Basin Business October Issue

OCTOBER 2016

Basin Business

Thursday, October 27, 2016, Herald and News

KLAMATH BASIN

Business

Tourism director takes a ride on PenAir’s first flight to Portland

Harbor Freight opens in Klamath Falls

DoubleHead Enterprises

Page 5

Business salvages preserved wood from Tulelake Cold Storage buildings

— Page 4

Ashley Manor Senior Living opens new location — Page 5

Stay away from frightful investment moves — Page 7

H&N photo by Gerry O’Brien

Reba VanAcker, left, and her son, Christopher Green, are using the originally preserved wood from Tulelake Cold Storage for resale. The warehouses have old growth Douglas fir throughout them from the 1930s to the 1960s.

Story on page 2.

A publication of the Herald & News

Chamber: www.klamath.org

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Thursday, October 27, 2016, Herald and

Basin Business

The art of

deconstruction Abandoned potato warehouse gives up well-preserved wood

One advantage of buying a potato storage warehouse is the leftover potato sacks. Chris Green , above, says the variety of sack labels make great framed, decorative wall hangings.

At left: One of the more labor-intensive parts of deconstructing the warehouses is the removal of the original nails. Below right: Tulelake Cold Storage was built almost entirely of wood, well preserved due to the controlled climate inside. It had a sub floor and a second floor, which has been removed in this building.

STORY AND PHOTOS BY GERRY O’BRIEN

H&N Editor

TULELAKE — Step into the abandoned potato warehouse rooms at the Tulelake Cold Storage and one might think there’s nothing left to salvage.

That’s where you’d be wrong. The six buildings and shops — some 120,000 square feet of football field-length buildings just on the edge of town — are filled with wellpreserved Douglas fir wood flooring from the 1930s through the 1960s.

Christopher Green sums it up like this, “It’s a blessing and a curse.”

“Most people want weathered wood to decorate their homes. This wood, having been in a controlled climate for so many years, is dry and very straight and very clean,” he said.

“Reclaimed lumber people are looking for real weathered wood. This isn’t that. At the same time, the lumber used to build these floors was cut from old growth trees, which you don’t see any more. It has a really tight grain to it, is a bit stronger and the grain is prettier than newer wood.”

Green and his mother, Reba VanAcker and her husband, Dennis, are doing business as DoubleHead Enterprises, reclaiming the old wood — floorboard by floorboard — and selling it on the reclaimed wood market. (The DoubleHead name comes from a nearby mountain where Dennis liked to trap).

The family purchased Tulelake Cold Storage in June 2013 after the units had been out of business for 11 years.

“I just hate to see abandoned buildings go to waste, Reba VanAcker said. “I want to recycle everything we can.”

And it provides some seasonal jobs when there are buyers.

When Green put the word out on the internet that DoubleHead had well-preserved timber from the 1930s to the 1960s, a group of Japanese buyers jumped on it.

“They flew out here and were overwhelmed at what we had,” Green said. As it turns out, Japanese love all things from the West. The Japanese reproduce vintage-style door

See WOOD, page 4

Basin Business

Thursday, October 27, 2016, Herald and News

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History of the site

H&N photos by Gerry O’Brien

Reba VanAcker likes to leave nothing to waste. She has a small woodshop to build decorative items from any leftover damaged wood.

Tulelake Cold Storage was built in 1940 for the purpose of storing sacked potatoes in a cool, dry place until they were needed in the marketplace. With cooling efficiency in mind, builders used cement blocks with sawdust insulation on the outside walls. Inside, a wood platform floor was built to keep any moisture away from the potatoes, and the structure was built with a second floor, which was made entirely of lumber, the easiest building media of the time.

Local potatoes were packed into 100-pound bags and delivered to the cold storage. There, due to the lack of machinery, they were hand loaded into small exterior doors, and put on conveyor belts, which then transported them into 12 large bays. When inside, they were once again hand loaded off the conveyors and stacked in the bays. This required a lot of manpower, and many of Tulelake’s locals from that generation have spent time working there.

As local potato sheds grew, they started building their own cold storage facilities, and the Basin’s farmers began growing other crops that didn’t require a cold storage facility. These setbacks, along with the failing health of the owner, led to the closure of Tulelake Cold Storage in 2001.

