Bend’s future growth could be hindered by insufficient infrastructure
Published: May 01. 2009 4:00AM PST
The global recession will eventually turn around, but Bend’s pressing road, sewer and water needs could pose a more long-term problem if efforts to update them are not successful, economic development and city officials say.
Many systems are in need of upgrades and expansions after years of rapid growth, according to business groups, who say they’re working with city leaders to address the issue.
If an Intel Corp. or a large solar panel manufacturer were to decide it wanted to locate a manufacturing plant in Bend with its current sewer and water capacity, the city would not be able to accommodate the company, said Roger Lee, the executive director for Economic Development for Central Oregon, which promotes growth in the region.
“We are not ready,” Lee said about the potential to recruit a large utilities user like Intel or some renewable energy companies. “It has become very clear for a lot of (recruitment) projects that we have looked at in the last 12 months.”
With nearly 15 percent seasonally adjusted unemployment and a recession that has cut a broad swath across nearly all of Central Oregon’s major industries, the future development of Bend could depend on making sewer and water improvements, said Bill Robie, the governmental affairs director for the Central Oregon Association of Realtors.
Who will pay for the systems needed? Robie says it’s too early to tell.
But he believes a combination of local government and federal stimulus dollars will be necessary.
“From our perspective, these are the fundamental issues that our local government should be spending money on,” Robie said. “You can have the debate about the bus system, but there is no question if we don’t have the roads, sewer and water, we are not going to be able to grow in a sustainable fashion.”
About $500 million in improvements need to be made to the city’s roads, water and sewer systems to meet capacity for the next 20 years, said Tom Hickmann, utilities services division manager for the city.
About half that cost would be for water, wastewater and sewer improvements, which would have the most direct impact on existing business expansion and future growth, Hickmann said.
“Even if growth was at its peak, there would not be enough revenue,” Hickmann said.
Federal stimulus dollars could help — the city has applied for $12 million in grants and low-interest loans, he said.
But the biggest dent will be made through higher utility rates for both industrial and residential customers, Hickmann said.
Water rates increased 8.25 percent last fall, and the Bend City Council will decide whether to impose a 14.5 percent annual increase on sewer rates during the current budget session, Hickmann said.
Existing businesses looking to expand are facing challenges due to the city’s limited wastewater capacity.
Deschutes Brewery, which is considering expanding its brewing facilities located near the roundabout at Colorado and Simpson avenues, is restricted in that growth until either the brewery or the city can create more wastewater capacity, said Michael LaLonde, chief operating officer for the brewery.
The company could choose to build a new brewery closer to its future markets in the Midwest and Southeastern United States if wastewater issues with the city cannot be resolved, LaLonde said.
“We have to consider whether increased costs of wastewater expenditures (in Bend) make it worthwhile to do it here or in other locations,” LaLonde said.
The company is considering three options: whether to build its own wastewater treatment plant, partner with the city to build a new one, or improve the existing facility, LaLonde said.
“We are trying to work closely with the city to have a worthwhile benefit,” he said. “We can invest in some part of the infrastructure so they don’t have to and vice versa.”
Another business has seen its sewer costs increase significantly in the past 18 months.
“We are a big user of water here, and it is our obligation to make sure our water is clean as well,” said Steve Seefeldt, the general manager of Mission Linen Supply, an industrial launderer on First Street in Bend. “I realize the infrastructure isn’t really there in Bend. It’s old and antiquated. We all need to do our part financially and in other ways to help the city move forward.”
City staff will meet with a group of business leaders Monday at St. Charles Bend to kick off discussions about how to fund future utilities in Bend. The meeting is by invitation only, Robie said.
Jeff McDonald can be reached at 541-383-0323 or at jmcdonald@bendbulletin.com.
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