Central Oregon Profile © Copyright 2015 EDCO

2015 CENTRAL OREGON Quick Reference 1 Top Employers & Industries 14 Telecommunications PROFILE 3 Wage Information 14 Services 4 Industry Mix 15 Transportation Economic Development for Central Oregon 5 Business Costs 17 Travel Distances, Commuting 7 Employment Trends 17 Topography & Climate 705 SW Bonnett Way, Ste. #1000 7 Housing / Real Estate 18 Top 10 Taxpayers Bend, OR. 97702. 9 Valuations 18 Business Resources www.edcoinfo.com 10 Population 19 Entrepreneurial Landscape 541.388.3236 | 800.342.4135 11 Education 20 About EDCO 13 Utilities 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’s population growth over the last two decades; in fact, Deschutes County is among the fastest growing areas of the country over the past year. A lesser known fact is that our region has also topped the state in job growth over the past year and over the past ten years, creating a region that's characterized by dynamic small businesses and entrepreneurial activity. The region boasts strong clusters in high technology (software, hardware and energy), advanced manufacturing, biosciences, renewable energy, brewing & distilling, and recreation equipment.

For most new residents, Central Oregon is a lifestyle choice, offering a friendly environment, year round recreation options, and world class amenities—all with the benefits of a hassle-free, small town feel. 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 sacrifice in human talent, quality health care, transportation or telecommunications infrastructure. What sets Central Oregon apart from other lifestyle cities like Aspen/Vail, CO; Sun Valley, ID; Jackson Hole, WY or Lake Tahoe is that it’s filled with middle-class working people who are not escaping from the rest of the world, but building and living their dreams here. Dreams of a quality education for their chil- dren. Dreams of launching their own business. Dreams of short commutes and breathtaking land- scapes. Dreams of interesting, challenging work without the big-city hassle.

TOP EMPLOYERS & INDUSTRIES

According to the Oregon Employment Department, over 75% of Oregon firms have nine or fewer employees and the average firm employs 15 people. Recent research released by Dun & Bradstreet and American Express said that 99.1% of businesses in Oregon were less than $10 million in revenues. To an even greater extent than the state, Central Oregon's business environment is typified by innovative, small companies, producing niche-market products and services.

Still, a number of large employers operate successfully here, tapping into Central Oregon’s ever-expanding workforce, overall low cost of doing business and business-friendly local governments. Year over year, the region’s Top 50 Private Employers collectively added 1,100 jobs, and thereby employed nearly 20,000 Central Oregonians. Large employers include some distinct groups including:

 Advanced Manufacturing  Bioscience (pharmaceuticals, medical device)  Brewing & Distilling (craft beer, cider, spirits, tea)  Building Products (doors, windows, molding, furniture)  High Technology (electronics, software, data centers)  Outdoor Gear & Apparel

Healthcare is led by St. Charles Medical Center, the largest private employer in the region. St. Charles owns and operates hospitals in Bend, Redmond Madras, and Prineville. 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, Les Schwab Tires, Bank of the Cas- cades, Deschutes Brewery, 10 Barrel Brewing and

Administrative/ call centers including Consumer Cellular, IBEX Global and Navis are also among the largest private employers in the tri-county area Employment in tourism and hospitality reflects the importance of this sector to the region. Central Oregon has the largest concentra- tion of destination resorts in the Pacific Northwest and includes Riverhouse convention center, Sunriver Resort, Mt. Bachelor, Eagle Crest (Resort Acquisition Partners), Kah Nee Ta Resort, and Indian Head Casino.

Central Oregon’s Top 50 Private Employers Employees 2014 Rank 2015 Rank Employer 2013 2014 2015 1 1 St. Charles Medical Center regionwide 2,848 2,740 2,830 3 2 Sunriver Resort 900 900 900 2 3 Les Schwab regionwide (HQ & CO stores) N/A 905 880 5 4 Bright Wood Corporation regionwide 647 746 870 4 5 Mt. Bachelor 743 756 775 9 6 McDonald's regionwide 518 620 668 8 7 Bend Memorial Clinic regionwide 609 639 652 6 8 IBEX 650 700 595 10 9 Safeway regionwide 557 584 590 14 10 Consumer Cellular 202 402 585 7 11 WalMart regionwide 787 686 574 11 12 Fred Meyer regionwide 510 538 528 12 13 Jeld Wen Windows and Doors 460 480 460 13 14 Northview Hotel Group 400 450 450 15 15 Opportunity Foundation 406 384 392 16 16 Black Butte Ranch 121 360 360 18 17 Central Oregon Trucking 260 286 312 23 18 PCC Schlosser 242 243 305 17 19 Deschutes Brewery 287 290 295 20 20 Costco 283 280 285 22 21 Bi-Mart regionwide 238 246 265 24 22 Bend Research 254 242 264 26 23 Lowe's regionwide 219 229 262 19 24 BendBroadband (incl. Zolo Media & The Vault) 285 285 261 29 25 Mosaic Medical 156 218 243 21 26 Bank of the Cascades regionwide 249 259 237 27 27 Home Depot regionwide 226 225 235 30 28 Contact Industries 180 215 225 28 29 Albertson's regionwide 211 218 216 34 30 The Center (Ortho/Neuro Care & Research) 193 196 213 38 31 Navis 179 182 211 25 31 Athletic Club of Bend 250 240 200 32 33 The Riverhouse 193 200 200 31 33 Kah Nee Ta Resort 126 200 200 33 35 Neighbor Impact regionwide 193 196 196 39 35 G5 121 170 192 35 37 Keith Manufacturing Co. 170 190 190 36 37 The Bulletin 190 190 190 41 39 MODA 165 160 180 49 40 Touchmark at Mt. Bachelor Village LLC 94 135 178 37 41 Brasada Ranch 111 187 172 39 42 Nosler N/A 170 170 40 43 Indian Head Casino 166 168 168 N/A 43 Epic Air N/A N/A 160 45 45 Medline Renewal 130 157 153 47 46 Hooker Creek Companies 150 150 150 50 47 Ray's Food Place regionwide 253 135 143 41 48 US Bank regionwide N/A 164 126 48 49 Praxis Medical Group (formerly High Lakes) 80 101 119 N/A 50 Rebound Physical Therapy N/A N/A 110

Page 2 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO WAGES INFORMATION FOR SELECT OCCUPATIONS Below are average hourly wages in Oregon, Washington, and California. Central Oregon wages are typically below those of Oregon, often 10 to 20%. Wages in Washington are typically higher than Oregon while California wages routinely run at least 20% higher than those in Oregon:

