Economic Impact
Analysis
REPORT
June 2021
Washington
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Oregon
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Lake Oswego, OR 97035
503.841.6543
Colorado
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Boulder, CO 80302
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www.fcsgroup.com
Port of Morrow
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TABLE OF CONTENTS
Section I. Executive Summary ...................................................................................................................... 1
Section I. Introduction ................................................................................................................................... 3
I.A. Role of Port within the Region and State .......................................................................................................... 3
I.A.1. Port’s Infrastructure Assets ......................................................................................................................... 4
I.A.2. Port’s Competitive advantages for Attracting Economic Development .......................................................... 6
I.B. Port’s Contribution to Oregon .......................................................................................................................... 6
Section II. Regional Overview ........................................................................................................................ 7
II.A. Local Population and Income Levels ................................................................................................................ 7
II.B. Employment .................................................................................................................................................... 8
II.B.1. Unemployment Rate ............................................................................................................................... 8
II.B.2. Morrow County Economic Drivers ........................................................................................................... 9
II.B.3. Port-Related Business Activity .............................................................................................................. 10
II.C. Major Investments at the Port of Morrow ........................................................................................................ 11
Section III. Economic Impact Methodology ............................................................................................... 13
Section IV. Economic Impacts ................................................................................................................... 16
IV.A. Permanent Annual Economic Impacts ............................................................................................................ 16
IV.B. temporary contruction impacts ....................................................................................................................... 17
IV.C. Community Development Benefits ................................................................................................................. 18
Section V. Fiscal Impacts ............................................................................................................................. 20
V.A. Revenue from Property and Income Taxes .................................................................................................... 20
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Section I. EXECUTIVE SUMMARY
This report provides an analysis of the economic and fiscal impacts generated by the Port of Morrow
(Port), along with the private businesses that depend upon the port for its land, buildings, facilities
and infrastructure. Overall findings include:
l The Port of Morrow (Port) is the second largest Port (behind the Port of Portland), and is
likely the largest single owner of vacant industrial land within the State of Oregon.
l The Port of Morrow contributes to the economic competitiveness of Oregon and the United
States, by serving as the main point for freight distribution, export and value-added
production of agricultural products (grains, root vegetables, cattle, and milk/dairy products)
that are primarily grown in Oregon, Washington, Idaho, Montana and Wyoming.
l Over the past several years, the Port of Morrow succeeded in diversifying the local/regional
economy by accommodating state-of-the-art clean energy production facilities as well as high
technology data centers. Economic sectors served by the Port of Morrow now include
agriculture, food processing, livestock, transportation, warehousing and freight distribution,
information, advanced communications, energy, waste management, and recreation.
l Land and capital infrastructure investments by the Port of Morrow have leveraged billions of
private investment, which in-turn has created thousands of jobs and funding used to help pay
for new community recreation, workforce training and early childhood education facilities.
The permanent annual economic impact of the Port of Morrow and Port-related businesses
includes the following:
l Total “permanent” employment of over 6,700 jobs
l Annual economic output of $2.5+ billion
l Annual gross domestic product (GDP) of over $900 million
l Over $400 million in labor income
l Local/state tax revenue/payments of over $104 million (includes in lieu payments)
l Federal tax revenue/payments of nearly $88 million
In comparison to the prior economic impact analyses conducted for the Port of Morrow, it is
apparent the economic impact of the Port of Morrow continues to be significant. Comparative
findings between 2017 and 2020 indicate the following:
l The share of direct employment that is considered to be Port-related accounts for nearly half
of all jobs in Morrow.
l While business payrolls at Port-related businesses have declined slightly between 2017 and
2020 (according to Oregon Employment Department), public and private construction
activity has been increasing measurably. The resulting net impact on the local and regional
economy has been very positive.
l Currently, over half of the top 20 taxpayers in Morrow County are Port-related. According to
Morrow County Assessor records, Port-related businesses added over $3 billion in private
investment between 2016 and 2020.
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l The increase in private investment by Port-related businesses since 2016 has resulted in $214
million in additional assessed value for county tax rolls. Annual property tax contributions
by Port-related businesses are up $5 million from 2016, and now generate over $21 million
annually for Morrow County and now governments/special districts.
l In addition to supporting private investment, the Port is making $211 million in public
infrastructure investments by leveraging state and federal grants.
In addition to supporting construction businesses, the indirect and induced (secondary) benefits
of the direct port-related business and construction spending generates approximately $540
million in average annual sales within Morrow County. This supports job creation in sectors
such as: wholesale trade, health care, truck transportation, retail, restaurants, child care, real
estate, and architectural/engineering design companies.
The Columbia River Enterprise Zone II (CREZ) provides locational incentives to businesses that
meet minimum hiring (and wage) targets. Over the past few years, CREZ has provided several
million dollars in annual distribution for a wide variety of community benefits including:
l Housing
l Education
l Public Safety
l Local Enhancements
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Section I. INTRODUCTION
This report provides an analysis of the economic and fiscal impacts generated by the Port of Morrow
(Port), along with the private businesses that depend upon the port for its land, buildings, facilities
and infrastructure. Report findings focus on Port-related business activity as measured by annual
spending, value added (gross domestic product), employment, income, and tax revenues. In addition
to quantifying the economic impacts of the Port of Morrow, other community-wide benefits
attributed to the Port are discussed.
