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HomeMy WebLinkAboutREOA COIC Documents2007 Central Oregon Comprehensive Economic Development Strategy Central Oregon Intergovernmental Council (COIC) Regional Investment Strategy Central Oregon Community Investment Board (COCIB) Approved by the Central Oregon Community Investment Board 11/29/07 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 g 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 Regional Advantages: 12 Regional Disadvantages: 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 Section 1. Administrative Agent 24 Section 2. Application Process 24 Project Selection Criteria 25 Section 3. Project monitoring and disbursements 26 12. Evaluation Plan 26 13. First -Source Hiring Agreements for Benefited Businesses 27 Appendix A Appendix B Appendix C Appendix D Appendix E — — Central Oregon Data Profile — COCIB Administrative IGA — COCIB Bylaws — Public Hearing and Notice Process COIC Audit Report, 2007 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 2856.230(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 Tong -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: GOAL II: GOAL III: GOAL IV: GOAL V: GOAL VI: GOAL VII: GOAL VIII: GOAL IX: GOAL X: GOAL XI: GOAL XII: A Distinctive, Competitive Economic Region with Competitive Communities that Leverage Economic Gain from Their Assets A Business Climate that Supports the Region's High Level of Entrepreneurialism and Innovation Increased Regional Economic Self -Reliance through Diversification of Local Resources Available to Businesses and Citizens High -Quality K-20 Education Systems to Produce, Retain and Attract Highly Qualified Workforce High -Quality Social and Human Services to Produce, Retain and Attract a Quality Workforce Sufficient Supply of Housing Affordable for Workforce Restored Streamflow and Water Quality to the Deschutes River and its Tributaries Protected Open Spaces, Critical Wildlife Habitat, and Working Landscapes Restored Forests and Rangelands Preserved and Enhanced Air Quality in Central Oregon Economic Decision Makers are Provided with Information and Analysis which Demonstrates the Importance of Environmental Quality to the Regional Economy Transportation: Functional and Efficient Movement of Goods, Services, Residents and Visitors Into, Within, Through, and From the Region Central Oregon Comprehensive Economic Development Strategy Page 3 Regional Investment Strategy GOAL XIII: Sufficient Supply of Land Affordable for Commercial, Industrial and Residential Development 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 Tong -term priority goals are as follows: r l P191l, e4rt cUt� 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 Govemments organized under ORS 190 by the three counties and seven cities of Central Oregon. COIC is govemed by a 15 -member board made up of elected officials appointed by each of the member govemments — 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 Govemments, 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 Tong -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. ; , , -,)0_?: F , i ` , i -9,E o Ific4 r ,i €K FIU' . ,;.�-P v f i E. t x X Y Crook County Deschutes County _f ,:t iF , J Jefferson County 1 Scott Cooper (CHAIR) Crook County Judge David Inbody (Exec. Comm.) Deschutes County John Hatfield (Exec. Comm.) Jefferson County Commissioner Brenda Comini Crook Co. Commission on Children and Families Mike Daly Deschutes County Commissioner Janelle Orcutt Madras Sanitary Larry Henderson Les Schwab Tire Ctr. Eric Sande Redmond Chamber of Commerce Jim Wilson JTS Animal Bedding Bobbi Young. Bank of the Cascades Judy Trego Staff to Congressman Walden John Curnutt JBC Management Sally Goodman Prineville Disposal Mike Schmidt Bend Chamber of Commerce Parrish Van Wert Deer Ridge Correctional Facility Larry Smith (alternate) Les Schwab Tire Ctr. Darwin Thurston (alternate) Mid State Electric Altemate - Vacant 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. 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SY ... 9�1 � .'+•.N Private and Non-profit: 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 Cylvia 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 Rangila 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 Kulongoski'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 2856.230-.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 2856.239(e): "A long-term plan to implement the regional investment strategy," • ORS 2856.239(f): "A six-year investment strategy that describes projects and activities to be undertaken..." As described in ORS 2858.239, 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. .] 1 k y. [ O` - ,i7W=` e- iN Grr ..'"'' ''-S4.1R", '"'• y ' . {i+`Mi i,'L.6hI4J-0 ', %i 4i3: i. .E.. ry 3Y� ... u. ,-... +5{7 -moi. C 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/Industry 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) Prima Industries in Central Ore • on Crook Agriculture Distribution and Warehousing Education and Health Services Leisure and Hospitality Wood Product Manufacturing Deschutes Computer and Electronic Manufacturing Recreation and Transportation Equipment Manufacturing Transportation, Warehousing and Utilities Education and Health Services Professional and Business Services Leisure and Hospitality Jefferson Wood Product Manufacturing Agriculture Education and Health Services Manufacturing (including wood products manufacturing) Recreational Equipment Manufacturing Govemment (local, state, federal, tribal) Source: Economic Development for Central Oregon Central Oregon Comprehensive Economic Development Strategy Regional Investment Strategy Page 8 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. Many 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 govemment 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 jobs. 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 dean air and water. Sunshine, hospitable climate. Outdoor recreation opportunities/public lands. f. Other Amenities Improving/increasing cultural opportunities. Housing — large numbers of upscale houses, high degree of housing availability. Upscale housing brings money into the region in specific ways. Specific economic and social amenities — Redmond Airport, Deschutes County Fair and Expo Center, Mt. Bachelor and numerous resorts. Medical community — a Targe offering of high-quality facilities and providers. Low crime rate — safe neighborhoods. Communication system — 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 Regional Investment Strategy Page 9 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 Businesses Workforce — quality and quantity varies throughout the region, and by sector. Workforce 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 someparts of region the cost of lands for housing is very high. c. Strains upon the Workforce Economic stratification — a strong service based economy results in low wages and a 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 jobs. High poverty rate — and specifically 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 allocation system not suited to current needs. Lack of a regional water use plan g. Education and Training Challenges Limited support for public schools — variable throughout the region. There is a concern that many 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 leaming 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 Regional Investment Strategy Page 10 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 Altemative/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 Extemal 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 emigres, 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 teaming 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, govemments, 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. rlt� `� l �� X"c F Ob ectives: rt f 1 lff a. Build the infrastructure to su • • • rt and • row strat- • is indust clusters ! y�,!1•i•I 1.i,1"I.�yc•Ut•inni►k:I, ij -I +-1 • • 0:' . . • - • ' l• ___L311_!1LWit:WA1.1.1_ • 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. • Su • sort the develo • ment of cluster coordination/develo • ment ca • aci • Develop strong and sustainable regional and local marketing programs to highlight regional and communi assets b. Facilitate new job creation and economic diversification through recruitment of diverse new traded -sector com • anies across all industries that offer famil -wa • e em • lo ment c. Facilitate new job creation through expansion of existing traded -sector companies across all industries that offer famil -wa •e em.lo ment d. Support retention of existing traded -sector companies across all industries that offer family -wage em • to ment e. Develop regional economic development planning and programs that recognize differentiation among the r- •ion's communities Central Oregon Comprehensive Economic Development Strategy Regional Investment Strategy Page 14 . 1-0_,3 U`i 1'�bv f f.� :lf ) 4\..�"2�a�]X,��- yy -(i�, ,§}1.ti 1, {{,�.. ppa�y 15:- 'r. 's -l� .l 4 2. h y,� y p i .. _ �j n� 4 rn::. Z-^+1 Ql ti�ti� G��.(� ,�-„�,,� � �j 1C f� �'` �l`FfZ PI �, \\:..[ OSE (: r( 4 S� Sf`.. " 5 ...i F' 1 ViV0,514 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. p. g. Sustain the region's status as Entrepreneurial Mecca for the northwest (resources, expertise) q. h. Implement and expand business administration BA and/or MBA with emphasis in entrepreneurialism r. i. Nurture companies to prepare them for venture capital or sustainable operation ; e.g. microcredit programs, technical assistance, business planning 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 linka•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 bu in• and sellin• k. Promote the develo • ment of local) -.roducts • roducts and services for local consumers I. Protect workin• Iandsca•es to • rotect Central Or- •on food and fiber resources m. Develo• a re•ional clearin•house/network to link local investors and local investment 0. •ortunities. n. Develo• a diverse set of affordable local sower 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: t l 1f,E o. ,ri,,,,c_.-& .�{t 2Fi?i€[ %�� � "�tEFik<� i; el i r fir l� �� �4t.": �i€t .is f l;.c}rlt 1 �, , ,E :r ,Objectives: Improve regional equity in access to education - expand focal community college educational opportunity through (a) campuses in outlying communities, (b) transportation networks, and (c) distance learning innovations supported by expanded communications networking, course development and student support systems p. Improve the regional workforce by leveraging financial support and improving linkages between private business, workforce development agencies and education institutions q. Improve and expand workforce training opportunities for job seekers and incumbent workers (entrance/pre- employment): upgrading, business efficiency, retraining, altemative career training r. Strengthen integration and efficiency of the K-20/CC/UniversitylWorkforce Training continuum \r t $ ( Objectives: l,it{J{V s. t -.p.) F1[.i 1tl {. i{� Lf 1{ 'I'liV[h f' <10,--,;;Z).,-;ii F �sF...e �C if t � �r {) f�F! "f C i,��t 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 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) Develop local plans that define regulation, zoning and/or incentives to produce affordable housing; develop w. Central Oregon Comprehensive Economic Development Strategy Regional Investment Strategy Page 15 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. ) int, kms} ktt E�[tEt 7 1t! f. 6:l k 11,E, ,If[ Objectives: aa. Develop a water management plan to restore stream flow while meeting the needs of agricultural, municipal and industrial users bb. Implement non -point source pollution reduction measures in both urban and rural areas S 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 reduce sprawl and facilitate efficient transportation ee. Maximize working landscape retention through rural land use policies ff. Delineate and preserve critical wildlife corridors gg. Identify and preserve valuable recreational lands Objectives: hh. Capitalize on opportunities to utilize small diameter forest and rangeland fuels to protect ecosystems and stimulate resource -sector jobs 1 ii. Encourage land management practices that allow agricultural and forest producers to take advantage of "Green" niche markets (e.g. Oregon Country Beef, Forest Stewardship Council) �s�1` �c}.'. ' r s Objectives: �_..•., jj. public-private partnerships to ensure the long-term supply of affordable housing for the workforce in all communities Implement strategies to reduce regional greenhouse gas emissions x. Develop opportunities for incentive -based employer -assisted housing programs Implement strategies to reduce diesel particulate matter emissions y. Preserve existing affordable housing stock Manage regional smoke emissions from wildfire and prescribed fire to minimize health impacts 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. ) int, kms} ktt E�[tEt 7 1t! f. 6:l k 11,E, ,If[ Objectives: aa. Develop a water management plan to restore stream flow while meeting the needs of agricultural, municipal and industrial users bb. Implement non -point source pollution reduction measures in both urban and rural areas S 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 reduce sprawl and facilitate efficient transportation ee. Maximize working landscape retention through rural land use policies ff. Delineate and preserve critical wildlife corridors gg. Identify and preserve valuable recreational lands Objectives: hh. Capitalize on opportunities to utilize small diameter forest and rangeland fuels to protect ecosystems and stimulate resource -sector jobs 1 ii. Encourage land management practices that allow agricultural and forest producers to take advantage of "Green" niche markets (e.g. Oregon Country Beef, Forest Stewardship Council) �s�1` �c}.'. ' r s Objectives: �_..•., jj. ! ` lttti t}r1;fE-1 tF tJt; f ' £�, i 3 t[ � t ? j_ r, Implement strategies to reduce regional greenhouse gas emissions kk. Implement strategies to reduce diesel particulate matter emissions II. Manage regional smoke emissions from wildfire and prescribed fire to minimize health impacts Objectives: mm. Illustrate how a quality environment can attract high -wage, knowledge-based industries; skilled and educated workers; in-mi•rants with si•nificant 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 intergovemmental 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. Objectives: nn. Develop an integrated Tong -range transportation plan for the region, which coordinates and integrates local •tannin• for all trans iodation modes rail, air, roads, transit, bic de/•edestrian P •r • /• !]�I•]!•IF(•i9•IU•FlIC•LUI•]1111=!Je.1(41p21. lCaC•711C��•]ulul11t11[•1j •[Y•]l1110TII[�ll�l[�• Central Oregon Comprehensive Economic Development Strategy Regional Investment Strategy Page 16 �=€ 'j„kt ♦. i,C: Lci4 workforce Objectives: pp. Develop and/or improve intermodal facilities for the efficient movement of goods and services ccc. Encourage and promote innovative, bold approaches by local govemments to achieve resources necessary to support adequate infrastructure for economic development (e.g. increased gas tax, issuance of bonds for infrastructure) qq. Secure funding for backlog of transportation project needs, as per COACT project needs list �=€ 'j„kt ♦. i,C: Lci4 : tict,.a,-t!E f1: : 9-'A' .. )X'S ;;{F. 5 e ,4 i A,- Da fie k. f,x:. '',. s q.. -,. , i1, Objectives: rr. Develop an adequate supply of affordable commercial land in Central Oregon communities ccc. Encourage and promote innovative, bold approaches by local govemments to achieve resources necessary to support adequate infrastructure for economic development (e.g. increased gas tax, issuance of bonds for infrastructure) ss. Develop an adequate supply of affordable industrial land in Central Oregon communities tt. Develop an adequate supply of affordable residential land in Central Oregon communities Objectives: uu. Identify infrastructure deficiencies and capacity needs and develop financing and implementation strategies for infrastructure construction a community and a regional level vv. Construct and/or expand infrastructure facilities in high-density areas and extend infrastructure to areas within urban growth boundaries. 