Troutdale city in favor of FedEx tax break
A majority of the City Council is in favor of giving Federal Express an estimated USD 4 million break on property taxes as part of a new enterprise zone to attract industrial businesses.
The shipping conglomerate is debating relocating from Swan Island and building a larger distribution center on the Reynolds Metal site as part of a USD 1.8 billion expansion of its North American network.
FedEx has told city officials it’s prepared to invest USD 100 million in the local relocation, which could bring hundreds of jobs to East County. Troutdale could eventually expect about USD 1.6 million annually in property taxes after the tax-abatement period runs out, City Administrator John Anderson told the council.
A two-hour work session Tuesday, June 26, grew testy at times as councilors debated what one called a monumental decision. At issue is whether FedEx will build a 500,000-square-foot ground distribution facility in Troutdale or in Washington State. Troutdale appears to be at the top of the company’s list, Anderson said.
Councilor David Ripma wondered why the city would establish an enterprise zone if the company already seems committed to the Reynolds site. He and Councilor Jim Kight were against giving FedEx the tax break, which would last three years and possibly five if the zone is renewed.
The rest of the council, however, said the enterprise zone wasn’t necessarily about just FedEx, but about attracting top-flight industry in general. And there is the risk that FedEx could either go to Vancouver or Ridgefield.
Councilors Barbara Kyle, Norm Thomas, Doug Daoust and Robert Canfield sided with Thalhofer in an informal vote. Canfield, however, said he shared Ripma’s concern about the timing of FedEx’s request and wondered if the company is pressuring the council.
FedEx officials would like to know the city’s position on the incentives by the end of June. Councilors instead scheduled a public hearing on the matter for July 10.
