May 2007


1. County moves toward Business Income Tax relief

TRANSPORTATION/FREIGHT MOBILITY
2. Study finds lack of transportation investments costs money, jobs
3. Alternatives considered for Columbia River Crossing project
4. Army Corps of Engineers announces increase in channel deepening funding


EDUCATION/WORKFORCE
5. WorkSource Portland Metro retools to better serve employers


ECONOMIC DEVELOPMENT/CLUSTER COMPETITIVENESS
6. Hillsboro selected for nation's largest solar production facility
7. Oregon: High tech's second home
8. OHSU startup gets $20 million


County moves toward Business Income Tax relief

On Thursday, April 12, the Multnomah County Board of Commissioners voted unanimously to increase the gross receipts exemption and owners compensation deduction to more closely align the county's business income tax (BIT) with the changes recently approved by the city council to Portland's business license fee (BLF).

"We want to thank the Multnomah County Commission for their leadership on this issue," said Sandra McDonough, president and CEO of the Alliance. "Getting the city to reduce taxes on businesses was a huge step. Getting the county to follow suit is just as important. This is a great day for businesses in the county and the city."

To read more, click here.


TRANSPORTATION/FREIGHT MOBILITY

Study finds lack of transportation investments costs money, jobs

Without additional investment in the state's critical transportation infrastructure, Oregon's economy could lose $1.7 billion annually and 16,000 jobs by 2025, according to a new study released by the Alliance, in conjunction with the Oregon Business Council, other business associations, and transportation agencies from around the state.

The Cost of Highway Limitations and Travel Delay to Oregon's Economy study was released on March 22. A partnership of the Oregon Business Council, Portland Business Alliance, Oregon Department of Transportation, Port of Portland, Westside Economic Development Alliance, and Associated Oregon Industries contracted with the Economic Development Research Group to conduct the congestion study. The Oregon Business Plan and the Portland-Vanouver Regional Business Plan called for a statewide congestion study to look at how investments in transportation infrastructure impact Oregon businesses and the state's economy.

"The study is designed to provide Oregon business leaders, elected officials and citizens better information regarding the relationship between investments in transportation, the state's quality of life and economic vitality," said Steve Clark, Oregon Business Plan Transportation Committee co-chairman and one of the study's business sponsors. "It is a clear call to action that more investment in the transportation system is needed now."

The study found that Oregon's economy and job base are more transportation dependent than most other states. Oregon has the ninth most trade dependent economy in the country with more than 400,000, or 1 in 5 jobs, either transportation reliant or transportation dependent according to the analysis.

To address the issues highlighted by the study, a diverse group of Oregon business leaders from across the state have come together to advocate for additional investment in the state's roads and highways this legislative session. (In order to raise awareness about the transportation issues Oregon faces and the actions needed by legislators, interested business leaders are encouraged to talk to their legislators, write to their local newspapers, and facilitate any other communication about this issue.)

The Oregon Business Plan calls for an investment of $300-350 million to begin to address the growing gap between available funds and the most critical unmet system needs. The Oregon Transportation Plan has identified annual needs of $490 million for the state system, with city and county needs more than doubling that figure. A coalition of business leaders is working with other stakeholder in Salem to craft a proposal that can gain support this session, as well as develop a long-term strategy for sustainable transportation funding.

The full study and executive summary can be found on the Alliance web site at www.portlandalliance.com.


Alternatives considered for Columbia River Crossing project

The Columbia River Crossing project is studying two bridge options and two transit options in a process to identify the best combination of options that improve mobility and safety and decrease congestion in the five-mile project area between State Route 500 in Vancouver and Columbia Blvd. in Portland. The result of this study will be a Draft Environmental Impact Statement (DEIS), which is required under federal law.

In late 2006, the project staff recommended one bridge option and two transit options move forward for further analysis along with a no-build option. An additional bridge option was added in March 2007 as a result of the Task Force's recommendation.

The bridge and transit options have been packaged into four different alternatives. The CRC project team is working to define and refine the details of the alternatives to allow additional study and analysis and complete the DEIS.

For more information about the Columbia River Crossing project, visit http://www.columbiarivercrossing.org


Army Corps of Engineers announces increase in channel deepening funding

In March the U.S. Army Corps of Engineers announced that they will double the amount of money available to the channel deepening project along the Columbia River. This takes the funding for fiscal year 2007 from $15 million to $30 million.

The project will deepen the main Columbia River navigation channel from its current depth of 40 feet to 43 feet in order to allow for larger vessels that constitute 80 percent of the transpacific trade. This will help increase the area's competitive edge on the world market.

