Strategic Business Plan Vol II

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



Boardman, Oregon Page ii of iii

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



Boardman, Oregon Page iii of iii

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



Boardman, Oregon Page 1

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.




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.




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




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




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.




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.




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.




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




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




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.




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.




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).




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.”




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]).




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.




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.




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




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




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




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,




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




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




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.


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.




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.


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.


employment creation and sustain the district’s quality of life.

Strategy 1: Support community‐based economic development activities, with

available resources.




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.




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




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.




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.




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




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




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


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


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.




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.


employment creation and sustain the district’s quality of life.

Strategy 1: Support community‐based economic development activities, given

available resources.




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




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.

Documents

Strategic Business Plan Vol II