It was one of the hottest debates in 2004: Should Eugene resume giving property tax breaks to industries in West Eugene? Should there be limitations on the amount that can be received? Does it really make a difference?
The primary purpose of the Zone is to stimulate new investments through tax break incentives, thereby creating jobs and new income in the community. The primary concern was determining which companies should be eligible and how much should be waived. If the city and county didn't decide on specifics within a certain timeframe, then the qualifications and incentives would default to the state's requirements.
In the end, it was determined that the city and county would offer the maximum tax breaks allowed by state law - up to $96,000 in property taxes would be waived over three years for each new job. Even if a company becomes eligible for the tax breaks, it will still be required to file every year in order to ensure that it's continuing to meet eligibility requirements, and to quantify the quality of jobs offered at the company. The Public Benefit Criteria were designed by the city to reward companies for creating jobs with higher than average wages and benefits. If the company fails to meet a certain level of Public Benefit, then it will be required to make a public benefit contribution to the community, essentially giving back some of what the company received as a tax credit.
So who qualifies? Businesses within the boundaries of the enterprise zone planning significant new investment in additional real property and/or personal property and who will increase their number of employees by 10% or one person, whichever is more, are potentially eligible. However, applications must be submitted prior to commencing new construction, modifications or additions to a building. Investment in new machinery or equipment may also qualify.
It may seem like a lot of paperwork to muddle through for a small business owner with limited time and resources, but Imagine Graphics Vice President Erika Leaf assures small businesses that it is possible.
"The city really makes it do-able for small businesses to apply for the tax credit too," explained Erika. "The city's Community Development analyst, Denny Braud, has been great to work with. Whenever I had questions, he was very responsive and helpful."
See which businesses are in the Zone: EnterpriseZoneMap
For application information or help, please visit the City of Eugene's Community Development website: WestEugeneEnterpriseZone
Take the challenge! Does your business operate within the west Eugene enterprise zone and is currently receiving the tax benefits? We'd like an update. Please take our short Survey and let us know if it's helped your business!
Chamber Membership Pays Dividends in Difficult Economic Times
Monday, December 1, 2008 by
Dave Hauser
There is no doubt that we are facing difficult economic times. Financial systems in flux, global economic performance in a shaky state and the rising costs of raw materials are all forcing people to make tough choices.
Faced with the current “economic crunch,” those in business naturally are evaluating expenditures and working to make the most prudent decisions for vitality and sustainability.
Regardless of business size or industry sector, one key to success in a soft economy is a chamber of commerce membership.
In the past, chambers have been viewed mostly as socializing bodies where businesspeople come together to network. Although still a valuable networking venue, today’s chamber is much more. In every arena — business advocacy, economic and community development, education and work-force development — chambers fight for business interests to ensure there is an environment in which they can thrive.
The impact that local chambers have on business also includes increased consumer confidence and patronage. The Shapiro Group, an Atlanta-based research firm, recently surveyed 2,000 Americans and found that chamber membership causes consumers to see a business in a more positive light and increases the likelihood that they will shop or purchase services from member businesses.
Although these figures vary slightly depending on the size of organization and the industry sector, the fact remains that businesses that are members of their local chamber garner greater consumer credibility, trust, and loyalty than those that are not affiliated. Taking this notion a step further, the study found that the greater the level of involvement of the company in the local chamber (such as serving on the board, sponsoring events, etc.), the greater the benefits.
For a business that is highly involved with its local chamber, consumers are 12 percent more likely to think that its products stack up better against its competition and 19 percent are more likely to think favorably of the company in general. Using the restaurant industry as an example — an industry that is particularly vulnerable in a soft economy — the impact of chamber membership is evident. The Shapiro study revealed that, for chain restaurants, patronage frequency, favorability and purchase intent all relate directly to involvement in the local chamber of commerce. When consumers know that a restaurant franchise is a member of the chamber of commerce they are:
• 50 percent more likely to eat at the franchise more often;
• 25 percent more likely to think favorably of the franchise;
• 40 percent more likely to eat at the franchise in the next few months.
Among those who already know about a particular restaurant, the added awareness that it is a chamber member, yields 38 percent of customers being more likely to patronize the establishment in the next few months.
Among those with little or no knowledge of the establishment, chamber membership increases the likelihood of patronage to 76 percent.
Similar results were garnered in analyses of insurance companies and automobile manufacturers.
Small business is the backbone of America and represents the bulk of chamber memberships. The results for this segment are particularly striking.
If a person knows that a small business is a member of the local chamber, the business will see a 44 percent increase in consumer favorability ratings, a 51 percent increase in consumer awareness and a 63 percent increase in the likelihood of patronage.
With belt-tightening being the norm, it is important to note that wage earners at all levels expressed greater confidence, awareness and patronage likelihood.
People with annual incomes of $20,000 to $40,000 stated that they are 64 percent more likely to patronize chamber members. Those earning $60,000 to $80,000 are 86 percent more likely, and those earning more than $100,000 per year are 77 percent more likely to purchase goods and services from chamber-affiliated businesses. This competitive edge is also evident by region, age and gender.
Finally, there are two keys to receiving the benefits of local chamber membership.
First, a business has to be a member. Second, businesses must work internally and with their local chamber to make customers and potential customers aware of their affiliation.
In short, membership in the local chamber of commerce is not a luxury item.
It is an absolute necessity for all businesses seeking to navigate difficult economic waters.
Get involved today and ensure your future.
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