January 2016
Basin Business
KLAMATH BASIN
Thursday, Jan. 21, 2016, Herald and News
Business
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Housing starts a sign economy is improving
— Page 7
Coming Ful l C ir cl e Chamber Awards Gala up next — Page 3
Message from new board president
— Page 5
Marijuana in the workplace — Page 7
A publication of the Herald & News Chamber: www.klamath.org
Downtown counseling center treats the whole body and mind — Page 2
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Thursday, Jan. 21, 2016, Herald and News
Basin Business
Treating the whole person
Full Circle Healing focuses on the individual By GERRY O’BRIEN H&N Editor
Mental health counseling is not a one-size-fits-all proposition. Many patients believe that their problem is more than a text book diagnosis and demands more attention than a counseling session and prescribed drugs. Full Circle Healing believes there are numerous ways to get at the core problem from which a client may be suffering. Based in the historic downtown Oregon Bank building at 901 Main St., Full Circle has been in Klamath Falls for more than six years. Fabrice Dolce, the owner, director, and counselor at Full Circle, sees a constant need for giving patients options. “We try to connect with people who cannot connect with the more traditional systems,” said Dolce, 52. “I, myself, was a homeless man 10 years ago, and lived that way for a couple of years. I had reached the bottom rung of society. “We’re here to tell people, before you cash in on hope, let’s try a way that offers you a way to seek out things that will work for you, not the ones that don’t resonate with you.” To that end, Full Circle provides counseling for addictions and mental health, but takes it a step further; offering: Comprehensive medical exams; naturopathic nutritional treatments; neurofeedback; chiropractic therapy; medical massage therapy; acupuncture; yoga; meditation; sound healing and Tai Chi among other practices. “We offer these practices because what works for one person does not always work for another. You have to find the right place, methodology that is best suited for that person,” said Dolce. The company has filled the lobby of the bank building and redesigned it to have a welcoming, relaxing atmosphere, complete with soothing fountains and background music. Offices are on the main and fourth floors. One practice that sets it apart
from others is its music therapy room. Dolce has built a complete recording studio. Several guitars hang from the walls; there’s drum sets, microphones and a sound booth. “Teenagers have a hard time expressing themselves,” said Dolce, a closet songwriter and musician himself. “I have them write songs here. Nine times out of ten, they write about what’s bothering them. It helps bring problems to the surface.” The program is called “Adolescent solutions without blame.” And like all of the programs offered, it is based in building trust, quieting the mind, he said. Many of the rooms have oriental artwork on the walls; emphasizing meditation as a way to focus on getting back on track. Fees for the services are set on a sliding scale, help for those who may be unable to pay much, but need the help the most. “Our focus is not about the money,” said Dolce. “We are here to give it away, helping people because that’s what we need to do. We let people know there’s hope and walk with them, know where the potholes are, so they can get from point A to point D and get their lives back.” The group operates as independent contractors under one roof.
Courtesy photos
Fabrice Dolce, right, is the owner director, counselor at Full Circle Healing, 901 Main St., in Klamath Falls. At top is a medical doctor’s examining room; top right, the redecorated lobby and, above, a massage therapy room. The center is open Monday-Saturday, 9 a.m. to 5 p.m. or call 541-8846004.
There are some 14 offices in the building and the firm handles about 140 clients. There’s even a woman’s clothing consignment store with many items tied back to meditation. Odd as it may sound, it actually complements the therapy and has been a successful addition. “We are providing a central hub, a gathering place people who come and receive a variety of wellness tools; be it acupuncture or medical needs or substance abuse counseling.” Dolce came to Klamath from
the Bay Area where he has started transitional living homes for people in need in Sonora, Calif. He did the same here and eventually opened Full Circle. “It’s not a new idea, and it’s popular in larger cities such as Portland. But there’s a need for it, no matter the demographics or economics,” he said.
