February eCon Update

Strategic economic impact of Facebook announcement
Since Facebook announced its plans to build the company’s first owned and operated data center in Prineville, there's been a whirlwind of media coverage – most of which has been very positive. After twelve months of behind-the-scenes negotiations to make the project happen, EDCO is excited about the project for many reasons:

• It represents a huge capital investment into Crook County - likely the largest ever for a single project since the County’s establishment in 1882. In the short-term, this is an economy changer.
  
• Facebook is on the leading edge of global information technology while Crook County’s traded-sector employment is dominated by blue collar jobs. Now those employers continue to be leaders in their industry, primarily wood products, but Prineville has needed a boost toward diversification for many years.
  
• Let us not also underestimate the credibility value of a company with 350 million customers choosing a small Oregon town for its first major investment. The opportunities for business development efforts both now and in the future that this project has created are enormous.

EDCO's role as deal negotiator  
It is also important to acknowledge how a complicated project like this comes together. From day one EDCO played a lead role in convening a team of leaders and experts from the private and public sector to address state and local issues. From day one, Facebook hired the expert talent of site selector Fortis to work through the many technical mission-critical issues. Collectively, thousands of hours were consumed in due diligence, education, and negotiation on the path to last month’s announcement. Whenever economic development happens well, it is the result of a team effort. The Facebook announcement is a proclamation to the world that Prineville, Crook County and Central Oregon can compete for and win projects any community in the U.S. would like to have.

Addressing tax and job concerns
We've heard an undercurrent of concern about jobs, namely that there aren't very many of them, especially given the local tax exemptions. First, don’t overlook indirect jobs created by vendors and suppliers, which will likely surpass direct employment by Facebook at the center. The reality is that the jobs to investment ratio for this industry are completely outside the norms. Historically, a $188 million investment by a manufacturer would result in thousands of new jobs and the impacts to schools, roads, fire protection and other public services. Projects in the data center world do not create such impacts, and it is unreasonable to expect that they should or would foot such an inequitable bill. However, Facebook is paying for all its impact on private and public utilities needed for its operations and these investments will help improve the local capacity for additional job-creation projects. Facebook will also be injecting dollars annually in the community in the form of a community service fee and franchise fee payments for electricity use.

Redmond companies note improving business climate
In January, city officials and twelve primary employers, representing over 1300 employees, attended the Redmond Business Roundtable. Hosted by Redmond Economic Development, Inc. (REDI), the event provides primary employers a forum to discuss their business challenges, while learning about the City’s public infrastructure, transportation, and education projects. About one-third each of attendees noted their revenues were down from or the same as 2008, but four companies indicated increases of 20-40%. The companies also noted that affordable housing, transportation for goods and employees, childcare, and workforce education remain a challenge. These periodic roundtables are a valuable tool to identify business trends; REDI and EDCO will follow-up with attending companies to help on specific issues. 

Precise Flight lights the way
Precise Flight Inc., located in Bend, with the assistance of Purdue University, Indiana Sate and the USDA Wildlife Services office has evaluated the question of how to make aircraft more apparent to birds. Precise Flight is the only company ,in the world to attack the problem of avian air strikes from the aircraft perspective. The Landing Light System came out after 12 years of research in developing an optimal light for high efficiency and maximum visibility for pilots looking out of the aircraft and avian wildlife looking at the aircraft. This cutting edge research gained Gulfstream’s attention and late last year Precise Flight was chosen to supply the new Gulfstream G650 business jet with a Landing Light and Emergency Egress lighting system. The lights are a featured component of the first flight video found at www.gulfstream.com/gulfstreamg650.

5-plex cinema theater coming to Madras
Residents and tourist have longed for a theater in Jefferson County for a long time. Now it is becoming a reality with stadium seating, comfortable rocker chairs, the latest Dolby Surround Sound and even the ability to screen 3-D digital films - all at reasonable prices. Scott Goodrich, Jefferson Square Properties, LLC, has attracted Chuck Nakavasil, an experienced theater operator, to make this $3.5 million project with assistance from the local MRC. EDCO assisted the project with analytical data to support Goodrich's proposal. 

Oregon’s Legislature – special session starts this week
Despite the passage of 66 & 67 that made the biennial budget whole, the Oregon Legislature is convening to consider 133 bills during the month of February. This stands in contrast to the 2006 special session (the shortest in Oregon’s history) in which only five pieces of legislation were passed in six hours. EDCO is tracking several issues and bills including modification of the BETC tax credit program, SB1059 (provides additional authority to LCDC), HB3609 (modification of Oregon’s Enterprise Zone program) and a few others impacting business or land use laws.

Accepting pre-orders for 2010 Profiles
We're in the midst of developing our annual set of Profiles, which provide a statistical and business narrative overview of Central Oregon and its communities.  This year, EDCO will publish Central Oregon Area Profile (tri-county), Redmond Profile, Crook Co/Prineville Profile, Jefferson County/Madras Profile and, for the first time, a La Pine Profile.  Please contact Ruth Lindley or call 541-388-3236 to pre-order your copies - let us know how many of each publication you'd like.  Profiles will be available mid April. 

Oregon has more inbound than outbound residents, but only marginally
In January, the Oregonian reported on the national migration trends report from Atlas Van Lines, which tracks moves across the country. Now in its 18th year, the report shows that while Oregon became a less-popular destination in 2009, it is still net positive (meaning, more inbound moves than outbound moves). "Atlas' migration study takes the pulse of our nation – it reflects the economic climate and is a guide to the general migration patterns throughout the country," said Glen Dunkerson, chairman and CEO of Atlas World Group.

Nationally, household moves are down 16% from the prior yet. Dunkerson says "The results this year are surprising, because many states that have for years been outbound, inbound, or balanced have changed."  Click here to view the full Atlas Migration Patterns report. 

Feb 3 – OSU presents “Six Qualities of Healthy Families”
Part of the ongoing “It’s in the Bag” series, this lunchtime lecture will be given by Dennis Lynn, Ph.D. of OSU-Cascades’ human development and family sciences program. Learn more here.

Feb 5 - "Understanding a Healthy Banking Community in Central Oregon"
Opportunity Knocks and City Club co-host a distinguished panel of banking experts to share information about community and national banking in Central Oregon. More information is available here; register online.

Feb 5 - Introduction to the LEAN Office
Learn how to reduce office costs and improve efficiencies in this hour seminar, which uses work improvement methods derived from Six Sigma and the Toyota Production System.

Feb 10 - Opportunity Knocks presents "Pearls of Wisdom: Guiding principles from leading businesses"
Another gem in their Best Practices series, OK explores the intersection of vision and values. Hear CEOs Pete Newport (Breedlove Guitar Company), Amy Tykeson (BendBroadband), and Bill Willitts (FivePine Lodge).  Register here.

Feb 16 - 18 PREP Profile Systems 3-day PREP Personality Profile Administrator Certification 
PREP offers local 3-day comprehensive certification training, helping organizations understand, coach and manage current and prospective employees. Contact Kara Johnson or call 541-382-1401.

Feb 16 – Karnopp presents “When Cupid Strikes: Addressing Office Romance, Sexual Harassment and More”
7:30 – 8:30 am. RSVP mch@karnopp.com or 541-382-3011.

Apr 11-13 – Governor’s Tourism Conference comes to Bend 
Learn more about this three day conference for visitor industry executives, business and community leaders, sales directors and decision makers from the Northwest here.