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OFFICE OF GOVERNOR KATE BROWN

REGIONAL SOLUTIONS

PROJECTS UPDATE

2017

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Executive Summary

Oregon’s economy is doing well. Businesses are growing, unemployment is low, and wages are increasing. But not all Oregonians are enjoying this prosperity equally. The Regional Solutions program recognizes is actually comprised of many different economies and tailors the state’s support to each region. Regional Solutions puts the state’s resources and problem- solving ability in support of local economic development priorities by utilizing advisory committees, coordinators, and state agency teams.

The program has eleven regions that align with the federally designated Economic Development Districts. For each region, Governor Brown has appointed an advisory committee to represent the private, public, and philanthropic sectors. Over 100 local elected officials, business representatives, foundation representatives, and citizens serve on advisory committees. These 11 committees establish priorities unique to their respective region.

Each region is also represented by a state agency team consisting of staff from the Governor’s office and five core state agencies – the Oregon Department of Transportation, Department of Land Conservation and Development, Department of Environmental Quality, Oregon Housing and Community Services, and Business Oregon. Additional members from state agencies and economic development organizations participate according to the needs of the region. The teams work on the nuts and bolts of economic development: streamlining permits, advising on land use, and building partnerships between the private, public, and philanthropic sectors. We see the results when businesses grow and things get built: roads, water systems, broadband, homes, innovation centers, food hubs, and more. That leads to not just more jobs, but better jobs across the state.

Regional Solutions teams also handle special assignments. When the Governor heard from businesses across the state that housing shortages were constraining economic growth, she directed Regional Solutions to find solutions. Based on their work, five pilot projects were launched that use partnerships between local communities, the business sector, and private developers to build more houses for working families in Oregon.

When the Chetco Bar and Eagle Creek fires did major damage to local economies, the Regional Solutions teams jumped into action. They helped business owners, employees, and local leaders get through the crisis. The teams worked with the Governor’s Wildfire Recovery Councils to prioritize local needs, pull in resources from state agencies, and execute a plan for economic recovery. Regional Solutions teams in the “path of totality” also supported the massive planning effort for the 2017 solar eclipse. The state’s thorough preparation allowed communities and thousands of visitors to safely celebrate this memorable event.

The state’s investments of staff time, technical assistance, and grants/loans - when aligned with county, municipal, private, philanthropic, and other funds - contribute significantly to the vitality of our state. For example, • The Mid-Valley RST has been intricately involved in the revitalization of downtown Independence and looks forward to the ribbon cutting for the its boutique hotel in 2019.

2017 Regional Solutions Projects Report i • The Metro RST was recognized for their work on the Troutdale Reynolds Industrial Park, receiving the Environmental Protection Agency’s Howard Orlean Excellence in Site Reuse Award. • The North Central team continues its work on increasing the housing supply in the Gorge – a contract is in the works that will bring 80 units to Hood River. • Economic development barriers are being reduced in Lake and Klamath counties via air quality improvements. • In eastern Oregon, the team continues to coordinate efforts on John Day’s Innovation Gateway to help the city grow and thrive.

All of this work could not happen without the assistance of the Regional Solutions partners – the Association of Oregon Counties, the League of Oregon Cities, Oregon Solutions, the Regional Solutions Cabinet and agency team members, and all of the Regional Solutions Advisory Committee members. Their collaborative, problem-solving approach to economic and community development is deeply appreciated.

2017 Regional Solutions Projects Report ii Introduction

In this report, you will see many examples of the accomplishments by Regional Solutions and its partners. This is not a comprehensive list, so if you’d like additional information about a specific region, please reach out to the Governor’s Coordinator in that area.

Regional Coordinators

North Coast – Mark Ellsworth Mid-Valley – James LaBar South Valley/Mid Coast – Jackie Mikalonis South Coast & Southern – Alex Campbell Metro – Raihana Ansary North Central – Nate Stice Central & South Central – Annette Liebe Greater Eastern & Northeast – Courtney Warner Crowell

2017 Regional Solutions Projects Report Page 1 Contents

North Coast Region (Clatsop, Columbia, Tillamook, and western Washington Counties) ...... 3 Mid Valley Region (Marion, Polk, and Yamhill Counties)...... 6 South Valley-Mid Coast Region (Benton, Lane, Lincoln, and Linn Counties) ...... 13 South Coast-Umpqua Region (Coos, Curry, and Douglas Counties) ...... 18 Southern Region (Jackson and Josephine Counties) ...... 23 Metro Region (Clackamas, Multnomah, and Washington Counties) ...... 29 North Central Region (Hood River, Sherman, and Wasco Counties) ...... 35 Central Region (Crook, Deschutes, and Jefferson Counties) ...... 40 South Central Region (Klamath and Lake Counties) ...... 45 Greater Eastern Region (Gilliam, Grant, Harney, Malheur, Morrow, Umatilla, and Wheeler Counties) ... 51 Northeast Region (Baker, Union, and Wallowa Counties) ...... 57

Frequently used acronyms

DEQ Oregon Department of Environmental Quality DLCD Oregon Department of Land Conservation and Development DSL Oregon Department of State Lands GO Governor’s Office OBDD Oregon Business Development Department (Business Oregon) ODOT Oregon Department of Transportation OED Oregon Employment Department OHCS Oregon Housing and Community Services Department OPRD Oregon Parks and Recreation Department RSAC Regional Solutions Advisory Committee RSC Regional Solutions Center RST Regional Solutions Team USACE US Army Corps of Engineers WRD Oregon Water Resources Department

2017 Regional Solutions Projects Report Page 2 North Coast Region (Clatsop, Columbia, Tillamook, and western Washington Counties)

North Coast Advisory Committee

Convener Senator Betsy Johnson, Senate District 16 Philanthropic Representative Vacant Business Representative Paul Langner, Teevin Brothers LOC Representative Mayor Suzanne Weber, Tillamook AOC Representative Commissioner Margaret Magruder, Columbia County Committee Appointment Kurt Englund, Englund Marine Group

North Coast Team

Center Address: Tillamook Bay Community College, 4301 3rd St, Tillamook, OR 97141

Governor’s Coordinator Mark Ellsworth Business Oregon, Regional Development Officer Melanie Olson Environmental Quality, Department of Jennifer Purcell Housing & Community Services Kim Travis Land Conservation & Development, Department of Patrick Wingard Transportation, Department of Jae Pudewell State Lands, Department of Lori Warner-Dickason Columbia-Pacific Economic Development District Mary McArthur

North Coast Priorities

Team Mission • Promote and sustain healthy communities through retention, diversification and expansion of the economic base. Job creation is paramount with the goal of expanding the region’s economic base while being responsible stewards of the region’s natural resources.

Regional Priorities • Sustain and grow NW Oregon businesses in areas such as aerospace, marine based industry, small manufacturing, tourism, forest products, and agriculture. • Support innovation, business incubation, and the manufacturing of new product technologies. Assist business start-ups and entrepreneurs. • Improve the readiness of industrial land by addressing wetlands, transportation access, infrastructure, and other impediments. Work to increase the number of sites that have building-ready status. • Review, streamline, and address regulatory and permitting impediments to economic development.

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• Support comprehensive solutions to barriers limiting business retention and expansion (e.g., housing, workforce development). • Work with rural communities to plan, coordinate, fund, and install needed infrastructure and advance community development and resiliency initiatives. • Bring regional support to ongoing Oregon Solutions projects (e.g., Southern Flow Corridor, Vernonia schools).

North Coast Projects

Garibaldi Wharf Revitalization

The Port of Garibaldi’s wharf was significantly damaged during severe winter storms in 2011. The RST, Col-Pac Economic Development District (EDD), the Port of Garibaldi, and the City of Garibaldi worked with the US Department of Commerce Economic Development Administration, ODOT, Business Oregon, and US Department of Transportation on over $6.5 million in repairs and enhancements to the wharf. These investments have been transformational to NW Oregon’s regional marine economy and have helped to retain 250 jobs and bring $1.8 million in private investment to the area. Today, the new wharf space is fully leased out and the RST continues to work on bringing in new marine industry activity to the Port including retaining a third ”The North Coast Regional generation fisher at the Port, who is in the process of Solutions Team has been a catalyst constructing a building to not only expand his crab bait for many successful projects across business, but to also provide a facility and services for two the region. Their diplomacy in other small marine entrepreneurs. The Ford Family bringing people together, and their Foundation has awarded Col-Pac EDD a $116,000 grant to ability to coordinate permitting support Small Commercial Fishing Industry Supply Chain and funding has been instrumental Development in Garibaldi, an initiative started through Rural in bringing much good to our Development Initiatives’ WealthWorks NW program. We are region.” Former Columbia County currently working on the development of ice-making and Commissioner Tony Hyde mobile cold storage capacity for the small commercial fishing fleet and the recreational fishing industry.

Oregon Manufacturing Innovation Center (OMIC)

This exciting and transformational project combines cutting-edge manufacturing, education, and industry partnerships to bring to Oregon a unique research center modeled on the Advanced Manufacturing Research Center in Sheffield, England. With initial funding allocated by the legislature and founding partners in place, the team is working closely with Scappoose to put in place the needed infrastructure for this most significant project. Founding partners include the Boeing Company, ATI, Blount International, Daimler Trucks North America, Hangsterfer’s Laboratories, Silver Eagle Manufacturing, and Vigor, along with Portland Community College, Portland State University, Oregon State University, and the Oregon Institute of Technology.

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Pacific Seafood

In June 2013, Pacific Seafood’s Warrenton plant burned to the ground. While insurance paid for some of the rebuild, there were extraordinary expenses associated with rebuilding this facility to modern construction and environmental standards along with work to be done on permitting and regulatory issues. Fish and shellfish processing is key to the North Coast economy, and retaining and supporting this industry yields important spillover benefits for the entire region. To this end, the Oregon Legislative Assembly approved $3.5 million in bond sales, the Governor’s Strategic Reserve Fund allocated $350,000, and Regional Solutions Regional Infrastructure Fund contributed $150,000. The team continues to work with the company and with the City of Warrenton on contracting and permitting issues.

Rainier Rail Corridor Safety Project

This regional project has become more important as rail traffic has increased along Highway 30 from Multnomah County, through Columbia County, and into Clatsop County. Currently, the Portland & Western (P&W) rail line runs down the center of the City of Rainier’s main street, with no safety features protecting residents from the train. Following rail safety studies, and various efforts over the past decade, a multi-part rail safety project is underway. Because of the significance of the safety issue, we are using a combination of federal rail safety dollars, federal highway discretionary funds, a Connect Oregon V Grant, $2 million of Regional Solutions dollars, as well as city, agency, and private dollars for the project. Final design work is now underway, with ODOT, ODOT Rail, the P&W Railroad, and the City of Rainer all having agreed to the final plan.

