Issuu

MAY 2018

Making Lemonade

A Few Words The number and variety of conversations in the past months is incredible. Much of it is worthy of an article in the journal. In fact, so much is reportable that all of it won’t make it to the final publication. There are some subjects, like the challenge of rural airports and commercial air service, that deserve in-depth study and a number of interviews with multiple airport directors and transportation professionals. The information collecting and arranging takes a while longer but will reach the journal next month. Our cover this month shows Lisa Brambilla, hands raised, participating in a “Race for the Cure” event. A cancer survivor, she is an impressive entrepreneur as well. Having lunch with her was inspirational. With “Survivor Eyes” and “BioUrn” she is on her way to being a serial entrepreneur as new ideas pour from her before the last one has had a chance to develop. Everyone should meet her. Eugene is exploding to life in ways it could only have dreamed of a couple of decades ago. Give a good deal of credit to those adrenalin enriched students of the 60’s who seemed to dislike and distrust everything. Much effort is going into a theme to find out what makes Eugene, Eugene to be released in our June edition—it’s a full and interesting ride from where it was to where it expects to be going. Energy, Education and Transportation continue to be driving local discussions wherever I go. Add in Healthcare, Agriculture and Forestry and there’s no shortage of opinions and brilliant thoughts about improving on what we already have. And that I suppose is a trait we should maintain—Always Looking for Better—no matter how good the present state of things may be. Readership growth continues. New ideas in advertising have come to the fore and are being implemented. Subject matter expands and contracts then expands again in every meeting we have. The Southern Oregon Business Journal is dynamic. Every idea is appreciated, discussed and fairly considered regardless of the source. Many readers approach us with thoughts on new articles and marketing efforts. For all of this I am certainly grateful. Have an outstanding May. Greg

Southern Oregon Business Journal

A JOURNAL FOR THE ECONOMICALLY CURIOUS, PROFESSIONALLY INSPIRED AND ACUTELY MOTIVATED

Contents Inside This Issue 2. A Few Words 8. Klamath Idea Receives $55,000 9. Electricians—Earn While You Learn 12. OIT Best Value College

FEATURED ARTICLES

19. Ben & Jerry’s Ice Cream Economics

4. Marijuana in the Workplace

21. EDGE Rollin on the River

6. There Aren’t Any Good Jobs

23. Where Did All the Money Go? 26. SOREDI Launch $500 27. City Zoning Decisions 31. Dogs and Cats—BioUrn 33. 504 Funding Reaches $75 Billion

14. Rail Bridge Failure 29. Solve a Problem, Touch a Heart 34. Employee Retention

36. Winery for Sale

COVER PHOTO

703 Divot Loop Sutherlin, Oregon 97479 www.southernoregonbusiness.com 541-315-6127

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By Permission, Cancer Survivor and Entrepreneur Lisa Brambilla

MARIJUANA IN THE WORKPLACE? WEEDICULOUS!

By Jeff Burgess, Program Coordinator Technical Assistance for Employers Bureau of Labor and Industries

Has your zero-tolerance drug free workplace policy gone up in smoke with recent relaxation of marijuana laws? The answer is no. Washington and

Colorado voters have recently passed ballot measures legalizing the recreational use and possession of marijuana. Nine states and the District of Columbia have also now allowed the use of medical marijuana, despite the fact that it is still illegal, listed as a schedule I controlled substance under the federal Controlled Substances Act. These state laws generally provide immunity from state and local criminal prosecution under certain circumstances. They do not provide employment protection, however. And they do not provide protection against federal criminal prosecution, so users would be wise not to light up or even possess marijuana on federal lands, including USFS, BLM, national parks, courthouses, military installations and wildlife refuges. In Oregon, the issue was raised in the case of Emerald Steel Fabricators v. Bureau of Labor and Industries, 348 OR 159 (2010). In that case, an employee was asked to submit to a drug test. He pulled out his state-issued medical marijuana card and was fired on the spot. The employee filed a disability discrimination complaint with BOLI’s Civil Rights Division and the Commissioner found in his favor, determining that the employer failed to engage in an interactive process to determine if there were alternatives to medical marijuana that would mitigate the employee’s symptoms. The Court of Appeals affirmed, but the Oregon Supreme Court reversed, primarily for two reasons: 1. the medical marijuana law provides immunity from state and local criminal prosecution but does not provide employment protections; and 2. the federal law has supremacy over the state law. Marijuana, even medical marijuana, is still unlawful to possess or consume under federal law. Neither state nor federal disability laws require employers to accommodate the use of illegal drugs at work or at home. Does that clear the air? Still in a bit of a haze about all of this? That is understandable. Although simply stated, the current posture of employment law is filled with nuance. Good employers are fair and

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reasonable. That makes for good employment relationships and will hold you in good stead before courts and agency investigators. If an employee tests positive for marijuana and presents a medical marijuana card, consider having that interactive disability discussion even if the law does not strictly require it. Consider alternatives to medical marijuana, including leaves of absence, substitute medications or even Marinol (synthetic equivalent to delta 9 THC), the psychoactive ingredient in marijuana). Marinol is costly and has the same side effects, but is FDA approved and legal with a prescription in all 50 states. Be aware, too, that abusers can combine marijuana and Marinol and that testing to distinguish between them is expensive. If you have a drug free workplace policy, you should remind your employees (in writing) that it is still a violation of your policies to use marijuana on or off the clock. Be vigilant for signs that employees are under the influence and document your observations. Be careful about voluntarily accommodating employees’ use of medical marijuana. Some studies link marijuana use to increases in workplace injuries and accidents. If the major contributing cause of the injury is marijuana, even medical marijuana, workers’ compensation benefits may be denied unless the employer permitted, encouraged or had actual knowledge of such use. ORS 656.005(7)(b)(C). There is also the potential for third party claims if an employee causes injury to another while under the influence. Finally, employers with federal contracts may lose funding if they do not provide a drug free workplace, and DOT regulations may also restrict your ability to accommodate the use of medical marijuana at work for some employees. Nevertheless, we are intruding on employee privacy by conducting drug testing at work. Drug testing is permitted, but should be done fairly and carefully. Give employees and candidates for employment fair warning that they are subject to testing well in advance so that they can conform their conduct to your reasonable expectations. It may take 30 days or more to clean out one’s system. Have your policies and practices reviewed by an attorney. Stick to the letter of the policy. If testing is random, keep it truly random. If it is for cause, be clear in your documentation of the facts that establish cause.

Otherwise, your well-intentioned policies may go to pot and you could be held liable for invasion of privacy! For more information about this subject and a full

schedule of seminars and other services provided by the Technical Assistance to Employers program, visit our website at: www.oregon.gov/BOLI/TA or call 971-673-0824.

