Oregon

2013 Corporate Investment and Community Impact Awards

Trade & Industry Development magazine announced the recipients of its 8th Annual CiCi (Corporate Investment & Community Impact) Awards.

CiCi Awards

CiCi Awards (photo – tradeandindustrydev.com)

The 30 corporate recipients of the awards have announced plans for economic development projects that will collectively create and retain more than 35,250 jobs, and result in total corporate investment in excess of $16 billion.

“These major investments provide a clear snapshot of where and in which industries growth is occurring today,” said Scott D. Swoger, the magazine’s publisher and president of its parent company Due North Consulting, Inc. “Each of the investments to be made by Trade & Industry Development’s 8th Annual CiCi Award recipients will be transformational for the communities in which the projects will be located.”

The magazine lists the top 15 largest capital investments for development or expansion, and another 15 projects for the positive impact they will have on a community, regardless of the amount of money invested by the corporation.

The largest project in the corporate investment list is Intel’s $3 billion expansion in Hillsboro, Oregon.  The second and third largest projects were both by CF Industries Inc., which announced $2.1 billion and $1.7 billion expansions of their fertilizer plants in Donaldsonville, Louisiana, and Port Neal, Iowa.

South Carolina had two projects in the top 15 largest corporate investments – a $900 million expansion by BMW at its Spartanburg plant, and another one by Michelin in Anderson County.

“It’s great to see two South Carolina companies recognized out of a list of hundreds for their investments in the last year. I congratulate BMW and Michelin and thank them again for their continued investments in our state,” said South Carolina Secretary of Commerce Bobby Hitt.

As for the top 15 community impact projects listed by Trade & Industry Development magazine, the $6 billion project by Sempra Energy in Louisiana was easily the largest one, creating 740 jobs and retaining another 60 jobs.

Apple’s $304 million expansion in Austin, Texas topped the list in terms of the most number of jobs created (3,600). Amazon’s distribution center projects in Indiana and Kentucky also made the list.

You can see details about each project in both the CiCI Award categories here and here. 

Oregon Creates, Retains 430 Oracle Jobs With $1.4M Incentives

At Oracle Corporation’s Hillsboro facility, Oregon Governor John Kitzhaber met with company executives and praised their commitment to retaining and adding jobs in Oregon.

Oracle facility in Hillsboro, OR

Oracle facility in Hillsboro, OR (photo – M.O. Stevens/wikimedia)

The agreement, wherein the state is providing Oracle with $1.4 million in new incentives, ensures that the company will manufacture data center servers and storage systems in Hillsboro.

Luke Kowalski, Oracle vice president, said they will now be moving server production operations from Mexico to Hillsboro.

The deal saves 300 Oracle jobs in Oregon and creates another 130 new high paying Oracle jobs. As per the agreement, at least 78 of the new jobs must have more than 150 percent of the state’s average wage, which means these will be jobs that pay $60,000 per year or more.

“I want to recognize Oracle’s decision to expand in the United States rather than overseas, just the latest example of an industry leader choosing to ‘onshore’ in our state,” said Gov. Kitzhaber. “This is further proof of Oregon’s competitiveness in the global economy and a recognition that Oregon workers are second to none in their skills and training.”

In return, Oregon has agreed to provide Oracle with a forgivable loan of $750,000 from the Strategic Reserve Fund and another $649,000 from the Business Expansion Program for their Hillsboro expansion.

Combined, the awards are contingent upon the company creating 130 new full-time jobs while also retaining 300 full-time positions over a two-year period.

“Oracle is pleased to announce plans to grow our manufacturing presence in Oregon,” said Luke Kowalski, Oracle vice president. “By moving production of our industry-leading systems and servers from Mexico to Oracle’s Hillsboro facility we’ll be able to meet customer demand while bringing new technology jobs to the state of Oregon.”

