EUGENE, Ore. - The Eugene City Council is weighing whether to grant an additional tax exemption to Avago Technologies. Avago purchased the old Hynix facility in November, and proposes a $400 million investment to rejuvenate the facility.

The property is located in the West Eugene Enterprise Zone. The Zone, designated in 2005, is sponsored by the City and the County to encourage "new investment, diversification, and competitiveness."

Being "in the Zone," Avago is automatically eligible for a standard three-year tax exemption. If it meets state standards, its request for the three-year exemption must be approved.

That's where the City Council comes in.

Avago can, and has, requested an additional two years of tax-exemption, bringing the total to five. The Council will consider and decide on that request. Based on a $400 million investment, a three-year tax exemption is estimated to be worth $14 million. With five years, that estimate grows to $21 million.

To get the extension, a business must give all new employees an average wage at least 150 percent of the county's average wage.

At today's work session, councilors George Brown and Betty Taylor expressed reluctance to support a five-year exemption.

Avago is projected to hire more than 200 people at first. Mayor Kitty Piercy wanted councilors to keep those economic benefits in mind. "If there's one thing I've heard from people over and over again, they want us paying attention to jobs," she says. "They want us paying attention to underemployment, and unemployment. They want us to put that at the top of the list."

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