Troutdale residents will have to wait a little longer for their library. As you may have read in the newspapers, the proposed Multnomah County Library for Troutdale hit a snag this week. Troutdale Partners LLC notified Multnomah County they were withdrawing as candidates for a library to be located in downtown Troutdale. Sources tell me that in spite of the advantage of a long-term library lease, banks were still gun-shy about financing this project.
Here's what the Gresham Outlook reported: "Citing problems with financing and market conditions, officials with Bremik Construction, owner of the Discovery Block property at Second Avenue and Historic Columbia River Highway, informed county officials they could not move forward with a mixed-use development plan that included a new 6,000-square-foot library.“Discussions with Multnomah County have been productive and cordial, and had market and financing conditions not significantly deteriorated, we would have been proud to be the landlord for Multnomah County’s new Troutdale Library,” said Mike Wells, a Bremik spokesman."
On the FedEx front, Troutdale city staff continue to help the Port of Portland slog through the hundreds of details necessary to begin construction on subdivision improvements at the former Reynolds/Alcoa site. The Port's First Phase Subdivision, called "Troutdale Reynolds Industrial Park(TRIP) plat, was approved by the Troutdale Planning Commission and is ready to be signed off by the City's Community Development Director and Public Works Director.
Next on the to-do list: the Port's sale of one of the new subdivisions to FedEx so they can begin construction of their 425,000-square foot regional distribution center on Sundial Road along the Columbia River to replace its Swan Island facility in North Portland. This sale could be completed within the next few weeks.
FedEx Ground has submitted cash and paperwork to the City in order to take advantage of Troutdale's Enterprise Zone. On July 29, 2008, FedEx Ground paid the City $84,375, which represents 75% of their Enterprise Zone(EZ) initially computed application fee, and submitted two remaining elements of their EZ application. When the FedEx Ground buildings are completed, the final value of their tax abatement will be calculated. Then FedEx will need to pay the remaining 25% of the fee.
Showing posts with label FEDEX. Show all posts
Showing posts with label FEDEX. Show all posts
Jan 10, 2008
Port of Portland Approves Troutdale Industrial Park Sale To FedEx Ground
According to Oregonlive.com, the Port of Portland approved the sale of a 78 acre industrial park site in Troutdale to FedEx Ground. The sale is contingent on redevelopment of the industrial park by the Port of Portland and approval by Troutdale of the industrial subdivision. The sale price: $16.96 million. Read the rest of the article here.
Jan 1, 2008
FedEx Ground Business Model: In Trouble?
From PR Newswire and Fox News:
"For the first time, FedEx Corporation (NYSE: FDX: 89.17, -1.45, -1.60%) has publicly said regulatory and legal challenges to its employment classifications could result in costs detrimental to its stock price. The statement was buried in FedEx's earnings report released Thursday."
Read about Troutdale's proposed FedEx Ground site here.
"For the first time, FedEx Corporation (NYSE: FDX: 89.17, -1.45, -1.60%) has publicly said regulatory and legal challenges to its employment classifications could result in costs detrimental to its stock price. The statement was buried in FedEx's earnings report released Thursday."
Read about Troutdale's proposed FedEx Ground site here.
Oct 13, 2007
Skanska Snags Troutdale FedEx Project
According to the Daily Journal of Commerce, construction giant Skanska is "looking for subcontractors to work on FedEx's new $102 million distribution center in Troutdale."
Read about the history of FedEx and Troutdale here.
Read about the history of FedEx and Troutdale here.
Sep 5, 2007
Aug 30, 2007
FEDEX Plans Moving Forward In Troutdale
Oregonian reporter Gosia Wozniacka has a well rounded article in today's Oregonian about FEDEX's proposed new Troutdale Facility. She even quoted me accurately! Read the article at Oregonlive.com.
Jul 31, 2007
Troutdale Enterprise Zone Work Session
I just got back from our city council work session regarding the joint Troutdale/Fairview Enterprise Zone (EZ). First, we decided that Fairview and Troutdale would each have their own criteria within the joint EZ.
Next, we covered four basic points:
1)Areas zoned industrial to be included in the two city Enterprise Zone:
In Troutdale, we're going to limit the EZ to just the old Reynolds Metals area. Which means no EZ for the pig farm property across the street from McMenamins Edgefield, and No EZ for the industrial land adjacent to Mt. Hood Community College (click here to see a map of the original proposed industrial lands considered for the EZ in Troutdale and Fairview).
2)Hotel/motel option inclusion or exclusion:
We decided to include this option.
