Memorandum of Understanding

between the

City of Portland Office of Sustainable Development

and

The Portland Development Commission

This Memorandum of Understanding (MOU), dated this ___ day of _____________, 2006 is made and entered into by and between the City of Portland Office of Sustainable Development (OSD) and the Portland Development Commission (PDC) (collectively referred to as “the Parties”).

Preamble

The purpose of this MOU is to memorialize the understanding between the Parties of their respective intentions to coordinate, strengthen and create appropriate public sector tools needed to foster sustainable business practices, promote sustainable development, and expand the sustainable industries sector of the regional economy. This agreement is indicative of the commitment of Portland’s public sector leadership to sustainability principles and to the belief that the economic and social wellbeing of the metropolitan region depends upon such principles.

Part One of this MOU focuses on activities related to economic and business development. Subsequent parts will be added by amendment and will incorporate strategies related to commercial and residential development. As with Part One of the MOU, additional amendments will strengthen the collaboration among staff of the two agencies, develop shared workplan goals, and create synergy to strengthen sustainable development in Portland and the metropolitan region. It is contemplated by the Parties that subsequent agreements will be necessary to implement the specific activities described in Part One of the MOU and any subsequent Parts added thereto by Amendment. For example, subsequent agreements may pertain to the PDC Development or Housing Departments, so that each of the operating Departments within the agency has specific activities in conjunction with OSD.

PDC and OSD shall designate a primary staff contact person or persons for named activities and for the implementation of the MOU as a whole. As part of this effort, PDC intends to create an agency-wide manager position to coordinate projects and policies related to sustainable development.

The strategies identified in this MOU assume the following goals:

➢  Increase Portland-area employment in sustainable industries

➢  Bolster revenue to Portland sustainable industries

➢  Reduce costs and improve efficiencies for businesses by implementing sustainable practices

Background

Investment in economic development is a top priority as government and industry look for new strategies to increase workforce competitiveness, invest in local communities and ensure the future economic health and prosperity of the region.

Much of the work to retain, recruit and expand business stems from existing strategies. These include the 2002 citywide Economic Development Strategy, which identified Sustainable Industries as a citywide target for economic growth, and the 2005-2006 Sustainable Industries Action Plan developed by the Portland Development Commission. This action plan defines Sustainable Industries as traded sector businesses which produce a product or service whose consumer is able to

use resources in a more environmentally-responsible and/or energy-efficient manner. The broad term “Sustainable Industries” encompasses such areas as green building products and services, energy-related products and services, environmental remediation, recycled products, and sustainable agriculture.

Current Efforts

The Office of Sustainable Development

Through policy development¹ and programs to educate and train businesses and residents, the City of Portland Office of Sustainable Development (OSD) has helped to:

1)  Increase regional market demand for sustainable technologies, products and services

2)  Create a strong local portfolio of sustainable industry expertise in architecture and engineering; building materials; clean energy; healthy, locally-grown food products and systems; recycled products; lighting; water and energy efficiency.

Since the launch of the City’s green building program, G/Rated, in 2001, OSD has worked with other City agencies, PDC, and private-sector partners to accelerate the transition to green building as standard practice in Portland. OSD’s menu of green building training, resources, and project-specific assistance has helped lay the groundwork for Portland’s national leadership in green building, with more Leadership in Energy and Environmental Design (LEED)² certified buildings than any other city. G/Rated has two fundamental objectives:

•  Expand market demand by educating building industry professionals and the public about the benefits of green building; and

•  Make green building practices easier to implement by reducing regulatory and financial barriers and developing technical services and resources for building industry professionals.

To accomplish these objectives, OSD provides project-specific technical assistance, develops technical resources, provides outreach to the development industry and the public, and provides financial assistance through the Green Investment Fund.³

Through the BlueWorks Business and Multifamily Assistance programs, OSD provides customized assistance to individual small businesses on a variety of resource conservation practices to help create efficiencies and save money.

