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Economic Development in Oregon’s Mid-Willamette Valley

Building a Future in the Beverage Industry

Fall 2019


ADVERTISER INDEX Thank you for your support

Fall 2019 Features 4

Ag & Artisans

In this Issue 2 3

SEDCOR Board and Staff A Harvest of Opportunity President’s Message by Erik Andersson

7

Ag & Artisans Profiles

Bois Joli Vineyard • La Familia Ciders • Vagabond Brewing Abiqua Spirit Distillery

11 Insights from the Chemeketa Center for Business & Industry Meghan Gallop, Small Business Development Center

12 County News YAMHILL - Spirits: Distilling the Past, Present and Future MARION - Third Bridge Still Needed in Mid-Willamette Valley POLK - Celebrating Willamette Valley Harvests

16 City News Newberg’s New Community Vision Nears Completion

18 Economic Development News

OEN Names Venture Catalyst for Mid-Willamette Valley • New Marion County Economic Development Coordinator • Jenni Kistler Joins SEDCOR as Operations Director • Independence Hosts Startup Weekend

26 New Members Beutler Exchange Group, LLC • Berger International Chemica Technologies, Inc. • Mariah Hurlburt, New York Life • Shadya Jones, Coldwell Banker Commercial Mountain West Real Estate Inc. Montgomery Construction Group Corporation

28 New & Renewing Members On the Cover

Christian DeBenedetti of Wolves and People. Photo by Rusty Rae.

Aldrich Advisors................................................................22 Bank of the Pacific.............................................................. 1 Budget Blinds.....................................................................22 CanStaff Employment Services.....................................27 Cherriots.............................................................................15 Citizens Bank���������������������������������������������������������������������� 3 City of Monmouth�����������������������������������������������������������23 City of Salem���������������������������������������������������������������������25 Coldwell Banker Commercial.........................................25 Covanta Marion................................................................14 Datavision...........................................................................27 Dale Carnegie....................................................................23 Dalke Construction Co.��������������������������������������������������13 EnergyTrust of Oregon���������������������������������������������������21 Express Employment Professionals�����������������������������16 GK Machine.......................................................................16 Grand Hotel in Salem.......................................................13 Green Acres Landscape��������������������������������������������������25 GT Landscape Solutions..................................................26 Hi Tek Electronics.............................................................23 Huggins Insurance............................................................26 Kaiser Permanente...........................................................29 MAPs Insurance................................................................21 Mt. Angel Festhalle............................................................. 9 Multi/Tech Engineering Services.................................... 8 Oregon Cascade Plumbing & Heating.........................27 Oregon Community Foundation...................................17 Overhead Door Company..............................................16 Pence Construction.............................Inside Front Cover Personnel Source................................................................ 9 Powell Banz Valuation.....................................................11 Power Auto Sales..............................................................12 Print Specialties����������������������������������������������������������������15 Rich Duncan Construction����������������������������Back Cover Salem Contractors Exchange.........................................14 Salem Convention Center����������������������������������������������18 Salem Electric....................................................................21 Salem Health......................................................................19 Select Impressions�����������������������������������������������������������28 Sherman Sherman Johnnie & Hoyt, LLP��������������������12 SVN Commercial Advisors..............................................24 Thomas Kay Flooring & Interiors..................................19 Ticor Title���������������������������������������������������������������������������10 White Oak Construction������������������������������������������������20 Willamette Community Bank.......................................... 6

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Mt. Angel Publishing is proud to work with SEDCOR to produce Enterprise. To advertise in the next issue, contact Jerry Stevens: 541-944-2820 SEDCOR@mtangelpub.com www.sedcor.com

Enterprise Fall 2019 1


SEDCOR Staff Executive Council Chair Daryl Knox

Partner, The Aldrich Group, CPA

Past Chair Mark Hoyt

Partner, Sherman Sherman Johnnie & Hoyt, LLP

Secretary/Treasurer & Chair Elect Michael Fowler CEO, Cabinet Door Service

Members at Large

Rich Duncan

Erik Andersson

President, Rich Duncan Construction Inc.

President

Lesa Goff

503-837-1800

Senior Vice President/Loan Team Leader Wells Fargo Bank

eandersson@sedcor.com

Nathan Levin

N. Levin Industrial Real Estate

Steve Powers

City Manager, City of Salem

Steve VanArsdale

General Manager, Garmin AT, Inc.

Kevin Cameron

Jenni Kistler

Marion County Commissioner

Director of Operations 503-588-6225

Board of Directors Ryan Allbritton

Region President, US Bank

Bruce Anderson

Regional Community Affairs Manager, NW Natural

Curt Arthur

Owner, SVN Commercial Advisors

Ricardo Baez

President, Don Pancho Authentic Mexican Foods, Inc.

Chuck Bennett Mayor of Salem

David Briggs

Trial Lawyer, Partner, Saalfeld Griggs PC

Patricia Callihan-Bowman

Owner/Career Coach Express Employment Professionals

Cathy Clark

Mayor of Keizer

Alan Costic AIA

President, AC+Co. Architecture

Brent DeHart

jkistler@sedcor.com Michael Keane

Attorney/Shareholder Garrett Hemann Robertson, P.C.

Diana Knous

Regional Business Manager, Pacific Power

Jennifer Larsen Morrow

President, Creative Company, Inc.

Rod Lucas

Owner, Turner Lumber, Inc.

Johnny Mack

Executive Dean of Career and Technical Education Chemeketa Community College

Rick Olson Yamhill County Commissioner

Kim Parker-Lleranas

Craig Pope

Polk County Commissioner President/CEO, Modern Building Systems, Inc.

David Frances

Chief Credit Officer, Willamette Community Bank

Theresa Haskins

Business Market Manager Portland General Electric

Byron Hendricks

nharville@sedcor.com

James Parr

Amy Doerfler James Dooley

503-837-1804

CFO, Salem Health

Jim Rasmussen

President, Larsen Flynn Insurance

Marion County Business Retention & Expansion Manager

Executive Director Willamette Workforce Partnership

Life Insurance Secretary/Treasurer, Doerfler Farms, Inc.

