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HomeMy WebLinkAbout2009 12 15 RS Commercial Industrial Buildable LandsMEMORANDUM CITY OF SPRINGFIELD DATE OF HEARING: December 15, 2009 TO: Springfield Planning Commission PLANNING COMMISSION TRANSMITTAL FROM: Linda Pauly MEMORANDUM SUBJECT: Springfield Commercial and Industrial Buildable Lands Study LRP2007-00031 ACTION REQUESTED: The Planning Commission shall conduct a public hearing to accept testimony on the draft work products of the Commercial Industrial Buildable Lands Study (CIBL). The Planning Commission is asked to forward a recommendation to the City Council to adopt the CIBL inventory, analysis and related plan provisions to provide Springfield with a baseline inventory and analysis of employment land needs for the plan period 2010-2030. ISSUE: The City of Springfield proposes to adopt the draft Springfield Commercial and Industrial Buildable Lands Inventory, Economic Opportunities Analysis and the Economic Development Objectives and Implementation Strategies as part of Springfield 2030 Refinement Plan pursuant to LCDC's Economic Development goal and rule in order to carry out mandate of 2007 Or Laws Chapter 650 requiring Springfield to separately establish its own urban growth boundary pursuant to statewide land use goals. Applicable criteria include 2007 Or Laws Chapter 650, State Economic Development Planning Goals and Rules OAR 660-0015, OAR 660-009-0020, OAR 660-009-0025 as amended by LCDC in 2007, and applicable comprehensive plan policies. DISCUSSION: The work products of the CIBL study were prepared by the City’s consultant ECONorthwest and staff in collaboration with the CIBL Stakeholder Advisory Committee and the CIBL Technical Advisory Committee. Five two-hour joint work sessions with the Planning Commission and City Council were held to review and refine the work in progress. The study was informed by the results of an online Community Development Survey, two community visioning workshops, and interviews with stakeholders and staff representing affected agencies such as Oregon Department of Transportation and Department of Land Conservation and Development. The survey results and draft work products of the study were available for viewing at public open houses. Drafts of all interim work products and documentation of the CIBL Stakeholder Committee process have been posted on the Planning Division webpage throughout this project. The CIBL project has three components: (1) a buildable lands inventory; (2) an economic opportunities analysis; and (3) an economic development strategy. All of these elements are required to comply with statewide planning Goal 9 and the Goal 9 rule (OAR 660-009). The Economic Development Objectives and Implementation Strategies updates and builds from previous economic development planning work by the City and will be used to guide development of land use policies to implement the City’s economic development vision. Previous land studies were conducted jointly with Springfield’s Metro Plan partners. Adoption of Springfield-specific economic development policies and implementation actions – through adoption of the Springfield 2030 Refinement Plan – will allow the City to clearly articulate its desired economic future and its preferred land use strategies to attain that vision. The Springfield Commercial and Industrial Buildable Lands Inventory, Economic Opportunities Analysis provides 1) an employment forecast for Springfield; 2) identification of target industries; 3) a comparison of land capacity and demand; and 4) characteristics of needed sites to determine the sufficiency of sites available for economic land uses. OAR 660-009 requires cities to maintain an inventory of land to provide for at least a 20-year supply of commercial and industrial sites consistent with local community development objectives. The analysis seeks to answer the questions: ƒ Which industries are most likely to be attracted to the Eugene-Springfield area? ƒ Which industries best meet Springfield’s economic objectives? ƒ Which types of sites will be required by these industries? ƒ Does the City’s inventory provide land for needed sites? Demand for commercial and industrial land will be driven by the expansion and relocation of existing businesses and new businesses locating in Springfield. Employment is forecast to grow by 13,440 employees (a 32% increase) by 2030. The CIBL study provides technical analysis to determine the types of sites and the amount of land that would be required to provide for this future employment growth, based on the inventory of land available under existing Metro Plan designations and policies. OAR 660-009-0015(2) requires the City to identify the number and types of sites reasonably expected to be needed over the planning period. Types of needed sites are based on the site characteristics typical of expected uses. The key conclusions in the analysis of land availability and capacity for employment uses in Springfield are: ƒ The majority of employment growth in Springfield will not require vacant land. Springfield will be able to meet employment land needs on sites five acres and smaller within the existing UGB, through redevelopment, infill development, and employment uses on non-employment land (e.g., home occupations). The City assumes that 52% of new employment would not require vacant land. One of the City’s economic development strategies is to encourage redevelopment, especially in Downtown and Glenwood. Springfield concludes that 187 industrial sites and 340 commercial and mixed-use sites would redevelop to address land needs over the 20-year period. In addition to this assumption about redevelopment, Springfield assumes that all land needs on sites smaller than five acres would be accommodated through redevelopment. This portion of employment addresses the OAR 660-024-0050 requirements that the City consider “land use efficiency measures” prior to expanding the UGB. Policies in the Springfield 2030 Refinement Plan will articulate the City’s strategies to achieve this level of infill and redevelopment. ƒ Springfield will need employment land with characteristics that cannot be found within the existing UGB. The employment land needs that may not be met within the UGB are for sites five acres and larger. The Economic Opportunities Analysis identifies six needed industrial sites on 450 acres and eleven needed commercial and mixed-use sites on about 190 acres to meet the city’s economic development objectives over the plan period - a total of 17 sites with approximately 640 acres of industrial and other employment land on sites five acres and larger that cannot be accommodated within the existing UGB. Springfield’s inventory lacks employment sites of sufficient size, location and configuration to provide an adequate competitive supply of suitable land to respond to economic development opportunities as they arise. Sites suitable for commercial and industrial land uses (flat sites, frontage on arterials, access to rail and freeways, separation from residential uses, etc.) are already developed and/or designated for these uses. The City currently has only one buildable site 20 acres or larger. Availability of sites 20 acres and larger is important for attracting or growing large businesses, which are often traded-sector businesses. If the City does not have these large sites, there is little chance that the City will attract these types of businesses. There are relatively few large sites (20 acres or larger) available near I-5 available for development in the Southern Willamette Valley and in fact no sites with these characteristics in the Eugene- Springfield area. The City has no basis for assuming that redesignation of non-employment lands will provide the needed larger sites. Lands designated to accommodate the city’s other land use categories are needed for those planned uses. The City has no basis for assuming that all of the projected 13,000 new jobs can be located via redevelopment or that the need for large employment sites can be accommodated through assembly of small land parcels. Such assumptions would not take into account existing life cycle value of buildings, on-site compatibility of new uses with existing uses or the ability of all affected parties to be able to satisfy site needs at these locations. Springfield will need to add land to its Urban Growth Boundary to accommodate forecast employment growth and provide larger sites for target industry employers if the City is to meet local community development objectives. Adoption of the study will establish a clear economic development direction that identifies the city’s strengths and opportunities, and its position in the broader Southern Willamette Valley region. Adoption of the study will facilitate employment opportunities and job creation in Springfield by identifying industrial/employment land needs and developing an economic development strategy aimed at selected target industries. ATTACHMENTS Attachment 1: Draft Springfield Commercial and Industrial Buildable Lands Inventory and Economic Opportunities Analysis Attachment 2: Economic Development Objectives and Implementation Strategies Attachment 3: Summary of CIBL Stakeholder Committee Process Attachment 4: Planning Commission Recommendation Attachment 5: Comments received City of Springfield: Commercial and Industrial Buildable Lands Inventory and Economic Opportunities Analysis Prepared for City of Springfield by ECONorthwest 99 W. Tenth, Suite 400 Eugene, OR 97401 (541) 687-0051 Draft Report September 2009 Attachment 1-1 Written by: Robert Parker, Project Director Beth Goodman, Project Manager Whit Perkins, Research Assistant Date submitted: September 2009 ECO Project Number 7139 ECONorthwest 99 W. Tenth, Suite 400 Eugene, OR 97401 (541) 687-0051 Attachment 1-2 Acknowledgements Numerous people contributed to the completion of the Springfield economic opportunities analysis. We would like to acknowledge the hard work of the project Steering Committee, Technical Advisory Committee, and City of Springfield Staff. Steering Committee The Steering Committee provided community and business input in the economic opportunities analysis. The Steering Committee provided guidance on developing Springfield’s economic development strategy and provided input on assumptions used in the economic opportunities analysis. Steering Committee members included: City of Springfield elected or appointed officials, local business owners and business people, land- use advocacy groups, and residents of Springfield. Lee Beyer, Planning Commissioner, Committee Co-Chair Dan Egan, Executive Director, Springfield Chamber of Commerce, Committee Co-Chair Naomi Campollo, Springfield High School Student Philip Farrington, Director, Land Use Planning & Development, PeaceHealth George Grier, Board Member, Lane County Farm Bureau Brianna Huber, Thurston High School Student Mike Kelly, Springfield citizen Johnny Kirschenmann, Planning Commissioner Mayor Sid Leiken Donna Lentz, Springfield citizen Dave Marra, DC Real Estate Doug McKay, McKay Commercial Properties LLC Eve Montanaro, Watershed Coordinator, Middle Fork Willamette Watershed Council Don OldenBurg, Symantec Lauri Segel, Planner. Goal 1 Coalition Tim Stokes, Local business owner Guy Weese, Board Member Emerald Empire Art Association Kari Westlund, Executive Director, Convention Visitors Association of Lane County Steven Yett, Paramount Center, LLC. Richard Boyles, as alternate to Kari Westlund Jim Welsh, JD Welsh Company as alternate to Dave Mara Attachment 1-3 Technical Advisory Committee The Technical Advisory Committee (TAC) provided technical input in the economic opportunities analysis. The TAC included representatives from the City of Springfield Public Works Department, local service agencies, and State agencies. Mary Bridget Smith, Attorney, City of Springfield Attorney's Office Ken Vogeney, City Engineer, City of Springfield Engineering Matt Stouder, Engineering Supervisor, City of Springfield Engineering Len Goodwin, Assistant Public Works Director, City of Springfield Public Works Brian Conlon, Maintenance Division Manager, City of Springfield Public Works Maintenance Greg Ferschweiler, Maintenance Supervisor, City of Springfield Public Works Maintenance Tom Boyatt, Transportation Division Manager, City of Springfield Transportation Jon Driscoll, Transportation Engineer in Training, City of Springfield Transportation John Tamulonis, Community Development Manager, Springfield Economic Development Agency Courtney Griesel, Planner, Springfield Economic Development Agency Ed Moore, Field Representative, Department of Land Conservation and Development Jason Dedrick, Associate Planner, Eugene Planning Department Stephanie Shultz, Planner, Lane County Planning Department Jack Roberts, Executive Director, Lane Metro Partnership Chuck Gottfried, Assistant Manager, Metropolitan Wastewater Commission George Walker, Stormwater Facilities Planner, Metropolitan Wastewater Commission, David Helton, Transportation/Land Use Planner, Oregon Department of Transportation Bob Warren, Business Development Officer, Oregon Economic & Community Development Department Jeff DeFranco, Director of Communications and Facilities, Springfield School District Will Lewis, Springfield School District Robert Linahan, General Manager, Springfield Utility Board Greg Hyde, Planning and Development Manager, Willamalane Parks and Recreation District City of Springfield Staff David Reesor, Senior Planner Bill Grile, Development Services Director Greg Mott, Planning Manager Linda Pauly, Planning Supervisor Mark Metzger, Senior Planner Susie Smith, Public Works Director; Brandt Melick, GIS Program Supervisor; Michael Engelmann, GIS Analyst Attachment 1-4 Table of Contents Page EXECUTIVE SUMMARY ......................................................................................................................................... I TARGET INDUSTRIES ................................................................................................................................................... I COMPARISON OF LAND CAPACITY AND DEMAND ..................................................................................................... III CHARACTERISTICS OF NEEDED SITES ........................................................................................................... V IMPLICATIONS.......................................................................................................................................................... VI CHAPTER 1. INTRODUCTION ............................................................................................................................... 1 BACKGROUND ........................................................................................................................................................... 1 FRAMEWORK FOR ECONOMIC DEVELOPMENT PLANNING IN OREGON ........................................................................ 2 ORGANIZATION OF THIS REPORT ................................................................................................................................ 3 CHAPTER 2. LAND AVAILABLE FOR INDUSTRIAL AND OTHER EMPLOYMENT USES ..................... 5 DEFINITIONS .............................................................................................................................................................. 7 CONSTRAINTS .......................................................................................................................................................... 10 RESULTS .................................................................................................................................................................. 11 SHORT-TERM LAND SUPPLY ..................................................................................................................................... 25 CHAPTER 3. ECONOMIC TRENDS AND FACTORS AFFECTING FUTURE ECONOMIC GROWTH IN SPRINGFIELD .......................................................................................................................................................... 29 AVAILABILITY OF LABOR ........................................................................................................................................ 29 CHANGES IN EMPLOYMENT ...................................................................................................................................... 35 REGIONAL BUSINESS ACTIVITY ............................................................................................................................... 38 SPRINGFIELD’S COMPARATIVE ADVANTAGES ......................................................................................................... 40 CHAPTER 4. LAND DEMAND AND SITE NEEDS IN SPRINGFIELD ........................................................... 45 POTENTIAL GROWTH INDUSTRIES ............................................................................................................................ 45 SITE NEEDS .............................................................................................................................................................. 53 CHAPTER 5. LAND CAPACITY AND DEMAND ............................................................................................... 57 COMPARISON OF LAND CAPACITY AND DEMAND ..................................................................................................... 57 CHARACTERISTICS OF NEEDED SITES ....................................................................................................................... 59 IMPLICATIONS.......................................................................................................................................................... 63 APPENDIX A. NATIONAL, STATE, COUNTY, AND LOCAL TRENDS ........................................................ 67 APPENDIX B. FACTORS AFFECTING FUTURE ECONOMIC GROWTH IN SPRINGFIELD ............... 105 APPENDIX C. EMPLOYMENT FORECAST AND SITE NEEDS FOR INDUSTRIAL AND OTHER EMPLOYMENT USES ........................................................................................................................................... 119 Attachment 1-5 Attachment 1-6 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page i Executive Summary This report presents an Economic Opportunities Analysis (EOA) for the City of Springfield consistent with the requirements of statewide planning Goal 9 and the Goal 9 administrative rule (OAR 660-009). A goal of this project is to establish a clear economic development direction that identifies the city’s strengths and opportunities, and its position in the broader Southern Willamette Valley region. This project will facilitate employment opportunities and job creation in Springfield by identifying industrial/employment land needs and developing an economic development strategy aimed at selected target industries. WHAT IS SPRINGFIELD’S ECONOMIC DEVELOPMENT VISION? Springfield is a business-oriented city. The City is undergoing revitalization, with on-going redevelopment efforts in Downtown and Glenwood, and the recent opening of the hospital at RiverBend. The City’s vision for economic growth over the next 20-years combines sustaining existing businesses and helping them expand and embracing a broad variety of new opportunities for growth. The economic development strategy for Springfield can be summarized as follows: (1) Facilitate the redevelopment of Downtown Springfield and Glenwood through strategic infrastructure and other investments from programs such as urban renewal and planning for redevelopment. (2) Provide sites with a variety of site characteristics to meet both commercial and industrial economic opportunities, including providing sites that are available for relatively fast development. This includes providing large sites for major employers. (3) Use land within the existing urban growth boundary efficiently, through promoting redevelopment, infill development, and dense development in nodal areas. The study assumes that 52% of new employment during the planning period will locate on lands that are already developed. (4) Provide infrastructure efficiently and fairly by coordinating capital improvement planning with economic development planning. (5) Support and assist existing businesses within Springfield by assessing what help businesses need and developing programs to respond to business needs. Attachment 1-7 Page ii ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis (6) Attract and develop new businesses, especially those related to regional business clusters. The City would like to build on the developing health care cluster, promote development of high-tech businesses, and attract sustainable businesses. (7) Maintain flexibility in planning through providing efficient planning services and developing flexible planning policies to respond to the changing needs of businesses. This is a brief summary of Springfield’s economic development strategy. Chapter 3 of this report provides more detail on Springfield’s comparative advantages and target industries; the Springfield Economic Development Strategy (under separate cover) articulates the City’s economic development vision. TARGET INDUSTRIES An analysis of growth industries in Springfield should address two main questions: (1) Which industries are most likely to be attracted to the Eugene-Springfield area? and (2) Which industries best meet Springfield’s economic objectives? The types of industries that Springfield wants to attract have the following attributes: high-wage, stable jobs with benefits; jobs requiring skilled and unskilled labor; employers in a range of industries that will contribute to a diverse economy; and industries that are compatible with Springfield’s community values. The characteristics of Springfield will affect the types of businesses most likely to locate in Springfield. Springfield’s attributes that may attract firms are: the City’s proximity to I-5, high quality of life, proximity to the University of Oregon, the presence of the RiverBend campus, positive business climate, availability of skilled and semi-skilled labor, and proximity to indoor and outdoor recreational opportunities. Table S-1 summarizes target industries for Springfield during the 2010 to 2030 planning period. Attachment 1-8 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page iii Table S-1. Target industries, Springfield, 2010-2030 Target Industry Types of firms Attraction to Springfield Medical Services Medical firms, medical research firms, and other professional services Development of a medical cluster at RiverBend Services for seniors Health services that provide services to older people, such as assisted living facilities or retirement centers Aging population and presence of RiverBend Hospital Small Scale Manufacturing Manufacturers of: medical equipment, high-tech electronics, recreational equipment, furniture manufacturing, specialty apparel, and other specialty manufacturing Labor force, existing businesses, land availability, proximity to natural resources Call Centers Call centers Existing call center cluster and trained labor force Back-Office Functions Back-office functions include administrative functions, such as accounting or information technology High quality of life, available and trained labor force, and relatively low wages Tourism Industries that serve tourists, such as food services and accommodations Outdoor recreational opportunities and regional events such as the Olympic Track and Field trials, the Oregon Country Fair, or the University of Oregon Bach Festival Specialty Food Processing Food processing firms, such as those that specialize in organic or natural foods or wineries Proximity to agricultural resources High-Tech The types of firms range from high- tech manufacturing to data centers to software development Access to highly educated labor, access to comparatively inexpensive electricity, and high quality of life Professional and Technical Services Engineering, research, medical-related professionals, and other professional services that are attracted to high- quality settings Access to highly educated labor and high quality of life Green businesses Green construction firms, organic food processing, sustainable logging and/or lumber products manufacturing, or alternative energy production Access to highly educated labor, access to natural resources, and high quality of life Corporate Headquarters Corporate headquarters High quality of life, location along I-5, and availability of educated workers Services for Residents Retail and government services, especially education Growing population Attachment 1-9 Page iv ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis COMPARISON OF LAND CAPACITY AND DEMAND This section presents an analysis of land availability and capacity for employment uses in Springfield. The key conclusions in this section are: (1) The majority of employment growth in Springfield will not require vacant land. The analysis concludes that that 52% of new employment would not require vacant land, consistent with the City’s economic development strategies to encourage redevelopment, especially in Downtown and Glenwood. This portion of employment addresses the OAR 660-024-0050 requirements that the City consider “land use efficiency measures” prior to expanding the UGB. The EOA does not describe the specific policies the City will adopt to achieve this level of infill and redevelopment. Those policies, however, will be adopted as part of the City’s overall UGB justification. (2) Springfield will need employment land with characteristics that cannot be found within the existing UGB. The City will need 17 sites with about 640 acres of industrial and other employment land on sites five acres and larger that cannot be accommodated within the existing UGB. Table S-2 shows a comparison of land supply and need in terms of sites by site size, based on the analysis of potential growth industries in Springfield in Chapter 4. The results show that Springfield has a deficit of about 6 industrial sites and 44 commercial and mixed use sites. Attachment 1-10 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page v Table S-2. Comparison of vacant land supply and site needs, industrial and other employment land, Springfield UGB, 2010-2030 Source: ECONorthwest. Converting from the site needs shown in Table S-2 to an estimate of land needs requires making assumptions about average site sizes needed in Springfield. Table S-3 shows average site for needed sites in Springfield. Table S-3. Average size of needed sites, Springfield UGB Source: ECONorthwest Table S-4 shows total sites needed (from Table S-2) and total land need (based on number of sites needed in Table S-2 and average site size in Table S-3). The results show that Springfield has a deficit of the following land types for the 2010 to 2030 period: • Industrial land. Springfield has a need for 450 acres of industrial land on six sites. Springfield has a need for three 50 acre sites, and need for three 100 acre sites. In the context of this study, industrial uses means any major employer that would be allowed in an industrial land designation (e.g., campus industrial, light-medium industrial, light-medium industrial mixed use, heavy industrial, or special heavy industrial). Less than 1 1 to 2 2 to 5 5 to 20 20 to 50 Greater than 50 Total Buildable Land Inventory Vacant Industrial 72 24 20 12 0 0 128 Commercial and Mixed Use 104 14 6 4 0 0 128 Redevelopable Industrial 122 28 31 5 1 0 187 Commercial and Mixed Use 305 20 15 0 0 0 340 Total Buildable Sites Industrial 194 52 51 23 1 0 321 Commercial and Mixed Use 409 34 21 4 0 0 468 Site Needs Needed sites Industrial 5 7 13 16 4 3 48 Commercial and Mixed Use 220 53 35 14 1 0 323 Surplus (deficit) of sites Industrial 189 45 38 7 (3) (3)273 Commercial and Mixed Use 189 (19) (14) (10) (1)0 145 Site Size (acres) Less than 1 1 to 2 2 to 5 5 to 20 20 to 50 Greater than 50 Industrial 0.5 1.5 3.0 15.0 50.0 100.0 Commercial and Mixed Use 0.3 1.5 3.0 15.0 40.0 50.0 Site Size (acres) Attachment 1-11 Page vi ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis • Commercial sites. Springfield has a need for 261 acres of commercial land on 44 sites. Springfield’s commercial site needs range from sites 1 to 2 acres in size to one site that is 40 acres in size. Table S-4. Total employment site and land needs, Springfield UGB, 2010-2030 Source: ECONorthwest Note: Table S-4 shows total site and land needs for the 2010-2030 period. The summary of land needs in Table S-4 shows Springfield’s land need for all sites of all sizes. One of the City’s economic development strategies is to encourage redevelopment, especially in Downtown and Glenwood. Springfield concludes that 187 industrial sites and 340 commercial and mixed-use sites would redevelop to address land needs over the 20-year period. In addition to this assumption about redevelopment, Springfield assumes that all land needs on sites smaller than five acres would be accommodated through redevelopment. The City had a deficit of 23 commercial and mixed use sites smaller than five acres, which would require 71 acres of land (Table S-4). Table S-5 shows Springfield’s employment land deficiency, assuming that all site needs for sites smaller than five acres would be addressed through redevelopment. In short, Table S-5 shows the amount of land Springfield will need to add to its UGB to accommodate forecast employment growth and site needs. Springfield has a deficiency of six industrial sites on 450 acres and eleven commercial and mixed-use sites on about 190 acres that cannot be accommodated within the existing UGB over the 2010 to 2030 period. Less than 1 1 to 2 2 to 5 5 to 20 20 to 50 Greater than 50 Total Industrial Sites needed none none none none 3 3 6 Land need (acres) none none none none 150 300 450 Commercial and Mixed Use Sites needed none 19 14 10 1 0 44 Land need (acres)none 29 42 150 40 0 261 Total sites needed none 19 14 10 4 3 50 Total acres needed none 29 42 150 190 300 711 Site Size (acres) Attachment 1-12 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page vii Table S-5. Employment site and land deficiency, Springfield UGB, 2010-2030 Source: ECONorthwest Note: Total sites and total acres needed represent the sites and acres Springfield needs to add to its UGB. CHARACTERISTICS OF NEEDED SITES The Goal 9 Administrative Rule (OAR 660-009) requires that jurisdictions describe the characteristics of needed sites (OAR 660-009-0025(1)). The Administrative Rule defines site characteristics as follows in OAR 660-009- 0005(11): (11) "Site Characteristics" means the attributes of a site necessary for a particular industrial or other employment use to operate. Site characteristics include, but are not limited to, a minimum acreage or site configuration including shape and topography, visibility, specific types or levels of public facilities, services or energy infrastructure, or proximity to a particular transportation or freight facility such as rail, marine ports and airports, multimodal freight or transshipment facilities, and major transportation routes. The site needs analysis in Chapter 4 identified site needs for five types of buildings: warehousing and distribution, general industrial, office, retail, and other services. The characteristics of needed sites for each of these building types are described in Chapter 5. In general, the site characteristics for commercial and industrial sites include the following: (1) Site size. The analysis concludes that Springfield will need to add land to its UGB for sites larger than five acres. Site sizes vary from five to 20 acres to greater than 50 acres. (2) Street access. These larger sites will all need to have access to major streets within Springfield, with some sites located near an interchange on I-5. Traffic from the sites should not be routed through residential neighborhoods. Less than 5 5 to 20 20 to 50 Greater than 50 Total Industrial Sites needed none none 3 3 6 Land need (acres) none none 150 300 450 Commercial and Mixed Use Sites needed none 10 1 none 11 Land need (acres)none 150 40 none 190 Total sites needed none 10 4 3 17 Total acres needed none 150 190 300 640 Site Size (acres) Attachment 1-13 Page viii ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis (3) Topography. The sites should be relatively flat, with not more than 15% slope; with sites that are ideally less than 5% slope. (4) Access to services. City services should be accessible to the site, including street access, sanitary sewer, and municipal water. Other services to sites should include: electricity, phone, and high-speed telecommunications. Capacity and demand for these services will vary by uses on each site. (5) Land ownership. Sites with a single owner are strongly preferred, to reduce the cost of land assembly. IMPLICATIONS The economic opportunities analysis has the following implications for Springfield’s economic land needs. • Economic growth. Decision makers and community members that participated in the economic opportunities analysis agreed that economic growth is desirable over the planning period. The employment forecast indicates Springfield will add 13,440 new employees between 2010 and 2030 using the OAR 660-024- 0040(8)(a)(ii) safe harbor methodology. The economic opportunities analysis concludes that Springfield will have employment growth in a wide variety of businesses, from services and retail for residents to industrial development to medical services. The City wants to diversify its economy and attract higher wage and professional jobs. • Buildable lands. Springfield has 3,415 acres currently designated for industrial and other employment use. About two-thirds of the land designated for employment within Springfield’s UGB is considered developed land that is not expected to redevelop over the 20 year planning period. Less than 15% of this land is buildable, unconstrained land. The majority of buildable, unconstrained employment land in Springfield has existing development on it that is expected to redevelop over the planning period. Springfield has a lack of buildable large sites, with one buildable site 20 acres and larger and 23 buildable sites in the five to 20 acre size range. • Employment that will not require vacant land. Springfield concludes that 52% of employment growth would not require vacant Attachment 1-14 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page ix employment land.1 Springfield’s assumptions about employment that will not require vacant land are as follows: o Fourteen percent of employment (1,918 employees) will locate in non-employment designations. These employees will include people with home occupations, working from home, and businesses that locate in residential or other non-employment designations. This assumption is based on the percent of employment located in non-employment designations in 2006. See Appendix C and Table C-7 for more information about this assumption. o Ten percent of new employment (1,344 employees) will locate in existing built space. See Appendix C and Table C-7 for more information about this assumption. o Twenty-seven percent of new employment (3,669 employees) will locate on redevelopable sites. Table 5-1 shows that Springfield assumes 187 industrial sites and 340 commercial and mixed use sites will redevelop over the planning period. The estimate of employment on these sites was based on the average number of employees per site by site size in 2006. See Chapter 2 for more information about redevelopment assumptions. • Redevelopment potential. The analysis of redevelopment potential and need for employment land assumes that Springfield will have substantial redevelopment over the planning period. Consistent with City Council policies, the areas that are expected to have the most redevelopment in the plan period are in Glenwood, especially along the Willamette Riverfront and Franklin/McVay corridor , and in the Downtown Urban Renewal District. All land deficiencies for sites smaller than five acres are expected to be addressed through redevelopment of existing sites. The majority of retail land needs are expected to be addressed through redevelopment. The City will need to make strategic investments that support redevelopment and to continue supporting redevelopment through City plans and policies. For example, the City has established urban renewal districts in Glenwood and Downtown to help finance the public improvements necessary to support redevelopment and is 1 The estimate of 52% of new employment not requiring vacant land is based on the assumption that 1,918 employees will locate in non-employment designations, 1,344 employees will locate in existing built space, and 3,669 employees will locate on redevelopable sites. The total number of new employees not requiring new land is 6,931 employees, which is approximately 52% of the forecasted growth of 13,440 jobs. Attachment 1-15 Page x ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis currently conducting planning studies in both districts to update plans and policies. Redevelopment in Springfield requires a variable level of investments in public infrastructure to provide and upgrade public facilities and remove existing impediments to development. This portion of employment addresses the OAR 660-024-0050 requirements that the City consider “land use efficiency measures” prior to expanding the UGB. The EOA does not describe the specific policies the City will adopt to achieve this level of infill and redevelopment. Those policies, however, will be adopted as part of the City’s overall UGB justification. • Need for large sites. Springfield will be able to meet employment land needs on sites five acres and smaller within the existing UGB, through redevelopment, infill development, and employment uses on non-employment land (e.g., home occupations). The employment land needs that may not be met within the UGB are for sites five acres and larger. The City currently has only one buildable site 20 acres or larger. Availability of sites 20 acres and larger is important for attracting or growing large businesses, which are often traded-sector businesses. If the City does not have these large sites, there is little chance that the City will attract these types of businesses. While it may not be clear exactly what the business opportunities may be in ten to twenty years, it is clear that these businesses will not locate in Springfield if land is not available for development. For example, in the past twenty years, most of the Gateway area developed. The area has a mix of uses including a regional mall, apartments, offices, and more recently, the PeaceHealth Campus. Twenty-years ago it would have seemed highly unlikely that PeaceHealth would build their new facility in Springfield. If the City had not had desirable, serviceable land available, PeaceHealth would probably not have located their new facility in Springfield. • Short-term land supply. Based on the Goal 9 definition of short-term land supply and criteria for “engineering feasibility,” the majority of buildable land within the Springfield UGB is part of the short- term land supply, assuming that funding is available to extend services. The Goal 9 rule does not account for land availability, such as whether the landowner is willing to sell it or the owner is willing to redevelop it. The Goal 9 rule also does not account for differences in site characteristics, such as site size. As a result, developers may have difficulty finding developable land with specific site characteristics, such as large sites with highway access. Attachment 1-16 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 1 Chapter 1 Introduction This report presents an Economic Opportunities Analysis (EOA) for the City of Springfield consistent with the requirements of statewide planning Goal 9 and the Goal 9 administrative rule (OAR 660-009). Goal 9 describes the EOA as “an analysis of the community's economic patterns, potentialities, strengths, and deficiencies as they relate to state and national trends” and states that “a principal determinant in planning for major industrial and commercial developments should be the comparative advantage of the region within which the developments would be located.” BACKGROUND In 2007, the Oregon Legislature passed House Bill 3337 which directs Springfield and Eugene to establish separate Urban Growth Boundaries (UGBs). The city started work on a key element of its new UGB in 2006 by initiating a residential buildable lands inventory and contracting ECONorthwest to conduct a Goal 10 housing needs analysis. With the passage of HB 3337, the City is preparing additional studies necessary for the establishment of a separate UGB—including an economic opportunities analysis (EOA), and an economic development strategy. The project includes two key phases: 1. An inventory of commercial and industrial lands and a projection of the acreage needed to accommodate Springfield’s future commercial and industrial needs. This phase is called the economic opportunities analysis (EOA). 2. An analysis of alternative locations where the UGB might be expanded to accommodate the city’s future commercial, industrial, and residential needs—if the City identifies a deficiency of lands. This phase is called the alternatives analysis. This report presents the results of the economic opportunities analysis. The economic development strategy is presented in a separate document, as is the alternatives analysis. ECONorthwest worked closely with City staff, a Technical Advisory Committee, and a Stakeholder Committee in preparing the Springfield Economic Opportunities Analysis. This report incorporates many comments provided by these groups. Attachment 1-17 Page 2 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis FRAMEWORK FOR ECONOMIC DEVELOPMENT PLANNING IN OREGON The content of this report is designed to meet the requirements of Oregon Statewide Planning Goal 9 and the administrative rule that implements Goal 9 (OAR 660-009). The Land Conservation and Development Commission adopted amendments to this administrative rule in December 2005.2 The analysis in this report is designed to conform to the requirements for an Economic Opportunities Analysis in OAR 660-009 as amended. 1. Economic Opportunities Analysis (OAR 660-009-0015). The Economic Opportunities Analysis (EOA) requires communities to identify the major categories of industrial or other employment uses that could reasonably be expected to locate or expand in the planning area based on information about national, state, regional, county or local trends; identify the number of sites by type reasonably expected to be needed to accommodate projected employment growth based on the site characteristics typical of expected uses; include an inventory of vacant and developed lands within the planning area designated for industrial or other employment use; and estimate the types and amounts of industrial and other employment uses likely to occur in the planning area. Local governments are also encouraged to assess community economic development potential through a visioning or some other public input based process in conjunction with state agencies. 2. Industrial and commercial development policies (OAR 660-009-0020). Cities with a population over 2,500 are required to develop commercial and industrial development policies based on the EOA. Local comprehensive plans must state the overall objectives for economic development in the planning area and identify categories or particular types of industrial and other employment uses desired by the community. Local comprehensive plans must also include policies that commit the city or county to designate an adequate number of employment sites of suitable sizes, types and locations. The plan must also include policies to provide necessary public facilities and transportation facilities for the planning area. Finally, cities within a Metropolitan Planning Organization (which includes Springfield) must adopt policies that identify a competitive short- 2 The amended OAR 660-009, along with a Goal 9 Rule Fact Sheet, are available from the Oregon Department of Land Conservation and Development at http://www.oregon.gov/LCD/econdev.shtml. Attachment 1-18 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 3 term supply of land for desired industrial and other employment uses as an economic development objective. 3. Designation of lands for industrial and commercial uses (OAR 660-009- 0025. Cities and counties must adopt measures to implement policies adopted pursuant to OAR 660-009-0020. Appropriate implementation measures include amendments to plan and zone map designations, land use regulations, public facility plans, and transportation system plans. More specifically, plans must identify the approximate number, acreage and characteristics of sites needed to accommodate industrial and other employment uses to implement plan policies, and must designate serviceable land suitable to meet identified site needs. Plans for cities and counties within a Metropolitan Planning Organization or cities and counties that adopt policies relating to the short-term supply of land must designate suitable land to respond to economic development opportunities as they arise. This report is an Economic Opportunities Analysis, the first key element required by Goal 9. This EOA includes an analysis of national, state, regional, and county trends as well as an employment forecast that leads to identification of needed development sites. It also includes an inventory of buildable commercial and industrial land in Springfield. ORGANIZATION OF THIS REPORT The remainder of this report is organized as follows: • Chapter 2, Land Available for Industrial and Other Employment Uses presents an inventory of industrial and other employment lands. • Chapter 3, Economic Trends and Factors Affecting Future Economic Growth in Springfield summarizes historic economic trends that affect current and future economic conditions in Springfield. It also summarizes Springfield comparative advantages formed by the mix of factors present in Springfield • Chapter 4, Land Demand and Site Needs in Springfield presents the employment forecast for Springfield and an estimate of how much land is needed to accommodate the 20- year employment forecast. It also describes the types of sites that are needed to accommodate industries that are likely to locate or expand in Springfield. Attachment 1-19 Page 4 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis • Chapter 5, Implications presents a comparison of land supply and site needs and discusses the implications of the Economic Opportunities Analysis. This report also includes three appendices: • Appendix A, Review of National, State, Regional, County, and Local Trends describes national, state, and local economic trends that will influence the regional economy. Appendix A presents detailed information about economic trends that may affect Springfield, which is summarized in Chapter 3. • Appendix B, Factors Affecting Future Economic Growth in Springfield discusses the comparative advantages formed by the mix of factors present in Springfield. Springfield’s comparative advantages are summarized in Chapter 3. • Appendix C, Employment Forecast and Site Needs for Industrial and Other Employment Uses presents an employment forecast and analysis of needed sites for Springfield for the period 2010-2030 and is summarized in Chapter 4. Attachment 1-20 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 5 Land Available for Industrial Chapter 2 and Other Employment Uses The Springfield Commercial and Industrial Buildable Lands (CIBL) inventory is intended to identify lands within the Springfield urban Growth Boundary (UGB) that are suitable for development and can accommodate employment growth. Buildable lands inventories are sometimes characterized as supply of land to accommodate growth. Population and employment growth drive demand for land. The amount of land needed depends, in part, on the density of development as well as assumptions about redevelopment and infill. This chapter presents the CIBL inventory for the City of Springfield. The results are based on analysis of Geographic Information System data provided by the City of Springfield Public Works Department and the Lane Council of Governments. The buildable land inventory also used aerial orthophotographs and review by city staff for verification. The buildable lands inventory includes lands east of the Interstate 5 center line in the Metro UGB. For the purpose of the inventory, these lands were considered to be in the Springfield portion of the UGB.3 ECO worked closely with City Staff, a Technical Advisory Committee, and a Stakeholder Committee during the development and review of the Springfield commercial and industrial buildable lands inventory (CIBL). ECO developed the inventory using the following steps: • Assemble and document datasets. ECO identified data from the Regional Land Information Database (RLID) and GIS data from the City of Springfield and the Lane Council of Governments as primary datasets on which the inventory and analysis was built. RLID includes assessment and taxation data maintained by Lane County. • Preliminary analysis. ECO conducted a preliminary analysis with the GIS and data tables selected for inclusion in the database. The purpose of this task was to work with City staff and the TAC to 3 Springfield did not have a separate UGB at the time this study was completed. This study is intended to meet part of the requirements of H.B. 3337 which will lead to the establishment of a UGB for the City of Springfield independent of the Eugene-Springfield Metropolitan UGB. Attachment 1-21 Page 6 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis determine the optimal definitions and supporting methodology to base the final analysis and database structure. • Data processing and GIS analysis. In this step ECO performed the GIS analysis and data processing steps necessary to populate the database. Table 2-1 shows plan designations that were included in the commercial and industrial buildable lands inventory. All of the designations included in the inventory allow employment outright. The inventory, however, includes several mixed use designations that allow both employment and housing. The inventory generally uses the 2004 Metro Plan designations with two exceptions: (1) Glenwood, where a 2005 plan amendment changed the designation on approximately 47 acres from Light Medium Industrial Mixed Use to Mixed Use; and (2) the PeaceHealth site where land was redesignated from residential to designations that allow employment. Table 2-1. Metro plan designations included in the Springfield commercial and industrial buildable lands inventory Note: Allowed land uses indicates what uses are allowed in each plan designation. The CIBL includes any plan designation that allows employment, including mixed use designations. • Verification. ECO used a multi-step verification process. The initial verification occurred as part of the preliminary analysis. This step included a staff-level review of preliminary database output (maps) showing the land base and plan designations. The second round of verification involved a “rapid visual assessment” of land classifications using GIS and recent aerial photos for this analysis. The rapid visual assessment involved reviewing classifications overlaid on 2005 aerial photographs to verify uses on the ground. ECO reviewed all tax lots included in the inventory using the rapid Plan Designation Commercial Industrial Residential In CIBL? Campus Industrial yes yes no yes Commercial yes no no yes Commercial Mixed Use yes no yes yes Heavy Industrial no yes no yes High Density Res Mixed Use yes no yes yes Light Medium Industrial no yes no yes Light Medium Industrial Mixed Use no yes no yes Major Retail Center yes no no yes Medium Density Res Mixed Use yes no yes yes Mixed Use yes yes yes yes Special Heavy Industrial no yes no yes Allowed Land Uses (yes/no) Attachment 1-22 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 7 visual assessment methodology. The third round of verification involved city staff verifying the rapid visual assessment output. The draft inventory was then circulated for review by the TAC and the Stakeholder Committee. This review resulted in a number of changes which are reflected in the inventory as presented in this report. In summary, ECO used a systematic process to complete the CIBL inventory that was intended to provide the greatest degree of accuracy possible. DEFINITIONS The first step in the buildable inventory was to develop working definitions and assumptions. ECO initially classified land using a rule- based methodology. The rules applied by ECO to classify land are described below. The accompanying maps show the results of the application of those rules, with some adjustments made based on review of 2004 aerial photos and building permit data. ECO began the buildable lands analysis with a tax lot database provided by the City’s GIS Staff. The inventory used tax lots as the unit of analysis because (1) it is a commonly accepted unit for land inventories, and (2) tax lots link directly to other data sets (e.g., assessment data, addresses, etc.) The tax lot database was current as of February 2008. The inventory builds from the tax lot-level database to estimates of buildable land by plan designation. A key step in the buildable lands analysis was to classify each tax lot into a set of mutually exclusive categories. Consistent with accepted methods for buildable lands inventories and applicable administrative rules, all tax lots in the UGB are classified into one of the following categories: • Vacant land. Tax lots that have no structures or have buildings with very little value. For the purpose of this inventory, lands with improvement values under $10,0004 are considered vacant (not including lands that are identified as having mobile homes). 