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HomeMy WebLinkAboutItem 3: Res/W.Eug.Enterpr.ZoneEUGENE CITY COUNCIL AGENDA ITEM SUMMARY Action: Resolution 4851 Establishing Interim Local Criteria Applicable In the West Eugene Enterprise Zone and Adopting a Public Benefit Scoring System; and Repealing Resolution 4845 Meeting Date: August 8, 2005 Agenda Item Number: 3 Department: Planning and Development Staff Contact: Denny Braud www. eugene-or, gov Contact Telephone Number: 682-5536 ISSUE STATEMENT The council is being asked to consider a resolution establishing interim local criteria that would apply to tax exemptions granted in the West Eugene Enterprise Zone. The proposed resolution contains the same criteria as the Board Order passed by the County Commission on August 2, 2005. The County's action was based on a compromise solution presented to the board by Mayor Piercy. BACKGROUND On June 27, 2005, the council approved Resolution No. 4845, which supported the establishment of interim local criteria applicable in the proposed West Eugene Enterprise Zone. On June 28, 2005, the City was notified that its application for designation of an enterprise zone was approved by the State of Oregon, with designation of the zone effective July 1, 2005. On June 29, 2005, the County Board of Commissioners (co-sponsors of the West Eugene Enterprise Zone) approved a version of the interim local criteria that did not include the council-supported cap on the amount of the tax exemption relative to the number of jobs created. The council subsequently, on June 29, 2005, approved a motion that directed the City Manager to withdraw the zone application, or to take steps necessary to terminate the City's sponsorship of the zone. The council also provided direction to begin working with the County on a mutually agreeable application for designation next year. A request to the State for withdrawal of the City's zone application was made on June 30, 2005. The State subsequently informed the City that the zone became effective on July 1, 2005, and encouraged the City and County to take time to discuss differences. Representatives from the City and the County met to work on interim local criteria that would be acceptable to both parties. On July 12, 2005, the Lane County Board of Commissioners approved a board order establishing local criteria. The criteria in the County's action differed materially from the City's position primarily in that it included a provision for the consideration of job retention in the calculation of benefits. The City Council met on July 18, 2005, and approved a motion confirming the council's prior actions on the Enterprise Zone and the local criteria, seeking the County's concurrence with the City's position, and asking for a response from the County by July 22, 2005. In the event that the County could not L:\CMO\2005 Council Agendas\M050808\S0508083.doc concur with the City's position, the council action called for the City to end the City's participation in the Enterprise Zone. The date by which the council was seeking a reply from the County was later amended to August 2, 2005. The Board of County Commissioners met on August 2, 2005, and amended its prior action on interim local criteria (resolution 05-8-2-5, attachment A) with the intent of reaching agreement with the City. The principal changes to the County's position were the dropping of the retained jobs provision, and the increase in the benefit per job cap to $96,000 or $32,000 per job, per year, whichever is less. Additionally, the County resolution calls for the consideration of the retention of existing jobs and support for existing businesses during the development of permanent standards and public benefit criteria. All other aspects of the public benefit criteria remain unchanged. Comparative examples of how various cap/retention options would impact a very large investment scenario are included in Attachment B. These examples are based on a $500,000,000 investment, $13,404,800 owed in taxes, creation of 95 jobs and a current work force of 950. An exemption cap of $30,000 (Example 1) with no retention provision results in a "capped" exemption of $2,850,000. Since the Oregon Administrative Rules preclude reduction of the tax exemption benefit by more than one- third, the resulting exemption would be $8,981,216. This is an exemption of 67% of taxes and would result in a payment to the zone sponsors of $4,423,584. An exemption cap of $30,000 for all new and retained jobs, a total of 1,045 jobs in this case (Example 2), would result in a capped exemption that exceeds the taxes due. The company would therefore receive an exemption for the full amount of the tax liability of $13,404,808 and no payment would be