EDCO 2013 Central Pregon Profile

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ECONOMIC DEVELOPMENT FOR CENTRAL OREGON 705 SW Bonnett Way, Ste. #1000 | Bend OR 97702 www.edcoinfo.com | 541-388-3236 | 800-342-4135 Page 1 Last updated 11/4/2013 © Copyright 2013 EDCO 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 in population growth over the last decade; in fact, one of five new Oregonians chose to live in the Tri-County area. In the same decade, Central Oregon has also topped the state in job growth, creating a region that's characterized by dynamic small businesses and entrepreneurial activity. The region boasts strong clusters in soft- ware, biosciences, renewable energy, brewing, and recreation equipment. For most new residents, Central Oregon is a lifestyle choice, offering a friendly envi- ronment, year round recreation options, and world class amenities—all with the bene- fits of a small town. 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 any sacri- fice in transportation or telecommunications infrastructure. What sets Central Oregon apart from other lifestyle cities like Aspen or Jackson Hole is its livability and affordability. This Profile provides key business demographics to understand the dynamics of the region. If you need more specific information, call us or visit our website at www.edcoinfo.com. For more information, contact: Quick Reference Roger Lee, Executive Director Economic Development for Central Oregon (EDCO) 705 SW Bonnett Way, Suite #1000 Bend, OR 97702 Phone: 541-388-3236 800-342-4135 www.edcoinfo.com 2 Top Employers 11 Education 3 Wage Information 14 Telecommunications 4 Industry Mix 14 Health Care 6 Business Costs 15 Media 7 Employment Trends 15 Transportation 9 Housing Costs 17 Travel Distances, Commuting 10 Real Estate, Financial Institutions 18 Topography & Climate 10 Utilities 19 Top 10 Taxpayers 11 Population 20 Business Resources 2 2 0 0 1 1 3 3 CENTRAL OREGON PROFILE

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The 2013 Central Oregon Profile created by Economic Development for Central Oregon.

Transcript of EDCO 2013 Central Pregon Profile

Page 1: EDCO 2013 Central Pregon Profile

ECONOMIC DEVELOPMENT F O R C E N T R A L O R E G O N

705 SW Bonnett Way, Ste. #1000 | Bend OR 97702

www.edcoinfo.com | 541-388-3236 | 800-342-4135

Page 1 Last updated 11/4/2013 © Copyright 2013 EDCO

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 in population growth over the last decade; in fact, one of five

new Oregonians chose to live in the Tri-County area. In the same decade, Central Oregon has also topped the state in job growth, creating a region that's characterized by dynamic small businesses and entrepreneurial activity. The region boasts strong clusters in soft-ware, biosciences, renewable energy, brewing, and recreation equipment. For most new residents, Central Oregon is a lifestyle choice, offering a friendly envi-ronment, year round recreation options, and world class amenities—all with the bene-fits of a small town. 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 any sacri-fice in transportation or telecommunications infrastructure. What sets Central Oregon apart from other lifestyle cities like Aspen or Jackson Hole is its livability and affordability. This Profile provides key business demographics to understand the dynamics of the region. If you need more specific information, call us or visit our website at www.edcoinfo.com.

For more information, contact: Quick Reference

Roger Lee, Executive Director Economic Development for Central Oregon (EDCO) 705 SW Bonnett Way, Suite #1000 Bend, OR 97702 Phone: 541-388-3236 800-342-4135 www.edcoinfo.com

2 Top Employers 11 Education

3 Wage Information 14 Telecommunications

4 Industry Mix 14 Health Care

6 Business Costs 15 Media

7 Employment Trends 15 Transportation

9 Housing Costs 17 Travel Distances, Commuting

10 Real Estate, Financial Institutions 18 Topography & Climate

10 Utilities 19 Top 10 Taxpayers

11 Population 20 Business Resources

22001133 CENTRAL OREGON PROFILE

Page 2: EDCO 2013 Central Pregon Profile

ECONOMIC DEVELOPMENT F O R C E N T R A L O R E G O N

705 SW Bonnett Way, Ste. #1000 | Bend OR 97702

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CENTRAL OREGON’S TOP PRIVATE EMPLOYERS

Listed to the right are the region’s largest non-government em-ployers. According to the Oregon Employment Department, over 75% of Oregon firms have nine or fewer employees and the aver-age firm employs 15 people. To an even greater extent than the state, Central Oregon's business environment is typified by innova-tive, small companies, producing niche-market products and ser-vices, from mobile application software to transportation floors, from medical instruments to recreational equipment, to some of the top craft beers in the U.S. Still, a number of large employers operate successfully here, tapping into Central Oregon’s ever-expanding workforce, overall low cost of do-ing business and business-friendly local governments. Large employers include some distinct groups of employers, including: Manufacturing and high technology companies have a long history of success in the region, comprising more than 20% of the 50 largest employers. Building products (mostly from wood) continues to be an area of concentration in manufacturing with some of the world’s larg-est molding and millworks production plants operated by Bright Wood, JELD-WEN, Contact Industries and Woodgrain. High tech employers include search specialist (G5), precision titanium casting (PCC Schlosser), medical device reprocessor MEDISISS, and pharmaceutical-delivery technologies (Bend Research). Healthcare is led by St. Charles Medical Center, the largest private employer in the region. St. Charles owns three hospital complexes (in Bend, Redmond and Prineville) and has the hospital in Madras under it management. 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 (global sales); Les Schwab Tires, Bank of the Cascades, Deschutes Brewery, and Central Oregon Trucking (with sales focused on the West Coast); and BendBroadband. Administrative centers are also large private employers, illustrated by IBEX, a provider of teleservices; Pacific Source, an independent health plan provider; and Consumer Cellular, with a cell phone center.

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 Sunriver Re-sort, Mt. Bachelor, Eagle Crest (Northview Hotel Group), Kah Nee Ta Resort, and Indian Head Casino in our Top 50 listing. Navis, a reserva-tion sales technology company, also figures into to this key sector, as does The Riverhouse, convention center.

