strategic business plan vol ii
TRANSCRIPT
Thanks to the Port of Morrow, its stakeholders,
and community partners for sharing their time
and insight in the development of this
Strategic Business Plan.
Port of Morrow Strategic Business PlanVolume 2. Plan | October 2013
The Port of Morrow BergerABAM
Strategic Business Plan Vol. 2 – Plan October 2013
Boardman, Oregon Page i of iii
Acknowledgements:
This plan was developed by the Port of Morrow with assistance from Business Oregon.
For more information about the Port of Morrow, visit:
www.portofmorrow.com
Prepared by:
BergerABAM
(541) 386‐1047
www.abam.com
In association with:
FCS GROUP
Port of Morrow Commissioners:
Don Russell, President
Marv Padberg, Vice President
Larry Lindsay, Secretary
Joe Taylor, Commissioner
Jerry Healy, Commissioner
Port of Morrow Staff:
Gary Neal, General Manager
Lisa Mittelsdorf, Director of Economic Development
Eileen Hendricks, Controller
Kathie McGowan, Administrative Secretary
Ron McKinnis, Engineer
Rolf Prag, Utility Maintenance & Site Supervisor
Carmen Velasco, Office Assistant
Dori Drago, Facility Coordinator
Kalie Davis, SAGE Center Manager
Thanks to the Port Morrow, its stakeholders and community partners for sharing their time and
insight in the development of this Strategic Business Plan.
Please see also Volume 1. Strategy
The Port of Morrow BergerABAM
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The Port of Morrow Strategic Business Plan
TABLE OF CONTENTS PAGE Port History .................................................................................................................................. 1 I.
A. Morrow County ...................................................................................................................... 1 B. Boardman .............................................................................................................................. 1 C. Port of Morrow ...................................................................................................................... 1
Port Mission and Goals ............................................................................................................... 2 II.A. Mission .................................................................................................................................. 2 B. Goals ...................................................................................................................................... 2
Strategic Plan Development Process ........................................................................................ 2 III.
Port Overview and Description ................................................................................................... 3 IV.A. Sites and Facilities ............................................................................................................... 3
Boardman Industrial Park .............................................................................................. 3 East Beach Industrial Park ............................................................................................ 3 Airport Industrial Park .................................................................................................... 4 South Morrow Industrial Park ....................................................................................... 5
B. Industrial and Commercial Property Developments .......................................................... 5 C. Zoning .................................................................................................................................... 5
City of Boardman ............................................................................................................ 6 Morrow County................................................................................................................ 6
D. Commission ........................................................................................................................... 6 E. Staff and Offices ................................................................................................................... 6 F. Market Conditions ................................................................................................................ 6 G. Local and Regional Partners ................................................................................................ 7
Defining the Problem and Opportunity ...................................................................................... 8 V.A. District Demographic Profile ............................................................................................... 8 B. District Economic Profile ..................................................................................................... 8 C. Trends for Regional, State, and National Key Industries ............................................... 10
Agriculture Trends ....................................................................................................... 10 Tourism and Recreation Trends ................................................................................. 10 Economic Impact Analysis .......................................................................................... 11 District Needs .............................................................................................................. 12 Community Role .......................................................................................................... 13
Policy Context ........................................................................................................................... 13 VI.A. Planning and Environmental Policy Compliance Issues ................................................ 13
Statewide Planning Goals ........................................................................................... 13 Local and Regional Plans ........................................................................................... 15
Situational Analysis ................................................................................................................. 16 VII.A. Identify Strengths, Weaknesses, Opportunities, and Threats........................................ 16
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B. Critical Issues ..................................................................................................................... 16 Location and Geography ............................................................................................. 16 Quality of Life and Business Incentives ..................................................................... 17
C. Demand Analysis ................................................................................................................ 17 Economic Strengths and Weaknesses ...................................................................... 17
D. Port Industrial Opportunity Sites ...................................................................................... 17 Retail Target Market Opportunities ........................................................................... 18 Development Overview ................................................................................................ 19
E. Priority Projects ................................................................................................................. 19 F. Risk Analysis ...................................................................................................................... 20
Strategic Business Plan .......................................................................................................... 21 VIII.A. Critical Success Factors influencing Port Strategies ..................................................... 21 B. Management and Business Principles ............................................................................ 21 C. Management Plan ............................................................................................................. 22 D. Financial Plan .................................................................................................................... 23 E. Capital Improvement Plan ................................................................................................ 23 F. Environmental Plan............................................................................................................ 27 G. Marketing Plan .................................................................................................................. 27
Development Action Plan ........................................................................................................ 28 IX.A. Port Development Planning Process ................................................................................ 28 B. Port Development Projects ............................................................................................... 30 C. Capital Projects by Goal and Strategy ............................................................................. 30 D. Development Implementation Summary ......................................................................... 33 E. Action Plan Implementation ............................................................................................. 33
LIST OF FIGURES Figure 1 - East Beach and Boardman Industrial Parks ......................................................................... 3 Figure 2 - Aerial of Airport Industrial Park ............................................................................................. 4 Figure 3 - South Morrow Industrial Park ................................................................................................ 5 Figure 4 - Industrial Park Gateway Concept ....................................................................................... 13 Figure 5 - Port of Morrow Development Planning Process ............................................................... 29 LIST OF TABLES Table 1 - Port of Morrow Organizational Partners ................................................................................. 7 Table 2 - Strengths, Weakness, Opportunities and Threats .............................................................. 16 Table 3 - Risk Analysis .......................................................................................................................... 20 Table 4 - Port of Morrow Capital Improvement Plan .......................................................................... 26 LIST OF APPENDICES Appendix A - Port District and Zoning Appendix B - Public Outreach Summary Appendix C - Facility Condition Assessment Appendix D - Market Analysis Appendix E - Financial Plan
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PORT OF MORROW STRATEGIC BUSINESS PLAN
PORT HISTORY I.
A. Morrow County Morrow County (County) is located east of the Cascade Mountains in North Central
Oregon. The County was established in 1885, although exploration and settlement of the
area began during the mid‐1800s. People were originally attracted to the area’s potential
for gold mining and its land for cattle grazing. For many years, ranching was the main
economic activity in the area; however, in the 19th century, the pastures became
overgrazed, and farming became the leading economic activity. This was further
supported through the introduction of railways to the area in 1883 which increased farm
access to markets. Today, the main industries in Morrow County include agriculture,
energy production, lumber, food processing, livestock raising, and recreation.
B. Boardman
Boardman (City), located in northeastern Oregon along the Columbia River, was named
after Samuel H. Boardman who claimed the land in 1903. He later became the state’s
first full‐time superintendent of state parks. In 1952, Boardman was relocated a half mile
to accommodate U.S. Highway 30. In 1965, the town was moved once again for the
construction of the John Day Dam.
The Boeing Company established a test site for rockets in Boardman in 1964 – Morrow
County still has a Space Age Industrial zone near the airport. Around this time new
investments were made in irrigation systems to support farm development in the area.
Agriculture and food processing have become boom industries in Boardman, which is
also a major hub for transportation of manufactured goods.1
C. Port of Morrow
Chapter 777 of the Oregon Revised Statutes (ORS) designates Oregon ports as special
districts. These statutes give ports many of the standard powers of a public entity,
including the ability to levy taxes, borrow money, issue bonds, and charge for services.
The Port of Morrow (Port) was established in 1959 and has become the second largest
port in the state in terms of tonnage. The Port’s location along the Columbia River
allows it to serves as a gateway for the region. Today, the Port encompasses more than
8,000 acres, with 2,500 acres zoned industrial for future development opportunities.2
(See Appendix A for a map of the port district, which includes all of Morrow County
and the communities of Boardman, Irrigon, Ione, Lexington, and Heppner.)
1 “City of Boardman.” Official Website, n.d. Web. Feb. 2013. 2 “Review and History.” Port of Morrow. The World Port Source, n.d. Web. Feb. 2013.
