Quick Reference 1 Top Employers & Industries 14 Telecommunications 3 Wage Information 14 Services 4 Industry Mix 15 Transportation 5 7 7 9 10 17 17 18 18 19 Business Costs Employment Trends Housing / Real Estate Valuations Population 11 Education 13 Utilities Travel Distances, Commuting Topography & Climate Top 10 Taxpayers Business Resources Entrepreneurial Landscape 20 About EDCO 2015 CENTRAL OREGON PROFILE Economic Development for Central Oregon 705 SW Bonnett Way, Ste. #1000 Bend, OR. 97702. www.edcoinfo.com 541.388.3236 | 800.342.4135 WELCOME TO CENTRAL OREGON! The region encompasses dramatic snow-capped mountain ranges to high desert plateaus within the counties of Crook, Deschutes, and Jefferson. Central Oregon has led the state’s population growth over the last two decades; in fact, Deschutes County is among the fastest growing areas of the country over the past year. A lesser known fact is that our region has also topped the state in job growth over the past year and over the past ten years, creating a region that's characterized by dynamic small businesses and entrepreneurial activity. The region boasts strong clusters in high technology (software, hardware and energy), advanced manufacturing, biosciences, renewable energy, brewing & distilling, and recreation equipment. For most new residents, Central Oregon is a lifestyle choice, offering a friendly environment, year round recreation options, and world class amenities—all with the benefits of a hassle-free, small town feel. From a ranch in Prineville to an upscale urban condo in Bend, and the range of options in between, the region presents a rare diversity of places to live— all with an easy commute to work. For a relocating business, Central Oregon has a reputation for welcoming new companies. The region has some of the lowest operating costs in the Pacific Northwest, without sacrifice in human talent, quality health care, transportation or telecommunications infrastructure. What sets Central Oregon apart from other lifestyle cities like Aspen/Vail, CO; Sun Valley, ID; Jackson Hole, WY or Lake Tahoe is that it’s filled with middle-class working people who are not escaping from the rest of the world, but building and living their dreams here. Dreams of a quality education for their children. Dreams of launching their own business. Dreams of short commutes and breathtaking landscapes. Dreams of interesting, challenging work without the big-city hassle. TOP EMPLOYERS & INDUSTRIES According to the Oregon Employment Department, over 75% of Oregon firms have nine or fewer employees and the average firm employs 15 people. Recent research released by Dun & Bradstreet and American Express said that 99.1% of businesses in Oregon were less than $10 million in revenues. To an even greater extent than the state, Central Oregon's business environment is typified by innovative, small companies, producing niche-market products and services. Still, a number of large employers operate successfully here, tapping into Central Oregon’s ever-expanding workforce, overall low cost of doing business and business-friendly local governments. Year over year, the region’s Top 50 Private Employers collectively added 1,100 jobs, and thereby employed nearly 20,000 Central Oregonians. Large employers include some distinct groups including: Advanced Manufacturing Bioscience (pharmaceuticals, medical device) Brewing & Distilling (craft beer, cider, spirits, tea) Building Products (doors, windows, molding, furniture) High Technology (electronics, software, data centers) Outdoor Gear & Apparel Healthcare is led by St. Charles Medical Center, the largest private employer in the region. St. Charles owns and operates hospitals in Bend, Redmond Madras, and Prineville. Additionally, Bend Memorial Clinic is the largest of nearly 100 private clinics and practices in the area. Overall, the health care sector employs over 10,000 Central Oregonians. Headquarter operations play a prominent role among top employers and include Keith Manufacturing, Les Schwab Tires, Bank of the Cascades, Deschutes Brewery, 10 Barrel Brewing and Administrative/ call centers including Consumer Cellular, IBEX Global and Navis are also among the largest private employers in the tri-county area Employment in tourism and hospitality reflects the importance of this sector to the region. Central Oregon has the largest concentration of destination resorts in the Pacific Northwest and includes Riverhouse convention center, Sunriver Resort, Mt. Bachelor, Eagle Crest (Resort Acquisition Partners), Kah Nee Ta Resort, and Indian Head Casino. Page 1 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO Central Oregon’s Top 50 Private Employers 2014 Rank 2015 Rank 1 3 2 5 4 9 8 6 10 14 7 11 12 13 15 16 18 23 17 20 22 24 26 19 29 21 27 30 28 34 38 25 32 31 33 39 35 36 41 49 37 39 40 N/A 45 47 50 41 48 N/A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 31 33 33 35 35 37 37 39 40 41 42 43 43 45 46 47 48 49 50 Employer 2013 Employees 2014 2015 St. Charles Medical Center regionwide Sunriver Resort Les Schwab regionwide (HQ & CO stores) Bright Wood Corporation regionwide Mt. Bachelor McDonald's regionwide Bend Memorial Clinic regionwide IBEX Safeway regionwide Consumer Cellular WalMart regionwide Fred Meyer regionwide Jeld Wen Windows and Doors Northview Hotel Group Opportunity Foundation Black Butte Ranch Central Oregon Trucking PCC Schlosser Deschutes Brewery Costco Bi-Mart regionwide Bend Research Lowe's regionwide BendBroadband (incl. Zolo Media & The Vault) Mosaic Medical Bank of the Cascades regionwide Home Depot regionwide Contact Industries Albertson's regionwide The Center (Ortho/Neuro Care & Research) Navis Athletic Club of Bend The Riverhouse Kah Nee Ta Resort Neighbor Impact regionwide G5 Keith Manufacturing Co. The Bulletin MODA Touchmark at Mt. Bachelor Village LLC Brasada Ranch Nosler Indian Head Casino Epic Air Medline Renewal Hooker Creek Companies Ray's Food Place regionwide US Bank regionwide Praxis Medical Group (formerly High Lakes) Rebound Physical Therapy 2,848 900 N/A 647 743 518 609 650 557 202 787 510 460 400 406 121 260 242 287 283 238 254 219 285 156 249 226 180 211 193 179 250 193 126 193 121 170 190 165 94 111 N/A 166 N/A 130 150 253 N/A 80 N/A 2,740 900 905 746 756 620 639 700 584 402 686 538 480 450 384 360 286 243 290 280 246 242 229 285 218 259 225 215 218 196 182 240 200 200 196 170 190 190 160 135 187 170 168 N/A 157 150 135 164 101 N/A 2,830 900 880 870 775 668 652 595 590 585 574 528 460 450 392 360 312 305 295 285 265 264 262 261 243 237 235 225 216 213 211 200 200 200 196 192 190 190 180 178 172 170 168 160 153 150 143 126 119 110 Page 2 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO WAGES INFORMATION FOR SELECT OCCUPATIONS Below are average hourly wages in Oregon, Washington, and California. Central Oregon wages are typically below those of Oregon, often 10 to 20%. Wages in Washington are typically higher than Oregon while California wages routinely run at least 20% higher than those in Oregon: Occupation Wage Comparison for Selected Occupations (annual average, $ per hour) OR Central OR CA WA Accountant/Auditor 31.05 30.89 37.50 33.26 Architect, except Landscape & Naval 35.01 37.38 45.31 36.02 Carpenter 21.25 21.90 26.88 24.04 Chef & Head Cook 18.80 18.95 23.03 22.86 Clinical, Counseling, and School Psychologist 34.63 29.62 39.13 33.29 Computer-Controlled Machine Tool Operator 19.10 18.92 19.09 33.16 Computer Programmer 35.39 38.70 43.51 54.15 Computer User Support Specialist 22.76 23.20 28.25 27.58 Computer Systems Analyst 40.33 34.96 44.95 45.93 Customer Service Representative 16.75 14.35 19.14 17.70 Dental Hygienist 38.83 36.50 45.68 45.04 Electrician 33.24 26.77 30.97 30.48 Electrical Engineer 40.55 28.56 54.53 47.80 Financial Manager 51.61 53.54 67.73 56.45 Food Service Manager 22.62 22.14 25.40 24.67 General & Operations Manager 46.94 41.29 60.66 58.61 Graphic Designer 22.90 20.68 27.76 26.63 Industrial Machinery Mechanic 26.32 25.32 27.53 27.71 Industrial Production Manager 44.08 40.31 52.44 49.34 Landscape Architect 31.58 n/a 39.54 30.83 Marketing Manager 47.58 34.88 74.20 65.64 Mechanical Engineer 40.13 33.37 47.58 44.21 Medical Transcriptionist 18.51 18.74 21.48 17.69 Middle School Teacher, except Special Ed 27.20 24.67 32.78 29.37 Multimedia Artist & Animator 30.18 n/a 42.88 37.40 Network and Computer Systems Administrator 33.18 32.66 41.62 39.12 Paralegal 27.61 24.23 29.22 26.12 Physical Therapist 38.42 35.48 44.42 40.21 Police/Sheriff Patrol Officer 30.04 30.10 41.69 34.22 Receptionist 13.43 12.79 14.57 14.85 Registered Nurse 39.17 39.13 47.17 37.17 