Basin Business
Thursday, Jan. 21, 2016, Herald and News
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Tickets on sale now
Klamath Chamber Awards Gala Feb. 6 Tickets are on sale now for the Klamath County Chamber of Commerce 95th Annual Awards Gala sponsored by Washington Federal. This Hollywood-style awards show is scheduled for Feb. 6 at the Ross Ragland Theater. The Chamber’s annual awards represent the highest honor the Chamber can bestow upon worthy individuals and businesses. Executive Director Charles Massie said, “The awards are a way for the community and the Chamber to recognize the businesses and individuals in the community that make a difference and make Klamath a great place to work, play, and live.” This year, the Chamber will hand out awards for: n Big IDEA Innovation Award — Awarded to an organization in any industry that employs new ideas or approaches to doing business. Innovation could fill an unmet need, create attention, be different or better than existing products, exceed market expectations, achieve financial success, or improve business systems. n Environmental Leadership Award — Awarded to any organization in any industry that demonstrates an alignment with clean energy or clean technology practices. n Commitment to Community — Awarded to any organization in any industry that demonstrates a successful approach to corporate social responsibility and can show a positive impact on the community. n Best Place to Work Award (business with 15 or less employees, business with 16 or more employees) — Presented to an organization that, through its innovation and dedication, provides employees with an outstanding positive, healthy and productive workplace. n Spirit of Entrepreneurism — Awarded to an individual who exhibits an entrepreneurial spirit, originality, personal integrity, and influence. Awarded to an individual who has taken risks in business (could be started a new venture, expanded into a new area, taken on a difficult project, demonstrates “outside the box” thinking, or demonstrate a vision for the future). n Lifetime Achievement — Awarded to an individual who has demonstrated exceptional business achievement and outstanding commitment to Klamath’s business community over their lifetime. Must be a business leader in
H&N file photo
The annual Klamath County Chamber Gala and Awards banquet will be the Ross Ragland Theater.
Klamath County and be a member of the Chamber. Must have participated in the Klamath business community for a minimum of 20 years. n The Pathfinder Award — Awarded to presidents, principals or chief executive officers for devoting time and energy to strengthen and transform the organization that they lead. This includes specific situations or initiatives where the recipient’s insight, discernment and ability to lead and inspire have guided their organization to a new level of growth, achievement and recognition. This individual should actively support advancement of their organization, create a vision and inspire others, establish a positive image for his or her business while leading it to higher levels of success, encourage innovation and risk-taking among employees, and give back to the community. Through the awards, the Chamber seeks to celebrate the dedication and commitment of the business talent and the entrepreneurial spirit that exists within our community. To purchase tickets, visit www.klamath.org and follow the links on the front page or call the Chamber at 541-884-5193.
Contact the Chamber Klamath County Chamber of Commerce
205 Riverside Drive, Suite A Klamath Falls, OR 97603 Office: 541-884-5193 Fax: 541-884-5195 Charles “Chip” Massie Executive Director cmassie@klamath.org
Heather Tramp: Marketing and Program Coordinator Email: heathert@klamath.org www.klamath.org www.facebook.com/Klamath Chamber twitter.com/AccessKlamath
Mark Fay, M.D. Scott Stevens, M.D. Physician/ Surgeon of the Eye Physician/ Surgeon of the Eye
Edwin Tuhy, O.D. Optometrist
Jennifer Sparks, O.D. Optometrist
New Patients Welcome
2640 Biehn St. • 541.884.3148 • www.klamatheyecenter.com
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Thursday, Jan. 21, 2016, Herald and News
Basin Business
From the director...
Reading the tea leaves for a propserous 2016 Over the centuries there has been much effort and energy put in to predicting the future. We have used crystal balls, tea leaves, bones, Ouija boards and Tarot cards. None of these have ever been proven to be 100 percent reliable, and still we try to peer ahead and interpret the potential futures we face. So, as 2016 begins, I’ll attempt to prognosticate with the best of the seers across history. What I know: 1. This year’s Chamber Awards Gala (Feb. 6) will be a huge celebration of local businesses and community leaders with a focus on how we can keep moving our economy and community forward together. 2. Chamber members will have access to more online marketing opportunities than ever before. 3. The Chamber will continue working with all partners to address the important issues facing our community — business expansion, start-up support, business recruitment, workforce development, tourism attraction, career opportunities for incoming workers, and targeted investment in
infrastructure improvement. 4. In 2016 the Chamber will add to an already robust and effective advocacy program that promotes legislative actions supporting business and economic development across rural Oregon. 5. More low or no cost educational business success programs, the Chamber’s and our Massie partners, will be added to the calendar to help businesses grow and prosper. 6. 2016’s Rural Business & Innovation Summit will grow and attract significant regional participation. What I think: 1. Our community will pull itself out of the recent economic recession by working together and taking full advantage of the wealth of initiatives placed on the table in the past couple years. Initiatives that include: Klamath IDEA, Klamath Promise, Klamath Works, a reinvigorated econom-
ic development organization, career training at all levels of education, downtown and community revitalization, connected trails development, and the budding entrepreneurial support in Klamath. 2. Rural Oregon, and rural America, will find its voice and begin a frank conversation, at all levels of community and government, about the growing importance of rural businesses and lifestyles. 3. We will find ways for Klamath County to benefit from the economic growth taking place in the urban centers around us. This will be accomplished by repositioning ourselves as leaders in strong and successful development initiatives that honor rural traditions and allow us to support the activities driving growth in urban centers with a network of service providers to those activities, and value added products based on locally available natural resources. Will we be challenged in 2016? Absolutely! But, I believe we will keep our eye on the prize of real economic growth and create a unified vision of Klamath’s future that makes our community attractive to younger residents and potential pioneers of new discoveries.
