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Local Economic Development Programs Proposed Changes

HB 3011 is up for a public hearing this Tuesday, April 4 at 8:30 a.m. (at the same time as HB 2199, which extends the enterprise zone program). Below is a summary of the proposed changes to the enterprise zone program and the strategic investment program (SIP).

The LOC has not taken a position on HB 3011 yet. LOC members are encouraged to provide feedback on the various pieces of the bill to Lobbyist Lindsay Tenes (ltenes@orcities.org).

Enterprise Zone Changes

  1. Removes retail shipping warehouses from the list of qualified businesses.
  2. Removes property with a floor area ratio that is at least 2,500 square feet per employee as a qualified business in the Portland metro region.
       • Intent is to stop data centers in the Portland metro region from receiving the property tax exemption.
  3. Local governments must adopt a resolution outlining information related to the business agreements, including job creation requirements, infrastructure needs and financing and other incentives or benefits offered to the business.
  4. Adds oversight from Business Oregon to determine whether the business activities in an enterprise zone are adding stress to local infrastructure.
  5. Allows local governments to request help from Business Oregon in negotiating the agreements with business firms.
  6. Cuts the length of the rural enterprise zone property tax exemption from 7-15 years to 8 years.
       • Option to renew for additional 2 years at a 50% exemption.

Strategic Investment Program (SIP) Changes

  1. Numbers 1-5 in the enterprise zone list are also applied to the SIP program in HB 3011.
  2. Cuts length of the property tax exemption from 15 years to 8 years.
       • Option to renew for additional 2 years.
  3. Adds new criteria for revoking property tax exemption for failure to meet job creation and wage requirements for consecutive 18 months.

Statement of Economic Interest

  • Public officials involved in the process of determining agreements in enterprise zones and the SIP must file a Statement of Economic Interest.

REGISTER TO TESTIFY HERE virtually or in person.

SUBMIT WRITTEN TESTIMONY HERE

Contact: Lindsay Tenes, Lobbyist – ltenes@orcities.org

Last Updated 3/31/23

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