HomeMy WebLinkAboutItem B: Local Economic Development
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Work Session: Local Economic Development Plan – Part 2
Meeting Date: May 13, 2009 Agenda Item Number: B
Department: Central Services Staff Contact: Jon Ruiz
www.eugene-or.gov Contact Telephone Number: 682-5336
ISSUE STATEMENT
The work session is a follow up to council’s discussion on April 13, 2009 regarding potential responses
to the current economic issues impacting the community. Staff will present next steps to develop a
series of stimulus actions that emphasize the City’s role in supporting job creation and retention as well
as investment and development in the community.
BACKGROUND
Council had an initial conversation regarding economic development at the January 28, 2009 work session
and unanimously approved adoption of a City of Eugene Mayor and City Council Economic Development
Statement. (See Attachment A for the statement.) At the work session, staff presented background
information on 1) the structure of the local economy, income, and industry issues and 2) existing City
efforts to support local business and economic development. The City Manager indicated that a slate of
“local stimulus actions” would be assembled and brought back for council’s review and consideration.
The economic stimulus discussion continued at the April 13, 2009 work session, during which council
discussed a list of local economic development actions. (See Attachment B for the lists.) The proposed
local stimulus actions were organized into the categories of job creation and economic growth in
alignment with the January 28, 2009 strategies. There was also a section targeted at Eugene’s
downtown. Council reviewed a listing of almost 70 City actions that were subdivided according to
current status: 1) actions that have been implemented, 2) actions that are being examined with respect to
feasibility, and 3) actions for council to consider and discuss.
Since the April 13 meeting, council has acted or is scheduled to act on several of the items. Council
took action to increase funding for affordable rental rehabilitation on April 27, 2009. Council is
scheduled to take action on federal stimulus funding for homelessness and housing assistance on May
11, 2009. Federal notification of stimulus funding to supplement the Community Development Block
Grant programs is anticipated in the near future. Once staff receives the notification, the actions to
supplement the Business Development Fund and to support foreclosure counseling will be scheduled for
council consideration.
At this work session, council is asked to consider three additional actions: 1) sale of surplus City real
estate for identified development projects, 2) initiation of procedural code amendments, and 3) Urban
Renewal Plan amendment. A summary and the identified next steps for each of the three items is
provided below.
1.Sale of surplus City real estate for identified development projects:
Several surplus City parcels appear to have significant development potential. The public benefit of
such development is not only the sale proceeds but also the end use, construction activity in this time
of need, and the resulting forward momentum. Two such examples include the property on Franklin
Boulevard (opposite from the Phoenix Inn) and the site directly east of the Wayne Morse Federal
Courthouse. Private parties have already expressed interest in several of the City owned properties;
additional interest could be generated by issuing a Request for Proposals for development projects.
Redevelopment and new development projects could have an immediate and significant economic
impact. Prior to sale, the City’s potential future interest in the properties would need to be assessed
in comparison with the positive community impacts associated with the development by private
parties.
Nest Steps
: Return to council with recommendations for declaring certain parcels surplus and with
a proposed disposition process.
2.Procedural Land Use Code amendments:
At the April 13 meeting, we discussed procedural and livability code standards and heard feedback
that code amendments that address livability issues could be more controversial and more
complicated. A few small code amendments could address timelines and submittal requirements that
could have an impact to allow projects to continue to move forward, or move forward at a slower
pace and keep them alive through this difficult economic time.
Next Steps:
A) Council initiation of small procedural Land Use Code amendments to consider extensions,
submittal requirements and processing timelines related to land use applications.. The process
will have opportunities for public comment and public involvement and will require Planning
Commission review followed by council review and action.
3.Urban Renewal Plan amendment:
At the April 22, 2009 work session, council discussed a potential amendment of the Downtown
Urban Renewal District Plan. As indicated during the discussion, the Maximum Indebtedness
(spending limit cap) in the district plan would need to be expanded to provide financial capacity to
support development opportunities in the downtown core, including a potential Veterans Affairs
hospital; the proposed Lane Community College Downtown Center expansion/addition; investments
in support of the Arts and Culture District along Willamette and Broadway; urban design and
streetcar planning; implementation of the Park Blocks Master Plan and improvements for the
Farmers’ Market and Saturday Market; build out of civic center; and other downtown infrastructure
or development projects. Individually and collectively the investments could provide a significant
economic boost to downtown as well as to the community as a whole. Major amendments to urban
renewal plans are required by state statute to follow a specific process. A summary of the
amendment process and a draft timeline is provided as Attachment C.
Next Steps
: Staff will schedule future work sessions with the Urban Renewal Agency Board and
council to discuss the potential projects, financial requirements, and the amendment process.
COUNCIL OPTIONS
1.Direct staff to pursue next steps as outlined above for each of the three proposed economic
development actions.
2.Direct staff to pursue next steps as outlined above for only certain proposed economic development
actions.
