Columbia Sportwear might return to Portland
The sportswear maker, now in Washington County, has Portland on its list of potential headquarters sites
Tuesday, May 22, 2007
DYLAN RIVERA and RYAN FRANK
The Oregonian
Columbia Sportswear, which became a symbol of business frustration with Portland government when it relocated to Washington County in 2001, is quietly exploring a move back to the city where it was founded in 1938.
The company is looking at Portland as one of three options for its expansion, a source close to talks between the city and the company said Monday. The other two are to expand at its current site just off U.S. 26 near Sunset High School, or to build on vacant land elsewhere in the suburbs.
While a big-city move may cost more, it could put the company near one of the country's most vibrant downtowns and within walking distance of art galleries, condos and restaurants.
The company's strong growth -- its annual sales have doubled to more than $1.2 billion since 2000 -- is propelling the discussion of headquarters expansion. But the company is offering no comments on the discussion, and sources say decisions aren't imminent.
"We're happy where we are," company chief executive Tim Boyle said through a spokeswoman. "We have no plans to move, but we evaluate all options as they come to us."
In 2000, the company said it was considering a move from Portland's St. Johns area to the Central Eastside Industrial District, near downtown. Instead, it bolted to a warehouse-office district off U.S. 26 in Washington County. Its complaints about the difficulty of working with city government in building a new headquarters embarrassed city political leaders but resonated with business leaders. Boyle continued his complaints about city government for years.
Landing Columbia's 636 headquarters jobs in the region's core would be the biggest single relocation of jobs to the downtown area in decades.
A source close to the city's side of the talks says he hasn't seen anything yet to indicate Columbia Sportswear is seriously considering such a move. He says the company is doing an internal review of the costs, and he expects it to approach the city with a proposal. He expects the company would need $5 million more in government incentives to make the move pencil out for the company's shareholders.
Austin Raglione, chief of staff to Mayor Tom Potter, said the city has had discussions with the company about returning to Portland ever since it left. "We would love to have Columbia Sportswear move their headquarters back to Portland," Raglione said.
Boyle appears to feel a pull back to the city.
In 2005, Boyle cared enough about Portland to devote his speech at the Portland Business Alliance's annual meeting to tips for a better-run city, including some sharp jabs at city government. Last year, Columbia committed to donating $1 million for Portland parks, while Boyle publicly professed his love for Portland in an interview. And this month, Boyle donated $10,000 to back Mayor Tom Potter's reforms for Portland City Hall.
Expanding product lines
For Columbia, the headquarters issue comes at a time of great transformation.
The company has grown beyond a maker of parkas and other outdoor apparel, delving into footwear as a source of robust revenue growth. Its sales have doubled from $614 million in 2000 to $1.29 billion in 2006.
Early last year, Columbia spent $15 million to buy specialty footwear manufacturer Montrail. It already owned Sorel, a boot maker. Though parkas and coats will continue to be big sellers, Columbia predicts that its footwear sales will eventually outpace outerwear.
Within Portland, both sources confirmed the company is considering the Portland Public Schools headquarters north of the Rose Garden arena and the Burnside Bridgehead at the bridge's east end as possible sites. Shiels Obletz Johnsen, a Portland real estate firm, is helping Columbia Sportswear with its search, sources say. The consulting firm would not comment.
High-stakes gambles
Real estate brokers say a move from the suburbs to the city would likely be more expensive for Columbia, and city politics can alienate some businesses. But being in Portland could place the company at the geographic center of employee commuting patterns. Anchoring an urban mixed-use development would raise the company's profile.
Opting for a suburban campus could save money, focus attention inward on company culture, increase security and anchor growth in one part of the region. Depending on where most employees live, it could add convenience.
"The big picture discussion would be the cost of development and accessibility to workforce," said Gordon King, a real estate broker with Colliers International who helps companies find office space.
The 1999 opening of the ODS Tower downtown ushered in a new status for the insurance company of the same name, which is based in the high-rise, he said.
Building a new suburban campus, possibly with the lasting growth that Nike has achieved in its base, would require a move to Wilsonville or Hillsboro.
"That may not fit with their creative employees," King said.
Dylan Rivera: 503-221-8532,
dylanrivera@news.oregonian.com
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