QuickTake:

The sawmill is planning a modernization project and will save nearly $6 million in property taxes over the next 15 years. County commissioners had previously approved the tax incentive in June.

Lane County officials have received the state’s blessing for property tax incentives the county approved for Sierra Pacific Industries, a Eugene sawmill planning a $253 million modernization project.

The Oregon Business Development Commission unanimously approved the company’s application, which will save Sierra Pacific nearly $6 million in property taxes over the next 15 years. Lane County officials announced the state board’s approval Tuesday, July 15. The board has issued its ruling on Friday.

Lane County commissioners had unanimously approved the tax incentive June 10. Subsequent approval but the state was required to make the incentives official. The state’s Strategic Investment Program, which the Legislature created in 1993, makes the incentives possible.

“This investment marks an important milestone for our region,” said Jason Harris, Lane County’s community and economic development manager. “This capital commitment by SPI (Sierra Pacific Industries) represents economic growth, innovation and an invitation for partnership in our communities.”

The company still will pay taxes and other fees, even though it’s getting the $6 million tax break over 15 years. Overall, Sierra Pacific is expected still to generate nearly $22 million in new property taxes and services revenue over that same time period.

That includes $19.9 million in new assessed property taxes and $2 million in community service fee payments that will aid other taxing jurisdictions, including the Lane Fire Authority. The fire authority will receive slightly more than $1 million in payments, the county said in a release. 

The company also agreed to make a voluntary, one-time contribution of $525,000 for the county’s rural patrol program.

“This support from Lane County is more than an economic boost — it’s a vote of confidence in Sierra Pacific’s presence in the region and our shared vision for long-term, sustainable growth,” Sierra Pacific CEO Mark Emmerson said in a statement. “The investment we’re making in Eugene will ensure our ability to support family-wage jobs and grow the county economy for years to come.”

Sierra Pacific has about 350 employees at its Eugene mill, on Highway 99 near the Eugene Airport. The mill, formerly Seneca Sawmill, was acquired by Sierra Pacific in 2021. Sierra Pacific also owns a sawmill in unincorporated Noti and nearly 33,000 acres of managed forests. In all, Sierra Pacific employs nearly 500 people in the region.

Ben Botkin covers politics and policy in Lane County. He has worked as a journalist since 2003, most recently at the Oregon Capital Chronicle, where he covered justice, health and human services and documented regional efforts to combat fentanyl addiction. Botkin has worked in statehouses in Idaho, Nevada, Oklahoma and, of course, Oregon. When he's not working, you'll find him road tripping across the West, hiking or surfing along the Oregon Coast.