For more information go to www.channeldeepening.com.


EDUCATION/WORKFORCE

WorkSource Portland Metro retools to better serve employers

by Andrew McGough
If you ask businesses what they want most from the public workforce system, you hear two things: qualified workers and a single point of contact (with accompanying accountability). These sound like simple requests. But the multitude of organizations, programs and services engaged in workforce development makes the answer anything but simple.

New efforts spearheaded by the Portland-based local Workforce Investment Board, staffed by Worksystems, Inc. and the Oregon Employment Department, aim to transform the regional workforce system to respond to these needs and position the region to grow and manage its human capital.

Effective March 1, 2007, WorkSource Portland Metro has a single phone number (503.257.HIRE) for employers in Multnomah, Washington and Clackamas counties to access all available services and resources, including recruitment, hiring, training and retention services. The single phone number enhances convenience for employers and promotes accountability by creating a clear connection between employer requests and system responsiveness.

Regional employers can now receive personal service from a dedicated account representative who knows their industry. Account representatives may recruit directly from schools and training institutions, or from non-traditional candidate pools. As they search for candidates, industry-specific account representatives are uniquely positioned to identify current and long-term hiring needs and skills gaps.

A third new development is that the Workforce Investment Board and the Oregon Employment Department are working with local educators to develop ways to enter emerging graduates into the iMatch system. This expands the size and quality of the talent pool. It also enables the region to better understand the skills of available workers, which is essential for ensuring that the region's skill development efforts meet the short and long-term needs of the regional economy.

Andrew McGough is Executive Director of Worksystems, Inc.


ECONOMIC DEVELOPMENT/CLUSTER COMPETITIVENESS

Hillsboro selected for nation's largest solar production facility

In March, SolarWorld Group, headquartered in Germany, announced that it had selected Hillsboro as the site for its newest manufacturing plant. The plant, opening in summer 2007, will be the largest plant of its kind by 2009. The company cited the region's highly skilled technology workers and Oregon's environmentally friendly attitude as primary reasons for selecting Hillsboro.

SolarWorld will produce solar cells and wafers at the new plant, and plans to invest about $400 million to convert an existing facility that has been idle for 10 years. The company plans to hire several hundred employees when the plant opens.

Read more, click here.


Oregon: High tech's second home

A recent article in The Oregonian dubbed the state as "High Tech's Second Home," citing the presence companies such as Intel, IBM, Hewlett-Packard, Google, Yahoo and Dell which have established offices in Oregon.

Favorable corporate taxes, a relatively low cost of doing business, abundant electricity and a history of tech success are attracting these companies to the region, according to the article. Even without establishing headquarters here, these out-of-state companies are a stabilizing force for Oregon's high tech industry.

Oregon is going to be more assertive in recruiting big name companies to open offices throughout the state, the Governor's deputy chief of staff, Allen Alley, told the newspaper.

"I think it's being recognized that it's probably the last affordable place on the West Coast," said Alley.

Click here to read the Oregonian story.


OHSU startup gets $20 million

ProteoGenix, an Oregon Health & Science University spinoff biotech company which has developed a test that could displace amniocentesis, has taken a long step toward commercial viability.

ProteoGenix has tied down a $20 million commitment of funds from a syndicate of venture capital firms and is moving from its incubator space in a laboratory on the OHSU Marquam Hill campus to its own leased facility.

The company's diagnostic products hold the promise of stemming the rising tide of premature births by making it simple, fast and easy to detect the most common pregnancy-related infections early enough for effective treatment.

The venture capital syndicate consists of Burrill & Company of San Francisco; New Leaf Venture Partners of New York City and Menlo Park, Calif.; and TPG Ventures, Inc. of Menlo Park, an affiliate of the Texas Pacific Group. The commitment to ProteoGenix equals about one-fifth of the total amount of venture capital ($111 million) received by all Oregon businesses in 2006.

For more information, go to www.proteogenix.com.

EVENTS

Northwest Intermodal Conference, May 20-22

The Northwest Intermodal Conference provides unique, targeted opportunities to mix with peers and customers in addition to the forums and panels, including special networking dinners, breakfast roundtables, a golf tournament and much more. Details can be found at http://www.northwestintermodal.com.

Washington State University Vancouver forum, May 23

The School of Economic Sciences and Friends of the School of Economic Sciences presents a forum called "Transportation: Economic Incentives and Infrastructure in SW Washington." Featured panelists include Chancellor Hal Dengerink and Professor Ken Casavant. For further information, contact Bruce Prenguber at 360.696.3888 or email bruce@globalwiseinc.com.

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RBP@portlandalliance.com • Regional Business Plan