Open for Business

FOR BUSINESS VOLUME 14, ISSUE 1

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The eugene AreA ChAmber Of COmmerCe: CelebrATingPrOmOTinginfOrming business

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LookingExperts forecast trends and issues facing local businesses in 2015

ahead

features

8How will the local economy do in 2015? The Eugene Area Chamber of Commerce Economic Forecast features expert speakers providing insights and economic prognostications for the coming year.

18It is time to gear up for changes in workplace laws. We take a look at new state and federal mandates, a voter-approved initiative, and a controversial local ordinance.

Columns/Departments

5Chamber @ Work What the Chamber is doing to support and promote businesses in the Eugene area.6Four Questions Two businesses answer four questions that give insight into their companies.20Business News Promotions, new hires, and new members26Last Call Dave Hauser on aspirations for 2015

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Publisher & eDitOr

David Hauser, CCE

COntent eDitOr

Tracy Illene Miller

eugene Chamber exeCutive COmmittee

Craig Wanichek Chair President & CEO, Summit Bank

Nigel Francisco Chair-elect CFO, Ninkasi Brewing Company LLC

Cathy Worthington, Treasurer Licensed Tax Consultant, Worthington Business Services

Sheryl Balthrop Past Chair Partner, Gaydos, Churnside & Balthrop PC

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Eugene Area Chamber of Commerce 541.484.1314

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1401 Willamette St. Eugene, OR 97401

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Open for Business: A publication of the Eugene Area Chamber of Commerce (USPS-978-480).

Open for Business is published bimonthly by the Eugene Area Chamber of Commerce in February, April, June, August, October and December. Circulation: 3,800.

Open For Business 2015

The subscription price is $25, included in membership. Periodicals Postage Paid at Eugene, OR.

POSTMASTER: Send address changes to Eugene Area Chamber of Commerce, P.O. Box 1107, Eugene, OR 97440-1107

Cover story

10Economists and market watchers agree 2015 looks brighter, but whats happening in Oregon and, in particular, Lane County? We asked area leaders the trends and issues they anticipate well see in our local economy this year.

Cover illustration by Asbury Design

THIS ISSUEf e b r u A r Y / m A r C h 2 0 1 5

$PAC-075_MENTOR-EugeneChamber_7.375x4.8126_FebMar2013.indd 1 1/11/13 1:57 PM

14 Carter and Carter Financial17 City of Eugene - Bold Steps27 Eugene Airport 21 Evergreen Roofing 9 Harrang Long Gary Rudnick PC

4 Hershner Hunter LLP28 Kernutt Stokes25 Lane Transit District13 McKenzie-Willamette Medical Center

2 Moss Adams2 Pacific Continental Bank21 Parr Lumber 19 The Register-Guard15 Summit Bank

16 Summit Bank SBA Division22 University of Oregon

FOR BUSINESS VOLUME 14, ISSUE 1

USA $3.95 CANADA $6.95

The eugene AreA ChAmber Of COmmerCe: CelebrATingPrOmOTinginfOrming business

FEBRUARY/

MARCH 2015

LookingExperts forecast trends and issues facing local businesses in 2015

ahead

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Chamber offers workers compensation discount

The Eugene Area Chamber of Commerce and SAIF Corporation have partnered for years to provide a group Workers Compensation discount available for 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.

Chamber recognized for economic development

John Brown named 2014 Eugene First Citizen

CHAMBER@WORK

John Brown, a principal in the real estate firm Evans, Elder and Brown, Inc., was recently honored as the 2014 Eugene First Citizen. Presented by the Eugene Area Chamber each year since 1938, the First Citizen Award honors an outstanding individual who has made significant contributions to the Eugene/Springfield community through business and community service efforts. The honor will be conveyed at the Eugene Chambers annual Celebration of Business presented by Summit Bank set for Tuesday, February 3rd at the Hilton Eugene and Conference Center.

Johns many civic interests have led him to serve as a Eugene Water and Electric Board Commissioner, on the Willamette

Family Services Board of Directors; the McKenzie River Watershed Council; Southtowne Rotary; the HIV Alliance Board of Advisors; Downtown Safety Task Force; Lane Metro Partnership; and the Public Lands Advisory Committee. His past community service includes membership on the board of directors

for the Relief Nursery, the Eugene Area Chamber of Commerce, Downtown Eugene, Inc. and the Downtown Commission. He is a former member of the Eugene Police Commission, a past president of the Cal Young Neighborhood Association and a past chairperson of the Willakenzie Planning Team.

Johns passion is the outdoors, including fishing, and related outdoor activities. He is dedicated to protecting the local environment and has worked to ensure clean waterways. He is particularly devoted to the preservation of clean drinking water.

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.

Mayor Kitty Piercy acknowledged the work of the Chamber and other organizations in orchestrating the Regional Prosperity Economic Development Summit. The two-day summit provided business and community leaders with the opportunity to discuss the communitys progress toward achieving regional economic development goals.

