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The Oregon Administrative Rules contain OARs filed through May 15, 2016
 
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OREGON BUSINESS DEVELOPMENT DEPARTMENT

 

DIVISION 668

LOCAL ENTERPRISE ZONE SPONSORSHIP

123-668-0001

Purpose and Scope

This division of administrative rules provides guidance and parameters applicable to:

(1) Selected issues regarding how the local sponsor operates and controls an enterprise zone, including with respect to business tax incentives (primarily for the standard property tax exemption as addressed in OAR 123-674); and

(2) Any situation provided by law, under which the local government or governments that sponsor an enterprise zone may (jointly) impose additional requirements or conditions on a business firm for receiving tax benefits associated with an investment in the enterprise zone.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.050 - 285C.250
Hist.: OBDD 26-2010, f. & cert. ef. 6-14-10; OBDD 13-2015, f. & cert. ef. 11-12-15

123-668-0100

Sponsor of a Zone

OAR 123-001 (Procedural Rules) contains definitions used in this division of administrative rules unless the context demands otherwise. In addition, as used in ORS 285C.050 to 285C.250:

(1) “Sponsor” or “zone sponsor” includes the single city, port or county, or the cities, ports or counties, or any combination of these, collectively, as described in OAR 123-650 that:

(a) Most recently designated or re-designated the enterprise zone under ORS 285C.065 or 285C.250; or

(b) Joined the zone with a change to the zone boundary under ORS 285C.115.

(2) Sponsor also refers to:

(a) The tribal government and any city, port or county cosponsor of a reservation enterprise zone or a reservation partnership zone under ORS 285C.306 (see OAR 123-656).

(b) The county, multiple counties or city that sought designation of a rural renewable energy development zone under ORS 285C.353 (see OAR 123-680).

(3) Depending on the particular context, “a sponsor” or “a zone sponsor” may refer to a single sponsoring entity or “cosponsor” of the enterprise zone included in section (1) or (2) of this rule. Such reference neither supersedes nor interferes with ORS 285C.105(2), which compels all cosponsors to act jointly in fulfilling the duties of the zone sponsor and in taking any action with respect to the zone, with the exception of:

(a) Restriction on hotel/resort eligibility by a city or county at designation, in joining with boundary change or partial revocation, consistent with OAR 123-650-4800(2)(e) and (3); or

(b) Provision of local incentives as described in OAR 123-668-1300.

(4) The zone sponsor does not include and is not any city, port or county that simply consented to having part of its territory contained in the zone as described in OAR 123-650-0500.

Stat. Auth.: ORS 285A.075, 285C.060(1) & 285C.370
Stats. Implemented: ORS 285C.050 - 285C.250, 285C.320 & 285C.353
Hist.: OBDD 26-2010, f. & cert. ef. 6-14-10; OBDD 13-2015, f. & cert. ef. 11-12-15

Duties and Options

123-668-1000

Local Zone Manager

For purposes of ORS 285C.105(1)(a):

(1) The sponsor of an enterprise zone shall appoint and maintain a local zone manager, though not necessarily by resolution, which must be done no more than 90 days after the zone’s re-/designation if one was not appointed through the documentation submitted under ORS 285C.074.

(2) The sponsor or a particular cosponsor may delegate the authority to appoint the local zone manager to a person or body including but not limited to the current local zone manager.

(3) The sponsor may make appointment of a local zone manager by way of an established position at a local agency or organization, whether public or private, as opposed to a named person.

(4) The sponsor may appoint up to but not more than two persons to serve as local co-managers of the zone, which may not be treated as officially bifurcating the zone in any way.

(5) Except as explicitly proscribed by the zone sponsor, the local zone manager shall act as the agent and representative of the enterprise zone in regard to any and all ministerial, intergovernmental, technical or promotional functions of the zone sponsor.

(6) The local zone manager may be empowered by and on behalf of the zone sponsor or a cosponsor to make discretionary decisions or enter into agreements, for which the law does not stipulate adoption of a resolution by the governing body or bodies of the sponsor.

(7) Whenever a local zone manager is appointed or a new person fills the appointed position, the sponsor needs to give written notice to the Department, the Department of Revenue and the county assessor soon afterwards.

