Economic Profile

Redmond's location at the geographic center of the region makes it a natural hub for a variety of things such as the region's commercial airport, exposition center at the new $37 million Deschutes County Fair & Expo Center, and regional Manufacturing & Applied Technology Training Center on the Central Oregon Community College's Redmond campus. Economic development is the City Council's number one goal. Local leaders are poised for industrial expansion by supporting a long list of improvements to ensure that Redmond continues to be a great place to live and do business.

Capital Development
Employment
Industrial Land Costs
Taxes
Redmond Enterprise Zone

Capital Development

Redmond's 84% population growth during the seven years ending in 2007 has generated a hotbed of development. Beginning in mid-2003 numerous new, end-user and spec industrial buildings were constructed. Dozens of new residential and industrial subdivisions, retail centers and significant public improvements have been planned, underway, or completed. For example, the Redmond Airport, the region's hub for scheduled commercial air service, in 2003 completed a $10 million taxiway and ramp improvement, in 2006 doubled the parking lot capacity to over 1,100 vehicles and construction is underway to quadruple its terminal size to over 130,000 square feet. The new terminal is estimated to cost over $30 million with completion in 2009. Commercial flight service expanded in 2005 with direct service to Salt Lake City and again on August 1, 2006 adding direct flights to Los Angeles (LAX) and Eugene, OR. This was followed by new direct flights to Las Vegas. Over 20 direct flights depart daily to Seattle, Portland, San Francisco, Los Angeles, Eugene, OR, and Salt Lake City. Twice weekly flights go directly to Las Vegas and seasonally weekly to Denver.

The $90 million US Hwy 97 re-route around Redmond’s city center has been in the planning stages for more than 10 years and is now open for traffic. The Hwy 126 Highland-Glacier Couplet construction was completed in 2006. Urban Renewal District funds were used to complete a Downtown Action Plan that is now being implemented. Design Standards have been determined and cash incentive programs are being used to assist landlords in upgrade their existing buildings. Several downtown store renovations have been completed and others are underway. These projects compliment several other finished and additional projects including a $1.2 million downtown revitalization effort, a downtown development master plan, a new 5th and 6th Street traffic plan and a new Centennial Park and City Hall.

The approximate 10,000 acre city has expanded its developable lands or Urban Growth Boundary (UGB) by 2,400 acres or 24% in 2006. Planning and annexation of large parcels of property has begun. The property will be scheduled for annexation as water and sewer lines are installed and necessary street expansion is in place. The primary zoning will be for home construction with 100-150 acres of the total for commercial and light industrial uses.

Completed in 1999, the $37 million 230 acre Deschutes County Fair & Expo Center continues as Central Oregon's premier event, conference, trade show & performance center. It hosts large-scale national events such as the Family Motor Coach Association jamboree, national rodeos and horse shows, and smaller regional sport and recreation equipment shows, headliner entertainers and business conventions. The Portland Trailblazers National Basketball Team conducts pre-season games in the Hooker Creek Events Center on the site.

West - expansion of Eagle Crest in 2003, the region's second largest destination resort supporting three golf courses with another 900 home sites. Just west of Eagle Crest, the Thornburgh resort is in the approval process for development with 950 home sites, 475 overnight lodging units and three golf courses.

East - Brasada Ranch sold out the first two stages of its 1,800 acre, 900 home sites development when it opened in 2005. The 18-hole championship golf course is in play. Three additional resorts are in various stages of development, all near Powel Butte located 7 miles east of Redmond. Remington Ranch, 2,100 acres, is open for sales, Hidden Canyon and Crossing Trails are in the approval process.

Southeast - a $150 million upscale resort, Pronghorn, is well underway. The resort features two 18 hole golf courses designed by celebrated golfers Jack Nicklaus and Tom Fazio. The 640-acre resort offers 480 homesites, 180 condominiums, a 10,000 square foot convention facility, overnight accommodations and other visitor amenities.

