The Clatsop County Board of Commissioners on Wednesday approved a Strategic Investment Program agreement with Georgia-Pacific, signaling their support for a roughly $152 million capital investment project aimed at replacing a paper machine at the company’s Wauna Mill.

The Strategic Investment Program incentivizes large capital investments through an alternate taxing structure. In rural communities, the first $40 million of a project is taxed, and the rest — up to $500 million — is exempt. A portion of the savings goes back to the community.

County Manager Don Bohn said the intent of the state program is to help companies stay competitive and maintain jobs. The Wauna Mill is among the county’s largest private-sector employers.

“Oftentimes, these are the difference-makers on whether the investment’s made,” he said. “The way that it works in the private sector is it’s very competitive on where these investments are made within companies across state lines, and so I think for Clatsop County, being competitive right now, given all the other economic challenges, it’s important for us to be supportive of job retention. And these are family-wage jobs, and we all know how important those are to a community.”

Commissioner John Toyooka shared similar sentiments, adding that maintaining economic opportunities in the community is particularly important as the county anticipates potential revenue losses connected to the state’s draft habitat conservation plan.

“Having an economic commitment available to this community is huge,” he said.

The agreement, which has also been approved by the Port of Astoria, will now go before the Oregon Business Development Commission for review.

Under the proposed 15-year agreement, a quarter of the amount Georgia-Pacific saves through the tax exemption would be paid back through a community service fee available to seven local taxing districts, including Clatsop County, the Port and the Sunset Empire Transportation District.

The agreement also provides that 5% of the company’s savings from the tax exemption be set aside for a community impact fee. Of that, 2% would go to the Clatskanie Rural Fire District, 2% would go to the Clatsop County Rural Law Enforcement District and 1% would go to Westport Fire and Rescue — all emergency responder agencies serving the area where the mill is located, Bohn said.

The project under the Strategic Investment Program agreement includes improvements to buildings and structures, machinery, equipment and fixtures and personal property. Jeremy Ness, Wauna Mill’s vice president and mill manager, told commissioners that the company plans to take its 1965 vintage paper machine and upgrade it to a state-of-the-art machine.

“That allows us to use more cost-efficient raw materials and gives us flexibility to make a much wider range of product attributes, so we can better serve our customers and make different products,” Ness said. “Most importantly, it creates an environment that’s safer and more fulfilling for our employees, so this is a really big deal for us.”

Ness started at the Wauna Mill 25 years ago. He said the facility has allowed him to provide for his family and has provided stability and opportunities for professional growth.

“My main goal is to make sure we keep it competitive to provide opportunities for future generations,” he said.