(8) Anyone may serve as local zone manager, but it behooves the sponsor to:

(a) Select a person/position with complementary responsibilities, such as working regularly and locally with eligible business firms; and

(b) Formalize zone manager duties in the person/position’s job description or contract.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.105
Hist.: OBDD 26-2010, f. & cert. ef. 6-14-10; OBDD 13-2015, f. & cert. ef. 11-12-15

123-668-1100

Reports by Sponsor at Beginning and End of an Enterprise Zone

(1) Within six months after re-/designation of any enterprise zone, the zone sponsor shall provide the following information, unless fully completed as part of documentation submitted with re-/designation, to the Department and any other organization deemed appropriate by the sponsor for purposes of ORS 285C.105:

(a) A description and examples of marketing plans, efforts or materials for the zone;

(b) A list, map or other information necessary for identifying publicly owned land or buildings that are available for lease or purchase by an eligible business firm within the zone under ORS 285C.110 according to OAR 123-668-1400;

(c) For an urban zone, indices identifying all land within the zone, which for example, may be accomplished by on-line locator software, and for which specific tax lots or street addresses are needed only for properties at which eligible development may occur;

(d) Description of adopted policies and reasonable requirements that the sponsor will seek to impose under ORS 285C.150, 285C.155, 285C.160 or 285C.203 on authorized business firms, which must also be reported to the county assessor, Department of Revenue, and contact agency for publicly funded job training providers and First Source Hiring Agreements;

(e) Confirmation of having appointed the local zone manager consistent with OAR 123-668-1000; and

(f) The final form of any change in the election or restrictions to allow hotel, motel or destination resorts as eligible business firms in all or certain city or county jurisdictions of the enterprise zones, for which newly adopted resolution(s) are necessary as described in OAR 123-650-4800(2)(e).

(2) The sponsor shall periodically update and repeat the reporting of information described in section (1) of this rule, as applicable or necessary under ORS 285C.105.

(3) Within six months following the termination of an enterprise zone unless re-designated in its entirety, the sponsor of the terminated zone and the county assessor shall jointly submit to the Department of Revenue, Department and contact agency, a complete list of:

(a) The names of all business firms authorized, certified or qualified in the zone at the time of termination and located outside of any currently designated enterprise zone;

(b) The dates of submission and approval for each authorization or certification application;

(c) The anticipated initial first year of each exemption; and

(d) The status of each investment or exemption of the authorized, certified or qualified business firm (for example, “under construction”).

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.060, 285C.070, 285C.105 & 285C.110
Hist.: OBDD 26-2010, f. & cert. ef. 6-14-10; OBDD 13-2015, f. & cert. ef. 11-12-15

123-668-1300

Enhanced Public Services and Other Local Incentives

For purposes of ORS 285C.105(1)(b) and local incentives that an enterprise zone sponsor or cosponsor elects by policy to provide to authorized business firms qualifying for the standard property tax exemption (see OAR 123-674) within its jurisdiction or service territory:

(1) Such local incentives include but are not limited to:

(a) Enhanced availability or efficiency of local public services, such as utilities, transportation access and public safety protection;

(b) Waivers, discounts or credits from local fees, charges, business/license taxes and so forth; or

(c) Regulatory flexibility, expedited/simplified permitting, special zoning designations, exceptions from ordinances, or the like that do not significantly undermine regulations pertaining to health and safety.

(2) Unless clearly stipulated in the sponsor policy as discretionary, any such incentive is binding on that sponsoring government and must be implemented (for example, by ordinance) and made regularly available for any business firm that makes application for authorization on or after the effective date, on which the co/sponsor adopted its policy to provide the incentive.

(3) With respect to any binding incentive, as opposed to one that is discretionary:

(a) It shall be available or provided to any authorized or qualified business firm on an equal basis within that portion of the enterprise zone exclusive to the relevant jurisdiction or service territory, except that a city or county cosponsor may formally differentiate the incentives available to authorized business firms operated as a hotel, motel or destination resort;

(b) The zone sponsor shall actively help such firms to understand, access and use any such incentive;

(c) The Department may recognize it in the context of benefits customarily associated with the enterprise zone for purposes of generally marketing the zone;

(d) That an incentive is generally offered or available to other business firms within the sponsor’s jurisdiction or service territory does not affect its status as binding for purposes of the zone; and

(e) By virtue of the sponsor’s policy for further inducing authorized or qualified business firms at locations inside the enterprise zone under ORS 285C.105(1)(b): Relative exceptions or variance from the normal provision of services, charging of fees, imposition of regulations, etc. are allowable within the zone. In contrast, any discretionary incentive (even if exclusively for qualified business firms in the zone) needs to fully conform to standard implementation of the applicable state or local laws, charters, ordinances or conventions.