North - The Ranch at the Canyons includes a very limited number of private 10 acre landholdings, along with mutual ownership of the entire 1,700 acre secured property. The site offers natural splendor, old world Tuscan/Napa design and abundant recreation on the working estate located adjacent to the world renowned rock climbing area Smith Rock.

Clearly, Redmond and its outlying areas are the proverbial "land of opportunity" for future development, and it is expected that it will continue to outpace the rest of the region, state and Pacific Northwest in terms of growth and commercial, retail, residential, and industrial development.

Taxes

**After passage of Measure 50 in 1997, Oregon tax rates were pegged at 90% of 1995 real market values, with an allowable 3% increase each year. New property and improvements to property are taxed at the value ratio: 46.9% for industrial, 40.0% for commercial and 43.0% for residential.

Employment

Despite being the second-largest city in the region, Redmond is dominated by small employers. The largest private manufacturing employer, PCC Schlosser has 229 workers, while the largest private employer overall is T-Mobile, a wireless telephone customer care center with 824 employees. This presents some advantages for both large and smaller employers. For smaller firms, there exists a team spirit of working together as a unit - a "get it done" mentality that typifies the culture of small enterprises. For larger employers, this can-do attitude can be a big advantage versus a more established corporate culture that is found in many large cities. As noted in other sections, unionization in Central Oregon is very rare - due in part to the smaller size of businesses and also because it has never been a significant part of employment in the region.

Industrial Land Costs

The diversity of Central Oregon communities is reflected in the industrial sites offered. For instance, within a half-hour commute, the asking price for serviced bare industrial land for purchase may vary from $2.00 to $15.50 per square foot. Developed industrial land in Redmond has an average asking price of $7 to $7.50 per square foot depending on zoning and location. There are heavy industrial parks and high-tech business campuses, small flex-space commercial/light industrial complexes and stand-alone manufacturing buildings ready to occupy. The City of Redmond offers its 128 acre Desert Rise Industrial Development at an incentive rate in five acre or larger parcels to end users. Driven by compensation, density of jobs per acre and building and equipment capital investment, a below market price can be obtainable. End users must obtain building permits and gain occupancy in a timely manner. Contact Redmond Economic Development for more detailed information at (541) 923-5223. Industrial Lease rates in Redmond range from $0.35/SF to $0.76/SF for industrial warehouse space. Office space in the same building can be included for the same rate or is priced separately from $1.00/SF to $1.10/SF.

Find more information on available industrial sites in Redmond.

Enterprise Zone

The city of Redmond is one of three designated Oregon Enterprise Zones in the Central Oregon region. This non-bureaucratic program is administered in Redmond by the City of Redmond. The program in Prineville/Crook County and Madras/Jefferson County is administered by Economic Development for Central Oregon (EDCO), website, www.edcoinfo.com. It is designed to assist new and existing manufacturing and warehouse/distribution firms with expansion through 100% property tax exemptions on qualified investments (new buildings, remodels, and equipment) during the first 3 to 5 years of that investment. After the exemption expires, the building and/or equipment are picked up on the tax rolls at the depreciated rate.

The Redmond Enterprise Zone program is also designated at an E-Commerce zone which offers the added incentive to predominately e-commerce retail businesses qualifications for the regular Enterprise Zone property tax benefits. The company will be eligible an Oregon income tax credit of 25% of its qualifying capital investment.

The Redmond Enterprise Zone also offers an additional benefit package including: Discounted fees depend on job creation to include up to 75% off building permits, up to a 25% discount on System Development Charges, and a 25% reduction in monthly water and sewer usage charges. It further offers 100% waived fees for water deposit, water hook-up for sprinkler systems, domestic water, and sewer, as well as rock excavation deposit. Other waived fees include conditional use fees, partitioning fees, plan amendment fees, site and design review fees, and a variety of other public works related fees.

For a full brochure (in PDF format) on the Redmond Enterprise Zone. If you would like to have more information regarding the Redmond Enterprise Zone Program, please contact the Redmond Economic Development at (541)923-5223 or Heather Richards, City of Redmond Enterprise Zone Manager, at (541)923-7756.