5 4 Improvement values were from 2008 Lane County Assessment and Taxation data and reflect the County’s estimate of the market value of improvements. 5 Note that this definition is more inclusive than what statewide planning policy requires. OAR 600-009-0005(14) provides the following definition: "Vacant Land" means a lot or parcel: (a) Equal to or larger than one half-acre not currently containing permanent buildings or improvements; or (b) Equal to or larger than five acres where less than one half-acre is occupied by permanent buildings or improvements. The implication of using a more inclusive definition are that more land was considered available in the inventory than would be if the state definitions were used. Attachment 1-23 Page 8 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis • Developed land. Land that is developed at densities consistent with current zoning/plan designation and improvements that make it unlikely to redevelop during the analysis period. Lands not classified as vacant, potentially redevelopable, or public are considered developed.6 Thus, the definition of developed land used for the CIBL is different (e.g., more inclusive) than the definition in the administrative rule. For purposes of the CIBL, developed land is considered committed during the 20-year period and unavailable for redevelopment. Lands in public ownership were generally considered unavailable for development unless identified by City staff as being available for development at some time during the 20-year planning period. This includes uses such as electrical substations, parks, and private cemeteries. Lands in Federal, State, County, or City ownership were also considered committed. • Potentially Redevelopable land. Land on which development has already occurred but on which, due to present or expected market forces, there exists the potential that existing development will be converted to more intensive uses during the planning period. Redevelopable land is a subset of developed land and was identified using improvement to land value ratios and building coverage ratios. For the purpose of the CIBL, potentially redevelopable land corresponds with the definition of “developed land” as stated in OAR 660-009-0005(1). Redevelopment potential is discussed in more detail later in this chapter. The land classifications result in identification of lands that are vacant or potentially redevelopable. The inventory includes all lands within the Springfield UGB. Map 2-1 shows lands by plan designation within the Springfield UGB. 6 Note that OAR 660-009-0005(1) uses the following definition: (1) "Developed Land" means non-vacant land that is likely to be redeveloped during the planning period. This study defines developed land as developed and defines land “likely to be redeveloped” as potentially redevelopable. Attachment 1-24 A MAIN Q BI-5D I-105 JASPER5TH28TH MARCOLA42NDCAM P C R E E K E THURSTON G CENTENNIAL MILL7TH2ND58TH21STOLYMPIC 10TH69THMCKENZIE HARLOWGATEWAY 32NDMCVAY31STBELTLINE 70TH67THDAISY14TH19TH 66TH30THASPENFRANKLIN36THHW Y 5 8 48TH35THFAIRVIEW HAYDEN BRIDGE YOLANDA 57THLAURAPIONEER PARKWAY EAST52ND18THHIGH BANKS HWY 9 9S COMMERCIAL INTERNATIONAL GONYEARAINBOWI-5 ONRAMPGARDENPARK WAY GAME FARM PRIV A T E BOB STRAUB MENLOOLD COBURGBRACKENFERNI-5A 30THPRIVATE DAISY GGAME FARM E MAIN JASPER I- 5 ONRAMPGAME FARMCity of Springfield O r e g o n Map 2-1 Commercial and Industrial Plan Designations ECONorthwest, October 2008 0 2,300 4,6001,150 Feet¯ City Limits Urban Growth Boundary Legend Tax Lots Plan Designation Campus Industrial Commercial Commercial Mixed Use Heavy Industrial LIGHT MED IND MIXED USE Light Medium Industrial Major Retail Center Special Heavy Industrial Note: PeaceHeath plan amendments are not reflected in the plan designations shown on this map. The PeaceHealth Campus is considered part of the commercial and industrial land base. Mixed-Use Medium Density Residential Mixed Use Attachment 1-25 Page 10 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis CONSTRAINTS Constraints are factors that preclude land development or affect the desirability of land for development. OAR 660-009-0005(2) provides the following definition of “development constraints:” “Development Constraints” means factors that temporarily or permanently limit or prevent the use of land for economic development. Development constraints include, but are not limited to, wetlands, environmentally sensitive areas such as habitat, environmental contamination, slope, topography, cultural and archeological resources, infrastructure deficiencies, parcel fragmentation, or natural hazard areas. Thus, the Administrative Rule provides a broad definition of constraints and leaves discretion for local governments in the application of the definition. For the purpose of this study, the following factors are considered absolute development constraints which make employment land unsuitable for development: 1. Wetlands 2. Floodway 3. Slopes over 15% 4. Riparian resource areas The following factors are partial development constraints. Land with these constraints is classified as “constrained” on employment land. Development can occur on “constrained” land and no deductions were made from the inventory for these factors. • Floodplain • Willamette River Greenway • BPA Easements The inventory summary that follows addresses “absolute” and “partial” constraints separately and summarizes lands as either “unbuildable acres” (e.g., no development may occur) or “constrained acres” (e.g., one or more constraints are present but those constraints do not preclude development). Portions of individual tax lots can be in one or more of the following categories: “unconstrained,” “constrained,” or “unbuildable” (e.g., they are not suitable for development). Attachment 1-26 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 11 RESULTS LAND BASE The first step in the CIBL inventory was to determine the land base. This step was necessary because the inventory only covers a subset of land in the Springfield UGB (lands that accommodate employment). The land base is the subset of tax lots that fall within the plan designations included in the CIBL (see Table 2-1). Table 2-2 shows acres within the Springfield UGB and city limits in 2008. According to the City GIS data, Springfield has about 14,603 acres within its UGB. Of the 14,603 acres, 12,139 acres (about 83%) are in tax lots. Land not in tax lots is primarily in streets and waterways. Springfield has about 9,958 acres within its City Limits; of these 8,060 acres (about 81% of total acres in the City Limit) are in tax lots. Additionally, the City has about 4,645 acres between the City Limits and Urban Growth Boundary (the UGA); of this about 4,079 acres are in tax lots. Table 2-2. Acres in Springfield UGB and City Limit, 2008 Source: City of Springfield GIS data; analysis by ECONorthwest Note: Urban Growth Area is the unincorporated area between the City Limits and Urban Growth Boundary Table 2-2 summarizes all land in the Springfield UGB. The next step was to identify the commercial and industrial land base (e.g., lands with plan designations that allow employment or “employment lands”). The land base includes traditional commercial and industrial designations, as well as mixed-use designations. Table 2-1 provides a list of plan designations included in the land base. Note that not all of the land in mixed-use designations will be used for employment. Table 2-3 shows that about 3,415 acres within the Springfield UGB are included in the commercial and industrial land base. Thus, about 28% of land within the Springfield UGB is included in the Commercial and Industrial land base. The database includes all land in tax lots that have any portion that is in a commercial or industrial plan designation. Area Tax Lots Total Acres Acres in Tax Lots Percent in Tax Lots City Limits 19,477 9,958 8,060 81% Urban Growth Area 3,150 4,645 4,079 88% Total 22,627 14,603 12,139 83% Attachment 1-27 Page 12 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table 2-3. Lands designated for commercial and industrial uses, Springfield UGB, 2008 Source: analysis by ECONorthwest Table 2-4 summarizes acres by plan designation for employment lands within the Springfield UGB. Of lands designated for employment, about 65% (2,203 acres) are in industrial designations, 21% (716 acres) are in commercial designations, and 14% (495 acres) are in mixed use designations. Not all of the land in mixed use designations will be used for employment—housing is a key element of mixed-use designations. Table 2-4. Acres by employment plan designation, Springfield UGB, 2008 Source: City of Springfield GIS data; analysis by ECONorthwest Note: Totals may be off by up to one acre due to rounding errors. Table 2-5 shows acres by classification and constraint status for the Springfield UGB in 2008. Analysis by constraint status (the table columns) shows that about 2,040 acres are classified as built or committed (e.g., unavailable for development), 543 were classified as vacant. Not all Area Value Springfield UGB Number of Tax Lots 22,627 Acres in Tax Lots 12,139 Springfield CIBL Tax Lots in Employment Designations 2,104 Acres in Land Base in Employment Designations 3,415 Plan Designation Tax Lots Total Acres in Tax Lots Industrial Campus Industrial 43 352 Light Medium Industrial 375 541 Heavy Industrial 250 1,163 Special Heavy Industrial 5 147 Subtotal 673 2,203 Commercial Commercial 731 570 Community Commercial 4 30 Major Retail Center 119 116 Subtotal 854 716 Mixed Use Commercial Mixed Use 430 222 Light Medium Industrial Mixed Use 19 116 Medium Density Res Mixed 64 34 Mixed Use 64 123 Subtotal 577 495 Total 2,104 3,415 Attachment 1-28 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 13 vacant lands are available for development—the inventory identified 189 unbuildable acres on vacant tax lots, leaving 355 acres of vacant, Suitable land. The inventory identified 669 acres that are potentially redevelopable based on the criteria described in the definitions section. All of these lands have existing improvements, but the value or character of the improvements suggests redevelopment potential. Of lands with redevelopment potential, 88 acres are unbuildable and the remaining 581 acres are buildable (e.g., they have redevelopment potential). Table 2-5. Acres by classification, Springfield UGB, 2008 Source: City of Springfield data; analysis by ECONorthwest Note: Totals may be off by up to one acre due to rounding errors. Classification Tax Lots Acres in Tax Lots Developed Acres Unbuildable Acres Constrained Acres Unconstrained Acres Developed 1,295 2,039 1,710 329 0 0 Master Plan 18 163 0 2 0 161 Potentially Redevelopable 535 669 na 88 37 544 Vacant 256 543 0 189 76 279 Total 2,104 3,415 1,710 608 112 985 Suitable Land Attachment 1-29 A MAIN Q BI-5D I-105 JASPER5TH28TH MARCOLA42NDCA M P C R E E K E THURSTON G CENTENNIAL MILL 7TH2ND58TH21STOLYMPIC 10TH69THMCKENZIE HARLOWGATEWAY 32NDMCVAY31ST70TH67THDAISY14TH19TH 66TH30THASPENFRANKLIN36THHW Y 5 8 48TH35THBELTLINE FAIRVIEW HAYDEN BRIDGE YOLANDA 57THLAURAPIONEER PARKWAY EAST52ND18THHIGH BANKS HWY 9 9 S COMMERCIAL INTERNATIONAL GONYEARAINBOWI-5 ONRAMPGARDENPARKWA Y CHAD GAME FARM PRIV A T E BOB STRAUB MENLO BRACKENFERNI -5 A 30THPRIVATE DAISY GGAME FARM E FRANKLIN MAIN JASPERGAME FARMCity of Springfield O r e g o n Map 2-2 Commercial and Industrial Land by Classification and Nodal Overlay Status ECONorthwest, July 2009 0 2,700 5,4001,350 Feet¯ City Limits Urban Growth Boundary Legend Tax Lots Classification Note: Master planned category includes sites with approved master plans. PeaceHealth and Marcola Meadows are included in this classification. Developed Potentially Redevelopable Vacant Master Planned Nodal Development Overlay Attachment 1-30 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 15 VACANT SUITABLE LAND The next step in the land inventory is to net out portions of vacant tax lots that are unavailable for development. Areas unavailable for development fall into two categories: (1) developed areas of partially vacant tax lots, and (2) areas with physical constraints (in this instance areas with steep slopes, waterway buffers, or wetlands). Table 2-6 shows vacant land by development and constraint status. The data show that about 189 acres within vacant tax lots have development constraints that are unsuitable, leaving about 355 vacant suitable acres within the UGB. About 88 acres of redevelopable land has development constraints that are unbuildable, leaving about 581 suitable redevelopable acres within the UGB. Table 2-6. Vacant land by constraint status, Springfield UGB, 2008 Source: City of Springfield GIS data; analysis by ECONorthwest Note: Totals may be off by up to one acre due to rounding errors. Table 2-7 shows vacant land by plan designation. Map 2-3 shows the location of vacant land by plan designation. Map 2-4 shows vacant land with absolute constraints that are unbuildable and Map 2-5 shows vacant land with constraints. Classification Tax Lots Acres in Tax Lots Developed Acres Unbuildable Acres Constrained Acres Unconstrained Acres Potentially Redevelopable 535 669 na 88 37 544 Vacant 256 543 0 189 76 279 Total 791 1,212 1,710 277 112 823 Suitable Land Attachment 1-31 Page 16 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table 2-7. Vacant land by Plan Designation, Springfield UGB, 2008 Source: City of Springfield GIS data; analysis by ECONorthwest Note: Totals may be off by up to one acre due to rounding errors. Plan Designation Tax Lots Acres in Tax Lots Unbuildable Acres Constrained Acres Unconstrained Acres VACANT LAND Industrial Campus Industrial 14 131 77 40 14 Light Medium Industrial 65 124 33 17 74 Heavy Industrial 48 133 32 3 98 Special Heavy Industrial 1 48 39 1 8 Subtotal 128 435 181 61 194 Commercial Commercial 71 51 3 3 45 Community Commercial Major Retail Center 11 6 0 0 5 Subtotal 71 57 3 3 51 Mixed Use Commercial Mixed Use 27 28 2 2 24 Light Medium Industrial Mixed Use Medium Density Res Mixed 7 2 0 1 1 Mixed Use 12 21 3 9 9 Subtotal 46 51 5 11 34 Total 245 543 189 76 279 Suitable Land Attachment 1-32 A MAIN Q BI-5D I-105 JASPER5TH28TH MARCOLA42NDCA M P C R E E K E THURSTON G CENTENNIAL MILL 7TH2ND58TH21STOLYMPIC 10TH69THMCKENZIE HARLOWGATEWAY 32NDMCVAY31ST70TH67THDAISY14TH19TH 66TH30THASPENFRANKLIN36THHW Y 5 8 48TH35THBELTLINE FAIRVIEW HAYDEN BRIDGE YOLANDA 57THLAURAPIONEER PARKWAY EAST52ND18THHIGH BANKS HWY 9 9 S COMMERCIAL INTERNATIONAL GONYEARAINBOWI-5 ONRAMPGARDENPARKWA Y CHAD GAME FARM PRIV A T E BOB STRAUB MENLO BRACKENFERNI -5 A 30THPRIVATE DAISY GGAME FARM E FRANKLIN MAIN JASPERGAME FARMCity of Springfield O r e g o n Map 2-3 Vacant Commercial and Industrial Land and Development Constraints ECONorthwest, July 2009 0 2,500 5,0001,250 Feet¯ City Limits Urban Growth Boundary Legend Tax Lots Plan Designation Campus Industrial Commercial Commercial Mixed Use Heavy Industrial LIGHT MED IND MIXED USE Light Medium Industrial Major Retail Center Medium Density Res Mixed Mixed Use Special Heavy Industrial Note: Does not include master planned sites Attachment 1-33 City of Springfield O r e g o n Map 2-4 Vacant Commercial and Industrial Land and Prohibitive Development Constraints ECONorthwest, July 2009. 0 2,300 4,6001,150 Feet¯ City Limits Urban Growth Boundary Legend Tax Lots Prohibitive Development Constraints Slopes over 15% Wetlands Riparian Resource Areas Floodway Plan Designation Campus Industrial Commercial Commercial Mixed Use Heavy Industrial LIGHT MED IND MIXED USE Light Medium Industrial Major Retail Center Medium Density Res Mixed Mixed Use Special Heavy Industrial Note: Prohibitive development constraints are constraints that prohibit development. Lands that have one or more prohibitive constraint are removed from acreages counted as buildable. Attachment 1-34 City of Springfield O r e g o n Map 2-5 Vacant Commercial and Industrial Land and Development Constraints ECONorthwest, July 2009 0 2,100 4,2001,050 Feet¯ City Limits Urban Growth Boundary Legend Tax Lots Development Constraints Willamette River Greenway 100-year Floodplain Plan Designation Campus Industrial Commercial Commercial Mixed Use Heavy Industrial LIGHT MED IND MIXED USE Light Medium Industrial Major Retail Center Medium Density Res Mixed Mixed Use Special Heavy Industrial BPA Easements Note: Development constraints shown on this map do notpreclude development. These constraints may add complexity to land use review or potentially reduce development density.These areas are counted as constrained, but buildable. Attachment 1-35 Page 20 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table 2-8 shows vacant land by plan designation and by parcel size.7 This analysis is useful in that it shows the distribution of vacant land by parcel size, which allows an evaluation of whether a sufficient mix of parcel sizes is available. The distribution of buildable land by parcel size varies by plan designation, with the results showing the City has no vacant tax lots 20 acres or larger. Table 2-8. Suitable acres in vacant tax lots by plan designation and parcel size, Springfield UGB, 2008 Source: City of Springfield GIS data; analysis by ECONorthwest Note: Buildable acres includes “constrained” acres and “unconstrained” acres Note: Acres may not sum to tenths due to rounding errors. 7 The table shows total acres in vacant tax lots (constraints are not netted out) Plan Designation <0.25 0.25- 0.49 0.50- 0.99 1.00- 1.99 2.00- 4.99 5.00- 9.99 10.00- 19.99 20.00- 50.00 50+ Total Total Acres Industrial Campus Industrial 0.2 0.3 0.0 4.7 18.6 19.7 10.8 0.0 0.0 54.3 Light Medium Industrial 3.5 5.2 9.7 15.3 20.7 6.1 30.0 0.0 0.0 90.5 Heavy Industrial 1.0 2.4 8.8 14.7 29.3 19.0 25.8 0.0 0.0 101.0 Special Heavy Industrial 0.0 0.0 0.0 0.0 0.0 9.1 0.0 0.0 0.0 9.1 Subtotal 4.7 7.9 18.5 34.6 68.6 53.9 66.6 0.0 0.0 254.8 Commercial Commercial 4.4 6.4 10.8 7.5 6.5 13.0 0.0 0.0 0.0 48.6 Community Commercial Major Retail Center 0.71.41.81.70.00.00.00.00.05.6 Subtotal 5.0 7.8 12.6 9.3 6.5 13.0 0.0 0.0 0.0 54.1 Mixed Use Commercial Mixed Use 1.2 1.3 1.9 5.4 7.6 8.5 0.0 0.0 0.0 25.9 Light Medium Industrial Mixed Use Medium Density Res Mixed 0.5 0.6 0.6 0.0 0.0 0.0 0.0 0.0 0.0 1.7 Mixed Use 0.5 0.3 0.0 4.9 7.2 5.2 0.0 0.0 0.0 18.0 Subtotal 2.2 2.2 2.5 10.3 14.8 13.6 0.0 0.0 0.0 45.6 Total 11.9 17.9 33.6 54.1 89.9 80.5 66.6 0.0 0.0 354.5 Number of Tax Lots Industrial Campus Industrial 11035310014 Light Medium Industrial 19 13 12 11 7 1 2 0 0 65 Heavy Industrial 8 6 12 10 8 2 2 0 0 48 Special Heavy Industrial 0000010001 Subtotal 28 20 24 24 20 7 5 0 0 128 Commercial Commercial 29171652200071 Community Commercial Major Retail Center 44210000011 Subtotal 33211862200082 Mixed Use Commercial Mixed Use 125342100027 Light Medium Industrial Mixed Use Medium Density Res Mixed 4210000007 Mixed Use 41042100012 Subtotal 208484200046 Total 81 49 46 38 26 11 5 0 0 256 Lot Size (Suitable Acres) Attachment 1-36 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 21 REDEVELOPMENT POTENTIAL Redevelopment potential addresses land that is classified as developed that may redevelop during the planning period. While many methods exist to identify redevelopment potential, a common indicator is improvement to land value ratio. Different studies use different improvement to land value ratio thresholds. Redevelopment potential can be thought of as a continuum—from more redevelopment potential to less redevelopment potential. The factors that affect redevelopment are complicated and include location, surrounding uses, current use, land and improvement values and other factors. To facilitate a discussion with the Stakeholder Committee about redevelopment, we established a set of three increasingly inclusive criteria. To identify lands with redevelopment potential, ECO analyzed improvement to land value ratios and building coverage on tax lots. Tax lots were classified using the following criteria: Category Criteria Higher Redevelopment Potential Improvement to land value ratio <=0.3:1.0 Moderate Redevelopment Potential Building coverage <10% of total lot area and improvement value <=0.3:1.0 Lower Redevelopment Potential Building coverage <20% of total lot area and improvement value >=0.3:1.0 and <=0.5:1.0 The criteria above were used in combination with employment data to identify a reasonable threshold assumption to use for redevelopment. Table 2-9 shows the results of applying the criteria above. To better understand the implications on pre-existing employment, ECO associated the number of employees associated with each category. The results show a distribution that suggests lands in the higher and moderate categories account for a relatively small percentage of total employment in Springfield (about 3.5%). The lower potential category includes 19% of the city’s employment. Attachment 1-37 Page 22 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table 2-9. Tax lots by Redevelopment Potential categories Source: City of Springfield GIS data; analysis by ECONorthwest Note: Table 2-9 shows all redevelopment potential categories; lands in the lower potential category are not included as part of the redevelopable land inventory as explained below. Because the improvement to land value ratio is a gross indicator, it is reasonable to assume that not all of parcels that meet this criterion for redevelopment potential will be assumed to redevelop during the planning period. The data show that the lower potential criteria (building coverage <20% of total lot area and improvement value >=0.3:1.0 and <=0.5:1.0) includes 28% of the City’s total employment land base and more than 20% of covered employment in 2006. The significant amount of land and employment in this category suggests limited redevelopment potential (from a land capacity perspective, redevelopment only happens when an existing use is replaced by a use that has more employment). Thus, the lower potential category is not included as part of the redevelopable base. Excluding the lower category leaves 588 unconstrained acres that are potentially redevelopable. This represents the redevelopable land base that is used for the purpose of this study. Table 2-10 shows potentially redevelopable land by plan designation and by parcel size.8 This analysis is useful in that it shows the distribution of potentially redevelopable land by parcel size, which allows an evaluation of whether a sufficient mix of parcel sizes is available. The distribution of buildable land by parcel size varies by plan designation, with the results showing the City has very few vacant tax lots (1) over 20 acres with redevelopment potential. 8 The table shows total acres in vacant tax lots (constraints are not netted out) Category Total Acres Unconstrained Acres % of Land Base Employ- ment (2006) Higher Potential 352 352 10% 478 Moderate Potential 304 236 9% 833 Lower Potential 947 947 28% 7,107 Total 1,603 1,535 47% 8,418 Attachment 1-38 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 23 Table 2-10. Buildable acres in potentially redevelopable tax lots by plan designation and parcel size, Springfield UGB, 2008 Source: City of Springfield GIS data; analysis by ECONorthwest Note: Buildable acres includes “constrained” acres and “unconstrained” acres Note: Acres may not sum to tenths due to rounding errors. Plan Designation <0.25 0.25-0.49 0.50-0.99 1.00-1.99 2.00-4.99 5.00-9.99 10.00- 19.99 20.00- 50.00 50+ Total Total Acres Industrial Campus Industrial 0.2 0.5 1.9 3.4 5.0 0.0 0.0 0.0 0.0 11.0 Light Medium Industrial 3.9 10.0 10.6 12.4 36.3 19.4 0.0 0.0 0.0 92.7 Heavy Industrial 1.4 2.8 9.7 24.5 53.7 32.7 22.4 0.0 89.5 236.7 Special Heavy Industrial 0.0 0.0 0.0 1.7 0.0 0.0 12.4 63.2 0.0 77.4 Subtotal 5.5 13.3 22.2 42.0 95.0 52.1 34.9 63.2 89.5 417.7 Commercial Commercial 7.6 13.7 21.8 12.7 22.6 0.0 0.0 0.0 0.0 78.4 Community Commercial 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Major Retail Center 1.51.80.90.00.00.00.00.00.04.3 Subtotal 9.1 15.5 22.8 12.7 22.6 0.0 0.0 0.0 0.0 82.7 Mixed Use Commercial Mixed Use 9.6 7.8 14.3 10.0 8.9 0.0 0.0 0.0 0.0 50.6 Light Medium Industrial Mixed Use 0.1 0.3 0.7 0.0 0.0 0.0 0.0 0.0 0.0 1.1 Medium Density Res Mixed 0.4 0.3 2.5 1.2 9.2 0.0 0.0 0.0 0.0 13.5 Mixed Use 1.5 2.2 2.8 3.8 12.4 0.0 0.0 0.0 0.0 22.7 Subtotal 11.6 10.5 20.2 15.0 30.5 0.0 0.0 0.0 87.9 Total 26.2 39.4 65.2 69.7 148.1 52.1 34.9 63.2 89.5 588.2 Number of Tax Lots Industrial Campus Industrial 1122200008 Light Medium Industrial 38 26 14 9 13 3 0 0 0 103 Heavy Industrial 22 6 12 16 16 5 2 0 1 80 Special Heavy Industrial 0001001204 Subtotal 61 33 28 28 31 8 3 2 1 195 Commercial Commercial 70 37 31 9 6 0 0 0 0 153 Community Commercial Major Retail Center 176100000024 Subtotal 87 43 32 9 6 0 177 Mixed Use Commercial Mixed Use 692221730000122 Light Medium Industrial Mixed Use 1 1 1 0 0 0 0 0 0 3 Medium Density Res Mixed 2131200009 Mixed Use 117434000029 Subtotal 83 31 29 11 9 0 0 0 163 Total 2311078948468321535 Lot Size (Buildable Acres) Attachment 1-39 A MAIN Q BI-5D I-105 JASPER5TH28TH MARCOLA42NDCAMP C R E E K E THURSTONG CENTENNIAL MILL 7TH2ND58TH21STOLYMPIC 10TH69THMCKENZIE HARLOWGATEWAY 32NDMCVAY31STBELTLINE 70TH67THDAISY14TH19TH 66TH30THASPENFRANKLIN36THHWY 5 8 48TH35THFAIRVIEW HAYDEN BRIDGE YOLANDA 57THLAURAPIONEER PARKWAY EAST52ND18THHIGH BANKS HW Y 9 9 S COMMERCIAL INTERNATIONAL GONYEARAINBOWI- 5 O N R AM PGARDEN PARKWAYGAME FARM PRIVA T E BOB STRAUB MENLOOLD COBURGBRACKENFERNI- 5 A 30THPRIVATE DAISY G G A M E F A R M E MAIN JASPERGAME FARMCity of SpringfieldO r e g o n Map 2-6Potentially RedevelopableCommercial and Industrial Land ECONorthwest, July 2009 0 2,400 4,8001,200 Feet¯ City Limits Urban Growth Boundary Legend Tax Lots Plan Designation Campus Industrial Commercial Commercial Mixed Use Heavy Industrial LIGHT MED IND MIXED USE Light Medium Industrial Major Retail Center Medium Density Res Mixed Special Heavy Industrial Mixed Use Note: Redevelopment potential uses the Mediumrange assumptions recommended by the TAC and includes lots that meet the following criteria: Improvement to Land Value Ratio <=0.3 OR Building Coverage <10% Attachment 1-40 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 25 SHORT-TERM LAND SUPPLY This section evaluates the short-term supply of land in the Springfield portion of the Metropolitan UGB. It begins with an overview of the policy context that requires this analysis, and then evaluates the short-term land supply. POLICY CONTEXT The Goal 9 Administrative Rule (OAR 660-009) includes provisions that require certain cities to ensure an adequate short-term supply of industrial and other employment lands. OAR 660-009-005(10) defines short term supply as follows: “…means suitable land that is ready for construction within one year of an application for a building permit or request for service extension. Engineering feasibility is sufficient to qualify land for the short-term supply of land. Funding availability is not required. "Competitive Short-term Supply" means the short-term supply of land provides a range of site sizes and locations to accommodate the market needs of a variety of industrial and other employment uses.” The Goal 9 rule also requires cities in a Metropolitan Planning Organization (MPO, which includes Springfield) to make a commitment to provide a competitive short-term supply of land and establishes targets for the short-term supply of land. Specifically, OAR 660-009-0020(1)(b) states: “Cities and counties within a Metropolitan Planning Organization must adopt a policy stating that a competitive short-term supply of land as a community economic development objective for the industrial and other employment uses selected through the economic opportunities analysis pursuant to OAR 660-009-0015.” The rule goes on to clarify short-term land supply targets for cities in an MPO (OAR 660-009-0025): (3) Short-Term Supply of Land. Plans for cities and counties within a Metropolitan Planning Organization or cities and counties that adopt policies relating to the short-term supply of land must designate suitable land to respond to economic development opportunities as they arise. Cities and counties may maintain the short-term supply of land according to the strategies adopted pursuant to OAR 660-009-0020(2). (a) Except as provided for in subsections (b) and (c), cities and counties subject to this section must provide at least 25 percent of Attachment 1-41 Page 26 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis the total land supply within the urban growth boundary designated for industrial and other employment uses as short- term supply. (b) Affected cities and counties that are unable to achieve the target in subsection (a) above may set an alternative target based on their economic opportunities analysis. (c) A planning area with 10 percent or more of the total land supply enrolled in Oregon's industrial site certification program pursuant to ORS 284.565 satisfies the requirements of this section. In summary, the rule requires Springfield to assess the short-term supply of land based on the criteria that land can be ready for construction within one year. The determination is based on “engineering feasibility.” ANALYSIS OF SHORT-TERM SUPPLY OF LAND The short-term supply analysis includes all lands within the Springfield portion of the Metropolitan UGB. To analyze the short term supply of land available for industrial and other employment uses, ECO worked closely with staff from the Springfield Public Works and Development Services Departments. A number of service issues were identified through this process that affects many different sites within the city. Identified deficiencies spanned the range of services, including water, wastewater, stormwater and transportation. Despite the issues staff identified, all areas within the Springfield UGB can be considered to technically meet the Goal 9 Rule criteria of “engineering feasibility.” Staff identified few areas where it was not possible to extend services within one year—provided that funding is available. Funding is a much broader and more complicated issue, but falls outside of the Goal 9 rule as written. The analysis did identify the Jasper-Natron area as unlikely to meet the short-term supply criteria. This is due to a combination of wetlands that make drainage an issue as well as the distance from existing water and sewer trunk lines (more than one mile from the nearest 18” sewer line to the north end of the site). Table 2-11 summarizes the number of vacant and potentially redevelopable acres in the short-term land supply. The results indicate that 91% of the vacant commercial and industrial land is considered available as short-term supply, and 85% of land with redevelopment potential is available as short-term supply. Buildable land in the Jasper- Natron area is not considered part of the short-term land supply. The Attachment 1-42 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 27 Jasper-Natron area is the only area of the city with employment lands that are not considered part of the short term supply. Table 2-11. Short-term land supply Source: City of Springfield GIS data; analysis by ECONorthwest Note: Acres may not sum to tenths due to rounding errors. Category/Plan Designation Buildable Acres Acres in Short-Term Supply Percent in Short Term Supply Vacant Commercial 54.1 45.5 84% Industrial 254.8 231.5 91% Mixed Use 45.6 45.6 100% Subtotal 354.5 322.7 91% Potentially Redevelopable Commercial 80.7 80.7 100% Industrial 412.2 325.6 79% Mixed Use 87.9 87.9 100% Subtotal 580.9 494.2 85% Attachment 1-43 Attachment 1-44 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 29 Economic Trends and Factors Affecting Future Economic Chapter 3 Growth in Springfield Springfield exists as part of the larger economy of the southern Willamette Valley and is strongly influenced by regional economic conditions. For many factors, such as labor, Springfield does not differ significantly from the broader region. For other factors, such as income, it does. Thus, Springfield benefits from being a part of the larger regional economy and plays a specific role in the regional economy. This chapter summarizes national, state, county, and local trends and other factors affecting economic growth in Springfield. Each heading in this chapter represents a key trend or economic factor that will affect Springfield’s economy and economic development potential. A more detailed analysis of economic trends and factors affecting Springfield’s future economic growth is presented in Appendices A and B. AVAILABILITY OF LABOR The availability of trained workers in Springfield will impact development of Springfield’s economy over the planning period. Based on the analysis in this section, the key trends that will affect the workforce in Springfield over the next 20-years include Springfield’s growing population, aging population, relatively low income, and commuting trends. GROWING POPULATION Population growth in Oregon tends to follow economic cycles. Historically, Oregon’s economy is more cyclical than the nation’s, growing faster than the national economy during expansions, and contracting more rapidly than the nation during recessions. Table 3-1 shows population growth in the U.S., Oregon, the Willamette Valley, Lane County, Eugene, and Springfield for the 1990 to 2007 period. Lane County grew slower than the State average between 1990 and 2007, growing at 1.1% annually and adding more than 60,000 people. More than 60% of the County’s population lived in the Eugene-Springfield area in 2007, with about 17% of the County’s population in the Springfield city limits. Springfield’s population grew faster than the County average, at 1.5% annually, adding 12,637 residents over the seventeen-year period. Attachment 1-45 Page 30 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table 3-1. Population in the U.S., Oregon, the Willamette Valley, Lane County, Springfield, and Eugene, 1990-2007 Source: U.S. Census, the Population Research Center at Portland State University. Notes: Benton, Clackamas, Lane, Linn, Marion, Multnomah, Polk, Washington, and Yamhill Counties represent the Willamette Valley Region. Figures for Springfield and Eugene are for areas inside their respective city limits. Migration is the largest component of population growth in Oregon. Between 1990 and 2007, in-migration accounted for 70% of Oregon’s population growth. Over the same period, in-migration accounted for 74% of population growth in Lane County, adding nearly 44,500 residents over the seventeen-year period. AGING POPULATION The number of people age 65 and older in the U. S. is expected to double by 2050, while the number of people under age 65 will only grow by 12%. The economic effects of this demographic change include a slowing of the growth of the labor force, need for workers to replace retirees, aging of the workforce for seniors that continue working after age 65, an increase in the demand for healthcare services, and an increase in the percent of the federal budget dedicated to Social Security and Medicare.9 The average age of Springfield residents is increasing. According to the US Census, Springfield’s average age was 32 in 2000, 30 in 1990, and 26 in 1980. Table 3-2 shows the change in age distribution for Springfield between 2000 and 2008. The age group that increased the most was people aged 45 to 64, which grew by 2,540 people (24%). This age group’s proportion of the total population increased from 20% to 23% during this time period. The largest percentage decrease was in people aged 18 to 24, which shrunk by 913 people (16%). 9 The Board of Trustees, Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, 2008, The 2008 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, April 10, 2008. The Budget and Economic Outlook: Fiscal Years 2007 to 2016, January; and Congressional Budget Office, 2005, The Long-Term Budget Outlook, December. Area 1990 2000 2007 Number Percent AAGR U.S.248,709,873 281,421,906 301,621,157 52,911,284 21% 1.1% Oregon 2,842,321 3,421,399 3,745,455 903,134 32% 1.6% Willamette Valley 1,962,816 2,380,606 2,602,790 639,974 33% 1.7% Lane County 282,912 322,959 343,140 60,228 21% 1.1% Springfield 44,683 52,864 57,320 12,637 28% 1.5% Eugene 112,669 137,893 153,690 41,021 36% 1.8% Change 1990 to 2007Population Attachment 1-46 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 31 Table 3-2. Change in age distribution, Springfield, 2000-2008 Source: U.S. Census 2000 and Claritas 2008 Note: Percent change over the 2000 to 2008 period is based on the growth in the age group divided by the number of people in the age group in 2000. For example, people 5 to 17 years old had a 4% percent change, which was calculated using the following calculation: 408/10,069 = 4%. Note: Share refers to the change in the percent of an age group between 2000 and 2008. For example, the share of people 18 to 24 years old decreased from 11% to 9%, a decrease of 2.3%. Note: Percentages may not add to 100% as a result of rounding errors. Springfield’s population was younger than the County or State averages in 2008. Figure 3-1 shows the age structure for Oregon, Lane County, Eugene, and Springfield in 2008. Springfield had a greater proportion of its population under 44 years of age (66%) than Eugene (62%), Lane County (58%), or Oregon (60%). Springfield also had a smaller share of population aged 55 and older, 21% of Springfield’s population, compared to 24% in Eugene, 27% in the County, 26% in the State. Age Group Number Percent Number Percent Number Percent Share Under 5 4,327 8% 4,121 7% -206 -5% -0.8% 5-17 10,069 19% 10,477 19% 408 4% -0.3% 18-24 5,890 11% 4,977 9% -913 -16% -2.3% 25-44 16,609 31% 17,372 31% 763 5% -0.4% 45-64 10,546 20% 13,086 23% 2,540 24% 3.4% 65 and over 5,423 10% 5,983 11% 560 10% 0.4% Total 52,864 100% 56,016 100% 3,152 6% 0.0% 2000 2008 Change 2000 to 2008 Attachment 1-47 Page 32 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Figure 3-1. Population by age, Oregon, Lane County, Eugene, and Springfield, 2008 Source: Claritas 2008, percentages calculated by ECONorthwest. INCOME Over the last twenty-four years, income in Oregon has been below national averages and income in Lane County has been below state averages. There are four basic reasons that income has been lower in Oregon and Lane County than in the U.S.: (1) wages for similar jobs are lower; (2) the occupational mix of employment is weighted towards lower paying occupations; (3) a higher proportion of the population has transfer payments (e.g. social security payments for retirees), which are typically lower than earnings; and (4) lower labor force participation among working age residents. To a certain degree, these factors are all true for Oregon and Lane County. The combination of these factors results in lower income for Oregon and Lane County. In addition, wages in Lane County and Oregon tend to be more volatile than the national average. The major reason for this volatility is that the relative lack of diversity in the State and County economy. Wages in Oregon and Lane County are impacted more than the national average by downturns in either the national economy or in industries in Oregon that 0%5%10% 15% 20% Under 10 10-17 18-24 25-34 35-44 45-54 55-64 65 and over AgePercent of Population Oregon Lane County Springfield Eugene Attachment 1-48 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 33 are dependent on natural resources (e.g., timber and wood processing or R.V. manufacturing). Lane County’s median household income in 2006 was $42,127, compared with $46,230 for Oregon and the national average of $48,451. Figure 3-2 shows the distribution of household income in Oregon, Lane County, Eugene, and Springfield in 2008. Figure 3-2 shows that a larger share of households in Springfield (32%) had an income of $25,000 or less, compared to Lane County (27%) or the State (23%). Springfield also has a lower share of households with income above $75,000 (17%), compared to Eugene (23%), the County (23%), or the State (27%). Figure 3-2. Distribution of household income of U.S., Oregon, and Lane County, 2008 Source: Claritas 2008 The low average income in Lane County and Springfield, relative to Oregon and the U.S., make Springfield attractive to some firms considering moving within the U.S. Firms continue to outsource back- office functions, such as call centers or administrative functions, within the U.S. Lane County’s relatively low labor costs and the availability of trained workers make Lane County attractive to firms considering relocating back-office functions. 0% 5% 10% 15% 20% 25% 30% 35% Less than $25,000 $25,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $150,000 Greater than $150,000 Household IncomePercent of Households Oregon Lane County Springfield Eugene Attachment 1-49 Page 34 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis EDUCATIONAL ATTAINMENT The availability of trained, educated workers affects the quality of labor in a community. Educational attainment is an important labor force factor because firms need to be able to find educated workers. In 2007, 26% of Springfield’s residents had an associate’s degree or higher, compared to the County average of 37% and Eugene’s average of 47% of residents with an associate’s degree or higher. Firms locating in Springfield will be able to attract employees from within Springfield and across the Eugene- Springfield region. WORKFORCE PARTICIPATION The current labor force participation rate is an important consideration in the availability of labor. The labor force in any market consists of the adult population (16 and over) who are working or actively seeking work. The labor force includes both the employed and unemployed. Children, retirees, students, and people who are not actively seeking work are not considered part of the labor force. In 2007, Springfield’s labor participation rate was 67% of their over-16 population of over 43,000. Of their 67% in the labor force, 10% were unemployed. In comparison, Lane County had 63% labor force participation, 8% of whom were unemployed. Labor force participation rates have dropped by about 1% since 2000, when Springfield’s labor participation rate was 68%, compared to the State average of 64%. COMMUTING PATTERNS Commuting plays an important role in Springfield’s economy. Springfield residents generally have a shorter commute than residents of Lane County or Oregon. Eighty percent of Springfield residents commute 29 minutes or less, compared to 77% of Lane County residents and 69% of Oregonians. Residents of Springfield are less likely to have a long commute, with 7% of Springfield’s residents commuting 45 minutes or more, compared to 10% of Oregonians. The majority of Springfield’s workforce (79%) lives in Lane County, with 29% in Springfield and 23% in Eugene. The majority of Springfield residents (81%) work in Lane County, with 25% working in Springfield and 40% working in Eugene. The implication of this data is that most people living or working in Springfield commute within the Eugene-Springfield area. This commuting pattern gives Springfield firms access to the workforce within the Eugene- Springfield region. Even though commutes in Springfield are generally Attachment 1-50 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 35 shorter than the State average, these commuting patterns create demand for automotive and other forms of transportation, both within Springfield and on roads throughout the Eugene-Springfield region. Increasing energy prices may impact commuting patterns within the Eugene-Springfield area. The impact is most likely to be greatest for residents living in the smaller cities around the Eugene-Springfield area (e.g., Veneta or Oakridge) because the commute to Springfield is longer from these outlying cities. Willingness to commute by most workers living and working within Eugene and Springfield is likely to have relatively little impact from fuel prices, unless prices increase dramatically. CHANGES IN EMPLOYMENT The economy of the nation changed in the 1980 to 2006 period. These changes affected the composition of Oregon’s economy, including Lane County and Springfield. The most important shift during this period at the national-level was the shift in employment from a focus on manufacturing to services. The most important shift in Oregon, including Lane County and Springfield, has been the shift from a timber-based economy to a more diverse economy, with the greatest employment in services. The most important trends and changes in employment for Springfield over the next 20-years are: shifts in employment, growing importance of health care, continued importance of manufacturing, and outlook for growth in Springfield. SHIFTS IN EMPLOYMENT Over the past few decades, employment in the U.S. has shifted from manufacturing and resource-intensive industries to service-oriented sectors of the economy. Increased worker productivity and the international outsourcing of routine tasks have lead to declines in employment in the major goods-producing industries. In the 1970s Oregon started to transition away from reliance on traditional resource-extraction industries. An important indicator of this transition is the shift within Oregon’s manufacturing sector, with a decline in the level of employment in the Lumber & Wood Products industry10 and concurrent growth of employment in high-technology manufacturing industries (Industrial Machinery, Electronic Equipment, and Instruments11). 