InBusiness Jan 2012

3
Jim Bernau, president of Willamette Valley Vineyards, shows environmentally friendly bio-casks for use in restaurants in the production area of the winery. DAVID PATTON | ALBANY DEMOCRAT-HERALD hen Jim Bernau planted his first grapevines on a hillside south of Salem in 1983, he was one of a few dozen dreamers who thought Oregon just might be the perfect place to produce wine. Nearly 30 years later, those early vines have pro- duced Willamette Valley Vineyards, one of the leading wineries in the state, and thousands of bottles of ac- claimed pinot noir. The number of dreamers betting on wine as a crop of the future has swelled exponentially as well. State sta- tistics show that the Oregon wine industry has nearly doubled in the past decade, and the growth shows no signs of slowing down. Bernau, who is scheduled to receive a Weatherford Award from Oregon State University’s Austin Entre- preneurship Program in honor of his achievements with Willamette Valley Vineyards, said that despite an economic downturn that led growers to tighten their profit margins, the Oregon wine industry is poised to continue its success. Of course, he’s thought that from the beginning. When Bernau decided to start a vineyard, he was acting on research he’d done in the course of his job as a lobbyist for the Oregon Small Business Association. While working to pass legislation benefiting the fledg- ling wine industry, he became convinced that Oregon was a “great undiscovered country.” “It lit a fire in me. I didn’t know it couldn’t be done,” he said. “And when people told me it couldn’t be done, that was like fuel.” ‘Everyone thought we were crazy’ David Buchanan of Tyee Wine Cellars outside Corval- lis knows the feeling. The Buchanan family planted the first wine grapes on their farm in 1974, back when you couldn’t get a loan to start a vineyard because no one be- lieved it could be successful. “We had television people coming out to talk to us be- cause everyone thought we were crazy,” he recalls. Since those early days, the Willamette Valley has proven to be excellent for cool- climate grapes, most notably pinot noir. And, as Oregon wineries have attracted accolades, their numbers have grown. More than 20,000 acres of wine grapes were planted in 2010, the most recent year for which statistics are available. That’s nearly double the number from a decade before. “The growth is going to continue to be linear, if not exponential,” said Neil Shay, director of the Oregon Wine Research Institute, located at Oregon State University. “The number of acres planted all across the state is still increasing, and we know of more and more vineyard acreage being planted and more people buying suitable acreage.” But according to industry leaders, there is still room to grow. “If you go to Burgundy, in France, they are all plant- ed,” Bernau said. “The only way they’re going to get more land to plant is if they take out the houses at the bottom of the hills.” Oregon, by contrast, has many acres suitable for wine grapes that aren’t planted yet. Room to expand market share Market share has room to expand as well, growers be- lieve. Oregon is the United States’ third-largest wine- producing state, but currently most of that wine is pur- chased within the state’s borders. In some ways, that’s a good thing. “We don’t have a lot of great big huge wineries,” said Buchanan, of Tyee Wine Cellars. “We’ve got a lot of small, local wineries. They’re good for a healthy lifestyle, and they complement the local foods.” That kind of connection with local producers draws in customers, Bernau said. He expects to see more connec- tion between wine growers and wine drinkers in the fu- ture, as consumers seek out what they view as authentic local brands. To facilitate that connection, he plans to turn what’s currently a special events center at his vine- yard into a restaurant, where customers can experience food and wine pairings. However, having a mostly local clientele also means there is room to grow in the export market. “Oregon is the only major wine producing region in the world where we consume a large portion of our own production,” Bernau said. “Others are exporting a lot more.” Across America, wine consumption is up and sales are strong. According to a 2010 study by the Wine Market Council, per capita wine consumption in the United States has increased steadily every year since 1994. Data from Wine Business Monthly show that the two wine va- rieties seeing the most growth in retail sales are riesling and pinot noir — two cool-climate grapes that grow well in the Willamette Valley. Those types, especially pinot noir, also tend to be more expensive, with average prices per bottle start- ing at $20 to $30. But that hasn’t driven customers away. To survive during the economic downturn, wineries did some discounting and tightened their profit margins. Now sales are climbing once again. Bernau’s Willamette Valley Vineyards, a publicly traded company, posted a net profit of $373,407 in the third quarter of 2011. The weather and its impact on the harvest is always a big unknown for wine growers. In recent years, the total number of grapes harvested has been down, due to weather-related factors. However, according to early reports, the wine from grapes grown in 2010 is poised to be some of the state’s best ever, and 2011 is similarly reported to be of high quality. “Folks are very enthusiastic,” Shay said. “[The wine from] 2008 was supposed to be one of the vintages of the century, but 2011 might be one of the best vintages ever.” THE MONTHLY BUSINESS SECTION FOR LINN AND BENTON COUNTIES AND THE MID-WILLAMETTE VALLEY www.democratherald.com/business www.gazettetimes.com/business January 2012 Oregon wineries blossom By JENNIFER ROUSE W Once thought impossible, vineyards thrive in the valley A6: Oregon State Uni- versity cele- brates entre- preneurship and innova- tion through the Weather- ford Awards INSIDE

description

The monthly business section for Linn and Benton counties and the Mid Willamette Valley.