Nick Harville

Mark Raum

VP Commercial Lending, Umpqua Bank

Cory Redding

Owner, CD Redding Construction

Tony Schacher

General Manager, Salem Electric

Alex Paraskevas Rural Innovation Catalyst Polk County Business Retention & Expansion Manager 503-837-1803 alexp@sedcor.com

Scott Snyder

Regional Manager, The Grand Hotel in Salem

Jenna Steward

President, Berkshire Hathaway Home Services Real Estate Professionals

Agritourism Manager, Crosby Hop Farm

George Jennings

Foundation Director, Legacy Silverton Medical Center

Abisha Stone

Kathy Tate

Yamhill County Business Retention and Expansion Manager

Counsel to the President, Mountain West Investment Corporation

Randy Stockdale

Jamie Johnk

CEO, Online NW

Ken Jundt

President, The Ulven Companies

Economic Development Director, City of Woodburn Regional Manager, Columbia Bank

Dan Ulven

Colm Willis

Marion County Commissioner

503-507-4175 astone@sedcor.com

626 High Street NE, Suite 200 • Salem, OR 97301 503-588-6225 • info@sedcor.com • www.sedcor.com

2 Enterprise Fall 2019

The Ag & Artisan Pairing


A Harvest of Opportunity While autumn may be synonymous with “pumpkin spice” for a lot of people, in the Willamette Valley we know it to be a time of harvest. Our wineries will be drawing thousands of people from all over to sample their fine products, and I know many will be surprised to experience the variety of other delights produced from locally-grown agriculture. When we started to come up with the theme for this edition of Enterprise, we wanted to broaden the idea of the harvest to include other beverages produced in the region, namely beer and cider. In the following pages you’ll learn about a local brewery which is not only expanding its footprint to other cities along I-5 but also to Japan. You’ll see the perspective of a grape grower who highlights that connection between the bottle of wine you enjoy and the farmers who nurture the grapes. There’s also a story of a Salem cidery that has identified a unique market opportunity and prides itself by “producing the Erik Andersson

American Dream in every bottle”. Our cover story, highlights three businesses, one each in Marion, Polk and Yamhill Counties, that will

SEDCOR President

hopefully benefit from the passage of Senate Bill 287. Oregon’s Farm Brewery bill, signed into law by Governor Brown on June 4, will go into effect on January 1, 2020. The hops industry is a highly visible part of Willamette Valley agriculture and a world-class one at that; for example, you may recall reading of Crosby Hop Farm’s series of international collaborations with 36 breweries from 18 countries in a previous issue of Enterprise. Oregon’s Farm Brewery law will allow brewing operations up to 15,000 barrels annually on farms with on- site (or contiguous) hop production. Our communities, hop farms and brewers will need to work together to implement this opportunity, but we are excited to see how this can help diversify our economy and add more value to what we grow in the Mid-Willamette Valley. I would be remiss to not mention some changes here in the SEDCOR office. We welcome our new Director of Operations, Jenni Kistler, who is a great new addition to the SEDCOR team. We juggle a lot of events and activities in this office, and Jenni’s background with the League of Oregon Cities shows that she can juggle with the best of us. With Jenni’s arrival comes the news that after 22 years at SEDCOR, Tami Lundy made the decision to start a new chapter in her life and move to Denver to be closer to her daughter, Lauren. Tami has been the face of SEDCOR with our members, sponsors and program speakers for the majority of the organization’s existence. (I’m sure she’d like me to remind readers she started here at the age of 17 … but I digress.) Before coming on board as president of SEDCOR, I worked with Tami as a board member, sponsor and Oregon Economic Development Association officer, and always knew her to be resourceful, knowledgeable, efficient and fun. What I didn’t appreciate until working here is her passion for SEDCOR, its mission and its members; her dedication to this organization and ownership of her responsibilities cannot be overemphasized. She has been helping us through this transition, allowing SEDCOR for a couple months to boast having a Denver office. As friends and colleagues we will miss her and wish her and her husband Larry all the best in their new life in Denver.

— Erik

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Enterprise Fall 2019 3


Mid-Valley synergy helps growers, brewers succeed By James Day

In real estate the mantra is location, location, location. It works for the world of brewing as well. It’s no accident that the stunning growth of craft brewing in the Pacific Northwest is partly a function of the region being the source of more than 95 percent of the hops grown in the United States. And although the craft beer industry has faced challenges in recent years, area growers and brewers remain positive that the best days lie ahead. “We are seeing a proliferation of new hops enter the market each year, with many more to come,” said Blake Crosby, chief executive officer of the Crosby Hop Farm in the Marion County town of Woodburn. “There are only so many barrels of beer production to absorb all of the new hop brands. The share of many of the major hop varieties will eventually make way for smaller niche releases that increasingly squeeze their way into the market. “This is also reflective of consumer tastes and demands, which are extremely dynamic and changing quickly. Needless to say it’s a fascinating and exciting time to be a hop breeder, grower and beer drinker.”

Statewide hop acreage is down by about 219 acres, said Michelle Palacios, administrator for the Oregon Hop Commission, but she adds that those figures are deceptive. “This is primary the result of changing varieties,” Palacios said. “Growers have removed established plantings and replaced (them) with a new variety. The crop does not reach maturity the first year it is planted. Therefore, we anticipate acreage will be up in 2020 when the 2019 planted hops are harvested.” Palacios noted that more than 7,500 acres were strung for hops in 2019. “We continue to see sustained and growing demand for highquality, differentiated aroma hops around the world,” Crosby said. “As mentioned, many of these varieties are proprietary and bred by private companies, which has changed the supply chain dynamics. Generally, these varieties do contribute greater financial returns for growers. However, not all hop companies have equally proprietary hops. Depending on your market channel and hop dealer of choice the opportunities are variable for traditional hop growers.” Crosby added that among the proprietary varieties, Citra and Mosaic “are leading the pack,” while noting “strong, growing demand” for Amarillo, El Dorado, Comet, Idaho 7th and Strata.

Photo courtesy Newberg Graphic

Christian DeBenedetti, a longtime beer journalist and writer, made his dream come true by opening the Wolves and People Farmhouse Brewery in Newberg in 2016. The brewery is named for a game of tag DeBenedetti used to play on the farm with his family as a child. It represents “wild things and tamed things,” he said. “Old traditions and new experiments.”

