On May 18th through May 20th, KCEDA, along with other local and national sponsors, hosted the site selector conference, SiteLink, in Klamath Falls at the Running Y Ranch. The conference offered an intimate platform to interact, helping communities advance their economic position as recruitment targets by bringing together site selectors with EDO and state representatives to collaborate on area strategies. Attendees were able to sit in on presentations from the site selectors, each discussing their area of expertise by looking at previous experiences they had with projects, as well identifying upcoming market trends and their potential impacts. KCEDA members who were unable to attend the event may receive special access to these presentation slides, but to do so, you must please submit a request by contacting KCEDA staff by phone or by email: Andrew Stork (andrew@teamklamath.com) or Kara Gegner (kara@teamklamath.com).
For more information on the site selector’s visit, available just below is a link to Saturday’s (May 21st, 2016) Herald and News article interviewing KCEDA Executive Director, Greg O’Sullivan, along with two of the seven site selectors that attended the conference:
Written By: Kelley Rendziperis, Site Selection Group
Site Selection Group frequently fields questions on the applicability of economic incentives in a company’s site selection process or in their business operations. This article, the first of a two-part series, focuses on the most frequently occurring questions from Corporate America during the pre-site selection process.
1. When should we start thinking about economic incentives?
There are various scenarios in which economic incentives may come into play. For instance, is the company renewing a lease, evaluating a new site, consolidating facilities, relocating an office, or making annual routine capital investments? Depending on the trigger, the timeline as to when to start thinking about incentives may differ, but sooner is generally always better than later. A company has the most leverage to negotiate economic incentives early on in the process. Thus, Site Selection Group recommends a couple key strategies:
Create a systematic process where economic incentives are always part of the annual or semi-annual budget planning. Usually key stakeholders from the business, including C-suite executives, real estate, operations, tax, human resources and governmental affairs, are part of these meetings and thus including economic incentives as a strategic consideration will keep them top of mind to all relevant stakeholders as they make decisions; and
On average, 12 months advance consideration of economic incentives will yield the greatest results. This is due to the legitimate competitive site selection process at this stage, as well as the need to capitalize on programs which may require substantial application and approval procedures prior to a commitment being made or announced.
2.Which states are most competitive for incentives?
This answer is heavily influenced by the type of project involved. There are certain states which seem to favor capital intensive projects by granting property tax abatements and/or investment tax credits. Other states may be more focused on job creation and rely on payroll rebates and/or refundable tax credits to attract more jobs. In general, the most competitive states for economic incentives have a diverse set of programs which they can utilize at a state and local level. These programs would include inducements that offset direct and indirect tax components because these items are impactful to different business units within an organization.
3. What are the most common types of economic incentives?
The most common type of economic incentives offered to companies continues to be tax credits. These types of credits are considered “statutory” and are typically granted based on an entity’s job creation and/or capital investment within a state. However, state economic development programs continue to evolve by offering cash grants, payroll rebates and indirect tax abatements (sales tax, property tax). As an example, Texas utilizes very little, if any, true tax credits and rather relies on a multitude of various state and local discretionary economic incentive programs. It is also worth mentioning that most jurisdictions no longer offer upfront cash and rather use a performance-based model which helps to avoid any clawbacks and is more politically popular.
4. Do economic incentives really matter in the site selection process?
Yes. While economic incentives will never make a bad site option a good site, they will help offset any gaps that exist in two competing jurisdictions. States and local communities have varied tax rules, rates, exemptions, etc. and often times economic incentives can help bridge the gap between differences. Such incentives might enable a company to choose a location which has a better labor pool or more economical wages that it would not otherwise be able to select due to large direct and indirect state tax differentials. In addition, companies have a duty to their shareholders to try to procure all available economic incentives in order to generate the best possible return on investment.
5. What range of economic incentives can I expect to receive?
This question is obviously pressing to our clients. Unfortunately, there is no easy generic answer. However, through years of experience and prior project comparables, most economic incentive packages will range from 5 percent to 15 percent of capital investment and/or $1,000-$5,000 per net new job.