Secretary/Administrative Assistant, except Legal, Medical, & Executive 16.74 15.26 18.62 18.45 Software Developer, Applications 42.79 36.08 54.56 54.18 Software Developer, Systems Software 48.42 n/a 57.97 53.32 Supervisor, Administrative & Office Workers 24.44 23.78 28.26 27.15 Supervisor, Retail Sales Workers 18.58 19.39 21.48 21.87 Truck Driver, Heavy & Tractor-Trailer 19.14 19.06 20.78 20.95 Urban/Regional Planner 37.53 41.39 39.36 35.70 Sources: Oregon Employment Department, Washington State Employment Security Department, and California Employment Development Department. The data used to create these estimates came from the Occupational Employment Survey. Data is for Q1 2014 – the most recent data available. Page 3 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO Covered employment & payroll Below are the employment by sector, payroll, and average annual pay in the tri-county region. Average annual pay is the total of all covered wages paid during the year divided by the monthly average number of covered jobs during the year. Covered employment refers to jobs that are eligible for unemployment insurance, so it is a good barometer of wage and sector trends. Note that while most employees are covered, notable exceptions include the self-employed, those who work solely on commission, and some agricultural workers. Deschutes County Industry Total private coverage Em ployees 58,758 $ 2,224,607,870 Nat. resources & mining Crook County Payroll Avg. Pay Em ployees $ 37,860 Jefferson County Payroll Avg. Pay Em ployees 4,612 $ 187,137,202 $ 40,576 Central Oregon Payroll Avg. Pay Em ployees 3,920 $ 125,377,351 $ 31,984 Payroll Avg. Pay 67,290 $ 2,537,122,423 $37,704.30 479 20,471,603 42,738 213 7,589,601 35,631 455 14,267,978 31,358 1,147 42,329,182 36,904 Construction 4,311 182,547,329 42,344 244 11,321,832 46,400 68 2,177,329 32,019 4,623 196,046,490 42,407 Manufacturing 4,475 188,139,276 42,042 786 29,577,894 37,630 1,007 40,079,066 39,800 6,268 257,796,236 41,129 Wholesale trade 1,734 91,051,334 52,509 653 40,796,774 62,475 146 6,029,845 41,300 2,533 137,877,953 54,433 Retail trade 9,823 274,714,335 27,966 517 12,228,500 23,652 545 12,466,882 22,875 10,885 299,409,717 27,507 Transp., w arehouse & util. 1,456 71,044,832 48,794 315 14,441,810 45,847 117 7,157,895 61,178 1,888 92,644,537 49,070 Information 1,470 78,194,207 53,193 75 16,590,718 221,209 24 654,513 27,271 1,569 95,439,438 60,828 Financial activities 3,189 165,453,962 51,882 115 4,101,448 35,664 107 3,969,933 37,102 3,411 173,525,343 50,872 Professional & bus. svcs 7,701 323,163,536 41,963 294 10,463,016 35,588 145 4,824,229 33,270 8,140 338,450,781 41,579 Education & health svcs 10,956 554,999,782 50,657 573 23,610,022 41,204 530 21,496,450 40,559 12,059 600,106,254 49,764 Leisure and hospitality 10,593 200,013,067 18,881 579 10,770,054 18,601 557 8,361,929 15,012 11,729 219,145,050 18,684 Other services 2,565 74,651,441 29,103 242 5,645,533 23,328 214 3,891,302 18,183 3,021 84,188,276 27,868 Total all government 8,690 408,577,230 47,016 1,247 56,445,038 45,264 2,442 96,960,309 39,705 12,379 561,982,577 45,398 67,448 $2,633,185,100 $39,040 5,860 $243,582,240 $41,566 6,362 $222,337,660 $34,947 79,670 $3,099,105,000 $38,899 Total all ow nerships INDUSTRY MIX Central Oregon has an ever-more diverse mix of industries that create the employment foundation for the regional economy. For example, in 2007, construction accounted for more than 11% of total payroll, while today it is much closer to national averages. A large slice of the overall pie, government, has seen its share of payroll disperse to other sectors such as education and health services (the fastest growing sector). Information, which includes software, IT services, and data centers, has grown by 30% over the past decade. Tourism (leisure and hospitality) has also seen gains in the past 10 years. Page 4 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO BUSINESS COSTS Oregon has achieved national status for being a cost competitive location for business. The table below compares the cost of doing business in Oregon, Washington, and California. Major contributing factors to the Oregon advantage are no sales tax, no inventory tax, an affordable property tax system, and affordable labor costs. Average industrial, commercial, and residential power costs are nearly half those in California and on average 25% below national averages. BUSINESS COST COMPARISON – U.S. West Coast Business Factor Oregon California Washington Average Industrial Electricity Rate (Jan. 2015; ¢/kWh) 5.78¢ 10.74¢ 4.21¢ Average Industrial Rate for Natural Gas (Jan. 2015, $/kcf) $6.79 $7.68 $9.14 Average Annual Wage for Production Worker (Q1, 2014) $35,820 $34,580 $41,020 Base Unemployment Insurance, range of rates (As of July 1, 2014) State Unemployment Insurance Tax Rates (As of July 1, 2014) 1.8 – 5.4% (base: $35,000) 2.2% 5.4% 1.5 – 6.2% (base: $7,000) 1.3% 5.4% 0.17 – 5.84% (base: $41,300) .0% 5.4% $5,449 $5,581 $5,690 $1.37 $3.48 $2.00 1.0% ($0) 13.3% ($1,000,000) None 8.84% None Sales or Use Taxes on Construction Costs (FY 2013) 5.0% ($0) 9.9% ($125,000) 6.6% ($0) 7.6% (>$1M) None None None None None None 7.5% (Average) 0.91% 8.41% 4.07% 0.484% 6.5% (Average) 2.38% 8.88% 8.87% State Sales Tax Collections Per Capita (July 1, 2014) $0 $889 $1,604 Excise tax Other taxes Total State & Local Tax Burden Per Capita (2011; U.S. Average = $4,217) 30¢ 1.07¢ 31.07¢ $3,861 36¢ 9.39¢ 45.39¢ $5,136 37.5¢ 0.0¢ 37.5¢ $4,366 State Tax Collection Per Capita (2013; U.S. Average = $2,689) Real Estate Transfer Tax $2,340 None $3,490 0.110% $2,692 0.128% Minimum Maximum Average Annual Premium for Employer Sponsored Single Person Health Insurance (2013 data) Workers’ Comp premium index rate (as of Jan 1, 2014) Lowest Highest Lowest Highest State Individual Income Tax Rates (2014) State Corporate Income Tax Rates (As of July 1, 2014) State/local gross receipts, operations-based business tax State Local Combined State & Local Sales Tax Rates (As of July 1, 2014) State Gasoline Tax Rates (cents per gallon) (As of Jan, 2015) 1 State Business Tax Climate Index (2015 Tax Foundation) #12 #48 #11 Sources: Tax Foundation, Oregon Employment Department, Washington State Employment Security Department, and California Employment Development Department, US Energy Information Association, Employer Health Benefits Survey, Premium rate ranking index, Oregon Insur1 ance Division, Washington does not have a corporate income tax but does have a gross receipts tax (Business & Occupancy Tax). While not strictly comparable to corporate income tax rates, it is imposed on revenues, not profits, resulting in noteworthy effective tax rates, particularly for small businesses and startups. Perhaps one of the greatest assets in Oregon is the structure of how corporations are taxed known as the Single Sales Factor. The tax rate on corporate income of firms doing business in the state is the greater of a minimum tax based on relative sales ($150-$100,000, approximately 0.1%) or an income-based levy of 6.6% on amounts up to $10 million and 7.6% above that. Oregon businesses are taxed on a portion of their total income derived from sales within the state. This corporate income tax is considered Singe Sales Factor tax, as it only considers Oregon sales in determining corporate income taxes owed to the state. Other states often include additional assets and payroll, making them "multi-factor" taxes. This tax policy is a major reason why Oregon is home to Intel’s largest global employment (more than 16,000 employees) and capital investment. Single sales factor plays an important role for Nike, Columbia Sportswear, Keen, and other outdoor gear and apparel manufacturers continued growth of headquarters, R & D, and warehouse operations. Page 5 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO The table below compares costs for a manufacturing company with 20 employees and one with 200 employees. This example does not factor or include cost savings offered by incentive programs. Oregon offers more incentive programs to traded-sector businesses (companies that sell product or services outside of the area), than Washington and California combined. Attempting to understand all cost factors in different states and how those impact your specific business can be a daunting task. Some cost factors such as the efficiency and approach of regulatory oversight (i.e. implementation of federal EPA rules) can be dramatically different from state to state but virtually impossible to place a dollar value on for comparison purposes. 