August 2010 eCon Update

Assessment shows Facebook’s impacts are far-reaching
As the eCon Update goes to press, you’ve undoubtedly heard Facebook will double its new data center in Prineville, adding 160,000 square feet to the structure going up, which is 147,000 square feet.   At first glance, one may not realize the enormous economic impact this building is generating. A recent report by the Oregon Employment department shows over 500 direct and indirect jobs will be created by Facebook – most of which are local to Central Oregon and Crook County. This includes construction workers, vendors, suppliers, and the expected 35 to 40 full-time staff members.

Those jobs have created business for companies like EoFF electrical supply that recently opened an office in Prineville and is enjoying record sales in 2010. Other Prineville companies that have received business from Facebook include: Powder Corp., Proline Fabrication, High Desert Enterprises, Parr Lumber, Miller Lumber, and Ace Hardware - just to name a few.

The financial impacts are even more widespread and they include the following:

1. $500,000 of permit & planning fees to Crook County; plugging the County’s budget shortfall and avoiding employee layoffs,
2. An estimated $500,000 per year in power franchise fees to the City of Prineville,
3. $110,000 annual community fee for 15-years, and
4. DPR/Fortis, the construction firms overseeing the project – and Facebook – have contributed over $40,000 worth of sponsorships and donations for community events.

Facebook is not going to save Central Oregon’s economy and bring unemployment back to pre-recession levels. This project is just one piece of the pie in creating job growth, new investment, and economic diversification. That’s EDCO’s role in Central Oregon, and we will continue to work on behalf of our local communities to strengthen our economy.

Central Oregon solar farms get LCDC’s attention
EDCO and the Jefferson County Planning Department are spearheading an effort to ask state leaders to allow solar farms to be built on some farm land. Current laws make it difficult for this type of development to locate on such land – even if it’s deemed unusable for farming purposes.

In July, the LCDC (Land Conservation and Development Commission) agreed to study its land use goals for power generation on non-irrigated agricultural land. The proposal has gained support from neighboring counties, developers, researchers, utilities, environmentalists, lawyers and legislators. LCDC will appoint a panel to study the issue, with a recommendation expected by early 2011. 

Area’s tourism big net can help land business fish 
A subgroup of EDCO’s board members are hard at work to strengthen natural ties between tourism and economic development.  Most of our region’s business recruits first experience the area as a tourist.  The EDCO Tourism Initiative seeks to accelerate the “aha” moment when a tourist considers the feasibility of moving their business to the region. To that end, we are beginning to conduct training sessions with front line staff to arm them with resource materials and to familiarize them with EDCO’s capabilities so they can speak comfortably on behalf of our organization.  This initiative follows work done earlier this year that solidifies EDCO's target profile as a recreationally-minded business owner/operator with 15-20 employees or less.  Contact Ruth Lindley, EDCO Marketing Manager, 541-388-3236 for more information. 

EDCO forms Stable of Experts to provide entrepreneurs “C” level help 
The EDCO team is excited to announce the launch of the Stable of Experts initiative, which provides advisors, guidance (board or advisory board guidance), and executive level “human capital” to our region’s early stage companies.  By connecting startups with Central Oregon’s considerable talent pool of experienced professionals, we can greatly increase the level of entrepreneurship regionally. 

Managed by Scott Larson, EDCO’s Venture Catalyst Manager, this initiative is purely voluntary.  Connections will be based on the evolving needs of the region’s early stage companies, as well as the areas of expertise represented in the Stable of Experts.  For more information contact Scott Larson or call 541-388-3236.

Areas of expertise represented in the Stable of Experts include the following:

• CEO/COO experience (scaling companies; technical, retail and manufacturing industries)
• CFO experience (financial modeling and operations; senior controllers; CPA expertise)
• CTO experience (IT/software, renewable energy, applied materials and medical industries)
• Software programming (.NET, PHP, Ruby, Linux, LAMP, UI/UX and/or SEO experience)
• Legal experience (corporate counsel; investment/M&A transactions; securities)
• Marketing/branding experience
• HR/recruiting experience
• Investor relations/fundraising (Series 7 license and/or broker-dealer certification)
• Angel investing (Accredited investors and/or facilitation with groups of investors)

Central Oregon startup companies prep for investment conferences
As fall approaches, the schedule of investment forums and venture conferences in the Pacific Northwest will once again be in full swing. EDCO’s Venture Catalyst Manager is working with several Central Oregon startup ventures, including Whippersnappers, Play Outdoors, Elements Naturals and TechSpace Bend to help companies prepare for upcoming events.

