| 2007 Biennial Report |
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Executive Summary
Since the global economy is defined by few boundaries, the ability to coordinate economic development across state agency and jurisdictional lines is essential to keeping Oregon competitive both now and in the future.
The Economic Revitalization Team (ERT) was created by the 72nd Oregon Legislative Assembly because of the growing recognition that economic development in the 21st century requires a kind of cross-agency coordination not inherently part of the existing compartmentalized, organizational structure of state government in Oregon.
The ERT, a six-member coordination team within the Governor’s Office headed by the Governor’s Intergovernmental Relations Director, uses a system-wide, customer service -oriented and results-based approach to economic and community development that includes the following eight state agencies:
- Oregon Economic & Community Development Department (OECDD)
- Oregon Department of Transportation (ODOT)
- Department of Land Conservation and Development (DLCD)
- Department of Environmental Quality (DEQ)
- Department of State Lands (DSL)
- Oregon Department of Agriculture (ODA)
- Oregon Housing & Community Services (OHCS)
- Department of Consumer and Business Services (DCBS)
During the 2005-2007 biennium, the coordination mechanism provided by the ERT coordinators and nine multi-agency regional teams has improved Oregon’s readiness for economic development and ensured that many local communities are better-positioned to take advantage of the improving economy.
The ERT has facilitated state agency coordination on more than 100 projects important to the economic vitality of Oregon communities including readying 47 industrial sites for “project ready” certification statewide. All or part of 19 certified sites have been developed or are in the process of being developed. The development of these sites has brought millions of dollars of private investment to the state and contributed to the creation and retention of more than 2,500 jobs. When you add in the sites in the certification queue that were developed before certification could be completed, the job figure jumps to almost 3,500. Most of these jobs meet or exceed the county average wage.
Given the recent economic recovery, the ERT coordinators and regional teams have become increasingly engaged in business recruitment activities such as Amy’s Kitchen to White City, Pepsi/Gatorade to Albany and Genentech to Hillsboro. The ERT supports OECDD and local government recruitment efforts by expediting regulatory permitting processes, by coordinating state resources for maximum efficiency and by providing needed technical assistance from a multi-agency perspective.
The ERT coordinators and the state agency field staff serving on regional teams live in the regions they serve. This localized placement of state staff and the hands-on assistance they provide to communities contributed to the high ratings the ERT received in the 2006 ERT Customer Satisfaction Survey; 90% of survey respondents perceived the services provided by the ERT as “good or excellent”. The ERT received the highest rating in the area of knowledge and expertise, which goes a long way toward building trust relationships between state and local government.
Although the ERT approach has increased coordination on economic and community development, moving that coordination to the next level of integrating permitting processes remains a challenge as regulatory authority is often spread across a number of state agencies. Within state government’s existing statutory and organizational framework, the ERT and its partner agencies have made great strides toward understanding each other’s roles and identifying opportunities to improve efficiencies through coordination. The following examples highlight the results of such interagency coordination.
- OECDD’s Industrial Site Certification application process has been simplified with the help of all agencies involved.
- DLCD has worked with the ERT and OECDD to ensure that communities engaged in economic development planning activities are equipped with current market data, trends and other information relevant to their future opportunities.
- DSL, OECDD, DLCD, DEQ, ODA, and the ERT are working with a number of local partners to explore options for increasing the state’s ability to effectively address the issue of wetlands on industrial lands.
Pending other direction from Governor Kulongoski and the Legislature, the ERT will continue to assist local communities with implementing high-priority economic development projects and with institutionalizing a coordinated response to economic development within state government. To ensure continued success, legislative approval of the following actions is requested:
- Recapitalize OECDD’s Special Public Works Fund (SB 5508) and DEQ’s Clean Water Revolving Fund (HB 5005/5022) since adequate infrastructure enables local communities to effectively compete for business opportunities.
- Increase staffing at both DEQ and OECDD for brownfield cleanup to increase the state’s capacity to redevelop former industrial sites and bring them back on the tax roles.
- Approve proposed changes to OECDD’s statute (SB 350) to allow the agency to hold and sell wetlands mitigation bank credits to provide mitigation alternatives for business expansions and recruitments.
- Approve HB 2251 to allow DSL to test a pilot coordinated water-related permit process which will provide a first step toward the creation of a coordinated regulatory permit system for the state.
- Approve SB 186 to encourage cities and counties to identify additional industrial lands and conserve these lands for industrial development.
Even though the ERT was established during a time of economic recession and budgetary crisis, its efforts are needed even more in an improving economy.
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