Business Oregon RFP no. C2019272 Proposal.pdf

3.1 MINIMUM QUALIFICATIONS

3.1.1 Business Purpose/Mission

Our Mission:

To promote a thriving region through service, connectivity, and innovation.

Our Vision:

We are a regional leader and partner who provides inclusive services to meet individual and community needs. We commit to:

• Measure ourselves by staff developed agency values

• Align our daily work with our strategic priorities

• Identify and respond to service gaps in the region

• Use data and consumer input to continually improve

Our Values:

Compassion - Actively caring for others

Collaboration - Working together to achieve common goals

Diversity, Equity & Inclusion - Creating an environment where everyone is welcomed, supported, and given the resources to thrive

Integrity - Always doing the right thing

Respect - Honoring one another

3.1.2 Licensing/Registration Requirements

Oregon Cascades West Council of Governments (OCWCOG) is organized under Oregon Revised Statutes Chapter 190 as a voluntarily created intergovernmental council formed by 25 governmental entities located in whole or part within Benton, Lincoln, and Linn Counties. The Council was chartered as a Type B Area Agency on Aging in 1982. Funding for programs and administration is received from a wide variety of federal, state, and local governmental contracts and fundraising, including community groups and individual donations. Control of the Council is vested in its Board of Directors, which is comprised of one representative from the governing board of each member unit.

Administrative functions are delegated to the Council’s executive director, who reports to and is responsible to the Board. Annual audits are completed by a qualified third-party municipal auditor and filed with Oregon Secretary of State. OCWCOG’s tax identification number is 93-0584306. Its State of Oregon BIN number is 0514026-0. OCWCOG is a registered user with Oregon Buys.

3.2.1 Organization Structure (See Attachment - Organizational Chart)

3.3.1 Proposers Description

This proposal is submitted by the Oregon Cascades West Council of Governments (OCWCOG). The OCWCOG is a volunteer, member organization created by local governments and districts within Linn, Benton, and Lincoln Counties, the Confederated Tribes of Siletz Indians, and the Port of Newport. Oregon law (ORS 190.010) authorizes OCWCOG to carry out, on behalf of its members, programs serving their residents, businesses, institutions, and agencies individually or as part of a regional solution. Only the authority of the member local governments, and their willingness to delegate their authority to OCWCOG, limits the range of services of the OCWCOG.

The purpose of the Council is to be aware of and facilitate communications relating to the region’s physical and social condition, provide staff for planning and operations of programs deemed to be of regional benefit, and to offer staff resources to local governments to assist in programs or activities that are locally beneficial. Operations include a wide variety of human services, economic and community development, and transportation programs.

Key personnel, contact information, and their locations for the administration and delivery of this contact:

Ryan Vogt, Executive Director

1400 Queen Ave. SE, Suite 201

Albany, OR 97322

Phone: 541-924-8465 ext. 204

Email: rvogt@ocwcog.org

Jaclyn Disney, CED Director

1400 Queen Ave. SE, Suite 269

Albany, OR 97322

Phone: 541—574-3764 Ext. 385

Email: jdisney@ocwcog.org

Didi Aho, Loan Officer

1400 Queen Ave. SE, Suite 205

Albany, OR 97322

Phone: 541-812-1920 Ext.288

Email: daho@ocwcog.org

3.3.2 Responses to Evaluation Criteria Questions (See Section 4.9.2)

3.3.3 Proposer Information and Certification Sheet (See Attachment A)

3.3.4 Reference Check Form (See Attachment B)

3.3.5 Certified Disadvantaged Business Outreach Plan (See Attachment C)

3.3.6 Disclosure Exemption Affidavit (None)

3.3.7 Responsibility Inquiry (See Attachment E)

3.3.8 Key Persons and Resumes (See Attachment F)

4.9 EVALUATION PROCESS

4.9.2.1 Describe your firms Prior Experience in Economic Development Specific to Oregon

Role of the Oregon Cascades West Council of Governments:

Program Areas:

Community and Economic Development

The Community and Economic Development (CED) is a department within the OCWCOG organizational structure. The department supports, coordinates, and facilitates economic development initiatives for Benton, Lincoln, and Linn counties. Key economic development initiatives and programs supported by the CED are:

• Cascades West Business Lending (CWBL): This program provides small business owners access to financing and capital for start-up or expansion needs. CWBL has administered multiple revolving loan programs over the last 37 years. Since the inception of the program, CWBL has funded $82,783,809 in loans to 544 businesses.

All our lending programs are designed to assist small business startups and expansions with a focus on the creation or retention of jobs in our region through our core lending programs. Our borrowers are typically unable to obtain traditional financing and CWBL attempts to leverage private dollars through banks and credit unions by providing gap funding and lowering the risk for the private lender.

In partnership with a local lender and CCD Business Development Corporation (CCD), our

CDC servicer, we prospect and underwrite SBA 504 loans and manage the revolving loan program.

