Council approves second amendment to Amazon enterprise-zone abatement after site plan change

The Umatilla City Council on Feb. 18 approved a resolution authorizing a second amendment to the city’s long-term rural enterprise-zone tax abatement agreement with Amazon Data Services, Inc., after the company revised its site-build plan.

The amendment restores the agreement’s original terms and responds to a change in Amazon’s site plan: the company will build two buildings at the campus rather than four because of steep site topography, Sheena Sharma, a member of the city’s economic development team, told the council.

The change reduces the campus footprint but, Sharma said, “they still meet all the state requirements for job creation and wage requirements of those positions.” She said the amendment returns the contract language to the original performance criteria negotiated in October 2022 and away from the earlier 2023 modification.

Why it matters: payments that Amazon makes in lieu of property tax under the agreement are calculated on a per-square-foot basis. City staff said the annual in-lieu payments will therefore be adjusted downward in line with the smaller footprint; other contract payments such as the student-success fee and public-safety fee remain unchanged.

Details from the presentation: Sharma explained the contract’s additional payment is computed at $5 per square foot of constructed facilities, and she estimated that a full original campus would have been roughly 1 million square feet while the revised plan would be roughly half that. She told council the amendment does not change the threshold matrix that references state criteria (130% median wage threshold and a minimum job-creation level described in the agreement).

Council Q&A focused on fiscal and timeline impacts. One council member asked whether the amendment shortens the project timeline; staff said the timeline has not shifted based on the amendment alone. Another council member asked how taxing districts will be affected; staff said during the 15-year abatement period and thereafter the total tax contribution will be lower because the buildings will be smaller.

The council approved the resolution by voice vote. The motion to approve resolution 21-2025 was made and seconded; the council chair declared the ayes had it.

Ending: City staff said the amendment returns the city’s contract to the original terms while recognizing the site’s topography drove a smaller physical build. The city will adjust annual in-lieu payments once building square footage and finalized site plans are available.