Wage Comparison for Selected Occupations (annual average, $ per hour) Occupation OR Central OR CA WA Accountant/Auditor 31.05 30.89 37.50 33.26 Architect, except Landscape & Naval 35.01 37.38 45.31 36.02 Carpenter 21.25 21.90 26.88 24.04 Chef & Head Cook 18.80 18.95 23.03 22.86 Clinical, Counseling, and School Psychologist 34.63 29.62 39.13 33.29 Computer-Controlled Machine Tool Operator 19.10 18.92 19.09 33.16 Computer Programmer 35.39 38.70 43.51 54.15 Computer User Support Specialist 22.76 23.20 28.25 27.58 Computer Systems Analyst 40.33 34.96 44.95 45.93 Customer Service Representative 16.75 14.35 19.14 17.70 Dental Hygienist 38.83 36.50 45.68 45.04 Electrician 33.24 26.77 30.97 30.48 Electrical Engineer 40.55 28.56 54.53 47.80 Financial Manager 51.61 53.54 67.73 56.45 Food Service Manager 22.62 22.14 25.40 24.67 General & Operations Manager 46.94 41.29 60.66 58.61 Graphic Designer 22.90 20.68 27.76 26.63 Industrial Machinery Mechanic 26.32 25.32 27.53 27.71 Industrial Production Manager 44.08 40.31 52.44 49.34 Landscape Architect 31.58 n/a 39.54 30.83 Marketing Manager 47.58 34.88 74.20 65.64 Mechanical Engineer 40.13 33.37 47.58 44.21 Medical Transcriptionist 18.51 18.74 21.48 17.69 Middle School Teacher, except Special Ed 27.20 24.67 32.78 29.37 Multimedia Artist & Animator 30.18 n/a 42.88 37.40 Network and Computer Systems Administrator 33.18 32.66 41.62 39.12 Paralegal 27.61 24.23 29.22 26.12 Physical Therapist 38.42 35.48 44.42 40.21 Police/Sheriff Patrol Officer 30.04 30.10 41.69 34.22 Receptionist 13.43 12.79 14.57 14.85 Registered Nurse 39.17 39.13 47.17 37.17 Secretary/Administrative Assistant, except Legal, Medical, & Executive 16.74 15.26 18.62 18.45 Software Developer, Applications 42.79 36.08 54.56 54.18 Software Developer, Systems Software 48.42 n/a 57.97 53.32 Supervisor, Administrative & Office Workers 24.44 23.78 28.26 27.15 Supervisor, Retail Sales Workers 18.58 19.39 21.48 21.87 Truck Driver, Heavy & Tractor-Trailer 19.14 19.06 20.78 20.95 Urban/Regional Planner 37.53 41.39 39.36 35.70 Sources: Oregon Employment Department, Washington State Employment Security Department, and California Employment Develop- ment Department. The data used to create these estimates came from the Occupational Employment Survey. Data is for Q1 2014 – the most recent data available.

Page 3 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO Covered employment & payroll Below are the employment by sector, payroll, and average annual pay in the tri-county 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.

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.

Deschutes County Crook County Jefferson County Central Oregon Industry Employees Payroll Avg. Pay Employees Payroll Avg. Pay Employees Payroll Avg. Pay Employees Payroll Avg. Pay Total private coverage 58,758 $ 2,224,607,870 $ 37,860 4,612 $ 187,137,202 $ 40,576 3,920 $ 125,377,351 $ 31,984 67,290 $ 2,537,122,423 $37,704.30 Nat. resources & mining 479 20,471,603 42,738 213 7,589,601 35,631 455 14,267,978 31,358 1,147 42,329,182 36,904 Construction 4,311 182,547,329 42,344 244 11,321,832 46,400 68 2,177,329 32,019 4,623 196,046,490 42,407 Manufacturing 4,475 188,139,276 42,042 786 29,577,894 37,630 1,007 40,079,066 39,800 6,268 257,796,236 41,129 Wholesale trade 1,734 91,051,334 52,509 653 40,796,774 62,475 146 6,029,845 41,300 2,533 137,877,953 54,433 Retail trade 9,823 274,714,335 27,966 517 12,228,500 23,652 545 12,466,882 22,875 10,885 299,409,717 27,507 Transp., w arehouse & util. 1,456 71,044,832 48,794 315 14,441,810 45,847 117 7,157,895 61,178 1,888 92,644,537 49,070 Information 1,470 78,194,207 53,193 75 16,590,718 221,209 24 654,513 27,271 1,569 95,439,438 60,828 Financial activities 3,189 165,453,962 51,882 115 4,101,448 35,664 107 3,969,933 37,102 3,411 173,525,343 50,872 Professional & bus. svcs 7,701 323,163,536 41,963 294 10,463,016 35,588 145 4,824,229 33,270 8,140 338,450,781 41,579 Education & health svcs 10,956 554,999,782 50,657 573 23,610,022 41,204 530 21,496,450 40,559 12,059 600,106,254 49,764 Leisure and hospitality 10,593 200,013,067 18,881 579 10,770,054 18,601 557 8,361,929 15,012 11,729 219,145,050 18,684 Other services 2,565 74,651,441 29,103 242 5,645,533 23,328 214 3,891,302 18,183 3,021 84,188,276 27,868 Total all government 8,690 408,577,230 47,016 1,247 56,445,038 45,264 2,442 96,960,309 39,705 12,379 561,982,577 45,398 Total all ownerships 67,448 $2,633,185,100 $39,040 5,860 $243,582,240 $41,566 6,362 $222,337,660 $34,947 79,670 $3,099,105,000 $38,899

INDUSTRY MIX Central Oregon has an ever-more diverse mix of industries that create the employment foundation for the regional economy. For example, in 2007, construction accounted for more than 11% of total payroll, while today it is much closer to national averages. A large slice of the overall pie, government, has seen its share of payroll disperse to other sectors such as education and health services (the fastest growing sector). Information, which includes software, IT services, and data centers, has grown by 30% over the past decade. Tourism (leisure and hospitality) has also seen gains in the past 10 years.

BUSINESS COSTS Oregon has achieved national status for being a cost competitive location for business. The table below compares the cost of doing business in Oregon, Washington, and California. Major contributing factors to the Oregon advantage are no sales tax, no inven- tory tax, an affordable property tax system, and affordable labor costs. Average industrial, commercial, and residential power costs are nearly half those in California and on average 25% below national averages.

BUSINESS COST COMPARISON – U.S. West Coast

Business Factor Oregon California Washington Average Industrial Electricity Rate (Jan. 2015; ¢/kWh) 5.78¢ 10.74¢ 4.21¢ Average Industrial Rate for Natural Gas (Jan. 2015, $/kcf) $6.79 $7.68 $9.14 Average Annual Wage for Production Worker (Q1, 2014) $35,820 $34,580 $41,020 Base Unemployment Insurance, range of rates (As of July 1, 2014) 1.8 – 5.4% 1.5 – 6.2% 0.17 – 5.84% State Unemployment Insurance Tax Rates (As of July 1, 2014) (base: $35,000) (base: $7,000) (base: $41,300) Minimum 2.2% 1.3% .0% Maximum 5.4% 5.4% 5.4% Average Annual Premium for Employer Sponsored Single Person Health In- $5,449 $5,581 $5,690 surance (2013 data) Workers’ Comp premium index rate (as of Jan 1, 2014) $1.37 $3.48 $2.00 Lowest 5.0% ($0) 1.0% ($0) State Individual Income Tax Rates (2014) None Highest 9.9% ($125,000) 13.3% ($1,000,000) Lowest 6.6% ($0) State Corporate Income Tax Rates (As of July 1, 2014) 8.84% None Highest 7.6% (>$1M) State/local gross receipts, operations-based business tax None None 0.484%1 State None 7.5% 6.5% State & Local Sales Tax Rates (As of July 1, 2014) Local None (Average) 0.91% (Average) 2.38% Combined None 8.41% 8.88% Sales or Use Taxes on Construction Costs (FY 2013) None 4.07% 8.87% State Sales Tax Collections Per Capita (July 1, 2014) $0 $889 $1,604 Excise tax 30¢ 36¢ 37.5¢ State Gasoline Tax Rates (cents per gallon) Other taxes 1.07¢ 9.39¢ 0.0¢ (As of Jan, 2015) Total 31.07¢ 45.39¢ 37.5¢ State & Local Tax Burden Per Capita (2011; U.S. Average = $4,217) $3,861 $5,136 $4,366 State Tax Collection Per Capita (2013; U.S. Average = $2,689) $2,340 $3,490 $2,692 Real Estate Transfer Tax None 0.110% 0.128% State Business Tax Climate Index (2015 Tax Foundation) #12 #48 #11 Sources: Tax Foundation, Oregon Employment Department, Washington State Employment Security Department, and California Employment Development Department, US Energy Information Association, Employer Health Benefits Survey, Premium rate ranking index, Oregon Insur- ance Division, 1 Washington does not have a corporate income tax but does have a gross receipts tax (Business & Occupancy Tax). While not strictly comparable to corporate income tax rates, it is imposed on revenues, not profits, resulting in noteworthy effective tax rates, particularly for small businesses and startups.