The Redwood City, California-based Oracle Corp. (NASDAQ: ORCL) has more than 118,100 employees worldwide, and last year generated revenues of $ 37.12 billion for a net income of $10 billion from 390,000 customers.

Oracle has four facilities in Oregon, including two in Hillsboro. This particular complex in Hillsboro which is now getting the expansion came into Oracle’s possession as a part of the Sun Microsystems acquisition in 2009.

Pacific Institute Study – Sustainable Water Jobs

The Oakland, California-based Pacific Institute has released a study that analyzes the jobs created through sustainable water management and the potential for increasing opportunities for disadvantaged communities.

Sustainable Water Jobs - Pacific Institute

Sustainable Water Jobs – Pacific Institute (photo – pacinst.org)

The study, titled, “Sustainable Water Jobs: A National Assessment of Water-Related Green Job Opportunities,” identifies 136 different kinds of jobs involved in implementing sustainable water strategies, from plumbers to landscapers, engineers to irrigation specialists.

Thirty-seven of these job types are also projected to have high growth in the overall economy, with each projected to have more than 100,000 job openings across industries by 2020.

Jobs in 27 of the 37 occupations with 100,000 job openings by 2020 do not require bachelor’s or graduate degrees. They can be obtained with on-the-job training, associate’s degrees or technical training.

“This research indicates that water policy can expand demand for workers without bachelors or advanced degrees if occupational training programs and pathways to jobs are created,” said Eli Moore of the Pacific Institute. “However, the occupations with median wages below the national median demonstrate that measures to improve job quality must also be a priority.”

The study also found that an investment of $1 million in alternative water supply projects yields 10-15 jobs; in storm water management, 5-20 jobs; in urban conservation and efficiency, 12-22 jobs; in agricultural efficiency and quality, 14.6 jobs; and in restoration and remediation, 10-72 jobs.

The report is accompanied by six case studies including Groundwork Portland in Portland, Oregon, and Sustainable South Bronx in the Bronx, New York.

The BEST Academy at Sustainable South Bronx has trained people to work in river restoration, construction of rain gardens, and other water related fields. “Preparing people who need work to install and maintain water-saving devices and projects can heal our communities environmentally and economically,” said Annette Williams, director of BEST Academy.

The report also provides some interesting data on the demographics of the water jobs workforce. The racial make-up ranges from the predominantly white agricultural managers to the disproportionately Latino and African American laborers and truck drivers. Women are underrepresented in all but four of the 15 occupations for which data was available.

The study conclusion says that “the existing training and education programs preparing workers with the skills needed in sustainable water fields appear nascent and small-scale.”

One of their recommendations is that water utilities, state water agencies, planning departments and other public entities funding and managing sustainable water projects should implement “high-road” strategies that consider job quality, training, and targeted hiring as an integral component of project design and implementation.

This should include local hiring and minority hiring requirements and incentives that increase contracting and hiring with individuals from local and disadvantaged communities.

Read the full Sustainable Water Jobs study or the executive summary.

ConAgra Foods Lamb Weston gets $350K from Oregon for $200M Expansion

Business Oregon Director Tim McCabe was joined by local officials and ConAgra Foods Lamb Weston executives as he presented them with a $350,000 check for a forgivable loan from the Governor’s Strategic Reserve Fund.

ConAgra Foods Lamb Weston

ConAgra Foods Lamb Weston (photo – lambweston.com)

ConAgra Foods, Inc., (NYSE:CAG) had announced back in Nov 2012 that it would be investing $200 million for an expansion of its Lamb Weston frozen potato facility in Boardman, OR.

“We are excited about ConAgra Foods’ commitment to expand its operations in the Columbia Basin,” said Oregon Governor John Kitzhaber. “This is a great example of a successful partnership between the State of Oregon, the Port of Morrow, the city of Boardman and Morrow County to help ensure that a major employer expands and can continue to be successful in the region for years to come.”