To review this article or learn more information on other Site Selection Group news and projects, please refer to the link provided just below:
This article was in Monday’s (May 20th, 2016) Herald and News
Written By: Holly Owens, Herald and News
Grants and awards worth more than quarter-million dollars, promoting higher education, were recently awarded to Klamath Community College (KCC), according to a news release.
On May 12, KCC received a $100,000 Special Opportunities Grant from the Oregon Community Foundation to support development of the school’s Work Skills Technology Center. On Wednesday, KCC was notified of their selection for a $146,444 grant from the Higher Education Coordinating Commission to be used towards Science, Technology, Engineering and Math (STEM) programs.
“These grants strengthen our current programs and continue our momentum of support for the new Work Skills Technology Center,” said Julie Murray-Jensen, vice [resident of enrollment and external affairs. “The HECC grant allows us to better serve students in these programs with industry certified experiences and program development. Our new center focuses on our partnerships and high demand and high wage programs as a way to prepare the workforce.”
OCF will also be awarding $6,000 to the KCC Foundation in support of the Betty Gray Community College Scholarship, which helps students that are pursuing early childhood education.
To review this article or others on the Herald and News Website, please refer to the link provided just below:
This article was in Tuesday’s (May 17th, 2016) Herald and News
Posted by: Holly Owens
Election results posted at 8:10 p.m.
“Commissioner, Position 1”
Lyncho Ruiz 775 5.66%
Donnie Boyd 6958 50.84%
James Williamson 301 2.20%
Carl A Pfeiffer 463 3.38%
Pati Horton 1869 13.66%
M Sean Manion 109 0.80%
Tom Mallams 3154 23.05%
Write-In 56 0.41%
Total 13685
Overvotes 27
Undervotes 1675
“Commissioner, Position 3”
Steve Ball 1773 13.38%
James Bellet 3551 26.79%
David M Carpenter 569 4.29%
Derrick DeGroot 5775 43.57%
Dennis Vader 408 3.08%
Dusty Turner 1113 8.40%
Write-In 67 0.51%
Total 13256
Overvotes 13
Undervotes 2118
Sheriff
Martin F Rowley 2156 16.02%
Chris Kaber 6577 48.87%
Steve Lewis 4637 34.46%
Write-In 88 0.65%
Total 13458
Overvotes 8
Undervotes 1921
“Measure 18-105, Allowing State Licensed Marijuana Facilities”
Yes 6087 42.03%
No 8395 57.97%
Total 14482
Overvotes 7
Undervotes 898
“Measure 18-106, Formation of Predatory Animal Control District”
Yes 2351 51.28%
No 2234 48.72%
Total 4585
Overvotes 1
Undervotes 292
This article was in Wednesday’s (May 18th, 2016) Herald and News
Written By: Lacey Jarrell, H&N Staff Reporter
Klamath County commissioner candidate Donnie Boyd had enough votes to win the position one seat as of the Herald and News’ Tuesday press time.
As of 10 p.m., Boyd had 50.84 percent of the vote for the position 1 seat. Incumbent Tom Mallams had 23.05 percent of the vote.
The Klamath County clerk website says a commissioner position can be won in the primary election if a candidate receives 50 percent, plus one, of the votes.
According to Klamath County Chief Deputy Clerk Paula Harris, if Boyd’s tally holds or increases, he will win the seat.
“I’m pretty excited. I think things look really, really good,” Boyd said.
Mallams said he was disappointed, but not surprised by the tally.
“I ran a hard race, and the people have spoken,” Mallams said.
Mallams noted that vote results may change, and if Boyd doesn’t secure more than 50 percent of the vote, the two could face off in the November election.
“I’m always an optimist,” Mallams said.
The Herald and News previously reported that Boyd, 52, is a local businessman who grew up in Klamath County.
“I think Klamath Falls needs to be a better place — the way I remember it as a kid,” Boyd said.
“I’m all about economic development, and I really want to bring new business into Klamath Falls,” Boyd said. “I think we need to help our image in the state. I think Klamath County has a very poor image in the state of Oregon, and we need to solve that.”
