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December 2009 Newsletter

Top Stories
1. From the chair: Kicker reform needed

2. Oregon economists oppose 2009 Legislature's permanent tax increases
3. Alliance members help Marysville Elementary School
4. Oregon economist, Tim Duy, to present at Westside Economic event
5. Leadership Portland application available now!

Public Policy
6. Land use and economic growth: Two coalitions are in development

7. lliance Urban Renewal Task Force recommends new downtown URA

Downtown
8. Pop-up shops successful for artists and downtown
9. New Resource Access Center breaks ground in Old Town

10. Downtown Holiday Activities

Membership
11. Members kick off holiday season at Alliance Open House
12. December Forum addresses the 2010 economy
13. Membership survey coming in January

Member News
14. United Streetcar president participates in President Obama's Jobs Summit

15. Portland Community College announces second year of scholarship matching
16. American Red Cross launches new holiday giving campaign
17. ESCO Engineered Products Group establishes presence in Australia

18. Regence Foundation awards Pacific University diabetes clinic $94,000

19. The Regional Arts and Cultural Council to help artists in 2010
20. American Red Cross can help answer questions about the new AED law

21. Upcoming meetings


FROM THE CHAIR

1. Kicker reform needed

By Charles Wilhoite, Chair,
Alliance Board of Directors

Recently, Debbie Kitchen, the chair of the Alliance's Small Business Council wrote an opinion piece agreeing with a position taken by The Oregonian's editorial board on the need for reforming the state's kicker. Her piece was published in The Oregonian, and I would like to share it with you as this month's column.

Oregon's kicker law: The Legislature got it wrong again
The Oregonian's editorial last week (Kicking and screaming, California here we come - November 13, 2009) about the need to reform Oregon's uniquely peculiar kicker law couldn't have been more right. And it underscored, yet again, why the Legislature couldn't have been more wrong when it balanced the state's budget on the back of Oregon's taxpayers in this last session.

The sorry truth is that the state's major business organizations have long asked the Legislature to reform our antiquated kicker law. In 2007, businesses voluntarily agreed to give up more than $300 million in corporate kicker money in order to create Oregon's first ever general "Rainy Day" savings account. And in 2009, they begged the Legislature to permanently fund that savings account by restructuring both the corporate and personal kickers and investing in the Rainy Day Fund.

The Legislature ignored not only the pleas of business for kicker reform, but also recommendations from a nonpartisan panel, created in 2007 by the legislature and appointed by Governor Ted Kulongoski. After studying Oregon's revenue system carefully, that panel found that our dependence on income taxes makes Oregon uniquely vulnerable to swings in the national economy.

Most impacted when state revenue swings occur, the panel found, are Oregon's public schools, which depend on the state for two-thirds of their funding. The panel urged the Governor and Legislature to fix this problem in part by putting a portion of the state's ending budget balances - money subject to the kicker - in a savings account so that our schools and other vital state programs can be held harmless when the economy turns south.

I am an economist by training, but it doesn't take a degree in economics to figure out that if your primary revenue source - income taxes - is inherently volatile, you need to be saving in the good times so that you can cover for revenue shortfalls in the bad times. When the Governor's Task Force on Comprehensive Revenue Restructuring recommended reforming the kicker to create a savings account last year, I thought it more than made sense. It was about time we did it.

What did our Legislature do? They ignored the advice of the nonpartisan experts on the Governor's committee and the pleas of the business community. Instead of taking the steps to add more stability to the state's revenue system, they made it more volatile by passing almost $1 billion in new personal and corporate taxes to balance a state budget that grows bigger and bigger.

It is hard to understand. My husband and I own a small general contracting business and, like many people, we have had to tighten our belt this last year. Business owners, like us, have worked hard to protect jobs, and that's why so many were taken aback when the Legislature chose to impose new, permanent taxes on Oregon companies - taxes that are sure to cost more Oregonians their jobs.

