Issue 6, Volume IV

BEND/DESCHUTES COUNTY BECOMES OREGON’S NEWEST MSA 
Although the last U.S. Census (2000) is already more than four years old, new Metropolitan Statistical Area (MSA) designations were just recently released.  Bend/Deschutes County is Oregon’s only new MSA, and immediately takes the place of fifth largest in the state – above Corvallis/Benton County and below Medford/Jackson County.  Given recent growth in the Central Oregon area, it is possible that Bend/Deschutes County MSA could elevate to Oregon’s fourth largest metro area by release of 2010 Census data. 

The MSA designation alone is significant. Not only does the Central Oregon area now appear on national market research and demographic databases, Bend/Deschutes Co. is Oregon’s fastest growing MSA and one of the most rapidly expanding in the entire country.  This means that the area is on more “radar screens” for development than ever before.  Much of new expected activity is anticipated in the commercial and retail sectors, but the designation has other implications as well.  For example, Deschutes County and the cities within its political borders are eligible to receive funding directly from the federal government for a number of programs.  MSAs also typically have a much greater depth and detail for statistical and demographic information than non-MSA areas.  All in all, we should expect to see a gradual, overall acceleration of interest and inquires into the Central Oregon area as result. 

BEND NAMED AMONG NATION’S TOP ENTREPRENEURIAL REGIONS
According to a national assessment of entrepreneurship and regional economic growth and development conducted by the Edward Lowe Foundation for the Small Business Administration (SBA), Bend ranks among the top regions in the US for innovation and entrepreneurship.  The study evaluated areas using: average number of new firm births per 1,000 labor force, strong local economies (1990-2001), higher levels of technology and R & D, tended to have a mix of manufacturing, technology-based and service employment, and a high percentage of rapidly growing firms.  Bend was the highest ranking area in Oregon (#7 for all regions nationwide).  The next highest Oregon region was Portland at #32 followed by Medford at #34 and Eugene at #53.  For more information about the study visit: http://www.sba.gov/advo/research/rs256tot.pdf

MONACO JOB FAIR A SUCCESS
As a response to the June 15 closure of Monaco Coach Corp’s Bend manufacturing operations, an on-site job fair was coordinated by the region’s workforce consortium (led by the Oregon Employment Department) at the company’s plant on May 20.  Of the 500 jobs that will be lost, approximately 100 Monaco workers are looking to relocate to the Coburg area, leaving about 400 people who intend on staying in the Central Oregon region and are looking for employment. More than 60 Central Oregon employers turned out for the fair, representing more than 450 current openings – many of which are in the manufacturing sector.  For example, Lancair is looking to add an additional 100 people to its current workforce of 520.  Contact Lumber (Clear Pine) in Prineville has 30-50 openings and Fuqua homes has grow its employment by more than 70 in recent months.  This remarkable response to what would historically be a catastrophic economic event is both a sign of a strong national economy and the resiliency of the Central Oregon economy.  For those who believe that the Central Oregon economy is on shaky ground, or dependent only on the construction or tourism industries, the experience with the Monaco closure is a clear illustration that the region economy is stronger than ever. 

INDUSTRIAL MARKET REVIEW
Information provided courtesy of Compass Commercial Real Estate Services.
The commercial and industrial real estate market in Central Oregon just keeps getting hotter.  Since 2000 industrial land prices in Bend have risen 42% at the low end of the range and as much as 88% at the high end, while prices in Redmond have increased between 75% and 125% over the same period.  Both markets have seen a majority of the increase occur over the last year as supply has dwindled.  Rents have also increased, but not at the same rate as land costs. Industrial rents in Bend today range from $0.50 to $0.60 per square foot per month (NNN) – an increase of 20% to 43% from five years ago.   In Redmond, where rents generally include taxes and insurance, rents are up 17% to 56% with a range of $0.35 to $0.70 per sf per month. 

