ANNUAL REPORT 2016

CELEBRATING

20YEARS

Tillamook County Quick Facts

By: Shawna Sykes, Workforce Analyst Oregon Employment Department Research Section Phone: (503) 396-7355 E-mail: Shawna.L.Sykes@oregon.gov Web site: www.QualityInfo.org

Your Local Employment Department Office Is Located At: 2101 Fifth Street Tillamook, OR 97141 Phone: (503) 842-4488 Fax: 503-842-8857

7/21/16

About 62% of the county’s population lives outside of the incorporated areas. 0

5,000

10,000

15,000

20,000

25,000

30,000

2000 2002 2004 2006 2008 2010 2012 2014

Tillamook County Population2000 - 2015

Population has grown by 1,428 people (6%) since 2000.

Source: PSU Population Research Center, July 2015 certified estimates.

24,262 25,690

Tillamook County Cities PopulationBay City: 1,320Garibaldi: 790Manzanita: 620Nehalem: 280Rockaway Beach: 1,335Tillamook: 4,900Wheeler: 405Unincorporated areas: 16,040Source: PSU Population Research Center, July, 2015 certified estimates.

590

548

171

77

68

56

14

-109

Unincorporated areas:

Tillamook:

Bay City:

Nehalem:

Rockaway Beach:

Manzanita:

Wheeler:

Garibaldi:

Unincorporated Tillamook County Has Added More Residents Than the City of Tillamook Since 2000

Source: PSU Population Research Center, Population Change from 2000 to 2015.

Geography: Northwest Oregon, covers 1,125 square milesAverage Temperatures: January 42.2°, July 58.2°Annual Precipitation: 90.9"2015 Population: 25,6902015 Civilian Labor Force: 11,3142015 Average Number of Unemployed: 7812015 Average Number of Employed: 10,6612015 Average Unemployment Rate: 5.8%2015 Average Wage: $35,3362015 Average Nonfarm Employment: 8,8502014 Total personal income: $927 million2014 Per capita personal income: $36,564

19 and under22%

20 - 34 years13%35 - 54 years

24%

55 - 74 years32%

75 and over9%

2015 Population by AgeTillamook County has a smaller percentage of residents under 35 years old and a much higher percentage of residents 55 and over than Oregon statewide.Source: PSU Population Research Center, 2015 Certified Estimates.

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FACTS ABOUT TILLAMOOK COUNTY

2016

This year marks the 20th anniversary of the EDC. It was formed by an Inter-Governmental Agreement between the major organizations that support the local economy including our incorporated cities, ports, public utilities, the County Board of Commissioners and the community college. But, the true life blood of our county’s economy is our small business community. These are the people who work tirelessly in their stores, on their farms, and sometimes in the basement offices of their own homes. Tillamook County is truly a place that thrives on the dreams of its entrepreneurs. The past year has witnessed substantial change in both the direction of the organization and the people who manage it. It has been a life-altering experience for me to lead the EDC into its next 20 years. I have learned to value the experience of living in a rural environment surrounded by breathtaking natural beauty and a sincere sense of what it means to be a part of a real community. I invite you to experience Tillamook County whether you choose to stay for a week or for a lifetime.

EDC StaffMike Cohen, DirectorLaura Gruenewald, Office Support Specialist

Visit Tillamook Coast StaffNan Devlin, DirectorSusan Moreland, Marketing AssistantAmy Blackburn, Accountant for Visit Tillamook Coast and EDC

2016 EDC Board of DirectorsMichele Bradley, Chair (Port of Tillamook Bay)Doug Olson, Vice Chair (Douglas NW Properties)Tammy King-Crossley, Secretary/Treasurer (Umpqua Bank)Mike Bever (Tillamook County Creamery Association)Garry Bullard (City of Manzanita)Ed Gallagher (Private Citizen)Connie Green (Tillamook Bay Community College)Mark Labhart (Tillamook County Commissioner) Ray Sieler (Tillamook People’s Utility District)Suzanne Weber (City of Tillamook)

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FACTS ABOUT TILLAMOOK COUNTY

Laura

Susan

Amy

Mike

Nan

2016

LETTER FROM THE DIRECTOR

WE THE PEOPLE

To facilitate and lead Tillamook County’s economic development by enhancing opportunities for business retention and recruitment, infrastructure development and for the general economic betterment of its citizens.

