Oregon Secretary of State

Oregon Business Development Department

Chapter 123

Division 650
ENTERPRISE ZONE CREATION AND AMENDMENT

123-650-4600
Additional Issues with Boundary Changes

With respect to any enterprise zone boundary change under ORS 285C.115:

(1) Usable land described in section (2) of this rule must comprise:

(a) At least 25 percent of what is added (except as specially allowed by the Department); and

(b) None of what is removed (except in the case of a concurrent boundary change or re-/designation that would presently place such land in another enterprise zone).

(2) Usable land for purposes of section (1) of this rule includes sites with qualities respective to eligible business firms under ORS 285C.130, such as being:

(a) Zoned outright for uses germane to such firms consistent with an acknowledged comprehensive land use plan or expected amendments to the plan;

(b) Free of serious impediments to development and use due to cultural or environmental concerns or regulations;

(c) Served or realistically serviceable with infrastructure, road access, utilities and so forth that are at least potentially adequate for such firms’ operations; and

(d) Vacant or physically available for substantial new business occupancy, expansions or improvements.

(3) The changes must retain (never remove):

(a) One half of the land or actual area comprising the original enterprise zone; or

(b) Any site identified as the location for proposed qualified property in an application for authorization that is or will be approved and was submitted before the boundary change took effect, and that is neither inactive under ORS 285C.165 nor fully utilized for exemptions under ORS 285C.175.

(4) If a site containing (proposed) operations or qualified property of an eligible business firm described in subsection (3)(b) of this rule, as well as any qualified business firm, is nevertheless removed by a boundary change, then such a firm shall enjoy the same protection under ORS 285C.245(1)(a) for that location, as if it were inside a terminated enterprise zone, in accordance with OAR 123-674-8100(4).

(5) An enterprise zone as amended must still adhere to OAR 123-650-0500 to 123-650-1100. For example with respect to OAR 123-650-0700, if modification of a local, state or federal definition or delineation causes a previously existing regional or metropolitan urban growth boundary to intersect an existing rural zone, subsequent changes to that zone boundary may not add area that was within the former regional or metropolitan urban growth boundary as it existed before intersecting the zone.

(6) A city, port or county that previously consented to include territory inside the zone does not need to be involved with a boundary change that adds area only outside of its jurisdiction, but it does need to consent again in order for any more of its territory to be included in the zone.

(7) Neither such a change nor any comparable procedure allows a sponsoring city, port or county government, to:

(a) Make hotel/resort businesses eligible unless such firms are eligible in the zone already, even in the case of a new city or county cosponsor that is joining the zone; or

(b) Renounce, rescind or terminate its existing sponsorship and inclusion in the zone, which is possible only by termination of the entire zone under ORS 285C.245 or by dissolution of the jurisdiction.

Statutory/Other Authority: ORS 285A.075, 285C.060(1) & 285C.066
Statutes/Other Implemented: ORS 285C.050, 285C.060, 285C.066, 285C.115 & 285C.117
History:
OBDD 12-2020, amend filed 08/12/2020, effective 08/12/2020
OBDD 15-2015, f. & cert. ef. 11-12-15


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