3) Name for the two city joint application e.g. Troutdale-Fairview EZ:
We decided on a neutral name such as Cascade-Columbia EZ, or something along those lines.
4)EZ Manager:
There will be co-managers, one each for Fairview and Troutdale. The first year, we will probably contract with the city of Gresham to manage the new EZ
Next, we discussed Enterprise Zone Criteria that companies must meet in order to be eligible for tax abatement, as follows:
Minimum Investment:
We were all over the board here. There wasn't any agreement, except that we didn't have enough information to make a decision. Some wanted a $1 million minimum investment with a $75/SF minimum. Others wanted $100/sf minimum. City staff pointed out that the FEDEX's pure construction cost will come in at $53-57/sf, so a higher minimum than $50 is problematic if FEDEX is to meet this requirement. So city staff will be coming back to us with more information next time. I predict a battle with this item in the future.
First Source Agreement:
We'll probably go with the state-required minimums, but again, we wanted more information.
Procurement Plan:
Of course, we all want to see preference given to Troutdale or east county vendors. But we were undecided on details. Again, we wanted more specifics on what we could or could not require.
Job Quality:
Quite a bit of disagreement here. Some wanted a requirement of 75% of full time employees at 200% of minimum wage, plus benefits. Some wanted an average of all employees at 150% of minimum wage. According to the Port of Portland representative at the work session, FEDEX indicated that had a concern with e 200% minimum wage level for 75% of full time employees. No decision was made tonight. This will be a tough call. But personally, I would rather have a lot of jobs at 150% of minimum wage than no jobs at all.
Application Fee:
Surprise: We were unanimous on a .1% of the value of the investment.
Maximum Length of Tax Abatement:
The consensus (Actually, I counted a 5-2 split on this) was for only three years of tax abatement.
And that was that. Earlier tonight,we also had an executive session regarding negotiations for the road through the Chelsea property. I hope to have news on these negotiations within a month or two.(In a nutshell, Troutdale's urban renewal area is landlocked. We need to demolish a small section of the outlet mall in order to build a road through the existing Columbia Gorge Premium Outlet Mall. After the Troutdale city council voted last year to approve condemnation proceedings against Chelsea for the land needed for this road, the city and Chelsea began negotiating the terms and conditions for a "friendly" condemnation).
Next, we covered four basic points:
1)Areas zoned industrial to be included in the two city Enterprise Zone:
In Troutdale, we're going to limit the EZ to just the old Reynolds Metals area. Which means no EZ for the pig farm property across the street from McMenamins Edgefield, and No EZ for the industrial land adjacent to Mt. Hood Community College (click here to see a map of the original proposed industrial lands considered for the EZ in Troutdale and Fairview).
2)Hotel/motel option inclusion or exclusion:
We decided to include this option.
3) Name for the two city joint application e.g. Troutdale-Fairview EZ:
We decided on a neutral name such as Cascade-Columbia EZ, or something along those lines.
4)EZ Manager:
There will be co-managers, one each for Fairview and Troutdale. The first year, we will probably contract with the city of Gresham to manage the new EZ
Next, we discussed Enterprise Zone Criteria that companies must meet in order to be eligible for tax abatement, as follows:
Minimum Investment:
We were all over the board here. There wasn't any agreement, except that we didn't have enough information to make a decision. Some wanted a $1 million minimum investment with a $75/SF minimum. Others wanted $100/sf minimum. City staff pointed out that the FEDEX's pure construction cost will come in at $53-57/sf, so a higher minimum than $50 is problematic if FEDEX is to meet this requirement. So city staff will be coming back to us with more information next time. I predict a battle with this item in the future.
First Source Agreement:
We'll probably go with the state-required minimums, but again, we wanted more information.
Procurement Plan:
Of course, we all want to see preference given to Troutdale or east county vendors. But we were undecided on details. Again, we wanted more specifics on what we could or could not require.
Job Quality:
Quite a bit of disagreement here. Some wanted a requirement of 75% of full time employees at 200% of minimum wage, plus benefits. Some wanted an average of all employees at 150% of minimum wage. According to the Port of Portland representative at the work session, FEDEX indicated that had a concern with e 200% minimum wage level for 75% of full time employees. No decision was made tonight. This will be a tough call. But personally, I would rather have a lot of jobs at 150% of minimum wage than no jobs at all.
Application Fee:
Surprise: We were unanimous on a .1% of the value of the investment.
Maximum Length of Tax Abatement:
The consensus (Actually, I counted a 5-2 split on this) was for only three years of tax abatement.