The Portland Development Commission

The PDC Target Industry Plan efforts are undertaken to attract and retain industry, advance best practices and increase industry knowledge. The Sustainable Industries target industry plan provides a working definition of firms within the cluster, a regional market overview, and outlines steps to encourage business growth within the sector. These steps include:

1) Business retention visits: Meetings with individual businesses to determine company needs, including physical space, financial and workforce development issues.

2) Financial incentives: PDC’s financial incentives include grants and business loans to assist with permanent physical improvements.

3) Sustainable Business Assistance Program: PDC contracts with the Zero Waste Alliance to provide process improvement and development assistance. The Oregon Manufacturing Extension Partnership also provides technical assistance to increase company efficiency.

4) Industry forums: Sponsorship and organization of networking events and educational forums of interest to constituent businesses.

5) Business recruitment and area promotion: Provide recruitment assistance to companies interested in a Portland metropolitan location, share best practice resources, and promote Portland and the state of Oregon.

The Portland Development Commission provides business development tools, including financial incentives and technical assistance, and works to foster target industry development. The Office of Sustainable Development has technical expertise and large networks related to sustainable technologies, products and services. Working together, these two agencies can provide personalized assistance to businesses producing sustainable products and services and create a welcome business environment for sustainable industry growth.

Part One: Economic and Business Development

Agreement To Support and Implement Citywide

Sustainable Industry Economic Development Strategies

Statement of Purpose

In order to achieve real, measurable success in City efforts to retain, grow, and recruit sustainable industries, PDC and OSD must first establish a clear set of goals. This MOU is designed to stimulate greater collaboration and improve communication between the two agencies. Private sector partners are also included in several of the specific action items identified.

OSD and PDC programs related to sustainable industries focus on six main areas: business retention and expansion, business recruitment, education and technical assistance, promotion of the Portland metropolitan area, and research. Each area provides opportunities to focus existing efforts and to create new strategies.

Section I. Business Retention and Expansion

Business development is a core function of the PDC Economic Development Department. Current business retention and expansion activities include:

•  business retention and expansion visits

•  technical assistance resources

•  financial incentives

•  business networking and educational opportunities

A weekly report of business visits is provided to the Mayor’s Office, which provides personalized letters to each company visited. The technical assistance provided by OSD and described herein also supports a positive business climate in the city and supports business development.

Deliverables:

A. Improved Interagency Resource Guide and Coordination. In 2005, the Parties increased the level of resource sharing related to business development. This practice will continue and improve. This suggested action calls for interagency training so that staff can learn directly about each other’s programs. This training will improve staff’s ability to inform our clients of available resources. Regular meetings and resource sharing will be scheduled among PDC, OSD, and the Sustainable Development Commission’s economic development committee⁴ to review the flow of information and to compare the needs being expressed by our mutual constituencies.

An interagency resource guide will be updated on a regular basis, and will be available in printed and electronic formats.⁵ Staff at both agencies (including staff that are not engaged in business development) will be briefed regarding resources and programs that each agency provides to its business constituents. The Lunch Brown Bag events are one good forum for staff to share information.

Timeframe: A revised interagency resource guide will be completed by late 2006. Staff presentations will be scheduled at both PDC and OSD in Q3 2006 and Q1 2007.⁶ A business development and technical assistance committee comprised of staff from both organizations will meet regularly (2 to 3 times per year or as needed) to inform each other of their activities and monitor the progress of annual workplans.

B. Agency Referral Tracking System. Staff from both agencies regularly refer incoming business development inquiries to one another. An OSD Blue Works brochure, for example, is currently included in PDC business retention packets. Referrals to other city agencies and private sector partners (e.g., Small Business Development Centers, Mercy Corps) are also made. However, there is no current system in place to track the number of agency referrals. A list of companies who have received a business retention and expansion (BRE) visit and/or who have made a request to the Blue Works program will be shared between the agencies on a regular basis. The list will allow staff to review common clients and client follow-up resulting from referrals.

