of providing opportunities for groups of persons to obtain employment...". It may be possible to include local conditions related to wages, keeping in mind that there may be limitations on the jobs that can be conditioned (new jobs only) and the reasonableness of the wage requirement. Conditions related to workforce diversity and childcare appear to be consistent with the provision of employment opportunities; although childcare requirements for small/medium-sized businesses may not be reasonable. Regarding equal opportunity employment and fair labor practices, there are existing laws that govern these areas. State enterprise zone statutes require companies to comply with all local, state, and federal laws applicable to the companies' operations within the enterprise zone throughout the exemption period. Local Hiring - Any jobs created at any level are hired retained and promoted locally first, hiring a majority (at least 60%) locally. Utilize local vendors, suppliers and services. Based on a 1995 opinion issued by the Oregon Attorney General which declared that residency- based hiring requirements violated the Oregon Constitution, the Oregon Administrative Rules for enterprise zones specifically states that additional local conditions "shall not require that the eligible business firm' s hiring, recruitment, promotion, training, compensation or treatment of its actual or potential employees, suppliers, contractors or customers be based on those persons' or businesses' residency or geographic location..." Sustainability - Encourage small business and existing sectors, "smart growth "principles, encourage use of nearby existing mass transit routes. Historically, the primary focus of the enterprise zone program in Eugene was directed towards the encouragement of small business growth in existing traded sector businesses. In the expired West Eugene Enterprise Zone, 81% of the companies that participated had less than 50 employees when their new investment was qualified. Because the continuation of this small business focus in a newly created zone is a desired outcome, it is important that additional local conditions provide equal or greater access to the tax exemption for these local small businesses. Central to the idea of "smart growth", policies should encourage density in areas already served by infrastructure, which has the effect of conserving open space and irreplaceable natural resources on the urban fringe. Benefits of smart growth development policies include a stronger L:\CMO\2005 Council Agendas\M050216\S050216A. doc tax base for the community, closer proximity of a range of jobs and services, increased efficiency of already developed land and infrastructure, reduced development pressure in edge areas, and preservation of more open space. Although it may be difficult for specific additional conditions related to smart growth and mass transit to meet the state's "employment opportunities" limitation, the tax exemption can be used as a tool to "encourage" smart growth principles. The recommendation forwarded by the Mayor' s Committee on Economic Development does incorporate principles of smart growth. The recommendation provides greater benefits for redevelopment, infill, and brownfield investments; and the boundary recommendation is focused on the encouragement of a dense pattern of development within an industrial area with infrastructure already provided. 4. What definitions are being used to classify redevelopment, infill, brownfield, and greenfield development? Redevelopment- reusing, renewing and restoring existing structures, including structural improvements and production improvements; removal of non-economic or outdated improvements; consolidation and clearing of property. Infill Development - creation of new and higher density uses for land within existing developments, including expansion of existing facilities on adjacent property, and development of underutilized lots within an existing development area. Brownfield Development - abandoned, idle, or under-utilized industrial and commercial properties where expansion or redevelopment is complicated by real or perceived environmental contamination. Greenfield Development - new development occurring on the periphery of an existing built-up area, on a parcel of land not previously developed L:\CMO\2005 Council Agendas\M050216\S050216A. doc ATTACHMENT E West Eugene Enterprise Zone Application for Designation of an Oregon Enterprise Zone April m, 2005 Sponsors City of Eugene Lane County History of the Enterprise Zone Program in Eugene The expired West Eugene Enterprise Zone was established in 1987, with the joint sponsorship of both the City of Eugene and Lane County. The zone boundary included approximately 6.5 square miles in West Eugene. The West Eugene zone expired in 1997. During its ten-year life, 57 companies participated in the program, making it one of the most active zones throughout the State of Oregon program. Today, 47 (82%) of the businesses that received tax exemptions in the expired West Eugene Enterprise Zone have maintained operations in Eugene. It is estimated that the employment of these firms has grown by over 3,000jobs since they were initially precertified in the program. Qualified investments made within the expired West Eugene Enterprise zone totaled over $1.8 billion. Hynix Semiconductor Manufacturing, one of the state's largest enterprise zone investors, has made investments in excess of $1.6 billion. In addition to the large Hynix investments (and the large investment made by HMT Technology), all other investments made within the zone totaled $62.5 million. Although the West Eugene Enterprise Zone expired on June 30, 1997, companies that were participating in the program at the time of the Zone's expiration ("grandfathered" companies) were allowed to continue to use the program's tax exemption benefits on investments made after the expiration of the Zone. There are only two remaining grandfathered companies, Hynix and Lanz Cabinets. Their