Goals -

1. Be the strategic driver for economic vitality in Tillamook County ~ Communicate, promote, and partner with local, state and federal entities ~ Actively engage in infrastructure improvements such as transportation, housing and schools ~ Secure long term economic viability of the EDC mission

2. Retain, expand and create local business opportunities ~ Connect local businesses to financial and other critical resources ~ Encourage entrepreneurial development of nascent businesses particularly including minority and younger demographics ~ Actively engage with agriculture and natural resources employers ~ Grow and expand small business specifically related to the tourism industry

3. Recruit industrial and commercial business into Tillamook County ~ Create a “Red Carpet” team to be available to proactively support recruitment efforts ~ Research target industries for “best fit” scenarios

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2016MISSION AND GOALS OF THE EDC

The overall mission of the EDC is to lead Tillamook County’s economic development by enhancing opportunities for business retention and recruitment and infrastructure development. The EDC is a strong partner to many other organizations and industries with overlapping purposes.

In 2016, the Board of County Commissioners formed the Tillamook County Housing Taskforce. This group has been charged with creating a plan to secure more and better housing for the county’s residents in all income demographics. The EDC maintains a strong presence in this effort as the lack of adequate housing directly affects the ability of our businesses to attract new employees from outside the area. The taskforce has hired a consultant for Phase 1 of the project with the expectation of the formation of a true action plan by the end of the year. The EDC serves in an advisory capacity on the board of the Tillamook County Futures Council. This body was formed under the direction of the County Board of Commissioners with the purpose of providing a long-range strategic vision for the county.

The EDC supports the dairy industry which is overall the largest employer in the county. The Tillamook County Creamery Association (TCCA) is a cooperative association of over 100 dairy farms and is famous world-wide for premium quality cheeses and other dairy products. The cheese factory itself welcomes over a million visitors a year making it one of the most visited sites in all of Oregon. The Nehalem Valley Farm Trust (NVFT) was formed as a 501(c)(3) not-for-profit dedicated to preserving farmland in northern Tillamook County, increasing local food production with an emphasis on sound agricultural practices that will preserve the sustainability of our food supply. The EDC strongly encourages the efforts of small scale farmers through this endeavor.

Forestry has been a staple industry in Tillamook County for many generations. The Tillamook State Forest alone comprises over 364,000 acres. Sound harvesting practices provide for a balance between economic sustainability and environmental responsibility.

The seafood industry is an important economic driver for the county. The EDC has strong bonds with fishermen that bring a bounty of the finest seafood available anywhere. Due to a fortunate merging of freshwater streams into a shallow Pacific Ocean inlet, Netarts Bay is the perfect habitat for the finest oysters in the world. Tillamook County’s highways of rolling streams are home to many varieties of salmon.

The EDC is a central hub for all of the groups that move our economy forward.

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2016 COMMUNITY OUTREACH

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2016ECONOMIC IMPACT OF THE EDC

In fiscal year 2016, the EDC was directly responsible for $1.3 million of new investment into the economy of Tillamook County. This investment was in the form of new loans through the EDC’s Revolving Loan Fund program in conjunc-tion with additional funding from conventional lenders, private investors and SBA-backed loans. The result was the creation of at least 12 new FTE jobs and the retention of 9 others.

A total of 85 businesses received some type of assistance from the EDC in cooperation with the Small Business Development Center. This endeavor encompassed a wide array of business segments which reflect the diversity of the business community in Tillamook County.

 

Agr and Nat Resources

16%Construction

3%

Manufacturing11%

Wholesale Trade5%

Retail24%

Transportation2%

Finance3%

Prof Services11%

Health Care5%

Arts and Recreation20%

BUSINESSES ASSISTED BY MARKET SEGMENT

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20162016SUCCESS STORIES

SHELTERED NOOKMark and Dee Harguth are not your typical owners of a B&B. They believe their patrons want to experience the beautiful Oregon Coast in a way they will remember for a lifetime. That’s why they invested hundreds of thousands of dollars, with the assistance of the EDC, to make that dream a reality. In the Spring of 2016, sheltered Nook added six “tiny home” dwellings and Disc Golf to their property. The B&B also boasts easy access to Kilchis Point Wildlife Reserve with towering cedar trees. Just to add to the experience, breakfast is made with fresh eggs from their own free-range chickens.

