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2007-1644-Resolution No. 2007-149 Recorded 12/3/2007REVIEW'D L LEGAL C UNSEL COUNTY OFFICIAL NANCYUTES BLANKENSHIP, COUNTY CLERKDS Vd 2007-1644 COMMISSIONERS' JOURNAL110 1101 a 1111111 so 111011 ME 1 0210151 a RON 12/03/2001 04;2:36 PM 2007-3644 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON A Resolution Adopting the Regional Investment Strategy and Comprehensive Economic * Resolution No. 2007-149 Development Strategy and Utilizing Priorities WHEREAS, Crook, Deschutes and Jefferson counties have entered into an agreement to create the Central Oregon Community Investment Board for the purpose of preparing a regional investment strategy and receiving regional investment funds; and WHEREAS, regions that fail to submit a regional investment strategy shall not receive moneys for projects and activities to implement those strategies from the Oregon Economic and Community Development Department; and WHEREAS, the Central Oregon Regional Investment Strategy will also be utilized as the Comprehensive Economic Development Strategy for Central Oregon Intergovernmental Council, a federally recognized economic development district; and WHEREAS, the Central Oregon Community Investment Board has prepared the Central Oregon Regional Investment Strategy to meet the statutory requirements for preparation of a regional investment strategy; NOW, THEREFORE, BE IT RESOLVED that the Deschutes County Board of Commissioners hereby adopts the Central Oregon Regional Investment Strategy and Comprehensive Economic Development Strategy, recommends that it be submitted to the Oregon Economic and Community Development Commission and the Governor of the State of Oregon for consideration under the 2007-09 regional investment program, and commits to utilizing the priorities contained within the Strategies as guidance in directing resources towards community and economic development activities where appropriate. Approved this 28`" Day of November 2007 by the Deschutes County Board of Tammy ATTEST: &1,4,,k� �� Recording Secretary 0 Luke, Public Hearing Notice November 6, 2007 Notice is hereby given that the Deschutes County Board of Commissioners will hold a public hearing on Wednesday, November 28, at 10:00 AM at the Deschutes Services Building, 1300 NW Wall Street, Bend, OR. The purpose of the hearing will be for the Board of Commissioners to hear public comments on the draft Central Oregon Regional Investment Strategy, prepared by the Central Oregon Community Investment Board. Following the public hearing, the Board of Commissioners will act on a request to adopt the strategy and to recommend it to the Oregon Economic and Community Development Department as the region's investment strategy. For additional information, please contact Andrew Spreadborough at Central Oregon Intergovernmental Council, (541) 504-3306. 2007 Central Oregon Comprehensive Economic Development Strategy Central Oregon Intergovernmental Council (COIC) Regional Investment Strategy Central Oregon Community Investment Board (COCIB) 11/14/07 Prepared by: Central Oregon Intergovernmental Council Produced with funding assistance by: U.S. Department of Commerce — Economic Development Administration State of Oregon Lottery — Regional Investment Funds managed by the Oregon Economic and Community Development Department Table of Contents 1. Executive Summary ...........................................................................................................................................3 2. Strategy Purpose and Planning Process........................................................................................................5 3. Needs Examination and Resource Analysis...................................................................................................7 a. Data Analysis — Regional Trends.........................................................................................................................8 b. Regional Strength and Weakness Summary .......................................................................................................9 Strengths of the Central Oregon Region..............................................................................................................9 Weaknesses of the Central Oregon Region......................................................................................................10 c. Opportunities and Threats for the Central Oregon Region.................................................................................10 Opportunities......................................................................................................................................................11 Threats...............................................................................................................................................................11 d. External Trends and Forces that Affect the Regional Economy........................................................................11 e. Regional Advantages and Disadvantages.........................................................................................................12 RegionalAdvantages: ........................................................................................................................................ 12 RegionalDisadvantages: ................................................................................................................................... 12 f. Regional Economic Development Organizations................................................................................................12 4. Priority Goals and Objectives — Long Term..................................................................................................13 a. Vision Statement................................................................................................................................................13 b. Core Values........................................................................................................................................................14 c. Goals and Objectives..........................................................................................................................................14 Strategy 1: Increase Prosperity for All Central Oregon Residents in Rural and Urban.....................................14 Strategy 2: Develop and Support the Local Workforce.....................................................................................15 Strategy 3: Conserve, Enhance, and Market Environmental Amenities............................................................16 Strategy 4: Develop and Maintain Economic Infrastructure..............................................................................16 Strategy 5: Enhance Local Leadership and Institutional Capacity to Facilitate Regional Economic Development......................................................................................................................................................17 5. Identified Priorities —Short Term....................................................................................................................18 6. Central Oregon Community Investment Board - Six -Year Investment Strategy & Implementation Plan19 7. Rural Action Plan and Rural: Set-Aside..........................................................................................................20 8. Barriers to Implementation.............................................................................................................................21 9. Plan for Involvement of Disadvantaged and Minority Groups....................................................................22 10. Special Uses of Funds...................................................................................................................................23 11. Management Plan..........................................................................................................................................24 Section1. Administrative Agent.............................................................................................................................24 Section2. Application Process..............................................................................................................................24 ProjectSelection Criteria....................................................................................................................................25 Section 3. Project monitoring and disbursements.................................................................................................26 12. Evaluation Plan..............................................................................................................................................26 13. First -Source Hiring Agreements for Benefited Businesses......................................................................27 AppendixA — Central Oregon Data Profile........................................................................................................28 AppendixB — COCIB Bylaws..............................................................................................................................59 Appendix C - COIC Financial Audit Results......................................................................................................62 Appendix D — Public Hearing and Notice Process...........................................................................................63 central Oregon Comprehensive Economic Development Strategy Page 2 Regional Investment Strategy 1. Executive Summary This community and economic development strategy provides a framework for long-term economic development planning efforts in the Central Oregon region, which is made up of Crook, Deschutes and Jefferson Counties, Oregon. The information and strategy outlined in this document combines and integrates the: • Comprehensive Economic Development Strategy (CEDS) of the Central Oregon Intergovernmental Council (COIC), required by the U.S. Department of Commerce Economic Development Administration; and the • Regional Investment Strategy required of the Central Oregon Community Investment Board by the Oregon Economic and Community Development Department This publication is made possible through U.S. Department of Commerce Economic Development Administration grant funding; and Oregon State Lottery — Regional Investment Funds administered by the Oregon Economic and Community Development Department. It is the intent of the Central Oregon Comprehensive Economic Development Strategy/Regional Investment Strategy to coordinate the region's needs, priorities, strategies and goals for economic and community development, while aligning those efforts with the Oregon Economic and Community Development Department's Strategic Plan. This strategy provides broad, over -arching regional strategies, goals and objectives that can be supported by regional economic development organizations. In addition, this Strategy is intended to carry out the legislative direction for the Central Oregon Community Investment Board in establishing and funding the Regional Investment Program, especially with respect to advancing Oregon's economy by focusing on state priorities taken for ORS 285B.230(3) and ORS 285A.020(3): • Promote favorable investment climate to strengthen businesses, create jobs and raise real wages; • Improve the national and global competitiveness of Oregon companies; • Assist Oregon communities in building capacity to retain, expand and attract businesses; • Promote the structures and processes of public and private organizations to effectively create, adapt, foster and sustain economic development in the state, emphasizing rural and distressed areas; • Ensure that economic strategies will reinforce Oregon's long-term prosperity and livability; and • Coordinate economic development efforts and efforts to support a locally skilled workforce in order to compete in the global economy. The Comprehensive Economic Development Strategy process resulted in the development of a vision for the region, and identification of a series of long term priority goals to sustain and improve the region's economy. Vision: The businesses, governments, community organizations, and people of Central Oregon have created a strong regional economy that is diversified, resilient, innovative, sustainable, and that supports a rising tide of prosperity which benefits citizens of all income levels throughout the region. GOAL I: A Distinctive, Competitive Economic Region with Competitive Communities that Leverage Economic Gain from Their Assets GOAL II: A Business Climate that Supports the Region's High Level of Entrepreneurialism and Innovation GOAL III: Increased Regional Economic Self -Reliance through Diversification of Local Resources Available to Businesses and Citizens GOAL IV: High -Quality K-20 Education Systems to Produce, Retain and Attract Highly Qualified Workforce GOAL V: High -Quality Social and Human Services to Produce, Retain and Attract a Quality Workforce GOAL VI: Sufficient Supply of Housing Affordable for Workforce GOAL VII: Restored Streamflow and Water Quality to the Deschutes River and its Tributaries GOAL VIII: Protected Open Spaces, Critical Wildlife Habitat, and Working Landscapes GOAL IX: Restored Forests and Rangelands GOAL X: Preserved and Enhanced Air Quality in Central Oregon GOAL XI: Economic Decision Makers are Provided with Information and Analysis which Demonstrates the Importance of Environmental Quality to the Regional Economy GOAL XII: Transportation: Functional and Efficient Movement of Goods, Services, Residents and Visitors Into, Within, Through, and From the Region GOAL XIII: Sufficient Supply of Land Affordable for Commercial, Industrial and Residential Development Central Oregon Comprehensive Economic Development Strategy Page 3 Regional Investment Strategy GOAL XIV: Adequate Public Works and Private Utility Infrastructure GOAL XV: Adequate Community Facilities GOAL XVI: Ongoing Regional Planning is in Place to Preserve and Enhance the Region's Economic Appeal and Effect Orderly Economic Development GOAL XVII: New Resources are Identified to Help Fill Economic Needs GOAL XVIII: Adequate Local Government Capacity and Favorable Public Perception Regarding Economic Development Services This strategy will be used in part by the Central Oregon Community Investment Board (COCIB) as a guide for investing in economic and community development initiatives in Central Oregon. COCIB's strategies for addressing the long-term priority goals are as follows: 1. Family wage job creation in Crook, Deschutes and Jefferson Counties; 2. Job Retention in Crook, Deschutes and Jefferson Counties; 3. Maximizing local, state and federal funds leveraged for job creation and retention projects; 4. Promoting structures and processes of public and private organizations to effectively create, adapt, foster and sustain economic development in Central Oregon; 5. Ensuring that the economic strategies reinforce Central Oregon's long-term prosperity and livability; 6. Coordinating economic development efforts to support a locally skilled workforce in order to compete in the global economy. Through the CEDS planning process, past regional Needs and Issues processes, the 2007 Infrastructure Needs Inventory, and through other methods of economic analysis, several major projects, programs and activities have been identified for focus over the next six years: • Support of industry clusters, including secondary wood products, transportation equipment/aerospace/aviation, manufacturing, renewable energy, tourism. • Support emerging clusters including natural resources and prison/corrections (Jefferson County). • Infrastructure development and improvement, specifically as related to job creating properties (specific priority projects to be identified through the Infrastructure Needs Inventory). • Essential community facility development and improvement (specific priority projects to be identified through the Infrastructure Needs Inventory). • Transportation issues, including state highway modernization needs, traffic flow on state highway corridors, and funding for local road network, state highways. This has impacted the efficient mobility of goods, services and the workforce within and between Central Oregon communities, and to and from the region. • Rail issues, including supporting the expansion of the Prineville Rail Depot to provide rail support to industrial land. • Support formation and stabilization of the City of La Pine — the state's newest incorporated city • Continue to support targeted training for the regions clusters of Secondary Woods products, Aerospace Production and Parts, and targeted sectors including Appeal and Sporting Goods, High Technology including Information Technology, Renewable Energy, Light Industrial and Manufacturing, and Research and Development. Assist in the retention, expansion, and recruitment for these industries. • ADA accessibility issues for community facilities. • Access to higher education in areas outside of Bend. • Address workforce supply; shortage of qualified workers. • Address housing affordability trends. • Need for regional public transit. • Challenges surrounding endangered species reintroduction. The Strategy focuses specific attention on rural areas of the region, which are defined as Crook and Jefferson counties in their entirety, and Deschutes County outside of the urban growth boundary of Bend. The Central Oregon Community Investment Board will ensure rural communities are notified of the availability of Regional Investment Funding, and will monitor project awards to ensure that rural communities are adequately served by this program. The strategy will support projects and activities targeted specifically to rural communities, including: Central Oregon Comprehensive Economic Development Strategy Page 4 Regional Investment Strategy • Business development projects that lead to job creation and retention. While rural job creation project typically result in less net job gain than in urban areas, the projects are extremely valuable to rural distressed communities. Specific effort will be made to invest in rural community job creation projects. • Infrastructure development, community facility development. Through the infrastructure needs inventory, priority rural projects will be identified and supported. While population totals are lower in rural areas and resources are limited, infrastructure and facility costs can be equal to costs in urban areas. Additional support of these communities is needed. • Technical support and assistance. Rural communities often lack the capacity to identify and secure funding for critical projects. COCIB, COIC and EDCO provide support and assistance to rural and distressed communities. • Specific focus on economic clusters critical to rural communities, including secondary wood products, travel/tourism, renewable energy, corrections/prison industry, agriculture, natural resources, and manufacturing. • Marketing of low-cost, available industrial and job creating properties. To evaluate performance toward implementing this strategy, the Central Oregon Community Investment Board will monitor jobs created/retained, other funding sources leveraged, wages of jobs created, and number of community infrastructure/facility projects completed. This information will be reported every six months to OECDD. 2. Strategy Purpose and Planning Process This community and economic development strategy provides a framework for long-term economic development planning efforts in the Central Oregon region, which is made up of Crook, Deschutes and Jefferson Counties, Oregon. The information and strategy outlined in this document combines and integrates the: • Comprehensive Economic Development Strategy (CEDS) of the Central Oregon Intergovernmental Council (COIC), required by the U.S. Department of Commerce Economic Development Administration; and the • Regional Investment Strategy required of the Central Oregon Community Investment Board by the Oregon Economic and Community Development Department Economic Development District COIC serves as the Economic Development District representing Crook, Deschutes and Jefferson counties as designated by the Economic Development Administration (EDA). One function of the Economic Development District is developing, maintaining and updating the Comprehensive and Economic Development Strategy (CEDS). The CEDS is the result of a local planning effort, and serves as a guide for regional economic growth. The CEDS is a pre -requisite for EDA funding for all public works, economic adjustment, and planning grant projects within Central Oregon. The CEDS clarifies economic development organizational roles, and how economic development organizations work together in Central Oregon; identifies priorities and projects that are consistent with the economic development strategies, which leads potentially to funding; and identifies regional economic development strategies on which communities within the region can collaborate to bring about sustainable economic prosperity. Central Oregon Intergovernmental Council (COIC) is a Council of Governments organized under ORS 190 by the three counties and seven cities of Central Oregon. COIC is governed by a 15 -member board made up of elected officials appointed by each of the member governments — Crook, Deschutes and Jefferson counties; the cities of Bend, Culver, Madras, Metolius, Prineville, Redmond and Sisters; and appointed representatives of key economic sectors — business and industry, tourism and recreation, agribusiness and agriculture, timber and wood products, and the unemployed/underemployed. Since 1972, COIC has served Central Oregon, working with community partners to create and sustain a healthy regional economy. Formed initially to serve the region by providing employment and training services, COIC has evolved into the diverse organizations it is today by changing as Central Oregon changes. COIC works with individuals, with businesses and with entire communities. As a Council of Governments, COIC involves all three counties, seven cities and representatives from key economic sectors in policy making, program planning and delivery. Through program offerings in employment and training, community and economic development, and business loans, COIC is able to offer valuable services to the community. The overarching purpose of COIC's Economic Development program is to strengthen Central Oregon communities through the creation and retention of family -wage jobs in industries that support local quality of life, as defined by each community. COIC's Economic Development programs are aimed at benefiting the entire Central Oregon Central Oregon Comprehensive Economic Development Strategy Page 5 Regional Investment Strategy region, with a specific emphasis on increasing the capacity of communities to provide economic development services and manage economic development needs over the long-term. The core functions of COIC's Economic Development services are: • to explore and document regional economic development planning and inter -jurisdictional collaboration opportunities; • to provide finance and industry development support to Central Oregon businesses and entrepreneurs; • to assist local jurisdictions in developing the information, infrastructure, public improvements and other necessary conditions that ready communities to accommodate the startup, retention, expansion, and recruitment of business; and • to serve those communities that do not have professional economic development expertise or capacity. Central Oregon Community Investment Board COIC serves as administrative and fiscal staff to the Central Oregon Community Investment Board. The Central Oregon Community Investment Board (COCIB) was created in 1988 through an agreement between the counties of Crook, Deschutes and Jefferson. The Board's purpose is to develop a regional investment strategy, and to award Regional Investment Fund dollars to support community and economic development projects throughout the region. The Central Oregon Community Investment Board members led development of the 2007 Regional Investment Strategy, which guides specific Regional Investment Fund allocations to projects addressing the long-term and short-term economic development priorities of the region. Crook, Deschutes and Jefferson Counties entered into an Intergovernmental Agreement Central Oregon Intergovernmental Council (COIC) for administrative and fiscal management of the Regional Investment and Rural Investment Program. COCIB Organizational Structure and Board Membership Crook, Deschutes and Jefferson Counties have entered into an Intergovernmental Agreement (IGA) establishing the Central Oregon Community Investment Board to oversee the State's Regional Investment Program. The responsibilities of the Board, its membership, and operational guidelines are specified in the IGA and the COCIB Bylaws. The Board consists of 17 members with each county appointing five members plus alternates. These members represent the broad community and economic development interests of the region, and include representatives from cities, counties, and significant representation from the private economic sector and rural interests. 