SBA just Says, “No” to Marijuana SUBJECT: Revised Guidence on Credit Elsewhere and Other Provisions SBA has released Policy Notice 5000-17057 announcing revised guidance on SBA’s policy regarding credit elsewhere, partner buyouts for 7(a), marijuana-related businesses, and other provisions in SOP 50 10 5(J).

These changes are effective immediately. Highlight of Changes for the 504 Loan Program: •

Demonstrate the Need for Desired Credit (Credit not Available Elsewhere) (13 CFR § 120.101) Chapter 2, Paragraph II.E.2. (page 275)

SBA is increasing the minimum percentage ownership at which owners are subject to personal liquidity consideration from 10% to 20%. •

Businesses Engaged in any Illegal Activity (13 CFR § 120.110 (h) Chapter 2, Paragraph III.A.8. (page 279)

SBA is issuing additional guidance to specifically address businesses that derive revenue from marijuana-related activities or that support the end-use of marijuana. Marijuana-Related Businesses: 1. Because federal law prohibits the distribution and sale of marijuana, financial transactions involving a marijuana- related business would generally involve funds derived from illegal activity. Therefore, businesses that derive revenue from marijuana-related activities or that support the end-use of marijuana may be ineligible for SBA financial assistance. 2. Whether a business is eligible is determined by the nature of the business’s specific operations. The following businesses are ineligible: a. "Direct Marijuana Business” -- a business that grows, produces, processes, distributes, or sells marijuana or marijuana products, edibles, or derivatives, regardless of the amount of such activity. This applies to personal use and medical use even if the business is legal under local or state law where the applicant business is or will be located. b. “Indirect Marijuana Business” -- a business that derived any of its gross revenue for the previous year (or, if a start-up, projects to derive any of its gross Southern Oregon Business Journal

revenue for the next year) from sales to Direct Marijuana Businesses of products or services that could reasonably be determined to support the use, growth, enhancement or other development of marijuana. Examples include businesses that provide testing services, or sell grow lights or hydroponic equipment, to one or more Direct Marijuana Businesses. In addition, businesses that sell smoking devices, pipes, bongs, inhalants, or other products that may be used in connection with marijuana are ineligible if the products are primarily intended or designed for such use or if the business markets the products for such use. c. Hemp-Related Business” -- a business that grows, produces, processes, distributes or sells products purportedly made from “hemp” is ineligible unless the business can demonstrate that its business activities and products are legal under federal and state law. Examples of legal hemp products include paper, clothing and rope. •

Leasing Part of a Building Acquired with Loan Proceeds (13 CFR § 120.131) Chapter 2,Paragraph IV.J.2.a)vii. (page 307)

Lenders are advised that, during the life of the SBAguaranteed loan, a borrower may not lease space to the ineligible businesses described above because the collateral could be subject to seizure and because payments on the SBA loan would be derived from illegal activity. If a borrower does lease to an ineligible marijuana-related business, SBA District Counsel should be consulted to determine what action should be taken. SBA has issued this Policy Notice to address lender concerns while SBA continues to review these issues. The SOP will be updated after SBA has concluded its review of these issues and determined whether additional clarifications are needed. TI Memo 23-18 | SBA Policy Notice 5000-17057 RELEASED: APRIL 5, 2018

SMALL BIZ SURVIVAL THE SMALL TOWN AND R URAL BUSINESS RESOURCE

BY BECKY MCCRAY

The rural contradiction: “There aren’t any good jobs!” vs. “We can’t find good people!”

How can rural businesses find people to fill jobs that are open NOW?

After we talked about the difficulties in finding good people for low-level jobs in rural areas, I wanted to follow up with a challenge Mike shared with us: “Getting people to live here or come here for the jobs we have open NOW!” Mike’s not the only one with workforce challenges. It was one of the top answers in our Survey of Rural Challenges, and is mentioned often as a rural economic development challenge. You’re not the only one caught between businesses who can’t fill the jobs they have open and young people who say there are no jobs here. I know Mike said “NOW!” but I want to look at three time frames: short term, long term, and the future.

Short Term Short term it’s a matter of working with the people you already have. (We’ll get to attraction, but it takes longer.) You start by building better connections

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between the people you have and the jobs available. Sure, there are already some connections between the employers and the educational system, but there’s a problem: things change. Think about this for a second: how much have the jobs and types of jobs available changed over just the past five years? A lot? If that’s true, then it seems likely that you need to spend some time updating the old connections, making sure teachers, students, organizations, schools, career techs/vo-techs, community colleges, 4 year colleges, big universities based in other towns that cover your area, and every other educational institution actually knows what jobs are here and how students can connect to them. Then it’s time to turn that around. How much do the businesses know about what has changed in all the schools in even the past 5 years? Do the businesses know about other businesses in town that might be a good source of trained workers? Are there 6

connections or collaborations that can help address each others’ needs? Another part of short-term work is to reach out to diverse groups in your community. Who is slipping through the cracks of your current system? People already in your community are a ready resource, compared to people who would have to be convinced to make a move. To get inspired and take action on the short-term work, watch this extremely informative TEDx talk: Small town big change: Mayor Dale Williams at TEDxAuckland. He took on the “no jobs!” “no workers!” conundrum, and won.

Long Term Long term, the answer is to make your town a better place to live. If you want people to move to town to take jobs, you have to make it a town people want to move to. The good news is you have potential partners for this effort all over town: artists, real estate professionals, economic development people, tourism groups, churches, and a lot more. Figure out how to start bringing these people together and building connections! For practical steps toward attracting new people, check out my piece on If it’s a nice place to visit, it’s a nice place to live.

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I’m sure you noticed the Idea Friendly platform under this: Gather your Crowd, Build Connections, Take Small Steps.

The Future And that leads us to the future. What will the jobs / workforce question look like 30 years from now? I think jobs will be far less relevant. We’ll have a lot more people who create their own business or work on their own terms. Automation will take over a lot of what economic developers used to call “good jobs.” Creative expression, craft skills, and personal contact will be far more important. Work may be short term, changeable, and tied to projects rather than lifetime careers. Then again, I may be way off target. No one knows, not yet. So best for us to be open to new ideas and experiment our way into the future.

About Becky McCray Becky started Small Biz Survival in 2006 to share rural business and community building stories and ideas with other small town business people. She and her husband own a retail liquor store in Alva, Oklahoma, and a small cattle ranch nearby. Becky is an international speaker on small business.

Contact: Kat Rutledge Phone: 541-205-5404 Email: Rutledge@klamathcc.edu 803 Main Street, Suite 103, Klamath Falls, OR 97601

Klamath IDEA Receives award of $55,000 From Business Oregon ROI Program KLAMATH FALLS – Klamath IDEA (Inspire Development, Energize Acceleration) is excited to announce that Business Oregon has awarded the IDEA a $55,000 grant. The grant was awarded through Business Oregon’s Rural Opportunity Initiative (ROI) program, which aims to support existing business development resources to build prosperity in rural areas through capacity-building grants and entrepreneurship-based economic development.

