HomeMy WebLinkAboutres2002-037WHATCOM COUNTY COUNCIL AGENDA BILL NO. 2002 - 248 A
CLEARANCES Date Date Received in Council Office Agenda Date Assigned To
Orig_Dept.: County Council
7/2212002
1902002
Division Head:
$ l3
Dept. Head'.
Prosecutor:
i 7
Budget
Executive,
SUBJECT.
Res. Accepting 2002 Comp. Economic Dev. Strategy e& approve submittal of draft.
ATTACHMENTS
SUMMARY STATEMENT
Related County Contract k: Should the Clerk schedule a hearing ?(YM) Requested Dale:
Resolution accepting the 2002 Greater Whatcom Comprehensive Economic Development Strategy (CEDS) and approving
submittal of the draft of the United States Department of Commerce Economic Development Administration.
RECOMMENDED MOTION (for final action):
COUNCIL ACTION TAKEN
2002 - 248A 1130/2002'. Held in committee to 8113
8/1312002'. Amended and approved 7-0, Res. #2002 -031
Related File Numbers: Ordinance or Resolution Number (this item only):
SPONSORED BY:Executive Kremen
PROPOSED BY: Executive Kremen
INTRODUCTION DATE: 8/13/02
RESOLUTION NO. 2002 -037
ACCEPTING THE 2002 GREATER WHATCOM COMPREHENSIVE ECONOMIC
DEVELOPMENT STRATEGY (CEDS) AND APPROVING SUBMITTAL OF THE
DRAFT TO THE UNITED STATES DEPARTMENT OF COMMERCE ECONOMIC
DEVELOPMENT ADMINISTRATION
WHEREAS, the Economic Development Reform Act of 1998 identifies a
Comprehensive Economic Development Strategy (CEDS) as a requirement to apply for
assistance under the Economic Development Administration's (EDA) economic
adjustment and public works programs; and
WHEREAS, Public Law 105 -393, implemented in 1999, amends the Public
Works and Economic Development Act of 1965 and re- authorizes Economic
Development Administration Programs for five years; and
WHEREAS, certain areas of Whatcom County suffer from lack of infrastructure
which continues to impede business retention and expansion and requires EDA
assistance; and
WHEREAS, the Economic Development Administration requires that Whatcom
County approve a resolution accepting the draft 2002 Greater Whatcom
Comprehensive Economic Development Strategy (CEDS) and approving submittal of
the draft to the United States Department of Commerce Economic Development
Administration, and
WHEREAS, RCW 82.14.370 requires that projects utilizing rural sales tax
revenue must be contained in the County's overall economic development plan.
NOW, THEREFORE, BE IT RESOLVED that the Whatcom County Council
hereby accepts the 2002 Greater Whatcom Comprehensive Economic Development
Strategy (CEDS) for submission to the United States Department of Commerce
Economic Development Administration.
BE IT FURTHER RESOLVED, that the Whatcom County Council officially
adopts the 2002 Greater Whatcom Comprehensive Economic Development Strategy
(CEDS) as the County's interim overall economic development plan.
APPROVED this 13 day of August , 2002.
ATTEST:
Dana Brown- Davis, the Coun
APPROVED AS TO FORM:
J)M!�C'9
Civil De ty Prosecutor
WHATCOM COUNTY COUNCIL
WHATCOM COUNTY, WASHINGTON
L. Ward Nelson, Council Chair
PART ERSHIP
for a Sustainable Economy
GREATER WHATCOM
GREATER WHATCOM
COMPREHENSIVE ECONOMIC DEVELOPMENT STRATEGY
August 13, 2002
Prepared by the Partnership for a Sustainable Economy
for Whatcom County, Washington
Pete Kremen, Whatcom County Executive
Jim Darling, Partnership Chairman
Partnership Staff?
Stephan Jilk, Economic Development Director
Dodd Snodgrass, Economic Development Specialist
Ann Grimm, Administrative Assistant
This Report was Prepared under Award No. 07 -69 -05104 from the U.S.
Department of Commerce Economic Development Administration
Insert Whatcom County Resolution accepting CEDS
Acknowledgements and Sources
The authors wish to recognize and thank the following for contributions to the product:
• Hal Hart, Sylvia Goodwin and the staff at the Whatcom County Planning and
Development Services Division for consultation and background information on
the county
• All the planners and public works staff representing the seven incorporated
Whatcom cities that reviewed and contributed community information
• The CEDS Advisory Committee membership for review comments and
participation in the process
• Jim Vleming, regional economist for the Washington State Employment Security
Department for economic data and information
• Hart Hodges of the Center for Economic and Business Research at Western
Washington University for data processing and information review
• Marty Wine of Berk and Associates for facilitation services
• Reuben Weinshilboum for research assistance on community infrastructure
• ECONorthwest provided the demographic and economic forecast
• Nancy Jordan of NGJ Associates supplied research and meeting assistance and
compiled community project information
• Henry Bierlink of the Whatcom County Agricultural Preservation Committee for
agriculture information
• Whatcom Council of Government staff for maps and border crossing data
• Karin Berkholtz of the Office of Trade and Economic Development and Sheila
Martin, Policy Advisor for Governor Locke for process suggestions
• Whatcom County Executive Pete Kremen and Deputy Administrator Dewey Desler
for county sponsorship and support of the project
• City Mayors of Whatcom County
• All the economic development service providers in Whatcom County that provided
information on their organizations
• Port of Bellingham Commissioners Walker, Smith and Benton for continued
support of the Partnership for a Sustainable Economy
This publication was prepared by the Partnership for a Sustainable Economy through the Port of
Bellingham. The statements, conclusions, and recommendations are those of the authors and
do not necessarily reflect the views of the Economic Development Administration
GREATER WHATCOM
COMPREHENSIVE ECONOMIC
DEVELOPMENT STRATEGY
Contents Page
Introduction: Developing the Blueprint for Economic Development
Overview and Purpose
The Partnership for a Sustainable Economy 2
Federal Requirements 3
The Process 3
Historical Perspective 7
What this Blueprint is and What it is Not 7
Expected Outcomes g
Terms Used in the Strategy 10
Advisory Committee List 12
Section I - Regional Background
Economic History of Whatcom County
t
Geography
3
Environment
4
Natural Resources
8
Land Characteristics
t t
Whatcom County and Canada
14
Section II - Population and Labor Force
Population Trends t
Labor Force 8
Section III - The Whatcom Economy
Overall Trends in Employment
t
The Natural Resource Economy
4
Major Sectors of the Nonfarm Economy
g
Income Measures
is
Economic Forecast
20
Clustered Industry Development
24
Whatcom County Competitiveness Study
25
Special Need Criteria for Economic Development
26
Contents
Section IV —The Economic Development System
Business and Economic Development Services t
Workforce Development System 12
Capital Facilities and Community Infrastructure 18
Public Services and Facilities 26
Transportation System 29
Energy 32
Communications 33
Grant and Finance Resources 35
Section V — Existing Plans
Local Comprehensive Plans
Local Economic Development Plans 2
Section VI — Creating the Preferred Economic Future
A Vision for Greater W hatcom t
Goal Setting Process t
Strategy Development 6
The Basic Economic Development Blueprint 7
Section VII — Action Plan
Organization of Action Plan t
Goals and Activities are a System t
Example of a Project Prioritization Method 2
Implementation Schedule 3
Project List 3
2002 -03 Action Plan: 25 Actions Started or Recommended 4
Section VII — Evaluation
Appendix: Project List
INTRODUCTION
Developing the Blueprint for Economic Development
A. Overview
As state and federal resources have become scarcer, the need for broader collaboration,
coordination and prioritization of economic development projects has increased. Federal
agencies and the state of Washington are encouraging local jurisdictions to work together to
create economic development programs.
A Comprehensive Economic Development Strategy (CEDS) is a strategy for Whatcom County
(or Greater Whatcom region) about how the economy can be enhanced, stay strong or be
stronger, and evolve into the future. It is a "blueprint" that guides the economic development
growth of the county by offering a vision, data, goals, and specific strategies for reaching those
goals. It is the base plan for defining the preferred economic future, while maintaining and
enhancing the quality of life in the county. In short, it helps us become a smarter, more strategic
county.
B. Purpose
The purpose of the CEDS is to create a plan for retaining and creating better paying jobs,
fostering stable and more diversified economies, and maintaining and improving the quality of
life in Greater Whatcom. The planning process, managed by an advisory committee, provides a
mechanism for ongoing coordination between individuals, not -for profit organizations, local
governments, private industry and other parties concerned with economic development. It is
also a continuing program of communication and outreach that encourages local goal setting
and action, public engagement and participation, and a commitment to local and regional
cooperation.
The foundation of this document comes from the communities that make up Whatcom County.
This includes:
• The county government and unincorporated communities
• The cities of Bellingham, Lynden, Ferndale, Blaine, Everson, Sumas and Nooksack
• The Lummi and Nooksack Tribes
• Private sector, labor, non - profits and environmental interests
• Local partner agencies in economic development, such as
• The Economic Development Council
• Chambers of Commerce
• Port of Bellingham
• Public Utility District #1 of Whatcom County
• Small Business Development Center
• Workforce Development Council
• Higher education institutions in the county
Introduction
Page 1
Many Whatcom communities have developed local economic development plans. This plan
builds upon existing economic development efforts, goals, and strategies providing overarching
support and connectivity for those efforts.
C. The Partnership for a Sustainable Economy
The Greater Whatcom Partnership for a Sustainable Economy is an initiative of government
leaders that works with residents, communities and all economic sectors of the Whatcom
community to create and support a healthy and diversified economy for its residents.
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.
A task force representing municipal and private sector managers recommended the formation of
a community partnership to lead decision - making on these issues. This task force identified
several examples of positive and energetic economic development efforts related to the
community that lacked connectivity to each other.
The Partnership is intended to be an ongoing dynamic initiative that creates and supports a
vision of the future and provides connectivity between the many existing efforts in achieving that
vision. This initiative embraces the following principles fundamental to its success:
• It is an inclusive process intended to link all community, political and social sectors of the
area.
• It aspires to achieve as much community support as possible by educating both the
involved and disengaged members of our community.
• The Greater Whatcom Community must be considered a regional economic unit,
regardless of political or physical boundaries, that promotes cooperation over
competition to leverage regional resources.
• An understanding that the conditions attractive to business recruitment, retention, and
expansion are generally the same conditions which contribute to the preservation and
enhancement of community and environmental vitality.
The Partnership's founding partners are the seven incorporated cities in the county, Whatcom
County, the Port of Bellingham and Whatcom Public Utility District #1. The Port of Bellingham
provides the financial support, offset by any grants and contributions, for the operation of the
Partnership.
Under contract with Whatcom County government, the Partnership is providing management,
coordination and development of this CEDS. A U.S. Economic Development Administration
planning grant along with funds from the county's rural sales tax program provided funding for
the project.
Introduction
Page 2
D. Federal Requirements
The U.S. Economic Development Administration (EDA), a division of the United States
Department of Commerce, defines the CEDS and process for creating it. Whatcom County is
in Region X based in Seattle
States, counties, or groups of counties in the EDA regions that prepare CEDS documents are
eligible to compete for federal money through the EDA. The document meets the statutory
requirement that public works and business development projects funded by the agency be
consistent with an approved, area -wide overall program for economic development. Official
approval of the CEDS document is one of the prerequisites for designation as a redevelopment
area, the step necessary to make Whatcom County eligible for public works and business
development projects. Congress provides funds through the EDA to support economic
development projects, which are deemed to create jobs and industrial/economic diversification.
Completion and approval of an annual report continues the area's eligibility for program benefits
provided under the Public Works and Economic Development Act of 1965 and related acts
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, they may also expand their plans on certain strategies or issues important to the area
as long as the process and outcomes do not conflict with the guidelines. The actual
development of the plan must be overseen by a steering committee that represents the broader
community.
While a document must be prepared annually to compete for these federal funds, a county is
not mandated to do so if it does not wish to seek funds in any given year, or if it does not wish to
have an overall strategy. More and more states, however, look for a CEDS to be in place in
their counties as one of their own funding criteria. This is true in the State of Washington for
certain state sources of funds that support economic development, such as the Community
Economic Revitalization Team process (WA- CERT).
For example, the Washington State Office of Trade and Economic Development (OTED), the
lead state agency for economic development, recently completed an analysis of 164
community/economic development plans, including CEDS. According to the report, seven of
the plans exhibited qualities of very good comprehensive strategic thinking. In these plans, not
only did the community name its strengths and opportunities on how to minimize or mitigate
weakness, it also identified specific strategies and projects to help them reach the collective
vision for the future. The top plans, according to OTED, used the CEDS as an overall
coordinating process.
In addition, a number of counties are looking at a complete integration of their comprehensive
land use planning efforts where the CEDS is the economic development element of their
comprehensive plan under the Growth Management Act. The list of prioritized projects for
WA -CERT is also their list of priorities for other public investment processes. The Greater
Whatcom CEDS will serve as input to Whatcom County's comprehensive plan update, and will
be a platform for a regional public investment strategy.
Introduction
Page 3
Guidelines for Creating the Report
Although each area's development plan will be unique, all successful development programs
must contain the following elements:
1. Areas must establish and maintain a committee to oversee the CEDS process. The
committee is the principal facilitator of the economic development planning process. It
should represent the major areas of the community including local elected officials,
economic and community development, employment and training, and Community of
Interest, such as agriculture, environmental, tribal and non - profit social service.
2. The document must include an analysis section that assesses "Where are we ?" This
includes elements such as a background and history of the economic development
conditions of the area, an analysis of economic and community development problems,
and opportunities and identifying partners and resources for economic development.