2007-2009 Central Oregon Community Investment Board Roster Crook County Deschutes County Jefferson County Scott Cooper (CHAIR) David Inbody (Exec. Comm.) John Hatfield (Exec. Comm.) Crook County Jude Deschutes County Jefferson County Commissioner Brenda Comini Mike Daly Janelle Orcutt Crook Co. Commission on Children Deschutes County Commissioner Madras Sanitary and Families Larry Henderson Eric Sande Jim Wilson Les Schwab Tire Ctr. Redmond Chamber of Commerce JTS Animal Bedding Bobbi Young Judy Trego John Curnutt Bank of the Cascades Staff to Congressman Walden JBC Management Sally Goodman Mike Schmidt Parrish Van Wert Prineville Disposal Bend Chamber of Commerce Deer Rid a Correctional Facility Larry Smith (alternate) Darwin Thurston (alternate) Alternate - Vacant Les Schwab Tire Ctr. Mid State Electric central Oregon Comprehensive Economic Development Strategy Page 6 Regional Investment Strategy Comprehensive Economic Development Strategy Committee COIC convened an ad hoc committee to guide the 2007 CEDS development process. The committee's functions were to provide: 1) Guidance and broad perspective throughout CEDS development process. "Big picture" thinkers. 2) Review of strategy and consultation from specific representational perspective 3) Technical expertise in issue areas. 4) Identifying community and economic development needs. 5) Identifying and communicating long-term priority goals and strategies. 6) A SWOT analysis for the region. The CEDS priority goals and objectives were reviewed by organizations in the region, including: • Economic Development for Central Oregon Board (private business) • Bend 2030 Economic Strategy Committee (private business, city, county) • Central Oregon Workforce Investment Board (workforce committee) • Central Oregon Intergovernmental Council Board (public and private business) • Central Oregon Community Investment Board (public and private business) Regional Investment Strategy The Regional Investment Program was initiated by the 1999 Oregon State Legislature, as an update to the previously existing Regional Strategy program. The Regional Investment Program was made into law through Oregon Revised Statutes 285B.230-.264 and its implementing rules are found and formalized in Oregon Administrative Rules (OAR) Chapter 123. All references to specific requirements of the law are listed by ORS number. This section of the Regional Investment Strategy meets State Program requirements for the Regional Investment Fund made available to the Central Oregon Region: • ORS 285B.239(e): "A long-term plan to implement the regional investment strategy," • ORS 28513.239(f): "A six-year investment strategy that describes projects and activities to be undertaken..." As described in ORS 2856.239, the Central Oregon Community Investment Board has designed an investment strategy to focus on the performance measures of "long-term and short-term job creation and retention activities," "leveraging long-term investments," and "maximizing moneys leveraged with short-term investments." 3. Needs Examination and Resource Analysis The Central Oregon Comprehensive Economic Development Strategy Committee participated in a regional analysis exercise in 2006. The process included identification of regional economic strengths, weaknesses, opportunities, and threats. The committee also identified "exterior" trends that affect the regional economy. The Central Oregon Comprehensive Economic Development Strategy Page 7 Regional Investment Strategy CEDS Committee =Representatives Private and Non -pr fit: Roger Lee Economic Development for Central Oregon Director, Representing Private Business Mike Schmidt Bend Chamber of Commerce Director, Representing Chambers of Commerce Cyndy Cook Central Oregon Regional Housing Authority Director, Representing Housing Karen Pringle Central Oregon Partnership Interim Director, Representing Poverty and Unemployed Tod Heisler Deschutes River Conservancy Director, Representing Natural Resources C Ivia Hayes 3E Strategies Director, Representing Sustainability Public: Mike Morgan City of Madras Administrator, Representing Central Oregon Cities Alan Unger City of Redmond Mayor, Representing Central Oregon Cities Scott Cooper Crook County Judge, Representing Central Oregon Counties Brian Shetterly City of Bend Long Range Planning Manager, Representing Regional Land Use Ray Ran ila Tribal Planner, Representing the Confederated Tribes of Warm Springs James Middleton Central Oregon Community College President, Representing Higher Education Beth Wickham COCC Business Development Center Director, Representing Business Development Tom Moore Central Oregon Intergovernmental Council Director, Representing Workforce Janet Brown Governor Kulon oski's Regional Coordinator, Representing the State of Oregon Jay Patrick Redmond City Councilor and COIC Chair, Representing the Economic Development District The CEDS priority goals and objectives were reviewed by organizations in the region, including: • Economic Development for Central Oregon Board (private business) • Bend 2030 Economic Strategy Committee (private business, city, county) • Central Oregon Workforce Investment Board (workforce committee) • Central Oregon Intergovernmental Council Board (public and private business) • Central Oregon Community Investment Board (public and private business) Regional Investment Strategy The Regional Investment Program was initiated by the 1999 Oregon State Legislature, as an update to the previously existing Regional Strategy program. The Regional Investment Program was made into law through Oregon Revised Statutes 285B.230-.264 and its implementing rules are found and formalized in Oregon Administrative Rules (OAR) Chapter 123. All references to specific requirements of the law are listed by ORS number. This section of the Regional Investment Strategy meets State Program requirements for the Regional Investment Fund made available to the Central Oregon Region: • ORS 285B.239(e): "A long-term plan to implement the regional investment strategy," • ORS 28513.239(f): "A six-year investment strategy that describes projects and activities to be undertaken..." As described in ORS 2856.239, the Central Oregon Community Investment Board has designed an investment strategy to focus on the performance measures of "long-term and short-term job creation and retention activities," "leveraging long-term investments," and "maximizing moneys leveraged with short-term investments." 3. Needs Examination and Resource Analysis The Central Oregon Comprehensive Economic Development Strategy Committee participated in a regional analysis exercise in 2006. The process included identification of regional economic strengths, weaknesses, opportunities, and threats. The committee also identified "exterior" trends that affect the regional economy. The Central Oregon Comprehensive Economic Development Strategy Page 7 Regional Investment Strategy committee then identified economic development organizations within the region, and summarized relevant regional plans that should be coordinated with the regional economic goals and strategies that result from this process. a. Data Analysis — Regional Trends COIC conducted a detailed data analysis to develop a clear understanding of the regional economic situation. Appendix A includes data summary tables and narrative analysis. Following is a general overview of key demographic trends that informed the CEDS Committee in their long-range goal and priority development process. Category Data Trend with Appendix Table Citation Demographics Rapid population growth throughout the region Table 1.1 Projected continued rapid population growth Tables 1.3, 1.4 Relative increases in Hispanic population Table 1.5 Aging of the population, relative increases in 50-64, 65+ groups Tables 1.6, 1.7 Income & Population Lower average wage, per capita income, median household income than state avg. Table 2.1 Decreasing unemployment rates lower than state average Table 2.3 Highest proportional job growth in the state Projected relative decreases in construction trades, wood products manufacturing employment Highest projected increases in government, hospitality & leisure employment Rapidly increasing real estate valuations Table 2.12 Workforce Concerns Poverty rates above state average in Crook, Jefferson counties Table 3.1 Rapidly increasing home prices Table 3.2 Gap in the supply of housing affordable to the workforce Table 3.6 Low county ranking for educational attainment - Crook and Jefferson counties Table 3.17 High percentage of inter -city commuting to places of employment Table 3.21 Rising fuel prices Tables 3.25, 3.26, 3.27 Business/Indust Layoffs/closures of several large manufacturers High costs for industrial/commercial land in Bend, Redmond; lower costs in Madras, Prineville, La Pine Table 4.6 Land Use Increasing number of residential building permits Table 5.6 Urban growth — UGB expansions Table 5.7 Destination Resort development Infrastructure Increased use of road/highway system Tables 6.4, 6.5, 6.7, 6.8 Increasing demands upon municipal infrastructure due to population growth, other factors Quality of Life Air quality that meets or exceeds standards section 7.a Some occurrences of high nitrate levels in ground water section 7.b Listing of Deschutes and Crooked Rivers on DEQ 303(d) list section 7.c Primary Industries in Central Oregon Coun Indust Crook Agriculture ry Distribution and Warehousing Education and Health Services Leisure and Hospitality Wood Product Manufacturing Deschutes Computer and Electronic Manufacturing Recreation and Transportation Equipment Manufacturin Transportation, Warehousing and Utilities Education and Health Services Professional and Business Services Leisure and Hospitality Wood Product Manufacturing Jefferson Agriculture Education and Health Services Manufacturing (including wood products manufacturing) Recreational Equipment Manufacturin Government local, state, federal, tribal Source: Economic Development for Central Oregon Central Oregon Comprehensive Economic Development Strategy Page 8 Regional Investment Strategy b. Regional Strength and Weakness Summary This is a summary of items identified by CEDS committee members during the facilitated discussion at the December 15, 2005. Strengths of the Central Oregon Region a. Our People and Culture Civic engagement — the level of citizen engagement is broad; people care about place to an extent not seen in other communities. People want to contribute to the quality of life. "Pioneer Spirit" — a different/independent way of thinking; innovative and collaborative public actions that strengthen the economy. People — increasing racial and cultural diversity. Entrepreneurship — According to one measure, Bend metro area ranks as the 7 in the nation for entrepreneurship. Opportunities — a vital economy and sense of economic optimism. b. Education and Training Higher education — COCC and OSU Cascades Campus. Workforce — educated and skilled. NOTE: this strength is variable throughout the region — lack of educated/skilled workforce is a threat in some communities within the region. Man in -migrants are bringing skills and a spirit of community engagement. A strong support network for transitioning workforce. c. Local Government Open and inclusive governments and organizations — institutions are generally open to public participation. Political leadership — high quality elected leadership, transparency. High quality city/county government staff. Innovative local government practices(addressing development, schools, parks, etc). Tribal relations — improved communications between local governments and the Confederated Tribes of Warm Springs. Coordination between organizations and governments. Public-private partnerships — a willingness to develop partnerships between government and business. d. Local Businesses, Capital, and Support Diverse economy — particularly in Deschutes County, with eight sizable economic clusters. A business community that is willing to take risks. Existing employers — a strong business base that is supportive of communities and socially responsible, many locally owned and operated. A core of employers that provide good 'obs. A strong network of business support services — chambers of commerce and other groups/organizations. Availability of capital for business. Banking — a large number of banking institutions; regionally -based banks. Supportive business advocacy organizations. e. Environmental Amenities Natural environment and scenic beauty. Abundant clean air and water. Sunshine, hospitable climate. Outdoor recreation opportunities/public lands. f. OtherAmenities Improving/increasing cultural opportunities. Housing — large numbers of upscale houses, high degree of housing availability. Upscale housing brings money into the region inspecific ways. Specific economic and social amenities — Redmond Airport, Deschutes County Fair and Expo Center, Mt. Bachelor and numerous resorts. Medical community — a large offering of high-quality facilities and providers. Low crime rate — safe neighborhoods. Communications stem — television, radio and print Telecommunications infrastructure — fiber optics and broadband, throughout the region (including many rural areas). Regional standing — Central Oregon has been "discovered" nationally, and statewide political importance is increasing. A relative level of seclusion — distance from urban areas. g. Affordable Housing Efforts Affordable housing quality — well-designed/well managed housing communities, often developed through public private partnership, that are vehicles to opportunity for residents. Support for affordable housing — a climate of support in developing affordable housing to assist the most vulnerable residents. Central Oregon Comprehensive Economic Development Strategy Page 9 Regional Investment Strategy Weaknesses of the Central Oregon Region a. Keeping up with Growth Population growth was recognized as a challenge, weakness, and threat. Projected rapid growth of the senior population demographic (this was seen as a "threat" rather than a weakness Unemployment rates — in -migration and pockets of poverty are driving up unemployment rates. Lack of regional vision — strategic regional vision for land use and planning, connections between communities (long range comprehensive plan for the region) b. Challenges for Workforce — quality and quantity varies throughout the region, and by sector. Workforce Businesses shortages in some areas of the region Cost and supply of industrial and job creating properties (varies throughout the region — Bend has high costs and a shortage of industrial and job creating property, while other communities have affordable land available Regional variability in land cost and availability — this dynamic presents challenges for regional level planning. In some parts of region the cost of lands for housing is very high. c. Strains upon the Economic stratification — a strong service based economy results in low wages and a Workforce growing economic gap between the service workers and other residents. Demands for specific kinds of low-wage services by particular segments of the growing population might be causing our local economy to be weighted heavily towards low-wage service 'obs. High poverty rate — andspecifically child poverty Wages — lower pay scales and average wage Lack of "career ladders" — challenges in moving from an $8/hour job to a family wage job. NOTE: there was some discussion and disagreement on this point. Affordability of housing — traditional housing for lower income homeowners, such as mobile home parks, are being converted to higher -cost housing Lack of child care options and affordability Drug use d. Transportation Issues Geographic isolation — distance from markets Lack of public transportation within and between communities Transportation costs — all modes Lack of regional connectivity in transportation — higher commuter rates have resulted in road "bottlenecks". "To and through" problems. Shortage of funds for public infrastructure e. Access to Health Care Access to health care — lack of affordability/high insurance costs. Some employers unwilling to provide coverage. Medical providers not accepting certain kinds of coverage. Distance from medical care — with the trend of medical consolidation in Bend, other communities are losing local medical care options. High occurrence of "no pays" in some communities. Senior access to health care — lack of access to primary care for seniors, in part due to low Medicare payments f. Water Supply Issues Water access — the presence of "perverse incentives" for using water. Difficulty in shifting water to new uses (i.e. agriculture to civic or instream uses). Difficulty in capitalizing on -efficiency gains in use of water. Present water allocations stem not suited to current needs. Lack of a regional water use plan g. Education and Training Limited support for public schools — variable throughout the region. There is a concern that Challenges man in -migrants are not willing to invest in education. School overcrowding and lack of funding for education Combating the trend of child disengagement in school — the common occurrence of children not engaging in education because he/she views school as "boring' Community college program availability — variable throughout the region, as a result of consolidation trend. As COCC decreases presence in communities outside of Bend, access to COCC programs and services decreases. Specifically, a lack of credit courses outside of Bend. Centralization at college has resulted, in part, from declining funding Shortage of distance learning opportunities Lack of vocational training opportunities State trends - such as public education financing structure challenges. The group recognized the impact of statewide trends on the local economy. c. Opportunities and Threats for the Central Oregon Region A CEDS Committee facilitated discussion on the Opportunities and Threats facing the region on February 16, 2006 produced the following lists. Central Oregon Comprehensive Economic Development Strategy Page 10 Regional Investment Strategy Opportunities Better Coordination of Regional Economic Development Opportunities in Clean and Renewable Energy Development Restoration of Salmon and Steelhead to Upper River Areas (recreation, iconic ...) Tap into Visitors to Region (taxes? other ways to get more from visitors?) Better Linkages Among Transportation, Tourism, and Economic Development Becoming an Entrepreneurial Mecca for the Northwest (resources, expertise ...) Innovation in Distance Learning Smart Growth Planning (Infrastructure, Services, Schools, Crime, Open Space Protection ...) Well Planned Growth can Provide Many Benefits Expand Philanthropy Workforce Investment — Linkages to Education Service Delivery Increasing Cultural Diversity Expansion of Existing Clusters Tap into Retirees (Baby Boomers as Workers, Other Ways for Retirees to Contribute ...) Develop Alternative/Public Transportation Threats Parochialism Threatened and Endangered Species Regulation Insufficient Education Funding Insufficient Transportation Funding In general, Insufficient Public Funding Aging Population Care, Healthcare and Transportation Needs Threats to Natural Resource Base and Quality of Life Amenities from Poorly Planned Growth Pattern of Development Driven Solely by Market Forces Not Enough Leadership Negative Perception of Government Lack of Opportunity for Non-English Speakers Due to Lack of Services Strains Upon the Workforce (costs of housing, childcare, education, etc) Disproportionate Growth in Low Wage Industries Limited Addiction Services De -stabilization of the Family Unit Land Cost and Availability Limited Planning for Growth Results in Problems: Transportation, Quality of Life Degraded Declining Levels of Civic Disengagement Region of Haves and Have Nots d. External Trends and Forces that Affect the Regional Economy External trends and forces are the state, national and/or worldwide trends that greatly impact the regional economy but for which there is limited local control or influence. These trends are important to understand and consider when planning for regional economic development. 1. Growing, Aging Population 2. Increasing Social and Cultural Diversity 3. Shifting Economic Base — from manufacturing to service and knowledge-based economy 4. Energy Supply Instability and Cost Increases; projected shortages of fossil fuels 5. Education Funding Challenges (specifically for Oregon) 6. Decreasing Public Resources — unstable Oregon state budget 7. Methamphetamine and Other Drug Use Increases, corresponding social problems 8. Expanding Use of Communications Technology — worker mobility, distance education, outsourcing, telehealth 9. Cooling of National Real Estate Market 10. Increasing Health Care Costs and Decreasing Percentage of Population Covered 11. Globalization of Economic Competition 12. Shrinking Middle Class 13. Increasing Interest Rates central Oregon Comprehensive Economic Development Strategy Page 11 Regional Investment Strategy 14. Global Climate Change 15. Terrorism/Natural Disaster 16. Lack of Trust/Belief in Government e. Regional Advantages and Disadvantages Regional Advantages: 1. People - skilled workforce (in part due to in -migration of skilled professionals), strong business community, entrepreneurial spirit. 