20-Employee Firm 200-Employee Firm Cost Factor Oregon California Washington Oregon California Washington Energy costs $149,760 $194,820 $140,015 $149,760 $1,948,200 $1,400,160 Employee gross payroll $903,900 $879,680 $1,007,720 $9,039,000 $8,796,800 $10,077,200 Social insurance $27,669 $29,142 $33,399 $276,694 $291,417 $333,986 Corporate income/other taxes* $2,000 $1,658 $36,300 $59,950 $212,160 $363,000 Annual property tax $125,600 $85,600 $72,000 $1,256,000 $856,000 $720,000 Annual tax on current purchases $0 $33,975 $32,438 $0 $339,750 $324,375 Tax on capital purchases $0 $543,600 $1,305 $0 $5,436,000 $13,050 Total operating costs, initial capital $1,208,929 taxes $1,768,474 $1,323,177 $12,129,244 $17,880,327 Difference from Oregon + $559,545 +$114,248 + $5,751,093 $13,231,771 +1,102,527 *"Other taxes" includes any relevant business taxes that states would apply to the business used in the example, such as gross receipts taxes. Table source: Business Oregon website. . Workers Compensation Insurance th Workers’ compensation costs in Oregon are 8 lowest in the county, highly favorable compared to other states. The “pure premium” is the portion of the premium employers pay insurers to cover anticipated claims costs for job-related injuries and deaths. State officials attribute the decrease to a focus on improving worker safety, getting injured workers treated and back on the job quickly, as well as the initial impact of medical cost control strategies. The “pure premium” rate has either remained the same or decreased for 22 of the past 24 years – making this cost among the lowest in the country for employers. For manufacturers in places like California, the cost savings of worker’s compensation insurance in Oregon can be substantial. Even a company with 50 employees can realize six-figure annual savings on this one cost factor alone. Page 6 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO EMPLOYMENT TRENDS Employment Gains 2004 to 2014 (Covered employees by payroll) Area Bend/Deschutes County MSA Portland MSA Salem MSA Medford (Jackson County) Corvallis (Benton County) Eugene-Springfield (Lane County) Oregon U.S. Average 2004 2014 Gain/Loss % Change 58,428 821,394 146,499 79,350 34,508 139,483 1,594,537 139,240,000 67,448 893,748* 152,192* 79,746 35,107 142,188 1,727,275 146,303,000 9,020 72,354 5,693 396 599 2,705 132,738 7,063,000 15.4% 8.8% 3.8% .49% 1.73% 1.93% 8.3% 5.07% From 2004 to 2014, jobs in the nation grew at an overall rate of 5.07%. Oregon outpaced the nation’s job growth by approximately 30% and Deschutes County grew at three times the national average. It is important to note that the figures on the left include significant job losses during the Great Recession. Over the past decade, almost as many jobs were created in the Bend/Deschutes County MSA (9,020) Source: Oregon Employment Department; QCEW &BCLS CPS.*2014 data not available at time of publication. as four of the other five state MSAs combined (9,393 excluding Portland), which represents a population base that is roughly six times larger. On a percentage basis, Bend/Deschutes County employment grew at rate nearly double that of Oregon overall. UNEMPLOYMENT TRENDS Regarded as a lagging indicator by most economists, this chart provides a five-year perspective on unemployment in the Tri-County area. Since early 2011, unemployment rates have been reduced significantly. As of March 2015, Deschutes County’s unemployment rate of 6.0% is the lowest since December 2007. Crook County’s fell to 8.9%, the lowest rate since June 2008. The unemployment rate dropped to 7.4% in Jefferson County from 9.8% the same time last year, a statistically significant decline. Because of Central Oregon’s sustained strong inmigration, job creation typically lags population growth, a reason why historically, Oregon’s unemployment rate tracks higher than the national rate. HOUSING / REAL ESTATE TRENDS Average Monthly Rent The Central Oregon rental market continues to face heightened demand in the midst of constrained supply. According to the Central Oregon Rental Owners Association, curAverage Monthly Rent for a 3 Bedroom House ($) rent vacancy rates have shrunk to 1.04% as of Area 2009 2010 2011 2012 2013 2014 March 2015), down from 12.4% in 2009. Bend Redmond/Terrebonne 1,003 969 1,012 1,231 1,110 1,221 884 863 911 975 952 1,014 The high demand has exerted pressure on prices Madras/Culver 834 849 817 800 765 859 and a growing interest in multi-family residential Prineville 790 809 847 835 955 895 construction, particularly in Bend and Redmond. La Pine 890 905 861 889 838 880 In the last year, two and three bedroom rental Sunriver 1,000 991 896 1,086 1,066 1,180 houses increased more on a percentage basis than apartments and duplexes. 2014 average rent Sisters n/a 913 850 922 875 898 prices for a 3 bedroom home were up slightly Source: Central Oregon Rental Owners Association (COROA); March 2015 from 2013 in nearly all Central Oregon communities. Our expectation is that 2015 annual rental figures will be up sharply in Bend, Redmond, Prineville, and Sisters amidst strong inmigration and near record low vacancies. Page 7 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO Home Prices As with much of the rest of the country, residential property prices peaked to alltime highs in 2007 and declined in value by as much 40% in the following years. Prices are now rebounding substantially - both median and average home prices increased in 2014 across the region, but are still below 2005 levels. It is noteworthy to mention that prices in Sunriver and Sisters include a much higher percentage of high end homes and homes on acreage than comparable prices in Bend or Redmond. Home Prices of Existing Single Family Homes (residential, less than one acre, $) Median Sales Price 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Crook County Bend 149,375 279,900 195,500 351,978 199,450 345,000 177,500 289,450 112,000 212,000 91,100 191,750 79,900 190,000 87,000 220,395 126,725 269,000 133,700 Redmond 198,818 262,749 250,000 216,000 147,500 123,450 116,000 132,000 175,000 196,275 La Pine 148,450 183,500 215,000 160,000 109,000 99,900 88,200 94,950 133,000 150,900 Sisters 394,250 460,000 415,000 367,450 286,250 223,750 201,000 245,000 300,000 Sunriver 462,500 575,000 548,547 555,738 402,000 417,500 375,000 350,000 364,000 260,000 369,000 Jefferson County 133,500 165,080 177,950 139,950 89,900 69,950 69,900 71,550 84,950 109,950 U.S. 219,000 221,900 217,900 196,600 172,100 173,200 166,200 176,800 197,100 208,300 289,950 Average Sales Price Crook County 154,906 212,173 224,151 206,874 145,040 120,537 94,540 113,911 148,124 163,587 Bend 334,570 406,122 426,044 353,142 266,319 245,069 238,186 263,556 317,735 344,694 Redmond 226,238 292,268 286,543 245,204 170,739 142,402 137,214 148,086 197,015 217,263 La Pine Sisters 163,971 449,979 202,331 514,259 237,665 526,626 180,153 437,636 126,606 372,483 110,632 295,488 107,238 248,019 100,906 294,247 146,802 317,316 164,295 Sunriver 501,764 627,345 637,734 628,979 458,614 455,550 398,948 381,530 408,326 409,227 Jefferson County 131,493 170,228 187,367 144,146 145,040 78,376 77,010 74,939 91,748 114,669 U.S. 267,400 268,200 266,000 242,700 216,900 220,000 214,300 225,500 NA NA 290,327 Sources: Central Oregon Association of Realtors (COAR), National Association of Realtors Commercial and Industrial Real Estate Market Trends Central Oregon’s commercial real estate market is marked by substantial positive absorption trends. In their quarterly POINTS report, Compass Commercial Real Estate observes that this past year marked the beginning of the end of the recession for the office market. Retail and office sectors are experiencing strong growth and low vacancy rates. Absorption of Bend’s 2.53 million square feet of office space has picked up, with the current vacancy rate at 10.5%. Fratzke Commercial Real Estate noted that building space in Bend, often driven by high-demand areas such as the Old Mill and Downtown Districts have very low vacancy rates which are currently around 6.6% for retail space. Page 8 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO Activity in the industrial market (approximately 5.59 million square feet in Bend and Redmond) has been strong. Since the end of 2013, net absorption increased from 6,998 square feet to 160,729 square feet by the end of 2014. Bend’s 6.7% vacancy rate is at its lowest since Q3 2008; Redmond’s 22.5% rate represents three consecutive quarters of positive absorption. Building activity is steadily increasing throughout Central Oregon. As a result, the number of building permits issued for new commercial construction, remodels, additions, and repurposing is increasing rapidly, construction prices are on the increase and rents, particularly for newer properties, are climbing. Land Prices, Lease Rates & Construction Costs Business Costs Across the Region Land costs in the re1 (all costs expressed as costs per square foot ) gion are rebounding Deschutes County Crook Jefferson after seeing as much Category County County Bend Redmond Sisters La Pine as 50% value reducIndustrial land costs $5.00-$15.00 $2.50-$5.00 $2.55-$6.00 $1.00-$2.00 $1.00-$3.00 $1.00-$2.50 2 tions resulting from Lease rates the Great Recession. Industrial $0.45-$0.75 $0.40-$0.65 $0.45-$0.60 $0.15-$0.25 $0.20-$0.35 $0.20-$0.45 Costs do vary by Commercial $1.00-$1.70 $0.75-$1.40 $0.85-$1.50 $0.80-$1.00 $0.40-$0.90 $0.45-$0.90 community, with Retail $0.50-$2.50 $0.40-$1.50 $0.85-$1.50 $.50-$1.00 $0.70-$1.00 $0.65-$1.00 Crook and Jefferson Construction $60-$100 $60-$100 $60-$100 $60-$100 $60-$100 $60-$100 Source: EDCO research April 2015. The table is meant to represent a range of costs and may be negotiable please contact EDCO with Counties generally your specific project requirements. 