The $350,000 award is contingent upon the company creating approximately 100 new full-time jobs over a two-year period. The expansion is also expected to create another 200 construction jobs. The 192,000-square-foot addition is expected to begin in early 2013, with completion slated for 2014.

In addition to the SRF loan, city and county officials extended enterprise zone benefits to the company for the expansion, and Business Oregon’s Infrastructure Finance Authority expects to work with the Port of Morrow on infrastructure improvements at the site.

“This expansion also reflects our confidence in the region’s growers to deliver high-quality potatoes while working with state and local government to ensure long-term, sustainable growing practices,” said Rick Martin, vice president, Global Operations, ConAgra Foods Lamb Weston. “We specifically appreciate the efforts and support of the Columbia River Enterprise Zone, Port of Morrow, city of Boardman, Morrow County and the State of Oregon and are proud to be an active part of this thriving community.”

ConAgra Foods Lamb Weston is one of the largest employers in the Columbia River Basin. The company operates seven facilities in the region and employs nearly 4,500 people, including 500 employees each in Boardman and Hermiston, Oregon.

With easy access to the Port of Morrow, the Boardman facility is strategically situated to support both domestic and international growth. Proximity to prime growing and shipping operations also helps reduce transportation needs, supporting Lamb Weston’s efforts to shrink its carbon footprint.

Microsoft to Open Five New Retail Stores in US

Microsoft has announced that it will be opening five new retail store locations by this summer. This is in addition to the six stores the company announced it was opening late last year.

Microsoft Store

Microsoft Store (photo – microsoft.com)

The locations for the five new stores are as follows:-

- Natick Mall, Natick, Massachusetts;

- Ala Moana Center, Honolulu, Hawaii;

- Pioneer Place, Portland, Oregon;

- The Somerset Collection, Troy, Michigan; and

- Woodfield Mall, Schaumburg, Illinois.

In a blog post announcing these new locations, Jonathan Adashek, General Manager, Communications Strategy, Sales & Marketing Services Group, Microsoft, said that the exact dates for these store openings will be announced in the coming weeks.

“Please keep an eye out as we continue to open Microsoft retail stores near you – we can’t wait to welcome you into the Microsoft retail stores!,” added Adashek.

When making the Dec 2012 announcement, Adshek had noted that Microsoft was willing to adjust its strategy, and open additional stores to “deliver the choice, value and service our Microsoft customers have come to expect.”

Apart from the associate jobs created, taxes generated and the spillover to other businesses in the area, there are quite a few community development benefits related to a Microsoft Store.

For instance, every Microsoft retail store has a dedicated “Community Development Specialist” position. This employee works with local organizations to arrange in-store events and activities that help drive awareness of their causes within the community, while offering the opportunity to learn new technology skills.

Microsoft retail stores host events such as local chamber of commerce meetings and workshops for women re-entering the workforce.

Also, Microsoft celebrates each new retail store opening with a donation of more than $1 million in software grants to selected local organizations that will help create opportunities for local youth through technology, training and experiences that empower them to realize their full potential.

Last year, when Microsoft opened a retail store with 50 new jobs at the Walt Whitman Shops in Huntington, New York, they donated $1.5 million in software grants to local community organizations. As per the microsoftstore.com website, a total of $22 million has been similarly donated in communities where new stores have opened.

Last year, Microsoft opened 51 new Full-line and Specialty stores, including the company’s first international stores in Canada in Edmonton, Burnaby, Vancouver and Toronto. The London store opening in the United Kingdom next month will be Microsoft’s first store outside North America.

Brookings Top Ten Most Innovative Economic Development Initiatives

The Brookings Institution and Rockefeller Foundation have released the second annual list of top ten initiatives around the country that show the most promise for creating jobs, growing regional economies, and boosting global competitiveness in 2013.

Top 10 list

Top 10 list (photo – sam_churchill/flickr)

The list includes two projects (one metro and one state) in each of the following five categories – low carbon, exports, human capital, innovation, and governance.