In addition to the Bend Venture Conference, Oregon Entrepreneurs Network, Venture Northwest, Northwest Entrepreneurs Network, and Northwest Energy Angels will host investor conferences this fall.  Areas of support from the Venture Catalyst Manager for Central Oregon startups include investor presentations and pitch preparations, review of business plans and valuation metrics.  See below for more information on the Bend Venture Conference.  

Headwaters Economics provides perspective, recommendations for regional economy
Ben Alexander, Associate Director and Co-Founder of Headwaters Economics, unveiled a study of Deschutes County and the Central Oregon region to help better identify why the area was a high flyer leading up to the “Great Recession” and why it fell so hard in this current economic downturn.  The study was funded internally by Headwaters and private charitable contributions. Rather than just provide a rear view mirror analysis, the independent research institute also looked at some comparable peer counties with similar demographics and growth patterns over the past two decades.  Two smaller “lifestyle” micropolitan areas, Coeur D’Alene (Kootenai County, ID) and St. George (Washington County, UT) and two larger metros Boise (Ada County, ID) and Boulder (Boulder County, CO) were examined.  

Recommendations for Central Oregon included a list of issues:  more affordable housing (relative to incomes), expanded business capital (loan and equity), better networks and collaboration, marketing strengths (including converting more visitors to residents and business relocations), continued improved access (air service, rail consolidation, etc.) and expanded higher education offerings and degrees.  

While work on many of these findings is already underway, EDCO is looking closely at all the recommendations to start new efforts to position the region for the greatest chance for ongoing diversification and future economic performance.  To read the entire study or executive summary, visit the home page of EDCO’s website under Recent Articles on the right side of the page.   

Economic development news from Central Oregon's communities

Sisters approves funding for part-time economic development position
In an effort to better support volunteer efforts and collaboration between the City, Sisters Chamber of Commerce and EDCO, the Sisters City Council approved $30,000 for the current fiscal year to procure a half-time independent contractor.  For the past 18 months, the effort to generate and qualify leads, provide local information about real estate options, workforce capabilities and to conduct company site visits has been done almost entirely with volunteers.  Councilors believe that for the local effort to be sustained, it is important to provide some compensation to a locally-based leader in Sisters that would support SBART’s (Sisters Business Attraction & Retention Team) activities.  EDCO, a longtime partner with the City for economic development, was asked by the City of Sisters to oversee procurement of a qualified person or professional services firm.  Those interested can learn more about the opportunity by visiting the Recent Articles section of EDCO’s home page.  Closing date for proposals is 5:00 pm, August 6, 2010. 

InEnTec, an EDCO recruit, partners with Gilliam County landfill and Waste Management, Inc.  
Bend-headquartered InEnTec, a leading technology company in waste to energy conversion, is embarking on its first commercial application in Oregon at the state’s largest landfill in Arlington.  The company plans to build a plasma energy conversion plant at the Columbia Ridge Landfill in Gilliam County.  The facility will convert waste into synfuels and other commercial by-products that could fuel the plant, cars, homes, and businesses. The plant is expected to be operational by the end of 2010 and will employ 16 people.  

EDCO helps Jefferson County business choose local
Mid-Columbia Lumber Products (MCLP) is expanding, and staying in Jefferson County thanks to EDCO’s help. The company had been looking for sites all over the Northwest, but decided on the former Sea Swirl facility in Culver. Access to a rail spur was vitally important to the company, so EDCO and Business Oregon worked with the Oregon Department of Transportation to uncover the ODOT Rail Spur Fund. The grant money helped pay for most of the switch and rail spur, which was a deciding factor for the company to stay in Jefferson County. MCLP plans to move to Culver in 2011, retain 25 jobs, and possibly add more in the future.

Prineville gets new Airport Manager 
Growth and expansion are two words that describe activity at the Prineville airport in recent years. And to keep that momentum going, a new airport manager is now in place. Jeff Salisbury worked for Flightcraft at Portland International Airport and brings 16 years of aviation experience. He’ll take over day-to-day operations and oversee the nearly completed expansion of the runway, which can now accommodate larger aircraft – including commercial jets. Salisbury says one of his main goals is to promote the advantages of the airport to bring in more business and increase revenue.

High Desert Organix finally receives conditional use permit   
After months of appeals and delays, High Desert Organix moves forward to develop its compost facility east of Madras.  The agriculture community is excited to finally have a place to deposit the agriculture screenings from the Jefferson County seed crops.  High Desert Organix negotiated minor changes to the conditions with neighbors, which were approved by the Jefferson County Board of Commissioners. 

