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FEBRUARY/MARCH 2015

FOR BUSINESS
VOLUME 14, ISSUE 1
USA $3.95
CANADA $6.95

Looking
ahead
Experts forecast trends and issues
facing local businesses in 2015

The Eugene Area Chamber Of Commerce: Celebrating…Promoting…Informing Business


Publisher & EDItOR

THIS ISSUE
David Hauser, CCE

Content editor
Tracy Illene Miller

Eugene Chamber
FEBRU A R Y / M A R C H 2 0 1 5 Executive Committee
Craig Wanichek
Chair
President & CEO,
Summit Bank
Cover story

FEBRUARY/MARCH 2015
Nigel Francisco

10
Chair-elect
Economists and market watchers FOR BUSINESS
CFO, Ninkasi Brewing
Company LLC
agree 2015 looks brighter, but VOLUME 14, ISSUE 1
USA $3.95
CANADA $6.95

what’s happening in Oregon and, in Cathy Worthington,


Treasurer
particular, Lane County? We asked area leaders Licensed Tax
the trends and issues they anticipate we’ll see in Consultant,
our local economy this year.   Worthington Business
Services

Cover illustration by Asbury Design


Sheryl Balthrop
Past Chair
Partner, Gaydos,
Churnside & Balthrop

Features PC

Looking Advertising

8 ahead
How will the local economy do in 2015? Eugene Area
The Eugene Area Chamber of Commerce Chamber of Commerce
Experts forecast trends and issues
541.484.1314
Economic Forecast features expert facing local businesses in 2015

speakers providing insights and economic The eugene AreA ChAmber Of COmmerCe: CelebrATing…PrOmOTing…infOrming business Design/Layout
prognostications for the coming year. Asbury Design
541.344.1633

18
$PAC-075_MENTOR-EugeneChamber_7.375x4.8126_FebMar2013.indd 1 1/11/13 1:57 PM It is time to gear up for changes in Columns/Departments www.asburydesign.net

5
Printing
workplace laws. We take a look at new
Chamber @ Work Shelton Turnbull
state and federal mandates, a voter-
What the Chamber is doing to support and 541.687.1214
approved initiative, and a controversial local
promote businesses in the Eugene area. Eugene Area
ordinance.
Chamber of

How do we know what


Commerce

6
Four Questions 1401 Willamette St.
Eugene, OR 97401
Two businesses answer four questions

business owners need?


that give insight into their companies. 541.484.1314

Open for Business:


A publication of the

20
Eugene Area Chamber
Business News of Commerce
Promotions, new hires, and new (USPS-978-480).
members Open for Business is
published bimonthly
by the Eugene Area

26
Chamber of Commerce
Last Call in February, April, June,
Dave Hauser on August, October and
We’re business owners too.
December. Circulation:
aspirations for 2015 3,800.
Because business and personal needs are often intertwined,
Open For Business
we focus on integrated solutions—from assurance, tax, and © 2015
consulting to wealth services. The subscription price
is $25, included in
Put a century of experience to work for you. Because your ADVERTISER INDEX membership. Periodicals
Postage Paid at Eugene,
success is just as important as your company’s. Certified Public Accountants | Business Consultants 14 Carter and Carter Financial 4 Hershner Hunter LLP 2 Moss Adams 16 Summit Bank SBA Division OR.
17 City of Eugene - Bold Steps 28 Kernutt Stokes 2 Pacific Continental Bank 22 University of Oregon
27 Eugene Airport 25 Lane Transit District 21 Parr Lumber POSTMASTER: Send
(541) 686-1040 W W W. M O S S A D A M S . C O M Acumen. Agility. Answers. 21 Evergreen Roofing 13 McKenzie-Willamette Medical 19 The Register-Guard
9 Harrang Long Gary Rudnick PC Center 15 Summit Bank
address changes to
Eugene Area Chamber
of Commerce, P.O. Box
1107, Eugene, OR 97440-
1107
CHAMBER@WORK
Chamber recognized Chamber
for economic development offers workers
compensation
Mayor Kitty Piercy acknowledged development community in taking stock of discount
the work of the Chamber and other progress toward the goals outlined during
organizations in orchestrating the Regional the first Regional Prosperity Summit, which The Eugene
Prosperity Economic Development Summit. was held four years ago and resulted in a Area Chamber of
The two-day summit provided business and plan for the area. Panels focused on three Commerce and
community leaders with the opportunity to strategic industry clusters: Edu-Tech (or SAIF Corporation
discuss the community’s progress toward education and technology), food production, have partnered for
achieving regional economic development and advanced manufacturing. The second years to provide
goals. day of the summit was held in Springfield a group Worker’s
The first day of the summit was held at and served as a forum for federal and state Compensation
the UO Ford Alumni Center, and focused officials to hear about developments in the discount available for
on engaging the business and economic local economy. our eligible members.
The discount
for 2015 is 10%,
providing savings for
the members who
are participating
ranging from $100
to $3,500. To find
out if you qualify,
contact your workers
compensation
insurance agent or
Pat Morrill at SAIF
Corporation at
503.373.8827.
Members of the Economic Prosperity Summit planning and development
team accept a community award from the Mayor during the City of Eugene
2015 State of the City address.

John Brown named 2014 Eugene First Citizen


John Brown, a principal in the real John’s many for the Relief Nursery, the Eugene Area
estate firm Evans, Elder and Brown, civic interests have Chamber of Commerce, Downtown
Inc., was recently honored as the 2014 led him to serve Eugene, Inc. and the Downtown
Eugene First Citizen. Presented by the as a Eugene Water Commission. He is a former member of
Eugene Area Chamber each year since and Electric Board the Eugene Police Commission, a past
It’s not just our current mantra; it’s a belief that has guided us for years. Ever since Jim and Dave 1938, the First Citizen Award honors an Commissioner, president of the Cal Young Neighborhood
set the example by charting a dramatic new course for Hershner Hunter back in the 1970s. It’s why, outstanding individual who has made on the Willamette Association and a past chairperson of the
today, we’re ahead of the game, having developed strong talent to take over for our seasoned, significant contributions to the Eugene/ Family Services Board of Directors; the Willakenzie Planning Team.
Springfield community through business McKenzie River Watershed Council; John’s passion is the outdoors,
Baby Boom Generation attorneys. And it’s why you can be assured that our legal expertise is
and community service efforts. The honor Southtowne Rotary; the HIV Alliance including fishing, and related outdoor
guaranteed to be around for another generation. Or two or three. will be conveyed at the Eugene Chamber’s Board of Advisors; Downtown Safety activities. He is dedicated to protecting
annual Celebration of Business presented Task Force; Lane Metro Partnership; and the local environment and has worked to
Our future is bright and getting stronger. You can rely on the strength of our next generation by Summit Bank set for Tuesday, February the Public Lands Advisory Committee. ensure clean waterways. He is particularly
as you develop yours. 541-686-8511 | hershnerhunter.com 3rd at the Hilton Eugene and Conference His past community service includes devoted to the preservation of clean
Center. membership on the board of directors drinking water.

