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HomeMy WebLinkAboutCC Minutes - 06/27/05 Mtg MINUTES Eugene City Council Regular Session Council Chamber--City Hall June 27, 2005 7:30 p.m. COUNCILORS PRESENT: George Poling, Jennifer Solomon, Bonny Bettman, David Kelly, Gary Papd, Chris Pryor, Betty Taylor. COUNCILORS ABSENT: Andrea Ortiz. Her Honor Mayor Kitty Piercy convened the meeting of the City Council. 1. PUBLIC FORUM Mayor Piercy welcomed everyone to the City Council meeting and reviewed the rules of the Public Forum. Councilor Poling, seconded by Councilor Solomon, moved to extend the time for the Public Forum by 10 minutes, given that 12 people signed up to speak. Roll call vote; the motion passed unanimously, 7:0. Mark Rabinowitz, PO Box 51222, observed that oil now cost $60 per barrel. He noted that several political leaders now admitted that oil was at peak production. He thought this presented several practical issues for the Mayor's Sustainable Business Initiative (SBI) Task Force, and suggested these include a moratorium on the construction of new highways and a diversion of the capital spending that would have gone into the power plant proposed for Coburg, so that it would be spent on wind turbines and solar panel production. He could not believe that building codes did not already require the inclusion of solar power generation. He commented that the "Wal-marts of Mass Destruction" were destroying local economies everywhere. He said numerous communities already banned big box stores. He opined that West 1 lth Avenue, as one entered the city of Eugene, was ugly and a disaster and this type of development should be stopped. He suggested that money potentially spent on a new parking garage should be channeled to provide free bus service on the Bus Rapid Transit (BRT) or spent on a Pike Place-type farmer's market that would support the local foods business. Additionally, Mr. Rabinowitz was ~astounded" that it was still legal to sell fireworks. He said two years earlier the south hills ~nearly burned down" because young people were playing with fireworks. In conclusion, Mr. Rabinowitz wished the council would pass an ordinance that prohibited stores from selling pesticides. Megan Mosely, 313 East 8th Avenue, stated that she owned property across from the potential location of the Whole Foods Grocery. She supported the store because, according to research, the Whole Foods MINUTES--Eugene City Council June 27, 2005 Page 1 Regular Session grocery store had been in the top 100 employers since 1998, and most years it was in the top 50. She said the store fostered community participation by giving five percent of its profits to local charities and by paying employees to volunteer. She related that the store had salary caps with maximum margins between its lowest and highest paid employees. Additionally, she pointed out that Whole Foods supported sustainability by buying local produce and by recycling and reusing materials and reducing waste. She quoted a favorable letter to the editor of The Register-Guard from a former Eugene resident who was employed by the store, noting in particular that the store offered domestic partner benefits. She averred that a downtown was most vital when it included national retailers. For her, downtown revitalization meant people living downtown and, for that reason, a full service grocery store was a primary need. She related that an opinion piece in the Eugene Weekly was errant in its assertion that Symantec had left downtown after its tax exemption was exhausted. She understood that there never had been a tax exemption and Symantec was still paying the City for parking. She also disagreed that the Downtown Athletic Club (DAC) was built with block grants that ultimately decreased money for low-income housing. She asserted that the loans were paid back with interest. She felt the DAC remodel spurred surrounding development that made for full tenancy in that area. Bob Foster, 369 West D Street, # 11, Springfield, expressed concern about Whole Foods moving to Eugene and hoped it would not drive out the smaller stores. He had not heard that Whole Foods bought local produce, but if this was so it alleviated some of his concerns. He asked for a dialogue between the City Council and the smaller stores before a large store was invited into the neighborhood to ensure that the larger store would not undercut the small ones and put them out of business. Moshe Immerman, 1290 McLean Boulevard, opined that Whole Foods was far from an optimal choice for a store because it would be investor-driven. He asserted that the average morsel of food in the United States traveled more than 1,400 miles to its eventual destination. He alleged that the Wild Oats Natural Food chain was highly suppressive of free speech among its customers. He claimed that he was a healing arts practitioner and was not allowed to speak to clients about the health benefits of the formulas bought at that store. He supported forming a food cooperative. He provided the Mayor and council with copies of a newsletter from a food co-op in Sacramento that he shopped at while visiting. He pointed out that the co-op in Sacramento focused on purchasing local