I find it hard to comprehend that they also refused to address the antiquated kicker law and fund a more robust savings account so that the future will be better for Oregonians. There has to be a better way.

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2. Oregon economists oppose 2009 Legislature's permanent tax increases

In January 2010, Oregonians will vote on two ballot measures. Measure 66 permanently increases personal income taxes. Measure 67 permanently increases corporate income taxes. Economists from across the state studied the measures and argue that the measures would further damage Oregon's economy.

Here is a list of economists that oppose the permanent tax measures.

  • Ralph Shaw
    Shaw Management Company*
    Former Chair, Governor's Council of Economic Advisors
    J.D.- New York University School of Law
  • Phillip Romero
    University of Oregon (currently on leave)*
    Former dean of the Lundquist College of Business
    Ph.D.- Rand Graduate School
  • Randall Pozdena
    Managing Director, ECONorthwest* Former Vice President of Research for the Federal Reserve Bank of San Francisco
    Ph.D.-University of California, Berkeley
    Author of The Modern Economics of Housing
  • John Mitchell
    M&H Economic Consultants*
    Former Chair, Oregon Council of Economic Advisors
    Former Chief Economist of U.S. Bancorp
    Ph.D.-University of Oregon
  • Gerard Mildner
    Portland State University*
    Ph.D.- New York University
  • Anthony Rufolo
    Portland State University*
    Former Senior Economist with the Federal Reserve Bank of Philadelphia
    Ph.D. - University of California at Los Angeles
  • Bill Conerly
    Conerly Consulting LLC*
    Author of Businomics
    Ph.D. - Duke University
  • Eric Fruits
    Economics International Corp.*
    Ph.D.-Claremont Graduate University
  • Kevin Kelly
    CEO and Owner of First Call Heating and Cooling*
    Former President and CEO of U.S. Bancorp
    Former Chief Economist of U.S. Bancorp
    Ph.D.-Lewis and Clark College
  • Zenon X. Zygmont
    Western Oregon University*
    Ph.D.-George Mason University
    Author of The Economics of Intercollegiate Sports

*Academic and business affiliations are for identification purposes only and do not reflect the position of university, academic department or business.

More information about the measures and their impact on Oregon's economy can be found at: www.stopjobkillingtaxes.com.

 

3. Alliance members help Marysville Elementary School

The Portland Business Alliance board of directors raised $29,000 for Portland's Marysville Elementary School, which was devastated by a fire last month. The school, which reopened at Rose City Park, is in need of many basic supplies.

Member companies like Nike and Powell's Books quickly led the charge to help Marysville recover. Nike donated backpacks and coats for every student, duffel bags and classroom supplies for teachers, sports equipment, welcome banners and food for staff. Powell's Books donated more than 1,000 books to the school. Hasson Company Realtors recently donated used office furniture.

The Alliance board encourages businesses and individuals to help Maryville Elementary by:

  • Contributing to Schoolhouse Supplies, a local nonprofit that is accepting cash and product donations for Marysville and other schools in need. To donate, go to Schoolhouse Supplies or call 503.249.9933.
  • Volunteering your time. Contact Andre Jackson at 503.916.3078 or ajackso2@pps.k12.or.us.

 

4. Oregon economist, Tim Duy, to present at Westside Economic event

University of Oregon economist, Tim Duy, completed a study with the Port of Portland last month, showing that industrial employment is vital for Oregon's economic recovery, and that manufacturing jobs contribute greatly to the economic health and prosperity of the region.

Duy will speak about his work and present his findings at the Westside Economic Alliance's monthly Breakfast Forum on December 18 from 7:30 - 9:00 a.m. Go online for details, www.westside-alliance.org.

 

5. Leadership Portland application available now!

Do something great for yourself and your community! Leadership Portland provides education, strategic relationship building opportunities, and the chance to strengthen your leadership skills. Interest in this unique program is growing, and enrollment is increasing so apply today! Applications for class of 2011 are now available and are due April 2010.