2. Higher education institutions - COCC and OSU Cascades 3. Strong, collaborative local governments and leaders 4. Quality of life - environmental benefits, outdoor recreation amenities, cultural amenities, scenic quality, emerging 5. Availability of capital, strong business support climate 6. High quality medical providers 7. Airport 8. Housing availability, diversity in housing options (large numbers of upscale houses) 9. High quality affordable housing 10. Regional image - desirable location 11. Communications infrastructure - telecom, television, radio, print 12. Regional wealth - significant numbers of wealthy retirees, lifestyle 6migrds, and second home buyers. Real estate equity gains. 13. Strength in a number of economic clusters 14. Number of shovel -ready industrial sites; enterprise zones Regional Disadvantages: 1. Challenges in keeping up with population growth - impacts on schools, roads and other infrastructures, environmental impacts, increased homelessness numbers, rising crime rates 2. Skilled workforce availability (varies across region) 3. Rising real estate costs - stresses on workers, businesses; insufficient quantity of affordable housing 4. Rising inter -community commuter rates - in part a function of uneven housing costs across the region 5. Increasing road congestion in cities 6. Distance from markets, ports and interstates 7. Workforce challenges: lack of affordable child care, low average wages 8. Consolidation of higher education and medical services in Bend, local health care systems increasingly unviable 9. Water supply issues 10. Low levels of educational attainment in parts of the region 11. Scarcity of industrial lands in parts of the region 12. Inadequate diversification of regional economy 13. Lack of public transit 14. Lack of services to non-English speaking citizens 15. Rising drug use f. Regional Economic Development Organizations Central Oregon has a broad array of economic and workforce partner organizations. Businesses and individual job seekers have access to a range of training, technical assistance, grants and loans, and other support services. The following outline of those involved in regional economic development efforts is not exhaustive. However, it does provide an indication of the multiple facets and many players involved in economic development in the region. Active input, communication, collaboration, and cooperation among these entities is a cornerstone of developing and implementing the regional economic development strategy. Central Oregon Intergovernmental Council (COIC): COIC provides workforce and economic development services to individual businesses and job seekers. Workforce development services include: worker skills training, job search skills, recruiting and screening of job applicants, and customized trainings. Central Oregon Comprehensive Economic Development Strategy Page 12 Regional Investment Strategy Central Oregon Community Investment Board (COCIB): COCIB is a regional economic development board that receives state lottery dollars and allocates fund to community and economic development projects in Central Oregon. Economic Development for Central Oregon (EDCO): EDCO is a private, non-profit organization that attracts new, permanent primary jobs and capital investment to Central Oregon through marketing and recruitment, and also assists and supports the growth of existing businesses. COCC Business Development Center: The COCC Business Development Center provides advice and information to assist businesses, with a focus on assisting the expansion of existing firms in the Central Oregon area. Services include: • Business plan and loan proposal development; • Market planning and marketing; • Reviewing financial strategies for your business; • Adopting healthy, profit -oriented business operations; and • Evaluating the business feasibility and profitability. Chambers of Commerce: Seven chambers of commerce are located throughout Central Oregon, providing business support and visitor services. Redmond Economic Development (RED): RED is a partnership between private business and the public sector to encourage economic development in the City of Redmond. The organization's Mission is to increase the quality and number of jobs as well as capital investment within the community. Prineville/Crook County Economic Development: Prineville/Crook County Economic Development assists existing businesses with expansion or retention issues, works on behalf of Prineville and Crook County on new business and industry recruitment projects, and on other strategic community-based projects with significant impacts to the local economy. The Prineville/Crook County Economic Development program is a partnership between EDCO, the Prineville/Crook County Chamber of Commerce, Crook County, and the City of Prineville, and local businesses. Central Oregon Workforce Response Team (WRT): The WRT receives and allocates Employer Workforce Training Funds, which are private sector grant dollars that support the retention and growth of living wage jobs, a skilled workforce and competitive businesses in Crook, Deschutes and Jefferson Counties. The emphasis of the funds is to upgrade skills of the private sector workforce in order to increase productivity, keep Central Oregon businesses viable and competitive, and to offer new skills and opportunities to Central Oregon workers. Opportunity Knocks (OK): OK is an entrepreneurially-managed, volunteer -driven small business assistance organization whose mission is to train, educate and provide problem solving opportunities to small business owners. Services include peer-to-peer learning in either a Board of Advisors setting or in a seminar format. Economic Revitalization Team (state agencies): The ERT was established to focus state agencies on working together at the local level to increase economic opportunity and help local governments and business and property owners bring industrial sites to "shovel ready" status. The ERT emphasizes multi -agency coordination on projects of local and statewide significance. Workforce Investment Board: The Central Oregon Workforce Investment Board is a public/private partnership with a mission is to serve employers and workers by leading and coordinating regional workforce services, which include recruitment, personnel, financial & business services as well as training & education. COWIB accomplishes its goals through the oversight of a one-stop service center - WorkSource Redmond -- and other service sites in Bend, Madras, Prineville, and La Pine. Central Oregon Jurisdictions: • Counties: Crook, Deschutes, Jefferson • Cities: Bend, Culver, La Pine, Madras, Metolius, Prineville, Redmond, Sisters • Tribe: Confederated Tribes of the Warm Springs 4. Priority Goals and Objectives — Long Term Through the development of the Central Oregon Comprehensive Economic Development Strategy, a set of long- term priorities were identified for the development of the regional economy. a. Vision Statement The businesses, governments, community organizations, and people of Central Oregon have created a strong regional economy that is diversified, resilient, innovative, sustainable, and that supports a rising tide of prosperity which benefits citizens of all income levels throughout the region. Central Oregon Comprehensive Economic Development Strategy Page 13 Regional Investment Strategy b. Core Values • Economic conditions vary within individual Central Oregon communities. Each community's unique economic development opportunities will be supported through regional economic development. • The region will capitalize on its high levels of entrepreneurialism and local leadership, rich natural and cultural amenities, and excellent quality of life to increase regional economic self-reliance, attract and grow local businesses that compete well in all markets, and attract a quality workforce. • Through quality training, education, and human services the region will produce a quality workforce which will be retained and sustained through abundant opportunities and living wage jobs. • Local governments and institutions will help to create a fertile environment for quality economic development by providing focused incentives, environmentally and community sensitive land for industrial/commercial development, infrastructure, and integrated regional planning. The resulting business climate will assist private enterprises to thrive in Central Oregon. c. Goals and Objectives The Goals and Objectives can be categorized into one or more of five meta -level "Strategies" for economic development. Each of these strategies has been promoted by economic development theorists and practitioners as a critical underpinning of a healthy community or regional economy. Economic development goals and actions, in any setting, generally flow from a belief in one or more of these strategies. Due to the diversity of perspectives on the CEDS Committee, all of the strategies are considered to be important: Strategy 1: Increase Prosperity for All Central Oregon Residents in Rural and Urban Communities by Balancing, Diversifying, and Developing the Region's Economy Strategy 2: Develop and Support the Local Workforce Strategy 3: Conserve, Enhance, and Market Environmental and Cultural Amenities Strategy 4: Develop and Maintain Economic and Community Infrastructure Strategy 5: Enhance Local Leadership and Institutional Capacity to Facilitate Economic Development Strategy 1: Increase Prosperity for All Central Oregon Residents in Rural and Urban Communities by Balancing, Diversifying, and Developing the Region's Economy New traded sector and investment capital is critical for building a strong regional economy. Additionally, diversification of businesses and industries provides regional economic resilience to downturns in any one or set of associated industries. A regional economy also needs supportive, value -adding government and support services to maximize growth, and rich internal linkages to promote maximum recirculation of capital. Finally, a prosperous regional economy is defined by rising prosperity among all groups and communities within the region. GOAL L"ADistinctive, Competitive Economic Region with Competitive, Communities: that Leverage Economic Gain from Their Assets Objectives: a. Build the infrastructure to support and grow strategic industry clusters • Support expansion of university -level education and research & development programs • Support expansion, responsiveness of, and access to technical/vocational training programs, community colleges, and K-20 workforce programs. Such programs should prepare individuals for opportunities across the broad range of Central Oregon's diverse economy. At the same time educational/training programs should be a key factor in developing a workforce to support identified economic clusters. • Support the development of cluster coordination/development capacity • Develop strong and sustainable regional and local marketing programs to highlight regional and community assets b. Facilitate new job creation and economic diversification through recruitment of diverse new traded -sector companies across all industries that offer family -wage employment c. Facilitate new job creation through expansion of existing traded -sector companies across all industries that offer family -wage employment d. Support retention of existing traded -sector companies across all industries that offer family -wage employment e. Develop regional economic development planning and programs that recognize differentiation among the region's communities Central Oregon Comprehensive Economic Development Strategy Page 14 Regional Investment Strategy GOAL IV A Business Climate that Supports the Regions High, Level of Entre reneurialism and Innovation Objectives: f. Develop a business -friendly environment which is responsive, timely, adds value and regulates to levels necessary to protect public health and safety and preserve community values that make Central Oregon an attractive place to live and to do business. s. Expand access to and affordability of quality childcare options q. Sustain the region's status as Entrepreneurial Mecca for the northwest resources, expertise) t. Improve skills and workforce opportunities for non-English speaking residents — e.g. expand availability of ESL, provide Spanish language training to employers h. Implement and expand business administration BA and/or MBA with emphasis in entrepreneurialism u. Expand access to affordable health care services in all communities i. Nurture companies to prepare them for venture capital or sustainable operation ; e.g. microcredit programs, technical assistance, business planning GOAL III: Increased Regional Eco'n6 tIC Seff,Rellance through Diverslfication:of Loyal, Resources Available to Businesses and Citizens This is ancillary to the above two goals. Use incentives and support services to maximize traded sector business development congruent with regional values. Retain capital in the region through collaborative ventures and communication systems which increase links es between businesses, and between citizens and local businesses. Objectives: j. Promote the development of locally -produced products and services (inputs) for local businesses (business to business buying and selling) k. Promote the development of local) - roducts products and services for local consumers I. Protect working landscapes to protect Central Oregon food and fiber resources m. Develop a regional clearinghouse/network to link local investors and local investment opportunities. n. Develop a diverse set of affordable local power sources. Strategy 2: Develop and Support the Local Workforce A skilled, stable and adequately sized workforce is critical to the success of the Central Oregon economy. However, Central Oregon employers are experiencing difficulty attracting and retaining qualified employees due to a variety of factors, including: • Tightening of the labor pool/low unemployment rates — a shortage of highly qualified workforce • A shortage of affordable workforce housing in some communities • Increased inter -city commuting due to uneven housing costs across the region, at a time when fuel costs are increasing • Need for improved educational attainment levels and appropriate worker skills for the unique industry base in each community Opportunities exist for improved connections and coordination between the business community, education institutions, and workforce development organizations for the benefit of Central Oregon workers. Additionally, improved access to affordable workforce housing, child care, and health care services are needed. The Strategy 3 Goals address the need to develop and support the local workforce for the benefit of the regional economy: GOAL°IV:,High-Quality K-20 Education S stems to Produce, Retain and Attract Highly Qualified Workforce Objectives: o. Improve regional equity in access to education - expand local community college educational opportunity s. Expand access to and affordability of quality childcare options through (a) campuses in outlying communities, (b) transportation networks, and (c) distance learning t. Improve skills and workforce opportunities for non-English speaking residents — e.g. expand availability of ESL, provide Spanish language training to employers innovations supported by expanded communications networking, course development and student support u. Expand access to affordable health care services in all communities systems p. Improve the regional workforce by leveraging financial support and improving linkages between private business, workforce development aencies and education institutions q. Improve and expand workforce training opportunities for job seekers and incumbent workers (entrance/pre- entrance/pre- employment): em to ment): upgrading, business efficiency, retraining, alternative career training r. Strengthen integration and efficiency of the K-20/CC/University/Workforce Training continuum GOAL V: Hi h-Quali Social and Human Services to Produce .Retain and Attract a QualityWorkforce Objectives: s. Expand access to and affordability of quality childcare options t. Improve skills and workforce opportunities for non-English speaking residents — e.g. expand availability of ESL, provide Spanish language training to employers u. Expand access to affordable health care services in all communities GOALVI Sufficient Supply,,of Housin " Affordable for Workforce' .!�", Objectives: v. Improve communication and coordination between economic development and housing organizations (e.g. the need for new housing units for the workforce of new or expanding businesses w. Develop local plans that define regulation, zoning and/or incentives to produce affordable housing; develop Central Oregon Comprehensive Economic Development Strategy Page 15 Regional Investment Strategy public-private partnerships to ensure the long-term supply of affordable housing for the workforce in all communities x. Develop opportunities for incentive -based employer -assisted housing programs y. Preserve existing affordable housing stock z. Improve regional access to state and federal affordable housing programs; improve advocacy and communication/regional awareness of programs Strategy 3: Conserve, Enhance, and Market Environmental Amenities Central Oregon's environment is the context and framework within which our economy operates. Environmental amenities are the natural capital at the foundation of our regional economy. Careful, sustainable management of natural resources and environmental amenities is critical to avoid degrading our future economic opportunities and potential. Unplanned growth has the potential to degrade the very environmental amenities and quality of life that drive our growth and development in the first place. GOAL fill: Restored StreaMflow and Water Quali to'the Desnhutes River and its Tributaries ;, . Objectives: aa. Develop a water management plan to restore stream flow while meeting the needs of agricultural, municipal and industrial users nn. Develop an integrated long-range transportation plan for the region, which coordinates and integrates local bb. Implement non -point source pollution reduction measures in both urban and rural areas GOAL Vlll: Protected -0 en Spaces, Critical Wildlife Habitat and Working Landscapes-, Objectives: cc. Develop programs to increase the economic viability of farms and working forests to counteract the trend toward urbanization of these lands dd. Promote urban development patterns that reducesprawl and facilitate efficient transportation ee. Maximize working landscape retention through rural land use policies ff. Delineate and preserve critical wildlife corridors Identify and preserve valuable recreational lands GOAL IX: Restored Forests and Rangelands„,,. V w - , Objectives: hh. Capitalize on opportunities to utilize small diameter forest and rangeland fuels to protect ecosystems and nn. Develop an integrated long-range transportation plan for the region, which coordinates and integrates local stimulate resource -sector jobs planning for all transportation modes rail, air, roads, transit, bicycle/pedestrian) ii. Encourage land management practices that allow agricultural and forest producers to take advantage of oo. Provide for/support transportation options appropriate to the commuting needs of Central Oregon "Green” niche markets (e.g. Oregon Country Beef, Forest Stewardship Council GOAL X: Preserved and Enhanced Air 'Quali 'Jin Central Ore on Objectives: Implement strategies to reduce regional greenhouse gas emissions kk. Implement strategies to reduce diesel particulate matter emissions ll. Manage regional smoke emissions from wildfire and prescribed fire to minimize health impacts GOAL XL Economic Decision Makers are Provided withJnfarmafiiori" and,Analysis which Demonstrates the importance" of Environmental Qual ` :ta the Re tonal Edonam Objectives: mm. Illustrate how a quality environment can attract high -wage, knowledge-based industries; skilled and educated workers; in -migrants with significant non -labor income; and other economic assets Strategy 4: Develop and Maintain Economic Infrastructure Public and private infrastructure provides the basic foundation of a functioning economy - serving the businesses and residents of Central Oregon while also facilitating access to markets outside the region. Central Oregon governments, organizations and businesses strive to provide quality infrastructure within the context of rapid regional population growth, development, and expanding urban growth boundaries. This rapid growth has led to the need for intergovernmental communication, collaboration, and planning in developing and maintaining infrastructure. Strategy 4 goals and objectives support the construction, expansion and rehabilitation of essential public and private infrastructure and facilities necessary to create and retain private sector jobs and investments, provide access to markets, attract private sector capital, promote regional competitiveness, and protect regional quality of life. GOAL XII: Transportation: Functional and Efficient Movement of Goods, Services, Residents and Visitors Into, Within, ; 1rhr6u fi, and From th- R ions Objectives: nn. Develop an integrated long-range transportation plan for the region, which coordinates and integrates local planning for all transportation modes rail, air, roads, transit, bicycle/pedestrian) oo. Provide for/support transportation options appropriate to the commuting needs of Central Oregon Central Oregon Comprehensive Economic Development Strategy Page 16 Regional Investment Strategy workforce Develop and/or improve intermodal facilities for the efficient movement of goods and services qq. Secure funding for backlog of transportation project needs, as per COACT project needs list GOAL XIII: Su, 11cleiritSupply,of Land Affordable for,Cammerdial Industrial and Residential Develo `Ment '.''