Tillamook Flooding – Southern Flow Corridor

In 2007, Oregon Solutions (a frequent non-governmental partner for Regional Solutions) began the Tillamook Bay Flood Reduction project with the goal of managing the impacts of flooding that had ravaged the county. Twenty individual projects, from spillways to plans for gravel removal, were designed to put infrastructure in place for the purpose of moving water through the county. Most recently, 130 acres have been acquired to open land for what may be the largest flood reduction and ecological restoration project on the west coast. To date, $10.6 million has been raised for the project which includes $500,000 of Regional Solutions dollars. A ribbon cutting celebrated this momentous project and construction is nearing completion. The team is continuing to follow and monitor the few remaining tasks still underway. Ribbon cutting celebrating completion of the project

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Mid Valley Region (Marion, Polk, and Yamhill Counties)

Mid-Valley Advisory Committee

Convener Senator Jackie Winters, Senate District 10 Philanthropic Representative Lane Shetterly, Oregon Community Foundation Business Representative Jody Christensen, McMinnville Economic Development Partnership LOC Representative Mayor John McArdle, City of Independence AOC Representative Commissioner Craig Pope, Polk County Committee Appointment Commissioner Stan Primozich, Yamhill County Committee Appointment Commissioner Kevin Cameron, Marion County Committee Appointment Mayor Kathryn Figley, City of Woodburn Committee Appointment Chris Mercier, Confederated Tribes of Grand Ronde Committee Appointment Steve Powers, City of Salem Committee Appointment Chad Freeman, SEDCOR Committee Appointment Julie Huckestein, Chemeketa Community College

Mid-Valley Team

Governor’s Coordinator James LaBar Business Oregon, Regional Development Officer Dennie Houle Business Oregon, Regional Project Manager Michelle Bilberry Environmental Quality, Department of Mary Camarata Land Conservation & Development, Department of Angela Carnahan Transportation, Department of Jae Pudewell Agriculture, Department of Gary Neuschwander Employment Department, Oregon Patrick O’Connor and Thomas Erhardt Fish & Wildlife, Department of Brian Wolfer Parks & Recreation Department Ryan Sparks State Lands, Department of Kirk Jarvie Water Resources Department Mike McCord Mid-Willamette Valley Council of Governments Renata Wakeley

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Mid-Valley Priorities

Primary Goal: Become a center for Agri-business innovation and agri-tourism • Promote regional workforce development opportunities • Increase business capital for existing and emerging businesses • Explore passenger and freight rail opportunities • Expand agri-tourism opportunities which highlight local produce, viticulture/winery operations, and visitor hospitality amenities • Enhance programs that encourage business retention and expansion • Engage in local government infrastructure assessments

Mid-Valley Projects

Independence Landing

For over a decade, downtown Independence has experienced a revitalization spurred on by a series of ventures, including municipal investments in a new streetscape for Main Street, a premiere city park and amphitheater, a new civic center, and private investments in downtown buildings and businesses. Adjacent to downtown is Independence Landing, an 18-acre, industrially-zoned property. When fully developed, the riverfront property will include housing and mixed-use development, as well as a hotel and upgrades to Riverview Park.

The RST has been intricately involved in the project from past planning to current construction phases. The initial concept plan and the vision for Independence Landing was developed with a Transportation and Growth Management Quick Response Grant from ODOT and DLCD. When asbestos was found on the site, the Business Oregon Brownfields Program promptly awarded a grant for its entire cleanup. In 2016, Regional Solutions convened an outreach meeting that identified possible opportunities/solutions for the city and its partners to explore as they work the site, Business Oregon awarded the city $2.6 million in loans for public streets and utilities, and the city was approved for a $250K Type B IOF grant to help with roadway improvements. In 2017, the City of Independence received a $415K grant from OPRD to help develop the

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Independence Landing Park. According to the city, this grant and Regional Solutions’ help is “a really critical piece that I'm not sure how we would have funded otherwise. Thanks for the help with the letter of support and everything else you've been doing for this project.” In March 2018, the boutique hotel at Independence Landing broke ground and plans to open by May 2019. The work on the park is underway and is planned to be finished by October 2018. Once the hotel is complete, the apartments will be the next construction stage for the project. Due to all of the progress at the site, there are now additional economic development opportunities in the pipeline for other lots at Independence Landing.

Salem-Keizer Career Technical Education Center

This new, state-of-the-art, 150,000 square-foot Career Technical Education Center (CTEC) in Northeast Salem serves the Salem-Keizer School District, provides regional workforce development opportunities, and contributes to agri-business innovation in the Mid-Valley region. As an innovative public-private partnership between the Mountain West Career Technical Institute (MWCTI) and the Salem-Keizer School District, CTEC is focused on helping area students develop academic proficiency, technical skills, and industry certifications, as well as the professional skills needed to assure success in careers and/or college.

“CTEC has given me the experience and assurance that I’ve needed to make the ultimate decision about what to pursue with my career.” CTEC student

When fully developed, CTEC will house 10 CTE programs, serving approximately 1,000 students, as well as a Professional Development Center. Launched in September 2015, CTEC now has programs in Residential Construction; Manufacturing, Welding, and Engineering; Cosmetology; Video and Game Design Animation; Drone Technology and Robotics, and Auto-Body Repair and Painting; and continues to expand its offerings. The programs starting in 2018-19 include Business Development and Leadership and Law Enforcement. In 2017, CTEC students graduated at a rate of 98%, compared to 72% for the district. Students are motivated by the hands-on learning, industry mentors, and possibilities for their career and educational futures. Several students from the first graduating class of 2016 have taken their new skills in welding and

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construction and directly entered the workforce, earning strong wages and meeting industry needs. Others have gone on to trade schools, community colleges, and four-year colleges.

The Regional Solutions Advisory Committee and team has assisted CTEC throughout the process. Regional Solutions invested $900,000 into CTEC to help finish building renovations and set up additional CTE programs. Additionally, Regional Solutions, DEQ, and Business Oregon have worked with MWCTI and the Salem-Keizer School District to address environmental needs for the property, which entailed approximately $600,000 of funding for the environmental work associated with the buildout of CTEC.

Detroit Lake Marinas

As a follow-up to economic development planning workshops conducted by Marion County and the Mid-Willamette Valley Council of Governments (MWVCOG) in the North Santiam Canyon (NSC), Regional Solutions has been working with the county and MWVCOG to maximize the available resources for the NSC communities. One of the projects involves the marinas at . Kane’s and Detroit Lake marinas are working collaboratively with Marion County, the U.S. Army Corps of Engineers (USACE), U.S. Congressman Kurt Schrader’s Office, and Regional Solutions to obtain permits to deepen the existing marinas. The intent of the work is to allow the marinas to operate in lower water levels and build additional resiliency into the economy as a whole.

The collaborative effort established a two-phase work plan that allows the marinas to prioritize the needs and focus the process of acquiring permits. Phase 1 was about making improvements to docking infrastructure to allow the marinas to safely reach the reservoir at lower levels, better ensuring operations from July to September, and possibly lengthening operations into September. Aspects of Phase 1 improvements were completed prior to the 2018 season, including the manufacturing and delivery of new docking infrastructure (pilings and ramps). The infrastructure is ready to be installed after the 2018 summer season. The Phase 1 improvements were also a necessary step to prepare for Phase 2 investments. Phase 2 will be the excavation of dirt under the existing footprint and a special use permit. This will allow the docks to float in even lower water levels and allow the marinas to be more resilient to potential low water years in the future. Pacific Habitat has joined the project as a consultant using Business Oregon grant funding to assist in securing the complex Phase 2 permits. In April 2018, Pacific Habitat completed its work for the Joint Permit Application with the USACE and Department of State Lands, which included a Sedimentation Evaluation Framework and Biological Assessment. These documents helped create a path for additional funding sources and tangible work plans to complete Phase 2.

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“I want to thank Regional Solutions efforts on getting these projects completed. We attempted a similar process in 2010 and 2013 without success. Regional Solutions’ ability to get the agencies involved to respond and work together made all the difference.” Scott Lunski, Detroit Lake Marina Owner

An emerging issue in the NSC is the USACE’s Detroit Dam temperature control and downstream passage project. The project entails the construction of a cooling tower and fish passage at Detroit Dam to provide juvenile fish passage for ESA-listed salmon and steelhead as well as to meet water temperature requirements. One of the most pertinent factors with this project is the spectrum of construction alternatives that are being considered. On one end, the USACE will fully drawdown the reservoir for 2+ years. On the other end, they will build “in the wet” with normal reservoir elevations. Regional Solutions is working with the local community and state agencies to communicate with the USACE on how the construction alternatives might affect the systems and organizations that ensure the economic vitality of NSC communities, the City of Salem, and the region.

Meat Processing Facility

The Mid-Valley RST is coordinating efforts with the North Central and Metro regions, the Oregon Department of Agriculture (ODA), Business Oregon, Marion County, SEDCOR, the Small Business Development Center (SBDC) and potential investors about stabilizing a meat processing business that is a USDA inspected site in the Mid-Valley. The site has been in business since the early 1900s, has a loyal following of producers and customers throughout the northwest, and serves as a critical link for meat between farms and tables.

Initial meetings focused on the future investor’s inquiries about the existing company’s land, permits, financial condition, resources, and operating environment as well as the investor’s ideal future state. Business Oregon’s Business Retention and Services grant program assisted the owner with a financial analysis, while DEQ and ODA researched the current facility’s wastewater system which may need some upgrading and expanding. Thanks to the efforts of ODA and DEQ, the existing company achieved 1400-B permit coverage, which deals with the existing company facility’s wastewater system. The permit coverage is a key ingredient for the value stream for the potential investor as well as for maintaining current conditions.

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The group identified a series of next steps, which includes further flushing out the financial model, making additional connections at OSU and the Dept. of Agriculture, maintaining the existing company, and putting together a small financial package for three interrelated feasibility studies. After a series of conversations between the potential investor and existing company, the investor decided to pursue another investment opportunity in the Mid-Valley. The existing company is still in operation while continuing to work through the challenges and opportunities identified from the assistance garnered through Regional Solutions.

Cattle rancher: “You have blown away the myth that government isn’t responsive to citizens.”

May Trucking Headquarters

May Trucking is interested in expanding its corporate headquarters and developing their 50- acre parcel near Brooks at the I-5/Exit 263 interchange. May Trucking provides transportation services for dry and refrigerated products throughout the U.S. Their customers run the gamut, ranging from companies with a big presence in Oregon such as NORPAC and Georgia-Pacific to thousands of small businesses throughout the state. Their supply chain connections also travel the other way with Daimler Truck North America and other manufacturers. Forty percent of May Trucking’s 600 employees are women or people of color, in an industry where minority employment is less than five percent. Regional Solutions has convened multiple meetings with May Trucking, Marion County, SEDCOR, Business Oregon, ODOT, and other economic development partners about the project. The partners have developed two simultaneous paths: 1) Mapping out the transportation impact analysis needs as it relates to the county’s building permit process and ODOT’s Interchange Area Management Plan (IAMP); and 2) Understanding the economic development trends and opportunities for a portion/all of the 50 acres.

The project reached milestones on both paths. For the first path, the kick-off for the Brooklake Road/I-5 Interchange Transportation study occurred in April 2018. The kickoff discussed the study’s scope, schedule, expectations, and upcoming tasks. The main expectation is to produce safety, operational, and economic development certainty through the study findings for a range of customers from May Trucking to the City of Keizer. The study will be completed by the fall of 2018. On the second path, SEDCOR provided May Trucking with the economic development trends and opportunities, which will be incorporated in the study’s findings. DKS Associates, the transportation consultant conducting the study, remarked at the kickoff meeting that they rarely have seen this type of collaboration between “developers” and the public sector with the cost-sharing and early planning efforts.

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Newberg Crestview Drive Enhancements

The Newberg-Dundee By-pass has changed the traffic patterns in the City of Newberg in 2018. The Crestview Drive project encompasses three segments of a major collector roadway, and it will function as a relief valve for the new congestion on the city’s local grid system. The improved road would provide an alternative route for more than 1000 A-dec employees and, more importantly, the company’s freight movement. The improved road also would improve access and/or open more than 80 acres of land for commercial, retail, and industrial development. The project also would provide increased access to vineyards and wineries north of Newberg and the Allison Inn & Spa, which is one of the “Top 25 Luxury Hotels of the .” Regional Solutions has invested $740,000 in the Crestview Drive project to help with construction of Segment 1 as early as FY 16/17 and design work beginning for Segment 2 and 3 in FY 17/18. Regional Solutions convened multiple meetings with the U.S. Army Corps of Engineers, DEQ, and DSL with the project’s principle partners: City of Newberg, Gramor Development, and Springbrook Properties. As a result of the meeting, all parties received additional information about the project and permitting processes for the removal/fill wetlands permits. The principle partners will be resubmitting documents to the USACE and DSL in the late summer of 2018. The City of Newberg expects to receive land use applications in June 2018 for Planned Unit Development and Conditional Use for the Crestview Crossing project. Construction is scheduled to start in April 2019 for Segments 1, 2 and 3.

