Issue 7, Volume IV

OREGON BUSINESS TAXES RANK FOURTH LOWEST IN THE NATION 
According to a study recently performed by Ernst & Young for the Council on State Taxation (COST) the tax burden on businesses in Oregon ranks among the lowest of all states in the nation – 45 rated higher.  The study compared state and local business taxes as a percentage of private sector economic activity for fiscal year 2004.  This percentage was 3.7% for Oregon.  Wyoming and Alaska topped the list with the highest percentages, 9.0% and 7.6% respectively.  The states with the lowest percentage were North Carolina (3.5%), Delaware (3.5%) and Virginia (3.6%).  COST is an association of over 500 multi-state corporations that works to influence state tax policies, and is an outgrowth of the Council of State Chambers of Commerce.  Since the study uses 2003-2004 corporate income tax data, Oregon’s numbers may look even more favorable in future years when considering recent changes in our state’s tax code that will be phased in over the next five years.  These include a new formula for calculating state corporate income taxes on multi-state corporation and a new 50 percent increase in research and development tax credits designed to spur new and emerging technologies.  To view or download the study, visit: 
http://www.ey.com/global/download.nsf/US/2004_COST_Study/$file/2004_COST.pdf 

CRITICAL WATER BILLS PASS, AWAIT GOVERNOR’S APPROVAL 
HB3038 (known as the “Responsible Community Planning Act”, the municipal water rights holding bill) passed through the Senate by a vote of 26-1 last week after passing in the House by a vote of 54-4. The bill, introduced by a bi-partisan group of House members, allows cities a 20 year horizon to take action on utilizing water rights for municipal/urban uses.  This legislation has significant implications to all cities in the tri-county region to plan and prepare for expected future growth.  Another related water rights bill, HB3494 overturns a recent Appeals Court decision in Coos Bay that determined that no Oregon municipality could hold an undeveloped water right for more than 5 years.  HB3494 has passed the House (39-17) and is now up for vote with the Senate.  Together, these two bills will help ensure a logical and well-planned future for providing needed municipal water infrastructure in the region for industrial, commercial and residential expansion. 

EDCO salutes our Central Oregon delegation of Rep. Chuck Burley, Rep. Gene Whisnant, and Sen. Ben Westund for their leadership along with the quarterbacking efforts of Doug Riggs and the Central Oregon Cities Organization (COCO) for progress on this legislation, which is also supported by water districts and other water resources organizations. 

BEND NAMED BEST ADVENTURE TOWN, TOP OF 50 BEST PLACES TO LIVE
Men’s Journal recently released their “50 Best Places To Live” and Bend was one of six communities featured “best of the best” as the top “adventure town”.  Their analysis included more than 50 variables including stress levels, numbers of bars per capita, national employment and population statistics, and “active living” variables such as amount nearby wilderness areas. Here’s a sample of what the Journal had to say about Bend: “…the job market, once confined to sawmills, is now a dynamic mix of high-tech, hospitality, and light manufacturing.  Need we say more?...” 

It appears that the news is out that Bend and the region’s mix of white and blue collar employment, high and low tech, manufacturing and service is truly unique in the nation – especially considering the area’s natural scenic beauty.  At the end of the day, this is the true measure by which EDCO looks at its success – the health, diversity and resiliency of the region’s economy and employment base.  To view the Men’s Journal article visit: http://www.mensjournal.com/feature/0504/bestPlaces.html.   For a complete listing of recent regional and national press on Central Oregon visit a brand new section of the EDCO website click here.

EDCO BOARD ELECTION TIME!
No, it’s not November, but it is election season at Economic Development for Central Oregon for members interested in serving on the EDCO Board of Directors.  A call for nominees was broadcast via email on June 13, ballots were sent electronically on June 28, and voting is open through 5:00pm, July 5th.  Seven candidates are vying for five open positions.  If you are an EDCO member and have not yet voted, please respond back to the email sent on Tuesday or contact Erin Chaiet at 388-3236 or erin@edforco.org.  In addition to this general election for the new Gold, Silver and Bronze level memberships the Banking/Financial Institutions are selecting their representative at this time as well and we are expecting a new representative for Deschutes County.  To learn more about who serves on the EDCO Board visit: /about_edco/board/.  We will announce the results of the current elections in the July eCon Update.

