Business Oregon News

May 2011

Business Oregon Makes Its Case for Funding

During the first week of April, Business Oregon appeared before the Ways & Means Subcommittee on Transportation and Economic Development chaired by Sen. Joanne Verger, Rep. John Huffman and Rep. Terry Beyer. During the four-day process, we had the opportunity to discuss the importance of our people and programs and demonstrate how our investments throughout the state are creating and retaining jobs, generating critical income tax revenues, leveraging federal funding and other resources that further our innovation-based economy, as well as assisting communities with critical infrastructure development.

On the final day, the Subcommittee was able to hear testimony from businesses and organizations that Business Oregon has partnered with across the state to help grow their companies and capitalize on economic development opportunities. From Ochoco Lumber in John Day and Outback Manufacturing in Bend to the Port of Newport and innovation-award winner Puralytics, these individuals told the story about the importance of these investments and the impacts they have had, and will have, in communities across Oregon. The stories were inspiring and diverse, and I'd like to thank those who took time out of their busy schedules to come to Salem and lend their support to Business Oregon.

We recognize the difficult task facing the Legislature and understand there are no easy decisions when it comes to the state's budget and its impact upon Oregonians. That said, at a time when creating and retaining jobs and generating critical revenues are paramount, Business Oregon and the investments we make are an integral part to the state's economic recovery. We plan to continue to work with the Legislature to demonstrate the impact and importance of our investments to the state.

Lastly, I'd like to thank Chandra Brown, President of United Streetcar and Vice-President of Oregon Iron Works, for coming to Salem and representing the Business Development Commission. As one of our newest members, Commissioner Brown brings a wealth of knowledge and experience—and those talents were certainly on display in her opening comments.

Legislative Update—SB 219 Passed by Senate Committee

Bill Now Moves to Joint Ways and Means Panel
On April 19, the Senate Business, Transportation and Economic Development Committee voted to move SB 219 with a do-pass recommendation to the Joint Committee on Ways & Means.

Introduced by Sen. Richard Devlin and Rep. Tobias Read, this program (Business Expansion Program) would help innovative, knowledge-based industry companies create more high-paying jobs in Oregon. It would do so by helping to offset a company's expansion costs based upon the anticipated increase in income tax revenue due the state from the new jobs created.

In addition to the leadership of Sen. Devlin and Rep. Read, SB 219 has been endorsed by Gov. John Kitzhaber, the Oregon Business Development Commission, the Oregon Business Council, the Association of Oregon Industries and Oregon Economic Development Association, as well as by individual businesses across the state. In particular, I'd like to thank Novellus Systems of Tualatin and Erickson Air Crane of Central Point for lending their support before the Legislature on the importance of this bill for Oregon businesses.

As the budget process continues to unfold in Salem, we should gain a better sense of when the measure will be heard by the budget writing committee. Until then, I want to iterate that SB 219 is an important proposal that will provide a necessary tool to help create and retain high-paying jobs across the state.

Ft. George Brewery and Astoria Celebrate New Canning Line

After decades of canning salmon, the city of Astoria has a new, locally canned product to boast about and it's not seafood this time.

Recently, I was happy to attend the inaugural run of Fort George Brewery's new canning line. I was joined at the event by State Senator Betsy Johnson, who also serves on the Oregon Business Development Commission.

Fort George Brewery and Public House co-owners Chris Nemlowill and Jack Harris marked this historic moment amongst a crowd of local leaders and residents gathered to help the brewery celebrate. The year-long, million-dollar project launched Fort George beer into the statewide market and put Astoria on the map as a tourist destination for visiting beer lovers.

"We all had a dream—that this could be one of the coolest breweries in the world," Nemlowill told the Daily Astorian.

Astoria Mayor Willis Van Dusen praised all the work he'd seen from Nemlowill and Harris.

"It's really a sign of young entrepreneurs really putting their hearts and souls behind it," Van Dusen said.

Business Oregon assisted the company with a $150,000 forgivable loan from the Governor's Strategic Reserve Fund that was used to help finance the bigger brewhouse and the new canning line, resulting in twelve new jobs.

