With proposed sale to Farwest Steel Corp., Port of Vancouver clears the way for badly-needed jobs.
In a deal potentially creating as many as 225 jobs for a still-sluggish regional economy, the Port of Vancouver announced plans May 18 to sell up to 22 acres of its property to Farwest Steel Corp. for a proposed centralized processing, distributing and fabricating facility.
The decision by Farwest to relocate 100 jobs and create 125 others was hailed last week by the likes of Gov. Christine Gregoire (D-Wash.), Port of Vancouver executive director Larry Paulson and Columbia River Economic Development Council president Bart Phillips as the best sign yet of Southwest Washington's improving economic prospects.
This week however, brought the hard work of finalizing the details between Farwest and the Port. "This is not your typical real estate transaction," said Curtis Shuck, director of economic development at the Port of Vancouver and a participant in the ongoing negotiations between the Port and Farwest.
Among the details to be worked out was construction of a rail spur to the property, stormwater arrangements and access to the property located adjacent to Lower River Road in Vancouver, according to Shuck.
Despite the obstacles, it seemed by VBJ's press time that momentum was building behind the deal. "Farwest is extremely serious. This is something they've been planning for a long period of time," Shuck said.
According to the Port of Vancouver, the proposed sale price for the 22-acre parcel is just over $5 million, with Farwest planning to spend $20 to $30 million in build-out costs for the site, which is set to generate $343,000 in taxes annually.
Through a broker, Farwest first contacted the Port regarding the property at least six months ago, Paulson said. "They were looking for a site where they could centralize their operations," he said. "And we fit the bill."
In a press release, Farwest president and CEO Patrick Eagen cited the site's readiness for construction and river, road and rail access for their choice in location. Founded in 1956, the steel distributing and manufacturing company currently operates facilities in five states, including Washington, Idaho and Oregon.
If an agreement is reached and the three-member Board of Commissioners approves, the land deal would represent a rare move in a regional Port system long used to acquiring, not selling, property.
And according to Paulson, the potential Farwest sale might not be the last for the Port. Across Lower River Road from the proposed Farwest plant is an even-bigger Port-owned property – a 108-acre parcel that Paulson says he hopes will be used for industrial purposes. The Port has been in talks with several firms regarding a possible sale or lease of the property, according to Paulson.
Despite the increased activity, Paulson denied the beginnings of a broad-based sell off of the Port's property holdings. "Given the benefits in terms of good-paying jobs and increased economic activity, it was the right time to make a deal," Paulson said of the proposed Farwest sale. "It's not the start of a trend."
The Port's Board of Commissioners will hold a public hearing on Tuesday, June 8 at the Port's administrative offices to consider the option to surplus the land in question – a necessary step so that the sale to Farwest can proceed.
Reached by the VBJ last week, CREDC's Phillips said as many as 900 jobs could be directly and indirectly created by the Farwest plant. Coming the same week as preliminary data showing a drop in Clark County's unemployment rate from 14.6 percent to 13.7 percent in April, news of the potential sale to Farwest seemed another example of a long-moribund job market finally turning around – at least in the region's manufacturing sector.
"It appears this is going to be a manufacturing-led recovery," Phillips said. "And this deal just confirms that."
