Business Oregon News

February 2011

The Next Wave of Solar Manufacturing Heads to Oregon

San Jose's SoloPower Joins Solexant with Plans to Open Thin Film Solar Manufacturing Plant

I am very happy to report that Oregon has landed a second major, thin film solar manufacturing plant.

SoloPower Inc., based in San Jose, announced its initial plans are to build a $56 million manufacturing plant in Wilsonville employing an expected 140 workers. Within five years that investment is expected to grow to $340 million and the plant could employ 500 people.

Peter Kesser, senior vice president of sales and marketing for SoloPower, told the Oregonian: "Oregon put together the best combined package. Sometimes trying to get things done can be contentious. This was very synergistic."

I am particularly excited about SoloPower's decision because they represent the next wave of technological development in solar manufacturing - thin film solar. As I told the Oregonian, SoloPower will also bring suppliers to Oregon and boost business for existing solar supply companies. For example, Linde Gas in Medford, currently supplies Intel, but it could expand to process a type of gas needed by SoloPower.

In July, San Jose-based Solexant Inc. unveiled plans for a $200 million, 100-megawatt plant in Gresham that would initially employ 100. The company said at full build-out the plant could reach 1 gigawatt of annual production and employ 1,000.

Oregon investment recruiters encountered SoloPower in 2007 at a San Francisco clean-tech convention where entrepreneurs pitched ideas to venture capitalists. Business Oregon and others then kept an eye on the company since we knew that the venture capitalists would not have shown this much interest if the company's ideas were not sound.

Governor John Kitzhaber, who met with SoloPower officials prior to his inauguration, also expressed his pleasure about them choosing Oregon.

"SoloPower is bringing exactly the kind of new jobs Oregon needs. By bringing their manufacturing headquarters to Wilsonville, we are continuing on the path toward establishing a stronger clean technology manufacturing base in Oregon." Kitzhaber said.

Business Oregon's partners in this successful project included the Oregon Department of Energy, the City of Wilsonville and Clackamas County. In the end, it was all the partners and the package we managed to put together that sealed the success for Oregon.

Company officials said they conducted a multi-state search for a location to expand production. Due to the workforce pool, state and local government incentives and technology businesses in the Portland metro area that could support their operation, Oregon and Wilsonville won the day.

"Over the past year, SoloPower has considered several alternative sites. Oregon is an exceptional location for our long-term growth," stated SoloPower CEO Tim Harris. "SoloPower greatly appreciates the partnerships it has formed with Business Oregon, the Oregon Department of Energy, Clackamas County and the City of Wilsonville. Oregon's business friendly environment, excellent support programs, and highly skilled workforce made locating our new manufacturing facility in Oregon an easy decision."

Business Oregon Certifies Three Industrial Sites to Spur Job Creation

Sites Total More than 200 Acres of Project-ready Land in Prineville, The Dalles and Ontario

Business Oregon, working with its state and local partners, recently certified three large industrial sites as ready for business development and job creation in as few as 180 days. The certification of new industrial lands is a priority of Governor John Kitzhaber.

"Finding ways to certify more industrial land to create jobs for Oregonians is a priority of my economic development strategy," said Governor Kitzhaber. "These three new sites will provide rural Oregonians new job opportunities as we work to create jobs throughout the state."

Certified Industrial Sites are considered "project-ready"—where the typical impediments to development have been identified and resolved and building can begin within 180 days of a development decision. Issues related to environmental clearances, zoning, utilities and transportation are addressed by the appropriate state, local, and tribal agencies prior to confirmation of the site's readiness to be developed. All certified sites are reviewed by an independent certifier for adherence to the program's strict guidelines.

Certified industrial sites are attractive to site selectors and developers because they provide more certainty to the development process. These sites are an exciting addition to Oregon's certified industrial lands and represent a great job creation opportunity for industry.

Certification is a cornerstone of the state's industrial development strategy. Many of Oregon's highest profile business relocations and expansions have occurred on certified sites, including the 2011 Subaru announcement in Portland's Rivergate District; Genentech in Hillsboro; Facebook in Prineville; Google in The Dalles; Sanyo Solar in Salem; as well as large distribution centers for Home Depot and Lowe's Home Improvement in Salem and Lebanon, respectively.