The company purchased the Fort George Block in downtown Astoria in October 2009 with the help of a Small Business Administration loan. Fort George Brewery needed a number of financial partners to make improvements and install the new equipment to increase its brewing capacity and begin distribution. The city of Astoria came through with a grant and a loan and the SBA also extended more financing. ShoreBank Enterprise Cascadia also stepped in as a financing partner.

Fort George opened its doors four years ago with six employees. Today, the company has 28 employees.

Clackamas' United Streetcar Featured on White House Blog

On April 12, U.S. Secretary of Transportation Ray LaHood gave a shout out to Clackamas' own United Streetcar—a subsidiary of Oregon Iron Works—for their work to build the first Made-In-America modern streetcars. United Streetcar President Chandra Brown, who serves on the Oregon Business Development Commission, said the company is currently building streetcars for Portland's eastside expansion of its streetcar as well as the city of Tucson, Arizona.

Here's an excerpt from what LaHood wrote:

"When you watch our latest video, 'Transporting America: United Streetcar,' you'll see the next generation of transportation. You'll see transit investments from the Department of Transportation helping people get where they need to go without breaking the bank. And you'll see a company out-innovating and out-building its foreign competition while creating jobs for American workers.

The streetcars rolling through Portland, Oregon, are helping commuters beat the rising cost of refueling their cars and vans and trucks. And, as rising gas prices take a bigger bite out of family budgets, other communities are looking to ease that bite through similar transportation options.

That's why the U.S. Department of Transportation has supported streetcar projects in communities like Portland across America. From Charlotte, North Carolina and Washington, DC, to Tucson, Arizona and Dallas, Texas, grants from the Federal Transit Administration are helping jump-start the American streetcar renaissance.

United Streetcar president Chandra Brown agrees: "The U.S. Department of Transportation has been a true partner as the streetcar industry has developed. Without their assistance, we could not have made the private investment to make this new industry successful."

That's good news for commuters and their families. It's also good news for American workers because, at United Streetcar, they're manufacturing the first American streetcars in more than 50 years.

Scam Telemarketers Targeting Oregon Businesses

Department of Justice Issues "Scam Alert" at Business Oregon's Request
We have recently received complaints from about a half dozen Oregon businesses about phone calls asking them for information and purporting to represent our agency. As a result, I asked Oregon Attorney General John Kroger to take action and the Oregon Department of Justice issued the following alert: "Numerous complaints have been received about a phone scam targeting Oregon businesses. The fake telemarketers pose as state employees calling from Business Oregon, the Oregon Business Development Department or similar name variations of the state's lead economic development agency. The callers inquire whether the business has moved recently and the size of their workforce. Oregon Attorney General John Kroger and Business Oregon warn businesses not to respond to these fake phone calls."

Based on the complaints received to date, the scam telemarketers are calling from: 1-800-247-4047. If your business receives a call from 1-800-247-4047 do not answer and inquire with your phone company about how to block receiving calls from this number.

Oregon businesses are not the sole target of this telemarketing scam, similar calls have been made to Washington, Minnesota, California, Colorado and Canadian businesses. In each instance, the fake telemarketers tell businesses they are with the state economic development office and ask for moving and employee information. In several cases, when a business has responded to the questions asked, new monthly charges appeared on the business' phone bill.

Oregon Department of Justice investigators are looking into this scam right now, but one theory is that the callers are trying to "cram" new services onto the business' phone bill. "Cramming" has been around since the deregulation of the telephone industry and happens when a company adds a charge to a phone bill for a service that was never requested, agreed to, or used.

If your business received a call from the fake telemarketers and your business answered any questions both Attorney General Kroger and I recommend contacting your phone service provider immediately to prevent erroneous charges from being added to your phone bill.

