Greater Hermiston Enterprise Zone

The Greater Hermiston Enterprise Zone (GHEZ) was the primary enterprise zone for the City of Hermiston from 2005-2025. During its lifetime, it attracted more than $3 billion in new and planned capital investment, stimulated nearly 600 direct full-time jobs, and generated an annual direct payroll of more than $19 million circulating in the local economy which supports hundreds of additional ancillary local jobs.

As a function of state law, the 10-year authorization for the GHEZ terminated on June 30, 2026. The existing exemptions will continue according to their original terms. 

The Hermiston City Council chose not to renew the GHEZ in its current form. A similar, but fully distinct enterprise zone, the Hermiston Enterprise Zone (HEZ), began operations July 1, 2026. 

Which Amazon data centers are operating in the Greater Hermiston Enterprise Zone?

Amazon’s first data center campus (PDX138) in the Greater Hermiston Enterprise Zone is one of the largest private investments in the city’s history. It received a Certificate of Occupancy in July 2024 and is operational. A second campus (PDX245) broke ground in 2024 but had not yet received its Certificate of Occupancy by the end of 2025, which is a key date for inclusion on the tax rolls and beginning of exemption period.

In our terminology, a campus consists of several large individual data center buildings on the same site.

How do data centers operating in the GHEZ contribute to the community?

For each data center campus approved after 2020, Amazon makes a one-time Community Development Contribution (CDC) payment of $5 million. Once a Certificate of Occupancy is approved, a 15-year payment plan begins in lieu of regular property taxes.

• Annual Improvement Payments (AIP) start at no less than $2 million, increase to $3 million when a third building on the campus is completed, and increase to $4 million when the fourth building is completed.
• Additional Annual Fee (AAF) is equal to the regular taxes on $25 million of assessed value, which increases by 3% each year. Those fees are distributed to taxing districts that cover the property.
• Public Safety Impact Fee (PSIF) & Student Success Fee (SSF) of $50,000 each, increasing by 3% annually, are paid to Umatilla County Fire District #1 and the Hermiston School District.

Once the 15-year agreement expires, the property become subject to regular property taxes. For PDX138, this will happen in 2040.

How much money is Amazon paying to Hermiston and other local taxing districts?

The CDC and AIP funds are split evenly between the City of Hermiston and Umatilla County. The remaining funds are allocated as shown above.  In 2024, Amazon made its first CDC payment.  In November 2025, Amazon made its first annual enterprise zone payment of $2.65 million. Additionally, in November 2025 Amazon paid $542,386 in regular property taxes to local taxing districts related to value not included in the Enterprise Zone agreements, making it the second largest taxpayer in the city.

These payments increase each year and will grow as new data centers come online.

How has the City of Hermiston used revenue from data centers?

The City of Hermiston has used enterprise zone funds, including those from Amazon, to pay for capital projects including City Hall, the Hermiston Public Library renovation, and the Hermiston Public Safety Center renovation. Other annual payments only began in 2025 and have not yet been dedicated to a particular project or program.

Revenue distributed to other taxing districts is spent at their discretion.

What other ways is Hermiston benefiting from data centers?

• Amazon will pay an estimated $1.7 million in Electricity Franchise Fees in 2026-27, allowing the city to reduce electric bills for all Hermiston customers by 3%
• The Aquifer Storage and Recovery (ASR) project, which was funded by Amazon, is pumping and storing Columbia River water in an underground aquifer for use community-wide during high demand summer months.
• Amazon is funding the construction of more than 100 RV camping spots at the Eastern Oregon Trade & Event Center.
• Moving the Hermiston Municipal Court out of the Public Safety Center allowed for the renovation of that building that serves both the Hermiston Police and Umatilla County Fire District #1.