1Assumes base rent excluding NNN costs having lower land and lease costs. In Deschutes County, Redmond offers lower land and lease costs than neighboring Bend, Sisters is comparable to Bend, while La Pine costs are comparable with Crook and Jefferson Counties. Several years of strong demand for retail, office, and light industrial space are pushing vacancies down and rents higher in 2015. For the first time in seven years, EDCO expects to see a number of new industrial and light industrial construction projects in the year and possible office projects in 20015 and 2016. FINANCIAL SERVICES Central Oregon is home to 16 financial institutions which collectively have 64 branches in the region. In addition to these banks and credit unions there are a number of alternative financial resources that can be found on EDCO’s website under incentives. Alternative financing includes a number of organizations with local offices that work closely with banks and credit unions including Business Oregon, Craft3 and Oregon Certified Business Development Organization. Banks, Savings Associations, and Credit Unions in Central Oregon (as of May 2015) Bank of America Bank of the Cascades Columbia Bank High Desert Bank JPMorgan Chase Bank Mid Oregon Credit Union Northwest Community Credit Union Northwest Farm Credit Services OnPoint Community Credit Union Oregonians Credit Union SELCO Community Credit Union Summit Bank Union Mid Oregon Credit Union U.S. Bank Umpqua Bank Washington Federal Wells Fargo Bank Source: FDIC, EDCO Business Research Financial Institution Deposits in Central Oregon (in millions) County Crook County Deschutes County Jefferson County Tri-County Total 2001 2006 $123 $1,164 $92 $1,379 $261 $2,294 $123 $2,678 2013 2014 $205 $2,450 $146 $2,801 $237 $2,682 $143 $3,063 % Growth 2001-14 92.68% 130.41% 55.43% 122.17% The total FDIC-insured deposit base as of June 30, 2014 (the most current data available) was $3.06 billion. Reflecting higher than average deposit wealth, Central Oregon also supports a significant number of financial planning and investment firms. Many of these firms also provide wealth management for clients nationwide. Source: FDIC Summary of Deposits as of 6/30 for each year. Page 9 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO POPULATION Population in Central Oregon Area Oregon Crook County Prineville Unincorporated Deschutes County Bend La Pine Redmond Sisters Unincorporated Jefferson County Culver Madras Metolius Unincorporated Tri-County Total 1990 2000 2,842,321 3,421,399 14,111 19,184 5,355 7,358 8,756 11,826 74,958 115,367 20,447 52,029 Not yet incorporated 7,165 13,481 708 959 46,638 48,898 13,676 19,009 570 802 3,443 5,078 450 729 9,213 12,400 102,745 153,560 2010 3,837,300 21,020 9,260 11,760 157,905 76,740 1,660 26,225 2,040 51,240 21,750 1,365 6,050 710 13,625 200,675 2013 3,919,020 20,690 9,270 11,420 162,525 78,280 1,670 26,590 2,115 53,570 22,040 1,370 6,255 705 13,710 205,225 2014 3,962,710 20,780 9,385 11,395 166,400 79,985 1,670 26,770 2,190 55,785 22,205 1,380 6,260 700 13,865 209,385 Oregon’s population growth of 1.1% from 2013 to 2014 was again dominated by net migration (movers-in outpaced movers-out) which accounted for 74% of the increase. Natural births over deaths accounted for only 26%. Similar, but even more dramatic inmigration trends prevail in the Tri-County area. Deschutes County experienced the largest year-over-year percentage gain (2.4%) for all 36 Oregon counties and is the primary driver behind the addition of more than 3,000 new residents annually to the region’s population. Deschutes County grew dramatically between the 1990 and 2000 Census and even more so th between 2000 and 2010. It was the 7 fastest growing county in the U.S. last year. Bend more than doubled in size between 1990 and 2000 and grew by 47% between 2000 and Source: Population Research Center, PSU. 1990, 2000 & 2010 Census numbers are for 2010. While growth flattened between 2010 April 1 of that year, 2014 data is for July 1, 2014. and 2012, signs over the past 18 months point to a pickup of in-migration and business activity across the region. Since 2010, Crook County has grown at a very slow pace after dramatic growth between 1990 and 2010. Still, over the past dozen years, Prineville’s population has expanded by 26%. At 15.9% growth since 2000, Jefferson County has grown at a steady rate that exceeds that of Oregon and the nation. In March 2015, Portland State University (PSU)’s Oregon Population Forecast Program released a population forecast for the tri-county of an estimated 416,764 people by 2065 – the first of its kind in many years. Population Projections 2015-2065 Area Tri-County Total Crook County Prineville UGB Outside UGB Deschutes County Bend UGB La Pine UGB Sisters UGB Redmond Outside UGBs Jefferson County Madras 2015 214,547 21,135 11,256 9,879 170,606 85,737 1,687 2,315 27,715 53,151 22,806 7,484 2025 258,899 22,404 11,935 10,470 210,826 109,546 2,263 3,431 33,282 62,305 25,669 8,700 2035 300,926 23,916 12,845 11,071 249,037 132,209 3,014 4,375 39,812 69,627 27,973 9,815 2045 340,739 24,962 13,472 11,489 285,908 154,719 3,872 5,320 47,167 74,830 29,869 10,867 2055 379,237 25,457 13,593 11,864 322,045 176,003 4,816 6,266 55,373 79,587 31,735 11,832 2065 416,764 25,640 13,383 12,257 357,345 194,793 5.836 7,212 64,785 84,719 33,779 12,749 Deschutes County, the fastest growing county in the state, will be home to about 357,345 people in 2065, with 194,793 of them in greater Bend, increasing the city by an estimated 127% over today’s population. The population in Jefferson County in 2065 will reach an esSource: PSU Oregon Population Forecast Program, Preliminary Forecasts, March 2015. timated 33,779, 48% over today’s population. By 2065, an expected 25,640 will call Crook County home, a 21% increase over 2015. Overall, population forecasters expect the region to continue to be a very dynamic part of the state and country. Page 10 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO EDUCATION Public Schools 2014-2015 Public School Enrollment Breakdown School District Students Schools Website Crook County Crook SD Deschutes County Bend-La Pine SD Redmond SD Sisters SD Jefferson County Jefferson SD 509J Culver SD Tri-County Total 3,303 12 crookcounty.k12.or.us 17,163 7,329 1,107 30 13 3 bend.k12.or.us 2,905 695 32,461 7 3 72 Jcsd.k12.or.us U U redmond.k12.or.us U sisters.k12.or.us Central Oregon schools in Deschutes, Crook, and Jefferson County School Districts serve an area greater than 7,800 square miles, include urban centers such as Bend and Redmond along with smaller towns and rural areas. Over 32,000 students attend 72 schools. Tri-County districts operate 30 elementary schools, 13 middle schools, and 18 high schools, as well as a diverse array of charter and community schools. Of the area’s teachers, nearly 99% meet Highly Qualified standards and over 65% hold a Master’s Degree or higher. U culver.k12.or.us U Source: Oregon Department of Education; local school districts The largest school district is Bend-La Pine with over 17,000 students enrolled and more than 1,750 staff members. Its attendance area spans more than 1,600 square miles - the seventh largest in the state. In the 2013-2014 State School Report Card, 86% of our schools in the Bend-La Pine received overall ratings of 4 or 5, with 25% of our schools rated in the top 10 of Oregon schools. Since 2000, students in the Bend-La Pine School District have continually