The Garner Group

Newsletter List: Central Oregon News Digest, November 2008

Central Oregon News Digest, November 2008

by The Garner Group
Posted 11/17/2008 November 2008
Compiled by The Garner Group Realtors & Development LLC

388 SW Bluff Drive • 2762 NW Crossing Drive • Bend, Oregon
Tel. 541 383-4360 • www.thegarnergroup.com


NEWS ABOUT THE GARNER GROUP

Broker moves to The Garner Group
Kathy Caba is now affiliated with The Garner Group Realtors and Development LLC as a broker. Licensed since 1992, she earned her Accredited Buyer Representative (ABR) certification from the National Assn. of Realtors in 2004. An Oregon native, Kathy is a graduate of Pacific Lutheran University with a degree in communication arts and has lived in Bend for more than 28 years.

October sales elevate The Garner Group to No. 1
The Garner Group completed its tenth month as an independent real estate company as the leading agency in number of Bend residential sales for October, as recorded by the Central Oregon Multiple Listing Service. “We performed ahead of agencies with many more people on the floor, which makes us all especially proud,” commented Wendy Adkisson, Principal Broker. The Garner Group currently has 14 licensed brokers actively involved in real estate sales.

HOUSING

Winter listings bring buyers into focus
Winter traditionally slows the pace of residential sales, but agents at The Garner Group point out that this often distills the market into a richer brew. “It’s not necessarily a good idea to take your home off the market in winter months,” advised Broker Janis Grout. “The people who make the effort to look at homes in cold weather are people who are actively seeking a home to buy.”
    Price was an influential factor driving home sales in Bend and elsewhere as the year entered its fourth quarter. The median price for Bend homes through the first three quarters was $299,000, a 14.3% drop below the comparable 2007 figure, according to Central Oregon Multiple Listing Service statistics.
    But price is not the only consideration in home sales during this slow market cycle. Surveys indicate buyers want more for their money in terms of finishes and appointments. “Empty nesters looking to downsize want to maintain the comfort level and eye appeal they are accustomed to,” advised Broker Jody Tuttle.

County loan aids La Pine senior housing
Deschutes County commissioners have okayed a $102,500 loan to Pacific Crest Affordable Housing LLC that will allow the company to proceed with construction of Little Deschutes Lodge, a 26-unit senior housing complex in La Pine. The project also will receive low-income housing tax credits and a $500,000 grant from HUD.

Builders work side by side in Habitat ‘race’
Good-natured competition between two local builders produced two homes for Bend Habitat for Humanity in a single September day. Stemwalls were in place and materials were precut, allowing workers from SolAire Homebuilders and Dunn Development & Construction to raise and enclose the homes in eight hours and 50 minutes, ready for finishing by the recipients.

ECONOMY

Economic slump should reverse in 2009
“You live in the best place in the country. You should feel somewhat upbeat because of that,” Dr. Thomas P. Potiowsky told an audience of about 600 at the Bend Chamber of Commerce economic forecast breakfast Nov. 6. He said to expect no sustained upturn in the economy until mid-2009 at the earliest.
    Focusing on statewide economic issues, the Oregon state economist said the state generally follows national business trends with local variations causing the timing to shift. Housing market fluctuations are less severe than the extreme highs and catastrophic lows experienced by states like California, Florida and Nevada. Recovery will require housing demand to catch up with supply and the flow of capital to be restored.
    Central Oregon population will continue to grow, he predicted. The rate will be slower than the dramatic increase in 2000 through 2007 but growth will remain above average compared with the rest of the country. Statewide job losses will continue in 2009 but will rise beginning the following year. “The good news is that we are going to get out of this mess,” Potiowsky said.

County tax measures fail
Deschutes County voters rejected bond and levy measures based on property taxes across the board in the November general election except for a rural fire protection district levy in La Pine. Central Oregon Community College officials are considering another attempt next May to gain voter approval of a $43.75 million bond issue to finance a health and sciences center and branches in Madras and Prineville. Statewide voters removed the 50% voter turnout requirement for tax-based measures in May and November elections, lowering the hurdle.