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South Valley-Mid Coast Region (Benton, Lane, Lincoln, and Linn Counties)

South Valley-Mid Coast Advisory Committee

Convener Senator Lee Beyer, Senate District 6 Philanthropic Representative Casey Woodard, Casey Woodard Consulting Business Representative Nick Fowler, Orion Ventures LOC Representative Mayor Biff Traber, City of Corvallis AOC Representative Commissioner William Tucker, Linn County Committee Appointment Commissioner Annabelle Jaramillo, Benton County Committee Appointment Commissioner Doug Hunt, Lincoln County Committee Appointment Commissioner Pat Farr, Lane County Committee Appointment Brenda Bremner, Confederated Tribes of Siletz Indians Committee Appointment Gregory Hamann, Linn-Benton Community College Committee Appointment Birgitte Ryslinge, Community College Committee Appointment Mark Lieberman, Oregon State University Committee Appointment David Conover, University of Oregon Committee Appointment John Pascone, AMEDC Committee Appointment Julie Manning, Samaritan Health Services

South Valley-Mid Coast Team

Center Address: University of Oregon, 1715 Franklin Blvd, Room 225, Eugene, OR 97403

Governor’s Coordinator Jackie Mikalonis Business Oregon, Regional Development Officer Melissa Murphy Environmental Quality, Department of Mary Camarata Housing & Community Services Kim Travis Land Conservation & Development, Department of Patrick Wingard Transportation, Department of Jae Pudewell State Lands, Department of Kirk Jarvie

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South Valley-Mid Coast Priorities

Entrepreneurial Ecosystem • Encourage business incubation, acceleration, manufacturing and new technologies • Encourage and support an entrepreneurial culture and ecosystem • Leverage research corridor • Access to capital strategy – develop resident capital and access to capital investment • Venture Capital and Commercialization – support mentoring related to capital access and product development, as well as networking opportunities with other innovators • Support both emerging entrepreneurs and established companies • Promote regional workforce readiness Housing • Housing and Manufactured Housing/Economic Development Land Use and Economic Development • Improve the readiness of industrial land o Address uncertainty and permit streamlining on wetlands o Support rural industrial development opportunities o Encourage creation of quality industrial flex-space o Increase number of certified industrial sites o Support time to market initiatives Transportation • Transportation systems • Improve access to markets via improved transportation systems • Energy and Transportation - support alternative fuel and energy industry and alternative energy advancement o Infrastructure and broadband o All modes . Rapid rail . Transit . Air . Ports

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South Valley-Mid Coast Projects

Mid Valley Intermodal Transload Facility

International trade is an important component of the Oregon economy. Many high volume/high value agricultural products rely on a multi-node, multi-modal network composed of local, regional, interstate, and international facilities. The Trade and Logistics Initiative and Governor’s Transportation Vision Panel recommended looking into locating a transloading facility (i.e., facilities that facilitate transfer of product between rail and truck modes, in particular) in the mid to south Willamette Valley that would receive container semi-trucks, move containers to trains, and ship them via rail to ports and other rail yards with container rail service. Regional Solutions worked with ODOT, Department of Agriculture, Business Oregon, and the private sector to complete a transload feasibility study. The 2017 Legislative Session passed House Bill 2017 providing $25 million for the development of this regional project. Train transfer to west coast ports will help Oregon businesses move freight to markets, compete globally, and retain and create jobs. In response to a request for pre-proposals, ODOT received six applications for locations in Linn, Lane, and Marion counties and Regional Solutions is coordinating with ODOT to proceed with intergovernmental agreements for the planning portion of the proposals that are deemed sufficient and complete. Regional Solutions will continue to work through ODOT to help align state agencies and other partners to ensure the project progresses.

Mid Coast Water Planning Partnership

The Mid-Coast Region (Lincoln County) is one of four areas in the state piloting a new approach to water planning with the Oregon Water Resources Department. This approach, which was recommended in Oregon’s 2012 Integrated Water Resources Strategy, encourages integrated planning at larger scales and gives communities a greater voice in determining their water future. Local groups are partnered with state agencies to test a set of draft planning guidelines, identify best practices, and develop a plan for action. In addition to providing a road map for the mid-coast, the plan will inform future updates to Oregon’s statewide water strategy. Recent accomplishments include agreement on a common understanding of the water system and challenges, data gap identification, quantifying current and future need, and completion and review of technical reports. In terms of sustainability, the partnership was awarded funds from the Meyer Memorial Trust which, in combination with Oregon Community Foundation and US Army Corps, provides the project with $275,000 needed to fund activities from November 2017 to December 2018. This adds to the $270,000 already contributed by OWRD and the City of Newport to initiate this effort. Regional Solutions will continue to provide state agency alignment; resource development; and outreach, technical and organizational assistance. Next steps include working with water suppliers, cities, water districts, tribes, state and federal agencies, and industry to develop regional solutions and create an action plan for adequate future water supplies.

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Bioscience Enhancement

Regional Solutions works with the Oregon Translational Research and Development Institute (OTRADI), the bioscience private sector, start-ups, councils of governments, the University of Oregon, Oregon State University, and many local government economic development entities on addressing needs of the growing bioscience industry in this part of the Willamette Valley. The RST, through Business Oregon and the City of Eugene, is helping NemaMetrix, a Eugene based company, expand into more lab space and increase their workforce. NemaMetrix specializes in a system that enables scientists and researchers around the world to explore potential medications and treatments for serious diseases. They received Oregon Nanoscience and Microtechnologies Institute (ONAMI) gap funding while commercializing their product and went through the Regional Accelerator and Innovation Network (RAIN). Through Business Oregon and approved by the Governor, NemaMetrix received a $199,000 Strategic Reserve Fund (SRF) award to purchase biological material and assist with expansion plans, retaining 10 jobs and hiring 14 new positions. Regional Solutions assisted with their efforts to acquire a complementary company in Utah by meeting with the associates and highlighting the suite of business assistance resources available in Oregon. The SRF award also ensures NemaMetrix will act as an anchor to support the expansion of the Fertilab Incubator space in Eugene where they are currently located. Bioscience wetlabs are in great demand in the region.

Wood Smoke Mitigation/Oakridge Resource Development

Since 2009, the Environmental Protection Agency (EPA) designated Oakridge as a “non- attainment” area for the air quality standards for fine particulate matter due to wood stove smoke. In 2016, EPA posed to move Oakridge from non-attainment status to “serious” non- attainment status based on a three year average of air quality results. This “serious” designation would include sanctions that can dampen new economic growth and disqualify Oakridge from receiving federal funds. Regional Solutions worked with community partners and local and federal agencies to develop and implement a smoke mitigation plan. Without any funding to implement the strategies developed in the plan, Regional Solutions outlined a plan to acquire resources by developing a collaborative Oregon Solutions project. Along with Senator Floyd Prozanksi and Oakridge Mayor Jim Coey, partners signed the Oregon Solutions Declaration of Cooperation committing to resource development and air quality actions. Partners include Oakridge, the Lane Regional Air Protection Agency, DEQ, Lane County, US Forest Service, Lane County Housing Authority, Lane Electric, South Willamette Forest Collaborative, Regional Solutions and Good Company. Regional Solutions developed and wrote the pre-assessment that culminated in this Oregon Solutions project. The partners were very satisfied with the level of collaboration by a diverse group and discovered potential paths and resources that will lead to funding specific strategies. The group will continue to meet and work toward acquiring resources even though the official Oregon Solutions project has concluded.

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RAIN – Regional Accelerator Innovation Network

RAIN continues to be a regional collaboration of government, higher education, and the business community working to advance the formation of high-growth, innovative startup companies. Building off the state’s previous investment in RAIN, in 2017 Regional Solutions helped RAIN expand to the coast. RAIN assisted entrepreneurs from Florence to Lincoln City launch and scale up their new businesses, providing educational and networking events, business mentors, and access to investors. RAIN did two coastal 12-week pre- accelerator programs, one in Florence and one in Newport. This culminated in RAIN assisting 43 companies, 11 going through the pre-accelerator program, and the creation of 33 full-time jobs. State investment in RAIN leveraged $89,500 in funding for the rural/coastal effort from the Ford Family Foundation, Lincoln County, City of Florence, City of Newport, City of Lincoln City, City of Toledo, Oregon Pacific Bank, and Palo Alto Software. It’s RAIN(ing) in Florence Governor Brown!

In addition, the RAIN accelerators in Eugene and Corvallis assisted 190 startup companies, which earned more than $3 million in revenue, attracted more than $6 million of investment, and created over 40 jobs between July 2017 and March 2018.

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South Coast-Umpqua Region (Coos, Curry, and Douglas Counties)

South Coast-Umpqua Advisory Committee

Convener Commissioner Keith Tymchuk, Port of Umpqua Philanthropic Representative James Seely, Wild Rivers Coast Alliance Business Representative David Kronsteiner, West Coast Contractors LOC Representative Councilor Jim Auborn, City of Port Orford AOC Representative Commissioner John Sweet, Coos County Committee Appointment Commissioner Chris Boice, Douglas County Committee Appointment Commissioner Sue Gold, Curry County

South Coast-Umpqua Team

Governor’s Coordinator Alex Campbell Business Oregon, Regional Development Officer Sean Stevens Business Oregon, Regional Project Manager Tawni Bean Environmental Quality, Department of Kate Jackson Housing & Community Services Kim Travis Land Conservation & Development, Department of Dave Perry & Josh LeBombard Transportation, Department of Mark Usselman Agriculture, Department of Yelena Nowak State Lands, Department of Kirk Jarvie

South Coast-Umpqua Priorities

• Access to Natural Resources, Support of Natural Resource Economy, and Active Forestry Management on O&C Timber Lands • Business Retention, Expansion, and Creation o Workforce training o Regulatory streamlining, technical assistance o Population retention • Enhance Marine, Rail, and Telecommunication Infrastructure • Build on Recreation Economy • Alternative Energy Development • Community Resilience

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South Coast-Umpqua Projects

Back Nine Redevelopment

The Back Nine site is approximately 130 acres, immediately north of Roseburg adjacent to I-5, and was formerly a Roseburg Forest Products site. Due to limitations of topography and wetlands, flat, developable industrial land is a very limited resource in the area and bringing this industrial park on line is a critical element to fulfilling Douglas County’s economic development potential. In 2016, the first two potential users for the site were identified, and, with State of Oregon support (in the form of a Special Public Works Fund (SPWF) grant) Roseburg Urban Sanitary Authority (RUSA) began design of a wastewater collection system to serve the site. The property owners had already previously installed a water distribution system.

Milestones • Construction plans and specifications for the new wastewater collection system were completed in August. • Douglas County Board of Commissioners approved a Grant Agreement between Douglas County and Back Nine Development, LLC to provide $925,000 for the construction of a sewer system for the RUSA (total construction cost is expected to be approximately $1 million). • As of January 2018, construction of the collection system is substantially complete (the connection to the larger conveyance system awaits dryer weather).

 Installation of a new lift station to provide wastewater service to the Back Nine industrial site

Storm drain construction is currently underway, with the curbs and asphalt for an internal circulation road to follow, which will allow the completion of the sub-division process and sale of lots. Multiple purchasers are anxiously awaiting availability of lots. Job creation from the first round of occupants, including a large regional distribution center, will likely be at least 50+ jobs.

RST contributions (OBDD, DLCD, ODOT, DSL, and GO) include:

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• Identification and assistance with the SPWF grant for design of the wastewater collection. • Development of an Immediate Opportunity Fund application to assist with road construction costs (this was ultimately not pursued due to timing issues and the additional costs associated with public funding). • Assistance with communications to US Army Corps of Engineers to maximize the build- able footprint of the property by applying excess mitigation credits. • Coordination of discussion with state agencies (ODOT and DLCD) regarding allowable uses and road construction design standards.

Umpqua Valley Wetlands Credits

The lack of a wetlands bank in the Umpqua Valley has been a long-recognized barrier to development. The Department of State Lands (DSL) has been working to address that issue through the sale of In-Lieu Fee credits. In order to continue selling those credits, the state needs a mitigation bank on the ground. North Douglas Betterment (a non-profit in Yoncalla, Oregon in northern Douglas County) owns two large former log ponds that could be converted to wetlands, with the potential to create 30 or more credits (i.e., 30 acres of wetlands).

Milestones • In July, DSL issued an intent to award a purchase contract to North Douglas Betterment. The initial purchase of wetland credits, which can take place once a wetlands bank prospectus is approved, would provide the capital infusion necessary to construct the first phase of the new bank. • In December, Business Oregon provided a $60,000 grant to North Douglas Betterment to fund some additional environmental characterization work necessary to the bank’s approval.

