A metal parts manufacturer relocating to Lewiston from the Portland, Ore., area is set to receive a partial five-year property tax exemption.
The Nez Perce County Commission approved the incentive for Northwest Fourslide at a Wednesday meeting.
Northwest Fourslide will receive a 50% property tax exemption for its land, building, equipment and business for one year and a 75% tax property exemption on those assets for an additional four years ending Dec. 31, 2028, according to the deal.
After that, the company will pay the full amount of its property taxes.
The exemption is allowed under an Idaho code and a county ordinance. To be eligible, companies have to bring “significant economic benefits to the county” and “be for non retail purposes that are either commercial or industrial,” under the Idaho code.
Northwest Fourslide is investing $10.8 million in its new plant under construction in North Lewiston where it will employ about 40 people, according to the agreement.
Production is expected to shift to the Lewiston plant in June, said Jan Mellinger, president and an owner of the company.
“The reason we’re asking for the tax abatement is it’s a big risk for us to move here,” Mellinger said. “It is a huge financial burden we’re putting on ourselves because we’re moving about 20 people here.”
The remainder of the employees will be hired from the Lewiston-Clarkston Valley where the number of staff members has the potential to grow, she said.
The relocation is giving Northwest Fourslide an opportunity to help its employees have a better quality of life.
“In our metro area in Portland, it’s astronomical for people just starting out to buy houses,” Mellinger said. “So that was one of the determining factors.”
It also has advantages for the operation of Northwest Fourslide, she said.
In Oregon, where the company leases a facility, the taxes, building expenses and labor costs are high, Mellinger said.
“We wanted to be able to own a building and have a secure and long-term location to build the business,” she said.
The exemption was previously used to support upgrades at Clearwater Paper and Vista Outdoor, Lewiston’s two largest employers.
But this is the first time a business that is new to Nez Perce County is benefiting from it.
In this instance, the incentive is “just to help the business get on the ground, get going, get settled,” said Commissioner Doug Havens.
“It’s hard to really say that’s not a good deal,” he said
William McCann Jr., an attorney and board member of Valley Vision, had a similar take. Valley Vision, a not-for-profit economic development group, orchestrated the effort to recruit Northwest Fourslide.
The addition of Northwest Fourslide will grow the employer base, McCann said, noting that even during the years of the exemption the business will be paying some of its property taxes.
At the same time, McCann said, its staff will be making significant contributions to the economic health of the area.
“We’ll have employees buying houses and paying real property tax, buying groceries, getting their cars fixed (and) buying new cars,” he said.
Williams may be contacted at ewilliam@lmtribune.com or (208) 848-2261.