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PORT MISSION AND GOALS II. A. Mission
The Port of Morrow is the region’s economic development leader, and works closely
with businesses and organizations to create family wage jobs. The Port maintains a
positive business environment; develops water sources; provides and expands utility
services; provides surface, water and air transportation facilities and services; and
continues to expand its role as a regional transportation hub. The Port is focused on
fully developing industrial, commercial and community development potential while
supporting the region’s quality of life.
B. Goals
To implement the Port’s mission, the Port Commission established a six‐goal business
development approach and specific strategies.
Goal 1: Expand the Port’s role as the regional transportation hub by providing superior
facilities and services.
Goal 2: Fully develop the business and employment potential of the Port’s industrial
properties
Goal 3: Fully develop and maintain additional water rights for future development
activities.
Goal 4: Maintain and develop utility services that efficiently and effectively support
regional development and Port customers.
Goal 5: Support development of the tourism, recreation, education and public facility
potential of the region.
Goal 6: Support community economic development activities which enhance
employment creation and sustain the District’s quality of life.
STRATEGIC PLAN DEVELOPMENT PROCESS III.
This plan is provided to meet the requirements of Business Oregon and was developed
with significant community outreach, including 16 stakeholder interviews, public
meetings, Commission workshops, and a focus group session (see Appendix B, Public
Outreach Summary). The Port’s assets, infrastructure, project and financing needs, and
implementation strategies were analyzed to help guide the Port’s future actions. The
public and Port Commission will review and comment on the draft plan in June 2013
and feedback will be incorporated in the succeeding draft final plan. The consultant
team will present a final proposed Strategic Business Plan for Commission adoption in
July 2013.
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PORT OVERVIEW AND DESCRIPTION IV. A. Sites and Facilities
The Port’s properties cover more than 8,000 acres of land in Morrow County. Most of the
Port’s properties can be divided into four facilities: Boardman Industrial Park, East
Beach Industrial Park, Airport Industrial Park, and the South Morrow Industrial Park
(see Appendix C, Facility Condition Assessment for details).
Boardman Industrial Park The Boardman Industrial Park comprises approximately 1,500 acres. It is located near all
major modes of transportation. The site is located on the north side of Interstate 84 (I‐84)
and along the Columbia River with three marine terminals. The Union Pacific mainline
passes along the northern border of the park, which is served by a 12,000‐foot spur. The
land within the park is mostly developed. Tenants are primarily agricultural in nature
and use the facilities for processing and distribution. The Port uses the food processing
wastewater to irrigate Port‐owned land for interim farm use. Applicable City zones
include General and Light Industrial; County zoning is Port and General Industrial. East Beach Industrial Park The Union Pacific mainline railroad includes approximately 8 miles of rail that that
separates the Boardman Industrial Park from the East Beach Industrial Park. East Beach
is an approximate 2,000‐acre site located north of the Union Pacific mainline railroad
and I‐84. A portion of the East Beach Industrial Park is located along the Columbia River
and is served by two existing terminals. The Port uses the food processing wastewater to
irrigate Port‐owned land for interim farm use. Zoning for this area includes County Port
Industrial and General Industrial.
Figure 1 - East Beach and Boardman Industrial Parks
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Airport Industrial Park
The Airport Industrial Park is an approximate 2,700‐acre site located approximately 4
miles southwest of the City. The site consists of 850 acres for the Airport Industrial Park
and 1,850 acres for future development. The Airport Industrial Park includes the
Boardman Airport and a 6,400‐square‐foot building owned by the Port. The Port owns
six properties at the Airport Industrial Park facility, and an additional 1,400 acres on
North Tower Road. The airport is undergoing improvements which will eventually
include a new fueling station, airport apron rehabilitation, and the installation of 9 new
hangars including a pilot lounge. Water is supplied to the Airport Industrial Park from a
system of Port‐owned deep wells. The available water supply is currently adequate for
this site. If the demand for water increases, the Port has the right to drill additional
groundwater supply wells. This area includes several County zones: Airport Industrial
(including Airport Approach and Airport Hazard overlay zones); Space Age Industrial
east of Tower Road; and General Industrial north of I‐84.
Figure 2 - Aerial of Airport Industrial Park
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South Morrow Industrial Park The Port owns three properties at the South Morrow Industrial Park facility. The South
Morrow Industrial Park is an approximate 125‐acre site located approximately 1 mile
northwest of Heppner. The park, which is the former site of the Kinzua Lumber Mill,
includes an office building and warehouse/shop buildings. This County site is zoned
General Industrial.
Figure 3 - South Morrow Industrial Park
B. Industrial and Commercial Property Developments The Port is a critical contributor to economic development in the County. In recent years,
the Port and its partners have implemented many public facility investments. The Port
continues to invest in infrastructure needed to attract new business and industry.
Highlights of these investments include:
• ConAgra Lamb Weston expansion
• Tillamook expansion
• Data centers
• Transportation and rail improvements
• Sustainable Agriculture and Energy (SAGE) Center
Future projects in the planning stages include:
• Morrow‐Pacific project
• New baseball fields
C. Zoning
This Port of Morrow Strategic Business Plan focuses on development opportunities
within the port district, which includes land zoned for industrial use in the City and
County.
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City of Boardman City and County zoning (see Appendix A, Maps) show properties within the port
district that are zoned City General Industrial and Light Industrial and County Port
Industrial, General Industrial, Airport Industrial, and Space Age Industrial. These zones
support a number of employment‐generating activities as permitted or conditional uses.
Tables A.1 and A.2 in Appendix A summarizes permitted and conditional uses in the
City’s General Industrial (GI) and Light Industrial (LI) zones.
Morrow County Error! Reference source not found. and Error! Reference source not found. in
Appendix A summarize permitted and conditional uses in applicable County zones:
Port Industrial (PI); General Industrial (MG); Airport Industrial (AI); and Space Age
Industrial (SAI) (see the above section for zoning per Port site).
D. Commission
The Port is governed by ORS 777 and a five‐member commission which is elected by
port district voters. Port Commission meetings are held on the second Wednesday of
each month at the Port office on Marine Drive in Boardman.
Port Commissioners are active members of the Oregon Public Ports Association and the
Pacific Northwest Waterways Association. Membership in these regional trade groups
serves the Port’s interests through representation on critical transportation, economic
development, and environmental issues.
E. Staff and Offices
The Port presently employs 33 full‐time and 7 seasonal employees. The General
Manager, who is appointed by the Port Commission, is responsible for the management
and administration of Port activities. The Port provides development opportunities and
offers assistance with financial services. The Port’s administrative offices, located at the
Riverfront Center, also serve as large meeting space for public and private events.
Accommodations at the adjacent River Lodge & Grill include 48 rooms and a full service
restaurant.
F. Market Conditions
Oregon’s economic growth is tempered by relatively high unemployment rates. The
state posted a year‐over‐year overall job gain of 23,200 jobs between February 2012 and
February 2013, which was an improvement over the prior year’s job gain of 17,800 jobs.
At the same time, the state’s seasonally adjusted unemployment rate continued to fall
from 8.9% in February 2012 to 8.4% in February 2013 (still higher than the 7.7%
unemployment rate for the US).
Unemployment rates in the County have been lower than the state average with 8.0%
unemployment in January 2013. It should be noted that Oregon is also experiencing a
high level of “under‐employment” which is not reflected in these data trends.
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Oregon state economists are predicting a continued upturn in the short term, with
employment growing slowly at about 1.2 percent in 2013. The Oregon economy should
experience more rapid growth than the nation as a whole, but this is not expected to
generate a corresponding rise in per capita personal income before 2017, since any
income gains will be largely offset by increases in the state population.
G. Local and Regional Partners
Ongoing collaboration with strategic partners allows the Port to leverage efforts to
address its mission and manage its assets. Table 1 summarizes the Port’s role in working
with each organization.
