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HomeMy WebLinkAboutItem C: Envision Eugene ECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Work Session: Envision Eugene Update: Economic Prosperity Meeting Date: December 15, 2010 Agenda Item Number: C Department: Planning and Development Staff Contact: Lisa Gardner/Mike Sullivan www.eugene-or.gov Contact Telephone Number: 541-682-5208/541-682-5448 ISSUE STATEMENT Envision Eugene is a collaborative community-based effort to balance the sustainability triple-bottom- line framework of social equity, environmental stewardship and economic prosperity in planning for 34,000 new residents anticipated in the next 20 years. This work session provides an opportunity to learn more about one aspect of the triple-bottom-line, economic prosperity. BACKGROUND The City Council Vision embodies a triple-bottom-line framework, balancing social equity, environmental stewardship and economic prosperity. Specifically, the Vision is to: Value all people, encouraging respect and appreciation for diversity, equity, justice, and social well-being, recognizing and appreciating our differences and embracing our common humanity as the source of our strength. Be responsible stewards of our physical assets and natural resources, sustaining our clean air and water, beautiful parks and open spaces, livable and safe neighborhoods, and fostering a vibrant downtown, including a stable infrastructure. Encourage a strong, sustainable and vibrant economy, fully utilizing our educational and cultural assets, so that every person has an opportunity to achieve financial security. As discussed during the November 22, joint City Council/Planning Commission work session, the triple- bottom-line framework will anchor the Envision Eugene Council work sessions in December, January and February, leading up to council decisions in late February. Legally, the City must provide enough residential, commercial and industrial land to accommodate 20 years of growth, and establish a Eugene-only urban growth boundary (UGB). As important, Envision Eugene is describing how we want to grow; creating a future picture of what Eugene will look like, and “moving the dials” on accomplishing council and community goals for social equity, environmental stewardship and economic prosperity. In late February, the council will be presented with a “tool box” of strategies and tactics to consider for accomplishing the work of Envision Eugene. The various strategies will have ranging impact on Z:\CMO\2010 Council Agendas\M101215\S101215C.doc “moving the dials” and the concurrent impact on satisfying a portion of the residential, commercial and industrial land need. By state law (which is consistent with community values), land within the current urban growth boundary must first be used efficiently before the UGB can be recommended for expansion. Practically, the council will choose a package of strategies that satisfies all or a portion of the land need within the current UGB, with any unmet residual earmarked for UGB expansion. Each strategy will be accompanied by one or more tactics, which are the actions that must be taken to successfully implement a strategy. If tactics are not approved concurrently with a strategy, “phantom capacity” is created, and the strategy is not a viable means of satisfying the land need within the current UGB. Several Envision Eugene work sessions are planned with the council over the next three months. In December and January, the foundation for each of the triple-bottom-line elements – social equity, environmental stewardship and economic prosperity – will be presented and discussed. These work sessions will not include strategies and tactics, but baseline data, goals, frameworks, etc. Work sessions in January and February will begin to introduce strategies and tactics as the Community Resource Group (CRG) continues its work. Similar to the joint Council/Planning Commission work session, different CRG members will be invited to participate in the work sessions to add their perspectives to the conversations. Economic Prosperity Foundation Developing and maintaining a local economy that ensures that every person has an opportunity to achieve financial security is a part of the City Council Vision, and must be a high priority for the collective work of the private, public and non-profit communities. Last year, the Joint Elected Officials of Lane County and the cities of Eugene and Springfield recognized this with their collective approval of a Regional Prosperity Economic Development Plan. The Plan includes goals to reduce the local unemployment rate to, or below the state average, and increase the average wage to or above the state average. Both economic indicators have been stubbornly entrenched for decades, negatively impacting the achievement of financial security for many in our community. Over 40 percent of the children enrolled with Eugene 4J School District are eligible for the free or reduced lunch program. Nearly 60 percent of Bethel School District children are eligible. Last year, 34 percent of Lane County householders were only able to pay a month or less of bills if the main source of income stops. Over 20 percent of households received some form of public assistance in the previous 12 months. 