I.A. ROLE OF PORT WITHIN THE REGION AND STATE
The Port of Morrow was established in 1959 as a municipal district within the State of Oregon. The
Port began acquiring industrial and harbor land in the early 1960s and the first tenants arrived at
the Port in the late 1960s. In the 1980s, construction of a new Interstate 84 (I-84) Port
interchange in Boardman alleviated heavy traffic volumes and provided easy access to the
Boardman Industrial Park5. The Port is strategically located in Northeast Oregon at the confluence
of primary trucking routes (I-84 and U.S. 395) and is served by two mainline railroads (Union Pacific
Railroad and Burlington Northern Santa Fe Railroad), the Columbia River (barge transport), and a
Port-owned airport near Boardman. (Location map provided as Exhibit 1).
The Port contributes to the economic competitiveness of Oregon and the United States by serving as
the main point for distribution, export and value-added production of agricultural products (forest
products, grains, root vegetables, cattle, and milk/dairy products) that are primarily grown in Oregon,
Washington, Idaho, Montana, and Wyoming. The Port includes a diverse mix of tenants and
industries, including power plants, food processing facilities, agricultural industries, data centers,
shipping companies, warehouse facilities, educational and tourism facilities, and energy businesses.
Exhibit 1: Location Map
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The 12,000 mile Columbia-Snake River System (CSR) provides direct links between the Port of
Morrow and the Port of Portland and Port of Vancouver for global access. This waterway system is a
gateway for nearly 40% of the U.S. wheat exports, 70% of the U.S. barley exports, and most of the
West Coast’s forest/paper products and bulk material product exports.
I.A.1. Port’s Infrastructure Assets
The Port of Morrow is likely the largest owner of vacant industrial land in Oregon. The Port owns
roughly 8,200 acres of land, much of which is undeveloped or underdeveloped. Most of Port-owned
land is zoned for industrial development. Port properties are classified in four major facility
locations: Airport Industrial Park, Boardman Industrial Park, East Beach Industrial Park, and the
South Morrow Industrial Park. Unique features of each of these areas are listed below.
Airport Industrial Park
l 2,700 acre airport industrial area located approximately 4-miles from the City of Boardman.
l This airport is primarily utilized by corporate businesses, such as Portland General Electric
and Lamb Weston.
l The Port owns four vacant industrial-zoned properties north of I-84, totaling roughly 1,200
acres.
l The Port finalized an agreement to lease roughly 800 acres of the Airport Industrial Park
for solar energy development and is in the process of building a new deep water well.
l One of the top future infrastructure projects identified by the Port is building out the
utilities at the Airport Industrial Park to attract and capture development opportunities
Boardman Industrial Park
l Comprises 1,700 acres of industrial area located near the City of Boardman along Interstate
84 (I-84). The port owns roughly 1,000 acres at the park.
l Union Pacific Railroad (UPRR) mainline passes along the northern border of the park, which
is served by the 12,000 linear foot spur.
l Port recycles food processing wastewater to irrigate Port-owned land for farm use.
l Port provides adequate transportation, water, sewer and recreational facilities.
l Port provides piped steam (energy recovery system) from co-gen power production facility.
l Sustainable Agriculture and Energy (SAGE) Center (opened in 2013) provides meeting,
conference, communication and education/training facilities for local businesses and
residents.
l Blue Mountain Community College Workforce Training Center (opened in 2017)
l Neal Early Childhood Education Center (opened in 2017)
l Boardman Aquatic and Recreation Center (opened in 2017)
l Tenants include food processing and distribution export facilities, as well as energy
development, waste management, and information processing.
East Beach Industrial Park
l The UPRR mainline includes approximately 8 miles of rail that separates the Boardman
Industrial Park from the East Beach Industrial Park.
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l The park comprises 2,000 acre industrial area located near the City of Boardman on north
side of I-84. The Port owns roughly 1,800 acres of land at this park.
l Columbia River barge access with two existing marine terminals.
l Port recycles food processing wastewater to irrigate Port-owned land for farm use.
l Port provides adequate transportation, water, sewer and recreational facilities.
l Tenants are primarily agricultural-related with global food processing and distribution export
facilities.
l In 2017, the Port was awarded a $6.55 million Connect Oregon grant to expand rail
access at the East Beach Industrial Park.
South Morrow Industrial Park
l Approximately 103-acre site of former lumber mill located 1-mile northwest of Heppner.
l Site provides a wide variety of vacant land and buildings.
l Port owns four properties at the park.
l Adequate water, sewer and power on site.
The Port of Morrow works closely with local communities and governments to provide targeted
incentives to existing and new businesses that invest in the local community. Partnerships between
the Port of Morrow, Business Oregon, Morrow County and the City of Boardman though the
Columbia River Enterprise Zone II provides limited property tax abatement to qualified private
investment and job creation within the Port District (Exhibit 2).
Exhibit 2: Port District
Source: 2020 Strategic Business Plan
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I.A.2. Port’s Competitive advantages for Attracting Economic
Development
The Port’s location along the Columbia River and key transportation routes allow it to serve as a
gateway for the region. The Union Pacific Railroad (UPRR) mainline passes through a rail loop at
the East Beach Industrial Park connecting the Port with regional railways. Incoming barges handling
container shipments transfer to trucks at the Port at one of the various marine terminals. Terminal 3
(T-3), operated by Tidewater, is the largest container terminal upriver from Portland, handling
approximately 11,000 containers from barge to truck annually. Outgoing barges traveling the
Columbia River from the Port are within 12 hours of oceangoing ports: Portland, Vancouver,
Olympia, Tacoma and Seattle.
