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North Santiam Canyon Economic Opportunity Study 2014

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North Santiam Canyon Economic Opportunity Study 2014 NNoorrtthh SSaannttiiaamm CCaannyyoonn EEccoonnoommiicc OOppppoorrttuunniittyy SSttuuddyy 2014 Prepared by: North Santiam Canyon Economic Opportunity Study 2014 Prepared by Mid‐Willamette Valley Council of Governments 100 High St. SE, Suite 200; Salem, OR 97301 Contact: Renata Wakeley, 503‐540‐1618, [email protected] North Santiam Canyon Economic Opportunity Study Table of Contents Introduction ............................................................................................. 3 Study Area ............................................................................................................. 5 Major Communities .............................................................................................. 7 Other Communities ............................................................................................... 8 Opal Creek Wilderness and Scenic Recreation Area ............................................. 9 Area Recreational Facilities ................................................................................. 10 Demographic and Economic Conditions ................................................ 11 Background ......................................................................................................... 11 Demographic Profiles .......................................................................................... 12 Historic Economic Conditions ............................................................................. 15 Current Economic Conditions ............................................................................. 16 Economic Opportunities and Threats .................................................................. 19 Industrial and Commercial Lands ........................................................... 22 Development Constraints ...................................................................... 23 Water Quality ...................................................................................................... 23 Flooding ............................................................................................................... 23 Wetlands ............................................................................................................. 24 Sensitive Habitat ................................................................................................. 25 Brownfields ......................................................................................................... 26 Historic and Cultural Resources ............................................................. 29 Public Infrastructure .............................................................................. 31 Highway and Transportation Facilities ................................................................ 31 Public Transportation .......................................................................................... 34 Other Transportation Modes .............................................................................. 34 Public Water and Sewer Facilities ....................................................................... 35 Fire and Emergency Services ............................................................................... 39 1 North Santiam Canyon Economic Opportunity Study | December 2014 Park Facilities ...................................................................................................... 40 Public School Services ......................................................................................... 42 Economic Development Strategy ........................................................... 43 Summary of Economic Development Issues ....................................................... 43 Economic Objectives ........................................................................................... 41 Regional Investment Needs ................................................................................ 44 References .............................................................................................. 48 Appendix A – Industrial and Commercial Lands Inventory Results ........ 49 Appendix B – Canyon Journeys Regional Trail Plan ............................... 65 Appendix C – Regional Investment Board .............................................. 64 List of Tables Table 1. Historic and Projected Population ................................................................................................................ 11 Table 2: Age Profile ..................................................................................................................................................... 12 Table 3: Gender and Racial Profile .............................................................................................................................. 13 Table 4: Per Capital Income, Unemployment Percents, and Poverty Levels .............................................................. 14 Table 5: Educational Attainment (Persons Age 25+) .................................................................................................. 14 Table 6: North Santiam Canyon Total Employment and Payroll................................................................................. 18 Table 7: Employment by Industry in the North Santiam Canyon Area, 2007 and 2012 ............................................. 18 Table 8: Economic Strengths and Opportunities ........................................................................................................ 20 Table 9: Economic Weaknesses and Threats .............................................................................................................. 21 Table 10: Commercial Lands Summary ....................................................................................................................... 22 Table 11: Industrial Lands Summary ........................................................................................................................... 22 Table 12: Potential Highway Needs ............................................................................................................................ 33 Table 13: City of Idanha Water Rights ........................................................................................................................ 38 2 North Santiam Canyon Economic Opportunity Study | December 2014 Introduction The North Santiam Canyon (NSC) is located in Marion and Linn Counties and about one hour east of the City of Salem. The Canyon area consists of 670 square miles and includes the small cities of Lyons/Mehama, Mill City, Gates, Detroit and Idanha. These could be considered isolated rural communities, except for State Highway 22, which serves as a main highway artery that connects the mid‐Willamette Valley to Central Oregon and serves as a gateway to nearby Cascade mountains and North Santiam River recreation areas. Over the last twenty‐five years, the NSC has experienced severe economic distress fueled by a sharp decline in economic activity. Protection of the Northern Spotted Owl under the Endangered Species Act in 19901, enactment of the Northwest Forest Plan of 1994 and the 1996 Omnibus Parks and Public Lands Management Act greatly contributed to the reduction of new timber sales and, therefore, reduction of employment in the timber industry which has had a profound impact on the ability of local governments in then Canyo to provide essential services to their citizens. Historically, communities within the NSC have relied on logging, mills and wood products for their livelihood. Oregon Employment Department data from 1999 shows that logging, mills, and wood products (manufacturing) supported 63.5 percent of all employment in the region. Jobs in the mills paid well and families enjoyed modest prosperity. The industry continues to experience declines and 2012 data shows a decline in manufacturing to 41 percent of employment in the region. Most of the industry remaining is comprised of multi‐generational, family owned companies. These mills do not have access to resources to expand operations and are unable to support the level of jobs needed to return to employment levels seen during the heights of timber production. Consequences of the decline in the region are more than the numbers that measure them. Although the North Santiam Canyon’s strengths are in its community roots and dedicated volunteers and professionals, the depressed economic situation in the Canyon has significantly impacted the ability of families to make a decent wage and remain in the area. A lack of community facilities and ability to maintain public infrastructure among reduced populations prevents businesses from locating in the region and is forcing families to move toward larger population centers or commute further to work. For instance, while population has slowly grown over time to 6,462 persons in 2010, the demographics have shifted from young families with children to an average median age of 46.3. The population of those over 65 years of age totals 16.9 percent of the total population in the region, as compared to 13.8 percent statewide and 12.9 percent for Marion County in 2010. The North Santiam Canyon Economic Opportunity Study was originally completed in 2000 in response to the designation of the Opal Creek Wilderness and Scenic Recreation Area. The Omnibus Parks and Public Lands Management Act of 1996 designated 37,500 acres of timberland in the North Santiam Canyon (NSC) as the Opal Creek Wilderness and Scenic Recreation
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