RST members (DEQ, DSL, OBDD, and GO) have assisted with project development, funding strategies, and technical assistance in multiple phases of the project.

Project Gem

Project Gem is a business recruitment project with an identified target site in the Coos Bay area. The company is international and already operates one U.S. location on the east coast. They are seeking a west coast location with good port access where it would process and clean imported garnet sand (garnet sand has multiple industrial applications). The company has acquired a location near the International Port of Coos Bay that was formerly owned/operated by Oregon Resources Co. The project would result in roughly 25 new jobs, with an average total compensation of over $50,000 per year, and generate additional economic activity for the port.

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Milestones • In December, the company filed a request for a Prospective Purchaser Agreement from DEQ, which would shield them from liability due to any environmental contamination due to prior use of the site. • The company closed on the purchase of the site in early 2018. • The company’s Oregon Investment Advantage application was certified in April, providing for a state corporate income tax reduction.

RST members (OBDD, DEQ, and GO) have been supporting the local partners in the recruitment, in particular with assistance in developing an achievable time-line for securing a permit to discharge wash water to Coos Bay. Business Oregon is also working on a possible incentive package for the company. Total project investment is expected to be $17.5 million.

Chetco Bar Fire Recovery

Regional Solutions has been working regularly with the community of Brookings and others impacted by the Chetco Bar Fire.

Milestones • October - RST members arranged for multiple agencies including Travel Oregon, Department of Consumer and Business Services, and the Small Business Development Center (SBDC) to participate in an “After the Fire” resource fair to provide information to small businesses. • November - Oregon Water Resources Department approved an emergency grant to the City of Brookings to evaluate potential impacts of expected additional siltation in the Chetco River as a result of the fire on municipal drinking water. • November - The Small Business Administration announced that Economic Injury Disaster Loans would be made available to businesses impacted by the Chetco Bar Fire. This action was justified primarily by completed interest forms collected by RST members and the local SBDC. • December - The Chetco Bar Fire Recovery Council, which was staffed by Regional Solutions, submitted a report to the governor’s office identifying priority community needs to support economic and natural resource recovery. Many of those needs have been addressed through the creative use of existing state resources, including securing a DLCD grant to develop a new economic development strategy for the area and an Oregon Watershed Enhancement Board pilot project to assist local agencies in select priority areas for restoration work.

“Just a moment to extend gratitude for your diligent effort in our special Curry Corner of Oregon … You contribute greatly – much appreciated … a super aid to Oregon and excellent resource!!” Court Boice, Curry County Commissioner & member of the Chetco Bar Fire Recovery Council

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RST members (OBDD, DLCD, and GO) staffed the Recovery Council, worked with impacted businesses, and identified state resources to assist local agencies in recovery. Based on the needs identified by the Recovery Council and RST, the Governor requested $500,000 in lottery funds for the Local Economic Opportunity Fund, which was approved by the legislature in the February 2018 session. This will enable the state to capitalize the program and leverage federal dollars to support economic planning and projects critical to local communities, particularly in rural areas and for communities whose economies are vulnerable to natural disasters. The RST also worked with DLCD to award $40,000 to Brookings for economic planning, leveraging an additional $50,000 from the US Economic Development Administration, and Travel Oregon contributed $5,000.

Whiskey Run Mountain Biking Trail

Whiskey Run Mountain Biking Trail is the first mountain-bike specific trail on the south coast. The project was a collaboration of Coos County, which owns the land, and the Wild Rivers Coast Mountain Biking Association (WRCMBA) to promote tourism and recreation. Funding was provided by Wild Rivers Coast Alliance, OPRD, and Regional Solutions Regional Infrastructure Fund (RIF) dollars—which funded youth work experience as part of the labor to construct the trail. Wild Rivers Coast Alliance contributed $25,000 to develop a regional trails plan that identified the opportunity. Total construction cost for the trail was approximately $350,000, with $250,000 funded by OPRD, and the balance paid for about equally by the Southwestern Oregon Workforce Investment Board and RIF.

The workforce investment board and RIF funding for the project was specifically to incentivize the use of youth (young adult) work crews. Those funds paid for both their labor and additional work-readiness counseling for those workers. About 1,750 youth work crew hours were completed and the 12 participants received over 150 hours of training and counseling. Young adults who were neither currently in school nor employed were targeted and recruited to participate.  The Whiskey Run Mountain Biking Trail

Milestone • The trail was opened for public use in November 2017 (eight of the 11 planned miles were opened, construction to complete the rest will resume in early 2018).

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Southern Region (Jackson and Josephine Counties)

Southern Advisory Committee

Convener Bill Thorndike, Medford Fabrication Philanthropic Representative Kathy Bryon, Gordon Elwood Foundation Business Representative Steve Roe, Roe Motors LOC Representative Councilor Jonathan Bilden, City of Eagle Point AOC Representative Commissioner Rick Dyer, Jackson County Committee Appointment Commissioner Lily Morgan, Josephine County Committee Appointment John Roberts, Oregon Water Resources Commission Committee Appointment Dr. Linda Schott, Southern Oregon University

Southern Team

Center Address: 100 East Main St., Suite A, Medford, OR 97501

Governor’s Coordinator Alex Campbell Business Oregon, Regional Development Officer Marta Tarantsey Business Oregon, Regional Project Manager Tawni Bean Environmental Quality, Department of Kate Jackson Housing & Community Services Kim Travis Land Conservation & Development, Department of Josh LeBombard Transportation, Department of Art Anderson Agriculture, Department of Amy Gilroy Fish & Wildlife, Department of Russell Stauff State Lands, Department of Kirk Jarvie

Southern Priorities

• Active Forestry Management on O & C Timber Lands • Maintain and Enhance Forest Industry Infrastructure • Business Retention, Expansion, Creation, and Recruitment • Regulatory Streamlining • Water Conservation and Stream Restoration • Workforce Training • Downtown Revitalization • Agricultural Economy • Recreational Economy • Community Infrastructure • Housing Affordability

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Southern Projects

Grants Pass Airport Taxiway

Regional Infrastructure Fund (RIF) dollars paid for the design of a new Grants Pass airport taxiway that addresses a serious safety issue and increases development opportunities at the airport. The prior arrangement required users of the hangars on the left side of the picture below to cross the main runway (seen at right) to access the airport entrance.

The RIF “grant was incredibly helpful in securing the FAA grant for the construction.” Larry Graves, Airport Manager

The total project cost was approximately $1.7 million. RIF dollars covered almost all of the design phase ($284,000). Construction of the taxiway was funded primarily by the Federal Aviation Administration (FAA), with Oregon Department of Aviation Critical Oregon Airport Relief (COAR) funds and Josephine County each contributing roughly $70,000. Airport manager Larry Graves noted that the RIF “grant was incredibly helpful in securing the FAA grant for the construction.” Prior to the commitment of RIF dollars the project was not included in FAA’s five-year capital improvement plan. Subsequent to that decision, the project was advanced to the next possible construction year.

 Grants Pass Airport taxiway under construction

Milestone • The new taxiway went into service in December 2017 and has effectively eliminated all of the unsafe runway crossings that had been occurring on a routine basis.

The new taxiway has also opened up a large area on the north side of the airport for commercial aviation development and it is expected that this development will begin in 2018.

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Housing Affordability

The Southern Oregon Regional Solutions Advisory Committee adopted housing affordability as a regional priority in early 2017 and team members have been very active in multiple ways. For example, Employment Department researchers have documented the growing imbalance between housing costs and wages—and have presented this information at numerous public events.

The regional DLCD staff has led the development of a regional housing strategy, jointly funded by local jurisdictions, which includes numerous development code revision suggestions for the individual participating cities and other policy recommendations. Several of these recommendations were recently adopted by the City of Medford, including a construction excise tax to fund affordable housing; System Development Charge waivers for residential-over- commercial and affordable housing; and process streamlining for multi-family construction.

In addition, team members have been supporting the development of the Gateway mixed-use development project led by the City of Talent’s urban renewal agency by identifying possible state resources and possible developers. DLCD has provided a technical assistance grant to provide the selected prospective developer detailed market demand and feasibility data.

Milestones • Talent Urban Renewal Agency (TURA) released a Request for Expressions of Interest in August 2017. • The agency selected local developer DOSO Properties to partner with the city and TURA on this project.

 The Gateway project site sits between Oregon Highway 99 and downtown Talent

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Grants Pass Irrigation District (GPID)-Sand Creek Disaster

In December 2016, during a high rain event, a GPID canal and Sand Creek, which ran parallel to the canal, both suffered major erosion and merged course. About 875 feet of the canal was completely washed away, leaving several hundred acres potentially without irrigation, and the creek channel was down-cut about 10 feet. With disaster assistance from FEMA, GPID put a temporary repair in place in the spring to allow the system to function for the irrigation season. This past fall a permanent repair/re-design of that portion of the irrigation district’s system— and restoration of the creek bed—was completed.

Milestones • Construction of a permanent repair began in October. The district buried the pipe under the Sand Creek channel, did channel and bank restoration work, and built two new outfalls for release of stormwater from the canals. • Construction was completed in December.

The combined cost of the temporary and permanent fixes was approximately $1.7 million. FEMA reimbursed the district for 75% of that cost (the storm that caused the damage was a “declared” disaster) and Business Oregon financed the balance with a package that included both a no-interest loan and a grant. The National Resource Conservation Service did the bank planting and restoration design as an in-kind contribution.

The RST (DEQ, OBDD, and GO) assisted with permit coordination, removal of obstacles and time delays on the federal and state permits, and securing the state funding contribution.

 Sand Creek after the storm with debris from damaged GPID infrastructure

 The temporary fix that allowed irrigation flows in summer 2017

 The restored Sand Creek stream bed. The yellow circle in the fore-ground is an access panel to allow maintenance of the buried irrigation pipe.

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Josephine County and Grants Pass both acknowledge the area’s reliance on the GPID canal system to manage stormwater. Their stormwater master plans clearly describe the overlapping systems. GPID has been negotiating legal agreements with each that would provide the district with maintenance funds. This issue is under litigation. The subject of irrigation and drainage districts receiving stormwater is complicated (both in the physical systems and the legal responsibility) and of increasing concern to regulatory agencies, regulated communities, and the legislature. DEQ RST staff is interested in continuing to coordinate local projects to learn ways to best address this complicated reality.

Water for Irrigation Streams and Economy (WISE)

This ambitious project envisions an integrated and modernized piped irrigation system for the southern Rogue Valley. The existing open canal system suffers high loss rates from evaporation and, in particular, seepage. A piped system has major benefits in terms of water conservation and water quality (the current system interacts with fish bearing streams in ways that negatively impacts water quality) and would create hydro-electric generation opportunities. The State of Oregon has contributed $1.5 million for engineering and design, which is being managed by the Bureau of Reclamation.

Milestones • HDR and the WISE board officially kicked off the preliminary engineering effort in August. The first phase of work focuses on affirming the base-line project definition, particularly the balance between providing pressure to all users versus maximizing hydro-electric generation capacity. • In October, WISE members and project stakeholders participated in a detailed workshop with a consultant team that is studying the existing water rights and developing plans for how those rights can be managed in the future.

RST members (OBDD, DEQ, and GO) are key members of the project staff team and assist with grant management, stakeholder outreach, and strategy work.

North Valley Industrial Park (NVIP)

NVIP is one of very few developable industrial land areas in Josephine County and is home to Dutch Bros headquarters. It is currently (under-)served by a wastewater treatment facility managed by the school district. The existing plant has compliance issues and is a barrier to further development of several vacant parcels. Business Oregon has funded and Civil West has completed a Preliminary Engineering Report outlining several alternatives to serve the existing development, the Grants Pass airport, and potential new industrial development.

Milestones • In August, the engineering team made a presentation to the Josephine County Board of Commissioners summarizing their findings. Commissioners were interested in moving

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forward with the project and made plans to hire a dedicated project manager to move forward into design and district formation. • In November, a team of DEQ employees visited the proposed drain field site to perform dozens of “perk tests” to assess the viability and scale of the preferred alternative.