produce. Mr. Immerman requested that the council direct the City Attorney to render a legal opinion on whether the City could partner with a retailer such as Whole Foods. He did not think it was legal or ethical. He also wanted the City Council to put out a Request for Proposal (RFP) from all non-profits and private and corporate sources for what kind of option to put in that location and he wished this to be followed with a public hearing, to be held in the Convention Center. He alleged that he had an initial commitment for a $10,000 grant from a "national organization" for a feasibility study for a food cooperative and that he had also secured an initial commitment for a $50,000 grant for a market and marketing study. Paul Nicholson, 1855 East 28th Avenue, commented that it was difficult to know what was going on regarding the possibility of Whole Foods locating in Eugene. He asserted that some projects in the city of Eugene quickly moved "directly from rumor to a signed memorandum of understanding." In response to Ms. Mosely's testimony, he said he stood by the statement he made in the Eugene Weekly that the DAC received a large "way-below-market rate loan" backed by Community Development Block Grant funds. He thought the issue boiled down to whether the City was conducting its planning ad hoc or in a "real way." He pointed out that some of the elected officials expressed support for small businesses in their campaigns. He noted he had nothing against Whole Foods per se but he averred the "twin millstones that grind up small MINUTES--Eugene City Council June 27, 2005 Page 2 Regular Session business" were the long-term policy of arbitrary changes in consolidation of land and zoning and the preference given to larger structures such as Whole Foods. He commented that he could not find a place for his business along the river because everyone who held land that was zoned C-1 Commercial was convinced that they could change to a C-3 zoning and increase the value of their properties. Gavin McComas, 1350 East 25th Avenue, owner of Sundance Natural Foods Store, recognized that the proposal was part of a complex set of factors being considered. He supported the Shedd Institute and downtown viability. He agreed that as far as ;;mega-corporations" go, Whole Foods was noted for being a very progressive and sophisticated corporation. He said, however, that the Whole Foods corporation had a strategy of moving into an area with smaller natural foods markets because this ensured it a customer base. In that sense, he asserted that Whole Foods was ;;predatory." He remarked that no matter ;;how green they seem" this was its strategy for advancement. As for buying local produce, he said Whole Foods did indicate a preference for doing so; but, as it expanded, the store had to institute centralized buying which meant more produce from far away places. He remarked that independent natural food stores were traditionally homey places that brought charm to the community. He averred that replacing such stores with ;;big box corporate chains," no matter how green they appeared, threatened to ;;eviscerate" the charm and uniqueness inherent in the smaller stores. He called it short-sighted to think that ;;these corporate interlopers" enhanced the towns they ;;invaded." He predicted that residents would lose that sense of belonging and connectedness that smaller stores provide and Eugene would become a less attractive place to visit or set up a business. He was skeptical that a big box store could transform downtown and strongly opposed the utilization of any public money to support larger retailers. Don Bishoff, 2688 Onyx Street, urged the council to reject spending any money toward a store that had allegedly participated in union busting. He said the founder and Chief Executive Officer (CEO) of Whole Foods once called unions ~parasites" and compared employing union workers to having herpes. He reported that a movement to unionize workers at the Whole Foods store in Madison, Wisconsin was defeated by management over the course of two years and that management allegedly violated laws governing labor negotiations by stalling negotiations and firing union leaders. He noted the talk on the part of elected officials about the need for community standards for businesses that operate in Eugene, especially those that want City help. He submitted to the council that there was no place for City cooperation with any corporation whose CEO compared unions to a sexually transmitted disease. He underscored that the community had undergone three years of ~ugliness" because of the union-busting attempts of an existing local company with which he had acquaintance and urged the council to tell Whole Foods to go elsewhere. Shawn Boles, 105 North Adams Street, expressed appreciation for the institution of the SBI and suggested that it not be treated as window dressing. He agreed with concerns expressed regarding the possible location of the Whole Foods store and the increasing costs of oil and the lack of access to it. He called these the facts the City had to live with that bore directly on the concept of sustainability. He urged councilors to look at the issues before them with respect to the downtown