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HomeMy WebLinkAbout02/14/1983 Meeting . e e M I NUT E S Eugene City Council Dinner Meeting with Oregon Pacific Economic Development Corporation Treehouse Restaurant February 14, 1983 5 p.m. PRESENT: Mayor Gus Keller, Emily Schue, Betty Smith, Mark Lindberg, John Ball, Cynthia Wooten, Brian Obie, Dick Hansen, Freeman Holmer, City Councilors; Mike Gleason, City Manager; Barb Bellamy, Information Coordinator; Pat Lynch, Council Administrator; Cathy Briner, Business Assistance Team; Tom Hoyt, John Amundson, Eugene Area Chamber of Commerce; Jack Boettcher, Lloyd Millegan, John Ohm, John Alltucker, Tom Moreland, Tom Wildish, John Anderson, Dan Cudaback, Charlene Fauria, Michael Shadbolt, Oregon Pacific Economic Development Corporation. ABSENT: Stub Stewart, Les Anderson, Steve Romania, Bob Booth. I. WELCOME Mr. Keller said the public sector and the private sector have an obligation to work together and to work without duplication of effort. In three of the past four years, economic development has been Eugene City Council's number one goal. The City of Eugene is willing to assume the obligation with Springfield for developing jobs. The City Council recognizes the role the Oregon Pacific Economic Development Corporation (OPEDC) plays and wants to be part of that process. The City Council hopes to be of help to OPEDC and to dovetail activities. II. CITY/CHAMBER OF COMMERCE PRESENTATION A. Goals Mr. Gleason explained that a stronger employment base, diversification of the employment base, and a positive environment for job creation are the goals. B. Review of Six-Point Plan and Budget Mr. Gleason indicated the City of Eugene's program for two years has been a six-point plan focusing on: 1) industrial siting; 2) downtown development; 3) business assistance and employment training; 4) destination point activities; 5) capital improvements program; 6) private/public coordination. The capital improvement program investment is $7.5 million; employment is $2 million; performing arts/leisure services/ESCVB is $1.5 million; airport operation and development is $.5 million. The total is $14 million focused on economic development. MINUTES--Eugene City Council February 14, 1983 Page 1 \ , \ C. Partnerships Mr. Hoyt said the Joint Committee on Economic Oiversification (JCED) was formed one year ago, operates by handshake, and can dissolve within 30 days notice. The Chamber of Commerce has contributed $5,000 and the City has contributed $20,000. Through an evolutionary process, the single most important objective has become cooperation between the business sector and the City, and trying to enhance the credibility of the City. The coordination function is demonstrated by the Business Assistance Team, made up of representatives of the University of Oregon, Lane Community College, OPEDC, the Chamber of Commerce, the City of Springfield, and the City of Eugene. O. Summary of Results - Mr. Amundson referred to the Six-Point Program, saying the Business Assistance Team (BAT) is the action arm of the JCED. BAT is composed of City employees and other individuals who work together to achieve some of the Six-Point activities. Mr. Amundson said Cathy Briner and four City staff are complemented by 10 to 12 other people from the community representing the Chamber of Commerce, the University, LCC, and the City of Springfield. The hope is to include OPEOC. The membership is 10 to 15 and changes yearly, depending on the focus. BAT meets monthly. Mr. Amundson gave examples of progress. He said BAT works with groups and individuals who come for help. Since April, BAT has made 407 more contacts with businesses than were made by the City in 1981. Mr. Amundson indicated another program area of BAT is the Ambassador Program, a joint project with the Eugene Area Chamber of Commerce, which acts as an action group for economic development. The intent of the Ambassador Program is to identify those potential industrial development activities or businesses which might be appro- ~ priate for the City of Eugene or this area, and to encourage them to consider locating here. The Ambassador Program is expected to develop a sense of duty and participation by people in the community and is based upon criteria that anyone can become an ambassador to promote Eugene as a place to do business. The BAT will develop a program to assist people in this process. Mr. Amundson also noted the Eugene Industrial Development Corporation (EIDC) has been recreated. Another activity of BAT which has involved OPEDC is the develop- ment of a research corridor between Oregon State University and the University of Oregon. Mr. Amundson emphasized that development of a new image for Eugene is important. A brochure was developed and is being used as part of the Ambas- sador Program. Another brochure was