And that was that. Earlier tonight,we also had an executive session regarding negotiations for the road through the Chelsea property. I hope to have news on these negotiations within a month or two.(In a nutshell, Troutdale's urban renewal area is landlocked. We need to demolish a small section of the outlet mall in order to build a road through the existing Columbia Gorge Premium Outlet Mall. After the Troutdale city council voted last year to approve condemnation proceedings against Chelsea for the land needed for this road, the city and Chelsea began negotiating the terms and conditions for a "friendly" condemnation).
Tonight's Agenda: How Large An Enterprise Zone?
At tonight's Troutdale City Council work session, we will be discussing the size of the proposed Troutdale/Fairview Enterprise Zone (EZ), along with the terms and conditions we'll require for EZ eligibility.
Within Troutdale city limits, should The EZ include not only the old Reynolds Metals Property (Marked as Zone 1 on the map), but also the "Pig Farm" property across the street from McMenamins Edgefield (Zone 4), and the Mt. Hood Community College's "shovel ready" site (Zone 5 on the map)?
My intent when voting to approve the pursuit of an EZ was to include only the old Reynolds Metals property in a new EZ. I don't have time to go into details in now (gotta eat dinner before the meeting!. But if you're interested in the entire subject, click here to download tonight's agenda packet.
Within Troutdale city limits, should The EZ include not only the old Reynolds Metals Property (Marked as Zone 1 on the map), but also the "Pig Farm" property across the street from McMenamins Edgefield (Zone 4), and the Mt. Hood Community College's "shovel ready" site (Zone 5 on the map)?
My intent when voting to approve the pursuit of an EZ was to include only the old Reynolds Metals property in a new EZ. I don't have time to go into details in now (gotta eat dinner before the meeting!. But if you're interested in the entire subject, click here to download tonight's agenda packet.
Jul 16, 2007
FEDEX's Troutdale Proposal Takes Another Step
According to city staff, last week FEDEX submitted site and design review plans for their proposed new major distribution hub at the old Reynolds metals site. According to a previous story in the Gresham Outlook, the hub would occupy 76 acres which would include a 424,000 square foot main building, and could add between 500-1000 jobs.
This doesn't mean that anything is finalized. On the city's side, the site and design review plans go through a completeness check. Once this check is completed to satisfaction, Oregon law requires that Troutdale make land use decisions (including appeals) within 120 days.
And of course, no project is considered a "done deal" until the doors open for business.
This doesn't mean that anything is finalized. On the city's side, the site and design review plans go through a completeness check. Once this check is completed to satisfaction, Oregon law requires that Troutdale make land use decisions (including appeals) within 120 days.
And of course, no project is considered a "done deal" until the doors open for business.
Jul 11, 2007
Troutdale City Council: Yes to Enterprise Zone
After a long and sometimes contentious city council public hearing last night, we voted to go ahead with the steps needed to create an enterprise zone at the old Reynolds metals site. The final vote was 5-2, with councilors Ripma and Kight voting no.
What we actually voted on was to authorize the mayor to request a new State Enterprise Zone(EZ) authorization round, and direct city staff to begin work on the final language for a Troutdale/Fairview Resolution Authorizing Application to Establish and Enterprise Zone.
Why did I vote yes? Even within an EZ, new construction or development is never a sure thing. I was not convinced that EZ's are a valuable economic tool except for the fact that we can require a minimum criteria in order for a company to be eligible for tax abatement within the EZ.
As an example of what other cities have required in their EZ criteria, Gresham requires a minimum investment of $1 million. For projects involving construction, a minimum of $75/sf is required. Gresham requires a procurement plan to increase purchasing from Gresham companies. Gresham's EZ criteria also require that at least 75% of all full-time employees must be paid at least 200% of minimum wage after one year of employment, and must provide benefits to full time employees that meet or exceed the national average. Troutdale's criteria may be different. We're working on them now.
The Reynolds site is a unique area as far as taxation is concerned. Troutdale has never received property tax income from this site because it wasn't within the city limits until a few months ago. Troutdale only recently annexed this property in February of this year. And when the Port of Portland takes title to this property in September or October of this year, the property taxes generated will again be ZERO. Why? Because the Port of Portland, as a governmental agency, pays no property tax. So if no development occurs, and if the Port doesn't sell the land to a private entity such as FEDEX, there will be no property taxes for this site.
Some people think we're giving away property taxes by creating this EZ. . We're not writing a check to FEDEX or any other company that might locate within the EZ. We are delaying when the property taxes begin for these companies by three years. Troutdale's share of the abated property taxes over three years will be approximately $1 million total. In return for that $1 million, if FEDEX comes to this site, FEDEX will be constructing an $80-100 million facility with estimated employment of 1000 jobs at the end of three to five years. That's a good trade-off.