The first day of the summit was held at the UO Ford Alumni Center, and focused on engaging the business and economic

development community in taking stock of progress toward the goals outlined during the first Regional Prosperity Summit, which was held four years ago and resulted in a plan for the area. Panels focused on three strategic industry clusters: Edu-Tech (or education and technology), food production, and advanced manufacturing. The second day of the summit was held in Springfield and served as a forum for federal and state officials to hear about developments in the local economy.

6 OPEN FOR BUSINESS | EUGENE AREA CHAMBER OF COMMERCE

Eugene AreaChamber ofCommerce

Westraurant Concepts

Westraunt Concepts, a locally owned family venture operated by brothers Phil and Chad West, includes the wildly popular Mucho Gusto, Dickie Jos, Dickie Yos, Bill & Tims and Westraunt Catering, employ-ing more than 130 Oregonians from Med-ford to Tualatin.

Phil is the long-time industry visionary, and takes ownership of the recipes and menu, along with all aspects of promotion, branding and design. Chad, newer to the restaurant business, but far from a stranger to a hyper-paced business world, maintains the financials and oversees the upkeep and maintenance improvements of the busi-nesses.

Tell us something about your business not everyone knows?

For the industry we are in, the tenure of the employees is remarkable. We have 140 years of overall experience. Approaching our fifteenth anniversary, we have employ-ees who have stayed with us through high

school and college; in fact, one who is cur-rently working part time who came to us while at Sheldon and now is putting herself through the UO.

Given the current state of the economy, what do you predict for your business over the next year?

Growth! The forecast is strong for single-digit growth, in particular in our catering. We will expand, making changes and additions to our menus, and add new catering vehicles and more advertising. We hired Flint [Livingston] as catering director, and we will hire more on for catering jobs.

We will see aggressive expansion in barbeque at Bill & Tims; the intent is to reach more students with new menu items and menu distribution on campus. Bill & Tims wants to reach the students with more attractive pricing, bringing back a burger, small plates, happy hour and promotion of their BBQ catering.

What is your best customer story? Oh, we love to save someones tail. Jim

used to say, (known widely as Jim-isms, in memory of the late and great Jim West, brother and business partner),We special-

ize in shotgun weddings and last-minute events. The eleventh-hour cancellations that bring business to us are our favorites.

Just this last Christmas, we had a cus-tomer who had a party scheduled and was cancelled on by the restaurant the day of the party. She had to move the party to her house and called Juanita [long-time Eugene Mucho Gusto manager]. She didnt even know what she wanted. She had to throw it together and was looking to us to tell her.

Juanita, who embraces the Jim-ism, asked her for how many, told her what she was going to bring, looked at her key people and said, We can do this. We pulled it together, amazingly.

What would you say to a new business owner about how the Eugene Chamber of Commerce impacts you as a business?

Joining the Chamber is an ideal way to establish contacts. The networking is impor-tant, and it hooks you up with key people, your future customers.

Flint loves it because she has fun. She likes going to Greeters [Friday mornings at Valley River Inn]; we had a booth at the Expo, we enjoy it.

FOUR qUESTIONSWe asked two local businesses to respond to four questions that give insight into their companies and their predictions for 2015.

gallic & 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 people who do not fit the traditional lending model. Private money is not the same thing as subprime lending. We place private, individual funds into well-secured real estate loans that arent available in the conventional marketplace. Weve made loans to everyone from retired grandmas on social security to wealthy doctors. Our loans have ranged from $15,000 to $2 million. The Dodd-Frank legislation, which was enacted as a result of the mortgage crisis, drastically decreased our ability to offer loans to homeowners.

Given the current state of the economy, what do you forecast for your business in the coming year?

A Republican-controlled Congress could benefit my business in some easing of the mortgage regulations that have limited the scope of my business. With some eas-ing of the legislation, we could help more homeowners who cannot rely on traditional bank financing. In some cases, this would mean saving homes and owners from being foreclosed upon. This is important work. We are not just real estate investors, but the brisk real estate market has allowed me to increase my staffing and increase loan volume.

What is your best customer story? A borrower client needed money for his

business, and banks wouldnt loan to him for

various reasons. He had a business in com-mercial and residential property. We got creative, which we call underwriting from our guts. If we like a person, sometimes we can find a way to make the loan work. We crafted a loan solution that included the

mans son pledging his own home so his father could get the loan.

Two years later, he sold the business and became one of our best investors with the proceeds. He is not our only customer to come to us who has, later on, come back as an investor.

What would you tell a new business owner about why joining the Chamber of Commerce is important to local business?

Joining the Chamber is important for any Eugene business because of the fervent advocacy on behalf of local businesses, small and large. I dont have time for doing this work myself. Also, the numerous network-ing opportunities they provide connect me with the community.

Westraunt Concepts Inc. managers and owners from left to right: Juanita Jones, Gabby Norton-Guerra, Chad West, Flint Livingston, Jason Erb, Lynn Horning & Phil West (not pictured) at Bill & Tims Barbeque.

Kerrie Johnson is taking ownership of Gallic & Johnson Financial

fOur QuestiOns

Joining the Chamber is important for any eugene business because of the fervent advocacy on behalf of local businesses, small and large.