Timeframe: In Q3 2006, staff from both agencies will meet to review efficient and effective methods for tracking the number of referrals. Such methods may include simple phone logs, training staff to ask clients how they learned of a given program, and so on. Once systems are put in place, the results will be evaluated to determine if a tracking system should continue, or if periodic tracking is sufficient to monitor client inquiries and referrals. The same business and technical assistance interagency group described above could also serve this function.

C. Resource Conservation and Business Assistance Center (working title). The barriers to reaching small businesses with resource efficiency programs are well-known. Small businesses face numerous constraints on their time, attention, and finances, with the frequent result that activities not considered part of the core business have little chance of gaining traction. From the provider’s perspective, program costs tend to be high relative to resource savings per business, which seriously hampers program cost-effectiveness. However, small businesses comprise the vast majority of Portland’s business community. Ninety-four percent of businesses in the city employ less than fifty people. Though individually these businesses may be modest in their resource consumption and waste generation, the cumulative environmental impact of small businesses is significant. In Portland, the commercial sector accounts for roughly 25-47 percent of the electric utility load, 75% percent of the solid waste stream, and 45 percent of water consumption.⁷

The Office of Sustainable Development will take the lead in creating a partnership of service providers that have a direct interest in working with the small business sector to achieve specific resource conservation goals. The partners will include utilities, non-profits and state, city and metro agencies. The center will offer small businesses a menu of resource conservation services and incentives that are locally available to them in a customer-focused, result-oriented online resource. OSD will house the program and serve as the coordinating body, providing information resources and facilitating referrals to other agencies when appropriate. Such a program will enable city bureaus and other agencies to be more effective in serving a hard-to-reach target audience by assembling related resource conservation services under a single umbrella.

Staff at the Center will be able to directly assist and refer companies to business development and resource conservation resources, certification information for companies seeking to achieve recognized standards and OSD-provided certifications related to green building, energy efficiency, and other resource areas.

Timeframe: Planning for the proposed center is underway and will continue in Q1 and Q2 2006.

The proposed center is planned to begin operations in early 2007. OSD will take the lead in this endeavor with active support from other partner agencies and PDC.

Section II. Business Recruitment

PDC’s business recruitment program provides support and resource information to entities evaluating a location in the Portland metropolitan area. Partner organizations, including the Regional Partners for Business, the Portland Business Alliance, and individual municipal economic development organizations, also respond to inquiries concerning business climate and resources in the Portland metropolitan region. Potential coordinated actions among OSD, PDC and other partner agencies could include:

•  Recruitment appointments with site location consultants and businesses to coincide with trade show attendance

•  Trade delegation - city to city visits

Deliverables:

A. Business Education and Targeted Business Recruitment – Annual Calendar. Portland business understands the value of attracting quality jobs in target industry sectors. The Regional Business Plan and Sustainable Industries Target Industry Plan include an emphasis on quality jobs. An active plan for regional recruitment of sustainable industries would build upon existing initiatives and focus efforts.

Such a plan would include an annual trade show calendar of national and pertinent international events where leading sustainable industry, renewable energy/energy technologies, or urban development firms will be in attendance. The calendar would establish target priorities (e.g., 3-4 shows per year) and a decision making filter to assess each opportunity. Potential premier events include the US Green Building Council annual convention, renewable energy trade shows, and the Global City Forum, among many others.

The calendar will describe the typical attendees and history of the listed shows, expected outcomes in terms of business exchange, and a preliminary budget estimate of promotional opportunities. These activities will be coordinated with PDC, OSD, City Council, the Portland Ambassadors Program, the Regional Partners for Business, the Portland Business Alliance, state and regional recruitment efforts.

Timeframe: Working with SDC and the partners listed above, a timeframe and mechanism for establishing this kind of calendar will be determined by Q3 2006. Given the complexity and expense of staffing a trade show event, the calendar and accompanying budget will be discussed among the partners indicated above.