Transcript of InBusiness Jan 2012

Page 1: InBusiness Jan 2012

Jim Bernau, president of Willamette Valley Vineyards, shows environmentally friendly bio-casks for use in restaurants in the production area of the winery. DAVID PATTON | ALBANY DEMOCRAT-HERALD

hen Jim Bernau planted his firstgrapevines on a hillside south of Salem in1983, he was one of a few dozen dreamerswho thought Oregon just might be theperfect place to produce wine.

Nearly 30 years later, those early vines have pro-duced Willamette Valley Vineyards, one of the leadingwineries in the state, and thousands of bottles of ac-claimed pinot noir.

The number of dreamers betting on wine as a crop ofthe future has swelled exponentially as well. State sta-tistics show that the Oregon wine industry has nearlydoubled in the past decade, and the growth shows nosigns of slowing down.

Bernau, who is scheduled to receive a WeatherfordAward from Oregon State University’s Austin Entre-preneurship Program in honor of his achievementswith Willamette Valley Vineyards, said that despite aneconomic downturn that led growers to tighten theirprofit margins, the Oregon wine industry is poised tocontinue its success.

Of course, he’s thought that from the beginning.When Bernau decided to start a vineyard, he was

acting on research he’d done in the course of his job as alobbyist for the Oregon Small Business Association.While working to pass legislation benefiting the fledg-ling wine industry, he became convinced that Oregonwas a “great undiscovered country.”

“It lit a fire in me. I didn’t know it couldn’t be done,”he said. “And when people told me it couldn’t be done,that was like fuel.”

‘Everyone thought we were crazy’David Buchanan of Tyee Wine Cellars outside Corval-

lis knows the feeling. The Buchanan family planted thefirst wine grapes on their farm in 1974, back when youcouldn’t get a loan to start a vineyard because no one be-lieved it could be successful.

“We had television people coming out to talk to us be-

cause everyone thought we were crazy,”he recalls.

Since those early days, the WillametteValley has proven to be excellent for cool-climate grapes, most notably pinot noir.And, as Oregon wineries have attractedaccolades, their numbers have grown.More than 20,000 acres of wine grapeswere planted in 2010, the most recentyear for which statistics are available.That’s nearly double the number from a

decade before.

“The growth is going to continue to be linear, if notexponential,” said Neil Shay, director of the Oregon WineResearch Institute, located at Oregon State University.

“The number of acres planted all across the state isstill increasing, and we know of more and more vineyardacreage being planted and more people buying suitableacreage.”

But according to industry leaders, there is still roomto grow.

“If you go to Burgundy, in France, they are all plant-ed,” Bernau said. “The only way they’re going to get moreland to plant is if they take out the houses at the bottomof the hills.”

Oregon, by contrast, has many acres suitable for winegrapes that aren’t planted yet.

Room to expand market shareMarket share has room to expand as well, growers be-

lieve. Oregon is the United States’ third-largest wine-producing state, but currently most of that wine is pur-chased within the state’s borders. In some ways, that’s agood thing.

“We don’t have a lot of great big huge wineries,” saidBuchanan, of Tyee Wine Cellars. “We’ve got a lot ofsmall, local wineries. They’re good for a healthy lifestyle,and they complement the local foods.”

That kind of connection with local producers draws incustomers, Bernau said. He expects to see more connec-

tion between wine growers and wine drinkers in the fu-ture, as consumers seek out what they view as authenticlocal brands. To facilitate that connection, he plans toturn what’s currently a special events center at his vine-yard into a restaurant, where customers can experiencefood and wine pairings.

However, having a mostly local clientele also meansthere is room to grow in the export market.

“Oregon is the only major wine producing region inthe world where we consume a large portion of our ownproduction,” Bernau said. “Others are exporting a lotmore.”

Across America, wine consumption is up and sales arestrong. According to a 2010 study by the Wine MarketCouncil, per capita wine consumption in the UnitedStates has increased steadily every year since 1994. Datafrom Wine Business Monthly show that the two wine va-rieties seeing the most growth in retail sales are rieslingand pinot noir — two cool-climate grapes that grow wellin the Willamette Valley.