DoubleHead Enterprises bought the vacant building in 2013 and is now committed to finding new uses for its beautiful, aged wood — in new construction, remodeling or furniture. In our efforts to learn about the lumber used in the building, we discovered that it was purchased from Long-Bell Lumber Co.

The Long-Bell Lumber Story

In 1874, three young men (Robert Long, Victor Bell, and Robert White) went into the business of selling hay in Columbus, Kan. A major expense was the lumber to build a wagon to deliver the hay and sheds to store it. They found out that hay was a poor business, but that lumber was in high demand, so they tore down the sheds and sold the lumber instead. In 1887 Robert White died, and their growing business became the Long-Bell Lumber Co. Seventeen years later, Long-Bell Lumber purchased a controlling interest in Weed Lumber Co. of Weed, Calif. The Weed Lumber Co. harvested its lumber from a logging camp between Weed and Tulelake, which is now known as Tennant, Calif.

The wood used to build the Tulelake Cold Storage buildings was harvested from Tennant in the I930s.

Wood harvested at that time was often “old-growth timber.” Wood from old-growth trees is very strong, with dense growth rings that you don’t find in the trees being farmed today.

Inside the Tulelake Cold Storage’s controlled climate, the lumber was sheltered from the elements. As a result, it has a nice patina on the outside, but under the surface it looks like new, with the character and qualities of old growth timber.

Wood floors, above, were expertly built in the 1930s and 40s and are well preserved in the cold storage buildings. Most of the wood is from old growth Douglas fir.

At left is a framed, vintage potato bag.

At right: An example of the craftsmanship of tongueand-groove flooring and ceilings.

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Thursday, October 27, 2016, Herald and

Basin Business

An ammonia mixture was used as a coolant for the building and had to be removed by the owners.

Wood / Continued from page 2 handles, lamps, clothing, etc.

They use our lumber for flooring, wall coverings, doors and furniture.”

“It was like watching kids in a candy store. They were literally running from place to place. We sold them four container loads of flooring,” Green said, mainly 2- by 12-foot slats.

The buildings have a base floor and secondary floor. The walls H&N photos by Gerry O’Brien are double-layered — insulated with sawdust — and the ceilings Wood floors were expertly built in the 1930s are tongue-and-groove boards as and ’40s and are well preserved in the cold well. Plus, there are sturdy, hand- storage buildings. hewn wood beams supporting it all.

“The floors were built so that there was ventilation for the potatoes,” VanAcker said.

A whole system of air coolant was pumped throughout the buildings. Thus, the wood is well preserved.

The VanAckers are not new to Tulelake or the Klamath Falls area. The couple built and ran the Epicenter bowling center for 12 years. The family runs NorthState Packaging supplies based in Merrill and initially looked at the Tulelake facility for storage units.

“We went to the building auction some 11 years after the plant closed, and nobody showed up, so we made an offer and bought it,” Reba said. “We didn’t want it to just sit there and have nothing happen.” It took a good six months to clean the yards up, and plenty of work remains.

Now Green and the VanAckers and some hired hands are spending their spare time carefully removing the boards and nails, and packaging them for buyers.

Reba also works in a shop making hand-crafted wood items, as does Christopher.

Scrap lumber is sold for firewood.

Then there’s the shop, full of electric engines, truck supplies, truck tires, batteries and other equipment. The group holds sales on the surplus from time to time. And, there’s the leftover potato sacks with historic labels and designs on them. They are even using them to make unique wall hangings.

For now, the operation is a hobby, a labor of love.

“We’re really hoping we get more orders from around the region,” VanAcker said, as the word gets out.

Enjoying the ride on PenAir’s first flight Submitted photo

BY JIM CHADDERDON

Executive director, Discover Klamath Visitor and Convention Bureau If you are like me, you were excited to hear about the resumption of passenger air service to the Klamath Basin this month. It was June 2014 when United Express/Skywest Airlines left — leaving our business community without air service for two years, four months, and four days to be exact.

But now we have PenAir (short for Peninsula Airways) — the 50-year-old airline from Alaska — providing twice-aday service from Crater Lake —Klamath Regional Airport to Portland.

I had the opportunity to be on the first flight out of Klamath, and, on the first flight back into Klamath Oct. 5.

