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Electronic commerce zone goes to Medford The designation promotes business growth through income-tax breaks By GREG STILES MotorcycleUSA.com moved from Grants Pass to Medford in 2000 looking for better marketing opportunities for its motorcycle apparel business. Now the firm and others doing electronic commerce may get an even bigger boost. Medford has been awarded one of four "Electronic Commerce" zone designations from the Oregon Economic and Community Development Department. The e-commerce zones are part of an enterprise zone program established in 1985 that encourages business development and expansion through property tax breaks. The e-commerce zones will foster business growth through state income tax credits. "It could definitely be beneficial to us," says Don Becklin, MotorcycleUSA.com's president. Becklin's 25-employee firm launched into e-commerce in 1998. "They're looking for companies that do more than 50 percent of their business online and it sounds like we'd fall into that category. We've been in an expansion mode for a while and one of the things you have to do is increase employment." Medford joins districts in northeast Portland, Burns and Roberts Creek (between Roseburg and Winston) in gaining the designation. A fifth zone, in North Plains 19 miles southwest of Portland, was designated by the Legislature. About 30 areas inquired into the application process, and a dozen pursued the designation. The state developed the program to encourage e-commerce in specific parts of the state. "Two of those applications jumped out, and Medford was absolutely strong," says Bruce Laird, a regional development officer for the state. "I don't think a lot of the other communities saw this and figured it out. I really think this could be a pivotal tool kicking us to the next level of the technology and cyber business." Benefits for qualifying businesses include an income tax credit equal to 25 percent of new investments - up to $2 million per project related to electronic commerce sales, customer service, order fulfillment or broadband infrastructure. The credits will last during a three- or five-year period for firms that operate in existing enterprise zones and make a profit, meet or exceed area wage levels and show at least a 10 percent increase in employment. Medford now has 14 designated enterprise zones that have the e-commerce designation as well. The city could expand the zones into new areas. Business owners desiring to be included in e-commerce zones must fill out a two-page pre-certification form and deliver it to Gordon Safley at Southern Oregon Regional Economic Development Inc., 332 W. Sixth St., Medford. Forms will be passed on to Bill Hoke, Medford's economic developer, who will prepare a report for City Council approval. Hoke says he's already receiving inquiries about the e-zones. He hopes to have a plan of new zones by midsummer. "The city is now having real civic debate about what should be in and out and how aggressive the policy should be," Laird says. "My guess is that the council will go for it because they want to see better-paying jobs." Reach reporter Greg Stiles at 776-4463 or [email protected]. Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.