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|Articles - July 2011|
|Wednesday, June 22, 2011|
Page 1 of 8
By Ben Jacklet
Shelly Hummel has been selling homes in Bend for more than 20 years, and she’s got the attitude to match: upbeat, confident, a dog-lover who took up skiing at age 4. She labors to keep things positive, but every so often her frustration slips free: “The banks just kept giving the builders money, without even looking at plans or doing drive-bys of the places they were selling. The market just exploded with new construction. Boom! Selling stuff off of floor plans. Unfortunately, selling them to people who had no business buying them. It was a perfect storm of stupidity.”
We are touring the wreckage of that storm in Hummel’s Cadillac Escalade, driving down Brookswood Boulevard into a former pine forest that now hosts a swath of housing developments with names like Copper Canyon and Quail Pine. “This was the boundary line until 2003,” says Hummel. “These roads dead-ended. That home sold for $350,000. Now it’s on the market for $175,000. Short sale.”
Hummel never intended to become a “certified distressed property expert” specializing in selling homes for less than is owed on their mortgages. But in Bend, she didn’t have much of a choice. No city in Oregon — or arguably, the nation — experienced a more dramatic reversal of fortunes during the Great Recession than Bend, the economic engine for Central Oregon. Home values got cut in half. Unemployment soared to over 16%. A once-promising aviation sector imploded. So did an overheated market for destination resorts. Brokers, builders and speculators once flush with cash woke up underwater and flailing. Banks renowned for their no-document, easy-money loans stopped lending. Layoffs led to notices of default; foreclosure brought bankruptcy.
How does a community recover from economic meltdown? That is the central question I am trying to answer about Bend. I start my inquiry at the offices of Economic Development for Central Oregon (EDCO), an organization formed to diversify the economy after the last major recession in the region, in the 1980s. My meeting is with executive director Roger Lee, marketing manager Ruth Lindley and business development manager Eric Strobel. I turn on my digital recorder and say, “I’d like to hear your take on how the recession impacted Bend’s economy.”
Silence. I read their expressions: Not this again.
It takes some time, but over the course of the interview they paint a sharp portrait of what went wrong and why. A local housing boom “fueled by speculation, not solid economics,” in Lee’s words, crashed. The local crash coincided with a national housing slump that devastated Bend’s major traded sector of building supplies. The final blow was the collapse of the local general aviation industry. Cessna shut down its local plant in April 2009. Epic Aircraft, the other major employer at the airport, went bankrupt.
“Aviation was our diversification away from construction and wood products,” says Strobel. “We had thousands of employees out at Bend Airport. It was the largest aviation cluster in the state… It just completely fell apart in six months.”
Monday, February 23, 2015
BY JACOB PALMER | OB DIGITAL NEWS EDITOR
Power Lunch at Swagat in Hillsboro.
Thursday, January 29, 2015
BY JASON NORRIS | OB GUEST BLOGGER
Active vs. passive investing: what you need to know.
Thursday, February 26, 2015
BY KIM MOORE | OB RESEARCH EDITOR
Employment in Oregon is almost back up to prerecession levels — and employers are having to work harder to entice talented staff to join their ranks. This year’s 100 Best Companies to Work For in Oregon project showcases the kind of quality workplaces that foster happy employees.
Sunday, February 15, 2015
BY LINDA BAKER | OB EDITOR
As the investigation against the governor moves forward, those of us in the news business should reflect on our own potential for subverting the democratic process.
Friday, February 27, 2015
VIDEO: 2015 100 Best Companies to work for in Oregon
Wednesday, January 14, 2015
BY NISHANT BHAJARIA | OP-ED CONTRIBUTOR
Startups in the growth phase are associated with a fresh infusion of capital — human and financial — a curiosity factor and products to disrupt the market and drive demand. Portland’s economy gives off the same aroma.
Wednesday, January 28, 2015
BY LINDA BAKER | OB EDITOR
What is the impact of the legal pot industry on carbon emissions?
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