Morrow County commissioners approve letter asking Port of Morrow to oppose HB 2725 language on SIP participation

Morrow County commissioners voted at a special meeting to direct staff to send a letter to the Port of Morrow asking the port to oppose language in House Bill 2725 that would preserve port participation in Strategic Investment Program (SIP) agreements for a small subset of ports.

The move comes after county staff described HB 2725 as legislation intended to roll back a 2023 change to SIP participation made in House Bill 2009, but with an amendment that would preserve port inclusion for a small number of ports — potentially including only the Port of Morrow and the Port of Umatilla. August Peterson, the lead on the agenda item, said the amendment “seems like a significant overreach” if it leaves Morrow County uniquely excluded from having primary authority over SIP agreements outside port- or city-owned property.

Peterson told the board that HB 2009 had added ports as required participants in SIP agreements statewide and that HB 2725 would largely return authority to counties except where the bill specifically preserves port participation for ports with four or more industrial parks on the Columbia River. “It seems like this kind of last minute amendment that was done to HB 2009 has had a much more impactful impact than was intended,” Peterson said.

Lisa, a Port of Morrow representative, told commissioners the port views SIP participation as another tool for partnership with the county rather than a discretionary mechanism to divert projects. “We will be working together as partners to go through the negotiation of the SIP and figure out how to spend that money,” Lisa said. She added that the port already uses tax abatement tools in Morrow County and described the port as “the second largest port” in the area with substantive experience negotiating abatements.

Board members raised process questions about timing and how to present a united front. Jay (staff) advised the board that presenting a united front — county plus port — to the Oregon House Transportation Committee during hearings would strengthen the request to remove the selective language from the bill. “If you could have a united front in your county and you could bring this to the Transportation Committee when they have hearings on it … it could be killed in committee,” Jay said.

Commissioners and staff described outreach that began in mid-2024, including contact with Representative Greg Smith and Representative Bobby Levy and discussions facilitated by the Association of Oregon Counties and the Oregon Port Association. Staff said the AOC supports returning SIP authority to counties and that AOC staff are coordinating legislative contacts; Myles Palacios and Justin Lowe of AOC were mentioned as involved in that coordination.

After discussion, a commissioner moved and a second was given to approve a letter to the Port of Morrow asking the port to oppose the selective language in HB 2725 and, if the port will not support removing the language, to authorize additional letters to legislators or testimony as needed. The motion passed after a voice vote; the commission chair stated, “All in favor. Aye. All opposed? Motion carried.” The transcript records no roll-call vote or named tally.

The board emphasized the desire to resolve the matter quickly because the port commission had a meeting the following Monday and because the bill is currently in the Transportation Committee. Commissioners also noted the board’s February 5 meeting as a possible follow-up if additional legislative letters or testimony are required.

Why it matters: SIP agreements and enterprise zones are local economic development tools that can include tax abatements for qualifying projects. The board said the 2023 amendment that added ports as required participants changed local authority over SIPs and that a selective rollback that leaves only a few ports included would alter the balance of decision-making on future abatements and could constrain county tools for economic development.

What happens next: Staff will send the approved letter to the Port of Morrow and, depending on the port’s response, the county may send additional letters or present joint testimony to the House Transportation Committee while the bill is in committee. The county indicated it would seek a unified local position if possible and pursue committee-level engagement with Salem if necessary.