Most Clackamas cities will use the incentive to help the county nationally market around 900 acres worth of eligible properties. Among other goals, strategic investment zones aim to lure companies that manufacture high-tech and energy-generation equipment.
To be eligible, businesses must invest either $100 million within the urban growth boundary or $25 million in the county’s rural areas to construct new facilities or purchase new equipment. Companies must also commit to hiring county residents first for new jobs created by the incentive.
Companies using the incentive would need to pay a community service fee equal to 25 percent of their tax savings per year. The figure is capped at either $2 million or $500,000, depending on whether or not the company locates inside the urban growth boundary.
None of Clackamas County’s traded-sector companies have an assessed tax value that exceeds $100 million.
“The Strategic Investment Zone is an important part of our portfolio of incentives and tools,” said Clackamas County Commissioner Jim Bernard, in a statement. “It’s a powerful 15-year incentive we hope will attract serious attention from large traded-sector firms once the economy rebounds.”
The incentive is an extension of Oregon’s state-administered strategic investment program. Santa Clara, Calif.-based Intel Corp., which reported $36 billion in 2009 revenue, used the strategic investment program to build $37.3 billion worth of facilities at its Hillsboro campus since 1999.
According to the Construction Monitor www.constructionmonitor.com and the Home Builders Association of Metropolitan Portland, here is the 2008 Year-to-Date Building Permit activity by county. It is at its lowest since 1991.
Many small builders haven’t built anything new in several months and in some cases more than a year. If you read my recent post “Market Update: New Construction“, you will see there is still a large inventory of new homes that builders need to unload. Remodeling is also lagging.
In addition, many of the local builders here have filed for bankruptcy protection as I reported in my “Top 50 Builders in Oregon” post. This weekend, I happened to notice another one of our larger local builders, whom I won’t name, is selling some of his lot inventory. Is he in trouble or is he just making sure he won’t be?
2008 Year-to-date Building Permit Activity by County
Disclaimer: All information in this post is subject to change without notice. Subject matter is an opinion, is not guaranteed, may be time sensitive, and may be based on information collected from several sources which may or may not be reliable at the time of sourcing.
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