HomeMy WebLinkAboutItem 15 Spfd Comm. Enterprise Zone Redesignation AGENDA ITEM SUMMARY Meeting Date: 6/7/2021
Meeting Type: Regular Meeting
Staff Contact/Dept.: Courtney Griesel/CMO
Staff Phone No: 541-726-3700
Estimated Time: 15 Minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Encourage Economic
Development and
Revitalization through
Community Partnerships
ITEM TITLE: SPRINGFIELD COMMUNITY ENTERPRISE ZONE REDESIGNATION
RESOLUTION
ACTION
REQUESTED:
Adopt/not adopt: A RESOLUTION REQUESTING THE SPRINGFIELD
COMMUNITY ENTERPRISE ZONE BE REDESIGNATED AND
AUTHORIZING THE SPRINGFIELD CITY MANAGER TO SUBMIT THIS
RESOLUTION TO THE STATE OF OREGON FOR APPROVAL
ISSUE
STATEMENT:
The current Springfield Community Enterprise Zone program has been in place
since 2014 (est. 2011, boundary amendment 2014) and is set to sunset on June 30,
2021. Over the past 15 years, the Springfield Community Enterprise Zone has
supported 17 companies and 19 substantial property and employment investments
within the community. The City of Springfield must authorize by resolution and
reapply for a new Enterprise Zone on or before July 1, 2021 to continue use of the
business retention, expansion and recruitment tool.
ATTACHMENTS: Attachment 1 – Draft Enterprise Zone Resolution
Attachment 2 – Proposed Draft Redesignation Boundary
DISCUSSION/
FINANCIAL
IMPACT:
The Springfield Community Enterprise Zone is an authorized program by the State.
The program allows a local municipality to provide short term (three or five year)
tax exemption of new investments made by a primarily traded-sector company
within a zone. Investments must be new to the zone, in the category of property
improvements and/or taxable large equipment, in the theme of providing goods and
services outside the region and include addition of new permanent jobs within the
zone. The program does not allow exemption of values already on the tax rolls.
Springfield’s zone will sunset on June 30, 2021, requiring the passing of a Council
resolution to reapply for redesignate a new, urban, Springfield Community
Enterprise Zone. This new zone, reflecting approximately 9.7 square miles of area
inside the city limits, would go into effect on July 1, 2021 and remain in effect
through 2031. The proposed boundary also anticipates approximately 1.5 square
miles of future areas within the urban growth boundary which might be annexed
and ensures adequate capacity remains to amend the zone boundary for inclusion.
The maximum allowed size of an urban enterprise zone is 12 square miles.
As part of this designation, staff have:
• Provided a proposed zone boundary, which includes April Council
guidance and meets the State’s requirements,
• Engaged all affected taxing agencies through either written and verbal
opportunities, and
• Engaged the State of Oregon for ongoing guidance and meeting of criteria.
The zone boundary (attachment 2) will be formally submitted for approval by the
State after adoption of the resolution by the City Council. The City Council may
further amend and modify the zone and boundary after the designation. As
discussed in the April City Council work session, the evaluation and consideration
for further amendment may occur as early as Fall 2021 and consider additional
program requirements, including a hotel/hospitality zone.
{00019891:1} PAGE 1 of 2
CITY OF SPRINGFIELD, OREGON
RESOLUTION NO. ___________
A RESOLUTION OF THE CITY OF SPRINGFIELD REQUESTING THAT THE SPRINGFIELD
COMMUNITY ENTERPRISE ZONE BE REDESIGNATED AND AUTHORIZING THE
SPRINGFIELD CITY MANAGER TO SUBMIT THS RESOLUTION TO THE STATE OF OREGON
FOR APPROVAL
WHEREAS, the Oregon Enterprise Zone Act, ORS 285C.045 to 285C.250, authorizes the designation of
Enterprise Zones, and provides for property tax abatement, permanent job creation, and local
municipal incentives to stimulate economic development in an economically disadvantaged area;
WHEREAS, the current Springfield Community Enterprise Zone designated in 2014, expires June 30,
2021; WHEREAS, the Enterprise Zone program is one of the most successful economic development
tools for the City of Springfield, contributing to the expansion and establishment of diverse businesses
and the creation of family wage jobs;
WHEREAS, the Enterprise Zone and the three- to five-year property tax exemption that it offers for
new investments in plant and equipment by eligible business firms are critical elements of local efforts
to increase employment opportunities, to raise local incomes, to attract investments by new and
existing businesses and to secure and diversify the local economic base;
WHEREAS, the Springfield Community Enterprise Zone is in an area that meets the requirements in
ORS 285C.090(1), will have a total area of no more than 12 square miles in compliance with ORS
285C.090(2), and is not longer than 12 linear miles as the greatest distance between two points within
the zone as required in ORS 285C.090(3);
WHEREAS, the City has consulted with all affected taxing districts as required under ORS 285C.067
and a public meeting with the affected local taxing districts was held on May 28, 2021;
WHEREAS, designation of the Springfield Community Enterprise Zone does not grant or imply
permission to develop land inside the zone without complying with jurisdictional zoning, regulatory and
permitting processes and restrictions; nor does it indicate any intent to alter those processes or
restrictions, except as otherwise done in accordance with Comprehensive Plans as acknowledged by
the State of Oregon Land Conservation and Development Commission; and
WHEREAS, the Council finds that such redesignation will provide additional financial/tax incentive for
qualified business firms engaging in traded and electronic commerce,
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE CITY OF
SPRINGFIELD:
Section 1: The Common Council of the City of Springfield requests the area shown in the
map attached hereto as Exhibit A, be designated by the Director of the Oregon Business Development
Department as an Enterprise Zone pursuant to ORS 285C.065(3).
Section 2: The City Manager is hereby authorized to submit an application to on behalf of
the City to the State of Oregon for re-designation of the Springfield Community Enterprise Zone and
appoints the City of Springfield Economic Development Manager, Courtney Griesel, to continue as zone
Attachment 1, Page 1 of 2
{00019891:1} PAGE 2 of 2
manager of the re-designated Springfield Community Enterprise Zone.
Section 3: The City will comply with ORS 285C.105 and will fulfill its duties as Enterprise
Zone under ORS 285C.050 to 285C.250 including processing applications, managing compliance,
managing local public benefit requirements, and completing all required documentation.
Section 4: This Resolution shall take effect upon its adoption by the Council.
ADOPTED by the Common Council of the City of Springfield this ___ day of _________, ____,
by a vote of _____ for and ____ against.
ATTEST:
__________________________
City Recorder
Attachment 1, Page 2 of 2
Attachment 2, Page 1 of 1