"An abundance of competitively-priced industrial land offers many options for relocating and expanding businesses," said Jason Carr, Manager of Prineville Economic Development. "The community already offers fiber and broadband capacity not seen in most rural communities, and boasts transportation services through the airport and railroad freight depot."

For Additional Info on the Three New Certified Sites:

• Prineville: Contact Louie Hoffman of Steve Scott Realtors, louie@louiehoffman.com or call 541-388-1771.
• The Dalles: Contact Doug MacCourt of Ater Wynne LLP, dcm@aterwynne.com or call 503-226-8672 or Mr. Galen May, Project Manager, 541-993-4941.
• Ontario: For additional information from the owner of the site contact Mark Wada, Trustee, 503-228-6044 or mwada@fwwlaw.com. For additional information about the certified site in Ontario, Oregon contact Jim Jensen of Malheur County Economic Development, Jim.Jensen@malheurco.org or call 541-881-0327.

PNWER Leaders Visit State Capitol

The Pacific NorthWest Economic Region (PNWER) executives visited the State Capitol in Salem early in February as part of an annual visit to meet with key elected officials and policy makers to discuss the economic health of the region. A recent Portland Business Alliance study shows the increasing importance of international trade to Oregon's economy and reinforces my belief in the importance of helping Oregon companies find export markets for their products.

PNWER is unique: it is North America's only statutorily-mandated non-partisan, cross-border forum for legislators and the private sector. Each of PNWER's ten jurisdictional members (Oregon, Washington, Idaho, Montana, Alaska, British Columbia, Alberta, Saskatchewan, Yukon, and Northwest Territories) is required by state laws to join the organization. PNWER works across state and international borders to address thorny issues that require multi-jurisdictional collaboration. Its 14 working groups tackle everything from how to best build a smart electrical grid to how to combat invasive species.

Business Oregon has been an active participant in PNWER over the past several years, helping to drive PNWER's agenda on issues of interest to the citizens and businesses of Oregon. On July 19-22, PNWER will host its annual conference in Portland, bringing an expected 600 delegates to the event. Business Oregon is partnering with PNWER to plan the conference agenda and speakers. Oregon State Rep. Mike Schaufler of Happy Valley, (co-chair of the House Business and Labor Committee) will take over the presidency of PNWER this summer at the conference.

Executive Director Matt Morrison and members of the organization's executive board make it a point to visit each of the ten state and provincial capitals as well as Washington, D.C. and Ottawa to meet with top elected officials to promote bi-national cooperation around many of the difficult issues that aren't limited by our respective borders.

A sampling of PNWER's activities involving Oregon include:

• PNWER's second Legislative Leadership Academy, held in Regina, Saskatchewan in November 2009, brought together 35 legislators from both countries to understand the unique differences between our political systems in the US and Canada. State Reps. Schaufler and Rep. Deb Boone attended from Oregon.
• Implemented the first Energy Legislative Institute certificate program for 37 legislators, together with partners, including the University of Idaho and U.S. Department of Energy. This nine-month program was designed for legislators to understand the fundamentals of how the energy infrastructure functions. Participants from Oregon included State Reps. Brad Witt and Matt Wingard.
• Coordinated over 35 partner organizations in lobbying the Canadian government to allow a second train in and out of Vancouver BC, tying Oregon, Washington and British Columbia together.
• Hosted a regional tourism and media reception during the 2010 Olympics in Vancouver. Travel Oregon and other regional tourism departments had a chance to highlight travel and tourism opportunities to media from around the world.
• Hosted a regional economic development roundtable discussion during last year's PNWER Summit in Boise.

To learn more about PNWER, go to www.pnwer.org. To learn more about the PNWER conference in July, contact Amy Keiter at Business Oregon.

On a Sad Note

Patrick R. Murphy, the Oregon Manufacturing Extension Partnership's (OMEP) Executive Director since 2001, lost his battle with cancer on January 26, 2011. He was 67. He is survived by his loving wife, Connie Horton, two stepchildren and a brother who lives in Washington. In lieu of flowers, donations may be made to the Audubon Society of Portland www.audubonportland.org. Pat was a driving force and advocate for building the Oregon economy through implementation of continuous improvement practices within the Oregon manufacturing community.

SW Oregon Community College Utilizes Recovery Zone Bonds to Create Curry County Campus in Brookings

New Campus Will Open Next January

Construction of Southwestern Oregon Community College's new Curry Campus in Brookings is making swift progress, according to college officials.