Workshop explores marijuana in the workplace What: Managing the Impact — Employer Considerations to Dealing with Marijuana in the Workplace When: Wednesday Jan. 27, 7:30 a.m. to 10 a.m. Where: Washington Federal Conference Center, 5215 S. 6th St. -------In 2015, the use of recreational marijuana became authorized in Oregon. As a result, employers face new challenges and conflicting pressures on how to deal with marijuana use and its effect on the workplace. How an employer should respond to the challenges of changing marijuana laws will depend on the workplace culture, safety concerns, customer base, and other factors. Join Sean Ray, an employment law attorney with Barran Liebman LLP, as he presents a seminar on what is legally required, what is legally permissible, and what drug testing is able to show about actual
marijuana impairment. Pre-registration is required: $10 for Chamber members; $30 NonChamber members. Breakfast included. Register now by calling the chamber at 541-884-5193 or email heathert@klamath.org About the Speaker: Sean Ray is an attorney at Barran Liebman LLP, representing management in employment matters. He defends employers against discrimination complaints, sexual harassment lawsuits, and retaliation claims, wage and hour claims, and represents employers in state and district court, as well as before Oregon’s Bureau of Labor and Industries and the Washington State Human Rights Commission. In addition to litigation, Ray also works with employers to ensure compliance with changes in the law, including drafting and revising their employee handbooks and providing
customized trainings to address harassment and discrimination in the workplace. Ray regularly writes about employment law cases and decisions, and his columns can be found in such publications as the Portland Business Journal, the Daily Journal of Commerce, and Oregon Business Magazine. He often provides on-site employment law training to help
businesses prevent workplace grievances. Ray is a past board member of the Multnomah Bar Association’s Young Lawyers Section where he voted as the Multnomah Bar Association’s Young Lawyers Section Delegate to the American Bar Association. Additionally, he served as the 2014 Co-Chair of the American Bar Association Young Lawyer Division’s Bullyproof Program which received praise for its implementation in the Portland Public School District. In 2011, while serving on the Membership Committee, Ray was awarded the Multnomah Bar Association Young Lawyers Section’s Award of Merit for his work with the bar and the community. Ray also serves on the Campaign for Equal Justice Associates Committee, and is a past member of the CourtCare Advisory Committee. He received his B.S. in Mechanical Engineering from the University of Portland, and earned his J.D. at Oregon.
Basin Business
Thursday, Jan. 21, 2016, Herald and News
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A New Year message from the new Chamber president By TODD ANDRES Chamber President
As the 2015 year came to a close, I noticed an increase in comments on the social networks with friends expressing how their 2015 turned out. A few expressed a good year with the hope of a better 2016. Many more posted how they were happy 2015 was over as the year brought them business challenges or personal grief. Well, good feelings or bad, the bottom line is: They were right! It is a bit frustrating that many of us look to the end of a year to determine if we were successful or not. We think a “new year” is all it will take for us to improve our current condition. It’s almost like playing the lottery. A calendar is a measurement of time, not a measurement of success. A new year will not change one’s fortune. Instead it is what we chose to do with the time given equally to each of us that will determine our faith. I would like to quote my favorite coach, the great John Wooden: “There is nothing you can do
about yesterday, for it is gone. There is nothing you can do about tomorrow, for it is yet to come. All you can do is focus on today, and what you do today will impact your tomorrow.” This simple phrase has deep principals that successful individuals understand. Andres If you had a poor 2015, it is over. There is nothing anyone can do to change the past. We can learn from the past; but to focus on it is counterproductive. If you want to have a better 2016, focus on the day in front of you. Use the time to focus on improving yourself and/or business. If you are concerned about the future of your business, it is more productive to work on adjustments today instead of worrying about tomorrow. Evaluate your poor habits, we all have some, and develop a positive habit that improves the situation and moves you closer to the desired outcome.
