THE MONTH IN BUSINESS.

Byline: The Register-Guard

Developer looking to buy homes to raze them

Developer John Musumeci is looking to buy dozens of properties on Kinney Loop, a plat of homes north and west of Musumeci's new Crescent Village mixed-use development.

Arlie & Co., a company run by Musumeci and his wife, Suzanne, has bought up eight houses on the outside of Kinney Loop over the past two years. John Musumeci says he's using the property for amenities for residents of his upscale apartments, including a dog park, a Japanese garden, community vegetable gardens and a children's playground.

But the developer's bigger ambition is to buy up the 24 more homes, raze them and replace them with affordable and subsidized housing, he said.

Arlie will pay market price plus a premium and closing costs for willing sellers, Musumeci said.

RV-maker cuts pay, citing fall off in demand

Country Coach CEO Jay Howard has cut his salary by 25 percent and imposed a 5 percent pay cut on all employees.

The pay cut "brings a couple million dollars into the company that we will need to make sure we are sustainable going forward," he said. "Demand is very low in the entire industry. We owe it to our employees, our customers and our legacy to ensure we do everything we can to survive, to be healthy."

The Junction City RV-maker employs around 1,300 workers. In March, Country Coach said it was laying off 8 percent of its work force - estimated to be about 100 people - because of difficult market conditions.

Eugene biotech company reaches marketing, science deals

MitoSciences, a local biotech company founded by two scientists at the University of Oregon, is on track for some rapid growth.

The company's products, which enable researchers to monitor the health and function of mitochondria - the energy centers of cells - have implications treating diseases such as cancer and diabetes.

The company, located in the Riverfront Research Park, said it will pay the UO more than $4.6 million over the next decade for exclusive rights to commercialize a number of biotech innovations. MitoSciences also said Invitrogen, a California-based company with a facility in west Eugene, will be the exclusive distributor in North America of Mito-Sciences' products. The deal greatly expands MitoSciences' marketing reach.

MitoSciences has 23 employees and probably will have at least 30 by the end of the year, the company said.

Council pushes research park?as hospital site possibility

Eugene city councilors voted 5-2 to continue to support the University of Oregon's Riverfront Research Park as a site for McKenzie-Willamette Medical Center to move to.

City staff recommended that they forget about the research park and instead focus on either of two parcels in northeast Eugene that hospital officials say they have interest in. The councilors asked staff members to return by the end of May with an update.

Pacific Continental reports profit increase

Pacific Continental Corp., the holding company for Pacific Continental Bank, reported a 2.8 percent increase in profit for the first quarter of this year, compared to the same time a year ago.

Eugene-based Pacific Continental reported a net profit of $3.1 million in the first three months of the year. Earnings per share were 26 cents, 4 percent more than a year ago.

The company's earnings from its core operations were $12.6 million, up 12.1 percent from a year ago.

The company reported record quarterly loan growth for the first three months of 2008. Loans grew by $42.9 million during the first quarter, to $865.2 million as of March 31.

Bank officials warned, however, that economic conditions within the housing market "will lead to continued contraction in the bank's residential construction portfolio" but added that "increased loan activity remains quite good in other lending areas."

City Council gives Beam more time on downtown project

The Eugene City Council agreed to give their would-be downtown re-developer more time to decide if it will buy and renovate the empty Centre Court building at Willamette Street and Broadway.

Councilors approved a request to try to extend the option to buy the building from Eugene landlords Tom Connor and Don Woolley.

The city's potential developer, Beam Development of Portland, wants to delay the purchase by three months, from July 8 to Oct. 20.

The city now has an option to buy the Centre Court and the adjacent Washburne building from Connor and Woolley for a total of $4.7 million.

Beam needs more time to line up financing and tenants before it commits to the project, councilors were told.

Century Bank reports?33 percent profit increase

Eugene's newest bank remains on a strong growth curve, despite what its CEO described as "unprecedented challenges" posed by downturns in the local and national economies.