Central Oregon’s Top 50 Private Employers

Organization Employment

2012 2013

St. Charles Medical Center (SCHS) 2,842 2,627 Sunriver Resort 900 900 Walmart 519 787 Mt. Bachelor 749 743 IBEX (formerly TRG Customer Solutions) 442 650 Bright Wood Corporation 494 647 Bend Memorial Clinic 575 582 Safeway 575 557 McDonald's NA 518 Fred Meyer 497 510 Opportunity Foundation 420 406 Les Schwab Distribution Facility 494 403 Northview Hotel Group 350 400 Deschutes Brewery 259 287 BendBroadband 268 285 Costco 256 283 JELD-WEN/Bend Window Division 270 278 Central Oregon Trucking 215 260 Bank of the Cascades 245 259 Bend Research 250 254 Ray's Food Place 200 253 Athletic Club of Bend 230 250 PCC Schlosser 201 242 Bi-Mart 219 238 Woodgrain Millwork 170 236 Home Depot 201 226 Mt. View Hospital 248 221 Lowe's 194 219 Pioneer Memorial Hospital 201 219 Albertson's 172 211 Mountain View Hospital 255 207 Consumer Cellular NA 202 Neighbor Impact 172 193 The Center (Ortho/Neuro Care & Rsch) 193 193 The Riverhouse 200 193 The Bulletin 210 190 Mosaic Medical NA 190 JELD-WEN Millworks Mfg 149 182 Contact Industries 196 180 Navis 103 179 Wells Fargo Bank 186 177 Target Stores 180 175 Keith Manufacturing Co. 165 170 Indian Head Casino 237 166 Pacific Source 143 165 US Bank NA 164 Hooker Creek Companies 150 150 Les Schwab Retail Stores 127 147 MEDISISS 111 130 Kah Nee Ta Resort 250 126

Source: EDCO, March-April 2013. CenturyLink, Erickson’s Thrift-way, and Les Schwab headquarters are not included.

Page 3: EDCO 2013 Central Pregon Profile

ECONOMIC DEVELOPMENT F O R C E N T R A L O R E G O N

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AVERAGE WAGES FOR SELECT OCCUPATIONS

Below are average hourly wages in Oregon, Washington, and California for a broad array of occupations. Wages in Washing-ton are typically the highest on the West Coast while California wages routinely run at least 20% higher than those in Oregon. Central Oregon wages are usually below those of Oregon, often 10 to 20%.

Wage Comparison for Selection Occupations (annual average, $ per hour, ranked by highest paying in Central Oregon)

Occupation Central OR OR CA WA

Financial Manager 51.67 50.59 65.36 56.08

Computer Systems Analyst 45.89 38.32 43.39 43.07

General & Operations Manager 42.37 49.21 62.67 61.97

Marketing Manager 40.36 49.54 69.41 62.67

Industrial Production Manager 39.16 44.46 50.37 49.89

Registered Nurse 37.16 37.55 44.25 36.44

Urban/Regional Planner 36.84 34.96 39.76 34.39

Software Developer, Applications 36.64 41.22 50.86 47.29

Physical Therapist 36.20 37.94 42.31 37.79

Dental Hygienist 35.79 38.47 44.32 44.04

Electrical Engineer 34.57 45.04 50.25 45.18

Database Administrator 34.46 34.98 40.46 41.07

Architect, except Landscape & Naval 34.00 34.00 44.75 33.91

Mechanical Engineer 33.05 39.65 45.41 43.05

Network Systems Administrator 32.90 33.00 40.30 35.67

Accountant/Auditor 30.12 30.42 36.43 32.55

Landscape Architect 30.10 30.67 38.10 30.29

Multimedia Artist & Animator 29.27 29.27 40.77 32.84

Police/Sheriff Patrol Officer 28.30 28.71 38.28 32.34

Lodging Manager 27.01 23.80 27.07 31.53

Electrician 26.03 32.73 30.28 29.36

Middle School Teacher, except Special Ed 24.92 25.57 NA 28.53

Clinical Psychologist 24.59 33.65 41.19 35.86

Food Service Manager 23.43 23.47 25.85 34.56

Industrial Machinery Mechanic 23.24 24.53 27.18 28.28

Supervisor, Administrative & Office Workers 22.66 24.08 28.28 26.90

Paralegal 21.94 24.18 28.75 24.31

Computer User Support Specialist 21.37 25.44 NA 27.07

Chef & Head Cook 20.22 21.68 23.55 20.98

Carpenter 19.35 21.96 27.38 24.01

Medical Transcriptionist 19.31 18.23 20.56 17.27

Supervisor, Retail Sales Workers 19.29 19.17 21.17 21.63

Truck Driver, Heavy 18.59 19.25 20.48 20.46

Graphic Designer 17.81 23.46 27.83 25.60

Computer-Controlled Machine Tool Operator 17.70 18.10 18.47 22.77

Secretary 15.04 16.08 18.31 18.11

Customer Service Representative 13.51 15.90 18.89 17.32

Receptionist 12.73 13.05 14.23 13.96

Sources: Oregon Employment Department and California Employment Development Department (full year 2012 data), and Washington State Employment Security Department (Q1 2012 data).

Page 4: EDCO 2013 Central Pregon Profile

ECONOMIC DEVELOPMENT F O R C E N T R A L O R E G O N

705 SW Bonnett Way, Ste. #1000 | Bend OR 97702

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COVERED EMPLOYMENT & PAYROLL, INDUSTRY MIX

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. Wages include commissions, bonuses, vacation and holiday pay, but do not include benefits. Below are the number of business establishments (units), employment, payroll, and average pay in the three counties in the 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.

2012 Covered Employment

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Crook County Deschutes County Jefferson County Tri-County Total

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Total Private Coverage 172,546,653 4,371 39,475 1,845,542,269 51,923 35,544 101,672,004 3,477 29,241 2,119,760,926 59,771 35,465

Natural Resources & Mining 6,746,128 233 28,953 18,154,976 493 36,826 11,584,701 414 27,982 36,485,805 1,140 32,005

Construction 8,164,435 180 45,358 113,919,531 2,945 38,682 2,350,736 80 29,384 124,434,702 3,205 38,825

Manufacturing 22,254,456 674 33,018 158,477,282 3,843 41,238 31,858,065 829 38,430 212,589,803 5,346 39,766

Wholesale 38,081,563 614 62,022 74,785,371 1,451 51,541 8,663,598 223 38,850 121,530,532 2,288 53,116

Retail 11,220,212 498 22,531 247,622,278 9,292 26,649 11,306,926 482 23,458 270,149,416 10,272 26,300

Transportation, Whsg. & Utilities 19,950,611 443 45,035 54,414,362 1,091 49,876 6,849,148 122 56,141 81,214,121 1,656 49,042

Information 15,883,146 52 305,445 68,292,567 1,364 50,068 869,186 32 27,162 85,044,899 1,448 58,733

Financial Activities 3,749,190 119 31,506 141,660,779 3,061 46,279 3,489,233 109 32,011 148,899,202 3,289 45,272

Professional & Business Svcs. 9,970,091 292 34,144 257,623,969 6,504 39,610 3,832,426 146 26,249 271,426,486 6,942 39,099

Private Education & Health Svcs. 22,634,067 519 43,611 472,725,018 9,868 47,905 10,519,326 372 28,278 505,878,411 10,759 47,019

Leisure & Hospitality 9,169,235 543 16,886 171,650,468 9,619 17,845 6,896,448 487 14,161 187,716,151 10,649 17,628