printed on what a new developer needs. When the brochure is reprinted, it is hoped that it becomes a Eugene/Springfield, and possibly, a Lane ~ounty, brochure. III. OREGON PACIFIC ECONOMIC DEVELOPMENT CORPORATION PRESENTATION Mr. Wildish observed that February 14 is a very appropriate day to hold a joint work session of the private and public sectors. He emphasized it is important for OPEDC and the City to collaborate. Both programs should dovetail well. Mr. Wildish noted that OPEDC's final program has not been presented to the full board because the City's input is desired first. ~ MINUTES--Eugene City Council February 14, 1983 Page 2 \ \ . Mr. Anderson introduced three of the nine OPEOC staff. He said the corporation is open, which was a deliberate decision. Mr. Anderson indicated a new policy will not allow OPEOC members to participate in site-specific development. No special advantage will be awarded to board members. They will not have the names of prospective investors. Mr. Anderson explained the OPEOC goal is to promote diversification of the regional economy through sales and marketing efforts. OPEOC is essentially a sales and marketing organization. Mr. Anderson commented that the objectives include: 1) establishing a stable financial base; 2) establishing relationships with regional medi a; 3) establishing a link with the community; 4) exploring the feasibility of SBA 503 program; and 5) foreign trade. Mr. Anderson emphasized that the handouts distributed were simply a draft. He explained ,OPEDC is working closely with the ESCVB. Staff is now working on film promotion and has targeted 100 Hollywood producers. A manual will be developed for film people. OPEDC is very interested in foreign trade. One of the most important items of the whole program is a cost/profit comparison effort to combat the Alex Grant study. ~ IV. DISCUSSION Responding to a question on industrial recruitment techniques, Mr. Anderson replied that the program includes five days per quarter for full-time fieldwork in the western United States and two trips per year to Washington DC and New York. Two domestic trade shows are included. Another phase includes a foreign trade show and U. S. Conference of Mayors-sponsored show. He urged consideration of that since it is very cost-effective. Mr. Anderson added he is not comfortable with this area's level of foreign investment. Responding to a question, Mr. Anderson replied the geographical scope of OPEDC was not expanded for financial reasons. Once the budget and work plan are finished, discussion will take place with other cities. Mr. Anderson commented that all high technology investments will occur in the Eugene-Springfield metropolitan area and 1-5 corridor. This effort is coor- dinated with the Steering Committee of the Research Corridor, which has been asked to formally affiliate with OPEDC. OPEDC supports research, but prefers that the concept not be limited to research only. e Responding to a question on the West Eugene sewer trunk line, Mr. Gleason replied if the sewer trunk line were not completed, the State would enact a cease and desist order for a major portion of the line in the City. If individual portions are calculated inside the City, and part of it annexed, two thirds would be served by the trunk system. Without the sewer trunk line, the industrial siting program would collapse. MINUTES--Eugene City Council February 14, 1983 Page 3 Responding to another inquiry on other infrastructure improvements planned by the City, Mr. Gleason replied airport expansion is expected to begin in 15 .-. months. Also anticipated are 6th and 7th Avenue connections from the highway to the coast and Beltline extension to the Willow Creek basin. Mr. Moreland complimented the City for leadership involvement in the Central Industrial Area which has no neighborhood organization support. Responding to a question, Mr. Gleason said expansion of the airport is needed to address commercial lease/space problems, corporate hangar space, expanded food service for air carriers, and better passenger loading. Responding to a question about covered access to airplanes, Mr. Alltucker indicated business travelers want time reduced and will put up with a little inconvenient rain. Mr. Ohm suggested displaying an architectural drawing showing that airport expansion is anticipated. Responding to an inquiry, Mr. Anderson observed the Ambassador Program is a cost-effective way to collect information, but it does have liabilities in terms of administation. Inconsistent information may be a problem. He empha- sized there is no negative impact on OPEDC. Mr. Anderson applauded the strategy of attracting plants employing fewer than 100 people. He said it takes five years to attract a major company. Small entrepreneurs can make fast decisions and it is easier to accommodate them. Mr. Anderson