F E B R U A R Y/ M A R C H 2 0 1 5 | O P E N F O R B U S I N E S S 98 OPEN FOR BUSINESS | EUGENE AREA CHAMBER OF COMMERCE

The 2015 economic forecast offers insights and intelligence for local businesses

The Eugene Chamber of Commerce Economic Forecast 2015 features expert speakers providing insights and economic prog-nostications for the coming year and will take place on Monday, March 30, from 2:30-5:00pm at the Hilton Eugene.

This years program features:

Sean Robbins, director, Business OregonSean Robbins became the director of Business Oregon in

June. Prior to his appointment, Robbins served as president and CEO of Greater Portland Inc. He has more than a decade of experience in economic development, commercial real estate and urban and regional planning. Robbins will review Oregons evolving economic development strategy and connections to lo-cal economic development efforts.

Allison Larsen, Principal, TadZoAllison Larsen leads an economic development and

site selection consulting firm. She has over 17 years of economic development experience working with more

than 63 communities across 21 states/provinces. Ms. Larsen consulted with local leaders on the Economic Development Big Look process and will share findings from that process.

The Register-Guard Panel of EconomistsOregons leading economists analyze trends and help an-

ticipate the economic year ahead in a fast-paced, interactive and entertaining panel presentation featuring: Bill Conerly, Conerly Consulting; Tom Potiowsky, former state economist and professor of Economics at Portland State University; Ed Whitelaw, founder and president of ECONorthwest and profes-sor of Economics, University of Oregon; John Mitchell, M & H Economic Consultants; and Brian Rooney, regional economist at the Oregon Employment Department.

Economic Forecast features six of Oregons leading econo-mists, 600 top industry and community leaders and a lot of

information you can use to help navigate your business. Register today at www.eugenechamber.com.

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F E B R U A R Y/ M A R C H 2 0 1 5 | O P E N F O R B U S I N E S S 1 11 0 OPEN FOR BUSINESS | EUGENE AREA CHAMBER OF COMMERCE

By TRACy ILENE MILLER

PHOTOS By DAVID LOVEALL

economists and market watchers agree that the national outlook for 2015 is brighter, as 2014 rep-resented a growth year, an upturn from a recession that hit the country and Oregon squarely between 2008 and 2009.

Some of the indicators the U.S. economy is in recovery:

Although underemployment (working at reduced wages or hours) is still an issue, unemployment dropped to 5.6 percent in December, according to the Labor Department, the lowest since 2008, with big gains in construction and (smaller but still significant activity) in factory jobs, health care and business services.

Consumer spending is strengthening, at 0.6 percent in November, double from October, with households buying new cars, appliances, televisions and clothing, according to the Commerce Department, and light-vehicle sales the high-

est in 2014 since 2006. U.S. Gross Domestic Product (GDP) expanded 2.5 percent

in 2014, and is expected to climb to over 3.5 percent in 2015. Other recession indicators such as real manufacturing and

Whats ahead?

COver stOry

Local business leaders offer business trends and predictions for 2015

The GDP for the last quarter was very strong. With

an improved local economy and stronger credit quality, the financial sector will reflect the overall community and should

have a solid 2015. Craig Wanichek

President, Summit Bank

Real estate continues to be a stable investment over the long term ... This

reality will regain consumer confidence during these

continuing uncertain times. Marcia Edwards,

Broker , Windermere Real Estate Lane County

Eugene ... is trying to expand its urban growth boundary, but that is step one; then we need to get

[an increase in] manufacturing.

Scott Lindstrom, Vice President of Operations,

Jerrys Home Improvement Center


COver stOry COver stOrytrade sales, industrial production, nonfarm payrolls and real personal income saw gains in 2014, with all except personal income trending upward every year since 2010.

But whats happening in Oregon and, in particular, Lane County? How does activity compare with national trends?

To get a sense of whats behind us and whats ahead, we asked area leaders the trends and issues they anticipate well see in our local economy this year.

Residential Real EstateHousing is a big driver of jobs and the

economy, and is a much-watched indicator of economic health.

Not unlike other indicators discussed here, Lane County residential real estate is in recovery, and is doing so despite challenges, says Marcia Edwards, a residential real estate broker with Windermere Real Estate Lane County.

When comparing fourth quarter sales for 2014 and 2013, the number of single-family, detached homes sold were up by 17 percent in Lane County (excluding Florence area) and 2.1 percent nationally. At the same time, Lane County has seen a consistent decline in inventory since June 2014 from an already low inventory of homes available for sale at that time. Fewer houses are going on the market.

Upcoming challenges, then, for residential real estate are quantity of houses and price.

Inventory is low. The supply side is deplet-ing, Edwards says. We have an increased number of houses that have sold, fewer used homes coming onto the market and not enough new construction home starts.

In addition, although there is sufficient inventory at higher price points for detached, single-family homes in Lane County in some geographic areas, the supply is low where demand is highest, for homes at $225,000, the median sales price in 2014.