I-84, which borders the Boardman Industrial Park to the south, gives the Port access to east-west
corridors while I-82 east of Boardman provides north-south access. It is estimated that over 8 million
people reside within a half-day drive to/from the Port of Morrow: including Seattle, Tacoma,
Portland, Vancouver, Boise and other regions (Exhibit 3).
Exhibit 3: Truck Transportation Travel Times to/from Port of Morrow
I.B. PORT’S CONTRIBUTION TO OREGON
The Port of Morrow, along with local port-related businesses employ an estimated 3,714 direct
workers (January 2020 estimate) which in-turn generate annual total economic output of $2.5
billion for the Morrow-Umatilla county region. Several large tenants within the Port provide
thousands of jobs to Oregon workers within a wide range of industrial sectors. Representative tenants
include: Lamb Weston, Avista Corporation, and Portland General Electric Company.
The Port of Morrow is also a leader in sustainable agriculture and energy development, and provides
state-of-the-art heat and wastewater recovery systems for various industrial, energy and food
production methods.
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Section II. REGIONAL OVERVIEW
II.A. LOCAL POPULATION AND INCOME LEVELS
Regional population continues to expand and reach new highs every year. As indicated in Exhibit 4,
Morrow County population increased to 12,825 residents in 2020. Umatilla County population also
reached a new record at 81,495 in 2020. The Oregon Office of Economic Analysis (OEA) expects the
long-term population growth in Morrow and Umatilla counties to be on par with the state average,
where cities such as Boardman are likely to grow the fastest.
Exhibit 4: Population Trends, Selected Morrow and Umatilla County Population Centers
Source: U.S. Census (2000, 2010), PSU College of Urban and Public Affairs, annual pop. estimates (2020)
Over the 20-year period from 1999 to 2019, income levels in Morrow and Umatilla County roughly
stayed in line with the state of Oregon as a whole. As indicated in Exhibit 5, the median household
income in Morrow County was approximately $54,269 in 2019 and the average per capita income
level was $23,682.
Exhibit 5: Income Trends
Source: U.S. Census, American Community Survey. 1999 in nominal dollars. 2010-19 in inflation-adjusted dollars.
Compound Annual Growth
Rate (CAGR)
1999 2010 2019 CAGR
Morrow County $37,521 $43,902 $54,269 1.86%
Umatilla County $36,249 $45,861 $54,699 2.08%
Oregon $40,916 $49,260 $62,818 2.17%
Washington $45,776 $57,244 $73,775 2.41%
U.S.A. $41,994 $51,914 $62,843 2.04%
Morrow County $15,802 $20,201 $23,682 2.04%
Umatilla County $16,410 $20,035 $24,444 2.01%
Oregon $20,940 $26,171 $33,763 2.42%
Washington $22,973 $29,733 $41,556 3.01%
U.S.A. $21,587 $27,334 $34,103 2.31%
Median
Household
Income
Per Capita
Income
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According to Oregon Employment Department, average wages in Morrow County began to exceed
the Oregon statewide average beginning in the 2015-16 period. This trend has continued into 2020,
as average wages in Morrow County were $60,584, compared with the Oregon average of $59,918
(Exhibit 6).
Exhibit 6: Average Wage Per Job
Source: Oregon Employment Department, compiled by FCS GROUP.
II.B. EMPLOYMENT
The Port of Morrow is located within the Pendleton-Hermiston Metropolitan Statistical Area (MSA)
and is adjacent to the Kennewick-Richland-Pasco MSA (Tri-Cities area) in Washington. There are
approximately 176,300 people within the Port of Morrow’s civilian labor force (less than 1-hour
commute).
The Oregon Employment Department (OED) expects an annual employment growth rate of 0.9
percent in the eastern Oregon job base from 2017 to 2027 (this base is defined as Baker, Grant,
Harney, Morrow, Umatilla, Union, and Wallowa counties). A net increase of 7,700 jobs is forecasted
for this region over the 10-year period. The largest increase in job growth is expected in
manufacturing, government (tribal, local, state, and federal), transportation/warehousing/utilities,
leisure and hospitality, and retail trades.
II.B.1. Unemployment Rate
Unemployment rates in Morrow and Umatilla counties have generally been declining for the past
several years. As of May 2021, the local unemployment rate for Morrow County was 5.3%, which is
slightly lower than the State of Oregon average (6.0%). Beginning in the 2009-10 period, Morrow
County Unemployment has trended closely in line with the rate observed statewide. Through the
onset of the COVID-19 pandemic, Morrow County has experienced a lower unemployment rate than
the state, as indicated in Exhibit 7.
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Exhibit 7: Unemployment Rate (seasonally adjusted)
Source: Oregon Employment Department, compiled by FCS GROUP.
II.B.2. Morrow County Economic Drivers
The total estimated value added (GDP) from all public and private workers and establishments
within Morrow County increased from $851 million in 2017 to $989.4 million in 2019 (inflation
adjusted dollars).