PUBTALK TAKES SUMMER BREAK, RESUMES SEPTEMBER 8th
To let entrepreneurs and investors take in the beautiful summer weather, no PubTalks are scheduled for July and August.  Starting September, we have another year of outstanding speakers, exciting early stage companies and valuable legal advice.  Mark your calendars for:    

Where:   McMenamin's Old St. Francis School - Downtown Bend
When:    Thursday, September 8th 5:30 – 7:30 pm
Cost:       $15 for EDCO and OEF members; $25 for non-members

WELCOME NEW EDCO MEMBERS!
SILVER MEMBERS

• Edge Wireless®, LLC  – Donnie Castleman
  A member of the AT&T Wireless Network was founded in the fall of 1999, with the intent to build a state-of-the-art wireless PCS system, Bend-headquartered Edge Wireless currently operates in Eastern Idaho, Southwest Wyoming, Southern Oregon and Northern California. With over 200 cell sites in these properties, Edge Wireless brings "big city technology" to smaller, rural markets.  Edge Wireless was recently named one of the top companies to work for in Oregon, according to Oregon Business Magazine's annual "100 Best Companies to Work for in Oregon" survey.  For more information on their services, (and employment opportunities!) visit their web site at www.edgewireless.com or call 1-866-350-EDGE.

BRONZE MEMBERS

• Shilo Inns – Donnis Shirley
  Shilo Inns Suites Hotel in Bend is nestled on the bank of the scenic Deschutes River and offers 151 deluxe guest rooms and suites.  With 3,475 sq. ft. of flexible meeting space, they have excellent facilities for business conferences, executive retreat or wedding receptions.  The Shilo Inn is conveniently located near the Bend River shopping mall and golf courses and offers a free shuttle to and from Mt. Bachelor and the Redmond Airport as well as free high speed internet access in every room, indoor and outdoor pools and spas, restaurant and fitness center on site. For more information, please visit their web site: http://www.shiloinns.com/Oregon/bend.html .
• Specht Development, Inc. – Todd Sheaffer
  Specht Development is a privately held company headquartered in Beaverton, Oregon that provides property, project and construction management services.  Specht Development has been involved in all aspects of real estate transactions: as advisor, buyer, seller, partner and developer. They believe this perspective enhances their ability to achieve market and client goals and to offer cost effective and creative solutions to real estate opportunities.  Specht is one of three developers that responded to the RFP for Juniper Ridge.  More information can be found at their web site: www.spechtprop.com
• Business Development Institute International – Vicki Griesinger
  Phoenix, Arizona based Business Development Institute International is a non-profit organization, dedicated to promoting business development excellence through the Business Development Capability Maturity Model (which provides a starting point for business professionals to craft an outline of what promotes optimum performance across the broad range of industry types, sizes and environments).  The BD-Institute promotes an innovative business development through appraisals and self-assessment, best practices, certifications and benchmarking.  For more information visit: www.bd-institute.org or contact the Ashland, Oregon office that serves the Central Oregon area at 541-552-9989.

Thank you to these new investors, renewing members and to all longstanding members for your support!  For more information on how to become an EDCO member, membership levels and benefits, please contact us at 388-3236 or visit /about_edco/whyjoin/
 
MEMBER SPOTLIGHT
An EDCO member since 1996, The Riverhouse opened its doors in 1974, with 93 rooms covering approximately 7 acres.  Today, it encompasses more than 300 acres and is home to 220 guestrooms, six meeting rooms, two restaurants, and golf course and residential neighborhood. 
 