Additional industrial land in Bend will not come to the market for two to four years when Juniper Ridge is developed.  The City of Bend has not finalized plans for this development.  In the meantime, look for higher land prices in both Bend and Redmond.  Rents should increase as well, as demand remains high. 

WATER RIGHTS LEGISLATION CRITCAL FOR CENTRAL OREGON CITIES
According to COCO (Central Oregon Cities Organization) economic development efforts in Central Oregon could come to a screeching halt if the legislature fails to pass HB3038 (known as the “Responsible Community Planning Act”), the municipal water rights holding bill. The bill, introduced by a bi-partisan group of House members, passed through the House of Representatives 54-4, and is currently pending in the state Senate.  The bill overturns an Appeals Court decision that determined that no municipality could hold an undeveloped water right for more than 5 years. Of course, this decision runs counter to Oregon's history of 20-year land use planning, and would eliminate the ability of cities to prepare for long term industrial, commercial and residential growth.

These next few days are critical to passage of HB3038.  Senator Ben Westlund is leading the charge to get the bill passed.  Calls to the Governor's office and to other key Senate offices (especially Sen. Charlie Ringo and Sen. Kate Brown) can make the difference.  For more information about the bill visit http://pub.das.state.or.us/LEG_BILLS/PDFs_2001/HB3038.pdf or contact Doug Riggs with COCO at doug@ngrc.com.

JUNE 9th PUB TALK WILL FEATURE MIKE MILLER, PRESIDENT OF KEY PAYROLL ONLINE
Co-founder and President of Key Payroll Online, Mike Miller oversees operations and strategic direction for the company which provides technology enabled outsourcing services for payroll, benefits, human resources and time and attendance data processing.  This past April, Payroll Online successfully negotiated sale of the company to KEYCORP, one of the nation’s largest bank-based financial services companies.  Mr. Miller will tell his story of taking the business from concept to successful enterprise to publicly-traded company via acquisition.    

Where:   McMenamin's Old St. Francis School - Downtown Bend
When:    Thursday, June 9th 5:30 – 7:30 pm
Cost:       $15 for EDCO and OEF members; $25 for non-members

RSVP NOW!

Pay at the door by cash, check (payable to EDCO) or credit card.

NEW SURVEY OF ANGEL INVESTORS CURRENTLY UNDERWAY
Central Oregon may be approaching critical mass sufficient to support a formal organization of angel investors focused on investment in promising new and growing companies.  In many communities, active angel investors organize into informal and formal networks to share deal flow; collaborate on deal screening, due diligence, portfolio management; and to share best practices and lessons learned.  Over 200 formal angel investor groups have formed in the U.S. and four groups are operating in Oregon:  Portland Angel Network, Women’s Investment Network, Portland Venture Group, and Willamette Investors Network.

EDCO has partnered with the Oregon Entrepreneurs Forum (OEF) and a working group of interested individuals is exploring the possibility of establishing a local angel network in Central Oregon to learn more about the needs and interests of angel investors in the area.  We are asking people who are interested in investment in startup businesses from Central Oregon and elsewhere in the Pacific Northwest to answer 10 questions in a blind survey; the results will help us determine how we can better support development of a robust business investment climate in Central Oregon. 

In order to learn more about the needs and interests of angel investors in the area, we ask that you take a few moments to respond to the following survey: http://www.surveywave.com/script/en-us/takesurvey.asp?guid=7246ED9D

This survey takes less than 5 minutes to complete, is absolutely confidential (no contact information is required in order to complete the survey), and will be made available in summarized form only (no individual data will be captured).  To date, more than 50 angel investors in the Central Oregon area have completed the survey. 

