February 2011 eCon Update

Business News in Central Oregon

Venture Catalyst, Chapter Two
Last week EDCO publicly announced that it has engaged the McDonald Group to oversee a professional search process to fill the Venture Catalyst program for the organization. Scott Larson, who has held the position since January of 2010, will be officially stepping down when a new leader is found. In addition to remaining actively involved as a volunteer with EDCO and entrepreneurial efforts in Central Oregon, he is also likely to be part of the interview and hiring panel for his replacement. The combination of launching his own new consumer products venture and challenges brought by living part time in Bend and Seattle precipitated the change. For more details, read the complete press release issued on January 24th.

EDCO and COVA working with United Airlines to expand air service options for our region
In an effort to continue to expand flight options in Central Oregon, EDCO is joining the Redmond Airport, Central Oregon Visitor’s Association (COVA) and Mead & Hunt to pitch United Airlines planners in Chicago later this month. The focus of the discussions will be to advocate for a second daily, year-round flight to Denver and improved timing for San Francisco flights. Recognizing how vital air service is to business in Central Oregon, EDCO, COVA, and Mead & Hunt have collaborated for nearly a decade to persuade airlines to upgrade equipment, add flights and locations into and out of Redmond. As we reported in the December eCon Update, it’s not an easy task in today’s environment to expand service in any small or mid-sized airports, as airlines focus on larger metros which offer higher operating margins.

Impressive investment activity in 2010; funding continues to flow to Central Oregon companies in 2011
Central Oregon continues to record an impressive amount of investment activity for the region’s fastest growing companies. 2010 saw $40+ million invested into Central Oregon’s IT/software, clean tech, medical technologies and consumer goods industries. Examples range from $25,000 of angel investment, to $15 million in venture capital funding, to $20+ million in state and federal grants.

On the receiving end of angel investment were several Central Oregon companies, including Proxense, Whippersnappers, and StreamIt. Additionally, Clear Catheter Systems received $1.2 million in funding, G5 Search Marketing received $15 in venture capital, and Davenport Newberry received over $20 million in U.S. Department of Energy (DOE) grants.

Leading off 2011 is Redmond based Altrec, which just announced $6 million in funding in January. Altrec’s announcement provides yet another example of a successful growing company diversifying the region’s economy. For more information about programs, events and ways to support early stage companies in Central Oregon, please contact EDCO at (541) 388-3236.

Governor Kitzhaber, EDCO participate in statewide kick-off of national career readiness certificate
Governor Kitzhaber, state leaders, EDCO’s Redmond manager Jon Stark, and business representatives gathered in Portland January 25th to roll out the national career readiness certificate (NCRC), which is now available to all Oregon employers and job applicants. The certificate provides objective documentation of foundational workplace skills, measuring three key skills—applied mathematics, reading for information, and locating information. In an interview with radio station KEXI, Governor Kitzhaber endorsed the program, citing the certificate’s ability to identify unemployed individuals who are work-ready. “We expect to put 1,325 Oregonians back to work through this program," he said.

Redmond was selected as one of thirteen of the state’s first test sites for the certificate. Jon Stark worked with the Region 10 steering committee to help build employer acceptance of the program, which now stands at over two dozen Central Oregon companies and counting. At the Portland kick-off, he remarked “This program represents a significant tool in our economic development efforts to help showcase our region’s workforce talent.” 

Highlights from the NCRC Launch:
Governor Kitzhaber: Introducing Oregon's NCRC
Governor Kitzhaber: Local Partnership made the NCRC possible
Governor Kitzhaber: Sharing Rich Bonner's story
Eileen Drake: Using the NCRC at PCC Structurals

EDCO’s unmanned aerial systems (UAS) initiative gathers public commentary
Since the rollout of EDCO’s UAS proposal in late 2010, the EDCO aviation committee has been busy garnering local public support for the initiative and meeting with general aviation pilots to hear their concerns regarding how air space restrictions might impact them. The initial proposal is being modified to respond to specific issues from the general aviation community, who are looking for the test area to avoid Highway 20 and other established flight routes.

EDCO continues to receive letters of support from cities, counties, and private businesses in the UAS industry. Central to the initiative is the goal to attract UAS companies to Central Oregon, creating high paying technical and professional jobs. Recently, a small commercial UAV manufacturer in California contacted EDCO expressing interest in relocating to Central Oregon. The company wants to escape the high cost of business in California but, more importantly, likes the idea of a test site located close to a high amenity city providing a talented aviation workforce. This type of inquiry is what the EDCO aviation committee had in mind when developing the proposal.

EDCO’s next steps in this lengthy development project are to:

• Refine the proposal based on input from pilots and aviation groups
• Involve the educational community to develop degree programs that support the initiative
• Work with the Oregon delegation to start discussions with the FAA.

