eCon Update - April 2006
Issue 4, Volume V
NEW EDCO PUBLICATIONS NOW AVAILABLE
 Hot off the presses, the new editions of the Central Oregon Area Profile and the Central Oregon Manufacturing and Technology Directory are now available in both electronic and hard copy formats. The Profile provides a statistical snapshot of the region including current numbers on population, income, employment, housing, other economic indicators and key facts and contacts for utilities, education, and business assistance. The Directory, now in its 5th edition, is designed to illuminate through articles, industry summaries and comprehensive listings an often little understood but critically important segment of the economy – traded-sector employers. Bulk ordering is still possible for EDCO members in quantities over 25 for the Profile ($0.30 each) and for the Directory ($5.00 each). Non-member rates for the Profile are $1 each and $10 for the Directory. To place your order, contact Meg Thompson at meg@edcoinfo.com.
Both publications are also available electronically at no cost at /edco_publications/profile/.
JEFFERSON COUNTY AWARDED NEW ENTERPRISE ZONE
Jefferson County, and specifically Madras and Metolius were officially designated as a new state enterprise zone on April 17th, 2006. The program is designed to attract new jobs and investment with short-term property tax exemptions on new qualifying plant and equipment purchases. The exemption period for most companies is three years. Madras/Jefferson County Chamber of Commerce Director Parrish Van Wert prepared the application, held required meetings and notified affected taxing districts. EDCO played a minor role in the application, but will be managing the new zone, much as it has done since 2004 for the Prineville/Crook County Enterprise Zone. Enterprise zones have proven over the past 20 years to be one of the most effective economic development tools in Oregon for communities seeking traded-sector jobs and investments and the economic activity they bring. For example, Redmond’s e-zone has attracted more than 1,000 jobs and nearly $95 million in new capital investment. In the past two years, the Prineville e-zone has had nine firms approved which are investing over $8 million in new capital improvements and creating an additional 230-250 jobs full-time jobs at above average wages. For more information about the Jefferson County Enterprise Zone or the region’s other e-zones visit: /edco_publications/ezone_brochures/.
OREGON RANKS AMONG LOWEST IN PER CAPITA TAXES
A recent study by the US Census Bureau ranked Oregon near the bottom of the pack in the amount of per-capita taxes its residents paid last year. Oregonians paid $1,791.25 per person in state taxes last year, placing the state at #41 among the 50 states. For comparison, per capita taxes paid in Washington were $2,359.99, North Dakota was the lowest at $1,430.46 and Vermont the highest at $3,600.16. For Oregonians, individual income taxes were far and away the largest portion of total taxes, accounting for $1,290.58 of the total. For a summary spreadsheet of the study click here.
AFFORDABLE HOUSING ISSUE DISCUSSED AT APRIL EDCO BOARD MEETING
The cost of housing, once an advantage for most Central Oregon communities, is becoming an increasingly concerning issue for many employers. The lack of housing stock below $200,000 for sale in Bend, Sisters and more recently Redmond is causing some issues with longer commutes for some employees. This trend is already being felt on the region’s highways between communities with increased traffic volumes. For these reasons, EDCO had guest speakers at the April 13th Board of Directors meeting provide some insights to possible solutions to the problem, which is also being felt in Prineville, Madras and La Pine. Kirk Scheuler, President of Brooks Resources discussed the possibility of a real estate excise fee paid by sellers as a possible solution. Cyndy Cook, Executive Director of the Central Oregon Regional Housing Authority, educated the board about incentive programs that encourage private investment in rental housing developments for low and moderate income families and individuals. Tim Knopp, Executive VP with Central Oregon Builders Association, mentioned several voluntary measures that could be undertaken by the building community to help address affordability. Also discussed were the efforts of organizations like Habitat for Humanity and the fact that the most affordable housing in the tri-county area is in the rental market, which has not kept pace with recent rapid appreciation. All panelists agreed that land (lot) prices, driven by short supply and very strong demand, were the single largest contributing component to the affordability issue. The EDCO board will take up the issue again in June with the hopes of drafting suggestions to communities throughout the region on a menu of actions that can be taken to effectively address rising housing costs.
PAPER INDICATES VIBRANT ECONOMIES DRIVEN BY YOUNG PROFESSIONALS
The International Economic Development Council and Washington Post recently featured stories on a paper co-written by Oregon’s own Joe Cortright titled “The Young and the Restless in a Knowledge Economy”. The paper states that mobile, adaptable, entrepreneurial, and educated 25- to 34-year olds are major drivers of economic success. Interestingly, the Central Oregon region is adding a higher percentage of young adults than other areas of the state and the nation as a whole. In addition to their professional contributions, these new, young residents are helping to change the regional demographics of the next generation by having children of their own. In the past five years alone, the tri-county region added the equivalent of the population of Prineville in new babies born – over 9,000 – giving the region one of the highest overall fertility rates for all races in the nation. For a Washington Post summary of the Cortright’s findings click here and for a complete copy of the 64-page paper click here.