Two significant factors contributing to this mismatch are the local employment base and buildable land. The local economy provides insufficient long-term, higher-wage jobs to enable buyers to purchase at the higher price points, where the inventory is highest, Ed-wards says.

Plus, there is a significant lack of available land on which it is cost-effective for builders to build at a more affordable price point. The land that is available often requires significant excavation and greater infrastructure, in-

creasing labor and material costs, Edwards says. The final product has to be priced to take into consideration these significant costs, which means higher-priced houses.

In addition, Lane County builders expe-rienced in 2014 increases of 912 percent in construction costs, including impact fees, system development charges and materials, Edwards says.

For 2015, Edwards anticipates a price appreciation of 35 percent, and based on constructions starts, consumer confidence and reorganized credit, she forecasts an 810 per-cent increase in number of units sold in Lane County. During 2014, the median sales prices appreciated by 4.4 percent in Lane County

(excluding F lorence),

while nation-ally it appreciated

by 5 percent.Real estate continues to be a stable in-

vestment over the long term, and I think that this reality will regain consumer confidence during these continuing uncertain times. Edwards says.

We are at the right place and the right time, Edwards says, to have a powerful influ-ence on our long-term livability.

We need to make a focused, aggressive effort to address our Lane County home-affordability issues. By increasing the number of higher-waged, sustainable jobs in our area,

and by supporting the effort to bring afford-able new home inventory to Lane County, we can significantly strengthen this community for years to come.

Commercial Real EstateLooking at trends with a wide angle, things

are looking up for commercial real estate, and local activity parallels national trends.

Multifamily units are popular. For the first time in 10 years, nationally, multifamily housing has outstripped office construction because of shifting desires for housing by both Millennials and aging baby boomers; funders have been strongly backing projects in the multifamily sector.

Locally, the biggest thing is the boom in student housing, says Corey Dingman, part-ner at Duncan & Brown Real Estate Analysts. It has been a popular investment, with good returns due to historically low interest rates and strong rents. National companies special-izing in purpose-built student housing have now discovered our market and have made a strong push to add units over the past three years.

The trend is away from local developers building, say, 10-unit projects toward national

developers coming to the area and building 100+ unit complexes.

All of these new units have come at a time when UO enrollment is flat, so there is the question of whether it is sustainable, Ding-man says. We have seen school-year vacancy for the first time in 10 years, and vacancy will

continue to increase as more units are added. Continued low supply. Locally, commer-

cial market rent levels are too low to justify new construction.

Outside of the campus apartment market, We havent seen new construction being fi-nancially feasible in most sectors. One excep-tion is downtown, but this has only occurred with sizeable help from the city, Dingman says.

Investors follow the jobs and the people. Nationally, investors are going to where there is a combination of population, job growth and higher income levels markets such as San Francisco and Austin, and includ-ing Seattle and Portland, where technology jobs and an influx of talent has accelerated job gains ahead of other areas of Oregon.

Likewise, locally, new commercial de-velopment has been focused on areas with the strongest rents, which justifies the costs of construction. Thats been primarily in the University of Oregon and Coburg Road areas, Dingman says. Similarly, redevelopment is concentrating in areas that draw people from a wider demographic, such as Valley River Center and Gateway Mall.

The good news is: There is activity occur-In the past two years,

weve started to see commercial land sales

happening. That is a good indicator we are returning to normal market conditions.

Corey Dingman, partner at Duncan & Brown

Real Estate Analysts

Locally, the biggest thing is the boom in student housing ... All of these new units have come at a time when UO enrollment is flat, so there is the question of whether it is sustainable.

Corey Dingman P artner at Duncan & Brown


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COver stOryring now where five years ago there was none.

Lane County tends to trail the region and country coming out of these recessionary periods, and many of the neighborhoods in the Eugene-Springfield area wont be seeing redevelopment or new development in the near future, Dingman says. But now we are seeing, as would be expected, building in the premium areas, and that will spread as the economy continues to rebound and average wages increase.

Probably the strongest indicator of a rebound is sales of commercial and industrial land. Duncan & Brown figures show com-mercial and industrial land sales (not includ-ing distressed or government sales) dropping 76 percent between 2007 and 2010, and now slowly bouncing back to 66 percent of pre-recession levels, and rising. Commercial-only sales bottomed out in 2010 and have doubled since.

In the past two years, weve started to see commercial land sales happening, Dingman says. That is a good indicator we are returning to normal market conditions.

Another year of the post-recession period

has passed, with sustained growth and ris-ing comfort levels by investors and financial institutions.

People are now willing to invest in them-selves and their business, with expansion and construction of new facilities, Dingman says. People dont want to invest when they are un-

comfortable with where the market is going. But lenders are lending again, Dingman

says, and are looking for properties to fund. Terms are attractive and interest rates low.

Coming out of this recession, weve seen a lot more cash deals, Dingman says, where inves-tors where putting their own cash into property.

Investors are looking at all investment alter-natives, including real estate, and I think real estate looks attractive and will continue to do so, he says.