Those types, especially pinot noir, also tend to bemore expensive, with average prices per bottle start-ing at $20 to $30. But that hasn’t driven customersaway. To survive during the economic downturn,wineries did some discounting and tightened theirprofit margins. Now sales are climbing once again.Bernau’s Willamette Valley Vineyards, a publiclytraded company, posted a net profit of $373,407 in thethird quarter of 2011.

The weather and its impact on the harvest is always abig unknown for wine growers. In recent years, the totalnumber of grapes harvested has been down, due toweather-related factors.

However, according to early reports, the wine fromgrapes grown in 2010 is poised to be some of the state’sbest ever, and 2011 is similarly reported to be of highquality.

“Folks are very enthusiastic,” Shay said. “[The winefrom] 2008 was supposed to be one of the vintages of thecentury, but 2011 might be one of the best vintages ever.”

T H E M O N T H LY B U S I N E S S S E C T I O N F O R L I N N A N D B E N T O N C O U N T I E S A N D T H E M I D -W I L L A M E T T E VA L L E Y

w w w.democratherald.com/business • w w w.gazettetimes.com/business Januar y 2012

Oregon wineries blossomBy JENNIFER ROUSE

WOnce thought impossible, vineyards thrive in the valley

A6: OregonState Uni-versity cele-brates entre-preneurshipand innova-tion throughthe Weather-ford Awards

INSIDE

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HOUSE ACCT PAID |

Page 2: InBusiness Jan 2012

LEGISLATIVE PREVIEW

Oregon’s Legislature convenes onWednesday for what legislative lead-ers hope will be a brisk 29-day ses-sion.

It’s the first constitutionally man-dated even-year session since votersin 2010 approved annual legislativesessions, so leaders are feeling pres-sure to make sure the session runssmoothly – because nearly 300 billsalready have been filed to go alongwith the session’s budget-balancingchores, that could be a tall order.

Mid-Valley InBusiness checked inwith area legislators to ask whattheir top priorities would be in thesession and what issues would be ofparticular interest to businesspeo-ple. Here are excerpts from the re-sponses we received:

Sen. Frank Morse, R-Albany• Morse is backing a plan proposed

by House Republicans to add 50,000jobs to Oregon’s economy in fiveyears.

• Morse also is backing a SenateRepublican “Blueprintfor Prosperity,” whichincludes these points:Enact a rules morato-rum on nonessentialagency rule-makingauthority and give theLegislature more influ-ence over agency rulemaking; provide an ex-emption from Oregon land-use lawsfor rural counties with populationsless than 50,000; require the Legis-lature to evaluate job and businessimpacts from major new regulationsand bills.

• A bill from Morse, also part of the“Blueprint for Prosperity,” calls for aconstitutional amendment that re-quires general fund spending not toexceed the average rolling six-yearpersonal income growth rate. Whenrevenue exceeds that rate, the extramoney would be placed in an emer-gency reserve fund. When the fundequals 12 percent of the previousgeneral fund spending, the excesswould be returned to taxpayers. Thebill would preserve the kicker, but themoney would be returned to taxpay-ers only after the emergency fund isfilled. Morse hopes the bill wouldhelp bolster fiscal stability for thestate.

• Morse has a bill that would re-quire the Division of State Lands tofollow the Corps of Engineers wet-land manual and all guidance docu-ments and to not exceed those rules.The bill also would provide an appli-cant the opportunity to challenge afinal Department of State Lands wet-land determination through bindingarbitration. Morse believes the billwould be a boost to economic devel-opment.

• Morse is backing legislation togive implementation authority to theproposed health insurance ex-change. “This will be a benefit forsmall business in providing health in-surance to their employees,” he said.

• Morse also expects health caretransformation and the Oregon Edu-cation Investment Board to be frontand center during the session.

• But he’s realistic about the short-ness of the session. “Realistically,”he said, “there likely will be little leg-islation emerging.”

Rep.Andy Olson, R-Albany• Olson will be closely watching HB

4004, the wetlands bill. “It’s interest-ing because the co-chairs of the(House) Agriculture Committeewanted the bill,” Olsonsaid. “So the bill al-ready has bipartisan-ship built into it.”

Among the provi-sions of HB 4004 arethese: Creation of asoil research commis-sion to determine theeconomic impact of rules adoptedby the Department of State Lands;once property has delineated as wet-lands, certification can be trans-ferred for up to 10 years instead ofthe five currently allowed; wetlandsthat impact less than one acre withan urban growth boundary shall notrequire mitigation if the responsiblegovernmental body has a storm-drain master plan.

• One of Olson’s two measures thissession is HB 4074, which deals withwellness programs and permits em-ployees to pay additional cash divi-dends to participating employees.