10 Lumber and Wood Products manufacturing is in Standard Industrial Classification (SIC) 24 11 SIC 35, 36, 38 Attachment 1-51 Page 36 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis As Oregon has transitioned away from natural resource-based industries, the composition of Oregon’s employment has shifted from natural resource based manufacturing and other industries to service industries. The share of Oregon’s total employment in Service industries increased from its 1970s average of 19% to 30% in 2000, while employment in Manufacturing declined from an average of 18% of total employment in the 1970s to an average of 12% in 2000. The changes in employment in Lane County have followed similar trends as changes in national and state employment. Between 1980 and 2006, Lane County added more than 53,000 jobs. The sectors with the greatest change in share of employment were Services and Retail Trade, adding more than 38,500 or 73% of new jobs. Over the 26-year period, manufacturing added more than 4,000 jobs (8% of new jobs), with the greatest growth in: Transportation Equipment manufacturing (R.V. manufacturing), Computer and Electronics manufacturing, and Machinery manufacturing. Some industries in the region’s employment base have volatile employment cycles. These industries typically have boom and bust cycles, which result cycles of hiring and layoffs. The lumber and wood products industry is tied to national housing market cycles, with decreased productivity and employment in slow housing markets. The RV manufacturing industry is tied to broader national economic trends and energy price changes. Finally, the region’s high-tech companies are subject to market trends in the high-tech industry, including changes in production methods and consumer purchasing patterns. Two major high- tech firms, Hynix and Sony, located in the Eugene-Springfield region and closed their production facilities between the mid-1990’s and 2008. The average pay per employee in Lane County in 2006 was $33,240. The sectors with above average pay and high employment were: Construction, Manufacturing, Government, and Health and Social Services. The sectors with below average pay and high employment were: Retail, Accommodations and Food Services, and Administration and Support and Waste Management. In 2006, Springfield had 27,310 jobs at 1,819 establishments, with an average firm size of 15 employees. The sectors with the greatest employees were: Retail (13%), Government (13%), Health Care and Social Assistance (11%), and Manufacturing (10%). These sectors accounted for 17,863 or 65% of Springfield’s jobs. Attachment 1-52 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 37 OUTLOOK FOR GROWTH IN SPRINGFIELD The State forecasts that employment will continue growing in Lane County at 1.4% average annual growth, compared with the State average of 1.3% average annual growth. The sectors that will lead employment growth in Lane County for the ten-year period are: Health Care & Social Assistance (adding 5,600 jobs), Government (adding 3,600 jobs), Professional and Business Services (adding 3,000 jobs), Leisure & Hospitality (adding 2,800 jobs), and Retail Trade (adding 2,400 jobs). Together, these sectors are expected to add 17,400 new jobs or 76% of employment growth in Lane County. Springfield has a high concentration of employment in Health Care & Social Assistance, especially with the relocation of PeaceHealth’s regional hospital to RiverBend. Springfield’s concentration of employment in health care may further increase based on where McKenzie-Willamette Medical Center relocates to and the size of the new hospital. One way to determine opportunities for economic development is to determine the sectors with the greatest expected growth in the region (based on the Oregon Employment Department’s forecast for employment growth in Lane County between 2006 and 2016) and the greatest concentration of existing employment in the community (based on a comparison of employment data in Springfield and the State in 2006). Sectors with high employment concentration in Springfield and high growth forecasts are the industry’s most likely to grow. These sectors in Springfield are: Health and Social Assistance; Administrative and Support and Waste Management Services; Construction; and Accommodations and Food Services. Springfield may have opportunities for growth in other sectors that the State forecasts will have high growth. Springfield, however, does not currently have high concentrations in some of these sectors: Arts, Entertainment, and Recreation; Management of Companies and Enterprises; Professional, Scientific, and Technical Services; and Private Educational Services. It is unclear what long-term impact rising fuel and transportation costs will have on Oregon’s economy, including Springfield. Globalization and outsourcing of jobs, especially manufacturing jobs, has occurred since the 1980’s, changing the state’s economy. Globalization depends, in part, on inexpensive transportation of materials and manufactured goods. Businesses have relocated from areas with lower labor costs, in part, because transportation costs were low. Attachment 1-53 Page 38 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Increases in fuel prices have resulted in higher transportation costs, decreasing the benefits of lower wages. It is possible that, if fuel and transportation costs remain high and/or increase, companies may move to be closer to suppliers or consumers. This effect occurs incrementally over time and it is difficult to measure the impact in the short-term. If fuel prices and transportation costs decrease over the planning period, businesses may not make the decision to relocate (based on transportation costs) because the benefits of being closer to suppliers and markets may not exceed the costs of relocation. REGIONAL BUSINESS ACTIVITY GROWING IMPORTANCE OF HEALTHCARE PeaceHealth has recently relocated its main hospital to the Gateway area in Springfield. The RiverBend campus will have 2,500 PeaceHealth employees by the end of 2008, in occupations including: physicians, nurses, medical technicians, other medical staff, environmental services staff, and food services staff. PeaceHealth started relocating administrative and other staff to the RiverBend Annex in 2006 (located in the former Sony disc manufacturing building), which has 700 employees. The RiverBend campus will attract additional firms. For example, Oregon Medical Labs, Oregon Imaging Center, and the Northwest Specialty Clinics will have approximately 350 staff and physicians at the RiverBend campus. The RiverBend Pavilion will have about 300 employees, at the Oregon Medical Group, Oregon Imaging, and other medical businesses. Employment in health care may also increase in Springfield, depending on where McKenzie-Willamette Medical Center locates its new facility. If the new facility is located in Springfield and if the facility is bigger and employs more people than the existing hospital, Springfield will have another major healthcare center as well as more healthcare employment. CONTINUED IMPORTANCE OF MANUFACTURING Manufacturing continues to be important to the economy in Springfield and in Lane County. Manufacturing accounted for 14% of employment (more than 20,000 jobs) in Lane County and 10% of employment (more than 2,700 jobs) in Springfield in 2006. 12 Manufacturing industries continue to offer jobs with above-average wages, making these jobs more desirable. 12 Oregon Employment Department Attachment 1-54 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 39 Manufacturing grew slowly in Lane County between 1980 and 2006, at an average annual rate of 0.3%, adding more than 4,000 jobs. The State forecasts continued growth in manufacturing at the same rate over the 2006 to 2016 period. Manufacturing is a traded sector industry, which brings revenue into Oregon and Lane County from outside the State. The following manufacturing industries accounted for two-thirds ($11 billion) of revenue from exports in Oregon in 2007: Computer & Electronic Production, Transportation Equipment, Machinery Manufacturers, Chemical Manufacture, and Primary Metal Manufacturers.13 These industries are all present in Lane County, accounting for 44% of manufacturing employment in the County. Continuing changes in the economy may impact manufacturing in Lane County. For example, high energy prices may have been a factor in the decrease of RV manufacturing in Lane County, which has resulted in the layoff of employees beginning in 2006. In addition, the economic downturn and consolidation of the paper manufacturing industry may result in layoffs in firms that manufacture wood products and paper. Although much of this employment is located outside of Springfield, it affects residents of Springfield, either directly through job layoffs or indirectly through decreases in economic activity. TOURISM IN LANE COUNTY Tourism brings economic activity into Lane County from outside sources. Tourism expenditures in Lane County in 2006 grew 7.5%, to $553 million, exceeding the statewide tourism growth rate for the year. Tourism accounts for about 7,500 jobs in Lane County. A major source of tourism spending is overnight accommodations. In 2008, the Eugene-Springfield Region had 3,118 total rooms. Occupancy rates varied from 59% in fiscal year 2002 and 2003 to 72% in fiscal year 2006. Springfield levies a 9.5% transient lodging tax on overnight accommodations. Between 2000 and 2008, Springfield’s lodging tax revenue varied from $1.2 million in fiscal year 2004 to $1.6 million in fiscal year 2007. Springfield’s transient lodging tax revenues accounted for about one-quarter of total County lodging tax revenues. 13 “Economic Data Packet, Mary 2008,” Oregon Economic And Community Development Department Attachment 1-55 Page 40 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis SIGNIFICANCE OF AGRICULTURE IN LANE COUNTY Agriculture continues to be important in Lane County’s economy. In 2002, Lane County had approximately $88 million in total gross sales from agriculture. The top five agricultural products in Lane County in 2002 were: Nursery and greenhouse ($21 million); milk and dairy ($10.3 million): cattle and calves ($7.6 million), fruits, tree nuts, and berries ($6.7 million); and vegetables, melons, potatoes, and sweet potatoes ($5.6 million). While agriculture is an important source of economic activity in Lane County, Springfield has relatively little agricultural employment within the UGB. In 2006, about 1% of Springfield’s covered employment (282 employees) were employed in the Agriculture, Forestry, Fishing, and Mining sectors. About half of these jobs (136 employees) were in Forestry and Logging. Consistent with statewide land use policy, land within the Springfield UGB is committed for future urban uses, rather than agricultural uses. SPRINGFIELD’S COMPARATIVE ADVANTAGES Economic development opportunities in Springfield will be affected by local conditions as well as the national and state economic conditions addressed above and described in Appendix A. Factors affecting future economic development in the Springfield include its location, availability of transportation facilities and other public facilities, quality and availability of labor, and quality of life. Economic conditions in Springfield relative to these conditions in other portions of the Lane County and southern Oregon form Springfield’s comparative advantage for economic development. Springfield’s comparative advantages have implications for the types of firms most likely to locate and expand in Springfield. There is little that Springfield can do to influence national and state conditions that affect economic development. Springfield can influence local factors that affect economic development. Springfield’s primary comparative advantages are its location on I-5, proximity to Eugene, access to skilled labor and cost of labor, and high quality of life. These factors make Springfield attractive to residents and businesses that want a high quality of life where they live and work. The local factors that form Springfield’s comparative advantage are summarized below and described in detail in Appendix B. • Location. Springfield is located in the Southern Willamette Valley, next to Eugene, between the Willamette River (to the Attachment 1-56 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 41 south) and McKenzie River (to the north). Interstate 5 runs to the west of Springfield and Highway 126 runs east-west through Springfield. Springfield’s location, access to I-5 and Highway 126, and proximity to Eugene are primary comparative advantages for economic development in Springfield. These factors make Springfield attractive to businesses, especially those wanting to locate in the Willamette Valley. • Buying Power of Markets. The buying power of Springfield and the Eugene-Springfield area forms part of Springfield’s comparative advantage by providing a market for goods and services. According to estimates on household spending by Claritas, households in Springfield are expected to spend about $937 million in 2008, about 14% of total household expenditures in the Eugene-Springfield Region. Springfield households spend an average of $42,700 on commonly purchased items, not including housing, Springfield’s households spent less than the regional and nation averages, with about 91% of the $47,000 average expenditures for all households in the Eugene- Springfield MSA and 84% of national average household expenditures (Claritas, 2008). The buying power of households in the Eugene-Springfield region provides Springfield with a comparative advantage. Access to households in the Eugene-Springfield Region provides businesses in Springfield with greater sales potential than other, smaller cities in the Southern Willamette Valley. As the population in Springfield (and the Eugene-Springfield region) grows, Springfield will need to provide more land for firms that provide services to residents and businesses. The majority of this land will be in areas of growth, such as in the Mohawk area. • Transportation. Businesses and residents in Springfield have access to a variety of modes of transportation: automotive (Interstate 5, multiple State highways, and local roads); rail (Union Pacific and Amtrak); transit (LTD); and air (Eugene Airport). Springfield has excellent automotive access for commuting and freight movement. Springfield is located along Interstate 5, the primary north-south transportation corridor on the West Coast, linking Springfield to domestic markets in the United States and international markets visa West Coast ports. Springfield has developed along Highway 126, Highway 126 is Attachment 1-57 Page 42 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis the primary east-west highway in Lane County, running from Florence to Redmond. Other transportation options in Springfield include: multiple Union Pacific rail lines provide freight service; transit service from the Lane Transit District provides bus service within Springfield and connects Springfield with Eugene; and the Eugene Airport provides both passenger and freight service. Springfield’s access to multiple modes of transportation provides Springfield with advantages in attracting businesses that need easy access to I-5 for automotive or some types of freight movement. Springfield may have disadvantages in attracting businesses that need large lots and easy access to I-5 (e.g., warehousing and transportation) because of the lack of buildable industrial land along I-5 near Highway interchanges. • Public Facilities and Services. Provision of public facilities and services can impact a firm’s decision on location within a region. Once a business has chosen to locate within a region, they consider the factors that local governments can most directly affect: tax rates, the cost and quality of public services, and regulatory policies. Springfield’s property tax rate ranges from $16.32 and $18.65 per $1,000 of assessed value, compared with a state average of $15.20. The property tax rate in Eugene is more variable than Springfield’s, ranging from $10.31 (possibly located in an area outside of Eugene’s city limits) to $24.68 per $1,000 of assessed value.14 Springfield’s property tax rates may provide the City with little comparative advantage in attracting businesses, relative to Eugene. The City has sufficient water to meet expected residential and employment needs. The local water provider, Springfield Utility Board (SUB), is not concerned about its ability to supply water to any type of industry, including water-intensive industries like food processing. SUB has lower water rates than the national average. The combination of available and lower cost water may be an advantage to attracting some types of businesses to Springfield. 14 Property tax rates for Springfield and Eugene are a composite of the rates for all properties with an address in Eugene or Springfield. It is almost certain that some of these properties is located outside of both the Eugene and Springfield urban growth boundaries and are subject to unincorporated Lane County tax rates. Attachment 1-58 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 43 Based on discussions with staff at SUB, Springfield expects to be able to meet demand for wastewater services resulting from expected growth. The City expects to provide service to 6,100 new equivalent dwelling units, which includes residences and businesses, over the next 20-years. • Public Policy. Public policy can impact the amount and type of economic growth in a community. The City can impact economic growth through its policies about the provision of land, redevelopment, and infill development. Success at attracting or retaining firms may depend on availability of attractive sites for development, especially large sites. For example, Springfield was attractive as a location of PeaceHealth’s new hospital because the City had a large, relatively flat site located relatively near to Interstate 5 and Beltline Highway. Springfield’s decisionmakers articulated their support for provision of employment land through the economic development strategy and in other policy choices. Objectives in the economic development strategy supporting the provision of employment land include objectives to: (1) provide employment land in a variety of locations, configurations, and site sizes for industrial and other employment uses, (2) provide an adequate competitive short-term supply of suitable land to respond to economic development opportunities as they arise, (3) reserve sites over 20-acres for special developments and industries that require large sites, and (4) provide adequate infrastructure to sites. The economic development strategy also includes objectives that support redevelopment of existing land within the UGB, especially in Downtown and in Glenwood, and infill development. In addition, the City is promoting redevelopment in Downtown through the creation of the Urban Renewal District in Downtown Springfield. • Labor Market. The availability of labor is critical for economic development. Availability of labor depends not only on the number of workers available, but the quality, skills, and experience of available workers as well. Commuting is common in Springfield. About 40%of the people who live in Springfield commute to Eugene for work. Less than one-third of Springfield’s workers live in Springfield. The Attachment 1-59 Page 44 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis implication of this workforce analysis is that, while only one- third of Springfield’s workforce lives within the City, Springfield are able to attract educated workers from most of Eugene and surrounding areas in Lane County. It does not appear that workforce will be a constraint on employment growth in Springfield. Springfield should be able to continue to draw on residents of Eugene for workers, even if energy prices continue to rise but Springfield’s ability to attract workers from outside of the Eugene-Springfield area may be negatively impacted by continued increases in energy prices. Opportunities for workforce training and post-secondary education for residents of the Eugene-Springfield area include: the University of Oregon, Lane Community College, Northwest Christian College, and Gutenberg College. Attachment 1-60 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 45 Land Demand and Chapter 4 Site Needs in Springfield OAR 660-009 requires cities to maintain a 20-year inventory of sites designated for employment. To provide for at least a 20-year supply of commercial and industrial sites consistent with local community development objectives, Springfield needs an estimate of the amount of commercial and industrial land that will be needed over the planning period. Demand for commercial and industrial land will be driven by the expansion and relocation of existing businesses and new businesses locating in Springfield. The level of this business expansion activity can be measured by employment growth in Springfield. POTENTIAL GROWTH INDUSTRIES An analysis of growth industries in Springfield should address two main questions: (1) Which industries are most likely to be attracted to the Eugene-Springfield area? and (2) Which industries best meet Springfield’s economic objectives? The types of industries that Springfield wants to attract have the following attributes: high-wage, stable jobs with benefits; jobs requiring skilled and unskilled labor; employers in a range of industries that will contribute to a diverse economy; and industries that are compatible with Springfield’s community values. KEY TRENDS AFFECTING EMPLOYMENT GROWTH Previous chapters reviewed historical growth trends by industry in the Eugene-Springfield Region and Lane County since 1980 and employment in Springfield. A review of key historical trends in employment in the Eugene-Springfield Region can help identify potential growth industries in Springfield. In other words, economic opportunities in Springfield are a function of regional historical trends and future economic shifts. While nearly all sectors of the economy in the Region experienced growth over this period, some sectors grew faster than others, resulting in a shift in the distribution of employment by sector. Key historical trends include in the 1980 to 2007 period include: • A substantial increase in the share of employment in Services, which increased from 23% to 42% of covered employment in Lane County. Attachment 1-61 Page 46 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis • A decrease in the share of employment in Retail Trade, from 21% to 13%. The number of jobs in retail did not decrease substantially over the 27-year period ( a loss of nearly 550 retail jobs) but growth in retail jobs lagged behind growth in other sectors, especially service sectors. • A decline in the share of employment in Manufacturing, which fell from 20% to 13% of covered employment. • A decline in the share of employment in Government, which decreased from 20% to 16% of covered employment Together, these sectors represent about 84% of employment in the County. Other sectors of the County’s economy have a relatively stable and small share of the County’s employment. Historical employment trends show a substantial shift in the Region’s economy that mirrored shifts in the State and national economies, specifically the substantial growth in Services and decline of Manufacturing. While these trends are expected to continue into the future, future shifts are not expected to be as dramatic as those experienced over the past twenty years. There are several reasons for this expectation (e.g., that the future will be somewhat different that the past): • Growth in the Services sector has matured and should track more closely with overall employment and population growth rather than continuing to gain a substantial share of total employment. • The decline in Manufacturing was due, in part, to decreased timber harvests and the outsourcing of production to facilities in countries with lower costs. Timber harvests are expected to level off and increase in the future as commercial forests that were replanted since the 1970s grow to a harvestable size. While outsourcing will continue, much of what can be outsourced has already gone. Remaining Manufacturing firms are tied to their region to be near supplies or markets, or manufacture specialized goods were small production quantities, fast turn-around times, and the need for quality limit the ability to outsource. • The mix of Manufacturing jobs in the Eugene-Springfield Region changed over the past twenty years with declines in Wood Products and the growth of employment in Recreational Vehicle (RV) manufacturing, machinery manufacturing, metals manufacturing, and high-tech industries, such as Computer and Electronics Manufacturing. Attachment 1-62 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 47 BUSINESS CLUSTERS IN SPRINGFIELD One way to assess the types of businesses that are likely to have future growth in an area is to examine relative concentration and employment growth of existing businesses. This method of analysis can help determine relationships and linkages within in industries, also called industrial clusters. Sectors that are highly concentrated (meaning there are more than the “average” number of businesses in a sector in a given area) and have had high employment growth are likely to be successful industrial cluster. Sectors with either high concentration of businesses or high employment group may be part of an emerging cluster, with potential for future growth. The sectors with the most growth potential (identified in Chapter 3) are: Health and Social Assistance; Administrative and Support; Construction; and Accommodations and Food Services. Other sectors with growth opportunities are: Arts, Entertainment, and Recreation; Management of Companies and Enterprises; Professional, Scientific, and Technical Services; and Private Educational Services. Table 4-1 shows existing and potential business clusters in Springfield. The clusters identified in Table 4-1 are based on employment trends, Springfield’s comparative advantages, the OED’s employment forecast for Lane County, the types of firms that have considered locating in Springfield, and analysis of existing and developing business clusters in Springfield and Lane County. Table 4-1. Existing and potential business clusters in Springfield Cluster Employment Potential Secondary Employment Site Needs Medical Services Associated with RiverBend: 3,400 new jobs in 2008 Additional medical services Additional services Employment at a new McKenzie-Willamette Facility, if the Hospital opens a new facility in Springfield over the planning period Associated with RiverBend: Medical Services and Suppliers Research and Education Non-medical office space Services like retail, restaurants, financial services, etc. Small sites (2 acres or less) on the RiverBend Campus or in the Gateway area Small sites (2 acres or less) distributed in neighborhood or community commercial centers Attachment 1-63 Page 48 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Cluster Employment Potential Secondary Employment Site Needs Small Scale Manufacturing Growth potential depends on firms choosing to locate in Springfield. Types of firms include: • Organic food processing • Cottage industries such as jewelry, apparel, or personal care products • Plastics manufacturing Manufacturing of related or complementary products Additional small scale manufacturing Sites on industrial land, in business parks, or in commercial areas. Site sizes may range from less than 1 acre to 10 acres. Call Centers Growth potential depends on firms choosing to locate in Springfield. Eugene and Springfield have advantages for attracting call centers because of the pool of trained call center workers. Back-office functions for companies with call centers Services like retail, restaurants, financial services, etc. Space in commercial buildings Firms may need a range of site sizes, ranging from fewer than 5 acres to about 20 acres. Some firms may use existing office space. Back-Office Functions Growth potential depends on firms choosing to locate in Springfield. There is a lot of national competition for these functions. Related back-office functions (if a cluster grows) Services like retail, restaurants, financial services, etc. Space in commercial buildings Most firms are likely to need sites of 5 acres or smaller or use existing office space Tourism Growth potential depends on holding events in the Eugene-Springfield area that attract visitors. Growth may also depend on development of infrastructure to attract and service visitors, such as hotels or outdoor activities. Services like hotels, retail, restaurants, arts and entertainment, etc. Site needs range from sites of less than 1 acre in existing developments to larger sites (5 acres or more) for hotels High-tech Growth potential depends on firms growing locally or choosing to locate in Springfield. Types of firms include: • Software development • Computer electronics • Computer service providers • Data centers Service and materials providers Services like retail, restaurants, financial services, etc. Site needs range from sites of 1 acre or less in existing developments to large sites (50 acres or more) for large existing businesses or data centers. Wood Products Growth potential depends on the international demand for wood products. The existing wood products and paper manufacturing cluster may be diminishing. Services like retail, restaurants, financial services, etc. Site needs range from sites of 2 acres or less to industrial sites of 20 acres or more Attachment 1-64 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 49 Cluster Employment Potential Secondary Employment Site Needs Biotech Growth potential depends on firms choosing to locate in Springfield. There is a lot of national competition for these firms. Springfield has advantages in attracting these firms because of the University of Oregon’s Biotech Program, presence of Invitrogen, and national growth in the industry. Related biotech firms Suppliers or other specialized service providers Site needs range from sites 1 acre or less to large sites of 20 acres or more. TARGET INDUSTRIES The characteristics of Springfield will affect the types of businesses most likely to locate in Springfield. Springfield’s attributes that may attract firms are: the City’s proximity to I-5, high quality of life, proximity to the University of Oregon, the presence of the RiverBend campus, positive business climate, availability of skilled and semi-skilled labor, and proximity to indoor and outdoor recreational opportunities. The types of businesses that may be attractive to Springfield include: • Medical Services. The development of a medical cluster at RiverBend presents an opportunity to attract medical firms, medical research firms, and other professional services. PeaceHealth is in the process of attracting these firms, through development of a research-oriented relationship with OHSU and the University of Oregon. The possible siting of a new facility for McKenzie-Willamette Medical Center in Springfield presents additional opportunities for attracting medical services and employment in healthcare. • Services for seniors. Springfield’s growing population of retirees or near retirees, may attract or create demand for health services that provide services to older people, such as assisted living facilities or retirement centers. These facilities may prefer to locate in relatively close proximity to RiverBend. • Manufacturing. Springfield’s attributes may attract small scale manufacturing firms (e.g., firms with fewer than 50 employees). Springfield may also be attractive to large manufacturing firms, provided that land is available for development. Examples of manufacturing include medical equipment, high-tech electronics, Attachment 1-65 Page 50 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis recreational equipment, furniture manufacturing, specialty apparel, and other specialty manufacturing. • Call Centers. The existing call center cluster may attract call centers to Springfield. The potential for growth in call centers in the Eugene-Springfield area will be dependent of the availability of skilled labor. • Back-Office Functions. Springfield’s high quality of life and relatively low wages may attract back-office functions, such as the Levi Strauss financial center in Eugene. Back-office functions include administrative functions, such as accounting or information technology. The potential for growth in back-office functions may be limited by national competition for this type of employment. Springfield may be more successful at attracting back-office functions for firms that have a reason to locate in the Region, such as firms with corporate headquarters on the West Coast or firms that do a substantial amount of business in the Willamette Valley. • Tourism. Visitors may be attracted to Springfield to take advantage of recreational opportunities and other amenities. They may also be attracted as a result of regional events, such as the Olympic Track and Field trials, the Oregon Country Fair, or the University of Oregon Bach Festival. Industries that serve tourists, such as food services and accommodations, are likely to grow if tourism increases. • Specialty Food Processing. Springfield’s proximity to agricultural resources may make the City attractive to specialty food processing firms, such as those that specialize in organic or natural foods or wineries. • High-Tech. Springfield’s access to highly educated labor, access to comparatively inexpensive electricity, and high quality of life may make Springfield attractive to high-tech firms. The types of firms that may be attracted to Springfield range from high-tech manufacturing to data centers to software development. • Professional and Technical Services. Springfield’s attributes make it attractive to businesses that need access to educated workers and want a high quality of life. These types of businesses could include engineering, research, and other professional services that are attracted to high-quality settings. Attachment 1-66 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 51 Springfield’s reputation as a blue-collar community may present challenges in attracting these types of businesses. Recent trends and efforts by the City suggest the reputation as a blue-collar community is in the process of changing. The City can facilitate this change through building off of the medical cluster forming at RiverBend and through promoting Springfield as a good place to locate professional service firms. • Green businesses. There is no clear definition of what constitutes a green industry or business. In general, green businesses are those that produce products or services that improve or maintain environmental quality, as described in Appendix A. Opportunities for environmentally conscious businesses are growing. The types of green businesses that may choose to locate or expand in Springfield includes: green construction firms (e.g., firms that use LEED- certified building practices), organic food processing, sustainable logging and/or lumber products manufacturing, or alternative energy production (e.g., manufacturing solar panels or bio-fuels) • Corporate Headquarters. Springfield’s quality of life, location along I-5, and availability of educated workers may make Springfield attractive as a place to locate corporate headquarters. These same qualities, combined with the relatively low cost of semi-skilled labor and cluster of call centers, make Springfield attractive as a place to locate back-office functions, such as call centers. • Services for Residents. Population growth will drive development of retail and government services, especially education, in Springfield. • Government and Public Services. Springfield will continue to be the location for institutions such as: Springfield City Services, State services such as the Department of Motor Vehicles and Oregon Department of Transportation offices, the Springfield School District, and the Springfield Utility Board. EMPLOYMENT FORECAST To provide for an adequate supply of commercial and industrial sites consistent with plan policies, Springfield needs an estimate of the amount of commercial and industrial land that will be needed over the planning period. Goal 9 requires cities identify “the number of sites by type reasonably expected to be needed to accommodate the expected employment growth based on the site characteristics typical of expected Attachment 1-67 Page 52 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis uses.” The number of needed sites is dependent on the site requirements of employers. The estimate of land need is presented in the site needs analysis in the next section. Demand for commercial and industrial land will be driven by the expansion and relocation of existing businesses and new businesses locating in Springfield. The level of this business expansion activity can be measured by employment growth in Springfield. This section presents a projection of future employment levels in Springfield for the purpose of estimating demand for commercial and industrial land. Appendix C presents the process used to arrive at the employment forecast for Springfield. Table 4-2 shows that employment is forecast to grow by 13,440 employees (a 32% increase) between 2010 and 2030. Table 4-2. Employment growth in Springfield’s UGB, 2010–2040 Source: ECONorthwest Springfield is part of the regional economic center in the Eugene- Springfield region. The ratio of population to employment will decrease from 1.6 people per job to 1.5 people per job between 2008 and 2030. This change shows that employment will grow faster than population in Springfield, suggesting that some Springfield will continue to have employees who commute from Eugene or other cities in the region. Table 4-3 shows the forecast of employment growth by building type in Springfield’s UGB in 2030. In 2010, a total of about 60% of Springfield’s Year Total Employment 2008 41,133 2010 42,284 2030 55,724 2030 55,724 2031 56,498 2032 57,283 2033 58,079 2034 58,886 2035 59,704 2036 60,534 2037 61,375 2038 62,228 2039 63,093 2040 63,970 Change 2010 to 2030 Employees 13,440 Percent 32% AAGR 1.4% Attachment 1-68 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 53 employment is in office and other services’ building types. About 18% is in retail, 15% is in general industrial and 7% is in warehousing and distribution. Table 4-3. Forecast of employment growth in by building type, Springfield UGB, 2010-2030 Source: ECONorthwest Note: Green shading denotes an assumption by ECONorthwest Note: The forecast assumes that the share of employment in other services’ building types will increase by about 2.2% over the 20-year period. We expect that medical employment will grow faster than government employment, based on historical trends that show government accounting for a decreasing share of employment and the growing medical cluster in Springfield. The forecast in Table 4-3 assumes that Springfield will have growth in all categories of employment. It also assumes that the share of employment will increase in other services (2.2% increase in share) and office (1.3% increase in share). At the same time, the share of employment will decrease in general industrial (1.8% decrease in share), warehousing and distribution (1.0% decrease in share), and retail (0.7% decrease in share). The rationale supporting these assumptions is presented in Appendix C. SITE NEEDS OAR 660-009-0015(2) requires the EOA identify the number of sites, by type, reasonably expected to be needed for the 20-year planning period. Types of needed sites are based on the site characteristics typical of expected uses. The Goal 9 rule provides flexibility in how jurisdictions conduct and organize this analysis. For example, site types can be described by plan designation (i.e., heavy or light industrial), they can be by general size categories that are defined locally (i.e., small, medium, or large sites), or it can be industry or use-based (i.e., manufacturing sites or distribution sites). Firms wanting to expand or locate in Springfield will be looking for a variety of site and building characteristics, depending on the industry and specific circumstances. Previous research conducted by ECO has found that while there are always specific criteria that are industry-dependent Building Type Employment % of Total Employment % of Total Industrial Warehousing & Distribution 2,954 7.0% 3,343 6.0% 389 General Industrial 6,457 15.3% 7,523 13.5% 1,066 Commercial Office 12,561 29.7% 17,274 31.0% 4,713 Retail 7,709 18.2% 9,752 17.5% 2,043 Other Services 12,603 29.8% 17,832 32.0% 5,229 Total 42,284 100.0% 55,724 100.0% 13,440 2010 2030 Change 2010 to 2030 Attachment 1-69 Page 54 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis and specific firm, many firms share at least a few common site criteria. In general, all firms need sites that are relatively flat, free of natural or regulatory constraints on development, with good transportation access and adequate public services. The exact amount, quality, and relative importance of these factors vary among different types of firms. This section discusses the site requirements for firms in industries with growth potential in the Eugene-Springfield Region, as indicated by the Oregon Employment Department forecast (see Table A-12 in Appendix A for the regional forecast). Appendix C discusses the productive factors that affect business’ locational decisions and the implications of these factors for businesses that may locate in Springfield. The appendix also discusses the characteristics of sites needed to accommodate employment growth and Springfield’s ability to provide sites with these characteristics. LONG-TERM LAND AND SITE NEEDS Appendix C presents the process for converting between the employment forecast to site needs. Table 4-4 presents the estimate of needed sites by site size and type of building. The results show that Springfield needs approximately 371 sites. Most sites are small, 2-acres or less. Springfield needs approximately 8 sites larger than 20-acres. Table 4-4. Estimated needed sites by site size and building type, Springfield, 2010 to 2030 Source: ECONorthwest The identified site needs shown in Table 4-4 do not distinguish sites by comprehensive plan designation. It is reasonable to assume that industrial uses will primarily locate in industrial zones. Retail and service uses could locate in commercial zones, mixed use zones, and residential zones. SHORT-TERM SITE NEEDS Springfield has four large-scale development plans currently underway: RiverBend Node, Marcola Meadows Node, the Glenwood Riverfront Node and the Downtown District Node. RiverBend, Marcola Meadows Building Type Less than 1 1 to 2 2 to 5 5 to 20 20 to 50 Greater than 50 Total Sites Warehousing & Distribution 35 1 9 General Industrial 5 7 10 11 3 3 39 Office 100 20 20 5 1 146 Retail 70 15 10 4 99 Other Services 50 18 5 5 78 Total 225 60 48 30 5 3 371 Site Size (acres) Attachment 1-70 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 55 and Glenwood Riverfront District have approved master plans and are available for immediate development. In addition, the City is currently developing a Downtown District Plan and Implementation Strategy to facilitate and promote downtown redevelopment. • RiverBend Node. PeaceHealth’s main hospital at RiverBend opened in August 2008. The relocation or expansion of other medical firms to the RiverBend campus is underway. In addition to these uses, PeaceHealth plans further development of the RiverBend campus, which is about 72 acres in size. Other uses may include a mixture of residential development, office and commercial support services, retail, and educational and research functions to support collaborations with Oregon Health Services University and the University of Oregon. Studies for the RiverBend master plan indicated that there may be demand for additional office development (400,000-500,000 square feet) and commercial retail services (50,000 to 70,000 square feet). • Marcola Meadows Node. Marcola Meadows is a proposed mixed- use project located on a vacant 100-acre parcel in Springfield. The project is expected to include about 190 single unit detached homes, about 120 townhouses, about 120 homes in apartments, and 54 homes for senior living. The total proposed land requirement of the residential villages would be 39 acres. Marcola Meadows is also expected to have commercial development, anchored by a Lowe’s Home Improvement store, and including professional offices and retail. The commercial development will occupy about 44 acres, have more than 409,000 square feet of built space, and require more than 1,200 parking spaces. The remaining land in the development will be used for common open space and streets.15 • Glenwood Node. Glenwood currently has a mixture of residential, commercial, and industrial zoning, with areas that are underdeveloped or undeveloped. Glenwood’s current development pattern is: 83 acres of industrial land, 64 acres of retail, 66 acres of manufactured dwellings, 37 acres of single-family dwellings, and 167 acres of vacant land. Redevelopment of Glenwood is in the planning stages. The 48 acre Glenwood Riverfront Plan District is currently designated for 15 Marcola Meadows Pre Plan. Attachment 1-71 Page 56 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Mixed Use Nodal Development and is available for development. The City is currently updating the Glenwood Refinement Plan for the rest of Glenwood. Goals for redevelopment include developing residential, employment and mixed use areas, providing transition between residential and industrial areas, and capitalizing on Glenwood’s location between Eugene and Springfield and riverfront land.16 16 Glenwood Refinement Plan. November 1999. Attachment 1-72 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 57 Chapter 5 Land Capacity and Demand This chapter provides a brief summary of the implications of the economic opportunities needs analysis for the City of Springfield. This study looked at economic trends and land needs from a regional and local perspective. This chapter includes a general comparison of land supply and demand. The comparison of land capacity and demand is followed by a discussion of the key implications of the EOA for the City of Springfield. COMPARISON OF LAND CAPACITY AND DEMAND This section presents an analysis of land availability and capacity for employment uses in Springfield. Chapter 4 presents an analysis of potential growth industries in Springfield and the employment forecast for Springfield. Based on this analysis, Table 5-1 shows a comparison of land supply and need in terms of sites by site size. The results show that Springfield has a deficit of about 6 industrial sites and 44 commercial and mixed use sites. Table 5-1. Comparison of vacant land supply and site needs, industrial and other employment land, Springfield UGB, 2010-2010 Source: ECONorthwest. Converting from the site needs shown in Table 5-1 to an estimate of land needs requires making assumptions about average site sizes needed in Springfield. Table 5-2 shows average site for needed sites in Springfield. Less than 1 1 to 2 2 to 5 5 to 20 20 to 50 Greater than 50 Total Buildable Land Inventory Vacant Industrial 72 24 20 12 0 0 128 Commercial and Mixed Use 104 14 6 4 0 0 128 Redevelopable Industrial 122 28 31 5 1 0 187 Commercial and Mixed Use 305 20 15 0 0 0 340 Total Buildable Sites Industrial 194 52 51 23 1 0 321 Commercial and Mixed Use 409 34 21 4 0 0 468 Site Needs Needed sites Industrial 5 7 13 16 4 3 48 Commercial and Mixed Use 220 53 35 14 1 0 323 Surplus (deficit) of sites Industrial 189 45 38 7 (3) (3)273 Commercial and Mixed Use 189 (19) (14) (10) (1)0 145 Site Size (acres) Attachment 1-73 Page 58 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table 5-2. Average size of needed sites, Springfield UGB Source: ECONorthwest Table 5-3 shows sites needed (from Table 5-1) and land need (based on number of sites needed in Table 5-1 and average site size in Table 5-2). The results show that Springfield has a deficit in the current UGB of the following land types for the 2010 to 2030 period: • Industrial land. Springfield has a need for 450 acres of industrial land on six sites. Springfield has a need for three 50 acre sites, and need for three 100 acre sites. In the context of this study, industrial uses means any major employer that would be allowed in an industrial land designation (e.g., campus industrial, light-medium industrial, light-medium industrial mixed use, heavy industrial, or special heavy industrial). • Commercial sites. Springfield has a need for 261 acres of commercial land on 44 sites. Springfield’s commercial site needs range from sites 1 to 2 acres in size to one site that is 40 acres in size. Table 5-3. Comparison of employment land supply and site needs, Springfield UGB, 2010-2030 Source: ECONorthwest The summary of land needs in Table 5-3 shows Springfield’s land need for all sites of all sizes. One of the City’s economic development strategies is to encourage redevelopment, especially in Downtown and Glenwood. Table 5-1 shows that Springfield concludes that 187 industrial sites and 340 commercial and mixed use sites would redevelop to address land needs over the 20-year period. In addition to this assumption about redevelopment, Springfield concludes that all land needs on sites smaller than five acres would be accommodated through redevelopment. The City Less than 1 1 to 2 2 to 5 5 to 20 20 to 50 Greater than 50 Industrial 0.5 1.5 3.0 15.0 50.0 100.0 Commercial and Mixed Use 0.3 1.5 3.0 15.0 40.0 50.0 Site Size (acres) Less than 1 1 to 2 2 to 5 5 to 20 20 to 50 Greater than 50 Total Industrial Sites needed none none none none 3 3 6 Land need (acres)none none none none 150 300 450 Commercial and Mixed Use Sites needed none 19 14 10 1 0 44 Land need (acres)none 29 42 150 40 0 261 Total sites needed none 19 14 10 4 3 50 Total acres needed none 29 42 150 190 300 711 Site Size (acres) Attachment 1-74 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 59 had a deficit of 23 commercial and mixed use sites smaller than five acres, which would require 71 acres of land (Table 5-3). Table 5-4 shows Springfield’s employment land need, assuming that all site needs for sites smaller than five acres would be addressed through redevelopment. Springfield has the need for approximately six industrial sites on 450 acres and eleven commercial and mixed use sites on about 190 acres that cannot be accommodated within the existing UGB over the 2010 to 2030 period. Table 5-4. Employment site and land needs, Springfield UGB, 2010- 2030 Source: ECONorthwest The data in Table 5-3 address employment needs on vacant and partially vacant land. Some employment in Springfield will not require new land but will locate on land that is currently used. ECO assumed that 24% of employment (more than 3,200 new employees) would not require any vacant land. This would include employment that will locate in residential areas as well as employment that will locate on land that is already classified as developed because employment uses in some built spaces may intensify. In addition, Springfield identified economic development strategies of encouraging redevelopment in Downtown and Glenwood. ECO assumed that all commercial and mixed use land needs on sites smaller than five acres would be