Progress Report on the City’s Economic Development Strategy: Small Business & Neighborhood Vitality November 12, 2009 www.pdxeconomicdevelopment.com

Outline Overview of Strategy Progress Report on Goals: Small Business Focus Progress Report on Goals: Goal 1: Maximize Competitiveness Goal 2: Urban Innovation Goal 3: Neighborhood Business Vitality Presentation November 12th

The Approach

Portland is a Small Business Town 94% of business have < 50 employees 87% of businesses < 20 employees Note: Firms with zero employees are sole proprietorships

PDC is a Small Business Agency Services for our customers Small Business Finance Technical Assistance Workforce Equity Revitalization

Target Industry Clusters Organization PDC Commission Other PDC departments include: Central Services Executive Executive Director Urban Development Dept. (NEW) Central City Team Business and Industry Neighborhoods North/NE (Interstate/MLK East/SE (Lents/ Gateway) Target Industry Clusters Business Finance Westside URAs Close-in Eastside URAs Comm. Eco Dev. International Industrial North Mc/ South Wat. 6 6

GOAL 1: Maximize Competitiveness % of firms with 20 employees or less Target Industries are Predominantly Small Businesses Portland Profile Target Industry Avg. # of Employees % of firms with 20 employees or less Advanced Manufacturing 58 66% Clean Tech/Sust Industries 21 77% Software 10 90% Activewear 18 92%

GOAL 2: Drive Urban Innovation Connecting Small Businesses & Local Workforce with Opportunities Providing working Capital for Small Contractors Connecting local contractors to Clean Energy Works Investing $200,000 in Green Features grants to 8 small businesses M/W/ESB contracts exceeded $74 million in last two years, 35.2% of all PDC contracting dollars Set stage for additional $42 million of private investment in M/W/ESB contracts in South Waterfront Of construction hours on PDC projects: 24% by women and minorities 23% by state registered apprentices Cue video Leveraged $350,000 in private investment. (goal is 20%)

GOAL 3:Neighborhood Business Vitality Implementation Update 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3.1. Small Bus. Technical Assistance & Entrepreneurial Education 3.2 Small Business Portal and Hotline 3.3 Green Main Streets Activewear Study - Local activewear CEOs are convening in October to kick off a study of the activewear industry. The study will produce an industry directory and genealogy map, and is expected to lead to additional industry collaboration. Materials Lab is a collaborative, industry-led effort to establish a library to share innovative materials for industries ranging from apparel to industrial design to architecture. An advisory committee has been established and a business plan is being developed for the Lab. ReVolt Technology selected Portland as the home for its U.S. headquarters, with up 250 jobs projected for the region. eTek awarded $100 million to study electric vehicle usage. Nissan will partner with eTek to test 1,000 electric cars and 2,500 charging stations in the Portland area. Three Oregon battery manufacturers received $340 million in stimulus to develop new battery technology. Portland and Oregon continue to generate strong interest for EV manufacturing operations. Iberdrola Renewables awarded over $550 million in stimulus grants to invest in wind farms throughout the the U.S., including $94 million in Oregon. Horizon Wind Energy received $47.7 million to develop a wind farm in Oregon. PDC is working with local wind companies and manufacturers to develop a supply chain map to identify opportunities for local produced components.

GOAL 3: Neighborhood Business Vitality Quarterly Report Achievements to Date Small Bus. Technical Assistance & Entrepreneurial Education Commercial District Revitalization Alignment of Services & the Small Business Portal Small Business Law Clinic: 331 businesses; 771 matters; 77% of businesses MW or recent immigrants Chambers of Commerce: African American Chamber of Commerce of Oregon*: 446 businesses; 1117 phone consultations Hispanic Metropolitan Chamber of Commerce**: 445 businesses; 445 ESB, 66% WBE, 25% M Micro Enterprise Investments: $900,000 across 7 providers (including OAME, MercyCorps, PSU) *over a 10-month period **over a 15-month period Portland Main Streets/Nationally recognized program launched and applications will be available in January 2010. Commercial streetscapes underway: Russell Street (Lower - Albina) 102nd Avenue (Gateway) Denver Avenue (Kenton) Foster/Woodstock (Lents) N/NE Economic Dev. Initiative Launched MAX Green Line Station Area Planning underway Hotline launched 865-4BIZ 1-Stop Website driving alignment between providers Economic Opportunity Initiative joins PDC Community Investments Storefront Grants: 84 grants – aprx. $1M invested Dev Opp. Grants: 144/$1.4M Loans/Grants to Businesses: 11 investments/$1.1M Community Livability Grants: grants awarded to 6 nonprofits in Interstate Corridor URA - $350,000 Hotline launched 865-4BIZ 1-Stop Website driving alignment between providers: Small Business Development Center Alliance for Portland Neighborhood Businesses Associations City Economic Opp. Initiative

GOAL 3: Neighborhood Business Vitality Community Economic Development: Helping Small Businesses and Boosting Neighborhoods What the Future brings… Within 1 year 2 - 5 years Up to four neighborhoods selected for national recognized Portland Main Street program Small Business Hotline and Web Portal in operation Comprehensive community economic development strategy adopted N/NE Economic Initiative and decision on expansion of the Interstate URA to bring more wealth-creation opportunities to N/NE Up to 6 additional neighborhoods incorporated into Portland Main Street program Localized Neighborhood Investment Lents “Green” Urban Plaza in Gateway 92nd/Harold Vanport Phase III Downtown Kenton redeveloped Created seed fund, new financial tools and a better environment for start-ups and entrepreneurs

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