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eCon Update - July 2006

Issue 7, Volume V

NATIONAL SITE SELECTOR VISITS BEND AS PART OF OEDA TRAINING SERIES
Mr. John Rhodes, Senior Principal with corporate site selector Moran, Stahl & Boyer in southern Florida visited Bend earlier this month to speak to economic development professionals gathered for the Oregon Economic Development Association’s (OEDA) quarterly training series.  Rhodes’ focus was on workforce development and included several illuminating points about how the site selection process works from his perspective and how many areas get eliminated, based on a client’s parameters, before most ever know they were under consideration.  He stressed that availability of detailed, readily-accessible information that can be accessed online is critical to helping avoid being knocked out of competition in the early stages of a search.  Rhodes also provided some insight as to the changes in demographics – specifically noting that he believes that a larger portion of retiring baby boomers will continue to be a part of the workforce and will fill some of the expected shortages in the workforce.   He also said his 25+ years in the field nationwide had revealed that graduating high school and college students today are generally “clueless” about career opportunities.  As a result, many end up spending the following 3-7 years learning how to get, keep and find a fit for employment.  Rhodes challenged the group in saying that the “state or region that figures this out will be big winners.”   EDCO is looking to convene business and education leaders later this year to discuss this very issue to find out how we can better connect students with the work skills they need and range of career opportunities before they leave the education system.  For the PowerPoint used in this presentation, visit http://www.oeda.biz/resources_files/MSB-OregonEDA-7-06.pdf 

WORKFORCE HOUSING EMERGES AS KEY ISSUE FOR ECONOMIC DEVELOPMENT
A newly completed survey and report commissioned by Housing Works (formerly Central Oregon Regional Housing Authority) and sponsored by Bank of the Cascades, US Bank, Umpqua Bank, South Valley Bank & Trust, the City of Prineville, the City of Madras, and the Central Oregon Partnership revealed that the region is headed for a significant shortage of housing that is unaffordable for a large portion of area residents.  The report said that an estimated 5,200 jobs are currently going unfilled, due in part to the housing affordability crunch.  In the next three to five years the Central Oregon region will create a projected 10,400 net new jobs.  Patty Moss, CEO of the Bank of the Cascades spoke at the press conference on July 26th that unveiled the report, saying that her growing financial institution was finding itself “challenged by the housing question” in hiring with talent at all levels within the bank and noted that the bank perpetually has approximately 10% of its positions unfilled.  In the past five years alone, the average cost of a home in Bend has risen by more than 68%, in Sisters by 80%, in Redmond by 66%, 45% in Prineville and 41% in Madras.  The issue is complex and will likely require a multi-faceted approach that includes coordinated, forward-looking, regional solutions.  EDCO and Housing Works are looking at co-hosting a Housing Summit this fall to bring together key city, county, business, development and construction leaders to develop a strategy.  For more information about the report, or to down load the document visit:  http://www.corha.org/press/p_pressreleases.php?id=58

HORIZON FLIGHTS TO LA DEBUT TOMORROW
August 1st signals the first day for non-stop service to Los Angeles on Horizon Air, as well as daily round trip flight availability to Eugene, Oregon.  The Redmond Airport and Horizon will be hosting an inaugural flight event at 8:30am at the Roberts Field Terminal airport to celebrate the occasion.  Reports suggest that ticket sales for the first month of flights have been brisk.  Redmond Airport Manager Carrie Novick and a regional team of leaders known as COAST (Central Oregon Air Service Task Force) and air service consultant Mead & Hunt worked for more than three years to secure the flights to LAX.  Expansion of the parking lot to accommodate the added volume of travelers is well underway and will be completed later this year, followed early next year by ground breaking for a $30 million project that will more than triple the size of the current terminal. 

DELTA TRAVEL BANK NEARS FINAL QUARTER
The Airline Travel Bank (ATB), which played a key role in attracting new air service from Delta Airlines and subsequent service from other carriers, is nearing the end of its extension period.  The program officially wrapped up February 28th of this year; however EDCO was able to get the agreement to use ATB cards through the end of the calendar year (December 31st, 2006).  As of this month, roughly $44,000 remains in the travel bank from the original $626,000 committed by 120 local businesses.  Of those companies, 56 have either $0-$100 balances, 83 have less than a $300 balance and 37 companies have more than $300 in their ATB accounts.  60% of the total final balance is held by eleven companies.  If your company participated in the effort and you have not yet drawn down your full contribution, please contact the EDCO office at 388-3236 or info@edcoinfo.com to learn more about your options and the deadline. 
 

BEND GETS MORE NATIONAL PRESS FROM MAGAZINES MONEY & OUTSIDE
National recognition of the Central Oregon area continues with the August “2006 Dream Towns” edition of Outside magazine – a compilation of 20 communities “where locals work, train and play hard.”  Bend was recognized for its outstanding trail running opportunities.   Money magazine also listed Bend among its 2006 Edition of 100 Best Places to Live, based on ease of living, health, education, crime, park space and arts and leisure.  At 86th, according to Money, it ranked below places like Fort Collins, CO (#1), Boise, ID (#8), Gilbert, AZ (#16), Bellingham, WA (#21) and Oregon cities Hillsboro (#63), and Beaverton (#79).  For Money’s complete rankings visit: http://money.cnn.com/magazines/moneymag/bplive/2006/ .

