Bulletin Daily Paper 11/20/10

Page 1

Cougars head to semis

Quilts for Kids 176 distributed in state

Mountain View beats Corvallis in quarterfinal thriller • SPORTS, D1

COMMUNITY, B1

WEATHER TODAY

SATURDAY

Mostly cloudy with isolated snow showers High 39, Low 20 Page C8

• November 20, 2010 50¢

Serving Central Oregon since 1903 www.bendbulletin.com

STATE BUDGET

Jeld-Wen sells resorts

Shortfall $300M more than projected

Klamath Falls-based Jeld-Wen announced Friday that it has sold Eagle Crest Resort near Redmond, Brasada Ranch in Powell Butte and Running Y Ranch in Klamath Falls to a new partnership comprising Northview Hotel Group, based in Westport, Conn., and San Francisco, and a subsidiary of funds managed by Los Angeles-based Oaktree Capital Management LP.

By Jordan Novet The Bulletin

Eagle Crest Resort Redmond

Brasada Ranch Running Y Ranch

By Nick Budnick

Klamath Falls

The Bulletin

SALEM — On Friday state economists presented a mixed message to lawmakers, warning them that recent news of a statewide jobs boost looks to be an anomaly, and the hoped-for recovery will show up later than expected. And while Oregon’s economy appears to have bottomed out, the state’s projected budget picture continues to worsen. “A return to the better is around the corner but (like) always, these recoveries have been very slow,” state Economist Tom Potiowsky told a joint meeting of the House and Senate finance committees. Bottom line: When lawmakers return to Salem for the 2011 session, they will need to fill a $3.5 billion gap between projected costs and revenue in the next two-year budget, up from the earlier projection of $3.2 billion.

Jeld-Wen finds a buyer for all 3 Oregon resorts

Greg Cross / The Bulletin

Jeld-Wen, the Klamath Fallsbased window and door manufacturer and resort owner, announced Friday the sale of its Oregon resorts to Northview Hotel Group and the privateequity firm Oaktree Capital Management LP.

Jeld-Wen’s three resorts — Eagle Crest near Redmond, Brasada Ranch in Powell Butte and Running Y Ranch in Klamath Falls — will become part of the Northview property lineup, and most current staffers at the communities will retain their positions. The deal also includes

Ridgewater, a gated residential community near Running Y. Terms of the deal, which was completed Friday afternoon, were not disclosed. “The (Eagle Crest) hotel itself has been a great product for a long, long time,” Northview partner Simon Hallgarten told The Bulletin late Friday. “It has

Who will foot the bill?

TOP NEWS INSIDE NATO: Countries agree on missile system, Page A2

SHOPPING SEASON

Small retailers develop their own holiday By Ylan Q. Mui The Washington Post

For years, small businesses have lived in the shadow of the sprawling malls and big-box stores that draw the deal-seeking masses in the frenzied shopping days after Thanksgiving. Now they are fighting back. This year will usher in the inaugural Small Business Saturday, staking a claim between the old standby Black Friday and its younger sibling Cyber Monday. The project is the brainchild of American Express’ small-business division, where executives said the most common concern they have heard from clients is lack of demand.

A ‘soft patch’ Potiowsky acknowledged that the potential for a second dip in the economy had grown since his last forecast in August, but said he remained confident that the economy had merely hit a “soft patch.” “We’re probably going to have to wait until we get into 2011 before we start to see some robust growth,” he added. In the short term, the news appeared good in the current 200911 budget, but only thanks to what Sen. Chris Telfer, R-Bend, called “accounting hocus pocus.” Specifically, a change in how the state collects money in withholding means that the current budget is projected to show a surplus of $62 million. The Department of Revenue is withholding more from people making under $50,000 a year. Had that change not taken place, the current budget would have lost about $40 million, necessitating new cuts to balance the budget. See Shortfall / A6

a very good meeting facility, one of the best in the area. … But the property itself is just a little tired.” His company, which is based in Westport, Conn., and San Francisco, plans to revitalize Eagle Crest as well as the other properties. See Jeld-Wen / A6

Help from Bloomberg

Andy Tullis / The Bulletin ile photo

City of Bend employees work to repair a water main pipe that burst causing damage to a nearby car and buildings along an alley between Northwest Kansas Avenue and Northwest Riverside Boulevard in Bend on Oct. 28.

