12. Lois Cho, CHO Wines (Governor's Prosperity Council member)

Governor’s Prosperity Council Lois Cho’s Contributions for Meeting #2 February 17, 2026 Prepared by Lois Cho, Co-Founder & CEO of CHO Wines Member, Governor’s Prosperity Council This document is a working summary prepared for internal use only. It captures initial discussion themes, questions, and hypotheses from initial discussions with key stakeholders interpreted by Council member Lois Cho and does not represent final positions, recommendations, or policy direction. Please do not distribute externally or attribute specific viewpoints, as the Council is still in an active listening and evaluation phase.

Over the past month, I conducted a series of meetings and outreach efforts to gather input from industry and economic development stakeholders. This included meetings with the executive directors of the Oregon Wine Board, Willamette Valley Wineries Association, and Oregon Winegrowers Association; a presentation at the WVWA Annual Member Meeting; discussions with business owners at the Oregon Wine Symposium; and a distributed survey. Additional conversations were held with developers, small business owners, corporate wineries, legislators, lobbyists, and economic development organizations, as well as input from Oregon State University. The following section summarizes the themes that emerged from this outreach.

Current State: Oregon’s Economic Context Several stakeholders referenced broader economic indicators, including measures such as the Oregon Business Index and related analyses, which suggest that Oregon is facing challenges across multiple measures of competitiveness. Growth across major industry sectors appears uneven, and healthcare remains one of the few sectors consistently expanding, largely driven by demographic trends such as an aging population. Some participants noted that Oregon’s largest employers have remained concentrated among a relatively small number of organizations, and that the state has seen limited emergence of new large-scale industry sectors contributing to broad-based economic growth. There is also concern about fiscal constraints at the state level and uncertainty about how long-term economic development strategies will be funded. Some stakeholders observed that while regulatory streamlining and sector-specific initiatives are valuable, broader economic conditions (particularly job creation, wage growth, and disposable income) ultimately drive demand across many industries, including wine, agriculture, and hospitality. From this perspective, policies that strengthen overall economic health may have the most significant long-term impact on rural industries. Stakeholders described differing perspectives regarding rural economic development and land use. Some emphasized the importance of preserving high-value farmland and limiting commercial uses in rural areas, consistent with Oregon’s longstanding land-use framework. Others noted that rising costs, infrastructure limitations, and changing market conditions are creating pressure for agricultural businesses to diversify revenue through agritourism, direct sales, or limited hospitality uses. These perspectives reflect an ongoing effort to balance preservation with economic viability.
Observations from Wine Country Survey Responses Survey responses from winery operators and growers reveal a consistent set of operational and structural concerns. In the near term, respondents most frequently cited regulatory complexity, permitting challenges, and the need for increased marketing support to strengthen awareness of Oregon wine in competitive markets. Access to capital, grants, and financing tools was also identified as an area where businesses would benefit from additional support. Looking further ahead, respondents emphasized the importance of tax policy, incentives, workforce development, and research and development. Workforce challenges were a recurring theme, particularly related to housing affordability, seasonal labor availability, and rising wage pressures. Some respondents also noted that immigration policy and labor regulations affect