Other Services 4,673,804 204 22,911 64,367,153 2,361 27,263 3,417,288 181 18,880 72,458,245 2,746 26,387

Government 52,682,864 1,215 43,360 371,441,947 8,319 44,650 107,258,295 2,690 39,873 531,383,106 12,224 43,470

Total All Ownerships 225,229,517 5,586 40,320 2,216,984,216 60,243 36,801 208,930,299 6,167 33,879 2,651,144,032 71,996 36,823

Source: Oregon Employment Department

Page 5: EDCO 2013 Central Pregon Profile

ECONOMIC DEVELOPMENT F O R C E N T R A L O R E G O N

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COSTS OF DOING BUSINESS

Oregon has a well-deserved, long established national status for being a cost competitive location for business. A major con-tributing factor to the Oregon advantage is the fact that Or-egon has no sales tax, no inventory tax, a single sales factor that benefits large employers with multiple operations, and an affordable property tax system. Average industrial, commercial, and residential power costs are nearly half those in California and on average 25% be-low national averages. With steady in-migration, labor costs are also among the most affordable on the West Coast. Shown below, workers’ compensation costs in Oregon re-main highly favorable compared to other states. After de-clining more than 60% since 1990, the “pure” premium is increasing 1.9% in 2012, a change driven by the economy. Additional 2012 changes include a decrease in the worker’s

State Cost Factors

Sales tax: None in Oregon.

Inventory tax: None in Oregon.

Corporate income tax is 6.6% on taxable income of $10 million or less; for incomes greater than $10 million, the rate is 7.6 % plus $660,000. S corporations are subject to a $150 minimum tax, while C corporations are subject to a range of $150 to $100,000 based on Oregon sales.

Workers’ compensation: The pure premium rate is $1.52/$100 of payroll, a 1.7% increase from 2012. Oregon has the 13

th low-

est rate in the nation, 16% below the national median.

Unemployment insurance: The minimum taxable rate is 2.2% and the maximum is 5.4%; an employer’s rate is based on their actual experience. New employers pay 3.3% and the 2013 taxable wage base is $34,100.

Vehicle registration: $86 for two-year renewal.

Source: EDCO Business Research, May 2013

Page 6: EDCO 2013 Central Pregon Profile

ECONOMIC DEVELOPMENT F O R C E N T R A L O R E G O N

705 SW Bonnett Way, Ste. #1000 | Bend OR 97702

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compensation premium assessment, from 6.4% in 2011 to 6.2%, and no change to the Workers’ Fund Benefit Assess-ment, which remains at 2.8 cents per hour. Shown below are business costs for the Tri-County region. Land costs in the region have de-creased as much as 50% in the past few years. Costs do vary by community, with Crook and Jef-ferson Counties having lower lease and construction rates. In Deschutes County, Redmond offers lower land and lease costs than neighboring Bend, reflecting land availability and degree of amenities.

Business Costs Across the Region (all costs expressed as costs per square foot)

Category Deschutes County Crook

County Jefferson County Bend Redmond Sisters

Industrial land costs $3.50-$6.00 $1.75-$5.001 $2.55-$8.00

2 $0.60-$5.00 $0.75-$2.00

Lease rates Industrial Commercial Retail

$0.35-$0.75 $0.75-$1.75 $0.50-$2.50

$0.30-$0.50 $0.50-$1.50 $0.40-$1.50

$0.45-$0.55 $0.85-$1.50 $0.85-$1.50

$0.20-$0.30 $0.20-$0.30 $0.20-$0.30

$0.07 $0.07 $0.07

Construction $50-$75 $50-$75 $35-$75 $40-$70

$40-$60

Source: EDCO Business Research, May 2013. 1 Within Redmond city limits; 2 2012 data

OREGON: A VIBRANT CENTER FOR BUSINESS Recent Oregon business rankings are shown at right, including such well-regarded organizations as the Brookings Institute, the Kauffman Foundation, and Ernst & Young.

In 2012, the most currently available da-ta, the Bureau of Economic Analysis (BEA) measured Oregon’s gross domestic product (GDP) at $198.2 billion. The five sectors that contribute the most to the state’s GDP are manufacturing, real es-tate and rental and leasing, health care and social assistance, wholesale trade and retail trade.

Oregon’s Business Climate: One of the Best in the Nation

Oregon is #1 Location for Manufacturing, American Institute for Economic Rsch, 2013

#2 Lowest Taxes on New Investment, Ernst & Young C.O.S.T. Study, 2011

Oregon has #5 Lowest Effective Business Tax Rate, Ernst & Young C.O.S.T. Study, 2011 (5 years running in the Top 5)

Top 10 Lowest Cost of Doing Business, CNBC, 2011

Oregon Ranked Top Five for Quality of Life, Business Facilities, 2011

#14 Best State for Business, Forbes, 2013

#7 Most Inventive State (patents), CNN, 2011

Oregon Ranked #2 Greenest Economy, Brookings Institute, 2011

Source: Oregon Business

Page 7: EDCO 2013 Central Pregon Profile

ECONOMIC DEVELOPMENT F O R C E N T R A L O R E G O N

705 SW Bonnett Way, Ste. #1000 | Bend OR 97702

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Within the BEA-defined region of the six western-most states, Oregon's GDP has grown over the past five years at a faster average rate than any other state. The same also holds true over the last 10 years. On a more immediate level, from 2011 to 2012, Oregon's GDP was the third fastest growing in the nation (3.95% growth), owing much to its strength in exports which experienced a 21.5% increase over the last year. At $18.4 billion, Oregon’s exports account for over 9% of its GDP. GDP for the Bend MSA (Deschutes County), the only county in the region for which statistics exist, was $6.025 billion in 2011, tracking at 3.0% of the state’s GDP.

EMPLOYMENT GAINS IN THE PAST DECADE

From 2002 until 2012, jobs in the nation have grown at an overall rate of 0.9%. Most of Oregon metro areas sur-passed the national job crea-tion average, with the Bend Metropolitan Statistical Area (MSA), which consists of Deschutes County, leading the list with a 13.5% increase.

Jefferson County, in contrast to past years, is experiencing a significant uptrend in jobs created. With a 7.0% contrac-tion, Crook County has expe-rienced a significant loss in its job base. This decrease is partially due to Crook County residents’ strong dependence on manufacturing of building products, which has been heavily impacted by the 2007-09 recession and persistently low hous-ing starts. The impact in Crook County has been partially mitigated by gains in agriculture. Of the Tri-County area, Deschutes County has been the growth driver. Not only has Deschutes County led employment growth in Oregon on a percent basis, but it also tops all other metro areas in the state in terms of sheer number of jobs created.

