August 2008 eCon Update
EDCO joins statewide initiative to attract solar industry to Oregon
 EDCO will be part of a statewide effort this September to attract additional solar industry to Oregon. An organized team of business and regional economic development organizations will attend the 23rd European Photovoltaic Solar Energy Conference (EU PVSEC) in Valencia Spain, September 1-5. The global event, one of the world’s three big PV conferences, brings together research and development experts, industry, utilities, architects and end-users and features over 600 exhibitors in 30,000 square meters of space. State officials and economic development professionals believe Oregon to be one of a handful of states well positioned to attract new solar operations in the next few years. They cite the renewable energy mandate passed last year by the state legislature, a well developed corollary in the semi-conductor business, significant academic research in the PV arena, as well as a statewide stance that’s both pro-business and pro-environment and has the right mix of incentives specifically for this industry. Find out more about the conference and trade show here.
Local companies express interest in Juniper Ridge as an expansion option
We’ve seen more companies express interest in relocating to Juniper Ridge as the latest positive news that land may be available in the city-owned development. Even though an agreement has not been solidified between ODOT and the City of Bend, both parties are positive that meetings in August will bring a solution that will allow at least allow part of the first phase development. EDCO has been involved getting the word out of the potential opportunity to expanding companies. EDCO has facilitated numerous meetings between the City and interested companies as well as making the subject the focus of the latest quarterly Bend business roundtable held June 24 at Structus Building Technologies. With the recent change in leadership at the City, it appears focused on both short and long term solutions for the ongoing shortage of employment land of all types.
State grants Redmond e-commerce zone status
 At the end of July, the Oregon Community and Economic Development Commission (OECDD) approved the City of Redmond’s application to offer E-Commerce Zone incentives to prospective local or new qualifying businesses in Redmond’s Enterprise Zone. The benefit to the qualifying company is they may receive a credit against the firm’s annual state income or corporate excise tax liability. The credit equals 25 percent of that tax year’s investment cost in capital assets for operations related to electronic commerce, capped at $2 million per year. Companies engaging predominantly in transactions via the Internet or an Internet-based computer platform may qualify. These transactions can include taking orders, closing sales, making purchases, providing customer service or undertaking other activities that serve the business’s overall purpose, even if retail in nature. “The E-Commerce incentive -- coupled with the Enterprise Zone incentive -- is a terrific combo to attract high tech companies to Redmond,” said Jim Hendryx, Redmond’s Community Development Director and manager of the Redmond Enterprise Zone program. The first company poised to use this new incentive is e-retailer Altrec.com, who expanded to Redmond from the Seattle metro area in 2006.
Future of regional rail freight service to be assessed
The City of Redmond, working in cooperation with the Central Oregon Area Commission on Transportation (COACT), has received a $40,000 grant from the State of Oregon’s Department of Land Conservation and Development to conduct a rail freight opportunity analysis in Central Oregon. National railroad companies serving Central Oregon have stated they no longer wish to directly serve local industrial businesses, so one of the study outcomes will be a market analysis of the future rail freight service to Central Oregon. The study will evaluate and examine: rail-accessible land supply (both current and future), current and potential rail freight users, possible rail freight terminal and/or inter-modal sites on the Oregon Trunk Line between La Pine and Madras, and on the City of Prineville Railway Line between Redmond and Prineville.
COCC gears up for November bond issue to expand regional centers, health and science careers
 Central Oregon Community College is seeking approval for a bond measure to build a new health careers and science building, construct regional student outreach education centers in Madras and Prineville, renovate existing space to accommodate record enrollment and upgrade college buildings to improve access for students with disabilities. The measure will be on the November ballot. The new health careers and science building will create additional lab and student learning space for programs in nursing, dental assisting and medical assisting, and expand capacity for the science programs and courses such as Anatomy and Physiology, Microbiology and Chemistry. The bond measure is for $43.75 million; cost to homeowners would be approximately 12 cents per $1,000 of assessed value. The only COCC bond currently being assessed is for the Library and that bond will be paid off this November. Therefore, if the measure passes, the tax rate is estimated to increase less than 3 cents per $1,000 of assessed value, or about $5.50 a year on a house assessed at $200,000.