accommodated through commercial redevelopment. The City had a deficit of 33 commercial and mixed use sites smaller than five acres, which would require 71 acres of land (Table 5-3). Springfield assumes this need will be accommodated through redevelopment of existing commercial land. CHARACTERISTICS OF NEEDED SITES The Goal 9 Administrative Rule (OAR 660-009) requires that jurisdictions describe the characteristics of needed sites (OAR 660-009-0025(1)). The Less than 5 5 to 20 20 to 50 Greater than 50 Total Industrial Sites needed none none 3 3 6 Land need (acres)none none 150 300 450 Commercial and Mixed Use Sites needed none 10 1 none 11 Land need (acres)none 150 40 none 190 Total sites needed none 10 4 3 17 Total acres needed none 150 190 300 640 Site Size (acres) Attachment 1-75 Page 60 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Administrative Rule defines site characteristics as follows in OAR 660-009- 0005(11): (11) "Site Characteristics" means the attributes of a site necessary for a particular industrial or other employment use to operate. Site characteristics include, but are not limited to, a minimum acreage or site configuration including shape and topography, visibility, specific types or levels of public facilities, services or energy infrastructure, or proximity to a particular transportation or freight facility such as rail, marine ports and airports, multimodal freight or transshipment facilities, and major transportation routes. The site needs analysis in Chapter 4 identified site needs in five types of buildings: warehousing and distribution, general industrial, office, retail, and other services. The characteristics of needed sites for each of these building types are described below. All sites will need access to electricity, phone, and high-speed telecommunications. WAREHOUSING AND DISTRIBUTION The site needs analysis (Table 4-4) identified a need for six sites larger than five acres for warehousing and distribution. Based on the analysis of land supply and site needs in Table 5-1, Springfield will need one site for warehousing and distribution over the 2010-2030 period.17 • Site size. Springfield will need one site between 35 and 50 acres. • Street access. Warehousing and distribution sites should be located on an arterial street within ½ mile of an Interstate 5 interchange. The freight traffic from the site should not be routed through residential neighborhoods. • Topography. Warehousing and distribution sites should be relatively flat with slopes of 5% or less. • Access to services. City services should be accessible to the site, including sanitary sewer, and municipal water. • Land ownership. Sites with a maximum of two owners to minimize the cost and uncertainties of land assembly. • Surrounding land uses. The warehousing and distribution site should be abut compatible uses, such as industrial, business park or commercial uses. The site should not abut urban residential, school or park uses. 17 Table 5-1 shows that Springfield will need a total of six industrial sites larger than 20 acres over the 2010-2030 period. One of these sites will be for warehousing and distribution and five will be for general industrial uses. Attachment 1-76 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 61 GENERAL INDUSTRIAL The site needs analysis (Table 4-4) identified a need for 17 sites larger than five acres for general industrial uses. Based on the analysis of land supply and site needs in Table 5-1, Springfield will need five sites 20 acres and larger for general industrial over the 2010-2030 period.18 Industrial sites may be used for one firm or may be used for an industrial park, to provide space for multiple, smaller firms. • Site size. Springfield will need five sites larger than 20 acres for general industrial use. o Springfield will need two sites of approximately 35 to 50 acres each. o Springfield will need two sites in the 80-120 acre range and one sites in the 150-250 acre range. • Street access. Industrial sites should be located on an arterial street that provides access to an Interstate 5 or highway 126 interchange. Sites should be no more than one mile from an interchange. The freight traffic from industrial sites should not be routed through residential neighborhoods. • Rail access. Some industrial uses may benefit from rail access, especially businesses that ship bulky, inexpensive items over long distances. Access to a rail line, or the possibility of developing a rail spur, is an advantage for some businesses. • Topography. Industrial sites should be relatively flat with slopes of not more than 10% slope. • Access to services. City services should be accessible to the site, including sanitary sewer, and municipal water during the 20-year planning period. • Land ownership. Sites with a single owner are strongly preferred, to reduce the cost of land assembly. • Surrounding land uses. General industrial sites should abut compatible uses, such as other industrial uses, warehousing and distribution, business parks or commercial uses. The site should not abut urban residential, school or park uses. 18 Table 5-1 shows that Springfield will need a total of six industrial sites larger than 20 acres over the 2010-2030 period. One of these sites will be for warehousing and distribution and five will be for general industrial uses. Attachment 1-77 Page 62 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis OFFICE The site needs analysis (Table 4-4) identified a need for six sites larger than five acres for office uses. Based on the analysis of land supply and site needs in Table 5-1, Springfield will need six sites 20 acres and larger for office over the 2010-2030 period. These larger office sites could have a variety of development types: a campus site for a large business, a business park, a mixed office and light industrial park, or other groupings of office buildings. • Site size. Springfield will need five sites 5 to 20 acres and one site 20 and 50 acres for office uses. o Springfield will need five sites of approximately 10 to 15 acres each. o Springfield will need one site of approximately 30 to 40 acres. This site should be dedicated to an office park. • Street access. Office sites should be located on an arterial or major collector streets. Traffic from office sites should not be routed through residential neighborhoods. • Topography. Office sites should be relatively flat slopes of not more than 15%e. • Access to services. City services should be accessible to the site, including sanitary sewer, and municipal water during the 20-year planning period. • Land ownership. Sites with a two or fewer owners are necessary to reduce the cost and uncertainty of land assembly. • Surrounding land uses. Office uses are compatible with light industrial uses, retail, other services, or high-density residential uses. RETAIL The site needs analysis (Table 4-4) identified a need for four sites larger than five acres for retail uses. Based on the analysis of land supply and site needs in Table 5-1, Springfield will need one site 20 to 50 acres for retail use over the 2010-2030 period. This site is expected to provide opportunities for large-scale retail development for multiple retail businesses (i.e., a community shopping center). • Site size. Springfield will need one site of approximately 10 to 15 acres for a community shopping center. Attachment 1-78 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 63 • Street access. The retail site should be located on an arterial or major collector street. Traffic from the site should not be routed through residential neighborhoods. • Topography. The retail site should be relatively flat with slopes no greater than 10%. • Access to services. City services should be accessible to the site, including sanitary sewer, and municipal water during the 20-year planning period. • Land ownership. Sites with not more than two ownerships are necessary to reduce the cost and uncertainty of land assembly. • Surrounding land uses. Retail uses are compatible with office, other services, industrial, business park, or high-density residential uses. • Visibility. The retail site must be highly visible from arterial streets or Interstate 5. OTHER SERVICES The site needs analysis (Table 4-4) identified a need for five sites larger than five acres for other services. Based on the analysis of land supply and site needs in Table 5-1, Springfield will need four sites 20 to 50 acres for other services over the 2010-2030 period. These sites are expected to provide opportunities for a wide range of service uses, such as medical services, government facilities, and education. • Site size. Springfield will need four sites of approximately 10 to 15 acres each. • Street access. Other service sites should be located on an arterial or major collector streets. Traffic from the sites should not be routed through residential neighborhoods. • Topography. The sites should be relatively flat with slopes of 15% or less. • Access to services. City services should be accessible to the site, including sanitary sewer, and municipal water over the 20-year planning period. • Land ownership. Sites with two are fewer owners are necessary to reduce the cost and uncertainty of land assembly. • Surrounding land uses. Other service sites uses may be compatible with office, retail, industrial, business park, or high-density residential uses. Attachment 1-79 Page 64 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis IMPLICATIONS The analysis of presented in the economic opportunities analysis has implications for Springfield’s economic land needs. • Economic growth. Decision makers and community members that participated in the economic opportunities analysis agreed that economic growth is desirable over the planning period. The employment forecast indicates Springfield will add 13,440 new employees between 2010 and 2030 using the OAR 660-024- 0040(8)(a)(ii) methodology. The economic opportunities analysis assumes that Springfield will have employment growth in a wide variety of businesses, from services and retail for residents to industrial development to medical services. The City wants to diversify its economy and attract higher wage and professional jobs. • Buildable lands. Springfield has 3,414 acres that are designated for industrial and other employment use. About two-thirds of the land designated for employment within Springfield’s UGB is considered developed and is not expected to redevelop over the 20 year planning period. Less than 15% of this land is buildable, unconstrained land. The majority of buildable, unconstrained employment land in Springfield has existing development on it that is expected to redevelop over the planning period. Springfield has a lack of buildable large sites, with one buildable site 20 acres and larger and 23 buildable sites in the five to 20 acre size range. • Employment that will not require vacant land. Springfield assumed that 52% of employment would not require vacant employment land.19 Springfield’s assumptions about employment that will not require vacant land are as follows: o Fourteen percent of employment (1,918 employees) will locate in non-employment designations. These employees will include people with home occupations, working from home, and businesses that locate in residential or other non-employment designations. This assumption is based on the percent of employment located in non-employment designations in 2006. See 19 The estimate of 52% of new employment not requiring vacant land is based on the assumption that 1,918 employees will locate in non-employment designations, 1,344 employees will locate in existing built space, and 3,669 employees will locate on redevelopable sites. The total number of new employees not requiring new land is 6,931 employees, which is approximately 52% of the forecasted growth of 13,440 jobs. Attachment 1-80 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 65 Appendix C and Table C-7 for more information about this assumption. o Ten percent of new employment (1,344 employees) will locate in existing built space. See Appendix C and Table C-7 for more information about this assumption. o Twenty-seven percent of new employment (3,669 employees) will locate on redevelopable sites. Table 5-1 shows that Springfield assumes 187 industrial sites and 340 commercial and mixed use sites will redevelop over the planning period. The estimate of employment on these sites was based on the average number of employees per site by site size in 2006. See Chapter 2 for more information about redevelopment assumptions. • Redevelopment potential. The analysis of redevelopment potential and need for employment land assumes that Springfield will have substantial redevelopment over the planning period. Consistent with City Council policies, the areas that are expected to have the most redevelopment are in Glenwood, especially along the Willamette Riverfront and Franklin/McVay corridor , and in the Downtown Urban Renewal District. All land deficiencies for sites smaller than five acres are expected to be addressed through redevelopment of existing sites. The majority of retail land needs are expected to be addressed through redevelopment. The City will need to make strategic investments that support redevelopment and to continue supporting redevelopment through City plans and policies. For example, redevelopment in the City’s targeted Downtown and Glenwood areas will require substantial investments in public infrastructure to provide public facilities and remove the existing impediments to development. • Need for large sites. Springfield will be able to meet employment land needs on sites five acres and smaller within the existing UGB, through redevelopment, infill development, and employment uses on non-employment land (e.g., home occupations). The employment land needs that may not be met within the UGB are for sites five acres and larger. The City only one buildable site 20 acres or larger. Availability of sites 20 acres and larger is important for attracting or growing large businesses, which are often traded-sector businesses. If the City does not have these large sites, there is little chance that the City will attract these types of businesses. While it may not be Attachment 1-81 Page 66 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis clear exactly what the business opportunities may be in ten to twenty years, it is clear that these businesses will not locate in Springfield if land is not available for development. For example, in the past twenty years, most of the Gateway area developed. The area has a mix of uses including a regional mall, apartments, offices, and more recently, the PeaceHealth Campus. Twenty-years ago it would have seemed highly unlikely that PeaceHealth would build their new facility in Springfield. If the City had not had desirable, serviceable land available, PeaceHealth would probably not have located their new facility in Springfield. • Short-term land supply. Based on the Goal 9 definition of short-term land supply and criteria for “engineering feasibility,” the majority of buildable land within the Springfield UGB is part of the short- term land supply, assuming that funding is available to extend services. The Goal 9 rule does not account for land availability, such as whether the landowner is willing to sell it or the owner is willing to redevelop it. The Goal 9 rule also does not account for differences in site characteristics, such as site size. As a result, developers may have difficulty finding developable land with specific site characteristics, such as large sites with highway access. Attachment 1-82 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 67 National, State, County, Appendix A and Local Trends This appendix summarizes national, state, county, and local trends affecting Springfield. It presents a demographic and socioeconomic profile of Springfield (relative to Lane County and Oregon) and describes trends that will influence the potential for economic growth in Springfield. This appendix covers recent and current economic conditions in the City, and forecasts from the State Employment Department for employment growth in Lane County. This appendix meets the intent of OAR 660-009-0015(1). NATIONAL, STATE, AND REGIONAL TRENDS NATIONAL TRENDS Economic development in Springfield over the next twenty years will occur in the context of long-run national trends. The most important of these trends include: • The aging of the baby boom generation, accompanied by increases in life expectancy. The number of people age 65 and older will more than double by 2050, while the number of people under age 65 with grow only 22 percent. The economic effects of this demographic change include a slowing of the growth of the labor force, an increase in the demand for healthcare services, and an increase in the percent of the federal budget dedicated to Social Security and Medicare.20 Baby boomers are expecting to work longer than previous generations. An increasing proportion of people in their early to mid-50s expect to work full-time after age 65. In 2004, about 40% of these workers expect to work full-time after age 65, compared with about 30% in 1992.21 This trend can be seen in Oregon, where the share of workers 65 years and older grew from 2% of the workforce 20 The Board of Trustees, Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, 2008, The 2008 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds, April 10, 2008. 21 “The Health and Retirement Study,” 2007, National Institute of Aging, National Institutes of Health, U.S. Department of Health and Human Services. Attachment 1-83 Page 68 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis in 1992 to 3% of the workforce in 2002, an increase of 64%. Over the same ten-year period, workers 45 to 64 years increased by 70%.22 • Tightening labor force. Growth in the labor force is projected to slow over the 2006-2016 period as a result of: (1) aging and retirement of the baby boomer generation and (2) the labor force participation by women has peaked. Job growth is expected to outpace population growth, with a 10% increase in employment (15.6 million jobs) compared to a 9% increase in civilian noninstitutional population 16 years and older (22 million people).23 • Need for replacement workers. The need for workers to replace retiring baby boomers will outpace job growth. According to the Bureau of Labor Statistics, net replacement needs will be 33.4 million job openings over the 2006-2016 period, more than twice the growth in employment of 15.6 million jobs. Management occupations and teachers will have the greatest need for replacement workers because these occupations have older-than- average workforce.24 • Increases in labor productivity. Productivity, as measured by output per hour, increased over the 1995 to 2005 period. The largest increases in productivity occurred over the 1995 to 2000 period, led by industries that produced, sold, or intensively used information technology products. Productivity increased over the 2000 to 2005 period but at a slower rate than during the latter half of the 1990’s. The sectors that experienced the largest productivity increases over the 2000 to 2005 period were: Information, Manufacturing, Retail Trade, and Wholesale Trade. Productivity in mining decreased over the five-year period. 25 • Continued trend towards domestic outsourcing. Businesses continue to outsource work to less expensive markets. Outsourcing generally falls into two categories: (1) moving jobs from relatively expensive areas to less expensive areas within the U.S. and (2) moving jobs outside of the U.S. to countries with lower labor costs. 22 “Growing Numbers of Older Workers in Oregon,” Oregon Employment Department. 23 Arlene Dohm and Lyn Shniper, “Occupational Employment Projections to 2016,” Monthly Labor Review, November 2007, pp. 86-125. 24 Arlene Dohm and Lyn Shniper, “Occupational Employment Projections to 2016,” Monthly Labor Review, November 2007, pp. 86-125. 25 Corey Holman, Bobbie Joyeaux, and Christopher Kask, “Labor Productivity trends since 2000, by sector and industry,” Bureau of Labor Statistics Monthly Labor Review, February 2008. Attachment 1-84 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 69 About three-quarters of layoffs in the U.S. between 1995 and 2004 were the result of domestic relocation, involving movement of work within the same company. The industries with the largest amounts of domestic outsourcing were: manufacturing, retail trade, and information.26 • Continued growth in global trade and the globalization of business activity. With increased global trade, both exports and imports rise. Faced with increasing domestic and international competition, firms will seek to reduce costs through implementing quality- and productivity-enhancing technologies, such as robotics or factor automation. In addition, some production processes will be outsourced offshore.27 • Continued shift of employment from manufacturing and resource-intensive industries to the service-oriented sectors of the economy. Increased worker productivity and the international outsourcing of routine tasks lead to declines in employment in the major goods-producing industries. Projections from the Bureau of Labor Statistics indicate that U.S. employment growth will continue to be strongest in healthcare and social assistance, professional and business services, and other service industries. Construction employment will also grow but manufacturing employment will decline.28 • The importance of high-quality natural resources. The relationship between natural resources and local economies has changed as the economy has shifted away from resource extraction. Increases in the population and in households’ incomes, plus changes in tastes and preferences, have dramatically increased demands for outdoor recreation, scenic vistas, clean water, and other resource-related amenities. Such amenities contribute to a region’s quality of life and play an important role in attracting both households and firms.29 26 Sharon P. Brown and Lewis B. Siegel, “Mass Layoff Data Indicate Outsourcing and Offshoring Work,” Monthly Labor Review, August 2005, pp. 3-10. 27 Eric B. Figueroa and Rose A. Woods, 2007, “Industry Output and Employment Projections to 2016,” Monthly Labor Review, November 2007, pp. 53-85. 28 Eric B. Figueroa and Rose A. Woods, 2007, “Industry Output and Employment Projections to 2016,” Monthly Labor Review, November 2007, pp. 53-85.; Arlene Dohm and Lyn Shniper, “Occupational Employment Projections to 2016,” Monthly Labor Review, November 2007, pp. 86-125. 29 For a more thorough discussion of relevant research, see, for example, Power, T.M. and R.N. Barrett. 2001. Post-Cowboy Economics: Pay and Prosperity in the New American West. Island Press, and Kim, K.-K., D.W. Marcouiller, and S.C. Deller. 2005. Attachment 1-85 Page 70 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis • Continued westward and southward migration of the U.S. population. Although there are some exceptions at the state level, a 2006 U.S. Census report documents an ongoing pattern of interstate population movement from the Northeast and Midwest to the South and West.30 • The growing importance of education as a determinant of wages and household income. According to the Bureau of Labor Statistics, a majority of the fastest growing occupations will require an academic degree, and on average they will yield higher incomes than occupations that do not require an academic degree. The fastest growing of occupations requiring an academic degree will be: computer software application engineers, elementary school teachers, and accountants and auditors. Occupations that do not require an academic degree (e.g., retail sales person, food preparation workers, and home care aides) will grow, accounting for about half of all jobs by 2016. These occupations typically have lower pay than occupations requiring an academic degree. 31 The national median income in 2006 was about $32,000. Workers without a high school diploma earned $13,000 less than the median income and workers with a high school diploma earned $6,000 less than median income. Workers with some college earned slightly less than median and workers with a bachelor’s degree earned $13,000 more than median. Workers in Oregon experience the same patterns as the nation but pay is generally lower in Oregon than the national average.32 • Continued increase in demand for energy. Energy prices are forecast to remain at relatively high levels, as seen in the 2006 to 2008 period, possibly increasing further over the planning period. Output from the most energy-intensive industries is expected to decline, but growth in the population and in the economy is expected to increase the total amount of energy demanded. Energy sources are expected to diversify and the energy efficiency of “Natural Amenities and Rural Development: Understanding Spatial and Distributional Attributes.” Growth and Change 36 (2): 273-297. 30 Marc J. Perry, 2006, Domestic Net Migration in the United States: 2000 to 2004, Washington, DC, Current Population Reports, P25-1135, U.S. Census Bureau. 31 Arlene Dohm and Lyn Shniper, “Occupational Employment Projections to 2016,” Monthly Labor Review, November 2007, pp. 86-125. 32 “Growing Number of Older Workers in Oregon,” Oregon Employment Department and American Community Survey, U.S. Census, 2006. Attachment 1-86 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 71 automobiles, appliances, and production processes are projected to increase. Despite increases in energy efficiency and decreases in demand for energy by some industries, demand for energy is expected to increase over the 2008 to 2030 period because of increases in population and economic activity. 33 • Impact of rising energy prices on commuting patterns. Energy prices may continue to be high (relative to historic energy prices) or continue to rise over the planning period.34 The increases in energy prices may impact willingness to commute long distances. There is some indication that increases in fuel prices have resulted in decreased suburban housing price (i.e., housing demand), especially in large urban areas (e.g., Los Angeles or Chicago) and suburbs far from the center city. If this pattern continues, the area in Oregon most likely to be most impacted is Portland, which has the largest area of urban and suburban development in the state.35 • Possible effect of rising transportation and fuel prices on globalization. Increases in globalization are related to the cost of transportation: When transportation is less expensive, companies move production to areas with lower labor costs. Oregon has benefited from this trend, with domestic outsourcing of call centers and other back office functions. In other cases, businesses in Oregon (and the nation) have “off-shored” employment to other countries, most frequently manufacturing jobs. Increases in either transportation or labor costs may impact globalization. When the wage gap between two areas is larger than the additional costs of transporting goods, companies are likely to shift operations to an area with lower labor costs. Conversely, when transportation costs increase, companies may have incentive to relocate to be closer to suppliers or consumers. This effect occurs incrementally over time and it is difficult to measure the impact in the short-term. If fuel prices and transportation costs decrease over the planning period, businesses may not make the decision to relocate (based on transportation 33 Energy Information Administration, 2008, Annual Energy Outlook 2008 with Projections to 2030, U.S. Department of Energy, DOE/EIA-0383(2008), April. 34 Energy Information Administration, 2008, Annual Energy Outlook 2008 with Projections to 2030, U.S. Department of Energy, DOE/EIA-0383(2008), April 35 Cortright, Joe. “Driven to the Brink: How the Gas Price Spike Popped the Housing Bubble and devalued the Suburbs,” May 2008. Attachment 1-87 Page 72 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis costs) because the benefits of being closer to suppliers and markets may not exceed the costs of relocation. • Growing opportunities for “green” businesses. Businesses are increasingly concerned with “green” business opportunities and practices. These business practices are concerned with “the design, commercialization, and use of processes and products that are feasible and economical while reducing the generation of pollution at the source and minimizing the risk to human health and the environment.”36 Green business opportunities have historically been at the mercy of feasibility and economics; if a firm ignores feasibility and economics while trying to be green, the firm may not be able to afford to operate long enough to learn how to make green businesses feasible. The three types of green business opportunities are products, processes, and education. o Producing green products. Green products perform the function of regular products, but do it in a way that uses fewer resources or creates less pollution. For example, hybrid vehicles are green because they use less gasoline to operate and add fewer pollutants to the air. Yet hybrid vehicles serve the same function as non-hybrid cars. Another example is bamboo fencing and lumber, which is green because bamboo is more renewable than traditional lumber. Bamboo products have the strength necessary for building. o Providing education about green practices or products. Green education is often closely related to producing green products and is often done by consultants or nonprofits. Examples of companies involved in green education include the U.S. Green Building Council, which certifies buildings as green (LEED certification), or a consulting firm that writes a green (or sustainable) plan for a city or business. o Using green business practices. Green business practices are alternative methods of doing business that promote resource conservation, prevent or reduce pollution, or have other beneficial environmental effects. Examples of green business processes include: buying products locally to reduce shipping distance, recycling waste products (where 36 Urban Green Partnership at urbangreenpartnership.org Attachment 1-88 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 73 possible), or maximizing the use of natural lighting to reduce use of electricity and light bulbs. For example, ECONorthwest is a green educator because we help our clients manage natural resources effectively and take all costs and benefits of a particular action into account in order to properly judge the correct course of action. A frequent method of marketing green products involves green education. It is much easier to sell a hybrid car to a customer who knows the environmental benefits of owning a hybrid, so educating potential customers can aid greatly in increasing sales. • Potential impacts of global climate change. There is growing support for but not a consensus about whether global climate change is occurring as a result of greenhouse gas emissions. There is a lot of uncertainty surrounding global climate change, including the pace of climate change and the ecological and economic impacts of climate changes. Climate change may result in the following changes in the Pacific Northwest: (1) increase in average temperatures, (2) shift in the type of precipitation, with more winter precipitation falling as rain, (3) decrease in mountain snow- pack and earlier spring thaw and (4) increases in carbon dioxide in the air.37 Assuming that global climate change is occurring and will continue to occur over the next 20-years, a few broad, potential economic impacts for the nation and Pacific Northwest include:38 o Potential impact on agriculture and forestry. Climate change may impact Oregon’s agriculture through changes in: growing season, temperature ranges, and water availability.39 Climate change may impact Oregon’s forestry through increase in wildfires, decrease in the rate of tree growth, change in mix of tree species, and increases in disease and pests that damage trees.40 37 “Economic Impacts of Climate Change on Forest Resources in Oregon: A Preliminary Analysis,” Climate Leadership Initiative, Institute for Sustainable Environment, University of Oregon, May 2007. 38 The issue of global climate change is complex and there is a substantial amount of uncertainty about climate change. This discussion is not intended to describe all potential impacts of climate change but to present a few ways that climate change may impact the economy of cities in Oregon and the Pacific Northwest. 39 “The Economic Impacts of Climate Change in Oregon: A preliminary Assessment,” Climate Leadership Initiative, Institute for Sustainable Environment, University of Oregon, October 2005. 40 “Economic Impacts of Climate Change on Forest Resources in Oregon: A Preliminary Analysis,” Climate Leadership Initiative, Institute for Sustainable Environment, University of Oregon, May 2007. Attachment 1-89 Page 74 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis o Potential impact on tourism and recreation. Impacts on tourism and recreation may range from: (1) decreases in snow-based recreation if snow-pack in the Cascades decreases, (2) negative impacts to tourism along the Oregon Coast as a result of damage and beach erosion from rising sea levels,41 (3) negative impacts on availability of water summer river recreation (e.g., river rafting or sports fishing) as a result of lower summer river flows, and (4) negative impacts on the availability of water for domestic and business uses. o Potential changes in government policies. There is currently no substantial national public policy response to global climate change. States and regional associations of states are in the process of formulating policy responses to address climate change including: increasing renewable energy generation, selling agricultural carbon sequestration credits, and encouraging energy efficiency.42 Without clear indications of the government policies that may be adopted, it is not possible to assess the impact of government policies on the economy. Global climate change may offer economic opportunities. The search for alternative energy sources may result in increased investment and employment in “green” energy sources, such as wind, solar, and biofuels. Firms in the Northwest are well positioned to lead efforts on climate change mitigation, which may result in export products, such as renewable technologies or green manufacturing. 43 Short-term national trends will also affect economic growth in the region, but these trends are difficult to predict. At times these trends may run counter to the long-term trends described above. A recent example is the downturn in economic activity in 2007 following declines in the housing market and the mortgage banking crisis. The result of the economic downturn has been a decrease in employment related to the housing market, such as construction and real estate. Employment in these industries will recover as the housing market recovers and will continue 41 “The Economic Impacts of Climate Change in Oregon: A preliminary Assessment,” Climate Leadership Initiative, Institute for Sustainable Environment, University of Oregon, October 2005. 42 Pew Center on Global Climate Change website: http://www.pewclimate.org/what_s_being_done/in_the_states/ 43 “The Economic Impacts of Climate Change in Oregon: A preliminary Assessment,” Climate Leadership Initiative, Institute for Sustainable Environment, University of Oregon, October 2005. Attachment 1-90 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 75 to play a significant role in the national, state, and local economy over the long run. This report takes a long-run perspective on economic conditions (as the Goal 9 requirements intend) and does not attempt to predict the impacts of short-run national business cycles on employment or economic activity. STATE TRENDS State and regional trends will also affect economic development in Springfield over the next twenty years. The most important of these trends includes: continued in-migration from other states, distribution of population and employment across the State, • Continued in-migration from other states. Oregon will continue to experience in-migration from other states, especially California and Washington. According to a U.S. Census study, Oregon had net interstate in-migration (more people moved to Oregon than moved from Oregon) during the period 1990-2004.44 Oregon had an annual average of 26,290 more in-migrants than out-migrants during the period 1990-2000. The annual average dropped to 12,880 during the period 2000-2004.45 Most in-migrants come from California, Washington, and other western states.46 • Concentration of population and employment in the Willamette Valley. Nearly 70% of Oregon’s population lives in the Willamette Valley. About 10% of Oregon’s population lives in Southern Oregon and 9% lives in Central Oregon. The Oregon Office of Economic Analysis (OEA) forecasts that population will continue to be concentrated in the Willamette Valley through 2040, increasing slightly to 71% of Oregon’s population. Employment growth generally follows the same trend as population growth. Employment growth varies between regions even more, however, as employment reacts more quickly to changing economic conditions. Total employment increased in each 44 Marc J. Perry, 2006, Domestic Net Migration in the United States: 2000 to 2004, Washington, DC, Current Population Reports, P25-1135, U.S. Census Bureau. 45 In contrast, California had net interstate out-migration over the same period. During 1990-2000, California had an annual average of 220,871 more out-migrants than in-migrants. The net outmigration slowed to 99,039 per year during 2000-2004. 46 Oregon Department of Motor Vehicles collects data about state-of-origin for drivers licenses surrendered by people applying for an Oregon drivers license from out-of-state. Between 2000 and 2007, about one-third of licenses surrendered were from California, 15% to 18% were surrendered from Washington, and about 17% to 19% were from the following states: Arizona, Idaho, Nevada, Colorado, and Texas. Attachment 1-91 Page 76 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis of the state’s regions over the period 1970-2006 but over 70% of Oregon’s employment was located in the Willamette Valley. • Change in the type of the industries in Oregon. As Oregon has transitioned away from natural resource-based industries, the composition of Oregon’s employment has shifted from natural resource based manufacturing and other industries to service industries. The share of Oregon’s total employment in Service industries increased from its 1970s average of 19% to 30% in 2000, while employment in Manufacturing declined from an average of 18% in the 1970s to an average of 10% in 2005. • Shift in manufacturing from natural resource-based to high-tech and other manufacturing industries. Since 1970, Oregon started to transition away from reliance on traditional resource-extraction industries. A significant indicator of this transition is the shift within Oregon’s manufacturing sector, with a decline in the level of employment in the Lumber & Wood Products industry and concurrent growth of employment in other manufacturing industries, such as high-technology manufacturing (Industrial Machinery, Electronic Equipment, and Instruments), Transportation Equipment manufacturing, and Printing and Publishing. 47 • Continued importance of manufacturing to Oregon’s economy. Revenue from exports totaled $16.5 million in 2007, an increase of $5.1 million or 45% since 2000. Four of the five industries that accounted for more than three-quarters of revenue from exports in 2007 ($12.6 million) were manufacturing industries: Computers and Electronic Production ($6.3 million); Crop Production ($2.2 million); Transportation Equipment ($1.7 million); Machinery Manufacturers ($1.7 million); and Chemical Manufacturers ($0.7 million).Manufacturing employment is concentrated in five counties in the Willamette Valley or Portland area: Washington, Multnomah, Lane, Clackamas, and Marion Counties. Average wages for employees of manufacturing firms in these counties in 2006 ranged from $71,500 to $34,200 and were generally above the state’s average (about $38,000) 48 47 Although Oregon’s economy has diversified since the 1970’s, natural resource-based manufacturing accounts for more than one-third of employment in manufacturing in Oregon in 2006, with the most employment in Wood Product and Food manufacturing. 48 OECDD, “Economic Data Packet, March 2008.” Attachment 1-92 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 77 • Small businesses continue to account for over 50% of employment in Oregon. Small business, with 100 or fewer employees, account for 51% of private sector employment in Oregon, up from about 50.2% of private employment in 2000 and down from 52.5% in 1996. Workers of small businesses typically had lower wages than the state average, with average wages of $33,130 compared to the statewide average of about $38,000 in 2006. • Continued lack of diversity in the State Economy. While the transition from Lumber and Wood Products manufacturing to high-tech manufacturing has increased the diversity of employment within Oregon, it has not significantly improved Oregon's diversity relative to the national economy. Oregon's relative diversity has historically ranked low among states. Oregon ranked 35th in diversity (1st = most diversified) based on Gross State Product data for 1963–1986, and 32nd based on data for the 1977– 1996 period.49 A recent analysis, based on 2006 data, ranked Oregon 31st.50 These rankings suggest that Oregon is still heavily dependent on a limited number of industries. Relatively low economic diversity increases the risk of economic volatility as measured by changes in output or employment. The changing composition of employment has not affected all regions of Oregon evenly. Growth in high-tech and Services employment has been concentrated in urban areas of the Willamette Valley and Southern Oregon, particularly in Washington, Benton, and Josephine Counties. The brunt of the decline in Lumber & Wood Products employment was felt in rural Oregon, where these jobs represented a larger share of total employment and an even larger share of high-paying jobs than in urban areas. 49 LeBre, Jon. 1999. "Diversification and the Oregon Economy: An Update." Oregon Labor Trends. February. 50 CFED, 2007, The Development Report Card for the States, http://www.cfed.org. Attachment 1-93 Page 78 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis ECONOMIC TRENDS IN LANE COUNTY AND SPRINGFIELD Future economic growth in Springfield will be affected in part by demographic and economic trends in the city and surrounding region. A review of historical demographic and economic trends provides a context for establishing a reasonable expectation of future growth in Springfield. In addition, the relationship between demographic and economic indicators such as population and employment can help assess the local influence of future trends and resulting economic conditions. This section addresses the following trends in Springfield: • Population and demographics • Household and personal income • Employment • Business activity • Outlook for growth in Springfield POPULATION AND DEMOGRAPHIC CHARACTERISTICS Population growth in Oregon tends to follow economic cycles. Historically, Oregon’s economy is more cyclical than the nation’s, growing faster than the national economy during expansions, and contracting more rapidly than the nation during recessions. Oregon grew more rapidly than the U.S. in the 1990s (which was generally an expansionary period) but lagged behind the U.S. in the 1980s. Oregon’s slow growth in the 1980s was primarily due to the nationwide recession early in the decade. As the nation’s economic growth has slowed during 2007, Oregon’s population growth began to slow. Oregon’s population grew from 2.8 million people in 1990 to 3.7 million people in 2007, an increase of more than 900,000 people at an average annual rate of 1.6%. Oregon’s growth rate slowed to 1.3% annual growth between 2000 and 2007. Lane County grew slower than the State average between 1990 and 2007, growing at 1.1% annually and adding more than 60,000 people. More than 60% of the County’s population lived in the Eugene-Springfield area in 2007, with about 17% of the County’s population in Springfield. Springfield’s population grew faster than the County average, at 1.5% annually, adding 12,637 residents over the seventeen-year period. Attachment 1-94 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 79 Table A-1. Population in the U.S., Oregon, the Willamette Valley, Lane County, Springfield, and Eugene, 1990-2007 Source: U.S. Census, the Population Research Center at Portland State University. Notes: Benton, Clackamas, Lane, Linn, Marion, Multnomah, Polk, Washington, and Yamhill Counties represent the Willamette Valley Region. Migration is the largest component of population growth in Oregon. Between 1990 and 2007, in-migration accounted for 70% of Oregon’s population growth. Over the same period, in-migration accounted for 74% of population growth in Lane County, adding nearly 44,500 residents over the seventeen-year period. Springfield’s population was younger than the County or State averages in 2008. Figure A-1 shows the age structure for Oregon, Lane County, Eugene, and Springfield in 2008. Springfield had a greater proportion of its population under 44 years of age (66%) than Eugene (62%), Lane County (58%), or Oregon (60%). Springfield also had a smaller share of population aged 55 and older, 21% of Springfield’s population, compared to 24% in Eugene, 27% in the County, 26% in the State. Area 1990 2000 2007 Number Percent AAGR U.S.248,709,873 281,421,906 301,621,157 52,911,284 21% 1.1% Oregon 2,842,321 3,421,399 3,745,455 903,134 32% 1.6% Willamette Valley 1,962,816 2,380,606 2,602,790 639,974 33% 1.7% Lane County 282,912 322,959 343,140 60,228 21% 1.1% Springfield 44,683 52,864 57,320 12,637 28% 1.5% Eugene 112,669 137,893 153,690 41,021 36% 1.8% Change 1990 to 2007Population Attachment 1-95 Page 80 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Figure A-1. Population by age, Oregon, Lane County, Eugene, and Springfield, 2008 Source: Claritas 2008, percentages calculated by ECONorthwest. The average age of Springfield residents is increasing. According to the US Census, Springfield’s average age was 32 in 2000, 30 in 1990, and 26 in 1980. Table A-2 shows the change in age distribution for Springfield between 2000 and 2008. The age group that increased the most was people aged 45 to 64, which grew by 2,540 people (24%). This age group’s proportion of the total population increased from 20% to 23% during this time period. The largest percentage decrease was in people aged 18 to 24, which shrunk by 913 people (16%). 0%5%10% 15% 20% Under 10 10-17 18-24 25-34 35-44 45-54 55-64 65 and over AgePercent of Population Oregon Lane County Springfield Eugene Attachment 1-96 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 81 Table A-2. Change in age distribution, Springfield, 2000-2008 Source: U.S. Census 2000 and Claritas 2008 Note: Percent change over the 2000 to 2008 period is based on the growth in the age group divided by the number of people in the age group in 2000. For example, people 5 to 17 years old had a 4% percent change, which was calculated using the following calculation: 408/10,069 = 4%. Note: Share refers to the change in the percent of an age group between 2000 and 2008. For example, the share of people 18 to 24 years old decreased from 11% to 9%, a decrease of 2.3%. Note: Percentages may not add to 100% as a result of rounding errors. HOUSEHOLD AND PERSONAL INCOME Income in Lane County and Springfield has historically been lower than the State or national averages. Lane County’s median household income in 2006 was $42,127, compared with $46,230 for Oregon and the national average of $48,451. The median household income in Springfield in 1999 was $33,031, 89% of the County average of $36,942. Lane County’s median household income in 2006 was $42,127, compared with $46,230 for Oregon and the national average of $48,451. Figure A-2 shows the distribution of household income in Oregon, Lane County, Eugene, and Springfield in 2008. Figure A-2 shows that a larger share of households in Springfield (32%) had an income of $25,000 or less, compared to Lane County (27%) or the State (23%). Springfield also has a lower share of households with income above $75,000 (17%) than Eugene (23%), the County (23%), or the State (27%). Age Group Number Percent Number Percent Number Percent Share Under 5 4,327 8% 4,121 7% -206 -5% -0.8% 5-17 10,069 19% 10,477 19% 408 4% -0.3% 18-24 5,890 11% 4,977 9% -913 -16% -2.3% 25-44 16,609 31% 17,372 31% 763 5% -0.4% 45-64 10,546 20% 13,086 23% 2,540 24% 3.4% 65 and over 5,423 10% 5,983 11% 560 10% 0.4% Total 52,864 100% 56,016 100% 3,152 6% 0.0% 2000 2008 Change 2000 to 2008 Attachment 1-97 Page 82 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Figure A-2. Distribution of household income of Oregon, Lane County, Eugene, and Springfield, 2008 Source: Claritas 2008 Figure A-3 shows the change in per capita personal income for the U.S., Oregon, and Lane County between 1980 and 2005 (in constant 2005 dollars). Oregon’s per capita personal income was consistently lower than the U.S. average over the 25-year period. While the gap between the Oregon and U.S. average narrowed in the mid-1990s, it widened again starting in the late 1990’s. Lane County’s personal income over the 25-year period was consistently lower than Oregon’s personal income. In 2005, per capita personal income in Lane County was approximately 92% of Oregon’s per capital income and 87% of the U.S. per capital income. During the 25-year period, per capita personal income in both Lane County and Oregon grew by 49%, while personal income grew by 59% nationally during the same period. 