Lane County approves distribution formula for Sierra Pacific SIP community service fees

The Lane County Board of Commissioners on Aug. 12 approved an intergovernmental agreement and the percentage allocation for annual community service fees to be paid by Sierra Pacific Industries under the state Strategic Investment Program (SIP).

Jason Harris, the county’s community economic development manager, told the board the Oregon Business Development Commission had approved Sierra Pacific’s SIP application and that, under the SIP statute, the company must pay a community service fee equal to 25% of its property tax savings. Harris estimated the fee pool over the 15‑year SIP term at about $2,000,000 and said the project area includes Lane Fire Authority, Upper Willamette Soil and Water District, and the Junction City Water Control District.

The board approved order 25081206 to set the distribution allocation percentages that staff recommended: Lane Fire Authority 50.5%, Lane County 42.7%, Junction City Water Control District 5.3% and Upper Willamette Soil and Water District 1.5%. Vice Chair moved the order and Commissioner Buck seconded; the motion passed by voice vote, recorded as a 4‑0 vote with Commissioner Farr excused.

Why it matters: the allocation determines how the county and affected local districts will receive and spend the community service fee collected from the SIP participant, spreading the fiscal effect of the tax incentive among local governments in the project area.

Discussion and next steps: Harris said the county previously approved the SIP agreement on June 10 and the Oregon Business Development Commission approved Sierra Pacific’s eligibility on July 11. No additional changes to the recommended percentage splits were proposed during the meeting. Staff will execute intergovernmental agreements consistent with the approved order.

Votes at a glance: Order 25081206 — approved, 4‑0 (Commissioner Farr excused).