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Board approves Sierra Pacific Industries’ 15‑year SIP request with $525,000 community benefit for rural patrol
Summary
The Lane County Board approved forwarding a Strategic Investment Program agreement for Sierra Pacific Industries’ proposed $253 million upgrade to its Eugene sawmill to the Oregon Business Development Commission and accepted a $525,000 one‑time community benefit payment designated for rural patrol.
The Lane County Board of Commissioners voted unanimously Tuesday to approve proposed terms of a Strategic Investment Program (SIP) agreement for Sierra Pacific Industries’ planned capital investment at its Eugene sawmill and to request final determination from the Oregon Business Development Commission.
Jason Harris, county staff lead on the item, described the SIP as a state property‑tax exemption program intended for large capital investments in trade‑sector businesses. Because the Eugene sawmill project is in an urban area and the company proposes a $253 million investment, it qualifies for SIP review under state law. Under the program, certain new investments are abated over a 15‑year term while the first $100 million of improvements remains taxed with a 3% incremental growth factor.
Harris said staff estimates the company would pay roughly $46.4 million in total taxes and community service fees during the 15‑year term compared with about $52.3 million without a SIP, for a net estimated savings of about $5.9 million to the company. The company proposed a voluntary community benefit payment; staff recommended and the board accepted a one‑time $525,000 community benefit payment, and during deliberations the board specified that payment be dedicated to rural patrol.
Under the SIP structure the company also pays a community service fee equal to 25% of tax savings above the initial threshold; staff estimated that 25% fee on the projected savings would amount to about $2 million distributed to taxing districts (excluding schools) per SIP formulas. Harris said the company plans to maintain its current workforce through construction and pledged to complete at least $150 million of the investment by 2028.
The board moved and amended the motion to specify the one‑time $525,000 community benefit payment be allocated to rural patrol, then voted 5–0 in favor and directed staff to forward the agreement and request to the Oregon Business Development Commission. If the commission approves, staff will return later this summer with an intergovernmental agreement to distribute the community service fee among taxing districts.