Prineville company receives forest stewardship certification
Dayspring Hardwood & Moulding, Inc., located in Prineville, announced that it has recently received a Forest Stewardship Council (FSC) Chain of Custody (COC) demonstrating the company’s commitment to taking seriously environmental concerns of its customers, staff, and community.  Dayspring underwent a rigorous evaluation by Scientific Certification Systems to become certified, assuring that the labeled products come from a well managed forest.  “We are very excited about our FSC certification,” said Chasity Begley, Office Manager. “Over the past two years, the request for FSC materials from customers has increased tremendously.”  Dayspring is continuously looking for ways to preserve natural resources, forestlands, and the environment.  

Mid Oregon Credit Union launches tri-county school supply drive 
You can help out children who cannot afford what’s required to start school with Mid Oregon’s Supplies 4 Schools drive, assuring each child has a sense of readiness and belonging on their first day of school.  The drive ends August 30th.  See the Supplies 4 Schools PDF for details on needed supplies and Mid Oregon Credit Union drop-off locations.

HiDEC news

St. Charles-Redmond gets kaizened...and enjoys it 
It did not take long for HiDEC's newest member, St. Charles, to ask for input from other member companies.  On July 21, five company representatives from PCC Schlosser, Vocalbooth.com, American Licorice, CORIL and Structus Building Technologies joined St. Charles staff in a one day event to improve efficiencies.  “This collaboration really opened my eyes to how much Lean talent resides within the HiDEC group,” said Cory Hammond, Clinical Lean Practioner at St. Charles. “The group’s contributions during the event were great.   I look forward to other opportunities to partner with HiDEC in the future and hope to find a spot on the next HiDEC meeting agenda to share our successes with the Redmond Inventory Control Kaizen.”

Upcoming HiDEC Events

Lean 101
Friday, August 13, 8:00 am - 4:00 pm   
COCC Redmond Campus Building 3

Executive Forum - Problem Solving 
Tuesday, September 13, 4:00 - 6:00 pm 
Deschutes Brewery Mountain Room

Problem Solving Two-Day Workshop
October 18 and 19, 8:00 am  - 4:00 pm 
Location TBD
Day 1 - Learn about different problem solving techniques and what is used at Toyota.
Day 2 - The group will focus on the two winning challenges to come up with solutions. (HiDEC is looking for two good HiDEC member company challenges to take on for the second day of the workshop.)  Non-HiDEC members are welcome to participate at $100 per person.  Contact Eric Strobel with questions.   

Now for the numbers....

Forbes uses IRS data to create interactive map showing national migration patterns
Cited in the Headwaters Economics study noted in the article above, Forbes.com has made available an interactive map of the U.S. where individual migrations are tracked using 2008 data collected by the IRS.  All 3,140 counties in the country are delineated, but data only exists for those with more than a 10 inter-county moves.  According to the map, all three Central Oregon counties saw net in-migration, primarily from other parts of the Western U.S. Top areas for out-migration included northern Idaho, western Washington & Oregon, western Montana, and Kona, Hawaii. 

Oct 14 & 15 - Bend Venture Conference 2010 takes form   
Mark your calendars for October 14th and 15th for the Bend Venture Conference, our region’s premier event that attracts the Northwest’s top investors and entrepreneurs.  EDCO is now managing the event and we’re pleased to launch a new look for BVC’s website.  Keynote speaker is Jonathan Heiliger, VP for Facebook who oversees the company’s global infrastructure and has significant venture capital experience himself with such companies as YouTube. Community members can also take advantage of informative pre-conference seminars on Thursday leading into the full day business plan competition. 
 

October – EDCO’s 2010 Industry Month – is shaping up.  Mark your calendar now for these events: 

Managing to Win!
Fri, Oct 8, 7:30 - 10:30 am
Presented by COCC; COCC Campus Center

Bend Venture Conference (BVC) Pre-Conference Seminars
Thurs, Oct 14
Touchmark at Mt. Bachelor

Bend Venture Conference Networking Reception
Thurs, Oct 14, 5:30 pm
Broken Top Club

Bend Venture Conference
Fri, Oct 15, 8:00 am - 5:00 pm
Tower Theatre with concluding reception at The Oxford Hotel

Mike Hoseus - Toyota Lean Principles
Mon, Oct 18
Presented by HiDEC; Seventh Mountain Resort

Export Strategies: David Josephson of XM Bank (Luncheon Speaker)
Presented by EDCO and U.S. Dept. of Commerce; Location TBD