Employment Gains 2002-2012 (Annual average nonfarm employment, not adjusted for seasonality)

Area 2002 2012 Gain/Loss % Change

Bend MSA (Deschutes County) 53,057 60,243 7,186 13.5%

Jefferson County 5,582 6,167 585 10.5%

Portland MSA 822,343 870,784 48,441 5.9%

Oregon 1,573,083 1,641,494 68,411 4.3%

Salem MSA 143,465 148,407 4,942 3.4%

Medford MSA 74,688 76,030 1,342 1.8%

U.S. Average 128,233,919 129,411,095 1,177,176 0.9%

Corvallis MSA 34,116 34,284 168 0.5%

Eugene-Springfield MSA 137,969 136,659 -1,310 -0.9%

Crook County 6,005 5,586 -419 -7.0%

Source: Oregon Employment Department

Page 8: EDCO 2013 Central Pregon Profile

ECONOMIC DEVELOPMENT F O R C E N T R A L O R E G O N

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UNEMPLOYMENT TREND

Historically, Oregon’s unemployment rate tracks higher than the national rate. Because of Central Oregon’s continued in-migration, job creation typically lags population growth. In the most recent recession, unem-ployment peaked in 2009 and now is on a noticeable downward trend. The chart to the right provides a three-year perspective on unemploy-ment in the Tri-County area. Since early 2010, unemployment rates have been reduced significantly, lending credibility to structural changes resulting from employment gains. Unemployment rates in the first four months of 2013, while not reflected in the chart, declined even further, reduc-ing Deschutes County’s rate to 10.4%, its lowest level since October 2008.

HOUSING COSTS Home Prices

As with much of the rest of the country, residential property prices peaked to all-time highs in 2007 and declined in value by as much 40% in the following years. The benefit of the downturn is that Central Oregon be-came far more affordable for incoming businesses and residents. Prices are now rebounding substantially, recovering some lost ground. Both me-dian and average home prices increased in 2012 by about $30,000 and by roughly the same amount in the first quarter of 2013. Also a sign of healthy recov-ery, the average number of days on the market has decreased and the number of short sales and bank owned sales are declining.

Home Prices of Existing Single Family Homes (residential, less than one acre, $)

Median Sales Price

2005 2006 2007 2008 2009 2010 2011 2012

Crook County 149,375 195,500 199,450 177,500 112,000 91,100 79,900 87,000

Bend 279,900 351,978 345,000 289,450 212,000 191,750 190,000 220,395

Redmond 198,818 262,749 250,000 216,000 147,500 123,450 116,000 132,000

La Pine 148,450 183,500 215,000 160,000 109,000 99,900 88,200 94,950

Sisters 394,250 460,000 415,000 367,450 286,250 223,750 201,000 245,000

Sunriver 462,500 575,000 548,547 555,738 402,000 417,500 375,000 350,000

Jefferson County 133,500 165,080 177,950 139,950 89,900 69,950 69,900 71,550

U.S. 219,000 221,900 217,900 196,600 172,100 173,200 166,200 180,200

Average Sales Price

Crook County 154,906 212,173 224,151 206,874 145,040 120,537 94,540 113,911

Bend 334,570 406,122 426,044 353,142 266,319 245,069 238,186 263,556

Redmond 226,238 292,268 286,543 245,204 170,739 142,402 137,214 148,086

La Pine 163,971 202,331 237,665 180,153 126,606 110,632 107,238 100,906

Sisters 449,979 514,259 526,626 437,636 372,483 295,488 248,019 294,247

Sunriver 501,764 627,345 637,734 628,979 458,614 455,550 398,948 381,530

Jefferson County 131,493 170,228 187,367 144,146 145,040 78,376 77,010 74,939

U.S. 267,400 268,200 266,000 242,700 216,900 220,000 214,300 225,500

Sources: Central Oregon Association of Realtors (COAR), National Association of Realtors

Page 9: EDCO 2013 Central Pregon Profile

ECONOMIC DEVELOPMENT F O R C E N T R A L O R E G O N

705 SW Bonnett Way, Ste. #1000 | Bend OR 97702

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Average Monthly Rent

The Central Oregon rental market began tightening in 2010 and continues to face heightened demand in the midst of con-strained supply. According to the Central Or-egon Rental Owners Association, current va-cancy rates have shrunk to very low single digits (one percent in some cases as of April 2013), down from 12.4% in 2009. During the recession, over 1,500 homes came back on the market as rental units. That supply has now slowed significantly and the available rental inventory has shrunk, property manager says. An uptick in-migration to Bend further intensifies the demand for rental housing and exerts incremental pressure on prices. For the first time since 2008, there is interest in building multifamily residential housing in Bend and Redmond. More than a half-dozen multifamily housing units are in the planning stages in 2013; one for over 100 units has been approved and others are likely to be approved in 2013. The best projection, though, points to about 200 additional rental units coming online by the end of 2013 and into 2014. The transition of OSU-Cascades to a full four year university in 2015 is expected to generate further interest in construction of multifamily units. For renters, property managers characterize the current environment as tight, as renters stay put and are expected to absorb rental increases in 2013.

REAL ESTATE DEVELOPMENT TRENDS

Building activity is steadily increasing throughout Central Oregon. Current demand for residential real estate is outpacing the available supply of properties. As a result, the number of building permits issued is increasing rapidly and home prices are climbing. Central Oregon’s commercial real estate market is marked by substantial positive absorption trends. In their quarterly POINTS newsletter, Compass Commercial Real Estate observes that Central Oregon’s commercial real estate market is expe-riencing strong growth and low vacancy rates in the retail and office sectors. Absorption of Bend’s 2.8 million SF of office space has picked up, albeit gradually, with the current vacancy rate at 19.3%. Brian Fratzke of Fratzke Commercial Real Es-tate noted that building space in Bend, often driven by high-demand areas such as the Old Mill District and Downtown Bend, have very low vacancy rates which are currently about 7.7% for retail space.

Activity in the industrial market (approximately 5.5 million SF in Bend and Redmond) has been strong with a positive absorption rate for Q1 2012. Bend’s 8.2% vacancy rate is at its lowest since Q3 2008; Redmond’s 22.5% rate repre-sents three consecutive quarters of positive absorption.

FINANCIAL INSTITUTIONS

Central Oregon is home to 22 financial institutions which collectively have 84 branches in the region. The total FDIC-insured deposit base as of June 30, 2013 (the most current data available) was $2.69 billion.

