Oregon will benefit from major company tax break - News, Weather, Sports, Toledo, OH

Oregon will benefit from major company tax break

OREGON, OH (Toledo News Now) -

Oregon City Council debated a huge tax break being offered to a plant getting ready to build in the city. They say it will be worth the lost tax revenue for a number of reasons.

Testing is being done in a field on North Lallendorf and York in Oregon as they wait for final permits to be granted for the $860 million natural gas-to-electric power plant. To help lure the company to the area, the city is offering a 100 percent break on taxes for 15 years.

"Even though they are not paying the total rate for that 15 years that a power plant would pay, we're still way ahead of the game," said Mayor Mike Seferian.

The city is currently receiving next-to-nothing in tax revenue from the farm land. When the plant is being built there starting next year, the city will get income tax from construction workers, then income taxes from the eventual plant employees, as well as $1 million a year in water and sewer payments.

Oregon City Schools will benefit, as well. As part of the tax abatement agreement, Oregon Clean Energy will pay the district an average of $1 million a year for those 15 years. That money will help offset funding cuts from the state.

"Costs continue to go up and revenues keep decreasing," said Dr. Lonny Rivera, superintendent of Oregon City Schools. "It's going to help us to be able to do what we do on a daily basis."

Rivera also says the Oregon Clean Energy CEO wants to set up a classroom at the plant so students can learn about the new technology.

City council is expected to approve the tax break next week.

Mobile users, click on the "Video" button in the app to watch this story. Download our app here.

Copyright 2013 Toledo News Now. All rights reserved.



Powered by Frankly