EDCO Annual Awards of Excellence
Thurs, Oct 28, evening; Seventh Mountain Resort

Cyber Security: How to Protect Your Business & Identity
Time TBD
Presented by EDCO and Ater Wynne; Location TBD

New president and 2010-11 officers approved at EDCO Annual Meeting 
Katie Tank, Partner with Schwabe, Williamson & Wyatt, was inducted on July 9th as the new President of EDCO for the current fiscal year.  Ms. Tank has been on the Board of Directors since 2005 and has served on the Executive Committee for the past four years.  Over that period, she and her firm have contributed considerable in-kind legal services to EDCO, in the form of drafting agreements, reviewing funding contracts, and assisting with hiring processes.  In addition to her duties as President for EDCO this year, she will also chair the Bend Chamber of Commerce Board of Directors starting in January 2011.  Joining Ms. Tank on the slate of officers (and the EDCO Executive Committee) are: 

Past President:	Greg Lambert, President, Mid Oregon Personnel Services
President-Elect:	Bill Anderson, President & CEO, Mid Oregon Federal Credit Union
Vice President:	Amy Tykeson, Owner & CEO, BendBroadband
Secretary:	Angela Jacobson, Business Manager, Pacific Power
Treasurer:	Wes Price, Partner, Harrigan Price Fronk & Co. CPAs
Member at Large:	Melanie Widmer, President, Madras Sanitary Service
Member at Large:	Doug Ertner, Senior Account Executive, Central Electric Cooperative
Member at Large:	Lorie Harris Hancock, Partner, Schwabe Williamson & Wyatt

In addition to helping underwrite operations, The EDCO Board of Directors and Executive Committee set the policy and direction for the organization and its satellite offices. 

Newest EDCO Members

Skanska - Silver Level 
Skanska USA Building is a leading commercial contractor in Central Oregon providing services for construction, pre-construction consulting, general contracting and design-build delivery to a broad range of industries. Over the past seven years, their Central Oregon operation has served as general contractor for multiple local clients such as St. Charles Medical Center(s), Bend Parks & Recreation District, and the Bend-La Pine and Redmond School Districts.  Currently, Skanska’s Central Oregon team is building the new high school for the Redmond School District, slated to be completed in time for the 2012 school year. The $62 million project currently employs 14 full time local people and utilizes more than 50 local crafts persons and 17 subcontractors. For information about Skanska, contact Central Oregon Operations Manager John Williamson at 541-504-9525.

Classic Coverings & Design - Bronze Level 
Classic Coverings and Design is Central Oregon’s only Hunter Douglas Gallery, offering the full line of Hunter Douglas window fashions and the largest showroom in the area.  They specialize in interior and exterior sun control products such as motorized exterior solar screens, retractable awnings, and automated shading systems.  Visit their showroom at 1465 SW Knoll Ave. #103 in Bend (off Century Drive) or call for a complimentary in-home consultation, 541-388-4418.  

Renewing EDCO Members

Individual Level:  501 Drive (2007), Carbon Neutral Plane (2009), Cascadian Group (2006), Coldwell Banker Morris Real Estate – Al Eastwood (2005), Robin Gould (2006), John L. Scott – Mary Stratton (2004), Sportsvision (2008), Virtuosity (2009)

Bronze Level: Benchmark Real Estate (2008), Bend-La Pine Schools (2005), Eberhard’s Dairy Products (1987), First American Title Insurance Company (2005), Hunter Properties (2008), Kinetic Branding (2008), Miller Lumber (1986), Mountain Oasis Properties (2008), Pine Tavern (1986), Redmond Spokesman (1987), Robberson Ford (1986), T-Mobile (2004), The Daniels Group (2008), VocalBooth.com (2008),

Silver Level: American Licorice (2008), Central Oregon Workforce Coordinating Council (2009), Compass Commercial Real Estate (1996), Deschutes Brewery (2000), Express Employment Professionals (1987), Karnopp Petersen, LLP (1987), Kirby Nagelhout Construction (1999), Lifewise Health Plans (2006), PREP Profile Systems (2009), Pronghorn (2006), Schwabe, Williamson & Wyatt, P.C. (2003), Structus Building Technologies (2005)

Financial Institution: Columbia State Bank (2001), Oregonians Federal Credit Union (2009), Selco Community Credit Union (2001), South Valley Bank (2006),

Gold Level: Harrigan Price Fronk & Co., LLP (1998), Hooker Creek (2004), Mt. Bachelor, Inc. (2009), The Bulletin (1987),

Feedback
We value your comments, criticisms, and suggestions.  Send Ruth Lindley a note or call us at 541-388-3236 with your ideas about the eCon Update.