Insurer: City is not liable for burst pipe damage By Nick Grube The Bulletin

When a nearly 100-year-old city water line burst at 3:15 a.m. in an alley in Bend’s Historic District on Oct. 28, it caused tens of thousands of dollars worth of damage to Nick Thompson’s newly remodeled home. The city’s insurance provider, CityCounty Insurance Services, denied his claims for damages. The insurance provider also denied the claims of other residents in the vicinity, and in a Nov. 4 letter told them that the city was not liable because it had “no expectation that the pipe might rupture” and there was “no evidence” of negligence in main-

taining the pipes. “We were very surprised,” City Manager Eric King said about the denial of the claims. “We definitely pushed back on the insurance company. We felt that it was within our policy. But, ultimately, the insurance company stood by their decision.” CityCounty Insurance Services was created by the League of Oregon Cities and the Association of Oregon Counties; it represents most municipalities in the state and over 50 percent of the counties. The city spends about $800,000 a year for its coverage through CityCounty Insurance Services. See Insurance / A6

“What we want to do is make sure that we do the right thing and help. The last thing we want to do is walk away and say it’s not our responsibility. We want to provide assistance. I mean, it was our infrastructure.” — Eric King, Bend city manager

“The number one issue facing small businesses is they don’t have enough people walking in their door,” said Rosa Sabater, senior vice president at AmEx. “That is something we can all help with.” The card issuer enlisted New York City Mayor Michael Bloomberg to launch the initiative earlier this month, and other cities have joined in the effort. Boston Mayor Thomas Menino this week pledged he would shop locally on that day. Even the mayor of Kennett, Mo., population 11,260, signed a proclamation declaring Nov. 27 Small Business Saturday. In Washington, American Express is working with the city’s tourism and marketing arm, Destination DC, to promote the effort. “They’re really the backbone of the community,” said Elliott Ferguson, head of Destination DC. “There’s a certain amount of pride when you are shopping and buying in our community.” See Saturday / A7

INDEX Abby

B2

Local

C1-8

Business

C3-5

Movies

B3

Classified

E1-4

Obituaries

C7

Comics

B4-5

Sudoku

B5

Community B1-6

Sports

D1-6

Crossword B5, E2

Stocks

C4-5

Editorial

C6

TV listings

B2

Horoscope

B5

Weather

C8

We use recycled newsprint The Bulletin An Independent Newspaper

MON-SAT

Vol. 107, No. 324, 78 pages, 7 sections

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Bill Gates urges school budget overhauls By Sam Dillon New York Times News Service

Bill Gates, the founder and former chairman of Microsoft, has made education-related philanthropy a major focus since stepping down from his day-to-day role in the company in 2008. His new area of interest: helping solve schools’ money problems. In a speech prepared for delivery Friday, Gates — who is gaining considerable clout in education circles — plans to urge the 50 state superintendents of education to take

difficult steps to restructure the nation’s public education budgets, which have come under severe pressure in the economic downturn.

‘Kicking a bee hive’ He suggests they end teacher pay increases based on seniority and on master’s degrees, which he says are unrelated to teachers’ ability to raise student achievement. Instead, he suggests rewarding the most effective teachers with higher pay for

taking on larger classes or teaching in needy schools. “Of course, restructuring pay systems is like kicking a beehive” — but restructure them anyway, Gates planned to tell the superintendents in his talk to the Council of Chief State School Officers, which opened a convention in Louisville, Ky., on Friday. “Rebuild the budget based on excellence,” Gates says. Teachers unions defend giving raises to teachers as they gain experience and higher education. See Gates / A7

Bill Gates, cochairman and trustee of the Bill and Melinda Gates Foundation, speaks at a health summit at the Washington Convention Center in Washington, D.C., on Tuesday. Olivier Douliery McClatchy-Tribune News Service


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