3. The document must include the vision, goals and strategies meant to address'Where do
we want to be ?" The report will discuss using tools involving committee and community
participation to respond to the analysis of the area's development potentials and
challenges. These three items will provide the framework for public and private
decision - making and serve as the basis for the action plan.
4. The CEDS must have an action plan that answers the question "How do we get there ?"
and is based primarily on meeting short-and long -term strategies by implementing
specific projects. It should include a prioritization of programs and activities, an
implementation schedule, and suggested projects from communities.
5. The report must have an evaluation element that will answer the questions "How are we
doing ?" and'What can we do better ?" This involves an annual review and update
process that may include performance measures to evaluate how goals and objectives
are being met
Advisory Committee Role
Preparing the CEDS document and the ongoing development program it charts is the primary
responsibility of an advisory committee. As a representation of the community, it must work to
see that all viewpoints are considered in its discussions and decision making and that local skills
are involved in program formulation. The advisory committee is typically made up of the
principal coordinators of the various activities undertaken locally to stimulate new private and
public investment and provide permanent employment and growth opportunities in the area.
The Greater Whatcom CEDS advisory committee includes 25 members. The Partnership for a
Sustainable Economy appointed members of the committee. Port of Bellingham staff provides
the management and technical preparation of the report. The charts on Page 5 and 6 show
organizational development and the steps and timeline for completing W hatcom's plan.
The process will be ongoing. After the completion of the base plan it will be updated, improved
and implemented, including the development of a coordinated process for activity prioritization.
Introduction
Page 4
Developing the Comprehensive
Economic Development Strategy
What are our region's most important economic development Issues?
• Strength, Weakness, Opportunity , Threat (SWOT) assessment by Advisory Committee
*Interviews with 24 community leaders (private, non prof¢, and public sector
• Already - completed local economic development plans
*Existing vision from Partnership
Based on these / Vision throe Partn spry
issues, where Vision through Advisory
should we focus Committee discussion
our efforts? ._. ............. .._.:.
6 Regional Goals
• Rei of exiwag local economic
-0eveloprpent plans Il -
• Advisory. Committee SWOTanalysis
What specific • 24 Community Leader interviews
actions are • Discussion and confirmation by full Advisory
needed to reach Committee
our goals? .._....._......
Economic Development Strategies
Developed by sub- pop of Advisory Committee based on:
• Preliminary draft strategies by Advisory Committee
• Refine by subgroup of Committee based on the same inputs as goals, plus
information from Area and Economy draft
• Economic Strategy Workshop (March 19, 2002)
Blueprint Vision, Goals and Strategies
Introduction
Page 5
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Submitting the CEDS for Approval
Once the document is completed in July 2002, the approval process begins. Appropriate
governments and groups interested in the development of the area should review the CEDS.
During the course of drafting the document, a variety of local stakeholders supplied information
and reviewed materials included in the document.
For the Greater Whatcom plan, the following adoption procedure will occur:
1. Adoption by the CEDS Advisory Committee.
2. Approval by the Partnership for a Sustainable Economy.
3. Acceptance by the Whatcom County Council, which will incorporate the document by
reference to update the comprehensive plan's economic development element.
4. Transmittal of the CEDS by Partnership/Whatcom County to the EDA.
5. Other copies will be provided to various state and federal agencies involved in economic
development, in particular the OTED and congressional representatives.
6. The EDA Regional Office will review the CEDS. The plan's quality and adequacy will be
measured as a guide to local decision - making.
7. The document will be distributed locally to cities, economic development partner
organizations, and the general public.
6. After the initial document is created it will be reviewed and updated annually.
E. Historical Perspective
The Overall Economic Development Program (OEDP) in Whatcom County was under the
direction of the Whatcom County Council of Governments (COG) since the creation of the
program in 1966. Yearly updates were made until 1988, when they were terminated because of
shifting priorities and limited resources within the COG. There were no OEDP plans prepared in
1989 or 1990.
In 1991 the Fourth Corner Economic Development Group, in conjunction with the COG,
prepared an OEDP at the request of the City of Bellingham. That document was updated
through 1993. Since 1993, the Whatcom County area has not had a current overall or
comprehensive economic development strategy. In 1998, with the reauthorization of EDA by
Congress, the process was renamed Comprehensive Economic Development Strategy.
In 2001, the county and several local jurisdictions recognized the need to revisit the OEDP to
consider present community and economic needs and bring the county and the communities
into compliance with current EDA standards. The Partnership members initiated the current
CEDS updating process.
F. What this Blueprint is and What it is Not
The emphasis of the 2002 CEDS is to identify economic development issues and opportunities
and suggest a range of actions. As a blueprint, the intent is to have a base framework that can
be built upon each year as the economic development planning process is refined. Another
basic function of the CEDS it to identify capital improvements and other projects proposed by
the jurisdictions of Whatcom County that may be eligible for U.S. EDA or other state and federal
sources of funding.
Introduction 8/26/02 Pago7
Fundamentally, the blueprint is an "economic development plan" not a "plan for the economy."
By analogy, it will tell us what kind of car we need to build and drive down the road, not describe
the maximum speed, gas mileage and maintenance schedule to keep the car running. But if we
can drive the vehicle and understand how all the parts work we can become better mechanics.
The economic strategies incorporated reflect the views, perceptions, needs and opinions of
diverse public and private interests within the Whatcom County community at large.
Techniques to capture community input included the advisory committee assessment process,
community and business leader interviews, and compilation of existing local economic
development plans in effect since 1999. This provided the input for a regional vision and broad
economic development goals. Strategies and specific actions were then developed and refined
after additional community involvement. Community involvement helped identify and refine
strategies. A prioritized action plan will be a continuing work product as a process is developed.
The CEDS is intended to put forth economic development alternatives for W hatcom County that
will support job creation, with an emphasis on higher wage jobs and diversification. It also
intends to recognize environmental considerations, assets and liabilities of the county, resource
issues, and quality of life factors. Therefore, the CEDS goals support a two -part principle:
1. Growing employers, jobs and incomes
2. Without compromising our natural assets
The output of the CEDS may be used by the jurisdictions of the county as they prepare land use
policies that have economic development relationships. Though the plan may influence local
legislative enactments by jurisdictions (for example, ordinances governing land use), it is a set
of recommendations for reference only and does not by itself direct, mandate or control
legislative impacts. This is not a regulatory document. As such, jurisdictions may reference and
draw upon the CEDS as they prepare growth management policies and comprehensive plans
mandated by the State of Washington's Growth Management Act.
Finally, the CEDS does not pre- suppose local priorities for economic development. It does not
replace local decision - making, but supports the integration of local planning efforts into a
regional perspective, which is a preferred approach by state and federal funding agencies. It
takes into consideration what communities have identified and reinforces the planning efforts of
partner organizations in economic, business and workforce development. Alternatively,
agencies and organizations involved in economic development are free to draw upon the CEDS
to assist their missions.
G. Expected Outcomes
Strategic economic development is a process. The 2002 document will provide a platform for
ongoing development. By bringing together multiple interests for economic development, the
blueprint provides an avenue for regional and local coordination related to economic
development.
The near -term products of the Greater W hatcom CEDS include the following:
• It will provide a resource of information for communities, economic development
service providers and businesses about the W hatcom County economy and
development issues.
Introduction &26/02 Page
• It will serve as the action plan for coordinating Washington State funding programs in
the county, starting with the Washington Community Economic Revitalization Team
(WA- CERT), and potentially the 0.8% Rural Sales Tax Program prioritization. Ina
larger sense it will be the basis for a countywide Public Investment Strategy.
• With an approved plan, the county and its communities will be eligible to apply for
EDA program funding.
• The CEDS process and recommendations will parallel a newly proposed program by
the Washington OTED called Certified Community Initiative, which may open a range
of opportunities for Greater Whatcom development
• The document is the source for updating the economic development component of
W hatcom County's comprehensive plan and a resource for community
comprehensive plans.
Longer term, the vision, goals and strategies presented in the document will have the following
positive impacts throughout Greater Whatcom:
• Better paying jobs will be created and retained
• More stable, balanced and diversified economies will develop.
• Natural resources will be sustained and protected for generations to come.
• Quality of life and living conditions will be maintained and improved 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, many, if not all of the goals identified in the
Comprehensive Economic Development Strategy can be achieved.
nt o ualon srztuoz Page 9
H. Terms Used in the Strategy
Economic Development
Many definitions of economic development exist. Some sources suggest that economic
development is better described than defined. Definitions can be characterized by cause and
effect. The cause is usually an assortment of strategies, programs and projects. The effect is
increased economic opportunity through a measure such as job creation, retention, expansion
and attraction. The mantle of "sustainability" is intended to keep economic growth in check with
available resources.
Examples of definitions include:
• A program, policies or activities, and projects that seek to improve the economic
well -being and quality of life for a community. Ideally, it will create and retain jobs
that facilitate growth and provide a stable tax base.
(Washington Office of Trade and Economic Development)
• Increase wealth creation by building a dynamic and supportive environment for
business and enable our people to participate in the economy and maximize their
potential, while ensuring that we protect and enhance our physical environment.
(a small British community)
For purposes of this blueprint, the advisory committee developed this operational definition of
economic development:
Programs and activities to improve the economic well -being for the area by
building a growing and diversified employment base and enabling people to
participate in the economy, while preserving and enhancing community and
environmental vitality:
Actions will be carried out through partnerships with other
governments, community interest groups, local economic development
organizations, and local business associations throughout Whatcom
County
Programs and activities may include but are not limited to public and
private capital investments, business retention/attraction /expansion
programs, planning and technical assistance to communities,
workforce training and education.
Jobs and growing incomes for residents are the desired outcome.
Introdudion 8/26/02 Page 10
Sustainabilitv
While there may be some agreement on the meaning of sustainability, what is not clearly
agreed upon is the degree of the term or how it will be carried out. Examples of published
definitions include:
• Using, developing, and protecting resources at a rate that enables people to meet
their current needs while providing for the needs of future generations.
(Dept of Sustainable Community Development, Multnomah County, OR)
• The goal of community sustainability is to establish local economies that are
economically viable, environmentally sound and socially responsible.
(Sustainable Communities Network).
The advisory committee's operational definition of economic development integrates the
philosophy of sustainability through "preserving and enhancing community and environmental
vitality." For the purposes of the Greater W hatcom CEDS, the committee accepted the
Partnership for Sustainable Economy's vision as its operating definition of sustainability:
Through collaboration of local community, business, and governmental interests,
we aspire to meet the needs of current generations without compromising the ability
of future generations to meet their own needs.
The advisory committee, reinforced by community input, recognizes that broader community
discussion on the implementation of sustainability is required.
The Region
This blueprint is a regional plan. It encompasses all of W hatcom County not only as a political
jurisdiction, but also as a composition of communities. The derivation of "Greater Whatcom" is
to think beyond the county as a political body and as a regional economic unit. However, while
the regional economic system can be described and measured within the boundary of the
county, it is far more complex. W hatcom County is often characterized as being the center of
an economic and transportation region stretching from Vancouver, B.C. to Seattle, Washington.
Introduction 8/28/02 Page 11
Greater Whatcom
Comprehensive Economic Development Strategy
Advisory Committee List
Name
Byron Manering (co-
Community Affiliation
Whatcom Council of Nonprofits
Position
Executive Director, Brigid Collins
chair
House
Troy Mullet
co -chair
Whatcom Realtors Association
President
Fred Sexton
Bellingham Whatcom Economic Development
President
Council
Dale Kinsle
Bellin ham School District
Su erintendent
Gerald Pum hre
Bellin ham Technical C011e a
President
Mike Brennan
Bellin ham - Whatcom Chamber of Commerce
Director
John Cooper
BellinghamNVhatcom County Convention and
Executive Director
Visitors Bureau
Steve Price
City of Bellingham
Office of Neighborhoods &
Marc Ta for /Evan Morse
Lummi Indian Business Council
CO mmunit Develo ment
Economic Develo ment
Carole Macdonald
Mt. Baker Foothills Chamber
Director
Kevin Ho an
Nooksack Tribe Economic Develo ment
Executive Director
Mike Murphy
Public Utility District #1 of Whatcom County
Commissioner
Kath Larson
Puget Sound Ener
Gov /Communit Relations Director
Tom Dorr &
Small Business Development Center- W W U
Director and
Me an Watt
Business Development Specialist
Jim Ackerman
Small Cities Caucus
Ma or of Nooksack
Bill Verwolf
Small Cities Caucus
Cit Administrator, L nden
Jim Miller
Whatcom Council of Government
Director
Todd Sewell
Whatcom Agriculture Preservation Committee
Board Member
Pamela Jong
Whatcom Coalition for Health Communities
Director
Harold Heiner
Whatcom Communit Colle a
President
Hal Hart
Whatcom Coun Government
Director of Plannin &Develo ment
Ga Dubi k
Workforce Develo ment Council
Executive Director
Mr. Robin Dexter
Water Resource Inventory Area #1
Environmental Caucus Member
Dr. Geor a Pierce
Western Washington University
VP, Business & Financial Affairs
Dodd Snod rass
Port of Bellin ham Staff
Economic Development S ecialist
Ann Grimm
Port of Bellingham Staff
Administrative Assistant
IntroduMion 8/26102 Page 12
SECTION I: REGIONAL BACKGROUND
A. Economic History of Whatcom County
The earliest inhabitants of present day Whatcom County were Native Americans including the
Lummi, Samish, Semiahmoo, and Nooksack. They subsisted off the region's wealth of fish,
shellfish, berries and root vegetables. The Spanish are believed to have been the first
European explorers in the region. In 1592, a Greek known as Juan de Fuca sailed for Spain in
the exploration of the North Pacific. The first well- recorded voyage by the Spaniards in this
region was the Eliza in 1791. The British followed the Spanish. In 1792, Captain George
Vancouver charted a natural deepwater inlet and named it Bellingham Bay in honor of Sir
William Bellingham, Controller of the British Navy. Vancouver gave the current names to other
geographic regions including Mount Baker and Point Roberts.