Your Klamath County Chamber of Commerce will have many learning opportunities in 2016 to help you with both business and personal growth. Take full advantage of these opportunities. As you begin to build on your positive days, these will create positive weeks, months, and so on…. We live in a great community and should be proud to call it home. We have so many worthy projects working to advance our community. The Blue Zone health project, The Klamath Promise, and the new KCEDA economic initiatives are just a few examples of the positive improvements we have going for us. These missions will not happen overnight. They, too, will need to focus on the day in front of them as they work towards a better Klamath. Our community’s success, like our own, lies in front of us. Each day provides us the opportunity to grow and prosper. If you accept the opportunity success is within your control. I wish all of you a successful 2016 and a happy New Day.
Chamber’s focus shifts to advocacy, education By DAN KEPPEN Outgoing Chamber president
It took 13 years serving on the Klamath County Chamber of Commerce board of directors before I felt like I had the time to properly dedicate to the job as president of the board, but the wait was definitely worth it. The past year saw the Chamber finishing the transition from an event-driven organization (e.g. handing over organization of the Fourth of July and Snowflake parades to other, capable local organizations) to one that advocates and educates. The Chamber’s Rural Business Innovation Summit and the Leadercast forum are both examples of the new types of events and training opportunities the Chamber is promoting. Last fall’s business summit, in particular, was praised by both local and statewide participants for its professionalism and the improved impressions it generated in the region regarding the Chamber and our business community. Overall, I have been encouraged by the many programs and initia-
tives that the Chamber participates in to advance our economic stability. The continuing evolution of the educational opportunities that the Chamber sponsors for our business comKeppen munity has been a high point, as well as the key role the Chamber has played in the Klamath IDEA and similar initiatives. Reinvigorating the Government Affairs Committee and Military Affairs Committee were two important developments that hold special meaning to me. It’s been a true pleasure working with our executive director, Chip Massie, who has been instrumental in guiding the Chamber towards events that help build the businesses and are cost-effective. I’ve had the pleasure to serve with Chip on the board, and supported his willingness to take the helm as executive director, which was not an easy task. That move alone demonstrated to me how much he cares about our organization and our community.
“I believe a foundation is being built that will begin to inspire more of our citizens to invest in the future of this economy.” Dan Keppen Chip’s executive experience with the Chamber over the past eight years that have elapsed has been invaluable during some very difficult economic times. It’s easy sometimes, especially near the end of an economic recession, to overlook the positive things that are going on all around us. We clearly have much to be proud of in this community, and I really believe in the past year encouraging developments have sprung up that give me even more hope. Many local organizations are getting involved to tackle key challenges. The Klamath IDEA, Klamath Works, the Downtown Association and their efforts to redevelop Main Street, the expanding and positive influence of Blue Zones, a more engaged business community and a revitalized KCEDA, expansion of OIT and OHSU, and the KCC workforce development program are all
coming together at the same time, and the time couldn’t be better. All of us here at the Chamber want to continue to support these diverse efforts, because we know they will revive the deep sense of honor and pride that Klamath Falls’ citizens should feel about their membership in this community. I believe a foundation is being built that will begin to inspire more of our citizens to invest in the future of this economy. Ultimately, these results will compel the next generations to remain here, building their own futures right along with the community’s. It’s been an honor and a pleasure to be associated with this fine organization. I know I will look back at this time in the future and feel real pride at being involved with the Chamber of Commerce at this pivotal time in Klamath County’s economic history.
