HomeMy WebLinkAboutItem 03 Resolution to Expand the Springfield Community Rural Enterprise Zone. AGENDA ITEM SUMMARY Meeting Date: 10/27/2014
Meeting Type: Work Session/Reg. Mtg
Staff Contact/Dept.: John Tamulonis, CMO Staff Phone No: 541-726-3656
Estimated Time: 30 Minutes/20 Minutes
S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Encourage Economic Development and
Revitalization through Community Partnerships
ITEM TITLE: RESOLUTION TO EXPAND THE SPRINGFIELD COMMUNITY RURAL ENTERPRISE ZONE
ACTION REQUESTED:
Adopt/not adopt the following: A RESOLUTION OF SPRINGFIELD
REQUESTING THAT THE SPRINGFIELD COMMUNITY ENTERPRISE
ZONE BE EXPANDED AND AUTHORIZING THE SPRINGFIELD CITY MANAGER TO SUBMIT THIS RESOLUTION TO THE STATE OF
OREGON FOR APPROVAL
ISSUE STATEMENT: The City of Springfield currently carries a Rural Enterprise Zone designation which allows an eligible business firm making a qualifying investment or expansion to
receive a three- to five-year abatement on the property taxes otherwise levied on
new facilities and equipment. Springfield, in partnership with Lane County, is proposing to expand the Springfield Community Rural Enterprise Zone to include
areas in Glenwood, Jasper-Natron, North Gateway, and Goshen (Attachment 2).
ATTACHMENTS: Attachment 1 – Resolution Attachment 2 – Current Zone and Proposed Expansion Areas Attachment 3 – Sample Notice Sent to Local Taxing Districts
DISCUSSION/
FINANCIAL IMPACT:
The current zone does not include all areas, but rather focuses on industrial areas
most likely to appeal to industry within the city limits. As the City looks to the future for developable lands, an amendment to expand the current zone boundary to
include those potential areas would offer incentives to businesses looking to locate.
These areas include parcels both inside and outside the Springfield city limits and within the existing urban growth boundary. This eliminates the step needed for the
State of Oregon to approve modifying the boundary each time land is annexed.
Additionally, as part of the Springfield Enterprise Zone expansion, the City of Springfield and Lane County are proposing a partnership to include the Goshen
area, located south of Glenwood. In June of 2013, Lane County Board of Commissioners adopted the Goshen Regional Employment and Transition (GREAT) Plan to support the development of the unincorporated Goshen
community under urban industrial zoning. The goal is to enhance the economic viability of the region focusing on approximately 300 acres of underutilized industrial land along Interstate-5. Lane County has initiated a number of land use
activities to allow for urban levels of industrial development on this existing rural industrial zoned land in Goshen. The addition of enterprise zone incentives would
greatly help to realize the employment growth potential of Goshen.
While Lane County would be added to the zone as a co-sponsor, the City would still remain zone manager. The addition of a co-sponsor would not change the
process or benefits available to businesses within the enterprise zone.
Should Springfield City Council and the Lane County Board of Commissioners jointly adopt the attached resolution, staff will submit the resolution to the State of
Oregon for approval of the proposed zone boundary expansion.