In June of 1846, the ratification of the agreement with the British by the U. S. Senate designated
the 49 parallel as the division between present day Canada and the United States. This gave
the U.S. the formal possession of Point Roberts.
Fur trappers, traders and missionaries traveled the area, but permanent settlement did not
occur until gold and coal was discovered in the 1850s. In time, settlers were finding their way to
Bellingham Bay. Rapid settlement of the area prompted the Washington Territorial Legislature
to establish Whatcom County on March 9, 1854. The county got its name from the Indian term
Whatcoom, which means "rough tumbling waters."
Timber and agriculture: As new settlers reached the shores of Whatcom County — mostly at
Bellingham Bay — they discovered dense stands of virgin Douglas fir extending from the
shoreline into the mountains. It was clear that the stands would have to be felled before farming
could proceed. Consequently, the county's early logging and lumber industry was born. In
1852, Henry Roeder and Russell Peabody, assisted by the Lummi, built the first sawmill. The
settlement built around it was called Whatcom. The timber industry expanded over the years to
include more than 70 sawmills, over 100 shingle mills, and numerous logging camps. In 1907,
Bellingham Bay Lumber Company was one of the worlds largest sawmills.
As the land (particularly around Bellingham Bay) was cleared of timber, farming settlements
began producing milk, berries, graphs, corn, peas and hay. Whatcom County once produced
one -third of all dairy products consumed in the Puget Sound region. Agriculture remains a
prominent industry in the county today.
Gold Rush: During the summer of 1858, Whatcom County's population and economy boomed
when gold was discovered in the Fraser River region. Thousands of prospectors set their sights
on the area. It is estimated that between 75,000 and 100,000 people arrived that summer.
Several towns were platted along the Bay during the gold rush, most notably Sehome (May
1858) and Whatcom (July 1858). They lay adjacent to the small town of Bellingham. Fairhaven
was platted much later in 1883. All four were merged under the common charter of the city of
Bellingham in July 1904.
Coal mining: The gold rush was over almost as soon as it began. The exodus left ghost towns
in its wake. It was coal — not gold — that proved to be the most stable mineral source within the
region.
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Page I.1
A substantial deposit of coal was discovered as early as 1853 - five years before the gold rush -
but the allure of gold all but obscured this news. In the end, it was coal that rejuvenated the
bayside communities when the subsequent gold bust threatened to turn them into ghost towns.
The Bellingham Bay Company was the largest coal mining operation in the state from 1918 until
its closure in 1951.
Railroads came to Whatcom County in the 1870s and 1880s, producing the Seattle -
Bellingham- Vancouver rail line. Other lines were extended between the town of Whatcom and
Burrard Inlet (present day Vancouver) and between the Blue Canyon mines near Lake
Whatcom and Bellingham Bay.
County settlement: Several communities were developed in Whatcom County during the mid -
late 1800s. The Blaine area was settled in 1856 during the U.S. Boundary Survey Commission's
delineation of the 49th parallel. In the mid- 1800's the voting precinct of "Jam" was established
and is the origins of the present day City of Ferndale. The area that encompasses the City of
Nooksack was originally platted on Sept. 16, 1865 as the Village of Nooksack. Lynden was
platted by Holden and Phoebe Judson in the early 1880's. Sumas, which means, "land without
trees ", was incorporated in 1891. The plat for the City of Everson, which derives its name from
Norwegian -born homesteader Ever Iverson, was recorded at the Whatcom County Auditor's
office in September of 1892. These municipalities were developed for diverse economic
reasons. These include logging, mining, rail transportation, fishing and fish processing (the
Semiahmoo Spit became the location of the first salmon cannery in Whatcom County in 1881),
and agricultural endeavors.
Fish processing became a major industry. The first cannery was built in 1886 on Lummi
Island. By the turn of the 20'" century, there were 12 canneries operating within the county,
employing over 5,500 people. In 1905, however, the fish - canning machine drastically reduced
the number of workers needed. In 1934, overly effective fish traps were banned, forcing a
number of canneries to shut down. During the 1940s, Fairhaven -based Pacific American
Fisheries was the largest salmon canning company in the world.
Education also proved important to Whatcom County's economy. The town of Sehome built
the Northwest's first high school in 1890. Later, the State Legislature appropriated funds for
New Whatcom Normal School. Construction began at the Sehome Hill (presently Bellingham)
site in 1895, with the school opening in 1899. The school became Western Washington College
of Education in 1937, Western Washington State College in 1961, and finally Western
Washington University in 1977. Bellingham Technical College was founded in 1957 and
Whatcom Community College in 1970.
Industrialization: Whatcom County's economy has diversified from the natural resource
industries that founded the local economy. Agriculture, fishing, and forestry/wood products are
a smaller component of the local economy than in the past, while light industry and service -
producing businesses have grown.
During the 1950s to 1970s, manufacturing of paper, chemicals, oil refining, aluminum, and food
processing helped diversify a base that was almost entirely lumber and wood products. During
the 1980s and 1990s, more customized and technology -based industries such as instrument
production, industrial machinery and equipment, plastics and electronics have rapidly expanded.
Today, manufacturing and construction industries, and a fractional amount of mining, are 23
of the Whatcom economy based on employment.
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The largest employment gains have come in the retail trade and service sectors. Most of the
gains in retail trade came during periods of favorable U.S. Canadian currency exchange rates.
The trend resulted in frequent cross - border shopping by Canadians for consumer goods and
gasoline. Bellingham benefited from this trend, and built a strong retail goods center around this
expanded market. By 1991 the Canadian dollar weakened considerably, making cross - border
shopping less attractive. Retail trade has abated somewhat in recent years but still remains an
important export component of the economy. Retail and wholesale trade is 26% of local jobs.
Canadian investment in the Whatcom County economy, particularly in manufacturing and real
estate, has and continues to be essential to economic growth. The terrorist events of
September 11, 2001 and subsequent border security measures created new risks for continuing
trade development by Canada in the local economy.
Service industries have become the largest share of the local economy and have grown the
fastest over the last couple of decades. Heath care dominates this sector. St. Joseph Hospital
in Bellingham is the second largest employer. Social services, business services, and
membership organizations are also dominant industries. Services account for 26% of the local
economy.
Finally, government, finance and transportation make the balance of the Whatcom economy.
Many of the largest employers in the county are in education and local government. These
sectors account for 25% of nonfarm jobs.
Sources: "Whatcom County Profile," Washington State Employment Security Dept, March 2001, research assistance
by GeoSpatial Resources and updates based on information about the present economy.
B. Geography
Whatcom County is located in the most northwest corner of Washington State. The county is
2,120 square miles or 3.2 percent of the state's land mass, ranking 12'" in physical size among
the 39 Washington counties.
The county is a long, rectangular- shaped jurisdiction bounded by land in three directions and
water on the west. Skagit and Okanogan counties border the county to the south and east,
respectively. The county's northern boundary coincides with the 49th Parallel, the longitude that
delineates the U.S.-Canadian border. The county is bounded to the west by both the Strait of
Georgia and Rosario Strait. The Strait of Georgia lies off the county's northern shoreline,
separating it from several Canadian islands, including Vancouver Island. Rosario Strait lies off
the county's southern shoreline, separating it from parts of Washington's San Juan Islands.
The county jurisdiction includes three islands: Lummi, Portage, and Eliza. Point Roberts is a
unique geographic landmark in the county; a peninsula cut by the 49t" Parallel, accessible by
land only by passing through lower British Columbia.
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
terrain is increasingly elevated as it extends east toward the foothills of the Cascades. The
terrain in the eastern two- thirds of the county is rugged mountains and dense forests. In fact, the
entire area is part of either Mt. Baker National Forest or North Cascades National Park, totaling
877,000 acres. The highest elevations in the county are in the eastern portion. They include
Section
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Mount Baker (10,778 feet), Mount Shuksan (9,127) Mount Redoubt (8,956 feet), Jack Mountain
(8,928 feet) Mount Challenger (8,236 feet), and American Border Peak (8,026 feet).
The Nooksack River is the principal river in Whatcom County. From high in the Cascades, the
North Fork of the Nooksack flows westerly through the county before emptying into Bellingham
Bay. During the course of its journey, waters from the Middle and South Forks join the river.
Most notable of the county's numerous lakes are Ross Lake in the eastern part of the county,
Baker Lake in the central part of the county, and Lake Whatcom in the western part of the
county.
C. Environment
Most Of the information in the Environment and Natural Resource sections is provided directly from
background information sections in the "Whatcom County Comprehensive Plan, "November 23, 1999
revision.
The mountains of Whatcom County, as well as the streams, lakes, valleys and hills, are the
result of millions of years of geologic events. Over 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 10,000 years ago. Two main glacial advances are the most important to the area,
the Salmon Springs glaciation and the later Vashon glaciation. Each time the massive glacier
advanced, it 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. Buff lehead 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 location, climate and geology of Whatcom County combine to create many natural hazards
to people and their developments. The major natural hazards include 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 movements.
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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.
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 of
our rivers and streams. The Nooksack River floodplain alone covers 38,000 acres in Whatcom
County.
Volcanic Activity: The presence of Mt. Baker and its 10,778 -foot peak is one of the dominant
features of Whatcom County's landscape. However, Mt. Baker is also considered one of the
most potentially active volcanoes in the Cascade Range.
Earthquakes: Whatcom County lies within the influence of a major earthquake fault area off
the coast of western North America (Cascadia subduction zone). The zone has the potential for
generating magnitude eight or greater earthquakes every 500 -600 years.
Mining: Mine hazard areas are sites of abandoned underground mine shafts, adits, and mine
tailings. Coal mining was a major industry in Whatcom County in the early part of the century
and several major mines were developed in various parts of the county.
Natural Disasters and Emergency Preparedness: Whatcom County has the organizational
infrastructure to plan for and respond to natural disaster events.
The Division of Emergency Management in the Whatcom County Sheriff's Office is responsible
for developing and maintaining a community infrastructure for emergency disaster mitigation,
planning, response, and recovery. The services provided include public education, training of
the response community, developing plans, and building teams of responders. The Division
works with emergency responders, volunteers, and others to maintain a constant state of
readiness. The Division is the designated "Community Coordinator" for the Local Emergency
Planning Committee, and works with local business and industry to ensure compliance with the
Emergency Planning and Community Right -to -Know Act.
Following severe floods in 1989 and 1990, Whatcom County created a countywide Flood
Control Zone District, encompassing all jurisdictions within the county boundaries. The county
government provides governance and administration with staffing from the Public Works
Department. 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, the county 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
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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 250 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.
Groundwater is contained in aquifers, which are subterranean layers of porous rock or soil.
Most aquifers are replenished by rainwater, though some may contain water trapped during
glacial periods. Aquifers are often integrally linked with surface water systems and are essential
for meeting in- stream and out -of- stream water needs such as drinking water, agriculture and
industry.
Rainfall that does not soak into the ground or evaporate is regarded as surface water and runs
into drainage courses, streams, wetlands, rivers, lakes and the Strait of Georgia. Natural
drainage systems have many important functions, including storing excess water flow, purifying
surface water, recharging groundwater, conveying water and supporting important biological
activities. As more areas in Whatcom County are being urbanized, natural water resource
systems are being replaced with built systems.
Watershed Planning
To help address increasing concerns associated with water availability of sufficient quality and
quantity for social, economic, and environmental sustainability, the state legislature enacted the
Watershed Management Act in 1998. Codified into state law as RCW 90.82, the Act
encourages citizens, through their local governments, to address their water resource needs
from a watershed perspective.
This bill affects Whatcom County by establishing in its boundaries Water Resource Invento
Area No. 1 (W RIA 1), which encompasses the surface and groun ry
d water in the Nooksack River
basin and certain adjacent watersheds. More information on this local process to create a
watershed management plan can be found on the Whatcom County web site
http:Owrial project wsu edu
The W RIA 1 project brings together citizens, local governments, tribes, and state and federal
agencies to develop plans for allocating water, protecting water quality, and restoring fish
habitats. A computer -based decision support system is being developed to integrate modeling
efforts for each of these categories of water concern. This system will aid future local planning
for sustainable economic development by providing additional technical tools for decision
makers to compare and select alternative water management strategies for Whatcom County.
As part of this collaborative watershed management project, socioeconomic analyses are also
underway to aid in development of the first version of the watershed management plan due in
June 2003.
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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 State.
There are a number of factors that have contributed to this: abundant water resources, rich
soils, mild climate conditions, and a moderate degree of urbanization are 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.
Threatened and endangered species: In 1999, the National Marine Fisheries Service listed
Puget Sound Chinook salmon as a threatened species under the 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 elevated to the "endangered" listing. These fish are
present in the waters of Whatcom County, primarily the Nooksack River and its tributaries.
In January 2000, the governors of California, Oregon and Washington requested disaster
assistance stemming from the coast -wide curtailment of the groundfish fisheries (rockfish,
founders, cod, whiting and halibut). While not listed species, the impact of the decline of these
species created congressional support for $1.5 million is disaster assistance for Washington
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coastal communities for a Community Diversification Program. Bellingham and Blaine are
eligible communities.