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: Objectives: xx. Develop an organizational structure that provides a forum for ongoing regional planning dialogue across issue areas (e.g. housing, transportation, and economic development), and identifies opportunities for inte•ration of •Tannin• across issue areas. yy. Develop a regional growth strategy integrating planning for economic development, transportation, land use, workforce, housing,, and natural resources zz. Encourage cities of the region to establish programs to monitor on-going absorption of urban economic 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 develo • ment. eee. Su • • ort the develo • ment of communit leadershi • fff. Encourage and facilitate public officials to attend ethics training or seminars (potentially provided by AOC, LOC or COCO ggg. Improve dialogue between local government and public; educate public about value of public services, what cities/counties are doing,, local •ovemment •olic decisions. Central Oregon Comprehensive Economic Development Strategy Regional Investment Strategy Page 17 aaa. Develop strategies to tap into philanthropy and retirees; Objectives: 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 govemments 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 eee. Su • • ort the develo • ment of communit leadershi • fff. Encourage and facilitate public officials to attend ethics training or seminars (potentially provided by AOC, LOC or COCO ggg. Improve dialogue between local government and public; educate public about value of public services, what cities/counties are doing,, local •ovemment •olic decisions. Central Oregon Comprehensive Economic Development Strategy Regional Investment Strategy Page 17 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): 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: 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 Oregon 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 Regional Investment Strategy Page 18 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. County _..Gllut-4,3 x?.'.n. 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, andthe 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: 7.110101= AARP Bend Area Habitat for Humanit Bo s and Girls Club Central Oregon Battering and Rape Alliance Central Oregon Resources for Inde • endent Livin • Central Oregon Veteran's Outreach Deschutes County Commission on Children and Families Deschutes County Healthy Be•innin•s Haven House KIDS Center Neighbor Impact Prineville Senior Center Residential Assistance Pro.. Senior Citizens of Jefferson Coun Al ce Hatch Center Bend Communit Center Brid•es to Ho•e Minist Central Oregon Council on Aging Central Oregon Partnership Crook County Family Resource Center Crook County Commission on Children and Families Early Intervention Health Start La Pine Senior Citizens Inc. Opportunity Foundation of Central Or- •on United Senior Citizens of Bend Salvation Arm Sisters Senior Council ARC of Central Or- •on Bethlehem Inn Homeless Shelter CASA of Central Or- •on Central Oregon Intergovernmental Council Central Oregon Family Resource Center Crooked River Ranch Senior Group Jefferson County Commission on Children and Families Grandma's House of Central Oregon J Bar J Youth Services Lutheran Famil Services Ochoco Community CliniclOchoco Health S stems Redmond Council for Senior Citizens Soro•timists Int I Socie of St. Vincent DePaul @X )FlS £i65i(i Confederated Tribes of Warm S•rin•s Latino Communi Association HAABLA Human Dignity Coalition Cities Counties Confederated Tribes of Warm S•rin•s Economic Development Or•anizations Special Districts Central Oregon Comprehensive Economic Development Strategy Regional Investment Strategy Page 22. 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. 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. Total 19,182 115,367 19,009 153,558 Senior 65+ 2,818 14.6% 15,089 13% 2,363 12.4% 20,270 13.2% 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% 11,561 9.6% 2,692 13.9% 16,610 10.8% County 1:2,.s. 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 Toss 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 Tong -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. 1 Source: US Census, 2000 Central Oregon Comprehensive Economic Development Strategy Page 23 Regional Investment Strategy 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 retums, 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 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 Govemor 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, Central Oregon Comprehensive Economic Development Strategy Page 24 Regional Investment Strategy Oregon Economic and Community Development Department, Central Oregon city and county govemments, 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 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 Tong -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 Tess 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 GMP. 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 eamings. 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); number of industrial sites certified as "project ready." 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: Jobs Created or Retained, Short -Term 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 year) $195,547 Number of Community Capital Projects Assisted 9 Number of industrial sites certified as project ready 2 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. Central Oregon Comprehensive Economic Development Strategy Page 27 Regional Investment Strategy City of Sisters Westside Wastewater Pump Improvements Desert Rise; Phase II and III Infrastructure Industrial Park Roads and Rail Spur Upgrades North Pointe Pump Station Upgrade or Gravity Line 18th St./Empire Avenue Intersection Roundabout Improvement 18th St. 16 -inch Water Transmission Main Employment Lands 1 City of Sisters City of Redmond City of Madras City of Bend City of Bend City of Bend imp Wastewater system improvements needed to facilitate development in USFS property and areas west of Hwy 20. Construction of street and utility infrastructure to enable development of 83 acres of industrial park land. Improvements to roads and rail spur for industrial park site. Update pump station to meet City infrastructure requirement for 90 -employee Pacific Power regional service center. Intersection improvements to solve transportation issues at key regional employment center Provide infrastructure necessary to produce adequate water supply to Juniper Ridge employment center. h- 000'osti't/000'osc'i$ in. W O O O W W O O O O IA N o O O N 00 O O O O $331,500/255,000 $2,483,904/2,183,904 $1,193,700/716,220 (DQ D pj D n -0 a3 0- f CD .o. o -o (Dc- AZ O c c- _2 v c o CO a z ' cl et) O a OA 'a (0 0 -I N v, 03 0 S O CD 0 0 �+, (D O' n O CA �• d ,- ,may. .-t (D O ,-g Q ►� 02, O 811. -' 'O+ N O tn O. 03 �* ,.y. O Q H Q (D < 3 pr. (D c OC lD O O pOq O N -. O NO n cl 3 0 (OD cn O. IV co IV (D CT N O O• l -s c\D 3 O. (CD N a% s (D m ao ,3 -rt �' D (D fD• �� Q 5 a.a n Cid (0 v , -+- O n au 7 O. 0 y 1..I d O' • O C (D (D y m °« 0- a to FL d N 0 a �. co CU A. rD s y (0 c mr.( o n =+: do w a o' 0O N .O -r '+ .to n1 O Q" O n (D sG CD iii n n 0 3. < + y \ Q N 0 = O .-r m 3 N ? O N3 O * 3 0- d (0 O (D O 3 a 04 LA O CD 04 OA Cl) sp Q = ntn 3 v, a K O O. (D Q 0 O• •1:3_ m 3 o a' n s -' n Q N 'B (D "s -0-,. vOi r O: O O N -* O -h CL 3 n 74: O 3 ts CD n SU Ts 3 CD N O O v y Q 3 -� O G ? �' (D p� c (D Of O_ •• CD 0 3 r+O ? O� — rr OP 0 0 - CU 00I-1 CD O p N Z O) O rt n 7 d S 3 (D co 3 c rt ctIt 5. �- ro .-r 4-4 O rr -s d00 N CO 0 - CD 7 H rD v, St CL cri (D d 3 133 °, �03 VI + - e -l• fp -0 D) - O O O .0 N = H• In .0 n O 00 CD v, A i 3p.... o Q v 0 (0 a E ^� NO9118IYNUNIO SE 9th St. Arterial Link Project Crooked River Wetland — Design and Engineering Phase City of Prineville Water Storage Project Phase 1B, Segment 2, Effluent Treatment North Madras Sewer Collection Project Central Corridor Stormwater Collector Project US 97 LaPine Corridor Wastewater Treatment System Expansion Southeast Interceptor Water Reclamation Facility Secondary Expansion Project Surface Water Project - Conveyance Pipeline Surface Water Project - Treatment Options al e. ep "R C n ep R (D Industrial Park Sewer Extention ,:,,�� 3 fl ygg pp iH P r i �i�i+1LL'w��i1Rs ���)��f'n�a���,.n,. m.u:Liu�F��:,,.:�;�Le<ao .., r',. airk�Yi tib �✓.r_:.:� Forest Service Property Development Concept City of Redmond City of Prineville City of Prineville City of Madras City of Madras City of Madras City of LaPine City of Culver City of Bend City of Bend City of Bend City of Bend Warm Springs City of Sisters Transportation infrastructure improvements to facilitate industrial park development. Plans for construction of an effluent disposal wetland. Maximize current water storage capacity, and construction of 3 new water towers to allow for significant new development Installation of irrigation and surface improvements for a land application of treated sewer discharge. Expand sewer main capacity to support new development. Construct major stormwater line through downtown corridor; construct pretreatment at terminus. Streetscape, traffic calming, and access control improvements to the US 97 Corridor in LaPine. Add capacity by expanding the lagoon system; addition of third storage pond Development of sewer system interceptor to increase capacity of infrastructure serving the downtown core. Design and construction of a secondary wastewater treatment process to accommodate UGB growth. Update transmission infrastructure for Bridge Creek surface water. Development of water treatment system to treat surface water from Bridge Creek according to EPA rules. Sewer extension will allow higher -density development of industrial park A redevelopment plan for 65 acres within the City limits. in. O O O O O0 O 0 0 IA A VI O 0O 0 O W 0 00 VT VI O O 00 00 O p in. Sn O O O O \\\ V1 0 O O o V) 1-' COW (n O O N (�r1 O O IA N In O O O N V N O 0 Vf W (J1 O O O W O O O O $1,225,676/TBD 11)-4./1- W :" 0 O O O O \Vt IQ Ol 4o. 00 00 O 000'008't'Z/000'OOZ'6Z$ $28,200,000/25,100,000 N :0O 0o 0 .9 O O \ NJ V� al O 0 0 O in P O O O I--' 0 0 0 O ii").01 V A (0 O? O ...... r`st Wastewater Master Plan Update City of Madras Creation of master plan for overall wastewater $200,000/180,000 system overhaul. Regional Transit Master Plan COIC Biomass District Energy System COIC Feasibility Study Linking Folks, Farms and Food COIC 1 Community Readiness & Capacity Building OSU Cascades — New Building Purchase OSU Cascades Technology Education Center - COCC equipment purchase Workforce and Education 1 Redmond City Civic Center - Evergreen School Depot Museum Master Plan Police Station — City Hall Central Area Plan Redevelopment, Brownfield and/or Downtown Revita Kah-Nee-Ta Wastewater System Campus/Downtown Sewer System Replacement Campus/Downtown Water System Replacement Dry Creek — Water Treatment Plant Expansion — Phase I Eastside Sewer Interceptor Project: Oak to Antler yR f• L City of Redmond City of Metolius City of Madras City of Bend Warm Springs Warm Springs Warm Springs Warm Springs City of Redmond ;6. Regional transit plan for Cascades East Transit $182,000/145,000 system •uolteolldde Jarrod pue;eaH paulgwoD e ul 'swatsAs „AA iaua 1.3l.itslp„ OOS'L£$/000'SL$ sseuaolq aoj ueld ssaulsnq pue Apn}s Amglseaj Establishment of a food sector cooperative, "Buy $652,433/300,000 Fresh" campaign, pilot garden site at St. Charles, and a farm directory. A new campus building is needed to add capacity for the growing student enrollment. Purchase specialized training equipment for new Technology/Education center. Renovation of abandoned historic high school facility into a public civic center and City Hall. Master planning for development of museum at historic RR property owned by City. Construction of a new combined City Hall and Police Station. Process to plan redevelopment of "urban" employment lands in the Central Area. o.o Upgrade resort wastewater system to meet DEQ requirements Necessary sewer system upgrades to facilitate development of downtown core Necessary water system upgrades to facilitate development of downtown core Wastewater treatment plant is at capacity and needs expansion to facilitate new development Develop sewer infrastructure necessary to service new development at several industrial parks ih P l0 tD 0 p O O in b O O t/:• I -A N i." 0 O O O 0 O O 0 0 O i/► F -k I O 4N :n O O O 0 0 O O O O 000`sz$/000'0£$ $8,853,907/5,840,481 000'£08'I/OOO'£06'T$. VI, ? .A 0 O O O O \ W UJ 0 O O O O VI- N ? N O O O O \ 1-+ 1,4 I- O O O O to 1- oo to O O O O � W W 0 i/: V1 O 0 O O O O 1- U'1 O O O O tR N in 0 O O O O - N in O O O O nsv. ;- :'- ;. Headworks at the Sewer Plant Airport Runway Extension Demers Road Construction and Utility Installation Culver Highway Sewer Collector Project Madras Municipal Airport Aircraft Hangars WWII Hangars Preservation First Street Improvement Project Stormwater System Development Community Center Facility Emergency Homeless Shelter -' i H f fp City of Metolius City of Madras City of Madras City of Madras City of Madras City of Madras City of LaPine City of Culver City of Culver Deschutes County U v Installation of headworks at sewer lagoon to remove undesirable materials, and lower treatment costs. Enlarge the main runway and related re -alignments to meet FAA guidelines for type ADG III and IV aircraft. Road construction to open up 50 -acre state -certified industrial site. Construction of a new and larger sewer collection main from the B street pump station south to near Fairgrounds Road. Construct 9 -bay hangar to help retain existing businesses & market facility. Restoration of two WWII hangars to ensure safety and allow ongoing business use. Connects school, downtown/commercial, residential areas, and Highway 97 with sidewalks. Development of a city-wide storm sewer collection and treatment system Development of a combined Community Center/Library to serve the Culver community. Development of a permanent regional emergency homeless shelter (current Bethlehem Inn is located at a temporary facility). i2 yam_ ISIr. .(/) 1-4 O o o I-1 o O . N Ln O O o ... o O P o IA. N c0 O O O 0 2---�cri o o 0 (/I- N Ni O O O 0 N O 0 0 000'OSS'S/000'OSL'S$ i/t I--'• N (J' O O 0 �Ie o 0® 0 V) .P O P O 0 . O 8 V► JI -, O 0o A p W v TBD/TBD TBD/TBD ism = _ :o w 3 a fD (D N (D 0 h 3 0 (D a 0 .3 0 CD (D 0 0 0 C) 13 0 (D rt (D a 0 0 3 s (D h c) (D CL 0 N N W N " (0 N D ora v H CD Z.' r) O v 0 • -. 0 -17 a 0 O 3 cufD m 0) z m 3 0 r+ cn rr CD H 0 3 3 O (D s rF CD 0 rt N N 0 "h N N r+ (D H (D a A • - 0 VI 3 3 r+ (CD a (0 0 0 0 r.+ m 0 0) tD N. 0) 0 0_ Crt c 0 A rD 7 h (D (D "a 0 A a < rn 0 N r h O fD N • N O n 0 D O O a VI r+ O (D (D 3 • a m • 0 r4 O tD a r* rP CD C o 0 rho CD 0 rr coo 0, A c 0 rpn • o m • a a • z N O.h 000`SE/000`5£$ 000`LI/000'LI$ Central Oregon Regional Workforce Analysis Regional Park & Ride, Bus Stop Infrastructure Sisters Workforce Housing/Land Acquisition Workforce and Education Museum/Plaza II Pre -approved Spec for Industrial Building Business Assistance/Industry Cluster Support Simnasho - Multiuse Facility Commercial Core Improvement Plan Depot and Downtown Revitalization Huntington Road Downtown Streetscape Redevelopment, Brownfield and Food Bank Facility Construction Redmond EcoDistrict Crooked River Ranch Community Center Uncle John Ditch Fish Screen Transportation System Plan: Alternate Route ( E ,� lt, , .