EUGENE, Oregon — Sierra Pacific Industries plans to spend $253 million on upgrades to its Eugene, Oregon, sawmill site, according to published reports.

The Register Guard newspaper reported that the current sawmill houses three production lines in three separate buildings, and it plans to reconstruct the lines to be under one roof making the sawmill more efficient, and, as a result, retain its employees. 

The newspaper reported that Sierra Pacific was awarded tax breaks as part of the Oregon Strategic Investment Program (SIP), which allows businesses to forgo paying property taxes for 15 years on capital investments, such as new equipment. Investments beyond the first $100 million are exempt from property tax for 15 years. Sierra Pacific would see savings of about $7.9 million during that time. 

In exchange for the tax exemption, Sierra Pacific promises to maintain its current staff of 347 employees at the site for the SIP period, and pay a "service fee" worth 25% of its property tax savings to the local non-education governments.