“We are so pleased that Business Oregon has recognized the important work we have accomplished as one of Oregon’s first ROI communities. This additional funding will add to the momentum we already have and will help put our region on the map as a budding entrepreneurial place,” said Kat Rutledge, leader of the Klamath IDEA. In 2016, Klamath IDEA was one of four community initiatives awarded funding in the initial round of ROI grants. The award helped Klamath IDEA open the Center for Entrepreneurship in downtown Klamath Falls. With this funding Klamath IDEA plans to hire an entrepreneur concierge whose chief role will be to strategically listen to local entrepreneurs and small business owners to inform a multi-year entrepreneurshipbased economic development strategy. The funds will also be used to leverage additional matching funds through public and private sources and event programming.

“One common denominator in strong economies is a well-balanced, three-legged stool that includes Innovation and entrepreneurship strategy. Klamath IDEA’s objectives are to support an ecosystem where entrepreneurs have connectivity to the technical and professional services they need for success, and to foster an entrepreneurial culture that encourages them to interact with one another,” Rutledge said. “As those components take shape, entrepreneurship can become a self-sustaining and strong component of our local economy.” Grant applicants were prioritized based on their ability to demonstrate broad commitment and meaningful support from existing local economic development and small business support organizations, and their ability to build the capacity of existing local economic development and small business support organizations. Rutledge believes Klamath IDEA’s application showcased both characteristics.

“Klamath IDEA has widespread support among public and private community development stakeholders, and is guided by a very capable eLeadership Team. We have demonstrated that we can create legitimate economic development outcomes,” she said. The organization’s leadership team is optimistic about the prospects of continuing that success.

“The community’s momentum is moving in the right direction and the timing is right to strengthen the entrepreneurial leg of the economic development stool. We’re extremely grateful for this financial support from Business Oregon and hope to leverage that into continued support from our donors and community partners,” Rutledge said. About Klamath IDEA: Founded in 2014, Klamath IDEA is a community initiative supported by entrepreneurs and economic development partners and dedicated to the development of a thriving entrepreneurial ecosystem in South Central Oregon. The initiative is supported financially through public and private donations and grants, is administratively hosted by the Klamath Community College Foundation, and championed by Klamath Community College and its Small Business Development Center. More Information about the Oregon Business ROI Program: http://www.oregon4biz.com/assets/apps/2017ROIpacket.pdf Southern Oregon Business Journal

It’s Electric(ians)! by Anna Johnson https://www.qualityinfo.org/-/it-s-electric-ians

It’s safe to say that nearly every building uses an electrical control system. Think about your daily activities. How many could you do if suddenly there was no power? Probably not many. Electrical systems power the lights, appliances, charge our phones, and even sometimes charge our cars. The important job of installing and maintaining the systems that power our lives falls to electrician. While new buildings are being constructed, electricians install the electrical wiring. This requires the reading and understanding of blue prints and technical diagrams. They use many different types of hand and power tools to run and protect wiring. To maintain equipment and systems, electricians must identify problems and repair broken equipment. The equipment may be difficult to reach, so crouching or standing for long periods of time may be required. Maintenance work may include fixing or replacing parts, light fixtures, control systems, motors, and other various types of electrical equipment. Electricians work indoors and outdoors. They travel to many different worksites, including businesses, homes, factories, and construction sites. They can work alone or in collaboration with others. If employed at a larger company, electricians are more likely to work as part of a crew. Experienced electricians may also be in charge of directing helpers and apprentices.

Earn While You Learn A high school diploma or equivalent is required to become an electrician. Typically, an electrician learns on the job while in an apprenticeship program. The typical program is around four to five years. Southern Oregon Business Journal

Each year of the program allows the apprentice to experience around 2,000 hours of paid on-the-job training, in addition to classroom instruction. While in the classroom, apprentices learn electrical theory, blueprint reading, mathematics, electrical code requirements, and safety practices. In Oregon, apprentices usually start at about 40 percent of the journey electrician rate. Once the apprenticeship program is completed and the worker is properly licensed, electricians are considered to be journey workers.

In 2016, Oregon had 426 electrical trade apprenticeship completers. More detailed information about electrical trade apprenticeships can found on the Oregon Bureau of Labor and Industries’ Apprenticeships and Training Division’s website. Community Colleges around the state also offer electrician apprenticeship programs, including Blue Mountain Community College, Lane Community College, Mt. Hood Community College, Rogue Community College, and Tillamook Bay Community College.

Electricians earn significantly higher wages than the average occupation in Oregon. The median (50th percentile) hourly wage for electricians in Oregon was $32.96 per hour. This was higher than the median hourly wage across all occupations in Oregon, which was $18.59. Median wages varied across the state, but not by much. The PortlandMetro area (Washington and Multnomah counties) had the highest median hourly wage at $36.39. Eastern Oregon (Baker, Grant, Harney, Malheur, Morrow, Umatilla, Union, and Wallowa counties) had the lowest median hourly wage at $26.98. The Portland-Metro area median hourly wage across all occupations was $20.94 and in Eastern Oregon it was $15.83.

Job Outlook Is Fully Charged

Cascades area (Crook, Deschutes, Gilliam, Hood River, Jefferson, Klamath, Lake, Sherman, Wasco, and Wheeler counties) is expected to have the fastest growth rate, with electrician employment projected to increase 23 percent from 2014 to 2024. Eastern Oregon is the only area projected to lose electricians by 2024, with a projected job loss rate of 2.1 percent. Although there is expected to be an overall decrease in electrician jobs in this area, there will still be replacement openings with workers moving into different occupations or retiring.

Electrician Licensing in Oregon Electricians and electrician apprentices must be licensed in Oregon in order to work. There are many different types of apprentice licenses and electrician licenses, but for the sake of brevity, Iâ€™ll only outline the requirements for the apprentice and full license for general journeyman electricians. A full list of electrician licenses can be found on the occupational profile for electricians on QualityInfo.org. The electrician general journeyman apprentice leads to the general journeyman electrician license. Apprenticeship applicants must be at least 17 years of age to apply, and 18 to begin the program. Applicants must provide proof of high school diploma or the equivalent general education development (GED) certificate. They must also have completed at least one year of high school algebra or the equivalent posthigh school algebra course with the