OTHER IMPORTANT CENTRAL OREGON EVENTS AND PROGRAMS
COVA Annual Luncheon – June 30th, 11:30am-1:00pm, Sunriver - Great Hall
If you have not had the chance to hear Roger Brooks of Destination Development Inc. speak, don’t miss the opportunity to hear this informative and entertaining industry leader at this year’s Central Oregon Visitor’s Association 2005 Annual Luncheon.  Brooks’ consulting firm has played a key role in tourism development across the U.S. and abroad including the early stages of local destination resorts Sunriver and Black Butte Ranch.  Tickets are available at COVA, $35 each, call 800-800-8334 for reservations.

Leadership Bend
Applications for the 2006 Leadership Bend class will be accepted until June 15, 2005. Selections will be made by July 15.  For more information about this excellent year-long program visit : http://www.bendchamber.org/chamber/leadership.asp. 

WELCOME NEW EDCO MEMBERS!

SILVER MEMBERS

• Structus (Drywall Systems International) – Bill Scannell
Established in 1995 in Hawaii, Structus Building Technologies moved their operations to Bend in June of 2000 because of the quality of life the region offers.  They soon discovered, however, a byproduct of the original reason for moving was the fact that they could draw from a great pool of talent in Bend. Structus develops and delivers innovative products to the building industry including Gypsum drywall accessories and patented corners for sheetrock contractors.  The company is currently broadening its product line and expanding its civic involvement.  For more information on Structus visit www.structus.com  or www.no-coat.com. 

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
Central Electric Cooperative, an EDCO member since 1996, provides electric services to primarily non-incorporated areas of Deschutes, Crook, Jefferson, Grant, Linn, and Wasco counties, in central and eastern Oregon.  CEC is a not-for-profit, customer-owned utility (one of 17 in Oregon) that was established in 1940.  Today, CEC maintains 3653 miles of overhead and underground lines which provide electricity to 27,315 accounts.   

Central Electric participates in a number of programs aimed at protecting the health and beauty of our region, including protecting rare birds, offering green power to their customers, and recycling and minimizing waste, all of which help reduce emissions, improve the land and promote environmental stewardship.  CEC also has a program in place called Project Helping Hand that helps those less fortunate offset their electric bills when facing financial difficulties.

For more information on Central Electric Cooperative, their services and initiatives, visit  www.centralelectriccoop.com or call 389-1980. 

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:

• An established Oregon-based insurance company is looking at Redmond, Prineville, and three communities in southern Oregon for a new claims processing center for their operations.   Company representatives visited the region last week and are looking to narrow their focus on one or two communities within the next 30-45 days.  The center would employ 50-100 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. 
• Following a four-year recruitment process, a metal fabrication company based in Orange County California has made the decision to relocate to Bend.  The company will occupy and remodel a large, existing manufacturing building and expects to invest approximately $2 million in new equipment and employ approximately 20 people initially, and possibly up to 40 within two years.
• A headquarter firm from the Willamette Valley continues to move forward with relocation to Redmond.  The company will employ 20 people initially and possibly up to 40 within two years. 
• 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.   
• 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.

• Construction on Epic Air’s new 100,000+ SF facility at the Bend Municipal Airport is slated for completion by early June. At the company’s request, EDCO arranged an April 13 media event featuring a sneak preview tour of the building with COO Dave Hice. The Bulletin and News Channel 21 both covered the event. The company has already begun hiring for its production staff, and was pleased to report to EDCO that the publicity resulted in a flood of resumes.
• A local manufacturer has contacted EDCO regarding applying to the Prineville Enterprise Zone. The company is planning to purchase $300,000-$400,000 of new equipment and is eligible for the Zone tax benefits. In addition, EDCO and the Business Resource Network met with the company regarding its current recruitment needs.
• EDCO is working with the City of Bend and a local motorcycle manufacturer on permitting to occupy a new headquarters and assembly facility in North Brinson Business Park.  The company is expanding both facilities and employment to supply a growing demand for their high-end motorcycles and choppers. 
• We are 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. 
• A local startup company in Jefferson County serving the home & garden and agriculture industry approached EDCO about their expansion plans.  We are working with the company on securing facilities, equipment and working capital to capitalize on a new product. 

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!