MEDIA RECOGNITION

Bend: one of the best places to raise a family
Business Week magazine chose Bend as Oregon’s “best affordable place to raise your kids.” The second annual list, posted Nov. 7 on Business Week.com, selected one city from each state on the basis of median family income, schools, household expenditures, crime rates, air quality, job growth, cultural amenities and diversity.

Bend gets double dose of fame
A laudatory review of Bend’s attractions that originally appeared in the October issue of Newsweek Inc.’s Budget Travel magazine got additional exposure when CNN.com picked it up later. “In Bend, Portland’s quirky-chic cousin, you can live the high life and get back to nature,” the subhead declared as an introduction to the magazine feature, a comprehensive accounting of Bend cultural, culinary and recreational attractions.

Metro area third on ‘top performing’ list
Bend scored third among metropolitan statistical areas in its size class on this year’s Milken Institute/Greenstreet Partners list of top-performing cities. The Bend MSA—all of Deschutes County—ranked first among small cities (235,000 and below) on last year’s list but traded places this year with Midland, Tex. Ratings were indexed to high-tech and overall job growth, wage and salary growth, high-tech GDP growth and concentration of high-tech businesses.

Central Oregon fame spreads to Europe
One episode of a 15-part television series about Oregon, to be aired next year in Europe, will focus on Central Oregon. A British film crew wrapped shooting in September, featuring golf, whitewater rafting, winter sports and culinary offerings. Central Oregon Visitors Assn. paid $33,000 for the opportunity and will get to keep stock footage for promotional use.


LAND USE

Bend UGB process grinds on
Movement toward expanding the area inside Bend’s urban growth boundary continues slowly. The proposal finally recommended to the Bend city council by the city’s planning commission late in October would add about 6,000 acres in parcels distributed around the perimeter of the current city limits. City council members and Deschutes County commissioners ended a joint work session Nov. 3 by expressing a need for more study and public input. The city council meets for another work session Nov. 17 and a public hearing on the latest draft is set for Nov. 24.

County tackles new land use plan
With Deschutes County population projected to reach 266,238 in 2030, officials are initiating an overhaul of the county’s comprehensive plan adopted in 1979. Traffic congestion and availability of buildable land are two issues. The county and ODOT are developing a traffic model to predict residential, employment and recreational impacts on county roads. The county also will take another look at undeveloped land suitable for residential use. The process will extend into 2010.

PROJECTS

Second Juniper Ridge site approved for sale
Bend city council members approved sale of an eight-acre parcel in Juniper Ridge to Suterra LLC for $2.4 million. The Bend biotech company makes pheromone traps, lures and associated delivery systems for insect control. Suterra plans a $20-25 million headquarters, production and R&D campus. Suterra and the nearby Les Schwab Tire Centers headquarters are the only two Juniper Ridge sites approved by ODOT pending resolution of traffic issues surrounding the Highway 97/Cooley Rd. intersection.

State backs large-scale industrial park in Redmond
State-owned land at the south edge of Redmond may become one of the few industrial sites in the West offering parcels of 100 acres and larger. The State Land Board wants to develop 945 acres obtained from the Bureau of Land Management as part of a settlement over land and school funding issues dating back to Oregon’s statehood. The project will involve the state, city, county and private sector participants and include a site for a new Oregon National Guard armory. Redmond will need to annex the property and absorb it into the urban growth boundary.

Zone change greenlights mixed-use project
The Bend city council approved a zone change paving the way for Proterra-Bend II LLC to build a mixed-use development on the site of the former Mt. Bachelor park-and-ride lot in southwest Bend. Shops, offices and condos are planned for the location. The company previously agreed to underwrite over $960,000 in street improvements in the general area as a condition of approval.

Fuel cell maker expands into new building
Aircraft Rubber/Fuel Safe Racing Cells has consolidated manufacturing, R&D and administrative functions into a new 92,000-sq ft building on a 11.3-acre site in Redmond. The company makes rubber fuel containment products for aircraft, military and motor racing applications. SunWest Builders was general contractor for the $6.4 million project.