Average Monthly Rent for a 3 Bedroom House ($)

Area 2006 2007 2008 2009 2010 2011 2012

Bend 965 1,005 969 969 1,012 1,231 1,110

Redmond 919 885 863 863 911 975 952

La Pine NA NA NA NA 861 889 838

Sunriver NA NA NA NA 896 1,086 1,066

Sisters NA NA NA NA 850 922 875

Crook County 748 846 809 809 847 835 955

Jefferson County 672 842 849 849 817 800 765

Source: Central Oregon Rental Owners Association (COROA); April 2013

Banks, Savings Associations, and Credit Unions in Central Oregon (as of March 2012)

American West Bank Northwest Farm Credit Services

Bank of America OnPoint Community Credit Union

Bank of the Cascades Oregonians Credit Union

Bank of the West PremierWest Bank

Columbia State Bank SELCO Community Credit Union

CRAFT3 Sterling Savings Bank

High Desert Bank U.S. National Bank of Oregon

Home Federal Bank Umpqua Bank

JPMorgan Chase Bank Washington Federal Savings & Loan

Mid Oregon Credit Union Wells Fargo Bank

Northwest Community Credit Union West Coast Bank

Source: FDIC

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In April 2012, Washington Federal announced that it would acquire South Valley Bank & Trust in its entirety, converting the three branches in Central Oregon to the new financial institution.

Investment Firms

Reflecting higher than average deposit wealth, Cen-tral Oregon also supports a significant number of financial planning and investment firms. Many of these firms also provide wealth management for clients nationwide.

UTILITIES SERVING CENTRAL OREGON

Electric Companies

Central Oregon providers are: Pacific Power (PPL), 888-221-7070 Central Electric Cooperative (CEC), 541-548-2144 Midstate Electric Cooperative, 541-536-2126

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 over 50% below those in neighboring California.

Natural Gas

Natural gas is widely available throughout Central Oregon and is supplied by Cascade Natural Gas Corporation (888-522-1130) serving more than 44,000 industrial, commercial and residential customers. Potential users for the Large Vol-ume–General Service rate should contact EDCO for addition-al 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 resi-dents and businesses. Rates vary between communities in the region. Commercial and industrial rates are typically based on meter size; please contact EDCO for specifics.

POPULATION GROWTH The Tri-County area has experienced a period of moderate growth. Deschutes County, the most populous of the three counties, has grown drastically and is the primary driver of population growth in the Tri-County area. Deschutes County grew dramatically between the 1990 and 2000 Census and even more so between 2000 and 2010. Bend more than doubled in size between 1990 and 2000 and grew by 47% between 2000 and 2010. While growth flattened between 2010 and 2012, current signs point to a pickup of in-migration and business activity in Bend. Since 2010, Crook County has grown

Growth in Financial Deposits (in millions)

County 2001 2006 2012 % Growth 2001-12

Crook County $123 $261 $206 67.5%

Deschutes County

$1,164 $2,294 $2,351 102.0%

Jefferson County $92 $123 $139 51.1%

Tri-County Total $1,379 $2,678 $2,696 95.5%

Source: FDIC Summary of Deposits as of 6/30 for each year.

Average 2012 Electricity Rates (in cents, per kwh)

Service Class U.S. CA OR CEC PPL

Industrial 6.70 10.73 5.61 5.52 5.47

Commercial 10.12 13.60 8.34 5.63 7.11

Sources: EDCO, U.S. Dept. of Energy Administration Table 5.6.B

Natural Gas Rates User Base Charge Cost Per Therm

Commercial $3.00 $1.00

Industrial $12.00 $0.93

Large Volume–General* Included $0.90

*Requires specific contract and usage conditions; 1 therm = 1,000 BTUs

Population in Central Oregon

Area 1990 2000 2010 2012 % Growth

2000-12

Oregon 2,842,321 3,421,399 3,837,300 3,883,735 13.5%

Crook County 14,111 19,184 21,020 20,650 7.6%

Deschutes County 74,958 115,367 157,905 160,140 38.8%

Bend 20,469 52,029 76,639 77,455 48.9%

Redmond 7,163 13,481 26,215 26,345 95.4%

Jefferson County 13,676 19,009 21,750 21,940 15.4%

Tri-County Total 102,745 153,560 200,675 202,730 32.0% Sources: U.S. Census Bureau, Population Research Center. 1990 and 2000 Census numbers are for April 1 of that year, all others are for July 1. 2010 Census estimates were revised.

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at a very slow pace after dramatic growth between 1990 and 2010. Still, over the past dozen years, Prineville’s population has grown by 25.6%. At 15.4% growth since 2000, Jefferson County has grown at a small but steady rate. In its first revision to Oregon’s population forecast since 2004, the Office of Economic Analysis released in March 2013 new pro-jections out to 2050. In the near term, Deschutes County is expected to add about 3,000 residents each year in the 2015-20 timeframe. The Office projects a 15.5% increase in Deschutes County’s population from 2010 to 2020, increasing to 17.4% from 2020 to 2030, and to 12.6% from 2030 to 2040.

EDUCATION

Public Schools

Central Oregon schools in the Deschutes County, Crook County, and Jefferson County School Districts serve an area of greater than 7,800 square miles; Central Oregon school districts include urban centers such as Bend and Redmond along with a wide ar-ray of smaller towns and rural areas. Over 32,000 students at-tend 62 schools. Tri-County districts operate 29 elementary schools, 13 middle schools, and 11 high schools as well as a di-verse array of charter and community schools. Of the area’s teachers, nearly 99% meet Highly Qualified stand-ards and over 65% hold a Master’s Degree or higher. In the 2012-13 State School Report Card, 20 of schools in the Tri-County area earned a performance assessment of “Outstanding”, the state’s highest rating. More than 70% of Bend students continue their education in college following graduation.

The largest school district is Bend-La Pine, and with an attendance area spanning more than 1,600 square miles it is the seventh largest in the state. Nearly 17,000 students are enrolled in the District’s 28 schools. Bend-La Pine employs a total of 1,675 employees; of the teaching staff, 72% have a masters’ degree or higher and 98.5% meet the federal “Highly Qual-ified” designation. The District is also proud to have a number of its staff recognized at the state and national level. Earlier this year, the Oregon Association of School Executives named Bend-La Pine Superintendent Ron Wilkinson as the 2012 Oregon Superintendent of the Year. Recent staff awards include: Oregon’s Elementary Principal of the Year, Oregon’s High School Principal of the Year, Oregon’s Art Teacher of the Year, Ore-gon’s Journalism Teacher of the Year, Oregon’s Librarian of the Year, Oregon’s Culi-nary Teacher of the Year, and Presidential Award winners for Excellence in Math and Science Teaching. Within five years of graduation, more than 80% of Bend-La Pine students will pursue post-secondary education or training. Since 2000, students in the Bend-La Pine District have continually scored higher on SAT tests than their peers, 95 points higher than their peers nationwide.

Population Projections 2015 - 2050

Area 2000 2010 2012 2015 2020 2030 2040 2050

Oregon 3,431,100 3,837,300 3,883,735 4,001,600 4,252,100 4,768,000 5,203,000 5,588,500

Tri-County Total 154,577 200,675 202,730 210,640 228,442 265,104 296,753 323,049

Crook 19,226 21,020 20,650 21,124 21,933 23,821 26,117 28,496

Deschutes 116,278 157,905 160,140 166,892 182,455 214,288 241,223 262,958

Jefferson 19,073 21,750 21,940 22,625 24,054 26,995 29,413 31,595

Sources: U.S. Census Bureau (2000, 2010); Portland State University (2012); Oregon Office of Economic Analysis (2015 – 2050).

