Oregon
How did a small Oregon town become a hub for industrial development?
What to know about Millersburg’s economic development
Millersburg is an attractive place for big companies to build new facilities, making the small town a hub for economic development.
Ball Corporation, Timberlab, ATI and Gordon Truck Centers are pouring a combined $500 million, at least, to build manufacturing plants and other businesses in Millersburg.
That’s the kind of economic development any city would love. Large employers bring jobs and an expanded tax base, among other benefits.
In a city of 3,000 like Millersburg, just south of Salem, those numbers make a major impact.
While some governments get “caught up in red tape and rule books” that make development difficult, Linn County Commissioner Roger Nyquist said, Millersburg city leaders welcome businesses.
“How can we get to yes for you on this?” Nyquist said.
When Millersburg uses the slogan “We Are Open for Business” on its website, it’s not just a line.
Millersburg’s low taxes, large tracts of developable land and easy access to Interstate 5 and rail service have made it popular for businesses. Few cities along Oregon’s predominant north-south arterial highway have experienced the city’s level of industrial growth, and certainly none of its size.
“What the difference is that attitude is from our council,” former City Manager Kevin Krietman said. “I will tell you that historically Millersburg has always had a council that understands the value of the industrial base and protecting that industrial base and growing that base for the benefit of the community.”
Millersburg was incorporated in 1974 to keep taxes low
The town was established as Millers Station in 1871 when a rail station was built for the Southern Pacific Railroad. It became a large shipping point for cattle in the 1880s and renamed Millersburg around 1900.
The U.S. Bureau of Mines established a facility to produce zirconium there in the 1940s. That plant was sold to Wah Chang and the company produced metals including hafnium, tantalum and niobium. The company was later renamed Teledyne Wah Chang and it became a Superfund site.
The environmental clean-up took 20 years.
The Willamette Kraft Corporation built a paper mill along one of the two rail lines that cut through it in 1952 to process wood chips into kraft paper. When it was owned by Weyerhaeuser, the plant was known for a smell reminiscent of rotting cabbage that greeted people driving by it on I-5.
“That was the smell of money, man,” Nyquist said.
Millersburg incorporated as a city in 1974, partially so businesses and residents could avoid being annexed into Albany and pay that city’s higher property taxes.
About a third of the city’s land was designated for residential development, which left lots of room for industrial and commercial growth.
International Paper created new urgency in attracting industry
The paper mill closed for good in 2009 and cost 270 workers their jobs. It was then owned by International Paper and torn down by 2012.
At the time of its closure, the mill was paying about $2.6 million per year in property taxes, the most in Linn County.
“We lost a lot of jobs,” Millersburg Mayor Scott Cowan said. “And so that was a big impact, and then of course as that sort of was the immediate situation once that news got out was of course the financial impact to the city was by the franchise fees and taxes from the IP property, we felt that.”
The loss of that revenue was significant to the taxing districts — officials had to find ways to replace the revenue to pay for city services and road repair, for example.
Millersburg didn’t levy a property tax for its first 40 years because the city earned enough money from franchise fees to pay for basic city services. It now charges the maximum $3.50 per $1,000 of assessed value. Most of that goes to contracted fire and sheriff’s services.
The city long tried to attract businesses to fill the gap left by International Paper.
In 2008, Peak Sun Silicon broke ground on a 10,000-square-foot building where it would employ 500 people to product an ingredient in solar cells.
The state foreclosed on the property when Peak Sun defaulted on a $14 million loan in 2012.
In 2019, the state gave $25 million to Linn County to build an intermodal facility on a portion of the former International Paper property.
That project cost $35 million, but has never operated.
Why companies are building in Millersburg now
When Timberlab was looking to build a new facility to manufacture mass timber, the company considered locations around the Willamette Valley including Independence and Corvallis, President Chris Evans said.
Then Timberlab found a 33.5-acre site in Millersburg. The location had challenges. It had a fish bearing stream, needed an entry road and the main connecting road to Old Salem Highway was under construction.
Still, Timberlab purchased the land from the city and expects to complete its first building this year. That project will bring an estimated 100 jobs to Millersburg.
Gov. Tina Kotek, who attended the March 2025 groundbreaking, said Oregon is “leading the way” in mass timber and pointed to the new roof at the Portland International Airport terminal.
“The city really facilitated taking a lot of the issues out of the sites here, so they could invite somebody into the community and have a quicker turnaround to have something rezoned from agricultural to industrial,” Evans said at the facility’s groundbreaking.
That will include a 185,000 square foot manufacturing facility and it has plans for 85,000 and 126,000 square foot buildings in the future.
Companies that build in Millersburg reap the same tax rewards as its citizens.
