Rud Browne - Whatcom County

From: Forrest LongmanTo: CouncilCc: Rud BrowneSubject: FW: additional Comp Plan documentsDate: Monday, May 23, 2016 2:39:49 PMAttachments: 2015-CEDS-Approved.pdf

Commerce-ADO-2014.pdfRCW 82.14.370_ Sales and use tax for public facilities in rural counties (marked).pdf

Hi Jennifer, can you add this to the record and the website.

Thanks.Forrest

From: Rud Browne Sent: Friday, May 20, 2016 7:06 PMTo: Forrest LongmanSubject: additional Comp Plan documents Please post these reports to the Comp Plan website (Chapter 7) as well

RudRud BrowneCouncilmember - At-LargeWhatcom County Council311 Grand Ave. Suite 105Bellingham, WA 98225Phone: 360-820-9494Email: [email protected]: www.whatcomcounty.us/council/distatlargeprofile.jsp

NOTICE: All emails and attachments sent to and from Whatcom County are publicrecords and may be subject to disclosure pursuant to the Public Records Act (RCW 42.56)

Whatcom County

COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY

March 2015

Whatcom County

COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY

Jack Louws, Whatcom County Executive

Prepared for Whatcom County, Washington

by the Whatcom Council of Governments

Robert B. Bromley, Chairman

Robert H. Wilson, AICP, Executive Director

Accepted by the Whatcom County Council, March 31, 2015

Accepted by the U.S. Economic Development Administration, April 2015

TABLE OF CONTENTS Page i Whatcom County Council Resolution No. 2015-012 iii U.S. Economic Development Administration Approval Letter iv Acknowledgements 1 Introduction 7 Section 1: Regional Background 18 Section 2: Population and Labor Force 23 Section 3: The Whatcom Economy 35 Section 4: The Economic Development System 64 Section 5: Existing Plans 67 Section 6: Whatcom County’s Preferred Economic Future and Action Plan 78 Section 7: Metrics 2015 CEDS Project List (following Page 78)

LIST OF FIGURES 16 Figure 1: Map of Whatcom County 17 Figure 2: Whatcom County in the Cascade Region 23 Figure 3: Job Sectors 2012 23 Figure 4: Nonfarm Job Growth 24 Figure 5: Industry and Wage Transition 25 Figure 6: Wage Growth by Sector 26 Figure 7: Agriculture Operations 26 Figure 8: Agriculture Acreage 30 Figure 9: Taxable Retail Sales 31 Figure 10: Quarterly Sales Tax 32 Figure 11: Firm Size and Employment 34 Figure 12: Inflation-Adjusted Per Capita Income

LIST OF TABLES 18 Table 1: Population of Whatcom County and its Incorporated Cities 19 Table 2: Racial and Ethnic Composition of Whatcom County by Percentage of Population 20 Table 3: Whatcom County Population Forecast 21 Table 4: Labor Force Statistics 23 Table 5: Whatcom County Employment, 2012 24 Table 6: Employment Shares in 2012 28 Table 7: Manufacturing Rated by Growth 33 Table 8: Largest Employers, 2013 33 Table 9: Per Capita Personal Income 49 Table 10: Whatcom County Higher Education Participation Rates, Fall 2008 65 Table 11: Whatcom County Growth Management Plans 69 Table 12: Vision Statements and Action Items

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Acknowledgements

The Whatcom Council of Governments wishes to recognize and thank the following persons and organizations for their contributions in the development of this Comprehensive Economic Development Strategy (CEDS).

The members of the CEDS Steering Committee for their guidance and encouragement: Jeff Callender, Gay Dubigk, Rob Fix, Bill Gorman, Kathy Hiyane-Brown, Hart Hodges, Joe Hudspeth, Gary Jones, Tom Kenney, Jeff Kochman and Pinky Vargas.

The Northwest Economic Council, for convening the CEDS Steering Committee.

Whatcom County Executive Jack Louws and Mayors Kelli Linville (Bellingham), Harry Robinson (Blaine), John Perry (Everson), Gary Jensen (Ferndale), Scott Korthuis (Lynden), Jim Ackerman (Nooksack) and Bob Bromley (Sumas).

All the economic development service providers in Whatcom County that provided guidance on the regional economic development system and information on their organizations.

Sylvia Goodwin, Dodd Snodgrass and John Michener of the Port of Bellingham.

Matt Aamot of the Whatcom County Department of Planning and Development Services.

James McCafferty of Western Washington University’s Center for Economic and Business Research and student interns Kaylee Guetle, Anna Magidson, Karley Thurston and Jonathan Van Dyken.

This document was prepared by staff of the Whatcom Council of Governments (WCOG) at the request of, and under contract to, Whatcom County Government. The statements, conclusions and recommendations contained herein do not necessarily reflect those of the Board of WCOG, the individual members thereof or the jurisdictions and agencies constituting WCOG’s membership. The final draft of this document that was transmitted to the County Executive in February 2015 was intended to serve as a starting point for Whatcom County Government in its internal process of adopting a comprehensive economic development strategy and was subject to revision. In fact, it was accepted without revision by the Whatcom County Council on March 31, 2015. Questions regarding the preparation of this Comprehensive Economic Development Strategy may be directed to:

Whatcom Council of Governments Attn: Robert H. Wilson, Executive Director

314 East Champion Street Bellingham, Washington 98225

(360) 676-6974 [email protected]

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INTRODUCTION A. Overview As financial resources for economic development from all levels of government have become scarcer, the need for inter-local collaboration, coordination among the various economic development agencies, and careful prioritization of proposed projects has become essential. Recognizing the efficiencies that result from such a coordinated approach, the U.S. Economic Development Administration (EDA) and the State of Washington encourage local jurisdictions to work together to create regional economic development programs. This Comprehensive Economic Development Strategy (CEDS) is a plan for Whatcom County (also referred to as “the Region”), including its seven incorporated cities, to strengthen and sustain the regional economy. Its intent is to bring together the public and private sectors in the creation of an “economic roadmap” to diversify and strengthen the regional economy by integrating the Region’s human resources and its capital-improvements planning in the service of economic development. When economic development planning is integrated in this way it facilitates full utilization of the Region’s unique resources to maximize opportunity for its residents and businesses by attracting private investment that creates wealth, and with it, jobs. By implementing this CEDS, Whatcom County will build a strong foundation upon which sustainable economic growth can occur that will provide opportunities for businesses and workers while protecting the Region’s cherished natural resources, thereby enhancing the quality of life for the County’s 207,000 residents. While this CEDS technically replaces the Greater Whatcom Comprehensive Economic Development Strategy (“the 2002 CEDS”) that was adopted by the Whatcom County Council in August 2002, it is based largely on that document, and – for all intents and purposes – is a continuation of it. B. Purpose The principal purpose of this CEDS is to facilitate the retention and creation of living-wage jobs and to foster a stable and diversified regional economy, all for the intended outcome of maintaining and, ultimately, improving the quality of life in the Region. It is also a continuing program of communication and outreach that encourages local goal setting, public engagement and a commitment to cooperation among the different levels of government, the business community and the not-for-profit sector. Another important function of this CEDS is to inform Whatcom County’s Economic Development Investment (EDI) Program. In 1997, the Washington State Legislature authorized rural counties such as Whatcom to retain a portion of the sales tax collected in those counties to finance public facilities, with the goal of stimulating and supporting private-sector investment that will result in business growth and job creation. Local governments and other public-sector entities in Whatcom County can apply to the EDI Program for loans, grants or a combination of both to fund projects. Those requests are considered using a three-part process that begins with an application review by the Northwest Economic Council, then a review by and recommendation from the EDI Board, and then a final decision from the Whatcom County Council. Projects for which EDI funding is sought are more likely to be approved when they are included on the CEDS Project List, which is contained in the appendix

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to this document. That list will be updated annually through 2018 by the Whatcom Council of Governments and presented to the County Council for its review and adoption. This CEDS was prepared recognizing the economic development efforts of the communities that make up Whatcom County and the organizations that contribute to those efforts:

Whatcom County Government and the Region’s unincorporated communities

The cities of Bellingham, Blaine, Everson, Ferndale, Lynden, Nooksack and Sumas

The Lummi Nation and Nooksack Tribe

Local partner agencies directly involved in or supporting economic development, including o The Northwest Economic Council o The Region’s chambers of commerce o Trade associations that support local industries o The Port of Bellingham o Public Utility District No. 1 of Whatcom County o The Center for Economic and Business Research, Western Washington University o The Small Business Development Center, Western Washington University o Workforce Development Council o Bellingham Technical College o Northwest Indian College o Whatcom Community College o Others included and described in Section 4.

Many Whatcom communities have developed local economic development plans. This CEDS is not intended to either replace or supersede those plans; rather, it is drawn from them and attempts to “knit together” the disparate elements contained in each of them. The result is a CEDS that respects local needs and aspirations and incorporates them into an overarching regional approach to economic development. C. The Whatcom Council of Governments Under a contract with Whatcom County Government, the Whatcom Council of Governments (WCOG) is providing management, coordination and development of this CEDS. Established in 1966 by an act of the Washington State Legislature and operating pursuant to Chapter 36.64.080 of the Revised Code of Washington, WCOG provides a forum through which mutual cooperation is facilitated among its members, which include Whatcom County Government, the County’s seven cities, the Port of Bellingham and other regional entities. In January 2013, WCOG assumed administrative responsibility for the Northwest Economic Council (NWEC), a 501(c)(6) not-for-profit corporation founded in 1984 to bring together Whatcom County’s private, public and not-for-profit sectors to establish and foster a strategic approach to growing the County’s economy. Aligning itself with WCOG enabled NWEC to focus entirely on providing strategic direction and oversight to economic development and related activities throughout the County. The Steering Committee that oversaw the development of this CEDS was drawn principally from NWEC. The Steering Committee ensured that the following principles were applied in the development of this CEDS:

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The process should be inclusive, linking the various community, political and social sectors of the Region.

Whatcom County is a regional economic unit where inter-local cooperation is emphasized while respecting the autonomy of the Region’s seven incorporated cities.

The conditions that are conducive to business recruitment, retention and expansion are generally the same as those that contribute to the preservation and enhancement of community and environmental vitality, which is an important regional value.

D. Federal Requirements The U.S. Economic Development Administration (EDA), a division of the United States Department of Commerce, is the federal agency that oversees the CEDS process. Whatcom County is in EDA Region X, based in Seattle. It is important to note that neither Whatcom County nor WCOG received funding from EDA for the preparation of this CEDS. However, the 2002 CEDS on which this CEDS is based was prepared using EDA Planning Assistance funds, and it satisfied all of the EDA requirements attached to that funding source. The preparation of a CEDS by a county or group of counties is purely voluntary. However, only those with an approved CEDS are eligible to compete for EDA “investment assistance” (funding) under the Public Works and Economic Development Act of 1965 (PWEDA), as amended. Official approval of this CEDS by EDA is one of the prerequisites for designation as a “redevelopment area,” the step necessary to make Whatcom County eligible to compete for funding for public works and business development projects, which Congress has authorized to support economic development projects expected to create jobs and support diversification of the regional economy. Once a CEDS has received EDA approval, the completion and subsequent approval of an annual report continues the area’s eligibility for funding consideration under PWEDA. E. The Process The EDA provides guidelines for preparing a CEDS. Counties or districts formed for the purpose of regional planning must follow those guidelines in preparing their document. However, EDA also allows the flexibility for a CEDS to emphasize strategies or issues important to a region as long as the process and outcomes do not conflict with the guidelines. As stated earlier, the development of this CEDS was guided by the CEDS Steering Committee of the Northwest Economic Council. NWEC provides a mechanism for ongoing coordination between individuals, not-for-profit organizations, local governments, private industry and other parties concerned with economic development. While a report must be prepared annually to remain eligible to compete for EDA funding, a county is not mandated to do so if it does not plan to seek funds in any given year, or if it does not wish to have an overall economic development strategy. However, many states – including Washington – require counties to have an approved CEDS to make it eligible for certain state funding programs that support local economic development.

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F. Historical Perspective The predecessor to Whatcom County’s 2002 CEDS – known as the Overall Economic Development Program (OEDP) – was under the direction of WCOG since the creation of the program in 1966. Yearly updates to the OEDP were made until 1988, when they were terminated because of shifting priorities and limited resources within WCOG. No OEDP plans were prepared in 1989 or 1990. In 1991, the Fourth Corner Economic Development Group, in conjunction with WCOG, prepared an OEDP at the request of the City of Bellingham. That document was updated through 1993, after which updates ceased. In 1998, with the reauthorization of EDA by Congress, the OEDP was renamed the Comprehensive Economic Development Strategy. In 2000, the Port of Bellingham led the effort to expand economic development leadership to all of Whatcom County and to initiate a collaborative approach with other county agencies working on economic development and quality of life issues. The result of this initiative was the establishment of the “Partnership for a Sustainable Economy,” whose mission was to identify a vision for the County’s economic future and facilitate the collaboration among the Region’s various economic development entities to attain that vision. In 2001, Whatcom County and several local jurisdictions recognized the need to revisit the OEDP to consider present community and economic needs and bring the Region into compliance with current EDA standards. As a result, the Partnership was engaged by the County to oversee and manage the development of the 2002 CEDS. Although projects were continuously added to the 2002 CEDS in the decade following its adoption, in 2013 Whatcom County determined that the time had come to update the document, and in June of that year it engaged with WCOG to perform that service. The draft CEDS was subsequently transmitted to the County for its review and adoption in February 2015 and was unanimously accepted by the Whatcom County Council on March 31, 2015. The list of projects in this CEDS will be updated annually by WCOG through June 2019. G. Steering Committee Role Overseeing the preparation of the draft CEDS document was the responsibility of the Steering Committee. The members of the Steering Committee and their affiliations follow:

Jeff Callender, Phillips 66

Robert Fix, Port of Bellingham

Bill Gorman, Gorman Publicity

Kathi Hiyane-Brown, Whatcom Community College

Hart Hodges, Waycross Investments

Joe Hudspeth, All-American Marine

Gary Jones, Socco Forest Products

Tom Kenney, Washington Federal Bank

Jeff Kochman, Barkley Village

Pinky Vargas, Puget Sound Energy

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The Steering Committee and WCOG staff was assisted by a Technical Advisory Committee of Matt Aamot from Whatcom County, and Sylvia Goodwin, John Michener and Dodd Snodgrass of the Port of Bellingham. H. Adoption of the CEDS Upon completion of the draft CEDS by WCOG in February 2015, the following sequence of activities took (or will take) place:

1. Review of the draft CEDS by the Steering Committee with a subsequent recommendation to transmit it to Whatcom County.

2. Review by the Whatcom County Executive and his staff. 3. Transmittal of the draft CEDS by the Executive to the Whatcom County Council. 4. Review and acceptance by the Whatcom County Council. 5. Transmittal of the CEDS by Whatcom County to the EDA. 6. Other copies will be provided to various state and federal agencies involved in economic

development, in particular the Washington State Department of Commerce and the Region’s Congressional members.

7. The EDA Regional Office in Seattle reviewed the CEDS in the spring of 2015 and determined that it satisfied EDA’s requirements as a guide to local decision-making.

8. The approved CEDS will be provided to cities, economic development partner organizations, the general public and other interested organizations and individuals.

9. An annual “call for projects” will be made by WCOG to the County, the seven cities, the Port of Bellingham and other eligible public agencies for the purpose of updating the CEDS project list.

I. Expected Outcomes Strategic economic development is a process, and one for which a long-term commitment is necessary for it to be successful. The anticipated near-term benefits of this CEDS include the following:

It will provide a resource of information for communities, economic development service providers and businesses about the Whatcom County’s economy and development issues.

It will guide and justify funding decisions made under the Whatcom County Economic Development Investment Program.

Because EDA has approved this CEDS, the County and its incorporated cities are eligible to apply for investment assistance under EDA’s Public Works or Economic Adjustment Assistance programs if EDA determines that the Region is “distressed,” which is based on its unemployment rate and per capita income relative to the national averages for those indices. As of 2014, neither Whatcom County nor any of its cities were classified as distressed and they are unlikely to attain such designation in the foreseeable future.

The document can assist the County and its cities as they develop or update the economic development elements of their comprehensive plans.

The following long-term benefits are expected through implementation of the vision, goals and strategies presented in this CEDS:

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Better paying jobs will be created and retained.

A more stable, balanced and diversified regional economy will develop.

Natural resources will be used in a sustainable manner and protected for generations to come.

The Region’s highly valued quality of life will be maintained and living conditions will improve for residents.

An ongoing tool for economic development coordination, communication and information will be available.

Through a continuing program of communication and outreach that encourages partnership-building, public engagement and participation, most if not all of the goals identified in this CEDS can be achieved.

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SECTION 1: REGIONAL BACKGROUND

A. Economic History of Whatcom County The earliest inhabitants of present day Whatcom County were Native Americans, including the descendants of the Lummi, Nooksack, Samish and Semiahmoo tribes. These groups provided for themselves using the region’s abundance of fish, game, berries and root vegetables. A Spanish expedition in 1592, led by Juan de Fuca, is believed to have been the first time Europeans reached present-day Washington. Because of the region’s extreme isolation from the settled portions of the continent along the Atlantic seaboard, settlement on a significant scale did not occur until the mid-nineteenth century. Until then, the few Europeans in the region were mainly fur trappers, traders and missionaries. The discovery of gold and coal in the 1850s brought waves of fortune hunters to the Region. While few of these new arrivals found success in the gold fields, many more saw the great potential offered by the area’s vast natural resources, including its fertile soil, fisheries and vast stands of timber. In 1852, Henry Roeder and Russell Peabody, assisted by members of the Lummi tribe, built the first sawmill in the region, and the settlement that it spawned on Bellingham Bay was called “Whatcom.” Following the establishment of Whatcom, the towns of Bellingham and Sehome were established in 1853, and then in 1854, Fairhaven. This growth prompted the Washington Territorial Legislature to create Whatcom County out of the northern portion of Island County in 1854. When it was established the County comprised present-day San Juan and Skagit counties until the former was established by the Territorial Legislature in 1873, and the latter in 1883. Settlement expanded beyond the immediate vicinity of Bellingham Bay throughout the second half of the nineteenth century, although it was largely contained to the coastal plain and foothills of western Whatcom County. In 1890, the County’s first city – Blaine – was incorporated, followed the next year by the incorporation of the cities of Lynden and Sumas. Bellingham was incorporated in 1903 through the merger of the towns of Bellingham, Fairhaven and New Whatcom, the latter of which having been formed itself through the merger of the towns of Sehome and Whatcom. Four years later the City of Ferndale was incorporated, followed by Nooksack in 1912 and, finally, Everson in 1929. The County’s timber industry – aided by steam-powered logging trains – continued to expand well into the twentieth century and included more than 70 sawmills, 100 shingle mills and numerous logging camps. In fact, by 1907 the Bellingham Bay Lumber Company was one of the world’s largest sawmills. Despite the unsuccessful efforts of local leaders to make one of the towns on Bellingham Bay the terminus of the Northern Pacific Railroad and Fairhaven the western headquarters of the Great Northern Railway, by the 1880s Whatcom County was being served by the Bellingham Bay & British Columbia Railroad, and a few years later, the Fairhaven & Southern Railroad. Around the same time, fish processing became a major industry in the County. The first cannery was built in 1886 on Lummi Island, and by the turn of the twentieth century there were 12 canneries operating, employing more than 5,500 people. By 1905 – with the invention of the fish-canning machine – employment in the industry began a significant decline, which accelerated in the 1930s

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when certain highly-effective fish traps were banned. Still, during the 1940s, Fairhaven-based Pacific American Fisheries was the largest salmon canning company in the world. In the 1890s Whatcom County emerged as the center of education in northwest Washington. The first high school in the region was built in the town of Sehome in 1890, and three years later Governor John McGraw signed legislation creating the New Whatcom Normal School – known today as Western Washington University – which admitted its first official class in 1899. Bellingham Technical College was founded in 1957, followed by Whatcom Community College in 1970 and Northwest Indian College in 1973. From the 1950s to the 1970s, the manufacture of paper, chemicals, refined oil, aluminum and processed food helped diversify a manufacturing base that before was dominated almost entirely by wood products. During the 1980s and 1990s, more customized and technology-based industries such as instrument production, industrial machinery and equipment, plastics and electronics established themselves in the County. While Whatcom County still has a significant manufacturing sector, manufacturing employment decreased by 23 percent from 2000 to 2012, and manufacturing wages as a share of total wages in the County fell by 20 percent over that same period, although these declines are consistent with trends in Washington and the U.S. as a whole. The largest employment gain since 2000 has come from the “service” sector of the regional economy. Forty-two (42) percent of employment and 36 percent of wages came from this sector in 2012, compared to 26 and 21 percent, respectively, in 2000. The “government” sector also increased its relative share of both employment and wages over this same period, although with more modest gains. Conversely, the remaining six sectors (manufacturing, retail trade, construction and mining, wholesale trade, transportation, and finance) declined from 2000 to 2012.

B. Geography Whatcom County is located in the extreme northwest corner of Washington and, by extension, the continental United States. The total area of the County is 2,503 square miles, with 2,107 square miles of land area (3.2 percent of the State’s land mass). Among Washington’s 39 counties, Whatcom ranks twelfth in area. Skagit and Okanogan counties border the County to the south and east, respectively. Its northern boundary is the international border with Canada in the province of British Columbia. To the west the County is bounded by both the Strait of Georgia and Rosario Strait. The former lays off the County’s northern shoreline, separating it from several islands in B.C., most notably Vancouver Island. Rosario Strait separates the County’s southern shoreline from parts of Island and San Juan counties. Both of these straits are part of the Salish Sea. Three islands in the Strait of Georgia – Lummi, Portage and Eliza – are part of Whatcom County, and there is regular ferry service between Lummi and the mainland. Point Roberts, the southern tip of the Tsawwassen peninsula, is a highly unusual geographic feature of Whatcom County known as a pene-exclave: land area of one nation that is accessible only by traveling through that of another. Point Roberts can only be reached from the rest of the County, and vice versa, via two border crossings and a 23-mile drive through the Lower Mainland of B.C.

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The topography of the county is varied. Once covered with virgin timber, the terrain in the western third of the County is now lush rolling hills, interspersed with areas of level terrain. The elevation of the terrain increases as it extends east toward the foothills of the Cascades. The terrain in the County’s eastern two-thirds is among the most rugged in the continental United States. Most of this area is under federal jurisdiction and includes the Mount Baker-Snoqualmie National Forest, North Cascades National Park and the Mount Baker and Ross Lake National Recreation Areas. The highest elevations in the County are in the eastern portion, including Mount Baker (10,781 feet above sea level), Mount Shuksan (9,127 feet) Mount Redoubt (8,956 feet), Jack Mountain (8,928 feet) Mount Challenger (8,236 feet), and American Border Peak (8,026 feet). The Nooksack is the principal river in Whatcom County. Originating high in the Cascades, the North Fork of the Nooksack flows westerly through the County before emptying into Bellingham Bay. During its course, waters from the Middle and South Forks join the river. There are also several large lakes in Whatcom County including Ross Lake, Baker Lake, Lake Whatcom and Lake Samish.

C. Environment The mountains of Whatcom County, as well as its streams, lakes, valleys and hills, are the result of millions of years of geologic events. More than 2.5-million years ago during the Ice Age, glacial ice invaded the Puget Sound lowlands from the north at least four times, retreating most recently only about 11,000 years ago. One of the principal glacial advances that occurred in the area – the Vashon Glaciation – dammed up the Puget lowlands to form a huge lake. Out of these long physical processes, a complex natural ecology has emerged that supports a diversity of wildlife. Many of the lakes, rivers and streams support fish. Every year salmon return to spawn in the streams and rivers of Whatcom County. Bufflehead and Golden-Eye ducks winter here. Additionally, canvasbacks, cormorants, grebes, loons and other migrating waterfowl pass through every spring and fall as they travel between their breeding grounds in Alaska and Canada and their wintering grounds in California and Mexico. Mallards, Canadian geese, great blue herons and numerous songbirds live in the County year-round. Maintaining these unique resources will present a challenge for both present and future County residents. Development in the last 100 years has had a significant impact on the natural environment in Whatcom County. At the turn of the century the areas surrounding Lynden, Sumas and Ferndale were logged, drained and converted to agricultural land. In the intervening years, many of the remaining forests were logged, many streams re-routed and channelized, and much of the native vegetation removed and replaced with a wide variety of introduced vegetative types. Roads now traverse most areas, with homes, farms, businesses and industry scattered throughout the County.

1. Natural Hazards

The geology, geographic position, climate and certain economic activities combine to create various natural hazards in Whatcom County, including the following: Landslides: The geologically-recent retreat of glaciers from the Whatcom County landscape has left many hillsides over-steepened and susceptible to naturally occurring landslides and earth

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movements. As a result of the disastrous Oso landslide in northern Snohomish County in March 2014, it is anticipated that greater monitoring of potential landslide hazards will occur in the future. Alluvial Fans: Alluvial fan hazards are areas where steep mountain streams flow onto floodplains or into lakes and deposit debris and sediment. Because these streams are steep and flow in confined canyons, they can carry more sediment and debris than a similar-sized stream flowing over flat land. Volcanic Activity: Mount Baker is an active, glaciated, andesitic stratovolcano in the Cascade Volcanic Arc, with its peak 10,781 feet above sea level. It has the second-most thermally active crater in the Cascade Range after Mount Saint Helens and is the second-most glaciated after Mount Rainier. Research indicates that Mount Baker has not experienced highly explosive eruptions like that of Mount Saint Helens over the last 14,000 years. Earthquakes: Whatcom County lies within the influence of a major earthquake fault area off the coast of western North America (Cascadia subduction zone). This zone has the potential for generating magnitude 8.0 or greater earthquakes every 500-600 years. Mining: Coal mining was a major industry into the twentieth century in many parts of Whatcom County. Abandoned underground shafts, adits and mine tailings are potentially hazardous to human safety and the environment. Flooding: Heavy winter rains, combined with the steep and sometimes unstable slopes of Whatcom County's foothills, create conditions ideal for flooding and debris flows along many rivers and streams. The Nooksack River floodplain alone covers 38,000 acres in Whatcom County. Following severe floods in 1989 and 1990, Whatcom County created a countywide Flood Control Zone District, encompassing all jurisdictions within its boundaries. The primary purpose of the District is flood hazard management. In November 1999 the Lower Nooksack River Comprehensive Flood Hazard Management Plan was adopted and is the guiding document for future programs along the river and template for hazard programs around the County. Whatcom County participates in the Federal Emergency Management Administration National Flood Insurance Program. In addition, it coordinates with the U.S. Coast Guard, Port of Bellingham, U.S. Border Patrol and other agencies on emergency response and security issues that affect the county.

2. Water Resources

Whatcom County has 16 major freshwater lakes, 3,012 miles of rivers and streams, over 37,000 acres of wetlands, 134 miles of marine shoreline, and aquifers containing an undetermined amount of groundwater. They provide natural beauty, recreation, habitats for fish and wildlife, water for drinking, agriculture and industry, and other benefits essential to the quality of life and economic health of the community. Surface water sources such as Lake Whatcom and the Nooksack River provide water to about half the county residents with the remainder relying on groundwater either from individual wells or from about 415 public water systems. Agriculture relies on both ground and surface water for irrigation, livestock, and facility wash down. Businesses and industries may also require water, sometimes in substantial quantities, for non-potable as well as potable supplies. Water is also essential to meet many of what are referred to as "in-stream" uses such as for recreation, shellfish growth and harvest, habitats for fish and wildlife, aesthetics and other benefits.

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The 1998 Washington State Watershed Management Act established a process and funding for participating local governments to address water quantity, water quality, instream flows, and fish habitat issues within the State’s 62 Water Resource Inventory Areas (WRIAs). Most of Whatcom County falls within WRIA 1, based in Nooksack. The WRIA 1 Watershed Management Plan, Phase I (2005) and the Detailed Implementation Plan (2007) were developed through the cooperation of local stakeholders and governments and provide a roadmap for addressing the aforementioned water-related issues within the region.

3. Natural Systems

Whatcom County provides a wide variety of natural habitats, which support and shelter a diverse array of fish and wildlife species as well as diverse vegetation. The County's wildlife is particularly varied and abundant when compared to many other areas of Washington. There are a number of factors that have contributed to this: abundant water resources, rich soils, the mild climate and the existence of significant tracts of open space among the most important. Among the habitats of importance to fish and wildlife are the following:

Wetlands, lakes and streams

Estuaries and marine habitats including kelp and eelgrass beds

Riparian areas and other travel corridors

Snags and downed logs

Forested habitats in a variety of successional stages

Caves, cliffs, and talus slopes

Grasslands and cultivated fields

Thickets and fence rows Aquatic habitats include rivers, streams, ponds, lakes and their riparian borders. Together, these habitats are essential to Whatcom County's fish and wildlife. Twenty-six species of fish, including twelve economically important stocks of salmon and trout, inhabit fresh water in Whatcom County for all or part of their life cycles. Healthy flowing streams and rivers, as well as off-channel wetland habitats, are essential to the survival of the majority of these fish. Wetland ponds, especially beaver ponds, provide optimal habitats for rearing and over-wintering of young fish, particularly Coho salmon and Cutthroat trout juveniles. Most regional wildlife species regularly use aquatic and riparian habitats for breeding, feeding, shelter and migratory activities. Of this large grouping, over half are dependent upon wetland habitats at some point in their life cycles, and would decline or disappear in their absence. Wetlands also contain unique vegetative communities that harbor many species of rare and unusual plants. Marine habitats include all saltwater bodies and their shorelines, kelp beds, eelgrass meadows, salt marshes, beaches, and mudflats. These habitats play a vital role in the health of the local environment as well as of the broader Puget Sound region. They provide spawning, rearing, and feeding grounds for a wide variety of marine life as well as refuge for juvenile and adult fish, birds, and shellfish. The vegetation on backshore marshes and within estuaries buffers adjacent upland areas by absorbing wave energy and slowing erosion.

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Threatened and endangered species: In 1999, the National Marine Fisheries Service listed Puget Sound Chinook salmon as a threatened species under the federal Endangered Species Act. The same year, the U.S. Fish and Wildlife Service listed coastal Puget Sound bull trout as threatened. Subsequently, both have been redesignated to the more serious “endangered” listing. These fish are present in the waters of Whatcom County, primarily the Nooksack River and its tributaries. The strategy for recovering salmon in the Nooksack River Basin is outlined in the June 2005 WRIA 1 Salmonid Recovery Plan and is built on scientific data collected over several decades. It explains the factors inhibiting salmon populations and describes strategies and actions needed to facilitate their recovery. Although the strategy applies to all indigenous species of salmonids, a particular emphasis is placed on Chinook salmon recovery.

D. Natural Resources The growth and harvest of farm products, regeneration and harvesting of timber, and excavation of minerals all shape Whatcom County's landscape and strongly influence the economy. Resource lands, which include agriculture, forestry, and mineral resource lands, also largely represent Whatcom County's cultural heritage. These natural resource activities have been major industries since settlement began in the area. The Growth Management Act requires that counties “maintain and enhance natural resource based industries, including productive timber, agricultural, and fisheries industries. Encourage the conservation of productive forest lands and productive agricultural lands, and discourage incompatible uses" (RCW 36.70A.020). This is relevant to economic development because it ensures that natural resources be managed for future economic use through sustainable practices.

1. Agricultural Lands

Productive agricultural lands are an important resource to the people of Whatcom County and the State, yet these parcels are often targeted for conversion to other, more intensive uses, including residential and commercial development. The conversion process often begins to accelerate when non-agricultural uses start to encroach on agricultural land, creating smaller parcels, more buildings, and activities that, in some cases, are incompatible with agriculture. This can result in a blurring of the lines that distinguish agricultural from other uses, setting the stage for further conversion of the diminishing agricultural land base in Whatcom County. Even “agricultural” parcels that are not well-suited to the actual production of crops often of value in support of the more productive parcels – such as for building sites, windbreaks, specialty crops, etc. – or for uses unrelated to raising crops, including livestock wintering or foresting. Retaining land for these ancillary but essential functions should also be considered when determining the amount of land that must be protected to ensure the long-term stability of Whatcom County’s agricultural resource. In 1949, roughly 200,000 acres of land were reported to be in farm production in Whatcom County. According to the 2012 Census of Agriculture, land in farm production had declined to approximately 115,831 acres. Nevertheless, Whatcom is one of the most important agricultural counties in the U.S., ranking among the top three percent of the country’s 3,075 farm counties, with a market value of

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nearly $360-million market for its agricultural production. The County is also the number one producer of red raspberries in the country, producing more than 65 percent of the entire U.S. crop.

2. Forest Resource Lands

Forest resource lands are lands used primarily for growing trees for commercial purposes. To be designated as forest resource lands, they must have the potential for long-term commercial investment for the management of forest products. The forestlands of Whatcom County have historically been one of the most important natural resources in the region. Lands in the lower foothills that were harvested in the early 20th century now support commercially-mature stands of timber. In addition, a few areas of primeval forest still remain. The majority of the county's non-federal forest resource lands are located in the Mount Baker foothills of Whatcom County. Most of this land is zoned for forest production uses. The majority of the land currently zoned for forest production is owned and managed by a few large institutions, including natural resource-based corporations, insurance companies, the State of Washington, and small private forest management companies. These landowners manage their lands primarily for the production of timber resources, while the State manages its timberland in Whatcom County for a variety of public trusts. Forest Board Lands provide revenue from timber sales to the State general fund, Whatcom County government, and other junior taxing districts in Whatcom County. A smaller portion of the land zoned for forest production is owned and managed by individual woodlot owners and farmer/foresters, some of whom reside on their properties. There are also forested areas of lowland Whatcom County that are neither zoned for forest production nor purposefully managed for the production of forest products; the majority of these lowland areas are zoned either Rural or Agriculture. Individual woodlot owners and farm/foresters constitute the majority of landowners of forestlands outside the forestry zone. The goals of individual forest landowners, whether in the forestry zone or not, encompass a broader range of objectives than just timber production and may include management for wildlife, conservation, specialty forest products, firewood, privacy, aesthetics, and low-density residential or other uses compatible with forestry.

3. Mineral Resources

Mining activities in Whatcom County have occurred since the 1850s, though the nature, scope and extent of such activities has changed considerably through time. These changes have reflected the economics and geologic character of Whatcom County. Historically, the more important mineral commodities of Whatcom County have been coal, gold (placer and lode), sandstone, clay, peat, limestone, olivine, and sand and gravel aggregate. Primary mineral resources include sand, gravel and limestone. Additionally, Whatcom County is home to one of the largest known deposits of olivine (a type of gemstone) in the United States.

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State and Federal Requirements for the Environment

The Washington State Growth Management Act (GMA) requires Whatcom County to identify and manage critical areas in a manner to prevent destruction of the resource base and reduce potential losses to property and human life. The GMA requires critical areas to include the following areas and ecosystems:

Wetlands

Areas with a critical recharging effect on aquifers used for potable water

Fish and wildlife habitat conservation areas

Frequently flooded areas

Geologically hazardous areas. The presence of critical areas will influence economic development activities, such as siting, permitting, mitigation and securing public funds to undertake projects. All projects identified, funded and subsequently developed through the Comprehensive Economic Development Strategy process will comply with state and local planning requirements. Growth management compliance can increase the cost of economic development projects. The State and National Environmental Policy Acts (SEPA and NEPA) govern and are intended to mitigate adverse development practices on the environment. Given the increasing requirements on local land use and economic development efforts, particularly assessment and permitting processes, an evaluation of the impact of these environmental requirements on economic development would help policy makers in decision making. Perceived or otherwise, environmental compliance, including the complexity of dealing with state agencies, can be as significant a factor in choosing to develop property and having adequate water supply, sewer capacity, or transportation linkages. For example, wetland regulations impact a jurisdiction’s commercial and industrial zoned land. Because of the difficulty and expense of mitigating any impact on wetlands, the presence of wetlands may be a constraint to economically viable development of the property.

E. Land Characteristics

Ownership and Use

Land ownership in Whatcom County is divided between public, tribal and private parties. Approximately 875,000 acres of the total land area – roughly the eastern two-thirds of the County – is under federal jurisdiction, including National Park Service and U.S. Forest Service lands. Tribal lands account for approximately 13,000 acres and include the Lummi reservation as well as its and the Nooksack Tribe’s trust lands. The remaining land is in private ownership, almost all of which being situated in the western third of the County. The two greatest uses of privately-owned land are for agricultural and residential purposes (approx. 108,400 and 60,800 acres, respectively), with the remainder divided among various other uses, including commercial and industrial parcels, utilities and vacant land.

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Industrial and Commercial Areas

The vast majority of industrial and commercial property in the County is located in its westernmost quarter and can be found in both urban and rural areas. The greatest concentration of commercial activity is in and around Bellingham, including its downtown core, the Bellis Fair Mall, Fairhaven, the Guide Meridian Road corridor and Sunset Drive. Commercial centers of varying size are also located in Birch Bay, Blaine, Everson, Ferndale, Glacier, Lynden, Maple Falls, Nooksack, Nugent’s Corner and Sumas. The County has a diverse set of industrial properties, accommodating light manufacturing through heavy industry. The Cherry Point industrial area, located on the shore of the Strait of Georgia northwest of Ferndale, is the home of both the BP and Phillips 66 refineries as well as Alcoa’s Intalco Works aluminum smelter. About 2,000 people are employed at Cherry Point. The cities of Bellingham, Blaine, Ferndale, Lynden and Sumas have substantial industrially-zoned properties, some of which being operated by the Port of Bellingham. There are also numerous small manufacturing and other industrial properties scattered throughout the County.

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Figure 1

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Figure 2

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SECTION 2: POPULATION AND LABOR FORCE

A. Population and Demographic Characteristics

Whatcom County is the ninth most populous county in Washington, with an estimated population of 205,800 in 2013 (Office of Financial Management). This represents growth of 23.4 percent since 2000, when the County’s population was 166,826 (2000 Census). By comparison, growth in nearby Skagit and Snohomish counties was 15.2 and 20.5 percent, respectively, over that same period. Despite the significant growth in population, Whatcom is classified as a rural county based on its population density of 97.7 persons per square mile. This is due in large part to the fact that the vast majority of the County’s land area is national forest and park lands, including the Mount Baker-Snoqualmie National Forest, North Cascades National Park and the Mount Baker and Ross Lake National Recreation Areas, all of which being very sparsely populated. The County’s seven incorporated cities are all in the western quarter of the County, which is characterized by small to medium-sized urban centers interspersed with residential developments outside city limits, large tracts of farmland, and woodlands and other open space. The core of this portion of the County is the Bellingham Urbanized Area, which includes the cities of Bellingham and Ferndale as well as unincorporated land along the Interstate 5 corridor between the two cities. The population of the Bellingham Urbanized Area was 114,473 in 2010 (2010 Census). Table 1 compares the populations of the County’s incorporated cities.

Table 1: Population of Whatcom County and its Incorporated Cities

Decennial Growth 2010 Share

1990 2000 2010 1990-2000 2000-2010 of County Pop.

Whatcom County 127,780 166,814 201,140 30.5% 20.6%

Bellingham 52,179 67,171 80,885 28.7% 20.4% 40.2%

Lynden 5,709 9,020 11,951 58.0% 32.5% 5.9%

Ferndale 5,398 8,758 11,415 62.2% 30.3% 5.7%

Everson 1,490 2,035 2,483 36.6% 22.0% 1.2%

Blaine 2,489 3,770 4,684 51.5% 24.2% 2.3%

Sumas 744 978 1,319 31.5% 34.9% 0.7%

Nooksack 584 851 1,338 45.7% 57.2% 0.7%

Unincorporated 59,187 74,231 87,065 25.4% 17.3% 43.3%

Source: Census 1990, 2000 and 2010

Among the County’s unincorporated communities, Birch Bay is the largest, with a 2010 population of 8,413, followed by Sudden Valley, which had 6,441 residents that year (2010 Census). These communities – both of which being classified as census-designated places – have experienced dramatic growth since 2000: Birch Bay grew by 69.6 percent from 2000 to 2010, and Sudden Valley’s population increased by 54.6 percent over that same period.

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Other relatively large unincorporated communities are Marietta-Alderwood (2010 Census population of 3,906), Peaceful Valley (3,324), Geneva (2,321) and Point Roberts (1,314). Among the smaller unincorporated communities – including Custer, Deming, Maple Falls, Acme, Glacier and Kendall – none had 2010 populations exceeding Custer’s 366 (2010 Census).

In 2012 Whatcom County’s population was slightly older than Washington’s as a whole. Those 18 years of age and older accounted for 79.7 percent of the population, compared to 77.0 percent for the entire State. The percentage of those 65 and older was 14.4 percent for the County and 13.2 percent for the State. As in most communities in the United States, Whatcom’s senior population is growing, which is attributable not merely to the general increase in life expectancy in the U.S. but also in large part to in-migration by seniors who have chosen the County as their home for retirement. It is anticipated that interest in Whatcom as a retirement community will grow, which – along with existing Baby Boomers who are likely to “age in place” – will continue to increase the 65-plus sector of the County’s population. The County’s population is generally less racially and ethnically diverse than Washington as a whole, as indicated in Table 2. This is not surprising, since the State’s racial and ethnic composition is significantly impacted by the diversity found in the Seattle metropolitan area. Indeed, only Whatcom’s percentage of American Indians exceeds that of the State, due to the presence of the Lummi Nation and the Nooksack Tribe. However, as is the case in both the State and the U.S. as a whole, the County is becoming more diverse, with the percentages of all of the non-White cohorts growing significantly from 2000 to 2012, except for the American Indian/Alaska Native cohort, which remained unchanged at 3.1 percent of the population. Racial and ethnic diversification is expected to continue into the foreseeable future.

Table 2: Racial and Ethnic Composition of Whatcom County by Percentage of Population

2000 2012 Washington (2012)

White 93.3% 87.9% 81.6%

Two or more races 1.2% 3.5% 4.3% Asian/Native Hawaiian/ Pacific Islander

1.8% 4.3% 8.4%

Amer. Indian/Alaska Native 3.1% 3.1% 1.8%

Black or African American 0.5% 1.2% 3.9%

Hispanic or Latino* 2.9% 8.4% 11.7%

*People who identify their origin as “Spanish,” “Hispanic” or “Latino” may be of any race. Thus, the percentage of those identifying themselves as such should not be added to percentages for racial categories.

Source: Census Bureau

1. Population Forecast

The Washington State Office of Financial Management (OFM) updates county and state long‐range population forecasts every five years to support local compliance with the State’s Growth Management Act. Low, medium and high population forecasts out to 2040 were issued by OFM in May 2012, although OFM considers the medium projection the most likely (RCW 43.62.035) because it is based on assumptions that have been validated with past and current information.

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Table 3: Whatcom County Population Forecast

Year Population Change from 2010 2010 actual 201,140 2020 forecast 225,307 12.0% 2030 forecast 256,643 27.6% 2040 forecast 284,901 41.6% Sources: Census Bureau; Washington State OFM (May 2012 medium forecasts)

2. Housing

Data from the 2010 Whatcom County Real Estate Research Report indicated that real estate activity in Whatcom County slowed in 2009, with the number of single-family homes sold falling 4.7 percent below the 2008 level, and the dollar volume of single-family sales falling 11.2 percent below the 2008 level. The number of condominiums sold in the County was down 29.3 percent in 2009. For single-family homes, the median price fell by 6.7 percent in 2009 after declining by 4.2 percent in 2008. In 2009, the median price of all homes sold in Whatcom County was $259,900, while the median price of homes sold in the Bellingham area was $274,000. Declining prices and a reduction in mortgage interest rates improved housing affordability in 2009. Permit activity in the County was also down in 2009, and in Bellingham it fell to its lowest level since at least 1977. The number of multi-family units permitted in Bellingham fell from 102 in 2008 to 63, and single-family permits fell from 86 to 49. Outside of Bellingham, permit activity fell 23 percent in Blaine, 29 percent in Lynden and 31 percent in unincorporated Whatcom County.

B. Labor Force

1. Overview

The civilian labor force includes all people over 16 who are working or actively seeking work. According to the Washington State Employment Security Department, Whatcom County’s 2012 labor force averaged 108,520, of which 100,550 county residents were counted among the employed and 7,970 were counted among the unemployed (constituting an unemployment rate of 7.3 percent). The County had approximately 81,500 nonfarm jobs in 2012, up from the 2011 approximation of 80,100. From 2011 to 2012, total employment increased by 1.7 percent in the County, while Washington as a whole saw an increase of 1.5 percent. Goods-producers supplied an average of 15,000 jobs in 2012, up 6.0 percent from 2011. Manufacturing employment expanded by 500 jobs over the year, bringing average annual employment to the same level it was in 2008. Data for the first several months of 2013 indicated continued growth in this sector. The manufacturing base is diverse: the three largest manufacturing industries in terms of employment are food manufacturing, transportation equipment manufacturing and wood product manufacturing. Petroleum and coal products manufacturing is also a large industry in the County.

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Construction employment declined from 2007 to 2010. As of 2012, the industry was beginning to recover, having added approximately 400 jobs, an expansion of 6.8 percent from 2011 to 2012. An uptick in construction activity through June 2013 further increased employment, with 600 construction jobs added between June 2012 and June 2013. Private service-providing employment averaged 50,500 in 2012. From 2011 to 2012, service-providers added 700 jobs, an increase of 1.5 percent. From 2011 to 2012, most private-sector service providers expanded payrolls. Finance, professional and business services each grew by 4 percent. Government employment in Whatcom County is principally concentrated in local government, including public K-12 education. From 2011 to 2012, employment in this sector dropped by 1.1 percent.

2. Employment Growth In the lead up to the recession (2003 to 2007), Whatcom County’s annual employment growth rate averaged 3.4 percent. From peak to trough, 6,200 jobs (about 7 percent) were lost. Whatcom County’s employment situation reached its low point in 2010, on track with much of Washington. However, from 2010 to 2012 Whatcom County recovered 2,700 of the jobs lost. The size of the resident labor force in Whatcom County climbed steadily in the lead up to the 2007 recession but then dipped from 2009 to early 2012, suggesting that the County’s labor market was recovering. However, data from the first half of 2013 revealed that the labor market had not yet recovered from the recession, and in fact, it dipped again. Whatcom County has some favorable factors that have aided job growth in the past and which should be beneficial for the near future. The County’s adjacency to the heavily-populated Lower Mainland of British Columbia, combined with the appreciated Canadian dollar, generally lower commodity prices in the U.S. and mobility improvements at the ports-of-entry on the Whatcom–B.C. border continue to draw thousands of Canadian shoppers to the County, and particularly Bellingham. Low cost flights from Bellingham International Airport to U.S. destinations have also drawn Canadian travelers, and in fact, about 52 percent of the travelers using the airport are Canadian. Whatcom generally has lower wage rates for many occupations compared to counties to the south along the I-5 corridor. This makes the County attractive to manufacturing and service-providing firms planning to relocate or expand. While the regional economy remains fragile, the outlook points to a steady, albeit slow, recovery. Table 4: Labor Force Statistics

Whatcom County Unemployment Rates

Labor Force Employed Unemployed Whatcom State National 1970 33,810 30,920 2,890 8.5% 9.2% 5.0%

1980 49,000 44,000 5,000 10.2% 7.9% 7.2%

1990 67,500 64,100 3,400 5.0% 4.9% 5.6%

2000 81,600 76,900 4,700 5.7% 5.2% 4.0%

2012 108,520 100,550 7,970 7.3% 8.2% 8.1%

Source: Washington State Employment Security Department

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3. Unemployment Whatcom County’s 2012 unemployment rate was 7.3 percent. During the recent period of recession and recovery, the peak unemployment rate in Whatcom County was 10.5 percent, which occurred in February 2010. The average unemployment rate for entire year of 2010 was 9.0 percent. Throughout 2012 and 2013 the unemployment rate declined, dropping as low as 6.0 percent in November 2013, ticking up to 6.2 percent in December. In the first quarter of 2014, the unemployment rates for January, February and March were 6.7, 7.5 and 7.1 percent, respectively.

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SECTION 3: THE WHATCOM ECONOMY Figure 3 Table 5

A. Overall Trends in Employment In Whatcom County the number of non-agricultural jobs has consistently grown since 1990, with the only significant decline occurring in the “Great Recession” years 2009 and 2010. From 1990 through 2012, the number of non-agricultural jobs grew an average of 1.93 percent annually, with peak annual growth of 5.83 percent from 1999 to 2000. Whatcom County’s average annual employment growth rate exceeded that of Washington as a whole, which grew at 1.44 percent annually over the same period.

Job growth slowed considerably in the decade 2003-2012 compared to the previous decade (1993-2002). The average annual rate of growth for total non-agricultural employment in Whatcom County from 2003 through 2012 was 1.34 percent, compared to 1.89 percent in the preceding ten-year period. However, the loss of 4,600 jobs between 2008 and 2009 – representing a 5.49 percent decrease – significantly skews the average annual rate over that period. Still, there was a net increase of 9,900 jobs from 2003 through 2012, although that number is significantly lower than the 13,300 jobs added from 1993 through 2002.

Figure 4

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1. Washington State and Whatcom County Job Comparison Excluding agriculture, in 2012 Whatcom County represented 2.75 percent of the State’s economy in terms of employment but just 2.12 percent in wages paid. Table 6 indicates that the County’s breakdown among the eight sectors is relatively close to that of the State.

Table 6 Employment Shares in 2012 Washington Whatcom

State County

SERVICES 43.5% 40.3%

RETAIL TRADE 11.2% 11.3%

GOVERNMENT 18.4% 18.3%

MANUFACTURING 10.0% 13.5%

CONSTRUCTION & MINING 4.7% 6.8%

WHOLESALE TRADE 4.4% 3.3%

TRANSPORTATION AND PUBLIC UTILITIES 3.1% 2.9%

FINANCE, INSURANCE AND REAL ESTATE 4.7% 3.7%

Job Total 2,798,952 76,973

Washington State Employment Security Department, Covered Employment

Excludes Agriculture, Forestry and Fishing sector

2. Highlights of Employment Sectors

Since 2000, only the service sector of the County’s economy has grown significantly, from 26.5 percent of non-agricultural employment to 40.3 percent in 2012. Six of the other seven sectors declined in that period of time, with only “government” increasing slightly (16.2 to 18.3 percent). With regard to wages, the service sector accounted for 34.0 percent in 2012 (compared to 21.3 percent in 2000), with the government sector next highest at 21.0 percent and manufacturing in third place with 16.0 percent. In 2000 those sectors accounted for 17.4 and 20.0 percent of wages, respectively. The bar graph below compares employment and wage distribution for the County’s eight principal employment sectors for 1981, 2000 and 2012. Figure 5

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Despite the net increase of more than 11,000 jobs between 2000 and 2012, four of the eight sectors declined over that period. The retail trade, wholesale trade, construction/mining, and transportation sectors collectively lost 7,639 jobs, with 5,294 lost in retail trade alone. Among the four sectors that expanded from 2000 to 2012:

Service employment expanded from 16,822 to 31,011, an increase of 84.3 percent. Employment in this sector alone is nearly equal to the next three largest sectors combined. However, while it accounted for 40.3 percent of non-agricultural jobs in 2012, it only contributed 34.0 percent of wages paid.

Although it shrank as a percentage of regional employment, the manufacturing sector grew by 960 jobs between 2000 and 2012, or slightly more than 10 percent. Manufacturing remains an important element of Whatcom County’s economy.

Employment in the government sector increased by 32.5 percent (3,460 jobs) from 2000 to 2012. “Government” is a somewhat deceptive name for this sector, since it includes not just employees of local, state and federal agencies but also those working in public schools or for tribally-owned, for-profit businesses, including the casinos operated by the Lummi Nation and the Nooksack Tribe.

The finance sector – which includes industries such as banking, investment brokerages, insurance, etc. – grew by 11.9 percent, adding 302 jobs.

Combined, the manufacturing, government and finance sectors provided 33.5 percent of the Region’s jobs in 2012, but 41.5 percent of wages paid.

Figure 6

B. The Natural Resource Economy

1. Agriculture Agriculture is an important economic activity in the county. Farming is prevalent in the northwestern lowlands of the County in and around Lynden, Ferndale, Everson, Nooksack and Sumas, as well as in

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unincorporated areas. In 2012, the total market value of Whatcom County agricultural products sold was $357.3-million, ranking eighth among all 39 counties in the State and first in western Washington. That amount also represented 3.92 percent of the market value of all agricultural products sold in the State. The Washington Agricultural Statistics Service estimates the overall economic impact of sales of agricultural products multiplies three to seven times in the regional economy. Figure 7 Figure 8

There were 1,702 farms in the County in 2012, totaling 115,831 acres. Livestock, poultry and associated products, including dairy, accounted for 66.5 percent of the County’s total market value and crop sales represented 33.5 percent. By comparison, in 2002 livestock and related products accounted for 73.5 percent of the County’s total market value, with crops accounting for the remaining 26.5 percent that year. The Washington Employment Security Department reports that “agricultural, forestry, fishing and hunting” employment in Whatcom County accounted for 3,439 jobs in 2012, representing 4.3 percent of the total County workforce in 2012. In 2000 there were 2,912 jobs in this sector, which was 4.2 percent. This indicates that agriculture-related employment is holding its own. In addition to full-time employment, thousands of seasonal jobs are created, including approximately 6,000 during the annual six-week red raspberry harvest alone. Dairying and berry farming are the dominant agricultural activities in the County. Whatcom is the biggest producer of red raspberries in the United States, and by itself its production surpasses that of every other state in the country except Washington. The County is also a major producer of blueberries and strawberries. In 2012 there were 120 dairy farms with a combined 45,562 milk cows (17.1 percent of the State total), making Whatcom the second biggest milk producer in Washington after Yakima County. Other important Whatcom County agricultural products or activities include corn and grass silage, seed potatoes, cattle and poultry, and greenhouse and nursery plants. Interestingly, in 1997 Whatcom had a total of 1,228 farms, the fifth-highest among the State’s 39 counties. By 2012 the number of farms in the County had grown to 1,702, a 38.6 increase, with an average size of 68 acres. Whatcom also retained its fifth-place ranking over that 15-year period.

2. Commercial and Recreational Fishing Washington State’s commercial fishing industry is structured around a multi-species fishery. Groundfish, halibut, albacore, salmon and shellfish are all major species groups important to the industry. In 2006, non-tribal commercial fish landings from Washington fisheries totaled nearly 109.4

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million pounds, generating $65.1-million in ex-vessel value (i.e., the price received by commercial fishers for fish). Whatcom County was the State’s second-largest commercial port area that year (after Grays Harbor County), with an ex-vessel value of commercial fish landings of more than $13.5-million, accounting for nearly 21 percent of the total value of landings from Washington fisheries. Bellingham and Blaine are the County’s two principal commercial fishing ports. The North Puget Sound Region – which the Washington Department of Fish and Wildlife defines as including San Juan, Skagit, Snohomish and Whatcom counties – is also the most popular location for recreational shellfishing in the State. In 2006, the combined recreational shellfish catch in those four counties included more than 3.3-million pounds of Dungeness crab, 23,520 pounds of shrimp, 93,038 pounds of clams and more than 19,000 individual oysters.