18 percent of households are between 100-200 percent of the federal poverty guideline, making them ineligible for many services, but without adequate income to meet their family’s basic needs per self sufficiency standards. The percentage of households reporting problems affording utilities increased from 8.9 percent to 20.2 percent. The last one night homelessness count in January 2010 recorded 3,971 individuals reporting themselves as homeless in Lane County. Z:\CMO\2010 Council Agendas\M101215\S101215C.doc Lane County’s average wage has lagged behind the national and state averages for over 25 years. The average wage in Lane County in 2009 was $35,475, which is 16 percent below the state average. Similarly, unemployment rates in Eugene have historically remained about the same or slightly higher than the state and anywhere from 1-3 percent higher than the nation over the past 15 years. Not addressing these issues as part of Envision Eugene will be a missed opportunity to improve individual and family financial security, and may ensure that economic prosperity remains out of reach for many community members for years. Envision Eugene is not the only avenue to address this entrenchment, but it is an important opportunity. The December 15 work session will begin laying the economic prosperity foundation for responding to this need as a part of Envision Eugene. The council will not be asked to make any decisions during this work session. RELATED CITY POLICIES  Most of the Growth Management Policies are related to Envision Eugene, most notably Policy 16 relates to the topic of Economic Prosperity. Policy 16 – Focus efforts to diversify the local economy and provide family-wage jobs o principally by supporting local and environmentally-sensitive businesses. Direct available financial and regulatory incentives to support these efforts. COUNCIL OPTIONS For discussion only, no formal action is required CITY MANAGER’S RECOMMENDATION No action is required on this item. Therefore, no recommendations are offered by the City Manager. SUGGESTED MOTION No action is required on this item. Therefore, no motions are suggested. ATTACHMENTS A. CRG Worst and Best Outcomes for Economic Development B. JEO Regional Prosperity Economic Development Plan FOR MORE INFORMATION Staff Contact: Lisa Gardner ,541-682-5208/Mike Sullivan, 541-682-5448 Staff E-Mail: lisa.a.gardner@ci.eugene.or.us; mike.c.sullivan@ci.eugene.or.us Project Website: www.envisioneugene.org Z:\CMO\2010 Council Agendas\M101215\S101215C.doc ATTACHMENT A WORST THE POSSIBLE OUTCOMES IF WE DON’T’ WORK TOGETHER FOR ECONOMIC DEVELOPMENT WHAT WE DON'T WANT Nothing happens. We do nothing! We do nothing! Nothing happens or things get worse. We keep spending money and energy and don’t move forward. There is no economic development. No answer trend continues. Nothing happens. We develop a terrible reputation in the business relocation world and nothing happens. Nothing changes and we continue to have lots of small, dispersed, unusable, industrial parcels and no consolidated parcels in usable desirable locations, so all the new clean tech and green businesses we want go elsewhere. There is no economic development plan because we cannot work together. We spend all this time but when the decision time comes, we still retreat to our old silos and refuse to agree on a solution. We polarize, set up camps, shout across the abyss and don’t get any economic development plan! . We become a third world community and are constantly squabbling about how to provide everyone’s needs for social services. We don’t do what is necessary to create jobs. There are no jobs. Those who stay in place are an even greater burden on social services and we spiral into a depressed, desolate community. There is a downward spiral of fewer jobs, greater strain on support services, less money for support services, those with money and business leave. We are not developing economic development policy or action and incentives. If we keep wasting our time and don’t reach consensus, the City Manager will submit his proposal and the City Council will make (or not make) a decision. We end up with no land for businesses and industry to develop or grow into. Local business can’t find land to grow and thrive. Not enough land for industrial with net results in lost opportunities, jobs. We will make no provision for the growth and health of our existing businesses and they leave and not a single new business will ever come to town. We don’t have any economic development and our community suffers with low wages and poor health. Wages continue to decline. Low wage jobs prevail. Quality of life can only get you so far. Lower wages for service work proliferates. Development will occur inefficiently, in the most costly way, and fewer jobs will result. We become a community divided by class. Eugene becomes economically gentrified. We fail to be able to offer a variety of job types to future residents and we become a less diverse community and less able to expect our children to stay and find jobs. There will be a widened income gap. Average medium income continues to decline widening the gap with the state. Our income continues to fall below state and nation. Wage slaves are suffering in a low pay toxic job while living on the streets and not providing for their families. Community Resource Group October 12, 2010 WHAT WE DON'T WANT (cont.) People in our community don’t have living wage jobs and are not able to feed and house their families. People are increasingly unable to care for their families. We don’t provide family wage jobs that provide living wages and benefits and which can allow our children to stay and raise a family and survive economically. Family wages continue to decline and everyone’s quality of life becomes their worst nightmare. We don’t attract enough family wage jobs and people can’t afford to live here. They live in outlying towns and we have air pollution, more traffic and decreased quality of life. We will not have any land zoned and ready for a job and income producing opportunity when it appears on our doorstep and it ends up going to some other town. Industry will go other places and it may not be in our region, thus the wage gap stays in place. People leave town in search of employment. People leave to find jobs elsewhere. Our kids graduate and leave for jobs elsewhere with no hope of returning. Our kids leave. None of our children can afford to live here, so none of us get to see our grandchildren. We not only don’t have jobs and economic success, we lose what we have. The gap between wages and jobs increases and existing industry moves, leaving more vacant buildings. People stay or become unemployed. No economic progress happens. Our existing businesses can’t grow and expand so they leave, taking jobs and tax revenue with them. We chase large industry away and do not encourage our local industry. No new business would locate to Eugene and our average wages continue to fall compared to State and United States average. Very little growth occurs with present industry and no new industry is attracted to Eugene. No new industries