grandfathered status will sunset in 2007. Expired West Eugene Enterprise Zone Highlights Hynix Semiconductor Manufacturing Manufactures dynamic random access memory (DRAM) and synchronous dynamic random access memory (SDRAM). The second largest semiconductor manufacturer in the world, one of the largest private employers in Oregon, and presently Eugene's largest taxpayer. Enterprise Zone Investment(s): $1.66 Billion Precertified Employment: 0 Current Employment: 880 Emerald Valley Kitchen Manufacturer of all-natural fresh salsa, dips, hummus, ., ~:: ~iii ~ and bottled cooking sauces. Constructed 19,000 sqft production facility. Enterprise Zone Investment(s): $42%000 Precertified Employment: 5 Current Employment: 18 Richardson Sports Manufacturer of sports apparel. One of the largest cap manufacturers in the U.S. Enterprise Zone investment(s): $856,230 Precertified Employment: 7 Current Employment: 100 Custom Craftworks Manufacturer of message tables. One of the leading table manufacturers in the world. Enterprise Zone Investment(s): $1.1 million Precertified Employment: 0 Current Employment: 55 Lanz Cabinets Manufacturer of custom cabinets, distributed throughout the West Coast. Enterprise Zone Investment(s): $2.4 million Precertified Employment: 22 Current Employment: 200 Oregon Precision Industries Manufacturer of' specialty plastic products and equipment primarily for the bottled beverage industry. Enterprise Zone Investment(s): $2.24 million Precertified Employment: 9 Current Employment: 75 Burley Design Cooperative Manufacturer of bicycles and bicycle trailers sold throughout the world. Enterprise Zone Investment(s): $3.7 million Precertified Employment: 55 Current Employment: 88 Forrest Paint Co. Manufacturer of specialty coatings distributed world-wide. Demonstrated leadership in ecologically responsible production practices. Enterprise Zone Investment(s): $1.4 million Precertified Employment: 40 Current Employment: 120 Industrial Adhesives Largest manufacturer of hot melt adhesive products on the West Coast. Products distributed world-wide. Enterprise Zone Investment(s): $750,000 Precertified Employment: 13 Current Employment: 75 ~ Bulk Handling Systems Manufacturer of sorting and recycling equipment sold world-wide. Enterprise Zone Investment(s): $104,000 Precertified Employment: 23 Current Employment: 40 GloryBee Foods Leading supplier of natural foods and craft supplies to consumers, businesses~ and manufacturers worldwide. Enterprise Zone Investment(s): $637,000 Precertified Employment: 26 Current Employment: 75 Shelton-Turnbull Printers Full service commercial primer, with sales throughout the westem U.S. Enterprise Zone Investment(s): $2.8 million Precertified Employment: 85 Current Employment: 120 West Eugene Enterprise Zone investments were also made by the following companies: A & K Development Melamine Decorative Laminates Albina Wholesale Metagenics Northwest Ali-Phase Electric Murphy's Specialized Services Alta Timber Northern Factory Sales Bindery West Northwest Resource Recycling Boxmaker Packaging Obie Industries Cascade Fabrication Oregon Select Carothers & Sons Orkot Engineering Plastics Econo-Call, Inc. Pacific Display Company Eugene Print Pacific Rim Woodworking Forrest Paint Pacific Rollformer Mfg. Glorybee Foods Point Control Heli-Tech Rosen Product Development HMT Technology Safeway Stores Industrial Litho (Ad Group Inc.) Schaffner Cabinets Industrial Adhesives Sew-On, Inc. Industrial Electric Service Shamrock Steel International Components Specialty Laminate USA J. Co. Feed Swenson Brothers James Heating & AC Valhall, Inc. Johnson Crushers International Western Pneumatics L.D. McFarland Co. Wheeler Construction L & H Welding Willamette Valley Company Lile International Co. Yale Material Handling Northwest APPENDIX A (Copies of City and County resolutions to be added) APPENDIX B West Eugene Enterprise Zone Boundary \ West Eugene Ente~rise Zone Bounda~ ~ Eugene Urban Growth Bounde~ o o,3 0.6 0.9 Total ~ Eugene Ci~ L/m/ts Amrage: 5946 Square Niles: 9.29 Ranning and Development ~bn~a~ 8, 2005 APPENDIX C Measures of Economic Need and Hardship A map indicating the "Targeted Community" as defined in OAR 123-065-1600(5) is included in Appendix C-2. Population for whom Poverty Population with Census Status is income Below Tracts determined Poverty Level 003900 2,010 553 004000 2,491 597 004200 4,037 1,465 004300 6,496 819 004401 6,204 1,103 004403 4,757 1,058 004500 5,591 1,390 Total I 31,5861 6,985 Percent Below Poverty: Target Community 22.11% State Poverty Level = 11.61% Source: U.S. Census Bureau, Census 2000, Summary File 3, Table P89 Per Capita Income Census Total Tracts Population Aggregate Income 003900 2825 45,737,200 004000 2435 43,293,000 004200 4066 48,841,600 004300 6515 111,805,100 004401 6204 102,699,200 004403 4883 67,184,400 004500 5639 99,303,100 Total: 32,567 I 518,863,600 Per Capita Income: Target Community $15,932 State Per Capita Income = $20,940 Source: U.S. Census Bureau, Census 2000, Summary File 3, Table P1, P83 Appendix C-2 West E~ ene Enter ' Zone: T~ eted Communil ~ "~ ~ [' i' ,..: ~ Miles I~West Eugene Enterprise Zone Boundary o 0.25 0.5 0.75 ~ Census Tracts [] Enterprise Zone Target Area City of Eugene Planning and Development February 8, 2005 ........ APPENDIX D Significant Suitable Land for Enterprise Zone Development There are approximately 5,564 acres of industrial zoned property within the Eugene Urban Growth Boundary (UGB). With 4,963 acres of industrial zoned property located within the proposed West Eugene Enterprise Zone, 89% of the industrial property located within the UGB will be included in the proposed Enterprise Zone boundary. A detailed zoning map is included in Appendix D-2. Approximately 1,792 acres of vacant land has been identified within the proposed West Eugene Enterprise Zone boundary, of which 1,401 acres are included within parcels greater than four acres in size. Additionally, the boundary includes an ongoing, adequate supply of previously-developed properties actively marketed for sale or lease. These previously-development sites are important targets for redevelopment and infill development investments. A portion of the vacant land within the proposed boundary is included in the Greenhill Technology Park, which includes approximately 140 acres of vacant land. There are 40 acres within the Greenhill Technology Park that are included in the State of Oregon's Industrial Site Certification program. The City of Eugene has spent the past few decades planning and providing necessary infrastructure for the industrial areas included within the proposed boundary. There is sufficient, existing infrastructure and utility service available to all of the sites within the proposed boundary. A complete map of vacant land is included in Appendix D-3. Appendix D-2 West E~ ene ' Zone: Industrial Zoning .......... .: ...... ~ :., ~ · · ....! i:::~ :'"' : '~ .... ~ Miles West Eugene Enterprise Zone Boundary Total Industrially Zoned Acres in Enterprise Zone: 4963.26 o o,3 0.6 0.9 1..2 [] C-4, Commercial/Industrial, Acres: 42.67 City of Eugene Urban Growth Boundary [] I-1, Campus Industrial, Acres: 446.86 [] I-2, Light / Medium Industrial: 2034.51 City of Eugene~ [] I-3, Heavy Industrial, Acres: 2439.21 Planning and Development February 8, 2005 Appendix D-3 West E~ lene Enter ' Zone: Suitable Industrial Land \ ~; , ~ ~,~ ~:,,,i ) , " ~i ~ Miles OWest Eugene £nterprisa~on~ Boun~ar~ L~nO o o.a5 o.5 0.75 ~ fage~e ~6~ ~ kots ~it~ kess tba~ 4 Acres ~ kots ~it~ ~ore t~a~ 4 Acres Ci~ of Eugene Planning and Developmen~ ~brua~ Z 200~ ~ APPENDIX E Notification to Affected Local Taxing Districts (Notification letters and responses to be added) APPENDIX F Summary of Other Economic Statistics and Circumstances The Important Role of Manufacturing in Lane County's Economy In Lane County, manufacturing's share of industry mix over the last 22 years has gone from 21,250 jobs and 22 percent of total employment in 1978 to 23,660 jobs and 17 percent in 2000 (Graph 1). Over the same period, the services industry has increased its share of industry mix from 17 percent to 27 percent, and lumber and wood products employment decreased by 7,172 jobs, almost 50 percent. The result is a higher percent of people working in the lower wage service sector, and a widening wage gap when compared to Oregon and the nation (Graph 2). In 1978, annual average wages were $32,830 in Lane County. By 2002, inflation adjusted wages had reached $29,450 after bottoming out in 1990 at $26,950. Lane County Historic Indus~ Mix Change {SIC b,.~ed) For., & Fl*h Ce~ien & ~g OMl~y O O~ GA O, t 5 0:2 0.25 Inflation Adjusted Annual Average Wages (2002 Dollars) ............................................ ............................................ Manufacturing represents the second largest (14%) employment sector in Lane County, second only to Government (16%). Not all jobs in the service sector are low paying, but the majority pay less than those in manufacturing. The average manufacturing wage in Lane County is approximately 20 percent higher than the County's average wage. Because Eugene has the largest manufacturing base in the County, it is essential that Eugene stabilize and grow its manufacturing sector employment. In addition to the negative effects associated with changes in Lane County's industry mix, several business closures have impacted employment opportunities in the local area (see list below). Business Closures Jobs Lost HMT Technology 350 Sony Disc Manufacturing 277 Rosen Products 225 Stream 206 Emporium Corporate Headquarters 200 Dynamix 97 Advanstar Communications 50 Total 1,405 The re-establishment of an Enterprise Zone in Eugene is seen as an important tool for attracting new job-creating investments, particularly in the important manufacturing sector. The Enterprise Zone is also viewed as an important tool for the retention of the existing manufacturing employment base that is critical to the local economy. Crime Statistics The Eugene Police Department compiles crime data for all areas of Eugene. City-wide data for the most serious criminal offenses (homicide, rape, robbery, aggravated assault, and felony drug offenses) indicates that the number of serious crimes per capita is significantly higher within the core of the proposed West Eugene Enterprise Zone boundary, and within areas that are immediately adjacent to the proposed boundary. A detailed mapping of serious crime activity is included in Appendix F-2. Growth Management and Sustainable Development Eugene continues to absorb its developable land supply. In the context of Oregon's land use laws, and Eugene's Growth Management Policy, redevelopment, infill development, and brownfield development is strongly encouraged. Because these types of development are characterized by higher costs and greater risk (when compared to greenfield development) the Enterprise Zone tax exemption is considered to be an important redevelopment tool which forwards the community's growth management and sustainability goals. Weed & Seed Crime Per 1,000 Population FY03 - 04 Homicide, Rape, Robbery, Aggravated Assault & Felony Drug Offenses ........... EUGENE UGB '~ MAJOR STREETS RAILROAD WATER FEATURES FY03 - 04 W & S Crime Per 1K Population 0 ~ 0.0077 0~0077 - 0.0158 ~ 0.0158 - 0.0314 ~ 0,0314 - 0.0472 ~ 0.0472 ~ 0.2234 SPRINGFIELD CITY LIMITS SPRINGFIELD UGB r-~ COBURG CITY LIMITS N S I 0 1 2 Miles Eugene Police Department Eugene, Oregon 9f23/2004 - SOL APPENDIX G Summary of Education, Training, Counseling and Job Placement Opportunities Lane Workforce Partnership The Lane Workforce Partnership (LWP) is a workforce development organization dedicated to assisting employers recruit and retain employees, and to help individuals find employment and progress in their careers. LWP works with over 450 employers in Lane County and over 5,000 Lane County residents annually. LWP is overseen by a board of directors (the majority from business). The board is made up of representatives from