Table 1 - Port of Morrow Organizational Partners
Port Partners Role and Key Issues
Morrow County The port district includes all of the County and its five cities. The Port coordinates with the County on economic development, land use planning, and permitting.
Umatilla County Umatilla County adjoins Morrow County and is a partner assisting with employment opportunities for Morrow County residents, among other regional development efforts.
Boardman Chamber of Commerce
The Port coordinates with the Chamber on economic and community development efforts; particularly for local commercial expansion needs to support community development and provide services to industrial park employees.
Port of Umatilla and Port of Arlington
Coordinate with adjoining ports on regional development efforts and common port needs.
Umatilla Army Depot Reuse Authority
Authority in charge of land use and environmental planning for nearly 20,000 acres of redevelopment land at the Umatilla Army Depot in both Umatilla and Morrow counties. The Office of Economic Adjustment recognized the Umatilla Army Depot Reuse Authority (UMADRA) as the planning local redevelopment authority (LRA) in January 2009. The LRA comprises representatives from the Port, the Port of Umatilla, Umatilla and Morrow counties, and the Confederated Tribes as well as two ex-officio state representatives.
Greater Eastern Oregon Development Corporation (GEODC)
Member of this regional economic development organization charged with supporting job development. The GEODC includes multiple cities, counties, and the ports of Morrow, Umatilla, and Arlington, among others.
Cities of Boardman, Heppner, Ione, Lexington, and Irrigon
Coordinate with local communities within the port district on economic development.
Local Businesses and Tenants Provide opportunities for business expansion.
Blue Mountain Community College
Partner for vocational and workforce training.
Pacific Northwest Waterways Association
Avenue to collaborate with port-based businesses and with public agencies.
Association of Pacific Ports Resource to build port efficiency and effectiveness.
Oregon Public Ports Association Coalition of Oregon ports sharing legislative issues and updates.
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DEFINING THE PROBLEM AND OPPORTUNITY V.
This section includes a brief summary of current demographic and industry trends,
community input, job growth opportunities, and economic impact analysis (see
Appendix D, FCS GROUP Market Analysis).
A. District Demographic Profile
The County had a population of 11,300 people in 2012, up from 11,173 in 2010. Umatilla
County’s population consisted of 77,120 people in 2012. Over the 2000 to 2010
timeframe, the average annual population growth rate for Morrow and Umatilla
counties was well below the statewide average. However, since 2010, population growth
rates have improved for both counties and are now close to the state average.
The Oregon Office of Economic Analysis expects population growth in Morrow and
Umatilla counties to be on par with the state average. Morrow County is projected to
add 2,220 people between 2015 and 2030, and Umatilla County is projected to add nearly
14,900 people. This level of population growth would be expected to support about 825
new dwelling units in Morrow County and 5,540 dwelling units in Umatilla County by
year 2030 (assumes current Census average of 2.69 persons per household).
There has been a net in‐migration into Morrow County in recent years. Average per
capita income levels of people moving in are slightly above the income levels of people
moving out. New residents moving into Morrow County are much younger than the
current residents. While only 35% of the current population is below age 24, the
percentage of new residents in the same age cohorts was much higher at 54%. This trend
will likely create additional demand for local schools and recreational facilities.
Income levels within the County have been increasing over the past decade in spite of
two national economic recessions. The median household income level for the County
was approximately $46,110 in 2010 and the average per capita income level was $20,215.
The County’s median income levels are now about 8% lower than the Oregon statewide
average.
In summary, there has been a recent trend towards increasing numbers of younger low‐
income residents in Morrow County. Continued efforts by the Port in partnership with
local or state governments to attract new opportunities for “living wage” jobs should be
pursued to help encourage higher‐income employment.
B. District Economic Profile
The Port is the link between the regional agricultural economy and the world via the
Columbia River and converging rail, highway, barge, and airport transportation
linkages. The Port provides regionally significant industrial land and buildings with
abundant infrastructure and has successfully attracted large private businesses that
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serve regional, national, and global markets. The port district includes all of Morrow
County. The Port’s labor force of 180,000 people extends a radius of 40 to 50 miles into
both Oregon and Washington and includes the cities of Boardman, Hermiston,
Arlington, and Pendleton (Oregon) as well as the Tri‐Cities region (Washington).
The Columbia River port system is one of four primary international trade gateways
along the West Coast. Rapidly growing Asian and Middle Eastern economies will result
in significant increases in demand for trade into and out of most international and
regional ports, including the Port of Morrow. Commodity flow forecasts for the region
project a doubling of freight volumes along the Columbia River over the next 20 years.
This growth equates to an average annual growth rate of 2‐3%.
As global and state GDP rise and commodity trade increases, Oregon ports could benefit
from increases in import and export activity. The value of Oregon exports reached a
record high of $18.3 billion in 2011 (according to the most recent data by the U.S.
Department of Commerce), up 3.6% from 2010. Oregon’s leading trade partner is China,
which now imports about 23% of Oregon exports. Other leading export destinations in
decreasing order include Malaysia, Canada, Japan, South Korea, and Taiwan.
According to the Oregon Employment Department, at the end of 2012, the County had
3,520 covered jobs – those covered by unemployment insurance. The current level of
employment in the County is now at an all‐time high. The County’s fastest growing
employment sectors between 2001 and 2012 are manufacturing, wholesale trade,
education and health services, and local government.
Umatilla County had 27,740 covered jobs at the end of 2012. The current level of
employment in that county is down 150 jobs from its recent peak in 2008. Umatilla
County’s fastest growing employment sectors between 2001 and 2012 were education
and health services, professional and business services, leisure and hospitality, and
tribal government.
A high share of seasonal part‐time and home‐based employment is not reflected in the
covered employment estimates reported by the Oregon Employment Department. It is
estimated that approximately 38% of total employment in Morrow County is not
reported by OED (equates to +/‐ 1,760 jobs). The total 2012 employment in the County is
estimated to include 2,356 agriculture jobs (seasonally adjusted) as well as 2,123
industrial jobs, 219 retail trade jobs, 918 service jobs, and 935 government jobs.
The Oregon Employment Department anticipates a 1.3% annual average growth rate in
the Morrow County/Umatilla County job base over the 2010 to 2020 period. A net
increase of 4,600 jobs is forecast over the next 10 years. The largest increase in job growth
is expected in education and health services; natural resources (includes farming and
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mining); manufacturing; government (includes tribal, local, state and federal workers);
transportation/warehousing/utilities; leisure and hospitality; and retail trades.
C. Trends for Regional, State, and National Key Industries
As of 2012, moderate economic expansion is occurring nationally and in Oregon.
According to the U.S. Bureau of Economic Analysis, real gross domestic product (GDP;
the measure of the value of all goods and services produced annually) increased by 3.1%
during the third quarter of 2012, up from an annual rate of 1.7% in 2011and 3.0% in 2010.
The future GDP outlook is promising. According to recent projections by the Federal
Reserve Open Market Committee, national real GDP is expected to grow by between
2.5% and 3.0% in 2013 and by 3.0% to 3.8% in 2014.
Agriculture Trends Agriculture plays a major role in the regional economy. Morrow and Umatilla counties
are first in the state of Oregon in production of grain, melons, and potatoes, milk/dairy
products, and second in the production of cattle according to the U.S. Department of
Agriculture Census of Agriculture (2007). The annual commodity value of farm
products in Morrow and Umatilla counties combined increased significantly between
2002 and 2007—from about $443 million to $674 million.
In 2007, the top commodity products in Morrow and Umatilla counties included cattle
($204 million); grains ($154 million); vegetables/melons/potatoes ($112 million); and milk
and dairy products ($90 million). Monthly agricultural employment within these
counties reaches a seasonal peak of 5,570 workers in August and has an annual average
employment level of 4,260 workers.
Tourism and Recreation Trends Visitation and tourism play an increasingly important role in supporting the regional
economy. As population in Oregon and across the western U.S. increases, visitation
activity within the County is expected to rise. Visitors are drawn to the area’s many
natural attractions, including fishing, hunting, and camping. The Port held the grand
opening of the new SAGE Center in May 2013, and the Center is likely to attract
thousands of visitors each year to Boardman.