made to the zone sponsors. An exemption cap of $96,000 with no retention provision (Example 3) results in a capped exemption of $9,120,000. This is an exemption of 68% of taxes and would result in a payment to the zone sponsors of $4,284,800. This last example is based on the terms included in the latest County action. In the examples, the impact of job retention in calculating the exemption is clearly significant. However, the exemption difference between the $30,000 cap and the $96,000 cap is very narrow because of the impact of the state's one-third rule on exemption reduction. The results achieved in applying the different exemption caps will vary in other scenarios depending on the specific levels of investment and job creation. RELATED CITY POLICIES The enterprise zone tax exemption addresses the following related City policies: Sustainable Community Development - The council's Sustainable Community Development goal addresses high quality of life and a healthy economy. The availability of quality jobs is a basic quality of life issue. With a local unemployment rate that exceeds the national average, and local income levels below state and national averages, the creation of new production sector jobs is fundamental to the health of the local labor market. The creation of an enterprise zone will also provide an incentive for redevelopment, infill development, and brownfield redevelopment, which are primary sustainability goals. L:\CMO\2005 Council Agendas\M050808\S0508083.doc Growth Management - The enterprise zone advances the City's Growth Management goals by encouraging more intensive industrial development in a defined area that has been zoned accordingly, and where existing public infrastructure investments have already occurred. Fair, Stable, and Adequate Financial Resources - The long-term property tax revenues that result from new investments that are encouraged by the short-term tax exemption address the council's goal for financial resources adequate to maintain and deliver municipal services. COUNCIL OPTIONS The council has several options: 1. Approve the attached resolution that is consistent with the August 2, 2005, Lane County Board Order. 2. Don't approve the attached resolution. The City Manager will proceed with City Council direction to terminate the West Eugene Enterprise Zone, and rescind direction to work towards a future zone designation. 3. Other. CITY MANAGER'S RECOMMENDATION The City Manager recommends that the council adopt the resolution consistent with the August 2, 2005, Board Order approved by the Lane County Board of Commissioners, and begin working immediately with Lane County towards the establishment of permanent local criteria. SUGGESTED MOTION Move to adopt Resolution 4851 establishing interim local criteria applicable in the West Eugene Enterprise Zone and adopting a public benefit scoring system: and repealing Resolution 4845. ATTACHMENTS A. August 2, 2005, County Board Order B. Tax Exemption Examples C. Resolution FOR MORE INFORMATION Staff Contact: Denny Braud Telephone: 682-5536 Staff E-Mail: denny.braud~ci, eugene, or.us L:\CMO\2005 Council Agendas\M050808\S0508083.doc ATTACHMENT A IN THE BOARD OF COUNTY COMMISSIONERS OF LANE COUNTY, OREGON IN THE MATTER OF AMENDING RESOLUTION AND ORDER NO. 05-8-2- ) ORDER NO. 05-05-7-12-2 REGARDING ) ESTABLISHING INTERIM LOCAL ) CRITERIA APPLICABLE IN THE ) PROPOSED WEST EUGENE ) ENTERPRISE ZONE AND ADOPTING A ) PUBLIC BENEFIT SCORING SYSTEM ) WHEREAS, on June 29, 2005, the Board of Commissioners of Lane County adopted Order No. 05-6-29-15 establishing interim local criteria applicable in the West Eugene Enterprise Zone and adopting a public benefit scoring system, but not including the cap of $30,000 per new full-time job created as proposed by the City of Eugene, and WHEREAS, the State of Oregon Economic and Community Development Department has approved the application from the co-sponsors and designated the West Eugene Enterprise Zone (Director's Order No. DO-05-130, dated June 28, 2005), effective July 1, 2005, and WHEREAS, to date, the joint sponsors have not yet adopted substantially similar interim local criteria; however, individuals on the two elected bodies have continued to work towards that goal; and WHEREAS, in an effort to reach agreement with the City of Eugene and to move forward towards the consideration of permanent criteria, the Board of Commissioners wishes to amend Order 05-7-12-2 as described below, and WHEREAS, retention of existing jobs and support of existing businesses are important elements of the West Eugene Enterprise Zone, and those elements shall be discussed during the development of permanent standards and public benefit criteria, NOW, THEREFORE IT IS HEREBY RESOLVED