Or. Admin. R. 123-690-2000 - LOCAL APPROVAL - Written Agreement

For purposes of the written agreement between a business firm and the sponsor of the rural enterprise zone under ORS 285C.403(3)(c) and (d):

(1) The agreement shall consist at a minimum of the following:

(a) Acknowledgment of the planned or pending application for certification under ORS 285C.403(1) and (2);

(b) Concise description of the firm's proposed investments, Facility Site and workforce;

(c) Specification of the obligations that the proposed investments and workforce must satisfy under ORS 285C.412, which the agreement in no way supersedes;

(d) Identification of all the parties to the agreement and their representatives;

(e) Zone sponsor's explicit approval for the firm to receive the exemption under ORS 285C.409 on qualifying facility property;

(f) The sponsor's statement as to the number of consecutive tax years that will comprise the period of exemption beginning after facility property is placed in service, which is not less than 7 and not more than 15 years, but which is only 7 years if the agreement is silent about the period of exemption. The agreement may also provide that the exemption period, at the election of the business firm or upon fulfillment of a certain local additional condition or criterion:

(A) Expires prematurely after at least seven years but before the stated number of years, such that the firm does not henceforth need to comply further with any statutory or local additional requirement; or

(B) Extends a certain number of years beyond the stated number of years, but not more than 15 years in total; and

(g) With respect to additional conditions or requirements by the zone sponsor under ORS 285C.403(2)(e) and (3)(c), either:

(A) Indication that the sponsor is not imposing or requesting any such condition or requirement; or

(B) Specification of any such condition or requirement, in accordance with OAR 123-668, including but not limited to standards and methods for demonstrating satisfaction of the condition or requirement, as well as consequences of noncompliance, such that the business firm expressly acknowledges when noncompliance would entail retroactive disqualification of the exemption, termination of the remaining exemption period or an alternative consequence.

(2) The agreement may be:

(a) Part of a broader accord involving parties other than the business firm and the sponsor, insofar as the accord still conforms to section (1) of this rule.

(b) Preapproved or subsequently authorized by resolution or by other means of the zone sponsor, or of each cosponsor, consistent with OAR 123-668-2400 and 123-668-2450.

(3) An authorized representative or representatives of the business firm and of the zone sponsor must execute the agreement:

(a) On or after the effective date on which:

(A) The zone is designated or some or all of the Facility Site is amended into the zone through a change in the boundary of the zone; and

(B) The county containing the Facility Site satisfies definitions under ORS 285C.400(3) or (5) in accordance with OAR 123-690-0500; and

(b) Before:

(A) The zone has terminated; or

(B) The county becomes ineligible due to the opposite effect of paragraph (a)(B) of this section.

(4) The sponsor shall provide a copy of the signed and dated written agreement to the Department, which shall review the agreement, and if the following are accurate, the Department shall issue a letter for attachment to the written agreement confirming that:

(a) On the date of its execution it effectively satisfied section (3) of this rule, and one party to the agreement is the sponsor of the rural enterprise zone; and

(b) The agreement appears to satisfy section (1) of this rule.

(5) Following the effective date of the enterprise zone's termination, the agreement may not be substantially modified, replaced, amended, supplemented or terminated.

Notes

Or. Admin. R. 123-690-2000

OBDD 29-2010, f. & cert. ef. 6-14-10; OBDD 11-2015, f. & cert. ef. 10/5/2015; OBDD 5-2017, amend filed 11/29/2017, effective 11/29/2017

Statutory/Other Authority: ORS 285A.075

Statutes/Other Implemented: ORS 285C.403, 285C.406 & 285C.409