� iGaifr.�,t.:11 E. _I t.i d.r....PE.,.E���.�t.mr: air mw,au s;6E.. Prineville Community Swimming Pool 0 F 0 n City of Sisters Warm Springs City of Sisters Warm Springs City of Prineville City of Metolius City of LaPine /or Downtown Revitalization LaPine Comm. Kitchen Hix Rubenstein Companies Crooked River Ranch City of Sisters City of Sisters ku5 t t5 ¢r v " City of Prineville /County Parks Data -driven tool for workforce and economic development partners to use in recruiting/expanding businesses. Development of a network of park and ride Tots within region Purchase land for affordable housing for workforce. Will allow anchor tenant to come to existing facility. Creation of pre -approved package of facility, spec, and cost for easy presentation to banks/financing and expedited approvals. Will create a community space for offices and public services. A downtown redevelopment plan to ensure that the core remains a vibrant commercial core. Revitalize area around downtown; paths, lighting, update landscape, redevelop roads and sidewalk. Historic downtown redevelopment to create a community space away from Highway 97. Construct new facility to improve food safety, sanitation, and accessibility. Development of an "eco -district" mixed use development on the south side of Redmond. Build community center to enhance livability and provide a retail space for crafters, etc. Install fish screen on irrigation diversion to avoid ESA liability (steelhead). Develop a flexible alternate route for Hwy 20 traffic during peak periods. i �J''h{ iU y l� it li t 1(i � 7 Ei E 1 city pool to increase community cting and retaining businesses. cn o 0 0 . VI o o 0 _ TBD/TBD TBD/TBD C e o 0 o o 0 p 0 0 0 0 0 0 U' o o 0 0 IA 0 o 0 0 NJ o o 0 o o 0 0 p 0 0 0 ( 0 0 0 ¥ m 0 $130,000/TBD e o 0 0 o o 0 o o o 0 0 « (Al . 0 0 0 » 0 o TBD/TBD W o #0 0 0« o o « 0 0 o c- o « o 0 0 W o 0 0ul TBD/TBD :w \IA @.. w p=1 o \�§ 0 0& o - o® o c.» m o 0 0$ o> � � �� onc- a -(D ((00000= * C(D o m 3 c D 3 �° 0, O- (D fp < 3 c a 3.o za (0 c (D —�+ a' Q ^ as 3--',- 3 N. 3 _o .*r.o n 0 �O O C ��t Q a' A O O E Orr n -, Q°' a nQri,..IO 0 vii ..< S. N Q O N N -4. °� 00 O -0 ((D�� -0 vai Gi O(� Q a O O .--i O, O N N c+ N a c r« '_* D' n 0 0 N (D c < n 0 N a .-+.*. A u 3 m e Q- (D O .,. O .', -z .-r 5 (D 3 .-. rr ._' 'a = O S n Q O t'*D 3 3 `m' ,o (D N n O .< (D Q (o h c ,* O �1 - � cue-Ir2 N 7" N ? —{ N ,. O O N ? n 0 (D O' c a, c a m p Di 3 c am p- 0 o 'a O O- 2 n (p — °i --, -) m a- m r* 3 vim, dE Vn an d D -4, v c 0 (D .1 N y , H 0 0 0 �O 3 (D N D) O. O N N O O O� O , (D ,n.. • • �^ vii H N O eN-r c O S N to .ti. = n = fp -i O 7 p 3 C act 5 co O_ 'O on p (D mn fp .ti, fND N =- Nf = O" O .N-. vii 7 N 3 (D 30 [D f N (D 313 !� c — Q C Q (p' O 'a Ow = p- O .t O p- j O =. v C5 N N O CM O S (D N ora 74: 0 0 3 .2,.3 d vi r. 'a (D p (D r. 3 .... ...I ", -p (n rt N 'O Q N ffDD z N N O = (D (D (D --% �O N w z (D n 4 ,c r+ (p fl G7 �* vii Q „ M o(n Qv c (, c- o .. - (D "O a) c = O OQ. N (0 6CO �' O(D . A c N o. -. co N -, (D A .* 174. CD Q- O-, is. c • a = .N-4. .-1.((D N? Cu O 7= N N O 'a IDD c '< „...,a) '+-6 O ci o r.-• a d v= O (D 7 a aM Q n -p (D = 04 0! ,-F (.0) (D aO00 _ < 3 n o D o s = (D . a) (0 N 0 -1 a_ m s N — (D Whychus Creek Watershed Restoration and Enhancement 0 fD Food Sector Feasibility Study Regional Telecommunications Infrastructure Assessment City Website Development Community Readiness & Capacity Building Work Force Development - Pacific Crest Trail Maintenance and Improvement Program dd� a� t � �zV �'irdst �Y k dirt Work Force Development — Building Code Inspector Training City of Sisters O F) O n City of Metolius a 3 v 5 00 N oo,, Pry fa eta , • Warm Springs Various restoration efforts to protects property from erosion, restore creek, and increase recreation and tourism. Analysis of production, processing and distribution infrastructure needs for agriculture& food production sector. Analysis of the quality of the region's telecommunications infrastructure, including analysis of broadband availability, pricing, reliability, and services. Develoment of web portal to communiity, owned and maintained by the City. Will employ tribal youth and young adults & teach life and employment skills . .t�o s, r * rt• .k.F.' .yr 1„ llIR 7bt}=gd t o Will produce local building inspectors in order to facilitate quicker inspections for new development $1,125,000/562,000 V} O W FI 0 0 O V> tri O — VT N U-1 O 0 0 0 $5,000/2,500 V! 00 V 00 0 0 00Z'£t7/000'£8$ �s fF%Ix!&,N� ����s is it. Redmond Transit Infrastructure Transportation System Plan: intersection improvements US 20/Cascade and Main Ave. Improvements Millican Road Industrial Spur 9"' Street — Laughlin Extension Tom McCall Intersection Project Safe Routes to School Willow Trail Creek Bike & Pedestrian Project US 97/26 Corridor Streetscape/Bike and Ped US 97 at Fairgrounds Road Signalization & Pedestrian Xing South Y (Hwy 97 at 1 Street) Westside Transportation Improvements n u per * f^ t-�i" Murphy Road Overcrossing: Frontage and Collector Streets n 0 Fi City of Sisters City of Sisters City of Prineville Railway City of Prineville City of Prineville City of Metolius City of Madras City of Madras City of Madras City of Madras City of Bend v � t7 b 4 w�j City of Bend Development of transit stops and other infrastructure for fixed route system. Intersection improvements at east and west ends of Sisters. Bike/ped and vehicular improvements to create a safer, nicer environment for economic development opportunities. Build rail spur to provide heavy transportation infrastructure to support future heavy industrial and distribution center development at industrial park. Construction of a new east -west corridor through Prineville. Facilitates development of Ochoco Lumber and other sites. Key industrial intersection upgrade to improve safety and facilitate development. Development of walking/biking paths between school and downtown area Completion of major bike/ped trail system. Stormwater management, traffic flow, bike/ped safety, and downtown appearance improvements. Installation of traffic signal and pedestrian improvements at busy intersection. Highway realignment to address highly accident-prone intersection. Improve and enhance multi -modal transportation system access and connectivity on the west side of Bend, including the design and construction of roundabouts and corridor improvements. . { -� z iqa {jS� YJ If Y i3 ?3 .lz'� 5 3 Development of road access/connectivity to mixed use/ commercial area in the Murphy Road Refinement plan area. TBD/TBD TBD/TBD W o o o 0 0 o 0 N S.4 O 0 0 F-' A O 0 0 0 $6,000,000/TBD TBD/TBD 000'ovv'z/000'oos'z$ UJ O 0 0 0 0 N o 0 - 0 0 0 F-' o 0 KI0 0 0 0 N 0 0 0 P 0 000'oos'si/000'000'ci$ 4 � Peter Gutowsky From: La Pine Industrial Group <Iapineig@uci.net> Sent: Thursday, October 27, 2011 4:29 PM To: Peter Gutowsky Subject: Re: La Pine Prospect Peter: I just returned from a three-day business trip to northern Idaho and did not have a chance to provide the information about the La Pine Industrial Park before I left. I don't know if you can still use it but here it is: We have had several companies look at our certified 77 -acre site in La Pine but the most active prospect was the Ferguson Corporation out of Virginia. They were looking for a site for a Northwest distribution center for their product line of bathroom and other plumbing fixtures. They wanted a site that would accommodate an initial 500,000 sq. ft. of buildings and would be expandable to 1,000,000 sq. ft. Initial employment was to be 200 workers, expanding to 400 in the second phase. There was also a requirement for a rail spur with extensive on- site trackage to move products in and out. They were not sure our site was large enough so Midstate Electric Cooperative developed a site plan to show that it could meet their specifications. Unfortunately, the company decided to locate in Richland, Washington. Richland offered the company a larger site for $7,000 per acre fully developed. We could not match that. By the way, the company was a State OECDD prospect and they brought the Ferguson site selectors on the tour of Central Oregon properties. Lee Smith General Manager 541-536-9042 Office Phone 541-410-0886 Cell Phone i MEMORANDUM JOHNSON REID LAND USE ECONOMICS DATE: October 21, 2011 TO: DESCHUTES COUNTY BOARD OF COMMISSIONERS 1300 NW Wall Street Bend, OR 97701 FROM: Jerald Johnson, Johnson Reid SUBJECT: Response to REOA Critiques and Questions Submitted by 1000 Friends of Oregon Over the last few months the Commission as well as Deschutes County Planning Staff has received a series of correspondence from 1000 Friends of Oregon with respect to the Central Oregon Regional Economic Opportunities Analysis. These include the following: • August 11th Letter, Pam Hardy, Staff Attorney, 1000 Friends of Oregon • August 18th Letter, Pam Hardy, Staff Attorney, 1000 Friends of Oregon • September 19th email, Mia Nelson, 1000 Friends of Oregon • September 26th Memorandum, Pam Hardy, Staff Attorney, 1000 Friends of Oregon • October 5th Memorandum, Pam Hardy, Staff Attorney, 1000 Friends of Oregon We appreciate 1000 Friends input on the document and participation in the process to -date, and share their support for increased regional cooperation and an improved economic development environment. This memorandum provides a technical response to many of the issues and/or arguments outlined by 1000 Friends. The following is a basic summary of the issues/questions raised in the correspondence: ■ No evidence that large industrial lots mean many jobs ■ Are jobs from large lot employers better than those from small lot employers? ■ Conflicting evidence that large industrial lots would result in a net job loss in the region ■ Insufficient evidence that large companies would set up shop in a community like ours ■ Table does not reflect a need for large lots ■ The findings are greater than the identified need for the Portland metro area GENERAL COMMENTS First of all, I would like to speak to the inherent lack of precision in any forecast of land need over a twenty year planning period. I am aware of no forecasters that would express a high level of certainty over a forecast of this duration, particularly as it pertains to employment. The variables that factor into a projection of land need for employment include the following: ■ Employment growth by sector ■ Operational characteristics of a wide range of firm types 316 SW Washington, Suite 1020 Portland, OR 97204 503/295-7832 ■ National/International production chains o Absolute and relative shipping costs over time o Shifts in currency exchange rates, relative labor prices and international regulations ■ Technological changes o Shifts in production techniques and requirements Over the next twenty years, 1 would expect that the Western United States and Central Oregonwill see growth in sectors that do not even exist at this time. Existing as well as new industries will likely have operational characteristics significantly different from their current operations, with a commensurate shift in the character of space needed. Shifts in national and economic production chains will likely shift what are viable industries to target for the area, while technological shifts will alter the economics of production, including returns on scale, necessary infrastructure and locational requirements. I mention all of these factors not because they are known, but because they are unknowable over the forecast period with any degree of certainty. Nonetheless, the land use system does require jurisdictions to produce twenty year projections based on reasonable and rational assumptions as well as the best available information. We believe that the REOA clearly does this, relying heavily upon the most knowledgeable professionals available and gathering input and comments in public forums. Recognizing the inherent uncertainty in producing a 20 -year forecast, the REOA recommends that the County focus on maintaining a readily developable short-term supply, with a mechanism for maintaining that supply. In addition, we would strongly recommend that periodic review of what an appropriate site inventory would be, incorporating input from industry specialists. From an economic development perspective, short-term availability of a range of appropriate sites is what is critical. The supply for the longer planning period has limited immediate impact on economic development prospects, although it can be useful in anticipating likely areas for replacement of inventory if consumed. Traditional approaches to project employment land needs evaluate the land market in a simple algebraic relationship, converting projected employment growth into associated space and land needs necessary to accommodate that growth. Our approach in the Central Oregon REOA was to look at the potential for the region to compete for firms making locations decisions that are exogenous to the employment trends in traditional forecasts. These are typically national or international firms making location decisions that consider locales in the broader Northwest or Western United States. Recruiting these industries is not a "zero sum game", for Central Oregon or the State of Oregon. If for example a firm is attracted that would have otherwise located in Spokane, it is a net gain for the Region as well as the State. Maintaining a competitive inventory of sites is a sound economic development strategy. Being "competitive" does not always translate into being successful, but it does increase the likelihood of success. The focus of the findings of the REOA is that establishing and maintaining a competitive portfolio of large industrial sites enhances economic development prospects in Central Oregon. The growth targeted by this supply is exogenous to the underlying employment forecasts of the region, and if not accommodated would not be expected to be realized. This is prospective or potential growth, and not growth inherent to the underlying trends in the region. Again, we are less concerned with the twenty year supply than maintenance of an adequate five year supply. PAGE 2 I have organized my response based on general issues raised by 1000 Friends, as well as some miscellaneous comments organized by specific letter. DEMONSTRATION OF SUCCESS IN OTHER SIMILAR COMMUNITIES • Ms. Hardy suggested that the REOA be expanded to include the experience of similar communities that have maintained large lot industrial sites as an economic development tactic. We believe that the current version of the REOA has addressed Ms. Hardy's comments regarding the ability of smaller cities to attract large employers. As outlined in Appendix 8, we have seen a number of similarly sized or smaller jurisdictions have considerable success in attracting Targe firms. RELATIONSHIP BETWEEN LARGE INDUSTRIAL LOTS AND JOBS • 1000 Friends contends that the case is not made that Targe lot employers create a strong and thriving economy. We would agree that attracting these types of employers is not a necessary condition or alone enough to create a "strong and thriving economy". The intent of the technical advisory committee in developing the vision statement was to state a desire to maintain this type of inventory. It was perceived by the group to represent an additional tool to broaden the region's economic attractiveness, but by no means to represent the entirety of their economic