My first impression of the new service was when I went to the airport to check in. For those who remember when Horizon was here, it was just like the good ol’ days. I was greeted (at 5 a.m.) by two cheery, well-dressed and professional PenAir Customer Service personnel who instantly retrieved my reservation. With a friendly “Have a great day Mr. Chadderdon,” I was handed two boarding passes.

After months of delays and strife surrounding T.S.A.’s return to Klamath, I must admit I was predisposed just a bit towards disliking TSA. That said, TSA staff did an outstanding job. They were efficient, polite, and did a great job moving the 30 passengers through the screening process in 10 to 15 minutes. They even singled out Mayor Todd Kellstrom

for “extra screening” which told me they were completely in control! When entering the security area, it was nice to see free bottles of water, courtesy of our airport staff.

Upon boarding, I proceeded to my seat and our SAAB twin-turboprop plane departed without a hitch, following the customary preamble about life vests, oxygen, and what to do in the event of a water landing. The leather seats were comfortable, and while initially ice-cold (it was 5:30 a.m.), warmed up fast. There was plenty of leg room as this model plane is made for 45 seats but configured for 30 passengers currently. Within minutes our professional and friendly flight attendant was pushing her cart down the aisle offering cookies, pretzels and beverages. There were two fresh magazines in the seat pocket in front of me: Klamath County’s Tourism/Relocation/ Business Directory, and, Alaska Airlines’ “Beyond” Magazine (PenAir is a codeshare partner of Alaska’s).

About an hour and 10 minutes later our plane landed flawlessly in Portland on the B-Concourse (which is a far superior gate arrangement than when United or Horizon were here), and I was off to get a hot latte and attend a meeting.

I’m really glad the city, our airport staff, PenAir and community leaders were able to resurrect air service in Klamath. I didn’t realize how much I missed it until I experienced it again earlier this month. I’ve already purchased a couple more tickets for future trips. I know you’ll enjoy PenAir and encourage you to give them a try.

Basin Business

Thursday, October 27, 2016, Herald and News

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H&N file photo

Submitted photo

Living opens new location Celebrating its 20th year in business and a brand new location in Klamath Falls, Ashley Manor is an assisted living facility with homes throughout Oregon, Idaho and Colorado.

The administrator for the new facility is Billi Victor.

Victor is a Klamath native. She graduated from Klamath Union High School and went on to college at Klamath Community College where she obtained her CNA II license.

“We’re extremely proud of the work we’re doing here in Oregon for our residents,” she said, “and we want everyone in the community to help us celebrate.”

An open house and ribbon cutting is planned for Nov. 10 at 11 a.m. and tours of the new facility will be given until 1 p.m. The public is invited to attend. There will be light hors d’oeuvres served, and staff on hand to answer questions. The address to the new facility is 44 N. Homedale Road, Klamath Falls, OR 97603.

Ashley Manor opened its first location in 1996 with the intent of providing specialized care to its residents, while maintaining small, home-like facilities. Each location typically only houses around 15 residents and provides full amenities such as 24-hour assistance, healthy home-cooked meals, and a highly trained staff. The staff describes it as a lowercost alternative to memory care.

As part of its 20th anniversary, the company revamped its brand to a more modern look, indicative of their commitment to staying ahead of the trends in the healthcare field. The staff looks forward to serving the Klamath Falls community.

Veterans Day

The Avenue of Flags will be on display over Veterans Day holiday weekend.

Flags are scheduled to go up on Thursday, Nov. 10 at 10 a.m. and to be taken down on Monday, Nov. 14 at 10 a.m.

Volunteers are needed for both events. Please be at Klamath Memorial Park by 10 a.m. on both days.

FROM H&N STAFF REPORTS

A new Harbor Freight store opened its doors Oct. 18 at 3838 S. Sixth St. in the Town & Country Shopping Center in Klamath Falls.

Some 30 employees have been hired for the 16,500-square-foot store, according to Zubied Ramzan, project lead for setting up the store.

A grand opening is planned for 8 a.m. on Nov. 2, according to Ramzan.

“We’ve got all positions filled at this location,” Ramzan said.

Cumberland Holdings, a California company, purchased the Town & Country Shopping Center in September 2013 for $2.4 million.