. Objectives: rr. Develop an adequate supply of affordable commercial land in Central Oregon communities for infrastructure construction a community and a regional level ss. Develop an adequate supply of affordable industrial land in Central Oregon communities vv. Construct and/or expand infrastructure facilities in high-density areas and extend infrastructure to areas ft. Develop an adequate supply of affordable residential land in Central Oregon communities GOAL XIV: Adequate Public Works,antl Private Utility Infrastructure Objectives: uu. Identify infrastructure deficiencies and capacity needs and develop financing and implementation strategies ww. Identify community facility needs and develop financing and implementation strategies for community facility development for infrastructure construction a community and a regional level xx. Develop an organizational structure that provides a forum for ongoing regional planning dialogue across vv. Construct and/or expand infrastructure facilities in high-density areas and extend infrastructure to areas issue areas (e.g. housing, transportation, and economic development), and identifies opportunities for within urban growth boundaries. GOALW`Adequate Comrntiihllty Objectives: ww. Identify community facility needs and develop financing and implementation strategies for community facility development Strategy 5: Enhance Local Leadership and Institutional Capacity to Facilitate Regional Economic Development Population growth and development patterns have contributed to challenges across the region such as a lack of housing that is affordable to the workforce in some communities, increasing commuter rates, an acute shortage of qualified workforce, and overburdened local government budgets. There is a need for broad discussion among communities, between local government and state and federal government, and among public agencies and the private sector. To effectively address the myriad of issues, a forum for cross -issue regional discussion and integration should be formed, and the broader community should be engaged in developing and implementing solutions. The Strategy 5 goals address the need to develop and support regional planning, resource development, and leadership development for the benefit of the regional economy: GOAL XVI."'Ongoing Regional Planning Win Place to Preserve and Enhance the Region's Economic Appeal 'and Effect OrdenEconomlc'Oev'elo merit Objectives: xx. Develop an organizational structure that provides a forum for ongoing regional planning dialogue across businesses. Use internet to effectively communicate availability of economic development resources. issue areas (e.g. housing, transportation, and economic development), and identifies opportunities for ccc. Encourage and promote innovative, bold approaches by local governments to achieve resources necessary integration of planning across issue areas. to support adequate infrastructure for economic development (e.g. increased gas tax, issuance of bonds for yy. Develop a regional growth strategy integrating planning for economic development, transportation, land infrastructure use, workforce, housing, and natural resources ddd. Create a data depository or clearinghouse (e.g. detailed city -level data and analysis), to facilitate informed zz. Encourage cities of the region to establish programs to monitor on-going absorption of urban economic program and planning decisions lands (commercial/industrial), and to designate Urban Reserve areas outside existing or future UGB's, to facilitate more efficient UGB expansions as needed to ensure an adequate lands base for economic development. GOAL XVII: New Resources are Identified to Hel FIII Economic Needs Objectives: aaa. Develop strategies to tap into philanthropy and retirees; bbb. Develop local capacity to better access state and federal grant opportunities. Direct resources to help businesses. Use internet to effectively communicate availability of economic development resources. ccc. Encourage and promote innovative, bold approaches by local governments to achieve resources necessary to support adequate infrastructure for economic development (e.g. increased gas tax, issuance of bonds for infrastructure ddd. Create a data depository or clearinghouse (e.g. detailed city -level data and analysis), to facilitate informed program and planning decisions ryeee. support the development of community leadership fff. Encourage and facilitate public officials to attend ethics training or seminars (potentially provided by AOC, ec LOC or COCO ggg. Improve dialogue between local government and public; educate public about value of public services, what cities/counties are doing, local government policy decisions. Central Oregon Comprehensive Economic Development Strategy Page 17 Regional Investment Strategy 5. Identified Priorities —Short Term The Central Oregon Community Investment Board will address the long term priorities identified in Section 4 by supporting projects and initiatives that result in one or more of the following short-term priorities, which are consistent with ORS 285B.230(B): Central Oregon Community Investment Board Short -Term Priorities 1. Family wage job creation in Crook, Deschutes and Jefferson Counties; 2. Job Retention in Crook, Deschutes and Jefferson Counties; 3. Maximizing local, state and federal funds leveraged for job creation and retention projects; 4. Promoting structures and processes of public and private organizations to effectively create, adapt, foster and sustain economic development in Central Oregon; 5. Ensuring that the economic strategies reinforce Central Oregon's long-term prosperity and livability; 6. Coordinating economic development efforts to support a locally skilled workforce in order to compete in the global economy. Through the CEDS planning process, the regional Needs and Issues process, the regional Infrastructure Needs Inventory, and through other methods of economic analysis, several major projects, programs and activities have been identified for focus over the next six years: • Support of industry clusters, including secondary wood products, transportation equipment/aerospace/aviation, manufacturing, renewable energy, tourism. • Support emerging clusters including natural resources and prison/corrections (in Jefferson County). • Infrastructure development and improvement, specifically as related to job creating properties (specific priority projects to be identified through the Infrastructure Needs Inventory). • Essential community facility development and improvement (specific priority projects to be identified through the Infrastructure Needs Inventory). • Transportation issues, including state highway modernization needs, traffic flow on state highway corridors, and funding for local road network, state highways. This has impacted the efficient mobility of goods, services and the workforce within and between Central Oregon communities, and to and from the region. • Rail issues, including supporting the expansion of the Prineville Rail Depot to provide rail support to industrial land. • Support formation and stabilization of the City of La Pine — the state's newest incorporated city • Continue to support targeted training for the regions' clusters of Secondary Woods products, Aerospace Production and Parts, and targeted sectors including Appeal and Sporting Goods, High Technology including Information Technology, Renewable Energy, Light Industrial and Manufacturing, and Research and Development. Assist in the retention, expansion, and recruitment for these industries. • ADA accessibility issues for community facilities. • Access to higher education in areas outside of Bend. • Address workforce supply; shortage of qualified workers. • Address housing affordability trends. • Need for regional public transit. • Challenges surrounding endangered species reintroduction. Alignment with OECDD Strategic Plan The long-term and short-term priorities align with the goals established for Oregon Economic and Community Development by the Legislature and the Oregon Economic Development Commission: OECDD 2007-2009 Strategic Plan Goals 1. Promote a favorable investment climate to strengthen business, create jobs, and raise real wages 2. Assist Oregon's communities to build capacity to retain, expand and attract new business 3. Improve national and global competitiveness of Oreqon companies. The Regional Investment Strategy short-term priorities align directly with the OECDD Strategic Plan goals, with their focus on supporting on -the -ground job creation projects, maximizing resources, and coordination among economic development organizations. Central Oregon Comprehensive Economic Development Strategy Page 18 Regional Investment Strategy Additionally, the CEDS long-term priority Goal I incorporates elements of the OECDD strategic plan, and is the primary vehicle for consistency with the OECDD plan (see page Strategy 1, Goal 1, page 15). 6. Central Oregon Community Investment Board - Six -Year Investment Strategy & Implementation Plan The Central Oregon Community Investment Board's six year strategy and implementation plan is contingent upon Legislative action in 2008 to fund the Regional Investment Program. If the Legislature funds the program, COCIB intends to implement its Community Investment Strategy through funding projects that align with the Board's long- term goals and priorities, and that address specific short-term priorities: 1. Family wage job creation in Crook, Deschutes and Jefferson Counties; 2. Job Retention in Crook, Deschutes and Jefferson Counties; 3. Maximizing local, state and federal funds leveraged for job creation and retention projects; 4. Promoting structures and processes of public and private organizations to effectively create, adapt, foster and sustain economic development in Central Oregon; 5. Ensuring that the economic strategies reinforce Central Oregon's long-term prosperity and livability; and 6. Coordinating economic development efforts to support a locally skilled workforce in order to compete in the global economy. The Community Investment Board has adopted a two-pronged approach that will effectively utilize Regional Investment Fund dollars to address the above priorities. First, the Board will obligate a portion of its Regional Fund allocation to Economic Development for Central Oregon (EDCO) to fund private sector job creation through the "Business Development Opportunity Fund" project. Secondly, the Board will utilize remaining Regional Investment Program funds, less administrative expenses, to provide "Immediate Opportunity" grants to projects identified by and/or supported by cities, counties and the Confederated Tribes of Warm Springs for the purpose of funding job creation and retention projects. Both the Business Development Opportunity Fund and the Immediate Opportunity Fund will make grants only to eligible recipients; COCIB will not make loans. Following are detailed descriptions of these initiatives: Business Development Opportunity Fund: The Community Investment Board made private sector investments in the 2001-2003, 2003-2005, and 2005-2007 biennia through Economic Development for Central Oregon (EDCO). These investments focused on private -sector job creation through business recruitment and retention activities. The Community Investment Board chose to grant funds to EDCO for the following reasons: • EDCO has a highly visible public, web and community presence and often serves as a "gateway" for new businesses seeking to enter Central Oregon. • EDCO's board of directors is representative of all Central Oregon communities, including rural areas. • EDCO has an experienced economic development staff that is well networked with other Oregon Economic Development professionals and well respected in the region. • Due to the presence of a "retention specialist" on its staff, EDCO can often respond to the needs of businesses struggling to stay in the region. • Because EDCO is a private non-profit entity, it has the ability to act rapidly and to respond to immediate job creation and retention opportunities. • EDCO is well networked with the Chambers of Commerce in the region, which provides an alternative "gateway" to the region for new businesses seeking to the region and those businesses struggling to stay in the region. The fundamental components of this project are as follows: • The Community Investment Board and EDCO will establish contractual targets for job creation, retention, and funds leveraged. These targets will be based on the Community Investment Board's performance measurement targets. • EDCO will provide sub grants to private businesses for the purpose of job creation and retention. These grants will be structured such that job creation, retention and leveraging targets can be met. • Grants will focus on traded sector industries, manufacturers, and key regional economic clusters. • EDCO and the Community Investment Board will agree to the ratio of funds targeted toward recruitment projects versus retention projects. EDCO will invest no Regional Investment Funds in retention projects without first ascertaining that all other opportunities for loan and grant capital have been exhausted. Central Oregon Comprehensive Economic Development Strategy Page 19 Regional Investment Strategy Throughout the term of the contract, EDCO will regularly canvass the Central Oregon Chambers of Commerce, Central Oregon Intergovernmental Council, Oregon Economic and Community Development Department, Central Oregon Visitors Association and other entities involved in regional economic development to identify businesses that may be candidates for Regional Investment Funds. In making investment decisions, EDCO will attempt to distribute investment among communities and counties located in Crook, Deschutes and Jefferson Counties. EDCO will give priority to 1) communities where investments of Regional or Rural Investment funds have not yet been made; and 2) the most rural and distressed communities of the region as indicated by the Oregon Economic and Community Development Department Rural and Distressed Community index. EDCO will report quarterly to the Community Investment Board regarding investments and outcomes. Business Development Opportunity Fund sub grants will be made to private sector businesses located within Crook, Deschutes or Jefferson Counties. Regional and Rural Investment dollars will fund the following private business sub -grantee activities: • Facility construction costs • Fixed asset equipment purchase • Marketing • Business relocation costs • Statutorily permissible personnel costs General industry cluster targets for the Business Development Opportunity Fund include: • Aerospace/Aviation • High Technology (includes software, hardware and biotechnology) • Recreational Equipment Manufacturing • Secondary Wood Products • Headquarter Firms • Light Industrial and Manufacturing (Plastics, printing, misc.) • Research and Development Firms • Renewable/Sustainable Energy Immediate Opportunity Fund: In lieu of a one-time call for projects with a competitive application process, the Community Investment Board will make available the remainder of Regional Investment Program funds on an Immediate Opportunity basis, to fund job creation and retention projects and activities proposed and/or supported by Central Oregon cities, counties and the Confederated Tribes of Warm Springs. Following are components of the Immediate Opportunity fund: • The Community Investment Board will accept project applications from jurisdictions and organizations at any time throughout the biennium, until such time that all Regional Investment funds are committed. • The Community Investment Board will fund projects that address the overall regional long-term and short term priorities, as identified in the Central Oregon Community Investment Strategy (Section 7). • The Community Investment Board will make funding decisions on a quarterly basis. • Projects will contribute to regional job creation and/or retention, and will leverage local, state and federal funds. • The Board will utilize the statewide Infrastructure Needs Inventory and Needs and Issues Inventory process when evaluating project applications. Immediate Opportunity Fund projects types include, but are not limited to: • Public infrastructure in support of job creation or retention projects • Community facilities • Planning or regional problem solving projects in support of economic development, cluster planning The regional priority list derived from the Infrastructure Needs Inventory will be amended into this plan to demonstrate high priority Immediate Opportunity Fund projects. 7. Rural Action Plan and Rural Set -Aside The Central Oregon Community Investment Board will allocate a portion of Regional Investment Funds are targeted toward rural areas of the region. "Rural' is defined by the Board as Crook and Jefferson counties in their entirety, Central Oregon Comprehensive Economic Development Strategy Page 20 Regional Investment Strategy and Deschutes County outside of the urban growth boundary of Bend. The Board will ensure rural communities are notified of the availability of Regional Investment Funding, and will monitor project awards to ensure that rural communities are adequately served by this program. The Strategy will be focused on benefiting distressed communities in Central Oregon. 2006 distressed areas and associated index values OECDD County Index Economic Status Crook County 0.85 Distressed Jefferson County 0.82 Distressed The Central Oregon Community Investment Board will support projects and activities targeted specifically to rural communities, including: • Business development projects that lead to job creation and retention. COCIB recognizes that while rural job creation project typically result in less net job gain than in urban areas, the projects are extremely valuable to rural distressed communities. Specific effort will be made to invest in rural community job creation projects. • Infrastructure development, community facility development. Through the infrastructure needs inventory, priority rural projects will be identified and supported. COCIB recognizes that while populations are lower in rural areas and resources are limited, infrastructure and facility costs can be equal to costs in urban areas. Additional support of these communities is needed. Specific projects will be identified through infrastructure inventory. • Technical support and assistance. Rural communities often lack the capacity to identify and secure funding for critical projects. COCIB, COIC and EDCO provide support and assistance to rural and distressed communities. • Specific focus on economic clusters critical to rural communities, including secondary wood products, travel/tourism, renewable energy, corrections/prison industry, agriculture, natural resources, and manufacturing. • Marketing of low-cost, available industrial and job creating properties. COIC will outreach to rural communities to identify appropriate Immediate Opportunity Fund projects. Outreach will include the cities of Culver, La Pine, Madras, Metolius, Prineville, Redmond and Sisters; Crook, Deschutes and Jefferson counties; and the Confederated Tribes of Warm Springs. Upon the availability of Regional Investment Funding, each of the cities will receive information and application materials. Economic Development for Central Oregon will conduct outreach to rural communities to identify appropriate Business Development Opportunity Fund recipients. Outreach by EDCO will include Chambers of Commerce, Central Oregon Intergovernmental Council, Oregon Economic and Community Development Department, Central Oregon Visitors Association, Prineville/Crook County Economic Development, Redmond Economic Development, and other entities involved in regional economic development to identify businesses in rural areas that may be candidates for Regional Investment Funds. COCIB will earmark a minimum of 50% of Regional Investment funds toward projects benefiting rural areas. Assuming that the Central Oregon Community Investment Board receives an allocation of Regional Investment Funds for the 2007-2009 that is the same as the past biennium, then the minimum amount of the rural set-aside will equal $233,950. . 8. Barriers to Implementation A detailed summary of regional weaknesses and threats is included in Strategy Section 4. This summary includes many broad regional challenges, such as affordability of land, energy costs, workforce availability, distance from markets, and other factors. Beyond these issues, several regional challenges have become barriers to implementation of the Central Oregon Community Investment Strategy: 1) Decreasing state and local government budgets resulting in a lack of public funding for high priority economic development projects. 2) Increasing stresses upon the region's infrastructure and housing costs as a result of rapid population growth. Central Oregon Comprehensive Economic Development Strategy Page 21 Regional Investment Strategy 3) Decreasing (and potentially eliminated) Regional Investment Program grant resources. The de -funding of this program would effectively eliminate the Board's ability to leverage resources to address regional priorities. The Community Investment Board's means to overcome these barriers include: • funding projects that support the Community Investment Strategy long-term and short-term priorities; • funding projects that leverage private and public sector investment; • funding high priority projects as identified by cities, counties, and the tribe; and • funding projects that lead to job creation or retention as a means of building the employment base of the region 9. Plan for Involvement of Disadvantaged and Minority Groups The Central Oregon Community Investment Board will involve the disadvantaged, minority groups, and rural areas in all stages of Strategy development and implementation. Notice of the public meeting prior to the adoption of the Regional Investment Strategy will be sent to the list of disadvantaged and minority group representatives. When the Central Oregon Community Investment Board initiates the implementation of its regional Strategy by advertising for applications, it will again notify the disadvantaged and minority groups, and the cities, counties, tribes, special districts, and non-profit organizations related to economic and community development through a direct mailing. Following is a list of organizations contacted directly: The Disadvantaged AARP Alyce Hatch Center ARC of Central Oregon Bend Area Habitat for Humanity Bend Community Center Bethlehem Inn Homeless Shelter Bos and Girls Club Bridges to Hope Ministry CASA of Central Oregon Central Oregon Battering and Rape Alliance Central Oregon Council on Aging Central Oregon Intergovernmental Council Central Oregon Resources for Independent Living Central Oregon Partnership Central Oregon Family Resource Center Central Oregon Veteran's Outreach Crook County Family Resource Center Crooked River Ranch Senior Group Deschutes County Commission on Children and Families Crook County Commission on Children and Families Jefferson County Commission on Children and Families Deschutes County Healthy Beginnings Early Intervention Grandma's House of Central Oregon Haven House Healthy Start J Bar J Youth Services KIDS Center La Pine Senior Citizens Inc. Lutheran Family Services Neighbor Impact Opportunity Foundation of Central Oregon Ochoco Community Clinic/Ochoco Health Systems Prineville Senior Center United Senior Citizens of Bend Redmond Council for Senior Citizens Residential Assistance Prog. Salvation Army Soro timists Int'I Senior Citizens of Jefferson Cou_nty Sisters Senior Council Society of St. Vincent DePaul Minority Groups Confederated Tribes of Warm Srins HAABLA Human Dignity Coalition Latino Community Association Rural Areas Cities Confederated Tribes of Warm Springs Special Districts Counties Economic Development Organizations COCIB will also issue news releases announcing the availability of grant funds. These news releases will be sent to the following media organizations: The Bulletin, The Madras Pioneer, The Central Oregonian, The Redmond Spokesman, The Nugget Newspaper, Cascade Business News, Frontier Advertising, and The Spilyay Tymoo. Central Oregon Comprehensive Economic Development Strategy Page 22 Regional Investment Strategy All COCIB meetings are public meetings, with notice sent to media outlets. COCIB's elected officials represent all constituencies within their jurisdictions, including minority and disadvantaged groups. Five groups within the region require special attention. Seniors, disabled, Hispanics, Native Americans (Jefferson County), and citizens living below the poverty line may be affected by economic and community development activities. po ulat�on , - Crciok, Deschutes :lefferson n.,m Tctal.Re iona 200b ,. Total 19,182 115,367 19,009 153,558 Senior 65+ 2,818 14.6% 15,089 13% 2,363 12.4% 20,270 13.26/6— 3.2%Disabled Disabled 4,085 21.2% 18,454 15.9% 3,496 18.3% 26,035 16.9% Hispanic 1,082 5.6% 4,304 3.7% 3,372 17.7% 8,758 5.7% Native American 250 1.3% 956 0.8% 2,981 15.6% 4,097 2.6% Poverty 2,357 12% 1 11,561 1 9.6% 1 2,692 1 13.9% 1 16,610 10.8% 2006 distressed areaslarid associated index values OECDD County Index Economic Status Crook County 0.85 Distressed Jefferson County 0.82 Distressed Additionally, there is a significant migrant farm worker population in Jefferson County. This population supports the agricultural industry, which is primary industry in Jefferson County. 