commented there is no problem except that the City and OPEDC may intercept some of the same people at trade shows. However, he said that can be handled if there is a system of rational coordination. Competition is unavoidable between cities, states, and eventually sites. ~ Responding to a question, Mr. Gleason replied that downtown development is one part of the City's Six-Point Program, and marketing is an integral part. A cosmopolitan center is being planned which includes retail, as well as housing, transportation, and cabaret attractions. When asked how distribution of leads between OPEDC and the City would be resolved, Mr. Gleason said BAT could be the sorting mechanism to avoid duplication of efforts. Mr. Anderson added that sharing has to happen. He said the Lane County Living magazine promotion was a test and was not OPEDC's idea. ---- Mr. Anderson emphasized OPEDC does not plan to stimulate leads with the exception of the magazine ad, so that OPEDC programs will be separate from City programs. Mr. Wildish emphasized that OPEDC does not want to duplicate efforts, but wants to coordinate them. - Responding to an inquiry, Mr. Moreland emphasized the Eugene area land prices are extremely competitive. The big search for real estate from Silicon Valley firms will take place in 1984. No large sites are available there now. The Eugene area needs to be marketed creatively. Mr. Moreland stressed that this area should continue to invest in development so those who make relocation decisions are not shown pictures of rural land, but are shown a visualization of what the site can look like. Efforts must be continued to assure that utilities are on schedule to sites. e MINUTES--Eugene City Council February 14, 1983 Page 4 e. e e Responding to a question, Mr. Alltucker stated he would have liked the Emerald Canal to be completed in the 50'5. He said OPEOC does not want to take sides. The City does not need the canal since Eugene is not like San Antonio, where rivers and shade trees are scarce. Mr. Ohm said the canal would not lure businesses. However, he said access to markets is a factor in attracting business, and highways and transportation should be considered. Responding to another question, Mr. Anderson said it is expected that the Research Corridor Steering Committee will be affiliated with OPEDC. He said that foreign trade will be sought aggressively. Regarding tourism, Mr. Anderson explained that outlying communities are asking for help. They want help in financing facilities such as the McCready Hot Springs Resort.- They also want assistance with image improvement. Some of Eugene's advertising will affect their tourism. Responding to an inquiry on what the City's role should be on taxation, Mr. Anderson indicated OPEOC staff has gone over the Alex Grant study with a fine- tooth comb. He said reality is what people think it is. He said Oregon must find its own Alex Grant. The weight of taxation varies by industry and some industries are not sensitive to taxes. Mr. Alltucker observed that personal income tax may be more important than corporate tax. Oregon needs to reduce personal income tax to lure executives. Oregon is not competitive in that area. V. CONCLUSIONS Mr. Obie emphasized that economic development is the number one goal of the City Council. The City Council Subcommittee on Economic Oiversification is dealing with it every two weeks and is looking for answers. OPEDC is one answer. The City is not in the business of recruiting firms with over 100 employees, but is looking to OPEOC to do that. If OPEOC is not, he asked them to let the City know. He said answers are needed on coordination. He commented that Mr. Gleason and his staff have demonstrated willingness to coordinate. City Council feels a responsibility to take a leadership role for this community. A job must be done, and it will require OPEOC and the City Council together. Mr. Moreland recalled an example of a father who committed suicide after losing his job. Mr. Moreland emphasized that those with ability and talent have a moral responsibility to help others with sensitivity and class. Mr. Alltucker pointed out six ~nresolved issues: 1) coordinated outreach; 2) the best economic diversification for this area; 3) incentives; 4) whether 8,000 or 18,000 jobs are enough; 5) land use planning or some alternative; and 6) taxes. He said the City Council and OPEOC need to reconvene as soon as possible. Ms. Wooten stated that the City has a legitimate ongoing role in economic diversification. She said ongoing assistance to local businesses has not been mentioned. She said the program will be adjusted to the needs. The City is promoting job creation and maintenance for the long haul. The meeting was adjourned. (Recorded by Lois Enman) LE: jw/CM7b23 ~~ MINUTES--Eugene City Council February 14, 1983 Page 5