In the past as well as right now, there will be NO tax dollars coming from the Reynolds site. But but with an EZ, after the tax abatement period ends, an estimated $1.3 million in tax revenue will be generated for all taxing districts. Troutdale's share of this: $383,000 per year. ZERO tax revenue in the past, now and for three to five more years. With an EZ: at the end of the tax abatement period, $383k per year for Troutdale as long as FEDEX remains.
Without an EZ, the Reynolds site could be filled with warehouses, with only 3-4 jobs per acre at low wages.(look at Airport Way, Marine Drive). With an EZ and minimum criteria: 1000 jobs (about 14 per acre), jobs which will be 150-200% of minimum wage and with good benefits.
Are there any guarantees? No. But lets face it, whether or not we like property tax abatement, it's a fact that Troutdale is dealing with an extremely competitive economic development environment. Other cities in the Metro area have EZ's. East Multnomah County has not been competitive in job creation. This EZ gets us on a level playing field.
Some people have said companies might come to the Reynolds site without an EZ. Maybe that's true, maybe it's not true. But FEDEX has expressed interest. They've already had a pre-application conference with the city. This deal is on the table now. I'll take real interest and good chances of success versus pie in the sky any day.
I've gone from being for and against the creation of this EZ on a daily basis for the last two weeks. But when I narrow it down to what's best for Troutdale, and after looking at all the issues from both the positive and negative side, I made the judgement that the EZ is what's best for Troutdale. So did a wide majority of the rest of the city council by a 5-2 vote. A majority of the citizens that came to the pubic hearing last night agreed with us. 1000 new jobs is worth the effort.
What we actually voted on was to authorize the mayor to request a new State Enterprise Zone(EZ) authorization round, and direct city staff to begin work on the final language for a Troutdale/Fairview Resolution Authorizing Application to Establish and Enterprise Zone.
Why did I vote yes? Even within an EZ, new construction or development is never a sure thing. I was not convinced that EZ's are a valuable economic tool except for the fact that we can require a minimum criteria in order for a company to be eligible for tax abatement within the EZ.
As an example of what other cities have required in their EZ criteria, Gresham requires a minimum investment of $1 million. For projects involving construction, a minimum of $75/sf is required. Gresham requires a procurement plan to increase purchasing from Gresham companies. Gresham's EZ criteria also require that at least 75% of all full-time employees must be paid at least 200% of minimum wage after one year of employment, and must provide benefits to full time employees that meet or exceed the national average. Troutdale's criteria may be different. We're working on them now.
The Reynolds site is a unique area as far as taxation is concerned. Troutdale has never received property tax income from this site because it wasn't within the city limits until a few months ago. Troutdale only recently annexed this property in February of this year. And when the Port of Portland takes title to this property in September or October of this year, the property taxes generated will again be ZERO. Why? Because the Port of Portland, as a governmental agency, pays no property tax. So if no development occurs, and if the Port doesn't sell the land to a private entity such as FEDEX, there will be no property taxes for this site.
Some people think we're giving away property taxes by creating this EZ. . We're not writing a check to FEDEX or any other company that might locate within the EZ. We are delaying when the property taxes begin for these companies by three years. Troutdale's share of the abated property taxes over three years will be approximately $1 million total. In return for that $1 million, if FEDEX comes to this site, FEDEX will be constructing an $80-100 million facility with estimated employment of 1000 jobs at the end of three to five years. That's a good trade-off.
In the past as well as right now, there will be NO tax dollars coming from the Reynolds site. But but with an EZ, after the tax abatement period ends, an estimated $1.3 million in tax revenue will be generated for all taxing districts. Troutdale's share of this: $383,000 per year. ZERO tax revenue in the past, now and for three to five more years. With an EZ: at the end of the tax abatement period, $383k per year for Troutdale as long as FEDEX remains.
Without an EZ, the Reynolds site could be filled with warehouses, with only 3-4 jobs per acre at low wages.(look at Airport Way, Marine Drive). With an EZ and minimum criteria: 1000 jobs (about 14 per acre), jobs which will be 150-200% of minimum wage and with good benefits.
Are there any guarantees? No. But lets face it, whether or not we like property tax abatement, it's a fact that Troutdale is dealing with an extremely competitive economic development environment. Other cities in the Metro area have EZ's. East Multnomah County has not been competitive in job creation. This EZ gets us on a level playing field.