• Olson’s other measure this ses-sion is HB 4098, which would in-crease timber harvest levels onspecified state forests. Olson saidthe proposal would pump an addi-tional $441 million into the privatesector through personal incomegrowth over five years. It’s part of theHouse GOP jobs package.

Rep. Sara Gelser, D-Corvallis, wasunable to respond by press time.We’ll check in with her later.

CH2M HILL DONATES TOAMEDC: Albany MillersburgEconomic Development Corp.has received a $30,000 donationfrom CH2M Hill. The company isdonating money it received aspart of winning a 2011 CH2M HillCEO Excellence Award for work onAlbany’s Talking Gardens project.

Talking Water Gardens is awater treatment and reuse proj-ect that is the first public/privateengineering project of its kind inthe United States. CH2M Hillworked with the cities of Albanyand Millersburg, and metal man-ufacturer ATI Wah Chang, to cre-ate the 39-acre functional wet-lands system. The check was pre-sented to AMEDC on Thursday.

CERTIFIED: Anderson & An-derson Anger ManagementServices awarded an anger man-agement facilitator certificationto Bill Graybill, a life and leader-ship coach. Anderson & Ander-son is the largest provider of cer-tified anger management facilita-tor training in the world.

Graybill specializes in conflictand anger management in Jeffer-son. He works with individualsand groups to help them over-come obstacles that are limitingtheir success. For 10 years, Gray-bill has taught conflict and angermanagement cross culturally andinternationally. He is also pastorof Abundant Life Center in Jeffer-son. To reach Graybill, call 541-791-6544 or go online atwww.billgraybill.com.

HELPING HANDS AWARD: TheSpirit Mountain CommunityFund has presented a Ye?lanLima (Helping Hands) Award toAlbany’s Larry Bardell of AlbanyInReach Services. He was one oftwo people to be honored withthe award which was presentedon Dec. 19 by Kathleen George,the fund’s executive director. Theaward honors individuals who ex-emplify community service andinspire their colleagues.

Award winners were nominatedby their peers and selected bySpirit Mountain CommunityFund’s Board of Trustees. After re-tiring from the Veterans Affairshospital as a psychiatric mentalhealth nurse practitioner, Bardellhas provided nearly 400 mentalhealth appointments in just sixmonths. He treats those withanxiety, depression, schizophre-nia and suicidal feelings whowould otherwise not have accessto mental health services. Bardell,who is bilingual, also teaches thepostpartum depression educa-tion class for Albany InReach forSpanish-speaking mothers.

HOME CARE AGENCYHON-ORED: Visiting Angels, a seniorhome care agency, was just award-ed “Best of Home Care”status byHome Care Pulse, a neutral thirdparty organization that monitorsagencies.Visiting Angels has beenserving seniors in Linn, Benton,Marion and Polk counties since2004 and is located at 250 Broad-albin St. in downtown Albany. Ofthe 13 categories considered, theVisiting Angels team ranked in thetop percentile in each. For moredetails about the award, visitwww.bestofhomecare.com.

UNIVERSITIES FORM VETERI-NARY CONSORTIUM: OregonState University has joined fourother universities with colleges ofveterinary medicine to form aconsortium designed to createmore opportunities for students,faculty members and profession-als in the field.

The Consortium of Western Re-gional Colleges of VeterinaryMedicine is a regional think tankcommitted to strategic planning,action and collaboration, accord-ing to Cyril Clarke, dean of the OSUCollege of Veterinary Medicine.

Joining OSU in the consortium areColorado State University,the Uni-versity of California at Davis,Wash-ington State University and WesternUniversity of Health Sciences.

One of the first initiatives con-sortium members will pursue,Clarke said, is faculty develop-ment. The universities plan tocreate a regional teaching acade-my that would offer advanced in-struction for faculty on the latestinnovations and research in vet-erinary medicine.

Other topics and issues theconsortium will address include:

• Removing the gaps betweensocietal needs and selected ca-reer tracks among veterinarians;

• Recruitment of veterinarystudents and increasing profes-sional readiness of graduatingveterinarians;

• Learning and application of “softskills,”such as communication andveterinarian-client interactions; and

• Creating rich and innovativelearning environments for students.

COMPANYTO RECEIVE RUR-AL DEVELOPMENT FUNDS:Queen Bee Honey Company inCorvallis will receive $30,824 inbusiness development assistancethrough the Value-Added Pro-ducer Grant program, which wasauthorized in the 2008 Farm Bill.

Dallas Tonsager, AgricultureUnder Secretary for Rural Devel-opment, announced last weekthat 23 recipients throughoutOregon had been selected to re-ceive the assistance.