School District Students Schools Website Crook County

Crook SD 3,506 11 crookcounty.k12.or.usU

Deschutes County

Bend-La Pine SD 16,905 28 bend.k12.or.usU

Redmond SD 7,055 13 redmond.k12.or.usU

Sisters SD 1,688 3 sisters.k12.or.usU

Jefferson County

Jefferson SD 509J 2,857 7 Jcsd.k12.or.us

Culver SD 656 3 culver.k12.or.usU

Tri-County Total 32,667 65 NA

Source: Oregon Department of Education; local school districts

2012 SAT Scores

Bend-La Pine 1589

Washington 1545

Oregon 1542

California 1502

U.S. Average 1498

Nevada 1450

Sources: College Board & Bend-La Pine School District

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Sources: OSU-Cascades & Central Oregon Community College. Fall term enrollment.

Private Schools

Private schools in Central Oregon have developed a reputation for high academic achievement and a focus on giving per-sonalized attention to each individual student. There are 29 private schools in Central Oregon; twelve of these are faith-based and represent a variety 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 educa-tional methods and services are present in private schools throughout Central Oregon, several institutions stand out for reputation and large student population. Among these select private schools are Trinity Lutheran School and Cascades Academy in Bend as well as Central Christian School in Redmond.

Demand for Higher Education

The populace of Central Oregon has a strong interest in pursuing higher education and im-proving their vocational skills. The chart to the right shows enrollment for Central Ore-gon’s post-secondary education institutions over the past six years. The last six years of enrollment increases, or “demand” for higher education, have been driven by several forc-es: Central Oregon’s growing population base, the national economic recession, and job training and re-training. Additionally, OSU Cascades Campus is gaining in reputa-tion, attracting more students, and expand-ing its program offerings. EDCO works in partnership with Central Ore-gon Community College (COCC) and OSU-Cascades to ensure that program offerings align with business needs. Both institutions have top leaders that serve as Di-rectors on EDCO’s Board.

Central Oregon Community College (COCC) Central Oregon Community College (COCC) operates campuses in Bend, Redmond, Madras and Prineville. Founded in 1949, COCC (www.cocc.edu, 541-383-7700) is Oregon’s oldest community college. The College offers transfer/lower divi-sion 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 Small Business Development Center (SBDC) is operated by COCC and provides active support for Central Oregon’s small businesses. EDCO works closely with the SBDC to provide programs, 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 person and pro-fessional development. Enrollment at COCC has increased dramatically, doubling in the last few years as increasing numbers of area residents turned to the College for education and training during the recent 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 lo-cally using skills learned in the career and technical education programs.

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The Central Oregon Community College District encompasses all of Crook, Deschutes and Jefferson counties, as well as the southern part of Wasco and northern portions of Klamath and Lake counties. A seven-member board of directors governs the College, with members of that board elected from geographic zones in the District. The District covers a 10,000-square-mile area, making it larger than eight of the U.S. states. 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 opening in fall 2012. Just twenty minutes away, COCC’s Redmond Campus is home to the region’s Manufacturing and Applied Technology Cen-ter, a 26,000-square-foot technical training facility with certificate and degree programs readying students for jobs in the manufacturing field. Scheduled to open in the fall of 2014, COCC’s new $12.5 million Technology Education Center will further serve Central Oregon’s business and workforce needs at the Redmond Campus. This 34,000-square-foot facility, planned and developed with industry participation, will be constructed right on the corner of Veterans Way and Salmon Drive and will house 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 541-504-2900. Oregon State University – Cascades Campus

Founded in 2001, OSU-Cascades currently offers only upper-level and graduate courses in a unique partnership with Cen-tral Oregon Community College in which students typically took lower-division courses at COCC. 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, OSU-Cascades students may choose from 13 majors and more than 25 degree options (including Business Administration, En-ergy Engineering Management, Tourism and Outdoor Leadership, Hospitality Management and, in Fall 2013, a Computer Science degree). As part of its Hospitality Management program, OSU-Cascades works with Cornell University’s School of Hotel Administra-tion, offering executive education courses to hospitality leaders on the West Coast. Considered the world leader among hotel schools for its undergraduate, graduate and research programs, Cornell has built an international reputation among professional hoteliers and restaurateurs for its executive education program. An initiative to transform OSU-Cascades into a four year university has gained strong community support as well as the endorsement of Governor Kitzhaber and the Oregon University System, resulting in the campus expansion being placed near the top of a list of more than 30 higher-education projects. The four-year university would be funded by $4 million from the community, $16 million from the state and $4 million in campus funds; as of the publication date of this Profile, prospects for approval by the Oregon Legislature in 2013 look very promising. If approved, plans call for enrollment to double from 1,000 to 2,000 by the year 2015. Additional Colleges and Universities

Additional accredited academic institutions have a presence in Central Oregon, typically combining evening and occasion-al weekend classes in conjunction with distance learning.

Concordia University, offers an MBA locally (1-866-288-3931) Eastern Oregon University Division of Distance Education (541-385-1137) 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

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TELECOMMUNICATION

Built largely over the last decade, Central Oregon’s telecommunications infrastructure is one of the Northwest’s most technologically advanced, meeting business and telecommuting requirements for capac-ity, redundancy and reliability. High-end data services, typically offered only in large metro areas, include Ethernet access rates up to 10 GB. Several local pro-viders focus purely on the commercial marketplace. Services are delivered to residential and commercial customers across a number of access options including land line (copper), high speed fiber optics, and wireless (WiFi, Wi-Max 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, self-healing 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 BendBroad-band won a federal broadband infrastructure grant for $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. The result will be a comprehensive, regional 40 Gbps fiber ring.

