HomeMy WebLinkAboutResolution No. 4845
iRESOLUTION NO. 4845
A RESOLUTION ESTABLISHING INTERIM LOCAL CRITERIA
APPLICABLE IN THE PROPOSED WEST EUGENE ENTERPRISE
ZONE AND ADOPTING A PUBLIC BENEFIT SCORING SYSTEM.
The City Council of the City of Eugene finds that:
A. On April 20, 2005 the City Council adopted Resolution No. 4832 authorizing the
City Manager to make application to the State of Oregon for designation of a West Eugene
Enterprise Zone.
B. At the time Resolution 4832 was approved the Council directed the City Manager
to bring back to the Council, prior to July 1, 2005, a resolution adopting interim local criteria
consistent with the Public Benefit Criteria adopted in 1997. It was the understanding that new
job quality standards would be adopted as soon as practical following notification of a successful
designation application, with the intent that 25 percent of the tax exemption benefit for qualified
enterprise zone investments would be subject to the job quality standards.
C. Notification has not been received frorn the State of Oregon regarding the
selection of zone designations for this year's application round. The selection is expected to
occur prior to July 1, with the zone becoming active as of July 1, 2005.
D. The Interim Local Public Benefit Criteria set forth herein consists of the 1997
Public Benefit Criteria, with the public benefit contribution of 15 percent modified to 25 percent,
as directed by the Council. The Council also requested that a cap be placed on the tax
exemption, and staff has recommended a cap of $30,000 per new full-time job created.
E. The Public Benefit Criteria attached as Exhibit A hereto reflects the scoring
system adopted by Resolution No. 4548 on December 1, 1997 with the formula for calculating
the public benefit contribution adjusted to reflect the Council's desire to condition 25 percent
(formerly 15 percent) of the tax exemption on the public benefit criteria.
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 on the above findings, which are hereby adopted, the City Council
hereby establishes the folio-wing Interim Local Criteria for the proposed West Eugene Enterprise
Zone:
(a) Qualifying companies shall be required to make a public benefit
contribution based on the following criteria:
Resolution- 1
1. The extent to which the company hires from local training/referral
agencies;
2, The extent to which the company hires persons with barriers to
employment;
3. The extent to which the average compensation of new jobs is equal
to or greater than the average county wage;
4. The extent to which the company dedicates funds for non-
mandated training and benefits;
Whether the company is utilizing a previously developed site~
including expansion of an existing site, or redevelopment of an industrial or
brownfield site;
The extent to which the assessed value of new investment exceeds
$500~000 per acre;
Whether the company is a small and/or local business or small
and/or local start-up company.
(b) Except as provided in subsection (c), in no event shall the amount of the
contribution exceed 25% of the tax exemption.
(c) Notwithstanding the provisions of subsections (a) and (b), the three-year
tax exemption benefit shall be limited to a maximum of $30,000 per new full-time job
created.
Seetion 2, The City Council adopts the Public Benefit Criteria Scoring System contained
in Exhibit A attached hereto and incorporated herein, to implement the Interim Local Criteria set
forth in Section 1 of this Resolution, for determining exemptions for future investments made by
companies participating in the proposed West Eugene Enterprise Zone.
Section 3, This Resolution shall become effective immediately upon adoption by the
Council and adoption of a substantially similar resolution by the Lane County Board of County
Commissioners.
The foregoing Resolution adopted the 27th day of June, 2005,
City Recorder
Resolution - 2
Exhibit A
PUBLIC BENEFIT C TERIA (2005)
The average wage for all new jobs is:
_> 100% and _< 110% of average county wage
> 11{)% and <_ 115% of average county wage
> 115% of average county wage
Points
25
35
40
>10% - _< 35% of all new jobs
> 35% - _< 50% of all new jobs
> 50% of all new jobs
Points
5
15
25
_> 5% - -< 10% of all new jobs
> 10% - _< 20% of all new jobs
> 20% of all new jobs
Points
5
10
15
>_ 1% - <. 5% of entire company payroll is dedicated
to non-mandated training & benefits
> 5% - _< 10% of entire company payroll is dedicated
to non-mandated training & benefits
> 10% of entke company payroll is dedicated to
non-mandated training & benefits
Points
5
10
15
Resolution 4845 Exhibit A - Page 1
~< 50 employees at time of precertification
Points
10
Expansion at existing site
Redevelop preexisting industrial site
or brownfield site
Points
1
2
Investment > $500~000 per acre
Points
C~TERIA NOTES:
Examples of qualified local training or referral agencies:
Lane Workforce Partnership
Oregon Emplo2~ent Department
Lane Corr~munity College
Adult/Family Services
Vocational Rehabilitation
Private Rehabilitation Agencies
Goodwill Industries
Catholic Community Services
St. Vincent de Paul
Salvation Army
Resolution 4845 Exhibit A - Page 2
Examples of persons with employment barriers:
Low/moderate income
Disabled
Injured
Veteran
Welfare recipient
Displaced worker
Teens/youth
Ex-felon
Older workers
Shomterm jobs history'
Displaced homemaker
Drug/alcohol abuse history
Protected classes (Fem~e head of household, Hispanic, Black, Asian or
Pacific Istander, A~merican had/an or Alaskan Native)
Qualifying non.government mandated benefits include: health/life/disability
insurance~ retirements profit~sharing~ paid vacation/holiday, child care,
transportations sick leave, tuition assistance~ career development/training.
POints
Earned
PUblic Benefit
ContribUtion %
80+
0% contribution
0.79
Contribution due = a
to
Exam~: If point total is 4~0
Examp~le: If point total is 1~0
Resq!ution 4845 Exhibit A - Page 3
DIST~BUT1ON OF PUBLIC BENEFIT CONT~BUTION
Public benetit contribution will be paid annually, distributed as follows:
- 40% to Lane County;
- 4(}% to City of Eugene;
- 20% to programs sponsored by educational institutions, including Section
501(c)(3) tax exempt education foundations.
In any year in which there is at least $1O,0OO in this category' to distribute,
the Enterprise Zone Manager (or Co-Managers) jointly appointed by the
Eugene City Council and County Board of Commissioners shall conduct a
competitive Request for Proposal process to allocate the available funds.
Administrative costs of the distribution process may be taken from the funds
available.
Resolution 4845 Exhibit A - Page 4