Rural Development funds are

made available to agricultural pro-ducers seeking to establish or ex-pand markets for their value-addedagricultural products.Funds can beused for feasibility studies or busi-ness plans,working capital for mar-keting value-added agriculturalproducts,and for farm-based re-newable energy projects.Eligible ap-plicants include independent pro-ducers,farmer and rancher cooper-atives,agricultural producer groups,and majority-controlled producer-based business ventures.

Value-added products are cre-ated when a producer increasesthe consumer value of an agricul-tural commodity in the produc-tion or processing stage.

The U.S.Department of Agricul-ture,through its Rural Developmentmission area,administers and man-ages housing,business and com-munity infrastructure and facilityprograms through a national net-work of state and local offices.RuralDevelopment has an active portfo-lio of more than $155 billion in af-fordable loans and loan guarantees.

NEW BOARD MEMBERS:Heartland Humane Society hasannounced new board membersand officers for 2012-13.

Officers are Lisa Schubert,presi-dent; Lissa Perrone,president-elect; Sanna Watson,past presi-dent; Lissa Perrone,treasurer;Kathryn Switzer,secretary; There-sa Hogue,Sylvia Moore,SuePisias,Suzanne Roppe,Lisa Schu-bert,Karen Timm,Diana Thomp-sonand Justin Wirth,members atlarge; and Andrea ThornberryandSusan Wechsler,ex officio.

NEW THERAPIST: In February,Samaritan Mental Health in Al-bany will welcome Allison Taylor,a mental health therapist whoprovides outpatient therapy foradolescents and adults.

Taylor specializes in youth andparent conflict,oppositional be-haviors, phase-of-life changes,depression, griefand loss issues,anxiety, stressmanagement,attention deficithyperactivitydisorder and re-lationship concerns.

Taylor received a bachelor’s de-gree in social work from Calvin Col-lege in Grand Rapids,Mich.,and amaster’s degree in social work fromUniversity of Michigan in Ann Arbor.She is a member of the National As-sociation of Social Workers,and a li-censed clinical social worker.

Taylor is accepting new pa-tients, and can be reached at 541-812-5060.

NEW EXECUTIVE VICE PRESI-DENT: Beth Hogeland has beenselected as the next executive vicepresident of Academic Affairs andWorkforce Development at Linn-Benton Community College,succeeding Carol Schaafsma,who will retire in June.

Hogeland, a Millersburg resi-dent, has beendean of the Lib-eral Arts, SocialSystems andHuman Perfor-mance divisionat the collegesince 2009. Pri-or to that posi-tion, she wasdean of LBCCFamily Resources and Educationfrom 2002 to 2009, and was afaculty member in Family Re-sources from 1990 to 2002.

A graduate of Florida State Uni-versity, Hogeland holds a doctor-ate degree in human develop-ment and family science as wellas a master’s in education and abachelor’s in child developmentand elementary education. In ad-dition, she earned her master’sdegree in counseling from Tru-man State University.

Hogeland will be responsiblefor the planning, development,supervision and evaluation offour major instructional divi-sions, and serve as acting presi-dent in the president’s absence,among other duties. She willstart her new position April 1.

A Hollywood screen-writer, a cookware innova-tor, a communications trail-blazer and a wine entrepre-neur are among the recipi-ents of this year’s Weather-ford Awards, Oregon StateUniversity’s annual celebra-tion of lifelong and pioneer-ing entrepreneurship andinnovation.

The event will be heldFeb. 16, at the Hilton indowntown Portland.

Hosted by OSU’s AustinEntrepreneurship Program,the event starts at 5:30 p.m.with a reception, followed bya dinner and the award pre-sentations. Tickets are $95,available until sold out andcan be obtained on the web athttp://ow.ly/8I5Z0 or by con-tacting Mary McKillop, 541-713-8044, email [email protected].

The Weatherford Awardsrecognize pioneering andlifelong entrepreneurs andinnovators. This year, threeof the honorees are nativeOregonians and two areOSU alums.

The awards are namedfor OSU’s Weatherford Hallwhere entrepreneurship andbusiness students can ex-plore their innovations andnew venture ideas in aunique, living learning resi-dence hall.

The recipients of the2012 Weatherford Awardsare:

• Jim Bernau, a nativeOregonian and founder ofWillamette Valley Vine-

yards, purchased the site in1983 and cleared away theold pioneer plum orchardhidden in scotch broom andblackberry vines. He plant-ed pinot noir, chardonnayand pinot gris. WillametteValley Vineyards has be-come one of the region’sleading wineries, earningthe title “One of America’sgreat pinot noir producers”from Wine Enthusiast mag-azine.