development efforts. The REOA sets the regional stage for the creation of large lot industrial employment potential and/or associated opportunities that otherwise would not be possible. • 1000 Friends asserts that the REOA assumes that large, established employers in traded sector industries are the primary drivers of job creation. As noted previously, the REOA does not assume that large employers are the primary drivers of job creation, although we would maintain that traded sector industries are primary drivers. The REOA's findings on large lot industrial demand reflect that accommodating these types of users reflects a reasonable component of an economic development strategy. As outlined in the REOA, these types of users are actively seeking locations, and Central Oregon to a large extent has been unable to compete effectively for this type of industrial activity due to site supply constraints. • We would agree with 1000 Friends research on "economic gardening". This concept is hardly new, and simply reflects a semantic if not substantive shift in economic development efforts. Start-up firms are an important component of economic growth, and have been for many decades. While larger firms in aggregate did lose jobs, it is important to recognize that many large firms expanded considerably during the period outlined in the 1000 Friends letter, and that many of the start-ups were established to serve the larger firms. • Again, the REOA does not diminish the importance of small, start-up firms. What it does do is note that these firms represent only a portion of the spectrum of firms, and a balanced economic development program would provide for these types of firms as well as larger industrial firms. The two categories are complementary, not competitive. PAGE 3 • In Ms. Hardy's August 18th letter, she includes a study she interprets to support the position that attracting a large, externally owned company would have a net impact of reducing employment in the area. The study, authored by David Fleming and Stephan Goetz, is used in a manner inconsistent with the findings of the study. The study included retail commercial employers, and the impact they found is largely attributable to "big box" and chain operations. The primary negative impact of large firms was associated with large retailers, not industrial users. While we welcome their call for further research on economic development issues, the specific study cited has no substantive findings relative to the findings of the REOA. FINDINGS OF NEED The recommended competitive large lot industrial inventory finding in the REOA is challenged by 1000 Friends. In general, we share their view that there is a limited ability for precision in such a speculative forecast, but believe that the recommendations in the REOA reflect a reasonable interpretation of best available information. The findings of need have been challenged in a September 19th email from Mia Nelson, with some of these arguments reiterated in Ms. Hardy's October 5th letter. The email included an Excel spreadsheet comparing a selected number of other EOAs that Ms. Nelson was familiar with. In the email, Ms. Nelson takes the position that the site need numbers are inconsistent with other EOAs evaluated. • The overall 20 year large lot industrial land need identified in the REOA is characterized in Ms. Nelson's email as representing an estimated 2,600 acres. This is based on the recommended long term inventory. It is important to remember that the report does not recommend adoption of the long term inventory, but only the short-term inventory. This reduces the total number of sites from 17 to 6, and the acreage to 725 using Ms. Nelson's methodology. RECOMMENDED COMPETITIVE LARGE LOT INDUSTRIAL INVENTORY 100 ACRES' SHORT TERM Number of Sites Jurisdictions LONG TERM 2 1 6 2 1 Number of Sites 10 5 2 17 Jurisdictions 5 3 2 • The study was an economic development driven effort, with extensive input from EDCO and Business Oregon. The recommended inventory is intended to reflect a regionally and nationally competitive portfolio of large industrial lots. The longer term inventory's value would be in identifying sites that can replace the short term inventory if absorbed or if market conditions and needs shift. The REOA does not recommend accommodation of the indicated long term need, but only the maintenance of a short-term inventory. • It should be noted that Business Oregon has had four active recruitments in the past six months in Central Oregon looking at industrial lots of this size. One firm was looking for a site in the 100 PAGE 4 to 150 acre range, while three have been looking for sites in the 150 to 200 acre range. One firm was lost due to the uncertainty of and land use actions that were required, and the properties proposed were eliminated from consideration. It is not known if the company has reached a final location decision. That search started in the 50 to 100 lot size and then expanded to the 150 to 200 lot size. The other three are still in the active stage and no additional details can be furnished because of Nondisclosure Agreements that are in place. ■ Ms. Nelson also cites a 20 -year employment growth estimate for the Central Oregon EOA that is less than that assumed for the City of Bend, which is included in the broader Central Oregon study area. This is based on a long term forecast included in the REOA (pg. 35) based on an extension of the Oregon Employment Department's 10 year forecast. The point of this REOA is that this is what is needed to perform better than this forecast. As stated later on page 35 of the report: However, State level projections are often demographically driven methodologies, developed for long range budgetary and government planning purposes. They very rarely reflect the qualitative economic development goals of local jurisdictions and economic development agencies. For example, as mentioned above, EDCO and the tri -county region have committed to the broad based recruitment, retention, and organic expansion of the region's Software/IT industry, which is generally under the Information NAICS classification. However, this economic development goal is not reflected in the State's forecast of Information employment. In other words, aspirational goals, policies, and dedication of resources have real direct impacts on the path of economic development likely in a local geography. • These aspirational goals were clearly reflected in the Bend EOA, and the State mid-term forecasts were used as context as opposed to being the basis for the forecasts for large lot demand. As explicitly stated in the report, the industries being targeted are exogenous to the region, and if attracted would not be expected to be reflected in the trended State -generated projections. • The following is a revised version of the Excel chart provided by Ms. Nelson. The chart has been adjusted to reflect the short-term lot supply only, as well as reflect a 20 year regional employment growth trend based on a proportional adjustment of Bend's growth estimate. Metro's analysis has been replaced by Hillsboro's, which is intended to address Goal 9. Metro's Urban Growth Report, which is not intended to be Goal 9 responsive, has an large lot industrial demand number well below the agglomerated demand numbers of its constituent jurisdictions. PAGE 5 120.000 Comparison of Recent Oregon EOAs: Job Growth vs. Large Lot Need -$-20-year Employment Growth t20 -year 50+ Acre Industrial Lot Need 1600 1400 1200 - 1000 Hillsboro Wilsonville Medford Bend Eugene' Springfield' BearCreek With these modifications, the Targe lot demand based on the rate of employment growth is not inconsistent with the limited number of case studies cited. LARGE LOT DEMAND ESTIMATE/20-YEAR EMPLOYMENT GROWTH 0.04 — — — — ---- -- — . _. 0.04 5 0.03 z 10 0.03 2 z 0.02 O a W 0.02 cc R 0.01 0.01 Hillsboro Wilsonville Medford Bend Salem JURISDICTION Eugene" Springfield' Bear Creek CO-REOA • Ms. Nelson's also contends that the analysis is flawed due to our use of the firm birth rate as opposed to net growth (less deaths). This approach does not reflect a flaw in the analysis, and Ms. Nelson appears to have misunderstood the nature of the forecast. The model was designed to identify the pool of prospective deals as opposed to net growth. As Central Oregon PAGE 6 doesn't have these firms and is looking to compete for them when they are seeking locations, the death rate isn't relevant locally. The model is designed to predict the number of prospective location decision that the Region has the potential to compete for. The level of decisions anticipated is consistent with the experience of the recruitment specialists consulted as part of this analysis, as well as the current level of recruitment activity in the region. • The preceding analysis is presented as a response to specific issues presented by 1000 Friends, but we don't view the argument in general to have particular relevance to the REOA for Central Oregon. Economic development efforts and patterns vary substantially by geographic area, and are always evolving. The approach outlined in Central Oregon's REOA is intended to provide the region with the ability to compete for targeted industries, and is informed by the input of those professionals most knowledgeable in the region and field. • We readily recognize that economic development opportunities in Central Oregon will be fundamentally different than those in the Portland metropolitan area, and have made efforts to reflect this in the REOA. As part of this effort, we recruited extensive participation by industrial recruiters from Business Oregon and EDCO, as well as including Larry Pederson of IronWolf on our team. The input of these participants was invaluable in generating a list of viable target industries specific to Central Oregon, as well as documenting their specific needs. AUGUST 11TH LETTER FROM PAM HARDY Ms. Hardy is concerned that the strengths and weaknesses of various areas were not adequately considered in the REOA. As an example, she cites issues such as the relative percentage of the population with college degrees in Bend v. Madras, and the potential impact that may have on the two jurisdictions' relative attractiveness. I would respond to Ms. Hardy's concern on multiple fronts. First of all, the point of the Regional approach in Central Oregon was to recognize that the individual communities worked cooperatively as a largely cohesive economic unit, with business and commuting patterns reflecting this relationship. As a result, the labor force was seen as mobile within the region. The study does not make a distinction within the region as to which jurisdiction will be most viable for certain employment types, but it does outline the relative strengths and weaknesses from an economic development perspective of the constituent jurisdictions. In addition, the identified target industries reflect those with locational needs consistent with the Central Oregon region. The targeted industries have been deemed as the most likely to locate in the region by both Business Oregon and Economic Development for Central Oregon (EDCO), a finding reinforced by the subsequent research done by Johnson Reid. The letter also points out that individual jurisdictions within the region have population and employment forecasts already in place, and incremental increases in employment will entail employment growing faster than population. While population and employment growth projections are expected to be coordinated, they do not have to be synchronized. Central Oregon as a region has had a consistent disconnect between population and employment numbers. Between 2000 and 2010, Central PAGE 7 Oregon added 47,000 residents, reflecting a 31% increase. During that same period, covered employment in the region increased by 5,521 jobs (9%). Due to the high percentage of retirement and second homes in Central Oregon, the relationship between population and employment has historically been unusually weak. The magnitude of any marginal shift in employment related to the limited number of sites identified through the REOA is not particularly significant relative to the overall employment needs in Central Oregon. If the inclusion of these lands increases employment in the region, population numbers can be adjusted commensurately if the region sees fit. OCTOBER 5TH LETTER FROM PAM HARDY Ms. Hardy provides a helpful distillation of issues that 1000 Friends remains concerned about in this letter. The following is a response to their provided clarifications, organized in a similar manner: Businesses with 20 or more employees are shedding jobs The contention here is that since larger firms have been losing jobs in aggregate, the Region will be unable to capture new larger firms in the future. To understand the relationship between these numbers you need to differentiate between net and gross activity. While contractions in aggregate have exceeded expansions for larger firm sizes, the cited table also shows that the number of firms has increased significantly. As shown on the table, the birth and death of firms is an ongoing phenomenon, and a very substantial number of new firms are formed annually through births or expansions. The ratio of births relative to deaths is most positive in the over 20 employee range citied in 1000 Friends critique. The relevant metric for projecting the prospective capture for Central Oregon is the birth and expansion number, not the aggregate employment number. As noted in the REOA, firms primarily become prospective recruitment targets when they are formed or find their existing facilities or business environment inadequate. As a result, the number of births (which can include new firms as well as firms expanding into a new classification) is a key indicator of the depth of potential market demand. As the primary target of the REOA is firms exogenous to the current economy, the firm death estimates are not relevant to the forecast. Revisions to the Industrial Development Profile Chart Ms. Hardy notes that a chart included in an early draft of the EOA is inconsistent with the chart used in the final EOA. This reflects the fact that the chart was being updated by Business Oregon at the time of the early draft, and the final version reflects a more current profile of site needs. The initial table was completed over a decade ago, and site requirements and industry structures have shifted considerably since that time. The table was included in the earlier draft as contextual, and we were actively working with Business Oregon to generate an updated table. What is it about competing regions that has enabled their success? Ms. Hardy notes a finding in Metro's Urban Growth Report that firms in the Metro area have assembled parcels to meet their needs, which is largely a phenomenon in the Sunset Corridor. This is an area in which locational criteria are both highly favorable and difficult to substitute for. This is not necessarily the case for Central Oregon. As outlined in the experience of the areas summarized in Appendix B of the REOA, areas with less unique site qualifications must stress low barriers to entry. While policy PAGE 8 considerations such as university offerings can support economic development, they are longer term as opposed to short-term considerations. Does the long term needs incorporate the short-term needs? Yes, the long-term needs number is inclusive of the short term needs figure. Employment Forecast The OED forecast included in the REOA is assumed to be contextual as opposed to a reference forecast. The forecasts do reflect an extension of historic trends, and were never intended to be used in either this type of work or to be extended