10. Special Uses of Funds A portion of the Regional Investment funds will be used for activities and projects that assist individual private businesses in acquiring assets such as land, buildings, machinery and equipment through Business Development Opportunity Fund sub grants. Grants for fixed asset acquisitions will not displace existing private or public sources of funding for these acquisitions. Eligible Activities – Activities eligible to receive grant funds include: acquisition of fixed assets (land, plant, equipment or other tangible asset that has a useful life lasting longer than twelve months, and is normally subject to depreciation for income tax purposes), training, and marketing. Grant funds may be used to strengthen the equity position of the business allowing the project to be financed where it would not otherwise be eligible for loan funds or gap financing. Ineligible Activities – Grant funds cannot be used for the following: • Assistance in excess of what is needed to accomplish the purpose of the project. • Distribution or payment to the owner, shareholders, or beneficiaries or members of their families when such persons will retain any portion of equity in the project or business. • The transfer of ownership unless the grant will keep the business from closing, or prevent the loss of employment opportunities in the area, or provide expanded job opportunities. • For the purpose of refinancing or restructuring existing debt. • Displacing existing private or public sources of funding. Priorities – The following criteria will be considered when determining grant recipients: • Degree to which the project addresses regional long-term and short-term priorities. • Number of full time jobs that will be created or retained through the project. • Dollars invested per job created or retained. • Funds leveraged. • Project readiness. If selected as a finalist for grant funding, private business applicants may also be requested to provide additional information as requested by COIC such as: personal financial statements, personal income tax returns, a resume, business tax returns for the subject business and all affiliate businesses, and income statements, cash flow statements and balance sheets for the subject business. If requested, this information will be considered ' Source: US Census, 2000 Central Oregon Comprehensive Economic Development Strategy Page 23 Regional Investment Strategy confidential and will be used to perform a financial analysis. The financial analysis must show that the company is viable but cannot reasonably assume more debt. The Business Development Opportunity Fund project will exercise reasonable prudence and caution in investment of Regional/Rural Investment funds, including but not limited to due diligence, "clawback" clauses and security interest in capital investment where appropriate. The Community Investment Board will not provide loan funds through the Business Development Opportunity Fund 11. Management Plan The Central Oregon Community Investment Board will periodically submit performance reports in a form prescribed by the Economic and Community Development Department for the Regional Investment Program, to the county governing bodies in the region, the Oregon Economic and Community Development Commission, the Governor and the Legislature. Section 1. Administrative Agent Crook, Deschutes and Jefferson counties have entered into an agreement with the Central Oregon Intergovernmental Council for the fiscal and administrative management of the Central Oregon Regional Investment and Rural Investment Fund programs. The Central Oregon Intergovernmental Council (COIC) is a government entity organized under ORS 190. COIC is a state -sanctioned Council of Governments, and since 1972 has been one of the few organizations in the region that involves all three counties and seven cities in policy-making, program planning and service delivery. COIC is governed by a 15 -member Board, with representatives from each of the member governments: the counties of Crook, Deschutes and Jefferson, and the cities of Bend, Culver, Madras, Metolius, Prineville, Redmond and Sisters. Five members representing the interests of business, tourism, agriculture, wood products, and the unemployed/underemployed are also on the COIC Board. From 1993 to 2007, COIC was the fiscal and administrative agent for the Central Oregon Regional Strategies Board and the Central Oregon Community Investment Board. In the upcoming biennium, as was the case this past biennium, the majority of the staffing services provided to the Central Oregon Community Investment Board by COIC will be undertaken by the Program Administrator for Economic Development and the Program Assistant for Economic Development. The following COIC staff will also provide some level of services to the Central Oregon Community Investment Board: Executive Director, Fiscal/Administrative Manager, Staff Accountant, Accounting Clerk, Community Relations Coordinator, Computer Technician, and additional administrative staff as needed. COIC will receive all Regional Investment funds and maintain discrete accounting records for expenditures and cash balances as required by the State. COIC will develop project contracts for all projects awarded grant funds by the Community Investment Board. COIC staff will track project progress, submit regular progress reports to the Community Investment Board, and will enforce terms and conditions of the grant awards. COIC will arrange facilities, provide appropriate notice under the Public Meetings Law, prepare agendas and other supplemental meeting materials, and record the minutes of all public meetings. Additionally, COIC will file, retain, dispose of, or allow inspection of public records as required by State of Oregon Public Records Law (see appendix E — COIC Internal Control Policy and Procedures). Section 2. Application Process The Central Oregon Community Investment Board will address Strategy priorities through a two-pronged approach. The application process for these two approaches is as follows: Business Development Opportunity Fund: The Central Oregon Community Investment Board will contract with Economic Development for Central Oregon (EDCO) to identify business recruitment and retention projects that lead to job creation and/or retention. Throughout the term of the Business Development Opportunity Fund contract, EDCO will regularly canvass the Central Oregon Chambers of Commerce, Central Oregon Intergovernmental Council, Oregon Economic and Community Development Department, Central Oregon city and county governments, and other entities involved in regional economic development to identify businesses that may be candidates for Regional Investment Funds. EDCO will develop and utilize a specialized project application form Central Oregon Comprehensive Economic Development Strategy Page 24 Regional Investment Strategy EDCO will not select businesses for the Business Development Opportunity Fund that result in the relocation of a business facility within Oregon from one labor market area to another, unless the job losses in the originating labor market area are less than or equal to 0.1 percent of the most recently available estimate for the civilian labor force therein, or unless the relocation entails an improvement in the quality and a significant increase in the size of the business' total in-state employment, without being detrimental to any rural area, subject to determinations by the State of Oregon Economic and Community Development Department. Immediate Opportunity Fund: The Central Oregon Community Investment Board will advertise the availability of Regional Investment funds through the Immediate Opportunity Fund by issuing news releases, and through direct mailings to cities, counties, tribes, special districts, and non-profit organizations related to economic development. The Board will make Immediate Opportunity Grants only to city or county sponsored projects, and will accept project applications at any time throughout the biennium, until such time that all Regional and Rural Investment funds are committed. The Community Investment Board will make Immediate Opportunity funding decisions on a quarterly basis. Applicants will be asked to address the overall regional priorities identified in the Central Oregon Community Investment Strategy, and to identify levels of job creation, retention, and funds leveraged. Applications will be reviewed by COIC for completeness, accuracy, and compliance with the minimum program requirements related to job creation and funds leveraged. Any applicants that do not succeed in passing this review will be notified and given an opportunity to correct the application. All applications that pass final staff review will be forwarded to the Central Oregon Community Investment Board. Applicants that do not pass final staff review may appeal the staff decision to the Executive Committee of the Central Oregon Community Investment Board. The decision of the Executive Committee on the appeal is final. Project Selection Criteria Business Development Opportunity Fund and Immediate Opportunity Fund applications will be evaluated based upon the criteria established below: • Extent to which the project addresses the regional long-term and short-term priorities established by the Board in the Central Oregon Community Investment Strategy (see Section 7), including job creation and retention. • Extent to which the project is ready -to -proceed • Extent to which the project will leverage additional matching funds • Extent to which the project is feasible in the short- and long -run • Extent to which the project cannot secure funding from other financing sources • Extent to which the outcome of the project can be measured • Track record of applicant • Request does not include ineligible costs - Grant funds cannot be used for: debt retirement; reimbursement of expenses incurred prior to grant award; or the relocation of a facility from one labor market area within the state to another if not accompanied by an expansion of the applicant's business or employment. Other Review Criteria Specific to the Regional Investment Fund: Extent to which the project addresses at least one of the following objectives of the Regional Investment Fund: (a) the support of communities and populations that have been left out of Oregon's economic expansion and diversification; (b) the assistance of companies that are starting up or already in business in Oregon to compete globally; (c) the reinforcement of Oregon's long-term economic prosperity and livability; and (d) the coordination of regional efforts for economic and community development, education, workforce development, natural resource management, and other civic activities Regional Investment Funds will not substitute for available budgeted resources in supporting ongoing public services or infrastructure that already exist, but rather will support only new or enhanced services. The funds will not maintain existing staff of a public or private entity, except staff time dedicated to the administrative needs of the Strategy or Central Oregon Community Investment Board; or redirected or augmented efforts consistent with the strategy such as new technical assistance for enhancing regional coordination or local economic development activities/capacity. central Oregon Comprehensive Economic Development Strategy Page 25 Regional Investment Strategy The funds will not be used to fulfill objectives or activities of the Strategy as initiated in a previous biennium. The funds will not be used to assist with the relocation of a business facility within the state from one labor market to another, unless the hob losses in the originating labor market are less than or equal to 0.1 percent of the most recently available estimate for the civilian workforce therein; or the relocation entails an improvement to the quality and a significant increase in the size of the business's total in-state employment without being detrimental to any rural area, subject to determination by OECDD. Section 3. Project monitoring and disbursements Regional Investment Fund grant dollars will be distributed to Recipients based on the submission of one or more grant draw down requests by the Recipient, and approval of those requests by COIC. Grant funds will be distributed on a reimbursement basis for eligible project expenses that are consistent with the project budget and are incurred during the project period. Source documentation must be submitted for all grant expenses, as outlined below: A. All grant draw requests must include source documentation for the full amount of funds requested. This documentation shall include one or more of the following: 1. Invoices, with corresponding cancelled check copy or check number; 2. Receipts for purchases; 3. Credit card statements that clearly delineate purchases, with corresponding cancelled check copy or check number; 4. Payroll or time and attendance records that clearly demonstrate employee wages and hours; and 5. Other sources that meet the requirements of sections B and C below, and are deemed sufficient by COIC. B. These documents must permit the tracing of funds to a level of expenditure adequate to establish that the uses of grant funds are consistent with the approved grant budget as stated within the grant award contract, and that grant funds have not been used in violation of the restrictions and prohibitions of the grant award contract. C. These documents must be sufficient to facilitate an effective audit. Record Retention: The Recipient must maintain proper books of account and records related to the receipt and expenditure of grant funds in accordance with Generally Accepted Accounting Principles. The books of account and records must be maintained in sufficient detail to verify how the grant funds were expended or utilized. The books of account and records shall include receipts and invoices, as appropriate. The Recipient shall retain and keep accessible the books of account and records for a minimum of three years following the grant ending date; provided, however, that if there is any audit issue, dispute, claim or litigation relating to this grant funds, the Recipient shall retain and keep accessible the books of account and records until the audit issue, dispute, claim or litigation has been finally concluded or resolved. Central Oregon Community Investment Board Monitoring COIC provides financial to the Board no less often than quarterly. Status reports on projects are also provided to the board no less often than quarterly. The grant contract template is approved by legal counsel. Analyzing, processing and reporting financial transactions are conducted in accordance with GAAP. 12. Evaluation Plan Following are the Central Oregon Community Investment Board's adopted 2007-2013 regional benchmarks and performance measures: Job Creation and Retention: The Central Oregon Community Investment Board will create or retain a minimum of 1 job for every $5,000 of funding available within the Regional Investment program, including interest earnings. Of the jobs created or retained, 80% will be short-term job creation, 20% will be long-term job creation. A majority of the jobs created or retained will be at or above the county average wage. Leverage: The Central Oregon Community Investment Board will leverage a minimum of $5 for every $1 of funding available within the Regional and Rural Investment programs, including interest earnings. Of the private and public sector funds leveraged, 80% will be short-term investments, and 20% will be long -term investments. Central Oregon Comprehensive Economic Development Strategy Page 26 Regional Investment Strategy Other measures: Number of community capital projects assisted for construction (infrastructure and community development). Assuming that the Central Oregon Community Investment Board receives an allocation of Regional Investment Funds for the 2007-2009 that is the same as the past biennium, then the performance targets are as follows: ' Outcome#:j Yt,�, Jobs Created or Retained, Short -Term :Tar et = 83 Jobs Jobs Created or Retained, Long Term 21 Jobs Funds Leveraged, Short -Term $2,079,544 Funds Leveraged, Long -Term $519,886 Average Wage, Jobs Created or Retained $15.85 Amount of Personal Income Tax generated by the Board's investment in jobs(per ear $195,547 Number of Community Capital Projects Assisted 9 Sources of Data: Project reports, OED data Data on performance outcomes will be gathered over the six-year period beginning 7/1/07. Outcomes will be reported every six months. The Central Oregon Intergovernmental Council will monitor and evaluate the Strategy's effectiveness and efficiency by collecting job creation, retention and leverage reports from projects funded by Regional and Rural Investment Funds. These reports will be summarized and regularly presented to the Community Investment Board and the State. 13. First -Source Hiring Agreements for Benefited Businesses The Central Oregon Community Investment Board does not require firms receiving benefit from Regional Investment Funds to enter into a first -source hiring agreement with publicly -funded training providers. Appendix A — Data Analysis Appendix B — Central Oregon Community Investment Board Bylaws Appendix C — COIC Financial Audit Results Appendix D - Public Hearing/Notice Schedule Central Oregon Comprehensive Economic Development Strategy Page 27 Regional Investment Strategy Appendix A - Central Oregon Data Profile Section 1: Demographics Central Oregon's population growth rate has outpaced the state as a whole by a wide margin since 2000. Only ten Oregon counties grew faster than the state average between 2000 and 2006 - including all three Central Oregon counties. A fundamental component of the region's rapid population growth is in -migration related to quality of life, as Central Oregon is increasingly seen as a retirement location and recreation destination. Population forecasts predict continued high rates of growth over the next 25 years. 1.1 Population Information ;Crook County Dechutes County Jefferson` County .�� Oregon Population Madras_ 3,443 Matotiva 450 - �_w _00-7 _Region _ td,111 5,355 7 165 708 X4,95$ 13,676 102.45 2,$42,321 ^' 15,300 7358 13,481 2004 _ ___. _ �� 65,210�� 117,000 3,038,000 1998 16,650 2QQ5 X8614,900 144,900 17,4,_0 `LL � _13'8_.9_60__' _ 3,267,550 , 2000 �- 19,18219 75,290 1,160 009_- 153,568 m� 3,421 399 2002 2_,200 126,500 19 $50 m - 166,550 3,504,700 T 2004 �� 20 650 ��_ 135,450 20 250 �� 176 350 v 3,582,600 2445 22,755 20,6____ 186,845 _ 2006W'24,525 _ _143,494" _ 152 615_ __J___ 21 410 i 198,5_50 3,690,505 T Spurca, Portland it.. UnWlraity CeMor for Population Research �. - T^p�} Annual Population Growth Rate Population Change 1890-2600 5,071. 40,40,9_7 5,333 50,813 579,078 Annual Growth Rate 1990-2000 3.6°/a 5.40% 3.9%-f- Populatlon Change 2000.2005 s 3 573 28,123 1,591 33,287 210,041 Annual Growth Rate 2000-2005 _. �m _ ___ w Source. U.S, Ce -U8, Portlatd State URWe slty Center far POpWatio t Research, '. 1.2 City Pooulstions 1990 Bend 20,447 Gu1vaY 570 Madras_ 3,443 Matotiva 450 -: Prineville ' Redmond'" Sisters, u - _00-7 52.Q99 --_` 5,355 7 165 708 2 � Bp2 � S;g76.� ' 725W` 7358 13,481 2004 _ ___. _ �� 65,210�� 850 5,430_ 790 8,640 18,100 1 490 2QQ5 7_330 1,420 5590 805 '. 9,480 20,Q74 1,705 2006 75,290 1,160 6,076 830 9,990 f " 23,500 `. 1,745 Source. Portlen°Stete Unlverelty Cenler for Populat lonRnearch 1�" _ Table 1.3 below provides population growth projections created by the Oregon Office of Economic Analysis. These projections were last updated in April of 2004. At the same time, ORS 195.036 requires most counties to coordinate the process for establishing and maintaining population forecasts for all local jurisdictions within its boundaries. These forecasts must be ultimately acknowledged by the Oregon Department of Land Conservation and Development as the basis for long-range land use planning for the county and for each of its cities. Table 1.4 provides the coordinated population growth projections for Deschutes County. These projections assumed a higher annual growth rate over the first ten years, tapering down to match OEA's rates during the out -years. Given the continued rapid population growth in the region, the local coordinated population growth estimates are viewed as a more accurate projection of future regional growth. Central Oregon Comprehensive Economic Development Strategy Page 28 Appendix A acast of Population (0E on 2003 population estimates W6,418 24,079 1 227,746 4,095, 197,150 1.64% 26,065 250;805 4359, 214,479-----r _ 28,29272902 81242��- 4,626, 229,933 30,861 293,560 4,891 244,069 -[ 33,390 __T_313 .028�� 5.154. Projected Annual Growth Rate I 2005-2010' 2010-2015 m 1.82% LULU-LULb 1.76% __i 1.68% 2025 2030:` 1,70%1.39°k 2030-2035 1.62% 1.19% 2035-2040' 7.1 1.61?k_ 1.04% Source: Oregon Office of Economic Analysis, Long -Term County Forecast, 2004 1.65% i 1.27% 1.59% 1.25%' 1.64% _ 2010 2015 1.7rv1% 2025 1 s11 eds 1.59% RZSo 81242��- 1.05% 100,646 109,389 RedmondlUrban Growth 1.4 Forecast of Population Change (Local Coordinated Forecast) 2005 _ 2010 2015 2020 2025 Bend Urban Growth Boundary 69,004W 81242��- 91,158 100,646 109,389 RedmondlUrban Growth Boundary `.