HomeMy WebLinkAboutResolution No. 4518
RESOLUTION NO. 4518
A RESOLUTION ADOPTING ADDITIONAL LOCAL
CRITERIA APPLICABLE TO THE WEST EUGENE
ENTERPRISE ZONE.
The City Council of the City of Eugene finds that:
A. On September 8, 1986, by Resolution No. 4001, the City Council authorized the City
Manager to prepare and submit an application to the State of Oregon for designation of a West
Eugene Enterprise Zone under the Oregon Enterprise Zone Act, which application was accepted and
the West Eugene Enterprise Zone designated by the Governor of the State of Oregon.
B. The Council subsequently authorized the City Manager to seek redesignation of new
West Eugene Enterprise Zone boundaries in 1988 and 1994.
C. The current West Eugene Enterprise Zone will expire on June 30, 1997, and the City
has determined it will not apply to the State of Oregon for continuation of the Zone for FY98 as
authorized by State statutes. Under current State statutes, companies participating in the West
Eugene Enterprise Zone at the time it expires will continue to have access to exemptions (for a ten
year period) on future investments after the expiration of the Zone.
D. In addition to extending the Oregon Enterprise Zone Program for an additional ten
year period, the 1995 session of the Oregon Legislature amended the state statutes to allow local
employment-related conditions to be added to the program's eligibility criteria.
E. The Council specifically finds that it would be in the public interest to adopt the
additional local program criteria set forth in Exhibit A attached hereto and incorporated herein by
reference, in determining exemptions for future investments made by companies participating in the
West Eugene Enterprise Zone at the time it expires, and to be applicable to any pending applications,
or applications filed prior to termination of the zone.
NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EUGENE, a Municipal
Corporation of the State of Oregon, as follows:
Section 1. Based upon the above findings, which are adopted herein, the City Council adopts
the local criteria contained in Exhibit A attached hereto and incorporated herein..
Section 2. All pending applications for pre-certification, all applications submitted prior to
Resolution - 1
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the expiration of the zone, all applications filed by a company participating in the West Eugene
Enterprise Zone at the time the zone expires that subsequently seeks an exemption for future
investments after expiration of the zone, and all applications for an extension of the initial three year
exemption, shall be subject to the local criteria contained in Exhibit A attached hereto, in addition
to compliance with the State of Oregon's minimum criteria. The matrix shall constitute minimum
criteria for any extension of the initial three year exemption, but shall not limit the criteria which the
Council may consider in exercising its discretion to grant or deny the extension.
Section 3. The City Manager is authorized to adopt rules in the manner provided in Section
2.019 of the Eugene Code, 1971 to further define terms and implement the criteria in Exhibit A
hereto, so long as such rules are consistent with this Council-adopted criteria.
The foregoing Resolution adopted the 28th day of May, 1997.
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OS/21/97
WESTEUGENEENTERPmSEZONE
Criteria Matrix
I. Receive 100% Exemption. Qualifying companies would receive the standard 100% three
year exemption, but will be required to make a public benefit contribution in an amount
determined by the level of public benefit provided by the project.
II. Public Benefit Contribution. All businesses will be required to make a public benefit
payment in lieu of taxes. The amount of the annual public benefit payment shall be the greater of
the following:
a. 25% of the annual tax exemption
b. A percentage of the annual tax exemption equal to 100 minus the public benefit
points earned below.
c. The annual tax exemption minus ($5,000 x new jobs created)
Such payment will be distributed to one or more of the following based on future City Council
action:
Schools
City of Eugene
Lane County
General job training
III. 10% Customized Trainin~ Option: Large businesses (> 100 employees) will contribute 10%
of their estimated tax exemption for the purpose of providing company specific customized
training provided by a qualified trainer. Companies not utilizing customized training will be
required to contribute 10% to the general job training category.
IV. Public Benefit Points: Businesses can earn public benefit points by meeting specific criteria
as follows:
POINTS
a. Business/investment meets State criteria
- $25,000 minimum investment
- 10% employment increase
- first source hiring agreement
30
b. Annual tax exemption :s $5,000 per job created
5
Exhibit A-I
VI. Extended Exemption Local Option: Extended exemptions (5 year total) would continue to be
negotiated on a project to project basis. The negotiation process would assure maximum project
specific public benefit and allow local control of extended exemption projects. Companies
would be required to meet the State's compensation requirement (150% of average County wage)
plus additional local criteria. The additional local criteria for these extended exemption projects
shall not be less restrictive than the Criteria Matrix requirements.
MATmXNOTES:
- Maximum points: Large business = 65 Others = 75
- "Available jobs" are jobs that the local labor pool can provide employees.
- Payments in lieu of taxes would be paid to the City of Eugene and due annually on same date as
tax bill. City of Eugene would distribute funds in accordance with a local adopted policy.
- Qualifying non-government mandated benefits include: health/life/disability insurance,
retirement, profit-sharing, paid vacation/holiday, child care, transportation, sick-leave, tuition
assistance, career development/training
- Examples of qualified local training or referral agencies:
Southern Willamette Private Industry Council
Oregon Employment Department
Lane Community College
Adult/Family Services
V ocational Rehabilitation
Private Rehabilitation Agencies
Goodwill Industries
Catholic Community Services
St. Vincent de Paul
Salvation Army
- Examples of persons with employment barriers:
- Low/moderate income, disabled, injured, veteran, welfare recipient, displaced, teens/youth,
ex-felon, older workers, short-term jobs history, displaced homemaker, drug/alcohol abuse
history
- State designated Key Industries: Aerospace, Agriculture, Biotechnology, Environmental,
Fisheries, Film & Video, Forest Products, High Technology, Metals, Plastics, Professional
Services, Software
- Applicable monetary values will receive annual CPI increases.
Exhibit A - 3
c. Hire available jobs from local training/referral agencies
50%-70%
70%-85%
85%-100%
d. Hire persons with barriers to employment
5%-10%
10%-25%
25%-50%
50%+
e. 85% of new jobs pay > 85% of average county wage; or
85% of new jobs pay> average county wage; or
85% of new jobs pay> 115% of average county wage
f. Offer quality jobs: At least 15% of payroll is dedicated
to training and benefits (non-government mandated)
g. Utilize previously developed site:
Expansion at existing site
Redevelop preexisting industrial site or brownfield site
h. Assessed value of new investment 2: $500,000 per acre
I. Existing local business or local start-up
- Located in Eugene for at least 24 months
- Owner = Eugene resident for at least 24 months
j. Small company < 50 employees
k. Key Industry
I. Retention Penalty: must maintain 50% of persons hired from
Categories "c" and "d" at end of year 1. If not, must
pay back ~ of the tax abatement received from that category.
10
15
20
10
20
25
30
10
15
20
10 (+ 1pt for each % pt
above 15%)
5
30
10
5
10
5
v. Environmentally-Sensitive: Staff will prepare criteria for environmental performance in the
areas of compliance with laws and regulations and proactive environmental actions. The points
awarded for this criteria shall not exceed plus or minus 10 points. Such criteria shall be further
defined in the program's administrative rules.
Exhibit A - 2