business, labor, community-based organizations, state agencies and local government. The Lane Workforce Partnership sets policy direction and oversees workforce development programs under the Workforce Investment Act. In addition, LWP is the prime contractor for the JOBS welfare-to-work program. The Workforce Network Created by LWP, The Workforce Network is an alliance ofworkforce organizations including Lane Community College, Oregon Employment Department, Vocational Rehabilitation Services, Oregon Department of Human Services, and LWP. The Workforce network is dedicated to assisting employers recruit and retain employees, and to help individuals leam new skills, find employment and progress in their careers. Business services provided through The Workforce Network assist business with staffing, recruitment, and training needs. The Workforce Network also provides tools to aid job seekers in such areas as job search, job placement, skills enhancement and training. The following business services are provided: · Recruit, screen and refer applicants · Test applicants for skills and aptitudes · Consult on workforce needs ' · Coordinate customized skills training · Provide a place for businesses to conduct interviews · Provide labor market information · Broker ofworkforce information and services The Workforce Network also helps individuals learn new skills, find employment and progress in their careers. Services are provided to all individuals, regardless of income or employment status. The Workforce Network has tools to help determine what jobs best match individual interests and skills. The following job seeker services are provided: · Skills assessment · Career exploration and counseling · Job search strategies and job placement · Resume preparation · Job opening information · Information on community resources · Internet access to employment and training resources · Executive Career Finders Lane Community College Lane Community College (LCC) is a comprehensive community college. The college offers a wide variety of instructional programs including transfer credit programs, professional tectmical degree and certificate programs, continuing education noncredit courses, programs in English as a Seco:nd Language and International ESL, GED programs, and customized training for local businesses. Classes are offered at many locations, and online classes and telecourses are also available. More than 15,000 students take credit classes at LCC each year. During the 2002-03 school year, 15,299 stude:nts enrolled in credit classes and 19,095 people enrolled in :noncredit classes, iLCC has the third largest enrollment of the 17 community colleges in Oregon. LCC's Contract Training and customized programs are a major source for education and training that benefits employees and employers. LCC training programs offer skill training for employees and company-specific education and training for employers. LCC has provided customized training in areas such as computer skills, CAD/CAM manufacturing, metallurgy, equipment operation, productivity improvement, English as a second language, and customer service. LCC also has the capacity to create new company-specific training and courses. LCC also prowides Community iEducation coursework in areas such as business skills, computers, .job and career training, leadership and management, welding, and writing. Lane Community College Business Development Center The Business Development Center (BizCenter) provides practical information and a wide range of educational services and resources for business success. The BizCenter provides assistance to established businesses and start-ups. The following services are provided at the BizCenter:: · develop business skills in workshops and classes for owners and employees. · network with other owners and learn proven business practices in a comprehensive business management program. · develop strategies for business improvement with the help of a business advisor. · find assistance in writing business plans and loan proposals and in preparing financials at the Business Capital Resource Center. · find helpful information in the books, literature, and Internet access in the Resource Library. · arrange customized workforce training for businesses of all sizes and types. University of Oregon Eugene is home to the University of Oregon, a major asset for both employment and entrepreneurial support. The University plays a significant role in providing local businesses with a continuous pool of highly-educated and well-trained employees. Through the University's various colleges and professional schools, a broad range of technical and general job-related skills are developed and enhanced. The Lundquist College of Business, one of the best business programs in the nation, is focused on developing skills and knowledge that foster the development of successful business managers and entrepreneurs. The College also includes the Lundquist Center for Entrepreneurship. Through a variety of offerings, including both academic credit and non-credit, the University's division of Continuing Education provides a wide range of educational opportunities. The Continuing Education department offers corporate education opportunities to meet the ever changing technology and business needs of professionals in every type of industry. Training programs can be custom designed to meet specific organizational needs. The Community Education Program provides access to credit courses without formal admission to the University. The Sustainability Leadership Academy provides non-credit professional development programs and credit courses for business managers. The University is also home to the Labor Education and Research Center (LERC) and the Office of Technology Transfer. LERC serves as a link between the labor community and the resources of the University, and is focused on outreach to the labor community through its education programs and training for leadership in the workplace. The Technology Transfer