Employment for electricians in 2014 (8,719) was much larger than the statewide average for all occupations. The total job openings by 2024 (10,124) is expected to be much higher than the statewide average number of job openings for all occupations. Electricians are expected to grow 16 percent from 2014 through 2024, slightly faster than the 14 percent growth projected for all occupations. The Portland-Metro area employed the largest number of electricians in 2014, with 4,311. The Mid-Valley area (Marion, Polk, Yamhill, and Linn counties) employed the second highest number of electricians, although it was a distant second at 1,140 workers. The East Southern Oregon Business Journal

passing grade of C, or provide the equivalent math placement test results. Apprentices are expected to pay the cost of tuition and the cost of books. This amount varies per committee. In some cases, these costs are paid by the employer or reimbursed to the apprentice by the apprenticeship committee. Many programs require that apprentices have a basic tool kit and appropriate work clothes and safety equipment such as gloves or goggles. Reliable transportation is important. A small number of apprenticeship programs charge a nonrefundable application fee up to $25. The duration of the apprenticeship is 8,000 hours, approximately four years. Once the apprenticeship is complete, you must be licensed as a general journeyman electrician. In order to receive the license, you must pass an exam that consists of 52 questions, lasts about three hours, and is open book. The license fee is $100 and must be renewed every three years, with 24 hours of continuing education required. As electricians keep the lights on in all sorts of buildings, there will be plenty of opportunities in this critical trade. Some will result from growth in the size of Oregonâ€™s economy and population and many workers will also be needed to replace todayâ€™s electricians as they retire. Opportunities will continue to exist in every area of the state, and in sectors from construction to manufacturing. Anna Johnson Employment Economist anna.l.johnson@oregon.gov 875 Union St NE Salem, OR 97311

Southern Oregon Business Journal

Just-released study lists Oregon Tech as Best Value College in Oregon CONTACT: Ashley Van Essen, Public Relations Representative Phone: 541.885.1162 ashley.vanessen@oit.edu

April 25, 2018, Klamath Falls, OR – Personal finance company SmartAsset has released its 2018 report of the Best Value Colleges in the U.S., with a degree from Oregon Institute of Technology, “Oregon Tech,” noted as the highest value for your dollar of any college or university in the state of Oregon. Oregon Tech ranked No. 1 in Oregon according to SmartAsset’s fourth annual Best Value Colleges study. The study lists the University’s College Education Value Index at 49.97, over 11 points higher than the second Oregon school in the rankings. Oregon Tech graduates also earn higher average starting salaries than their peers from other state colleges and universities, according to the analysis. To determine the best value in higher education, SmartAsset ranked colleges by their value, using data about their tuition, living costs, scholarship and grant offerings, retention rate and graduates’ starting salaries. The different categories were weighted to determine each institution’s College Education Value Index. According to the study, Oregon Tech graduates receive an average starting salary of $59,200, which is $4,100 higher than the next highest university in the Oregon rankings. The average starting salary for all Oregon higher education graduates is $48,766, and according to census bureau data from 2016, the average worker with a bachelor’s degree earns $51,600 per year. The University has also recently been recognized by Forbes “Best Value Colleges 2018” as one of America’s best values for providing the top return on investment among all universities and colleges in the United States. Sources used to formulate this study included research by the National Center for Educational Statistics, 2017 Payscale, The Institute for College Access & Success, and College InSight. To view SmartAsset’s rankings for Oregon colleges and universities, visit https://smartasset.com/studentloans/student-loan-calculator#oregon.

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100 Year old rail bridge halts Port of Coos Bay commercial traffic when it fails to fully rotate. News and Information from Oregon International Port of Coos Bay

Coos Bay, Or. On Friday, April 13th, the Coos Bay Rail Link (CBR) reported that the Coos Bay Swing Span Bridge failed to complete its rotation to return the bridge to the open to river navigation position. Staff from the Oregon International Port of Coos Bay (Port) responded on site to complete an inspection and assessment of the bridge. The Port’s engineering cautioned moving the bridge. As a result, the Port closed the channel for river navigation until the bridge could be moved to clear the channel. On Sunday, April 15th, Port staff, CBR, outside engineers, and a local marine towing company moved the bridge to clear the channel for navigation. “Safely clearing the channel to maritime traffic in a timely manner was of the utmost importance to the Port, as well as for the marine terminals south of the bridge,” said Fred Jacquot, Director of Port Development. The Port reported to the US Coast Guard and other stakeholders that the channel was clear with a 15-foot restriction on either side of the center support pier structure. The Port is working with contracted services to develop and implement a plan to safely rotate the bridge the remaining distance to its fully open position, completely clearing the channel through the rail bridge for marine navigation. “The Port is working to develop a repair plan to return the bridge to freight rail service as quickly as possible,” stated John Burns, CEO of the Oregon International Port of Coos Bay. “Rail service is a critical link for the shippers along the line, and our region. As such, addressing the repair needs of the bridge in a timely manner is a top priority for the Port.”

For additional media information, please contact: Margaret Barber, External Affairs Manager, Port of Coos Bay Phone 541.266.3713 / E-mail: mbarber@portofcoosbay.com / www.portofcoosbay.com

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Coos Bay rail line Bridge Rehabilitation The Coos Bay Rail Line is a shortline class III railroad owned by the Oregon International Port of Coos Bay and operated through a management agreement with Coos Bay Rail Link, a division of ARG Trans, Inc. The 134-mile-long line provides connections to the North American rail network for manufacturing operations in Coos, Douglas, and Lane Counties, and for marine terminals in the Coos Bay harbor. The line began operations in 1916, passing through several owners until it was shut down in 2007 due to safety issues related to deferred maintenance. The line was acquired in a feeder line proceeding before the Surface Transportation board in 2009, and was returned to service in October of 2011. Since restoration of service, the line has seen an increase in revenue car loads from 2,480 in 2012 to a peak of 7,509 cars in 2014. Revenue loads for 2015 reached 7,341 cars, and the traffic on the line is expected to maintain at around 7,500 cars annually until additional industries are brought into service along the rail corridor.

Swing Span bridge over Siuslaw River The line traverses 121 bridges between the interchange in Eugene and end of line in Coquille. The bridge structures vary in type and configuration, but include (3) steel swing span bridges, a variety of