4 Enterprise Fall 2019

Working together With all this experimentation going on it helps that the brewers who will be using the new varieties are virtually next door and in a position to collaborate. “I knew this was going to be a great location, just a short drive away from some of the best hops in the world,” said Christian DeBenedetti, who opened Wolves and People Farmhouse Brewery in the Yamhill County town of Newberg in 2016. “We love our local hop growers and we’re lucky so many of them are close and we’ve become friends. We get a lot of hops from Crosby. They come here to our taproom and barn so they can see how things are looking. We have wonderful ongoing conversations with growers about what’s looking good (in the industry).” DeBenedetti is experimenting with some hop plantings of his own on the family-owned Springbrook Farm that includes Wolves and People. He also is working with Oregon State University soil experts on barley strains. He also grows berries, peaches, cherries and apricots which he uses in some of the Belgian-style beers Wolves and People produces.

The Ag & Artisan Pairing


Recently retired Rogue brewmaster John Maier inspects Adair hops at the company’s hop farm in Independence. Photo courtesy Rogue Ales & Spirits.

“This is an amazing place to be doing what we are doing,” DeBenedetti said. “Our site has the potential for us to grow every ingredient. That’s the dream I started with. And it’s exceedingly rare when you have a site where all of these things can come together.” The “everything home-grown” model is one that also has worked for Rogue, one of the industry’s giants. Founded in Ashland in 1988, Rogue began growing its own hops near Independence in Polk County in 2008. Rogue started small but now has 52 acres, growing hops on 22 acres while also turning out pumpkins, marionberries, cucumbers and experimental items from its “revolution garden” for its “innovation brews.” “It helps us maintain quality and supply while providing the opportunity to experiment with new and unique hops,” said Bliss Dake, vice president of marketing for Rogue. “In addition,” Dake said, “growing our own hops is in line with our do-it-yourself, ground-to-glass philosophy.” Dake proudly notes that Rogue is the only farmer, brewer, cooper and distiller in the world.

The challenges Another mantra in the business world is that if you want to make a small fortune in the wine business … start with a large fortune. It can apply to beer, too. DeBenedetti of Wolves and People spent decades as a beer writer and journalist, with his book “The Great American Ale

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Trail” requiring a year of research before it was published in 2011. “(Writing the) book became kind of a graduate school for myself,” he said. “I learned a lot about the challenges, pitfalls and ups and downs of being a brewer.” And yet he says that he was “super naïve about the amount of work it would take” to get his own brewery off the ground,” particularly the modifications a 1912 barn would require to get up to code. “I’m a dreamer,” he said, “and I overlooked some fundamental things that wouldn’t have been required 20 years ago. I really put a lot of work into the building.” DeBenedetti isn’t buying the “oversaturation” story. “You can’t have too many breweries,” he said, although he hedged a bit and indicated that it “might be a bit of an overstatement.” DeBenedetti remembers in the 1990s when there were 12 breweries in Portland “and people were worried that that was too many even then. We have 800 operational wineries in Oregon. You don’t hear arguments that we have too many wineries.” DeBenedetti said that he planted his flag in Yamhill County because it is wine country. The Rex Hill winery is next door. “Smaller, rural communities can support rural breweries,” he said. “It will be great to grow the beer scene here.” DeBenedetti also noted that challenges in the beer industry are not fundamentally different than those in other businesses. “A lot of people have left in the last five years, but they Continued next page

Enterprise Fall 2019 5


HOPS AND BEER continued from page 5

Zak Schroerlucke is the marketing manager at Crosby Hop Farm. Schroerlucke says that meeting brewers’ hop needs “at times can be a delicate balancing act.”

Blake Crosby, the CEO of Crosby Hop Farm, represents the fifth generation of his family to run the business.

might not have thought things out too well,” he said. “Some are struggling. Even big ones are struggling. There is always going to be change in the beer market. There is some uncertainty and chaos, some corrections in play. But there also are some areas of opportunity that haven’t been tapped yet. “Oregon is very well known across the world for the quality of what we do.” The hop experts agree. “There have been closures and consolidations,” said Palacios of the Oregon Hop Commission, “but overall the craft beer market remains a solid market for Oregon hops. Regardless of size,

Michelle Palacios of the Oregon Hop Commission says that hops acreage is shifting toward proprietary varieties.

brewers and hop growers have a symbiotic relationship. (It’s) very much a partnership where brewers and growers work together to make great beer.” Officials at Crosby Hop Farm are even more optimistic. “The industry is still on track to see hundreds, if not thousands of new breweries in the U.S. over the next few years,” said Zak Schroerlucke, the company’s marketing manager. “We support healthy craft beer industry growth. Brewers can experience challenging times, whether it’s navigating rapid growth or a decline. In those periods, we seek the best way to move forward together.”

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6 Enterprise Fall 2019

The Ag & Artisan Pairing


Ag & Artisans Profile



Bois Joli Vineyard Rob Kistler & Barb Bond, Proprieters

Tell us about your business. Fifteen years ago, when Rob and I were nearing retirement from our professions as an architect and professor, respectively, we would have laughed at the idea of starting a new career as farmers. A trip to Italy in 2008 changed everything. We stayed in agriturismos (“guest farms”), ate food and drank wine that was grown and made on the premises, and decided, “we want this lifestyle!”

Bois Joli owners Rob Kistler and Barb Bond.

Returning home to Oregon, we found a perfect spot for living that lifestyle in the hills near Amity. A small “hobby” vineyard of old-vine Riesling was already on the property, and we began a

and relentless marketing. It didn’t work for us. So, we sell fruit to wineries who have the winemaking skills, production scale and

steep learning curve that continues today. We already knew that

marketing savvy that we lack.

