WCC trying to make city more business-friendly with designation

If granted, city officials believe more jobs will come to Woodburn

WOODBURN — The city of Woodburn is trying to get a special zoning status that would allow tax deferrals for industrial businesses to come in or expand.
 
The designation, called an “enterprise zone,” offers incentives to attract investment by nonretail businesses. The idea is to give projects a short-term but immediate benefit to their cash flow.
 
The zoning designation targets economically distressed areas, such as Woodburn.

According to Community Development Director Jim Hendryx, the zoning would boost Woodburn’s appeal to potential businesses.
 
“It gives us an economic tool that we can use to encourage (businesses) to locate here,” said Hendryx. “It’s a deferral on taxes. Now, they may not come here in the first place, but with this, if they do, we gain in the long run. After the deferral lapses, we get the tax money. Everybody gets the tax money.”
 
Hendryx also pointed out that jobs could be created.
 
“It brings new jobs to a community. … That’s a really high goal for council— jobs creation. With this program, you have to create jobs.”
 
If Woodburn got the designation, it would keep it for 11 years.
 
State law permits up to 59 enterprise zones. The zones, which were established in the 1980s when the economy was poor, range up to 12 square miles in size.
 
In order for business or investment to qualify for the tax deferral, it has to create new full-time employment in the zone — the greater of one new job or a 10 percent increase.

The deferrals would range from three to five years.
 
Most commercial or retail-type operations are ineligible, with the program aiming at manufacturing and other industrially-oriented facilities.
 
It is unclear at the moment how competitive the zone designation will be. Twelve districts are up to lapse but it is unknown how many or if all are reapplying.
 
The deadline for the city’s application is April 2.
 
Hendryx said they will know if the city will have received it by mid-June or earlier.

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