Avago Technologies seeks three-year tax exemption
EUGENE, Ore. - Avago Technologies, the business that purchased the former Hynix facility in November, expects to bring hundreds of jobs to Eugene and boost the city's economy.
At a work session Wednesday, the city council will learn more about Avago's investment in the facility and its plans for the future.
Avago is seeking a tax exemption on a proposed investment of $400 million.
Under the West Eugene Enterprise Zone, Avago is eligible for a three-year tax exemption. The company is also requesting a two-year extension of those tax breaks.
"And it's really based on company's willingness and ability to pay higher than average wages. So the company has indicated that they will meet that standard, so they asked for consideration of the two-year extension," said Denny Braud, community development director.
Under the enterprise zone, five years is the maximum time that Avago could receive a tax break. City officials said even with the tax exemptions, Avago will be one of the largest tax payers in the community.
The work session starts at noon Wednesday. No decision will be made at this time.
Avago is a publicly traded company headquartered in San Jose, Calif. It plans to use the plant in Eugene to manufacture components used in mobile phones.