RetailConsumer spending accounts for about

two-thirds of the total GDP, so activity in the retail industry is an important indicator of current economic conditions.

The nationwide drop in gasoline, averaging $2.13 per gallon in January (the cheapest in six years, according to AAA), has bolstered a strengthening job market and provided an increase in discretionary income to consumers, which is expected to boost retail sales nation-ally and locally.

However, a drop in gas prices may still not be enough for retailers to overcome some of

the significant trends reported in the widely followed Global Powers of Retailing report produced by Deloitte Touche Tohmatsu Limited: driving per person is decreasing for the tenth year in a row due to telecommunica-tions, online sales and other online activities. Retailers will increasingly need to focus on mobile retailing, which is expected to explode in 2015, when an estimated 83 percent of Internet activity is expected to be conducted on handheld devices.

Despite a disappointing Black Friday and a bit of a slump early in 2014, year-end sales has forecasters such as the National Retail Federa-tion predicting sales growth in December of 4.1 percent year-over-year and overall average growth in 2015 of 4.1 percent nationally.

Locally, generally speaking, the last quarter of 2014, almost everything in retail did well, with the exception of home electron-ics, computers, tablets and TVs, says Scott Lindstrom, vice president of operations, Jerrys Home Improvement Center, and a member of the Chamber of Commerce board.

Last year, in home improvement and other

retail, nationally and locally, severe winter weather stifled results, which is not the case this year. The first-quarter lows of 2014 were inconsistent with the stronger signs of recov-ery for the rest of the year.

Interest rates have remained low, un-employment has decreased and home values started improving, leading people to want to

invest in their homes and to feel that there is a better value, Lindstrom says. Oregon is doing better than it has in a long time.

A drag on retail that will continue into 2015 is lagging resident home construction, as well as weak wage growth, underemployment workers who must settle for lower wages or part-time over full-time work and slow employment growth.

Although the metrics are improving for Oregon, Eugene is just slower than Portland, which has tech clusters. Eugene doesnt have much [industry], and it is trying to expand its urban growth boundary, but that is step one; then we need to get manufacturing, Lind-strom says.

According to the Oregon Office of Eco-nomic Analysis, Currently, wages in Oregon are increasing at nearly 7 percent per year, which is on par with the mid-2000s expansion but below the 1990s gains of 8 percent per year. Average wages per worker are currently increas-ing over 3 percent per year, which is slightly above the rate of inflation. However, real wages have increased less than one half of one percent

Generally speaking, the last quarter of 2014, almost everything in retail did well, with the exception of home electronics, computers, tablets and TVs.

Scott Lindstrom

Vice President of Operations, Jerrys Home Improvement Center

We havent seen new construction being financially feasible in most sectors. One exception is downtown, but this has only occurred with sizeable help from the city.

Corey Dingman Partner at Duncan & Brown


COver stOry

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1 6 OPEN FOR BUSINESS | EUGENE AREA CHAMBER OF COMMERCE

per year since 2000. As economic conditions continue to improve, expectations are that real average wages will pick up as well.

Real average wages picking up affects con-sumer confidence and can drive up consumer spending.

FinanceIn the financial sector, were finally emerg-

ing from one of the worst periods banks have ever faced, says Craig Wanichek, president & CEO ofSummit Bank.

Its taken Oregon banks nearly five years to recover from the challenges arising from the 200809 massive U.S. economic recession. Banks rely on sound asset quality, which is reflected in the quality of their loans and the credit risk associated with these loans.

Compared with other communities, the Eugene-Springfield financial sector was more fortunate and not as affected by nonperform-ing commercial real estate or development loans during the recession in part, because of land use restrictions and lack of available land to develop, Wanichek says.

We didnt see a large run up and a bubble in real estate, so it was tough, but not as 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 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, there will be no substantial job growth there.

There is a trend toward investing in tech-nology to deliver our products and services, Wanichek says.

So, banks are back to lending money in the commercial sector, where they had been either hesitant or challenged to make loans. They have relaxed underwriting standards as the

economy has improved, and more financing options are now available for businesses than just two years ago.

Community businesses are back to mak-ing investments in their facilities, equipment and people as they grow their companies, and part of those investments will be financed with loans, Wanichek says.

Recently, there has been local growth in the

manufacturing and traded sector, particularly in the Coburg area, Wanichek says, and multi-family housing units have also experienced growth over the past couple of years.

But we have yet to see the market rebound for single family houses to pre-recession levels, so I think that has the potential to be a tail-wind as the economy continues to improve.

As well, across the region, the manufactur-ing job base has shrunk, even though it has improved since the recession. Companies tied to the national economy have seen improve-ment ahead of the West Coast or locally tied businesses, which tend to lag behind the rest of the country.

It is important to have those higher-pay-ing jobs to help the rest of the local economy, Wanichek says.

The GDP for the last quarter was very strong. With an improved local economy and stronger credit quality, the financial sector will reflect the overall community and should have a solid 2015. Ultimately, we are a reflection of the business community.


COver stOry

Tap into Summit Banks SBA DIVISION.

