Sierra Pacific Industries will begin a multi-million dollar upgrade to the company’s Eugene sawmill this summer, partially paid for with a tax exemption being used for the first time in Lane County.
Sierra Pacific plans to spend $253 million on upgrades to its Eugene sawmill site on Highway 99. Company representatives told county commissioners the current sawmill houses three production lines in three separate buildings and it plans to reconstruct the lines to be under one roof. Representatives said this would make the sawmill more efficient, allowing Sierra Pacific to stay competitive and, as a result, retain its employees.
The Oregon Strategic Investment Program (SIP) allows businesses to forego paying property taxes for 15 years on capital investments such as new equipment. Businesses intending to invest more than $154.2 million in an urban area or $41.1 million in a rural area can negotiate fees with local governments in exchange for the property tax savings. Oregon established the program in 1993 and it has been used mostly for energy and technology projects…