KATU TV-2's Melica Johnson Covers Salem - Salem Business Journal
KATU TV-2's Melica Johnson Covers Salem - Salem Business Journal
KATU TV-2's Melica Johnson Covers Salem - Salem Business Journal
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april 2008 <strong>Salem</strong> <strong>Business</strong> <strong>Journal</strong> page<br />
Protecting the Local Economy<br />
We are all watching the national economy<br />
carefully to prepare for whatever challenges<br />
it may give us here in <strong>Salem</strong>. It reminds me<br />
of 2003 when I first took office as <strong>Salem</strong>’s<br />
Mayor. Our local unemployment rate was<br />
9% and it is currently 5%. The downtown<br />
vacancy rate was 24% - now down to 7%. No<br />
wonder it seems like time flies by so quickly<br />
- it has been a busy five years turning these<br />
statistics around to the positive.<br />
<strong>Salem</strong> and the local area may not be<br />
impacted as badly as other areas nationwide<br />
or statewide. We have a large public sector<br />
employment base and a true diversity of<br />
private businesses. One of our industries<br />
is construction where thousands have<br />
found work that pays family wages, plus the<br />
supporting vendors who make cabinets, sell<br />
carpeting, furniture, and appliances.<br />
There has been some major slowing in<br />
residential new construction, but remodeling<br />
and home sales have stayed fairly healthy.<br />
One sector that has stayed strong is the<br />
commercial and industrial construction,<br />
including <strong>Salem</strong> Hospital, the Meridian at<br />
Mission and Commercial, the upcoming<br />
Kroc Center, the Senior Center, Church and<br />
OECDD...Continued from page<br />
Grants and the state Special Public Works<br />
Fund among other responsibilities.<br />
“In spite of these very disparate<br />
responsibilities, all divisions have been<br />
asked to work toward one broad mission<br />
– ‘To Advance Oregon’s Economy’ – and<br />
success agency-wide is measured by<br />
one metric: job creation,” explained<br />
Commission Chair E. Walter<br />
VanValkenburg. “The result has been an<br />
inability for the divisions to focus on the<br />
highest and best use of human and fiscal<br />
resources. All have suffered by being<br />
conjoined in the eyes of the Legislature<br />
and our many partners statewide.”<br />
The Commission’s report concluded that<br />
while community-based infrastructure<br />
functions and business development<br />
activities remain equally important, their<br />
objectives, deliverables and customers are<br />
different.<br />
“After months of talking to stakeholders<br />
and partners, legislators around the state<br />
and staff within the agency, we developed<br />
a series of recommendations that we<br />
presented to the Governor today,” said Chair<br />
VanValkenburg. “In short, we recommended<br />
that the activities of the agency be separated<br />
to give clarity, accountability and viability<br />
to the two distinct kinds of work the agency<br />
currently pursues.”<br />
The reorganization recommended<br />
by the Commission would charter a<br />
dedicated department to conduct business<br />
development. Community development<br />
functions would be separated from business<br />
development.<br />
The new business development focus<br />
would leverage innovation and strategic<br />
partnerships that promote Oregon’s<br />
competitive advantages in the global<br />
economy. It will be a catalyst of sustainable,<br />
environmentally sensitive economic growth<br />
The Mayor’s view<br />
Trade Streets, and the projects at Broadway<br />
and Market Streets. These were projects that<br />
began negotiations from 2004 through 2006<br />
that are now ready for implementation into<br />
mixed-use and community services. These<br />
will employ those electricians, plumbers,<br />
masons, and others who make up a crucial<br />
part of our employment base.<br />
We have also seen our crime rates go down<br />
nearly across the board, but harder times<br />
may threaten those figures. Often people<br />
who find themselves out of work turn to<br />
inappropriate behavior, including crimes,<br />
to support themselves. Family tensions<br />
often boil over into child abuse and the<br />
breakup of marriages. It makes it even<br />
more important that we financially support<br />
the social services that provide the safety<br />
net for those who need help to get through<br />
the challenges that may lie ahead.<br />
But maybe the best thing we can do as<br />
elected officials and community members<br />
is to continue strong support for economic<br />
and provide consultation services in<br />
relevant specialties like lean manufacturing<br />
and sustainable business practices.<br />
Additionally, business development<br />
staff will work with both traded-sector<br />
and community-based businesses directly<br />
or through enhanced partnerships with<br />
regional economic development agencies.<br />
Community Development activities will be<br />
more adequately characterized as “Public<br />
Works.” These functions will be refocused<br />
to ensure a sustainable relationship between<br />
the natural and built environments.<br />
An asset management model will provide<br />
the framework for much of Public Works’<br />
efforts. This new system will inventory<br />
and manage the long-term life cycle of<br />
community infrastructure systems, and<br />
create objective criteria from which the<br />
Legislature can make its long-term budget<br />
decisions.<br />
The Commission also proposed rewarding<br />
those communities that pursue public<br />
works projects that are environmentally<br />
progressive. The outcome will be better<br />
health and safety of communities, abili ty<br />
to help solve the state’s long-term water<br />
issues and incentives for communities to<br />
seek more holistic, sustainable water and<br />
wastewater models.<br />
“We believe that by separating the<br />
structure to better accommodate the<br />
distinct work of the different divisions, we<br />
have established an essential framework<br />
that positions both for future success,”<br />
said Chair VanValkenburg. “This shift will<br />
help offer clarity of purpose for the staff,<br />
our partners around the state and for the<br />
Legislature, who is tasked with making<br />
difficult budget decisions each session.”<br />
The Governor is going to take the<br />
recommendations of the Commission under<br />
advisement and will give final direction to<br />
agency leadership later next month.<br />
Janet Taylor<br />
development, education, and safe<br />
communities. These are the factors that<br />
help us to be able to retain and attract the<br />
varied job opportunities, which in turn<br />
reduces social service needs and helps us<br />
create affordable housing choices.<br />
The economic development leader in the<br />
area is the Strategic Economic Development<br />
Corporation – SEDCOR- who, led by Ray<br />
Burstedt, is making major commitments<br />
to retain existing jobs and attract new<br />
businesses. The City has been working<br />
closely with Ray along with the Oregon<br />
Economic and Community Development<br />
Department and Portland General Electric<br />
to foster an atmosphere of partnerships<br />
and cooperation that companies need to<br />
succeed. When you add in the assistance<br />
of Chemeketa Community College with<br />
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