0% 5% 10% 15% 20% 25% 30% 35% Less than $25,000 $25,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 - $150,000 Greater than $150,000 Household IncomePercent of Households Oregon Lane County Springfield Eugene Attachment 1-98 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 83 Figure A-3. Per capita personal income in the U.S., Oregon, and Lane County, 1980-2005, ($2005) Source: Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce Figure A-4 shows the major sources of per capita personal income for Oregon and Lane County between 1980 and 2005. Lane County’s share of personal income from net earnings was lower than for Oregon and the County’s share of personal income from transfer payments and dividends, interest, and rent was higher than the State average. Retirees are most likely to have personal income from current transfers and dividends, interest, and rent. The larger share of personal income from these sources makes sense because Lane County has a larger share of people over 60-years than the State average. Figure A-1 shows that Lane County has a higher percentage of residents over 60 years old than the State average. In addition, the share of population aged 65 and older increased by 16% between 1990 and 2000 in Lane County, compared with a 12% statewide increase in population 65 and older. U.S.Oregon Lane County Attachment 1-99 Page 84 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Figure A-4. Per capita personal income by major sources, Oregon and Lane County, 1980-2005 Source: Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce Table A-3 shows average annual pay per employee in the U.S., Oregon, and Lane County for 2000 to 2006. The national average wage grew faster than State or County averages. The average U.S. wage increased by 20% (more than $7,000), compared to the State increase of 16% (more than $5,000) or the County increase of 19% (more than $5,000). Wages in Lane County relative to the U.S. decreased by 1% over the six-year period. Lane County’s average annual wage has increased by 19% (more than $5,000) from $27,878 to $33,240 over the 2000 to 2006 period. Lane County’s average pay has grown faster than the State average, increasing from 85% of the State average in 2000 to 87% in 2006. Table A-3. Average annual pay, Oregon and Lane County (nominal dollars), 2000-2006 Source: Oregon Employment Department and U.S. Bureau of Labor Statistics Oregon 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1980 1985 1990 1995 2000 2005 YearPercent of IncomeLane County 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1980 1985 1990 1995 2000 2005 YearPercent of IncomeCurrent Transfers Dividends, Interest, Rent Net Earnings U.S Oregon Lane County % of U.S. % of State 2000 $35,323 $32,776 $27,878 79% 85% 2001 $36,219 $33,202 $28,982 80% 87% 2002 $36,764 $33,685 $29,427 80% 87% 2003 $37,765 $34,455 $30,325 80% 88% 2004 $39,354 $35,627 $31,339 80% 88% 2005 $40,677 $36,593 $32,302 79% 88% 2006 $42,535 $38,070 $33,240 78% 87% Change 2000 to 2006 Nominal Change $7,212 $5,294 $5,362 Percent Change 20% 16% 19% Lane County Attachment 1-100 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 85 Springfield’s average wages are similar to the County average. The average wage for workers in Springfield in 2006 was nearly $33,000. LANE COUNTY EMPLOYMENT TRENDS Tables A-4 and A-5 present data from the Oregon Employment Department that show changes in covered employment51 for Lane County between 1980 and 2005. The changes in sectors and industries are shown in two tables: (1) between 1980 and 2000 and (2) between 2001 and 2005. The analysis is divided in this way because of changes in industry and sector classification that made it difficult to compare information about employment collected after 2001 with information collected prior to 2000. Employment data in this section is summarized by sector, each of which includes several individual industries. For example, the Retail Trade sector includes General Merchandise Stores, Motor Vehicle and Parts Dealers, Food and Beverage Stores, and other retail industries. Table A-4 shows the changes in covered employment by sector in Lane County between 1980 and 2000. Covered employment in the County grew from 97,600 to 139,696, an increase of 43% or 42,096 jobs. Every sector added jobs during this period, except for Mining. The sectors with the greatest change in employment were Services and Retail Trade, adding a total of 29,423 jobs or about 70% of all new jobs. Manufacturing grew by 4,020 jobs during the twenty-year period. The industries with the largest manufacturing growth were Transportation equipment manufacturing (R.V. manufacturing), computer and electronics manufacturing, and machinery manufacturing. Average pay per employee increased from about $13,700 in 1980 to $27,900 in 2000. The sectors that grew the fastest generally paid less than average, with Services paying between 80% to 90% of average and Retail Trade paying about 60% of average. Manufacturing jobs generally paid more than the average, varying between 140% of average in 1980 to 124% of average by 2000. 51 Covered employment refers to jobs covered by unemployment insurance, which includes most wage and salary jobs but does not include sole proprietors, seasonal farm workers, and other classes of employees. Attachment 1-101 Page 86 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table A-4. Covered employment in Lane County, 1980-2000 Source: Oregon Employment Department, Oregon Labor Market Information System, Covered Employment & Wages. Summary by industry and percentages calculated by ECONorthwest Note: AAGR is average annual growth rate Table A-5 shows the change in covered employment by sector for Lane County between 2001 and 2007. Employment increased by 13,549 jobs or 10% during this period. The private sectors with the largest increases in numbers of employees were Administration Support and Cleaning, Retail Trade, Construction, and Health and Social Assistance. The sector that lost the greatest number of employees during this period was Agriculture, Forestry, Fishing and Mining. Table A-5. Covered employment in Lane County, 2001-2007 Source: Oregon Employment Department, Oregon Labor Market Information System, Covered Employment & Wages. Summary by industry and percentages calculated by ECONorthwest Note: AAGR is average annual growth rate Sector 1980 1990 2000 Difference Percent AAGR Agriculture, Forestry & Fishing 1,137 1,863 2,101 964 85% 2.5% Mining 231 179 154 -77 -33% -1.6% Construction 4,600 3,992 6,834 2,234 49% 1.6% Manufacturing 19,638 20,654 23,658 4,020 20% 0.7% Trans., Comm., & Utilities 3,836 3,750 3,845 9 0% 0.0% Wholesale Trade 5,578 5,900 6,422 844 15% 0.6% Retail Trade 20,299 24,429 28,758 8,459 42% 1.4% Finance, Insurance & Real Estate 4,217 4,523 6,198 1,981 47% 1.6% Services 18,272 27,817 39,236 20,964 115% 3.1% Nonclassifiable/all others 13 50 37 24 185% 4.3% Government 19,779 20,219 22,453 2,674 14% 0.5% Total 97,600 113,376 139,696 42,096 43% 1.4% Change 1980 to 2000 Sector 2001 2007 Difference Percent AAGR Natural Resources and Mining 2,338 2,062 -276 -12% -2.1% Construction 6,366 8,034 1,668 26%4.0% Manufacturing 19,697 19,864 167 1% 0.1% Wholesale 5,300 6,071 771 15% 2.3% Retail 17,912 19,755 1,843 10%1.6% Transportation & Warehousing 2,606 3,047 441 17% 2.6% Information 3,729 3,901 172 5% 0.8% Finance & Insurance 3,963 4,313 350 9% 1.4% Real Estate Rental & Leasing 2,508 2,530 22 1% 0.1% Professional, Scientific & Tech. Srv.5,571 5,658 87 2% 0.3% Management of Companies 1,818 1,901 83 5% 0.7% Admin. Support & Cleaning Srv. 6,399 8,738 2,339 37%5.3% Education 1,067 1,389 322 30% 4.5% Health & Social Assistance 16,871 18,966 2,095 12%2.0% Arts, Entertainment & Recreation 1,542 2,163 621 40% 5.8% Accomodations & Food Services 11,746 12,737 991 8% 1.4% Other Services (except Public Admin.) 5,552 5,674 122 2% 0.4% Private Non-Classified 49 45 -4 -8% -1.4% Government 22,398 24,133 1,735 8% 1.3% Total 137,432 150,981 13,549 10% 2.4% Change 2001 to 2007 Attachment 1-102 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 87 Table A-6 shows a summary of employment in Lane County in 2007. Table A-6 shows the ten largest sectors in bold are the top ten employers, sectors with below average pay per employee in red, and sectors with above average pay per employee in blue. Table A-6 shows: • Construction, Manufacturing, Government, and Health and Social Assistance were among the sectors with the greatest employment in Lane County and have above average pay per employee. These sectors accounted for 47% of employment or nearly 71,000 employees in Lane County. • Retail, Accommodations and Food Services, and Administration and Support and Waste Management were among the sectors with the greatest employment in Lane County and have below average pay per employee. These sectors accounted for 27% of employment or more than 41,000 employees in Lane County. Attachment 1-103 Page 88 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table A-6. Covered employment in Lane County, 2007 Source: Oregon Employment Department, Oregon Labor Market Information System, Covered Employment & Wages. Summary by industry and percentages calculated by ECONorthwest Notes: Sectors in bold are the top ten employers, sectors in red have below average pay per employee, and sectors in blue have above average pay per employee. Note: Average pay per employee is shown as reported by the Oregon Employment Department. Sector/Industry Establish- ments Employment Percent of Employment Average Pay per Employee Natural Resources & Mining 228 2,062 1% $34,662 Construction 1,249 8,034 5% $41,346 Construction of buildings 445 445 0%$445 Specialty trade contractors 695 695 0%$695 Manufacturing 599 19,864 13% $41,055 Wood product manufacturing 76 4,548 3% $42,423 Machinery manufacturing 51 1,816 1% $48,027 Computer & electronic product mfg.20 1,934 1% $56,594 Transportation equipment mfg.31 4,093 3% $31,942 Wholesale 588 6,071 4% $44,609 Retail 1,276 19,755 13% $24,258 Motor vehicle & parts dealers 159 2,997 2% $39,809 Building material & garden supply stores 85 1,603 1% $27,883 Food & beverage stores 205 4,044 3% $20,451 General merch&ise stores 58 4,073 3% $21,784 Miscellaneous store retailers 174 1,455 1% $20,513 Transportation, Warehousing & Utilties 267 3,047 2% $37,448 Information 180 3,901 3% $50,769 Finance & Insurance 611 4,313 3% $49,753 Credit intermediation & related activities 252 252 0%$252 Insurance carriers & related activitie 230 230 0%$230 Real Estate Rental & Leasing 566 2,530 2% $25,994 Professional, Scientific & Technical Svcs 1,004 5,658 4% $41,314 Management of Companies 87 1,901 1% $66,758 Admin. & Support & Waste Mgmt 484 8,738 6% $21,771 Private Education 135 1,389 1% $23,709 Health & Social Assistance 971 18,966 13% $39,836 Ambulatory health care services 598 6,453 4% $52,408 Nursing & residential care facilities 181 3,915 3% $22,013 Arts, Entertainment & Recreation 151 2,163 1% $13,533 Accomodations & Food Services 861 12,737 8% $13,749 Accommodation 100 100 0% $100 Food services & drinking places 734 734 0% $734 Other Services 1,322 5,674 4% $22,345 Repair & maintenance 309 309 0% $309 Membership associations & organization 437 437 0% $437 Private Non-Classified 66 45 0% $41,167 Government 376 24,133 16% $39,312 Federal 70 1,764 1% $57,977 State 61 6,878 5% $39,498 Local 245 15,491 10% $37,105 Education & Health Services 147 8,547 6% $31,343 Public Administration 49 4,268 3% $47,464 Total 11,021 150,981 100% $34,328 Attachment 1-104 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 89 EMPLOYMENT IN SPRINGFIELD Table A-7 shows a summary of confidential employment data for Springfield in 2006. Springfield had 27,310 jobs at 1,819 establishments in 2006, with an average firm size of 15 employees. The sectors with the greatest employees were: Retail (13%), Government (13%), Health Care and Social Assistance (11%), and Manufacturing (10%). These sectors accounted for 17,863 or 65% of Springfield’s jobs. Attachment 1-105 Page 90 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table A-7. Covered employment in Springfield, 2006 Source: Oregon Employment Department Quarterly Census of Employment and Wages (QCEW). Summary by industry and percentages calculated by ECONorthwest Note: The percent column does not add to 100% as a result of rounding errors. Map A-1 shows employment in Springfield by plan designations and number of employees in 2006. Map A-1 shows that employees are distributed throughout Springfield, with concentrations along Main Street and in Gateway. Sector / Industry Number % of Total Agriculture, Forestry, Fishing, and Mining 22 282 1% Forestry and Logging 11 136 0% Other Agriculture, Forestry, Fishing, and Mining 11 146 1% Construction 205 1,922 7% Manufacturing 104 2,714 10% Wood Product Manufacturing 18 1,013 4% Chemical Manufacturing 3 251 1% Fabricated Metal Product Manufacturing 18 233 1% Transportation Equipment Manufacturing 7 188 1% Food Manufacturing 6 111 0% Plastics and Rubber Products Manufacturing 6 111 0% Furniture and Related Product Manufacturing 9 80 0% Machinery Manufacturing 7 68 0% Other Manufacturing 30 659 2% Wholesale Trade 71 1,230 5% Retail 265 3,632 13% General Merchandise Stores 24 1,008 4% Food and Beverage Stores 42 744 3% Motor Vehicle and Parts Dealers 35 339 1% Building Material, Garden Equipment, & Supplies Dealers 15 278 1% Electronics and Appliance Stores 16 210 1% Other Retail 133 1,053 4% Transportation and Warehousing and Utilities 55 941 3% Information 24 1,356 5% Finance and Insurance 99 1,110 4% Real Estate and Rental and Leasing 98 441 2% Professional, Scientific, and Technical Services 97 576 2% Management of Companies and Enterprises 24 343 1% Admin. & Support and Waste Mgt Services 82 2,460 9% Private Educational Services 12 109 0% Health Care and Social Assistance 167 3,069 11% Arts, Entertainment, and Recreation 30 321 1% Accommodation and Food Services 179 2,453 9% Accommodation 12 227 1% Food Services and Drinking Places 167 2,226 8% Other Services 217 816 3% Government 68 3,535 13% Federal and State 13 368 1% Local 55 3,167 12% Total 1,819 27,310 100% EmployeesEstablish- ments Attachment 1-106 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 91 Map A-2 shows the size of employers in Springfield by Plan Designation. Larger employers are clustered along Main Street, in Gateway, and in other areas zoned for commercial and industrial use. Small employers are scattered in most parts of the City. Attachment 1-107 City of Springfield O r e g o n Employers by Number of Employees Springfield 2006 ECONorthwest, April 2008 0 1,800 3,600900 Feet¯ City Limits Urban Growth Boundary Legend 2006 Employment 0 - 25 26 - 100 101 - 300 301 - 1000 1001 - 5000 Attachment 1-108 City of Springfield O r e g o n Employers by Size, and Type Springfield 2006 ECONorthwest, April 2008 0 1,800 3,600900 Feet¯ City Limits Urban Growth Boundary Legend Other 0 - 25 26 - 100 101 - 300 301 - 1000 1001 - 5000 Industrial 0 - 25 26 - 100 101 - 300 301 - 1000 1001 - 5000 Attachment 1-109 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 95 Firms wanting to expand or locate in Springfield will be looking for a variety of site and building characteristics, depending on the industry and specific circumstances. One way to describe site needs is to group industries based on building and site characteristics. Each sector has been uniquely assigned to a “typical” building type, grouped by industrial and commercial uses. Table A-8. Converting employment to building types Source: ECONorthwest based on methodology used by Metro in the report “Urban Growth Report: An Employment Need Analysis,” 2002 Table A-9 shows employment by Comprehensive Plan Designation in 2006. About 39% of Springfield’s employment is located in commercial plan designations, with more than 8,000 employees in the Commercial designation. An additional 34% of the City’s employment is located in industrial designations. About 16% of Springfield’s employment is located in residential designations with 10% in the Low Density Residential designation. Types of industries NAICS Sectors Industrial WD Warehousing & Distribution Transportation & Wholesale Trade 48-49, 42 GI General Industrial Ag, Mining, Utlilities, Construction, Manufacturing 11, 21,22, 23, 31-33 Commercial Office Office Information, FIRE, Professional Srv, Mgt of Companies, Admin & Support & Waste Mgt, Utilities, Arts/Entertainment, Other Services 51-56, 71, 81 Retail Retail Retail (incl. Accom & Food Srv)44-45, 72 Med/Gov. Medical & Government Institutions Health & Social Services, Public Administration 61, 62, 92 Building Type Attachment 1-110 Page 96 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table A-9. Covered employment by Plan Designation, Springfield, 2006 Source: Oregon Employment Department Quarterly Census of Employment and Wages (QCEW) and Springfield GIS data; calculations and analysis by ECONorthwest Note: The number of employees shown in Table A-9 (27,090) is fewer than shown in Table A-7 (27,310) because of data issues between the QCEW and GIS data. Table A-10 shows the estimated covered employment located in non- residential plan designations by type of building in Springfield in 2006. More than half of Springfield’s employment in 2006 was located in Office and Retail buildings. More than two-thirds of Springfield’s firms were located in Office and Retail buildings. Plan Designation Emp. Percent Emp. Percent Emp. Percent Commercial Commercial 450 5.7% 7,649 39.8%8,099 29.9% Major Retail Center 20 0.3% 2,316 12.1%2,336 8.6% Subtotal 470 6.0%9,965 51.9%10,435 38.5% Government Government & Education 67 0.9%660 3.4%727 2.7% Industrial Campus Industrial 274 3.5% 2,142 11.1%2,416 8.9% Heavy Industrial, Special Heavy Industrial, and Sand and Gravel 2,908 36.9% 304 1.6%3,212 11.7% Light Medium Industrial 3,032 38.5% 645 3.4%3,677 13.6% Subtotal 6,214 78.9%3,091 16.1%9,305 34.3% Mixed-Use Commercial Mixed Use 318 4.0% 1,450 7.5%1,768 6.5% Light Med Ind Mixed Use and Medium Density Res Mixed 113 1.4% 169 0.9%282 0.7% Subtotal 431 5.5%1,619 8.4%2,050 7.6% Residential High Density Residential 0 0.0% 456 2.4%456 1.7% Low Density Residential 592 7.5% 2,093 10.9%2,685 9.9% Medium Density Residential 100 1.3% 1,082 5.6%1,182 4.4% Subtotal 692 8.8%3,631 18.9%4,323 16.0% Other Parks and Open Space 0 0.0% 250 1.3%250 0.9% TOTAL 7,874 100.0%19,216 100.0%27,090 100.0% Industrial Commercial Total Attachment 1-111 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 97 Table A-10. Estimated covered employment in non-residential plan designations by type of building, Springfield, 2006 Source: ECONorthwest based on QCEW data Table A-11 shows the distribution of employees by building type and site size in non-residential plan designations in Springfield in 2006. About 22% of Springfield’s employment is on sites 5 to 20 acres, 21% is on sites less than 1-acre, and 19% is on sites greater than 50 acres. Table A-11. Percent of employees by building type and site sizes, Springfield, 2006 Source: ECONorthwest based on QCEW data Note: Total Employees may not add to 100% because of rounding errors. The percent of employees by building type and site size was calculated based on the number of employees in each building type and site size categories using QCEW data and City of Springfield tax lot data. BUSINESS CLUSTERS One way to assess the types of businesses that are likely to have future growth in an area is to examine relative concentration and employment growth of existing businesses. This method of analysis can help determine relationships and linkages within in industries, also called industrial clusters. Sectors that are highly concentrated (meaning there are more than the “average” number of businesses in a sector in a given area) and have had high employment growth are likely to be successful industrial cluster. Sectors with either high concentration of businesses or high employment group may be part of an emerging cluster, with potential for future growth. Building Type Number Percent Number Percent WD 2,457 11% 50 8% GI 4,336 20% 101 17% Office 6,212 28% 192 31% Retail 5,500 25% 220 36% Med/Gov 3,604 16% 49 8%Total 22,109 100% 612 100% FirmsEmployees Building Type Less than 1 1 to 2 2 to 5 5 to 20 20 to 50 Greater than 50 WD 13% 6% 3% 63% 12% 3% 100% GI 15% 17% 17% 18% 2% 31% 100% Office 28% 14% 15% 23% 13% 8% 100% Retail 29% 13% 11% 18% 10% 18% 100% Med/Gov 9% 4% 8% 5% 35% 38% 100% Total 21% 12% 12% 22% 13% 19% 100% Total Employees Site Size (acres) Attachment 1-112 Page 98 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis The Oregon Economic and Community Development Department (OECDD) prepared a report titled “Oregon’s Traded Clusters: Major Industries and Trends.” This report identified 25 clusters in Lane County. • Business Services. This cluster is dominated by Professional, Scientific, and Technical Services and Employment Services. The average annual wage varies by sector, with the highest pay in Professional, Scientific, and Technical Services (about $51,800). Employment growth in these industries was moderate to fast between 2003 and 2005. Business Services firms may be attracted to Springfield as a result of firms located in Springfield, the availability of educated workers within the region, and the high quality of life and access to recreation in Springfield. • Communication Equipment This cluster includes manufacturing and wholesaling of computer, communications, and audio and video equipment. Lane County has clusters of both manufacturing and wholesaling communication equipment but the manufacturing cluster is bigger in the County. Employment growth in the cluster was fastest in computer and peripheral manufacturing between 2003 and 2005. The average annual wage in this sector is higher than the State average, at $68,076. Firms in this cluster may be attracted to Springfield as the City’s location and access to transportation, the availability of educated workers within the region, and the high quality of life and access to recreation in Springfield. • Information Technology. This cluster includes Telecommunications, Software Publishers, and Internet Service Providers. The average annual wage was above State averages. Growth in the cluster varied between 2003 and 2005, with a decrease in Telecommunications employment and increases in employment with Internet Service Providers. Information Technology firms may be attracted to Springfield because of the availability of educated workers within the region and the high quality of life and access to recreation in Springfield. Springfield may be attractive as a location to outsource back-office functions for larger Information Technology firms. • Logistics and Distribution. This cluster includes truck transportation and warehousing. This cluster grew during the 2003- 2005 period, with the greatest growth in Truck Transportation. Wages in this cluster were similar to State averages. Firms in this cluster may be attracted to Springfield as the City’s location relative Attachment 1-113 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 99 to other cities in the Willamette Valley and Oregon and the access to transportation via I-5 and Highway 126. • Medical products. This cluster includes medical and equipment supplies manufacturing. This sector has higher than average wages and had moderate employment growth during the 2003 to 2005 period. Firms may be attracted to Springfield as a result of firms located in Springfield, the availability of educated workers within the region, and the high quality of life and access to recreation in Springfield. • Metals and Related Products. This cluster includes metals manufacturing, including Fabricated Metals Manufacturing and Primary Metals Manufacturing. Although employment decreased in this cluster over the 2003-2005 period, Lane County has the largest cluster of Metal Wholesalers outside of the Portland metropolitan area. Wages in this cluster were general at or above State averages. Firms may be attracted to Springfield as a result of existing businesses and the availability of labor. • Processed Foods and Beverages. This cluster includes manufacturing of food and beverages. Employment in this cluster decreased over the 2003-2005 period and average wages in this cluster are at or below State averages. Firms may be attracted to Springfield as a result of the City’s proximity to food growers and the availability of labor. • Wood and Other Forest Products. This cluster includes wood product manufacturing, logging, paper making, and support activities. The average annual wage was below State averages and employment grew slowly within the cluster over the 2003-2005 period. Firms may be attracted to Springfield as a result of the City’s proximity to natural resources and the availability of labor. Table A-12 shows potential growth sectors in Springfield, based on existing concentrations of employment and the Oregon Employment Department’s (OED) forecast for employment growth over the 2006-2016 period. Sectors with high employment concentration and high growth forecasts are the industries most likely to grow. These sectors are: Health and Social Assistance; Administrative and Support and Waste Management Services; Construction; and Accommodations and Food Services. Springfield may have opportunities for growth in sectors that the OED forecasts will have high growth but Springfield does not currently have Attachment 1-114 Page 100 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis high concentrations in: Arts, Entertainment, and Recreation; Management of Companies and Enterprises; Professional, Scientific, and Technical Services; and Private Educational Services. Table A-12. Potential growth of industries in Springfield Source: Oregon Employment Department; calculations by ECONorthwest REGIONAL BUSINESS ACTIVITY Springfield exists within with Eugene-Springfield regional economy. Springfield is able to attract labor from across the region, Springfield employers and residents benefit from training opportunities present in Eugene (e.g., the University of Oregon and Lane Community College), and Springfield businesses and residents are effected by economic activity within the region. This section presents the large-scale regional business activities. • Peace Health at RiverBend. Peace Health has built a new hospital complex at RiverBend and will complete the transition of staff from the University District facility to RiverBend by the end of Sept. 2008. The RiverBend campus will have 2,500 PeaceHealth employees, in occupations including: physicians, nurses, medical technicians, other medical staff, environmental services staff, and food services staff. PeaceHealth started relocating administrative and other staff to the RiverBend Annex in 2006, which has 700 employees. The RiverBend campus will attract additional firms. For example, Oregon Medical Labs, Oregon Imaging Center, and the Northwest Specialty Clinics will have approximately 350 staff and physicians at the RiverBend campus. The RiverBend Pavilion will have about 300 employees, at the Oregon Medical Group, Oregon Imaging, and other medical businesses. Low Employment Growth Projection for Lane County High Employment Growth Projection for Lane County High Employment Concentration in Springfield (relative to Oregon) Information Health Care & Social Assistance Finance & Insurance Admin. & Support & Waste Mgt Srv. Transportation, Warehousing & Utilities Construction Real Estate & Rental & Leasing Accommodation & Food Srv. Wholesale Trade Low Employment Concentration in Springfield (relative to Oregon) Government Arts, Entertainment, & Recreation Other Srv.Management of Companies & Enterprises Manufacturing Professional, Scientific, & Technical Srv. Retail Private Educational Srv. Agriculture, Forestry, Fishing, & Mining Attachment 1-115 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 101 PeaceHealth plans to further develop the RiverBend campus to include a wide range of uses: a mixture of housing types, office and commercial support services, retail, and educational and research functions to support collaborations with Oregon Health Services University and the University of Oregon. Studies for the RiverBend master plan indicated that there may be demand for additional office development (400,000-500,000 square feet) and commercial retail services (50,000 to 70,000 square feet). • Manufacturing. Manufacturing is important to the economy in Springfield and in Lane County. Manufacturing accounted for 14% of employment (more than 20,000 jobs) in Lane County and 10% of employment (more than 2,700 jobs) in Springfield in 2006. 52 Manufacturing is a traded sector industry, which brings revenue into Oregon and Lane County from outside the State. The following manufacturing industries accounted for two- thirds ($11 billion) of revenue from exports in Oregon in 2007: Computer & Electronic Production, Transportation Equipment, Machinery Manufacturers, Chemical Manufacture, and Primary Metal Manufacturers.53 These industries are all present in Lane County, accounting for 44% of manufacturing employment in the County. Other export industries with substantial employment in Lane County are: Woods Products Manufacturing, Food Manufacturing, and Fabricated Metal Product Manufacturing.54 o Recreational Vehicles. Lane County has a cluster of recreational vehicles (RVs) manufacturers and retailers. Two of Lane County’s largest manufacturers are Monaco Coach and County Coach. Employment in RV manufacturing has declined since 2006 as a result of declining demand for RVs due, in part, to increases in gasoline costs. High energy costs may continue to depress demand for RVs, at least in the next two to five years. 52 Oregon Employment Department 53 “Economic Data Packet, Mary 2008,” Oregon Economic And Community Development Department 54 Oregon Employment Department Attachment 1-116 Page 102 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis o Wood Products and Paper Manufacturing. Manufacturing timber-related products has historically been a source of employment and exports in Lane County. Employment in these industries has declined since the 1980’s but continues to account for more than one-quarter of manufacturing employment in Lane County in 2006. Continued changes create uncertainty for future employment in these industries. For example, Weyerhaeuser, one of Lane County’s largest employers, announced in March 2008 that it was selling several facilities in Oregon and Lane County to International Paper Corporation. It is unclear whether and how this sale will impact employment in paper manufacturing. • Call centers. The trend towards domestic outsourcing of back- office functions has lead several companies to locate call centers in the Eugene-Springfield area. The largest among these call centers is Symantec, located in Springfield. Other recent call centers to locate in the Eugene-Springfield area include Royal Caribbean and Enterprise. The Eugene-Springfield’s trained labor pool of relatively low-cost workers for call centers gives the region an advantage for attracting additional call centers. • Tourism. Tourism brings economic activity into an area from outside sources. Tourism expenditures in Lane County in 2006 grew 7.5%, to $553 million, exceeding the statewide tourism growth rate for the year. Tourism accounts for about 7,500 jobs in Lane County.55 A major source of tourism spending is overnight accommodations. In 2008, the Eugene-Springfield Region has 3,118 total rooms. Since 1997, 629 limited service hotel rooms were added. During the same period, 377 full service rooms, 92 limited service rooms, and 15,464 square feet of meeting space have closed.56 Figure A-5 shows the hotel occupancy rate in the Eugene- Springfield Region from fiscal year 1998 to fiscal year 2008. The Region’s occupancy rate varied from 59% in fiscal year 2002 and 2003 to 72% in fiscal year 2006. 55 Convention & Visitors Association of Lane County Oregon, CVALCO 56 Convention & Visitors Association of Lane County Oregon, CVALCO Attachment 1-117 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 103 Figure A-5. Hotel room occupancy rate, Eugene-Springfield Region, Fiscal Years 1998 to 2008 Source: Convention & Visitors Association of Lane County Oregon, CVALCO Note: 2008 data current through March 2008 Springfield levies a 9.5% transient lodging tax on overnight accommodations. Springfield’s lodging tax rate is 9.5%. Table A-13 shows transient lodging tax revenue for Lane County and Springfield for fiscal year 2000 through 2008. Springfield’s lodging tax revenue varied from $1.2 million in fiscal year 2004 to $1.6 million in fiscal year 2007. Springfield’s transient lodging tax revenues accounted for about one-quarter of total County revenues. Table A-13. Transient lodging tax revenues, Lane County and Springfield, Fiscal Years 2000 to 2008 Source: Convention & Visitors Association of Lane County Oregon, CVALCO Note: 2008 data current through March 2008 • Agriculture. Agricultural production is an important component of Lane County’s economy. In 2002, Lane County had approximately $88 million in total gross sales from agriculture. 0 10 20 30 40 50 60 70 80 97/98 99/00 01/02 03/04 05/06 07/08 Fiscal YearRoom Occupancy Rate Fiscal Year Lane County Springfield 2000 $4,753,583 $1,366,788 29% 2001 $4,834,210 $1,314,714 27% 2002 $4,865,320 $1,265,825 26% 2003 $4,820,662 $1,275,426 26% 2004 $5,095,869 $1,187,367 23% 2005 $5,378,361 $1,242,653 23% 2006 $6,016,364 $1,504,813 25% 2007 $6,611,718 $1,597,994 24% 2008 $5,103,490 $1,235,685 24% Springfield's % of County Attachment 1-118 Page 104 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table A-14 shows the top five agricultural products in Lane County in 1997 and 2002. Lane County’s agriculture products with the greatest value of sales in 2002 were Nursery ($21 million) and Milk & dairy ($10.3 million). Milk & diary had the largest average sales value per farm ($1.1 million), nearly double the 1997 average sales value for dairies in 1997 ($0.6 million). This change may indicate that dairies have grown larger over the five-year period. Other important changes are the decrease in value of sales for poultry and eggs (down $4.2 million) cattle and calves (down $2.2 million). The decrease in sales for cattle and calves may be explained by the decrease of 248 farms with cattle and calves. Table A-14. Six agricultural products with the highest sales value, Lane County 1997 and 2002 Source: USDA Census of Agriculture, 2002; Calculations by ECONorthwest Note: The definition of the following categories of farm products changed between 1997 and 2002: Nursery, greenhouse, floriculture, and sod; Other crops and hay; and vegetables, melons, potatoes, and sweet potatoes. These changes prevent direct comparison between the Total Sales of these agricultural products in 1989 and 2002. OUTLOOK FOR GROWTH IN SPRINGFIELD Table A-15 shows the population forecast developed by the Office of Economic Analysis for Oregon and Lane County for 2000 through 2040. Lane County is forecast to grow at a slower rate than Oregon over the 2005 to 2030 period. The forecast shows Lane County’s population will grow by about 96,600 people over the 25-year period, a 29% increase. Over the same period, Oregon is forecast to grow by more than 1.2 million people, a 35% increase. Item 2002 Total Sales Nursery, greenhouse, floriculture, & sod 21,001,000$ 208 100,966$ Milk & other dairy products from cows 10,290,000$ 9 1,143,333$ Cattle & calves 7,622,000$ 779 9,784$ Fruits, tree nuts, & berries 6,683,000$ 382 17,495$ Vegetables, melons, potatoes, & sweet potatoes 5,955,000$ 155 38,419$ Poultry & eggs 5,919,000$ 218 27,151$ 1997 Total Sales Poultry & eggs 10,074,000$ 144 69,958$ Cattle & calves 9,780,000$ 1,027 9,523$ Milk & other dairy products from cows 7,306,000$ 13 562,000$ Fruits, tree nuts, & berries 6,842,000$ 303 22,581$ Vegetables, melons, potatoes, & sweet potatoes NA NA NA Nursery, greenhouse, floriculture, & sod NA NA NA Value of Sales Farms Average Value of Sales per Farm Attachment 1-119 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 105 Table A-15. State population forecast, Oregon and Lane County, 2000 to 2040 Source: Office of Economic Analysis Note: AAGR is average annual growth rate Table A-16 shows the Oregon Employment Department’s forecast for employment growth by industry for Lane County over the 2006 to 2016 period. The sectors that will lead employment growth in Lane County for the ten-year period are Health Care & Social Assistance (adding 5,600 jobs), Government (adding 3,600 jobs), Professional and Business Services (adding 3,000 jobs), Leisure & Hospitality (adding 2,800 jobs), and Retail Trade (adding 2,400 jobs). Together, these sectors are expected to add 17,400 new jobs or 76% of employment growth in Lane County. Year Oregon Lane County 2000 3,436,750 323,950 2005 3,618,200 333,855 2010 3,843,900 347,494 2015 4,095,708 365,639 2020 4,359,258 387,574 2025 4,626,015 409,159 2030 4,891,225 430,454 2035 5,154,793 451,038 2040 5,425,408 471,511 Amount 1,273,025 96,599 % Change 35% 29% AAGR 1.2% 1.0% Change 2005 to 2030 Attachment 1-120 Page 106 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table A-16. Nonfarm employment forecast by industry in Lane County, 2006-2016 Source: Oregon Employment Department. Employment Projections by Industry 2004-2014. Projections summarized by ECONorthwest. Note: Percent Change was calculated based on the change in employees divided by the number of employees in 2006. For example, Retail trade’s expected percent change is 15% because 2,400 employees is 12% of the 19,700 employees in retail trade in 2006 (2400 divided by 19700 = 15%). Sector / Industry 2006 2016 Amount % Change Natural resources & Mining 900 900 0 0% Construction 8,000 9,200 1,200 15% Manufacturing 20,300 21,000 700 3% Durable Goods 16,300 16,900 600 4% Wood prodcut mfg.4,700 4,500 -200 -4% Transportation equip. mfg. 4,400 4,700 300 7% Nondurable goods 4,000 4,100 100 3% Transportation, & utilities 3,300 3,700 400 12% Wholesale trade 5,900 6,500 600 10% Retail trade 19,700 22,100 2,400 12% Information 3,700 4,100 400 11% Financial activities 8,300 9,300 1,000 12% Professional & business srv. 16,100 19,100 3,000 19% Administrative & support srv. 8,200 9,700 1,500 18% Education 1,500 1,900 400 27% Health care & social assist. 18,100 23,700 5,600 31% Health care 15,400 20,500 5,100 33% Leisure & hospitality 14,200 17,000 2,800 20% Accommodation & food srv. 12,100 14,300 2,200 18% Food srv. & drinking places 10,700 12,700 2,000 19% Other srv.5,100 5,700 600 12% Government 28,400 32,000 3,600 13% Federal government 1,800 1,700 -100 -6% State government 11,300 13,200 1,900 17% State education 8,700 10,200 1,500 17% Local government 15,400 17,100 1,700 11% Local education 8,600 9,300 700 8% Total nonfarm employment 153,400 176,100 22,700 15% Change 2006-2016 Attachment 1-121 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 107 Factors Affecting Future Appendix B Economic Growth in Springfield This appendix presents a detailed analysis consistent with the requirements of OAR 660-009-0015(4) of Springfield’s comparative advantage relative to the Eugene/Springfield area, Lane County, Willamette Valley, and Oregon. The information presented in this appendix is summarized in Chapter 3. WHAT IS COMPARATIVE ADVANTAGE Each economic region has different combinations of productive factors: land (and natural resources), labor (including technological expertise), and capital (investments in infrastructure, technology, and public services). While all areas have these factors to some degree, the mix and condition of these factors vary. The mix and condition of productive factors may allow firms in a region to produce goods and services more cheaply, or to generate more revenue, than firms in other regions. By affecting the cost of production and marketing, comparative advantages affect the pattern of economic development in a region relative to other regions. Goal 9 and OAR 660-009-0015(4) recognizes this by requiring plans to include an analysis of the relative supply and cost of factors of production.57 An analysis of comparative advantage depends on the geographic areas being compared. In general, economic conditions in Springfield will be largely shaped by national and regional economic conditions affecting the Willamette Valley. Chapter 2 and Appendix A present trends and forecasts of conditions in Oregon and Springfield to help establish the context for economic development in Springfield. Local economic factors will help determine the amount and type of development in Springfield relative to other communities in Oregon. This appendix focuses on the comparative advantages of Springfield relative to the rest of Oregon. The implications of the factors that contribute to Springfield’s comparative advantage are discussed at the end of this chapter. 57 OAR 660-009-0015(4) requires assessment of the “community economic development potential.” This assessment must consider economic advantages and disadvantages—or what Goal 9 broadly considers “comparative advantages.” Attachment 1-122 Page 108 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis LOCATION Springfield is a city with a population of approximately 57,320 people in 2007, located in the Southern Willamette Valley. Interstate 5 runs to the west of Springfield and Highway 126 runs east-west through Springfield. Springfield is located between the Willamette River (to the south) and McKenzie River (to the north). Springfield’s location will continue to impact Springfield’s future economic development. • Springfield shares a border with Eugene, the 2nd largest city in the State of Oregon, with a population of approximately 153,690 people in 2007. The Eugene-Springfield Metropolitan Statistical Area (MSA), which includes all of Lane County, had more than 343,000 people in 2007, accounting for 9% of Oregon’s population. • Springfield has easy access to the State’s highway system and other transportation opportunities. Interstate 5 runs to the west of Springfield and Highway 126 is the main east-west route through Springfield. Residents and businesses in Springfield can access other modes of transportation in Eugene, including the Eugene Airport, Greyhound bus service, and passenger rail service. • Residents of Springfield have easy access to shopping, cultural activities, indoor and outdoor recreational activities, and other amenities in Springfield, Eugene, and rural Lane County. • Springfield residents have several opportunities for post-secondary education: the University of Oregon, Lane Community College, Northwest Christian College, and Gutenberg College. Springfield’s location, access to I-5 and Highway 126, and proximity to Eugene are primary comparative advantages for economic development in Springfield. BUYING POWER OF MARKETS The buying power of Springfield and the Eugene-Springfield area forms part of Springfield’s comparative advantage by providing a market for goods and services. Table B-1 shows the combined total expenditures for households in Springfield and the Eugene-Springfield Metropolitan Statistical Area (MSA) in 2008. Households in Springfield are expected to spend about $937 million in 2008, about 14% of total household expenditures in the Eugene-Springfield MSA. Attachment 1-123 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 109 Table B-1. Aggregate annual household expenditures for common purchases, Springfield and the Eugene-Springfield Metropolitan Statistical Area (MSA), 2008 Source: Claritas, 2008 Note: Table B-1 does not include spending on shelter or housing Table B-2 shows average household expenditures for common purchases in Springfield and the Eugene-Springfield MSA in 2008. Springfield households spend an average of $42,700 on commonly purchased items, not including housing, which typically accounts for 20% or more of household expenditures. Springfield’s households spent less than the regional and nation averages, with about 91% of the $47,000 average expenditures for all households in the Eugene-Springfield MSA and 84% of national average household expenditures. Springfield households spent the most on miscellaneous items ($11,800), such as personal care items, education, child care, pet care, and eating out. Transportation accounted for 20% of Springfield household expenditures, food at home accounted for 14%, and entertainment accounted for 11% of expenditures. Compared to household spending for the entire MSA or the nation, Springfield households spent a more on food at home and less on household equipment (e.g., home furnishings and major appliances ) and shelter-related expenses (e.g., household repairs, fuel, and telephone service ) Apparel 78,765,734$ 548,162,423$ 14% Entertainment 106,917,462$ 777,731,151$ 14% Food at Home 135,808,782$ 875,120,493$ 16% Health Care 72,511,784$ 534,882,328$ 14% Household Equipment 48,498,974$ 367,679,233$ 13% Shelter-Related Expenses 49,925,453$ 369,146,828$ 14% Transportation 185,522,716$ 1,304,243,991$ 14% Miscellaneous Items 259,702,794$ 1,890,881,821$ 14% Total 937,653,699$ 6,667,848,268$ 14% Springfield Eugene/ Springfield MSA Springfield % of MSA Spending Attachment 1-124 Page 110 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table B-2. Average annual household expenditures for common purchases, Springfield and the Eugene-Springfield Metropolitan Statistical Area (MSA), 2008 Source: Claritas, 2008 Note: Table B-2 does not include spending on shelter or housing, which typically accounts for 20% or more of household expenditures. Note: The Percent of Total does not add to 100% as a result of rounding errors. AVAILABILITY OF TRANSPORTATION FACILITIES Businesses and residents in Springfield have access to a variety of modes of transportation: automotive (Interstate 5, multiple State highways, and local roads); rail (Union Pacific and Amtrak); transit (LTD); and air (Eugene Airport). Springfield has excellent automotive access for commuting and freight movement. Springfield is located along Interstate 5, the primary north- south transportation corridor on the West Coast, linking Springfield to domestic markets in the United States and international markets via West Coast ports. Springfield has developed along Highway 126, connecting Springfield to rural areas to the East of Springfield. Highway 126 is the primary east-west highway in Lane County, running from Florence to Redmond. Businesses and residents of Springfield also have access to Highway 99 in Eugene and Highway 58 in Pleasant Hill. Other transportation options in Springfield are: • Rail. Multiple Union Pacific rail lines serve Springfield, providing freight service. There are two primary junctions in Springfield: (1) the Springfield Junction is located in the Glenwood area in Southwest Springfield and (2) the Mohawk Junction is near the city’s southern boundary, near 25th St. • Transit. The Lane Transit District (LTD) provides transit service to the Eugene-Springfield region. LTD serves Springfield with multiple bus lines, providing bus service within Springfield and Expenditures % of Total E/S MSA U.S Apparel 3,589$ 8% 3,869$ 93% 77% Entertainment 4,871$ 11% 5,490$ 89% 84% Food at Home 6,187$ 14% 6,177$ 100% 98% Health Care 3,304$ 8% 3,775$ 88% 77% Household Equipment 2,210$ 5% 2,595$ 85% 76% Shelter-Related Expenses 2,275$ 5% 2,606$ 87% 75% Transportation 8,452$ 20% 9,206$ 92% 90% Miscellaneous Items 11,832$ 28% 13,347$ 89% 80% Total 42,720$ 100% 47,065$ 91% 84% Eugene/ Springfield MSA Springfield Households Springfield's Expenditures Compared to: Attachment 1-125 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 111 connecting Springfield with Eugene. LTD recently began operating a bus rapid transit (BRT) system, called EmX, which provides service between Springfield Station and Eugene Station. Construction is underway for the new Pioneer Parkway BRT route, which will connect to the Sacred Heart Medical Center, and the Gateway Mall. • Air. The Eugene Airport provides both passenger and freight service for Eugene and Springfield residents. The airport is the second busiest in the state, and the fifth largest in the Pacific Northwest. The airport is served by five commercial airlines, and is the primary airport for a six county region. Transportation is a comparative advantage that primarily affects the overall type of employment and its growth for the region. PUBLIC FACILITIES AND SERVICES Provision of public facilities and services can impact a firm’s decision on location within a region but ECO’s past research has shown that businesses make locational decisions primarily based on factors that are similar with a region. These factors are: the availability and cost of labor, transportation, raw materials, and capital. The availability and cost of these production factors are usually similar within a region. Once a business has chosen to locate within a region, they consider the factors that local governments can most directly affect: tax rates, the cost and quality of public services, and regulatory policies. Economists generally agree that these factors do affect economic development, but the effects on economic development are modest. Thus, most of the strategies available to local governments have only a modest affect on the level and type of economic development in the community. PUBLIC POLICY Public policy can impact the amount and type of economic growth in a community. The City can impact economic growth through its policies about the provision of land, redevelopment, and infill development. Success at attracting or retaining firms may depend on availability of attractive sites for development, especially large sites. For example, Springfield was attractive as a location of PeaceHealth’s new hospital because the City had a large, relatively flat site located relatively near to Interstate 5 and Beltline Highway. Springfield’s decisionmakers articulated their support for provision of employment land through the economic development strategy and in Attachment 1-126 Page 112 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis other policy choices. Objectives in the economic development strategy supporting the provision of employment land include objectives to: (1) provide employment land in a variety of locations, configurations, and site sizes for industrial and other employment uses, (2) provide an adequate competitive short-term supply of suitable land to respond to economic development opportunities as they arise, (3) reserve sites over 20-acres for special developments and industries that require large sites, and (4) provide adequate infrastructure to sites. The economic development strategy also includes objectives that support redevelopment of existing land within the UGB, especially in Downtown and in Glenwood, and other infill development opportunities. In addition, the City has established financial mechanisms to support redevelopment through the creation of the Glenwood Urban Renewal District and Downtown Urban Renewal District. TAX POLICY The tax policy of a jurisdiction is a consideration in economic development policy. Table B-3 shows that Springfield’s property tax rate is between $16.32 and $18.65 per $1,000 of assessed value, compared with a state average of $15.20. The property tax rate in Eugene is more variable than Springfield’s, ranging from $10.31 to $24.68 per $1,000 of assessed value. 