Skagit leaders face new year
with vigor and optimism

We have heard it said that economists have successfully predicted nine of the past five recessions, and an equal number of the past five recoveries.

That bit of sour humor comes to mind when reflecting on comments by Brian Wesbury, regarded by some as one of the nation’s top economic forecasters, before the annual meeting of the Economic Development Association of Skagit County around this time last year.

Wesbury predicted that the economy would recovery by spring of 2002. Oh, well. Make that 10 of the past five recessions. Only days earlier, in a speech before the Burlington Chamber of Commerce, a non-economist, Don Brunell of the Association of Washington Business, was offering a different perspective. Brunell predicted that the economy wouldn’t recover until the spring of 2003. He still has a chance to be right.

Economic news – much of it discouraging – dominated broadcast and print media through much of 2002. The subject was topped only by the war on terrorism and the drum beat over once and for all resolving the “Saddam Question” – both of which carry huge economic consequences in and of themselves.

We feel vulnerable in a way that we, as a nation, have not felt since Dec. 7, 1941, the day the Japanese launched their strike against the United States at Pearl Harbor. The Japanese knew it was just a matter of time before the Americans entered the war – on the side of the Allies. They thought that sinking a significant part of the U.S. Pacific fleet might give them a head start on the war for control of Asia. What it did was fill Americans with a terrible resolve

The 9/11 attack on the twin towers has made many of us fearful, angry and uncertain about the future. And some wonder whether this generation of Americans can rise to the occasion as bravely as those who manned both trenches and home front during World War II. They were memorialized in Tom Brokaw’s book, The Greatest Generation.

Each generation must establish itself in its own right. Some generations are presented with simple choices – such as fight or die – which boils down to the option presented to our parents and grandparents on that day in Pearl Harbor.

Our choices may not be that simple. We must decide whether to live the lives of our dreams or give in to the vague fear that some awful event, ignited by people strange to us, in some obscure place, and at some unexpected time, may obliterate those dreams.

Consumer confidence is down. Those economists whose predictions have too often failed to predict are now telling us that instead of inflation we now need to fear the possibility of deflation. In Washington State, voters seized the opportunity to whack away at government revenue sources through a series of initiatives offered by the disgraced initiative and referendum entrepreneur Tim Eyman. The unshakeable belief that government is wallowing in excess and waste continued to drive negative votes against revenue issues.

Referendum 51, the mixed bag of some $11 billion in highway projects, went down hard at the polls last November as Washington voters balked at the price tag as well as some of the uses to which the funds were to be put. Included among the projects was money to widen Highway 20 between I-5 and Farm to Market Road.

Voters also approved a measure that would roll back local fees on vehicle registrations, despite entreaties from hundreds of elected officials and business leaders. City and county governments, already in belt-tightening phase, began the process of hiring freezes, trimming public safety budgets and closing libraries.

Whatever the state of the world beyond our valley, events that impact more directly on lives here in Skagit County left us feeling a little better about the future, although we weren’t without our setbacks. There were more Boeing layoffs, further declines in the timber sector, yet another tough year for many of the county’s farmers.

But there were some bright spots as well. Don Wick, executive director of EDASC, tells us of at least half a dozen companies that either expanded or located here during 2002. Health insurer Regents Blue Shield moved its operations out of Seattle, bringing about 300 new jobs and settling in a new building in Burlington. T Bailey Co., fabricator of huge, steel storage tanks, is poised to become a regional force in the burgeoning wind power industry, building the massive, 200-foot towers to support the turbines that generate electricity.

By early this year, Wick expects to see the job count in the growing boat-building industry to exceed 300 in Skagit County alone, with further expansion expected here and in adjacent counties. That total includes a builder of luxury yachts that is considered likely to locate in the county, bringing as many as 60 jobs. Wick can’t name the company until the deal is officially sealed.

The troubled and long-awaited bridge-widening project on Riverside Boulevard over the Skagit River was moving along again upon completion this year will ease the bottleneck on the existing two-lane bridge linking Burlington and Mount Vernon.