As shown in Exhibit 8, the leading sectors that are driving the regional economy (based on annual
GDP) include:
l frozen food manufacturing,
l electric power generation,
l state and local government,
l data centers,
l vegetable and melon farming,
l support activities for agriculture,
l cattle and milk production, and
l grain farming.
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Exhibit 8: Morrow County Employment, Output and GDP: 2019 (ranked by GDP)
II.B.3. Port-Related Business Activity
There are nearly 50 “direct port-related” businesses that operate within Port of Morrow industrial
lands or are dependent upon transportation and infrastructure facilities provided by the Port. Please
refer to Appendix A for a list of port-related businesses.
As indicated in Exhibit 9, the largest port-related sectors based on current job estimates represent
nearly 3,700 direct jobs. Major sectors include:
» Food & beverage manufacturing
» Wholesalers
» Crop and animal production
» Utilities
» Animal production and aquaculture
» Administrative and Support Services
» Chemical manufacturing
» Accommodation services
» Data processing
» Support activities for agriculture
» Telecommunications
» Warehousing and storage
Description Total Employment Total Output Total Value Added Labor Income
Frozen fruits, juices and vegetables manufacturing
1,559 $716,223,054 $155,677,093 $90,664,720
Electric power generation - Fossil fuel
129 $213,096,573 $103,797,841 $29,106,476
Electric power generation - Wind
60 $152,367,448 $85,776,662 $9,683,379
Data processing, hosting, and related services
228 $138,409,943 $68,089,393 $32,024,150
Vegetable and melon farming
492 $86,212,487 $47,303,481 $22,795,846
Local govt: education
511 $46,630,114 $46,630,114 $39,970,590
Support activities for agriculture and forestry
1,044 $40,547,022 $31,656,752 $31,776,993
Dairy cattle and milk production
215 $183,840,752 $30,977,832 $9,432,123
Grain farming
107 $61,042,846 $26,948,138 $5,821,413
Beef cattle ranching
128 $89,995,432 $25,701,061 $2,926,924
Management of companies and enterprises
115 $32,833,371 $22,327,942 $19,136,912
Electric power transmission and distribution
29 $41,091,745 $19,266,389 $5,187,231
All other crop farming
455 $32,356,905 $18,840,377 $14,478,637
Wired telecommunications carriers
89 $36,489,975 $17,451,259 $7,097,488
Local govt: other services
199 $16,799,164 $16,799,164 $14,378,076
Cheese manufacturing
186 $161,816,022 $15,542,611 $11,748,097
Wholesale - Other nondurable goods
83 $24,573,882 $13,185,277 $6,910,544
Local govt: hospitals and health services
94 $10,980,744 $10,980,744 $9,532,707
Other real estate
135 $25,374,839 $9,536,721 $4,487,417
Scientific research and development services
55 $13,883,355 $7,992,716 $4,670,089
Subtotal: Top 25 Sectors
5,915 $2,124,565,674 $774,481,566 $371,829,812
Other County Industries
2,682 $463,453,736 $214,875,411 $124,119,275
Total: Morrow County
8,597 $2,588,019,410 $989,356,978 $495,949,086
Source: Implan model for Morrow County
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Exhibit 9: Port-Related Business Sectors
Source: Estimates by FCS GROUP and Port of Morrow.
*Job estimates reflect full and part-time workers.
II.C. MAJOR INVESTMENTS AT THE PORT OF MORROW
In addition to Port operations and related-businesses, the level of public and private construction
investment that is underway or planned at Port of Morrow generates considerable economic benefits
for the region and the state of Oregon.
Over the 2016 to 2020 (4-year time frame) it is estimated that over $3.8 billion in private capital
investments were made by Port-related businesses. According to the Morrow County Assessor, the
largest investments included new data centers, food processing facilities, warehousing/storage
facilities and apartment developments.
The Port continues to make and leverage significant infrastructure investments. The current adopted
Capital Improvement Plan for the Port includes $211.5 million in public infrastructure investments to
be made over the next several years. The economic impact of these major investments has been
included in this study, as described in the next section. Recent developments and investments made
in the Port District include the following:
l Capacity improvements for water, sewer, and cold storage in 2019. The Port has also added its
first new well in 15 years, adding 2,300 gallons per minute to its water capacity and added an
additional 5 miles of pipeline to its wastewater system and a lift station.
NAICS
Code
Description
Jobs*
311 Food Manufacturing 1,292
424 Merchant Wholesalers, Nondurable Goods 875
111 Crop Production 380
221 Utilities 308
112 Animal Production and Aquaculture 276
561 Administrative and Support Services 88
325 Chemical Manufacturing 59
721 Accommodation 57
518 Data Processing, Hosting and Related Services 55
115 Support Activities for Agriculture and Forestry 49
517 Telecommunications 46
484 Truc k Transportation 35
493 Warehousing and Storage 30
423 Merchant Wholesalers, Durable Goods 21
562 Waste Management and Remediation Services 15
441 Motor Vehicle and Parts Dealers 15
611 Educational Services 14
321 Wood Product Manufacturing 11
483 Water Transportation 7
488 Support Activities for Transportation 7
238 Specialty Trade Contractors 6
327 Nonmetallic Mineral Produc t Manufacturing 4
813 Religious, Grantmaking, Civic, Professional and Similar Organizations 4
811 Repair and Maintenance 1
Total 3,654
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l Construction on the Wheatridge Renewable Energy Facility, a 350-megawatt wind and solar
energy farm operated by Portland General Electric Co. (PGE) and NextEra Energy, began in
January 2020. Wind components should be in service by the end of 2020, and the solar and
battery portions are expected to be operational in 2021.
