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Bend Chamber Weekly
February 26, 2010
By Courtney Linville, Government Affairs/Public Relations
This Week's Highlights:
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Chamber sends letter to Congress
In a unanimous decision, the Bend Chamber of Commerce Board of Directors has sent a letter to the House Financial Services Committee to help credit unions, support banking legislation, and increase incentives for small business owners.
The following is the letter submitted to House Financial Service Committee Chairman Barney Frank. The letter was also submitted to the Oregon Delegation including Congressman Greg Walden, Senator Ron Wyden, and Senator Jeff Merkley.
Dear Chairman Frank,
The Bend Chamber of Commerce is an organization representing over 1,300 businesses in the Central Oregon region. As such, we are concerned with the financial resources required to maintain and grow small business. Through our members, the Chamber has identified several roadblocks to improving our local economy and would like to share a list of potential solutions for your consideration.
- HR 3380 would increase the credit union member business lending cap to 25% of a credit union's total assets and the "de minimis" threshold for a loan to be considered a "member business loan" to $250,000. This would allow credit unions to increase their business lending up to $10 billion and provide much needed capital to small businesses throughout the country.
- Support community banking legislation that provides relief to those institutions who are the "de facto" business finance resource for the small communities that comprise the fabric of America. Many of these institutions are the core of their communities, providing jobs, resources and stability for their LOCAL communities. We believe this can be accomplished through regulatory oversight and capitalization programs that will make small business lending and credit available to end users.
- Provide tax relief incentives for small businesses to promote their growth through investment, new jobs, and revenue that support a growing tax base and ongoing revenue stream for our mandatory government safety and security needs.
Small business is a primary engine of growth for our region and the national economy. Thank you for considering these suggestions as part of your efforts to help move our economy forward.
Respectfully,
Tim Casey
Executive Director |
Chamber Conducts Business Roadblock Survey
As the economy moves toward recovery, the Bend Chamber would like to know if there are common issues businesses are struggling with. Are there roadblocks keeping us from growing and being prosperous? With your help, we hope to identify key issues we can work on.
Please take a moment to complete the following survey. Thank you, we appreciate your time and effort.
Please click on the link below to complete the survey.
Bend Chamber Roadblock Survey
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Sign-up today for the 2010 County Forecast Breakfast
It's time once again for the Bend Chamber's 2010 County Forecast Breakfast on March 4. This is your opportunity to ask questions of the Deschutes County Commissioners, County Administrator, and Sheriff.
Learn how the economy will impact the County's operations in fiscal year 2010-11. Find out more about the proposed Jail Expansion Bond. Learn about last year's success and challenges, upcoming goals and objectives, and priorities for the legislative session.
Don't miss this great opportunity to learn about what's going on in your community, and talk one on one with local officials.
If you are interested in signing up, go to www.bendchamber.org/county. For more information on the event, see the Upcoming Events section in this newsletter. |
Real Estate Forecast Recap - Experts Stay Positive With Changed Market
By Courtney Linville
Government Affairs/
Public Relations
There's no question the real estate market in Central Oregon has changed, but local experts agree there are positive signs and the community needs to be optimistic.
During the Bend Chamber's 2010 Real Estate Forecast Breakfast Steve Scott, Realtor and owner of Steve Scott Realtors, told attendees while property values are down, sales have actually increased over the past year.
With information from the Central Oregon Multiple Listings Service, Scott pointed out sales for single family homes have increased by 39 percent in Bend and 41.5 percent in Redmond from 2008 to 2009. "That's the good news," he said.
However, the bad news for the two areas is that values actually decreased 24.6 percent and 30.4 percent respectively in the last year. "Activity is increasing, but value has not stabilized yet," said Scott. "It will happen relatively soon... when, I'm not going to say."
Residential lots followed the same trend. In Bend, lots saw an increase of activity by 49.7 percent, while Redmond saw a decrease in activity by 18.5 percent. "It did not spike in Redmond, because I think there was just too much inventory," Scott said.
Like residential homes, lots also had a decrease in value. Between 2008 and 2009, Bend had a 66.9 percent decrease while Redmond had a 44.5 percent decrease.