3. Forestry In 2013, the total volume of the timber harvest in Whatcom County was 72,098,000 board feet (Scribner Rule measurement), 40.3 percent of which was Douglas fir, 33.8 percent western hemlock and the remainder a combination of other conifers, cedars and hardwood species, especially red alder. However, Whatcom County has seen a steady decline in its forestry sector over the past several decades. Compared to the timber harvest in 2000 – which was 90,167,000 board feet – the 2013 harvest was 20 percent less. This decline in the timber harvest was significantly more pronounced on privately-owned forestland than in publicly-owned forests (in 2000, the entire harvest from public forestland in Whatcom County was from Washington State-owned land, and in 2013, nearly 98 percent came from State-owned forestland). The timber harvest on privately-owned lands in 2013 was 34 percent less than it was in 2000, compared to a decrease of just 4.8 percent in the harvest from publicly-owned forestland.

C. Major Sectors of the Nonfarm Economy

1. Manufacturing Until the 1990s, growth in manufacturing in Whatcom County was relatively steady, responding to business cycle declines during recessions, recovering, and then expanding. Manufacturing saw a significant slump in the late 1990s/early 2000s, primarily in the food processing and paper production industries, the most notable example among the latter being the closure of the Georgia-Pacific pulp mill in Bellingham in 2001. By 2007, Georgia-Pacific had also closed its tissue mill, bringing to an end pulp and paper milling in the County. Despite the historical decline of the County’s manufacturing sector – which mirrors trends in Washington and the U.S. as a whole – it remains an important dimension of the regional economy, thanks to the higher wages it pays relative to its share of regional employment. In 2012, the average annual wage in the manufacturing sector was $58,406, compared to countywide average of $40,407. While manufacturing is 11 percent of payroll employment in the County it represents 15.5 percent of all wages. Manufacturing jobs facilitate the ability to “grow wealth locally” as a result of the multiplier effect of additional spending by manufacturing job holders, and by other businesses that support the various manufacturers. According to the Census of Employment and Wages, there were 321 manufacturing operations in Whatcom County in 2012 that employed approximately 8,700 people. Of the 20 specific

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manufacturing subcategories listed, the two with the most firms (46 each) were food processing and fabricated metal products. These were followed by transportation equipment (29), wood products (27), furniture and related products (19), textile products (18) and machinery, also with 18 employers. The manufacture of electrical equipment, machinery and electronic products has seen the fastest growth in recent years. Since the end of the Great Recession in June 2009 the manufacturing sector has been the growth leader in Whatcom County, with employment rising almost 17 percent from then through June 2014. Many manufacturing jobs were lost during the recession, nationally and locally, but then rebounded, aided by a weak U.S. dollar, increased exports and companies “re-shoring” their operations back to American factories. The Cherry Point Industrial Urban Growth Area (UGA) is located in western Whatcom County, west of the City of Ferndale and south of Birch Bay. It is approximately 11 square-miles in size. Cherry Point is zoned for heavy-impact industrial land use and is home to two oil refineries (BP and Phillips 66) and Alcoa’s Intalco Works aluminum smelter.

Table 7

Manufacturing Rated by Growth

Overall annual Growth 1.50% Overall annual Growth -0.6%

Rank (2000) Sector Annual Growth 81-00 2000 jobs 2000 firms Annual Growth 00-13 2013 jobs 2013 firms

11 Furniture and Fixtures 3.2% 11 4 83.3% 121 19

18 Misc. Manufacturing Industries -5.3% 62 9 72.0% 598 33

5 Textile Mill Products 5.5% 227 7 5.4% 375 18

1 Instruments and Related Products 11.7% 204 9 5.1% 328 7

17 Stone, Clay, and Glass Products -3.9% 147 13 3.5% 208 13

12 Food and Kindred Products 0.7% 1438 41 1.5% 1701 14

7 Transportation Equipment 3.8% 883 33 1.4% 1036 29

13 Chemicals and Allied Products 0.6% 97 4 0.9% 108 10

10 Fabricated Metal Products 3.5% 392 25 0.7% 426 46

14 Petroleum and Coal Products 0.3% 820 4 0.4% 862 5

2 Industrial Machinery and Equipment 10.0% 458 34 0.3% 472 18

4 Rubber and Misc. Plastics 5.6% 403 16 -1.6% 326 13

9 Lumber and Wood Products 3.5% 1409 64 -2.2% 1034 27

6 Electronic and Other Elec. Equip. 4.9% 354 14 -3.4% 208 12

3 Apparel and Other Textile Products 7.1% 226 17 -8.3% 0 0

8 Printing and Publishing 3.6% 502 35 -8.3% 0 0

15 Primary Metal Industries -1.3% 963 5 -8.3% 0 0

16 Paper and Allied Products -1.4% 817 2 -8.3% 0 0

Other 903 227

9413 336 8703 321

2. Services

The “other services” and “finance, insurance and real estate” (FIRE) sectors combined constituted 44 percent of Whatcom County’s non-agricultural economy in 2012 (other-services alone was 40.3 percent), more than double the next-highest sector, “government.” As the largest single employment job sector in the regional economy, other-services also has the greatest range of job types (from domestic service workers to physicians), skill levels (unskilled to highly-skilled) and educational attainment (from no high school to graduate and professional degrees). Accordingly, the average annual salary for this sector in 2012 – $34,888 – can be greatly deceptive. Indeed, of the eight major sectors of Whatcom County’s economy in 2012, other-services ranked seventh in average annual income, ahead of only retail trade. And while the other-services sector

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accounted for 40.3 percent of the non-agricultural jobs in the County in 2012, it provided only 34 percent of the total wages earned that year. Nevertheless, “other services” not only kept its ranking as the regional economy’s largest sector in both employment and wages, it grew significantly from 2000, when it accounted for 25.6 percent of employment and 21.3 percent of wages. That represents growth of 57.4 percent in employment and 59.6 percent in wages in that sector from 2000. “Health care and social assistance” services are the largest single industry in the “other services” sector, accounting for 39 percent of covered employment (i.e., jobs covered by unemployment insurance). By comparison, the 2002 CEDS reported that at that time this industry was also the largest but with only 29 percent of employment. This growth in the regional health care industry is consistent with the national trend. In 2013, PeaceHealth St. Joseph Medical Center (including the Madrona Medical Group) was by far the largest single employer in Whatcom County, with more than 2,700 employees. Continued growth is expected in the health care industry as demand for services intensifies with the aging of the County’s population. When combined, three other sub-sectors provide approximately 38 percent of all service jobs. “Other services (except public administration)” constitute 14 percent of the sector’s employment. This includes services like automotive repair, beauty salons, funeral homes, pet care, etc. “Administrative and support and waste management and remediation services” represent 12 percent of the sector’s jobs and includes employment-placement agencies, janitorial services, locksmiths and landscaping contractors. “Professional, scientific and technical services” also account for 12 percent of the “other services” sector’s employment and includes lawyers, certified public accountants, engineers and graphic designers, among others. The FIRE sector had the second-highest average annual wage among the eight principal sectors of the County’s economy: $50,647. Finance and insurance jobs include commercial banking, securities brokerages, life and medical insurance sales, claims adjusting, etc. Real estate includes not just residential and commercial brokers but also property managers, appraisers, and even machinery and equipment rental.

3. Retail Trade As indicated in the graph below, taxable retail sales declined by approximately 16.4 percent in the middle of the nine-year period beginning in the first quarter of 2004 through the first quarter of 2013, beginning in the fourth quarter of 2007 when there were seasonally-adjusted retail sales of more than $412.3-million, to its trough in the fourth quarter of 2009, with sales of $354-million. Since then, retail sales have climbed steadily, increasing all but one quarter (1Q of 2011) through 1Q of 2013, when sales were $421.3-million.

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Figure 9

Retail trade, as a percentage of the regional economy’s jobs, remained steady at about 13 percent from 2002 to 2012. Retail employment is heavily concentrated in Bellingham, thanks largely to the presence of the Bellis Fair Mall, big-box stores along Guide Meridian Road and Sunset Drive, and numerous neighborhood shopping centers throughout the City. While Lynden and Ferndale have active downtowns and significant retail businesses, Bellingham is indisputably the Region’s retail hub, accounting for 66.6 percent of taxable retail sales in the County during 2012, but down from 69.3 percent in 2002. Unincorporated Whatcom County was second, with 16.7 percent in 2012, increasing by 2.6 percentage points from 2002.

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Figure 10

Average annual wages in retail trade were the lowest of all employment sectors in 2012, at $30,347. Wholesale trade wages were much higher ($48,127), ranking fourth among the eight sectors.

4. Tourism Tourism is a significant contributor to job growth in the local economy. Tourism industries are included primarily within the service and retail sectors, represented by amusement and recreation services, hotels and lodging, as well as portions of other industries, such as business services, dining, apparel and general/miscellaneous retail trade. Outdoor recreation is a significant and growing element of the Region’s tourism economy. The Bellingham Whatcom County Tourism reports the following facts about the regional tourism industry:

In 2013, direct county-wide traveler spending reached $573.9-million, ranking Whatcom County fifth in visitor spending revenues among the State’s 39 counties.

Whatcom County’s tourism industry supported 6,110 jobs in 2013, generating revenue in excess of $128-million.

Visitors to Whatcom County contributed $8.2-million in local (city and county) taxes in 2013 and $24.8-million in State tax receipts during the year.

Persons staying in commercial lodging (hotels, motels, inns, etc.) account for slightly more than 60 percent of all visitor spending, with an average of $343 per day.

Approximately 40 percent of travelers’ overnight stays are spent with family or friends, but these visitors still spend an average of $84 per day in Whatcom County.

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5. Government Among the eight principal sectors of Whatcom County’s economy, government accounts for the second-most non-farm jobs, at 18.3 percent. This sector has grown since 2000, when it provided 16.2 percent of jobs. Including the Silver Reef Casino – which, because it is owned and operated by the Lummi Nation is classified as “government” – eight of the County’s 20 largest employers are in the public sector. Local government employment (County and city government and school districts) accounts for about 74 percent of public jobs among the largest 35 employers in the County. Washington State government also has a significant presence in the County due to the presence of Western Washington University, Whatcom Community College and Bellingham Technical College. Western is the second-largest employer in the County, WCC is seventeenth and BTC is twenty-sixth. Despite the fact that there are no large military installations in the County, the federal government still maintains a significant presence, attributable primarily to U.S. Customs and Border Protection personnel responsible for operating the five ports-of-entry and to patrol the County’s 90-mile land border with Canada. Various other federal agencies – including the Coast Guard, National Park Service and the U.S. Forest Service – operate within the County.

6. Business Size Distribution Whatcom County’s economy is dominated by small businesses, which on average employ slightly more than 11 people. The graph below illustrates the breakdown of businesses by the number of employees. Among 7,075 firms operating in the County, about 85 percent of them employ less than 100 people, and 50 percent have just four employees or less. Sixty (60) percent of the County’s 80,850 workers are employed by firms with 100 employees or less, and 47 percent work for mid-sized firms of between 20 and 249 employees. Figure 11

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7. Major Employers Table 8: Largest Employers, 2013 rank Employer Employed rank Employer Employed

1 St. Joseph Hospital/ Madrona Medical Group

2,753 11 Alcoa Intalco Works 625

2 Western Washington Univ. 1,575 12 Aramark 620 3 Bellingham School District 1,200 13 Ferndale School District 600

4 BP Cherry Point Refinery 1,100 14 Silver Reef Casino 578 5 Heath Tecna, Inc. 850 15 The Markets, LLC 522 6 City of Bellingham 807 16 Matrix Service, Inc. 475 7 Whatcom County 805 17 Whatcom Community College 440 8 Haggen, Inc. 787 18 Costco 400 9 Lummi Tribal Office 700 19 Alpha Group 400 10 Fred Meyer 660 20 Sterling Health 362

D. Income Measures

1. Personal Income Per capita personal income (PCI) is a common measure of the overall economic well-being of the residents of a specific area, as it captures all sources of earned and unearned income. Table 9 and Figure 12 compare the changes in PCI for the County, the State and the nation. Whatcom County’s PCI in 2010 – $36,511 – was just 92 percent of the U.S. average, and 87 percent of the average for Washington. However, Whatcom’s PCI relative to that of the State and the U.S. improved significantly since 2000, when it was 76 percent and 82 percent, respectively.

Table 9 -- Per Capita Personal Income (PCI) Whatcom Washington

Whatcom County PCI compared to State and U.S.

County State Nation vs. State vs. U.S.

1970 $3,777 $4,189 $4,084 90% 92%

1980 $9,133 $10,810 $10,091 84% 91%

1990 $17,016 $19,367 $19,354 88% 88%

2000 $24,764 $32,407 $30,318 76% 82%

2010 $36,511 $42,024 $39,791 87% 92%

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Figure 12

2. Poverty Levels and Rates The poverty rate is measured by the percent of the population living at or below the federal poverty level, known as the poverty line. In 2014, the poverty line as defined by the U.S. Department of Health and Human Services was $23,850 for a family of four. From 2008 through 2012, the percentage of Whatcom County’s population living at or below the poverty line was 15.8 percent, while that of the State was 12.9 percent. That five-year average of 15.8 percent for the County represents a significant increase in the number of people living at or below the poverty line since 1998, when the percentage was 11.1 percent. With about one out of every six County residents living in poverty, reliance on various types of public assistance – including food and housing vouchers – will continue to have an impact on the regional economy.

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SECTION 4: THE ECONOMIC DEVELOPMENT SYSTEM

I. Service Providers

A. Business Support and Economic Development Services Whatcom County is fortunate to have a highly-professional and experienced group of economic development resource providers.

1. Small Business Development Center of Western Washington University Washington’s network of Small Business Development Centers (SBDCs) is a cooperative effort of Washington State University, other educational institutions such as Western, economic development organizations and the U.S. Small Business Administration (SBA). The SBDC program is designed to provide high quality business and economic development assistance to small businesses and nascent entrepreneurs (pre-venture) in order to promote growth, expansion, innovation, increased productivity and management improvement. SBDCs must work collaboratively with assistance from SBA's district offices to coordinate their efforts to expand services and avoid duplication, particularly with other SBA-funded programs such as Women Business Centers (WBCs), Service Corps of Retired Executives (SCORE), Veteran Business Outreach Centers (VBOCs) and U.S. Export Assistance Centers (USEACs). SBDCs are encouraged to fully utilize the resources of other federal, state and local government programs as well as academic and private-sector programs concerned with aiding small businesses in order to provide seamless, non-duplicative business development assistance at every stage of their growth. The Small Business Development Center in Bellingham has three certified business advisors with extensive experience as well as a statewide network of more than 30 other advisors who can assist them in meeting the needs of Whatcom County businesses. Available advisory services include:

Developing a business plan Financing options, including conventional business and SBA loans Managing cash flow Addressing human resource concerns Buying or selling a business No-cost, confidential business advising

Information on the full range of SBDC services available to existing or prospective business owners in Whatcom County is available at http://www.wwu.edu/sbdc/ or by calling (360) 778-1762.

2. Bellingham/Whatcom Chamber of Commerce and Industry

The Bellingham/Whatcom Chamber of Commerce and Industry is organized to bring together an association of people interested in the economic enhancement and general well-being of Whatcom County and its constituent communities. The Chamber frequently acts as the “front door” for those considering business opportunities in the County, and as such it plays an important role in providing

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guidance to potential entrepreneurs and directing them to regional organizations that can assist them. Among the business resources that the Chamber offers are:

Leadership Whatcom: The goal of Leadership Whatcom is to develop the next generation of active leaders for Whatcom County. Decision-makers of local businesses, government agencies, non-profit organizations, schools and universities participate in a nine-month program designed to teach leadership skills by addressing key regional issues affecting Whatcom County. Graduates of Leadership Whatcom go on to contribute to the region’s economic and cultural vitality.

Business Health Trust: This group benefits program provides highly competitive rates through contracts with the largest and most respected insurance carriers in Washington.

Whatcom Young Professionals (WYPs): WYPs provides its members with opportunities for networking, learning and having fun in order to facilitate lasting and productive relationships among the next generation of business and community leaders for Whatcom County.

Other services include The Whatcom Report, a weekly update on business; The Member Directory, and; the use of the Chamber’s membership mailing list for business development.

Information on the Chamber’s services is available at http://bellingham.com/ or by calling (360) 734-1330.

3. Port of Bellingham, Economic Development Division The Port’s Economic Development Division works to attract and retain jobs and private investment in Whatcom County. As the County-appointed Associate Development Organization, the Port is recognized by the State as the primary economic development partner for Whatcom County. Included among the Port’s responsibilities and resources are:

Primary Point of Contact and Lead Management: The Port takes the lead in business expansion and attraction efforts for the County, focusing on the “traded sectors,” i.e., goods and services primarily consumed outside the region of production.

Marketing Efforts: Through trade shows and direct outreach to prospective companies, the Port promotes Whatcom County as a place to do business, with attracting Canadian businesses a priority.

Community Information: The Port publishes the Whatcom County Profile for businesses interested in doing business in the County, stays current on business-services providers, and maintains a GIS-based site inventory and contacts with the development community.

Technical Assistance: Port staff assists in the development of public programs to support industry location and growth, such as loan and grant programs to fund infrastructure, available incentives and special designations.

Coordination: To facilitate a streamlined business development process, the Port provides coordination of the activities of numerous stakeholders in the County, including the Small Cities Partnership, the Whatcom County Economic Development Practitioners Group, state agencies, workforce development and higher education, and all planning jurisdictions.

Community Information: The Port publishes the Whatcom County Profile, which provides a wealth of information for people and businesses interested in doing business in the County,

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and Gateway to the U.S.A., a guide to assist Canadians and other foreign nationals interested in establishing operations in the County.

Foreign Trade Zone No. 129: The Port’s Foreign Trade Zone (FTZ) enables companies doing business internationally to reduce costs on foreign merchandise. Companies in Whatcom County can secure FTZ status for warehousing, distribution and manufacturing operations through a new streamlined process.

Industrial Revenue Bonds: Tax-exempt financing issued through the Port’s Industrial Development Corporation is available to qualifying companies. The Port can issue up to $10-million in tax-exempt bonds for manufacturing activities.

Technology Development Center: In 2007, the Port of Bellingham was designated as one of the State’s first “Innovation Partnership Zones.” These zones were created to promote and develop Washington’s regional economies by serving as globally-recognized hubs of expertise, innovation and commercialization. The Port’s Waterfront Innovation Zone in Bellingham is shared by Western Washington University and Bellingham Technical College to carry on research and development projects and to support workforce development.

More information on the Port’s economic development programs is available at http://www.portofbellingham.com/ or by calling (360) 676-2500.

4. Northwest Economic Council The Northwest Economic Council (NWEC) is a 501(c)(6) not-for-profit corporation founded in 1984 to bring together Whatcom County’s private, public and not-for-profit sectors to establish and foster a strategic approach to growing the County’s economy. In 2013, NWEC aligned itself with the Whatcom Council of Governments in order to create a structure that allows the NWEC Board of Directors to provide strategic direction and oversight to economic development efforts and activities throughout the County, with WCOG staff serving as its administrative and fiscal agent. In addition to convening the Steering Committee that oversaw the preparation of this CEDS, in 2014 NWEC also finalized Whatcom Futures: Toward a Sustainable Economy, which constitutes Whatcom County’s “Preferred Economic Future” as outlined in Section 6 of this CEDS. An ongoing function of NWEC is reviewing applications submitted by local governments and other eligible entities in Whatcom County for funding from the County’s Economic Development Investment (EDI) Program. NWEC’s EDI Technical Advisory Committee – made up entirely of members from the private sector – reviews applications and makes recommendations on them to the EDI Board. More information on the Northwest Economic Council is available by calling (360) 676-6974.

5. Bellingham Whatcom County Tourism Bellingham Whatcom County Tourism (BWCT) is the County’s official tourism bureau. It is a non-profit organization with more than 300 members representing a variety of tourism and community-related businesses. BWCT promotes the region by providing information to those considering visiting the County, relocating to it or hosting a convention or event in the region. Services offered by BWCT include:

Staffed Visitor Information Center at Exit 253 on Interstate 5 in Bellingham

Assistance for tour operators

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Marketing the region as a destination

Business education workshops

Regional tourism research and statistics. Information on Bellingham Whatcom County Tourism is available at http://www.bellingham.org/ or by calling (360) 671-3990.

6. Technology Alliance Group for Northwest Washington The Technology Alliance Group for Northwest Washington (TAG) is a regional trade association that supports the region’s technology industry by connecting, highlighting and promoting the growth of technology companies through a variety of opportunities, partnerships and programs. It is the largest regional technology organization in Washington. More information on TAG is available at http://www.tagnw.org/ or by calling (360) 318-7710.

7. Northwest Innovation Resource Center The Northwest Innovation Resource Center (NWIRC) is committed to creating economic opportunity and jobs by supporting entrepreneurial innovation. NWIRC staff provides oversight and ensures that each entrepreneur with whom it works has the opportunity to experience company growth and forward momentum. By utilizing high-caliber experts as mentors who are dedicated to understanding the whole business, entrepreneurs can focus on their passion and specialties, while benefiting from the guidance and experience of seasoned business leaders. NWIRC’s programs include:

The Enterprise Program, which is focused on pre-start-up and start-up entrepreneurs with innovative, scalable or non-traditional business structures.

The Build It Program, which is focused on inventors and product designers. The program provides guidance to inventors to help them create and grow their businesses into profitable ventures.

Information on NWIRC is available at http://nwirc.com/ or by calling (360) 255-7870.

8. Northwest Workforce Council The Northwest Workforce Council is a 27-member board responsible for governance and oversight of the workforce development system in Whatcom, Skagit, Island and San Juan counties. Authorized under the federal Workforce Investment Act of 1998, the Council convenes the private and public sectors to address workforce development issues. Led by a business majority, the Council includes representation from businesses, labor, education, economic development and government. In partnership with local elected officials, it operates using a strategic plan whose regional strategies support the state’s strategic workforce plan while addressing local issues and economic development priorities. The Council provides financial resources to qualified individuals for occupational or technical education programs and customized training in high demand occupations. Through resource leveraging with public and private investments, it targets its training resources to increase the

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number of workers on the high-skill path and narrows the skills gap for employers. The Council also collaborates with the K-12 system and youth organizations to enhance educational attainment. Through its WorkSource One-Stop Centers the Council links job seekers to employment opportunities, provides career information and job search training, and functions as the access point to an array of training resources. Customized services are available for veterans and to help traditionally underserved populations enter successful jobs and careers. Information on the Northwest Workforce Council is available at http://www.nwboard.org/.

9. Sustainable Connections Sustainable Connections envisions a thriving, collaborative community where local businesses are prosperous and contribute to a healthy environment and the well-being of all citizens. Its mission is to be the local forum where businesses come together to transform and model an economy built on sustainable practices. Sustainable Connections accomplishes this by working with local, independently-owned businesses that have the autonomy to make transformational changes in the way they operate, including reexamining where they buy goods and services, how they consume energy, grow and distribute food, build homes, and even how they define success in business. Sustainable Connections is supporting a community of innovators in green building, sustainable agriculture, renewable energy, supporting independent businesses in town centers, and mentoring a new breed of entrepreneurs that have designed their business with a sustainable vision. Among the services that Sustainable Connections provides are:

Education: Providing technical assistance for businesses and partner organizations that builds our community’s capacity to participate in the opportunities of a sustainable economy.

Connections: Connecting businesses to each other to share best practices and do more business together.

Market Development: Engaging in public promotion and education that creates opportunities for sustainable economy businesses.

Information on Sustainable Connections is available at http://sustainableconnections.org/ or by calling (360) 647-7093.

10. Whatcom Council of Governments The Whatcom Council of Governments (WCOG) operates programs for the benefit of Whatcom County’s 206,000 residents and provides a variety of services to and on behalf of its members, which include the County’s seven cities, Whatcom County Government, the Port of Bellingham and other regional entities. Established in 1966 by an act of the State Legislature, WCOG provides a forum through which mutual cooperation, information sharing and joint action are facilitated. Like most other councils of governments throughout Washington and the United States, WCOG has neither taxing authority nor the ability to regulate land use. In 1982, WCOG was designated to serve as the region’s Metropolitan Planning Organization (MPO), the federally-recognized transportation policy board for the Bellingham Urbanized Area. With the passage of the Washington State Growth Management Act in 1990, WCOG was subsequently designated as the Regional Transportation Planning Organization (RTPO) for all of Whatcom County.

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The MPO and RTPO are governed by a joint Transportation Policy Board which ensures that the region meets its obligations under the Growth Management Act as well as the transportation planning requirements of the U.S. Department of Transportation’s Federal Highway Administration and Federal Transit Administration. Other important WCOG activities and programs include the International Mobility and Trade Corridor Program, which facilitates improved transportation and commerce in the Cascade Gateway region of Washington State and British Columbia; staffing and convening the Citizens’ Transportation Advisory Group, which provides the perspective of private citizens in the regional transportation policymaking process; operating the Whatcom Smart Trips and Safe Routes to School programs; and serving as administrator and fiscal agent for the Northwest Economic Council.

11. Public Utility District No. 1 of Whatcom County Public Utility District No. 1 of Whatcom County (PUD) was formed in 1937 by a vote of the people of Whatcom County. The PUD has countywide authority to supply electric and water services. The District is governed by an elected board of three nonpartisan commissioners who come from distinct districts in the County. The commissioners oversee policy decisions for the operation of a utility system that provides electric and water service.

Water Operations: The PUD treats and distributes 5 billion gallons of water a year and is the largest water processor in Whatcom County with an average use of 17 million gallons per day. It operates one water system comprised of two river diversions, two treatment plants and 20 miles of pipeline, providing industrial-grade water to 10 industrial, two municipal and 50 irrigation customers. The PUD also operates a second system that provides potable water and fire protection for a large industrial park.

Electric Operations: The PUD currently supplies three electrical customers an average of 27 MWh purchased from the Bonneville Power Administration (BPA). The PUD owns 12 miles of transmission lines and two substations, with two points of delivery of 115kv and one point of delivery of 230kv. It has a separate power services contract with BPA and Intalco Aluminum to act as intermediary for energy supply as well as intertie agreements with Puget Sound Energy and BPA.

Engineering and Project Development: The PUD provides engineering and technical support to the District, including planning and overseeing projects such as improvements, construction, operations and modifications to the water and electric utility systems and District facilities. This includes preparing bidding documents/procedures and working with consultants and contractors.

Information on the Public Utility District No. 1 can be found at http://www.pudwhatcom.org/ or by calling (360) 384-4288.

12. Western Front Door to Discovery

The Front Door to Discovery is designed to stimulate economic development and greater social awareness in northwest Washington and throughout the State while enhancing the spirit of entrepreneurship and innovation at Western Washington University. It makes the myriad of Western’s resources – including faculty and students – available to meet needs in the broader community while providing opportunities for Western students to gain real-world experience.

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Actions:

Create an institutional mechanism to connect Western faculty, staff and students to each other and to organizations in the community to leverage the resources of all

Overcome the psychological distance between Western and the community

Create a direct personal connection between engaged students and faculty to resources and opportunities within the University and in the private and public sectors.

Serve as a central clearinghouse to match needs to resources

Develop and foster collaborative partnerships

Create a space for people who are energized about creating a great climate for entrepreneurs in the community

Goals:

Improve and stimulate economic and social growth in the northwest Washington

Encourage the spirit of entrepreneurship, innovation and collaboration within the wider community and Western

Raise awareness of innovation and research, technology transfer and commercialization of technology at Western

13. Whatcom Business Alliance

The Whatcom Business Alliance (WBA) is a non-partisan, privately-funded non-profit organization established in 2012 to provide a strong voice for business in Whatcom County, whether small or large, private or public, and in any industry or niche market. The WBA membership has grown rapidly with a unifying mission of supporting and celebrating a positive business environment and providing a vast communications network to address issues concerning businesses. The WBA encourages, supports, facilitates and advocates on behalf of companies that:

Strive to grow and retain jobs

Have interest in expanding

Want to start-up or relocate in Whatcom County. By creating a strong communications network of business leaders, the WBA and its support publication Business Pulse Magazine provide the business community a relevant and influential voice on issues that impact the quality of life for everyone in Whatcom County. More information on WBA is available at http://www.whatcombusinessalliance.com/.

14. SCORE Chapter 591 SCORE Chapter 591 is part of SCORE, a national nonprofit association founded in 1964 dedicated to educating entrepreneurs and helping small businesses start, grow and succeed. SCORE is a resource partner of the U.S. Small Business Administration. The Chapter’s 14 counselors provide free, confidential business advice to start-ups and existing businesses in Whatcom County as well as to those in Island, San Juan and Skagit counties. With more than 275 years of combined business experience, Chapter 591’s counselors can provide advice and mentorship across a broad set of business environments, including:

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Financial and general management of large and small businesses

Retail store management

Restaurant operations

Commercial lending

Business education

Business accounting

Human resource development and management

Product development

Manufacturing

Quality systems, and

Information technology management. The Chapter also offers classes on starting and managing a business and in preparing business plans. For more information on SCORE’s services or to set up an appointment, please call (360) 685-4259.

15. Center for Economic and Business Research The Center for Economic and Business Research (CEBR) was established in 1985 as an extension of the College of Business and Economics at Western Washington University. CEBR works in partnership with businesses, government entities and non-profits to bring to bear the resources of Western students, faculty and staff in finding solutions to challenges. CEBR’s associates have expertise in the following areas:

Human Resources

Organizational Behavior

Strategic Planning

Management

Marketing (Marketing Research, Marketing Strategy or IMC Strategy)

Finance

Accounting

Business Planning

Project Management

Forecasting

Environmental Economics

Regional, Community and Business Economics

Management Information Systems

Operations Management

International Business

Supply Chain Management. CEBR is a member of the Association for University Business and Economic Research. More information on CEBR and the services it provides is available by calling (360) 650-3909.

16. Municipal Economic Development Programs All seven of Whatcom County’s cities engage in economic development activities – either directly or indirectly – although they vary significantly based on budgets, staffing levels and program-

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management structure. Complementing and supporting municipal economic development efforts are those of the various small chambers of commerce in the Region. Professionally-staffed chambers serve Ferndale and Lynden, while those serving Blaine, Birch Bay, Everson/Nooksack, the Mt. Baker Foothills, Point Roberts and Sumas are volunteer organizations.

a. City of Bellingham, Office of Business Relations and Economic Development The City of Bellingham supports the regional economy in a variety of ways:

Targeting specific neighborhoods for revitalization and redevelopment;

Providing funding and strategic planning assistance to local economic development agencies and organizations;

Creating great public amenities, such as parks, transportation infrastructure, street improvements, and projects such as the Depot Market Square; and

Supporting tourism. Business Incentive Programs include:

Green Building Incentives Multi-family Tax Exemption Program - BMC 17.82 Application (PDF) Historic Preservation Tax Incentives Washington State Department of Revenue - Deferrals, Exemptions and Credits Choose Washington Incentives for Business Municipal Research and Services Center of Washington - Economic Development Program

Incentives offered by Economic Development Organizations Strategic Planning Overview: This Phase I report dated April 15, 2009 provides a current overview of Bellingham's industry sectors, employment zones, and future employment capacity. (2008 City of Bellingham Employment Lands Report (5,400K PDF); Cover Memo from Tim Stewart, Planning Director (PDF)). Phase II of the study, completed in December 2009, builds on the 2008 Employment Lands Report to identify ways to retain and expand existing businesses and attract industry sectors that are compatible with Bellingham's comprehensive planning goals ( 2009 City of Bellingham Employment Lands Report - Phase II (565K PDF); Cover Memo from Tim Stewart, Planning Director (PDF)). Downtown Revitalization: Bellingham's revitalized downtown is due in large part to the concentrated efforts of the City, working closely with the Downtown Bellingham Partnership and other partners to take actions outlined in the City Center Master Plan. Accomplishments thus far include new benches, public art, trash cans, downtown landscaping, sidewalk improvements, as well as improvements to Maritime Park and the boardwalk along Whatcom Creek. More residential units are now located downtown due to increased private sector investment, and projects such as Depot Market Square have had a huge influence on economic development downtown. Grant Funding: The City also promotes Bellingham by funding arts and other organizations through the Tourism Promotion Fund. Waterfront Development: Please visit the Waterfront Development Planning webpage for more information.

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More information on economic development programs in Bellingham can be found at http://www.cob.org/services/business/economic-development.aspx or by calling (360) 778-8105.

b. City of Blaine The City Manager and Community Development Services Department - with policy direction provided by the City Council and the Blaine Economic Development Advisory Committee – are primarily responsible for facilitating economic development in the City of Blaine. The City has established a Rural Economic Development Revolving Loan Program to provide financing at below-market interest rates to existing businesses and to encourage new business start-ups. The City also relies on economic development services provided by the Port of Bellingham, the Small Business Development Center and other agencies. More information on economic development programs in Blaine can be found at http://wa-blaine.civicplus.com/index.aspx?nid=425 or by calling (360) 332-8311. Priorities include construction of a downtown boardwalk that looks out over the Blaine Marina, Semiahmoo Spit and the Puget Sound; recruitment of businesses for the historic Central Business District; redevelopment of the Marine Commercial Waterfront District (managed by the Port of Bellingham); pre-approved development sites with planned infrastructure improvements in the Manufacturing District; reduced development permit costs; and better planning services for the community. The city also finances an innovative loan program for business and community development, funded through local utility tax revenues. The Mayor and City Manager have recently conducted several “Town Meetings” to help the City develop a common “Vision” for future growth and development in Blaine. In addition, the city has completed and is implementing nine development and capital improvement plans.

c. City of Everson In 2009 the City of Everson adopted its 2009-2011 Economic Development Work Plan. The City’s general economic development philosophy is to:

Sustain moderate growth.

Target a broad range of industries, family‐wage to high salary employment opportunities.

Ensure quality growth and land use by effective regulations and code enforcement.

Encourage growth into certain areas through the use of zoning and other development regulations.

Encourage the retention and growth of existing local firms.

Provide efficient and timely administration of City services. The general activities emphasize:

Responding to specific requests for assistance from local firms.

Maintaining public works and utilities so that existing systems are not over‐utilized.

Emphasizing business development for existing businesses to expand.

Utilizing prompt and firm code enforcement to negate negative impacts of code violations on the surrounding areas.

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The tools that support this general philosophy, specific goals and strategies outlined in the work plan include:

Use of infrastructure investment to attract new firms and development to designated areas.

Targeted local, state, and federal funds.

Targeted government and private resources and partnerships.

Funded, staffed, and administered code enforcement. More information on economic development programs in Everson is available calling (360) 966-3411.

d. City of Ferndale The Community Development Department is responsible for working with community members, elected officials, project applicants, and others to establish a collective vision for the community. The Department is tasked with establishing and enforcing regulations that will result in the realization of this vision and provides the following resources and services:

Building in Ferndale Downtown Planning & Development Environmental Reviews Maps & GIS Retail Development Main Street/ Axton Road Planned Action EIS Annexation and Urban Growth Areas Comprehensive Plan Land Use Code (zoning code) Development Standards Review

More information on economic development programs in Ferndale can be found by calling the City’s Community Development Department at (360) 685-2379. The Ferndale Chamber of Commerce is also actively involved in promoting the City as a place to do business and in serving the needs of its members. Information on the Chamber can be found at http://www.ferndale-chamber.com/ or by calling (360) 384-3042.

e. City of Lynden

Economic development in Lynden is coordinated in the City's Community Development and Planning Department. In 2008, with funding support from the Port of Bellingham, Lynden commissioned a Retail Market Analysis. Lynden’s 2005 Comprehensive Plan also addresses economic development in Chapter 5 – Lynden’s Economy, the update for which will be included in the City's process of updating its entire Comprehensive Plan. Lynden also prepared the Downtown Lynden Development Plan and Economic Enhancement Strategies in 2001 “to describe a ‘vision’ for what the Lynden downtown should be and to develop an economic enhancement strategy to increase its commercial and job base.”

More information on the City of Lynden’s economic development programs can be found at http://www.lyndenwa.org/departments/planning/ or by calling (360) 354-5532.

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The Lynden Chamber of Commerce also supports businesses in and around Lynden and promotes the City as a place to work, live and play. Information on the Chamber can be found at http://lynden.org/ or by calling (360) 354-5995.

f. City of Nooksack Economic development efforts in the City of Nooksack have focused on revitalization of the commercial core of the city. In 1999-2000, the City developed and adopted a Community Action Plan that laid out a 10-year plan for economic and community revitalization. It detailed a three-pronged approach to supporting economic development. Since adopting the plan, the Nooksack City Council has implemented several components of the plan and modified others. In 2001, Nooksack rezoned the area to be included in the pedestrian-oriented Central Market District and adopted new zoning regulations for the area. The City also updated its Parks and Open Space Plan to lay the groundwork for development of the parks and trails component envisioned in the plan. Nooksack has recently completed two major sidewalk projects that will increase pedestrian access to the Central Market District. Several major infrastructure projects intended to support economic development have also been completed, including installation of a 12-inch water main loop serving the downtown area, a water booster pump station, and a major upgrade to the Everson wastewater treatment plant (which serves Nooksack) that will expand capacity to serve new development through 2036. This last project is planned to be completed in 2015.

g. City of Sumas The City of Sumas began to pursue an economic diversification strategy in the mid-1980s, with the assistance of the Port of Bellingham. The Sumas Industrial Cargo Terminal was built, including utilities and a unique heavy-haul road capable of supporting Canadian-weight trucks, which are heavier than typical U.S. trucks. The industrial area has been expanded several times and now includes 11 major tenants. The City continues to pursue tenants for the industrial park. Over the past decade, the heavy-haul road has also been expanded, and further expansion to open up access to additional industrial properties is planned for the future, the timing of which to be determined based on market demand. The City has also worked with a local property owner to develop a privately-owned wetland mitigation bank where developers can access mitigation to offset unavoidable impacts to low-value wetlands. The entire mitigation site is now protected through a restrictive covenant that will allow the area to be preserved and enhanced in perpetuity. Sumas also began a downtown revitalization effort in 1998. The program began with an assessment of current conditions based upon questionnaire and interview data compiled from City residents, nearby Canadian residents, downtown business owners and local industries. The assessment led to community clean-up programs, Cherry Street beautification efforts (new ornamental trees and planter boxes), and the hiring of a consultant to provide long-term, one-on-one business assistance counseling to local merchants. The City is still utilizing the business consultant, and it regularly makes public works and planning staff available to meet with new and existing business owners interested in expanding in Sumas.

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Sumas provides grants and/or low-interest loans (funded through utility revenues) to public or private developers requiring off-site infrastructure improvements in order to accommodate their projects. The City has also completed a major expansion of its ballfields to attract more people to the area and help increase economic activity in the downtown commercial core.

17. Whatcom County Government Whatcom County addresses economic development in Chapter 7 – Economics, of the Whatcom County Comprehensive Plan. That chapter lays out a strategy to enhance “economic vitality,” which it defines as “. . . the measure of the economic health of the County – its people, its businesses, and its government.” To achieve this, it recommends public and private action designed to achieve:

Maintenance of a strong, sustainable economic base

Diversification of the local economy

Improved job training and educational opportunities; and

Creation and maintenance of a range of family-wage jobs The County’s Economic Development Investment (EDI) Program provides financing for public facilities that support the local and regional economies and which will stimulate private investment. This is accomplished by offering very-low interest loans, grants or a combination of both to local governments or other public-sector entities that successfully apply for funding through this competitive program. The County’s cities, water and sewer districts, Public Utility District No. 1, the Port of Bellingham and Whatcom County itself are all eligible applicants for EDI funding. The program was established following a 1997 act of the State Legislature that authorized “rural” counties such as Whatcom to retain a portion of the sales tax collected to finance public facilities for the purpose of improving their economies. Financing provided through the EDI Program is intended to facilitate the expansion, retention and attraction of businesses and to increase employment opportunities in Whatcom County. More information on economic development in Whatcom County is available by calling the County Executive’s Office at (360) 676-6717.

18. Lummi Nation The Lummi Community Development Financial Institution (LCDFI) was founded in 2006 “to provide access to education, financing and asset growth in order to improve the prosperity and well-being of families." In 2008, LCDFI was certified by the U.S. Department of the Treasury, and in 2011 it was granted 501(c)(3) not-for-profit status by the Internal Revenue Service. LCDFI has grown to be a leading organization catering to the Lummi Nation while partnering with the Lummi Nation Ventures Program in the areas of small business training and lending, entrepreneurship education, and financial literacy. Working with Lummi Ventures, LCDFI offers a selection of business development classes, one-on-one technical assistance, and business loan fund products to expand private small businesses and financial literacy on the Reservation. LCDFI also partners with the "Lummi Youth Build" program to expose young people to entrepreneurship and promote good money-management habits and the responsible use of credit.

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Lummi Ventures has developed a 10-year strategic plan to eliminate poverty and increase prosperity in the Lummi community that addresses economic development, healthy families and education. More information on this initiative is available by calling Lummi Ventures at (360) 384-2331. LCDFI currently offers small business loans for Tribal members, descendants, individuals employed by the Lummi Indian Business Council, and individuals residing in northwestern Washington who employ Native Americans or are interested in starting or expanding a business that would impact Indian communities, particularly the Lummi Nation. LCDFI can be reached by calling (360) 594-6004.

19. Nooksack Tribe The Nooksack Business Corporation, a tribal corporation of the Nooksack Tribe, plays a leading role in tribal economic development. It operates the Nooksack River Casino and Nooksack Market Centre in Deming and the Nooksack Northwood Casino in Lynden. The Tribe participates in the North Intertribal Vocational Rehabilitation Program, which serves Native Americans enrolled in a federally-recognized tribe who have permanent disabilities that have interfered with their ability to work. These services are culturally appropriate and may include evaluation, assessment, goal planning, training, education, job search assistance, transportation assistance, mental health referral and advocacy. Information is available by calling (360) 592-5176, ext. 3667.

B. The Workforce Development System Workforce development in Whatcom County is primarily implemented by the County’s public education providers, the Northwest Workforce Council and the WorkSource One-Stop Center in Bellingham.

1. Public Education Facilities Whatcom County’s labor force is well regarded, which is due primarily to the quality and quantity of its public education institutions. The principal post-secondary institutions in the County are Western Washington University, Bellingham Technical College, Whatcom Community College and Northwest Indian College. There are also branch campuses of Charter College (based in Anchorage, Alaska) and Trinity Western University, whose main campus is in nearby Langley, B.C. Participation rates describe the level of service provided by the public education system to each county in the state. It measures the fall quarter enrollment in 2-year and 4-year public institutions as a share of the State’s population over age 17. There are 5 technical colleges, 29 community colleges and six 4-year public institutions in Washington. Table 10 indicates that Whatcom County exceeds the state average for all three indices and is ranked within the top ten for each statewide.

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Table 10 - Whatcom County Higher Education Participation Rates, Fall 2008

County rate State Rank State Rate Community and Technical Colleges 5.18% 7 4.41% Public 4-year Institutions 2.09% 10 1.88% All Public Higher Education 7.26% 5 6.30% Source: “Higher Education Trends & Highlights,” February 2009, Washington State OFM

a. Primary and Secondary (K-12) System

Whatcom County is served by eight public school districts:

Bellingham School District serves Bellingham, Chuckanut, Lake Samish, and Sudden Valley. Blaine School District serves Blaine, Birch Bay, and Point Roberts. Concrete School District serves the county's southeast corner including Newhalem and

Diablo. Ferndale School District serves Ferndale, Custer, Lummi Island, and the Lummi Nation. Lynden School District serves Lynden and surrounding areas. Meridian School District serves rural communities between Bellingham and Lynden. Mount Baker School District serves communities along the Mount Baker Highway and

Nooksack River. Nooksack Valley School District serves Everson, Nooksack, and Sumas.

During the 2009-2010 school year, a total of 25,679 children were enrolled in public schools serving Whatcom County. In the 2007-2008 school year, nearly $292-million were spent educating public school children in Whatcom County. Numerous private schools also operate in Whatcom County including Assumption Catholic School, St. Paul's Academy, Lynden Christian Schools, Bellingham Christian Schools, and the Waldorf School.

b. Western Washington University Located in Bellingham, Western Washington University is one of six state-funded, four-year institutions of higher education. The University’s enrollment is approximately 15,000 students, approximately 95 percent of which are undergraduates. About 88 percent of the student body is composed of Washington residents. Western confers various bachelor’s and master’s degrees and offers more than 160 academic programs through its seven colleges and the Graduate School. The University is also home to more than two dozen centers and institutes.

c. Whatcom Community College Whatcom Community College (WCC) is an accredited, comprehensive two-year college serving 11,000 students annually. On its 72-acre campus in Bellingham, as well as through on-line courses, WCC offers transfer degrees, professional and technical training programs, basic education, job skills, and classes through its Community & Continuing Education program. According to the Aspen Institute (April 2012), WCC is rated among the top six community and technical colleges in Washington and is recognized as one of the leading community colleges in the nation. Established in 1967, Whatcom has been accredited by the Northwest Commission on Colleges and Universities since 1976.

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The College offers three degrees:

Associate in Arts and Sciences, designed for students who plan to transfer to a four-year college or university. It is generally accepted as fulfilling the General Education Requirements for most four-year schools in Washington.

Associate in Science, which offers a common core with a variety of science majors. This degree is accepted at many four-year public and private universities in Washington and is designed to enable holders to transfer into most science majors, including engineering, atmospheric science, biology, chemistry and others.

Associate in Liberal Studies, which is designed primarily for students who wish to receive recognition for completion of 90 credits of general college-level learning but who do not plan on transferring to a four-year school.

WCC also participates in Running Start, a statewide partnership between high schools and community and technical colleges in Washington. Running Start offers families significant cost savings as students begin their college careers:

Students may enroll simultaneously in high school and college classes, or solely at the college.

Students receive both high school and college credit for classes completed at the college. Students do not need the permission of the high school to enroll in the program; the student

and parents make this choice.

d. Bellingham Technical College Bellingham Technical College (BTC) was founded in 1957 and is one of only five state technical colleges chartered in Washington. It is accredited by the Northwest Commission on Colleges and Universities. The campus is located on 35 acres overlooking Bellingham Bay, the San Juan Islands and Mt. Baker. BTC serves a diverse population of about 8,000 students in more than 35 associate degree and 43 certificate programs. Students prepare for careers in many fields, including advanced manufacturing, accounting, process technology, culinary arts, nursing and many others. The College’s approach is to provide a high-tech, hands-on, student-centered learning environment. BTC graduates have a job placement rate of 84 percent. The College also participates in Running Start, and it is committed to providing flexible training under contract to private employers to meet their start-up training needs as well as to upgrade the skills of existing personnel.

e. Northwest Indian College Situated on the Lummi Indian Reservation, Northwest Indian College (NWIC) is the only accredited tribal college in the states of Washington, Oregon and Idaho. NWIC traces its roots to the Lummi Indian School of Aquaculture (founded in 1973), a single-purpose institution developed to provide a supply of technicians for employment in Indian-owned and operated fish and shellfish hatcheries throughout the United States and Canada. The College currently awards bachelor’s degrees in Native Environmental Science, Native Studies Leadership and Tribal Governance & Business Management. Associate’s degrees are awarded in

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several fields, including Business and Entrepreneurship, Information Technology and several other fields. Several certificate programs are also offered. The College is accredited by the Northwest Commission on Colleges and Universities, and in 2010 was approved as a baccalaureate degree granting institution. The College’s educational programs have been approved by the Veteran’s Administration as well as the Washington State Higher Education Coordinating Board for the administration of financial assistance for eligible students. It is a member of the American Indian Higher Education Consortium, the American Association of Community Colleges, and the American Council on Education. The educational philosophy of NWIC is based upon the belief that the opportunity of post-secondary education must be provided within the Native American community. The College is committed to the belief that self-awareness is the foundation necessary to: achieve confidence, esteem and a true sense of pride; build a career; create a self-sufficient life-style; and promote life-long learning. It is also committed to the belief that a self-awareness program must include a study of Native American culture, values and history.

II. Infrastructure Supporting Economic Development A. Capital Facilities and Community Infrastructure

1. Water Systems and Supply Whatcom County residents obtain domestic water from public and private water systems. The term "public" refers to the State Department of Health definition and not necessarily to ownership of the system. This distinction is important and can often be confusing. Public systems, as defined by the State, must comply with specific regulations designed to protect the health of people using the supply. Private systems do not have to meet these same requirements. However, the Whatcom County Council, acting as the County Board of Health, adopted the Whatcom County Drinking Water Ordinance in 2002, which established standards for private water systems used for new land development. This ordinance includes siting criteria, such as setbacks from septic tanks and initial water quality sampling requirements. It does not impose ongoing water quality monitoring on private water systems. The complete definition of a public water system can be referenced in WAC 246-290 and WAC 246-291. In general, Health regulations define a public water system as all systems except those serving only one single family residence and a system with four or fewer connections all of which serve residences on the same farm. However, the regulations do allow systems with only two connections to be exempted from State Health rules at the discretion of local/State Health. Whatcom County has taken advantage of this allowance and, in certain circumstances, does not require residential systems with two services to meet public systems requirements. However, two-party wells that are exempt from state rules must still comply with the County’s Drinking Water Ordinance. In 2014, 87 percent of Whatcom County’s population was supplied with potable water by approximately 415 public water systems. The remaining 13 percent of the population obtains its drinking water from private water supplies, including wells, surface water and rainwater catchment systems. The largest purveyor of water in the County is the City of Bellingham. The City draws water from Lake Whatcom and the Middle Fork of the Nooksack River via a diversion pipeline. According to Bellingham’s

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2013 Water System Plan Update, in 2011 the City had 25,011 service connections. The City also has the largest collection of water rights of all purveyors in the County, which should enable it to continue as a major supplier in the future. Public Utility District No.1, which obtains water from the Nooksack River, has the second largest collection of right in the County. The PUD is a public water utility authorized under RCW Chapter 54 which provides retail service within its designated service boundary and has the potential to provide wholesale water on a county-wide basis. It currently provides both direct retail and wholesale water supplies to customers within the County and holds water rights for municipal water supply purposes, including residential, commercial, industrial and agricultural use. Pursuant to state law, the PUD develops and provides water supply within its service area in accordance with authoritative demand and/or population projections. The PUD will consider petitions for service or assistance from all areas in Whatcom County which are not presently claimed by cities, water districts or other purveyors operating within the County. The level of service to be provided to PUD customers requesting service or new supply will be consistent with relevant capital facility and/or land use plans and policies in existence at the time of service extension. Regardless of size, public or private, many water purveyors in Whatcom County face common challenges in meeting existing and future demands. Water quality concerns which have been identified include nitrates, arsenic, bacteria, iron/manganese, sea water intrusion, and pesticides/VOCs. Quantity concerns include legal limitations on supplies and questions regarding actual amounts and depletion of water. New regulatory requirements under the Safe Drinking Water Act, for example, further challenge the ability of purveyors to meet new demands. Meeting existing and future water demands throughout the county will require careful planning and a mesh of land use/zoning with supply availability. Some of the planning tools which exist to help accomplish this include:

The Water Resource Inventory Area (WRIA) 1 Watershed Management Project, including the WRIA 1 Watershed Management Plan;

The various protection and management strategies discussed in the “Water Resource Section” of Chapter 11: Environment in the Whatcom County Comprehensive Plan;

Comprehensive water plans that have been developed by some of the water purveyors;

Capital facilities plans and interlocal agreements developed by the cities and County under the Growth Management Act; and

The Coordinated Water System Plan. With so many uncertainties and so few clear answers, caution is necessary in making water-related decisions. It is likely that much dialogue, coordination, and clear understanding will be necessary to work through a myriad of water-related issues and decisions. Changing priorities, organization, and regulations at state and federal levels make comprehensive decision-making yet more arduous. County staff and elected officials must participate in all processes aimed at quantifying, regulating, or controlling water in any way to protect the best interests of the citizens of Whatcom County. Specifically, the WRIA 1 Watershed Management Project has been initiated to address issues of water quantity, water quality, fish habitat, and in-stream flows. Additionally, Whatcom County created the Water Resources Division of the Public Works Department in 1999 to address water issues. This plan is based on the assumption that agriculture is important to the County as identified in the Visioning Process and that water will be available to serve the agricultural community. The plan also

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assumes that adequate water will be available to serve the proposed Urban Growth Areas. It is recognized that certain actions are needed to ensure supplies to those areas. These actions will be pursued and the Urban Growth Areas will be revisited as part of the review process to determine if the boundaries are consistent with water availability. Identified urban growth areas are served by public water either within an approved water service area or logical service boundary. Water rights are always an issue in planning for adequate facilities. Treaty rights of the tribes, minimum in-stream flows for adequate protection of fish, and use and protection pursuant to state water laws, all affect the ability of purveyors to meet service objectives. It is not the intent of the County to second-guess a projection in an approved or pending plan. The County will review plans periodically to ensure consistency with adopted growth and population projections, and changes in the availability of water which may affect the ability to provide service. Because of concerns about water supply and requirements of state law, development will be contingent on providing evidence of adequate water supplies.

2. Energy The principal suppliers of electricity in Whatcom County are Puget Sound Energy and Public Utility District No. 1. Natural gas is supplied by Cascade Natural Gas. Sustainable Connections’ Energy Efficiency and Renewables Program assists businesses seeking alternatives to carbon-based fuels.

3. Wastewater Treatment Municipalities in Whatcom County operate separate sewage treatment facilities, except for Nooksack, which uses the City of Everson’s treatment plant and Sumas, which sends its sewage to the Joint Abbotsford Mission Environmental Systems (JAMES) Wastewater Treatment Plant in neighboring Abbotsford, British Columbia. The Birch Bay Water and Sewer District is a special purpose district providing water and wastewater services to about 7,500 people in northwest Whatcom County. The Lake Whatcom Water and Sewer District provides sewer service to more than 3,700 residential customers in an 18 square-mile area encompassing Lake Whatcom. Water District 13 operates a sewer system that serves a portion of the Columbia Valley Urban Growth Area. Whatcom County does not currently own, operate or maintain a sewage treatment facility or associated pumping stations or pipelines. Sewage treatment in the unincorporated areas of the County is primarily by septic system. Goal 5T of the 2013 Whatcom County Comprehensive Plan is to “Support development of new sewage treatment facilities, including new pipelines and extensions of existing pipelines, to areas designated for urban-level growth.” The following actions are intended to achieve this goal:

Discourage extension of sewer lines in areas not designated as urban growth areas or Rural Communities, except in those limited circumstances shown to be necessary to protect basic public health and safety and the environment and when such services are financially supportable at rural densities and do not permit urban development.

For those areas designated as Rural Communities and wishing to infill, work with the communities to create sewer and water districts as necessary to manage both utilities. Public water and sewer service shall be limited to areas where existing lot sizes and development patterns make public water and sewer appropriate and shall not be extended outside of the Rural Community.

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Assist sewer and water districts in environmental review and mitigation and in preparing grant applications to obtain package sewer services that can be developed in a phased and cost-effective manner to serve designated Rural Communities.

Support the development of new technology and alternative sewage disposal methods as an alternative to expensive sanitary sewer systems to assure ground water quality is maintained.

4. Solid Waste

According to the Whatcom County Comprehensive Solid and Hazardous Waste Management Plan 2008, solid waste management is a cooperative effort of Whatcom County and the seven incorporated cities, which collectively participate in the Whatcom County Waste Management System. Its 20-year mission, as outlined in the 2008 Plan, is “to facilitate an economically efficient waste prevention, recycling and disposal system that protects human health and the environment for the citizens of Whatcom County [and to] develop, monitor and enforce various federal, state and local government plans, laws, regulations and grants.” Based on this mission the following goals were established:

To reduce, or prevent where possible, the generation of solid and moderate risk wastes and their associated problems through service-oriented, cost-effective actions where prevention or reduction will protect human health, safety and environmental quality.