News from the High Desert Enterprise Consortium (HiDEC)
PCC Schlosser kaizen captures big improvements
PCC Schlosser, a titanium casting company, recently held a three-day kaizen event at their facility in Redmond. No small order, the event was designed to generate order-of-magnitude improvements in set-up time and cost, change paradigms, generate enthusiasm, and bring rapid, low-cost solutions. “The team had remarkable success,” said consultant Gary Conner. “They netted over 30% reduction in X ray shooting from an average of 6 minutes per shot down to 4 minutes.” Josh Lau, PCC’s Operations Manager, echoed Conner’s enthusiasm. “Gary did an excellent job hosting the event in a very complicated manufacturing process. The outside guests had more insight than I could have imagined.” Asked about bottom line results, Lau shared “we identified in excess of $100K in opportunity that we now need to go out and capture!” Such process improvements realized through HiDEC events and other Lean implementations have saved Central Oregon companies hundreds of thousands of dollars over the past year.
Lean 101 and value stream mapping classes
Holding a successful event in Central Oregon during summer months can be a challenging – but not so with HiDEC. Thirty six HiDEC members attended classes July 28 and 29 to learn the basics of Lean and the process of mapping a product value stream. Nikki Olsen from Deschutes Brewery relayed that “it was wonderful to have the opportunity to learn with other folks in different industries.” Joining Deschutes Brewery were teams from Fuqua Homes, Suterra, Structus Building Technologies and Precise Flight – interestingly, none shared the same industry.
New member
HiDEC welcomes Central Oregon Resource for Independent Living (CORIL) to it membership. CORIL develops and maintains numerous quality partnerships with local businesses in the Central Oregon area. These companies outsource some of their work to CORIL’s 5,000 SF Bend work center or vendors’ locations. Executive Director Jim Lee is eager to get started on the Lean manufacturing path. “We understand the importance of commitment when entering into this kind of initiative,” said Jim about his organization learning new lean manufacturing principles. “Our staff is interested in becoming fully vested in this process and adopting lean as part of our core team.”
Upcoming HiDEC eventsContact Eric Strobel if you’d like to participate in these HiDEC classes:
General Membership Meeting – August 26
Cell Creation Kaizen Event at Fuqua Homes – September TBA
Bend Venture Conference calls for presenting companies
 Bend Venture Conference (BVC), scheduled for October 16-17, is now accepting applications for seed and early stage companies to present at the event at the Tower Theatre. The application deadline is September 12. The BVC Investor LLC, established in 2006, will provide funds of at least $100,000 which will be awarded to the early stage company voted best positioned for explosive growth and returns. All presenting companies, whether or not from Central Oregon, will be eligible to compete for the award. The winning company will be announced at the conference’s closing reception. Find out more information about BVC 2008.
Local employers celebrate key milestones
Shielding International, located in Madras, celebrated its 50th anniversary and hosted an open house to show off its new 20,000 SF building July 31. CEO Susan Kovari said several hundred people attended the event, which speaks to the positive future ahead for the company that currently employs 23. Since 1958, has served the x-ray protective needs for a variety of sectors across the globe, including the medical, dental, veterinary, nuclear and baggage and security inspection industries.
A few days earlier, Bend-based Fuqua Homes celebrated its 40th anniversary with a party and tours of its latest models, including its upscale Northwest lodge model. Fuqua’s owner, Phil Daniels, credits new models, customization options and tapping new markets (including Canada) for the recent uptick in business. Fuqua has found a sweet spot of value, customization and speed that has attracted new buyers to manufactured housing. The 300-employee division in Bend has personally built over 21,000 homes in total; Fuqua just surpassed 100,000 homes company wide. Read more in this article from The Bulletin.
BEND LIVING receives magazine industry’s top awards
BEND LIVING won two top awards at the magazine industry’s 57th Annual Maggie Awards, held at the Westin Hotel in Los Angeles in May. The Maggie Awards are the industry’s top prize and a function of Western Publications Association. BEND LIVING’s October 2007 portfolio “Courage & Strength,” featuring dramatic photographs of women whose lives have been touched by breast cancer, won Best Black and White/Two-Color Layout. One Bend resident’s tale of coming to the aid of school children in earthquake-devastated Kashmir in “Kashmir Journal” (February 2007) won Best Color/Editorial Layout.
