Bearing the torch for
economic development
EDC’s look to the past and the future of the region
by John Kinmonth


Cue the inspirational music. The theme song from “Chariots of Fire” will do. Is your heart racing yet? Good, start reading.
It’s coming. With a full entourage of corporate sponsors, millions of international viewers and a logo almost as widely known as the golden arches, the 2010 Winter Olympics began its frenzied descent upon Vancouver and the surrounding region.
While the U.S. Department of Homeland Security may stand between the Pacific Northwest and Olympic glory, the sacred flame could still burn bright enough to torch local economic development as the throngs of athletes, spectators and media members race up the I-5 corridor.
“There are going to be a lot of people looking at our little corner of the world,” said Rob Pochert, executive director of the Bellingham/Whatcom Economic Development Council. “I think in year’s following we’ll see the benefits.”
As Whatcom, Skagit and Island counties dive headfirst into another growth splurge – with or without the Olympics – the region’s economic development councils want to make sure the predicted population increases are accompanied by unpredicted job growth.
Although growth can be a touchy issue in these parts, the EDC’s have tried to carry the torch for a healthy regional business climate by working as a liaison between the private and public sectors and actively promoting its respective counties.

Whatcom EDC hopes for quality, not quantity
While Whatcom County’s employment numbers were severely bruised over the past four years by major layoffs at Georgia-Pacific West, Inc.’s pulp and chemical operations and the Alcoa Intalco Works aluminum smelter, Pochert said they’ve been able to replace lost jobs.
“What we have not been able to replace are the wages that went with those jobs,” he said. “We’re seeing a shift in major manufacturing here locally. The biggest change has been in the decline of industries related to natural resource extraction such as mining, commercial fishing and logging.”
With more than 30,000 new inhabitants predicted for Bellingham alone over the next 20 years, Whatcom County is poised for large population growth. Pochert, however, advocates that population growth doesn’t necessarily translate into economic growth outside of the development community.
“There are two kinds of growth,” he said. “One is population growth, and that’s a significant issue; the other piece that’s always overlooked is that economic growth isn’t always contingent upon population growth.
“We’ve gained notoriety as a good place to retire,” Pochert said.
With the population influx and loss of higher paying jobs, Pochert recognizes difficulties in the subsequent higher cost of living.
“It is already known that the average working person cannot afford a home in Whatcom County,” he said. Pochert also said the Bellingham/Whatcom EDC is not simply working to attract jobs, it’s working to attract higher paying ones.
Pochert said the EDC is hoping to recruit more medical and electronics manufacturers in the future, but it is currently working on approximately 14 projects that would bring an additional 300 to 400 jobs and $43 million in business to Whatcom County. While he would not divulge the specific companies, Pochert said it’s a wide variety of industries mostly related to agriculture and lumber.
He also sees large potential for the county in Canadian companies wanting to establish a presence in the United States. This past November, the EDC partnered with the Bellingham/Whatcom Chamber of Commerce to sponsor a “Think Bellingham” reception in Surrey, B.C., which was attended by more than 80 Canadian business operators and four B.C. chambers of commerce. Pochert said most of the county’s 2004 relocation activity came from north of the border.
This past year, according to the EDCs numbers, 166 new jobs were created with an additional $7.8 million in capital investment on the county’s tax rolls. In assisting existing local businesses, the EDC made 77 onsite calls and is working to help improve existing infrastructure. One current project Pochert highlighted was an effort to renovate Mission Road in Everson, which would improve access to the SELCO Mill, ensuring the retention of 150 jobs once it’s completed.
With the Olympics fast approaching, Pochert said the EDC will try to make the most of the potential publicity through brochures and signs.
“We’re going to be working very closely with the Convention and Visitor’s Bureau and the Chamber as we get closer to 2010,” he said. “I think the general message is Whatcom County is a good place to work, play and operate a business.”
Pochert said the Olympics have garnered federal and state attention to local infrastructure needs. Several major renovation projects have been scheduled for both Blaine border crossings and the Guide Meridian. All projects are expected to be finished in time for the games.
Besides the Olympics, Whatcom County has another big project on the horizon that has already garnered national attention—the redevelopment of the Bellingham waterfront.
Earlier this year, the Port of Bellingham closed on 137 acres of industrial waterfront property owned by Georgia-Pacific West, Inc. The Port plans to cleanup the property and convert it to a mixed-use neighborhood complete with a large-slip marina.
“This has the potential to be one of the stellar waterfronts on the Pacific coast,” Pochert said. “It will definitely have a significantly positive impact on all of Whatcom County.”

