Forest Grove City Council Work Session on Enterprise Zone and Federal Activities - May 26, 2026
Forest Grove City Council Work Session on Enterprise Zone and Federal Activities - May 26, 2026
The Forest Grove City Council convened a work session on May 26, 2026, to discuss the city's enterprise zone program, which expires June 30, 2026, and to review federal activities including a FOIA request to ICE and updates on police mask-wearing policy. No public comment was taken and no formal action was taken, as this was a work session.
Discussion Items
- Enterprise Zone Overview and Policy Questions: Staff presented a comprehensive overview of the state enterprise zone program, its history in Forest Grove (since 2006, amended to include Cornelius in 2008, extended to 2026), and the state and local requirements for three-year and five-year tax abatements. The program has resulted in 14 applications, 421 jobs, and $129 million in investment since inception, with two active applications for 36 jobs and $321 million investment. Staff outlined 12 policy questions for council consideration, including: the geographic area, duration (three vs. five years), application fee cap, minimum investment, number of jobs required, wage requirements, community support fee, school support fee, limitations on extensions, pre-application requirements, and potential moratoriums on specific industrial uses.
- Council Discussion on Enterprise Zone: Councilor Valenzuela expressed support for continuing the program but with modifications to align with the city's 2040 plan and community goals. Councilor Schimmel emphasized the need for strategic alignment with long-term plans, employment objectives, infrastructure capacity, and neighborhood compatibility. Councilor Martinez questioned the school support fee (currently 15% going to state) and whether the city could direct funds locally. The mayor noted that the state moratorium on data centers is for one year and the city may have tools to address specific industries through job requirements. Staff clarified that if the council wishes to make changes, the current program would need to be allowed to expire and a new application submitted, or the program could be extended without changes. The council will have another work session at the first June meeting to discuss specific policy decisions.
- Federal Activities Update: City Recorder Mariah reported on a FOIA request submitted to ICE on January 27, 2026, for records of ICE activities in Forest Grove. The request has not been processed beyond the 20-day window; a follow-up received a response on May 12 stating it is in queue. Options include mediation or an administrative appeal. Police Chief reported no local incidents of individuals impersonating ICE agents. The city is awaiting a vendor update on a mask-wearing policy to align with state law, but currently compliant with name tag requirements.
- Council Discussion on Federal Work Sessions: The mayor proposed that future federal activity work sessions be scheduled only upon council request during council communications or if an incident warrants, rather than on a regular schedule. Council concurred with this approach.
Key Outcomes
- The council will hold a work session at the first June 2026 meeting to decide whether to renew, modify, or let the enterprise zone program expire. Staff will provide additional information as needed.
- The council agreed not to schedule regular work sessions on federal activities; instead, sessions will be added per council request or emergent need.
- The city will continue to pursue the ICE FOIA request and may seek mediation or file an administrative appeal.
- No formal actions were taken at this work session.
Meeting Transcript
That's work session on the form. No public comment will be taken and the council will take no formal action. Tonight's topic is on our enterprise zone. And before I turn it over to Jesse and Kim, I just want to state. This is a complex, there's a lot to unpack. And the goal, my goal is to, you know, just bring us all up to the same level because we need to make a decision. That's gonna, you know, that has a lot of implications. And so as we go through this, just listen. If you have a clarifying question, there's gonna be um spaces in between where I'll ask if you have questions of staff. Later on in the presentation, there's lots of policy questions. Those questions are there to get you to start thinking. We are not answering any policy questions tonight. But if you have additional information you need to help you come to an answer later, that will be the opportunity. You know, and then I also like to say to staff, don't rush through it. Don't feel like you have to get all through this. We all read through the packet, and there's a lot of policy questions, there's a lot of things. And so really I just want all of us on the same page. Okay, cool. So with that, I'm gonna turn it over to Jesse. All right, thank you, Mayor. Um, Mariah is bringing up the uh the presentation. As the mayor mentioned, this is it's multi-layered. You'll probably notice in the back that there were 12 different policy questions. Uh it seems if you kind of pull something over here, something pushes over here. And so we'll step through this. Um, as the mayor mentioned, uh, very just kind of methodically. Um, Kim and I are gonna um combine on this presentation. I'm gonna take it up into to the point I'll do some of the history and the purpose. Uh Kim will pick it up. Uh, what is an enterprise zone, and then I'll kind of pick it back up at the opportunity zone uh and take us through the uh through the end of the presentation. I think we have all the way until seven o'clock. So um if you would, Mariah, next slide. So as the mayor mentioned, the purpose tonight is talk about the economic development uh enterprise zone. I would note the program expires June 30th of this year. Um, one of the conversations that we had with Business Oregon is what happens if it does expire, the city can reapply if they would like to. Uh, for context, we're also going to talk a little bit about the opportunity zone. That program doesn't expire until December 31st of 2028. And so I don't want to spend a lot of time on it, but I did want to offer that just to provide that additional context about economic development incentives. So with that, next slide. So really I think probably of of import here uh is 2040 does recognize the economy as a principal goal area. The one part that probably stands out and is most connected to the enterprise zone is the outcome, which is create a balanced and diversified economy comprised of a variety of commercial and industrial businesses offering high-paying job opportunities. The enterprise zone will kind of touch on all of those in some way, and we'll get into that as it does. So next slide, please. A little bit about how the goal actions connect to the enterprise zone in some way. If you look at 1.2, the volume and diversity of commercial business development, it connects to that a little bit. An enterprise zone is very limited in the commercial application. It's mostly for the industrial application. We'll talk a little bit more about that later. Update the city's economic development strategic plan. This could be a part of that economic development strategic plan.
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