New “flat” leadership model for business fits schools too
 School’s still out for summer. But around Oregon, teachers are preparing their classrooms for another year. Sue Hildick,President of the Chalkboard Project, which is sponsored by Foundations for a Better Oregon, tells us that this fall, teachers in three Oregon school districts will begin the new year with the same kind of alternative leadership models taking hold in many private sector companies. A grant from the nonprofit Chalkboard Project is helping Sherwood, Tillamook and Forest Grove pioneer new career paths under the CLASS Project. CLASS stands for Creative Leadership Achieves Student Success. In business, these new leadership models are called “decentralization” or “flat leadership.” Similarly, in Sherwood for example, Collaborative Learning Teams give teachers new roles, new responsibilities and even better pay for taking on that creative leadership. This school year in these three districts, the CLASS Project is reshaping the teaching profession with one clear aim…enhancing student achievement. Visit the Chalkboard Project for information about this initiative and the roles of teachers in the CLASS Project.
UPCOMING EVENTS
August 15: Town Hall – Roadblocks and opportunities for economic development
For years, Bend has been a great place for new businesses to come and flourish. But with the new economic trends, is Bend still feasible for new companies? What are some of the roadblocks new businesses are facing? Join the Community Affairs Council (CAC) Town Hall luncheon as Roger Lee from EDCO discusses how EDCO is working with new businesses coming to the area, and the current trends he sees in the market today. To join the CAC Town Hall luncheon series, register online or call Lindi at 382-3221.
September 1: COTV11 to air segment on obstacles to regional economic development
 Jamie Christman, host of COTV’s Talk of the Town show, is assembling a panel to discuss transportation conditions and what’s potentially stalling regional economic development. The studio audience date is August 25th and the scheduled air date is September 1, 2008 at 7 pm. To be part of the audience for this town hall style discussion (requires that you be there at 5:30 pm, August 25th) or to find out more about the segment, visit the Talk of the Town website.
September 25: Registration opens for third annual COWIB workforce forecast breakfast
This year’s September breakfast event looks to improve the region’s economy through developing partnerships between industry and the private sector. Keynote presenter Barbara Hins-Turner will discuss the “Value of Partnerships in Workforce Development: Education, Labor, Economic Development, and the Private Sector,” with a specific focus on renewable energy trend. Hins-Turner has 20 years of experience providing collaborative leadership for energy industry workforce training and development initiatives. She currently serves as Executive Director for the Centralia College Center of Excellence for Energy Technology, Project Manager for the Pacific Northwest Power Generation Skill Panel and is a member of the national Center for Energy Workforce Development Educational Council. Prior service includes Director of PGE’s Corporate University, Chair of the Utility Education and Training Alliance Pacific Northwest Chapter, and Chair of the Western Energy Institute Innovative Strategies for Workforce Development. The breakfast is Thursday, September 25, from 7:30 to 9:30 am at St. Charles Hospital in Bend; individual reservations are $25 and a corporate tables of 8 are $150. Event sponsors include the Partnership to End Poverty and Economic Development for Central Oregon. To register, contact Dayna at EDCO or call 541-388-3236 by September 23, 2008.
September 17-18: Survivor - meeting safety challenges in changing times
Central Oregon Occupational Safety & Health Associations (COSHA) is sponsoring a Health and Safety Conference to be held at Eagle Crest Resort in Redmond. This affordable two-day conference features nationally acclaimed speakers David Rabiner and Dan Miller and other experts who offer guidance on innovative and cost-saving ways to enhance safety, prevent accidents, and build effective performance. Open to the public, participants may opt to attend both days ($150) or a single day ($80); the conference runs 7:30 – 5:00 each day with hot buffet breakfast and lunch included. Booth space and sponsorship opportunities are available; contact Darcie Davis with Employment Source, Inc. at 541- 389-1718. A pre-conference charity golf tournament will be held at Eagle Crest to benefit local charities on September 16. Obtain more information about the conference, including downloadable programs and registration forms.
