HomeMy WebLinkAboutResolution 02-60 12/09/2002
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ATTACHMENT I
RESOLUTION NO. 02-60
A RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN AGREEMENTS
WITH LANE COUNTY AND THE SYMANTEC CORPORATION TO MODIFY THE
REQUIRED MINIMUM AVERAGE ANNUAL EMPLOYMENT LEVEL AND EXTEND THE
PROPERTY TAX EXEMPTION TWO YEARS FOR A TECHNICAL SUPPORT
CUSTOMER SERVICE CENTER IN THE GATEWAY AREA.
WHEREAS, the Springfield Enterprise Zone II is jointly sponsored by the City of
Springfield and Lane County through resolutions approved by each of the governing
bodies;
WHEREAS, Symantec has filed a precertification application form with the Springfield
Enterprise Zone Manager;
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WHEREAS, Symantec will negotiate a First Source agreement with the Oregon
Employment Division for referring qualified candidates to Symantec for new job openings
within the Springfield Enterprise Zone until the end of the exemption period;
WHEREAS Symantec is required to pay the first year's property taxes because the
firm did not file in April 2002 for the Enterprise Zone benefits for the Tax Year 2002.
WHEREAS, because Symantec remains eligible to file for Enterprise Zone benefits
under OAR 123-065-4690 Post Deadline Filing for Exemption Net of First Year and
remains eligiblefor the remainder of an exemption, and by signing and agreement for
the conditions outlined below and becoming precertified, Symantec must submit the
application for exemption on or before December 31,2002 and thus complying with the
late fjljng deadline of December 31, 2002 as provided in OAR 123-065-4690 (1) and (2);
WHEREAS, Symantec completed construction of its technical support customer
service center in December 2001 and it includes qualified property costing over $25
million;
WHEREAS As the governing body of the local sponsor of the Springfield Enterprise
Zone II, the Springfield City Council can specify by resolution alternative requirements
for Symantec to meet to qualify for the regular and extended enterprise zone benefits as
follows:
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(a) Should Symantec's full-time average monthly employment level drop
below a 'floor' of 460 full-time employees at any time during the five-year period
starting January 1, 2002, Symantec's EZ eligibility and any future eligibility for the
current Symantec investment in the Springfield Enterprise Zone II will be
terminated at that time under these sponsor-approved specific conditions.
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(b) During years 2 and 3, if Symantec attains an annual average of 525 full-
time employees, Symantec will make additional in-lieu-of-tax payments to each
of the sponsors that are 75% of those payments specified as required in years 4
and 5, these are respectively $131,250 to the City of Springfield and $32,812 to
Lane County. Should Symantec not attain an annual average of 525 full-time
employees for either year 2 or year 3, Symantec will make an in-lieu-of-tax
payment equivalent to the full property tax on the EZ-eligible property that would
have been assessed by the Lane County Tax Assessor in that tax year. This
payment allows Symantec to remain eligible for Springfield Enterprise Zone II
benefits and shall go to Lane County and be distributed by Lane County to the
respective taxing agencies in the Tax Area Code applicable to Symantec's
Springfield facility.
(c) The original provisions with regards to payments to each sponsor in years
4 and 5 of the extended enterprise zone as approved by the joint sponsors (the
Springfield City Council on October 15, 2001 and the Lane County Board of
Commissioners on November 20, 2001) and will remain in effect as will a
payment to Willamalane Parks District for a skate park of $25,000 now to be
made prior to June 30, 2003.
WHEREAS, Symantec could receive a property tax exemption under ORS 285
because it is an eligible business firm, and
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WHEREAS, Symantec agrees
(a) to compensate during the entire enterprise zone tax exemption period all
new employees at an average rate of not less than 150 percent ($40,832) of Lane
County's prevailing average annual wage ($26,921) at the time of applying for
precertification; and
(b) to have full-time employment levels at or above 460 at all times during the
EZ exemption period to retain Symantec's eligibility for EZ benefits and
(c) to meet any additional requirements that the zone sponsors may reasonably
request, including but not limited to the Symantec's attaining an annual average of
525 full-time employees throughout the regular and extended EZ exemption
periods so it may receive EZ benefits; paying the City of Springfield $131,250 and
Lane County $32,812 in year 2 and in year 3 of the regular Enterprise Zone
benefit period; and paying the City of Springfield $175,000 in each of two years of
extended Enterprise Zone benefits for the provision of additional Police, Fire and
Life Safety, and other services and pay Lane County $43,750.in each of two years
of extended Enterprise Zone benefits; and
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WHEREAS, the Springfield City Council would like to encourage investment in new
Springfield manufacturing and high technology facilities, increase both the number of
family wage jobs and the wages paid to its citizens in new economic sectors, assist in
the diversification of manufacturing and high technology in the local economy, ensure
competitiveness of future Springfield businesses, and provide support for the long-term
operation of Symantec 's Springfield facilities.
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NOW THEREFORE, BE IT RESOLVED by the Common Council of the City of
Springfield as follows:
1. The Springfield City Council, as the governing body of one of the sponsors
of the Springfield Enterprise Zone II, approves extending the property tax
benefits of the Springfield Enterprise Zone for two years to the Symantec, as
requested in Exhibit "A" and incorporated herein by reference, for a $35.899
million project, and
2. Authorizes the City Manager to negotiate, as necessary, and sign
agreements with Lane County, the co-sponsor of the Springfield Enterprise
Zone II, and Symantec to the terms described herein, including any
reasonable modifications of these terms, and provided that Symantec
meets the terms of ORS 285.
Council President
ADOPTED by the Common Council and approved by the Mayor of the City of
Springfield, this 9th day of December, 2002.
Adopted by a vote of ~ for and -L against.
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Co~ncil President
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. City Recor~
i:'c.\!lEWED & APPROVED
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OFFICE OF CITY ATTORNEY
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