February 2019 by Southern Oregon Business Journal

FEBRUARY 2019

Inside this Issue: Counties Support Forest Management Act, pg 7 Eugeneâ&#x20AC;&#x2122;s Multi-Unit Property Tax Exemption, pg 8 Brookings Harbor pg 18 Pacific Source 85 Years pg 35

Crook County Courthouse

Groundhogâ&#x20AC;&#x2122;s Day on February 2nd is a humorous way to include fuzzy animals in our search to end the cold weather of winter. Winter is fine for a while, but many of us have our fill by the end of January. Warmer weather and sun are preferred before the official date of spring in March. It often means the labor force will pick up from a winter lull.

Judging from the construction projects underway in southern Oregon it is easy to wonder if the building and construction trades have their own season. Weather has not slowed the projects by much, if at all, in our corner of the state. I think every community college and university has something built recently or currently under construction. Oregon agricultural products and lumber should be making headlines in 2019. Mass lumber and CLT are set to explode in the U.S. with Oregon leading the way. With the continued low unemployment rate and spring around the corner there is good reason to believe our economy will continue in a good state for another year. By the construction we see around the state, I will remain optimistic. Trade and tariffs are an interesting element but the deeper challenges in separate economies is the desire to improve economic development enough to be competitive internationally. Watch everything. This could be quite an interesting year.

Greg

The Southern Oregon Business Journal extends sincere thanks to the following companies for their continued presence as important cogs in the wheels of industry in southern Oregon.

Southern Oregon Business Journal

A JOURNAL FOR THE ECONOMICALLY CURIOUS, PROFESSIONALLY INSPIRED AND ACUTELY MOTIVATED

Contents Inside This Issue 4. KCC & OIT - Military Friendly 8. Final Equal Pay Act Rules 10. Springfield Chamber Banquet 12. Oregon Cannabis FAQs 16. Brookings-Harbor Area’s Economic Focus 21. Excellence in Education awards 22. EDGE Local Innovation

FEATURED 7. AOC Supports Forest Management 13. Eugene’s MUPTE 18. Crab Feed - North Bend 19. America Employed 35. Pacific Source 85 Years

24. Strategy Map Path to Prosperity 26. Women Entrepreneurs of Southern Oregon (WESO) 29. O P P O R T U N I T Y Z O N E S : W A L K , D O N ' T R U N 30. Florence 31. Rogue Valley 2018 Labor Force 40. Antelope Bridge - Eagle Point

Crook County Courthouse

703 Divot Loop Sutherlin, Oregon 97479 www.southernoregonbusiness.com 541-315-6127

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COVER PHOTO AOC Photo

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CONTACT: Ashley Van Essen, Public Relations Representative Phone: 541.885.1162 ashley.vanessen@oit.edu

Oregon Tech Earns 2019-2020 Military Friendly School Designation

Jan. 23, 2019, KLAMATH FALLS, Ore.

Oregon Institute of Technology, “Oregon Tech,” has earned the 2019-2020 Military Friendly® School designation. Institutions earning the Military Friendly School designation were evaluated using both public data sources and responses from a proprietary survey. In its 10th year, the Military Friendly school list is a standard for which higher education institutions provide the best opportunities for veterans and their spouses. This year only 766 schools earned the designation. The 2019-2020 Military Friendly Schools list will be published in the May issue of G.I. Jobs magazine and can be found at www.militaryfriendly.com.

Methodology, criteria, and weightings were determined by Viqtory Media with input from the Military Friendly Advisory Council of independent leaders in the higher education and military recruitment community. Final ratings were determined by combining the institution’s survey scores with the assessment of the institution’s ability to meet thresholds for Student Retention, Graduation, Job Placement, Loan Repayment, Persistence (Degree Advancement or Transfer) and Loan Default rates for all students and, specifically, for student veterans. University veteran’s affairs rankings and surveys are managed through the efforts and attention of Oregon Tech’s veteran’s certifying officials, Mindy Miranda and Anne Malinowski. For more information about Oregon Tech’s student veteran program, visit www.oit.edu/admissions/ student-veterans.

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AOC Supports Forest Management of Rural Stability Act Rural communities where the federal government owns most of their land have been strapped into the front seat of a financial roller coaster. For more than 100 years, counties with public forest lands have received federal support, but faced the ups and downs of fluctuating and uncertain payments. Most recently, federal support has come through the Secure Rural Schools and Community Self-Determination Act (SRS), originally enacted in 2000. SRS has provided more than $6 billion for essential county services, schools, and roads. However, SRS expired at the end of Fiscal Year (FY) 2018 and a counties ability to support good schools, safe roads and other essential services is again plunged into uncertainty. Oregon’s Senator Ron Wyden, and Senator Mark Crapo from Idaho have drafted a congressional bill that could provide much-needed certainty to the rural counties supporting our public lands. The Forest Management for Rural Stability Act (FMRSA) ends the financial roller coaster by creating a permanent endowment fund of stable, increasing, and reliable funding for county services, separate from annual appropriations. Highlights of the FMRSA include:

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Along with an initial, one-time congressional appropriation to seed the new endowment fund (Fund), annual commercial receipts generated on Forest Service, National Wildlife Refuge Revenue Sharing (RRS), and Oregon and California (O&C) lands (managed by the Bureau of Land Management) will be deposited annually into the Fund. Receipts from each will be held in separate accounts within the Fund.

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As timber harvests on federal lands grow, funding to counties will also grow. Funds earned off the interest from the endowment’s investments will finance payments to the counties.

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Payments to counties will have a baseline of no less than FY 2017 SRS and RRS funding levels, and are distributed to counties using the SRS formula

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(with 85 percent of payments for Title I and 15 percent for Title III) and RRS formula.