D. Natural Resources
The growth and harvest of farm products, re- generation 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
Agriculture has been practiced in Whatcom County since long before Euro- American settlers
arrived. Native American peoples developed and cultivated root crops in the natural prairies
along the Nooksack Valley, where sub - irrigated meadows were ideal sites for such plants as
camas and "Indian carrot." Euro- American settlers expanded the area under cultivation, logging
and planting crops on thousands of acres of forestland.
Agricultural lands are an important resource to the people of Whatcom County and Washington
State. Yet these lands are often considered available for urban or other rural uses. Often the
conversion process begins when rural uses encroach onto agricultural land, creating smaller
parcels, more buildings, and activities that, in some cases, are incompatible with agriculture. In
many cases, this blurs the line of distinction between agricultural and other uses, and sets the
stage for further conversion of the limited agricultural land base in Whatcom County.
Maintaining such a large contiguous land base sometimes requires preservation within the
agricultural resource land area some lands that are not well suited to actual production of crops.
These preservation areas may best be used for building sites, windbreaks, specialty crops,
livestock wintering and forestry. Thus it is important to consider both the size and the
configuration of the agricultural resource area to provide long -term stability of the agricultural
resource and support industry economy.
In 1949, roughly 200,000 acres of land were reported to be in farm production in Whatcom
County. Since that time, land in farm production has declined. In 1997 agriculture accounted
for 103,600 acres, a decline of nearly half of Whatcom County's productive land.
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.
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The forest resources 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 20"
Century now support commercially mature stands of timber. In addition, a few areas of original
forest still remain.
The majority of the county's non - federal forest resource lands (about 250,000 acres) are located
in the Mt. 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. The State of Washington
manages about 94,000 acres of timberland in Whatcom County for a variety of public trusts,
including state schools and universities, capital buildings, state and local governments. 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 farm /foresters, some of who reside on their properties. An additional
108,514 acres of land in lowland Whatcom County is supporting stands of commercial timber,
but is not necessarily managed for 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 and gravel, limestone and olivine. In 1993
approximately 1.5 million cubic yards of sand and gravel from upland pits were excavated in
Whatcom County. Historically, extraction of river gravel had occurred primarily on the banks of
the Nooksack River between Deming and Lynden (determined by aggregate size and
composition.) Limestone is mined in the Red Mountain area north of Kendall, and is primarily
used for riprap to mitigate effects of flooding, for crushed rock, and for pulp mills. Limestone
mining has decreased significantly over the years. Whatcom County is home to one of the
largest known deposits of olivine — a type of gemstone -- in the United States.
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:
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• 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. Therefore, state and
federal assistance is usually required to finance projects.
The State and National Environmental Policy Acts (SEPA and NEPA) govern and intend 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.
To help build public understanding, more information could be obtained through a land use
survey of all commercial and industrial designated land in cities and around the county. This
would help identify constrained areas, communicate that reality to developers early in the
assessment process, and provide local planners information to re- designate or restructure
commercial /industrial land use categories and zoning.
In addition, the Washington Competitiveness Council, an initiative by Governor Gary Locke,
identified 'a complicated and fragmented systems implemented by numerous regulatory
agencies" in identifying barriers to economic development in the State of Washington. Efforts
like this are underway to make the regulatory system work better for both those it protects and
those it regulates.
Environmental Planning and Restoration Projects
In addition to the Water Resource Inventory Area I process other examples of efforts underway
in Whatcom County to protect and manage environmental resources include the following:
• Bellingham Bay Demonstration Pilot Project —To clean -up contaminated sediments,
habitat restoration, source control and land use in Bellingham Bay.
• Whatcom County Marine Resources Committee —To restore near - shore, inter tidal
and estuarine habitats, improve shellfish harvest areas, support salmon and bottom fish
recovery, and seek establishment of marine protected areas.
• Shellfish Protection Districts — To primarily seek protection and restoration of shellfish
beds in Drayton Harbor and Portage Bay. This effort will help recover a viable local
fishing industry in shellfish harvesting.
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This blueprint recognizes that these and other local efforts that exemplify public and private
partnerships can work collaboratively with sustainable economic development strategies. Over
time, economic development planning needs improved integration with these processes.
E. Land Characteristics
Ownership and Use
A snapshot of land ownership and use in the county show there are limits to the amount of
privately owned and developable property in comparison to the total county land mass.
Ownership is divided between public, tribal and private. Land use is based on standards of the
County Assessor's office. It is not the same as zoned property. Zoned land includes a cross -
section of different uses.
Whatcom County is about 70% publicly owned. This includes the forestland property in the
eastern 2/3 of the county plus areas of state and locally owned lands in the balance of the
county and public water bodies. Forested land use exceeds 83 %, factoring in privately owned
timber stands.
Privately owned property is 29% of all land, primarily the western 1/3 of the county. Excluding
one million acres of forestry use, the largest single shares are agriculture (54 %), residential
(22%), vacant (15 %) and public (4%). The balance of land used for economic development
purposes, including services, utilities, industrial and commercial, total 5.5% of non - forested land
(about 12,000 acres)
Charts 1 and 2 are summarized shares of ownership and land use in the county.
Chart 1
Land Ownership In Whatcom County
Local
State 0.4% Tribal
7.5% 0.2%
Private
28.3%
Fetlere
63.6%
includes public water bodies
Chart 2
Land Uses in Whatcom County
(excluding forest lands)
Public Economic
4.3% Developed
5.5%
Vacant
14.7%
Residential
22.2% Agriculture
53.4%
Source: Whatcom County Planning and Development and County Assessor database.
Section I
Page 1.11
Commercial and Industrial Land Availability
While efforts have been made in the past, better assessment in needed on how much industrial
and commercial lands exist in the county, especially regarding the conditions and suitability for
current and future development.
Based on the most strict land use designation, industrial land is 3,202 acres and commercial
totals 1,119 acres. Additional services and utility uses total 8,000 acres. The County Assessor,
based on re- appraisals of Y4 of county properties each year, determines land use. However,
industrially zoned property, which consists of classifications such as light impact industrial,
general manufacturing and heavy impact industry, is almost 14,400 acres, while commercially
zoned property is about 5,500 acres. Simply, land use and zoning do not correspond. Land
can be zoned industrial, but may be used for agriculture open space — which accounts for
discrepancies in areas like Cherry Point. In addition, the large discrepancy between industrial
zone and use may be attributable to land use restrictions, such as wetland designations that
restrict development of the property.
Points about zoned property:
• About 2/3 of the county's industrial zoned property is in the Cherry Point Heavy Industrial
area
• Only 4% of zoned land within Whatcom jurisdictions, 503,000 acres, is
Industrial /Commercial
within Whatcom County Jurisdictions
-- - -- - - -- -Share of Zoned Land ------ ---
- -- -Acres Zoned As...
%Industrial
Industrial
Commercial
Bellingham'
2,438
1,417
Blaine
419
250
Everson
111
50
Ferndale
685
1,082
_ynden
201
403
VOOksack
10
81
iumas
395
52
Jnincorp County"
10,127
2,125
Total
14,386
5,460
-- - -- - - -- -Share of Zoned Land ------ ---
Total
%Industrial
%Commercial
%Other "'
Zoned Acres
14%
8%
77%
16,85,
11%
8%
80%
3,661
14%
6%
79%
7T
14%
30%
56%
3,63
8%
15%
77%
2,23:
2%
18%
80%
44;
45%
9%
47%
87:
2%
0.4%
97%
474 494
les allocations of mixed zone property per City of Bellingham planning dept
20 Zoning
ar = residential, agriculture, institutional, public, open space, etc
More research is needed and is being pursued to critically determine industrial and commercial
land availability and development potential. The Partnership for a Sustainable Economy is
sponsoring a project to better account for supply and availability of industrial and commercial
properties.
Section I
Page I -12
Brownfields
According to the U.S. Environmental Protection Agency, brownfields are abandoned, idled, or
underused industrial and commercial facilities where expansion or redevelopment is
complicated by real or perceived environmental contamination. EPA's Brownfields Initiative, in
partnership with other state and federal agencies, empowers states, communities, and other
stakeholders in economic development to work together to prevent, assess, safely clean up,
and sustainably reuse these properties.
When land available for new development is expensive and scarce, brownfield properties can
offer benefits, one of which is that federal and state agencies provide financial and technical
assistance to re- develop these properties. U.S. EPA, EDA, HUD and the Washington State
Department of Ecology are some of the key agencies.
Whatcom County contains many sites that are eligible for brownfield redevelopment. For
example, the City of Bellingham manages a Brownfield Program that is working to acquire,
remediate and redevelop the Sash and Door site as identified in the Whatcom Creek Waterfront
Action Program (1996). In addition, portions of the GP mill site on the Bellingham waterfront
pose long -term opportunity as part of an overall vision to redevelop the waterfront area that will
involve the private and public sectors.
section I
Pagel -13
F. Whatcom County and Canada
For the purposes of this blueprint, Whatcom County is considered an economic unit based on
the political jurisdiction and the situation of Bellingham as the trade center for the county. In
reality, Whatcom is the center of a larger economic region with a population of 5.6 million,
stretching from Seattle to Vancouver B.C.
In particular, Whatcom County's location and relationship with Canada is important to the
county's community and economic development.
The Cascade Gateway
The Cascade Gateway is comprised of four land ports -of -entry between Whatcom County,
Washington and British Columbia: Peace Arch and Pacific Highway (Blaine, WA/Douglas BC);
Lynden, WA/Aldergrove, BC; and Sumas, WA/Huntingdon, BC.
Blaine is the third busiest passenger vehicle crossing, and the fourth busiest commercial truck
crossing along the U.S. — Canadian border. Over $30 million crosses the Cascade Gateway in
trade each day; in 2000, over $10 billion in commodities crossed the border at the Pacific
Highway crossing alone.
The Challenge of Securing Mobility
Cross - border commercial truck traffic has increased over 80% through the Cascade Gateway
since the North American Free Trade Agreement began in 1993. This increase in commercial
traffic, coupled with population increases that are disproportionately high in the Cascade
Gateway border region, has led to increased congestion at the border. Efficiency and security
can be improved through coordinated planning, infrastructure changes, and the application of
existing technologies to pre -clear people and goods.
Borderlssues
Border crossing is a way of life for Whatcom County residents. There has always been
inconvenience and delays, primarily due to the functions of the agencies that govern the border:
They reside within different federal agencies and have not been well coordinated:
• The Border Patrol, under the Immigration and Naturalization Service, ensures that
people who cross the border are legally admissible. It resides within the Department of
Justice.
• The Customs Service, under the U.S. Department of Treasury, enforces laws pertaining
to import and export of goods across the border
• The Coast Guard, within the U.S Department of Transportation (and Department of
Defense in times of war), patrols the waters for illegal water trafficking.
• The Agriculture Quarantine Inspection under the USDA, controls agricultural products
Section I
Page I -16
The September 11, 2001 terrorist events permanently reshaped transportation across the
border. Now, proposals exist at the federal level to create a National Homeland Security
Agency and co- locate many of these agencies for better coordination. As of this writing
Congress is moving to reinvent the INS into a more effective agency.
In light of September 11, the challenge is increasing safety while not impeding trade and
commerce. Canada is the most important trading partner with the U.S., accounting for 25% of
U.S. exports. The state of Washington alone exports $3 billion each year to Canada. 1 -5 is the
third busiest border crossing, as the corridor for commerce stretches to San Diego, California
and the Mexican border.
The national governments of Canada and the U.S. are working towards a coordinated approach
to provide public safety and protect jobs. One step recently completed is the U.S.-Canadian
Accord, which tightens asylum Procedures in both counties while advancing information sharing
and expanding special border - enforcement teams. Other measures moving forward include:
• Offshore interception.
• The NEXUS program, which uses technology to evaluate pre - screened commuters as
they pass through the border (replacing the PACE lane).
• Upgrading and harmonizing technology used for commercial traffic management.
• Increasing staffing on both sides of the border where significant delays occur.
Local efforts by groups such as the Bellingham - Whatcom Chamber of Commerce, Whatcom
Council of Governments, the Cascadia Discovery Institute, and the Canadian /U.S. Partnership
have advanced border security improvements while preserving and enhancing international
commerce.
The locally coordinated efforts have paid -off with the federal announcement that NEXUS will be
introduced at the Peace Arch Crossing, reviving mobility and relieving many commuters in
W hatcom County and B.C.
The International Mobility and Trade Corridor Proiect (IMTC)
IMTC is a U.S. - Canadian coalition of business and government entities formed to jointly
identify and pursue improvements to cross - border mobility in the Cascade Gateway. The shared
goal is to better facilitate trade, transportation, and tourism with innovative improvements to
infrastructure, operations, and technology. Over 50 organizations participate in IMTC, which is
led by the Whatcom Council of Governments.
IMTC participants meet regularly to discuss projects and regional planning issues related to
cross - border transportation and inspection systems. Participants voluntarily come from
transportation agencies, inspection agencies, local jurisdictions, regional government, industry
associations, and non - governmental organizations from both sides of the border. Since IMTC's
beginning in 1997, several projects have been cooperatively identified and funded by federal,
state, and provincial sources.
IMTC's goal is to improve mobility and safety in the Cascade Gateway. To this end, the
following objectives have been identified:
• Facilitate cross - border coordination
section I
Page 1 -15
• Integrate Intelligent Transportation Systems (ITS)
• Promote improvements to operations, policy and staffing
• Improve border data and planning
• Promote infrastructure improvements
I MTC Projects
Funding through the U.S. Federal Highways Administration's Corridors and Borders Program,
matched by local, regional, and national IMTC partners, has provided the resources needed to
improve both the infrastructure and understanding of the Cascade Gateway system. Projects
overseen by the IMTC coalition include the Cross - Border Trade & Travel Study; Pre - Approved
Travel Program Marketing and Improvements; ITS for Commercial Vehicle Operations; a
Cascade Gateway Rail Study; a Cross - Border Transit Framework; an Abbotsford -Sumas Border
Improvement Project; a Binational Transportation Demand Model; and an Advanced Traveler
Information System. For FY 2002, thirteen new projects (including construction, design work,
and studies) will be funded to improve and secure the movement of goods and people across
the Cascade Gateway.