Property owners in Millersburg pay a combined tax rate of $15.61 cents per $1,000 of assessed value, one of the lowest rates in the state for a city that offers the services that Millersburg does.
A company building a $100 million facility can save over $1 million per year on property taxes compared to other cities if it builds in Millersburg.
The money brought in from taxes and fees also means residents don’t have to worry about being barraged with bonds and levies from the city.
“But don’t worry, our residents still complain about our taxes,” city manager Janelle Booth said.
Companies like Timberlab also get a tax break by building in enterprise zones, areas designated for large-scale industrial development by the state.
Enterprise zone projects have to meet requirements including a minimum investment cost, employee count and must pay workers between 130% and 150% of the county’s average wage.
Businesses are also exempt from paying property taxes on capital improvements for three to five years. In a rural enterprise zone, such as the one in Millersburg, businesses could be exempt from paying taxes on those improvements for up to 15 years.
In the meantime, the city will still benefit from the Timberlab development as it collects franchise fees from the company. Millersburg received nearly $1.2 million per year from Pacific Power last year, and that will go up with more power being used by Timberlab and Ball Corporation.
That money pays for basic city services like roads, parks and city administration.
“We’re looking at it for that long-term benefit, too,” Booth said.
Infrastructure investments make economic development possible
Millersburg has invested heavily in infrastructure that benefits residents and businesses. The city shares water filtration and wastewater treatment facilities with Albany.
Pacific Power owns and runs a regional operations center in the southern part of the city.
Millersburg city leaders convinced Pacific Power to build a new substation on Conser Road across the street from the Jefferson Fire Department station in 2024. That provides large industrial users with plenty of electricity for whatever they plan to build.
Several large parcels inside the city limits were zoned industrial and never developed. Over the years, Millersburg acquired several of those parcels for free or close to it.
To spur economic development, the city took an active approach in marketing the industrial properties.
The city updated its comprehensive plan in 2020, which essentially served as a sales brochure for prospective development.
“That’s an incentive that we can have with the industries to encourage them to come in,” Kreitman said. “We went through and we put together a presentation and the state asked us to come and talk about it for other communities to look at. It’s really helped us.”
The city council opted to be selective which companies it would sell properties to. For example, they chose not to sell land for warehouses that employ few people.
“As the property owner, the price of the property is one of our tools to get what we want in here,” Booth said.
The city still owns about 70 acres of flat, undeveloped land that is zoned industrial.
Ball Corporation development leads to interest from others
Cowan said Ball Corporation’s plans to build a plant helped spur much of the new economic development in the city.
“We heard about another company that was interested, but it was a lot of this loose interest and no one really serious until Ball came along,” Cowan said. “That really was a big one.”
Ball Corporation’s facility could be larger than 500,000 square feet when it’s finished, according to city planning documents, but will be smaller to start, Kreitman said.
It is unclear how many jobs the Ball facility will provide once it’s finished. The company did not respond to requests for comment from the Statesman Journal.
Center Market is planning a new 5,200 square foot building for its store and offices. Pure Energy is build a 7,480 square foot building.
Several businesses have announced plans for the former International Paper property.
Aymium, formerly known as National Carbon Technologies, signed a 16-year lease on 22 acres in 2022 to build a plant that uses carbon products to produce things like filters. Linn County approved a pause in that lease in 2025.
“And if they don’t go forward, we’ve got, guess what, flat land available at a reasonable price in close proximity to I-5 and rail,” Nyquist said.
In 2024, Omni Energy agreed to lease the site to transfer biodiesel from train to trucks. That still hasn’t happened.
“It’s going to take some infrastructure investment,” Nyquist said. “The operators want to work out a longer-term lease to justify that investment, and so that’s what we’re working on today.”
Corvallis-based Samaritan hospitals owns a 2.3-acre plot of land in the north part of the city at the intersection of Old Salem Highway and the I-5 interchange.
The hospital system planned to build a regional medical center when it purchased the property for $1 million, according to city documents.
“While we do not have definitive plans for that property at this time, we do consider it a very important asset that can help us meet community health needs as Millersburg and surrounding areas continue to grow,” Larissa Balzer, vice president of strategy and planning at Samaritan Health Services, said in a statement.
Millersburg still lacking in commercial, residential development
While Millersburg has a lot of industrial development, it lacks commercial businesses.
Humpty’s Dump Bar & Grill and Oregon Barbecue Company are among the few commercial properties in town.
The Love’s Travel Stop just off the North Millersburg exit, which opened in 2018, is the city’s most recent commercial development.
The city owns about 8 acres along Old Salem Highway between the new fire station, which the city built for $5 million in 2023, and Center Market. It has designated that for commercial development.
