Vancouver Business Journal: Year in review

The following are excerpts from newspaper articles printed in the last year.

January
Vancouver/Portland ports team up to draw container traffic
The Port of Vancouver USA is positioning to grow by helping neighboring Port of Portland grab its share of Asian import traffic away from the congested ports of Southern California.

Although Vancouver’s port terminals don’t serve container lines, port officials hope beefing up declining container business to the region will attract developments for the land-rich Vancouver port to serve containers unloading in Portland. The neighboring ports solidified their joint efforts with a signed marketing agreement late last year. It targets, in part, shippers who want to avoid Southern California’s water, road and rail traffic jams.

Regional businesses respond to Asian tsunami
Owner Jenna Eckert scotch-taped a message near the front door of her Vancouver gift shop, Mint Tea Moroccan Imports in Uptown Village, encouraging customers to support victims of last month’s Asian tsunami.

The gesture was one among many around Clark County, as businesses and organizations mobilized to help people half a world away with immediate and long-term needs after a devastating earthquake and tsunami wiped out communities on the Indonesian island of Sumatra; Sri Lanka; along India’s southeast coast, and India’s Andaman and Nicobar Islands; and ravaged the coasts of Thailand, Maldives, Malaysia, Burma, Bangladesh and Somalia.

Pulled job stunts job creation at Port
News that a major opportunity for local steel manufacturers has all but evaporated was disappointing for the Port of Vancouver and the region, said Larry Paulson, port executive director.

"But it happened for reasons that were out of our control," Paulson said, after reports surfaced indicating cost overages and design changes to an ongoing project to build and retrofit the East Span of the San Francisco-Oakland Bay Bridge would eliminate a possible project for local steel fabricators.

The port had announced last March that if a consortium of four local steel fabricating companies had won the $300 million subcontract bid, the work would have taken place on a 25-acre site at the port’s Terminal 4 and an additional 10 acres adjacent to the site. Port and City of Vancouver officials had said the work would create 300 new local jobs and generate $51.6 million in business revenues had the bid been won by Bay Bridge Fabricators LLC.

February
Bush includes $15M in 2006 budget for channel deepening
President Bush announced last week that he is including $15 million for the Columbia River Channel Improvement Project in his fiscal year 2006 budget request, marking the first budget request to recommend funds for deepening the channel from 40 to 43 feet.

Columbia River Channel Coalition is requesting $40 million for the project in the FY 2006 Energy and Water Appropriations bill. By appropriating $40 million in FY 2006 and $40 million more in FY 2007, the construction costs would be minimized and transportation cost-savings would be fully delivered to Northwest farmers and businesses by the end of 2007.

The Columbia River Channel Improvement Project was authorized by Congress in 1999 and will cost $150.5 million (adjusted for inflation) to construct.

Fourth Plain international district could pull focus from downtown
Now that efforts to drive real estate in the downtown area are paying off, city officials and other investors are turning their attention to a budding international district along Fourth Plain Boulevard from Fort Vancouver way to Andresen Boulevard.

Vancouver City Councilor Pat Jollota is the district’s biggest proponent. She said her attention initially was drawn to the area by complaints from English-speaking residents about the increasing number of foreign speakers in the area.

"Rather than see the problems get worse, why not make this kind of cultural diversity a positive thing," Jollota said. "Tourist and shopper dollars coming in could change a lot of people’s minds."

April
Four more years
Despite higher-than-national-average unemployment rates in Clark County and Washington State, some area employers must search far and wide for qualified candidates. The problem: The jobs are here, but qualified candidates are not. The solution, some say, is a four-year university in Southwest Washington.

With overriding support from lawmakers, and possibly funding, Washington State University Vancouver could become a four-year university and enroll freshmen and sophomores as
early as fall 2006.

"There are not enough people graduating with the proper training," said WSU Vancouver Chancellor Hal Dengerink. "It is especially acute here."

WSU Vancouver’s expansion to a four-year university would not only benefit existing employers, but also companies considering doing business here.

Businesses weather increasing fuel costs
With the rising cost of fuel impacting the entire supply chain, businesses are finding it more difficult to keep their bottom lines from declining. Early in the month, AAA reported the average price of regular gasoline in Vancouver was $2.22 per gallon, versus $2.27 statewide and a national average of $2.17. Even more alarming was the price of diesel fuel, heavily relied upon to truck materials and goods. The average price of diesel fuel in Vancouver and statewide was $2.61 and $2.62, respectively, much higher than the national average of $2.31. According to Janet Ray, spokesperson for AAA Washington, West Coast prices are traditionally higher because of its limited refineries and pipelines.Parade of homebuyers
Washougal, which lays claim to the "Gateway to the Gorge," has been Clark County’s gateway to new residential development in the past few years.