program serves as the catalyst for analyzing and fostering discoveries that have potential for commercialization. Northwest Christian College Eugene is also home to Northwest Christian College (NCC). In addition to offering undergraduate courses in Business Administration, NCC has a degree completion program for working adults in professional areas such as Management and Management Information Systems. NCC's Career Center links students with employers. Southern Willamette Research Corridor The City of Eugene is a member of the Southern Willamette Research Corridor (SWRC) whose major focus is linking the educational assets of the region with the training and research needs of the private sector. The mission of the SWRC Consortium is: To stimulate and support continuing economic development and diversification in the southern Willamette Valley. To increase its recognition as a major research and technology center by coordinating and promoting cooperative activities of educational institutions; industry; and local, state, and federal government. S WRC's primary objectives are: Strengthening the relationship between higher education institutions, private sector businesses and government Facilitating the technology transfer process Educating the public on the importance of the Research Corridor Advocating for legislative priorities APPENDIX H Summary of Local Economic and Community Development History and Activities 1981 The Six-Point Program for Economic Diversification was first articulated in 1981, during the timber recession of the early 1980s. This policy focused on economic diversification and halting the deterioration in the local economy based on the following long-term objectives to: · Reduce unemployment; · Increase quality job opportunities; · Increase per capita net income; · Lower commercial and industrial vacancy rates; · Increase the city's regional retail market share; retain or increase retail market share in downtown Eugene; · Increase business starts and expansions. 1982 Action Plan. Within the context of the Six-Point Program for Economic Diversification, an Action Plan was developed to carry out the program's objectives. The plan recognized that the City's role in economic development was best served by focusing more on long-range goals while acknowledging that some quick steps also needed to be taken, and that diversification would occur largely through the expansion of local firms. The plan also recognized that financial institutions, developers, businesses, and private business associations play a major role in successful economic development. The 1982 Action Plan contained the following key points: a. Industrial Siting ensured an adequate supply of industrial lands and I-1 Light Industrial Zoned Land for the City's developable land inventory; b. Core Area Redevelopment focused on development and redevelopment opportunities in the central areas of Eugene. Loan assistance programs were available for housing rehabilitation and economic development; c. Small Business Assistance, in cooperation with the Eugene Chamber of Commerce, Lane Community College, and the University of Oregon, took aim at facilitating business expansion, increasing business capacity, and streamlining the development process; d. Destination Point Activities marketed Eugene as a tourist, convention, and entertainment center. The Hult Center for the Performing Arts, Eugene Conference Center, and the Hilton Hotel all opened in the early 1980s as part of efforts to rejuvenate Eugene's urban core; e. Employment and Training continued the link between economic development and the Eugene Job Training Center, recognizing that there is a critical connection between economic development, a qualified work force, and supporting training programs that matched available workers with employer needs in the community; f. Capital Improvements Program recognized that infrastructure is a fundamental key to economic development and funded four major projects: land acquisition for Mahlon Sweet Field, airport terminal expansion, the Eugene Centre, and the West Eugene sewer line. In 1985, the Action Plan was updated to better reflect the changing conditions of the local economy. Accomplishments of the 6-Point Plans included the creation of a) the Business Assistance Team in 1982, b) capitalization of the Business Development Fund, c) the start-up of the Willow Creek Park One Industrial Incubator, d) merger of City and County job training programs, e) formation of the Eugene/Springfield Metropolitan Partnership in 1985, f) streamlining of the City's business development regulations, and g) creating the Permit and Information Center as a one-stop center. 1988 Economic Development Strategic Plan. The 1988 Economic Development Strategic Plan continued the City's crucial role in infrastructure development, land use planning, public safety, and other essential City services. The Strategic Plan specifically focused on positioning Eugene as a regional center for west and southwest Oregon. Key policies in the Strategic Plan included building on successful strategies that were implemented in the previous Action Plan with a stronger emphasis on Eugene as a regional center. The 1988 Economic Development Strategic Plan contained the following key points: a. Site Planning ensured an adequate supply of commercial and industrial land. b. Public Works responded to site-specific infrastructure requirements for development requests. c. Business Assistance/Job Retention continued efforts to increase Eugene's business and employee capacity to respond positively to new opportunities. d. Marketing and Recruitment continued the City's involvement in the Metro Partnership to recruit new businesses into the region. e. Special Events and Cultural Affairs worked to strengthen Eugene as a destination and events center. f. Coordination/Evaluation stressed the importance of working with community partners and providing an annual evaluation of the Plan. g. Establish Eugene as the regional service center for commerce, government, retail trade, research industries, special events, and cultural affairs. Desired outcomes in the Strategic Plan included the recruitment of health and financial services industries, non-industrial recruitment, and the strengthening of retail business in downtown Eugene. 