HomeMy WebLinkAboutOrdnc 017 - Reg Econ Opp Analysis - IndustrialREVIEWED
LEGAL COUNSEL
For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Ordinance Amending Title 23, of the Deschutes
County Comprehensive Plan to Adopt a Regional * ORDINANCE NO. 2011-017
Economic Opportunity Analysis and Regional Large -
Lot Industrial Land Policies for Central Oregon
WHEREAS, in 2010 the Deschutes County, in collaboration with Crook and Jefferson counties and
their respective cities, initiated a process for conducting a Regional Economic Opportunity Analysis ("REOA")
for Central Oregon, and
WHEREAS, the REOA was completed in May 31, 2011; and
WHEREAS, Statewide Planning Goal 2, Land Use Planning, OAR 660-009-0030, and 1000 Friends of
Oregon v. City of Dundee, 203 Or App 207 (2005) require Deschutes County to locally adopt the REOA as part
of the county's comprehensive plan in order for local govemments in the county to base land use decisions upon
it; and
WHEREAS, the Deschutes County Planning Commission held a public hearing on August 25, 2011, to
review the REOA and corresponding regional large -lot industrial land policies, and recommended adoption of
the proposed Comprehensive Plan amendments; and
WHEREAS, the Board of County Commissioners ("Board") held a duly noticed public hearing on
month September 26 and October 31, 2011; and
WHEREAS, the Board finds it in the public interest to adopt the REOA and corresponding regional
large -lot industrial land policies into the Comprehensive Plan; now, therefore,
THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS
as follows:
Section I. AMENDMENT. DCC 23.48, Urbanization, is amended to read as described in Exhibit
"A," attached hereto and by this reference incorporated herein, with new language underlined and language to
be deleted in strikethreugh.
Section 2. AMENDMENT. DCC 23.52, Economy, is amended to read as described in Exhibit "B,"
attached hereto and by this reference incorporated herein, with new language underlined and language to be
deleted in st-rikethreugh.
///
PAGE 1 OF 2 - ORDINANCE NO. 2011-017
Section 3. AMENDING. Section 4.2 of the Deschutes County Comprehensive Plan, adopted in
Deschutes County Code 23.01.010, is amended to read as described in Exhibit "C," attached and incorporated
by reference herein, with new language underlined and deleted language set forth in ctrikcthrough;
Section 4. FINDINGS. The Board adopts as its findings Exhibit "D," attached and incorporated by
reference herein.
Dated this of , 2011 BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
ATTEST:
TAMMY BANEY, Chair
ANTHONY De BONE, Vice Chair
Recording Secretary ALAN UNGER, Commissioner
Date of 1s` Reading: day of , 2011.
Date of 2"d Reading: day of , 2011.
Record of Adoption Vote:
Commissioner Yes No Abstained Excused
Tammy Baney
Anthony DeBone
Alan Unger
Effective date: day of , 2011.
PAGE 2 OF 2 - ORDINANCE NO. 2011-017
Chapter 23.48. URBANIZATION
23.48.010. Urbanization.
23.48.020. Goals.
23.48.030. Urban Growth Boundary Policies.
23.48.040. Urban Reserve Area Policies
23.48.050. Regional Economic Opportunity Policies.
23.48.010. Urbanization.
A major emphasis in Oregon's land use planning is locating the majority of new development in urban areas.
The rural areas are primarily to be protected for natural resource utilization. Between the urban areas
(incorporated cities) and the rural areas lies what is referred to as the urbanizing area. Usually under the
jurisdiction of the County, this is the area where the future population will be located and where the city's
services must be extended.
In Deschutes County the incorporated cities of Bend, Redmond and Sisters have been given the authority,
by the County, to prepare plans for their respective urban areas. These plans are coordinated with the
County's planning effort and will eventually be adopted as part of the County's comprehensive plan. In
addition to a plan each city also prepares an urban area zoning ordinance and a cooperative agreement for
mutually administering the urbanizing area.
All three incorporated cities were growing at rapid rates by the time the Deschutes County Year 2000
Comprehensive Plan was adopted in 1979. At that time, the County estimated Bend's urban area contained
a population of 33,000 people, Redmond's was approximately 7,500, and Sisters' approximately 900. All of
the cities were expected to continue their growth to the year 2000. The 2000 Census results for Bend,
Redmond, and Sisters were 52,029, 13,481, and 959, respectively. In 2000, 58 percent of the County's
population lived in urban areas.
The fourth city in Deschutes County is the City of La Pine. Incorporated on November 7, 2006, the City of
La Pine's 2006 population estimate of 1,590 was certified by Portland State University, Population and
Research Center on December 15, 2007. As of January 1, 2009, La Pine is coordinating with the Oregon
Department of Land Conservation and Development to develop its first comprehensive plan, which when
acknowledged, will officially recognize an urban growth boundary.
The Deschutes County Coordinated Population Forecast, adopted in August 2004 estimated that by the year
2025, the County's population will reach 240,811 people. The 2004 forecast estimated 109,389 people in
Bend, 45,724 people in Redmond, 3,747 people in Sisters, and 81,951 in non -urban, unincorporated areas.
If population growth occurs as forecasted in 2004, 66 percent of the County's population will reside in
urban areas by 2025.
PAGE 1 OF 10 — EXHIBIT "A" TO ORDINANCE 2011-017
By 2025
Nonurban,
34%
Bend, 45%
Sisters, 2%
Redmond,
19%
As a result of the La Pine incorporation, Deschutes County updated its Coordinated Population Forecast
with Ordinance 2009-006. The purpose of this modification was to adopt a conservative twenty-year
population forecast for the City of La Pine that can be used by city officials and the Oregon Department of
Land Conservation and Development to estimate future land need and an urban growth boundary.
Deschutes County's 2004 Coordinated Population Forecast applied a conservative 2.2% annual average
growth rate to estimate the county's unincorporated population from 2000 to 2025. This method applied the
growth rate as a compounding rate throughout the entire forecast. Recognizing that incorporation occurred
on November 7, 2006, it is reasonable to apply a 2.2% annual average growth rate to La Pine's estimated
population, starting in July 1, 2007, the first time Portland State University's Population Research Center
officially certified the City of La Pine in an Annual Population Report. By extending the growth rate to the
Year 2025, La Pine's population will be 2,352. The non -urban unincorporated population decreases by
2,352 from its original projection of 81,951 to 79,599. Extending the growth rate to the Year 2029 results in
a twenty year population estimate of 2,566 for La Pine.
Such growth will undoubtedly create severe problems for the provision of public services and adequate
amounts of residential, commercial and industrial lands. Other problems are the protection of important
aesthetic values, needed improvements in appearance and function of existing developments, safety and
aesthetic problems, as well as energy and service costs, created by strip development; and problems with
coordination and cooperation between the various agencies serving the public in urban areas, a problem
which already exists.
PAGE 2 OF 10 — EXHIBIT "A" TO ORDINANCE 2011-017
Some opportunities also exist. Cities in Deschutes County are located in one of the most beautiful and
livable environments in the State. All of the communities have within their authority the power to guide
their community's growth for the public's benefit. Cooperation and mutual effort between the cities, special
districts and the County could mean urban environments that not only function efficiently but are attractive
and desirable places to live.
Deschutes, Crook and Jefferson counties and their respective cities, in 2010 and 2011, undertook an
unprecedented regional evaluation of the economic opportunities and constraints associated with users of
large industrial parcels in the Central Oregon region. During the 1990s, the Central Oregon Region
undertook a dramatic transformation from an economy concentrated largely in wood products into a service
based economy serving a growing and diverse tourism and household base. Accelerated in -migration and
tourism growth gave way to rapid economic expansion, escalation in home prices, and a systematic shift in
the local economy from goods producing activities to service oriented industries. While initially
representing a diversification of the local economy, this shift led to an over -reliance upon these types of
industries. During the recent recession, the regional economy's vulnerabilities became apparent.
Suitable land for today's industrial development forms emerged as one of Oregon's most severe
development challenges. As a region, Central Oregon specifically targeted basic industries with large lot
industrial needs to support the region's economic development objectives. Through Oregon's statewide
planning framework, a Regional Economic Opportunity Analysis (REOA) evaluated Central Oregon's
opportunities. competitiveness ability, and willingness to recruited and organically grown firms requiring
new large scale development models. That REOA, dated May 31 2011 is attached to the findings in
Exhibit C to Ordinance 2011-017.
The Central Oregon region needs a critical mass of competitive and diverse vacant, developable industrial
sites in order for site selectors representing potential industrial recruitment opportunities to consider the
region. A regional consensus has been agreed upon to establish and pro -actively manage a regional land
supply of large -lot industrial sites to enable the region to become competitive in industrial recruitment. This
regional strategy includes individual site infrastructure improvement assessment and implementation
programs and requirements. Regional planning, management, and governance of a sustainable large -lot
industrial vacant land supply will involve Central Oregon city and county governments, including advice
and guidance from Central Oregon Planning Directors Association, Economic Development in Central
Oregon and Oregon Business Development Department to assure an adequate, self, -renewing regional
supply of developable and competitive vacant industrial sites.
The purposes of DCC 23.48 are to provide the link between the urban and rural areas, and to provide some
basic parameters within which the urban areas of Deschutes County shall develop, although the specific
urban area plan for each community shall be the prevailing document for guiding growth in its respective
area. These policies will permit the County to review each urban area plan against common criteria and
assure consistency County -wide.
(Ord. 2010-017 §1, 2011. 2009-006 §3, 2009; Ord. 2004-012 §4, 2004; Ord. 2002-005 §1, 2002; Ord. 2000-
017 §1, 2000; Ord. 92-051, 1992; PL -20, 1979)
23.48.020. Goals.
1. To provide for an orderly and efficient transition from rural to urban lands.
2. To assure that planning and implementation of plans in the urban areas are consistent with the best
interest of both urban and urbanizing area residents.
3. To retain and enhance the character and quality of the urban areas as growth occurs. To recognize
and respect the unusual natural beauty and character of the area.
PAGE 3 OF 10 — EXHIBIT "A" TO ORDINANCE 2011-017
4. To provide a sound basis for urbanization by establishing proper relationships between residential,
commercial, industrial and open land uses; fostering intergovernmental cooperation; and providing
an efficient transportation system.
5. To retain and enhance desirable existing areas and to revitalize, rehabilitate and redevelop less
desirable existing areas; to encourage and promote innovations in development techniques in order
to obtain maximum livability and excellence in planning and design for development.
6. To recognize the City of Redmond Comprehensive Plan as the policy document that provides the
basis for implementing land use plans and ordinances in Redmond's Urban Growth Boundary. The
general purpose is to provide for one principal means of implementing the Redmond
Comprehensive Plan.
7. To build a strong and thriving regional economy by establishing and actively maintaining a
competitive portfolio of large lot employment sites and coordinating public investments, policies
and regulations to support regional and state economic development objectives in Central Oregon.
(Ord. 2010-017 &1, 2011; 2006-018 §1, 2006; Ord. 2002-005 §1, 2002; Ord. 2000-017 §1, 2000; Ord. 92-
051, 1992; PL -20, 1979)
23.48.030. Urban Growth Boundary Policies.
1. Urbanization. Urbanization policies refer to an unincorporated urban growth areas within an urban
growth boundary but outside the boundaries of a city, and are intended to assist in the decision
making about the conversion of rural to urban uses, and to help in the development of consistent
urban area plan. More detailed policies for the urban areas of Bend, Redmond and Sisters are
specified in the urban area plans and they shall be the primary documents for coordination and land
use decisions in their respective areas.
a. Urban growth boundaries identify and separate urbanizable land from rural land. Conversion of
urbanizable land to urban uses shall be based on consideration of:
1. Orderly and economic provision for public facilities and services;
2. Availability of sufficient land for the various uses to insure choices in the marketplace; and
3. Encouragement of development within urban areas before conversion of urbanizable areas.
b. Urban growth boundaries shall be established or expanded based upon the following:
1. Demonstrated need to accommodate long-range urban population growth requirements
consistent with LCDC goals;
2. Need for housing, employment opportunities and livability;
3. Orderly and economic provision for public facilities and services;
4. Maximum efficiency of land uses within and on the fringe of the existing urban area;
5. Environmental, energy, economic and social consequences;
6. Retention of agricultural land as defined, with Class I being the highest priority for
retention and Class VI the lowest priority; and,
7. Compatibility of the proposed urban uses with nearby agricultural activities.
2. Coordination.
a. Within an urban growth boundary City and County land use regulations and standards shall be
mutually supportive, jointly proposed and adopted, administered and enforced, and plans to
integrate the type, timing and location of development of public facilities and services in a
manner to accommodate demand as urbanizable lands become more urbanized, and to guide the
community's growth.
b. Urban development shall be permitted in areas where services are available or can be provided
in a manner which will minimize costs related to necessary urban services such as schools,
parks, highways, police, garbage disposal, fire protection, libraries and other facilities and
services.
PAGE 4 OF 10 — EXHIBIT "A" TO ORDINANCE 2011-017
c. Deschutes County adopts by reference the goals, policies, programs, elements, and statements
of intent of the Redmond Comprehensive Plan, the officially adopted comprehensive plan for
the City of Redmond and its surrounding Urban Growth Boundary.
3. Residential development.
a. Residential developments should be located so that they are convenient to places of
employment and shopping facilities, and they should be developed in ways which are consistent
with the character of the topography and soils on the site. Residential areas should offer a wide
variety of housing densities in locations best suited to each.
b. Residential densities indicated on general plans should be respected and reflected in City and
County codes, ordinances and development policies.
c. In residential areas, development should be encouraged which have side yards or rear yards
along arterial streets as a means of reducing congestion through turning movements in and out
of driveways.
d. Higher density residential areas should be concentrated near commercial services and public
open space.
4. Commercial.
a. Commercial facilities should be allocated in a reasonable amount and in a planned relationship
to the people they will serve. Any future expansion of commercial uses should be developed as
centers rather than strips and very carefully considered so that they do not cause unnecessary
traffic congestion and do not detract from the appearance of the community.
b. Neighborhood commercial shopping areas, parks, school and public uses may be located within
residential districts and should have development standards which recognize the residential
area. Development standards should be established for those commercial uses which will
provide off-street parking, landscaping, access control, sign regulations and design review.
c. Strip commercial developments along highways should not be extended. Commercial uses
along major streets and highways shall be subject to special development standards relating to
landscaping, setbacks, signs and median strips. No further commercial development outside
urban growth boundaries, rural service centers, planned developments, or destination resorts
shall be permitted.
d. All commercial shopping centers shall be subject to special development standards relating to
setbacks, landscaping, physical buffers, screening, access, signs, building heights and design
review. Care shall be taken to control the size of any new commercial developments that may
be required as growth occurs. Sites shall not be oversized to a point where additional uses
which would generate traffic from outside the intended service area are necessary to make the
development an economic success.
5. Industrial.
a. Community efforts should be directed toward preserving prime industrial lands for industrial
purposes. Industrial areas shall be protected from incompatible commercial and residential
uses.
b. Industrial areas of the community shall be located where necessary seryices can be provided
and with good access to transportation facilities.
c. Community efforts should be directed toward improving the general appearance of commercial
and industrial areas so that they make a positive contribution to the environment of the
community.
d. Industrial areas shall provide for new industry in a park -like setting.
e. All industrial centers shall be subject to special development standards relating to setbacks,
landscaping physical buffers, screening, access, signs, building heights and design review.
6. Community appearance.
a. Because of slow natural growth and their effective use as a visual and noise buffer, and their
relationship to air quality, trees or stands of trees shall be protected whenever feasible in
industrial, commercial, residential and other urban developments.
PAGE 5 OF 10 — EXHIBIT "A" TO ORDINANCE 2011-017
b. Community appearance shall continue to be a major concern. Landscaping, sign regulations
and building design review shall contribute to an improved environment. Major natural
features such as rock outcrops, stream banks, canyons, or stands of trees should be preserved as
a community asset as the area develops.
c. Attempts by each community to identify those characteristics which give the community its
individual identity and to preserve and expand those characteristics as growth occurs shall be
encouraged by the County.
d. Sign regulations shall be adopted which limit the size, location and number of signs in
commercial and industrial areas and have amortization provisions to remove existing signs
which do not conform with the regulations within a reasonable period of time.
7. Urban transportation.
a. Expressways and arterial streets should have landscaped median strips wherever possible
together with left -turn refuge lanes. Public transportation routes should be encouraged
throughout the area and, if necessary, special provisions made in street design to accommodate
ways.
b. Streets and highways should be located and constructed in a manner which will accommodate
both current and future traffic needs. Implementation of arterial and collector road systems
should be joint County and City effort with strict time schedules and priorities.
c. Interurban transportation facilities should be located in or near the central business district or
main highway. Special consideration will be needed to evaluate public transportation needs and
possibilities within the urban area.
d. Except for major arterial and collector streets, street patterns in residential areas should be
designed to provide convenient access to each living unit but not encourage through -traffic.
Major and collector streets should be secured and developed under a strict time frame so that a
reasonable circulation pattern will result.
e. Provisions should be considered which will permit mass transit vehicles on arterial and
collector streets within residential areas in the future.
8. Facilities and services.
a. Efforts should be made over a sustained period of time to place utility lines underground in
existing and new residential areas.
b. Parks should be located within walking distance of every dwelling unit in the community.
Parks should be centrally located and easily accessible to the areas they are intended to serve
(see Recreation).
c. Certain private recreational uses such as golf courses or riding stables can be successfully
integrated into residential areas provided the location, design and operation are compatible with
surrounding residential developments.
d. Fire protection in the planning area should be considered as a common problem by the City,
County, water district and the fire protection district, and equipment should reflect the character
of land uses in the community.
e. Efforts should be made to encourage Federal and State agencies to locate in urban areas.
f. Efforts should be made to group public offices in a more or less common location as a
convenience to the public.
9. Other.
a. In many cases, home occupations are a legitimate use within residential areas and should be
permitted provided that the use displays no outward manifestations of business other an a small
business sign attached to the wall of the house.
b. Recreation vehicle storage should be permitted in planned residential areas and these facilities
shall be landscaped and otherwise screened from adjacent residential uses.
c. Consistent with policies in the Historic and Cultural chapter rehabilitation and/or
redevelopment of older residential areas shall be encouraged.
PAGE 6 OF 10 — EXHIBIT "A" TO ORDINANCE 2011-017
d. All development in Deschutes County shall comply with all applicable state and federal rules,
regulations and standards.
(Ord. 2006-018 §1, 2006; Ord. 2005-023 §1, 2005; Ord. 2002-005 §1, 2002; Ord. 2000-017 §1, 2000; Ord.
92-051, 1992; PL -20, 1979)
23.48.040. Urban Reserve Area Policies.
1. Redmond Urban Reserve Area. The following policies apply to the division and development of
land in the area designated Redmond Urban Reserve on the County Comprehensive Plan map.
a. The Redmond Urban Reserve Area (RURA) shall be designated with an urban reserve
boundary located on the County's Comprehensive Plan Map.
b. The County shall implement the Urban Reserve Area designation through the application of a
RURA Combining Zone. The text of this combining zone shall be added and maintained in
Title 18, County Zoning, of the Deschutes County Code.
c. Until included in the Redmond Urban Growth Boundary, lands zoned Multiple Use
Agricultural, Surface Mining, Rural Residential, or EFU in the RURA shall continue to be
planned and zoned for rural uses, but in a manner that ensures a range of opportunities for the
orderly, economic and efficient provision of urban services when these lands are included in
the urban growth boundary.
d. The County, by designating a RURA, shall adopt and implement land use regulations that
ensure development and division of land in the Multiple Use Agricultural, Surface Mining or
Rural Residential zoning districts, will not hinder the efficient transition to urban land uses
and the orderly and efficient provision of urban services.
These land use regulations shall include:
1. Prohibition on the creation of new parcels less than ten acres;
2. Regulations that prohibit zone changes or plan amendments allowing more intensive
uses, including higher residential density, than permitted by the acknowledged zoning in
effect as of the date of establishment of the urban reserve area. Such regulations shall
remain in effect until such time as the land is included in the Redmond Urban Growth
Boundary.
e. Partitions of land zoned Exclusive Farm Use shall be allowed according to state law and the
County Zoning Ordinance.
f The City of Redmond and Deschutes County shall adopt a RURA Agreement consistent with
their respective comprehensive plans and the requirements of OAR 660-021-0050.
g. New arterial and collector right-of-way established in the RURA shall meet the right-of-way
standards of Deschutes County or the City of Redmond, whichever is greater.
h. The siting of new development shall be regulated along existing and future arterial and
collector right-of-way, designated on the County's Transportation System Plan, for the
purpose of ensuring the opportunity for future urban development and public facilities.
i. The siting of a single family dwelling on a legal parcel is permissible if the single family
dwelling would otherwise have been allowed under law, existing prior to the designation of
the parcel as part of the Redmond Urban Reserve Area.
j. City of Redmond shall collaborate with Deschutes County to assure that the County owned
1800 acres in the RURA is master planned before it is incorporated into Redmond's urban
growth boundary.
(Ord. 2002-005 §1, 2002; Ord. 2000-017 §1, 2000; Ord. 92-051, 1992; PL -20, 1979; Ord. 2005-023 §1,
2005)
PAGE 7 OF 10 — EXHIBIT "A" TO ORDINANCE 2011-017
23.48.050. Regional Economic Opportunity Policies.
1. Deschutes County supports a multi -jurisdictional cooperative effort to pursue a regional approach
to establish a competitive supply of sites particularly designed to address out -of -region industries
that may locate in Central Oregon.
2. Deschutes County recognizes the importance for maintaining an appropriate available large -lot
industrial land supply that is readily developable in Central Oregon.
3. The Central Oregon Large Lot Industrial Regional Economic Opportunity Analysis (REOA)
dated May 31 2011 and the City of La Pine Strengths and Weaknesses outlined on Pages 59 and
60 of Exhibit C to Ordinance 2011-017 are incorporated and adopted by reference herein.
Findings from the REOA recognize:
a. The Central Oregon region, comprised of Jefferson, Crook and Deschutes counties and its
respective cities recognize the market reality that the region currently serves as an integrated
cohesive economic unit, sharing work force and commercial amenities, and should be
marketed as such to increase its perceived scale in the market.
b. The Central Oregon region needs a critical mass of competitive and diverse vacant,
developable large lot industrial sites in order for site selectors representing potential industrial
recruitment to consider the region along with all of the other needed support factors
including adequately skilled workforce workforce training programs, worker housing,
supportive local government, utility services, transportation, and quality of life.
c. Developing and maintaining a supply of large readily available industrial sites is not currently
part of regional economic development efforts. therefore the region's jurisdictions have
developed Goal 9 compliance based on projected growth, and the attraction of a large
industrial user that is recognized as an exogenous impact to these projections.
d. The unmet short-term need for large -lot industrial sites in Central Oregon is an additional
component of a city's twenty-year land supply.
e. Competing as a cohesive region allows Central Oregon to market a larger available work
force, the size of which is often a key locational criterion for firms.
f The need for large lot industrial sites is a regional need, with the economic development
benefits widely distributed regardless of the specific firm location.
g, Large -lot industrial lands supply initiative exceeds the capacity of any single jurisdiction.
h. A large -lot industrial site is 50 acres or larger with specific site attributes and amenities.
i. Short term supply is a readily available and developable inventory of 6 large sites in at least
three separate jurisdictions provide for an adequate supply to prospective industries or site
selectors. Two of the 6 sites are to be 100 to 200 acres and one site would be 200+ acres.
l At least one of the 6 short term (readily available/developable in 6 months) sites would
consist of a major, centrally located large-scale development property near the region's
geographic and workforce center, and where key infrastructure is in place and has excess
capacity, either the north end of Bend or the southern end of Redmond, east of Highway 97.
4. The short term supply of 6 sites is a community development objective of Central Oregon for
establishing Large -lot industrial uses.
5. The supply of up to 6 sites, located in existing or amended Urban Growth Boundaries (UGBs)
addresses the short-term large lot industrial regional land need in Central Oregon and can be
incorporated as an additional component of a city's twenty year land supply.
6. The supply of up to 17 long-term sites, which includes the 6 short term sites, represents the
currently projected (total) 20 -year regional land supply of this special industrial land
classification.
7. Replenishing the short term inventory shall be initiated when large lot employers demonstrate a
commitment to short term sites by completing land use entitlements and executing site -
development permits, including building permits, subject to the following replenishment
mechanism:
PAGE 8 OF 10 — EXHIBIT "A" TO ORDINANCE 2011-017
a. To maintain a competitive short term ready supply of large -lot employment sites with the
characteristics specified in the REOA, only a total of six vacant and developable sites shall
ever be made available at one time.
8. Central Oregon cities and counties shall within 6 months of the adoption of this policy. execute
Memorandums of Understanding (MOUS) that specify:
a. Cities, after conducting alternative lands and public facility analyses, but prior to any
entitlement process receive formal support from Economic Development for Central Oregon
(EDCO) that potential sites contain necessary site characteristics and standards as defined in
the REOA to attract large -lot industrial recruiters.
b. Establishment of a regional authority, responsible for formally supporting regional large lot
industrial sites after cities identify potential candidates through alternative lands and public
facility analyses, but prior to any entitlement process.
c. A Regional Advisory Committee (RAC) will be convened (at least) annually with each city
and county providing activity reports relating to the short term land supply. Facilitating the
RAC will be the responsibility of the counties (ORS 195.025) and will rotate each year
starting alphabetically with Crook County.
9. Cities are required to comply with state land use program requirements when changing land
designations or amending a UGB, including conducting a local inventory to deteuuine whether a
local deficit exists.
10. Cities are directed to not conduct regional inventories where and because the counties have
established plan policies under their statutory coordinating authority to limit and disperse the
number of sites that can be included in the various UGBs as well as a program to manage the
supply.
11. To meet the requirements of Division 024 when amending a UGB to include a site in compliance
with the regional plan cities will be required to provide an estimated employment projection for
the site at full build out within the planning period by applying the REOA analysis and plan to the
particulars of the site.
12. When a city investigates and concludes that a potential qualifying large lot industrial site exists or
can be assembled inside of its UGB (and the existing site zoning will be amended with the large
lot overlay zoning assignment) that city must replace that original [future] buildable land supply
or evaluate and conclude that the previously identified future land supply is no longer needed.
13. Participating cities. when examining candidate sites, shall conduct their alternative land and
public facilities analyses and inventory of employment lands by first examining if the short-term
regional need can be met inside the implementing city's UGB, before assessing lands adjacent to
it as required by state law. Cites are not required to evaluate inventories throughout the region
because the adopted county plan has limited supply and specified site dispersal as specified by the
REOA.
14. Participating cities. after conducting alternative lands and public facility analyses, but prior to any
entitlement process shall receive formal support from EDCO that candidate site(s) contain
necessary site characteristics and attributes, as defined in the REOA, to attract large -lot industrial
recruiters
15. Deschutes County. fulfilling coordination duties specified in ORS 195.025 shall approve and
update its comprehensive plan when participating cities within their jurisdiction legislatively or
through a quasi-judicial process designate regionally significant sites.
16. Participating cities in Deschutes County (and in the 3 -County REOA region) shall adopt a large -
lot industrial overlay zone that establishes and maintains the region's large lot industrial site
inventory and manages usage of such lands.
17. Deschutes County supports EDCO, a non-profit organization facilitating new job creation and
capital investment to monitor and advocate for the region's efforts of maintaining an inventory of
appropriate sized and located industrial lots available to the market
PAGE 9 OF 10 — EXHIBIT "A" TO ORDINANCE 2011-017
18. Deschutes County, in collaboration with other Central Oregon's counties and cities and EDCO
will coordinate and seek assistance from state agencies to continually support a regional
economic development replenishment strategy.
19. Deschutes County will strengthen long-term confidence in the economy by building innovative
public to private sector partnerships.
20. Deschutes County will collaborate with regional public and private representatives to engage the
Oregon Legislature and state agencies and their commissions to address public facility.
transportation and urbanization issues that can stymie economic development opportunities in
Central Oregon.
21. Participating cities in Deschutes County will support the existing economic base by providing
adequate land and infrastructure to make city sites attractive to businesses willing to invest in
high job density and industrial activity.
22. Cities in Deschutes County will continue to provide high quality physical infrastructure to serve
the needs of business.
(Ord. 2010-017 41, 2011)
PAGE 10 OF 10 — EXHIBIT "A" TO ORDINANCE 2011-017
"****" Denotes portions of the code not amended by Ordinance 2011-017.
Chapter 23.52. ECONOMY
23.52.020. Goals.
23.52.020. Goals.
1. To diversify and improve the economy of the area.
2. To enhance and maintain the existing natural resource, commercial and industrial segments of the
Local economy.
3. To build a strong and thriving regional economy by establishing and actively maintaining a
competitive portfolio of large lot employment sites and coordinating public investments policies
and regulations to support regional and state economic development objectives in Central Oregon.
(2010-017 §2 2011. Ord. 2002-005 §1, 2002; Ord. 2000-017 §1, 2000; Ord. 80-203, 1980; PL -20, 1979)
PAGE 1 OF 1 — EXHIBIT "B" TO ORDINANCE 2011-017
secttow 4.2 Rrba mizatLovt
Background
This section describes the coordination between the County and the cities of Bend, La Pine,
Redmond and Sisters on Urban Growth Boundaries (UGBs) and Urban Reserve Areas (URAs).
Statewide Planning Goal 2 recognizes the importance of coordinating land use plans.
"City, county, state and federal agency and special district plans and actions
related to land use shall be consistent with the comprehensive plans of cities and
counties and regional plans adopted under ORS Chapter 268."
Oregon Revised Statute 197.015(5) goes further to define comprehensive plan coordination.
"A plan is "coordinated" when the needs of all levels of governments, semipublic
and private agencies and the citizens of Oregon have been considered and
accommodated as much as possible."
Population
An important basis for coordinating with cities is adopted population projections. Having an
estimate of anticipated population is the first step to planning for future growth and
conservation. ORS 195.025(1) requires counties to coordinate local plans and population
forecasts. The County oversees the preparation of a population forecast in close collaboration
with cities. This is important because the population of the County has increased significantly in
recent decades and a coordinated approach allows cities to ensure managed growth over time.
Table 4.2.1 — Population Growth in Deschutes County 1980 to 2000
Sources
1980
1990
2000
2010
Population Research Center July 1 estimates
62,500
75,600
116,600
172,050
US Census Bureau April I counts
62,142
74,958
115,367
157,733
Source: As noted above
In 1996 Bend, Redmond, Sisters and the County reviewed recent population forecasts from the
Portland State University Center Population and Research Center (PRC) and U.S. Census
Bureau, Department of Transportation, Woods and Poole, Bonneville Power Administration
and Department of Administrative Services Office of Economic Analysis. After reviewing these
projections, all local governments adopted a coordinated population forecast. It was adopted by
Deschutes County in 1998 by Ordinance 98-084.