� -19249 23,897 : 29,607 36,851 46,724 ` Sisters Urban Growth Boundary 1,768 2306 2., 94 3,166 3,747 Non-Urban`County 53,032 59,127 65,924 73,562 61,961 County Total 143,053 166572-189,443 214,145 240,811 Source: Deschutes County Geordinated Population Forecast - Table 1.5 provides a summary of population changes related to race and ethnicity. Trends of interest include the relative increase in Hispanic populations, particularly in Jefferson County. The county's 7.2% increase from 1990 to 2000 outpaced the state and national growth rates for Hispanics of 4.1 % and 3.6% respectively. Central Oregon Comprehensive Economic Development Strategy Page 29 Appendix A 1.6 Race and Ethnlcltv 1990 Crook County Dsohutes County Jefferson County Region Oregon U.S. Total Population 14,1111 74958_ 13 676�102,745� 2,842,321 248,709,873 yyhfte 13,6 73,343 " 10,144�� ' 97,124' s 2,636,787 199,688,070 Black mm 11 85� 24 120 ( m 46,178 .._..� 29,986,060 AmericanhrdlanandAiaskaNative 221 848 -1.._.�. 2674 3,543 38,49E 1959,234 Asian or Pacific (Islander_ F 47 J 444 � 62 �, 553 69,269 7,273,662 Nlspan�a 388 1,448 3,382 112,707 22,364,069 Percent of Total Population 1.990 Wttite 'A 98.6% 97.8°h � 74.2°% 94,5°k ' 92.8% 80.396 _ Black 01% 0.1% 0.2%"" 0.1% 1.6% 121% American Indian and Alaska Nature i.6% 0.9% 0,8% - Asian or PacRic Islander ._� 0.394��^0-- Hispanic7---- 4 -0% 9:0% 2000 Crook County De chutes County Jefferson County LRegion Oregon J U.S. Tota{ pu(at[on 19,182 11S,36t 19,00@ 153,558 3,d2i,399 281,421,906 White_ 17,830 109,423m y---- 13,113 l 140,366 1 2,961,623 1 211,460,426 Black 8 222 50 280 55,662 34,658,190 AmericanlndianandAlaskaNative ,�� 958 _ V- 2,981 �4187� 45,211 2475,956 .250 Adan or Pacific Islandet' 88 934 99 11121 109,326 ---� 1,0824,304 roent 3 372u� 275,314 35 305 818 Pi of Total Population, 2000 Y �8,758� T While 93 0% 94 8 % T 69 0 % 91.4% -- BIBck X0.0% 0.2% 0.3%' 0.2% i 1:6% 12,3% �_ _. American Indian and Alaska Native 1 3% 0.8% _' mm 15 7 % 2 7 % 1 3 % 6.9% Asian or Pacii3c Islander 0.5% 0.8% 0.5°k� 0.7°6 S 3.8% Hispanic -T- 6.6% �3.7% _3.2% Change in Proportion; (%) of each Race Group 1990-2000 1Crook County De chutes County Jefferson County Region Oregon U S. 37% _ Black 0.0% 1% 0. _..._--.1-..-.-.._ �.._. ��...�._._.....1,,_._,. 0.1% 0.3% �.._._ 1..-_,.-.-,..-.., ._._!.._._...�. Arier�an Indian and Alaska Native' 0,3% 0.0%-3.9% 0.7% 0.0%- 0.1% A Asian or Pacific Islander 0 1 % /o 0.2% J_ 0 8% 0 9% ..._-. fiispattic-, ` 2.9% 1.7% 7.2%' 2.4% d.1%�'� 3.6% Source U. S. Cercus Bureau�� Table 1.6 provides an overview of age group population change from 1990 to 2000, based on US Census data. The fastest growing age group within Central Oregon from 1990 to 2000 was the 50-64 year old group, which grew by 3.4%, outpacing the state and national growth percentages for this age group (2.9% and 1.8%, respectively). Table 1.9 provides a more detailed breakdown of 60+ age group growth projections from 2005 to 2040. This data suggests that growth in senior populations will continue to outpace state averages. Table 1.8 shows median ages by community in Central Oregon (2005). This table suggests that there is significant age demographic variance between communities. La Pine has the highest median age (44.7), while Warm Springs has the lowest (23.7). Central Oregon Comprehensive Economic Development Strategy Page 30 Appendix A x1�x X;eX( xX�X{�X�Xa�yj i XEx!(� ac xXac X e .Y`; W l M �I�_�"N28G aoaM�N�� n N mp CiCd� �arv(} na 1p kro y a f I i E x`m �xX�CX !X IIbSN X `ex <y�!n R 4 R N ! IC O T11 IIIA N o�l�(H$cl k 990 xt!x xo�C': ae lbZ;:X x'p xX:RNa4X� ( : xX. XaRX((tx�. o'" ��. OI f. O r r YiS .D Ol �IQfj� N t 'Q . Q,!r wl N b r I O tr �El .,.IN lD {Y'N1NN 1111 {IN Ta�roa i; �(y�mas�lo �a pb � '�jX bEX �i,io xo, € xjMnrvlrxi.XwX� u t j # i.,p mmoyr�bt M O fG N 0 0�' = o g q c i.4 �,4N h V N M w f�� •-NN<. O I Ob VItO �m �i� _€I�: v>4Wr =Yj �a0 �'l fD �uf fOf GI h V O N O n N Ole,e m See ,�j 1 x X a��X °Y,�x a4E�ti IN ~Nr�ri mION^Nt IY�� 'Ifs j �N VY�1�lri Nb�lp 1, ci al Omi fY# ryry OOa ^f{{ �Yib N Gyp IO m -t-iOjN OI W -t � Ift�NI g 'Oil °�`� dmla }} q g o g� p( { w IS � v�i��3 voil"� 't�I t I=1 tom� i 0 U) w W h cm � �� CD �N N OD M 0 mu C C. 0 o`NW a> N m�> C9' M N m cc CL a: N c m E 0 E 0 C 0 0 W CD .y C d L L CL 0 U 0 co O x r C C N Q U¢ ae ag J ;§R s 'R e 's -.1! 1, I 04 NIA N C4! Ri 2 ;4 , lh9 111 V':'i N C; ix, 0 N,N A - 1 e sI — * . c ;�, tOffn g�, *0 _* (d ig OD i� 9 "i ig I, . !41 00 e�ata'ae�� 914 t1i oi 1 O. go O 1.- S 1 12 A 08 IN I 0 1� 19 'i of id:'& 6 C4 — R r,Oil S-1, WIINIM Ci mI ,4 V 0 VI w;co zNIO 10 vi N Im w C4 N V Nrr CS1 In f 0066 W 117 a moll M f0 NTM Im, N V V N IQ 21�, vt 0 QD wN C� =IV P't Ck C't V: 0 w m W_ 0 INI 9- .2 z C'i a 6 g 'o; c! 2 a - S 0 .1,It 'd C) L) vp 0 Bp L) r 0 0 12 OR a LO) 0 L) A Section 2: Income and Employment Crook County's per capita income (adjusted for inflation) ranked 30th out of Oregon's 36 counties in 2003, while Jefferson ranked 34th. Deschutes on the other hand ranked as the 5th highest per capita income in the state. Average wage was more consistent across counties, ranging from Jefferson County's $27,650 to Crook County's $30,779. These trends suggest that Deschutes County residents gain a higher percentage of their overall income from sources other than wages. This trend is clearer when median household incomes are analyzed. Deschutes County median household income levels for a family of four are roughly equivalent to the state as a whole, after lagging behind state averages by 10% in 2000. Meanwhile, Crook County's median household income remains 19% below state average, and Jefferson County falls 22% below state average. Overall per capita income and median family income are increasing in relation to state averages over the past five years. However, the gaps remain larger in Crook and Jefferson than in Deschutes. 2.1 Income and Workforce Crook County Deschutes County Jefferson County Region Oregon Average Annual Nonfarm Err►�lo_yment ` _ �- -� _�_ u 2001 6,120 53,230 6,150 _ � 65,500 _ 1,593,600 2002 � , 5980a 53,580 6,120 65,680 1 5?2 300 ; 2003 5,907 54,687 6,304 66,898 1,563,650 2004 6 310 58,487 6,488 71,285 1,59_5.6_83 2005 6,685 63,029 6,655 76,369 v 1,652,859 Source: Oregon Employment Departm nt _ Average Wage per Job 1995 ` $22,538 $21,572-� _ _$21,999 NIA_ $25,399 1997 $23,989 $22,882 $22,904 N/A $2_7,968 1999 $25,811 $26,352' - $24,587 �$25,250�� m N/A_ $30;340 2001 $26,880 $27,089 N/A $32,655 2003 $29,354 $29,198 _ $26,954 $28,§3 . $34,446 2004 $30,779 $30,080 $27,650 $29,921 $35,621 200b $31,664 ;`$31,492 $28,401 � ��$31,238 2006 $32,718 $33,329 $29,772 $32,987 _$36,591 $38,057 Source: Oregon Employment Departrnent Per Capita Personal Income 1998 $20,261 N%A $26,481 2001 $21,193 V$21,842 $27,805 $19,852 N/A $28,507 2003 $28,616' _-x- $21,406 N/A $29,161 2004 $22,719 $29,853 $22,735 N/A _ $30,561 Source; US Bureau of Econor is Analysis, REIS Median Household Income (Family of 4) 2U00 v _ _ ...�_ _ $34,400 $41,6_00- $35900 ,- N/A -- $46,000 2001 _ $3_4,700 w - $44,200 . _ $36,500 M N/A _.__.. - $47,800 2002 $35,300 _ _ _ $45,000 $36,700 N/A $48,900 2003 $45,100 $54,200 $43,800 N/A $56,300 2004 $ 900 $57,800 $45,200, NIA $58,600 2005 $48,050 $57,8- $46,000 N/A $58,600 Source: 2005 Central Oregon Area Profiile, Emnom(c Development ror Cantral Oregon The average hourly wage in Crook County in 2004 was $14.79; in Deschutes County the average wage was $14.46; and in Jefferson the average hourly wage was $13.29. According to the "Northwest Job Gap Study: Living Wage Jobs in the Economy", the living wage for a two-parent household in Oregon is $14.36 per hour, assuming both parents work full time. A total of 48% of Oregon jobs pay at or above this hourly wage. Table 2.2 provides information on income inequality in Oregon's counties. Overall, the inequality gap grew during the 1990s. Oregon ranked first nationally in the growth of the gap between the richest fifth of families and middle-income families. Crook County ranks first in Oregon in income equality, with the top one percent collecting income that was nearly 30 times the average income of middle-income families. Average incomes among the highest income one percent in Crook County increased from $487,000 in 2000 to $783,000 in 2002, even after accounting for inflation. Central Oregon Comprehensive Economic Development Strategy Page 33 Appendix A Trends in Central Oregon unemployment rates have changed dramatically over the past three years. Historically, Central Oregon has experienced unemployment rates higher than state averages. This trend has in part been due to the region's dependence on cyclical and seasonal employment sectors, such as tourism, forest products, and construction. However, in 2004 the region's unemployment rate fell below the state average. Although Crook County's unemployment rate remained above the state average, the gap decreased to .8%, after a nearly 3% disparity in 2002. The trend continued into 2006, with monthly unemployment rates reaching 20 -year lows in each Central Oregon county. 2.3 Unemployment Rates Crook County j Dechutes County Jefferson County Oregon US 180- 6,8 5.4 6.3 5.4 5;& 1995 _': 7.99_. 6�_ 6.1 4.9 5.6�. 2000 T,2 5.4 5 5.1 s _ 1 200 _. 8.3 - 6.4� 6 a 6.4u� �4 1 '.7 2002 9' 2 7 6 6,9 7.6 _ 5.8 2004 _ ( 8.1 { 6.6 L 6.4 5 _ 2_905 _ 6,7 5.5 6. 2006 6 �_ 4.6 _ 5.7 January, 2007 7.6 5.6 7 7 _.n 6.0 ' 5.0 Source: Oregon Employment Department 2.4 Number of Private Nonfarm Businesses Crook, County Dechutes County _Jefferson County Region Oregon 2000 416 4,3431____2616_=_5,045 :_ -99,945 __. J _ 433 4,692 287 5,412 101,003 Source: US Census ..,_..-_ The self-employed do not get counted in nonfarm payroll employment because they do not work for a wage or salary for a business or organization. According to the U.S. Census, the number of self-employed workers in Central Oregon increased from 5,545 to 8,708 during the 1990-2000 timeframe. This represented an overall increase in the percent of workers self-employed - from 11.8 percent in 1990 to 12.1 percent. of workers in 2000. This trend is opposite of statewide trends in self employment. In 1990, 9.3 percent of Oregon's workers were self employed, declining to 8.9 percent in 2000. The counties of Central Oregon showed slightly varying trends. Both Crook and Deschutes counties saw their percentage of self-employed workers increase in 2000, and in both counties 12.4 percent of the workforce was self- employed. Jefferson County saw its share of self-employed workers drop over the two-year period, from 10.6 percent to 9.5 percent. Central Oregon Comprehensive Economic Development Strategy Page 34 Appendix A 2.5 Self -Employment as a percent of overall employment 00:", Crook Prineville 9.0% 9.2% Deschutes-� .9% 12.4%-� Bend 9.4% 10.5% _' Redmond 12.0% . 8.4% Sisters 14.1% 12.1°fo Jefferson 10.6% 9.5% Culver 6.9°l0 Madras 8.6% _ 5.5% �Metoliius `5.8°l0 6.6% _ Warm Springs _ _ — Region 11.8% 12.1°k Oregon 9.3% Source: USensas 2000,1986 6. _ ' _, —_ Table 2.7 provides an overview of regional occupation groups as a percent of regional employment. The largest sectors in terms of total employment are service, office and administrative support, and professional. The most significant trends in regional employment in terms of comparison to statewide occupational percentages are the higher percentage of service and construction jobs, and the lower percentage of office/administrative and professional jobs. Central Oregon Comprehensive Economic Development Strategy Page 35 Appendix A 12.70% 15.50% -2.80% 6.1U%o ^6.40% -0.30%v-- _ 17.700/6 $30,710 15.20% 308 >; 2.50% 1 LStI°lo $28,964 10.60%' _ 0.90°l0 15.50% $30 095 16.60% 1,658 -1.1_0% $60,420,921 $36,442 Information _ 26 0.41%0 6.80% $30 344�mm Financial) Activities' 135 2.14°% $3,627,214 $26,868 4.000/6 4.79% 010% 8.70% Educati& Health Services 7 90% 9.2910 0.80% 8.20% Leisure & Hospitality 7.60% 23% 0.60% 0 30% Other Services 0.70% 3.11°Io 0.40% 2.8 Covered Employment and Payroll per Industryj_ Crook.County, �^ 2004 Employment %of Employment Total Payroll Average Payr Natural Resources & Mining 255 4.04% $7,831,219 $30,710 Construction 308 >; 4.85%0 $8,863,232 $28,964 _ Mariufacturing1,209 _ 19.18% $36 386,029 $30 095 Trade, Transportation. & Utilities 1,658 26.30% $60,420,921 $36,442 Information _ 26 0.41%0 $788,953 $30 344�mm Financial) Activities' 135 2.14°% $3,627,214 $26,868 Professional & Business Services 302 ��_____ `on 4.79% $10 636,654 $35,220 Educati& Health Services 586 9.2910 $15,500,908_ $26,452 Leisure & Hospitality 4567 23% _ _ $5 029,852 $11,030 Other Services 196 3.11°Io $2,857,31;1 _____ $14_,578 Total All Government 1,176 18.65% $42 169,802 $35,858 t"ota% 6,305 100.00% $194,112;05 $3078 ,7 Deschutes County 12004 Employment %of Employment Total Payroll 1_ Average Pay Natural Resources & Mining 544 0.93% $1543,390 ,1 $27,837 Construction 5,626 9.62% $189 861,166 {{-- $33,747 Manufacturing 5,597 9.57%0 $187,559,874 $33,510 Trade, Transportation .& 11,642 19.91% - $324,182,265 $27 845 Information 1,538 2.63% $66,49$,947 $43,237 ' Financial Activities 3,260 5 58% $119,724,639 $36,725 Professional & Business Services 5,753 9.84% $175,375,793 _ $30,484 Education & Health Services 6,905 11.81% $250,006,5-2-4---j $36,206 leisure &Hospitality 8,487 14.52% $12_4,837,631 $14,709 Other Services 1,914 3.27% �_ _ $42 424,180 _ $22,165 Total All Government 7 199 12.31% $262,894,650 $36,518 Total 58,465 --j— 100.00% T $1,758,509,059 T $30,678 -- Jefferson County 2004 Employment %of Employment Total Payroll Average Pay Natural Resources & Mining 379 5.84% $7,727,045 20,387 Construction 113 1.74% $2,579,578 $22,828 _ Manufacturing 1,652 — 25.47% _ $53,68" 53 689,401 $32_499 T[ade Transportation& Utilits 818 12.61°10 $21,775,859 $26,620 m Information 20 0.31 % $469,921 $23 496 Financial Activities 116 1.79%0 $2,875,512 $24,788mm" Professional &Business Services 1-47----f---2.27%$3,575,236 $24,321 Education & Hearth Services T^ 202 3.11°10 $4,795,451 $23,739 T _ Leisure &Hospitality 459 7.08._v. _ % — $5,152,096 y T $11,224 Other Services 2.305167 _ $2,382,166 $15,987 - Total All Government 2,430 37.47%TyW $74 362,634v $30 661 Total 6,485 100.001 $179,384,899 $27,882.T _ Source: Oregon Employment Department _. Central Oregon Comprehensive Economic Development Strategy Page 36 Appendix A verage Wages Offered for Selected Occupation Central Driver, Heavy �- 515.43 I 17.33 Receptionist � $10.77 � $11.73 _ 2004 Employment 2014Employment TotalmJob Growth $11.87 _ Customer, Service Representative $12.31 _L$11.43 $13.94 $16.01 $15.75 Welders, Cutters, Solderers, & $14.i9 -T---$15.92 21,4% $17.57 $15.92 Computer and TTechnical -- 19.5% Qregon"lbtal 1,636,396 1,881,301 244,905 Network & Computer Systems_E 25.12 - _ $27.80 $30.14__=_!J32.4 -1 Computer Support Specialist 518.02_$23.13 $23.19 Database Administrators $28.89 $31.04 u $32.44 $33.53 Professional: . ._ Marketing Manager -$44 23 w �_�__ $42.89 . $55.37 $52 93 Sales Manager $34.85 $43.25 _ - - $49.09 $51.53 Industrial Production Managers $32.94 $38.12 $39.50 $41.39 General and Operations Manager $37:71 $44.14 $55.35: $51.22 'eureauof Labor Statistics, 2004 data ]_ '•Oregon Employment Department, 2005 data 2.10 Fastest Rates of Projected Job Growth by Region 2004-2014, All Occupations _ 2004 Employment 2014Employment TotalmJob Growth - Percentage Growth Central Oregon (Region 10) 72,598 _ 90--,-124--] - 17 526 Lower`Jol JohnDay �Regian 9), 54 ` 27,747 w- (Region 4,893 21,4% Jackson -Josephine (Region 8) 104,150 124,425 _ 20,275 -- 19.5% Qregon"lbtal 1,636,396 1,881,301 244,905 15.0°l°�� Source: Oregon Employment Department Table 2.11 provides a summary of occupational growth projections over the next decade. The top five growing occupations in terms of numbers of jobs added are generally lower -wage occupations (below county average wage). Central Oregon Comprehensive Economic Development Strategy Page 37 Appendix A 2.11 Top Performing Occupations, Regional Occupations with the Mast Jobs " 2004 2014-- Growth, 2004-2014. Retail Salesperson 2,756 3,721 2001' 35.0% _Waiters &Waitresses 1;571 2,236 _ $1.11 42,3°l0 Cashiers�� 1,448 1,874 . 29.4% Offfce Clerks, General 1,414 1,751 1.8961 �� 23J Ko Laborers and Freight, Stock, and Material Movers, Hand X1,372 1,551 Total $21.06 <: 13.0% Registered Nurses' 71,247 _ $13.74 o _ Combined Food Preparation and _ _ Serving Workers, Including Fast Food 1,204 1,519 26.2% Bookkeeping, Accounting and Clerks' Auditing -- f_- __ 1,135' 1,397 23.1% Truck Drivers, Heavy 8 Tractor- Trailer1,087 1,296 19.2% darpenters 948-1' " 1,182 24.7°, Customer Service Representative 911 1,366 49.9% Landscaping & Groundskeeping Workers :826 1,098 32.6% _ _ Maids & Housekeeping Cleaners 717 _ ___ 1,033N 44.1% �� Gooks, Restaurant 694 980 �_ 41.2-% Amusement 8 Recreation Attendants �-__ 239 _ 77.0% MedicalAssistants W �[-=4- 209 V23 318 ^" 52.2°l0 �. _ Bill &Account Collectors � ._ ___s___._. 185�_270------ 45.9% Hotel, Mote [,'and" Resort Desk Clerks 129 203' 57.4% Correctional Officers __. 62 328 _ 429.0% Aircraft Structure,,Surface's, Rigging; and Systems Assemblers 42 92 119.fl°lo ' Entertainment Attendants and Related Workers, All Other 52 80 53._8% Chemical Engineers - ". -49-171 44.9014 '- . Source: Oregon Employment Department _-:�-�� u�.»��... As table 2.12 illustrates, real estate valuations have climbed over the past five years. The most dramatic increases are within Deschutes County, where real estate values have increase 53% over that time period. 2.12 Real Estate Valuations by County, in $Billions 2004 - 200_3 �- � 2002 - 2001' 2000 Crook $1.46 $1.32 1 $1.22 $1.11 $1.04 Detosotes . $13.70 1. $118 Jefferson $2 00$ 1.8961 �� $1.7��7 $1. $1.52 Total $21.06 $19,10; $17.28 mow_ $16.4`2 $13.74 Source: Economic Development for Central Oregon . _. _ _ Section 3: Workforce Concerns Workforce concerns include areas of impact on Central Oregon's citizens, including poverty rates, commuting to work, housing affordability, child care availability, cost of living, and health care. a. Poverty Regional poverty rates have remained stable over the past ten years, decreasing slightly from 13.2% to 12% during that time period. The most significant poverty trend has been the 3% reduction in Jefferson County's poverty rate over the past ten years. The region has seen a drop of nearly 1 % in child poverty rates. Table 3.1 provides an overview of regional poverty rates. Central Oregon Comprehensive Economic Development Strategy Page 38 Appendix A 3.1 Poverty Rates, 1 Total Persons in Po, iaai 2,226 ( 11,3312,785 1 379,506 x35,573,858 2000 X2,357 11,561` �' 2,692 361,280 31,,581,086 2002 2,532 _1-1 2, E 0 9 T 2,828 396,157 34 569,951 2003 2,496 13,76! � 2,845 4 Y 423,918 35,661,170' Percent of Population in Poverty $120,430 $271,457$182,759 � ��____._.___ $358,066 $106,052 1993 10.9°l0 10.8% $226,238 17.4°fo 13.2% - 15.1% 1997 __mm 8% 12 F 10.6% J_ 16.6% 11.6% 13.3% 2000' - 12.0%- - 9.6%_ 23,3% 13;9°10 10.610 11.3% 2002 12.4% 10.0%� 14.5% _ _ 11.3 %�-12.1 ! $163,000 Y003_ _ 11.8°la. 10.3% 14;4°10_ 12.0°la 12.5°!0 Children Under 18 in Poverty�� $99,400 '� $183,500. $135,125 $247,070 $87,500 2003 1993 614 3,281 1,138 �� 146719 15,727,492 1997 854 __ 4,291 1,127 134,932 14,113,067 200011 876 4,008 1,264 127,544 11,587,11,8W 2002 791 4,162 69.2% 1,131� _ 127,481 12,132,645 ?003 919 4,673 23.0%0 771,278 147,433 12;865,806 Percent of Children Under 18 in Poverty _ f` _ 1993 14.0°!o 14.7% 23.5% 18.3% 22.7% 1997 T 18.60 15.9% � 23.09/o mm 16.3% 19.9% 2000 17.6°0 _ �13,$°fo 22.3°fo 15,1% 16.2% 2002 , - 16.0% 13.8%-_ _ _._ 20.2% 2003 18 4% 15`.2°Io -� 22.8% 17.4°✓0' 17.6% Poverty Statistics Source: US Census Bureau _ b. Housing Housing prices have increased dramatically in Central Oregon over the past five years. The greatest price increases were experienced in Deschutes County, where Redmond led the region with an average residential housing price increase of 81 %. Crook and Jefferson average prices increased steadily over the same period, but not as dramatically. Median housing prices varied throughout the region, with large supplies of higher -end housing in Bend and Sisters, and higher amounts of affordable housing in Crook and Jefferson counties. 3.2 Averaqe Residential Home Prices Crook Bend Redmond RV Sisters Jefferson 2000 $95,753 _ $197,682 $124,696 - 7 $,108 2(101 $106,524 $208,097_ $136;4$1' a_. _ -_ $249,994 $93,302 2002 _ $104,633 $225,866 $147 515 -----$-2750-0-9-1 $279,057 $90,818 2003 $111,434 $235,882__ $162;377 $317,400 $98,239 2004 $120,430 $271,457$182,759 � ��____._.___ $358,066 $106,052 '$154,906 -_ $334,570 $226,238 $449,979 $131,493 2006 $212,173 $406,122 $292,268 $514,259 $170,228 change 2000-2005 61.8% 69.2% -T- 81.4% 63.6% 44.3% °!a change,2004-2405_` _ 28.6°10 23,3% 23.8°!0 25.7% 24.0°!0 Median Home Prices 2000 $88,200 ! $163,000 $118,900': $232,0083,000 2001 -_r-$106,-000--.-I--$168,950 $125,000 -$235-,d-0-0j--t-8T,-000- 2602 $99,400 '� $183,500. $135,125 $247,070 $87,500 2003 $105,450 $195,000 $148,56$270,000$95,000 2004 $1L1_4,928 $227,500 $158;500 $308,500_ $104,000 2005 $149,275 $279,000 $198,818 $394,250 $133,500 2006 --change $195,500 $351,978 $262,749 $460,000 $165,080 °l8 2b-00-2005 69.2% 71.2°!067.27.2%` 69.9°fo' 80.8°!o °!o change 2004-2005 23.0%0 Source,.Certtral Orego n Reelto rs A ssociattor, Central Oregon Comprehensive Economic Development Strategy Page 39 Appendix A 3.3 Home Ownership Trends -Percent of Owner Occupied Housing Units 2006 2005 2004 1886 ° t980 - 1990.. 1890 t98L r 2040 2000• 2tl00 _ _ Prineville 3, o/ 10.61°/a 4ceupkdVnita Owner-OC°YPled' Pe[yentOwne'roccupied' "Occupied Ownitr= Pe -scent Oceupled Owner= Percent- isters0,00% w000 Oap"'., Units ,. Occupied Owner Units 'Occupied Owner Crook455�� La Pine N/A $ 813.00 $ �_ _ Occupied 3 897-71% 7,354 Occupied '. 5,464- Deseho#es 22,976 16,752': 28,217 71% 20.734 45 ,5 - 95 _ �74% 32,971 72% ^" Jefferson 3,935 2,653 67% 4 744 3,077 65% 6 727 4,797 77%%� 80.Tw scU,., eureeU oftno Canew,Cerowof Popwation arM Nepeinp USA C. -lee 1960 1990.W 2e00:U.8: aw. 1the Cenew Ce fP.pultllone wumV 2:551'�4W.. Table 3.3 demonstrates a slight increase regionally in the percentage of owner -occupied housing units from 1980 to 2000. 3.4 Central Oregon Rental Trends ( r Avetage 'Rental Vacancy'tWes 2006 2005 2004 en "0 '0 :54°o, Madras 4.90°/p 13.08°/p 6.58% _ _ Prineville 3, o/ 10.61°/a 7.85°la Redmond 7.60% 11.72% mm -9.74% - LL isters0,00% w000 Oap"'., Average Rent - three bedroom ho so _v Bend $ --� 965,00 $ 935.00 $� 928A0 La Pine N/A $ 813.00 $ �_ __ 761.00 _ _� r tiJladras%Culver $ 7 0 $ '', 650.00: $� _� 688,00 Prineville/Pow ell Butte $ 748.00 $� 673.00 $ � 724.00 Rednwnd/Terrebonne , $_ 991;00 $ ' '� 846.00:" $ '- 844.40 _ Sisters N/A $ 889.00 N/A Source�;Cenlral61 onlRai to[ Survey, Bretton Appraisal Group; Central Oregon Workforce Housing Needs Assessment, COR HA,2008 3.5 Fair Market Rent Amounts, Three Bedroom Unit 20054 _2004 2003 Croo�htke _.Aees$953 $895 $_.4.877 Jefferson__ _ $781 $716 $701 Source; US Deparment of housing and Urban Development 3.6 Houaina Needs -2003Y �, __ ,Oeeupied'Housinp Home Owrieah p 1.ow Income Households» Coati%Coat Over- '.UnI[s Unita Cackfng".Jobs -^ Units Rate Burdened Burdened. crowded Looking ": Kitchens ' Housing Households -: 'Units Plumbing '.9 Oap"'., 'x'2.3%` 1,765 22.2% 405 38 32 -431 Deschutes ;51,$14 - 15,$4. 1s�8" - 30.2% x.;658 203..- 288 2,653 :. Jefferson "' �" _ 696 ��8387 329 Regsln 88 Ot 20722 u 19,2"62- 2$.