According to a tourism impact study prepared for the Oregon Tourism Commission,
annual travel spending in the County hit an all‐time high of $12 million in 2011, up from
$9.7 million in 2002. Total travel spending increased at an average annual rate of 2.4% in
the County between 2002–2011, slightly below the tourism spending growth rate for the
state (3.6%) during this same period. The retail sectors that benefit from tourism include
food service/restaurants, food and beverage stores, accommodations, and miscellaneous
retail stores.
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Lodging sales in the County generally trended upwards from 2004 to 2011. Quarterly
average lodging tax collections were between $6,000 and $7,000 per quarter over the past
three quarters. Local efforts to spur business growth and visitation (with the recent
opening of the SAGE Center) should help boost tourism and visitation over the next
several years.
Economic Impact Analysis FCS GROUP concurrently conducted a separate economic impact analysis for the Port
(draft report, May, 2013). Highlights of economic impacts and job creation findings from
the analysis include:
The Port is the state’s second largest port (behind the Port of Portland), and is
likely the largest single owner of vacant industrial land in Oregon.
The Port contributes to the economic competitiveness of Oregon and the United
States by serving as the main point for freight distribution, export and value‐
added production of agricultural products (grains, root vegetables, cattle, and
milk/dairy products) that are primarily grown in Oregon, Washington, Idaho,
Montana, and Wyoming.
It is estimated that over 7.7 million people reside within a half‐day drive to/from
the Port, including residents of Portland, Vancouver, Tacoma, Seattle, Boise, and
other areas.
Industries served by the Port include agriculture, lumber, food processing,
livestock, transportation, freight distribution, information, advanced
communications, energy, waste management, and recreation.
The permanent annual economic impact of the Port and the 47 separate Port‐related
businesses include the following:
Total employment of 6,850 jobs (3,965 direct jobs, 1,925 indirect, and 960 induced)
Annual output of more than $1.6 billion ($1.23 billion direct, $260 million
indirect, $111 million induced)
Annual GDP of over $571 million ($382 million direct, $126 million indirect, $63
million induced)
Over $266 million in labor income ($163 million direct, $73 million indirect, $30
million induced)
Annual local/state tax revenue/payments of over $48 million
Annual federal tax revenue/payments of over $66 million
In comparison to the prior 2008 economic impact analysis conducted for the Port using a
similar IMPLAN input‐output modeling methodology, it is apparent the economic
impact of the Port has increased measurably over the past 5 years. In addition to the
permanent economic impacts, $66.8 million in public infrastructure investments and
$386 million in private capital investments are proposed at the Port.
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The Port also provides other community‐wide benefits, including:
Participation in local/state governmental partnerships that are providing flexible
funds used for local community development (such as housing assistance and
community amenities).
Providing first‐class meeting facilities for businesses and community groups and
lodging facilities for overnight visitors.
Providing community‐based education and visitation facilities, including the
new SAGE Center.
Providing recreational opportunities with access to the Columbia River.
Maintaining a viable rail and barge transportation network that conserves fuel
and improves air quality in comparison with truck transportation.
Establishing sustainable heat and wastewater recovery systems that conserve
energy and utilize less water.
With increasing world food demand and growing foreign per capita consumption of
U.S. farm and food products, the potential long‐term increase in exports and
economic/fiscal benefits from Port‐related tenants is most promising.
District Needs The Port has opportunities for agricultural and food manufacturing expansion and the
development of its industrial parks. However, long‐term development of these
opportunities could become constrained by a lack of water rights, the need for
wastewater treatment, and stringent regulations. The Port continues to invest in roads,
rail and river terminals, and water and wastewater facilities to support job growth in the
Boardman and East Beach industrial parks. Additional industrial land capacity exists
when future infrastructure improvements are provided to serve the Tower Road/Airport
Industrial Park and the South County/Heppner Industrial Park. To achieve its potential,
the Port must continue to work with its partners at the local, state, and federal levels,
including with the Confederated Tribes of the Umatilla Indian Reservation, to ensure
land development regulations are reasonable and not overly burdensome.
Historically, the Port has worked to assist other communities in the County and provide
them with the equipment and resources for water supply, housing, emergency service
projects and employment site improvements. The Port is actively improving Boardman’s
presentation from the freeway, with the new SAGE Center design presence and tourism
draw from I‐84, and a planned Boardman Industrial Park gateway north of Exit 165 from
I‐84 (Figure 4).
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Figure 4 – Industrial Park Gateway Concept
Community Role As part of developing this Strategic Business Plan, the team gathered input through 16
stakeholder interviews, public meetings, and Port Commission workshops, including a
strengths, weaknesses, opportunities and threats working session. The Port has taken
considerable steps to ensure that the views of local community leaders, businesses, and
residents are heard and reflected within this plan. The plan will be presented to the Port
Commission for review and refinement in June 2013 and will be refined and presented
for adoption by the Port Commission in July 2013.
POLICY CONTEXT VI.
The Port is committed to operation under federal, state, and local policies. An overview
of key policies and compliance items is indicated below.
A. Planning and Environmental Policy Compliance Issues
The state’s policy structure has a significant impact in shaping the future of the Port.
This plan underscores areas of alignment with the state’s policy structure. Statewide Planning Goals Oregon’s land use planning is based on 19 statewide planning goals and applies to state
agencies, local governments, and special districts. The goals expressed in the state’s
policies must be addressed to effectively influence the Port’s land use and economic
development strategies. The Port’s plan is most influenced by Oregon statewide
planning goals 9, 12, and 14.
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.”
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Oregon requires local jurisdictions to maintain a 20‐year supply of employment lands
suitable to meet the needs of local business and industry likely to locate during this
period. The market study for this plan (Appendix D) establishes a combined Morrow
and Umatilla bi‐county need for 1,221acres of employment land to meet forecast growth
over the next 20 years. The Port is likely the largest owner of vacant industrial land in
Oregon. The Port owns more than 12,000 acres, of which 2,500 acres are zoned for future
industrial development. Port tenants include some of the largest food processing
operations in North America. The Port is also home to fiber and seed processing
industries, lumber processing, and transportation facilities.
The Port works closely with local communities and governments to form partnerships
though the Columbia River Enterprise Zone II, which provides limited property tax
abatement to qualified private investment and job creation within the Port District.
These proceeds are to be used for a variety of community facilities and amenities that
will benefit local residents, employers and employees.
In addition, the Port provides meeting facilities for community activities, conferences,
and workshops for its stakeholders and businesses at its headquarters building and the
new SAGE Center. The Port also provides recreational opportunities for access to the
Columbia River, and is working with the City to provide new ballfields for use by
residents and employees. Beyond these investments and activities, the Port has also
provided limited financing for housing and community development, investments that
promote fair housing and telecommunications throughout the Port District.
When compared with truck transportation, the ability of the Port to provide rail and
river/barge transportation for commodities and goods moving into/from Eastern Oregon
provides economic value in the form of fuel consumption savings and air quality
benefits. While such benefits can be measurable, especially over long periods of time,
they have not been quantified for this analysis.
Statewide Planning Goal 12: Transportation “To provide and encourage a safe, convenient and economic transportation system.”
The Transportation Planning Rule, OAR 660 Division 12, requires that cities, counties,
Metropolitan Planning Organizations (MPOs), and state agencies implement statewide
planning goal 12 and prepare and adopt transportation system plans.
The Morrow County Transportation System Plan 2005 (TSP) identifies a number of
improvements, some of which would impact development prospects for the Port.
According to the TSP, the Port continues to be the most significant entity bringing jobs to
the County. Morrow County and the Port have worked closely to identify opportunities
to mitigate impact of this development on the transportation system (see Local and
Regional Plans below for a description of the relevant interchange area management
plans [IAMPs]).