F E B R U A R Y/ M A R C H 2 0 1 5 | OPEN FOR BUSINESS 5


Four questions FOUR QUESTIONS

Gallic &
We asked two local businesses to respond to four questions
that give insight into their companies and their predictions for 2015. Johnson
Financial
Gallic & Johnson Financial, now solely
operated by Kerrie Johnson, specializes in
loan solutions, providing private financing,
primarily in well-secured real estate loans.
Kerrie is taking ownership upon the retire-
ment of long-time industry leader Gordon
Gallic, whom she has worked for and with
for nearly a decade. Gordon began the
business approximately 25 years ago, with
his own mother as his first investor.

Tell us something about your


business not everyone knows?
We are weird. We are specialized for
Westraunt Concepts Inc. managers and owners from left to right: Juanita Jones, Gabby Norton-Guerra, Chad West, people who do not fit the traditional
Flint Livingston, Jason Erb, Lynn Horning & Phil West (not pictured) at Bill & Tim’s Barbeque. lending model. Private money is not the
same thing as subprime lending. We place
private, individual funds into well-secured
Westraurant
school and college; in fact, one who is cur- ize in shotgun weddings and last-minute
real estate loans that aren’t available in the
rently working part time who came to us events.” The eleventh-hour cancellations
conventional marketplace. We’ve made
Concepts
while at Sheldon and now is putting herself that bring business to us are our favorites.
loans to everyone from retired grandmas on
through the UO. Just this last Christmas, we had a cus-
social security to wealthy doctors. Our loans
tomer who had a party scheduled and was
Westraunt Concepts, a locally owned Given the current state of the have ranged from $15,000 to $2 million.
cancelled on by the restaurant the day of
family venture operated by brothers Phil economy, what do you predict for The Dodd-Frank legislation, which was
the party. She had to move the party to her
and Chad West, includes the wildly popular your business over the next year? enacted as a result of the mortgage crisis,
house and called Juanita [long-time Eugene
Mucho Gusto, Dickie Jo’s, Dickie Yo’s, Bill Growth! The forecast is strong for drastically decreased our ability to offer Kerrie Johnson is taking ownership of Gallic & Johnson Financial
Mucho Gusto manager]. She didn’t even
& Tim’s and Westraunt Catering, employ- single-digit growth, in particular in our loans to homeowners.
know what she wanted. She had to throw
ing more than 130 Oregonians from Med- catering. We will expand, making changes man’s son pledging his own home so his
it together and was looking to us to tell her.
ford to Tualatin. and additions to our menus, and add new Juanita, who embraces the “Jim-ism,”
Given the current state of the “Joining the Chamber father could get the loan.
Phil is the long-time industry visionary, economy, what do you forecast for
catering vehicles and more advertising. We
and takes ownership of the recipes and hired Flint [Livingston] as catering director,
asked her for how many, told her what she
was going to bring, looked at her key people
your business in the coming year? is important for any Two years later, he sold the business and
became one of our best investors with the
menu, along with all aspects of promotion, A Republican-controlled Congress
branding and design. Chad, newer to the
and we will hire more on for catering jobs.
We will see aggressive expansion in
and said, “We can do this.” We pulled it could benefit my business in some easing of Eugene business proceeds. He is not our only customer to
come to us who has, later on, come back as
together, amazingly. the mortgage regulations that have limited
restaurant business, but far from a stranger
to a hyper-paced business world, maintains
barbeque at Bill & Tim’s; the intent is to
reach more students with new menu items What would you say to a new
the scope of my business. With some eas- because of the fervent an investor.
ing of the legislation, we could help more
the financials and oversees the upkeep and
maintenance improvements of the busi-
and menu distribution on campus. Bill & business owner about how the
homeowners who cannot rely on traditional advocacy on behalf of What would you tell a new business
Tim’s wants to reach the students with more Eugene Chamber of Commerce owner about why joining the
nesses. attractive pricing, bringing back a burger, impacts you as a business?
bank financing. In some cases, this would
mean saving homes and owners from being
local businesses, small Chamber of Commerce is important
small plates, happy hour and promotion of Joining the Chamber is an ideal way to to local business?
Tell us something about your
their BBQ catering. establish contacts. The networking is impor-
foreclosed upon. This is important work. We and large.” Joining the Chamber is important for
business not everyone knows? are not just real estate investors, but the brisk any Eugene business because of the fervent
tant, and it hooks you up with key people, various reasons. He had a business in com-
For the industry we are in, the tenure of What is your best customer story? real estate market has allowed me to increase advocacy on behalf of local businesses, small
your future customers. mercial and residential property. We got
the employees is remarkable. We have 140 Oh, we love to save someone’s tail. Jim my staffing and increase loan volume. and large. I don’t have time for doing this
Flint loves it because she has fun. She creative, which we call “underwriting from
years of overall experience. Approaching used to say, (known widely as Jim-isms, in work myself. Also, the numerous network-
likes going to Greeters [Friday mornings What is your best customer story? our guts.” If we like a person, sometimes we
our fifteenth anniversary, we have employ- memory of the late and great Jim West, ing opportunities they provide connect me
at Valley River Inn]; we had a booth at the A borrower client needed money for his can find a way to make the loan work. We
ees who have stayed with us through high brother and business partner),“We special- with the community.
Expo, we enjoy it. business, and banks wouldn’t loan to him for crafted a loan solution that included the Eugene Area
Chamber of
Commerce

