Oregon
Rule Rule 123-668-2300
Reasonableness


This rule offers guidance for evaluating whether local additional enterprise zone requirements are reasonable, such that:

(1)

The requirements shall not vary dramatically or erratically over time for business firms interested in investing in the zone and seeking special benefits or waivers.

(2)

The requirements shall not be arbitrarily applied, implemented or enforced, in that the sponsor shall be consistent in not only setting conditions, but also in how to handle compliance issues.

(3)

The requirements may differentiate among relevant business firms for a given situation as described in OAR 123-668-2000 in terms of investment size, the firms industry and so forth, but such differentiation shall be:

(a)

Based on definable characteristics;

(b)

Consistently applied in its own regard; and

(c)

Related to an apparent or expressed public purpose.

(4)

The requirements may entail economic costs to the firm because of payments to the sponsor or other entities, or of actions undertaken by the firm, but these costs (less any other consequent benefit to the firm) in relation to OAR 123-668-2000(2)(b) or (c) shall not exceed one-third of the tax savings associated with the entire property tax abatement. With a written agreement, however, in the case of OAR 123-668-2000(1) or (2)(a) the firm may accept higher costs based on its own considerations.

(5)

The requirements shall not demand procedures, practices or investments in excess of anything undertaken in the firms industry or related industries throughout the world, such that the sponsor shall be prepared to show that such a demand has been accomplished in the normal course of business elsewhere without apparent, extenuating circumstances.

(6)

No requirement may cause or compel actions by the firm that have the potential to pose a significant other legal, financial or business threat to the firm, including but not limited to:

(a)

Surrendering significant rights, privileges or immunities under state or federal law;

(b)

Labor relations that may compromise practices by the firm in other locations where it operates in the United States; or

(c)

The release of information that is proprietary, confidential or otherwise threatening to the firms market competitiveness or contractual obligations or that of any third party.

(7)

The criteria in this rule will typically concern a zone sponsors underlying policy, hence the recommendations in OAR 123-668-2400 for deliberate and explicit policy-making to cover certain potentialities.
Source
Last accessed
Aug. 21, 2019