However, showing the positive side, Scott told attendees the good news is investors are now coming in and purchasing lots in bulk. "I look at this as optimistic... 579 lots got sucked out of inventory," he said. "Someone had the confidence, the courage to buy in Bend! Those lots are now out of the system, and people will sit on them and wait."
Turning to information from the Bratton Report, a local analysis that tracks sales of single-family homes, Scott pointed out several price points now have half the inventory than was reported in 2008. In some cases, inventory is below a six month supply.
On the commercial side, vacancy rates are about 20 percent in the office market according to Scott. He said the retail market is in good shape at the moment with most areas reporting either a net sales gain or flat numbers from 2008 to 2009.
"We are not sitting on our hands, there are things happening," said Scott.
With all the positives that are going on in the market, there are still some hurdles in the way. Scott says there are several things holding the market back including restrained lending, cash poor purchasers, litigation, declining rents, government deficits, and the fear of the unknown.
AmeriTitle President Linda Stelle said many homeowners, including those who weren't ready for ownership, are now in trouble because they used their property as a vehicle to buy more toys and extend their income. Now they are upside down in their mortgages.
The media is full of stories about foreclosures and homeowners just simply walking away. Stelle encouraged people who have the financial stability, to stay in their homes and ride out the current market. She said if homeowners continue to walk away from their property, there is a risk that home values will continue to further decline.
Stelle pointed at more and more homes that are being left in disrepair and those homes in foreclosure are showing signs of "being unloved."
"While appraisers account for the damage, homeowners down the street may not know of the value of the homes," she said. "We need to stop this trend and reestablish faith in the market."
To reestablish faith, Stelle believes a solid marketing plan needs to take place. For years, media touted Central Oregon as a great place to live, work, and play. Stelle says a marketing campaign needs to take place that will sell Central Oregon to homebuyers outside of the area.
"We can bring buyers to Central Oregon and turn this around," she said. "Every person can be a part of that. Worrying about when this recession will be over is ill-conceived. We need to sell our community and engage the national press."
Moving forward, Stelle says we need to stop dwelling on foreclosures and default notices. "I would like to suggest we don't allow these notices to be an economic indicator," she said. "There is more to our story, and sadly we have been focusing on those notices."
Above all, both Scott and Stelle agree now is the time to be optimistic about the future. |
Town Hall Recap: Bend's UGB: Where do we go from here?
Last Friday's Town Hall Forum entitled "Bend's UGB: Where do we go from here?" allowed Chamber members the opportunity to speak with City Manager Eric King and Councilor Mark Capell about the key points of Bend's urban growth boundary (UGB), the main points of the city's appeal, and current discussions with the Department of Land Conservation and Development (DLCD). This interactive forum had questions ranging from density in residential areas to current obstacles and the city budget to appeals from other entities.
Listed below are just a few questions asked at Town Hall with abbreviated answers:
Question: DLCD Director Richard Whitman's report talked about how the city needed to have more efficient use of land, but what's the issue? How would they plan to do it and what's their idea?
King: The city wants to up-zone transit corridors as well as the Central Area Plan. There is additional housing in those areas, and we don't want to reconfigure existing areas. There are exception areas we could bring in as well, but it is not realistic to assume those lots will be redeveloped. The agency (DLCD) thinks the city should be more aggressive, and I think they want to see more evidence on the details of implementing the Central Area Plan and the up-zone.
Capell: So much time has been spent on the UGB, we haven't been able to move forward on the Central Area Plan. The council decided as soon as we get past the UGB, the Central Area Plan needs to move up on the Long Range Planning staff agenda.
Question: I gather the state wants us to move closer together? Isn't that the biggest fight we are facing?
King: We are coming to an agreement on a lot of issues, but we are making sure the Land Conservation and Development Commission (LCDC) and the state knows we grow differently and we are different. This community has developed to a similar pattern you find in cities in the valley. We have 16,000 pages in our record that demonstrates that. For example, we have more second homes than most cities. DLCD admitted they didn't read all 16,000 pages and now in our meetings with them, we are pulling out pieces of the record to show them.
The state also asks why we don't look at redeveloping existing neighborhoods, and the answer is because it's not good. If we try to up-zone areas or set the table for redevelopment, we will end up in lawsuits, and it doesn't get us anywhere. Why should we pretend that idea will work in the future?
Question: What are some of the other issues of contention? What are the obstacles?