6 OP EN FO R BUSI N ESS | EUGEN E AREA CH AMB ER O F COM M ERC E


economic FORECAST

A powerhouse of information
The 2015 Economic Forecast Economic Forecast 2015
offers insights and intelligence n Monday, March 30
for local businesses n 2:30-5:00pm
n Hilton Eugene
The Eugene Chamber of Commerce Economic Forecast 2015 n Keynote address by
features expert speakers providing insights and economic prog-

Our Deep
Sean Robbins
nostications for the coming year and will take place on Monday, n Register at
March 30, from 2:30-5:00pm at the Hilton Eugene.  
www.eugenechamber.com Sean Robbins
This year’s program features:

Sean Robbins, director, Business Oregon


Sean Robbins became the director of Business Oregon in
than 63 communities across 21 states/provinces. Ms. Larsen
Oregon Roots
June. Prior to his appointment, Robbins served as president and
consulted with local leaders on the Economic Development Big
Look process and will share findings from that process.
Help Businesses Prosper
CEO of Greater Portland Inc. He has more than a decade of
experience in economic development, commercial real estate The Register-Guard Panel of Economists
and urban and regional planning. Robbins will review Oregon’s Oregon’s leading economists analyze trends and help an-
evolving economic development strategy and connections to lo- ticipate the economic year ahead in a fast-paced, interactive
cal economic development efforts. and entertaining panel presentation featuring: Bill Conerly,
Allison Larsen, Principal, TadZo
Conerly Consulting; Tom Potiowsky, former state economist We have been helping
and professor of Economics at Portland State University; Ed
Allison Larsen leads an economic development and
site selection consulting firm. She has over 17 years of
Whitelaw, founder and president of ECONorthwest and profes- Oregon businesses
economic development experience working with more
sor of Economics, University of Oregon; John Mitchell, M & H
Economic Consultants; and Brian Rooney, regional economist at meet today’s challenges
the Oregon Employment Department.
Economic Forecast features six of Oregon’s leading econo-
and tomorrow’s
mists, 600 top industry and community leaders and a lot of opportunities
information you can use to help navigate your business.
Register today at www.eugenechamber.com.
Eugene Area
Chamber of
for over 50 years.
Commerce

harrang.com
800.315.4172
info@harrang.com

PORTLAND EUGENE SALEM

8 OP EN FO R BUSI N ESS | EUGEN E AREA CH AMB ER O F COM M ERC E F E B R U A R Y/ M A R C H 2 0 1 5 | OPEN FOR BUSINESS 9
COVER STORY

What’s
ahead?
Local business leaders offer business
trends and predictions for 2015
by Tracy Ilene Miller

E
PHOTOS BY DAVID LOVEALL

conomists and market watchers agree that the


national outlook for 2015 is brighter, as 2014 rep-
“The GDP for the last resented a growth year, an upturn from a recession
quarter was very strong. With that hit the country and Oregon squarely between
2008 and 2009.
an improved local economy Some of the indicators the U.S. economy is in
and stronger credit quality, the recovery:
• Although underemployment (working at reduced wages or
financial sector will reflect the Eugene ... is trying hours) is still an issue, unemployment dropped to 5.6 percent
overall community and should in December, according to the Labor Department, the lowest
to expand its urban growth since 2008, with big gains in construction and (smaller but still
have a solid 2015.” “Real estate continues boundary, but that is step significant activity) in factory jobs, health care and business
services.
– Craig Wanichek to be a stable investment one; then we need to get
President, Summit Bank • Consumer spending is strengthening, at 0.6 percent in
over the long term ... This [an increase in] November, double from October, with households buying
new cars, appliances, televisions and clothing, according to
reality will regain consumer manufacturing. the Commerce Department, and light-vehicle sales the high-
confidence during these – Scott Lindstrom, est in 2014 since 2006.
Vice President of Operations, • U.S. Gross Domestic Product (GDP) expanded 2.5 percent
continuing uncertain times.” Jerry’s Home Improvement
in 2014, and is expected to climb to over 3.5 percent in 2015.
Center
– Marcia Edwards, Other recession indicators — such as real manufacturing and
Broker , Windermere Real Estate
Lane County

1 0 OP E N FO R BUSI N ESS | EUGEN E AREA CH AMB ER O F COM M ERC E F E B R U A R Y/ M A R C H 2 0 1 5 | OPEN FOR BUSINESS 11
COVER STORY COVER STORY
trade sales, industrial production, nonfarm and by supporting the effort to bring afford- continue to increase as more units are added.”
payrolls and real personal income — saw able new home inventory to Lane County, we “Locally, the biggest Continued low supply. Locally, commer-
gains in 2014, with all except personal income
trending upward every year since 2010.
can significantly strengthen this community
for years to come.”
thing is the boom in cial market rent levels are too low to justify
new construction.
But what’s happening in Oregon and, in
Commercial Real Estate
student housing ... Outside of the campus apartment market,
particular, Lane County? How does activity “We haven’t seen new construction being fi-
compare with national trends? Looking at trends with a wide angle, things
are looking up for commercial real estate, and
All of these new units nancially feasible in most sectors. One excep-
To get a sense of what’s behind us and tion is downtown, but this has only occurred
what’s ahead, we asked area leaders the trends local activity parallels national trends. have come at a time with sizeable help from the city,” Dingman
and issues they anticipate we’ll see in our local Multifamily units are popular. For the says.
economy this year.   first time in 10 years, nationally, multifamily when UO enrollment Investors follow the jobs and the
housing has outstripped office construction people. Nationally, investors are going to
Residential Real Estate because of shifting desires for housing by both is flat, so there is the where there is a combination of population, job
Housing is a big driver of jobs and the Millennials and aging baby boomers; funders
economy, and is a much-watched indicator of have been strongly backing projects in the question of whether it is growth and higher income levels — markets
such as San Francisco and Austin, and includ-
economic health.
Not unlike other indicators discussed
multifamily sector.
“Locally, the biggest thing is the boom in
sustainable.” ing Seattle and Portland, where technology
jobs and an influx of talent has accelerated job
here, Lane County residential real estate is in student housing,” says Corey Dingman, part- gains ahead of other areas of Oregon.
recovery, and is doing so despite challenges, ner at Duncan & Brown Real Estate Analysts. – Corey Dingman
P artner at Duncan & Brown Likewise, locally, new commercial de-
says Marcia Edwards, a residential real estate “It has been a popular investment, with good Real Estate Analysts velopment has been focused on areas with
broker with Windermere Real Estate Lane returns due to historically low interest rates the strongest rents, which justifies the costs
County. and strong rents. National companies special- developers coming to the area and building of construction. That’s been primarily in the
When comparing fourth quarter sales for izing in purpose-built student housing have 100+ unit complexes. University of Oregon and Coburg Road areas,
2014 and 2013, the number of single-family, now discovered our market and have made a “All of these new units have come at a time Dingman says. Similarly, redevelopment is
detached homes sold were up by 17 percent strong push to add units over the past three when UO enrollment is flat, so there is the concentrating in areas that draw people from
in Lane County (excluding Florence area) years.” question of whether it is sustainable,” Ding- a wider demographic, such as Valley River
and 2.1 percent nationally. At the same time, The trend is away from local developers man says. “We have seen school-year vacancy Center and Gateway Mall.
Lane County has seen a consistent decline in building, say, 10-unit projects toward national for the first time in 10 years, and vacancy will The good news is: There is activity occur-
inventory since June 2014 from an already low
inventory of homes available for sale at that
“In the past two years,
time. Fewer houses are going on the market. we’ve started to see
Upcoming challenges, then, for residential
real estate are quantity of houses and price.
commercial land sales