The results of the 2000 decennial census and subsequent population estimates prepared by the
PRC revealed that the respective populations of the County and its incorporated cities were
growing faster than anticipated under the 1998 coordinated forecast. The cites and the County
re-engaged in a coordination process between 2002 and 2004 that culminated with the County
adopting a revised population forecast that projected population to the year 2025. It was
adopted by Ordinance 2004-012 and upheld by the Land Use Board of Appeals on March 28,
2005.
The following table displays the 2004 coordinated population forecast for Deschutes County
and the UGBs of the cities of Bend, Redmond, and Sisters.
DESCHUTES COUNTY COMPREHENSIVE PLAN - 201 I
CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION
Table 4.2.2 - Coordinated Population Forecast 2000 to 2025
Year
Bend UGB
Redmond UGB
Sisters UGB
Unincorporated
County
Total County
2000
52,800
15,505
975
47,320
116,600
2005
69,004
19,249
1,768
53,032
143,053
2010
81,242
23,897
2,306
59,127
166,572
2015
91,158
29,667
2,694
65,924
189,443
2020
100,646
36,831
3,166
73,502
214,145
2025
109,389
45,724
3,747
81,951
240,811
Source: 2004 Coordinated Population Forecast for Deschutes County
The process through which the County and the cities coordinated to develop the 2000-2025
coordinated forecast is outlined in the report titled "Deschutes County Coordinated
Population Forecast 2000-2025: Findings in Support of Forecast."
The fourth city in Deschutes County is the City of La Pine. Incorporated on November 7,
2006, the City of La Pine's 2006 population estimate of 1,590 was certified by PRC on
December 15, 2007. As a result of La Pine's incorporation, Deschutes County updated its
Coordinated Population Forecast with Ordinance 2009-006.
The purpose of this modification was to adopt a conservative 20 year population forecast for
the City of La Pine that could be used by city officials and the Oregon Department of Land
Conservation and Development to estimate its future land need and a UGB.
The following table displays the coordinated population forecast for Deschutes County, the
UGBs of the cities of Bend, Redmond, and Sisters, and La Pine from 2000 to 2025. By extending
the growth rate to the year 2025, La Pine's population will be 2,352. The non -urban
unincorporated population decreases by 2,352 from its original projection of 81,951, to 79,599.
Table 4.2.3 - Coordinated Population Forecast 2000 to 2025, Including La Pine
Year
Bend
UGB
Redmond
UGB
Sisters
UGB
La Pine
UGB
Unincorporated
County
Total County
2000
52,800
15,505
975
-
47,320
116,600
2005
69,004
19,249
1,768
-
53,032
143,053
2010
81,242
23,897
2,306
1,697
57,430
166,572
2015
91,158
29,667
2,694
1,892
64,032
189,443
2020
100,646
36,831
3,166
2,110
71,392
214,145
2025
109,389
45,724
3,747
2,352
79,599
240,811
Snurre 7004 Cnnrdinntpd Pnnularinn Fnreracr fnr Desrhurec Cnunry - undated 2009
2030 Population Estimate
This Comprehensive Plan is intended to manage growth and conservation in the
unincorporated areas of the County until 2030. Because the official population forecast extends
only to 2025, County staff used conservative average annual growth rates from the adopted
population forecast to estimate population out to 2030. The following table estimates
Deschutes County population by extending the adopted numbers out an additional five years.
2
DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011
CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION
Table 41.4 — Deschutes County 2030 Population Forecast
Year
Bend
UGB
Redmond
UGB
Sisters
UGB
La Pine
UGB
Unincorporated
County
Total County
2030
fes....-�.
119,009
...:.......
51,733
L...J -...L. nnnA
4,426
!`-....J:-..uA o....I..,:
2,632
C
88,748
L...... L..I.....
266,538
County e
Bend's average annual growth rate from 2025 to 2030 is 1.70%
Redmond's average annual growth rate from 2025 to 2030 is 2.50%
Sisters' based their population on forecasted rates of building growth, residential housing units, and persons per dwelling unit
La Pine's average annual growth rate from 2025 to 2030 is 2.20%
Deschutes County's unincorporated area average annual growth rate from 2025 to 2030 is 2.20%
As the pie chart below indicates, if population occurs as forecasted, 67% of the County's
population will reside in urban areas by 2030.
In 2030
Figure 4.1Deschutes County 2030
Estimated Population
Such growth will undoubtedly require strategically managing the provision of public services and
maintaining adequate amounts of residential, commercial and industrial lands. Growth pressures
will also require programmatic approaches to maintain open spaces, natural resources, and
functional ecosystems that help define the qualities of Deschutes County.
Urban Growth Boundary Amendments
Bend
The City of Bend legislatively amended its UGB as part of a periodic review acknowledgment in
December 2004. The Bend City Council and the Board of County Commissioners adopted
concurrent ordinances that expanded the Bend UGB by 500 acres and satisfied a 20 year
demand for industrial land.
In July 2007, the Bend -La Pine School District received approvals to expand the City of Bend
UGB to include two properties for the location of two elementary schools, one at the Pine
Nursery, the other on Skyliner Road.
Sisters
The City of Sisters legislatively amended its UGB in September 2005 when its City Council and
the Board of County Commissioners adopted respective ordinances. The Sisters UGB
expansion covered 53 acres and satisfied a 20 year demand for residential, commercial, light
DESCHUTES COUNTY COMPREHENSIVE PLAN — 2011 3
CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION
industrial, and public facility land. In March 2009, Sisters amended their UGB to facilitate the
establishment of a 4 -acre fire training facility for the Sisters/Camp Sherman Fire District.
Redmond
The City of Redmond legislatively amended its UGB in August 2006 when its City Council and
the Board of County Commissioners adopted respective ordinances. The Redmond UGB
expansion covered 2,299 acres and satisfied a 20 year demand for residential and neighborhood
commercial land.
La Pine
In 2010 La Pine adopted its first Comprehensive Plan. La Pine established a UGB that matches
the city limits, because the City contains sufficient undeveloped land for future housing,
commercial and industrial needs over a 20 -year period. The Plan map includes land use
designations intended to provide an arrangement of uses to ensure adequate and efficient
provision of public infrastructure for all portions of the City and UGB.
Urban Reserve Area
Redmond
In December 2005, Redmond City Council and the Board of County Commissioners adopted a
5,661 acre URA for the City. It is the first URA in Central Oregon because most cities find
planning farther into the future than the 20 -year UGB timeframe, challenging.
Coordination
As noted above, Statewide Goal 2 and ORS promote land use planning coordination. The
purposes of the urbanization goals and policies in this section are to provide the link between
urban and rural areas, and to provide some basic parameters within which the urban areas of
Deschutes County can develop, although the specific comprehensive plan for each community
remains the prevailing document for guiding growth in its respective area. These policies
permit the County to review each city's comprehensive plan to ensure effective coordination.
The Redmond and Deschutes County Community Development Departments received the Oregon
Chapter of American Planning Association's (OAPA) Professional Achievement in Planning Award in
2006 for the "Redmond Urban Reserve Area / Urban Growth Boundary
Expansion Project.".
The following quote taken from the Oregon Chapter of the American
Planning Association's 2006 Awards Program shows why the Redmond
Community Development Department was chosen for this award.
"An outstanding effort to address Redmond's rapid population growth,
including the successful designation of an Urban Reserve and the
imminent designation of an Urban Growth Boundary, a "Framework
Plan" with a requirement for master planning, and the establishment of
"Great Neighborhood Principles."
Regional Economic Opportunity Analysis
Deschutes, Crook and Jefferson counties and their respective cities, in 2010 and 2011,
undertook an unprecedented regional evaluation of the economic opportunities and constraints
associated with users of large industrial parcels in the Central Oregon region. During the
4
DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011
CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION
1990s, the Central Oregon Region undertook a dramatic transformation from an economy
concentrated largely in wood products into a service based economy serving a growing and
diverse tourism and household base. Accelerated in -mi ration and tourism -rowth :ave wa to
rapid economic expansion, escalation in home prices, and a systematic shift in the local
economy from goods producing activities to service oriented industries. While initially
representing a diversification of the local economy, this shift led to an over -reliance upon these
types of industries. During the recent recession, the regional economy's vulnerabilities became
apparent.
Suitable land for today's industrial development forms emerged as one of Oregon's most severe
development challenges. As a region, Central Oregon specifically targeted basic industries with
large lot industrial needs to support the region's economic development objectives. Through
Oregon's statewide planning framework, a Regional Economic Opportunity Analysis (REOA)
evaluated Central Oregon's opportunities, competitiveness ability, and willingness to recruited
and organically grown firms requiring new large scale development models. That REOA, dated
May 31, 2011 is attached to the findings in Exhibit C to Ordinance 2011-017.
The Central Oregon region needs a critical mass of competitive and diverse vacant, developable
industrial sites in order for site selectors representing potential industrial recruitment
opportunities to consider the region. A regional consensus has been agreed upon to establish
and pro -actively manage a regional land supply of large -lot industrial sites to enable the region
to become competitive in industrial recruitment. This regional strategy includes individual site
infrastructure improvement assessment and implementation programs and requirements.
Regional planning, management, and governance of a sustainable large -lot industrial vacant land
supply will involve Central Oregon city and county governments, including advice and guidance
from Central Oregon Planning Directors Association, Economic Development in Central
Oregon and Oregon Business Development Department to assure an adequate, self -renewing
regional supply of developable and competitive vacant industrial sites
DESCHUTES COUNTY COMPREHENSIVE PLAN -201 I
CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION
5
sect%ovt, 4.2 i,t.rbatA,tzattovt Po1,16es
Goals and Policies
Goal I Coordinate with cities, special districts and stakeholders to support
urban growth boundaries and urban reserve areas that provide an
orderly and efficient transition between urban and rural lands.
Policy 4.2.1 Participate in the processes initiated by cities in Deschutes County to create
and/or amend their urban growth boundaries.
Promote and coordinate the use of urban reserve areas.
Review the idea of using rural reserves.
Coordinate with cities, special districts and stakeholders on urban
growth area zoning for lands inside urban growth boundaries but
outside city boundaries.
Use urban growth area zoning to coordinate land use decisions inside urban
growth boundaries but outside the incorporated cities.
Negotiate intergovernmental agreements to coordinate with cities on land use
inside urban growth boundaries and outside the incorporated cities.
Develop urban growth area zoning with consideration of the type, timing and
location of public facilities and services provision consistent with city plans.
Adopt by reference the comprehensive plans of Bend, La Pine, Redmond and
Sisters, as the policy basis for implementing land use plans and ordinances in
each city's urban growth boundary.
Coordinate with cities, special districts and stakeholders on policies
and zoning for lands outside urban growth boundaries but inside
urban reserve areas.
Policy 4.2.2
Policy 4.2.3
Goal 2
Policy 4.2.4
Policy 4.2.5
Policy 4.2.6
Policy 4.2.7
Goal 3
Policy 4.2.8
Policy 4.2.9
Policy 4.2.10
Designate the Redmond Urban Reserve Area on the County Comprehensive
Plan Map and regulate it through a Redmond Urban Reserve Area (RURA)
Combining Zone in Deschutes County Code, Title 18.
In cooperation with the City of Redmond adopt a RURA Agreement consistent
with their respective comprehensive plans and the requirements of Oregon
Administrative Rule 660-021-0050 or its successor.
The following land use policies guide zoning in the RURA.
a. Plan and zone RURA lands for rural uses, in a manner that ensures the
orderly, economic and efficient provision of urban services as these lands are
brought into the urban growth boundary.
b. New parcels shall be a minimum of ten acres.
c. Until lands in the RURA are brought into the urban growth boundary, zone
changes or plan amendments shall not allow more intensive uses or uses that
6
DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011
CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION
Policy 4.2.11
Goal 4
Policy 4.2.12
Policy 4.2.13
Policy 4.2.14
generate more traffic, than were allowed prior to the establishment of the
RU RA.
d. For Exclusive Farm Use zones, partitions shall be allowed based on state law
and the County Zoning Ordinance.
e. New arterial and collector rights-of-way in the RURA shall meet the right-of-
way standards of Deschutes County or the City of Redmond, whichever is
greater, but be physically constructed to Deschutes County standards.
f. Protect from development existing and future arterial and collector rights-of-
way, as designated on the County's Transportation System Plan.
g. A single family dwelling on a legal parcel is permitted if that use was permitted
before the RURA designation.
Collaborate with the City of Redmond to assure that the County -owned 1,800
acres in the RURA is master planned before it is incorporated into Redmond's
urban growth boundary.
To build a strong and thriving regional economy by establishing and
actively maintaining a competitive portfolio of large lot employment
sites and coordinating public investments, policies and regulations to
support regional and state economic development objectives in
Central Oregon.
Deschutes County supports a multi -jurisdictional cooperative effort to pursue a
regional approach to establish a competitive supply of sites particularly designed
to address out -of -region industries that may locate in Central Oregon.
Deschutes County recognizes the importance for maintaining an appropriate
available Targe -lot industrial land supply that is readily developable in Central
Oregon.
The Central Oregon Large Lot Industrial Regional Economic Opportunity
Analysis (REOA) dated May 31 2011 and the City of La Pine Strengths and
Weaknesses outlined on Pages 59 and 60 of Exhibit C to Ordinance 2011-017
are incorporated and adopted by reference herein. Findings from the REOA
recognize:
a. The Central Oregon region, comprised of Jefferson, Crook and Deschutes
counties and its respective cities recognize the market reality that the region
currently serves as an integrated, cohesive economic unit, sharing work force
and commercial amenities, and should be marketed as such to increase its
perceived scale in the market.
b. The Central Oregon region needs a critical mass of competitive and diverse
vacant, developable large lot industrial sites in order for site selectors
representing potential industrial recruitment to consider the region, along
with all of the other needed support factors including adequately skilled
workforce, workforce training programs, worker housing, supportive local
government, utility services, transportation, and quality of life.
c. Developing and maintaining a supply of large readily available industrial sites is
not currently part of regional economic development efforts, therefore the
region's jurisdictions have developed Goal 9 compliance based on projected
DESCHUTES COUNTY COMPREHENSIVE PLAN - 201 1 7
CHAPTER 4 URBAN GROWTH MANAGEMENT REFERENCES
Policy 4.2.15
Policy 4.2.16
Policy 4.2.17
Policy 4.2.18
Policy 4.2.19
growth, and the attraction of a large industrial user that is recognized as an
exogenous impact to these projections.
d. The unmet short-term need for large -lot industrial sites in Central Oregon is
an additional component of a city's twenty-year land supply.
e. Competing as a cohesive region allows Central Oregon to market a larger
available work force, the size of which is often a key locational criterion for
firms.
f. The need for large lot industrial sites is a regional need, with the economic
development benefits widely distributed regardless of the specific firm
location.
g, Large -lot industrial lands supply initiative exceeds the capacity of any single
jurisdiction.
h. A large -lot industrial site is 50 acres or larger with specific site attributes and
amenities.
i. Short term supply is a readily available and developable inventory of 6 large
sites in at least three separate jurisdictions provide for an adequate supply to
prospective industries or site selectors. Two of the 6 sites would be 100 to
200 acres and one site would be 200+ acres.
j. At least one of the 6 short term (readily available/developable in 6 months)
sites would consist of a major, centrally located large-scale development
property near the region's geographic and workforce center, and where key
infrastructure is in place and has excess capacity, either the north end of Bend
or the southern end of Redmond, east of Highway 97.
The short term supply of 6 sites is a community development objective of
Central Oregon for establishing large -lot industrial uses.
The supply of up to 6 sites, located in existing or amended Urban Growth
Boundaries (UGBs), addresses the short-term large lot industrial regional land
need in Central Oregon and can be incorporated as an additional component of
a city's twenty year land supply.
The supply of up to 17 long-term sites, which includes the 6 short term sites,
represents the currently projected (total) 20 -year regional land supply of this
special industrial land classification.
Replenishing the short term inventory shall be initiated when large lot employers
demonstrate a commitment to short term sites by completing land use
entitlements and executing site -development permits, including building permits,
subject to the following replenishment mechanism::
a. To maintain a competitive short term ready supply of large lot employment
sites with the characteristics specified in the REOA, only a total of six vacant
and developable sites shall ever be made available at one time.
Central Oregon cities and counties shall, within 6 months of the adoption of this
policy, execute Memorandums of Understanding (MOUs) that specify:
a. Cities, after conducting alternative lands and public facility analyses, but prior
to any entitlement process, receive formal support from Economic
Development for Central Oregon (EDCO) that potential sites contain
8
DESCHUTES COUNTY COMPREHENSIVE PLAN -2011
CHAPTER 4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION
Policy 4.2.20
Policy 4.2.21
Policy 4.2.22
Policy 4.2.23
Policy 4.2.24
Policy 4.2.25
Policy 4.2.26
necessary site characteristics and standards as defined in the REOA to attract
large -lot industrial recruiters.
b. Establishment of a regional authority, responsible for formally supporting
regional large lot industrial sites after cities identify potential candidates
through alternative lands and public facility analyses, but prior to any
entitlement process.
c. A Regional Advisory Committee (RAC) will be convened (at least) annually
with each city and county providing activity reports relating to the short term
land supply. Facilitating the RAC will be the responsibility of the counties
(ORS 195.025) and will rotate each year, starting alphabetically with Crook
County.
Cities are required to comply with state land use program requirements when
changing land designations or amending a UGB, including conducting a local
inventory to determine whether a local deficit exists.
Cities are directed to not conduct regional inventories where and because the
counties have established plan policies under their statutory coordinating
authority to limit and disperse the number of sites that can be included in the
various UGBs as well as a program to manage the supply.
To meet the requirements of Division 024 when amending a UGB to include a
site in compliance with the regional plan, cities will be required to provide an
estimated employment prosection for the site at full build out within the planning
period by applying the REOA analysis and plan to the particulars of the site.
When a city investigates and concludes that a potential qualifying large lot
industrial site exists or can be assembled inside of its UGB (and the existing site
zoning will be amended with the large lot overlay zoning assignment), that city
must replace that original [future] buildable land supply or evaluate and conclude
that the previously identified future land supply is no longer needed.
Participating cities, when examining candidate sites, shall conduct their
alternative land and public facilities analyses and inventory of employment lands
by first examining if the short-term regional need can be met inside the
implementing city's UGB, before assessing lands adjacent to it as required by
state law. Cites are not required to evaluate inventories throughout the region
because the adopted county plan has limited supply and specified site dispersal as
specified by the REOA.
Participating cities, after conducting alternative lands and public facility analyses,
but prior to any entitlement process, shall receive formal support from EDCO
that candidate site(s) contain necessary site characteristics and attributes, as
defined in the REOA, to attract large -lot industrial recruiters
Deschutes County, fulfilling coordination duties specified in ORS 195.025 shall
approve and update its comprehensive plan when participating cities within their
jurisdiction legislatively or through a quasi-iudicial process designate regionally
significant sites.
DESCHUTES COUNTY COMPREHENSIVE PLAN -201
CHAPTER 4 URBAN GROWTH MANAGEMENT REFERENCES
9
Policy 4.2.27
Policy 4.2.28
Policy 4.2.29
Policy 4.2.30
Policy 4.2.3 I
Policy 4.2.32
Policy 4.2.33
Participating cities in Deschutes County (and in the 3 -County REOA regionl
shall adopt a large -lot industrial overlay zone that establishes and maintains the
region's large lot industrial site inventory and manages usage of such lands.
Deschutes County supports EDCO, a non-profit organization facilitating new job
creation and capital investment to monitor and advocate for the region's efforts
of maintaining an inventory of appropriate sized and located industrial lots
available to the market
Deschutes County, in collaboration with other Central Oregon's counties and
cities and EDCO, will coordinate and seek assistance from state agencies to
continually support a regional economic development replenishment strategy.
Deschutes County will strengthen long-term confidence in the economy by
building innovative public to private sector partnerships.
Deschutes County will collaborate with regional public and private
representatives to engage the Oregon Legislature and state agencies and their
commissions to address public facility, transportation and urbanization issues
that can stymie economic development opportunities in Central Oregon.
Participating cities in Deschutes County will support the existing economic base
by providing adequate land and infrastructure to make city sites attractive to
businesses willing to invest in high iob density and industrial activity.
Cities in Deschutes County will continue to provide high quality physical
infrastructure to serve the needs of business.
10
DESCHUTES COUNTY COMPREHENSIVE PLAN - 2011
CHAPTER4 URBAN GROWTH MANAGEMENT SECTION 4.2 URBANIZATION
FINDINGS
PROPOSED PLAN AMENDMENT
The proposed amendments to Deschutes County's Comprehensive Plan are described
in Ordinance 2011-017, Exhibits A, B, and C. Added language is underlined and
deleted shown as ctrikethrough.
REVIEW CRITERIA
Ordinance 2011-017 formally adopts the 2011 Central Oregon Regional Economic
Opportunity Analysis (REOA) and several regional large -lot industrial land policies into
its comprehensive plan. Deschutes County lacks specific criteria in Deschutes County
Code (DCC) Titles 18, 22, or 23 for reviewing a legislative plan amendment.
Nonetheless, since Deschutes County is initiating one, the County bears the
responsibility for justifying that the amendments are consistent with Oregon Revised
Statutes (ORS), Statewide Planning Goals, Oregon Administrative Rules (OARs), and
its existing Comprehensive Plan.
The findings are organized as follows:
• Section (1) - ORS 195.025
• Section (2) - Statewide Planning Goal 1, Citizen Involvement
• Section (3) - Other ORS
• Section (4) - OAR Division 9, Economic Development
• Section (5) - Other Statewide Planning Goals
• Section (6) - Deschutes County Comprehensive Plan
• Section (7) - Deschutes County Comprehensive Plan Update
• Section (8) - Planning Commission Recommendation
Section (1), ORS 195.025
* ORS 195.025: (1) In addition to the responsibilities stated in ORS 197.175, each
county, through its governing body, shall be responsible for coordinating all planning
activities affecting land uses within the county, including planning activities of the
county, cities, special districts and state agencies, to assure an integrated
comprehensive plan for the entire area of the county.
Finding: Deschutes County, through its governing body, is exercising its statutory
coordinating authority to address an unmet regional need for large -lot industrial sites.
This authority will assure there is an integrated comprehensive plan between Deschutes
County and its respective cities by compelling Bend, La Pine, Redmond, and Sisters to
address a short-term specialized employment land need of six industrial sites, 50 acres
or larger in three different jurisdictions. Deschutes County is specifically fulfilling its
regional coordination responsibilities by formalizing, through policies, a regional
governance and land use planning framework that describe the roles and
PAGE 1 OF 60 - EXHIBIT "D" TO ORDINANCE 2011-017
responsibilities of a regional entity, such as Central Oregon Intergovernmental Council
(COIC).1 COIC serves as the Economic Development District representing Crook,
Deschutes and Jefferson counties as designated by the Economic Development
Administration.2 Deschutes County is applying its coordination authority to cities as
well, for those willing to fulfill this regional employment need, consistent with Oregon's
Statewide Planning Program. Deschutes County is now leading and encouraging the tri -
county region to coordinate as a single entity promoting large -lot industrial employments
sites that best serve the region as a whole to create family wage jobs, region economic
diversification and place Central Oregon on the map for regional, national and
international industrial recruitment.
In exercising its coordination authority, Deschutes County recognizes its responsibility
to explain how a regional approach to large -lot employment sites complies with
Oregon's land use system. To address testimony about this regional approach,
Deschutes County is explaining the reasons for its choices, citing supporting evidence
in the record, and making appropriate findings of compliance against applicable state
statutes, statewide planning goals, and administrative rules.
* ORS 195.025: (2) For the purposes of carrying out ORS chapters 195, 196 and 197,
counties may voluntarily join together with adjacent counties as authorized in ORS
190.003 to 190.620.
Finding: Deschutes County is voluntarily coordinating with Crook and Jefferson counties
and the cities of Prineville, Madras, Bend, Redmond Sisters and La Pine as authorized
in ORS 190.003- 190.620. Deschutes County wants to assure that Crook and Jefferson
counties also exercise their coordination authority with parallel plan amendments so
there is a collective and regional response to an unprecedented opportunity to establish
and maintain a supply of large -lot industrial sites in Central Oregon. These efforts will
result in the joint adoption of a REOA, produced by Johnson -Reid LLC, with technical
support from Business Oregon and Economic Development for Central Oregon, draft
policies, and findings.
Section (2) — Statewide Planning Goal 1, Citizen Involvement
Goal: To develop a citizen involvement program that insures the opportunity for citizens
to be involved in all phases of the planning process.
The citizen involvement program shall incorporate the following components:
1. Citizen Involvement -- To provide for widespread citizen involvement.
1
COIL is a Council of Governments organized under ORS 190 by the three counties and seven cities of Central
Oregon. COIC is governed by a 15 -member board made up of elected officials appointed by each of the member
governments and appointed representatives of key economic sectors.
Central Oregon Comprehensive Economic Development Strategy, Approved by the Central Oregon Community
Investment Board, November 29, 2007, 5. One function of the Economic Development District is developing and
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 growth.
PAGE 2 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
2. Communication -- To assure effective two-way communication.
3. Citizen Influence -- To provide the opportunity for citizens to be involved in all phases
of the planning process.
4. Technical Information -- To assure that technical information is available in an
understandable form.
5. Feedback Mechanisms — To assure that citizens will receive a response from policy-
makers.
Finding: Deschutes County has undertaken an extensive process to satisfy the
components of Goal 1. As demonstrated below, Deschutes County has been
transparent and diligent in its commitment to allow ample opportunities for citizens and
stakeholders to participate in this process, raise important questions, offer opinion about
the REOA, and to receive answers about why local policy makers have chosen to adopt
the policies and actions included in this comprehensive plan amendment.
Deschutes County received a Technical Assistance (TA) Grant from the Department of
Land Conservation and Development in 2010 to evaluate Central Oregon's
opportunities, competitiveness, and ability to recruit new and locally grown firms
requiring new large scale development models. Johnson -Reid LLC, was selected from a
pool of consultants to develop a REOA. The TA Grant enabled Deschutes County to
kick-off this project by convening an industrial land forum on June 28, 2010 in
Redmond. Representatives from Johnson -Reid LLC, Business Oregon, IronWolf
Community Resources, Economic Development for Central Oregon, and Deschutes
County spoke at the event. The purpose was to engage business leaders and listen to
their perspective about large -lot industrial sites and regional competitiveness.
Over the course of eleven months, the REOA then went through several iterations with
the assistance of a Regional Advisory Committee (RAC). The RAC consisted of Central
Oregon cities, counties, Johnson -Reid LLC, Business Oregon, Department of Land
Conservation and Development, Department of State Lands, COIC, 1,000 Friends of
Oregon, Economic Development for Central Oregon, Central Oregon Association of
Realtors and private area developers. The RAC met officially six times and reviewed
several iterations of the REOA before it was finalized in May 2011, one month prior to
the completion of the TA Grant. The culmination of the project was a Regional Forum
held in Bend at the Deschutes Service Center on May 24, 2011 to share the results of
the REOA and answer audience questions.
Deschutes County formally initiated a post acknowledgment plan amendment on June
23, 2011. The Deschutes County Planning Commission held two hearings on August 11
and 25 respectively and received two sets of testimony from 1,000 Friends of Oregon
criticizing certain elements of the REOA. After receiving all the testimony, including
Business Oregon and Economic Development for Central Oregon's written and oral
statements, the Planning Commission closed the hearing on August 25, deliberated and
recommended the Board of County Commissioners (Board) adopt the plan amendment.
The Board held two hearings, one on September 25, the other on October 31. In
PAGE 3 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
recognition of the technical questions raised by 1,000 Friends of Oregon, the Board on
October 3 directed staff to:
• Retain the services of Jerry Johnson with Johnson -Reid LLC, the firm hired to
produce the REOA to respond in writing.
• Coordinate with Business Oregon and Economic Development for Central
Oregon to revisit 1,000 Friends' arguments, respond in writing and/or testify on
the 31st
• Coordinate with the Department of Land Conservation and Development to
revisit 1,000 Friends arguments, respond in writing, and testify on the 31st
• Reconvene the RAC prior to the public hearing on the 31st to update everyone
on the County's efforts to coordinate expert testimony and provide substantial
evidence in the record.
In response to the following questions and argument raised by 1,000 Friends of Oregon,
the county finds that 1,000 Friends of Oregon largely has not cited review criteria or
standards against which the county's legislative decision must be reviewed against, nor
has it asserted factual errors in the county's analysis or interpretation of information
before it. Lacking specific allegations of error in its legislative decision, the county finds
that it can do little more than reiterate information from the record to better explain its
decision. The county finds that clearer explanation of its decision furthers the obligations
to provide effective and meaningful citizen involvement as required by Statewide
Planning Goal 1, but that the county is not obligated to defend its decision against
criticism or challenge that is not sufficiently detailed to enable the county to understand
the concern and offer a full response.
The county finds that in this legislative action it must demonstrate compliance with state
statutes, the statewide planning goals and associated administrative rules in a manner
that weighs and balances its interpretation of information with that of other participants
in this planning process. Deschutes County is basing its decision on an adequate
factual base supported by substantial evidence in the record and is choosing to rely on
the REOA and expert testimony provided by Johnson -Reid LLC, Business Oregon and
Economic Development for Central Oregon.3 The County recognizes that when a
reasonable person could reach the decision made by the local government, in view of
all the evidence in the record, the choice between conflicting evidence belongs to the
local government.4
• What trends, activities, and success nationally indicate an opportunity exists to
attract large -lot industrial users in Central Oregon? How do national trends
translate or apply to Central Oregon?
s DLCD v. Douglas County, 37 Or LUBA 129, 132 (1999) (citing 1000 Friends of Oregon v. City of North Plains, 27 Or
LUBA 372, 377-78, affd 130 Or App 406, 882 P2d 1130 (1994). Substantial evidence is evidence a reasonable
person would rely on in reaching a decision.
° Younger v. City of Portland, 305 Or 346, 360, 752 P2d 262 (1988).
PAGE 4 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
Deschutes County finds that to have a fully -developed program that serves the
broadest range of area citizens and businesses, it is critical to be competitive in
the segment of economic development that depends on the availability of readily -
served, large -lot employment sties. As such, as a matter of policy, the county
chooses to identify and implement a program to create a large -lot land supply
that enables Central Oregon to be a competitive region for industrial recruitment.