their ability to plan and operate effectively, especially in sectors where work is seasonal and time-sensitive. Businesses also reported that information about available programs, grants, and resources is often fragmented or difficult to navigate. This creates barriers to participation even when programs exist, and some suggested that improving communication and coordination could increase the effectiveness of existing initiatives without requiring significant new funding. 3. Structural Challenges Identified Across Discussions Across multiple conversations, stakeholders described a broader structural challenge related to fragmentation. Oregon has many agencies, boards, and organizations working toward economic development, tourism promotion, agricultural support, and marketing, but coordination among these entities is not always clear. This fragmentation can result in overlapping efforts, inconsistent messaging, and reduced efficiency in how funds and programs are deployed. This issue is not limited to a single sector. Participants noted that agriculture, tourism, and economic development programs often operate in parallel rather than in an integrated manner, which can make it difficult to implement cohesive strategies or measure statewide outcomes. While Oregon has strong institutions and programs, stakeholders frequently expressed the view that alignment and execution may be as important as additional funding. Stakeholders described differing perspectives regarding rural economic development and land use. Some emphasized the importance of preserving high-value farmland and limiting commercial uses in rural areas, consistent with Oregon’s longstanding land-use framework. Others noted that rising costs, infrastructure limitations, and changing market conditions are creating pressure for agricultural businesses to diversify revenue through agritourism, direct sales, or limited hospitality uses. These perspectives reflect an ongoing effort to balance preservation with economic viability. Recent legislative proposals, including House Bill 4153, illustrate the ongoing debate about how to balance farmland protection with the need for agricultural businesses to diversify through retail, agritourism, and value-added activities. Role of Economic Development Organizations (EDOs) ● Regional Economic Development Organizations such as SEDCOR, EDCO, Greater Portland Inc., and SOREDI already operate extensive business-support networks. ● These organizations often have direct relationships with employers, entrepreneurs, and investors and can respond more flexibly than state agencies in certain circumstances. ● Some stakeholders suggested that the state could more effectively utilize existing nonprofit EDO networks rather than developing parallel structures. ● EDOs frequently partner with the Regional Solutions Department and local jurisdictions to assist businesses navigating permitting, infrastructure, and financing.

There was also discussion about whether the state might benefit from formally designating regional EDO partners in certain initiatives, particularly where existing networks and relationships already support economic development activities. Examples of Programs and Partnerships Examples discussed included: ● The Rural Tax Exemption Program, which can support major facility or equipment upgrades. ● The Regional Innovation Hubs Program, administered by Business Oregon, which supports entrepreneurial and innovation ecosystems. ○ Some organizations that do not qualify directly for state funding have partnered with affiliated nonprofits to secure philanthropic support. ● Programs supporting: ○ Entrepreneurial development ○ Agricultural technology initiatives ○ Workforce housing coalitions ○ Small infrastructure projects such as sidewalks and accessibility improvements ○ Employer support initiatives, including childcare access Stakeholders noted that partnerships with universities, growers, and startups are already occurring in some regions, including on-farm trials and applied innovation projects. Coordination Between State Agencies and Regional Partners Several observations were made regarding coordination: ● Business Oregon is viewed by some stakeholders as effective in administering incentive and infrastructure programs but not positioned to address regulatory challenges directly. ● The Regional Solutions Department was described as historically effective in convening agencies to resolve interagency conflicts, particularly where businesses faced conflicting requirements from multiple regulators. ● Some stakeholders expressed the view that this coordination function has shifted in recent years toward infrastructure-focused projects, reducing its role in resolving regulatory bottlenecks affecting private-sector investment.

● There was discussion about whether Regional Solutions coordinators or similar mechanisms could be more actively utilized to help address complex permitting challenges. Several stakeholders, including higher education partners, emphasized that Oregon’s challenge is less about identifying priorities and more about aligning institutions, agencies, and regional partners around shared goals and execution. Having the universities at this table could also be a part of the solution. Universities also play a role in translating research into companies and jobs, supporting applied research, startup formation, and industry partnerships. Since 2013, Oregon State University alone has generated nearly 200 startups that have attracted significant private investment, demonstrating the potential of research institutions as economic development partners. 4. Land Use and Regulatory Complexity Land use policy emerged as one of the most complex and sensitive topics in discussions. Many stakeholders acknowledged that Oregon’s land use framework has played a significant role in preserving farmland and preventing sprawl, outcomes that are widely valued by agricultural producers. At the same time, businesses involved in agritourism and rural hospitality reported challenges related to permitting, county-level interpretation of rules, and litigation risk, all of which can introduce uncertainty and delay investment. Some stakeholders also noted that updating soil classifications or land-use designations can be costly and time-consuming, creating barriers to adaptive land management. Preservation advocates, however, emphasized that protecting high-value farmland remains essential to maintaining Oregon’s agricultural economy over the long term, and that certain types of development (particularly large-scale or resort-style projects) raise legitimate concerns about cumulative impacts. These differing perspectives reflect a shared interest in maintaining a strong agricultural base, but differing views on how to balance preservation with economic diversification in rural areas. 5. Workforce and Cost Pressures Workforce issues were consistently identified as a major constraint across industries. Rising housing costs in rural communities make it difficult for workers to live near employment centers, and businesses report ongoing challenges in recruiting and retaining staff. Seasonal industries, including agriculture and hospitality, face additional complexity because labor demand fluctuates significantly throughout the year. Some stakeholders expressed concern that certain labor policies do not fully account for the seasonal and time-sensitive nature of agricultural work, while others emphasized the importance of maintaining worker protections and fair compensation. In addition to labor costs, businesses also cited rising input costs, transportation expenses, and utilities as contributing to financial pressure, particularly for small and medium-sized enterprises.