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steel truss, though plate girder, and deck plate girders spans, concrete box spans, and a multitude of timber trestles. Many of the structures were first built when the line was constructed in 1914 through 1916, and many of the steel structures are now 100 years old. While most of the bridges on the line meet Federal Rail Administration mandated rating criteria for current operation loads and train speeds, several structures limit train speeds. These structures must be constantly inspected and repaired to remain in service, and require significant improvements and upgrades to meet the optimal targeted train speed of 25 miles per hour. The proposed project is the construction of improvements or replacements for selected key bridge structures to upgrade capacity on the line; to meet FRA mandated load rating requirements; to increase overall safety and reliability on the line; and to extend the useful life of the selected structures for 20 years or more of continuous operations. The project builds on repairs made in 2010 to return the line to service, and other upgrades made to meet current FRA standards. The planned work includes improvements on all three of the Swing Span bridges, replacement of the Vaughn Viaduct Bridge near Noti, Oregon, replacement of the Coal Bank Slough bridge in Coos Bay, Oregon, and capacity upgrades to steel structures between Coos Bay and Eugene to meet planned train load capacities and speed targets necessary to maintain continued traffic growth on the line. Load ratings for the three swing span bridges on the line were completed in 2014, and ratings for the remaining steel structures were completed in 2015.The rating reports identified improvements to the swing span structures necessary to meet FRA criteria for planned operations, including a design revision to the existing floor systems on the Umpqua and Siuslaw swing span structures necessary to meet current American Railway Engineering and Maintenance of Way Association (AREMA) standards. The reports also

indicated the current configuration of the Vaughn Viaduct and Coal Bank Slough bridges would not meet FRA criteria, prompting efforts to replace those structures. The Vaughn Viaduct replacement project has passed 30% design and is currently being permitted. Additional improvements to other structures have been identified to improve capacity on sections of the line to meet projected needs for expected traffic levels over the next 5 years. Construction on these projects is planned to begin late 2016 or early 2017, depending on permitting and funding criteria. The overall project is currently estimated to cost $24.4 million dollars. The Oregon International Port of Coos Bay intends to fund the project through a combination of grants, loans, and revenue generated by rail line operations. Currently, the Port has committed $7 million from the Oregon Lottery Bond backed grant authorized in 2013, $3 million in funds from the Oregon Lottery Bond backed grant authorized in 2015, and $400,000 in Rail Revenues to the Project. The Port intends to seek a Federally funded grants for the remaining $14 million necessary to complete the project.

Swing span bridge over the Umpqua River

Reprinted by permission

Southern Oregon Business Journal

A Glimpse into Oregon Imports and Exports Global trade affects us all from our diet to the clothes we wear and the products we buy. Oregon is also not immune to the effects of global trade, exporting about $22 billion worth of goods in 2016 and importing about $17.6 billion worth of good same year. Top export partners include China, Malaysia, Canada, Vietnam and Japan while top import partners include Ireland, Canada, China, Japan and South Korea. The traded sectors of our economy support about 78,000 jobs related to manufacturing and supporting about 6,000 businesses throughout the state.[1] The Port of Coos Bay (Port) facilitates the export of natural resources-based products such as forest products and seafood in the Southwest Oregon region and beyond. The Port has direct involvement in both major industries on the South Coast, facilitating the movement of cargo through the federal navigation channel and ownership of the Charleston Marina. Below is a brief overview of these markets as well as other popular agricultural exports such as grain and potatoes. Forestry Products Oregon is the largest lumber producer in the U.S. With 30.5 million acres of forestlands, about 50% of the total landmass of the state is covered in forest. Oregon exports significantly more forest products and raw wood products than it imports. Oregon is home to many leading wood and paper product manufacturers, including Weyerhaeuser, Georgia-Pacific, Roseburg Forest Products and The Collins Companies. Close to 75% of all wood products made in Oregon are sold outside the state. The state dominates U.S. production of softwood lumber and plywood. It is also a leader in engineered wood and home to the first mill in the U.S. to manufacture structurally certified crosslaminated timber (CLT). Forest products play an essential role in the rural economies of Oregon as most of the jobs, wood processing plants, and industry related activities take place in rural Oregon. In Coos County, forest sector jobs make up 17

about 9% of the countyâ€™s employment at 2,200 jobs. [2] Oregon exported about 517,000 metric tons of forest products with a value of $88 million in 2017 to destinations like China, Japan and Taiwan. Oregon is also imports a lot of forest products from countries like Canada and Honduras to be processed in state. In 2017, Oregon imported about 158,000 metric tons of forest products at a value of $17.5 million.[3] Seafood Industry

The Oregon commercial fishing industry is an important contributor to the State's economy, especially for the coastal communities along the Oregon coast. As a natural resource-based industry, it is also quite volatile. In 2016, Oregon commercial onshore harvests were valued at $144.1 million which is below the previous 5-year average of $154.4 million. In 2016, about 1,000 distinct vessels made a total of 27,365 landings at Oregon ports. These landings summed to 225.4 million pounds of fish (209.9M lbs. in 2015; 5year average 291M). Newport and Astoria were the top ports in terms of both volume and value, each with about 1/3 of Oregonâ€™s total onshore harvest value. The highest value fisheries were Dungeness crab ($51.3M), pink shrimp ($25.1M), ground fish Southern Oregon Business Journal

($16.8M; not including sablefish and whiting), and sablefish ($15.1M). The Pacific sardine directed fishery closure continued. Overall, the Oregon commercial fishing industry generated an estimated $544M in household income in 2016, about half of which originated from distant fisheries (e.g., Alaska fisheries, at-sea fisheries).[4] Oregon exported about 19,500 metric tons of seafood at a value of about $29 million to countries such as Japan, South Africa, Benin and Nigeria in 2017. Seafood imports in 2017 totaled about 12,000 metric tons with a value of $64.8 million mostly from India, China and Chile.[5] Transportation of fish and shellfish are affected by many factors including nature of the product, weak infrastructure in Oregon, inspection inefficiency, lack of critical mass to be cost effective, and cultural and language barriers. Fresh and chilled fish are usually shipped by air due to a shorter shelf life, while frozen marine products are more likely to be shipped by vessel.[6]

Reprinted by permission

The Ben & Jerry’s crash course in transportation economics By Joe Cortright 4.10.2018 They’ll be lined up around the block because the price is too low–just like every day on urban roads. Today’s that day, folks. Ben and Jerry are giving away free ice cream to everyone who comes by their stores. Whether you’re hankering for Cherry Garcia or Chunky monkey, you can now get it for absolutely zero price.

Well, there is that one thing: You’re going to have to wait in line, and probably for a long time. As you’re standing there, it would be a good time for you to ponder the valuable lesson that Ben and Jerry are providing in the fundamentals of transportation economics.