He is the manager for a local Papé Machinery rental division. Boyd said it’s too early to know if he wins the seat how it will impact, if at all, his Papé business.
“We’re going to have to wait and see how that works out,” Boyd said. “The Papé family is behind me 100 percent.”
The Herald and News previously reported that Mallams, 68, is a Beatty-area cattle rancher. He graduated from Medford High School and attended classes at Southern Oregon University. Mallams has been active in local water issues. He was the subject of an unsuccessful recall petition last year.
Utilizing the Country Music Television’s (CMT) Empowering Education program, KCC coordinated with local partners (KCEDA and the Farm Bureau) to host a workforce roundtable, job fair, and concert featuring rising country talent, Hailey Whitters.
This event was especially aimed at enhancing Klamath’s educational presence in agriculture, where at the workforce roundtable, agricultural, educational, and state representatives entered a discussion focused on identifying and understanding changes that are expected to occur in the agriculture industry within the next 5 years. This lead into a collaborative conversation about how these representatives could work to systematically take advantage of such trends locally so that together they could help further establish Klamath as a community that takes education and agricultural growth seriously.
KCEDA thanks all representatives and partners who were able to help facilitate the event, as well participate in it.
In early May, gathering over 70 community volunteers, Klamath Excellence recently hit the streets for their 2016 Spring Clean-Up. Volunteers who were involved in the cleanup took on tasks such as mowing, raking, sweeping, picking up litter, and more. KCEDA commends the efforts of Klamath Excellence and the volunteers involved with the beautification project, identifying the endeavor as one of many positive initiatives helping Klamath move forward.
Originating from KCEDA’s Quality of Life Committee, Klamath Excellence has since evolved into an organization of its own, tasking itself to oversee the rejuvenation and beautification of Klamath Falls in conjunction with economic growth and recovery.
To learn more information about Klamath Excellence, please refer to their website in the link provided just below:
By: Jim Chadderdon, Discover Klamath Executive Director
The most recent legislative session ended March 3rd. Many new bills were submitted and several received substantial media coverage, including a bill adjusting minimum wage. One bill you may not have heard about was HB 4146C, which increased the State Transient Lodging Tax (TRT) Rate.
The measure, which was signed into law by Governor Brown April 4th, increases the statewide Transient Lodging Tax from 1.0% to 1.8% after July 1, 2016, and then reduces the tax to 1.5% after July 1, 2020. The 80% tax increase will raise approximately $27.4 million in tax revenue. The bill requires the Oregon Tourism Commission, dba Travel Oregon, to spend 20% of the tax revenue to implement a new Regional Cooperative Tourism Program (RCTP) and another 10% be used for a competitive grant program that includes tourism-related facilities or tourism-generating events.
The RCTP program will favorably affect southern Oregon as Travel Southern Oregon (TSO) – a seven county marketing cooperative which includes Klamath County – will realize and manage incremental revenue windfalls of approximately $500K annually. These new dollars will be managed by TSO’s Board of Directors, of which Klamath County Tourism officials are included.
The original proposal was to increase the tax 100% from 1% to 2%. The decrease to 1.8%, along with the mandate that the state allocate 20% of the money to regional tourism programs and 10% to competitive grant programs, was made by the Legislature in response to strong criticism from (mostly rural) tourism officials, as well as some lodging owners, who did not believe their areas would benefit from the increased tax revenues.
HB 4146C allows Travel Oregon to spend money on “tourism programs” which would include subsidizing costs of events, such as the 2021 World Track and Field Championships in Eugene. Track Town USA was a major sponsor of the bill as it hopes to receive a significant amount over the next five years to help cover event costs in 2021.
HB 4146C also includes a requirement that a work group lead by the Legislative Revenue Office study polices related to distribution of revenues for the regional cooperative tourism program. Issues to be reviewed include: establishment of regional tourism boundaries, and, distribution of state tax revenues within each region.
