Oregon Public Broadcasting

The Portland Development Commission on Wednesday will consider granting a forgivable $8 million loan to Daimler Trucks North America for its new corporate headquarters and parking garage on Swan Island.

The German corporation will not have to pay back the loan if it increases its local staff by 400 people, as promised, over five years.

PDC's Board of Commissioners will consider the subsidy at its 3 p.m. session Wednesday at 222 N.W. 5th Ave.

Daimler expects to invest $152 million into the project, scheduled for completion by 2016.

PDC, the city's urban renewal and economic development agency, is not demanding any collateral or loan guarantees.

PDC is part of a multi-agency subsidy deal negotiated with Daimler to secure the company's commitment to staying in Portland and expanding its operations here. The state of Oregon and Port of Portland agreed to provide other incentives. Daimler also expects to seek $7 million in property tax abatements by building in the Portland Enterprise Zone.

In addition to securing additional white-collar jobs and a major Daimler financial commitment to remaining in the city, local governments stand to reap $38 million in property taxes from the new building over the next 15 years.

PDC will use money from its Interstate Corridor Urban Renewal Area to provide the forgivable loan.

Steve Law can reached at 503-546-5139 or stevelaw@portlandtribune.com.

This story originally appeared on Oregon Public Broadcasting.

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