area and analyze ideas to determine if they were sustainable or not. He said to the council, in closing, that if it did not ~know how to fix it, don't break it, and if you don't know how to replace it, don't use it up." Robert Bolman, 882 Almaden Street, said he was not wild about the idea of having an out-of-town corporation run the Kiva out of business. However, he was present chiefly to speak about density in the Chambers area node. He was concerned that neighbors were trying to decrease the maximum number of dwellings that could be built on a lot. He sympathized with their intent to maintain the character of the neighborhood but only on the assumption that some %erious nodal development" would occur along the MINUTES--Eugene City Council June 27, 2005 Page 3 Regular Session main intersection of 11th Avenue and Chambers Street. He agreed that oil production was peaking. He noted two articles in the local paper that were related to declines in oil production, one on the increase in airline fuel costs which caused hikes in fares and the other that discussed faltering earnings at FedEx due to fuel costs. He quoted from a letter he had received from Waker Youngquist, geologist, in response to an opinion piece he had written for The Register Guc~rd. Mr. Youngquist, who studied and lectured on alternative energy sources for more than 40 years, said there ~is no comprehensive substitute for oil" and he predicted the coming transition to a renewable energy resource economy would be traumatic. In particular, Mr. Bolman wished to register his opposition to the transformation of prime farmland into %ookie cutter tract house sprawl." He predicted that in 10 to 15 years, the area would not have tractor- trailer rigs bringing food from many miles away due to fuel costs. He thought it likely that Interstate 5 would fall into disrepair. He urged the council to familiarize itself with the concept of peak oil production. Zachary Vishanoff, Patterson Street, asked if the Eugene Police Department (EPD) was acquiring tazers. Regarding the SBI, Mr. Vishanoff asked that there be a public input opportunity at meetings. Mr. Vishanoff asserted that there was collusion between the Nike company and the military on weapons projects at the University of Oregon. He alleged there was an overlap between Nike's research goals and the Department of Defense. He provided a list of articles for the council to conduct a Google search on in order for the council to understand how the ~weapons projects and sportswear projects meet." He said the reason he read the list was that the campus planning committee was going to receive a copy of the proposal from the Oregon Nanoscience and Microtechnologies Institute and he was worried that approval of the proposal would happen while University students were gone for the summer. He averred that he raised the issue of the ~militarization of the University" with Councilor Kelly and he reiterated his hope that the council would not let the university %neak this through" over the summer. In conclusion, Mr. Vishanoff felt more discussion was needed on alleged toxic waste dumps located at the Eugene Water & Electric Board site. Carol McBrian, 1875 West 15th Avenue, said she had been a Eugene resident since 1982 and had always bought as much food as she could at alternative food stores. She did not want to see any developments that could threaten those establishments. She observed that five small bookstores had gone out of business since Borders had opened. She averred that competition usually meant many businesses were competing, but since the arrival of Borders Bookstore there was less competition. She did not want to see this happen with the food economy in Eugene. She compared bringing Whole Foods to Eugene to bringing in a major league team to play against the Eugene Emeralds and providing the major league team with the best equipment. She urged the council to ~help the home team." She shared her love of Eugene and asked the council to keep in mind the uniqueness for which the city of Eugene was known. Jan Spencer, 212 Benjamin Street, registered his appreciation for the vote against the Santa Clara land swap. He also supported the recent vote on the Goal 5 inventory which recognized the need for the study on pileated woodpeckers. Mr. Spencer asked that the SBI Task Force be publicly accessible. He added that he thought there were good people among the membership of the task force. MINUTES--Eugene City Council June 27, 2005 Page 4 Regular Session Continuing, Mr. Spencer supported making the River Road area a target for an "urban village nodal-type zone." He felt the River Road area needed a neighborhood place. Regarding oil production, Mr. Spencer noted the recent interest on the part of a Chinese company to purchase Unocal Oil Company. He averred this was symptomatic of the "global energy scene." He quoted a letter written by two Republican representatives from California to the President that emphasized the critical importance of controlling energy resources. He remarked that the representatives were behind the curve. He observed that if one looked at United States military deployments all over the world, it would look like "bees coming to