In partnership with the CCD, Mid-Willamette Valley Council of Governments, and Lane Council of Governments, we are developing a new SBA marketing and packaging tool called “Unity

Lending”.

We serve as the administrator for the City of Lincoln City’s Lincoln City Urban Renewal Agency

(LCURA) loan program and the City of Lincoln City Economic Development Toolbox Loan and

Grant Programs.

The CWBL also has an active contract with Business Oregon’s Community Lender Loan Loss

Reserve Program. The program provides financing security for defaulted loans.

The City of Albany recently contracted CWBL to administer a portion of their Community

Development Block Grant funds for home childcare workers. Three grants ($8000 - $10,000) were awarded to three small businesses, supported low/moderate jobs, and created additional childcare slots. Two of the businesses were non-English speaking.

• Cascades West Economic Development District (CWEDD): The OCWCOG staffs the

CWEDD, a U.S. Department of Commerce Economic Development designation for Benton, Lane, Lincoln, and Linn counties. The agency facilitates regional collaboration and supports region-wide economic development initiatives, Board meetings and work sessions, grant development and administration, and the 5-year Comprehensive Economic Development

Strategy (CEDS) for this District.

• Regional Transportation and Planning: The Transportation Planning and Programming team administers Federal and State programs in Benton, Lane, and Linn counties including: the

Albany Area Metropolitan Planning Organization (AAAMPO), the Corvallis Area Metropolitan

Planning Organization (CAMPO), Cascades West Transportation Options (CW Ride) and the

Cascades West Area Commission on Transportation (CWACT). The team is responsible for the

Cascades West Ride Line, a non-emergent medical transportation program for Oregon Health

Plan and Medicaid clients.

• Cascades West Innovation Hub: The Cascades West Innovation Hub is one of nine Regional

Innovation Hubs supported by the Oregon Innovation Council (Oregon InC) and Business

Oregon, Oregon’s Economic Development agency. Innovation Hubs are identified in Oregon’s

10-Year Innovation Plan (February 2021) as a strategy to strengthen Oregon’s innovation ecosystem and regional economic development, support traded-sector businesses, and incentivize collaboration among service providers. The Hub will be industry-agnostic with no specific technology, sector, or discipline as a focus. The Innovation Hub would provide transitional coordination and support for those businesses.

4.9.2.2 Describe how your firm will ensure adequate response and engagement, including fielding client requests and inquiries regarding financing options.

Many of our local lenders send us referrals, we have a lender match tool on our website as well as receive SBA Lender Match information from the CCD when the prospect is within our region. Staff is available by phone 541-812-1920, and our secure website at Loans@ocwcog.org, Zoom calls, and in person meetings. Phone calls and e-mails are responded to within 24 hours.

OCWCOG entered into a contract with the CCD to service our loan portfolio in January 2023. This strategic partnership adds an additional 40 years of experience to our lending programs and allows lending staff to spend additional time on marketing, networking, and community/banker outreach.

They also provide back-up staff to field loan inquiries if lending staff are not available.

4.9.2.3 Describe your firms process for screening potential projects for financing.

Potential small businesses are prescreened for initial fit, eligibility, and alignment with our Lending program requirements. They are asked general questions about their business, organization history and structure, financial status and background, and gap funding requirements and purpose/s. The primary purpose of the initial prescreening process is to ascertain the businesses’ ability and capacity to repay the loan. If they are determined to be eligible for one of our loan programs, businesses are asked to provide tax records, financial and bank statements, their business plan, and other relevant documents. The Lending advisory conducts a collateral property lien search. A successful initial financial and background screen will move the business forward to a formal loan application and a credit check. Unsuccessful businesses that are unable to meet business and financial eligibility thresholds are then coached on strategies to improve their financial, business solvency, and standing.

Many clients are referred to the Small Business Development Centers at Oregon’s community colleges for business classes and free advising. The lending advisor will follow-up with the applicants to see how things are going and to offer additional assistance mailto:Loans@ocwcog.org

4.9.2.4 Describe your firm’s economic development philosophy. How has your firm demonstrated a commitment to economic development in Oregon?

The Oregon Cascades West Council of Governments philosophy is consistent with the Cascades West Economic Development District (CWEDD)’s vision: The [CWEDD] District’s preferred future includes a growing diversified and resilient economy with a range of employment opportunities that provide stable family wage jobs, lifelong learning and training opportunities, sustainable natural resources, an integrated infrastructure, and coordination among economic development efforts throughout the region.

The OCWCOG Economic Development (CED) department manages several regional programs Benton, Lincoln, and Linn counties that improve livability, transportation access, and economic development. The department is broadly comprised of five program areas: Community Development & Land Use Planning, Economic Development, Small Business Lending, Transportation Planning and Programming, and Transportation Brokerage Services.