Redmond industrial park opens
Dedication ceremonies in September marked the opening of Antler Industrial Park on the east side of Redmond by Independent Development Corp. of Bend. Phase one contains 13 one-third and one-quarter acre lots. The first buyer, Stewart’s Fire Fighter Food Catering, plans a 7,200-sq ft building. The project was initially named High Desert Business Park.

New St. Francis church under construction
Summer 2009 will see completion of the new St. Francis of Assisi Catholic Church on NE 27th St. in Bend. The 16,000-sq ft structure will have twice the capacity of the current church near downtown, which will be retained by the parish. The new church joins a 60,000-sq ft parish center and school on the 27th St. site.

Bond markets stall new Redmond city hall
Construction of Redmond’s new city hall may be postponed until the bond market improves. City council members are about to select a final design but acknowledge that the initial completion target of 2010, the city’s centennial, may not be feasible. The building and a new Centennial Park across the street are estimated to cost $12 million. Reserves set aside for part of the project may be shifted to the passenger terminal expansion under way at Roberts Field.

Redmond water park floats to 2012
Plans to build an enclosed water park and condo complex near the Deschutes County Fair & Expo Center in Redmond have been rescheduled. The city has extended the construction deadline until 2012 to allow developers time to weather current financial markets. The $120 million project was initially poised to open in 2010. Zoning and location issues caused delays early in the project’s timeline.

RETAIL

It’s like golf, only for fly fishers
The Orvis Co. Inc. opened its first Oregon store in Bend’s Old Mill District late this summer and this fall paired with the Old Mill District to create an 18-station fly fishing course on the nearby Deschutes River. Said to be the first of it kind in the nation, the Orvis Old Mill Casting Park will offer various casting challenges. Each station will have a par score.

Gottschalks opens in Bend
Gottschalks, the California-based department store chain, opened its 55,000-sq ft Bend store in October. Featuring housewares and fashions, the store anchors Pioneer Crossing mall on the former site of Jake’s Truck Stop on S. 3rd St. Gottschalks operates 61 stores in six western states.

Larger Sisters market takes on new look
Ray’s Food Place has moved into a new location in the new Outlaw Station retail center at the northwest edge of Sisters. The new market measures 43,500 sq ft, 50% larger than the old one. The old quarters may house a new Bi-Mart discount department store.

North, south Redmond retail flourishes
The north end of Redmond is growing as a business district anchored by the Wal-Mart Supercenter and Home Depot stores. New or on the horizon:
• Sleep Inn & Suites, a $11 million, 72-room hotel opened in October with an adjacent building housing a conference center and Canyons Restaurant & Grill scheduled to follow in November.
• RedRock Center, adjacent to Wal-Mart, will initially accommodate a Sonic Drive-In, Panda Express restaurant, LibertyBank branch and a car wash.
Redmond south of downtown is represented among current projects by Big 5 Sporting Goods and Dollar Tree stores and an 11,000-sq ft expansion of the Shops at the Old Fair District.

ENERGY

Solar grid research project taps Bend company
PV Powered Inc. has been selected by the US Department of Energy and Sandia National Laboratories to participate in the $24 million Solar Energy Grid Integration System. The Bend solar inverter manufacturer will lead a team including Portland General Electric and Northern Plains Power Technologies that could receive up to $5 million in a competitive program to accelerate the development of advanced solar electric technologies.

IdaTech fuel cell technology goes to India
IdaTech LLC of Bend will supply up to 30,000 5-kW fuel cell generating systems to ACME Group, a global wireless telecom infrastructure company headquartered in Gurgaon, India. IdaTech will deliver 10,000 systems in 2009 and 2010 from a joint venture manufacturing facility in India.

Chemical reclamation plant to apply Bend company’s technology
InEnTec LLC of Bend (formerly Integrated Energy Technologies) and Lakeside Energy LLC of Chicago are engaged in a joint venture to build a commercial gasification plant at Dow Corning’s Midland, Mich., facility. The plant will convert hazardous waste and chemical residues into aqueous hydrogen chloride and clean synthesis gas to be re-used by Dow Corning. Lakeside Energy is providing up to $150 million in equity for the project.