Perhaps one of the greatest assets in Oregon is the structure of how corporations are taxed known as the Single Sales Factor. The tax rate on corporate income of firms doing business in the state is the greater of a minimum tax based on relative sales ($150-$100,000, approximately 0.1%) or an income-based levy of 6.6% on amounts up to $10 million and 7.6% above that. Ore- gon businesses are taxed on a portion of their total income derived from sales within the state. This corporate income tax is considered Singe Sales Factor tax, as it only considers Oregon sales in determining corporate income taxes owed to the state. Other states often include additional assets and payroll, making them "multi-factor" taxes.

This tax policy is a major reason why Oregon is home to Intel’s largest global employment (more than 16,000 employees) and capital investment. Single sales factor plays an important role for Nike, Columbia Sportswear, Keen, and other outdoor gear and apparel manufacturers continued growth of headquarters, R & D, and warehouse operations.

Page 5 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO The table below compares costs for a manufacturing company with 20 employees and one with 200 employees. This example does not factor or include cost savings offered by incentive programs. Oregon offers more incentive programs to traded-sector businesses (companies that sell product or services outside of the area), than Washington and California combined. Attempting to understand all cost factors in different states and how those impact your specific business can be a daunting task. Some cost factors such as the efficiency and approach of regulatory oversight (i.e. implementation of federal EPA rules) can be dramatically different from state to state but virtually impossible to place a dollar value on for comparison purposes.

20-Employee Firm 200-Employee Firm Cost Factor Oregon California Washington Oregon California Washington Energy costs $149,760 $194,820 $140,015 $149,760 $1,948,200 $1,400,160 Employee gross payroll $903,900 $879,680 $1,007,720 $9,039,000 $8,796,800 $10,077,200 Social insurance $27,669 $29,142 $33,399 $276,694 $291,417 $333,986 Corporate income/other taxes* $2,000 $1,658 $36,300 $59,950 $212,160 $363,000 Annual property tax $125,600 $85,600 $72,000 $1,256,000 $856,000 $720,000 Annual tax on current purchases $0 $33,975 $32,438 $0 $339,750 $324,375 Tax on capital purchases $0 $543,600 $1,305 $0 $5,436,000 $13,050 Total operating costs, initial capital $1,208,929 $1,768,474 $1,323,177 $12,129,244 $17,880,327 $13,231,771 taxes Difference from Oregon + $559,545 +$114,248 + $5,751,093 +1,102,527

*"Other taxes" includes any relevant business taxes that states would apply to the business used in the example, such as gross receipts taxes. Table source: Business Oregon website. .

Workers Compensation Insurance

Workers’ compensation costs in Oregon are 8th lowest in the county, highly favorable compared to other states. The “pure premium” is the portion of the premium employers pay insurers to cover anticipated claims costs for job-related inju- ries and deaths. State officials attribute the de- crease to a focus on improving worker safety, get- ting injured workers treated and back on the job quickly, as well as the initial impact of medical cost control strategies. The “pure premium” rate has either remained the same or decreased for 22 of the past 24 years – making this cost among the lowest in the country for employers.

For manufacturers in places like California, the cost savings of worker’s compensation insurance in Oregon can be substantial. Even a company with 50 employees can realize six-figure annual savings on this one cost factor alone.

EMPLOYMENT TRENDS

Employment Gains 2004 to 2014 From 2004 to 2014, jobs in the nation (Covered employees by payroll) grew at an overall rate of 5.07%. Ore- Area 2004 2014 Gain/Loss % Change gon outpaced the nation’s job growth by approximately 30% and Deschutes Bend/Deschutes County MSA 58,428 67,448 9,020 15.4% County grew at three times the na- Portland MSA 821,394 893,748* 72,354 8.8% tional average. It is important to note Salem MSA 146,499 152,192* 5,693 3.8% that the figures on the left include Medford (Jackson County) 79,350 79,746 396 .49% significant job losses during the Great Corvallis (Benton County) 34,508 35,107 599 1.73% Recession. Eugene-Springfield (Lane County) 139,483 142,188 2,705 1.93% Oregon 1,594,537 1,727,275 132,738 8.3% Over the past decade, almost as many jobs were created in the U.S. Average 139,240,000 146,303,000 7,063,000 5.07% Bend/Deschutes County MSA (9,020) Source: Oregon Employment Department; QCEW &BCLS CPS.*2014 data not available at time of publication. as four of the other five state MSAs combined (9,393 excluding Portland), which represents a population base that is roughly six times larger. On a percentage basis, Bend/Deschutes County employment grew at rate nearly double that of Oregon overall.

UNEMPLOYMENT TRENDS

Regarded as a lagging indicator by most economists, this chart provides a five-year perspective on unemployment in the Tri-County area. Since early 2011, unemployment rates have been reduced significant- ly. As of March 2015, Deschutes County’s unemployment rate of 6.0% is the lowest since December 2007. Crook County’s fell to 8.9%, the lowest rate since June 2008. The unemployment rate dropped to 7.4% in Jefferson County from 9.8% the same time last year, a statistically significant decline. Because of Central Oregon’s sustained strong in- migration, job creation typically lags population growth, a reason why historically, Oregon’s unemployment rate tracks higher than the national rate.

HOUSING / REAL ESTATE TRENDS Average Monthly Rent The Central Oregon rental market continues to face heightened demand in the midst of constrained supply. According to the Central Oregon Rental Owners Association, cur- Average Monthly Rent for a 3 Bedroom House ($) rent vacancy rates have shrunk to 1.04% as of Area 2009 2010 2011 2012 2013 2014 March 2015), down from 12.4% in 2009. Bend 1,003 969 1,012 1,231 1,110 1,221 Redmond/Terrebonne 884 863 911 975 952 1,014 The high demand has exerted pressure on prices Madras/Culver 834 849 817 800 765 859 and a growing interest in multi-family residential construction, particularly in Bend and Redmond. Prineville 790 809 847 835 955 895 In the last year, two and three bedroom rental La Pine 890 905 861 889 838 880 houses increased more on a percentage basis Sunriver 1,000 991 896 1,086 1,066 1,180 than apartments and duplexes. 2014 average rent Sisters n/a 913 850 922 875 898 prices for a 3 bedroom home were up slightly Source: Central Oregon Rental Owners Association (COROA); March 2015 from 2013 in nearly all Central Oregon communities. Our expectation is that 2015 annual rental figures will be up sharply in Bend, Redmond, Prineville, and Sisters amidst strong in- migration and near record low vacancies.

