Hillsboro economic development agency buys 94 acres to support industrial development

Hillsboroeconomicdevelopmentagencybuys94acrestosupport industrialdevelopment

By Jonathan Bach – Staff Reporter, Portland Business Journal Jun 17, 2024

Aerial photo of glowing city lights of Hillsboro, Oregon at dusk. Urban renewal agency officials are buying up land on the edge of the city with plans for industrialization.

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Inabouttwodozenpropertydeals,theHillsboroEconomicDevelopmentCouncilhas acquired94acresinrecentmonthsfor$68.5million.

ThelandisintheJacksonEastarea,accordingtopublicrecordsandcityofficials,a fewmilesfromIntel'sRonlerAcrescampus.Whileithasnotbeendesignatedfora specificuse,Hillsboro'seconomicdevelopmentdirectoremphasizesthecity'sneedfor industrialland.

The94acres,alongSewellAvenueandMeekRoadonHillsboro'snorthernedge,fall shortofthe800acresneededbymanymajorsemiconductor"fabs."Yetglobal computer-chipmakingcompetitionhasplacedfreshemphasisonhowmanyacres OregoncanspareforfirmslikeIntel.Tobesure,therewasnoindicationtheproperties purchaseandIntelwereconnectedotherthanbyproximity.

DanDias,Hillsboro'seconomicandcommunitydevelopmentdirector,saidthepointof preparingthelandforredevelopmentis"togoaftersomeofourcity'stargetindustries," includingelectronicsmanufacturing,advancedmanufacturingandpossibly biotechnology.Someofthelandwillseeinfrastructureimprovementssuchassewer linesandroads,hesaid.

Industrialpropertiesspreadacrossmorethan1,200acresinHillsborosupportthe semiconductorindustry.DiashighlightedHitachiHi-TechAmerica'soutpost,which openedin2022,andothersemiconductor-industrysuppliersaslocalwins.

Diasisamongthosewhosaytheregionandstatelacksmoderate-to-largeindustrial sites,asituationhesays"rendersusataprettysignificanteconomicdisadvantage, especiallywithsomeoftheglobalandnationaltrendsthathavebeengoingon."

ThePortlandmetroindustrialvacancyratewas4.1%inthefirstquarterof2024, accordingtorealestatebrokerageCBRE.

Diassaid,"Theregionsignificantlylacksindustrial-readysitesthatarecompetitivefor, andcanbereadyfor,knownorunknownopportunitiesthatmayarisefromthis increasedinvestmentinthe(semiconductor)industry."

Insomeways,thelandtransactionsareyearsinthemaking.Oregonlawmakersallowed JacksonEast,amuchbroaderareaencompassing550acres,intotheurbangrowth boundaryin2014.Hillsborofinalizedanurbanizationplanfortheareain2022.

Now,federalCHIPSActmoneyiscomingintoHillsboroviaIntel'srecentlyannounced $36billionexpansionatGordonMooreParkatRonlerAcresafewmilessoutheastofthe urbanrenewalagency'srecentlyacquiredproperties.

Diasnotedtheimportanceofgettinglandreadytoreceiveprivate-sectordollars,saying, "ThiseffortbyHillsboro,topositioncompetitivesitesthatarewithinminutestothe existingindustry,iscriticaltoourcommunityandthestate'seconomicsustainability."

WhenHitachicametotown,thedevelopmentcouncil'splaybookwastobuy46acres andpreparethewayforthefirm,whichnowoperatesanearly200,000-square-foot facilityat3600N.E.HuffmanSt.

Diaswasaskedifanysimilaragreementswereinplacewithacompanyforthe94acres. Hereplied,"Nothingtoshareonthatfrontatthistime."

Diasdidsayofficialshaveconsideredwhetherthislandcouldcombinewithproperty alongnearbyHuffman"foranevenlargertypeofacampusopportunity,likeamegaindustrialproject,ifyouwill.Butagain,forus,it'sreallyaroundmakingthemostofvery scarceindustrialland."