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SRS Title I payments to Forest Service counties are used for roads and schools, and the Act expands the authorized uses of Title III, giving counties greater flexibility in using Title III payments.

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Payments to counties will continue to grow each year until payments from the fund equal the highest total SRS and RSS payment. At that point, counties will get both a stable base payment from the fund AND will receive traditional timber harvest receipts.

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Congress will charter a new non-profit corporation to manage the Fund. The corporation is independent from the U.S. Government to ensure the Fund is held in perpetuity and best serves the financial interest of the local governments receiving the payments. This Act guarantees counties a minimum payment while the Fund grows from its initial one-time seed appropriation. If at any time available earnings fall short of the payments required for that year, the shortfall will be made up from the Treasury. To read the full bill, the section by section summary, and the AOC memo to the Legislative Committee, visit the Natural Resources page. http://oregoncounties.org/natural-resourcescommittee/

Contributed by: Susan Morgan AOC Legislative Manager Representing Oregon counties since 1906, the Association of Oregon Counties unites counties to advocate, communicate, and educate through information sharing and consensus development. Association of Oregon Counties, 1201 Court St., NE, Suite 300, Salem, OR 97301

Unsurpassed resources for great employers

NewsBrief Final Equal Pay Act Rules Published By: Jenna Reed, JD, General Counsel and Director, Compliance Services Cascade Employers Association jreed@cascadeemployers.com On November 19, the Bureau of Labor and Industries (BOLI) published the final rules for Oregon’s Equal Pay Act which will take effect on January 1, 2019. The final rules have relatively few changes from the proposed rules which were published late this summer. Below is a summary of the changes from the proposed rules which we discussed early this fall. Work of a comparable character In determining if work is of a comparable character, the final rules state that in terms of evaluating if the work requires substantially similar knowledge, skill, effort, responsibility and working conditions, no single factor is determinative. This just reinforces that employers may consider multiple factors amongst the list of characteristics identified in the rules.

compensation for a current employee. The proposed rules differentiated between current employees and job applicants. The Act prohibits employers from inquiring about an applicant or employee’s current or past compensation or using it as a basis for determining current compensation or screening applicants. The proposed rules explained that – regardless of how the information is obtained – an applicant’s past or current compensation may not be used to determine:

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An applicant’s suitability for employment to group, sort, or select at any stage of the hiring process; or

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A current employee’s eligibility for an internal transfer, move or hire to a new position with the same employer.

The final rules also removed the language that stated “minor differences in knowledge, skill, effort, responsibility and working conditions will not prevent jobs from being comparable.” This language was replaced with language that says, “Evaluations of work of a comparable character need only consider comparisons of Oregon employees as defined in OAR 839-008-000.” This just references the definition of an employee.

This second bullet point was one of the more interesting things we found in the proposed rules, and while the wording was not completely clear, it appeared to be saying that you must first determine whether a current employee is eligible for an internal promotion/transfer without any regard to current compensation. Current compensation can then be “considered” after eligibility is determined.

In addition, among the various items listed for evaluating similar skill, the final rules added “creativity” and “precision.”

The final rules remove references to current employees and only refer to job applicants. Presumably, the intent is that the same rules apply to current employees and external applicants meaning it is an unlawful practice to screen all applicants based on current or past compensation, including using information “however obtained,

Language regarding seeking and screening job applicants based on compensation was slightly modified, removing language regarding

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about a job applicant’s current or past compensation to determine a job applicant’s suitability for employment.” Importantly, ORS 652.220 (1)(d) states it is also unlawful to “Determine compensation for a position based on current or past compensation of a prospective employee. This paragraph is not intended to prevent an employer from considering the compensation of a current employee of the employer during a transfer, move or hire of the employee to a new position with the same employer.”

Put together, the current or past compensation of current employees must not be used as an initial screening tool, but can be considered after suitability and eligibility is determined. For the new job, the employee will still need to be paid equitably compared to individuals who perform work of a similar character, and disparities can be justified only by the factors outlined in the law. Compensation in an employee’s prior position cannot be used to justify a disparity. Change in how “necessary and regular travel” is defined for justifying differentiations. Amongst the bona fide factors for justifying pay differentials for employees performing work of a comparable character is travel. The proposed rules included, “Necessary and regular travel, which does not include normal travel between home and work.” The final rules removed the language “which does not include normal travel between home and work.” With this language removed, it suggests that normal travel between home and work could be considered as a differentiator under workplace location.

Rules regarding an equal pay analysis and surveying employees. The proposed rules were not particularly helpful or insightful on conducting an equal pay analysis and the final rules were unchanged defining it as “An evaluation process to assess and correct wage disparities among employees who perform work of a comparable nature.”

in order to conduct an Equal Pay Analysis have to inform employees of the purpose of the survey and give them the ability to complete the survey without including their name. All of the language regarding Equal Pay Analysis surveys has been removed from the final rules. Of course conducting these types of surveys present various challenges and we recommend getting guidance before conducting a survey of your employees in order to conduct an Equal Pay Analysis. We know this can be confusing and overwhelming and January 1 is not that far away. We will explore this more in our Annual Compliance Update and of course, if you’d like assistance making sure you’re in compliance, please give us a call.

Contact Cascade Cascade welcomes your questions, comments, and suggestions. Please contact us: •

By submitting a contact form

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By e-Mail to a specific staff person

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By phone at 503.585.4320 (Salem) or 503.224.5219 (Portland) or 800.835.5518 (Toll Free)

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By fax at 503.585.4322

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By visiting our main office

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By mail to: Cascade Employers Association 4068 Hudson Avenue NE Salem, OR 97301

However, the proposed rules also included language that stated employers that survey their employees

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Review MUPTE Frequently Asked Questions June What Is MUPTE? How does it support multi-unit residential development? How does the City determine if a housing project can receive a MUPTE? Why should the City of Eugene support dense housing in the downtown core? Can MUPTE support affordable housing? Does MUPTE cause the City to reduce its tax revenue? How effective has MUPTE been?