Community and Economic Development staff promote and coordinate economic development efforts across the region through relationship building, convening, research, grant services and support, project development and management, land-use planning, and technical assistance. Regional priorities are set and implemented through the Cascades West Economic Development District’s (CWEDD) 5-year Comprehensive Economic Development Strategy (CEDS). Cascades West Economic Development District is jointly staffed by OCWCOG and Lane Council of Governments (LCOG) and includes Linn, Benton, Lincoln and Lane counties.

4.9.2.5 Include list of at least three projects within the last three years that required financing similar to the OBDF lending program, and describe the size and scope of the projects duration, your role or responsibility, primary activities, and notable results of your work:

Loan #1 – The Pines Dine, Inc.

Cascades West Business Lending facilitated a financial loan package for The Pines Dine, Inc to purchase land and build a food cart complex in Lincoln City, Oregon. Total project cost of $1,258,370.

Cascades West Business Lending (CWBL) partnered with Oregon Coast Bank who facilitated a

$235,656 loan to purchase the land, Lincoln City Urban Renewal Agency loaned $150,000 toward property improvements, CWBL funded a $240,000 RLF loan toward construction, and borrower injected $632,714 cash and $67,668 equity in the land. As of February 2024, The Pines Dine employed 15 full time employees. CWBL funded an additional loan to a food cart vendor Smoked Out

Sandwiches at the location. Today, there are 11 food carts at The Pines Dine.

Loan #2 – Salty Docks LLC

Cascades West Business Lending facilitated a financial loan package with Umpqua Bank to purchase a Newport Oregon commercial building for two retail stores. Salty Docks LLC dba Galley Kitchen

Shop purchased the commercial building for her business and leased the additional storefront to

Newport Bay Candle Company. A bundled funding package was secured for the total cost of

$740,000 that included an Umpqua Bank loan for $555,000, a CWBL Revolving Fund Loan for

$111,000, and a borrower contribution of $74,000 cash. The business is 100% woman owned and

2.2 full-time employees were hired.

Loan #3 – 4 Spirits Distillery LLC

Project was a small business expansion to purchase land and construct a state-of-the-art distillery in

Corvallis, Oregon. The total project cost was $965,000. The loan package consisted of an Oregon

State Credit Union loan for $482,500, an SBA 504 loan for $386,000, and borrower equity in land of

$96,500. The business is 100% Service-Disabled Veteran owned and gives a portion of sales to organizations that support service members and their families. Cascades West Business Lending facilitated the SBA portion. As of June 2020, 4-Spirits Distillery had 11 full-time employees.

4.9.2.6 Regarding your firms approach and methodology describe:

4.9.2.6.1 How your firm’s business programs work in conjunction with other financing resources:

Cascades West Business Lending prospects are required to show proof of being turned down for traditional financing. This creates an opportunity for us to partner with banks, credit unions, and in a business purchase, the seller. The goal of our loan programs is not to compete with private lenders, but to partner with them thereby stimulating private lending. We can provide gap financing or a portion of the total project amount that lowers risk for a traditional lender. When we partner with private lenders, they take the lead role and are in a first lien position on collateral. Our goal with these partnerships is to help the borrower graduate to traditional lending in the future.

4.9.2.6.2 How your firm’s business programs are used in terms of partnerships or leveraging other public and private dollars:

As stated in 4.9.2.6.1, we strive to leverage both public and private dollars as it fulfills the spirit and intent of the loan programs.

4.9.2.6.3 What resources are made available by your organization and how your firm markets those tools. Include a short description of how you will promote Business Oregon and other

OBDD programs in your market area.

Cascades West Business Lending marketing and outreach includes a monthly newsletter that features a funded loan and success story. This newsletter is emailed to a vast distribution list of more than 230 people consisting of lenders, economic development representatives, realtors, title companies, city managers, community colleges and Small Business Development Centers, Regional

Accelerator Innovation Network, and private businesses. It is posted on the OCWCOG website and on other OCWCOG social media platforms. It is sent to three local Chambers of Commerce who redistribute via their newsletters, over 200 internal OCWCOG employees, and shared with other stakeholders outside of the organization.

Lending staff’s community and business outreach includes attending regional Chamber of Commerce events and hosting their Greeter events, staffing booths at both the annual Abany Area Chamber of

Commerce’s Business Extravaganza and Lebanon Chamber of Commerce’s Biz Expo, and attending the Economic Development Alliance of Lincoln County’s annual Economic Summit. We work closely with the Small Business Development Center’s (SBDC) housed at Linn Benton Community College and Oregon Coast Community College. Cascades West Business Lending has partnered with the

SBDC at small business resource events and webinars. Regularly present our lending programs lenders, and economic development professionals, and organizations such as the Linn Benton

Hispanic Advisory Committee. Oregon Business Development Department programs will be marketed alongside CWBL programs.