1994 Council Committee on Economic Development. Council revisited economic development policies in 1994. The Council Committee on Economic Development (CCED) was reinstated to determine "what actions, if any, should the City of Eugene take to promote economic development that benefits its citizens?" The high-priority strategies and actions recommended by CCED included: a. Improve the regulatory process; b. Develop more effective methods of providing information to persons engaged in economic activities; c. Assist businesses; d. Promote an adequate supply ofbuildable sites; e. Promote/provide adequate infrastructure to enhance competitive environment for business; and f. Promote local workforce quality. Although the Council took action to generally support these strategies, a subsequent action plan did not emerge for Council consideration. A copy of the CCED report is attached as Appendix B. 1998 Growth Management Policies. The last economic development policy action taken by the Council was incorporated within the 1998 Growth Management Policies. Policy #16 directed that: "Efforts to diversify the local economy and family wage jobs will focus on small, local, and environmentally sensitive business. Direct available financial and regulatory incentives to support these efforts." Examples of possible actions in the Eugene Growth Management Study included: a. Create criteria to define specific public benefit that the City wishes to achieve through its economic development efforts. b. Refocus Enterprise Zone and other financial incentives to support the public benefit criteria, c. Continue efforts to streamline regulatory process to support policy focus, d. Continue to provide timely response to specific information requests, e. Support neighborhood businesses and business associations, f. Develop closer linkages with local job training agencies, g. Adopt clear performance measures for the economic development efforts. 2004 Mayor's Committee on Economic Development. In January 2004, the Eugene City Council approved the Mayor's request to establish the Mayor's Committee on Economic Development. The charge of the Committee was to identify key actions that could have immediate effects on economic development in Eugene. The Committee recommended that the following tools be adopted: · The City Council should support and contribute to a regional buildable lands analysis of available commercial and industrial land that is consistent with state requirements and that earns broad public support. · The Eugene Land Use Code should be made simpler, and that it be intuitive, adaptable, enabling to staff, logical, strategic, and fair. Additionally, the code should be reviewed on an annual basis. · The City Council and Budget Committee should fund a facilitator to assist businesses with expansion, coordinate multi-agency review of development permits, assist in developing methods and policies to help streamline permitting process, and make recommendations on addressing Land Use Code revisions. · The City of Eugene should establish an Enterprise Zone. Its boundaries should include the previous West Eugene Enterprise Zone properties, plus a relatively small amount of adjacent industrial-zoned properties that were not included in the previous zone. · Urban Renewal Districts are a powerful tool for economic development. The City should explore how this tool has been and could be used in Eugene, looking at boundaries, governance, models, and reinvestment strategies. · The City of Eugene should continue to support quality infrastructure. APPENDIX I Summary of Proposed or Recent Enhancements to Public Services Eugene Airport The Eugene Airport is immediately adjacent to the westem boundary of the proposed West Eugene Enterprise Zone. The Eugene Airport is the fifth-largest airport in the Pacific Northwest, providing commercial air service to a six-county region in mid- Oregon. The airport also has an expanded air cargo facility to serve the growing air cargo demands of the region. In 2004, the Eugene Airport received a $10 million grant from the federal Airport Improvement Program that will be used to make airport improvements that support future development. The improvements include construction of a new runway that runs parallel to an existing runway, and the realignment of Greenhill Road and Airport Road. In May 2004, Delta Connection carrier SkyWest Airlines began twice daily non-stop jet service between Eugene and Salt Lake City. This air service initiative is the result of a two-year effort by the Eugene Area Chamber of Commerce and the Eugene Airport to secure competitive eastbound air service. Transportation Improvements There have been significant recent road improvements in West Eugene. The widening of Beltline Highway, between Barger Avenue and Roosevelt Boulevard, has been completed. Roosevelt has been extended from Beltline to Danebo Drive. Improvements of over $50 million are planned for the interchange at Interstate 5 and Beltline Hwy. The project will include the construction of a northbound to westbound flyover; realignment of the southbound off ramp, and construction of a bike/pedestrian bridge. Beltline Hwy, via Interstate 5, is the major access route to and from the West Eugene industrial area. Public Safety Station The Bethel Public Safety Station 0IPSS) is Eugene's fourth neighborhood public safety station, located at 464 Highway 99N in Eugene (within the proposed Enterprise Zone boundary). Funding for the Station is jointly provided by the Bethel Weed & Seed grant and the Eugene Police Department. The neighborhood public safety station is an element of community policing and partnerships with a firm commitment to prevention services. The