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. Prices are now rebounding substantially - both median and average home prices increased in 2014 across the region, but are still below 2005 levels.

It is noteworthy to mention that prices in Sunriver and Sisters include a much higher percentage of high end homes and homes on acreage than comparable prices in Bend or Redmond.

Home Prices of Existing Single Family Homes (residential, less than one acre, $) Median Sales Price 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Crook County 149,375 195,500 199,450 177,500 112,000 91,100 79,900 87,000 126,725 133,700 Bend 279,900 351,978 345,000 289,450 212,000 191,750 190,000 220,395 269,000 289,950 Redmond 198,818 262,749 250,000 216,000 147,500 123,450 116,000 132,000 175,000 196,275 La Pine 148,450 183,500 215,000 160,000 109,000 99,900 88,200 94,950 133,000 150,900 Sisters 394,250 460,000 415,000 367,450 286,250 223,750 201,000 245,000 300,000 260,000 Sunriver 462,500 575,000 548,547 555,738 402,000 417,500 375,000 350,000 364,000 369,000 Jefferson County 133,500 165,080 177,950 139,950 89,900 69,950 69,900 71,550 84,950 109,950 U.S. 219,000 221,900 217,900 196,600 172,100 173,200 166,200 176,800 197,100 208,300 Average Sales Price Crook County 154,906 212,173 224,151 206,874 145,040 120,537 94,540 113,911 148,124 163,587 Bend 334,570 406,122 426,044 353,142 266,319 245,069 238,186 263,556 317,735 344,694 Redmond 226,238 292,268 286,543 245,204 170,739 142,402 137,214 148,086 197,015 217,263 La Pine 163,971 202,331 237,665 180,153 126,606 110,632 107,238 100,906 146,802 164,295 Sisters 449,979 514,259 526,626 437,636 372,483 295,488 248,019 294,247 317,316 290,327 Sunriver 501,764 627,345 637,734 628,979 458,614 455,550 398,948 381,530 408,326 409,227 Jefferson County 131,493 170,228 187,367 144,146 145,040 78,376 77,010 74,939 91,748 114,669 U.S. 267,400 268,200 266,000 242,700 216,900 220,000 214,300 225,500 NA NA Sources: Central Oregon Association of Realtors (COAR), National Association of Realtors

Commercial and Industrial Real Estate Market Trends

Central Oregon’s commercial real estate market is marked by substantial positive absorption trends. In their quarterly POINTS report, Compass Commercial Real Estate observes that this past year marked the beginning of the end of the recession for the office market. Retail and office sectors are experiencing strong growth and low vacancy rates. Absorption of Bend’s 2.53 million square feet of office space has picked up, with the current vacancy rate at 10.5%. Fratzke Commercial Real Estate noted that building space in Bend, often driven by high-demand areas such as the Old Mill and Downtown Districts have very low vacancy rates which are currently around 6.6% for retail space.

Activity in the industrial market (approximately 5.59 million square feet in Bend and Redmond) has been strong. Since the end of 2013, net absorption increased from 6,998 square feet to 160,729 square feet by the end of 2014. Bend’s 6.7% vacancy rate is at its lowest since Q3 2008; Redmond’s 22.5% rate represents three consecutive quarters of positive absorption.

Building activity is steadily increasing throughout Central Oregon. As a result, the number of building permits issued for new commercial construction, remodels, additions, and repurposing is increasing rapidly, construction prices are on the increase and rents, particularly for newer properties, are climbing.

Land Prices, Lease Rates & Construction Costs

Business Costs Across the Region Land costs in the re- (all costs expressed as costs per square foot1) gion are rebounding Deschutes County Crook Jefferson after seeing as much Category Bend Redmond Sisters La Pine County County as 50% value reduc- Industrial land costs $5.00-$15.00 $2.50-$5.00 $2.55-$6.00 $1.00-$2.00 $1.00-$3.00 $1.00-$2.50 tions resulting from Lease rates 2 the Great Recession. Industrial $0.45-$0.75 $0.40-$0.65 $0.45-$0.60 $0.15-$0.25 $0.20-$0.35 $0.20-$0.45 Costs do vary by Commercial $1.00-$1.70 $0.75-$1.40 $0.85-$1.50 $0.80-$1.00 $0.40-$0.90 $0.45-$0.90 community, with Retail $0.50-$2.50 $0.40-$1.50 $0.85-$1.50 $.50-$1.00 $0.70-$1.00 $0.65-$1.00 Crook and Jefferson Construction $60-$100 $60-$100 $60-$100 $60-$100 $60-$100 $60-$100 Counties generally Source: EDCO research April 2015. The table is meant to represent a range of costs and may be negotiable please contact EDCO with 1 having lower land your specific project requirements. Assumes base rent excluding NNN costs and lease costs. In Deschutes County, Redmond offers lower land and lease costs than neighboring Bend, Sisters is comparable to Bend, while La Pine costs are comparable with Crook and Jefferson Counties.

Several years of strong demand for retail, office, and light industrial space are pushing vacancies down and rents higher in 2015. For the first time in seven years, EDCO expects to see a number of new industrial and light industrial construction projects in the year and possible office projects in 20015 and 2016.

FINANCIAL SERVICES

Central Oregon is home to 16 financial institutions which col- Banks, Savings Associations, and Credit Unions lectively have 64 branches in the region. In addition to these in Central Oregon (as of May 2015) banks and credit unions there are a number of alternative Bank of America Oregonians Credit Union financial resources that can be found on EDCO’s website un- Bank of the Cascades SELCO Community Credit Union der incentives. Alternative financing includes a number of Columbia Bank Summit Bank organizations with local offices that work closely with banks High Desert Bank Union Mid Oregon Credit Union and credit unions including Business Oregon, Craft3 and Ore- JPMorgan Chase Bank U.S. Bank gon Certified Business Development Organization. Mid Oregon Credit Union Umpqua Bank Northwest Community Credit Union Washington Federal Northwest Farm Credit Services Wells Fargo Bank OnPoint Community Credit Union Source: FDIC, EDCO Business Research

Financial Institution Deposits in Central Oregon (in millions) The total FDIC-insured deposit base as of June 30, % Growth County 2001 2006 2013 2014 2014 (the most current data available) was $3.06 billion. 2001-14 Reflecting higher than average deposit wealth, Central Ore- Crook County $123 $261 $205 $237 92.68% gon also supports a significant number of financial planning Deschutes County $1,164 $2,294 $2,450 $2,682 130.41% and investment firms. Many of these firms also provide Jefferson County $92 $123 $146 $143 55.43% wealth management for clients nationwide. Tri-County Total $1,379 $2,678 $2,801 $3,063 122.17% Source: FDIC Summary of Deposits as of 6/30 for each year.

