Court
Saturday, March 17, 2007 11:47 PM PDT
approves TVRR tax break
Larry Meyer Argus Observer
VALE
Only one more sponsor of the Malheur County Enterprise Zone remains to approve an inquiry by Treasure Valley Renewable Resources to extend a tax abatement after the Malheur County Court Wednesday gave its OK to the company’s request Wednesday.
TVRR has asked for an extension on the tax break allowed for businesses situated within an enterprise zone from three to five years. The Malheur County Enterprise Zone was previously pushed out to include the proposed site of TVRR’s bio-refinery, and the company was originally eligible for a three year tax exemption.
Tax exempted items would be property taxes normally assessed on new plants and equipment. Under Oregon law, enterprise zones were created to help local governments provide tax incentives to help spark private business, according the to the Oregon Economic and Community Development Department.
According to the new agreement, the property tax exemption will include an additional two years on all property that initially qualifies, in or before, the tax assessment year beginning Jan. 1, 2007.
To qualify for the extended two years, the company had to agree to maintain a certain average wage level during the span of the exemption.
Court members approved and signed the agreement between the zone sponsors and TVRR during their regular session. Ontario City Council members gave their consent to the document Monday, and the Nyssa council passed it last week. The Vale City Council is scheduled to take up the agreement at its meeting Tuesday. Malheur County Counsel Stephanie Williams said all four sponsors of the enterprise zone — the three cities and the county — must sign the agreement for the tax exemption request to fly.
She explained all taxing entities had been notified the tax extension request had been filed and all approved except for the Ontario Rural Fire District and the Rural Road Assessment District No. 3. In negotiations mediated by the county, TVRR agreed to pay the road district $10,000 per year in lieu of taxes to help pay for road maintenance in the vicinity of the bio-refinery site. Payments will begin when TVRR breaks ground for construction on the bio-refinery, scheduled for 2006. The payments will end when the property goes on the tax roles at the end of the exemption or when certain road improvements begin under a commitment of funds from the Oregon Department of Transportation to upgrade specific roads that service the bio-refinery site. No payments will be made after 2010.
In addition, the Ontario Rural Fire District will receive $20,000 a year until 2012 or when the tax exemption ends, to pay for specific training and equipment requirements the fire department will need in order to respond to emergencies at the bio-refinery.
Asked about the difference in payments, Williams said, “It is what was negotiated,” and noted that Rena Cusma, south area manager, Oregon Department of Transportation, had confirmed $3.1 million to upgrade the freight route, which would include the route to the bio-refinery site, has been set aside by the state.
Supporters of the $77 million bio-refinery concept assert it will create more than 60 jobs for the local economy. A number of key local political leaders, Oregon Gov. Ted Kulongoski and the OECDD worked to get TVRR to situate the plant in Malheur County.
In January 2004 the Malheur County Court approved an ordinance to create an M-3 Agricultural Processing Zone for a parcel of land south of Ontario for the proposed plant. The land was previously zoned exclusive farm use. The site of the proposed bio-refinery was not originally in the enterprise zone, which was expanded to include it.
TVRR is still going through the regulatory process of obtaining air quality and water quality permits from the Oregon Department of Environmental Quality, and is scheduled to go before the Malheur County Planning Commission for the site review process in June.
As of 2004, a number of area elected officials were listed as investors and members of TVRR’s board of managers.