The new Curry Campus was made possible by the issuance of more than $6 million in Recovery Zone Economic Development bonds. Business Oregon managed the reallocation and distribution of these bonds from the federal government.

The new campus will be a 24,920 sq. ft., two-story "campus in a building" designed with all of the features needed for 21st century learning. The campus will provide a true community venue for the college and the community, with formal and informal spaces designed for learning, collaboration, and networking. New communications technology will link students and residents to classes and events on Southwestern's Coos Campus and beyond. Local access to quality, fully-equipped health, computer and science labs will expand training options and career choices for Curry County residents.

A community wing will serve college classes and host short-term trainings, small conferences, community events and rotating art and cultural displays with minimal disruption to the day-to-day activities of the college. The wing has two large rooms each with the capacity to be divided into two smaller rooms, an after-hours entrance/reception area and access to a catering/demonstration kitchen.

In 2005, the State of Oregon allocated $2.3 million in matching capital construction funds for the new Curry Campus. Southwestern requested and received $6.115 million in taxable Recovery Zone Economic Development Bonds (RZEDB) from Business Oregon for this $8.4 million capital construction project. The college was the first in the state to use the RZEDB. Fundraising is ongoing for furniture, fixtures and equipment.

Construction began July 2010 and the new Curry Campus will open for classes January 2012. The Campus dedication is scheduled for January 27, 2012.

Export Growth Drives Oregon's Economy

The recent visit of Chinese President Hu Jintao to the White House, as well as President Barack Obama's continued emphasis on the importance of exports to economic growth, has focused attention on the importance of exports to Oregon companies.

Business Oregon's Global Strategies Team remains focused on increasing Oregon exports to China and all of Asia. We have many examples of the importance of exports to Oregon's economy. In the first 11 months of 2010, Oregon companies exported $16.2 billion in merchandise, a significant increase above 2009's total exports of $14.9 billion.

Recently, Erickson Air-Crane (Portland, Oregon) announced the pending sale of five S-64 commercial helicopter aircraft to China Taicang Aircrane Company Ltd. The companies have executed an Acceptance of Proposal that provides for the five aircraft to be delivered over a two-year period beginning with the delivery of the first aircraft by February 28, 2011.

In Warrenton, LEKTRO, Inc., a family-owned business landed more overseas customers after Business Oregon gave the company a $2,500 Oregon Trade Promotion Program (OTPP) grant to help defray some of the company's costs to exhibit at the Singapore Air Show in February 2010.

As a result of its work at the trade show, the company estimates it garnered $240,000 in additional sales orders for its products. The return on this investment so far is nearly 100:1.

Finally, Ashland electric motorcycle manufacturer Brammo, Inc. reported recently that they expect to realize more than $5 million in new export orders as a direct result of participating in the EICMA motorcycle show in Milan, Italy in November 2010. Business Oregon provided OTPP funding for this small manufacturer in Southern Oregon to participate in a targeted trade show for the motorcycle industry.

Brownfield Loan Will Help Clean Up Tigard Site

A $150,000 Brownfield Redevelopment Fund loan has been approved to help finance the cleanup of the former Coe Manufacturing site in Tigard. The property consists of 4.67 acres of developed industrial real estate in Tigard, located just off I-217 and I-5. The manufacturing facility is currently vacant and is being offered for sale.

Coe Manufacturing Company owned the property from 1959 to 2004 and used the building for offices, dry storage, and for design, testing, and manufacturing of lumber industry equipment. In 2004, cleanup activities on the property resulted in the excavation, removal, and off-site disposal of petroleum-impacted surface soil.

The award will cover the cost for soil, groundwater and sediment sampling; for removal of the top layer of soils in known impacted areas, or soils from identified hot spots on property; for the completion of a Focused Feasibility Study; and the completion of Oregon Department of Environmental Quality approved Remedial Action.

USDA Announces Grant Awards to Study Renewable Energy in Rural Oregon

U.S. Agriculture Secretary Tom Vilsack announced last month that USDA Rural Development has selected six feasibility study grants for funding in Oregon, to determine the feasibility of renewable energy projects.

Among the grant recipients is Yaka Energy LLC, a tribally-owned energy procurement and resale business located in Pendleton, Oregon. A grant of $42,500 will fund a feasibility study for converting biomass, mostly from wood chips, into 30 megawatts of renewable energy in Umatilla County through a process called thermal gasification.

