HOUSE COMMITTEE ON TRADE AND ECONOMIC DEVELOPMENT

 

 

January 31, 2003†† Hearing Room D

1:00 PM††††† Tapes 3 - 4

 

 

MEMBERS PRESENT:††††††††††† Rep. Patti Smith, Chair

Rep. Vicki Berger, Vice-Chair

Rep. Mary Gallegos, Vice-Chair

Rep. Mark Hass

Rep. Dave Hunt

Rep. Steve March

Rep. Dennis Richardson

 

STAFF PRESENT:††††† ††††††††††† Kimberly A.Medford, Committee Administrator

Linda K. Gatto, Committee Assistant

 

ISSUES HEARD:†††††††† ††††††††††† Informational Meeting

††††††††††††††††††††††† ††††††††††† ††††††††† Oregon Economic and Community Development Department

††††††††††††††††††††††† ††††††††††††††††††††††† †††††††† Marty Brantley, Director

††††† Oregon Economic and Community Development Commission

††††††††††††††††††††††† ††††††††††††††††††††††† ††††††††† Brett Wilcox, Chair†††††††††††††† ††††††††††††††††††††††† ††††††††††††††††††††††† ††††††††††††††††††††††† ††††††††††††††††††††††† ††††† Professor Bruce L. Gates, Willamette University

 

 

These minutes are in compliance with Senate and House Rules.Only text enclosed in quotation marks reports a speakerís exact words.For complete contents, please refer to the tapes.

 

TAPE/#

Speaker

Comments

TAPE 3, A

004

Chair Smith

Calls the meeting to order at 1:05 pm and opens the informational meeting.

INFORMATIONAL MEETING

020

Marty Brantley

Director, Oregon Economic and Community Development Department, (OECDD). States that the purpose of his testimony is to provide an overview of where OECDD has been and current goals. Submits graphs on Budget by Programs 2001-2003, (EXHIBIT A).

037

Brantley

Notes the percentages on infrastructure spending versus business expansion, retention and recruitment.

050

Brantley

Refers to Budget by Fund Type, page two, (EXHIBIT A).

072

Brantley

Refers to Budget and Staff, 1987-2003 of (EXHIBIT A).

110

Brantley

States that one component of the plan is to tie the funding for infrastructure closer to job development.

130

Brantley

States a priority is to add approximately 50,000 jobs over the next four years.

161

Brantley

States that accountability is paramount.

187

Rep. Berger

Asks if the major goal of the organization is to create jobs.

197

Brantley

Responds there are dual goals of job creation and/or economic development depending on funds.

208

Rep. Hunt

Asks will there be standards in the economic development plan on the types of jobs that will be developed.

219

Brantley

Responds that one size does not fit all and each geographical area has its strengths and weaknesses.

262

Rep. Hass

Comments on call center jobs and associated wages.

280

Rep. Richardson

Suggests focusing on what generates new jobs.

300

Berger

Confirms that the goal is to create an atmosphere for economic growth.

326

Brett Wilcox

Owner of Northwest Aluminum and Chair of the Oregon Economic and Community Development Commission and Vice-Chair of the Progress Board.

375

Wilcox

Comments on the direct relationship between state policy and productions costs.

Notes that all businesses compete for revenue.

371

Wilcox

States that there are some general trends:

  • Rate of change
  • New competition
  • Expense of moving freight
  • Structural changes due to global competition
  • Technology

TAPE 4, A

042

Wilcox

States that the focus needs to be on job creation and what can be done to improve the business climate in Oregon.

068

Wilcox

Notes that everything that government does has an impact on business.

087

Wilcox

Refers to the Oregon Business Plan.

147

Wilcox

Notes the similarities and differences of economic and community development; the need for infrastructure. Comments on how one depends upon the other.

177

Wilcox

Discusses Oregonís efforts to attract new businesses to the state.

199

Wilcox

Discusses the financial incentives that Illinois and Texas has. Notes that Oregon does not have that financial incentive ability but Oregon does have site locator advantages.

228

Wilcox

Discusses Oregon Progress Board benchmarks and performance measurements. States it is important to the governor and the people of Oregon to account for fund expenditures relative to jobs and people moved off of welfare.

269

Rep. Hass

Asks what effect the shorting of the school year will have on businesses wanting to locate here.

298

Wilcox

Responds it will be harmful to economic development. Explains that it will fundamentally undercut both short and long-term impacts.

303

Dr. Bruce Gates

Professor, Atkinson Graduate School of Management, Willamette University. Provides (EXHIBIT B), a report on Luring, Growing, and Retaining Corporate Headquarters and Management Offices.

333

Gates

Explains that the report focused on corporate headquarters and concluded that:

  • Corporations largely stay put;

354

Gates

  • Have become geographically dispersed; and
  • Impacted by mergers and acquisitions.

Notes points that are conducive to a growing firm.

  • Well developed research and development facilities and venture capital networks.
  • Forums that serve as a center for idea sharing, productive collaboration and employment networking.
  • Well developed communications and high quality air service.
  • Clusters of industry activities.

TAPE 3, B

030

Gates

Reviews recommendations:

  • Concentrate on improving conditions that are favorable to business in Oregon.
  • Recognize that the locality of the city is probably more important than the state.
  • Study Oregonís recent successful startups.
  • Evaluate the factors that would keep Oregon business headquarters in Oregon.

056

Gates

Notes the changes since 1999 that have influenced the business community.

  • Corporate accountability
  • Offshore jobs, examples call centers

Recommends stimulating innovation and industries that are innovative.

083

Gates

Summarizes that Oregon lacks a forum for businesses to create partnerships. Comments on advantages to a high tech/ agricultural partnership and the world wide market potential.

103

Rep. Hass

Asks how quality of life fits into attracting businesses.

110

Gates

Responds that Oregonís environmental quality of life is one of the greatest attractions to Oregon; however, quality of community life may be more important; employment and education.

126

Rep. Hass

Asks if businesses are concerned about amenities.

130

Gates

Responds there is also the qualitative personal preferences of the CEOís.

160

Rep. Richardson

Asks if a corporate headquarters would provide jobs or bring the company with them.

170

Gates

Responds it was assumed that the benefit would out-weigh the cost.

174

Rep. Richardson

Asks should the assets be focused on bringing in new business or developing what is already in place.

177

Gates

Responds that the bias is to keep what is already in place and help those business become more productive.

190

Chair Smith

Closes the informational meeting and adjourns the meeting at 2:10 p.m.

 

 

EXHIBIT SUMMARY

 

A Ė Budget by Programs, 2001 Ė 2003 Report, Marty Brantley, 3 pp.

B Ė Research Report, Bruce L. Gates, 16 pp.