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About Hermiston herald. (Hermiston, Or.) 1994-current | View Entire Issue (Nov. 4, 2015)
Hermiston A4 WEDNESDAY, NOVEMBER 4, 2015 B USINESS STAFF PHOTO BY GARY L. WEST The main event center building at the Eastern Oregon Trade and Event Center site is illuminated by the setting sun during a tour of the ground on Monday, Oct. 26. EOTEC authority discusses Byron Smith joining board By JADE McDOWELL Staff Writer The Eastern Oregon Trade and Event Center authority board discussed the implications of the city of Hermiston’s $600,000 contribution during its Fri- day meeting. The city council voted unanimously on Mon- day to kick in the $600,000 toward construction costs with the stipulation that a city adminis- trator join the EO- TEC board. During Friday’s Byron EOTEC meeting Smith chairman Ed Brook- shier said he and the other execu- tive committee members “absolutely” felt that city administrator should be Byron Smith, and that he should replace Brookshi- er on the board when his term is up at the end of December. Brookshier, who was Hermiston city manager when he ¿ rst joined the EOTEC board, said he felt con¿ dent that Smith is com- mitted to making EOTEC a success and would be a good addition to the board. Kim Puzey said while he agreed that Smith would make a great addi- tion to the board, he also wanted to express that Brookshier’s vision had been crucial to the project, as has his willingness to step up into the chair po- sition after former board chair Chet Prior died. “You certainly have my appreciation,” Puzey said. Don Miller agreed, not- ing that he was concerned about losing Brookshier’s expertise and wondered if a non-voting “ex-of¿ cio” position could be created. Brookshier assured them that no longer being a member of the board would in no way lessen his commitment to the proj- ect. He would continue to attend meetings and was available to help see issues like the water rights nego- tiations through to the end. “I am absolutely will- ing to help any way I can,” he said. During the public comment section of the meeting, former board member Dennis Doherty said he was disappointed Brookshier was going to step down and said it was worth asking the city and county more about what they wanted out of the project so that “they can take some ownership.” The meeting also in- cluded a brief update from business manager Heather Cannell and project manag- er Gary Winsand of Frew Development. Cannell said the new design for www.eotechermis- ton.com was com- plete and the web- site was once again functional. She said she was working on making arrangements for À ooring, paint, furniture, kitchen appliances, elec- trical outlets and audio-vi- sual technology for the exhibitor and event center. Winsand said the cen- ter, which is currently under construction by G2 Construction, is on schedule to be completed in March 2016. He said design work on the barns is underway and design for the rodeo arena is ex- pected to be ¿ nished in February 2016. The arena will take seven to eight months to build, Winsand said, necessitating a “very aggressive” schedule once the design is complete. Brookshier said the EOTEC board should have the additional $2.2 million it is seeking by then. The city of Hermis- ton has already given $600,000 and the EOTEC board plans to approach the Umatilla County Board of Commission- ers for the same amount. According to what board members told the city on Oct. 26, local hoteliers have offered to raise their $1 per room per night Tourism Promotion As- sessment to $2 per night and use the extra revenue to incrementally pay off a $1 million municipal bond at a rate of about $100,000 a year. “We’ve had a tremen- dous amount of help from the outside and it’s time we step up and do this right,” Brookshier said. PGG CONSIDERS SALE OF NAMESAKE GRAIN DIVISION Board to consider long-term options By GEORGE PLAVEN Staff Writer Pendleton Grain Grow- ers, the local farmers’ co-op that has been a signature brand of Eastern Oregon agriculture for 85 years, is in danger of losing its grain division amid slumping production and increased competition. Despite the announce- ment last week, General Manager Rick Jacobson in- sisted the news is “not the end of the world” for PGG. The co-op’s board of di- rectors will weigh offers to sell, lease or merge grain assets with another com- pany after a disappointing 2015 harvest. That means the McNary river terminal, Feedville piles and 19 grain elevators could soon be tak- en over by an outside ¿ rm. Jacobson said their pref- erence is to stay within the co-op model. He said a number of entities have expressed interest in a deal, but did not specify which ones. “This whole market is tough on the growers. Price is down. Yield is down,” Ja- cobson said. “Our responsi- bility is to make sure they have a good company to deliver their grain.” Board chairman Tim Hawkins said the division didn’t bring in enough wheat from growers to justify continuing service. Grain is a business that re- quires scale to stay compet- itive, he said, and without enough volume it doesn’t make economic sense for PGG to maintain those as- sets. “We had informed the growers in meetings that the future of the grain business would be evaluated based on the size of the handle this year,” Hawkins said in a statement. “PGG greatly appreciates the support of the producers that brought us their grain, but there simply were not enough of them.” PGG usually handles about 12-13 million bushels per year, but handled only 5 million bushels in 2015. Ja- cobson pointed to a number of likely factors, including a third straight summer of drought that cut wheat yields in half in some areas. Meanwhile, soft white wheat prices have fall- en to $5.69 per bushel in Portland, compared to $7 last year. With such lean margins, farmers have started hedging their bets with other grain handlers in Umatilla County, in- cluding Gavilon, owned STAFF PHOTO BY KATHY ANEY Pendleton Grain Growers’ Rew Elevator stands as a longtime landmark west of Pendleton just off Interstate 84. PGG has announced plans to divest assets of the company’s grain division. by the multi-billion dollar Marubeni Corporation. “They can be pretty price-competitive,” Jacob- son said. “Some growers had that additional option.” Umatilla County farm- ers grow the most wheat in Oregon by a wide margin. PGG was incorporated in 1930 after the stock market crash a year earlier, as local growers united to protect themselves against falling wheat prices. The co-op has suffered through dif¿ cult times in recent years. Jacobson was brought out of retirement to manage PGG following the resignation of former CEO Allen Waggoner in May 2012. Waggoner’s resig- nation came three months after the U.S. Department of Agriculture suspended PGG’s warehousing license based on discrepancies found during a routine audit of grain transactions. Since last year, PGG closed all six of their re- tail stores across Eastern Oregon as well as the au- tomotive service center in Pendleton. It also sold the agronomy À eet to Crop Production Services based in Colorado. The co-op lost $7.9 mil- lion in 2014. However, Ja- cobson remains optimistic, pointing out PGG’s total earnings at the end of June were $4 million better than last year. PGG has consolidated its debt through CoBank and secured a $20 million line of credit in June. Ja- cobson said other aspects of the business, including seed, energy and irrigation subsidiary Precision Rain, continue to do well. Selling the grain divi- sion is not a catastrophe, Jacobson said, but rather a prudent decision. “You have to look at the long term, not just the short BRIEFCASE Irrigon hosts special Veterans Day luncheon Earl “Bud” Costello, a World War II veteran from Irrigon, is the featured guest during the upcoming Irrigon Chamber of Com- merce meeting. The no-host luncheon gathering is Wednesday, Nov. 11, at noon at Stokes Landing Senior Center, 195 Opal Place, Irrigon. The cost is $8 for members and $10 for non-members. Costello recently trav- eled to Washington, D.C., with a group of 50 veter- ans as part of the Honor Flight Network of Eastern Oregon Portland chapter’s group. A nonpro¿ t orga- nization provides all-ex- penses-paid trips to the nation’s capital for World War II to visit sites like the World War II Memori- al, U.S. Capital, Arlington National Cemetery and the Tomb of the Unknown Soldier, as well as memo- rials for the Korean and Vietnam wars. Costello will show pic- tures from his trip and talk about the experience. All veterans are urged to attend. For more information, HERMISTONHERALD.COM contact Phyllis Danielson at irrigonchamber@irri- gonchamber.com or 541- 922-3857. The Hermiston Herald accepts news announce- ments about job changes and promotions, business ownership changes, reno- vations, remodels, changes in business hours, new business openings, busi- ness owner retirements and related items. Submit your business news and photos to newsroom@hermiston- herald.com. J OHN & R UTH N ICHOLS celebrate their 50th anniversary! They married October 30, 1965 in Michigan City, Indiana. Immediately after their wedding John served three tours in Vietnam, retiring from the Navy in 1987. Ruth has always worked in bookkeeping & accounting except for homemaking while the children were younger. Along the way they adopted five children (eight grandchildren) and loved them as their own. They also had a hand raising over 300 foster children through the years. Their love for each other has always been the unshakable foundation of family, work and health. We love you Mom & Dad, Cindy, Sheryl, Peggy, Shannon and Brianne FILE PHOTO The Hermiston PGG store as it looked when it was announced the store would have a close-out sale in 2014. The former store location is now home to Hermiston Auto Parts. term,” he said. “We could either be a marginal compa- ny, or merge some of these assets and be a good, strong company.” There is no timetable for a decision about the grain division. The PGG board will evaluate offers before bringing any pro- posal to a full vote of the members. Until then, PGG will continue to buy grain and operate as normal un- til a transaction is com- pleted. VOLUME 109 ɿ NUMBER 59 Gary L. West Jade McDowell Editor gwest@hermistonherald.com 541-564-4532 Reporter jmcdowell@eastoregonian.com 541-564-4536 Tammy Malgesini Sean Hart Community Editor tmalgesini@eastoregonian.com 541-564-4539 Reporter smhart@hermistonherald.com 541-564-4534 Sam Barbee Jeanne Jewett Sports Reporter sbarbee@hermistonherald.com 541-564-4542 Multi-Media Consultant jjewett@hermistonherald.com 541-564-4531 Kim La Plant Multi-media Consultant klaplant@hermistonherald.com 541-564-4530 To contact the Hermiston Herald for news, advertising or subscription information: • call 541-567-6457 • e-mail info@hermistonherald.com • stop b\ our of¿ ces at 333 E. 0ain St. • visit us online at: hermistonherald.com The Hermiston Herald (USPS 242220, ISSN 8750-4782) is published weekly at Hermiston Herald, 333 E. 0ain St., Hermiston, OR 97838, (541) 567-6457, FAX (541) 567-1764. Printed on recycled newsprint ANNUAL SUBSCRIPTION RATES Delivered by carrier and mail Wednesdays Inside Umatilla0orrow counties .......... $42.65 Outside Umatilla0orrow counties ....... $53.90 Periodical postage paid at Hermiston, OR. Postmaster, send address changes to Hermiston Herald, 333 E. 0ain St., Hermiston, OR 97838. 0ember of EO 0edia Group &opyright 2015 STUDENT OF THE WEEK Bradey Cope G RISWOLD H IGH S CHOOL Griswold High School is proud to name Bradey Cope as the student of the week. Bradey is a member of FBLA and National Honor Society. Last year he took home state awards for his NHD (National History day) project which took him all the way to Washington DC to compete at the national level. In addition, he is an all American athlete participating in cross country, basketball and track! Bradey was also a Umatilla County 4-H Ambassador last year, and he is the current ASB President. Congratulations Bradey and keep up the good work! 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