APPLY NOW >>

 

PUBLIC POLICY

6. Land use and economic growth: Two coalitions are in development

Many new policies that address land use and economic growth in the Portland region are currently in different stages of development. The Alliance is participating in a number of ways, and primary concerns are: maintaining land supply that will support job retention and growth, and ensuring land is well served by infrastructure. In November, the Portland Business Alliance weighed in on two issues relating to job growth and land supply by formally supporting the work of two coalitions. The first one focuses on land use decisions, called the Coalition for a Prosperous Region, and the second called the Working Waterfront Coalition, focuses on the city's River Plan.

Coalition for a Prosperous Region

Projections for the growth of our region show a dramatic increase in population in the coming decades. Therefore, it is vital that the region has available land and the necessary infrastructure to provide family-wage jobs and affordable housing for the region's current and future residents.

Currently, Metro, in coordination with Washington, Multnomah and Clackamas counties, is determining what land can be set aside for possible development in the next 50 years to accommodate the projected growth. These portions of land are called Urban and Rural Reserves.

Local governments must evaluate land by a set of specific criteria and designate a 40 - 50 year land supply of Urban and Rural Reserves, which will determine what portions of land are protected from urbanization and what portions are eligible for urban growth boundary expansions.

Part of that designation process includes Metro's Reserves Steering Committee (RSC), which consists of city officials, and representatives from business sectors, environmental conservation groups, and social and economic equity organizations. The RSC's task is to give direction to the study of prospective urban and rural reserves and advise the Metro Council and county commissions on the land being designated as urban or rural reserves.

To ensure future employment and housing was kept top of mind, the Alliance has been working with a coalition of businesses to advise the RSC's business members. The coalition recently branded itself as the Coalition for a Prosperous Region (CPR) and expanded its membership to include both business and labor organizations, including more than 20,000 union members of the Columbia Pacific Building Trades Council.

In addition to providing recommendations to the steering committee members, CPR will be working to communicate the need for suitable and flexible employment land options and infrastructure as well as affordable housing for future employees and their families. More information about CPR's efforts will be in future newsletters.

Working Waterfront Coalition

The Portland Business Alliance is supporting the Working Waterfront Coalition's current concerns about the city's River Plan. The Alliance will collaborate with the coalition on policies relating to transportation and freight mobility, harbor related employment land supply and regulatory framework that impacts the harbor economically.

The Alliance's concerns about the River Plan are:

  • The 15 percent landscape restoration requirement, which could result in the loss of jobs and economic activity in the city by removing productive harbor land.
  • It conflicts with current policy such as the city's Economic Development Plan and its goal of adding jobs in industrial areas such as the harbor.

7. Alliance Urban Renewal Task Force recommends new downtown URA

Discussions within the City of Portland are currently underway about the creation of a new Urban Renewal Area (URA), and what areas a new URA would include. Because health of the central city is important to the Alliance, an Urban Renewal Task Force was formed to study and recommend a new downtown urban renewal district. The board approved this new URA recommendation last month.

To help aid the Alliance's decision, the task force established a framework to guide decisions on whether, where and how urban renewal should be used. The framework's purpose is to promote economic development in the selected URA and includes six main points:

  • Criteria should precede the URA designation.
  • Property included in the URA should have specific characteristics.
  • URA-funded projects should result in specific public benefits.
  • URA expenditures should be tied to specific performance metrics.
  • Firm sunset dates should be established and observed.
  • Overlapping taxing jurisdictions should be at the table when urban renewal areas are created and when performance metrics are established.

It is the URA Task Force's goal that future recommendations for any URA would be subject to the same framework. If you are interested in learning more about the URA process and criteria, please contact Carly Riter at criter@portlandalliance.com.

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DOWNTOWN SERVICES

8. Pop-up shops successful for artists and downtown

Four pop-up shops opened in November, as a result of Mayor Sam Adams' Downtown Retail Strategy. The pop-ups support local artists and designers and activate vacant retail spaces for enhanced downtown holiday shopping. All of the shops have active elements with artists designing and creating right in the space.