Higher education institutions, including Oregon State University, identified workforce development and talent pipelines as central to long-term economic competitiveness. Universities play a significant role in aligning degree programs, credentials, and applied learning with sector needs and regional workforce demands, particularly through partnerships with employers and community colleges. Agricultural employers and processors noted that workforce availability and cost pressures remain significant challenges. Seasonal production cycles, labor shortages, and increasing wage and overtime requirements can create operational constraints, particularly in labor-intensive sectors such as specialty crops and winegrape production. Some stakeholders also noted that mechanization and innovation may play a growing role in addressing long-term labor constraints. 6. Marketing and Tourism Coordination Marketing and tourism coordination emerged as another area of concern. Oregon’s food, beverage, wine, and agricultural sectors are widely recognized as significant contributors to the state’s economy and identity, yet stakeholders often described marketing efforts as fragmented across regions, organizations, and agencies. This fragmentation can make it difficult to present a unified statewide narrative, particularly in national or international markets. Several participants compared Oregon’s approach to that of other states with well-known wine regions, where statewide branding and coordinated marketing strategies are more centralized, and regional differentiation occurs within a broader framework. Stakeholders emphasized that stronger alignment does not necessarily require new organizations or funding, but may benefit from clearer roles, shared priorities, and more consistent messaging across existing institutions. 7. Cautious Recommendations Based on discussions with industry stakeholders, regional economic development organizations (including insights shared by Abisha Romano of SEDCOR) and survey responses, several measured recommendations emerge. These reflect common themes around coordination, workforce, marketing, and regulatory predictability, while recognizing fiscal and structural constraints.