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Thursday, Jan. 21, 2016, Herald and News
Basin Business
Oregonians face 10th highest state-local tax burden 10.3 percent of income goes to state, local taxes From the Tax Foundation WASHINGTON, D.C. — About 10 percent of all income in Oregon went toward state and local taxes (in FY 2012), according to the annual StateLocal Tax Burden Rankings released by the nonpartisan Tax Foundation. The report highlights the state-local tax burden on taxpayers in each of the 50 states, details how much residents pay to their state and other states, and illustrates tax burden trends over time and within each state. Here is a breakdown of Oregon’s state-local tax burden: n State-Local Tax Burden rank: 10th n Percent of income in Oregon that goes to state and local taxes: 10.3 percent; n Amount of taxes paid to Oregon per capita: $3,063;
n Amount of taxes paid to other states per capita: $1,032; It’s important to remember that a significant amount of taxation occurs across state lines, and that this shifting is not uniform, the release said. For instance, one might pay sales taxes at their local corner store, but also pay sales taxes when on vacation in another state. This shifting should not be ignored when attempting to understand the burden faced by taxpayers within a state, the release said. “There’s an ongoing debate over how much is enough when it comes to taxes, but it isn’t always informed by accurate data,” said Tax Foundation economist Nicole Kaeding. “Our study gives taxpayers a comprehensive look at where tax burdens are felt across the states, so that they can have an informed discussion on the size and reach of state and local taxes.” The study’s key findings include: n During the 2012 fiscal year, state-local tax burdens as a share of state incomes decreased on average across the U.S. Average income increased
Unempolyment rate declines Oregon’s jobless rate drops to 5.4 percent Oregon’s unemployment rate dropped to 5.4 percent in December 2015, from 5.7 percent in November 2015. This decrease moves Oregon’s rate closer to the national level, as the U.S. unemployment rate held steady at 5.0 percent in November and December. A year ago, in December 2014, Oregon’s unemployment rate was significantly higher, at 6.7 percent. Oregon’s payroll employment rose by 2,300 in December, following an upwardly revised gain of 10,900 jobs in November. In December, manufacturing added 1,100 jobs, while government added 800. All of the other major industries performed close to their normal seasonal hiring pattern. “Oregon’s economy finished the year strong, adding 17,100 jobs in the last three months of 2015,” said Nick Beleiciks, Oregon’s state employment economist. “Job growth continues to be wide-
spread, with most major sectors adding more jobs than they usually do this time of year.” Looking back over the most recent 12 months, Oregon’s economy grew rapidly, adding 54,600 jobs in 2015. Oregon’s 3.1 percent growth rate in nonfarm payroll employment was faster than the U.S. growth rate of 1.9 percent. Oregon’s health care and social assistance grew the most during 2015, adding 10,100 jobs, or 4.6 percent. Two other major industries also expanded very rapidly with both growing at close to 4 percent: information (+1,300 jobs, or 4.0 percent) and professional and business services (+8,800 jobs, or 3.9 percent). Next in line were five major industries that each grew by between 3.0 percent and 3.5 percent. These included other services, construction, retail trade, financial activities, and leisure and hospitality. Five other major industries grew at least 2 percent. Mining and logging (-200 jobs, or -2.6 percent) was the only industry to lose jobs.
at a faster rate than tax collections, driving down state-local tax burdens on average. n New Yorkers faced the highest burden, with 12.7 percent of income in the state going to state and local taxes. Connecticut (12.6 percent) and New Jersey (12.2 percent) followed closely behind. On the other end of the spectrum, Alaska (6.5 percent), South Dakota (7.1 percent) and Wyoming (7.1 percent) had the lowest burdens. n On average, taxpayers pay the most taxes to their own state and local governments. In 2012, 78 percent of taxes collected were paid within the state of residence, up from 73 percent in 2011. n State-local tax burdens are very close to one another and slight changes in taxes or income can translate to seemingly dramatic shifts in rank. For example, Delaware (16th) and Colorado (35th) only differ in burden by just over one percentage point. However, while burdens are clustered in the center of the distribution, states at the top and bottom can have substantially different burden percentages—e.g. New York (12.6 percent and Alaska (6.5 percent) .
