An intense legislative session…a growing group of expanding local companies…revamped statistical publications…many recruitment proposals plus several hard-earned site visits. That’s been our last quarter at EDCO. It’s been three months since publication of the last eCon Update, so we thought you might enjoy a different approach—a higher level view of economic development activity in each of Central Oregon’s communities. And because it’s timely, we’re also providing an update on legislative issues we believe critical to the region as well as a quick overview of the Venture Catalyst Program efforts.
Each EDCO Regional managers provides a brief overview of current business projects below, as well as top line progress on key strategic initiatives, typically infrastructure-related and multi-phased. Please contact them directly if you’d like more details.
| EDCO Legislative Summary of the 2011 Session |
Roger Lee
Three key pieces of legislation on EDCO's list for the 2011 Session have worked their way through the approval process.
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The first, SB301, reconnected Oregon's tax code to the federal and became law relatively early in the session. In addition to saving time and money for tax return preparation, the law provides an important link to federal tax credits for businesses investing in new equipment and facilities.
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HB3017, which reauthorizes enterprise zones across the state, has been a top priority of EDCO and other economic development organizations. The bill passed both the House and Senate unanimously and now awaits the Governor's signature.
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HJM 20, a memorial bill directing Congress to designate a national UAV (unmanned aerial vehicle) testing area in Central/Southeastern Oregon, also passed both chambers unanimously. EDCO worked closely with our Central Oregon legislative delegation, providing written and oral testimony when the bills came up for discussion in committee.
As the session winds down, several bills remain on EDCO's watch list:
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HB2624 - the bill would require private companies participating in Oregon's Enterprise Zone program to pay prevailing wages on certain projects. The bill has been unable to gain a floor vote after being passed out of committee. A discharge petition has been requested and EDCO is strongly recommending members not to sign. This bill is special interest lawmaking at its worst.
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SB795 – requires review and revision of the Transportation Planning Rule (TPR) and places higher priority on economic development than the TPR’s requirement to reduce traffic congestion, which has resulted in local jurisdictions and developers having to pay for road improvements before the State will approve new developments. The bill passed unanimously in the Senate but appears stalled in the House. A related bill, SB766, appears to still have life. Both bills have been significantly watered down by Oregon land use lobbyists such that they may provide little relief from onerous TPR impacts.
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HB3627 – Provides lottery bonding authority for OSU Cascades to purchase a building to house a new applied research center and graduate programs. The bill had a favorable hearing but its ultimate fate may not be known until the very end of the session.
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HB 317A – reauthorizes Oregon's e-commerce zone program. Two of nine statewide zones are in Central Oregon (Redmond and Bend) and have benefited job-creation projects in those communities. The engrossed bill has had a hearing and is awaiting approval for a house vote. The bill is likely to be considered in a wider context by the JTAX Sub-committee which is evaluating a host of tax credit programs.
If you would like to write letters of support or opposition to any of the bills noted above, please contact EDCO at 541-388-3236.
Eric Strobel
Job creation activity in the export sector in Bend is being driven mainly by existing, relatively new tech companies, bioscience firms and the brewing industry. Companies are eagerly searching out new markets, expanding product offerings and capitalizing on market share. Light manufacturing orders are rebounding with company leaders like Structus Building Technologies adding several employees. We see a glimmer of hope in the general aviation industry with Windward Performance’s steady growth at the Bend Airport. Our cluster of recreational equipment manufacturers continue to innovate and expand, evidenced by Kialoa Paddles’ latest products that have set the standard in paddle boarding.
A few highlights:
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The Bend Forgivable Loan Program continues to attract applicants and provide critical capital support to Bend and Deschutes County companies. As of June 1, $68,000 of the $100,000 Bend fund and nearly half of Deschutes County’s $300,000 have been awarded to growing companies. Several companies are scheduled to be approved in the next few weeks.
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EDCO’s Unmanned Aerial Systems (UAS) initiative continues to progress with the recent connection to several UAS management companies interested in partnering for future test projects. EDCO has received more than a dozen inquiries from UAS companies interested in the initiative and possibly locating to the area when testing begins. Negotiations continue with several public entities to engage as an official sponsor, which is required by the FAA for testing.
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The Bend Economic Development Advisory Board (BEDAB), created by EDCO and the City to develop a strategic plan for economic development in Bend, will soon become an official city advisory committee. Applications have been received and the committee will consist of six private business representatives and three business support organization representatives. The BEDAB will work with Jon Skidmore, the City of Bend’s Business Advocate, to advise the City Council on economic development matters, and ensure that the City promotes a supportive business environment to foster economic growth.
Jon Stark
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Redmond Economic Development, Inc. (REDI) is experiencing business expansion interest in Redmond as five local company projects are well underway in the City. REDI is working with these companies which represent the administrative services, consumer products, medical device, and metal products manufacturing industries.
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MEDISISS, one of Central Oregon’s fastest growing companies, recently released a
new video campaign to share the safety, technology, and financial benefits of their FDA-registered re-processed single use medical device products. The video provides an overview of how the company reduces equipment costs by half for hospitals and surgery centers, while reducing medical waste in landfills. MEDISISS has grown to more than 100 employees and continues to land contracts with medical providers across the United States.
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Redmond-based military and medical device manufacturer
LMH Industries continues to grow. The company, which started operations in March, has more than 15 openings in customer service, material handling, precision soldering and administration. To apply, contact
Teresa Bigness 541-548-8196 x 327 at the WorkSource Oregon Employment Department.
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Chris Redgrave, Director of COCC’s Manufacturing and Applied Technology Center (MATC) recently restructured a large portion (23 of 65 credits) of the curriculum for the educational program in Redmond. This fall he intends to redevelop and forge new relationships with the business community to further identify workforce skill demands of regional employers and to build lean training and teamwork methodologies across program offerings. EDCO and REDI have been working with Chris to assist him in his future goals for the MATC program. Scheduled to open in fall 2013, COCC is also well underway in designing the building for the future planned 30,000 square foot Technology Education Center in Redmond.