Exports:-

Metro – Portland, Oregon: Metropolitan Export Plan – An ambitious strategy to help business and distinctive clusters of firms access global markets.

State – Florida: Office of Freight Logistics and Passenger Operations – A new department to coordinate and prioritize freight and port strategies and investments.

Low Carbon:-

Metro – Chicago, IL: “Retrofit Chicago” – Leveraging private investment in a new Infrastructure Trust for the energy retrofit of public buildings.

State – California: Cap-and-Trade – The launch of a carbon trading system to lower carbon emissions and further demarcate the state as the center of the American clean economy.

Innovation:-

Metro – Youngstown, OH: National Additive Manufacturing Innovation Institute – A new regional manufacturing initiative to exploit the full opportunities brought by 3D printing.

State – Massachusetts: Top-USA Massachusetts – A research exchange between Boston-area and Brazilian research institutions.

Human Capital:-

Metro – San Antonio, TX: Pre-K Expansion – A commitment to expand pre-k education to give every student a strong start on the path to secondary and post-secondary success.

State – Kansas: Career and Technical Education Initiative – State incentives for enrollment in and completion of local technical education and community college classes.

Governance:-

Metro – Los Angeles, CA: America Fast Forward – Metro-federal partnership in accelerated build-out of transit expansion.

State – California, Washington, Oregon: West Coast Infrastructure Exchange – Three-state initiative to coordinate cross-state infrastructure investments

This innovations list was put out by the Brookings-Rockefeller Project on State and Metropolitan Innovation, which presents fiscally-responsible state policies and practical metropolitan-led solutions that leaders can use to move toward the next economy.

“These ten innovations represent extraordinary examples of how communities are building on their distinctive advantages to better position themselves in a global marketplace that is fiercely competitive and undergoing massive change,” said Judith Rodin, president of The Rockefeller Foundation.

Read more about each of the aforementioned projects on the Brookings.edu site.

Nike Expansion Forces Special Legislative Session in Oregon

The Oregon Legislature will meet in Special Session on Dec 14, 2012 to consider authorizing Oregon Governor John Kitzhaber to enter into agreements with companies committing to significant job growth and investment in Oregon.

Nike Oregon

Nike Oregon (photo – nike.com)

The special session was apparently called by the Governor due to the urgency and importance of keeping and adding Nike jobs in Oregon.

“With legislative action this week, Oregon can secure high wage jobs and hundreds of millions of dollars of new private investment in the next five years,” said Gov. Kitzhaber. “In fact, Nike is ready to commit to a significant expansion of its Oregon operations if the state can provide certainty we won’t change tax rules after they make a new investment. It’s an easy call and a perfect fit with our strategy to attract and retain companies that create jobs and boost per capita income.”

This carrot and stick approach by Nike, which has told the Governor that other states have been angling for the expansion, has forced the state to consider passage of a new bill called the Economic Impact Investment Act of 2012.

At stake is the proposed Nike expansion, reportedly involving a $400 million investment and more than 2,000 permanent new jobs, which would be a huge win for any state.

A recent analysis by AECOM, a global professional services firm, estimates the economic impact of a potential expansion to be more than $2 billion a year and more than 12,000 jobs by 2020 (direct, indirect and induced). Construction alone accounts for about $440 million and more than 2,900 jobs.

If approved, the Economic Impact Investment Act would empower the Governor to enter into qualifying investment contracts with any company committing to a minimum of 500 jobs and $150 million in capital investment over five years.

“Private sector job growth is driving Oregon’s economic recovery, but state government has an important role to play in helping create a business climate to accelerate that growth,” said Oregon Business Association president Ryan Deckert. “We’ve been focused on finding ways to boost wages, and the Economic Impact Investment Act will be a powerful tool to drive per capita income up in Oregon.”