“We’re long-term owners,” said Scott Chernoff, a principal at Cumberland Holdings.

“We want to put the right tenants in there.”

Chernoff said Harbor Freight first expressed interest in the South Sixth Street site in April earlier this year and submitted a letter of intent in May. He believes there is potential to fill more spaces at the shopping center in the months to come.

Do you own or manage rental properties?

• • • •

Ever had a tenant pay the rent late or not at all?

Has your property been damaged by a tenant?

Do you need rental forms?

Are you looking to save money when upgrading or repairing your property?

• Are you aware of the Fair Housing regulations?

If you answered “yes” to any of those questions, find out how the Klamath Rental Owners Association can help you.

JOIN TODAY!

4509 South 6th St. Suite 108, Klamath Falls, Ore. 97603 (541) 887-2317 www.KlamathROA.com

1520274

nAshley Manor Senior

Harbor Freight opens in Klamath

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Thursday, October 27, 2016, Herald and

Basin Business

Economic recovery slow, but growth projected

BY DAMON RUNBERG

about 18 percent of jobs in 2014, but represent nearly 24 percent of occupational openings. Office and administrative support occupations accounted for 15 percent of jobs in 2014, but is only expected to represent about 11.5 percent of the job openings by 2024.

The fastest-growing occupation (with a minimum of 20 jobs) by 2024 is projected to be painters (construction and maintenance), growing by 56 percent (+23 jobs).

Other fast growing occupations include fitness trainers, personal care aides, carpenters, and health care social workers.

Not surprisingly, the occupations with the most openings are retail salespersons (462), waiters/ waitresses (275), food preparation and serving workers (212), and registered nurses (191).

A relatively high share of the openings for retail salespersons, waiters/waitresses, and food preparation and serving related workers are replacement openings due to the high turnover of these occupations.

Educational requirements for the jobs of 2024 are expected to be little changed from 2014. Just under 25 percent of jobs in South Central Oregon require a Bachelor’s degree or higher to be competitive for the position. That figure is projected to be unchanged by 2024.

Occupations that require postsecondary training (non-degree), such as apprenticeships or certificates, are expected to be the fastest growing with over 9 percent more openings in 2024.

Oregon employment department The economic recovery from the Great Recession has been painfully slow in Klamath and Lake counties. As of April 2016, employment levels in Klamath County remain 9.3 percent below the pre-recession peak, while Lake County employment levels are 10.8 percent lower.

Every two years, the Oregon Employment Department’s Research Division calculates 10-year industry and occupational employment projections. The most recent projection cycle shows Klamath and Lake counties are expected to add 1,750 jobs, a growth of 7 percent, between 2014 and 2024. South Central Oregon is expected to approximately reach 2007 peak employment levels by 2024, a 17-year “recovery”.

Industry projections

The private sector is projected to grow at a slightly faster pace (+8%) than the economy as a whole due to very South Central job gains in Oregon is expect- few the public sector. ed to see 8,550 Four industries new job openings account for over by 2024. Of those, 70 percent of the job nearly 6,500 (75%) projected growth in the are replacement region. Health openings due care and social assistance is proto retirement or jected to add the turnover. The most jobs (+490), remaining open- which is highly ings (2,080) are influenced by the aging populadue to new or tion. Leisure and expanding hospitality, pribusinesses. marily tourism related, is also expected to add a significant number of jobs (+350). The fastest growing industry is expected to be construction, expanding by 32 percent (+250 jobs). Despite this fast growth, industry employment will remain significantly below levels seen during the housing boom in 2006.

Finally, notable gains are also projected in natural resources and mining (+160 jobs).

Growth is projected to be concentrated in farming and ranching, as well as, support activities for forestry.

A handful of industries are expected to decline in the long-term. These include information and financial activities, as

Regional projections

well as, general merchandise stores. The decline in general merchandise stores includes the recent closure of the two Haggen’s in Klamath Falls. The industry is not expected to experience any further declines after accounting for these layoffs.

The Federal Government, a large employer in South Central Oregon, is projected to shed 60 jobs by 2024.

Those losses will be balanced by modest gains in state government (primarily higher education jobs). Employment levels in local government are not expected to be significantly different by 2024.

Occcpational projections

South Central Oregon is expected to see 8,550 new job openings by 2024. Of those, nearly 6,500 (75%) are replacement openings due to retirement or turnover.