Population in Central Oregon Oregon’s population growth of 1.1% from Area 1990 2000 2010 2013 2014 2013 to 2014 was again dominated by net mi- Oregon 2,842,321 3,421,399 3,837,300 3,919,020 3,962,710 gration (movers-in outpaced movers-out) Crook County 14,111 19,184 21,020 20,690 20,780 which accounted for 74% of the increase. Prineville 5,355 7,358 9,260 9,270 9,385 Natural births over deaths accounted for only Unincorporated 8,756 11,826 11,760 11,420 11,395 26%. Similar, but even more dramatic in- Deschutes County 74,958 115,367 157,905 162,525 166,400 migration trends prevail in the Tri-County area. Deschutes County experienced the largest Bend 20,447 52,029 76,740 78,280 79,985 year-over-year percentage gain (2.4%) for all La Pine Not yet incorporated 1,660 1,670 1,670 36 Oregon counties and is the primary driver Redmond 7,165 13,481 26,225 26,590 26,770 behind the addition of more than 3,000 new Sisters 708 959 2,040 2,115 2,190 residents annually to the region’s population. Unincorporated 46,638 48,898 51,240 53,570 55,785

22,205 Jefferson County 13,676 19,009 21,750 22,040 Deschutes County grew dramatically between Culver 570 802 1,365 1,370 1,380 the 1990 and 2000 Census and even more so Madras 3,443 5,078 6,050 6,255 6,260 between 2000 and 2010. It was the 7th fastest Metolius 450 729 710 705 700 growing county in the U.S. last year. Bend Unincorporated 9,213 12,400 13,625 13,710 13,865 more than doubled in size between 1990 and Tri-County Total 102,745 153,560 200,675 205,225 209,385 2000 and grew by 47% between 2000 and Source: Population Research Center, PSU. 1990, 2000 & 2010 Census numbers are for 2010. While growth flattened between 2010 April 1 of that year, 2014 data is for July 1, 2014. and 2012, signs over the past 18 months point to a pickup of in-migration and business activity across the region. Since 2010, Crook County has grown at a very slow pace after dramatic growth between 1990 and 2010. Still, over the past dozen years, Prineville’s population has expanded by 26%. At 15.9% growth since 2000, Jefferson County has grown at a steady rate that exceeds that of Oregon and the nation.

In March 2015, Portland State Uni- Population Projections 2015-2065 versity (PSU)’s Oregon Population Area 2015 2025 2035 2045 2055 2065 Forecast Program released a popula- Tri-County Total 214,547 258,899 300,926 340,739 379,237 416,764 tion forecast for the tri-county of an Crook County 21,135 22,404 23,916 24,962 25,457 25,640 estimated 416,764 people by 2065 – Prineville UGB 11,256 11,935 12,845 13,472 13,593 13,383 the first of its kind in many years. Outside UGB 9,879 10,470 11,071 11,489 11,864 12,257 Deschutes County 170,606 210,826 249,037 285,908 322,045 357,345 Deschutes County, the fastest grow- Bend UGB 85,737 109,546 132,209 154,719 176,003 194,793 ing county in the state, will be home La Pine UGB 1,687 2,263 3,014 3,872 4,816 5.836 to about 357,345 people in Sisters UGB 2,315 3,431 4,375 5,320 6,266 7,212 2065, with 194,793 of them in Redmond 27,715 33,282 39,812 47,167 55,373 64,785 greater Bend, increasing the city by Outside UGBs 53,151 62,305 69,627 74,830 79,587 84,719 an estimated 127% over today’s Jefferson County 22,806 25,669 27,973 29,869 31,735 33,779 population. The population in Jeffer- Madras 7,484 8,700 9,815 10,867 11,832 12,749 son County in 2065 will reach an es- Source: PSU Oregon Population Forecast Program, Preliminary Forecasts, March 2015. timated 33,779, 48% over today’s population. By 2065, an expected 25,640 will call Crook County home, a 21% increase over 2015. Overall, population forecasters expect the region to continue to be a very dynamic part of the state and country.

EDUCATION

Public Schools

2014-2015 Public School Enrollment Breakdown Central Oregon schools in Deschutes, Crook, and Jefferson County School District Students Schools Website School Districts serve an area greater than 7,800 square miles, include Crook County urban centers such as Bend and Redmond along with smaller towns and rural areas. Over 32,000 students attend 72 schools. Tri-County Crook SD 3,303 12 crookcounty.k12.or.usU Deschutes County districts operate 30 elementary schools, 13 middle schools, and 18 high schools, as well as a diverse array of charter and community schools. Of Bend-La Pine SD 17,163 30 bend.k12.or.usU the area’s teachers, nearly 99% meet Highly Qualified standards and Redmond SD 7,329 13 redmond.k12.or.usU over 65% hold a Master’s Degree or higher. Sisters SD 1,107 3 sisters.k12.or.usU Jefferson County The largest school district is Bend-La Pine with over 17,000 students Jefferson SD 509J 2,905 7 Jcsd.k12.or.us enrolled and more than 1,750 staff members. Its attendance area Culver SD 695 3 culver.k12.or.usU spans more than 1,600 square miles - the seventh largest in the state. Tri-County Total 32,461 72 Source: Oregon Department of Education; local school districts In the 2013-2014 State School Report Card, 86% of our schools in the Bend-La Pine received overall ratings of 4 or 5, with 25% of our schools rated in the top 10 of Oregon schools. 2014 Average SAT Scores Since 2000, students in the Bend-La Pine School District have continually scored higher on Bend-La Pine 1615 SAT tests than their peers, 95 points higher than their peers nationwide. More than 70% of Washington 1519 Bend students continue onto college. Oregon 1544 Private Schools California 1504 Private schools in Central Oregon have developed a reputation for high academic achieve- U.S. Average 1497 ment and a focus on giving personalized attention to each individual student. There are 29 Nevada 1454 private schools in Central Oregon; twelve of these are faith-based and represent a variety Sources: College Board & Bend-La Pine School District 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 educational methods and services are present in private schools throughout K-12 District Enrollment for Oregon’s Metro Central Oregon, several institutions stand out for reputation and District 2004 2015 % large student population. Among these select private schools Bend-La Pine 1 13,940 17,122 Change 22.8 are Trinity Lutheran School, Seven Peaks, and Cascades Academy Redmond 2J 6,159 7,329 19 in Bend as well as Central Christian School in Redmond. Hillsboro 1J 18,951 20,884 10.2 Salem-Keizer 24J 37,877 40,698 7.5 Medford 549C 12,853 13,628 6 Demand for Higher Education N. Clackamas 12 16,170 17,130 5.9 The populace of Central Oregon has a strong interest in pursuing Statewide Average 551,372 570,857 3.5 higher education and improving their vocational skills. The chart to Eugene 4J 18,476 17,012 -7.9 the right shows enrollment for Central Oregon’s post-secondary Corvallis 509J 7,063 6,643 -5.9 education institutions over the past twelve years. The last six Portland 1J 48,326 45,998 -4.8 years of demand for higher education have been driven by sev- Source: Oregon Department of Education, Fall Membership Report ’14-‘15 eral forces: Central Oregon’s growing population base, a recov- ery from the national economic recession, and job training and re-training. Additionally, OSU Cascades Campus is gaining in reputation, attracting more students, and expanding its program offerings.

EDCO works in partnership with Central Oregon Community College (COCC) and OSU-Cascades to ensure that program offerings align with business needs. Both institutions have top leaders that serve as Directors on EDCO’s Board.

Central Oregon Community College (COCC)

Central Oregon Community College operates campuses in Bend, Redmond, Madras, and Prineville. Founded in 1949, COCC (www.cocc.edu) is Oregon’s first and consequently oldest community college. The College offers transfer/lower division 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 COCC District covers a 10,000-square-mile area that encompasses all of Crook, Deschutes, and Jefferson counties, the southern part of Wasco, and the 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 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 Ca- reers Center and Science Center, funded by a voter-approved bond measure, both opened in fall 2012.