For the most part, people seemed ready to be finished with 2002 and its mixed blessings and to look ahead. That’s why we asked several of our local leaders in government and business to look to the year ahead rather than dwell on events of the past year.

They are:

• Skye Richendrfer, mayor of Mount Vernon;

• Bob Rose, executive director of Skagitonians to Preserve Farmland;

• Anne Schwartz, organic farmer and a leader of the sustainable agriculture movement;

• Paul Chaplik, executive director of United Way of Skagit County;

• Jerry Heller, executive director of the Port of Skagit County;

• Bruce McBane, director of the Skagit Valley College Business Resource Center;

• Donald Munks, Skagit County commissioner;

• Gary Moulton, director of the Washington State University Agricultural Research Station in Mount Vernon;

• U.S. Rep. Rick Larsen;

• Michele Koci, dean of vocational education at Skagit Valley College.

 

Local governments to fit improvements into tighter budgets

My attitudes about leadership and communities were formed at a young age. I was taught to be optimistic, respectful and to engage in our community. Those values have remained strong in me.

I’ve been asked to predict a bit about what things might look like around our community one year from now. Robert Kennedy’s words ring in my ears: “The future is not a gift, it is an achievement.” The short version is that we have monumental challenges ahead. I’d like to present my observations about where we may find ourselves around three primary themes — infrastructure, governance, and economic development.

Infrastructure — We use the word in the context of roads, bridges, sewers, waterlines and telecommunications, including fiber optics. We appear to be back on schedule with the Riverside Drive Bridge project. Sometime in 2003, the new bridge should open for traffic between Burlington and Mount Vernon. College Way is due for some major blacktopping, as well as the installation of a couple of new traffic signals at Urban Avenue and at Waugh Road. South Mount Vernon will have sewer installed along Cedardale Road, and our fiber optic system will be extended there, as well as to Burlington. The new multi-modal Skagit Transportation Center will be approaching completion by the end of 2003.

Governance — The State of Washington is in major trouble with regard to its budget. My prediction is that the Legislature will expand gaming and gambling in an effort to make up the shortfall that appears to be in the $2.5 billion range. On the local front, the cities and county will continue to struggle with GMA implementation, resulting in further lawsuits and general dysfunction. There will be increased public discussion about whether the time has come to change the county form of government through a charter process.

Economic Development — We will struggle economically throughout the first half of the year, but also see many new businesses choosing to locate and expand in Skagit County. Our fiber optic network will provide world-class telecommunications to businesses and residences within our city limits and beyond.

Many new and exciting changes are in store, as well as some difficult challenges. At the end of 2003, I believe we’ll look back with some amazement at all of the changes that occurred, and look forward with renewed optimism at a very bright future for our community.

 

Creative partnerships drive agricultural expansion

The old saying that every challenge presents a new opportunity couldn’t be truer for farming this next year in the Skagit Valley.

Two intertwined forces create a strain on the fragile condition of agriculture — the dynamic of continuing regulatory demands; and dramatic changes in the basic economics of farming and access to markets.

The key regulatory issue in 2003 will be the same one we’ve been struggling with for the past 5 years: how to harmonize management of the best farmland and the best salmon river in Western Washington? Upriver, the focus is on buffers. How much tree cover is necessary to ensure that salmon populations aren’t harmed? How can landowners become engaged in the necessary partnership to ensure that these pieces of the salmon’s lifecycle habitat needs are met? Can a voluntary, incentive-based solution be developed that reflects specific site conditions rather than a “one size fits all” regulation?

In the diked delta, the issue had come to down to a very simple question. Can the absolutely critical drainage infrastructure for agriculture be maintained? Our soils require drainage to be farmed. Our cities and adjacent areas also depend on this system to remove surface water during the winter. The real challenge will be to maintain our drainage systems while working with fish advocates to find acceptable, on-the-ground solutions for the habitat needs of endangered Chinook salmon.