l An additional 42,000 square feet expansion of cold storage warehouse space to serve several food
processing businesses that operate within a 10-mile radius, among other users. The expansion has
added roughly 10,000 additional pallet positions at refrigeration temperatures — unique among
Eastern Oregon’s dry storage and frozen storage options.
l In 2018, the Port was awarded a roughly $19 million U.S. Department of Transportation’s
(USDOT) Better Utilizing Investments to Leverage Developments (BUILD) grant to fund the
Port’s future Columbia River Barge Terminal Rail Access Project, which will extend new rail
lines from the UPRR mainline to Port marine terminals enabling rail-to-barge access for
shipments along the Columbia River. The project is expected to be completed in 2023.
l The Port received a USDOT Maritime Administration (MARAD) Marine Highway Project
Designation in 2019, which allows the Port to pursue federal funding for infrastructure
improvements to the Port’s marine terminals. The Port leveraged this designation and was
awarded roughly $1.6 million in federal funding from USDOT to develop a breakbulk operation
at Terminal 1.
l In 2017, the Port was awarded a $6.55 million Connect Oregon grant to expand rail access at the
East Beach Industrial Park.
l Finalization of an agreement for a solar project that will cover approximately 800 acres near the
Boardman Airport.
l Participation in the Columbia Development Authority (CDA) on infrastructure planning for when
the U.S. Army transfers the former Umatilla Chemical Depot to the CDA, which will then
develop parts of the property for industrial use.
l The Neal Early Learning Center added an additional 9,600 square feet of classrooms and a
multipurpose room allowing the center to serve additional children. The center is a collaborative
effort between the Port, InterMountain Education Service District, the Morrow County School
District, and Umatilla-Morrow Head Start.
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Section III. ECONOMIC IMPACT
METHODOLOGY
The economic impact (as measured by jobs, compensation, output, value added GDP and tax
revenues) of the Port of Morrow’s operations, land and facilities is measured using a regional input-
output model named IMPLAN. The IMPLAN model is a useful tool for understanding the inputs and
outputs of local and regional economies by measuring the direct and secondary benefits of changes in
industrial output (sales), GDP (valued added), income, taxes, and employment.
The IMPLAN model takes into account national, regional and local economic trends and spending
multipliers to estimate: direct impacts (income, sales, wages, profits associated directly with
producing a good or service); indirect impacts (backward linkages including supplies/services needed
as inputs for producing the good or service); and induced impacts (forward linkages that depict how
the direct and indirect impacts cause a multiplier effect in the regional economy as income is spent
and re-spent on various goods, services and investments). The IMPLAN model includes 535 specific
industry sectors.
Exhibit 10: IMPLAN Model Flow Chart
Terminal Operations
Business Revenue
Payroll
Retained Earnings,
Dividends,
Investments
Local
Purchases
Indirect
Jobs
Direct
Jobs
Re-
spending
Induced
Jobs
Taxes
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Exhibit 10 illustrates how Port-related spending (attributed to Port operations, land and facilities)
generates business revenue that translates into local payroll and direct jobs; local purchases and
indirect jobs; and induced impacts (household spending based on employee earnings). Please refer to
www.implan.com for more detailed information regarding the IMPLAN model.
Exhibit 11 illustrates the three measures of direct, indirect and induced economic activity that are
generated by Port-related business spending.
Exhibit 11: IMPLAN Impacts
The first step in conducting the economic impact analysis included the identification of specific
business enterprises that rely on Port of Morrow operations, land and facilities for their business to
succeed. In addition to direct Port of Morrow spending on operations (Port staff and operational
spending). The specific businesses entities that serve as the basis for the economic impact analysis
are referred to as “Port-related” and are listed in Appendix A.
The second step in the economic impact analysis included working with the Oregon Employment
Department to obtain “covered” worker payroll data for the Port-related tenants. These data reflect
2019 worker and payroll data that has been reported to the State of Oregon for calculating state
unemployment and workers compensation insurance tax rates.
Because IMPLAN measures impacts using total employment or payroll as opposed to “covered”
employment or payroll, the third step involved adjusting local employment and payroll estimates
from the Oregon Employment Department (Quarterly Census of Earnings and Wages) to reflect total
employment (full time and part time jobs). Since IMPLAN employment resembles Bureau of
Economic Analysis data, the basis for this conversion was derived by comparing county employment
Port of Morrow June, 2021
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sector data obtained from IMPLAN with Morrow County Bureau of Economic Analysis (CA-25
reports).
1
The fourth step included identifying the applicable IMPLAN sectors that corresponds with each
North American Industrial Classification System (NAICS) code that are on file with the Oregon
Employment Department.
Steps 1-4 are used to compile the assumptions used as direct inputs for the Permanent Economic
Impact Analysis of the Port of Morrow.
The final fifth step entailed running the IMPLAN Model for Morrow County to account for the
capital investments and construction-related economic impacts resulting from Port and private
business capital investments in infrastructure, buildings and equipment.