58 Table B-3. Property tax rate per $1,000 assessed value for Springfield, Eugene, and Oregon, 2007. Source: Oregon Department of Revenue WATER Springfield’s water provider is the Springfield Utility Board (SUB). Springfield’s primary source of water is wells, supplemented by surface water from the Middle Fork of the Willamette River. Springfield has 33 58 Property tax rates for Springfield and Eugene are a composite of the rates for all properties with an address in Eugene or Springfield. It is almost certain that some of these properties is located outside of both the Eugene and Springfield urban growth boundaries and are subject to unincorporated Lane County tax rates. Area Tax Rate (per $1,000 assessed value) Oregon $15.20 Lane County $15.47 Springfield $16.32 - $18.65 Eugene $10.31 - $24.68 Attachment 1-127 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 113 wells in 7 well fields, which provide the majority of Springfield’s water. SUB has purchased rights to water from the McKenzie River, to supply future need for water. Springfield’s water treatment plant is located on the Middle Fork of the Willamette River, which provides water treatment for the city. The water treatment plant is at or near capacity, with peak summer residential and commercial irrigation demands exceeding the plant’s capacity at times. SUB is addressing peak demands by educating customers peak shifting, the practice of irrigating landscaping in the evening or at night. SUB is planning upgrades to the water treatment plant in 2008 and 2009 to address issues meeting demand at peak times. SUB is also planning upgrades double the plant’s capacity in 2010. Springfield plans to build two additional water treatment plants on the McKenzie River, as demand for water increases. SUB expects to need the new treatment plants by 2013 to 2018. SUB has sufficient water to meet expected growth and be able to meet residential and employment needs. SUB is not concerned about its ability to supply water to any type of industry, including water-intensive industries like food processing. SUB has lower water rates than the national average. The combination of available and lower cost water may be an advantage to attracting some types of businesses to Springfield. WASTEWATER Springfield’s wastewater services are provided by Metropolitan Wastewater Management Commission (MWMC), which operates a wastewater facility that serves Springfield, Eugene, and Lane County. Springfield’s wastewater system, which includes the sanitary sewer and other equipment, is managed by Springfield Public Works. Springfield is about to meet current wastewater demands, except in instances of heavy rainfall. On dry days, Springfield generates about 6 million gallons of wastewater per day. During heavy rainfall, Springfield can generate 100 million gallons of wastewater per day, as a result of infiltration and inflow into wastewater pipes. Springfield recently completed an update of the Wastewater Master Plan, which identified $65 million of upgrades to the system, which will provide service to unserviced areas in Springfield and address problems with infiltration and inflow into wastewater pipes. Springfield expects to be able to meet expected growth. The City expects to provide service to 6,100 new equivalent dwelling units, which includes Attachment 1-128 Page 114 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis residences and businesses, over the next 20 years. If Springfield needs to expand its urban growth boundary, the City will need to plan how to provide service to the new areas. LABOR MARKET FACTORS The availability of labor is critical for economic development. Availability of labor depends not only on the number of workers available, but the quality, skills, and experience of available workers as well. This section examines the availability of workers for Springfield. The labor force in any market consists of the adult population (16 and over) who are working or actively seeking work. The labor force includes both the employed and unemployed. Children, retirees, students, and people who are not actively seeking work are not considered part of the labor force. According to the 2000 Census, Lane County has more than 166,000 people in its labor force, with 16% of the County’s labor force located in Springfield (27,000 participants in the labor force). The unemployment rate is one indicator of the relative number of workers who are actively seeking employment. Labor force data from the Oregon Employment Department shows that unemployment in Lane County 6.1% in February 2008, lower than the State average of 6.3%. Figure B-1 shows the unemployment rate for Lane County, Oregon, and the United States for the past decade. During this period, Lane County’s unemployment has been very similar to the statewide unemployment rate. The County and State unemployment rates have been consistently higher than the national average, but the difference has decreased in recent years. Attachment 1-129 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 115 Figure B-1. Unemployment rates for Lane County, Oregon, and the U.S., January 1998 to February 2008 Source: Bureau of Labor Statistics Note: unemployment data is not seasonally adjusted Another important factor in the labor force is the distance that workers are willing to commute. Figure B-2 shows a comparison of the commute time to work for residents 16 years and older for Oregon, Lane County, Eugene, and Springfield in 2008. Springfield residents were more likely to have a commute of between 15 and 29 minutes than residents of the State, County, or Eugene. About 46% of Springfield residents commute 15 to 29 minutes, compared with the 36% of State residents, 39% of County residents, and 38% of Eugene’s residents. U.S.Oregon Lane County Attachment 1-130 Page 116 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Figure B-2. Commuting time to work in minutes for residents 16 years and older, Oregon, Lane County, Eugene, and Springfield, 2008 Source: Claritas 2008 Figure B-3 and Table B-4 show where residents of Springfield work in 2004. Figure B-3 and Table B-4 show that 81% of Springfield’s residents were employed in Lane County, with 40% of Springfield’s residents working in Eugene and 25% working in Springfield. Close to 1,000 Springfield workers (4%) commute to Multnomah County, the majority of who work in Portland. 0% 10% 20% 30% 40% 50% Worked at home Less than 15 15-29 30-44 45-59 60 or more Travel Time to Work (minutes)Percent of Population Age 16+ Oregon Lane County Springfield Eugene Attachment 1-131 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 117 Figure B-3. Places that residents of Springfield were employed, 2004 Source: U.S. Census Bureau: LED on the Map Table B-4. Places that residents of Springfield were employed, 2004 Source: U.S. Census Bureau: LED on the Map Figure B-4 and Table B-5 show where employees of firms located in Springfield lived in 2004. Seventy-nine percent of Springfield’s workers lived in Lane County. Twenty-nine percent lived in Springfield, and 23% lived in Eugene. About 27% of Springfield’s workers lived in unincorporated areas of Lane County and 21% lived outside of Lane County. Location Number Percent Lane County 18,649 81% Eugene 9,261 40% Springfield 5,675 25% Coburg 638 3% Junction City 475 2% Multnomah Co.975 4% Portland 839 4% All Other Locations 3,385 15% Total 23,009 100% Attachment 1-132 Page 118 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Figure B-4. Places where workers in Springfield lived, 2004 Source: U.S. Census Bureau: LED on the Map Table B-5. Places where workers in Springfield lived, 2004 Source: U.S. Census Bureau: LED on the Map Educational attainment is an important labor force factor because firms need to be able to find educated workers. Figure B-5 shows the share of population by education level completed in Springfield and Lane County in 2007. In 2007, Springfield had a smaller share of residents with an associate’s degree or higher (26%) than residents of Lane County (37%). In comparison, 47% of Eugene’s residents have an associate’s degree or higher. Location Number Percent Lane County 15,341 79% Springfield 5,675 29% Eugene 4565 23% All Other Locations 4,112 21% Linn County 537 3% Marion County 428 2% Jackson County 409 2% Other locations 2,738 14% Total 19,453 100% Attachment 1-133 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 119 Figure B-5. Educational attainment for the population 25 years and over, Oregon, Lane County, and Springfield, 2007 Source: OregonProspector.com Opportunities for workforce training and post-secondary education for residents of the Eugene-Springfield area include: the University of Oregon, Lane Community College, Northwest Christian College, and Gutenberg College. Table B-6 shows changes in ethnicity Oregon, Lane County, and Springfield between 1990, 2000, and 2008. This table shows that the Springfield has a larger share of Hispanic or Latino residents than Lane County 2000, with 6.6% of residents in Springfield were Hispanic compared to the County average of 4.6%. Between 1990 and 2000, Springfield’s Hispanic and Latino population grew by 168% (2,176 people), compared with growth in the Hispanic and Latino population of 117% in Lane County and 144% in Oregon. In 2008, Hispanic residents accounted for about 11% of Oregon’s population and 6% of Lane County’s population. Springfield’s Hispanic population grew by 95% between 2000 and 2008, more than twice the rate of growth for the County or State during the same period. 0% 5% 10% 15% 20% 25% 30% 35% Less than 9th grade 9th to 12th grade, no diploma High school graduate (includes equivalency) Some college, no degree Associate degree Bachelor's degree Graduate or professional degree Educational AttainmentPercent of Population Age 25+ Lane County Springfield Attachment 1-134 Page 120 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table B-6. Changes in ethnicity, Oregon, Lane County, and Springfield, 1990, 2000, and 2008 Source: U.S. Census 1990 and 2000, Claritas 2008 Commuting is common in Springfield. About 40%of the people who live in Springfield commute to Eugene for work. Less than one-third of Springfield’s workers live in Springfield. The implication of this workforce analysis is that, while only one-third of Springfield’s workforce lives within the City, Springfield are able to attract educated workers from most of Eugene and surrounding areas in Lane county. It does not appear that workforce will be a constraint on employment growth in Springfield. Springfield should be able to continue to draw on residents of Eugene for workers, even if energy prices continue to rise but Springfield’s ability to attract workers from outside of the Eugene- Springfield area may be negatively impacted by continued increases in energy prices. Oregon Lane County Springfield 1990 Total Population 2,842,321 282,912 44,683 Hispanic or Latino 112,707 6,852 1,299 Percent Hispanic or Latino 4.0% 2.4% 2.9% 2000 Total Population 3,421,399 322,959 52,729 Hispanic or Latino 275,314 14,874 3,475 Percent Hispanic or Latino 8.0% 4.6% 6.6% 2008 Total Population 3,772,854 343,961 56,016 Hispanic or Latino 400,435 20,941 5,293 Percent Hispanic or Latino 10.6% 6.1% 9.4% Change 1900-2000 Hispanic or Latino 162,607 8,022 2,176 Percent Hispanic or Latino 144% 117% 168% Change 2000-2008 Hispanic or Latino 125,121 6,067 1,818 Percent Hispanic or Latino 45% 41% 52% Attachment 1-135 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 121 Employment Forecast and Site Needs for Industrial Appendix C and other Employment Uses This appendix presents a detailed analysis of Springfield’s site needs consistent with the requirements of OAR 660-009-0015(2) and of OAR 660- 009-0025(1). This appendix includes an employment forecast and an analysis of site needs to accommodate industrial and other employment uses in Springfield for the 2010 to 2030 period. The information presented in this appendix is summarized in Chapter 4. EMPLOYMENT FORECAST To provide for an adequate supply of commercial and industrial sites consistent with plan policies, Springfield needs an estimate of the amount of commercial and industrial land that will be needed over the planning period. Goal 9 requires cities identify “the number of sites by type reasonably expected to be needed to accommodate the expected employment growth based on the site characteristics typical of expected uses.” The number of needed sites is dependent on the site requirements of employers. The estimate of land need is presented in the site needs analysis in the next section. Demand for commercial and industrial land will be driven by the expansion and relocation of existing businesses and new businesses locating in Springfield. The level of this business expansion activity can be measured by employment growth in Springfield. This section presents a projection of future employment levels in Springfield for the purpose of estimating demand for commercial and industrial land. The projection of employment has three major steps: 1. Establish base employment for the projection. We start with the estimate of covered employment in Springfield’s UGB presented in Chapter 3. Covered employment does not include all workers, so we adjust covered employment to reflect total employment in Springfield. 2. Project total employment. The projection of total employment will be calculated using the safe harbor method suggested in OAR 660-024. Attachment 1-136 Page 122 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis 3. Allocate employment. This step involves allocating employment to different building types, based on similar requirements for built space. EMPLOYMENT BASE FOR PROJECTION To forecast employment growth in Springfield, we must start with a base of employment growth on which to forecast. Table C-1 shows ECO’s estimate of total employment in the Springfield UGB in 2006. To develop the figures, ECO started with estimated covered employment in the Springfield UGB from confidential QCEW (Quarterly Census of Employment and Wages) data provided by the Oregon Employment Department. Covered employment, however, does not include all workers in an economy. Most notably, covered employment does not include sole proprietors. Analysis of data shows that covered employment reported by the Oregon Employment Department for Lane County is only about 74% of total employment reported by the U.S. Department of Commerce. We made this comparison by sector for Lane County and used the resulting ratios to convert covered employment to total employment in Springfield. Table C-1 shows Springfield had an estimated 36,706 employees within its UGB in 2006. This figure results in a population-to-employment ratio of 1.7 persons per employee. The statewide average is about 1.9 persons per employee. Attachment 1-137 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 123 Table C-1. Estimated total employment in the Springfield UGB by sector, 2006 Source: 2005 covered employment from confidential Quarterly Census of Employment and Wage (QCEW) data provided by the Oregon Employment Department. Covered employment as a percent of total employment calculated by ECONorthwest using data for Lane County employment from the U.S. Department of Commerce, Bureau of Economic Analysis (total) and the Oregon Employment Department (covered). The employment forecast covers the 2010 to 2030 period, requiring an estimate of total employment for Springfield in 2008. Since 2006, Springfield has had one major change in employment, beyond expected employment growth: PeaceHealth has built a new regional medical center at RiverBend. PeaceHealth estimates that there will be approximately 3,400 new employees in Springfield in 2008 as a result of the hospital at RiverBend. ECO estimates that Springfield has 37,733 employees in 2008, plus the 3,400 employees at RiverBend. The result is an employment base of 41,133 total employees in Springfield in 2008. EMPLOYMENT PROJECTION OAR 660-024-0040 (8) (a) (A) allows the City to determine employment land needs based on “The county or regional job growth rate provided in the most recent forecast published by the Oregon Employment Department.” Springfield is part of Region 5, which includes all of Lane County. Based on this safe harbor, employment in Springfield can be assumed to grow at 1.4% annually. Table C-2 shows the result of applying Sector Number % of Total Emp. Agriculture, Forestry, Fishing, & Mining 282 73% 387 Construction 1,922 65% 2,973 Manufacturing 2,714 99% 2,750 Wholesale Trade 1,230 85% 1,446 Retail 3,632 79% 4,609 Transportation & Warehousing & Utilities 941 70% 1,349 Information 1,356 79% 1,710 Finance & Insurance 1,110 66% 1,673 Real Estate & Rental & Leasing 441 33% 1,341 Professional, Scientific, & Technical Services 576 52% 1,107 Management of Companies & Enterprises 343 97% 354 Admin. & Support & Waste Mgt Services 2,460 76% 3,239 Private Educational Services 109 38% 290 Health Care & Social Assistance 3,069 77% 4,008 Arts, Entertainment, & Recreation 321 41% 777 Accommodation & Food Services 2,453 91% 2,686 Other Services 816 48% 1,685 Government 3,535 82% 4,322 Total 27,310 74% 36,706 Estimated Total Employment Covered Employment Attachment 1-138 Page 124 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis this growth rate to the total employment base of 41,133 in Springfield. Table C-2 shows that employment is forecast to grow by 13,440 employees (a 32% increase) between 2010 and 2030. Table C-2. Employment growth in Springfield’s UGB, 2010–2040 Source: ECONorthwest Springfield is part of the regional economic center in the Eugene- Springfield region. The ratio of population to employment will decrease from 1.6 to 1.5 people per job between 2010 and 2030. This change shows that employment will grow faster than population in Springfield, suggesting that some Springfield will continue to have employees who commute from Eugene or other cities in the region. ALLOCATE EMPLOYMENT TO DIFFERENT BUILDING TYPES The next step in the employment forecast is to allocate future employment to building type, as described in Table A-8 in Appendix A. The allocation was done by grouping employment into building types with similar building and site requirements. For example, the following service sectors were grouped together into the “office” building type because they need similar types of built space with similar site requirements: information, finance, real estate, professional services, management of companies, administrative support, utilities, arts and entertainment, and other services. Year Total Employment 2008 41,133 2010 42,284 2030 55,724 2030 55,724 2031 56,498 2032 57,283 2033 58,079 2034 58,886 2035 59,704 2036 60,534 2037 61,375 2038 62,228 2039 63,093 2040 63,970 Change 2010 to 2030 Employees 13,440 Percent 32% AAGR 1.4% Attachment 1-139 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 125 Table C-3 shows the forecast of employment growth by building type in Springfield’s UGB in 2030. Table C-3 shows the amount of employment by building type in 2010. In 2010, a total of about 60% of Springfield’s employment is in office and other services’ building types. About 18% is in retail, 15% is in general industrial and 7% is in warehousing and distribution. Table C-3. Forecast of employment growth in by building type, Springfield UGB, 2010–2030 Source: ECONorthwest Note: Green shading denotes an assumption by ECONorthwest The forecast in Table C-3 assumes that Springfield will have growth in all categories of employment. It also assumes that the share of employment will increase in other services (2.2% increase in share) and office (1.3% increase in share). At the same time, the share of employment will decrease in general industrial (1.8% decrease in share), warehousing and distribution (1.0% decrease in share), and retail (0.7% decrease in share). In terms of jobs, employment will increase in all of these sectors. The assumptions about the changes in share of all employment are based on the following considerations: • Increase in the share of employment in office and other services. Springfield’s target industries are predominantly office and other services, such as medical services, services for seniors, call centers, back office functions, high tech, professional services, corporate headquarters, and other services. The forecast assumes that these industries will grow faster than other employment in Springfield. • Decrease in employment in other categories. The decreases in employment in other categories is based on the following factors: o While Springfield expects that general industrial will grow, the City expects industrial employment will grow slower than all employment in the City. This expectation is based Building Type Employment % of Total Employment % of Total Industrial Warehousing & Distribution 2,954 7.0% 3,343 6.0% 389 General Industrial 6,457 15.3% 7,523 13.5% 1,066 Commercial Office 12,561 29.7% 17,274 31.0% 4,713 Retail 7,709 18.2% 9,752 17.5% 2,043 Other Services 12,603 29.8% 17,832 32.0% 5,229 Total 42,284 100.0% 55,724 100.0% 13,440 2010 2030 Change 2010 to 2030 Attachment 1-140 Page 126 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis on the target industries that Springfield has identified and the Oregon Employment Department’s forecast for employment growth in Lane County for 2006 to 2016. o Springfield expects that employment in warehousing and distribution will grow but slower than all employment because Springfield is at a disadvantage for siting warehouse and distribution firms. These firms need sites that have easy access to I-5 and flat sites of 20 or more acres. There are relatively few sites in or around Springfield that meet these criteria. o Employment in retail will grow with population. Springfield expects that retail will grow slightly slower than all employment. This assumption is based on the expectation that Springfield’s target industries will grow faster than overall employment growth, including retail employment. It is worth noting that the employment projections in this appendix do not take into account a major jump in employment that could result from the location of one or more large employers in the community during the planning period. This could take place if the City were successful in its recruitment efforts, either on its own and/or in conjunction with the Governors Initiative to bring new industry to the State. PeaceHealth and Symantec are examples of such events. Such a major change in the community’s employment would essentially be over and above the growth anticipated by the City’s employment forecast and the implied land needs (for employment, but also for housing, parks and other uses). Major economic events such as the successful recruitment of a very large employer are very difficult to include in a study of this nature. The implications, however, are relatively predictable: more demand for land (of all types) and public services. SITE NEEDS OAR 660-009-0015(2) requires the EOA identify the number of sites, by type, reasonably expected to be needed for the 20-year planning period. Types of needed sites are based on the site characteristics typical of expected uses. The Goal 9 rule provides flexibility in how jurisdictions conduct and organize this analysis. For example, site types can be described by plan designation (i.e., heavy or light industrial), they can be by general size categories that are defined locally (i.e., small, medium, or large sites), or it can be industry or use-based (i.e., manufacturing sites or distribution sites). Attachment 1-141 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 127 Firms wanting to expand or locate in Springfield will be looking for a variety of site and building characteristics, depending on the industry and specific circumstances. Previous research conducted by ECO has found that while there are always specific criteria that are industry-dependent and specific to a firm, many firms share at least a few common site criteria. In general, all firms need sites that are relatively flat, free of natural or regulatory constraints on development, with good transportation access and adequate public services. The exact amount, quality, and relative importance of these factors vary among different types of firms. This section discusses the site requirements for firms in industries with growth potential in the Eugene-Springfield Region, as indicated by the Oregon Employment Department forecast shown in Table A-12. FACTORS THAT AFFECT LOCATIONAL DECISIONS Why do firms locate where they do? There is no single answer—different firms choose their locations for different reasons. Key determinates of a location decision are a firm’s factors of production. For example, a firm that spends a large portion of total costs on unskilled labor will be drawn to locations where labor is relatively inexpensive. A firm with large energy demands will give more weight to locations where energy is relatively inexpensive. In general, firms choose locations they believe will allow them to maximize net revenues: if demand for goods and services is held roughly constant, then revenue maximization is approximated by cost minimization. The typical categories that economists use to describe a firm’s production function are: • Labor. Labor is often and increasingly the most important factor of production. Other things equal, firms look at productivity—labor output per dollar. Productivity can decrease if certain types of labor are in short supply, which increases the costs by requiring either more pay to acquire the labor that is available, the recruiting of labor from other areas, or the use of the less productive labor that is available locally. Based on existing commuting patterns, Springfield has access to labor from the Eugene-Springfield Region. • Land. Demand for land depends on the type of firm. Manufacturing firms need more space and tend to prefer suburban locations where land is relatively less expensive and less difficult to develop. Warehousing and distribution firms need to locate close to interstate highways. Attachment 1-142 Page 128 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis • Local infrastructure. An important role of government is to increase economic capacity by improving quality and efficiency of infrastructure and facilities, such as roads, bridges, water and sewer systems, airport and cargo facilities, energy systems, and telecommunications. • Access to markets. Though part of infrastructure, transportation merits special attention. Firms need to move their product, either goods or services, to the market, and they rely on access to different modes of transportation to do this. Springfield’s access to I-5 and Highway 126 provide the City with advantages in attracting businesses that need easy access to highways but do not need to ship large volumes of freight by truck. • Materials. Firms producing goods, and even firms producing services, need various materials to develop products that they can sell. Some firms need natural resources: lumber manufacturing requires trees. Or, farther down the line, firms may need intermediate materials: for example, dimensioned lumber to build manufactured housing. • Entrepreneurship. This input to production may be thought of as good management, or even more broadly as a spirit of innovation, optimism, and ambition that distinguishes one firm from another even though most of their other factor inputs may be quite similar. The supply, cost, and quality of any of these factors obviously depend on market factors: on conditions of supply and demand locally, nationally, and even globally. But they also depend on public policy. In general, public policy can affect these factors of production through: • Regulation. Regulations protect the health and safety of a community and help maintain the quality of life. Overly burdensome regulations, however, can be a disincentive for businesses to locate in a community. Simplified bureaucracies and straightforward regulations can reduce the burden on businesses and help them react quickly in a competitive marketplace. • Taxes. Firms tend to seek locations where they can optimize their after-tax profits. Studies show that tax rates are not a primary location factor within a region—they matter only after businesses have made decisions based on labor, transportation, raw materials, and capital costs. The cost of these production factors is usually similar within a region. Therefore, differences in tax levels across Attachment 1-143 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 129 communities within a region are more important in the location decision than are differences in tax levels between regions. • Financial incentives. Governments can offer firms incentives to encourage growth. Studies have shown that most types of financial incentives have had little significant effect on firm location between regions. For manufacturing industries with significant equipment costs, however, property or investment tax credit or abatement incentives can play a significant role in location decisions. Incentives are more effective at redirecting growth within a region than they are at providing a competitive advantage between regions. This discussion may suggest that a location decision is based entirely on a straight-forward accounting of costs, with the best location being the one with the lowest level of overall costs. Studies of economic development, however, have shown that location decisions depend on a variety of other factors that indirectly affect costs of production. These indirect factors include agglomerative economies (also known industry clusters), quality of life, and innovative capacity. • Industry clusters. Firms with similar business activities can realize operational savings when they congregate in a single location or region. Clustering can reduce costs by creating economies of scale for suppliers. For this reason, firms tend to locate in areas where there is already a presence of other firms engaged in similar or related activities. • Quality of life. A community that features many quality amenities, such as access to recreational opportunities, culture, low crime, good schools, affordable housing, and a clean environment can attract people simply because it is a nice place to be. A region’s quality of life can attract skilled workers, and if the amenities lure enough potential workers to the region, the excess labor supply pushes their wages down so that firms in the region can find skilled labor for a relatively low cost. The characteristics of local communities can affect the distribution of economic development within a region, with different communities appealing to different types of workers and business owners. Sometimes location decisions by business owners are based on an emotional or historical attachment to a place or set of amenities, without much regard for the cost of other factors of production. • Innovative capacity. Increasing evidence suggests that a culture promoting innovation, creativity, flexibility, and adaptability is Attachment 1-144 Page 130 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis essential to keeping U.S. cities economically vital and internationally competitive. Innovation is particularly important in industries that require an educated workforce. High-tech companies need to have access to new ideas typically associated with a university or research institute. Innovation affects both the overall level and type of economic development in a region. Government can be a key part of a community’s innovative culture, through the provision of services and regulation of development and business activities that are responsive to the changing needs of business. Table C-4 provides a summary of production factors in Springfield as well as comments on local opportunities and constraints. It also discusses implications of each factor for future economic development in Springfield. Attachment 1-145 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 131 Table C-4. Summary of production factors and their implications for Springfield Category Opportunities Challenges Implications Labor • Access to labor from the across the Eugene-Springfield Region • Existing workforce has lower educational attainment than regional averages • Potential difficulty in finding dependable labor for manufacturing jobs The City has access to labor from the region. As the City adds more high-end, expensive houses, the City is likely to attract a more educated workforce. Commuting patterns may be negatively impacted by increases in energy prices. The impact is likely to be less in the immediate Eugene-Springfield area but is likely to be greater for commuters that live further from Eugene and Springfield. Land • Opportunities for redevelopment and infill development, especially in Downtown and Glenwood • Lack of large parcels of land near highways • Cost of land • Short-term availability Firms that prefer large, undeveloped parcels near highways are unlikely to locate in Springfield under current conditions, such or manufacturers that require freight access. Local infrastructure • Proximity to I-5 and Highway 126 and availability of freight shipping by rail • Opportunities for transportation via transit, bicycle, and pedestrian • Capacity of water and wastewater systems • Cost of providing infrastructure Springfield has sufficient local infrastructure to attract and retain businesses. Access to markets • Proximity to I-5 and Highway 126 and availability of freight shipping by rail • Proximity to Eugene Airport for transportation of people and small quantities of goods • Lack of sites with good transportation access, especially to I-5 Springfield’s highway and rail access is sufficient to attract firms that need access to markets via highways. Springfield is relatively unlikely to attract firms that need to move large quantities of freight via trucks on I-5. Materials • Proximity to natural resources (e.g., timber or agricultural products) • Access to multiple rail lines • Cost of shipping raw and finished products Springfield may be attractive to manufacturers that need access to natural resources. However, firms dependant on highway access to transport large quantities of materials may not locate in Springfield until infrastructure needs are addressed. Attachment 1-146 Page 132 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Category Opportunities Challenges Implications Entrepreneurship • Proximity of the University of Oregon • Quality of life • Springfield’s image as having a “blue collar” business environment. Springfield may be attractive to entrepreneurs who value the City’s quality of life attributes, access to outdoor recreation, and other locational attributes. Springfield has opportunities to encourage entrepreneurship through continued improvement of the City’s image and through attracting more professional jobs, such as the developing medical cluster. Regulation • Pro-business attitudes among City officials and leaders • Ability to craft regulations that are conducive to business • High Systems Development Charges (SDCs) The City has the opportunity to develop a regulatory framework that can promote economic activity through economic development policies, plans for providing infrastructure, and provision of a variety of housing types. Taxes • Property taxes are comparable to Eugene • Comparatively high System Development Charges (SDCs) Springfield needs revenue sources for providing public services and infrastructure, just as other cities do. The City has options about how to raise these funds: through property taxes, development fees, and other fees to taxes. Industry clusters • Presence of a developing medical cluster and existing call center cluster • Opportunities for development of other clusters • Availability of sites • Transportation access • Labor availability Springfield may be able to build employment in existing clusters, especially the developing medical cluster. Springfield has opportunities to develop other clusters, such as high-tech or small scale manufacturing. Quality of life • High quality of life, including access to recreation, proximity to cultural amenities in Eugene, regional shopping opportunities and environmental quality • Growth management challenges, such as balancing development with protection of environmental quality Springfield’s policy choices will affect the City’s quality of life, such as decisions regarding development of natural areas, housing policies, or policies that lead to redevelopment of downtown. Attachment 1-147 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 133 Category Opportunities Challenges Implications Innovative capacity • Educated regional workforce • Existing professional and business service firms • Proximity to the University of Oregon • Existing businesses, clusters, and innovators in the Region • Attracting and retaining good workers in the region • Availability of higher-end housing and cultural amenities to attract creative class workers Government can be a key part of a community’s innovative culture, through the provision of services and regulation of development and business activities that are responsive to the changing needs of business. Attachment 1-148 Attachment 1-149 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 135 CHARACTERISTICS OF SITES NEEDED TO ACCOMMODATE EMPLOYMENT GROWTH Table C-5 summarizes the lot sizes typically needed for firms in selected industries. The emphasis in Table C-5 is on new large firms that have the most potential to generate employment growth. For example, while the number of convenience stores in the region is likely to grow, the site needs for these stores is not included in Table C-5 because they are unlikely to generate substantial employment growth. Large food stores, which are typically 50,000 to 100,000 sq. ft. in size, are more likely to generate substantial employment growth in the region, and these stores require sites of 5 to 10 acres. Table C-5. Typical lot size requirements for firms in selected industries Source: ECONorthwest. More specific site needs and locational issues for firms in potential growth industries include a range of issues. Table C-6 summarizes site needs and key issues related to sites in Springfield. Industry Lot Size (acres) Manufacturing Printing & Publishing 5 - 10 Stone, Clay & Glass 10 - 20 Fabricated Metals 10 - 20 Industrial Machinery 10 - 20 Electronics - Fab Plants 50 - 100 Electronics - Other 10 - 30 Transportation Equipment 10 - 30 Transportation & Wholesale Trade Trucking & Warehousing varies Retail Trade General Merchandise & Food Stores 5-10 Eating & Drinking Places 0.5-5 FIRE & Services Non-Depository Institutions 1 - 5 Business Services 1 - 5 Health Services 1 - 10 Engineering & Management 1 - 5 Attachment 1-150 Page 136 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table C-6. Summary of site requirements Site Attribute Comments Flat sites. Flat topography (slopes with grades below 10%) is needed by almost all firms in every industry except for small Office and Commercial firms that could be accommodated in small structures built on sloped sites. Flat sites are particularly important for Industrial firms in manufacturing, trucking, and warehousing, since these firms strongly prefer to locate all of their production activity on one level with loading dock access for heavy trucks. The BLI excluded lands with slopes over 15%. Some available sites in the Glenwood area have slopes that exceed 5% which may be inappropriate for some employment uses. Parcel configuration and parking. Large Industrial and Commercial firms that require on-site parking or truck access are attracted to sites that offer adequate flexibility in site circulation and building layout. Parking ratios of 0.5 to 2 spaces per 1,000 square feet for Industrial and 2 to 3 spaces per 1,000 square feet for Commercial are typical ratios for these firms. In general rectangular sites are preferred, with a parcel width of at least 200-feet and length that is at least two times the width for build-to-suit sites. Parcel width of at least 400 feet is desired for flexible industrial/business park developments and the largest Commercial users. Parcel configuration and parking do not appear to be a constraining factor with the city’s existing land base. Soil type. Soil stability and ground vibration characteristics are fairly important considerations for some highly specialized manufacturing processes, such as microchip fabrications. Otherwise soil types are not very important for Commercial, Office, or Industrial firms—provided that drainage is not a major issue. Soils do not appear to be a constraining factor on most sites in Springfield. The City may want to consider limiting development on areas such as wetlands, flood plains, riparian corridors, wildlife areas, steep slopes and other sensitive areas. Road transportation. All firms are heavily dependent upon surface transportation for efficient movement of goods, customers, and workers. Access to an adequate highway and arterial roadway network is needed for all industries. Close proximity to a highway or arterial roadway is critical for firms that generate a large volume of truck or auto trips or firms that rely on visibility from passing traffic to help generate business. This need for proximity explains much of the highway strip development prevalent in urban areas today. Businesses in Springfield have access to I-5, Highway 126, Highway 99 (in Eugene), and Highway 58. Springfield also has a well-developed street network within the City. The City may need to work with large businesses to increase automotive capacity in newly developed areas or in areas where the intensity of employment uses increase substantially. Rail transportation. Rail access can be very important to certain types of heavy industries. The region has good rail access to many industrial sites. Springfield is served by multiple Union Pacific rail lines. There are two primary junctions in Springfield: (1) the Springfield Junction is located in the Glenwood area in Southwest Springfield and (2) the Mohawk Junction is near the city’s southern boundary, near 25th St. Air transportation. Proximity to air transportation is important for some firms engaged in manufacturing, finance, or business services. Springfield is located 15 miles from the Eugene Airport. Attachment 1-151 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 137 Site Attribute Comments Transit. Transit access is most important for businesses in Health Services, which has a high density of jobs and consumer activity, and serves segments of the population without access to an automobile. Springfield has access to transit through the Lane Transit District (LTD). There are multiple bus lines that run throughout Springfield and multiple buses that connect Springfield and Eugene. The EmX bus rapid transit system serves existing and future employment nodes in Glenwood, Downtown and RiverBend/Gateway. Pedestrian and bicycle facilities. The ability for workers to access amenities and support services such as retail, banking, and recreation areas by foot or bike is increasingly important to employers, particularly those with high-wage professional jobs. The need for safe and efficient bicycle and pedestrian networks will prove their importance over time as support services and neighborhoods are developed adjacent to employment centers. Springfield has pedestrian and bicycle facilities. Springfield last updated the City Bicycle Plan in 1998. The plan proposes expansion of bicycle facilities to improve bicycle connectivity throughout the City and to neighboring communities. People in Springfield are able to use bicycle facilities for commuting if they live and work in areas of the City that have bicycle infrastructure. Commuting via pedestrian facilities may be more limited to people who live near their work. Springfield’s pedestrian and bicycle facilities can be used on conjunction with LTD buses to provide opportunities for alternative methods of commuting for people that live further from work. Labor force. Firms are looking at reducing their workforce risk, that is, employers want to be assured of an adequate labor pool with the skills and qualities most attractive to that industry. Communities can address this concern with adequate education and training of its populace. Firms also review turnover rates, productivity levels, types and amount of skilled workers for their industry in the area, management recruitment, and other labor force issues in a potential site area. Commuting patterns within Springfield suggest that businesses in Springfield have access to the workforce of the Eugene-Springfield Region. Firms in Springfield will need employees with a range of skills, from people with customer service skills to highly educated professionals. Some types of skills that employers may need include: management skills, technology, manufacturing (e.g., machinist or wood- working), a range of medical training, creative skills, and other skills or education. The educational and skill requirements of businesses in Springfield are likely to be similar to the needs of businesses throughout the Eugene-Springfield Region. Amenities. According to the International Economic Development Council59, attracting and retaining skilled workers requires that firms seek out places offering a high quality of life that is vibrant and exciting for a wide range of people and lifestyles. Springfield offers access to outdoor amenities. Many urban amenities are available in Springfield and Eugene. Fiber optics and telephone. Most if not all industries expect access to multiple phone lines, a full range of telecommunication services, and high-speed internet communications. Springfield has access to high-speed telecommunications facilities. 59 International Economic Development Council. “Economic Development Reference Guide,” http://www.iedconline.org/hotlinks/SiteSel.html. 10/25/02. Attachment 1-152 Page 138 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Site Attribute Comments Potable water. Potable water needs range from domestic levels to 1,000,000 gallons or more per day for some manufacturing firms. However, emerging technologies are allowing manufacturers to rely on recycled water with limited on-site water storage and filter treatment. The demand for water for fire suppression also varies widely. Springfield has sufficient potable water to meet current and expected needs. Power requirements. Electricity power requirements range from redundant (uninterrupted, multi-sourced supply) 115 kva to 230 kva. Average daily power demand (as measured in kilowatt hours) generally ranges from approximately 5,000 kwh for small business service operations to 30,000 kwh for very large manufacturing operations. The highest power requirements are associated with manufacturing firms, particularly fabricated metal and electronics. For comparison, the typical household requires 2,500 kwh per day. Springfield has access to sufficient power supply to accommodate most commercial and industrial users. Land use buffers. According to the public officials and developers/brokers ECO has interviewed, Industrial areas have operational characteristics that do not blend as well with residential land uses as they do with Office and Commercial areas. Generally, as the function of industrial use intensifies (e.g., heavy manufacturing) so too does the importance of buffering to mitigate impacts of noise, odors, traffic, and 24-hour 7-day week operations. Adequate buffers may consist of vegetation, landscaped swales, roadways, and public use parks/recreation areas. Depending upon the industrial use and site topography, site buffers range from approximately 50 to 100 feet. Selected commercial office, retail, lodging and mixed-use (e.g., apartments or office over retail) activities are becoming acceptable adjacent uses to light industrial areas. LONG-TERM LAND AND SITE NEEDS Table C-3, presented earlier in this appendix, discusses Springfield’s forecast for employment by building type. The analysis of long-term site needs in Springfield builds off of the employment forecast for Springfield. Consistent with the requirements of OAR 660-009-0015(2), the site needs analysis presented in this section identifies the number of sites by broad category of site type and size reasonably expected to be needed for the 20- year planning period. The steps in to get from the employment forecast in Table C-3 to an estimate of needed sites are: • Determine the amount of employment that can be accommodated in non-employment plan designations. Attachment 1-153 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 139 • Allocate new employment requiring land in employment designations60 to sites ranging in size from less than 1-acre to greater than 50-acres. This allocation is based on historic employment patterns, discussed in Appendix A. • Estimate the reasonable range of sites needed based on the employment forecast, historic development patterns, and infill and redevelopment potential. • Estimate the needed sites by site size and building type, using the range of sites identified in the previous step. The remainder of this section is organized based on these steps. In 2006, approximately 16% of Springfield’s employment was located in non-employment (predominantly residential) plan designations. Table A- 9 and Map A-1 show the location of existing employment in Springfield. We assumed that a similar percentage of employment would continue locating in non-employment designations. Table C-7 shows employment growth by the employment location. Table C-7 assumes makes two assumptions that decrease land needed for new employment: • Some employment growth will occur on land not designated for employment use. Some new employment will occur outside commercial and industrial built space or land. For example, some construction contractors may work out of their homes, with no need for a shop or office space on non-residential land. Currently 16% of employment is located in residential zones. ECO assumed that this trend will continue. • Some employment growth will not require new commercial or industrial built space or land. Some employment growth will be accommodated on existing developed or redeveloped land, as when an existing firm adds employees without expanding space. Typically about 10 to 15% of new employment is accommodated in existing commercial or industrial built space. ECO assumed that 10% of new employment will be accommodated in existing commercial or industrial built space. Using these assumptions, Springfield will need to provide land for approximately 10,177 new employees between 2010 and 2030. 