(4) For purposes of ORS 285C.245(5), in the case where the zone sponsor proposes one or more new incentives to replace an incentive or incentives that are binding according to this rule, in order to avoid termination of the zone:

(a) “Comparable value” means that the new incentives or incentives, as a whole, need to provide not only an equivalent level of direct financial benefit to business firms, but also exhibit similarity in terms of other factors such as convenience.

(b) In determining whether “reasonable corrections of shortcomings in existing local incentives” are being made, the Department may consider and take into account the extent to which an existing incentive inordinately:

(A) Benefits some or all authorized or qualified firms; or

(B) Burdens local budgetary resources or utility capacity.

(5) A local incentive offered or binding in a cosponsor’s jurisdiction or territory has no bearing on the incentives:

(a) Of any other cosponsor in the same zone; or

(b) That the jurisdiction may offer in another enterprise zone that it also sponsors.

(6) Applicable policies also include but are not limited to any formal proposal for local incentives that was made before October 5, 2015, as part of an application for zone re-/designation or of a request for a boundary change by a cosponsor seeking to join the zone.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.105 & 285C.245
Hist.: OBDD 26-2010, f. & cert. ef. 6-14-10; OBDD 13-2015, f. & cert. ef. 11-12-15

123-668-1400

Locally Available, Public Real Estate

For purposes of ORS 285C.105(1)(g) and 285C.110:

(1) The zone sponsor shall:

(a) Prepare and maintain a list and map of land, buildings and structures within the zone that are:

(A) Owned by any agency on behalf of the state government or by any municipal corporation;

(B) Not in use or officially designated for some public purpose; and

(C) Suitable for an eligible business firm in terms of land use zoning ordinances.

(b) Undertake reasonable efforts to make the real estate identified in subsection (a) of this section available for lease or purchase by authorized or qualified business firms for purposes of the standard exemption on qualified property under ORS 285C.175 (see OAR 123-674).

(2) Except as otherwise precluded under Oregon or federal law/constitutional provisions, such firms are entitled to acquire the real estate identified in section (1) of this rule at a fair market rate/price, subject to the leasing or purchasing firm’s prompt development or redevelopment of the property pursuant to an approved application for authorization.

(3) As used in ORS 285C.110 and for purposes of this rule, “municipal corporation” has the same meaning as found under ORS 294.311, including but not limited to any special or local service district, a people’s utility district or a joint operating agency under ORS 262.005.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.105 & 285C.110
Hist.: OBDD 26-2010, f. & cert. ef. 6-14-10; OBDD 13-2015, f. & cert. ef. 11-12-15

123-668-1600

Funds Derived through an Enterprise Zone

Moneys received by the sponsor from business firms represent a special but publicly accountable resource for the enterprise zone sponsor, which are likely to be substantial in only unusual cases, and include:

(1) As specified in statute or law:

(a) The authorization filing fee under ORS 285C.140(1)(c) consistent with OAR 123-668-1700;

(b) The payback of one year’s tax savings in lieu of disqualification under ORS 285C.240(6), as described in OAR 123-674-6600 to 123-674-6630; or

(c) The distribution to the sponsor and other taxing districts of 30 percent of the corporate income or excise taxes paid by a corporation under ORS 317.131, as addressed in OAR 123-690-8500.

(2) Additional requirements imposed by the sponsor on a business firm, in conformance with OAR 123-668-2000 to 123-668-2500.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.105, 285C.140, 285C.150, 285C.155, 285C.160, 285C.203, 285C.240, 285C.403 & 317.131
Hist.: OBDD 26-2010, f. & cert. ef. 6-14-10; OBDD 13-2015, f. & cert. ef. 11-12-15

123-668-1700

Authorization Filing Fee

For purposes of ORS 285C.140(1)(c):

(1)(a) When applying for authorization under ORS 285C.140, an eligible business firm may be required to pay a fee that the sponsor of the enterprise zone has set, up to the greater of:

(A) $200; or

(B) An amount not exceeding 0.1 percent of the total estimated cost of the firm’s proposed investment in qualified property.