RST members (OBDD and DEQ) are assisting with grant management and consultation with agency regulators.

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Metro Region (Clackamas, Multnomah, and Washington Counties)

Metro Advisory Committee

Convener Catherine Ciarlo, City of Portland Philanthropic Representative Vacant Business Representative Janet LaBar, Greater Portland Inc. LOC Representative Commissioner Nick Fish, City of Portland AOC Representative Commissioner Martha Schrader, Clackamas County Committee Appointment Commissioner Lori Stegmann, Multnomah County Committee Appointment Commissioner Roy Rogers, Washington County Committee Appointment Tom Hughes, Metro Committee Appointment Carl Talton, Portland Family of Funds Committee Appointment Dave Robertson, PGE Committee Appointment Kristen Leonard, Port of Portland

Metro Team

Center Address: Portland State University, Market Center Building, 1600 SW Fourth Ave, Suite 109, Portland, OR 97201

Governor’s Coordinator Raihana Ansary Business Oregon, Regional Development Officer Bryan Guiney Environmental Quality, Department of Cheryl Grabham Housing & Community Services Kim Travis Land Conservation & Development, Department of Jennifer Donnelly & Anne Debbaut Transportation, Department of Vacant Agriculture, Department of Erick Garman Building Codes Division Tom Phillips Employment Department Christian Kaylor Energy, Department of Roger Kainu Fish & Wildlife, Department of Jeff Boechler Parks & Recreation Department MG Devereux State Lands, Department of Lori Warner-Dickason Water Resources Department Mike McCord

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DRAFT - Metro Priorities - DRAFT

Vision The Portland-Metro region (Clackamas, Multnomah, and Washington Counties) is livable and prosperous for all residents.

Mission Advance community and economic development priorities for the metro region by solving complex problems, developing innovative solutions, and leveraging resources.

Priorities Inclusive Economic Development: Grow and retain businesses and quality jobs to help ensure that all Oregonians have the opportunity to reach their full potential and thrive.

Strategies and Actions: • Support growth and expansion of middle-income and traded-sector jobs and industries, including established and emerging clusters. • Prioritize projects that advance inclusive economic development and incorporate anti-displacement measures. • Prioritize projects (rural and urban) that address inequity in the region (i.e., include Minority, Women, Emerging Small Business (MWESB) contractors, benefit underserved populations, etc.) • Evaluate loans and grants to ensure financial resources address disparities.

Workforce Development: Bolster efforts to train and employ Oregonians for current and emerging markets.

Strategies and Actions: • Encourage local hiring and the procurement of minority-owned, women-owned, and emerging small businesses in projects. • Look for job skill training and career pathway opportunities associated with projects.

Housing: Promote affordable and workforce housing development.

Strategies and Actions: • Provide regulatory certainty and streamline state permitting processes for affordable and workforce housing development. • Provide technical assistance and resources to help increase the supply of affordable and workforce housing.

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Infrastructure: Modernize the region’s key transportation and infrastructure systems.

Strategies and Actions: • Provide technical assistance and resources to promote a strong multimodal transportation network for the safe and efficient movement of goods and people. • Provide technical assistance and resources for infrastructure systems including sewer and clean air and water.

Metro Projects

Levee Ready Columbia (LRC)

Since 2014, Oregon Solutions’ Columbia Levee Improvement Project has been focused on the challenges faced by the 45 mile Columbia Corridor levee system along much of the south shore of the Columbia River in Multnomah County. The Oregon Solutions team has been working together to develop a strategy and work plan to ensure the levee system meets both Federal Emergency Management Agency (FEMA) and US Army Corps of Engineers (USACE) standards. This effort has brought together key stakeholders including Metro Regional Solutions; Multnomah County Drainage District #1 (MCDD) and four other drainage districts; Metro; Multnomah County; Cities of Portland, Fairview, Gresham, and Troutdale; Port of Portland; business groups; neighborhood associations; environmental groups; and non-profit organizations to develop a project team that is focused on ensuring the levees remain accredited. The levees reduce the risk of flooding to over $7.3 billion of property value, over 7,500 residents, and the Portland International Airport.

In 2016, LRC received $300,000 from Regional Solutions to support project elements that Business Oregon’s Infrastructure and Financing Authority loans could not be spent on. Of these funds, $100,000 was used for community outreach efforts and Oregon Solutions facilitation. The remaining $200,000 was split between the four Columbia Corridor drainage districts ($226,000) and Sauvie Island Drainage Improvement Company ($34,000). The Columbia Corridor Drainage Districts plan to apply for another Regional Infrastructure Fund grant to help bring the project from the planning and scoping phases to construction. Meanwhile, Regional Solutions and Business Oregon have aligned $100,000 to support work at Peninsulas 1 and 2.

Finally, the LRC governance subcommittee is recommending a water improvement district with the establishment of a 190 agency (free-standing agency) as a backup alternative for long-term governance of the levee system. A water improvement district would need to be established by petitioning Multnomah County Commissioners or by initiation by the Multnomah County Board of Commissioners. For the 190 agency, the various cities (Portland, Gresham, Fairview, and Troutdale) would enter into an agreement under Oregon Revised Statutes 190 to form a new public agency for the purpose of flood risk reduction. This governance option will be presented to the project executive committee at a future meeting for their consideration and approval.

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Willamette Falls Legacy

Oregon City’s Willamette Falls - the largest waterfall in the Pacific Northwest - is a horseshoe-shaped basalt cascade that divides the upper and lower reaches of the Willamette River. The former Blue Heron Mill site, located next to the falls, was sold to Falls Legacy, LLC after years of abandonment. The public partners including Oregon City, Clackamas County, Metro, and the State of Oregon (Metro Regional Solutions and Oregon State Parks) and Falls Legacy, LLC have been working together to develop a vision and master plan to repurpose the site including the construction of a publicly accessible river walk. The State of Oregon has allocated $12.5 million toward the project with expenditures limited primarily to construction.

Metro Regional Solutions will continue to provide guidance on the project as a public partner. The public partners recently directed staff to proceed cautiously with the project by initiating the joint permit application that is required by the Department of State Lands and the US Army Corps in order to begin phase 1 of the project (construction of the public river walk). Meantime, Regional Solutions and Oregon State Parks requested that staff work on a risk assessment to present to the partners at the next quarterly meeting in September 2018 and in advance of spending project funds on site survey work. Metro Regional Solutions will also provide technical and permitting assistance where applicable.

“It has been extremely valuable to have the Regional Solutions Team be part of the Willamette Falls Legacy Project Partnership. Most recently, their support has helped the project navigate complexities relating to site contamination. Having the relationship in place has allowed us to anticipate and avoid regulatory hurdles, plan effectively for clean-up, and pursue grants that will ensure the project is delivered within expected timelines. We look forward to their continued participation as a Willamette Falls Legacy Project Partner.” Project Manager Brian Moore, Metro

Troutdale Reynolds Industrial Park (TRIP)

The former Reynolds industrial site, owned by the Port of Portland, is uniquely situated to create family wage jobs in outer east Multnomah County where a third of residents fall below the self-sufficiency standard. This former superfund site has the potential to create an additional 3,500 traded sector jobs within the Metro urban growth boundary.

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The Metro RST received an Environmental Protection Agency (EPA) Howard Orlean Excellence in Site Reuse Award for its streamlined permitting and regulatory work to help get the TRIP site shovel ready. The EPA hosted an award ceremony at the FedEx Ground facility at TRIP with other local, state, tribal, federal, and private-sector partners who worked hard to convert the former brownfield site into a thriving industrial jobs center.

EPA Howard Orlean Excellence Award Ceremony

Metro Regional Solutions is working with the Port of Portland, Worksystems, and other partners to inform local residents in outer east Multnomah County of job opportunities at TRIP including those that are anticipated to be created by the opening of the Amazon Distribution Center in summer 2018. These jobs will likely require a high school diploma or equivalent (General Educational Development) and English language proficiency.

Blue Lake Corporate Park

The site is zoned industrial but was historically a farm. It has not been in operation as a farm for quite some time and has sat inactive. The area adjacent is zoned residential where Fairview Lake residents live. Trammel Crow seeks to develop a 371,280 square foot industrial space that they envision could attract a warehouse distributor, light manufacturer, or an e-commerce company due to market demands and the site’s proximity to Interstate 84 and the Portland International Airport. They estimate the development would generate 100 – 500 middle income jobs and add $20 – 40 million to Multnomah County’s tax base. It is a priority project for the city of Gresham.

Metro Regional Solutions convened meetings between the city of Gresham, Trammel Crow, and state agencies including the Department of State Lands (DSL) and the Department of Environmental Quality (DEQ) to work through wetland delineation and other permitting and regulatory issues. DSL approved the Removal-Fill Permit and wetland delineation issues have been addressed, a prospective purchaser agreement has been approved by DEQ and is ready to

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execute at land sale closing. Metro Regional Solutions continues to track the project and stands ready to help facilitate additional interagency coordination to help ensure the project continues to move forward.

Eagle Creek Fire Recovery Council

Metro and North Central RSTs staffed the Governor’s Eagle Creek Fire Recovery Council, which was co-chaired by Mark Johnson and Senator Chuck Thomsen. The council was established by the Governor to identify economic, environmental, and public safety impacts of the Eagle Creek Fire, to mobilize and deploy available state resources to communities, and to identify unmet needs.

In the weeks following the outbreak of the fire, the RSTs organized an on-the-ground presence in Cascade Locks to help impacted workers gain access to employment benefits and other vital services. Over 200 individuals attended that session. The teams also distributed information on resources to businesses impacted by the fire.

Based on the needs identified by the Recovery Council and RSTs, the Governor requested $500,000 in lottery funds for the Local Economic Opportunity Fund, which was approved by the legislature in the February 2018 session. This will enable the state to capitalize the program and leverage federal dollars to support economic planning and projects critical to local communities, particularly in rural areas and for communities whose economies are vulnerable to natural disasters. To help address the Recovery Council’s identified public safety needs, the Governor supported HB 4152, which also passed in the February 2018 session. This bill allocates $150,000 for training and specialized equipment to the Hood River and Multnomah County Sheriff’s Offices for wildfire recovery, mitigation, and preparedness.

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North Central Region (Hood River, Sherman, and Wasco Counties)

North Central Advisory Committee

Convener Mike McArthur, Association of Oregon Counties Philanthropic Representative Celeste Hill-Thomas, Mid-Columbia Health Foundation Business Representative Scott Reynier, Columbia River Insurance LOC Representative Mayor Stephen Lawrence, City of The Dalles AOC Representative Commissioner Rod Runyon, Wasco County Committee Appointment Judge Gary Thompson, Sherman County Committee Appointment Commissioner Rich McBride, Hood River County Committee Appointment Mayor Carol MacKenzie, City of Wasco Committee Appointment Mayor Paul Blackburn, Hood River Committee Appointment Dan Spatz, Columbia Gorge Community College Committee Appointment Amanda Hoey, MCEDD Committee Appointment Andrea Klaas, Port of The Dalles Committee Appointment Ken Bailey, Orchard View Farms Committee Appointment Maui Meyer, Copper West Properties Committee Appointment Keith Mobley, Attorney

North Central Team

Satellite Office: Columbia Gorge Community College, 400 East Scenic Dr., Suite 307, The Dalles, OR 97058 Governor’s Coordinator Nate Stice Business Oregon, Regional Development Officer Carolyn Meece Business Oregon, Regional Project Manager Ami Kieffer Environmental Quality, Department of Greg Svelund Housing & Community Services Kim Travis Land Conservation & Development, Department of Scott Edelman Transportation, Department of Brad DeHart Agriculture, Oregon Department of Erick Garman State Lands, Department of Nancy Pustis

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North Central Priorities

• Attainable housing • Infrastructure focus on: o Waste water o Water o Broadband o Public transportation, access, freight • Providing support for target sectors: o High tech: Unmanned Systems o Manufacturing o Value-added agriculture, fermentation science o Healthcare o Renewable energy o Forest/wood products o Arts/Culture/Tourism • Workforce training o Increase skill levels (focus on target sectors) o Develop more internship, including paid, opportunities o Enhance regional participation in workforce investment boards • Regulatory integration/streamlining o Develop Regulatory Road Map o Facilitate industrial site readiness o Work with the Commission to obtain clarity about urban area expansion and promote the implementation of the economic prosperity section of the National Scenic Act

North Central Projects

Attainable Housing

The lack of attainable/workforce housing remains one of the top barriers to economic development in the Gorge. The North Central RST has deployed a two-prong strategy to promote attainable housing in the region: 1) provide capital/incentives for attainable housing development; 2) provide communities help in clearing barriers to housing.