Improve Coordination Using Existing Structures ● Strengthen alignment between agencies already in place, including economic development, workforce, tourism, and regulatory agencies ● Clarify roles and communication channels among state agencies, regional economic development organizations, and industry groups ● Better utilize existing regional networks, including nonprofit Economic Development Organizations. ● Reduce duplication of efforts and improve information-sharing across agencies and partners
Increase Transparency and Outcome Reporting ● Publish clear annual metrics for publicly funded programs where feasible ● Link funding to measurable outcomes when appropriate ● Improve visibility into how existing programs, grants, and incentives are deployed and evaluated
Prioritize Workforce and Housing Solutions ● Support housing development in rural employment centers ● Explore policies tailored to seasonal and agricultural workforce needs ● Strengthen partnerships among workforce agencies, employers, and regional organizations to improve access to training and employment pathways
Strengthen Marketing and Branding Alignment ● Develop a clearer statewide narrative for Oregon’s food, beverage, and agricultural sectors ● Encourage collaboration across regions, industries, and marketing organizations. Just as the Regional Solutions Department has historically served a coordinating role across agencies, consideration could be given to a similar statewide coordinating function within Business Oregon, with representation from regional visitor associations and industry partners, structured in a way that reflects economic impact and regional contributions. Use this pathway to more effectively disseminate information about available opportunities, programs, and incentives to business owners. ● Improve coordination among agencies and partners involved in tourism, agriculture, and regional marketing efforts
Improve Regulatory Predictability and Problem-Solving ● Provide clearer guidance early in permitting and regulatory processes ● Improve consistency across counties and agencies where possible ● Continue exploring ways to strengthen interagency coordination to help resolve complex permitting or infrastructure challenges affecting businesses ● Emphasize practical problem-solving and continuous improvement in regulatory processes, particularly where multiple agencies are involved
Concluding Observation A theme repeated in many conversations was that Oregon’s economic challenges are not due to a lack of assets or talent, but to fragmentation, rising costs, and difficulty translating plans into coordinated action. Stakeholders across industries expressed appreciation for many existing programs and institutions, while also noting that outcomes may be improved through stronger alignment and execution. The opportunity ahead may lie less in creating new programs and more in strengthening: ● Alignment ● Clarity ● Accountability ● Execution Pillar Administrative Actions 2027 Legislative Structural Challenges (Short-Term) Proposals (2–5 Years) (Medium-Term) Business Executive orders on Tax structure Land-use reform; Climate permitting timelines; adjustments; incentive zoning flexibility; agency coordination; expansion; R&D long-term tax regulatory clarity credits modernization Workforce Workforce training Investment in training Education-to-employm alignment; credential pipelines; incentives for ent alignment; regional portability; agency skilled worker talent ecosystems streamlining attraction Tools for Inventory and optimize Scaled incentive Long-term funding Growth existing programs; faster programs; capital models; innovation deployment of grants access for mid-sized infrastructure firms Business Climate Workforce Tools for Growth Administrative Improve interagency Improve alignment Inventory and Actions (Short-Term) coordination and between workforce improve coordination communication. programs and of existing grants, industry needs loans, and incentive

Provide clearer Streamline access to programs permitting guidance training and and timelines workforce resources Accelerate deployment timelines Improve consistency Strengthen for funding programs in regulatory coordination among where feasible interpretation across workforce agencies, jurisdictions employers, regional Improve partners and communication of Better utilize regional universities. funding opportunities Economic to businesses Development Improve Organizations dissemination of Strengthen (EDOs) to connect information about partnerships with businesses with training and regional Economic programs and workforce support Development incentives. programs Organizations, DMOs, and Explore universities reprioritization of the Regional Solutions Department for the above. Improve visibility and accessibility of existing grants, loans, and technical assistance via Business Oregon. Involve representation of different EDOs and DMOs within Business Oregon. 2027 Legislative Review tax Invest in workforce Proposals thresholds and training pipelines Expand access to (Medium-Term) structures affecting aligned with key capital and financing small and mid-sized industries and tools, particularly for businesses universities. mid-sized firms Expand or refine Support employer-led Support regional incentive programs to training, innovation initiatives support business apprenticeships, and and applied research expansion and credentialing partnerships investment programs. Consider scaled Support research, Explore incentives to incentive programs

development, and attract and retain that support business applied innovation workers in rural expansion and partnerships communities modernization Consider policies that improve regulatory predictability for business development Structural Challenges Improve long-term Expand housing Develop more stable, (2-5 Years) clarity and availability in rural long-term funding predictability in employment centers models for economic land-use and and prioritize development permitting processes permitting. programs. while maintaining farmland protections. Strengthen Strengthen education-to-employ innovation Invest in core ment pathways and infrastructure and infrastructure (water, regional talent applied research wastewater, pipelines. partnerships. transportation, utilities) needed to Address long-term Prioritize support economic workforce infrastructure and growth, particularly in participation programs that key sector areas. challenges, including support business transportation, expansion and job Modernize economic childcare, and creation. development demographic shifts. incentives and improve coordination across agencies and regions.

Parent: Appendix E: Submissions & Feedback · PDF: pp. 173-184