12A
THE DAILY ASTORIAN • TUESDAY, NOVEMBER 24, 2015
Timber:&RPSDQLHVVWUXJJOHWR¿QG\RXQJUHFUXLWV
tition.
“Where you have fewer
The potential impact on land- buyers from distinct compa-
owners — in terms of the prices nies, you have lower prices,”
they would obtain for logs — is Mendell said.
determined by the number of
The combination with Plum
Weyerhaeuser acres and mills in Creek would also give Weyer-
their vicinity, Mendell said.
haeuser the opportunity to buy
7KRVHZKR¿QGWKHPVHOYHV more sawmills, he said.
surrounded by Weyerhaeuser
As a real estate investment
forests and near its mills could trust, or REIT, the company is
be negatively affected because able to forgo federal corporate
the company will likely prior- WD[HV DV ORQJ PRVW SUR¿WV DUH
itize processing its own logs passed along to shareholders
rather than buying them on the and non-timber assets represent
open market, he said.
less than 25 percent of the value
“It really depends where of their total holdings.
the acres are relative to a given
3OXP &UHHN¶V PDQXIDFWXU
landowner,” Mendell said.
ing assets represent much less
Optimally,
landowners than 25 percent of its holdings,
SUR¿W PRVW ZKHQ WKH\¶UH QHDU VR E\ PHUJLQJ ZLWK WKDW ¿UP
several mills that compete for :H\HUKDHXVHU¶V
SURSRUWLRQ
logs, he said. If several mills of non-timber assets will fall,
are owned by the same compa- Mendell said.
ny, though, that reduces compe-
“When you bring them to-
Continued from Page 1A
gether, Weyerhaeuser has more
room,” he said.
A sawmill buying spree is
speculative at this point, as the
FRPSDQ\ZRXOG¿UVWIXOO\LQWH
grate with Plum Creek and re-
duce overlapping costs, he said.
Forestlands owned by fam-
ilies are also insulated from
some of the turmoil in the log
market because they often have
other income source and can
avoid selling when prices are
ORZ VDLG *UHJ )URKQ 3DFL¿F
Northwest regional manager
for the Forest2Market timber
LQGXVWU\FRQVXOWLQJ¿UP
As a result, the trees are
generally harvested on a lon-
ger rotation and are considered
higher quality, he said.
“Those small landowners
play an important role in the
supply chain,” Frohn said.
“You have a much larger diam-
eter tree on average.”
Competing sawmills may
also seek to build closer rela-
tionships with small landown-
ers to ensure a steady supply
of logs, Mendell said. “There
could be a business opportunity
there.”
,W¶VSRVVLEOHWKDW:H\HUKDH
user consolidating timberland
will make Weyerhaeuser the
dominant employer of loggers
in some regions, reducing com-
petition for their services, he
said.
6RPHORJJLQJ¿UPVIDYRUHG
by Weyerhaeuser may displace
others, but this “realignment”
LVQ¶WH[SHFWHGWRSXWPDQ\ORJ
gers out of work, said Frohn.
Currently, the bigger worry
IRU ORJJLQJ FRPSDQLHVLV¿QG
ing enough young recruits to re-
place retiring workers, he said.
³7KDW¶VPRUHWKHFKDOOHQJH´
Timber companies
to join forces
The pending $8 billion merger
between Weyerhaeuser and Plum
Creek will create a company with
more than 13 million acres of
timberland in 20 states.
Timber acres
0-250,000
251,001-500,000
500,001-750,000
750,001-1 million
Greater than 1 million
Sources: Weyerhaeuser;
Forisk Research Quarterly
Alan Kenaga/
Capital Press
Redo: Estimated cost ranges from $2.8 million to $3.2 million
walks will complete the proj-
ect.
:KLOH FLW\ RI¿FLDOV KDG
Utility providers include
KRSHGWRKDYHDOOZRUN¿QLVKHG 3DFL¿F 3RZHU &HQWXU\/LQN
by Memorial Day, they are now and Charter Communications.
asking the general contractor to Water and sewer are public util-
achieve “substantial comple- ities.
tion” by that time.