Border Crossings and Exchange Rates
According to the Whatcom Transportation Plan, 'The US- Canadian bordercrossings in Whatcom
County embody the potential for the most profound transportation impacts in the county over
time."
The following chart breaks out ten years of traffic movement by U.S. and Canadian residents. It
details the magnitude of Canadian traffic. Canadian - licensed car crossings declined 61 %, while
U.S. - licensed auto crossings rose 59% traveling north. This traffic movement suggests an
influence from the lower Canadian dollar,
Northbound Peace Arch Vehicles, 1991 -2000
1,900,000
1,700,000 Canadian Vehicles
1,500,000
1,300,000
1110D,000
U.S. Vehicles
900,000
Data source:
stamac. Camara
700,000 Data corralled t o
m
WhatCom cor coed b
Governments
500,000
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
section I
Pagel -16
The next chart shows the effect of the declining Canadian dollar on southbound traffic, as well
as the impact of September 11. The Southbound auto data includes the total of the four points
of entry into W hatcom County and is adjusted for variations due to seasons of the year.
It is clear that the exchange rate and traffic volume are highly correlated: When the Canadian
dollar was at its highest in late 1991, more Canadian autos visited or passed through Whatcom
County. As the Canadian dollar declined, so has traffic.
Seasonally
Adjusted Cascade Gateway Southbound
Autos
and Exchange Rate
(Jan 1987 - October 2001)
1,000,000 -
- -- -- -_ - -
$0.90
900,000
- -- _
$0.85
800,000 + - --
Exchange Rate
$0.80
700,000
- �-
$0.75
t $0.70
a
600,000
- _
$0.65
c
X
500,D00 - -
$0.60
Southbound Autos
4001,000 - —
--
50.55
d
}$oso
$00,000 r
_. — — -__ _ -.. — —
$0.45
200,000 ti—
T
00 (P OP ON
$0.40
�qC )qq �qC
)qc �qC �qC qtr �,eC �qC �qq �,aC loo �Po )qo loft ',s
In addition, the September 11 effect is apparent. Between August and October 2001, auto
volume dropped by 115,000 vehicles, the largest percentage decline in southbound autos since
the Canadian dollar peaked at US $0.89 in October 1991.
However, truck transportation has not declined. Cross - border commercial vehicle traffic
increased 100% between 1991 and 2000. Since September 11, long border waits have
delayed, but not significantly reduced, truck traffic. Over the same period, aggregating all border
traffic, two -way auto traffic has fallen. The majority of cross - border auto travelers are Canadian
given a much larger population distribution north of the border. This is further evidence that
exchange rate differentials have a greater effect on regional cross - border residential travel
demand.
section I
Page 1 -17
O
U
0
U
tB
L
.�
a
Section I
Page 1 -19
SECTION II: POPULATION AND LABOR FORCE
Washington State
Percent Population Change: 1990 to 2000
aource: u.5. census Bureau
A. Population Trends
Whatcom County is the ninth largest county in the state with a population of 166,814 people
(2000 Census). Over the last ten years, the county grew 30 %, ranking sixth in growth among
the 39 counties in the state. Growth in neighboring Skagit and Snohomish counties was
comparable to Whatcom.
Despite the rapid growth, with two - thirds of the county in national forest, Whatcom is a rural
county based on density. The population density of the county is 78.7 persons per square mile,
and the state defines a rural county as having a density less than 100. Formally, Whatcom
County is included in the Bellingham Metropolitan Statistical Area, because the central city,
Bellingham, exceeds 50,000 people.
The county has experienced 30 years of uninterrupted growth, pausing only during economic
recessions in 1973 and in the early 1980s. The 1970 and 1990 decades grew at identical rates
of 2.7% average annual growth, slowing in the 1980s to 1.8% annually. Except for much of the
1980s, the county's growth rate has exceeded statewide growth. From 1988 to 1991 Whatcom
County's growth rated peaked during a real estate construction and retail trade boom
associated with the high Canadian dollar, sparking Canadian development in the county and an
influx of new residents.
Chart 3 shows the long -term growth trend of the county compared to the state, including trough
and peak growth rates in the county.
Section it
Page II -1
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Population Growth
1970s Equals the 1990s
P( \ �\ Whatcom County
Washington State
-1.0% -I 1
1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
Table 1 shows the population comparison of communities in Whatcom County. Over the last
ten years, the Birch Bay area, Blaine, Ferndale, and Lynden have grown rapidly, exceeding the
countywide increase.
and
Avg. annual growth rates
Pop Share
of Countv
40.3%
5.4%
5.3%
1.2%
2.3%
0.6%
0.5%
44.5%
100%
Section II
Page II -2
1980
1990
2000
1980 -90
1990 -00
Vhatcom County
106,701
127,780
166,814
1.8%
2.7%
allingham
45,794
52,179
67,171
1.3%
2.6%
ynden
4,028
5,709
9,020
3.5%
4.7%
erndale
3,855
5,398
8,758
3.4%
5.0%
Iverson
898
1,490
2,035
5.2%
3.2%
Maine
2,363
2,489
3,770
0.5%
4.2%
umas
712
744
978
0.4%
2.8%
looksack
429
584
851
3.1%
3.8%
inincorporated
48,622
59,187
74,231
2.0%
2.3%
irch Bay"
2,165
2,656
4,961
2.1%
6.4%
I. Roberts"
461
916
1,308
7.1%
3.6%
ast County "'
3,589
4,241
6,014
1.7%
3.6%
lirch Bay's figures are
from Census. The community also has a substantial
seasonal population
increase
Permanent resitlents.
Seasonal population brings the
Point's total to 4,308 in 2000.
'Census Bureau Census tract 101, approx Mt Baker School District
Pop Share
of Countv
40.3%
5.4%
5.3%
1.2%
2.3%
0.6%
0.5%
44.5%
100%
Section II
Page II -2
Birch Bay is unincorporated, but is a designated Urban Growth Area as well as a Census Data
Place. The community has become a popular residential and seasonal recreation location,
increasing 87% since 1990.
The city of Blaine, contiguous to Birch Bay on the Canadian border, reversed its growth from
about zero in the 1980s to expand by 50% over the past decade, with development of the
Semiahmoo Resort and adjacent housing.
The cities of Ferndale and Lynden have grown at comparable rates. Ferndale, the third largest
city in the county, is influenced by its close proximity to Bellingham and major industrial
employers at Cherry Point (aluminum smelting and refineries). Lynden, the second largest city,
has grown in part due to its rural community appeal.
Bellingham, the largest city and economic center of the region, exceeds 70,000 including its
urban growth area. Bellingham has grown the most in net addition of people. However, from
1970 to the early 1990s the unincorporated areas of the county grew almost 1.5 times the rate
of Bellingham. The smaller cities fluctuated over the same period, with Lynden and Ferndale
expanding strongly in the early 1980s.
This small city and rural expansion has ultimately decreased Bellingham's share of the county
total as shown in chart 4. Of note, some of the growth shown in the unincorporated share
includes the urban fringes of cities, in particular Bellingham. In fact, since 1995, Bellingham has
acquired most of the population gains within the county. Overtime, the Bellingham urban area
will increase as a share of county population, while the rural areas not associated with urban
growth boundaries, will decrease. In landmass, Bellingham has grown from 20.2 square miles
in 1970 to 25.3 in 2000 through annexation. However, population density has increased
primarily through in- filling within the city limits causing Bellingham's' density to grow from 1,952
persons per square mile to 2,656 over the same period.
Chart 4
Urban to Rural /Suburban Population Shift
Share of County Population Whatcom County
60% 1 _...___
50%
40%
30%
20%
10%
0%
01970
1 ■ 2000
Bellingham Six Smaller Cities* Unincorporated
*Lynden, Ferndale, Blaine, Everson, Sumas, Nooksack
Areas **
" Includes Urban Growth Areas surrounding city limits
Section II
Page 113
a
a
a
1. New Residents: the Driver of Growth
Over 75% of the county's growth is due to in- migration. The balance of rowth is from natural
increases. Compared to other Washington counties, Whatcom ranks 16 in population growth
share due to in- migration; slightly above the median of 73%. Chart 5 compares net migration
over the last three decades.
In the 1970s growth into the county was driven by the construction of the ARCO (now owned by
BP) refinery at Cherry Point and generally good health in manufacturing sectors. New
employment opportunities lead the growth in population, which attracted people to the county.
New migrants added 19,007 to the population.
During the 1980s and the national recession, many areas of the western U.S. with natural
resource -based economies lost population as young people moved away. Whatcom did not
follow that trend, although in- migration slowed considerably over the period to 13,164 persons.
At the same time the local labor market slackened as the unemployment rate spiked to 12.9% in
1982.
With the 1990's economic boom and "livability appeal" of the Puget Sound region, 30,670 new
residents settled in Whatcom County by 2000.
Chart 5
Components of Population Change
W hatcom County
9,034
1990 -00 30,6 0
8,364
21,079
1980 -90 1 ,164
7,915
❑ Total
pg718 ■ Net Migration
1970 -80 9,007 ■ Natural Growth
5,711
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 05,000
2. Age and Race of the Population
Chart 6 shows the population of Whatcom County by age group share size over time.
Whatcom County follows national trends with an aging population. The primary factor behind
this overall trend is the aging of the Baby Boomers born between 1946 and 1964, and slowdown
in birthrates. The chart shows that since 1980, the share of population under 25 has decreased
and the 45 -64 age grouping has increased.
With only 10% of the county population, the under 25 age group in Whatcom County is a slightly
higher share compared to the state. This difference is due to the presence of Western
Washington University, Whatcom Community College and Bellingham Technical College.
Section II
Page II -5
Migration patterns may also explain the change in age composition. The large jump in the 45-
64 bracket could also be explained by in- migration of early retirees during the 1990s.
35%
30%
25%
20%
15%
10%
5%
0%
Chart 6
Population by Age Groups
Whatcom County
0 -14 15 -19 20 -24 25 -44 45 -64 65+
■ 1980
■ 1990
e Grou s
1980
1990
2000
14
21.8%
21.3%
19.9%
5 -19
[25-44
9.4
7.3
8.4
0 -24
11.8
9.5
10.1
29.1
32.1
27.5
45 -64
16.7
17.3
22.5
65+
11.2
12.6
11.6
Category descriptions by the state Employment Security Department:
• 0 -14 = Infants and adolescents a decade or two removed from the labor force
15 -19 = Prospective new entrants into the labor force, except college students
• 20 -24 = New entrants into the labor force
• 25 -44 = Young workers in their prime years of productivity
• 45 -64 = Mature workers with years of accumulated skills and experience
• 65 += Semors/Retirees
Racial characteristics have shifted slightly over the years (see Table 2). In both Whatcom
County and Washington, the Caucasian population has decreased from 93 to 88 percent of the
total population from 1990 to 2000. The greatest growth in minority groups has been in
Asian /Pacific Islander and Hispanic groups. However, the faster growing category is
'other /multi - racial,' which is evidence of the increasing racial integration of the population.
Whatcom County has a higher percentage of Native Americans than the state due to the Lummi
and Nooksack Tribes.
The ethnic composition of Whatcom is changing dramatically. Since the late 1980s there has
been a steady immigration of Russian and Ukrainian people to the county, primarily seeking
religious freedom. Whatcom County has the highest per capita Russian population of all
counties in the U.S. Almost one -fourth of the residents in the Peaceful Valley area of eastern
Whatcom County are Russian (2000 Census)
Section II
Page II -6
Table 2 - Racial Composition in Whatcom County
3. Population Forecast
The base forecast for population growth in the county shows that rapid population growth will
moderate over the next twenty years according to the private forecasting firm ECONorthwest.
From 2000 -2010, annual average growth is projected to be 1.7 %, and from 2010 -2020 leveling
to 1.4 %. Those rates are similar to growth in the 1980s.
Even at a moderate rate, this growth will produce a 35% increase in population. The 2020
population is estimated to be 226,220, an addition of 3,000 persons per year. Based on
historical net - migration shares that means about 2,250 new residents would move to the county
each year.
Whatcom County Population Forecast
Year
- - - -- 2000
- - --
------ 1990
-----
White
147,485
88.4%
119,229
93.30
Other/multi-racial
8,598
5.2%
1,524
1.2%
Sian /Pacific Islander
4,872
2.9%
2,363
1.80
Indian /Aleutian
4,709
2.8%
4,014
3.1
Black
1,150
0.7%
650
0.5%
Total
166,814
100%
127,780
100%
Hispanic*
8,687
5.2%
3,718
2.90
Hispanics maybe of any race accoming to Census definition
ource: Census Bureau
3. Population Forecast
The base forecast for population growth in the county shows that rapid population growth will
moderate over the next twenty years according to the private forecasting firm ECONorthwest.
From 2000 -2010, annual average growth is projected to be 1.7 %, and from 2010 -2020 leveling
to 1.4 %. Those rates are similar to growth in the 1980s.
Even at a moderate rate, this growth will produce a 35% increase in population. The 2020
population is estimated to be 226,220, an addition of 3,000 persons per year. Based on
historical net - migration shares that means about 2,250 new residents would move to the county
each year.