King: On the residential land needs, we have heard the amount of land we requested is reasonable, however DLCD just didn't quite understand how we got those numbers. Right now we are pulling out pieces of the record to justify that. On employment land, there is some issue on vacancy rates and market choice. While there is some concern there, state law does give us some latitude. On the area of second homes, they are having trouble with our assumptions, but at our last meeting I believe they have come around to our understanding. There were some questions on special sites for a hospital and university, but I think we have resolved those issues as well. Where we are still a little further apart is transportation planning. We can defer undergoing a transportation planning rule for the UGB. DLCD wants a regional transportation plan that is completed, but that takes years. We can show them a work plan and state law doesn't require we have the plan ready for now.
Capell: It is will of the council in setting goals, for instance, I mentioned the Central Area Plan had to put on back burner for UGB, and with staff reductions that's all we had the ability to work on. It can change depending on who is in charge. Who you elect will make the difference on what's a priority. My approach is more efficient, less expensive bites. It's a business mentality to think about what projects can I do.
Question: There were 20 some entities that filed appeals. Do you see coming to a solution with the state resolving those?
King: There are 29 objectors to the UGB and of those 12 filed an appeal with LCDC. We are dealing with them on our issues. All of those objectors will have the chance to talk with LCDC in March. As we resolve these issues with the agency, some of the other issues are going away.
Capell: Some of those people put in an objection so they would have the ability to come forward at the hearing. They want to see how this plays out so they have an option. They wanted the standing so they had the ability to go to the appeal.
Question: How is the city budget taken into account? How will the expansion impact current tax payers?
Capell: A lot of people are concerned about the UGB, but the hard part is annexation. Lot of peole concerned about the UGB, but the hard part is annexation. As we finish the UGB, we need the planning department to bring in the requirements and costs for annexation. If you want to scare a developer, tell them "If you want to bring land into the city, you need to pay for your share of the infrastructure." I think the UGB is the easy part and the annexation will be painful. We have to make sure that every property annexed in brings with it the ability to service that land. We don't have the ability to bring water and sewer out there without their participation. The council wants to see the annexation rules fairly soon after the UGB. What we don't want to do is have several negotiations with developers. We want to have a standard that is applied evenly so we are not negotiating every deal. Infrastructure cost is key; we don't have the money to do it.
King: There are still existing deficiencies within our system. We are aggressively applying for grants. It might be time of the community to start thinking about a bond for infrastructure. To be economic development can't happen without infrastructure. We can't make it so costly that we can't have development either. There needs to be community participation because we can't just put it all on development. There are a lot of challenges with our infrastructure and that is why we have been educating the council on this. We want the council to form a committee of community leaders to develop funding strategies and priorities.
Question: Is there anything the citizen can do impact LCDC's decision?
King: The Commissioners pay attention to local media. So, when there is an article or news story about the UGB, we encourage the media outlet to talk to the community. It's not just a city battle. We are trying to carry weight and the will of the community. Talk with your networks even if you agree or disagree. This is a community of Bend proposal and we are representing what you would want. |
In the News
Cloverdale Road Closure: On Monday, March 1, Cloverdale Road will be closed to traffic from Jordan Road north to Highway 126. County Road crews will be replacing the existing wooden bridge over the irrigation canal. The closure is expected to last approximately three weeks. For the duration of the construction, traffic will be detoured onto Jordan Road and George Cyrus Road. Only local traffic will be allowed to access properties during the construction.
Oregon senators vote for $15 billion jobs bill: On Wednesday, Oregon Senators Ron Wyden and Jeff Merkley voted to pass the U.S. Senate's $15 billion jobs bill. The HIRE Act is designed to grant temporary exemption from payroll taxes to employers who hire an individual who has been employed for at least 60 days. For every employee retained for a full year, employers could earn a $1,000 income tax credit on their 2011 returns. Initiatives to fund highway projects and infrastructure are also included in the bill. "The HIRE Act isn't the end of our effort to create jobs. In fact, it's just the beginning," said Merkley in a statement. "Congress should immediately take up several more bills to make our economy work for working Americans, support growth in our small businesses, and put people back to work." The bill passed in a 70-28 vote.