We know you have better


“Inventory is low. The supply side is deplet- happening. That is a good
ing,” Edwards says. “We have an increased
number of houses that have sold, fewer “used”
indicator we are returning to
normal market conditions.”

things to do than
homes coming onto the market and not
enough new construction home starts.”
– Corey Dingman,
In addition, although there is sufficient partner at Duncan & Brown
inventory at higher price points for detached,

wait hours in an E.R.


creasing labor and material costs, Real Estate Analysts (excluding
single-family homes in Lane County in some
Edwards says. The final product has F lorence),
geographic areas, the supply is low where
to be priced to take into consideration while nation-
demand is highest, for homes at $225,000, the
these significant costs, which means higher- ally it appreciated
median sales price in 2014.
priced houses. by 5 percent.
Two significant factors contributing to this
In addition, Lane County builders expe- “Real estate continues to be a stable in-
mismatch are the local employment base and
rienced in 2014 increases of 9–12 percent vestment over the long term, and I think that
buildable land. The local economy provides
in construction costs, including impact fees, this reality will regain consumer confidence THE 30-MINUTES-OR-LESS E.R. SERVICE PLEDGE
insufficient long-term, higher-wage jobs to
system development charges and materials, during these continuing uncertain times.” Emergency medicine is about three things: compassion, skilled care and speed. You’ll find these
enable buyers to purchase at the higher price
Edwards says. Edwards says. at McKenzie-Willamette Medical Center. The experienced E.R. physicians and the entire team are committed to
points, where the inventory is highest, Ed-
For 2015, Edwards anticipates a price We are at the right place and the right working diligently to have you initially seen by a clinical professional* within 30 minutes of your arrival.
wards says.
appreciation of 3–5 percent, and based on time, Edwards says, to have a powerful influ- For more information, visit McKweb.com.
Plus, there is a significant lack of available
constructions starts, consumer confidence and ence on our long-term livability.
land on which it is cost-effective for builders Scan this code with your smartphone to
reorganized credit, she forecasts an 8–10 per- “We need to make a focused, aggressive view our current average wait time.
to build at a more affordable price point. The
cent increase in number of units sold in Lane effort to address our Lane County home- If you’re experiencing a medical emergency, call 911. McKweb.com
land that is available often requires significant
County. During 2014, the median sales prices affordability issues. By increasing the number *Clinical professional is defined as a physician, physician assistant or nurse practitioner.
excavation and greater infrastructure, in- McKenzie-Willamette Medical Center is directly or indirectly owned by a partnership that proudly includes physician owners, including certain members of the hospital’s medical staff.
appreciated by 4.4 percent in Lane County of higher-waged, sustainable jobs in our area,

1 2 OP E N FO R BUSI N ESS | EUGEN E AREA CH AMB ER O F COM M ERC E F E B R U A R Y/ M A R C H 2 0 1 5 | OPEN FOR BUSINESS 13
78582_MWMC_ER_7_735x4_8125c.indd 1 9/5/14 2:51 PM
COVER STORY COVER STORY
ring now where five years ago there was none. comfortable with where the market is going. the significant trends reported in the widely invest in their homes and to feel that there
Lane County “tends to trail the region “We haven’t seen new But “lenders are lending again,” Dingman followed Global Powers of Retailing report “Generally speaking, is a better value,” Lindstrom says. “Oregon is
and country coming out of these recessionary says, and are looking for properties to fund. produced by Deloitte Touche Tohmatsu doing better than it has in a long time.”
periods, and many of the neighborhoods in construction being Terms are attractive and interest rates low. Limited: driving per person is decreasing for the last quarter of 2014, A drag on retail that will continue into
the Eugene-Springfield area won’t be seeing
redevelopment or new development in the
financially feasible “Coming out of this recession, we’ve seen a
lot more cash deals,” Dingman says, where inves-
the tenth year in a row due to telecommunica-
tions, online sales and other online activities.
almost everything in 2015 is lagging resident home construction, as
well as weak wage growth, underemployment
near future,” Dingman says. “But now we are
seeing, as would be expected, building in the
in most sectors. One tors where putting their own cash into property.
Investors are looking at all investment alter-
Retailers will increasingly need to focus on
mobile retailing, which is expected to explode
retail did well, with — workers who must settle for lower wages
or part-time over full-time work — and slow
premium areas, and that will spread as the exception is downtown, natives, including real estate, and “I think real in 2015, when an estimated 83 percent of the exception of home employment growth.
economy continues to rebound and average estate looks attractive and will continue to do Internet activity is expected to be conducted “Although the metrics are improving for
wages increase.” but this has only so,” he says. on handheld devices. electronics, computers, Oregon, Eugene is just slower than Portland,
Probably the strongest indicator of a Despite a disappointing Black Friday and a which has tech clusters. Eugene doesn’t have
rebound is sales of commercial and industrial occurred with sizeable Retail bit of a slump early in 2014, year-end sales has tablets and TVs.” much [industry], and it is trying to expand its
land. Duncan & Brown figures show com- Consumer spending accounts for about forecasters such as the National Retail Federa- urban growth boundary, but that is step one;
mercial and industrial land sales (not includ- help from the city.” two-thirds of the total GDP, so activity in the tion predicting sales growth in December of – Scott Lindstrom then we need to get manufacturing,” Lind-
ing distressed or government sales) dropping retail industry is an important indicator of 4.1 percent year-over-year and overall average Vice President of Operations,
strom says.
current economic conditions. Jerry’s Home Improvement Center
76 percent between 2007 and 2010, and now – Corey Dingman growth in 2015 of 4.1 percent nationally. According to the Oregon Office of Eco-
slowly bouncing back to 66 percent of pre- Partner at Duncan & Brown The nationwide drop in gasoline, averaging Locally, “generally speaking, the last retail, nationally and locally, severe winter nomic Analysis, “Currently, wages in Oregon
Real Estate Analysts $2.13 per gallon in January (the cheapest in
recession levels, and rising. Commercial-only quarter of 2014, almost everything in retail weather stifled results, which is not the case are increasing at nearly 7 percent per year,
sales bottomed out in 2010 and have doubled has passed, with sustained growth and ris- six years, according to AAA), has bolstered did well, with the exception of home electron- this year. The first-quarter lows of 2014 were which is on par with the mid-2000s expansion
since. ing comfort levels by investors and financial a strengthening job market and provided an ics, computers, tablets and TVs,” says Scott inconsistent with the stronger signs of recov- but below the 1990s gains of 8 percent per year.
“In the past two years, we’ve started to see institutions. increase in discretionary income to consumers, Lindstrom, vice president of operations, Jerry’s ery for the rest of the year. Average wages per worker are currently increas-
commercial land sales happening,” Dingman “People are now willing to invest in them- which is expected to boost retail sales nation- Home Improvement Center, and a member of “Interest rates have remained low, un- ing over 3 percent per year, which is slightly
says. “That is a good indicator we are returning selves and their business, with expansion and ally and locally. the Chamber of Commerce board. employment has decreased and home values above the rate of inflation. However, real wages
to normal market conditions.” construction of new facilities,” Dingman says. However, a drop in gas prices may still not Last year, in home improvement and other started improving, leading people to want to have increased less than one half of one percent
Another year of the post-recession period People don’t want to invest when they are un- be enough for retailers to overcome some of