Central Oregon's traditional industrial base remains active in the local economy,
and the region would like to increase its emphasis on industrial employment to
strengthen that base.5 The region's supply of affordable land, low cost utilities,
quality of life, and organized economic development landscape makes it an
attractive option for growth in many traded sector industries.5 While many locally
based service -sector businesses are an essential part of a region's business mix
and quality of life, they are not as effective in creating new living wage jobs.7
Central Oregon economic development efforts have been negatively impacted by
a lack of readily available large -lot industrial sites. Major employers in traded
sector industries (export industries) are the primary drivers of economic growth,
providing the impetus for net growth in the regional economy and supporting a
wide range of support industries. At the state and local level, policy makers
understand the importance that large-scale employers can have on the local
economy. In 2007 Central Oregon was home to three firms with 1,000 or more
employees and an additional five with at least 500.8
In a structural sense, globalization has changed the way manufacturers conduct
business. Cost and efficiency are the central tenants of an increasingly
competitive market. Firms are increasingly pressured to develop more capital
intense production models, placing a greater emphasis on economies of scale,
as well as production efficiency and flexibility. Time -to -market for firms has
become an even more crucial factor as they make decisions to locate new plants
and facilities. The result has been the emergence of a clear real estate trend,
creating a global demand for large development ready industrial sites, with the
immediacy of utility services (both public and private sector) of critical
importa nce.9
Deschutes County's choice to pursue a regional approach to large -lot industrial
employment sites is also consistent with Central Oregon's Comprehensive
Economic Development Strategy (CEDS). According to this report, two of Central
Oregon's Long -Term Priority Goals are:
Goal XIII: Sufficient supply of land affordable for commercial, industrial
and residential development.
e Johnson -Reid LLC, Central Oregon Large Lot Industrial Regional Economic Opportunity Analysis, May 31, 2011, 1.
6 Ibid.
Ibid., 4.
8 Ibid.
9 Ibid., 2.
PAGE 5 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
* Goal XVI: Ongoing regional planning is in place to preserve and enhance
the region's economic appeal and effect orderly economic development.
One of Central Oregon Community Investment Board's short-term priorities
promotes:
* Structures and processes of public and private organizations to effectively
create, adapt, foster and sustain economic development in Central
Oregon.10
Through the CEDS planning process, past regional needs and issues processes,
the 2007 infrastructure needs inventory, and through other methods of economic
analysis, the following projects, programs and activities have been identified for
focus over the next six years:
* Support of industry clusters.
* Assist in the retention, expansion and recruitment of secondary wood
products, aerospace production and parts, targeted sectors including
apparel and sporting goods, aerospace including information technology,
renewable energy, light industrial and manufacturing, and research and
development.11
As noted in the CEDS, new traded sector and investment is critical for building a
strong regional economy. A strategy that increases prosperity for all Central
Oregon residents in rural and urban communities by balancing, diversifying and
developing the region's economy has been promoted by economic development
theorists and practitioners as a critical underpinning of a health community or
regional economy. Three objectives promote:
1. Facilitating new job creation and economic diversification through
recruitment of diverse new traded -sector companies across all industries
that offer family -wage employment;
2. Facilitating new job creation through expansion of existing traded -sector
companies across all industries that offer family -wage employment; and
3. Supporting retention of existing traded -sector companies across all
industries that offer family -wage employment.12
• What is it about competing regions and their industrial land supply that has
enabled their success?
Successful local and regional industrial recruitment in the 21st Century must
consider global competition factors. Communities, regions and states that focus
primarily or exclusively on outdated governance paradigms are ill suited for
0 See note 2 above (Central Oregon Comprehensive Economic Development Strategy), 4 and 17.
11
Ibid.
12 Ibid., 14.
PAGE 6 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
keeping up with fast paced global economic and industrial marketplace changes.
Industries must be nimble to be successful in the competitive global marketplace.
Manufacturers must be able to quickly produce new products at expanded,
renovated or new production facilities in "just -in -time" fashion. Often
accomplished through on-site expansion on areas reserved for that purpose,
industrial site selectors must choose sites large enough to build -in future
expansion capacity. Government must be responsive to align its regulatory and
process requirements to meet market demands if it wishes to capture the
considerable benefits of high value industrial development.13
Appendix B of the REOA provides examples in the Pacific Northwest and the
Western United States of local governments proactively planning for industrial
development.14 Communities like Quincy, Washington for example, examined
their community assets, in this case large capacities of electricity resulting from
the closure of several foundries and invested in large -lot industrial sites that
today accommodate six large acreage industrial users:16
Deschutes County chooses to initiate a similar program to compete for large -lot
industrial employers. The REOA documents the strengths and weaknesses of
Central Oregon's economy. Deschutes County, by exercising its statutory
coordination authority, wants to leverage its strengths and employ new economic
development tools to create a dynamic and competitive large -lot industrial land
supply portfolio and inventory that appeal to industrial site selectors. According to
the REOA and testimony by Business Oregon and Economic Development for
Central Oregon, Central Oregon needs a critical mass of competitive and diverse
vacant, developable industrial sites in order for site selectors representing
potential industrial recruitment to consider the region.16
• Does a competitive portfolio of large -lot employment site create a strong and
thriving economy?
The county finds that maintaining a competitive portfolio of employment sites is
not a guarantee of a strong and thriving economy, but examples abound of the
benefits of having such a supply. The county finds that as a matter of policy
providing the opportunity for businesses that need such a portfolio of sites is
better for the community than not providing the opportunity. For example, citing
Economic Development for Central Oregon's written testimony, the Facebook
industrial site in Prineville already has 52 full-time employees involved in the
operation of the facility and expects an additional 12-15 jobs next year. The
majority of these jobs are highly technical and well-paid. Additionally, more than
13 See note 5 above, (Johnson -Reid LLC, May 31, 2011, REOA), 2.
14 Jerald Johnson, Johnson -Reid LLC, Response to REOA Critiques and Questions Submitted by 1000 Friends of
Oregon, October 21, 2011, 8. 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.
15 See note 5 above, (Johnson -Reid LLC, May 31, 2011, REOA), 60-69. Hillsboro, OR, Austin, TX, Hermiston, OR,
Morrow County, OR, Reno, NV, and Salt Lake City, UT are also profiled.
76Ibid., 1.
PAGE 7 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
1,200 workers helped construct the facility over the past 20 months, with an
average of 300 on the site on any given day.17 Local leaders in Prineville and
Crook County have been very vocal and public in their support of attracting data
centers because they have seen the positive economic impact of multiple
hundreds of millions of dollars being spent in their community. These facilities
require extensive investments in infrastructure and they require the large
industrial -zoned land with access to municipal infrastructure that the REOA
seeks to identify.18
• Why should Central Oregon as a region invest limited resources to provide for
large -lot industrial sites (50 acres>)?
In 2008, the Oregon Economic and Community Development Department (now
Business Oregon) recognized that 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 the last few years. This change in
demand and the changing nature of OECDD's account base clearly document
that global business trends have emerge as key elements of Oregon's
economy.19 Global accounts have tended to be very attractive to the state and
community bringing leading edge technology, large capital investments, labor
intensive and high wage rate employment opportunities. The shortage and even
lack of large sites is now resulting in opportunity loss to our communities and
state.20
Deschutes County finds that as a matter of policy, it may choose how to structure
its community and economic development activities, provided those activities are
consistent with applicable local, state and federal laws and policies, including
those for land use planning. Central Oregon chooses to invest in large -lot
industrial sites because it is an additional tool to broaden the region's economic
attractiveness. While trade sector industries are primary drivers of job creation,
the REOA does not assume that large employers are those drivers. Instead,
large -lot industrial demand recognizes that accommodating these types of users
reflects a reasonable component of an economic development strategy.21
Furthermore, Economic Development for Central Oregon recognizes that the
recruitment of companies in new and existing industries is an 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.22
17
Roger Lee, Economic Development of Central Oregon Technical Response to 1,000 Friends of Oregon Objections
to Central Oregon REOA and Deschutes County Plan Amendment, August 17, 2011. 2.
18 Ibid., 3.
19 Bev Thacker, Rail Served & Large Industrial Sites Memorandum, March 11, 2008, 1.
20 Ibid., 2 and 3. The chart on page 3, while not a comprehensive record, shows that the demand for large sites has
increased in the measurement period and that employment has moved to higher employment densities.
21 Jerry Johnson, Johnson -Reid LLC, Response to May 17th Letter from 1,000 Friends, May 31, 2011, REOA,
A2ppendix C, 2.
2 Roger Lee, Economic Development for Central Oregon Letter, June 3, 2011, REOA. Appendix C, 3.
PAGE 8 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
Business Oregon is mandated by ORS 197.717(2) to "provide a local
government with state and national trend" information to assist in compliance
with ORS 197.712 (2)(a)." The department reviewed the Central Oregon area,
and made the following recommendations:
Given its current size and expected growth, it is not unreasonable to
assume that the region being examined as part of the current Central
Oregon Large Lot Economic Opportunity Analysis should have a mix of
large -lot sizes for potential employers and site selectors to choose from.
Such a mix would have at least multiple ready sites in the 200, 100 and
50 -acre plus acreage ranges in order to meet expected 20 year land
supply needs.23
According to Business Oregon, Central Oregon experienced four active
recruitments in the past six months looking at industrial lots 50 acres and
greater. One firm was looking for a site in the 100 to 150 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 and it is not known if
the company has reached a final location decision. That search started in the
50-100 lot size and then expanded to the 150-200 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.24
• There is no evidence that large industrial lots mean many jobs.
The county finds that its policy decision to promote a portfolio of large -lot
employment sites is not merely an empirical exercise relying on the experiences
of other regions or jurisdictions. The county further finds that regulations
governing land use planning do not establish legal standards or thresholds by
which to judge the efficacy of public policy of economic development. Lacking
such standards, the county finds that evidence in the record supports the
decision to proceed with the plan amendment. For example, Economic
Development for Central Oregon's written testimony notes that, in Bend, the
largest technology company, Bend Research, has had more than a dozen
companies spun out of its operations as such that employment counts of these
"new" businesses now greatly exceeds its own employment. It is highly doubtful
that these companies would be in Central Oregon if not for the parent company.25
• Are jobs from large -lot employers better than small lot employers?
23 See note 5 above (Johnson -Reid LLC, May 31, 2011, REOA), 46.
24 See note 14 above (Jerald Johnson, Johnson -Reid LLC, October 21, 2011), 5.
25 See note 17 above (Roger Lee, August 17, 2011), 3.
PAGE 9 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
Deschutes County finds that the current proposal is not one where a particular
class of employers is better or more valuable than another, and that participation
in this regional approach enhances rather than detracts from employment
opportunities and quality of life in the region. The county is choosing targeted
basic industries with large -lot industrial needs to support the region's economic
development objectives. While many locally based service -sector businesses
are an essential part of a region's business mix and quality of life, they are not as
effective in creating new living wage jobs.26 Since 2002, wage levels in Central
Oregon have averaged a 3.2% annual rate of growth, comparatively better than a
2.8% annual growth rate at the State level. However, Deschutes County's
average 2009 wage level of $35,295 was well below the statewide average.
Lower relative wage rates coupled with housing affordability concerns can limit
the region's ability to attract a high quality workforce to the region.27
The county finds that analysis in 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 complimentary, not competitive.28 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. Economic Development for Central
Oregon 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.29
• Evidence provided in the REOA, page 43, Figure 25, indicates that large
industrial lots would result in a net job loss in the region. It seems that
businesses with 20 or more employees are firing more people than they are
hiring. If this economic sector is shrinking in the western US generally, why
should we expect to see growth in Central Oregon in particular?
Johnson -Reid LLC, responded to this question by stating that 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 cited in 1000 Friends critique. The relevant metric for projecting
26 See note 5 above (Johnson -Reid LLC, May 31, 2011, REOA), 4.
27 Ibid., 20.
28 See note 21 above (Jerry Johnson, Johnson -Reid LLC, May 31, 2011, REOA, Appendix C), 3.
29 See note 22 above (Roger Lee, June 3, 2011) , 2.
PAGE 10 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
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.3°
The county finds that while trends identified in the REOA may lead one to a
particular opinion about the future, there is no guarantee that the trend will
continue into the future or if the issue is relevant to the broader effort to craft an
economic development strategy for the future of Central Oregon.31 Deschutes
County acknowledges that 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 1,000 Friends May 17 letter.32 Deschutes County and
Central Oregon are choosing to invest in large -lot industrial sites because the
industries targeted in the REOA have been deemed as the most likely to locate in
the region by both Business Oregon, Economic Development for Central Oregon,
and a finding reinforced by the subsequent research done by Johnson -Reid LLC.
Industries requiring large acreages that hold promise for the Central Oregon
region include: data centers, warehouse/distribution centers, and select high
technology/biosciences operations. According to global data center site selector
David Aaroe, (co-founder and principal, Fortis Construction), Central Oregon has
all the elements to rival Central Washington as a top location for the data center
industry in North America.33
As noted in the REOA, currently Central Oregon has a shortage of large vacant
industrial sites and is rarely a serious competitor for industrial recruitment due to
this scarcity. Again, Deschutes County chooses to adopt a REOA and implement
a large -lot industrial siting program because it is identified by established experts
as a roadmap to resolve this land supply shortage and improve the regional
economy and employment opportunities.
• REOA does not show that large companies would set up shop in a community
like ours.
The county finds that the REOA does not show that large companies would not
set up shop in the region. It is not the responsibility of the REOA to provide a
definitive, purely factual answer to policy and planning issues before decision
30 See note 14 above (Jerald Johnson, Johnson -Reid LLC, October 21, 2011).
31 See note 4 above (Younger v. City of Portland). The county is engaged in a legislative action for which it can make
its own interpretations of information before it, provided a reasonable person could reach a similar conclusion when
provided with potentially conflicting or competing interpretations.
z See note 21 above (Jerry Johnson, Johnson -Reid LLC, May 31, 2011, REOA, Appendix C), 3.
33 See note 17 above (Roger Lee, August 17, 2011), 3.
PAGE 11 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
makers. The REOA provides relevant information and analysis to inform elected
officials acting in their legislative capacity.
• Should each prospective industry identified in the REOA, pages 40-45 be
reviewed individually for warranting a site requirement between 50 to 200+ acres
based on its own site characteristic needs?
The Department of Land Conservation and Development does not believe these
steps are necessary.34 Deschutes County finds that it is reasonable to conclude
that prospective industries identified in the REOA should not be narrowly or
individually reviewed against site characteristics. There is a common
misperception that an industry such as distribution, manufacturing or food
processing has a single consistent set of site requirements that make planning
easy. Another related source of confusion is the inconsistent use and
understanding of the term "site." Sometimes it means a single tax lot and a single
user. Sometimes it means a location where raw land is developed into an
industrial park that might include multiple related or unrelated end users or even
a mix of use types.35 According to the REOA, several factors contribute to lot -
size demanded by industrial users:
• Requirements for setbacks, access, parking and environmental mitigation and
avoidance;
* Industries want buffering for security, storage and noise;
* Many industries require land for expansion for their long-term business plan;
* Large parcels are also a good way to build a cluster of industries around a
high profile anchor business; and
* Efficiencies can be obtained by clustering industrial users into large master -
planned business parks.36
• The REOA's recommended competitive large -lot industry inventory, page 46, is
difficult to discern given the short term and long term totals. Are the short term
needs in addition to the long term needs, or do the long term needs incorporate
the short term needs?
As noted by Johnson -Reid LLC, the long-term needs number is inclusive of the
short term needs figure.37 Deschutes County finds that the REOA provides
reasonable information and analysis pointing to an unmet land need for large -lot
employment sites, currently not part of regional economic development efforts.38
Deschutes County, by exercising its statutory coordination authority, is choosing
to focus on a short-term inventory that identifies six, 50 acre or greater sites, in
34
Karen Swirsky and Tom Hogue, Department of Land Conservation and Development October 18, 2011 Letter, 2.
ss Ibid.
36 See note 5 above (Johnson -Reid LLC, May 31, 2011, REOA), 3.
37 See note 14 above (Jerald Johnson, Johnson -Reid LLC, October 21, 2011), 9.
38 See note 5 above (Johnson -Reid LLC, May 31, 2011, REOA), 5.
PAGE 12 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
three different jurisdictions, with two of those sites being between 100 to 200
acres, and one over 200 acres.39 Oregon's prescriptive land use planning system
nonetheless requires, that Deschutes County and (given its regional emphasis)
Central Oregon identify the employment land supply for a twenty year planning
period4° Therefore, in this case, a total of seventeen sites represent the twenty
year regional land supply of large -lot employment sites.'"
The county finds that a twenty year land supply from an economic development
standpoint is inconsequential. Business Oregon recognizes that Central Oregon's
first priority should be establishing a readily available and developable inventory
of six large sites in at least three separate jurisdictions.42 Economic development
professionals such as Business Oregon advise the county to emphasize a short-
term supply with mechanisms to insure consistent replenishment because of the
uncertainty of trying to forecast long-term needs in a period of rapidly changing
conditions. Johnson -Reid LLC, concurs. 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.43
Viewed from this perspective, the long-term (20 year) supply's value is in
identifying sites that can replace the short term inventory if absorbed or if market
conditions and needs shift. Deschutes County is proposing the following policies
that concentrate this program's efforts on the short-term supply, including
safeguards that ensure replenishment sites are not exploited in violation of
Oregon's land use planning program:
The unmet short-term need for large -lot industrial sites in Central Oregon is an
additional component of a city's twenty-year land supply.
* Short term supply is a readily available and developable inventory of 6 large
sites in at least three separate jurisdictions provide for an adequate supply to
prospective industries or site selectors. Two of the 6 sites are to be 100 to
200 acres and one site would be 200+ acres.
* At least one of the 6 short term (readily available/developable in 6 months)
sites would consist of a major, centrally located large-scale development
property near the region's geographic and workforce center, and where key
ss Ibid., 46-47.
40 See OAR 660-009-0025(2). http://arcweb.sos.state.or.us/paqes/rules/oars 600/oar 660/660 009.html
q1 See note 5 above (Johnson -Reid LLC, May 31, 2011, REOA), 46.
42 Michael J. Williams, Business Oregon Letter, May 19, 2011, REOA, Appendix C, 3.
as See note 14 above (Jerald Johnson, Johnson -Reid LLC, October 21, 2011), 2.
PAGE 13 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
infrastructure is in place and has excess capacity, either the north end of
Bend or the southern end of Redmond, east of Highway 97.44
• The supply of up to 6 sites, located in existing or amended Urban Growth
Boundaries (UGBs), addresses the short-term large -lot industrial regional
land need in Central Oregon and can be incorporated as an additional
component of a city's twenty year land supply.
The supply of up to 17 long-term sites, which includes the 6 short term sites,
represents the currently projected (total) 20 -year regional land supply of this
special industrial land classification.
• Replenishing the short term inventory shall be initiated when large lot
employers demonstrate a commitment to short term sites by completing land
use entitlements and executing site -development permits, including building
permits, subject to the following replenishment mechanism:
a. To maintain a competitive short term ready supply of large -lot
employment sites with the characteristics specified in the REOA, only a
total of six vacant and developable sites shall ever be made available at
one time.
The policies above recognize that projecting the demand for industrial land in the
50 acre or greater size range is inherently highly speculative, as it is a thinly
traded and highly competitive sector. With fewer transactions and multiple areas
competing for these transactions, there is an unusually high degree of
uncertainty in any forecast. The degree of uncertainty however, is offset by
Central Oregon emphasizing a short term ready supply, with a mechanism to
replace supply in a timely manner when needed. The notion of replenishment is
always to maintain an adequate short-term supply of sites. It can be triggered
when a site is committed to development. Deschutes County is choosing to
define a large -lot employer's commitment to a site when it completes the land
use entitlement process and executes site development permits (ex. grading),
including building permits.
• What is the 20 -year employment land supply for the REOA?
Deschutes County, by exercising its statutory coordination authority, is choosing
to focus on a short-term inventory that identifies six, 50 acre or greater sites, in
three different jurisdictions, with two of those sites being between 100 to 200
acres, and one over 200 acres. Oregon's prescriptive land use planning system
nonetheless requires, that Deschutes County and (given its regional emphasis)
44 See note 5 above (Johnson -Reid LLC, May 31, 2011, REOA), 47. In the professional opinion of the economic
development professionals contributing to this analysis, a competitive portfolio of industrial sites would include a
collection of large industrial parcels in some selected communities, and a major, centrally located large-scale
development near the region's geographic and workforce center, and where key infrastructure is in place and has
excess capacity. This would be optimally located on the north end of Bend, but infrastructure challenges will make
this choice problematic for at least the short-term. The next most optimal location is on the southern end of
Redmond, east of Highway 97. The area has few neighbors, possible secondary transport access and most of the
municipal and franchise utilities with excess capacity.
PAGE 14 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
Central Oregon identify the employment land supply for a twenty year planning
period. Therefore, in this case, a total of seventeen sites represent the twenty
year regional land supply of large -lot employment sites. As noted by Johnson -
Reid LLC, 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.45
• How does the REOA conclude that Central Oregon needs lots substantially
larger than those in and around Portland?
The county finds that the REOA has been appropriately and reasonably tailored
to address conditions and policies unique to the Central Oregon region. The
county finds that comparisons to other regions are useful and instructive, but not
determinative, of plans and policies for the region. The county finds that in this
legislative effort, no comparison of employment needs to the Portland
metropolitan area, or other region, is required or necessarily persuasive.
The REOA is an economic development driven effort, with extensive input from
Economic Development for Central Oregon and Business Oregon. The
recommended inventory is intended to reflect a regionally and nationally
competitive portfolio of large industrial lots. The REOA recommends adoption of
the short term inventory, not the long term. Oregon's land use planning system
nonetheless requires the identification of a twenty-year land need. As discussed
above, the longer term inventory's value is in identifying sites that can replace the
short term inventory if absorbed or if market conditions and needs shift.
Deschutes County therefore is choosing through policies to identify the logical
steps to maintain a competitive short-term inventory while still complying with
OAR 660-009 through the adoption of land use policies.
• The REOA claims a land need that far exceeds the land need identified by any
other Oregon jurisdiction when viewed in light of expected employment growth.
Why is Central Oregon's land need so disproportionate to any other jurisdiction in
the state?
The county finds that its interpretation of information and analysis in the REOA
supports adoption of the legislative proposal before it. The county further finds
that estimates of land need are based on best available information and should
not be held to an unreasonably high level of precision. Accordingly, comparison
to other jurisdictions in Oregon is dependent on different information and
analysis, and may not be relevant to conditions in Central Oregon.
45 See note 14 above (Jerald Johnson, Johnson -Reid LLC, October 21, 2011), 4.
PAGE 15 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
• Has the REOA fulfilled the requirement of OAR 660-009-0015(2) and the
requirement to identify the number of sites based on site characteristics typical of
expected uses?
The county finds that that the REOA provides a reasonable and sufficient factual
and analytical basis for the Board to conclude in this legislative action that
requirements of Statewide Planning Goal 9 are met. Both Goal 9 and Division
009 require that employment land planning be based on comparative location
advantages and an articulation of opportunities based on national, state, regional
and local trends. The REOA cites large -lot employment trends and dynamics of
the global market place, the strengths and challenges of Central Oregon's
economy and the opportunities for the region to compete for large -lot employers
in the data center, high technology and warehouse and distribution industries 46
Deschutes County is proposing the following policies that identify the specific
economic development opportunities being pursued:
* Deschutes County supports a multi -jurisdictional cooperative effort to pursue
a regional approach to establish a competitive supply of sites particularly
designed to address out -of -region industries that may locate in Central
Oregon.
* The Central Oregon region, comprised of Jefferson, Crook and Deschutes
counties and its respective cities recognize the market reality that the region
currently serves as an integrated, cohesive economic unit, sharing work force
and commercial amenities, and should be marketed as such to increase its
perceived scale in the market
* The Central Oregon region needs a critical mass of competitive and diverse
vacant, developable large -lot industrial sites in order for site selectors
representing potential industrial recruitment to consider the region, along with
all of the other needed support factors including adequately skilled workforce,
workforce training programs, worker housing, supportive local government,
utility services, transportation, and quality of life.
* The unmet short-term need for large -lot industrial sites in Central Oregon is
an additional component of a city's twenty-year land supply.
* Competing as a cohesive region allows Central Oregon to market a larger
available work force, the size of which is often a key locational criterion for
firms.
* Short term supply is a readily available and developable inventory of 6 large
sites in at least three separate jurisdictions provide for an adequate supply to
prospective industries or site selectors. Two of the 6 sites are to be 100 to
200 acres and one site would be 200+ acres.
* At least one of the 6 short term (readily available/developable in 6 months)
sites would consist of a major, centrally located large-scale development
46 See note 5 above (Johnson -Reid LLC, May 31, 2011, REOA), 7-11; 21-29; 30-34.
PAGE 16 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
property near the region's geographic and workforce center, and where key
infrastructure is in place and has excess capacity, either the north end of
Bend or the southern end of Redmond, east of Highway 97.47
• Has the REOA satisfied the requirements of Goal 9 by providing an employment
forecast that justifies the amount of land it concludes is required for large -lots
within the 20 -year planning period
Goal 9 and Division 009 do not require an employment forecast or planning
based on an initial employment forecast.48 The county finds that traditional
industrial land need determination is based on a formulaic approach, utilizing
population and employment projections applied to a square footage per
employee ratio to arrive at a total acreage number.49 Deschutes County is
choosing a different course, one that adopts a REOA that recognizes global
competition factors. Oregon's land use program as expressed in OAR 660-009,
while laudable does not structurally account for the recent demand of large -lot
employers and rapidly growing industries that are building production and
research capabilities to establish global scale. Additional demand comes from
industries looking for regional production or as a result of specific logistical
concerns. Facebook for an example chose an available and ready -to -develop
site in Prineville based upon an affordable and adequate water supply, affordable
energy prices, year round cool nights to reduce cooling costs, and various local
incentives, not a population or employment forecast produced by the city as
many as 19 years prior.50 Deschutes County acknowledges that unlike office
demand, the need for most types of industrial space is difficult to determine using
employment projections. Most industrial uses generate comparatively few jobs
per square foot of leasable area, and space needs have little to do with changes
in the numbers of jobs in production or distribution business.51
Deschutes County has drafted the following policy to comply with Oregon's land
use planning program, requiring an employment projection be prepared as an
input to a UGB amendment under Division 024 when changing land designations
or amending a UGB:
To meet the requirements of Division 024 when amending a UGB to include a
site in compliance with the regional plan, cities will be required to provide an
estimated employment projection for the site at full build out within the
planning period by applying the REOA analysis and plan to the particulars of
the site.
47 See note 44 above (Johnson -Reid LLC, May 31, 2011, REOA), 47 .
48 See note 34 above (Department of Land Conservation and Development October 18, 2011 Letter), 3.
49 See note 5 above (Johnson -Reid LLC, May 31, 2011, REOA), 3-4.
so Ibid., 4.
51 See note 42 above (Michael J. Williams, May 19, 2011), 2. The Urban Land Institute, a well-respected
organization in real estate, sustainable development and land use, has specifically deemphasized employment
growth as a determinant of the demand for industrial space in its leading publication on real estate market analysis.
PAGE 17 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
• Does the REOA and Deschutes County's plan amendment require that the
inventory for large -lot employment sites, OAR 660-009-0015(3) (immediate & 20
year) be completed as part of this legislative process?
The county finds that no requirement in state law requires it to at this time
complete an inventory or other analysis of how to meet identified need. The
necessary OAR 660-009 analysis will have to be in place at the time land
designations are changed or a UGB amended to comply with OAR 660-024.
Central Oregon's innovative approach proposed in the REOA splits the
determination of site need, the assignment of site dispersal and a site supply
management program legislated by Deschutes County's statutory coordination
authority from subsequent city actions that determine site deficit and location to
comply with Goal 14.52 Deschutes County is recommending the following plan
policies to comply with OAR 660-009-0015(3):
• Cities are required to comply with state land use program requirements when
changing land designations or amending a UGB, including conducting a local
inventory to determine whether a local deficit exists.
• Cities are directed to not conduct regional inventories where and because the
counties have established plan policies under their statutory coordinating
authority to limit and disperse the number of sites that can be included in the
various UGBs as well as a program to manage the supply.
• Is it accurate that once a 20 -year need is identified that the jurisdictions that
adopt this plan are under an obligation to bring in the entire amount under OAR
660-009-0025(2) and OAR 660-024-0050(4)
According to the REOA, large -lot employment sites are an unmet land need,
currently not part of regional economic development efforts. Deschutes County,
by exercising its statutory coordination authority, is choosing to focus on a short-
term inventory that identifies six, 50 acre or greater sites, in three different
jurisdictions, with two of those sites being between 100 to 200 acres, and one
over 200 acres. Oregon's prescriptive land use planning system nonetheless
requires that Deschutes County and (given its regional emphasis) Central
Oregon also identify the employment land supply for a twenty year planning
period (total land supply). A total land supply of seventeen sites represents the
twenty year regional land supply of large -lot employment sites.
It is important to acknowledge that a twenty year land supply from an economic
development standpoint is inconsequential. Business Oregon recognizes that
Central Oregon's first priority should be establishing a readily available and
developable inventory of six large sites in at least three separate jurisdictions.
Economic development, viewed outside the context of Oregon's land use
planning system would focus entirely on a short-term supply with mechanisms to
52 See note 34 above (Department of Land Conservation and Development October 18, 2011 Letter), 3.
PAGE 18 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
insure consistent replenishment. Viewed from this perspective, the long-term (20
year) supply's value is in identifying sites that can replace the short term
inventory if absorbed or if market conditions and needs shift. As noted above,
Deschutes County is proposing policies that concentrate this program's efforts on
the short-term supply, including safeguards that ensure replenishment sites are
not exploited. The following policies satisfy OAR 660-009-025(2) and 660-024-
0050(4):
• The supply of up to 17 long-term sites, which includes the 6 short term sites,
represents the (currently projected) total 20 -year land supply of this special
industrial land classification.
* Cities are directed to not conduct regional inventories where and because the
counties have established plan policies under their statutory coordinating
authority to limit and disperse the number of sites that can be included in the
various UGBs as well as a program to manage the supply.
• Does the number of sites required rely on `market choice?"
Johnson -Reid LLC, responded, stating 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.53
The county finds that the Oregon Court of Appeals recently opined that "market
choice is an infinitely pliable and elastic term" in the context urban growth
boundary planning.54 The commenter has not offered a workable definition of
"market choice" upon which Deschutes County can conclude whether or not this
legislative decision may turn. Therefore, Deschutes County declines to engage
in making a definitive conclusion about undefined terms. Economic recruitment
benefits from some degree of market choice. Firms evaluating prospective
locations are a more likely to consider Central Oregon if multiple appropriate
sites can be seen in a single trip. The region is hoping to establish and maintain
a "competitive portfolio" of large -lot industrial sites. This would include an
inventory of readily available and appropriate sites consistent with baseline
criteria, allowing the region to clear the initial site selection screening. To the
extent that multiple prospective sites are available in the region, Central Oregon's
competitive position would be enhanced as site selectors prefer to have multiple
options before physically visiting an area such as Central Oregon.55
As stated earlier, Deschutes County, by exercising its statutory coordination
authority, is choosing to focus on a short-term inventory that identifies six, 50
acre or greater sites, in three different jurisdictions, with two of those sites being
ss See note 14 above (Jerald Johnson, Johnson -Reid LLC, October 21, 2011), 9.
54 1000 FRIENDS OF OREGON v. LCDC. 239 P.3d 272 (2010) http://www.publications.ojd.state.or.us/A135375.htm
ss See note 5 (Johnson -Reid LLC, May 31, 2011, REOA), 46.