Century Bank, founded in 2004, announced a 33 percent year-over-year increase in earnings for the fiscal quarter that ended March 31.

The bank turned a profit of $155,888 for the most recent period, compared to $117,414 for the same three months of 2007.

The bank operates out of a single office at 169 W. Sixth Ave. in Eugene, but recently expanded into the building's second floor and added 5,600 square feet of space.

Oregon economic index up a bit, but still points to a slowdown

The University of Oregon Index of Economic Indicators, which tracks eight measures of economic health, partly rebounded in February from January's sharp drop.

It rose 0.6 percent to 102.4 in February, according to the most recent figures. The index had a base rate of 100 in 1997. But it points to continued slow economic activity, "with a significant chance of tipping into an actual recession," UO economist Tim Duy said.

UO law schools expects boom in green business

University of Oregon law students see green business as the next big business trend, and they want to be ready for jobs in the emerging re-newables sector in the state and national economies, said Rob Illig, assistant professor in business law.

"The venture capital industry is rushing headlong into investments into green technologies," Illig said. "The thought is that ... there's probably some hybrid technology that we don't know about that someone is developing right now. People are rushing to find it and finance it and build it."

So the law school hired Roberta Mann, a top academic expert from Delaware on tax law associated with wind and solar power. She'll begin teaching in the fall. Already, the UO offers what may be among the first law school courses in the nation on the subject.

West Coast commercial salmon fishing restricted

West Coast salmon fishermen got devastating, but expected, when federal regulators set the most restricted fishing season in the history of the fleet, allowing almost no chinook salmon to be caught by commercial or sport boats between Oregon's Cape Falcon and the Mexican border.

The unprecedented closure will have unprecedented effects, salmon trollers said.

The value of the fishery between California and Oregon averaged $103 million per year between 1979 and 2004, with an average impact to communities of $61 million.

Arlie considering another mixed use village

Arlie & Co. hopes to replicate Crescent Village, the mixed-use development in north Eugene, with a similar project on a smaller scale in southeast Springfield.

The Eugene-based developer has bought 15 acres on the new Bob Straub Parkway in the Jasper Natron neighborhood and plans to build 45,000 square feet of retail and office space, plus 255 dwellings, including apartments, senior housing and detached single-family homes in coming years.

The project would be built in several phases over three to five years at a cost of up to $100 million, Arlie officials said.

Cottage Grove's last independent pharmacy closing

COTTAGE GROVE - McCoy's Pharmacy and Gift Shop, Cottage Grove's last independent pharmacy is closing its doors and plans to sell all of its accounts to the local Safeway pharmacy

Terri Debysingh, who owns McCoy's with her husband, David, blames a combination of factors, including strict guidelines from health maintenance organizations, some health plan requirements that policyholders purchase some drugs from mail-order pharmacies, Medicare Part D's arcane rules and requirements and competition from chains.

Versalogic buys land in Eugene technology park

In a signal that it may expand, Versalogic Corp., a low-profile Eugene technology company, has bought about 8 acres in Greenhill Technology Park in west Eugene for $1.2 million.

The company's work force has been growing and now stands at 70 employees, according to a grant application filed with Lane County.

But company founder and CEO Len Crane said he's not ready to disclose details of when or how Versalogic might expand.

Versalogic operates from several leased locations, including its headquarters at 3888 Stewart Road in Eugene. Versalogic makes embedded computers, buried inside industrial, medical/-scientific and military equipment.

Dessert maker planning new Springfield plant

SPRINGFIELD - Eugene's Turtle Mountain natural foods company is preparing a 20,000-square-foot manufacturing facility in Springfield to begin its own production of So Delicious, It's Soy Delicious and Purely Decadent products.

Up until now, a handful of ice cream manufacturers around the country have made Turtle Mountain's products under "co--production" agreements, and Dreyers Grand Ice Cream distributes its brands.

About 50 new employees will be hired to run the Springfield plant - where $5 million in specialized mixing, freezing and packaging equipment is being installed.

