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Beaverton needs businesses back

Ten or 20 years ago no one with a straight face could argue that Beaverton needed to offer tax incentives to lure business expansion. In fact, businesses were clamoring to develop in the industrial parks and business districts of the city and throughout much of Washington County.

But as the second recession in less than a decade took its toll, many of those businesses cut back operations, consolidated or closed. The city reports that it has a 16 percent vacancy rate in its business district—twice the statewide average. Beaverton’s wholesale and manufacturing industry lost about 40 percent of its employees from 2003 and 2009, according to the city’s economic data.

Beaverton needs businesses back. And the jobs that come with them.

Last week Business Oregon approved a new Enterprise Zone for Beaverton. It will include the area from Highway 217 east to Elm Avenue, the underutilized light industrial parks west of Highway 217 from Southwest Fifth Street to Scholls Ferry Road, and a few smaller areas between the Tualatin Valley Highway and Jenkins Road near Murray Boulevard.

The authority to create a new “E-Zone” is a direct result of HB 4093, which state Sen. Mark Hass carried to passage on the Senate floor, and we both enthusiastically supported.

As advocates of this legislation, we were well aware of E-Zones’ record of success. The most recent and famous companies to take advantage of these tax incentives are Facebook and Apple. Both of these mega-technology companies discovered Prineville as the ideal place to build huge new data centers. These data centers — and the hundreds of new jobs they provide — are a great shot in the arm for a struggling community that can no longer depend on the forest products industry.

Here’s how these enterprise zones work:

Businesses that locate in the zone, or expand there, are eligible for property tax abatement for three to five years. There would be no net loss to property tax revenues that currently go to schools and local government. The program excludes retail, construction and financial businesses. In exchange, Beaverton would require the company to invest at least $1 million and hire more full-time employees. To their credit, city officials raised the ante for these businesses: In exchange for these tax breaks, the jobs must be good jobs. They must include benefits such as health care, and these companies must agree to certain conditions of being a good citizen.

Cities often receive inquiries from companies looking for the best place to relocate or expand. Beaverton is now equipped to offer competitive incentives that will create good paying jobs in our community.

Enterprise zones by themselves will not turn our economy around. But they are a proven and effective tool to spur economic development. This was a good step for Beaverton, a place that, in past decades, never had to work hard to convince businesses this was the right location. We’re proud to be part of the team that’s building a strong economic future for Beaverton.

State Sen. Mark Hass and Rep.

Tobias Read represent Beaverton in the Oregon Legislature.


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