The pop-up shops are free to the artists, thanks to a public-private partnership that includes the Portland Business Alliance, City of Portland, Portland Development Commission, Downtown Retail Advocate, Downtown Marketing Initiative, Downtown Development Company, Tad Savinar and Vizwerks. The partners came together to enhance the signature retail district along Yamhill and Morrison for the holiday season by providing unique, local gift items. So far the pop-ups have been successful and received a lot of positive attention from the press and the community.

Find some unique gifts for friends and families at:

Workroom 719

  • Showcasing artwork, clothing, jewelry and accessories from six artists.
  • Watch the artists design and create their merchandise.
  • Located at 719 SW Morrison St. (formerly See's Candies space)

Flurry

  • Showcasing jewelry and clothing for men and women from multiple designers.
  • Presented by Portland Fashion Synergy
  • Located at 401 SW Morrison St. (formerly Shoe Pavilion space)

Egg Press

  • Showcasing handcrafted letterpress greeting cards.
  • Active elements include Letter Writing Happy Hours, screen printing, and printing press demonstrations
  • Located at 625 SW 4th Avenue.

By Oregon

  • Showcasing clothing, jewelry and photography from more than
    15 Portland artists and designers.
  • Located at 902 SW Morrison.

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9. New Resource Access Center breaks ground in Old Town

Groundbreaking for the new Resource Access Center (RAC) took place on Friday, November 20 on the corner of NW Broadway and NW Hoyt St. Once finished, the RAC will provide a multitude of services for homeless people and people transitioning out of homelessness.

The RAC is a result of years of planning by the City of Portland, the Portland Development Commission (PDC), the Housing Authority of Portland, and Transition Projects. Scott Andrews, former Portland Business Alliance Chair and current PDC Chair, has been instrumental in securing funding for the project.

The Portland Business Alliance was also a partner in helping to site and fund the project. Additionally, the Alliance helped in the designing process to ensure the new RAC provides as many services and housing options as possible.

The RAC will include these elements:

  • 90,000-square feet of ground floor space for assistance services, meeting and classrooms and other necessities such as showers, restrooms, lockers and laundry facilities.
  • Internet access for job and housing searches, and an address people can give to prospective employers.
  • An internal waiting area, off the street and out of the elements.
  • A men's transition shelter with 90 beds for temporary use, including space for sleeping, eating and other services.
  • Approximately 130 units of affordable rental housing.
  • Street-level retail space.
  • Transition Projects Inc.'s administrative offices.
The RAC is scheduled to be finished in February 2011. For more on the Groundbreaking, click here. For more info on the RAC, click here.

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10. Downtown Holiday Activities

Throughout December, holiday festivities will abound downtown. Each day will be bright and cheery, with enhanced tree lighting and additional trees lining Yamhill and Morrison. Buskers (street performers) will surprise and delight with music and performing arts such as juggling and stilt walking. The buskers will be located along Yamhill and Morrison at Fifth, Sixth and Broadway avenues, Thursday through Saturday for the afternoon hours. Here is a list of downtown holiday festivities you won't want to miss!

  • 12/8 - 12/11 Holiday Artisan Market
  • 12/11 Lighting of the Menorah at Pioneer Courthouse Square
  • 12/12 Tuba Christmas

MEMBERSHIP SERVICES

11. Members kick off holiday season at Alliance Open House

The Alliance's Annual Open House took place on Friday, December 4. More than 180 people checked out the new office, met Alliance board members and networked with each other. Bastas Trattoria provided delicious appetizers enjoyed by all. Thank you, Bastas!

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12. December Forum addresses the 2010 economy

December 9
7:30 am to 8:45 am
Governor Hotel, 614 SW 11th Avenue

Leading economist, John Mitchell, will speak about managing the economic crisis in the coming year. He will discuss prospects, risks and opportunities and provide his outlook on the 2010 economy.