The company plans to maintain its current co-production relationships and to keep its corporate offices in Eugene. The new plant is expected to increase Turtle Mountain's production capacity by 30 percent to 40 percent.

Eugene City Bakery has a new owner

DeeAnn Hall, the former executive chef at King Estate Winery in Lorane, has taken over the Eugene City Bakery.

She declined to discuss the purchase price but is looking at ways to broaden its product lines and increase business. The 10-year-old bakery's specialties include artisan breads, French-style pastries, sandwiches, quiche and savory pastries.

"I do hope to expand to more of a cafe-type of a menu," Hall says. She also hopes to extend hours.

The bakery shares a building at 19th Avenue and Agate Street with Prince Puckler's Ice Cream.

Genesis Juice, bought by Toby's, is back in stores

Genesis Organic Juice has returned to the shelves of Eugene natural food stores.

Toby's Family Foods of Springfield bought Genesis in June, two months after the juice company had closed for the second time in three years.

Toby's, the maker of Toby's Tofu Pate and dressings, is producing eight of the Genesis Juice flavors using original recipes and its own no-heat pasteurization equipment.

The juices are on sale at Market of Choice stores, Capella Market, Sundance Natural Foods, The Kiva, New Frontier West, the Friendly Street Market and the University of Oregon Bookstore.

Party store planned for Willamette Street center

Joe and Nancy Haberthur, Portland area franchisees for Party City, the world's largest party supply retailer, are preparing to launch what they're calling a 13,500-square-foot "megastore" at south Eugene's Woodfield Station.

It will offer items such as birthday hats plastic tableware, chafing dishes and Sterno, not to mention Passover "Ten Plagues" finger puppets and Cinco de Mayo chili pepper garlands.

Joe Haberthur said the largest store the pair had had up until now is 10,400 square feet.

The local store would be in the rebuilt north building at Woodfield Station, between Big 5 Sporting Goods and OfficeMax. It is expected to open by May 20.

Restaurant chain plans Springfield location

SPRINGFIELD - Sonic, which calls itself America's Drive-In, is expected to open its sixth Oregon location this fall or winter on Olympic Street, about a block east of Mohawk Boulevard.

The limited liability corporation that owns the Eugene-based Abby's Legendary Pizza chain holds Oregon franchise rights for the Sonic brand, with three restaurants already in operation and two more expected to open ahead of the Springfield site, which would be located where the now-vacant Oregon's Own Dollar Store is.

The company has opened Sonic restaurants over the past year and a half in Central Point, Grants Pass and Hillsboro, and is building new outlets in Medford and Roseburg.

Lowe's applied to raze former Safeway, ShopKo buildings

Lowe's has filed demolition and building permit applications with Eugene's Planning and Development Department to raze the former Safeway and ShopKo stores at West 11th Avenue and Bailey Hill Road, and construct a $5.5 million home improvement store.

Lowe's plans call for a 138,000-square-foot store and a 31,000-square-foot garden center.

Liberty Bank planning new headquarters in Springfield

SPRINGFIELD - LibertyBank has taken steps to moving its headquarters across Interstate 5, from Eugene to Springfield.

The bank, which has been based in Eugene for 21 years, filed an application for a final site plan review with Springfield's Development Services Department in mid-March, and the city executed a development agreement just over a week later.

That paves the way for Liberty-Bank to apply for building permits for an anticipated first-phase development of 45,000 square feet at 250 International Way in the Gateway area. A second-phase building of 35,000 square feet is expected to follow.

Two new Eugene hotels on the drawing board

Over the next two years, Eugene is likely to gain two new hotels targeted at visiting professors, medical equipment vendors and other types of traveling professionals.

The proposed TownePlace Suites in the Laurel Hill Valley area of southeast Eugene and the Ledgestone Hotel in the Crescent Village area of north Eugene would cater to such "extended-stay" travelers.

Developer Richard Boyles' four-story, 99-unit TownePlace project is planned for 13/4 acres near Interstate 5 in the Laurel Hill Valley area in southeast Eugene.