An annual calendar will be developed and adopted on a regular basis. The start of the annual city budget process may be an appropriate time to create such a calendar.

B. Annual Budget Targeting Sustainable Industry Recruitment. The city’s commitment to a leadership role in sustainable industries – and a commitment to send city representatives to a limited number of strategic events – requires a dedicated budget. The city’s participation in national and international events will involve public and private leadership and reinforcement.

Timeframe: In conjunction with the event calendar and prioritization discussed above, an annual budget will also be developed. A mechanism for annual budget discussions to take place will be established.

C. Global City Forum, Lyon, France, May 2006. The Global City Forum is an annual international event that offers a multi-layered opportunity for sustainable industry development, recruitment and promotion, in addition to providing a networking opportunity and convention concerning urban sustainable growth policy and best practices. Mayor Potter has agreed to lead a delegation to the conference, and work has begun with the Mayor’s Office, Portland Ambassadors, OSD and PDC staff to determine and organize Portland’s presence at this event. Costs related to this event will be underwritten in part by the PDC Economic Development Fund and OSD funds earmarked for best practice development and training.

Timeframe: City Hall and OSD staff began preparing for this event in Q4 05 and will continue in Q1 and Q2 2006.

D. Invite Business Leaders to Represent Portland. Portland business and academic leaders regularly attend conventions and events related to sustainable industries, nationally and internationally. Opportunities exist to work with business leaders to share Portland promotional and resource materials at these kinds of events. For example, several Portland and Oregon firms attended the national solar convention in Washington, D.C. in October 2005. These firms shared information about Portland resources with selected convention attendees.

City staff should identify conventions and events of interest, and approach private sector partners who are sponsoring or attending these events. A brief training may be given to corporate volunteers concerning Portland resources (including simple website addresses that can be easily disseminated). PDC and OSD will coordinate these activities with the Portland Ambassadors program and the Sustainable Development Commission

Timeframe: The completion of a calendar of events in late spring 2006 will result in a short list of targeted shows. Potential Portland volunteers will be identified and approached throughout the calendar year.

Section III. Technical Assistance/Education

As referenced above, a number of existing programs provide businesses with technical assistance.

Calls concerning these programs and Portland sustainability efforts are received every day, at City Hall, OSD, PDC, other city offices, the Portland Oregon Visitors Association, the Portland Business Alliance, and others. A common script will be developed so that staff throughout the city who answer general inquiries know where to refer people.

Calls from existing and start-up Portland companies include those seeking real estate information, or information related to recycling, energy efficiency, financial support (grants and loans), promotional support, technical assistance for increased energy/environmental performance, resources on tax benefits, green building design, etc. Other calls are received from companies exploring a potential Portland location. Agencies also receive a large number of calls from student researchers, foreign and domestic public officials, and professional associations seeking an opportunity to “tour Portland.”

Deliverables:

A. Business Resource Training for Other City Staff. The goal of this deliverable is to ensure that sustainable businesses locate available city resources efficiently. A simple resource guide will be developed that outlines the business development and technical assistance tools available at PDC and OSD. The guide will be provided to staff at both agencies, as well as other public agencies. This reference is not designed to replace existing technical assistance matrices but rather, will provide a quick overview for public sector staff throughout the city.

Timeframe: This resource will be developed in the third quarter of calendar year 2006 and will be updated as needed by OSD and PDC staff.

B. International and National Visitors Program. Portland receives a considerable number of inquiries and visits from government officials, company representatives and average citizens who would like to learn about how Portland operates so sustainably. There is currently no central organizing program to host such visitors. The Portland Oregon Visitors Association, World Affairs Council, Portland State University, and city staff, among others, have reviewed various program options to respond to and take advantage of the large number of visitors. For example, a series of half-day and full day agendas could be established on a fee for service basis. A feasibility analysis should be undertaken to examine the staffing, printing and other costs, as well as the anticipated income, from such a program. OSD would take the lead on this project, with support from PDC. Activities could be coordinated with the Portland Oregon Visitors Association and the World Affairs Council.

Timeframe: A feasibility and scoping exercise will be undertaken following other actions listed in this MOU, beginning at the end of calendar year 2006 or early 2007.

C. Support and Expand Existing Technical Assistance Programs. OSD and PDC both provide technical assistance resources to Portland businesses. Some of these programs include:

•  The Sustainable Business Assistance Program (PDC) – a pre-development and process assessment matching grant program

•  The Oregon Manufacturing Extension Partnership (PDC) – a process improvement and lean manufacturing assistance program

•  BlueWorks (OSD) – a business operations assessment program to integrate recycling and resource conservation

•  G-Rated Technical Assistance (OSD) – a technical assistance program to support green building projects.

•  Multifamily Assistance Program (OSD) – helping multifamily property owners and their tenants weatherize their buildings for energy savings, tenant comfort and owner profitability.

Information and application materials about these existing resources would be available at the proposed Resource Conservation and Business Assistance Center (see section IC).

Section IV. Sustainable Leadership Campaign - Promotion/Marketing

City promotional activities occur through a variety of means, including trade shows, marketing campaigns, and hosting conferences and events, among others. As a city and a region, Portland does not dedicate a significant level of resources to promote its success stories. With some limited exceptions, such as Brand Oregon, few marketing campaigns have been undertaken to competitively highlight the Portland name. A coordinated promotional effort should be undertaken to increase level of awareness and understanding of Portland and Oregon strengths.

Activities could include:

•  Recognition and events, such as the OSD BEST Awards (Businesses for a Sustainable Tomorrow)

•  VIP communications – partner development

•  Increase the number of press releases and e-mail announcements regarding successful sustainable industries

Clearly, any activities that are undertaken in this important area need to be coordinated with existing efforts. As with other actions listed in this Memorandum of Understanding, a successful approach will rely upon incumbent as well as new ideas.

Deliverables:

A. Insert Sustainable Messaging into Existing Campaigns. Identify opportunities to increase national and international levels of awareness of leading Portland companies and regional resources. As part of this effort, resource facts and figures will be provided to current promotional campaigns (including PBA, POVA, the state, Brand Oregon) so that language regarding the strength of Portland’s sustainability industries is shared and available. If appropriate, a coordinating committee will determine specific existing campaigns and opportunities to include this message.

Timeframe: Partner agencies will meet in Q2 and Q3 2006 to develop a more concrete outcome and deliverables related to this action item. The meeting will be called by OSD, with support from PDC. Further detail and an accompanying timeframe for this action item will be developed at that time.

B. Develop a Communications Plan as it relates to Sustainability in Portland. A Communications Plan defines the goals, objectives, and methodologies for brand development, promotions and outreach. Following PDC Commission and City Council support of this MOU, the scope and budget for a Communications Plan will be determined. This effort will be guided by the communications/marketing staff at OSD, with input from the Mayor’s Office, the SDC, the PDC, POVA, PBA, and selected private sector partner(s).

Timeframe: A professionally developed Communications Plan would likely require a staff selection committee, scope of work, and request for proposals. It will likely take 3-6 months to establish such a plan – again, depending upon the final scope determined.

The first initial meetings to determine this Scope will be held in mid to late 2006.

Budget: A likely budget amount for an externally produced Communications Plan would be approximately $20,000. Please note that this estimated price is for the professional services and does not include any of the printed materials that may be produced. Alternatively, a simpler Communications Plan or Strategy could also be developed relying upon internal resources.

C. Identify Co-sponsorship and Marketing Opportunities. Much as the public and private sectors collaborate regarding trade show attendance, opportunities may exist to collaborate with businesses interested in promoting themselves in trade journals and other appropriate media. Opportunities also exist for public agencies to leverage their promotional dollars for increased exposure.

Timing for co-sponsorship and marketing activities will be coordinated with the development of the City Communications Plan. The same committee referenced in IA and IB could also undertake this task.