PACIFIC TAXI SERVICENobody knows their way around Tillamook County like Dan Hettenbach. He is the owner of Pacific Taxi Services and has been a lifesaver for those needing transportation throughout the county and to hospitals and PDX Airport “over the hill”. Pacific Taxi also provides service to residents that need groceries or critical delievery of prescriptions. The EDC assisted in the financing of a new, more efficient vehicle so that the service could be expanded and operate at a higher profit level.

Hard work is nothing new for Naveen and Nidhi Malhotra. After years of saving and adapting to their new life in the United States, they were finally able to fulfill their dream of having their own retail store in Netarts. The previous owners sought retirement and the community desperatley needed this establishment to remain open. With assistance from the EDC, Bayside Market & Deli can prosper with a new generation of ownership and an expanded product line with longer hours of operation. It is perhaps the only location in Tillamook County that residents and tourists alike can enjoy authentic Indian Cuisine.

MALHOTRA’S BAYSIDE MARKET & DELI

HEADING 1, COLOR ADDED

2016THE REVOLVING LOAN FUND

In 1996, the EDC was the recipient of a grant from the USDA to provide micro-loan assistance to displaced forestry workers that might be seeking funding to start new businesses in Tillamook County. What was originally $300,000 grew to over $400,000 in total assets. Over the following decades as the initial loans were repaid, the funds were redistributed to other businesses for other purposes.

The Revolving Loan Fund (RLF) fills a critical gap in funding for entrepreneurs. In this post-recession financial climate, nascent businesses and those with less than 2 years of operations have almost no chance of receiving conventional financing. Even for those that do, the risk of leveraging most of their personal assets can put them in a precarious situation if the worst should occur.

The RLF is available to both nascent and existing businesses with limits of $20,000 and $30,000 respectively.

While some of the requirements of conventional lenders do pertain such as business plans and financial projections, the EDC’s Revolving Loan Fund is designed to be flexible. Stringent requirements regarding owner equity and credit are deliberately relaxed with emphasis on other attributes such as a willingness to work hard and the value of the business to the community it’s serving. The ability of the EDC and its loan committee to evaluate the entirety of an applicant’s potential to repay their loan has paid off over the years. The rate of default has historically remained at or below the rate of default of conventional lenders.

Today the RLF has eight active outstanding loans of which five were originated just this year. Total outstanding principal at the end of fiscal 2016 was $207,082. Funds available to be loaned stood at $220,336.

“Because of the EDC’s loan fund, I was able to purchase a wireless company that benefits some 150

customers in Tillamook County. I can now start upgrading the aging equipment to expand service as

well as improve it. The RLF is the best method I have seen for assisting a small business to expand to

become a bigger business which benefits us all.”

Jesse Neu

Owner, Vanir Broadband

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20162016EDC RLF ASSETS

ASSETSCurrent Assets

Columbia Bank Operating Account 220,336.22$

Total Current Assets 220,336.22$

Receivables (Outstanding Loans)Loan 12-01 9,880.55$ Loan 14-01 27,273.52$ Loan 14-02 46,767.79$ Loan 16-01 11,937.22$ Loan 16-02 19,099.56$ Loan 16-03 29,602.35$ Loan 16-04 29,602.35$ Loan 16-05 30,000.00$

Late payments 2,918.58$ Total Receivables 207,081.92$

TOTAL ASSETS 427,418.14$

Statement of EDC Revolving Loan Fund Assets

As of June 30, 2016

“The Revolving Loan Fund has been essential to our ability to open the Tillamook Coliseum

Theater. It has given us the flexibility, support, and capital to be able to not only weather

our first year but to flourish. We are so thankful that there are resources like the EDC to help

people make their business dreams a reality.”