scored higher on SAT tests than their peers, 95 points higher than their peers nationwide. More than 70% of Bend students continue onto college. Private Schools 2014 Average SAT Scores Bend-La Pine Washington Oregon California U.S. Average Nevada 1615 1519 1544 1504 1497 1454 Private schools in Central Oregon have developed a reputation for high academic achievement and a focus on giving personalized attention to each individual student. There are 29 Sources: College Board & Bend-La Pine private schools in Central Oregon; twelve of these are faith-based and represent a variety School District of Catholic and Protestant denominations. In addition, two institutions – J Bar J and New Leaf Academy offer therapeutic education services to at risk youth in need of support. While a diverse range of educational methods and services are present in private schools throughout K-12 District Enrollment for Oregon’s Metro Central Oregon, several institutions stand out for reputation and District 2004 2015 % large student population. Among these select private schools Change Bend-La Pine 1 13,940 17,122 22.8 are Trinity Lutheran School, Seven Peaks, and Cascades Academy Redmond 2J 6,159 7,329 19 in Bend as well as Central Christian School in Redmond. Hillsboro 1J Salem-Keizer 24J Medford 549C N. Clackamas 12 Statewide Average Eugene 4J Corvallis 509J Portland 1J 18,951 37,877 12,853 16,170 551,372 18,476 7,063 48,326 20,884 40,698 13,628 17,130 570,857 17,012 6,643 45,998 10.2 7.5 6 5.9 3.5 -7.9 -5.9 -4.8 Demand for Higher Education The populace of Central Oregon has a strong interest in pursuing higher education and improving their vocational skills. The chart to the right shows enrollment for Central Oregon’s post-secondary education institutions over the past twelve years. The last six years of demand for higher education have been driven by several forces: Central Oregon’s growing population base, a recovSource: Oregon Department of Education, Fall Membership Report ’14-‘15 ery from the national economic recession, and job training and re-training. Additionally, OSU Cascades Campus is gaining in reputation, attracting more students, and expanding its program offerings. EDCO works in partnership with Central Oregon Community College (COCC) and OSU-Cascades to ensure that program offerings align with business needs. Both institutions have top leaders that serve as Directors on EDCO’s Board. Page 11 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO Central Oregon Community College (COCC) Central Oregon Community College operates campuses in Bend, Redmond, Madras, and Prineville. Founded in 1949, COCC (www.cocc.edu) is Oregon’s first and consequently oldest community college. The College offers transfer/lower division programs, mirroring the first two years of a university education at a fraction of the cost, plus career and technical education programs to move students into local industry jobs. The COCC District covers a 10,000-square-mile area that encompasses all of Crook, Deschutes, and Jefferson counties, the southern part of Wasco, and the northern portions of Klamath and Lake Counties. A sevenmember board of directors governs the College, with members of that board elected from geographic zones in the District. The 200-acre Bend campus includes 26 buildings with a total of 575,000 square feet under roof. The newest buildings are the Jungers Culinary Center, funded primarily by private donations and opened in 2011, and the Health Careers Center and Science Center, funded by a voter-approved bond measure, both opened in fall 2012. The Small Business Development Center (SBDC) operated by COCC provides active support for Central Oregon’s small businesses. SBDC provides programs such as counseling and market research assistance for entrepreneurs at the earliest stages of development. COCC’s Business and Employee Development department delivers industry-specific courses and workshops tailored to business and industry’s changing needs. The College also offers a wide range of continuing education for personal and professional development. The COCC Redmond Campus sits on 25-acres near the Redmond Airport and includes four buildings to serve students with a variety of career programs, educational opportunities, and transfer eligible classes. This past year, approximately 2,300 students enrolled in one or more credit classes in Redmond. In addition to the wide range of services and college courses offered to students, COCC’s Redmond Campus is home to the region’s Manufacturing and Applied Technology Center, a 26,000-square-foot technical training facility with certificate and degree programs readying students for jobs in the manufacturing field. The COCC regional Technology Education Center offers classes for Central Oregon’s business and workforce population at the Redmond Campus. This 34,000-square-foot facility, planned and developed with industry participation, located on the corner of Veterans Way and Salmon Drive, is home to the Center for Entrepreneurial Excellence and Development (CEED) and courses and programs in Non-Destructive Testing and Inspection, Digital Arts and Media and Flexible Technology. For more information visit www.cocc.edu/redmond, or call 541-504-2900. New COCC Technology Education Center in Redmond Enrollment at COCC has increased dramatically over the years, doubling in the last few years as increasing numbers of area residents turned to the College for education and training during the economic downturn. A record number of students have been earning certificates and degrees then transferring to four-year colleges and universities or moving into jobs locally using skills learned in the career and technical education programs. Sources: OSU-Cascades & Central Oregon Community College. Fall term enrollment. Page 12 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO Oregon State University – Cascades Campus Founded in 2001, OSU-Cascades offers upper-level and graduate courses in a unique partnership with Central Oregon Community College in which students typically take lower-division courses at COCC. Currently the two institutions share a beautiful, 200-acre campus on the northwest side of Bend. Students who take advantage of this partnership pay about 25 percent less in tuition and fees than they would at a traditional university. Offering small class sizes, OSUField of Study Degree Program Cascades students may choose from a variety of Accountancy BA/BS graduate, undergraduate, and minor programs American Studies BA/BS (see table at left). Applied Visual Arts BFA Art Art History Biology Business Administration Business & Entrepreneurship Computer Science Counseling Creative Writing Early Childhood Development & Education Energy Systems Engineering English Exercise & Sport Science Human Development & Family Sciences International Studies Liberal Studies Military Science Natural Resources Political Science Psychology Social Science Speech Communication Sustainability Teaching Tourism & Outdoor Leadership Visual Arts BA/BS Minor BS, Minor BA\BS, MBA Minor BS MS MFA Minor BS Minor BS BS BA BA/BS Minor BS, Minor Minor BA/BS, Minor BA/BS Minor BS MAT BS, Minor Minor The Energy Systems Engineering Management program is unique in the state, preparing graduates for a broad range of careers in the energy industry. The Computer Science degree was developed with considerable industry input from many of the region’s nearly fourdozen software firms. OSU-Cascades is in the first phase of constructing a $111 million branch campus in Bend that will accommodate up to 5,000 full-time students. Additional Colleges and Universities Additional accredited academic institutions have a presence in Central Oregon, typically combining evening and occasional weekend classes in conjunction with distance learning. University of Oregon is offering its Executive MBA program locally at its Bend Center (503-276-3622) Eastern Oregon University Division of Distance Education (541385-1137) George Fox University (1-800-631-0921) Linfield College - Central Oregon Center (541-388-2986) Oregon Institute of Technology, Bachelor’s degree in Operations Management, via COCC Average 2014 Electricity Rates (in cents, per kwh) UTILITIES SERVING CENTRAL OREGON Electric Companies Central Oregon providers of electric power are: Pacific Power (PPL), 888-221-7070 Central Electric Cooperative (CEC), 541-548-2144 Midstate Electric Cooperative, 541-536-2126 Service Class Industrial Commercial U.S. 7.01 10.75 CA 10.74 13.98 OR 5.78 8.76 CEC* 5.84 7.26 PPL* MSE* 7.13 6.52 8.78 6.71 Source: U.S. Energy Information Administration 2014 