House and Senate pass two bills to help small business: In the coming days, Governor Ted Kulongoski will see two bills designed to help small business cross his desk. On Thursday, the Oregon House voted to expand the availability of capital to Oregon small businesses. The Access to Business Capital Act increases loans for small businesses through the Oregon Business Development Fund (OBDF). The fund essentially provides start-up funds for businesses. At least 36 percent of the funds have been made to women-owned businesses. The act increases the amount of a loan the OBDF Director can approve from $125,000 to $250,000. The other "companion" bill, HB 3698, creates a Building Opportunities for Oregon Small Business Today or BOOST Fund. The bill authorizes the Oregon Business Development Department to make loans or award grants to small businesses from the fund. According to a release from the House Majority Office, the bill "provides four year, low interest loans of up to $150,000 for Oregon businesses that meet the eligibility criteria." Oregon businesses that hire new full-time employees that have been unemployed for at least 60 days can apply for a grant of up to $2,500 per new employee. The total amount of grant per applicant is limited to $50,000. |
Upcoming Events:
 March 4 - County Forecast Breakfast 2010 - It's your turn to ask questions of the Deschutes County Commissioners, County Administrator and Sheriff. How will the economy affect County operations in the 2010-11 fiscal year? Find out more about the proposed Jail Expansion Bond, learn about last year's successes and challenges, upcoming goals and objectives, and priorities for the legislative session. Prices for this even are as follows: Member Price: $30 each ($50 at the door), Corporate Table: $395 (includes 8 seats), Non-Member Price: $50 each, and Non-Member Corporate Table: $595 (includes 8 seats). Please RSVP by noon, Wednesday, March 3 to receive the pre-event prices at www.bendchamber.org/county.
 March 10 - Business Success Program - Rally Your Brand with the 5! - Cut through the advertising clutter and make your brand stand out. In today's world of constant bombardment of advertising messages on the web, mobile marketing, billboards, radio, newspapers and television, this statement seems nearly impossible.
Chris Piper, president of Breakout Strategic Merchandising, will show you how branded merchandising is a key component in your overall marketing strategy. Branding merchandise, a non-traditional advertising medium, is the only advertising medium capable of engaging all five senses. Brand merchandising can easily be integrated into the consumer's lifestyle and can stand alone as an advertising medium when used strategically.
At this session you will:
- Discover what branded merchandise really is and the value it brings to traditional advertising/promotional campaigns.
- Integrate all five senses into your marketing campaign resulting in lasting impressions.
- Identify the right product to complement your marketing campaign.
- Engage your customer and increase your brand's exposure using Strategic Merchandise Placement.
In this interactive session, Piper will present case studies from his vast experience in marketing. He will show you how branded merchandise can increase awareness of your brand and add value to traditional advertising, which leads to greater customer relationships.
Piper began Breakout Strategic Merchandising in 2008 after a varied background in advertising and marketing. He was director of advertising for Oregon Business Magazine and helped start AM1410 Business Radio Portland. He is an active speaker across the country to business associations, the premium sports industry and the Promotional Products Association International. If you would like to attend this event, please RSVP by noon on Tuesday, March 9 at www.bendchamber.org.
 March 18 - City Forecast Breakfast - Please join us to hear City Manager Eric King, Mayor Kathie Eckman, and Councilors Tom Greene and Jeff Eager discuss Bend's 2009 accomplishments and what City officials are planning for 2010 and beyond. The member price is $30 ($50 for non-members) and corporate table sponsorships are available for $395 (includes 8 seats) or a half table for $200 (includes 4 seats). If you would like to attend this event, please RSVP by noon on Wednesday, March 17 at www.bendchamber.org/city.
 March 19 - Town Hall Breakfast - What does Bend need to do to get its own Facebook? - Prineville's recent success brings to light many questions for Bend residents and business owners. What does Bend need to do to be in the running with our surrounding Central Oregon communities? Do we need to provide incentives? What about an enterprise zone? Are there any hindrances in attracting large and small companies to Bend? In this month's Town Hall Forum, Economic Development for Central Oregon Executive Director Roger Lee will discuss the reasons why Bend was not attractive to Facebook, some of the hurdles the city faces, and what can be done moving forward. This is a great opportunity to understand what we can do to bring more businesses to the area. Please RSVP at www.bendchamber.org.
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