Unlike many small Oregon cities, Millersburg doesn’t have a downtown.
“We’re hoping to create one,” Booth said.
The city also lacks affordable housing. The only houses for sale in Millersburg are advertised for over $500,000. There are no apartments or multi-family housing.
“That is the constant feedback we hear from our community and our council and our planning commission, 10,000 square foot lots is the hill to die on for our folks,” Booth said.
There are a couple large parcels of undeveloped property zoned for residential development in the city limits. The city had significant housing growth until 2023, when the last parcel of developable land in the city limits was built on.
City leaders say they can’t expand the urban growth boundary to the north or west because of the prime farmland in those areas.
The city is looking to expand to the east side of I-5 at a long-hoped-for new interchange for more commercial and high-density residential growth.
Millersburg also owns land it intends to use for a YMCA building and a school, something the city hasn’t had since the last one closed in 1983.
“Last we knew, they are very interested in getting something in here,” Booth said.
Bill Poehler covers Marion and Polk County for the Statesman Journal. Contact him at bpoehler@StatesmanJournal.com
CORVALLIS, Ore. — A Benton County man has been sentenced to more than six years in prison after prosecutors say he held his brother at knifepoint inside their family home, a confrontation that ended with police shooting the wrong person as the victim tried to escape, the Benton County District Attorney’s office said in a media release.
On Thursday, June 18, John Dakota Lyon pleaded guilty to Attempted Kidnapping in the Second Degree, Unlawful Use of a Weapon, and Coercion, according to a news release from the Benton County District Attorney. He was sentenced to a total of 77 months in prison and two years of post-prison supervision.
The case stems from the morning of Jan. 6, when Maverick Lyon was home visiting his parents during winter break from college. Prosecutors said Dakota Lyon, his brother, was living at the home after recently being released from the Department of Corrections.
In February 2023, Dakota Lyon was sentenced to 58 months in prison for convictions of Attempted Assault in the First Degree and Unlawful Use of a Weapon, the release said.
On Jan. 6, prosecutors said Dakota Lyon accused Maverick Lyon of conspiring with their father to do harm to him. Dakota Lyon armed himself with a large kitchen knife and, while holding onto Maverick Lyon’s shirt, pulled him throughout the house, implying he would harm him with the knife, according to the district attorney’s office. Despite Maverick Lyon’s pleadings, prosecutors said Dakota Lyon refused to release him or put the knife down.
Prosecutors said Maverick Lyon convinced Dakota Lyon to allow him to grab his own kitchen knife under the guise that they would leave the residence to confront their father together. Their father, who saw and heard what was happening through a surveillance system set up at the home, called 911 to report the crime, the release said.
Multiple Albany Police Department officers arrived and were able to see two men through a back door window, including one with a knife, according to the district attorney’s office. After a brief conversation between officers and the men, prosecutors said Maverick Lyon broke free and rushed out the back door.
The district attorney’s office said Maverick Lyon still had a knife in his hand as he began to break the plane of the door, and officers were standing near the door. Prosecutors said Maverick Lyon began dropping the knife, but officers, fearing for their lives and the lives of other officers, fired their weapons. Maverick Lyon was struck several times.
An earlier Officer Involve Shooting review by the Benton County District Attorney’s Office found the officers’ use of force was justified, the release said.
Officers rendered first aid, and while being treated, Maverick Lyon said, “You shot the wrong guy,” according to the district attorney’s office.
Dakota Lyon was taken into custody without further incident, and the knife he was believed to have been possessing was located near him, prosecutors said. He has been in custody since Jan. 6.
After surgery and a lengthy recovery period, Maverick Lyon “appears to be doing well,” the release said.
The district attorney’s office said methamphetamine may have played a role in Dakota Lyon’s actions. A urine sample taken from him that day tested positive for methamphetamine, and he was known to use methamphetamine in the past and was believed by those close to him to have recently begun using methamphetamine again, according to the release.
“The tragic shooting was a direct result of Dakota Lyon’s actions. As Dakota marched Maverick around the house at knife point, Maverick feared for his life and wanted nothing more but to escape his drug crazed older brother. But for Dakota’s actions, police would not have been called, Maverick would not be a victim of kidnapping, unlawful use of a weapon, and coercion, and the police would not have shot Maverick,” Chief DDA Amie Matusko, who prosecuted the case, said in the release.
At sentencing, Dakota Lyon’s attorney, Christian Strahl, acknowledged Dakota Lyon’s responsibility in Maverick Lyon’s shooting, the release said. Strahl indicated the remorse Dakota Lyon felt, saying Dakota Lyon wished he could have taken the bullets instead of Maverick, according to prosecutors.
