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66 °F Forecast | Road Cams Monday, April 12, 2004 Today's News | Classifieds | Autos | Homes | Jobs | Tempo | Health | Community | Home Delivery SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics AP News Weather Classified Archives Site Map EXTRA Newspaper in Education Personals Movie Times TV Times E The People CLASSIFIEDS Find a Car Find a Home Find a Job Find a Rental Place an ad eSouthernOregon Automotive Communities Entertainment Publications Recreation Calendar CUSTOMER SERVICE Frequent Questions Advertising Information Home Delivery Employment Contact Us Media Kit Network Affiliate Email Story to a Friend April 1, 2004 States battle for organic food firm Oregon’s Kulongoski and California’s Schwarzenegger are in a tug-of-war over Amy’s Kitchen By DAMIAN MANN Mail Tribune Oregon Gov. Ted Kulongoski and California Gov. Arnold Schwarzenegger have found themselves in an economic tug of war over an organic food company that might move to Medford and create several hundred jobs. Kulongoski sent a letter last year to Andy and Rachel Berliner, owners of Amy’s Kitchen in Santa Rosa, Calif., urging them to come to Oregon and save almost $4 million in workers’ compensation claims, utility charges and taxes. The governor has also contacted company executives by phone touting the benefits of his state. According to Andy Berliner, Kulongoski said, "‘It’s a great state for an organic food company.’" Schwarzenegger recently made a personal call to the Berliners promising to lessen the burden of workers’ compensation claims, which can be up to 70 percent cheaper for some workers in Oregon. Advertisement According to the Los Angeles Times, Schwarzenegger said during the phone call, "Berliner, huh?" Then, in German, he delivered President Kennedy’s famous line during a speech in Berlin, "Ich bin ein Berliner." The Berliners don’t mind the attention from both governors — Kulongoski had even planned to pay them a visit but scheduling problems forced him to cancel. "It’s a good feeling," said Andy Berliner. "It’s nice to be wanted." He said a representative from Harry and David’s even came down to help promote the Medford area. Amy’s will give Schwarzenegger until November to see if he is able to push a cheaper workers’ compensation package through the California Legislature, said Berliner. The company would pay $2.4 million less by moving to Medford. Schwarzenegger also promised that if the Legislature doesn’t do anything, he would promote a ballot initiative in November to bring about workers’ compensation reform. However, Berliner said the 750-employee company also had other considerations that make Medford a good option to relocate the more energy-intensive portions of their business. "Initially we would start out with about a few hundred workers and gradually grow from there," he said. The cost per kilowatt-hour in Medford is less than one-third of Santa Rosa’s, which would save $1 million annually, according to Berliner. No sales tax would save an estimated $225,000 and state income taxes another $148,000. The company, which now has a 107,000-square-foot facility, produces everything from frozen foods to soups and pasta sauces. Amy’s, named after the couple’s daughter, generates annual revenue of $100 million and has doubled the number of employees in the last five years. It has tried to limit growth to 25 percent a year. Berliner, who noted his company looked at other areas to relocate, also liked the fact that Medford was fairly close to Santa Rosa. But he and his wife, who live in Petaluma, Calif., have no intention of moving to Oregon, said Berliner. Scott Ballo, communications manager for the Oregon Economic and Community Development Department, said Kulongoski has taken an active interest in attracting companies like Amy’s to Oregon. "He’s definitely been involved in any number of recruitment and retention efforts," he said. State regional development officer Bruce Laird said it is not that unusual for this governor to take a personal interest in job creation. However, in California that has been unusual, he said. "This is the new way of doing business," said Laird. "For the first time in the known history, California has a governor that is personally involved in this." Reach reporter Damian Mann at 776-4476, or e-mail [email protected] Mail Tribune Home Local News | Sports | Business | Obituaries | Life Opinion - Politics | AP News | Archives | Site Map E Southern Oregon | Classified Copyright © 1997-2004 Mail Tribune. All rights reserved. Privacy Policy | Terms & Conditions Website Feedback 3 WEEKS FREE! ADVERTISERS A D V E R T I S E R S RESOURCES Oregon Road Conditions & Cams SPECIAL SECTIONS Auto Finder Job Finder Home Finder Joy Magazine Homelife Magazine Tempo Readers' Choice Real Estate Showcase Since We Asked Food for Thought Wellness Connection Outdoor Journal Moving to Southern Oregon? Volunteer Opportunities Prime Times