EDITOR’S NOTE: This report is a comprehensive update to the investigative coverage originally published by the Herald on May 11, 2026, titled “The Phantom Halt: Mayor Beach Pace Claims Credit for a Data Center Deadline…” Following recent developments and a formal communication received from the City’s Communications Manager at 5:07 PM on May 14th, we have moved immediately to incorporate official clarifications. Although the Herald did not review the transmission until 8:07 PM, on May 14th, we have taken previous drafts offline to ensure this updated forensic analysis reflects the most current information regarding Mayoral authority and the 21-day legal window (ORS 285C.160). The Hillsboro Herald is committed to providing the most accurate accounting of the fiscal decisions impacting our community.
The recently reported Enterprise Zone transactions for Data Centers in Hillsboro, Oregon disclosed by the Oregonian (https://www.oregonlive.com/silicon-forest/2026/05/hillsboro-is-promising-data-center-tax-breaks-into-the-2050s.html) touched off a storm of media, public outcry, and press releases here in our community and beyond. Those approvals were confirmed, and they are listed online. After a few days had passed, calls for something to be done about the Enterprise Zone deals grew rapidly, and the Oregonian ran a follow-up story on May 13th: https://www.oregonlive.com/silicon-forest/2026/05/hillsboro-mayor-orders-halt-to-new-data-center-tax-breaks.html
The Herald reviewed the Oregonian article and confirmed that they used the word “halt.” Our story included a reference to a “Phantom Halt” because we believe that no Mayor of Hillsboro can simply halt something by order or action.
The Hillsboro City Manager’s office has since confirmed this procedural reality, clarifying that Mayor Beach Pace “discussed stopping any further approvals” rather than issuing a formal order. The Herald acknowledges this distinction.
However, the core of our investigation remains focused on the calendar rather than the terminology. A review of the City’s own official “Data Center FAQ” published on May 8th, three days prior to the announcement, reveals that a pause in applications was already a logistical certainty. The City stated:
“Given the approval process timeline, the City of Hillsboro does not anticipate any additional data center applications could be submitted after May 7, 2026… thereby creating a pause.”
Furthermore, a state-mandated moratorium on new data center tax breaks is set to take effect on June 6th. This indicates that the “halt” described on May 11th reflects current calendar and legislative constraints rather than a unilateral administrative order.
The 21-Day Finality Window
The central concern for many residents, and the basis for Councilor Kipperlyn Sinclair’s call for an Emergency Meeting, is ORS 285C.160. Under Oregon law, Enterprise Zone agreements are generally not legally effective until 21 days after public posting.
Between March and May 7th, 18 data center-related applications were reportedly processed. Because of the 21-day rule, many of these deals are currently in a “waiting period.” If the City Council waits until the regularly scheduled meeting on June 2nd to discuss these items, the 21-day window for many of these agreements will have already expired, making them legally binding contracts.
Transparency and Public Records
On May 7th, 2026—prior to the Mayor’s recent public statements—the Hillsboro Herald filed a formal Public Records Request seeking:
- Signed copies of all Enterprise Zone agreements completed since February 1st.
- Verification of the public notice dates for the 21-day effective period.
- Internal briefings regarding the fiscal impact of these extensions through the year 2051.
On May 12th, 2026, the City Recorder’s office informed the Herald that a cost and time estimate for these records would not be available until Friday, May 22nd.
Moving Forward
In an email to The Oregonian on Monday, May 11th, the text of which was provided to the Herald for the first time tonight, May 14th, 2026, Mayor Pace addressed questions regarding the legality of the tax extensions and the call for a special session.
When asked how staff determined these agreements met statutory qualifications, the Mayor responded on May 11th:
“Our staff are working with Business Oregon and our city attorney to understand and evaluate our legal obligations for application approval. We, as a Council, require our staff to provide that legal guidance to us so that we can make informed decisions about our next steps…”
Regarding her support for an Emergency Meeting/Special Session, the Mayor wrote:
“The staff need time to research, get legal clarity and evaluate options. In order to have an effective special session we have to have the information to brief us (the council) and then we can make decisions… Rushing a special session for any reason (campaign or otherwise) doesn’t help.”
While these statements were reportedly authored on May 11th, the full text was provided to the Herald on the evening of May 14th. This timeline is critical; without an immediate Emergency Meeting to review these specific “rolling” contracts, the 21-day legal window (ORS 285C.160) for many of the 18 pending agreements continues to close. Residents may find that, by the time a public discussion occurs, the administrative pause applies only to agreements that have already become legally binding contracts by calendar date.
The Herald will continue to track its most important Hillsboro community story and cover the major developments as they occur.
Thank you.
I have continued to read what City of Hillsboro has published on their website about Data Centers (apologies Dirk if you reported on this already–perhaps in an explanation why these “abatements” certainly could extend decades per site — some are denying this could happen but these two statements sure sounds like it IS to me):
First statement:
“If a business makes additional new investments in buildings, equipment, and/or personal property, they could be eligible to apply
for additional Enterprise Zone exemptions.”
Second statement, with further details on the currently Pending Applications for 11 sites (17 applications. Side Note: explains too why City of Hillsboro’s stated # of Data Centers seems low, and I’d add misleading: a “site” can have many Data Center buildings such as the row on Huffman St, their map shows one site, but 5 huge separate buildings):
“Seven of the sites are existing data center facilities that would be reinvested in.”
While some details are missing (the entire site or partial?) this Gives me concern that Abatements per Site can, and are being extended past the 3-5 years, delaying their eventual payment of property taxes. Who knows how long?
I have read, in social media discussions, that updates are needed constantly at facilities such as these.
And there’s this shameful & appalling detail on Hillsboro’s Enterprise Zones page. Details on tax abatements: one of Hillsboro’s conditions for companies to receive this include LOW requirements for salaries of the few people they employ. Directly contradicts City of Hillsboro constantly boasting development provides “living wage jobs” and therefore is “needed”. Even #2 comes No where close to that! Their statement : “Job Quality/Wages: (1) Years 1-3 of tax abatement, average wage will be $14.75 per hour (2022 Oregon minimum wage) … Average wage will be 102% of Oregon minimum wage, thereafter; (2) Years 4-5 of tax abatement, average wage for all employees will be 125% of Oregon minimum wage”. https://www.hillsboro-oregon.gov/our-city/departments/economic-development/choose-hillsboro/enterprise-zone-program