AND ORDERED that the Lane County Board of Commissioners adopts as its findings the recitals stated above, and it is further ORDERED that, based on the above findings, the Board hereby establishes the following Interim Local Criteria for the proposed West Eugene Enterprise Zone: 1. Qualifying companies shall be required to make a public benefit contribution based on the following criteria: a. The extent to which the company hires from local training/referral agencies: b. The extent to which the company hires persons with barriers to employment: c. The extent to which the average compensation of new jobs is H:\BCC\ECONDEV~BO-W~ Enterprise zone -6.doc equal to or greater than the average county wage; d. The extent to which the company dedicates funds for non- mandated training and benefits; e. Whether the company is utilizing a previously developed site, including expansion of an existing site, or redevelopment of an industrial or brownfield site; f. The extent to which the assessed value of new investment exceeds $500,000 per acre; g. Whether the company is a small and/or local business or small and/or local start-up company. 2. Except as provided in Section 3, in no event shall the amount of the contribution exceed 25% of the tax exemption. 3. Notwithstanding the provisions of Sections 1 and 2 above, the three-year exemption benefit shall be limited to a maximum of $96,000 per job created or $32,000 per job created per year, whichever is less.. Tax exemption benefits in excess of that amount shall be paid as a public benefit contribution. A business whose tax exemption benefit is anticipated to exceed the job cap limitation described in Section 3 shall make a public benefit contribution based on the anticipated excess, with a reconciliation of the contribution amount to the extent allowed by law to occur in the third year of the exemption, based on records of actual employment. 4. During the period these Interim Criteria are in effect, the per-job limit on the three-year tax exemption benefit described in the first sentence of Section 3 may be waived or modified for a specific applicant if the City Council and the Lane County Board of Commissioners each agree to the waiver or modification. The co-sponsors' decision to waive or not to waive the limit shall be based on consideration of the applicant's proposed capital investment in the West Eugene Enterprise Zone; the anticipated employment resulting from the applicant's investment; the applicant's commitment to make other beneficial community investments; local economic conditions at the time of the application, including but not limited to the unemployment rate, market trends, and competition for attracting new businesses to the community; the co-sponsors' budget circumstances at the time of the application and the effect of reducing the public benefit contribution on the co-sponsors' ability to provide public services to their citizens; and the co-sponsors' judgment as to the reasonableness of the public benefit contribution in light of the foregoing factors and in comparison to the public benefit contribution paid by other companies in the West Eugene Enterprise Zone. ORDERED that the Board of Commissioners adopts the Public Benefit Criteria Scoring System contained in Exhibit A attached hereto and incorporated herein, to implement the Interim Local Criteria set forth above, for determining exemptions for future investments made by companies participating in the proposed West Eugene Enterprise Zone, and it is further ORDERED that beginning in August 2005, Lane County and the City of Eugene will undertake a process to develop and adopt permanent standards and public benefit criteria for the West Eugene Enterprise Zone. The process will begin with convening a joint H:\BCC\ECONDEV~BO-VVE Enterprise zone -6.doc City/County committee composed of two elected officials from each governing body and a total of four community representatives, two of whom shall be appointed by each governing body. The committee will meet through January, 2006, as needed, to develop a proposal for permanent standards and public benefit criteria, and it will provide opportunities for stakeholder participation and community involvement, including public hearings. ORDERED that this Order shall become effective immediately upon adoption by the Board and adoption of a substantially similar resolution by the Eugene City Council. DATED this 2nd day of August, 2005. Chair, Lane County Board of Commissioners H:\BCC\ECONDEV~BO-WE Enterprise zone -6.doc Exhibit A PUBLIC BENEFIT CRITERIA (2005) The average wage for all new jobs is: Points > 100% and _< 110% of average county wage 25 > 110% and < 115% of average county wage 35 > 115% of average county wage 40 Points > 10% - < 35% of all new jobs 5 > 35% - < 50% of all new jobs 15 > 50% of all new jobs 25 Points > 5% - < 10% of all new jobs 5 > 10% - _< 20% of all new jobs 10 > 20% of all new jobs 15 Points > 1% - < 5% of entire company payroll is dedicated 5 to non-mandated training & benefits > 5% - < 10% of entire company payroll is dedicated 10 to non-mandated training & benefits > 10% of entire company payroll is dedicated to 15 non-mandated training & benefits Whether the company is a small bUginess. < 50 employees at time of precertification H:\BCC\ECONDEV~BO-WE Enterprise zone .