Richard Slaney relaxes


after Joyce Colley does
all the “heavy lifting” to
fulfill his dream of
owning his own airforce!

DREAM BIG What financial dreams


Together, we’ll map a course can we help you achieve?
that can take you where you want to go Richard Slaney
Business Owner

871 Country Club Road in Eugene 96 E BROADWAY EUGENE OR 97401


WWW.SUMMITBANKONLINE.COM 541-684-7500
541.683.2900 | CarterandCarter.com MEMBER FDIC

Securities are offered through Raymond JameS Financial SeRviceS, inc. Joyce Colley
VP Business Client Advisor
member FinRa/SiPc.

1 4 OP E N FO R BUSI N ESS | EUGEN E AREA CH AMB ER O F COM M ERC E F E B R U A R Y/ M A R C H 2 0 1 5 | OPEN FOR BUSINESS 15
COVER STORY
per year since 2000. As economic conditions “Community businesses manufacturing and traded sector, particularly
continue to improve, expectations are that real in the Coburg area, Wanichek says, and multi-
average wages will pick up as well.” are back to making family housing units have also experienced
Real average wages picking up affects con- growth over the past couple of years.
sumer confidence and can drive up consumer investments in their But “we have yet to see the market rebound
spending. for single family houses to pre-recession levels,
facilities, equipment and so I think that has the potential to be a tail-
Finance
“In the financial sector, we’re finally emerg- people as they grow their wind as the economy continues to improve.”
As well, across the region, the manufactur-
ing from one of the worst periods banks have
ever faced,” says Craig Wanichek, president &
companies.” ing job base has shrunk, even though it has
improved since the recession. Companies tied
CEO of Summit Bank. to the national economy have seen improve-
– Craig Wanichek
It’s taken Oregon banks nearly five years president & CEO of Summit Bank ment ahead of the West Coast or locally tied
to recover from the challenges arising from businesses, which tend to lag behind the rest
the 2008–09 massive U.S. economic recession. of the country.
Banks rely on sound asset quality, which is economy has improved, and more financing “It is important to have those higher-pay-
reflected in the quality of their loans and the options are now available for businesses than ing jobs to help the rest of the local economy,”
credit risk associated with these loans. just two years ago. Wanichek says.
Compared with other communities, the “Community businesses are back to mak- “The GDP for the last quarter was very
Eugene-Springfield financial sector was more ing investments in their facilities, equipment strong. With an improved local economy and
fortunate and not as affected by nonperform- and people as they grow their companies, and stronger credit quality, the financial sector will
ing commercial real estate or development part of those investments will be financed reflect the overall community and should have
loans during the recession — in part, because with loans,” Wanichek says. a solid 2015. Ultimately, we are a reflection of
of land use restrictions and lack of available Recently, there has been local growth in the the business community.”
land to develop, Wanichek says.
Eugene Area
Chamber of
Commerce

“We didn’t see a large run up and a bubble


in real estate, so it was tough, but not as Tap into Summit Bank’s
SBA DIVISION.
tough as in other regions,” Wanichek says. “In
2014, most Oregon banks were basically fully
recovered from asset issues, and banks have
returned to profitability.”
During the downturn, however, banks
took a hit. In 2012, 32 commercially char-
tered banks had headquarters in Oregon;
this quarter, the number will drop to 26. No
new banks have been formed, as low interest
Eugene Area
Chamber of
Commerce

rates, increased regulatory burden and low


confidence have investors shying away from
starting new banks.
If 2013 was a stabilizing year, 2014 was
the growth year. Wanichek expects 2015 to
continue the trend of loan growth and stabili-
zation of asset quality, with a resulting increase
in earnings, even as interest rates are expected
to go up by the end of the year. No significant
impact of the increase is anticipated.
While Wanichek expects the financial sector
to show a continued increase in business activity, Ashley Horner Jeff Althouse
there will be no substantial job growth there. SBA Program Administrator Founder Oakshire Brewing
“There is a trend toward investing in tech-
nology to deliver our products and services,” Contact Ashley today!
Wanichek says. ashley.horner@summitbanksba.com
So, banks are back to lending money in the 541.684.7500
commercial sector, where they had been either MEMBER FDIC
hesitant or challenged to make loans. They SMALL BUSINESS ADMINISTRATION DIVISION
have relaxed underwriting standards as the

