April 26--Correction appended.
Electronic manufacturer Vanguard EMS will spend $1.9 million to move from one Beaverton facility to another and hire 15 new employees in five years in exchange for a five-year tax exemption.
Vanguard is the second company to be approved under Beaverton's Enterprise Zone program. The program offers companies property-tax exemptions for spending at least $1 million to expand and hire within the zone.
Vanguard's application, which was submitted March 18, was approved by the city but is awaiting final approval from the county, Beaverton spokesman Bill LaMarche wrote in an email.
Beaverton's enterprise zone covers 4.46 square miles, mostly in central and northern Beaverton. It extends from Southwest 170th Avenue to east of Oregon 217.
Vanguard will move from its current 70,000-square-foot building at 9825 S.W. Sunshine Court to 3725 S.W. Hocken Ave., a 76,000-square-foot building on the Tektronix campus. The Hocken Avenue building is now vacant, according to a city press release. Both properties are within Beaverton's enterprise zone.
Vanguard bought the Hocken Avenue site this year and has already started construction on building improvements for a planned July move-in, said Vanguard Chief Executive Floyd Sutz.
The company considered moving to Tigard but chose this location for its vertical space and proximity to light rail, Sutz said.
Through the enterprise zone, Vanguard will receive a five-year tax exemption on the building improvements and new equipment but will still pay some property taxes, Sutz said.
"We are delighted to be making things in America and to be adding jobs here," Sutz said.
Vanguard makes electronic devices for defense and security, medical and industrial uses. The company has 144 employees, according to the press release.
Under the rules of the program, three-quarters of Vanguard's employees must earn more than double the state minimum wage, which is currently $8.95 an hour, after one year of employment.
Business Oregon, who oversees the state's enterprise zone program, approved Beaverton's enterprise zone in July 2012.
Since then, the city has expanded its zone twice, in September and March. The most recent expansion includes about two-thirds of a square mile outside Beaverton's boundaries in unincorporated Washington County.
Vernier Software & Technology received a five-year exemption in November under the enterprise zone program to build a $2.8 million expansion of its site and hire around 10 new employees.
Nike recently announced plans to expand its World Headquarters campus, which sits within Beaverton's enterprise zone. But as of this week, the city has received no other enterprise zone applications, according to LaMarche.
Update: This story has been updated with comment from Vanguard Chief Executive Floyd Sutz. The story has also been updated to add that Vanguard's application is for a five-year property-tax exemption and that it still awaits county approval.
-- Nicole Friedman
Correction: A previous version of this story incorrectly stated that Vanguard would receive a full property-tax exemption for five years. Vanguard will only receive a property-tax exemption on building improvements and new equipment, according to Vanguard Chief Executive Floyd Sutz.
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