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Statewide Planning Goal 14: Urbanization “To provide for an orderly and efficient transition from rural to urban land use, to
accommodate urban population and urban employment inside urban growth
boundaries, to ensure efficient use of land, and to provide for livable communities.”
The Port is doing its part to add infrastructure in its East Beach Industrial Park to help
Morrow and Umatilla counties accommodate the more than 15,000 jobs on 1,200 plus
acres projected in the high growth scenario over the next 20 years (see Appendix D,
Market Analysis for details).
The Port has the land available, and supportive County zoning districts allow
agriculture and manufacturing to develop with full infrastructure within the port
district. It is important to recognize enabling zoning as an economic development tool
that may be extended within the County to meet additional, future employment land
needs.
Job growth also leads to urbanization and service delivery to accommodate housing.
Morrow County alone is forecast to add 2,220 people between 2015 and 2030, requiring
approximately 825 new dwelling units, assuming the current Census average of 2.69
persons per household. While the provision of urban housing is not a primary port
function, the Port is supportive of urban housing and service delivery within Boardman
and Heppner, as well as other opportunities throughout its district.
Local and Regional Plans Interchange Area Management Plan The Port of Morrow IAMP and I‐84 US 730 IAMP are designed to protect the long‐term
function of the Port and the I‐84/US 730 interchanges. The I‐84/US 730 interchange (Exit
168) is located in a rural area of the County approximately 3 miles east of the Port of
Morrow interchange. The interchange primarily facilitates movements between I‐84 and
US 730 but also provides access to the local County roadway network.
The IAMPs identify land use management strategies, access management goals, and
strategies to fund identified improvements. A total of $10.7 million has been identified
for I‐84 interchange area transportation improvements.
Local Redevelopment Authority (LRA) Plan On November 14, 2008 the Department of the Army determined that 17,055 acres of fee
simple property and 2,674 acres of easements would be available for redevelopment.
The Umatilla Army Depot Reuse Authority was recognized as the planning Local
Redevelopment Authority (LRA) which comprises representatives from the Port of
Morrow, the Port of Umatilla, Umatilla and Morrow counties, and the Confederated
Tribes of the Umatilla Reservation as well as two ex‐officio state representatives.
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The LRA’s redevelopment plan calls for the following land uses: agriculture (655 acres),
wildlife refuge (5,613 acres), military training (7,421 acres), highway commercial
industrial (1,077), interstate corridor (91 acres), industrial restricted (942 acres), and
industrial unrestricted (1,115 acres). The LRA is considering an economic development
conveyance for approximately 3,000 acres in the southern part of the installation.
SITUATIONAL ANALYSIS VII. A. Identify Strengths, Weaknesses, Opportunities, and Threats The project team met with Port Commissioners and staff to conduct a strengths, weaknesses,
opportunities, and threats (SWOT) analysis in April 2013. The SWOT summary is shown below
in Table 2. Table 2 - Strengths, Weakness, Opportunities and Threats
Strengths Weaknesses Location, access, and river Infrastructure including, I-84, rail, river,
water, sewer, power Developable land Port organization Reputation and partners Financial strength Tenant diversity Natural environment
Lack of housing Commercial retail Rural perception Isolated location Workforce training Regulations impact development Concerns about Oregon’s business climate
Opportunities Threats SAGE Center Recreation including new ball fields Additional water rights Blue Mountain Community College bond Workforce training Available vacant land Export potential Water reuse Private investment (pipeline projects) Regional economic development
coordination
Regulations and policies (wastewater/Oregon Department of Environmental Quality, water rights/restrictions)
Environmental concerns (Hanford/Umatilla Army Depot)
Native American Tribes (review process, increased cost to develop land)
Skilled workforce (training needs)
B. Critical Issues
Location and Geography The Port is located near the south edge of the greater Kennewick‐Richland‐Pasco
Metropolitan Statistical Area along the Columbia River. The terrain includes significant
land at low elevations, with some steep topography associated with riverbanks and rock
outcrops. Small cities, relatively inexpensive land/rent levels, consistent winds, and
access to agricultural areas make this an attractive area for value‐added agricultural
production, wholesale trades, and energy development. The Union Pacific mainline,
Columbia River barges, and I‐84 connect the Port’s industries to local, regional, and
international markets.
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Quality of Life and Business Incentives Good jobs, recreational access, low‐cost living, small‐town character, and favorable
infrastructure affect residents and businesses located within the port district positively.
Competitive land/development costs and favorable electric power and water rates also
benefit major employers in the port district.
Partnerships between the Port, Business Oregon, and the County and City through the
state‐sponsored Columbia River Enterprise Zone II provide limited property tax
abatement in return for guaranteed private capital investment and job creation. Private
development on Port and private properties within the enterprise zone has generated
eight applications over the past 2 years, and is expected to create in lieu payments of
over $1 million annually to be used for community development investments.
C. Demand Analysis
Economic Strengths and Weaknesses The physical, economic, demographic, and infrastructure characteristics of the Port
district set the framework within which businesses can establish themselves and grow.
An analysis of the Port district in the context of the broader regional or state economy
can help narrow the list of target industries as well as identify where policies could be
adjusted to help remove barriers to job creation.
D. Port Industrial Opportunity Sites
The Port manages 8,000 acres of land, primarily located in the Boardman/East Beach,
Airport/Tower Road, and South County/Heppner old mill site locations. These
industrial sites have ample capacity to address the growing demand for agriculture,
food manufacturing, energy, and related industries discussed in this section that may
rely on the port district’s crop‐growing weather and soils, ample freeway, river and rail
transportation access, and shipping demands, given ongoing investments in
infrastructure over time.
In addition to co‐generation and ethanol production, the wind energy economy is
expanding in Eastern Oregon and Washington. According to the America Wind Energy
Association, a dozen existing and proposed wind energy projects in Washington and
Oregon are within 20 to 150 miles of the Port. These facilities are planned to include over
2,500 wind turbines and to provide a planned maximum capacity of nearly 3,940
megawatts of power.
The industrial clusters within the County that appear most viable for long‐term
expansion are based on an analysis of existing enterprises that are already concentrated
in the Port area. The industrial sectors that appear consistent with future job growth and
development within the Port include:
Grain and root vegetable farming
Warehousing and storage
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Food processing
Repair and maintenance contractors
Energy generation
Agriculture support services
Wholesale Trade
Wood product manufacturing
Waste management
Data centers
Truck, rail and barge transportation
Building materials and farm products
Consideration of commodity export trends may also help identify prospective industrial
activities. Within the list of the top Oregon exports, the commodities and goods that can
be produced or shipped from the Port may include:
Wheat and grain exports ($1,962 million in Oregon exports)
Potassium chloride production ($1,063 million in Oregon exports), which is used
for fertilizer as well as biomedical purposes
Soybean exports ($183 million in Oregon exports)
Hay/clover exports ($175 million in Oregon exports)
Wood chips ($103 million in Oregon exports)
Frozen/freeze‐dried foods
Energy‐related commodity supplies (ethanol, coal, etc.)
These and other industrial sub‐clusters are prime candidates for future marketing efforts
by the Port and its regional partners.
Retail Target Market Opportunities FCS GROUP analyzed retail supply and demand within the primary market area, which
is defined as the area within a 20‐minute drive of Boardman. There is significant annual
retail sales leakage from the local area amounting to over $35 million. Almost every
store group type experienced net retail leakage or trade outflow.
The store groups that are the most under‐represented (local residents going outside the
primary market area to make purchases) include motor vehicle and parts dealers ($12.1
million in trade outflow); general merchandise stores ($8.9 million in trade outflow);
food service/drinking places ($7.0 million in trade outflow); food & beverage stores ($5.6
million in trade outflow); clothing/accessory stores ($2.0 million in trade outflow); and
electronics/appliance stores ($1.8 million in trade outflow).