Whatcom County Population Forecast
Year
Population
2000 -2020
Change
2000 actual
166,814
2005
181,996
2010
196,894
2015
211,753
2020
226,220
35.6%
Source: ECONorthwest, Whatcom County Population and Economic Forecasts, May 2002.
4. Housing
Residential housing growth has kept pace with population shifts according to the Whatcom
County Real Estate Research Report (2001). Since 1990, Bellingham's total housing stock and
the city's population have increased 29 %. The market has also adjusted to accommodate
more renters. Over the decade 2,231 single - family units were added to the housing stock.
During the same period the net addition to the multi - family stock was 4,249 units. As a result,
the supply of single - family units in Bellingham declined to 55% of the housing market by 2000
compared to 60% in 1990.
section II
Page II -]
Like the Puget Sound area, housing prices have increased sharply in the county over the last 10
years. Since 1990, median home prices in Whatcom County have grown at a 5.3% average
annual rate, comparable to annual growth in the 1980s. The median price for a single - family
home is $155,700 (2000 Census) and Whatcom County ranks seventh out of the ten mainland
counties on Puget Sound in median home prices, according to the Washington State Center for
Real Estate Research. That is a competitiveness factor that could attract new industry to
Whatcom County compared to other Puget Sound locations, and it has meant a secure
investment for homeowners in the county.
However, home ownership affordability is still a challenge for many county residents: 28
counties in Washington have lower priced housing according the Washington State Center for
Real Estate Research. The home ownership rate in Whatcom County declined one percentage
point over the last decade. According to the 2000 Census, 63% of county residents own a
primary residence in the county. The rate in 1990 was 64 %. The national rate for
homeownership is 66 %. The home ownership rate in the city of Bellingham is much lower.
The 2000 Census shows 48% own homes. The large university and college student population
contributes to the high rental rates, but affordability is an increasing barrier to home ownership.
As evidence, growth in income has not kept pace with housing prices. Between 1990 and 2000,
the median home price increased 67 %, while per capita personal income and annual average
wages each increased about 40 %.
B. Labor Force
1. Overview
The civilian labor force includes all people over 16 who are working or actively seeking work. An
expanding labor force is necessary to supply business with a pool of workers. The composition
of labor force in Whatcom County has changed over time. Prior to the 1960s, it was based on
traditional, primary employers in agriculture, fishing, timber and mining sectors. With the
completion of the Intalco aluminum plant in 1966, the completion of the 1 -5 freeway linking the
county with Canada and Seattle, and construction of the ARCO refinery in the mid- 1970s, the
employment base expanded into the manufacturing and service economy. This coincided with
development and expansion of the county's higher education institutions and need for a better
trained and educated work force.
Whatcom County aspires to provide a high quality labor force. The advantage in labor quality is
due to a highly educated workforce, high rankings by the state in education quality, and a strong
work ethic and productivity. In a recent benchmarking study rating Bellingham among
comparable /competitive cities, the main positive differentiating factor for the city was above
average labor quality (Evaluation for Industry Recruitment in Whatcom County and Cherry Point."
Conducted for the Port and PUD # 1, November 14, 2000)
2. Labor Force Growth
Since 1970, Whatcom County's civilian labor force has grown at an average annual growth rate
of 2.9%, from 33,810 to 80,300 in 2001. By comparison, the state's labor force grew 2.6
annually. In Whatcom County, extraordinary gains were posted in 1971 with the construction of
the ARCO refinery; and in 1989 due to Canadian investments in manufacturing ventures, and
growth in retail, construction and service employment. Between the late 1980s and the early
Se ion II
Page II -8
1990s Whatcom County experienced its strongest economic expansion, boosting labor force
growth between 3-7% annually. Since 1995, county labor force growth has been sluggish,
growing less than the statewide average. In fact, from 1999 to 2001 it dropped 2.4 %.
The slowdown of the labor force growth and fast paced growth of the population has created a
unique combination. In the 1970s and 1980s the labor force grew faster than the population.
During those decades jobs were expanding at an even greater rate and could absorb the growth
in people. However, since 1990 more people moved into the county for reasons besides works,
primarily for retirement.
3. Unemployment
Whatcom County has experienced a relatively high unemployment rate over the last few
decades, compared to state and national averages. This is the legacy of a natural resource -
based economy subject to seasonal swings in job availability. Except for a few points in time
the county unemployment rate has exceeded the statewide rate. Chart 7 shows unemployment
reached nearly 13% in 1982 at the height of the national recession and bottomed at 5% in 1990.
Over the last few years of the decade -long economic expansion, unemployment has held
slightly above 5 %.
However, with a national recession starting in March 2001, the terrorist events of September 11,
and massive layoffs in Washington State, unemployment in the county has been increasing. In
the county, manufacturing job cuts at major employers such as Georgia- Pacific and Intalco, in
excess of 750 jobs, contributed to county unemployment. County unemployment rose to 6.8%
in 2001. Statewide, huge job cuts at Boeing and the technology sector contraction has pushed
the state unemployment rate to the second highest in the nation (8.2% in January 2002).
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
Unemployment Rates
Tracking state and national, but almost always higher
12.9%
Whatcom County
5.0%
1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
section II
Page II -9
Labor Force Statistics
Another way to evaluate labor force conditions is the county unemployment rate divided by the
national unemployment rate. If the county share is less than 100 %, the local labor market
conditions are better than the U.S. average. Since 1980 the Whatcom County share was high
but declining, trending downward from 156% in 1983 to a low of 90% in 1990. As Chart 8
depicts, since 1990 the county share has risen to 142 %, indicating worsening employment
trends.
180%
160%
140%
120%
100%
80%
Chart 8
Whatcom County Percent of U.S. Unemployment Rate
60
---------- - - - - -- Whatcom County------- - - ----
Unemployment Rates
Labor Force Employed
Unemployed
Whatcom
State
National
970
33,810
30,920
2,890
8.5%
9.2%
5.0%
980
49,000
44,000
5,000
10.2%
7.9%
7.2%
990
67,500
64,100
3,400
5.0%
4.9%
5.6%
000
81,600
76,900
4,700
5.7%
5.2%
4,0%
001
80,300
74,800
5,500
6.8%
6.4%
4.8%
Another way to evaluate labor force conditions is the county unemployment rate divided by the
national unemployment rate. If the county share is less than 100 %, the local labor market
conditions are better than the U.S. average. Since 1980 the Whatcom County share was high
but declining, trending downward from 156% in 1983 to a low of 90% in 1990. As Chart 8
depicts, since 1990 the county share has risen to 142 %, indicating worsening employment
trends.
180%
160%
140%
120%
100%
80%
Chart 8
Whatcom County Percent of U.S. Unemployment Rate
60
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
4. Labor Force and Unemployment Projections
ECONorthwest also estimated long -term projections of labor force and unemployment for
Whatcom County. The labor force is expected to grow at a rate similar to the 1990s, near 2%
per year, which is a sustainable expansion of the workforce.
Section u
Page II -10
However, in the near -term, unemployment is expected to rise. ECO estimates that the
unemployment rate in the county will rise to 7.9% over 2002, and then decline to 6.8% by 2005.
It is projected to average 6% from 2010 through 2020. How quickly unemployment rises and
falls over the next few years will depend on how the region and nation navigates through the
current recession. On the upside, the long -term unemployment rate outlook shows lower rates
than the 1990s average of 6.5%.
Whatcom County Labor Force Projections
Source: ECONorthwest, Whatcom County Population and Economic Forecasts, May 2002.
section II
Page II -11
Labor Force
Unemployment Rate
2000 actual
81,600
5,7/
2005
89,715
2010
99,187
6.2
2015
109,221
2020
119,308
Source: ECONorthwest, Whatcom County Population and Economic Forecasts, May 2002.
section II
Page II -11
SECTION III: THE WHATCOM ECONOMY
Where the jobs are in What0er71 County
- ervlces
16,822
Jobs by Economic Sector in 2000
Retail Trade
13,997
0SaMCe$
overnment
10,641
Manufacturing
9,41
onstruction
5,376
5.9%
holesale Trade
3,485
1p1Meak 7 s
an Wrm d
ransportation
3,42
Finance
2 539
OTAL
65,701
14.5%
Whatcom County
14.0%
12.0
10.0%
8.0%
6.0
4.0
Jobs by Economic Sector in 2000
25.6%
0SaMCe$
2.9%
6111 Trade
oarnemrgrA
5.2% 212%
-2.0 %
D mandatunrq
5.9%
-4.0%
1p1Meak 7 s
an Wrm d
Tiar9podaeo
am
Lie,
14.5%
Sour WasNrgrcn Dept W Empb}mml Sewny, CO rdEmpbNrera
A. Overall Trends in Employment
In Whatcom County, the number of non - agricultural jobs has consistently grown since 1982,
after economic recessions halted growth in most areas of Washington State and much of the
nation. Overall, for the past 30 years the number of jobs grew 3.4% annually from 24,130 to
66,100. This is comparable to Washington as a whole, which grew at a 3.1 % annual job growth
rate during the same period. After the mild recession of 1990 -91 growth has not been as strong
as in prior years.
Job growth has slowed considerably over the last ten years. The average annual rate of
growth for total non - agricultural employment in Whatcom County from 1970 to 2000 is shown on
Chart 9. The average annual rate of growth from 1990 to 2000 was 2.4 %, compared to a 4.2%
average the previous decade. Over the 1990s, a total of 14,100 jobs were created. As the
economy entered a new recession in March 2001 job growth in Whatcom County has slowed.
Chart 9
Nonfarm Job Growth
Whatcom County
16.0%
14.0%
12.0
10.0%
8.0%
6.0
4.0
- - - -.
2.0%
0.0%
-2.0 %
-4.0%
-6.0%
19M 1972 1974 1976 1978 1980 1962 1984 1986 1908 t990 1992 19M 1996 1990 2000
Whathappenedin
19719
The huge growth
spike in 1971 is the
peak construction
year of the ARCO
refinery at Cherry
Point. Thatproject
added3,350jobs
from 197071. The
drop in 1972 is the
completion of the
Project and onset of
a national recession,
with a net foss of
1,100jobs.
Section III
Page 1111
1. Washington State and Whatcom County Job Comparison
Excluding agriculture, Whatcom County is 2.5% of the state economy in terms of employment.
Table 3 shows the county has a significantly higher share of retail and construction, and a lower
share of service employment compared the state in 2000.
Table 3
Employment Shares in 2000
Washington
Whatcom
State
County
SERVICES
28.6%
25.6%
RETAIL TRADE
18.5%
21.3%
GOVERNMENT
17.6%
16.2%
MANUFACTURING
13.2%
14.3%
CONSTRUCTION
5.7%
8.0%
WHOLESALE TRADE
5.8%
5.3
TRANSPORTATION AND PUBLIC UTILITIES
5.3%
5.2
FINANCE, INSURANCE AND REAL ESTATE
5.1%
3.9
MINING
0.1%
0.2%
Job Total
2,611,707
65,701
Washington State Employment security Department, Covered Employment
Excludes A riculture, Forestnt and Fishing sector
2. Highlights of Employment Sectors
In general, the long -term trend in the county's economic development is similar to state and
national trends. The service- producing employment sectors (trade, services, government,
financial, transportation/utilities) have grown over time, while goods production (mining,
construction and manufacturing) has decreased as a share of total employment. The goods
share of the Whatcom economy declined from 33% in 1970 to 23% in 2000, while services rose
from 67% to 77 %, based on nonagricultural payroll employment data.
The challenge to local economic development is that production - related jobs have historically
paid higher wages and created additional jobs and income in the area economy. Service and
retail employment has traditionally developed from the effects of manufacturing. However, due
to the emergence of the technology -based economy in the 1990s, an increasing variety of
service jobs have added a dimension of diversity to the local economy, making it more
resilient during economic downturns. Service jobs related to health rare and high
technology, for example, are paying increasingly higher wages.
Table 4 and Charts 10 and 11 depict the job and wage distribution for eight major categories of
employment in the county (construction and mining is combined). Each sector is composed of
industries, which are in turn a collection of business firms.
section III
Page III -2
The changes in shares show the Whatcom economic base in transition:
• While some sectors have contracted in particular years, over the last two decades all
sectors have expanded. However, varying rates of growth has shifted economic sectors.
• Services comprise almost 26% of all jobs -- the largest share of the economy --
surpassing both retail trade and manufacturing, which dominated employment in 1981.
This sector is the major contributor to job growth.
• Construction and wholesale trade have increased their shares slightly, now comprising
13% of all jobs.
• Sectors declining in their share of total employment include manufacturing, retail trade,
government, transportation, finance /insurance /real estate and mining, totaling 61% of all
jobs.
• Of these sectors, a slowdown in retail trade and manufacturing growth since 1990
accounts for most of the decline.
• Industries in the manufacturing, government, construction, wholesale trade,
transportation and finance sectors add value to the economy by paying comparably
higher wages per job.
• The service and retail sectors comprise most of the jobs in the local economy and pay
relatively lower wages per job, although wages in services are increasing at the fastest
rate among all sectors since 1990.
Employment and Wage Distribution between 1981 and 2000:
Whatcom County Moving Towards Diversification
able 4
Share of Total Jobs and Wages
hatcom Count
1981
Employment
Wages
2000
Employment
Waces
Services
18.9%
13.6%
25.6%
21.3%
Manufacturing
20.8%
30.7%
14.3%
20.0%
Government
17.1%
18.9%
16.2%
17.4%
Retail Trade
23.5%
13.6%
21.3%
12.9%
Construction +Mining
5.8%
7.7%
8.2%
11.0%
holesale Trade
3.9%
4.2%
5.3%
6.6%
Transportation
5.4%
7.3%
5.2%
6.3%
Finance
4.6%
3.8%
3.9%
4.4%
100%
100%
100%
100%
Source: Washington State Employment Security
Department, jobs covered
by state unemployment insurance. Agriculture
forestry and fishing excluded from total.