Oregon pinot noir was raising eyebrows around the world for its

What are your industry challenges?

outstanding quality. We discovered that we had serendipitously settled into a spectacular sub-AVA (“American Viticultural Area”): the Eola-Amity Hills. We learned that we could grow high-quality fruit on our property, and there was a good market for it. Where do you distribute? We found a wonderful buyer for our Riesling (Brooks Wines). Our neighboring vineyard owners and winemakers were incredibly generous with their knowledge and fine wines – social events were (and still are) amazing! We took classes, subscribed to the Capital Press (a weekly newspaper devoted to farming in the Northwest), expanded our vineyard to nine acres (planting pinot noir and chardonnay), bought his and hers tractors, and learned how to be farmers. “Hey,” we still tell ourselves as we trudge up and down the steep slopes of our vineyard, “this beats going to a gym to stay in shape”. Because the profit margin for selling finished wine is potentially much greater than for selling wine grapes, we tried producing commercial wine at a neighbor’s winery for a couple of years. Our wine was great, but we quickly gave that up. “Custom crush” (making wine at a winery you don’t own) is expensive, and we don’t have the volume to justify investing in our own winery. Most importantly, selling wine requires serious

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Like most other forms of farming, this is not lucrative. Growing high-quality fruit is hands-on, labor-intensive and expensive. We do most of the “tractor work” ourselves – spraying to control fungi, and mowing weeds -- and we employ a terrific management firm for the rest of the work. Ignoring our own time as well as the initial costs of creating the vineyard, we have a small but comfortable profit margin. What are your goals for the future and is there any news or highlights about the business you’d like to share? It is exciting to be part of an industry that is emerging to greatness in Yamhill County. But I also have serious political, social, and economic concerns about farm labor and about the increasing wealth disparity in my community. As I strive for economic development in my own community, fueled in part by tourism that results from the robust wine industry, I worry about potential negative impacts of gentrification. As an ecologist as well as a farmer, I am also concerned about the massive expansion of vineyards in the Willamette Valley and the loss of native habitat. But every time Rob and I declare, “Its wine o’clock,” and sit on our deck with glasses of delicious wine from our own vineyard, we rejoice that we are living our dream. Bois Joli Vineyard can be reached at 541-908-2515

Enterprise Fall 2019 7


Ag & Artisans Profile  What are your industry challenges?

Tell us about your business, employees, and beverage items produced. La Familia Cider officially launched Cinco de Mayo of 2017. We make hard cider blended in the spirit of traditional Mexican aguas frescas (fresh juices).  Our flavors began with the recipes of our grandmother, Lourdes.  Bringing her love of cooking and life experience, originating in Mexico City, and combining our flavors with 100 percent NW apples.  We currently have a grand total of two employees, but are about to hire several part time brand ambassadors.  They will all work alongside an army of distributor reps to reach new customers statewide.  All ciders are available on draft, there are three flavors in bottles and two in 12 oz cans.   Where do you distribute? Our ciders are currently distributed statewide, you can find them in several hundred restaurants, bars and stores.  Who founded your company? There are a total of four co-founders.  Shani, Jose, Jay Jay and Jazz Gonzalez.  Yes all familia!  The team primarily supports Jay Jay’s efforts since sales are the lifeblood of any company.  Jazz oversees the company’s marketing efforts. She ensures our message reflects our values which are Family, Integrity, Product Quality, Commitment to Community and Having Fun.  Both Jay Jay and Jazz were raised in Salem.  Shani, originally from Los Angeles, is currently an immigration paralegal.  She works behind the scenes organizing all the events and will also head new product development.  Jose, currently Principal Broker of longtime Salem business Tu Casa Real Estate, assists his family with Business Development.  We intend for this to be a generational business and his experience will help them reach their goal.  

The cider industry, which experienced rapid growth in the last several years, is relatively new but has deep roots. It was the most consumed alcoholic beverage drink before Prohibition.  As part of the prohibition law, farmers were made to cut down cider apple trees.  When Prohibition ended, the ability to scale the industry was not possible due to the total time needed to develop and grow apple orchards.  The beer industry was able to rebound quickly and has held the top spot ever since.  Oregon has the highest per capita consumption of cider, which is both a blessing and a curse.  We have tons of great locally produced cider!  It’s very competitive.  La Familia Cider has a recognizable niche and that allowed it to grow.  The story and flavors are unique and that has helped it develop a strong following.   What are your goals for the future and is there any news or highlights about the business you’d like to share? Our dream is big, since day one.  We intend to be the Corona of the Hard Cider world!  We will soon announce our first taproom right here in Salem!  We also recognize naming our company La Familia comes with a huge responsibility and that’s why we made a commitment to always donate a portion of our proceeds to helping keeping families together.  We understand both the opportunity and challenges on our path, and will be utilizing both investors and strategic partners to reach our goals.  Salud!  Find La Familia at www.lafamiliacider.com or 503-770-0113.

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Ag & Artisans Profile



James Cardwell, Dean Howes, and Alvin (A.J.) Klausen, the three owners of Vagabond Brewing. Tell us about your business, employees, and beverage items produced. Vagabond Brewing is a veteran-owned craft brewing company based in Salem, Oregon. We currently have four locations up and down the valley in Salem, Albany and Portland. We employ almost 60 people in the beer service and production industry. Our focus is on clean, refreshing beer brewed with local ingredients and styles that range from classic to cutting edge. Our most popular beer is the Attack Owl IPA, named after the large owl that was fond of attacking joggers in a downtown Salem park in recent years. Where do you distribute? We currently direct most of our production to our four locations and have managed to grow faster than industry standard using this model. We do self distribute beer to a select number of local accounts and festivals based on availability and seasonality. Additionally we have found growing success exporting a limited number of kegs to Japan. Their thirst for Oregon craft beer as grown significantly in recent years. Who founded your company? Vagabond is founded, owned and operated by Dean Howes, James Cardwell, and Alvin Klausen. The three of us served in the Marines together during the early 2000’s and have a total of nine deployments including Iraq, Afghanistan and East Africa. After our service we spent some time traveling the world and unwinding from our military experiences. We settled back in Oregon and while attending school put together the plan for the brewery.

