In a special meeting earlier this week, port commissioners approved a trio of agreements to keep the port’s Terminal 5 on track to becoming a potash facility owned and operated by Australia-based BHP Billiton.

The first agreement, according to port officials, is an exclusivity contract where BHP Billiton pays to keep Terminal 5 off of the open market. A second agreement grants BHP site access for engineering and design work, and a third agreement allows the port to move forward with site improvements.

“These agreements basically allow us to move forward with the things that are necessary in order for BHP to start construction on a facility as soon as we have a ground lease in place because they want to be up and operational by 2015,” explained Theresa Wagner, communications manager at the Port of Vancouver.

Wagner said the port hopes to have a ground lease with BHP Billiton finalized by November. The company would then start construction on a facility immediately after that.

Curtis Shuck, director of economic development and facilities at the port, said this agreement with BHP is unique because as soon as the company takes possession of the property, “they don’t want the port anywhere near them.”

“They want complete control of their site because safety and security is absolutely a critical element for BHP Billiton, and so we have drafted this agreement to be respectful of that,” he stated.

Shuck said the site improvements at Terminal 5 include a proportional sharing of costs between the port and the mining company. Improvements will cover four main areas: rail, road, utility and site.

Rail improvements

The main portion of rail improvements at Terminal 5 will be to construct a track that’s exclusive to BHP Billiton.

As Shuck explained it, Terminal 5’s rail loop was originally designed to handle typical, modern day 120-car unit, 7,500-foot trains. But as the port developed the project with BHP Billiton, the company revealed the need to run 170-car unit trains that are more than 8,400 feet in length.

“As you can imagine we had to get our track structure out and go to work on expanding the loop. We’re essentially redesigning the facility to be able to handle those longer trains,” said Shuck.

Road improvements

As the port modifies the rail at Terminal 5, Shuck said the access roadway system will need to be modified as well. Because BHP’s facility will be located within the active train loop, Shuck said the port will install an exclusive rail crossing for the company. Another project will add a new overpass that lands within the loop.

Utilities

As it does with any tenant, Shuck said the port will work to supply water and sewer to the edge of BHP’s lease site. In addition, the port will construct a new $5 million electrical substation to support the company’s demand to power its facility.

“We are currently working with Clark Public Utilities on a deal to develop a substation that will not only support the BHP Billiton project, but will also support additional development at the port and additional things that Clark County is doing,” said Shuck, adding that BHP will have a proportional share of that cost as well.

Site works

The final improvement element regarding the BHP site, according to Shuck, essentially covers things like fencing.

When asked if the complexity of the project and the number of site improvements have been difficult for the port to take on, Shuck said it’s really just about getting done on a fairly fast-paced schedule in order to get out of BHP’s way.

“These types of projects don’t get done in a vacuum by a couple of people around a table in a smoky room – it takes everybody,” said Shuck. “This is a really good example of our partnership with the city of Vancouver and the other regulatory agencies. We wouldn’t be where we’re at today without those people standing side by side with us, and I really think BHP Billiton recognized that as being a significant strength of this particular site when they were doing their selections early on.”

Days after reporting a loss in its most recent quarterly report, Riverview Community Bank executives said the bank is financially strong.

On Tuesday, the company reported a net loss of $16.6 million, or $0.74 per share, in its third fiscal quarter ended December 31, 2011.

“This is a big number – a $16 million hit for the quarter. But there are a couple of stories behind it,” said Ron Wysaske, Riverview president and CEO. “First and foremost, the bank is sound, has plenty of cash and plenty of liquidity.”

As Wysaske explained it, Riverview’s financial results were impacted by an increase in the provision for loan losses of $8.1 million as well as the establishment of an $8.7 million deferred tax asset valuation allowance.

In the case of the loan losses, Wysaske said the primary culprit is land loans that have been negatively impacted by diminished local real estate prices.

“One of our taglines is ‘Riverview: reflecting our community’s strengths.’ Well, it turns out that we reflect our community’s weaknesses to, and we are doing that primarily with land loans,” he said.

Meanwhile, Riverview’s establishment of a deferred tax asset valuation allowance represents a non-cash accounting entry that may be reversed in future periods if, among other considerations, the company returns to sustained profitability. Reversals of this allowance would then increase Riverview’s net income in future periods.

“The point is once we get back to profitability, and we fully expect that to happen soon, we will be able to take that 8.7 million back,” said Wysaske, adding that the bank remains classified as well-capitalized, which is a critical point, he said.

“We’ve got in excess of $80 million of cash on hand and we have over $400 – almost $500 million of available liquidity from typical sources for banks… So we’re in a great position from a liquidity standpoint,” he said.

Expanding on Wysaske’s point, Riverview Executive Vice President Kim Capeloto pointed to the fact that the bank would have posted a gain before loan loss provisions and the deferred tax asset revision.

“It is important that people understand we’re not going anywhere,” said Capeloto. “We are extremely well-capitalized. Our core business is very strong. Our deposits are up, our customer accounts are up; we’re building a brand new branch in Gresham.”

Compared to its third fiscal quarter ended December 31, 2010, Riverview’s deposit accounts increased from $696,749 to $735,046. Loans receivable also grew from $660,075 to $678,626.

As an institution that’s deeply rooted in the local community, Capeloto said Riverview followed its philosophy and worked with borrowers over the years on a case-by-case basis, as opposed to simply opting for wholesale cuts using federal dollars to flush away problem loans, like many banks did early on in the recession.