• Regional Solutions Attainable Housing Revolving Loan Fund: The North Central region used its 2013 legislative allocation to seed a $2 million revolving loan fund to provide slightly below market gap financing for attainable housing in Hood River, Wasco, and Sherman counties. The fund became available in late 2015 and has now been used on projects in all three counties. Two projects recently gained approval to use the fund. The first is an 18 unit single family development in Hood River. The developer had planned to build four units at a time, but thanks to the fund, they will build six at a time. The

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second gained approval conditional upon final plan adoption by the City of Hood River and will produce 40 units of attainable housing. If completed, this development will mark the first multi-family, market-rate apartment development to occur in Hood River in over a decade.

“I really value the Regional Solutions Team’s hands-on approach in helping to move our project forward. They have been invaluable in our efforts to build housing so that everyone who works in Hood River can live in Hood River.” VJ Jovanovic, Hood River Developer

• Village within a Village: The legislature approved a subsequent $410,000 in Regional Solutions funding for the development of a pedestrian friendly housing development in Hood River near transit hubs and vital services and within walking distance from downtown. The City of Hood River has been Drawing of Village within a Village working to rezone a city-owned parcel for this development, recently clearing a final hurdle with the Land Use Board of Appeals upholding its rezone decision. Regional Solutions is now working with the city and the Mid-Columbia Housing Authority to finalize the funding contract. Unit construction will begin in 2018 and will produce 65 units in the affordable and attainable range.

Broadband

• Sherman County: Regional Solutions invested $820,000 in a three phase build-out of mission critical (buried fiber) in Sherman County. This build-out connects to a broader tri- county network that serves public safety, community, and consumer needs in Sherman, Gilliam, and Wheeler counties. Phase one and two of this project were completed in 2016. The county is currently completing phase three of this build. With the technical assistance of the Mid-Columbia Economic Development District, Sherman’s four incorporated cities recently completed an RFP to leverage the middle-mile build-out for last mile services to homes and businesses.

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• Wasco County/Maupin Buildout: Regional Solutions secured $410,000 for broadband expansion in South Wasco County to serve residents and businesses in the City of Maupin. The project has leveraged nearly $1 million from the City of Maupin and LS Networks. Skyrocketing construction costs nearly caused a significant change to the scope of the project. Bids on one RFP came in nearly $600,000 greater than initial estimates for the projects. However, Senator Cliff Bentz and Representative Daniel Bonham were able to secure a legislative allocation of $500,000 to finish the full project. The full fiber buildout Workers attaching fiber optic to Maupin Bridge will be completed in July.

“Regional Solutions was responsible for kickstarting the Maupin Fiber Project and getting us on the road to completion. Without that key investment to get us started, it would have been impossible to even get started and to interest LS Networks in making an additional investment in Maupin. Combined with a recent Legislative investment in the project as well as contributions by the City and Wasco County through Q-Life, the project will be completed by mid-July. It all comes back to that original funding generated through Regional Solutions that made this new infrastructure possible.” Maupin Mayor Lynn Ewing

Eagle Creek Fire

The Gorge was hit with a fire in September that led to the evacuation of several communities and a three-week closure of I-84. The North Central RST mobilized to help meet the needs of individuals, communities, and businesses. The team organized an on-the-ground presence in Cascade Locks to help impacted workers gain access to employment benefits and other vital services. Over 200 individuals attended that session. The team also distributed information on resources to businesses impacted in Hood River and Wasco counties.

The RST and local partners offer service to residents and Based on the impact, the Governor stood up a businesses Recovery Council for the counties impacted by

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the fire. Metro and North Central RSTs staffed the Governor’s Eagle Creek Fire Recovery Council, which was co-chaired by Mark Johnson and Senator Chuck Thomsen. The council was established by the Governor to identify economic, environmental and public safety impacts of the Eagle Creek Fire, to mobilize and deploy available state resources to communities, and to identify unmet needs. The Recovery Council met three times through the fall and produced recommendations for Regional Solutions and the Governor, focused on unmet economic recovery and public safety needs.

Based on the needs identified by the Recovery Council and RSTs, the Governor requested $500,000 in lottery funds for “The City of Cascade Locks is the Local Economic Opportunity Fund and $500,000 in very grateful for your role in economic development for Cascade Locks, which was coordinating relief help for our approved by the legislature in the February 2018 session. This town during the Eagle Creek will enable the state to capitalize the program and leverage Fire…To watch the coordination federal dollars to support economic planning and projects between the state and all of the critical to local communities, particularly in rural areas and other agencies involved was for communities whose economies are vulnerable to natural impressive…” Cascade Locks disasters. To help address the Recovery Council’s identified Mayor Tom Cramblett public safety needs, the Governor supported HB 4152, which also passed in the February 2018 session. This bill allocates $150,000 for training and specialized equipment to the Hood River and Multnomah County Sheriff’s Offices for wildfire recovery, mitigation, and preparedness.

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Central Region (Crook, Deschutes, and Jefferson Counties) Central Advisory Committee

Convener Michael Hollern, Brooks Resources Philanthropic Representative Erin Borla, Roundhouse Foundation Business Representative Amy Tykeson, Bend Broadband LOC Representative Mayor Betty Roppe, City of Prineville AOC Representative Commissioner Mae Huston, Jefferson County Committee Appointment Judge Seth Crawford, Crook County Committee Appointment Commissioner Tony DeBone, Deschutes County Committee Appointment Mayor George Endicott, City of Redmond Committee Appointment Mayor Dennis Scott, City of La Pine Committee Appointment Councilor Bruce Abernethy, City of Bend Committee Appointment Lonny Macy, Confederated Tribes of Warm Springs Committee Appointment Becky Johnson, OSU Cascades Committee Appointment Roger Lee, EDCO Committee Appointment Benny Benson, Energyneering Solutions Committee Appointment Melanie Widmer, Madras Sanitary Committee Appointment Karen Friend, Intergovernmental Council Committee Appointment Wally Corwin, JeldWen, Inc. Committee Appointment John Gilbert, Pacific Crest Affordable Housing Committee Appointment Corey Schmid, Seven Peaks Ventures

Central Team Center Address: 1011 SW Emkay Dr., Suite 108, Bend, OR 97702 Governor’s Coordinator Annette Liebe Business Oregon, Regional Development Officer Tom Rowley Business Oregon, Business Finance Officer Tom Schnell Business Oregon, Regional Project Manager Ami Keiffer Business Oregon, Brownfields Specialist Karen Homolac Environmental Quality, Department of Nancy Breuner Housing & Community Services Kim Travis Land Conservation & Development, Department of Scott Edelman & Jon Jinings Transportation, Department of Amy Pfeiffer Employment Department, Oregon Damon Runberg Energy, Department of Rob Del Mar Fish & Wildlife, Department of Michael Harrington Historic Preservation Office, State Ian Johnson State Lands, Department of Nancy Pustis Water Resources Department Kyle Gorman

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Central Priorities

HIGH FOCUS PRIORITIES (adopted August 2017)

1. Grow OSU Cascades 2. Increase workforce housing 3. Ensure the region has land and infrastructure available to retain/attract employers 4. Enhance transit in Central Oregon (COIC led priority) 5. Support the regional creative economy 6. Encourage water conservation and restoration; Improve water availability 7. Integrate workforce training opportunities

For high focus priorities, the committee, coordinator, and team will actively engage in seeking solutions and projects that contribute to successful outcomes for the priority.

SUPPORT PRIORITIES

1. Improve sewer infrastructure 2. Support regional agriculture 3. Strengthen forest restoration and the restoration economy

For support priorities, the committee, coordinator, and team will monitor, engage, and support as needed and requested. The coordinator/team will continue working with communities opportunistically to address these priorities and to serve as a catalyst for their successful accomplishment.

Central Projects

OSU Cascades Co-Laboratory (Co-Lab)

Regional Solutions provided $524,800 (2015-17) in state funding to create a business incubator and accelerator space (Co-Lab) accessible to both OSU-Cascades and the Central Oregon community at large. Key components of the space include a 45-seat classroom with flexible furniture and technology, an 87-seat convertible classroom/event space, open office incubatory space for 16-20 early stage entrepreneurs, a “pitch room,” board room, and associated storage. This renovation also serves as a larger venue for meetings, events, and classes for both internal and external use.

The mission of the Co-Lab is to grow innovative companies while growing the innovative workforce of tomorrow. To meet this mission, the Co-Lab provides space, equipment, and coaching to help innovative companies develop their products and bring them to market. While

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providing these services, the Co-Lab gives student interns projects designed to help companies who use the Co-Lab. For more information, please visit www.osucascades.edu/co-lab.

“[The business and scientific climate of our region] requires a source of local workforce talent, training, and on-going opportunities for collaboration, mentorship, and investment. These additional attributes will be ushered to our region with the funding and implementation of the [Co-Lab].” Adam Carroll, PhD, Chief Science Officer, Amplion

The Co-Lab is a special type of co-working space for startups and the entities that support them. Like other spaces, the Co-Lab offers basic conference room, flex desk, and dedicated desk memberships. Unlike many other spaces, the Co-Lab provides business coaching services and bi-weekly training sessions about prototyping, intellectual property protection, marketing, sales, and funding.

The Co-Lab offers intense, 6 week seminar courses to help entrepreneurs create a startup, launch a new product, solve funding problems, and more. The seminars offered include:

. Iterate, Launch, and Grow: Your Complete Startup Toolkit . Accelerated E-Commerce . The Complete Startup Funding Toolkit . Rapid Prototyping and Design . Financing and Funding Bootcamp . Creating a Marketing and Sales Plan

The Co-Lab provides an opportunity for students to either get credit or get paid to work on interesting projects with the Co-Lab. Projects are designed to be approximately 10 weeks and are matched with a student's capabilities. Starting in 2019, the Co-Lab will offer a startup accelerator program in Bend, Oregon. The program will provide space, mentorship, and funding to selected applicants in exchange for a small amount of equity.

The Regional Solutions investment resulted in a $10,000 private gift that was used to support a pending grant application to the US Economic Development Administration. OSU Cascades provided an in-kind contribution by prioritizing the hiring of a faculty director for the Co-Lab. The Regional Coordinator supports the co-lab by participating in the Launch Board and supporting future funding efforts. Business Oregon administered the Regional Solutions

2017 Regional Solutions Projects Report Page 42 investment. Business Oregon will serve as a conduit for connecting entrepreneurs to the Co-Lab and supporting graduates in their success.

Transformative Transportation System

Regional Solutions provided $738,000 for transit improvements in Central Oregon to improve accessibility to higher education, jobs, medical services, and other needs throughout the region. The committee recommended funding for projects in Redmond, Bend, and La Pine to be administered by the Central Oregon Intergovernmental Council (COIC), which operates the region’s public transportation system, Cascades East Transit (CET).

The Regional Solutions funding has been especially effective in unlocking resources from other sources for projects in Redmond and La Pine. The Redmond Transit Hub Project, which is currently under construction, has elicited funding from Connect Oregon, the City of Redmond, the Oregon Community Foundation, ODOT, and COIC. With the support of this wide array of funding partners, COIC will provide a vastly improved experience for inter-community transit users in Central Oregon. Without Regional Solutions’ contribution, this project could not have been completed. COIC has combined the La Pine Transit Center element with an ongoing ODOT project in La Pine to provide maximum benefit to the project. ODOT has agreed to purchase land and include enhanced sidewalk connections to US-97 as a part of its streetscaping project to ensure convenient and dignified connections to transit in La Pine. Additionally, DLCD has awarded two grants to La Pine to support visioning and code work to support a vibrant downtown. Without the support of Regional Solutions, this project could not have integrated transit into La Pine’s core so comprehensively. Overall, the Regional Solutions investment leveraged about $3.8M in transit investments.