The second major challenge is rooted in the changing structure of our food system. Some 70 percent of US groceries are sold through 6 or 7 major chains such as Wal-Mart and Safeway. Those chains have shifted their purchasing decisions to centralized locations like Phoenix or Cincinnati. Consolidation in the grocery business means fewer and fewer access points for small to medium-size Skagit Valley growers. Our task is to understand and find new markets and opportunities for our growers and inform regional consumers about the values and benefits that come from supporting local farmers.

We are excited about working with the Skagit Cattlemen’s Association and other partners who will soon have available locally raised, grass-fed, hormone-free beef and lamb. This will be a key piece of ensuring the viability of an important farming sector. More difficult will be finding ways to increase incomes for our struggling dairy farmers who currently receive less for their milk than the cost of production. Dairy is a critical piece of the farming infrastructure and crop rotation puzzle here in the valley. We must do everything we can to maintain a healthy dairy industry.

We must also support efforts by producers to find value-added opportunities for their productions such as the pickle-brining facility and the berry processing plant being built at Sakuma Farms. We will also continue to encourage innovative ventures and help find new markets for crops like artichokes, blueberries, tea (yes, there are 5 acres planted here in the valley), wine grapes and other products.

When all is said and done, successfully addressing these challenges will allow us to maintain and enhance a landscape of successful Skagit Valley generational farms, engaged in exemplary stewardship of their land, water and habitat.

 

Organic producers face increased challenges, opportunities

For almost 30 years, organic farmers have been developing standards and guidelines for the production of organic food and fiber. Up until the past ten years most of these were small farmers, meaning only that proprietors did most of the management and work on their own farms. The market for these farmers was largely limited to food co-ops and natural food stores. Of course many of these growers also sold directly to customers from their farms and at farmers markets, but it is fair to say many farmers depended on these wholesale accounts for a significant part of their income.

Let’s fast-forward ten years to 2002. The organic food industry is the only growth sector in the food industry. Eating out at fast food restaurants is fast replacing home food preparation. Consequently the number and size of organic farms has grown exponentially. Every major food company in the world now operates an organic food division, many of which started as the pioneering organic farms. A similar shift has developed in the actual work of developing standards of production. Few small farmers are still involved with the National Organic Program and at both the state and national level organic advisory meetings, agendas are now concerned with food processing aids, and ensuring that organic and conventional farming operations and harvested crops are kept separate.

What does this translate to? The short answer is that the specialization and consolidation of farming that has so afflicted America’s family farmers is being repeated in organic agriculture as well. The trends in grocery ownership are the same; with purchasing and marketing pressures whose description is beyond the scope of this article. One result is falling prices to the farmer. Whether its apples, berries, carrots, or potatoes; wholesale prices paid to organic farmers have plummeted and most small scale organic farmers have largely shifted away from selling to wholesale markets and now sell directly to the eating public.

With the final implementation of the National Organic Program in place come requirements in creating a paper trail of documentation based on the needs of mixed conventional and organic farm operations that are either interstate or international shippers. The expense, paperwork and crop tracking requirements, and compost and manure handling requirements are just a few of the issues that are forcing many farmers to reconsider certification.

As a small grower with five acres of fruit and vegetables, selling locally and to two farmers markets, I am required to fill out the same half inch of forms that an operation with 5,000 acres and full time office staff has to. For 2001, it took me about 13 hours. Some small farmers I know spent three to five days filling out paperwork. The irony is that only certified growers (and those with sales less than $5,000) can use the word organic. If a farmer stops being certified, this means they can no longer call their produce or farms organic. This is only one issue among many and there are several new efforts to develop alternative labeling systems. These include The Wholesome Food Association, Certified Naturally Grown, and Social Stewardship Standards.

This is a time of great change for our family farmers, both organic and conventional. Globalization, urbanization, and the American high fat, fast food diet is meeting head on with increased media attention to obesity and health impacts from this food. A rising interest in farmer’s markets and increased awareness of the need to preserve farms, communities and wildlife habitat are bringing more people to realize that their purchases will guide our future. The development of organic standards was merely one goal of the early pioneers of organic farming. The long-term goal of sustainable agriculture is to grow food that is environmentally sound, economically viable and socially just. We have a lot of work yet to do.