1
Oregon Employment Department data only reflect wage and salary employment that is covered by
unemployment insurance, and federal civilian jobs. Hence, that information tends to undercount some
part-time workers, very small proprietors, railroads, and some private school employment.
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Section IV. ECONOMIC IMPACTS
There are two types of economic impacts that are identified and quantified by this analysis:
Permanent Annual Impacts, and Temporary Construction Impacts.
IV.A. PERMANENT ANNUAL ECONOMIC IMPACTS
The permanent annual economic impact of the Port of Morrow and the Port-related businesses is
summarized in Exhibit 12. Key highlights from this analysis based on Jan. 2020 payroll estimates
for Port-related businesses include the following:
Annual Port-Related Economic Impacts
l Total employment of 6,709 jobs (3,536 direct, 2,796 indirect, and 377 induced)
l Total output of $2.49 billion ($1.95B direct, $0.48B indirect, $0.06B induced)
l Total GDP of $909 million ($651M direct, $222M indirect, $36M induced)
l Over $402 million in labor income ($251M direct, $137M indirect, $14M induced)
l Annual local/state tax revenue/payments of over $104.4 million (includes in lieu payments)
l Annual federal tax revenue/payments of nearly $88 million
Exhibit 12: Summary of Annual Permanent Economic Impacts of the Port of Morrow, Jan. 2020 est.
In comparison to the prior 2017 economic impact analyses conducted for the Port of Morrow (using
similar IMPLAN input-output modeling methodology) it is apparent the direct employment at port-
related businesses declined slightly between 2017 and January 2020. During 2020, the global
COVID-19 pandemic hampered business investment further. However, as we enter the 2
nd
Quarter of
2021, private payrolls have been increasing in both Oregon and nationally. We expect to see Port-
related business activity at or above 2017 levels by the end of 2021.
The top 10 business sectors that benefit from the Port of Morrow are listed in Exhibit 13. These
sectors represent about 65% of the total economic impact of the Port (measured by GDP). Leading
business sectors (sorted by GDP) include:
» Electric power generation (180 direct jobs and $157 million in GDP)
» Grain farming (407 direct jobs and $106 million in GDP)
» Frozen food manufacturing (997 direct jobs and $91 million in GDP)
Impact Type Employment Labor Income Value Added Output
Direct Effect
3,536 $251,244,842 $650,855,323 $1,951,719,989
Indirect Effect
2,796 $137,341,978 $221,765,975 $480,824,672
Induced Effect
377 $13,772,856 $36,123,969 $62,135,851
Total Effect
6,709 $402,359,676 $908,745,267 $2,494,680,512
State/Local Tax
$104,403,328
Federal Tax
$88,007,211
Source: Implan model for Morrow
Port of Morrow June, 2021
Economic Impact Analysis page 17
17
» Nondurable goods wholesale trade (485 direct jobs and $88 million in GDP)
» Dairy cattle and milk production (359 direct jobs and $52 million in GDP)
» Petroleum wholesale trade (37 direct jobs and $33 million in GDP)
Exhibit 13: Top 10 Sectors for Permanent Economic Impacts (sorted by GDP), Jan. 2020 est.
IV.B. TEMPORARY CONTRUCTION IMPACTS
In addition to the permanent annual economic impacts of Port operations and related-businesses, the
public and private construction investments also generate measurable economic benefits.
Private-Sector Investments in Facilities and Equipment
Major investments in data centers, warehousing facilities and manufacturing centers at the Port of
Morrow have generated over $3.8 billion in private capital investment during the 2016 to 2020 time
frame. The aggregate level of economic impact from this private investment is summarized in
Exhibit 14 and includes:
l Total construction-related employment of 33,150 jobs (measured by person-years of
employment). This level of investment has supported over 8,200 jobs per year in a wide variety
of sectors such as construction managers/laborers, wholesale material suppliers, truck drivers and
various business service professions.
l Aggregate output (sales) of nearly $4.8 billion
l Aggregate GDP (value added) of over $2.4 billion
l Over $2 billion in labor income
l Aggregate local/state tax revenue and in lieu payments of over $152 million
l Aggregate federal tax revenue/payments of over $330 million
Exhibit 14: Private-Sector Business Investment Spending
Industry Employment Labor Income Value Added Output
40 - Electric power generation - Fossil fuel
180 $39,801,168 $157,043,650 $324,181,658
2 - Grain farming
407 $20,361,931 $105,735,367 $238,752,601
77 - Frozen fruits, juices and vegetables manufacturing
997 $59,155,816 $91,341,273 $419,959,446
400 - Wholesale - Other nondurable goods merchant wholesalers
485 $43,726,219 $88,314,394 $164,717,623
12 - Dairy cattle and milk production
359 $16,218,906 $52,988,594 $321,611,876
399 - Wholesale - Petroleum and petroleum products
37 $2,831,330 $32,981,286 $47,713,673
436 - Data processing, hosting, and related services
28 $5,639,719 $11,643,525 $18,357,125
82 - Cheese manufacturing
106 $7,664,993 $9,910,842 $93,057,643
433 - Wired telecommunications carriers
34 $3,832,721 $8,914,355 $18,020,821
160 - Industrial gas manufacturing
30 $4,364,600 $8,911,233 $29,734,005
Source: Implan model for Morrow County
Private-sector Construction Impact: 2016 to 2020
Impact Type Employment Labor Income Value Added Output
Direct Effect
29,549 $1,741,247,511 $1,963,147,919 $3,832,500,000
Indirect Effect
1,571 $117,087,129 $188,905,228 $365,142,856
Induced Effect
2,031 $73,722,775 $193,637,829 $332,983,467
Total Effect
33,130 $1,932,057,379 $2,345,690,994 $4,530,626,326
State/Local Tax
$144,333,440
Federal Tax
$313,281,196
Source: Implan model for Morrow County.