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Community businesses are back to making investments in their facilities, equipment and people as they grow their companies.

Craig Wanichek

president & CEO of Summit Bank



neWs yOu Can use

A guide to new workplace lawsA new year is upon us, and if employ-

ers havent already, it is time to gear up for changes in workplace laws. After new state and federal mandates, a (hot-topic) voter-approved initiative and a contro-versial local ordinance, Eugene businesses would be well served to give their current HR policies a once-over in 2015 to review and ensure compliance on important new and updated regulations.

Minimum wageFollowing Oregon state law, Oregons

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. Oregons minimum wage is the second highest in the nation, falling just below Washington states $9.47 per hour rate.

Paid sick leaveIn July, Eugene became the second city

in Oregon to enact a paid sick leave ordi-nance. The ordinance requires all employ-ers to provide one hour of paid sick leave for every 30 hours of work completed by an employee, up to 40 total hours of paid sick leave a year. The ordinance and ad-ministrative rules allow for an employee to roll over unused time from one year to the next, but there is no mandate for employ-ers to allow more than 40 hours a year.

The administrative rules created by the City Managers office, with input from community members, allow businesses to comply with the ordinance by converting all sick and vacation time to paid-time-off policies, as long as they allow time off to be earned at the rate of one hour per 30 hours worked.

The Eugene paid sick leave ordinance goes into effect July 1.

Recreational marijuanaThis spring, Oregon employers will

want to review and consider revising workplace policies related to drug test-ing and pre-employment screening, as a new law will go into effect July 1 that

allows for recreational marijuana use in Oregon. Measure 91, passed by voters in the November general election, allows Oregonians to possess and use cannabis within the state.

As the drug is still prohibited by federal law, employers may still forbid employees from having marijuana in their system. However, employers should take a look at their policies and define what they consider an illegal drug.

ACA employer mandatesEmployers of businesses with 100

or more employees should have offered employees health care as of January 1, ac-cording to the Affordable Care Act.

These employers must offer health care benefits to 70 percent of their full-time employees this year, with an increase to at least 95 percent by 2016.

For smaller employers with 50 to 99 employees, health care benefits must be offered to full-time employees beginning January 1, 2016.

Those out of compliance will be fined $2,000 per employee, with an exemption for the first 30 employees.

2015 legislative sessionWhile it is still early in the session, it

is likely that several high-profile issues will be entertained in the 2015 legislative session. With a strong majority in both the Senate and House of Representatives, Democrats are expected to push several issues through to the floor that have lost by slim margins the last few years.

Issues such as a statewide paid sick leave, increases to minimum wage standards, transportation funding and a carbon fuel tax are expected to garner the attention of state elected officials through-out the session.

On issues such as paid sick leave, the Eugene Chamber of Commerce is paying close attention to proposed bills making their way through legislative committees, as a statewide law may possibly supersede the regulations established after the Eu-gene ordinance passed last July.

For more information on any of the above policy changes, or if you have ques-tions about the Eugene Chamber of Com-merces policy positions, please contact Director of Business Advocacy Brittany Quick-Warner at 541-242-2354.


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

Well help your business succeed online.Introducing RG Media Lab

For decades The Register-Guard has provided businesses with Lane Countys most trusted and respected advertising medium. Now weve created RG Media Lab to help local businesses who need to build modern, mobile-friendly websites and improve their digital marketing. Well also help you create compelling content that converts your website visitors into customers.

Their entire team was delightful to

work with and helped us accomplish our next steps in the digital world for our landscape services. They were very good at helping us articulate our goals and then brought them to life on the Web and in social media forums. Our new website is outstanding; its user-friendly and easy to view on all screen types. We are thrilled with the positive feedback we have received from both our current clients and new contacts.

Ron and Joy FeltOwnersFrom left to right:

Tyler Mack Director, Deborah Ramirez Sales Manager, Jason Miller Client Services Coordinator, Melissa Rokaitis Digital Marketing Consultant, Tyler Robinson Web Developer

Meet our team!

RG Media Lab Services: Responsive Website Design Social Media Management Email Marketing Video Production Secure Hosting Services


Promotions/ new hiresPhotos appear left to right from top.

Ninkasi Brewing Company has hired Jon Rogers as the new Chief Marketing Officer to lead the brewerys internal

marketing and design. www.ninkasibrewing.com

Kirk Martin State Farm Agency has recently hired yiran Zhou, a senior at the University of Oregon, with plans to graduate

in June with a major in Business Marketing and Decision Science. www.kirkmartininsurance.com

Lane Transit District has hired Roland Hoskins as the Director of Administrative Services. He replaces Mary Adams who

retired in January 2015. www.ltd.org

Quantum Recruiters Inc. has hired Tracie Gibson as president.www.quantumrecruiters.net

Irene Alltucker has become a real estate broker and joined the commercial real estate company of Evans, Elder & Brown

Inc. Most recently Irene was the Capital Campaign director and Executive Director for the Relief Nursery, Inc. www.eebcre.com