While these projects, along with the Bend improved transit shelters, are providing or will provide jobs during their construction, they will also provide access to employment and higher education throughout their existence. This is vital in Central Oregon, where personal vehicles are currently the primary and only convenient mode of transportation. By improving transit facilities alongside the vast increase in transit funding from House Bill 2017, COIC will be able to provide more user-friendly and dignified transit in Central Oregon. This will allow more residents to develop careers through higher education and access employment independently of car ownership, improving upward mobility in Central Oregon. This is especially true within populations that are unable to drive, including disabled and elderly residents. The funding of a low-floor bus within Bend will improve the mobility of those

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residents within Bend by streamlining boarding of disabled passengers and allowing the system to run on time more frequently.

“The goal is for OSU Cascades to serve as a cornerstone for increasing transit access in Central Oregon.” Mike Hollern, Chairman of the Board, Brooks Resources & Governor’s Convener Central Oregon Regional Solutions Advisory Committee

Transfer of Surplus Property for Affordable Housing

In response to the Regional Solutions Advisory Committee identifying housing as a priority, state agencies reviewed property in their ownership that was zoned residential (ODOT and DSL primarily). With this information, the Regional Solutions Coordinator and ODOT property manager reached out to a number of affordable housing developers, the City of Bend, and the Central Oregon Builders’ Association. As a result of this outreach, in 2017 ODOT sold surplus property to Central Oregon Veterans Outreach (COVO) to provide housing for a formerly homeless Veteran family with minimal rent (approximately ¼ of market) to cover taxes and expenses. This project was completed in partnership with the City of Bend. ODOT sold the property for basically what they paid for it about three years back, which, with increased housing prices in the community is a bargain. The City of Bend provided the funding to COVO for the majority of the purchase (about $270K of total). ODOT is carrying the paper on the remaining $30K on a thirty year amortization schedule with a five year call. This is the second property ODOT has transferred into the hands of affordable housing developers in partnership with the City of Bend. The first property, adjacent to Greenwood Avenue, went to Habitat for Humanity who developed a tri-plex that families moved into in 2017.

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South Central Region (Klamath and Lake Counties)

South Central Advisory Committee

Convener Jane O’Keeffe, O’Keeffe Family Ranch Philanthropic Representative Charles Massie, Klamath County Chamber of Commerce Business Representative Tricia Hill, Gold Dust Farms LOC Representative Mayor Carol Westfall, City of Klamath Falls AOC Representative Commissioner Bradley Winters, Lake County Committee Appointment Commissioner Kelley Minty Morris, Klamath County Committee Appointment Roberta Vanderwall, Town of Lakeview Committee Appointment Chairman Don Gentry, The Klamath Tribes Committee Appointment Betty Riley, South Central OR Economic Development District Committee Appointment Jim Walls, Lake County Resources Initiatives Committee Appointment Peter West, Energy Trust of Oregon

South Central Team

Governor’s Coordinator Annette Liebe Business Oregon, Regional Development Officer Larry Holzgang Environmental Quality, Department of Nancy Breuner Housing & Community Services Kim Travis Land Conservation & Development, Department of Jon Jinings & Scott Edelman Transportation, Department of Jarod Johnson Energy, Department of Rob Del Mar Parks & Recreation Department, Oregon Todd Honeywell State Lands, Department of Nancy Pustis Water Resources Department Kyle Gorman

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South Central Priorities Updated August 2017

Mission: The South Central Regional Solutions Team provides regulatory technical assistance, aligns funding, and shares information to support job retention and attraction. The South Central Regional Solutions Advisory Committee has identified the following priorities to guide the team’s work.

High Focus Priorities 1. Infrastructure a. Natural gas (Lakeview) b. Rural broadband c. Rail 2. Shovel ready industrial land 3. Support entrepreneurship and small businesses 4. Agriculture/food processing/value added agriculture 5. Downtown revitalization 6. Workforce housing – increase stock of available attractive homes, not just affordable housing 7. Workforce training – especially in the trades and connecting high school students with internships 8. Improve forest health and access to federal timber resources

High Focus Priorities: The committee, coordinator, and team will actively engage in seeking solutions and projects that contribute to successful outcomes for the priority.

Support Priorities 1. Transportation (highways, airports, and local roads) 2. Water/waste water systems (Chiloquin, Lakeview) (Prior version had Chiloquin, Malin, Merrill, and Crescent listed; much progress has been or is being made on these) 3. Reduce water quality impediments to economic development (Klamath Falls) 4. Remove air quality impediments to economic development (Lakeview)

Support Priorities: The committee, coordinator, and team will monitor, engage, and support as needed and requested. The coordinator/team will continue working with communities opportunistically to address these priorities and to serve as a catalyst for their successful accomplishment.

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South Central Projects

Lake County Rail Bridge Improvements

Inspection of the Lake County Railroad bridges identified several bridges as being in a priority stage 2 state of disrepair. Until repairs are completed, the county is responsible for inspecting these bridges every week and continued reliable service is in jeopardy. The Regional Solutions Advisory Committee recommended funding for Lake County to repair the highest priority bridges. Most bridges on the line are of timber construction, consequently the timber pilings, walkways, handrails, and deck ties have decayed over time. Timely repair is needed to ensure continued rail service to two of Lakeview's largest private employers -- Collins Companies Sawmill (75 jobs) and Cornerstone (25 jobs) -- as well as Lake Railway (6 jobs). In addition to those primary jobs, secondary jobs bringing materials to these manufacturers also benefit. This project was awarded $165,000 in Regional Solutions (2015-17) funding that was matched with $82,700 in county funds.

“These improvements are critical to sustaining our current employers by addressing immediate safety needs.” Brad Winters, Lake County Commissioner

Crescent Waste Water Treatment System

The Crescent Sanitary District (CSD) has been working for several years to resolve public health concerns related to their failing septic systems. The RST (DEQ, OBDD/IFA, ODF, and DLCD) has been meeting consistently with the CSD since January 2015 to make recommendations on their facilities planning, advise on the best strategy for locating their facility on ODF-owned property (including a process to transfer the land and subsequent zoning applications), and on project financing. With technical and funding assistance from DEQ and Business Oregon, the CSD has made remarkable progress. The district now has an approved facilities plan. An accompanying environmental report has been completed and reviewed by state agencies.

Extensive work has been completed by the CSD Board to fulfill its own legal requirements and pursue a path forward recommended by the RST. The district has secured an option to purchase 200 acres of the Gilchrist State Forest from the Department of Forestry. The district was awarded $5 million in funding during the 2017 Legislative Session. These funds are being administered by Business Oregon. Business Oregon and DEQ have been working closely on the

2017 Regional Solutions Projects Report Page 47 funding plan. Klamath County approved a goal exception to support a land use compatibility statement. The goal exception is currently under appeal.

“The professionalism and collaboration on this project has been outstanding. The team has worked diligently together to move the project along in a timely and methodical manner.” Chuck Lawrence, Crescent Sanitary District, Project Manager

Lake and Klamath Counties - Reduce Economic Development Barriers by Improving Air Quality

Through this project, uncertified wood stoves were replaced (and energy efficiency in homes in Lake and Klamath counties increased) in order to reduce barriers to economic development and public health exposures from particulate pollution. Because of the region’s status as non- attainment for air quality standards, there are barriers for businesses who require air quality permits. One of the primary sources for the poor air quality are uncertified wood stoves. The South Central Regional Solutions Advisory Committee acknowledged the need for assistance to the region in order to advance business and workforce and improve housing stock, and prioritized the project for $1.5 million in Regional Solutions priority funding.

DEQ, ODOE, and OHCS assisted the project partners to establish a woodstove replacement and energy efficiency/weatherization program through the South Central Oregon Economic Development District (SCOEDD) and Klamath Lake Community Assistance Service. Additional partners included the Oregon Health Authority, Lake County, Klamath County, City of Klamath Falls, Town of Lakeview, Lake County Resources Initiative, and private businesses.

Both Klamath Falls and Lakeview did really well with this change-out by changing uncertified woodstoves for energy efficient systems. Lakeview change-outs included 46 heat pumps, two electric furnaces, 15 propane units, 16 pellet units, and 40 hybrid wood burning units. There were 119 change-outs in Lakeview resulting in 73 fewer wood burning units in Lakeview. The Klamath Falls change-out total was 128, which included 32 gas furnaces, 63 gas fireplace inserts, 6 gas stoves, 10 heat pumps, 11 pellet inserts, and 6 pellet stoves. This is 111 fewer wood burning units in Klamath Falls.

Through this program, we were able to utilize over $100,000 in discounts and rebates:

Residential Energy Tax Credit $ 49,149.76 Energy Trust of Oregon 39,826.50 Avista Utilities 6,718.00 Gensco 700.00 Vendor Discounts 17,841.94 Total Discounts $114,236.20

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Most of the vendor discounts came from Coastal Farms of Klamath Falls and Robinson Heating and Cooling in Lakeview. The Avista rebates were mainly for programmable thermostats when gas products were installed. ETO rebates include heat pump installation in homes that replaced electrical heat with the heat pump system as well as some rebates related to weatherization projects.

Through these change-outs over 10 tons of emission credits were created in Lakeview and Klamath Falls. These credits are available for new or expanding businesses. Further, air quality monitoring in Lakeview and Klamath Falls shows reduced levels of particulate. Both areas now meet air quality standards.

North Ridge Estates Superfund Match through Interagency Land Exchange, Klamath Falls

North Ridge Estates is a subdivision in Klamath County, developed with approximately 22 homes and a small apartment complex. The site was developed with a number of uses in the past, including the Oregon State Hospital and the former Oregon Technology Institute (now Oregon Institute of Technology). Like many buildings constructed prior to 1970, the buildings and associated underground steam heating pipe were asbestos-laden, and when the property was developed as a subdivision the asbestos abatement was handled improperly. On September 16, 2011 the site was listed as a national priority site for cleanup under Superfund. As part of a Superfund cleanup action, the state is required to pay a 10% match of the actual cleanup costs. The EPA has estimated the total cleanup effort at North Ridge Estates to be approximately $38 - $40 million.

The RST executed a land exchange between ODOT and DSL that will provide approximately 274,000 cubic yards of clean fill material as an in-kind match for the remediation. Because of requirements governing disposal and use of DSL-owned property, the agency needed to transfer the site to other ownership. ODOT was interested in obtaining jurisdiction of the site. The kick-off remediation began in September 2016 and is expected to be completed fall 2018. During the 2017-19 biennium the state in-kind match is estimated to result in $690,000 in savings. The project cleans up a public health issue, puts properties back on the tax rolls for the county, and saves state funds.

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Red Rock Biofuels

Red Rock Biofuels (RRB) is constructing a $250 million biofuels refinery in Lakeview, funded with a $70 million federal Department of Defense grant and private investors. Once operational, the facility will employ 31 full time, with 55-60 indirect jobs created in the nearby forest; 250 jobs are estimated for construction. RRB intends to convert 140,000 gallons per year of renewable jet fuel, and diesel and naptha fuels. The RST is coordinating RRB's state permits, including DEQ Air Quality Permits, DSL wetland permits, and a UGB Exchange/Amendment with guidance from DLCD. The RST has been convening monthly calls with the company, town, county, and state agencies to ensure good coordination on the various state approvals. The final environmental assessment was published in December 2016. The town and county approved the Enterprise Zone Agreement December 2015. The RST continues to work with the town, the county, and Red Rock to provide assistance on state approvals and incentives (air quality and wetland permitting, transportation/jobs incentives). Business Oregon worked closely with the company and the Governor’s Office to secure allocations of tax exempt bonds late in 2017 and early 2018 ($245 Million in total). These bonds were sold to investors; the obligation to repay the bonds is solely on the company and not the State of Oregon.

