By SCOTT JORGENSEN
IVN Staff Writer

Josephine County commissioners voted 3-0 to apply for redesignation of a Grants Pass area enterprise zone during their Wednesday, March 28 meeting in Grants Pass.

Enterprise zones provide incentives for businesses to relocate or expand in areas with struggling economies, and are used for the sake of economic development.

Charlie Mitchell, the business development manager for Southern Oregon Regional Economic Development Inc. (SOREDI), told commissioners that the existing enterprise zone established in 1997 has resulted in more than 700 jobs; saved 1,300 jobs; and brought $44 million in private investment to the area.

‘Significant Success Story’

During a recent interview, Mitchell said that one of the biggest beneficiaries of the enterprise zone has been Masterbrand Cabinets. The company had 130 employees in 1997, and is now up to nearly 700.

“That’s a pretty significant success story,” he said.

Prior to the enterprise zone designation, Mitchell said, Masterbrand was considering closing its doors. But that designation enabled it and other businesses to expand their operations and create more jobs.

Enterprise zones last for 10 years. They work by suspending property taxes for qualified businesses for up to three years.

“Whatever value is assessed at the time you apply, it sits on the books,” Mitchell said. “If you’re occupying an existing building and doing some substantial remodel, improvement or capital investment, that added value wouldn’t be on the tax rolls.”

Josephine County isn’t alone in seeking enterprise zone designation. The cities of Rogue River and Butte Falls, in neighboring Jackson County, are making similar attempts to draw business investment.

City Administrator Mark Reagles, of Rogue River, said that city has been receiving inquiries from industrial manufacturers looking to relocate on 28 acres of industrial land within city limits.

Smaller Communities Can Benefit

Reagles said that having an enterprise zone would allow Rogue River to compete economically with larger local cities.

“The real benefit to the community is to bring in jobs and maybe bring in new citizens to shop and live,” Reagles said. “It puts us on a level playing field with Grants Pass, Josephine County, Medford and all of those that already have enterprise zones.”

Currently, a federal “champion zone” covers most of Josephine County, including Illinois Valley, Sunny Valley and Wolf Creek. That designation was granted in the 1990s, Mitchell said, and will sunset in the next few years.

However, there will be no redesignation, because the federal program that created the zone has been discontinued.

Last year, the city of Grants Pass qualified for an e-commerce enterprise zone overlay, one of just 10 in the entire state.

“That opens the programs up to more types of businesses and eligible investments,” Mitchell said.

Fire Mountain Gems, formerly located in Illinois Valley, and now in Grants Pass, was able to benefit from the e-commerce overlay, Mitchell said. It was able to add a new warehouse to its operations and hire more employees.

Mitchell said that there are enterprise zones in all 36 Oregon counties.

“It’s widely used and widely successful,” Mitchell said. “It’s pretty standard now across the state.”

Mitchell said that Josephine County’s odds of achieving redesignation “depends on how many applications the state gets,” as a limited number of zones are currently up for grabs.

Approval Anticipated

“They give precedence to enterprise zones with a record of success,” Mitchell said. “In that regard, I’m fairly confident this one will be redesignated. I would be very surprised if it did not.”

The Rogue River area also “seems like a good candidate” for such a designation, Mitchell said, based on the fact that businesses are already considering it for a location.

Reagles said that having an enterprise zone likely will help Rogue River in its quest to lure more jobs and enhance its overall economic activity.

“We do have people who are interested and have been looking,” Reagles said.

“We’ll see if this is a deal sealer or not. Hopefully, it is.”