(b) In other words, the amount of the fee may always be as much as $200 for proposed investments of $200,000 or less and 1/1000th of the estimated cost for larger investments, even though sponsors may charge a fee that is less than the maximum allowed.

(2) The sponsor shall uniformly implement the requirement of an authorization filing fee according to a policy in place before receipt of an affected application, though not necessarily through written guidelines if the policy is simply and consistently executed.

(3) Written guidelines, however, are necessary for purposes of section (9) of this rule, or to define factors under which the requirement, waiver or amount of an authorization filing fee may fluctuate, such that the sponsor may vary the fee consistent with section (1) of this rule according to certain criteria or situational factors, such as the size or nature of the eligible business firm or its proposed investment.

(4) Failure by an eligible business firm to pay the required filing fee at the time of the firm’s submitting an application for authorization may be grounds for the local zone manager’s refusal to process it on the sponsor’s behalf.

(5) A zone sponsor that requires an authorization filing fee shall collect payment in U.S. funds with the application for authorization and issue a receipt.

(6) If either the zone sponsor or the county assessor deny the application of an eligible business firm for authorization under ORS 285C.140, the sponsor shall refund any payment of an authorization filing fee in full to the eligible business firm.

(7) If both the zone sponsor and the county assessor have approved an eligible business firm’s application for authorization under ORS 285C.140, neither the zone sponsor nor the county assessor may later deny the eligible business firm’s authorization, qualification or exemption because of failure to receive or collect payment of an authorization filing fee.

(8) If a business firm is denied an exemption under ORS 285C.170 or 285C.175, the zone sponsor is under no obligation to refund any amount of an authorization filing fee that was paid by the business firm, unless the business firm is ineligible under ORS 285C.135 or was otherwise authorized improperly or by mistake.

(9) A sponsor may formally provide that in paying the fee, all eligible business firms applying for authorization are required to commit in writing to later reconcile the fee amount, in the event that the actual cost of qualified property differs from the estimated cost by 25 percent or more, either by receiving a partial refund or by paying the sponsor an additional amount.

Stat. Auth.: ORS 285A.075, 285C.060(1) & 285C.140(1)
Stats. Implemented: ORS 285C.140
Hist.: OBDD 26-2010, f. & cert. ef. 6-14-10; OBDD 13-2015, f. & cert. ef. 11-12-15

Additional and Reasonable Requirements on Business Firms

123-668-2000

Applicable Situations

OAR 123-668-2000 to 123-668-2500 govern the following situations of locally imposed requirements in an enterprise zone:

(1) The written agreement by a certified business firm with the zone sponsor for the long-term rural tax incentive under ORS 285C.403(3)(c) and described in OAR 123-690-2000.

(2) Standard property tax exemption in OAR 123-674 involving:

(a) A written agreement for the extended abatement of four or five consecutive years in total under ORS 285C.160 between the sponsor and an authorized business firm;

(b) Adoption of zone sponsor resolution(s), by which the statutorily required increase in zone employment of the firm is:

(A) Waived under ORS 285C.155 and 285C.200(2), including criteria under ORS 285C.205 as applicable and the sponsor’s requisite setting of a minimum level of employment; or

(B) Deferred under ORS 285C.203; or

(c) A policy and standards adopted by the sponsor of an urban enterprise zone under ORS 285C.150 imposing local conditions on authorized business firms, as addressed in OAR 123-668-2500.

(3) For which the county assessor is excused from any enforcement role unless presented by the sponsor with documentation or evidence of a business firm’s noncompliance and of how that effectively invalidates the firm’s abatement of property taxes.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.105, 285C.150, 285C.155, 285C.160, 285C.203 & 285C.403
Hist.: OBDD 26-2010, f. & cert. ef. 6-14-10; OBDD 13-2015, f. & cert. ef. 11-12-15

123-668-2100

Basic Parameters

For purposes of local, additional requirements imposed by an enterprise zone sponsor:

(1) They shall apply to a qualified business firm’s direct receipt of the tax abatement, only:

(a) With respect to operations inside (or nearby and affected by operations in) the enterprise zone; and

(b) Between the time when:

(A) The firm receives authorization (certification in the case of the long-term rural tax incentives); and

(B) December 31 of the final year when the overall enterprise zone exemption expires. (A zone sponsor, however, might require through contractual agreement, as otherwise permissible by law, that if the business firm were later to shut down its eligible operations in the zone, it would be obligated to pay the sponsor a portion of the tax benefit that the firm had earlier received. For example, this amount might reasonably relate or vary according to how soon permanent stoppage of zone operations occurred after expiration of the exemption.)