“The Regional Solutions Team has been vital in coordinating the many state departments and agencies. These teams provide a very valuable role in the development of large projects.” Jeff Manternach, CFO, Red Rock Biofuels

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Greater Eastern Region (Gilliam, Grant, Harney, Malheur, Morrow, Umatilla, and Wheeler Counties)

Greater Eastern Advisory Committee

Convener Cam Preus, Blue Mountain Community College Philanthropic Representative Timothy Mabry, Oregon Community Foundation Business Representative Donald Rice, GreenWood Resources LOC Representative Mayor Mike McLaughlin, City of Vale AOC Representative Judge Steven Shaffer, Gilliam County Committee Appointment Commissioner Boyd Britton, Grant County Committee Appointment Commissioner Bill Elfering, Umatilla County Committee Appointment Commissioner Melissa Lindsay, Morrow County Committee Appointment Judge Pete Runnels, Harney County Committee Appointment Judge Dan Joyce, Malheur County Committee Appointment Joe DeLaRosa, Chairman, Burns Paiute Tribe Committee Appointment Bill Tovey, Confederated Tribes of the Umatilla Indian Reservation Committee Appointment Bob Levy, Windy River Farms Committee Appointment Fred Flippence, Harney Electric Committee Appointment Rick Minster, Retired Committee Appointment Peter Mitchell, Port of Arlington

Greater Eastern Team

Governor’s Coordinator Courtney Warner Crowell Business Oregon, Regional Development Officer Melisa Drugge Business Oregon, Regional Development Officer Scott Fairley Environmental Quality, Department of Kelly Hill Housing & Community Services Kim Travis Land Conservation & Development, Department of Phil Stenbeck Transportation, Department of Ken Patterson

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Greater Eastern Priorities Adopted October 11, 2017

The following priorities are all related and implementation of each is required to advance the regional economy.

Workforce housing Increase housing availability across types and values and address housing infrastructure needs.

Workforce availability Increase regional workforce availability to meet current and future industry needs.

Support for current and emerging businesses Support for traded sector, small business, and entrepreneurial job growth and retention.

Natural resources utilization Support forestry, agriculture, mining, and recreation sectors.

Water management and development Secure agricultural, industrial, and municipal water supply.

Competitive Communities Access to community amenities (bike/ped facilities, broadband, and other amenities) to attract growth, development, and workforce.

Infrastructure for marketable industrial lands Increase availability of sewer, water, roads, and other investments to be competitive in attracting business development opportunities.

Greater Eastern Projects

Malheur County Reload Facility “Millions upon millions of dollars In the transportation package (House Bill 2017) that have been and will be invested in passed the Legislature in 2017, the Malheur County private Onion Processing facilities Reload Facility was one of the projects called out in the here in the Treasure Valley which, Connect Oregon program. This $26 million project is a with the Reload Facility, will create key project for the region and the agricultural hundreds of jobs and establish communities of Eastern Oregon because it provides a Ontario/Nyssa as the center of the competitive advantage for this region to ship products, Nation’s Onion Industry.” including the $1 billion onion industry, to the East Representative Cliff Bentz, House coast. Since the transportation package was passed, District 60

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Regional Solutions has continued to stay engaged and kept state agencies who will be involved in the future up to speed. Now that the project has gone through the first round of approval from ODOT, Regional Solutions will participate in monthly meetings with the project leaders and stakeholders to ensure that the project continues to move along smoothly and in a timely manner.

John Day Innovation Gateway

The City of John Day has launched a strategy for growth aimed at reversing the pattern of steady population decline since the 1980’s. As part of this strategy they have also launched the John Day Innovation Gateway that will create an 80-acre innovation center in the heart of the city. The former mill property known as Oregon Pine will be reclaimed and revitalized to include community facilities and retail and commercial opportunities. Regional Solutions has helped the City of John Day get this strategy launched including key coordination efforts. In just over a year, several key state investments have been awarded to John Day:

a. $1.8 million from the legislature for the development of a gigabit fiber optic data network for the community as well as to support advanced research. b. $200,000 from ODOT and DLCD for the Transportation and Growth Management grant program to create an area plan for the John Day Innovation Gateway. c. $37,800 from the DLCD Technical Assistance grant program to help kick start an innovation workforce housing proposal to create a housing development district to incentivize new home construction. d. $20,000 grant from Business Oregon for facility planning and a $350,000 Special Public Works Fund loan for the greenhouse project (pending).

Additionally, Regional Solutions has helped with some key coordination efforts including a First Stop meeting with Business Oregon and the Department of Environmental Quality to discuss the city’s ambitious plan to upgrade their wastewater system to Class A quality and then re-use the water for community efforts.

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The John Day River will be opened up to the community via trails, parks, commercial and retail opportunities and a three mile greenway

Gilliam County Housing Project

Regional Solutions worked closely with Gilliam County when they wanted to address housing shortages in their communities. Regional Solutions brought in Oregon Solutions to facilitate the work with local stakeholders and the county. In the fall of 2017, Oregon Solutions finished their facilitation work and identified a series of solutions. In January 2018, the county and Oregon Solutions project leaders signed a declaration of cooperation to create a public-private partnership to oversee an incentive fund for programs for attainable housing. Gilliam County and the Pioneer Community Development Corporation (PCDC) have agreed to create a partnership to allocate $2 million into an incentive fund over the next three years to stimulate the following four types of activities:

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1. New single family construction 2. New multi-family construction 3. Renovate and/or repair existing homes to be offered for resale or as new rental inventory (Builders, developers and contractors would buy an existing home and renovate it and then rent it out. Tenants could choose to “rent to own.” PCDC could be in first position or second position on the loan.) 4. Demolishing dilapidated homes and trailers

This was a tremendous collaboration between Gilliam County, local stakeholders, and Oregon Solutions to help local communities identify how to move forward with a key issue in the community. Regional Solutions was happy to convene this effort. We look forward to continuing to watch the success in the communities and to help if there are concerns or problems that pop up along the way.

Eastern Oregon Border Economic Development Board

During the 2017 Legislative Session, Speaker Kotek and Rep. Cliff Bentz sponsored House Bill 2012 which established the Eastern Oregon Border region (20 mile area that encompasses the Ontario, Vale, and Nyssa communities) and the Eastern Oregon Border Economic Development Board. This board has been established by the Governor with support from the RST and is tasked with making $5 million in economic and workforce development as well as education investments. The board is also tasked with identifying state rules and regulations that put the border region at a competitive disadvantage to Idaho and making recommendations on how rules and regulations can be changed to remove the competitive disadvantage. A RST member from Business Oregon is providing staff support to this board and the entire team will be providing technical assistance and coordinating with state agencies who are involved in the efforts of the board. This is a unique opportunity to make some significant investments and positive changes for the region.

Lamb Weston Expansion in Hermiston

Regional Solutions was a key participant in the efforts surrounding the Lamb Weston expansion at their operations in Hermiston, OR. Business Oregon helped negotiate the $500,000 Strategic Reserve Fund (SRF) request and DEQ helped with streamlining the efforts around air and water permitting. This is a significant economic opportunity for the region and will result in an additional 140 jobs with production line jobs at an average wage of $40,179, compared to Umatilla County’s average wage of $34,442. The

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SRF funding will help offset a small portion of the company’s costs for the on-site wastewater treatment and storage system. As this project continues to move forward, Regional Solutions will stay involved in working with the company if additional state agencies need to assist with the expansion efforts.

Grant County Biomass Facility

The Grant County Biomass Facility project is complete. They received $811,000 from the Regional Infrastructure Fund (RIF) to help Iron Triangle Logging better utilize low value timber product off of the . Today, Iron Triangle operates biomass sort yard facilities in Seneca and John Day, Oregon. The RIF money allowed the company to purchase land and make improvements on the land in order provide more efficiencies on low value timber products.

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Northeast Region (Baker, Union, and Wallowa Counties)

Northeast Advisory Committee

Convener Tim Seydel, Eastern Oregon University Philanthropic Representative Aletha Bonebrake Business Representative Kathy Gover-Shaw, Behlen Mfg. Co. LOC Representative Mayor Dennis Sands, City of Joseph AOC Representative Commissioner Susan Roberts, Wallowa County Committee Appointment Curtis Martin, VP Ranch Committee Appointment Nils Christoffersen, Wallowa Resources

Northeast Team

Center Address: Eastern Oregon University, 233 Badgley Hall, One University Blvd., La Grande, OR 97850

Governor’s Coordinator Courtney Warner Crowell Business Oregon, Regional Development Officer Brian McDowell Environmental Quality, Department of Kelly Hill Housing & Community Services Kim Travis Land Conservation & Development, Department of Phil Stenbeck Transportation, Department of Ken Patterson

Northeast Priorities Adopted October 17, 2017

The following priorities are all related and implementation of each is required to advance the regional economy.

Support for current and emerging businesses Support for traded sector, small business, and entrepreneurial job growth and retention.

Natural resources utilization Support forestry, agriculture, mining, and recreation sectors.

Water management and development Secure agricultural, industrial, and municipal water supply.

Workforce availability Increase regional workforce availability to meet current and future industry needs.

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Workforce housing Increase housing availability across types and values.

Competitive Communities Access to community amenities (bike/ped facilities, broadband and other amenities) to attract growth, development, and workforce.

Infrastructure for marketable industrial lands Increase availability of sewer, water, roads, and other investments to be competitive in attracting business development opportunities.

Northeast Projects

Baum Industrial Park (Union County)

Continued development of the Baum Industrial Park had been a priority of Regional Solutions for years and after the 2015 Legislative Session, the Regional Solutions Advisory Committee selected the Baum Industrial Park project for funding. The $1.1 million investment was used to purchase an additional 60 acres of industrial land and add necessary sewer, water, and electrical hook-ups. Now Union County has over 60 acres of available industrial land with infrastructure included for prospective businesses. The county is marketing the land and working with interested companies to move to the new industrial park. The county is also working to get high speed broadband to the industrial park and to pave the entire industrial park which includes many established businesses who would like to see a paved road. Regional Solutions is working with Union County on these efforts.

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Rails with Trails (Wallowa County)

Regional Solutions continues to work with the stakeholders who are supporting a 63 mile Rails with Trails project from Elgin to Joseph. In 2013, a group of citizens approached the Wallowa Union Railroad Association (WURA) Board of Directors to encourage consideration of building a multi-use recreational trail on the railroad’s right of way. The WURA Board of Directors and a citizen group approached the Oregon Parks and Recreation Commission in April 2013 to request the support of the agency in determining the feasibility of an Elgin to Joseph 63 mile rail-with-trail project. Since then, the project has run into land use concerns and has hit a stall. There is still significant interest within the community for such a recreational trail, so Regional Solutions, including DLCD, will help Union and Wallowa counties work through the concerns.

Pine Creek Flood Alleviation (Halfway, OR)

Intermittent flooding of Pine Creek had been impacting the City of Halfway and was a risk to the city’s wastewater storage lagoon. ODOT performed an analysis to determine possible corrective work to help alleviate flooding issues. This analysis concluded that changes needed to be made to Highway 86. ODOT then worked with DEQ to address planned wastewater treatment plant upgrades to ensure that the two projects would work well together and would both alleviate the flooding issues. In October 2017, the construction of the new wastewater treatment plant and the changes to Highway 86 were completed leaving the community with a solution to the challenges of Pine Creek flooding and the impacts to their wastewater system.

Northeast Oregon Industrial Park Improvements

Regional Solutions is now working with both Baker City and the City of Joseph on improvements to their industrial parks to make them more attractive to potential businesses and to provide more infrastructure to the land. For Baker City, we are working to help them add electrical power and broadband to the industrial park both for current businesses (broadband) and future businesses. Just recently, Baker City was successful in receiving a grant from Business Oregon for $137,000 to add broadband service to this industrial park. This grant funding from Business Oregon came from a $500,000 Strategic Reserve Fund investment approved by the Governor. In the City of Joseph we are working with them to extend sewer and water infrastructure to an industrial park that currently has multiple businesses that are interested in locating at the industrial park.

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Richland-Newbridge Water System Update (Baker County)

The City of Richland is currently under non-compliance for drinking water standards under the Oregon Health Authority and is assessing solutions for this non-compliance. As part of their efforts to design a new water system for the community, the City of Richland participated in a Business Oregon funded feasibility study to determine if it made sense to add the unincorporated community of Newbridge into the City of Richland’s system. This feasibility study has been completed and now Regional Solutions is waiting to see how the City of Richland would like to move forward with efforts to update their drinking water system.

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