honey," as the deployments largely focused on areas of oil production. Mr. Spencer opined that everyone agreed more densification was needed in the downtown area. He felt anything developed downtown should be multi-story and there should be detailed traffic impact studies with the understanding that energy would cost more in the not-too-distant future. Ken Silverman, 2744 Harris Street, remarked that building a one-story grocery in the downtown area would not fulfill density goals. He thought it would be unfair to take public money and use it to foster private business. He recalled that in kindergarten he learned that if one brought gum to school, one had to bring enough for the whole class. Given that, he averred he should be supplied with a covered bicycle garage in front of his small business if a parking structure would be built for the Whole Foods Grocery. He said there was never enough parking in front of the Sundance Natural Foods and asked why it should not be provided with a parking structure. He asked that public money be used for public good. He commented that the City frequently demolished and rebuilt in the downtown area and every time it did so people made money from it. He asserted that this was the only city he had ever lived in that did not preserve most of the downtown buildings. He said the cities of Baker and Cottage Grove had "cute little downtowns" but downtown Eugene looked like a bulldozer had been over it. Mayor Piercy closed the Public Forum and called for questions and comments from the council. Councilor Kelly thanked everyone for their testimony. He commented that whether Whole Foods would improve, make worse, or have little effect on the local stores was a worthwhile discussion. He noted that someone mentioned city planning and he wished to point out that locating a full-service supermarket in downtown had been a key element of planning for years. He indicated that Whole Foods had been the first to step forward to provide a full-service grocery store in the downtown area. He said in an ideal world the public could dictate what kind of store it wanted in the downtown area, but the reality was such that unless someone from the private sector wished to build one, it would not happen. He stated that he would oppose any financial incentives. He underscored that there were proposals, but they were verbal, and it was his understanding that if Whole Foods wanted parking in a parking structure, it would pay for it just like anyone would. Additionally, he wished to point out that Whole Foods could build "tomorrow" on any land zoned C- 2 or C-3 Commercial by filing a building permit. He averred that dissuading them from the downtown location would not mean that the store would not locate in the city of Eugene. He noted that Whole Foods had been cited for being anti-union and commented that Sundance Natural Foods, Kiva, and the other locally-owned natural foods stores were not union stores. He pointed out that Safeway and the Fred Meyer stores were union employers. Regarding land swap proposals, Councilor Kelly stressed that such proposals almost always came from landowners, which made it difficult to plan "up front" for them. MINUTES--Eugene City Council June 27, 2005 Page 5 Regular Session Councilor Bettman thanked everyone for their thoughtful testimony. She echoed Councilor Kelly's comments and suggested to the City Manager that a press release concerning Whole Foods be released. She thought many people did not understand the disposition of the Whole Foods issue. She felt providing a Pike Place-type structure for the Farmers Market was an excellent idea. She suggested that when looking at the next round of infrastructure improvements for the park blocks, this idea should be investigated. Councilor Taylor called it a "delight" to hear the people of Eugene speak. She said that while it was true that with current laws Whole Foods could not be stopped from coming to Eugene, nothing should be done to help such an entity move into the city. She believed there were enough good food businesses in Eugene already. She also supported building a Pike Place-type market for the Farmers Market. Mayor Piercy appreciated the comments on the SBI. She invited everyone to participate in the conversation as fully as they wished. Councilor Kelly announced that the first meeting of the SBI task force would be held at 1:30 p.m. on June 28 in the McNutt Room. 2. CONSENT CALENDAR A. Approval of City Council Minutes - May 23, 2005, City Council Meeting - May 25, 2005, Work Session B. Approval of Tentative Working Agenda C. Ratification of Intergovernmental Relations Committee Actions of June 7, 2005 D. Adoption of Resolution 4844 Authorizing the Issuance and Sale of Water Utility System Revenue Bonds in the Aggregate Principal Amount of Not to Exceed Twenty- Two Million Five Hundred Thousand Dollars ($22,500,000) for the Purpose of Advance Refunding or Defeasance of Certain Outstanding Water Utility System Revenue Bonds; and Providing for Certain Details and Related Matters E. Approval of City Council Vision and Goals Statement F. Appointment to Lane Workforce Partnership Board Councilor Poling, seconded by Councilor Solomon, moved approval of the