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Elesco Limited Newsletter

1^st Quarter – 2008

2007 was the best year ever for Elesco Limited. Major projects were completed in Oregon, Washington and Idaho while others were started in the Northwest and in Nevada.

Port of Chehalis Industrial Park Market Analysis

Elesco provided market analysis to assess development suitability of an additional 250 acres in the Chehalis Industrial Park in Washington as part of a master plan managed by Specht Development, Inc. Elesco examined development trends along the I-5 Corridor from the Kent Valley south to Vancouver and projected absorption rates for alternative uses of warehousing versus manufacturing. Recommendations for pricing policies were made to assure the Port’s competitive position in its market.

Port of Shelton – Sanderson Field Aviation & Industrial Park Marketing Strategies

Elesco assessed opportunities for the Port of Shelton to recruit new aviation-oriented and non-aviation businesses to Sanderson Field in Mason County, Washington. Following detailed market analysis of patterns and trends of business growth in the Puget Sound region, Elesco recommended sets of specific types of businesses to target and provided lists of companies by NAICS codes for the marketing campaign. Elesco also provided examples of marketing materials to implement the strategies.

Elesco contracted with the Mitchell Nelson Group, a land planning firm, to provide conceptual site development plans and identify capital improvement needs.

Elesco provided market and economic analysis to assess opportunities to generate new revenues and employment from vacant sites at this general aviation airport. Elesco’s work supported a master plan being developed by W&H Pacific, Inc. Analysis of the Puget Sound aviation market identified suitable types of businesses to recruit to the airport, while general business patterns and trends were assessed to target non-aviation businesses. A cash flow analysis projected potential revenues that Pierce County could generate from development of the vacant properties.

Elesco provided analysis of commercial development opportunities at the Wildhorse Casino and Resort near Pendleton, Oregon, for the Confederated Tribes of the Umatilla Indian Reservation. A second contract with the Confederated Tribes of the Coos, Lower Umpqua, and Siuslaw Indians evaluated alternative locations in Coos Bay and Florence for development of a native-themed retail mall. A project for the Quinault Indian Nation on the Olympic Coast analyzed market potential and economic feasibility for a museum and cultural center.

Elesco continued to manage the 325-acre La Pine Industrial Park in 2007 and oversaw the development of a 30-acre expansion that created 17 new lots in the size range of 1 – 3 acres each. The total cost of $1.2 million was fully paid out of revenues from lot sales in the Newberry Business Park area of the industrial park, leaving enough money in the bank to fund operations and launch an aggressive marketing campaign. Another 28 acres were optioned for development of a biomass electric generating plant in La Pine.

One of Elesco’s largest carry-over projects is the assessment of 60-square miles of land in Western Nevada for development potentials. Under contract to the Bureau of Indian Affairs, the project covers about 300 Indian-owned allotments that were created as far back as 1887. The area southeast of Minden and Gardnerville is experiencing rapid growth that is trending toward the Pine Nut Mountains area and influencing development opportunities. Elesco’s part of the project entails evaluating residential and commercial potentials for each allotment, along with developing lease structures suitable for encouraging development while protecting the interests of the Indian owners.

Elesco has also begun a contract with the City of Hermiston to develop a financial impact model for a proposed Eastern Oregon Higher Education Center that will combine resources of Eastern Oregon University and Blue Mountain Community College. The project will show the return on investment that can be expected by analyzing direct, secondary and indirect financial impacts of the facility.

Elesco has also contracted with the Shoalwater Bay Indian Tribe on the Washington Coast to evaluate development potential for various commercial facilities. The site is 20 miles west of Raymond in Pacific County, so developing commercial facilities locally will save the time and cost of traveling out of the area, along with capturing the substantial tourism business that visits that part of the Coast. Major emphasis is being placed on creating jobs for Tribal members and bringing in new revenues to the community.