Committee forwards resolution to expand Portland Enterprise Zone to include Alaska Airlines maintenance site at PDX

The Arts and Economy Committee voted Jan. 13 to forward a resolution to City Council that would authorize Prosper Portland to request a minor boundary amendment to the Portland Enterprise Zone to include three tax lots near Portland International Airport for a proposed Alaska Airlines maintenance facility.

Prosper Portland staff and partners at the Port of Portland and Alaska Airlines outlined the proposal during the committee meeting. Andrew Fitz Patrick, director of economic development at Prosper Portland, said the amendment is a narrow, technical change to include a development site at the south end of PDX and that participation in the enterprise zone is only one factor in the project’s feasibility.

Why it matters: Enterprise zones provide temporary tax savings on new capital investments; in Portland, businesses that enroll for the full five years must also commit to community benefits under the Portland Means Progress menu. Prosper Portland said the proposed amendment would add three tax lots (about 0.05 square miles) and that inclusion in the zone could help unlock a large private investment and job creation at PDX.

Project scope and jobs: Port of Portland staff said the port supports the boundary adjustment so the full development site can be included. David Long, senior manager of airport development at Alaska Airlines, described plans for a maintenance hangar and related facilities. He said the project would develop about 10.69 acres at the south end of the airport and that once completed it would “support domestic international growth for us and invest in our long term good paying jobs offered here in the city of Portland.” Alaska and port presenters said the facility would support more than 100 full‑time, unionized jobs and include training space.

Numbers cited in the presentation were not entirely uniform: Prosper Portland’s slides noted a build‑out footprint that included roughly 125,000 square feet of hangar space, 60,000 square feet of office space and expanded ramp areas, while Alaska’s presentation described an approximately 197,000‑square‑foot building program that would house hangar, shop and classroom space. Prosper Portland told the committee it would provide clearer reconciled figures to full council.

Program rules and oversight: Prosper Portland staff explained that the zone is authorized by state statute and administered locally by the zone sponsor in coordination with Business Oregon, the Multnomah County Tax Assessor and the Oregon Department of Revenue. Faith Aiken, a Prosper Portland project manager, said the amendment itself does not automatically place Alaska Airlines into the program; the company would need to apply, demonstrate eligibility, submit annual compliance reports and demonstrate any job growth required under statute to realize tax savings.

Living‑wage and public‑benefit questions: Councilor Dunphy said he supported the project but asked whether the jobs offered would meet a living‑wage standard (he referenced an MIT living‑wage estimate of $27.45 per hour for Portland). Prosper Portland replied that the city typically layers local public‑benefit expectations above state minimums—roughly 150% of minimum wage in some cases—and noted many of the positions discussed are unionized. Dunphy: “Do we have the dollar amounts and the requirements and the public benefits calculated properly?” Prosper Portland and Alaska said they would follow up with more concrete wage and benefit figures for the council and committee staff.

Fiscal tradeoffs: Committee members asked about local fiscal impacts. Prosper Portland acknowledged Business Oregon’s impact statement estimate of foregone property tax revenue (a seven‑year average cited in the packet) but said the proposed three‑lot amendment alone would not materially affect the city’s current budget and that the enterprise zone’s purpose is to enable marginal investments that expand the property tax base over time.

Committee action and next step: Councilor Smith moved and Councilor Clark seconded forwarding the resolution to full council with a recommendation for adoption. The clerk called the roll; Councilors Dunphy, Smith, Ryan, Clark and Green voted "Aye." The motion passed and the resolution will be filed with Business Oregon as part of the state’s enterprise‑zone process.

What’s next: Prosper Portland committed to providing reconciled project metrics (building square footage and payroll estimates), the statutory citation that governs the sponsor resolution, and the 2025 Portland Means Progress annual report to committee members and full council before the final council decision. The committee’s next meeting is scheduled for Jan. 27.