$% 2, 67 1 -` 324 407 2:551'�4W.. _ Band _ 24,503�� a 82.9% 7,919 ?,828 v 37.9% 799 132 267 ! ,,.8,390 Culver 272 72 8 % 89 - 65 _ 23.9%-�^ 41 _r�._.._. 2 I 125 Metolius �� 268 66.8%� 99 -� W' " 0�8 73�- 27.2%� 23 '-'�- 3 -24 " Prinev a ':. 3,273- mm 634%' 1,367 - . 871 -- 268^0 X61 0 0 "" . : 1,763 Redmond 6,497 60.6%" 2 704�i'"T-�� 33 ...._.i 2,118 �. 32 6% 71 �39�'� 1.,443 557 58.4%:. 208` ,275 -"� 25.1)% a$ 7 = 0_ _ 1,234 •Now h l penn°]0x rmore of their oma on eo 1 gere aonale see -C,,t Burdened' "`Tli. gap satwmm�umbuptlob. a_a eunRa of hd°.he CRs � s, Source: Central Oregon No uelrq Need. Upeele,Mucn 200J, Ce MW Oregon Reglon.l Newing Authority The Central Oregon Regional Housing Authority conducted a housing needs assessment in 2003. The assessment found that 28.8% of Central Oregon households are considered "cost burdened" - meaning households that spend over 30% of their income on housing (a measure used by housing agencies as well as mortgage lenders). The 'jobs - housing gap" column of table 3.6 refers to the gap between the number of jobs in a community and the number of housing units. A negative number suggests that there are more housing units than jobs. The wide variance in the gap amount suggests that there is a significant amount of commuting that takes place between communities. Central Oregon Comprehensive Economic Development Strategy Page 40 Appendix A Housing Works (formally Central Oregon Regional Housing Authority) completed the Central Oregon Workforce Housing Needs Assessment in July of 2006. The purpose of the study was to determine the ongoing housing needs in the region specific to the work force. The study's key findings2 included: • Home prices have been rising and are no longer affordable for most members of the workforce; • Growth in demand for workforce housing has been outpacing the production of units; • Employers are being negatively affected by problems that can be directly attributed to the insufficient availability of affordable workforce housing; • Growth in demand for workforce housing will continue yet will not be balanced with construction of affordably priced units given development now underway in the pipeline. Through a gap/demand analysis process, the report concluded that "by 2008 approximately 9,460 additional workforce housing units will be needed to address the deficit generated between 2000 and 2005, fill vacant jobs and sustain growth." Table 3.7 provides a summary of projected workforce housing needs. 3.7 Workforce Housing Demand by Area Median Income 2006 Source if Dania ld _ Grook v Deschutes Jefferson Region Workforce Deficit 2000-20Q 256 1,493 __= 404 827 Un filled Jobs, 2006 105 1,404,'-1,637' New Jobs, 2006-2008 489 5,359 717 Replacement of Retirees, 2r W 96 306 28 431 Total � _434 � 8,562 470 _ 9,460 _ Demand by Area Median Income 50°10 AMI 85 1,550_ 82 1,722 51% - 80% AMI (( 78 1,584 91 1,760 810/6 = 100b/o AMI 46 1,010 48 1,078, 101% - 120% A_WI__T 49 856 — 50 — 974 121+Xo ALAI _' 175,__ 3,570 19_8 r 3,935__ Total 434 8,571 470 ^9,469 6ource:GentratpregonYVorkfoiceHousfn9NeetlsAssessiineM,C4RKk20is '' c. Health Care Z Central Oregon Workforce Housing Needs Assessment, July 2006, Executive Summary, Page 1 Central Oregon Comprehensive Economic Development Strategy Page 41 Appendix A 3.10 Central Oregon Hospitals Community College Unduplicated Enrolim_ent 199.5-2005 COC YOtalHeadcount 3 %of Statewide Crook County Bend -La Pine Statfetl Bads 1986` Capacity and OOCYliAn6y � � � Staffetl Batls 200E ' %inamasa an Oeaapsnay, Occupancy %tnerease : St. Charles Medical Center, Bend 169�� 172 Capacity' � 1$86, .80%T 57.9% 200E In 85.5% 47.7%� Pioneer Merrroriai, Prinevtle 36 31 ^_1 -13.90% 38.7% 2t,6% 44.3% Mountain View Hospital, Madras 25:- 35 40% 23.7% 27.2% 14. 8°h7 t, arles Hospital, Redmond 47 ;-.1 5,835 OVA - 25:6% 38% 55:7% Inpatient I Inpatient Discharges 2007 % Increase In Outpatlent Outpatle nt % Increase Discharges 1996 Inpatient Visits 1898 Visits 200E IE in Patient Visits Discharges I Outpatient d. Education 3.11 Central Oregon K-12 Public School Enrollment Community College Unduplicated Enrolim_ent 199.5-2005 COC YOtalHeadcount 3 %of Statewide Crook County Bend -La Pine Redmond Jefferson Culver Oregon 2005=06 h 3,295 14,685 - 6,590 3,012 604 X559,215 Y604-05 3,166 144303 4.00% - 6,423 3,029594 552,320 2603-04 2001-02 3,207 13,940 ,�`� 6;159 _ '3,099 - 590 551,407 - 1;999-QO 3,202 12,779 � 5,835 3,042 535 545Q65 -u 1997-98 _ 3,026 12,111 4.80% 5,151 3,076 471 540,359 Source: So urce: Oregon Department of Community Colleges and Workforce Development 3.12 Central Oregon Community College Unduplicated Enrolim_ent 199.5-2005 COC YOtalHeadcount 3 %of Statewide Community College Enrollment 2004-05 14,107 4.0706 2003-04 ' 3,225' 4.00% 2002-03 16,471 _ 2001-02 17,046 2000 01 __ 16,732 � �-- 18,143 1997-98 16,856 4.80% - - 1995-96 -- 16,900 5.00% So urce: Oregon Department of Community Colleges and Workforce Development Central Oregon Community College _Pr�gon Community College Averag Public Four -Year Institutions Oregon State University University of Oregon Source: Western Inters tateCommisstonfor Hig ,584 $2,589 $2,925 13.0% 84.70/ ,467, ' $2,834 _ $2,996 5;7% _ 1 242% 312 _ $5 094 W $5,443 6:8% 64 3°fe 381 $5121 $5,193 1.4% 53.6% M of Community College and Workforce Development 3.14 Oregon's Rank for college tuition and fees am ong all western states 2000 2001 2002 '_ 2003 2004 3rd Highest - 3rd Highest 2nd Highest T- 2nd'Highest.._. Highest _... _ Source: Western Interstata Co mnussio n fo r Higher Education, Oregon Department of Conartunity College and Workforce Development Central Oregon Comprehensive Economic Development Strategy Page 42 Appendix A 3.15 High School Dropout Rate�-- to Oregon =' Croak County Bend•La Pine Redmond Jefferson Culver_ Oregon 2003-04 9.1�% 4.30/co 3.0% o- 83.2% 2002-tl3 __ Bachelordegree or higher,% of age 25+10.1°l0 Oregon - 2000 7__16,6_01/6_E:: �� 6,60% 2001-02 5.20/6 �_ 3.8% � � 1.6% � � �� 4.1 __V __ 23 '/o 1:999-00 4.3°l0 7.6°l0 7 3'.8°la6.6°k 6,3%, 6.3% 1997-98 2.6% 7.8% 3.5% 14.5% 5.2% 6.9% Sourest Oregon Departmerd of Education 13.7% 25.1 Source: U.S.Gensus 3.16 Educational Attainment _m _rte_ ,.. to Oregon 1990 6 to 10 min. Crook Deschutes Jefferson Oregon High school graduates, %of age 25+ 71.8%mm 83.2% 21.90% ._.� 73.9% 81 50 Bachelordegree or higher,% of age 25+10.1°l0 Oregon - 2000 7__16,6_01/6_E:: �� 6,60% 18.9°l0 29.80% 2000 _._ `H -25+- 4:20°10 Region - 2004 __V __ 23 '/o 19.00% �- mm h scho_ ol Higgraduates, % of age' _ 1�_�� 9.60% 11.50% 80.5% Ot'egon - 2004 '17.50% 14.70°l0 Bachelor degree or higher, % of age 25+ _ 12.6% 25.0% Source: Oregon Office 13.7% 25.1 Source: U.S.Gensus 3.17 Educational Attainment_- County Ranking County Name Bachelor or Bachelor or -Some High !, No high Benton v -1 47.4% 3 .4%0 15 4"/6- 6.9% Deschutes 7 25.0% 36.2%_ 27.2°10'' 11.6% Jefferson �mm39�13.70/. 31.1 %o ` 31.7%23 5%wYW brook 33 Morrow 36� 11.0% 31.1% 32.1 25.9% - 1 11 V_ % I Oregon _ 258 a 28.3°k': 14.9°1, So urea: Northwest AreaFo and alioo �1 �� ___.._.�� e. Transportation and Commuting Commuting rates have increased over the past 15 years for a variety of factors, including lower average housing costs in some communities and increasing employer concentration in Bend and Redmond. Table 3.18 indicates that average travel time for commuters in Central Oregon has increased over the past five years (53% of workers traveled 11 or more minutes to work in 2004, compared with 46.4% in 2000). However, the mean travel time to work remained lower in each Central Oregon county than the state as a whole (Table 3.19). 3.18 Average Travel Time to Work - Region compared to Oregon 5 m In. or less 6 to 10 min. 11 to 20 m_ in. ' 21 to 30 min. 31 or more Work at home Region - 2000mm25.60% 21.90% 14.50% 10:00% Oregon - 2000 7__16,6_01/6_E:: �� 6,60% T2170%�- 1'7.20% 29.80% mv4.70% 15.30°l, 15:30% 4:20°10 Region - 2004 __V __ 23 '/o 19.00% �- mm 31.90% _ 1�_�� 9.60% 11.50% 4.70%- Ot'egon - 2004 '17.50% 14.70°l0 32.50°1, _ 15.10°Jo < 15:70°l0 4.50°l0 Source: Oregon Office of Economic Analysis -Oregon Population Survey, 2004 and 2000 3.19 Mean Travel Time to Work by County- Measured in Minutes Crook Deschutes Jefferson Oregon O.S. 2000 18.7 -1-8-322.2 25 5 Source, US Census, 2000 , • • •� •..y•..• • • 1- .., r -1 ,•rte, cast 111 VVUI MVI O u avcnl ly n UI I I UI IG I UUI Ily W dF1UUltdl IUr WUrK TrUM I twu LO LUUU - wan ine increases being experienced in Crook and Jefferson counties (Table 3.20). Deschutes County has the highest percentage of their employees that reside within the county, and also imports more workers from the other counties. Jefferson County had the largest number of residents who commuted to another county for employment. Central Oregon Comprehensive Economic Development Strategy Page 43 Appendix A Another Gom m ui Share of County's Jobs Held by its Residents - 1990 a_nd 2000 1990 $4.90°l0 '` 94:20° 87.10% 2000_� 84.50% 93.20%__ 85.50% Source; Oregon Employment Department/US Census Table 3.21 provides a summary of employer survey data collected by Housing Works for the Central Oregon Workforce Housing Needs Assessment. The table summarizes where employees live and work by community. Although a limited sample, the results indicate that the community with the highest percentage of workers coming from other communities is Redmond, with only 52.9% of workers residing in Redmond. Madras trailed Redmond slightly in terms of importing workers (55.2% of Madras workforce lives in the community). Prineville had the highest percentage of workers who also lived in the community (84.4%). 0.3% Qui# of Employees Surveye� 2,337 192 ; 134 _ Source Employer Survey Central Oregon Workforce Housing f .. Assessment, CORHA, 2006 As Table 3.22 demonstrates, carpool rates in Central Oregon are higher than Oregon or US averages. 3.22 Carpool Rates - Workers 16 and Older Crook _ 'Deschutes Jefferson �' Oregon' U.S. ook —__ 1990 13 55% 12.60% 16.90% 12.76% 13 29% _ _ 2900 e 1$.00% � 13.10°!° _ 19.40°l° �. 12.20% , 12.20% Source: us Census, 2000 and 1990 J f. Cost of Living Central Oregon has seen some of the highest gasoline prices in the state over the past year (see table 3.25). Overall energy costs increasing, as pre-tax gasoline prices have nearly doubled since 2002, and residential natural gas rates have increased by 25% since 2003. Nationally, energy prices have experienced volatility over the past several years due to increasing demand and limits on capacity. 3.23 Natural Gas Cost Trends - Oregon Residential Rates 1997-2005 Gas Consumption byYea Res identiai''Rates (MMcf, per Year) (dollars per -1 000 cubic ft.) 1997 172,588 6.21 - 1998 216,058 6.81 7.13'--_ 2000 213,063 8.12 _ 2001 — 218,563 LL ''' _ _ 2002 193,006' _ mW9.70- _. 10:54 2004 2005 225,167 225,079' 11:11 12.9 `— Source: U.S.Oept,4f EneEpy Energy(nformatian�ltlminlafration Central Oregon Comprehensive Economic Development Strategy Page 44 Appendix A 1986 3,495.4 69 .0 1990 3,874_,2 91,7 1995 3,821.1 --. 80.3 4,207.2118.3 2000` 2002 _ 4,295 8 �. WW ; 96.8 2003 4,224.2 123.9! _J, 2004 4,109.1 150.7 _ —7— 2005 4,294.9 188.0 ' Federal and State taxes increase the price of a gallon of gas at retail outlets The U S. Dept. of Energy Energy Information Administration only provides pre-tax data on the price of gas. In 2004 in Oregon, the total federal and state taxes charged on a gallon of gas w as 42.4 cents Source: U.S. Dept. of Energy Energy' Information4ministretion 20.5 Bend $2.51 g. Access to Child Care 3.26 Number of child care slots available for -every -100 children under age 13' Type of Provider _ - �' Number Exempt Centers 1993 1996- 1997 2000` 2002 X2004 3 -Yr Avg STATEWIDE 15.7 16.3 19.6 20.4 18 16.5 17.7 Crook 8.2 14.8 ` ----� 12.4 11,47 = 10 9.9 10.6 — Deschutes 20.1 24.8 k 20.5 _. 16 9_� 16 16.8 16 Jeffersonson 24.1 21.3` �11.3 21.4 — 111;6 of Providers 487 18<] _ source: Oregon Benchmarks - CountyDW.Book, November 2005, Oregon Progress B..rd -- 6,646 mm S4urcer 2001 Oregon child Care M arket Rata St ud y- Central Oregon Co mmunit y A ct io n Agency Network 3.27 Central Oregon Licensed Child Care Provider Inventory Type of Provider _ - �' Number Exempt Centers 2 licensed Centers38 Exempt Preschoers _ ol 29 Registered Family Child Care 203 Certified Family Child Care 25� _ Exempt Family Child Care 173 Recreational Programs _1____ _ 6 School Age Programs', 3' Other Types of Care _ 8 Total Number of Providers 487 Licenced Capacity Slots � -- 6,646 mm S4urcer 2001 Oregon child Care M arket Rata St ud y- Central Oregon Co mmunit y A ct io n Agency Network Section 4: Industry Composition The Oregon Employment Department projects that Central Oregon will create an additional 17,520 jobs over the next ten years, with the largest number created within the "leisure and hospitality" and "trade, transportation and utilities" sectors. See table 4.1 for a summary of projected sector growth. Table 4.2 provides projected industry growth within the region. Of the region's top performing private industries, "food services and drinking places" is expected to see the greatest overall increase in jobs, while wood products manufacturing projects an overall decline in jobs. Central Oregon Comprehensive Economic Development Strategy Page 45 Appendix A 4.1 Projected Employment by Economic Areas, Regional I Iniustry 2064. _ —`2-0-14 Projected Change %Change _ Total Nonfarm Payroll Employment 71,920( 89,440 17520 24.40% Natural resources ald rr�ning' 450 480 30 '- 6;76% Construction _ 7,6401 610 26.70% Manufacturing 8,516 8,910 - 400' 4.70°l0 Trade, transportation and utilities 14,150 17,750 3,600 } 25.40% hforntgtiori; 1,560 1,880 ' __ 324' 20,50% Financial activitiesv4,370 _ 5,120�� _ 750 �, 17.20% Prptessional and business services ��m ;8,400 8t810 r 2,41.Q 37.70°f° Educational and health services 7,800 10,170 p 2,370 30.40% Leisure and hospitality 9,370 13,660, 3,690 39.e40°�, _ Other services _ 2,120 2,480 360 �` 17.00% Government (inciudos Indian tri6ao �� 11,150 „ 13,160 2,0-10--,-'—,-18.60% Source: Oregon Employment Department �� Central Oregon Comprehensive Economic Development Strategy Page 46 Appendix A Central Oregon Comprehensive Economic Development Strategy Page 47 Appendix A 5 Western states Business Costs Comparison 'repared by Economic Development for Central Oregon) ost Factor_.--�-OregonCalifornia Washington^Idaho Colorado PERATIONAL COSTS atural Gas Costs (at city gate) (Avg. $5.86 $6.04�� $6.15 -� $5.69 $5.02 Corporate Excise (Income) Tax jross'Receipts Tax' Business & Occupation Tax Capital Gains Tax Rate Communications fax Rate On Interstate Calls On Intrastate Calls Sales Tax Unemployment Insurance Tax (new employers) Unemployment Insurance Taxable Wage Base Avg. Property Tax Rates for Market Value of Property, 2002 OTHER COST F Personal incom Real Estate Exc moior ruels lax ver uauon LABOR Average Annual Pay, 2004 (state) Avg. Hourly Earnings for Production Occupations (20_04) of Private Manufacturing Union Membership (2004) Average Workers Compensation Ra per $100 of Payroll, 2004 Updated with most recent data as of May 2005. 4.6 Industrial Land Cost Corn Region or Town'. Bend rea Prineville Madras _ Klamath Falls 6.60% 0.00% 0.00% 3.20% ,27,001 1.14% 0.00% 8.84% 0.00°10 0.00% 9.30% 7.25% Na NO 6,25% 3.40% $7,OOC 1.08% 10.00% 1_0.000/0 9.50% 0.00% _ 7.60% 4.6 % 4.80% OAO°k 0.00% _ 71% -1 %W-� 0.00% -n -1--d..00 0 4)0% 7.$0% 4.63% -- 6.509/6 _ _.. 5.40% 30,20' 1.23% 1.28% ----T $0.24 $0.18 $0.28 $36,370 $41,510 $40,430 $14.21 $13.46 $15.74_ _ 15.20% 19.30% j 18.50% $2.05 $6.08 $2.26 _ -o ._-a- -for SOU RC E: Economic Development far Central rage price range ($tsgft) $8.00-10.501-- $1.75-3.00 $1.50-2.00' $0.75-2.00 $t) 75- 50..____� $0.25-1.00 NO NO YES 1.50% 127,800 $10,000 2 1.48% 7.22% _��_-- iterpnseZone 1%3%stateSales7ax exemption, $ 200 tax credit per employee for health insurance (2 yrs.),10%tax credit for Job training 3% invest. tax credit, 3% R &D tax credit, 26% build rehab. tax credits.; 4.63% _ 0.00% - -6-6-d-/.-- OI00% 0.00% -$O 25 -$0 ;32,35 0;32,350 $39,410 $12.67 $14.60 ` ;8�09% 8.40% Central Oregon Comprehensive Economic Development Strategy Page 48 Appendix A As table 4.6 demonstrates, industrial land prices in Central Oregon vary widely. Bend appears to have the highest industrial land price per square foot of any region in the state. Other cities, such as Redmond are moderately priced in relation to other regions. Prineville and La Pine are among the most affordable industrial land locations in the state. a. Access to Capital The region's banks have experienced a high degree of growth in deposits over the past five years, particularly in Deschutes Counties. These dollars can provide increased lending capital within the region. 4.7 Value of Deposits by County (` i gook Deschutes Jefferson Oregon 1987 County ------------------------ 2004 2003 2002 2001 2000 Crook I T $167,457,000 $153,201,000 $132,248,0001 $123 243re000 $114 877,000 Deschutes _ $1,613,082,000 $1,470,375,000 $1,208,192,000'' $1,068,783,000 $987,658,000 Jefferson W $111 649,000 $104 408 000T $100 447,00!) py _ $92 269 000 ._ 6!436,000 Source: Federal DepositirmuranceCoorporatfon-6ttp;//www,fdlc.gov/deposit/indox.htrri Average SizeofFarm s (Acres) _ 1987^2,074 b. Agriculture Industry 4.8 Number and Size of Farms by County, 1987-2002 Number -of Farms gook Deschutes Jefferson Oregon 1987 415i 884 341 32,014 Deschutes 503 1,036 345 31,892 �- 1997 _ 521 1,235 399 34,030 2_002 685' 1,632 428 40,033 Land in Farms (Acres)�� _ _m - 1987 $60,738 152,152 546,590 17,809,16_5 1992 _ 894,853 _. 139,483530,960 17,609,497- 7997916,45! 77 124,395783,466° 17,449,293 2002 937,628 _ 138,226 701,440 17,080,4Z2 ---- 0 422-maAverageSize Average SizeofFarm s (Acres) _ 1987^2,074 _� 1721,486 i 556 992Tm .. 1,779 - =1351,539 552 1997 1,759 101 1,964 513 2002 85 1,639 427 _y_� _ Median Size of Farms (Acres) 1987 NtA' N%A N/A N/A 1992 N/A i- N/A N/A 1997 70 20 160 38 2002 _ _ _ 66 21 160 39 Source: USDA Agriculture Census, 2002 4.9 Market Value of Agricultural Products by County, 1987-2002 Market Value of Ag. Products _ Crook Deschutes Jefferson Oregon 1987 $23,201,000 $14,856,000 $1,846,067,000 1992 $28,073,000 _$31,680,000 $16,360,000 - $42,456,000 $2,292,973,000 " 1997 $31,436,000 � $21,49_5,000__ _.� - $43,152,000 $2,969,194,000 2002 $32,873,000 $20,983,000 $40,785,000 $3,195,497,OOp _ Market Value of Ag. Products Sold per Farm 1987- $55,906 $16,805 $92,905 $57,864 1992 $55,811 $15,792 $123,061 1997, : $60,338 $17,405 T -- $108,150 $87,252 2002 $47,990 _ $12,857 $95,292 $79,822 Source. USDA Agrlaulture Census, 2002 Central Oregon Comprehensive Economic Development Strategy Page 49 Appendix A C: C HM O 00 00 ',. 00 p> R o 0 cp O w 0 O N It oivhrn o<pv t, rV o 'N N O r r' M M.N N � O m jo yo Lo co co o V R O 1 C',V`.N jc,`!4 04 Lc) O`:1 O .�., rw r 7f") MN N N.N 7� fffi Ot om O Nm N mA d Z,O NCO N (' W 00 N N dlv o�.�fn N M N Lf)N N.n R �i0) N 0 c R:00 N� € a0 �Q1 to �R U M r °O co r r L co O N V' <O i y pjcj N: N co n N N V''E 1 kJ € € Q € {j LL ` _N `N tN Ih, N O� O d d i a 7 i E' s U! m E ' .t jh Li 0 ° 0 € i s w � C (Q 7 LL df N hN...`(N M1N O E N h N� drn 0)o d}rn O c4 co O N R ea U o' .� o .3 N � r � N m: HM ml N D M W �N N ` 3p N �M 77MO _ ALO 1� tlQir m!to �°r MEQ O II N d ' U; C wN N e w —,O �,+c N1r E 3e m ��u°;miQE v!O 3 y d d. i i� (U (� f `— I E N10 iM " 0 (D — IO C)Oi ILO0 ;�0 CD a. I v E a �Ni cn w 10, N N M R E c O N M'c Uj d'07 �(VliL o m l.0 u`O. NEE v� 0 01 € t U i 003 C6 't W) Lo M j LOj t . Q N let �r jN �r I E ? N 70 N cr Y L7f' 4 clfi W C p ►� Ni.'se, c c .ela Ned I.m{f01 Nbg J 7 dj( IO Lo, W;1: U liq LL K U ; O i r+ c N E O d C C O c O V W d y c 4) L- CL a 0 U c O tm 2 OQ X L � Z C C d C - UQ to ( o � ci 'vi ��vi M C 03o�'N tT � d OM mm OD M P� O m R SM m tl' N m y Q�m os o�ei� u� cn ai M n Y I � r M N 10ft g r O M'N Ot om O Nm N mA dlv o�.�fn 10 Io W N O �- N IN off N O U c S O r M o a co N �D. O er N m O y N s0 N(O O P N: N co n N N V''E N M oo v+ Q € _N `N tN Ih, N O� O d d i a 7 i { a jh 3 ° 7 Y O N O c4 co O N R ea U N m N O to M€arN a'n� m o - N ( c m d u 4v�ti,F o a y « c c A $ A LL c4 '.u) i r+ c N E O d C C O c O V W d y c 4) L- CL a 0 U c O tm 2 OQ X L � Z C C d C - UQ 2 \ Q § 2 ƒ } \ A m ❑ o % ; k' � � \ 2 � � � \� � § . � / \ � �\ � ■ 41k R z � . 2 \ Q § 2 ƒ N v �78 LL LLL > a 5 a a 0 � O N C J O H w O e a d !C IL ca a a c ea J d O LL R� tp ton v, Ci o 0 0 0 0 0 0 N v a. Supply of Residential Land A large volume of Central Oregon residential construction activity has accompanied the rapid population growth of recent years. As the table below suggests, over 3000 new homes are being built in the region each year, with annual building permit applications steadily increasing. 