The Riverhouse is the epitome of a family-run business.  In the early 70s, Clyde Purcell and his wife Mary Lou saw a need for an upscale hotel in Bend, so along with a developer they purchased land on the east side of the Deschutes River and began construction.  Clyde was the general contractor, Mary Lou Purcell designed the rooms and worked on the books and their son, Wayne worked on construction while still in high school.  Today Wayne is the General Manager and The Riverhouse is still an independent hotel, run entirely by the family. 

The Riverhouse has long been a major contributor to the community, donating cash, gift certificates and in-kind contributions to more than 350 charity and non-profit organizations in the past three years.  The future continues to be bright for The Riverhouse.  They will be adding over 28,000 square feet of meeting space with their new “Westside” Conference Center by summer 2006 and will also add another 100 guestrooms.  For more information visit: www.riverhouse.com.

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:

• EDCO will be attending the Air Venture Show in Oshkosh, WI July 25-27 along with other local manufacturers and suppliers to the industry including Lancair, Epic Air, and Baldhead Cabinets, a company that is in the process of relocating its manufacturing operations from Orange County, CA.
  An established Oregon-based insurance company is looking at Redmond, Prineville, and two communities in southern Oregon for a new claims processing center for their operations.   Company representatives visited the region last week for a second time are are now looking to narrow their focus on one or two communities.  The center would occupy 10,000-30,000 sq. ft. of class A office space and employ 75-120 people with  average starting wages in the $12-14 range. 
• An aerospace company that designs and manufactures pressurization systems for general aviation and jet aircraft is considering Bend as well as areas in Texas, Arizona and Colorado for relocation and consolidation of their operations.  The company is a supplier to all major general aviation aircraft producers in the US, including Lancair.  The president will be back for a second visit in early July.
• A southern California-based producer of safety-related products has purchased a site in Redmond and submitted plans for a 12,000 SF building to which they expect to relocate in late 2005 or early 2006.  
• EDCO has recently processed three new Enterprise Zone authorizations with the Prineville/Crook County Enterprise Zone for companies that are planning to move into the Central Oregon area.  With prices of industrial property ranging from $1.75-$2.50 per foot, business development activity is starting to heat up in the Prineville light industrial market.  
• A precision machining company looking relocate from the Bay Area of California to Redmond has indicated that the company is on schedule move by the end of 2005.  The company expects to employ up to 25 people, many operating Swiss machining equipment.  Wages for different positions range from $10/hr. to $25/hr.

PENDING RETENTION/EXPANSION PROJECTS

• Lancair is fueling significant growth in aircraft/aerospace employment in Deschutes county by adding nearly 100 employees in the past four months. 
• Epic Air, a new entrant to the high performance general aviation industry, occupied its new 90,000 sf production facility at the Bend Airport.  Since last year, the company has grown from 25 to 55 people and is looking to hire an additional 150 within the next six months.  Orders are strong for the company’s Epic LTs and research and development is already underway for the new Epic Jet.  For more information about the company or career opportunities visit http://www.epicaircraft.com/news.html. 
• Another local manufacturer supplying the aerospace industry with aircraft tugs is growing and looking for larger light industrial space either at the Bend Airport or at one of Bend’s light industrial/business parks.  EDCO is involved in helping find existing space or light industrial land for new construction.  If you know of light industrial land (1-1.5 acres) in the $6-$6.50 per sf range in Bend, please contact Roger Lee at roger@edforco.org. 
• EDCO successfully helped BMC Choppers with permitting logistics for construction of their new production and headquarter facility in North Brinson Business Park in Bend. The company is expanding both facilities and employment to supply a growing demand for their high-end motorcycles and choppers. 
• EDCO is working with a local supplier in the secondary wood products sector to Monaco Coach that is looking for a smaller facility and to diversify its customer base.

FEEDBACK
We would love to hear your thoughts and comments about this electronic newsletter and ways to improve it (i.e. is it getting too long?). Just fire back a response.  Once again, thank you for your support and interest – we are working hard to make the most of your contributions to help strengthen and diversify the regional economy!