The URL can be used to link to this page

Home My WebLink AboutOrdinance No. 20586 COUNCILORDINANCENO.20586 COUNCILBILL5165 ANORDINANCEAMENDINGTHEWESTEUGENEENTERPRISEZONE PUBLICBENEFITCRITERIAANDSCORINGSYSTEMESTABLISHEDBY ORDINANCENO.20368ANDPROVIDINGANEFFECTIVEDATE. ADOPTED:July24,2017 SIGNED:July26,2017 PASSED:8:0 REJECTED: OPPOSED: EFFECTIVE:ThisOrdinanceshallbecomeeffective30daysfromthedateofits adoptionbytheCouncilandapprovalbytheMayororupontheadoptionofa ResolutionorOrderoftheLaneCountyBoardofCommissionerscontaining substantiallysimilarprovisions,whicheverdateislater. ORDINANCE NO. 20586 AN ORDINANCE AMENDING THE WEST EUGENE ENTERPRISE ZONE PUBLIC BENEFIT CRITERIA AND SCORING SYSTEM ESTABLISHED BY ORDINANCE NO. 20368 AND PROVIDING AN EFFECTIVE DATE. The City Council of the City of Eugene finds that: A. On May 22, 2006, the City Council adopted Ordinance No. 20368 establishing the local Public Benefit Criteria and scoring system for the West Eugene Enterprise Zone. B. On June 8, 2016, the City Council adopted Resolution No. 5155 authorizing the City Manager to make application to the State of Oregon for re-designation of a West Eugene Enterprise Zone. C. On June 21, 2016, the Board of Commissioners adopted Order and Resolution No. 16-06-21-07 re-designating the Eugene Enterprise Zone jointly with the City of Eugene, effective July 1, 2016, or later if so stipulated by the Oregon Business Development Department. D. The Oregon Economic and Community Development Department approved the application and designated the West Eugene Enterprise Zone, effective July 1, 2016. E. In the summer of 2016, a joint City/County task force comprised of two city councilors, two county commissioners, and four community members was convened for the purpose of reviewing the West Eugene Enterprise Zone Public Benefit Criteria and scoring system that had been adopted by Ordinance No. 20368. The task force met through April 2017, providing opportunities for stakeholder participation and community involvement, including public hearings, and developed a proposal for amendments to the Public Benefit Criteria and scoring system. Attached as Exhibit A to this Ordinance is the West Eugene Enterprise Zone Public Benefit Criteria and scoring system with the amendments recommended by the task force. F. In developing its recommendation the task force gave consideration to the support of existing businesses and retention of existing jobs as important elements of the West Eugene Enterprise Zone. NOW, THEREFORE, THE CITY OF EUGENE DOES ORDAIN AS FOLLOWS: Section 1. Based on the above findings which are adopted, the local Public Benefit Criteria and scoring system for the West Eugene Enterprise Zone established by Ordinance No. 20368 are amended as set forth in Exhibit A attached to this Ordinance. Ordinance - Page 1 of 2 ExhibitA WestEugeneEnterpriseZone PublicBenefitCriteria BusinesseswhoparticipateintheWestEugeneEnterpriseZone(theZone)arerequiredtomeet 1 additionalPublicBenefitCriteriainordertoqualifyforthefulltaxexemption.TheCriteriaencourage businessestotakestepstowardsachievingcertaincommunitygoalsandpriorities. Step1outlinestheninepublicbenefitcategories.Step2outlinesthejobcapcriteriathatlimitsthe amountoftaxexemptionabusinesscangetdependingonthenumberofjobscreated. Step1 Abusinessneedstoget25pointsormoretoqualifyforthefullexemption Tier1Criteria Abusinessneedstoscoreatleast15pointsthroughTier1Criteria 1.BusinessType Thiscategorytakesintoaccountthepossibilitythatbusinessesmayhaveahardertimeearningpoints inothercategoriesduetofundingandresourcelimitations. Indicatethenumberofpermanent,fulltimeemployeesatsubmissionofthe OregonEnterpriseZoneClaim. Lessthan25employees=9points Upto9points Between2549employees=7points Between50and99employees=5points Between100and499employees=2points Businessisaminorityowned,womenowned,ordisadvantagedbusiness 1point enterprise.* *Businesswillbeaskedtoprovideadditionalinformationforpointsclaimed 1 AuthorizedbyORS285C.150 {00222853;5} 2.Wages Thiscategoryrewardsbusinessesthatofferhighwagestoallemployees.SincetheEnterpriseZonesis * designedtoincentivizeinvestmentsamongtradedsectorindustries,thethresholdismedian wages**fortradedsectorindustries. *Tradedsectorindustriesincludemanufacturing,wholesaletrade,&transportation/warehousing(definedbytheOREmploymentDept.) **Ifallsalarieswerearrangedinorder,themedianwagewouldbetheonewithexactlyhalfthedataaboveitandhalfbelowit.The medianwageisconsideredtobeamoreaccuratereflectionoftheͷğǝĻƩğŭĻ͸wagebecauseitdiscountsextremesateitherendsofthescale. Companieswith25ormoreCompanieswithfewerthan25 employees:employees: 9points ThemedianwageforALLemployeesThemedianwageforALLemployees is equaltoorgreaterthan100%oftheis equaltoorgreaterthan85%ofthe medianwageforthetradedsectormedianwagefortradedsector industrieswithinLaneCountyindustriesinLaneCounty ThemedianwageforALLemployeesThemedianwageforALLemployees is equaltoorgreaterthan120%oftheis equaltoorgreaterthan100%ofthe 1point medianwageforthetradedsectormedianwageforthetradedsector industrieswithinLaneCountyindustrieswithinLaneCounty 85%of2016MedianWage=$15.39perhour 100%of2016MedianWage=$18.11perhour 120%of2016MedianWage=$21.73perhour IftheLaneCountytradedsectormedianwagedropsbelow120%oftheminimumwage,thenall companiesshouldofferwagesatorabove120%oftheminimumwagetoreceivepoints. In2016,120%ofLane/ƚǒƓƷǤ͸ƭminimumwageis$11.10perhour. Page 2 of 5 {00222853;5} 3.LocalHiringandSourcing Thiscategoryemphasizestheimportanceofusingavailablelocalresourcesandnetworksforbusiness operations.Itfocusesonusingprogramsandpracticesthatofferemploymentservicesandtrainingto localjobseekers.Theseprogramsalsoworkwithemployerstoidentifygoodmatchesforspecific positions.Thecategoryalsoencouragesbusinessestosourcetheiroperationalmaterialsfromwithin theregionifpossible.Maximumtotalof9points. Thecompanyhascreatedaprocurementplan*thatdemonstratestheir intentiontosourcematerialsneededforregularbusinessoperationsfrom: Upto2points withinOregon=1point withinLaneCounty=2points ThecompanyutilizedStateapproved(OregonApprenticeshipandTraining 1point Division)apprenticeshipprogramsduringconstructionoftheexempt investment.* AfterconsultationwiththeCityof9ǒŭĻƓĻ͸ƭMinorityandWomenBusiness 2points EnterpriseContractingSpecialists,thebusinesshascreatedapolicyorprogram forcontractingwithmoreMWBEbusinesses. ApercentageoftheĭƚƒƦğƓǤ͸ƭnewhireshavebeenthroughlocal training/referralagencies:* Greaterthan10%=1point Upto3points Greaterthan30%=2points Greaterthan50%=3points Companyhasadiversityorequityplanorpolicythatoutlinesthestepsthey 1point aretakingtointegratediversityintotheworkplaceandthehiringprocess.* *Businesswillbeaskedtoprovideadditionalinformationforpointsclaimed 4.EmployeeBenefits Thiscategoryisdesignedtoencouragebusinessestoofferadditionalbenefitsthatarenotmandated butcancreateamorepositiveworkenvironmentforallemployees.* 1point Childcare 1point LifeInsurance EmployerPaidTimeOff (aminimumof10days;includesholiday,vacation,sickleave, 1point undesignatedleave) 1point ProfitSharing 1point RetirementPlan 1point Transportation WellnessProgram1point *Businesswillbeaskedtoprovideadditionalinformationforpointsclaimed Page 3 of 5 {00222853;5} Tier2Criteria PointswillbecombinedwithTier1pointsfortotalpoints,andabusinessneeds toscoreatleast6pointsfromTier2Criteria. 