The Downtown Klamath Falls grocery store building — soon to open as Holiday Market — had no activity following the departure of Haggen Foods in 2015.

Now, at the end of August, it’ll add more than 50 jobs to the area and give nearby residents access to groceries.

Klamath County Economic Development Association (KCEDA) chalks up landing Holiday Market as its biggest win this year. It “connected the dots” to get the deal to the table, and staff praised Klamath County Commissioner Donnie Boyd for sealing the deal.

Staff noted that it’s not often that a pay-to-play business development association gets involved in small retail in “most places.”

“But this is Klamath Falls,” said Rick Abel, head of development and retention at KCEDA. “This isn’t most places.”

Abel and others spoke briefly during the annual KCEDA meeting and dinner at Reames Country Club Tuesday, which featured a keynote address by Holiday’s owner, North State Grocery CEO Richie Morgan Jr.

Morgan told the audience that his goal is to have excellent customer service at Holiday.

“I want people to say that they wished they had a Holiday Market in their town,” he said, noting that the stores are employee-owned, hence all workers have a stake in making the stores successful.

Outgoing KCEDA CEO Greg O’Sullivan, also presented some farewell remarks.

Operations Director Andrew Stork said that this year’s annual meeting started “a chapter in the first phase” of the firm’s continued plans.

Increased exposure

KCEDA could be described as a “scout” for Klamath County that aims to bring interested businesses or other developments into the area. The nonprofit functions as a 501©(4) tax-exempt social welfare organization that switched to a “pay-to-play” model three years back.

This means that members among four priced tiers help pay for operations in hopes for enhanced local investments, in addition to $250,000 also provided from Klamath County and $50,000 from the City of Klamath Falls, annually.

Since shifting models in 2015, Stork said that their levels of exposure have increased tremendously: Forecasts show investment potential increasing from $150 million to $5 billion, in addition to potential job outlooks from 200 to more than 5,500.

Stork clarified that these numbers are related to the group’s ability to open new avenues with business interests, adding that the numbers “are representative of just trying to be on the radar.”

“Klamath County is more on the map than it used to be,” Stork said.

In addition to new prospects and Holiday Market, Stork also touched on setting new marketing goals, receiving local opportunity zone designations from the state and assisting other existing business to either expand or retain operations. One example Stork gave was working to help iQor, a local call center, renew its lease and stay in the area.

Future projects and other developments were also mentioned, though KCEDA staff said they could not yet comment on additional details.

Reflecting on goals, future progress

O’Sullivan spoke on his own experiences. The former CEO announced his resignation in June, citing real estate, farming and family interests in California. Members of the KCEDA board are currently looking to fill the position.

In a previous interview, O’Sullivan told the H&N he was proud to have helped assist with bringing Cascade Potato, Holiday Market, Craft3 and American Garden Products to the area. O’Sullivan said the group’s work has resulted in more than 850 jobs created within the Basin.

KCEDA Board President Lauren Jespersen said he and others were pleased with O’Sullivan’s work, which began following years of uncertainty related to the association’s goals and purpose.

“We had a big ask of him to rebuild this organization,” Jespersen said. “We needed someone who could build an effective team around him.”

What comes next?

O’Sullivan remains optimistic about KCEDA’s outlook moving forward. He also said he would keep an eye on Klamath County’s continued business endeavors.

“You’re known in the state of Oregon,” O’Sullivan told the crowd. “You’re known by site selectors. They’re watching you.”

Since shifting to a “pay-to-play” model, Stork said that they had also received assistance and praise from Economic Development for Central Oregon, a similar group that sought to bring more businesses into Bend and Deschutes County.

In Oregon, Bend led in the rate of business formation with one new business for every 28 residents and a total of 3,200, according to a February article from The Bulletin. EDCO CEO Roger Lee acknowledged his own workings with KCEDA in a letter presented at the meeting.

“I can confidently say that the Choose Klamath team is taking the needed steps to catalyze similar successes,” Lee wrote in his letter.

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KCEDA Talks Prospects, County Exposure at Annual Meeting (H&N)