Consent Calendar. Councilor Kelly stated that he had previously submitted one correction to the minutes electronically. Mayor Piercy noted the correction. Roll call vote; the motion to approve the Consent Calendar passed unanimously, 7:0. MINUTES--Eugene City Council June 27, 2005 Page 6 Regular Session 3. ACTION: Adoption of Resolution 4845 Establishing Interim Local Criteria Applicable in the Proposed West Eugene Enterprise Zone and Adopting a Public Benefit Scoring System City Manager Taylor stated that Denny Braud from the Community Development Division of the Planning and Development Department would speak on the interim recommendations for community standards in the event that an Enterprise Zone should be designated in the City of Eugene. Mr. Braud recalled that the City Council provided direction in April to submit an application to the State of Oregon for designation of a new Enterprise Zone (EZ). He said the City had yet to receive notification but staff was optimistic that it would be so designated. He stated that the council directed staff to bring back an interim policy regarding additional local criteria and it had been anticipated that this would transpire after the City heard word from the State. Given that the council intended to have this policy in place before July 1, it had been decided to proceed with proposal of interim standards with the caveat that it was as yet unknown whether the zone would be designated. He related that the council directed staff to bring back the 1997 public benefit criteria as an interim policy which has been adjusted to reflect that 25 percent of the exemption would be subject to it, formerly 15 percent. Mr. Braud stated that the council also supported the establishment of a cap on the amount of the tax exemption per new job created and the expectation was that the cap would be adopted prior to July 1. He noted that Councilor Bettman previously proposed a $30,000 cap. He said at this point it was important to recognize that the County was a joint sponsor in this effort and needed to pass a mirror image resolution adopting the local criteria and supporting the cap of $30,000. He related that the Lane Board of County Commissioners had taken action in April to support that approach but had not discussed a specific dollar amount for that cap. He stated that the County staff recommended support, but it was not yet known whether the commissioners would support the $30,000 amount. Mr. Braud said if designated by the State, the zone would be in effect on July 1, but should the City and the County not agree on the criteria, the zone would be in place without clear direction for the criteria applicable to it. He conveyed staff's recommendation for approval. He anticipated bringing back a recommendation for a public involvement process that would move into the adoption of permanent job quality standards for the program. He expected that the public process would involve some community members in a committee of some sort that would make a recommendation to the City Council as soon as possible regarding permanent standards. Councilor Poling asked if the cap per employee was considered interim. Mr. Braud replied that nothing was permanent because at any time, the City and County acting jointly could change any part of the cap. Councilor Taylor asked what the average county wage was. Mr. Braud replied that it was approximately $29,000 per year. Councilor Taylor averred that giving points for provision of the average county wage or even 115 percent of the average county wage was still not enough to live on in the city of Eugene. She asked why the City would be giving points for such a wage. In response to another question from Councilor Taylor, Mr. Braud said it took 80 points to get the full tax exemption. Councilor Taylor opined that it was an easy number to get to. She observed that one barrier was low- and moderate-income and commented that she could not imagine anyone asking for a job that "only pays $30,000" per year unless they already had a low or moderate income. MINUTES--Eugene City Council June 27, 2005 Page 7 Regular Session Mr. Braud explained that the jobs typically created in the program were entry-level production jobs and for such a job, $30,000 to $33,000 annually was an excellent wage. Councilor Taylor responded that the City had ;;plenty of entry-level jobs already" and did not need to subsidize jobs to increase the number. Councilor Bettman surmised that the council could "sit down with the County and establish criteria." She wondered if there would be no criteria, should the County not agree with the City when it voted on June 29. Mr. Braud affirmed this to be so. Councilor Bettman said the council had given the City Manager direction on this item three months earlier and now, three days before the zone would be approved or denied by the State, there was still uncertainty regarding the criteria. She declared that the council had agreed to an Enterprise Zone but only if standards were in place. She thought there would be no standards in place should the County not be in agreement with the City. She averred that staff had three months to make sure the standards had been placed in front of the City and