• Carolyn Chambers,founder of Chamber Com-munications Corp. and a pi-oneer in the cable televisionindustry, died in August atthe age of 79. Her family willaccept the award in herhonor. A native Oregonian,Chambers earned a degreein business in 1953 at theUniversity of Oregon, whereshe was the sole woman inher class. At 25, just fouryears out of college, sheborrowed $100,000 fromher father and pooled thatwith funds from other in-vestors to launch LibertyCommunications. In 1983,she founded ChambersCommunications Corp.,which today operates ABCaffiliates KEZI in Eugene-Springfield, KOHD in Bendand KDRV in Medford andKlamath Falls. The compa-ny also includes a produc-tion arm, Chambers Pro-

ductions, and ChambersCable.

• Stanley Cheng, chair-man and CEO of MeyerCorp. and founder/owner ofHestan Vineyards. One ofseven children, Cheng wasborn in 1947 in Hong Kong.He attended OSU, where hereceived his degree in me-chanical engineering. In1981, Cheng founded Cali-fornia-based Meyer Corp.,America’s largest cookwarecompany and the secondlargest in the world. In themidst of building his cook-ware enterprise, Cheng,who also received the 2002Humanitarian of the YearAward from the HousewaresCharity Foundation, culti-vated his growing passionfor wine. In 1996, Chengand his wife, Helen, pur-chased a 127-acre propertythat they named Hestan

Vineyards in Napa Valley.• Mike Rich, a Portland

screenwriter whose break-through came in 1998 whenhis script, “Finding For-rester,” was awarded a pres-tigious Nicholl Fellowshipin Screenwriting by theAcademy of Motion PictureArts and Sciences. Withinweeks, it was picked up byColumbia Pictures and wasa holiday season release in2000, starring Sean Con-nery and directed by GusVan Sant. His secondscreenplay, “The Rookie,”starred Dennis Quaid andRachel Griffiths and wasboth a commercial and crit-ical success for Disney in2002. He also wrote thescreenplays for “Radio”(2003), “The Nativity Sto-ry” (2006) and the 2010film, “Secretariat.”

January 2012MID-VALLEY InBusinessA6

OREGON STATE UNIVERSITY

MID-VALLEY INBUSINESS

Weatherford Awards honor innovation

MOVERS&SHAKERS

Taylor

Hogeland

Nearly 300 bills already filed

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MID-VALLEY InBusinessJanuary 2012 A7

Unemployment Rate

U.S. Oregon Linn Co.Benton Co.

16%

14%

12%

10%

8%

6%

4%

2%

0

Source: Oregon Employment Department Note: Data are seasonally adjusted.

Dec. 2010 Dec. 2011Nov. 2011

10.6

7.1

12.7

8.7 9.1

6.2

11.6

8.5 8.9

6.0

11.1

9.4

Mid-Valley Residential ReportUnits sold Units sold Average Averagepast year past year sales prices sales price

Dec. 2011 Dec. 2010 Dec. 2011 Dec. 2010

Albany 432 462 152,843 159,209N. Albany 114 140 227,137 246,155Brownsville 22 18 142,559 177,075Corvallis 496 469 272,966 279,284

Units sold Units sold Average Averagepast year past year sales prices sales price

Dec. 2011 Dec. 2010 Dec. 2011 Dec. 2010

Independence 53 59 158,156 213,637

Jefferson 52 42 205,597 199,914

Lebanon 292 310 135,051 151,786

Philomath 75 79 248,024 242,126

Sweet Home 127 130 117,647 119,579

Source: Willamette Valley Multiple Listing Service

Source: Oregon Employment Department Dec. ’11 Nov. ’11 Dec. ’10 Nov. ’11 Dec. ’10

Dec. ’11 Nov. ’11 Dec. ’10 Nov. ’11 Dec. ’10

Change fromCorvallis MSA (Benton County) Nonfarm Payroll Employment

Source: Oregon Employment Department Change from

Linn County Nonfarm Payroll Employment

Residential Average Sales Price by Area

Th

ou

san

ds

2007 2008 2009 2010 2011

306,557

194,920145,832

261,271

325

300

275

250

225

200

175

150

125

Source: Willamette Valley Multiple Listing Service

The numbers: The Universi-ty of Oregon Index of Econom-ic Indicators slipped 0.3 per-cent in November to 88.8(1997=100).

The good news: Residentialbuilding permits were up a bit.

The neutral news: Althoughinitial unemployment claimscontinued to decline, suggest-ing sufficient economic activi-ty to limit the pace of layoffs,hiring gains remained “tepid,”according to the report’s au-thor, Timothy Duy of the Uni-versity of Oregon.

The bad news: Every othercomponent of the index de-clined, including Oregon em-ployment services payrolls(mostly temporary helpfirms), the Oregon weight-dis-tance tax (a measure of truck-ing activity), consumer senti-

ment, core manufacturing or-ders and the interest ratespread.