ECONOMIC INDICATOR:  COST OF ONE-WAY RENTAL/MOVING TRUCK
An interesting economic indicator factoid was recently mentioned by US Bank economist John Mitchell in a recent newsletter – the comparative cost of renting a moving truck.  In the free market world of the rental truck business, those areas with more one-way traffic than another tend to have lower one-way rental cost elsewhere.  Dr. Mitchell compared one-way rates for a 24ft truck from Portland to Los Angeles, which ran $1,299.  The reverse move was $289.  When EDCO did the comparison, a one-way from LA to Bend was $1,769 and the reverse move was $199.  Just for fun we also did the same exercise for a move from San Francisco to Bend, which was $959, and the reverse move was again $199.  In other words, the market is saying that there is a glut of trucks coming to our area versus those going out, so the rental is practically free for a move to the big metro areas of California!

MARK YOUR CALENDAR FOR THE 2006 BVC
The 2006 Bend Venture Conference (www.bendvc.com) will take place on Friday, October 20th at the Tower Theatre from 8:30 am to 4:30 pm.  The BVC will bring experienced seed and early stage venture investors from across the Northwest together with proven entrepreneurs to review five highly qualified investment opportunities.  Building on the remarkable success of the inaugural 2004 event, the Bend Venture Conference is presented in association with Economic Development for Central Oregon and the Oregon Entrepreneurs Forum. 

Contact Heidi Berkman, BVC Conference Director at heidiaberkman@msn.com or call 541-480-8700 for more information.

BEND 2030 ACTION PLANNING FORUM REVIEW
The Bend 2030 Project Management Team would like to invite you to join in the next step of creating Bend’s future through participation in Phase II activities.  During Phase II, the community’s vision will be translated into specific action items and a 5-year Action Plan.
 
When: Friday, August 4th. The Forum Review will begin promptly at 12:30 p.m. and conclude at 2 p.m.  Feel free to bring a brown-bag lunch.  Beverages will be served. 
Where:  Brooks Room at the Bend Library, 601 NW Wall Street
RSVP: Contact Pat Cohen at info@bend2030.org by Wednesday, August 2nd to reserve your place. Please provide your name, contact information, and your organizational role.
 
Bend 2030 is seeking CEOs and board members of organizations that have a role to play in making the Bend 2030 vision a reality through their participation in the Bend 2030 Action Teams. The Action Teams will develop action plans for each Focus Area of the Bend 2030 vision.  To fill out an application go to http://www.bend2030.org/Action_Planning_Forum/  

• Worksource Oregon Employment Department 
• Central Oregon Intergovernmental Council (COIC)
• Economic Development for Central Oregon (EDCO)
• Central Oregon Community College (COCC)
• Vocational Rehabilitation Services (VRS)

The service is provided free of charge.  Contact Eric Strobel at 388-3236 or eric@edcoinfo.com for more information.      

NEW MEMBER

INDIVIDUAL LEVEL MEMBERS

EnergizeGrowth LLC - Lisa Nirell
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MEMBER SPOTLIGHT

LifeWise of Oregon

• A large industrial project is looking at locations in the Central Oregon region that offer good access to the California market as well as direct rail service and close proximity to the highway system.  The project will also have significant utility usage.  EDCO is working with leaders in Prineville and La Pine on preparing a proposal for the project which would result in a minimum of $60 million and 60 permanent, well-paying jobs.   
• EDCO responded to a new lead from the Oregon Economic & Community Development Department for a kit aircraft manufacturer that is looking for a new home in the Pacific Northwest. A proposal was prepared this month for sites at general aviation airports in Bend, Prineville and Madras for this project which would initially occupy a 10,000 sf building on an airport and bring 30 new assembly and manufacturing jobs.   
• ODS Companies, which announced plans earlier this year to establish a new claims processing center and dental hygiene school in downtown Redmond, has hit a snag in planning for adequate parking.  The project would employ more than 120 people at family-wage levels, so Redmond Economic Development, the City of Redmond and property owners in and around City Hall are working toward a solution.
• Greatoutdoors.com has started construction of a new, 35,000 sf administrative center and distribution warehouse in Redmond.  The company is currently in the Kirkland, WA area, and will be shifting a significant portion of its operations to Redmond over the coming year.  EDCO worked with the company over the past 18 months to deliver a comprehensive incentive package and address cost comparisons with other locations in the West.  The project will result in approximately $2.5 million in new capital investment and an anticipated 40-50 family-wage jobs.  

• EDCO is working with a local specialty products manufacturer on finding a new location in Bend.  The company has outgrown its current space and is looking to construct a 15,000 – 18,000 sf combined fabrication shop, warehouse & distribution and corporate offices.   The company is anticipating considerable sales growth and expects to expand its employment over the next two years.  EDCO is working on an incentive package, site location assistance and fast track permitting. 
• Recently, EDCO lent its support to Dayspring Hardwood and Moulding, Inc. to successfully gain two more years on the company’s enterprise zone agreement with Crook County.  Dayspring was the first company to apply for the enterprise zone incentive in Crook County in 2002 and has effectively fulfilled its employment requirements allowing for the extension.  Dayspring produces high-quality hardwood products that are shipped throughout the western United States.
• Two Central Oregon manufacturers are looking to locate adjacently in new, expanded facilities within a new light industrial development.  The projects will allow for sustained growth of each company well into the future and enable them to vacate leased facilities in exchange for those owned by the principals.  Look for more details about these exciting projects in future newsletters.