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|Articles - April 2011|
|Tuesday, March 22, 2011|
Page 5 of 8Karen Williams served as general counsel for the PDC and head of the Seattle-based law firm Lane Powell’s public-private development group before joining John Carroll’s investment firm in January 2010. The firm has pulled off more than a billion dollars worth of projects including the light rail line to the Portland International Airport, the Portland streetcar and the new Mercy Corps headquarters. In the past it has relied on complex but familiar financial tools designed to spur investment and limit risk. But those tools are no longer sufficient to make deals happen. “Projects aren’t getting done because they can’t generate enough revenue to cover the debt payments,” Williams says. That’s why she’s following the money into EB-5 investments.
In February 2011 Williams and her team submitted their first EB-5 proposal in collaboration with the Portland-based International Sustainable Development Foundation. Their plan is to set up a regional center in Oregon and to channel money from Chinese investors into a wide variety of sustainability-themed projects throughout the state, ranging from building renovations to renewable energy plants. “We’re really focusing on bringing capital into Oregon,” she says. “We think Oregon needs infusions of capital for all kinds of projects.”
In particular Williams envisions EB-5 money providing a substantial boost to rural Oregon’s woody biomass industry by providing a new source of money from investors who are willing to accept relatively small paybacks because of the green card incentive. Those investors need to put their money into job-creating projects, and unlike solar and wind projects, woody biomass is a jobs-heavy source of renewable energy, with harvesters out in the woods gathering raw material and factory workers at the plant converting wood into electricity. Economic development professionals have been trying for years to create woody biomass jobs in struggling former timber towns such as Burns and Prineville. EB-5 money could make those projects pencil out by trading jobs for green cards.
Williams says direct foreign investment could help her group complete diverse projects in portions of the state that are often overlooked. She declines to offer specific examples while the government is still considering her application, but points out that there is no shortage of rural enterprises in need of capital. “It’s a chance for us to help smaller communities to bridge the divide and get access to capital,” she says.
Joseph McCarthy, principal of the Los Angeles-based American Dream Fund, has similarly ambitious EB-5 plans for Oregon. McCarthy was born and raised in Milwaukie and still keeps a townhouse in Lake Oswego, but most of his experience in placing foreign investments has been in Los Angeles. His firm recently put together a complex deal raising $20 million in foreign investment for a 305-room hotel in Hollywood.
McCarthy says he was surprised to learn that Oregon had no EB-5 regional centers as of 2010. After studying the state’s strategic plan for growth he submitted a proposal that targets 13 different industry sectors, such as renewable energy, apparel design and tourism.
McCarthy, who lobbies for the program on a national level, learned about EB-5 when he was a policy adviser to Washington Gov. Christine Gregoire. A Seattle immigration lawyer named Henry Liebman was (and still is) channeling huge sums of foreign capital into urban real estate, and McCarthy recognized the opportunity in what Liebman was doing. “The investor is willing to accept below-market rates of return, provided you can get them a green card,” McCarthy says. He sees no problem with that: “We offer immigration privileges to foreigners for a variety of reasons… It’s not unreasonable to offer them the opportunity to invest in this country and create jobs, and to receive a green card in return.”
McCarthy expects to hear back from the government on his EB-5 proposal in Oregon this spring.
David Luo is also eager to hear back on his EB-5 proposal for Oregon. Luo is a project manager for American United Development Group, a Vancouver, BC-based company with a long history of bringing foreign investment into Canada through a similar program. But the Canadian program has slowed down since the government doubled the required investment for a green card from $400,000 Canadian to $800,000.
“The doubling of the amount required in Canada has already created a shift from Canada to the U.S.,” says Luo. “The number of people applying for the Canadian program has dropped and the number applying to the U.S. is increasing rapidly.”
Thursday, February 27, 2014
Our 100 Best Companies project turned 21 this year, so pop open the Champagne. Our latest survey gives us plenty to cheer.
Tuesday, March 11, 2014
BY MARK BLAINE | OB BLOGGER
The publisher of the Emerald Media Group moves on, leaving a cutting edge media group that depends on business acumen for its survival.
Tuesday, February 25, 2014
BY BRANDON SAWYER
The 100 Best Companies get more creative with perks and more generous with benefits; employees seek empowering relations with management and coworkers.
Tuesday, February 04, 2014
BY MARK BLAINE | OB BLOGGER
Even after years of video experimentation on the web, media companies still struggle with what it should be, how it should be done, how much we should spend on it and how much readers/users/viewers really want it.
Tuesday, January 21, 2014
BY PETER BARNES
The defense market can be easy to overlook in Oregon, a place with a bigger reputation for its antiwar movements than for its military history. Yet when it comes to the U.S. defense budget, the Department of Defense did roughly $1 billion in business in Oregon that year.
Thursday, February 27, 2014
BY ERIC FRUITS
Because they have little chance of working for someone else, today’s teens need to be entrepreneurs. But, first, we must teach our teens that entrepreneurship starts small.
Tuesday, January 21, 2014
BY LINDA BAKER
Although millions of people take anti-depressants, scientists know astonishingly little about how these therapies actually work.
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Barran Liebman is pleased to welcome Tyler Volm and Damien Munsinger as Associate Attorneys. Both Tyler and Damien represent employers and management in employment law litigation, and provide advice on a full range of employment law matters.
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Capital Pacific Bank, a Portland-based community bank serving businesses, professionals and nonprofit organizations, today announced that it has earned recognition as a Certified B Corporation by B Lab, a nonprofit organization dedicated to building a community of socially responsible businesses. The bank is one of six financial institutions across the country to achieve B Corp status.