In 2004, Washougal had 338 single-family-housing permits issued, up from 273 in 2003, 197 in 2002, 119 in 2001 and only 41 in 2000.

"It’s a regional land-supply issue," said Matt Lewis, government affairs director for the Building Industry Association of Clark County. " As land closer to Vancouver is built-out and consumed, these outlying communities that were distant before don’t seem too far away."

May
Business head tax takes a dive
A proposal by a Vancouver finance working group to implement a $7.50-per-employee monthly fee for city businesses appears to be short lived. Greater Vancouver Chamber of Commerce president and CEO John McKibbin reported significant resistance to the proposal announced last month.

"I don’t think its going to happen," said McKibbin. "It is very punitive, much like a Business and Occupation tax."

Businesses expressed concern that the fee hinders growth by punishing employee expansion and contradicts the city’s "open for business" campaign. The group said the slogan is a broad statement that needs to be more clearly defined.

The proposed fee was part of a tax package aimed at raising about $15 million per year to fund transportation and public safety. The fee would contribute approximately $6.1 million, an increase in the sales tax from 7.7 percent to 7.9 percent would contribute $5.1 million and a voter-approved property tax increase would add $3.5 million.

Port approves, delays tax
Port of Vancouver commissioners delayed by a year doubling port taxes collected from property owners within its district, yielding to concern over the haste of the process.

The port had recommended the commission approve a six-year industrial development district levy by June 1 to begin collecting 45 cents per $1,000 of assessed property value within the port’s development district. The tax would be in addition to the port’s existing 44-cents-per-1,000 valuation. The tax would generate $60.1 million to help develop more than 500 acres of the port’s Columbia Gateway property. The port has initiated an aggressive plan to bring tenants and jobs to the largest portion of industrial property in the region by 2010, at an estimated cost of as much as $230 million.

While port commissioners Nancy Baker and Arch Miller seemed poised to approve the resolution at its May 24

June
Parker Cann steps into top job at Columbia
From his fifth floor corner office in Vancouver’s Murdock Building, Parker Cann overlooks a downtown and, on a clear day, a region that has seen tremendous change and growth. As the new president and CEO of Columbia Credit Union, he is at the top of an organization that has witnessed a good deal of change itself

Following the departure of David Doss in December 2004 and a subsequent national search, Cann, 53, began work at Columbia on May 31. Previously, he was COO at Arrowhead Credit Union in San Bernardino, Calif. since 2002. Prior to that, Cann was the director of the Washington State Department of Financial Institutions’ Division of Credit Unions.

July
Medical buildings drive top projects
It goes without saying that the construction industry in Clark County is healthy, and it may be safe to say that medical construction in the county is in the prime of its life. Three of the top five entries for the Vancouver Business Journal’s 2005 Top Projects are medical related. Of all the entries received, seven projects were healthcare related and have a combined construction cost of more than $180 million.

What goes up must come down – or does it?
Compared to a year ago, the number of homes for sale in Clark County continues to decline, prices are still rising and it takes less time to sell a home. If the market continues at this pace, developers and investors stand to benefit. But experts warn that a correction in home prices may be lurking on the horizon. While most local experts agree that the increasing cost of buying a home is not sustainable, it is not clear when and how prices will level off, or if there is a possibility of a collapse.

August
County blocks development in Salmon Creek
Clark County slammed the brakes on development in Salmon Creek, because while building in the area was in the fast lane, traffic was not.

The county commissioners established a moratorium on new development in Salmon Creek where 134th Street and I-5 and I-205 converge, as traffic flow in the area has fallen below county standards. County planners have not approved development applications since February, when a de facto moratorium was imposed. Applications are no longer being accepted.

Legacy staffs hospital
Legacy Salmon Creek Hospital will open its doors at 7 a.m. on Aug. 15. And while the $275 million facility gradually began to rise from the dirt the past two years, an entirely different undertaking was happening behind the scenes.

Legacy Health System began the hiring process for the hospital’s nearly 700 employees.

"The process of hiring and training the staff has gone amazingly well," said Salmon Creek Administrator Jonathan Avery. "We were faced with a fairly tight timeline to bring on 700 people." More than 26,000 applications from across the country began piling in as soon as positions were posted.

Buses mean business
On Sept. 20 voters will be asked to increase the sales tax by 0.2 percent to preserve and restore bus service in the county. If the measure, which adds two cents to a $10 purchase, does not pass by a simple majority, a service reduction plan would go into affect on Sept. 25. The plan would restrict C-Tran bus service to the Vancouver urban boundary, limit service to weekdays and result in the firing of 150 C-Tran employees.