Klamath County’s lodging tax currently stands at 9.0%, which is about middle of the pack around the state. 8.0% remains in the county and 1.0% is paid to the Oregon Tourism Commission, dba Travel Oregon, for statewide promotion. With the new law going into effect July 1st, the 1.0% will become 1.8% for all counties statewide.
Oregon’s tax on lodging is the 2nd lowest in the country. At just 1.0%, Oregon ranks 47th in the nation. Connecticut is 1st (highest) at 15%. Being so low, it is unlikely tourism visitation will be adversely affected by the increase from 1.0% to 1.8%, since out of area travelers are used to higher rates elsewhere. Plus, Oregon’s lack of a general sales tax makes Oregon an attractive travel and shopping destination.
This article was in Tuesday’s (May 3rd, 2016) Herald and News
Written By: H&N Staff Reports
The Sky Lakes Medical Center board of directors last week voted to oppose Ballot Measure 18-105, which would grant licenses to cannabis-related business in Klamath County.
“Taking a political stand, while not unprecedented, is rare for the board,” Sky Lakes President and CEO Paul Stewart said in a press release Monday. “We do not normally adopt a political position unless it relates to health.
“We see the ballot measure as a clear threat to the health of the people we serve.”
Ballot Measure 18-105 seeks to overturn the Klamath County commissioners’ decision to ban the sales and production of marijuana in Klamath County. The measure’s defeat would leave that ban in place.
Proponents of the measure claim that the business of growing and selling marijuana is heavily regulated, and that fears of it falling into the wrong hands, such as children, are overblown.
Further, farmers want the opportunity to grow the cash crop, they say.
“Sky Lakes regularly demonstrates its leadership in health matters,” Stewart said. “As an organization, we contribute considerable time and talent to improve the health, self-reliance and well-being of people in our community.”
Sky Lakes will provide $600,000 over three years to enable the Blue Zones Project in Klamath Falls. Blue Zones is a new health initiative aimed at raising the overall health and longevity of the community.
“The board decided it’s important to take a stand on this measure that is so antithetical to all we do and so contrary to all we hope to accomplish,” Stewart added.
He noted the effects of long-term marijuana use are poorly studied, yet there is evidence to suggest regular use of recreational marijuana:
Affects short-term memory, sensory perception, attention span, problem solving and psychomotor control, which goes to driving safety;
Leads to inflammatory changes of the airways, which contributes to an increased risk for acute and chronic bronchitis;
Affects brain development, with some studies showing impaired thinking and learning functions and decreases in IQ in teens using marijuana;
Is associated with higher rates of high school drop outs;
Is linked to increases in job absences, accidents, and injuries; and
Can cause fluctuations in anxiety and depression.
“Our lack of knowledge about the real impacts of marijuana use is no different than our view of tobacco use in the mid-1950s,” Stewart said. “Smoking was common and accepted at the time, when we knew little about the dangers or the short- and long-term harm caused by tobacco.
“As a society, we are paying dearly now for our actions then.”
Recreational marijuana became legal in Oregon in July 2015. It was passed by voters in November 2014. However, the state is still working through a host of issues on sales and licensing dealers. Several eastern and southern counties, including Klamath, had a majority of voters opposing the legalization. Medical marijuana sales are allowed within the city limits.
Stewart pointed out that in Colorado, where marijuana has been legal since 2012, health care organizations have witnessed increased patient harm caused by retail marijuana. He noted hospitals there report:
A dramatic increase in the number of newborns who test positive for marijuana (marijuana use during pregnancy is linked to increased risk of brain and behavioral problems in babies);
An alarming number of children 18 and younger being treated in emergency departments for marijuana-related conditions;
More accidental and intentional overdoses; and
More primary care visits for breathing problems related to inhalation of marijuana.
In February, a child was treated at Sky Lakes after accidentally eating a commercially produced marijuana-laced cookie he found on the ground.
“Those favoring the ballot measure sales and production of marijuana are simply wrong when they say it would become an economic force, and that it would contribute additional tax revenue,” Stewart said. “The economic benefit is spurious at best.”
