I’m pleased to share exciting news for our community: Washington County and the City of Tualatin have approved a Strategic Investment Program (SIP) agreement with Lam Research Corporation, clearing the way for up to $1.7 billion in new investment in semiconductor equipment manufacturing and a state-of-the-art research and development facility right here in Tualatin.
This is a big deal for our city, and I want to explain why.
The SIP is a tool created by the State of Oregon that allows counties to enter into 15-year property tax abatement agreements with businesses making large capital investments and creating high-wage jobs. In exchange, companies commit to substantial local investment, additional negotiated fees, and long-term job creation. Since 1993, Washington County’s SIP agreements have attracted more than $50 billion in investment and helped create or retain over 19,000 local jobs. If finalized, the Lam agreement would be the seventh such partnership in our county’s history.
What does this mean for Tualatin residents? Nearly 450 new, high-wage jobs at Lam, plus roughly 1,400 construction-related jobs and 670 more supporting equipment installation and technical support. Over the life of the agreement, the project is expected to generate millions in new property tax revenue, and our community is guaranteed $27 million in payments in lieu of taxes, shared between the city and county. Beyond the 15-year term, the previously abated taxes return fully to the tax rolls, providing lasting revenue for city and county services and schools.
I know some residents may wonder why we’d abate taxes at all. The honest answer is that without agreements like this, large capital-intensive projects often go elsewhere, taking the jobs and investment with them. Under the SIP, Lam still pays full property taxes on an initial portion of new improvement value, plus an annual Community Service Fee, ensuring our schools, county services, and city budget benefit right away, not just after 15 years.
This agreement reflects the kind of steady, high-wage economic growth that keeps Tualatin strong and competitive. I’m proud of the collaborative work between Washington County, our city staff, and Lam Research to make it happen, and I look forward to seeing this investment take shape in our community.
As always, I welcome your questions and feedback.