>>Following the series of public meetings throughout Central Oregon, we've re-posted documents related to the unmanned aerial systems initiative.  Read the revised Strategic Proposal and updated FAQ here.    

Commercial airline traffic at Redmond Airport is back on a growth path
According to a recent report released by airport consultant group Mead & Hunt, net passenger traffic at Redmond is up slightly over the same period (Sept.) through 2009 despite losing some seats in the market. In the past, Redmond had led all airports in passenger growth for commercial airports in a seven state area that includes Colorado, Idaho, Montana, Oregon, Utah and Wyoming. Today, of the 70 commercial airports in the region, Redmond ranks 17th in passenger traffic and sits roughly in the middle of the pack for growth. Twenty nine airports saw declines in passenger traffic, the largest occurring in St. George, UT (-30%); Lewistown, MT. Among the top 20 busiest airports in the region, Bellingham, WA and Pasco, WA (Tri-Cities) saw the biggest gains.

Biomass project in La Pine in jeopardy with state land use appeal; EDCO to intervene 
Portland area attorney John Williams, backed by Plumbers & Steamfitters Local 290, has filed a state Land Use Board of Appeals (LUBA) appeal regarding city and county approval of a proposed biomass energy production plant in La Pine. Because of the timing of expiration on federal and state tax credits allocated for the plant, getting through LUBA’s lengthy decision process could compromise this needed job-creation project. EDCO is asking for Governor Kitzhaber, who has been outspoken in support of biomass energy as a strategy to put Oregonians back to work, to intervene to drop the appeal.

Last month local planners and the La Pine City Council rejected land use concerns raised by Williams. Biogreen Sustainable Energy Company, the company proposing the plant, has worked for 18 months to gain the necessary permits, power interconnect, access to water and wastewater infrastructure, and other project entitlements for the $75 million plant. According to Biogreen, the union is prepared to use legal tactics necessary to force the company to sign an exclusive agreement with the union for construction of plant, even the to point that it is never built. “This is as an attempt to force our company to agree to union exclusivity,” said Rob Broberg, President of Biogreen. “But we are moving forward with all aspects of the project. The irony is that we would likely hire many union or union-affiliated workers to build the plant.”

Williams has used appeals with a variety of agencies elsewhere in Oregon for large construction projects where unions seek exclusivity. In 2002, he formed an opposition group to protest a proposed co-generation power plant in Jefferson County. In 2007, he successfully opposed a proposed Gatorade/PepsiCo bottling facility in Albany, which would have created 250+ well-paying permanent jobs. Neither project was built.

The Biogreen power plant is expected to employ at least 50 construction workers for approximately 18 months. Once operational, the plant will employ around 25 people directly and create another 60 indirect jobs from fuel gathering, transportation and other support services. Each of these permanent jobs is expected to have a multiplier effect of at least two, meaning that a minimum additional 50 jobs will be created in the community in excess of support services. Biogreen’s private investment will effectively double the La Pine’s tax base, which is badly in need of the added tax revenue for basic operations. 

Crook County’s first-ever college campus center under construction
It’s been years in the making, and now it’s reality. By fall of this year, a new state-of-the-art college campus center will open its doors in Prineville, offering local residents a host of educational opportunities, including college credit courses. It’s all part of the Open Campus project, led by Oregon State University and Central Oregon Community College, that aims to bring higher education to rural Oregon. Local leaders celebrated with a groundbreaking ceremony on Monday, January 24th. More than 60 students have already signed up for winter term classes, even before the building is complete.

“Having a facility like this opens up all kinds of possibilities to help make education more accessible for local residents, and improve the skill set of the existing workforce,” said Prineville Economic Development Manager Jason Carr.

Carr also said it provides another tool Crook County can use when recruiting new companies and family-wage jobs to the area. The 12,000sf building was paid for through a $3.2 million federal grant, and nearly $1 million from the latest voter-approved bond measure by COCC.

News from HiDEC

Moving to higher hanging fruit, HiDEC turns its 2011 focus to company culture
With over three years under its belt extracting the benefits of lean productivity and efficiency, the members of the High Desert Enterprise Consortium (HiDEC) have elected to concentrate this year on culture-related topics. It’s a natural evolution, as companies want to address the more qualitative aspects of building employee skills and buy-in. HiDEC members, in response to a 2010 member survey, indicated they were most interested in lean leadership, teamwork, supervisory skills and problem solving, and the 2011 learning schedule below reflects that direction. (Note: HiDEC will still offer lean 101 and lean office classes this year.)

• 1st Quarter Problem Solving
• 2nd Quarter Teamwork
• 3rd Quarter Lean Leadership
• 4th Quarter Open

HiDEC membership also decided to increase member-hosted on-the-floor events and to look internally within the HiDEC membership to provide training. “We have many talented and experienced trainers within HiDEC’s membership,” said Steve Bettis, the Consortium’s Steering Committee Chair. “Giving those trainers the opportunity to teach other HiDEC companies is a win-win for all of our members.”

