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     Wasco County and the City of The Dalles released documents Thursday describing the terms of the 15-year enterprise zone tax abatement agreement inked this week with Design, LLC, the corporation negotiating land purchases for Internet giant Google in The Dalles.
     The agreement provides for a 100 percent property tax exemption on real property improvements and personal property owned or leased by the business at the site during the calendar years of construction, and up to 15 consecutive years after the facility is placed in service.
     Property taxes on the land itself are not exempt.
     In return, Google must build a facility with value equal to or exceeding 1 percent of the real market value of all nonexempt taxable property in Wasco County, at least $16.945 million based on 2004-05 figures.
     By the end of the third calendar year after the facility is placed in service, it must employ the equivalent of at least 35 full-time, year-round employees.
And for at least one of the five calendar years following the service date, average annual compensation of all employees working at the facility must equal or exceed 150 percent of the most current average annual wage figures for Wasco County.
     For each calendar year after that fifth calendar year, average annual compensation must meet or exceed the same figure.
     Google (Design LLC) has also agreed to pay the enterprise zone sponsors, Wasco County and the City of The Dalles, an initial “project fee” of $280,000 and $250,000 for every year thereafter when the facility is in service as of the tax assessment date during the term of the agreement.
     The project fees will be deposited with the county and used for “projects and programs for local services or infrastructure benefiting the facility.”
     The agreement’s Exhibit B outlined the four anticipated programs and projects where the money may be spent:
     • $100,000 to Columbia Gorge Community College’s information technology program
     • $50,000 to Q-Life
     • $75,000 to county economic development
     • $25,000 to project-related costs.
     Google may be eligible for an additional state tax abatement under the rural long-term enterprise zone program, which targets areas with chronically low income or chronic unemployment.
     With the governor’s approval, the company could receive excise tax credits equal to up to 62.5 percent of the firm’s annual gross payroll costs at the facility.
     The state exemption is currently in progress, noted Holly Armstrong of the governor’s office, but a couple of issues still remain to be resolved.
     Under terms of that exemption outlined on the Oregon Economic and Community Development Department website, if that exemption is granted, 30 percent of the corporate taxes collected by the state with respect to the firm will be rebated to local taxing districts.
     Google will also receive other local benefits, including priority service at the local planning offices.
     Terms of the agreement, which was not released until two days after approval by the city and county, required the parties “to the maximum extent permitted by law” consider that the agreement contains confidential commercial and financial information of “Design,” thus making it exempt from Freedom of Information Action requests.
     However, all parties agreed this week that the agreement should be made available to the public, a joint city-county press release said.
On the Web:
Rural long-term enterprise zone:
www.econ.state.or.us/ enterthezones/factsheet.htm

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