(2) Notwithstanding section (1) of this rule, the zone sponsor and the business firm may mutually agree, possibly with certain contingencies, to apply current requirements or provisions of an agreement to future situations described in OAR 123-668-2000.

(3) They shall not require that the eligible business firm’s hiring, recruitment, promotion, training, compensation or treatment of its actual or potential employees, suppliers, contractors or customers be based on:

(a) Those persons’ or businesses’ explicit residency or geographic location, consistent with OP-8236, Oregon Attorney General (April 20, 1995); or

(b) Other legally impermissible criteria.

(4)(a) The consequence of a qualified business firm’s failing to satisfy an additional requirement is not necessarily disqualification or loss of property tax benefits;

(b) If that is the expected consequence, then it behooves the zone sponsor to stipulate as much, especially in the case of any such requirement respective to OAR 123-668-2000(1); and

(c) Pursuant to the agreement, resolution or final supporting documentation:

(A) The firm’s failure may result rather in other penalties or repercussions through breach of contract or as otherwise stipulated; or

(B) The firm might fulfill an alternative requirement to avoid disqualification. (An alternative requirement shall not preclude the firm’s disqualification, if the firm later fails to fulfill the alternative requirement or any other requirement)

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.105, 285C.150, 285C.155, 285C.160 & 285C.403
Hist.: OBDD 26-2010, f. & cert. ef. 6-14-10; OBDD 13-2015, f. & cert. ef. 11-12-15

123-668-2200

Additional to Statutory Provisions

(1) A requirement imposed on a business firm by an enterprise zone sponsor is strictly supplemental to the provisions under applicable statutes or state laws, and it shall neither alter nor undermine their effect or intent.

(2) With respect to the following, as established by relevant state provisions, a requirement may in no way:

(a) Affect the basic eligibility or ineligibility of certain business activities or uses of relevant property;

(b) Modify any specified minimum level of investment by the firm; or

(c) Alter the coverage, extent, period or any other direct aspect of tax benefits, although:

(A) Alternative types of payment or financial contributions by the firm are possible; and

(B) The sponsor shall set the total period of tax benefit as provided by the relevant law or statute.

(3) The requirements may neither modify nor in any way effectively decrease or increase the stringency of state requirements for hiring, general employment levels or average pay/compensation associated with jobs or persons employed by the firm, and they shall not even address such issues, except for local requirements that:

(a) Deal with employment other than what is affected or covered by the relevant state requirement (for example, construction or temporary workers, part-time employees, or remuneration in a Portland-area urban zone);

(b) Set an alternative employment level under ORS 285C.155;

(c) Specify extra demands within the context of a First Source Hiring Agreement that the firm is otherwise required to enter into, as described in OAR 123-674-7700 to 123-674-7730; or

(d) Obligate the firm in a reasonable manner with respect to workforce development, hiring/retention from certain sources or groups, the particular nature of employee benefits, or other employment-related matters that are completely distinct from requirements under ORS 285C.050 to 285C.250 or 285C.412.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.105, 285C.150, 285C.155, 285C.160 & 285C.403
Hist.: OBDD 26-2010, f. & cert. ef. 6-14-10; OBDD 13-2015, f. & cert. ef. 11-12-15

123-668-2300

Reasonableness

This rule offers guidance for evaluating whether local additional enterprise zone requirements are reasonable, such that:

(1) The requirements shall not vary dramatically or erratically over time for business firms interested in investing in the zone and seeking special benefits or waivers.

(2) The requirements shall not be arbitrarily applied, implemented or enforced, in that the sponsor shall be consistent in not only setting conditions, but also in how to handle compliance issues.