“You didn’t have a whole bunch of instances where Riverview was in the headlines for massive losses due to this type of stuff, and most of that is because of the way we’ve managed through the process,” said Capeloto. “Unfortunately, at this particular time, it’s just where we are in the economy. It hasn’t turned around as fast as we all would have liked to see it turn around, and as a result we have to recognize evaluations as they are today.”

 “We’ll keep making the good fight,” added Wysaske. “We’ve got the tools to do it; we’ve got the cash to do it. We’re not going to change our philosophy because I think it is right for a community bank to do what we’ve been doing.”

The Vancouver office of established Pacific Northwest law firm Miller Nash LLP has seen several changes in the last few months, expanding in some areas of expertise and contracting in others, shifting to meet the economic and legal needs of Southwest Washington.

Names no longer found inside the firm’s 500 East Broadway Street office include Steve Horentstein, who recently opened his own small firm with wife and fellow attorney Cindy Horenstein, and James Howsley, who has joined the Vancouver legal office of Jordan Ramis PC.

Miller Nash’s Vancouver office now consists of eight attorneys, two paralegals and nine other staff, serving in a variety of legal arenas, including land use, real estate, business, litigation, employment, environmental and tax law.

“We are branching out beyond our traditional focus on real estate and development,” said LeAnne Bremer, partner in charge of the Miller Nash Vancouver office. “Those areas were down, not surprisingly, but we are seeing new calls for commercial real estate transactions in January. A good sign, we hope.”

Though Miller Nash has long been known locally for land use and environment law, Bremer stressed, “We do much more than that. Our business team and our tax people are seeing steady business.”

Steady is the word Bremer used when discussing business for area law firms in general for the coming year.

“The feeling is that this year will be a lot like last year for law firms, not really growing, but not shrinking either; Maybe a slight uptick, but not dramatic,” she said.

Miller Nash currently has 116 lawyers in offices in Portland, Central Oregon, Seattle and Vancouver.

“The attorneys in the Vancouver office are able to tap into the expertise of other attorneys in the firm,” said Bremer. “This is especially helpful when new proposed legislation like the recently tabled SOPA and PIPA arise that could significantly impact business.”

More than ever, Bremer said she and her fellow Miller Nash Vancouver attorneys are strongly committed to community involvement, and hoping to become even more involved in 2012. In January alone, the office worked nearly 450 pro bono hours, valued at more than $130,000.

Bremer herself serves as a member of the board of directors of the Humane Society for Southwest Washington. Firm partner Joe Vance serves on the Ridgefield School Board, while partner Steve Hill is an officer on the board of the Foundation for Vancouver Public Schools. Dustin Klinger, also a partner, is on the board of the YWCA of Clark County, while also providing monthly time at the SERVE Homeless Legal Clinic. Associate Kathryn Smith gives time to multiple organizations, including Educational Opportunities for Children and Families, and the YWCA’s Domestic Violence Legal Clinic. Associate Meghan Williams, newly hired in December, 2011, assists with pro bono work for the Boys and Girls Club of Southwest Washington.

In an effort to increase the amount of tourism dollars spent in Clark County, officials have created a new sports commission that will serve as a catalyst for attracting and promoting local sports events and tournaments.

The commission was formed earlier this week with a vote by the Board of Directors of the Vancouver USA Regional Tourism Office. The newly-formed Vancouver USA Regional Sports Commission will serve as a special advisory committee to the board.

“In our work with sports planners and tournament directors, it has become clear that an expanded local network of sports-related industry professionals can help us grow this market larger and take it to the next level in terms of marketing our destination for sporting events,” said Kim Bennett, president and CEO of the Vancouver USA Regional Tourism Office, in an email to the Vancouver Business Journal.

As the region’s sports facilities, parks and natural venues become better known by event and tournament organizers, Bennett said the number of visitors will increase – visitors who spend money in our community on everything from lodging to meals to shopping to fueling their car.   

“This, in turn, supports jobs in our community and increases sales tax that is used by our local government to pay for roads and services such as police and fire,” she said.

The primary goals and objectives of the sports commission include coordinating resources in the community to increase and enhance the success of sports events and tournaments; providing education and information to the general public on the benefits of investing in sports competitions and venues; and providing a forum for the continued recognition of sports as a positive force in improving the quality of life in the Clark County area.

The sports commission will be comprised of 20 to 30 individuals from across Clark County. SpringHill Suites by Marriott General Manager Alison Hite is one of them.

“I don’t think people realize the economic impact tourism has,” said Hite. “It’s huge to our area – not only to our hotels, but for restaurants, shopping and everything.”

In recent years, according to Hite, sports commissions have become part of the bidding process for tournaments and events because “you have to get a little more detailed in going
after them.”

“If you want to bid on events, usually a sports commission has to start that process and put in an official bid,” she said. “That’s what we’ve been missing in Clark County.”

In addition to Bennett and Hite, initial members of the Vancouver USA Regional Sports Commission include Brian McClary (Heathman Lodge); Charles Guthrie (Clark College), Peter Mayer (Vancouver-Clark County Parks and Recreation); and Dave Sobolik (Fit Right Northwest).

The initial members of the sports commission are expected to meet in February. Parties interested in serving on the commission are encouraged to contact the Vancouver USA Regional Sports Commission at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .