HomeMy WebLinkAbout10/26/1987 Meeting
M I NUT E S
e Eugene City Council
Dinner/Work Session
BJ's Restaurant, 44 East 7th Avenue
October 26, 1987
5:30 p.m.
COUNCILORS PRESENT: Debra Ehrman, Freeman Holmer, Jeff Miller, Rob Bennett,
Cynthia Wooten, Ruth Bascom, Roger Rutan.
COUNCILORS ABSENT: Emily Schue.
His Honor Mayor Brian B. Obie called the work session to order.
1. DISCUSSION OF BALLOTING TO DETERMINE INTERVIEWEES FOR DOWNTOWN
COMMISSION, PLANNING COMMISSION, AND THE EUGENE-SPRINGFIELD
METROPOLITAN PARNERSHIP OPENINGS
Mayor Obie said the balloting to determine interviewees was scheduled as the
last item on the agenda for the council's meeting later in the evening at 7:30
p.m.
Ms. Wooten suggested that the council postpone balloting for the Downtown
Commission opening and solicit more applications for a couple of weeks.
e Because only three applications have been submitted, Ms. Wooten said she would
like to have a broader variety of applicants from which to choose.
Mr. Bennett said that only three applications was somewhat of a low response,
and that he would not object to soliciting additional applications for a
couple of weeks.
Ms. Ehrman said she did not have a strong opinion on the matter.
Mr. Holmer said the three applicants seemed worthy of being interviewed. He
said he was not sure what policy could be used to justify postponing the
ba 11 ot i ng .
Mr. Miller, Ms. Bascom, and Mr. Rutan did not express strong opinions on this
matter.
Mayor Obie said one option would be to interview the three applicants; then,
if councilors feel a need to solicit additional applications, this could be
considered.
Ms. Bascom said the three Metro Partnership members have served only two one-
year terms; rather than interviewing applicants, the council should reappoint
these three members.
e MINUTES--Eugene City Council October 26, 1987 Page 1
Mr. Rutan said that if the council intends simply to reappoint the current
members, it should state this at the outset and not interview other
e applicants.
Ms. Wooten said she was disturbed by one of the applications of the three
current members. She said that if the council does decide to reappoint them,
she would at least like the council to have the opportunity to discuss with
the members how they view their role on the Metro Partnership. She said that
with the exception of Bob Fenstermacher, she was not sure about whether the
current members should be reappointed.
Ms. Ehrman asked staff to provide councilors with a more legible photocopy of
Sallie Edmunds' application to be a member of the Planning Commission.
II. DRAFT ECONOMIC DEVELOPMENT STRATEGIC PLAN
A. Review of the Process and Draft Plan
Mr. Rutan, Chair of the Council Committee on Economic Diversification (CCED),
said the development of this plan took a long time, perhaps too long. He said
the draft represented the input of CCED members (Councilors Rutan, Wooten, and
Holmer), City staff, the staffs of other public agencies, and seconda ry
research. He said the purpose of this meeting was for the council to review
the draft plan, ask questions, and make comments. Mr. Rutan emphasized that
the plan is still a draft, or an outline, and that additional input from the
council and the public is needed in order to make it truly a community
economic development plan.
e Ms. Wooten said CCED began its efforts by conducting a thorough and critical
review of the City's past and present economic development situation. The
committee generated a series of IIwhite papersll analyzing various programs,
projects, and ongoing strategies. Then, with the help of staff and many
others, the committee began to establish priorities and develop the draft
plan.
Ms. Wooten outlined the major points of the plan's IIGoals and Objectivesll
section. She said the goals and objectives were not too different from those
of past economic development efforts.
Mr. Holmer made a few comments about the plan's fi rst two chapters,
IIBackground on the Local Economyll and IIHi story of Economic Development
Planning and Assessment of Progress.1I He said the City has had a substantial
hi story over the last seven or eight years of involvement in economic
development planning. He said the results suggest that the City ought to
continue being active in this regard. He said the draft plan remains
consistent with the objectives the City has had in the past. He said the
economic indicators suggest that progress is being made in Eugene. Somewhat
taking issue with a comment made by Mr. Rutan, Mr. Holmer said he did not think
the development of the draft plan took too long, especially in light of the
time required to adopt past economic development plans. Mr. Holmer
specifically referred to three statements in Chapters 1 and 2. The second
e MINUTES--Eugene City Council October 26, 1987 Page 2
paragraph on page 3 stated that IIUp to World War II, agriculture was the main
industry in the region.1I He asked staff to verify the accuracy of this; he
e said he thought the timber industry was dominant in the region before World
War II. The third paragraph on page 7 stated that "additional high quality
office space has been recently constructed in the Country Club Road area and
at the Valley River Office Park.1I Mr. Holmer mentioned that this is in Ward 5.
The fifth paragraph on page 15 stated that IIUniversity enrollment for 1986 was
the hi ghest ever recorded. II Mr. Holmer asked staff to update thi s by
replacing 1986 with 1987.
Mr. Rutan said that when developing an economic development plan, the City
needs to have a clear understanding of past and present development efforts--
this i s the purpose of Chapters 1 and 2. He a 1 so said the background
information in the first two chapters will inform members of the public and
allow them to better participate in the discussion of the plan.
Ms. Wooten said that Chapter 3, "Buil di ng on Successful Strategies,1I
i dent ifi es the aspects of past economic development efforts that have
succeeded and recommends ways to continue and enhance this success in the
future. She briefly outlined the major points and strategies in the chapter.
Mr. Rutan said that Chapter 4, IIInto the Future--Eugene as a Regional Center,1I
identifies a short list of specific programs and projects to further economic
development of the community. He reviewed the major points and strategies in
thi s chapter.
B. Goals and Objectives
e Ms. Bascom referred to the plan's goal, which is to IIbroaden, improve, and
diversify the metropolitan economy while maintaining/enhancing the
environment.1I She said nothing in the plan seems to address specifically the
1 atter ha If of thi s goal.
Ms. Wooten said one of the plan1s assumptions, whi ch perhaps could be
underscored more directly, was that one of Eugene's strengths in terms of
marketing is its high quality of life. She added that the plan does refer to
the Entrance Beautification Study (Chapter 2, page 10) as one of things to
implement the latter half of the plan's goal.
Ms. Ehrman added that the Lane Regional Air Pollution Authority (LRAPA) could
be mentioned in chapter 3 as something that should be supported in the future
in order to preserve the environment.
Mr. Bennett said the council should take a narrow view of the goals and
objectives: efforts to maintain and enhance the environment through such
things as the Entrance Beautification Study and LRAPA should be viewed as ways
to achieve economic development, rather than as being part of the economic
development goals and objectives.
Mr. Bennett referred to the plan1s six objectives: 1) to reduce unemployment;
2) to increase quality job opportunities; 3) to increase per capita net
income; 4) to lower residential, commercial, and industrial vacancy rates; 5)
e MINUTES--Eugene City Council October 26, 1987 Page 3
to increase the city's regional retail market share, and to retain or increase
downtown Eugene's retail market share; and 6) to increase business starts and
e expansions. Mr. Bennett said the plan's objectives should be more specific--
more quantitative, more mea s urab 1 e . He said the objectives need to be
measurable in order for the City to be accountable for the funds it spends on
economic development.
Ms. Wooten said CCED considered stating the objectives in more quantifiable
terms. She mentioned two problems with doing this: 1) it can position the
City for failure due to economic factors beyond its control; and 2) it can
create expectations among members of the public that may not be realized.
Mr. Bennett said he was not advocating the establishment of unrealistic
objectives.
Mr. Holmer agreed that measurable standards are needed in the City's economic
development efforts; however, such standards would be more appropriate in some
sort of annual plan than as part of the objectives of the overall economic
development plan. Ms. Bascom agreed.
Mr. Miller agreed with Mr. Bennett's point that the plan's objectives need to
be measurable in some way. He said that goals are usually stated in more
general terms, whereas objectives are usually specific and measurable.
Mr. Rutan said there are many factors involved in economic development that
are beyond the City's control. He said that although the City can have an
important impact on economic development, in most cases it does not--and
should not--play the major role. He said that when setting objectives, the
e City must realize that it is only one part of the economic development
picture. Mr. Rutan added that although some economic development objectives
can be quantified and measured, the determination of whether a particular
effort was successful rests in part on subjective, speculative, or non-
quantifiable evaluations. He said the City should set specific objectives;
however, it should not delude itself: 1) about the impact it can have on
economic development; and 2) about how objective the evaluation of economic
development efforts can be.
Ms. Wooten added that the results of economic development efforts are often
not as measurable as people would like. She also said that the draft plan
discusses the need for accountability and recommends that several programs and
projects be evaluated to determine whether they are indeed providing benefit.
Referring to the fourth objective, Mr. Bennett said that the lowering of
residential vacancy rates carries with it the effect of increasing housing
costs.
Mayor Obie said the goals and objectives should address Eugene's positioning
relative to the national economy. He said one of Eugene's weaknesses is its
excessive dependence on swings in the national economy. He sa i d economi c
diversification is an effort to lessen the impact that such swings in the
national economy have on Eugene. He said this is not mentioned as
specifically as it might be in the "Goals and Objectives" section.
e MINUTES--Eugene City Council October 26, 1987 Page 4
C. Chapter 1: Background on the Local Economy
e Ms. Ehrman and Mr. Bennett said they appreciated the information presented in
Chapter 1.
Mayor Obie said he hoped that the plan in its final form will deal in more
specific terms with the wood products industry. He referred to a statement on
page 5 that "this sector has regained much of its pre-recession production
capacity but with approximately 40 percent fewer workers. II He sa i d this
figure seemed too high.
Mr. Rutan said CCED discussed several times what the plan should contain
regarding the wood products industry--specifically, whether the City should
be involved in lobbying to assist the industry in sustaining its current
allowable timber yeild. He said the committee felt that this was not an
appropriate role for the City.
Ms. Wooten added that a number of years ago, the council informally decided
not to involed the City in this type of lobbying.
Mr. Obie said that how the spotted owls and wilderness areas are treated will
have more impact on employment that any other single issue. He sa i d the
council will not be doing its job if it chooses to ignore this.
Referring to a statistic on page 5 of the plan, Ms. Ehrman mentioned that
Eugene has only about 25 percent of the county's wood products employment.
Mr. Rutan emphasized that the plan is meant to be a Eugene plan. He said
e Eugene is different in terms of economic development than Springfield or Lane
County.
D. Chapter 2: History of Economic Development Planning and
Assessment of Progress
Mr. Rutan said that in this chapter the committee tried to evaluate the City's
economic development efforts objectively and critically, but without being
overly negative.
Ms. Ehrman asked committee members to discuss some of their criticisms. Ms.
Wooten said that in the area of site and infrastructure development, some
decisions were made on assumptions that have not been realized. Mr. Rutan
mentioned that private demand has not followed the City1s sewer expansion at
the rate that was expected. He also mentioned that one issue with the
Business Assistance Team is, IIHow does one go about measuring its progress?1I
He said that what the Business Assistance Team does is not particularly
understood or known by the community. Mr. Rutan also mentioned that about 80
percent of future economic development will come from businesses or activities
that are already in the area.
e MINUTES--Eugene City Council October 26, 1987 Page 5
E. Chapter 3: Building on Successful Strategies
e Ms. Bascom referred to the first strategy listed in the "Site Planning"
section of Chapter 3: "Explore the potential for creating a wider variety of
high quality industrial sites through redesignation or reconfiguration of
existing industrial property." She asked whether CCED considered--or whether
this strategy was intended to address--the issue of increasing the amount of
industrial property in the city. Mayor Obie said this was an issue for the
committee to consider when it meets again.
Ms. Ehrman referred to the second strategy listed in the "Site Planning"
section of Chapter 3: "Prepare an airport vicinity refinement plan, including
analysis of the feasibility, practicality, and compatibility of commercial
and i ndustri a 1 development." She said there is a 1 ready di sagreement and
concern about whether expanding the Urban Renewal District will work against
the efforts to develop the downtown core intensely; she suggested that this
strategy will raise the same issue to an even greater extent.
Mr. Rutan said a refinement plan is needed to study and address just the type
of issue raised by Ms. Ehrman. He sa i d the City has a long way to go
(currently there is no road or sewer system in the airport area) to have
significant development around the airport like the type of development that
surrounds other metropolitan airports. He said this cannot occur in a vacuum;
that is why a refinement plan is needed.
Ms. Wooten said that she had reservations about the strategy also; however, if
one takes a long-term view, pressure for development in the airport area will
occur. Ms. Ehrman agreed, but said she was concerned that implementing the
e strategy at this time might be premature. Mr. Rutan said he did not think it
would be premature, because the refinement plan process is quite lengthy (five
to ten years from the beginning of the process until a refinement plan's
policies actually begin to be implemented).
Mayor Obie said the plan should address and the public should discuss whether
the City should be in the development business. He said the Metro Partnership
has been tryi ng to get significant developers interested in developing
property in the area and has been unable to do so. Ms. Wooten agreed that this
issue should be addressed directly in the plan and should be the subject of
public discussion. She added that the second strategy in Chapter 4 (page 20)
addressed thi smatter somewhat by recommending that the creation of a
nonprofit economic development corporation be explored.
Mr. Miller said he was not sure how the strategies in the "Special Events"
section of Chapter 3 and the plan1s goals and objectives are integrated. He
said the strategies address local events; however, he said he liked the idea
of promoting special events of national caliber. Mr. Holmer said this is
addressed in Chapter 4. Mr. Miller said an important issue is that the City
does not have unlimited funds; therefore, decisions have to be made regarding
whether promoting local events is the most cost-effective way to further
economic development.
e MINUTES--Eugene City Council October 26, 1987 Page 6
Ms. Wooten said the strategies in the "Special Events" section of Chapter 3
have the objective of creating events and opportunities for convention and
e tourist activity.
Ms. Bascom said local events promote the covention and tourism
many
industries.
Referring to the second strategy in the "Business Assistance/Job Retention"
section of Chapter 3 (page 17), Mayor Obie said the City should not continue
the Business Contact Program under its present basis. He said it did not make
sense to pay the Chamber of Commerce to do something it should be doing
anyway. He said that if the chamber does not want to do this, the City should
assume the responsibility by itself.
Mr. Bennett said the money being spent on the Business Contact Program is
needed for other things.
Mr. Bennett reiterated the point made by Mr. Miller that the draft plan
includes almost everything. He sa i d that because the City I S funds are
limited, priorities need to be set so that the plan focuses on the activities
with the greatest economic development potential.
Mr. Holmer agreed, adding, however, that the plan should be more comprehensive
at this stage in order to allow the public to comment on all of the possible
options; during and after public input, priorities can be established.
Mayor Obie said the Business Assistance Team seems to have varied somewhat
from its initial course of assisting and being an advocate for businesses in
e the permit processing area. Eugene Development Department Director Abe Farkas
said this was true. He said the Permit and Information Center (PIC) has grown
over the last few years and there are more staff members who can assist in the
permit processing area. Mayor Obie said that although he recognizes some of
the difficulties it creates within the City bureaucracy, this is the single
greatest value of the Business Assistance Team.