What are your industry challenges? Craft beer as an industry has changed dramatically even in the 5+ years we have been in business. The economic landscape of this country as well as the shifting demographic in Oregon all play a part in how people’s spending habits and lifestyle choices play out. We have been fortunate enough to stay on top of trends in both craft beer and business to succeed even when others decline or even fail. We are confident that as the industry changes we will continue to pivot with consumer tastes as well as provide engaging places for people to congregate, celebrate and enjoy craft beverages for years to come. What are your goals for the future and is there any news or highlights about the business you’d like to share? The future of Vagabond is very bright. With every opportunity or expansion we have undertaken there has been thoughtful consideration. We always look at the potential for growth and how it will benefit the company. We have recently expanded our production capacity significantly as well as added a full service bar and restaurant location in Portland. While we have a few ideas for the future, the plan is to grow into some of our new capacity and build on our success at each location. We feel that with a strong footing we will be poised to take advantage of any new project that comes our way. Find Vagabond Brewing at www.vagabondbrewing.com or 503-512-9007.

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Ag & Artisans Profile 

Tell us about your business and beverage items produced. Abiqua Spirit Distillery will soon celebrate the completion of its first year in business and what a ride it has been. “The project” that became our distillery was born from a decent crop of potatoes, a bride with a wild suggestion and a lot of mathematics. The family was gathered at a quiet sitting area in 2014 pondering the uses of a grand haul of potatoes grown that year when Youlia Messick offhandedly suggested making vodka with the potatoes. The suggestion could have been easily overlooked but was built up by the fact that she is Belorussian and generally describes native Belorussians as the biggest fans of potatoes in the world.

distillery, gained permits, designed systems and generally, had a good time. In October of 2018 we delivered our first product to market. We now have three products that have received overwhelming approval from the public. Silverton Ultra-Premium Potato Vodka won gold in our fourth month of operation at American Distilling Institute’s annual spirits competition. The following weekend San Francisco World Spirits Competition gave us three silvers, one for each of the three products entered; Silverton Ultra-Premium Potato Vodka, Gallon House Gin and Üla Orange Liquor.

Who founded your company? Fast forward a few years of planning, discussion, education and paperwork. Partners Adam Messick and Cody St John built a Partners Adam Messick and Cody St John.

What are your goals for the future and is there any news or highlights about the business you’d like to share? There will always be some uncertainty in what that future holds but we do know that Abiqua Spirit Distillery will keep making great spirits. The distillery is certainly growing and we are committed to the idea that every new spirit we make maintains the same high quality that we have achieved with our previous spirits. With much certainty we know there are people out there, clinking glassware containing our spirits and enjoying their libations which makes this distillery business, much more enjoyable. Find Abiqua Spirit Distillery at www.abiquaspiritdistillery.com or 503-837-9869.

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INSIGHTS FROM THE CHEMEKETA CENTER FOR BUSINESS & INDUSTRY

SBDC Announces New SBM Program Coordinator

Meghan Gallop Small Business Management Coordinator, Small Business Development Center Chemeketa Center for Business & Industry

This July, former Chemeketa Marketing Coordinator Meghan Gallop joined Chemeketa’s Small Business Development Center (SBDC) as its Small Business Management (SBM) program coordinator. With 13 years of experience in marketing, communication and graphic design, Meghan has committed her career to serving small businesses, nonprofits and institutions of higher education throughout Marion, Polk and Yamhill counties. She’s deeply committed to building strong communities through helping others succeed. “Small businesses add such variety and charm to our communities,” Meghan said. “It’s an honor to serve the owners and entrepreneurs behind them.” Meghan will bring a diverse assortment of new presenters to this year’s SBM and SBM Strategic programs and increase the opportunities for participant networking and leadership development. “I believe business owners have a lot to share with one another and I can’t wait to see the collaborative and supportive energy among participants.”

SBM Program Now Open for Enrollment At Chemeketa’s SBDC, we recognize the important roll small businesses play in our community. That’s why we’re dedicated to providing a supportive, collaborative environment and practical, cutting edge training designed with business owners in mind. If you feel you’re pouring your life into your business but not seeing the results you expect, consider joining our SBM Program for additional coaching, resources and tools to help reach your goals. This ten-month program includes – • Personalized, one-on-one business coaching • Networking and collaboration with other business owners and industry experts • Interactive learning sessions on HR, marketing, social media, financial management and more. Classes begin Sept. 12—Enroll now through Sept. 1. Visit sbm.chemeketa.edu to apply or call Meghan at 503.316.3237 for more information.

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COUNTY NEWS

Spirits: Distilling the Past, Present and Future By Yamhill County Commissioner Mary Starrett

In 1834 Ewing Young arrived with a herd of horses and claimed 50 square miles in the Chehalem Valley. The fur-trapper turned entrepreneur set up a trading post, saw mill and the very first distillery in Oregon. Ewing Young is buried on a farm 3 miles west of Newberg on his original land claim under a famous oak tree named in his honor. Stand by the massive oak today and you’ll see folks sitting and sipping award-winning spirits at the new Ewing Young Distillery, one of three distilleries in Yamhill County. The county’s approach to the conditional use process made it possible for proprietors Doug and Bev Root to bring the old distillery back to life. Yamhill County Planning Director Ken Friday explained “… other counties seem reluctant to process applications for breweries, distilleries and cideries without a change in the State law. While the change in law has been adopted for cideries and recently, breweries, distilleries are still not specifically called out in the planning statutes. We knew a distillery could be processed

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as a commercial activity in conjunction with farm use…. we were able to approve the request after taking it through our normal land use notification procedure.” Not only does the Ewing Young Distillery offer flights of Rye, Bourbon, Vodka, Gin and Malt in a family- friendly venue but resident historian and distillery operator Doug Root can be counted on to regale visitors with tales of Ewing Young’s daring adventures. The small distillery has already created 3 full-time and 3 part-time jobs with plans to add 4 more positions within the next year. But despite the idyllic setting and the quality spirits, challenges remain for this and other Oregon distilleries. Bev Root explains, “The heavy state excise tax on the distilling industry in Oregon continues to be a problem. We got no relief

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Meet. Eat. Sleep in the latest (Legislative) session, only agreement not to add another tax on top of the existing. …. the onerous tax burden resulted in a number of tasting room closures last year. This will continue to stifle industry growth until we can get the same tax treatment as wineries and breweries”. Mike Selberg’s Cannon Beach Distillery, opened in 2012, was soon winning awards and making a name for itself. But Selberg says he will sell the place or simply shut it down next year because he says the state tax structure has made it impossible to keep the business afloat. “It’s just frustrating…it really should have worked.” With a 33 percent taxing burden it’s no wonder 24 tasting rooms have closed. Last year Senate Bill 1564 promised to eliminate fees on the first $500,000 made in tasting rooms. But the bill was opposed by the League of Oregon Cities concerned about losing tax revenues and by Hood River Distillers, Oregon state’s largest liquor manufacturer. While the bounty of Oregon can lead to another thriving agriculture-based industry such as the wine, craft beer and cider industries, without relief from onerous tax policies, small batch distilleries are facing a difficult test.