Port of Morrow June, 2021
Economic Impact Analysis page 18
18
Infrastructure and Facility Investments by the Port of Morrow
The recently adopted Capital Improvement Plan for the Port of Morrow includes over $211 million in
facility improvements and infrastructure spending over the next several years. The aggregate level of
economic impact from Port infrastructure and facility investment is summarized in Exhibit 15 and
includes:
l Total construction-related employment of 1,828 jobs (measured by person-years of employment).
l Aggregate output (sales) of over $250 million.
l Aggregate GDP (value added) of over $129 million
l Over $106 million in labor income
l Aggregate local/state tax revenue and in lieu payments of nearly $8 million
l Aggregate federal tax revenue/payments of over $17 million
Exhibit 15: Private-Sector Business Investment Spending
As shown in Exhibit 16, the top 10 business sectors that benefit from regional construction spending
account for 92% of the total employment-related impact. In addition to construction businesses,
significant benefits are reaped by the following sectors: machinery rental, wholesale, concrete
manufacturers, management of companies, data processing, and architectural, engineering and related
services.
Exhibit 16: Top Businesses Impacted by Port Construction
IV.C. COMMUNITY DEVELOPMENT BENEFITS
In addition to the economic benefits and tax payments that have been quantified and discussed above,
other community wide benefits attributed to the Port of Morrow include:
Port of Morrow Construction Impact based on the adopted CIP
Impact Type Employment Labor Income Value Added Output
Direct Effect
1,631 $96,092,328 $108,338,104 $211,500,000
Indirect Effect
87 $6,461,560 $10,424,907 $20,150,741
Induced Effect
112 $4,068,458 $10,686,080 $18,375,996
Total Effect
1,828 $106,622,345 $129,449,092 $250,026,737
State/Local Tax
$7,965,172
Federal Tax
$17,288,708
Source: Implan model for Morrow County.
Industry Display Employment Labor Income Value Added Output
54 - Construction of new highways and streets
13,547 $656,017,680 $1,065,802,387 $2,022,000,000
51 - Construction of new manufacturing structures
17,632 $801,056,173 $1,005,683,636 $2,022,000,000
453 - Machinery and equipment rental and leasing
81 $2,523,907 $36,264,408 $45,222,789
399 - Wholesale - Petroleum and petroleum products
- $1,940,588 $23,435,951 $27,178,694
204 - Ready-mix concrete manufacturing
202 $11,831,340 $20,965,269 $77,609,806
469 - Management of companies and enterprises
81 $13,309,591 $15,439,224 $22,703,469
436 - Data processing, hosting, and related services
40 $7,071,640 $15,091,804 $30,678,129
457 - Architectural, engineering, and related services
243 $8,760,950 $13,817,297 $30,196,800
29 - Sand and gravel mining
81 $8,560,470 $13,300,837 $27,515,105
461 - Other computer related services, including facilities management
81 $4,174,458 $9,415,160 $16,226,138
Source: Implan model for Morrow County
Port of Morrow June, 2021
Economic Impact Analysis page 19
19
l Participation in local/state governmental partnerships through the Columbia River Enterprise
Zone that are providing flexible funds used for local community development, such as the
recently completed Port View Apartments.
l Providing first-class meeting facilities for businesses and community groups and lodging
facilities for overnight visitors;
l Providing community-based education and visitation facilities, including the SAGE Center and
Neal Early Childhood Learning Center.
l Providing recreational opportunities such as the site for the Boardman Recreation Center.
l Maintaining a viable rail and barge transportation network that conserves fuel and improves air
quality in comparison with truck transportation.
l Establishing sustainable heat and wastewater recovery systems that conserve energy and utilize
less water.
The Port of Morrow contributed to the expansion of the Neal Early Learning Center in 2020.
Constructed in 2017, the center provides care and education for children ages birth to five in
Morrow County.
As previously mentioned, the Port of Morrow works closely with local communities and
governments to form partnerships though the Columbia River Enterprise Zone II (CREZ), which
provides limited property tax abatement to qualified private investment and job creation within the
Port District.
Over the past few years, CREZ has provided several million dollars in annual distribution for a
wide variety of community benefits including:
l Housing
l Education
l Public Safety
l Local Enhancements
In addition, the Port of Morrow provides meeting facilities for community activities, conferences and
workshops for its stakeholders and businesses at its headquarters building and the SAGE Center. The
Port also provides recreational opportunities for access to the Columbia River, and is working with
the City of Boardman to provide new ball fields for residents and employees. The Port has also
provided limited financing for housing and community development investments that promote fair
housing and telecommunications throughout the Port District.