PAGE 19 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
between 100 to 200 acres, and one over 200 acres. Prioritizing short term sites
is substantiated in the REOA and by Business Oregon's written testimony
referenced in Appendix C. Oregon's land use planning system still requires that
Deschutes County and (given its regional emphasis) Central Oregon identify the
employment land supply for a twenty year planning period. As noted above, a
total of seventeen sites represent the twenty year regional land supply of large -lot
employment sites. This is strictly a land use planning requirement.
• What facts and assertions presented in the REOA justify the number of large -lot
industrial sites is needed?
As noted above, the county finds that the REOA provides adequate and
reasonable information and analysis upon which to base a decision in this
legislative action. The county finds that it is not the role of the REOA to provide
an absolute or definitive answer, without discussion and policy input from local
decision -makers, about a long-term need for employment land to advance
community livability in Central Oregon.
Deschutes County is choosing to rely on a methodology for gross land demand in
the large -lot segment. The REOA cites firms with more than 500 employees as a
general proxy for large -lot demand. According to Business Oregon, this is a very
conservative assumption.56 Using the current profile of firms by size in the
Western United States and Central Oregon, combined with birth and expansion
patterns, Johnson -Reid LLC, generated a model of annual large firm location
activity in the region.57 What is modeled is a prospective demand, assuming that
a competitive inventory is available and maintained, allowing the region to
capture a "fair share" of market activity.
• Figure 28 only uses the births and expansions of large businesses to determine
how many more businesses central Oregon should see in the next 20 years. For
land need purposes, shouldn't the net expansion rate be used?
As explained by Johnson -Reid LLC, 1,000 Friends of Oregon 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 they
appear 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 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.55
56 See note 42 above (Michael J. Williams, May 19, 2011), 2.
57 See note 5 above (Johnson -Reid LLC, May 31, 2011, REOA), 43-46.
ss See note 14 above (Jerald Johnson, Johnson -Reid LLC, October 21, 2011), 6-7.
PAGE 20 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
• Exactly what is the evidence that this need is "exogenous" or above and beyond
the needs already accounted for by the OED forecasts?
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.59
Johnson -Reid LLC, found that 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.69
As discussed above, there are a substantial number of large firms regularly
seeking sites that are not currently available within the region, precluding
economic development organizations such as Business Oregon and Economic
Development for Central Oregon from marketing the area to these prospects.61
Traditional formulaic approaches to Goal 9, relying on population and
employment projections do not account for global competition and market trends
associated with large -lot employers. The REOA documents national and state
economic trends that provide the basis for Deschutes County to pursue this
unmet land need.
Oregon's economic growth is expected to outpace growth at the national level.
By 2018, the State's employment is expected to grow by over 14% with Oregon's
population growing by 9% over the same interval. Additionally, Global Insight, a
ss Ibid., 9.
so Ibid., 2.
61 See note 5 above (Johnson -Reid LLC, May 31, 2011, REOA), 5.
PAGE 21 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
national leader in economic forecasting, project's Oregon's Growth State Product
to have the second highest growth rate in the nation in the coming years.
Through 2017, the OEA forecasts 223,000 new jobs in the Oregon economy.
Mirroring national forecasts, a significant share (41%) are expected to fall in
Professional & Business Services and Health Services. The state is expected to
add over 25,000 new manufacturing jobs based on the 2010 base, roughly 8,000
of which are expected to be high wage High Tech Manufacturing jobs.6
Changes in global business patterns have pressured firms to develop more
capital intense production models, placing a greater emphasis on economies of
scale, as well as production efficiency and flexibility. The result has been the
emergence of a clear real estate trend, creating a global demand for large
development ready industrial sites. Shifting global market factors have increased
the need for large -lot industrial sites over the last several decades. Warehouse
properties have substantially increased in size as distribution reflects increasing
returns to scale as well as the concentration of production in larger production
facilities. Production facilities are also increasingly scaled for global as opposed
to regional or national needs. The following are examples of recent warehouse
projects that have located to the State of Oregon, as compiled by Business
Oregon:
qtr wsMyon .:
Terant
5rfe Size aquae
Food e
Albany
Target
175 acres
1.3 million
Hermiston
Wal Mart
200 acres
1.3 million
Lebanon
Lowes
204 acres
+1.3 million
Salem
Home Depot
50 acres
500,000
As shown in the preceding table, the emerging module for distribution facilities
now regularly tops 1.0 million square feet of building area, with site sizes in
excess of 200 acres. Over 55 projects have shopped the State of Oregon over
the last ten years with site demand over 50 acres, averaging over 5 new projects
per year. Business Oregon currently has 10 estimated outstanding leads in this
size category. Business Oregon estimates that they see approximately 15
serious inquiries a year for large scale manufacturing sites. Combined with
warehouse/distribution inquiries, Business Oregon sees over 20 annual inquiries
a year statewide for large -lot industrial sites. As not all leads are picked up by
Business Oregon, one would expect the overall activity to be significantly higher.
63
Section (3) - Other ORS
* ORS 195.025: (1) In addition to the responsibilities stated in ORS 197.175, each
county, through its governing body, shall be responsible for coordinating all planning
activities affecting land uses within the county, including planning activities of the
62 Ibid., 16.
63 Ibid., 21-22.
PAGE 22 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
county, cities, special districts and state agencies, to assure an integrated
comprehensive plan for the entire area of the county.
Finding: See Section 1, page 1.
* ORS 195.025: (2) For the purposes of carrying out ORS chapters 195, 196 and 197,
counties may voluntarily join together with adjacent counties as authorized in ORS
190.003 to 190.620.
Finding: See Section 1, page 2.
* ORS 197.712: (1) In addition to the findings and policies set forth in ORS 197.005,
197.010 and 215.243, the Legislative Assembly finds and declares that, in carrying out
statewide comprehensive land use planning, the provision of adequate opportunities for
a variety of economic activities throughout the state is vital to the health, welfare and
prosperity of all the people of the state.
(2) By the adoption of new goals or rules, or the application, interpretation or
amendment of existing goals or rules, the Land Conservation and Development
Commission shall implement all of the following:
(a) Comprehensive plans shall include an analysis of the community's economic
patterns, potentialities, strengths and deficiencies as they relate to state and national
trends.
Finding: Deschutes County is proposing comprehensive plan amendments to comply
with the requirement to include an analysis of Central Oregon strengths and
weaknesses by adopting a REOA and several regional economic development policies
that recognize Central Oregon's potential for establishing and maintaining large -lot
industrial sites as it relates to state and national trends. The REOA identifies the
strengths and challenges of the Central Oregon economy and concludes that the
competitive characteristics of Central Oregon can be strengthened through taking a
regional approach to large -lot industrial siting.64 Even though some individual
jurisdictions in the region are too small to be considered viable candidates for many
targeted industries, it is imperative that Central Oregon act as a cohesive unit, sharing
work force and commercial amenities so it can be marketed as such to increase its
perceived scale and competitiveness in the global marketplace.
* ORS 197.712: (2)(b) Comprehensive plans shall contain policies concerning the
economic development opportunities in the community.
Finding: Deschutes County is exerting its statutory coordination authority by
collaborating with the cities of Bend, La Pine, Redmond, and Sisters, as well as
Jefferson and Crook counties to respond to a specific employment need identified in a
REOA for large -lot industrial sites. Deschutes County is choosing to adopt a REOA and
several regional industrial land policies to comply with ORS 197.712 (2)(b) that
64 Ibid., 25; 31-34.
PAGE 23 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
recognizes Central Oregon's economic development opportunities for establishing and
maintaining large -lot industrial sites. These policy choices, cited below, are supported
by findings with evidence cited in the REOA.65
* Deschutes County supports a multi -jurisdictional cooperative effort to pursue
a regional approach to establish a competitive supply of sites particularly
designed to address out -of -region industries that may locate in Central
Oregon.
• The Central Oregon region, comprised of Jefferson, Crook and Deschutes
counties and its respective cities recognize the market reality that the region
currently serves as an integrated, cohesive economic unit, sharing work force
and commercial amenities, and should be marketed as such to increase its
perceived scale in the market
• The Central Oregon region needs a critical mass of competitive and diverse
vacant, developable large -lot industrial sites in order for site selectors
representing potential industrial recruitment to consider the region, along with
all of the other needed support factors including adequately skilled workforce,
workforce training programs, worker housing, supportive local government,
utility services, transportation, and quality of life.
* The unmet short-term need for large -lot industrial sites in Central Oregon is
an additional component of a city's twenty-year land supply.
* Competing as a cohesive region allows Central Oregon to market a larger
available work force, the size of which is often a key locational criterion for
firms.
* ORS 197.712: (2)(c) Comprehensive plans and land use regulations shall provide for
at least an adequate supply of sites of suitable sizes, types, locations and service levels
for industrial and commercial uses consistent with plan policies.
Finding: As noted above, Deschutes County is exerting its statutory coordination
authority to compel cities to address an unmet large -lot industrial land need by adopting
a REOA and several regional industrial land policies to comply with requirements to
provide for an adequate supply of sites of suitable sizes, types, locations and service
levels for industrial uses. Deschutes County is choosing to focus on a short-term
inventory that identifies six, 50 acre or greater sites, in three different jurisdictions, with
two of those sites being between 100 to 200 acres, and one over 200 acres.
Regulations and comprehensive plan policies that provide an adequate supply of sites
of suitable sizes, types, locations and service levels for industrial uses will occur when
participating cities implement OAR 660 Division 9 and Division 24. The REOA identifies
site need characteristics for large -lot industrial sites and recommends a competitive
65 Ibid., 31 and 45. The REOA describes target industries with large lot needs that have a demonstrated track record
for creating enormous exogenous absorption of properly zoned industrial sites. Furthermore, the REOA identifies a
model of prospective demand based on annual large firm location activity. The model assumes that if a competitive
inventory is available and maintained in Central Oregon, the region can capture a "fair share' of market activity.
PAGE 24 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
large -lot industrial inventory.66 Deschutes County complies with ORS 197.712(2)(c) by
adopting the following policies:
• A large -lot industrial site is 50 acres or larger with specific site attributes and
amenities.
* Short term supply is a readily available and developable inventory of up to 6
sites in at least three separate jurisdictions in order to provide an adequate
supply to prospective industries or site selectors. Two of the 6 sites are to be
100 to 200 acres and one site would be 200+ acres.
* At least one of the 6 short term (readily available/developable in 6 months)
sites would consist of a major, centrally located large-scale development
property near the region's geographic and workforce center, and where key
infrastructure is in place and has excess capacity, either the north end of
Bend or the southern end of Redmond, east of Highway 97.
* The supply of up to 17 long-term sites, which includes the 6 short term sites,
represents the currently projected (total) 20 -year regional land supply of this
special industrial land classification.
* Replenishing the short term inventory shall be initiated when large lot
employers demonstrate a commitment to short term sites by completing land
use entitlements and executing site -development permits, including building
permits, subject to the following replenishment mechanism:
a. To maintain a competitive short term ready supply of large -lot employment
sites with the characteristics specified in the REOA, only a total of six
vacant and developable sites shall ever be made available at one time.
* Central Oregon cities and counties shall, within 6 months of the adoption of
this policy, execute Memorandums of Understanding (MOUs) that specify:
1 Cities, after conducting alternative lands and public facility analyses, but
prior to any entitlement process, receive formal support from Economic
Development of Central Oregon that potential sites contain necessary site
characteristics and standards as defined in the REOA to attract large -lot
industrial recruiters.
* Participating cities, when examining candidate sites, shall conduct their
alternative land and public facilities analyses and inventory of employment
lands by first examining if the short-term regional need can be met inside the
implementing city's UGB, before assessing lands adjacent to it as required by
state law. Cites are not required to evaluate inventories throughout the region
because the adopted county plan has limited supply and specified site
dispersal as specified by the regional EOA.
* ORS 197.712: (2)(d) Comprehensive plans and land use regulations shall provide for
compatible uses on or near sites zoned for specific industrial and commercial uses.
66 Ibid., 39 and 46.
PAGE 25 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
Finding: Deschutes County is exerting its statutory coordination authority to compel
cities to address an unmet large -lot industrial land need by adopting a REOA and
several regional industrial land policies to comply with the requirement for providing
compatible uses on or near sites zoned for specific industrial purposes. Regulations and
comprehensive plan policies that provide for compatible uses on or near sites zoned for
large -lot industrial uses will occur when participating cities implement OAR 660 Division
9 and Division 24. To fulfill its coordination role, Deschutes County complies with ORS
197.712(2)(d) by adopting the following policy:
* Participating cities in Deschutes County (and in the 3 -County REOA region)
shall adopt a large -lot industrial overlay zone that establishes and maintains
the region's large -lot industrial site inventory.
* ORS 197.712: (2) (g) Local govemments shall provide:
(A) Reasonable opportunities to satisfy local and rural needs for residential and
industrial development and other economic activities on appropriate lands outside urban
growth boundaries, in a manner consistent with conservation of the state's agricultural
and forest land base; and
(B) Reasonable opportunities for urban residential, commercial and industrial needs
over time through changes to urban growth boundaries.
Finding: Deschutes County is exerting its statutory coordination authority to compel
cities to address an unmet large -lot industrial land need by adopting a REOA and
several regional industrial land policies to comply with responsibilities to provide
reasonable opportunities for industrial lands to be accommodated through changes to
UGBs. Regulations and comprehensive plan policies that provide these opportunities to
satisfy industrial development on appropriate lands outside UGBs and overtime through
changes to UGBs will occur when participating cities implement OAR 660 Division 9 and
Division 24. Deschutes County complies with ORS 197.712(2)(g) by adopting the
following policies:
* Cities are required to comply with state land use program requirements when
changing land designations or amending a UGB, including conducting a local
inventory to determine whether a local deficit exists.
* Cities are directed to not conduct regional inventories where and because the
counties have established plan policies under their statutory coordinating
authority to limit and disperse the number of sites that can be included in the
various UGBs as well as a program to manage the supply.
* Participating cities, when examining candidate sites, shall conduct their
alternative land and public facilities analyses and inventory of employment
lands by first examining if the short-term regional need can be met inside the
implementing city's UGB, before assessing lands adjacent to it as required by
state law. Cites are not required to evaluate inventories throughout the region
because the adopted county plan has limited supply and specified site
dispersal as specified by the regional EOA.
PAGE 26 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
Section (4) - OAR Division 9, Economic Development
* OAR 660-009-0010 - Application
(1) This division applies to comprehensive plans for areas within urban growth
boundaries. This division does not require or restrict planning for industrial and other
employment uses outside urban growth boundaries. Cities and counties subject to this
division must adopt plan and ordinance amendments necessary to comply with this
division.
Finding: Deschutes County is fulfilling its statutory coordination responsibilities by
collaborating with the cities of Bend, La Pine, Redmond, and Sisters, as well as
Jefferson and Crook counties to respond to a specific employment need identified in a
REOA for large -lot industrial sites in Central Oregon. As noted above, Deschutes
County is adopting Ordinance 2011-017, which includes a REOA and several regional
industrial land policies to comply with OAR 660-0090-0010.
* OAR 660-009-0010: (2) Comprehensive plans and land use regulations must be
reviewed and amended as necessary to comply with this division as amended at the
time of each periodic review of the plan pursuant to ORS 197.712(3). Jurisdictions that
have received a periodic review notice from the Department (pursuant to OAR 660-025-
0050) prior to the effective date of amendments to this division must comply with such
amendments at their next periodic review unless otherwise directed by the Commission.
Finding: Deschutes County started its periodic review in 1988 and completed it on
January 23, 2003. In 2003, the Oregon Legislature amended ORS 197.629(3)
exempting counties from periodic review, excluding portions of its population within the
UGB of a city.
* OAR 660-009-0010: (3) Cities and counties may rely on their existing plans to meet
the requirements of this division if they conclude:
(a) There are not significant changes in economic development opportunities (e.g., a
need for sites not presently provided for in the plan) based on a review of new
information about national, state, regional, county and local trends; and
(b) That existing inventories, policies, and implementing measures meet the
requirements in OAR 660-009-0015 to 660-009-0030.
Finding: Existing economic development plans do not address a specific land need for
large -lot industrial sites. Deschutes County is amending its comprehensive plan under
its regional coordination responsibilities (ORS 195.025) to address global competition
factors for large -lot industrial sites. For a region to be attractive enough to motivate
industrial site selectors to visit, investigate and recommend the region, it must offer a
diversity of large -lot industrial sites (that are either served or serviceable) along with all
of the other needed support factors including: adequate size and skill level of the
workforce, workforce training programs, worker housing, supportive local government,
utility services and transportation, and quality of life. Industries know that to attract and
keep valuable employees, they need to locate in areas with desirable living
PAGE 27 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
environments offering quality of life amenities such as recreation, quality education
systems, shopping diversity, health care, and affordable and attractive housing. The
Central Oregon region is recognized as being endowed with an abundant supply of
such amenities.
The Central Oregon region needs a critical mass of competitive and diverse vacant,
developable industrial sites in order for site selectors representing potential industrial
recruitment opportunities to consider the region. One or two sites in one or two
jurisdictions will not be adequate to generate regional interest or a visit according to
industrial recruitment specialists from the Business Oregon. Deschutes County is
choosing to pursue a regional approach to establish a competitive supply of sites
particularly designed to address those (unaccounted for) out -of -region (and state)
industries that can locate in Central Oregon after shopping the globe for the best large -
lot industrial development site they can find. This type of land need (or demand) is
systematically missed and unaccounted for in conventional industrial land needs
assessments in Oregon communities, which often rely solely upon recent local trends to
establish forecasts.
* OAR 660-009-0010: (4) For a post -acknowledgement plan amendment under OAR
chapter 660, division 18, that changes the plan designation of land in excess of two
acres within an existing urban growth boundary from an industrial use designation to a
non -industrial use designation, or an other employment use designation to any other
use designation, a city or county must address all applicable planning requirements,
and:
(a) Demonstrate that the proposed amendment is consistent with its most recent
economic opportunities analysis and the parts of its acknowledged comprehensive plan
which address the requirements of this division; or
(b) Amend its comprehensive plan to incorporate the proposed amendment, consistent
with the requirements of this division; or
(c) Adopt a combination of the above, consistent with the requirements of this division.
Finding: Deschutes County is exerting its statutory coordination authority to compel
cities to address an unmet large -lot industrial land need by adopting a REOA and
several regional industrial land policies to comply with OAR 660-009-0010(4).
Deschutes County is not amending land within a UGB. Participating cities will need to
address this criterion when they conduct their alternative land and public facilities
analyses and inventory of employment lands when examining if the short-term regional
need can be met inside their respective UGBs. Deschutes County complies with this
subsection by adopting the following policies:
* Cities are required to comply with state land use program requirements when
changing land designations or amending a UGB, including conducting a local
inventory to determine whether a local deficit exists.
* Cities are directed to not conduct regional inventories where and because the
counties have established plan policies under their statutory coordinating
PAGE 28 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
authority to limit and disperse the number of sites that can be included in the
various UGBs as well as a program to manage the supply.
* When a city investigates and concludes that a potential qualifying large -lot
industrial site exists or can be assembled inside of its UGB (and the existing
site zoning will be amended with the large -lot overlay zoning assignment),
that city must replace that original [future] buildable land supply or evaluate
and conclude that the previously identified future land supply is no longer
needed.
* Participating cities, when examining candidate sites, shall conduct their
alternative land and public facilities analyses and inventory of employment
lands by first examining if the short-term regional need can be met inside the
implementing city's UGB, before assessing lands adjacent to it as required by
state law. Cites are not required to evaluate inventories throughout the region
because the adopted county plan has limited supply and specified site
dispersal as specified by the regional EOA.
* OAR 660-009-0010: (5) The effort necessary to comply with OAR 660-009-0015
through 660-009-0030 will vary depending upon the size of the jurisdiction, the detail of
previous economic development planning efforts, and the extent of new information on
national, state, regional, county, and local economic trends. A jurisdiction's planning
effort is adequate if it uses the best available or readily collectable information to
respond to the requirements of this division.
Finding: Deschutes County is choosing to implement a REOA that recognizes global
competition factors and economic trends that provide the basis to pursue an unmet land
need. Traditional formulaic approaches to Goal 9 rely on population and employment
projections. However, this methodology does not account for global competition and
market trends associated with large -lot employers. Oregon's land use program as
expressed in OAR 660-009 does not structurally account for the recent demand of
large -lot employers and rapidly growing industries that are building production and
research capabilities to establish global scale. As documented in the REOA, additional
demand comes from industries looking for regional production or as a result of specific
logistical concerns.67 Deschutes County complies with OAR 660-009-0010(5) by
adopting a 2011 REOA into its comprehensive plan. As noted by Business Oregon:
The completion of this study and the implementation of its findings by the
communities of Central Oregon should prove to be a major step forward in the
provision of large -lot sites for potential employers, as well as family -wage jobs to
its citizens. Our recommendation for adoption is based on the following:
1. The methodology of the Regional Economic Opportunity Analysis (REOA) is
correct in its targeted approach to current industry trends, site selection
considerations, and land entitlement issues.
67 Ibid., 4.
PAGE 29 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
2. The REOA is correct in its recognition and analysis of the regional context in
which all high-value industrial recruitments take place.
3. The REOA is correct in the narrowness and the economy of its mission and
findings: the identification of a limited number of high-value locations to serve
the large -lot needs of a region over a short and long term planning horizon.
Methodology: The methodology of the study follows best practices in economic
development with its focus on a specific cross-section of industry and a specific
land need. This process is consistent with Oregon Business Development's Key
Industry strategy, which identifies industries that are considered to be globally
competitive in Oregon. Further, industry identifications are made in a number of
exhibits and summaries that cite recent large -lot placements across the state and
the nation.68
* OAR 660-009-0010: (6) The amendments to this division are effective January 1,
2007. A city or county may voluntarily follow adopted amendments to this division prior
the effective date of the adopted amendments.
Finding: Deschutes County initiated the plan amend in 2011, therefore this division
applies.
* OAR 660-009-0015 - Economic Opportunities Analysis
Cities and counties must review and, as necessary, amend their comprehensive plans
to provide economic opportunities analyses containing the information described in
sections (1) to (4) of this rule. This analysis will compare the demand for land for
industrial and other employment uses to the existing supply of such land.
(1) Review of National, State, Regional, County and Local Trends. economic
opportunities analysis must identify the major categories of industrial or other
employment uses that could reasonably be expected to locate or expand in the planning
area based on information about national, state, regional, county or local trends. This
review of trends is the principal basis for estimating future industrial and other
employment uses as described in section (4) of this rule. A use or category of use could
reasonably be expected to expand or locate in the planning area if the area possesses
the appropriate locational factors for the use or category of use. Cities and counties are
strongly encouraged to analyze trends and establish employment projections in a
geographic area larger than the planning area and to determine the percentage of
employment growth reasonably expected to be captured for the planning area based on
the assessment of community economic development potential pursuant to section (4)
of this rule.
Finding: Deschutes County, by adopting the REOA into its comprehensive plan,
recognizes a trend analysis that shows successful local and regional industrial
se See note 42 above (Michael J. Williams, May 19, 2011), 1.
PAGE 30 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
recruitment in the 21St century must consider global competition factors.69 Noteworthy
trends are noted below:
Communities, regions and states that focus primarily or exclusively on outdated
governance paradigms are ill suited for keeping up with fast paced global
economic and industrial marketplace changes. Industries must be nimble to be
successful in the competitive global marketplace. Manufacturers must be able to
quickly produce new products at expanded, renovated or new production
facilities in "just -in -time" fashion. Often accomplished through on-site expansion
on areas reserved for that purpose, industrial site selectors must choose sites
large enough to build -in future expansion capacity. Government must adapt and
align its regulatory and process requirements to meet market demands if it
wishes to capture the considerable benefits of high value industrial development.
Site selectors shopping the international marketplace of large -lot industrial sites
determine the type of land supply product they will consider. For an individual
vacant industrial site to be competitive, it must be large enough to offer future
expansion on-site. It must be proximate to other competitive sites and governed
by a regulatory structure that is responsive to the needs of industry.
Manufacturing employment opportunities in particular are needed to establish a
diversified and thereby more stable and balanced regional employment outlook.
New manufacturing and other high value employment opportunities require an
attractive supply of vacant industrial sites to be competitive in global industrial
recruitment pursuits. New land supply methods are needed, too.
This large -lot industrial lands supply initiative exceeds the capacity of any single
jurisdiction. It is an industrial recruitment reality that in order to be competitive,
regional clout and appeal, along with a critical mass of diverse attractive sites,
are needed. The 21st century site selection factors in the global marketplace of
industrial recruitment and site development prioritize:
• Expedited site development with certainty and minimal time delay;
• Opportunities to expand and/or diversify manufacturing activity on-site, taking
advantage of existing infrastructure and facilities investment; and
• Availability of a high quality work force and training programs.70
* OAR 660-009-0015: (2) Identification of Required Site Types. The economic
opportunities analysis must identify the number of sites by type reasonably expected to
be needed to accommodate the expected employment growth based on the site
characteristics typical of expected uses. Cities and counties are encouraged to examine
existing firms in the planning area to identify the types of sites that may be needed for
expansion. Industrial or other employment uses with compatible site characteristics may
be grouped together into common site categories.
69 See note 5 above (Johnson -Reid LLC, May 31, 2011, REOA), 7, 13, 18.
70 Ibid., 1, 2, 6.
PAGE 31 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
Finding: A large -lot industrial site is defined to be 50 acres or larger with specific
attributes and amenities that are typical and related to that industry and support its
activities.71 As noted below, the REOA documents the number of sites by type
reasonably expected to be needed to accommodate the expected employment growth
based on the site characteristics typical of expected uses:
The goal of this regional effort is not to generate an acreage calculation of
needed vacant industrial land supply but rather to identify the variety and size
range of vacant industrial sites needed to make the region attractive to site
selectors and competitive in the global marketplace - a qualitative rather than
quantitative outcome. This effort is the first step in providing an adequate supply
of large industrial sites to support stable, family -wage jobs in traded sectors in
the short-term and to build future job creation capacity in the long-term (through
land banking and a renewing large -lot industrial land supply) so that established
employers do not have to move out of the region to be quick, efficient,
competitive and successful.
Sites designated to meet the regional demand for large -lot industrial uses should
be able to meet most of these criteria (identified in Table 1) where practical.
While physical and workforce issues cannot be addressed by actions by an
individual jurisdiction, the remaining locational criteria largely involve
infrastructure investments, which can be actively targeted to enhance the supply
of competitive sites. Additionally, jurisdictions actively engaging property owners
in discussions about land price, lot configuration, and investments necessary to
make sites usable, can provide a context for owners' readiness to sell their
property.
Table 1 — Site Need Characteristics for LLI Uses in Central Oregon
Slope — Industrial development has a very limited capacity to deal with slopes. This is
particularly true in areas such as Central Oregon, in which the geology makes grading costly.
to'aecommodate simitarlevelsdfdevelo
Infrastructure
71 Ibid., 2.
PAGE 32 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
Table 1 — Site Need Characteristics for LLI Uses in Central Oregon
Utilities
o Water
o Sewer
o Natural Gas
o Electricity
o Telecommunications
• Major communications capacity
• Route diversity
• Fiber optics
Location
Special Considerations
rleeessa.
;n u
Economic recruitment benefits from some degree of market choice. Firms
evaluating prospective locations are more likely to consider Central Oregon if
multiple appropriate sites can be seen in a single trip. The region wants to
establish and maintain a "competitive portfolio" of large -lot industrial sites. This
would include an inventory of readily available and appropriate sites consistent
with baseline criteria, allowing the region to clear the initial site selection
screening. To the extent that multiple prospective sites are available in the
region, Central Oregon's competitive position would be enhanced as site
selectors prefer to have multiple options before physically visiting an area such
as Central Oregon. The following matrix of large -lot site locational needs has
been identified.
Table 2 — Recommended Competitive Large Lot Industrial Inventory
50-100 Acres
100-200 Acres
2
2
200+ Acres
# of Sites
Jurisdictions
10
5
5
3
1
1
2
2
A readily available and developable inventory of six large sites in at least three
separate jurisdictions will provide for an adequate supply to prospective
industries or site selectors. While Table 2 presents both a short term and long
term inventory, the short term inventory is what is relevant from an economic
PAGE 33 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
development perspective. 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. Based on the projected level of demand for these
sites, replenishment of the inventory will likely be needed on a regular basis.
What is important from an economic development perspective is maintaining an
inventory of appropriately sized and located lots available to the market in any
given period. From a market perspective, sites need to be readily developable
with infrastructure in place or readily available, controlled by a willing seller and
appropriately priced.?
* OAR 660-009-0015: (3) Inventory of Industrial and Other Employment Lands.
Comprehensive plans for all areas within urban growth boundaries must include an
inventory of vacant and developed lands within the planning area designated for
industrial or other employment use.
(a) For sites inventoried under this section, plans must provide the following information:
(A) The description, including site characteristics, of vacant or developed sites within
each plan or zoning district;
(8) A description of any development constraints or infrastructure needs that affect
the buildable area of sites in the inventory; and
(C) For cities and counties within a Metropolitan Planning Organization, the
inventory must also include the approximate total acreage and percentage of sites
within each plan or zoning district that comprise the short-term supply of land.
(b) When comparing current land supply to the projected demand, cities and counties
may inventory contiguous lots or parcels together that are within a discrete plan or
zoning district.
(c) Cities and counties that adopt objectives or policies providing for prime industrial
land pursuant to OAR 660-009-0020(6) and 660-009-0025(8) must identify and
inventory any vacant or developed prime industrial land according to section 3(a) of this
rule.
Finding: Deschutes County, by exercising its statutory coordination authority, is
choosing to focus on a short-term regional inventory that identifies six, 50 acre or
greater sites, in three different jurisdictions, with two of those sites being between 100 to
200 acres, and one over 200 acres. Oregon's prescriptive land use planning system
requires that Deschutes County and (given its regional emphasis) Central Oregon
perform an inventory of industrial lands. This requirement at this particular point in time
is premature because Deschutes County, through its statutory authority, must first
provide the legal foundation to compel Bend, La Pine, Redmond, and Sisters to address
a short-term specialized employment land need. Deschutes County is specifically
fulfilling its regional coordination responsibilities by formalizing, through policies, a
regional governance and land use planning framework that describe the roles and
responsibilities of a regional entity, such as COIC. Deschutes County is applying its
coordination authority to cities as well, for those willing to fulfill this regional employment
72 Ibid., 6, 41, 46-47.
PAGE 34 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
need, consistent with Oregon's Statewide Planning Program. Deschutes County
nonetheless recognizes the importance of addressing OAR 660-009-0015(3) and the
requirement of an inventory. It is complying with the requirement that specifies city and
counties to inventory industrial and other employment lands by adopting the following
policies:
• Cities are required to comply with state land use program requirements when
changing land designations or amending a UGB, including conducting a local
inventory to determine whether a local deficit exists.
* Cities are directed to not conduct regional inventories where and because the
counties have established plan policies under their statutory coordinating
authority to limit and disperse the number of sites that can be included in the
various UGBs as well as a program to manage the supply.