Biz in brief KCC alumnus to take over catering firm DALTON, Penn. — Farron Charlton, a former student of Klamath Community College in the Culinary Arts/Food Service Management program will be taking ownership of a family catering business, beginning April 1. Called Inne of the Abington’s, the company has served the people of Northeast Pennsylvania and southern New York state since the mid1980s. The facility caters for a variety of events, including weddings, birthday parties, anniversaries, and company meetings and holiday parties, providing food and service for events
Upcoming events: n The Klamath New Professionals Network will hold its second meeting Saturday, Jan. 23, at Public Health starting at 4:30 p.m., moving to Biagio’s at 5 p.m. n The Philanthropic Quest will hold training on the Funding Information Network database at Oregon Institute of Technology on
both on the campus of their facility and off-premise at the location of their clients’ choice. Charlton made the decision to purchase the family-owned business in late December after having several meetings with the current owner who is his brother-in-law. Charlton plans to offer the same level of excellent service and delicious food that the company has become known for in the area. He also plans to eventually expand the operation’s off-premise events, as well as offer more glutenfree options to people in the area. Charlton was a student in KCC’s Culinary Arts and Food Service Management program from September 2013-June 2015. Jan. 27 and Jan. 29. Registration is $10. Contact Heidi Neel Biggs at Klamath Community Foundation for details. n Klamath County is seeking applicants for the Economic Development Advisory committee. Interested complete an application and return it to the Board of Commissioner office. See website at Klamathcounty.org
Basin Business
Housing outlook brightens for coming year
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A roofer works on a home under construction in the Briar Chapel community in Chapel Hill, N.C. U.S. homebuilders enter 2016 feeling better about their sales prospects than they have in years, thanks to rising home prices and gradually improving sales.
Economists see more growth for U.S. economy LAS VEGAS (AP) — A robust U.S. economy and job market, plus low mortgage rates, should help keep the recovery in the new-home market going at a modest pace this year, but a return to pre-housing boom sales and construction levels isn’t imminent. That’s the forecast that David Crowe, chief economist for the National Association of Home Builders, delivered Tuesday during a panel of economists at the trade association’s latest industry convention in Las Vegas. And despite the U.S. economy’s mixed track of growth in “The stock market record 2015, Crowe projects is not a very good that the economy will 2.7 percent this leading indicator of expand year, the strongest gain the economy. I’m not since before the Great Recession in 2008, as terribly concerned consumer spending continues to grow. that the economy “There are a number is going to fall into of positive indicators out there that make recession.” me believe ... this will — David Berson be a good year for the Economist economy and for housing,” Crowe said. “Not only is housing finally driving some of that, housing is finally moving at a much faster pace than the economy.” U.S. homebuilders are entering 2016 feeling better about their sales prospects than they have in years, thanks to rising home prices and gradually improving sales. New-home sales climbed nearly 15 percent through the first 11 months of last year, while construction of single-family homes hit an eight-year high in November. The trends have helped lift construction hiring: Construction companies added 215,000 jobs last year, a 3.4 percent gain. Even so, sales and construction have yet to rebound fully from the housing bust nearly a
Thursday, Jan. 21, 2016, Herald and News
AP photo
decade ago. Whether that progress continues this year will depend largely on the U.S. economy continuing to improve. That’s come increasingly into doubt lately. Faltering growth in countries like China, the world’s second-largest economy, and financial market turmoil have heightened concerns that the U.S. economy could be in for a stumble. There aren’t any major signs pointing to that, however, argued another panelist, David Berson, chief economist at Nationwide Mutual Insurance’s Nationwide Economics. “All of the economic data we look at in the last 50 to 100 years is not flashing warning signs right now,” Berson said. “The stock market is not a very good leading indicator of the economy. I’m not terribly concerned that the economy is going to fall into recession.” He also predicted broad sustained growth for housing this year. The exception: Some of the markets where prices have been rising much faster than income, such as Dallas, or cities that have been reliant on the oil industry for jobs and are now being squeezed by the steel drop in oil prices. The residential construction sector is still recovering from the housing bust and the Great Recession, which officially ended more than six years ago. New-home sales remain below their 52-year historic average of 655,200 as of November. Yet prices are rising. The median new-home sales price was up 0.8 in November from a year earlier
to $305,000. Hiring was relatively strong last year, with employers adding about 245,000 jobs a month. “Unlike past recoveries, employment and the strength of employment is what gives people confidence, gives them income and allows them to feel comfortable in taking on a mortgage,” Crowe noted. His forecast calls for single-family home construction to reach 840,000 this year, up from a projected 711,000 last year. That’s still down from the 1.3 million pace the industry averaged between 2000 and 2003, before the housing boom. On the sales front, he expects new home sales will be about 607,000 this year, up from an estimated 496,000 last year. Homebuilders, which typically hire subcontractors to do construction, carpentry, plumbing and other work involved in building a home, have been struggling with delays and higher costs because of a shortage in labor. A NAHB survey this month found that threefourths of builders who responded listed the labor shortage as their top concern heading into this year. Many are also struggling to find land that’s for sale and ready to build. “And there’s still difficulty in buyers getting mortages, so those will keep (2016) from being even more robust,” Crowe said.