To solve problems related to solid and moderate risk waste through service-oriented actions that protect human health and safety, and environmental quality.

To provide necessary support for the other two goals, using service-oriented, cost-effective actions.

5. Storm Water Management

Storm water is that portion of rainwater that does not naturally percolate into the ground or evaporate, but flows overland or through pipes, gullies or channels into a defined channel or a constructed infiltration facility. In many cases, storm water is associated with impervious surface in areas where development has taken place. In these areas, replacement of natural drainage systems with built systems results in short and long-term public costs and can lead to environmental degradation, including flooding, erosion, sedimentation, habitat loss, and degradation of water quality. Storm water management is addressed in Chapter 11: Environment of the Whatcom County Comprehensive Plan.

6. Telecommunications The principal provider of land-line telephone service to businesses in Whatcom County is CenturyLink Business. There are also several providers of voice-over-Internet (VOIP) and satellite phone services. Cellular telephone service is provided by AT&T, Sprint, Verizon Wireless and several other companies. Numerous Internet service providers serve commercial and residential customers in Whatcom County.

7. Industrial Properties (The information in this section reflects the availability of industrial land as of July 2014 and is subject to change.)

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Bellingham

Curtis/Slater Roads, 190 available acres.

Hannegan Road Corridor, 127 available acres. This business area has a large concentration of industrial employers in the Irongate Industrial Park and Strider Business Park.

Kline/Kelly Corridor, 39 available acres.

Bennett/Marine Drive, 139 available acres. This area includes Port of Bellingham properties and airport operations

Cordata, 34 available acres. A large developed mixed use area with some light industrial. Whatcom Community College and PeaceHealth clinics are also included in this area.

Pacific Highway/Northwest Corridor, 80 available acres, adjacent to a large planned commercial center on Bakerview Road.

Orchard Street Corridor, 17 available acres. This area is primarily occupied by Bellingham Cold Storage and related facilities.

Iowa/Fraser and Ohio Street Corridors are well developed industrial areas that include Haskell Business Center and existing buildings, with minimal vacant property.

Blaine Total of 114 available acres of property zoned for manufacturing in the City, including:

Gateway Business Park, a 28-acre commercial and industrial complex that was the site of the former Blaine airport as well as other City-owned property.

Blaine Industrial Park, 45 acres of light industrial warehouse area. Cherry Point With a gross area of approximately 7,000 acres, this is the largest contiguous heavy-industrial area in Whatcom County and is home to the BP and Phillips 66 refineries and Alcoa’s Intalco Works aluminum smelter. Several large, developable parcels are available in Cherry Point. Everson The South Everson Industrial Area contains approximately 91 acres off Mission Road surrounding the SELCO Lumber mill within the City, plus another 20 acres in the Everson Urban Growth Area (UGA). Ferndale There are at least 287 acres of available of land zoned for industrial or “general business” use (which allows for industrial use) within the Ferndale UGA, including the following:

Grandview Industrial Park and COPAC Warehouse and Industrial Center, a total of 106 acres containing 200,000 square feet of industrial space adjacent to I-5 on Grandview Road. COPAC is home to several manufacturers and warehouses.

I-5 Industrial Center, a 72-acre, partially-developed business park on the east side of Grandview Road.

The Malloy Area, north of Samson Rope, which includes 144 acres of undeveloped industrial-zoned properties. The area is not currently served by City utilities.

Peace Portal Way, with 147 acres zoned for general business.

The Hovander Area, with about 128 acres suited for a variety of uses. Ferndale Business Park is located here.

The Slater/Sunset/Smith area has a gross area of 464 acres with mixed-use zoning that allows for regional retail, manufacturing and other industrial uses. This is also the site chosen for the new Whatcom County jail.

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Pacific Industrial Park Area, a developed 113-acre site along Pacific Highway with warehousing and commercial business.

Lynden The West Lynden Industrial Area between West Main Street and Birch Bay-Lynden Road encompasses a total of 240 acres, including the planned, 55-acre Lynden Business Park, which will accommodate medical, commercial and industrial uses. Sumas The Sumas Industrial Area has more than 150 acres available in six contiguous parcels, with heavy-haul road access to the Canadian border. For specific information on industrial properties in Whatcom County, please contact the specific local government or the Port of Bellingham Economic Development Division at (360) 676-2500. The Port of Bellingham The Port owns 1,683 acres of property, which includes Bellingham International Airport (BLI), marina tidelands, deep-water marine terminal uplands, privately leased commercial/industrial land and undeveloped property. Additionally, it owns and manages about 1.4-million square feet of space in buildings, including about 800,000 square feet of warehouse/light industrial space. Other Port properties in the County include:

Sumas International Cargo Terminal, a 27-acre facility, much of which is currently in use.

Blaine’s Wharf District, a master-planned development that includes 24 acres of uplands for mixed use, including a marina and marine industrial. Much of the property has existing uses in place.

Airport Industrial Park, with 130 acres, about 96 0f which are still available. An additional 300 developable acres are located on the west side of BLI for future aviation-related uses.

Fairhaven, with 32 total acres largely occupied with marine industrial and water transportation uses.

Squalicum’s 200 acres, with primary industrial uses including cold storage and fish processing. Remaining available development areas are for mixed use/commercial.

Bellingham Waterfront District The Port and the City of Bellingham have joined forces to redevelop 237 acres of vacant industrial property owned by the Port along the City's central waterfront into a thriving, multi-use facility that is expected to draw high-quality industrial, commercial, residential and recreational development. Given the scale of this initiative and its reliance on private equity leveraged by strategic public-sector investments, it is estimated that full development of the site will take several decades. Industrial opportunities include:

The 52-acre, former “log pond” area has been identified for industrial mixed use and is available immediately.

The 25-acre Bellingham Shipping Terminal for deep-water access adjacent to the log pond.

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A 58-acre marine trades area that will be developed over time for maritime uses. Fish processing, boat haul-out and marine repair businesses currently operate in this area.

B. Public Services and Facilities 1. Fire Protection

Fire protection is provided by 13 Whatcom County Fire Districts, the Bellingham Fire Department and the Lynden Fire Department. A Mutual Aid Agreement between the City of Bellingham and Whatcom County is in place to facilitate expeditious cooperation in the event of a serious emergency situation in the County.

2. Law Enforcement Independent police departments serve all of the incorporated cities in Whatcom County except for the City of Nooksack, which is protected by the Everson Police Department through an interlocal agreement. The Whatcom County Sheriff’s Department serves the unincorporated portions of Whatcom County, and District 7 of the Washington State Patrol (WSP) includes Whatcom County. District 7 has a full-service Crime Laboratory and Communications Center as well as personnel assigned to it from WSP’s Commercial Vehicle Division Enforcement Bureau, Criminal Investigation Division, Fire Protection Bureau, Investigative Assistance Division, and the Homeland Security Division. The County’s five international ports-of-entry and the frontier along its border with British Columbia are protected by U.S. Customs and Border Protection (CBP), the largest law enforcement agency within the Department of Homeland Security. CBP’s Office of Field Operations provides security at each of the ports-of-entry while the U.S Border Patrol performs its “line watch” of the border.

3. Sanitation Services Three sanitation companies provide waste material (trash and recyclables) handling services to cities in Whatcom County. The cities of Bellingham and Ferndale and most of the rural county have contracts with Sanitary Service Company, Inc. for the removal of waste and recyclables. Blaine Bay Refuse serves the City of Blaine, while Everson, Lynden, Nooksack and Sumas are served by Nooksack Valley Disposal & Recycling, Inc.

4. Medical Facilities PeaceHealth St. Joseph Medical Center in Bellingham is Whatcom County’s only hospital. It is a not-for-profit organization founded in 1891 by the Sisters of St. Joseph of Peace, who continue today as sponsors of the PeaceHealth system that serves communities in Washington, Oregon and Alaska. PeaceHealth St. Joseph has been recognized as a Top 100 Hospital in America and as a top-ranking facility for patient quality initiatives in Washington. The hospital has 253 beds, 2,600 employees and a medical staff of more than 400 physicians. It is accredited by the Joint Commission on the Accreditation of Healthcare Organizations. Among the medical services it provides are:

Cardiovascular services

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Joint replacement Stroke Program Cancer Center, including radiation therapy, chemotherapy and comprehensive education and

support services for cancer patients and their families Haggen Family Emergency & Trauma Center Neurosurgery Cascade Brain & Spine Center Behavioral Health including inpatient psychiatric and chemical dependency treatment Childbirth Center Pediatrics Unit Intensive Care Unit Inpatient Physical Rehabilitation Center General and specialized surgery

The County is also served by dozens of private and not-for-profit clinics.

5. Parks and Recreation Whatcom County is home to numerous parks, trails, natural areas and preserved spaces. The North Cascades National Park and Ross Lake National Recreation Area, partially located in eastern Whatcom County, contain some of America’s most beautiful and dramatic scenery. Three Washington State Parks – Birch Bay, Larabee and Peace Arch – are also located in the County. Whatcom County itself has a system of 36 parks and trails, and in 2014 it acquired an additional 8,800 acres of forest lands around Lake Whatcom which were conveyed from the Washington Department of Natural Resources, which are envisioned to provide passive recreational opportunities and watershed protection for Lake Whatcom. The cities of Bellingham, Ferndale and Lynden each have a parks department as part of their city government, while Blaine, Everson and Sumas own, maintain and operate parks within their jurisdictions.

C. Transportation System

1. Transportation Planning In accordance with urban transportation planning requirements imposed by the Code of Federal Regulations, the Whatcom Council of Governments serves as the designated Metropolitan Planning Organization (MPO) for the Bellingham Urbanized Area. An MPO is required in any urbanized area with a population of 50,000 or more for that region to receive federal transportation funding. The U.S. Department of Transportation has promulgated guidelines to ensure that a “continuing, cooperative and comprehensive” transportation planning process exists to meet established federal, state and local mobility goals. Among the principal products required of an MPO are a metropolitan transportation plan, a Transportation Improvement Program (TIP) and an annual schedule of funded planning activities known as the Unified Planning Work Program. With the codification of the Washington State Growth Management Act of 1990, Regional Transportation Planning Organizations (RTPOs) were established and WCOG was designated as the RTPO for Whatcom County. The principal responsibility of an RTPO is to prepare and regularly

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update a regional transportation plan. Since metropolitan and regional transportation plan requirements share common elements, WCOG has combined these plans into one document, known as the Whatcom Transportation Plan. To ensure that metropolitan and regional transportation planning are carried out in a coordinated process that minimizes unnecessary duplication of work and oversight, the MPO and RTPO policy boards have been merged into the Whatcom Transportation Policy Board (WTPB). In addition to governing the metropolitan and regional transportation planning processes, the WTPB is charged with allocating the combination of federal, state and local funds to the numerous projects contained in the TIP. The WTPB may also request WCOG staff to perform analyses or other research to assist them in understanding the often complex issues they are called on to address.

2. Freeway and Road Maintenance Road construction and maintenance in Whatcom County is the responsibility of several jurisdictions depending on the facility in question. Interstate 5 and state roads are the responsibility of the Washington State Department of Transportation (WSDOT). Whatcom County is responsible for all other roads, except those under the jurisdiction of the seven cities. The National Park Service and U.S. Forest Service assume responsibility for road construction and maintenance in the various federal lands in central and eastern Whatcom County. 3. Pedestrian, Bicycle and Public Transportation The Whatcom Transportation Authority (WTA) provides public transportation services throughout Whatcom County, including 30 fixed routes, specialized transportation (paratransit) and a commuter vanpool program. WTA serves the City of Bellingham as well as Ferndale, Lynden, Blaine/Birch Bay, the Lummi Nation, Sudden Valley, Kendall, Everson, Nooksack and Sumas. It also cooperates with Skagit Transit in neighboring Skagit County to provide service between Bellingham and Mount Vernon. WTA plays a major role transporting students to and from Western Washington University as well as to three other local colleges, middle schools and high schools. WTA’s fleet includes 60 full-size buses (including eight hybrid electric buses), 37 specialized transportation minibuses, and 39 commuter vans. It also operates four transit centers: Bellingham and Cordata stations in Bellingham, Ferndale Station and Lynden Station. From 2002 to 2012, WTA’s ridership increased by 84 percent. It provided 4.9-million fixed-route boardings – approximately 17,000 per weekday – in 2012. WCOG’s Whatcom Smart Trips program helps community members make more of their trips by walking, bicycling, sharing rides or riding the bus. The program is administered and operated by WCOG with the support of WTA, WSDOT and the City of Bellingham. Whatcom Smart Trips is a collection of programs and tools that assist people in using sustainable modes of transportation and maximizing the use of sustainable transportation infrastructure, especially the City of Bellingham’s growing network of bicycle lanes.

4. Aviation Bellingham International Airport (BLI), operated by the Port of Bellingham, is located three miles northwest of Bellingham. It is the third-largest commercial airport in Washington, behind Seattle-

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Tacoma (SeaTac) and Spokane international airports, and is one of the fastest growing in the United States, serving more than 1.2-million passengers annually. Alaska Airlines, Allegiant Air, Frontier Airlines, San Juan Airlines and Northwest Sky Ferry provide commercial service to destinations including Las Vegas, Honolulu, Los Angeles, Phoenix and Denver, as well as to SeaTac for connecting domestic and international flights. BLI is also one of two general aviation airports serving Whatcom County, along with Lynden Municipal Airport.

5. Marine Whatcom County is served by the Port of Bellingham. The Port was established in 1920 to bring the harbor under the administration of a single organization in order to address the confusing array of docks, including those owned by private lumber mills, shipyards and canneries. The Port serves the marine trades and fishing industry with a variety of services including ship- and boatyards, a large dry dock, floating cranes and more than 200 commercial slips. The Bellingham Shipping Terminal (BST) specializes in break bulk and clean bulk cargos. With 1,250 feet of dock space, more than 85,000 square feet of covered storage and 35 acres of available upland, BST is a full-service marine terminal that has the flexibility to customize its services to meet its clients’ needs. BST is also available as a long-term lay-up facility for large ocean-going vessels of all kinds. Other services provide by BST include:

Stevedoring/longshore services

Fuel

Potable water

Voyage repairs

Ship stores

Tank cleaning

Tug services

Vacuum truck

Security

Shore Power Squalicum Harbor in Bellingham is a full-service marina on the north shore of Bellingham Bay. It is the home port to more than 1,400 commercial and pleasure boats, including a large charter boat fleet. The newly renovated Blaine Harbor has nearly 600 state-of-the-art boat slips for commercial and pleasure boats. The harbor has permanent moorage as well as more than 700 feet of visitor moorage. Bellingham Cruise Terminal is located in the City's Fairhaven District. It is the southern terminus of the Alaska Marine Highway System. Seasonal foot ferries and charter vessels also provide connections to the San Juan Islands. The Cruise Terminal provides safe and convenient passenger facilities for more than 200,000 passengers each year. Whatcom County provides ferry service from Gooseberry Point to Lummi Island for walk-on passengers and vehicles on the County’s ferry boat, the Whatcom Chief. The City of Blaine’s historic 17-passenger ferry MV Plover carries passengers during the summer months from the City's main dock across Drayton Harbor to the Semiahmoo resort dock.

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The Gateway Pacific Terminal (GPT) project proposed by Pacific International Terminals, Inc., calls for a multi-user, import/export marine terminal for bulk, break-bulk and other marine cargoes. The project would include new rail loop tracks, covered and open terminal storage areas, and a pier and trestle connection to the terminal storage area. The project area is in the Cherry Point Industrial UGA, between the BP Refinery to the north and the Intalco Works to the south. At full capacity, GPT would export 54 million metric tons per year of bulk commodities – including up to 48 million metric tons of coal annually – and could generate 18 train trips (nine round trips) per day, and 18 or more deep-draft “Capesize” vessel trips per week. Whatcom County, the Washington State Department of Ecology and the Army Corps of Engineers – serving as co-leads – are producing a joint Environmental Impact Statement (EIS) for the proposed GPT as well as the associated Burlington Northern Santa Fe Railway Custer Spur track expansion. The County and Ecology must follow the State Environmental Policy Act while the Corps must follow the National Environmental Policy Act. The joint process enables the co-lead agencies to avoid duplication when the two laws overlap and to meet each statute’s separate requirements.

6. Railroad Amtrak’s Cascades line offers two daily northbound trips from Bellingham’s Fairhaven Station to Vancouver, B.C., and two southbound trips to Seattle, as well as a midday Thruway Bus trip to Seattle to connect to other Amtrak services. The Burlington Northern & Santa Fe (BNSF) Railway operates freight rail lines in Whatcom County. BNSF’s principal West Coast rail line runs through Bellingham, Ferndale and Blaine. There are also spur lines serving the Cherry Point industrial area, the Bellingham Shipping Terminal, the State Route 9 corridor between Sumas and Sedro-Woolley, and Lynden.

7. U.S. – Canada Border The International Mobility and Trade Corridor Program (IMTC) is a U.S.-Canadian coalition of business and government agencies that identifies and promotes improvements to mobility and security for the five border crossings that connect Whatcom County and the Lower Mainland of British Columbia, which together are known as the Cascade Gateway. The Cascade Gateway ports of entry are among the busiest and most economically important along the entire border. The goals of the IMTC program are to:

Facilitate a forum for ongoing communication among agencies on both sides of the border that affect regional, cross-border transportation, safety and security.

Coordinate planning of the Cascade Gateway as a transportation and inspection system, rather than as individual border crossings.

Improve and distribute traffic data and information. Identify and pursue improvements to infrastructure, operations, and information technology.

Since 1997, IMTC has served as a model of international cooperation and coordination on border issues and has helped secure approximately $40-million (USD) from U.S. and Canadian partners to pursue the goals listed above. More than 50 organizations from both sides of the border participate in IMTC.

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D. Media The Bellingham Herald is Whatcom County’s only locally-based daily newspaper; it offers print and on-line editions. There are also several weekly and monthly newspapers serving specific areas of the County. The Ferndale Record focuses on Ferndale, The Northern Light serves Blaine and Birch Bay, The Lynden Tribune serves Lynden and the All Point Bulletin serves Point Roberts. There are also two publications focused on business in Whatcom County: the Bellingham Business Journal and Business Pulse magazine. Whatcom County is part of the Seattle television market, although it is home to two broadcast television stations licensed in Bellingham. KVOS Channel 12 has been on the air since 1953 serving northwest Washington as well as the Lower Mainland and Vancouver Island in B.C. KBCB Channel 24 is a ShopHQ (formerly “ShopNBC”) station, although as of October 2014 its owner – Venture Technologies Group LLC – had accepted an offer from 21st Century Fox, Inc. to purchase it. Bellingham TV Channel 10 is operated by the City of Bellingham on Comcast to provide residents and others with information on City government and activities. The County is served by three local AM and six local FM radio stations, and it also receives clear broadcasts from stations in Metro Vancouver as well as Victoria, B.C.

E. Grant and Finance Resources for Local Governments and Businesses Like many government-funded activities, financial support for economic development has declined with the sharp downturn in the U.S. economy since about 2009. However, resources are still available to provide assistance to local governments and other agencies engaged in economic development activities.

1. State and Federal Agencies A number of Washington State and federal agencies provide technical assistance, coordination, training and funding to assist community and economic development efforts. These are primarily programs that provide direct assistance to governmental units and qualified not-for-profit organizations engaged in economic development: State Agencies:

Washington State Department of Commerce, Community Economic Revitalization Board

Washington State Public Works Board

Washington State Department of Transportation

Washington State Transportation Improvement Board

Washington State County Road Administration Board

Federal Agencies:

Department of Commerce, U.S. Economic Development Administration

Department of Agriculture, Rural Development

Department of Housing and Urban Development, Community Development and Planning

U.S. Small Business Administration loan programs

U.S. Department of Labor

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U.S. Department of Transportation

U.S. Bureau of Indian Affairs

U.S. Citizenship and Immigration Services’ EB-5 Foreign Investment Program, operated locally by the Whatcom Opportunities Resource Center.

2. Local Public Finance

Local resources available to support economic development include:

Whatcom County Economic Development Investment Program

General Obligation and Revenue Bonds

Local Improvement Districts

Public Facility Districts In addition, some cities use special fees (impact fees, business taxes, etc.) for projects and capital improvements. Washington’s tax code governs how communities can utilize these resources.

3. Incentives for Business Development In Washington there are several different State tax incentive programs available to businesses, including the following:

Machinery and Equipment Sales and Use Tax Exemption

Rural County/Community Empowerment Zones Business and Occupation (B&O) Credit for New Employees

Sales/Use Tax Exemption on Purchases of Server Equipment and Power Infrastructure for Use in Eligible Rural Data Centers

B&O Tax Exemption for Manufacturing Fresh Fruit and Vegetables, Dairy and Seafood Products

Sales/Use Tax Exemption on Machinery and Equipment Used to Generate Electricity Using Renewable Energy

Washington Customized Employment Training Program (B&O Tax Credit)

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SECTION 5: EXISTING PLANS This CEDS draws from the goals and strategies contained in plans prepared by those entities within the region which are engaged in economic development or provide support for that process: Whatcom County, the seven cities, the Port, the Northwest Economic Council and various other non-governmental organizations. While numerous plans devoted specifically to economic development have been described in this CEDS, other plans and projects also impact efforts to grow the regional and local economies. A. Local Comprehensive Plans The Washington State Growth Management Act (GMA) was adopted by State Legislature in 1990 to address the threat that uncoordinated and unplanned growth posed to the environment, sustainable economic development and the quality of life in Washington. It is codified in Chapter 36.70A of the Revised Code of Washington. The GMA requires state and local governments to manage Washington’s growth by identifying and protecting critical areas and natural resource lands, designating urban growth areas, preparing comprehensive plans and implementing them through capital investments and development regulations. This approach to growth management is unique among states. Rather than centralizing planning and decision-making at the state level, the GMA built on Washington’s strong traditions of local government control. The GMA established state goals, set deadlines for compliance, offered direction on how to prepare local comprehensive plans and regulations and set forth requirements for early and continuous public participation. Within the framework provided by the mandates of the GMA, local governments have many choices regarding the specific content of comprehensive plans and implementing development regulations. Whatcom County worked with all seven of its cities to complete countywide planning policies in 1993, which have subsequently been revised. All local planning jurisdictions adopted these policies, which provide the framework for the development of the County and city comprehensive plans. Policies regarding economic development encourage the development and expansion of businesses to provide family-wage jobs; ensure an adequate supply of land and infrastructure to support industrial development, and; retain natural resource-based employment, including agriculture, forestry and mining. These policies also emphasize the protection of the County’s environment and overall quality of life. Whatcom County and all seven of its cities have comprehensive plans. There are also “sub-area” plans for unincorporated Birch Bay and Point Roberts. As of April 2014 the seven cities were in compliance with the requirements of the GMA; Whatcom County was one of 15 counties in Washington that was not. This is the result of findings by the Washington State Growth Management Hearings Board upholding assertions made in a petition that the amendments and development regulations adopted by the County to implement the Comprehensive Plan were not compliant with GMA with respect to its Rural Element. The County is actively working to bring its Comprehensive Plan into compliance. The GMA lists 13 planning goals, each of which must be considered in local plans. Comprehensive plans are intended to support the GMA’s economic development goal to:

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“Encourage economic development throughout the state that is consistent with adopted comprehensive plans; promote economic opportunity for all citizens of this state, especially for unemployed and for disadvantaged persons; promote the retention and expansion of existing businesses and recruitment of new businesses; recognize regional differences impacting economic development opportunities, and; encourage growth in areas experiencing insufficient economic growth, all within the capacities of the state's natural resources, public services, and public facilities.” Presently, four of the eight jurisdictions’ comprehensive plans included a section addressing economic development, although many related elements (land supply, infrastructure to support economic development, etc.) are found in other sections of those plans. Table 11: Whatcom County Growth Management Plans

Approved or Includes economics or economic Jurisdiction last amended development section? Whatcom County 2014 YES Bellingham 2006 YES (added to Plan in 2013) Blaine 2006 YES Everson 2004 NO Ferndale 2012 YES Lynden 2005 YES Nooksack 2004 NO Sumas 2004 NO Sub-areas: Bellingham Urban Fringe 2009 NO Birch Bay 2009 YES Foothills 2011 YES Lummi Island 2009 NO Pt. Roberts 2001 YES As required by the GMA, Whatcom County and the seven incorporated cities in the County are in the process of, or are preparing to, update their comprehensive plans, which must be completed by 2016. B. Other Plans and Projects In addition to the various economic development and comprehensive plans already discussed, several other plans and projects have been completed or are underway that impact – to one degree or another – economic development in Whatcom County: Port of Bellingham

Bellingham International Airport Master Plan Update (2004)

Blaine Wharf District Master Plan (2007)

Bellingham's Waterfront District Sub-Area Plan (2013)

Fairhaven Comprehensive Scheme of Harbor Improvements (2008)

Comprehensive Park, Recreation and Public Access Plan (2011)

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Whatcom Council of Governments

Whatcom Transportation Plan (2012)

Bakerview to Grandview Sub-regional Transportation Analysis (underway 2014)

Employment Access and Coordinated Human Service Plan (2014)

Border Circulation Analysis (2010)

NEXUS Marketing (2012)

FAST Enhancements (underway 2014)

Border Access Improvements: FAST and NEXUS Lanes (2007)

Border Data Warehouse (underway 2014)

Advanced Traveler Information Systems (underway 2014) Northwest Workforce Council

Northwest Workforce Council 2013-2017 Local Integrated Workforce Plan (2013) Miscellaneous

Kendall/Columbia Valley Connectivity Plan (pending notice of award of WSDOT funding) – This plan would address the lack of pedestrian and bicycle access in the Kendall area. Partners include Whatcom County, WSDOT, National Park Service, WCOG and community groups.

Glacier Trail – This project would address a number of safety and mobility concerns along SR 542 (Mt. Baker Highway) near residential and tourist areas in central Whatcom County.

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SECTION 6: WHATCOM COUNTY’S PREFERRED ECONOMIC FUTURE AND ACTION PLAN The preferred economic future for Whatcom County is drawn from Whatcom Futures: Toward a Sustainable Economy. The development of Whatcom Futures began in 2010, when the Whatcom Community Foundation (WCF) received an “Innovation Fund” grant from The Convergence Partnership, a collaboration of philanthropic organizations from across the nation that focuses on creating healthy communities. Using this grant, WCF engaged the Northwest Economic Council (NWEC) to take the lead in developing Whatcom Futures. NWEC is a 501(c)(3) not-for-profit corporation established in 1984 to facilitate economic development in Whatcom County. In 2012, more than 90 leaders and representatives from businesses, local governments and not-for-profit organizations helped shape the visions that constitute Whatcom Futures. This effort was also strongly influenced by public input, which was gathered in a variety of ways, including community forums in Kendall, Lynden, Blaine and Bellingham that drew more than 100 Whatcom County residents and generated candid, thoughtful ideas about draft vision statements and their significance to the participants’ specific communities as well as to the County as a whole. This input was central to the development of Whatcom Futures. Based on three overarching vision statements and accompanying action items, NWEC developed this preferred economic future for Whatcom County using an approach that considered land use, community health and equitable access to economic opportunity. These visions for a prosperous and sustainable economic future reflect the Region’s shared values and the unique physical and geographic characteristics that make Whatcom County such a special place to live. They should inform the decision-making processes of those entities responsible for economic development and associated activities such as land-use planning and public health, including Whatcom County government, the seven cities within it and other entities from both the private and not-for-profit sectors. Economic development, land-use planning and community health constitute the three linked elements of a vibrant economy and are the foundation of the Region’s preferred economic future. They can be described as follows.

Economic development involves the establishment of policies that support a region’s business sector, allowing for the creation of wealth, provision of jobs, tax revenue to support local governments and an improved quality of life for individuals and the community.

Land-use planning is concerned with the allocation of land for housing, businesses, schools, recreation, transportation, infrastructure, agriculture and everything else that encompasses the built environment.

Community health embraces the total health and wellbeing of the people in our region, including access to needed health services (physical, mental and dental), healthy foods, recreation and exercise opportunities, sustainable employment, affordable housing and safe neighborhoods.

By properly coordinating these elements, Whatcom County will be well positioned for sustained economic growth that provides opportunity for all who want to work while maintaining environmental quality and facilitating healthy outcomes for all of the County’s citizens.

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Indeed, these elements are visible in the three vision statements that constitute the County’s preferred economic future:

Whatcom County values its business community, which is principally responsible for the continued growth in jobs and incomes in the region.

Whatcom County and its constituent communities have vibrant and dynamic economies where the region’s abundant natural resources are cherished and protected.

Whatcom County has an outstanding quality of life where all residents have opportunities to thrive and the support they need to seize those opportunities.

While not part of this CEDS, it should be noted that the Community Health Improvement Plan (CHIP) is the companion to Whatcom Futures. The Whatcom Community Foundation provided financial support to enable the United Way of Whatcom County, the Chuckanut Health Foundation, St. Joseph PeaceHealth Medical Center, the City of Bellingham and Whatcom County to partner to address several critical concerns identified in the Community Health Assessment. The priorities of CHIP emphasize three areas essential to improving the community’s health: investing in the foundations of lifelong physical and mental well-being in our youngest children; creating communities that foster health-promoting activities; and broadening health care to promote wellness outside of the medical system. An outline of the Community Health Improvement Plan can be accessed at http://www.co.whatcom.wa.us/health/ch/pdf/communityhealthimprovementplanoutline.pdf.

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TABLE 12: VISION STATEMENTS AND ACTION ITEMS

Vision Statement No. 1. Whatcom County values its business community – which is principally responsible for the Region’s strong job market and the living wages it provides – and is committed to its growth.

Identify, preserve and invest in our infrastructure and other physical assets to enhance the economic competitiveness of the region.

Support the retention, growth and attraction of businesses in the region.

Understand the role of Whatcom’s manufacturing and heavy industrial sectors in diversifying the regional economy and providing living-wage jobs for the County’s skilled blue-collar workforce.

Improve and expedite permitting processes so that prospective businesses will have a clear understanding of their requirements and more certainty with regard to the timeline for approval.

Recognize and enhance the economic linkages between Whatcom County and our neighbors in the Lower Mainland of British Columbia.

Encourage and support the enhancement of Whatcom County’s workforce.

Vision Statement No. 2. Whatcom County and its constituent communities have vibrant and dynamic economies where the region’s abundant natural resources are cherished and protected.

Foster economic prosperity in a way that promotes the creation of opportunities that align with our shared desire to enjoy and sustain our natural environment.

Support the efforts of Whatcom County’s smaller communities to grow their economies while retaining the rural character cherished by their residents.

Understand that the Region’s environmental resources are important economic assets that draw people here and are integral to Whatcom County’s strong sense of place.

Ensure that the County’s land-use plans and those developed by the region’s local governments – as well as the regional transportation plan developed by the Whatcom Council of Governments – are informed by adopted economic development goals.

Encourage local governments, citizens’ groups and businesses to work together in developing economic strategies and plans.

Vision Statement No. 3. Whatcom County has an outstanding quality of life where all residents have opportunities to thrive and the support they need to seize those opportunities.

Ensure that approved land-use plans and economic strategies consider the health and quality of life of all of Whatcom County’s residents.

Support health initiatives that enhance the physical and emotional well-being of Whatcom’s residents.

Advocate for and support the region’s educational institutions, especially its university and colleges.

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Vision Statement No. 1. Whatcom County values its business community – which is principally responsible for the Region’s strong job market and the living wages it provides – and is committed to its growth. A. Identify, preserve and invest in our infrastructure and other physical assets to enhance the economic

competitiveness of the region. The importance of functional, well-maintained infrastructure to successful economic development cannot be overstated. Businesses and residents rely on the region’s highways, power grid, water and sewer systems and telecommunications network – among others – to meet their own needs and, equally as important, the needs of their customers. Inadequate and/or failing infrastructure can disrupt commerce in the short term – as was illustrated following the collapse in May 2013 of the bridge that carries Interstate 5 over the Skagit River – and impedes investment and economic growth over the long term. Responsibility for the construction and maintenance of infrastructure is assigned to both the public and private sectors, and with regard to the former is dispersed among local governments, water and sewer districts, the Public Utility District, Whatcom County and the State. Despite the inherent difficulty of coordinating infrastructure improvements and maintenance among the disparate entities responsible for those activities, such coordination would be beneficial, especially if it is informed by the region’s adopted economic development goals. A single countywide, multi-jurisdictional and multi-organizational inventory of infrastructure and other critical assets should be developed and mapped using a geographic information system (GIS), following all requisite security protocols. Such an inventory should include:

Principal and minor arterial roads

Existing and planned industrial parks and the services available by location (freight rail access, deep-water access, water and sewer, etc.)

Industrial and commercially-zoned land

Water and sewer systems, and the capacity of those systems

Port and other maritime facilities

Commercial and general aviation airports

Electrical distribution capacity

Areas served by “green” energy (hydropower, solar, geothermal, wind, etc.)

Areas with broadband Internet access

Areas with reliable cellular phone service

PeaceHealth St. Joseph Medical Center and other healthcare providers

Bellingham Technical College, Northwest Indian College, Western Washington University and Whatcom Community College

Bicycle lanes and maintained trails

Public libraries and services

Parkland and recreational facilities. A GIS-based inventory would facilitate a comprehensive and coordinated approach to prioritizing infrastructure improvements across jurisdictional and organizational boundaries. For example, it could identify opportunities where existing or planned facilities could be shared, which would save limited public funds and maximize efficiency. Such an inventory would also aid business recruitment

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efforts by identifying locations for prospects, either on demand or in advance as part of a strategic planning process. B. Support the retention, growth and attraction of businesses in the region. Whatcom County benefits from a relatively diversified economy that includes retail, manufacturing, resource extraction, higher education, agriculture, tourism, health care and more. Among its eleven largest employers are representatives of the private (Alcoa Intalco Works, BP), public (Western Washington University, Bellingham City School District, Whatcom County) and not-for-profit (PeaceHealth St. Joseph Medical Center) sectors. Of course, as in most places, small businesses are the mainstay of the regional economy, and those in Whatcom County offer a remarkable variety of products and services. Maintaining a business is never easy – even in the best of times – and growing one is even harder. With the ongoing economic downturn that began in 2008, businesses of all sizes have found it even more difficult than usual to keep their doors open, and unfortunately, many have failed. Many more, though, are weathering the storm and some have even prospered, which speaks to the diligence and resourcefulness of Whatcom County’s business owners, managers and workers. Keeping businesses here that currently call Whatcom home must be a priority at all levels of government. There should be open and regular dialogue between business owners and local and County officials in a spirit of cooperation, along with a recognition that a healthy business climate is essential to maintaining Whatcom’s outstanding quality of life. Additionally, local governments, along with the Bellingham/Whatcom Chamber of Commerce & Industry and other business advocacy organizations, should encourage the region’s State and Federal legislators to avoid imposing unnecessary regulations and other burdens on business, especially in such a challenging economic climate. Of course, programs that help existing businesses grow or attract new businesses to the region must be maintained and strengthened, and should build on the spirit of entrepreneurship that has spawned so many business success stories in Whatcom County. This function rests primarily with the Port of Bellingham, which serves as the designated “Associate Development Organization” for the County. The efforts of the Port should be supported and augmented by resources from the County and other local governments, the Chamber, the Northwest Economic Council and other organizations with the tools and capacity to assist in this critically important endeavor. C. Understand the role of Whatcom’s manufacturing and heavy industrial sectors in diversifying the

regional economy and providing living-wage jobs for the County’s skilled blue-collar workforce. Whatcom County has a long, rich history as an industrial area, which continues to this day. Indeed, despite the long-term trend of manufacturing leaving the U.S., Whatcom has retained a significant industrial and manufacturing sector. That small organic farms and an aluminum smelter can coexist in the County illustrates the diversity of Whatcom’s economy as well as the range of opportunities for workers. Skilled blue-collar workers in particular benefit by the presence of manufacturing. With the relatively high cost of living in Whatcom County, manufacturing and industrial employers are among the few that provide jobs with wages that enable blue collar workers to live in the County. In fact,

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Bellingham Technical College’s Engineering and Advance Manufacturing programs offer degrees that are in demand by industries in Whatcom – and nationwide – with starting salaries for new graduates in excess of $50,000 a year. Manufacturers also support the regional economy by sourcing materials and other supplies from smaller local businesses, through the various taxes that they pay and by the financial support they provide to regional not-for-profit organizations. D. Improve and expedite permitting processes so that prospective businesses will have a clear

understanding of their requirements and more certainty with regard to the timeline for approval. Clarity and consistency in land-use permitting are highly valued by business prospects, but the perception of that process in some of the jurisdictions in the County is that it is difficult to navigate, presents unanticipated roadblocks and that enforcement is too subjective. Whether this is the reality, merely a perception or something in between, it nonetheless impedes the region’s business recruitment, retention and expansion efforts by casting the County as being unfriendly to business. Land-use regulations and permitting processes should be reviewed regularly by all of the region’s jurisdictions to ensure that they are reasonable, clearly written and predictable. They should be developed to be as permissible as possible while still ensuring that public safety and environmental quality standards are met. The County and cities should also consider a service model whereby applicants are assigned a specific staff person who guides them through the process, similar to a case manager. This individual would be the applicant’s sole point of contact, which would reduce confusion, frustration and the time between starting the application process and the granting of permits, since he or she would also be responsible for bringing together all of the various departments involved in the permitting process. Given the importance to local governments of economic development for tax revenue generation and maintaining the quality of life, there should be active oversight of the process at the highest levels of the various governments. E. Recognize and enhance the economic linkages between Whatcom County and our neighbors in the

Lower Mainland of British Columbia. Whatcom County is blessed by geography, and no more so than by its adjacency to the Vancouver metropolitan area. Thanks to bi-national cooperation facilitated principally through WCOG’s International Mobility & Trade Corridor (IMTC) Program, the international border is porous enough to allow for a robust infusion of Canadian trade dollars into the County from Lower Mainlanders attracted to the lower cost of goods here and, in recent years, an exchange rate that favors Canadian shoppers. The convenience of Bellingham International Airport (BLI) to much of the Lower Mainland combined with the lower cost of plane tickets in the U.S. have contributed to making BLI the fastest-growing airport in the country. Similarly, Whatcom County’s lower commercial real estate costs compared to those in B.C. – as well as the enhanced access to the U.S. market that a Canadian company enjoys with a U.S. location – has resulted in significant Canadian business investment in the County. Clearly, there can be no doubt that Whatcom’s economy would be significantly weakened without the ongoing participation in it of our Canadian neighbors. All economic development plans must recognize the importance of the Lower Mainland to Whatcom County and all of its communities and foster that relationship. Ongoing analysis of the efficiency and security of the County’s five border crossings must continue under the auspices of the IMTC

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Program, and when barriers that impede trade are identified they should be addressed as quickly as possible. Proposed legislation that would likely restrict trade between the world’s two largest trading partners – originating on either side of the border – should be carefully tracked, and when such legislation coming from Congress is deemed to be onerous or unnecessary, vigorously opposed. Consideration should also be given to establishing a Whatcom County “trade mission” in B.C. to promote business investment in the County. F. Encourage and support the enhancement of Whatcom County’s workforce. The availability of a motivated and skilled workforce is critical to the economic well-being of Whatcom County. Workforce development programs promote educational attainment and facilitate the acquisition of skills that allow workers the opportunity to pursue satisfying careers in Whatcom County. Collaboration among workforce development organizations, economic development agencies and the region’s educational institutions at all levels is necessary to achieve the dual goals of having a skilled workforce that will draw employers to the region and enabling people to build productive and satisfying lives here. As the County’s economy continues to grow and evolve, this coordination must continue to ensure that the pipeline of students graduating from the County’s educational institutions is well matched and prepared for the types of jobs employers will need. Vision Statement No. 2. Whatcom County and its constituent communities have vibrant and dynamic economies where the region’s abundant natural resources are cherished and protected. A. Foster economic prosperity in a way that promotes the creation of opportunities that align with our

shared desire to enjoy and sustain our natural environment. Whatcom County is a special place characterized and largely defined by its natural environment, which includes the mountains of the North Cascades, scenic rivers and streams, dense forests, remarkably productive farmland, bays and even a volcano. These ecosystems are home to a diverse assortment of wildlife, including bald eagles, orcas, mountain goats, cougars and moose. Without question, Whatcom’s abundance of natural assets and its wealth of outdoor recreational opportunities are internationally recognized and draw people to the County. Snowboarding, paddling, snow-machining, fishing, sailing, climbing, hiking, hunting; all of these activities and more are available in the County, and it is entirely possible to engage in more than just one of them in a single day. It is not hyperbole to call Whatcom an outdoorsman’s paradise. Of course, most people need a job that provides a salary or pays wages that are high enough to enable them and their families to live in such a special place, and a sufficient number of those jobs will only be available if there is a healthy and growing local economy. In addition to the jobs it creates, a strong local economy is essential to fund the operation and maintenance of essential infrastructure and to provide other critical community services. Growing and diversifying Whatcom County’s economy is essential, but that growth must not occur at the expense of those attributes that make people want to come and continue living here. Offices, research facilities, retail, tourism and industry – including heavy industry – can and should be accommodated in the County, but great care must be taken to ensure that those enterprises will be responsible stewards of Whatcom’s environmental assets.

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B. Support the efforts of Whatcom County’s smaller communities to grow their economies while retaining the rural character cherished by their residents.

Despite the presence of Bellingham – Washington’s twelfth largest city – Whatcom is a rural county. In 2013, about 43 percent of Whatcom’s residents lived in unincorporated areas of the County, and when the population of the four eastern cities of Everson, Lynden, Nooksack and Sumas is added to that of the unincorporated areas, that figure rises to about 52 percent. In fact, most of the communities in the North Cascades foothills – such as Acme, Deming, Glacier and Maple Falls – have only a few hundred residents each. Yet it is this rural character that draws so many people to Whatcom County, and it is cherished not just by the residents of those small communities but by almost everyone who calls Whatcom home. Preserving the rural, agricultural character of the County’s small communities is a widely-held value in Whatcom. Although farming cannot provide enough living-wage jobs for the residents of those areas, preserving productive farmland and encouraging its cultivation will maintain the County’s agricultural heritage while supporting tourism and providing locally-grown produce for the Region’s food processing industry, institutional markets, restaurants and direct sales to consumers. Of course, it is essential that the residents of those communities have reasonable access to jobs, shopping, government services and other needs. Several impediments to diversifying and growing the economies of Whatcom’s rural communities have been identified, including a lack of communication infrastructure (especially high-speed internet and reliable cell phone service) and a limited inventory of retail, commercial and industrial buildings with adequate utilities in which to locate businesses. Identifying and addressing impediments to investment in rural Whatcom County is essential if these communities are going to remain desirable places to live. It should also be understood that there are tradeoffs when one chooses to live in a rural community, which most residents of those places understand and accept. For these reasons, rural economic development efforts should be led at the local level – with support from the County and other appropriate entities – since the residents of these areas understand best the strengths and weaknesses of where they live and how they want to see their specific communities develop. C. Understand that the Region’s environmental resources are important economic assets that draw

people here and are integral to Whatcom County’s strong sense of place. The environment of Whatcom County is one of its principal economic assets. People are drawn here by the natural beauty, clean air and abundance of outdoor recreational opportunities. Whatcom has also been recognized as one of the nation’s up-and-coming retirement destinations, largely due to its beautiful setting. Indeed, natural features rank high among Whatcom’s best known assets and any regional economic strategy must explicitly identify how these assets serve economic growth. The economic value of Whatcom’s natural resources manifests itself in numerous ways. For instance, the County is the top producer of raspberries in the U.S. and a leading producer of other types of berries as well as dairy products, fish and shellfish. However, it is important to note that a single resource will often have value to more than one economic sector. For instance, the presence of timberland supports eco-tourism as well as the forest products industry. The same can be said of farmland – which in addition to the produce it generates also facilitates agri-tourism – as well as the

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region’s fisheries, which support both commercial and sport fishing. Those resources also add to the attractiveness and overall quality of life of the region, which in turn serve business recruitment efforts. And, of course, the various industries that use those resources provide jobs, the wages from which support all of the other sectors of Whatcom’s economy. Whatcom’s natural and recreational assets should be integral to its economic development efforts; they are a selling point and should be used as such. Resource management plans – whether for water, timber, soil and even air quality – should be informed to some degree by economic planning considerations, and vice versa. Industries that extract natural resources must also steward those resources with implementable plans for restoration, and when that is done well, those companies should be recognized and their story told. Land-use and transportation plans should acknowledge the County’s rural and agricultural heritage and strive to retain the majority of its productive farmland. D. Ensure that the County’s land-use plans and those developed by the Region’s local governments – as

well as the regional transportation plan developed by the Whatcom Council of Governments – are informed by adopted economic development goals.

Transportation, land-use and economic development are inextricably linked to one another. For example, improved access resulting from a new or improved transportation facility can spur interest for new commercial development in the vicinity, which will increase the intensity of land uses in that area. For this reason, transportation, land-use and economic development planning must not occur in a vacuum, but rather, those initiatives should be closely coordinated. The primary economic development guidance for local comprehensive plans and the regional long-range transportation plan should be the Comprehensive Economic Development Strategy (CEDS), which will be prepared by the Whatcom Council of Governments (WCOG) for Whatcom County, which is expected to be completed by the summer of 2014 and adopted by the County Council in the fall of that year. The CEDS itself will be informed by economic development plans developed by the County, the seven cities and the Port of Bellingham. The engagement of economic development planning staff in land-use and transportation planning would be beneficial in ensuring that those efforts take into consideration economic development goals and how land-use and transportation plans can aid in – or at least not detract from – their attainment. E. Encourage local governments, citizens’ groups and businesses to work together in developing

economic strategies and plans. Those government entities with responsibility for economic development planning – Whatcom County, the seven cities and the Port – should facilitate and effectively communicate opportunities for engagement in the process by residents and business leaders, who desire an understanding of how priorities are set and how the programs that result will work across organizational and jurisdictional boundaries to achieve established goals. Business owners and residents – the region’s consumers – can also bring much needed real-life perspectives to the economic development planning process that simply cannot be acquired without their participation, and those perspectives should be reflected in the economic development sections of local comprehensive plans as well as in the CEDS. Both traditional and new media (blogs, online forums, social media, video streaming, etc.) should be utilized to maximize the public’s awareness of and contribution toward economic development planning.

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There must also be coordination among the various jurisdictions and the Port in the preparation of economic development plans. While the CEDS will lay out a vision for the entire county, it must also take into account existing local strategies. Similarly, once the CEDS is adopted by the County Council, subsequent local economic development plans should strive for consistency with it. Consistency across these various plans will reduce confusion on the part of business prospects, avoid costly – and frequently unproductive – competition between jurisdictions, and project the image that Whatcom County and its constituent jurisdictions are acting strategically and in concert in growing the regional economy. Such a multi-jurisdictional focus on a common set of outcomes will serve to align the jurisdictions’ efforts and – using common metrics – enable measurement of the degree to which countywide goals are being attained. Vision Statement No. 3. Whatcom County has an outstanding quality of life where all residents have opportunities to thrive and the support they need to seize those opportunities. A. Ensure that approved land-use plans and economic strategies consider the health and quality of life

of all of Whatcom County’s residents. The relationship between land-use and transportation planning to community health is a relatively recent subject of research, but that which has been conducted thus far points to a correlation which has been decades in the making. For example, the ubiquity of the automobile, social policies that led to the decline of neighborhood schools and sprawling residential land-use patterns have inhibited walking and biking, which coincides with increased rates of childhood obesity and a host of other negative health outcomes. Community health should be considered when land-use and transportation policies are established. Public health professionals can add value to land-use policymaking by identifying potentially adverse outcomes to community health. Bicycle, pedestrian and transit use should be considered in local and regional plans and included wherever the use of those modes would be practicable. The County and local governments should adequately support the Whatcom Transportation Authority bus service and Whatcom Smart Trips, the regional transportation demand management program that has been remarkably successful at increasing the share of bike, pedestrian and transit trips in Whatcom County, and especially in Bellingham. Expansion of outdoor recreation infrastructure such as bike lanes on secondary streets, walking paths, and trails promotes community health and personal well-being. Land-use policies should recognize the importance of preserving open space and recreational areas to facilitate healthy, active lifestyles. Mixed-use development proposals that enable people to live, shop and recreate without having to leave the neighborhood should be encouraged when deemed to be viable. B. Support health initiatives that enhance the physical and emotional well-being of Whatcom’s

residents. Healthy and well-adjusted citizens are essential to a strong community, and vice versa. In addition to the intrinsic value of having happy and healthy residents, those communities derive certain economic benefits through reduced spending on emergency care and treatment for chronic conditions. Providing access to medical and emotional health services – and especially preventative care – is a social responsibility that can, if managed well, offset some of its costs through savings in other public services.

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Certain sectors of Whatcom’s population face more barriers to obtaining healthcare than others, particularly elderly residents and those experiencing poverty. Access to medical clinics and physicians is also a concern for many residents of rural Whatcom County, especially those with limited or no access to transportation. Barriers to improving community health must be identified and a plan for removing or mitigating those barriers developed. Public health agencies are encouraged to engage and empower residents to take more control of their health and wellbeing. Providing greater access to recreational opportunities and healthy food, especially for children with limited access to them, should also be explored. The Community Health Improvement Plan addresses specific community health issues and strategies for individual and community action. C. Advocate for and support the region’s educational institutions, especially its university and colleges. Among Whatcom County’s many resources is its wealth of educational institutions, which include seven public school districts, numerous private schools, Bellingham Technical College (BTC), Northwest Indian College (NWIC), Western Washington University (Western), Whatcom Community College (WCC), and extension programs and satellite campuses of several other institutions. The ability to receive a quality education from Pre-K through post graduate study greatly enhances the quality of life in the County and is an important asset in recruiting businesses to come to the region. Indeed, strong public schools and the availability of higher education are among the principal attributes that prospects look for when considering relocation. Beyond the civic responsibility to the region’s children to see that they receive a good education, supporting the County’s institutions of higher learning – especially its brick-and-mortar institutions (BTC, NWIC, WCC and Western) – is essential to the economic well-being of the County. Those schools support the regional economy in several ways. Western, WCC and BTC were the second, seventeenth and twenty-sixth largest employers, respectively, in the County in 2013, with a combined workforce of nearly 2,300 employees. These institutions – especially BTC and WCC – support workforce development by offering programs that provide highly-skilled workers to industries critical to the regional economy. And, of course, they educate young people (and many not so young) from Whatcom County as well as other parts of the State, the U.S. and the world. For their part, those institutions must continually strive to offer academic and occupational training that is relevant to both the regional and the world economies and that takes advantage of the County’s location as well as its existing economic assets, such as programs that address refining, international trade, maritime trades, brewing and distilling, agriculture and recreation.

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SECTION 7: METRICS Performance measures will be tied directly to the economic, environmental and social outcomes contained in the three Vision Statements that guided the development of this Comprehensive Economic Development Strategy. The Whatcom Council of Governments – in cooperation with federal, state and local agencies (especially those described in Section 4 of this CEDS) – will monitor the following activities year-over-year, beginning in 2016 and running through 2019, subject to availability of data:

The amount of investment in infrastructure by Whatcom County, the seven cities, the Lummi and Nooksack tribes, the Port of Bellingham and Public Utilities District No. 1

Net business starts and expansions by existing businesses

Manufacturing employment

Changes in the average time needed to obtain business-related permits, by jurisdiction

Changes in traffic volumes of Canadians entering Whatcom County as a proxy for their participation in the regional economy

Comparisons of the County’s unemployment rate with those of Washington State and the U.S.

Comparisons of the amount of jobs created in Whatcom County to Washington State and the U.S. as a percentage of the working populations of each

Changes in the populations of the County’s smaller communities

Public health statistics for Whatcom County’s population compared to Washington State and the U.S.

Changes in enrollment at Western Washington University, Bellingham Technical College, Northwest Indian College and Whatcom Community College

Comparisons of the County’s per capita income level with those of Washington State and the U.S.

Comparisons of the degree of industry diversity in the County with those of Washington State and the U.S.

Other indicators as needed. Trends in these indicators and any significant changes in the economy will be monitored by the Whatcom Council of Governments and reported to the Whatcom County Executive’s office annually to facilitate timely revisions to the action items contained in this CEDS to ensure that it is effectively meeting regional goals.

Whatcom County Comprehensive Economic Development Strategy

2015 Project List

Prepared by the Whatcom Council of Governments Approved by the Whatcom County Council on March 31, 2015

Whatcom County Comprehensive Economic Development Strategy – Project List (March 2015)

PL-1

Project Name Location Description of Project Project Type

Estimated Cost

Potential Funding Source(s)

WHATCOM COUNTY Courthouse Exterior Whatcom

County Courthouse

Repair failing roof and exterior Public Works 4,799,000 EDI, REET I

State Street Remodel 1500 North State St.

Remodel for reorganization Public Works 2,805,000 EDI/State St. Fund

Civic Center Remodel 322 N. Commercial

Remodel for reorganization Public Works 2,765,000 Civic Center Fund

Girard Street Repair 509 Girard Street

Repair and upgrade building Public Works 511,000 EDI

New Jail LaBounty Road Construct new jail Public Works 87,000,000 Bonds

New Sheriff’s Office LaBounty Road Construct new Sheriff’s Office Public Works 13,000,000 REET I

Existing Jail Remodel Public Safety Building

New dayholding facility Public Works 3,000,000 Bonds

Public Defender’s Office Roof 215 N. Commercial

Replace roof and repair sidewalk Public Works 160,000 REET I

Northwest Annex Cooling Tower Northwest Annex

Replace cooling tower Public Works 86,000 EDI

Emergency Operations Center Building

Whatcom County

What-Comm changeover Public Works 50,000 REET I

South Fork Park Development Whatcom County

Install public restrooms, replace Nesset Creek Bridge, construct access road, parking and landscape

Public Works 688,000 REET II, Park Improvement Fund, State grant

Hovander Homestead Roof Whatcom County

Replace roof Public Works 138,000 REET I

Ferndale Senior Center Roof Whatcom County

Replace roof Public Works 140,000 REET I

Plantation Range HVAC Plantation Range

Replace HVAC Public Works 290,000 REET I, State grant

Silver Lake Park Silver Lake Park

Utility, road and day use imp. Public Works 880,000 REET II

Samish Park Lake Samish Park

Playground replacement Public Works 85,000 REET II

Nesset Farm House Restoration Nesset Farm Restore historical home Public Works 125,000 Nesset Foundation

Whatcom County Comprehensive Economic Development Strategy – Project List (March 2015)

PL-2

Lake Whatcom Trails Lake Whatcom Park

Trail development Public Works 220,000 State grant, donations

Lummi Island Overlook Deck Lummi Island Public Works 95,000 REET II

Birch Bay Master Planning Birch Bay Park development planning Planning 50,000 REET II

Canyon Lake Comm. Forest Access road repair Public Works 135,000 REET II

Lighthouse Marine Park Point Roberts Deck/playground replacement Public Works 250,000 REET II

Birch Bay Drive Pedestrian Facility Birch Bay Drive This is a 1.58 mile separate berm to provide soft-shore erosion protection, habitat enhancement, and to encourage pedestrian use along Birch Bay Drive.