1 6 OP E N FO R BUSI N ESS | EUGEN E AREA CH AMB ER O F COM M ERC E


NEWS YOU CAn USE Introducing RG Media Lab
A guide to new workplace laws We’ll help your business succeed online.
A new year is upon us, and if employ-
ers haven’t already, it is time to gear up
for changes in workplace laws. After new
For decades The Register-Guard has provided businesses RG Media Lab Services:
state and federal mandates, a (hot-topic) with Lane County’s most trusted and respected advertising • Responsive Website Design
voter-approved initiative and a contro-
versial local ordinance, Eugene businesses
medium. Now we’ve created RG Media Lab to help local • Social Media Management
would be well served to give their current businesses who need to build modern, mobile-friendly • Email Marketing
HR policies a once-over in 2015 to review
and ensure compliance on important new websites and improve their digital marketing. We’ll also • Video Production
and updated regulations.
help you create compelling content that converts your • Secure Hosting Services
Minimum wage
Following Oregon state law, Oregon’s
website visitors into customers.
minimum hourly wage increased 15 cents
to $9.25 on January 1. Currently, state law
prohibits local jurisdictions from enact-
ing minimum wage regulations separate
from the state requirements. Oregon’s
minimum wage is the second highest in
the nation, falling just below Washington
state’s $9.47 per hour rate.
Meet our team !

Paid sick leave


In July, Eugene became the second city allows for recreational marijuana use in 2015 legislative session
in Oregon to enact a paid sick leave ordi- Oregon. Measure 91, passed by voters in While it is still early in the session, it
nance. The ordinance requires all employ- the November general election, allows is likely that several high-profile issues
ers to provide one hour of paid sick leave Oregonians to possess and use cannabis will be entertained in the 2015 legislative
for every 30 hours of work completed by within the state. session. With a strong majority in both
an employee, up to 40 total hours of paid As the drug is still prohibited by the Senate and House of Representatives,
sick leave a year. The ordinance and ad- federal law, employers may still forbid Democrats are expected to push several
ministrative rules allow for an employee to employees from having marijuana in their issues through to the floor that have lost
roll over unused time from one year to the system. However, employers should take a by slim margins the last few years.
next, but there is no mandate for employ- look at their policies and define what they Issues such as a statewide paid sick
Their entire team was delightful to
ers to allow more than 40 hours a year. consider an illegal drug. leave, increases to minimum wage work with and helped us accomplish our
The administrative rules created by the standards, transportation funding and a next steps in the digital world for our
City Manager’s office, with input from ACA employer mandates carbon fuel tax are expected to garner the
community members, allow businesses to Employers of businesses with 100 landscape services. They were very good
attention of state elected officials through-
comply with the ordinance by converting or more employees should have offered out the session.
at helping us articulate our goals and then
all sick and vacation time to paid-time-off employees health care as of January 1, ac- On issues such as paid sick leave, the brought them to life on the Web and in
cording to the Affordable Care Act.
policies, as long as they allow time off to Eugene Chamber of Commerce is paying social media forums.
be earned at the rate of one hour per 30 These employers must offer health care close attention to proposed bills making
hours worked. benefits to 70 percent of their full-time Our new website is outstanding; it’s
their way through legislative committees,
The Eugene paid sick leave ordinance employees this year, with an increase to at as a statewide law may possibly supersede
user-friendly and easy to view on all screen
goes into effect July 1. least 95 percent by 2016. the regulations established after the Eu- types. We are thrilled with the positive
For smaller employers with 50 to 99 gene ordinance passed last July. feedback we have received from both our
Recreational marijuana employees, health care benefits must be For more information on any of the
This spring, Oregon employers will offered to full-time employees beginning current clients and new contacts.
above policy changes, or if you have ques-
want to review and consider revising January 1, 2016. tions about the Eugene Chamber of Com-
workplace policies related to drug test- Those out of compliance will be fined merce’s policy positions, please contact
Ron and Joy Felt
ing and pre-employment screening, as $2,000 per employee, with an exemption Director of Business Advocacy Brittany From left to right: Owners
a new law will go into effect July 1 that for the first 30 employees. Quick-Warner at 541-242-2354. Tyler Mack – Director, Deborah Ramirez – Sales Manager, Jason Miller – Client Services Coordinator,
Melissa Rokaitis – Digital Marketing Consultant, Tyler Robinson – Web Developer
Eugene Area
Chamber of
Commerce

1 8 OP E N FO R BUSI N ESS | EUGEN E AREA CH AMB ER O F COM M ERC E


For a complimentary website analysis for your business, visit rgmedialab.com or call Tyler Mack at 541-338-2291.
BUSINESSNEWS BUSINESSNEWS