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Basin Business
Thursday, Jan. 21, 2016, Herald and News
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January 2016 Newsletter for Oregon State Senator Doug Whitsett, District 28 Senator Doug Whitsett
R-Klamath Falls - District 28 I represent the citizens of Senate District 28, which includes Klamath, Lake and Crook, as well as parts of Jackson and Deschutes Counties. As Senator of one of the largest Senate districts in the state, it is extremely important that my constituents remain in contact with me about the issues and concerns that affect their lives. You and I must work together to protect the common interests of rural Oregonians. I encourage you to contact my office by either email or telephone so that I can know how to best serve you. I look forward to hearing from you soon. Best Regards, Senator Doug Whitsett
Capitol Address: 900 Court St. NE, S-311 Salem, OR 97301 Capitol Phone: 503-986-1728 Newsletters: www.leg.state.or.us/whitsett Email Senator Doug Whitsett: sen.dougwhitsett@state.or.us
COULD IT BE THE END OF THE DROUGHT... AND THE KBRA? It would appear that both the 2015 drought and the controversial Klamath Basin Restoration Agreement (KBRA) have come to an end. Wet winter storms are once again dominating Oregon weather patterns. Many Oregon streams and rivers are at flood stage and beyond. Amazing videos of the Willamette, Santiam, Rogue and North Umpqua rivers attest to the incredible destructive force of the huge amounts of precious fresh water rushing out to sea. The ground is saturated with water, and snow accumulation is now well above average across most of the state. In the Klamath River Basin, the 2015 end of year snow pack at Crater Lake is more than 50 percent above average. Total precipitation in much of the Klamath Basin for the recently ended 2014-15 water year was actually above average, despite last year’s record low snow pack and the subsequent declaration of drought by Governor Brown. Sharp reductions in early season water deliveries to Klamath Project irrigators were caused by what appears to be grievous miscalculations in available water supply by the National Resources Conservation Service and U.S. Geological Survey. Near normal quantities of water were being delivered to most Project irrigators by early July. The Bureau of Reclamation confirmed it had “discovered” an additional fifty thousand acre feet of “unanticipated and unallocated” water in Upper Klamath Lake by mid-August. The early season curtailments in water deliveries did have a chilling economic effect. The promised water shortage caused many Project farmers to idle land, reduce acres cultivated and to not plant high-value crops that require more water to grow. However, most Project landowners were literally awash in irrigation water by the end of the growing season. Much of the 50,000 acre feet of water that BOR found in Upper Klamath Lake was delivered to the previously fallowed land, or used for late fall and winter flood irrigation. About half of that irrigation water was ultimately delivered to the Tulelake and Lower Klamath wildlife refuges. Both refuges are actually located in northern California. For the fifth consecutive year, Congress has declined to take action on the flawed and controversial KBRA. The Congressional opposition is clearly both broad and bipartisan. Oregon’s U.S. Senators have repeatedly failed to move a bill supporting the KBRA to a Senate vote, even while their Democrat party held a majority in both chambers. House Republicans have likewise refused to consider any bill funding the KBRA, both before and during their current majorities in both chambers. In my opinion, the KBRA has been dead on arrival in Washington D.C. for many important reasons. The KBRA is first and foremost a dam removal agreement. All attempts to remove or alter the dam destruction provision of the settlement agreement has met fierce opposition by both the Tribes and environmental advocates. The destruction of the four PacifiCorp-owned hydroelectric dams on the Klamath River is strongly opposed by most western Republican members of Congress. Many members of Congress philosophically oppose the demolition of inexpensive, carbon-free hydroelectric infrastructure. Moreover, they