BPSS was established in January 2004. Bethel School District A majority of the proposed West Eugene Enterprise Zone is included within the Bethel School District boundary. The District has recently completed construction of two new K-8 schools, Meadow View and Prairie Mountain. Kalapuya High School, a new alternative high school, has also been established recently. APPEINDIX J Summary of Local Incentives and Regula tory Flexibility for Enterprise Zone Firms City of Eugene Business Development Fun~ The Business Development Fund (BDF) is ~ local public financing program offered through the City of Eugene to assist local ec )nomic development. The loan program is designed to meet the needs of the communil y by making business loans for projects that create new jobs. Since its establishment in ~ 984, the BDF has made loans totaling over $12 million, resulting in over 1,400 new job created. Lane Council of Governments Loan Progrm ts Lane Council of Governments (LCOG) paclrages, administers, and services commercial loans in Lane County. LCOG programs arc,, targeted towards sustaining economic development and creating new jobs. LCOG helps business borrow from one of many programs, including Small Business Admin.stration (SBA) and State of Oregon programs. Special Development Services The City of Eugene's Building & Permit Se rvices offers Predevelopment Conferences for projects that contain complex or multipl: issues in which a formal meeting with a facilitator and minutes recorder would be b~..neficial. Meetings are facilitated by City staff, and a written record is produced for th e applicant. Limited Consultations are also offered for preliminary review of projects a~ id issues in a more informal setting. The City's Building & Permit Services may also be able to issue Phased Building Permits under which separate permits are i~'.sued for phased construction to increase the time line flexibility for building permits on large projects. These phased permits enable applicants to maintain construction schedul,:s while allowing the City adequate time for plan review. APPENDIX K Summary of Attributes and Plan for Marketing City o.f Eugene The West Eugene Enterprise Zone will be managed and marketed by the Community Development Division in the City of Eugene's Planning & Development Department. The Community Development Division currently manages and markets other economic and community development incentives and programs including: · Business Development Fund loan program · Commercial Revitalization Loan Fund · Vertical Housing Development Zone · Multi-Unit Property Tax Exemption · Downtown Urban Renewal District · Riverfront Urban Renewal District · Housing Rehabilitation Loan Fund · Homeowner Assistance Program · Emergency Home Repair loan program The Enterprise Zone will also be marketed jointly with the other two divisions housed within the Planning & Development Department - Building and Permit Services and Planning. Building and Permit Services provides permit review, land use management, and inspection services. Planning processes land use permits and is engaged in metropolitan and community planning. A West Eugene Enterprise Zone information site will be created and included on the Planning & Development intemet webpage, along with traditional marketing brochures and handouts. Lane Metropolitan Partnership The Lane Metro Partnership will play a vital role in the marketing of the West Eugene Enterprise Zone. Their mission is to provide leadership for the economic development efforts in Eugene/Springfield and throughout Lane County, fostering business investment which creates job opportunities for our citizens and a more diverse and stable economy. The Metro Partnership is the official source of economic development and business information for Eugene, Springfield and Lane County Oregon. The Metro Partnership provides all types of business information in order to support economic development. The county's only comprehensive, computerized inventory of vacant industrial land and buildings is maintained in an industrial site map by the Metro Partnership. In addition, summaries of various kinds of assistance and incentive programs; current fact sheets on utility rates, taxes, demographics; and working knowledge of systems, development charges and related issues are a few examples of the type of information the Lane Metro Partnership develops and provides to local and outside companies. Eugene Area Chamber of Commerce The West Eugene Enterprise Zone will also be marketed by the Eugene Area Chamber of Commerce. The Chamber plays an active role in providing business information and business assistance through its Business Assistance Director and Business Resource Directory. The Chamber also conducts an annual business CONTACT program which is an outreach program intended to identify company needs, particularly companies that are poised for expansion and need assistance. Local Media The Eugene Register-Guard newspaper has a daily Business section which actively covers local economic development projects and issues. The Zone Manager will work with Zone participants and the media to provide coverage of companies that benefit from the Enterprise Zone program. APPENDIX L Summary of Relevant Strategic Planning Business Climate Survey In 2003, the City of Eugene commissioned a study of"Perceptions of the Business Climate in Eugene". Perceptions of a community's business climate have important implications for local businesses and economic development efforts. Several themes emerged from the data gathered for this project. First, the business community generally has a negative image of the business climate in Eugene, and the business community feels that the City could do more to support local business. Secondly, the study results suggest that the business community strongly favors policies that encourage economic growth, and that removal of economic development barriers and creation of local economic development incentives are effective