Promotions/ Eugene Concert


Choir is pleased to
New Hires announce Mindy
Linder joined the
Photos appear left to right from top. organization as the new
Ninkasi Brewing Director of Marketing
Company has hired during the fall at the top of their 40th
Jon Rogers as the Season 2014-2015. Mindy is one of the KDP Insurance, Inc. has
new Chief Marketing proud co-founders and former steering hired Misty St. Clair as
Officer to lead the committee members of the Arts and an Account Marketing
brewery’s internal Business Alliance of Eugene (ABAE). Manager, Jeryl Coleman FROM THE FOUNDATION TO THE ROOF...
marketing and design. www.eugeneconcertchoir.org as a P&C Account Manager,
www.ninkasibrewing.com and Kelsea Meier as a AND EVERYTHING IN BETWEEN.
Client Services Coordinator.
Kirk Martin State www.kdpinsurance.com DECKING | FENCING | RAILING | DOORS | WINDOWS | MILLWORK | SIDING | TOOLS
Farm Agency has
recently hired Yiran Hershner Hunter, LLP Parr has been providing building materials to homeowners and builders
Zhou, a senior at the welcomes Nicholas M.
University of Oregon, Frost as partner after
throughout the Northwest since 1930. No matter what the project, you
with plans to graduate New Horizons In-Home Care has joining the firm in 2011. can have confidence that you’ll receive the same quality products, service
in June with a major in Business Marketing promoted Anna Rauschert, RN to the He focuses his practice on and expertise that professional contractors have relied on for decades.
and Decision Science. Administrator of the new Salem office and estate planning, business
www.kirkmartininsurance.com hired Chelsea Beecroft as Community succession planning, and other work with
Relations Coordinator for Linn-Benton and individuals and business to develop plans for
FOR DIRECTIONS VISIT WWW.PARR.COM
Lane Transit District Marion Polk Counties. the future.
has hired Roland www.eugeneinhomecare.com www.hershnerhunter.com EUGENE • 4170 West 1st Avenue • 541.345.7277
Hoskins as the Director Mon - Fri: 7:00am - 5:00pm • Closed Sat & Sun
of Administrative Turell Group has Local advanced imaging center, Willamette
Services. He replaces hired Kelli Warner Valley Imaging is pleased to announce that
Mary Adams who as P.R. Manager to its Frankie Zaita has joined the Radiologic
retired in January 2015. marketing team. Kelli Technologic team. With many years of
www.ltd.org has experience as a experience, Frankie will be a strong asset
The Eugene office of news anchor/reporter to an already advanced and solid imaging
Quantum Recruiters Inc. has hired Moss Adams LLP is and all forms of communications. reputation.
Tracie Gibson as president. proud to announce the www.turellgroup.com www.willamettevalleyimaging.com
www.quantumrecruiters.net following new hires and
promotions: Billy Brice, Security Monster has hired Dan Oester
Irene Alltucker has
become a real estate
Maggie Elliot, Taylor as a Sales Manager. Announcements
Jensen, Harvey Wang, and Brad Jones
& Kudos
www.securitymonster.com
broker and joined were hired as Staff. Katherine Baker was
the commercial real promoted to Manager, Brian Burns, Jered
estate company of Souder, Michael Woodmansee, and
Court Appointed Special Advocates (CASA)
Evans, Elder & Brown Tiffany Phillips were promoted to Senior,
has received the following foundation grants
Inc. Most recently Irene was the Capital and Michelle Meador was promoted to
to train and support new volunteer advocates:
Campaign director and Executive Director Regional Sale & Marketing Manager.
Cow Creek Band of Umpqua Tribe of Indians
for the Relief Nursery, Inc. www.mossadams.com
($7,500); Jubitz Family Foundation ($2,500); 
www.eebcre.com Pivot Architecture welcomes new
RBC Wealth Management ($5,000); Taco Bell
WHA Insurance would like to announce partners Kari Turner, AIA, and Kelley
Foundation for Teens ($18,800);  Wells Fargo
the promotion of Nathan Cassube to Howell, AIA, LEED AP BD+C.
($1,500); Mark and Nichol Pendell Rauch
Account Executive. www.pivotarchitecture.com
Fund of the Oregon Community Foundation
www.WHAINSURANCE.com
($322.73);  The Chinn Family Charitable
Fund of The Oregon Community Foundation
Therapeutic
($250); Elizabeth S. Holden Fund of The
Associates Physical
Oregon Community Foundation ($20,000);
Therapy at Crescent
R.W. Family Fund of The Oregon Community
Village has hired Megan
Foundation ($1,000); The Weyerhaeuser
Swift
Giving Fund ($2,000); and The Collins
PT, DPT.
Foundation ($20,000).
www.therapeuticassociates.com
www.casa-lane.org

2 0 OP E N FO R BUSI N ESS | EUGEN E AREA CH AMB ER O F COM M ERC E F E B R U A R Y/ M A R C H 2 0 1 5 | OPEN FOR BUSINESS 21
BUSINESSNEWS BUSINESSNEWS
Lane Community
College Small
Business
Development Center
(Lane SBDC) has
received a rural
business outreach grant from the Small
Business Administration (SBA). The year-
long $47,000 grant awarded on October
1 will help businesses in distressed
communities start, stabilize, grow, and
create jobs. “With this funding, we will be
able to focus efforts in rural communities,
where chambers have been asking for
assistance,”says Megan O’Connor, Lane
SBDC Advisor/Instructor
www.LaneSBDC.com

The Oregon Community Foundation


has granted $35,000 to the Hatch
Nonprofit Incubator Program of NEDCO
(Neighborhood Economic Development
Corporation). “NEDCO’s Incubator
[Hatch] is a promising way to provide
nonprofits with the thoughtful support Wells Fargo officers Cobi Jackson (left), Tracy Curtis (second from right)
they need to do their best work in the and Bernie Kronberger (right) present $25,000 check to Terry McDonald &
community,” says Jeff Geiger, Program Rebecca Larson from St. Vincent de Paul.
Officer for OCF.
www.oregoncf.org
St. Vincent de Paul Society in Eugene Ninkasi Brewing Company LLC. has
www.nedcocdc.org
received $25,000 to support its six new locally-owned independent whole
projects that serve military veterans sale partners Bigfoot Distributing and The
RE/MAX Integrity received the
and their families from Wells Fargo in Odom Corporation.
prestigious Brokerage of the Year
November. As part of their Community
(2014) for the entire RE/MAX Pacific
Support Celebration, $450,000 was
Northwest region, which includes Oregon,
presented to eight nonprofit groups which
Washington, Idaho and Montana.
serve Portland, Salem, Medford, Eugene,
www.integrityhomesonline.com
and many Central Oregon communities.
www.svdp.us
New Horizons In-Home Care has opened
www.wellsfargo.com
a new location at 200 Hawthorne Ave SE,
Ste. E-510 in Salem.
Eugene Youth Ballet, the pre-
www.newhorizonsinhomecare.com
professional performing youth dance
company of the Eugene Ballet Academy,
The Eugene Ballet Company will be
recently received a $2,000 grant from the
presenting Carmen February 14 at
Lane County Cultural Coalition to assist
7:30pm & February 15 at 2:00pm which
in promoting and growing the Northwest
The Sixth Street Grill co-owner Linda Addison shows off their Duck memorabilia. is choreographed by Artistic Director
Dance Festival, April 18-19, 2015. For more
Toni Pimble and will be at the Hult Center
information contact Artistic Director Sara
Sixth Street Grill is celebrating Umpqua Bank was named Oregon’s for Performing Arts. On February 21,
Lombardi at 541-686-9342 or
30 years of business in Eugene by Most Admired Financial Services Eugene Ballet Company and the Board
sara@eugeneballetacademy.org.
arranging a proceeds donation to a local Company for the tenth year in a row of Directors will host Table Dances, their
Ninkasi Brewing Company LLC. was
charity each month of 2015! and the Sixth Most Admired Company fourth annual “fun” raiser event at 5:30
named 2015 Good Food Awards Winner
www.sixthstreetgrill.com across all industries by The Portland pm at the Eugene Country Club. The
for a commitment to produce food
Business Journal. 2015 themes are Sleeping Beauty, Silk
ethically and sustainably. The Vanilla
www.umpquabank.com and Steel, Tommy The Ballet, Rhapsody
Oatis Oatmeal Stout for example uses
in Blue, 7 Deadly Sins, Zoot Suit Riot, La
Madagascar vanilla beans supplied by
Création de Monde and Coppélia. To
local Eugene vanilla distributor, Singing
purchase tickets contact Karen at
Dog Vanilla.
karen@eugeneballet.org or 541-485-3992.
www.eugeneballet.org

