By ED MERRIMAN

Baker City Herald

Editor’s note: This is the first of a series detailing how one local bank is helping new and existing businesses retain and add jobs in Baker County by tapping into government-backed loan programs for rural communities.

When Ted and Jodie Hausotter came up with the idea for building made-to-order water slides, they had no intention of moving their Natural Structures business to Baker City.

But now that they’re here, business is booming.

andquot;We passed Baker City up the first time through. We thought the labor market would be too thin,andquot; Ted Hausotter said.

One day while the couple were fishing at Brownlee Reservoir, they stopped by a local business and the owner suggested they contact Bob Shepard and Jennifer Watkins at the Baker City Community Development Department.

The Hausotters had just about made up their minds to go to Prineville, but Shepard and Watkins debunked their labor concerns and convinced them to relocate Natural Structures from Sherwood (south of Portland) to Baker City five years ago.

Ted Hausotter said the business has been growing and adding jobs ever since, thanks in part to a staff that works hard to produce quality water slides and components andquot;that customers want, when they want it.andquot;

He also credits Jeremy Gilpin at Community Bank in Baker City for putting together government-backed loans designed specifically to assist rural businesses.

andquot;When we moved to Baker City in 2003, we had 13 employees. Since then we have expanded twice,andquot; Hausotter said. andquot;We now employ between 50 and 60 people, and sales of our product are coming in so fast we’re already planning another expansion.andquot;

As of March 31, the company’s sales of molded plastic water slides, flumes, ladders and accessories exceeded the company’s entire first year’s sales. The firm’s first quarter 2008 sales were up 47 percent over the fourth quarter of 2007, he said.

andquot;We are growing by leaps and bounds,andquot; Hausotter said. andquot;I’m constantly hiring, so I don’t have to fire anyone.

andquot;Our clients are very happy with the products we are providing. At this point we do have lots of orders stacked up, and more keep coming in,andquot; he said.

When asked about the genesis of their water slide manufacturing business, Hausotter said he and his wife were at a swimming pool years ago and they noticed there was not a lot to do other than swim or hit a ball around.

andquot;Swimming pools are pretty void of fun activities. We saw a need, and came up with the ideaandquot; of building made-to-order plastic waters slides available with bends, loops and other fun accessories, he said.

Last month, the Northeastern Oregon Economic Development District announced Natural Structures had been approved for another guaranteed loan, bringing the total to $350,000. Ted Hausotter said the company will use the money to buy a Rotomolder machine, used to manufacture flumes for the company’s water slides andquot;in-houseandquot; instead of contracting out that portion of the manufacturing process.

A Rotomolder machine is a key component in manufacturing plastic flumes or chutes for the Natural Structures water slides. Chunks of plastic are placed in the Rotomolder, which heats the plastic and spins it until it forms round shapes like large pipes, which are then cooled and cut to fit specific water slide projects.

Hausotter said doing that work at the Baker City plant will add jobs and consolidate operations, giving the company more control over delivery schedules to customers.

With orders continuing to pour in, Hausotter said he expects growth to continue and he’s installing additional equipment and planning two more expansions to handle it.

andquot;We are already full to the last expansion,andquot; Hausotter said. andquot;Right now we are putting new jib booms in the new building to make the manufacturing process more efficient,andquot; and an expansion of the original gray building plus the construction of a third building are in the planning stages.

At the same time, he said, crews are racing to install completed slides before the summer swimming season kicks off Memorial Day weekend.

Natural Structures is one of nine Baker County businesses that saved jobs or added jobs in part with $1.2 million in government-backed loans for rural business acquisitions, expansions or relocations processed over the past 18 months, with Gilpin’s help, through the Northeastern Oregon Economic Development District and/or the USDA’s lending programs for rural businesses.

andquot;Jeremy was very helpful. He does a nice job. He comes up with suggestions to keep my lendability high,andquot; Hausotter said.

When Natural Structures outgrew its original building in Baker City, the former Sandamp;R Industries plant, Hausotter said Gilpin recommended Natural Structures apply for government-backed loans available through the bank and Northeastern Oregon Economic Development District to fund construction of a second building.

andquot;One of the reasons I was brought to Community Bank in Baker County was because of my experience in economic development-type loans,andquot; Gilpin said.

He said government-backed economic development loans meet a need in rural communities for business loans that don’t fit the standard lending criteria followed by most commercial banks

andquot;The typical loans we deal with in rural communities are for good projects that provide jobs and good economic benefits to the community, but very few fit in the standard loan box,andquot; Gilpin said.

When those types of loans come through Community Bank, Gilpin looks them over for potential eligibility for government-backed loans available through the NEOEDD and the USDA.

andquot;We’ve helped businesses save some jobs, and we’ve helped businesses create new jobs through these types of loans,andquot; Gilpin said. andquot;One of the criteria is the number of jobs saved or additional jobs created.andquot;

andquot;We’re moving forward and upward,andquot; Hausotter said, adding that the growing customer list for Natural Structures water slides includes numerous community municipal swimming pools across the country that have found that adding slides, flumes and chutes makes swimming more fun and boosts attendance and revenues.

The company has also installed water slides and accessories at celebrity mansions, at the vacation homes of the owners of professional sports teams, and at vacation resorts and hotel pools.

andquot;These are not cookie-cutter slides. They are specially designed for each site,andquot; he said.

In addition to the manufacturing crew, Hausotter said the company employs a sales staff of seven, who work with customers out of the Baker City sales office, make site visits and attend trade shows all over the country to promote the company’s products.

The company also builds shelters and pavilions, site furniture, as well as park, play and athletic equipment.

While Natural Structures is one of the biggest success stories among the nine businesses assisted with government-backed gap or guaranteed loans handled by Community Bank, Gilpin said they have all been successful.

One of the other government-backed loans help fund a local acquisition of a cabinet manufacturing business that was scheduled to move to Boise, according to Gilpin.

andquot;With the loan, we were able to keep the cabinet manufacturer here. That initially saved 23 jobs, and over the past year the company has added another shift, and has added even more jobs,andquot; Gilpin said.

He learned how to process loans through those types of programs while working at banks in Kansas and Missouri, and since he brought that experience to Baker County, Community Bank has become the No. 1 lender in the state of Oregon for USDA loans.

andquot;USDA is not just farming,andquot; Gilpin said. andquot;All of the USDA business and industry loans in Oregon last year came out of Community Bank in Baker County, and we were No. 15 in the nation, by volume.andquot;

Many of the packages he puts together include funds available through the Oregon Business Development Fund, the USDA Intermediate Rural lending Program and the Rural Lending Fund.

Other Loan Recipients

andquot;This is a neat program. We don’t do 100 percent financing, but we fill the gap between what the borrower needs and what the bank will loan,andquot; said Greg Smith, loan officer with Northeastern Oregon Economic Development District.

Smith said area businesses receiving government-backed gap loans or guaranteed loans over the past 18 months include West Slope Enterprises, $100,000 and $250,000 for Natural Structures for new building, equipment and expansion of water slide manufacturing facilities; Eastern Oregon Entertainment, $200,000 for locals to purchase the Eltrym Theatre and keep it open; Stout Investments, $50,000 for remodeling at Elkhorn Lanes bowing alley; Trail Enterprises, $100,000 for remodeling and expansion at Oregon Trail Motel and Restaurant; Jay Rafferty, $75,000 to purchase Main Events sports bar; Randamp;D Holding, $75,000 for business expansion at Gentry Ford; Oregon Power Solutions, $51,000 to develop technical assistance and consulting business to help landowners putting up wind turbines; Naughty Craving Body Taffy, $56,000 to expand body lotions business.