Gridlock! Southern Oregon Business Journal

You’ll note that unlike the average day at a Ben and Jerry’s, when you might have to wait in line a for a minute or two to get your favorite flavor, now you’re going to end up waiting twenty minutes, or a half hour, or possibly longer. In terms of customers served and gallons scooped, this is going to be their biggest day of the year–last time they gave out

a million scoops of ice cream worldwide. You’ll probably also notice that most of the people standing in line are people who aren’t working nine-to-five. Not many investment bankers or plumbers, but lots of students, moms with small kids, and people who have at least part of the day off from work. Make no mistake, although you’re not laying out any cash for your ice cream, you are paying for it: with your time. Let’s say that you’d pay $2.50 for that scoop of Phish Food (they’re a bit smaller than regulation on free cone day). If you have to wait half an hour, and you value your time at say, $15.00 per hour, that $2.50 scoop really cost you something like $7.50. It’s a safe bet that most of the people waiting in line value their time at something less than $5.00 an hour if they’re willing to wait that long for a “free” cone. Also, if you really want ice cream, and are pressed for time, there’s no way that you’re going to jump to the head of the line no matter how much you’d be willing to pay. Free. It only works because its one day a year. Substitute “freeway” for “free cone” and you’ve got a pretty good description of how transportation economics works. When it comes to our road system, every rush hour is like free cone day at Ben and Jerry’s. The customers (drivers) are paying zero for their use of the limited capacity of the road system, and we’re rationing this valuable product based on people’s willingness to tolerate delays (with the result that lot’s of people who don’t attach a particularly high value to their time are slowing down things for everyone). If Ben and Jerry’s were run by traffic engineers, instead of smart business people (albeit smart business people with a strong social minded streak), they’d look at these long lines and tell Ben & Jerry that they really need to expand their stores. After all, the long lines of people waiting to get ice cream represent “congestion” and “delay,” that can

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only be solved by building more and bigger ice cream stores. And thanks to what you might call the “fundamental law of ice cream congestion” building more stores might shorten lines a little, but then it would likely prompt other people to stand in line to get free ice cream, or to go through the line twice. But, of course, with zero revenue Ben & Jerry would find it hard to build more stores. No doubt Ben and Jerry generate enough good will, and probably attract a few new customers with their willingness to give up one day of revenue per year. And they’ll make more than enough money on the other 364 days of the year to cover their losses. But what works for ice cream one day a year is an epic failure when it comes to roads. As long as the price is zero, there will be more demand than you can handle, and you’ll be struggling to pay for the capacity that (you think) is needed.

Joe Cortright is President and principal economist of Impresa, a consulting firm specializing in regional economic analysis, innovation and industry clusters. Joe’s work casts a light on the role of knowledge-based industries in shaping regional economies, Joe served for 12 years as the Executive Officer of the Oregon Legislature’s Trade and Economic Development Committee.

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WHERE DID ALL THE MONEY GO? BY CHARLES MAROHN https://www.strongtowns.org

Two weeks ago I spoke at the Harvard Law School Forum and, after my presentation, had a private meeting with some students and alumni who had a particular interest in urbanism. One student in particular — and I wish I remembered his name because he was a sharp guy — asked me a question I’ve been mulling over ever since: Where did all the money go? I’ll elaborate on what I took him to mean: Americans have spent trillions of dollars on homes and commercial properties, and governments have spent trillions of dollars on infrastructure. You are telling us that wealth is not there. If it’s not, where did the money go?

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My answer, and I apologized for going full Matrix on them, was this: What if the money was never there in the first place? I want to unpack this a little bit because I think it’s important for understanding why the tragedy of the Suburban Experiment is not a problem we can solve, but a predicament with outcomes we can only manage. A few years ago, I met with some people who do ratings on municipal bonds. I presented a modified version of the Curbside Chat to them and then we had a discussion. It didn’t surprise me that they hadn’t heard the stuff I’d presented before, but it did alarm me when, after acknowledging it —and agreeing that I made a compelling case that nearly 23

all our municipalities are structurally insolvent — they all kind of simultaneously shrugged their shoulders. I’ll summarize their collective analysis in one line: Cities historically have a very low default rate and so we’re confident that cities will continue to have a very low default rate. Even though that seems crazy to me, I must acknowledge that there is a certain logic to it. As Nassim Taleb suggests in the Black Swan, the turkey is fed every day through the spring, summer and fall; there’s no reason to anticipate (at least from the turkey’s standpoint) that when they wake up on the fourth Thursday of November things should be any different. That might be true, even if some guy from a non-profit organization showed you the ax, chopping stone and guest list for Thanksgiving. Having a full tummy is a powerful motivating factor. Back in 2013, I wrote a six-part series called Dumb Money in which I tried to explain how and why Wall Street banks take one dollar and turn it into a forty, fifty or even sixty dollar investment. Starting with a small bit of equity and then leveraging it many times over, banks are able to experience a massive return on a very small bit of real wealth. The fragile part of this, of course, happens when things don’t go well. A portfolio leveraged 50:1 is wiped out — all the equity is destroyed and the bank becomes insolvent — if the portfolio loses just 2% of its value. I want you to hold onto that thought for a bit: that we can start with a small bit of wealth, leverage it up to grow the size of the portfolio, but when things go bad just a little, very quickly have our liabilities exceed our assets, wiping out our initial wealth and making us insolvent.

Flash back to the pieces I wrote last year on our Lafayette, Louisiana analysis. In The Real Reason Your City has No Money, I presented the tragic numbers in Lafayette, how it took two dollars of public investment to induce one dollar of private wealth and how there was no way for the city to raise enough money to cover their long term costs. In the follow up piece, Poor Neighborhoods Make the Best Investments, I pointed out how the old and now poor neighborhoods were the only ones that were, from an accounting standpoint, profitable in the entire city.

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The old, poor neighborhoods were the only neighborhoods generating more revenue to the city than they cost to service and maintain. This is true in 2016, but let’s turn back the clock to the 1950’s, before Lafayette ran highways out into the swamp and started to build out there as a way to experience growth. I don’t have a precise diagram, but we know the city was much, much smaller in size back then. We know from an analysis of the extent of their water system that the city is 10x to 20x larger today than it was at midcentury. I think it’s safe to say that Lafayette — and most American cities of the post-War era — were financially stable. And to use an accounting term again, they were profitable. The revenues produced by what they built—the community's wealth—exceeded the expenses needed to maintain that built environment. If Lafayette is consistent with other cities I’ve examined, the private to public investment ratio would have been somewhere between 20:1 and 40:1. In other words, for every dollar of public investment in streets, pipe or buildings, there would be between $20 and $40 of private wealth to sustain it. Think of this as the initial equity, the nest egg that was painstakingly created over decades and decades of incremental investments. What happened is that we leveraged this equity to grow our portfolio, to expand the city in the name of growth. We took on a lot of public debt and, even more importantly, we took on a lot of long term liabilities (promises to service, maintain and replace the stuff we built). Each increment of new growth, in an accelerating manner, added more liabilities than it created in new wealth. Each new investment made us poorer.

…our cities have even more liabilities than they have wealth… The money is not there. It was never there.

Now we look at our cities and see all of this investment. There are all the homes and commercial properties. There is all the infrastructure, the roads and streets and pipes and pumps and valves and meters. There are all these public buildings and parks and transit systems. There’s an unfathomable amount of investment there.

their built environment completely falls apart.

But just like Lehman Brothers, which had hundreds of billions of dollars in assets, our cities have even more liabilities than they have wealth. It’s all propped up by the Ponzi scheme of how it's all financed, along with a little bit of real wealth — equity that was wiped out on the real balance sheet long ago. The money is not there. It was never there.