data. *2013 eia data For all sectors, Oregon’s electrical rates are well below the national average. For industrial customers, Central Oregon providers offer rates up to nearly 20% below the U.S. average and nearly 50% below those in neighboring California. The region is primarily served by one of the largest and most robust transmission systems in the country that is operated by the Bonneville Power Administration (BPA) a federal department. BPA is the source of most power generation for Central Electric and Midstate Electric cooperatives, although there are a number of other smaller scale renewable energy production facilities within the region including hydro and solar. Page 13 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO Natural Gas Natural gas is widely available throughout Central Oregon and is supplied by Cascade Natural Gas Corporation (CNGC), 888-522-1130. Headquartered in Kennewick WA., CNGC serves more than 46,000 local industrial, commercial, and residential customers from a regional operations base in Bend. Average 2014 Natural Gas Rates (in cents, per kcf) Service Class Industrial Commercial Delivery Charge/Therm $0.80 $0.26 $0.75 $0.18 $0.72 $0.15 Base Charge Cost Per Therm Commercial Industrial Large Volume–General* $3.00 $12.00 Included CA 7.73 9.08 OR 6.79 9.94 CNGC 7.33 8.01 Source: U.S. Energy Information Administration. Natural Gas Rates User U.S. 5.53 8.90 *Requires specific contract and usage conditions; 1 therm = 1,000 BTUs. Source: www.cngc.com Potential users for the Large Volume–General Service rate should contact EDCO for additional information about their potential usage conditions. Transmission to the region is provided by 36 and 42 inch high capacity lines that run from Canada to southern California. Water System & Rates Cities in the region have invested in the latest technology for the least environmental impact and greatest savings to residents and businesses. Rates vary between communities in the region. Commercial and industrial rates are typically based on meter size; please contact EDCO for specifics. TELECOMMUNICATIONS Built largely over the last decade, Central Oregon’s telecommunications infrastructure is one of the Northwest’s most technologically advanced, meeting requirements for capacity, redundancy, and reliability. High-end data services, typically offered only in large metro areas, include Ethernet access rates up to 10 GB. Several local providers focus purely on the commercial marketplace. Telecom Resources in Central Oregon Carriers & Providers Wireless Internet Cable Resellers & Integrators BendBroadband, BendTel, CenturyLink, FatBeam, Quantum Communications, Integra Telecom Community Broadband, Webformix, Yellowknife Wireless BendBroadband, Chambers Cable, Crestview Cable, DirecTV Integra Telecom (Internet & voice) Services are delivered across a number of access options inTelephone Interconnect ACT Cascades, CascadeTel cluding land line (copper), high speed fiber optics, and wireCellular AT&T, Sprint, T-Mobile, US Cellular, Verizon less (WiFi, WiMax and secure microwave). Many providers offer DSL, ISDN, Frame Relay, ATM, and Metro Ethernet services, along with the traditional high capacity TDM services (T1, T3, OCx). All Local Exchange Carrier central offices use digital electronic switches and the entire system is on a redundant, selfhealing fiber optic network. With a strong history of investing in cutting edge technology early, BendBroadband’s nationally recognized reputation for innovation has made Central Oregon a telecommunications oasis, on par with far larger metro areas. In 2010 BendBroadband won a federal broadband infrastructure grant of $4.4M to deploy fiber infrastructure to Madras, La Pine, Sunriver, and Prineville, providing broadband connectivity to the region’s historically underserved areas. The new 132-mile fiber network is comprised of closed or open rings to points of presence in the four cities, OTN network in the middle mile, and a combination of Optical Metro Ethernet and GePON in the last mile creates a comprehensive, regional 40 Gbps fiber ring. SERVICES Health Services Top quality health care is one of Central Oregon’s crown jewels. With four hospitals and more than 120 employed medical providers, St. Charles Health System is the largest provider of medical care in Central Oregon. St. Charles has pledged to partner with the communities it serves to achieve an ambitious vision: Creating America's healthiest communities, together. St. Charles Health New St. Charles Bend Cancer Center Page 14 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO System began in 2001 as Cascade Health Services when St. Charles Medical Center in Bend merged with Central Oregon District Hospital in Redmond. Today, the organization owns and operates medical centers in Bend, Redmond, Prineville, and Madras. Medical centers in Bend and Redmond are accredited while St. Charles Bend is Oregon's only Level II Trauma Center east of the Cascades. St. Charles Bend is a fully accredited, 261-bed hospital that includes 24-hour emergency care, intensive/cardiac care, physical, respiratory and nutritional therapy, radiology, surgery and an on-campus rehabilitation center. In addition, they offer quality care services including cancer care, cardiology, neurology, orthopedics, stroke care, and weight loss surgery. High-tech leadingedge services are also present in St. Charles’ telemedicine and da Vinci Surgery programs. As a private, nonprofit Oregon corporation, St. Charles is Central Oregon's largest employer with more than 3,500 caregivers in Bend, Madras, Redmond, Prineville, and Sisters combined. More than 350 active medical staff members and approximately 200 visiting medical staff members also make it possible for St. Charles to deliver a wide range of excellent care in a compassionate, healing environment. Media Print: The Bulletin is the dominant daily newspaper while local papers cover Madras, Redmond, Prineville, Sisters, and La Pine. Cascade Business News, a bi-weekly business publication, 1859, Oregon’s first cultural magazine, and The Source, an alternative weekly newspaper, round out the print news options. Radio: Three privately-held companies (Horizon Broadcasting Group, Bend Radio Group, and Combined Communications) collectively own 15 radio stations plus there are two independent operators. Spanish language station, Radio La Bronca, addresses the region’s Latino population. Television: KTVZ TV 21 is the NBC affiliate, KOHD TV 51 is the ABC affiliate, KFXO TV 39 is the Fox affiliate, KBNZ TV 7 is the CBS affiliate, and KOAB TV 11 is the PBS station. BendBroadband airs local origination programming through COTV 11, its community cable channel, which provides in-depth local news, sports and information. TRANSPORTATION Commercial Airport Redmond Municipal Airport (RDM; www.flyrdm.com) provides commercial air service (30 flights daily) to Denver, Los Angeles, Portland, Salt Lake City, San Francisco, and Seattle via four carriers (Alaska, American, Delta, and United). Considerable investment has been made at the airport in recent years including a $40 million terminal expansion, expanded passenger parking (to over 1,000 places) tarmac and runway reconstruction. The Airport is home to the USDA Forest Service Redmond Air Center, Cascade Aviation Management, Life Flight, Butler Aviation, Les Schwab, Bonneville Power, RDD Enterprises, Lancair, and Henderson Aviation. RDM also provides air cargo services and hosts general aviation traffic, including extensive corporate and business travel. Fed Ex, United Parcel Service and the USPS provide air freight and package express services. Flying Time to Markets Served by RDM Flight to: Denver, CO Los Angeles, CA Portland, OR Salt Lake City, UT San Francisco, CA Seattle, WA Flying Time Minutes 2 hours 24 min 2 hours 0 min 0 hours 40 min 1 hour 30 min 2 hours 8 min 1 hour 10 min Source: Redmond Municipal Airport (www.flyrdm.com) Page 15 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO General Aviation Airports The Bend Municipal Airport is located just outside the Bend city limits in Deschutes County and is owned and managed by the City of Bend. The 415 acre airport has a single 5,200’ runway with parallel full length taxiways on the east and west sides. A total of 67 separate structures reside at the airport, 15 city-owned and 52 privately owned. There are currently 14 businesses located at the airport. Aircraft manufacturing, aircraft parts manufacturing, and helicopter flight training comprise the greatest commercial activity at the airport. The Prineville/Crook County Airport is