Public Works 10,694,000 Federal grant, RF, EDI, Flood, BBWARM, REET II

BBWARM Harborview Road Harborview Road

Culvert replacement Public Works 95,000 REET II

BBWARM Cottonwood Drive Cottonwood Drive

Drainage improvement Public Works 85,000 REET II

Beaver Creek Sudden Valley This project will restore and repair eroded sections of Beaver Creek to reduce sediment from entering Lake Whatcom.

Public Works 565,000 REET II

Academy Road Academy Road, Bellingham

Stormwater improvements Public Works 1,049,000 State, Flood, REET II, COB

Agate Heights Estate Bay Lane Stormwater improvements Public Works 610,000 REET II, Flood Fund

Cedar Hills/Euclid Stormwater improvements Public Works 630,000 REET II, Flood Fund

Sudden Valley Sudden Valley Stormwater improvements Public Works 640,000 REET II

Silver Beach Creek Silver Beach Stormwater improvements Public Works 750,000 REET II, Flood Fund

Northshore Drive East North Street

Stormwater improvements Public Works 200,000 REET II

Lowell Drive and Cedarbrook Court

Lowell Drive & Cedarbrook Court

Stormwater improvements Public Works 150,000 REET II

Salt/Sand Bunker Cover Replacement

Central Shops Replace vinyl cover for bunker Public Works 60,000 Road Fund

Central Shop Exhaust Central Shops Replace/maintain shop exhaust Public Works 175,000 Shop Services Fund

Slater Road/I-5 Interchange Improvements

Slater Road Construct five roundabouts on Slater Road at its intersections with Northwest Road, Pacific Highway, northbound and southbound I-5 on-ramps and Rural Avenue to improve channelization and stop control.

Public Works 30,000,000 Federal, State and local funds; Developer contributions

Whatcom County Comprehensive Economic Development Strategy – Project List (March 2015)

PL-3

CITY OF BELLINGHAM Railroad Safety Improvements Bellingham Includes safety improvements at at-grade rail

crossings, rail relocation to eliminate several at-grade crossings throughout the Whatcom Futures District.

Public Works 20,000,000 Motor Vehicle Fuel Taxes, Vehicle Registration Fees, Sales Tax, Other Federal, State and Local Funding Sources

City Center Parking Project Bellingham Planning and implementation of parking improvements to increase the parking inventory to meet current and projected demand in support of comprehensive district redevelopment project.

Planning and Public Works

8,100,000 General or revenue obligation bonds

City Center Redevelopment Bellingham Redevelop 600 W. Holly, Army Street and other city-owned properties into a mixed use developments compatible with the sub-area plans in an effort to spur additional private sector development to increase housing and job opportunities.

Planning and Public Works

10,000,000 Targeted grants, CDBG, HOME, HUD 108 and other Federal, State, local and private funds

City Center and Urban Village Infrastructure

Bellingham Construct critical infrastructure in Bellingham's Downtown, Old Town and Waterfront Districts, including streets, parks and utilities.

Parks and Public Works

20,000,000 Real Estate Excise Tax, Greenways Levy, Private Funds, Park Impact Fees, LIFT, Street and Other Federal, State and Local Funding Sources

Regional Wetland and Stormwater Facilities

Bellingham Explore regional wetland alternatives such as "in-lieu fee" programs and regional stormwater facilities when they can provide equal or better treatment to on-site facilities

Public Works 5,000,000 Private and other Federal, State and local funding sources

Mahogany Street Connection Bellingham Mahogany is a critical to retail and industrial development between Northwest and Pacific Highway.

Public Works 6,000,000 Motor Vehicle Fuel Taxes, Vehicle Registration Fees, Sales Tax, Other Federal, State and Local Funding Sources

Orchard Street Connection Bellingham This new east-west arterial and trail connection under I-5 will enhance regional transportation circulation for all modes between rapidly-growing northern Bellingham, St Joseph’s Hospital, and central Bellingham.

Public Works 10,000,000 Motor Vehicle Fuel Taxes, Vehicle Registration Fees, Sales Tax, Other Federal, State and Local Funding Sources

Whatcom County Comprehensive Economic Development Strategy – Project List (March 2015)

PL-4

West Horton Road Whatcom County

West Horton Road is an important east-west connection in the City's UGA.

Public Works 5,000,000 Motor Vehicle Fuel Taxes, Vehicle Registration Fees, Sales Tax, Other Federal, State and Local Funding Sources

Major Recreational Facility Whatcom County

Provide parking and visitor facilities for a major mountain biking destination.

Public Works 1,500,000 Real Estate Excise Tax, Greenways Levy, Private Funds, Parking Impact Fees, Other Federal, State and Local Funding Sources

Waterfront District Specific Utilities

Bellingham Provide infrastructure for district utilities for more efficient heating, irrigation, Encogen heat capture, and potential hydropower generation.

Public Works 6,000,000 Private, Other Federal, State and Local Funding Sources

CITY OF BLAINE Improved Interstate Highway Access – Interchange 274

Northwest Whatcom County and Pacific Highway Border Crossing

This project implements the FHWA/WSDOT-approved Interchange Justification Report improving I-5 access at Exit 274 by replacing partial interchange with a full interchange. Provides direct connection from Blaine industrial area to I-5, serves as alternate access to truck border crossing, and serves as a critical access point to south Blaine and Birch Bay.

Public Works and Economic Develop-ment

50,000,000 STP Regional Funds, TIGER Grant Funding, WSDOT, TIB, Developer Contributions

Boblett Street and SR 543 (Truck Route) Signalization Improvements

Blaine and Pacific Highway Border Crossing

This is the first intersection on northbound SR 543 and is the primary corridor for all cross-border freight. The Boblett/SR 543 intersection has several challenges; including the signal itself which is an antiquated span wire which requires frequent repair. This project improves channelization, traffic signal and equipment for improved operation and pedestrian safety. Boblett St. serves the industrial zone to the east and Blaine K-12 school complex abutting on the west.

Public Works and Economic Develop-ment

1,200,000 STP Regional Funds, WSDOT, TIB

Whatcom County Comprehensive Economic Development Strategy – Project List (March 2015)

PL-5

SR 543 Widening On-ramp to H Street R3, Boblett to H Street

Blaine and Pacific Highway Border Crossing

Project adds an additional northbound truck lane to SR 543. This lane would add capacity to alleviate severe queue length which backs onto I-5 multiple times a month at the border. It would also provide capability for TDM solutions such as dynamic lane assignment at the Boblett intersection.

Public Works and Economic Develop-ment

1,500,000 STP Regional Funds, WSDOT, TIB

Peace Portal/Bell Road Signalization

Blaine and Birch Bay

Traffic signal installation to improve safety and congestion at this location. Serves as primary corridor between Blaine, Birch Bay, and Semiahmoo Spit, as well as I-5 Exit 274 off-ramp. Involves reconfiguration of RR crossing. Currently stop-controlled.

Public Works 1,500,000 STP Regional Funds, TIB, Developer Contributions

Mitchell Avenue/H Street Signalization

Blaine Traffic signal installation to improve safety and congestion at this location. Serves arterial connection between mid-point of H Street and Peace Portal Drive.

Public Works 750,000 STP Regional Funds, TIB, Developer Contributions

Marine Drive Improvements, Phase 3

Blaine and Port of Bellingham

Marine Drive Phase 3 will improve the section east of Marine Park which serves the Port's Industrial Commercial area and the Public Pier. This project restores a badly deteriorated seawall on the south and enhances the riprap on the north. It also includes the addition of a pedestrian boardwalk to link Marine Park to the public Fisherman's Pier.

Public Works and Economic Develop-ment

2,300,000 STP Regional Funds, TIB

Harvey Road/Sweet Road Transmission Improvements (18” Line)

Blaine and Northwestern Whatcom County

Upgrade potable water line capacity outside city limits serving portions of NW Whatcom county within Blaine Water Service Area.

Public Works 2,200,000 DOE Centennial Funds, USDA-RD Grant/Loan, PWTF

New 630’ Zone Reservoir (East Blaine) and Booster Pump Station, Phases 1 & 2

Blaine New reservoir establishing new high pressure zone to increase storage capacity and provide adequate pressure to underserved areas and residential/commercial development of east Blaine.

Public Works 7,000,000 DOE Centennial Funds, USDA-RD Grant/Loan, PWTF

Whatcom County Comprehensive Economic Development Strategy – Project List (March 2015)

PL-6

Regional Stormwater Retention Facility and Wetland Mitigation for Manufacturing Zoning District

Blaine The City of Blaine manufacturing area consists of a number of small (2-7 acre) sites that are fully served with City utilities. This project provides a regional stormwater facility and associated conveyance piping to mitigate the stormwater impacts on industrially zoned proprieties to encourage manufacturing interests to locate in Blaine and create jobs. Many of these parcels contain small, low quality wetlands that pose significant development challenges and restrictions. This project includes a Regional Wetlands area that would provide collective mitigation enhancing an existing wetland that supports a large bird population.

Public Works and Economic Develop-ment

2,000,000 EDI Grant, PWTF, Developer Contributions

Peace Portal Boardwalk – Connection Between H and G Street Plazas

Blaine Construction of a pedestrian boardwalk along the marine bluff of the downtown district in order to capitalize on the unique shoreline location and rich commercial fishing history.

Public Works and Economic Develop-ment

1,000,000 EDA/City of Blaine, CZM, Ground Fish Grant, Other Federal/State/Local

Pedestrian Bridge from the Wharf District to Downtown Business District (H Street Plaza)

Blaine and Port of Bellingham

Design and construct a pedestrian bridge crossing the BNSF rail lines (existing easement) to link the Peace Portal Boardwalk with Wharf District. Connects marina, marine recreational and historical fishing area to the downtown business district uniquely situated on an overlooking marine bluff. This is a priority project in the joint City/Port Wharf District Master Plan.

Public Works and Economic Develop-ment

1,500,000 EDA/City of Blaine, Port of Bellingham, CZM, Ground Fish Grant, Other Federal/State/Local

Reconstruction of the Semiahmoo Lighthouse

Blaine This project will serve as a major tourist attraction. The lighthouse will be constructed to approximate life-size scale from the original plans secured from archives in Washington DC. This is a priority project in the joint City/Port Wharf District Master Plan.

Economic Develop-ment

750,000 EDA/City of Blaine, Port of Bellingham, CZM, Ground Fish Grant, Other Federal/State/Local

Whatcom County Comprehensive Economic Development Strategy – Project List (March 2015)

PL-7

Marine Park Improvements Blaine Major waterfront park on the north side of Marine Drive. Site of City's new Lighthouse Point Water Reclamation Facility and future site of replica Semiahmoo Lighthouse. Restoration includes Whale Deck upgrades, outdoor theater improvements, trail paving, irrigation, and replacement of two birding shelters and addition of a festival/parking area. This is a priority project in joint City/Port Wharf District Master Plan.

Public Works and Economic Develop-ment

325,000 EDA/City of Blaine, Port of Bellingham, CZM, Ground Fish Grant, Other Federal/State/Local

Pintail Marsh and Cain Creek Restoration

Blaine Restore functioning wetland boundary between the Wharf District and BNSF railroad right-of-way and restores the mouth of Cain Creek. This is a priority project in the joint City/Port Wharf District Master Plan.

Planning 850,000 EDA/City of Blaine, Port of Bellingham, CZM, Ground Fish Grant, Other Federal/State/Local

Marine Park Shoreline Restoration Blaine Stabilizes and improves habitat functions for 650 feet of Marine Park shoreline, and rehabilitates/controls invasive species on 700 feet of shoreline. This project protects the shoreline from continuing erosion that would ultimately threaten City utilities and critical wastewater treatment facilities. This is a priority project in the joint City/Port Wharf District Master Plan.

Planning 3,500,000 EDA/City of Blaine, Port of Bellingham, CZM, Ground Fish Grant, Other Federal/State/Local

CITY OF EVERSON Lincoln Street, Phases 1 & 2 Everson Reconstruct and extend Lincoln Street from State

Route 544 through the downtown commercial area to Blair Drive.

Public Works 2,100,000 City Street Fund, STP, TIB

Kirsch Drive Improvements Everson Reconstruct and extend Kirsch Drive from SR 544 to the extension of Lincoln Street

Public Works 725,000 City Street Fund, TIB

Wastewater Treatment Plant Everson and Nooksack

Upgrade effluent outfall: Increase the level of protection by relocating the outfall upstream of the Nooksack River bridge to provide better mixing and reduce the likelihood of future damage from major flood events.

Public Works 775,000 FEMA Hazard Mitigation Grant

Everson Sewage Treatment Plant Upgrade

Everson and Nooksack

Design and construction of a major upgrade to Everson Sewage Treatment Plant.

Public Works 4,500,000 Nooksack Sewer Fund; Everson Sewer Fund; CCWF; Washington RLF/EDA

Whatcom County Comprehensive Economic Development Strategy – Project List (March 2015)

PL-8

Downtown Market Analysis Everson Conduct professional market analysis to identify demand for products and services and assess the downtown’s ability to capture that demand.

Technical Assistance

20,000 Local funds; Port of Bellingham

Gas Station/Mini Mart Everson Prepare site selection materials and research potential investor (local or with a national chain) to determine interest in locating a gas station in Everson.

Planning 5,000 Local funds

Everson Road Sewer Line Everson Upgrade existing 8” line for future growth on the southwest portion of the City and UGA.

Public Works 165,000 Local funds

Business Incubator Everson Conduct feasibility study and potentially purchase property, if deemed feasible by study, for a business incubator. Consider incorporating other local studies and projects such as an agricultural center.

Planning 15,000 EDA/Port of Bellingham; LMF; CERB

East Main Street Water Main Upgrade

Everson Increase water main from 6 to 10 inches from Kirsch Dr. east to City limits, providing better pressure for fire protection and emergency uses with the City of Nooksack.

Public Works 1,200,000 LMF

East/West Connector Everson Future all-weather arterial connecting Mission Road and Everson-Goshen Road (SR 544), used as primary arterial to future UGA and light industrial area of South Everson.

Public Works and Business Develop-ment/ Finance

2,400,000 CDBG; GMA Planning Grant; CERB; EDA

CITY OF FERNDALE Utility Extension to Malloy/Grandview

Ferndale The nature of current and future development in this area is a combination of retail but more importantly light industrial – a sector of the economy that is growing fast at the same time that the inventory of available land has now reached critical levels. Ferndale is one of the only jurisdictions with theoretical inventory within its UGA in close proximity to highway and rail transportation, but development cannot be initiated without these extensions. Opens up area for development, protects sensitive watersheds from existing development built to rural standards – [Grandview area], provides fire flow, etc.

Public Works 2,000,000 PWTF, Local, EDA, DWSRF

Whatcom County Comprehensive Economic Development Strategy – Project List (March 2015)

PL-9

Water Reservoir – Grandview Area (Fire Flow)

Ferndale Significant undeveloped and underdeveloped areas exist in this manufacturing and industrial zoned area of the City and UGA. Development interest in this area appears high, but lacks appropriate water infrastructure to support the zoning and fire flow requirements associated with potential industrial and/or manufacturing uses. A collaborative effort is needed between the City of Ferndale and PUD#1 to serve the area with fire flow via a potable water supply system.

Public Works 6,000,000 PWTF, Local, EDA, DWSRF

Wastewater Treatment Plant Upgrades

Ferndale City’s wastewater treatment plant currently runs at close to 80% capacity during low demand periods and at capacity during high flow demand periods (Fall/Winter). Future plant expansion is required or a development moratorium will have to be considered in 2017-18 until expansion is scheduled and funded.

Public Works 10,000,000 Water Quality Grants, EDA, CERB, PWTF, DWSRF

Gateway Area Stormwater Conveyance Improvements (Labounty Road and Main Street)

Ferndale As a result of the City’s Main Street Master Plan Planned Action EIS, action was identified that a regional drainage study was needed and was subsequently completed in 2014. As a result of that study several drainage areas in the 443 acre basin were determined to have insufficient stormwater runoff capacity. Several culverts need to be upsized in and around Main street and several ditch sections need to be reconstructed and expanded to meet the future runoff demands in the basin.

Public Works 1,750,000 DOE Water Quality Grants, Special Assessment, EDA, CERB, PWTF, Local Match

Right-of-Way Beautification and Landscaping Along Major Corridors

Ferndale Main Street, Portal Way and Slater Road: The creation of attractive, unified landscaping along major corridors provides a sense of place and welcome for new development. Project would include staff and consultant time to develop a coordinated landscaping proposal, funding for materials and plants, and planting.

Public Works 300,000 TIB, TBD, Local, Federal/State

Whatcom County Comprehensive Economic Development Strategy – Project List (March 2015)

PL-10

Advance Mitigation Program Ferndale The Advance Mitigation Program would allow private development to mitigate impacts to low-to-medium quality wetlands and critical areas by paying into a fund to establish mitigation and enhancement areas to be established and maintained by the City of Ferndale. The mitigation and enhancement areas that will be utilized have been identified as having degraded habitat and/or of ecological importance to the City. In many cases, mitigation areas may be established with the assistance of private and public partnerships and may include opportunities for public education. Depending upon the specific mitigation area, local or regional Low Impact stormwater elements may also be integrated.

Public Works and Planning

75,000 Private and Public Development (self-sustaining once created)

Wayfinding Sign System Ferndale Establish a coordinated system of wayfinding signs for the purpose of guiding visitors, residents and businesses to their destinations (and other points of interest) within the City and the surrounding area. Coordinated wayfinding systems enable jurisdictions to improve traffic circulation, create a sense of place, improve the characterization of sub-areas and districts within a community, and reduce sign blight. As proposed, the City would establish a series of signs throughout the City that will provide directions to points of interest within the City. As part of this program a variety of existing signs would be removed and consolidated into the proposed wayfinding program. The City expects to coordinate with the Lummi Nation, Whatcom County, private businesses and the general public to identify important destinations within the Ferndale area and to development variations from the central theme of the wayfinding program.

Planning 75,000 Public and Private Partnerships, Local Funds, TBD, Economic Development Planning Grants, CDBG

Whatcom County Comprehensive Economic Development Strategy – Project List (March 2015)

PL-11

Thornton Overpass Ferndale Construction of an overpass over BNSF Railway tracks with connection to downtown and freeway interchange. This will significantly reduce Peak Hour Demand traffic on Main Street and improve development potential extensively in the surrounding area. It also greatly benefits I-5 access for residents and businesses in the subregion.

Public Works 20,000,000 Local Funds, TIB, State/Federal, TBD, EDI, TIFs

Planned Action EIS – Grandview Interchange

Ferndale Complete Environmental Impact Statement and Planned Action Ordinance to spur business location at freeway interchange.

Planning 200,000 Economic Development Planning Grants, CDBG

Main Street/Labounty Road Roundabout

Ferndale Construct multi-lane roundabout to accommodate anticipated large retail development along and adjacent to Main Street.

Public Works 2,000,000 REET, EDI, State Grant, Federal Grant

Main Street/Axton Road Roundabout

Ferndale Construct multi-lane roundabout to accommodate anticipated large retail development along Main Street/Axton Road.

Public Works 2,000,000 REET, EDI, State Grant Federal Grant

Interstate 5 Exit 262 Roundabouts Ferndale Construct on/off ramp roundabouts along I-5 at exit 262 where they intersect Main Street.

Public Works 4,000,000 State and Federal Grants; WSDOT Funding

LUMMI NATION No projects submitted

CITY OF LYNDEN Riverview Road Downtown

Historic Business District

Construction of ~1,700-foot of new roadway to complete the gap between Hannegan Road and 7th Street at the south end of the Lynden Historic Business District to provide access to 25 acres of fully serviced commercial and multi-family zoned properties to enhance the economic vitality of the District.

Public Works 1,900,000 Impact Fees; TDB; Federal, State and other local funds

4th Street Extension Downtown Historic Business District

Street improvements to extend 4th Street to the south from Front Street to provide vehicle and pedestrian access between Lynden’s Historic Downtown District and 25 acres of currently undeveloped commercial and residential zoned properties.

Public Works 700,000 EDI; Transportation Impact Fees; TBD; Federal, State and other local funds

Whatcom County Comprehensive Economic Development Strategy – Project List (March 2015)

PL-12

West Main Street Improvements (Phase 2)

West Lynden Reconstruct existing 20-foot roadway to an industrial street standard including curbs, gutters and sidewalks as well as utilities (water and storm drainage). Also, culvert and bridge replacement for an existing, uninhabited drainage ditch.

Public Works 2,000,000 EDI; Transportation Impact Fees; Federal, State and other local funds

Tromp Road Extension West Lynden New construction of a north-south connection between West Main Street to West Front and Birch Bay-Lynden Road. This project will include an industrial-standard street complete with curbs, gutters and sidewalks. All utilities, including water, sanitary sewer and stormwater conveyance have been constructed. This project will complete the connection between the northern portion of the City’s industrial area to Birch Bay-Lynden Road, providing safe and efficient access to State Route 539 and I-5.

Public Works 1,150,000 Federal/State/Local funds

Pepin Creek Lynden UGA This project relocates year-round flow in north-south running, deep roadside ditches along Benson and Double Ditch Roads (0.5 miles apart) to a newly constructed channel halfway between the two roads and extending to Badger Road (SR 546). This allows re-construction of the roads to arterial standards, prevents flooding in neighborhoods and nearby agricultural areas, and improves ESA fish habitat.

Public Works 6,000,000 EDI; Transportation Impact Fees; TBD; Federal, State and other local funds

CITY OF NOOKSACK Garfield Force Main Extension Nooksack Extend the force main from the Garfield sewer pump

station to Pump Station No. 4 in Everson. Public Works 1,000,000 City Sewer fund, PWTF

West Columbia Water Line Replacement

Nooksack Upgrade water main serving Nooksack Valley Middle School to intertie with Everson

Public Works 275,000 City Water Fund, PWTF, DWSRF

Stormwater Management Plan Development

Nooksack Inventory and assessment of existing stormwater management facilities serving the City of Nooksack. Following analysis of existing system, system improvements necessary to accommodate anticipated commercial, industrial and residential development would be identified and prioritized.

Technical Assistance and Planning

30,000 City General Fund; CCWF

Whatcom County Comprehensive Economic Development Strategy – Project List (March 2015)

PL-13

Historic Nooksack Store Building – Purchase and Renovation

Nooksack Purchase and renovate the historic 1913 Nooksack Store Building located at the corner of Nooksack Ave. and Madison Street to serve as new City Hall and multi-purpose community activity/meeting place.

Public Works 750,000 City General Funds; Historic Preservation Fund; USDA Rural Development

Everson Sewage Treatment Plant Upgrade

Everson and Nooksack

Design and construction of a major upgrade to the Everson Sewage Treatment Plant.

Public Works 4,500,000 Nooksack Sewer Fund; Everson Sewer Fund; CCWF; Washington RLF/EDA

NOOKSACK INDIAN TRIBE No projects submitted

PORT OF BELLINGHAM All American Marine Expansion Bellingham,

Fairhaven Provide site improvements and construct new larger facility for All American Marine. Retains 45 existing jobs and expands at least 25 directly plus enhancements to support Fairhaven Shipyard.

Public Works 10,000,000 Port; Whatcom County EDI

Harris Avenue Shipyard Pier Bellingham, Fairhaven

Replace wood pier to support business and job expansion by the shipyard. 100% design complete and in Port capital budget. Retains 145 jobs and grow another 100 marine trades jobs.

Public Works 7,800,000 Port; Federal; State; Whatcom County EDI

Shipping Terminal Rail Siding Connection

Bellingham Shipping Terminal

Reconnect the Bellingham Shipping Terminal to the mainline of the BNSF with the design and construction of a new siding.

Public Works 15,000,000 MTCA; Insurance; CERB; FMSIB

Mooring Improvements to Bellingham Shipping Terminal

Bellingham Shipping Terminal

Design and construct new mooring dolphins and fendering system.

Public Works 12,000,000 Port; State; Federal

Marine Trades Area Travel Lift Bellingham Waterfront District

Develop boat haul-out/travel lift on the north side of the Whatcom Waterway with a private partner. Feasibility/design and construction.

Public Works 2,000,000 Port; State; Federal; Whatcom County EDI

Bellingham Shipping Terminal, Log Pond Redevelopment Area

Bellingham Waterfront District

Power upgrades and improvement to buildings and load-out facilities at the Bellingham Shipping Terminal and provide uplands infrastructure to serve new economic development activity.

Public Works 5,000,000 Port; State; Federal; Whatcom County EDI

Mt. Baker Products Peninsula Improvements

Bellingham Squalicum Waterfront

Provide infrastructure on 4.5 acre industrial site behind Mt Baker Products to support new marine trades activity.

Public Works 2,000,000 Port; State; Federal; Whatcom County EDI

Whatcom County Comprehensive Economic Development Strategy – Project List (March 2015)

PL-14

Schultz Way Improvements Bellingham Squalicum Waterfront

Reconstruct Port-owned Schultz Way road to city standards as a secondary arterial, serving existing port tenants and extending it to the Mt Baker Products peninsula to serve new tenants.

Public Works 2,500,000 Port; State; Federal; Whatcom County EDI

Aviation Capacity Development Bellingham International Airport

Construct infrastructure to serve airplane hangar development with runway access, including demolition, re-grading and installation of utilities on Port-acquired Air National Guard site.

Public Works 7,200,000 (public funds)

1,500,000 (private

investment and agency customers)

Federal, State and 20% local match through debt; FAA; Department of Homeland Security

Airport Industrial Park Infrastructure Improvements

Bellingham Airport Industrial Park

Infrastructure improvements to the 18 acres of immediately buildable property in the AIP to support business relocation and expansion.

Public Works 7,500,000 Port; State; Federal; Whatcom County EDI

Blaine Wharf District Marine Industrial Area

Blaine Harbor Infrastructure improvements to facilitate upgrade of boat haul-out facilities, fueling facilities for commercial fishing and recreational vessels and upland boatyard/small boat yard expansions.

Public Works 5,000,000 Port; State; Federal; Whatcom County EDI

ITEK Energy Retention and Expansion Bellingham Waterfront District

Improvements to existing building through public/private partnership to allow ITEK Energy to grow, creating new jobs and meeting Port goals to build a clean technology sector in the Waterfront District.

Public Works 5,000,000 Port; State; Federal; Whatcom County EDI

CITY OF SUMAS Truck Bypass Sumas New road alignment for trucks seeking to utilize the

industrial areas of Sumas and the international border crossing.

Public Works 8,100,000 Motor Vehicle Fuel Taxes; Vehicle Registration Fees; Other Federal, State and Local Funding Sources

Sumas Avenue Reconstruction Sumas Reconstruct Sumas Avenue from Front Street to Garfield Street.

Public Works 2,300,000 STP; City Street Fund

Cherry Street (SR 9) Bridge Replacement

Sumas Replace Cherry Street bridge to remove blockage to flow of floodwaters and increase capacity on the State highway.

Public Works 3,000,000 STP; BRAC; FEMA Hazard Mitigation Grant

WHATCOM COUNCIL OF GOVERNMENTS Whatcom Smart Trips Whatcom

County Core funding for countywide program to reduce travel demand through the use of walking, bicycling, carpooling and transit.

Economic Develop-ment

1,000,000 Federal, State and local funds

Whatcom County Comprehensive Economic Development Strategy – Project List (March 2015)

PL-15

International Mobility and Trade Corridor Program (IMTC)

Whatcom County, State of Washington, British Columbia, Canada and U.S.

Core funding for IMTC, a coalition of U.S. and Canadian government and business entities that identifies and promotes improvements to mobility and security for the four border crossings that connect Whatcom County and the Lower Mainland of British Columbia.

Planning 1,000,000 Federal, State and local funds (IMTC has received funding from the Province of British Columbia and the Canadian federal government to provide local matching funds for U.S. federal grants)

Econometric Model Whatcom County

This project includes acquisition and calibration of data and software intended to enable economic evaluation of various development and infrastructure improvement scenarios. This is a policy/decision-making tool designed to inform investment decisions toward best use of resources.

Planning 150,000 Federal, State and local funds

WHATCOM COUNTY PUBLIC UTILITIES DISTRICT NO. 1 Whatcom County Coordinated Water System Plan Update

Whatcom County

Update WCCWSP Cities/County GMA Health/ Safety and Economic Develop-ment

100,000 Whatcom County, EDI

WRIA 1 Water Budget Whatcom County, WRIA 1

Basis for determining out of stream needs for Instream Flow Action Plan implementation. Requested funding would cover five years.

Public Works and Economic develop-ment

500,000 WRIA 1 Joint Board; EDI; PUD; State

Alternative Energy Project Whatcom County

Job creation, energy production, agriculture support. Lower energy costs to public/private consumers.

Public Works 7,000,000 Federal; State; Private; PUD; EDI

Electric Utility Infrastructure Western Whatcom County

Lower energy costs to business, agriculture and residents. Stabilize electric utility service in industrial area.

Public Works and Economic Develop-ment

5,000,000 Federal; State; Private; PUD; EDI

Industrial Water Reclamation and Re-use

Western Whatcom County

Water conservation, improve water quality, lower costs to public and private consumers.

Public Works 10,000,000 Federal; State; Private; PUD; EDI

Associate Development Organizations 2013-2014

Biennial Report per RCW 43.330.082

December 2014 Report to the Legislature

Brian Bonlender, Director

Associate Development Organizations

Acknowledgements Washington State Department of Commerce

Mary Trimarco, Assistant Director, Business Services Division Karen McArthur, Project Manager/Editor Robb Zerr, Marketing Services Manager/Writer Washington State Department of Commerce Business Services Division 1011 Plum St. SE P.O. Box 42525 Olympia, WA 98504-2525 www.commerce.wa.gov For people with disabilities, this report is available on request in other formats. To submit a request, please call 360-725-4000 (TTY 360-586-0772).

Associate Development Organizations

Table of Contents

Introduction ..................................................................................................................................... 1

Report Scope and Methodology .................................................................................................... 3

Key Outcomes ................................................................................................................................ 5

State Audit Findings and Recommendations............................................................................... 7

Appendix A: ADO Reports by County ........................................................................................... 9

Adams County Development Council ..................................................................................... 10

Southeast Washington Economic Development Association .............................................. 13

Port of Chelan County .............................................................................................................. 19

Clallam County Economic Development Council .................................................................. 21

Columbia River Economic Development Council – Clark County ........................................ 24

Cowlitz Economic Development Council................................................................................ 28

Port of Douglas County ............................................................................................................ 31

Grant County Economic Development Council ..................................................................... 35

Greater Grays Harbor, Inc. ....................................................................................................... 39

Island County Economic Development Council .................................................................... 42

Economic Development Council of Jefferson County .......................................................... 51

Economic Development Council of Seattle & King County .................................................. 53

Kitsap Economic Development Alliance................................................................................. 57

Kittitas County Chamber of Commerce .................................................................................. 60

Associate Development Organizations

Klickitat County Public Economic Development Authority .................................................. 63

Lewis County Economic Development Council ..................................................................... 65

Lincoln County Economic Development Council .................................................................. 69

Economic Development County of Mason County ................................................................ 72

Economic Alliance, Okanogan County ................................................................................... 76

Pacific County Economic Development Council ................................................................... 80

Pend Oreille County Economic Development Council .......................................................... 83

The Economic Development Board for Tacoma-Pierce County ........................................... 88

San Juan County Economic Development Council ............................................................... 93

Economic Development Association of Skagit County....................................................... 102

Skamania County Economic Development Council ............................................................ 109

Economic Alliance Snohomish County ................................................................................ 113

Greater Spokane Incorporated .............................................................................................. 118

Tri County Economic Development District – Stevens & Ferry Counties .......................... 123

Thurston County Economic Development Council ............................................................. 126

Wahkiakum Chamber of Commerce ..................................................................................... 130

Port of Walla Walla ................................................................................................................. 133

Port of Bellingham – Whatcom County ................................................................................ 144

Yakima County Development Association ........................................................................... 148

Associate Development Organizations 1

Introduction

Overview

Associate Development Organizations (ADOs) are the Washington State Department of Commerce's (Commerce) partners in local economic development activities. ADOs are local organizations designated by each county to coordinate business retention and expansion, and support new business development and recruitment activities within their service area(s). ADOs also support research, planning, and implementation of regional and local economic development strategies.

RCW 43.330.080 directs Commerce to contract with county-designated ADOs. It also directs organizations that are designated as ADOs to build strong relationships with public and private partners within their community. ADOs leverage their state funding to obtain financial support from their partners. With this combined effort, ADOs create jobs, business growth, and capital investment in their communities. Most importantly, because each ADO is a local entity, its activities are grounded in the needs of its local economy.

The statute states that the services delivered by ADOs include: • Participating in the development of a county-wide economic development plan. • Performing as the local economic development point of contact for both public and

private partners. • Providing information on state and local permitting processes, tax issues, export

assistance, and other essential information for operating, expanding, or locating a business in Washington.

• Marketing their county and the state as an excellent place to expand or relocate a business.

• Collaborating with local partners to meet workforce development needs. • Providing business retention and expansion services. • Partnering with other organizations such as Small Business Development Centers and

Service Corps of Retired Executives (SCORE) to improve business support services. • Collecting data for use in local and statewide program evaluation. • Participating in region-wide economic development planning and research. • Sharing best practices with other associate development organizations at least two

times each year.

In 2012, the Legislature made several changes to the annual contractual and reporting requirements of the ADOs, and the responsibilities of Commerce. One of these changes was for the ADOs to meet and share best practices with each other at least twice annually. Commerce coordinates these meetings. Additionally, the ADOs must provide a “summary of best practices shared and implementation” in their annual reports to Commerce (Appendix A).

Associate Development Organizations 2

ADO/Commerce Relationship

As part of the Team Washington strategy first laid out in 1985, ADOs were created to provide economic development services in every county in the state. Originally, the Local Economic Development Assistance Program provided administrative grants to the 33 ADOs that served the state’s 39 counties. The Growth Management Act of 1990 formally recognized the ADO network as the delivery system for local economic development resources and assigned the program to the Department of Trade and Economic Development (now Commerce).

ADOs negotiate their contracts with Commerce on a biennial basis. As part of the contracting process, ADOs and Commerce staff jointly set target goals in a variety of performance measures for each county. Currently, Commerce maintains contracted partnerships with 34 ADOs which oversee all 39 counties.

Commerce’s Business Services Division maintains the ADO contracts and provides support to the ADO network, so the relationship between the ADOs and Commerce is two-fold. One side is a contractual relationship focused on the details of the grant and ensuring that performance is measured and targets are met. The other side of the relationship is a coordinated effort to provide economic development services throughout the state.

For example, Commerce serves as liaison between client businesses and other government agencies to help streamline site selection and permitting processes, and access certain loans and incentives. Commerce is able to elevate projects to the Governor’s Office on behalf of the ADOs as well as coordinate recruitment and expansion projects so that businesses receive a timely response to their requests for proposals.

ADOs serve as the principal contact for Commerce regarding economic activity in their respective areas. ADOs help Commerce gather data about community profiles, industrial sites, plans for business development and retention, reports on business activities, and proposals for other economic activities in their service areas.

Associate Development Organizations 3

Report Scope and Methodology Commerce is required to report ADO performance results to the Legislature by December 31 of each even-numbered year. The report must include the performance results of the contracts with ADOs as required by RCW 43.330.082. Background information on local economic development around the state and recent ADO program improvements may also be presented.

For this report, Commerce used ADO self-reported performance measurement data from the contract management database, information collected directly from the ADOs, and economic, demographic and budget information published by federal and state agencies.

ADO Performance Data

ADOs report quarterly to Commerce the types and quantities of economic development activities funded by their grant and local match for each county. ADOs also report the number of businesses, jobs, and private investments leveraged with the ADO grant funds. Performance data has been available since 2008, though the metrics have changed with each contracting cycle.

In 2011, Commerce transitioned to a cloud-based contract performance monitoring system (Salesforce) to track data on business recruitment, retention, expansion, and startups. This system was designed to provide greater context and detail about the outcomes reported by the ADOs and enable Commerce staff to review the data more effectively. Further, this tool was designed to allow ADOs to input quarterly updates on the businesses they are working with. This is particularly helpful because many economic development projects are lengthy and/or multi-phased.

The measurements were revamped in 2013 to coincide with the new grant contracts. These metrics were jointly developed by a committee of ADO representatives in collaboration with Commerce staff. The new reporting system was intended to capture a wider set of variables that more accurately reflected the diverse activities of the ADO network.

Annual goals are self-selected by each ADO for the new grant period. While this new reporting system expanded the breadth of reporting, it did not contribute to increasing the accuracy of the reporting or show a tangible relationship between local economic development efforts and recruitments, retentions, expansions, jobs, or capital investment. Also, the Salesforce system design could not support the revamped metrics without costly adjustments, so Commerce has been working with a new consultant to come up with a solution.

Associate Development Organizations 4

Data Limitations

ADO performance measurement data have several limitations. • Data are self-reported by each ADO. The reporting system does not employ

performance measures that are verifiable by a third party. Therefore, Commerce staff is not able to fully audit the performance reports.

• Several ADOs report difficulty determining the value of certain measures, such as the amount of private investment leveraged and employment wages for many projects. Gathering this information depends greatly on the strength of the relationship between the ADO and the individual business, so results are often inconsistent.

Associate Development Organizations 5

Key Outcomes In State Fiscal Year (SFY) 2014, ADOs reported that they:

• Helped 127 companies throughout the state relocate, expand, and grow through retention or startup.

• Recruited 12 companies to locate new facilities within the state. • Supported 46 expansions of businesses. • Worked on the recruitment/expansion of five businesses. • Retained 11 businesses. • Worked with 53 startups

Combined, these efforts led to 2,094.5 jobs being created and/or retained and $485 million in private investment. In comparison, ADOs created and retained 2,675 jobs and supported $455 million in private investment in fiscal year 2013.

Business Recruitment

ADOs recruited 12 companies statewide in SFY 2014, generating 1,717.5 new jobs. This included 520 new jobs in King County, 134 in Skagit, and 600 in Spokane. These three counties accounted for 55 percent of all jobs created in the state according to ADO reports. Counties not listed did not report job numbers.

County New Jobs Created Jobs Retained

Columbia 10

Cowlitz 50

Grant 91

King 520

Kitsap 49

Kittitas 11 5

Lincoln 13

Okanogan 6

Pend Oreille 40 1

Pierce 34 282

San Juan 11 7

Skagit 134 11

Skamania 32.5

Snohomish 15

Associate Development Organizations 6

County New Jobs Created Jobs Retained

Spokane 600

Stevens/Ferry 6 13

Thurston 0 35

Wahkiakum 13 3

Walla Walla 28 20

Whatcom 4

Yakima 50

Totals 1717.5 377 Source: ADO Quarterly Reports

Business Retention and Expansion

ADOs completed 11 retention projects and supported 46 expansions for the reporting period. The 11 retention projects retained 377 jobs. Business Startups

ADOs provided business startup services to 53 new businesses during 2013-14, compared to 75 in 2012-13.

ADO services have been impacted by budget reductions from partners at all levels: federal, public, and private. It is possible that this, along with a change in the way data is reported, contributed to the decline in the number of jobs and positive business outcomes created by the ADO network as compared to previous years.

Best Practices

In 2012, the Legislature made several changes to the annual contractual and reporting requirements of the ADOs, and the responsibilities of Commerce. One of these changes was for the ADOs to meet and share best practices with each other at least twice annually. Commerce coordinates these meetings. Additionally, the ADOs must provide a “summary of best practices shared and implementation” in their annual reports to Commerce (Appendix A).

Associate Development Organizations 7

State Audit Findings and Recommendations A “Performance Measures in Economic Development Programs” audit was conducted by the state Auditor’s Office in 2014. The purpose of the audit was to explore the role of ADOs as an economic driver in the areas of business recruitment, retention, expansion, investment, and jobs. The audit found it difficult to isolate the direct impact of ADO services, largely because so many variables must be factored into any local economic development effort, such as the availability of loans, suitable property, company sales, inflation rates, the price of raw materials, and other factors outside the control of local economic developers. The Performance Measures in Economic Development Programs, Audit Number 1012412, concluded, in part that:

• Commerce cannot measure ADO impacts due to a number of factors, including cross-collaboration between economic development interests; the difficulty in counting actual job gains/losses; the long timeline many projects take to reach fruition; and self-reported data that relies on uncorroborated numbers provided by the companies that were assisted.

• Commerce lacks the tools to collect accurate data required for decision making as well as clear authority to withhold grants based on missing performance targets.

• ADOs self-select their reporting criteria, potentially skewing data towards lower-priority activities in order to reach stated targets. The potential for skewing also exists within the different missions of each ADO, since many rural organizations focus on other economic development tasks that are not related to jobs, investments, recruitments or expansions.

• Commerce’s ability to set clear and consistent ADO goals is limited by the state’s statute regarding ADO grant funding and its desire to increase service effectiveness, efficiency, and outcomes. As such, outcome measures reflect only some ADO activities because some activities, such as capacity building and long-range planning, are difficult to track using outcome measures.

The audit closed with the recommendations that the Legislature:

• Establish clear goals for the program in consultation with Commerce and the ADOs. • Reform reporting requirements for both Commerce and the ADO program. • Improve performance measures based on clarified program goals, including reducing

the number of measures, and development of measures that communicate ADO progress, such as quality of work as well as program processes and outputs.

• Clearly define all measures while requiring that they be applied consistently throughout all ADO partnering organizations.

Associate Development Organizations 8

The State Auditor’s Office presented its findings at the Joint Legislative Audit Review Committee I-900 hearing on October 15, 2014. Shortly after that hearing, ADO representatives and Commerce formed a work group to address the Auditor’s recommendations and draft proposed language to change the ADO statute in the 2015 legislative session.

Appendix A: ADO Reports by County

10

Adams County Development Council

Summary of Best Practices Shared and Implementation

Grantee: Adams County Development Council Grant Number: S14-75106-408 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

NOTE: CHANGES IN UNEMPLOYMENT RATES REQUIRE BROAD SHIFTS IN HIRING AND JOB CREATION/ELIMINATION. ADO’s FOCUS ON KEY STRATEGIC PRIVATE INVESTMENTS THAT RESULT IN HIGH WAGE JOB CREATION IN SECTORS WITH STRONG MULTIPLIERS. THIS DOES NOT ALWAYS RESULT IN GREAT MOVEMENTS IN UNEMPLOYMENT NUMBERS – WHICH INCLUDE ALL WAGE LEVELS – NOT JUST HIGH WAGE JOBS.

• Current employment and economic information for the community or regional area produced by the employment security department;

Adams County Unemployment Rate: April 2014: 6.3% Source: Washington State Employment Security Department Most recent data available • The net change from the previous year's employment and economic information using data

produced by the employment security department; Adams County Unemployment Rate April 2013: 8.1% April 2014: 6.3% Net Change from April 2013 – April 2014: 1.8% Source: Washington State Employment Security Department Most recent data available

11

• Other relevant information on the community or regional area; Entrepreneur Week, November 18-22, 2013 Adams County Development Council, reached out to local high schools hoping to motivate, engage and equip high school students in Othello and Ritzville with the vision of becoming an entrepreneur. Recommendation for QUADCO Transportation Advisory Board, November 18, 2013 Adams County Development Council recommended board member Patrick Boss for the “Railroad” Position on the QUADCO Transportation Advisory Board. In terms of rail service and infrastructure, Burlington Northern Santa Fe Railway and Union Pacific Railroad have rail lines that run through the eastern half of the Adams County. Additionally, Columbia Basin Railroad Line (an 86-mile long short line) runs through the irrigated western half of the Adams County and provides rail service to Othello, Bruce and Schrag for many grains, frozen and fresh produce and other shippers. Recommendations for the Port of Othello, January 14, 2014 Adams County Development Council asked the Washington State Commerce Department to consider grant funding for a feasibility study for the Port of Othello, in Eastern Washington State. The funding was granted and will be used by the Port of Othello for development of an additional 42 acres adjacent to the Bruce Industrial Park. Interest in shovel-ready sites has been expressed by several companies. This development will aid in bringing economic stability to Adams County and Othello by providing increased growth and full time jobs. Adams County is an agricultural county with seasonal workers who seek year around work for a better quality of life. Interested businesses are reluctant to sign a contract until shovel-ready sites are available. This study will enable the Port to continue their development of this property and allow growth and stability in Adams County. A feasibility study is a requirement by state and federal funding sources for future infrastructure funding. Assisted a small business in writing a business plan, Othello, January, 2014 Foreign Trade Zone, April 2014 After many meetings and study the Adams County Development Council gained the participation of the Othello Port District and the Adams County Commissioners to move forward with acquiring an application to the Foreign Trade Zones Board to include Adams County within the Service area of FTZ No. 203. Currently the Port of Moses Lake has accepted the proposal, we are waiting for the final documents. This could take up to 8 months. Export Readiness Seminar on March 12-13, 2014 Adams County Development Council provided several scholarships to four Adams County Businesses. Partnering with the Washington Small Business Development Center we hosted a two day event including Trade Finance information, Export Banking service Representatives, one on one reviews with Trade Specialists and testimonials from local businesses that have moved onto the international market. Recommendation for the Adams County Workforce Council, April 2014 Adams County Development Council requested the nomination of Polo Garza, owner of Oasis Trucking Company, to represent Adams County with the Department of Social and Health Services on the Workforce Development Council as a board member.

12

Recommendation for the Adams County Workforce Council, June 2014 Adams County Development Council requested the nomination of Ken Johnson, owner of Johnson’s Glass, to represent Adams County with the Department of Social and Health Services on the Workforce Development Council as a board member. • The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $ 36,397.00 $36.397.00 $72,794.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $7,265.00 $7,500.00$ $14,765.00 Local $10,100.00 $10,500.00 $20,600.00 State Federal

Total Budget $ $ $35,365.00

• The ADOs impact on employment through all funding sources.

o ACDC during this period assisted a handful of businesses with questions regarding local business license practices, planning and permitting contacts and access to the Small Business Development Council’s support team.

o Supported the City of Ritzville in its efforts to welcome the Love’s Truck Stop

during the groundbreaking and ribbon cutting marking the opening of the new facility.

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Southeast Washington Economic Development Association – Asotin, Columbia, Garfield & Whitman Counties

Summary of Best Practices Shared and Implementation

Grantee: Southeast Washington Economic Development Association – Asotin, Columbia, Garfield and Whitman Counties Grant Number: S14-75106-432 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

Asotin Co – 5.1% Unemployment down from the previous year-- Labor Force 9520 Garfield Co – 7.2% Unemployment – Labor Force 800

Columbia Co. – 8.4% Unemployment – down from previous year – Labor Force 1420 Whitman Co. – 5% Unemployment – down from previous year – Labor Force 20990

• The net change from the previous year's employment and economic information using

data produced by the employment security department; Asotin Co. - Net change – Labor Force down 260. -2.6% change Columbia Co. – Net Change – Labor Force same at 1420 no change. Garfield Co. – Net Change – Labor Force down 160

Whitman Co. – Net Change – Labor Force down 120 -1.5% change • Other relevant information on the community or regional area;

The ADO employees in Asotin, Columbia, Garfield, and Whitman Counties for the Southeast Washington Economic Development Association (SEWEDA) engage with the development and retention of local and regional businesses throughout the four Counties. This is accomplished through:

o Recruitment and Marketing Recruitment opportunities are few in the rural region of SE Washington, but have included working with Department of Commerce leads, as well as

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developing opportunities developed locally. Specific opportunities have presented themselves in: value-added agriculture, analytic/scientific laboratory, agricultural by-product manufacturing and light manufacturing.

o Business Retention and Expansion Regional business retention and expansion is a primary focus area for SEWEDA in all four counties. Consistent efforts are made to maintain current information regarding available buildings and assistance programs. Connections are consistently made between the needs of businesses and resource providing organizations. SEWEDA provides leadership connecting the PKC with the WWCC/Avista Entrepreneurship Program and Blue Mountain Station, from Pullman through Dayton.

o Business Assistance Direct assistance has been made to businesses in: value-added agriculture, ‘Main Street’ service businesses, technical business startups, large scale agriculture operations, small manufacturers within several industries, and with a number of startup companies establishing regional operations.

o Readiness and Capacity Building Direct involvement with marketing industrial properties, seeking grant funding for regional programs, and continuing leadership in regional business education workshops.

• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Asotin County $37,904.00 $37,904.00 $75,808.00 Columbia County 31,020.00 31,020.00 62,040.00 Garfield County 30,350.00 30,349.00 60,699.00 Whitman County 45,879.00 45,879.00 91,758.00 Commerce Funds Awarded $145,153.00 $145,152.00 $290,305.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private Counties/Cities Local 4725 4725 9450

State EDA Federal 75,000 75,000 150,000

Total Budget $79,725 $79,725 $159,450

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• The ADOs impact on employment through all funding sources.

Wind: Two recent projects, one in Whitman County, and a currently being constructed

project in Columbia County have provided numerous temporary positions for construction activities, provide permanent positions, as well as substantial monetary investments into the projects. SEWEDA has facilitated local sourcing for contractors and labor, permitting issues, and local contact facilitations.

Blue Mountain Station: The Port of Columbia, with SEWEDA assistance on some grants

and technical assistance has opened BMS, and artisan food center that houses 5 start-up value-added agriculture operations that are expanding their markets. 9 FTE’s created, with five new business starts to date.

In Garfield County, two new business start-ups assisted through SEWEDA with assistance

from business education classes and Technical Assistance provided. Five FTE’s created, $500,000 in capital improvements and investments.

Local assistance provided to recruiting with the Department of Commerce as a partner, the

Westwinn Group that has merged with Renaissance Marine to add approximately 20 jobs to their jet boat manufacturing facility in Clarkston. Additional support made to Renaissance through the Governor’s strategic investment in their supervisory training at $140,000 to date.

Deep impactful involvement upon the Technical Assistance Committee, Celebration

Committee, and as mentor with the Avista/Walla Walla Community College Entrepreneur Development Program which graduated the first cohort of 11 businesses in June, undetermined number of jobs created and retained. Investments are projected to be between $1.5 to $2 million for these businesses at start-up for the group total, once the businesses are fully formed and in operation. Two current businesses are planning expansions, with employment and investment numbers unavailable at this time.

Lead agency for grant acquisition for the initial Palouse Knowledge Corridor’s ‘Be the

Entrepreneur’ Bootcamp held in June. 13 businesses attended to develop their models, with several startups in the mix. Additional support was provided through the Whitman County ADO position as lead conference facilitator, with additional mentoring support through regional economic development. As this was a multi-state effort, many organizations on both sides of the border were involved in making the event a success from a business development perspective.

Consistent technical support given, from all four counties, to Columbia Pulp -, a start-up

pulp mill utilizing surplus wheat straw. Facilitation services across the four counties to tie the management to resource producers, ongoing technical assistance to minimize permitting issues, financing assistance, and community facilitations provided. Construction slated to start in 2015, with 160 FTE’s projected after construction is completed on phase one.

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Tri-City Development Council – Benton & Franklin Counties

Summary of Best Practices Shared and Implementation

Grantee: Tri-City Development Council – Benton, Franklin Counties Grant Number: S14-75106-439 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area

produced by the employment security department;

See attachments

The net change from the previous year's employment and economic information using data produced by the employment security department;

Increase in 4,670 jobs from July 2013 to July 2014 • Other relevant information on the community or regional area; Economic activity in Benton and Franklin Counties slowed and employment decreased as stimulus funded projects at the Hanford Nuclear Reservation were completed in 2012. Historically, such downsizing severely impacted the local economy. This time, however, TRIDEC’s success in promoting business growth and diversity softened the blow. Agriculture and food processing, education and healthcare services, retail trade and food services combined to lessen the impact of job losses at Hanford. Population growth continues to drive demand for education and healthcare services. Manufacturing and agriculture, wholesale trade, transportation and warehousing industries are growing. Research and development, manufacturing, and food processing will play a big role in the future prosperity of Benton and Franklin Counties.

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• The amount of funds received by the ADO through its contract with the department; FY 14 FY15 Total Benton County $91,850.00 $91,849.00 $183,699.00 Franklin County 52,583.00 52,583.00 105,166.00 Commerce Funds Awarded $144,433.00 $144,432.00 $288,865.00 • The amount of funds received by the ADO through all sources; Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $629,400 $629,400 $1,258,800 Local 235,313 235,313 470,626 State 485,000 0 485,000 Federal 406,100 311,273 717,373

Total Budget $1,755,813 $1,175,986 $2,931,799 • The ADOs impact on employment through all funding sources. The Tri-City Development Council (TRIDEC) is the lead economic development organization serving the Kennewick-Pasco-Richland, Washington Metropolitan Statistical Area (MSA). The MSA includes Benton and Franklin Counties and is also known as the “Tri-Cities”. TRIDEC is organized as a private not-for-profit corporation governed by a forty member Board of Directors. TRIDEC is supported by 350 member firms and local governments. The organization is designated as the Community Reuse Organization (CRO) for the Hanford Site by the Department of Energy and the Associate Development Organization (ADO) for the Tri-Cities by the Washington Department of Commerce. TRIDEC’s marketing program has followed a Regional Marketing Strategy developed by Angelou Economics, an Austin, Texas based consulting firm. The Strategy has been refined to focus on three target industry sectors; Research & Development, Technology Manufacturing with an emphasis on energy, and Food Processing/Value Added Agriculture. In July 2013 TRIDEC Staff developed a Request for Proposal and Scope of Work for a “New Economy Target Industry Program” which would update the Angelou study. Seven responses to the RFP were received in August. Three finalists were selected and interviewed in September. In November 2013 TRIDEC signed a contract with TadZo Consultants for a “New Economy Target Industry Analysis”. TadZo is a Yakima, Washington based economic development consulting firm. The analysis was completed in March 2014 and was presented to TRIDEC’s membership at the 2013 Annual Meeting. The report included a Competitiveness Report Card, Competitor Intelligence, Target Industry Recommendations as well as recommendations on activities that TRIDEC could do to be more successful in recruiting new business. Based on the TadZo recommendations TRIDEC’s current and future business recruitment efforts will focus on Logistics, Food

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Processing, Machinery Manufacturing, Carbon Fiber Manufacturing, Training, and Energy, including smart grid, solar testing, biofuels, and small modular reactors. Also in FY 2014 TRIDEC, the Tri-City Visitor and Convention Bureau and the Tri-City Regional Chamber of Commerce retained the firm of Roger Brooks International to develop a Tri-City Community Brand. Ten firms responded to an RFP sent out in mid-summer. Five firms were selected for interviews. The concept was introduced to the community in October 2013. As part of the process the Brooks team spent a week in the Tri-Cities in January conducting interviews and familiarizing themselves with the community. In March they conducted a “Brand Camp” which included introducing a preliminary concept to the principals. The process is scheduled to be completed in June 2014. Throughout the FY 2014 TRIDEC participated in many tradeshows and events to bring attention to the Tri-Cities and make industry contacts. In September 2013 and the spring of 2014 TRIDEC staff participated in the semi-annual meeting of the Industrial Asset Manager’s Council (IAMC) meeting in Salt Lake City, Utah, and Pinehurst, North Carolina. IAMC is a national association of corporate real estate executives and site selection consultants. TRIDEC sponsored a breakfast at the meeting which was attended by approximately 200 corporate executives, site selection consultants and other economic development organizations. TRIDEC also took the lead in organizing a private dinner for several corporate real estate executives and two site selection consultants. The dinner was hosted by the States of Washington and Oregon, TRIDEC, and the City of Renton Washington Other shows TRIDEC participated in were PowerGen, and the Northwest Food Processors and Packaging meeting in Portland, Oregon. PowerGen is one of the country’s largest trade shows focused on energy. A number of good contacts were made and TRIDEC committed for booth space for the 2014 show. TRIDEC also is extensively involved in efforts to improve the availability and quality of workforce education and training programs in the Tri-City region. These programs include: The Advisory Council for Washington State University Tri-Cities (ACT) is comprised of business, civic, and education leaders who have a strategic interest in WSU Tri-Cities. The Advisory Council’s primary mission is to foster closer ties between WSU Tri-Cities, its alumni, plus the community, region, and state. The ACT has supported development of the WSU Tri-Cities Wine Science Center. The center is critical to the future growth of the Washington wine industry, positioning the Tri-Cities and WSU as one of the top leading research and teaching programs in the world of wine. Benton-Franklin Workforce Development Council – The Benton - Franklin WDC is a business led board that coordinates and leverages workforce investments and strategies with stakeholders from education, economic development, labor and community based organizations to advance the economic health of their communities through a skilled and competitive workforce. Delta High School offers courses with a heavy focus on the STEM fields: science, technology, engineering, and mathematics. STEM is an acronym referring to the academic disciplines of science, technology, engineering, and mathematics. STEM programs improve competitiveness in technology development, having implications for workforce development, national security concerns and immigration policy.