3.Direct staff to pursue next steps as outlined by staff and modified by council for all or some of the
proposed economic development actions.
4.Take no action with regard to the proposed economic development actions.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends that council direct staff to pursue next steps for each of the three
proposed economic development actions.
SUGGESTED MOTION
1.Move to direct staff to pursue the next steps, as outlined, to implement the “sale of surplus City real
estate for identified development projects.”
2.Move to initiate code amendments to consider extensions, submittal requirements, and processing
timelines related to land use applications..
3.Move to direct staff to pursue next steps, as outlined, to implement “Urban Renewal Plan
amendment.”
ATTACHMENTS
A.Adopted City of Eugene Mayor and City Council Economic Development Statement
B.Possible Local Stimulus Actions and Items for Council Discussion from 4/13/09 Work Session
C.Summary of Urban Renewal Plan Amendment Process and Draft Timeline
FOR MORE INFORMATION
Staff Contact: Jon Ruiz
Telephone: 682-5336
Staff e-mail: jon.r.ruiz@ci.eugene.or.us
ATTACHMENT A
Adopted City of Eugene Mayor and City Council
Economic Development Statement
Over the past several months, we have heard growing concerns from individuals, families, business
owners, non-profit agencies and other organizations about the impact of the current financial crisis
gripping this country and the world. Unemployment is up. Businesses are closing or struggling.
Health and human services use are up. Lane Transit District (LTD) is reducing services. Housing
values decline, yet the need for affordable housing continues to increase.
In response, a high priority in 2009 is to build an independently sustainable local economy to weather
the current crisis and prepare for the next economy that will emerge. We cannot ignore these issues or
the opportunities that will arise from them. It would be irresponsible of us to do so. However, this
City cannot do this alone, and we encourage public, private, and non-profit partners to join us in this
quest.
The outcomes we are pursuing are to:
?Increase per capita income as a percentage of the Oregon average. Currently, the
Eugene/Springfield area lags the state average by 17%. Increasing this average will add wealth and
opportunity in the community.
?Retain and increase jobs. With unemployment at over 8%, maintaining a steady job base and
strong and ready workforce are paramount.
The strategies to achieve these outcomes are:
?Immediate (2009) – emphasis on supporting existing businesses and retaining existing jobs.
?Near-Term (2009/2010) – continuing to position the community for the next economy and building
tools to accomplish the outcomes. Our challenge is to increase innovation, competitiveness,
private investment and community sustainability in the Next Eugene Economy, which will emerge
in the context of successful, short-term solutions to the unprecedented financial, economic, and
fiscal emergencies now facing our region, state, and country.
The community will be invited to join us in discussions leading to an action plan to address the
immediate strategy of supporting existing businesses and retaining existing jobs. We expect an action
plan to be considered by the City Council by March 31.
We cannot wait for or expect Federal or State government to solve all of our local issues. We will
work with both; however, we must be proactive in preparing ourselves. Our intent is to structure a
deliberate and inclusive, but urgent community conversation.
ATTACHMENT C
Summary of Urban Renewal Plan Amendment Process
& Draft Timeline
Substantial Plan Amendment Process:
The need for a “substantial amendment” to the
district’s plan is determined by Oregon Statute and the district’s plan. Certain types of
substantial amendments require a special City-wide notice. These substantial amendments
include:
Changes in the maximum indebtedness; and
o
Expansion of the district boundaries by more than 1%
o
A draft timeline with key dates is provided below.
June 11 Eugene Redevelopment Advisory Committee (ERAC) discussion and
recommendation to staff
July 8
Council work session on amendments (recommended but not required)
July 10 Notification of taxing districts
July 17 Postcard to the general public – include hearing date and web address for more
information
July 27 Planning Commission review and comment
Sept 16
Urban Renewal Agency Board work session to review comments from effected
taxing jurisdictions
Sept 21
City Council Public Hearing on Ordinance Amending Plan
Oct 12
Council Action on Ordinance to amend the Plan
th
Nov 11 Ordinance becomes law (30 day following approval)
Downtown Urban Renewal Ideas:
The ideas in the chart below were initially discussed at
the April 22, 2009 work session and reflect an approach to reinforce existing programs and
businesses downtown.
Program Connection
Open Space, Landscaping & Amenities 10th and Charnelton, other DT open spaces
LCC Downtown Campus Expansion / Existing LCC Campus
Addition
Arts & Culture Existing Plan Implementation, Lord
Leebrick, Hult, DIVA, Shedd
Implementation of the Park Blocks Master Building on the success of the seasonal
Plan and Improvements for the Farmer’s markets
Market / Saturday Market
Existing Business Improvements Includes ideas to facilitate green
infrastructure and green upgrades, steam
conversion, building improvements and
safety planning
Potential VA Hospital Council Goal on hospitals
Urban Design & Streetcar Planning Existing transportation policies, economic
development
Build Out Civic Center Public space needs and investment strategy
$15 to $20 million