OAR 123-650-4800: Temporary rule language in effect until 12/01/2026. Local Resolutions and Zone Options

For purposes of city, port or county resolutions under this chapter, including but not limited to resolutions to designate, re-designate or amend an enterprise zone; and resolutions to enter into an agreement with a business firm for an exemption for qualified property: (1) In the case of designation or re-designation, the resolution by a Sponsoring Government shall be adopted only: (a) After establishment of school support fee rate(s) in OAR 123-650-5300; and (b) At least seven days after the meeting described in OAR 123-650-5100. (2) Resolutions adopted pursuant to this chapter shall: (a) Acknowledge all other cosponsoring parties to the re-/designation or boundary change, if any; (b) Declare that the sponsor will (jointly) fulfill duties under ORS 285C.050 to 285C.250, including but not limited to observing ORS 285C.105 in accordance with OAR 123-668; (c) Clarify that the zone does not compromise or override prevailing zoning, regulatory and permitting ordinances, processes or restrictions, or affect acknowledged comprehensive plans for land use; (d) As deemed significant or appropriate by the sponsoring government, affirm goals in having the zone, recount zone history, underscore key characteristics of the re-/designation or boundary change, or report actions taken for purposes of public involvement, including but not limited to the nature and outcome of communication or interaction with local taxing districts; and (e) Stipulate any election or restriction for hotel/resort eligibility under ORS 285C.070 by cities and counties, so that a business operating a hotel, motel or destination resort is eligible under ORS 285C.135(5)(c) in the enterprise zone or in restricted parts of the zone, for which: (A) Any such election or restriction must be reflected in the resolution(s) (jointly) adopted by each sponsoring city or county and by any consenting city or county affected by a restriction. (B) Any restriction makes such businesses eligible in those parts of the zone throughout the incorporated area of the city or unincorporated area of the county, to which the restriction pertains, which may be a city or county merely consenting to the zone. (C) With a boundary change, a positive hotel/resort election or restriction may not be made, but the jurisdiction of a city or county newly joining or consenting to an enterprise zone may be excluded from an existing hotel/resort election, and any such negative restriction may not be revised once the boundary change takes effect. (D) In the case of re-/designation, cities and counties may (jointly) revise an election, restriction or lack of one, regardless of what is in the resolution(s) of re-/designation, by resolution(s) adopted not more than six months after the effective date of re-/designation. (E) A prior election or restriction for hotel/resort eligibility does not carry over to any re-designation, such that hotel/resorts are ineligible (based on the date of application for authorization) throughout any newly re-designated zone without a positive election or restriction as described in this subsection. (f) If opted for, identify priority industry(ies) in local or regional economic development strategies as authorized by ORS285C.135(1)(b). (g) If opted for, allow by agreement an exemption period up to 10-years under ORS 285C.160(2)(b)(B) for a business firm that demonstrates their project involves substantial capital investment, regional economic impact or alignment with local development goals as described in OAR 123-674-0500(6). (h) Zone sponsors may establish in the resolution certain minimum standards including but not limited to capital investment, economic contribution, or local development requirements the business firm is required to meet to be eligible for the allowed an extended abatement period. (i) If opted for, establish a pilot program to allow for eligible business activities under ORS 285C.135(3)(b) and consistent with OAR 123-662-2100. (A) The resolution shall identify the allowable business activities that are described in 285C.135(2) that would otherwise be ineligible. (B) The resolution must establish that the allowed business activity will provide a substantial community benefit, innovation or alignment with local economic development goals as described in OAR 123-662-2100. (C) The resolution may establish pilot program components including but not limited to: (i) Pilot program duration (ii) Limitations of extended exemption period (iii) Any other local requirements related to authorization and approval (j) If opted for, zone sponsors may establish zone-specific minimum thresholds for alternative performance criteria as described in OAR 123-674-0300(2)(b). (3) The sponsor of an enterprise zone that has an existing hotel/resort election may at any time revoke that election in its entirety or in a particular city or county jurisdiction (thereby effecting a restriction elsewhere), irreversibly for the remainder of the enterprise zone’s current period of designation, but: (a) For a zone with two or more cosponsors, the revocation must be consistently expressed in resolutions adopted by all of them, including but not limited to any port; and (b) Copies of the resolution(s) of such revocation must be submitted to the Department to establish its effective date in terms of subsequent applications for authorization by relevant business firms.