the County in ~a timely way" so the council policy could be fulfilled. She remarked that she did not have a problem with the County, but rather had a problem with the follow-up from City staff %n very explicit direction on a very controversial issue." Councilor Bettman asked if the application for the Enterprise Zone could be withdrawn at this point. Mr. Braud replied that the City would have the opportunity to request withdrawal of its application before July 1. After July 1, he explained, it would have to be undertaken in the context of a zone termination. Councilor Bettman ascertained from Mr. Braud that the County Commissioners would take action at approximately 10:30 a.m. on June 29. She asked Mayor Piercy if she would be amenable to providing 15 minutes on the schedule during the council work session scheduled for Wednesday, June 29, to get an update from staff on the County's disposition of the Enterprise Zone so that the council could take the opportunity to withdraw the application if it deemed it necessary. She thought an application from a manufacturer could be processed without any community standards should the Board of Commissioners disagree with the City's standards and this would be inconsistent with council direction. Mayor Piercy said it was a possibility. She hoped that the Board of County Commissioners would recognize that the City Council had worked hard to reach this agreement. City Manager Taylor related that he had great expectations because throughout the process, City staff and County staff had been communicating about the conditioned application, the conditioned zone, and the process for interim standards while the City engaged in a more rigorous exploration of what the standards should be. He anticipated that the commissioners would adopt the interim standards in the same spirit that the City had pursued them and the two would move forward with the public process for making a recommendation to the two government bodies. He noted that when the first application had been submitted, it had seemed like a long shot, but now it seemed very likely that the City would be granted the Enterprise Zone. Councilor Kelly observed that the council had worked well together to come to a level of near consensus on the Enterprise Zone. He felt optimistic that this sense of cooperation would pervade at the Board of County Commissioners. He agreed, however, that 15 minutes should be set aside at the coming work session. MINUTES--Eugene City Council June 27, 2005 Page 8 Regular Session Councilor Taylor opined that the standards were "meaningless." She reiterated her opposition to the zone. She remarked that most of the councilors wanted more rigid standards but she had noted that redevelopment of a brownfield would net the developer only two points. Councilor Bettman did not agree with every provision in the interim standards but was prepared to support them because they were short-term She was glad that the number of points for brownfield redevelopment was low because anyone who applied for the Enterprise Zone exemption would get them due to the area it covered. Regarding the cap, Councilor Bettman said the $30,000 cap was not the cap on how much in wages the pay would be, but rather how much in benefits would be provided per job in terms of a tax break. Councilor Bettman asked how much of the percentage of the benefit was being provided by Lane County as opposed to the City of Eugene. Mr. Braud replied that the tax rate for the City was approximately $7 per $1,000 of real value and the tax rate for the County was approximately $2 per $1,000. Councilor Bettman observed that even though the amount for the County was "substantially less" the County had veto power over the standards. She did not believe this to be fair. Councilor Poling, seconded by Councilor Solomon, moved to adopt Resolution 4845 establishing interim local criteria applicable in the proposed West Eugene Enterprise Zone and adopting a public benefit scoring system. Councilor Pryor called it a worthwhile discussion because the Enterprise Zone was important. He was hopeful that the City would not have problems working with the County. He thought the zone would be the subject of an ongoing discussion and he wanted to keep the momentum going forward. Councilor Pap6 asked if any other communities had adopted standards of this sort and if they had been successful reaching the goals set forth by the standards. Mr. Braud replied that the City of Portland was the only other municipality that had adopted standards as part of its Northeast Portland Enterprise Zone. He said there was a policy in place since the mid-1990s and the criteria had changed with time. Councilor Pap6 ascertained that the City of Eugene could do the same. Councilor Pap6 asked if a change in criteria would affect an application that had been concurrently submitted. Mr. Braud responded that the application would be subject to whatever criteria were in place. Roll call vote; the motion passed, 6:1; Councilor Taylor voting in opposition. The meeting adjourned at 8:39 p.m. Respectfully submitted, Dennis M. Taylor City Manager (Recorded by Ruth Atcherson) MINUTES--Eugene City Council June 27, 2005 Page 9 Regular Session