Novus Pacific LLC has been selected to receive a $50,000 feasibility study grant for a biomass-to-energy facility at Port of Morrow on the Columbia River in Eastern Oregon. The project aims to use an efficient anaerobic digestion system to convert local crop biomass and livestock manure into 1,066 MMBTU (Million Metric British Thermal Units) of methane gas per day to heat an ethanol facility.

KLS Surveying, Inc. in Vernonia is the recipient of a $50,000 feasibility study grant to establish a baseline measurement of biomass and carbon currently stored on private forest lands in Columbia County.

Ruby Renewables, Inc. based out of Mercer, Washington has been selected to receive a $9,787 feasibility study grant for an integrated system to grow and harvest algae for use as a renewable energy feedstock near Boardman, Oregon.

Other Oregon feasibility studies funded also include two micro hydro projects in Wallowa County.

These Rural Energy for America Program (REAP) loan guarantees and grants can be used for renewable energy systems, energy efficiency improvements, feasibility studies and energy audits. More information on the REAP program, which was authorized under the 2008 Farm Bill, is at: www.rurdev.usda.gov/BCP_ReapGrants.html.

Oregon Arts Commission Awards Opportunity Grants to Oregon Artists: Announces New Partnership with The Ford Family Foundation

Commission Also Hands Out "Arts Build Communities" Grants

The Oregon Arts Commission has announced nine awards totaling $12,839 in the competitive Career Opportunity grant program. These awards provide support to individual artists who want to advance their careers through the development of artistic, business or professional skills. The Arts Commission also announced its agreement with the Ford Family Foundation to manage new Opportunity Grants to be reviewed in conjunction with the Commission's Career Opportunity grants.

The Foundation's Opportunity Grants will range from $1,500 to $7,500 and may be applied for in conjunction with the quarterly deadlines for the Career Opportunity Grants. The next deadline for applications is February 14, 2011. Applications are available here. For a list of previous award recipients click here.

The Oregon Arts Commission also announced 25 awards totaling $110,000 in the 15th year of its Arts Build Communities (ABC) grant program. The program supports projects that broaden the impact of the arts in communities and fosters community arts partnerships across the state.

This year, fifty proposals requesting over $270,000 were submitted from throughout the state. Over 60% of applications came from outside the Portland region, and the distribution of awards reflects the diversity of the applicants. Arts Build Communities grants offer support to underserved communities, including those where opportunities to experience the arts are limited by geography, ethnicity, economics, or disability.

The award recipients' information can be found at the Arts Commission's web site.

Export-Import Bank to visit Oregon—Feb. 14-18, 2011

A representative of the Export-Import Bank will be in Oregon for outreach during mid-February. If you would like more information about insuring export sales to risky markets (e.g., Central/Eastern Europe, China, Southeast Asia, Mexico & South America, and India) and/or export working capital, please let us know. Business Oregon is organizing a series of 1:1 meetings in the following locations:

February 14 and 15—Portland and suburbs
Feb 16—Gresham, Hood River and The Dalles
Feb 17—Ex-Im presentation for Walla Walla Wine
Feb 18—La Grande and vicinity, including possible roundtable with Small Business Development Center.

Please contact Alexa Hamilton at alexa.hamilton@state.or.us or 503-229-6056 with your meeting preferences (date/time and location).

Inaugural Event of the Oregon-Israel Business Alliance

The Oregon-Israel Business Alliance (OIBA) invites you to hear from former Governor Ted Kulongoski about his recent economic development mission to Israel. The Governor led a group of industry leaders from Oregon and signed a bilateral cooperation agreement with the State of Israel designating Israel as a key trade partner. A representative from the Israeli Consulate in San Francisco also will be presenting on behalf of the Israeli government, as well as local business and government leaders.

Learn how you can connect your business to Israeli counterparts through the Oregon-Israel Business Alliance, the "go-to" organization for expanding business with Israel.

Date: Tuesday, February 22, 2011
Time: 5:00 to 7:00 PM
Where: University of Oregon White Stag Building (70 NW Couch Street, Portland, OR)
Cost: $15 early bird (by February 15th) and $20 after the 15th or at the door.
Refreshments and drinks will be served.

Find a complete listing of events on our Events Calendar