methods for improving the business climate in Eugene. Mayor's Committee on Economic Development In 2004, the Mayor's Committee on Economic Development recommended the establishment of an Enterprise Zone in Eugene. The Committee acknowledged that Eugene has a limited number of tools available to encourage economic development, and that Eugene's lack of an Enterprise Zone results in a competitive disadvantage for new investment, and retention of existing investments. A subcommittee of the Mayor's Committee was established to specifically review options for creating a new Enterprise Zone in Eugene. The subcommittee concluded that the former West Eugene Enterprise Zone was an effective tool for encouraging new investment, especially for existing, local companies. The subcommittee recognized that Eugene has spent the past twenty-plus years planning and providing infrastructure investment to the industrial properties in the West Eugene area. Overlaying the short-term tax incentive on this area would help assure that the City receive a long-term return on these infrastructure investments. The subcommittee also considered ways that the Enterprise Zone could be enhanced to promote City goals such as attractive wages and sustainable economic development. The Mayor's Committee presented their recommendations to the Eugene City Council in August 2004. Buildable Lands Inventory Consistent with the recommendation from the Mayor's Committee on Economic Development, the City of Eugene, the City of Springfield, and Lane County have committed funding for an analysis of available commercial and industrial land so that an adequate supply of buildable land is maintained in support of Oregon land use laws and community economic development goals. The analysis is expected to be completed by the end of 2005. APPENDIX M Summary of Management Plan for the Enterprise Zone Management of the West Eugene Enterprise Zone will occur within the City of Eugene's Planning & Development Department (Community Development Division). Denny Braud, Development Analyst in the Community Development Division, will oversee management of the proposed West Eugene Enterprise Zone. He served as Zone Manager for the expired West Eugene Enterprise Zone from 1993 through 1997, and has continued to manage "grandfathered" investments in the expired zone for the past seven years. Historically, zone management has successfully processed 74 enterprise zone tax exemptions. Lane County Assessment & Taxation will continue to play an active role in the management of the proposed West Eugene Enterprise Zone. Assessment & Taxation currently oversees management of activity in the expired West Eugene Enterprise Zone, along with activity in four other Lane County zones - Springfield, Florence, Cottage Grove, and Oakridge/Westfir. APPENDIX N Summary of Local Coordination The City of Eugene has a history of strong intergovernmental cooperation. Local coordination will be provided through the City of Eugene's Planning & Development Department and its Zone Manager. The Planning & Development Department currently oversees and coordinates various land use and regulatory issues. The City of Eugene is an active partner with other key stakeholders including Lane County, Lane Council of Governments, the Lane Metro Partnership, Chamber of Commerce, and the State of Oregon. In addition, the Eugene Planning & Development Department has an active Neighborhoods program which serves as a forum to provide information, and discuss and resolve issues. APPENDIX P Summary of Public Support for Enterprise Zone Mayor's Committee on Economic Development In January 2004, the Eugene City Council approved the Mayor's request to establish the Mayor's Committee on Economic Development. The City Council charged the Committee "to provide for reviews of past economic development strategic plans, identification of elements that are relevant today, and identification of gaps and areas of opportunity for improvement." The Mayor called upon the Committee to forward meaningful and specific recommendations to the City Council for consideration in the fall of 2004. The charge from the Mayor to the Committee was to move quickly to agreement on a few key actions that could be accepted by the City Council and could have immediate effects on economic development in Eugene. The Mayor acknowledged the history of controversy in Eugene regarding economic development, and the difficulty of agreeing on policies to encourage economic development in ways that are compatible with other City goals regarding environmental quality, public amenity, fiscal responsibility, and fairness. Thus, he did not charge the Committee with creating a complete economic development plan. Rather, his hope was that the Committee members, whose backgrounds reflect the diversity of opinions in Eugene, could find some common ground that could be the foundation for a community-supported economic development strategy that the City Council could adopt. The Committee met eight times from March through July. It discussed existing economic policies and different tools that could improve the economic climate in the City of Eugene. The final recommendation included support for the establishment of an enterprise zone in Eugene. Eugene Area Chamber of Commerce Economic Development Council Financial incentives were identified by the Chamber's Economic Strategy Team to be one of the primary tools used by successful small metropolitan communities that had a positive economic impact on their ability to create jobs. Furthermore, they concluded that the impact of the prior Enterprise Zone in Eugene reflected a net gain for the community. The Chamber's Economic Development Council recommended that the City of Eugene apply to the State of Oregon for designation of an Enterprise Zone in Eugene. A summary of the recommendation is attached. -(Support letters and other supporting documents to be added) APPENDIX Q Immediate Investment Opportunities (Investment opportunity letters to be added)