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The Redmond Planning Commission is moving one step closer to completing its work on the
Mixed Use Live Work Zone by holding a
public hearing June 7th. The Zone is intended to encourage re-development in the area east of Hwy 97 on Evergreen Avenue by addressing a number of non-conforming uses in the current industrial zone.
Jason Carr
From Facebook’s grand opening to a new brewery in downtown Prineville, Crook County is seeing positive signs of increased economic activity. While still stubbornly high, the unemployment rate is down from 17% a year ago to 15% now, and has dropped for the past four months. Here’s a list of other projects:
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Enterprise Zone expansion complete – EDCO’s Prineville office has completed the expansion of the enterprise zone, adding 447 acres of industrial land. Several large lots and properties with rail access were included in the zone.
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Prineville to get first brewery – Joseph Baker of Solstice Brewing Company plans to open a pub and brewery this fall. EDCO helped the entrepreneur with tax incentives offered through the Enterprise Zone.
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Water for future growth – The City of Prineville is nearing completion of a study with Newton Consultants that should determine where the best source of water is near the airport. This could help the City solve some of its long-term supply issues, and pave the way for future industrial projects.
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Mark Zuckerburg visits Prineville – Facebook founder Mark Zuckerburg made a surprise appearance at the Facebook grand opening celebration on April 15th. The company also announced $95,000 in grant donations to local schools and non-profits for 2011.
Wayne Pearson
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Warm Springs Tribes are very close to a final decision of sponsoring UAV test areas on the reservation in coordination with EDCO’s Aviation/Aerospace efforts. This could be a “game changer” for job creation in on the reservation, Jefferson County, and Central Oregon.
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The EDCO-initiated Jefferson County Education Council is making great strides on many fronts of workforce training, internships, parent/student influence for continuing education, curriculum development and collaboration with education partners.
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A financial partner was found for the jetty rock project, Old Maid Quarry, and an experienced quarry manager has been hired. The use of this rock for jetty projects, rail ballast, soil amendment and basalt fiber has the potential to create many family wage jobs in the County.
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In recent elections, makeup of the Board of the Deschutes Valley Water District changed with the addition of a strong and knowledgeable board member (Bob McConnell), which will hopefully help foster an attitude of being more open to using the utility’s abundant, clear water for job creation.
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Despite strong local support, a legislative initiative to allow non-irrigated land use for
utility-grade solar farms was not successful in the 2011 Session. The
Oregon Department of Land Conservation and Development was successful in stalling HB 3595 and a related legislative bill—both of which died in committee. This is a major set-back for Jefferson County and Oregon in securing new solar energy projects that will bring jobs and investment to the area.
Mac Hay
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Gutenberg College, who has announced its intention to relocate to Sisters in 2012, will hold an open campus event today in Sisters June 7th at 5:30 pm at the former Weitech Building (across from the new Post Office) to introduce their college to Sisters.
Jim Coonan
The following is a summary of activity by the Venture Catalyst Manager in support of early stage/start-up businesses in Central Oregon. (As of April this position previously held by Scott Larson is now held by Jim Coonan.)
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In the first two months Jim met with 37 companies—close to one a day! Increased use of the Stable of Experts (a portfolio of experts willing to help Central Oregon’s early stage companies) is being employed to help match promising startups with needed resources, such as financial expertise, product planning and funding options.
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Plans for the October Bend Venture Conference are moving forward with several key changes for this year’s conference:
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Due diligence will be driven by the investors themselves abetted by expert mentors; also investors can expect additional training.
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Steve Westberg was identified as the new Investment Manager for the 2011 LLC investment vehicle.
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The Oregon Growth Account will provide a matching investment of $50K if private funds reach $100K, and
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Two awards are planned for this year, including one for a later stage company and one for a concept stage company.
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Jim is working with Tech Alliance and TechSpace Bend to develop a plan to convert the shared co-working space into an accelerator with a strong mentoring and educational format.
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A draft concept paper which defines a plan for more structured support of entrepreneurial activity in Central Oregon is being reviewed by EDCO staff and others in the investment, educational and business communities.
What Makes a Great OENtrepreneur? Attend OEN's Annual Awards and Find Out
Oregon Entrepreneurs Network (OEN) hosts their lively annual Tom Holce Entrepreneurship Awards dinner on Wednesday, September 21, 2011, from 5:30 to 8:00 pm at the Hilton Portland Downtown. Find out which Oregon startups have the best vision, unbridled enthusiasm and endless patience to surmount the many obstacles inherent in any new venture. Find out more about the here.
A new program for employers can assist you in hiring new employees
Leslie Mitts, Employment Counselor at COIC (Central Oregon Intergovernmental Council), tells us the organization has received funding for an On-the-Job Training Program to assist employers in hiring and training new employees. The funding will pay up to 50% of the trainee's wages for a training period of up to six months. Businesses can choose to have COIC pre-screen trainees for eligibility be provided a list of potential trainees. The process is fairly simple, involving minimal paperwork. If you are interested in using this program, Leslie (541-322-2434) encourages you to visit www.coic.org and contact her with any questions.
We’d like to thank this diverse group of renewing members for their ongoing support of EDCO’s work.
Individual Level: Pacific Coast Transaction Advisors (2009),
Bronze Level: Barber, Barrett, Turner Architects (2000), Hatch Product Development (2007), Ochoco Lumber (2007)
Silver Level: Integra Telecom (2010), Pronghorn (2006)
Gold Level: Hooker Creek Companies (2004)
Platinum Level: US Bank (1998)