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COUNTY NEWS

Third Bridge Still Needed in Mid-Willamette Valley By Marion County Commissioner Sam Brentano

I am still trying to absorb my disappointment by the derailing of the Salem River Crossing project and Salem City Council’s decision to recommend a “no build” option for a third bridge in the Salem area. As a county commissioner, I have committed a great deal of time to transportation needs in Marion County and understand the need for more capacity and dependability in our current infrastructure. This decision hampers current mobility and future growth. It is hard for a community to thrive if basic needs, such as transportation, remain unmet. At our annual State of the County presentation in March, hosted by SEDCOR, I promised to seek alternatives for another river crossing that I could start moving forward and perhaps lay some groundwork. I have met with Marion County Public Works officials and discussed three potential crossings. They included Brooklake Road to Wallace Road, Brooklake Road to Wheatland Road, or Clear Lake Road to Zena Road. Brooklake to Wallace would be the preferred route; however, none of the alternatives are ideal and pose problems. Brooklake Road and its current interchange are inadequate for today’s busy truck and

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car traffic. Any project would have to include a new interchange and road improvements. In addition, the location is too far from Salem-Keizer to offer any real relief. The most concerning issue is the six to seven miles of Marion County farmland that would have to be crossed taking valuable land out of production and interrupting farms and farm operations. When I posed this alternative, I received immediate calls from anxious farmers asking me not to pursue this option. Although an additional Willamette River crossing is critically needed, the disruption to our farming community is not reasonable. We have seen this type of negative impact in the Donald area caused by the incomplete NewbergDundee Bypass that diverts traffic into rural Marion County. I cannot suggest we do something similar in another part of the county. Although there is no good alternative to pursue at this time, I promise to keep trying. My hope is that the Salem City Council will reconsider and then try to revive the Salem River Crossing project. This is a regional issue that affects more than the city of Salem. Leaders in impacted Marion and Polk County communities have voiced their commitment to the project and are dedicated to meeting the transportation needs of this region. I implore Salem’s leaders to do the same. Commissioner Sam Brentano can be reached by calling 503-588-5212 or commissioners@co.marion.or.us.

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COUNTY NEWS

Celebrating Willamette Valley Harvests By Polk County Commissioner Craig Pope

‘There are literally thousands of combinations of ag ingredients that make our region so attractive to food and beverage entrepreneurs...’

I am occasionally afforded the opportunity to brag a bit about the incredible bounty that Oregon has to offer the nation and the world, and this article is one of those occasions. Not only can we celebrate the terrific success of our agricultural prowess in Oregon on a pretty regular basis, but we can also celebrate the depth of diversity in ag products that continue to expand. Further, I would suggest that the Willamette Valley has the most innovative and entrepreneurial ag producers on the planet. This article could not begin to outline all of the ag diversity that we have become accustomed to in Marion, Polk and Yamhill counties, but there is no question that the opportunities that have emerged from the wine industry in Oregon, as an example, have inspired so many new ventures to participate in a collaborative way. Thousands of amazing wine tasting experiences in the mid-valley have clearly inspired countless brewers to try their hand at local ales and they have in many cases helped launch craft distillers. Additionally, cider production is a growing and popular venture and several new tasting opportunities are emerging there, too. All have tested and adapted local flavors from crops we have never considered before into their beverages and draw world-renowned attention for many of their labels. The local beverage industry options are additionally responsible in many cases for food creators to try new pairings or dishes that supplement these wines, brews, ciders and spirits. • Cheese creations, for example, are growing out food technologies like never before and are adding to local dairies portfolios. • Olive oils are trending up and are bringing new education and research to the mid-valley that are growing a new orchard sector we have not seen before.

• Hazelnuts are a fast growing and profitable crop that has been incorporated into nearly every new beverage creation in some way and have countless food enhancement avenues that can only be attributed to the special climate and productivity of the Willamette Valley. There are literally thousands of combinations of ag ingredients that make our region so attractive to food and beverage entrepreneurs. Those combinations exist because of the rich diversity of interests, energy and investment in Oregon agriculture.

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Enterprise Fall 2019 15


CITY NEWS

Newberg’s New Community Vision Nears Completion Newberg community members created the town’s 20 year vision and action plan, “aNewBERG: Proud Past. Flourishing Future”, and celebrated its completion on Aug. 15. This community vision plan will serve city leaders, public agencies, stakeholders, businesses, and movers and shakers with a roadmap for decision making and implementation. The community visioning process began January 2019 and organized by the City of Newberg Community Development Department. The plan includes multiple Newberg resident perspectives collected through various public activities in form of committees, work groups, interviews, surveys and events to create a single vision for Newberg. Through this process, students, business owners, parents, volunteers and the city created an action plan and timeline to achieve specific goals in the next 20 years. These goals focus on

Photo courtesy of City of Newberg

years. The closing of the WestRock Mill, the completion of phase one of the NewbergDundee bypass, and recent housing and building developments prompted the City Council to prioritize the need for a community vision and set it as a goal back in 2017.

areas of community leadership, economic development, livability and development, cultural assets and community engagement. “Unlike other city projects, the community and the city take responsibility for enacting the specific goals of the community vision,” Bayoán Ware, Community Visioning Coordinator said.