Klamath County’s direct revenue from marijuana taxation would amount to less than $26,000 a year, much of which would be used to enforce marijuana sales laws, a government report notes.
In addition, owners of legal dispensaries in Colorado suggest that the black market has not gone away, according to published reports.
The Sky Lakes board’s stance agrees with local economic development agencies in that allowing the sale and distribution of recreational marijuana would negatively impact the Klamath County work force.
“We believe passage of 18-105 would make the area less desirable and less competitive when it comes to attracting to the region new businesses that seek a drug-free workforce,” Stewart said.
Written By: H&N Staff Reports
This article was in Thursday’s (April 21st, 2016) Herald and News
The U.S. Senate Tuesday passed a long-anticipated bipartisan energy bill, and Klamath Basin irrigators will reap some benefits, according to a press release.
The Klamath Water Users Association (KWUA) announced that it has been working for more than six months on the package along with Sens. Ron Wyden and Jeff Merkley, both Oregon Democrats, and others.
More than 300 amendments were offered to the energy bill, the package of Klamath amendments is one of only 39 amendments that were ultimately accepted into the final version of the bill.
Having passed the Senate, the bill now moves to a conference committee to have differences worked out from a previously passed House version of the bill.
“This is a significant achievement and one that wouldn’t have been possible without the relationships KWUA has developed with other stakeholders over the years,” said Brad Kirby, president of KWUA.
“These things don’t just happen, they take a tremendous amount of time, effort and resources and a sustained and persistent approach.” Kirby added that KWUA has never stopped working on these issues and that they are part of a package that keeps Klamath irrigators moving forward, not back.
Key elements
The key elements for the Basin include:
C-Flume Emergency and Extraordinary Operation and Maintenance (EEOM) designation, which would save millions of dollars for Project water users;
Direction to Department of Interior to take actions to reduce power costs for irrigation in the Upper Basin;
Authorization for reimbursement of some D Plant pumping costs;
Elimination of need for federal contracts or permits for conveyance of non-Project water such as groundwater;
Clear and permanent authorization for locally supported water bank activities.
Congressional delegation help
Merkley and Wyden introduced the amendment in early February, and received invaluable support from California Senators Diane Feinstein and Barbara Boxer.
Congressman Greg Walden, R-Ore., actively engaged to help Senate Republicans understand the importance of the amendment and secure their support, the release said.
KWUA Executive Director Scott White said the level of engagement and knowledge of these issues with the congressional delegation is impressive.
“I can’t say enough about the work our delegation and their staffs did on this package of amendments. Even when things looked bleak, they stuck with it.” White also pointed out that support and assistance from the leadership of the Senate Energy and Natural Resources Committee was also critical.
“We are most grateful to Chairwoman (Sen. Lisa) Murkowski and Ranking Member (Sen. Maria) Cantwell for their support of this package as well.” Both White and Kirby said that this set of amendments is just one more step toward a larger goal of securing the viability of our family farms and ranches.
Settling water issues
Since the expiration of some key components of the Klamath Settlement Agreements in December, KWUA has continued to try to preserve important benefits that protect and assist irrigators.
White explained that these amendments are not related to dam removal, but that the involvement and support of a diverse group of stakeholders was key.
“There are many people who have helped get us get to this point, we are very fortunate to have significant support in Washington and in the West.”
Kirby pointed out that KWUA will continue to work with other parties with an ultimate goal of establishing a secure and predictable water supply for Project irrigators, while working productively with neighbors in the watershed.
“It’s a big and complicated watershed, we aren’t alone,” he said.
KWUA is a nonprofit private corporation that has represented Klamath Reclamation Project farmers and ranchers in its current form since 1953. The association’s membership includes rural and suburban irrigation districts, other public and private entities and individuals who operate on both sides of the California-Oregon border.
These entities and individuals typically hold water delivery contracts with the Bureau of Reclamation.
The Klamath Project is home to more than 1,200 family farms and ranches and encompasses more than 170,000 acres.
To review this article or others on the Herald and News Website, please refer to the link provided just below:
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