Section IN Page III -3
Table 4 on the charts:
Chart 10
Job and Wage Shares in 1981
S0',t ao" at°°a \ \SO' o& tad° ova, P°o°
°
�a °u \a Poa P8\° CA °a \c�`aS t
yp.° t
B. The Natural Resource Economy
1. Agriculture
Job and Wage Shares in 2000
Agriculture is an important economic base in the county. Farming is prevalent in the
northwestern lowlands of the county, around the communities of Lynden, Ferndale, Everson,
Nooksack and Sumas. In 1997, the total value of farm products produced and sold in the
county was $241.6 million, ranking 51" among counties in the state. Livestock sales, including
dairy, account for 83% of the county's total market value and crop sales represent 17 %. The
Washington Agricultural Statistics Service estimates the overall economic impact of agriculture
sales multiplies three to seven times in the local economy. More direct research and education
about the economic value of agriculture is being prepared by Western Washington University.
The Washington Employment Security Department reports the share of full -time agricultural
(crops, livestock and agricultural services) employment in W hatcom County is 4.2% or 2,912
jobs, compared to 3.2% for the state in 2000. However, on its own, these jobs data are not a
sufficient measure of the importance of the farm economy, as it significantly undercounts the
number of jobs performed on a farm by excluding seasonal and part-time workers, as well as
owner - farmers. Based on information for the USDA, another 4,200 workers are seasonal or
part-time. Therefore, the job and wage numbers in the CEDS do not include the "agriculture,
fishing and forestry" sector.
Dairy and berry farms are the largest component of agriculture. The county is in the top 12
counties nationwide in milk production. While the number of dairy farms declined from 480 in
1985 to 201 in 2001, the value of milk production at dairies improved from $130 million to $185
million over the same period. In addition, W hatcom County produces more blueberries and
raspberries than any other county in the state and ranks 2otl in strawberries. The berry industry
produced 59.6 million pounds in 2000.
section III
Page III -4
In other areas, Whatcom County is the leading seed potato - growing region in the state.
Emerging agriculture production includes nursery/greenhouse and apples. Finally, significant
livestock raised and sold includes cattle and poultry. Local ranchers sold over 3 million
chickens and 66,771 cattle and calves in 1997.
Agriculture production is primarily geared to the processed market with most processing
facilities located outside the county. Local processing of agriculture into value -added products
using milk, berries, herbs and other local produce within the rural farming communities has the
potential to increase incomes and boost manufacturing opportunities.
The farming economy in Whatcom County is consolidating in farmsteads and land use more
rapidly than the statewide average. In 1997 Whatcom ranked 5th in the total number of farms
(1,228) in the state. However, the number of farms has been steadily declining as shown by
Chart 12. While the county declined 11 % in farm count between 1992 and 1997, the state
declined 6%. In addition, Chart 13 shows the acreage devoted to farming has been steadily
declining. Between 1992 and 1997 county acreage fell 12 %. The state declined only 3% over
the same period.
Chart 12 Chart 13
Land
130
110
q
°0 90
~ 70
50
1982 1987 1992 1997
-�- Wntl In Fame —}— Cop6ntl HOrvaIW
Although the number of farms and the amount of acreage devoted to terming has declined, the
size of farms has remained small in acreage. Forty percent of farms are between 10 -49 acres
and 83% of the farms are legally structured as individual or family- owned.
The farming community is addressing the environmental impacts of agriculture. With the
decrease in farmland and increase in farm productivity, more waste is generated, particularly on
dairy farms. Lead by the Whatcom Agriculture Preservation Committee, Washington State
University Cooperative Extension Services and Whatcom County, efforts to use waste for
biogas (energy production) is under study.
Sources: 1997 Census of Agriculture, USDA and Whatcom County Agriculture Preservation Committee
section III
Page III -5
Census Count of Farms
1800
1600
1400
`m 1200
LL
1000
800
600
1982 1987 1992 1997
f All Fa "S —I— Fuiltna Fenna
Land
130
110
q
°0 90
~ 70
50
1982 1987 1992 1997
-�- Wntl In Fame —}— Cop6ntl HOrvaIW
Although the number of farms and the amount of acreage devoted to terming has declined, the
size of farms has remained small in acreage. Forty percent of farms are between 10 -49 acres
and 83% of the farms are legally structured as individual or family- owned.
The farming community is addressing the environmental impacts of agriculture. With the
decrease in farmland and increase in farm productivity, more waste is generated, particularly on
dairy farms. Lead by the Whatcom Agriculture Preservation Committee, Washington State
University Cooperative Extension Services and Whatcom County, efforts to use waste for
biogas (energy production) is under study.
Sources: 1997 Census of Agriculture, USDA and Whatcom County Agriculture Preservation Committee
section III
Page III -5
2. Commercial Fishing
Fishing is one of the oldest industries in Whatcom County, and was the principal source of
subsistence for Indian tribes in the area long before white settlement. Traditional fisheries were
within Puget Sound, around Lummi Island and along the shoreline.
With pioneer settlement in the region came the development of commercial fishing. In the early
1900's Bellingham had the largest salmon cannery in the world, Pacific American Fisheries. It
closed in 1966. The Magnuson Act of 1976 secured Alaskan and Bering Sea fisheries for U.S.
fishers creating more opportunities for local fishers. By 1980 the commercial fishing fleet based
in Whatcom County was one of the largest in the nation. In 1985 there were 740 commercial
fishing vessels operating out of the county, which fished markets from San Diego to the Bering
Sea in Alaska. The Port of Bellingham reports 177 commercial vessels as of June 2002
The local fishing economy has declined significantly over the last decade. During 1990 -94,
commercial fishing averaged 208 jobs per year. Since 1995 employment has steadily declined
to 71 reported full -time local jobs in 2000 according the Washington Department of Employment
Security. In addition, data from the National Marine Fisheries Service for 1981 to 2000 show
commercial landings at the Port of Bellingham peaked at 50 million pounds (mlbs) in 1990 and
declined to 18 mlbs by 2000. Landings at the Port's facility in Blaine were 6.7 mlbs in 2000.
Historically, problems in the fishing industry were primarily due to overcapitalization and
overcapacity, shortening seasons and falling prices. Overfishing lead to imposed moratoria,
quotas and harvest management. New dimensions were added over the last decade with the
Endangered Species Act (ESA), the U.S. /Canada Salmon Treaty, critically low abundance of
West Coast ground fish and salmon resources, and conservation measures, which can be
expected to further restrict commercial fishing opportunities for at least the next 10 —20 years
even if corrective actions were immediately successful. The ground fish (rockfish, flounders,
cod, whiting, and halibut) fleet is struggling under reduced catch quotas and more restrictive trip
limit restrictions. Low fish returns, low catch and reduced seasons has decreased harvesting of
salmon. In 1999 the Puget Sound Chinook Salmon was listed as threatened under ESA. This
will further curtail local fleets, in particular salmon gill- netters and trollers, which are small
operators.
The Dungeness crab fleet suffered a negative economic impact by a recent federal court ruling
that allocated one -half of the crab catch to treaty fishers. While crab harvests have been good,
increased competition from outside the region and a quota system has shortened the season,
reducing local catch and incomes. Quotas are divided between natives and non - natives, and
affects harvests outside of Puget Sound
The Puget Sound Salmon Economic Assistance Program has recently impacted the local
fishery. The program is in response to a U.S. and Canadian agreement to 1999 Pacific Salmon
Treaty negotiations. The program uses federal funds to buy gill net, purse seine and reef net
licenses from qualifying local commercial salmon fishers. It is being phased in over a three -year
period, implemented by the state Department of Fish and Wildlife.
Finally, due to deteriorating water quality, Whatcom County has prohibited commercial shellfish
growing within Drayton Harbor (Blaine) and Portage Bay (off the Lummi Peninsula). The
county created Shellfish Protection Districts for these water bodies and local advisory
committees are actively working on strategies and actions to reduce pollution sources. The
return of a viable commercial local shellfish industry will enhance local economic development.
section III
Page 111 -8
Sources: National Marine Fisheries websitewww.st.nmfs.gov/Gommercial). Natural Resources
Consultants study of Puget Sound, and Summary Characterization for Water Resource Inventory Area
#1, 10120101 draft
3. Forestry
Timber harvesting was also a mainstay of the local economy historically. Pioneering industries
included lumber, shingles, plywood and furniture. However, while over one million acres of the
county is forest, only a portion has been available and accessible for harvest. Most hawestable
timber has been secured from private lands. Even in the peak harvest years of the late 1980s,
over 50% of the harvest was from private sources. State lands, and federally owned timber
from the Mt. Baker - Snoqualmie National Forest provided the balance. By the early 1990s
private sources grew to 75% as total harvest began to decline.
Historically, rapid development has depleted available private forestlands. Railroad logging
began in the early 1900s in the lower North Fork of the Nooksack River. With railroad access
extended to Glacier in eastern Whatcom County in 1909, nearly all sustainable forest land
outside of the Mt. Baker National Forest was harvested by 1940. From 1930 to 1990, about
80% of the private land in the Nooksack River watershed was harvested. Private harvests
peaked at 134 million board feet (mbf) in 1990, and then declined to 52 mbf in 1997.
State forest harvests have been maintained at a sustainable level. Over 29 mbf was harvested
from state lands in 1997, approximately the same level as the 1980s and 1990s. Unlike other
timber - dependent areas of the West, federally owned timber has not been a significant source in
the county. Since 1995, little to no timber has been secured from the Whatcom County portion
of the Mt. Baker National Forest.
Today, the unincorporated area of east Whatcom County is the most dependent on local
sources of timber. This includes the communities of Deming, Kendall, Maple Falls, Van Zandt,
Acme and Glacier. Small mills and log home manufacturers operate in the area, and people
harvest small scale and value -added timber resources.
Environmental restrictions on riparian areas, federal Endangered Species Act listings of spotted
owl, Chinook salmon and bull trout, and state laws governing endangered species have reduced
access to timber in the county. However, the impact on timber manufacturing in Whatcom
County has not been as significantly affected by environmental restrictions as other areas of the
state due to the lower reliance on publicly owned timber lands.
Sources: Washington State Dept of Natural Resources, Timber Harvest, Western Washington, 1986 -92
and BST Consulting, East Whatcom Economic Development Plan, Sept. 1999.
Section III
Page 111 -]
C. Major Sectors of the Nonfarm Economy
This section provides more in -depth analysis of the local economy, primarily the manufacturing,
services, trade and government sectors. The section shows trends in employment at the
industry level, including the opportunities and challenges facing the major economic sectors in
Greater Whatcom
1. Manufacturing
Until the 1990s, growth in manufacturing in Whatcom County was relatively steady, responding
to business cycle declines during recessions, but it usually recovered and expanded strongly.
Manufacturing slumped in the late 1990s, primarily in the food processing and paper production
industries. Recent cuts by some major employers, including closure of the G -P pulp mill, have
created challenges for the early 2000s. The size of the manufacturing sector, along with its
relatively high payroll, is an important dimension to the economy. The payroll is proportionately
large compared to the number of jobs: 14% of all jobs and 20% of the county's wage base
comes from manufacturing. Average annual wages in the sector for 2000 were $37,325, the
highest of all employment sectors.
While manufacturing has declined as a share of total employment in the county, job growth in
the county has outperformed the state. Since 1990, county jobs grew 1 % on average, while the
state declined 0.5% per year. Until recently, lumber and wood products performed well in the
county, while they have declined overall in the state for the last decade.
Unfortunately, U.S. /Canadian trade policy affecting timber imports is adverse to many Whatcom
County wood products employers. Most softwood timber used by wood products manufacturing
companies -- for products like roof trusses, siding, and door and window moldings -- originates
from Canada. These companies are commonly called "remanufacturers:' With the expiration of
the Softwood Lumber Agreement, the U.S. imposed countervailing duties and tariffs up to 29%
on Canadian softwood imports, effectively increasing the cost of production for these firms. This
is jeopardizing their operation, as buyers will seek product from duty-free countries like Chile or
substitute products. A recent survey of local firms by Whatcom Council of Governments
confirms threats to their operations that have materialized with the U.S. Commerce
Department's March 22, 2002 decision. Several hundred direct jobs are at stake in
Whatcom County if firms downsize and even relocate to British Columbia to avoid the
costincreases.
The composition of industrialization is changing in the county. Historically dominant
manufacturing industries in the county are declining in significance to total manufacturing.
These "Big Six" manufacturing industries include lumber and wood products, food
processing, petroleum refining, transportation equipment, primary metals and paper
(shown in bold on the following table). Each of these industries employed at least 800
workers in 2000. Chart 13 shows that collectively these industries provided 78% of all
manufacturing jobs in 1981. By 2000 their share declined to 67% or 6,330 jobs. In particular,
food processing plants, the two major petroleum refineries, primary metals such as the Intalco
Alcoa Works aluminum plant and paper processing such as the G -P tissue mill have been flat or
slightly declining in job growth.
Transportation equipment and wood products have increased their shares slightly, but economic
and policy events during 2001 -02 are hurting these industries (the aviation recession/Boeing
suppliers, and the softwood lumber dispute).
Section III
Page III -8
Job reductions announced in 2001 largely impacted the Big Six, including cuts at Georgia -
Pacific, Alcoa Intalco Works and Trident Seafood, which totaled about 750 losses (much of the
Intalco reduction was early retirement). In addition, Blaine -based Geographics, Inc, a maker of
laser letterhead stationery shed about 100 employees. These declines are significant because
they include some of the highest paying jobs in the county.