The fact that the Governor had to call a special session weeks before the legislature was scheduled to meet anyway is indicative of the fact that it’s crunch time, and Nike is close to making and announcing a final site selection decision on the matter very soon.

Beaverton, Oregon-based Nike, Inc. (NYSE:NKE) is the world’s leading athletic footwear and sports equipment manufacturer, and has 44,000 employees around the world. It was founded in Oregon, and is one of the two Fortune 500 companies with headquarters in Oregon.

Greater Portland Plans to Create 113,400 Jobs by Doubling Exports

This could be one of those rare instances where someone took a think-tank report seriously enough to do something about it, and in the process the Greater Portland region in Oregon may just have bumped into 113,400 new jobs.

Export jobs

Photo – trade.gov

The Portland Metro Export Initiative (MEI) was announced back in May 2012 based on a Brookings Institution report. The broad aim was to create jobs by doubling exports in five years.

That MEI was a serious effort was underlined by the fact that the initiative was to be co-chaired by Jill Eiland, Northwest Corporate Affairs Manager for Intel, along with the Portland Metro Council president Tom Hughes.

MEI was housed under Greater Portland Inc., the region’s economic development organization.

At an export conference last week, the co-chairs made the first detailed presentation of what exactly MEI would be doing to double the exports and what it would mean for Greater Portland.

All put together, MEI plans to spend almost $300,000 on various programs to boost exports. This amount does not include in-kind contributions that will be made by private sector partners. The original plan called for $200,000 in annual funding for various programs and administrative spending, for a period of three years.

They expect to double exports in five years from the current $21 billion to $42 billion. Every billion in new exports will create 5,400 new jobs in Greater Portland, which works out to a total of 113,400 new jobs.

Brookings chose the Portland area as one of three pilot projects to see whether they could double exports in five years.  The plan (pdf) involves four strategies:-

  1. Leverage Primary Exporters – Establish a dedicated economic development team focused on maintaining and protecting the location advantages that brought the computer and electronics industry to Greater Portland. Even a marginal increase in export value from industry heavyweights such as Intel creates a massive ripple effect in the rest of our economy.
  2. Catalyze Under-Exporters – MEI will identify a limited set (approximately 10) of mid to large-size, under-exporting advanced manufacturing companies with the greatest potential for export growth and help them in various ways.
  3. Build a Healthy Export Pipeline – To leverage and connect existing export services and fill regional service gaps for regional SMEs, the MEI will develop a single point-of-entry web portal directing users to appropriate funding opportunities, programs, services, or agencies based on a simple and accessible export roadmap.
  4. Brand Marketing for Greater Portland – MEI will roll out the “We Build Green Cities” campaign for exports in clean tech, and strategically market regional clean tech companies and products as solutions for global challenges.

How successful they will be at creating 113,400 jobs on a $300,000 budget remains to be seen. But the fact is that they are doing it very seriously, so Greater Portland and Oregon will surely see some benefits.

Economic Development Efforts Underway in Wilsonville, Oregon

www.ci.wilsonville.or.us/

The region of Wilsonville, Oregon is planning on advancing a variety of economic development efforts.

The city council is currently crafting up a plan for retaining and expanding businesses in the Wilsonville region. The city council is also considering bringing back the sporting giant called Cabela’s. A work plan was approved as the first economic development strategy would be adopted.

The next step is to create a task force which will make a variety of recommendations for the best possible businesses for the area in Wilsonville. The type of incentives offered and retention strategies will also be discussed with the task force. Meetings will be held within a time frame of 4 months and recommendations are expected to be made around February of 2013.

The city council wants to immediately make a decision about bringing the Cabela’s business as it will be located in close proximity to the Argyle Square. The current land is under an agricultural holding zone and is meant to be utilized for industrial use. The idea of bringing in Cabela’s started in 2010 when a myriad of representatives visited the site which was located close to a local Target. After 2 years passed, the staff in Wilsonville contacted Cabela’s to ask if they were still interested in the location.