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Port of Chelan County

Summary of Best Practices Shared and Implementation

Grantee: Port of Chelan County Grant Number: S14-75106-410 Time Period Covered: July 1, 2013 – June 30, 2014

Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

Chelan / Douglas Counties (Wenatchee MSA) Labor Area Summary for May 2014 states Unemployment is 7.3%; local nonfarm jobs filled were 41,100, total labor force was approximately 56,850; agricultural employment stays strong with anticipated good harvest conditions.

• The net change from the previous year's employment and economic information using

data produced by the employment security department; Chelan / Douglas Counties (Wenatchee MSA) Labor Area Summary for states Unemployment has decreased from 7.9% in 2013 to 7.3% in 2014; local nonfarm jobs filled increased from 40,300 in 2013 to 41,100 in 2014, total labor force decreased slightly from 57,250 in 2013 to 56,850 in 2014.

• Other relevant information on the community or regional area; Activity in the region continues to gain in job growth, reducing the unemployment rate. Development activity continues in Wenatchee with the new Pybus Public Market open for one year, and many construction projects including work live apartment complex. Holden Mine continues with clean up increasing activity this past year. The Port of Chelan County assisted in Confluence Health expansion with a contact center employing 32, US Mat employing 50, and multiple small businesses looking for business assistance to expand, strengthen their business to maintain jobs, as well as start-ups.

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• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $57,900.00 $57,899.00 $115,799.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Lease Income Private $1,278,850 $1,311,250 $ 2,590,100 Tax Collected & Local

Project Passthrough Local $2,783,648 $2,468,639 $5,252,287 DOE Project/CERB

Projects State $2,965,060 $3,599,505 $6,564,565 FHWA Project Federal 0 $168,145 $168,145

Total Budget $7,027,558 $7,547,539 $14,575,097

The Port of Chelan County operates under a Calendar Fiscal year. Numbers provided in FY14 column are Calendar Budget numbers from 2013, and FY15 are Projected Calendar Year 2014. Pangborn Memorial Airport operations are a separate entity and are not included in this funding summary.

• The ADOs impact on employment through all funding sources. The Port of Chelan County has a total of 17 tenants that employ 380. Separately, the Port owned Pybus Public Market building, located in Wenatchee, is leased to the Pybus Market Foundation. The facility has 19 retail businesses employing approximately 50. The Port owned Industrial Building #3 new houses the Confluence Health Contact Center employing 32 and included $1,000,000 in private capital investment. The Port of Chelan County assisted with the move of US Mat from Oregon to Chelan County brought 50 jobs and additional unknown capital investment. The Port successfully recruited Yahoo Japan for datacenter space with additional capital investment. Business assistance through the Small Business Development Center continues to help with business retention, expansion and start-up businesses.

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Clallam County Economic Development Council

Summary of Best Practices Shared and Implementation

Grantee: Clallam County Economic Development Council Grant Number: S14-75106-411 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

• Current employment and economic information for the community or regional area

produced by the employment security department;

• Civilian Labor Force – 26,820 • Employment – 24,620 • Unemployment – 2,200 • Unemployment rate – 8.2%

• The net change from the previous year's employment and economic information using

data produced by the employment security department;

NET CHANGE

• Civilian Labor Force – Down by 780 • Employment – Down by 460 • Unemployment – Down by 320 • Unemployment Rate – Down by 0.9%

• Other relevant information on the community or regional area; Our main focus was the forestry industry and these are the greatest needs and concerns: L & I insurance high costs are crippling many businesses • Government regulations are cumbersome, and create challenges and obstacles. • Permitting process is time consuming and length.

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• Basic skilled labor needed in the area of CDL drivers, mechanics, welders • Focus on Forks with respect to pairing students or unemployed with Forks Businesses • Those in the Timber Industry need more input or collaborate to manage forest • Allow salvage of timber downfall, allowing for an equal balance of needs to the eco system,

clean water/air, while reducing numbers of forest fires by selective salvage of downfall for import/export

• Private lands are available, however more and more regulations of state forest/trust lands are squeezing out the independents in the Industry

• Funding/resources needed to be in line with government regulations based on clean air/water act

Marine trades needs and concerns:

Leased properties respect to expansion (if it were to be considered) to have an incentive for expansion to the property lessee. Example: Resources/funding for infrastructure improvements or upgrades necessary for expansion. Composites companies that were visited did not address and needs or concerns at this time and expressed that overall the composites industry is doing well.

Retail needs and concerns:

• Could use more customers and tourism is down, which equates to lower volumes of sells, especially with respect to more rural areas between Port Angeles and Forks.

• The smaller, specialty retail businesses struggle against the competition of the box stores.

The number of these visits that were located outside of the City of Port Angeles was 14 the remaining 10 were from Port Angeles.

These needs and concerns have been brought to the Clallam EDC board of directors so that we can develop a plan in how we are going to address the needs and concerns of the businesses that were visited this quarter.

In addition to the business retentions visits above the Executive Director, Bill Greenwood has visited many businesses over the last three months. He has been making connections with the local businesses and introducing himself as the new director and gaining a great understanding of the businesses throughout Clallam County.

• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $ 36,397.00 $36.397.00 $72,794.00

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• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $15,475.00 $15,475.00 $30,950.00 Local $104,315.00 $104,315.00 $208,630.00 State Federal

Total Budget 175,827.00$ 175,827.00$ 351,654

• The ADOs impact on employment through all funding sources.

The number of business that we have conducted Business Retention, Expansion, and Innovation for this quarter was 24. Broken down by industry. These are the number of business that we have visited and addressed needs and concerns of doing business in our county.

• Forestry Industry - 13 • Marine Trades - 3 • Composites - 2 • Retail – 6

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Columbia River Economic Development Council – Clark County

Summary of Best Practices Shared and Implementation

Grantee: Columbia River Economic Development Council Grant Number: S14-75106-412

Time Period Covered: July 1, 2013 – June 30, 2014

Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area

produced by the employment security department;

On the positive side, Clark County in May had the fastest growth rate for any metropolitan county in the state, at 3.7 percent. Employment growth has been broad-based, with every sector except for manufacturing and government adding jobs at a healthy clip. The county has more than recovered the jobs lost in the recession. However, after adjustment for population growth, the county is still well below the number of jobs it needs. Unemployment remains more than a point above the state average. A large number of people have dropped out of the labor force. There are a lot of long-term unemployed. And there has been a shift towards more part-time employment. (Provided by Scott Bailey at WA ESD)

• The net change from the previous year's employment and economic information

using data produced by the employment security department;

The county has added 5,100 jobs (3.7 percent) in the past year. In 2013, the average annual wage was $44,753, well below the state average of $52,635. (Provided by Scott Bailey at WA ESD)

• Other relevant information on the community or regional area;

Clark County has identified six key target sectors poised for growth over the next ten years:

- Technology Services - Technology Products (high tech, advanced manufacturing) - Wealth Management Services - Agricultural Processing - Healthcare Management - Logistics and Distribution

25

CREDC is the program administrator for the Greater Portland’s five federal agency Advanced Manufacturing Jobs and Innovation Accelerator Challenge Grant “Innovations in Advanced Materials and Metals Manufacturing Project”, which focuses on growing the advanced manufacturing sector in the Portland region through activities such as supply chain development, increasing foreign direct investment and promoting imports/exports, and supporting the manufacturing workforce.

CREDC is also a subcontractor on the Portland Development Commission’s Jobs and Innovation Accelerator Challenge Grant “Clean Tech Advance”, which promotes strengthening the clean tech and clean tech manufacturing industries in Clark County.

• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds

$164,324.00 $164,324.00 $328,648.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14

FY 15

Total

Private $431,775 $431,775 $863,550.00 Local $185,150 $185,150 $370,300.00 State $164,324 $164,324 $328,648.00 Federal $192,068 $192,068 $384,136.00 Total Budget $973,317.00 $973,317.00 $1,946,634.0

• The ADOs impact on employment through all funding sources. Please see attached CREDC’s Annual Report.

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2013 ANNUAL REPORT

Accelerating Business Growth and Innovation Serving Clark County since 1982, the Columbia River Economic Development Council (CREDC) is a private-public partnership of

140 investors and strategic partners working together to advance the economic vitality of Clark County through business growth and innovation. The mission of the CREDC is to develop a strong, innovative Clark County, Washington business environment in

collaboration with our private and public sector partners. Below is an overview of the work completed in 2013 on CREDC’s strategic initiatives to assist new and existing Clark County companies grow. For more information, go to www.credc.org.

BUSINESS GROWTH • Visited over 100 traded sector companies • Assisted five “new-to-market” and four “new-to-export” companies • Conducted four business forums • Partnered in the coordination of a business development trade mission including

seven regional metal fabricators, which resulted in at least $1 million in business opportunities with each other and several other opportunities to provide fabri- cated subassemblies and components to the region

BUSINESS RECRUITMENT & EXPANSION • Assisted eight companies with relocation to Clark County • Worked with five existing companies on successful expansion projects • Together, 2013 recruitment and expansion projects will bring an estimated 650

jobs and $30 million in new capital investment upon completion

ENTREPRENEURSHIP & INNOVATION • Produced five PubTalk(TM)* events • Co-sponsored event with Keiretsu Forum to connect selected Clark County start-up

companies with angel investors • Coordinated the first Digital Innovation Showcase • Partnered on successful Department of Commerce Innovation Partnership Zone

designation: Vancouver-Camas Applied Digital Technology Accelerator • Contracted for CREDC Entrepreneurial Strategy 2.0 report to guide entrepreneur-

ship efforts

LAND FOR JOBS • Continued three Land for Jobs subcommittees comprised of both public and pri-

vate partners: Permitting Policy, Land Inventory, and Site Certification • Continued efforts to advocate for an infrastructure-focused legislative agenda • Continued to work with the Department of Ecology and Department of Commerce

to meet the industrial development needs of Clark County

EDUCATION • Developed new Internship Resources website page through Education Committee • Participated in Engineering Showcase at WSUV and Mechatronics and Machining

Open Houses at Clark College • Highlighted WSUV Creative Media and Digital Culture faculty and student projects

at Digital Innovation Showcase • Represented economic development on the Southwest WA STEM Network, WSUV

Advisory Committee, Clark College Worker Retraining Advisory Committee, CTE General Advisory Committee, VPS Management Task Force, Clark County Skills Center Advisory Committee

Business Recruitment

Highlight: Integra

Founded in 1996, Integra is one of the

largest facilities-based providers of communication and network-

ing services in the western United States, with approximately 1,800 employees and more than 85,000 customers across eleven states.

After collaboration and strong

leadership by the City of Vancouver, Integra announced in April 2013

that it would be relocating its cor- porate headquarters to Vancouver,

bringing over 400 employees and al- lowing the company to consolidate most workers under one roof. After renovating 85,000 square feet of the

former Hewlett-Packard campus, Integra completed the move in May

2014 slightly ahead of schedule.

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*The service mark PubTalk (TM) is owned by Oregon Entrepreneurs Network, and is being used with OEN’s permission.

Business Expansion Highlight: Foods In Season

Underwriters Laboratories

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Cowlitz Economic Development Council

Summary of Best Practices Shared and Implementation

Grantee: Cowlitz Economic Development Council Grant Number: S14-75106-413 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

Current employment and economic information for the community or regional area produced by the employment security department;

The current unemployment rate as of May 2014 is 8.5%

• The net change from the previous year's employment and economic information using

data produced by the employment security department; The previous year’s unemployment rate was 10.4% with a net change of -1.9%

• Other relevant information on the community or regional area; In November of 2013 we attended the Mission to China along with the Governor’s Office, Department of Commerce and colleagues. The result of the mission was belief that the NW Innovations project could be successful as a tenant at the Port of Kalama. Since the mission, the company and Port agreed to a long term lease. Permitting is now underway and could result in a $1.8 Billion capital investment and 240 family wage jobs for Cowlitz County. The trip revealed the potential for our area for more trade and economic opportunity in China. In April of 2014 the CEDC again travelled to China with our partners at Lower Columbia College and the City of Longview. The result was an MOU signing with a college in China to bring students to LCC and an MOU signing with a District in China to develop a Sister city relationship. The college expects some students to arrive this Fall and a delegation from China will be in Longview in July to continue discussions on the Sister city relationship. We continued our partnership with Site Location Partners who attend Trade Shows across the United States for us. This is an inexpensive way for us to leverage our resources, market to a large audience and save on the cost of travel.

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In the last few months we engaged Point B, a consulting firm, and began a process to update our Strategic Plan. Our last plan came out in 2010 and the Board and staff felt it is time for an update. The plan will roll out in September of 2014 with a large community event. • The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $70,317.00 $70,316.00 $140,633.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $165,483.00 $170,000.00 $ 335,483.00 Local 96,500.00 126,500.00 223,000.00 State 70,317.00 70,316.00 140,633.00 Federal 97,000.00 97,000.00 194,000.00

Total Budget $429,300.00 $463,816.00 $893,116.00

• The ADOs impact on employment through all funding sources. Below is a list of projects that have taken place or our currently in the permitting phase and their job impacts or potential impacts. The projects are a variety of recruitment, retention and expansion cases. In all cases the CEDC has worked multiple hours assisting with permitting, workforce, incentives and a myriad of other issues. Millennium Bulk – Permitting phase for a $650mm coal export facility creating over 100 jobs. NAP Steel – 90K sq ft expansion and 30 new jobs. Portland Recycling – Purchased a closed manufacturing facility and will put in a $10mm capital investment and employ over 30 people. KapStone – Our second largest private employers continues to expand adding over 50 new jobs.

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Haven Energy – Started permitting for a $240mm propane/butane facility which will create 300 construction jobs for 2 years and over 50 permanent jobs. Ashtown Brewing – New investment with craft brew and restaurant. 10 new jobs, but even more importantly it opens new sector for the area. NW Innovation Works – Recently signed a 50 year lease and are permitting a $1.8 Billion methanol manufacturing plant which will create 1,000 construction jobs for 6 years and over 240 full time jobs to operate the plant. Temco Grain Elevator – Expanding and completing a $200mm upgrade of the facility. Bennu Glass – Hired 10 new employees at the wine bottle manufacturing plant. AcTech - rock crushing/conveyor manufacturing firm located and created 25 new jobs. AIMMCO – Injection molding company in Woodland expanded by 15 new jobs. Columbia River Carbonates – Manufactures calcium carbonate products are currently permitting a new berth on the Columbia River to expand their business. American Paper Converting - Expanding their facility Woodland facility by 60K sq ft and hiring 30 new employees.

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Port of Douglas County

Summary of Best Practices Shared and Implementation

Grantee: Port of Douglas County Grant Number: S14-75106-414 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

Local nonfarm employers provided 43,500 nonfarm jobs this July, a 1,200 job and 2.8 percent expansion from the 42,300 jobs tallied in July 2013. The Wenatchee Metropolitan Statistical Area (MSA) has now registered year-over-year employment increases for the past 26 months (from June 2012 through July 2014). The Wenatchee MSA's Civilian Labor Force in July 2014 was 73,350, a 3% increase from July 2013. This increase is likely due to strong agricultural hiring during July 2014 (the peak of the cherry harvest). Overall the labor force expanded and the number of unemployed contracted causing the unemployment rate to decrease one and four-tenths percentage points down to 3.9% – good news for our local economy.

2014 unemployment rates by month

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• The net change from the previous year's employment and economic information using data produced by the employment security department;

The Wenatchee MSA's nonfarm labor market provided 900 new jobs between 2012 and 2013, an annual average increase of 2.3 percent, identical to the job growth rate statewide during 2013. The Wenatchee MSA's Civilian Labor Force (CFL) decreased 2.9 percent in 2013. It continued to shrink in the first six months of 2014. But, this scenario changed in July 2014 when approximately 73,350 Chelan and Douglas county residents were in the labor force, a 3.0 percent increase from the 71,210 residents in the CLF in July 2013. Also, 890 fewer residents were unemployed in July 2014 versus July 2013.

Not seasonally adjusted estimates indicate that Wenatchee MSA nonfarm employment rose to 43,500 in July 2014 from the 42,300 jobs tallied in July 2013, a 1,200 job and 2.8 percent increase. Highlights of year-over- year changes follow (as shown in Figure 3): Mining, logging and construction employment in the Wenatchee MSA provided 2,200 jobs in July 2013 and 2,500 jobs in July 2014, a strong 13.6 percent and 300 job increase. Most jobs in the combined “mining, logging and construction” category are in construction. Year over year, construction employment has been growing in the Wenatchee MSA for the past 19 months (from January 2013 through July 2014) and on an annual average basis, this industry netted 300 new jobs last year. However, according to the August 2014 Real Estate Snapshot newsletter published by Pacific Appraisal Associates, in the Wenatchee Market (i.e., in Wenatchee, Malaga, East Wenatchee, Orondo and Rock Island, WA), the number of homes and condos sold from January through July 2014 was 436, down 8.0 percent from the 474 sold in the corresponding first seven months of 2013. The dollar volume of these homes and condominiums sold also decreased, from $114.5 million in January through July 2013 to $112.3 million in the corresponding period this year, a 1.9 percent downturn. However, the median home price in the Wenatchee Market increased to $225,000 in the first seven months of 2014 compared with $215,000 in January through July 2013, a 4.7 percent upturn. Thus, fewer homes and condominiums were sold in the Wenatchee Market in the first seven months of 2014 versus the corresponding seven-month period last year and the dollar volume sold also declined over the year. These data suggest that a greater proportion of construction hiring is occurring at industrial,

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commercial, or institutional building projects than at residential construction sites. Private education and health services increased by 100 jobs, up 1.5 percent, between the Julys of 2013 and 2014. Year over year, the Wenatchee MSA's private education and health services industry has added jobs for 19 months (from January 2013 through July 2014). Statewide, this industry has been adding workers for at least the past 79 months (from January 2007 through July 2014). The Wenatchee MSA's leisure and hospitality industry (primarily hotels and restaurants) has lost jobs, year over year, for the past two months. Between the Julys of 2013 and 2014 leisure and hospitality decreased from 5,900 to 5,700 jobs across Chelan and Douglas counties, a 200 job and 3.4 percent contraction. Conversely, Washington's leisure and hospitality industry has grown for 46 months (from October 2010 through July 2014). Between the Julys of 2013 and 2014, local government employment increased from 6,500 to 6,600 positions, a 100 job and 1.5 percent increase.

Figure 3 Change

Wenatchee MSA Preliminary Revised Revised Jun-14 Jul-13 Jul-13

Jul-14 Jun-14 Jul-13 Jul-14 Jul-14 Jul-14 % Labor force and unemployment Civilian labor force 73,350 63,930 71,210 9,420 2,140 3.0%

Resident employment 70,480 61,120 67,450 9,360 3,030 4.5% Unemployment 2,870 2,810 3,760 60 -890 -23.7% Unemployment rate 3.9 4.4 5.3 -0.5 -1.4

Industry employment (numbers are in thousands) Total nonfarm 1 43.5 42.6 42.3 0.9 1.2 2.8% Total private 34.8 33.9 33.7 0.9 1.1 3.3% Goods producing 5.3 5.1 4.9 0.2 0.4 8.2%

Mining, logging and construction 2.5 2.4 2.2 0.1 0.3 13.6% Manufacturing 2.8 2.7 2.7 0.1 0.1 3.7%

Service providing 38.2 37.5 37.4 0.7 0.8 2.1% Private services providing 29.5 28.8 28.8 0.7 0.7 2.4% Trade, transportation, warehousing and

utilities

10.3

10.0

10.4

0.3

-0.1

-1.0% Retail trade 5.9 5.9 5.9 0.0 0.0 0.0%

Education and health services 6.6 6.6 6.5 0.0 0.1 1.5% Leisure and hospitality 5.7 5.6 5.9 0.1 -0.2 -3.4% Government 8.7 8.7 8.6 0.0 0.1 1.2%

Federal government 1.0 0.9 1.0 0.1 0.0 0.0% State government 1.1 1.0 1.1 0.1 0.0 0.0% Local government 6.6 6.8 6.5 -0.2 0.1 1.5%

Workers in labor/management disputes 0.0 0.0 0.0 0.0 0.0 1Excludes proprietors, self-employed, members of the armed services, workers in private households and agriculture. Includes all full- and part-time wage and salary workers receiving pay during the pay period including the 12th of the month. Columns may not add due to rounding.

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• Other relevant information on the community or regional area; According to reports from our Airport manager Pangborn Memorial Airport has experienced a year over year increase in passenger travel every month in 2014. In 2005 the Port worked with Douglas County and the Douglas County Sewer District to complete a sewer extension to the Pangborn Industrial Service Area. From 2006 to 2012 the assessed property valuations for the industrial service area increased from $12,798,400 to $88,894,800 ($76,096,400 increase) and this was during the recession. According to the department of revenue Douglas County experienced a 26% increase in taxable retail sales between 20012 and 2013.

Douglas County Taxable Retail Sales Comparison 2012 to 2013 By North American Industrial Classification System (NAICS)

Industry and NAICS Number Taxable Retail Sales

Taxable Retail Sales

Year over Year Change

2012 2013 Retail Trade 44-45 Total: $280,088,174 $324,073,842 $43,985,668 16% Agriculture, Forestry, Fishing 11 Total: $631,223 $983,055 $351,832 56% Mining 21 Total: $7,457 $176,164 $168,707 2262% Utilities 22 Total: $695,558 $909,652 $214,094 31% Construction 23 Total: $78,904,317 $142,858,245 $63,953,928 81% Manufacturing 31-33 Total: $9,792,090 $18,396,994 $8,604,904 88% Wholesale Trade 42 Total: $57,905,268 $88,600,910 $30,695,642 53% Transportation & Warehousing 48-49 Total: $2,348,448 $2,971,173 $622,725 27% Information 51 Total: $22,188,701 $21,714,137 ($474,564) -2% Finance, Insurance 52 Total: $1,470,531 $1,647,780 $177,249 12% Real Estate, Rental/leasing 53 Total: $7,244,531 $8,776,260 $1,531,729 21% Professional, Scientific & Technical Services 54 Total: $52,529,145 $42,875,632 ($9,653,513) -18% Management, Education & Health Services 55-62

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Grant County Economic Development Council

Summary of Best Practices Shared and Implementation

Grantee: Grant County Economic Development Council Grant Number: S14-75106-417 Time Period Covered: July 1, 2013 – June 30, 2014

Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

Total Employment in a city or county or state are influenced by factors beyond any one entities ability to control or influence. For example in Grant County a hailstorm that wipes out large portions of the cherry crop severely limits the number of people working at the processing facilities for cherries. Even though our organization has helped these processing plants expand and add jobs, this isolated event can still negatively affect total employment numbers at these plants even though it has nothing to do with the ADO’s performance or the businesses efforts. 2013 total nonfarm employment (not seasonally adjusted): 38,020 2013 unemployment rate: 8.8% “The average annual total covered wage in 2012 was $34,482, well below the state’s average annual wage of $51,964. Although 2012 median wage data are not available for Grant County, the median hourly wage in 2011 was $15.06, below the state’s median hourly wage of $21.59” (https://fortress.wa.gov/esd/employmentdata/reports-publications/regional-reports/county-profiles/grant-county-profile#wages)

• The net change from the previous year's employment and economic information

using data produced by the employment security department;

2013 total nonfarm employment (not seasonally adjusted): 38,020 2012 total nonfarm employment (not seasonally adjusted): 37,520

Difference: 500

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2013 unemployment rate: 8.8% 2012 unemployment rate: 9.6%

Difference: -0.8 • Other relevant information on the community or regional area; Grant County’s competitive business assets include an international airport, a foreign trade zone, low electric rates, inexpensive land, a high speed fiber optic network, a local community college, Interstate 90, easy access to rail via intermodal terminals, a highly trained workforce, and over 1,800 farms that annually produce crops and livestock valued at $1.19 billion. As one of the largest agriculture counties in the nation, increasing agricultural processing capacity in key Grant County areas will greatly improve profitability and efficiency for fruit and vegetable production. Many of the crops grown locally are processed in the County. Over 2,100 people work directly in food processing, making it a $364 million industry that has plenty of room to grow as growth in raw agriculture product continues to expand. With a higher concentration of industrial manufacturing workers than Spokane or Seattle, this sector of the economy is ready for continued growth. Innovative companies in this sector benefit from all of the assets listed above and the EDC specifically targets those companies that have the greatest comparative advantage for a Grant County location. To build on these assets for continued economic growth the Grant County EDC has established an innovative industrial and agri-business recruitment strategy. The main goals of the economic growth strategy are: • Assist with expansion of local agriculture and industrial related business • Assist companies in establishing new facilities in Grant County with focus in the following

sectors: aerospace, agribusiness, chemical, composites, and general manufacturing. • Grow the retail and service sector • Assist in economic development infrastructure projects that result in new job creation and

new business development in Grant County. Projects could include but are not limited to roads, rail, intermodal, water and sewer, fiber optic capacity, building rehabilitation, etc.

• The amount of funds received by the ADO through its contract with the

department;

FY 14 FY15 Total Commerce Funds Awarded $63,391.00 $63,391.00 $126,782.00

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• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $152,460.00 $152,460.00 $304,920.00 Local $229,150.00 $229,150.00 $458,300.00 State $63,391.00 $63,391.00 $126,782.00 Federal $0.00 $0.00 $0.00

Total Budget $445,001$ $445,001$ $890,002

• The ADOs impact on employment through all funding sources. Job Creating Success Stories - The Grant County EDC assisted the following companies with site selection, environmental and city permitting, utilities, and incentives:

• SGL Automotive Carbon Fibers (Project Chinook) completed primary construction of its second facility and broke ground on a third facility to make its Washington plant the largest carbon fiber manufacturing operation the world. An additional 120 jobs are being added to the facility (46 positions have already been filled) and employment will be at 200 by mid-summer 2015. Current employment is 126. In total, SGL Automotive Carbon Fibers will have invested $300 million in this manufacturing plant.

• AstaReal, (Project Jackson) a nutraceutical company, located a new facility in Moses Lake and hired 45 people. The 59,000 square foot facility represents an investment of over $30 million and will be in full operation in July of 2014.

• Amway/Nutrilite (Project Way) has finished construction on its 48,000 square foot facility in Quincy and hiring is continuing to bring the total workforce up to approximately 60 employees. The plant will become fully operational in the summer of 2014. The company invested $38 million in this project

• Boeing 777X announced that Washington State would be the home of the new 777x final assembly including wing fabrication. The executive Director of the Grant County EDC served actively on the board of the Washington Aerospace Partnership along with other ADO’s. As a statewide economic development organization, the Washington Aerospace Partnership worked closely with Boeing to ensure the project stayed in Washington. This project represents an investment of $4 billion and thousands of aerospace jobs.

Job Creating Projects Started – The Grant County EDC hosted eleven company visits to the County. The EDC facilitated meetings agencies and organizations as requested including ecology, local governments, utility providers, real estate representatives, workforce training providers including employment security, the community college, and others. The Grant County EDC also responded to an additional nineteen requests for information from companies that are considering constructing new facilities in Grant County. Information provided included; demographics, workforce characteristics, wage data, cost of living, utility

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rates, available properties, transportation and other infrastructure, largest employers, regulatory processes, incentives, and other information as requested. Workforce Development – The Grant County EDC facilitated the process of connecting the following companies with workforce training programs to aid in employee retention and skills. This also leads to higher earnings for those trained. The EDC continues to work closely with these companies and Big Bend Community College:

• REC Silicon • SGL Automotive Carbon Fibers • General Dynamics

Job Creating Infrastructure Development – The Grant County EDC assisted with the following infrastructure projects that enable continued economic growth and create or retain jobs:

• Port of Royal Slope Rail Project • Port of Moses Lake Rail Project • Port of Warden Rail Project • Port of Quincy Rail Project • City of Soap Lake Main Street Project • City of George Water Project for New Industrial Park • Port of Royal Slope Water Project for Existing Industrial Park

Small Business Development – The Grant County EDC assisted eighty-two startups with business planning support including financial planning, marketing planning, and export planning. The EDC also hosted two small business startup workshops.

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Greater Grays Harbor, Inc.

Summary of Best Practices Shared and Implementation

Grantee: Greater Grays Harbor, Inc. Grant Number: S14-75106-418 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

Climbing out of the recession has been a slow process for many of the rural counties in the state and Grays Harbor has been no exception. The situation has been a wait and see attitude as most sectors of the economy have suffered losses that will take some time to regain. The closing of a major mill and the waiting for a buyer has been indicative of the county trying to pull itself up but lacking the financial resources to do so.

Nonfarm employment has, as expected also seen better days. The nonfarm total has not been above 23,000 in Grays Harbor since December 2008. Currently the total has been hanging around the 21,000 area with service-providing employment now accounting for the vast majority of those jobs. With closures in the paper industries, the goods producing sector continue to take hits.

• The net change from the previous year's employment and economic information using data produced by the employment security department;

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 14.3% 14.2% 14.0% 12.7% 12.8% 12.4% 12.0% 12.0% 11.2% 11.0% 11.6% 12.6% 2013 13.7% 13.3% 12.8% 12.1% 12.0% 11.8% 11.0% 11.0% 10.6% 10.9% 11.0% 11.7% 2014 11.3% 11.9% 11.5% 9.7% 10.5%

Even though our unemployment rates have gone down from 2013 to 2014, we are still in the double-digits, and have consistently had the highest unemployment rates in the state.

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• Other relevant information on the community or regional area; Retention continues to be a large component of the economic mix for GH County. GH Community Hospital is in danger of closure or large scale job loss. This is due to the current situation of employers in GH County and the lack of jobs with private sector insurance. Currently 75% of all participates at GH Hospital are either Medicaid or Medicare clients. This currently pays 68% and 90% of cost for hospital operations. Only 20% of patients have private insurance and 5-7% is charity care. GGHI has worked for last two years on retention with senior hospital staff and the Department of Commerce. Currently a campaign is underway to create a Public Hospital District for higher reimbursement rates and public tax dollars to support the operation. GGHI is an active partner to ensuring that this key attribute for the local community and any future recruitment is retained. NOTE: As of the August 6th, 2014 election, The Public Hospital District #2 measure passed with a 61% yes vote, but there are still several things that need to be addressed. The danger of closure or large scale layoffs has been averted for now. GGHI is also currently implementing a new marketing and recruitment program geared toward building and maintaining the based opportunities for development in GH County. A county wide system geared at representing the industrial properties available with highest competitive advantages is under construction. This replaces the prior State of Washington "Washington Prospector site" which was cut for services offered in 2012. In addition, GGHI has contracted with a third party private company "Site Location Partnership" of Austin Texas to develop a new outreach marketing plan geared toward site consultants and private companies on regional, national, and international level. GGHI is also partnering in development of regional alignment for marketing and recruitment with 4 other regional county economic development organizations. We continue to respond to RFP’s as received. We are currently working on two relocation possibilities, one a lumber distribution Company, and a Storage Shed manufacturer; both are in the beginning stages of the vetting process, so nothing significant to report. We continue to partner with our local WorkSource, Community College, Port, PUD, SBA, and others to provide workshops and business forums to assist our local businesses. GGHI facilitated a meeting with Public officials from the local & State level, as well as Genesee & Wyoming Rail Road after there were 3 derailments in less than 2 weeks in our County. Concerns were raised about the reliability and safety of the rail. All issues were addressed to the satisfaction of all attending. We also organized a meeting with the railroad and our local Fire & Police departments. They will continue to meet on monthly basis. • The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $ 36,397.00 $36.397.00 $72,794.00

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• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $220,000 $220,000* $ 440,000 Local $96,400 $96,400* $192,800 State $154,200 $154,200 * $308,400 Federal $0 $0 * $0

Total Budget $470,600 $470,600* $941,200

*We do not do our 2015 budget until Nov. of 2014. So the figures in 2015 are estimated. We are hoping to stay the course. We may or may not see more monies in 2015. A lot of our funding is based on local government contracts and membership to our organization, and we cannot assume that we will get funding at the same level from year to year.

• The ADOs impact on employment through all funding sources.

The largest impact facing Grays Harbor is retention of 650 jobs currently underway at Grays Harbor Community Hospital. The narrative or the situation is included above. In addition, we are currently working on the recruitment of Halo Steel Pipe Manufacturing in McCleary WA. This is a 50 million 450 job project the Dept. of Commerce is involved with and has the ability to bring additional manufacturing jobs to high unemployment area. In addition, we are currently involved with the Port of Grays Harbor for the RFP for the New Wood Manufacturing plant in Satsop Business Park. On a different front, GGHI is developing a new world class Business center and visitor information center at the entrance of City of Aberdeen, This center will create a one stop resource center for entrepreneurial support and business support resource for the region. It will include SBDC, GH College, and the City of Aberdeen.

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Island County Economic Development Council

Summary of Best Practices Shared and Implementation

Grantee: Island County Economic Development Council Grant Number: S14-75106-420 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

**NAICS Industry Title May-14 Total Nonfarm 15,600 Total Private 10,980 Goods Producing 1,350 Natural resources and mining 760 Manufacturing 590 Service Providing 14,250 Trade, Transportation, and Utilities 2,440 Retail Trade 2,060 Information and Financial Activities 790 Professional and Business Services 1,230 Education and Health Services 2,310 Leisure and Hospitality 2,170 Government 4,620 Federal 1,390 State and Local Government 3,230 State and Local Government Education 1,460 Item Date - May 2014 Unemployment Rate 7.1% Initial Unemployment Claims 252 Continued Unemployment Claims 501

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• The net change from the previous year's employment and economic information using data produced by the employment security department;

NAICS Industry Title1 May 2013 to May 2014 Change Total Nonfarm 200 Total Private 130 Goods Producing 70 Natural resources and mining 130 Manufacturing -60 Service Providing 130 Trade, Transportation, and Utilities -20 Retail Trade -20 Information and Financial Activities -50 Professional and Business Services -80 Education and Health Services 170 Leisure and Hospitality 40 Government 70 Federal -10 State and Local Government 80 State and Local Government Education 90 Item2 Change – May 2013 to May 2014 Unemployment Rate -0.5% Initial Unemployment Claims +27 Continued Unemployment Claims -21

Industry and NAICS Number3

2013 Units

2013 Annual Taxable

Retail Sales 2012 Units

2012 Annual Taxable

Retail Sales Units

Change Sales Change Retail Trade 44-45 Motor Vehicles & Parts 441 158 $26,232,337 160 $27,490,538 -2 ($1,258,201) New & Used Auto Dealers 4411 30 $11,353,480 25 $11,168,349 5 $185,131 Rv, Boat, Motorcycle Dealers 4412 44 $2,086,510 53 $3,811,096 -9 ($1,724,586) Automotive Parts & Tire 4413 84 $12,792,347 82 $12,511,093 2 $281,254 Furniture & Home Furnishing 442 190 $14,988,071 181 $13,117,970 9 $1,870,101

1 Source: Washington State Employment Security Department 2 Source: Washington State Employment Security Department 3 Source: Washington State Dept of Revenue

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Industry and NAICS Number3

2013 Units

2013 Annual Taxable

Retail Sales 2012 Units

2012 Annual Taxable

Retail Sales Units

Change Sales Change Electronics & Appliances 443 264 $16,541,838 249 $15,255,417 15 $1,286,421 Building Materials, Garden Equip & Supplies 444 227 $60,422,477 228 $54,624,545 -1 $5,797,932 Building Materials 4441 168 $56,416,503 172 $50,884,553 -4 $5,531,950 Lawn & Garden Supplies & Equip 4442 59 $4,005,974 56 $3,739,992 3 $265,982 Food & Beverage Stores 445 124 $33,066,485 122 $31,401,290 2 $1,665,195 Grocery & Convenience Stores 4451 15 $29,341,385 14 $27,813,041 1 $1,528,344 Other Food & Beverage Stores 4452, 4453 109 $3,725,100 108 $3,588,249 1 $136,851 Drug/health Stores 446 195 $11,308,782 188 $10,085,919 7 $1,222,863 Gas Stations & Convenience Stores W/pumps 447 18 $15,819,098 18 $15,236,058 0 $583,040 Apparel & Accessories 448 265 $8,080,277 245 $7,682,301 20 $397,976 Clothing & Shoe Stores 4481, 4482 223 $6,407,184 202 $6,000,414 21 $406,770 Jewelry & Luggage Stores 4483 42 $1,673,093 43 $1,681,887 -1 ($8,794) Sporting Goods, Toys, Book & Music Stores 451 286 $5,988,846 280 $5,833,605 6 $155,241 Sporting Goods, Toys, Hobby/craft Stores 4511 201 $5,152,495 190 $4,977,918 11 $174,577 Book/periodical/music Store 4512 85 $836,351 90 $855,687 -5 ($19,336) General Merchandise Stores 452 35 $50,314,169 29 $49,646,708 6 $667,461 Department Stores 4521 5 $2,163,749 5 $2,158,940 0 $4,809 General Merchandise Stores 4529 30 $48,150,420 24 $47,487,768 6 $662,652 E-commerce & Mail Order 4541 501 $19,658,716 451 $15,902,101 50 $3,756,615 Miscellaneous Retailers 453, 4542, 4543 1,534 $46,082,501 1,602 $43,990,319 -68 $2,092,182

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Industry and NAICS Number3

2013 Units

2013 Annual Taxable

Retail Sales 2012 Units

2012 Annual Taxable

Retail Sales Units

Change Sales Change

Total: 3,797 $308,503,59

7 3,753 $290,266,77

1 44 $18,236,826 Agriculture, Forestry, Fishing 11 Total: 72 $1,161,642 81 $1,240,788 -9 ($79,146) Mining 21 Total: 8 $411,469 8 $1,072,473 0 ($661,004) Utilities 22 Total: 13 $2,028,110 18 $1,644,916 -5 $383,194 Construction 23 Construction Of Buildings 236 584 $76,014,518 574 $68,535,446 10 $7,479,072 Heavy Construction & Highways 237 80 $7,017,840 86 $7,871,037 -6 ($853,197) Special Trade Contractors 238 1,432 $53,278,722 1,439 $45,261,666 -7 $8,017,056

Total: 2,096 $136,311,08

0 2,099 $121,668,14

9 -3 $14,642,931 Manufacturing 31-33 Total: 868 $17,508,759 783 $14,230,846 85 $3,277,913 Wholesale Trade 42 Durable Goods 423 1,233 $22,475,783 1,193 $22,544,894 40 ($69,111) Nondurable Goods 424 594 $29,698,479 547 $29,261,253 47 $437,226 Electronic Markets, Agents & Brokers 425 14 $550,441 16 $277,087 -2 $273,354 Total: 1,841 $52,724,703 1,756 $52,083,234 85 $641,469 Transportation & Warehousing 48-49 Total: 46 $937,689 45 $1,415,777 1 ($478,088) Information 51 Total: 443 $46,937,146 417 $42,665,478 26 $4,271,668 Finance, Insurance 52 Total: 85 $4,290,049 79 $3,983,477 6 $306,572

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Industry and NAICS Number3

2013 Units

2013 Annual Taxable

Retail Sales 2012 Units

2012 Annual Taxable

Retail Sales Units

Change Sales Change Real Estate, Rental/leasing 53 Total: 277 $11,933,857 282 $11,686,942 -5 $246,915 Professional, Scientific & Technical Services 54 Total: 621 $12,566,611 604 $12,675,560 17 ($108,949) Management, Education & Health Services 55-62 Total: 894 $28,851,352 911 $26,170,751 -17 $2,680,601 Arts, Entertainment & Recreation 71 Total: 202 $12,191,752 193 $11,766,510 9 $425,242 0 $0 Accommodations & Food Services 72 0 $0 Accommodations 721 135 $16,755,632 134 $14,288,003 1 $2,467,629 Restaurants, Food Services & Drinking Places 722 197 $68,080,625 199 $66,444,293 -2 $1,636,332 Total: 332 $84,836,257 333 $80,732,296 -1 $4,103,961 Other Services 81 Repair & Maintenance 811 360 $16,032,520 355 $15,629,729 5 $402,791 Personal Service 812 136 $4,215,735 145 $4,631,197 -9 ($415,462) Religious, Civic & Other Organization 813, 814 51 $1,725,671 44 $1,805,588 7 ($79,917) Total: 547 $21,973,926 544 $22,066,514 3 ($92,588) Public Administration, Other 92,00 Total: 11 $645,782 10 $173,584 1 $472,198

Total Taxable Retail Sales4 2012 2013 Change Island County $695,544,066 $743,813,781 6.90%

4 Source: Washington State Department of Revenue

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Sales & Use Tax5

2013 May Basic

2013 May Optional

2012 May Basic

2012 May Optional

Change - Basic

Change - Optional

Island County $205,048.45 $203,382.13 $180,731.56 $180,438.53 $24,316.89 $22,943.60 Coupeville $14,565.19 $14,445.21 $15,583.30 $15,558.26 ($1,018.11) ($1,113.05) Langley $10,679.97 $10,591.10 $12,560.91 $12,540.87 ($1,880.94) ($1,949.77) Oak Harbor $118,201.59 $117,241.79 $114,222.20 $114,036.87 $3,979.39 $3,204.92 Total: $348,495.20 $345,660.23 $323,097.97 $322,574.53 $25,397.23 $23,085.70

• Other relevant information on the community or regional area; Government Employers:

NAS Whidbey 8,300 (Federal Government - Active Duty:5,900; Civilian and Contractor: 2,400)

Whidbey General Hospital 669 (Health Care) Oak Harbor School District 660 (Education)

Island County 491 (County Government)

Skagit Valley College 224 (Education - Whidbey Campus)

South Whidbey School District 200 (Education)

Navy Exchange 197 (Retail)

City of Oak Harbor 135 (City Government)

Island Transit 133 (Transportation – fare-free local transit system)

Coupeville School District 100 (Education)

Commissary 63 (Retail) Private Employers: 100+ employees

Boeing 1,175 (Aerospace Mfg)

Nichols Brothers Boat Builders 221 (Manufacturing – fluctuates due to contracts) Waste Management6 140 (Waste Services - Call Center) Safeway 150 (Retail) IDEX Health & Science 150 (Manufacturing) Whidbey Island Bank 116 (Financial Services)

Careage of Whidbey 131 (Healthcare)

New Leaf 102 (Contractor to NASWI)

Payless Food 109 (Retail)

Technical Services Inc 113 (Manufacturing)

Whidbey Telecom 110 (Telecommunications - provider for South Whidbey)

5 Source: Washington State Department of Revenue 6 Waste Management will close the call center in Sept 2014 in a back-office consolidation effort to Phoenix.

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Recruitment In January the EDC board removed recruitment as a primary goal. Doing so was based on the disproportionate challenges Island County faces in attempting to attract out of county or state businesses as compared to other locations. • Challenges

o Distance to interstate corridor o Distance to large regional airport o Limited infrastructure (sewer, water, roads, rail, seaport, etc.) o Political will (resident opposition to large businesses recruitment) o Limited zoning for larger businesses

Expansion What the board decided was emphasis on ‘growing our own’ could result in a higher success rate in developing the local economy. For that reason EDC staff now focuses efforts on growing local businesses. Local business support runs a broad spectrum. Whether it’s helping an electronics firm solve a microscopic level soldering problem by partnering them with WSU or helping a booming business strategic plan, the EDC uses its staff knowledge and network connections to solve business problems and help them grow. It’s the small, entrepreneurial businesses that can have the largest impact for a rural county. In the ‘80s an electronics person started a business in his garage that today employs over 100 people. Mukilteo Coffee started about a decade ago and now exports around the world. Small businesses can also run into expansion problems in a rural location and leave. In the ‘80s Whidbey Coffee started with a coffee cart at the county fair. Due to the transportation and workforce limitations of Island County, the business moved its headquarters off island. Such actions make Island County business development a challenge.

Demographics The higher number of older residents in Island County has a direct impact on the economy. Elderly people dampen retail activity due to their reduced need to replace clothing or other such times as compared to a young family. An older population also has a lower fertility rate which lends itself to creating a demographic which becomes progressively older over time. Chronic health problems also increase with an older demographic and can place a higher demand on healthcare services. Island County’s older than average population places unique challenges on economic development. The EDC is targeting the growth of living wage jobs within the county to help offset long term economic issues related to a disproportionately sized aging demographic. Focus is being placed on growing light manufacturing, information technology and professional service business. These businesses fit within the resource, infrastructure and workforce limitations of the county and conform to the retention of ‘rural character and charm’ as desired by the county’s residents.

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• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $60,270.00 $60,269.00 $120,539.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $22,750.00 $ $22,750.00 Local $138,000.00 $ $138,000.00 State $60,270.00 $ $60,270.00 Federal $0.00 $0.00

Total Budget $221,020.00 $ $221,020.00

Age 0 -4

Age 5 -14

Age 15- 19

Age 20- 24

Age 25- 34

Age 35- 44

Age 45- 54

Age 55- 64

Age 65- 74

Age 75- 84

Age 85+

US 6.5% 13.2% 6.9% 7.1% 13.4% 13.1% 14.3% 12.2% 7.2% 4.2% 1.8%Camano 3.6% 10.1% 6.0% 4.0% 7.0% 9.7% 16.6% 19.1% 14.7% 6.8% 2.2%Central Whidbey 3.8% 9.1% 5.0% 3.3% 8.4% 9.3% 13.3% 20.2% 16.7% 7.8% 3.2%North Whidbey 8.2% 12.7% 5.7% 10.4% 17.3% 11.6% 11.4% 10.2% 6.9% 3.9% 1.7%South Whidbey 3.2% 8.9% 5.4% 3.4% 6.6% 8.3% 15.3% 23.5% 15.4% 6.7% 3.4%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Age Groups

US Camano Central Whidbey North Whidbey South Whidbey

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• The ADOs impact on employment through all funding sources.

NAS Whidbey Island Naval Air Station (NAS) Whidbey Island, with over 10,000 military, civilian and contract employees, continues as the dominant employer in Island County and northwest Washington. In 2010 the EDC learned of a move by the Navy to not locate the P-8 Orion mission at NAS Whidbey but instead place all squadrons at NAS Jacksonville and Marine Corps Base Kaneohe. The EDC took action by completing a thorough cost and airfield encroachment study of Jacksonville and Kaneohe. NAS Whidbey forwarded the final report to Navy leadership. Scott Smith, program manager at NAS Whidbey, stated that the report was key in the Navy’s decision to site 6 P-8 squadrons on Whidbey. Because of the decision Island County will not suffer a loss of 1,700 military positions, the base will spend $111 million in construction and the area will see $171 million in value added economic activity7. The Navy’s Record of Decision was announced in June8. Success in recruiting the P-8 mission was based on the knowledge that active duty military and Dept of Defense civilians cannot ‘lobby’. Third party, independent agencies like EDCs can. However, return on investment to the Dept of Defense in missions and cost savings must be clearly demonstrated.

Fairgrounds Strategic Plan The EDC entered into a contract with the Board of Island County Commissioners to develop a strategic plan for the Island County fairgrounds property. For several decades the Island County Fair Association has managed the property and, due to the cost of building upkeep, can no longer do so. Landerman-Moore Associates, an Anacortes firm specializing in fairground property planning, was hired by the EDC to create a 10-year plan for a cost of $65,000. Final determination by the planner was to focus on producing events the entire year, not just at fair time. Cash flow projections provided in the plan shows a viable business model but residents had grave concerns about the plan. Currently the plan resides with the county for further action.

7 Source: Final Supplemental Environmental Impact Statement for the Introduction of the P-8A Multi-Mission Maritime Aircraft into the U.S. Navy Fleet, April 2014 8 Federal Register /Vol. 79, No. 112 /Wednesday, June 11, 2014

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Economic Development Council of Jefferson County

Summary of Best Practices Shared and Implementation

Grantee: Economic Development Council of Jefferson County Grant Number: S14-75106-421 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

• The net change from the previous year's employment and economic information using data produced by the employment security department;

5/2013 8.9% 5/2014 8.0%

• Other relevant information on the community or regional area; Fort Worden, part of the State Park system for many decades, was leased to the Fort Worden PDA, an independent entity connected with the City of Port Townsend. This effort to enhance the viability of this valuable historical site for use as a center for Lifelong Learning, is a truly important State and local government partnership. • The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $41,090.00 $41,090.00 $82,180.00

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• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $12500 $12500 $25000 Local 50000 25000 75000 State 41090 41090 82180 Federal 0 0 0

Total Budget $103590 $91090 $194860

• The ADOs impact on employment through all funding sources. We have been directly responsible for the retention of a company with 18 employees in Jefferson County. Through our business planning classes, which are held twice each year, 6 businesses have either started a new business or implemented their plan to grow their business. At a minimum, this has resulted in 8 additional jobs. Annual reports may include the impact of the ADO on:

• Wages

• exports,

• tax revenue, As a result of our proactive creation of a community corporation to fund and open a general merchandise store in downtown Port Townsend, an estimated $200,000 in additional sales tax revenues have flowed into government coffers.

• small business creation, o 6 businesses have either started or entered an expansion effort through our

direct involvement with them. • foreign direct investment, • • business relocations,

o we have been working with a small boat manufacturer in CA interested in moving to Jefferson County. They should make a decision about where in Washington to move by the end of this year. 8 direct jobs. 2-4 indirect.

• expansions,

• terminations, and

• capital investment

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Economic Development Council of Seattle & King County

Summary of Best Practices Shared and Implementation

Grantee: Economic Development Council of Seattle and King County (EDC) Grant Number: S14-75106-416 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

Note: Changes in unemployment rates require broad shifts in hiring and job creation/ elimination. ADOs focus on key strategic private investments that result in high wage job creation in sectors with strong multipliers. This does not always result in great movements in unemployment numbers, which include all wage levels, not just high wage jobs. May 2014 employment: 1,276,000 May 2014 unemployment: 54,450, 4.7% Net gain: 41,700 jobs By sector: Construction: 62,100 Net Change from 2013: 7,300 Manufacturing: 108,800 3,400 Trade, Transport: 232,700 10,300 Information: 84,800 3,000 Financial: 72,200 1,400 Prof. Services: 206,900 7,100 Education/Health: 167,000 3,900 Leisure/Hospitality: 125,500 4,000 Other Services: 45,000 100 Government: 171,000 1,200 Total: 1,276,000 41,700

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• The net change from the previous year's employment and economic information using data produced by the employment security department;

May 2013 employment: 1,234,300 May 2013 unemployment: 56,300, 4.9% By sector: Construction: 54,800 Manufacturing: 105,400

Trade, Transport: 222,400 Information: 81,800 Financial: 70,800 Prof. Services: 199,800 Education/Health: 163,100 Leisure/Hospitality: 121,500 Other Services: 44,900 Government: 169,800 Total: 1,234,300

All information from WA Department of Employment Security • Other relevant information on the community or regional area; The EDC of Seattle and King County targets the following industry sectors: • Aerospace • Life Sciences & Health Care • Information Technology • Clean Technology

• Maritime • Financial & Business Services • Global Trade & Investment • Fashion & Apparel

In addition to our day-to-day, one-on-one business assistance programs, we are actively working to improve and advance our targeted industry sectors. Specifically, from July 1, 2013 to June 30, 2014, we: • Helped establish and serve as the administrative agent and convener for the King County

Aerospace Alliance, which held meetings at multiple aerospace companies in King County;

• Recruited companies and investment at multiple trade shows, including, among others, the Pacific Northwest Aerospace Alliance, the Aerospace & Defense Supplier Summit, and led a delegation to GLOBE 2014, the clean technology conference in Vancouver, BC.

• Co-founded and serve on the Board of the Washington Clean Technology Alliance; • Served on the Board of the Washington Biotechnology & Biomedical Association; • Administered the Innovation Partnership Zone (IPZ) for Financial Services in King

County; • Co-administered with the City of Redmond the IPZ for Interactive Media; • Served on the Steering Committee for the Medical Device IPZ in Bothell; • Operated two incubators for computer game developers, in Seattle and Redmond; • Prepared and promoted an economic impact study of the Maritime Sector in Washington; • Prepared and promoted an economic impact study of the Interactive Media industry in

Washington;

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• Served on the advisory boards of several community colleges on workforce and curriculum development;

• Co-managed with the Trade Development Alliance the Greater Seattle Metropolitan Area Global Trade and Investment Plan Pilot Project, an initiative of the Brookings Institution/JP Morgan Chase Global Cities Initiative focused on Foreign Direct Investment.

• Presented an annual Economic Forecast Conference, looking at national and regional prospects and focusing each year on a specific sector which was attended by over 700 people; and

• Hosted sector-specific events on topics of interest to our constituents. • The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $220,134.00 $220,133.00 $440,267.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $257,500 $ $ Local 488,616 State Federal

Total Budget $1,045,700 $ $

• The ADO’s impact on employment through all funding sources. From July 1 ,2013 to June 30, 2014, in addition to ongoing client work rolling over from prior years, the EDC provided retention and expansion assistance to 60 companies within King County, and recruited 49 companies to King County. Examples of major impacts included: Booking.com Recruitment: The EDC led recruitment efforts for the establishment of Booking.com’s third customer service center in the US in King County. The EDC provided customized research on King County covering a variety of subjects from economic statistics to language and demographic data. Additionally, the EDC provided several community briefings to the Booking.com site location team. Booking.com is part of Priceline (NASDAQ: PCLN) and is the world’s leader in online accommodation bookings. Based in the Netherlands, the company has more than 100 offices in over 50 countries. In 2012, the company opened an office in Seattle that moved to downtown Bellevue in 2013. Plans

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announced in July 2013 for the new customer service center include up to 350 new jobs for the region. Aerospace Sector: The EDC of Seattle and King County partnered with many other organizations with the aim of keeping Boeing jobs in the region, and in turn, growing the aerospace sector and related supply chains. Boeing’s decision to build the 777X in Washington was a double win: in addition to the estimated 8,000 jobs across the Puget Sound region, and multi-billion dollar investment, we are now able to recruit other aerospace companies as suppliers, and we have several related recruitment projects underway. There are currently more than 65,000 aerospace jobs in King County, in 478 establishments. Interactive Media: Through our game development incubators, we have nine start-up companies to become commercially viable, with an estimated impact of 50 jobs. One of these companies was recently acquired by a major game developer in a multi-million dollar deal. The EDC works directly with businesses, consultants, site selectors and other decision makers to provide insight and information on demographics, tax structure and incentives, education and training, connections with the labor market and hiring, utilities, transportation, identifying and touring facilities, cost of living, housing, cultural and recreational amenities, and contact with local authorities. Factors influencing site decisions vary broadly – even within industries – and EDC’s assistance is customized and tailored to the specific client’s needs and interests. The EDC teams with property developers and real estate brokers, other business and industry leaders, the Port of Seattle, Puget Sound Energy, workforce development, education and training institutions, labor union leaders, elected officials and staff from King County and its cities, Washington State Department of Commerce and others on recruitment efforts. Our partners’ responsiveness and proven ability to deliver are critical components of successful recruitment.