Some people have said companies might come to the Reynolds site without an EZ. Maybe that's true, maybe it's not true. But FEDEX has expressed interest. They've already had a pre-application conference with the city. This deal is on the table now. I'll take real interest and good chances of success versus pie in the sky any day.
I've gone from being for and against the creation of this EZ on a daily basis for the last two weeks. But when I narrow it down to what's best for Troutdale, and after looking at all the issues from both the positive and negative side, I made the judgement that the EZ is what's best for Troutdale. So did a wide majority of the rest of the city council by a 5-2 vote. A majority of the citizens that came to the pubic hearing last night agreed with us. 1000 new jobs is worth the effort.
Jul 10, 2007
Public Hearing Tonight re: FEDEX Tax Break
Tonight the Troutdale city council is holding a public hearing regarding the creation of an Enterprise Zone at the old Reynolds Metals site.The reason we're considering this? FEDEX asked the city for tax breaks of approx. $4 million for a proposed new distribution facility.
I'm going into the meeting in an undecided frame of mind. Although two weeks ago I was leaning in favor of the tax break, now I'm not so sure. There is a lack of evidence one way or another showing that tax abatements in the form of Enterprise Zones are worth it in the long run. Balance that lack of evidence with a proposal by FEDEX to bring 500-1000 jobs into the area.
Download a copy of tonight's agenda packet here. Come to the meeting and tell us your opinion of this proposed tax break. 7pm. Troutdale City Hall, 104 SE Kibling. Here's a map of the location.
I'm going into the meeting in an undecided frame of mind. Although two weeks ago I was leaning in favor of the tax break, now I'm not so sure. There is a lack of evidence one way or another showing that tax abatements in the form of Enterprise Zones are worth it in the long run. Balance that lack of evidence with a proposal by FEDEX to bring 500-1000 jobs into the area.
Download a copy of tonight's agenda packet here. Come to the meeting and tell us your opinion of this proposed tax break. 7pm. Troutdale City Hall, 104 SE Kibling. Here's a map of the location.
Jul 6, 2007
Word on the Troutdale Street: No Tax Break For FEDEX
Tonight was Troutdale's First Friday Art Walk. It was a beautiful night and there was a good turnout. The Mrs. and I got the chance to talk with familiar friends and met some new folks. The subject of a tax break for a proposed FEDEX facility at the old Reynolds Aluminum plant was the main theme of conversation tonight.
Although obviously not a scientific poll, most folks we talked to were either very skeptical or outright opposed to giving a tax break to FEDEX. Some of the comments we heard:
"Why should FEDEX get a tax break when none of our other businesses got one?"
"What makes FEDEX so special?"
"The city council just finished thrashing the Port of Portland about putting an intermodal rail yard there because it would mean 1000 more trucks per day through Troutdale. How do they think FEDEX will ship these packages? By bicycle?"
"How do we know FEDEX would hire Troutdale residents? How many Troutdale residents have a commercial driver license and can afford to buy a truck?" (FEDEX ground drivers are independent contractors and own their trucks)
"Why shouldn't the Port of Portland give FEDEX money to pay for property taxes if its such a good deal? This deal looks good for FEDEX, the Port of Portland, everyone but Troutdale".
"What's the hurry to decide? Can't this go to the voters?"
"Just because a business has its hand out doesn't mean the city has to pay out."
You know what? I didn't have many answers to these questions. I appreciated the input from folks on the street tonight. I hope they show up Tuesday night to the city council's public hearing on the proposed tax break for FEDEX. The rest of the city council needs to hear from them in person, too.
Although obviously not a scientific poll, most folks we talked to were either very skeptical or outright opposed to giving a tax break to FEDEX. Some of the comments we heard:
"Why should FEDEX get a tax break when none of our other businesses got one?"
"What makes FEDEX so special?"
"The city council just finished thrashing the Port of Portland about putting an intermodal rail yard there because it would mean 1000 more trucks per day through Troutdale. How do they think FEDEX will ship these packages? By bicycle?"
"How do we know FEDEX would hire Troutdale residents? How many Troutdale residents have a commercial driver license and can afford to buy a truck?" (FEDEX ground drivers are independent contractors and own their trucks)
"Why shouldn't the Port of Portland give FEDEX money to pay for property taxes if its such a good deal? This deal looks good for FEDEX, the Port of Portland, everyone but Troutdale".
"What's the hurry to decide? Can't this go to the voters?"
"Just because a business has its hand out doesn't mean the city has to pay out."
You know what? I didn't have many answers to these questions. I appreciated the input from folks on the street tonight. I hope they show up Tuesday night to the city council's public hearing on the proposed tax break for FEDEX. The rest of the city council needs to hear from them in person, too.