The Eugene office of Moss Adams LLP is proud to announce the following new hires and promotions: Billy Brice, Maggie Elliot, Taylor

Jensen, Harvey Wang, and Brad Jones were hired as Staff. Katherine Baker was promoted to Manager, Brian Burns, Jered Souder, Michael Woodmansee, and Tiffany Phillips were promoted to Senior, and Michelle Meador was promoted to Regional Sale & Marketing Manager. www.mossadams.com

WHA Insurance would like to announce the promotion of Nathan Cassube to Account Executive. www.WHAINSURANCE.com

Therapeutic Associates Physical Therapy at Crescent Village has hired Megan Swift PT, DPT.

www.therapeuticassociates.com

Eugene Concert Choir is pleased to announce Mindy Linder joined the organization as the new Director of Marketing

during the fall at the top of their 40th Season 2014-2015. Mindy is one of the proud co-founders and former steering committee members of the Arts and Business Alliance of Eugene (ABAE). www.eugeneconcertchoir.org

New Horizons In-Home Care has promoted Anna Rauschert, RN to the Administrator of the new Salem office and hired Chelsea Beecroft as Community Relations Coordinator for Linn-Benton and Marion Polk Counties. www.eugeneinhomecare.com

Turell Group has hired Kelli Warner as P.R. Manager to its marketing team. Kelli has experience as a news anchor/reporter

and all forms of communications.www.turellgroup.com

Security Monster has hired Dan Oester as a Sales Manager. www.securitymonster.com

Pivot Architecture welcomes new partners Kari Turner, AIA, and Kelley Howell, AIA, LEED AP BD+C. www.pivotarchitecture.com

KDP Insurance, Inc. has hired Misty St. Clair as an Account Marketing Manager, Jeryl Coleman as a P&C Account Manager, and Kelsea Meier as a Client Services Coordinator.

www.kdpinsurance.com

Hershner Hunter, LLP welcomes Nicholas M. Frost as partner after joining the firm in 2011. He focuses his practice on estate planning, business

succession planning, and other work with individuals and business to develop plans for the future. www.hershnerhunter.com

Local advanced imaging center, Willamette Valley Imaging is pleased to announce that Frankie Zaita has joined the Radiologic Technologic team. With many years of experience, Frankie will be a strong asset to an already advanced and solid imaging reputation. www.willamettevalleyimaging.com

Announcements & KudosCourt Appointed Special Advocates (CASA) has received the following foundation grants to train and support new volunteer advocates: Cow Creek Band of Umpqua Tribe of Indians ($7,500); Jubitz Family Foundation ($2,500); RBC Wealth Management ($5,000); Taco Bell Foundation for Teens ($18,800); Wells Fargo ($1,500); Mark and Nichol Pendell Rauch Fund of the Oregon Community Foundation ($322.73); The Chinn Family Charitable Fund of The Oregon Community Foundation ($250); Elizabeth S. Holden Fund of The Oregon Community Foundation ($20,000); R.W. Family Fund of The Oregon Community Foundation ($1,000); The Weyerhaeuser Giving Fund ($2,000); and The Collins Foundation ($20,000). www.casa-lane.org

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Parr has been providing building materials to homeowners and builders throughout the Northwest since 1930. No matter what the project, you can have confidence that youll receive the same quality products, service and expertise that professional contractors have relied on for decades.


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 OConnor, 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). NEDCOs Incubator [Hatch] is a promising way to provide nonprofits with the thoughtful support they need to do their best work in the community, says Jeff Geiger, Program Officer for OCF. www.oregoncf.org

www.nedcocdc.org

RE/MAX Integrity received the prestigious Brokerage of the Year (2014) for the entire RE/MAX Pacific Northwest region, which includes Oregon, Washington, Idaho and Montana. www.integrityhomesonline.com

New Horizons In-Home Care has opened a new location at 200 Hawthorne Ave SE, Ste. E-510 in Salem. www.newhorizonsinhomecare.com

The Eugene Ballet Company will be presenting Carmen February 14 at 7:30pm & February 15 at 2:00pm which is choreographed by Artistic Director Toni Pimble and will be at the Hult Center for Performing Arts. On February 21, Eugene Ballet Company and the Board of Directors will host Table Dances, their fourth annual fun raiser event at 5:30 pm at the Eugene Country Club. The 2015 themes are Sleeping Beauty, Silk and Steel, Tommy The Ballet, Rhapsody in Blue, 7 Deadly Sins, Zoot Suit Riot, La Cration de Monde and Copplia. To purchase tickets contact Karen at [email protected] or 541-485-3992. www.eugeneballet.org

St. Vincent de Paul Society in Eugene received $25,000 to support its six projects that serve military veterans and their families from Wells Fargo in November. As part of their Community Support Celebration, $450,000 was presented to eight nonprofit groups which serve Portland, Salem, Medford, Eugene, and many Central Oregon communities. www.svdp.us

www.wellsfargo.com

Eugene youth Ballet, the pre-professional performing youth dance company of the Eugene Ballet Academy, recently received a $2,000 grant from the Lane County Cultural Coalition to assist in promoting and growing the Northwest Dance Festival, April 18-19, 2015. For more information contact Artistic Director Sara Lombardi at 541-686-9342 or [email protected].

