Image provided by: University of Oregon Libraries; Eugene, OR
About Northwest labor press. (Portland , Ore.) 1987-current | View Entire Issue (May 21, 2010)
May 21,2010:NWLP 5/18/10 10:16 AM Page 11 Two proposed construction projects in Oregon shelved Two large private construction proj- ects supported by building trades unions have been shelved. Earlier this month, NorthernStar Natural Gas Inc., halted development of a $650 million liquefied natural gas fa- cility at Bradwood Landing near Asto- ria and filed for Chapter 7 bankruptcy. Last week, the Portland Develop- ment Commission (PDC) voted to re- new its office lease in Old Town, scut- tling a proposal by TMT Development Co. to move to the yet-to-be-built Park Avenue West Tower downtown. NorthernStar’s proposal to turn an abandoned lumber mill on the Colum- bia River into a natural gas plant would have created 450 construction jobs over three years. It would have been union- built under a project labor agreement with the Columbia Pacific Building and Construction Trades Council. “There's a lot of spin about why NorthernStar bowed out of the Brad- wood Landing project, but one thing is clear: Foot-dragging on the part of state regulators didn’t help,” said Tom Ivan- cie, executive director of Energy Action Northwest, a labor-management coali- tion promoting reliable energy. “Their cunning game of ‘bring me a rock, no a different rock,’ played for six long years, finally wore down Bradwood’s investors.” Initial development work on Brad- wood Landing began nearly six years ago. Since that time, the company has spent nearly $100 million. “While we’re disappointed, we are truly grateful for the tremendous sup- port the project received from citizens in Clatsop County and Oregon’s busi- ness and labor communities,” said NorthernStar President Paul Soanes. “Bradwood Landing is a great example of a project that business and labor came together to support.” Tom Chamberlain, president of the Oregon AFL-CIO, said the decision to suspend the project will hurt all Orego- nians. “From the start this was a project mired in conflict and rhetoric, and it’s disappointing that the opponents took such a short-sighted view, and refused to consider the benefits this project would bring to Oregon, including pro- viding an efficient bridge fuel, creating much-needed jobs, and increasing com- petition to drive down natural gas prices for Oregon’s consumers,” Chamberlain said. Had PDC, Portland’s urban renewal agency, voted to relocate, it would have kick-started construction on the 33- story Park Avenue West Tower. TMT halted work a year ago after the Great Recession dried up construction loans. The stoppage pushed hundreds of union construction workers onto the unem- ployment line and left a large hole in the ground in the heart of downtown. TMT needed PDC to commit to a long-term lease for three floors in order to qualify for a construction loan. At a PDC meeting May12, TMT President Vanessa Sturgeon (grand- daughter of owner Tom Moyer) said their project would put about 300 con- struction workers back to work by June 30. Richard Sells, superintendent for Hoffman Construction, told commis- sioners that resurrecting Park Avenue West might even encourage other proj- ects to move foreward. “If this project goes, I would venture to say that other projects would have the courage to go also,” he said. PDC Executive Director Bruce Warner said problems with the Park Av- enue West Tower location arose when TMT wouldn’t reveal who was secur- ing its construction loan and was un- willing to put in writing a start-date for construction once PDC signed a lease. Additional questions were raised as to whether or not two other tenants — Portland law firm Stoel Rives and Nike- town — had actually committed to long-term leases at the building. In a press release, Warner said Old Town won out because the space didn’t have to be financed and constructed and there were no worries about unantici- pated costs and who would pay for them. “This was a very difficult deci- sion,” he said. “I feel we got a very good deal for Portland’s taxpayers.” The final vote to renew the Old Town lease was 3-1. John Mohlis, a PDC commissioner who is head of the Columbia Pacific Building and Construction Trades Council, had to recuse himself from the debate after PDC attorneys determined he had a conflict of interest. ...Private casino has union support IBEW well connected An open house May 15 commemorating the commission of IBEW Local 48’s solar array attracted several dignitaries to the union hall in Northeast Portland, including U. S. Sen. Ron Wyden (above). The 360 solar arrays were installed by members of Local 48 and used as a training project. Oregon Iron Works fabricated the steel beams, and apprentices from Iron Workers Local 29 set them in place. Campbell Crane and Star Rentals donated equipment. “I