Island EDC breathes easy after BRAC announcement
It is impossible to talk about Island County economics without mentioning Naval Air Station Whidbey Island. With an estimated $500 million direct impact on Island County, the base employs more than 10,000 military and civilian personnel.
Whidbey Island held its collective breath as the Pentagon mulled over possible U.S. military base closures this past spring. But, with 180 facilities slated for closure, Defense Secretary Donald Rumsfield did not include the Whidbey Island military mainstay in his May 16 Base Realignment and Closure recommendations. In fact, base officials expect a net gain in employment by adding 172 civilian positions and losing just 34 military positions.
Sharon Hart, Island District EDC Executive Director said in a recent email that the BRAC announcements would bolster growth in commercial services. Add a $32 million tourism plan to renovate Oak Harbor’s downtown and waterfront districts and Island County should continue its path as one of the fastest growing counties in the state. Meanwhile, the EDC continues to work behind the scenes to attract new businesses and retain existing ones.
“Our local economic sector analysis has established strong working relationships with local government, chambers of commerce and builders’ associations that has recognized the importance of our retention and expansion program,” Hart said. “Partnerships are extremely important to our economic vitality.”
The EDC has contributed in the development of a variety of programs that enhance the region’s traditional industries.
“The council participates in several regional initiatives such as Ag Innovation, Marine Skills Centers, Workforce development and small business resource assistance,” Hart said.
In figuring out what type of businesses would be a good fit for the community, Hart said the council bases its efforts on a profile analysis.
“First of which is where are we losing local dollars on goods and services and how can we recapture this lost revenue,” Hart said. “The second is more futuristic – what business sectors would do well in our island location? Our marketing and recruitment trade show efforts particularly in scientific instrument and optical sectors stem from this decision making process.”
Placing booths at trade shows, like this year’s International Symposium on Optical Science and Technology in Denver, is part of the EDC’s strategy in attracting these businesses.
“Our strongest recruitment tool is our highly educated and underutilized workforce made up primarily of dependents from our largest employer, Naval Air Station Whidbey Island,” Hart said.
Looking ahead to 2010, Hart hopes to attract the attention of some of the crowds passing through the region.
“Whidbey and Camano Islands are extremely popular in recreation opportunities with 254 shoreline miles and nine state parks,” she said. “We feel we’re positioned as a desirable extended destination for 2010 Olympics visitors to Washington state.”
Skagit’s economic past motivates its future
The Economic Development Association of Skagit County was born out of hard times. When the area’s timber industry began to decline in the mid-1980s, Skagit County lost a significant amount of manufacturing jobs.
“It reached the peak in the 80s with 20 percent unemployment,” said EDASC Executive Director Don Wick. Around this time, area leaders got together and decided to spearhead the association to help kick start the economy.
Today that hungry work ethic has translated into aggressive retention and recruitment programs for businesses throughout Skagit valley. The EDASC office works with a wide variety of programs that assist in the training of skilled workers, small business development, infrastructure investments, minority-owned businesses and general marketing. Wick said it handles about 100 business projects during the year.
He also highlighted the Latino Business Expansion and Retention Program, which provides assistance for Latino owned businesses, including everything from marketing to obtaining loan approvals.
Wick attributes EDASC’s ambitious programs to highly motivated staff and committed board members.
With recent growth in Skagit’s boat building and wood products industries, Wick hopes to keep up the county’s brisk pace, citing local success stories such as Tri-County Truss. Wick said the EDASC has seen Tri-County grow from 15 employees when it first moved to Skagit County, to 160 employees today.
Wick also expressed excitement over BMW Oracle’s decision to specially manufacture its 2007 America’s Cup entry in Skagit County.
“It allows us to tell the world that in all the places in North America they chose Skagit County,” Wick said. Oracle chose the location due to a prior relationship with Sedro- Woolley manufacturer Janicki Industries.
Wick said companies interested in moving to Skagit Valley face few governmental hurdles throughout the permitting process.
“If it’s a good project and it’s meant to occur it goes through the system at a sensible pace,” Wick said. “There aren’t unnecessary hurdles. I think the community in Skagit is pretty practical in working with companies that are trying to expand or locate here.”
Like other EDC’s, Wick said the majority of its funding comes from the private sector with some government contracts.
In dealing with businesses thinking of relocating, Wick said most have similar concerns.
“The No. 1 thing people ask us is what is your available workforce and training,” he said. “There’s nothing more important.”
To deal with this common thread, the EDASC just helped launch a program called The Bridge Project that’s designed to help train workers and connect them with local employers. Teaming up with the state Department of Community, Trade, and Economic Development, Skagit Valley College, Northwest Workforce Development Council and others, The Bridge Program hopes to assist the chronically unemployed make intrinsic changes that will translate into jobs.
Heading toward the future, Wick predicts more aerospace industry manufacturers relocating to Skagit as Boeing shifts from manufacturing to assembly of its airplanes. Like Whatcom County, Wick also sees potential in additional wood product industries and bio-technical and agriculture businesses helping to continue the local boat building industry’s robust growth.
“I think business is going to continue to be brisk,” he said. “The future is very bright. More people are finding smaller communities for the improved quality of life. It’s less important where you’re located in the world today then a couple years ago.”
Wick has some important advice that goes further than economic development as the region approaches 2010 and beyond.
“As we face the future, we have to realize that we need to protect the assets we have here: our open space, our natural beauty and our agricultural and farmland.”