The City Manager also agreed to discuss the situation with the Metro in order to determine the options for the zoned land. The City Council also needs questions answered about the infrastructure and traffic before development can occur on the land. A Councilor named Richard Goddard elaborates on how the leaders should take a proactive role in moving the economic development projects forward instead of having pages of paper sitting on a desk for a long time.

Overall, the economic development projects are going to be important to the community and region in Wilsonville, Oregon.

Read More

US EDA, Portland State Univ. Come Up With Triple Bottom Line Tool

The traditional way to measure the effectiveness of an economic development project is to look at the dollars invested and the jobs created or retained. But not anymore, because the U.S. Economic development Administration (EDA) is officially asking ED professionals and decision makers to use the new Triple Bottom Line (TBL) Tool cooked up by Portland State University in Oregon with funding and input provided by the EDA.

Triple Bottom Line (TBL) tool

Triple Bottom Line (TBL) tool (Photo – commerce.gov)

The TBL tool is a web-based application that takes into account a broad array of economic, environmental, and social impacts to more fully evaluate the potential impact of projects.

The TBL Tool applies to both construction investments and non-construction investments, and will work in most locations in all 50 states as long as a specific project location is specified.

The scores the application hands out are based on user-defined information and national data sets, so due diligence should be conducted to ensure that project information is accurate. If green building practices are claimed, a follow-up to confirm the claim is in order.    

Matt Erskine, Acting Assistant Secretary of Commerce for Economic Development, said in a blog post that, “The new TBL Tool developed through EDA’s investment represents a significant step forward for expanding the application of the concept by planners, nonprofits, community organizations, and governments to help support the assessment and decision making of critical development decisions.”

“By using the analytical tools now available on the TBL website, any organization can measure the full range of outputs of any initiative,” added Erskine.

The beta version of the TBL tool was developed by a team led by Dr. Janet Hammer from Portland State University, in collaboration with Maggie McCullough from PolicyMap, Dr. Gary Pivo from the University of Arizona/Harvard University Responsible Property Investing Center, and Dr. Ira Goldstein from The Reinvestment Fund.

To start with, triple bottom line economic development is defined as programs, policies, or activities designed to create or retain jobs and wealth that contribute to community well-being and sustainability over time. It is distinct from economic growth, which may or may not contribute to community well-being. The TBL approach is used by companies including General Electric, Unilever, Proctor and Gamble and many others.

The TBL tool has been developed to align with current EDA 900 application requirements as follows:-

CEDS – Tool asks whether project aligns with regional economic development strategy.

Budget – Tool asks for total project costs.

Leverage – Tool calculates leveraged dollars.

Distress – Tool identifies high need areas, though uses a different measure.

Beneficiaries – Tool identifies industry by NAICS, jobs created and retained.

-Tool has question regarding relocation and displacement

- Environmental Requirements Tool identifies presence of eight sensitive natural resources on site

and proximity to TRI facility. Also requests information on historic and cultural features and notes if project involves remediation.

- Some fit with metropolitan review in question regarding adequate capacity of key infrastructure.

- Operation and maintenance measure would provide some information that may be helpful here as well as fit with strategic priorities. 

To make sure the tool is relevant and user friendly, the team held seven focus groups between January and March 2011 with economic development professionals who are members of the International Economic Development Council (IEDC) or the National Association of Development Organizations (NADO) in order to learn more about current decision-making practices and hear feedback on the draft tool design.

They conducted five interviews with EDA regional staff in March 2011 to better understand current practice regarding triple bottom line in economic development. An online survey of approximately 500 economic development practitioners was conducted in April and May of 2011 to identify current investment practices and priorities.

It’s a beta version, so they’re still collecting feedback via an online survey as well as through more extensive testing and collaborative discussion with a group of testing partners.

You can access the Triple Bottom Line tool at tbltool.org. 

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