60 Not all new employment will require additional land in employment zoning designations. Some employment growth will occur on land not designated for employment use (e.g., employment in residential zones) and some employment growth will not require new commercial or industrial built space or land (e.g., new employment accommodated in existing built space). Attachment 1-154 Page 140 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table C-7. New employment locating in non-employment plan designations, Springfield, 2030 Source: ECONorthwest Determining Springfield’s site needs requires distributing employment to a range of site sizes, ranging from small sites (less than 1 acre and 1 to 2 acre sites) to large sites (20 to 50 acre and sites greater than 50 acres). Table C-8 shows the distribution of employees by building type and site size in non-residential plan designations in Springfield in 2006. About 22% of Springfield’s employment is on sites 5 to 20 acres, 21% is on sites of less than 1-acre, and 19% is on sites greater than 50 acres. Table C-8. Percent of employees by building type and site sizes, Springfield, 2006 Source: ECONorthwest based on QCEW data Note: Total Employees may not add to 100% because of rounding errors. The percent of employees by building type and site size was calculated based on the number of employees in each building type and site size categories using QCEW data and City of Springfield tax lot data. Table C-9 distributes employees (shown in Table C-7) based on the historic distribution of employment by site size and building type shown in Table C-8. In other words, the analysis assumes that future employment will require similar site sizes as current firms. For example, 21% of employment will locate on sites less than 1 acre. Type New Employment Non- employment designtions Existing Com. & Ind. Built Space Employment on New Land Industrial Warehousing & Distribution 389 0 39 350 General Industrial 1,066 0 107 959 Commercial Office 4,713 754 471 3,488 Retail 2,043 327 204 1,512 Other Services 5,229 837 523 3,869 Total 13,440 1,918 1,344 10,178 Employment Location Building Type Less than 1 1 to 2 2 to 5 5 to 20 20 to 50 Greater than 50 Warehousing & Distribution 13% 6% 3% 63% 12% 3% 100% General Industrial 15% 17% 17% 18% 2% 31% 100% Office 28% 14% 15% 23% 13% 8% 100% Retail 29% 13% 11% 18% 10% 18% 100% Other Services 9% 4% 8% 5% 35% 38% 100% Total 21% 12% 12% 22% 13% 19% 100% Total Employees Site Size (acres) Attachment 1-155 Draft: Springfield Economic Opportunities Analysis September 2009 ECONorthwest Page 141 Table C-9. Forecast of growth employment by building type and site size, Springfield, 2010 to 2030 Source: ECONorthwest Note: The number of employees by site size may not add to the total shown in Table C-9 as a result of small rounding errors in the calculation of number of employees. Table C-10 shows the range of sites needed by site size and building type in Springfield in 2030. The table uses information the following information to determine the range of site needs: • Total employment is employment by site size from Table C-9. • Average employees per firm is based on analysis of the average number of employees per firm by site size in Springfield in 2006. • Needed sites based on historic employment patterns estimates the number of sites needed by dividing the total employment by average number of employees per firm. Although this calculation provides a reasonable estimate of the number of sites needed based on historical data, it does not take into account redevelopment potential of existing sites or the need for a variety of sites. • Range of needed sites presents a range of needed sites based on the employment forecast, historical development patterns, and potential for redevelopment. Table C-10. Range of needed sites by site size and building type, Springfield, 2010 to 2030 Source: ECONorthwest Building Type Less than 1 1 to 2 2 to 5 5 to 20 20 to 50 Greater than 50 Total Employees Warehousing & Distribution 46 21 9 221 41 12 350 General Industrial 141 161 167 168 20 302 959 Office 1,024 448 400 645 338 632 3,488 Retail 143 65 116 76 535 576 1,512 Other Services 817 451 460 869 520 752 3,869 Total 2,171 1,148 1,153 1,979 1,454 2,274 10,178 Site Size (acres) Less than 1 1 to 2 2 to 5 5 to 20 20 to 50 Greater than 50 Total Total Employment 2,171 1,148 1,153 1,979 1,454 2,274 10,178 Average Employees per Firm 12 30 39 101 594 1,432 Needed Sites based on historic employment patterns 181 38 30 20 2 2 273 Range of needed sites 180 to 250 40 to 70 30 to 60 20 to 45 3 to 6 2 to 4 275 to 435 Site Size (acres) Attachment 1-156 Page 142 ECONorthwest September 2009 Draft: Springfield Economic Opportunities Analysis Table C-11 presents and estimate of needed sites by site size and type of building. The results show that Springfield needs approximately 371 sites. Most sites are small, 2-acres or less. Springfield needs approximately 8 sites larger than 20-acres. Table C-11. Estimated needed sites by site size and building type, Springfield, 2010 to 2030 Source: ECONorthwest The identified site needs shown in Table C-11 do not distinguish sites by comprehensive plan designation. It is reasonable to assume that industrial uses will primarily locate in industrial zones. Retail and service uses could locate in commercial zones, mixed use zones, and residential zones. Building Type Less than 1 1 to 2 2 to 5 5 to 20 20 to 50 Greater than 50 Total Sites Warehousing & Distribution 35 1 9 General Industrial 5 7 10 11 3 3 39 Office 100 20 20 5 1 146 Retail 70 15 10 4 99 Other Services 50 18 5 5 78 Total 225 60 48 30 5 3 371 Site Size (acres) Attachment 1-157 Economic Development Objectives October 15, 2008 Page 1 and Implementation Strategies Attachment 2, page 1 Phone • (541) 687-0051 Suite 400 Other Offices FAX • (541) 344-0562 99 W. 10th Avenue Portland • (503) 222-6060 info@eugene.econw.com Eugene, Oregon 97401-3001 Seattle • (206) 622-2403 October 15, 2008 TO: Springfield City Council & Planning Commission FROM: Bob Parker and Beth Goodman SUBJECT: ECONOMIC DEVELOPMENT OBJECTIVES AND IMPLEMENTATION STRATEGIES The City of Springfield is conducting a Commercial Industrial Buildable Land Needs analysis. Broadly, the project has three components: (1) a buildable lands inventory; (2) an economic opportunities analysis; and (3) an economic development strategy. All of these elements are required to comply with statewide planning Goal 9 and the Goal 9 rule (OAR 660-009). The economic development strategy builds from previous work by the City and will be used to guide development of land-use policies to implement the City’s economic development vision. Economic development policies may address a range of outcomes, from policies to attract firms or retain existing firms to policies to improve or maintain quality of life. The economic development strategy presented in this memorandum was developed in support of the EOA and is designed to meet the requirements of Goal 9. As a result, the economic development strategy focuses on land-use issues, without addressing broader economic development strategies such as labor force education that may also be a priority to the City and residents of Springfield. The economic development strategy is the result of input from multiple sources: • City Council and Planning Commission. At joint worksessions in June 2008, decisionmakers provided guidance on economic development objectives for Springfield. • Commercial Industrial Buildable Lands Stakeholder Committee. The Stakeholder Committee provided input on the economic development objectives suggested by decisionmakers and suggested implementation strategies for each objective. • Community Development Survey. The City administered an on-line survey about community development issues. • Visioning Workshops. The City of Springfield held two community workshops to discuss community development issues. • Springfield Economic Development Plan. The City of Springfield completed a draft Economic Development Plan, dated April 13, 2006. The Economic Development Plan addresses a range of economic development issues, including (but not limited to) land- use planning for economic growth. Economic Development Objectives October 15, 2008 Page 2 and Implementation Strategies Attachment 2, page 2 ORGANIZATION OF THIS MEMORANDUM The remainder of the memorandum is organized as follows: • Public Opinions about Economic Development Summarizes selected results from the on-line community development survey and the public workshops. • Framework for Understanding Economic Development Policies and Actions provides an overview of economic development issues and types of economic development policies and strategies that municipalities can adopt to achieve various economic development goals. • Economic Development Strategies and Implementation Steps for Springfield presents objectives and strategies related to land-use to implement the City’s economic development goals. • Appendix A: Metro Plan Economic Element presents the economic goal, findings, objectives and policies from the Metro Plan to provide context about existing regional economic development policies. PUBLIC OPINIONS ABOUT ECONOMIC DEVELOPMENT While the analysis required to meet Goal 9 emphasizes market conditions and local productive factors as the primary determinant of potential economic growth, Oregon’s Statewide Planning Goals also recognize a role for local governments and citizens to express their desire for the level and type of economic growth in their community. The desires of a city are formally stated in its adopted Comprehensive Plan, economic development plans, and refinement plans. Development of these plans always includes opportunities for public comment and plans are adopted by elected bodies, so these plans collectively represent the community economic development vision. The 2004 Update of the Eugene-Springfield Metropolitan Area General Plan includes an economic element that articulates the region’s economic goals and objectives (presented in Appendix A). The Metro Plan lists a single economic development goal: Broaden, improve, and diversify the metropolitan economy while maintaining or enhancing the environment. The range of views by individual citizens, however, is more diverse than the consensus represented in adopted plans. This project included two public workshops and an online survey to solicit citizen’s views on economic opportunities in Springfield, issues affecting economic development, and potential policies to address these issues. This section summarizes the views expressed at the public workshop and in the online survey. RESULTS OF THE ONLINE SURVEY As a part of this project, ECONorthwest developed and implemented an online survey from April 4, 2008 through May 27, 2008. The intent of the survey was to collect anecdotal information on the opinions and preferences of survey respondents on a variety of community Economic Development Objectives October 15, 2008 Page 3 and Implementation Strategies Attachment 2, page 3 development issues ranging from pace of growth to the importance of amenities and issues to opinions about broad economic development policies. Following is a summary of the key findings from the survey. The survey had 214 respondents, with 186 respondents completing the entire survey, nearly three-quarters of whom lived inside the Springfield Urban Growth Boundary (UGB). • A majority of survey respondents (60%) think that Springfield is a better place to live than it was 10 years ago. Respondents identified a broad range of reasons. Some frequently mentioned reasons were new businesses, newer, more vibrant buildings, an improved downtown, and the EmX. • About 66% of respondents felt the rate of growth was “about right,” while about 18% indicated it is “too fast.” The remaining 16% of respondents thought that growth was too slow (10%) or did not have an opinion (6%). • About 76% of respondents felt that the city should “manage growth” as opposed to limited growth or pursuing faster rates of growth. About 78% of respondents thought that Springfield should manage growth by targeting specific types of employers. • Respondents identified the following three land-use issues as the top problems in Springfield: (1) availability of family wage jobs; (2) development on steep slopes and in floodplains; and (3) availability of affordable housing. • A majority of respondents felt that redevelopment is a high priority in Downtown (71%) and in Glenwood (63%). • A majority of respondents support economic development policies that increase economic activity, including policies to recruit new businesses and retain existing businesses. • About 85% of respondents supported policies to maintain Springfield’s existing environmental quality. RESULTS OF PUBLIC WORKSHOP The City of Springfield held two community workshops to discuss community development issues, one on May 20, 2008 and one on July 31, 2008. The intent of the workshops was to collect anecdotal information on the opinions and preferences about community issues. At the workshops, small groups formed to discuss issues of concern for developing Springfield’s economy. The City summarized the results of each group’s discussion. This section summarizes the themes discussed the workshops. Economic Development Objectives October 15, 2008 Page 4 and Implementation Strategies Attachment 2, page 4 Table 1. Summary of input from the Springfield Economic Development Workshop Category Issues and themes Jobs and the economy Attract businesses that provide stable, living or family wage jobs that provide benefits Recruit businesses that provide green or sustainable products Lower the costs of doing business in the City, such as system development charges and permitting fees Attract businesses to the City through the use of enterprise zones Sustainability and the environment Balance environmental protection and greenfield development Encourage green building practices for new development Capitalize on opportunities to increase walkability and bicycling Land use and zoning Balance the use of developing green-fields with redeveloping existing land and emphasizing infill Encourage more efficient land uses, including higher density development where appropriate Promote nodal development and mixed-use development, especially in downtown Provide opportunities for high quality development along the riverfront Reevaluate allowable uses, especially near schools Consider parking and transportation needs when planning for new uses, especially in downtown Redevelopment Focus on redevelopment in downtown and Glenwood. Revitalize downtown through redevelopment and rehabilitation of old buildings Promote re-use of vacant buildings in downtown Keep a historical perspective when considering redevelopment Source: Springfield economic development workshops, May 20, 2008 and July 31, 2008 FRAMEWORK FOR UNDERSTANDING ECONOMIC DEVELOPMENT POLICIES AND ACTIONS A wide range of economic development policies and actions are available to cities that can affect the level and type of economic development in their community. To affect economic development, any policy or action must affect a factor of production that influence business locations and job growth. In brief, the factors that have the most impact on business locations and job growth are: • Labor • Land • Local Infrastructure • Access to markets and materials • Agglomerative economies (clusters) • Quality of life • Entrepreneurship Economic Development Objectives October 15, 2008 Page 5 and Implementation Strategies Attachment 2, page 5 The supply, cost, and quality of any of these factors obviously depend on national and global market forces that local government has no influence over. But they also depend on public policy, which can generally affect these factors of production through: • Planning • Regulation • Provision of public services • Taxes • Incentives The location decisions of businesses are primarily based on the availability and cost of labor, transportation, raw materials, and capital. The availability and cost of these production factors are usually similar within a region. Most economic development strategies available to local governments only indirectly affect the cost and quality of these primary location factors. Local governments can most directly affect tax rates (within the bounds of Measures 5 and 50), the cost to businesses and quality of public services, and regulatory policies. Economists generally agree that these factors do affect economic development, but the effects on economic development are modest. Thus, most of the strategies available to local governments have only a modest affect on the level and type of economic development in the community. Local governments in Oregon also play a central role in the provision of buildable land through inclusion in the Urban Growth Boundary, plan designation, zoning, and provision of public services. Obviously, businesses need buildable land to locate or expand in a community. Providing buildable land alone is not sufficient to guarantee economic development in a community—market conditions must create demand for this land, and local factors of production must be favorable for business activity. The provision of buildable land is one of the most direct ways that the City of Springfield can affect the level and type of economic development in the community. POTENTIAL ECONOMIC DEVELOPMENT POLICIES AND ACTIONS A broad range of policies and actions are available to cities in achieving local economic development objectives. The effectiveness of any individual tool or combination of tools depends on the specific objectives the municipality wants to achieve. In short, local strategies should be customized not only to meet locally defined objectives, but to recognize economic opportunities and limitations (as defined in the Economic Opportunity Analysis (EOA)). Positive outcomes are not guaranteed: even good programs can result in limited or modest results. Table 2 identifies a range of potential economic development strategies that the City of Springfield could consider implementing. These strategies range from those closely associated with the basic functions of government (provision of buildable land and public services) to those sometimes viewed as outside the primary functions of government (such as financial incentives and business assistance). The actual policies and actions adopted by the City of Springfield will depend on the specific economic development issues and the role of the City in economic development in the community. Economic Development Objectives October 15, 2008 Page 6 and Implementation Strategies Attachment 2, page 6 Table 2. Range of potential economic development strategies Category/Policy Description Land Use Policies regarding the amount and location of available land and allowed uses. Provide adequate supply of land Provide an adequate supply of development sites to accommodate anticipated employment growth with the public and private services, sizes, zoning, and other characteristics needed by firms likely to locate in Springfield. Increase the efficiency of the permitting process and simplify city land- use policies Take actions to reduce costs and time for development permits. Adopt development codes and land use plans that are clear and concise. Public Services Policies regarding the level and quality of public and private infrastructure and services. Provide adequate infrastructure to support employment growth Provide adequate public services (i.e. roads, transportation, water, and sewer) and take action to assure adequate private utilities (i.e. electricity and communications) are provided to existing businesses and development sites. Focused public investment Provide public and private infrastructure to identified development or redevelopment sites. Communications infrastructure Actions to provide high-speed communication infrastructure, such as developing a local fiber optic network. Business Assistance Policies to assist existing businesses and attract new businesses. Business retention and growth Targeted assistance to businesses facing financial difficulty or thinking of moving out of the community. Assistance would vary depending on a given business’ problems and could range from business loans to upgrades in infrastructure to assistance in finding a new location within the community. Recruitment and marketing Establish a program to market the community as a location for business in general, and target relocating firms to diversify and strengthen the local economy. Take steps to provide readily available development sites, an efficient permitting process, well-trained workforce, and perception of high quality of life. Development districts (enterprise zones, renewal districts, etc.) Establish districts with tax abatements, loans, assist with infrastructure, reduced regulation, or other incentives available to businesses in the district that meet specified criteria and help achieve community goals. Business clusters Help develop business clusters through business recruitment and business retention policies. Encourage siting of businesses to provide shared services to the business clusters, including retail and commercial services. Public/private partnerships Make public land or facilities available, public lease commitment in proposed development, provide parking, and other support services. Financial assistance Tax abatement, waivers, loans, grants, and financing for firms meeting specified criteria. Can be targeted as desired to support goal such as recruitment, retention, expansion, family-wage jobs, or sustainable industry. Business incubators Help develop low-cost space for use by new and expanding firms with shared office services, access to equipment, networking opportunities, and business development information. Designate land for live-work opportunities. Mentoring and advice Provide low-cost mentors and advice for local small businesses in the area of management, marketing, accounting, financing, and other business skills. Export promotion Assist businesses in identifying and expanding into new products and export markets; represent local firms at trade shows and missions. Economic Development Objectives October 15, 2008 Page 7 and Implementation Strategies Attachment 2, page 7 Category/Policy Description Workforce Policies to improve the quality of the workforce available to local firms. Job training Create opportunities for training in general or implement training programs for specific jobs or specific population groups (i.e. dislocated workers). Job access Provide transit/shuttle service to bring workers to job sites. Jobs/housing balance Make land available for a variety of low-cost housing types for lower income households, ranging from single-family housing types to multifamily housing. Other Regional collaboration Coordinate economic development efforts with the County, the State, and local jurisdictions, utilities, and agencies so that clear and consistent policies are developed. Quality of life Maintain and enhance quality of life through good schools, cultural programs, recreational opportunities, adequate health care facilities, affordable housing, neighborhood protection, and environmental amenities. Source: ECONorthwest. ECONOMIC DEVELOPMENT STRATEGIES AND IMPLEMENTATION STEPS FOR SPRINGFIELD The following economic development strategies for Springfield are based on five sources of information: (1) guidance on developing the strategies from the City Council and Planning Commission; (2) input from the Stakeholder Committee on the strategies and implementation steps; (3) public input on preferred types of growth and development strategies from the visioning survey and public workshops; (4) existing goals and strategies in the Economic Development Plan;, and (5) the principles of economic development presented in the section above and Table 2. Together these considerations suggest the following criteria and strategy for the City to support economic development in Springfield. The strategies and implementation steps suggested below are organized with objectives most related to land-use planning presented first. The objectives were proposed by Springfield’s decisionmakers or through the Stakeholder group. The implementation strategies was developed by the Stakeholder group or taken from Springfield’s draft Economic Development Plan. Objective 1: Provide an adequate supply of sites of varying locations, configurations, and size, to accommodate industrial and other employment over the planning period. The Economic Opportunities Analysis (EOA) identifies the size and characteristics of sites needed in Springfield for employment uses over the planning period. Using the site needs described in the EOA, the City should track employment land use trends and re-evaluate employment land needs in five to seven years. The City should always maintain an adequate supply of land for employment uses. Suggested implementation steps: • Provide land to meet the site characteristics and site sizes described in the EOA. These sites may include vacant, undeveloped land, partially developed sites with Economic Development Objectives October 15, 2008 Page 8 and Implementation Strategies Attachment 2, page 8 potential for additional development through infill development, and redevelopable areas. The City can provide land in two ways: (1) increasing commercial and industrial land-use efficiency by promoting infill or redevelopment or (2) bringing new land into the urban growth boundary. • Work with property owners and their representatives to ensure that prime development and redevelopment sites throughout the City and Urban Growth Boundary are known, aggregated, ready to develop, and marketed. • Work with property owners and their representatives to ensure that prime development and redevelopment sites throughout the City and Urban Growth Boundary that are designated for employment use are preserved for future employment needs and are not subdivided or used for non-employment uses. • Expand industrial site opportunities through rezoning and evaluating commercial, residential, and industrial land for the best economic return for the community through the process of Periodic Review of the Metro Plan, expanding the urban growth boundary, and other means (e.g., Transportation Growth Management Grants from the State of Oregon). • Develop and implement a system to monitor the supply of commercial and industrial lands. This includes monitoring commercial and industrial development (through permits) as well as land consumption (e.g. development on vacant, or redevelopable lands). Objective 2: Provide an adequate competitive short-term supply of suitable land to respond to economic development opportunities as they arise. “Short-term supply” means suitable land that is ready for construction usually within one year of an application for a building permit or request for service extension. “Competitive Short-term Supply” means the short-term supply of land provides a range of site sizes and locations to accommodate the market needs of a variety of industrial and other employment uses. Suggested implementation steps: • Where possible, concentrate development on sites with existing infrastructure or on sites where infrastructure can be provided relatively easily and at a comparatively low cost. • Work with the State to have sites certified as project-ready through the state’s certified Industrial Lands program. • Track development of land in the short-term supply and replace developed land with undeveloped or redevelopable land with similar characteristics (e.g., location, size, topography, etc.) as the land that recently developed. The City may want to replenish the short-term supply of land on an annual basis or every two to three years. Objective 3: Reserve sites over 20-acres for special developments and industries that require large sites. There are comparatively few large sites relatively near to I-5 available for development in the Southern Willamette Valley and no sites with these characteristics in the Eugene-Springfield Economic Development Objectives October 15, 2008 Page 9 and Implementation Strategies Attachment 2, page 9 area.1 The City should preserve large sites, especially sites with access to I-5, to provide opportunities for development by industries that require large sites. Suggested implementation steps: • Designate land for industrial or business parks to provide opportunities for development of business clusters for related or complementary businesses. • Develop policies that provide flexibility in the industrial or non-retail commercial use of land on large sites. Objective 4: Provide adequate infrastructure efficiently and fairly. Public infrastructure and services are a cornerstone of any economic development strategy. If roads, water, sewer, and other public facilities are unavailable or inadequate, industries will have little incentive to locate in a community. Suggested implementation steps: • Coordinate capital improvement planning with land use and transportation planning to coincide with the City’s Economic Development Strategy. • Target resources of the Systems Development Funds of infrastructure on sites that provide prime opportunities for employment uses as a result of location, site size, or other significant site characteristics. • Ensure that public-private development agreements to recover costs are in effect prior to financing public improvements. • Establish alternative funding mechanisms in addition to debt service that provide timely completion of ‘connecting’ public facilities (unpaved block of a street or missing sections of sewer line) with preferences to projects in existing neighborhoods and those fostering economic development. • Efficiently use existing infrastructure by promoting development, infill, re-use, and redevelopment for commercial and industrial uses and developing strategies and incentives to stimulate private investment that overcome anticipated impacts or downturns in the local economy. • Support development of citywide high-speed internet access and other telecommunications infrastructures. • Provide information on infrastructure availability on a site-by-site basis so that developers are able to readily assess infrastructure availability on any given site. • Assist with providing infrastructure through the use of Urban Renewal funding, where appropriate. 1 According to Oregon Prospector, there are only nine sites in the Southern Willamette Valley with the following characteristics: 20 acres or larger, Project Certified, and within about five miles of I-5. The following counties have sites that match these characteristics: three sites in Marion County, one site in Benton County, two sites in Linn County, no sites in Lane County, and three sites in Douglas County. Economic Development Objectives October 15, 2008 Page 10 and Implementation Strategies Attachment 2, page 10 • Assess lower systems development charges (SDCs) in redevelopment areas with the capacity to provide land for employment, especially for redevelopment of areas five acres and larger. Objective 5: Encourage employers to locate in downtown Springfield, when appropriate. The City has policies to encourage residential and commercial redevelopment in downtown. The redevelopment of downtown Springfield provides opportunities to both use land more efficiently and minimize the costs of providing infrastructure. Suggested implementation steps: • Support the continued revitalization of Springfield's Downtown • Pursue policies to promote infill and redevelopment in downtown Springfield • Provide the infrastructure and services that businesses need to operate in downtown Springfield • Develop programs to promote investments in existing buildings to make downtown more attractive, such as the Urban Renewal program. • Develop a marketing strategy to attract businesses to downtown Springfield, including providing low-cost assistance for businesses moving to downtown Objective 6: Encourage redevelopment of Glenwood with a mixed use employment and housing center. The City has policies to encourage residential and commercial redevelopment in Glenwood. Like redevelopment in downtown, redevelopment in Glenwood provides opportunities to both use land more efficiently and minimize the costs of providing infrastructure. Suggested implementation steps: • Redevelop and develop sites in Glenwood through key investments, special standards, and focused activity through the Springfield Economic Development Agency (SEDA), the Glenwood Urban Renewal Plan, the Glenwood Refinement Plan and the Riverfront Development Plan. • Provide the infrastructure and services to necessary for development in Glenwood. • Coordinate economic development in Glenwood with regional economic development agencies. • Promote economic development in Glenwood through techniques, such as land assembly and cooperative development agreements, to assist developers with land assembly problems. Economic Development Objectives October 15, 2008 Page 11 and Implementation Strategies Attachment 2, page 11 Objective 7: Redevelop brownfields as the opportunities for reuse arise. Springfield has more than 20 brownfield sites that will require clean-up before the sites can be redeveloped. Springfield has about 20 to 50 more sites that may be brownfields if the sites were available for redevelopment. The cost of clean-up will vary, depending on the prior uses and type of contamination on the site. Suggested implementation steps: • Inventory existing brownfields in the Springfield UGB. The inventory should include information about the site and brownfield: site location and size, previous uses, pollution or contaminants, and other site characteristics. • Develop policies that support redevelopment of brownfields. Opportunities to encourage brownfield redevelopment may include tax incentives, decreases or waiving development fees, or private-public partnerships for state or federal grant funding for brownfield redevelopment. • Provide non-monetary assistance with clean-up and redevelopment of ‘brownfield’ commercial and industrial sites, including, for example, the possible sponsorship of applicable state and federal grants. Objective 8: Encourage development of commercial businesses in close proximity with residential uses, where appropriate. Mixing commercial and residential development is appropriate in some areas of Springfield. The City should encourage mixed used development that includes retail, office commercial, and multifamily housing in areas like downtown. In more residential neighborhoods, the City should consider mixing neighborhood retail or small-scale offices with residential uses. Suggested implementation steps: • Continue to support policies to encourage mixed-use development and nodal development in Springfield’s downtown, Glenwood, and mixed-use nodes identified in TransPlan. • Support policies to mix small-scale commercial uses into existing and new residential neighborhoods where these uses are appropriate and acceptable to residents. • Support the co-location of residential and commercial uses in existing buildings by providing financial assistance for necessary building upgrades to meet requirements in the City’s building code, such as improvements to meet seismic standards. • Reduce systems development charges (SDCs) and other development costs to encourage redevelopment and commercial uses in residential areas, where appropriate. Economic Development Objectives October 15, 2008 Page 12 and Implementation Strategies Attachment 2, page 12 Objective 9: Support and assist existing businesses in Springfield. Springfield’s existing businesses are important to the City’s continuing economic well-being. Suggested implementation steps: • Develop and implement an outreach strategy to determine how the City can assist existing businesses. Opportunities for assistance may range from ensuring availability of on-street parking to providing assistance with the development process to forming public-private partnerships to promote Springfield businesses. • Encourage self-help methods and programs for business districts such as the formation of business associations and special self-assessment districts for parking and economic improvement. • Pursue special projects and grant applications that provide support to local business and industry. • Support the co-location of residential and commercial uses in existing buildings by providing financial assistance for necessary building upgrades to meet requirements in the City’s building code, such as improvements to meet seismic standards. • Reduce systems development charges (SDCs) and other development costs to encourage redevelopment and commercial uses in residential areas, where appropriate. Objective 10: Increase the potential for employment in one of the regional industry clusters. The clusters include: Health Care, Communication Equipment, Information Technology (Software), Metals (Wholesalers), Processed Food and Beverage, Wood & Forest Products, and Transportation Equipment. Suggested implementation steps: • Provide the services, infrastructure, and land needed to attract these types of businesses, especially where it can increase connectivity between businesses. • Designate land for industrial/technology/business parks to provide opportunities for development of business clusters for related or complementary businesses. • Promote development of support businesses for business clusters, including specialized suppliers for the business cluster, restaurants, financial institutions, and other services. • Promote further development of the health care cluster in the Gateway area by examining land-use policies in the area and, if necessary, modify the policies to promote development of medical and other employment that requires specific types of land. • Promote development of high-tech businesses by continuing to target these businesses for recruitment and expansion in Springfield. Economic Development Objectives October 15, 2008 Page 13 and Implementation Strategies Attachment 2, page 13 • Coordinate development of business clusters with other cities and economic development agencies in the Eugene-Springfield region but emphasize development of the business cluster in Springfield. Objective 11: Increase the potential for convention- and tourist-related economic activities. Tourism results in economic activity, especially in the service industries like retail, food services, and accommodations. For example, the direct economic benefit of lodging tax receipts from overnight accommodations to Springfield in 2007 was $1.2 million. Springfield could increase tourism through building tourism-relative facilities, such as a convention center, through growth of businesses that bring tourists to the City, and through increased marketing. Suggested implementation steps: • Assist with conference center development at a suitable site in Springfield with a goal of making it financially independent with self-sustaining operations. • Encourage development of destination point projects (like the Springfield Museum Interpretive Center, Dorris Ranch Living History Farm and McKenzie River fishing and recreational activities) that draw visitors to the Springfield area from regional, national, and international areas. • Ensure that the factors that are likely to attract visitors to Springfield, especially Springfield’s environmental quality and natural beauty, are protected and enhanced. Objective 12: Attract sustainable businesses and support sustainable development practices. The City should foster the creation of a local, sustainable economy by partnering with other organizations to watch for opportunities and vulnerabilities, incubate and coordinate projects and facilitate dialogue, action and education within the community. The City should also work to reduce Springfield’s exposure to global economic and social vulnerabilities that could result as fuel supplies cease to be abundant and inexpensive. Suggested implementation steps: • Define “sustainable businesses” and what business practices qualify as “sustainable.” • Promote and recruit businesses that produce sustainable products, have sustainable business practices, and/or have sustainable manufacturing processes. • Support land use patterns that reduce transportation needs, promote walkability and provide easy access to services and transportation options. • Rebate development fees for development projects that are certified as sustainable to nationally recognized standards (e.g., LEED buildings). • Provide incentives for development that uses sustainable building materials or solutions (e.g., instead of using traditional asphalt, using permeable asphalt) or use of sustainable energy sources (e.g., solar or wind power). Economic Development Objectives October 15, 2008 Page 14 and Implementation Strategies Attachment 2, page 14 • When developing policies that will impact land outside of the Springfield UGB, consider future agricultural needs and economic opportunities to protect agricultural lands for production of local food. Objective 13: Recruit businesses that pay higher than average wages for the region. Maintaining and creating high-wage jobs is important for the development of Springfield’s economy. Economic development recruitment efforts the City engages in should target high- wage jobs. Suggested implementation steps: • Work with Lane Metro Partnership and other economic development organizations to target and recruit businesses: (1) with above average wages (as reported by the Oregon Employment Department), (2) other benefits such as health insurance, especially for part-time employees, and/or (3) that provide other benefits such as job advancement or ownership opportunities. • Work with local agencies to meet workforce needs, such as: training and education, job advancement, or local expansion of businesses that are less subject to boom and bust cycles. • Coordinate with community economic development organizations to develop a coherent and effective marketing program. Coordinate development of the strategy local and state economic development agencies. • Use word-of-mouth to market Springfield to prospective businesses based on the City’s reputation for: rapid processing of permits and applications, maintaining City agreements and commitments, minimizing surprises in the development process, and providing developers with certainty and flexibility in the development process. Depending on this type of marketing will require that the City strive to enhance and maintain the City’s reputation for these attributes. Economic Development Objectives October 15, 2008 Page 15 and Implementation Strategies Attachment 2, page 15 APPENDIX A: METRO PLAN ECONOMIC ELEMENT (2004) This appendix is the Economic Element from the 2004 update of the Metropolitan Area General Plan. The purpose of this appendix is to provide context for the existing regional economic development policies. In recent years, there has been a strong structural shift in the Eugene-Springfield metropolitan area’s economy. This shift is characterized by four trends: (a) a decline in the lumber and wood products industry as a source of employment; (b) limited increase in employment in other manufacturing activities; (c) diversification of the non-manufacturing segments of the local economy, primarily in trade, services, finance, insurance, and real estate; and (d) the development of this metropolitan area as a regional trade and service center serving southern and eastern Oregon. The decline in lumber and wood products and diversification of the non-manufacturing sectors are consistent with changes that are occurring in other portions of the state and throughout the nation as a result of rising real incomes and higher productivity of labor in manufacturing. The increase in employment in other manufacturing activities in this area has lagged behind other portions of the state, particularly the Portland area, and many other places in the nation. Given the projected growth in this area’s economy, it is essential that an adequate supply (quantitatively and qualitatively) of commercial and industrial land be available. An adequate supply of land includes not only sites sufficient in size to accommodate the needs of the commercial or industrial operations (including expansion), but also includes sites which are attractive from the standpoint of esthetics, transportation costs, labor costs, availability of skilled labor, natural resource availability, proximity to markets, and anticipated growth of local markets. In striving toward the Land Conservation and Development Commission’s (LCDC) Statewide Planning Goal 9: Economic Development, “To provide adequate opportunities throughout the state for a variety of economic activities vital to the health, welfare, and prosperity of Oregon’s citizens,” the Eugene-Springfield metropolitan area must take advantage of and encourage the further diversification of this area’s economic activities and role as a regional center. This diversification and growth can improve the opportunities for presently underutilized human resources and generally raise the standard of living for metropolitan area residents. Implicit in the goals and objectives that follow is the premise that the economic health of the area is integrally related to the quality of life for residents. Improved welfare of the residents of the metropolitan area, measured by increases in employment opportunities and reductions in unemployment, increases in real incomes, and improved environmental quality are the ultimate goals of all economic efforts. Economic growth or industrial expansion is acceptable when it is consistent with these goals and objectives. ECONOMIC GOAL Broaden, improve, and diversify the metropolitan economy while maintaining or enhancing the environment. Economic Development Objectives October 15, 2008 Page 16 and Implementation Strategies Attachment 2, page 16 FINDINGS, OBJECTIVES, AND POLICIES Findings 1. The structure of the Eugene-Springfield metropolitan area economy is undergoing a shift away from lumber and wood products manufacturing (and other heavy industrial activities) and towards a more diverse economic base characterized by growth in light manufacturing activities and the non-manufacturing activities of trade, commercial and professional services, finance, insurance, and real estate. 2. The lumber and wood products sector is the metropolitan area’s dominant manufacturing activity; and in this respect, Lane County’s forest is the area’s most important natural resource utilized as a factor of production. 3. Major institutions in the metropolitan area including the University of Oregon and Sacred Heart Hospital, have had a stabilizing influence on the local economy. 4. The Eugene-Springfield metropolitan area is developing as a regional center for activities, such as tourism, distribution, and financial services, serving the southwestern and central Oregon area. 5. Based on data from the 2000 U.S. Census, the per capita income in 1999 for the Eugene- Springfield metropolitan area was lower than for Oregon as a whole and the Portland metropolitan area. 6. In 2000, the unemployment rate in the Eugene-Springfield metropolitan area was comparable to Oregon and higher than the national rate. 7. Historically, heavy-manufacturing industries, including primary metals, chemicals and paper, have been characterized by high levels of pollution or energy consumption. Changes in technology and environmental regulations have reduced the potential environmental impacts of these industries. Heavy manufacturing industries provide benefits, such as relatively high wage scales and the potential for generating secondary manufacturing activities. 8. Both expansion of existing businesses through use of local capital and entrepreneurial skills and the attraction of new employers offer realistic opportunities for economic development. 9. The healthful environment of the metropolitan area can help attract industrial development, hold workers, and attract convention- and tourist-related economic activities. The concern for clean air and water is high priority with area residents. 10. The provision of adequate public facilities and services is necessary for economic development. 11. There are presently inefficiently used resources in the metropolitan area, including land, labor, and secondary waste products. 12. Major employment areas include the Eugene and Springfield central business districts, the University of Oregon area, Sacred Heart Hospital, the west Eugene industrial area, the north (Gateway) and south Springfield industrial areas, the Highway 99N industrial area, Country Club Road, Chad Drive, and the Mohawk- Northgate area. 13. The metropolitan economy is made up of a number of interrelated and important elements, one of which is construction and construction-related activities. Construction, for example, is essential for all sectors of the economy, as well as for the provision of an adequate supply of affordable housing. 