(3) The requirements may differentiate among relevant business firms for a given situation as described in OAR 123-668-2000 in terms of investment size, the firm’s industry and so forth, but such differentiation shall be:

(a) Based on definable characteristics;

(b) Consistently applied in its own regard; and

(c) Related to an apparent or expressed public purpose.

(4) The requirements may entail economic costs to the firm because of payments to the sponsor or other entities, or of actions undertaken by the firm, but these costs (less any other consequent benefit to the firm) in relation to OAR 123-668-2000(2)(b) or (c) shall not exceed one-third of the tax savings associated with the entire property tax abatement. With a written agreement, however, in the case of OAR 123-668-2000(1) or (2)(a) the firm may accept higher costs based on its own considerations.

(5) The requirements shall not demand procedures, practices or investments in excess of anything undertaken in the firm’s industry or related industries throughout the world, such that the sponsor shall be prepared to show that such a demand has been accomplished in the normal course of business elsewhere without apparent, extenuating circumstances.

(6) No requirement may cause or compel actions by the firm that have the potential to pose a significant other legal, financial or business threat to the firm, including but not limited to:

(a) Surrendering significant rights, privileges or immunities under state or federal law;

(b) Labor relations that may compromise practices by the firm in other locations where it operates in the United States; or

(c) The release of information that is proprietary, confidential or otherwise threatening to the firm’s market competitiveness or contractual obligations or that of any third party.

(7) The criteria in this rule will typically concern a zone sponsor’s underlying policy, hence the recommendations in OAR 123-668-2400 for deliberate and explicit policy-making to cover certain potentialities.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.105, 285C.150, 285C.155, 285C.160 & 285C.403
Hist.: OBDD 26-2010, f. & cert. ef. 6-14-10; OBDD 13-2015, f. & cert. ef. 11-12-15

123-668-2400

Zone Sponsor Policies

In terms of the means and authority by which local additional requirements are put into effect:

(1) An enterprise zone sponsor shall consider a policy-making approach to achieve accountability and maintain consistency in imposing or setting such a requirement on business firms, especially in view of the following:

(a) Constitutional or other legal protections for business firms; and

(b) General principles of fairness and clarity regarding public purposes and intent.

(2) Such a policy may apply uniformly to the situations as described in OAR 123-668-2000, or it may pertain to only certain situations.

(3) Such a policy is relevant to the sponsor’s rationale in granting or refusing special benefits or waivers, as well as the additional requirements imposed or sought when granting the benefit or waiver to a business firm.

(4) Except for conditions imposed by an urban enterprise zone under ORS 285C.150, such a policy does not need to be prospectively adopted, nor does it need to be based on formal documentation, and it may reflect the cumulative effect of the sponsor’s relevant past actions. A formal, explicit and prospective policy is preferable, especially whenever the following or comparable circumstances arise:

(a) Relevant requests by business firms are common or expected to become increasingly frequent;

(b) Sponsor would differentiate the basic decision to grant or refuse a special benefit or waiver, or to impose additional requirements, in terms of business or investment size or other factors;

(c) The requirements imposed are numerous, complicated or otherwise entail various contingencies or matters of judgment that definite standards would facilitate; or

(d) The sponsor would depart from an apparent pattern in terms of granting a special benefit or waiver or imposing certain corresponding requirements.

(5) In an urban enterprise zone that has adopted a policy under ORS 285C.150, as described in OAR 123-668-2500, any additional requirements imposed with other situations described in OAR 123-668-2000(2) must:

(a) Formally relate to the policy and standards adopted by the zone sponsor; and

(b) Effectively supplement and not replace any condition normally imposed.

(6) A city, port or county government that sponsors two or more enterprise zones is free to have different policies or to seek different local additional requirements among those zones.