The Small Business Development Center (SBDC) operated by COCC provides active support for Central Oregon’s small businesses. SBDC provides programs such as 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 personal and professional development.

The COCC Redmond Campus sits on 25-acres near the Redmond Airport and includes four buildings to serve students with a variety of career programs, educational opportunities, and transfer eligible classes. This past year, approximately 2,300 students enrolled in one or more credit classes in Redmond. In addition to the wide range of services and college courses offered to students, COCC’s Redmond Campus is home to the region’s Manufacturing and Applied Technology Center, a 26,000-square-foot technical training facility with certificate and degree programs readying students for jobs in the manufacturing field.

The COCC regional Technology Education Center offers classes for Central Oregon’s business and workforce population at the Red- mond Campus. This 34,000-square-foot facility, planned and developed with industry participation, located on the corner of Vet- erans Way and Salmon Drive, is home to the Center for Entrepre- neurial 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 New COCC Technology Education Center in Redmond www.cocc.edu/redmond, or call 541-504-2900.

Enrollment at COCC has increased dramatically over the years, doubling in the last few years as increasing numbers of area residents turned to the College for education and training during the economic downturn. A record number of students have been earning certifi- cates and degrees then transferring to four-year colleges and universities or moving into jobs locally using skills learned in the career and technical education programs.

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

Oregon State University – Cascades Campus Founded in 2001, OSU-Cascades offers upper-level and graduate courses in a unique partnership with Cen- tral Oregon Community College in which students typically take lower-division courses at COCC. Currently 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- Field of Study Degree Program Cascades students may choose from a variety of Accountancy BA/BS graduate, undergraduate, and minor programs American Studies BA/BS Applied Visual Arts BFA (see table at left). Art BA/BS Art History Minor The Energy Systems Engineering Management program is unique in Biology BS, Minor the state, preparing graduates for a broad range of careers in the Business Administration BA\BS, MBA energy industry. The Computer Science degree was developed with Business & Entrepreneurship Minor considerable industry input from many of the region’s nearly four- Computer Science BS dozen software firms. OSU-Cascades is in the first phase of con- Counseling MS structing a $111 million branch campus in Bend that will accommo- Creative Writing MFA Early Childhood Development & Education Minor date up to 5,000 full-time students. Energy Systems Engineering BS English Minor Additional Colleges and Universities Exercise & Sport Science BS Additional accredited academic institutions have a presence in Cen- Human Development & Family Sciences BS tral Oregon, typically combining evening and occasional weekend International Studies BA classes in conjunction with distance learning. Liberal Studies BA/BS Military Science Minor . University of Oregon is offering its Executive MBA program locally Natural Resources BS, Minor at its Bend Center (503-276-3622) Political Science Minor . Eastern Oregon University Division of Distance Education (541- Psychology BA/BS, Minor Social Science BA/BS 385-1137) Speech Communication Minor . George Fox University (1-800-631-0921) Sustainability BS . Linfield College - Central Oregon Center (541-388-2986) Teaching MAT . Oregon Institute of Technology, Bachelor’s degree in Operations Tourism & Outdoor Leadership BS, Minor Management, via COCC Visual Arts Minor

Average 2014 Electricity Rates UTILITIES SERVING CENTRAL OREGON (in cents, per kwh) Electric Companies Service Class U.S. CA OR CEC* PPL* MSE* Industrial 7.01 10.74 5.78 5.84 7.13 6.52 Central Oregon providers of electric power are: Commercial 10.75 13.98 8.76 7.26 8.78 6.71 . Pacific Power (PPL), 888-221-7070 Source: U.S. Energy Information Administration 2014 data. *2013 eia data . 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 nearly 50% below those in neighboring California. The region is primarily served by one of the largest and most robust transmission systems in the country that is operated by the Bonneville Power Administration (BPA) a federal department. BPA is the source of most power generation for Central Electric and Midstate Electric cooperatives, although there are a number of other smaller scale renewable energy production facilities within the region including hydro and solar.

Page 13 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO Natural Gas Natural gas is widely available throughout Central Oregon and is supplied by Cascade Natural Gas Corporation (CNGC), 888-522-1130. Headquartered in Average 2014 Natural Gas Rates Kennewick WA., CNGC serves more than 46,000 local industrial, commercial, (in cents, per kcf) and residential customers from a regional operations base in Bend. Service Class U.S. CA OR CNGC Industrial 5.53 7.73 6.79 7.33

Commercial 8.90 9.08 9.94 8.01

Source: U.S. Energy Information Administration. Natural Gas Rates Delivery User Base Charge Cost Per Therm Charge/Therm Potential users for the Large Volume–General Service rate Commercial $3.00 $0.80 $0.26 should contact EDCO for additional information about their Industrial $12.00 $0.75 $0.18 potential usage conditions. Transmission to the region is Large Volume–General* Included $0.72 $0.15 provided by 36 and 42 inch high capacity lines that run from *Requires specific contract and usage conditions; 1 therm = 1,000 BTUs. Canada to southern California. Source: www.cngc.com

Water System & Rates Cities in the region have invested in the latest technology for the least environmental impact and greatest savings to residents and businesses. Rates vary between communities in the region. Commercial and industrial rates are typically based on meter size; please contact EDCO for specifics.

TELECOMMUNICATIONS

Built largely over the last decade, Central Oregon’s tele- Telecom Resources in Central Oregon communications infrastructure is one of the Northwest’s BendBroadband, BendTel, CenturyLink, Fat- most technologically advanced, meeting requirements for Carriers & Providers Beam, Quantum Communications, Integra capacity, redundancy, and reliability. High-end data services, Telecom Community Broadband, Webformix, typically offered only in large metro areas, include Ethernet Wireless Internet Yellowknife Wireless access rates up to 10 GB. Several local providers focus purely BendBroadband, Chambers Cable, Crestview Cable on the commercial marketplace. Cable, DirecTV Resellers & Integrators Integra Telecom (Internet & voice) Services are delivered across a number of access options in- Telephone Interconnect ACT Cascades, CascadeTel cluding land line (copper), high speed fiber optics, and wireless (WiFi, WiMax and secure microwave). Many providers Cellular AT&T, Sprint, T-Mobile, US Cellular, Verizon 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 inno- vation has made Central Oregon a telecommunications oasis, on par with far larger metro areas. In 2010 BendBroadband won a federal broadband infrastructure grant of $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 Met- ro Ethernet and GePON in the last mile creates a comprehensive, regional 40 Gbps fiber ring.

SERVICES Health Services

Top quality health care is one of Central Oregon’s crown jewels. With four hospitals and more than 120 employed medical providers, St. Charles Health Sys- tem is the largest provider of medical care in Central Oregon. St. Charles has pledged to partner with the communities it serves to achieve an ambitious vi- sion: Creating America's healthiest communities, together. St. Charles Health New St. Charles Bend Cancer Center

Page 14 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO System began in 2001 as Cascade Health Services when St. Charles Medical Center in Bend merged with Central Oregon District Hospital in Redmond. Today, the organization owns and operates medical centers in Bend, Redmond, Prineville, and Madras. Medical centers in Bend and Redmond are accredited while St. Charles Bend is Oregon's only Level II Trauma Center east of the Cascades.

St. Charles Bend is a fully accredited, 261-bed hospital that includes 24-hour emergency care, intensive/cardiac care, physical, respiratory and nutritional therapy, radiology, surgery and an on-campus rehabilitation center. In addition, they offer 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.