CORIL HOSTS LUNCHEON TO CELEBRATE BUSINESS PARTNERSHIPS
EDCO is partnering with Central Oregon Resources for Independent Living (CORIL) for the second year on a “Celebrating Community Partnerships” luncheon at St. Charles Medical Center, Bend, on May 16th. The event will showcase how CORIL is working with manufacturers and other businesses to provide light assembly, filing, document storage, mailing, secure document disposal and other services performed by people with various developmental disabilities. To date, CORIL has worked with companies such as Columbia Aircraft and U.S. Allegiance for out-sourced services that have increased the productivity and profitability of these firms while reducing defect rates. For more information about CORIL or to attend the luncheon, contact Jim Lee at 771-6184 or jiml@coril.org.
STUDENT JOB FAIR MAY 4th
The Oregon Employment Department (OED) is holding a Student Job Fair for the Bend La Pine School District at WorkSource Bend (near Pilot Butte) on May 4th from 2:00-5:00pm. The event is next in a series organized by OED, and follows a community-wide job fair in Prineville last week that attracted more than 40 area employers with current openings. The Student Job Fair is an opportunity for employers to connect with high school and college students aged 16 or older for open positions and all jobs do not require prior experience. Available slots are filled for employers (26 will be present) for this free event, but OED is looking to get the word out to students all working age students in the area. For more information about the fair or OED’s services call Katie at 388-6095 or visit www.workinginoregon.org.
OREGON AMONG NATION’S TOP BUSINESS-FRIENDLY STATES
According to the non-profit group, Tax Foundation, Oregon is the tenth most “business friendly” state in the nation. Wyoming is number one and New York is number fifty. The study ranks the 50 states on how “business friendly” their tax systems are by reviewing five components for each state: their principle business tax (usually the corporate income tax), the individual income tax, the sales or gross receipts tax, the unemployment insurance tax, and the State’s system for taxing assessments (principally property tax). For more information about the study, visit http://www.taxfoundation.org/publications/show/78.html
MAYDAY WALKOUT
Rumors have been spreading of a Mayday walkout by Hispanic workers to support the nationally touted “Day Without Immigrants” boycott. EDCO has been in touch with manufacturing companies throughout the region on the subject and has found that most will continue operations “business as usual.” Some companies are able to adjust work-week schedules around next Monday, however the issue has been of concern to several primary employers. According to the Oregon Employment Department, in 2004 an estimated 5.7% of the tri-county civilian labor force is Hispanic, and it Jefferson County that figure is 17.5%. For some companies such as Seaswirl in Madras, more than half of its workers are of Latino ethnicity.
JUNIPER RIDGE DEVELOPER DEAL IS GETTING ATTENTION
With the acute shortage of light industrial land in Bend pushing prices to 25-30% higher than any other community in Oregon and considerably higher than other larger communities in neighboring states, EDCO has been carefully monitoring and participating in, to the best of our ability, progress on the city-owned property called Juniper Ridge. Twenty years ago, this land was deeded to the City of Bend by Deschutes County for future industrial use. The project started in earnest back in 1999 with an industrial land inventory study and comprehensive search for properties most attractive and logical for development into employment lands. For many reasons, Juniper Ridge was selected as the area for Bend’s future light industrial, business and high tech development. Over the period of 2003-2004, a master plan for Phase I and Phase II of Juniper Ridge was developed by a group of local, regional and state experts in transportation, urban planning, economic development, as well as planners from the city, county and special districts. Last year, the City went through a RFP/RFQ process to select a master developer from the private sector to implement the vision of the master plan. Also in 2005, the City successfully established the Juniper Ridge area as an Urban Renewal District with the authority to raise $40 million to pay for on and off-site improvements including all utility extension and road improvements. Since the selection process, a small number of City staff have been working on an MOU with the developer, represented by Ray Kuratek, who has residential and office park development experience in California.
Details of the MOU negotiations have been few, and rumors are circulating that the City and master developer are planning a mix of residential and other non light industrial/employment uses for the first phase of the project. The Bend Chamber of Commerce and other local business leaders have openly expressed their opposition to this idea, and EDCO is also not in support of further conversion of light industrial land anywhere in the tri-county area to other uses - especially at Juniper Ridge which currently has all of Bend’s future supply. We expect the Juniper Ridge development plan to receive considerable discussion at upcoming Bend City Council meetings and to receive more press in the weeks ahead.
