The owners of a Eugene sawmill will receive an estimated $6 million in new state tax exemptions.
Sierra Pacific Industries is currently planning a $253 million capital investment at its mill. It's said it hopes to break ground on the modernization project this summer.
The company has now been accepted into the state’s Strategic Investment Program, which will exempt it from some property taxes for the next 15 years.
The Oregon Business Development Commission signed off on the company's application on July 11. Lane County Commissioners had already voted unanimously last month to give their approval.
As part of this new agreement, Sierra Pacific has committed to maintaining operations at the mill during its years in the program. It also plans to give Lane County a one-time contribution of $525,000 for rural fire patrol, and $10,000 to cover county administrative costs.
Meanwhile, the county projects that the company's investment will generate $22 million in new taxes and program fees during this 15-year period.
“I think Lane County and the jurisdictions are getting a good return,” said Commissioner Pat Farr at a meeting last month. “And the return doesn't stop giving into perpetuity.”
However, Commissioner Heather Buch shared some concerns about the agreement at that meeting. She said the county should have fought for more funding for its rural fire patrol.
Buch said Lane County only gets 11 cents on every dollar from property taxes, so its actual reward from this investment will be diluted.
“It's nominal for the county,” said Buch. “On the other hand, I'm not going to deny the other special tax districts the remainder of the money, because I feel like we, the county, could have negotiated better.”
Sierra Pacific's Eugene sawmill employs about 350 people. The company purchased the site, which was formerly the Seneca Mill, in 2021.
However, the mill has sometimes drawn criticism from conservationists. In 2023, activists blocked the entrance to the facility, in protest of the company's contract with Bureau of Land Management to log timber lands that contained old growth trees.