These high levels of retail trade outflow may justify a major opportunity for retail
development by the Port or private investors at this time. Excluding the motor vehicle
and parts category, there is a total retail outflow of $16.1 million in retail trade and $7.0
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million in food and drinking trade. If we assume a 50% capture rate and annual average
sales per square foot of $450, then there is current market development potential for
approximately 18,000 square feet of general merchandise and 8,000 square feet of
food/restaurant development floor area today. This may equate to the development
potential of a small general merchandise store (e.g., BiMart) plus a small food store and
a two new restaurants in the Boardman area.
Development Overview The recently opened SAGE Center was developed in cooperation with other community
businesses and organizations to provide an interactive visitor center showcasing the
region’s industries and resources. Visitors of all ages can explore the diversity of the
region’s farming, food, and energy economy and learn more about the global
transportation facilities that link the region’s products to global marketplaces.
Recently announced private capital investments include, but are not limited to:
ConAgra Foods $211 million expansion of its Boardman frozen potato processing
plant with plans to add over 100 new employees to the area. This facility is
expected to support approximately 6,000 acres in potato farming throughout the
region.
Growing ethanol and bio‐fuels production with investment in Pacific Ethanol’s
42‐million gallon facility, ZeaChem’s 25 million gallon bio‐fuel facility, and the
ethanol load‐out terminal operated by Tidewater Terminal.
Expansion of the Tillamook County Creamery Association cheese processing
facility in Boardman with an investment of $100 million for a 63,000‐square foot
processing facility, housing 35 jobs. The facility expansion will add lactose and
whey processing capabilities to Tillamook’s existing cheese making plant.
The addition by VaData of two computer data centers in the Port’s industrial
area.
E. Priority Projects
The following projects have been identified as priorities to support Port industrial
development (see Section 8(E) below for the entire capital improvement plan).
East Beach Industrial Park
730 Interchange for Industrial Park Access
East Beach 2 Million Gallon Storage Tank
Gar Swanson Lane
Lewis & Clark Road Extension
Lewis & Clark Utility Extension
Morrow East Beach Sewer
Rail Improvements
Rail to Industrial Site
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Rail to Warehouse
Industrial Park Gateway at Columbia Avenue
Boardman Industrial Park
Area Interchange Management Plan, Port Interchange improvements
Columbia Avenue Utility Extension
Certified Site Access Road
F. Risk Analysis
Table 3 - Risk Analysis Action Risk Notes
Secure Additional Water Rights
Lack of water for expansion of agricultural and manufacturing uses
Additional water rights (needed to support expanded agriculture and manufacturing opportunities) are a long-term objective for the Port, and require ongoing political and legal processes to secure.
Industrial Wastewater Treatment Plant
Lack of land and high nitrogen content in soils could limit land applied industrial wastewater method in the future.
There are limitations to land application of industrial wastewater, based in part on Oregon Department of Environmental Quality regulations, and land availability. One long-term solution is a future industrial wastewater treatment plant.
Water Conservation and Reuse
Extending the life of current system, with push back the need for an expensive treatment plant.
The Port recently expanded its wastewater treatment pond substantially, and continues to modernize and conserve water usage as a method of optimizing current water availability to support agricultural and industrial expansion, protect the environment, and delay the future needs for costly acquisition of water rights and a wastewater treatment plant.
Promote Reasonable Regulatory Approach
Over-regulation delays projects and adds development costs, so regulations must remain reasonable or they will impact growth.
The Port will continue to take an active role in legislation that will impact the Port’s ability to fulfill its mission of job creation, with a focus on reasonable regulations that do not cause undue cost or delay while balancing environmental stewardship with economic development objectives.
Boardman Community Development
70% of local employees commute to Boardman, and likely invest less in the community than they would if it were their home. Creating housing, shopping, and recreation will likely reduce commutes and increase local investment in Boardman.
Secondary to its primary mission of job growth, the Port actively supports community development efforts throughout the port district. These include housing, community services (ballfields), and attractions (gateways) to improve Boardman as an attractive community for locating existing and new employees,
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STRATEGIC BUSINESS PLAN VIII.
Port Mission
The following is a proposed revision of the Port’s mission statement, subject to review
and refinement by the Port Commission.
The Port of Morrow is the region’s economic development leader, and works closely
with businesses and organizations to create family wage jobs. The Port maintains a
positive business environment; develops water sources; provides and expands utility
services; provides surface, water and air transportation facilities and services; and
continues to expand its role as a regional transportation hub. The Port is focused on
fully developing industrial, commercial and community development potential while
supporting the region’s quality of life.
To implement the Port’s mission, the Port Commission has developed a business plan
with five strategic sub‐plan elements, including goals and implementing strategies for
each. These goals and strategies are influenced by critical success factors and
management and business principles, adapted from the 2012 plan and presented below.
Specific goals and strategies for management, financial, capital facilities, environmental,
and marketing plan elements follow, including updates to the 2012 plan.
A. Critical Success Factors influencing Port Strategies
For every strategy pursued by the Port, certain elements, conditions, or events are
critical to success. Failure to contain, accomplish, or properly influence these items will
generally result in strategic failure. Identification of these factors and the development
of effective mechanisms to manage them are paramount to success. The highest priority
will be placed on projects and initiatives bearing on the Port’s critical success factors:
Control over availability and use of an adequate long‐term supply of quality
water.
Control over the means and use of an effective effluent discharge system.
Identification, effective development, and sustenance of adequate sources of
investment funds.
Control over the use and development of Port properties.
Development and implementation of reasonable environmental regulations and
permitting practices by local, state and federal agencies.
Maintenance of competent Port management team and staff of adequate size to
implement Port Commission direction and projects.
B. Management and Business Principles
To provide guidance and consistency during the implementation of the Port’s business
strategies, the Port Commission has developed a set of management and business
principles. These principles will provide a basis for ensuring that limited time and
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resources are allocated effectively. The Port’s management and business principles
include:
Enhance market position by providing superior facilities and quality of service.
Accept reasonable risk when pursuing development opportunities.
Aggressively monitor and actively influence federal state and local policies
affecting port business.
Establish lease rates based on an expected annual return on current value and
subject them to periodic review by the Commission.
Lease, rather than sell, port industrial properties for development.
Manage the Port’s financial resources and physical assets to maximize long‐term
economic development benefits.
Manage plant and equipment investments based on “minimum life cycle cost.”
Treat all citizens and customers in a fair, equitable, and consistent manner.
The business goals and strategies, critical success factors, and management and business
principles discussed above provide the setting for the Port’s Strategic Business Plan
goals and strategies, presented in the following section.
C. Management Plan
Goal: Maintain superior organizational capabilities to help the Port meet its mission.
This includes support for three key organizational capabilities: personnel, systems,
and heavy equipment.
Strategy 1: Maintain an adequately trained staff and Commission to meet the
Port’s operational demands. The Port is currently served by five Port
Commissioners and 33 full‐time and seven seasonal temporary employees.
Strategy 2: Build a management staff that includes the professional engineers,
planners, and financial, economic development, intermodal terminal, and
construction specialists needed to maintain the Port’s operations.
Strategy 3: Adopt a budget that includes adequate training to meet professional
growth objectives that serve the Port, including maintenance of professional
degrees, and relevant seminars and conferences.
Strategy 4: Provide progressive computer and management information systems.
The Port is a leader in technology, and has invested in upgrades to its
management systems, graphics and presentation capabilities, computer systems,
and sundry equipment.
Strategy 5: Maintain and manage the Port’s fleet of heavy equipment used for
roadway and infrastructure development. Enhance maintenance and
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management efficiencies through a well‐designed equipment maintenance
facility.
D. Financial Plan
Goal: Support the Port’s goal of job creation through ongoing financial stability.
Strategy 1: Maintain an operating reserve of 90 days of expenditures in the
enterprise fund.
Strategy 2: Develop a policy to set target return on investment expectations for
real estate transactions. For example, sales or leases of Port‐owned property or
facilities could be expected to return 8‐10% annually based on the Port’s
investment expenditures and proceeds for a specific project.