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Kitsap Economic Development Alliance

Summary of Best Practices Shared and Implementation

Grantee: Kitsap Economic Development Alliance Grant Number: S14-75106-422 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

Unemployment Rates

2014 Jan Feb March April May Kitsap 6.2% 7.0% 6.6% 5.4% 6.1%

Nonfarm Industry Employment (not seasonally adjusted)

2014 Jan Feb March April May Kitsap 82,900 82,900 83,100 83,500 83,700

• The net change from the previous year's employment and economic information

using data produced by the employment security department;

Kitsap County (Bremerton-Silverdale MSA) Change Labor force classification (place of residence)

Preliminary May-14

Revised Apr-14

Revised May-13

Apr-14 May-14

May-13 May-14

May-13 May-14

% Civilian Labor Force 115,550 114,810 116,380 740 -830 -0.7% Employment 108,460 108,600 108,240 -140 220 0.2% Unemployment 7,090 6,210 8,140 880 -1,050 -12.9% Unemployment Rate % 6.1% 5.4% 6.9% 0.5% -0.8% -11.6%

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• Other relevant information on the community or regional area; Kitsap named one of the counties in the Puget Sound Aerospace Manufacturing

Community designation from EDA Harrison Hospital affiliates with Franciscan Health System in 2013. In May, they

announced a planned move of all major hospital functions to a new hospital in Silverdale adjacent to the existing Harrison Hospital facilities. The Bremerton location’s future is to be determined, but will likely include keeping an ER and urgent care center open. Harrison is a KEDA client. http://www.bizjournals.com/seattle/blog/health-care-inc/2014/05/harrison-medical-center-may-move-hospital-care-to.html

Olympic College has submitted a proposal to continue providing instruction for the Puget Sound Naval Shipyard’s apprenticeship program. This is a substantial program of OC; outcome will be determined later in 2014. KEDA maintains a close working relationship with OC – providing research as they explore new BAS degrees, partner with them on workforce development and sit on the president’s advisory council.

The Trails at Silverdale, a 17.6 acre retail development in Silverdale began construction in May 2014. http://www.centralkitsapreporter.com/news/258363301.html

Port Madison Enterprises (PME), Suquamish Tribe, is near completion of Phase 1 of a four phase expansion of Clearwater Resort. http://www.northkitsapherald.com/news/209742601.html PME is a KEDA and PTAC client, receiving ongoing assistance regarding expansion, construction RFPs and training.

NASSCO Earl Industries (a subsidiary of General Dynamics) was recently awarded the ship repair contract at Puget Sound Naval Shipyard. NASSCO has pledged to work with KEDA to utilize local/regional subcontractors and become involved in the community.

• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $99,124.00 $99,124.00 $198,248.00

• The amount of funds received by the ADO through all sources; Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

Actual Figures FY 14

Budgeted FY 15 Total

Private $180,068 $173,000 $353,068 Local 227,995 194,000 228,189 State

Federal 27,511 25,000 52,511 Total Budget (Includes Commerce Funds Above) $534,698 $491,124 $1,025,822

Note: FY14 includes restricted funds for special projects that are not included FY15 numbers.

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• The ADOs impact on employment through all funding sources. PTAC (Procurement Technical Assistance Center) sub center provides counseling

and guidance for companies interested in government contracting. Since 2007, over $179M in contract awards have been made to Kitsap companies who have received PTAC assistance from KEDA

ATS (a tech firm) with offices in Silverdale and DC area has 300 employees split between two locations; 90% of their government work is done here. This is a PTAC/BRE client receiving ongoing assistance from KEDA

Recruitment of Omohundro from California resulted in 24 initial jobs, investment of $3.6M and additional 25 jobs for expansion

Starwood Retail purchased Kitsap Mall (Silverdale) for $111M; paid $6.5M for additional retail properties in Silverdale based on demographic and real life info provided to investors; Mall plans expansion and improvement projects in 2014/2015

First Federal Savings and Loan expanded to Silverdale (opened in May 2014); KEDA provided demographics in their review process (improvements: $377,375)

TMF, a machining firm, acquired AS9100 certification and is expanding from defense to aerospace

Trulife’s parent company (based in Ireland) purchased a machine shop in Bellingham based on recommendations to diversify manufacturing infrastructure to aerospace. The Poulsbo location will perform some of the work for the Bellingham location. (NOTE: The newly formed venture from Trulife and the machine ship, Sequoia, will be part of the WA contingent at Farnborough).

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Kittitas County Chamber of Commerce

Summary of Best Practices Shared and Implementation

Grantee: Kittitas County Chamber of Commerce Grant Number: S14-75106-423 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

NOTE: CHANGES IN UNEMPLOYMENT RATES REQUIRE BROAD SHIFTS IN HIRING AND JOB CREATION/ELIMINATION. ADO’s FOCUS ON KEY STRATEGIC PRIVATE INVESTMENTS THAT RESULT IN HIGH WAGE JOB CREATION IN SECTORS WITH STRONG MULTIPLIERS. THIS DOES NOT ALWAYS RESULT IN GREAT MOVEMENTS IN UNEMPLOYMENT NUMBERS – WHICH INCLUDE ALL WAGE LEVELS – NOT JUST HIGH WAGE JOBS.

• Current employment and economic information for the community or regional area produced by the employment security department;

Kittitas County Unemployment Rate: April 2014: 6.2% Source: Washington State Employment Security Department

• The net change from the previous year's employment and economic information using

data produced by the employment security department;

Kittitas County Unemployment Rate: April 2013: 7.0% April 2014: 6.2% Net Change April 2013-April 2014: -.8% Source: Washington State Employment Security Department

• Other relevant information on the community or regional area;

Our economic development strategy is focused on the following: 1. Prioritized expansion and recruitment sectors:

Manufacturing/Light Industry Resource Energy Recreation and Outdoor related Industries (Retail, Repair, Tourism)

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2. Retain and expand existing businesses 3. Establish an Upper County Economic Development Strategy – Cle Elum Area

• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $43,325.00 $43,324.00 $86,649.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $67,446 $ $ Local 76,525 State Federal

Total Budget $143,971 $ $

• The ADOs impact on employment through all funding sources.

Geddis Building – Partnership with the City of Ellensburg and the Ellensburg Business Development Authority has led to the revitalization of an historic downtown building that had been nearly vacant for the last eight years. Six residential units, all leased, and eight commercial spaces. Five commercial spaces are leased including two startups, two relocations, and an expansion. One of the relocations allowed an existing business to expand into their old vacated space of a different downtown building. Incubator – One tenant transitioned out of the facility, successfully moved to space downtown, and expanded over the last twelve months. Their transition out allowed another Incubator tenant to expand within the Incubator and two startup companies have moved into the remaining vacant space. The end result is increased manufacturing activity with a variety of products being delivered throughout the Northwest and West coast. Resource Energy – We secured a Department of Commerce grant to conduct a woody bio-mass study for the feasibility of delivering enough supply to fuel a 5-8 MW power and steam co-gen facility within Kittitas County. If study results are positive it could revive the forestry industry in Kittitas County, address forest health and wild fire issues. Tourism – Implemented a county wide tourism program in partnership with the City of Cle Elum, City of Ellensburg, and Kittitas County along with several non-profit event managing organizations. This partnership has increased overnight stays, increased

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attendance at events, and supports the business community throughout Kittitas County. Contributed to business retention, expansion, and created new or retained jobs county wide. Water Park/Conference Center – This project was put on hold in 2008-09 with the collapse of the economy. We continue to provide regulatory and legislative support and recent activity indicates ground breaking later this summer. 7-10 businesses are anticipated to locate in the complex.

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Klickitat County Public Economic Development Authority

Summary of Best Practices Shared and Implementation

Grantee: Klickitat County Public Economic Development Authority Grant Number: S14-75106-424 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

According to ESD, May 2014 employment in Klickitat County totaled 8,970 of a 9,710 labor force, leaving 740 people (7.6%) unemployed. Klickitat County’s “niche” in the aerospace industry which helped bolster the county through the great recession has experienced recent chinks in its armor as a direct reflection of national defense spending reductions. • The net change from the previous year's employment and economic information using

data produced by the employment security department;

According to ESD, 200 fewer people were unemployed in May of 2014 than in May of 2013; however, 190 fewer were working in May of 2014 than in May of 2013 due to shrinkage in the local labor force from 10,100 in 2013 to 9,710 in 2014 and a resulting drop in unemployment rates from 9.3% in May of 2013 to 7.6% in May of 2014. While the decrease in unemployment rates is encouraging, the continuous loss in total labor pool is of concern locally and regionally. Shrinkage in labor force often translates into diminished buying power or, put differently, fewer dollars being spent and, consequently, fewer tax revenues to support public functions. • Other relevant information on the community or regional area; Klickitat County is home to the former Insitu, now Boeing-Insitu, a leading Unmanned Aerospace Systems (UAS) firm in Bingen. The firm presence has, almost singlehandedly, resulted in Klickitat County’s having the highest average wages in the 5-county Mid-Columbia River Gorge area. In June of this year Boeing-Insitu celebrated occupancy of its new 128,000 square foot facility at Port of Klickitat in Bingen. Klickitat County, Port of Klickitat, and Klickitat County Public Economic Development Authority played key roles in forst making leased space available to Insitu; then by responding aggressively to Insitu’s FRI seeking a permanent location; and, most recently by providing infrastructure improvements at their selected Bingen Point location.

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Interesting to note that while many signs are pointed upward in Klickitat County, fact remains Klickitat County has a higher percentage of people living in poverty than any other county in the region. • The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $ 36,397.00 $36.397.00 $72,794.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $ $ $ Local $14,181.00 14,181.00 State Federal

Total Budget $14,181.00$ $ $14,181.00

• The ADOs impact on employment through all funding sources.

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Lewis County Economic Development Council

Summary of Best Practices Shared and Implementation

Grantee: Lewis County Economic Development Council Grant Number: S14-75106-425 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

Lewis County Unemployment rate as of May 2014: 9.5%

• The net change from the previous year's employment and economic information using

data produced by the employment security department;

Lewis County Unemployment rate: May 2013: 11.1% May 2014: 9.5% Net change = 1.6%

• Other relevant information on the community or regional area;

Industry Clusters Lewis County, in collaboration with Thurston, Mason, Grays Harbor, and Pacific Counties, have identified 5 regional clusters that affect us all. Those are:

• Food Manufacturing • Wood Products • Glass, Plastics and Chemicals • Internet and Computer Technology • Health Sciences

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The five county region (nicknamed the Pac5) works cooperatively on two fronts: All 5 EDC’s sit on the Pacific Mountain Workforce Development Council’s Board of Directors (the WDC is using the clusters to focus their work, also), and second the Pac5 produce the Innovation Expo Conference each year in December. 2014 will be our 5th year. This event has grown to host over 350 participants in a daylong expo and education/workshops event. The Lewis EDC attends to the clusters as long-term strategies for education and training, site expansions, and supply-chain recruitment or expansions. This activity does not restrain us from the day-to-day opportunities of retention, expansion and recruitment. The EDC board is working to add new board members (as terms are up) that represent both the individual clusters and the local supply chains for each cluster. Health Sciences: Providence Hospital in Centralia is Lewis County’s largest private sector employer with an average of 880 employees. Providence has been represented on the EDC board by their Chief Operations Officer. Our focus on serving the hospital staff and visitors has been in support of the Centralia Station project. This project is being developed by the Port of Centralia and will add approximately 50 acres of retail and office space within a short distance to the hospital. Currently, there are no services within walking distance (or a short drive) to the hospital and surrounding clinics. The Centralia Station project will create that service center. Land development is proceeding with building projected to begin later this year. Forest Products: This is Lewis County’s largest (by dollar volume) industry. In cooperation with several EDC board members and the PacMtn Workforce Development Council, work has begun to develop safety training curriculum for logging employees. This is critically important for two reasons: First, younger loggers are beginning to experience injuries, sometime fatal; second, the state department of Labor and Industries costs for logging employees is at nearly $20 per hour to the employer, before the employee gets paid. We will continue to push this issue to keep our loggers safe and to bring down L&I rates. International timber and lumber sales have been robust the first half of 2014. Domestic lumber sales are still sluggish, but are anticipated to speed up sales as building inventories shrink. Skills training is occurring at the Hampton Lumber mill in Randle. Over 40 employees will upgrade their skills on-site. The state Board for Community and Technical Colleges is funding this effort through Centralia College. The result of this training will allow the company to create less skilled openings as starter jobs and focus on training new hires. Other mills are interested in training new front line supervisors as they are promoted. A committee of the PacMtn WDC (co-chaired by Michael Cade, Thurston EDC and Dick Larman, Lewis EDC) are surveying companies in the PacMtn 5 county region to determine if front-line supervisory training is needed across the five clusters. Food Manufacturing: Participated, for the second year, on steering committee to produce the second “Grains Conference”. This conference is focused upon returning boutique grain production to western Washington. WSU is the lead agency in this effort. Attendees were from western British Columbia, Washington, Oregon. And, were primarily farmers, brewers, and distillers. Lewis County historically has

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produced high quality grains and hops. We endeavor to recreate success in those crops and uses. National Frozen Foods (primarily frozen vegetables) has been in production for 102 years and is poised for more expansion. EDC attended the annual Food Manufacturing show in Portland, Oregon to generate new working relationships in the food business. Glass, Plastics and Chemicals: These industries, in Lewis County, have traditionally been driven by the national housing market (window and door glass, plastic sewer and water pipe). The glass industry modified its focus to include back-panels for the solar energy company and actually added over 70 employees during the housing downturn. Internet and Computer Technology: Our primary focus this year has been on the incredible strides take by a local telco. ToledoTel (a small telco in Toledo, Washington – part of Lewis County) has delivered to every business and home in Toledo the option of up to 1 gigabyte of upload and download internet capacity. According to experts this is the fastest available speed in rural Washington, and perhaps most urban areas. We have been targeting companies requiring high-speed internet service. Currently, we are working with two interested companies. Hopefully decisions will be forthcoming this calendar year. Lewis EDC waves the “readiness” banner. In all these clusters, and in other recruitment, expansion projects the communities must be able to accept new development. The land must be ready (fully serviced) or have the ability to be serviced in a timely fashion. And, the people must be ready to work (education and workforce development). These are our two consistent conversations with local governments, local educators, and local developers. We have found it difficult for trust in future development to cause local public investments in any robust way this year. Uncertainty has frozen many decisions to move forward.

• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $59,449.00 $59,448.00 $118,897.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $40,000 $40,000est $80,000 Local $282,000 $137,000est $419,000 State $96,000 $96,000 $192,000 Federal

Total Budget $418,000 $273,000 $691,000

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• The ADOs impact on employment through all funding sources. Lewis EDC is a contractor with WSU to provide an Energy Efficiency program for industrial and commercial buildings. Sara Bowles, energy program coordinator has visited over 100 companies throughout Lewis County to determine energy conservation needs and educate the businesses about “buy-down” programs to help defray the cost of new, more energy efficient lighting and equipment. Sara also makes referrals to the EDC for BRE program needs. Lewis EDC also contracts with Impact Washington to market their products and services to the manufacturing community. This year we have had two completed projects with manufacturing companies. One aerospace and one wood products. Lewis EDC contracts with Site Location Partnership to work 6 national and international trade shows that relate to our clusters. We average 15 to 20 leads per show. EDC (Matt Matayoshi, Marketing Director) follows up on those leads. Matt also makes direct contact with site selectors, property developers, real estate brokers to ensure Lewis County is noticed as a potential site. We have also been involved in ensuring the Industrial Park at TransAlta has proper marketing materials, including a web-site, and background information to help market large lot (100+ acres) industrial sites. Initially, there is 1,000 acres available. Lewis EDC sits on two advisory boards for Centralia College, Lewis County Thrives (a county-wide youth programs group), the Pacific Mountain Workforce Development Council, and until April 2014 served for over ten years on the Impact Washington Board.

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Lincoln County Economic Development Council

Summary of Best Practices Shared and Implementation

Grantee: Lincoln County Economic Development Council Grant Number: S14-75106-426 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

Background: Lincoln County is 2,317 square miles and 73% of the land is in agricultural production. The population (2010 US Census) is 10,570, 4.6 persons per square mile. In comparison, Washington as a whole has 101.2 persons per square mile.

According to ESD, the number of business establishments for all industries has remained fairly steady since 2004, averaging 567 over the period of 2002 to 2012 (most recent available.) The most establishments, 609, were seen in 2002 and the least, 544, in 2008.

The number of nonfarm employees for all industries over the same eleven-year period averaged 2,936 with a high of 3005 seen in 2004 and a low of 2,876 seen in 2009. Since 2012, ESD reports that Lincoln County nonfarm employment averaged 2,630 in the first half of 2013 compared to 2,700 for the same period in 2012. In 2013 nonfarm employment realized some gains in construction and manufacturing, but most of the increase was offset by decreases in Government.

According to ESD, the number of Unemployment Insurance (UI) claims for all industries in Lincoln County from 2003 to 2013 averaged 580 per year with the highest number of claims being in 2009 (784) and 2010 (741.) Claims have steadily declined since: 2011 saw 587; 2012 saw 527; and 2013 saw 451. For the first half of 2014, UI claims are the lowest seen for that timeframe since 2007.

• The net change from the previous year's employment and economic information using

data produced by the employment security department; May 2013 – Lincoln County’s unemployment rate was 7.2%. May 2014 – Lincoln County’s unemployment rate was 6.1%, reflecting a 1.1% reduction.

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• Other relevant information on the community or regional area; Lincoln County is an agricultural county and is regularly the second largest wheat producing county in the nation. Some of our farm jobs are not included in the US census process, the basis for much of ESD’s data. The USDA 2012 Census of Agriculture (most recent) indicates that agricultural production was valued at $183 million, up from $126.2 million reported in the USDA 2007 Census of Agriculture. According to the 2012 census this production came from 897 farms, up 12% since the 2007 agricultural census. (The Ag census is taken every 5 years.)

Livestock is also strong. The 2012 census valued livestock and livestock products at $9.6 million, an 8.8% increase over the 2007 totals. Lincoln County is home to Stockland Livestock Auction, one of only two auction yards in eastern Washington, and is home to the region’s only USDA-Inspected livestock processing plant. This CERB-funded project not only created jobs (reported in 2013,) it allows livestock producers within a 200-mile-radius to get more value from their herds by enabling them to sell their product directly to restaurants, stores and institutions.

In addition to agriculture, tourism is an economic strength for Lincoln County. The EDC contracts with Lincoln County to act as the Visitor & Convention Bureau. As the Bureau, the EDC provides the administrative services and the County provides lodging tax funds to advertise our recreational opportunities which, in turn, benefits the local businesses that support those activities. Our entire northern boundary is comprised of Lake Roosevelt National Recreation Area and we promote the lake’s houseboat vacation rentals, boating, camping and fishing. We also promote the fishing, hunting, hiking, biking and ORV opportunities available on over 100,000 acres of public land located within our boundaries. The Visitor & Convention Bureau partnership is in its fourth year and we have seen lodging tax totals increase since its inception.

The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $33,505.00 $33,504.00 $67,009.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $5,750.00 $6,100.00 $11,850.00 Local* $58,958.20 $60,182.00 $119,140.20 State Federal

Sub Total $64,708.20 $66,282.00 $130,990.20 Total Budget $98,213.20 $99,786.00 $197,999.20

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*Local funds include $48,576.20 in support from Lincoln County without which we would have one part time employee instead of 1.5 fulltime employees we have now.

• The ADOs impact on employment through all funding sources. The EDC is the single resource for business assistance located within the County. We administer the County’s economic development strategy and we do so by partnering with other entities (the Spokane SBDC office, WSU Extension, USDA-RD are examples.) We provide direct business assistance as well as workshops and networking opportunities. FY 14 Project Report: The EDC has been assisting intelliPaper, a 5-year-old technology company that manufactures recyclable, paper-based USB flash drives, since 2012. Owners have invested $2 million in the company and, at the end of FY 14, intelliPaper received a $750,000 Craft3 loan to increase production. I reported 13 employees in our project report for FY 14. Since then the company has added a second shift. Even though the company is expanding, this was listed as a retention project. While the President and product developer lives in Lincoln County, there are other owners who live out of state (California, Missouri and Alaska) and they would like to see the company moved to their home states. The EDC will continue to work with intelliPaper, making every effort to see the growing company remain in Washington.

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Economic Development County of Mason County

Summary of Best Practices Shared and Implementation

Grantee: Economic Development Council of Mason County Grant Number: S14-75106-428 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

NOTE: CHANGES IN UNEMPLOYMENT RATES REQUIRE BROAD SHIFTS IN HIRING AND JOB CREATION/ELIMINATION. ADOS FOCUS ON KEY STRATEGIC PRIVATE INVESTMENTS THAT RESULT IN HIGH WAGE JOB CREATION IN SECTORS WITH STRONG MULTIPLIERS. THIS DOES NOT ALWAYS RESULT IN GREAT MOVEMENTS IN UNEMPLOYMENT NUMBERS – WHICH INCLUDE ALL WAGE LEVELS – NOT JUST HIGH WAGE JOBS.

• Current employment and economic information for the community or regional area produced by the employment security department;

Mason County Unemployment Rate: May 2014: 8.4% Source: Washington State Employment Security Department

• The net change from the previous year's employment and economic information using data produced by the employment security department;

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2012 11.8% 12.0% 11.5% 10.4% 10.5% 10.4% 10.3% 10.3% 9.7% 9.0% 9.3% 10.3% 2013 11.3% 11.2% 10.6% 9.8% 9.9% 10.0% 9.3% 9.2% 9.0% 8.7% 8.5% 9.4% 2014 9.2% 9.9% 9.2% 7.6% 8.4% Source: Washington State Employment Security Department, Labor Market and Performance Analysis

Mason County Unemployment Rate: May 2013: 9.9% May 2014: 8.4% Net Change: -1.5% Source: Washington State Employment Security Department Fiscal Year 2013 in review:

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Fiscal Year 2013 in review: The EDC of Mason County has two full time employees and we were without an executive director for about half of the year. Despite the lack of paid staff during this time, the EDC was able to achieve many goals by utilizing Board Members. Workforce: • After not having a fulltime director at the Shelton campus for some time, Olympic College

needed to become reacquainted with the community. The EDC played a key role in reintroducing the College to the community by facilitating forums and events.

• The executive director of the EDC joined the Pacific Mountain Workforce Development Board. Along with serving on the Board of Director’s, we assisted in a research project to identify middle- and high-wage occupations projected to have at least twenty annual openings in the five-county region between 2013 and 2018 . The ultimate goal was to determine whether the region would be able to produce job-ready employees to meet that industry demand and, if not, to identify additional training services or approaches to address shortcomings and, thereby, stabilize the workforce side of a broader industry retention and expansion effort.

Entrepreneurial Development:

• The EDC partnered with the high school to hold a youth business plan competition. Sixteen students participated in the competition which entailed writing a business plan and then making a presentation to a panel of five community leaders.

• The EDC partnered with both Chambers of Commerce, two ports, Washington State University and Olympic College to develop and hold a community forum entitled “Getting to Yes: Enhancing our Entrepreneurial Environment”. The forum was well attended by community leaders and a SWOT analysis was conducted.

Business Assistance: • The EDC has been working to retain three manufacturing businesses, assisting two

businesses with expansion plans and worked with one new business that will be operational at the end of the summer.

• The EDC worked with a fabricator to assist in getting additional work. They are delving into the boat building industry and we are hopeful that we will see their opportunities for this new market grow.

• The EDC assisted a local hatchery project in selling their business to Pacific Shellfish. The new owners intend to rear steelhead to fingerling size and then transfer them to their fish rearing site in Omak on the Columbia River. They are very interested in continuing to grow the fin fish side of their operation.

• SCORE is a nonprofit association dedicated to helping small businesses get off the ground, grow and achieve their goals through education and mentorship. The EDC recruited a volunteer and put him through the training to become a certified SCORE Counselor.

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Infrastructure: • The EDC has been working with Port of Shelton to fill their industrial buildings. They

are at 100% capacity for the first time in several years.

• The EDC has assisted the Mason Transit Authority in developing plans to build a community center.

• The EDC has worked with local legislators and public entities to find ways to fund the Belfair sewer project.

• The EDC has worked with Public Utility District 3 to help keep utility rates considerably lower than surrounding counties. Mason PUD 3 has been designated as a diamond level utility in this year’s Reliable Public Power Provider (RP3) program from the American Public Power Association (APPA). The designation recognizes PUD 3 for providing its customers with the highest degree of reliable and safe electric service. PUD 3 is one of 94 of the nation’s more than 2,000 public power utilities to earn the RP3 recognition and one of 29 to reach the diamond level.

• The EDC has been working on an expansion to bring more industrial land into the UGA. The City of Shelton, Mason County, and property owners have signed an MOU that clearly defines roles and responsibilities of each party.

• The EDC continues to work on connecting the Belfair Sewer Facility with the South Kitsap Industrial Area (SKIA) project in Kitsap County. This includes the Port of Bremerton, City of Bremerton, Mason County, and Congressman Kilmer’s office.

Partnerships:

• The EDC facilitates a monthly lunch of administrators. These meetings are by invitation only and do not include elected officials. The administrators of the city, county, public works, utility districts, ports, tribes and others are invited to an informal lunch gathering. Partnerships have been formed and in a casual setting we have been able to save time and money by exploring ways to work together. For example, the city was working on extending a water line out to the Washington State Patrol and the Port had a water tower they weren’t using that was closer to the site. They were able to come to an agreement and a considerable amount of money and time was saved.

• Kitsap Regional Coordinating Council – entities from Kitsap and Mason County have formed a partnership to support a regional transportation priority list.

• Five ADOs have formed a regional partnership that we call the Pac 5. We meet regularly to explore ways to work together and promote our region for business development. One of the things we work together on is an annual Regional Economic Forecast and Innovation Expo.

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The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total

Commerce Funds Awarded $51,649.00 $51,648.00 $103,297.00 • The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $ 27,500.00 $ 27,500.00 $ 55,000.00 Local 146,420.00 146,420.00 292,840.00 State 51,648.52 51,648.52 103,297.04 Federal 21,000.00

Total Budget $ 225,568.52 $ 246,568.52 $ 472,137.04

• The ADOs impact on employment through all funding sources. It’s extremely difficult to measure the direct impact that the ADO has on unemployment rates. However; the ADO has worked with many local businesses to provide technical assistance in matters such as permitting, finance gaps, site location needs, zoning requirements, business planning, continuity of operations plans, succession planning, workforce issues, public support, environmental issues, as well as any other issues they may be having to include landlord/tenant disagreements. The ADO plays an all important role of advocating for business as well as providing leadership and advising local governments in policy setting that affects businesses.

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Economic Alliance, Okanogan County

Summary of Best Practices Shared and Implementation

Grantee: Economic Alliance, Okanogan County Grant Number: S14-75106-415 Time Period Covered: July 1, 2013 – June 30, 2014

• Current employment and economic information:

According to the April 2014 Labor Market Summary compiled by the Employment Security Department, Okanogan County’s unemployment rate decreased from 9.6% to 7.8% between April, 2013 and April 2014. The Civilian Labor Force in Okanogan County was reduced by 0.9% between the same period, mostly from discouraged workers and retirements. Mining, logging and construction employment increased from 610 jobs in April 2013 to 60 jobs in March 2014. The construction employment has either stabilized or grown year over year for the last four months. Leisure and hospitality (primarily hotels and restaurants), in Okanogan County jumped by 140 jobs from April 2013 to April 2014. The Colville Tribe has started construction on a $40 million dollar resort, which will be located just out of Omak. This will be a destination resort with a conference center, hotel, and casino. 300 construction jobs will be needed to complete this facility. According to the Eastern Washington University Public Policy Institute, population in Okanogan County has had slow growth for the past 10 years, from 39,564 in 2000 to 41,193 in 2013. Recent in-migration has recently been from births and deaths, not from people moving into the county. Median age in Okanogan County is 43.56 compared to Washington State’s at 37.13 and per capita personal income is $37,674 compared to Washington State’s at $43,735. Wages contributes 53.6% of personal income followed by transfer payments (26.2%) and investment income (19.8%). Income generated in the five largest sectors includes Government (30.9%), Farm Earnings (18.8%), Retail Trade (9.8%), and Health Care and Forestry. Strategy for recruitment/retention of businesses includes strengths such as labor force, power, location, taxes. Top Industry Clusters in Okanogan County includes Crop Production, Ag & Forestry support activities, and Forestry & Logging. Kinross Gold Mine is an important source of jobs in Okanogan and Ferry Counties. This operation accounts for 610 jobs (direct, indirect, and induced) and generates $27 million in local payroll. The mine site has enough ore reserves to sustain the operations for a short time. They anticipated a closure date of the Kinross mine site is mid 2015. The Economic

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Alliance has been working with Kinross Gold and Okanogan County to identify the direct impacts to the north county taxing districts, as well as to Okanogan County. The Economic Alliance will also be working on a task force to help with the economic impacts of this business closing down. We have notified WorkSource Okanogan and will also be working with them to help identify if this business can qualify for the Trade Act Assistance Program or at least a dislocated workers program. Kinross is going to give their employees the option of transferring to one of their other mines, but many do not want to leave the area. Other possible employment impacts could include the hospital and school districts and other service providers, as we see families leave for other employment opportunities. Recently the Economic Alliance was notified that Kinross Gold has pulled their current exploratory permit application that has been under review by the EPA since 2009. A bright spot on the employment picture for Okanogan County was the opening of the Omak Wood Products in October, 2013. Omak Wood Products currently employees 150 workers, plus contracts with an addition 15 - 25 truckers and workers to harvest the trees. The Economic Alliance worked extensively with Omak Wood Products to secure $100,000 from the WorkStart Program to help train employees and get them up to speed on the equipment needed to produce more veneer. These funds were passed through the Economic Alliance to the company, with no funds provided to the Economic Alliance. In April 2014, Omak Wood Products shared with us that they are planning to expand the mill to add the plywood line to their facility. This will employ an additional 30 individuals when all three shifts are up and operational. They are requesting that we again work with Sally Harris from the Department of Commerce to see if we can obtain an amendment to our Workstart Contract to include the additional training that will be needed to get this line up and operational and the employees fully qualified to work in these positions. We will continue to work with Department of Commerce and Terry Lawhead to finish the application as this has a definite economic impact to Okanogan County. The Economic Alliance has continued to work with the Colville Tribe on the HUB Zone designation and the wage reporting requirements for the Department of Labor. This will help develop an accurate reflection of Okanogan County’s current and past unemployment numbers. • Other relevant information: The Economic Alliance continues to work with small businesses and our local partners to identify needs. The Economic Alliance completed a Small Business Survey that was shared with all the chambers of commerce in our county, as well as cities and tourism members on our distribution lists. This survey provided the Economic Alliance with specific information directly from the business community on how we can best serve their needs. The number one concern for businesses in Okanogan County was government permitting and regulations. Stampede Forest Services, a new business startup that is located at the Colville Tribal Industrial Park location in East Omak, entered into a 5 year contract with Omak Wood Products to purchase their core. The company has invested over $200,000 in equipment and infrastructure improvements needed for their equipment to be operational. The Economic Alliance worked with them to assist in workforce needs, connecting them with the Okanogan County PUD and financing options. They currently have 12 employees.

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The Economic Alliance participated with the NCW Economic Development District to discuss the NCW Community Economic Development Strategy. Meetings were also arranged and attended by the Executive Director and the Impact Washington representative and a local manufacturing business. The Economic Alliance also sponsored a Social Media training workshop. Over the past several years, social media has changed the world. Facebook has become the number one activity on the web. Staying ahead of the curve with social media will provide an edge in retaining business, as well as acquiring new customers for businesses. On the second day of this two-day workshop, presenter, Jennifer Tate with Earth & Sky Studios, touched on social media platforms such as HootSuite, Sprout or Sprinklr and how they can assist in marketing businesses. The Economic Alliance is also utilizing our Facebook page, email distribution lists, and website to market other business resources available to our local businesses. We had 12 businesses in attendance. The Economic Alliance’s Executive Director participated in the Okanogan-Omak Business Week as a “Company Advisor”. The week long program held at the Okanogan County Agriplex is for High School juniors from both Omak and Okanogan. It provides students with a good first look about what is necessary to start and operate a business. The Economic Alliance also contributes funds as a sponsor for this event. The Economic Alliance worked with WorkSource to plan the 2014 Job Fair. This Job Fair was held on February 27 at the Omak Community Center and is a great opportunity for potential employees to meet with employers. This year we had 276 job seekers and 36 employers. The number of job seekers was down compared to last year but that was due to the recent employment opportunities at Omak Wood Products. The Economic Alliance’s Executive Director and Administrative Assistant attended the 2013 5th Annual NCW Success Summit, which was held at the Okanogan School District’s Middle School. Over 160 people attended this year’s day-long summit. Discussion centered around rural area successes and how to expand on these successes. The afternoon participants broke into groups to brainstorm ideas on issues such as recruiting volunteers, developing leaders, engaging youth in the community, and reducing waste and increasing recycling. Next year’s Success Summit will be held in Douglas County. The Economic Alliance’s Executive Director was invited by Gebbers Farms to meet at the Brewster packing plant with the Jamaican Minister of Labor. We provided them with our demographic packet that has economic data, unemployment rates, utility information and broadband capabilities. We also were available to answer any questions they had on Okanogan County and our resources. The Economic Alliance has continued to work to promote Okanogan County as a great place to live, work, or locate a business. The Economic Alliance has responded to inquiries about relocation of businesses to Okanogan County, as well as inquiries from existing county businesses regarding information about the area. We were able to provide information about the area, including demographic, labor force, possible facilities, major employers, utilities, and transportation. To help us promote our area, the Economic Alliance’s Executive Director met with a VISTA Volunteer with Okanogan County Community Action Council to discuss developing a user-friendly marketing tool for Okanogan County. The current Okanogan

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County Profile has a lot of information and demographics, but we have found that when sending out information, this profile is too long. A simple fact sheet was developed and is a very condensed and easy to read and access. The Economic Alliance also continues to provide a “home base” for the Okanogan County Tourism Council. Their toll free phone number is answered by the Economic Alliance and the Administrative Assistance continues to serve on the Board. She also participated in a meeting held in Chelan with the Economic Development District, VIA 97, and various tourism groups around the NCW area. The group discussed research and beginning an in-depth effort to learn more about primary, secondary, and emerging tourism markets. Specifically, they are interested in learning more about where high-dollar, high-opportunity visitors to NCW might live, and what types of experiences they are looking for. The Economic Alliance also contracts with the SBA to provide business counseling through the Small Business Development Center. Our Business Development Specialist, Lew Blakeney, works directly one-on-one with businesses or prospective businesses to provide confidential, no-charge businesses counseling services. During the July, 2013 to June, 2014 time period, the Okanogan County SBDC program helped clients obtain $468,000 in loans and secured $492,000 was owner’s investments and seven businesses were started and 48 ½ jobs were created or retained. • The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $46,447.00 $46,446.00 $92,893.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15** Total

Private $10,000 $0 $ 10,000 Local 118,500 120,000 237,000 State 90,000 0 90,000 Federal 29,447 30,000 59,447

Total Budget $247,947 $150,000 **$396,447

** Anticipated Budget State funds received were through the Workstart Program and were passed through the Economic Alliance directly to the company.

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Pacific County Economic Development Council

Summary of Best Practices Shared and Implementation

Grantee: Pacific County Economic Development Council Grant Number: S14-75106-429 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

I downloaded a report (please see attached) from ESD showing May 2014 compared to May 2013, which appeared to be the most recent report. It shows the following: A reduction of 1.7% in our unemployment rate; A reduction in the number of unemployed of 110; An increase in employment of 500; And an increase in the labor force of 390.

• The net change from the previous year's employment and economic information using

data produced by the employment security department; A reduction of 1.7% in our unemployment rate; A reduction in the number of unemployed of 110; An increase in employment of 500; And an increase in the labor force of 390.

• Other relevant information on the community or regional area; In addition, sales tax receipts have increased across the county; Home sales have increased; Each incorporated city has reported new business licenses; Initiative 502 businesses have leased all available buildings at the Port of Willapa Harbor; And, these companies are projecting a combined total investment of over $100 million, with 400 employees. The marine industries have experienced some change during the last year, but the levels of employment are holding steady, thus far, with some projected growth based on two new projects that should be coming online/beginning construction in the near future.

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Update: Pacific County EDC has been working with Jessie’s Ilwaco Fish Company for the last several months to obtain a permit for a canning operations in South Bend. Contributions of time and support by the company, elected officials, the EDC and other businesses have assisted in moving this project forward. Department of Commerce staff were also very helpful in supporting the effort. More recently, Jessie’s announced plans to construct a new, environmentally-friendly cold storage facility in Ilwaco, at the Port of Ilwaco. Again, the Department of Commerce has been helpful in working with the company and providing information on incentives to assist with this project. The facility will also serve a community need for public use for a portion of the space, which has the potential to help other local companies. Currently, the company projects employing approximately 50 people when the project is completed. • The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $37,910.00 $37,910.00 $75,820.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $21522.50 $25000.00 $46522.00 Local 17000.00 8000.00 25000.00 State 37910.00 37910.00 75820.00 Federal 0.00 0.00 0.00

Total Budget $76432.50 $70910.00 $147342.00

• The ADOs impact on employment through all funding sources. According to the report downloaded from ESD, from June 24, 2014, we have produced: A reduction of 1.7% in our unemployment rate; A reduction in the number of unemployed of 110; An increase in employment of 500; And an increase in the labor force of 390. Annual reports may include the impact of the ADO on:

• wages, • exports, according to a recent report, our exports are greater than $444 million, as of

the time of the report – this data was generated using data from the US Dept. of Commerce, which is part of a regional economic impact study.

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• tax revenue, saw an increase in the first quarter • small business creation, according to the four municipalities, 11 new businesses

have been established YTD, • foreign direct investment, • business relocations, • expansions, • terminations, and • capital investment, according to the county and four municipalities, 67 building

permits have been issued; in addition, the PUD has reported establishing 41 new PUD services, thus investment is rising.

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Pend Oreille County Economic Development Council

Summary of Best Practices Shared and Implementation

Grantee: Pend Oreille County Economic Development Council Grant Number: S14-75106-430 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

Pend Oreille County Unemployment Rate: May 2014- 9.3% Source: Washington State Employment Security Department

• The net change from the previous year's employment and economic information using

data produced by the employment security department;

Pend Oreille County Unemployment Rate: May 2013- 11.1% Net decrease of 1.8% Source: Washington State Employment Security Department • Other relevant information on the community or regional area;

Pend Oreille County has been slow to recover from the recession but is closing some of that gap via the announcement to reopen the Teck Mine in Metaline Falls which will result in the hiring of 160 additional employees by the end of the year.

Pend Oreille County is unique in terms of population density, transportation, industries and infrastructure. It is very rural with only 9.3 persons per square mile compared to 101.2 in the state. There is limited transportation and dependence on resource extraction, specifically,

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lead and zinc mining followed by timber harvest. Only 36 percent of land in the county is privately owned, and about 58 percent is owned by the federal government.

Pend Oreille County continues to be listed as a Historically Underutilized Business (HUB) zone with no foreseeable change to this designation. As of January 2014, Pend Oreille County was added to the Spokane Metropolitan Statistical Area (MSA) as a result of high commuting patterns to Spokane County. The impacts of this designation are still being studied to determine the full effect this will have to our area.

• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $34,431.00 $34,431.00 $68,862.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Contributions Private $449 $0 $ 449 County, PUD, SCL, KTI,

Port of Pend Oreille Local 80,000 85,000 165,000 DOE Integrated Planning

Grant State 65,820 0 65,820 Federal

Total Budget $146,269 $85,000 $231,269

• The ADOs impact on employment through all funding sources. The Pend Oreille Economic Development Council (EDC) provides the forum for community, government and business representatives to work together to promote economic development. Depending on the specific activity, the role of the EDC may be to lead, partner, coordinate, collaborate, facilitate, support or monitor as deemed appropriate by the council members. The EDC has had a productive year with many projects happening. Among these projects, the EDC led the Selkirk Community Planners in exploring redevelopment opportunities for the Teck property site outside of Metaline Falls, developed classes through a formalized agreement with Salish Kootenai College for the Kalispel Career Training Center (KCTC) in Cusick and topped off the year with an amazing celebration in Newport with the Capitol Christmas Tree. The EDC has assisted business entrepreneurs in the start of their businesses, existing businesses with expansion needs, provided on site business counseling and access to capital through the rural development loan fund.

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EDC Projects

• The construction of a seasonal covered vendor area for events such as craft fairs, farmer’s markets, performances, and other such economic opportunities for local residents and members of the Kalispel Tribe of Indians. The covered areas are located adjacent to the Tribe’s new Cultural Exploration and Rest Area along Highway 20, providing visibility and visit ability for the site. This project created 5.5 jobs.

• The expansion of the Port’s existing shop facility. A 100’x100’ extension on the southern end of the current shop building was added. In addition to the increased area for maintenance and repair of locomotives and other equipment, a locomotive paint booth was added to the facility which enhances the ability to work on locomotives. This project assisted in expanding opportunities for the Port in working on additional equipment for other businesses and will help ensure continued employment for the Port’s current 13 employees. This project created 2 additional jobs and retained 13.

• In partnership with the Cutter Theatre, an incubation space was renovated to attract a new business in which 2 jobs were created and 4 jobs were retained.

• Kalispel Career Training Center (KCTC) is a workforce development project that utilizes a formal relationship with Salish Kootenai College to offer classes across multiple disciplines to students 16-24 years of age.

• The EDC marketing committee developed a new website as well as the production of marketing materials.

Business Counseling The EDC provides business counseling to local businesses and entrepreneurs in the area who would like to start or expand a business. Services such as assistance with writing a business plan, accessing capital or acquiring a business license are often services provided. In partnership with Leslie Miller from the Procurement of Technical Assistance Center (PTAC), the EDC has assisted in getting government contracts through becoming certified HUB zone, women owned, minority owned or veteran owned. Promoting the Area Pend Oreille County had the privilege of harvesting the Nation’s Capitol Christmas Tree from the Colville National Forest located just a few miles north of Newport. The EDC headed up the coordination for this event that was celebrated by hundreds of people in downtown Newport. Businesses celebrated record earnings and food vendors sold out. The town looked festive with activities while showing off the beautifully adorned Christmas lights and decorations to hundreds of visitors. Pend Oreille County enjoyed regional and national news coverage and was promoted through rack cards highlighting business attributes of the area that traveled to Washington D.C. with the tree. An article by CNN Money gave Newport excellent exposure across the country with 167 Facebook recommendations, 52 Tweets and 46 LinkedIn shares from social media.

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Article Link: http://money.cnn.com/2013/10/04/smallbusiness/shutdown-newport/index.html?iid=H_SB_News Partnerships were forged to make this event a big success that the entire community was proud to be included. Grants The EDC was successful in its application to the Department of Ecology for the Integrated Planning Grant (IPG) to explore reuse options for the mine site which is owned and operated by Teck. This planning effort was funded with a grant from the Integrated Planning Program of the Washington State Department of Ecology Toxics Cleanup Program. This grant provided 100 percent funding for local governments to conduct studies and plan for acquisition and redevelopment of underperforming brownfield properties. The grant supports planning for adaptive reuse of properties, integrating economic cleanup and restoration and community benefit. As a result of this study, it was suggested that the greatest economic impact will be from sustaining the mine in its current operation. In order to replace the number of jobs and economic impact lost when POM eventually ceases operation, the economic repurposing effort should be broadened to include not just the POM site but the entire north county region. The regional focus area should be from the town of Cusick north. Recruitment of specialty manufacturing uses could begin now for existing industrial properties. While the mine remains open, the preliminary Adventure Sports Camp business plan can be more fully developed. Since this study, Teck is moving forward with the restart of the Pend Oreille Mine operations which will contribute to the economic growth and jobs in the county. They have hired 38 new employees and expect to have the remainder of the jobs filled by the end of the year. Currently, the average wage is $65,000 (which is well above the county average) and is anticipated to be higher once all jobs are filled. Workforce Development One of the EDC’s top priorities is workforce development to prepare youth for upcoming career development and training our workforce for upcoming jobs in the future. This fourth year for the Kalispel Career Training Center (KCTC) has been packed with highlights and accomplishments. KCTC continues to enjoy community support and is striving to serve everyone in Pend Oreille County and the Kalispel Tribe of Indians. A formal Operating Agreement with Salish Kootenai College (SKC) located in Pablo, Montana was executed outlining the relationship, goals and responsibilities of each entity. This agreement is critical to the long term success of KCTC as we move forward with College accredited classes.

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Seattle City Light, Pend Oreille County Public Utility District and the Kalispel tribe of Indians have all suggested and support KCTC and SKC’s efforts in offering a two year degree/certification degree program in Natural Resources. To achieve this goal the agreement between SKC and KCTC has been amended to accommodate this important program. The first natural resource class happened this spring including: Dendrology, Intro to Humanities, Tribal Constitutions, Intro to Fire Science and Forestry 271. Cusick, Selkirk and Newport School Districts continue to be very supportive of KCTC. A plumbing class was offered this year at Selkirk High School. Classes in metal manufacturing and multimedia were also offered to Cusick High School students. In addition, this year’s Career Day was a huge success with 275 students in attendance representing 5 school districts in Washington and Idaho. Other While historically, Pend Oreille County has struggled with unemployment, the EDC is exploring creative ways to combat this. Some of the other actions taken this year include:

• The EDC is furthering the effort to attract talent to the area through promoting over 500 miles of redundant 100megabit fiber to the premise that was recently put in place by the PUD through a $34 million stimulus grant. This is reflected in the first iteration of the new website and efforts will continue through the next year.

• Conducted 2 Workshops on social media and windows classes geared to new and existing business. The workshops had excellent feedback and attendance.

• Linking entrepreneurs and businesses to local resources such as the SBDC, Rural Development Loan Fund, PTAC, and Export Assistance wherever applicable.

• Working with the Forest Service on implementing the “South End Project” on the Colville National Forest. The EDC has applied for grant funding for this project.

• The EDC has partnered with organizations such as TEDD and local business groups to work towards building community capacity and asset building to address needs such as housing and medical care. The EDC participated in healthcare roundtables, workforce development forums, tourism forums, SWOT analysis, and regional planning meetings.

• Working with the Newport Community hospital as an anchor institution on how the change in the MSA designation will affect critical access care.

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The Economic Development Board for Tacoma-Pierce County

Summary of Best Practices Shared and Implementation

Grantee: The Economic Development Board for Tacoma-Pierce County Grant Number: S14-75106-436 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

Pierce County Unemployment rate: May 2014: 7.2 Source: Washington State Employment Security Department (most recent data available is May 2014)

• The net change from the previous year's employment and economic information using

data produced by the employment security department; Pierce County Unemployment rate: May 2013: 8.3 May 2014: 7.2 Net Change May 2013 – May 2014: -1.1% Source: Washington State Employment Security Department (most recent data available is May 2014)

• Other relevant information on the community or regional area;

Industry Clusters The Economic Development Board for Tacoma-Pierce County (EDB) identifies, targets, recruits and retains businesses in clusters where the Pierce County has a distinct competitive advantage.

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Our Pierce County targeted industry clusters are: clean water technology aerospace cyber security logistics and international trade medical services Cluster Acceleration In addition to its day-to-day recruitment and retention case work, the EDB focused on the five key clusters of aerospace, clean water technology, logistics/international trade, health services, and cyber security. These are long range plays. Dozens of leaders from the private and public sectors are actively engaged on teams working to develop and implement growth strategies for each cluster. Brief highlights: Aerospace Team (Tacoma Pierce Aerospace Partners). Co-hosted the second annual Pierce County Aerospace Summit; provided business assistance to dozens of local aerospace firms through our Business Retention and Expansion Program; recruited at five trade shows (The Paris Air Show, Aircraft Interiors Expo in Seattle, the Pacific Design and Manufacturing Show in Anaheim, AERODEF in Long Beach, and the National Business Aircraft Show in Las Vegas); distributed Pierce County aerospace profile to hundreds of companies globally; made direct contact with more than 600 aerospace firms. Clean Water Technology Team (Water Partners of Tacoma). Co-hosted the second annual Wellspring Conference at University of Washington Tacoma; recruited at six trade shows (Water Environment Federation’s Technology Expo in Chicago, StormCon in Myrtle Beach, American Water Works Association Expo in Denver, the National Groundwater Expo in Nashville, the BC Water & Wastewater Expo in Kelowna, and the Water Re-use Symposium in Denver); distributed nearly 2,500 Tacoma-Pierce County business location profiles to companies globally; and made direct contact with more than 700 clean water technology firms. Health Services Cluster Team. Worked toward establishment of a Research Trust Consortium among MultiCare, Franciscan, and Madigan. Logistics and Trade Cluster Team. Efforts included building toward a coalition of Pierce County businesses to support the completion of SR 167; developing an inventory of existing trade and logistics-related facilities in Pierce, King and Thurston counties; and exploring development of a regional logistics park to attract new customers to the region. Cybersecurity Cluster Team. Participated in the annual South Sound Technology (SST) conference; worked with University of Washington Tacoma’s Institute of Technology and congressional offices to craft a strategy for leveraging local cyber expertise with a particular focus on Big Data.

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• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $220,134.00 $220,133.00 $440,267.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

RCW 43.330.082 (1)(a) Local Private* $404,600.00 $404,600.00

RCW 43.330.082 (1)(a) Local Public** $327,202.00 $327,203.00

RCW 43.330.082 (1)(a) State $220,134.00 $220,133.00 RCW 43.330.082(1)(a) Federal $0.00 $0.00

Sub Total $951,936.00 $951,936.00 $0.00 Total Budget $951,936.00 $951,936.00 $880,534.00

• The ADOs impact on employment through all funding sources. 2013 – Major Business Recruitment and Retention Activity Boeing 777X (estimated 8,000 Puget Sound region jobs, multi-billion dollar investment). Boeing’s decision to build the 777X in Washington has far-reaching implications for the health of the entire state’s economy. In addition to Boeing’s Frederickson site (which employs 1,802 people), there are more than 100 aerospace-related companies in Pierce County employing 3,700 engineers, machinists, executives and other highly skilled workers. Although the 777X selection was made in early 2014, the groundwork began years before. The EDB is a founding member of the Washington Aerospace Partnership (WAP) – a statewide group that in various iterations has worked on every Boeing deal since the original 7E7 (aka 787) line in 2003. In 2013, WAP and its partners across the state, including County Executive Pat McCarthy, the Pierce County Legislative and Congressional delegations, and the Governor’s office designed and implemented a strategy to support Boeing’s decision. State Farm (1200 jobs, 300,000 square feet). State Farm leased the entire 909 A Street Building and 80,000 square feet of the Columbia Bank Center on A Street in Downtown Tacoma for an “initial loss reporting” center. Hundreds of new employees joined the downtown workforce during the fourth quarter 2013 and estimates are the company will be employing approximately 1,200 people downtown. This complex project was successful thanks to a concerted team effort by State Farm, property owners, the City of Tacoma, real estate brokers, EDB and many other partners.

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Niagara Bottling (34 new jobs initially, 18 acres, 311,000 square foot new facility, $50 million private capital investment). Niagara Bottling LLC selected a large site at the Randles Business Park in Frederickson to construct their 13th bottling plant – launching their first operations in the Pacific Northwest. Niagara, family owned and operated for over 50 years with a strong corporate commitment to community involvement, will produce the caps and bottles – and fill the bottles with water – at the facility. EDB provided the company with area information, site tours, connections with local resources, and facilitated meetings with local partners at Niagara’s headquarters as well as touring operating plants. The success of this recruitment project hinged on the extensive involvement of EDB’s partners at Tacoma Water, Tacoma Power, Puget Sound Energy, WorkForce Central Business Connection, and many departments in Pierce County including the Pierce County Executive, Economic Development Department, Planning and Land Services, Pierce County Sewers, and the WA State Department of Commerce. TriWest (50 jobs initially, 14,758 square feet). TriWest Healthcare Alliance won a $4.3 billion contract in late August to administer the VA Patient-Centered Community Care (VAPCCC) program beginning January 2, 2014. They decided to locate in Washington State where they had employed a great workforce in the past. EDB conducted a site search for TriWest and the company selected Puyallup’s South Hill Business + Technology Park. Working with The Benaroya Company and City of Puyallup, TriWest was able to build out, equip, and staff their operations quickly allowing them to be up and running within a short time. Western Institutional Review Board (200 jobs, 34,000 square feet). The Western Institutional Review Board (WIRB) approves protocols and provides ethical review of medical and pharmaceutical research projects involving human testing. The company operated out of multiple sites and needed to consolidate operations and wanted room for growth. A real estate broker working with WIRB contacted the EDB for assistance. When the client chose South Hill Business + Technology Park in Puyallup, EDB helped with introductions to the City which streamlined permitting and to WorkForce Central Business Connection which assisted the company find multiple new hires for all levels of operations. EDB partnered with Puyallup, The Benaroya Company and Puyallup Sumner Chamber to organize an area familiarization tour. Fifteen other recruitment cases were closed during the year. These projects did not get traction for a variety of reasons – they located elsewhere or delayed or cancelled their plans. Location decisions are based on a variety of factors: transportation, workforce, taxes, business climate, and incentives. For new projects, predictability of permitting and construction can play a key role in decision-making. A number of inquiries in 2013 showed interest in ready-to-build or easily developable sites. The EDB works directly with businesses, consultants, site selectors and other decision makers to provide insight and information on demographics, tax structure and incentives, education and training, connections with the labor market and hiring, utilities, transportation, identifying and touring facilities, cost of living, housing, cultural and recreational amenities, and contact with local authorities. Factors influencing site decisions vary broadly – even within industries – and EDB’s assistance is customized and tailored to the specific client’s needs and interests. The EDB teams with property developers and real estate brokers, the Port of Tacoma, Tacoma Public Utilities, Puget Sound Energy, education and training resources, elected officials and staff from cities and unincorporated Pierce County, Washington State

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Department of Commerce and others on recruitment efforts. Our professional partners’ responsiveness and proven ability to deliver are critical components of successful recruitment. The EDB also made direct recruitment contact with nearly 2,000 aerospace and clean water technology companies worldwide during 2013. Principal outreach activities occurred at a dozen trade events, which included the Paris Air Show, the largest international aerospace event of the year; as well as the Water Environment Federation’s Technology Showcase and Conference, which attracted more than 1,000 exhibiting companies and 20,000 attendees. The EDB also contacts company management through an in-house, proprietary database of more than 1,300 firms. In addition to direct contact at trade events, management at these companies receive letters and email communications from the EDB espousing the benefits of business operations in Tacoma-Pierce County. Business Retention and Expansion Bank of New York Mellon (170 jobs retained). During 2012 and 2013 the EDB worked with the firm as it considered a new location. After a property search that included sites around the Puget Sound area, the firm decided to sign a new lease in its existing building on Broadway Plaza in Downtown Tacoma, keeping 170 jobs in Pierce County. The EDB worked closely with the City of Tacoma Economic Development Department and the Mayor and assisted by providing information on employee recruitment incentives, City of Tacoma tax incentives, transportation resources and working with brokers conducting office building tours. “We have had incredible sustained success operating our business in downtown Tacoma,” said BNY Mellon Senior Vice President Steve Wolf. “We’ve been able to partner with great local universities like Pacific Lutheran University, University of Puget Sound and University of Washington Tacoma to help us develop a highly skilled workforce, and our employees consistently give back to the community as well. It has also been a pleasure working with the City of Tacoma.” MD Marine Electric (7 new jobs added). A senior management team member at Tacoma firm MD Marine Electric acquired an out-of-county competitor, Harris Electric, resulting in the relocation of Harris Electric’s commercial division to Tacoma. The EDB assisted this client by offering information on tax incentives, relocation information, transportation resources and acting as a liaison between the client and the Small Business Development Center to assist in business planning strategies. The EDB’s Business Retention and Expansion (BRE) program, directly engages local companies involved in growing, strengthening and diversifying the Pierce County economy. Because approximately 80% of new jobs are generated by existing businesses, the BRE program is a significant priority in the EDB’s Future Focus work plan. The BRE program met with the leadership at 205 Pierce County companies in 2013. These companies represent approximately 34,814 jobs. Participating firms received 190 different referrals offering assistance in meeting challenges related to workforce, financing, permitting, federal bidding and contracting, energy assistance, tax credits, lean manufacturing, relocation assistance, exporting, and more. In addition, several companies were introduced, becoming customers and suppliers for one another.