The upshot: Duy notedthat the index has experi-enced “a pattern of declinesthat has been associated with

Oregon recession in the past.”Overall, Duy said, the index“continues to suggest cau-tion with regard to the out-look in 2012,” especially whencoupled with the continuingEuropean financial crisis.

Another view: Duy also istracking a new index, athree-month moving averageof the Oregon Measure ofEconomic Activity. Thethree-month average in No-vember was down 0.93,largely unchanged from Oc-tober. (A measure of zerocorresponds to the averagegrowth rate for the period, inthis case from 1990-2011.)The measure indicates thatOregon is growing below thetrend rate of growth estab-lished during the 1990-2011period, Duy said.

To learn more: Check outthe full report at the websitehttp://pages.uoregon.edu/oefweb/

Natural resources, mining and construction 1,190 1,220 1,130 -30 60

Manufacturing 3,250 3,290 3,280 -40 -30

Trade, transportation and utilities 4,410 4,410 4,360 0 50

Information 790 800 810 -10 -20

Financial activities 1,380 1,380 1,360 0 20

Professional and business services 3,700 3,680 3,660 20 40

Educational and health services 5,780 5,780 5,660 0 120

Leisure and hospitality 3,240 3,260 3,420 -20 -180

Other services 1,150 1,160 1,170 -10 -20

Federal government 550 560 580 -10 -30

State government 10,370 10,560 9,730 -190 640

Local government 2,850 2,960 2,890 -110 -40

Total nonfarm payroll employment 38,660 39,060 38,050 -400 610

Natural resources, mining and construction 2,330 2,400 2,160 -70 170

Manufacturing 6,810 6,860 6,600 -50 210

Trade, transportation and utilities 8,510 8,450 8,680 60 -170

Information 390 390 390 0 0

Financial activities 1,240 1,250 1,290 -10 -50

Professional and business services 2,860 2,930 3,140 -70 -280

Educational and health services 4,760 4,730 4,810 30 -50

Leisure and hospitality 2,950 2,890 2,970 60 -20

Other services 1,340 1,340 1,360 0 -20

Federal government 310 320 340 -10 -30

State government 1,140 1,150 1,170 -10 -30

Local government 5,940 5,970 6,520 -30 -580

Total nonfarm payroll employment 38,580 38,680 39,430 -100 -850

Benton County

Linn County

BUSINESS DATA

Index, 1997 = 100

92

91

90

89

88

87

86

U O I N D E X O F EC O N O M I C I N D I CATO R S

June-11 July-11 Aug-11 Sept.-11 Oct.-11 Nov.-11

PORTLAND (AP) —Starbucks CEO HowardSchultz was given a paypackage worth roughly $16million in the company’s2011 fiscal year.

Starbucks performedwell last year, but Schultz’scompensation shrank by 26percent compared to 2010,when he was given $22 mil-lion for bringing the com-pany roaring back from therecession and more thandoubling its profit.

Schultz received a nearly$1.4 million salary in 2011,according to a documentfiled Thursday with the Se-curities and ExchangeCommission. That’s up 8percent from the $1.3 mil-lion salary in the prior year.His cash performancebonus, as well as the valueof his stock and optionawards, shrank.

Starbucks gave him stockawards in 2011 worth $5.5million, which is down 48

percent from the $10.5 mil-lion he was awarded the pri-or year. He was also givenoption awards worth nearly$6 million, down 4 percentfrom the $6.2 million in theprior year.

The company gave him acash performance bonus ofnearly $3 million in 2011,down from $3.5 million theprior year.

Schultz also received$235,294 in other perkssuch as security and use ofthe company plane, com-pared with $231,664 inperks the year before.

Starbucks continued itsstrong performance in 2011,as more customers began tovisit its stores around theglobe. The Seattle-basedcompany’s 2011 fiscal yearrevenue increased 7 percentto $11.7 billion and its profitjumped nearly 32 percent to$1.25 billion, or $1.62 pershare.

Tuesday: Networking event, 5to 6:30 p.m., Enoteca Wine Bar,136 S.W. Washington Ave., Corval-lis. Sponsored by the Associationof Fundraising Professionals Ore-gon and Southwest WashingtonChapter. Open to all fundraisingprofessionals. Meet colleagues inan informal setting and learnabout what AFP has to offer.RSVP: [email protected].