E. Capital Improvement Plan
Goal 1: Expand the Port’s role as the regional transportation hub by providing
superior facilities and services.
Strategy 1: Improve the quality and capacity of existing water terminal facilities
and services so as to ensure preeminence as the Upper Columbia River shipping
center.
Strategy 2: Develop and implement projects and services that ensure adequate
inland transportation access and service by improving roads within the Port’s
industrial parks and increasing access to state and federal highways.
Strategy 3: Improve the quality and capacity of rail facilities and service to
ensure preeminence as rail shipping hub for domestic and international
destinations.
Strategy 4: Develop the airport’s potential as a regional and international cargo,
and business support facility.
Goal 2: Fully develop the business and employment potential of the Port’s industrial
properties.
Strategy 1: Promote ʺhighest useʺ development of industrial properties by
encouraging businesses and site users identified within the Port’s Strategic
Business Plan.
Strategy 2: Enhance and maintain the quality of industrial properties and leased
business facilities, and promote the Port’s competitive regional industrial
location.
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Strategy 3: Acquire property which effectively supports the Port’s strategic
business direction.
Strategy 4: Strive to reinvest proceeds from land sales into facilities and/or land
acquisition(s) that support the Port’s mission.
Goal 3: Fully develop and maintain additional water rights for future development
activities.
Strategy 1: Promote effective use of water while complying with water
management and conservation plans and policies.
Strategy 2: Maintain and improve water quality.
Strategy 3: Support and develop water re‐use strategies.
Goal 4: Maintain and develop utility services that efficiently and effectively support
regional development and port customers.
Strategy 1: Enhance and maintain the quality, safety and cost effectiveness of
utility services.
Strategy 2: Acquire property and resources that effectively support the Port’s
Strategic Business Plan policies and customer service philosophy.
Goal 5: Support development of the tourism, recreation, education and public facility
potential of the region.
Strategy 1: Support regional tourism, recreational, educational and economic
development efforts.
Strategy 2: Establish facilities to develop the tourism, recreation, education,
public facility and convention potential of the port’s waterfront properties.
Goal 6: Support community economic development activities which enhance
employment creation and sustain the district’s quality of life.
Strategy 1: Support community‐based economic development activities, with
available resources.
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Strategy 2: Provide Port management and staff with appropriate resources to
effectively and efficiently plan, organize, and accomplish regional development
and community support activities.
Goal 7: Develop and maintain a 5‐year capital facilities plan to provide infrastructure
needed to meet the Port’s mission for job growth and retention.
Strategy 1: The 5‐year capital facilities plan within this Strategic Business Plan
will be reviewed, refined, and adopted.
Strategy 2: The Port will maintain and update its 5‐year capital facilities plan
annually to reflect new project cost information, grant opportunities and for cost
indexing purposes.
Strategy 3: New capital improvement plan (CIP) projects found to be consistent
with this Strategic Business Plan may be added during annual updates.
The CIP is presented in Table 4 below. Detailed project descriptions and annotated site
maps are available and maintained at the Port offices. The Port will maintain and update
the CIP and project details as needed, annually.
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Table 4. Port of Morrow Capital Improvement Plan
Projects by Area May 2013 Cost
Estimate Priority Notes Airport Airport Apron Lighting $ 43,000 1 Airport GPS $ 131,000 1 Airport NAVAIDS $ 48,000 1 Airport Perimeter Fencing $ 191,000 1 Airport Runway Vertical / Visual Guidance System $ 112,000 1 Airport Taxiway Construction $ 1,790,000 1 Airport Water Improvements $ 833,000 1 Airport Hangars & Fuel $ 716,000 1 subtotal $ 3,864,000 East Beach 730 Interchange for Industrial Park Access $ 7,000,000 high 1,2 East Beach 2 Million Gallon Storage Tank $ 2,088,000 high 1 East Beach Street Lights $ 89,000 1 Effluent Extension to Poplar Plantation $ 2,500,000 1,2 Gar Swanson Lane $ 1,104,000 in process 1 Gar Swanson Lane Utility Extension $ 608,000 1 Lewis & Clark Road Extension $ 1,074,000 in process 1 Lewis & Clark Utility Extension $ 447,000 high 1 Morrow East Beach Sewer $ 358,000 high 1 Morrow Fire Protection and Pump Relocation $ 1,943,000 1 Morrow Fresh Water Main Line Expansion $ 328,000 1 Morrow Fresh Water New Well Development & Distribution Lines $ 1,104,000 1 Morrow Warehouse Distribution Facility $ 4,500,000 1,2 Rail Improvements $ 8,053,000 high 1 Rail to Industrial Site $ 352,000 high 1 Rail to Warehouse $ 215,000 high 1
Industrial Park Gateway at Columbia Avenue $ 350,000 high subtotal $ 32,113,000 Boardman Industrial Park Area Interchange Management Plan, Port Interchange improvements $ 750,000 high Columbia Avenue Utility Extension $ 394,000 high 1 Marine Drive Property Development, Road Improvements $ 1,312,000 1 T-3 Terminal Expansion Project $ 613,000 1 Terminal 1 Transloading Facility $ 8,948,000 1 Certified Site Access Road $ 895,000 in process 1 Riverfront Outdoor Sports Park $ 1,400,000 subtotal $ 14,312,000
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Projects (continued) May 2013 Cost
Estimate Priority Notes Miscellaneous Projects Transient Dock $ 680,000 1 Morrow Heritage Trail $ 313,000 1 Port Signage $ 60,000 1 Shop Expansion $ 143,000 1 subtotal $ 1,196,000 Other High Nitrogen Water Redistribution Project $ 733,000 1 Regional Water Quality Improvement Project $ 895,000 1 Wastewater Screening $ 3,000,000 2 Wastewater Aeration $ 750,000 2 Water System Emergency Power Generation $ 300,000 1,2 subtotal $ 5,678,000 Grand Total $57,163,000 NOTES: 1) 2013 Cost Estimate developed from 2012 Strategic Business Plan. Estimates were increased from base estimate year using the ENR Construction Cost Index data and rounded to the nearest $1,000. 2) 2013 estimates updated or produced by the Port of Morrow.
F. Environmental Plan
Goal: To maintain environmental stewardship as the Port manages and develops its
land and in‐water facilities.
Strategy 1: Meet local, state, and federal environmental laws in developing and
managing Port assets.
Strategy 2: Be an active participant in environmental legislation that impacts Port
property in order to advocate effective, yet streamlined, regulations impacting
land development projects.
Strategy 3: Work with agencies and partners to identify and consider Port
participation in environmental enhancement projects that benefit the local
environment, particularly those that both conserve resources and support
agricultural production.
G. Marketing Plan
Goal: Showcase Morrow County’s agriculture, technology, and energy production
capacity to regional, national and international companies.
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Strategy 1: Use the SAGE Center together with state venues and trade and real
estate publications to raise the awareness of Morrow County success stories and
its ongoing industrial development capacity.
Strategy 2: Market the Boardman and East Beach industrial parks for current
industrial site expansion where service extensions are ongoing and current
capacity for development is high.
Strategy 3: Target aviation‐related and military‐based facilities that would
benefit by locating on the Tower Road Airport Industrial Park, and who have the
scale and assets to help develop its infrastructure.
Strategy 4: Track demand and interest from potential users of the South
County/Heppner Industrial Park, including less transportation‐dependent user
spin‐off potential from the Boardman area.
DEVELOPMENT ACTION PLAN IX.
The development action plan presents projects identified by the Port Commission that
have potential for contributing to the accomplishment of the Port’s mission. These
projects were analyzed through the Port development planning process and then
prioritized for implementation. This prioritization is the Port’s action plan. The
organizational and financial requirements resulting from this plan were then examined
to ensure that the necessary management, financial, and administrative resources and
mechanisms are, or will be, in place to effect proper project implementation.