Geothermal permits sought for Newberry project
With test drilling under way near Newberry National Volcanic Monument south of Bend, Davenport Power foresees an eventual 20 to 30 geothermal wells supplying steam to three or four power generating plants. Specific locations have not been determined, but the company is initiating what promises to become a lengthy state and federal approval process. Davenport has a contract to supply 120 mW annually to San Francisco-based Pacific Gas & Electric Co.

Feds identify potential Central Oregon geothermal sites
The US Department of Interior has proposed opening more than 4.6 million acres of public land in Central Oregon to geothermal energy exploration. Officials say geothermal sites in the West could supply 5,540 mW of new power by 2015 and twice that amount by 2025. Central Oregon locations identified are Newberry Caldera south of Bend and Three Creek Butte, Trout Creek area and Three Sisters area southwest of Sisters.

Wickiup hydro project proposed
Symbiotics LLC, based in Logan, Utah, proposes to convert the Wickiup Dam spillway, near La Pine, into a power generating station with an installed capacity of 7.15 mW. Obtaining necessary permits will be a lengthy process, at minimum allowing construction to begin in 2012 with completion the following year. Numerous environmental concerns relating to stream flow, temperature, scenic impact and wildlife habitat must be addressed.

Grant underwrites canal piping project
Swalley Irrigation District has been awarded $1.4 million in state lottery funds to finish piping its main canal in Bend. This will extend the piping project to 5.1 miles. While the principal reason is to eliminate water lost from canals through the region’s ubiquitous lava rock, pressurized water will also supply a small-scale hydroelectric station north of Bend.

DESTINATION RESORTS

Crook County freezes resorts
As expected, Crook County has suspended development of new destination resorts for the time being. Repealing the current destination resort map, as requested in a May advisory ballot measure passed by Crook County voters, freezes the process for three years. Current resorts—Brasada Ranch, Remington Ranch and Hidden Canyon—are not affected, nor is the proposed Crossing Trails resort that has received preliminary planning commission approval.

Resort regulation: the price of popularity
Central Oregon’s destination resorts are under the microscope at state and county levels as officials ponder rule changes that could redefine their location and character. The state Land Conservation and Development Commission is likely to ask the Legislature for more rulemaking authority, citing concerns over density, wildlife habitat and availability of resort services. Deschutes County officials, studying the current destination resort map, are anywhere from six to 18 months away from decisions about additions, deletions and zoning. Officials at both levels may impose stiffer regulations on the availability to the public of transient resort facilities.

Thornburgh passes approval milestone
A Deschutes County hearings officer approved the proposed Thornburgh Resort west of Redmond in October. Appeals are likely, as the 1,970-acre resort has been a lodestone for opposition from preservation groups and some neighboring property owners. The first phase of development will include 300 single-family homes, 150 overnight units, a golf course and clubhouse. The eventual plan is for 950 homes, 475 overnight units and three golf courses.

Sunriver mall project faces hurdles
Redevelopment of the aging Sunriver Village Mall with a $200 million retail and residential complex will still occur, owners say, but not as soon as first expected. Appeals, litigation and dehydration of credit markets are stalling the project, which would convert the 16.5-acre outdoor mall site into a town center containing condos, a hotel and a retail component.

TRANSPORTATION

Air passenger traffic count decreases
Passenger volume is slowing at Roberts Field in Redmond as a reflection of the economy. Boardings in October, at 18,728, were 11.3% below the same month a year ago. Monthly figures have been below 2007 levels since July. The 10-month total for the year, at 209,835, remains 2.9% above the comparable 2007 figure. Allegiant Air began non-stop semi-weekly service between Roberts Field and Phoenix-Mesa Gateway Airport in October.

Air terminal expansion on schedule
The first phase of the $40 million passenger terminal expansion at Roberts Field—the 136,000-sq ft building itself—is on track for completion in April or May, according to reports. Funding is in hand for the first phase but city officials are keeping an eye on bond markets before proceeding with a $21 million bond issue for the complete project, which will include a new arrival area adjacent to the terminal building. The project was scaled back in November by reducing the number of boarding gates to six from eight, trimming $600,000 from the cost.

