Oregon
Rule Rule 123-674-1700
Headquarter Facilities


For purposes of ORS 285C.135 (Requirements for eligibility)(5)(b):

(1)

A Firm/applicant and its operations are eligible, regardless of retail, financial, professional or other such ineligible activities, if:

(a)

The business is operating substantially at two or more locations including at least one place outside of the enterprise zone;

(b)

The operations in the zone support and serve the firm’s other operations or commercial pursuits throughout this state or throughout a multiple-state or larger region; and

(c)

In approving the Application, the local zone manager includes on behalf of the sponsor pursuant to the Preauthorization Conference under ORS 285C.140 (Application for authorization)(7) a formal finding that:

(A)

Describes how the proposed investment and the business firm will satisfy subsections (a) and (b) of this section, including indications of applicable services, relevant region and the relationship among intra-firm operations; and

(B)

Asserts that the proposed investment is significant for the enterprise zone and the local economy, succinctly explaining the reasons for this significance, such as the size of proposed operations relative to local measures of commerce, special job opportunities, diversification, strategic, marketing or visibility objectives of the zone, or other impacts.

(2)

As required under ORS 285C.180 (Qualified property generally)(2)(g), the business firm may not qualify for the exemption under ORS 285C.175 (Enterprise zone exemption), if the actual investment in qualified property does not substantively correspond to what was proposed in or with the Application. In determining if an actual investment is significantly inconsistent with such descriptions, relevant factors for the zone sponsor and county assessor to consider may include but are not limited to:
(a) Is total cost of investment comparable to estimated costs? …, which under ORS 285C.185 (Minimum cost of qualified property)(2) is a matter only of relative amounts;
(b) Is the configuration and size of building(s) similar to what was communicated or documented? …;
(c) Did the timing of construction and installation of machinery & equipment approximate what was anticipated? …;
(d) Will the facility undertake basically the same administrative, engineering or other (professional service) functions as proposed and otherwise fulfill the finding pursuant to paragraph (1)(c) of this rule? …; or
(e) Is facility employment for purposes of section (4) of this rule like what was predicted?

(3)

The local zone manager shall include the formal finding as part of the approved Application and may modify it prior to an authorized business firm qualifying for the exemption, consistent with an amendment in OAR 123-674-3200 (Amending the Application/Authorization).

(4)

For purposes of OAR 123-674-4000 (EMPLOYMENT OF FIRMS — Computation of Averages) to 123-674-4800 (Sale or Leasing of Exempt Property), as provided under ORS 285C.200 (Qualifications of business firm)(7)(b)(B), only the employees working at a facility described in this rule are counted consistent with OAR 123-674-0200 (General Employment Terminology and Issues)(3)(a), and as such, employees of the firm that are transferred to the facility from locations already in the zone may count toward the facility’s requisite increase in employment.
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Last accessed
Aug. 8, 2020