A. Port Development Planning Process
Recognizing that the Port’s need and ability to develop opportunities normally exceeds
available resources, the Port Commission has established a development planning
process. The purpose of this process is to assess all potential development projects
efficiently and effectively in a consistent manner. This process will allow the
Commission to determine Port project development priorities in a manner which
ensures the most effective use of limited resources.
The development planning process consists of a four‐phase review of all potential
development projects. The four‐phase review consists of the following:
Business Setting Assessment,
Business Condition Review,
Critical Success Factor Assessment, and
Business Priorities Analysis
Figure 5 illustrates the Port’s development planning process.
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PROPOSED PROJECTS FOCUS BENEFITS IMPACT COST
BUSINESS SETTING MISSION GOALS BUSINESS STRATEGIES BUSINESS PRINCIPLES
CRITICAL SUCCESS FACTORS CONTROL & USE OF WATER CONTROL OF IRRIGATION
DISCHARGE CONTROL OVER DEVELOPMENT
& USE OF PORT PROPERTY REASONABLE ENVIRONMENTAL
REGULATIONS QUALITY MANAGEMENT & STAFF
BUSINESS PRIORITIES BUSINESS INITIATIVES DEVELOPMENT PROJECTS
IMPLEMENTED PROJECTS
BUSINESS CONDITIONS
MARKET SETTING
COMPARATIVE SETTING
MANAGEMENT AND OPERATIONS CAPABILITIES
FINANCIAL SETTING
Figure 5 - Port of Morrow Development Planning Process
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B. Port Development Projects
Port Commissioners and staff have identified key projects important to the economic
health of the port district and the continued growth of the Port. Equally as important are
policy considerations that have been identified and must be addressed. Some of these
projects have been funded while others are presently in the planning stage. In addition,
projects which address needs or opportunities identified during the preparation of this
plan are included. Identified projects are organized consistent with the Port’s strategic
business goals and associated strategies. The universe of currently identified potential
projects is presented below. These projects are listed under the goals and strategies that
support them.
C. Capital Projects by Goal and Strategy
Goal 1: Expand the Port’s role as the regional transportation hub by providing
superior facilities and services.
Strategy 1: Improve the quality and capacity of the Port’s existing water terminal
facilities and services so as to ensure its preeminence as the Upper Columbia
River shipping center.
T‐3 terminal expansion project
T‐1 trans‐loading facility
Strategy 2: Develop and implement projects and services that ensure adequate
inland transportation access and service by improving roads within the Port’s
industrial parks and increasing access to state and federal highways.
Marine Drive property development, road improvements
IAMP, Port interchange improvements
Highway 730 and I‐84 interchange
Tower Road development plan
Port of Morrow Gar Swanson Lane (HB 2001)
East Beach street lights
Port of Morrow Lewis & Clark road extension
Industrial Park gateway improvements
Strategy 3: Improve the quality and capacity of rail facilities and service to
ensure the Port’s preeminence as rail shipping hub for domestic and
international destinations.
Rail spur and expansion projects
Pursue third party switching agreement
Pursue funding to continue improvements consistent with Rail Master
Plan
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Strategy 4: Develop the airport’s potential as a regional and international cargo
and business support facility.
Future airport improvement projects
Future airport water improvements
Goal 2: Fully develop the business and employment potential of the Port’s industrial
properties.
Strategy 1: Promote ʺhighest useʺ development of industrial properties.
East Beach 2 million gallon water storage tank
Strategy 2: Enhance and maintain the quality of industrial properties and leased
business facilities and promote them as the competitive regional industrial
location.
Freshwater main line expansion
Marine Drive infrastructure enhancements
Port signage
East Beach infrastructure extension
Morrow freshwater new well development and distribution lines
Morrow fire protection and pump relocation
Strategy 3: Acquire property which effectively supports the port’s Strategic
Business Plan.
• Morrow warehouse distribution facility
• Strategic property acquisition
Goal 3: Fully develop and maintain additional water rights for future development
activities.
Strategy 1: Promote effective use of water while complying with water
management and conservation plan.
Strategy 2: Maintain and improve water quality.
Strategy 3: Support development of water conservation and re‐use strategies.
Goal 4: Maintain and develop utility services that support regional development and
Port customers efficiently and effectively.
Strategy 1: Enhance and maintain the quality, safety, and cost effectiveness of
utility services and Homeland Security.
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Morrow water storage system
Wastewater improvements
Water system emergency power generation
Columbia Avenue utility extension
Lewis & Clark utility extension
Gar Swanson Road utility extension
Regional water quality improvement project
Landscaping water usage analysis
Strategy 2: Acquire property and resources that effectively support the Port’s
Strategic Business Plan policies and customer service philosophy.
• High nitrogen water redistribution project
• North Tower Subdivision well
• Strategic property acquisition, sales, and/or reinvestment
Goal 5: Support development of the tourism, recreation, education, public facility,
and convention potential of the region.
Strategy 1: Support regional tourism, recreation, educational and economic
development efforts.
The Port has made an on‐going commitment to economic development through
the County’s economic development organization, leadership in regional
strategies, and active support of port district and regional development activities
and projects. The Port recognizes these are not self‐supporting activities but are
essential for the overall mission and goals the Port has established.
• SAGE Center
• Transient dock facility
• Riverfront outdoor sports complex
• Morrow Heritage Trail
Strategy 2: Establish facilities to develop the tourism, recreation, education,
public facility, and convention potential of the Port’s waterfront properties.
Goal 6: Support community economic development activities which enhance
employment creation and sustain the district’s quality of life.
Strategy 1: Support community‐based economic development activities, given
available resources.
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The Port Commission and staff will continue to provide their historic and
customary level of support.
Strategy 2: Provide Port management and staff capability, with appropriate
resources, that will plan, organize, and accomplish regional development and
community support activities effectively and efficiently.
Strategy 3: Provide enterprise zone sponsorship
Goal 7: Develop and maintain a 5‐year CIP to provide the infrastructure needed to meet
the Port’s mission for job growth and retention.
Strategy 1: Maintain a 5‐year CIP.
D. Development Implementation Summary
The Port Commission will utilize the development planning process presented above to
continue to select and refine top development projects to address its primary business
elements:
• Regional transportation hub expansion,
• Industrial properties development,
• Utility service development,
• Tourism, recreation, education, and public facilities development support,
and
• Community economic development support.
This focus recognizes the Port’s historic activities and success while using its
competitive and location advantages as the basis for future port district growth. In
addition, this approach reinforces the development initiatives of other organizations and
is expected to result in the greatest potential economic and employment return from
anticipated business opportunities and available investment resources.
To support this effort, the Port Commission has recognized the need for both long‐term /
contingency planning and development of an efficient and effective Port management
team and staff. Commitment of limited resources to these items results from the
Commission’s recognition that comprehensive planning and a strong Port team are
essential tools for the full development of both current and future opportunities.
E. Action Plan Implementation
Given the Port’s recent success and strong competitive position, unforeseen
opportunities are expected to surface during the current strategic planning period. The
Port recognizes that the key to maximizing benefit from its current strategic plan is to
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both follow the plan and address future unforeseen opportunities through a deliberate
decision‐making processes based on the following:
• Port mission,
• Business and management principles,
• Critical success factors,
• Goals and strategies, and
• Consideration of:
o Review all business opportunities in light of the Port’s strategic
foundation presented above
o Analyze business opportunities at least annually, or whenever new
opportunities arise, to confirm or reorder priorities
o Ensure each project is financially viable
o Assess potential for leveraging opportunities for maximum employment
and business activity benefit to the port district
o Identify opportunities to improve/extend the level and value of Port
services
o Overall consistency with, and/or ability to be integrated into the Port’s
Strategic Business Plan
The Port’s Strategic Business Plan will be updated as needed, with an annual review of
capital improvement projects and cost estimates. The plan’s goals and strategies will be
revisited for needed updates every 5 years, and a complete plan update will occur every
10 years.