Charles Marohn

Since cities historically have a very low default rate, we’ll just remain confident that cities will continue to have a very low default rate. Until they don’t. Or until

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There is no way to sustain a city over time without building wealth within it. That is why a Strong Towns approach is critical for every city and every neighborhood — rich or poor — that wants to be around to experience a chance at prosperity in the future.

Charles Marohnisa is a Professional Engineer (PE) licensed in the State of Minnesota and a member of the American Institute of Certified Planners (AICP). He is the Founder and President of Strong Towns. Marohn has a bachelor's degree in Civil Engineering from the University of Minnesota's Institute of Technology and a Master of Urban and Regional Planning degree from the University of Minnesota's Humphrey Institute.

SOREDI’s LAUNCH | Talk Pitch Contest Offers Business $500 Cash Medford OR – Thursday, May 10 (5;30—7:30), SOREDI’s LAUNCH Southern Oregon will host a Pitch Contest at the Oak Knoll Golf Course in Ashland. The program will feature a series of 5- Minute Startup Pitches, given by area entrepreneurs. The audience favorite will walk away with a $500 Cash Prize, sponsored by KDP Certified Public Accountants. Tickets are $15 for SOREDI Members/$20 for Nonmembers. Ticket price includes dinner and a drink ticket. Food will be catered by the Curbside King food truck, frequently located in downtown Medford. Additional drinks are available for purchase at the Oak Knoll Clubhouse. Visit www.soredi.org/events to register. Last year’s prizewinner, Breanna Grieve, used her $500 prize money to set up her online store. She says, “I was so busy developing my products and looking for customers, that I didn’t realize how important it was to have a polished pitch to represent my company!” Grieve continues, “I was so nervous, but I received some coaching at SOREDI. It was a real thrill to be chosen by the audience! It’s been amazing to see how far $500 could go in providing practical things, like business cards, and a banner, for my business. I think every new company should go through this process and everyone should come out to watch them and encourage them!” In addition to financial assistance, Grieve was also able to meet people at the event, many of whom provided services or advice that assisted her business, as well.

Breanna Grieve, Unicorn Glitter Sharts

The presenters competing for the prize this year, will offer the audience a surprising variety. The Coffee Bean Bag, Vera Scents, Isoped, Life Change Manufacturing, Livestock of the World, and American Aquarium Products, represent smart, efficient, creative businesses across Southern Oregon. If you are thinking of starting or growing a company in Jackson or Josephine County, if you offer services to local businesses or if you’ve ever considered participating in building local companies as an investor, you won’t want to miss this showcase. In addition to the presenters, there will be ample networking time where startup companies will be able to mix and mingle with resource providers and potential investors.

LAUNCH Southern Oregon is an initiative of SOREDI, created to support startup companies in Jackson and Josephine Counties. The City of Ashland, Southern Oregon University (SOU), the Small Business Development Center (SBDC), First Interstate Bank and Neuman Hotel Group, provide funding and direction for the LAUNCH|Talks, an ongoing series of inspirational and informative talks offered for entrepreneurs monthly. For more information on upcoming LAUNCH|Talks, visit www.soredi.org/events.

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Choose your favorite city. Greg Henderson, Publisher

Someone probably once said it would be a very good idea to build a large mall on a parcel of land outside the original city business district. It would improve traffic situations by reducing congestion and make shopping a more comfortable exercise in too hot or too cold weather. People would love it for its ability to bring neighbors together in larger groups where a stage could offer entertainers a place to show their talents and local school children could put their school projects on tables for all the community to see. It would be wonderful. Be careful. Malls across America are struggling to attract tenants willing to pay similar prices for space and taxes as the businesses in the downtown areas of town. To recruit these new businesses real estate agents and local politicians tagged the idea of waiving taxes and other expenses as an inducement for new tenants to come to town (in the mall). Jobs would have a multiplier effect on their value. Then something happened. Business and industry is very competitive, especially in the retail trades. Products change as consumer demands change. And consumers can change their shopping habits in a very short time â€“ beware the business with a commitment to long-term debt. Cash flow may end before the loans are repaid. Compare the Value per Acre and Net Taxes per acre in these two examples. Is this the projection that might doom the good idea your committee shares today?

https://www.strongtowns.org/journal/2018/4/23/bon-ton-gone Long term forecasting is difficult and time consuming, but future generations will be grateful for your efforts. Proceed intelligently.

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“Solve a Problem and Touch the Heart” or, How to be an Entrepreneur By Lisa Brambilla “I’d rather hustle 24/7 than slave 9-5” I am most proud of the fact that I have created 2 products that solve a problem and touch the heart. The Gift: After watching my beloved 13 year career in the pet industry disappear in my rear view mirror, I thought the rug had been pulled from under me, but I realized that the loss of my job was actually the most amazing gift "they" could have given to me. I was able to combine my love of animals with my creativity to create a green burial solution that is good for the planet and good for the people who love it. Then, as a cancer survivor, to partner my passion for helping people through their struggle with the side effects caused by illness with a solution that gives them renewed self confidence and empowerment. After all, there is nothing that makes a woman feel more powerful than to look and feel beautiful.

later this month to meet the need for a high quality brow kit for those on a tight budget and we are in development of a brow style kit for kids, to be released in 2019. Our goal with this product is to have a portion of sales support charities that support kids with cancer. SurvivorEyes is a very philanthropic company, directing 5% of our annual profits to charities that support those we serve.

To see the transformation (smile) on someone's face after applying their SurvivorEyes brows is so rewarding. It gives me those "good feels" that (in Hawaii) we call "chicken skin". How delightful to have a business that provides a daily dose of "Chicken Skin" I am truly blessed!

My name is Lisa Brambilla. I am a wife, mother, pet lover, breast cancer survivor, entrepreneur and inventor of products that solve a problem and touches the heart. I have created a beauty brand whose primary mission is to help those who struggle with hair loss.

