Local Incentives for Business in Sandy
Although the City Council's current policy regarding new business and construction states that "all new growth should pay for itself", it also recognizes a role for "limited direct financial incentives or tax subsidies". The Sandy City Council encourages new development that helps meet specific community goals, or strengthens the local economy. Available local subsidies and other opportunities unique to the City of Sandy are listed below:
Permanent Covered Structures Grant Program: The Permanent Covered Structures grant program was a subsection of the Façade Improvement Grant Program, a grant program offered by the City of Sandy Urban Renewal Agency. Additional outdoor seating in Sandy had been a desired amenity for many years – the COVID-19 crisis added urgency to this concept. This program allocated resources from the Sandy Urban Renewal Agency (SURA) to provide 100% of the up front funding to construct permanent outdoor covered structures for outdoor dining and athletic activity. Applicants were responsible for reimbursing the City of Sandy for 20% of project costs at the completion of the project. After two rounds of this program, when all construction is complete, the SURA will have approved and built between 8 and 10 structures at businesses around Sandy. [this program is no longer active]
City of Sandy Enterprise Zone: The City of Sandy contains one of the four enterprise zones in Clackamas County. Building your business in an enterprise zone provides qualifying businesses a property tax abatement on new construction and equipment purchases for 3 or 5 years, depending on the average wage of jobs created by the project. Click on the link for more information.
City of Sandy E*Commerce Zone: Sandy is one of 15 cities in Oregon that has received an e*commerce designation from the State of Oregon, which grants special status to further encourage electronic commerce or “e-commerce” investments within the city. Qualifying businesses may receive a credit against the business’s annual state income or corporate excise tax liability equal to 25 percent of the investment cost made in capital assets used in electronic-commerce operations. Maximum allowable annual credit amount is $2 million.
City of Sandy Facade Program grants: Grants are available to assist with facade repair on existing commercial buildings and facade construction on newly constructed commercial buildings within the urban renewal district. The City of Sandy Facade Improvement Program provides matching grants of up to $41,500 for exterior improvements that are intended to help commercial property owners bring their buildings into compliance with our "Sandy Style" design standards. These grants are subject to conditions. Please contact the City of Sandy's Development Services Department (503-489-2160 or planning@ci.sandy.or.us ) for more information.
City of Sandy Tenant Improvement Program: The Tenant Improvement Program is a matching grant program offered by the City of Sandy for restaurants and other food or beverage service businesses. The purpose of this program is to a) help to address the cost of a commercial kitchen as a barrier to entry to the restaurant industry by offering grant assistance to business owners looking to create a new commercial kitchens in Sandy, and b) to encourage investment in existing restaurants and similar businesses in Sandy by offering cash incentives to upgrade their facilities. Covers everything from new lighting and flooring in your dining room to new ADA-compliant bathrooms to commercial hoods and grease interceptors.
In 2020, the Sandy City Council approved the expansion of the Tenant Improvement Program to include childcare businesses (preschools and day care centers) in addition to restaurants. The purpose of this change is to encourage the establishment of additional childcare businesses in Sandy to help address the shortage of businesses in this industry in Oregon generally and in Clackamas County specifically. In addition to all interior modifications allowed by this program, the Tenant Improvement Program also covers costs associated with the establishment of outdoor play areas for childcare businesses as required for this classification of business by the State of Oregon. This includes fencing for an outdoor play area (min. height - 5 feet) and permanently installed play equipment. Please contact the City of Sandy's Development Services Department (503-489-2160 or planning@ci.sandy.or.us ) for more information.
No sewer or transportation SDC charges in the Downtown Commercial zone for changes in use: The City of Sandy does not collect system development charges for sewer or transportation in the downtown commercial zone (C-1) provided the following qualifications are met:
- Only existing buildings of 6,000 square feet or less of GFA (Gross Floor Area) qualify
- No change in the overall footprint of the building is allowed
- Only applies to changes of use (i.e. retail to restaurant, office to retail, etc.) within existing buildings
Gigabit fiber is available to any building within city limits: SandyNet, the City of Sandy's municipally owned internet service provider, can provide gigabit fiber to any commercial or industrial building within city limits. One time buildout costs do apply, but rates are very competitive. SandyNet also offers VOIP phone service, offsite backup and web hosting services for business. Don't mess around with inferior services like T-1s and DSL; get the fastest internet service available in Oregon! Click on the link for more information. [UPDATE: Funds are now available to assist building owners with buildout costs in within the urban renewal district. Please contact SandyNet Fiber at (503) 668-2923 to order service and/or schedule an installation for your business.]
SDCs waived for outdoor seating for restaurants: In 2019, the City of Sandy revised its policy on charging systems development charges (SDCs) for outdoor seating for food service businesses by eliminating them entirely. This was proposed at the behest of the Economic Development Department as a "business-friendly" measure to eliminate an unnecessary financial burden on businesses and to encourage restaurants to consider additional innovation in our restaurant industry. In most cases, a simple review by the Development Services Department is now adequate for installing customer seating outdoors for this classification of business.
SDC financing: The City of Sandy offers the option to finance system development charges over a 10 year period to help offset the cost of starting a new business. Interest rates are based on current market rates.
RRED (Rural Renewable Energy Development) Zone: The Clackamas County RRED zone is designed to encourage investments that harness wind, geothermal, solar, biomass and other alternative and renewable energy production projects. RRED zone incentives provide qualifying businesses a property tax abatement on investments that harness the renewable energy sources mentioned above for 3 or 5 years, depending on the average wage of jobs created by the project. Click on the link for more information.