5.6 Residential Buildina Permits I City/County Number of Perm Its Number of Perm Its �� 2003 2004 _ Bend 1339 1801 Redmond 516 725�� Prineville 101 137_ Madras Sisters 16 24 � Crook Courtly .173 Deschutes County 660. Jefferson County ..163 _ Source: County Building and Planning Departments With such substantial amounts of recent building activity, the Cities of Central Oregon have had to evaluate whether they have adequate amounts of buildable land within their urban growth boundaries to accommodate future growth. Meanwhile, Central Oregon Counties are trying to meet demands for residential land within rural residential zones, destination resort overlay areas, and to some degree in agricultural zoned areas. As the table above reflects, the cities of Prineville and Sisters have expanded their urban growth boundaries within the past two years and the cities of Redmond, Bend and Madras anticipate UGB expansions within the next two years, making thousands of acres of new buildable lands available. Several thousand rural residential zoned lots are available and as yet un -built in the three Counties. In Crook County the bulk of rural residential lots are in the Juniper Canyon area, while in Jefferson County there are thousands of available lots in the Crooked River Ranch and the Three Rivers areas. Deschutes County has rural residential zoned lots available in numerous areas in proximity to current population centers. Dwellings are also permitted in agriculturally zoned areas at a variety of sparse densities. The passage of Measure 37 in 2004 also makes it possible that landowners who owned property prior to current zoning designations will be able to develop lands throughout the three counties at various residential densities. Deschutes and Crook counties have 112,345 acres and 35,098 acres in destination resort overlays respectively. Jefferson County is currently developing a destination resort overlay. With recent increases in the ratio of residential to rental units allowed in destination resorts, Central Oregon can anticipate that more than half of the land developed as destination resorts in the region will be residential in nature. Destination resorts that are currently in the planning or early development stages in Central Oregon include: Brasada, Thornburgh, Caldera Springs, and Cascade Highlands. The recent residential lands analyses by Central Oregon cities and anecdotal discussions with County planners suggest that adequate lands will be available to build the number of housing units required by future residents in Comprehensive Economic Development Strategy Page 53 COIC coming decades. But the residential lands analyses also suggest that if current trends continue, the vast majority of the housing units built may be unaffordable to the local workforce. Section 6: Infrastructure a. Central Oregon Water Supply Crook, Jefferson and Deschutes Counties lie almost entirely within the Deschutes River Basin. The upper portion of the basin — consisting of the area that drains into Lake Billy Chinook — has an average annual groundwater recharge from precipitation of 2.7 million acre feet and an average annual "unregulated" surface water discharge of approximately 3.7 million acre feet or 5,036 cfs. Humans consume a modest portion of the total surface discharge and groundwater recharge of the upper basin each year. Average annual consumption of upper Deschutes basin water by major use categories is estimated below: 310,000 acre feet per year — surface water diversions for agriculture 14,000 acre feet per year — surface water diversion for municipal use 11,000 acre feet per year — groundwater pumped for irrigation 8,500 acre feet per year — groundwater pumped for municipal and domestic use While the total volume of water diverted and used each year is modest compared to the total discharge and recharge, the environmental impact of dams and diversions on the timing and volume of surface water flows is substantial. Many river and stream segments in the upper Deschutes basin are depleted during seasons when they were full pre -settlement and over full in seasons that naturally had lower flows, with significant implications for habitat, erosion and sedimentation, and recreation. Because of these impacts the Oregon Water Resources Department has stopped granting additional rights to divert surface water in the upper basin. As the demographics and economy of Central Oregon change, new demands for water by humans and ecosystems will be met through increased use of groundwater supplies and the conservation and transfer of existing surface water rights. When an entity such as a growing city or new destination resort seeks a permit for new groundwater pumping, that entity is currently required to provide mitigation credits — putting water back in - stream for water extracted — before the permit is granted. This mitigation system provides a mechanism to acquire new water supplies for growing populations in most of the region, though the localized impacts of new groundwater extraction need to be carefully managed. Since mitigation credits will primarily be generated through the temporary or permanent transfer of agricultural water to in -stream uses, the mitigation system does create incentives to reduce the level of irrigated agricultural activity in the region with implications for both land use and the economy— though this reduction in activity is in many ways itself a by-product of urban and ex -urban residential development. The groundwater mitigation credit system provides a mechanism to address water needs across much of Central Oregon, but the ability to purchase the credits will not address water needs in areas where groundwater is physically not available. While the total volume of water traveling through the Deschutes Basin is large, there are portions of the region where groundwater if relatively scarce or declining. The portion of the basin that lies beneath the Crooked River watershed only benefits from plentiful groundwater recharge from the Cascade Mountains near the confluence of the Crooked River with the Deschutes. Upstream portions of the Crooked River watershed Butte rely upon much more modest volumes of recharge from areas such as the Ochoco Mountains, or broad areas of high desert, to maintain their groundwater supplies. Thus actual groundwater in the Powell Butte area and areas surrounding Prineville may not be available to meet new demands even if the legal right to pump can be acquired. In areas where groundwater supplies are limited, would-be new water users may need to seek supplies through water imports or transfer of water from agriculture. Water Purveyors Several municipal and private entities operate public water systems in Central Oregon. Some of these systems have significant excess capacity with their current sources while others are reaching the limits of existing sources. As the analysis above suggests, public water systems will be able to acquire permits to extract more groundwater in the future — the key question is how much it will cost to secure mitigation credits. Compared to Comprehensive Economic Development Strategy Page 54 COIC state and national averages, water utility rates in the region are presently fairly low. Central Oregon public water systems with 300 or more connections are listed below. 6.1 WaterSvstem County �connections ISources 1 City of Prineville Boardings, City�Strests County Roads State Highway 3300 groundwater w ells_��_ -- City of Bend Mahlon Sw eat Field (Eugene) 366,376 36000 groundw ater w ells and Bridge Creek nY 256,896 66.14%_ Roberts Field , ; T400 - - groundw star w eAs City of Sisters 17,686 31,198_ 76.40% 850 groundw star w ells and Pole Creek Cit of Madras Y Eastern Oregon Regional (Pendleton) - �. 970 Deschutes Valley Water District and groundwater wells _ Deschutes Valley Water District W _ Source: Federal Aviation Administration, Enplanement and All Cargo Reports 1993 and 2004 3515 groundw star w ells and Opal Spring } Terrebdnne Domestic Watet District 'Ca -Ane I 3 370 �_' groundw star w ells ` Water District 300 _ groundw star w ells Avion Water Co,�:Sfi7b� �� ` groundw star w alis �� Sunriver Water LLC _.w- 4058 _.._... _ groundw star w ells Crooked River Ranch Water Co •' 7505 groun�waterwells Black Butte Ranch Corporation W 1150 groundw star w ells--- Agatellltakerys stem 1020 groundwaterwells- Cline Butte Utilities _ --, _.t___ _, 982 roundw ater w ells Water Wonderland Improverrmnt Dist. 590 ___ _� groundw star w ells Ponderosa Pines Water Co. 450 groundw ater w ells Tollgate water C6. 385 groundwater wells Seventh Mtn Resort �__�__. _300 _ ._ _ groundw ater w ells � n� -- Source; Oregon DepartrtrcMaf Human Services Ddgklng Water Program — �' .; b. Transportation Infrastructure Funding for transportation infrastructure is the greatest infrastructure -related challenges facing the region. State resources are decreasing over the next several years due to funds traditionally earmarked for transportation enhancement projects being directed to bond payments for the statewide bridge program. Adding to this challenge are flat or decreasing gas tax revenues due to increasing vehicle fuel efficiency, increasing construction project costs, and potentially reduced local road funding as a result of reduction or elimination of the federal County Payments program. Compounding the challenge, the region's rapid population growth is placing increased stresses upon the transportation network. 6.2 Passenger Service at Oregon's Commercial Service Airports - 1993 to 2002 County 1993 2004 Boardings Percent Change Boardings, City�Strests County Roads State Highway Portland International Airport 4,240,590 6,379,8_84 50.45°/a Mahlon Sw eat Field (Eugene) 366,376 349,161-4.70610 Rogue Valley International 154,626 256,896 66.14%_ Roberts Field , ; 73,478 149,445 103.39% North Bend Municipal (North Bend) 17,686 31,198_ 76.40% Klama#h'Falls^ 18,617 47.86°!0 Eastern Oregon Regional (Pendleton) -- m_.___ 9 752 _27,527 — w 7,454_ -23.56% Total Oregon Erplanements 4,881,125 7,201,565 41.64% Source: Federal Aviation Administration, Enplanement and All Cargo Reports 1993 and 2004 6.3 Road Mileage Sum m ary by County OT heVehicle Miles Traveled are rounded to the nearest 1QD,000) . County City�Strests County Roads State Highway Other State Other Federal' Crook 50.66 62'9.501 ' 174.12 r 3.30 473.00 Deschuties 490.53 1;497.85 238.17 30,75' 608.00 Jefferson 55.42 815.56 95.87 11.60 � 378.00 Region 686.Bf 2,943.01 508.16 45.65-' 1,459,00 Oregon �� 10,01103 33,328.72 �- 8,061.85 4,663.96 38,305.89 •Ixfud esl3SFS,EI.M,aIA Source: ODOT 2004 Oregon Mileage Report 6.4 Oregon Vehicle Miles Travel for state owned highways within each county OT heVehicle Miles Traveled are rounded to the nearest 1QD,000) . �� 2004 2002 �_ 2000- 1998 .1994 Crook� 106,700,000 148,800,000 105,700,000 93,[00,OQ0 86,100;000 Deschutes 681,900,000 669,500,000 602,200,000 582,600,000- 524,700,000 0,000 Jefferson 191,100,000 184,500,040 1829000Otl 177t00,UQ0 Region 979,700,000 962,800,000w -F 890 800,000- 852,800,000 771,400,000 _ _� Orelaan 20,7 4,300,000 20,940,700,0.00 20,450,700,000 19,716,040;000 17,975,400,000 Source: ODOT Transportation Key Facts, 2004 Comprehensive Economic Development Strategy Page 55 COIC 6.5 Vehicle Miles Travel on State Highway%Increase 1994-2004 Crook -� 25%� Deschutes _ Warm Springs -Hwy 26 0.1 mile SE of Agency -Hot Springs Rd -Agency- 30% Jefferson 7,600 26.66% 18% Region 12,700 17 27% State 2,400 T_ 15°% ' Source: ODOT Transportation Key Facts, 2004 Redmond - Hw y 97 north city 6m@s .6 mile N. of Maple Lane' 11,400 6.7 Vehicle RepistrationsbyCounty -1992-_2.0.04 Crook Deschutes Jefferson _Region Oregon 1992 20,150 108,881 ^� 17357 146,388 3,066,865 1996!- 25,890 125,736 19,02 r 170,628 3,427,314 2000 _ 27,731_ 153,341 22,192 4 ._J 203,264 3,678,467 2004 32,331 179,747 25,509 237,582 3,985;785 Percent Increase in vehicles 1992-2004 60.45°% 65.09°h 46.97% 62.30% 29.96% Persons pervehicle,2004 1,51 1.34. 1.28 1.35 1.11 Source: Associationof Oregon Counties 6.8 Average Daily Traffic Volumes at Selected Locations • 1994-2004 �.._.___ 1994 2000 2004 Percent Increase _ Warm Springs -Hwy 26 0.1 mile SE of Agency -Hot Springs Rd -Agency- __ _ -----T- 6,000 7,400 7,600 26.66% Madras Madras- Hwy 97.37 mile N. of, Madras-PrinevtleHighway' w ^1D,6UD 12,700 17 13,100 23.58% Culver - Culver Hwy north city limns� 2,400 T_ 2,500_ 270 12.50% Redmond - Hw y 97 north city 6m@s .6 mile N. of Maple Lane' 11,400 23,800 25,500 123.68°% Redmond - Hwy 97 .8 mile south of Yew Avenue ] 18,700 1008 600 52.94% _ Prineville - Hwy 126 west city tests 11 mile E, of Locust St: 14,300 __�I 16,700 14,200 -0.01% Sisters -Hwy 20 east city limits .02 mile E. of Locust St. 10,400 11,500 11,900 14.42°%� Bend -Hwy 97 .05 mile north of ML View Mall -' _ ._. 17,700 '30,200 34,8o6 -___L_ 4,806 96.61_% _._ _ . _..._ __..:_ Bend -Hwy 20 .06 mile E. of Pilot Butte State Park Rd. 14 600 20,000 22 500 54.10 % Lava Butte - Hw y 97 17 mile S. of China Hat Rd. 17,000 19 800 22,100' 30% La Pine - Hwy 97 .01 mile N. of 1 st Street _ 8 400 8 300 9 000 -7 14% source; Oregon DeparttKent of Transportation 34,600 ' 53,100 6.9 Projected Future Average Daily Traffic Volumes at Selected Locations - 2004-2024 2004 2024 Percent Increase Warm Springs - Hwy 26 0.1 mile SE of Agency -Hot Springs Rd 1-_____T_606_______1_1 1,_0_0_0 44.74% Madras - HwY97,37 mile N. of Madras -Prineville Highw ay 13,100 17;900 36.64% Culver - Culver Hwy north city limits (( 2,700 ff 4,000 48.15% Redmond -Hwy 97 north city limits .6 mile;N. of Maple Lane" ` 2_5,50 ' 43,00 68.63% Redmond - Hw y 97.8 mile south of Yew Avenue �`� 28,600 7 45,800 _ 60.14% Prineville - Hw yl 126 w est city limits .01 mile E, of Locust St, 14,200'' 20,700_ 45.77% Sisters - Hwy 20 east city limits .02 mile_E of Locust St. 11,900 18,000_ 51 26% Bend - IHw y 97.05 mile north of Mt. View Mall„ 34,600 ' 53,100 Bend - Hw y 20 .06 mile E of Pilot Butte State Park Rd �� 22,500 34,200 _52.59°! 52.00%. Lava Butte - Hw y 97.17 mile S: of China Hat Ind. 22,100 T 34,600 �< 56.56%e La Pine - Hwy 97 .01 mile N. of 1st Street _ ._ _.m 9,000 _ 13,800 53.33% Source; Oregon Department of Transportation Future Volumes Table, 2004 _ _ c. Telecommunications Infrastructure Central Oregon enjoys a high quality, high capacity and affordable telecommunications infrastructure network. Broadband is widely available throughout all Central Oregon communities, with competitive choices in most communities. Qwest Communications provides Digital Subscriber Line (DSL) broadband in each community as well as in many rural areas such as Powell Butte, Juniper Canyon, Crooked River Ranch, and Black Butte Ranch./Camp Sherman. BendBroadband and Crestview Cable provide high-speed broadband internet services through their service areas. Other providers, such as Unicom, Bend Tel, and ClearWire, provide a wide array of DSL and wireless broadband options. Comprehensive Economic Development Strategy Page 56 COIC Central Oregon's high-capacity fiber optic backbone, owned and operated by Qwest, provides ample capacity for Central Oregon's voice and data needs. The fiber optic network includes two routes into and out of the region, ensuring a high degree of redundancy/reliability. 6.10 Telecommunications Services Crook County Deschutes County Jefferson County Fiber Optic to Communities Yes Yes Yes Route Diversity Yes Yes Yes Broadband DSL Yes Yes Yes Broadband Cable Internet Yes Yes Yes Pricing fqr Brpadband within 125% Urban4 areas Yes Yes Yes Source: COIC Telecommunications Coordinator Section 7: Qualitv of Life a. Air Quality The air in Central Oregon meets or exceeds all National Ambient Air Quality Standards and is generally considered to be good. However, 12 air pollutants have been detected at levels that exceed more sensitive health -based benchmarks set by the U.S. E.P.A. including: acrolein, benzene, 1,3 -butadiene, carbon tetrachloride, chloroform, chromium, diesel particulate matter, ethylene dibromide, ethylene dichloride, formaldehyde, perchloroethylene and polycyclic organic matter. Some of the most significant sources of air pollution in the region are motor vehicles, wood stoves, agricultural and slash burning, development projects, and dust from roadways. These sources contribute pollutants such as ground -level ozone (smog), carbon monoxide, fine particulate matter, sulfur dioxide, and nitrogen oxides to our atmosphere. Natural phenomena such as inversions and forest fires also periodically impact air quality in the region. Source: Oregon Department of Environmental Quality (DEQ), 2004. b. Central Oregon Groundwater Between 1989 and 2003 the quality of water from 3632 Central Oregon domestic wells was tested at the time that homes associated with those wells were sold. The table below documents the number and percent of domestic wells where tests revealed nitrate levels above 7 mg/L, an important state health action level. High nitrate levels are a threat to public health, especially to children, and may also indicate that human activities at the land surface are polluting groundwater bodies with other contaminants. Domestic wells with high nitrate levels were concentrated in the La Pine area and in the area surrounding and northwest of Prineville. A few wells with high nitrate levels were found in the Redmond/Terrebonne area and in the Sisters area. Among public water system wells in the three counties, 5 out of 295 found nitrate levels higher than 7 mg/L during periodic well testing in recent years. A review of the violation records for public water systems in the region reveals occasional maximum contaminant load violations (MCLs) for some of the regions mid- to large - size water systems in the past decade. The new residential, commercial and industrial activities that come with growth may pose new threats to groundwater quality in the future. Comprehensive Economic Development Strategy Page 57 COIC Sources: Oregon Department of Environmental Quality — 2004 Section 305(b) Report; Oregon Department of Human Services — Drinking Water Program. c. Central Oregon Rivers and Streams Every two years the State of Oregon develops a 303(d) list, which is a list of water bodies that are not meeting water quality standards for the designated "beneficial uses" of those water bodies. Essentially, this is an evaluation of whether the state's water bodies are clean enough to drink from, swim in, eat fish from, or provide habitat for sensitive aquatic species such as salmon or trout. The 303(d) list for 2004 identified the Deschutes and Crooked Rivers as water quality impaired and not meeting water quality standards for beneficial uses. At various locations along these rivers at various times of year concentrations of suspended solids (turbidity), chlorophyll a (algae), and sediment exceed state standards. In addition, these two rivers are impaired by high temperatures, low dissolved oxygen, and high pH in various segments during various times of year. The Crooked River has exceeded standards for fecal coliform in the lower reaches in recent years. Because of these water quality impairments the Oregon Department of Environmental Quality is developing a Total Maximum Daily Load (TMDL) allocation for the Deschutes Basin, including the Crooked River Sub -basin, to address land uses and water pollution activities which keep the Deschutes and Crooked Rivers from meeting standards. The TMDL could have significant ramifications for human activities across the Basin, including numerous economic effects. Source: Oregon Department of Environmental Quality — 2004 Section 305(b) Report d. Recreational Lakes The U.S. Forest Service began monitoring blue-green algae in several lakes in Deschutes County in 2004. In most bodies of fresh water and most weather conditions, blue-green algae does not pose a threat to wildlife or humans. However, during warm weather periods, blue-green algae blooms may concentrate to levels hazardous to human health. As of August 2004, three lakes in Deschutes County have been found to contain significant blooms of blue-green algae, including Lava Lake, Crane Prairie Lake, and Paulina Lake. Source: DHS — Oregon Health Services, 2004 Comprehensive Economic Development Strategy Page 58 COIC Appendix B — COCIB Bylaws CENTRAL OREGON COMMUNITY INVESTMENT BOARD BYLAWS ARTICLE I Name The name of the organization is the Central Oregon Community Investment Board. ARTICLE II Purpose The purpose of the Central Oregon Community Investment Board is to: A. Prepare a budget for developing, implementing and monitoring the regional investment program and the rural investment program. B. Recommend hiring and contracting actions to the counties. C. Prepare a long-term regional investment plan and a rural action plan. D. Seek input on the regional investment plan and the rural action plan from the cities, ports, special districts, Indian tribes, private economic sector and other parties in the region. E. Hold a public hearing on the regional investment plan and the rural action plan in each county in the region. F. Submit the regional investment plan and rural action plan to county governing bodies for adoption. G. Present the regional investment plan and rural action plan to the state for review and approval. H. Adopt all rules and policies necessary to implement the regional investment program and the rural investment program. I. Identify and develop projects. J. Award project funding. K. Monitor the implementation of projects. L. Report on regional investment program and rural investment program performance to the state. M. Update the regional investment plan and the rural action plan as needed. ARTICLE III Membership The Central Oregon Community Investment Board will be comprised of 15 members who represent various local interests including cities, counties, ports, special districts and Indian tribes. The Board will also include members who are representatives of rural interests, including local government. Crook, Deschutes and Jefferson counties shall each appoint five members to the Central Oregon Community Investment Board. At least two of these members shall primarily represent the private economic sector. The private economic sector includes representatives from for-profit or income producing non-profit businesses. This excludes residents employed by, appointed by or elected to a public or quasi -public entity. Appointments shall be made at the beginning of each biennium. The biennium shall be defined as beginning July 1 of every odd numbered year and ending June 30 of the following odd numbered year. ARTICLE IV Officers Section 1. The officers and Executive Committee of the Central Oregon Community Investment Board will be a chair and two vice -chairs, one from each county. Section 2. The chair shall preside at all meetings of the Board and supervise the administrative affairs of the Board. A - vice -chair shall in the absence or incapacity of the chair, perform all duties of the chair. Section 3. The Election of officers shall take place during the first meeting of each biennium. The term shall be for a biennium. Section 4. The officers of the Central Oregon Community Investment Board shall constitute an Executive Committee. The Executive Committee shall act on behalf of the Board between meetings. Any motion of the Executive Committee may be approved by consensus. The actions of the Executive Committee shall be subject to ratification by the Board, except when actions have been previously authorized by the Board. ARTICLE V Elections Section 1. The election of officers may take place at any regularly scheduled meeting of the Board. Nominations from the floor are in order provided that the nominee's consent to fulfill the duties of that position has been obtained. Section 2. A quorum of the Executive Committee shall consist of the chairs of each county or their appointed representatives. COCIB Bylaws Last Revised 10/31/01 ARTICLE VI Quorum Eight voting members, including two voting members from each county, constitute a quorum. Any motion may be approved by a minimum of eight Board members, provided there is one affirmative vote from each county. ARTICLE VII Absentee Voting Each county is permitted to appoint two or three alternates to fill vacancies and vote at Board meetings in the absence of regular members. Alternates must be appointed by the county commissioners of the appropriate county and noted as a matter of record. Alternates will receive correspondence in the same manner as regular Board members. ARTICLE VIII Vacancies Vacancies shall be filled by the county commissioners of the appropriate county that has a vacancy within thirty (30) days. ARTICLE IX Standing Committees There shall be an Executive Committee that consists of the chair and two vice -chairs. ARTICLE X Meetings The chair may schedule meetings as the need arises or a majority of eight voting members may call a special meeting, provided that there is representation from all three counties. Notice of the meeting must be given in writing to all members prior to the meeting. Meetings will be conducted by Robert's Rules of Order, Newly Revised. Minutes will be taken at all meetings. ARTICLE XI Amendments Bylaws are reviewed on a biennial schedule. These Bylaws may be amended by the affirmative vote of at least eight board members, provided there is one affirmative vote from each county, at any regularly scheduled meeting. Notice of the meeting, with proposed changes, must be given to all members of the Board in writing at least ten days prior to the meeting. COCIB Bylaws Last Revised 10/31/01 Appendix C - COIC Financial Audit Results Placeholder Appendix D — Public Hearing and Notice Process Will document upon completion.