Jimmy Hoffa's "I Hate FEDEX" blog
Check it out at fedexwatch.com.
For an opposing viewpoint about the Teamsters and UPS, see "The Future of the Union Movement: Clues From the UPS Strike" at fee.org.
Also: See " FedEx Ground vs. UPS: Two Worldviews" from braunconsulting.com.
For an opposing viewpoint about the Teamsters and UPS, see "The Future of the Union Movement: Clues From the UPS Strike" at fee.org.
Also: See " FedEx Ground vs. UPS: Two Worldviews" from braunconsulting.com.
FEDEX Drives Memphis Commercial Real Estate Market
"Thanks to FedEx - the company itself along with the companies that occupy distribution centers near its hub at Memphis International Airport - the local industrial real estate market registered another strong year. From June 2006 to May 2007, industrial real estate recorded $510.3 million in sales, up from $339.8 million the previous year, according to Chandler Reports, www.chandlerreports.com."
Read the rest at the Memphis Daily News website.
Jul 5, 2007
Enterprise Zone Study: Slower Growth Than Non-EZ Zones
Comparison of growth rates between cities with and without enterprise zones shows that cities with enterprise zones grew at a slower rate than cities without enterprise zones, according to a recent study by the Center for Urban Studies at Portland State University. Data in the study shows that cities without enterprise zones grew by 41 percent, compared to 22.5 percent for cities with enterprise zones.
The study, Oregon Enterprise Zone Tax Abatement Economic Development Study and Urban Renewal Study (Hall, Rufolo, Dong), also asserts the following:
FedEx is looking to construct a $100 million distribution center in Troutdale, a development that could hinge on whether the city gives the company a multimillion-dollar tax abatement via what's known as an enterprise zone. I've discussed this proposed enterprise zone previously.
To read about the estimated amount of tax abated, click here.
To read about happened at the joint City of Troutdale/City of Fairview city council work session, click here.
Be sure to read Fairview city councilor Quinby's comment about that joint work session here.
Click here for a Google search with keywords TROUTDALE and FEDEX.
Click here for a Google NEWS search with keywords TROUTDALE and FEDEX.
FEDEX or no FEDEX, the most important factor to consider remains: What's best for Troutdale?
The study, Oregon Enterprise Zone Tax Abatement Economic Development Study and Urban Renewal Study (Hall, Rufolo, Dong), also asserts the following:
- Within Enterprise Zones, the impact of the tax abatement on employment seems to be very limited. "The cost per job created appears to be relatively high, and this cost comparison is based on the questionable assumption that none of the employment growth would have taken place without the abatements."
- Surveys show that tax abatement has limited influence on employer location decisions. ,". . .In fact, Dowall(1996) found that only 23 percent of firms participating in the California Enterprise Zone Program reported that program incentives influenced their location decisions. "
- "With the passage and implementation of Ballot Measures 5 and 50, tax abatements result in a direct revenue loss for local taxing entities."
- "There are existing local economic conditions relating to land costs, transportation infrastructure, labor, financing, and regulatory practices that tax incentives cannot overcome"
- "For local taxing districts, after providing services without corresponding increases in revenues during the (tax) exemption period, the ability to generate revenues is substantially lower than what is suggested by initial investment values."
FedEx is looking to construct a $100 million distribution center in Troutdale, a development that could hinge on whether the city gives the company a multimillion-dollar tax abatement via what's known as an enterprise zone. I've discussed this proposed enterprise zone previously.
To read about the estimated amount of tax abated, click here.
To read about happened at the joint City of Troutdale/City of Fairview city council work session, click here.
Be sure to read Fairview city councilor Quinby's comment about that joint work session here.
Click here for a Google search with keywords TROUTDALE and FEDEX.
Click here for a Google NEWS search with keywords TROUTDALE and FEDEX.
FEDEX or no FEDEX, the most important factor to consider remains: What's best for Troutdale?
Jun 22, 2007
Troutdale/FEDEX Tax Break Estimate: $2-6 Million
If the new FEDEX distribution center provided 750 jobs, $2-6 million of tax abatements would translate to about $2600 to $8,000 per job.
In a follow up to Troutdale's discussion on providing tax breaks to a proposed FEDEX move to the old Reynolds Metals site, The Tax Supervising and Conservation Commission (TSCC) just issued a "City of Troutdale Enterprise Zone Tax Abatement Analysis". The TSCC stated that, "It should be noted that these are very rough estimates based on limited information. The actual property taxes that would be abated could vary by as much as 20 percent from what is presented in this analysis."