The estimated cost of the
May 27 is the “key paving project ranges from $2.8 mil-
date,” when all the asphalt and lion to $3.2 million. The cost of
curbs need to be laid — ahead a bond for a project so expen-
of Memorial Day — “so that sive may prohibit some smaller,
the road could be opened and local contractors from bidding
used,” McDowell said.
on the project, McDowell said.
The project is scheduled to However, the city will supply
continue for about 30 days af- local companies with infor-
terward, for the contractor to mation about the general con-
put in the rest of the sidewalks, tractors bidding on the project.
landscaping and electrical That “gives local contractors
hook-ups, he said.
the opportunity to know who to
The city will replace the ex- contact” about subcontracting
isting sewer main, water main, opportunities, he said, which is
force main and storm drainage better than waiting until the job
along North Holladay and con- is awarded and then trying to
nect existing sewer and water “get in” as a subcontractor.
service to the new water and
“The only way they can re-
sewer main. The project details ally work on the project is to get
installation of underground a subcontracting opportunity,
vaults and conduits for conver- VRWKDW¶VZK\LW¶VNH\WKH\FRQ
sion of the existing overhead tact the general contractors,”
utilities — electrical, telephone McDowell said. “Everything
and cable — to underground is public record. We just have
Katherine Lacaze/EO Media Group
utilities.
WRPDNHVXUHWKH\¶UHORRNLQJDW
New pavement and side- the public record.”
This diagram depicts new sidewalk, crosswalk and other improvements coming to a section of North Holladay Drive.
Continued from Page 1A
1605 SE Ensign Lane
Warrenton, OR
503-861-1144
LumsToyota.com
APR financing through Toyota Financial Services (TFS) with approved credit. 0% APR financing for 60 months with $16.67 per $1,000 borrowed on new: 2015 & 2016 Corolla, 2015 & 2016 Camry (Gas and Hybrid), 2015
Prius c and Liftback (Two), 2015 Avalon (Gas and Hybrid), 2015 RAV4, 2015 Venza, and 2015 Sienna, tier 1+ and 1 only. Offers cannot be combined with any other offers, with the exception of the Black Friday Bonus
Subvention Cash Offer, and may vary by region. Other restrictions may apply. Security deposit waived. Offers good in WA, OR, ID, and MT. For ID and MT state dealerships, a documentary service fee in an amount up to $350
may be added to vehicle price. For Washington state dealerships, a negotiable documentary service fee in an amount up to $150 may be added to sale price or capitalized cost. For Oregon state dealerships, a negotiable
documentary service fee in an amount up to $100 may be added to vehicle price. Oregon state dealerships not using an electronic vehicle registration system may only apply fees up to $75 to vehicle price. Does not
include taxes, license, title, processing fees, insurance, and dealer charges. Subject to availability. See your local participating Toyota dealer for details. Must take retail delivery from dealer stock by 11/30/15. • $500 Black
Friday Bonus Subvention Cash from Toyota Motor Sales (TMS), not applicable for cash back offers and must qualify for cash through Toyota Financial Services (TFS); cannot be combined with College or Military Rebates.
Offer valid on all new, unused and unlicensed 2015/2016 Camry (Gas and Hybrid), 2015 Prius Liftback (Two), 2015 Prius c, 2015/2016 Prius v, 2015 Prius Plug-in (OR and WA only), 2015/2016 Corolla and 2015 RAV4
purchased or leased through TFS out of dealer’s ground stock inventory. Does not include Fleet purchasers. While quantities last. APR contract term must not exceed 60 months, excluding 2015 Camry (Gas and Hybrid),
2015 Prius Liftback (Two) and 2015 Prius c which must not exceed 72 months. Lease contract term must not exceed 36 months. Must take retail delivery from dealer’s ground stock between 11/24/15 – 11/30/15.
© 2015 Graham Oleson