come to Eugene. We continue to lose ground in total number of jobs. There are lost opportunities for high tech clean high wage jobs. I am afraid there will be no innovation to help small businesses that already are good neighbors because energy instead is spent on attracting large industry. They will be given subsidies that will cost all other tax payers to provide infrastructure and then leave Eugene when tax subsidies end. As good businesses grow they have to leave, unemployment and poverty remains a very real problem. Economic We battle, then settle on a midpoint solution that only “sort of” protects our valued resources and neighborhoods and fails to offer enticing industrial land opportunities. We are afraid prime farmland lost will be lost to industry. Industrial uses occur near incompatible other uses. We are afraid industry will be placed outside residential centers and therefore will not be a responsible neighbor. We will see the conversion of industrial to other unintended uses. Development will be driven by lowest common denominator approaches like recruitment of those who are in for the short term exploitations of community. In our desperation to provide new jobs through industry we allow the siting of companies that are not interested in long term location here and do not act as responsible stewards or engaged community partners. We are left with abandoned buildings. Community Resource Group October 12, 2010 WHAT WE DON'T WANT (cont.) Unemployment increases. High unemployment and low wages continue to be a hardship for many in the community. We create economic polarization of high end “professional” and low paying service or a/o paying unemployment. We expand the Urban Growth Boundary and end up with unused brown fields left over in town. We will see more brown field sites and displaced unemployed workers. Industries will be allowed to locate and not have proper pollution controls and are allowed to pay low wages. Too much will be compromised. We don’t like ourselves as a community. Neighborhood clashes result in growth by lawsuit. Old enmities will re-emerge. No growth will occur or possibly Eugene will have negative growth. Eugene is no longer a desirable place to live. We develop a reputation for a city where no one wants to be. Quality of life decreases because underlying economic/financial base of the community erodes. Funds to support public investment will wither. We miss opportunities to expand our community economic wealth and the downward trend continues downward toward failure. Our community dies a slow death. Eugene falls into a longer recession. Poor planning that would result in prolonging on increasing effects of the recession. Stagnation or worse, things decline further, greater unemployment, families struggle more and we lose hope. People get sick and die. Schools fail. Kids grow up in poverty, there are more homeless folks and ultimately more crime. Community Resource Group October 12, 2010 BEST THE POSSIBLE OUTCOME WHEN WE WORK TOGETHER FOR ECONOMIC DEVELOPMENT OUR LONG TERM PURPOSE We create a near consensus vision resulting in a plan that creates family wage jobs while enhancing the environment and increasing social equity. There are mixed opportunities for jobs growth, and industry growth. There are more livable jobs. We will have more and more desirable jobs. That we develop a vision and plan that acknowledged our best characteristics and specifically recruits and supports businesses that fit the vision of what we want to be. We will figure out how to improve our economy in a way that fits our values. We have a plan that provides varying sizes of commercial and industrial property to meet the needs of growth and new businesses that reflect the community’s values. We can identify what we do want to have and still provide a predictable outcome for the specific site. We finally talk about substance, real general consensus and therefore help inform the city’s process and contribute to a positive and popular decision. All people’s well being is considered in decision making. We will make joint decisions for the greater good…sufficient jobs and higher wages, reduced impacts. We will consider environmental impacts as part of our decisions. We develop a thoughtful plan that takes into account the entire community’s point of view. We look for long term solutions that are good for our community as a whole. We define "good" for our community point system (plan).” That we solve our dynamic issues, that we collectively build a flexible and diverse workforce to build a strong economic foundation that meets the challenge of the triple bottom line that will sustain us through time. We develop an active economic development plan recognizing the growth that is most likely to occur and our commitment to provide good job opportunities for the younger members of our families and young professionals we would like to attract to our community. Policies can be generated which are implemented by the City Council so that planning efforts and visions have a chance of becoming a reality. Collaborative planning brings healthy mixed use redevelopment along transit corridors. We develop a path to a better economic condition without having a negative impact on our quality of life. We generate prosperity so that everyone is better off and we can afford the things we really want in addition (parks, school and environment). Reformation of regulatory procedures results in new policies that welcome economic progress, environmental stewardship and sustainable business practices. This change at the policy level inspires conversation and action that brings historically adverse groups into enthusiastic agreement about how Eugene will welcome and grow jobs. Policy makers develop a strong employment strategy and follow through, always evaluating and changing the strategy. Community Resource Group October 12, 2010 OUR LONG TERM PURPOSE (cont.) We are able to show a united community effort to bring in well paying and socially beneficial large and medium industry while supporting small businesses. New technology and/or large healthcare facilities want to locate here and we have sites for them. This creates jobs and helps transform our community