guarantee, you won’t find a better built array ... anywhere,” said Local 48 Business Manager Clif Davis. The 78-kilowatt array will provide 40 percent of the building’s electrical usage for the next 30 years and will be a teaching exhibit for individuals and businesses interest in installing clean energy products. Joining Wyden at the dedication were Congressman David Wu, former Gov. John Kitzhaber, and many other politicians. Davis said the NECA-IBEW Electrical Training Center has trained over 1,000 apprentices and journeymen in solar technology. Construction of the solar array cost $630,387. The local received $378,639 from Veber Solar 1, and will receive $142,300 from the Oregon Energy Trust. The lifespan of the solar array is 30 years. Upon paying off the project in six years, it will pay for 40 percent of the facility’s power bill for the next 24 years. The project added approximately $900,000 to the value of the union hall. MAY 21, 2010 (From Page 1) initiative authorizes 25 percent of ad- justed gross gaming revenues — esti- mated at more than $186 million a year — be dedicated to K-12 education and other public services. Studer told the Labor Press that by statute, half of the 25 percent would go to schools and 30 percent would be shared by every county in the state, with allotment based on population. The Oregon Lottery Commission would regulate all distributions. Oregon requires 110,358 valid sig- natures for a constitutional amendment and 82,769 valid signatures for a change in state law. The initiatives must be turned in by July 2 in order to appear on the Nov. 2 ballot. With its endorsement, affiliates of the Building Trades Council pledged to help collect signatures. The Good for Oregon Committee has contracted with Democracy Re- sources of Portland for signature gath- ering. About 100 people, some of them laid-off construction workers, have been hired to collect signatures through- out the state. “Our biggest hurdle is getting the signatures in time,” Studer said. “The more hands we have on deck, the better off we’ll be.” This is Rossman’s and Studer’s third attempt at building the entertainment complex. They first showcased the proj- ect — a “world-class entertainment center” that would, in phases, include a NORTHWEST LABOR PRESS luxury hotel, fine restaurants, a spa, shopping, a movie cinema, live theater venues for local, national and interna- tional stars, a bowling alley, and water park — at a press conference at the Kennel Club in April 2006 with public officials and union leaders. But their initiatives to allow for con- struction never got to the signature- gathering phase due to delays getting ballot titles approved by the secretary of state, then by a challenge before the Oregon Supreme Court. The ballot titles were certified and cleared by the courts, but in 2008 they couldn’t find enough backers to run a signature-gathering campaign. This month they came forward with two initiatives and a half-dozen finan- cial backers who are ready to move the project forward. “This partnership group is commit- ted to the building and operating of the Resort Casino and Entertainment Cen- ter the Oregon way — constructed by union craftspeople using local suppli- ers, and incorporating state-of-the-art green building techniques,” Rossman said. John Mohlis, executive secretary- treasurer of the Columbia Pacific Build- ing and Construction Trades Council, said the announcement couldn’t come at a better time. “Job creation is one of the most important issues facing Ore- gon right now,” he said. “We have any- where from 25 to 50 percent unemploy- ment in the trades and no real big projects on the horizon.” The project is expected to create hundreds of direct construction jobs, generating a $286 million annual pay- roll. The facility itself is expected to provide 3,000 permanent jobs, and an additional 2,300 indirect jobs. “These will all be local, family-wage jobs,” Mohlis said. If successful at the polls, construc- tion most likely wouldn’t begin until the third or fourth quarter of 2011. The partnership group behind the casino and entertainment center are: • Oregon Gaming & Entertainment Co., principals Studer & Rossman: an Oregon-based investment company; • MGP Racing LLC, principal Arthur McFadden: owner of Mult- nomah Greyhound Park; • Navegante Group: A Las Vegas- based hospitality company specializing in casino development, consulting and management; • Clairvest: A Canada-based investor in North American gaming-develop- ment companies; and, • Innovation Capital: A Los Angeles- based gaming, leisure and hospitality investment banking firm. Studer emphasized that the partner- ship group is not requesting “a dime of taxpayer subsidy or special treatment” to build and operate the facility, and it will pay its full share of taxes — in ad- dition to the 25 percent for schools and other services. PAGE 11