CITY OF SPRINGFIELD
RESOLUTION NO. _______
A RESOLUTION OF SPRINGFIELD REQUESTING THAT THE SPRINGFIELD COMMUNITY ENTERPRISE ZONE BE EXPANDED AND AUTHORIZING
THE SPRINGFIELD CITY MANAGER TO SUBMIT THIS RESOLUTION TO
THE STATE OF OREGON FOR APPROVAL
WHEREAS, the City of Springfield sponsors the Springfield Community Enterprise Zone more particularly described and set forth in Exhibit A; and
WHEREAS, the Enterprise Zone is one of the most successful economic development
tools for the City of Springfield, contributing to the establishment and expansion of
diverse businesses and the creation of family wage jobs; and
WHEREAS, the Enterprise Zone and the three- to five-year property tax exemption that
it offers for new investments in plant and equipment by eligible business firms are critical
elements of local efforts to increase employment opportunities, to raise local incomes, to
attract investments by new and existing businesses and to secure and diversify the local
economic base; and
WHEREAS, Lane County is currently not a sponsoring government of the Springfield Community Enterprise Zone; this proposed change in the zone boundary includes areas
within the jurisdiction of Lane County, and Lane County is requesting to join the
Springfield Community Enterprise Zone as a cosponsor; and
WHEREAS, officials of the City of Springfield and Lane County are agreed in requesting a change in the boundary of the Springfield Community Enterprise Zone that
would add the areas indicated in the attached Exhibit A and legal description (Exhibit B),
such that the amended Enterprise Zone would be configured according to the attached
map and description (Exhibits C & D); and
WHEREAS, special notification was sent to all affected taxing districts which could be impacted by the proposed change in zone boundary; and
WHEREAS, the Council finds that such designation will provide additional financial/tax
incentive for qualified business firms engaging in electronic commerce;
NOW THEREFORE, BE IT RESOLVED THAT:
1. The City of Springfield requests a change in the boundary of the Springfield Community Enterprise Zone as shown in the attached maps and legal descriptions
(Exhibits C & D); and
Attachment 1, Page 1 of 2
2. The City of Springfield requests that Lane County be added to the Springfield
Community Enterprise Zone as a cosponsor of the zone; and
3. The City Manager is hereby authorized to prepare and submit technical memoranda to the Business Oregon, along with this resolution and other necessary
documents, verifying that the requested boundary change to the Springfield Community
Enterprise Zone complies with the requirement of ORS 285C.115, so that the request
herein may be approved by order of the department’s Director; and
3. This Resolution shall take effect upon its adoption by the Council and approval by
the Mayor.
ADOPTED by the Common Council of the City of Springfield this 27th day of October
2014 with a vote of _____ for and _____ against.
______________________________
Christine L. Lundberg
Mayor
ATTEST:
_______________________ Amy Sowa
City Recorder
Attachment 1, Page 2 of 2
ATTACHMENT 1 PAGE 1 of 1
Sample Notice to Local Taxing District About
Enterprise Zone Boundary Change
{OAR 123-065-0330 & 123-065-1050}
[DATE]
Contact Person
Affected Agency
Address
Address
Re: Expansion of the Springfield Enterprise Zone
Dear _____________________:
This letter would inform you of the exciting opportunity available to our region for improving the local economic
base, business climate and long-run community development. The City of Springfield and Lane County are seeking
to add areas of North Gateway, Jasper-Natron, Glenwood, and Goshen to the Springfield Rural Enterprise Zone
(which Lane County would also join as a cosponsor). The boundary change request will be submitted to Business
Oregon for approval.
At a joint public hearing on October 27th, 2014 at 5:30 pm in the Jesse Maine Meeting Room at 225 Fifth Street,
Springfield OR 97477, the City Council and Lane County Board of Commissioners are expected to consider a
resolution requesting boundary amendment.
The current Springfield Rural Enterprise Zone or proposed areas to be added include relevant tax codes, such that
the zones could affect future property tax collections in your district. Therefore, you are being asked to comment on
this proposal, either at the hearing or by sending comments directly to me at jtamulonis@springfield-or.gov or by
phone, no later than October 10th, 2014.
Please understand that an enterprise zone exempts only new property that a job-creating business might build or
install in the enterprise zone at some future time. In addition, an enterprise zone exemption is temporary, usually
lasting only three years, after which time the property induced by these incentives is available for assessment. An
extension to four or five years in total is possible in some cases. As Springfield’s Zone is a Rural Enterprise Zone,
longer-term incentives might be available, but only if our county meets certain economic criteria; these longer-term
incentives also may include a tax credit, which triggers annual payments to local taxing districts by the state
government. Both the extension and the long-term incentives need approval from the local city/county that sponsor
the Springfield Rural Enterprise Zone.
Finally, none of these property tax exemptions would be available to just any business. Most commercial/retail
operations would not be eligible. Rather, the primary beneficiaries of enterprise zone benefits are manufacturing
and other more industrially oriented facilities serving other businesses.
Feel free to contact me with any questions or comments: Email – jtamulonis@springfield-or.gov, Phone –
(541)726-3656.
Sincerely,
John Tamulonis
Community Development Manager
City of Springfield
ATTACHMENT 3 PAGE 1 of 1