The remaining openings (2,080) are due to new or expanding businesses.

At the broad occupation group level, construction (15.3%), health care (13%), and service (12.5%) top the list for fastest growing by 2024. The most job openings are projected to be in service occupations (590 openings) and health care (273 openings).

Service occupations accounted for

Projections were estimated for 13 regions across the state. Job growth in South Central Oregon ranked amongst the slowest by 2024. Northeast (+6%), South Coast (5%), and Southeast Oregon (+3%) were the only regions projected to grow slower than South Central Oregon (+7%).

Projected growth in Klamath and Lake Counties is around half of the statewide growth (14%) and considerably slower than Central Oregon (+16%), which is projected to be the fastest growing region in the state.

To see industry and occupational employment projections for South Central Oregon and other areas in East Cascades, visit www.QualityInfo.org, click on Publications, and under the Employment Projections find your area of interest, or contact me at 541-706-0779 or damon.m.runberg@oregon.gov.

Basin Business

Avoid frightful investment moves Halloween is almost here, and most households will see some “scary” costumes that will probably made you smile. But in real life, you can easily find some things that truly are frightening — such as bad investment moves.

Here are a few that you’ll want to avoid: ■ Chasing after “hot” stocks. Many so-called “experts” — not to mention your friends, neighbors, relatives and co-workers — are more than willing to provide you with “tips” on “hot” stocks.

But by the time you hear about these stocks, they may already be cooling off — and, in any case, they may not have been appropriate for your needs in the first place.

■ Investing too aggressively or too conservatively. If you constantly worry about the value of your investment portfolio, and you lose sleep whenever the market drops sharply, you might be taking on too much risk for your own comfort — so you may need to invest somewhat less aggressively. Conversely, if you invest primarily in conservative, low-yielding investments because you think they will help you avoid losses, you might not achieve the long-term growth potential you need to help you reach your important financial goals, such as a comfortable retirement. When you invest, try to balance your need for growth with your personal tolerance for risk.

■ Failing to diversify. If you only own one type of financial asset, and a market downturn hits that asset class strongly, your portfolio will likely take a big hit. You can greatly reduce the effects of market volatility — and give yourself more chances for success — by spreading your money among a range of investments. (Keep in mind, though, that diversification can’t always guarantee profits or protect against all losses.)

■ Paying too much attention to today’s news. Unfortunately, many of

the news items of today — or of any day — are more negative than positive. But as an investor, you don’t want to be forced into a “sky-is-falling” mentality, because such a mind-set could lead you to make rash, unwise decisions, such as selling quality investments too soon or staying out of the market altogether. Generally, no single event has truly long-term consequences for investors. Consider the recent “Brexit” vote – in the immediate aftermath, the markets fell sharply, but just a few weeks later, they hit all-time highs. That won’t happen with every newsworthy occurrence, but historically, the markets have shown resilience. So stay invested and follow a smart, longterm investment strategy that’s suitable for your situation — and look beyond today’s headlines.

■ Ignoring opportunities. Are you taking full advantage of all the investment opportunities available to you? For example, are you contributing as much as you can afford to your 401(k) or similar employer-sponsored retirement plan? If not, you are underutilizing one of the best retirement savings vehicles around. At a minimum, put in enough to earn your employer’s matching contribution, if one is offered. You won’t always have the chance to participate in this type of tax-advantaged retirement plan — so make the most of it while it’s available.

Halloween usually ends with few tricks and many treats. Steering clear of the scary investment moves described above can help you make steady progress toward your financial objectives.

Submitted by: Meredith Hoffman Financial Advisor-Edward Jones 1307 S Alameda Ave, Suite B Klamath Falls, OR 97603 541-273.2483

www.heraldandnews.com

Thursday, October 27, 2016, Herald and News

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Klamath County Chamber accepting nominations for 96th annual Awards Gala The Klamath County Chamber will celebrate the accomplishments of its members and the community on Jan. 14 at the 96th Annual Awards Gala. The socializing and networking pre-ceremony will take place in the Ross Ragland Theater lobby with catered food and beverages, and awards will be presented in the auditorium, according to a news release.

Last season, the Klamath County Chamber of Commerce welcomed close to 300 guests to their 95th Annual Awards Gala sponsored by Washington Federal.