-6.doc Points Expansion at existing site 1 Redevelop preexisting industrial site 2 or brownfield site Investment > $500,000 per acre CRITERIA NOTES: Examples of qualified local training or referral agencies: Lane Workforce Partnership Oregon Employment Department Lane Community College Adult/Family Services Vocational Rehabilitation Private Rehabilitation Agencies Goodwill Industries Catholic Community Services St. Vincent dc Paul Salvation Army Examples of persons with employment barriers: Low/moderate income Disabled Injured Veteran Welfare recipient Displaced worker Teens/youth Ex-felon Older workers Short-term jobs history Displaced homemaker Drug/alcohol abuse history Protected classes (Female head of household, Hispanic, Black, Asian or Pacific Islander, American Indian or Alaskan Native) H:\BCC\ECONDEWBO-WE Enterprise zone -6.doc ~ ~ ~ Qualifying non-government mandated benefits include: health/life/disability insurance, retirement, profit-sharing, paid vacation/holiday, child care, transportation, sick leave, tuition assistance, career development/training. Based on the number of public benefit criteria points earned in each Enterprise Zone tax exempt year, each I company shall make a public benefit contribution which Shall be a percentage of the total tax eXe~nPtion in any given year, based on the following: Points Public Benefit Earned Contribution % 80+ 0% contribution 0-79 formula: Contribution due = a ual to Example: If point total is 40 25 minus [40 ) 80) X 25] = contribution of 12.5% Example: If point total is IO 25 minus [10 ) 80) X 25] = contribution of 21.875% DISTRIBUTION OF PUBLIC BENEFIT CONTRIBUTION Public benefit contribution will be paid annually, distributed as follows: · 40% to Lane County; · 40% to City of Eugene; · 20% to programs sponsored by educational institutions, including Section 501(c)(3) tax exempt education foundations. The Enterprise Zone Committee will reconvene in any year in which there is at least $10,000 in this category to distribute. A competitive Request for Proposal process will be conducted by the Enterprise Zone Committee to allocate the available funds. The Enterprise Zone Committee will consist of two City Councilors appointed by the Eugene City Council, two County Commissioners appointed by the County Board of Commissioners, and two at- large members appointed by the four Councilors/Commissioners. Administrative costs of the distribution process may be taken from the funds available. H:\BCC\ECONDEV~BO-WE Enterprise zone -6.doc New Investment $ 500,000,000 Overlapping Tax Rate $ 18.88 2007 2008 2009 2010 2011 2006 Investment $ 200,000,000 $134,000,000 $ 92,000,000 $ 58,000,000 2007 Investment $ 150,000,000 $100,500,000 $ 69,000,000 $ 43,500,000 2008 Investment $ 150,000,000 $100,500,000 $ 69,000,000 $ 43,500,000 Assessed Value $134,000,000 $192,500,000 $ 227,500,000 $ 112,500,000 $ 43,500,000 Total Tax Liability Tax Liability $ 2,529,920 $ 3,634,400 $ 4,295,200 $ 2,124,000 $ 821,280 $ 13,404,800 Assumpti ns: Tax Exemption: Number of new jobs created 95 Total 3yr Tax Liability on $500M investment $ 13,404,800 Number of retained jobs 0 Number of retained jobs w/pay greater 0 Exemption under job creation cap $ 2,850,000 than avg. County wage (living wage) 0 Exemption under job retention cap $ - Total tax exemption granted under the cap $ 2,850,000 Cap per job created $ 30,000 Min. tax exemption under 1/3 reduction rule $ 8,981,216 Cap per living wage job retained $ Tax exemption granted $ 8,981,216 67% Payment to Zone Sponsor $ 4,423,584 rn ~ New Investment $ 500,000,000 Overlapping Tax Rate $ 18.88 2007 2008 2009 2010 201t 2006 Investment $ 200,000,000 $134,000,000 $ 92,000,000 $ 58,000,000 2007 Investment $ 150,000,000 $100,500,000 $ 69,000,000 $ 43,500,000 2008 Investment $ t50,000,000 $100,500,000 $ 69,000,000 $ 43,500,000 Assessed Value $134,000,000 $192,500,000 $227,500,000 $ 112,500,000 $ 43,500,000 Total Tax Liability Tax Liability $ 2,529,920 $ 3,634,400 $ 4,295,200 $ 2,124,000 $ 821,280 $ 13,404,800 Assumpti ns: Tax Exemption: Number of new jobs created 95 Total 3yr Tax Liability on $500M investment $ 13,404,800 Number of retained jobs 950 Number of retained