to one with a robust economy and salary averages above national average. Economic Development adds to the aesthetic values of community. We will have an ample amount of land ready for development when a job/income producing firm comes to town with an interest in building a facility here. We re-shape parcels of land and economic policy to make available sites of various sizes shovel ready so that companies vie for a location in Eugene and we have the pick of the litter of business that stay in Eugene forever. We move ahead slowly, with flexibility and open up the UGB only if needs require it. That we end up with sufficient areas of land that are suitably located and can accommodate large, medium and small industry that will provide living wages for families. We identify a “menu” of industrial sites targeting specific industry and add land to the UGB to accommodate it. We expand the UGB within a four year period. We take a “big picture” look at our options and agree on an approach to designating industrial land that makes Eugene competitive in attracting new industry while protecting our valued resources and neighborhoods. There are minimal impacts of industrial uses on neighborhoods. We have clean industries that are good neighbors. We build smaller homes for encouraging more for less on the housing lands and keeping them off and away from industrial lands. Our Class 1 farmland is protected. Recruitment of business minimizes environmental impacts in the long run. Industry that does come here is compatible to Eugene and does not degrade our lifestyle. Seriously, average wages go up and we have a balanced mix of industry that is compatible and sustainable with our current and future vision. That we agree to long term employment and development objectives that help us agree on land use and help us stick to those agreements long term. We attract new business and support existing businesses while responsibly using our natural resources. Everyone will have meaningful work near to where they live and will earn enough to meet basic needs while preserving invaluable resource lands to produce their food, clothing and shelter. Perhaps their work is on those rescued lands providing their own needs! Eugene offers good living wage jobs to a wide spectrum of workers with varied skills. We provide a full portfolio of job opportunities that allow community members to participate in the job market from entry level through a career. Eugene would see the value in higher wage manufacturing jobs, especially for those people without a college degree, and we make sure we had the right mix of available lands to entice businesses to locate to Eugene. As a result Eugene is a vibrant thriving community with low unemployment and ample competitive wages. We are above the national average in median income. We have a diverse, stable economy. Jobs are more inclusive, including those people living below the poverty level and/or on food stamps in the process toward a better future. We all say “remember when there was a United Way?” Community Resource Group October 12, 2010 OUR LONG TERM PURPOSE (cont.) We have attracted and secured high employment industries that are diverse in size, output and market sectors. We attract a good mix of jobs that decreases the housing affordability gap (or eliminates it.). We do this by developing jobs and industries that are consistent with our shared values and that ensure a high quality of life. They take an active role in the community and provide career advancement to their employees. We develop and attract a strong base of clean, green industry employers to raise our economic profile resulting in better paying jobs with good benefits for more people. Clean and green industries come to Eugene. This in turn helps to support and fuel other parts of economy. Clean industry flourishes and is strategically located. The city identifies and cleans up infill brown fields, then markets them to relatively clean industry. They are then developed by a mix of clean industry commercial. The community focuses on and attracts and keeps market driven family wage jobs, resulting in average median income that exceeds state averages. We encourage living wage jobs. New high wage jobs are created by industries. The community sees significant new jobs. Employment comes from mostly local businesses. We create family wage jobs that provide living wages and benefits and which can allow our children to stay and raise a family and service economically. More people have living wage jobs and are able to house and feed their families. Living wage jobs improve and we have the capacity to live, work and play here in our home town. People in Eugene will have jobs and be able to care for their families…with support infrastructure. We have a happy and healthy populace doing interesting and rewarding work, while serving the common good. They are provided ample opportunities to see their families thrive and leaning to an ever increasing improvement in everyone’s standard of living and providing for the less fortunate or able. Eugene becomes known as one of the best places to live and work. We keep and foster new talent and help everyone in our community prosper. We become an inclusive thriving community with ample well paying jobs for all demographics (age, race, etc.) that provides desirable housing and services for all. We will be proud. We keep what we care about. We are sustainable and equitable. Business, government and schools are supported and job growth is sustained over many years. Not only do we have opportunity for existing business to grow and new business to arrive, but we have everyone actually working towards the success of the economy and all the benefits that come from that. Eugene crafts ingenious strategies to be both internationally renowned (in a good attractive way) and yet still affordable for all classes. Residents rate quality of life here in the top 10% of the country. The outcome will provide for the common good. Everyone will get their needs met. The gap between have’s and have not’s will close. Energies will be focused into new areas rather than channeled into conflict. We have reduced poverty. Community Resource Group October 12, 2010