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One pleads guilty in Desert Sun mortgage fraud case Pension vote By Cindy Powers The Bulletin
A former Redmond resident pleaded guilty in federal court to bank fraud Thursday in connection with an alleged mortgage fraud and construction loan scam involving the formerly
Bend-based Desert Sun Development Inc. Along with his guilty plea, Michael A. Wilson, 58, filed a document in federal court admitting that he forged his wife’s signature and lied about his assets in 2007 to obtain and refinance
a $530,000 home loan. Wilson’s lawyer, Bill Sharp, declined to comment on the guilty plea. When he obtained the loans, Wilson was working as construction manager for the now-defunct Desert Sun Development. The company’s principals, Ty-
ler Fitzsimons and Shannon Egeland, along with 10 others, also are under federal indictments alleging they defrauded banks of about $19 million in commercial construction loans and lied on residential mortgage applications. See Desert / A7
When tilling the land isn’t enough, what can a farmer do? U.S. Census of Agriculture In 2007, the value of Deschutes County’s agricultural products sold ranked 30th out of 36 counties in Oregon, according to the census. Neighboring Jefferson County was ranked 21st, and Crook County was ranked 29th.
DESCHUTES COUNTY FARMING BY THE NUMBERS NUMBER OF FARMS 2002
2007
Percent change
1,632
1,405
-14%
ACRES OF LAND IN FARMS 2002
2007
Percent change
138,226
129,369
-6%
a short-term fix, local officials say But it does mean cities and schools will take a smaller budget hit in 2011 By Nick Budnick The Bulletin
SALEM — Local governments and school districts throughout Oregon will suffer a smaller blow to their 2011 budgets, thanks to a decision Friday by the board of the state pension fund. But most local officials reached about the decision said any savings from a smaller rate hike next year will end up being billed in future years to meet future pension obligations, meaning any benefit will be short term. The recession that hit in 2008 sucked about $19 billion out of the investment fund overseen by the Oregon Public Employees Retirement System board — or about 27 percent of its total value. This year the fund has rebounded somewhat but has a ways to go before it regains that lost value. To refill the fund, and make sure all pension obligations are covered, the board is poised to jack up the rates that public agencies pay to support PERS. That rate hike would have amounted to about $1.5 billion statewide in the 2011-13 biennium. Thanks to Friday’s vote, school districts and local governments are likely to see a smaller-thanexpected rate increase. That’s because of a change to an esoteric rule that limited the size of rate hikes as long as an employer’s obligations were at least 80 percent funded by its past contributions. Under the old rule, rate hikes for those employers were limited to an increase equal to 3 percent of payroll. However, an employer that was less than 80 percent funded faced a rate hike of 6 percent of payroll. See Pensions / A7
AVERAGE FARM SIZE, IN ACRES 2002 85
2007
Percent change
92
Pete Erickson / The Bulletin
+8%
Most farms – 906 – earned less than $5,000 in 2007. Only 91 farms earned $40,000 or more in 2007, although 34 brought in at least $100,000 and six brought in $500,000 or more, according to the 2007 U.S. Census of Agriculture. Source: U.S. Department of Agriculture.
Rex Barber Jr. has grown crops at Big Falls Ranch west of Terrebonne for about 25 years, but he is looking for other sources of income. Barber is one of a group of farmers and a few Deschutes County planning commissioners who say farming is no longer a viable way to earn a living in Deschutes County. They contend people who own farmland need more options to make money, such as selling off smaller parcels for hobby farms.
Some say the answer is to allow resorts and other development on Deschutes farmland, but not all agree
Andy Zeigert / The Bulletin
By Hillary Borrud The Bulletin
“I am still trying to break even, and I’m hoping this year that I do.” — Gigi Meyer, who owns Windflower Farm east of Bend and supports changes to land use rules that she says would make it easier to run successful farms
TERREBONNE — Farmers in Deschutes County say Rex Barber Jr.’s 1,000 irrigated acres along Lower Bridge Way is in the most productive agricultural area of the county. Barber has grown crops such as wheat, grass and alfalfa hay, garbanzo beans and occasionally peas for about 25 years at Big Falls Ranch, but he is also looking for other sources of income. He supports the loosening of state and county rules that restrict development of farmland, including county rules that prohibit destination resorts on irrigated agricultural land.
