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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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