jobs w/pay greater 0 Exemption under job creation cap $ 2,850,000 than avg. County wage (living wage) 0 Exemption under job retention cap $ 28,500,000 Total tax exemption granted under the cap $ 31,350,000 Cap per job created $ 30,000 Min. tax exemption under 1/3 reduction rule $ 8,981,216 Cap per living wage job retained $ Tax exemption granted $ 13,404,800 100% Payment to Zone Sponsor $ - ITl X New Investment $ 500,000,000 Overlapping Tax Rate $ 18.88 2007 2008 2009 20t 0 2011 2006 Investment $ 200,000,000 $134,000,000 $ 92,000,000 $ 58,000,000 2007 Investment $ t50,000,000 $100,500,000 $ 69,000,000 $ 43,500,000 2008 Investment $ 150,000,000 $100,500,000 $ 69,000,000 $ 43,500,000 Assessed Value $134,000,000 $192,500,000 $ 227,500,000 $ 112,500,000 $ 43,500,000 Total Tax Liability Tax Liability $ 2,529,920 $ 3,634,400 $ 4,295,200 $ 2,124,000 $ 821,280 $ 13,404,800 Assumptions: Tax Exemption: Number of new jobs created 95 Total 3yr Tax Liability on $500M investment $ 13,404,800 Number of retained jobs 0 Number of retained jobs w/pay greater 0 Exemption under job creation cap $ 9,120,000 than avg. County wage (living wage) 0 Exemption under job retention cap $ - Total tax exemption granted under the cap $ 9,120,000 Cap per job created $ 96,000 Min. tax exemption under 1/3 reduction rule $ 8,981,216 Cap per living wage job retained $ Tax exemption granted $ 9,120,000 68% Payment to Zone Sponsor $ 4,284,800 Ill ATTACHMENT C RESOLUTION NO. A RESOLUTION ESTABLISHING INTERIM LOCAL CRITERIA APPLICABLE IN THE WEST EUGENE ENTERPRISE ZONE AND ADOPTING A PUBLIC BENEFIT SCORING SYSTEM; AND REPEALING RESOLUTION 4845. 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. On June 27, 2005, the Council approved Resolution 4845, adopting Interim Local Public Benefit Criteria and other provisions pertain!ng to the West Eugene Enterprise Zone in anticipation of the designation of the Zone. Resolution 4845 provided that it would become effective upon adoption by the Council and adoption of a substantially similar resolution by the Lane County Board of Commissioners. On June 29 and on July 12, 2005, the Board of Commissioners adopted orders, but they were not substantially similar to Resolution 4845. This resolution replaces Resolution 4845. D. On August 2, 2005, the Board amended its July 12, 2005 order revising the interim local criteria. This Resolution is substantially similar to Order #05-8-2-5. E. On June 28, 2005, by Director's Order No. DO-05-130, the Oregon Economic and Community Development Department approved the application and designated the West Eugene Enterprise Zone, effective July 1, 2005. F. 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. G. Support of existing businesses and retention of existing jobs are important elements of the West Eugene Enterprise Zone, and those elements should be discussed during the development of permanent standards and public benefit criteria. Resolution- 1 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 following Interim Local Benefit 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: 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; 5. Whether the company is utilizing a previously developed site, including expansion of an existing site, or redevelopment of an industrial or brownfield site; 6. The extent to which the assessed value of new investment exceeds $500,000 per acre; 7. 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) of this section, the three-year tax exemption benefit shall be limited to a maximum of $96,000 per job created or $32,000 per job created per year, whichever is less. Tax exemption benefits in excess of that amount shall be paid as a public benefit contribution. A business whose tax exemption benefit is anticipated to exceed the job cap limitation described in this subsection (c) shall make a public benefit contribution based on the anticipated excess, with a reconciliation of the contribution amount to the extent allowed by law to occur in the third year of the exemption, based on records of actual employment. (d) During the period these Interim Criteria are in effect, the per-job limit on the three-year tax exemption benefit described in the first sentence of subsection (c) of this section may be waived or modified for a specific applicant if the City Council and the Lane County Board of Commissioners each agree to the waiver or modification. The co-sponsors' decision to waive or not to waive the limit shall be based on consideration of the applicant's proposed capital investment in the West Eugene Enterprise Zone; the anticipated employment resulting from the applicant's investment; the applicant's Resolution - 2 commitment to make other beneficial community investments; local economic conditions