 

Generosity continues during troubled economy

The people of the Skagit Valley have a longstanding tradition of providing a safety net for community members who find themselves in need of food, shelter and essential services. The culture of the valley includes the belief that it is important to provide basic services for neighbors in need.

Recently, the state economy has not been good and locally, the unemployment rate is high. These factors result in the number of people needing help continuing to grow. This has put a strain on the safety net, but a look at our history shows that Skagit Valley people rise to the challenge during times of need.

The United Way of Skagit County conducts an annual fall fundraising campaign on behalf of 25 local non-profit agencies. These agencies provide a broad spectrum of services for people throughout the county. Last year, under the leadership of campaign chair Peter Browning, we raised $736,095. This year’s campaign chair is Tom Smith, and the goal is $750,000. Hundreds of volunteers help with the United Way fundraising efforts. They walk their talk about helping community members in need.

The main reason the United Way has been successful over the years is that fundraising is conducted locally to support services for local people. In other words, we pull together as residents of Skagit County to strengthen our community safety net.

One of the beauties of giving through the United Way is that community volunteers carefully evaluate all funding requests and recommend funding where they think it will do the most good. It is a difficult job because there are so many needs and so many worthy programs, but using local people to make the decisions is a great way to get the most bang for the buck.

The majority of the dollars raised during the United Way campaign are the result of workplace giving. Corporations and government organizations committed to giving back to the community allow their employees to have dollars deducted regularly from their paychecks. These dollars, along with corporate contributions and individual gifts, provide the community safety net.

The United Way of Skagit County began in 1963 under the leadership of Dr. M. L. Lewis and Ted Reep. The campaign their first year raised $81,419. Since then the campaign has grown each year to help meet increased needs. It is wonderful that the people of Skagit Valley support a safety net so people in need of food, shelter and/or other essential services have a place to turn.

 

Port plan focuses on stimulus and good government

Ports are the only public entity which have the primary responsibility of providing economic development opportunities. Like the rest of the state and the country, Skagit County is struggling with difficult economic times. Washington has one of the highest unemployment rates in the nation. Skagit County is about a percentage point or so above the state average. Many companies are in a holding pattern or contracting. It is within this context that the Port of Skagit County must set its work plan.

In response to these economic challenges, the port commission plans to implement three initiatives. First, the communities in the eastern portion of the county have been particularly hard hit over the years. Based upon proposals developed and submitted by the communities, the port will be entering into partnership programs with those communities. This entails funding programs and facilities that will bring economic activity to the communities.

Second, many business owners and entrepreneurs seek ownership of land as they build their company. In order to accommodate this important economic sector, and in an effort to spark business activity, the port will pursue sale of its business park lots at Hopper Road in Burlington. To this end, the port will engage in an active marketing program.

The third challenge is to ensure that the port’s fees for services cover the cost of those services. Tie-down rates at the airport were recently increased. The commission has recently adopted a rate model for the La Conner Marina that will apportion rates fairly among all boaters to ensure recovery of the cost of operation and replacement of the facility.

The three initiatives respond to the challenges of the current economic times. The first two create opportunity by sparking the initiative of others to create economic activity. The third is founded in good government and fairness by providing equitable and appropriate rates for services.

The commission is entering new territory. But, the difficult economic times require innovation to create new policies for the benefit of the community.

 

Resource center can help you grow your business in 2003

Every business, young or old, faces challenges every day. It is one of the reasons we tend to spend too much time in our businesses and not enough time on them. As small businesses and sole proprietors, we often try to solve our problems alone, even though we know it almost always helps to get a second opinion. Ironically, for many businesses, especially those in Skagit, San Juan and Island Counties, that second opinion is not only readily available, it is free.

We’re not talking about the kind of free advice that bombards us every day, the kind that is biased and unsolicited. What we’re talking about is professional, objective counsel that has your best interests in mind, the kind on which you can base important decisions.