The three-story, 115 room Ledgestone Hotel is planned for a 3.1 acre parcel on the east side of Suzanne Way, south of a retail building that includes Big Town Hero and other tenants. The developer is George Swift, whose privately owned Western Steel Inc., builds, owns and operates hotel and motel properties.

Arlie offers to sell land for Ridgeline trail extension

In a proposed $3 million deal, developer Arlie & Co. is negotiating to sell the city of Eugene a two-mile corridor of forestland to expand the Ridgeline Trail southeast of the city to Lane Community College.

Executives of Eugene-based Arlie said they are willing to sell the 200-acre strip to the city for $15,000 an acre - or $3 million total - under one condition: The city must use a separate $600,000 donation from Arlie to develop trails on the land.

The 200 acres, high on a ridge, is largely made up of forest and oak savannah with views of Spencer Butte and other landmarks.

Its purchase would help fulfill long-term city plans to extend the Ridgeline Trail to Lane Community College and beyond to Buford Park and Mount Pisgah, east of Interstate 5.

The sale does not depend on Arlie getting approval to develop the rest of its property, an Arlie spokeswoman said.

Coburg Road shopping center now under construction

Developer Steve Master has broken ground on his Coburg Station shopping center on a 2.5-acre parcel a block north of Oakway Center.

Coburg Station will have a total of 30,000 square feet of new retail space in three buildings. Master expects to divide the space into at least eight storefronts and as many as 14.

About 30 percent of the space at the new center already is leased, but Master says he is not at liberty to discuss the tenants. He hopes to have all of the space leased by the time the project is completed in late October.

Two of the buildings will be new, and the third will be a rebuilt version of the building that has held a Subway sandwich shop and an Oregon Liquor Control Commission retail shop in recent years.

Pair of weekly newspapers sold to journalist

JUNCTION CITY - Mike and Sandy Thoele, who took the helm of two struggling weekly newspapers nine years ago in Junction City and Veneta, have turned the righted ship over to a new owner.

They are selling the Tri-County News and West Lane News to Andrew Polin. Polin, 51, comes to Junction City from St. Louis, Mo., where for the past six years he was chief executive officer of the St. Louis Jewish Light - a 12,000-circulation weekly. He previously worked on weekly and daily papers in Arkansas and Florida and spent a year as a free-lance journalist in Israel.

Terms of the transaction were not made public.

EWEB buys into wind farm project in Washington

The Eugene Water & Electric Board commissioners agreed to buy part ownership in a proposed wind farm in Washington state.

Commissioners voted 4-0 to spend up to $3.5 million to secure a share of the Harvest Wind project near Goldendale, Wash., just north of the Columbia River. EWEB hopes to average about 6 megawatts of power from the project, with a top capacity of 20 megawatts.

EWEB's partners in the project are the Cowlitz Public Utility District in Longview, Wash., and Lakeview Light and Power in Lakeview, Wash. Turbine construction for the project is slated to begin next April, with the project ready for commercial operation in the fall of 2010. EWEB commissioners two years ago approved a 1 percent rate increase to help fund new resource projects such as Harvest Wind.

PeaceHealth buys $1.7 million pharmacy robot

SPRINGFIELD - PeaceHealth has spent $1.7 million on a pharmacy robot that will automate part of the prescribing process for its new hospital at RiverBend in Springfield, set to open in August, as well as its Hilyard Street hospital in Eugene and Cottage Grove Community Hospital.

The technology reduces the potential for human error, said Greg Ripley, pharmacy operations manager at PeaceHealth's Sacred Heart Medical Center. At best, humans are 96 percent reliable in making decisions on dispensing drugs. The pharmacy robot is 99.99 percent accurate, he said.

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Publication:	The Register-Guard (Eugene, OR)
Date:	May 1, 2008
Words:	2943
Previous Article:	BUSINESS KUDOS.
Next Article:	OPEN FOR BUSINESS.
Topics:	Real estate industry

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