The gala is the time when the Chamber recognizes dedicated efforts on behalf of the Chamber members and entire community. Before the gala, Chamber members are asked to nominate businesses and/or individuals who show support and dedication to our community. From the nominations, a committee selects the winner of each award.

The Chamber is accepting nominations for the following awards (see the Chamber website for category details):

Big Idea Innovation Award ■ Environmental Leadership Award ■ Commitment to Community Award ■ Best Place to Work (two categories) ■ Spirit of Entrepreneurism ■ Lifetime Achievement ■ Pathfinder Award Call 541-884-5193 for more information; nomination forms can be found at www.klamath.org. Nominations can be submitted electronically, by submitting the nomination form via email to inquiry@ klamath.org, or via mail at 205 Riverside Drive, Suite A, Klamath Falls, OR 97601.

Deadline for nominations is December 28, 2016. Tickets to the event are on sale now.

■

Contact the Chamber of Commerce Klamath County Chamber of Commerce 205 Riverside Drive, Suite A Klamath Falls, OR 97603

Mark Fay, M.D. Scott Stevens, M.D. Physician/ Surgeon of the Eye Physician/ Surgeon of the Eye

Office: 541-884-5193 Fax: 541-884-5195 Heather Tramp: Marketing and Program Coordinator

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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Basin Business

Thursday, October 27, 2016, Herald and

Paid Advertisement

October 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

ECONOMIC DEVELOPMENT HIGHEST PRIORITY

Enhancing local economic development has been one of our highest priorities during the 12 years we’ve enjoyed representing Klamath County in the Oregon Legislature.

Klamath Falls lost its only commercial passenger service when SkyWest ended flights from Crater Lake Klamath Regional Airport in June of 2014.

Rural airports across Oregon were experiencing similar loses of commercial air service.

Representative Whitsett and I recognize commercial air service is essential, for both the maintenance of local businesses and for future economic development. It is equally crucial for maintaining the 173rd Fighter Wing’s mission and $100 million annual economic impact at Kingsley Field.

Gail and I decided to try to help solve the problem during the 2015 Legislative Assembly. We first met with Oregon Department of Aviation Director Mitch Swecker to determine what needed to be done to move forward.

We decided on a plan to increase the tax on jet and aviation fuel to create a new, dedicated source of revenue to help subsidize rural air services.

Director Swecker was eager to work with us. However, he cautioned that increasing the taxes on jet fuels had been tried several times before, with no success. He was correct in warning that the commercial air carriers, and especially the airports at Portland, Eugene, and Medford, would be adamantly opposed.

We then enlisted the aid of three influential Democrats to help us move the plan forward. First, we ask our close friend Senator Betsy Johnson (D-Scappoose), who co-chairs the Ways and Means Subcommittee on Transportation and Economic Development, to help. Gail is a member of Senator Johnson’s subcommittee and we both sit on the budget-writing full Ways and Means Committee.

We then met individually with Senate President Courtney (D-Salem) and House Speaker Tina Kotek (D-Portland). They both agreed to support the plan, but only if Gail and I could bring “a lot” of Republican votes for the jet fuel tax increase.

The result was House Bill 2075. The bill originated in Gail’s House Revenue Committee. That committee is chaired by a Eugene Democrat, who was not too eager to support the jet fuel tax increase, because it raised about 90 percent of the new revenue.

Nevertheless, the bill moved out of committee and through the Ways and Means process. As promised, we delivered the Republican votes. In fact, only a total of four Republicans voted against the bill.

It passed the House 53 to 5 and the Senate 26 to 3.

As enacted, and signed by Governor Brown, the new law will raise about $7.5 million per budget cycle. One-fourth of the new revenue is dedicated for subsidizing commercial air service to rural Oregon, including the Crater Lake Klamath Regional Airport.

The Federal Aviation Administration (FAA) recently raised the required local match for federal airport improvement grants from five to 10 percent.

Smaller Oregon communities were finding it very difficult to find resources for

the doubled amount of the required local match.

Half of the new HB 2075 money is dedicated for funding the required 10 percent match for FAA grants, as well as for economic development and emergency preparedness. The remaining quarter of the revenue is dedicated to safety and infrastructure improvements at state-owned airports.

The local airport also applied for a Connect Oregon transportation grant to help build a new hanger that Penn Air may use as an aircraft maintenance facility. The grant application was originally ranked 38th on the statewide list of applications.

Gail and I encouraged some of our Democrat colleagues to recognize how important the creation of an aircraft maintenance shop at Klamath Falls could be to Penn Air’s willingness to continue future passenger service to Klamath Falls. Ultimately, the Connect Oregon committee reconsidered the ranking and gave the local airport the full amount of the requested grant.

Penn Air restored commercial air service to Klamath Falls on October 5. It will provide three daily roundtrip flights to Portland.

Projects that improve and modernize the Highway 97 and 140 freight corridors represent another important economic development resource. We all know how important Highway 97 is to our economy and we are told the build-out of Highway 140 East is the single most important state highway improvement project for the Oregon Trucking Association. Modernization projects for those highways in Klamath County have been one of our highest priorities.

Since I first took office in 2005, the Oregon Department of Transportation has invested the better part of $100 million in at least 25 Highway 97 modernization projects in Klamath County, including construction of several new passing lanes, reconstruction of the Sun Mountain grade, replacement of the Spring Creek Bridge and important safety improvements along Upper Klamath Lake. During the same period ODOT has invested at least $75 million completing more than 20 Highway 140 upgrades in Klamath County, including total rebuilding the highway over Doak and Bly Mountains, realignment of the Beatty Curves, replacement of the roadbed over the Caledonia Marsh, the construction of the Washburn Way overpass and more than a dozen other intersection realignment and safety upgrades.

The completion of these projects has greatly improved safety and reduced travel time while enhancing our major freight corridors.

During our first session in Salem, we were able to enact SB 81, which came to be known as the “Klamath rate shock” bill. At the time, local irrigators were facing a tenfold increase in their electricity rates because PacifiCorp had refused to renew their contracts to deliver low-cost power in exchange for the company’s right to generate electricity on the Klamath River. The irrigators had received the low-cost power for 100 years.

SB 81 reduced the shock by phasing-in the rate increase over seven years for PacifiCorp customers in Klamath County. The benefit for local irrigators increased significantly after the bill was signed into law by Governor Kulongoski because PacifiCorp power rates nearly doubled during the ensuing seven years. One well-respected Portland utility attorney estimated

the Klamath County irrigators’ total savings over seven years was between $75 million and $100 million.

Gail and I understand that Oregon Tech is very important to our community. The school’s payroll, combined with the money Tech students spend locally, has a huge positive impact on our local economy. We have worked closely with the last two Oregon Tech Presidents to ensure our only poly-technical university receives its fair share of Oregon’s higher education budgets.

We believe Oregon Tech has benefited significantly from the close relationships we have maintained with the Democrat Speaker of the House and Senate President, as well as the Democrat co-chairs of the Ways and Means Committee. During our 12 years in Salem, our local university has received nearly $100 million in new construction bonding. The resulting facility enhancements have enabled the school to greatly enlarge both its student body and the wide array of technical courses it is able to offer them.

Oregon Tech has emerged as one of the best regional universities, currently being ranked eighth in the west. It is most highly ranked and recognized by many nationally known companies for its students’ return on investment, based upon their starting and median career salaries.

Early on, we worked with then-Rep. Bill Garrard to establish Oregon Tech as the Oregon Renewable Energy Center. State investments in geothermal and photovoltaic generation have allowed Oregon Tech to be the nation’s only energy independent university. Our strong legislative efforts with the Oregon Public Utility Commission helped the school receive a waiver that allowed it to maintain the full economic benefit of its on-campus electricity generation capacity.

More recently, Gail and I suggested the Catalyze Klamath concept to then-Oregon Tech President, Dr. Chris Maples. We told him we were concerned that so few Oregon Tech students remained in Klamath Falls following graduation. We ask him to create a competition among Oregon Tech students and recent graduates to establish the best business plan to create a company in Klamath Falls and offered to personally finance more than half of the first year’s award money.

The Catalyze Klamath competition was so popular that the prize money and in-kind contributions more than doubled in its second year. One business has already been established and more may be on the way. It is our hope that the new Oregon Tech President and local community leaders will maintain and grow the competition.

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.

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