This is what the Business Resource Center in downtown Mount Vernon offers businesses in our three-county region. The BRC is a partnership between professional, non-profit organizations and agencies that exist to help businesses. Skagit Valley College, the Small Business Administration, the Economic Development Association of Skagit County, the Skagit Council of Governments, the national network of Small Business Development Centers, the Service Corps of Retired Executives and the WorkSafe Institute of Washington join together under one roof to offer a variety of information, training, counseling, networking and communicating opportunities.

Under this BRC roof, businesses will find a wireless computer lab with free Internet access for research and networking and tons of software to operate and market their businesses. A lot of people use our computers because their dial-up modems at work or at home are too slow and cumbersome. Here they can do in-depth research and even compare notes with others in the same business. We also have a business library of books, videos and how-to binders available for research.

Every month is filled with classes and workshops for business owners, managers and employees. Confidential, one-on-one counseling is available by either our resident EDASC counselor or our local SCORE counselors, part of a national network which is almost sure to have someone representing every industry. At any rate, there are plenty of professional and objective resources to provide you that second opinion. Call 416-7873, visit www.svc-brc.com or stop by 204 W. Montgomery — across from the brewery — to see what other resources are available to help you succeed.

 

County government solid, despite state-level worries

Although there are dark clouds on the horizon for county governments around the State of Washington, here in Skagit County we have adequate reserves and a solid plan for the future. I would like to thank our elected officials, department directors, and staff, for their hard work and responsible actions in 2002, to allow Skagit County Government to maintain our high level of service.

On the State level, how our State Legislature addresses the severe budget deficits they are facing is anyone’s guess. We will need to be prepared in 2003 for possible cuts in state funding for vital services here in Skagit County.

Although we are proceeding with caution in 2003, our status quo budget calls for maintaining the high level of service we provide Skagit County residents. Our local economy has not been as hard hit as other parts of the state. New construction in 2002 was at a record level. Retail sales are projected to grow in the coming year. As the nation’s economy turns around, I expect Skagit County to grow and prosper.

We will continue to maintain your roads, provide public health services, operate the criminal justice system, provide parks and recreational opportunities, administer senior services, and provide permit and planning services for our citizens.

As far as major issues go, we are working hard to comply with the Growth Management Act, while preserving our strong agricultural economy and protecting fish. We are beginning the process for developing sub-area plans throughout Skagit County, and are working with the U.S. Army Corps of Engineers to find a solution to the huge flood risk posed by the Skagit River.

On the national level, Commissioner Ted Anderson, Commissioner Ken Dahlstedt, and I will be active in looking out for the best interests of Skagit County by staying in close contact with our Congressional delegation and serving on key committees with National Association of Counties.

As your Skagit County Commissioner, I hold a great deal of optimism for the coming year, and encourage each of you to participate in the process of local government. Working together, we will accomplish great things in 2003.

 

Research strives to find high-value crops

Washington State University’s involvement in agricultural research in the Skagit Valley goes back to the 1940’s. Today, finding ways to make farming economical and viable is a challenge with urban pressure and foreign competition. Crops grown here in the past, such as peas, are now only rotational crops and provide little or no profit. Change is rapid and profitable niche crops like red potatoes may become unprofitable tomorrow as other regions learn to duplicate these products.

At WSU Mt. Vernon, we are working to identify new high value alternative crops. In 1991 the fruit program was partially cut due to state budget problems. This research identified new alternative crops such as the Jonagold apple and several white wine grape varieties. In tough times, there are very few funds available from growers to support such research, so the urban public has gotten involved. A group of hobbyists, nurserymen, and growers formed the Western Washington Fruit Research Foundation (http://wwfrf.org/) to help support a program on the verge of being eliminated.