September 18: Celebrate Oregon’s best – and cheer on local solar manufacturer PV Powered
Oregon Entrepreneur’s Network is putting on its 15th anniversary dinner honoring the best of Oregon’s rule-breaking, adventure-addicted entrepreneurs at the Oregon Convention Center. This year’s event theme “Rogues and Renegades” honors the independent spirit of Oregon’s entrepreneurs. The high profile event attracts a crowd of 900 or more of Oregon’s most influential business people. This year, Bend’s own solar company PV Powered is a finalist in the Working Capital category, one of four in which companies compete. Call EDCO at 388-3236 if you or your company is considering attending. For more details, visit www.oen.org.
September 25-26: 2008 annual Oregon commercial real estate conference
The Commercial Investment Division (CID) of the Central Oregon Association of Realtors is hosting their annual conference at The Riverhouse Thursday afternoon and Friday morning. Thursday’s luncheon features Bob Gerding, co-founder and Principal of Gerding Edlen Development, the largest Green developer in the U.S., and Erik Gerding, Project Manager of Bend’s first Gold LEED Class A office building – the combined ODS Bend and Western Title Headquarters. See flyer for cost and timing details.
Mid Oregon Credit Union hosts “Maximize Your Money Workshops” series
These two free workshops are offered by Mid Oregon Credit Union; call 541-382-1795 to reserve your seat.
- August 26: Chicks Building Nest Eggs
Anne Sinno of MEMBERS Capital Advisors shows women how careful, competent, and disciplined investing can help attain financial security. She’ll cover investment considerations specific to women, financial basics, investments strategies, and investing for retirement. The workshop is at the East Bend Branch, 1386 NE Cushing Drive, and starts at 6 p.m.
- September 18: First-Time Home Buyer
Shirley Saarinen, Mid Oregon Credit Union Mortgage Manager, will provide practical information to help prepare first-time buyers, including: costs, mortgage types, where to start looking, how to shop and apply for a home loan, how closing works, and where to find assistance programs. The workshop is at the Prineville Branch, 6 p.m.
Renewing Members
Our thanks go to these renewing members who make possible EDCO's work to recruit new companies to Central Oregon and to help existing companies in the region expand.
Individual
Art Passions Design – 2007
Cascade Commercial Appraisal Services, LLC - 2006
Cascadian Group, LLC - 2006
Coldwell Banker Morris Real Estate, Al Eastwood - 2005
COLM Commercial Real Estate, Maxine Ribera-Card - 1986
John L. Scott – Bobbie Strome - 1989
Re/Max Equity Group, Mary Stratton – 2004
Robin Gould - 2006
Steve Scott Realtors, Patrick Kesgard - 2005
Bronze
1031 Asset Exchange, LLC - 2006
AP Swiss - 2006
BTL (Bend Tarp Liner) – 2004
Bend – La Pine School District – 2001
Bob Thomas - 1986
Century Insurance Eberhard’s Dairy Products - 1987
G5 Search Marketing - 2004
GL Suite, Inc. - 2004
Harrigan Price Fronk & Co. LLP - 1998
Jan Baker Facilitates – 2005
Jones & Roth, P.C. – 1996
Journeys by Ambassador - 2006
Juniper Fuel - 2001
Lumbermens Insurance - 1987
The McDonald Group - 2007
Mid Oregon Personnel – 2005
Miller Lumber - 1986
Newland Communities – River Rim - 2003
Pine Tavern - 1986
Pinnacle Architecture – 2007
Press Pros - 1988
Oliver Commercial Group - 1988
R & H Construction - 2005
The Redmond Spokesman - 1987
Robberson Ford – 1986
Smith CFI – 2004
T-Mobile - 2004
Silver
Contact Lumber - 2006
Compass Commercial, Inc. - 1996
Deschutes Brewery - 2000
Eagle Crest Partners - 1987
Hayden Homes – 2007
LifeWise Health Plan of Oregon - 1999
MHi – 1988
Mid State Electric Cooperative - 1991
Pepsi Cola Bottling Company of Bend - 1998
Sage Insurance – 1987
Schwabe, Williamson & Wyatt - 2003
Structus Building Technologies, Inc. – 2005
US Allegiance - 2004
William Smith Properties - 1993
Financial Institution
Liberty Federal Bank - 1997
Premier West Bank - 2005
Selco Community Credit Union – 2001
South Valley Bank & Trust – 2006
Umpqua Bank - 2004
Gold
The Bulletin - 1987
Hooker Creek – 2004
Platinum
Mid Oregon Federal Credit Union - 1986
St. Charles Medical Center - 1986
New Members
Bronze Level
Kinetic Branding
 A new start-up from local marketing and branding veterans, Kinetic Branding was founded by Steve Curley and Paul Ruettgers, professionals that provide integrated brand and marketing communications from a strategic point of view. Curley says the new marketing company emphasizes strategic thinking, creative design, and a strong understanding of each client’s individual needs. “We bring creative energy to help each client achieve unique, compelling and relevant solutions to communicate their brand,” he says “which builds lasting impressions and long-term value for their business.” For more information, contact Steve Curley or call 541-550-7272.
