TO: Mayor and City Council
THROUGH: Keith Stahley, City Manager
FROM: Kristin Retherford, Community Planning and Development Director
SUBJECT:
title
Re-designation of the City of Salem Electronic Commerce Zone.
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Strong and Diverse Economy
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SUMMARY:
summary
The Electronic Commerce Zone is an Oregon State incentive in the Enterprise Zone boundary to encourage predominantly based internet business. The Salem Electronic Commerce Zone has expired. The City of Salem will need to submit an adopted resolution to Business Oregon for re-designation.
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ISSUE:
Shall the City Council (Council) adopt Resolution No. 2024-43 to re-designate the Salem Electronic Commerce Zone (E-commerce Zone)?
RECOMMENDATION:
recommendation
Adopt Resolution No. 2024-43 to re-designate the E-commerce Zone.
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FACTS AND FINDINGS:
The Enterprise Zone is a state property tax abatement incentive program of a limited three-to-five-year duration for new growth in traded sector business. To qualify, applicant businesses must be in the Enterprise Zone boundary that predominantly follows city areas with an industrial zoning designation. The businesses are required to invest at least $50,000 in new building construction or manufacturing equipment and increase their employment by 10% or more. Salem sponsors the Enterprise Zone, and the Strategic Economic Development Corporation (SEDCOR) manages its promotion and application process.
The E-commerce Zone expands the property tax incentive to new personal property investment of $1,000 or more. The additional benefit to the Enterprise Zone incentive may be used to encourage new business in Salem as well as the expansion of existing businesses to consider internet-based sales options.
The E-commerce Zone has expired. The City of Salem will need to submit an adopted resolution to the Oregon Business Development Department (Business Oregon) for re-designation. Oregon State limits the number of E-commerce Zones to 15 and only one opening remains.
BACKGROUND:
The City of Salem has carried the Enterprise Zone incentive for nearly 30 years and the E-commerce designation for more than 20 years. Council last renewed the Enterprise Zone for another 10 years through Resolution 2020-28. The E-commerce Zone was included in this resolution. Staff has recently learned that Business Oregon, the State entity that must approve Enterprise Zones and E-commerce Zones, requires that each zone be approved through a separate resolution. Consequently, the E-commerce Zone renewal was not considered by Business Oregon in 2020. The current resolution will correct this. There have been no E-commerce Zone applicants between 2020 and the date of this resolution.
Marion and Polk counties report annually on the status of beneficiary companies. SEDCOR details new business applicants quarterly. The information is provided to Council through the quarterly reports on economic development.
Tory Banford
Project Manager
Attachments:
1. Attachment 1 - Resolution 2024-43
2. Exhibit A - Salem E-Zone Legal Description
3. Exhibit B - Salem E-Zone Map