This foundation actively supports several projects at the research station. Besides identifying several wonderful varieties that benefit the home gardener, new, potentially high value commercial crops for our area have been found including Taylor’s Gold Comice, a high quality russet pear, that can only be grown successfully in limited areas. Other unique fruit crops include late cherries, plums, hardy kiwis and, in the near future, some high quality peaches. We have also been testing new red wine grape varieties and specialty hard cider apple varieties and have made a lot of progress. For a complete report see our website at http://mtvernon.wsu.edu/-frt_hort/fruit_horticulture.htm. Upon retiring in 2000, Dr. Wilbur Anderson organized the Skagit Vegetable Trials to focus on identifying new vegetable crops. http://mtvernon.wsu.edu/SkagitVegTrials/index.html

Skagit Valley College has also shown interest in revitalizing agriculture in our area. You too can help maintain agriculture in our community; help us develop new alternative crops with your financial support. Donations and memberships to the Western Washington Fruit Research Foundation can be sent to Charlie Bergeron at 7920 88th St Ct SW, Lakewood WA 98498-5906, or to WSU-Mt Vernon, 16650 State RT 536, Mt. Vernon, WA 98273-4768 on the bottom of the check write Alternative crops/Fruit Hort.

And remember. Buy local.

 

Training can keep Skagit workforce strong

Our economy is job number one and it’s not an easy one. A strong economy requires effort and cooperation among a variety of people, agencies and governments – including the federal government. There are a number of ways Congress and the President can contribute to building a stronger economy and healthier business climate.

The first and most immediate way the federal government can strengthen our struggling economy is by extending unemployment insurance for displaced workers who have been hit hard by the recent economic downturn. Unemployment insurance is a temporary economic stimulus that helps families put food on their table and pay their monthly mortgage. For every dollar of unemployment insurance, $2.15 goes into our local economy. Also, there is currently $25 billion in the unemployment insurance trust fund, so an extension would be budget neutral in terms of the national budget.

Meantime, we can attract new businesses by ensuring Skagit County has a strong and skilled workforce through education and training. Two local examples come immediately to mind. Last year I had the pleasure of announcing a grant for Skagit Valley Community College for $835,000 over the next five years. The funding comes from the U.S. Department of Education’s innovative Career Ladder Program, which will help Skagit County be one of the leaders in providing qualified teachers for Washington state.

The second example in which we can all take pride is Sedro Woolley’s Cascade Corps. National Job Corps is an essential program that transforms at-risk, low-income individuals into skilled and self-sufficient workers. Locally, The Cascades Job Corps Program first opened its doors in Sedro-Woolley in 1982. Both national and regional companies rely on graduates from the Cascades program to sustain economic growth. Since then, the Cascades program has contributed over $8.5 million to the local economy of Skagit County.

When considering the economy one cannot underestimate the impact our transportation infrastructure can have on our quality of life, the cost of doing business, and enticing new businesses to call Skagit County home. According to the Federal Highway Administration, every $1 billion of increased investment in transportation infrastructure generates 42,000 jobs. Next year Congress will be re-authorizing the Transportation Equity Act for the 21st century.

I will be working to make sure those jobs come here.

 

Colleges to expand vocational, technical programs

Skagit Valley College is always in an assessing mode reviewing current labor information to direct our future curriculum needs. We are working with economic development councils, the state Employment Service, chambers of commerce, hundreds of community advisory people and other regional colleges (primarily Bellingham Technical, Whatcom and Everett Community Colleges) to shape these programs.

Regional colleges met late last year with representatives of these groups to review regional labor clusters. We identified the following areas for future job growth: health care, construction, business services/information technology, manufacturing, transportation, and education.

Although we currently have training programs in each of these areas, each cluster will be reviewed with additional training options in the future. Truck driving, diesel and automotive, healthcare, human services, firefighter training, culinary arts, electronics and welding continue to be high enrolled programs at Skagit Valley College this year with information technology being very soft.

We have just completed a survey with boat builders to determine labor needs, met with a construction advisory group to get their input, and continue to work with agriculture representatives to integrate agriculture into current curriculum. And I am really excited about a new health care program we hope to have available by fall of next year. It’s title starts with H, which is all I am going to say for now.