The rapid growth of Eugene since 2015 can be credited by a number of activities in the business and public communities of the area. City leadership has been very active in the recruitment of industry (look at the tech industry) and being ready to discuss new ideas for the success of entrepreneurs and their start-up ideas as well as established companies and leaders who are decades into the economic development of the area. Reviewing one of the many creative ideas responsible for some of Eugene's growth seems appropriate. Every idea, every idea for change, every divergent thought has its supporters and its opposition. MUPTE is an example of that kind of idea. Here is a Q&A of MUPTE for your review:

Greg Henderson, Publisher Southern Oregon Business Journal What Is MUPTE? MUPTE is the Multi-Unit Property Tax Exemption. It is a state-enabled program designed to be an incentive of redevelopment of residential properties in city centers and along transit corridors. In Eugene, the City Council has authorized the use of MUPTE in the downtown area and west of the University. The program has been discontinued in the West University area and it has been narrowed

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so that student housing is no longer eligible. MUPTE allows new multi-family units (5 or more units) to avoid property taxes on the value of new residential construction for up to 10 years. The property continues to pay taxes on the land value and any commercial portion of the property. How does it support multi‐unit residential development? The intent of MUPTE is to lower operating costs in the early years of a housing development so that it becomes financially feasible. In a housing market like Eugene, market rents are lower than in larger metropolitan areas, but the cost of construction is as high. The rents here make it difficult to build dense housing (that is, tall buildings) in the downtown core—taller buildings are more expensive to build than shorter buildings. New residential development does not ‘pencil out’, so new residences in the downtown core do not get built. It is more expensive to build downtown than on greenfield sites on the edge of town, because it is more complicated to build in an existing neighborhood where there is less elbow room. A high priority action item within the Eugene Climate and Energy Action Plan is to increase density around the urban core and along high-capacity transit corridors. National data show that individuals living in city centers drive, on average, fewer miles than individuals in other parts of a community. Downtown is walkable, has good access to transit, and offers goods and services for residents’ daily needs. More residents in the downtown will result in lower per capita carbon emissions and other automobile emissions (including carbon monoxide, nitrogen oxides, sulfur oxide, and particulate matter). Housing in the downtown core also positively affects the economic activity in the city center. For example, new residents in the downtown support local businesses because they increase demand for

nearby goods and services. Also, an occupied building creates an active use, which enhances the overall vibrancy of the downtown. The chart below shows property tax per acre for a variety of development types and locations throughout the community. The chart shows that dense development in the downtown core generates substantially more tax revenue per acre than any other part of the city. And the dense development costs less to serveâ&#x20AC;&#x201D;the cost per resident for roads, water, and sewer are significantly lower.

Can MUPTE support affordable housing? To understand if MUPTE would be a useful tool for affordable housing, one should understand how affordable housing is developed. There are other tools the City of Eugene uses to construct affordable (subsidized) housing, including the LIRPTE (Low Income Rental Housing Property Tax Exemption) program. Like MUPTE, it offers a property tax exemption for the value of the new housing construction, but over a 20-year period. Over the past several decades, the City has invested in thousands of units of affordable housing created

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through partnering agencies like St. Vincent DePaul, HACSA, and Cornerstone Housing. These units are only available to individuals and families typically earning less than 60% of area median income, and the below-market rents typically apply to 100% of the units. There are currently 680 units of affordable housing in the downtown core area, and HACSA is proposing an additional 50 units. There are approximately 4,600 units of affordable housing throughout Eugene.

To compare MUPTE to existing affordable tools, consider a new apartment complex with 300 units. If 30% are rent-restricted, there will be 90 affordable units. They will maintain affordable rents for 10 years, creating 900 unit-years of affordable housing. Compare that to a new affordable housing development with 90 units. Those units must maintain their affordable rents for 50 years, so the 50 new units would create 4,500 unit-years. Over the long term, existing affordable housing tools create many more units of affordable housing. Not only do the rents remain affordable for a 50-year period, residents typically receive support services related to job

skills, employment opportunities, and health.

Does MUPTE cause the City to reduce its tax revenue? The exemption has the ability to make a project financially feasible. If it is not financially feasible, it does not get built, so the City and other taxing jurisdictions never get the tax revenue. With the exemption, they get the tax revenue after 10 years. The exemption can make a housing financially feasible, and the City grows its tax base in the long term. For example, the 50-unit Tate Condominium project used the MUPTE 9 years ago. When it comes onto tax rolls in 2016, it will generate approximately $262,000 in tax revenue. Without the new structure, the property would generate about $3,300 in tax revenue. Because MUPTE encourages development is in the downtown core, the City is able to more efficiently provide services than in less dense parts of the community. Dense development requires less pavement, less sewer line, and less water line than in low density areas. The City generates more tax revenue per acre and spends less per acre. Using the Tate Condominium as an example again, when it comes onto the tax rolls next year, it will generate approximately $300,000 per acre in annual property tax revenue. In comparison, an acre of single family housing generates about $20,000 per acre annually. Over a 20-year period, the Tate will generate more than 7.5 times the tax revenue per acre, when compared to single family development, even with a 10-year tax exemption. There have been 28 residential projects that have received a MUPTE since 1978, creating 1,400 units. The private developers invested $283 million in those projects. The total combined tax revenue being generated on the 28 properties was approximately $133,000 per year before the projects were constructed. When all of these projects come onto the tax tolls, they will generate approximately $2.5 million per year in property tax revenue. The City did not have to invest any public resources (i.e., cash) to achieve this significant increase in tax revenue. In fact the private sector was responsible for the entire investment and took all of the