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13. Membership survey coming in January

The Alliance's will conduct the annual member survey in January. The member feedback the Alliance receives through this survey is critical to making improvements in its events programming, communications content and advocacy efforts. Alliance members have contributed greatly to making the survey shorter and better so watch for it in January!

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MEMBER NEWS

14. United Streetcar president participates in President Obama's Jobs Summit

Chandra Brown, president of United Streetcar, received an invitation from the White House to attend President Obama's Job Summit in Washington, D.C. on December 3. Congressman Blumenauer recommended to the White House that Brown attend the summit because United Streetcar will build the cars for the Portland streetcar loop project, which is estimated to create 1,500 jobs. Additionally, United Streetcar is credited for building the first American made Streetcar in 58 years. For more on United Streetcar, click here.

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15. Portland Community College announces second year of scholarship matching

Last year, PCC raised $320,000 for scholarships and The Miller Foundation matched that amount. This year the program will be continued. PCC enrollment is up this year, and applications for financial aid are up 35 percent, as people go back to school to gain new skills and knowledge. Help PCC get this scholarship funding again this year! If you would like to participate in the match, you can give online at www.pcc.edu/give, or call 503.977.4382.

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16. American Red Cross launches new holiday giving campaign

In a recent national survey, the American Red Cross found that although many people have been hit hard by economic difficulties, 67 percent say that because of the economy, it is more important than ever to give something to charity this year. 'Gifts that Save the Day' is a new holiday giving campaign that inspires people to give a gift that can save the day for those in need. View the online catalog here.

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17. ESCO Engineered Products Group establishes presence in Australia

On November 9, ESCO launched its first Australian entity, ESCO Holdings PTY Ltd. Johan Nienaber will be the company's first official employee in Australia. The move supports ESCO's global growth initiatives, with an emphasis on customer service and meeting the needs of the region. For more info, click here.

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18. Regence Foundation awards Pacific University diabetes clinic $94,000

The new clinic will serve anyone with diabetes, with a focus on breaking down barriers to health care in Latino and other underserved communities. The grant was announced during a check presentation ceremony at Regence BlueCross BlueShield of Oregon's Portland branch on November 30. The clinic is scheduled to open in Hillsboro next spring. For more on the grant and Pacific University, click here.

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19. The Regional Arts and Cultural Council to help artists in 2010

Professional development workshops for artists will be offered by the Regional Arts and Cultural Council (RACC) from January to June of next year. Qualified specialists and RACC staff will lead workshops in marketing, grant writing, legal issues, public art and new media formatting. Workshops are designed to provide inexpensive learning opportunities for artists to become more successful. For more info, and to register, visit www.racc.org/workshops.

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20. American Red Cross can help answer questions about the new AED law

Buildings in Oregon that are larger than 50,000 square feet and have more than 25 visitors per day must have at least one Automated External Defibrillator (AED) on premises starting January 1, 2010. The American Red Cross Oregon Chapter can help answer questions about the new law. Additionally, the Red Cross sells AEDs and provides training and maintenance for the machines. For more information, visit www.oregonredcross.org/AED or call 503.528.5629.

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21. Upcoming Meetings

December 9, Sustainability Committee, 7:30 a.m.
December 11, President's Council, noon
December 15, Central City Standing Committee, noon

December 16, Small Business Council, 4 p.m.
January 27, Government Relations Committee, 4 p.m.

January 12, Communications Committee, 9:30 a.m.

January 12, Transportation Committee, noon

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Board Members Donating to Marysville School:

200 Market Building

Alaska Airlines

Ashforth Pacific

Bank of America

City Center Parking

ESCO

Intel

Kaiser Permanente

KeyBank

Legacy Health System

Nike

NW Natural

PCC Structurals

Perkins & Co.

Portland Business Alliance

Portland General Electric

Providence Health & Services

Regence

Stoel Rives

US Bank

Wells Fargo

Willamette Management Associates

Dennis and Diane Rawlinson