County, city eye Bend airport differently
Bend Municipal Airport is owned by the city but situated outside the city limits in unincorporated Deschutes County. This presents city officials with a dilemma. They see the airport and its on-site businesses—including two aircraft manufacturing plants—as an economic development engine that contributes $570 million a year to the local economy and should be fueled to stimulate growth. But they must play by county rules. A city proposal to create an urban renewal district to attract businesses and fund improvements was nixed in September by county commissioners, who feared tax breaks would take away from county services elsewhere. Meanwhile, the city will update its master plan for expansion of the airport, an essential element of any future federal grant requests or discussions with the county. This will take about a year.

City, state still at loggerheads over moratorium
Highway traffic at Bend’s congested north end remains an issue as city and state agencies struggle for a solution that will relax ODOT’s iron grip on development impacting the Highway 97/Cooley Rd. intersection. The city proposes to raise $50 million from businesses through traffic impact fees and system development charges, to be shared between the state’s more complex reconfiguration of Highways 20 and 97 and surface street improvements that would draw traffic away from Juniper Ridge. ODOT is trudging through a process that will winnow three major highway redesign alternatives to one, which with environmental impact studies will take another year. Right-of-way purchases could begin in 2010.
 
Deschutes Junction rail overpass ready for bids
Deschutes County will invite bids late this year on a railway overpass that will connect Deschutes Market Rd. with the Highway 97 overpass to Tumalo Rd. The $6 million project will take about a year to complete.

PARKS AND RECREATION

Big park SDC raise postponed
A scheme to roughly double Bend Metro Park and Recreation District system development charges has been tabled until next year. The rate for a single-family home would jump to $7,240 from $3,507 and the index used to set future fee levels would be altered. Public hearings will be held. The district plans $188 million in new projects over the next 12 years.

TOURISM

Survey: average Bend visitor spends $96/day
Some elements of a survey conducted last summer among visitors to Bend have been revealed by Visit Bend, the tourist and convention bureau. Most visitors came from elsewhere in Oregon (40%, followed by California at 17% and Washington at 12%). Outdoor recreation was the biggest draw (56%). Dining was the most popular activity (54%, followed by hiking and trail running at 51%, shopping at 46%, and biking at 29%). The average party of 3.7 people stayed an average of four nights and spent $1,020, about half for lodging and the rest for food, drinks, recreation, entertainment and shopping. The survey report, complete by February, will be used by Visit Bend to help focus marketing efforts. Tourism contributes an estimated $571 million annually to the Bend economy.

Visitors boost amphitheater attendance
Ticket sales for the 2008 Bend Summer Concerts series at the Les Schwab Amphitheater were 15% above 2007—34,977 versus 30,355. The average attendance per show increased 4.7%. People living outside the region purchased 62% of the tickets in 2008, up from 42%. The season’s top headliner was Brooks & Dunn, followed by Sheryl Crow and Death Cab for Cutie. The amphitheater’s yearly attendance record was set in 2003, when 44,369 tickets were sold.

EDUCATION

Area students score well in state tests
Students in Bend-La Pine and Sisters school districts exceeded statewide averages in reading, writing and math in Oregon report card results released in September by the Oregon Department of Education. Redmond students beat the state averages in reading. The Oregon Assessment of Knowledge and Skills tests are administered to elementary students in grades 3 through 8 and high school sophomores.

Charter high school may open in Redmond
A proficiency-based charter high school may be in the works for Redmond. The school board is considering a proposal for establishment of the Redmond Proficiency Academy, which could open as early as January with nine teachers and two administrators. Between 50 and 100 students would work on individual, flexible schedules. Initial funding would come from state and federal grants. While not part of the district, charter schools require district approval under Oregon law.

COCC campus center to open in April
The new Central Oregon Community College campus center, currently under construction, is expected to be ready for occupancy by next April. The two-level, 30,665-sq ft building will cost $10 to $11 million and house a dining hall, café, game and recreation room, TV lounge, Central Oregon Symphony rehearsal hall and a variety of offices.

TGGLOGO2.jpg    388 SW Bluff Dr., Bend, OR 97702
    2762 NW Crossing Dr., Bend, OR
    Tel. 541 383-4360
    www.thegarnergroup.com

541 383 4360 | info@thegarnergroup.com

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