Business Oregon Events Will Highlight Export Growth Opportunities for Oregon Companies

International "Road Shows" in Eugene, Salem and Portland Will Mark
World Trade Week May 16-20
I want to make sure business owners in your communities are aware of a great upcoming opportunity to learn how to expand markets for their products. The International Road Shows are an excellent opportunity for Oregon's small- and medium-sized enterprises exporting goods and services to learn about the assistance available from state, local and federal government agencies designed to help Oregon companies tap into foreign markets.

Business Oregon, along with our local partners, invites Oregon business to attend a series of International Road Shows where they can learn how to seize growing export opportunities.

The road shows will take place during World Trade Week in Portland, Salem and Eugene, May 16-20. Registration is required for all events. President Obama's declaration highlights World Trade Week as an opportunity for us to reaffirm the importance of trade to our Nation's continued economic recovery and growth.

Discussions or activities may include:

• Presentations on China (Greater China, including the People's Republic of China, Hong Kong, Macau and Taiwan) and the European Union;
• Developing and expanding your products and services in major overseas markets; opportunities for sales and distribution;
• Meetings with government representatives and state trade officials.

Please consider taking advantage of this opportunity to expand your company's knowledge of key markets and learn about assistance available to diversify your company's exports.

Registration is required for all events. Visit our Web site for event details and to register.

International Terminal/NOAA Headquarters Site Project Video Available for Viewing

New NOAA Research Fleet Headquarters is Scheduled to be Completed by July 1
I am excited to announce the posting on the Business Oregon Web site of a recently produced video showcasing IFA's successful partnership with Port of Newport officials to clean up and redevelop the Port's International Terminal site well as the nearby Port of Toledo's boatyard. The two brownfield redevelopment projects, done in conjunction with the construction of a new headquarters for N.O.A.A.'s Pacific Research fleet, will mean hundreds of new jobs for Newport. You can watch the video here.

CEO Zuckerberg Opens Facebook Data Center Near Prineville

Company Hands Out Grants Totaling $105,000 to 24 Community Groups
On April 15, Facebook's first Prineville data center hosts its grand opening with company founder and CEO Mark Zuckerberg in attendance.

Tom Furlong, Facebook's director of technical operations, gave credit to state and local officials for their support of the project.

"We went from bare ground to serving users in 15 months," said Furlong in a press release. "That doesn't happen without the support of city, county and state leaders who have been so helpful in this first phase of the project."

The $200 million data center was built on a 127-acre site that sits on a bluff above Prineville. A second 150,000-square-foot data center is expected to be completed later this year next to the existing facility. The Prineville Data Center handles users' data—updates, photos, videos and more—for about half of the social networking Web site's 500 million users. Its computing capacity is big enough to serve all 500 million.

The Prineville Data Center's innovative design enables it to use nearly 40 percent less electricity than similar facilities. In addition, Facebook also recently announced that it will share technical details of its energy-efficient technology with other data centers. The data center will employ about 40 people, from computer server technicians to security guards. The full time jobs offer a sliver of economic hope for Crook County, which has had a jobless rate of between 17 to 20 percent.

And in more good news for Facebook's new friends—the city of Prineville and Crook County—the company announced its first annual dispersal of community grants totaling $105,000 to 24 different groups. Among the winners: Big Brothers and Big Sisters of Central Oregon, several Crook County High School programs and departments, and the Crook County Foundation.

In a statement, company officials said: "We are committed to playing a positive role in the communities in which we operate through employee leadership, volunteerism, in-kind donations and more. We're also thankful to our contractors and their workers who have made generous contributions as well. While we work globally, nothing changes the fact that we live locally and want to harness our success to help strengthen our own communities."

The company said it plans to donate approximately $105,000 per year in competitive grants for projects and/or organizations based in Crook County only. Facebook grants are available for projects only in Crook County that put the power of technology to use for community benefit and help improve education at all levels.

Grant applications will be accepted annually between January 1 and March 17, with awards announced each April.

List of grantees can be found on Facebook's site. For those who didn't receive awards this year, the company invites them to please apply in the next grant cycle.

Upcoming Events

• Business Development Commission Meeting May 13
• World Trade Week May 16-20

Find a complete listing of events on our Events Calendar