D. Sustainable Industries and Actions: Best Practice Visits. Business and local government leaders regularly track the accomplishments of fellow metropolitan areas with respect to their efforts to support sustainable industry cluster growth and sustainable development assistance. The cities of Seattle and Austin, among others, are often cited as having leading programs. On occasion, a business and government delegation may arrange to visit another area – or host their representatives. The Portland visit to Vancouver, British Columbia in early November 2005, provides a good example.

Outcomes from such a trip could include a written summary of contacts made, programs identified, and possible business opportunities for Portland companies. Trips will occur on an occasional basis as valuable opportunities are identified (rather than on a standing annual basis).

Timeframe: PDC and OSD staff will prepare a briefing paper identifying potential visits and the resulting benefits; the draft will be shared with volunteers from the Portland Business Alliance sustainability committee, the SDC Economic Development Committee, and the Portland Ambassadors.

Section V. Public Policy

Both agencies support common public policy objectives related to sustainable business practices and economic revitalization. As public organizations, we collaborate with the City’s elected officials and provide customer service to Portland residents and businesses. This memorandum of understanding identifies specific policy areas that will engage staff and leadership from both organizations.

Deliverables:

A. Coordination with the Portland Business Alliance. PDC and OSD will coordinate pertinent activities with the Portland Business Alliance (PBA). In September 2005, PBA reported that its members wanted to establish increased collaboration with city officials in the formation of policies related to sustainability.

PDC staff will also inform other business organizations with an interest in sustainable development policy of this MOU, such as the Portland Regional Partners for Business.

Timeframe: A meeting with PBA staff regarding this MOU and resources available to their members took place on December 7, 2005. Presentations to PBA members will take place throughout 2006 and 2007 as requested, so that area firms will gain a better understanding of public resources to foster increased sustainable development. Please also see the following sections regarding Business Recruitment and Promotions/Marketing for a description of other actions that will be coordinated with PBA.

B. Coordination with the Sustainable Development Commission. PDC and OSD are regularly engaged in policy discussions with the Sustainable Development Commission to uncover new opportunities and ideas. OSD staff already supply staff leadership and resources to the SDC. Following this MOU, each agency will provide staff and information resources to support the activities of the SDC’s Economic Development Subcommittee. This will include sharing resource information with SDC members and attending subcommittee meetings. Members of the Economic Development Committee will learn about public resources available to support business development.

Timeframe: Both agencies will support and collaborate with the Economic Development Committee throughout its tenure (current members will serve through 2007). The committee’s work plan will be determined in Q1 and Q2 2006.

C. Bureau Innovation Project and City of Portland Public Purchasing. OSD and PDC will work with the Bureau of General Services, Multnomah County and other city agencies to identify opportunities to increase purchasing decisions that support local, sustainable companies. The procurement of office supplies, paper products, and food services are examples, among others.

Much work has already been completed and future undertakings will build upon these resources. The Bureau Innovation Project, for example, has focused some resources on this important topic. The Bureau of General Services (BGS) and the Office of Sustainable Development will be lead contacts.

Timeframe: This activity will commence in Q2 of calendar year 2007. The lead agencies will meet to specify work plan activities to promote this objective. Further detail may also be incorporated in future amendments to this MOU.

D. Green Building and Sustainable Energy Policy. In 2005, important city policy decisions were approved related to Green Building and Sustainable Energy. The City of Portland and the Portland Development Commission both acted to elevate the standards in their existing Green Building policies. OSD committed to securing renewable sources for all electricity consumed by the city, including all city operations and facilities, by the year 2010 and are expected to be online in 2007.

Future policy directives will be decided upon by our public leaders, partner companies, agency staff, and the Sustainable Development Commission, among others.

E. Opportunities for Further Regulatory Reform. PDC and OSD will investigate regulatory reforms to reduce the cost of doing business in Portland, specific to sustainable industries. In 2005, the City of Portland and PDC adopted higher certification standards for construction and renovation projects receiving public support. OSD and the Bureau of Development Services (BDS) identified steps that could be taken to facilitate city permitting related to green building development.

Timeframe: Initial discussions among staff from OSD, BDS, PDC, the Bureau of Planning, and Metro, among others, will be scheduled in late 2006 and early 2007 to determine areas for further regulatory review and a timeframe for future activity.

Section VI. Research

Over the past several years, the potential of the sustainable industries sector has been analyzed by both public and private organizations. For example, OSD and PDC have created and updated policies specific to the green building industry that have demonstrated a great deal of commercial interest. Many current efforts statewide have focused on the formation of target industry clusters. However, much still needs to be done to develop and coordinate strategies for a strong sustainable industries sector and sustainable business practices.

Deliverables:

A. Reference Bibliography. PDC will create a bibliography of existing Portland and Oregon studies concerning sustainable industries and a compendium of current city and state target industry strategies with respect to sustainable industries. This compendium will include a summary of the recommendations provided in each report. OSD staff will review a draft and contribute research information.

Timeframe: An initial bibliography will be completed in late calendar year 2006. A final bibliography and report summary will be completed in early calendar year 2007.

B. Sustainable Industries Maps and Directory. OSD and PDC will produce a short series of graphic representations and accompanying industry directories of sustainable industries in the metro region. The graphic representations will visually represent the number and respective sizes of regional companies that have implemented sustainable practices and/or that provide related products and services.

The directory will provide company name, its products or services, and a summary of the primary sustainable technology or practice each company employs. Separate directories for each area (e.g., green building, energy industries, and recycled products) as well as a single comprehensive directory may be established. The directories and visual maps will also be valuable in educating visitors to Portland and in other promotional materials (see Deliverables 4B and 5B).

OSD will take the lead on this task, with research support from PDC.

Timeframe: A project committee will meet in Q3 of calendar year 2006 to clarify time line and work products. The first graphics will be produced in the first half of 2007.

C. Green Building Cost and Opportunities Study. PDC and OSD will conduct a Green Building Cost and Opportunities Study of existing Portland buildings (LEED and energy-efficient buildings) to determine possible business opportunities in gap areas. The study will have two primary objectives: to provide detailed cost estimates associated with specific LEED variables among similar building types of recent construction (post-2000); to produce a sourcing list for materials and services procured. The sourcing list will be used to identify gaps in products and services available in the metropolitan region, and to establish possible corresponding business opportunities.

Timeframe: Preliminary project scoping has already taken place with the expectation that this work will take place in 2006. Staff plan to establish a Project Coordinating Committee comprised of private sector partners, including funding partners. The committee will meet 2-3 times as necessary to agree upon the scope of work and selected buildings.

Budget: PDC has reserved $10,000 to contribute to this study in fiscal year 05-06. While total project costs need to be determined, approximately $50,000 -$60,000 may be anticipated, depending upon the final number of buildings included in the study. Private sector funding will also be sought to support this endeavor.

D. Future Industry Opportunity Stud(ies). Following the completion of the Green Building study, PDC, OSD and the Sustainable Development Commission will review other industry clusters and determine if future opportunity studies may lead to increased economic activity. Likely sectors that could benefit from such a review may include clean energy, ecosystem services, recycling process and recycled content materials.

Timeframe: The Sustainable Development Commission and staff will review and determine the need and resources for future studies. This will occur on an ongoing basis.

Current examples of market evaluation/opportunity studies:

•  Hydrogen re-use: In 2005, a large manufacturing company expressed interest in determining if hydrogen produced at their facility could be captured and re-used by other area firms. PDC provided financial assistance for a feasibility analysis.

•  Biodiesel Market Analysis: PDC began working with a biodiesel company in fall 2005 to determine if and what additional market research could be conducted as a resource for their growing company. Working with a private sector partner, this research was undertaken in the early part of 2006.

IN WITNESS WHEREOF, the Portland Development Commission and the City of Portland, through the Office of Sustainable Development has executed this MOU as of the date first written above.