over a twenty year forecast. The REOA does not include or incorporate an employment forecast for the twenty year period. Market Choice The REOA does not have a finding relying upon "market choice", but does note the reality that the competitive position of the Region is reliant upon the availability of multiple viable and readily available sites. A finding of the REOA is that six readily available large industrial sites constitutes the adequate supply necessary to meet public policy objectives. Net Expansion Rate This issue has been covered earlier in this memo. Land Need Relative to Other Jurisdictions This issue has been covered earlier in this memo. SUMMARY In summary, we believe that the comments provided by 1000 Friends have been either substantively addressed in the current REOA, or reflect a misunderstanding of the work and findings. As a regional effort with a very limited area of focus (large lot industrial), the report is distinct from historical EOA efforts in the State of Oregon. As a result, there is likely to be an unusual level of confusion with respect to how to interpret the REOA. During the preparation of this report we consistently sought the best available information from the most experienced practitioners, and the findings of the REOA are reflective of this input. The targeted industries are regionally -specific, their requirements well documented, and represent viable economic development opportunities for the region. The analysis has been heavily informed by the real world experience of business recruitment professionals. As note previously in this memo, Business Oregon is seeing significant active recruitment potential in the region, but has been hampered by a lack of appropriate large lot industrial inventory. There is an inherent lack of precision in long term employment forecasts in general, which is more pronounced for when we limit the forecast to large industrial users. For this reason, the REOA has stressed the maintenance of a short-term over the long-term inventory. It is not our belief that adoption of the REOA requires meeting the long-term inventory finding. Establishing a system for active management and updating to maintain a competitive readily available inventory is of primary importance for the region's economic development objectives. PAGE 9 0 -AC Deschutes County Board of Commissioners 1300 NW Wall St., Bend, OR 97701-1960 (541) 388-6570 - Fax (541) 385-3202 - www.deschutes.org MINUTES OF BUSINESS MEETING DESCHUTES COUNTY BOARD OF COMMISSIONERS MONDAY, OCTOBER 31, 2011 Commissioners' Hearing Room - Administration Building - 1300 NW Wall St., Bend Present were Commissioners Tammy Baney, Alan Unger and Anthony DeBone. Also present were Laurie Craghead, County Counsel; George Kolb, Road Department; Nick Lelack, Peter Gutowsky and Terri Payne, Community Development; and about a dozen other citizen including media representative. Hillary Borrud of the Bulletin. Chair Baney opened the meeting at 10:00 a.m. 1. PLEDGE OF ALLEGIANCE 2. CITIZEN INPUT None was offered. 3. Before the Board was Consideration of Second Reading by Title Only, and Adoption of Ordinance No. 2011-018, Making Minor Technical Changes to Title 17 of Code (Minimum Design Standards — Roads). George Kolb gave a brief overview of the item. Laurie Craghead said there were a few minor changes, nothing substantive, but primarily for clarification. Ms. Craghead read the changes into the record. DEBONE: Move second reading, by title only. UNGER: Second. VOTE: DEBONE: Yes. UNGER: Yes. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 1 of 15 Pages BANEY: Chair votes yes. Chair Baney did the second reading, by title only. UNGER: Move approval with the changes as read into the record by Counsel. DEBONE: Second. VOTE: DEBONE: Yes. UNGER: Yes. BANEY: Chair votes yes. 4. Before the Board was Consideration of Second Reading by Title Only, and Adoption of Ordinance No. 2011-026, Making Minor Technical Changes to Title 12 of Code (Utility Permits - Roads). UNGER: Move second reading, by title only. DEBONE: Second. VOTE: DEBONE: Yes. UNGER: Yes. BANEY: Chair votes yes. Chair Baney conducted the second reading, by title only. UNGER: DEBONE: VOTE: DEBONE: Yes. UNGER: Yes. BANEY: Chair votes yes. 5. Before the Board was a Public Hearing and Consideration of First and Second Readings and Adoption, by Emergency, of Ordinance No. 2011- 027, Adopting Amendments to the Comprehensive Plan. Chair Baney read the opening statement. No conflicts of interest were declared by the Commissioners, and there were no challenges from the public. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 2 of 15 Pages Terri Payne provided a brief explanation of the item. The Ordinance will coordinate changes into the new Comprehensive Plan document. The Planning Commission unanimously approved the changes. The Comprehensive Plan is going through the adoption process at this time, and this document helps to adopt changes that need to be a part of the Plan. Ms. Craghead added that the Comprehensive Plan is part of Title 23, and this will help to make a smooth transition in a timely manner. No public testimony was offered, so the hearing was closed UNGER: DEBONE: Move first and second readings of the Ordinance, by title only, declaring an emergency, effective the same date as the Comprehensive Plan document. Second. VOTE: DEBONE: UNGER: BANEY: Yes. Yes. Chair votes yes. Chair Baney conducted the first and second readings of the Ordinance, by title only, declaring an emergency. UNGER: Move adoption of Ordinance No. 2011-027. DEBONE: Second. VOTE: DEBONE: Yes. UNGER: Yes. BANEY: Chair votes yes. 6. Before the Board was a Public Hearing and Consideration of First Reading, by Title Only, of Ordinance No. 2011-017, to Adopt a Regional Economic Opportunity Analysis and Regional Large -Lot Industrial Land Policy for Central Oregon. Mr. Gutowsky entered the entire file into the record, and submitted an e-mail document received regarding the Ordinance. 1,000 Friends of Oregon also provided testimony, as did several other persons. This will be part of the record. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 3 of 15 Pages Mr. Gutowsky said that the Board has had a work session on this and input is going to be provided by individuals who are involved with the process. Pam Hardy, representing 1,000 Friends of Oregon, came before the Board. She said major improvements were made to the document, but she feels there are still deficiencies. She asked for additional time to review the evidence that will be submitted today, and feels 14 days will be adequate. She referred to written testimony she submitted and explained how she commented on the various parts of the Ordinance. She had provided this information in the past, but said that she had been asked to be very specific about desired changes, so she drafted the document to make this clear. There are certain sections where her recommended changes are relevant. Red print means a major appeal point, yellow is a possible appeal point, and green means she finds the language agreeable. There were three essential questions: Legal? Good policy? Does this document meet the necessary standards? She said yes, it is legal; OAR encourages this type of policy. It is good policy since regional activities provide opportunities of scale that individual entities could not do by themselves, and DLCD has stepped in to help with the process. However, it is very complicated and more information is needed. In particular, significant issues include the fact that there is no trend analysis showing this is an egnognist need. The Oregon Employment Department prediction figures do not support some of the findings. It is hard to find a case showing the need is there. A way to get to a need that is over and above standard employment information is to look at industry trends, such as data center moving into more remote sites. There have to be local assets to attract those kinds of trends, but this information is not in the findings. What is in the record now are just statements from experts largely unsupported by data. Missing is an objective trends analysis. There will be a substantial evidence question to support why it is felt a certain number of new lots are needed. Inventory is required per statute, and the findings admit that there has to be a regional inventory. Cities are not to undertake an inventory because the counties will be doing this. It has to be complete. Instead of adopting the document, the County should set up the group to do a review. There is no data included as to what is going on industry -wide, specifically relating to data centers. Distinctions need to be made. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 4 of 15 Pages Nothing can change until the inventory is done. She suggested that the inventory be done first so more information can be gathered and a rock -solid solution can be developed. It will cost less (avoiding an appeal); it takes less time (appeals take a long time); and it may help to make the area more competitive. The changes need to happen on the ground and soon. She would like more time to come to a compromise that will be mutually beneficial. Chair Baney stated that this is analyzing assumptions, with a lot of moving parts. There has to be a lot of guesswork as this work continues. There are no absolute certainties. She asked at what point they do move forward, since the assumptions will always be changing. They will never get to the end result this way, so have to move forward. At some point they have to put a stake in the ground and go from there. Ms. Hardy said it is hard to predict the future, but as you look into the future, experts that are certain they are right are more likely to be wrong than those who give smaller odds on being correct. People who are not as certain have a more realistic viewpoint and come up with the best analyses. Those who feel they are 100% right are probably missing something. The question is where you stop, and that would be with experts who have a 60% likelihood of what will be happening. Data centers are a trend but it is not known how long that will last. There needs to be adequate power and other infrastructure in place for them. You start with what is most likely, but acknowledge that in two years things could be very different. Commissioner Unger stated that a lot of the requirements and needs for industry are similar, so common elements are needed. As it goes to city by city, other details will be addressed and developed by the cities. Ms. Hardy said that she feels the industries targeted are not similar. Data centers don't need the parking and personnel that warehouses do, nor the energy consumption. She argued that the kinds of targeted industries sought may need the same size lot, but other needs might not be similar. Commissioner Unger said the County wants to create the opportunity and keep things at a broad brush level. Ms. Hardy feels the law indicates that the larger question needs to be addressed at the County level to start. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 5 of 15 Pages John Skidmore, business advocate for City of Bend, said he was with Madras previously. This is a huge opportunity to make changes to a stagnant land use system and start to calculate Goal 9 land use needs. Economic development experts in the area indicate that large lot industrial lands are needed. This will help the area be competitive. Sitting back and tinkering at the system will probably still not get the full support of 1,000 Friends. There are a lot of local experts who have provided input, and he feels this is fully vetted. At a certain point, you've reviewed the trends and have to make an informed decision. He feels the findings are strong and can be supported. If this is appealed, it will be worked at from the legislative angle. He feels the information is thorough and defendable. He appreciates what 1,000 Friends does, but taking on a regional cooperative process is important. Florida just lost its land use planning system due to problems tied to inflexibility and frustration. Commissioner Unger asked that since there is legislative action possible, is it better to wait for this to happen. Mr. Skidmore stated that if it can be handled at the local level and tri -county support obtained, that would be best. There are fewer sideboards if it then goes to Salem. This is not overreaching, and a lot of the future inventory and forecasting will be done on at a more specific, precise level. Commissioner DeBone asked if the City has large lot industrial lands available. Mr. Skidmore said they have a deficiency at this time. Some lots were just platted in Juniper Ridge, but they are smaller. This activity does not assure success, but without change there will be no success. Michael Williams, an industrial lands specialist for Business Oregon, said he is involved in a program that certifies industrial sites across Oregon for new businesses. He supported the REOA in May and supports the current findings now. The methodology is targeted and accurate. They did review current industries. Many industries that will be around in ten years are unknown at this time, but they have to be ready for these today. You have to be ready to move quickly, and be patient in the meantime. Over the last twenty years, the demand in the Metro area came mostly over a two-year cycle. The land use system as structured cannot react that quickly. These are also good proxies for tomorrow. Clean industries are doing well even during the downturn, and some need large lots. Warehousing and distribution is Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 6 of 15 Pages also a growing industry. Also, supply and logistics trends are always changing. Product lines change all the time. There are exterior forces making these changes, so that is why you have to be ready for a broad range of industries. He feels the context of the REOA is to be encouraged at a local level. Companies look at regions and usually do not just look at a specific city. They analyze educational institutions, the employee base, transportation and other aspects. Having six sites is very conservative, and the demand may be for more. At first they looked at firms with 500 or more employees, but then looked at specific industries and recruitments, and examined other areas that have grown due to large lot industrial development. Some has been said that perhaps large employers are not beneficial. He feels they are as a basis for the community. These opportunities are based on site selection, tracked by nine industries. Over the past year, requirements of 25 acres or more have had strong demand. Five of the nine categories want more than 50 acres. In four categories, they want more than 100 acres. These are bad economic times, and if he sees that demand now, it will only increase in the future. Commissioner DeBone asked how much Central Oregon will be the place to locate, when compared to the bigger cities. Mr. Williams said that Facebook put a marker down here and put the area on the map. This was great exposure, and gives other large companies comfort that this area is desirable. There is a lot of large lot development at the Port of Morrow. However, you need good transportation and space, and also a good labor force. The other thing is that some employers will start small but grow over time. They may only need ten acres today but their business plan may look to more space in the coming years. Oregon tries to match a user to a particular site, but he would like to see more focus on business park development. There are a lot of business parks with developers behind them, getting it done. They try to place a user in the right place. They will not come if the sites available are small and segmented. You need large building blocks to work with. There is a lot of evidence that these are quality employers. Commissioner Unger said he toured the Port of Morrow and saw how successful their plan is. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page. 7 of 15 Pages Chair Baney asked about the importance of having a regional approach such as this one. They are getting some pushback as to when the area is ready for this kind of thing. Mr. Williams replied that this helps to diversify the economic base, for large and small businesses alike. They have analyzed both and they've done well even with the poor economy. It needs to be an ecosystem to work efficiently. The regional approach will be a great signal to the market that this is important to the region and gives reassurance to companies that the area wants them there. By showing there is a regional approach and planning, it is an advantage over time. This will help elevate this area. There is a good regional economic development group here as well, who can highlight all the community assets. Scott Edelman of the City of Prineville said he wanted to indicate that Prineville is in support. They do have the industrial lands that they need right now in his area, but appreciates the approach and he is glad Crook County is involved. He also feels that Pam Hardy should be lauded for her input and the input of her group to help keep the work focused and open. Peter Gutowsky has done an admirable job of moving this forward. He does not disagree with some of 1,000 Friends' comments, but likes the common sense approach, and feels that six sites is reasonable. Overall the report backs this up. He said there are too many variables to be exact on what might happen. This project is meant to make it possible for companies that could be here to do so. It is not so much about the number of sites or size, but variety. There are great differences in companies. There need to be enough sites available to be able to address this. It makes sense to have a few sites in each area because of the differences in each area. There are things in this process that do protect land use in the State, such as the types of uses or how the land is utilized. The standards will be strict, which might mean some land is not used or becomes general industrial land. However, the risks are limited when compared to the benefits. There has to be a decision as to the use of each site, and they have to recognize that each area can't have everything that might be needed in their particular area. People still want to live in Central Oregon and want to have businesses here. The process will help them do that when they are ready and when they have learned about the area. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 8 of 15 Pages Roger Lee of EDCO said they are seeing the demand first-hand. They work with a broad spectrum of businesses, many of which do not need this size lot. Prineville has an adequate supply, while other regional cities do not. There is a huge deficiency in inventory, and the infrastructure also has to be addressed. Historically there has been demand, and they are seeing it even today with the soft economy. All of this is documented. They have had inquires as recent as last week. There is not enough here for someone to visit, so they will offer virtual tours. Failing to go forward with this process ensures failure. This does not take away from small to medium sized businesses. There is not enough flexibility at the State level, and there can never be enough information. This is the best attempt to look at all the factors. The current land use process, Goal 9, has served some communities well and some not well at all. The City of Bend has a lack of industrial land and it shows. Redmond has the same issue. This process won't circumvent land use laws, but is an opportunity to get some necessary land available. There are some with smaller employment numbers but the facilities are large and a huge investment for them. It is not theoretical; it is real. Jon Stark, Redmond Economic Development Manager, said he works for EDCO but also deals with 24 other managers. A year ago a site selection firm contacted him regarding obtaining 80 acres. He sent information to them regarding one available site in Redmond. They visited the area and walked the grounds. The incentive package was also of interest to them. They wanted a specific timeline and actually would have wanted more acreage in the future. The additional land was not in the UGB. There is another site that might have been rezoned, but the timeline with the State land use planning process was outside of their project plans by about a year. The area was eliminated for that reason. They support the REOA as a way to give the area a competitive advantage over other areas. The OSPR could be a viable property as well as adjacent properties in Redmond, but at this point the needs cannot be addressed. This must be adopted so a way can be found to give the area a competitive advantage. By not doing this now, it tells the marketplace that we are not open for business or the demands of industry in the future. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 9 of 15 Pages There has been other interest from manufacturers, not just computing firms. This is the real world problems they face. Commissioner Unger disclosed that he is the County representative for the REDDI Board. Chair Baney said it is important to know that the area was considered and lost out because of the lack of the right kind of land. This sends an important message. Rob Hallyburton of the DLCD stated that the DLCD supports the REOA and this effort, as the first local jurisdiction to consider this. Regional planning is a hot topic right now and studies are being done to figure out how to plan better in Oregon. No one thinks that working regionally is a problem. There are other regional efforts being made, such as in Jackson County, looking at the greater Medford area and six cities. That effort has just been adopted, so they are still uncertain about details as well. Everyone thinks regional planning is a good idea but the pushback was the justification to wait. He spoke about Goals and Rules. The County is required to coordinate comprehensive land use plans in that County. It does not go beyond the County but the regional efforts are encouraged in Goal 9. They leave it up the area to figure out how to do this. They do realize there are a lot of details to address. The action does not take the designation of any comprehensive plan map in the County, so this does not directly support new employers. It sets the groundwork for the cities to do the real, specific work at their level. The Goal 9 rule does not have any requirements except a framework. The findings do not have to follow the minutiae that the cities will have to deal with, but will help set the stage and streamline the work. At the Senate committee, he was grilled as to whether the land use program gets in the way of economic development. He had to admit when there are unanticipated opportunities, they are not very good at dealing with those quickly. Anything the county or region can do to help with those is a good thing. Commissioner Unger thanked him for testifying and for the support of DLCD. Chair Baney added that this is unique and they are trying to be nimble. They Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 10 of 15 Pages want to be prepared for the unknown, perhaps trends that are not yet trends. This will help to get to the end result. Doug Parker, an asset planner with the Oregon Department. of State Lands, stated that he thought John Skidmore explained -some noteworthy things. They are an active partner and support the County's efforts to adopt the REOA. The County has emerged as a leader Statewide for doing this. County staff is confident and knowledgeable. Oregon's land use was modified in order to assess land use needs at a regional level, on the hope this would help resolve the lack of large lot industrial throughout the State. It is tied to the land use process. It hopes to break free from the historic process and create a more economically welcoming environment. In response to the question, why should we do this? The answer is because large lot traded sector manufacturers have a multiplier affect. They spin off to the community and the region. Also, when all employment sectors are focused in a certain area and the sector takes a downturn, it affects all. It helps to diversify the economy, making it less vulnerable to trends. He suggested the most important reason is that it will allow your children and grandchildren to have meaningful work at home. This is being done for people who will eventually move into the job market. The DLCD did empower this project with a grant, a top notch consultant and involvement of all planners in the region. He suggested that the folks engaged in the process made this the most dynamic process he has seen. It took leadership and answers to hard questions to move forward. There is another benefit to an REOA. It provides a regionally consistent template for all jurisdictions to use when they want to adjust their boundaries. It may be the County setting the stage for a consistent process that is under control, confidently and professionally standing behind it. There has been a request for certainty in numbers and need. If they do nothing now, there will be none coming. The genuine critical issue at this juncture is to have this land available, protected from land division and other compromises that erode their use. The next process will include key factors on these sites. These communities need to say they are a player, but the stage needs to be set regionally first. The REOA is critical for these reasons. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 11 of 15 Pages This is not the exclusive economic development tool, but supplements the other initiatives going on. If they do nothing, they will remain where they are today. Peter Gutowsky expressed his appreciation to those who testified. He indicated that it is important to note that the DLCD has been cooperative, and they were able to provide leadership, funding and technical expertise that was imperative. It comes back to whether the Board feels the regional approach to large lot industrial is a good idea. In regard to trends, Quincy, a city located in central Washington, did a similar exercise. They realized they had an excess of cheap power. They made an effort to attract data centers, and since then they have attracted five of them. Central Oregon has the capability to be a top attraction. Jerry Johnson, the consultant, cites Business Oregon where it was said that traded sector employers have done four active recruitments. There is a lot of interest in this region by large employers. If these are not trends or specific instances of interest, he does not know what they are. Other experts have said this is true, but it is also said to be so by active economic development experts. The question is whether there is a factual basis. The Board needs to consider whether this a wise decision, and there has to be evidence in the record along with findings that are consistent with Oregon land use. There is a question as to whether Central Oregon needs to identify this type of land. The County can encourage cities to plan for this unmet need in Deschutes County. The County can set a cap on the number of sites that can be planned for and developable, at six sites in three different jurisdictions. There has been extensive testimony that inventory is needed. If there is a cap, this leaves the individual jurisdictions to go through their inventory. The Board can choose to make this decision based on the findings. It is a tall task and a burden. The evidence does not have to be perfect but needs to be made on the best available information. With the testimony today distributed via a video feed and the testimony of economic development experts, this is a lot to offer. There was testimony today asking for fourteen days to respond to comments and documentation. There was not a lot of substantive written testimony offered. The Board could close the record today and deliberations could start in a week. A second approach would to be to leave the written record open until the end of the week. It is meaningful to be able to be in a position to adopt this by the end of November. The legislature will be convening soon and this helps put the region in a good position at that point. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 12 of 15 Pages Since it was nearing noon, Chair Baney asked for a quick break to adjust afternoon meeting plans. Chair Baney feels that nothing has been submitted today that would require her to wait on a decision. Commissioner Unger asked if there is concern about allowing the rest of the week for responses, although this has taken 18 months already and there has been a lot of discussion on the issue. Commissioner DeBone wants to keep it simple. Jobs are needed and this can help with that. Chair Baney stated that there are two major points. The letter from 1,000 Friends is just three new pages. There has been a good job of condensing down a lot of questions to just a few that may never come to a meeting of the minds. She feels testimony today shores up the findings. She would like to close the hearing today and rather than trying to solve the underlying questions, let this be handled in the inventory process. Commissioner DeBone supports closing the record at this time. Ms. Craghead said there are a few typographical errors and that the wording `compelled' should instead be `encouraged' in regard to the cities' working on this. She suggested time be allowed to make these adjustments, and the findings document could be ready by Monday. The written record was closed, and deliberations began. Commissioner Unger sees this process as a model for the State. He envisions this moving forward to recognize the deficiencies in the region and encouraging regional support and cooperation. He supports the Ordinance and wants to move forward. Perhaps a legislative concept will come to bear eventually. They have tried to stay away from appeals, but this may not be possible. Commissioner DeBone stated that it does not seem to be that contentious to him since it encourages economic development and jobs. This will ultimately be addressed at the city level. Chair Baney thanked staff, DLCD and 1,000 Friends. She said this has been a lot of good work and the process has been very thorough. The findings are Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 13 of 15 Pages exhaustive, and the collective approach is important to note. The regional support lays the groundwork for the cities to do the detailed work. It is the right approach and makes sense. Ms. Craghead said that the first reading should not take place until the adjustments are made so they won't have to be read into the record. This document can be ready for the Monday, November 7 Board business meeting. 7. ADDITIONS TO THE AGENDA Before the Board were Deliberations (continued from October 24) and Consideration of First Reading of Ordinances Nos. 2011-001 and 2011-002, Amending Titles 18 and 23 to Modify Deschutes County Zoning Map and Comprehensive Plan Map for the Areas Eligible for the Destination Resort Overlay. Peter Gutowsky provided an overview of the item, which includes a few changes in regard to testimony. There is now an updated set of findings and the revised Ordinance. He explained that the changes relate to specifically to noticeable findings. Ms. Craghead said that the changes should be listed for the Commissioners. Ms. Gutowsky stated that he did not have a specific list but there were various small and a few large changes since the last deliberation date. Ms. Craghead said that the backup documentation and maps are complete and contain this information. DEBONE: Move first reading of Ordinance No. 2011-001, by title only. UNGER: Second. VOTE: DEBONE: Yes. UNGER: Yes. BANEY: Chair votes yes. Chair Baney conducted the first reading by title only. DEBONE: Move first reading of Ordinance No. 2011-002, by title only. UNGER: Second. VOTE: DEBONE: Yes. Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 14 of 15 Pages UNGER: Yes. BANEY: Chair votes yes. Chair Baney conducted the first reading by title only. The second readings can be considered on or after November 21, 2011. Being no fitrther items to come before the Board, the meeting adjourned at 12:10 p.m. DATED this Day of 01t:A.e _ 2011 for the Deschutes County Board of Commissioners. ATTEST: Recording Secretary Tammy B ney, C Anthony DeBone, Vice Chair Alan Unger, Commissioner Minutes of Board of Commissioners' Business Meeting Monday, October 31, 2011 Page 15 of 15 Pages 0REGON ECONOMIC & COMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM March 11, 2008 TO: Douglas Parker, Asset Manager Department of State Lands Ji1ROM: Bev Thacker, Industrial Lands S RE: Summary Rail Served & Large Industrial Sites RECEIVED MAR .11 2008 DEPARTMENT OF STATE LAND6 In order to address a state-wide need, the Department of Economic and Community Development supports the addition of large industrial sites, especially those of 100 to 200 net contiguous developable acres, to the state's industrial land inventory providing they meet the following criteria: • Local ordinances restrict the ability of landowners to subdivide these larger sites into parcels of less than 100 acres, • The sites are contiguous to an existing Urban Growth Boundary and have ready access to local utilities such as sewer, water and energy, • Transportation access is not constrained, • Thesite owners and the city agree to meet the requirements for certification under the state's Certified Industrial Site program. • If the site does not currently meet the above conditions, OECDD would support the project provided there is a plan in place to address any issues. Background Large, ready to go industrial sites have been the state's most significant development challenge and one of the most noticeable changes in real estate trends in last few years. This change in demand and the changing nature of OECDD's account base clearly document that global business trends have emerged as key elements in Oregon's economy. Global projects share a common platform made up of capital intense applications, economies of scale and mass market demands. Time to market is more important then ever with ever shrinking product life cycles and faster turns in the market cycle. We see a uniform demand for ready to go sites, superior multi -modal transportation connectivity and large structures coupled with ever shortening site selection time lines. For example, the average size warehouse facility in 1999 was around 150,000 sf and is now over 375,000 sf with average clear interior height increasing from 28 ft to 32-36 ft. In order to meet demand for large, ready -to -go sites, in 2003 the State instituted its Certified Industrial Sites program. Certified sites undergo a stringent process to ensure that they are project ready and building can begin within 180 days of a development decision. Issues related to environmental clearances, zoning, utilities and transportation have been addressed and state and local regulatory agencies have confirmed the site's readiness to proceed. While 57 sites have beencertified statewide, only 12 of these sites were over 100 acres. Of these, eight are still undeveloped. However, these sites are constrained by their locations in rural areas off the major interstates and lack of sufficient workforce. Global accounts have tended to be very attractive to the state and community bringing leading edge technology, large capital investments, labor intensive and higher wage rate employment opportunities. While the chart is not a comprehensive record, it does show that the demand for larger sites has increased in the measurement period and that employment has moved to higher employment densities. The shortage and even lack of large sites is now resulting in opportunity loss to our communities and the state. OECDD documents that the demand for the large sites has increased over time and the nature of the utilization now reflects the impacts of Globalization as shown in our "rough" outline of large projects since 1996: 2 Central Oregon Central Oregon has the workforce and educational infrastructure to be attractive and support large parcel projects and the area's Economic Development plan has targeted sectors that will require larger sites. Central Oregon's targeted key industries are 3 Project Location Lot Size (est.) Building Size (est.) Type 1996 Target Albany, Or 175 acres 1.3 mm SF Distribution 1997 Wal-Mart Hermiston, Or 200 acres 1.3 mm sf Distribution 2002 Dollar -Tree Ridgefield, Wa 75 acres 800,000 sf Distribution 2002 Familian (Plumbing) Tri -Cities, Wa 75 acres 500,000 sf Distribution 2002 Wal-Mart (Cold Storage) Granview, Wa 100 + acres 900,000 sf Distribution 2004 Lowes' Lebanon, Or 204 acres 1.3 mm to 2.2 mm sf Distribution 2004 - Olympic (Vanity Fair) Shafter, Ca (back 12/27/07) 100 + acres 900,000 sf Distribution. 2005 EADS Portland Area 100 + 2.5 million Aerospace 2006 October (cold storage) Salem, Or (STALLED ) 145 + acres 1 mm sf Distribution 2006 NOAH -PepsiCo Albany 204 acres 2.5 rnm sf Manufacture 2006 Private Project (Technology) Northern Oregon 1-5 100+ 1 million Manufacture 2006 Project GoForth Salem Area 75-100 1 million Distribution 2006 Genentech Hillsboro 100 500,000 Man/Dist 2006 SolarWorld Hillsboro 100 1 million Man/Tech 2006 Jindo Oregon 100 Manufacture 2006 Apricus N -Oregon 250 Very large Man/Tech 2007 Crystal Millersberg 100 Man/Tech 2007 HOT Northern Oregon 100 Man/Tech 2007 Gold Rush E -Oregon 930 Very large Man 2007 Navitas Oregon 150/200 Man/Tech 2007 NN2 Hillsboro 150 1.5 million Man/Tech 2007 Tahoe Oregon 150 Man/Tech Central Oregon Central Oregon has the workforce and educational infrastructure to be attractive and support large parcel projects and the area's Economic Development plan has targeted sectors that will require larger sites. Central Oregon's targeted key industries are 3 Secondary Wood Products, Aerospace/Aviation, High Technology, Light Industrial/manufacturing, Research & Development and Recreational Vehicles. The following chart that shows the range of site demand associated with these key industries. Key Industry Minimum Site Size Predicted Site Size Secondary wood Products 5 acres 50 acres Aerospace/Aviation 2.5 acres 150 acres High Technology 2.5 acres 250 acres Light Industrial 2.5 acres 50 acres Light Manufacturing 2.5 acres 75 acres Research & Development .5 acres 10 acres Recreation Vehicle Manufactures 5 acres 100 acres The department's Central Oregon Business Development Officer, working with community ED partners, developed the following list, of Central Oregon sites for sale with or near rail access. There are three possible sites in the market area measuring over 100 acres in size. Two of these sites are potentially close to being shovel ready. However they have issues related to transportation and utilities that will require expensive fixes. Our analysis would indicate that the shortage of larger, ready to go industrial sites in Central Oregon will soon emerge as a significant constraint to the areas economic growth. The largest rail served site (potential service) is the 200 -acre Williams property in Prineville. Currently, 30 acres of the site is in escrow for a pending sale. The next largest site is the Juniper Ridge site in Bend that measures 120 acres. There is one large non -rail served sites in Redmond that has significant readiness challenges. Regionallarge site inventory breaks down asfollows: Prineville: Hooker Creek property is 37 acres and has rail access. Rhoden Property: 33 acres and has a rail stub to the site. Williams Property: 200 acres, with 30 acres currently in escrow for a pending sale. The property is adjacent to the Prineville Short line Rail Road line, and does not currently have rail access, but the railroad has indicated that it would be possible to install a spur track to serve the site. 78 acres of this site is a State Certified Industrial Site. 4 Prineville Railroad Property: 32 acres, and has full rail access. The site is a full service trans -load, reload, and warehousing facility. Shrum property: 27 acres without rail access, but it does have a right-of-way for rail to serve the site through the adjoining Williams property. 2590 NW Lamota Road site: about 14 acres. The property is adjacent to the Prineville Railroad line, and does not currently have rail access. A spur track could be installed to serve the site. Stafford property: 30-40 acres, a former LP mill site with an existing rail spur Contact Lumber site: 12-20 acres, behind their existing mill with rail access. Culver: Genmar (former Sea Swirl Boats) property: 29 acres, and has rail access. Bend: Hooker Creek (former Korpine Mill) property: 23 acres with two rail spurs. Juniper Ridge: 120 acres rail served. This site is ready to go and has excellent rail service. LaPine: Former PAC Equities Property, and Crown Pacific mill site: 35 acres near a 2 -acre site with rail access owned by Deschutes County for off loading (trans -load) with a short haul to the site. Deschutes County Property: 80 acres near rail access, but across the tracks from the 2 - acre County -owned site with rail access. That rail access could be used for a grans -load with a short haul to the site, or a spur could be added to the 80 -acre site. State Certified Industrial Site LaPine would be difficult to get the owners of the mainline, BN & UP, to serve. The large railroads do not like to stop trains for switching unless it is for a large number of rail. cars...to...be_mo.ved_onto.-a .siding........_._................_.._......_.............................................._..............................................................._.........._................_............................................... Redmond:. Maynard Alves property (former Crown Pacific Mill): 70 acres and has rail access that includes four rail spurs. Desert Rise site: Up to 200 -acre site that appears to have utility service challenges. Madras: No large properties are currently for sale with rail access. 5 The Department of State Lands Property The Department of State Lands (DSL) is proposing to add approximately 980 acres to the City of Redmond's Urban Growth Boundary. Their plans call for approximately 670 acres of this to be zoned industrial. Because of the location of the site and its proximity to existing utility services and transportation corridors this site could be an important addition to the state's large site inventory. It is also consistent with the state's strategic economic development plan, provided DSL and the City of Redmond pursue certification under the state's Certified Industrial Site program and that restrictions be placed on the site to preclude sub -dividing it in the future. It will also be important for DSL to continue working with state and local officials to resolve transportation issues surrounding access to State Highway 97 and the railroad. Access to city water and sewer services will need to be provided which will require the extension of existing lines. Current restraints on power availability must be addressed to ensure that the site is marketable. 6 June 3, 2011 ECONOMIC DEVELOPMENT FOR CENTRAL OREGON Nick Lelack Deschutes County Planning Department 1300 NW Wall Street Bend, OR 97701 Dear Nick, I would like to respond to a letter submitted to you regarding the Central Oregon Regional Economic Opportunities Analysis (REOA) by 1000 Friends of Oregon dated May 17, 2010. (I believe the letter's author intended the date to be 2011.) As a member of the REOA over the past nine months, my first comment is to point out that the group is comprised of every community development and top planner for the cities and counties in the Central Oregon area. These are our local land use experts working day-by-day in the field. None appears to share the view, position or perspective expressed by the letter. Generally, I found the letter relatively hard to follow from one subject to another and some were covered in the same paragraph. Many of the points made within the letter: • do not pertain to the task at hand, namely to determine if a shortage of large acreage industrial land is a hindrance to overall economic development and diversification efforts, ■ are focused on economic development strategy, not economic opportunities (and uses references of relatively simplistic or "in vogue" economic development concepts), • attempt to insert 1000 Friends subjective statements about specific industries and even companies into what should be a part of the REOA methodology, and • clearly comes from a perspective that favors the status quo for our current land use system rather than the innovation. This letter is an attempt to coherently address the major concerns raised by 1000 Friends, not in the order cited in the letter, but by category. Status Quo The first few pages attempt to make a case that existing land use law provides all the tools necessary for communities to meet large and small industrial development needs. If this were the case, the DLCD grant for this project would be a complete waste of valuable time and resources. The implication that large industrial lot needs could somehow be met using existing land already inside Urban Growth Boundaries (UGBs) or vacant buildings is simply wishful thinking. If history has provided any lessons for Oregon communities the past decade they would be that there is a natural propensity for industrial land within UGBs to be converted from industrial zoning to other uses. Most Central Oregon communities have already completed inventories of industrial land and for some there are virtually no options or they are extremely limited. Similarly, while considerable aggregate inventory currently exists for existing industrial buildings in the region, they consist mostly of small footprints, problematic adjacent zoning and uses, older structures - none can meet the need of a large user even if consolidation was physically or economically feasible. Page 2 of 4 1000 Friends Technical Response June 3, 2011 The argument also is made that the solar equipment manufacturing industry in Oregon has been able to grow, adding companies and jobs within existing UGBs. While it is true that former semiconductor manufacturing facilities in Oregon have been a compelling asset to the industry, the simple fact remains that locating such industrial developments outside UGBs is not legal in this state. Given the sheer shortage of rural industrial land inventory and the requirement of companies to develop their own onsite water and wastewater treatment, we should expect to see nearly 100% of any industrial sector to grow within UGBs, and more specifically within the city limits of municipalities. This again assumes that the status quo, in the face of persistent demand, is adequate to deal with large lot users. This assumption is dubious. The real question really remains: how many companies needing large industrial -zone acreage bypassed Oregon because of the widely acknowledged dearth of such properties? The REOA attempts and, we believe succeeds, to quantify this inherently difficult metric. Subjective