SERVICES

Health Services

Top quality health care is one of Central Oregon’s crown jewels. Bend, along with the rest of Central Oregon, has a high concentration of world-class physicians and specialists, attracted to the area for its high quality-of-life. The region’s re-search and care in cardiology and orthopedics lead the nation. St. Charles Health System owns and operates medical cen-ters in Redmond, Madras and Bend (Oregon's only Level II Trauma Center east of the Cascades) and leases and operates Pioneer Memorial Hospital in Prineville. St. Charles Medical Center is a fully accredited, 261-bed hospital with 2,158 medical staff and employees. Services include 24-hour emergency care, intensive/cardiac care, physical, respiratory and nutritional therapy, radiology, surgery and an on-campus rehabilitation center. In addition, St. Charles Medical Center offers quality care services including cancer care, cardiology, neurology, orthopedics, stroke care, and weight loss surgery. High-tech leading-edge services are also present in St. Charles’ telemedicine and da Vinci Surgery programs. Bend is fortunate to be the medical hub of Central Oregon. St. Charles Medical Center is a high-quality institution that serves the area through its high-tech and readily available medical services. Over the years, St. Charles Health System has been recognized as the primary provider of quality health care for patients in Central and Eastern Oregon. In 2012, Thomson Reuters recognized St. Charles as one of the best health systems in the nation for quality and efficiency for the fourth year run-ning. Clinics specializing in anticoagulation care, behavioral health, pulmonary care, wound care, and many other services support the services offered by St. Charles and give accessible care suited to patients’ needs. Prominent among these clinics, The Center serves patients and families through a wide variety of neurosurgical and orthopedic services.

Telecom Resources in Central Oregon

Carriers & Providers BendBroadband, BendTel, CenturyLink, Quantum Communications, Bendnet

Wireless Internet Community Broadband, Webformix, Yellowknife Wireless

Cable BendBroadband, Chambers Cable, Crestview Cable, DirecTV

Resellers & Integrators Integra Telecom (Internet & voice)

Telephone Interconnect ACT Cascades, CascadeTel

Cellular AT&T, Sprint, T-Mobile, US Cellular, Verizon

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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 53 is the Bend bureau for Eugene-based ABC affiliate KEZI, KFXO

TV 39 is the Fox affiliate, KPNZ is the CBS affiliate, and KOAB TV 3 is the PBS station. BendBroadband airs local origi-nation programming through COTV 11, its community cable channel, which provides in-depth local news, sports and information.

Other: Central Oregon is home to numerous blogs and other news options. Cascade Publications, parent of Cascade

Business News, also publishes Cascade Arts & Entertainment and Cascade Discover.

TRANSPORTATION Commercial Airport

Redmond Municipal Airport (RDM; www.flyrdm.com) pro-vides commercial air service to all of Central Oregon with 14 depar-tures each day to Denver, Los Angeles, Portland, Salt Lake City, San Francisco, and Seattle. Sever-al years ago RDM completed a three-year $40 million expansion project, increasing the size of the terminal six-fold. In mid-June 2013, daily nonstop service between RDM and LAX will start with American Airlines, bringing the number of carriers at the airport to four (Alaska, Amer-ican, United, and Delta). 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 to Prineville.

Flying Time to Markets Served by RDM

Flight to: Flying Time Minutes Denver, CO 2 hours 24 min

Los Angeles, CA 2 hours 0 min

Portland, OR 0 hours 40 min

Salt Lake City, UT 1 hour 30 min

San Francisco, CA 2 hours 8 min

Seattle, WA 1 hour 10 min Source: Redmond Municipal Airport (www.flyrdm.com)

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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-foot 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 cur-rently 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 the city. Prineville has two well-maintained, lighted, intersecting asphalt runways that are able to accommodate small aircraft and corporate jets. The primary runway is 5,751 feet in length and 75 wide and is equipped with GPS instrument approaches. The crosswind runway is 4,054 feet long and 40 feet wide. An automated weather observation system is being 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 stu-dents. Hillsboro picked Prineville because of the favorable weather conditions and services the airport and community provide. These primary flight students use the airport to gain experience flying fixed wing aircraft and helicopters.

The Madras Municipal Airport and industrial site is a fast-growing Category 4 airport for general aviation and business use. The airport is now 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 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 is currently expanding their operations with an additional 65,000 SF hangar and other aircraft related businesses. A $2.2 million Connect Oregon III project has been constructed with 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 ac-

claimed Resort. With a recently upgraded and refinished 5,500 foot 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. A wide variety of amenities are immediately accessible through the Resort. 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 Carrera Collection as well as full services to pilots and flight crews.

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 ma-

jor 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.

For 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 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 res-

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idents with Amtrak, the MET, and Portland International Airport. TAC Transportation operates two lines important to Central Oregonians 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 FROM BEND

With U.S. Highway 97 running north to south through Bend, and U.S. Highway 20 running east to west through Bend, travel to oth-er 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.

COMMUTE TIME

Averaging just over 20 minutes, drive times for Cen-tral Oregon are very managea-ble. 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 region-al, it is not unusual for people to between Redmond and Bend or between Sisters and Bend. Even with the Tri-County average of just over 20 minutes, commute times in Central Oregon are substan-tially below the average com-mute times in Portland, Seat-tle, and many other urban centers.

TOPOGRAPHY & CLIMATE Every community in Central Oregon has its own variations of temperature and precipita-tion, 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 inch-es of precipitation and is only 60 miles from a region in the Cascades that receives over 120 inches. The geographical climate for Central Oregon is predominately High Desert. Summer tempera-tures range from an average high of 85° to a low of 44° Fahrenheit while winter temperatures

Distance from Bend Oregon City State Miles Drive Time

Portland OR 145 3 hrs, 3 min

Medford OR 189 4 hrs, 6 min minutes Olympia WA 251 4 hrs, 44 min utes Seattle WA 311 5 hrs, 42 min minutes Boise ID 323 6 hrs, 33 min inutes San Francisco CA 507 9 hrs, 0 min nutes Los Angeles CA 838 13 hrs, 48 min nutes Source: Mapquest

City Elevation La Pine 4,300’

Sunriver 4,100’

Bend 3,623’

Sisters 3,200’

Redmond 3,077’

Prineville 2,868’

Madras 2,242’

Warm Springs 1,575’

Source: U.S. Census Bureau

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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 winter months. Although specific climatic conditions vary somewhat with the area due to elevation and proximity to the Cascades, Bend, in the heart of Central Oregon exemplifies the spectacular weather of the area.

TOP 10 TAXPAYERS

Top 10 Taxpayers in 2012-13

Deschutes County Crook County Jefferson County

1 PacifiCorp (PPL) Property & Revenue Tax Manager Portland General Electric

2 Gas Transmission Northwest Corp. Brasada Ranch Development LLC Gas Transmission Northwest Corp.

3 Cascade Natural Gas Corp. Les Schwab Warehouse Center Inc. PacifiCorp (PPL)

4 Bend Cable Communication LLC (BendBroadband)

Clear Pine Moulding Inc. Bright Wood Corporation

5 Deschutes Brewery INC Les Schwab Tire center #11 Warm Springs Power Enterprises

6 Touchmark at Mount Bachelor Village LLC O’Ryan Ranches LLC Keith Investments/Manufacturing

7 CVSC LLC (Cascade Village Square Center) Ochoco Lumber Co. Safeway, Inc.

8 CenturyLink CenturyLink Burlington Northern Santa Fe Railroad

9 Suterra LLC WG Prineville LLC CenturyLink

10 Sunriver Resort Limited Partnership Gas Transmission NW Corp. Union Pacific Railroad

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

Bend Visitor & Convention Bureau 877-245-8484 www.visitbend.com

Crooked River Ranch Chamber 541-923-2679 www.crrchamber.com

Redmond Chamber 541-923-5191 www.visitredmondoregon.com

Central Oregon Visitors Assoc. (COVA) 800-800-8334 www.visitcentraloregon.com

La Pine Chamber 541-536-9771 wwwlapine.org

Sisters Area Chamber 541-549-0251 www.sisterscountry.com

Confederated Tribes of Warm Springs Business and Economic Development 541-553-3468 | www.warmsprings.com

