|| Print ||
|Archives - January 2008|
|Tuesday, January 01, 2008|
Real estate versus working timberland: Which will timber companies, and Oregonians, choose?
By Abraham Hyatt
Oregon may have some of the most restrictive land-use laws in the nation when it comes to forestland, but Andrew Miller, president and CEO of Portland-based Stimson Lumber, is willing to make a wager: Sell a 40-acre plot from the 170,000 acres of working forestland that Stimson manages in the state, and then hire a good land-use lawyer.
It’s a challenge that has less to do with the strength of the laws governing that land and more to do with what has become perhaps the most powerful issue the timber industry is facing. According to the Department of Forestry, about 10% of the state’s private timberland sits inside urban growth boundaries or development zones. Thanks to demand from the state’s fast-growing population, the land around urban areas suddenly has more value as real estate than as forestland — sometimes three times as much.
“There is a growing economic incentive to fragment land and sell off the pieces,” Miller says. “It’s not healthy in an economic sense or for the ecology or the environment but it’s driving people [in the industry] to look for value outside of selling trees.”
Is that working forestland worth more to the public as much-cherished woodlands or as something else? And if it’s forest, who will pay to keep it that way if it’s worth more as real estate?
The Department of Forestry, industry groups and foresters are looking at different solutions, including conservation easements and tax incentives. U.S. Senators Gordon Smith and Ron Wyden and others are looking at different ways to increase the amount of timber harvested on federal lands, which would help buoy the industry as a whole.
Dale Riddle is senior vice president of legal affairs at Eugene-based Seneca Jones Timber, which manages about 166,000 acres of forestland in western Oregon. He argues the two biggest challenges are the trade relationship with Canada, which subsidizes its timber industry, and the restrictive U.S. federal timber policy.
In the 1980s timber from federal lands made up 50% to almost 60% of Oregon’s annual harvest. Since then the federal government has cut back logging following legal battles over endangered species habitat and management practices; timber from federal lands now makes up less than 10% of the state’s annual harvest. That puts most of the state’s timber production on private lands and creates a fire risk on overgrown federal lands.
Plum Creek, the nation’s largest private landholder, has run up against controversy for its use of its timberland. In Washington, Maine and Montana, Plum Creek has sold land to developers or is actively developing resorts and housing developments on 100,000-plus acre parcels of its own timberland. Most famously, the company — which did not respond to requests for an interview for this story — also filed, and then withdrew, Oregon’s largest Measure 37 claim. The claim would have given Plum Creek the ability to develop 32,000 acres of the 372,000 acres of forestland it owns in the state.
That kind of land sales or development by REITs could have an impact on the state’s smaller, privately held timber companies, especially if those big companies are harvesting timber or selling land based on stockholder demands rather than on a long-term plans. As Geisinger points out, “When you’ve got an accountant managing forests, that’s not always the best forestry.”
The value of that land is multifold: jobs, rural economies, supporting industries, habitat, biodiversity, water, carbon sequestration (the natural process of trees removing and storing carbon dioxide, which plays a major role in global warming, from the atmosphere). But to save that land, the timber industry can’t be the only advocate, Donegan says.
“It’s got to be the conservation community who identifies the value of working forests,” he says. “Conservationists need to stand up as a third party and say, ‘This is a crisis.’”
UNTIL THE PAST FEW decades, the intersection of logging and residential growth has had little impact on the timber industry. Conservation efforts from outside the industry played a minor role as well. The biggest force that shaped the industry was federal forests.
Thursday, May 21, 2015
BY JASON NORRIS | GUEST BLOGGER
Uncertainty is a part of doing business, whether in through the lens of investment opportunities and risks or the business of running an enterprise.
Tuesday, March 31, 2015
BY JACOB PALMER | DIGITAL NEWS EDITOR
inDinero, a business that manages back-office accounting for startups and smaller companies, recently announced it would relocate its headquarters from San Francisco to Portland. We talked to CEO Jessica Mah about what drew her to Portland and how she plans to disrupt the traditional CPA model.
Monday, April 13, 2015
BY GRANT KIRBY | OP-ED CONTRIBUTOR
The mega-shift from technology-driven to data-driven organizations raises questions about Oregon’s workforce preparedness.
Tuesday, May 26, 2015
BY LINDA BAKER
Spring rains are the bane of an Oregon cherry farmer’s existence. Even a few sprinkles can crack the fruit so badly it’s not worth picking. Science to the rescue: Researchers at Oregon State University have developed a spray-on film that cuts rain-related cracking in half, potentially saving a season’s crop. The coating, patented as SureSeal, is made from natural chemicals similar to those found in the skins of cherries: cellulose, palm oil-based wax and calcium.
Thursday, April 02, 2015
BY JACOB PALMER | DIGITAL NEWS EDITOR
Are mornings the most productive part of the day? We ask five successful executives how they get off to a good start.
Thursday, April 30, 2015
BY JACOB PALMER | DIGITAL NEWS EDITOR
Oregonians are scrambling to get their gardens in order for the summer. Here are three tips from landscaping and urban farming expert.
Friday, May 22, 2015
BY JACOB PALMER
Mike Morrow and Mike Delos-Reyes first came up with the idea of an ocean power device 23 years ago, when they were students at Oregon State University. They realized a long-held vision last summer, when their startup, M3 Wave, successfully launched the first ocean power device that works underwater.
|100 Best Green Workplaces in Oregon|
|The Green Paradox|
|Up in the Air|
|Queen of Resilience|
|Report says Intel, Altera deal near|
|DEQ fines Tillamook creamery|
|Pranksters discover iPhone text glitch that shuts down your phone|
|Google: We created $939M in Oregon economic activity last year|
|Information of more than 100K taxpayers breached|
|Media CEOs majority of top-10 highest paid|
|Two protesters chain themselves to Shell ship outside of Bellingham|
Tonkon Torp helps seed sustainability at Gunderson.
Oregon-based Environments helps companies create inspired workspaces. “Simply put, we help companies future-proof their workspaces,” says Chris Corrado, president. Since 1988,Environments has witnessed firsthand the changing landscape of business. Native Portlander and Environments founder Corrado says, “We help our clients navigate the complex realities of the workplace today and plan for their future in a very mindful, strategic way. We think of ourselves as their partners in the process.”
One hundred years ago, the Willamette River might easily have been mistaken for a sewer. Unchecked industrial activity and decades of pollution made it unrecognizable compared to the clean river that now flows north for 187 miles from Eugene through the center of Portland.
Sussman Shank LLP served as lead counsel for both the sale of 9 assisted living, memory care, and independent living campuses in Washington, Oregon, and California to a publicly-traded REIT, and the acquisition of 11 single-tenant net lease properties. This transaction was unique because it included both the sale of licensed senior housing facilities and a complicated 1031 tax deferred exchange transaction.
The Oregon Entrepreneurs Network (OEN) will be presenting its third annual Entrepreneurial Summit on Friday, June 5 at Castaway in Portland, Oregon.
On June 13th Mayor Charlie Hales will attend nonprofit organization Dream Change’s inaugural Love Summit and will introduce one of its keynote speakers, Dan Wieden of Wieden+Kennedy advertising agency.