BEND 2030 VISION ROAD SHOW UNDERWAY
Bend residents, don’t miss your chance to provide input on the future of Bend. The Bend 2030 Draft Vision is available for review and is being taken “on the road” to individuals and organizations throughout the region. Presentations of the Draft Vision will be taking place around the city until May 10th. The Draft Vision was developed by the Bend 2030 citizen’s Vision Task Force after listening and learning from the citizens of the community of Bend. The Draft Vision has an overarching vision statement that is followed by six Focus Areas: A Well Planned City, A Vibrant Economy, A Strong Community, Safe, Healthy People, A Quality Environment and A Creative Learning Culture. Each Focus Area has its own vision statement and is followed by key vision elements. To provide feedback on the Draft Vision and check for presentation dates, visit www.bend2030.org.
MAY PUBTALK FEATURES ENTREPRENUER EXTRODINARE JUNKIE YOSHIDA
 Where: McMenamin's Old St. Francis School – Fr. Luke’s Room - Downtown Bend
When: Thursday, May 11th, 5:00 – 7:30 pm
Cost: $15 for EDCO; $25 for non-members
May’s PubTalk will feature keynote speaker Junki Yoshida, founder of the Yoshida Group (www.yoshidagroup.com/index) and Yoshida Gourmet Sauces. Junki is well known for his zany marketing tactics selling Yoshida’s Gourmet Sauces. Junki has established himself as the successful business owner of 18 companies in unique ventures range from restaurants, an art gallery, transportation and logistics, sports apparel and accessories, Prison Blues® garments and much more. For a full-bio or additional information on this event, click here.
CLICK HERE TO RSVP OR CALL EDCO AT 388-3236.
THANK YOU TO RENEWING EDCO MEMBERS!
A new section this month to the eCon Update, we will now be recognizing renewing members to EDCO, many of which have been longstanding supporters of the organization. Our success is very much dependent on your ongoing investment in our efforts to build a strong, vibrant and diversified regional economy!
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Platinum |
Silver |
Bronze |
Individual |
Financial |
Central Electric Cooperative
Dave Markham |
Palmer Homes
Gretchen Palmer
Becky Breeze & Company
Becky Breeze
Les Schwab
Jodie Hueske
David Evans & Associates
Jim Carnahan
High Desert Beverage Distribution
Jerry Druliner |
Phillips Architecture
Chad Phillips |
Windermere Real Estate
Patty Dempsey
Windermere Real Estate
Diana Barker |
West Coast Bank
Mark Beardsley |
WELCOME NEW EDCO MEMBERS!
BRONZE LEVEL MEMBERS
1031 Asset Exchange, LLC – Sanna Phinney
 1031 Asset Exchange, LLC provides expert personal guidance to help their clients realize the financial advantages of a tax-deferred exchange, which helps people grow their assets. A tax-deferred exchange is an investment strategy that allows you to protect, grow and diversity your assets tax free. As an asset management partner, they simplify tax-deferred transactions and make the process worry-free by personally facilitating the exchange. Benefits of a 1031 exchange include maximizing your investment assets by reinvesting your proceeds without paying taxes, by building your portfolio and protecting your equity, by relocating your investments and increasing your cash flow and by consolidating your holdings. To learn more, please visit their web site at www.1031ae.com or call them at 541-388-1031.
Oliver Commercial Group – Patrick Oliver
 One of Central Oregon’s longest-established commercial real estate brokerage firms, the history of Oliver Commercial Group dates back to 1976. Since that time, the company and its brokers have participated in over $300 million commercial sales, leasing, and business brokerage transactions. The company specializes in sales and leasing of all types of commercial, industrial, investment properties, and business opportunities. Oliver Commercial Group represents a diversified pool of owners, purchasers, and tenants from individuals to large national and institutional users and investors. For more information about the company, visit www.kerroliver.com, email Pat Oliver at pato@olivercg.com or call 389-2770.
INDIVIDUAL LEVEL MEMBERS
Compass Commercial – Darrell Deglow
Darrell Deglow has recently relocated to Bend after 30 years in the real estate appraisal field in Corvallis, Oregon. He joined the Compass Team in late 2005. He holds the Member of the Appraisal Institute designation and is a Certified General Licensed appraiser with the State of Oregon. His specialties included working for lending institutions, government agencies, corporations, attorneys and private individuals. Darrell has worked on projects that included development land, multi-family property, general and medical offices, condominium projects, restaurants, retail buildings, shopping centers, mini storage facilities and industrial property. He has extensive experience in commercial real estate consultation and other services such as feasibility studies, market analysis studies and commercial real estate arbitration. For more information you may contact Darrell at 541-383-2444 or visit Compass Commercial’s web site at www.compasscommercial.com.