Madras/Jefferson Co. Chamber 541-475-2350 www.madraschamber.com

Sunriver Chamber 541-593-8149 www.sunriverchamber.com

La Pine Industrial Group 541-536-9042

Bend, Oregon Weather Profile

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Average High (°F) 41° 46° 51° 57° 65° 74° 81° 80° 74° 64° 48° 41°

Average Low (°F) 21° 24° 26° 28° 34° 41° 45° 44° 37° 31° 27° 22°

Mean (°F) 32° 36° 38° 44° 50° 57° 64° 64° 55° 47° 38° 32°

Average Precipitation (inches) 1.8 1.0 0.9 0.6 0.8 0.9 0.5 0.6 0.5 0.7 1.6 2.0

Source: CountryStudies.us

Page 19: EDCO 2013 Central Pregon Profile

ECONOMIC DEVELOPMENT F O R C E N T R A L O R E G O N

705 SW Bonnett Way, Ste. #1000 | Bend OR 97702

www.edcoinfo.com | 541-388-3236 | 800-342-4135

Page 19 Last updated 11/4/2013 © Copyright 2013 EDCO

BUSINESS RESOURCES

Oregon Resources County Resources

Business Oregon www.oregon4biz.com Business recruitment, retention, and expansion

Accelerate Bend / Bend 2030 (541) 388-5505 Future vision for shaping Bend’s community and economy

Inventor’s Northwest (541) 317-1154

Bend Downtown Association www.downtownbend.org

NEW (Network of Entrepreneurial Women) www.networkwomen.org

City Club of Central Oregon www.cityclubco.com

Oregon Employer Council Central Oregon (541) 408-4557

City of Bend & BEDAB (Bend Economic Development Advisory Board) www.ci.bend.or.us

OMEP (Oregon Manufacturing Extension Partnership) www.omep.org Lean manufacturing and leadership training for business owners

Crook County www.co.crook.or.us

Worksource Bend (Oregon Employment Department) www.worksourceoregon.org

Deschutes County www.deschutes.org

Vocational Rehab (541) 388-6336

Jefferson County www.co.jefferson.or.us

Tri-County Resources Abilitree (541) 388-8103 | www.abilitree.org Advocacy and training for people with disabilities

HRACO (Human Resource Association of Central Oregon) www.HRCentralOregon.org

AdFed of Central Oregon (541) 385-1992 Marketing and advertising resource

Opportunity Knocks www.opp-knocks.org Confidential peer-to-peer problem solving and strategy

COCC (Central Oregon Community College) www.cocc.edu

OSU-Cascades (Oregon State University—Cascades) www.osucascades.edu

COIC (Central Oregon Intergovernmental Council) (541) 548-8163 | www.coic2.org Community and economic development services

SBDC (Small Business Development Center) (541) 383-7290 Free and confidential business advising

EDCO (Economic Development for Central Oregon) www.edcoinfo.com Comprehensive services for start-up, expanding and relocating companies

SCORE (Service Corps of Retired Executives) www.centraloregon.score.org No cost business consultation and mentorship

HiDEC (High Desert Enterprise Consortium) www.hidec.org Industry roundtables, lean training and business networking

Tech Alliance www.techallianceco.org MeetUp organization for high tech professionals in Central OR

Page 20: EDCO 2013 Central Pregon Profile

ECONOMIC DEVELOPMENT F O R C E N T R A L O R E G O N

705 SW Bonnett Way, Ste. #1000 | Bend OR 97702

www.edcoinfo.com | 541-388-3236 | 800-342-4135

Page 20 Last updated 11/4/2013 © Copyright 2013 EDCO

ABOUT EDCO

Origins

Economic Development for Central Oregon (EDCO) is a private, nonprofit mem-bership-based organization dedicated to building a strong and secure economic future for Central Oregon. EDCO was founded over 30 years ago when the timber-dependent region was hit especially hard by the national recession in the early ‘80s. City leaders recognized the need to develop an organization that would direct and lead efforts to diversify Central Oregon’s industrial base. Looking to attract jobs that provide income and create additional jobs in the economy, EDCO has focused on what are called traded sector companies. These are companies that make products or provide services for customers who are primarily outside Central Oregon and thus, help enlarge the regional economic pie. To most effectively reach Central Oregon's diverse communities, EDCO oper-ates five satellite offices in addition to its main office.

Focus

Today, EDCO has three key goals:

1. Recruit traded sector employers to the region. Most traded sector em-ployers come from these sectors: manufacturing, high-tech, and infor-mation services.

2. Assist existing Central Oregon companies to retain and grow the region’s company base. This involves helping companies expand and increasing their productivity and profitability.

3. Grow Central Oregon’s own local company base by helping its many entrepreneurs with business planning, access to capital, and access to human talent.

Board of Directors

EDCO is a membership organization with roughly half of its funding coming from public entities (counties and cities) and the other half from private companies. The organization is guided by a 36-member board drawn from the three coun-ties of Crook, Deschutes, and Jefferson, and represents a wide variety of indus-try sectors.

EDCO Offices

Main Office (Bend) 705 SW Bonnett Way, Ste. #1000 Bend, OR 97701 | 541-388-3236 Executive Director: Roger Lee Bend Manager: Nate LiaBraaten

Redmond 446 SW 7th Street Redmond, OR 97756 | 541-923-5223 Manager: Jon Stark

Sisters (Fall 2013) 520 E Cascade Street Sisters, OR 97759 Manager: Caprielle Lewis

La Pine (Fall 2013) 16345 Sixth Street. La Pine, OR 97759 Manager: Gerry Albert

Prineville/Crook County 510 SE Lynn Blvd. Prineville, OR 97754 | 541-233-2015 Manager: Russell Deboodt

Madras/Jefferson County 2028 NW Airport Way Madras, OR 97741 | 541-390-3121 Manager: Janet Brown

EDCO Platinum Members 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 Madras City of Prineville City of Redmond City of Sisters Crook County Deschutes County Home Federal Bank Jefferson County Mid Oregon Credit Union OSU-Cascades Campus Pacific Power Schwabe, Williamson & Wyatt St. Charles Health System U.S. Bank