<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
<HTML xmlns:o = "urn:schemas-microsoft-com:office:office" xmlns:st1 =
"urn:schemas-microsoft-com:office:smarttags"><HEAD>
<META http-equiv=Content-Type content="text/html; charset=us-ascii">
<META content="MSHTML 6.00.2900.5726" name=GENERATOR></HEAD>
<BODY>
<DIV><FONT face=Arial size=2>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><B
style="mso-bidi-font-weight: normal"><FONT face="Times New Roman" size=3><SPAN
class=055572617-30032009>Oregon Department of Forestry</SPAN></FONT></B></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><B
style="mso-bidi-font-weight: normal"><FONT face="Times New Roman" size=3><SPAN
class=055572617-30032009>NEWS RELEASE</SPAN></FONT></B></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><B
style="mso-bidi-font-weight: normal"><FONT size=3><FONT
face="Times New Roman"></FONT></FONT></B> </P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><B
style="mso-bidi-font-weight: normal"><FONT size=3><FONT
face="Times New Roman">Forestry Department seeks buyer for former tree seedling
nursery<o:p></o:p></FONT></FONT></B></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT face="Times New Roman"
size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>March 30, 2009</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>Contact: Kevin Weeks (503) 945-7427 or Robert McKee (503) 945-7503 [ODF]
and Jody Tatone, RE/MAX Professional Realty (541) 430-5430</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT face="Times New Roman"
size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>The Oregon Department of Forestry (ODF) is seeking potential buyers for
the state’s former tree seedling nursery located near Elkton.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT face="Times New Roman"
size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>The 113-acre former <st1:PlaceName w:st="on">D.L.</st1:PlaceName>
<st1:PlaceName w:st="on">Phipps</st1:PlaceName> <st1:PlaceType
w:st="on">Forest</st1:PlaceType> Nursery property in <st1:place
w:st="on"><st1:PlaceName w:st="on">Douglas</st1:PlaceName> <st1:PlaceName
w:st="on">County</st1:PlaceName></st1:place> includes 87 acres of irrigated land
and several buildings, including the nursery’s 36,000-square-foot
production/office/cold storage building. The property is listed at a selling
price of $2 million.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT face="Times New Roman"
size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>“This is a great opportunity for an agricultural or forestry business to
expand,” said Robert McKee, Facilities Manager for ODF. “There are many
infrastructure aspects already in place, and the history of the Phipps facility
demonstrates it is capable of generating several million seedlings per
season.”</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT face="Times New Roman"
size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>ODF has contracted with RE/MAX Professional Realty of Roseburg to market
the property. Inquiries about the Phipps Nursery may be directed to broker Jody
Tatone at (541) 430-5430.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT face="Times New Roman"
size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>The property is irrigated from the adjacent <st1:place
w:st="on"><st1:PlaceName w:st="on">Umpqua</st1:PlaceName> <st1:PlaceType
w:st="on">River</st1:PlaceType></st1:place> with additional water irrigation
rights from Galesburg Reservoir. </FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT face="Times New Roman"
size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>The nursery was opened in 1957 to provide <st1:place w:st="on"><st1:State
w:st="on">Oregon</st1:State></st1:place> forest landowners with an on-demand
source for tree seedlings. At its peak, the nursery produced 16 million tree
seedlings per year. Over several decades, sales at the Phipps nursery diminished
due to changing market conditions, reduced timber harvest on federal lands and
increased seedling availability from private-sector nursery sources. The Oregon
Board of Forestry in 2006 directed ODF to pursue sale of the nursery. The
nursery closed at the conclusion of the two-year seedling growing season in
April 2008. </FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT face="Times New Roman"
size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>As required under state rules, ODF first sought to transfer the property
under a public auction process in January 2008. Proposals received during that
process did not meet minimum bid specifications. ODF also made efforts during
the spring and summer of 2008 to negotiate a sale of the property. Once those
options had been exhausted, ODF could then pursue selling the property through
the commercial real estate market.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT face="Times New Roman"
size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>Additional information about the property offering is available from
RE/MAX Professional Realty including listing information available on the
company’s web site, </FONT><A href="http://www.professionalrealty.com/"><FONT
face="Times New Roman" size=3>www.professionalrealty.com</FONT></A><FONT
face="Times New Roman" size=3> – The Phipps property is listed under MLS number
9000926.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt">
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT
face="Times New Roman"><SPAN
style="FONT-SIZE: 13pt; mso-bidi-font-size: 12.0pt"><o:p></o:p></SPAN></FONT></P><o:p><FONT
face="Times New Roman" size=3><FONT face=Arial
size=2></FONT> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>Replanting trees is a crucial part of <st1:State w:st="on"><st1:place
w:st="on">Oregon</st1:place></st1:State>’s forest strategy. The Oregon Forest
Practices Act requires replanting trees following timber harvest. According to
the Oregon Forest Resources Institute, almost 40 million tree seedlings are
planted in <st1:place w:st="on"><st1:State
w:st="on">Oregon</st1:State></st1:place> each year.</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT face="Times New Roman"
size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>Additional information about the Oregon Department of Forestry is
available on ODF’s web site, </FONT><A href="http://www.oregon.gov/ODF"><FONT
face="Times New Roman" size=3>www.oregon.gov/ODF</FONT></A><FONT
face="Times New Roman" size=3> </FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><o:p><FONT face="Times New Roman"
size=3> </FONT></o:p></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3>###</FONT></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><FONT face="Times New Roman"
size=3></FONT> </P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
class=055572617-30032009><FONT face="Times New Roman" size=3>Kevin
Weeks</FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
class=055572617-30032009><FONT face="Times New Roman" size=3>Public Information
Officer / Private Forests Division </FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
class=055572617-30032009><FONT face="Times New Roman" size=3>ODF Agency
Affairs </FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
class=055572617-30032009><FONT face="Times New Roman" size=3><A
href="mailto:kweeks@odf.state.or.us">kweeks@odf.state.or.us</A></FONT></SPAN></P>
<P class=MsoNormal style="MARGIN: 0in 0in 0pt"><SPAN
class=055572617-30032009><FONT face="Times New Roman" size=3>(503)
945-7427</FONT></SPAN></P></FONT></DIV></BODY></HTML>