Wednesday:“Securing YourBusiness and Home,” two ses-sions on cyber security, presentedby Linn-Benton Community Col-lege Business and Employer Ser-vices. Speakers: Kelvin Coleman,Department of Homeland Securi-ty; Karen Evens, U.S. Cyber Chal-lenge director; Theresa Masse,chief information security officerfor the state of Oregon. Free to thepublic.Time: 1 to 2:30 p.m., Cen-tral Willamette Community CreditUnion, 7101 Supra Ave. S.W.,Al-bany; 4 to 5:30 p.m., Hewlett-Packard, 1000 N.E. Circle Blvd.,Corvallis. Info: 541-917-4923 orJoseph Bailey at 541-917-4923.

Wednesday: “Cyber Warriors:Choosing a Career in Cyber Se-curity”, presented by Linn-Ben-ton Community College Businessand Employer Services. Time: 3-4p.m., Hewlett-Packard, 1000 N.E.Circle Blvd., Corvallis. Free to thepublic. Info: 541-917-4923 orJoseph Bailey at 541-917-4923.

Thursday: Downtown Brown-Bag Workshop, noon, conferenceroom, Willamette NeighborhoodHousing Services, 257 S.W. Madi-son Ave., No. 113, Corvallis. For-mer Police Chief Lee Benson willpresent “Avoiding Identity Theft.”Sponsored by the DowntownCorvallis Association. Registra-tion: 541-754-6624 [email protected].

Friday through Sunday: LinnCounty Spring Home Show,Linn County Expo Center, 257S.W. Madison Ave., No. 113, Al-bany. Hours: 3 to 8 p.m. Friday, 10a.m. to 8 p.m. Saturday, and 10a.m. to 4 p.m.

Friday: Salmon and Jazz, 5p.m., Philomath Scout Lodge,660 Clemens Mill Road. Dinner,auction and dance. Information:www.philomathrotary.org.

Feb. 7: Phlebotomy programinformation session, 1 to 3 p.m.,conference rooms B/C, Samari-tan Lebanon Community Hospi-tal, 525 N. Santiam Highway. Freeinformation session on the phle-botomy program that will runJuly 30 through Nov. 16 at thehospital’s Health Careers Train-ing Center and the Linn-BentonCommunity College Lebanon

Center. Information: LBCC Busi-ness, Healthcare and WorkforceDivision, 541-917-4923.

Feb. 7: “Responsible AlcoholSale Training” for Linn County al-cohol retailers and service estab-lishments. Presented by LinnCounty Alcohol & Drug PreventionProgram with Linn Together andthe Lebanon Police. Time: 2 to 4p.m., Lebanon Public Library, 55Academy St., Lebanon. Free. Info:Danette Killinger, 541-967-3819 oronline at www.linntogether.org.

Feb. 8: Society of Human Re-source Management (SHRM)chapter monthly breakfast meet-ing. Topic: “Employment Law Up-date: Key Developments from2011 & What to Expect in 2012.”Presenters: Randy Sutton andDavid Briggs, Saalfeld Griggs PC.Time: 7:30-9 a.m., Allann Bros.,1852 Fescue St. S.E., Albany.Cost: Free to society members;$15 nonmembers. Info: [email protected].

Feb. 8: “Legal Options & Infor-mation for Senior Care.” Speak-er: Steven A. Heinrich, attorney atlaw. Time: 3 to 4 p.m., Corvallis-Benton County Public Library,Community Room, 645 N.W. Mon-roe Ave., Corvallis. Free to thepublic. Info: Email Dennis Dunmy-er, [email protected].

Feb. 16: Lebanon Area Cham-ber of Commerce Business Af-ter Hours. Time: 5 to 7 p.m.,Time Challenge, Lebanon Center,75 Tangent St., Lebanon. Cost $8.Info: 541-258-7164.

Feb. 16: Business Trainer Pro-gram informational meeting forAlbany Area Chamber of Com-merce members. Presented byAlbany Area Chamber of Com-merce and LBCC Small BusinessDevelopment Center. Time: 6 to 7p.m., Phoenix Inn, 3410 SpicerDrive S.E., Albany. Free for cham-ber members. Registration dead-line Feb. 14. Info: 541-926-1517.

Feb. 21: Expanding Your Lead-ership Edge workshop,“Com-munity Leadership.” Facilitator:Joseph Bailey, Linn-Benton Com-munity College. Speaker: AlbanyMayor Sharon Konopa. Time: 8a.m., chamber office, 435 FirstAve. W., Albany. Cost: $10. Info:541-926-1517.

Feb. 21: Albany Area Chamberof Commerce Business AfterHours. Time: 5:15 to 7 p.m., RedCanoe Credit Union, 810Burkhart St. S.E., Albany. Cost:$6 registered chamber mem-bers; $7 chamber members atthe door; $10 nonmembers. Info:541-926-1517.

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Starbucks CEO paid$16 million in 2011