Lane County commissioners and Oregon Business Development Commission approve tax incentive for $253 million investment at Sierra Pacific Industries’ Eugene sawmill
Lane County proudly announces a significant step forward in regional economic development with the approval of Sierra Pacific Industries’ (SPI) $253 million Oregon Strategic Investment Program application.
The tax incentive, approved unanimously by the Lane County Board of Commissioners on June 10, is designed to encourage long-term business investment and signal to other companies that Lane County is a prime location for growth and innovation. The Board’s support underscores Lane County’s focus on fostering business growth, supporting jobs, and strengthening the local economy.
The Oregon Business Development Commission, part of Business Oregon, also voted unanimously on July 11 to provide the final necessary approval of the application.
Board of County Commissioners Chair David Loveall emphasized the broader significance of this investment, noting that it sets a precedent for future business development in the region.
“Lane County is open for business,” shared Chair Loveall. “At a time when Oregon communities are facing economic uncertainty, we want to send a strong message to those looking to invest in Oregon: Lane County welcomes you with open arms.”
Sierra Pacific Industries’ investment will create substantial economic benefit to Lane County. While the company is projected to save $6 million in property taxes over the 15-year SIP period, it will generate approximately $21.9 million in new property taxes and services revenue. This includes an estimated $19.9 million from new assessed property taxes and $2 million in Community Service Fee (CSF) payments. The company also plans to make a voluntary, one-time $525,000 contribution to Lane 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,” said SPI CEO Mark Emmerson. “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."
Beyond economic growth, this investment also strengthens local infrastructure and emergency response capabilities in the area surrounding the project. The CSF paid by SPI will provide new revenues for 75 percent of the surrounding area’s non-education taxing authority. The Lane Fire Authority is expected to receive just over $1 million in CSF payments.
"This investment marks an important milestone for our region,” shared Lane County Community and Economic Development Manager Jason Harris. “This capital commitment by SPI represents economic growth, innovation, and an invitation for partnership in our communities.”
With about 350 people currently employed at the Eugene mill and as a leader in sustainable forestry and manufacturing, SPI has expressed enthusiasm for the opportunity to invest in Lane County. Across Lane County, the company also has a sawmill in Noti, nearly 33,000 acres of sustainably managed forests, and a total employment of nearly 500 people. The company’s commitment to responsible business practices and economic development aligns with the County’s vision of a thriving business environment.
The Strategic Investment Program (SIP) was created by the Oregon Legislature in 1993 to support large capital investments by companies that create long-term economic value. The program provides temporary property tax abatement to encourage companies to invest in local operations, retain jobs and strengthen the local tax base over time. Increased tax revenues support critical public infrastructure and community services such as public safety. Urban SIP Projects, like SPI’s project, require a minimum investment of $150 million with companies continuing to pay property taxes on the first $100 million of that investment.