By K. Susan Appleby, SEDCOR

The State of Oregon has developed goals and policies to ensure that Oregon’s land use system provides an adequate short- and long-term supply of land. There is an accelerated effort to develop “shovel ready” sites. A shift in industry has been to traded-sector industries, those that sell their products and service outside the state and bring in fresh dollars to Oregon. This includes warehousing and distribution. The Industrial Lands Task Force, was established in 2003, to ensure an adequate supply of industrial land to meet these demands. Other factors such as adequate housing, schools, water, transportation and other quality-of-life issues also have an impact on how successful Oregon will be.

Mill Creek Industrial Park

The State of Oregon and the City of Salem, have joined together in the sale and development of the Mill Creek Industrial Park (MCIP) as a regional resource. The goal is to respond to the state’s shortage of large, well-located “shovel ready” parcels of industrial land. The plan calls for developing the property which is owned by the Oregon Department of Corrections, over a

15-20 year period.

Mill Creek Industrial Park, is 648-acres of relatively flat land close to I-5 and Hwy 22. The project is on the State Legislature’s Opportunity Site List, with a $10 million loan commitment from the Oregon Economic Community Development Department to fund infrastructure. The new master planned industrial site in southeast Salem is a premier location and the largest undeveloped industrial site along the I-5 corridor.

The two large sites that will be available in Phase I of development offer a unique opportunity for warehouse/distribution firms. A Land Needs Analysis and corporate interviews revealed between the years 2002-2012 transportation and warehousing are expected to grow by 22%. The Northwest has a very limited supply of 100-200 acre parcels. MCIP has a rare combination of elements needed for factories and distribution centers serving clients across the Northwest and California. The phased development will allow for a variety of uses, including heavy and light industrial, business parks and service center.

The Master Plan’s goals are to stimulate economic development and long-term quality of life through the creation of jobs, which provide a range of employment and business opportunities that contribute positively to the regional economy. According to economic estimates, MCIP will create as many as 5,000 new jobs.

A new Urban Renewal District will generate revenue to help pay for the roads, water lines and sewer services needed at the site. These improvements include creation of a new 2.3 million gallon reservoir, widening portions of adjacent roads, and installation of new city water and sewer mains to the property. Urban renewal districts operate by using tax money generated by increased property values to pay for infrastructure improvements. Under the proposal, any increase in property value above the current level would be set aside for use within the district. In this way, it does not create a drain on the general or water and sewer funds.

The City of Salem and the Department of Public Standards and Training, are working together to design and construct water and sewer lines along Aumsville Road to accommodate the first phase of development. It is anticipated to be in a ready-to-build state in August, 2005.

SEDCOR will play a major role in marketing the property. A database has been set up and marketing material has been sent to over 600 real estate brokers and site selectors. Several businesses have already expressed interest in the larger parcels and have toured the property. The site’s size, proximity to I-5 and the city’s intense efforts to make it ready for development are all factors that will help market the property. Attracting a major warehousing and distribution user as early as possible triggers the creative financing plans necessary to get further development underway.

Accomplishments to Date:

This 640-acre parcel of land has been completely master planned, with extensive public input, for a phased industrial park to accommodate a variety of complementary uses. Besides the Master Plan, the following have been completed:

• A Wetlands mitigation plan has been endorsed by all interested parties.

The Wetlands will be mitigated at no cost to the buyer.

• The property has been rezoned as Employment Center (EC).

• An Environmental Level 1 study has been completed with no recognized environmental conditions.

• A Cultural and Archaeological Survey and Assessment has been completed with no known sites.

• An Urban Renewal District has been formed to facilitate the installation of required infrastructure.

• Sewer and water infrastructure for Phase 1B and 1C will be installed by spring 2006.

• A Intergovernmental Agreement between the State of Oregon and the City of Salem detailing the responsibilities of each party has been executed.

Next Steps:

With the objective of having Phase 1B and 1C, ready for development as early as August 2005, the City, State and SEDCOR are hammering out the details of reasonable Covenants, Conditions and Restrictions to apply to the property for the protection of future owners. A package which will detail the expectations, conditions and process for offers and a draft of the boiler-plate of the Disposition Document is being developed. SEDCOR is working in conjunction with the State and City to create and implement a marketing plan to solicit interest in the Mill Creek Industrial Park.

www.cityofsalem.net/~urbandev • www.sedcor.com

City of Woodburn - Preparing for Growth

Woodburn’s Urban Growth Boundary Amendment is based on the results of the City’s Comprehensive Plan’s periodic review. The City proposes to expand the UGB to provide a 20-year buildable land supply and provide for 20-year projected economic growth. The City proposes to expand the UGB primarily to the west and southwest of the existing UGB and to the north of the existing UGB on either side of Boones Ferry Road. Smaller UGB expansions are proposed along Highway 99E at the north and south ends of the existing UGB.

