Oregon businesses propose $250 million fund to unlock industrial land
A new report argues that the state's land use system is outdated and proposes expanding infrastructure spending to support semiconductor and manufacturing growth.
By Bianca Shevchenko ·
The Oregon Business Council has proposed a new state fund worth $250 million to prepare underdeveloped land for industrial use. The group released a 29-page report on Monday that outlines specific changes to the state's land use regulations.
The report identifies a phantom supply of land in Oregon that is currently not available for economic development. It suggests creating a dedicated industrial site readiness fund to cover the costs of roads, utilities, and electricity. The group also recommends expanding local programs that allow industries to operate across multiple jurisdictions.
The council argues that the state's land use system, established about 50 years ago, no longer fits the current economy. The report notes that Oregon has shifted from an agriculture and timber focus to manufacturing and semiconductors. A forthcoming survey cited in the document found that 80 percent of respondents missed out on development projects due to a lack of developable land.
The report references a 2026 study by the University of Oregon which states that limited industrial land availability is slowing new semiconductor investment. It states that the state has spent decades building competitive advantages in these industries through private capital and specialized workers. The document warns that these advantages are no more permanent than productive farmland.
John Tapogna, president of the Oregon Business Council, spoke at a webinar on Tuesday. He stated that land without infrastructure is not ready for use. He noted that the prosperity council recommended this larger investment earlier this summer to address gaps in both industrial and housing land.
The report also highlights the need to expand industrial land banks and regional voluntary programs. It points to a Central Oregon arrangement where cities and counties collaborate to designate land for employment and industrial opportunities. This approach aims to create more regional programs across the state.
Corie Harlan, program director for cities and towns at Bend-based Central Oregon LandWatch, said the organization expressed hesitant support for the report. She noted in a statement that some ideas have merit, particularly regarding land inventories and infrastructure. The group said it is ready to engage in this work to ensure the land use program delivers opportunities and livability for Oregonians.
Source: Beaverton Valley Times