located three miles SW of Prineville and has two well-maintained, lighted, intersecting asphalt runways that are able to accommodate small aircraft and corporate jets. The primary runway is 5,751’ in length and 75’ wide and is equipped with GPS instrument approaches. The crosswind runway is 4,054’ long and 40’ feet. An automated weather observation system was installed in the fall of 2013. In February 2013, Hillsboro Aviation began using the Prineville/Crook County airport as a flight training center for international students. Hillsboro picked Prineville because of the favorable weather conditions and services the airport and community provide. The Madras Municipal Airport and industrial site is a fast-growing Category 4 airport for general aviation and business use. The airport is owned by the City of Madras and is surrounded by a 125-acre industrial park. One of the two runways is 5,100’ in length and can accommodate a wide variety of general aviation aircraft up to C-130’s. The Madras Airport has 2,100 acres for aeronautical and industrial use. A new 39,000 SF hangar facility is leased to Aero Air, LLC as their base for maintenance and operation of fire-fighting aircraft. Aero Air recently expanded their operations with an additional 65,000 SF hangar and other aircraft related businesses. A $2.2 million Connect Oregon III project provided additional navigation aids and runway/taxiway lighting, an automated weather observation system, and new taxiway and ramp improvements. The Sunriver Resort Airport is a general aviation airport located 17 miles south of Bend in the heart of the critically acclaimed Resort. With a recently upgraded and refinished 5,500’ long paved and lighted airstrip, the Resort airport is the third busiest in the state and is one of the longest private airstrips in the West. The airport serves a wide range of aircraft from small private planes to corporate jets. Also prominent among these high-end services is luxury auto rental provided by the Kendall Automotive as well as full services to pilots and flight crews. Sisters Airport: At 3168’, Sisters Eagle Air Airport is located one mile north of downtown Sisters and is categorized by the Oregon Department of Aviation as Category IV (local general aviation airport). While privately owned by Sisters Eagle Air, Inc., the airport is open to public use. It is also used for EMS, and wildfire aircraft support. The runway dimensions are 3550’ x 60’ / 1082 x 18 m. Originally built in 1936, the Sisters Airport was re-paved, updated, and improved in 2013 and is fast becoming a center for local businesses. Several successful traded-sector companies, including ENERGYneering, have their headquarters at the airport. In the spring of 2014 the airport property was annexed into the City of Sisters. Through this public-private partnership, the airports, and its key companies, have plans to expand commercially/industrially, and with an array of benefits and perks for pilots. Additional Transportation Services For air freight, Central Oregon is served by Federal Express, United Parcel Service, and US Postal Service Express mail. To move motor freight, U.S. Highways 97 and 20, both of which run through Central Oregon, are two of the state's major trucking routes. To reach the Northwest’s metro areas, trucking companies that operate in Central Oregon use Hwy 97 to access Interstate 5 (north-south) and Interstate 84 (east-west). In terms of rail service, Burlington Northern-Santa Fe, Union Pacific, and the City of Prineville Railway provide direct rail connections for shipping to any market in the United States, Canada and Mexico. Amtrak provides passenger rail service to Central Oregon via the Chemult station, about 60 miles south of Bend on Hwy 97. Transit within Central Oregon, Cascades East Transit (CET) operates the regional bus system, providing service within the City of Bend, and between Bend and the following cities: La Pine, Prineville, Madras, Culver, Metolius, Warm Springs, Redmond, and Sisters. CET is managed by the Central Oregon Intergovernmental Council (COIC). For more information, visit www.cascadeseasttransit.com, call locally: 541-385-8680 or call toll free 1-866-385-8680. Among the most relevant intra-city bus options, Central Oregon Breeze, a division of CAC Transportation, provides service 362 days a year between Bend, Redmond, Madras, Gresham, and Portland. The Breeze connects Central Oregon residents with Amtrak, the MET, and Portland International Airport. TAC Transportation operates two lines important to Central OregoPage 16 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO nians making connections: Eastern POINT provides service along Hwy 20 from Bend to Burns and Ontario; similarly, the High Desert POINT provides daily Amtrak thruway service from the Chemult Amtrak station to Sunriver, La Pine, Bend, and Redmond. TRAVEL DISTANCES Distance from Bend Oregon With U.S. Highway 97 running north to south through Bend, and U.S. Highway 20 running east to west through Bend, travel to other areas in Oregon is relatively straightforward. Using either the northern Highway 26 or the more southern Highway 20 route, Portland is a three hour drive from Bend while Medford runs about four hours away. Outside Oregon, Seattle can be reached in less than six hours and parts of the Bay Area can be accessed in eight or nine hours. Los Angeles, at nearly 14 hours, tests the outer limit of a day’s drive. City Portland Medford Olympia Seattle Boise San Francisco Los Angeles State OR OR WA WA ID CA CA Miles 145 189 251 311 323 507 838 Source: Mapquest Drive Time 3 hrs, 3 min 4 hrs, 6 min minutes 4 hrs, 44 min utes 5 hrs, 42 min minutes 6 hrs, 33 min inutes 9 hrs, 0 min nutes 13 hrs, 48 min nutes COMMUTE TIME Averaging just over 20 minutes, drive times for Central Oregon are very manageable. For the majority of people living and working in the same urban center, most commute times are often less than 15 minutes. However, because the workforce throughout the Tri-County area is truly regional, it is common for people to commute between Redmond and Bend or between Sisters and Bend. Even with the TriCounty average of just over 20 minutes, commute times in Central Oregon are substantially below the average comSource: U.S. Census Bureau mute times in Portland, Seattle, San Francisco, Boise, Los Angeles and many other urban centers. City TOPOGRAPHY & CLIMATE Every community in Central Oregon has its own variations of temperature and precipitation, relative to its elevation and proximity to the mountains. The region is known for sun, averaging just two weeks fewer sunny days than San Diego, CA. Interestingly, the region lies on one of the nation’s largest rain gradients: Redmond receives an average of 8.6 inches of precipitation and is only 60 miles from a region in the Cascades that receives over 120 inches. Elevation La Pine Sunriver Bend Sisters Redmond Prineville Madras Warm Springs 4,300’ 4,100’ 3,623’ 3,200’ 3,077’ 2,868’ 2,242’ 1,575’ The geographical climate for Central Oregon is predominately High Desert. Summer temperatures range from an average high of 85° to a low of 44° F while winter temperatures range from average highs in the 40s to lows in the 20s. Annual precipitation ranges from 8.5 to 20 inches, falling mostly in the form of snow during the winter months. Bend, Oregon Weather Profile Average High (°F) Average Low (°F) Mean (°F) Average Precipitation (inches) Jan 41° 21° 32° 1.8 Feb 46° 24° 36° 1.0 Mar 51° 26° 38° 0.9 Apr 57° 28° 44° 0.6 May 65° 34° 50° 0.8 Jun 74° 41° 57° 0.9 Jul 81° 45° 64° 0.5 Aug 80° 44° 64° 0.6 Sep 74° 37° 55° 0.5 Oct 64° 31° 47° 0.7 Nov 48° 27° 38° 1.6 Dec 41° 22° 32° 2.0 Source: CountryStudies.us Page 17 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO TOP 10 PROPERTY TAXPAYERS Top 10 Property Taxpayers in 2014-15 Deschutes County Crook County Jefferson County 1 PacifiCorp (PPL) Property & Revenue Tax Manager (Pacificore) 2 Bend Cable Communications LLC Brasada Ranch Development LLC Gas Transmission Northwest Corp. 3 Gas Transmission Northwest Corp Les Schwab Warehouse Center Inc. PacifiCorp (PPL) 4 Cascade Natural Gas Contact Industries inc Bright Wood Corporation 5 Touchmark at Mount Bachelor Village LLC Les Schwab Tire Center #11 Keith Investments/Manufacturing 6 CVSC LLC (Cascade Village Square Center) O’Ryan Ranches LLC Warm Springs Power Enterprises 7 Deschutes Brewery INC WG Prineville LLC Safeway, Inc. 8 Wal-Mart Stores CenturyLink Burlington Northern Santa Fe Railroad 9 Century Link Apple Inc Union Pacific Railroad 10 Suterra LLC Gas Transmission Northwest Corp. CenturyLink Portland General