* To meet the requirements of Division 024 when amending a UGB to include a
site in compliance with the regional plan, cities will be required to provide an
estimated employment projection for the site at full build out within the
planning period by applying the REOA analysis and plan to the particulars of
the site.
* When a city investigates and concludes that a potential qualifying large -lot
industrial site exists or can be assembled inside of its UGB (and the existing
site zoning will be amended with the large -lot overlay zoning assignment),
that city must replace that original [future] buildable land supply or evaluate
and conclude that the previously identified future land supply is no longer
needed.
* Participating cities, when examining candidate sites, shall conduct their
alternative land and public facilities analyses and inventory of employment
lands by first examining if the short-term regional need can be met inside the
implementing city's UGB, before assessing lands adjacent to it as required by
state law. Cites are not required to evaluate inventories throughout the region
because the adopted county plan has limited supply and specified site
dispersal as specified by REOA.
* Participating cities, after conducting alternative lands and public facility
analyses, but prior to any entitlement process, shall receive formal support
from EDCO that candidate site(s) contain necessary site characteristics and
attributes, as defined in the REOA, to attract large -lot industrial recruiters.
* OAR 660-009-0015: (4) Assessment of Community Economic Development Potential.
The economic opportunities analysis must estimate the types and amounts of industrial
and other employment uses likely to occur in the planning area. The estimate must be
based on information generated in response to sections (1) to (3) of this rule and must
consider the planning area's economic advantages and disadvantages. Relevant
economic advantages and disadvantages to be considered may include but are not
limited to:
(a) Location, size and buying power of markets;
PAGE 35 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
(b) Availability of transportation facilities for access and freight mobility;
(c) Public facilities and public services;
(d) Labor market factors;
(e) Access to suppliers and utilities;
(f) Necessary support services;
(g) Limits on development due to federal and state environmental protection laws; and
(h) Educational and technical training programs.
Finding: Led by Economic Development for Central Oregon in participation with local
leaders, the Central Oregon region has gone through the lengthy process of identifying
specific industry sectors for business recruitment, retention, and entrepreneurial
support.73 Several of these industries have had successful results to -date, while others
are relatively young in Central Oregon. The amount, recognized as short-term supply is
described above in an earlier finding. In the summaries below, the REOA draws largely
from Economic Development for Central Oregon's evaluation of industries in Central
Oregon as well as extensive research and evaluation produced as a part of the Oregon
Business Plan.
Renewable Energy Development - Renewable or clean energy development is a
global industry on the rise. In 2008, Global Insight forecasted U.S. employment
growth related to "green industries" would reach 2.5 million over the next ten
years. In Oregon, solar manufacturing has been an early entrant, taking
advantage of Oregon's existing and highly related semiconductor industry and
proximity to large U.S. West Coast markets. Central Oregon currently has a small
but diverse cluster of renewable energy related industries ranging from solar
power and fuel cells to wind power and biomass production.
Aviation/Aerospace- There is an existing concentration relating to Redmond's
airport and Bend's metro area. Specifically, Lancair has been operating in
Redmond since 1992. Oregon's aviation industry includes 200 firms providing
manufacturing, first and second supply chain services, and product distribution.
Oregon's kit plane manufacturers also provide over 70 percent of all of the kit
planes sold within the U.S. each year to global customers.
Software - Oregon is home to more than 1,500 software companies, and is
particularly strong in the areas of: electronic design automation, financial
solutions, open source, educational and training software, embedded software
and healthcare applications. Central Oregon itself is home to over two dozen
established software engineering firms. Software development firms are typically
smaller in scale, where quality of life and telecom infrastructure is important.
However, the Central Oregon region and the State of Oregon face both human
and financial capital challenges to further development of the Software/IT cluster.
Biosciences - Oregon's bioscience industry has over 600 companies and
research institutions. Biosciences include research and development, medical
73 See note 2 above (Central Oregon Comprehensive Economic Development Strategy), 20. Industry sectors cited in
the REOA are also referenced in this report.
PAGE 36 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
devices, medical diagnostics, human and animal therapeutics, pharmaceuticals,
reagents, research services, bio -agriculture, bio -fuels, and medical software
operations. Bioscience is a $2.5 billion traded sector industry in Oregon. While
Oregon is not seen as a bioscience hub nationally, Central Oregon is home to a
segment of Oregon's promising bioscience future, specializing in pharmaceutical
research and development. However, biosciences are highly workforce
dependent and are often related to large-scale, higher education resources,
which are currently absent in the region.
Data Centers - Data centers are an emerging economic development engine in
Oregon bringing significant capital investment to regional communities. The
Central Oregon region offers key critical components in the recruitment of data
center projects, specifically affordable electric power, municipal water and sewer
capacity, robust telecom infrastructure, ability to attract technical talent to operate
data center facilities, and a climate that can significantly lower power usage.
These factors were instrumental in EDCO's recruitment of both Bend
Broadband's Vault project and Facebook's $188 million investment in Prineville.
Recreation Equipment - Oregon is home to some of the world's most recognized
brands in footwear and sports apparel. Locally headquartered firms include Nike,
Columbia Sportswear and the North American headquarters of Adidas.
Additionally, hotbed recreational regions such as Hood River and Central Oregon
have long seen start-up recreational equipment firms flourish into significant
contributors to local economies. Central Oregon specifically is home to diverse
range of mountain, river, and recreational vehicle and equipment manufacturers.
Higher Education - Central Oregon is just beginning the process of establishing
planning efforts in the establishment of a higher education facility in the region.
Local policy market and economic development professionals realize the broader
importance of higher education on workforce quality, culture, and business
development. Higher education facilities are typically campus style development
requiring large affordable sites with good telecom and transportation
infrastructure. Sites need to be proximate to population centers.
Regional Distribution Centers - Central Oregon can play a role in distribution,
with Highway 97 representing an option to the 1-5 Corridor. Option planning is
taking a larger role in logistics and is expected to play a bigger role in diversifying
risk away from a single supply route.
Wood Products - The Wood Products cluster is a long standing economic driver
in Central Oregon. The cluster includes primary and secondary wood products,
machinery manufacturing, paper & pulp manufacturing, wholesaling, and
business management. Where Central Oregon was once a primary wood
products region, secondary wood products manufacturing now accounts for 25%
of all manufacturing employment in the region. While wood products have largely
been a low growth industry over the last decade, the Central Oregon region is
PAGE 37 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
targeting additional value-added firms. Moreover, innovated new-age primary
lumber production models have emerged in recent years of which Central
Oregon would have a distinct competitive advantage.
While it is unlikely that several industries being targeted by communities within
Central Oregon will generate significant demand for large -lot industrial land,
some sectors have a demonstrated track record for creating enormous
exogenous absorption of properly -zoned industrial sites. For example, software,
recreational equipment and aviation/aerospace all have precedent for large
corporate campuses: respectively Microsoft in Redmond, Washington; Thor
Industries in Elkhart, Indiana; Cessna in Wichita, Kansas. Typical companies,
however, require building footprints well under the 40-50 acre threshold we have
defined as a large -lot industrial site. These needs are generally met by the
existing land use process in Oregon. Industries requiring large acreages that hold
promise for the Central Oregon region include:
• Data centers
• Warehouse/distribution centers
• Select high technology/biosciences operations74
* OAR 660-009-0015: (5) Cities and counties are strongly encouraged to assess
community economic development potential through a visioning or some other public
input based process in conjunction with state agencies. Cities and counties are strongly
encouraged to use the assessment of community economic development potential to
form the community economic development objectives pursuant to OAR 660-009-
0020(1) (a).
Finding: Deschutes County chose to form a RAC to help guide the development of the
REOA. Besides representatives of local government, members included Economic
Development for Central Oregon, Department of Land Conservation and Development,
Business Oregon, Department of State Lands, 1,000 Friends of Oregon, COIC, Central
Oregon Association of Realtors and Johnson -Reid LLC. The RAC developed a
community vision, which summarizes what the region's economic development goals
are as they particularly relate to large -lot industrial demand.
To build a strong and thriving regional economy by establishing and actively
maintaining a competitive portfolio of large -lot employment sites and coordinating
public investments, policies and regulations to support regional and state
economic development objectives.75
* OAR 660-009-0020 - Industrial and Other Employment Development Policies
(1) Comprehensive plans subject to this division must include policies stating the
economic development objectives for the planning area. These policies must be based
74 See note 5 above (Johnson -Reid LLC, May 31, 2011, REOA), 28-30, 31-34. The REOA also cites targeted
industries with large land needs in Appendix 8, starting on page 60.
75 Ibid., 7.
PAGE 38 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
on the community economic opportunities analysis prepared pursuant to OAR 660-009-
0015 and must provide the following:
(a) Community Economic Development Objectives. The plan must state the overall
objectives for economic development in the planning area and identify categories or
particular types of industrial and other employment uses desired by the community.
Policy objectives may identify the level of short-term supply of land the planning area
needs. Cities and counties are strongly encouraged to select a competitive short-term
supply of land as a policy objective.
Finding: Deschutes County chooses to identify and implement a program to create a
regional large -lot land supply that enables Central Oregon to be a competitive region for
industrial recruitment. Central Oregon's traditional industrial base remains active in the
local economy, and the region would like to increase its emphasis on industrial
employment to strengthen that base. While many locally based service -sector
businesses are an essential part of a region's business mix and quality of life, they are
not as effective in creating new living wage jobs.76 Deschutes County, by exerting is
statutory coordination authority, wants to leverage its strengths and employ new
economic development tools to create a dynamic and competitive large -lot industrial
land supply portfolio and inventory that appeal to industrial site selectors. As noted in
the REOA, Central Oregon wants to implement a program that assures a regional
industrial land inventory is adequate to support the specific needs of large -lot industrial
users.77
Deschutes County is adopting a REOA in conjunction with several regional industrial
land policies to comply with OAR 660-009-0020(1)(a). These policies clearly recognize
an economic development objective. The last two policies in particular underscore a
competitive short-term supply of land as a policy objective.
The Central Oregon region, comprised of Jefferson, Crook and Deschutes
counties and its respective cities recognizes the market reality that the region
currently serves as an integrated, cohesive economic unit, sharing work force
and commercial amenities, and should be marketed as such to increase its
perceived scale in the market.
The Central Oregon region needs a critical mass of competitive and diverse
vacant, developable large -lot industrial sites in order for site selectors
representing potential industrial recruitment to consider the region, along with
all of the other needed support factors including adequately skilled workforce,
workforce training programs, worker housing, supportive local government,
utility services, transportation, and quality of life.
Developing and maintaining a supply of large readily available industrial sites
is not currently part of regional economic development efforts, therefore the
region's jurisdictions have developed Goal 9 compliance based on projected
76 Ibid., 4.
77 Ibid., 5. The primary economic development objective of this analysis is to ensure that the regional industrial land
inventory is adequate to support the specific needs of large lot industrial users.
PAGE 39 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
growth, and the attraction of a large industrial user that is recognized as an
exogenous impact to these projections.
* A large -lot industrial site is 50 acres or larger with specific site attributes and
amenities.
* The short term supply of 6 sites is a community development objective of
Central Oregon for establishing large -lot industrial uses.
* Short term supply is a readily available and developable inventory of up to 6
sites in at least three separate jurisdictions in order to provide an adequate
supply to prospective industries or site selectors. Two of the 6 sites are to be
100 to 200 acres and one site would be 200+ acres.
* OAR 660-009-0020: (1)(b) Commitment to Provide a Competitive Short -Term Supply.
Cities and counties within a Metropolitan Planning Organization must adopt a policy
stating that a competitive short-term supply of land as a community economic
development objective for the industrial and other employment uses selected through
the economic opportunities analysis pursuant to OAR 660-009-0015.
Finding: As noted in the previous finding, Deschutes County satisfies OAR 660-009-
0020(1)(b) by adopting the following policy:
* The short term supply of 6 sites is a community development objective of
Central Oregon for establishing large -lot industrial uses.
* OAR 660-009-0020: (1)(c) Commitment to Provide Adequate Sites and Facilities. The
plan must include policies committing the city or county to designate an adequate
number of sites of suitable sizes, types and locations. The plan must also include
policies, through public facilities planning and transportation system planning, to provide
necessary public facilities and transportation facilities for the planning area.
Finding: Deschutes County is exercising its statutory coordination authority to compel
cities to address an unmet large -lot industrial land need by adopting a REOA and
several regional industrial land policies to comply with OAR 660-009-0020(1)(c). As
noted above, Deschutes County must first provide the legal foundation to compel Bend,
La Pine, Redmond, and Sisters to address a short-term specialized employment land
need. Deschutes County is specifically fulfilling its regional coordination responsibilities
by formalizing, through policies, a regional governance and land use planning
framework that describe the roles and responsibilities of a regional entity, such as
COIC. Deschutes County is applying its coordination authority to cities as well, for those
willing to fulfill this regional employment need, consistent with Oregon's Statewide
Planning Program.
The timing for committing cities to designate suitable sizes, types and locations of large -
lot employment sites, consistent with public facility and transportation system plans
however, will occur when cities choose to implement this program. As mentioned above,
Deschutes County, by adopting the REOA into its Comprehensive Plan is identifying the
PAGE 40 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
short-term and twenty year need. Through policies, Deschutes County is also
establishing the legal framework for regional governance. Cities in Central Oregon will
be responsible for addressing unmet short-term need for large -lot industrial sites and
conducting buildable lands inventories consistent with the statewide planning program.
OAR 660-009-0020(1)(c) admittedly does not fit neatly with a regional approach to
large -lot industrial siting. Deschutes County nonetheless recognizes the importance of
addressing this administrative rule to assure cities comply with it. The commitment to
establish and maintain a supply of large -lot industrial sites ultimately rests with all the
local governments in the tri -county region. Deschutes County satisfies this
administrative rule by adopting the following policies:
* Deschutes County recognizes the importance for maintaining an appropriate
available large -lot industrial land supply that is readily developable in Central
Oregon.
* The supply of up to 6 sites, located in existing or amended Urban Growth
Boundaries (UGBs), addresses the short-term large -lot industrial regional
land need in Central Oregon and can be incorporated as an additional
component of a city's twenty year land supply.
* Participating cities in Deschutes County will support the existing economic
base by providing adequate land and infrastructure to make city sites
attractive to businesses willing to invest in high job density and industrial
activity.
* Cities in Deschutes County will continue to provide high quality physical
infrastructure to serve the needs of business.
• Deschutes County, fulfilling its coordination duties specified in ORS 195.025,
shall approve and update its comprehensive plan when participating cities
within their jurisdiction legislatively or through a quasi-judicial process
designate regionally significant sites.
* Cities are required to comply with state land use program requirements when
changing land designations or amending a UGB, including conducting a local
inventory to determine whether a local deficit exists.
* To meet the requirements of Division 024 when amending a UGB to include a
site in compliance with the regional plan, cities will be required to provide an
estimated employment projection for the site at full build out within the
planning period by applying the REOA analysis and plan to the particulars of
the site.
* Participating cities, when examining candidate sites, shall conduct their
alternative land and public facilities analyses and inventory of employment
lands by first examining if the short-term regional need can be met inside the
implementing city's UGB, before assessing lands adjacent to it as required by
state law. Cites are not required to evaluate inventories throughout the region
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because the adopted county plan has limited supply and specified site
dispersal as specified by the REOA.
* OAR 660-009-0020: (2) Plans for cities and counties within a Metropolitan Planning
Organization or that adopt policies relating to the short-term supply of land, must include
detailed strategies for preparing the total land supply for development and for replacing
the short-term supply of land as it is developed. These policies must describe dates,
events or both, that trigger local review of the short-term supply of land.
Finding: According to the REOA, large -lot employment sites are an unmet land need,
currently not part of regional economic development efforts. Deschutes County, by
exercising its statutory coordination authority, is choosing to focus on a short-term
inventory that identifies six, 50 acre or greater sites, in three different jurisdictions, with
two of those sites being between 100 to 200 acres, and one over 200 acres. Oregon's
prescriptive land use planning system nonetheless requires that Deschutes County and
(given its regional emphasis) Central Oregon also identify the employment land supply
for a twenty year planning period (total land supply). A total land supply of seventeen
sites represents the twenty year regional land supply of large -lot employment sites.
It is important to acknowledge that a twenty year land supply from an economic
development standpoint is inconsequential. Business Oregon recognizes that Central
Oregon's first priority should be establishing a readily available and developable
inventory of six large sites in at least three separate jurisdictions. Economic
development, viewed outside the context of Oregon's land use planning system would
focus entirely on a short-term supply with mechanisms to insure consistent
replenishment. Viewed from this perspective, the long-term (20 year) supply's value is in
identifying sites that can replace the short term inventory if absorbed or if market
conditions and needs shift. Deschutes County is proposing the following policies,
consistent with OAR 660-009-0020(2) that concentrates this program's efforts on the
short-term supply, including safeguards that ensure replenishment sites are not
exploited:
The unmet short-term need for large -lot industrial sites in Central Oregon is
an additional component of a city's twenty-year land supply.
* Short term supply is a readily available and developable inventory of 6 large
sites in at least three separate jurisdictions provide for an adequate supply to
prospective industries or site selectors. Two of the 6 sites are to be 100 to
200 acres and one site would be 200+ acres.
* At least one of the 6 short term (readily available/developable in 6 months)
sites would consist of a major, centrally located large-scale development
property near the region's geographic and workforce center, and where key
infrastructure is in place and has excess capacity, either the north end of
Bend or the southern end of Redmond, east of Highway 97.
* The supply of up to 6 sites, located in existing or amended Urban Growth
Boundaries (UGBs), addresses the short-term large -lot industrial regional
PAGE 42 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
land need in Central Oregon and can be incorporated as an additional
component of a city's twenty year land supply.
* The supply of up to 17 long-term sites, which includes the 6 short term sites,
represents the currently projected (total) 20 -year regional land supply of this
special industrial land classification.
* Replenishing the short term inventory shall be initiated when large lot
employers demonstrate a commitment to short term sites by completing land
use entitlements and executing site -development permits, including building
permits, subject to the following replenishment mechanism:
a. To maintain a competitive short term ready supply of large -lot employment
sites with the characteristics specified in the REOA, only a total of six
vacant and developable sites shall ever be made available at one time.
* Central Oregon cities and counties shall, within 6 months of the adoption of
this policy, execute Memorandums of Understanding (MOUs) that specify:
a. Cities, after conducting alternative lands and public facility analyses, but
prior to any entitlement process, receive formal support from Economic
Development of Central Oregon that potential sites contain necessary site
characteristics and standards as defined in the REOA to attract large -lot
industrial recruiters.
b. Establishment of a regional authority, responsible for formally supporting
regional large -lot industrial sites after cities identify potential candidates
through alternative lands and public facility analyses, but prior to any
entitlement process.
c. A Regional Advisory Committee (RAC) will be convened (at least)
annually with each city and county providing activity reports relating to the
short term land supply. Facilitating the RAC will be the responsibility of the
counties (ORS 195.025) and will rotate each year, starting alphabetically
with Crook County.
* Deschutes County supports Economic Development of Central Oregon
(EDCO), a non-profit organization facilitating new job creation and capital
investment to monitor and advocate for the region's efforts of maintaining an
inventory of appropriate sized and located industrial lots available to the
market.
* Deschutes County, in collaboration with other Central Oregon's counties and
cities and EDCO, will coordinate and seek assistance from state agencies to
continually support a regional economic development replenishment strategy.
The policies above recognize that projecting the demand for industrial land in this size
range is inherently highly speculative, as it is a thinly traded and highly competitive
sector. With fewer transactions and multiple areas competing for these transactions,
there is an unusually high degree of uncertainty in any forecast. The degree of
PAGE 43 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
uncertainty however, is offset by emphasizing a short term ready supply, with a
mechanism to replace supply in a timely manner when needed.
* OAR 660-009-0020: (3) Plans may include policies to maintain existing categories or
levels of industrial and other employment uses including maintaining downtowns or
central business districts.
(4) Plan policies may emphasize the expansion of and increased productivity from
existing industries and firms as a means to facilitate local economic development.
(5) Cities and counties are strongly encouraged to adopt plan policies that include
brownfield redevelopment strategies for retaining land in industrial use and for qualifying
them as part of the local short-term supply of land.
(6) Cities and counties are strongly encouraged to adopt plan policies pertaining to
prime industrial land pursuant to OAR 660-009-0025(8).
(7) Cities and counties are strongly encouraged to adopt plan policies that include
additional approaches to implement this division including .. .
Finding: These specific administrative rules are not requirements; therefore Deschutes
County is not required to incorporate specific policies to address them.
* OAR 660-009-0025 - Designation of Lands for Industrial and Other Employment
Uses
Cities and counties must adopt measures adequate to implement policies adopted
pursuant to OAR 660-009-0020. Appropriate implementing measures include
amendments to plan and zone map designations, land use regulations, public facility
plans, and transportation system plans.
(1) Identification of Needed Sites. The plan must identify the approximate number,
acreage and site characteristics of sites needed to accommodate industrial and other
employment uses to implement plan policies. Plans do not need to provide a different
type of site for each industrial or other employment use. Compatible uses with similar
site characteristics may be combined into broad site categories. Several broad site
categories will provide for industrial and other employment uses likely to occur in most
planning areas. Cities and counties may also designate mixed-use zones to meet
multiple needs in a given location
Finding: Deschutes County is exercising its statutory authority and choosing to
collaborate with the cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson
and Crook Counties by responding to a specific employment need identified in a REOA
for large -lot industrial sites in Central Oregon. Deschutes County is adopting a REOA
and several regional industrial land policies to comply with OAR 660-009-0025(1). As
described above, the REOA defines the short and long term need to accommodate
large -lot industrial sites. Regulations and comprehensive plan policies that provide an
adequate supply of sites of suitable sizes, types, locations and service levels for
industrial uses will occur when cities conduct their alternative land and public facilities
analyses and inventory of employment lands when examining if the short-term regional
PAGE 44 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
need can be met inside their respective UGBs, consistent with OAR 660 Division 9 and
Division 24. Deschutes County satisfies OAR 660-009-0025(1)by adopting the following
draft policies:
• The Central Oregon Large Lot Industrial Regional Economic Opportunity
Analysis (REOA) dated May 31, 2011 is incorporated and adopted by
reference herein. Findings from the REOA recognize:
o Large -lot industrial lands supply initiative exceeds the capacity of any
single jurisdiction.
o A large -lot industrial site is 50 acres or larger with specific site attributes
and amenities.
o Short term supply is a readily available and developable inventory of 6
large sites in at least three separate jurisdictions provide for an adequate
supply to prospective industries or site selectors. Two of the 6 sites are to
be 100 to 200 acres and one site would be 200+ acres.
o At least one of the 6 short term (readily available/developable in 6 months)
sites would consist of a major, centrally located large-scale development
property near the region's geographic and workforce center, and where
key infrastructure is in place and has excess capacity, either the north end
of Bend or the southern end of Redmond, east of Highway 97.
The supply of up to 6 sites, located in existing or amended Urban Growth
Boundaries (UGBs), addresses the short-term large -lot industrial regional
land need in Central Oregon and can be incorporated as an additional
component of a city's twenty year land supply.
• The short term supply of 6 sites is a community development objective of
Central Oregon for establishing large -lot industrial uses.
• Deschutes County recognizes the importance for maintaining an appropriate
and available large -lot industrial land supply that is readily developable in
Central Oregon.
• Participating cities, when examining candidate sites, shall conduct their
alternative land and public facilities analyses and inventory of employment
lands by first examining if the short-term regional need can be met inside the
implementing city's UGB, before assessing lands adjacent to it as required by
state law. Cites are not required to evaluate inventories throughout the region
because the adopted county plan has limited supply and specified site
dispersal as specified by the regional EOA.
• The supply of up to 17 long-term sites, which includes the 6 short term sites,
represents the currently projected (total) 20 -year regional land supply of this
special industrial land classification.
• When a city investigates and concludes that a potential qualifying large -lot
industrial site exists or can be assembled inside of its UGB (and the existing
site zoning will be amended with the large -lot overlay zoning assignment),
PAGE 45 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
that city must replace that original [future] buildable land supply or evaluate
and conclude that the previously identified future land supply is no longer
needed.
* Replenishing the short term inventory shall be initiated when large lot
employers demonstrate a commitment to short term sites by completing land
use entitlements and executing site -development permits, including building
permits, subject to the following replenishment mechanism:
a. To maintain a competitive short term ready supply of large -lot employment
sites with the characteristics specified in the REOA, only a total of six
vacant and developable sites shall ever be made available at one time.
* OAR 660-009-0025: (2) Total Land Supply. Plans must designate serviceable land
suitable to meet the site needs identified in section (1) of this rule. Except as provided
for in section (5) of this rule, the total acreage of land designated must at least equal the
total projected land needs for each industrial or other employment use category
identified in the plan during the 20 -year planning period.
Finding: According to the REOA, large -lot employment sites are an unmet land need,
currently not part of regional economic development efforts. Deschutes County, by
exercising its statutory coordination authority, is choosing to focus on a short-term
inventory that identifies six, 50 acre or greater sites, in three different jurisdictions, with
two of those sites being between 100 to 200 acres, and one over 200 acres. Oregon's
prescriptive land use planning system nonetheless requires that Deschutes County and
(given its regional emphasis) Central Oregon also identify the employment land supply
for a twenty year planning period (total land supply). A total land supply of seventeen
sites represents the twenty year regional land supply of large -lot employment sites.
It is important to acknowledge that a twenty year land supply from an economic
development standpoint is inconsequential. Business Oregon recognizes that Central
Oregon's first priority should be establishing a readily available and developable
inventory of six large sites in at least three separate jurisdictions. Economic
development, viewed outside the context of Oregon's land use planning system would
focus entirely on a short-term supply with mechanisms to insure consistent
replenishment. Viewed from this perspective, the long-term (20 year) supply's value is in
identifying sites that can replace the short term inventory if absorbed or if market
conditions and needs shift. As noted above, Deschutes County is proposing policies
that concentrate this program's efforts on the short-term supply, including safeguards
that ensure replenishment sites are not exploited. The following policies satisfy OAR
660-009-025(2):
* The supply of up to 17 long-term sites, which includes the 6 short term sites,
represents the (currently projected) total 20 -year land supply of this special
industrial land classification.
* Cities are directed to not conduct regional inventories where and because the
counties have established plan policies under their statutory coordinating
PAGE 46 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
authority to limit and disperse the number of sites that can be included in the
various UGBs as well as a program to manage the supply.
* OAR 660-009-0025: (3) Short -Term Supply of Land. Plans for cities and counties
within a Metropolitan Planning Organization or cities and counties that adopt policies
relating to the short-term supply of land must designate suitable land to respond to
economic development opportunities as they arise. Cities and counties may maintain
the short-term supply of land according to the strategies adopted pursuant to OAR 660-
009-0020(2).
Finding: As described above, the REOA defines the region's short term need to
accommodate large -lot industrial sites. Deschutes County satisfies this oar 660-0090-
0025(3) by adopting the following draft policies:
* The supply of up to 6 sites, located in existing or amended Urban Growth
Boundaries (UGBs), addresses the short-term large -lot industrial regional
land need in Central Oregon and can be incorporated as an additional
component of a city's twenty year land supply.
* Short term supply is a readily available and developable inventory of 6 large
sites in at least three separate jurisdictions provide for an adequate supply to
prospective industries or site selectors. Two of the 6 sites are to be 100 to
200 acres and one site would be 200+ acres.
* At least one of the 6 short term (readily available/developable in 6 months)
sites would consist of a major, centrally located large-scale development
property near the region's geographic and workforce center, and where key
infrastructure is in place and has excess capacity, either the north end of
Bend or the southern end of Redmond, east of Highway 97.
* Replenishing the short term inventory shall be initiated when large lot
employers demonstrate a commitment to short term sites by completing land
use entitlements and executing site -development permits, including building
permits, subject to the following replenishment mechanism:
a. To maintain a competitive short term ready supply of large -lot employment
sites with the characteristics specified in the REOA, only a total of six
vacant and developable sites shall ever be made available at one time.
The notion of replenishment is always to maintain an adequate short-term supply
of sites. It can be triggered when a site is committed to development. Deschutes
County is choosing to define a large -lot employer's commitment to a site when it
completes the land use entitlement process and executes site development
permits (ex. grading), including building permits.
* OAR 660-009-0025: (3)(a) Except as provided for in subsections (b) and (c), cities and
counties subject to this section must provide at least 25 percent of the total land supply
within the urban growth boundary designated for industrial and other employment uses
as short-term supply.
PAGE 47 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
(b) Affected cities and counties that are unable to achieve the target in subsection (a)
above may set an altemative target based on their economic opportunities analysis.
(c) A planning area with 10 percent or more of the total land supply enrolled in Oregon's
industrial site certification program pursuant to ORS 284.565 satisfies the requirements
of this section.
Finding: OAR 660-009-025(3)(a) requires cities and counties to provide at least 25
percent of the total land supply within the UGB designated for industrial and other
employment uses as short-term supply. Deschutes County, by exercising its statutory
coordination authority, is compelling Bend, La Pine, Redmond, and Sisters to address a
short-term specialized employment land need of six industrial sites, 50 acres or larger in
three different jurisdictions. Seventeen sites, which include the 6 short term sites,
represent the currently projected (total) 20 -year regional land supply of this specialized
industrial land classification. The short-term inventory therefore represents 35% of the
total supply. As noted earlier, Deschutes County is specifically fulfilling its regional
coordination responsibilities by formalizing, through policies, a regional governance and
land use planning framework that describe the roles and responsibilities of a regional
entity, such as COIC. Deschutes County is applying its coordination authority to cities
as well, for those willing to fulfill this regional employment need, consistent with
Oregon's Statewide Planning Program.
The policies below demonstrate that participating cities will satisfy the requirement of
accommodating 25% of the total land supply in UGBs when they conduct their
alternative land and public facilities analyses and inventory of employment lands,
consistent with OAR 660 Division 9 and Division 24:
* Participating cities, when examining candidate sites, shall conduct their
alternative land and public facilities analyses and inventory of employment
lands by first examining if the short-term regional need can be met inside the
implementing city's UGB, before assessing lands adjacent to it as required by
state law. Cites are not required to evaluate inventories throughout the region
because the adopted county plan has limited supply and specified site
dispersal as specified by the regional EOA.
* Replenishing the short term inventory shall be initiated when large lot
employers demonstrate a commitment to short term sites by completing land
use entitlements and executing site -development permits, including building
permits, subject to the following replenishment mechanism:
a. To maintain a competitive short term ready supply of large -lot employment
sites with the characteristics specified in the REOA, only a total of six
vacant and developable sites shall ever be made available at one time.
* OAR 660-009-0025: (4) If cities and counties are required to prepare a public facility
plan or transportation system plan by OAR chapter 660, division 011 or division 012, the
city or county must complete subsections (a) to (c) of this section at the time of periodic
PAGE 48 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
review. Requirements of this rule apply only to city and county decisions made at the
time of periodic review.
Finding: Deschutes County started its periodic review in 1988 and completed it on
January 23, 2003. In 2003, the Oregon Legislature amended ORS 197.629(3)
exempting counties from periodic review, excluding portions of its population within the
urban growth boundary (UGB) of a city.
* OAR 660-009-0025: (5) Institutional Uses. Cities and counties are not required to
designate institutional uses on privately owned land when implementing section (2) of
this rule. Cities and counties may designate land in an industrial or other employment
land category to compensate for any institutional land demand that is not designated
under this section.
Finding: This administrative rule does not apply since the REOA identifies opportunities
to establish and maintain large -lot industrial sites in Central Oregon.
* OAR 660-009-0025: (6) Compatibility. Cities and counties are strongly encouraged to
manage encroachment and intrusion of uses incompatible with industrial and other
employment uses. Strategies for managing encroachment and intrusion of incompatible
uses include, but are not limited to, transition areas around uses having negative
impacts on surrounding areas, design criteria, district designation, and limiting non-
essential uses within districts.
Finding: Deschutes County, by exercising its statutory coordination authority, is
compelling Bend, La Pine, Redmond, and Sisters to address a short-term specialized
employment land need of six industrial sites, 50 acres or larger in three different
jurisdictions. Deschutes County complies with this administrative rule by adopting the
following policy:
* Participating cities in Deschutes County shall adopt a large -lot industrial
overlay zone that establishes and maintains the region's large -lot industrial
site inventory and manages usage of such lands.
* OAR 660-009-0025: (7) Availability. Cities and counties may consider land availability
when designating the short-term supply of land.
Finding: The REOA acknowledges the difficult tasks of assembling multiple smaller
parcels into a cohesive "large -lot" product.78 Deschutes County recognizes that the key
to the site selection process is that it is essential for candidate sites to be truly
development -ready instead of simply "buildable." A general lack of development -ready
sites to choose from eliminates a city or region from contention early in the site selection
process. This is why Deschutes County is focusing on the short-term supply of a readily
available and developable inventory of up to 6 sites in at least three separate
jurisdictions in order to provide an adequate supply to prospective industries or site
78 Ibid., 24.
PAGE 49 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
selectors. Two of the 6 sites are to be 100 to 200 acres and one site would be 200+
acres. This is consistent with the REOA's recognition that firms in the site selection
process prefer to have multiple options within a region that meet their criteria. Ideally
this would include multiple ownerships, as well as multiple jurisdictions. This allows for
competitive pricing, a wider range of options, as well as making the area more attractive
for site visitation.'
* OAR 660-009-0025: (8) Uses with Special Siting Characteristics. Cities and counties
that adopt objectives or policies providing for uses with special site needs must adopt
policies and land use regulations providing for those special site needs. Special site
needs include, but are not limited to large acreage sites, special site configurations,
direct access to transportation facilities, prime industrial lands, sensitivity to adjacent
land uses, or coastal shoreland sites designated as suited for water -dependent use
under Goal 17. Policies and land use regulations for these uses must:
(a) Identify sites suitable for the proposed use;
(b) Protect sites suitable for the proposed use by limiting land divisions and permissible
uses and activities that interfere with development of the site for the intended use; and
(c) Where necessary, protect a site for the intended use by including measures that
either prevent or appropriately restrict incompatible uses on adjacent and nearby lands.
Finding: Deschutes County, through its governing body, is exerting its statutory
coordinating authority to address an unmet regional need for large -lot industrial sites.
This authority will assure there is an integrated comprehensive plan between Deschutes
County and its respective cities by compelling Bend, La Pine, Redmond, and Sisters to
address a short-term specialized employment land need of six industrial sites, 50 acres
or larger in three different jurisdictions. Deschutes County is specifically fulfilling its
regional coordination responsibilities by formalizing, through policies, a regional
governance and land use planning framework that describe the roles and
responsibilities of a regional entity, such as COIC. Deschutes County is applying its
coordination authority to cities as well, for those willing to fulfill this regional employment
need, consistent with Oregon's Statewide Planning Program. Deschutes County's
process directs the tri -county region to coordinate as a single entity promoting large -lot
industrial employments sites that best serve the region as a whole to create family wage
jobs, region economic diversification and place Central Oregon on the map for regional,
national and international industrial recruitment.
Deschutes County complies with this administrative rule and its emphasis on special
siting characteristics by adopting the following policies:
* The Central Oregon region, comprised of Jefferson, Crook and Deschutes
counties and its respective cities, recognizes the market reality that the region
currently serves as an integrated, cohesive economic unit, sharing work force
and commercial amenities, and should be marketed as such to increase its
perceived scale in the industrial recruitment marketplace.
79 Ibid.
PAGE 50 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
* The Central Oregon region needs a critical mass of competitive and diverse
vacant, developable industrial sites in order for site selectors representing
potential industrial recruitment to consider the region, along with all of the
other needed support factors including adequately skilled workforce,
workforce training programs, worker housing, supportive local government,
utility services, transportation, and quality of life.
* Developing and maintaining a supply of large readily available industrial sites
is not currently part of regional economic development efforts, therefore the
region's jurisdictions have developed Goal 9 compliance based on projected
growth, and the attraction of a large industrial user that is recognized as an
exogenous impact to these projections.
* The exogenous short-term need for large -lot industrial sites in Central Oregon
is an additional component of a city's twenty-year land supply.
Competing as a cohesive region allows Central Oregon to market a larger
available work force, the size of which is often a key locational criterion for
firms.
The need for large -lot industrial sites is a regional need, with the economic
development benefits widely distributed regardless of the specific firm
location.
Large -lot industrial lands supply initiative exceeds the capacity of any single
jurisdiction.
A large -lot industrial site is 50 acres or larger with specific site attributes and
amenities.
Short term supply is a readily available and developable inventory of up to 6
sites in at least three separate jurisdictions in order to provide an adequate
supply to prospective industries or site selectors. Two of the 6 sites are to be
100 to 200 acres and one site would be 200+ acres.
At least one of the 6 short term (readily available/developable in 6 months)
sites would consist of a major, centrally located large-scale development
property near the region's geographic and workforce center, and where key
infrastructure is in place and has excess capacity, either the north end of
Bend or the southern end of Redmond, east of Highway 97.80
The supply of up to 6 sites, located in existing or amended Urban Growth
Boundaries (UGBs), addresses the short-term large -lot industrial regional
land need in Central Oregon and can be incorporated as an additional
component of a city's twenty year land supply.
The supply of up to 17 long-term sites, which includes the 6 short term sites,
represents the currently projected (total) 20 -year regional land supply of this
special industrial land classification.
80 See note 44 above (Johnson -Reid LLC, May 31, 2011, RE DA), 47.
PAGE 51 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
Replenishing the short term inventory shall be initiated when large lot
employers demonstrate a commitment to short term sites by completing land
use entitlements and executing site -development permits, including building
permits, subject to the following replenishment mechanism:
a. To maintain a competitive short term ready supply of large -lot employment
sites with the characteristics specified in the REOA, only a total of six
vacant and developable sites shall ever be made available at one time.
* Participating cities in Deschutes County (and in the 3 -County REOA region)
shall adopt a large -lot industrial overlay zone that establishes and maintains
the region's large -lot industrial site inventory and manages usage of such
lands.
* OAR 660-009-0030 - Multi -Jurisdiction Coordination
(1) Cities and counties are strongly encouraged to coordinate when implementing OAR
660-009-0015 to 660-009-0025.
(2) Jurisdictions that coordinate under this rule may:
(a) Conduct a single coordinated economic opportunities analysis; and
(b) Designate lands among the coordinating jurisdictions in a mutually agreed
proportion.
Finding: The Land Conservation and Development Commission adopted amendments
to OAR chapter 660, division 9 on December 1, 2005. One of those amendments
enabled cities and counties to conduct a single, regional EOA. This specific
administrative rule allows cities and counties to coordinate EOAs and to designate lands
among the coordinating jurisdictions in a mutually agree proportion.81 Under this new
rule, regional coordination is strongly encouraged, but not required. During rule making,
no method was specified or mandated for REOAs, therefore counties are free to use a
sensible method.62 As described in these findings, Deschutes County is exercising its
coordination authority by collaborating with the cities of Bend, La Pine, Redmond, and
Sisters, responding to a specific employment/land need identified in a REOA for large -
lot industrial sites in Central Oregon. Deschutes County is also coordinating with two
adjoining counties by voluntarily joining together with Crook and Jefferson and their
respective cities as authorized in ORS 190.003 to 190.620, to collaborate on an
unprecedented regional evaluation of the economic opportunities and constraints
associated with users of large industrial parcels in the Central Oregon region. The
REOA provides an extraordinary opportunity as demonstrated by the accompanying
draft policies to establish and maintain a regional supply of large -lot industrial sites.
Deschutes County complies with this subsection by adopting the following policies:
* Deschutes County supports a multi -jurisdictional cooperative effort to pursue
a regional approach to establish a competitive supply of large -lot industrial
81 http://www.oreqon.qov/LCD/docs/economicdevelopmenUg9 rule fact sheet.pdf
82 See note 34 above (Department of Land Conservation and Development October 18, 2011 Letter), 1.
PAGE 52 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
sites particularly designed to address out -of -region industries that may locate
in Central Oregon.
* Short term supply is a readily available and developable inventory of up to 6
sites in at least three separate jurisdictions in order to provide an adequate
supply to prospective industries or site selectors. Two of the 6 sites are to be
100 to 200 acres and one site would be 200+ acres.
* Participating Central Oregon cities and counties shall, within 6 months of their
adoption of this policy, execute Memorandums of Understanding (MOUs) that
specify:
1. Cities, after conducting alternative lands and public facility analyses, but
prior to any entitlement process, receive formal support from Economic
Development of Central Oregon that potential sites contain necessary
site characteristics and standards as defined in the REOA to attract
large -lot industrial recruiters.
2. Establishment of a regional authority, responsible for formally
supporting regional large -lot industrial sites after cities identify potential
candidates through alternative lands and public facility analyses, but
prior to any entitlement process.
3. A Regional Advisory Committee (RAC) will be convened (at least)
annually, with each city and county providing activity reports relating to
short term land supply. Facilitating the RAC will be the responsibility of
the counties (ORS 195.025) and will rotate each year, starting
alphabetically with Crook County.
* Participating cities, after conducting alternative lands and public facility
analyses, but prior to any entitlement process, shall receive formal support
from Economic Development of Central Oregon that candidate site(s) contain
necessary site characteristics and attributes, as defined in the REOA, to
attract large -lot industrial recruiters.
Section (5) - Other Statewide Planning Goals
The parameters for evaluating these specific amendments are based on an adequate
factual base and supportive evidence demonstrating consistency with Statewide
Planning Goals.
Finding: The following findings demonstrate that Ordinance 2011-017 complies with
applicable statewide planning goals and state law.
• Goal 1, Citizen Involvement; see Section 2.
• Goal 2, Land Use Planning, is met because ORS 197.610 allows local
governments to initiate post acknowledgments plan amendments (PAPA). An
Oregon Land Conservation and Development Department 45 -day notice was
PAGE 53 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
initiated on June 23, 2011.83 This FINDINGS document provides the adequate
factual basis and documented analysis for this plan update. Furthermore, OAR 660-
009-0030 (Multi -jurisdiction Coordination), and 1000 Friends of Oregon v. City of
Dundee, 203 Or App 207 (2005) require Deschutes County to locally adopt the
REOA as part of the comprehensive plan in order for local governments in the
county to base land use decisions upon it.
• Goal 3, Agricultural Lands and Goal 4, Forest Lands, is not applicable because
the County is adopting a technical document and several regional coordination and
large -lot industrial land policies into its Comprehensive Plan. No plan designation
changes, zoning map changes, development or land use changes are being
proposed on agricultural or forest lands.
• Goal 5, Natural Resources, Scenic and Historic Areas, and Open Spaces, is not
applicable because the County is adopting a technical document and several
regional coordination and large -lot industrial lands policies. No development or land
use changes are being proposed on or near inventoried Goal 5 resource lands.
• Goal 6, Air, Water and Land Resources Quality, is not applicable because the
County is adopting a technical document and several regional coordination and
large -lot industrial land policies into its Comprehensive Plan. No development or
land use changes are being proposed that impact air, water and land resource
qualities.
• Goal 7, Natural Hazards, is not applicable because the County is adopting a
technical document and several regional coordination and large -lot industrial land
policies into its Comprehensive Plan. No development or land use changes are
being proposed that impact natural hazards.
• Goal 8, Recreational Needs, is not applicable because the County is adopting a
technical document and several regional coordination and large -lot industrial land
policies into its Comprehensive Plan. No development or land use changes are
being proposed on recreational resources.
• Goal 9, Economic Development, is applicable because in coordination with its
regional partners, Deschutes County has prepared a regional evaluation of the
economic opportunities and constraints associated with users of large industrial
parcels in the Central Oregon. This approach recognizes the market reality that
Central Oregon currently serves as an integrated economic unit.
Goal 9 specifies that Comprehensive Plans for urban areas shall:
1. Include an analysis of the community's economic patterns, potentialities,
strengths, and deficiencies as they relate to state and national trends;
83 Deschutes County completed period review on January 23, 2003.
PAGE 54 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
Findings: This requirement has already been addressed. See the findings
addressing ORS 197.712(1) above on page 23.
2. Contain policies concerning the economic development opportunities in the
community
Finding: This requirement has already been addressed. See the findings addressing
ORS 197.712(2)(b) above on page 23.
3. Provide for at least an adequate supply of sites of suitable sizes, types, locations,
and service levels for a variety of industrial and commercial uses consistent with
plan policies;
Finding: This requirement has already been addressed. See the findings addressing
ORS 197.712(2)(c) above on page 24.
4. Limit uses on or near sites zoned for specific industrial and commercial uses to
those which are compatible with proposed uses
Finding: This requirement has already been addressed. See the findings addressing
ORS 197.712(2)(d) above on page 26.
Goal 9 Planning Guidelines specify:
1. A principal determinant in planning for major industrial and commercial
developments should be the comparative advantage of the region within which
the developments would be located. Comparative advantage industries are those
economic activities which represent the most efficient use of resources, relative
to other geographic areas.
Finding: The REOA documents large -lot trends and dynamics, importance of large -
lot supply and market choice, and target industry opportunities in Central Oregon. As
discussed above, Economic Development for Central Oregon in participation with
local leaders, has gone through the lengthy process of identifying specific industry
sectors for business recruitment, retention, and entrepreneurial support.
2. The economic development projections and the comprehensive plan which is
drawn from the projections should take into account the availability of the
necessary natural resources to support the expanded industrial development and
associated populations. The plan should also take into account the social,
environmental, energy, and economic impacts upon the resident population.
Finding: Deschutes County is fulfilling its coordination responsibilities by
collaborating with the Cities of Bend, La Pine, Redmond, and Sisters, as well as
Jefferson and Crook Counties by responding to a specific employment land need
identified in a REOA for large -lot industrial sites in Central Oregon. Participating
PAGE 55 OF 60 - EXHIBIT "C TO ORDINANCE 2011-017
cities will need to address this guideline when they conduct their alternative land and
public facilities analyses and inventory of employment lands when examining if the
short-term regional need can be met inside their respective UGBs. Deschutes
County complies with this guideline that underscores the importance of available
natural resources to support expanded industrial development by adopting the
following policy:
* Participating cities, when examining candidate sites, shall conduct their
alternative land and public facilities analyses and inventory of employment
lands by first examining if the short-term regional need can be met inside the
implementing city's UGB, before assessing lands adjacent to it as required by
state law. Cites are not required to evaluate inventories throughout the region
because the adopted county plan has limited supply and specified site
dispersal as specified by the regional EOA.
3. Plans should designate the type and level of public facilities and services
appropriate to support the degree of economic development being proposed.
Finding: This requirement has already been addressed. See the findings addressing
OAR 660-009-0020(1)(c) above on page 40.
4. Plans should strongly emphasize the expansion of and increased productivity
from existing industries and firms as a means to strengthen local and regional
economic development.
Finding: Deschutes County is choosing targeted basic industries with large -lot
industrial needs to support the region's economic development objectives. While
many locally based service -sector businesses are an essential part of a region's
business mix and quality of life, they are not as effective in creating new living wage
jobs. Since 2002, wage levels in Central Oregon have averaged a 3.2% annual rate
of growth, comparatively better than a 2.8% annual growth rate at the State level.
However, Deschutes County's average 2009 wage level of $35,295 was well below
the statewide average. Lower relative wage rates coupled with housing affordability
concerns can limit the region's ability to attract a high quality workforce to the region.
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 complimentary, not
competitive. 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. Economic Development
for Central Oregon 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.
PAGE 56 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
5. Plans directed toward diversification and improvement of the economy of the
planning area should consider as a major determinant, the carrying capacity of the
air, land and water resources of the planning area. The land conservation and
development actions provided for by such plans should not exceed the carrying
capacity of such resources.
Finding: This is a carrying capacity issue and not a coordination one. The air, land
and water resource carrying capacity of the region will be accounted for, managed
and maintained during the identification and development of regional large -lot
industrial sites. This will be achieved through individual jurisdictions applying their
Comprehensive Plan policies and development code regulations/standards to
evaluate and regulate large -lot development proposals and through application of
development regulations and guidance found in the (required to be adopted) large -
lot industrial overlay zone.
Deschutes County is fulfilling its coordination responsibilities by collaborating with
the cities of Bend, La Pine, Redmond, and Sisters, as well as Jefferson and Crook
Counties by responding to a specific employment need identified in a REOA for
large -lot industrial sites in Central Oregon. Participating cities will need to address
this guideline, which is also cited in Goal 6, when they conduct their alternative land
and public facilities analyses and inventory of employment lands when examining if
the short-term regional need can be met inside their respective UGBs.
• Goal 10, Housing is not applicable because, unlike municipalities, unincorporated
areas are not obligated to fulfill certain housing requirements.
• Goal 11, Public Facilities is not applicable because the County is adopting a
technical document and several regional coordination and large -lot industrial land
policies into its Comprehensive Plan. No development or land use changes are
being proposed that impact public facilities.
• Goal 12, Transportation, is not applicable because the County is adopting a
technical document and several regional coordination and large -lot industrial land
policies into its Comprehensive Plan. No development or land use changes are
being proposed that impact local or state transportation facilities.
• Goal 13, Energy Conservation, is not applicable because the County is adopting a
technical document and several regional coordination and large -lot industrial land
policies into its Comprehensive Plan. No development or land use changes are
being proposed that warrant energy conservation.
• Goal 14, Urbanization, is met because developing and maintaining a supply of
large readily available industrial sites is not currently part of regional economic
development efforts, therefore the region's jurisdictions have developed Goal 9
compliance based on projected growth, and the attraction of a large industrial user
that is recognized as an exogenous impact to these projections. The exogenous
need for large -lot industrial sites in Central Oregon is an additional component of a
PAGE 57 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
city's twenty-year land supply. No expansion of urban areas is proposed with these
amendments. As noted below, one of Deschutes County's draft policies specify the
obligations of participating cities to conduct alternative land and public facilities
analyses and inventories of employment land consistent with OAR Division 9 and
24:
* Cities are required to comply with state land use program requirements when
changing land designations or amending a UGB, including conducting a local
inventory to determine whether a local deficit exists.
* Participating cities, when examining candidate sites, shall conduct their
alternative land and public facilities analyses and inventory of employment
lands by first examining if the short-term regional need can be met inside the
implementing city's UGB, before assessing lands adjacent to it as required by
state law. Cites are not required to evaluate inventories throughout the region
because the adopted county plan has limited supply and specified site
dispersal as specified by the regional EOA.
• Goals 15 through 19 are not applicable to any amendments to the County's
comprehensive plan because the county has none of those types of lands.
Section (6) - Deschutes County Comprehensive Plan
* Urbanization Chapter
Finding: This plan amendment is consistent with the Comprehensive Plan, DCC 23.48,
Urbanization Goals and Policies as shown in Ordinance 2011-017, Exhibit A. This
amendment specifically fulfills the County's fourth urbanization goal, by providing a
factual basis for urbanizing large -lot industrial sites in Central Oregon and fostering
intergovernmental cooperation.
* Economy Chapter
Finding: This plan amendment is consistent with the Comprehensive Plan, DCC 23.52,
Economy Goals and Policies as shown in Ordinance 2011-017, Exhibit B. These
findings demonstrate that there is a deficiency of large -lot industrial sites in Central
Oregon. Providing for this specialized land need will diversify and improve the economy
of the area and enhance industrial segments of the local economy, thereby satisfying
Goals 1 and 2. This effort will increase employment opportunities throughout the region
and help implement plans and programs in a tri -county region to develop industrial
lands consistent with Policies 3.a, 3.b and 3.g.
Section (7) - Deschutes County Comprehensive Plan Update
Deschutes County adopted an updated Comprehensive Plan on August 10, 2011. The
effective date of the updated Plan is November 9, 2011.
PAGE 58 OF 60 - EXHIBIT "C" TO ORDINANCE 2011-017
* Urbanization Chapter
Finding: This plan amendment is consistent with the Comprehensive Plan, Section 4.2,
Urbanization, Urbanization Goals and Policies as shown in Ordinance 2011-017, Exhibit
C. This amendment specifically fulfills the County's first and second urbanization goals,
by providing a factual basis for urbanizing large -lot industrial sites in Central Oregon
and fostering intergovernmental cooperation.
Section (8) - Planning Commission Recommendation
On August 25, 2011 the Planning Commission closed the public hearing and
recommended that the Board of County Commissioners adopt the REOA and large -lot
industrial land policies into Deschutes County's Comprehensive Plan. The Planning
Commission's also directed staff to determine how to incorporate a refinement to page
26 of the REOA. As background, the REOA cites strengths and weaknesses of each
municipality in the tri -county area. These profiles were derived from a June 2010
Central Oregon Industrial Lands Forum. There's a footnote acknowledging this point in
the REOA on page 25.
Stakeholders from La Pine wanted La Pine's strengths and weaknesses to reflect new
information as italicized below. The Board finds that the revised listing is appropriate
and should be incorporated as part of this plan amendment.
LA PINE (DESCHUTES COUNTY)
La Pine is Oregon's newest City, incorporated in December 2006. La Pine has a state
certified shovel ready site and is well-suited for the REOA short term plan. Past
challenges with the water and sewer districts have been resolved by mutual agreement
between the La Pine Water and Sewer Districts and the City of La Pine.
Challenges/Disadvantages
• Transportation challenges; TSP to be
completed by mid -2012
codes adopted and sc
lemertted early 20
• More than adequate water and sewer
capacity for new industry
new flexible land` use'code an
:city leaders
• The county is in control of some industrial
sites
Enterprise Zone, for tax,'relief for new or
expanded industry
• Need large "keystone" employer
PAGE 59 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
Strengths/Advantages Challenges/Disadvantages
• BNSF rail mainline thru industrial park. Near
passenger rail line. "Best Rail Industrial site
in Central Oregon."
• La Pine has a large labor pool of skilled labor
and diverse population with extensive work
experience as indicated by large amount of
commuters traveling north.
Staff updated Exhibit A, DCC 23.48.050. Regional Economic Opportunity Policies as
follows:
3. The Central Oregon Large Lot Industrial Regional Economic Opportunity Analysis
(REOA) dated May 31, 2011 and the City of La Pine Strengths and Weaknesses
outlined on Pages 59 and 60 of Exhibit C to Ordinance 2011-017 are incorporated
and adopted by reference herein.
Attachment:
Regional Economic Opportunity Analysis
PAGE 60 OF 60 — EXHIBIT "C" TO ORDINANCE 2011-017
OREGON
ECONOMIC & COMMUNITY DEVELOPMENT DEPARTMENT
MEMORANDUM
March 11, 2008
TO: Douglas Parker, Asset Manager
Department of State Lands
FROM: Bev Thacker, Industrial Lands S
RE:
Summary
Rail Served & Large Industrial Sites
MAR ,l 1 2008
DEPARTMENT OF STATE LADS
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,
• The site owners and the city agree to meet the requirements for certificationunder
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 platfonn 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 sfwith 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 been certified 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.
OECAD 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
L3 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
Familiar
(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)
Shaffer, 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 mm sf
Manufacture
2006
Private Project
(Technology)
Northem
Oregon I-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 Teclmology, 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.
Regional large site inventory breaks down as follows:
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 trans -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 moved -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
2010-2012 EDCO STRATEGIC
PLAN SUMMARY
OUR VISION
To build a strong and thriving Central Oregon economy.
OUR MISSION
Lead the region's economic and business development through effective
marketing, recruitment, retention/expansion, formation of public/private
partnerships and fostering entrepreneurship.
GOAL #1
Lead marketing and recruitment efforts of traded -sector
companies to generate at least $60 million in new taxable
investments and 500 new jobs by calendar year end 2012.
Objectives
► Serve as the first point of
contact to connect companies with
financial, educational, managerial,
and other resources that will help
meet their relocation and site
selection needs.
I. Overhaul and implement EDCO's
Marketing & Recruitment Action Plan.
► Effectively utilize the expertise,
contacts and experience of board
members and volunteers to en-
hance marketing and recruitment efforts.
I. Develop new local/regional incentive programs to sup-
port recruitment of traded sector companies to the area that
create permanent full-time jobs.
► Successfully market and manage the region's enterprise
zones.
I. Develop new economic development zones where
opportunities exist.
P. Partner with statewide marketing and recruitment efforts
to leverage resources, efforts.
GOAL #2
Diversify the regional economy by building strength
and critical mass in eight broadly defined targeted
industry sectors below.
Objectives
► Facilitate development of new
industry consortia, partnerships or
associations to strengthen the national
and global competitiveness for local
employers within targeted sectors.
P. Statistically track the region's industry
mix over time.
I. Develop a new, searchable database,
accessible on the EDCO website, of all
traded -sector employers and high tech
talent in the region.
I. Identify gaps in education and workforce skills and
traded -sector employer
needs; partner with existing
and new regional education
and training resources to
improve course offerings and
programs.
► Focus recruitment efforts
on smaller, owner -operated
companies.
► Through research, utiliza-
tion of industry focus groups
and other experts, identify the
areas for greatest opportu-
nity in Central Oregon for the
targeted industry sectors.
i[ ECONOMIC DEVELOPMENT
Read more atwww.edcoinfo.com r-6 FOR CENTRAL OREGON
2010-2012 EDCO STRATEGIC PLAN SUMMARY
GOAL #3
Provide substantive assistance to retain and expand existing
traded -sector employers and local entrepreneurs that gener-
ates at (east $40 million in new taxable property investments
and creates 1,000 new jobs by end of calendar year end 2012.
Objectives
► Serve as the first point of contact to connect companies with
financial, educational, managerial, and other resources that will
help them grow.
► Facilitate development of new industry consortia, partnerships
or associations to strengthen the
national and global competitive-
ness within targeted sectors.
(Examples: HiDEC, Tech Alliance,
Bioscience Association).
► Systematically call on all 320+
traded sector employers over the
three year period to identify chal-
lenges and opportunities.
► Develop new local/regional
incentive programs to support
traded sector companies that create permanent full-time jobs.
► Successfully market and manage the region's enterprise zones.
► Develop new economic development zones where opportuni-
ties exist.
► Assist cities and counties to maintain streamlined/fast track
permit programs for job creation projects.
P. Develop and successfully manage initiatives to help early stage
companies and new ventures with access to experts, business
planning, investors, and other capital (i.e. Venture Catalyst, Bend
Venture Conference, PubTalk).
GOAL #4
Champion strategic projects that improve Central Oregon's
business climate and competitiveness.
Objectives
► Serve as a catalyst to
facilitate transportation
improvements including
commercial air service,
increased capacity for
the intra -region highway
system, rail freight
service, and general aviation airports.
► Continue to assist and be a "watchdog" for communities to
maintain a healthy supply of industrially -zoned land with a mix of
large and small sites and buildings.
► Influence legislation (federal, state and local) that improves the
region's business climate and preparedness for future growth.
► Assist communities with
necessary infrastructure
improvements (i.e. water,
sewer, road capacity, and
other utilities) needed to
accommodate companies
within industry targets.
► Improve higher educa-
tion and training opportunities available in the tri -county area.
GOAL #5
Be the "first and one-stop" resource for economic, demographic,
and other statistical data used by companies, site selectors,
commercial real estate professionals, municipalities and other
organizations to make strategic decisions.
Objectives
► Be the "switchboard" for
opportunity in effectively
connecting companies and
other constituents with
information, contacts and
resources.
► Continually improve
EDCO's publications, electronic newsletter, and website.
► Partner to produce events with high quality speakers and
content relevant to business and public
leaders.
► Deliver at least 20 presentations
annually about the regional economy,
industry and demographic trends, and
the vital role EDCO plays.
► Continually communicate, educate,
and build relationships with public and
private leaders, members, agencies,
and other organizations.
PhotoscourresyofLoren Irving, Bryan Iverson, SunriverResort Redmond Expo Center,
and Central Oregon Visitors Association.
EDCO's Strategic Plan is a long-term document providing
vision for the next three years. Each year, or more frequently
if necessary, we update our annual Operational Plan that out-
lines specific actions to implement the Strategic Plan. Please
visit www. edcoinfo.com for updates.
109 NW Greenwood Ave., Suite 102 1 Bend, OR 97701
541-388-3236 1 Fax 541-388-6705
www.edcoinfo.com
L ECONOMIC DEVELOPMENT
-�,�,
-_. FOR CENTRAL OREGON
January2070
2007
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 9
Weaknesses of the Central Oregon Region 10
c. Opportunities and Threats for the Central Oregon Region 10
Opportunities 11
Threats 11
d. External Trends and Forces that Affect the Regional Economy 11
e. Regional Advantages and Disadvantages 12
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 PIan19
7. Rural Action Pian 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 285B.230(3) and ORS 285A.020(3):
• Promote favorable investment climate to strengthen businesses, create jobs and raise real wages;
• Improve the national and global competitiveness of Oregon companies;
• Assist Oregon communities in building capacity to retain, expand and attract businesses;
• Promote the structures and processes of public and private organizations to effectively create, adapt, foster
and sustain economic development in the state, emphasizing rural and distressed areas;
• Ensure that economic strategies will reinforce Oregon's long-term prosperity and livability; and
• Coordinate economic development efforts and efforts to support a locally skilled workforce in order to
compete in the global economy.
The Comprehensive Economic Development Strategy process resulted in the development of a vision for the
region, and identification of a series of long term priority goals to sustain and improve the region's economy.
Vision: The businesses, governments, community organizations, and people of Central Oregon have
created a strong regional economy that is diversified, resilient, innovative, sustainable, and that supports a
rising tide of prosperity which benefits citizens of all income levels throughout the region.
GOAL I:
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 long-term priority goals are as follows:
1. Family wage job creation in Crook, Deschutes and Jefferson Counties;
2. Job Retention in Crook, Deschutes and Jefferson Counties;
3. Maximizing local, state and federal funds leveraged for job creation and retention projects;
4. Promoting structures and processes of public and private organizations to effectively create, adapt, foster
and sustain economic development in Central Oregon;
5. Ensuring that the economic strategies reinforce Central Oregon's long-term prosperity and livability;
6. Coordinating economic development efforts to support a locally skilled workforce in order to compete in the
global economy.
Through the CEDS planning process, past regional Needs and Issues processes, the 2007 Infrastructure Needs
Inventory, and through other methods of economic analysis, several major projects, programs and activities have
been identified for focus over the next six years:
• Support of industry clusters, including secondary wood products, transportation
equipment/aerospace/aviation, manufacturing, renewable energy, tourism.
• Support emerging clusters including natural resources and prison/corrections (Jefferson County).
• Infrastructure development and improvement, specifically as related to job creating properties (specific
priority projects to be identified through the Infrastructure Needs Inventory).
• Essential community facility development and improvement (specific priority projects to be identified
through the Infrastructure Needs Inventory).
• Transportation issues, including state highway modernization needs, traffic flow on state highway corridors,
and funding for local road network, state highways. This has impacted the efficient mobility of goods,
services and the workforce within and between Central Oregon communities, and to and from the region.
• Rail issues, including supporting the expansion of the Prineville Rail Depot to provide rail support to
industrial land.
• Support formation and stabilization of the City of La Pine — the state's newest incorporated city
• Continue to support targeted training for the regions clusters of Secondary Woods products, Aerospace
Production and Parts, and targeted sectors including Appeal and Sporting Goods, High Technology
including Information Technology, Renewable Energy, Light Industrial and Manufacturing, and Research
and Development. Assist in the retention, expansion, and recruitment for these industries.
• ADA accessibility issues for community facilities.
• Access to higher education in areas outside of Bend.
• Address workforce supply; shortage of qualified workers.
• Address housing affordability trends.
• Need for regional public transit.
• Challenges surrounding endangered species reintroduction.
The Strategy focuses specific attention on rural areas of the region, which are defined as Crook and Jefferson
counties in their entirety, and Deschutes County outside of the urban growth boundary of Bend. The Central
Oregon Community Investment Board will ensure rural communities are notified of the availability of Regional
Investment Funding, and will monitor project awards to ensure that rural communities are adequately served by this
program. The strategy will support projects and activities targeted specifically to rural communities, including:
Central Oregon Comprehensive Economic Development Strategy Page 4
Regional Investment Strategy
• Business development projects that lead to job creation and retention. While rural job creation project
typically result in less net job gain than in urban areas, the projects are extremely valuable to rural
distressed communities. Specific effort will be made to invest in rural community job creation projects.
• Infrastructure development, community facility development. Through the infrastructure needs inventory,
priority rural projects will be identified and supported. While population totals are lower in rural areas and
resources are limited, infrastructure and facility costs can be equal to costs in urban areas. Additional
support of these communities is needed.
• Technical support and assistance. Rural communities often lack the capacity to identify and secure funding
for critical projects. COCIB, COIC and EDCO provide support and assistance to rural and distressed
communities.
• Specific focus on economic clusters critical to rural communities, including secondary wood products,
travel/tourism, renewable energy, corrections/prison industry, agriculture, natural resources, and
manufacturing.
• Marketing of low-cost, available industrial and job creating properties.
To evaluate performance toward implementing this strategy, the Central Oregon Community Investment Board will
monitor jobs created/retained, other funding sources leveraged, wages of jobs created, and number of community
infrastructure/facility projects completed. This information will be reported every six months to OECDD.
2. Strategy Purpose and Planning Process
This community and economic development strategy provides a framework for long-term economic development
planning efforts in the Central Oregon region, which is made up of Crook, Deschutes and Jefferson Counties,
Oregon. The information and strategy outlined in this document combines and integrates the:
• Comprehensive Economic Development Strategy (CEDS) of the Central Oregon Intergovernmental
Council (COIC), required by the U.S. Department of Commerce Economic Development Administration; and
the
• Regional Investment Strategy required of the Central Oregon Community Investment Board by the Oregon
Economic and Community Development Department
Economic Development District
COIC serves as the Economic Development District representing Crook, Deschutes and Jefferson counties as
designated by the Economic Development Administration (EDA). One function of the Economic Development
District is developing, maintaining and updating the Comprehensive and Economic Development Strategy (CEDS).
The CEDS is the result of a local planning effort, and serves as a guide for regional economic growth. The CEDS is
a pre -requisite for EDA funding for all public works, economic adjustment, and planning grant projects within Central
Oregon. The CEDS clarifies economic development organizational roles, and how economic development
organizations work together in Central Oregon; identifies priorities and projects that are consistent with the economic
development strategies, which leads potentially to funding; and identifies regional economic development strategies
on which communities within the region can collaborate to bring about sustainable economic prosperity.
Central Oregon Intergovernmental Council (COIC) is a Council of Governments organized under ORS 190 by the
three counties and seven cities of Central Oregon. COIC is governed by a 15 -member board made up of elected
officials appointed by each of the member 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 long-term.
The core functions of COIC's Economic Development services are.
• to explore and document regional economic development planning and inter jurisdictional collaboration
opportunities;
• to provide finance and industry development support to Central Oregon businesses and entrepreneurs;
• to assist local jurisdictions in developing the information, infrastructure, public improvements and other
necessary conditions that ready communities to accommodate the startup, retention, expansion, and
recruitment of business; and
• to serve those communities that do not have professional economic development expertise or capacity.
Central Oregon Community Investment Board
COIC serves as administrative and fiscal staff to the Central Oregon Community Investment Board. The Central
Oregon Community Investment Board (COCIB) was created in 1988 through an agreement between the counties of
Crook, Deschutes and Jefferson. The Board's purpose is to develop a regional investment strategy, and to award
Regional Investment Fund dollars to support community and economic development projects throughout the region.
The Central Oregon Community Investment Board members led development of the 2007 Regional Investment
Strategy, which guides specific Regional Investment Fund allocations to projects addressing the long-term and
short-term economic development priorities of the region.
Crook, Deschutes and Jefferson Counties entered into an Intergovernmental Agreement Central Oregon
Intergovernmental Council (COIC) for administrative and fiscal management of the Regional Investment and Rural
Investment Program.
COCIB Organizational Structure and Board Membership
Crook, Deschutes and Jefferson Counties have entered into an Intergovernmental Agreement (IGA) establishing
the Central Oregon Community Investment Board to oversee the State's Regional Investment Program. The
responsibilities of the Board, its membership, and operational guidelines are specified in the IGA and the COCIB
Bylaws.
The Board consists of 17 members with each county appointing five members plus alternates. These members
represent the broad community and economic development interests of the region, and include representatives
from cities, counties, and significant representation from the private economic sector and rural interests.
JE -24-
Crook County
,t- Sd)1,4.FOA2EEY_F�-,i{.`�,
Deschutes County
Jefferson County
Scott Cooper (CHAIR)
Crook County Judge
David lnbody (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.
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 2858.230-.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 -tens 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 2856.239, the Central Oregon Community Investment Board has designed an investment
strategy to focus on the performance measures of "long-term and short-term job creation and retention
activities," "leveraging long-term investments," and "maximizing moneys leveraged with short-term investments."
3. Needs Examination and Resource Analysis
The Central Oregon Comprehensive Economic Development Strategy Committee participated in a regional
analysis exercise in 2006. The process included identification of regional economic strengths, weaknesses,
opportunities, and threats. The committee also identified `exterior" trends that affect the regional economy. The
Central Oregon Comprehensive Economic Development Strategy Page 7
Regional Investment Strategy
0'`f.".P, .a mill kaE�ai i=s.n.e.t.
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 2858.230-.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 -tens 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 2856.239, the Central Oregon Community Investment Board has designed an investment
strategy to focus on the performance measures of "long-term and short-term job creation and retention
activities," "leveraging long-term investments," and "maximizing moneys leveraged with short-term investments."
3. Needs Examination and Resource Analysis
The Central Oregon Comprehensive Economic Development Strategy Committee participated in a regional
analysis exercise in 2006. The process included identification of regional economic strengths, weaknesses,
opportunities, and threats. The committee also identified `exterior" trends that affect the regional economy. The
Central Oregon Comprehensive Economic Development Strategy Page 7
Regional Investment Strategy
committee then identified economic development organizations within the region, and summarized relevant regional
plans that should be coordinated with the regional economic goals and strategies that result from this process.
a. Data Analysis — Regional Trends
COIC conducted a detailed data analysis to develop a clear understanding of the regional economic situation.
Appendix A includes data summary tables and narrative analysis. Following is a general overview of key
demographic trends that informed the CEDS Committee in their long-range goal and priority development process.
Primary Industries in Central Oregon
Agriculture
Demographics
Rapid population growth throughout the region (Table 1.1)
Distribution and Warehousing
Projected continued rapid population growth (Tables 1.3, 1.4)
Education and Health Services
Relative increases in Hispanic population (Table 1.5)
Leisure and Hospitality
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)
Computer and Electronic Manufacturing
Decreasing unemployment rates, lower than state average (Table 2.3)
Recreation and Transportation Equipment Manufacturing
Highest proportional job growth in the state
Transportation, Warehousing and Utilities
Projected relative decreases in construction trades, wood products manufacturing employment
Education and Health Services
Highest projected increases in govemment, hospitality & leisure employment
Professional and Business Services
Rapidly increasing real estate valuations (Table 2.12)
Workforce Concerns
Poverty rates above state average in Crook, Jefferson counties (Table 3.1)
Wood Product Manufacturing
Rapidly increasing home prices (Table 3.2)
Agriculture
Gap in the supply of housing affordable to the workforce (Table 3.6)
Education and Health Services
Low county ranking for educational attainment - Crook and Jefferson counties (Table 3.17)
Manufacturing (including wood products manufacturing)
High percentage of inter -city commuting to places of employment (Table 3.21)
Recreational Equipment Manufacturing
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)
Primary Industries in Central Oregon
Source: Economic Development for Central Oregon
Central Oregon Comprehensive Economic Development Strategy
Regional Investment Strategy
Page 8
Agriculture
Crook
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
Wood Product Manufacturing
Jefferson
Agriculture
Education and Health Services
Manufacturing (including wood products manufacturing)
Recreational Equipment Manufacturing
Government (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 7u' 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 government practices (addressing development, schools, parks, etc).
Tribal relations — improved communications between local governments and the
Confederated Tribes of Warm Springs.
Coordination between organizations and governments.
Public-private partnerships — a willingness to develop partnerships between government and
business.
d. Local Businesses,
Capital, and Support
Diverse economy — particularly in Deschutes County, with eight sizable economic clusters.
A business community that is willing to take risks.
Existing employers — a strong business base that is supportive of communities and socially
responsible, many locally owned and operated. A core of employers that provide good 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 clean 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 large 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 some parts 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 (1 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 learning opportunities
Lack of vocational training opportunities
State trends - such as public education financing structure challenges. The group
recognized the impact of statewide trends on the local economy.
c. Opportunities and Threats for the Central Oregon Region
A CEDS Committee facilitated discussion on the Opportunities and Threats facing the region on February 16, 2006
produced the following lists.
Central Oregon Comprehensive Economic Development Strategy
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 Leaming
Smart Growth Planning (Infrastructure, Services, Schools, Crime, Open Space Protection ...)
Well Planned Growth can Provide Many Benefits
Expand Philanthropy
Workforce Investment — Linkages to Education Service Delivery
Increasing Cultural Diversity
Expansion of Existing Clusters
Tap into Retirees (Baby Boomers as Workers, Other Ways for Retirees to Contribute ...)
Develop Alternative/Public Transportation
Threats
Parochialism
Threatened and Endangered Species Regulation
Insufficient Education Funding
Insufficient Transportation Funding
In general, Insufficient Public Funding
Aging Population Care, Healthcare and Transportation Needs
Threats to Natural Resource Base and Quality of Life Amenities from Poorly Planned Growth
Pattern of Development Driven Solely by Market Forces
Not Enough Leadership
Negative Perception of Government
Lack of Opportunity for Non-English Speakers Due to Lack of Services
Strains Upon the Workforce (costs of housing, childcare, education, etc)
Disproportionate Growth in Low Wage Industries
Limited Addiction Services
De -stabilization of the Family Unit
Land Cost and Availability
Limited Planning for Growth Results in Problems: Transportation, Quality of Life Degraded
Declining Levels of Civic Disengagement
Region of Haves and Have Nots
d. External Trends and Forces that Affect the Regional Economy
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 comerstone of developing
and implementing the regional economic development strategy.
Central Oregon Intergovernmental Council (COIC): COIC provides workforce and economic development services
to individual businesses and job seekers. Workforce development services include: worker skills training, job
search skills, recruiting and screening of job applicants, and customized trainings.
Central Oregon Comprehensive Economic Development Strategy Page 12
Regional Investment Strategy
Central Oregon Community Investment Board (COCIB): COCIB is a regional economic development board that
receives state lottery dollars and allocates fund to community and economic development projects in Central
Oregon.
Economic Development for Central Oregon (EDCO): EDCO is a private, non-profit organization that attracts new,
permanent primary jobs and capital investment to Central Oregon through marketing and recruitment, and also
assists and supports the growth of existing businesses.
COCC Business Development Center: The COCC Business Development Center provides advice and information
to assist businesses, with a focus on assisting the expansion of existing firms in the Central Oregon area. Services
include:
• Business plan and loan proposal development;
• Market planning and marketing;
• Reviewing financial strategies for your business;
• Adopting healthy, profit -oriented business operations; and
• Evaluating the business feasibility and profitability.
Chambers of Commerce: Seven chambers of commerce are located throughout Central Oregon, providing
business support and visitor services.
Redmond Economic Development (RED): RED is a partnership between private business and the public sector to
encourage economic development in the City of Redmond. The organization's Mission is to increase the quality and
number of jobs as well as capital investment within the community.
Prineville/Crook County Economic Development: Prineville/Crook County Economic Development assists existing
businesses with expansion or retention issues, works on behalf of Prineville and Crook County on new business
and industry recruitment projects, and on other strategic community-based projects with significant impacts to the
local economy. The Prineville/Crook County Economic Development program is a partnership between EDCO, the
Prineville/Crook County Chamber of Commerce, Crook County, and the City of Prineville, and local businesses.
Central Oregon Workforce Response Team (WRT): The WRT receives and allocates Employer Workforce Training
Funds, which are private sector grant dollars that support the retention and growth of living wage jobs, a skilled
workforce and competitive businesses in Crook, Deschutes and Jefferson Counties. The emphasis of the funds is
to upgrade skills of the private sector workforce in order to increase productivity, keep Central Oregon businesses
viable and competitive, and to offer new skills and opportunities to Central Oregon workers.
Opportunity Knocks (OK): OK is an entrepreneurially-managed, volunteer -driven small business assistance
organization whose mission is to train, educate and provide problem solving opportunities to small business
owners. Services include peer-to-peer learning in either a Board of Advisors setting or in a seminar format.
Economic Revitalization Team (state agencies): The ERT was established to focus state agencies on working
together at the local level to increase economic opportunity and help local governments and business and property
owners bring industrial sites to "shovel ready" status. The ERT emphasizes multi -agency coordination on projects
of local and statewide significance.
Workforce Investment Board: The Central Oregon Workforce Investment Board is a public/private partnership with
a mission is to serve employers and workers by leading and coordinating regional workforce services, which
include recruitment, personnel, financial & business services as well as training & education. COWIB
accomplishes its goals through the oversight of a one-stop service center - WorkSource Redmond -- and other
service sites in Bend, Madras, Prineville, and La Pine.
Central Oregon Jurisdictions:
• Counties: Crook, Deschutes, Jefferson
• Cities: Bend, Culver, La Pine, Madras, Metolius, Prineville, Redmond, Sisters
• Tribe: Confederated Tribes of the Warm Springs
4. Priority Goals and Objectives — Long Term
Through the development of the Central Oregon Comprehensive Economic Development Strategy, a set of long-
term priorities were identified for the development of the regional economy.
a. Vision Statement
The businesses, 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.
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Ob'ectives:
t.
a.
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-
Build the infrastructure to su..ort and •row strat-•ic indust clusters
g.f.,.aauuskyi t•iufm'L;iK1IC-I- '- I-• ••, • . • - - &•-•-•!LlLatl!!JL'!a
• 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 • 'ort 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 sanies 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 • Io ment
d.
Support retention traded
of existing -sector companies across all industries that offer family -wage
em.lo ment
e.
Develop regional economic development planning and programs that recognize differentiation among the
reon's communities
Central Oregon Comprehensive Economic Development Strategy
Regional Investment Strategy
Page 14
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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.
q.
q.
Sustain the region's status as Entrepreneurial Mecca for the northwest (resources, expertise)
r.
h.
Implement and expand business administration BA and/or MBA with emphasis in entrepreneurialism
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 locall-•roducts •roducts and services for local consumers
I. Protect workin • landsca•es to •rotect Central Ore•on food and fiber resources
. D• -I
?Sit
irx�mc.
I I•.el
I
n. Develo. a diverse set of affordable local .ower 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:
(1.0f0 tF
Objectives:
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o. Improve regional equity in access to education - expand local 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
.S.:FiE .if � tkl iC 7cuF f/i 3-r 4' P 7-r°I . °a'i }, 1ffR A •C�ici l ��l (Lilt 7:1,‘,
Expand access to and affordability of quality childcare options
p.
Improve the regional workforce by leveraging financial support and improving linkages between private
business, workforce development agencies and education institutions
Improve skills and workforce opportunities for non-English speaking residents — e.g. expand availability of
ESL, provide Spanish language training to employers
q.
Improve and expand workforce training opportunities for job seekers and incumbent workers (entrance/pre-
employment): upgrading, business efficiency, retraining, alternative career training
Expand access to affordable health care services in all communities
r.
Strengthen integration and efficiency of the K-20/CC/University/Workforce Training continuum
Objectives:
s.
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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
k)ff I_)li
Objectives: v. Improve communication and coordination between economic development and housing organizations (e.g.
the need for new housing units for the workforce of new or expanding businesses)
w. Develop local plans that define regulation, zoning and/or incentives to produce affordable housing; develop
Central Oregon Comprehensive Economic Development Strategy
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.
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
Objectives:
cc.
public-private partnerships to ensure the long-term supply of affordable housing for the workforce in all
communities
Develop programs to increase the economic viability of farms and working forests to counteract the trend
toward urbanization of these lands
x.
Develop opportunities for incentive -based employer -assisted housing programs
Promote urban development patterns that reduce sprawl and facilitate efficient transportation
y.
Preserve existing affordable housing stock
Maximize working landscape retention through rural land use policies
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.
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
Objectives:
cc.
lJIFI/�tvl.fS�[�[eiff
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
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)
Objectives:
jj. 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
4i
Objectives:
it
mm. Illustrate how a quality envi onment 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 intergovernmental communication, collaboration, and planning in developing and maintaining
infrastructure. Strategy 4 goals and objectives support the construction, expansion and rehabilitation of essential
public and private infrastructure and facilities necessary to create and retain private sector jobs and investments,
provide access to markets, attract private sector capital, promote regional competitiveness, and protect regional
quality of life.
ict
Objectives:
`iti
nn. Develop an integrated long-range transportation plan for the region, which coordinates and integrates local
•tannin• for all trans•ortation modes rail, air, roads, transit, bic cle/•edestrian
P.•. -f•/ u
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Central Oregon Comprehensive Economic Development Strategy
Regional Investment Strategy
Page 16
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rr.
workforce
Objectives:
pp.
Develop and/or improve intermodal facilities for the efficient movement of goods and services
Develop an adequate supply of affordable industrial land in Central Oregon communities
qq.
Secure funding for backlog of transportation project needs, as per COACT project needs list
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Develop an adequate supply of affordable commercial land in Central Oregon communities
Objectives:
uu.
ss.
Develop an adequate supply of affordable industrial land in Central Oregon communities
vv.
tt.
Develop an adequate supply of affordable residential land in Central Oregon communities
•J L,..n.'e 1 2-._
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Objectives:
uu.
Identify infrastructure deficiencies and capacity needs and develop financing and implementation strategies
for infrastructure construction a community and a regional level
ccc.
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
integration of planning across issue areas
yy.
Develop a regional growth strategy integrating planning for economic development, transportation, land
use, workforce, housing, and natural resources
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
development.
(TOM.:e;f�/l)�z
Objectives:
•fj_11i10.1310 s2:(k, i(I )tJ.[,:Si[ �.j...
aaa. Develop strategies to tap into philanthropy and retirees;
bbb.
Develop local capacity to better access state and federal grant opportunities. Direct resources to help
businesses. Use internet to effectively communicate availability of economic development resources.
ccc.
Encourage and promote innovative, bold approaches by local 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 develotment 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 doin•, 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 2856.230(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:
14.4
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
Crook County
0.85
Jefferson County
0.82
Economic Status
Distressed
Distressed
The Central Oregon Community Investment Board will support projects and activities targeted specifically to rural
communities, including:
• Business development projects that lead to job creation and retention. COCIB recognizes that while rural
job creation project typically result in less net job gain than in urban areas, the projects are extremely
valuable to rural distressed communities. Specific effort will be made to invest in rural community job
creation projects.
• Infrastructure development, community facility development. Through the infrastructure needs inventory,
priority rural projects will be identified and supported. COCIB recognizes that while populations are lower
in rural areas and resources are limited, infrastructure and facility costs can be equal to costs in urban
areas. Additional support of these communities is needed. Specific projects will be identified through
infrastructure inventory.
• Technical support and assistance. Rural communities often lack the capacity to identify and secure funding
for critical projects. COCIB, COIC and EDCO provide support and assistance to rural and distressed
communities.
• Specific focus on economic clusters critical to rural communities, including secondary wood products,
travel/tourism, renewable energy, corrections/prison industry, agriculture, natural resources, and
manufacturing.
• Marketing of low-cost, available industrial and job creating properties.
COIC will outreach to rural communities to identify appropriate Immediate Opportunity Fund projects. Outreach will
include the cities of Culver, La Pine, Madras, Metolius, Prineville, Redmond and Sisters; Crook, Deschutes and
Jefferson counties; and the Confederated Tribes of Warm Springs. Upon the availability of Regional Investment
Funding, each of the cities will receive information and application materials.
Economic Development for Central Oregon will conduct outreach to rural communities to identify appropriate
Business Development Opportunity Fund recipients. Outreach by EDCO will include Chambers of Commerce,
Central Oregon Intergovernmental Council, Oregon Economic and Community Development Department, Central
Oregon Visitors Association, Prineville/Crook County Economic Development, Redmond Economic Development,
and other entities involved in regional economic development to identify businesses in rural areas that may be
candidates for Regional Investment Funds.
COCIB will earmark a minimum of 50% of Regional Investment funds toward projects benefiting rural areas.
Assuming that the Central Oregon Community Investment Board receives an allocation of Regional Investment
Funds for the 2007-2009 that is the same as the past biennium, then the minimum amount of the rural set-aside will
equal $233,950.
8. Barriers to Implementation
A detailed summary of regional weaknesses and threats is included in Strategy Section 4. This summary includes
many broad regional challenges, such as affordability of land, energy costs, workforce availability, distance from
markets, and other factors. Beyond these issues, several regional challenges have become barriers to
implementation of the Central Oregon Community Investment Strategy:
1) Decreasing state and local government budgets resulting in a lack of public funding for high priority economic
development projects.
2) Increasing stresses upon the region's infrastructure and housing costs as a result of rapid population growth.
Central Oregon Comprehensive Economic Development Strategy Page 21
Regional Investment Strategy
3) Decreasing (and potentially eliminated) Regional Investment Program grant resources. The de -funding of this
program would effectively eliminate the Board's ability to leverage resources to address regional priorities.
The Community Investment Board's means to overcome these barriers include:
• funding projects that support the Community Investment Strategy long-term and short-term
priorities;
• funding projects that leverage private and public sector investment;
• funding high priority projects as identified by cities, counties, and the tribe; and
• funding projects that lead to job creation or retention as a means of building the employment base
of the region
9. Plan for Involvement of Disadvantaged and Minority Groups
The Central Oregon Community Investment Board will involve the disadvantaged, minority groups, and rural areas
in all stages of Strategy development and implementation. Notice of the public meeting prior to the adoption of the
Regional Investment Strategy will be sent to the list of disadvantaged and minority group representatives. When
the Central Oregon Community Investment Board initiates the implementation of its regional Strategy by advertising
for applications, it will again notify the disadvantaged and minority groups, and the cities, counties, tribes, special
districts, and non-profit organizations related to economic and community development through a direct mailing.
Following is a list of organizations contacted directly:
Zai it ('rr;G:444:-P.if V i y�.`ss
` , fit.' �y-S+.Y'..--', t#'"tiutr"„`r°'
AARP
Alyce Hatch Center
ARC of Central Oregon
Bend Area Habitat for Humanity
Bend Community Center
Bethlehem Inn Homeless Shelter
Boys and Girls Club
Bridges to Hope Ministry
CASA of Central Oregon
Central Oregon Battering and Rape
Alliance
Central Oregon Council on Aging
Central Oregon Intergovernmental
Council
Central Oregon Resources for
Independent Living
Central Oregon Partnership
Central Oregon Family Resource
Center
Central Oregon Veteran's Outreach
Crook County Family Resource
Center
Crooked River Ranch Senior Group
Deschutes County Commission on
Children and Families
Crook County Commission on
Children and Families
Jefferson County Commission on
Children and Families
Deschutes County Healthy
Beginnings
Early Intervention
Grandma's House of Central Oregon
Haven House
Healthy Start
J Bar J Youth Services
KIDS Center
La Pine Senior Citizens Inc.
Lutheran Family Services
Neighbor Impact
Opportunity Foundation of Central
Oregon
Ochoco Community Clinic/Ochoco
Health Systems
Prineville Senior Center
United Senior Citizens of Bend
Redmond Council for Senior Citizens
Residential Assistance Prog.
Salvation Army
Soroptimists Intl
Senior Citizens of Jefferson County
Sisters Senior Council
Society of St. Vincent DePaul
lIi tg. e pfi-' h% R.`°#$i,XAFk i. `��..f"e,"t.
3; k' ,4f.."'v , , "---,r�^"7"
w
;.Sh~ �. FU Si * --
Confederated Tribes of Warm
Springs
HAABLA
Human Dignity Coalition
Latino Community Association atinoCommunityAssociation
+ l
Cities
m4.
Confederated Tribes of Warm
Springs
Special Districts
Counties
Economic Development
Organizations
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.
Senior 65+
Disabled
Hispanic
2,818
4,085
1,082
Native
American
Poverty
250
14.6%
21.2%
5.6%
1.3%
15,089
18,454
4,304
956
13%
15.9%
3.7%
0.8%
2,363
3,496
3,372
2,981
12.4%
18.3%
17.7%
15.6%
20,270 13.2%
26,035 16.9%
8,758
5.7%
4,097 2.6%
2,357
12%
11,561
9.6%
2,692
13.9%
16,610 10.8%
County
Crook County
Jefferson County
0.85
0.82
Economic Status
Distressed
Distressed
Additionally, there is a significant migrant farm worker population in Jefferson County. This population supports the
agricultural industry, which is primary industry in Jefferson County.
10. Special Uses of Funds
A portion of the Regional Investment funds will be used for activities and projects that assist individual private
businesses in acquiring assets such as land, buildings, machinery and equipment through Business Development
Opportunity Fund sub grants. Grants for fixed asset acquisitions will not displace existing private or public sources of
funding for these acquisitions.
Eligible Activities — Activities eligible to receive grant funds include: acquisition of fixed assets (land, plant, equipment
or other tangible asset that has a useful life lasting longer than twelve months, and is normally subject to depreciation
for income tax purposes), training, and marketing. Grant funds may be used to strengthen the equity position of the
business allowing the project to be financed where it would not otherwise be eligible for loan funds or gap financing.
Ineligible Activities — Grant funds cannot be used for the following:
• Assistance in excess of what is needed to accomplish the purpose of the project.
• Distribution or payment to the owner, shareholders, or beneficiaries or members of their families when such
persons will retain any portion of equity in the project or business.
• The transfer of ownership unless the grant will keep the business from closing, or prevent the loss of
employment opportunities in the area, or provide expanded job opportunities.
• For the purpose of refinancing or restructuring existing debt.
• Displacing existing private or public sources of funding.
Priorities — The following criteria will be considered when determining grant recipients:
• Degree to which the project addresses regional long-term and short-term priorities.
• Number of full time jobs that will be created or retained through the project.
• Dollars invested per job created or retained.
• Funds leveraged.
• Project readiness.
Source: US Census, 2000
Central Oregon Comprehensive Economic Development Strategy
Regional Investment Strategy
Page 23
If selected as a finalist for grant funding, private business applicants may also be requested to provide additional
information as requested by COIC such as: personal financial statements, personal income tax returns, a resume,
business tax returns for the subject business and all affiliate businesses, and income statements, cash flow statements
and balance sheets for the subject business. If requested, this information will be considered confidential and will be
used to perform a financial analysis. The financial analysis must show that the company is viable but cannot
reasonably assume more debt.
The Business Development Opportunity Fund project will exercise reasonable prudence and caution in investment of
Regional/Rural Investment funds, including but not limited to due diligence, "clawback" clauses and security interest in
capital investment where appropriate.
The Community Investment Board will not provide loan funds through the Business Development Opportunity Fund.
11. Management Plan
The Central Oregon Community Investment Board will periodically submit performance reports in a form prescribed by
the Economic and Community Development Department for the Regional Investment Program, to the county
governing bodies in the region, the Oregon Economic and Community Development Commission, the Governor and
the Legislature.
Section 1. Administrative Agent
Crook, Deschutes and Jefferson counties have entered into an agreement with the Central Oregon Intergovernmental
Council for the fiscal and administrative management of the Central Oregon Regional Investment and Rural
Investment Fund programs.
The Central Oregon Intergovernmental Council (COIC) is a government entity organized under ORS 190. COIC is a
state -sanctioned Council of Governments, and since 1972 has been one of the few organizations in the region that
involves all three counties and seven cities in policy-making, program planning and service delivery. COIC is
governed by a 15 -member Board, with representatives from each of the member governments: the counties of Crook,
Deschutes and Jefferson, and the cities of Bend, Culver, Madras, Metolius, Prineville, Redmond and Sisters. Five
members representing the interests of business, tourism, agriculture, wood products, and the
unemployed/underemployed are also on the COIC Board.
From 1993 to 2007, COIC was the fiscal and administrative agent for the Central Oregon Regional Strategies Board
and the Central Oregon Community Investment Board. In the upcoming biennium, as was the case this past biennium,
the majority of the staffing services provided to the Central Oregon Community Investment Board by COIC will be
undertaken by the Program Administrator for Economic Development and the Program Assistant for Economic
Development. The following COIC staff will also provide some level of services to the Central Oregon Community
Investment Board: Executive Director, Fiscal/Administrative Manager Staff Accountant, Accounting Clerk, Community
Relations Coordinator, Computer Technician, and additional administrative staff as needed.