The county’s republican and democratic parties have endorsed the measure and a coalition of lawmakers, citizens and business leaders have formed The Committee to Save C-Tran, including state Sen. Craig Pridemore, reps. Jim Moeller and Bill Fromhold, CEO of Holland Inc. Tom Mears and Mike Worthy, president and CEO of Bank of Clark County. As a "public infrastructure that needs to be supported," Worthy said a reliable transportation system is crucial to attracting businesses to Clark County.

September
Local businesses answer call for help in South
More than 2,000 miles separate Southwest Washington from the southern coastal states battered by Hurricane Katrina. And the images and stories transmitted from the site of the disaster make it seem worlds away. But local individuals, businesses and organizations are making a point to contribute to relief efforts in the affected region.

According to the local chapter of the American Red Cross, more than $30,000 in donations had been collected in Clark County as of Tuesday morning.

Indoor Vancouver Farmers Market claims local HQ
Vendors of the Vancouver Farmers Market have taken a huge step forward by selling their wares indoors and on weekdays.

The indoor market opened its doors for the first time on Sept. 17, complementing the outdoor market open on Saturdays and Sundays April through October.

Market Executive Director Aaron Flies said the anticipation of the opening of the indoor market drew 15,000 to 18,000 visitors on Saturday and 10,000 to 12,000 on Sunday.

Flies expects the indoor market to be running at full capacity by Nov. 1 at the latest. He said there will be 17 to 20 permanent vendors operating in spaces ranging in size from 100 square feet to 360 square feet. Lease rates are between $700 and $2,100.

October
In youth, opportunity; in age, wisdom
In 1972, Bob Bernhardt was a young real estate agent with the desire to grow dramatically the established Whitfield Brothers Real Estate firm he had become a partner in. Today, the tables have turned, and Coldwell Banker Commercial Bob Bernhardt Associates agent Michael Jenkins is looking to expand the business Bernhardt has built in the past 30 years.

"As companies grow and as leadership ages," said Bernhardt, "it takes new ideas and new enthusiasm, and that’s what Mike provides."

Bernhardt remains the designated broker, but ownership of the company is equally split. Additionally, the name of the company will change to Coldwell Banker Commercial Jenkins-Bernhardt Associates. Bernhardt, 68, said he sees in Jenkins, 36, the same desires he had at that age.

In the business of gambling
It’s a gamble when it comes to predicting the impact a large tribal gaming facility would have on the local economy and business community. Some say the casino proposed near La Center could detract from surrounding businesses, while others could benefit from partnering with the tribe or providing services to the casino’s employees and customers.

While much of the opposition is centered on the tribe’s historical connection to the area and the social impacts of gambling, it also could mean win or lose for many Southwest Washington businesses.

November
Races you watched
At press time, Democrat Steve Stuart was the front runner of the County Commissioner race for District No. 3. Stuart, whose background is primarily in land use planning, was appointed to the commission last year. All incumbents for city of Vancouver mayor and council races were reelected, Mayor Royce Pollard leading by a margin of more than 26 points on Tuesday night. Attorney Brain Wolfe took Port of Vancouver Commission Position No. 3 with a margin of more than 20 points. Voters expanded smoking prohibitions by amending the Clean Air Act, and at press time, Initiative 912, repealing the statewide gas tax, had been voted down by less than half a percentage point.

Energy prices pinch businesses
With dropping mercury levels in the winter comes rising energy bills for Northwest businesses, and increased fuel costs will chill power customers even more this year.

The rising cost of natural gas, exasperated by this year’s disastrous hurricane season, has led to price hikes from utilities across the state. Nearly 20 percent of the nation’s electricity is generated by burning natural gas, and more than one third of U.S. industrial and manufacturing plants use natural gas to make products.

Clark Public Utilities produces nearly half of its power supply at its natural-gas-burning River Road Generating Plant. The other half is purchased from the Bonneville Power Administration. According to the utility, the River Road plant produced energy at a lower cost than the BPA when it came online in 1997, but rising gas prices have changed that. As a result, CPU’s three-member commission unanimously voted to raise rates to businesses 2.1 percent to cover a $16 million shortfall.

Waiting for the smoke to clear
Clark County businesses are grappling in unique ways with the impending statewide smoking ban – effective Dec. 8. One tavern’s regulars are trying to quit, and another plans to build an enclosed patio. Some say there will be relatively little effect while some expect whole niches of businesses to be financially devastated by the new law.

But, it’s still too early to tell what really is going to happen. Bart Phillips, president of the Columbia River Economic Development Council, downplays the effect of the smoking ban across the Clark County economy.

"People have opinions, not facts," said Phillips. "I don’t think it will have any impact whatsoever – it will just be different."

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