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zone where resorts are allowed. The county currently does not allow resorts on irrigated farmland, a rule that is stricter than state law, and Planning Commissioner Christen Brown recently wrote in a letter to the County Commission that “farms cannot be expected to stand alone as a source of family income in Deschutes County.” “Profitability is not expected,” Brown continued. “Alternative sources of farm income need to be encouraged.” The County Commission should discuss whether to relax the prohibition on resorts on irrigated farmland, Brown said. See Farms / A6
Jobless turn to family for help, frequently with complications By Michael Luo
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“Without irrigation, the soil would not be productive,” Barber said. “Our elevation is lower than any other area of the county, so we have a little longer growing season. But we still had a frost down here that killed some of our beans in June and had another frost in August that didn’t help either.” Some members of the Deschutes County Planning Commission share Barber’s view that it is difficult for people to support themselves solely on agriculture in Deschutes County, and land use rules are too strict. The county, which has sprouted more destination resorts than any other in the state, is in the midst of updating the
New York Times News Service
WARRENTON — After Jean Ley lost her job as a mental health counselor in June 2008, she quickly realized how limited her options were. She had little savings. Unemployment benefits were not going to be enough to pay her bills. She was at risk of losing her home here on the Oregon Coast. As a last resort, Ley, 62, turned to her family. Her older brothers conferred with her
son, Matt, and agreed that one of them would help pay her bills if needed. But the assistance proved more than temporary. A year and half later, her son’s regular payments covering her mortgage and occasional emergencies, like a car repair or arthritis medication, have proven to be her bulwark from economic catastrophe. “If my family weren’t able to help me out at this point, I wouldn’t have a home,”
she said. “And I would be struggling.” As joblessness persists, credit cards max out and the government’s safety net has grown thin, many Americans have turned to a patchwork quilt of family members and friends to stave off eviction, keep their electricity running or cover an unexpected medical bill. It is an underground banking system, complete with lenders and borrowers. See Lending / A6
In some cases, check the VIN Toyota halted sales and production of eight models — including its best-selling Camry and Corolla lines — while looks into sticky gas pedals that can cause vehicles to accelerate suddenly. Toyota models recalled for sticky accelerator pedals: • Certain 2009-10 RAV4s • Certain 2009-10 Corollas • 2009-10 Matrixes • 2005-10 Avalons • Certain 2007-10 Camrys • Certain 2010 Highlanders • 2007-10 Tundras • 2008-10 Sequoias The Associated Press Camry, RAV4, Corolla and Highlander vehicles with vehicle identification numbers that begin with “J” are not affected and will remain for sale. Highlander hybrids and Camry hybrids also are not affected by this action and will remain for sale. Sources: Toyota Motor Corp. and The Associated Press
Confusion, an apology as Toyota recalls grow By Walter Hamilton and Tiffany Hsu Los Angeles Times
Confusion abounded Friday as frustrated Toyota owners scrambled to figure out what to do with their recalled vehicles, and dealers rushed to assess the damage from the automaker’s decision to temporarily halt sales of vehicles with faulty gas pedals. Also Friday, the president of Toyota issued his first apology, telling a Japanese broadcaster that he was “extremely sorry” for the recalls. Toyota owners jammed the automaker’s phone lines while others drove to dealerships seeking refunds for newly purchased cars or immediate fixes for older models. “We’ve gotten everything from ‘I can never drive this thing again’ to ‘how fast can I get this fixed and can I pay you to get to the top of the line,’” said Marc Cannon, senior vice president of AutoNation Inc., which has seven Toyota dealerships in California. See Toyota / A7