Gresham City Council OKs investment zone

Officials try to draw development to area

By Shannon Wells

The Gresham Outlook, Dec 3, 2008, Updated Oct 30, 2009

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The Gresham City Council approved the creation of a 500-acre Strategic Investment Zone, the first of its kind in Oregon, at its Nov. 13 meeting.

The zone is bounded by Northeast Glisan Street to the north and 242nd Drive to the east. Roughly divided by Northeast 223rd Avenue, parts of the zone adjacent to residential areas extend south to Southeast Stark Street.

Here’s how it works: When an eligible company locates within the zone, it pays property taxes on the first $100 million value of the improvements, while the value above $100 million is abated for 15 years. The company also pays a community service fee equal to 25 percent of taxes it would otherwise have owed, up to $2 million per year.

When a company’s investment exceeds $750 million, additional payments are required. The company must also enter into a “first source hiring agreement” to encourage hiring people from the local area. The program also allows 50 percent of the personal income tax payments paid by employees of the company receiving zone benefits to return to local jurisdictions.

Mayor Shane Bemis said this is an encouraging development for the city’s business climate.

“The value of creating this tool can’t be underestimated,” he said. “The types of companies attracted by the zone have a high level of capital investment, they provide needed employment for our local workforce at generally higher than average wages and they have a positive ripple effect through the local economy.”

Gresham entered into an Intergovernmental Agreement with Multnomah County to create the zone, based on state law that requires a county where a zone would be located to request permission to create a zone from the Oregon Economic and Community Development Commission. The zone request will now go to the commission for final approval.

Ted Wheeler, county chairman, praised the development.

“With the enormous economic challenges we’re facing, it’s crucial that we actively support every economic development opportunity we can,” he said. “We can play a vital collaborative role in encouraging business development and creating a climate for good jobs. The creation of Gresham’s Strategic Investment Zone is good policy and good business for both the county and the city.”