Hermiston City Council approves smaller enterprise zone

By Terry Murry on Tuesday, March 10th, 2026 in Columbia Basin News Columbia Basin Top Stories

HERMISTON – The Hermiston City Council voted unanimously last night to shrink the city’s enterprise zone to only include land that’s within the city limits. Most of that land is zoned industrial, with the exception of the downtown, which will offer enterprise zone status to hotels.

The current zone sunsets on June 30. The new zone will go into effect on July 1. The only members of the public speaking at the meeting did not oppose the zone. Representing Umatilla County Fire District No. 1, they expressed the desire for those who negotiate with businesses for zones consider funds to help the fire district, since enterprise zones have a set period during which they don’t have to pay taxes. Umatilla County was a partner in the existing zone and will not be in the new zone.

The new zone will be effective for 10 years. Assistant City Manager Mark Morgan says that while it is impossible to shrink a zone while the contract is still effective, it is possible to enlarge it if needed.

Enterprise zones are authorized by the state of Oregon for zone sponsors to offer property tax reductions to certain types of businesses. The city of Hermiston has sponsored an enterprise zone for 20 years.

A detailed presentation on the city’s enterprise zone is at Meetings | Hermiston, OR on the agenda for the March 9 city council meeting.

Map of the new enterprise zone shows the hashmarked blue area as the new enterprise zone. The blue areas are simply part of the city limits that are not in the zone. Provided by the city of Hermiston.