Commentary EDCO finds it very interesting that 1000 Friends have boldly made a value statement not only about an industry communities in the region have selected to target, but actually a company that located recently in the region. To this point, it is clear that the community in which that company located is pleased with the result. Contradicting their own statement claiming that "There is no analysis of whether any of the strengths or weaknesses would actually cause any large employer to locate in Central Oregon" yet names that large employer, Facebook, that purchased 125 acres. Clearly, there is very recent precedent, there is demand and there will be more. Apparently, because 1000 Friends does not "like" the volume of land or utilities used by the facility or industry in general, this is not a relevant example. Economic Opportunities Analysis Scope & Economic Development Assumptions The implication that a community's large industrial lot needs — capacity to accommodate current or future opportunities - can be met via improved education of its residents is entirely out of the scope of the REOA. A case is also made that economic development strategies are not adequately outlined as a part of the work to be completed by REOA. The purpose of the study was not to provide an A -Z roadmap for economic development and the many and complicated steps needed to achieve success for a community, the region, or for any specific industry. As a point of clarification, these strategies are already in place. The scope of the REOA is to determine if a shortage of large acreage industrial land is a hindrance to economic growth and diversification efforts. If so, the REOA is to recommend steps to address this deficiency. Comments made in the letter infer that attraction of large industrial lot users is the only strategy of local and regional economic development efforts. Nothing could be further from the truth. Efforts to help existing companies (large and small) to grow or sustain their employment have been in place for more than a decade. Efforts to help start-ups and early stage companies are also solidly established. Local and regional recruitment efforts to attract new firms do not focus only on large employers or large facilities. Quite the contrary! A majority of time, money and effort is directed to smaller operations — most of which may never have need of a large industrially -zoned lot. This has been documented in presentations by the consultant and within the REOA. Most importantly, the REOA is not a prescription of how to do economic development as 1000 Friends implies. EDCO understands that most jobs come from existing companies, which is why it dedicates more than 50% of its efforts to fostering entrepreneurship and the retention/expansion of existing traded - sector companies. Recruitment of companies in new and existing industries, however, is an EDCO • 109 NW Greenwood Avenue, Suite 102• Bend, OR 97701 • 800-342-4135 • www.edcoinfo.com Page 3 of 4 1000 Friends Technical Response June 3, 2011 important component of any successful economic development program and diversification strategy. New companies bring a different mix of professional and technical talent to communities that can spawn other businesses and technologies. Intel's expansion to Hillsboro in the late 1970s is a good example in Oregon. At that time it was a recruitment project, but in the subsequent decades this global leader in semiconductor technology and production spun off more than 100 companies (many small) that significantly contributed to the overall diversification of Oregon and of course many well -paying jobs. The letter also mistakenly tries to make the case that that large employment is generated by large industrial lot users, which necessitates the amenities and resources, such as higher education found only in larger metro areas. With several industries, this is not the case. While a typical manufacturing company needing 50-100 acres and building 200,000 —1,000,000 square feet would employ thousands of people, this does not hold true for the data center industry, warehousing and distribution industry and certain high technology manufacturers such as are found in electronics and the renewable energy industry (i.e. polycrystalline refinement). In fact, it is more likely that companies in these sectors will actually seek less populated areas to locate operations because of several cost factors including land, transportation capacity, utilities and labor. Furthermore, there should be no assumption, as is made in the 1000 Friends letter, that location of these operations, on a per company basis, generates a large jump in economic or population growth. Similarly, population growth rarely determines where large facilities are located. A case is made in the letter that small employers create jobs and large employers (a false premise for large industrial lot users) shed jobs. Research on this topic is far from conclusive. An obvious question raised by this hypothesis is: What happens to start up activity in the absence of large employers? That is to say, if you have a dearth of larger employers, from which a disproportionate number of small ventures spring, what is the corresponding rate of new or small company job growth. Would the Seattle area have over 1,000 software firms if Microsoft were located in New Mexico? The fact remains that the "who creates jobs" argument misses the point of the REOA. Without places for larger employers OR industries that need large acreage, Central Oregon (and the state overall) implicitly forces out these operations. A real world example of where this is happening is Boulder, Colorado. The Boulder area is a hotbed for startup activity, research and development and technology transfer from area universities, anchored by the University of Colorado. But strict planning controls in Boulder force out the most successful companies because there is literally no place for companies of size to locate. Some find homes in neighboring communities, others leave the state altogether. This trend is documented in a 2010 study by Headwaters Economics of Bozeman, MT that specifically compares peer communities in the western U.S. to Central Oregon (Deschutes County). Toward the end of the 1000 Friends letter, it makes reference that Central Oregon simply can't compete with urban areas for large projects. The fact is that we do compete on a regular basis with areas with much larger populations including Boise, Spokane, Seattle (and surrounding communities) Portland, Reno and other small/midsize metros that offer similar lifestyle attributes and mix of business location factors. Often, Central Oregon is competing for projects where owners or managers are not looking for a dense urban area for their operations where the cost of land is expensive, transportation routes too congested, labor costs and competition are high. EDCO. 109 NW Greenwood Avenue, Suite 102• Bend, OR 97701 • 800-342-4135 • www.edcoinfo.com Page 4 of 4 1000 Friends Technical Response June 3, 2011 Lastly, the letter reiterates the position of 1000 Friends of Oregon that the REOA is lacking and that their organization supports regional cooperation and land use decisions that foster economic growth. The proposal outlined in the REOA to create an inventory of six sites initially region -wide that would be exclusive for large -lot users is innovative, does not dismantle Oregon's land use system and provides some options and alternatives to attract employers to the region. It also enjoys the unified support of city and county planning directors, Oregon's economic development department, and EDCO. To say the least, it is disappointing that the work encompassed by the REOA garnered so little support and so little constructive feedback from 1000 Friends. Still, now is the time to move on and move forward. With unemployment rates in Central Oregon more than double state and national averages, action, not rhetoric or preservation of the status quo is needed. Respectfully, Roger J. Lee Executive Director EDCO. 109 NW Greenwood Avenue, Suite 102• Bend, OR 97701 • 800-342-4135 • www.edcoinfo.com COA Central Oregon Association of REALTORS, 2112 N.E. 4th Street • Bend, OR 97701 (541) 382-3452 • FAX (541) 383-3020 www. cent raloregon realtors.corn June 10, 2011 Nick Lelack Planning Director Deschutes County Co inanity Development Department 1300 NW Wall St. Bend, OR 97701 Dear Nick, The Central Oregon Association of REALTORS® expresses its support for the Regional Economic Opportunity Analysis and urges the Land Conservation and Development Commission to approve the report's findings and recommendations. We also encourage all of the other local governments in the region to cooperate with each other and Deschutes County in this regional effort to implement the REOA's recommendations. The economic crisis that has gripped Central Oregon since 2007 is largely the result of a rapid decline in the real estate development and construction industry and the subsequent collapse of home prices. Our region has long been subjected to economic disruptions caused by our overreliance on a few industries. Without a more diversified economy this pattern of growth and collapse will continue, at some point permanently tarnishing our high quality of life image. It is vital that state and local governments act to improve our economic competitiveness while there is a rare political consensus regarding this problem and its severity. To that end, the REOA represents fresh thinking and an innovative approach that has the potential to improve Central Oregon's economic competitiveness, create jobs and put people back to work. The REOA points out Central Oregon's natural disadvantages that impact our economic competitiveness. Unfortunately there is little we can do about those factors. More importantly the REOA does an excellent job of identifying the obstacles to economic development posed by the state's complex and burdensome land use system. 1. Economic development trends and patterns change within the 20 -year planning period enshrined in land use law. 2. Time is critical to the private sector. Long time periods for infrastructure development and transportation plan updates are significant barriers to economic development. P.EAITOg' REALTORT is a registered mark which identifies a proiessicedi id real estate vino subscrlbes e strict Code of Ethics as a membeir e the NATIONAL ASSOCIATION OF REALTORS. 3. The immediate availability and diversity of sites is more important to businesses than a community's 20 -year supply of land. Economic development requires a real inventory of quality sites at any given time to meet the private sector's needs. It is clear from the REOA that Central Oregon's ability to meet the needs of businesses and to do so rapidly is essential to our competitiveness, Unfortunately, our top down, command and control land use system lacks the flexibility and responsiveness that we need to attract and retain manufacturers and other employers needing large tracts of land. If the system worked properly we would currently have an adequate supply of large lots for industrial development. One of the criticisms of the REOA by 1000 Friends of Oregon is that a local trend toward small business development should be the focus of our economic development efforts. Perhaps they missed the main point of the document: one of the principle reasons for this trend is the lack of shovel ready large sites suitable for industrial development. The REOA identifies a real problem with our economic competitiveness and proposes a targeted solution. A comprehensive approach to economic development involves accommodating all types of businesses, large and small. Purposefully excluding large employers from our region will prevent us from diversifying our economy. The uncertainty created by our land use laws and regulatory policy is a deterrent to private sector investment and growth. As the city of Bend's experience demonstrates, the UGB expansion process is lengthy, expensive and unpredictable. Any community that attempts a land use action in the vicinity of a state highway faces the challenge of the Transportation Planning Rule. In addition to those bureaucratic barriers to expeditious land use actions, cities and counties are likely to face numerous and protracted legal challenges from powerful anti -growth pressure groups taking advantage of Oregon's very low bar for appeals. The recent example of Solopower moving to Portland explicitly to avoid a political battle with local activists in Hillsboro demonstrates the problems a community may face in trying to land a large employer providing family wage jobs. A new process is needed. There is no existing model to rely on because Oregon's land use system has prevented necessary land from being available for large lot industrial development when opportunities arise. DLCD officials have asked us, "What would you do if you could do things differently?" They've asked us to "innovate" for them. They've stated they want this new concept to succeed. The REOA is a reasonable proposal to do things differently, to innovate. It will not solve all of our problems, but it is a critical part of our future economic success. If Central Oregon continues to be burdened by a nearly forty year old land use system that is not responsive to the economic conditions of today, much less tomorrow, then our quality of life will continue to erode. For the REOA to have a positive impact on our economic competitiveness it must provide flexibility to local governments in identifying and securing large sites for potential industrial development. Eligible sites must be `shovel ready" immediately. A 20 -year land supply is not real inventory, and a false inventory is worse than having none. 2 Requirements that eligible sites be adjacent to UGBs also will; limit the effectiveness of the program. For example, areas east of Bend in the vicinity of the airport and/or sewage treatment plant are capable of being served by utilities and would otherwise be candidates for industrial development, but are not adjacent to the city's UGB. We also need to consider both public and private land for eligibility. The REOA also will be less effective if sites adjacent to city boundaries are required to be brought into a UGB. There should be flexibility to allow sites to remain in the county, perhaps under a new zoning designation. If local governments wish to bring eligible sites into their UGBs they should be able to do so under an expedited process, whether or not the sites are in an urban reserve. If cities are required to go through the normal UGB expansion process this program will not work in a timely fashion. The process is too cumbersome and subject to lengthy legal battles that will deter potential employers. If the real goal is job creation in a timely manner, then Central Oregon needs LCDC's blessing and support for an expedited process. The future implementation of this regional large lot industrial program may take multiple paths. The first Would be pursuing necessary plan changes to create a new large lot industrial (LLI) zone in county jurisdictions, not necessarily within a city UGB. The second would be through a streamlined UGB expansion process for this new zone. In practicality, with only a few publicly -owned possible exceptions, eligible sites do not exist within our existing UGBs; and if they do, changing to the large lot industrial zone would be a downzone and therefore economically unlikely.. We appreciate the opportunity to work on this project and COAR looks forward to being involved with the implementation and site evaluations going into the future. Spicerely, f William Robie Government Affairs Director 3