Rule Rule 123-668-2500
Additional Conditions in an Urban Zone

For purposes of additional conditions imposed on eligible business firms by the sponsor of an urban enterprise zone under ORS 285C.150 (Conditions required by sponsor for authorization):


The sponsor of the enterprise zone shall abide by OAR 123-668-2000 (REQUIREMENTS ON BUSINESSES — Applicable Situations) to 123-668-2400 (Zone Sponsor Policies).


“Groups of persons” as used in ORS 285C.150 (Conditions required by sponsor for authorization)(2) may comprise the general populace or labor force or any lesser number of persons, who may not be explicitly defined in terms of geography/residency.


When approving the application for authorization as indicated in OAR 123-674-2300 (Initial Processing by Local Zone Manager)(7), the sponsor of an urban zone must include information that lists and clearly explains the specific additional conditions to which the firm is committing, or to which it may be obligated under certain contingencies, in order to effect and enforce compliance.


The written information as described in section (3) of this rule shall appear in a standardized format that conforms to the policy that the zone sponsor has adopted for imposition of such additional conditions, and that is used for all eligible business firms authorized in that urban enterprise zone, including but not limited to a standard performance contract to which firms agree.


Failure by a firm to satisfy such additional local conditions of an urban zone may affect the exemption in the following ways:


Denial of the authorization under ORS 285C.140 (Application for authorization)(2)(e), but only if the firm does not formally commit to meet the conditions;


Refusal of initial qualification for exemption under ORS 285C.175 (Enterprise zone exemption); or


Disqualification of an ongoing exemption in accordance with ORS 285C.240 (Disqualification)(1)(d), except as provided under 285C.240 (Disqualification)(6).


The county assessor has an obligation to effect actions described in subsection (5)(b) or (c) of this rule only insofar as the zone sponsor has provided timely and written evidence of such failure.


An eligible business firm shall have the same rights of appeal as provided elsewhere in ORS 285C.050 (Definitions for ORS 285C.050 to 285C.250) to 285C.250 (Redesignation or designation of new zone following zone termination) for authorization and receipt of the enterprise zone exemption.


The policy and standards adopted by the sponsor affect only proposed investments for which an eligible business firm applies for authorization after the date of adoption.


The sponsor may impose the additional conditions only pursuant to a policy and standards, such that:


The policy entails the adoption by the zone sponsor of formal documentation outlining the sponsor’s purposes, process, factors of consideration and so forth; and


The policy contains standards consisting of established and transparent measures, methods or criteria to implement the policy and define the conditions, as well as specific consequences for the firm’s failure to satisfy those conditions.


Any imposed additional condition must relate in some way to employment opportunities for one or more groups of persons, through:


Actions by the eligible business firm;


Use of funds or resources from the firm;


Other efforts supported by the firm; or


Other means, for which the result is employment-related benefits for groups of persons, consistent with 47 OTR 557 (TC 4167, 1999, Regular Division of the Oregon Tax Court).


Only urban zone sponsors that have established and implemented a policy and standards described in this rule shall submit a report under ORS 285C.150 (Conditions required by sponsor for authorization)(6), on or about the anniversary date of the policy’s adoption every four years, through the offices of the State Senate President and the Speaker of the Oregon House of Representatives. The sponsor shall also provide a copy of the report to the Department, as well as to the chairs of relevant legislative committees as appropriate.
Last accessed
Nov. 25, 2020