To view the vision and goals created by the community, go to the project website: www. newbergoregon.gov/aNewBERG

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ECONOMIC DEVELOPMENT NEWS

OEN Names Venture Catalyst for Mid-Willamette Valley White was an adjunct business instructor at Chemeketa Community College and maintains availability as a business adviser through the Chemeketa Small Business Development Center. He runs a number of entrepreneurial brands and is an advocate for youth as the founder of a nonprofit that helps high schoolers get inspired for their first professional steps.  OEN supports a network of Venture Catalysts across Oregon The Oregon Entrepreneurs Network (OEN) has announced that a new Venture Catalyst, Mike White, has been hired to support the Mid-Willamette Valley region encompassing the counties of Marion, Polk and Yamhill.  OEN, a 28-year-old nonprofit that helps entrepreneurs and startups find success, works with a network of partners supporting Venture Catalysts in Southern Oregon, Central Oregon, Southern Willamette Valley, and West Metro Portland. The Venture Catalysts are dedicated to helping entrepreneurs outside the Portland metro area be successful by connecting them to people, programs and capital resources. White, an experienced entrepreneur, adviser, and business educator, will bring his love of all things business to developing a stronger entrepreneurial ecosystem in the Mid-Valley region.  “I measure success by helping others see success. It’s just who I am as a person and as a professional,” said White. “I’m so excited to bring this orientation to my role as a Venture Catalyst.”

to provide on-the-ground business assessment, educational programming, coaching and mentoring. “We can’t wait to get Mike out working with entrepreneurs,” said Jim Coonan, Interim Executive Director of OEN. “His energy, enthusiasm, and experience make him a great addition to the team.”   OEN is one of the first and largest organizations dedicated to improving Oregon’s economy by supporting startups from every industry across the state. A member-based organization, OEN is the heart of Oregon’s entrepreneurial community. OEN helps entrepreneurs start up and scale up by connecting them to the people they need to know, the programs and education they need to grow, and the capital they need to scale. The OEN mission is to drive innovation, facilitate job creation, and put Oregon on the map as a center for entrepreneurial excellence. Learn more at oen.org.

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Enterprise Fall 2019 19


ECONOMIC DEVELOPMENT NEWS

New Marion County Economic Development Coordinator Brings Wide-ranging Experience Jason Schneider brings 20 years of diverse leadership experience to his new role as Marion County’s Economic Development Coordinator. Having worked with stakeholders in every level of government, the private sector, and the non-profit sector in Michigan, Alaska, and Tonga he has a deep passion for working in the intersection of these sectors to enhance strong triple bottom line economies: financial, social and environmental. Jason Schneider His previous work includes being the founding Executive Director of the Marquette Chamber of Commerce where he coordinated economic development efforts, including stakeholder relationships, resource allocation, and business advocacy in Marquette County. As a business development consultant in the Kingdom of Tonga, he facilitated strategic planning that included private business owners, national, and international governments to create a trade organization for the native tourism industry. As a Marquette City Commissioner, he represented regional constituents and guided municipal policy focused on a triple bottom line economy. He has consulted with over 500 entrepreneurs on every stage of the business lifecycle in Michigan, Alaska, the Kingdom of Tonga, and Vietnam. In the government and non-profit sectors, he has worked with local, state, national, and international officials in advocating for cross-entity strategies around economic development, infrastructure, and resource management. The breadth of his experience brings a unique skill set in coordinating diverse stakeholders to identify complex challenges and facilitate collaborative solutions. Outside of his interests in economic and community development, Jason is an avid rock climber and surfer. Occasionally he can also be found behind the lens of a camera or refereeing a roller derby bout.

Jenni Kistler Joins SEDCOR as Operations Director Please join us in welcoming the newest member of the SEDCOR team as Jenni Kistler comes on board as Director of Operations.  Jenni is likely to be a familiar presence to many, having spent the past eight years working with Oregon cities through her role at the League of Oregon Cities.  There she managed many of the member facing programs and projects, including the annual conference, affiliate conferences, training program, and the Small Cities program.  She is excited to focus her passion for serving her community on the SEDCOR members who make the area such a fantastic place to live.  Jenni grew up in the Willamette Valley, residing in Brownsville and attending Central Linn schools and Linn Benton Community College.  She received her Bachelor of Science from New York University in 2010 before returning home to Oregon.  Jenni lives in Independence with her husband Jenni Kistler Jason, son Jackson, and cat Oscar.  She enjoys being involved in her community and spending time with her family. She can be reached at 503-588-6225 or jkistler@sedcor.com.

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Enterprise Fall 2019 21


ECONOMIC DEVELOPMENT NEWS

Independence Hosts Startup Weekend The international entrepreneurship organization Techstars came to the town of Independence as part of its first Small Town Advantage Startup Weekend June 21-23. Startup weekends are typically held in large cities to explore new tech-oriented business ideas and build the local entrepreneurial ecosystem. This event allowed participants to experience first-hand a 54hour startup challenge located in a rural community and focused on rural issues. Nine ideas were pitched by individuals Friday night, with four teams taking the top ideas, developing them, and presenting a proof of concept to judges Sunday evening. Along the way participants networked, learned, and celebrated. And since things were done the “Independence way,” there was local beer, amazing food, and everyone made a lot of friends along the way!

The focus of the weekend was to help local entrepreneurs understand how to rapidly analyze and develop a business idea. Teams heard from two experienced CEOs, Kanth Gopalpur and Celeste Edman, who shared their startup wisdom with participants, inspiriting people to take a creative look at innovation. Teams were mentored throughout the weekend by experienced entrepreneurs from the area to help refine their ideas and hone in on critical issues. Sunday evening, a community celebration culminated in presentation to a judging panel including Bryan Hockett of Bookbyte, Cara Snow from the Technology Association of Oregon, and Erik Andersson, president of SEDCOR. This event was a first of its kind for Independence, a small city of 9,600 people that has established itself as a hub of entrepreneurship and rural tech innovation. The city has implemented a variety of smart city and smart agriculture pilot projects, including a virtual situation room to monitor their July 4th celebration and a partnership with Intel to monitor blueberries from field to fork using blockchain. This was the final event of a year-long program that was part of a Rural Opportunity Initiative funded by Business Oregon, and was a partnership between the City, IndyIdeaHub, Indy Commons, Business Oregon, and Launch Mid-Valley. The Community plans to put on another Startup Weekend in 2020, as well as additional entrepreneurship programs.