Based on studies, city staff has determined that Woodburn does not have sufficient buildable land within its current Urban Growth Boundary. Population and employment growth in Portland and Salem will create opportunities for economic development in Woodburn and make it an attractive location for businesses. Woodburn wants existing businesses to grow and new businesses to relocate there to provide higher wage jobs for residents. This will also help reduce the need for residents to commute and generate additional tax revenue to help the burdens on schools and other social service. Higher paying jobs will also help attract new residents whose income will contribute to the community.

An analysis of buildable land showed a deficit of 332-acres for industrial land through 2020. Buildable sites in Woodburn are scattered in relatively small lots. These site configurations do not match the type needed for targeted industries. Requirements for the higher-wage industries Woodburn would like to attract are 40-80 acres for large manufacturing and high-tech firms, 20-40 acres for R&D and smaller manufacturing and 4-20 acres for light industrial. Woodburn offers a flat topography (slopes with grades <10%) which is very desirable for these types of facilities.

Expansion of the UGB will add approximately 1,020 gross acres of industrial land and of this total, 433-gross acres or 376-net acres (net acres subtracts floodplains, wetlands, riparian areas and street right of ways). The City Council has approved the UGB amendment and public hearings have been held.

Coordination with county and state officials and economic development agencies has allowed Woodburn to use their resources to create a cost-effective economic development program while avoiding duplicate efforts. Marion County, Mid-Willamette Valley Council of Governors, OECDD, SEDCOR, OMEP and others have all been involved in this detailed process.

The changes that are taking place in Woodburn will increase available industrial land and prepare the city for future development. The Woodburn area is a fast growing community and growth is inevitable.

503-623-2338 or visit www.ci.woodburn.or.us

City of Dallas - A Beneficial Partnership

Regional site development requires putting aside local competition and working to spread the benefits of new investment, jobs and tax revenue across a region. That is exactly what is happening in Polk County, with the Cities of Dallas, Independence and Monmouth and Polk County combining their efforts to bring new jobs into their communities. The three cities are working together to focus on strategies to strengthen the industrial and manufacturing business base with special emphasis on cooperation for maximum benefit to all three partners.

The City of Dallas recently passed an ordinance amending their Urban Growth Boundaries and Comprehensive Plan Map and it has been approved by the County Commission. This will allow Dallas to meet a state requirement that cities reserve enough land to meet projected growth for 20 years. Roger Jordan, Dallas City Manager, stated “It is very important for Dallas to have land available to be included in the State’s “Shovel Ready” inventory.” Dallas is working with the State to finalize Phase 2 Environmental and Wetland delination on 52-acres for certification as “Shovel Ready”.

To accomplish this goal and provide an adequate overall balance of available land, the city determined that there is a need for four light industrial sites (20-acres or larger). This would be suitable for a master-planned industrial park development or a single large industrial user. The proposed 76 acre addition would add three development sites, with the fourth site within the city limits.

As the population grows in these areas, local jobs are becoming increasingly important. The Dallas UGB expansion will improve liveability by allowing residents to work in town, rather than computing long distance to other communities for employment.

Having an economic development strategy is a key step to implementing goals and strategies. The recent addition of Sarah Johnson, as Industrial Redevelopment Manager for the three cities will help employment opportunites keep pace with the increased population. She will develop inventories of the existing industrial businesses and industrially zoned property in each city, facilitate coordination between business owners, property owners and developers to best serve the needs of existing busineses, new businesses and the needs of the community. Johnson’s addition will also allow time for exploration of funding and grant writing, and development of funding for a well-trained and educated workforce for filling new jobs.

503-623-2338 or visit www.ci.dallas.or.us

"Shovel Ready" - Site Certification

Oregon is one of three states (with New York and Pennsylvania) to develop a program that assures prospective businesses requirements are met on a site for construction to begin in 180 days or less.

Certification information maintained by the Oregon Economic and Community Development Department (OECDD) includes documentation about water, sewer, electricity and other utilities available at the site. Local workforce availability, easements and liens, improvements and any state or local development incentives that are offered for the location are included. To earn the “Certified” Stamp, a team of OECDD development officers works closely with landowners, local governments, regional development groups, and the state’s seven economic revitalization agencies. A third-party, private sector verifier serves as final, independent review for the hundreds of documents submitted to the agency in just one application for certification.

Three properties are in the process of certification in Marion and Polk counties (Stayton, Salem - Mill Creek Ind. Park, and Dallas). There are also three Tier 1 sites in each county. After evaluation, a site in designated Tier 1 if they have the potential for entering certification. Currently, the OECDD has more than 150 certification applications underway.

The agency has committed to certifying 35 to 45 sites byJune 2005.

The process as a whole paves the way for business even beyond the certification documents,” said Marty Brantley, OECDD Director. “It sends the message that Oregon wants industry and we are ready to work together to help companies do business here. It also protects the public interest by ensuring that environmental stewardship, land use and community concerns are resolved before a prospect steps onto the property,” he said.

503-986-0123 or visit http://www.econ.state.or.us