Council expands enterprise zone to add employment lands; staff asked to study Butler site for data‑center potential

The Newberg City Council voted unanimously Jan. 21 to expand the city’s enterprise zone boundaries to include additional employment and industrial lands, a move staff said will make more sites eligible for short‑term property tax exemptions tied to new investment and job creation.

The resolution (staffed as Resolution No. 2024‑3957) extends the zone to roughly 180 additional acres across about 87 tax lots, bringing the zone to about 0.84 square miles. James Dingwall, assistant planner, told council the expanded area includes light industrial (M1/M2) and the newly adopted M5 craft‑industrial district and that the expansion responds to multiple inquiries from firms just outside the prior boundary.

How the enterprise zone works: eligible companies that make qualifying capital investments (buildings, fixed equipment, major site improvements) can receive a 100% property‑tax exemption on that new investment for up to three years; firms that meet higher wage thresholds can receive up to two additional years. The minimum qualifying investment is $50,000 in new fixed assets, and job creation thresholds apply unless a local waiver is used.

Staff said the zone redesignation last fall already led to about $950,000 in authorized investments and that the boundary expansion is intended to reduce barriers for additional traded‑sector employers.

Vote: Councilor Peggy moved adoption; the motion was seconded and passed unanimously without roll‑call tallies recorded on the meeting audio. Mayor Rosacker thanked staff for the work.

Butler property / data‑center discussion: after the motion, Mayor Rosacker raised the Butler property and asked staff to investigate whether the site could suit a data center (sometimes called a server farm). Staff and legal counsel said the key technical questions are power capacity and water access and that preliminary sampling had cleared soils and environmental concerns but that transportation access and power infrastructure remain constraints.

Council asked staff to: (1) compile comparable data‑center case studies and staffing profiles that show how many on‑site jobs such facilities typically create; and (2) obtain cost estimates for a PGE‑required power‑capacity study (through Keller Engineering or a similar firm) so Newberg could offer ready information to potential buyers or Business Oregon. City staff said Business Oregon will promote sites but that Newberg needs a power study to show feasibility. No financial commitment was made; council asked staff to report back with a cost and scope estimate.

Ending: The boundary change takes effect after Business Oregon final review. Staff will submit the adopted resolution and supporting materials to Business Oregon and return with the requested data on the Butler property if council directs next steps.