The Deschutes Land Trust
 A Bend-based nonprofit organization, the Deschutes Land Trust aims to conserve land in Central Oregon for wildlife, scenic views, and local communities. By working cooperatively with private landowners and local communities, the Land Trust protects lands important to Central Oregon’s future, and has protected more than 7,200 acres since 1995. The Trust owns and cares for four Community Preserves throughout Central Oregon which are protected for wildlife but open to the local community for hiking, biking, bird watching and other uses. Find out how to explore the Preserves on your own or on a guided hike or walk.
The Land Trust's most recent conservation success includes an agreement with the owners of Ranch at the Canyons to permanently protect 550 acres along the north flank of Smith Rock State Park, which includes portions of the Crooked River, wildlife migration corridors, deer winter range, and outstanding scenic views of Smith Rock. Similarly, the Trust has been in discussions with the owners of Skyline Forest for several years to acquire and conserve this vital area west of Bend, made possible by legislation the Trust sponsored that supports community forests. Find out more here.
PROJECTS
DONE DEALS
Electronic retailer Altrec (more commonly known as Great Outdoors.com) has completed expansion of their Redmond facility to accommodate growth. The $1 million expansion project will generate 20 jobs; EDCO provided assistance with incentives and logistics. The online retailer will benefit from implementation of Redmond’s new e-commerce overlay to their enterprise zone. (See earlier story.)
Rock Solid Precast has moved from Bend to Prineville with its concrete casting operation, and is now operating from its new facility. The company leased space in Baldwin Industrial Park and invested several hundred thousand dollars into new equipment for the casting process. Rock Solid has increased their employment by three new jobs to Prineville.
PENDING PROJECTS
Without breaching obligations of confidentiality, we want to make you aware of a few of our pending projects for the region – a section of the newsletter we update every other month. They include, but are not limited to:
ODS Companies – progress continues on the new 88,000 SF combined ODS & Western Title office complex in the Old Mill District. The project will result in about 120 new combined jobs for both the dental hygiene school and claims processing center. EDCO began working on this project in 2005 and the company is expected to occupy the facility in November 2008, in advance of the facility’s first class of hygienists who begin an 18-month program in January 2009.
Another large scale, Class A office space is quickly taking shape – the new 125,000 SF Les Schwab headquarters in Bend. The company expects to occupy the facility in November of this year, and will initially have about 300 employees there. All warehouse and distribution functions which employ more than 700 people in Prineville will remain in that community. EDCO has assisted in this retention/expansion project also since 2005 with help site selection and incentives.
GL Suite, a Bend-based software developer has also been re-evaluating its plans to build a new office and headquarters in Bend due to high construction costs. The company is now investigating options for existing office buildings that are available for sale. GL Suite continues to grow rapidly, and expects to nearly double its employment within the next year to 18 months.
Bend-based G5 Search Marketing continues to grow its operations and team – adding a new employee each of the past 12 months to its current 25. The trend is expected to continue, as this software-based marketing company expands its reach and develops new markets. The company is looking for a new home -- an office building to accommodate current and future growth.
Davenport Power continues its geothermal exploration near the Newberry Crater in southern Deschutes County with hopes of launching a new electric power generation plant. The company has already invested three years and several million dollars to get to this stage, which currently is development of several deep (8,000 ft!) test wells. The generation project, which if built, would represent a capital investment of at least $150 million and creation of 30 new jobs.