Ninkasi Brewing Company LLC. has new locally-owned independent whole sale partners Bigfoot Distributing and The Odom Corporation.

Ninkasi Brewing Company LLC. was named 2015 Good Food Awards Winner for a commitment to produce food ethically and sustainably. The Vanilla Oatis Oatmeal Stout for example uses Madagascar vanilla beans supplied by local Eugene vanilla distributor, Singing Dog Vanilla.

Sixth Street Grill is celebrating 30 years of business in Eugene by arranging a proceeds donation to a local charity each month of 2015! www.sixthstreetgrill.com

Umpqua Bank was named Oregons Most Admired Financial Services Company for the tenth year in a row and the Sixth Most Admired Company across all industries by The Portland Business Journal.www.umpquabank.com

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Wells Fargo officers Cobi Jackson (left), Tracy Curtis (second from right) and Bernie Kronberger (right) present $25,000 check to Terry McDonald & Rebecca Larson from St. Vincent de Paul.

The Sixth Street Grill co-owner Linda Addison shows off their Duck memorabilia.


Chamber membership has given us the

opportunity to build relationships with

other businesses. Were committed

in our partnership with the Chamber

in making this region a great place to

live and work. After all, a community

worth living in is a community worth

improving. Wouldnt you agree?

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

Join the Eugene Area Chamber of Commerce

541-484-1314www.eugenechamber.com

Business News covers promotions, hires, awards, business giving and business news. Email items to [email protected].

new membersWhen you join the Eugene Area Chamber of Commerce, you become part of a vibrant and prosperous community of creative entrepreneurs, forward-thinking innovators and visionary business leaders. Were pleased to welcome these new members who have chosen to take advantage of the Chambers tools, resources and expansive network to grow their businesses:

Veronica Shean Interior Designwww.veronicashean.com

Synergy Massagewww.synergymassageeugene.com

Heritage Meadows Apartmentswww.heritagemeadowapartments.com

Farmers Insurance Carie L. Majors Insurancehttp://www.farmersagent.com/cmajors

LiveAble Home Solutionswww.liveablehomedesign.com

Willamette Valley Video Tourswww.willamettevalleyvideotours.com

Oregon Electric Stationwww.oesrestaurant.com

A-1 Commercial Constructionwww.a1commercialconstruction.com

Atlas Cleaning Services LLCwww.eugenecleaningservice.com

Applied Tax Solutionswww.appliedtaxsolutions.net

Get Air Eugenewww.getaireugene.com

IDXwww.idxbroker.com

Allstate-Bart Swansonwww.allstateagencies.com/bartswanson

Capitello Wines LLCwww.capitellowines.com

Edgewater Home Furnishingswww.edgewaterfurniture.com

NCM Media Networkswww.ncm.com

On Demand Stress Solutionswww.ondemandstresssolutions.com

Eugene Concert Choirwww.eugeneconcertchoir.org

Lane Local Foodswww.lanefood.org

Emerald Business Partnerswww.ebpeugene.com

businessneWs



This is the time of year when economists offer their insights into the economic future. Based on what Ive been reading, most predict that 2015 will continue to build on the solid economic progress established in 2014. Thats 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?

last Call by Dave hauser

Here are seven news stories I would like to read in the coming year:

1. EWEB and the University of Oregon Foundation complete negotia-tions that will enable the foundation to move forward with the redevelopment in the riverfront district.

2. RAIN Eugene moves forward with the development of an entre-preneurial and innovation hub in downtown.

3. Legislative leaders compromise on sick leave and minimum wage legisla-tion, supporting Oregon workers while restricting burdensome local regulations that impede economic progress.

4. Construction of the West Eugene EmX moves ahead toward a 2017 completion date, and business impacts are considered negligible.

5. After a decade-long growth study, elected officials move ahead with modest Urban Growth Boundary expansions to increase supplies of job-producing lands.

6. Whole Foods moves briskly toward the opening of its downtown store in March 2016, continuing the positive transformation of downtown Eugene.

7. The Chamber and Eugene Airport construct a package of inducements to

bring direct air service from San Jose, creating connections that support a burgeoning technology and start-up community.

William Shakespeare said, It is not in the stars to hold our destiny but in ourselves.

We can make 2015 a great year for our region by working together, focusing on accomplishments and making this great place even better.

Dave Hauser is president of the Eugene Area Chamber of Commerce, a 1,100-member organization dedicated to promoting a healthy local economy.


5 Airlines/10 Nonstop Destinations/Infinite Connections

Aspirational thoughts for 2015

PO Box 1107Eugene, OR 97440-1107

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1600 Executive Parkway, Suite 110, Eugene, Oregon 97401541.687.1170 | kernuttstokes.com

Empowering your business through knowledge and innovationAt Kernutt Stokes, we dont 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.

Strategic

WARREN BARNES, MANAGING PARTNER

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