COIC will receive all Regional Investment funds and maintain discrete accounting records for expenditures and cash
balances as required by the State. COIC will develop project contracts for all projects awarded grant funds by the
Community Investment Board. COIC staff will track project progress submit regular progress reports to the
Community Investment Board, and will enforce terms and conditions of the grant awards. COIC will arrange facilities,
provide appropriate notice under the Public Meetings Law, prepare agendas and other supplemental meeting
materials, and record the minutes of all public meetings. Additionally, COIC will file, retain, dispose of, or allow
inspection of public records as required by State of Oregon Public Records Law (see appendix E — COIC Internal
Control Policy and Procedures).
Section 2. Application Process
The Central Oregon Community Investment Board will address Strategy priorities through a two-pronged approach.
The application process for these two approaches is as follows:
Business Development Opportunity Fund: The Central Oregon Community Investment Board will contract with
Economic Development for Central Oregon (EDCO) to identify business recruitment and retention projects that lead to
job creation and/or retention. Throughout the term of the Business Development Opportunity Fund contract, EDCO
will regularly canvass the Central Oregon Chambers of Commerce, Central Oregon Intergovernmental Council,
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 long-term and short-term priorities established by the
Board in the Central Oregon Community Investment Strategy (see Section 7), including job creation and
retention.
• Extent to which the project is ready -to -proceed
• Extent to which the project will leverage additional matching funds
• Extent to which the project is feasible in the short- and long -run
• Extent to which the project cannot secure funding from other financing sources
• Extent to which the outcome of the project can be measured
• Track record of applicant
• Request does not include ineligible costs - Grant funds cannot be used for: debt retirement; reimbursement
of expenses incurred prior to grant award; or the relocation of a facility from one labor market area within
the state to another if not accompanied by an expansion of the applicant's business or employment.
Other Review Criteria Specific to the Regional Investment Fund:
Extent to which the project addresses at least one of the following objectives of the Regional Investment Fund:
(a) the support of communities and populations that have been left out of Oregon's economic expansion
and diversification;
(b) the assistance of companies that are starting up or already in business in Oregon to compete globally;
(c) the reinforcement of Oregon's long-term economic prosperity and livability; and
(d) the coordination of regional efforts for economic and community development, education, workforce
development, natural resource management, and other civic activities
Regional Investment Funds will not substitute for available budgeted resources in supporting ongoing public services
or infrastructure that already exist, but rather will support only new or enhanced services. The funds will not maintain
existing staff of a public or private entity, except staff time dedicated to the administrative needs of the Strategy or
Central Oregon Community Investment Board; or redirected or augmented efforts consistent with the strategy such as
new technical assistance for enhancing regional coordination or local economic development activities/capacity.
Central Oregon Comprehensive Economic Development Strategy Page 25
Regional Investment Strategy
The funds will not be used to fulfill objectives or activities of the Strategy as initiated in a previous biennium. The funds
will not be used to assist with the relocation of a business facility within the state from one labor market to another,
unless the hob losses in the originating labor market are less than or equal to 0.1 percent of the most recently
available estimate for the civilian workforce therein; or the relocation entails an improvement to the quality and a
significant increase in the size of the business's total in-state employment without being detrimental to any rural area,
subject to determination by OECDD.
Section 3. Project monitoring and disbursements
Regional Investment Fund grant dollars will be distributed to Recipients based on the submission of one or more grant
draw down requests by the Recipient, and approval of those requests by COIC. Grant funds will be distributed on a
reimbursement basis for eligible project expenses that are consistent with the project budget and are incurred during
the project period. Source documentation must be submitted for all grant expenses, as outlined below:
A. All grant draw requests must include source documentation for the full amount of funds requested. This
documentation shall include one or more of the following:
1. Invoices, with corresponding cancelled check copy or check number;
2. Receipts for purchases;
3. Credit card statements that clearly delineate purchases, with corresponding cancelled check copy or check
number;
4. Payroll or time and attendance records that clearly demonstrate employee wages and hours; and
5. Other sources that meet the requirements of sections B and C below, and are deemed sufficient by COIC.
B. These documents must permit the tracing of funds to a level of expenditure adequate to establish that the uses of
grant funds are consistent with the approved grant budget as stated within the grant award contract, and that grant
funds have not been used in violation of the restrictions and prohibitions of the grant award contract.
C. These documents must be sufficient to facilitate an effective audit.
Record Retention:
The Recipient must maintain proper books of account and records related to the receipt and expenditure of grant funds
in accordance with Generally Accepted Accounting Principles. The books of account and records must be maintained
in sufficient detail to verify how the grant funds were expended or utilized. The books of account and records shall
include receipts and invoices, as appropriate. The Recipient shall retain and keep accessible the books of account
and records for a minimum of three years following the grant ending date; provided, however, that if there is any audit
issue, dispute, claim or litigation relating to this grant funds, the Recipient shall retain and keep accessible the books of
account and records until the audit issue, dispute, claim or litigation has been finally concluded or resolved.
Central Oregon Community Investment Board Monitoring
COIC provides financial to the Board no less often than quarterly. Status reports on projects are also provided to the
board no less often than quarterly. The grant contract template is approved by legal counsel. Analyzing, processing
and reporting financial transactions are conducted in accordance with GAAP.
12. Evaluation Plan
Following are the Central Oregon Community Investment Board's adopted 2007-2013 regional benchmarks and
performance measures:
Job Creation and Retention: The Central Oregon Community Investment Board will create or retain a minimum of 1 job
for every $5,000 of funding available within the Regional Investment program, including interest 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 eamings. 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:
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
83 Jobs
Jobs Created or Retained, Short -Term
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
City of Sisters
City of Redmond
City of Madras
City of Bend
City of Bend
City of Bend
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.
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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
Infrastructure
Industrial Park Sewer Extention
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.
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Regional Transit Master Plan
Biomass District Energy System
Feasibility Study
Linking Folks, Farms and Food
Community Readiness & Capacity Building
OSU Cascades — New Building Purchase
Technology Education Center -
equipment purchase
Workforce and Education
Redmond City Civic Center - Evergreen
School
Depot Museum Master Plan
Police Station — City Hall
Central Area Plan
Redevelopment, Brownfield and/or Downtown Revitalization
Kah-Nee-Ta Wastewater System
Campus/Downtown Sewer System
Replacement
Campus/Downtown Water System
Replacement
Dry Creek — Water Treatment Plant
Expansion — Phase 1
Eastside Sewer Interceptor Project: Oak
to Antler
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City of Redmond
Creation of master plan for overall wastewater
system overhaul.
Regional transit plan for Cascades East Transit
system
Feasibility study and business plan for biomass
"district energy" systems, in a Combined Heat and
Power application.
Establishment of a food sector cooperative, "Buy
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.
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
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Airport Runway Extension
Demers Road Construction and
Utility Installation
Culver Highway Sewer Collector
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Madras Municipal Airport Aircraft
Hangars
WWII Hangars Preservation
First Street Improvement Project
Stormwater System Development
Community Center Facility
Emergency Homeless Shelter
Infrastructure
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
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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).
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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 Assistancefndustry Cluster Support
Simnasho - Multiuse Facility
Commercial Core Improvement
Plan
Depot and Downtown
Revitalization
Huntington Road Downtown
Streetscape
Redevelopment, Brownfield and/or Downtown Revitalization
Food Bank Facility Construction
Redmond EcoDistrict
Crooked River Ranch Community
Center
Uncle John Ditch Fish Screen
Transportation System Plan:
Alternate Route
Prineville Community Swimming
Pool
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City of Sisters
Warm Springs
City of Sisters
Warm Springs
City of Prineville
City of Metolius
City of LaPine
LaPine Comm.
Kitchen
Hix Rubenstein
Companies
Crooked River
Ranch
City of Sisters
City of Sisters
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 lots 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.
Development of a community pool to increase community
livability and assist in attracting and retaining businesses.
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Restoration and Enhancement
1 Other
Food Sector Feasibility Study
Regional Telecommunications
Infrastructure Assessment
City Website Development
Community Readiness & Capacity Building
Work Force Development - Pacific Warm Springs
Crest Trail Maintenance and
Improvement Program
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Building Code Inspector Training
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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
Will produce local building inspectors in order to facilitate
quicker inspections for new development
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Transportation System Plan:
intersection improvements
US 20/Cascade and Main Ave.
Improvements
Millican Road Industrial Spur
9`h Street — Laughlin Extension
Toni 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 J Street)
Westside Transportation
Improvements
Murphy Road Overcrossing:
Frontage and Collector Streets
COIL
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
City of Bend
k
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.
Development of road access/connectivity to mixed use/
commercial area in the Murphy Road Refinement plan area.
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Oregon
John A. Kitzhaber, M.D., Govemor
October 18, 2011
Deschutes County Board of Commissioners
1300 Wall Street
Bend, Oregon 97701
Dear Commissioners:
Department of Land Conservation and Development
Central Oregon Regional Office
888 NW Hill Street, Suite 2
Bend, OR 97701-2942
Central Oregon Regional Representative (541) 325-6927
Community Service Specialist (541) 318-8193
Fax (541) 318-8361
www.lcd.state.or.us
Thank you very much for the continued opportunity to provide you with our perspective on the
Regional Economic Opportunities Analysis project.
The Department of Land Conservation and Development (DLCD) intends to attend and present
testimony when Deschutes County reconvenes on this matter on October 31, 2011. We will be
glad to respond to additional questions at that time. Until then, we believe that it is useful to re-
visit some of the reasons we funded this project and continue to support it.
It is increasingly obvious that employment, economic development and economic development
planning are regional phenomena and that the many associated assets, opportunities and chal-
lenges are best embraced and managed at the regional scale. At the same time, state and local
govemments' ability to fund initiatives for individual sites and cities is becoming more con-
strained. When natural regions are ready, a regional approach to problem solving is more than a
matter of doing more with less; it really is an opportunity to do better with less.
The administrative rule implementing Goal 9, "Economic Development" (OAR chapter 660, Di-
vision 9), was changed to encourage regional cooperation. This rule change, effective January
01, 2007, did not specify or limit methods to accomplish these regional plans. The challenge that
was offered to and taken up by Central Oregon was to develop a model approach that other re-
gions in the state would find beneficial. DLCD recognizes and appreciates the extensive and
sincere effort that has brought Central Oregon to the place where we are today.
From DLCD's point of view, a key benefit of this regional approach is that it touches both sides
of our mission: land conservation and development. It advances economic development by cre-
ating a method to identify and provide highly suitable employment sites in the short term supply
with infrastructure. It advances conservation by requiring methods of site protection and a
workable regional management plan. In addition, it reduces the likelihood of the many individ-
ual cities speculating on extensive portfolios of large industrial sites without the same level of
infrastructure and protection.
Several questions were posed to various parties, including DLCD, in Deschutes County's staff
memorandum dated September 27, 2011. We have provided brief responses to the four ques-
tions directed at DLCD below. Please do not hesitate to contact us for additional clarification or
request it at the October 31, 2011 meeting.
6. Should each prospective industry identified in the REOA, pages 40-45 be reviewed
individually for warranting a site requirement between 50 to 200+ acres based on its
own site characteristic needs?
DLCD does not believe these steps are necessary. There is a common misperception that an in-
dustry such as distribution, manufacturing or food processing has a specific and consistent set of
site requirements that make planning for such a use straightforward. Actually, each employer
will have a set of requirements that are related to that individual user. For example, distribution
operations range from small service route sales, which can fit into many different site types, to
larger highly automated just -in -time inventory logistics and parcel delivery operations, which
have highly specific site requirements.
A related source of confusion is the inconsistent use of the term "site." Sometimes it is used to
mean a single tax lot and a single user; it is also used to mean a location where raw land is de-
veloped into an industrial park that might include multiple related or unrelated end users or even
a mix of use types.
DLCD recommends, and the rules require, that local governments explain their objectives, pro-
vide evidence and reasons that make the objectives real and reasonable, and adopt policies to im-
plement their plans. As part of this process, local governments should provide as much clarity as
they can, and explain where additional analysis is considered impossible or unfruitful, especially
in response to formal comments in the record.
In the matter at hand, DLCD recommends that the REOA explain by reference to examples how
successful land supply designation and preparation takes place in competitive regions and leads
to development and employment. More specifically, it is likely that the REOA will have to ex-
plain why larger sites are "typical and reasonably related" to identified types of economic devel-
opment opportunity trends identified by local government analyses that meet the requirements of
Goal 9 and Division 9. DLCD recommends that information from Business Oregon be used to
explain the relevance of any examples in addition to information provided in the REOA itself.
14. Has the REOA fulfilled the requirement of OAR 660-009-0015(2) and the require-
ment to identify the number of sites based on site characteristics typical of expected
uses?
See also question 15. Goal 9 and Division 9 clearly require that employment land planning be
based on comparative location advantages and an articulation of opportunities based on national,
state, regional and local trends. This specifically does not mean local governments are required
or restricted to use of historical employment trends extended into the future or derivatives of co-
ordinated population numbers for housing. The analysis should reveal the kinds of opportunities
available. Policies should identify which opportunities are being pursued based on community
objectives. Local governments are then required to estimate the needed number of sites by type
and provide the factual basis and reasoning that support the estimate.
DLCD has previously recommended using real life examples from other regions to inform the
estimate. The selection of the site types is crucial. A preliminary review of the REOA suggests
that the region is contemplating at least one industrial business park of several lots each 50 acres
or larger, yet it is not apparent that large industrial business park is an indentified site type. It is
important to not leave assumptions to the interpretation of the reader, the reviewers or courts.
2
15. Has the REOA satisfied the requirements of Goal 9 by providing an employment
forecast within a 20 -year planning period?
Goal 9 and Division 9 do not require an employment forecast or planning based on an initial em-
ployment forecast. To meet the requirements of Division 24 when amending a UGB to include a
site in compliance with the regional plan, cities will be required to provide an estimated em-
ployment projection for the city at full build out within the planning period by applying the
adopted REOA analysis and plan to the particulars of the site.
17. Does the REOA and Deschutes County's plan amendment require that the inventory
for large -lot employment sites, OAR 660-009-0015(3) (immediate & 20 year) be com-
pleted as part of this legislative process?
We do not believe that this step will be necessary. The required analysis will have to be in place
at the time land designations are changed or a UGB amended by a participating city to comply
with OAR 660-024. The innovative approach proposed in the REOA splits the determination of
site need, the assignment of site dispersal and a site supply management program legislated by
the counties under their statutory coordination authority from subsequent city actions that deter-
mine site deficit and location to comply with Goal 14.
DLCD recommends that the counties include plan policies reminding cities to comply with state
land use program requirements when changing land designations or amending a UGB, including
conducting a local inventory to determine whether a local deficit exists. We also recommend
that the counties include plan policies directing cities to not conduct regional inventories because
the counties have established plan policies under their statutory coordinating authority to limit
and disperse the number of sites that can be included in the various UGBs, as well as a program
to manage the supply. DLCD has previously provided written comments that encourage local
governments to continue to work with the department and commission on this untested method-
ology.
Again, thank your for your hard work and the opportunity to comment. We look forward to
meeting with you on October 31.
Sincerely,
Karen Swirsky, AICP Thomas Hogue
Central Oregon Regional Representative Economic Development Planning Specialist
3
Community Development Department
71 S.E. D Street, Madras, OR, 97741
541-475-3388
October 19, 2011
Deschutes County Board of Commissioners
Deschutes County
1300 NW Wall Street, 2nd Floor
Bend, OR 97701
Subject: Written Testimony for the October 31, 2011 Deschutes County Board of
Commissioner's meeting related to the Regional Opportunities Analysis (REOA).
Dear Commissioners ,
I am not able to attend your October 31, 2011 Board of Commissioner's meeting to provide
testimony on the proposed Comprehensive Plan amendment to adopt the Large Lot Industrial
Regional Opportunities Analysis (REOA). As such, I would request that this letter be included in
the record for the matter.
That being said, I would impress upon you that the level of coordination between the three
counties and six cities in the region on this project is tremendous and should be recognized.
While the City of Madras may not take the necessary actions to address the regional Targe lot
industrial land need due to other economic constraints, we most certainly fully support
Deschutes County in amending its Comprehensive Plan to adopt the REOA. It is also important
to note that the participating cities and counties have already started thinking about a regional
governance plan for the REOA and have received a grant from DLCD to establish a regional
governance plan. Again, this level of collaboration and coordination is tremendous and all are
working to fully implement this project to improve the region's economic conditions.
I am aware of the technical issues identified by 1,000 Friends. I encourage you to seek the
counsel from Deschutes County Community Development Department and DLDC staff. This is
a critically important project for Central Oregon; DLCD has awarded over $75,000 for this
project; and I am certain that State statue and rule allow you to adopt the Large Lot Industrial
REOA into the Deschutes County Comprehensive Plan.
Respectfully,
Wit
Nicholas S. Snead
Community Development Director
An Equal Opportunity Provider
Page 1 of 1
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 266 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 B, we
have seen a number of similarly sized or smaller jurisdictions have considerable success in
attracting large firms.
RELATIONSHIP BETWEEN LARGE INDUSTRIAL LOTS AND JOBS
• 1000 Friends contends that the case is not made that large 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 196 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
.:
50-100 ACRES
_.._. .......
100-200 ACRES-
_.. ...__..._.
200+ACRES
TOTAL'
_._ _...
SHORT TERM
Number of Sites
3
2
1
6
Jurisdictions
3
2
1
LONG TERM
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
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Comparison of Recent Oregon EOAs: Job Growth vs. Large Lot Need
- -20-year Employment Growth
+20 -year 50+ Acre Industrial Lot Need
Blllsoem WIltenullle Medford Bend Salem Eugene Sp,i,&0W Bear creek COAEO0
600
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With these modifications, the large lot demand based on the rate of employment growth is not
inconsistent with the limited number of case studies cited.
0.04
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F 0.03
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1-
0.02 0.02
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LARGE LOT DEMAND ESTIMATE/20-YEAR EMPLOYMENT GROWTH
•
Hillsboro Wilsonville Medford Bend Salem Eugene• Springfield• Bear Creek CO-REOA
IURISDICBON
• 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 lobs
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
1000
friends
of Oregon
534 SW Third Avenue, Suit. .40 • Portland, OR 97204 • (503) 497-1000 • fax (503) __4-0073 • www.friends.org
Southern Oregon Office • PO Box 2442 • Grants Pass, OR 97528 • (541) 474-1155 • fax (541) 474-9389
Willamette Valley Office • 220 East 11111 Avenue, Suite 5 • Eugene, OR 97401 • (541) 520-3763 • fax (503) 575-2416
Central Oregon Office • 115 NW Oregon Ave #21 • Bend, OR 97701 • (541) 719-8221 • fax (866) 394-3089
October 5, 2011
Peter Gutowsky
Deschutes County Planning Department
117 NW Lafayette Avenue
Bend, OR 97701
VIA EMAIL
Peter.Gutowsky@deschutes.org
Dear Peter,
Thank you for the work you did to clarify the concerns that 1000 Friends raised. Your memo made it
evident that there are significant questions that have not been answered. I think with this effort to
take these questions seriously we are likely to come up with a solution. 1000 Friends wants to see
central Oregon get some large lots. It just has to be proportional to a realistic employment forecast.
In the spirit of cooperation I'd like to offer a couple of clarifications to the questions you posed in the
staff memo and suggest a couple additional ones. Overall I think you did a good job of distilling my
concerns down to short sentences. Hopefully the people who answer the questions will refer to the
actual letters too because there are nuances in there that simply can't be caught in highlights. I just
want to make sure that when you re-engage the consultant, Business Oregon, and DLCD that the right
questions get addressed. Below are some clarifications. After that are some questions that might
have been Left out.
Clarifications
I've numbered the points in the same way you numbered them for quick reference.
3. Evidence on line 11 of figure 25, page 43 indicates that businesses with 20 or more employees are
shedding jobs. Thus it appears to us that this is a shrinking sector of the economy. In the analysis
of this chart the REOA suggests that we should be getting a "fair share" of the large business in
the western US. But if the sector is shrinking, it doesn't appear to us that there is any fair share to
get. What is a fraction of zero? Admittedly, the chart indicates that some businesses are
expanding, however, the expansions are almost entirely negated by the contractions. Why would
new or growing businesses move here rather than on to the lands being vacated by other shrinking
businesses? Why would growing businesses move here where they might have to import workers
rather than locating where shrinking companies are laying people off?
Page 1
One sentence version:
Evidence on line 11 of figure 25, page 43 indicates that businesses with 20 or more employees are
firing more people than they are hiring. If this economic sector is shrinking in the western US
generally, why should we expect to see growth in central Oregon in particular?
5. I would reword as follows: "What evidence justifies the changes to the chart on page 40 from the
earlier version released on Nov. 24, 2010? How can a business that needs 50 acres have identical
infrastructure needs to a business that has 200+ acres? If the discrepancies and changes are
justified, what evidence shows they are scaled appropriately for central Oregon."
Also, upon rereading my comments I realized that I failed to include an attachment of the original
chart. It's attached here.
10. I would recommend re -phrasing this one as follows: "What is it about competing regions that has
enabled their success?"
There is evidence in the Metro Urban Growth Report (att'd to the 1000 Friends letter dated Sept.
26, 2011) that large businesses in the Metro area went to the trouble of aggregating many small
lots in order to create large lots on which to locate. Obviously, in that case there were reasons to
be in that area that were so compelling that businesses were willing to overcome the large lot
obstacle. It would be helpful to know what those reasons were. Some of the reasons may be
outside of a local government's sphere of influence. But some may not. For example, adequate
infrastructure such as sewer, or telecom cables may be the deciding factor. Even if the problem is
lack of an educated workforce, our elected officials should know that so they can prioritize efforts
to expand the university offerings in central Oregon.
As a policy point, not just a legal point, I would recommend rephrasing this question "What is it
about successful competing regions that has allowed them to attract stable living wage jobs"
12. I think you meant "Please clarify the land need in the chart on page 46. Are the short term needs
in addition to the long term needs, or do the long term needs incorporate the short term needs?"
15. There is an employment forecast in the REOA. But it's the OED forecast, which, as I understand
the OED forecasts, predicts employment based on both growth of existing companies, and the
number of external companies that have historically moved to an area. The REOA claims that
100% of the large lots will be occupied by businesses that bring "exogenous" employment
opportunities. I have read this to mean external to the standard employment growth forecasts - all
of which are accounted for by the various city -level EOAs and employment forecasts.
If I am right about this, then I think you mean "Has the REOA satisfied the requirements of Goal
9 by providing an employment forecast that justifies the amount of land it concludes is required
for large lots within the 20 -year planning period?
r
1000
friends
of Oregon
:r
Central Oregon Office • 115 NW Oregon Ave #21 • Bend, OR 97701 •
(541) 719-8221 • fax (866) 394-3089
Page 2
16. How is this different from 12?
Additional Questions:
There are a few additional questions that I think should be highlighted.
A. Does the number of sites required rely on "market choice"? If so, how does the REOA square that
with the holding in 1000 Friends v. DCDC, 237 OrApp 213 (2010) (Woodbum)?
B. Figure 28 only uses the births and expansions of large businesses to determine how many more
businesses central Oregon should see in the next 20 years. For land need purposes, shouldn't the
net expansion rate be used? If not, why not?
C. The REOA claims a land need that far exceeds the land need identified by any other Oregon
jurisdiction when viewed in light of expected employment growth. Why is central Oregon's land
need so disproportionate to any other jurisdiction in the state?
D. Is it accurate that once a 20 -year need is identified that the jurisdictions that adopt this plan are
under an obligation to bring in the entire amount under OAR 660-009-0025(2) and OAR 660-024-
0050(4)?
E. Exactly what is the evidence that this need is "exogenous" or above and beyond the needs already
accounted for by the OED forecasts? (This will be kev in determining whether cities who adopt
this should bring in new land or reallocate existing industrially zoned land to more large lot
zoning.)
Again, I offer this in the spirit of cooperation. My hope is that we can get to the bottom of all these
concerns before the next hearing on October 31. I offer these clarifications in the hope that the real,
pressing questions actually get answered.
Please enter this letter into the record, and please feel free to contact me if you have any further
questions.
Best Re
-47
Pam ' ardy
Staff Attorney & Central Oregon Advocate
1000
friends
of°rrix+
Central Oregon Office • 115 NW Oregon Ave #21 • Bend, OR 97701 •
(541) 719-8221 • fax (866) 394-3089
Page 3
FIGURE 20: INDUSTRIAL DEVELOPMENT PROFILE MATRIX
OREGON ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT
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DESCHUTES COUNTY 1 CENTRAL OREGON REGIONAL LARGE -LOT EOA
PAGE 25
534 SW Third Avenue, Suite 300 • Portland, OR 97204 • (503) 497-1000 • fax (503) 223-0073 • www.friends.org
1000
friends
of Oregon
r
Southern Oregon Office • PO Box 2442 • Grants Pass, OR 97528 • (541) 474-1155 • fax (541) 474-9389
Willamette Valley Office • 220 East 11* Avenue, Suite 5 • Eugene, OR 97401 • (541) 520-3763 • fax (503) 575-2416
Central Oregon Office • 115 NW Oregon Ave #21 • Bend, OR 97701 • (541) 719-8221 • fax (866) 394-3089
October 5, 2011
Peter Gutowsky
Deschutes County Planning Department
117 NW Lafayette Avenue
Bend, OR 97701
VIA EMAIL
Peter.Gutowsky@u,deschutes.org
Dear Peter,
Thank you for the work you did to clarify the concerns that 1000 Friends raised. Your memo made it
evident that there are significant questions that have not been answered. I think with this effort to
take these questions seriously we are likely to come up with a solution. 1000 Friends wants to see
central Oregon get some large lots. It just has to be proportional to a realistic employment forecast.
In the spirit of cooperation I'd like to offer a couple of clarifications to the questions you posed in the
staff memo and suggest a couple additional ones. Overall I think you did a good job of distilling my
concerns down to short sentences. Hopefully the people who answer the questions will refer to the
actual letters too because there are nuances in there that simply can't be caught in highlights. I just
want to make sure that when you re-engage the consultant, Business Oregon, and DLCD that the right
questions get addressed. Below are some clarifications. After that are some questions that might
have been left out.
Clarifications
I've numbered the points in the same way you numbered them for quick reference.
3. Evidence on line 11 of figure 25, page 43 indicates that businesses with 20 or more employees are
shedding jobs. Thus it appears to us that this is a shrinking sector of the economy. In the analysis
of this chart the REOA suggests that we should be getting a "fair share" of the Large business in
the western US. But if the sector is shrinking, it doesn't appear to us that there is any fair share to
get. What is a fraction of zero? Admittedly, the chart indicates that some businesses are
expanding, however, the expansions are almost entirely negated by the contractions. Why would
new or growing businesses move here rather than on to the lands being vacated by other shrinking
businesses? Why would growing businesses move here where they might have to import workers
rather than locating where shrinking companies are laying people off?
Page 1
One sentence version:
Evidence on line 11 of figure 25, page 43 indicates that businesses with 20 or more employees are
firing more people than they are hiring. If this economic sector is shrinking in the western US
generally, why should we expect to see growth in central Oregon in particular?
5. I would reword as follows: "What evidence justifies the changes to the chart on page 40 from the
earlier version released on Nov. 24, 2010? How can a business that needs 50 acres have identical
infrastructure needs to a business that has 200+ acres? If the discrepancies and changes are
justified, what evidence shows they are scaled appropriately for central Oregon."
Also, upon rereading my comments I realized that I failed to include an attachment of the original
chart. It's attached here.
10. I would recommend re -phrasing this one as follows: "What is it about competing regions that has
enabled their success?"
There is evidence in the Metro Urban Growth Report (att'd to the 1000 Friends letter dated Sept.
26, 2011) that large businesses in the Metro area went to the trouble of aggregating many small
lots in order to create large lots on which to locate. Obviously, in that case there were reasons to
be in that area that were so compelling that businesses were willing to overcome the large lot
obstacle. It would be helpful to know what those reasons were. Some of the reasons may be
outside of a local government's sphere of influence. But some may not. For example, adequate
infrastructure such as sewer, or telecom cables may be the deciding factor. Even if the problem is
lack of an educated workforce, our elected officials should know that so they can prioritize efforts
to expand the university offerings in central Oregon.
As a policy point, not just a legal point, I would recommend rephrasing this question "What is it
about successful competing regions that has allowed them to attract stable living wage jobs"
12. I think you meant "Please clarify the land need in the chart on page 46. Are the short term needs
in addition to the long term needs, or do the long term needs incorporate the short term needs?"
15. There is an employment forecast in the REOA. But it's the OED forecast, which, as I understand
the OED forecasts, predicts employment based on both growth of existing companies, and the
number of external companies that have historically moved to an area. The REOA claims that
100% of the large lots will be occupied by businesses that bring "exogenous" employment
opportunities. I have read this to mean external to the standard employment growth forecasts - all
of which are accounted for by the various city -level EOAs and employment forecasts.
If I am right about this, then I think you mean "Has the REOA satisfied the requirements of Goal
9 by providing an employment forecast that justifies the amount of land it concludes is required
for large lots within the 20 -year planning period?
1000
iiifziertds
ofOrc{an
Central Oregon Office • 115 NW Oregon Ave #21 • Bend, OR 97701 •
(541) 719-8221 • fax (866) 394-3089
Page 2
16. How is this different from 12?
Additional Questions:
There are a few additional questions that I think should be highlighted.
A. Does the number of sites required rely on "market choice"? If so, how does the REOA square that
with the holding in 1000 Friends v. DCDC, 237 OrApp 213 (2010) (Woodburn)?
B. Figure 28 only uses the births and expansions of large businesses to determine how many more
businesses central Oregon should see in the next 20 years. For land need purposes, shouldn't the
net expansion rate be used? If not, why not?
C. The REOA claims a land need that far exceeds the land need identified by any other Oregon
jurisdiction when viewed in light of expected employment growth. Why is central Oregon's land
need so disproportionate to any other jurisdiction in the state?
D. Is it accurate that once a 20 -year need is identified that the jurisdictions that adopt this plan are
under an obligation to bring in the entire amount under OAR 660-009-0025(2) and OAR 660-024-
0050(4)?
E. Exactly what is the evidence that this need is "exogenous" or above and beyond the needs already
accounted for by the OED forecasts? (This will be key in determining whether cities who adopt
this should bring in new land or reallocate existing industrially zoned land to more Targe lot
zoning.)
Again, I offer this in the spirit of cooperation. My hope is that we can get to the bottom of all these
concerns before the next hearing on October 31. I offer these clarifications in the hope that the real,
pressing questions actually get answered.
Please enter this letter into the record, and please feel free to contact me if you have any further
questions.
Best Re
Pam • ardy
Staff Attorney & Central Oregon Advocate
( 1000
friends
of °Tern
Central Oregon Office • 115 NW Oregon Ave #21 • Bend, OR 97701 •
(541) 719-8221 • fax (866) 394-3089
Page 3
FIGURE 20: INDUSTRIAL DEVELOPMENT PROFILE MATRIX
OREGON ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT
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DESCHUTES COUNTY 1 CENTRAL OREGON REGIONAL LARGE -LOT EOA
PAGE 25