Greater Hermiston Enterprise Zone

An Enterprise Zone is a large designated geographic area where businesses can receive temporary property tax exemptions on capital investments. This program is administered at the local level but enabled by the State of Oregon to encourage economic development and job creation.

In Hermiston, the Greater Hermiston Enterprise Zone (GHEZ) has been the city’s most significant economic development tool since 2009. In its first 15 years it has attracted more than $977 million in new and planned capital investment, stimulated over 500 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.

Is my business located in the Hermiston Enterprise Zone?

A map of areas within the GHEZ can be found HERE.

Does my business qualify for Enterprise Zone Benefits?

Generally speaking, EZone qualification requires that a business is industrial in nature, and is producing a product or service predominantly for export out of the area.  This excludes businesses like restaurants, tax preparers, retailers, etc.

Which businesses have received benefits through Hermiston’s Enterprise Zone?

As of 2024, the following companies are active participants or recently completed participants in the GHEZ program:

Active Projects

  • Lamb Weston
    • Investment: $295 million
    • Jobs Created: 149
    • Employee Compensation: Avg. $77,940 per year
  • Amazon Data Services (PDX138)
    • Investment: $200 million+
    • Exemption starts in 2025
  • Amazon Data Services (PDX245)
    • Investment: $200 million+
    • Construction began in 2024; exemption pending
  • Amazon Data Services (PDX146)
    • Investment: $200 million+
    • Not yet under construction

Completed Projects

  • Shearer’s Foods
  • Pioneer Hi-Bred (Production & Research)
  • Eastern Oregon Telecom

(These businesses have transitioned out of the exemption period and are now contributing fully to the local property tax base.)

What kind of tax exemptions do these businesses receive?

Eligible businesses can receive property tax exemptions on new investments such as buildings, machinery, and equipment. These exemptions do not apply to existing property, land,  or previously taxed investments.

How long do these tax exemptions last?

The duration depends on the type of Enterprise Zone agreement, as guided by the size of the capital investment, number of new local jobs created, and compensation for those new local jobs. The primary types of exemptions include:

  • 3 to 5 years for standard Enterprise Zone participants
  • Up to 15 years for Long-Term Rural Enterprise Zone (LTREZ) agreements, which require more substantial investment and wage/benefit thresholds

How much do these businesses contribute to the Hermiston community?

While receiving property tax exemptions, GHEZ businesses make payments in lieu of taxes, ensuring ongoing financial support to local public safety, education and health districts. These contributions are individually negotiated and include:

  • Lamb Weston
    • $1 million per year:
      • $500,000 – Umatilla County
      • $450,000 – City of Hermiston
      • $50,000 – Hermiston Parks & Recreation
      • Total over life of exemption: $15 million
  • Amazon Data Services
    • Annual Improvement Payments: Starting at $2 million per year and increasing to $4 million per year, split equally between City & County
    • Additional Annual Fee: Starting around $550,000 per year in 2025, distributed to all underlying taxing districts proportional to their tax rate
    • Public Safety Impact Fee and Student Success Fee: Starting at ~$60,000 per year per campus paid to local school and fire districts
    • Community Development Contributions: One-time payments of $5 million per campus, split equally between City & County

What happens when the tax exemptions expire?

After an exemption period ends, the full taxable value of the previously exempt property is added to the tax rolls. For instance:

  • $85 million in previously exempt value was added to the rolls as of 2024
  • Lamb Weston will come on to the tax rolls in 2034
  • Amazon campuses are expected to phase in from 2039 onward

Who oversees the GHEZ?

The City of Hermiston and Umatilla County are co-sponsors of the GHEZ. Management and coordination are led by a designated GHEZ Manager, who works with stakeholders, businesses, and taxing districts to ensure compliance and community benefit.

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