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investment risk. The Cityâ&#x20AC;&#x2122;s primary role was to sit patiently for 10 years waiting for the added value to come onto the tax rolls. How effective has MUPTE been? Since 1978, the program has supported the development of about 1,500 units in the city center. No new housing structures have been built in the downtown core without MUPTE or some other property tax exemption for at least two decades. MUPTE has been essential to building density in the core. Since at least 1990, all downtown market-rate housing developments have used MUPTE. The two affordable housing complexes (the Aurora and West Town on 8th) used the 20-year Low Income Rental Housing Property Tax Exemption, in addition to other financing tools specifically available to affordable housing developments. The last market rate ownership housing (non-student) newly constructed within the downtown MUPTE area was the Tate Condominiums built in 2006. The last market rate rental housing (non-student) newly constructed within the downtown MUPTE area was Broadway Place, built in 1998. The downtown housing vacancy rate has been at or near zero for many years, but there has been virtually no new construction. This points to some basic economic deficienciesâ&#x20AC;&#x201D;generally, the cost of new construction is high and the local market rents are too low to support the cost of dense construction. Local firms have worked to build new housing projects in the city center, but have discontinued their planning. The developer of a proposed mixed-use project at 6th and Oak has put the project on hold, citing uncertainties related to MUPTE. The UO Foundation had proposed to build large amounts of market rate and affordable housing on the riverfront site, but exited the project, citing high risk and low investment returns.

Brookings-Harbor Area’s Economic Focus Shared by Leisure and Hospitality, and Health Care and Social Assistance By: Annette Shelton-Tiderman

Regional Economist: Coos, Curry, and Douglas counties Oregon Employment Department | 541-252-2047

Curry County is home to nearly 23,000 people, and the incorporated town of Brookings accounts for nearly 30 percent of the county’s population. However, Brookings’ economic activities are interwoven with those of the adjacent, unincorporated community of Harbor. Population figures alone do not adequately represent the dynamics of this area. On an employment basis, Curry County reports roughly 6,365 jobs, 69 percent of which are located in the Brookings-Harbor area. For this summary, the Brookings-Harbor area is defined as census tracts 9503 (including 0.01 and 0.02) and 9504; cited county data will exclude these tracts.

Often called “the sunbelt of Oregon,” this southwestern corner of the state has a well-deserved reputation for attracting tourists and retirees. It is no surprise that Brookings-Harbor’s employment in the leisure and hospitality sector leads that of health care and social assistance by only a few jobs. Together, these sectors account for nearly four out of 10 area jobs. Countywide, these two industries ranked second and third; together they provided 30 percent of this rural county’s employment. Trade, transportation, and utilities ranked third in the Brookings-Harbor area employment and first across the rest of Curry County. Typically, this sector encompasses a wide variety of businesses and occupations. In Curry County, 85 percent of the employment in that industry is in retail trade, which supports many tourism-related endeavors.

Southern Oregon Business Journal

Although both the BrookingsHarbor area and the county see just over half of all employment generated by the top three sectors, the presence of other sectors differs. For example, the manufacturing footprint is twice as big in Brookings-Harbor as in the rest of the county. In contrast, public administration, those services provided by government entities, has a greater presence outside Brooking-Harbor, where only 2 percent of employment falls under government ownership. Employment in natural resources and mining is primarily outside the Brookings-Harbor area. The employment footprint of educational services, construction, financial activities, other services, and information are more or less comparable between the Brookings-Harbor area and the rest of the county.

Looking at local employment patterns may help employers and community planners understand their strengths and areas of potential opportunity. The county and area reliance on leisure and hospitality, retail trade, and retirement-related services (often health-care based) provides many entry-level employment opportunities as well as some career possibilities. As the state’s and nation’s economies ebb and flow, affecting the level of people’s discretionary income, both Brookings-Harbor and the county’s ability to draw visitors and new residents creates more questions than answers.

Southern Oregon Business Journal

Survey: Most Businesses Don’t Expect 2019 Recession 76 Percent Don’t Expect Recession Over Coming Year Job Market, Wage Growth Are Positive Signs Stoller: Economy Begins 2019 “On Strong Footing” OKLAHOMA CITY, Dec. 27, 2018 – At year end, businesses have confidence in the economy, with most predicting no recession in 2019. In the December survey of 445 businesses, only 1 percent of respondents expect a recession in the next three months, while 8 percent expect one in three to six months. Less than one-quarter (24 percent) believe a recession will arrive in the second half of the year. While media predictions of a recession have increased in recent months, signs of a strong economy abound:

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Unemployment is near record lows at 3.7 percent.

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Real GDP increased 4.3 percent in the third quarter.

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Express Employment Professionals has 16,500 open positions to fill.

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There are more than 7 million job openings across the United States.

Express experts expect steady growth in 2019. Janis Petrini, an Express

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Employment Professionals franchise owner in Grand Rapids, Michigan, says fears of a recession are overblown. “The outlook is very similar to what we expected in 2018,” she said. “Growth and demand continue to remain strong. There is a significant amount of ‘talk’ around a recession or adjustment, but this mostly seems media driven as opposed to hard facts and actual experts within individual industries. Most clients see their own industry remaining strong. There may be some slowdown in the automotive sector, but this will be more of the industry returning to normal as opposed to receding.” Over in Illinois, Terri Greeno, an Express franchise owner in Crystal Lake, notes that “2018 felt hotter” but that she still sees a “steady, slight uptick after the first quarter.” “I know some people are uneasy at the end of 2018,” said Bill Stoller, CEO of Express. “But when you look at the big picture, the American economy will begin 2019 on a strong footing. Even with such low unemployment, we have an abundance of jobs to fill, and wages have been on the rise.

Clearly there are concerns about what may happen toward the end of 2019, and there are always external forces beyond our control. For now, though, I’m predicting a happy economic new year.” The survey of 445 businesses, which are current and former clients of Express Employment Professionals, was conducted in December 2018 to gauge respondents' expectations for 2019.

*** If you would like to arrange for an interview with Bill Stoller to discuss this topic, please contact Sheena Karami, Director of Corporate Communications and PR, at (405) 717-5966.

About Bill Stoller: William H. “Bill” Stoller is chairman and chief executive officer of Express Employment Professionals. Headquartered in Oklahoma City, the international staffing company has more than 800 franchises in the U.S., Canada and South Africa. Since its inception, Express has put more than 6 million people to work worldwide. About Express Employment Professionals: Express Employment Professionals puts people to work. It generated $3.4 billion in sales and employed a record 540,000 people in 2017. Its long-term goal is to put a million people to work annually. For more information, visit ExpressPros.com.

Southern Oregon Business Journal

Chamber announces Excellence in Education awards

COOS BAY, OR – The Bay Area Chamber of Commerce believes that great education and a great economy go hand in hand. Thriving businesses support a healthy education, and graduates who are ready for work or college strengthen our local businesses and community. The Chamber has a goal of building bridges between business and education throughout the Bay Area. To that end, the Chamber hands out three awards annually, open to educators from pre‐school to college, in public, private and alternative settings.

This year’s awards are: Innovation in Teaching -- Stephanie Howe, Marshfield High School Stephanie Howe came to Marshfield High School in 2012 as a 10-grade English teacher and hit the ground running. Catherine Hampton, a former Chamber education winner, stated: “I have watched

Stephanie over the past few years build a strong award-winning yearbook program even though she had no previous experience. Not only is she highly respected by her students, but she is also an excellent leader among her peers as the department chair of the English Department. She is very intelligent, motivated and organized in all she does and an all-around amazing educator.” Contributor to Education – Bill Berrian, North Bend School District

Bill Berrian is a counselor and supporter of students daily. While completing arduous numbers of psychoeducational evaluations, Bill maintains a positive attitude and performs all tasks with grace, compassion and the highest of ethics.

“Bill has a knack for leading student teams to student focused decisions and helps teams problem solve mental health issues, behavior concerns, and learning problems. He treats everyone with dignity and respect; he follows all moral and ethical expectations of his role. Countless students have been successful graduates due to their relationship with Bill or due to the assessments/work he has done in their behalf. “ Unsung Hero – Nicole Ault, Blossom Gulch Elementary School Nicole Ault is a first-grade teacher who loves her students not just for a school year, but throughout their educational journey. She has been known to go to events and graduations of her former students, to remind them of how proud she is to have known them and taught them. Ault is known to spend her own money on school supplies and ensures no student goes without. Her love for education shines through each day she works. Blossom Gulch Assistant Principal Kara Davidson said, “Nicole is a dedicated teacher who is

driven by her desire to constantly meet the everchanging needs of all of her students” From these three honorees, the Chamber will select its Bay Area Educator of the Year, to be announced at the Chamber’s annual awards banquet on Saturday, Jan. 26 For more information, or to reserve banquet tickets, please contact: Bay Area Chamber of Commerce (541) 266-0868 info@oregonsbayarea.org

Allyson McNeill, special education director for North Bend School District, said this about Berrian:

Southern Oregon Business Journal

Strategy Map

Path to Prosperity Strategy is a tool whose purpose is the realization of leadership’s intentions. Having a Strategy is good. However, a strategy created and placed on the shelf until the next planning cycle is simply a waste of time. To have value, strategy must be operationalized throughout the enterprise. There is an old saying “Strategy without Tactics is a

Daydream, Tactics without Strategy is a Nightmare”.

A Strategy Map (1) is one path to achieve strategic goals. The strategy map focuses attention on the creation, measurement and review of objectives in light of leadership intent within the context and capabilities of the business. It maps out a plan starting with your team (People) and works its way through systems and processes (Process) to your customer (Purpose) and the resulting achievement of goals (Payoff). There are variations on this theme, but this is the basic outline. Let’s look at the Four Perspectives found in a Strategy Map and understand how they support each other.

People: Learning and Development Within any business, the primary asset is the team. Without people, there is no purpose, no products, and no payoff. From the Learning and Development perspective, we focus on identifying skills, obtaining talent, creating abilities and building the knowledge

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base and attitudes required to support business systems and improve processes. Expectations, when properly developed, allow people to deliver. Expectations coupled with a performance feedback loop sets people up to excel. A trained and prepared team enables the business to maximize the potential found in business systems and processes. Process: Systems and Processes A business delivers value within the context of a structure. From the Systems and Process perspective, we address both the systems that enable processes and the processes that enable people to create value. Systems are the means used to control processes. Processes are the means used to accomplish work. Effective systems support business capabilities and create an environment for team members to deploy their abilities and deliver to customers. Broken systems will defeat good people and efficient processes every time. Using effective systems and efficient

processes, your team serves customers with the least amount of waste. Purpose: Service and Product delivery to the

Customer

At the core of every business is the concept of

service. From a Customer perspective, products are only part of a larger picture; other aspects of the value proposition include communication, relationships, on-time delivery, quality, and flexibility. Taken as a whole, the customer buys potential but pays for value. Understanding business purpose, capabilities and the value provided to customers allows for goal prioritization and a focused emphasis. People first, operating within the context of a structure of systems and processes allows for the delivery of value to the customer. Payoff: Performance Measures and Goals The Payoff enables the existence of the business. With a balanced approach, we have strategic goals, initiatives and measures at each perspective ultimately supporting the delivery of value and attainment of goals. The focusing of integrated activities to prepare people, develop systems and improve processes in order to serve customers results in the effective use of resources and the coordinated achievement of goals. Each perspective supports the next perspective until finally the payoff is realized. Purpose and Strategy In the end, having goals, creating priorities and measuring progress is what counts. The Strategy Map is one tool that enables Operational Art (2) within the enterprise. Operational Art is the purposeful translation of strategic goals into a coherent series of tactical missions. With a

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Strategy Map and the application of Operational Art, your strategy can become the path to prosperity. (1)

See Kaplan and Norton “The Execution Premium: Linking Strategy to Operations for Competitive Advantage”

(2)

Operation Art is a PRAXIS ANALYTICS CORE METHODOLOGY centered on translating strategic goals into a coherent series of tactical missions

Jim Myers is the principal and founder of Praxis Analytics, Incorporated. Jim serves as a trusted advisor to business leaders in their quest to operate efficiently, improve continuously and prosper. His background includes two decades working in manufacturing, supply chain, customer service and maintenance management roles within markets that range from capital equipment to aerospace and defense. Jim balanced his practical operations experience with theory and served as the Associate Dean of the Atkinson Graduate School of Management (AGSM) at Willamette University where he led projects to improve school operations and taught graduate courses in Operations and Information Management, Strategy Alignment and Project Management. Early in his career, Jim served in the USMC and credits the big green machine with teaching him the value of leadership, teamwork, quality people, good systems and how to accomplish goals in a resource-constrained environment. He can be reached at jim@praxisanalyticsinc.com © 2019 Praxis Analytics, Inc. All Rights Reserved. 19023 PA SOBJ Strategy Map Article r2.doc

Women Entrepreneurs of Southern Oregon (WESO) Empowers "Shop Local" Businesses at March 9th Entrepreneur Expo Check out our mission! Women Entrepreneurs of Southern Oregon (WESO) is a community of dynamic entrepreneurs helping each other achieve business goals through networking, education, and inspiration.

So, how does WESO achieve these goals? WESO is a membership organization that has been a part of the Rogue Valley for almost 40 years. They began in 1980 as a chapter of a statewide women entrepreneurs organization. At that time, it was particularly essential for women business owners to band together to show that they have the talents and drive to succeed. In 2001, they separated from the statewide group and formed their own nonprofit organization to support women-owned businesses in the Rogue Valley and other parts of Southern Oregon and Northern California. In 2019, they continue to help members improve their savvy and promote their businesses through their member services, outreach, and networking. Currently, WESO is focusing on their 17th annual Entrepreneur Expo on Saturday, which will be held on March 9th from 12 to 4PM at the Inn at the Commons (200 N. Riverside Dr., Medford). The Expo is a combination trade show and networking event that welcomes the public and local business owners. WESO has grown this annual event every year because they have found that women want to support each other and seek out women-owned businesses in our area. WESO members showcase their businesses at reduced exhibitor rates. Nonmembers can also be vendors and may choose to join WESO at a special Expo vendor rate. Each year, the event features approximately 65-70 vendors and draws large crowds of attendees who enjoy the many door prizes, raffles, and local shopping opportunities In addition to the Expo, WESO offers members year-round opportunities to grow their businesses. Monthly meetings feature guest speakers who present programs specifically designed to inform, educate, and inspire business owners. Recent meetings included topics such as:

The Psychology of Social: Creating Content that Gets Likes and Shares, with Rachel Koning  Last Chance on Your End-Of-Year Tax Planning: Are You Ready? with Jackie Truax  Discover Your Divine Sales Blueprint: Strategies that Feed Your Soul and Make Money, with Diahana 

Barnes 

The Power of Mindfulness: Paying Attention Can Change Your Life and Business, with Kristen Stroud, M.A.

Members enjoy a reduced meeting cost and can introduce themselves to the group with a "30-second commercial." New members may join as individuals or businesses. WESO welcomes guests, and nonmembers may attend up to three meetings before joining.

Southern Oregon Business Journal

Other ways WESO members may promote their businesses include being the Business Spotlight at monthly meetings, where members may share their business with a table display and the undivided attention of the group. Members may also promote their businesses through an extensive online business listing, and reserve Business of the Month ads on our website and in emails. WESO members are also generously helpful with advice and support for each other. One way they do this is through Success Circle meetings. These are peer mentoring groups that provide support and practical suggestions for business improvement. Success Circle meetings are free and open to both members and nonmembers as part of WESO's outreach effort. Women business owners are encouraged to explore new ideas or seek suggestions or support from other entrepreneurs. Check out the Upcoming Events page on the website for more info on the next Success Circle meeting: wesoweb.org

As part of WESO's commitment to women's needs, WESO sponsors and funds the important services provided by the Community Works â&#x20AC;&#x201C; Dunn House Women's Shelter which provides a safe refuge and support services for women and children to help them escape from domestic or sexual abuse, stalking, trafficking and date violence. Women with or without children who are in fear from their intimate partner or family member may need to stay in a safe place while figuring out a longer term plan for safety, or have time to rest and learn about options. Dunn House Shelter is a large home where several families reside. Food, clothing, and personal care items are provided and the services are free and confidential. Children at Dunn House Shelter have a safe place to play, to spend time with their mothers and to be involved in age appropriate activities. Advocates work with families to provide information, referrals to community services, and needed support. WESO collects donations for Dunn House and sponsors raffle baskets at the annual Entrepreneur Expo to raise funds for Dunn House. A key element of WESO is that they are managed totally by volunteers. They have no paid staff and are staffed by a board of directors and other volunteer members This keeps costs low and provides great opportunities for members to become involved in leadership positions.

Southern Oregon Business Journal

The current board members (who also manage local businesses) include:

Alexis McKenna, Program Director (Coming Home, LLC)

Mary Fitzsimmons, President (Rogue Valley Tutoring Center)

Diane West, Website Administrator (West Design)

Joyce Crain, Vice President (Office Support Solutions & Creative Unique Gifts)

Cathie Izor, Website Assistant and Archivist

Jim Ward, Assistant Vice President (Medford Pet Butler) Debbie Hodgson, Secretary (Infinity Insurance Solutions) Laurie Neff, Treasurer (Bookkeeping for Small Business and Seniors) Lisa Schweickert, Expo Director (Customer Services Specialist) Cat Carroll, Venue Coordinator and Marketing Team Member (CBD for People & their Pets) Jenai May, Marketing Team Leader (Silver Rockets Web & Graphic Design)

WESO is an effective way to build your business and support other local entrepreneurs. Contact Information Women Entrepreneurs of Southern Oregon (WESO) Address: PO Box 1662, Medford OR 97501 Website: wesoweb.org Email Address: president@wesoweb.org Lisa Schweickert Client Services Consultant WESO Expo Director 530.356.1073 lisaschwk@gmail.com LinkedIn * WESO

Brenda Walleman, Membership Director (Sound Music Therapy, LLC.)

Southern Oregon Business Journal

OPPORTUNITY ZONES: WALK, DON'T RUN Opportunity Zones: Walk, Don’t Run Opportunity zones have become a trending topic in financial circles of late and we are taking a “walk, don’t run” approach when reviewing the space. What Is an Opportunity Zone? For years, legislators have tried different programs to encourage economic development in economically distressed communities. The Tax Cut and Jobs Act of 2017 established such a program, giving preferential tax treatment to investments made in qualified opportunity zones. State governors were given the power to identify low-income census tracts to be qualified resulting in 8,700 zones across the country. Due to differing political, social and economic ideologies, selection of these zones varies widely between states. Opportunity Zone Triple-Threat Tax Benefit? The benefits from an opportunity zone fund starts with the realization of a gain in any capital asset. Some describe the benefits as a kind of 1031 exchange “on steroids” since the benefit extends to gains more than real estate. You can roll gains from stocks or other investments forward into the fund. The investment made in the opportunity zone fund benefits from three preferential tax treatments as defined below. 1) Deferral of Gains: If the gain is invested in an opportunity zone fund within 180 days, the tax due on those gains is deferred until December 31, 2026. 2) Step-Up in Basis: If the opportunity zone investment is held for five years, the investor gets a 10 percent step-up in basis on the original gain. Holding it for another two years (seven in total) earns the investor another 5 percent step-up for 15 percent total. 3) Zero Capital Gains: If the opportunity zone investment is held for more than 10 years, no capital gains are paid on the

Southern Oregon Business Journal

by Timothy D. Carkin, CAIA, CMT Senior Vice President

appreciation of the opportunity zone investment. This benefit extends to 2047. Walking, Not Running There are a few factors we consider that lead to our measured approach when reviewing opportunity zone funds for our clients. First among them, the rules have not all been written. Though opportunity zones were established in 2017 by way of legislation it was done in very broad strokes and many key aspects were left up to the interpretation of the Treasury Department and the Internal Revenue Service. It takes time to review and opine on the minutia of the tax code … and then the government shutdown ground that work to a halt. As a result, many large managers in the real estate space have waited for finalization of the tax code to enter the arena. Another aspect we look at is “dumb money.” It is estimated that more than $13 billion will be raised in opportunity zone funds in the first half of this year. That is a lot of money that needs to be put into qualified projects in a short amount of time. This may cause a bubble in the pricing of “shovel-ready” projects in qualified opportunity zones. Deals that have marginal investment merit become attractive to large syndicators raising huge funds. In this case, “dumb money” refers to those managers who let the need to put capital to work outweigh their investment discipline. Lastly, investing in an opportunity zone fund is a long-term commitment to developmental real estate. The tax benefit is an alluring idea, but the fundamental investment will be the definition of success and failure. We are reviewing myriad opportunities in the qualified opportunity zone space with a measured approach. https://www.fergusonwellman.com/blog/2019/1/25/ opportunity-zones-walk-dont-run

CLAIM YOUR SHARE OF 705 MILLION IN FLORENCE Posted by Bettina Hannigan

Last year, nationally, more than half of American workers left 705 million vacation days unused—up from 662 in 2017. Nearly 10,000 of those days were left on the table by Oregonians. That’s why the Florence Area Chamber of Commerce is participating in National Plan Your Vacation Day on January 29. The event, promoted by The U.S. Travel Association, encourages everyone to take 30 minutes early in the year to plan a vacation. “It is proven that those that take vacation time are happier, healthier, and more productive,” says Bettina Hannigan, executive director of the Florence Area Chamber of Commerce. “Vacation is essential to strengthen personal relationships, inspire creative thinking, improve professional performance and promote better health—and Florence should be at the top of your list of vacation destinations for many reasons. “And we think there is no better place than right here in Florence—Oregon’s Coastal Playground.” Research shows that individuals who plan are more likely to use all of their time off, take more vacation days at once, and report greater levels of happiness at work and at home. “Our visitors, and locals too, enjoy the dunes for ATVs, sand rails, sandboarding, and hiking. They love that we have more than a dozen lakes within a dozen miles of town, as well as the Siuslaw River and the ocean. There’s fishing, crabbing, and clamming. Southern Oregon Business Journal

There’s about 20 miles of uncrowded beaches for sandcastles, kite flying, beachcombing, horseback riding, and romantic sunset strolls. We have museums, art galleries, quaint-but-not commercial shops, world-class entertainment at two venues, and about three dozen restaurants,” boasts Hannigan. Florence is home to internationally-known destinations such as the Oregon Dunes National Recreation Area, Sea Lion Caves, and Sand Master Park. The town was rated the number-two best small town in the Northwest, and the number-two small town in America for adventure by USA Today. It also garnered Expedia.com’s most beautiful town, Oregonian readers’ favorite coastal getaway, and one of Flight.com’s “8 Coolest Cities You Must Experience for Yourself.” “There’s a reason we’re known as Oregon’s Coastal Playground,” says Hannigan. “It’s time for people to leave “work martyrdom” behind and reclaim their hard-earned share of those 705 million unused vacation days. By planning, we can all reap the benefits of taking a break and give ourselves something to look forward to.” “But if that’s not enough, The Florence Visitor’s Center has lots and lots of ideas for how you can spend those precious vacation days,” she adds. “We’ve got a great Florencearea visitor’s guide and information on all the great places to shop, eat, stay, and play. We’ll mail it free to anyone who can’t stop by the office. You can also plan a truly epic vacation at FlorenceChamber.com.” 290 Hwy 101 Florence, OR 97439 30

Rogue Valley 2018 Labor Force and Job Growth Review by Guy Tauer From the 30,000 foot view of our job and labor market, 2018 will go down as another year in the Rogue Valley’s long recovery from the Great Recession that saw continued job growth, low unemployment rates, and continued, but slowing expansion of the region’s civilian labor force. Jackson County’s annual average unemployment rate in 2018 marched to record low of 4.7 percent, essentially unchanged from 4.7 percent in 2017. Josephine County’s 2018 annual average unemployment rate was slightly higher at 5.4 percent, tying the prior year’s record low rate going back to 1990. The Rogue Valley’s unemployment rate has been trending downward since the last peak in 2009. The civilian labor force – those who are 16 and older, who are either employed or looked for work within the past 30 days – continued to grow in 2018 in both Jackson and Josephine counties. Both counties saw a slower rate of growth in their labor force than the prior year. In Josephine County, the labor force increased by just over 1,000 in 2016 and 2017, or 1.1 percent gains both years. In 2018, the labor force rose by 0.4 percent, or an increase of about 400. After reaching a pre-recession peak of about 35,300 in 2009, the civilian labor force fell to low of 32,200 in 2013. By 2018, the labor force attained a new peak of about 35,800, or an increase of 11.2 percent from the Great Recession trough.

Southern Oregon Business Journal

Jackson County’s labor force growth has been slowing for the past few years, too. In 2016, the labor force rose briskly, increasing by 3,440 or 3.5 percent over the year. The following year the growth rate softened to 2.4 percent, or about a 2,500-person increase in the civilian labor force. In 2018, the county’s labor force rose by 1.4 percent, or a gain of 1,435. After climbing to its pre-recession peak of about 102,300 in 2009, the civilian labor force fell to low of 95,941 in 2013. By 2018, the labor force attained a new peak of about 105,400, or an increase of 10.2 percent from the trough brought on by the Great Recession. The Rogue Valley’s population growth rate also slowed in 2018, so it’s not surprising to see a cooling trend in labor force growth rates. A tight housing market and low vacancy rates for rental units could be one factor in the slower rate of population and labor force growth in 2018.

Payroll Employment Trends Through 2018 Another high-level view of job market trends in 2018 is total nonfarm payroll employment growth rates. In Jackson County, total payroll employment declined from 2008 through 2011, as the Great Recession wreaked havoc on our economy and job market. Job growth finally returned with a 1.4 percent gain in 2012. The next couple years saw job growth of 2.4 percent and 2.3 percent, respectively. The job machine cranked up the next couple years with over 2,500 new jobs added and 3.3 percent growth in 2015 and 2016. In 2017 and 2018, Jackson County’s annual average job growth moderated back to 2.4 percent, just above the statewide growth rates of 2.2 percent and 2.0 percent during the past two years. Josephine County was hit a bit harder during the downturn, losing jobs in five out of six years between 2007

Southern Oregon Business Journal

and 2012. Since then, Josephine County has recovered all the jobs lost during that long downturn and is now about 1,000 payroll jobs above the previous pre-recession peak reached in 2006. Josephine County’s job growth rate in 2017 (3.0%) and 2018 (3.3%) outpaced both neighboring Jackson County and statewide job growth rates.

It’s not unexpected to see labor force and job growth rates begin to slow as the current economic expansion ages. But the question going forward is are we heading into a more prolonged and sustainable pace of job growth, sort of a “soft-landing” from the faster job growth rates seen a few years ago? Or are we now poised to see job growth soften even further and possibly turn negative once again if another recession occurs. Stay tuned. There’s never a dull moment, whichever direction the economy may be turning.

Guy Tauer Regional Economist, Jackson, and Josephine counties

Southern Oregon Business Journal

Southern Oregon Business Journal 703 Divot Loop Sutherlin, OR 97479

ANTELOPE BRIDGE / COVERED BRIDGE PARK Found in the center of Eagle Point the Antelope Creek Bridge is a 54 foot covered bridge crossing over Little Butte Creek. It is one of only 50 covered bridges built in Oregon that was built to handle vehicles. It is now used as a foot bridge and is also the location of the veteran's memorial rocks that are dedicated to each of the major wars. https://www.southernoregon.org/eagle-point-small-community-big-heart/