EDCO continues to respond to new inquiries from the Oregon Economic & Community Development Dept. for companies in the alternative/renewable energy industry. EDCO has prepared four detailed proposals in recent months expansion/relocation projects in the sector. Most of these projects, if sited here, would bring a significant number of well-paying jobs.
PV Powered, the leading manufacturer of grid-tied solar power inverters in the U.S., has successfully negotiated lease terms for a new home for its growing operations. The former Oregon Woodworking facility in Bend, which closed about a year ago, is getting a makeover into PV Powered’s combined headquarters, R & D, production and warehousing operation to serve customers across the world. The roughly 100,000 SF building is a considerable size upgrade to the company’s current operations, which have been shoehorned into three different buildings on the edge of Bend’s Old Mill District. Before year’s end, the company will erect a large commercial solar power array on the building’s roof, and ready other parts of the facility for its 50+ workforce, which is expected to double within 12 months.
Last project update we referred to a Bend-based specialty manufacturer that looks to double its current operation in size and employees. The company, Suterra, develops and manufactures bio-friendly, pheromone-based pest control products. To expand, they need to build or occupy 3 to 5 acres of light industrial space and prefer a Bend location; capital investment is in the $20 million range. A site north of the new Les Schwab headquarters in Juniper Ridge has been identified as a strong possibility, subject to timing of entitlements, infrastructure development and rezoning of the property. EDCO is assisting with site location help and possible state incentives for the project.
Bend-based Outback Manufacturing, a precision manufacturer of machined parts for the aerospace, medical, high tech, and robotics industries, has also focused its interest on Juniper Ridge and has signed a letter of intent to pursue a location there. Outback looks to add 5 new employees by the end of the year. EDCO has assisted the company with site location decisions.
Precise Flight, Central Oregon’s first aerospace company, is in the midst of a major expansion. The company has been developing a new line of products used by both the commercial and general aviation sectors that is fueling the growth. Precise Flight expects to need an additional 20,000-30,000 SF to fulfill orders – preferably at the Bend Airport where it has operated since 1980. Employment at the company, which is currently 38, could grow by 50% within the next few years.
A California-based internet technology company with nearly 60 employees has expressed interest in relocating its management team of 8 or 9 employees to either Bend or Portland. EDCO has provided detailed comparisons of leasing and business operational costs as well as quality of life considerations between the two cities.
A Crook County equipment manufacturer, currently based in Powell Butte, has expressed interest in moving to Prineville to take advantage of the enterprise-zone benefits. The company looks to add 3-4 new employees with the relocation.
Dubbed Project Empire, a large manufacturing operation supported by a Pacific Northwest investor, which would employ up to 600 individuals within 5 years, is also evaluating a Prineville enterprise-zone location. The company is also looking at its options in Texas. EDCO staff is working through transportation issues with the company, ODOT, and the City of Prineville. Last week the City of Prineville agreed to reduce SDCs associated with the project to bring them into line with other Oregon cities of similar size and to be consistent with other Central Oregon cities.
EDCO anticipates specialty high-end guitar builder Breedlove will move into its new $3.6 million 2,305 SF facility in Bend’s Northwest Crossing community within the next two weeks. The new production facility and headquarters will enable the company to continue its rapid growth and market share gains in the stringed instrument category. EDCO has provided the company with access to capital, real estate, and incentives. The project would create 15 additional jobs over the next three years. Longer term, Breedlove would like to grow from their current team of about 35 to 60.
Also relocating from cramped quarters is Bend-based AmeriTech Machine Manufacturing, a designer and manufacturer of semi-custom complex equipment for the steel processing industry sold worldwide. Based in an Old Mill location for the last seven years, AmeriTech will occupy its new 25,000 SF Redmond facility by the end of August, where they will have room to lay out an expanded production process and store large projects. The company expects to nearly double its employment base by the end of the year. EDCO assisted AmeriTech with enterprise zone benefits, site selection, and permitting.
Feedback
Have a story idea? Or something you’d like covered in the eCon Update? We appreciate your comments; email Ruth Lindley.
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