(7) In an enterprise zone sponsored by more than one city, port or county, the cosponsors must all jointly:

(a) Adopt the same policy, standards, established local conditions and so forth under equivalent authority or method for purposes of this rule and the enterprise zone; and

(b) Approve the same requisite written agreement in each case.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.105, 285C.150, 285C.155, 285C.160 & 285C.403
Hist.: OBDD 26-2010, f. & cert. ef. 6-14-10; OBDD 13-2015, f. & cert. ef. 11-12-15

123-668-2450

Approving Agreements

The sponsoring city, port or county governments of an enterprise zone may authorize the written agreement with a business firm in the case of OAR 123-668-2000(1) or (2)(a) through a number of approaches, which may differ among the cosponsors, including but not limited to the following examples:

(1) Approval by an official normally empowered to enter into such an agreement under the laws, charters, ordinances and conventions of the cosponsor;

(2) Approval by the person or persons formally and specifically recognized to conclude the agreement, pursuant to a previous accord between the firm and the sponsor;

(3) A specific resolution by the governing body authorizing a preliminary or final written agreement;

(4) A specific resolution by the governing body that authorizes an agent to conclude such an agreement;

(5) A standing policy adopted by the cosponsor that empowers a particular agent to negotiate such an agreement with all or some firms on behalf of the cosponsor (for example, the local zone manager); or

(6) An intergovernmental agreement that delegates to the cosponsor(s), in whose jurisdiction the firm will locate its exempt property, the right to execute the agreement on behalf of the entire zone sponsor.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.105, 285C.160 & 285C.403; OBDD 13-2015, f. & cert. ef. 11-12-15
Hist.: OBDD 13-2015, f. & cert. ef. 11-12-15

123-668-2500

Additional Conditions in an Urban Zone

For purposes of additional conditions imposed on eligible business firms by the sponsor of an urban enterprise zone under ORS 285C.150:

(1) The sponsor of the enterprise zone shall abide by OAR 123-668-2000 to 123-668-2400.

(2) “Groups of persons” as used in ORS 285C.150(2) may comprise the general populace or labor force or any lesser number of persons that is not explicitly defined in terms of geography/residency.

(3) In order to effect and enforce compliance, the sponsor of an urban zone must include formal information in approving the application for authorization that lists and clearly explains the specific additional conditions to which the firm is committing, or to which it may be obligated under certain contingencies.

(4) The written information as described in section (3) of this rule shall appear in a standardized format that conforms to the policy that the zone sponsor has adopted for imposition of such additional conditions, and that is used for all eligible business firms authorized in that urban enterprise zone, including but not limited to a standard performance contract to which firms agrees.

(5) Failure by a firm to satisfy such additional local conditions of an urban zone may affect the exemption in the following ways:

(a) Denial of the authorization under ORS 285C.140(2)(e), but only if the firm does not formally “commit” to meet the conditions;

(b) Refusal of initial qualification for exemption under ORS 285C.175; or

(c) Disqualification of an ongoing exemption in accordance with ORS 285C.240(1)(d), except as provided under 285C.240(6).

(6) The county assessor has an obligation to effect actions described in subsection (5)(b) or (c) of this rule only insofar as the zone sponsor has provided timely and written evidence of such failure.

(7) An eligible business firm shall have the same rights of appeal as provided elsewhere in ORS 285C.050 to 285C.250 for authorization and receipt of the enterprise zone exemption.

(8) The policy and standards adopted by the sponsor affect only proposed investments for which an eligible business firm applies for authorization after the date of adoption.

(9) The sponsor may impose the additional conditions only pursuant to a policy and standards, such that:

(a) The policy entails the adoption by the zone sponsor of formal documentation outlining the sponsor’s purposes, process, factors of consideration and so forth; and

(b) The policy contains standards consisting of established and transparent measures, methods or criteria to implement the policy and define the conditions, as well as specific consequences for the firm’s failure to satisfy those conditions.

(10) Any imposed additional condition must relate in some way to employment opportunities for one or more groups of persons, through:

(a) Actions by the eligible business firm;

(b) Use of funds or resources from the firm;

(c) Other efforts supported by the firm; or

(d) Other means, for which the result is employment-related benefits for groups of persons, consistent with 47 OTR 557 (TC 4167, 1999).

(11) Only urban zone sponsors that have established and implemented a policy and standards described in this rule shall submit a report under ORS 285C.150(6), on or about anniversary date of the policy’s adoption every four years, through the offices of the State Senate President and the Speaker of the Oregon House of Representatives.

Stat. Auth.: ORS 285A.075 & 285C.060(1)
Stats. Implemented: ORS 285C.150
Hist.: OBDD 26-2010, f. & cert. ef. 6-14-10; OBDD 13-2015, f. & cert. ef. 11-12-15

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