Electric Sources: Local County Assessors CHAMBERS OF COMMERCE & OTHER BUSINESS RESOURCES Chambers of Commerce Other Organizations Bend Chamber 541-382-3221 www.bendchamber.org Prineville/Crook Co. Chamber 541-447-6304 www.visitprineville.com Central Oregon Visitors Assoc. (COVA) 800-800-8334 www.visitcentraloregon.com Crooked River Ranch Chamber 541-923-2679 www.crrchamber.com Redmond Chamber 541-923-5191 www.visitredmondoregon.com Confederated Tribes of Warm Springs Business and Economic Development 541-553-3468 | www.warmsprings.com La Pine Chamber 541-536-9771 www.lapine.org Sisters Area Chamber 541-549-0251 www.sisterscountry.com La Pine Industrial Group 541-536-9042 Madras/Jefferson Co. Chamber 541-475-2350 www.madraschamber.com Sunriver Chamber 541-593-8149 www.sunriverchamber.com Visit Bend 877-245-8484 www.visitbend.com BUSINESS RESOURCES Listed below is a sampling of the broad variety of business support organizations (BSO) that cover the continuum of business development - from concept to mature business. More resources are available, so contact EDCO for a complete list including local resources or customized assistance that brings our longstanding relationships with these organizations. Oregon Resources County Resources Business Oregon www.oregon4biz.com Central Oregon Intergovernmental Council (COIC) (541) 548-8163 | www.coic2.org Inventor’s Northwest (541) 317-1154 | www.coinventorsgroup.ning.com Central Oregon Workforce Coordinating Council 541-504-3306 NEW (Network of Entrepreneurial Women) www.networkwomen.org City Club of Central Oregon 541-633-7163 | www.cityclubco.com Oregon Employer Council Central Oregon (541) 408-4557 | www.oregon.gov/EMPLOY/OEC Crook County www.co.crook.or.us OMEP (Oregon Manufacturing Extension Partnership) www.omep.org Deschutes County www.deschutes.org |541-388-6584 Page 18 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO Vocational Rehab (541) 388-6336 Jefferson County www.co.jefferson.or.us Worksource Bend (Oregon Employment Department) www.worksourceoregon.org Small Business Development Center (SBDC) (541) 383-7290 | www.cocc.edu/sbdc Tri-County Resources Abilitree (541) 388-8103 | www.abilitree.org AdFed of Central Oregon (541) 385-1992 HRACO (Human Resource Association of Central Oregon) www.HRCentralOregon.org Opportunity Knocks www.opp-knocks.org COCC (Central Oregon Community College) www.cocc.edu OSU-Cascades (Oregon State University—Cascades Campus) www.osucascades.edu COIC (Central Oregon Intergovernmental Council) (541) 548-8163 | www.coic2.org SBDC (Small Business Development Center) (541) 383-7290 EDCO (Economic Development for Central Oregon) www.edcoinfo.com SCORE (Service Corps of Retired Executives) www.centraloregon.score.org HiDEC (High Desert Enterprise Consortium) www.hidec.org Tech Alliance www.techallianceco.org CENTRAL OREGON’S ENTREPRENEURIAL LANDSCAPE An increasing level of startup activity is being seen across Central Oregon. Numerous industry clusters are coalescing in such areas as high technology, bioscience, outdoor recreation and consumer goods, food products, brewing & distilling, energy, advanced manufacturing, and UAV (unmanned aerial vehicles). This activity is being driven by both entrepreneurs relocating to the region, and local entrepreneurs embarking on their own enterprises. The region is large enough to support the resources and access to capital that help new entrepreneurs get started, while still being small enough that those resources are interconnected enough to support businesses as they grow. Unique to Central Oregon are the numerous community resources and assets that are available. A few of these include those managed by EDCO, such as the Stable of Experts, PubTalk, and the Bend Venture Conference (BVC). The Stable of Experts (SOE) is a searchable database of over 120 experts that spans multiple industries and disciplines. These experts have agreed to dedicate a certain number of hours to helping entrepreneurs fill their skills gaps and mentor young leaders. Every new business is like a puzzle with certain pieces missing. The SOE helps to fill in these missing pieces and increase their probability of success. Central Oregon PubTalk is a monthly event held at McMenamins Old Saint Francis School, which has been converted into a very cool pub. These events are a showcase for entrepreneurs to pitch their business ideas, and for previously showcased businesses to provide an update on their progress. Keynote speakers are brought in to add an educational component to the event. A successful pitch is an integral component of securing funding, which all new business need. PubTalk offers a platform for emerging businesses to practice and perfect that pitch. Coaching sessions are conducted by EDCO previous to the event. The event has grown from 950 attendees in FY 2014 to an expected 1,500 in FY 2105. The Bend Venture Conference (BVC) has become the marquee event for the entrepreneurial community not just in Bend, but in the entire state of th Oregon. The annual event takes place in October and is in its 12 year. The 2014 BVC was a pivotal year for the conference, with over $1 million in funding secured for many of the participating startups. Over 450 investors, entrepreneurs, service, professionals, and students attend the event. Page 19 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO ABOUT EDCO EDCO Offices Central Oregon Business Begins with EDCO Founded in 1981, EDCO is a non-profit corporation supported by private and public members and stakeholders. Our mission is to create a diversified local economy and a strong base of middle class jobs in Central Oregon. To do this, we focus on helping companies do the following: Move. We guide employers outside the region through the relocation process as a resource for regional data, incentives, talent, site selection, and more. Start. We mentor and advise scalable young companies from concept to exit on issues such as access to capital, critical expertise, and strategy. Grow. We help local traded-sector companies expand be finding suppliers, workforce sourcing, permitting, and incentives. In addition, EDCO also works to improve the region’s business climate by influencing state legislation and local policy making, improving our transportation and information links to the rest of the world (air service, telecom) and catalyzing other critical infrastructure or community development needed to be prepared for successful business development. Board of Directors EDCO is a membership organization with roughly half of its funding coming from public entities (counties, cities and higher education) and the other half from private companies and individuals. The organization is guided by a 45-member board drawn from across the tri-county area of Crook, Deschutes, and Jefferson, and representing a wide variety of industry sectors. EDCO is funded by members Focused on Results At EDCO, we keep close tabs on economic indicators such as job growth, total payroll and new capital investment made by traded-sector companies. The results of the last three fiscal years and the first three quarters of fiscal year 2014-2015 are as follows: EDCO’s RESULTS Fiscal Year 2014-2015 (Q3) 2013-2014 2012-2013 2011-2012 TOTALS Companies 32 30 29 21 80 Jobs (new & retained) 524 590 1,136 890 2,616 Payroll (estimated)* $21.2 million $25.9 million $40.1 million $30.2 million $96.2 million New Capital Investment $81.9 million $210.9 million $340.0 million $25.6 million $576.5 million Regional Office (Bend) 705 SW Bonnett Way, Ste. #1000 Bend, OR 97701 | 541-388-3236 Executive Director: Roger Lee Bend Manager: Robyn Sharp Redmond 446 SW 7th Street Redmond, OR 97756 | 541-923-5223 Manager: Jon Stark Sisters 520 E Cascade Street | 541-977-5683 Sisters, OR 97759 Manager: Caprielle Lewis La Pine 16345 Sixth Street. | 541-536-1432 La Pine, OR 97759 Manager: Janet Burton Prineville/Crook County 510 SE Lynn Blvd. Prineville, OR 97754 | 541-233-2015 Manager: Caroline Ervin Madras/Jefferson County 2028 NW Airport Way Madras, OR 97741 | 541-390-3121 Manager: Janet Brown EDCO Platinum Members AmeriTitle Bank of the Cascades Bend Memorial Clinic BendBroadband Cascade Natural Gas Central Electric Cooperative, Inc. Central Oregon Community College CenturyLink City of Bend City of LaPine City of Madras City of Prineville City of Redmond City of Sisters Combined Communications Crook County Deschutes County Jefferson County Mid Oregon Credit Union OSU-Cascades Pacific Power Schwabe, Williamson & Wyatt SGA CPA’s & Consultants St. Charles Health System Page 20 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO