A committee formed to find funding for the city’s portion of economic vitality programs will officially present a business license fee plan to the City Council on Monday.

The Downtown and Economic Vitality Plans Implementation Committee has the job of raising money to pay for the Prosperity that Fits plan, designed to build targeted economic prosperity in Corvallis. The committee wrapped up discussions last week.

As proposed, businesses would be charged at least $50 annually and as much as $1,000, depending on the number of employees. People doing business in town, but not based here, would pay a $50 flat rate.

Some outstanding issues remain, including how to charge real estate agents and other workers who do business sporadically in the city. Local realty agents oppose the tax and claim that it will be difficult to enforce on out-of-town agents.

Ultimately, most administrative rules will be investigated by city staffers, who will look into how other cities collect and enforce similar fees.

The council will hold a work session May 12 to discuss details of a business fee before bringing it to its regular meetings later in the month.

As proposed, money collected for the fee must be used strictly for programs outlined by the Prosperity that Fits plan. These include business incubation and support services, promoting growth in specific industries and hiring a business retention specialist to work on behalf of the city.

Beginning in the fall, the group looked into raising hotel room taxes, and imposing a levy on prepared food and entertainment. Members of the hotel and restaurant industry convinced the committee to abandon those plans.

A City Council committee is investigating those options, however, as a way to generate revenue beyond property tax collections.

Also on Monday, the City Council will consider a resolution to form a new commission to evaluate all things associated with downtown: parking, landscaping, land use and planning.

Downtown planning and supervision has been handled by the Downtown Parking Commission and the now-

defunct Downtown and Economic Vitality Plans Implementation Committee.

If the council approves, the new Downtown Commission would take over those duties. It would also advise the council on matters related to a proposed urban renewal zone downtown, as well.

Health annexation hearing scheduled for Monday

County health inspectors declared a health hazard at a south Corvallis property on Crystal Lake Drive caused by a failing septic system.

Two public hearings are scheduled to begin at 7:30 p.m. Monday in the Downtown Fire Station regarding annexing the property and formally removing it from the county rural fire protection zone.

State law requires cities to annex properties that are adjacent to city limits and have immediate access to city sewer and water utilities in order to remove the health hazard.

In March, councilors unanimously approved a resolution bypassing rules requiring voter approval of the annexation and planning commissioners approved a low-density residential zone for the property, paving the way for the city to bring the property into the city limits.

If annexed, the property would be connected to city sewer and water and fall under city fire department jurisdiction.

Matt Neznanski, Corvallis Gazette-Times Matt Neznanski can be reached at 758-9518 or matt.neznanski@lee.net

GT Reader Comments

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magicman wrote on May 4, 2008 10:00 AM: " Wow....charging business for doing business? How much of that nonsense does anyone actually believe is going to benefit our community? So...let's say a Corvallis resident hails a taxi at the Eugene Airport...that Taxi company is going to have to pay $50 dollars a year? What about retail business having their goods delivered? Are their suppliers going to be TAXED for merely sending a delivery vehicle into Corvallis? I believe this proposed taxation, will prove itself completely self-defeating. It will drive small business owners OUT of town, and defeat any amount of revenue it is intended on creating. "

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