As a private, nonprofit Oregon corporation, St. Charles is Central Oregon's largest employer with more than 3,500 caregivers in Bend, Madras, Redmond, Prineville, and Sisters combined. More than 350 active medical staff members and approximately 200 visiting medical staff members also make it possible for St. Charles to deliver a wide range of excellent care in a compassionate, healing environment.

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 51 is the ABC affiliate, KFXO TV 39 is the Fox affiliate, KBNZ TV 7 is the CBS affiliate, and KOAB TV 11 is the PBS station. BendBroadband airs local origination programming through COTV 11, its community cable channel, which provides in-depth local news, sports and information.

TRANSPORTATION

Commercial Airport Redmond Municipal Airport (RDM; www.flyrdm.com) provides commercial air service (30 flights daily) to Denver, Los Angeles, Portland, Salt Lake City, San Francisco, and Seat- tle via four carriers (Alaska, American, Delta, and United). Considerable investment has been made at the airport in recent years including a $40 million terminal expansion, expanded passenger parking (to over 1,000 places) tarmac and runway reconstruction. The Airport is home to the USDA Forest Service Redmond Air Center, Cascade Avia- tion Management, Life Flight, Butler Aviation, Les Schwab, Bonneville Power, RDD Flying Time to Markets Served by RDM Enterprises, Lancair, and Henderson Aviation. Flight to: Flying Time Denver, CO 2 hoursMinutes 24 min RDM also provides air cargo services and hosts general aviation traffic, including exten- Los Angeles, CA 2 hours 0 min sive corporate and business travel. Fed Ex, United Parcel Service and the USPS provide Portland, OR 0 hours 40 min air freight and package express services. 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)

. 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’ 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 currently 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 Prineville and has two well-maintained, lighted, intersecting asphalt runways that are able to accommodate small aircraft and corporate jets. The primary runway is 5,751’ in length and 75’ wide and is equipped with GPS instrument approaches. The crosswind runway is 4,054’ long and 40’ feet. An automated weather observation system was installed in the fall of 2013. In February 2013, Hillsboro Aviation began using the Prine- ville/Crook County airport as a flight training center for international students. Hillsboro picked Prineville because of the favorable weather conditions and services the airport and community provide.

. The Madras Municipal Airport and industrial site is a fast-growing Category 4 airport for general aviation and business use. The airport is 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 Airport 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 recently expanded their operations with an additional 65,000 SF hangar and other aircraft related businesses. A $2.2 million Connect Oregon III project provided 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 acclaimed Resort. With a recently upgraded and refinished 5,500’ 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. 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 Kendall Au- tomotive as well as full services to pilots and flight crews.

. Sisters Airport: At 3168’, Sisters Eagle Air Airport is located one mile north of downtown Sisters and is categorized by the Or- egon Department of Aviation as Category IV (local general aviation airport). While privately owned by Sisters Eagle Air, Inc., the airport is open to public use. It is also used for EMS, and wildfire aircraft support. The runway dimensions are 3550’ x 60’ / 1082 x 18 m. Originally built in 1936, the Sisters Airport was re-paved, updated, and improved in 2013 and is fast becoming a center for local businesses. Several successful traded-sector companies, including ENERGYneering, have their headquarters at the airport. In the spring of 2014 the airport property was annexed into the City of Sisters. Through this public-private partnership, the airports, and its key companies, have plans to expand commercially/industrially, and with an array of benefits and perks for pilots.

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 major 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.

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 the 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 residents with Amtrak, the MET, and Portland International Airport. TAC Transportation operates two lines important to Central Orego-

Page 16 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO nians 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 Distance from Bend Oregon City State Miles Drive Time With U.S. Highway 97 running north to south through Bend, and U.S. Portland OR 145 3 hrs, 3 min Highway 20 running east to west through Bend, travel to other areas in Medford OR 189 4 hrs, 6 min Oregon is relatively straightforward. Using either the northern Highway Olympia WA 251 4minutes hrs, 44 min 26 or the more southern Highway 20 route, Portland is a three hour Seattle WA 311 5utes hrs, 42 min drive from Bend while Medford runs about four hours away. Outside Boise ID 323 6minutes hrs, 33 min Oregon, Seattle can be reached in less than six hours and parts of the San Francisco CA 507 9inutes hrs, 0 min Bay Area can be accessed in eight or nine hours. Los Angeles, at nearly Los Angeles CA 838 13nutes hrs, 48 min 14 hours, tests the outer limit of a day’s drive. Source: Mapquest nutes

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 regional, it is common for people to commute 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 substantially below the average com- Source: U.S. Census Bureau mute times in Portland, Seat- tle, San Francisco, Boise, Los Angeles and many other urban centers. City Elevation La Pine 4,300’ TOPOGRAPHY & CLIMATE Sunriver 4,100’ Bend 3,623’ Every community in Central Oregon has its own variations of temperature and precipitation, rela- Sisters 3,200’ tive to its elevation and proximity to the mountains. The region is known for sun, averaging just Redmond 3,077’ two weeks fewer sunny days than San Diego, CA. Interestingly, the region lies on one of the na- Prineville 2,868’ tion’s largest rain gradients: Redmond receives an average of 8.6 inches of precipitation and is Madras 2,242’ only 60 miles from a region in the Cascades that receives over 120 inches. Warm Springs 1,575’

The geographical climate for Central Oregon is predominately High Desert. Summer temperatures range from an average high of 85° to a low of 44° F while winter temperatures 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 the winter months.

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

Top 10 Property Taxpayers in 2014-15 Deschutes County Crook County Jefferson County Property & Revenue Tax Manager 1 PacifiCorp (PPL) Portland General Electric (Pacificore) 2 Bend Cable Communications LLC Brasada Ranch Development LLC Gas Transmission Northwest Corp.

3 Gas Transmission Northwest Corp Les Schwab Warehouse Center Inc. PacifiCorp (PPL)

4 Cascade Natural Gas Contact Industries inc Bright Wood Corporation

5 Touchmark at Mount Bachelor Village LLC Les Schwab Tire Center #11 Keith Investments/Manufacturing

6 CVSC LLC (Cascade Village Square Center) O’Ryan Ranches LLC Warm Springs Power Enterprises

7 Deschutes Brewery INC WG Prineville LLC Safeway, Inc.

8 Wal-Mart Stores CenturyLink Burlington Northern Santa Fe Railroad

9 Century Link Apple Inc Union Pacific Railroad

10 Suterra LLC Gas Transmission Northwest Corp. CenturyLink Sources: Local County Assessors

CHAMBERS OF COMMERCE & OTHER BUSINESS RESOURCES

Chambers of Commerce Other Organizations Bend Chamber Prineville/Crook Co. Chamber Central Oregon Visitors Assoc. (COVA) 541-382-3221 541-447-6304 800-800-8334 www.bendchamber.org www.visitprineville.com www.visitcentraloregon.com Crooked River Ranch Chamber Redmond Chamber Confederated Tribes of Warm Springs 541-923-2679 541-923-5191 Business and Economic Development www.crrchamber.com www.visitredmondoregon.com 541-553-3468 | www.warmsprings.com La Pine Chamber Sisters Area Chamber La Pine Industrial Group 541-536-9771 541-549-0251 541-536-9042 www.lapine.org www.sisterscountry.com Madras/Jefferson Co. Chamber Sunriver Chamber Visit Bend 541-475-2350 541-593-8149 877-245-8484 www.madraschamber.com www.sunriverchamber.com www.visitbend.com

BUSINESS RESOURCES Listed below is a sampling of the broad variety of business support organizations (BSO) that cover the continuum of business development - from concept to mature business. More resources are available, so contact EDCO for a complete list including local resources or customized assistance that brings our longstanding relationships with these organizations.