“While this sentiment is appreciated, true accountability would be remorse in having raised a knife towards his brother and regret that the lives of Maverick and the family are forever changed,” Matusko said.
The biggest and final weekend of official visits is finally here for the Oregon Ducks. The program has made the most of its prior rounds of visits, adding five commitments this month alone.
Dan Lanning and his staff will get a chance to lock in a top-five recruiting class this cycle with another tremendous list of visitors this weekend. Oregon will welcome back a pair of committed gems in the class, including quarterback Will Mencl and edge rusher Rashad Streets. However, the biggest visitors are those who have yet to decide on their college future.
Here’s a look at which recruits are expected to be in Eugene this weekend, as well as where they rank in the Rivals Industry Ranking.
- 5-star WR Xavier Sabb (No. 30)
- 4-star QB Will Mencl (No. 46) (Oregon commit)
- 4-star EDGE Rashad Streets (No. 47) (Oregon commit)
- 4-star WR Tae Walden Jr. (No. 69)
- 4-star LB Brayton Feister (No. 135)
- 4-star DL Brayden Parks (No. 166)
- 4-star TE Anthony Cartwright III (No. 343)
- 4-star RB Caden Waye (No. 359)
- 3-star IOL Lex Mailangi (No. 697)
It’s a loaded weekend for the Ducks, and they are well positioned to land several of the visiting recruits this summer. With Mencl and Streets both in town as well, two of the most vocal recruiters in Oregon’s class, don’t be surprised if the Ducks manage to earn a commitment or two before the weekend is over.
On the heels of adding wideout Dakota Guerrant to their class, the Ducks are the frontrunners for Xavier Sabb, who is making the trip across the country from New Jersey. Sabb, whose brothers both play at Alabama, is one of Oregon’s favorite targets in the cycle, and one that Mencl has publicly called for the Ducks to bring to Eugene.
As a junior, Sabb played both receiver and safety at Glassboro High School. He made 59 catches for 896 yards and 13 touchdowns last season and was named Gatorade Player of the Year in New Jersey. After visiting Alabama last weekend, Oregon will get the last word on Sabb’s recruitment and could add a pair of elite receivers to pair with their star quarterback.
The Ducks are also in great position to finalize a commitment with both linebacker Brayton Feister and tight end Anthony Cartwright III. Cartwright will commit on June 28, and Oregon is already viewed as the leader in the race for the 6-foot-5 pass-catcher from Detroit. Feister is fresh off a visit to Georgia, and the Bulldogs made a big push. However, the Ohio native and No. 10 linebacker in the class has always been strongly linked to the Ducks. An official visit this weekend could be enough to push the recruitment to the finish line.
There are a couple of question marks making their way to campus as well. Wide receiver Tae Walden Jr. and defensive lineman Brayden Parks are both leaning elsewhere, but the Ducks have a reasonable shot in both recruitments. Auburn has led the way for Walden, but a strong visit to LSU last week did make a difference. Oregon could do something similar this week, but as of now, he is thought to wind up in SEC territory.
Parks has been a Notre Dame lean, but the momentum over the past few months has swung between the Irish and the Ducks. Oregon gets the final say this weekend, and it could make the difference. Parks didn’t commit after he visited South Bend last weekend, leaving the door open for the Ducks to swoop in at the final hour before the dead period.
Oregon has been a leader for Mater Dei offensive lineman Lex Mailangi as well, but recent visits to Cal and UCLA have narrowed the gap. The Ducks could use another lineman in their class, with Gus Corsair being the only interior lineman committed. The Ducks have some work to do to regain the lead in the race.
Caden Waye is a late add to the list. Although he has had the Ducks at the top of his list since he narrowed his recruitment in the winter, his list has changed after a trip to UCF last weekend put the Knights in his top three. Oregon already has four-star running back CaDarius McMiller committed and is pushing hard for four-star Landen Williams-Callis. Waye is a bit of a wild card for the Ducks, so it will be interesting to see how his visit to Eugene goes.
Contact/Follow @Ducks_Wire on X (formerly Twitter) and like our page on Facebook to follow ongoing coverage of Oregon Ducks news, notes, and opinions.
PORTLAND, Ore. (KOIN) — Oregon State Police are investigating a deadly officer-involved shooting that took place in Lincoln County on Wednesday.
Officers from the Newport Police Department, as well as OSP, responded to the 1500 block of the Siletz River Highway just before 4 p.m. to conduct a follow-up investigation, which later escalated into a fatal shooting.
The suspect is dead, and no officers or members of the community were injured, OSP said.
The investigation is ongoing.
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