F. Chapter 4: Into the Future--Eugene as a Regional Center
Ms. Ehrman referred to the second strategy in Chapter 4, which called for
exploring the possibility of creating a nonprofit economi c development
corporation for the purpose of expanding the development assistance available
in the community. In response to a question from her, Mr. Farkas said the
Metro Partnership is a recruitment entity, not a development entity. He said
this strategy envisioned the creation of a true development corporation. He
sa i d that in severa 1 cities, such corporations have successfully acquired
land, constructed speculative buildings, managed them, and leased the space to
tenants.
Mr. Bennett said one often hears complaints about not being able to get
private developers to do the speculative building and risk taking to create an
environment for economic development. He said that if the private sector is
not doing this, the risks must be too high. He said that if the public sector
enters this business, it needs to be fully aware that it will be taking risks
that the private sector has not been willing to take.
e MINUTES--Eugene City Council October 26, 1987 Page 7
Ms. Bascom said that the wording of this strategy does not indicate clearly
enough that the nonprofit development corporation would be a City-sponsored
e organization.
Mr. Miller said that if the City is serious about implementing the economic
development plan, it will need to set priorities within the plan itself, or
divert funds from other areas in the City budget toward economic development.
Mr. Holmer said one thing he likes about the draft plan is that it would
require a review of the Capital Improvement Program wi th an economic
development focus.
Ms. Ehrman referred to the first strategy in the last section of Chapter 4:
"Establish a sports council to develop a long-range plan to market Eugene as
an international center for amateur athletics.1I She said she was not sure
whether a permanent sports council would be needed. She said the City pays
the Eugene-Springfield Convention and Vistors Bureau to do some of this
activity. Ms. Wooten said the bureau does not have the people needed to
market Eugene as an international center for amateur athletics. Mr. Rutan
said this strategy envisions a much more expanded and dynamic role in this
area that the one currently played by the bureau. He sa i d the strategy
envisions attracting some major events to Eugene.
In response to a question from Ms. Bascom, Ms. Wooten said the sports council
probably would be a nonprofit group with some type of agreement with the City.
Mayor Obie said that a certain amount of special events promotion can be done
with Eugene's existing facilities; beyond this point, however, to be truly
e successful in attracting special events, the City will have to commit funds to
capital projects. He said this is an area of tremendous potential. He
encouraged the plan to go farther in this area, both in terms of facilities
and how it will be financed.
Ms. Bascom said that the construction of a new library would be another
capital project that would promote Eugene as a regional center.
Mayor Obie suggested that CCED meet again to discuss the input from the
council, modify the draft plan as it deems appropriate, and then release the
plan to the public. Other councilors agreed with this suggestion.
Mayor Obie adjourned the work session at 7:22 p.m.
?;~~
Micheal Gleaso
City Manager
(Recorded by Monty Hindman)
e MINUTES--Eugene City Council October 26, 1987 Page 8
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TALL Y SHEET
EUGENE-SPRINGFEILD METROPOLITAN PARTNERSHIP
CHURCHILL, BRIAN
FENSTERMACHER, BOB 1m JI 7
HAMILTON, PATRICIA--1j ~
HOYT, THOMAS W1 J ~
KAHANEK, ANN-1 ,
NIELSEN, ROBERT , J
WAGENKNECHT, JEANNE__LA11 ~
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Assistant City Manager Date
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Board or Commission: Metropolitan Partnership
Number of Openings: 3 openings
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Co~ ilor Date
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TALLY SHEET
PLANNING COMMISSION
BENINGA, MAX / /
DAVIS, HOWARD /// J
EDMUNDS, SALLIE / /
EVANS, ALAN //// Y
GAYDOS, GERRY
ROEDER, CLARK // 2
STEPHENS, DEL M .s-
STRONG, CHARLES / /
TOLLENAAR, KEN /// ::J
WILTSHIRE, CORNELIA / /
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DOWNTOWN COMMISSION
CHAMBERS, MARCIA I~l S-
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