HomeMy WebLinkAboutResolution 2018-29 11/05/2018 CITY OF SPRINGFIELD,OREGON
RESOLUTION NO. 2018-29
RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN AGREEMENTS
WITH LANE COUNTY AND RUSH CREEK HOLDINGS, LLC D/B/A UMPQUA
DAIRY PRODUCTS TO APPROVE A THREE-YEAR ENTERPRISE ZONE PROPERTY
TAX EXEMPTION AND TO EXTEND THE ENTERPRISE ZONE PROPERTY TAX
EXEMPTION AN ADDTTfIONAL TWO YEARS FOR A TOTAL OF FIVE YEARS FOR
AN INVESTMENT IN ITS NEW SPRINGFIELD SITE AND FACILITY
WHEREAS, the City of Springfield would like to encourage investment in Springfield
manufacturing and high technology facilities and has identified the food and beverage
sector as a target sector;
WHEREAS, the City of Springfield and Lane County established and are the sponsors of
the Springfield Community Enterprise Zone;
WHEREAS, the Rush Creek Holdings, LLC d/b/a Umpqua Dairy Products Co. (Umpqua
Dairy) is locating in the Springfield Community Enterprise Zone and is an eligible
j business under Oregon Enterprise Zone statutes;
WHEREAS, Umpqua Dairy plans to make a $1.8 million capital investment in a new
Springfield facility and anticipates it will complete construction of the project in 2019;
WHEREAS, Umpqua Dairy has applied for an Enterprise Zone property tax exemption
for a total of 5 years;
WHEREAS, as part of its application Umpqua Dairy agrees to execute an agreement
with the sponsors of the Springfield Community Enterprise Zone consistent with this
JResolution; to comply with all applicable requirements of Oregon's Enterprise Zone
statutes and reasonable requests from the Springfield Community Enterprise Zone
sponsors;
WHEREAS, the agreement with the sponsors will include a commitment from Umpqua
Dairy to compensate during the entire enterprise zone tax exemption period all new
employees at an average rate of not less than 150 percent ($62,285) of Lane County's
prevailing average annual wage ($41,523) at the time of applying for authorization;
WHEREAS, Umpqua Dairy will negotiate a First Source agreement with the Oregon
Employment Division for referring qualified candidates to Umpqua Dairy for new job
openings within the Springfield Community Enterprise Zone until the end of the five-year
exemption period;
1 WHEREAS, the Springfield City Council desires to increase both the number of family
wage jobs and the wages paid to its citizens in new and existing economic sectors,
assist in the diversification of manufacturing and high technology in the local economy,
1 ensure competitiveness of future Springfield businesses, and provide for the long-term
operation of existing employers like Umpqua Dairy;
i
NOW,THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF
SPRINGFIELD:
Section 1: The Springfield City Council, as the governing body of one of the
sponsors of the Springfield Community Enterprise Zone, approves the three-year
Enterprise Zone abatement and extending the property tax benefits of the
Springfield Community Enterprise Zone for an additional two years to Umpqua
Dairy, as requested in Exhibit A and incorporated herein by reference, for a
proposed $1.8 million investment in its new Springfield facility, adding building
square footage and machinery and equipment;
Section 2: Umpqua Dairy through a signed agreement with the sponsors
must meet the terms outlined below:
a. Invest approximately $1.8 million in enterprise zone eligible
equipment and buildings in the Springfield plant;
b. Pay all its new employees, on average, compensation that will
exceed the 150% of the Lane County average annual wage where
the most recent data on prevailing Lane County average annual
wage at the time of applying for authorization was $41,523 and
150% of that figure is $62,285;
C. Enter into a first-source agreement with the Oregon Employment
Division effective with approval of the enterprise zone
authorization until the end of the five-year extended enterprise
zone abatement period; and
d. Maintain a mandatory minimum level of full-time employees equal
to or greater than 110% of its annual average full-time
employment of 19 at the time of authorization application at all
times during the time from the authorization application until the
end of the Enterprise Zone Exemption Period; and
e. Pay to the City of Springfield $8,500 in $1,700 annual installments
to be paid by July 1� in each year of the five-years of Enterprise
Zone Exemption as a reasonable offset to general government
agencies to support ongoing administration of economic
development efforts, including enterprise zone management.
Section 3: The City Manager is authorized to sign agreements with Lane
County and Umpqua Dairy including but not limited to the terms described herein
provided that Umpqua Diary meets the terms of ORS Chapter 285C;
Section 4: The City Manager is authorized to take appropriate action to
facilitate the extension of the Property Tax Exemption as described herein;
RESOLUTION NO. 2018-29
Section 5: This Resolution shall take effect upon adoption by the Council and
approval by the Mayor.
ADOPTED by the Common Council and approved by the Mayor of the City of
Springfield, this 5th day of November 2018.
Adopted by a vote of t for and 0 against.
Mayor
REVIEWED&APPROVED
ATTEST: AS- .FOR
ATE: . I.
OFFICE OF CITY ATTORNEY
City Ro der
RESOLUTION NO. 2018-29