2 2 OP E N FO R BUSI N ESS | EUGEN E AREA CH AMB ER O F COM M ERC E F E B R U A R Y/ M A R C H 2 0 1 5 | OPEN FOR BUSINESS 23
BUSINESSNEWS
LiveAble Home Solutions Capitello Wines LLC
New Members www.liveablehomedesign.com www.capitellowines.com

When you join the Eugene Area Willamette Valley Video Tours Edgewater Home Furnishings
Chamber of Commerce, you become www.willamettevalleyvideotours.com www.edgewaterfurniture.com
part of a vibrant and prosperous
community of creative entrepreneurs, Oregon Electric Station NCM Media Networks

Join

forward-thinking innovators and
visionary business leaders.  We’re
pleased to welcome these new
members who have chosen to take
www.oesrestaurant.com

A-1 Commercial Construction


www.a1commercialconstruction.com
www.ncm.com

On Demand Stress Solutions


www.ondemandstresssolutions.com

the Eugene Area advantage of the Chamber’s tools,


resources and expansive network to Atlas Cleaning Services LLC Eugene Concert Choir

Chamber grow their businesses: www.eugenecleaningservice.com www.eugeneconcertchoir.org

of Commerce Veronica Shean Interior Design


www.veronicashean.com
Applied Tax Solutions
www.appliedtaxsolutions.net
Lane Local Foods
www.lanefood.org

Synergy Massage Get Air Eugene Emerald Business Partners


Chamber membership has given us the www.synergymassageeugene.com www.getaireugene.com www.ebpeugene.com
Eugene Area
Chamber of
Commerce

opportunity to build relationships with Heritage Meadows Apartments IDX Business News covers promotions,
other businesses. We’re committed www.heritagemeadowapartments.com www.idxbroker.com hires, awards, business giving and
business news. Email items to
in our partnership with the Chamber Farmers Insurance – Carie L. Allstate-Bart Swanson businessnews@eugenechamber.
in making this region a great place to Majors Insurance www.allstateagencies.com/bartswanson com.
http://www.farmersagent.com/cmajors
live and work. After all, a community
worth living in is a community worth
improving. Wouldn’t you agree?

– Sheryl Balthrop
Gaydos, Churnside & Balthrop, P.C.

541-484-1314
www.eugenechamber.com
2 4 OP E N FO R BUSI N ESS | EUGEN E AREA CH AMB ER O F COM M ERC E F E B R U A R Y/ M A R C H 2 0 1 5 | OPEN FOR BUSINESS 25
LAST CALL BY DAVE HAUSER

5 Airlines/10 Nonstop Destinations/Infinite Connections

Aspirational thoughts for 2015

T
his is the time of year when economists offer their insights into the economic future.
Based on what I’ve been reading, most predict that 2015 will continue to build on the
solid economic progress established in 2014. That’s good, but here at the Chamber, our
focus is local. And therefore, I have pondered: What would make 2015 a great year for
Eugene-Springfield? What would dramatically contribute to the growth of our regional economy and
consequently enhance the livability of our region?

Here are seven news stories I would 4. Construction of the West Eugene bring direct air service from San Jose,
like to read in the coming year: EmX moves ahead toward a 2017 creating connections that support a
1. EWEB and the University of completion date, and business impacts burgeoning technology and start-up
Oregon Foundation complete negotia- are considered negligible. community.
tions that will enable the foundation to 5. After a decade-long growth study, William Shakespeare said, “It is not
move forward with the redevelopment elected officials move ahead with modest in the stars to hold our destiny but in
in the riverfront district. Urban Growth Boundary expansions to ourselves.”
2. RAIN Eugene moves forward increase supplies of job-producing We can make 2015 a great year for
with the development of an entre- lands. our region by working together, focusing
preneurial and innovation hub in 6. Whole Foods moves briskly on accomplishments and making this
downtown. toward the opening of its downtown great place even better.
Eugene Area

3. Legislative leaders compromise on store in March 2016, continuing the


Chamber of
Commerce

sick leave and minimum wage legisla- positive transformation of downtown Dave Hauser is president of the
tion, supporting Oregon workers while Eugene. Eugene Area Chamber of Commerce, a
restricting burdensome local regulations 7. The Chamber and Eugene Airport 1,100-member organization dedicated to
that impede economic progress. construct a package of inducements to promoting a healthy local economy.

2 6 OP E N FO R BUSI N ESS | EUGEN E AREA CH AMB ER O F COM M ERC E


PO Box 1107
Eugene, OR 97440-1107

Strategic
Empowering your business through
knowledge and innovation
At Kernutt Stokes, we don’t just look at one aspect of
your business when determining how to reach your goals.
Warren Barnes and the team at Kernutt Stokes conduct a
detailed analysis of the challenges and opportunities your
business may face, so we can provide you with strategic
insight and effective services. We invite you to work with
advisors who know the right moves to make, even when
the pressure is on.

Contact Kernutt Stokes to see what possibilities we can


find for your business.

Certified Public Accountants & Consultants

1600 Executive Parkway, Suite 110, Eugene, Oregon 97401


541.687.1170 | kernuttstokes.com

WARREN BARNES, MANAGING PARTNER

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