Oregon Resources County Resources Business Oregon Central Oregon Intergovernmental Council (COIC) www.oregon4biz.com (541) 548-8163 | www.coic2.org Inventor’s Northwest Central Oregon Workforce Coordinating Council (541) 317-1154 | www.coinventorsgroup.ning.com 541-504-3306 NEW (Network of Entrepreneurial Women) City Club of Central Oregon www.networkwomen.org 541-633-7163 | www.cityclubco.com Oregon Employer Council Central Oregon Crook County (541) 408-4557 | www.oregon.gov/EMPLOY/OEC www.co.crook.or.us OMEP (Oregon Manufacturing Extension Partnership) Deschutes County www.omep.org www.deschutes.org |541-388-6584

Page 18 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO Vocational Rehab Jefferson County (541) 388-6336 www.co.jefferson.or.us Worksource Bend (Oregon Employment Department) Small Business Development Center (SBDC) www.worksourceoregon.org (541) 383-7290 | www.cocc.edu/sbdc

Tri-County Resources Abilitree HRACO (Human Resource Association of Central Oregon) (541) 388-8103 | www.abilitree.org www.HRCentralOregon.org AdFed of Central Oregon Opportunity Knocks (541) 385-1992 www.opp-knocks.org

COCC (Central Oregon Community College) OSU-Cascades (Oregon State University—Cascades Campus) www.cocc.edu www.osucascades.edu COIC (Central Oregon Intergovernmental Council) SBDC (Small Business Development Center) (541) 548-8163 | www.coic2.org (541) 383-7290

EDCO (Economic Development for Central Oregon) SCORE (Service Corps of Retired Executives) www.edcoinfo.com www.centraloregon.score.org

HiDEC (High Desert Enterprise Consortium) Tech Alliance www.hidec.org www.techallianceco.org

CENTRAL OREGON’S ENTREPRENEURIAL LANDSCAPE

An increasing level of startup activity is being seen across Central Oregon. Numerous industry clusters are coalescing in such areas as high technology, bioscience, outdoor recreation and consumer goods, food products, brewing & distilling, energy, advanced manufacturing, and UAV (un- manned aerial vehicles). This activity is being driven by both entrepreneurs relocating to the region, and local entrepreneurs embarking on their own enterprises. The region is large enough to support the resources and access to capital that help new entrepreneurs get started, while still being small enough that those resources are interconnected enough to support businesses as they grow. Unique to Central Oregon are the numerous community resources and assets that are available. A few of these include those managed by EDCO, such as the Stable of Experts, PubTalk, and the Bend Venture Conference (BVC).

The Stable of Experts (SOE) is a searchable database of over 120 experts that spans multiple industries and disciplines. These experts have agreed to dedicate a certain number of hours to helping entrepreneurs fill their skills gaps and mentor young leaders. Every new business is like a puzzle with certain pieces missing. The SOE helps to fill in these missing pieces and increase their probability of success.

Central Oregon PubTalk is a monthly event held at McMenamins Old Saint Francis School, which has been converted into a very cool pub. These events are a showcase for entrepreneurs to pitch their business ideas, and for previously showcased businesses to provide an update on their progress. Keynote speakers are brought in to add an educational component to the event. A successful pitch is an integral component of securing funding, which all new business need. PubTalk offers a platform for emerging businesses to practice and perfect that pitch. Coaching sessions are conducted by EDCO previous to the event. The event has grown from 950 attendees in FY 2014 to an expected 1,500 in FY 2105.

The Bend Venture Conference (BVC) has become the marquee event for the entrepreneurial community not just in Bend, but in the entire state of Oregon. The annual event takes place in October and is in its 12th year. The 2014 BVC was a pivotal year for the conference, with over $1 million in funding secured for many of the participating startups. Over 450 investors, entrepreneurs, service, professionals, and students attend the event.

Page 19 Last updated 5/22/2015 Central Oregon Profile © Copyright 2015 EDCO ABOUT EDCO EDCO Offices Central Oregon Business Begins with EDCO Regional Office (Bend) Founded in 1981, EDCO is a non-profit corporation supported by private and public 705 SW Bonnett Way, Ste. #1000 Bend, OR 97701 | 541-388-3236 members and stakeholders. Our mission is to create a diversified local economy and a Executive Director: Roger Lee strong base of middle class jobs in Central Oregon. To do this, we focus on helping com- Bend Manager: Robyn Sharp panies do the following: Redmond 446 SW 7th Street Move. We guide employers outside the region through the relocation process as a re- Redmond, OR 97756 | 541-923-5223 source for regional data, incentives, talent, site selection, and more. Manager: Jon Stark

Sisters Start. We mentor and advise scalable young companies from concept to exit on issues 520 E Cascade Street | 541-977-5683 such as access to capital, critical expertise, and strategy. Sisters, OR 97759 Manager: Caprielle Lewis Grow. We help local traded-sector companies expand be finding suppliers, workforce La Pine sourcing, permitting, and incentives. 16345 Sixth Street. | 541-536-1432 La Pine, OR 97759 In addition, EDCO also works to improve the region’s business climate by influencing Manager: Janet Burton state legislation and local policy making, improving our transportation and information Prineville/Crook County links to the rest of the world (air service, telecom) and catalyzing other critical infra- 510 SE Lynn Blvd. structure or community development needed to be prepared for successful business Prineville, OR 97754 | 541-233-2015 development. Manager: Caroline Ervin Madras/Jefferson County Board of Directors 2028 NW Airport Way Madras, OR 97741 | 541-390-3121 EDCO is a membership organization with roughly half of its funding coming from pub- Manager: Janet Brown lic entities (counties, cities and higher education) and the other half from private companies and individuals. The organization is guided by a 45-member board drawn from EDCO Platinum Members across the tri-county area of Crook, Deschutes, and Jefferson, and representing a wide variety of industry sectors. AmeriTitle Bank of the Cascades EDCO is funded by members Bend Memorial Clinic BendBroadband Cascade Natural Gas Central Electric Cooperative, Inc. Central Oregon Community College CenturyLink City of Bend City of LaPine City of Madras City of Prineville City of Redmond Focused on Results City of Sisters Combined Communications At EDCO, we keep close tabs on economic indicators such as job growth, total payroll Crook County and new capital investment made by traded-sector companies. The results of the last Deschutes County three fiscal years and the first three quarters of fiscal year 2014-2015 are as follows: Jefferson County Mid Oregon Credit Union OSU-Cascades EDCO’s RESULTS Pacific Power Jobs Payroll New Capital Schwabe, Williamson & Wyatt Fiscal Year Companies (new & retained) (estimated)* Investment SGA CPA’s & Consultants St. Charles Health System 2014-2015 (Q3) 32 524 $21.2 million $81.9 million

2013-2014 30 590 $25.9 million $210.9 million 2012-2013 29 1,136 $40.1 million $340.0 million 2011-2012 21 890 $30.2 million $25.6 million TOTALS 80 2,616 $96.2 million $576.5 million