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AGC Heat Transfer to build manufacturing facility in Townsend Business Park

Industrial sanitation equipment manufacturer AGC Heat Transfer is moving one of its plants from Milwaukie to Fairview. The move will allow the company to take advantage of Fairview's Columbia Cascade Enterprise Zone.

An enterprise zone is an area in which tax exemptions are temporarily offered to attract private developments, said Fairview Senior Planner Sarah Selden at Fairview's City Council meeting on Wednesday, May 15. The municipality-designated zones must follow Oregon regulations.

"The (statewide) enterprise-zone program has a standard three-year tax exemption," Selden said, "and Fairview offers an additional two-year exemption for a total of five years subject to a higher minimum investment and to a community service fee."

To qualify for Fairview's five-year program, a company must invest $2 million in capital improvements — or $500,000 in equipment. AGC Heat Transfer plans to invest $9 million construction on the new facility, and spend $2.8 million on equipment.

"They are investing a significantly higher amount of money than established for the five-year exemption," Selden said.

About the project

AGC Heat Transfer plans to build a 65,000-square-foot light manufacturing facility in the Townsend Business Park, 23303 N.E. Sandy Blvd.

When the five-year exemption expires, the full value of the property will be taxed.

"That will provide the city with over $33,000, which (will be) used to support economic development activities in Fairview," Selden said.

Since Fairview adopted its enterprise program in 2007, the municipality has only approved one firm: General Pacific, an electric utility sales company. General Pacific received the five-year tax exemption from 2010-2015 for construction of a new headquarters and distribution facility also in the Townsend Business Park.

"That was a number of years ago so it's great to see another business taking advantage of the program, and being attracted to invest in Fairview, in part, because of incentives like this," Selden said. "Once the tax abatement has expired, it will be a benefit for the city of Fairview and our tax roll."

The Fairview City Council must approve businesses for the program, and councilors voted unanimously to approve the businesses' request Wednesday evening.

While there was little discussion from the dais, Councilor Keith Kudrna welcomed adding the plant to the community.

"A $9 million investment, that's good," Kudrna said.

About AGC Heat Transfer

AGC Heat Transfer is a manufacturer of sanitary plate heat exchangers used for food pasteurization.

AGC Heat Transfer's Fairview site will house a west coast manufacturing facility, which will consist primarily of welding operations. The new Fairview building will provide the company with a larger and more modern facility.

For more information about the company, visit AGC Heat Transfer


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