at the time of the application, including but not limited to the unemployment rate, market trends, and competition for attracting new businesses to the community; the co-sponsors' budget circumstances at the time of the application and the effect of reducing the public benefit contribution on the co-sponsors' ability to provide public services to their citizens; and the co-sponsors' judgment as to the reasonableness of the public benefit contribution in light of the foregoing factors and in comparison to the public benefit contribution paid by other companies in the West Eugene Enterprise Zone. Section 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. Beginning in August, 2005, the City of Eugene and Lane County will undertake a process to develop and adopt permanent standards and public benefit criteria for the West Eugene Enterprise Zone. The process will begin with convening a joint City/County committee composed of two elected officials from each governing body and a total of four community representatives, two of whom shall be appointed by each governing body. The committee will meet through January, 2006, as needed, to develop a proposal for permanent standards and public benefit criteria, and it will provide opportunities for stakeholder participation and community involvement, including public hearings. Section 4. Resolution 4845 is repealed. Section 5. This Resolution shall become effective immediately upon its adoption. The foregoing Resolution adopted the ~ day of August, 2005. City Recorder Resolution - 3 Exhibit A PUBLIC BENEFIT CRITERIA (2005) The average wage for all new jobs is: Points > 100% and < 110% of average county wage 25 > 110% and < 115% of average county wage 35 > 115% of average county wage 40 Points > 10% - < 35% of all new jobs 5 > 35% - < 50% of all new jobs 15 > 50% of all new jobs 25 The extent to WhiCh the company hires PersOnS With barriers to employment,** Points ~ 5% - < 10% of all new jobs 5 > 10% - < 20% of all new jobs 10 > 20% of all new jobs 15 Points 1% - < 5% of entire company payroll is dedicated 5 to non-mandated training & benefits 5% - < 10% of entire company payroll is dedicated 10 to non-mandated training & benefits 10% of entire company payroll is dedicated to 15 non-mandated training & benefits Points < 50 employees at time of precertification 10 Physical location as the existing faCility)i or redevelopment of an induStrial or brownfield sitei Points Expansion at existing site 1 Redevelop preexisting industrial site 2 or brownfield site Points Investment k $500,000 per acre 1 CRITERIA NOTES: Examples of qualified local training or referral agencies: Lane Workforcc Partnership Oregon Employment Department Lane Community College Adult/Family Services Vocational Rehabilitation Private Rehabilitation Agencies Goodwill Industries Catholic Community Services St. Vincent de Paul Salvation Army Examples of persons with employment barriers: Low/moderate income Disabled Injured Veteran Welfare recipient Displaced worker Teens/youth Ex-felon Older workers Short-term jobs history Displaced homemaker Drug/alcohol abuse history Protected classes (Female head of household, Hispanic, Black, Asian or Pacific Islander, American Indian or Alaskan Native) Qualifying non-government mandated benefits include: health/life/disability insurance, retirement, profit-sharing, paid vacation/holiday, child care, transportation, sick leave, tuition assistance, career development/training. Based on the number of public benefit criteria points earned in each Enterprise Zone tax exempt year, each company shall make a public benefit contribution which shall be a percentage of the total tax exemption in any given year, based on the following: Points Public Benefit Earned Contribution % 80+ 0% contribution 0-79 , formula: Contribution due = a ual to Example: If point total is 40 Example: If point total is 10 DISTRIBUTION OF PUBLIC BENEFIT CONTRIBUTION Public benefit contribution will be paid annually, distributed as follows: 40% to Lane County; 40% to City of Eugene; 20% to programs sponsored by educational institutions, including Section 501(c)(3) tax exempt education foundations. The Enterprise Zone Committee will reconvene in any year in which there is at least $10,000 in this category to distribute. A competitive Request for Proposal process will be conducted by the Enterprise Zone Committee to allocate the available funds. The Enterprise Zone Committee will consist of two City Councilors appointed by the Eugene City Council, two County Commissioners appointed by the County Board of Commissioners, and two at-large members appointed by the four Councilors/Commissioners. Administrative costs of the distribution process may be taken from the funds available.