If your company is interested in hosting an event or if you would like to lead a class or on-the-floor event, please email Eric Strobel or call 541-388-3236.

Central Oregon Companies in the News

Mid Oregon Credit Union achieves significant milestones
Bill Anderson, President and CEO of Mid Oregon Credit Union, announced recently that Mid Oregon Credit Union had reached two significant milestones. Their membership has grown to over 20,000, and the lending portfolio surpassed $100 million in loans. Serving Deschutes, Jefferson and Crook counties, Mid Oregon is a full-service, member-owned, financial cooperative that has served Central Oregonians since 1957. For more information about Mid Oregon Credit Union visit their website.

Prestigious legal magazine recognizes five Karnopp attorneys
Karnopp Petersen, LLP, announced that Super Lawyers magazine, which reaches more than 13 million readers, honored five of their attorneys in their 2010 list. Tom J. Sayeg and Jim Petersen were selected as Super Lawyers in the field of Business and Corporate Law; Mike Dillard for Business Litigation. In the Rising Star category (under 40 years and practicing less than 10 years), Kurt Barker and Jinnifer Jeresek were designated as Rising Stars in Employment Defense Litigation and Business Litigation, respectively. Through a peer selection process and independent research, the magazine identifies no more than 2.5 percent of the lawyers in each state.   

Upcoming Events in Central Oregon

EDCO News

We’d like to thank the members - new and renewing alike - who fund EDCO’s efforts to recruit new companies to the region and help local companies grow their operations.

Renewing Members
Over 50 Central Oregon companies have pledged their ongoing support for EDCO by renewing their membership. We thank each and every renewing member for underwriting EDCO’s efforts to recruit new companies, help local companies expand, and build a strong entrepreneurial base in our region.

Platinum Level: BendBroadband (1997), Bend Memorial Clinic (2010), Central Oregon Community College (1993), Home Federal Bank (2001), OSU Cascades Campus (2000), Qwest Communications (1995)

Gold Level: Brooks Resources Corporation (1986), Les Schwab Headquarters (1986)

Financial Institutions: Wells Fargo Bank (1987)

Silver Level: Becky Breeze & Company (1995), Bend Research, Inc. (2001), Central Oregon Workforce Coordinating Council (2009), Foreterra (2010), G5 Search Marketing (2006), Ruff Wear (2006), The Center: Orthopedic & Neurosurgical Care & Research (2007), Warm Springs Composite Products (2009)

Bronze Level: Advanced Energy Systems (2010), Arbor Mortgage Group (2008), Ater Wynn, LLP (2007), Ball Janik (2001), Barrett Business Services (2005), Best Western Rama Inn (2005), Broken Top Club (2008), Bryant, Lovlien & Jarvis, P.C. (1987), Carlson Sign (1987), Cascade Business News (1994), Classic Coverings and Designs (2010), Covenant Technology Solutions (2009), DVA Advertising (1987), ETRIX Group (2008), Fratzke Commercial Real Estate (2007), Goody’s (2007), Lean Power (2007), Microsemi (1995), Midstate Fertilizer Company (1987), Opportunity Foundation (2007), Opportunity Knocks (2006), Oregon Business Development Corp. (2007), Pahlisch Homes (2006), RCA Management (2005), Rebound Physical Therapy (2010), Sunlight Solar Energy, Inc. (2009), Tennant Development (1996), The Riverhouse (1996), W & H Pacific (2005)

Individual Level: Coldwell Banker – Norma Dubois (1995), Edward Jones Investments – Brian Stallcop (2006), Merlot Mortgage (2005), Northwestern Mutual – Rick Margeson (2009), Steve Scott & Co. Realtors – Louie Hoffman (1999), Steve Scott & Co. Realtors – Brian Meece (1996), The Aspirational Alliance (2010)

New Members
Please welcome these new members to our growing fold of supporters – over 320 members supporting EDCO’s work to diversify our economy.

Knife River - Gold
Knife River is a vertically integrated mining and construction materials company that specializes in contract work that includes excavation, underground utilities, and roads. They provide a full range of civil construction services and materials for industrial, institutional and commercial clients. Operating in 17 states and providing leading construction services, Knife River employs 125 people in Central Oregon during the peak season. Visit their website

Security Pros - Bronze
For more than 17 years, Security Pros, Inc. has been delivering professional security protection to Central Oregon commercial, industrial and governmental clients. They provide security around the region and protect over $1,000,000,000 (yes, that’s one BILLION dollars) in client asset value every night of the year, including PV Powered and Suterra manufacturing sites, Les Schwab corporate headquarters, and the Old Mill District. They are the largest, most established, best trained, best equipped and most professionally run security services provider in the area. Find out more about Security Pros here.

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