5.Sustainability Thiscategoryawardspointstobusinesseswhohavemadeanefforttoreducetheirimpactonthe environment.Thissupportsthe/źƷǤ͸ƭeffortstoaddressclimatechangeandenergychallenges.The criteriaalignswiththe/źƷǤ͸ƭClimateRecoveryOrdinanceandActionPlanwhichaimtoreducecarbon pollutionandtheĭƚƒƒǒƓźƷǤ͸ƭfossilfueluse.Thecriteriafocusesonenrollmentin.wLbD͸ƭRE:think program,asitprovidesacomprehensiveconsultationthatcoversanumberofareas.Thecriteriaalso includespointsforbusinessesthatreducetheiroperationalandemployeeimpactontheƩĻŭźƚƓ͸ƭ transportationsystem. 2points Thecompanyiscertifiedin.wLbD͸ƭRE:thinkBusinessprogram. Thebusinessmeetsatleastoneofthefollowing: Participatesin\[5͸ƭPoint2Pointprogram 1pointmax HasenteredintoaTransportationDemandManagementAgreement withtheCityofEugene Thebusinesshasoneofthefollowing: AfterconsultationwiththeCity,aplantoreducetheirimpactonthe transportationsystem,or1pointmax Afterconsultationwiththe/źƷǤ͸ƭWastePreventionGreenBuilding department,aplantoreduceenergyconsumption. Thebusinessmeetsatleastoneofthefollowing: Abusinessthatisexemptfromstormwatermanagementrequirements buthasimplementedonsitestormwatermanagement1pointmax AbusinesswhohasgottenareductioninSDCsand/oruserfeesby managingstormwateronsitebeyondtheminimumrequirements ThecompanyparticipatesintheCityof9ǒŭĻƓĻ͸ƭLoveFood,NotWaste 1point program(ifapplicable) *Businesswillbeaskedtoprovideadditionalinformationforpointsclaimed 6.Redevelopment ThiscategoryalignswiththeĭƚƒƒǒƓźƷǤ͸ƭinfillandredevelopmentgoals.Itspurposeistoencourage thereuseofunderutilizedsitesandtoincreasetheproductivityofalreadydevelopedsites.The remediationcriteriaawardspointstobusinessesthathavetakenstepstoaddressonsite contamination. Theexemptedinvestmentiseither Expansionofthecurrentsite,OR 5points Redevelopmentofabrownfield,OR Redevelopmentofvacantbuilding(s) Thecompanyremediatedenvironmentalcontaminationduringthe 1point investment.* *Businesswillbeaskedtoprovideadditionalinformationforpointsclaimed Page 4 of 5 {00222853;5} 7.HealthInsurance Thiscategoryawardspointstocompanieswhooffermorehealthcarecoveragethanisrequiredby law.AsofJanuary2017,businesseswith50ormoreemployeesarerequiredtoofferhealthcare coveragetotheiremployees. Forbusinesseswithfewerthan50employees: 2points Offermedicalbenefitsforalleligibleemployees(employerpaysatleast70% ofpremium) Forallbusinesses: 3points Offersmedicalbenefitsforfamilies(employerpaysatleast60%ofpremium) 8.TrainingandAdvancement Thiscategoryisdesignedtoencouragebusinessestoprovidetrainingandadvancementopportunities totheiremployees.* AnnualtrainingexpendituregreaterthanorequaltotheU.S.average(asa 1point percentageoftotalpayroll):Annualtrainingexpenditure3.2% (Benchmarksource:AmericanSocietyforTrainingandDevelopment) Companyhasacomprehensivewrittenpolicyforwageorposition 1point advancement. (Shouldincludeitemssuchasjobdescriptions,positionclassifications, regularperformanceevaluations,stepadvancement,progressionpayschedule) 1point Companyoffersadiversityorequitytrainingforemployees CompanyhassignedaLetterofSupportfortheNationalCareerReadiness 1point CertificatewithLaneWorkforcePartnership *Businesswillbeaskedtoprovideadditionalinformationforpointsclaimed 9.InvestmentSize Thiscategoryawardspointstobusinessesthatmadeasignificantlylargeinvestmentwithinthe EnterpriseZone.Thisacknowledgesthatthesebusinesseswillbecontributinglargepropertytax paymentsoncetheinvestmentscomeontothetaxrollsaftertheexemption. Sizeofnewinvestment: Assessedvalueequaltoorgreaterthan$2,500,000=2points 4pointsmax OR Assessedvalueequaltoorgreaterthan$5,000,000=4points Step2. JobCapCriteria Thethreeyeartaxexemptionbenefitshallbelimitedtoamaximumof$96,000perjobcreatedor $32,000perjobcreatedperyear,whicheverisless.Taxexemptionbenefitsinexcessofthatamount shallbepaidasapublicbenefitcontribution. Page 5 of 5 {00222853;5}