Port of Morrow June, 2021
Economic Impact Analysis page 20
20
Section V. FISCAL IMPACTS
V.A. REVENUE FROM PROPERTY AND INCOME TAXES
To better understand the local benefit of the Port of Morrow and its related businesses, FCS GROUP
analyzed Morrow County Assessor data to identify current levels of property taxes paid by major
Port-related businesses. As indicated in Exhibit 17, over half of the top 20 taxpayers in Morrow
County are considered to be port-related.
Exhibit 17: Top 20 Taxpayers in Morrow County, 2020
Source: Morrow County Assessor.
Port-related businesses added over $3.0 billion in Real Market Value and over $214 million in
Assessed Value to the Morrow County tax rolls between 2016 and 2020. This increase in assessed
property value generated an additional $5 million in annual tax receipts over this four-year time
frame. As shown in Exhibit 18, the amount of annual property tax revenue generated by major Port-
related businesses yields over $21 million in annual tax revenue for Morrow County, local
governments and special taxing districts.
Port-related Owner Name Property Tax Assessed Value Real Market Value
P
AMAZON DATA SERVICES, INC 9,381,154$ 661,869,690$ 3,471,764,810$
P
AVISTA CORPORATION 3,625,850 208,550,000 208,550,000
P
PORTLAND GENERAL ELECTRIC CO 3,330,251 220,435,180 726,272,000
THREEMILE CANYON FARMS, LLC 2,952,009 220,618,821 272,083,022
P
LAMB WESTON, INC 1,911,822 117,665,580 384,033,840
GAS TRANSMISSION NORTHWEST CORP 1,327,473 94,959,000 94,959,000
P
COLUMBIA RIVER PROCESSING, INC 768,005 53,945,490 54,035,460
P
PORT OF MORROW 539,180 35,825,310 38,210,680
P
RDO/CALBEE FOODS LLC 434,413 30,657,000 30,657,000
P
UNION PACIFIC RAILROAD CO 378,061 27,069,290 88,707,544
P
PACIFIC ETHANOL COLUMBIA, LLC 372,388 26,279,860 26,279,860
CENTURYLINK PROPERTY TAX 370,325 24,065,000 24,065,000
FARMLAND RESERVE, INC 355,780 25,567,914 48,004,554
P
OREGON POTATO COMPANY 298,087 17,412,186 17,808,267
P
PORT VIEW APARTMENTS, LLC 270,128 14,445,660 15,779,260
WILLOW CREEK ENERGY LLC 228,759 15,870,840 43,750,000
EASTERDAY FARMS DAIRY LLC 201,900 15,201,684 15,484,248
PACIFCORP (PP&L) 199,740 15,084,000 15,084,000
CLEAVER LAND, LLC 188,827 13,494,291 16,316,631
ECHO PROJECT 167,133 12,830,410 22,787,000
Total 27,301,285 1,851,847,206 5,614,632,176
Port Related 21,309,340 1,414,155,246 5,062,098,721
Port of Morrow June, 2021
Economic Impact Analysis page 21
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Exhibit 18: Annual Property Tax Revenue from Major Port-Related Businesses, 2016-2020
Source: Morrow County assessor data, FCS GROUP.
Annual tax payments to local districts (including Morrow County, cities, school districts, etc.)
amounted to over $21.3 million in FY 2020/21. Tax recipients ranged from $40,162 (Boardman
Cemetery District) to $5.8 million (Morrow County government). Detail provided in Exhibit 19.
Exhibit 19: Annual Local Tax Payments by Port-Related Businesses in Morrow County, 2020
$11 M
$718 M
$718 M
$17 M
$1,200 M
$1,996 M
$21 M
$1,414 M
$5,062 M
PROPERTY TAX
ASSESSED VALUE REAL MARKET VALUE
2013 2016 2020
Port of Morrow June, 2021
Economic Impact Analysis page 22
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APPENDIX A: PORT-RELATED BUSINESSES
l Port of Morrow
l Tidewater Terminal Co.
l Oregon Pump Works
l Columbia Improvement District
l Boardman Foods Inc
l Cascade Specialties Inc
l Mid Columbia Excavation Inc
l Boardman Chip Co Inc
l Oregon Potato Co
l Columbia River Proc. (Tillamook Cheese)
l Frederickson Farming LLC
l ITC Services
l Oregon Hay Products Inc
l Portland General Electric
l LTI Inc
l Cemex Inc
l Lamb Weston
l Pacific Ethanol Inc
l Calbee North America, Llc
l River Lodge
l Columbia River Dairy LLC
l Castle Rock Farming LLC
l Collins Management Corporation
l Willow Creek Dairy
l JVB Dairy
l Taylor Transfer Inc
l Devin Oil Co Inc
l Tredit Tire & Wheel Co Inc
l Finley Buttes Landfill
l Les Schwab Tire Center
l Finley Bioenergy LLC
l Baker Produce Inc
l Windwave Technologies
l VADATA INC
l Barenbrug USA
l Morrow Cold Storage
l Lamb Weston / Watts Brothers
Port of Morrow June, 2021
Economic Impact Analysis page 23
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l Barrett Business Services Inc.
l Acts On Staffing
l American Rock Products
l Tidewater Barge Terminals
l Ordnance Brewing
l Morrow County Grain Growers
l JSH Mint
l NW Container
l Workforce Training Center