Shiela Zerngast

Owner, Tillamook Coliseum Theater

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Port of Garibaldi Visitor Information Booth

City of Manzanita Manzanita Visitor’s Center

City of Tillamook Bay City Arts Center Hoquarton Historical Interpretive Center

North County Recreation Center Auditorium Renovation

City of Tillamook Latimer quilt & Testile Center Building Preservation &

Enhancement

City of Rockaway Beach Tillamook Coast Old Growth Forest Preserve

City of Garibaldi Garibaldi Community Space Renovation

Tillamook County Kilchis Point Bathroom

Tillamook County Cape Kiwanda Master Plan

Nestucca Fire & Rescue/Cape

Kiwanda Stakeholders

Nestucca Fire Beach Access Improvement

Phase 1 A total of $1.62M was awarded to 22 organizations in fiscal year 2015-2016

2016

While the transient lodging tax (TLT) has been collected since January 2014, the county’s tourism oragnization (Visit Tillamook Coast) began operations in January 2015. During fiscal year 2015-2016, a new 5-year intergovernmental agreement was signed between the Tillamook County Board of Commissioners and the Economic Development Council. The new IGA provides that 55% of the 70% allotted for tourism facilities and marketing remain with the county to fund facilities development. The remaining 45% will be transferred to Visit Tillamook Coast for tourism marketing and promotions. Over the five years, funding will eventually be shared equally in a 50-50 split, in increments of 1% each year.

In its first 18 months of operation, significant activity has occurred to build tourism as a county economic driver and to support community efforts to improve tourism marketing and facilities.

One of the benchmarks of success is reported each year in the Dean Runyan report, which is commissioned by Travel Oregon. This report is issued in late April or early May each year and is calculated on a calendar year basis. For Tillamook County, year-over-year results are:

~ Direct and destination spending in 2014 was $221.1 million. In 2015, direct and destination spending was $229.4 million, an increase of $8.3M, or 3.8% (Clatsop increased 4.4%; Lincoln increased 4.4%)

~ Direct employment as a result of destination spending grew from 2,150 in 2014 to 2,190 in 2015 - an addition of 40 employees

A second brand awareness study will be conducted in September 2016 to measure the public’s awareness of the Tillamook Coast and attributes associated with the county. The first study was conducted in September 2014. Visit Tillamook Coast is sponsoring high-level programming on Oregon Public Broadcasting (Nature and Oregon Field Guide) and on KGW-TV (Grant’s Getaways and Northwest Backroads) 230+ articles have been published in 18 months on Tillamook Coast activities and it is expected that branding awareness will increase.

VISIT TILLAMOOK COAST

Tourism Facilities Grants

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City of Rockaway Beach Facilities Restoration for the Historic Caboose & Train Depot

TAPA ADA Bathroom

City of Tillamook Bike & Skate Park

Port of Garibaldi Event Center Tent

Nestucca Valley Community Alliance 60 pace parking lot

Kiwanda Community Center 2000 sq foot remodel Kiawanda Community Center

Tillamook Forest Heritage Trust Salmonberry Trail Planning

City of Rockaway Beach Kitchen

Tillamook Forest Center Pavillion

City of Tillamook Carnahan Boat Dock

Tillamook County Parks Cape Kiwanda Beach Access

Tillamook County Cloverdale Wayside

Tillamook County Salmonberry Project Manager

Scovel Racing

Lucky Bear Soap

Three Arch Inn

Association of NW Steelheaders

Tillamook Chamber of Commerce

Twin Rocks Friends Camp

Phase 2

International Police Museum

Tillamook Pioneer Museum

PCNV Chamber

PCNV Chamber

TEP/WEBS

Latimer Quilt Center

Neskowin Golf Course

Bay City Arts Center

Neskowin Valley School

Tillamook Air Museum

Tillamook County Arts Network

20162016VTC GRANTS - PHASE ONE & TWO

Marketing and Promotions GrantsEach year, Visit Tillamook Coast will provide funding for marketing and promotions grants for profit and not-for-profit businesses involved in toursim activities. In FY 2015-2016, 17 organizations were funded for an award total of $99,999 ($30,347 in Phase One and $69,652 in Phase Two)

Phase 2

Phase 1

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2016MEMBERSHIP ROSTER SMALL BUSINESS DEVELOPMENT

Economic Development Council of Tillamook County

Membership 2016

Sustaining IGA PartnersCity of ManzanitaCity of NehalemCity of WheelerCity of Rockaway BeachCity of Bay CityCity of GaribaldiPort of NehalemPort of GaribaldiTillamook Bay Community CollegePort of Tillamook BayCity of TillamookTillamook PUDTillamook County Board of Commissioners

