Port to consider building manufacturer for enterprise zone

Worldwide Structures Property Company LLC is requesting a tax abatement in an extended enterprise zone to be considered by The Port of The Dalles Commissioners on July 22. The company is proposing to build a 35,000 square-foot-facility at 3855 River Road. The manufacturing building will be used to modify building materials, assemble all components of a completed home and some commercial structures, and ship the building to site.

The Port of The Dalles will hold a special Board of Commissioners meeting on July 22 to consider an extended enterprise zone for Worldwide Structures Property Company LLC. The company intends on building a 35,000-square-foot manufacturing plant at 3855 River Road and is asking for a five-year tax abatement via an enterprise zone.

The virtual meeting will be held at 12 p.m. To attend the meeting, send a request to receive the meeting connection details to admin@portofthedalles.com

Staff is recommending approval of the Wasco County Joint Enterprise Zone Extended Abatement Agreement with Worldwide Structures Property Company as presented.

The following information was included in the recent Port of The Dalles Commission agenda and packet made available this morning, July 16.

SUBJECT: Wasco County Joint Enterprise Zone Application: Worldwide Structures

TO: PORT OF THE DALLES COMMISSION
FROM: MATTHEW KLEBES, ENTERPRISE ZONE MANAGER DATE: 7/15/2020

BACKGROUND INFORMATION:

Enterprise Zones in the State of Oregon exempt eligible businesses from local property taxes on new investments for a specified amount of time. Businesses commit to creating new jobs and, dependent on the length of abatement, commit to certain wage and compensation thresholds as well as other local requirements.

Wasco County, City of The Dalles, and Port of The Dalles sponsored the Wasco County Joint Enterprise Zone in 2018. On June 12, 2020 Worldwide Structures Property Company LLC submitted a completed application requesting an extended abatement option for a total of 5 years. They intend to build a new 35,000 square feet facility located at 3855 River Road, The Dalles, OR 97058. The company intends to use the facility to modify building materials, assemble all components of a completed home and some commercial structures, and ship the building to site.

Carrie Pipinich and Matthew Klebes (Zone Managers) along with Jill Amery, Tax Assessor met with representatives of the company on July 1, 2020 to review the provisions of an enterprise zone agreement and answer any questions. A summary of that meeting is included in your packet.

The request for an extended abatement (5 years) requires an agreement approved by the Zone sponsors. This agreement sets the wage and compensation thresholds the company must meet in order to qualify for the 4th and 5th years of abatement. Specifically, the applicant’s average employee compensation throughout the 5 year abatement must be 130% or higher than the County’s average annual wage AND that the applicant’s average wage must be 100% or higher than the County’s average wage in the 4th and 5th year.

Following precedent, it also includes a provision where the company will pay the sponsors a community service fee computed as a percentage of their tax savings (50% in the 4th year and 75% in the 5th year) as well as a, “sweat equity” option the applicant could pursue with zone sponsor approval.

Staff has presented this item to the Wasco County Commission with unanimous approval and will present to the City of The Dalles Council next week.

Also included in the packet:

Enterprise Zone Pre-Authorization Consultation Summary

Worldwide Structures Property Company, LLC July 1, 2020

The pre-authorization checklist was reviewed and is attached to this consultation summary. In attendance were Matthew Klebes and Carrie Pipinich Enterprise Zone Managers, Jill Amery Tax Assessor, and Chuck Nuzum, Doug Kirchofer, Kyle House, and Rick Novak from Worldwide Structures. Worldwide Structures is a foreign limited liability company registered in the State of Delaware.

Worldwide Structures intends to build a facility located at 3855 River Road, The Dalles, OR 97058; tax lot: 2N 13E 28 900. The initial facility will be approximately 35,000 square feet with possible expansions. It will use equipment to modify some building materials, assemble all components of a completed home and some commercial structures, and ship the building to site. There will be examples of products on site along with a sales office.

On June 12, 2020, Worldwide Structures Property Company LLC submitted a completed Oregon Enterprise Zone Authorization Application for an extended abatement of 5 years. The developer anticipates an investment of 4 million dollars and the estimated total number of new employees to be hired for the development is at least 50. This development may also utilize the Opportunity Zone.

Applicant is aware that with the development set for completion in early 2020 the first year of the abatement will be claimed in 2021 and continuing for the next 5 years if requirements are met. Applicant is also aware of the 130% annual compensation requirement and has affirmed that they will be able to meet this requirement. Applicant is also aware of the 100% annual wage requirement and affirmed that they will be able to meet this requirement.

For the Extended abatement, in years 4 and 5, the applicant is agreeable to the, “Tax Savings and Cash Contribution” table detailed in Resolution No. 17-026 and will submit a cash contribution accordingly. Applicant expressed interest in possibly amending the cash contribution agreement if a community in-kind partnership of comparable value can be established and agreed to by the City of The Dalles and Wasco County.

Authorization Approval will be signed pending the approval of an extended abatement agreement from the City of The Dalles City Council, Port of The Dalles Commission, and Wasco County Board of Commissioners.

Matthew B. Klebes, Enterprise Zone Manager

This is the open property in the Port where Worldwide Structures Property Company LLC could build in the near future.