have seen footage of the demolition of the Condit Dam on the White Salmon River and realize the destruction of the Klamath River dams would be exponentially worse. They know at least 20 million cubic yards of potentially toxic sediment has been accumulating behind the four Klamath River Dams for almost a century. They are deeply troubled by the nearly unlimited liability that surely would result from releasing that huge plume of toxic sediment into the River. And members of Congress are rightfully concerned regarding the untenable precedent established by what would be the largest peacetime dam removal project ever undertaken in the United States. Emboldened by the KBRA, preservationist groups are now adamantly demanding the destruction of the four lower Snake River Dams. The KBRA continues to be extremely unpopular among most residents of the Upper Klamath River Basin. Virtually every state and county political incumbent and candidate who has supported the agreement was defeated in primary elections. The margins of those defeats have most often been by humiliating two-to-one vote counts. Cyclical years of poor snow pack have periodically contributed to water shortages in the Upper Klamath River Basin. However, many members of Congress now realize the overarching cause of water shortages has been the repurposing of water previously stored for irrigation by state and federal governments. Those changes in water use were created through administrative fiat by state and federal governments. The preponderance of the reallocations have been made without compensation to the landowners whose rights to use irrigation water were taken. Government agencies have reassigned water previously stored for irrigation in Upper Klamath Lake in order to maintain minimum lake levels for the benefit of allegedly endangered sucker fish. Water previously stored for Project irrigators is also being diverted down the Klamath River, allegedly to help the threatened Coho Salmon. These administrative takings of the use of water previously stored for irrigation are the result of the government-created Biological Opinions required by the Endangered Species Act (ESA). The Opinions will remain in place until the ESA is either amended or repealed. The KBRA specifically rejects any action to either amend or repeal any provision of the ESA. I very much doubt if either of those actions will occur during my lifetime. For those reasons, provisions for increased water storage were a cornerstone of the original KBRA negotiation. However, government agencies claimed that cost factors were prohibitive, while environmentalists claimed additional storage would permanently alter hydrographs and harm fragile ecosystems. Virtually all water storage provisions were stripped out of the current version of the KBRA. I believe the consensus of informed Project irrigators understand the KBRA will never provide certainty of water deliveries without provisions for significantly increased water storage. Apparently, many members of Congress share that belief.
The KBRA was negotiated among self-selected parties under strict and enforceable confidentiality contracts. Several state and federal agencies, as well as the Governor’s office, were deeply involved in the negotiations, including the creation of the confidentiality requirements. Many members of Congress have rightfully expressed concern regarding how the KBRA settlement agreement was negotiated. Members of the media, the public and almost all of its elected representatives were prohibited access to the negotiations. In apparent further violation of public records laws, all accounts of those discussions remain confidential. Moreover, one of the prices for a seat at the negotiation table was to pledge to support the entire KBRA settlement adopted by majority vote. Any public expression of dissenting opinions or written minority reports continues to be considered a breach of contract. The only workable solution for Upper Klamath Basin irrigators is to increase water supply. Any viable water management agreement must include a substantial water storage component. The untenable alternative is to give up century-old water rights and agree to irrigate significantly less cropland. Nearly 40 potential sites for surface water storage have previously been identified in the Upper Klamath River Basin by the Klamath County Commission and others. During the winter months, water is available for additional storage in almost all water years. Obviously, this year is no exception. Records show that more than three quarters of a billion dollars of public funds have already been expended on “restoration” activities in the Upper Klamath River Basin. No meaningful water storage facilities have either been developed or seriously contemplated. Meanwhile, due to the Biological Opinions and lack of adequate storage capacity, more than half a million acre feet of storable fresh water flowed through the Basin and out to sea during the recently concluded “drought” year. Make no mistake! The ongoing reduction of water to grow crops for Upper Klamath Basin irrigators can and likely will happen to landowners in many other Oregon watersheds. Under current political conditions, enhanced water storage capacity is the only viable answer to our manmade water shortages. It is long past time for our state and nation’s entire irrigation community to come together to demand the construction of more water storage facilities. We should accept no less from our state and federal bureaucracies. Please remember—if we do not stand up for rural Oregon, no one will. Best regards, Doug Follow the link below to subscribe to an electronic version of my weekly legislative newsletter updates: https://public.govdelivery.com/accounts/ ORLEG/subscriber/new?topic_id=ORLEG_30.