Council PartnersTillamook County Creamery AssociationTillamook Regional Medical Center

Prominent Small Business Members (10 or more employees)Tillamook YMCALes SchwabHeadlight HeraldPacific SeafoodNehalem LumberUmpqua Bank

Small Business Members (5-9 employees)Albright & KittelGaribaldi HouseSimpson and Roesner, CPA

Entrepreneur Members (less than 5 employees)Bay Ventures, Inc.Tillamook Coliseum TheatreHudson InsurancePacific Taxi ServicesThree Waters OasisVanir BroadbandVLG ConsultingBayside Market and Deli

EDC Angel Members (Sole proprietors and not-for-profits)Doug OlsonTim JosiEd GallagherRudy FenkPCNV ChamberRockaway Beach ChamberTillamook ChamberTillamook Revitalization AssociationTillamook Estuaries PartnershipTillamook County Soil and WaterTillamook County Pioneer MuseumCARE, Inc.

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20162016SMALL BUSINESS DEVELOPMENT

The Tillamook Small Business Development Center was the first of its kind in Oregon, established in 1984. Today it is one of 19 such centers distributed throughout the state with the specific mission of “Helping to Build Oregon’s Best Businesses”. The organization is closely related to the Economic Development Council because it is dedicated to assisting small businesses in the community. In the case of Tillamook County, the EDC also shares its director and office specialist with the SBDC.

The Tillamook SBDC served over 120 unique clients in fiscal year 2016 which translated into over 800 hours of one-on-one counseling with those clients. The SBDC is funded through the Small Business Administration (SBA) on the federal level as well as the State of Oregon. The center is also supported by its host institution, Tillamook Bay Community College.

The SBDC has been a critical partner to the EDC, especially working with entrepreneurs seeking financial assistance through the EDC’s Revolving Loan Fund (RLF). The SBDC is also a conduit to many highly specialized state-wide services including the Capital Access Team (CAT), International Trade Center at Portland Community College SBDC, Technology Impact Program (TIP), Market Research Institute (MRI), and the Credit Builder Program (CBP) which is housed right here at the Tillamook SBDC.

The Tillamook SBDC provides workshops throughout the school year at Tillamook Bay Community College which cover topics of critical importance to the community’s entrepreneurs. Some of the more popular workshops include “Getting Your Small Business Off the Ground”, “Crowdfunding - What is it and Will it Work for Me?”, “Am I Really Making Money in My Small Business?”, and “How to Write an Effective Business Plan”. Another local program of note is “Recipe to Market” which is a series of work-shops designed to help small-scale food producers get their products to the shelves of retail grocery establishments. The series includes a trip to the Portland “Food Innovation Center” (Oregon State University) where they can test the properties of their own products in a certified laboratory environment.

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FINANCIAL STATEMENT

Financial Statement

Administrative Fees 2,080$ Interest Income 378$ Other Income 727$

Membership Dues -$ County Contract 73,400$ IGA Partners 15,432$ Private Partners 6,617$ Other Public Entities 1,322$

Total Revenue 99,956$

Administrative Salaries 35,388$ Support Staff Salaries 18,360$ Insurance Benefits 14,304$ Worker's Comp Insurance 172$ FICA 4,447$ PERS Contribution 5,296$ Unemployment Insurance 790$ Supplies 306$ Travel 859$ Meetings 1,138$ Annual Meeting 2,043$ Professional Development 345$ Telephone 650$ Membership Dues 125$ Advertisting 490$ Accounting Fees 3,598$ Other Professional Fees 1,075$ Legal Fees 114$ Other Contracted Services 1,892$ Insurance 1,441$ Internet-Technology 302$ Rent-Office 3,000$ Miscellaneous 241$ Transfer Out to General Fund (PERS) 3,504$ Total Expenses 99,880$

Net Income/Loss 76$

Expenses

Revenues

Fiscal Year July 1, 2015 - June 30, 2016

2016

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BUDGET

20162016

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Grow Your Business inTillamook County, Oregon

Economic Development Council4301 Third St

Tillamook, OR 97141

Contact us at (503) 842-8222 X 1420or mikecohen@tillamookbaycc.edu

Our new home - Partners for Rural Innovation - January, 2017