Enterprise Zone

A public/private partnership program which provides a three- to five-year abatement on new investments, in exchange for meeting job creation and other business requirements.

Enterprise zones are a development tool to incent industrial development, creating higher wage jobs and higher capital investments within the zone boundary.

State requirements

To receive enterprise zone benefits, eligible businesses must meet these requirements:

• Job creation: Existing companies located inside or within 30 miles of the zone boundary must increase permanent full-time employment by 10%; companies outside the Metro area must create at least one new full-time job to qualify (except for special-case local sponsor waivers for investments over $25 million or 10% productivity increase for existing companies located in the Gresham zone).
• No concurrent job losses in the State of Oregon more than 30 miles from the zone.
• Maintain employment levels during exemption period.
• Enter into first-source agreement with local job training providers.
• Satisfy any additional local conditions.

Gresham's requirements

In addition to state requirements, Gresham requires that qualified businesses meet these local criteria to receive enterprise zone benefits:

Minimum investment

A minimum $1 million investment is required to be eligible for the Gresham enterprise zone program.

Job quality

Zone facility full-time jobs will be required to meet a minimum quality level during the period of exemption.

Wages

Manufacturing firms (51% of revenue from production of a tangible good)

• Production occupations, average annual compensation (wages plus benefits) must exceed 150% of Portland metro minimum wage at time of application.
• All other facility positions, average annual compensation must exceed 200% of Portland Metro minimum wage. Top executive positions or top 5% of payroll shall be excluded from calculation. 

All other eligible uses (i.e., warehouse/distribution, e-commerce, fulfillment center, data center, etc.)

• Average annual compensation for facility jobs must exceed 200% of Portland metro minimum wage. Top executive positions or top 5% of payroll shall be excluded from calculation. Minimum wage rate at the time of application will apply throughout the entire exemption period.

Benefits

• Companies must provide non-mandated benefits to employees at an hourly value equal to or greater than 20% of average annual salary for all years of the exemption.

Community service fee

• Companies applying for an extended abatement of two additional years shall pay a community service fee in years four and five of the abatement period.
• Companies applying for the extended abatement and investing more than $25 million shall pay an extended community service fee in each year of the abatement period.
• The community service fee is calculated at a rate of 25% of the abated taxes and is paid by the eligible business to the City for economic development and job creation activities. 

Workforce development

• Companies shall submit an annual training report detailing training opportunities offered to employees that provide career pathways to higher wage jobs.
• Companies shall establish a non-binding goal for the number of employees promoted to higher level positions through the training opportunities.
• Participating companies shall also provide employment opportunities for targeted Gresham and East Multnomah County residents. 

Procurement plan

• Participating companies will be required to submit a procurement plan demonstrating a good faith effort to increase purchasing with Gresham companies. 

Business identity clause

• A participating company shall make a good faith effort to communicate its business identity as a company located in Gresham.

Application fee

• Applicants shall pay an application fee of one tenth of one percent (.001) of the value of the investment for qualified property estimated in the application, capped at $50,000. Additional application fees will apply if actual investment after three years is more than double the estimated investment. 

Boundary

See the boundary map of Gresham's enterprise zones.

Contact

For information about enterprise zone benefits or to obtain an application, contact Erika Fitzgerald at 503-618-2504 or Erika.Fitzgerald@GreshamOregon.gov.