New Products: After creating SurvivorEyes, my friend in the beauty industry alerted me to the fact that men are visiting the beauty counters across the country looking for cosmetic solutions as well. Not an isolated "fad" but a "trend" that the industry is reacting to. Learning this, I jumped into action and found a cosmetic that would appeal to men in that it is "bullet proof" Waterproof, sweat proof with 24 hour wear! I incorporated that cosmetic into a BrowStyle kit for men which I named Brows for Bros! Realizing that active women would also appreciate the same long wearing cosmetic, I created Forever Brows for women, and launched all 3 products at the Cosmoprof Beauty Show in Las Vegas July 2017 where we were the talk of the show. It was there that we were picked up by Amazon and Walmart for online sales of our brow kits. We are launching SurvivorEyes Express Brows

Having survived breast cancer & experienced several of the side effects of treatment, I consider myself somewhat of an "expert" on several related issues including the challenges faced when our image is compromised by the treatments designed to save our lives. The loss of hair (most especially ones' brows) can be overwhelming to our self-confidence. This became evident and inspired me to create SurvivorEyes when I visited my friend, during her battle with breast cancer. Several weeks into her treatment, she lost all of her hair. Never one to wear much make-up, she found herself challenged after struggling for 2 hours in the mirror to apply her brows. Frustrated, feeling defeated, she shared: "Without brows I look like a freak, after trying to apply them, I looked even worse" She decided not to leave her house, because she didn't want to "look sick" or have people pity her. As a survivor myself, I knew all

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too well how she felt, and remembered how important it was to me, to look "normal" when I was in treatment. Women are at our most powerful when we feel beautiful... and we need all the strength we can muster when fighting for our lives! I set out to find her a brow product that was easy to use, and delivered great results... but there wasn't one... This experience was what inspired me to create the solution, which I named "SurvivorEyes".

•

Brows for Bros ® is a BrowStyle kit specifically for men, that includes 10 masculine shaped brow templates along with a sweat proof, waterproof pomade cosmetic in 3 color pallets, along with a dual sided applicator, all in a mirrored, travel size compact.

•

Forever Brows is a BrowStyle kit for active women who are looking for great looking brows that are waterproof and sweat proof. Like Brows for Bros, the Forever Brows kit contains 10 feminine brow templates, the pomade cosmetic in 3 color pallets and a dual sided applicator, all in a mirrored compact.

“Being

a survivor has made me stronger and shown me how to combine my personal experience with my creativity to help others! Breast cancer was my basket of lemons, and SurvivorEyes is my lemonade.” Each BrowStyle kit contains 10 unique brow templates (or brow stencils) in shapes from conservative to dramatic to compliment any face. In addition, a dual sided cosmetic applicator and through a strategic collaboration, we include high quality Sorme` cosmetics, which are available in 3 shade pallets ideal for all skin tones. Besides the "all day wear" feature of the Sorme` cosmetic, the beautiful thing about SurvivorEyes is that every purchase supports charities that help those who struggle with hair loss through a 5% annual "giveback" making social responsibility the cornerstone of our brand.

Here's the Why for SurvivorEyes:

SurvivorEyes Inc. is a beauty brand offering eyebrow styling kits to help those who struggle with hair loss have natural looking brows that are easy to apply and last all day. Created by a cancer survivor, the driving force behind SurvivorEyes is to deliver self-confidence and empowerment by helping women to look and feel beautiful.

Every woman appreciates a high-quality beauty product, which SurvivorEyes delivers, plus so much more! The SurvivorEyes BrowStyle kit is available on our company website, and in select salons and spas throughout the USA. Since April 2017, Costco members can buy SurvivorEyes BrowStyle Kits featuring Sorme` cosmetics online at Costco.com. Brows for Bros and Forever Brows debuted on Amazon.com in late 2017.

The SurvivorEyes BrowStyle Kit was officially launched at the 2017 Cosmoprof North America Beauty Show, in Las Vegas where we also introduced the 2 new additions to our product line.

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E. Lisa Brambilla, Founder SurvivorEyes Inc.

Southern Oregon Business Journal

United States Small Business Administration 504 Loan Program Reaches $75 Billion The 504 loan program from the U.S. Small Business Administration is an effective and successful program to help small businesses. SBA 504 loans are made by local certified development companies throughout the country, working with local lenders. SBA 504 loans help owners of expanding or startup small businesses to buy real estate, buildings and equipment.

Since 1983, Cascade Capital Funding has been helping Oregon companies expand their businesses, purchase real estate, machinery and equipment and create jobs in their communities through a partnership with local banks and the SBAâ€™s 504 Loan Program. The SBA 504 Loan Program offers small business owners the opportunity to obtain long-term, fixed rate financing reserving much needed business capital. Your bank will provide 50% of the Project financing and Cascade Capital Funding will make a second mortgage for up to 40% of the remaining Project total.

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Employee Retention: 5 Questions to Ask During a Stay Interview By Refresh Leadership on April 30, 2018 in Human Resources

Studies show the actual cost to replace an employee is significant. Depending on a variety of factors—including skill level, education, and experience—the total cost of turnover can be as high as 150% of an employee’s annual salary. So, if you assume the average salary in your company is $50,000, then every time an employee leaves, the cost to replace them could be as high as $75,000. Now, multiply that number by your average yearly turnover, and you can see how quickly it adds up.

If you’re ready to start conducting stay interviews with your employees, here are a few great questions to help kick things off: •

What do you like most about working here? Identifying the parts of their job that bring your employee joy or what type of work interests them most not only helps you gauge job satisfaction but also how you can help them develop their career to capitalize on those interests.

Today’s job market is more competitive than ever before with talented and experienced workers at a premium, so having an ongoing employee retention program is vital to maintaining a productive workforce. One way many companies have started measuring the engagement levels of their workers is through conducting periodic “stay interviews.”

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If you could change anything about your job, what would it be? Just as important as identifying the parts of the job your employees enjoy is taking note of the things they could do without. Obviously, every position comes with its own form of “grunt work” that’s just part of the job, but understanding where an employee’s priorities lie, again, can help you build a plan for how they develop within the company.

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As your manager, what can I do to make our working relationship more productive? No two workers are alike and a management style that works for one may not be as effective for another. One of the top reasons people leave a job is a poor relationship with their boss, so it’s important to understand how your employees want and/or need to be managed.

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What would another company offer that would entice you to leave? Even if an employee enjoys the work they do, in today’s competitive labor market there is no

What is a stay interview? According to the Society for Human Resource Management (SHRM), “stay interviews are conducted to help managers understand why employees stay and what might cause them to leave. In an effective stay interview, managers ask standard, structured questions in a casual and conversational manner. Most stay interviews take less than half an hour.” Basically, a stay interview is a great way to “check in” with your employees to ensure both they and the company are receiving what they need and want from the work relationship and to address issues before they get out of control. Southern Oregon Business Journal

shortage of temptation from other companies that may cause them to jump ship. From more generous benefit structures to perks like flexible scheduling or opportunities to work from home, the competition is doing everything it can to lure the best workers their market has to offer. •

How can I better support your career goals? In the end, showing genuine interest in how your employees’ careers develop is one of the most important ways to build a workforce of talented people who, in turn, genuinely care about the success of the company.

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What would another company offer that would entice you to leave? Even if an employee enjoys the work they do, in today’s competitive labor market there is no shortage of temptation from other companies that may cause them to jump ship. From more generous benefit structures to perks like flexible scheduling or opportunities to work from home, the competition is doing everything it can to lure the best workers their market has to offer.

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www.refreshleadership.com/index.php/2018/04/employee-retention-5questions-stay-interview/

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