Menefee Real Estate – David Schlatter
An Oregon native, David Schlatter brings over a decade of commercial real estate experience throughout the state including the Portland metro area. He has experience with major corporations and national distribution facilities along with a prior background in economic development facilitating business recruitment and land use planning. David has completed graduate-level studies in business administration as well as specialized training in commercial real estate through CCIM and SIOR. David is a member of the local Commercial Investment Division and the Central Oregon Association of Realtors. Menefee & Associates is a full-service real estate company offering commercial, ranch, and residential properties. To contact David, please call 541-317-1456 or send email to dms@menefeerealestate.com
Robin Gould
Robin Gould spent most of his working career with large, privately owned, family run, consumer goods companies. With the Mars Corporation he held various positions including Vice President of Finance, Chief Information Officer, and Strategic Planning Director. With E&J Gallo Wineries he was Chief Financial Officer. Since retiring in 1993 Robin has provided consulting services to various businesses and sits on the Board of Directors of several companies one of which is here in Bend. He is also an angel and early stage company investor.
MEMBER SPOTLIGHT
Cascade Heating
An EDCO member since 1988, Cascade Heating’s owners and associates have been committed to customer satisfaction, providing their clients with 35 years of experience and knowledge. Among other services, they offer residential, commercial and industrial Trane heating and air conditioning systems, continuous and custom gutters, metal roofing, custom sheet metal fabricating and 24-hour service and maintenance. Cascade Heating has served Central Oregon since 1970 and has continually expanded their product lines and services. Their goal is to furnish their clients with superior service, quality installations and dependable products which give them ultimate comfort. For more information, please visit their web site at www.cascadeheat.com or call them at 541-382-8483.
PENDING RECRUITMENT PROJECTS
Without breaching constraints of confidentiality, we want to make you aware of a few of our pending projects for the region. They include but are not limited to:
- A new distribution facility for foreign-made heavy equipment is considering locations in Central Oregon and Nevada. The company is an exclusive distributor in the U.S., Canada, and Mexico and the new facility would supply all of these markets. Initially a 20,000 sf parts warehouse would be constructed, preferably on a 10-12 acre site. EDCO is working with the company on locations in Redmond, Prineville and Madras.
- A metal fabrication company that EDCO has been working with for the past two years is showing renewed interest in expansion and possible relocation to the Redmond area. The project could bring 80-100 new jobs initially, with more possible in the future.
- A medical device company based in the Pacific Northwest is interested in relocating its headquarters, manufacturing and assembly operations to the Central Oregon area. A lead we generated at a recent trade show, the company is looking to make a site visit later this spring.
- EDCO is working with a Midwest-based modular home manufacturer that is interested in establishing a new plant in the Central Oregon area to serve Oregon and other West Coast states. The company is a relatively new entrant to the market and produces a unique modular home (typical homes are often stories) with a patented process and unique panel process. We are doing some research on building activity in the West, possible locations for the company and available incentives. The company would expect to employ 20-40 people within two years.
PENDING RETENTION/EXPANSION PROJECTS
- Advanced Power Technology (Nasdaq APTI), Central Oregon’s largest high-tech firm, recently held an event to celebrate two milestones for the company. The first is APT’s acquisition by Irvine, CA-based Microsemi (Nasdaq MSCC). The merger of the two companies will mean greater employment in Bend according to Microsemi President James Peterson, who noted that local employment for the company could double in five years depending on contracts and market conditions. The second milestone was new silicon carbide technology developed by defense industry giant, Northrop Grumman that has been licensed to APT for commercial production. The technology is years ahead of standard silicon-wafer processes and is predicted to be the next “big thing” in the industry for more than a decade into the future. Importantly, it also launches APT and the Central Oregon area into a closer relationship into opportunities the region can provide for other defense industry contracts.
- Quater Research & Development, a Bend company that produces analytical probing and instrumentation solutions asked EDCO for support in finding a company that could assemble and test one of their products. They had been using a company in Salem and were not happy with the quality of work. EDCO worked with RED (Redmond Economic Development) to find a good match in JODECO, a Redmond company that specializes in circuit design and assembly. The two companies met and have entered into a preliminary agreement. This is yet another example of a local connection being made in Central Oregon’s robust manufacturing community.
- Construction is well underway on TrueLine Steel’s new 7,000 SF industrial building on NE Hemlock Avenue in Redmond. The company manufactures steel building construction components for clients throughout the western U.S. Company growth combined with the benefits of Redmond’s Enterprise Zone program prompted the decision to shift from leasing to owning its own space. TruLine employs six people and anticipates occupying their new building later this spring.
- Several manufacturers in Redmond are in the process of negotiating with the City of Redmond on its Desert Rise Opportunity Site on the east side of town. This property has been designated only for large industrial users (10+ acres). That the City expects to have much of the 100+ acre property under contract by the end of 2006 is a sign of business expansion activity in the region and certainly the community of Redmond. Look for details of these projects in future eCon Update newsletters.
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