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HomeMy WebLinkAboutResolution No. 4851 RESOLUTION NO. 485~ A RESOLUTION ESTABLISHING INTERIM LOCAL CRITERIA APPLICABLE IN THE WEST EUGENE ENTE~RISE 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 Jmne 27, 2005, the Cotmcil approved Resolution 4845, adopting Interim Local Public Benefit Criteria and other provisions pertaining 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. 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 Jmne 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 fbr 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: Sect____ion_ _~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 Resolution - 2 of the applicant's proposed capital investment in the West Eugene Enterprise Zone; the anticipated emplo~yznent 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 unemplos~nent rate, maffket 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~~ 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 ?f 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 conm~ittee wilt 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 communky 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 8t~ day of August, 2005. Resolution - 3 PUBLIC BENEFIT CRITERIA (20(}5) 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% - _< 5(}% of all new jobs > 50% of all new jobs Points 5 15 25 5% - < 10% of all new jobs 10% - < 2(}% 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 entire company payroll is dedicated to non-mandated training & benefits Points 10 15 < 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 CRITE~A 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 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 Sho~-term jobs history Displaced homemaker Drag/alcohol dbuse history Promoted classes (Female head ofhousehold, 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. Points Earne_.._ __ d 80+ PUblic Benefit C°ntribution % (}% contribution Contribution due = a Exam~e~: point total is 40 ~: If point total is 1~ DIST~BUT!ON 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 reeonvene in any year in which there isat least $!0iOOO 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.