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San Juan County Economic Development Council

Summary of Best Practices Shared and Implementation

Grantee: San Juan County Economic Development Council Grant Number: S14-75106-431 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

San Juan County has historically had a labor market notable in its wide variations in unemployment due to the cyclicality of our major industries – construction and tourism. During the height of the Great Recession, our Local Area Unemployment Stats (LAUS) ran nearly a 100% increase during the winter months. During those years, the troughs would go from unemployment rates in the low- to mid-5% during the summer, and up to a high of 10% during the winter. This cyclicality meant that many working families left the island in search of better employment, often taking their school-aged children with them (which put additional pressure on our school system). The new social demands of these unemployed workers also put stress on our extremely limited social services. The San Juan County Economic Development Council has worked very hard over the past 5 years to try to mitigate and normalize the tremendous troughs that occurred each year, by encouraging year-round, higher wage industries to expand and relocate. We’re proud to report that our efforts have at least partly contributed to the much more even progression of “low season” to “high season”, giving our current cycle from the winter of 2013/14 to July of 2014 an average, and quite respectable rate of 5.2%, which is precisely the same as the United States’ non-accelerating inflation rate of unemployment (NAIRU), reported by the Congressional Budget Office, which is currently at 5.2%. Indeed, in terms of our year-round rates, we have in some months between January and July of 2014, even beaten our best months’ pre-recession. Currently, our unemployment rate stands at a respectable 3.3% for July, 2014. • The net change from the previous year's employment and economic information using

data produced by the employment security department; January-July 2013 unemployment for San Juan County: 8% January-July 2014: 5.2%

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Change: -2.8% (a decrease of nearly 54%) • The net change from the previous year's employment and economic information using

data produced by the employment security department; During the Great Recession, on average, Washington state and the rest of the US lost about 6% of their employment base. However, San Juan County lost 12% of all jobs and we did not reach the lowest levels of employment until 2011 – well after most other regions had begun to rebound. As mentioned previously, San Juan County’s labor force and economy follow a seasonal trend of peak unemployment/lowest gross business income (GBI) in January of each year, and lowest unemployment/highest GBI in the summer. The divergence between annual high and low unemployment rates increased since the start of the recession, but has completely. While in 2011, the seasonal trough of unemployment went from a high of 10% in January 2011, to a low of 5.3% in July 2011; this year we’ve seen a high of only 5.9% in January 2014 to a low of 3.3% in July 2014. In terms of individual job gains, San Juan County’s workforce has not yet fully recovered, though we’re gaining ground. As mentioned before, due to the sometimes transient nature of our greatest job sectors, particularly the construction and services industries, many workers migrated away from the county during the depth of the recession and did not come back. From 2008 to 2011 (the low-point economically for San Juan County), 12% of jobs were shed. However, job gains have been seen every year from 2012 through the end of 2013 (most recent data available from the US Census Bureau), and there’s been nearly a 4% increase in job gains since the trough of 2011. • Other relevant information on the community or regional area; Since the 1980’s San Juan County’s economy has been driven by two sectors: tourism and construction (driven by the building of vacation homes and retiree residences). The construction sector was particularly hard-hit, shedding 30% of all jobs from 2008 to 2012. Additionally hard hit were maritime trades – all of our shipyards, marine business and boatyards were severely hampered by recessionary decreases in leisure boating – decreases which have only recently begun to improve. The San Juan County Economic Development Council researched areas of greatest concern during the recession and worked to improve economic conditions for the hardest hit sectors. For the construction industry, the SJCEDC worked with the Northwest Workforce Council during the height of the recession to offer weatherization tech training for local builders. For maritime industries, we created a marine tech training program for the workers of local boatyards, working with the Northwest Center of Excellence for Marine Manufacturing. This upskilling enabled our boatyards to offer more and better services. Since San Juan County has more small business licenses per capita than any other county in Washington state, one of our main focuses during the recession has been to offer training for small business owners, in order to help them stay strong.

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During the course of the recession, and continuing today, the SJCEDC has offered a wide variety of courses for entrepreneurs – startup courses, marketing courses, financial literacy courses, and many more – plus individual business counseling. These course offerings have improved the entrepreneurship climate in San Juan County significantly. Since 2011 (the height of the recession for San Juan County) business license signups in the Town of Friday Harbor (our one municipality with business licensing requirements) have increased 37%. • The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $35,805.00 $35,804.00 $71,609.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $3,000 $3,000 $6,000 Local 54,000 59,000 113,000 State 35805 35,804 71,609 Federal 0 0

Total Budget $92,805 $97,804 $190,609

• The ADOs impact on employment through all funding sources. Over the past few years, in response to the economic extremes brought to our community by the Great Recession, the San Juan County Economic Development Council has worked in particular on larger initiatives such as improving broadband speeds in our county, and in working to grow high-wage sectors such as maritime. Additionally, we continue to offer tailored business counseling – for businesses that are struggling, looking to expand, or looking to move here. Some specific, small business assistance outcomes are listed here below: One of our more interesting small businesses, Mindplace, a manufacturer of biofeedback electronics, wanted to expand their product line. The SJCEDC helped them brainstorm the marketing of their new products. We then assisted them in a STEP grant in order to help fund the marketing of their new product, which ultimately they were awarded. We also assisted them on their public relations efforts. After our assistance, they were able to hire an additional worker as a web programmer.

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A small manufacturer of handbags came to the SJCEDC for insight into expanding their operation. Currently operating a storefront and a retail website, the business had two employees. With the help of the EDC, they increased their manufacturing output through better marketing, which resulted in an additional hire this past summer. As we did in 2011, when we worked to obtain funding from WorkSource to send 10 workers to go to blower door school in Bellingham, we have been working in the past few quarters to find funding to send San Juan County contractors to green building educational opportunities. This funding will enable our major contractors to offer better services, which will likely result in additional hires. The EDC helped a personal health coach, to start up her consulting business, including helping her with marketing and planning. She is now working full-time. The EDC worked with the owners to start a new restaurant on Orcas Island, particularly in helping them research demographics in order to make appropriate business decisions. This resulted in the creation of two jobs. Another start-up, a body care products company, was helped by the EDC – we helped the owner through the business licensing process, connected her to other agencies (SBDC, DOR) which resulted in her establishing a successful business, employing one. We worked with one of our most fascinating businesses, which is one of the premier manufacturers of ultrathin foil filters. Their filters are used by NASA – and have gone on dozens of space flight missions starting in the 1970’s - from Skylab to the Mars Curiosity Rover and beyond. We helped them brainstorm ways to improve their business, leading them to create a marketing assistant position (we helped write the job description as well). We then helped them create a marketing plan. This led to the creation of one job – and a job that is likely to increase their market share, creating more very high-wage manufacturing jobs in San Juan County. West Sound Lumber was about to lose its top, highly-skilled mill worker because of his immigration status. This would have meant the mill would have been shuttered as very, very few millworkers even know how to operate the antique mill – a mill which supplies many of our contractors and consumers of high-end lumber. The EDC worked with the company and their attorneys and wrote a letter in support of the company for Senator Patty Murray and US Customs and Border Patrol. Ultimately, the worker’s position was saved, indefinitely, which saved the mill. Our local power cooperative, OPALCO, has been working to expand its fiber network to provide private parties with high-speed broadband. As part of its effort, OPALCO has relied on the SJC-EDC to help with public relations. In particular, our work has enabled several app developers to move to the Town of Friday Harbor as they now had access to super-fast internet. Additionally, as the SJC-EDC works with landowners to smooth the way for OPALCO to install fiber with owner permission, more and more fiber is being installed in the community, which will ultimately result in more and more high-wage jobs being created. While the proof will be in the pudding – a pudding which is likely to take several years to set up – we do know that communities which invest in fiber are far more likely to have higher-wage jobs and lower unemployment. Indeed, a study by the Brookings Institution has shown that for every one percentage point increase in fast broadband penetration, employment is projected to increase by around .25 percent a year. Other research has indicated exactly the

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same thing: A study by MIT researchers showed that broadband added about 1.2% to a community’s growth rate. A World Bank study from 2009 found an even stronger correlation – that broadband added around 12% to the growth rate in the number of jobs. Because of these data and many others, working to improve broadband speeds and connectivity in our community has become one of our top focuses for job creation. • Additional relevant information on the community or regional area; Recruitment Since the Great Recession, part of our focus has shifted from strengthening our existing industries to looking for new, more stable industries through recruitment and infrastructure improvement. In particular, the SJCEDC is working to improve broadband speeds and reach in our county – these efforts have already paid off in that several new app developer companies have opened offices here. We created a brochure to send interested companies – please see attached. Additionally, the SJCEDC is working to foster and recruit small manufacturing and value-added ag companies to the county. Recent notables include a hoist parts company (www.hoistpartsnow.com) and several phone app companies. Please see our new recruiting brochure below. One of our best efforts post-recession has been a “Come Home to the Islands” recruiting initiative. We’ve begun contacting graduates of San Juan County high schools who’ve started businesses, in order to invite them back to the islands. We are working with local municipalities and other entities to make it favorable for graduates to come here. Another important initiative for us has been to partner with neighboring counties to recruit businesses to our region. With Island, Skagit and Whatcom counties, we have created the Northwest Washington (“NWWA”) partnership in order to build businesses in our region. While each county desires that businesses relocate to our counties, it’s nearly as good to have businesses move to neighboring counties – certainly from a tourism and supply chain standpoint. One of the group’s initiatives was to bring a recruitment piece to the Cross-Border Expo in June of this year. Please see NWWA brochure below. Retention/ Expansion The SJCEDC has worked to make San Juan County’s existing businesses more resilient during this difficult time. As mentioned above, the construction industry was particularly hard hit and the SJCEDC worked with the Northwest Workforce Council to offer weatherization tech training for local builders. The construction industry is again For maritime industries, we created a marine tech training program for the workers of local boatyards, working with the Northwest Center of Excellence for Marine Manufacturing. This upskilling enabled our boatyards to offer more and better services. Since San Juan County has more small business licenses per capita than any other county in Washington state, one of our main focuses during the recession has been to offer training for small business owners, in order to help them stay strong.

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During the course of the recession, and continuing today, the SJCEDC has offered a wide variety of courses for entrepreneurs – startup courses, marketing courses, financial literacy courses, and many more – plus individual business counseling. Startup Nearly 100% of San Juan County business is driven by small and micro-business. Except for government, only one of our existing employers has more than 50 employees. These small businesses create the backbone of our economy – serving locals and visitors alike with necessary products and services. The San Juan County EDC assists dozens of startups every year. This work is critical in our area – San Juan County boasts over 3,000 “active reporting” business licenses (more than any other county in Washington state), with more new businesses being created every day. Recent notable startups locally include: Island Hoppin’ Brewery (www.islandhoppinbrewery.com) and San Juan Island Distillery (www.sanjuanislanddistillery.com). Additionally, SJCEDC’s startup course offerings have improved the entrepreneurship climate in San Juan County significantly. Since 2011 (the height of the recession for San Juan County) business license signups have increased 37%. Please see brochures, next pages…

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New Recruiting Brochure…

About the

San Juan County EDC

Our mission statement: The San Juan County Economic Development Coun­cil (EDC) strives to strengthen and diversify the economy of San Juan County. We believe a strong economy builds a strong community.

The EDC works to build an en­vironment that helps business owners create jobs. We serve business: linking organiza­tions and resources, providing valuable information, render­ing assistance and advocating for an improved island business environment.

Please visit our website for a wide range of information, links, and other resources. If you have a question, call 360-378-2906 or email us at [email protected].

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Orcas Island Chamber of Commerce 360-376-2273

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Development Coundl 360-378-4662 [email protected]

Port of Friday Harbor 360·378·2688 [email protected]

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Port of Orcas 360·376·5285 [email protected]

San Juan County Auditor 360-378-2161

San Juan Islands Visitors~ Bureau 360-378-3277

[email protected]

Skagit Yaney College 360·378·3220 [email protected]

SJC Ap icultural Resourus Committee 360·378·2906 [email protected]

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360·378· 2810 [email protected]

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PO Box3053 • 60 First Street, Suite2 Friday- Harbor, WA 98250

Phone: 360.378-2906 Email: [email protected]

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Business in San Juan County-only for those

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highest quality of life when choosing a

business location.

With an extraordinary, world­

renowned location, proximity to major

metropolitan areas, excellent schools, a very

low crime rate and a well-educated work

force- quality of life is guaranteed.

Features: • Cohesive community spirit.

• Extraordinary natural beauty.

• Moderate weather.

• Very low crime rate.

• Proximity to Seattle, Everett, Vancouver, BC.

• At the center of marine recreation in Washington State.

• Business-friendly, with a responsive and helpful

planning department.

• Deeply cultural communities.

• Ready pool of skilled and educated local

residents.

• Orca whales, eagles, deer and red fox share your business's backyard.

• Excellent schools and community services.

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SPOTLIGHT ON BUSINESS: Luxe! Corporation on San Juan Island is the wor!dJs preeminent supplier of thin foil filters and thermal evaporation equipmentJ used by organizations like NASA and GE- on Earth and beyond!

Contact us today! Ph: 360.378-2906

Email: [email protected] W\WJ.sanj uansedc.com

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New Northwest Washington Region Brochure…

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Economic Development Association of Skagit County

Summary of Best Practices Shared and Implementation

Grantee: Economic Development Association of Skagit County Grant Number: S14-75106-433 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

Current employment and economic information for the community Skagit County unemployment rate: May 2014: 7.1% May 2013: 8.4% Net Change: -1.3% Source: Washington State Employment Security Department

NONAGRICULTURAL WAGE AND SALARY WORKERS IN THE MOUNT VERNON MSA, PLACE OF WORK _1/ QUARTERLY BENCHMARK: December 2013

SEASONALLY ADJUSTED

May

2014 IN THOUSANDS (Prel.)

Total Nonfarm 3/ 47.7 Total Private 36.4 Goods Producing 9.3 Mining, Logging, and Construction 3.3 Manufacturing 6.0 Service Providing 38.4 Private Service Providing 27.1 Trade, Transportation, and Utilities 9.7 Retail Trade 6.9 Leisure and Hospitality 4.6 Government 11.3 Federal Government 0.4

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State Government 1.4 Local Government 9.5

Workers in Labor/Management Disputes 0.0 _1/ Excludes proprietors, self-employed, members of armed forces, and private household employees. Includes all full- and part-time wage and salary workers receiving pay during the pay period including the 12th of the month.

Prepared by the Labor Market and Economic Analysis branch using a Quarterly Benchmark process. This process uses the most recent quarter from the Unemployment Insurance Tax Reports (currently December 2013) and estimates employment from that point to present.

Net change from the previous year's employment and economic information

NONAGRICULTURAL WAGE AND SALARY WORKERS IN THE MOUNT VERNON MSA, PLACE OF WORK _1/ QUARTERLY BENCHMARK: December 2013 Numerical SEASONALLY ADJUSTED Change

May. 2013

to

IN THOUSANDS May. 2014

Total Nonfarm 3/ 1.2 Total Private 1.0 Goods Producing 0.7 Mining, Logging, and Construction 0.3 Manufacturing 0.4 Service Providing 0.5 Private Service Providing 0.3 Trade, Transportation, and Utilities 0.2 Retail Trade 0.0 Leisure and Hospitality 0.0 Government 0.2 Federal Government 0.0 State Government 0.0 Local Government 0.2

Workers in Labor/Management Disputes 0.0

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Business Attraction – EDASC has an active business attraction program. The focus is on manufacturing with an emphasis on certain sectors or clusters including: Agriculture – value added; Aerospace; Marine Industry; Wood Products; Advanced Manufacturing / Composite; Clean Energy / Clean Tech; Small to Medium Technology. Online GIS Property Search & Demographics: EDASC updated www.Skagit.org with a full scale property and demographic search tool that includes all available industrial and commercial properties. The tool uses GIS data to speed up and simplify the process of site selection analysis so that companies can quickly identify the optimal location for their business start-up, expansion or relocation. Trade Shows: Skagit County was represented at the following tradeshows July 1, 2013 – June 30, 2014: Aircraft Interiors Expo Seattle, Washington PACK Expo Las Vegas, Nevada Trawlerfest Anacortes, Washington Seattle Boat Show Seattle, Washington Cross Border Expo Blaine, Washington Tacoma Aerospace Summit Tacoma, Washington Williams & White Industrial Show Burnaby, B.C. Governor’s Conference on Aerospace Everett, Washington Pacific Marine Expo Seattle, Washington FABTECH Chicago, Illinois Wind Power Las Vegas, Nevada AMEON Bellevue, Washington Aerospace Defense & Supplies Summit Seattle, Washington GLOBE Environmental Vancouver, B.C. SAMPE Seattle, Washington Site Location Services: EDASC contracted, beginning in June 2012, with a site location company to represent Skagit County at trade shows. They represent us at 6 trade shows per year. Jobs and Economic Growth: Aurinco – Anacortes Update – company has installed the equipment needed to eliminate the laminating work done in China and completed the facility modification to accommodate the new production. After reviewing the production process efficiency and quality control, the firm elected to bring the soldering work back from South Korea and to do both soldering and laminating right here in Skagit County. Firm hired two new workers for laminating and four workers for soldering, along with a new production supervisor and an administrative assistant for a total of seven new family wage jobs and domestic production of the solar panels. Aurinco is located in east Anacortes off of Reservation Road.

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Blank Law + Technology – Mount Vernon Update – this innovative law firm & cloud computing company opened their new offices on College Way (former Sager’s Restaurant). They have 27 employees. Company hired several new employees from Skagit County and the balance moved up from Seattle. Stable, family wage jobs moved from Seattle to our county.

Cyson, Inc. (QCI Global) – Burlington Update – Cyson recently purchased the assets of a company in the automotive services supply sector and will be marketing those products under the Quick Cut Sanders brand and is located in the former Walton Beverage facility in Burlington off of Walton Way. Mass Spec Detectives – Sedro-Woolley Update – Owner secured private financing this spring and has increased sales by a factor of four. Expects to reach nearly one million is sales and secured a $15,000 loan for material handling equipment. Mass Spec Detectives operates out of a location in northwest Sedro-Woolley. Glapin-Milphrey Architectural Metrology – Burlington & Mount Vernon Worked with client to locate warehouse and office space to support relocation from Seattle. Over $800,000 invested so far and six new jobs. This high tech firm measures 3D space and converts spatial information for rapid space modeling, and for building information models. Architects, construction contractors, museum exhibition managers, and others who manage enclosed spaces benefit from this company's technology. Glapin Milphrey opened their equipment center in Burlington at the North Hill location on November 2nd with an open house featuring the mayors of Burlington and Mount Vernon. Business Assistance Small Business Development Center / Business Retention & Expansion: The Economic Development Association of Skagit County offers technical assistance to businesses through the Small Business Development Center (SBDC) and our Business Retention & Expansion (BRE) programs. Working to ensure the survival and growth of existing Skagit County businesses is an important part of EDASC’s mission for economic development. Business Advising: EDASC offers no cost, confidential business advising for existing, expanding and start-up businesses. Business owners and future business owners receive assistance with preparing business plans, creating financial projections, improving marketing techniques, analyzing financial information, buying and selling a business, or approaching a lender for a business loan. Economic Gardening: In 2009, the Board of Skagit County Commissioners approved special funding from the Public Facilities Fund for an Economic Gardening Program that is managed by EDASC. These additional funds provide special services to start-up and growing businesses in Skagit County. Entrepreneur Program: In partnership with the Washington Employment Security Department, the Washington Division of Vocational Rehabilitation and the Washington Department of Services for the Blind, EDASC has worked with individuals looking to create their own job and those additional jobs that come with a thriving businesses. Workshops: Every month EDASC hosts a number of workshops on a wide range of business topics. Workshops focus on emerging trends and best practices to give our business owners every possible

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advantage. Sessions are streamed live on the internet to allow those unable to attend in-person full access to the material presented. Latino Business Retention and Expansion Program (LBRE Program) “El Programa Para La Retencion Y Expansion Del Comercio Latino”: The goal of EDASC’s Latino Business Retention and Expansion, or LBRE program, is to support the creation, development, expansion and survival of Latino businesses in Skagit County. Since the program was established in 2004, it has assisted Latino business owners in securing over $2.5 million in loans, including $255,000 for 2013. At the same time, the program is now being recognized on a national level.

IPZ – Value Added Agriculture: The Skagit Valley Value Added Agriculture IPZ supports and promotes innovative approaches within the agricultural industry that combine research and technology resulting centered around the valley’s rich agricultural resources. The IPZ is a partnership between EDASC and the City of Mount Vernon, Port of Skagit, Skagit Valley College, Skagit County, Washington State University and the Northwest Ag Business Center.

EDASC Foundation: The EDASC Foundation was established by EDASC to develop, implement and fund innovative research and education programs in cooperation with the institutions of higher education, private business and other interested parties.

Currently the EDASC Foundation is the governing entity for Leadership Skagit, a partnership with Skagit Valley College, and Washington State University, and provides leadership to build a coalition on the issue of early learning in the community to strengthen our future workforce.

Other relevant information on the community or regional area Through our work with our peers and the business community a number of best practices have been followed:

o Access to capital: Businesses report access to capital is still a barrier to some expansion projects. To this end EDASC has worked with the traditional and emerging funding communities to educate, inform and create connections to assist in better matching funders with projects. EDASC has continued to partner with the SBA and USDA to provide multiple lender forums for bankers and the business community.

o Regulatory challenges: Some businesses report regulatory issues are of significant concern. EDASC has both worked with the relevant regulatory bodies to create stronger communications with these businesses while also referring businesses to firms specializing in regulatory compliance.

o Real Estate: EDASC participates in monthly meetings with commercial/industrial real estate brokers to further enhance job development.

o Partnerships: EDASC works to continually build partnerships with all local, state and federal agencies and jurisdictions on economic development issues and projects. And, EDASC works collaboratively with other regional ADOs to form a strong regional partnership.

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Skagit River Bridge Collapse Impacts The Governor provided $150,000 from the Strategic Reserve Fund for us to provide information to the Greater Seattle & Greater Vancouver areas that we were open for business. In our opinion this had a profound effect and helped businesses survive this ordeal. Conducted Business Impact Survey – results:

Business

Contacted Job

Count Prior to Incident

Job Count After

Replacement

Change Comments

Restaurant, Mount Vernon

7 4 -3 Shop later closed due to disputes with Franchisor

Hotel, Burlington 28 28 0 North of disruption, patronage increased during incident

Furniture store, West Mount Vernon

8 8 0 Detour traffic impacts temporarily reduced customer counts

Manufacturer, Burlington

61 61 0 Traffic impacted deliveries and employee arrival times

Manufacturer, Burlington

4 4 0 Traffic impacted deliveries and employee arrival times

Retail, West Mount Vernon

5 5 0 Detour traffic impacts temporarily reduced customer counts

Hotel, Mount Vernon

17 17 0 Detour caused drivers to believe access was closed

Hotel, Mount Vernon

10 10 0 Detour caused drivers to believe access was closed

Restaurant, Mount Vernon

21 21 0 Detour caused drivers to believe access was closed

Restaurant, Mount Vernon

31 31 0 Detour caused drivers to believe access was closed

Museum, Mount Vernon

4 4 0 Detour caused drivers to believe access was closed

Retail, Mount Vernon

5 5 0 Detour traffic impacts temporarily reduced customer counts

Mall, Burlington Various N/A N/A Operators reported corporate HQ of various shops sent hourly employees home during incident, management staff only until temporary replacement was installed. North of incident so decrease of patronage was credited to aggressive Vancouver BC media campaign warning shoppers away from Skagit County.

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Excellence in Economic Development: EDASC received a Gold Excellence in Economic Development Award from the International Economic Development Council for SchmoozeCruise – initiated in 2013 – it is a tour of 10 manufacturers. Five hundred people toured the local manufacturers. “The Excellence in Economic Development Awards recognizes EDASC as being one of the leading organizations in the industry for innovation, creativity and successful strategies,” said IEDC chair, Paul Krutko. “These awards are meant to honor the organizations and individuals who are dedicated to making a positive change in their communities. This organization uses creative solutions and inventive ideas, and offers other regions a wonderful example to learn and benefit from. The award represents an acknowledgment and appreciation for EDASC’s dedication to continuous growth within itself, as well as improving the industry overall.” The amount of funds received by the ADO through its contract with the department

FY 14 FY15 Total Commerce Funds Awarded $76,294.00 $76,294.00 $152,588.00

The amount of funds received by the ADO through all sources

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $385,800 $385,800 $771,600 Local 218,559 218,559 437,118 State Federal 35,000 38,000 73,000

Program Revenue 39,000 40,000 79,000

Total Budget $678,359 $682,359 $1,360,718 The ADOs impact on employment through all funding sources

New jobs created as a direct result of ADO effort 94+ Capital investments stemming from our work $4,086,250 Number of start-up business workshops 21 Number of businesses assisted with business planning 127 Number of businesses beginning start-up process 131 Business education workshops – seats filled 775

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Skamania County Economic Development Council

Summary of Best Practices Shared and Implementation

Grantee: Skamania County Economic Development Council Grant Number: S14-75106-434 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

Currently Skamania County has an unemployment rate of 7.8% as of May 2014 compared with 10.6% and 10.7% for the same month in 2013 and 2012. The decline in the unemployment rate was due almost entirely to a decrease in the labor force. The county lost 200 jobs in the recent recession, and has had zero job growth since hitting bottom in early 2009. In short, unemployment in the county remains high—well above the state average, and higher than most counties in the state—while job growth has been hard to come by. Changes in unemployment do not currently provide an accurate gauge of economic well-being for our region as Skamania County is still trying to recover from the recession and most likely will still be in a recovery phase for at least another year or two. Job loss during the recession was highly impacted by the decrease in government jobs with a majority of that coming from the local county government and school districts. Both have lost many jobs due to the reduction in budgets. Since April 2007 local government has seen a reduction of 100 jobs and K-12 education has lost 50 while state and federal government jobs were down about 25 jobs each over that same time. Although the county has seen a net zero job growth overall, two specific employment areas have seen job growth in the last 7 years. One is manufacturing and the second is “other services”. The manufacturing growth has been due to the expansion of an existing local cabinet manufacturer, an existing recreational equipment manufacturing company that has in sourced jobs from China, the recruitment of another small manufacturer and the addition of a couple of small breweries and a distillery.

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• The net change from the previous year's employment and economic information using data produced by the employment security department;

The county had 2,250 jobs in May 2014, 10 more than in May 2013. The year-over-year change has fluctuated from month to month, sometimes slightly positive, sometimes slightly negative. The most recent estimate showed an increase over the year in accommodations and food services, and a decline in other service sector jobs and in government.

• Other relevant information on the community or regional area; The preliminary average annual wage for the county in 2013 was $33,751, below the county average in 2012, and well below the unofficial preliminary state average of $52,635. The county is still struggling with the exodus of residents to neighboring counties for work based on the lack of industry. The existing industries have also indicated that they struggle to hire local residents because they need trained workers for specialty manufacturing. While we have many incentives to offer businesses with low utility rates, access to a major highway, close proximity to an international airport, rail, low lease rates, and beautiful scenery, it has still been a struggle to obtain new industry based on our limited population (workforce) and limited industrial property that is not shovel ready. Current cluster industries that the region is focusing on are: high tech, renewable energy, art and culture, wine/value added agriculture and healthcare. Since the ADO’s focus is on key strategic private investments within these cluster industries that result in high wage job creation in sectors with strong multipliers, major changes in unemployment figures may not happen particularly because unemployment numbers include all wage levels, not just high wage jobs. Changes in unemployment rates require broad shifts in hiring and job creation or elimination and Skamania County generally does not see those large changes to the small to medium businesses that are attracted to our area as well as our limited population base. In general, Skamania County continues to struggle with generating tax revenue. Of the 1,077,365 acres, 70.7% is Gifford Pinchot forest land, 7% is Mt St Helens Monument, 8.9% is state and locally owned public land for a total of 86.6%. Further land restrictions are also in place for the spotted owl and the Columbia River Gorge National Scenic Area leaving minimal commercial and industrial land available for development. Based on all of the above, the county currently has 1.8% of its land that is taxed at full market value. These imposed limitations along with continued reductions in federal timber dollars (that were intended to help compensate for reduced property tax revenues) further limit the ability of the county and its cities to make needed infrastructure improvements to entice new industry. • The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $33,668.00 $33,668.00 $67,336.00

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• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

Est FY 14 Est FY 15 Est Total

Private $3,500 $4,000 $7,500 Local 63,880 63,880 127,760 State 33,668 33,668 67,336 Federal 0 0 0 Sub Lease 4,260 4,260 8,520

Loan programs 90,374 85,000 175,374

Total Budget $195,682 $190,808 $386,490

• The ADOs impact on employment through all funding sources. The Skamania EDC has a small staff of 1.75, a large loan program, a micro loan program and contracts with 6 public agencies to assist them with their economic development efforts. The most successful program managed by our staff is our loan programs which have provided grants and loans of over $4.9M and has created more than 350 jobs (not including jobs that may have been created with infrastructure grants and loans made to public agencies) since 1994. Existing loans or business assistance has been provided to the following businesses since June of 2013 allowing for the increased employment or retention of existing employment: Silverstar Cabinets – ADO assisted business in its efforts to implement lean manufacturing principles as well as assist with its efforts to begin exporting products. The ADO met several times with business to discuss efforts to train local workforce for specialty manufacturing needs. Business has added approximately 30+ employees and expanded its footprint. Skunk Brothers Distillery – provided loan funds for business start-up and assisted business with finding supplemental funding sources. Business employs 3 individuals in the day-to-day operations and distilling. Portions of loan funds allowed owners/employees to attend three-day Washington Distillers Conference. Backwoods Brewing – Provided additional loan funds to assist business with expansion efforts. Business has added 7 full time and 13 part-time jobs in the last year. Slingshot Sports – Provided support in their efforts to in source jobs to their company from China by assistance with obtaining funds from the state’s export voucher program. Columbia River Wine – provided loan funds to assist with business startup. Business employs two people.

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In addition to the loan program we also provide all of our contracting agencies grant writing assistance usually for infrastructure projects. While these projects don’t necessarily have direct jobs the indirect impact (depending on the project) on jobs can be substantial. Since June of 2013 our staff has assisted these agencies with grant proposals on three infrastructure projects ranging from replacement of sewer lift stations to increase capacity and efficiency for future growth, replacement of a water reservoir to improve service to existing residents and increase capacity, and improvements to an industrial building to encourage placement of new industrial tenants on the waterfront. Also, staff submitted successful grants to different companies to increase the ADO’s ability to provide micro-loan assistance and based on these grants our micro loan programs have increased by $149,000. As ADO, we also provide two workshops a year for local residents and businesses that include topics such as accounting, exporting, and social media. We also administer a group called the Red Carpet committee which works on ways to bring new businesses into the community as well as helping our local businesses to grow and prosper. Through the group we have had recruiting events over the last two years where we held a day full of events for technology company representatives. We also helped in the recruitment of a manufacturing company to the area and supported the school district in recruiting Clark Community College through the Red Carpet Committee (RCC). Currently we are working on bringing a new industry to the county through RCC contacts. Although it is difficult to generate direct employment impacts from these activities, as ADO we have determined that these efforts do assist local businesses based on feedback we have received from the community. Our marketing efforts have also been successful in introducing people and businesses to our area.

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Economic Alliance Snohomish County

Summary of Best Practices Shared and Implementation

Grantee: Economic Alliance Snohomish County Grant Number: S14-75106-435 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

EASC NOTE: Unemployment rates are indicators of long-term trends but have shortfalls when reporting short-term economic activity. As shown below, the rate declined in Snohomish County but so did the actual number of people employed.

• Current employment and economic information for the community or regional area produced by the employment security department;

Total Good Producing jobs 77,900 Total Service Providing (private) 152,200 Total Government 38,700 Total Non-Farm 268,800

Unemployment Rate (May ’14) 5.1%

• The net change from the previous year's employment and economic information using data produced by the employment security department;

Unemployment (May ’13) 5.4% Unemployment (May 14) 5.1`%

Change -0.3% Total employment May 2013 – May 2014 actually decreased by 500 jobs in

Snohomish County. Data source: WA State ESD, May 2014

• Other relevant information on the community or regional area;

Snohomish County is the manufacturing center for the State of Washington; 23% of our workforce is associated with manufacturing compared with a statewide average of 10% for other counties. Aerospace is our primary cluster, with final aircraft assembly and a supply chain of over 200 firms. The Aerospace Convergence Innovation Partnership Zone (IPZ) is located in Snohomish County. Other aerospace “infrastructure” located here includes the Washington Aerospace Training and Research Center (Edmonds Community College), the Advanced Manufacturing Training and Education Center (Everett Community College) and the engineering programs of both the UW and WSU.

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EASC and Snohomish County have leadership positions in the aerospace industry. EASC is on the boards of the Aerospace Futures Alliance, the Pacific Northwest Aerospace Alliance (PNAA) and the Washington Aerospace Partnership. The PNAA Annual Conference is held every year in Snohomish County. The 2013 Governor’s Aerospace Conference was held here as will the 2014 conference. We are regular attendees for the Governor’s missions to airshows in Paris and London and participate in local trade shows including the Aircraft Interiors Show, the Aerospace and Defense Suppliers Summit and shows associated with the industry such as the Society for the Advancement of Materials and Process Engineering. The Bothell Biomedical Manufacturing Innovation Zone (IPZ) is located in both Snohomish and King Counties. The program to date for this IPZ has focused on medical device and has hosted the Washington State Medical Device Summit for the past seven years. There are close to 4000 jobs associated with device in Snohomish County and 8000 in the region. Medical ultrasound was developed at the University of Washington. One of the worlds’ leaders in the industry, Philips Healthcare, has their worldwide headquarters for medical ultrasound located in Snohomish County. There are 20 medical ultrasound firms located in the region; the larger of these include Sonosite (acquired by FujiFilm of Japan in 2012) and EKOS. The Zone also has firms in biopharmaceutical manufacturing including CMC Biologics, Seattle Genetics and Alder Biopharmaceuticals. A clean technology cluster is developing in Snohomish County with a specific focus on renewable energy. Our Public Utility District is developing a demonstration tidal energy project in Puget Sound. We have companies in solar energy including power inverters. A local company, based on technology developed at the Pacific Northwest National Lab, is commercializing energy storage technology based on large-scale batteries”. EASC is developing a diversification strategy for Snohomish County to broaden our economy. The strategy is tied to the competitive strengths developed around aerospace.

o The aerospace supply chain includes numerous firms with sophisticated capabilities in metal machining/fabrication/assembly. There are cross-over opportunities between aerospace and medical device.

o The Boeing 777X project will bring to Snohomish County a concentration of skills and suppliers associated with composites that have applications other than aerospace.

o Further, the 777X will bring automated manufacturing processes (robotics) to Snohomish County that have the potential to be long-term assets outside of aerospace.

With an eye towards diversification, EASC contracts with a consulting firm to represent us at six trade shows each year to develop project leads for business attraction. We also attend selected shows to walk the floors and make direct contacts with prospective firms.

• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $220,134.00 $220,133.00 $440,267.00

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• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private 792,740 821,445 1,614,185.00 Local public 253,500 253,500 507,000.00 State (ADO) 220,134 220,134 440,267.00 Higher Ed 60,000 60,000 120,000.00 Federal 243,256 268,448 511,704.00

Total Budget $1,569,630 $1,623,526 $3,193,156.00

• The ADOs impact on employment through all funding sources. EASC has a “funnel” of companies which are tracked as long-term recruitment opportunities. These company projects may be in the early stages of planning or ready for execution. As of the end of this fiscal year; the funnel includes 31 aerospace and 17 non-aerospace companies. Completed projects include the following: Boeing 777X EASC played a significant leadership role in the Boeing decision to manufacture the wing and perform final assembly of the new 777X in Everett/Snohomish County. The employment impact of this decision is 8,500 new jobs in the Puget Sound region; this includes Boeing direct employees and well as new job creation from the supply chain that is located statewide. There is also the benefit of maintaining existing jobs that would have been lost if Boeing had moved the 777X project to another US location. Scott’s Miracle-Gro EASC assisted Scott’s in establishing a new soil blending facility in Marysville. The company will source a variety of organic waste materials throughout the region and package them as soil products, which are then sold at retail in the Pacific Northwest. EASC provided introductions for permitting and material suppliers. We also introduced energy incentives provided through the Snohomish County PUD. The company has 15 full-time jobs and an equal number for seasonal employment. Modumetal By working with EASC, Modumetal was able to keep their project on schedule. This is a start-up company establishing their first manufacturing facility in the City of Snohomish (Maltby) to develop a new metal processing technology. EASC connected the company with the PUD, as there were challenges in bringing electric power to their site. The company has 7 employees at start-up and is expected to have 25 when under full operation.

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Company J (Japan - confidential) EASC assisted this aerospace company with an expansion project that could have located out-of-state. By presenting incentive programs applicable to the project and presenting options for a new facility, the company developed the justification to keep the project in Snohomish County. The company bought an existing vacant building to provide space for the operation, which has created 50 new jobs with potential for more. MTorres (Spain) The company acquired Pacifica Engineering (Bothell) the end of 2012. The company subsequently leased a new facility in Everett this fiscal year for fabrication of aerospace tooling, for which Pacifica does the engineering. MTorres has 5 employees at start-up and expects to have 20 employees when fully operational. EASC provided an introduction to the City of Everett for permitting assistance and introduced them to WorkSource to identify employment candidates. Outback Power The company manufactures electronic equipment used in renewable energy applications (solar and wind); their headquarters is in Whatcom County. They relocated into an existing 42,000 sf facility in Arlington. The new space gave the company room to expand and focus that operation on engineering and technical support. EASC assisted by identifying available buildings, introducing the PUD for expanded electrical service, and bringing in Everett Community College for customized training. Electronic Coating Technology (Canada) ECT has leased 6,000 square feet in Everett. The facility will apply protective coatings to electronic circuit boards and other sensitive electronic components. The company is working on tenant improvements and equipment installation. No job creation at this point. EASC introduced them to the City of Everett for building permits and the Puget Sound Clean Air Agency for air permits. We also identified potential new customers. Halosource Halosource, a developer of clean-water technologies, opened a pilot-scale production facility in unincorporated Snohomish County, close to their existing headquarters and research facility in Bothell. They leased and improved 24,000 square feet of manufacturing/lab space. Job creation is presently 10 but there is room for that to grow over time. EASC expedited their building permits through the county planning department. General Business Retention and Expansion Activities In addition to the companies mentioned above, EASC met with 76 Snohomish County companies during this fiscal year. These meetings were to understand their local operation, their assessment of the business climate in both the county and the state, and to identify any issues that may be hindering their continued growth. 43 of these firms received assistance from EASC as a result of those meetings. The assistance covers a range of issues; permitting, incentives, workforce and customized training, regulatory, exporting, energy efficiency, lean manufacturing, government contracting (see below) and more. In addition to the general assistance provided, EASC is also tracking 22 expansion projects in development by companies in Snohomish County.

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EASC actively supports the growth of small business through three distinct programs. Procurement Technical Assistance Center (PTAC) PTAC is a statewide program funded by the US Department of Defense. EASC has a full-time PTAC business counselor serving Snohomish, Skagit and Whatcom Counties. The counselor’s primary function is to guide small businesses in their efforts to win contracts with public sector entities at the federal, state and local level. The primary metric for PTAC is client interaction. During this fiscal year, PTAC assisted 72 small firms; 66% of these firms are categorized as Veteran, Women-owned or Small Disadvantaged/Minority-Owned business. PTAC also offered eleven classes on government procurement procedures during the year. Small Business Transportation Resource Center (SBTRC) SBTRC is similar to PTAC in concept but the objective is to assist firms secure transportation -related projects. The program is funded by the US Department of Transportation. EASC is responsible for the northwest region, including Washington, Oregon, Idaho, Montana and Alaska. The metrics are also similar to PTAC. During the fiscal year, SBTRC assisted 25 firms in Snohomish County. Small Business Development Center (SBDC) The SBDC is a program of the US Small Business Administration; the program in Snohomish County is administered by Edmonds Community College. EASC houses the SBDC and provides administrative support at no charge. SBDC counseled 192 firms during the fiscal year; 60 of these firms were start-ups. In total, SBDC provided 734 hours of counseling. Infrastructure EASC has placed emphasis during the past fiscal year on improving the economic development infrastructure within Snohomish County. Higher Education Funding – we have advocated for additional state funding to improve vocational training at the Washington Aerospace Training and Research Center (Edmonds Community College), the Advanced Manufacturing Training and Education Center (Everett Community College) and more engineering seats at both the UW Bothell campus and at the University Center of North Puget Sound operated by WSU. Transportation – EASC and the Snohomish County Committee for Improved Transportation (a private-public consortium) advocated during the past two legislative sessions for a state transportation budget to fund maintenance and construction projects needed by the business community to support the movement of people, raw materials and finished products. A transportation budget will be a priority during the 2015 legislative session.

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Greater Spokane Incorporated

Summary of Best Practices Shared and Implementation

Grantee: Greater Spokane Incorporated Grant Number: S14-75106-419 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

Note: Changes in unemployment rates require broad shifts in hiring and job creation/elimination. ADOs focus on key strategic private investments that result in high wage job creation in sectors with strong multipliers. This does not always result in great movements in unemployment numbers, which include all wage levels, not just high wage jobs.

• Current employment and economic information for the community or regional area produced by the employment security department; Spokane County unemployment rate, May 2014 6.7% Source: Washington State Employment Security Department (most recent data) For 2012, Spokane had 14,666 firms with an average wage of $41,056.

• The net change from the previous year's employment and economic information using

data produced by the employment security department; Spokane County unemployment rate:

May 2013: 7.7% May 2014: 6.7% Net change May 2013 to May 2014: -1.0% Source: Washington State Employment Security Department The number employed, according to the Nonagricultural Wage and Salary Workers in the Spokane MSA, Q1 data, rose by 3,200 from 2012 to 2013.

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• Other relevant information on the community or regional area; Greater Spokane Incorporated recruits, retains, and helps with expansion, businesses in the following industry clusters: o Aerospace o Manufacturing o Distribution & Logistics o Health Sciences o Clean Tech & Energy o IT Aerospace To promote Spokane as an ideal site for aerospace investments, Spokane County, City of Spokane, Spokane International Airport, Community Colleges of Spokane, Avista and GSI partnered on AIR Spokane, the Aerospace Initiative for Recruitment. Collateral has been created and a website is in process. Work has begun on an aerospace supply chain analysis. GSI recruited at the Paris Air Show, upcoming Farnborough Show, and the Aerospace & Defense Supplier Summit. Targeted aerospace email and mail pieces were sent to site selectors across the country. Made visits to, and provided assistance to, local aerospace companies. Health Sciences Health Sciences gap analysis completed. Partnering with HSSA, GSI has attended WBBA for the past two years and worked on recruitment. Dahl Natural was a resulting win. Met with bioscience specific site selectors and toured them in Spokane. SBIR outreach continues. Health Sciences campus continues to build out and fill with multi-disciplinary programs, research and clinics. Convened Health Industry Development Group. Manufacturing Visited and assisted a number of local manufacturing businesses. Attended MD&M for recruitment. Convened Manufacturers Roundtable. Expanded Services Several programs have merged with GSI which expand GSI’s services to local businesses. The International Trade Alliance is now Trade under GSI’s Economic Development. Similarly, Connect Northwest merged with GSI, expanding GSI’s entrepreneurial education and services. Spokane STEM has also merged, expanding the workforce and education component. Spokane numbers: o Spokane-Spokane Valley MSA now includes Stevens and Pend Oreille counties,

placing it in the top 100 MSAs nationally. o Spokane’s GDP increased from 18.7 to 20.4 from 2012 to 2013, resulting in a rise

of 4 in ranking among 365 MSAs across the nation o Spokane’s cost of living index is 95.7, below the national average. (C2ER)

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o KPMG “International Business Location Cost” for Spokane is 96.9, below average.

o Cost of doing business is 18% below national average (Moody’s Analytics) o Additional flights added from Spokane to Seattle, Atlanta, Canada and Mexico o Spokane’s downtown revitalization continues including Convention Center

expansion, new 700 room hotel by Worthy, renovation of historic buildings, proliferation of craft breweries

o Spokane County is one of six nationwide to receive the RWJF Culture of Health Prize from the Robert Wood Johnson Foundation. The Spokane Public Schools graduation rate jumped from less than 60 percent in 2006 to nearly 80 percent in 2013.

• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $181,802.00 $181,802.00 $363,604.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $ $ $ Local 319,603 300,000 619,603 State 181,802 181,802 363,604 Federal

Total Budget $501,405 $481,802 $983,207

• The ADOs impact on employment through all funding sources.

Annual reports may include the impact of the ADO on:

• Wages Spokane’s average wage increased from $39,931 in 2011 to $41,056 in 2012

• Exports – Spokane MSA exports totaled $662 million

• Tax revenue generated Local $3,185,165 ($3,101,329 recruitment + $838,236 retention and expansion) State $2,661,957 ($6,562,713 recruitment + $2,005,684 retention and expansion)

• Capital investment $123,875,000

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• Business relocations 5 companies, 219 jobs, $85,736,999 annual economic impact

o CarMax A Fortune 500 company and one of Fortune Magazine’s “Best Companies to Work For.” GSI assisted in the property search and some zoning issues.

o Dahl Natural Developer of a real-time, low-cost pesticide monitoring device. Partnering with HSSA, GSI hosted the initial visit and assisted with incentives, property search, and introductions

o Chalk Labs Provider of advanced analytical solutions for big data, national health related contracts. GSI supplied information on funding, property, incentives and wages.

o Exotic Metals Forming Company A leader in state-of-the-art, high-temperature, high-strength sheet metal designs and fabrications for the aerospace industry, Project Exotic began in 2007 when the company reached out to GSI. GSI showed them sites, but they ended up expanding where they were, in Kent. When they needed to expand again, in 2012, efforts were refocused on Spokane. During the recruitment process, GSI staff assisted the company with community and site tours, workforce availability and funded training programs, municipal and utility contacts, and connections to local manufacturers. In addition, GSI advocated for Governor’s Strategic Reserve Funds used by Exotic Metals for pre-planning and site readiness.

o My Place Hotels Economy, extended stay hotel chain headquartered in Aberdeen, South Dakota is expanding their presence in the northwest. They came to GSI for site location assistance. Building in Spokane Valley and considering additional sites.

• Expansions 5 businesses: 381 jobs, $83,575,000 annual economic impact

o Associated Painters Building a second aircraft-painting hangar for narrow body, Boeing planes. Located at SIA

o Providence Health Care GSI assisted Providence on traffic mitigation issues with the new Medical Park in Spokane Valley

o Odom Corporation GSI assisted Odom with information on the warehouse incentive for construction of their new warehouse on the West Plains

o Minapsys A software group with an online platform for group collaboration. GSI provided cost comparisons, property, and introductions.

o West Corporation GSI met with West’s client to share information on Spokane’s workforce and business competition, helping them win new concierge level service contract with a global client.

• Terminations Vivint

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• Prospects in the pipeline by industry 1 Lead Level 1 (IT) 4 Lead Level 2 (2 aerospace, 2 other) 109 Lead Level 3 (32 Health Sciences, 15 Aerospace, 15 Clean Tech & Energy, 11 Manufacturing, 11 Professional Services, 7 IT, 5 Adv. Manufacturing, 2 Retail, 2 Distribution & Logistics, 9 Other/Unknown)

• New Entrepreneurial Services GSI is offering new educational and networking programs for entrepreneurs and managing Share Space Spokane, flexible office rental and collaboration space

• Government Contracting Services 37 workshops on Government Contracting offered; 101 new clients came in for one-on-one counseling sessions

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Tri County Economic Development District – Stevens & Ferry Counties

Summary of Best Practices Shared and Implementation

Grantee: Tri County Economic Development District, Stevens, Ferry Counties Grant Number: S14-75106-438 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

May 2014 Unemployment rates: Stevens County – 9.2% Ferry County – 10.3%

• The net change from the previous year's employment and economic information using

data produced by the employment security department; May 2013 Unemployment rates: Stevens County – 10.6% Net decrease of 1.4% Ferry County – 11.5% Net decrease of 1.2%

• Other relevant information on the community or regional area; We are facing some difficult times next year in Ferry County. Kinross Gold Corporation, the largest employer in the County, decided to terminate the NEPA EIS process relating to proposed exploration of public lands around the Buckhorn mine. This is a huge loss for the community as the current mining operations are scheduled to terminate in the spring of 2015. We are working with Kinross on their exit strategy and providing assistance to the local businesses to “lessen the blow”. Stevens and Ferry Counties continue to be listed as Historically Underutilized Business (HUB) zones and it is anticipated they will maintain that designation for the foreseeable future. Stevens County (with Pend Oreille County) was added to the Spokane Metropolitan Statistical Area (MSA) at the beginning of 2014. We have yet do determine the full effect this will have to our area.

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• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Ferry County $32,609.00 $32,609.00 $65,218.00 Stevens County $46,175.00 $46,174.00 $92,349.00 Commerce Funds Awarded $78,784.00 $78,783.00 $157,567.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14

FY 15 (estimated) Total

Donations, Key Bank, Kinross Private $12,000 $10,000 $22,000

Member Dues and extra support Local $37,278 $38,000 $75,278

WSDOT State $75,257 $75,257 $150,514 EDA, RBEG Grant Federal $85,542 $60,000 $145,542

Revolving Loan Fund and Incubator Other $445,575 $440,000 $995,575 Total Budget $655,652 $623,257 $1,278,909

The funding that TEDD receives is tied to specific funding sources scopes of work. For example, the funds from WSDOT and the EDA are for District planning purposes in transportation and regional economic development only. Member dues are used as the required match for the EDA grant and are limited to planning purposes only. The Kinross donation was project specific to a Ferry County activity. The Loan Fund revenue is from interest and fees collected from outstanding loans and can only be used for expenses incurred by the Loan fund. Any funds received during a calendar year not spent on approved expenses become lendable funds at the end of the year and are no longer available for expenses purposes. We try to leverage any funding we receive to improve the economic environment in Northeast Washington.

• The ADOs impact on employment through all funding sources. Tri County Economic Development District (TEDD) held a small business seminar series in the fall of 2013. The seminars conducted were business plans, business accounting, business legal, and business marketing. Seven businesses from the two counties attended the series and two new businesses were created with whom we continue to work with. We also conducted 3 separate Social Media workshops with a total of 63 participants. Both of these programs were very well received with high ratings from the participants for both the content and the presenters. TEDD received a Rural Development RBEG grant in the fall of 2013 to create a small business resource center at the TEDD offices in Colville. Access to high speed internet is a pressing need for the two counties. Residents living in unincorporated areas are limited to line-of-sight or satellite internet services. The $25,542 grant helped finance a center to which small business owners from the District can access high speed internet via the fiber recently

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installed by NoaNet. The center offers free use of the computers or access with their own device with limited printing and scanning. The center also offers virtual video conferencing services. The center has already been used for training by the Stevens County WSU extension and has provided conferencing for local businesses and groups. To date, 135 business uses have been recorded and awareness of the business services offered by TEDD has increased dramatically. TEDD continues to conduct outreach to small businesses in the two counties by attending Chambers of Commerce meetings, participating in town hall meetings and local events. TEDD helps local governments and non profits by providing data and planning services in Transportation and Economic Development as per the scopes of work required by the EDA and WSDOT. TEDD’s Rural Development Loan Fund works with local businesses that are unable to secure financing from conventional sources. Over the course of the last year, $581,500.00 was loaned to 7 businesses in Stevens and Ferry counties resulting in the retention of 14.5 full time jobs and the creation of 7 new full time jobs. TEDD counsels the businesses who have obtained financing as well as those applying for a loan. The small business incubator currently leases warehouse and office space to 8 small businesses that are unable to acquire suitable facilities elsewhere. The space can be leased at a scaled rate which is gradually increased to market rates over the first 5-8 years. Business assistance and counseling are available to the tenants with the intent to help them gain stability enabling them to either purchase a facility or lease space from a private landlord.

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Thurston County Economic Development Council

Summary of Best Practices Shared and Implementation

Grantee: Thurston County Economic Development Council Grant Number: S14-75106-437 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

The above chart (WA Employment Security website 07/01/14) identifies employment levels for Thurston County for the years 2012, 2013 and through 05/2014. From July 1, 2013 through May 31, 2014, overall Thurston County non-farm industry employment increased by a little over 1% -- a positive gain of 1,100. • The net change from the previous year's employment and economic information using

data produced by the employment security department;

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The above chart (WA State Employment Security website, 07/01/14) provides the unemployment rate for Thurston County for the years 2012, 2013, and through 05/2014. It is noted that the Thurston County unemployment rate was reduced by approximately 12% from June 2013 through May 2014 (from 7.2% to 6.3%).

• Other relevant information on the community or regional area;

The above chart (WA State Employment Security, 7/1/14) provides a quick snapshot of the employment levels for the major categories of employment and economic sectors.

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• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $97,323.00 $97,323.00 $194,646.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15* Total

Private 191,017.92 191,017.92 382,035.84 Local 687,900.00 687,900.00 1,375,800.00 State 130,046.03 130,046.03 260,092.06 Federal 940,871.83 940,871.83 1,881,743.66

Total Budget $1,949,835.78 $1,949,835.78 $3,899,671.56

• The ADOs impact on employment through all funding sources. The Thurston EDC has, in collaboration with the Pacific Mountain Workforce Development Council and the four other economic development councils (ADOs) that comprise the WDC region (the counties of Pacific, Lewis, Grays Harbor, and Mason), has completed a comprehensive commercial and industrial economic cluster analysis for the region. The study completed the year prior, has allowed the Thurston EDC to create a work plan that focuses efforts around supporting, growing and retaining the five major clusters of the region and the county. These clusters – IT’/Telecom, Food Manufacturing, Plastics & Chemical Manufacturing, Life Sciences, and Wood Manufacturing – represent the major components of the county’s economy. Additionally, the EDC has identified the strong linkages, supported by data analysis, has begun the development of a strategy that supports these linkages and pipelines between sectors – or boundary spanning strategies. The chart provided is a graphic representation of this cluster analysis and boundary spanning work endeavored by the region. This organization, as a result of the analysis has instituted specific recruitment strategies that pursue development within the linkages as well as the major cluster themselves. This past year the EDC had a presence at 6 major trade shows – these being in the categories of major retail, technology

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based manufacturing, food processing, life sciences and bio-medical device manufacturing, and wood manufacturing. The Thurston EDC is the state’s main center for the Procurement Technical Assistance Program (PTAC). During the time span of July 1, 2013 and June 30, 2014, the EDC through its staff (not sub-center staff located in other regions of the state) provided nearly 550 hours of individual technical assistance and counseling – maintaining over 285 separate clients in the system. These clients, and not inclusive of the statewide clients served by the eight other sub-centers in the system, were awarded $22,243,265 in new contracts directly attributed to the technical assistance provided by the EDC’s staff. These contracts impacted nearly 450 full time equivalent jobs in the region. The Thurston EDC, continues to provide strong technical assistance to entrepreneurs located throughout the region – either directly through our Business Resource Center, or through our Washington Center for Women in Business program. Collectively, through these programs, the EDC staff provided over 58 separate trainings specific to entrepreneurs, and facilitated over 2000 hours of technical assistance and counseling to individuals seeking assistance in the following categories:

1. Basic business startup 2. Marketing assistance – and social media utilization 3. Funding 4. Cash flow 5. Market assessment 6. Workforce and personnel management 7. Legal elements to running a business 8. Business succession and transitional elements of ownership 9. Energy efficiency

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Wahkiakum Chamber of Commerce

Summary of Best Practices Shared and Implementation

Grantee: Wahkiakum Chamber of Commerce Grant Number: S14-75106-427 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

Wahkiakum County Unemployment Rate: June 2014: 9.4 Source: Washington State Employment Security Department (Most Recent Date Available Is June 2014)

• The net change from the previous year's employment and economic information using

data produced by the employment security department;

Wahkiakum County Unemployment Rate: June 2013: 10.9 June 2014: 9.4 Net Change June 2013- June 2014: -1.5% Source: Washington State Employment Security Department (Most Recent Data Available Is June 2014)

• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $30,960.00 $30,960.00 $61,920.00

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• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private Local $8000.00 8000.00

State

Federal

Total Budget $8000.00 $8000.00 $

• The ADOs impact on employment through all funding sources.

2013 – Current- Major Business Recruitment and Retention Activity New Business Start Up River Life INC. Adult Family Home/ Assisted Living Jobs Created or Retained: 10 Project description: Local residence started up an adult family home. We have been working with the couple for 7 months. The Chamber of Commerce assisted with a business plan, locating appropriate funding, networking and working with existing government health programs to get the new company up and running, building plans, and advertising and marketing. Client would not give up project projected annual sales. Expansion Oasis Mexican Bar and Grill Restaurant Jobs Created or Retained: 4 Project description: Expanded small tavern in Wahkiakum County into a small Mexican food restaurant. The Chamber of Commerce provided low interest loan for restaurant equipment. Client would not give up project annual sales.

Recruitment/Expansion, Start up Main Street Co-Op Merchants on Main Street Co-Op Jobs Created or Retained: 0 Project description: Wahkiakum Chamber of Commerce is in the process of creating a Main Street Co-Op. For the last year there has been multiple open (not in use) store fronts. The chamber of commerce has decided to rent a main street store front for two reasons. First reason being that we will use the back section for heated storage for all

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chamber of commerce and EDC file and equipment. Secondly we are creating a local small business Co-Op in the front of the main street business. We are in the process of collaborating with the local merchant committee to set up business application for the Main Street Co-Op. We are hoping to bring in 3-4 businesses that way this will create an open storefront. Process has just begun. Retention/Expansion Big Red Barn Antique/Pet Grooming Jobs Created or Retained: 4 Project Description: Big Red Barn Antique Business came to us in the inter season with fears of closing down because of winters being too hard economically. We created a business plan with them and directed them to appropriate funding for expansion on the existing business for dog grooming station/facilities. We have done 100% of advertising and marketing, social networking and website development. At the two month mark of the business expansion profits had increased 65% due the expansion and all the hard work done here in our office. The business is not only surviving but flourishing in the off season. Business has decided to continue with antique sales and dog grooming into the summer season.

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Port of Walla Walla

Summary of Best Practices Shared and Implementation

Grantee: Port of Walla Walla

Grant Number: S14-75106-440 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

Based on May 2014 not seasonally adjusted data from WA Employment Security Department, Walla Walla County labor force statistics for May 2014 was 29,250 in the labor force. Based on May 2014 not seasonally adjusted data from WA Employment Security Department, Walla Walla County employment statistics for May 2014 was 27,540 employed. Based on May 2014 not seasonally adjusted data from WA Employment Security Department, Walla Walla County unemployed statistics for May 2014 was 1,710, unemployed. Based on May 2014 not seasonally adjusted data from WA Employment Security Department, Walla Walla County unemployment rate for May 2014 was 5.9%.

• The net change from the previous year's employment and economic information using data produced by the employment security department;

Based on May 2014 not seasonally adjusted data from WA Employment Security Department, Walla Walla County labor force statistics from May 2013 to May 2014 declined from 29,490 to 29,250, a reduction of 240 people in the labor force. Based on May 2014 not seasonally adjusted data from WA Employment Security Department, Walla Walla County employment statistics from May 2013 to May 2014 grew from 27,420 to 27,540, an increase of 120 people employed. Based on May 2014 not seasonally adjusted data from WA Employment Security Department, Walla Walla County unemployed statistics from May 2013 to May 2014 declined from 2,070 to 1,710, a decrease of 360 less people unemployed.

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Based on May 2014 not seasonally adjusted data from WA Employment Security Department, Walla Walla County unemployment rate from May 2013 to May 2014 declined from 7.0% to 5.9%, a decrease of 1.1% in unemployment rate.

• Other relevant information on the community or regional area;

Please see attached Port of Walla Walla 2013 Economic Development Results • The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $52,966.00 $52,965.00 $105,931.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $ $ $ Local - Port $23,614.00 $23,613.00 $47,227.00 State $52,966.00 $52,965.00 $105,931.00 Federal

Total Budget $76,580.00 $76,578.00 $153,158.00

• The ADOs impact on employment through all funding sources.

Please see attached Port of Walla Walla 2013 Economic Development Results

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PORT OF WALLA WALLA

2013 Economic Development Plan

Results

JANUARY 2014

Port of Walla Walla 310 A Street

Walla Walla, WA 99362 (509) 525-3100

www.portwallawalla.com

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2013 Economic Development Plan Results A. Small Business Development

• Port commits to an annual contribution of $10,000 to assist in the re-establishment of a Walla Walla Small Business Development Center.

• Port maintains Walla Walla Small Business Tools website to assist small business in startups that want web based information and support for growing their business. It is customized for each area with local, state, and federal information, spanish translation, and other business resources. Over 120 monthly hits on the website. http://wallawalla.toolsforbusiness.info/

• Port continues to redevelop the Dell Avenue Small Shop buildings into work space for local artists and small business at a cost of approximately $100,000. The buildings have been leased to local artists and small businesses.

• SBDC 2013 Numbers: Served over 89 clients and currently assisting 31 clients actively. Of these clients, 36 were existing local businesses and 24 more started new businesses or took a part

time endeavor to a brick and mortar operation. Delivered 901 counseling hours, 46 class room training hours in four counties, spent a little over 80

hours traveling and managed to log over 48 hours of continuing education with the balance of my time spent on research and reporting.

Dividends to the community have resulted in $1,438,200 in business loans and owner investment resulting in 24 new jobs created and 9 jobs saved.

Presently the SBDC has four clients with four loans in progress. One for $335,000, one for $215,000 and one $50,000 line of credit.

B. Existing Business Retention/Expansion 1. Number of businesses visited: 34

1. Alaska Air 2. Cott/Cliffstar Corporation 3. Tyson Fresh Meats 4. Boise Inc. 5. Washington State Penitentiary 6. Walla Walla Foundry 7. Reiff Manufacturing 8. The Odom Corporation 9. Tate Transportation, Inc. 10. Martin Archery 11. Blaze King Industries 12. Railex 13. Chateau Ste. Michelle 14. Frontier Railroad 15. Cargill Louis Dreyfus 16. Northwest Grain Growers 17. Northwest Library Bindery 18. Harry Johnson Excavation 19. Wilbur Ellis Company 20. McGregor Company 21. Artifex Wine Company 22. Northstar Winery 23. Pacific Power 24. Columbia REA 25. Simplot Land & Livestock

26. Precept Wine Brands 27. Tamarack Cellars 28. Harris Rebar 29. Le Chateau Winery 30. Frontier Transportation 31. TransCanada 32. Schnitzer Steel 33. Matthews Casket Company 34. Other Various Airport Businesses

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Martin Archery

• Port purchased Martin Archery property for $1.3 million and leases it to Martin Sports Inc. in an effort to save jobs and retain bow manufacturing operations in the Walla Walla Valley. In the September 28th Walla Walla Union Bulletin Editorial they stated “Losing an employer that provides study employment is simply bad for the community. The Port made the right move to help keep Martin Archery in business here”.

Alaska Air • In an effort to maintain commercial air service and help Alaska Air with

breakeven/profitability in the Walla Walla market the Airport eliminated ARFF reimbursement costs and reduced rent and landing fees by 50%. Cost savings to Alaska Air for 2013 is approximately $82,000.

• The Port applied for and received a Small Community Air Service Development Grant for $300,000 to develop a 2-year strategic marketing and advertising campaign to promote increased utilization of the Walla Walla Regional Airport. Funding sources: $250,000 from the USDOT and $50,000 Port Contribution.

Washington State Penitentiary • Port continues to take the leadership role in the Washington State Penitentiary

Taskforce for the retention of jobs at the Washington State Penitentiary. • Continued funding a lobbyist to represent the Walla Walla community during the

2013 legislative session concerning the Washington State Penitentiary. Money was allocated in the state operating budget to open one of the two new medium security units (256 beds) at the Penitentiary as of July 1, 2013. Without the Washington State Penitentiary Taskforce efforts both new medium security units could have been placed in stand by status until July 1, 2015.

As part of the Port’s role in business retention, and in consideration of the challenging economic conditions, the Port Commission has provided several Port and Airport tenants with lease rate reductions to their lease agreements.

2. Business Profiles at Bi-Monthly EDAC Meetings

1. January 2013 • Presentation - Superintendent Mick Miller- Walla Walla Public Schools –

Walla Walla High School Bond • Presentation – Tom Glover, Director, Walla Walla Joint Community

Development Agency – Review of the Walla Walla Valley Metropolitan Planning Organization (MPO)

2. March 2013 • Presentation - Brad Shafer, Plant Manager, Tyson Fresh Meats

3. May 2013 • Presentation - Doug Simcock, Windermere Real Estate, Walla Walla County

Housing Market 4. July 2013

• Presentation – Roger Bairstow, Broetje Orchards, Director of Corporate Responsibility

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5. September 2013 • Presentation – Nabiel Shawa, City Manager – Update on Blue Mountain Mall • Presentation - Jennifer Skoglund, Airport Manager, Walla Walla Regional

Airport’s Art Project 6. November 2013

• Presentation – Jock Edwards – Sherwood Trust - “501 Commons: Technology Program for Nonprofits”

• Presentation – Dr. Patrick Jones, Eastern Washington University - Walla Walla Trends Update

3. Number of local businesses opening (O) and/or expanding (E)

1. Railex Wine Warehouse O Dodd Road - Walla Walla County

2. Palencia Wine Company Winery - Incubator O WW Regional Airport

3. Burwood Brewing Company Brewery - Incubator O WW Regional Airport

4. Brushes N Brix Company Wine & Painting O WW Regional Airport

5. Chris Johnson Plumbing Plumbing E WW Regional Airport

6. Dunham Cellars Winery E WW Regional Airport

7. East-Automation PLC Contractor O Dell Avenue Shop Buildings

Note: This list is not inclusive to all the businesses opening and/or expanding in the cities of Walla Walla, College Place, Waitsburg, Prescott and other incorporated areas of the County.

4. Business Downsizing/Closures 1. Martin Archery Downsizing - 2013 30 FTE

Jobs 2. Northwest Library Bindery Closure – 2013 20 FTE

Jobs 3. Hastings Closure – 2013 20 FTE

& PTE Jobs 4. Gilbert Auto Group Closure – 2013 25

Estimate

Note: This list is not inclusive to all the businesses downsizing or closing in the cities of Walla Walla, College Place, Waitsburg, Prescott and other incorporated areas of the County.

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C. BUSINESS RECRUITMENT, MARKETING & ADVERTISING 1. Number of qualified business leads obtained:

WA - Department of Commerce 10 qualified leads Private 12 qualified leads Trade Show 2 qualified leads Total 24 qualified leads

2. Number of qualified business visitations: 11

1. February 2, 2013 Project Apollo 2- Apple Sauce MFG 2. March 5, 2013 Project Apollo 2- Apple Sauce MFG 3. March 6, 2013 Project Onion – Onion Processing 4. March 20, 2013 Project Potato – Food Processing 5. April 3, 20313 Project Pipe - PVC MFG 6. June 3, 2013 Project Buckwheat – Buckwheat FG 7. August 12, 2013 Project 78 – Heavy MFG 8. August 16, 2013 King Estates - Winery 9. September 19, 2013 Project Jones – Food Processors 10. September 25, 2013 Project Midlands – Railcar

Maintenance Operation 11. October 31, 2013 Project Grain

• Port successfully assisted Railex in the development in a new 500,000 SQFT wine storage

and distribution warehouse at the Dodd Road Industrial Park which opened in February 2013. Port funded the connector road between Railex Road and the wine distribution warehouse at a cost of $540,000. To date, approximately 35 new full-time jobs have been created and property taxes of $320,000 will be paid annual as the result of the project.

• Port continues its involvement in the Walla Walla Valley Chamber of Commerce Air Coalition Group. Passenger enplanements at the Walla Walla Regional Airport increased by 3.8% in 2013. Total passenger enplanements in 2013 were 33,050 compared to 2012 of 31,825.

• Port attended three trade shows in 2013: International Council of Shopping Centers Las Vegas, NV May 19-22,

2013 Produce Marketing Association Fresh Summit New Orleans October 18-

20, 2012 Private Label Trade Show Chicago, IL November

17-19, 2013 The Port in a cooperative venture invited and helped pay for the City of Walla

Walla, City of College Place and County of Walla Walla representatives to attend the International Council of Shopping Centers.

• Advertised in the National Economic Development Directory at www.ecodevdirectory.com. • Advertised in the Washington State Department of Commerce’s new “Choose Washington”

publication that will be circulated nationwide to national site selector agencies and Fortune 500 companies.

• Continued to input and update available industrial buildings and sites in the following real estate websites. These websites have databases of available buildings and sites and are

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• focused primarily toward national site selectors (Colliers International, Deloitte Consulting, Global Location Strategies, etc...) database. Area Development – Fast Facility www.fastfacility.com CoStar www.costar.com

• Updated and maintained Port’s homepage www.portwallawalla.com • Washington State Department of Commerce, national site selectors, and real estate

advisors were satisfied with the Port’s comprehensive business expansion/relocation proposals and other collateral materials.

• Washington State Department of Commerce satisfied with the Port’s quarterly EDC reports and the Economic Development Advisory Committee meetings, format and its public participation effort.

• Contributed $15,000 to the Walla Walla Valley Wine Alliance for Celebrate Walla Walla Event.

• Contributed $8,000 match requirement to the Walla Walla Valley Chamber of Commerce for a Washington State Broadband grant of $80,000.

• Contributed $5,000 to Walla Walla Valley Chamber of Commerce to help sponsor the Walla Walla Business Summit.

• Contributed to the following tourism projects conditioned on the money being used to attract out-of-county visitors to Walla Walla County: $2,000 Kirkman House Museum $1,500 Walla Walla Sweet Onion Festival $1,000 Walla Walla Quilt Festival $750 Walla Walla Dance Festival

• Maintained “Existing Inventory List” of ready to go buildings and sites in Walla Walla County.

D. Site & Infrastructure Development

• U.S. Highway 12 Coalition continues its leadership role on four laning U.S. Highway 12.

• Burbank Business Park: All necessary permits and easements for the sewer pipeline project with the City of

Pasco were secured. Secured $3.0 million in the state capital budget to connect the Columbia School

District schools to the Port’s sewer transmission system. Awarded the Snake River sewer transmission line construction project to Apex

Directional Drilling and established an overall budget at $2,100,000. Entered into an agreement with the Columbia School District that outlines the terms

and conditions of the Port providing sewer transmission services. Issued a Request for Qualifications seeking developers for the retail areas designated

within the Ports Burbank Business Park. Worked cooperatively with the Chevron Pipeline Company to remove abandoned gas

pipelines from the Port’s Burbank Business Park. Port made a financial contribution of $33,705.

Completed road repairs to the Ports Grain Terminal Road at a cost of $87,200. Repairs also included reconstructing the entrance into Harris Rebar at a cost of $21,270.

Took a leadership role in seeking the renaming of the US Highway 12 & State Route 124 interchange in Burbank after the late Walla Walla County Deputy Sherriff

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Michael Estes. The Washington State Transportation approved the renaming of the interchange on December 10, 2013.

• Dodd Road Industrial Park: Port obtained several grants and loans to improve roads, rail and the water system

associated with the Dodd Road and Wallula Gap Business Parks in connection with the Railex expansion. o $2,750,000 State Appropriation o $ 400,000 CERB Grants o $ 400,000 Economic Development Sales Tax Grant o $ 750,000 WSDOT Rail Grant o $ 250,000 WSDOT Rail Loan o $ 310,000 STP Grant

Worked in cooperation with Walla Walla County Public Works department to complete the road extension of Railex Road to Raindance Road. Port made a $598,878 contribution through grants it received for the project.

Plans and specifications were prepared, Request for Proposal were issued, and construction bids awarded for the rail and water improvements and said infrastructure improvements will be completed by June 30, 2014.

Developed a comprehensive water system plan for the Dodd Road/Wallula Gap water system. Plans were submitted and approved by the Washington State Department of Health for approval.

• Waitsburg Business Park Completed the infrastructure improvements at the Waitsburg Business Park. Port

Commission authorized the construction of an access road and utility infrastructure at a cost of $420,000.

• Walla Walla Regional Airport Commenced and completed the 3rd Phase of the general aviation ramp rehabilitation

project at the Walla Walla Regional Airport at a cost of $4,135,492. Completed the construction of 40 new parking stalls at the Walla Walla Regional

Airport Terminal parking lot at a cost of $143,000. Airport Art Committee commissioned artist Koryn Rolstad from Seattle for the

“Illuminated Gateway Arbors” sculptures that will be placed at the terminal aviation entry and the industrial park entry. The Washington State Arts Commission will own the art work and will be paid for with money from the state funded construction project at the Walla Walla Penitentiary at ½ of 1% of state money. Approximately $140,000 is available for public art.

Walla Walla Regional Airport Wine Incubator Buildings: Cavu Cellars graduated out of the wine incubator program and moved their winery operation to another building at the Walla Walla Regional Airport.

Entered into an agreement with Walla Walla County Public Works to chip seal Curtis and Cessna Avenues at a cost of $44,587.

• Dell Avenue Warehouse District Removed two dilapidated houses on Dell Avenue (1121 & 1125) at a cost of $14,700.

• Other Jonathan M. Wainwright Memorial VA Medical Center in Walla Walla completed

construction of a new $71.4 million outpatient clinic for Walla Walla area veterans. Entered into state governmental affairs contract with JDM, LLC. Port Commission

subsequently agreed to enter into a year around contract for state governmental

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affairs with JDM, LLC. The Port was able to form a partnership with the City of Walla Walla and the City of College Place to be part of the new revised contract.

• County of Walla Walla 2013 infrastructure projects: Russell Creek Road $1.4 million Prospect Road Phase 2 $720,000 Railex $870,000 Reser Road $350,000 JB George Road $450,000

• City of College Place 2013 infrastructure projects: College Avenue Rose Reconstruction (CARS) Project $12M

(Project will begin in 2014 and be completed in the Fall of 2015) Davis Avenue Overlay Project $180K

(Completed) 9th and Cedar Street Water Project $150K

(Design has been started, with construction in 2014) Myra /The Dalles Military Road/12th (joint project with City of WW) $2.8

M(Completed) • City of Walla Walla 2013 infrastructure projects: Myra Road – SR125 to Garrison Creek Project (joint project with City of College

Place) Rose Street 2013 - Transportation Benefit District) Project 13th Avenue Project Orchard Street Project Pleasant-Home-Fern-Statesman IRRP Project Note: Infrastructure Repair and Replacement Projects (IRRP) are projects that replace all 3 failed systems, street, water and sewer.

• City of Waitsburg 2013 infrastructure projects: W. 7th Street reconstruction project at a final cost of about $1,000,000.

E. Economic Profile

• Port renewed Eastern Washington University’s contract to keep Walla Walla Trends updated and to provide a quarterly e-newsletter at a cost of $18,000.

• Updated and maintained the comprehensive economic profile of Walla Walla County. High utilization rate by the government agencies, community organizations, businesses, and site selectors.

• Assisted a host of public and private businesses with specific economic profile requests. • Track the .09% Economic Development Sales Tax Fund for economic development projects. • Posted EDAC meeting handouts on the Port’s website. • Developed a stronger social media presence with the activation of a Port of Walla Walla

Facebook site with regular updates and is linked to Port’s existing website. F. Economic Development Advocacy

• Economic Development Advisory Committee meetings continue to be well attended. EDAC agendas and meeting handouts are posted on the Port’s website.

• Port continued its participation in the Washington Association of Economic Development Councils, Washington Public Ports Association, Pacific Northwest Waterways Association and Good Roads Association.

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• Published the Port’s annual newsletter. Newsletter distributed as a supplement to the Walla Walla Union-Bulletin newspaper and by direct mail to Burbank.

• Published four guest editorials in the Walla Walla Union Bulletin newspaper regarding economic development, transportation, and business development.

• Revised criteria for funding of the Port’s Economic Development Sales Tax Fund and obtained County of Walla Walla Commissioner concurrence. Also updated Appendix G of the Walla Walla County Comprehensive Plan regarding public infrastructure projects eligible for Economic Development Sales Tax Funds.

• Community bus tour of Port/Airport properties was held in October 2013.Held a community meeting in Burbank on October 10th. As a result of community input a follow up meeting was held on Dec 9th with WSDOT to discuss community transportation concerns.

• Commenced with developing a closer working relationship with the Prescott community. At the request of the Port, the Prescott community developed a priority list of improvement projects. The Port has commenced with working on water right issues and held a meeting on December 9th with WSDOT to talk about transportation issues.

• Held first ever Port of Walla Walla & Port of Seattle Commission meeting on June 13, 2013. Port of Walla Walla was recognized as having a model program for measuring “Return on Investment”. Port of Walla Walla also considered as having a very progressive industrial lands policy.

• Spoke to the local talk radio programs on economic development issues. • Participated in several public/private committees and coalitions such as the U.S. Highway

12 Coalition, Washington State Penitentiary Taskforce, Walla Walla Watershed Management Partnership Board, Washington Good Roads Association, Walla Walla Valley Metropolitan Planning Organization (MPO), Regional Transportation Planning Organization (RTPO), Mill Creek Coalition Walla Walla WorkSource Employer Committee, Walla Walla Community College - General Workforce Advisory Committee, and others.

• Port was the Day Leader for Leadership Walla Walla day devoted to “Business, Agriculture & Economic Development” October 2013.

• Spoke to over 25 organizations concerning the Valley’s economic development effort.

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Port of Bellingham – Whatcom County

Summary of Best Practices Shared and Implementation

Grantee: Port of Bellingham – Whatcom County Grant Number: S14-75106-409 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

NOTE: CHANGES IN UNEMPLOYMENT RATES REQUIRE BROAD SHIFTS IN HIRING AND JOB CREATION/ELIMINATION. ADO’s FOCUS ON KEY STRATEGIC PRIVATE INVESTMENTS THAT RESULT IN HIGH WAGE JOB CREATION IN SECTORS WITH STRONG MULTIPLIERS. THIS DOES NOT ALWAYS RESULT IN GREAT MOVEMENTS IN UNEMPLOYMENT NUMBERS – WHICH INCLUDE ALL WAGE LEVELS – NOT JUST HIGH WAGE JOBS.

• Current employment and economic information for the community or regional area produced by the employment security department;

Whatcom County Unemployment Rate May 2014:6.2% Source: Washington State Employment Security Department (most recent data available is May 2014)

• The net change from the previous year's employment and economic information using data produced by the employment security department;

Whatcom County Unemployment Rate May 2014:6.2% May 2013:7.0% Net Change May 2013-May 2014: -0.8% Source: Washington State Employment Security Department (most recent data available is May 2014)

• Other relevant information on the community or regional area;

Canadian Recruitment: 1. Location – Whatcom County’s border with Canada and proximity to the major population

center that makes up the Lower Mainland of British Columbia gives us a

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2. great opportunity to bring Canadian Companies to Whatcom County vis a vis other counties in the State.

3. Growth Opportunity/Market Size – Canadian domestic market is approximately 30 million people, US domestic market is approximately 300 million people.

4. Convenience – Company can retain Canadian presence, Headquarters, Homes, Schools, Etc. in Canada while operating a US based branch of the business.

5. Market Accessibility – Goods manufactured in Whatcom County gain “made in USA” Certification.

a. Benefit when marketing to US customers. b. Products would be eligible for contracts that require “Made in USA” certification.

6. Savings – Potential large savings by no longer needing to go through Process of Exporting goods at the border.

Canadian Focused Trade Shows: Thus far in 2014 the Whatcom County ADO either participated with a booth or attended the following Trade Shows located in Vancouver, British Columbia:

Vancouver Boat Show – worked booth in partnership with the Port of Bellingham Maritime and Real Estate Divisions.

Cargo Logistics Canada – Walked trade show floor. GLOBE 2014 – Funded and staffed “Bellingham-Gateway to USA” trade show booth.

*Cross Border Expo – Trade show held at Silver Reef Casino in Ferndale Washington. Target audience was Canadian Businesses looking to expand into Whatcom County.

Examples of Canadian Firms with a Whatcom County Presence: Nature’s Path – 150 employees IMW – 14 employees (Opened US facility to qualify for US Gov’t Contracts)

Lister Chain and Forge – 28 employees (Large portion of business is US Gov’t Contracts)

Nylatech Inc. – 22 employees Sauder Mouldings Inc. – 100 employees Hertco Kitchens – 65 employees

Omega Nutrition – 26 employees

Best Practices 1. Site Visits - Over the past two years we met with and toured over 125 companies, primarily in the manufacturing sector, here in Whatcom County. Each visit is educational to both the business and us. We are able to gain firsthand information about the successes and challenges unique to each company. We also are able to bring in resources to assist in any expansion plans a firm might have. Larger issues that span different sectors have been identified. One example of this is working with partner agencies to do a better job educating and informing high school students about the employment opportunities that exist in the manufacturing and trades occupations.

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2. Practitioners Meetings – Once a month groups involved in Whatcom County economic and community development get together for lunch where updates are given about what each group has been involved in. Ideas are shared about potential collaborations going forward that would provide benefits to the region. Discussions are currently ongoing regarding National Manufacturers Day this coming October. 3. Lead Sharing. We work with our local Commercial Real Estate Broker Community, land owners, and developers to vet all recruitment/expansion leads that come through our office. When we receive an inquiry for a building and/or property, while maintaining confidentiality of the client, we repackage the request and forward it on to folks who have opted in to receive this information. Currently we have 56 people on this email list and are confident that each RFI we receive gets in front of the people that represent the available buildings and properties here in the county. If someone has an appropriate site, they forward the specifics back to our office where we then forward the responses on to the agency requesting the information. 4. Connecting entrepreneurs with experts. We work closely with our local manufacturing community to assist entrepreneurs. Another benefit from the site visits; we maintain an email list/database of companies visited and what they specialize in. When the Northwest Innovation Resource Center has a client/entrepreneur with a specific need, i.e. knowledge of a process, material, etc. they contact us. We then reach out to the appropriate companies asking if they would be willing to spend some time with the client and help get their questions answered. This sharing of knowledge is a great benefit as it helps the entrepreneur determine fairly quickly how commercially viable their product is or what changes to the product/process will help get them there.

• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $ 104,069.00 $104,069.00 $208,138.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $ $ $ Local $139,448.20 State $104,069.00 Federal

Total Budget $243,517.20 $ $

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• The ADOs impact on employment through all funding sources. Recruitment/Retention/Expansion Activities Recruitment:

We are monitoring 20 recruitment projects that have already received some information and or assistance from us.

Retention/Expansion:

• Working with 8 companies’ on potential expansion projects. • The Whatcom County ADO administers an Economic Development Administration

Revolving Loan Fund (RLF). Since the program’s inception in 1988, the fund has loaned out $1,805,409.00 leveraging an additional $8,144,985 for a total of $9,950,367 in small business project development financing. 149 jobs have been created with an additional 23 jobs saved. These loans are typically made to manufacturing companies that are a higher credit risks than commercial lenders are willing to work with. With the infusion of RLF financing, which typically brings a lower interest rate, or longer amortization period, companies are able to make the deal cash flow at a level that allows the commercial lender to participate in the loan. This is a very successful program the ADO brings to the business community of Whatcom County.

• ADO Staff sit on both the Board and Loan Committee of the Lummi Community Development Financial Institution (CDFI). This fund makes loans primarily to Lummi Native Community members who are either in the fishing/crabbing industry or are artisans. Here also these tend to be higher risk clients that will use the CDFI to gain experience and grow their business to the point they are hiring employees and becoming commercially bankable.

• Whatcom County, the City of Bellingham and the Port of Bellingham have come together to jointly fund the Small Business Development Center (SBDC) for Whatcom County. ADO Staff administer both this “Tri-funder” agreement and the contract for business development services with the SBDC. In 2013 the SBDC served 973 businesses here in Whatcom County.

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Yakima County Development Association

Summary of Best Practices Shared and Implementation

Grantee: Yakima County Development Association Grant Number: S14-75106-441 Time Period Covered: July 1, 2013 – June 30, 2014 Summary of best practices shared and implemented by the ADO. Annual reports must include the information to show the ADO’s impact on employment and overall changes in employment 43.330.082

• Current employment and economic information for the community or regional area produced by the employment security department;

In Yakima County, the annual average unemployment rate decreased six-tenths of a percentage point between 2012 and 2013, from 9.8 to 9.2 percent. The unemployment rate decreased five-tenths of a point in December 2013 to 10.6 percent, from the 11.1 percent reading in December 2012. Total covered employment rose from 101,249 jobs in 2011 to 103,617 in 2013. This was a 2,368 job increase and a 2.3 percent upturn. The lion’s share of this upturn in Yakima County is due to growth of the region’s agriculture industry. In 2012, QCEW data showed that Yakima County’s labor market provided over $3.4 billion in wages. Approximately two-thirds of all wage income countywide was earned five industries: agriculture, health services, local government, manufacturing, and retail trade. The net change from the previous year's employment and economic information using data produced by the employment security department; Total covered employment rose from 102,748 jobs in 2012 to 103,617 in 2013.

• Other relevant information on the community or regional area; Recent data show that in December 2013 approximately 116,150 Yakima County residents were in the labor force, a 1.9 percent decrease from the 118,390 residents in the Civilian Labor Force (CLF) during December 2012. The good news: fewer residents were unemployed this past December versus the same month in 2012. Although the County’s labor force shrank between the Decembers of 2012 and 2013, the number of unemployed decreased more rapidly, and the unemployment rate fell five-tenths of a percentage point (as shown in this slide).

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Agriculture provided 26 percent of all jobs countywide, but supplied only 19 percent of total wage income because many jobs within the industry are seasonal. Conversely, private health services tallied almost 13 percent of total covered employment, but accounted for 16 percent of total wage income – indicating it is a relatively “good paying” industry. The local retail trade sector accounted for almost one in ten jobs countywide, but provided only 7.7 percent of total wage income. Manufacturing supplied 7.6 percent of all jobs in Yakima County but 9.4 percent of total wages/payroll. Yakima County’s nonfarm employment has either stabilized or posted year-over-year increases in 17 of the previous 19 months, including a 0.7-percent upturn between the Decembers of 2012 and 2013. Nonfarm employers in Yakima County provided 76,700 nonfarm jobs in December 2013, a 500 job and 0.7 percent increase from the 76,200 jobs tallied in December 2012.

In 2012, there were 102,748 covered employment jobs in Yakima County. The total payroll for 2012 was approximately $3.4 billion. The average annual wage was $33,108 or 63.7 percent of the state average of $51,964. Annual average wages were highest in utilities ($77,892) and in management of companies and enterprises ($65,950).

Per capita income in Yakima County in 2011 was $33,371 compared to the state at $43,878 and the nation at $41,560. Median family income in 2011 was $46,985 in Yakima County, much lower than that of the state ($68,628), according to the American Community Survey (adjusted for inflation to 2011 constant dollars).

Yakima County’s poverty rate in 2011for children under 18 years of age was considerably higher (31.7percent) than the state’s (18.3 percent) and the nation’s (22.5 percent) poverty rates.

Compared with the state and nation, Yakima County’s 2012 population has substantially more children and youth. Roughly 33.0 percent of the county is 19 or younger compared to 25.7 percent in the state and 26.3 percent in the nation. The county’s population age 60 or older totals 17.3 percent compared to 19.1 percent in the state and 19.4 percent in the nation.

Yakima County has a higher percentage of Latino and Hispanic residents than the state and nation. In 2012, only 46.4 percent of its residents were white, not Hispanic or Latino, much lower than the statewide average (71.6 percent) and the national average (63.0 percent). Yakima County’s Hispanic or Latino population makes up 46.3 percent of its population, much higher than Washington state (11.7 percent) and the nation (16.9 percent). Yakima County’s American Indian/Native Alaskan population was 5.7 percent compared to 1.8 percent in the state, which reflects the presence of the Yakima Nation.

Over the period 2007 to 2011, 17.7 percent of Yakima County’s population 25 years and older had less than a 9th grade education. This figure is considerably higher than the statewide average of 4.2 percent and the national average of 6.0 percent. Yakima County had a lower percentage of adults with bachelor’s degree or higher (11.2 percent) compared to the state at 20.2 percent and the nation at 17.9 percent over the same period.

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• The amount of funds received by the ADO through its contract with the department;

FY 14 FY15 Total Commerce Funds Awarded $122,198.00 $122,197.00 $244,395.00

• The amount of funds received by the ADO through all sources;

Report all "Other Funding Sources" as required per RCW 43.330.082

Other Funding Sources:

FY 14 FY 15 Total

Private $210,000 $240,000 $550,000 Local $125,000 $141,000 $166,000 State $122,198 $122,197 $244,395 Federal $20,500 $20,000 $40,500

Other $55,000 $52,000 $107,000 Total Budget $532,698 $575,197 $1,107,895

• The ADOs impact on employment through all funding sources. Over the last two years the Yakima County Development Association (YCDA) provided material assistance to the following new or expanding businesses with Yakima County:

Expansion/ Capital Investment

Estimated

Company Recruitment Total New Bldg. Taxable Jobs Payroll Paragon Films Recruitment $20,000,000 $1,500,000 $1,500,000 30 $1,664,000 Bale Breaker Brewing Co. Expansion $4,000,000 $2,500,000 $2,500,000 5 $124,800 Arvato Digital Services Recruitment $1,000,000 $0 $1,000,000 250 $5,250,000 Printing Press/Peninsula Expansion $20,000,000 $0 $0 40 $1,500,000 Amtech Corporation Expansion $4,500,000 $0 $0 75 $2,000,000 Biotwine Expansion $750,000 $750,000 $750,000 10 $300,000 Darigold (in process) Expansion $59,000,000 $10,000,000 $10,000,000 pending Na Investments 2013-2014

$108,250,000 $14,750,000 $15,750,000 410 $12,338,800

The companies assisted by YCDA created over 400 new jobs and have invested over $100 million in new facilities and equipment. These firms added over $12 million to local payrolls. These 410 direct jobs represent about 18% of the net job growth indicated for Yakima County over the last two years. The companies assisted range widely in size – from less than 5 to 250 employees and with direct investments ranging from $500,000 to $59.0 million. Of the $108.25 million of capital investment, $14.75 million was new building construction. Many of the firms assisted qualified for a sales tax exemption either on equipment investments. As a result $14.75 million of the total $108.25 million capital investment was subject to state and local sales tax.

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Construction Phase The investments made by new and expanding firms assisted by YCDA over the last five years total approximately $108 million in building construction and new equipment. While all of the building construction occurs locally, equipment is typically purchased from outside the region. As noted above, $14.75 million was attributable to new building construction. The $14.75 million stimulates $6.0 million in additional related business revenue, including revenues from local employee spending. The total increase in local construction related business revenue is approximately $19.1 million, spread over the last two to three years. Figure 1. Construction Phase Economic Contribution Economic Benefits of Construction Impact Category Direct Indirect Total Capital Investment $108,250,000 – –

New Building $14,500,000 $5,950,000 $19,100,000 Construction Jobs 140 50 190 Construction Payroll $7,140,000 $2,070,000 $9,210,000

Average Wage $51,000 $41,400 $48,500 Source: Cascade Planning Group – based upon IMPLAN Input-Output model for Yakima County.

During this time, construction and equipment procurement activity generated 140 person-years of employment directly, and an additional 50 indirect and induced jobs due to the economic multiplier effects. This employment generated a total of $9.2 million in construction related wage income. The average construction wage for industrial & commercial buildings is $51,000, well above the average salary of $31,800 per year in Yakima County. Annual Business Operations On-going economic benefits can be considered in terms of taxable sales, property values, employment and personal income, and state/local taxes. Taxable Sales & Property Values. An estimated 25% (or $3.1 million) of employee payroll is spent on local taxable goods and services. Employees also spend a portion of their income on housing. This analysis assumes employees spend one-third of their income on housing, which is estimated at a net present property value of $58 million; based upon an average interest rate of 6% and assumed 30 year financing period.

Employment & Income. As noted above, the seven businesses included in this analysis directly employ about 410 workers. These workers are estimated to receive about $12.4 million in wages annually (not including benefits), for an average wage of about $30,244 per year. This is slightly below the estimated average wage of $31,915 for all employment in Yakima County.

This economic activity is estimated to support an additional 465 jobs throughout the economy countywide. The total employment impact from YCDA business development efforts is 910 jobs, or 38% of the countywide job growth. Total annual wages, including economic multiplier effects, are estimated at $23.6 million.

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Figure 2. Annual Operational Economic Contributions

Annual Economic Benefits Impact Category Direct Indirect Total

Business Revenues $167,900,000 $68,800,000 $236,700,000 Number of Jobs 425 465 890 Total Payroll $12,338,000 $10,799,000 $23,137,000

– Average Wage $29,100 $22,900 $25,800 Taxable Retail Purchases $3,050,000 Supported Housing

Values $58,000,000 Source: Cascade Planning Group – based upon IMPLAN Input-Output model for Yakima County.

Tax Benefits. In addition to the private sector economic benefits, the expanded business activity also generates increased taxes for state and local government.

YCDA business attraction efforts have directly resulted in $108.25 million of business capital investment. In addition, income spent on housing from the newly hired employees equates to an estimated $58 million in property values. Taken together, these activities support approximately $1.6 million in property tax revenues to state and local government.

Note: The estimated property tax represents the first year of when the assets are fully valued. Company assets such as equipment typically depreciate over time. Factors such as reinvestment or economic declines can greatly affect the long-term value of the property. Due to the complexity of tracking the change in value over time, this analysis only provides an estimate of the initial collected property taxes.

Retail spending by employees also generates sales taxes. As noted above, an estimated $3.1 million is spent annually at local retail stores by employees associated with the new and expanded firms. This retail spending is estimated to approximately $50,000 per year for local governments and $201,100 annually to the state – for a combined total of $250,100 in annual state and local sales tax revenue. Another $1.19 million in one-time sales taxes from the $14.75 million taxable capital investments is generated for local and state governments. Figure 3. Fiscal Benefits from YCDA Business Development Activities Source: Cascade Planning Group.

Tax Generated Construction Operations Property Taxes:

Business Capital Investment $108,250,000 Employee Housing Values $58,300,000 Supported Assessed Value $166,550,000 Average Property Tax Rate $11.78 Property Taxes $1,961,959

Retail Sales Tax: Sales Taxable Capital

Investment $14,750,000 Employee Taxable Retail

Purchases $3,100,000 Sales Tax Rate 8.1% 8.1% State & Local Sales Taxes $1,194,750 $251,100

(1) The legislative authority of a rural county may impose a sales and use tax in accordance (1) The legislative authority of a rural county may impose a sales and use tax in accordance with the terms of this chapter. The tax is in addition to other taxes authorized by law and must with the terms of this chapter. The tax is in addition to other taxes authorized by law and must be collected from those persons who are taxable by the state under chapters be collected from those persons who are taxable by the state under chapters 82.0882.08 and and 82.1282.12RCW upon the occurrence of any taxable event within the county. The rate of tax may not RCW upon the occurrence of any taxable event within the county. The rate of tax may not exceed 0.09 percent of the selling price in the case of a sales tax or value of the article used exceed 0.09 percent of the selling price in the case of a sales tax or value of the article used in the case of a use tax, except that for rural counties with population densities between sixty in the case of a use tax, except that for rural counties with population densities between sixty and one hundred persons per square mile, the rate shall not exceed 0.04 percent before and one hundred persons per square mile, the rate shall not exceed 0.04 percent before January 1, 2000.January 1, 2000.

(2) The tax imposed under subsection (1) of this section must be deducted from the (2) The tax imposed under subsection (1) of this section must be deducted from the amount of tax otherwise required to be collected or paid over to the department of revenue amount of tax otherwise required to be collected or paid over to the department of revenue under chapter under chapter 82.0882.08 or or 82.1282.12 RCW. The department of revenue must perform the collection of RCW. The department of revenue must perform the collection of such taxes on behalf of the county at no cost to the county.such taxes on behalf of the county at no cost to the county.

(3)(a) Moneys collected under this section may only be used to finance public facilities (3)(a) Moneys collected under this section may only be used to finance public facilities serving economic development purposes in rural counties and finance personnel in economic serving economic development purposes in rural counties and finance personnel in economic development offices. The public facility must be listed as an item in the officially adopted development offices. The public facility must be listed as an item in the officially adopted county overall economic development plan, or the economic development section of the county overall economic development plan, or the economic development section of the county's comprehensive plan, or the comprehensive plan of a city or town located within the county's comprehensive plan, or the comprehensive plan of a city or town located within the county for those counties planning under RCW county for those counties planning under RCW 36.70A.04036.70A.040. For those counties that do not . For those counties that do not have an adopted overall economic development plan and do not plan under the growth have an adopted overall economic development plan and do not plan under the growth management act, the public facility must be listed in the county's capital facilities plan or the management act, the public facility must be listed in the county's capital facilities plan or the capital facilities plan of a city or town located within the county.capital facilities plan of a city or town located within the county.

(b) In implementing this section, the county must consult with cities, towns, and port (b) In implementing this section, the county must consult with cities, towns, and port districts located within the county and the associate development organization serving the districts located within the county and the associate development organization serving the county to ensure that the expenditure meets the goals of chapter 130, Laws of 2004 and the county to ensure that the expenditure meets the goals of chapter 130, Laws of 2004 and the requirements of (a) of this subsection. Each county collecting money under this section must requirements of (a) of this subsection. Each county collecting money under this section must report, as follows, to the office of the state auditor, within one hundred fifty days after the close report, as follows, to the office of the state auditor, within one hundred fifty days after the close of each fiscal year: (i) A list of new projects begun during the fiscal year, showing that the of each fiscal year: (i) A list of new projects begun during the fiscal year, showing that the county has used the funds for those projects consistent with the goals of chapter 130, Laws of county has used the funds for those projects consistent with the goals of chapter 130, Laws of 2004 and the requirements of (a) of this subsection; and (ii) expenditures during the fiscal year 2004 and the requirements of (a) of this subsection; and (ii) expenditures during the fiscal year on projects begun in a previous year. Any projects financed prior to June 10, 2004, from the on projects begun in a previous year. Any projects financed prior to June 10, 2004, from the proceeds of obligations to which the tax imposed under subsection (1) of this section has proceeds of obligations to which the tax imposed under subsection (1) of this section has been pledged may not be deemed to be new projects under this subsection. No new projects been pledged may not be deemed to be new projects under this subsection. No new projects funded with money collected under this section may be for justice system facilities.funded with money collected under this section may be for justice system facilities.

(c) The definitions in this section apply throughout this section. (c) The definitions in this section apply throughout this section.

(i) "Public facilities" means bridges, roads, domestic and industrial water facilities, sanitary (i) "Public facilities" means bridges, roads, domestic and industrial water facilities, sanitary sewer facilities, earth stabilization, storm sewer facilities, railroads, electrical facilities, natural sewer facilities, earth stabilization, storm sewer facilities, railroads, electrical facilities, natural gas facilities, research, testing, training, and incubation facilities in innovation partnership gas facilities, research, testing, training, and incubation facilities in innovation partnership zones designated under RCW zones designated under RCW 43.330.27043.330.270, buildings, structures, telecommunications , buildings, structures, telecommunications

RCW 82.14.370RCW 82.14.370

Sales and use tax for public facilities in rural counties.Sales and use tax for public facilities in rural counties.

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infrastructure, transportation infrastructure, or commercial infrastructure, and port facilities in infrastructure, transportation infrastructure, or commercial infrastructure, and port facilities in the state of Washington.the state of Washington.

(ii) "Economic development purposes" means those purposes which facilitate the creation (ii) "Economic development purposes" means those purposes which facilitate the creation or retention of businesses and jobs in a county.or retention of businesses and jobs in a county.

(iii) "Economic development office" means an office of a county, port districts, or an (iii) "Economic development office" means an office of a county, port districts, or an associate development organization as defined in RCW associate development organization as defined in RCW 43.330.01043.330.010, which promotes , which promotes economic development purposes within the county.economic development purposes within the county.

(4) No tax may be collected under this section before July 1, 1998. (4) No tax may be collected under this section before July 1, 1998.

(a) Except as provided in (b) of this subsection, no tax may be collected under this section (a) Except as provided in (b) of this subsection, no tax may be collected under this section by a county more than twenty-five years after the date that a tax is first imposed under this by a county more than twenty-five years after the date that a tax is first imposed under this section.section.

(b) For counties imposing the tax at the rate of 0.09 percent before August 1, 2009, the tax (b) For counties imposing the tax at the rate of 0.09 percent before August 1, 2009, the tax expires on the date that is twenty-five years after the date that the 0.09 percent tax rate was expires on the date that is twenty-five years after the date that the 0.09 percent tax rate was first imposed by that county.first imposed by that county.

(5) For purposes of this section, "rural county" means a county with a population density of (5) For purposes of this section, "rural county" means a county with a population density of less than one hundred persons per square mile or a county smaller than two hundred twenty-less than one hundred persons per square mile or a county smaller than two hundred twenty-five square miles as determined by the office of financial management and published each five square miles as determined by the office of financial management and published each year by the department for the period July 1st to June 30th.year by the department for the period July 1st to June 30th.

[2012 c 225 § 4; 2009 c 511 § 1. Prior: 2007 c 478 § 1; 2007 c 250 § 1; 2004 c 130 § 2; 2002 [2012 c 225 § 4; 2009 c 511 § 1. Prior: 2007 c 478 § 1; 2007 c 250 § 1; 2004 c 130 § 2; 2002 c 184 § 1; 1999 c 311 § 101; 1998 c 55 § 6; 1997 c 366 § 3.]c 184 § 1; 1999 c 311 § 101; 1998 c 55 § 6; 1997 c 366 § 3.]

Notes:Notes:

Effective date -- 2007 c 478:Effective date -- 2007 c 478: "This act takes effect August 1, 2007." [2007 c 478 § 2.]"This act takes effect August 1, 2007." [2007 c 478 § 2.]

Intent -- 2004 c 130:Intent -- 2004 c 130: "It is the intent of the legislature in enacting this 2004 act to reaffirm"It is the intent of the legislature in enacting this 2004 act to reaffirmthe original goals of the 1997 act which first provided distressed counties with the local the original goals of the 1997 act which first provided distressed counties with the local option sales and use tax contained in RCW option sales and use tax contained in RCW 82.14.37082.14.370. The local option tax is now available . The local option tax is now available to all rural counties and the continuing legislative goal for RCW to all rural counties and the continuing legislative goal for RCW 82.14.37082.14.370 is to promote the is to promote the creation, attraction, expansion, and retention of businesses and provide for family wage creation, attraction, expansion, and retention of businesses and provide for family wage jobs." [2004 c 130 § 1.]jobs." [2004 c 130 § 1.]

Finding -- Intent -- 1999 c 311:Finding -- Intent -- 1999 c 311: "The legislature finds that while Washington's economy "The legislature finds that while Washington's economy is currently prospering, economic growth continues to be uneven, particularly as between is currently prospering, economic growth continues to be uneven, particularly as between metropolitan and rural areas. This has created in effect two Washingtons: One afflicted by metropolitan and rural areas. This has created in effect two Washingtons: One afflicted by inadequate infrastructure to support and attract investment, another suffering from inadequate infrastructure to support and attract investment, another suffering from congestion and soaring housing prices. In order to address these problems, the legislature congestion and soaring housing prices. In order to address these problems, the legislature intends to use resources strategically to build on our state's strengths while addressing intends to use resources strategically to build on our state's strengths while addressing threats to our prosperity." [1999 c 311 § 1.]threats to our prosperity." [1999 c 311 § 1.]

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Part headings and subheadings not law -- 1999 c 311:Part headings and subheadings not law -- 1999 c 311: "Part headings and "Part headings and subheadings used in this act are not any part of the law." [1999 c 311 § 601.]subheadings used in this act are not any part of the law." [1999 c 311 § 601.]

Effective date -- 1999 c 311:Effective date -- 1999 c 311: "Sections 1, 101, 201, 301 through 305, 401, 402, 601, "Sections 1, 101, 201, 301 through 305, 401, 402, 601, and 605 of this act take effect August 1, 1999." [1999 c 311 § 604.]and 605 of this act take effect August 1, 1999." [1999 c 311 § 604.]

Severability -- 1999 c 311:Severability -- 1999 c 311: "If any provision of this act or its application to any person or "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [1999 c 311 § 606.]other persons or circumstances is not affected." [1999 c 311 § 606.]

Intent -- 1997 c 366:Intent -- 1997 c 366: "The legislature recognizes the economic hardship that rural "The legislature recognizes the economic hardship that rural distressed areas throughout the state have undergone in recent years. Numerous rural distressed areas throughout the state have undergone in recent years. Numerous rural distressed areas across the state have encountered serious economic downturns resulting distressed areas across the state have encountered serious economic downturns resulting in significant job loss and business failure. In 1991 the legislature enacted two major pieces in significant job loss and business failure. In 1991 the legislature enacted two major pieces of legislation to promote economic development and job creation, with particular emphasis of legislation to promote economic development and job creation, with particular emphasis on worker training, income, and emergency services support, along with community on worker training, income, and emergency services support, along with community revitalization through planning services and infrastructure assistance. However even though revitalization through planning services and infrastructure assistance. However even though these programs have been of assistance, rural distressed areas still face serious economic these programs have been of assistance, rural distressed areas still face serious economic problems including: Above-average unemployment rates from job losses and below-problems including: Above-average unemployment rates from job losses and below-average employment growth; low rate of business start-ups; and persistent erosion of vitally average employment growth; low rate of business start-ups; and persistent erosion of vitally important resource-driven industries.important resource-driven industries.

The legislature also recognizes that rural distressed areas in Washington have an The legislature also recognizes that rural distressed areas in Washington have an abiding ability and consistent will to overcome these economic obstacles by building upon abiding ability and consistent will to overcome these economic obstacles by building upon their historic foundations of business enterprise, local leadership, and outstanding work their historic foundations of business enterprise, local leadership, and outstanding work ethic.ethic.

The legislature intends to assist rural distressed areas in their ongoing efforts to address The legislature intends to assist rural distressed areas in their ongoing efforts to address these difficult economic problems by providing a comprehensive and significant array of these difficult economic problems by providing a comprehensive and significant array of economic tools, necessary to harness the persistent and undaunted spirit of enterprise that economic tools, necessary to harness the persistent and undaunted spirit of enterprise that resides in the citizens of rural distressed areas throughout the state.resides in the citizens of rural distressed areas throughout the state.

The further intent of this act is to provide: The further intent of this act is to provide:

(1) A strategically designed plan of assistance, emphasizing state, local, and private (1) A strategically designed plan of assistance, emphasizing state, local, and private sector leadership and partnership;sector leadership and partnership;

(2) A comprehensive and significant array of business assistance, services, and tax (2) A comprehensive and significant array of business assistance, services, and tax incentives that are accountable and performance driven;incentives that are accountable and performance driven;

(3) An array of community assistance including infrastructure development and business (3) An array of community assistance including infrastructure development and business retention, attraction, and expansion programs that will provide a competitive advantage to retention, attraction, and expansion programs that will provide a competitive advantage to rural distressed areas throughout Washington; andrural distressed areas throughout Washington; and

(4) Regulatory relief to reduce and streamline zoning, permitting, and regulatory (4) Regulatory relief to reduce and streamline zoning, permitting, and regulatory

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requirements in order to enhance the capability of businesses to grow and prosper in rural requirements in order to enhance the capability of businesses to grow and prosper in rural distressed areas." [1997 c 366 § 1.]distressed areas." [1997 c 366 § 1.]

Goals -- 1997 c 366:Goals -- 1997 c 366: "The primary goals of chapter 366, Laws of 1997 are to:"The primary goals of chapter 366, Laws of 1997 are to:

(1) Promote the ongoing operation of business in rural distressed areas; (1) Promote the ongoing operation of business in rural distressed areas;

(2) Promote the expansion of existing businesses in rural distressed areas; (2) Promote the expansion of existing businesses in rural distressed areas;

(3) Attract new businesses to rural distressed areas; (3) Attract new businesses to rural distressed areas;

(4) Assist in the development of new businesses from within rural distressed areas; (4) Assist in the development of new businesses from within rural distressed areas;

(5) Provide family wage jobs to the citizens of rural distressed areas; and (5) Provide family wage jobs to the citizens of rural distressed areas; and

(6) Promote the development of communities of excellence in rural distressed (6) Promote the development of communities of excellence in rural distressed areas." [1997 c 366 § 2.]areas." [1997 c 366 § 2.]

Severability -- 1997 c 366:Severability -- 1997 c 366: "If any provision of this act or its application to any person or "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [1997 c 366 § 11.]other persons or circumstances is not affected." [1997 c 366 § 11.]

Captions and part headings not law -- 1997 c 366:Captions and part headings not law -- 1997 c 366: "Section captions and part "Section captions and part headings used in this act are not any part of the law." [1997 c 366 § 12.]headings used in this act are not any part of the law." [1997 c 366 § 12.]

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