Here are the TSCC numbers:
Tax Abatement, Valued as Industrial:
Three Year EZ Exemption Period; $ 4,008,817
Five Year EZ Exemption Period; $ 6,624,773
Tax Abatement, Valued as Commercial:
Three Year EZ Exemption Period; $ 2,132,991
Five Year EZ Exemption Period; $ 3,663,767
In a follow up to Troutdale's discussion on providing tax breaks to a proposed FEDEX move to the old Reynolds Metals site, The Tax Supervising and Conservation Commission (TSCC) just issued a "City of Troutdale Enterprise Zone Tax Abatement Analysis". The TSCC stated that, "It should be noted that these are very rough estimates based on limited information. The actual property taxes that would be abated could vary by as much as 20 percent from what is presented in this analysis."
Here are the TSCC numbers:
Tax Abatement, Valued as Industrial:
Three Year EZ Exemption Period; $ 4,008,817
Five Year EZ Exemption Period; $ 6,624,773
Tax Abatement, Valued as Commercial:
Three Year EZ Exemption Period; $ 2,132,991
Five Year EZ Exemption Period; $ 3,663,767
Jun 20, 2007
Troutdale Shouldn't Be Rushed By FEDEX
FEDEX is considering Troutdale's old Reynolds Metals site for a major shipping hub. FEDEX is also pressuring Troutdale for a decision on significant tax breaks by the end of this month. As I mentioned earlier, we discussed these potential tax breaks in a joint work session with the Fairview City Council.
As reported in the Gresham Outlook, "FedEx planners have inquired about “financial assistance” in talks with officials from the state of Oregon, Port of Portland and Troutdale. . ."
What should Troutdale do? Number one, we should slow down. There's no reason to rush into a decision. If FEDEX can't wait for Troutdale to do some due diligence, some public meetings, and a deeper look into all the implications of a major tax break, they're probably not serious about locating in Troutdale anyway.
We had a joint work session with the Fairview City Council. Although this was just an "information gathering" session, it was in reality a lobbying effort by Port of Portland and State of Oregon representatives to persuade us to create an enterprise zone. They didn't come out to Troutdale just for chitchat. The tone of the meeting was clearly "which flavor ice cream would you like", and not "this is how we make the ice cream".
I did some research on property tax exemptions, enterprise zones, and FEDEX over the weekend. I'm won't go into details in this post. (Check out Google searches on FEDEX and property tax exemption, or FEDEX and enterprise zones yourself).
Based on what I've read, apparently FEDEX's policy is to never, ever pay local property taxes. And they usually get their way. But does that mean Troutdale should give them a tax exemption? Maybe yes, maybe no. What's in Troutdale's best interest?
I resent being pressured by FEDEX, the Port of Portland, and the State of Oregon into making a quick, uninformed decision. Personally, I'm not in favor of making a decision on tax exemptions for FEDEX or anyone else until we can get all our questions answered, and until we can put a finger on the true costs of a tax exemption. How many jobs? What's the total dollar figure for exempted tax? Is it worth it? Do we want to basically pay $50-100k (just a number, I don't know the actual figure, that's the problem) per job? How is that fair to existing Troutdale businesses?
We also need public input. After all, a significant amount of taxpayer dollars are on the table. This doesn't just affect Troutdale. Property tax breaks would also affect local schools, our library system, just go down the big tax list on your property tax bill.
Realize this: the Reynolds Metals property is one of the last undeveloped pieces of industrial land in Multnomah County. So what's the rush? There's obviously demand for industrial land right now. Why ask the first girl we dance with for her hand in marriage?
The Troutdale City Council will discuss this again in a work session following the regular city council meeting on June 26. Want to attend? The regular meeting will be at 7pm, Troutdale City Hall, 104 SE Kibling Ave. The work session will be immediately after the regular meeting. Get involved in your local government!
As reported in the Gresham Outlook, "FedEx planners have inquired about “financial assistance” in talks with officials from the state of Oregon, Port of Portland and Troutdale. . ."
What should Troutdale do? Number one, we should slow down. There's no reason to rush into a decision. If FEDEX can't wait for Troutdale to do some due diligence, some public meetings, and a deeper look into all the implications of a major tax break, they're probably not serious about locating in Troutdale anyway.
We had a joint work session with the Fairview City Council. Although this was just an "information gathering" session, it was in reality a lobbying effort by Port of Portland and State of Oregon representatives to persuade us to create an enterprise zone. They didn't come out to Troutdale just for chitchat. The tone of the meeting was clearly "which flavor ice cream would you like", and not "this is how we make the ice cream".
I did some research on property tax exemptions, enterprise zones, and FEDEX over the weekend. I'm won't go into details in this post. (Check out Google searches on FEDEX and property tax exemption, or FEDEX and enterprise zones yourself).
Based on what I've read, apparently FEDEX's policy is to never, ever pay local property taxes. And they usually get their way. But does that mean Troutdale should give them a tax exemption? Maybe yes, maybe no. What's in Troutdale's best interest?
I resent being pressured by FEDEX, the Port of Portland, and the State of Oregon into making a quick, uninformed decision. Personally, I'm not in favor of making a decision on tax exemptions for FEDEX or anyone else until we can get all our questions answered, and until we can put a finger on the true costs of a tax exemption. How many jobs? What's the total dollar figure for exempted tax? Is it worth it? Do we want to basically pay $50-100k (just a number, I don't know the actual figure, that's the problem) per job? How is that fair to existing Troutdale businesses?
We also need public input. After all, a significant amount of taxpayer dollars are on the table. This doesn't just affect Troutdale. Property tax breaks would also affect local schools, our library system, just go down the big tax list on your property tax bill.
Realize this: the Reynolds Metals property is one of the last undeveloped pieces of industrial land in Multnomah County. So what's the rush? There's obviously demand for industrial land right now. Why ask the first girl we dance with for her hand in marriage?
The Troutdale City Council will discuss this again in a work session following the regular city council meeting on June 26. Want to attend? The regular meeting will be at 7pm, Troutdale City Hall, 104 SE Kibling Ave. The work session will be immediately after the regular meeting. Get involved in your local government!
Jun 13, 2007
Troutdale Economic Development Update
The Troutdale and Fairview City Councils held a joint work session last night to explore the use of Enterprise Zones (EZ) as a potential economic development tool for use in marketing industrial zoned land in the two cities. In Oregon, Enterprise Zones offer qualified businesses exemptions from local property tax liability on new capital investments for a minimum of three years. For more information on Enterprise Zones, see the State of Oregon website.
Last night, the Troutdale City Council voted unanimously to pay approx. $200k to Wells Development for the construction of a public parking lot as part of the "Discovery Block" (aka the Marino Block) project in downtown Troutdale. In return for the $200k, the city will gain title to the parking lot when construction is completed. This is good news. This block has been a festering boil of blight since a fire burned most of the block to smithereens in 2002. Word on the street says construction could begin as soon as August.
The city council also voted to add $18,000 to the budget for a proposed economic development position which would be jointly funded by a group of government agencies: The cities of Troutdale, Fairview, Wood Village, Cascade Locks, and Multnomah County. Details for the new position, which will operate out of the West Columbia Gorge Chamber of Commerce, still need to be worked out regarding terms and conditions, lines of authority, priorities and accountability, etc. No word yet on whether Multnomah County is even interested in providing an estimated $50k for this position. The position won't be established unless all the players pony up some of their government cash.
I have deep reservations about this position. Very deep. For instance, the cities will not have direct authority but only "advisory input". The cities and the county, who will put up the cash, won't be the ones with the direct decision making power. That's crazy and wrong. But I'm only one vote, and the bandwagon for this position was apparently too shiny, too sparkly for the rest of the city council. As they say in the movies, "I've got a bad feeling about this. . ."
Last night, the Troutdale City Council voted unanimously to pay approx. $200k to Wells Development for the construction of a public parking lot as part of the "Discovery Block" (aka the Marino Block) project in downtown Troutdale. In return for the $200k, the city will gain title to the parking lot when construction is completed. This is good news. This block has been a festering boil of blight since a fire burned most of the block to smithereens in 2002. Word on the street says construction could begin as soon as August.
The city council also voted to add $18,000 to the budget for a proposed economic development position which would be jointly funded by a group of government agencies: The cities of Troutdale, Fairview, Wood Village, Cascade Locks, and Multnomah County. Details for the new position, which will operate out of the West Columbia Gorge Chamber of Commerce, still need to be worked out regarding terms and conditions, lines of authority, priorities and accountability, etc. No word yet on whether Multnomah County is even interested in providing an estimated $50k for this position. The position won't be established unless all the players pony up some of their government cash.
I have deep reservations about this position. Very deep. For instance, the cities will not have direct authority but only "advisory input". The cities and the county, who will put up the cash, won't be the ones with the direct decision making power. That's crazy and wrong. But I'm only one vote, and the bandwagon for this position was apparently too shiny, too sparkly for the rest of the city council. As they say in the movies, "I've got a bad feeling about this. . ."
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