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Enterprise Fall 2019 23


NEW MEMBERS

Beutler Exchange Group, LLC facilitates IRC §1031 tax deferred exchanges. The company celebrated it’s 5th anniversary in July.  Toija Beutler, Attorney/Owner has been in the industry more than 25 years.  

crops of red clover and wheat and recently added 250 acres of hazelnuts which will be harvested for the first time this year. They also clean their seed and others at their processing plant in Carlton, Oregon.   The company has three licensed, proprietary, tall fescue grass seed varieties which it sells domestically and internationally.   They enjoy the reputation of producing the high quality seed, being responsive to timely market needs and doing business with integrity.

With a team of seven (including two additional attorneys) they document 100-plus exchanges a month. The real estate transactions range from $75k to $280m and consist of rental houses, apartment properties, commercial buildings, hotels, farm land, etc.  Anything that qualifies as “investment” real estate is eligible for tax deferral utilizing IRC §1031. And while several of the team are attorneys consultation is free.  They consider that time to be “education.”  §1031 exchanges have numerous technical rules.  Beutler Exchange Group, LLC has the expertise to help investors navigate those rules.

Berger International is a sixth generation family business located in the fertile Willamette Valley of Oregon, owned and operated by Becky Meeuwsen Berger. The operation farms more than 3,000 acres located in Washington, Yamhill and Polk counties. The primary crop is turf type tall fescue grass seed.  In addition they grow rotational

Chemica Technologies, Inc. is environment and healthfocused R&D company, headquartered in Portland, Oregon. It utilizes private and government research funding to support the development of adsorbent technologies for environmental and medical applications. Through innovative surface and material chemistry they are creating novel materials that provide advanced, targeted and highly effective removal of diverse trace organic and inorganic chemical contaminants for critical water uses, such as for drinking water, medical applications and food manufacturing. They are currently seeking business and manufacturing partners to help establish commercial manufacturing capability of adsorbent materials in the mid-Willamette Valley region. Continued on page 26

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City’s Building Permits Have Gone Digital Benefits include: Flexible Saves Money Good for the Environment Help is Available Our staff stands ready to assist you in person, over the phone, or by email. Visit www.cityofsalem.net/ Pages/submit-electronic-plans.aspx or call 503-588-6256.

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NEW MEMBERS Shadya Jones, commercial real estate broker with Coldwell Banker Commercial Mountain West Real Estate Inc., is a Salem, Oregon native with more than 25 years in the real estate industry, licensed in the State of Oregon. Shadya strives to bring a creative style and resourceful professionalism to every project. Her real estate strategies present fresh opportunities with affordable solutions for her clients. She is committed to earning trust, working with integrity and providing the best representation to every client. Services include: sales, leasing, landlord representation, tenant representation, development and build to suits, investment properties, 1031 exchanges, site selection, and market analysis.

Montgomery Construction Group Corporation is a general contracting company located in Salem, Oregon. The business concentrates on commercial construction throughout the states of Oregon and Washington. They opened their doors on May 17, 2017 with three employees. Now, two years later they have eight employees and are positioned to grow and compete in the current market. MCG’s mission and goals are to pursue their passion for customer service while building and renovating projects with a customer-first mentality. The strive to sustain excellence, innovation, integrity, leadership, respect, and teamwork as they work together to provide clients with efficient and safe services in a timely fashion.

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Enterprise Fall 2019 27


NEW MEMBERS Welcome New Members Berger International LLC Beutler Exchange Group, LLC Chemica Technologies, Inc Coldwell Banker Commercial, Shadya Jones New York Life, Mariah Hurlburt R & S Industrial Supplies

Thank You to Renewing Members Advanced Reporting BB&A Environmental BDI Staffing Bill Mainwaring Brent DeHart, Life Insurance City of Aurora City of Dallas City of Hubbard City of Independence City of Newberg City of Silverton Coldwell Banker Commercial - Alex Rhoten Columbia Bank Covanta Energy Corporation Creative Company, Inc. Earthlight Technologies Fidelity National Title Company of

Oregon Fischer, Hayes, Joye & Allen, LLC Garmin AT, Inc. Home Builders Association of Marion and Polk Counties I.B.E.W. Local 280 K & E Excavating Kaufman Homes, Inc. Keizer Chamber of Commerce Kilgore-Blackman Building Materials Legacy Silverton Medical Center Les Schwab Tire Center-Silverton Les Schwab Tire Center-Wallace Road NW, Salem May Trucking Company Mid-Valley Commercial Real Estate, Jennifer Martin Mid-Valley Commercial Real Estate, Lindsey Martin Mt. Angel Chamber of Commerce National Business Solutions Natural Plant Products, Inc. NW Natural OGA Golf Course Oregon Fruit Products Oregon Manufacturing Extension Partnership (OMEP) Oregon Port of Willamette, LLC Overhead Door Company of Salem Pacific Building Systems Polk County

Portland General Electric Rich Duncan Construction, Inc. Salem Art Association Salem Center Select Impressions Silver Mountain Packing/AC Foods Silverton Area Chamber of Commerce Stayton Sublimity Chamber of Commerce Sun Quest NW Executive Jet Charter SVN Commercial Advisors, LLC The Grand Hotel in Salem The Summit Group of Oregon, LLC Thomas Kay Flooring & Interiors Trammart, Inc. Travel Salem Truitt Bros., Inc. Valley Credit Union VanNatta Public Relations, Inc. Walling Properties, LLC West Coast Beet Seed Co. Westech Engineering, Inc. Willamette Valley Bank Willamette Valley Multiple Listing Service William E. Adams, MAI Withnell Motor Company Woodburn Area Chamber of Commerce Wooden Shoe Tulip Farm, Inc. Member information May - July, 2019

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28 Enterprise Fall 2019

The Ag & Artisan Pairing


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Enterprise Fall 2019 29


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Profile for MAP Publications

Fall 2019 Enterprise Magazine  

Quarterly publication of the Strategic Economic Development Corporation of Oregon's Willamette Valley.

Fall 2019 Enterprise Magazine  

Quarterly publication of the Strategic Economic Development Corporation of Oregon's Willamette Valley.