Ontario board gives green light to TVRR tax break
Saturday, March 17, 2007 11:47 PM PDT
JESSICA KELLER ARGUS OBSERVER
ONTARIO
The Ontario City Council approved an agreement to grant an extended tax break to Treasure Valley Renewable Resources regarding the Malheur County Enterprise Zone at Monday night’s regularly scheduled meeting.
Ontario is one of four local entities that sponsor the enterprise zone, which was designed to attract industrial and commercial businesses to the area. The other agencies are Malheur County, Vale and Nyssa, which must also give their approval. Nyssa approved its portion of the agreement May 10.
The tax incentives tied into the enterprise zone remain part of the package offered to TVRR to attract the company to situate its facility in Oregon, specifically in Malheur County.
The tax break would extend the standard three-year levy abatement to a period of five years if a number of qualifications are met. According to Ontario City Manager Scott Trainor, the abatement only applies to building improvements and equipment.
Trainor asserted once the five year time limit expires, local agencies will receive an estimated $803,000 in property taxes they otherwise would not have.
A spokesperson for the Oregon Department of Economic Development estimated in 2003 the total tax break TVRR could garner — including energy tax credits, bonding assistance, workforce training assistance and transportation improvements — stands at between $7 million and $8 million.
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 of TVRR.
Monday the council unanimously passed the decision to grant TVRR the tax break with minimal discussion.
Ontario City Councilman Jim Mosier, who previously voiced hesitation to grant an extended tax abatement if it would mean any area agency would collect less money in times of economic hardship, said he was satisfied with the arrangement.
He said, as was explained in the work session by Trainor, officials working on arranging an agreement with TVRR said an extended abatement would be likely should TVRR officials move to Malheur County. TVRR officials had moved forward with placing the facility in Malheur County based on some of those understandings.
He also said he was swayed by the fact TVRR could decide to pull out if the abatement was not granted.
“That caused me to reconsider my position,” Mosier said.
Councilman John Gaskill also raised questions about the agreement, which were answered in the agreement language, specifically TVRR must meet requirements for the extended abatement includes the requirement a certain number of jobs at a certain salary level are available for the local workforce.
Overall, Gaskill said, the abatement could cause temporary suffering, but the hope is the tax break will return dividends in the long-run, including attracting other business and industry.
“Over time you presume the overall benefit is going to be worth the short-term revenue loss,” Gaskill said.
One drawback Gaskill said he saw to the enterprise zone vote is other agencies who do not have a voice in the process, such as the Ontario 8C school district and Treasure Valley Community College are not included in the vote, while the abatement affects them.
“They will not benefit from the increase in the value until the abatement procedure is over,” Gaskill said. “But they don’t have a voice.”
However, Ontario 8C School District Superintendent Dennis Carter said the district still receives the same amount of money from the state before and after a tax abatement, so an extended abatement does not affect the district’s revenues. He said, in calculating how much money a school district should receive from the state, the amount of property taxes received is deducted from the amount of state funds. Essentially, whatever the district receives from local property taxes will be deducted from the amount of money the state has determined a district should receive. Carter, however, does not know how TVCC is affected by the abatement.
Also during the meeting, the City Council granted the 2005 City of Ontario Excellence in Leadership Award to Ontario High School senior Stephanie Simpson, who is the daughter of outgoing Ontario Fire & Rescue Chief Randy Simpson. Stephanie Simpson received a scholarship to play softball at Whitman College in Walla Walla, Trainor said. With the award, Simpson receives a $500 scholarship award.
The council also met in executive session to consider records that are exempt from public records laws. Trainor said the council members received confidential business records, including financial statements, regarding Kampground of America developing in Ontario. The business records are for the council’s information and possible consideration if KOA should be allowed to develop in Ontario.
Business records, such as financial statements, are exempt from the Oregon Public Records law.