14. The mixture of commercial and office uses with industrial uses can reduce or enhance the utility of industrial areas for industrial purposes, depending upon circumstances. Economic Development Objectives October 15, 2008 Page 17 and Implementation Strategies Attachment 2, page 17 Uncontrolled mixing creates problems of compatibility and traffic congestion, and may limit the area available for industrial development. Limited mixing, subject to clear and objective criteria designed to minimize or eliminate incompatibility, traffic problems, and which preserve the area for its primary purpose, can make an industrial area more pleasant, convenient, economical, and attractive as a place to work or locate. 15. Campus industrial firms prefer city services. 16. Campus industrial firms have varied site location requirements, prefer alternative sites to choose from, and usually benefit from location of other special light industrial firms within the community and within the same industrial development. Objectives 1. Improve the level, stability, and distribution of per-capita income for metropolitan residents. 2. Reduce unemployment in the resident labor force, especially chronic long-term unemployment. 3. Encourage local residents to develop skills and other educational attributes that would enable them to obtain existing jobs. 4. Promote industrial and commercial development with local capital, entrepreneurial skills, and experience of the resident labor force, as well as with new light manufacturing companies from outside the metropolitan area. 5. Supply an adequate amount of land within the urban growth boundary to accommodate: the diversifying manufacturing sector (especially low polluting, energy-efficient manufacturing uses): and (b) the expansion of the metropolitan area as a regional distribution, trade, and service center. 6. Maintain strong central business districts to provide for office-based commercial, governmental, and specialized or large-scale retail activities. 7. Ensure compatibility between industrial lands and adjacent areas. 8. Reserve enough remaining large parcels for special developments requiring large lots. 9. Increase the potential for convention- and tourist-related economic activities. 10. Provide the necessary public facilities and services to allow economic development. 11. Attempt to find ways to more effectively use inefficiently used resources such as land, labor, and secondary waste products. 12. Provide for limited mixing of office, commercial, and industrial uses subject to clear, objective criteria which: (a) do not materially reduce the suitability of industrial, office, or commercial areas for their primary use; (b) assure compatibility; and (c) consider the potential for increased traffic congestion. Policies B.1 Demonstrate a positive interest in existing and new industries, especially those providing above average wage and salary levels, an increased variety of job opportunities, a rise in the standard of living, and utilization of our existing comparative advantage in the level of education and skill of the resident labor force. B.2 Encourage economic development, which utilizes local and imported capital, entrepreneurial skills, and the resident labor force. B.3 Encourage local residents to develop job skills and other educational attributes that will enable them to fill existing job opportunities. Economic Development Objectives October 15, 2008 Page 18 and Implementation Strategies Attachment 2, page 18 B.4 Encourage the continuance of career preparation and employment orientation for metropolitan area residents by the community’s educational institutions, labor unions, businesses, and industry. B.5 Provide existing industrial activities sufficient adjacent land for future expansion. B.6 Increase the amount of undeveloped land zoned for light industrial and commercial uses correlating the effective supply in terms of suitability and availability with the projections of demand. B.7 Encourage industrial park development, including areas for warehousing and distributive industries and research and development activities. B.8 Encourage the improvement of the appearance of existing industrial areas, as well as their ability to serve the needs of existing and potential light industrial development. B.9 Encourage the expansion of existing and the location of new manufacturing activities, which are characterized by low levels of pollution and efficient energy use. B.10 Encourage opportunities for a variety of heavy industrial development in Oregon’s second largest metropolitan area. B.11 Encourage economic activities, which strengthen the metropolitan area’s position as a regional distribution, trade, health, and service center. B.12 Discourage future Metro Plan amendments that would change development-ready industrial lands (sites defined as short-term in the metropolitan Industrial Lands Special Study, 1991) to non-industrial designations. B.13 Continue to encourage the development of convention and tourist-related facilities. B.14 Continue efforts to keep the Eugene and Springfield central business districts as vital centers of the metropolitan area. B.15 Encourage compatibility between industrially zoned lands and adjacent areas in local planning programs. B.16 Utilize processes and local controls, which encourage retention of large parcels or consolidation of small parcels of industrially or commercially zoned land to facilitate their use or reuse in a comprehensive rather than piecemeal fashion. B.17 Improve land availability for industries dependent on rail access. B.18 Encourage the development of transportation facilities which would improve access to industrial and commercial areas and improve freight movement capabilities by implementing the policies and projects in the Eugene-Springfield Metropolitan Area Transportation Plan (TransPlan) and the Eugene Airport Master Plan. B.19 Local jurisdictions will encourage the allocation of funds to improve transportation access to key industrial sites or areas through capital budgets and priorities. B.20 Encourage research and development of products and markets resulting in more efficient use of underutilized, renewable, and nonrenewable resources, including wood waste, recyclable materials, and solar energy. B.21 Reserve several areas within the UGB for large-scale, campus-type, light manufacturing uses. (See Metro Plan Diagram for locations so designated.) B.22 Review local ordinances and revise them to promote greater flexibility for promoting appropriate commercial development in residential neighborhoods. B.23 Provide for limited mixing of office, commercial, and industrial uses under procedures which clearly define the conditions under which such uses shall be permitted and which: (a) preserve the suitability of the affected areas for their primary uses; (b) assure compatibility; and (c) consider the potential for increased traffic congestion. Economic Development Objectives October 15, 2008 Page 19 and Implementation Strategies Attachment 2, page 19 B.24 Continue to evaluate other sites in and around Springfield and Eugene for potential light-medium industrial and special light industrial uses, as well as potential residential uses. B.25 Pursue an aggressive annexation program and servicing of designated industrial lands in order to have a sufficient supply of “development ready” land. B.26 In order to provide locational choice and to attract new campus industrial firms to the metropolitan area, Eugene and Springfield shall place as a high priority service extension, annexation, and proper zoning of all designated special light industrial sites. B.27 Eugene, Springfield, and Lane County shall improve monitoring of economic development and trends and shall cooperate in studying and protecting other potential industrial lands outside the urban boundary. B.28 Recognize the vital role of neighborhood commercial facilities in providing services and goods to a particular neighborhood. B.29 Encourage the expansion or redevelopment of existing neighborhood commercial facilities as surrounding residential densities increase or as the characteristics of the support population change. B.30 Industrial land uses abutting the large aggregate extraction ponds north of High Banks Road in Springfield shall demonstrate that they require the location next to water to facilitate the manufacture of testing of products made on-site. UGB / Commercial Industrial Buildable Lands (CIBL) Stakeholder Committee Summary of Committee Process & Recommendations Thursday, April 16th, 2009 The CIBL Stakeholder Committee is advisory to the Planning Commission and City Council. The Committee has met nine times at Springfield City Hall, 225 Fifth Street, Library Meeting Room, 6-8pm. All meetings were open to the public. Committee Members: Member Name Membership Category 1. Mayor Leiken City Council liaison 2. Lee Beyer, Planning Commissioner Springfield Planning Commission liaison 3. Johnny Kirschenmann, Planning Commissioner Springfield Planning Commission liaison 4. Dan Egan, Executive Director Chamber of Commerce 5. Dave Marra (DC Real Estate); Jim Welsh, (JD Welsh Co.) as alternate Springfield Board of Realtors 6. Lauri Segel – Planner (Goal 1 Coalition) Land Use Advocacy Group 7. Eve Montanaro - Watershed Coordinator, Middle Fork Willamette Watershed Council Watershed Council 8. Philip Farrington Director, Land Use Planning & Development (PeaceHealth) Large Health Care Provider 9. Tim Stokes – Local Business Owner (Metal Products) Manufacturing Employer 10. Don OldenBurg (Symantec) High-tech Industry 11. Guy Weese, Board Member (Emerald Empire Art Association) Arts-Based Employment Sector 12. Kari Westlund, Executive Director (CVALCO), Richard Boyles (Alternate) Tourism Industry 13. George Grier, Board Member & Voting Delegate (Lane County Farm Bureau) Regional agri-business 14 & 15. Brianna Huber, Thurston High High School Student CITY OF SPRINGFIELD, OREGON 225 FIFTH STREET SPRINGFIELD, OR 97477 (541) 726-3753 (541) 726-3689 fax www.ci.springfield.or.us PLANNING AND COMMUNITY DEVELOPMENT Attachment 3-1 School Student; Naomi Campollo, Springfield High School Student 16. Mike Kelly, Springfield Citizen Citizen at large 17. Donna Lentz, Springfield Citizen Citizen at large 18. Steven Yett, Paramount Center, LLC. Retail Industry 19. Doug McKay, McKay Commercial Properties LLC Commercial Developer This document is a compilation of key points from the meeting minutes and is intended to provide a concise, abbreviated summary of the committee’s process and recommendations to date. Agreements and decision points are underlined. Meeting 1: April 24, 2008. ƒ Dan Egan and Lee Beyer volunteered to co-chair the Committee. ƒ The group discussed committee meeting process and established guidelines. Committee members agreed to set monthly Stakeholder Committee meetings for the fourth Thursday of each month. ƒ Mayor Leiken reiterated the importance of the project and noted that the project timeline may lengthen if need be, as the Committee works through each issue. ƒ Committee members agreed that the Stakeholder Committee should try to reach consensus, but, if that is not possible, have a vote. Majority and minority opinions would then still be forwarded to the Planning Commission / City Council. Mr. Egan suggested that opinions would be encapsulated in the minutes. ƒ David Reesor led the group in a “snow card” process to identify key issues. ƒ Mr. Parker discussed the upcoming Public Workshop and future discussion of inventory work and the Economic Opportunities Analysis. Meeting 2: May 22, 2008 ƒ Mr. Parker described the context for economic development, and spoke in depth about economic trends affecting Springfield’s future. ƒ Mr. Parker led the group in a discussion related to the Economic Development Strategy in Springfield. He asked the group to comment about assumptions related to future growth in Springfield. These assumptions included: • Job and population growth will continue in Springfield • Springfield wants to be a “complete community” • Springfield will continue to function within the regional economy • The ratio of types of employment growth in Springfield will be similar to the regional forecast – 70% services – 10% government – 20% manufacturing • The City wants to: – Attract higher wage jobs – Diversify the economy – Provide a sufficient number of sites for long-term and short-term needs – Make strategic infrastructure investments to accommodate growth Attachment 3-2 • Springfield will not have funds to provide major subsidies to attract firms Overall comments related to general acceptance of the assumptions. Some specific comments related to the following: • Importance of strategically planning for future infrastructure, including changing needs of infrastructure (i.e. auto, truck, railway, etc.) • Consider cost of infrastructure • Assuring ability to access employment sites • Estimating different site needs for office development versus industrial development • Diversity in the economy is important • Importance should be placed on higher wage jobs • Expand from just referencing “regional economy” to include “national and world economy” and its effects on Springfield • Some subsidies may be important for certain types of business if they’re choosing to locate between only a few different communities. • Cost of raw materials is having an adverse effect in the manufacturing sector. • Springfield is a self employment friendly community. • Value should also be placed on preserving and sustaining natural resources while balancing the need for jobs. • The manufacturing sector is changing, but not leaving. Biomanufacturing, intellectual management are examples of the changing manufacturing sector. • Next round of jobs coming to Springfield will be here because “they want to be here, not because they have to be here.” Quality of life is important and a selling point for attracting industries. • Private / public partnerships will continue to be important • It shouldn’t be taken for granted that job growth will continue in Springfield; Corvallis was given as an example as a community which has lost jobs in recent years. • Springfield will benefit from people’s general desire to “come out West…” • There should not be too much separation between Eugene and Springfield, as it’s a regional economy. However, Springfield doesn’t want to be a bedroom community to Eugene. Meeting 3: June 26, 2008 ƒ Ms. Goodman presented the results of the online community development survey. 214 people responded to the survey –slightly less than a similar survey conducted in Ashland. The group discussed survey validity and the public involvement process. Terry Moore noted that the Committee can recommend as a group how much emphasis should be given to the survey results. Mr. Moore noted that most people’s concerns related to the survey findings would be addressed in the Economic Development Objectives / Strategies discussion. ƒ Mr. Beyer facilitated a group discussion of the survey findings: • Ms. Segel spoke to the group about rising energy costs and the effects on future industries. She stated that, in her opinion, there were impeded assumptions in the survey – assumptions should have included climate change, rising fuel costs, etc. Attachment 3-3 • Mr. Grier spoke about survey findings, and indicated that the results show that we need to protect our quality of life; people want to live and work within close proximity; etc. He noted that there is useful information in the survey findings. • Ms. Lentz stated that she had concerns over vacant development – she’d like to see the vacant stores filled up prior to building on the fringes. • Mr. Kirschenmann spoke to the group about Springfield’s ground water protection program and how Springfield is ahead of other communities in that regard. • Mr. Beyer discussed with the group his opinion regarding industries reliance on transportation. Mr. Beyer spoke about emerging industries such as solar manufacturing. He gave an example of solar manufactures needing 100 + acre sites. • Mr. Farrington spoke to the group about community amenities that attract employers to this area. He noted that Springfield has these attractive amenities. • Mr. Marra discussed the importance of attracting new businesses to the area by having enough available land. He also explained that call centers are not necessarily long term businesses in his opinion, and that there should be more focus on manufacturing industries. • Mr. McKay spoke to the group about the importance of attracting smaller manufacturing industries locate in Springfield. He indicated that there may be a shift in the future to smaller manufacturers that provide items locally and may be more of a shift towards service industries. • Ms. Huber noted that new businesses need to be more environmentally friendly and focus less on fossil fuel consumption. • Mr. Grier asked Mr. Moore about factoring in energy costs into economic development planning. • Mr. Moore noted that the market is currently responding to the increase in energy costs. The difference between the 1970s and today is that is people believe it is more long term. People’s reaction today to high energy costs will not happen overnight, but over the long-term. Policy choices today, though, will help effect people’s responses to high energy costs. • The group discussed the relationship of energy costs and economic development. • Mr. Weese indicated that his opinion was that the high energy costs will work itself out – there will either be more oil or cleaner energy. • Ms. Segel noted that she disagreed with Mr. Weese and spoke to the group about peak oil and climate change. ƒ Presentation & Discussion of Draft Economic Development Objectives and Strategies: Terry Moore. Mr. Moore’s presentation covered the following topics: • “Narrow/traditional view” and “broad/emerging view” of economic development. • Simple model of regional growth • Key objective of economic growth – “jobs” • Factors that mater to firms • Implications / policies related to economic development Attachment 3-4 Group discussion focused on the “land development” section of economic development objectives/strategies. • George Grier stated that many communities attempt to include as much land in the land need analysis as possible – this is a concern for the agriculture community as it ties up the land base. Mr. Grier noted that the planned infrastructure should guide development in a more orderly manner. • Lee Beyer spoke to the group about a need for large sites. • Ms. Lentz indicated that she desired that the city fully utilize the existing urbanized land prior to expanding the UGB. • Mr. Farrington noted that there needs to be an adequate short term supply of land. • Ms. Segel spoke to the group about staying focused on redevelopment of infill sites and that future patterns of development may not be similar to historic patterns of development. • Mr. Grier reiterated his point related to the importance of the availability of infrastructure in relation to future growth. Availability of infrastructure should drive the process. • Mr. Beyer discussed that new, larger companies may not necessarily need infrastructure in place, but rather they could help install the infrastructure themselves. • Mr. Farrington reiterated his point of allowing flexibility for accommodating new industries. • Ms. Segel reiterated her point of changing industries and the effect of high energy costs and decline in fossil fuel capacity. Ms. Segel indicated that new call centers should not be allowed to build in the floodplain. • Group discussion continued regarding development on farm land; floodplains, etc. • Mr. Moore briefly spoke about redevelopment effects on land need. • Eve Montanaro reminded the group that when hearing different opinions during the meetings, that all members should respect others and listen to different opinions. • Additional questions were asked by the group related to the effect of historic trends relation to future economic planning. Meeting 4: July 24, 2008 ƒ Staff presented a Group Working Agreement to the Committee. The Committee agreed to adhere to the Group Working Agreement. ƒ Economic Development Objectives / Strategies. Mr. Parker gave the Committee a brief overview of steps taken to provide the draft objectives and strategies. These steps included: work sessions with Planning Commission and City Council; Stakeholder Committee discussion during the June Stakeholder meeting; online survey taken by Stakeholder Committee; and discussions with staff. The Committee provided comments and suggestions on the draft Economic Development Objectives / Strategies: Attachment 3-5 ƒ Redevelopment Potential. The committee agreed to Mr.Parker’s proposal to produce the inventory / redevelopment estimates using the mid-range redevelopment potential scenario. Meeting 5: September 25, 2008 ƒ Public Testimony. At committee member George Grier’s request, staff distributed a printed handout describing a seminar the University of Oregon is conducting regarding Multi-Lane Boulevards to the Committee. ƒ City Attorney Bill VanVactor spoke to the Committee regarding new State ethics law/requirements for public representatives. ƒ Discussion of Draft Economic Opportunities Analysis (EOA) & Inventory. Committee members commented on the information presented by ECO Northwest, including corrections to inventory maps; inventory constraints re ODOT regulations on Main Street; building regulations on floodplain and floodway within the existing Urban Growth Boundary. After deliberation on the issue, it was agreed that floodplain would be included as potentially buildable land for existing inventory purposes, so long as it did not preclude potentially excluding floodplain land in any future expansion areas during the Alternatives Analysis. ƒ Committee members agreed with the Technical Advisory Committee’s assessment of inventory constraints. Committee members identified edits to be made to the inventory maps. Meeting 6: October 23, 2008 ƒ Economic Opportunities Analysis (EOA). Present site / land needs based upon revised EOA. ƒ Finalized discussion and recommendation of Redevelopment Assumptions. The following comments/recommendations were made by Stakeholder Committee members: Mike Kelly: ƒ Agreed with ECO’s redevelopment assumptions for small retail development. ƒ His experience is that it is easier to redevelop commercial sites smaller than 2 acres (especially those 1 acre and smaller) but that commercial sites larger than 2 acres are harder to redevelop. ƒ Questions that Springfield will get 50% redevelopment of industrial development given the history of Springfield. Noted that developers want large industrial sites that are ready to build. ƒ There is a need for more new parcels available for industrial parcels 5 acres and larger. Guy Weese: ƒ Employment site needs can / should be met through redevelopment and infill Attachment 3-6 ƒ ECO’s assumptions are statistically valid, but lack of large, unconstrained vacant land on the fringe of the UGB make it unrealistic to assume that Springfield will be able to find large sites for new development. ƒ Described many vacant buildings he knows of which could be redeveloped. Naomi Campollo: ƒ Explained that there should be a priority list and timeline for redevelopment of properties. ƒ List of when and what will be developed on specific sites. Richard Boyles: ƒ Agreed with Mike Kelly Steven Yett: ƒ Agreed with Mike Kelly - pressure is on having large lots ƒ Also agreed with ECO on redevelopment of smaller sites. ƒ Thinks that the City needs to provide larger, good sites for development. Johnny Kirschenmann: ƒ Agreed with ECO recommendations Dan Egan: ƒ Explained that if redevelopment is to happen at ECO’s assumed level, there needs to be strong city policies / tools to support redevelopment in order for it to occur. ƒ Stated opinion that redevelopment hasn’t historically been as aggressive as ECO recommendation. ƒ Thinks that the assumptions underestimate the demand for large sites. George Grier: ƒ ECO’s recommendations are realistic, not aggressive. ƒ Is concerned with the cost of servicing new sites. Philip Farrington: ƒ Overall agreed that ECO’s recommendation was accurate. ƒ Thinks that the City will need sites to capture larger businesses but that the analysis does a good job with assumptions about redevelopment of smaller sites. ƒ Stated opinion that safe harbor population projection underestimates growth in Springfield. Lee Beyer: ƒ Overall agreed with ECO’s recommendation given the fact it’s for a 20-year time period. Eve Montenaro.: ƒ ECONorthwest Assumptions are reasonable Donna Lentz: ƒ ECONorthwest Assumptions are reasonable Attachment 3-7 Meeting 7: November 20, 2008 ƒ Staff prepared a memorandum summarizing the committee’s comments on the Economic Opportunities Analysis (EOA): November 20th, 2008 Stakeholder Committee Comments / Recommendations on the Draft EOA Lee Beyer: ƒ Felt that the assumptions / recommendations are a compromise but acceptable ƒ Technical analysis is sound Kati Westlund: ƒ Asked that the cluster development narrative in the draft EOA include a conference center (page 48 – add box for conference center. Page 50 – additional conference center would add to tourism industry in Springfield). Also noted that a couple additional large sites would be desirable. Don Oldenburg: ƒ Overall agrees with ECONorthwest recommendations – however, would like at least one additional large site. ƒ Commercial redevelopment assumptions seem reasonable ƒ Industrial redevelopment assumptions may be overly aggressive Johnny Kirschenmann: ƒ Overall felt that ECO’s assumptions / analysis are realistic – however, an additional large site would be helpful – but doesn’t want to risk not getting State approval if additional large sites are added. Naomi Campollo: ƒ Overall agreed with ECO’s assumptions / analysis Dave Marra: ƒ Overall agreed with ECO’s assumptions / analysis but thought the parcels needed should be large ƒ Indicated that there may be a need to update the inventory again after study is complete. Doug McKay ƒ Likes the idea of creating large parcels – but noted that there will be pressure to partition / subdivide large parcels into smaller ones. Dan Egan: ƒ Infill and redevelopment assumptions are very aggressive. Understands that assumptions are a “political compromise”, and is comfortable with that. ƒ Noted that large sites are needed for cluster employment sites (noted example of RiverBend site) Guy Weese: ƒ Agreed that there is a need for more large parcels. Attachment 3-8 Steven Yett: ƒ Noted that having one or two more large sites is critical. ƒ Agreed that there will be pressure to partition / subdivide large sites ƒ Explained that historic redevelopment / infill trends did not occur at a fast pace – but noted that there was more “green field” land available in the 1970s than today, and that it was easier to develop. George Grier: ƒ Noted that Springfield is geographically constrained, and servicing new expansion sites will be extremely costly (i.e. new bridges, sewer, etc.). ƒ Consider System Development Charges (SDCs) – more aggressive growth will cost more money for SDCs. Cost of infrastructure should be considered in any UGB expansion. ƒ Fiscal and geographic realities make it appropriate to look at infill. ECO’s assumptions don’t appear overly aggressive. The assumptions don’t take into account parcel assembly. ƒ Concern expressed over how some of the assumptions were made. Projected need for medical and government services outside the UGB is overstated – believes this can be accommodated through parcel assembly. ƒ Concern expressed over general growth rate. ƒ Supports redevelopment for commercial Mike Kelly: ƒ Would like to see more sites for 20 acre or larger sites, but understands that this could create a need to change some of the underlying assumptions. ƒ The draft EOA is acceptable Brianna Huber ƒ Agrees that it would be useful to bring in more large sites. Donna Lentz: ƒ Agrees with George Grier – the City should try to work with the sites we currently have inside the existing UGB. ƒ Economic Opportunities Analysis (EOA) ECONorthwest presented revisions to the EOA, updates to the Buildable Lands Inventory, infill and redevelopment assumptions, site needs & land needs. Key points and clarifications from the Committee’s discussion: • Bob Parker explained that providing a range of site needs scenarios (low vs. high scenario) provides some flexibility when looking at sites outside the UGB. • All land within the existing UGB was part of the analysis. • The existing Metro Plan designation was used as the basis of the analysis and constraints such as wetlands were discounted. • Glenwood was included. • Mr. Kirschenmann asked about whether or not Jasper Natron was included in the short supply. John Tamulonis explained costs and timelines associated with future road and sewer construction to Jasper Natron. Attachment 3-9 • Mr. Parker noted that there are a lot of small sites available in the existing UGB, but not a lot of large sites. • Mr. Grier noted that there were no redevelopment assumptions made about parcel assembly. Mr. Parker explained that the redevelopment assumptions regarding needed small sites will be addressed through changes in land use policies that effect land use efficiency within the existing UGB. Mr. Parker noted that the State allows parcel assembly to be considered a constraint because of the difficulties associated with it. • Kari Westlund explained how the number of site needs and acreage need was calculated. • Beth Goodman explained that the high scenario was put in place since the last meeting in response to what was previously heard from the Stakeholder Committee, TAC, Planning Commission and Council related to allow flexibility in including large employment sites. • Doug McKay asked for clarification on the low vs. high scenario – asked if ECONorthwest wanted the group to come to consensus on the low vs. high scenario. Mr. Parker stated that the Committee is not asked to decide this evening between the low vs. high scenario. He indicated that the discussion should move forward into the alternatives analysis next month, allowing the Committee to look at what types of sites are available. • Mr. McKay asked if there is a sense of how many acres of commercial and industrial were used in the last 20 years. • Mr. Tamulonis indicated that he could perhaps find more information, but that it was not currently available. • Mr. Kelly stated that he was surprised that commercial and industrial needs were treated the same. He felt that they are not the same. He stated that industrial uses are drawn towards green field sites rather than redevelopable sites. He also explained that small commercial site needs are more likely to be met through redevelopment than industrial. • Lee Beyer explained that he shares some of the same concerns. He indicated that he was somewhat bothered that all of the industrial sites will be met through redevelopment. • Mr. Parker explained that there is a need for an industrial park, which could then be divided into smaller pieces to meet the need for small industrial sites. He noted that there is a need to balance needed sites with UGB expansion. He further explained that some new industrial uses are different than traditional industrial uses. • Mr. Egan noted that companies look for sites based upon specific need. He explained that in his experience, it’s hardly ever a site that is smaller than 50 acres. He noted that Springfield does not have an industrial park with available sites. He explained that in a 20-year period, there will be hundreds of industries looking for new sites. He noted that Springfield needs to focus on large sites were there are the most inquiries. • Mr. McKay asked clarification on typical parcel sizes for big-box stores. Mr. Parker noted that warehouse sites need to be located close (i.e. approximately one-half mile) from I-5 • Mr. Egan explained that the definition of “industrial” is different than what it used to be – it is more based on technology centers (i.e. solar manufacturing, software manufacturers, etc - not smoke stacks. Attachment 3-10 • Mr. Parker focused the group again on the methodology – he noted that he heard many Stakeholders saying that they’re uncomfortable with the redevelopment assumptions related to industrial sites more so than commercial sites. • Don Oldenburg asked for clarification regarding how numbers were generated to accommodate all needed sites less than 5 acre sites within the existing UGB, and 50% of the 5-20 acre sites through redevelopment. • Mr. Parker explained that the assumptions were from input from the Stakeholders, Council, public, etc. – Springfield wants economic development but also efficient land use (i.e. not have small employment sites on the fringe of the UGB, but focus them on the center). The assumption with the 5-20 acre sites were discounted to 50% because they are more difficult to come- by. • Mr. Parker explained that the Study needs to be legally defendable – he noted that the City could be a lot more aggressive with the Goal 9 analysis. He explained that it is ultimately a policy decision if the City chooses the proposed redevelopment assumptions, as it limits land supply on the fringe, which then encourages redevelopment in the existing UGB. • Lee Beyer explained that redevelopment for small sites (less than 5 acres) makes sense because the cost of infrastructure for these small sites on the fringe would be more prohibitive. • Kari Westlund asked for clarification on a table shown in the PowerPoint. She noted that it appeared to show a surplus of small industrial sites. She explained that small commercial sites are where it showed site deficits. • Mr. Kelly noted the complexity of bringing in residential land into needed acreage. • Ms. Westlund noted that Springfield may not have enough land for large parcels when considering more residential growth. • Mr. Grier asked for clarification in the revised EOA draft, which showed a decrease campus industrial acreage. Mr. Parker explained that it was mostly due to incorporating Marcola Meadows master planned area. There also was a large portion of the Campus Industrial site in Gateway that is constrained by floodway. • Dave Marra passed around a flyer advertising a big-box site near Wilsonville - he indicated it was an example of something Springfield needs. • Mr. Beyer explained there is a difference between how companies seek commercial and industrial sites – commercial demand is driven by purchasing power and population – industrial is different. • Mr. Egan gave an example of the Woodburn outlet mall - he indicated that Springfield would not have the ability to site a similar commercial development with our existing land supply. ƒ Finalize discussion and recommendation of Revised EOA.The following is a general summary of the combined comments from the Stakeholder Committee: “The majority of Committee members felt strongly that Springfield needs more large sites but are accepting of the fact that the City may need to settle for less to get the plan approved -- approval being the most important point at this time. A minority of the group felt equally strongly that we should not pursue a large expansion of the UGB.” Attachment 3-11 Meeting 8: January 22, 2009 ƒ Bill Van Vactor, City Attorney gave a presentation: Safe Harbor Population Forecast. ƒ Allen Johnson, Attorney gave a presentation: Adopting Springfield’s UGB and UGB Adoptions around the State. ƒ Potential Employment Opportunity Areas & Constraints: Ten different opportunity areas were discussed. The notes below summarize the discussion regarding each site. Site #1 North Gateway Area Constraints Discussion: • Floodplain and floodway issues in the area. • How much of the area (in acres is affected by flood hazards? • Much of the Wicklund property is designated as a “Natural Resource Area” in addition to being subject to floodplain and floodway issues. • The Committee should be careful to avoid choosing expansion sites that cannot realistically be developed because of topographical or environmental constraints that were not an issue when the original inventory of industrial lands was compiled. • The cumulative effects of building in the floodplain must be considered. Such development is going to take a problem and move it somewhere else. • The TAC indicates that Johnson Rd. provides some potential access. Why is this so? • There are significant limitations on the traffic capacity in the Beltline-Gateway vicinity may affect the North Gateway site. • ODOT says there is a potential limitation on the density of buildout in the area (Trip cap). Opportunities Discussion: • The site is popular and visible from I-5 and is near other industrial development. • Has the large parcels (25-50 acres) that are needed. • Future improvements to I-5/Beltline and Gateway could expand transportation capacity in the area. • EMx is extending service into the area. Site #2 Hayden Bridge Area Constraints Discussion: • The area seems to be confined with the adjacent steep sloped lands, and the rivers. Is it affected by floodplain issues? • There appear to be significant areas of hydric soils that are a sign of wetland issues. • May not be developable for industrial uses. • May be better for future residential development. Opportunities Discussion: • May be easy to service with nearby infrastructure (south side of Hayden Bridge). • Good connection to I-5 via Hwy 126. Attachment 3-12 • TAC thinks the area is compatible with future office or retail development. What was the thinking of the TAC? There is no surrounding residential base to support retail development. Site #3 North McKenzie Highway • George Grier declared that he has a potential conflict of interest related to this site, given that he owns land in the vicinity. He indicated that he would keep his comments factual and objective. Constraints Discussion: • Significant floodplain and floodway problems. The 1996 flood inundated a number of areas on the map that are shown to be outside the floodplain. The floodplain maps are not accurate for this location. • SUB groundwater protection regulations are an absolute constraint on this land. There are nearby wellheads that would limit commercial and industrial development. • Cedar Creek is the receiving body for much of the stormwater runoff for North Springfield. City studies indicate that Cedar Creek is at capacity and will be challenged to accommodate future runoff from urban development within the existing UGB. Opportunities Discussion: • None discussed. Site #4 Far East Springfield Area Constraints Discussion: • Stormwater constraints. This area drains to Cedar Creek. Development proposed on the Gray property which is inside the existing UGB was constrained by the stormwater capacity limitations of Cedar creek. • Steep slopes are also an issue in this area which would constrain development. • The area would probably be best considered for residential development. Opportunities Discussion: • None discussed. Site #5 Wallace Creek Area and Site #6 West Jasper/Jasper Bridge Area Constraints Discussion: • Site #5 has some steep slope issues. The ridge separating the Wallace Creek basin includes areas of thin soils covering basalt outcroppings that prevented the extension of the Bob Straub Parkway to Wallace Creek as originally planned. • Site 6# has floodplain issues and is affected by the Willamette Greenway which requires riparian setbacks from the river. Opportunities Discussion: • The Bob Straub Parkway provides an improved access route to Hwy 126 and I-5 from this area. Is this a logical extension of the Jasper-Natron area? • Development within the Jasper Natron area along the Bob Straub Parkway may spur future development in this area. Attachment 3-13 • The Weyerhaeuser Haul Rd. provides a connection to the Wallace Creek from Jasper Natron. • There is an existing industrial site just south of Jasper that should be considered. Site #7 Clearwater Area Constraints Discussion: • Floodplain should be respected. If you don’t build around the flood channels running through the area there will be problems. • The area is part of a SUB ground water protection area (Willamette Wellfield). • New rules for lending in floodplain areas are not favorable to homeowners. • This area should be considered for residential development. Some neighborhood scale commercial would be appropriate. Opportunities Discussion: • The school district owns some land along Clearwater Lane. Site #8 South Millrace Area Constraints Discussion: • Is within the 0-5 year time of travel zone. The Willamette Wellfield ( wellheads) is a prominent part of the area. Development can occur within time of travel zones, but mitigation is necessary and would restrict the used of certain chemicals by commercial and industrial users. • The rail crossing at 28th St. is a choke point for emergency access when trains are moving through the area. Opportunities Discussion: • There is a substantial amount of publically owned land in Site #8. The City, Willamalane and Sub all control parcels in the area which may help guide future development in a positive way. • There is nearby industrial development. Integration of this area with existing urban development to the north makes sense. • Some residential development may be acceptable. Site #9 Seavey Loop Area and Site #10 Goshen Area Constraints Discussion: • Floodplain and wetland issues are apparent in this area. • ODOT indicates that 30th and I-% interchange has capacity constraints. • Much of the area has Class I and Class II soils which are “low priority” for inclusion in urban areas under state planning rules. • Mt. Pisgah is a sensitive recreational/environmental area. Opportunities Discussion: • Glenwood provides Springfield with a nexus to Site #9. Sewer connections to the area through Glenwood may be possible. • There is a significant industrial and commercial development in the area already, especially along I-5 in both Site #9 and Site #10. • The proximity to I-5 and 30th Ave. are beneficial for transportation access. • ODOT has plans to improve the I-5/ 30th interchange. Attachment 3-14 • Would expanding Site #10 to include that portion of Goshen west of I-5 be feasible and or allowed under the Metro Plan? The Metro Plan governs the boundary between Eugene and Springfield within the Metro Plan boundary. Goshen is outside of the Metro Plan area. None the less, there may be push back if Springfield seeks to incorporate land west of I-5. • Wildish owns land near Mt. Pisgah that it has proposed for residential development. Meeting 9: February 26, 2009 (Draft – to be approved on April 16). ƒ The Committee reviewed and provided comment on the Draft Estimate of Public and Semi-Public Land Needs Memorandum and Preliminary Results of the Residential Land Needs Analysis. Final calculations of how much land is available within the existing UGB will be finalized in the next few weeks and incorporated into the final residential lands analysis. ƒ George Grier presented a conceptual plan for east Main Street supported by the Farm Bureau that showed how redevelopment along east Main Street could account for much of the needed residential units projected in the study and would reduce average VMT, reduce carbon emissions, reduced energy costs, etc. The study was prepared by a University of Oregon Architecture studio class. ƒ Round-Robin sharing of the committee’s thoughts about the process to: Brianna Huber: It has been an interesting learning experience. I have enjoyed working with all of you. Dave Marra: Great bunch of people. Good experience. Johnny Kirschenmann: It has been a great experience. This is a more complicated process than the Planning Commission issues usually considers. ECONorthwest did a good job of laying things out. Dan Egan. I have enjoyed the process. I look back 20 years and the town didn’t look this way when I first moved here. I disagree with George in that I have to tell people that they have to take their great businesses somewhere else because we didn’t have the land. It will be important to have a final document that integrates the land needs for commercial, industrial, and residential lands combined. Mike Kelly: I think we feel short of where we expected to, especially with the alternative analysis. I understand there were reasons for us to stop where we have. We need to have a policy that says here are our land use policy and our economic development policies. Guy Weese: I have enjoyed the experience. I first thought that redevelopment would take care of our needs. We need some bigger pieces of land. The reality is that it will take people who are willing sell their land and someone willing to invest in development. Kari Westlund: I was challenged by the material. I was interesting and like others felt like I didn’t really have much influence and that we stopped short of where I thought we were going. Attachment 3-15 Philip Farrington: Springfield is attempting to fulfill its responsibility to maintain an inventory of buildable lands and I applaud the City Council for doing so. Don Oldenburg: We are doing the responsible thing that will help shape where our community will go. Doug McKay: I have been involved in redevelopment. Assembly of land can become expensive as soon as your neighbors hear you are trying to assemble land. I think that small redevelopment projects can be a catalyst for improving surrounding properties. ƒ Future Opportunities for the Committee Members to Stay Involved. Staff presented a flow chart with opportunities for future Stakeholder involvement that provide a meaningful opportunity for influencing a final recommendation. The consultant will continue to work on refining the opportunity areas to come up with a specific recommendation to present for public review. Staff was requested to provide the Committee with the recommendations in advance of the joint meeting with the Planning Commission. Committee members also expressed that a Committee meeting be scheduled before the Planning Commission/Council meeting to allow time to review the recommendations. Attachment 3-16  Page 1 of 1 RECOMMENDATION TO THE CITY COUNCIL BEFORE THE PLANNING COMMISSION OF THE CITY OF SPRINGFIELD REQUEST TO ADOPT THE SPRINGFIELD ] RECOMMENDATION TO COMMERCIAL LANDS, ECONOMIC ] THE CITY COUNCIL OPPORTUNITIS ANALYSIS AND ] Case Number LRP 2007-00031 NATURE OF THE APPLICATION 1. The City of Springfield has commissioned a Commercial and Industrial Buildable Lands Inventory and Economic Opportunities Analysis to outline Springfield’s employment land needs for the next 20 years as part of Springfield 2030 Refinement Plan pursuant to LCDC's Economic Development goal and rule in order to carry out mandate of 2007 Or Laws Chapter 650 requiring Springfield to separately establish its own urban growth boundary pursuant to statewide land use goals. 2. In 2007 the Oregon Legislature passed House Bill 3337 which mandates the City of Springfield to complete the 20 year buildable residential land inventory analysis and determination on or before January 1, 2010. The city chose to conduct the Commercial and Industrial Lands Study concurrently. The initial stage does not include adoption or amendment of an urban growth boundary or amendment to any comprehensive plan policies or designations. 3. Local adoption of the Springfield Commercial and Industrial Buildable Lands Inventory and Economic Opportunities Analysis is an interim step towards establishing Springfield’s own urban growth boundary pursuant to statewide land use goals. 4. The final decision on adoption of the Springfield Commercial and Industrial Buildable Lands Inventory and Economic Opportunities Analysis shall be made by the Springfield City Council and the Lane County Board of Commissioners as the Springfield Commercial and Industrial Buildable Lands Inventory and Economic Opportunities Analysis is incorporated into the Springfield 2030 Refinement Plan, a refinement plan of the Eugene-Springfield Metro Plan. Subsequent action in compliance with HB3337 to establish a separate urban growth boundary for Springfield may rely in part on this document, a variation of this document, or entirely new documentation. The adoption of a UGB is an iterative process, and depending on how the record develops, the background assumptions, analysis and determinations in the attached Springfield Commercial and Industrial Buildable Lands Inventory and Economic Opportunities Analysis may change. 5. Timely and sufficient notice of the public hearing, pursuant to Springfield Development Code Section 5.2-115, has been provided. 6. The Springfield Commercial and Industrial Buildable Lands Inventory and Economic Opportunities Analysis is consistent with 2007 Or Laws Chapter 650, State Economic Development Planning Goals and Rules OAR 660-0015, OAR 660-009-0020, OAR 660-009- 0025 as amended by LCDC in 2007, and applicable comprehensive plan policies. While not explicitly required by Or Laws 2007 Chapter 650, the Commercial and Industrial Buildable Lands Study supplements the residential lands determination required by Or Laws 2007 Chapter 650 by evaluation of the additional buildable lands necessary for the establishment of an urban growth boundary. Attachment 4-1  Page 2 of 1 7. On December 15, 2009, a public hearing on the Springfield Commercial and Industrial Buildable Lands Inventory and Economic Opportunities Analysis was held before the City of Springfield Planning Commission. The Development Services Department staff report, the oral testimony, letters received, written submittals of the persons testifying at the hearing, and the public record for file # LRP2007-00031 have been considered and hereby are incorporated into the record for this proceeding. CONCLUSION On the basis of this record, the proposed Springfield Commercial and Industrial Buildable Lands Inventory and Economic Opportunities Analysis as submitted is consistent with the criteria of 2007 Or Laws Chapter 650, State Economic Development Planning Goals and Rules OAR 660-0015, OAR 660-009-0020, OAR 660-009-0025 as amended by LCDC in 2007, and applicable comprehensive plan policies. RECOMMENDATION The Planning Commission, at its December 15, 2009 meeting, hereby recommends that the City Council approve the determination set forth in the Commercial and Industrial Buildable Lands Inventory and Economic Opportunities Analysis, as presented herein at Case No. LRP2007-00031. ______________________________ Planning Commission Chairperson ATTEST: AYES: _____ NOES: _____ ABSENT: _____ ABSTAIN: _____ Attachment 4-2 Attachment 5-1 Attachment 5-2 Attachment 5-3