The document summarizes key findings from a visit to Hillsboro, Oregon from April 28 - May 2, 2007. It describes how Hillsboro transformed from an agricultural town to a high-tech hub led by Intel's chip fabrication facilities starting in 1976. Unlike other cities, Hillsboro planned for growth to avoid sprawl and enhance quality of life. The visit showed how Hillsboro has a strong tech sector while preserving agriculture, and how tech companies have impacted local schools and a community college.

1. Intercity Visit
Hillsboro Oregon
Key Findings – What did we see and
learn from April 28 – May 2, 2007

2. Why Hillsboro?
• City grew from 7,500 people in 1950’s to 85,000
people in 2007.
• Hillsboro’s economic transformation from forest-
agricultural products to high technology was led
by Intel chip fabrication facilities starting in 1976.
• Unlike Austin, TX and Phoenix, AZ, where other
chip fab’s were built, Hillsboro planned for growth
to avoid sprawl and to enhance their high quality
of life.
• Hillsboro proves that a strong tech sector and
vibrant agricultural economy can thrive side-by-
side.
• Opportunity to see how tech companies have
impacted local schools and a local community
college.
• Not looking to become Hillsboro, just to see best
practices in one model community.

3. Transformation to Silicon Forest didn’t
happen overnight
• 1950’s developed regional water system to
attract food processing plants and help local
agricultural economy.
• Water system designed for 50 million
gallons per day expandable to 80 mgpd
when only 3 million gallons per day were
needed.
• In the 1960’s, the community decided that it
DIDN’T want to become a bedroom
community of Portland.
• To achieve this VISION, the goal was to
have enough industry to provide jobs for 2
out of every 3 local residents.
• The region adopted its first comprehensive
land use plan in 1978 and created Metro in
1979 to administer regional planning.
• Land use plan sets aside 20-year supply of
land for manufacturing and preserves
farmland outside of their urban growth
boundary.

4. The Intel Effect
• Intel began looking at Hillsboro in
1974 and located it’s first chip fab
in 1976.
• Four Intel chip fab’s now in
Hillsboro and 16,000 employees.
• Attraction = cheap/flat land,
abundance of water, no
earthquakes, cheap power,
private aviation, and quality
schools.
• Other companies followed - -
mainly from CA and Japan.

5. What did we learn about Oregon…
• State does tax assessment for tech
related properties.
• Comprehensive land use plans and
zoning are mandatory by state law.
• State funds 65% of school district
budgets and caps local property taxes
for schools at $5 per $1,000 of
assessed valuation.
• In 1996, state law required consolidation
of local elementary school districts at
urging of Intel and other business/tax
advocates.
• State “Strategic Investment Program”
allows communities to cap assessments
on equipment within facilities to
encourage industrial growth.
• There is no sales tax. Officials note that
this promotes cooperation and prevents
competition for retail between local
communities.

6. What did we see and learn about Hillsboro?
• Fewer layers of government –
City, County, Metro and State.
• One School District with 32
schools and 20,000 students.
• Regional water project was
key to growth even though it
was built for different industry.
• Region embraced vision to
NOT be a suburb of Portland
and to create their own
regional economy.
• The region has adopted a 50-
year land use plan.

7. What else did we see and learn?
• Cooperative spirit embraced by:
– Government at the local, county and
regional level AND by both the paid
professional managers and elected officials
– Business/Industry via the regional chamber
of commerce
– Education at both the K-12 and community
college level
• We saw high tech companies and farmland
thriving in the same community and within
minutes of each other by car.
• Yearly town hall meetings held to celebrate
and evaluate progress toward 50-year plan.
• Collaborative vision with professional
support and elected officials who listen to
these individuals.
• Hillsboro does NOT have a tourism
industry.

8. What else did we see and learn?
• Regulation orientation but only to the
extent of being able to plan and
problem solve.
• Hillsboro Planning Department: “I
have been here 27 years and we all
are hired with the understanding that
our job is to facilitate…not regulate.”
• The Chamber and City spent 18
months working on a new
comprehensive sign code to balance
competing interest.
One delegate noted:
• Systems put in place to support “Although I felt
collaboration and “movement” on key collaboration was their
projects.
primary key to success,
• Wages have increased throughout the
I presume their belief
region’s economy. is that planning was
the key.”

9. What else did we see and learn?
• Creating one community is a catch
phrase used by School Superintendent
Jeremy Lyon in talking about how they’ve
successfully integrated minority students
from a range of cultures.
• Embrace “people differences” with new
members of the community considered a
resource.
• Many opportunities for women in the
region’s workforce, particularly in the
technology and engineering fields.
• 25% of the population is Latino with a
significant migrant farm worker segment
that needs local services.
• Hillsboro Library reading program offered
in 15 languages.

10. What else…
• 37% of Hillsboro’s population
has a bachelors degree or
higher versus 27% in NY.
• High tech employees tend to
be highly educated and have
very high expectations for their
own children’s education.
• Intel’s impact and logos seen
throughout local schools K-12
and community college.
• Portland Community College,
in Hillsboro, has both a micro-
electronics program supported
by Intel AND a working farm to
support local agriculture.

11. What did we see and learn…
• Hillsboro is the last stop on a light
rail system that connects with
Portland to the East.
• Hillsboro is targeting properties
along light rail stops for planned
multi-use development including;
residential, retail and manufacturing.
• Hillsboro’s airport provides service to
corporate jets with US customs on
call to process International
travelers.
• Company CEO’s mentioned one
major economic challenge - -
increasing congestion and time for
people and goods to travel to
Portland International Airport.

12. What do you think?
• From this presentation, what did you see or hear that is
of most interest to you and your organization?
• We’re there any topics raised in this presentation that
you think we should act on as a community/region?
• In your option having seen this presentation, what are
the lessons our community/region needs to take from
this visitation?
• If we were to meet with you again 12 months from now,
what could we have accomplished by then to convince
you that the time we spent today was valuable?