Opportunities for significant manufacturing job growth are provided among a number of smaller
industries, collectively shown as Other Manufacturing Industries on the chart. Among this
group, the Top Six Fastest growing manufacturers (shown in italics on the accompanying table)
provided 1,872 jobs in 2000. These industries currently account for about 3% of all jobs in
W hatcom County. However, the job numbers have rapidly expanded from 529 jobs in 1981 for
a 6.9% annual growth rate. They include instruments, industrial machinery, apparel and textiles
and electronic components.
Chart 14
Significant Manufacturing Industries
Share of Mfting Jobs Whatcom County
40%
35%
30
25%
15%
10%
5%
0%
1981 1983 1985 1987 1989 1991 1993 1995 1997 1999
Other Mlting Intlusiries Food and Kindred Products --t— Lumber and Wood od
Pructs
Primary Metal Industries —I Petroleum and Coal Products —o- -Paper and Allied Products
— Transportation Equipment
section III
Page III -9
Industries Ranked by Growth'
1981 -00
2000
2000
Annual growth
# iobs
# firms
MANUFACTURING TOTAL ---------- - - - - --
1.5%
9,413
336
Growth
rank
1
Instruments and Related Products
11.7%
204
9
2
Industrial Machinery and Equipment
10.0%
458
34
3
Apparel and Other Textile Products
7.1%
226
17
4
Rubber and Misc. Plastics Products
5.6%
403
16
5
Textile Mill Products
5.5%
227
7
6
Electronic & Other Electric Equipment
4.9%
354
14
7
Transportation Equipment
3.8%
883
33
8
Printing and Publishing
3.6%
502
35
9
Lumber and Wood Products
3.5%
11409
64
10
Fabricated Metal Products
3.5%
392
25
11
Furniture and Fixtures
3.2%
11
4
12
Food and Kindred Products
0.7%
1,438
41
13
Chemicals and Allied Products
0.6%
97
4
14
Petroleum and Coal Products
0.3%
820
4
15
Primary Metal Industries
-1.3%
963
5
16
Paper and Allied Products
-1.4%
817
2
17
Stone, Clay, and Glass Products
-3,9%
147
13
18
Misc. Manufacturing Industries
-5.3%
62
9
2. Services
As the largest job sector in the W hatcom economy, the service sector is also the most diverse in
terms of job descriptions and skill levels (ranging from domestic services to law firms). The
service sector has grown the greatest over the past 30 years at a 5.9% annual average growth
rate. Annual wages of $22,330 in 2000 are lower than the average county wage of $26,295,
suppressed by the large amount of entry level and lower skill jobs.
Chart 15 and Table 5 below show the trends in major service employment providers. Health
services are the largest single industry with 29% of all jobs. St. Joseph Hospital in Bellingham
is the second largest employer in the county according to WorkSource Whatcom's recent
inventory (August 2002). There are over 300 firms that provided diverse health care services
around the county, and as an industry it pays above average wages. The demand for skilled
health care employees is high in Whatcom County but a shortage exists.
Three other industries provide approximately one -third of all service jobs: Business service
industries are getting boosted by many technology -based (information services and Internet -
related) companies that have started -up and moved to the Bellingham and Whatcom County
area over the past two and a half years. Examples are call centers including the VoiceStream
Wireless technical and service support center and the AT &T Broadband & Internet Services
technical support center expansion. A number of software development firms have also located
section III
Page 111 -10
in the county. There has been significant expansion in communications systems providers.
Bellingham is the first small community in western Washington to have a class "A" co- location
center for businesses to locate their computer servers and make secure high -speed broadband
internet connections. Because of a surge in technology -based business investments, the May
2001 issue of Forbes Magazine ranked the Bellingham metropolitan area as the 14th best
place for business investment in the U.S. among smaller cities.
The member organizations and social services category includes a large network of non-
profit and charitable organizations in the county. Non - profits provide a significant economic
development benefit within Whatcom County. A recent analysis completed for the Whatcom
Community Foundation and Whatcom Council of Nonprofits (Paul Schissler Associates, Inc.
July 2000) of 149 mutual benefit, church and public charity organizations (excluding St. Joseph
Hospital) shows that these businesses collected and spent almost $100 million for their
endeavors in 1997, with a large share of revenues originating outside the county. As added
value, there is the benefit of offsetting costs by alleviating social problems, improving the quality
of life and enhancing the education of the community.
The Other Services category includes a variety of 12 industries identified in the table.
Collectively they account for 40% of the service jobs, surpassing the health service industry in
1990 as the largest source of jobs. The most significant employers include engineering and
management services, amusement and recreation services, and hotels and lodging. The
vitality and importance of tourism in Whatcom County is shown by the strong growth in
recreation and lodging employment. Engineering and management services provide well -
paying technical jobs and have grown with the appeal of living in Whatcom County and support
for the diverse manufacturing base.
Chart 15
Significant Service Industries
Share of Service Jobe Whatcom County
50°/
451/6
40
-
35%
30
25%
20°/
15%
10°/
5/
.. �. , , .,,,..X..,,,
0%
1981 1983 1985 1987 1989 1991 1993 1995 1997 1999
All other Semces�Heatlh Servces - > =&sinass Services SOCaI Services tix�Menbersh'p Qgan zaf
Section III
Page III -1 t
1981 -00 2000 2000
Ranked by Growth Annual growth # iobs # firms
SERVICES TOTAL- - - - - -- 5.2% 16,822 2,497
1
Private Households
11.1%
803
2
Engineering & Management Services
8.4%
1,280
3
Educational Services
7.6%
519
4
Business Services
7.5%
21138
5
Auto Repair, Services, and Parking
6.8%
629
6
Amusement & Recreation Services
6.2%
1,215
7
Social Services
6.1%
1,850
8
Hotels and Other Lodging Places
5.5%
916
9
Legal Services
5.0%
329
10
Membership Organizations
4.0%
1,394
11
Health Services
3.7%
4,866
12
Personal Services
2.8%
536
13
Miscellaneous Repair Services
2.0%
205
14
Museums, Botanical, Zoological Gardens
n/a
21
15
Motion Pictures
-1.6%
100
16
Misc. Services
-13.5%
21
firms exceetls
3. Retail and Wholesale Trade
Trade has grown 4.1% annually since 1970. Retail employment is 80% of all trade, while
wholesale comprises 20 %. Retail and wholesale trade combined is 26% of total employment
and is as large as the service sector. However, retail has declined as a share of total
employment because it has stagnated since 1991 and the services sector has grown faster.
Retail employment is spread unequally around the county. While Lynden and Ferndale have
significant retail businesses with relatively active downtown areas, Bellingham's role as the
regional economic hub dominates retail employment in the county. Bellingham accounts for
68% of taxable retail sales in the county with 40% of the county population.
Annual wages in retail trade are the lowest of all employment sectors at $16,189 in 2000.
Wholesale trade wages are much higher, at $33,420, ranking third behind manufacturing and
construction. Wholesale trade presents a growth opportunity in economic diversity.
Haggen, Inc. and Brown & Cole, with corporate offices for their supermarket chains based in
Bellingham, provide a significant portion of nondurable wholesale trade jobs, in addition to retail
employment. They rank 8`h and 131h accordingly among private companies statewide based on
revenues.
Despite the concentration of retail trade jobs the sector has not grown since 1991, when the
Canadian dollar began its rapid descent. In particular, the border cities of Blaine and Sumas
have been adversely impacted by the declining exchange rate. Between 1995 and 2001,
taxable retail sales declined 2 %, 10% and 27% in Everson, Blaine and Sumas respectively
according to the Washington Dept. of Revenue. Given its isolated location from the U.S.
mainland, Point Roberts has also been seriously impacted, losing most of its retail base.
section III
Pegg III -12
In addition, the terrorist events of September 11 and subsequent tightening of border security
significantly slowed border crossings, further compounding trade reduction by Canadian visitors.
This has created more adverse near -term impacts on retail sales and will impede wholesale
trade between Canada and the trade corridor reaching to San Diego. From 2000 through 2001
taxable retail sales in the county declined 1.7 %.
Table 6 - Taxable Retail Sales
and
Table 6 shows that in addition to Bellingham, Blaine and Lynden have a large retail base for the
size of community. This is an indicator of the ability to draw shoppers. However, the
Semiahmoo Resort obscures Blaine's figure and does not indicate the strength of the retail
base, which has dwindled in the community. The problem of retail leakage or sales lost in the
smaller cities to Bellingham and to neighboring B.C. communities is a persistent problem
identified by communities. Vibrant, supportive commercial centers are important to all
communities in Greater Whatcom, including rural areas.
Chart 16 and Table 7 below, similar to the information on manufacturing and services, shows
the patterns of growth by trade industries. One positive trend is that wholesale trade has grown
strongly at 3.5% annually. The two dominant retail industries, similar to any other local
economy, are food stores and eating/drinking establishments. Combined they provide 43%
of the trade jobs, with restaurants paying the lowest wages.
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 dimension to the tourism economy. The value of quality of life and
environmental conditions is an important consideration to economic development.
Section III
Page III -13
Taxable
Retail Sale
'Share of
Per Capita
2000
and 2001
total
Bellingham
$
1,467,165,850
$
1,460,012,993
68.3%
$
21,842
Unincorp County
$
311,608,300
$
295,359,593
14.5%
$
4,198
Lynden
$
166,535,571
$
160,746,788
7.7%
$
11,453
Ferndale
$
104,993,506
$
101,103,804
4.9%
$
11,988
Blaine
$
69,872,461
$
67,329,410
3.3%
$
18,534
Everson
$
14,412,036
$
13,769,404
0.7%
$
7,082
Sumas
$
10,595,407
$
10,948,101
0.5%
$
10,834
Nooksack
$ 4.460 772
$
4.858 740
0.2%
5,242
Total
$
2,149,642,903
$
2,114,128,833
100%
$
12,886
and
Table 6 shows that in addition to Bellingham, Blaine and Lynden have a large retail base for the
size of community. This is an indicator of the ability to draw shoppers. However, the
Semiahmoo Resort obscures Blaine's figure and does not indicate the strength of the retail
base, which has dwindled in the community. The problem of retail leakage or sales lost in the
smaller cities to Bellingham and to neighboring B.C. communities is a persistent problem
identified by communities. Vibrant, supportive commercial centers are important to all
communities in Greater Whatcom, including rural areas.
Chart 16 and Table 7 below, similar to the information on manufacturing and services, shows
the patterns of growth by trade industries. One positive trend is that wholesale trade has grown
strongly at 3.5% annually. The two dominant retail industries, similar to any other local
economy, are food stores and eating/drinking establishments. Combined they provide 43%
of the trade jobs, with restaurants paying the lowest wages.
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 dimension to the tourism economy. The value of quality of life and
environmental conditions is an important consideration to economic development.
Section III
Page III -13
The Bellingham - Whatcom Convention and Visitors Bureau reports the following facts about the
local tourism industry:
• Visitors spent $300 million in Whatcom County in 2000, up 11.5% over 1999. (Source:
Washington State County Travel Impact study, Dean Runyan Associates, November 2001)
• In descending order, visitors spend their money for dining, retail sales, recreation,
ground transportation, accommodations and food stores.
• Whatcom County ranks fifth out of the 39 counties in terms of visitor spending (told).
• The industry-wide average wage (2000) is $11.92 per hour. An average full -time worker
in the Washington travel industry earns about $24,800. (Source: Travel industry Employment in
Washington State, Dean Runyan Associates, April, 2002)
• There are over 6,800 travel - generated jobs in Whatcom County representing 7.5% of
total employment. The state average for tourism employment is 4.5% (ibid).
Chart 16
Significant Trade Industries
ebare Of Trade Jobe Whatoom County
50%
2000
2000
Industries
45%
Annual Growth
# jobs
40%
Trade Total --------- - - - - --
35%
17,482
1,451
30%
1
25%
5.4%
20%-
238
15 %T --
Wholesale Trade -- Nondurable Goods
5.2%
1,703
r u
3
Apparel and Accessory Stores
4.0%
O%
60
4
1991 1983 1985 1987 1989 1891 1993 1995 1997 1998
MII OIM1er Befall Tetle —F Egpna and dlnlOng Races
Ford stores - ->a— W10169ala Trade- Ourable Goods
—llF— WM1alesale Trade— Wntlureble Goods
able 7
1981 -00
2000
2000
Industries
Ranked by Growth
Annual Growth
# jobs
# firms
Trade Total --------- - - - - --
3.4%
17,482
1,451
rowth Rank
1
Wholesale Trade — Durable Goods
5.4%
13782
238
2
Wholesale Trade -- Nondurable Goods
5.2%
1,703
160
3
Apparel and Accessory Stores
4.0%
568
60
4
Food Stores
3.8
2,397
100
5
Furniture and Home furnishings Stores
3.6%
642
95
6
Automotive Dealers & Service Stations
3.5%
1,520
140
7
General Merchandise Stores
3.5%
1,523
18
8
Miscellaneous Retail
3.4%
1,574
226
9
Building Materials & Garden Supplies
2.9%
621
48
10
Eating and Drinking Places
2.2%
5,152
366
Section III
Pegs 111-14
5. Government
Public employment has grown steadily since 1970 at 2.3% annually. Government is a visible
and important sector: eight of the twenty largest employers in the county are public sector.
Local government employment accounts for almost 2/3 of all public jobs, dominated by K -12
education. There are seven school districts in the county, which provide a strong local
employment base. The state government share of county government employment is slightly
higher share than the statewide average of 26 %. This is due to the location of Western
Washington University, Whatcom Community College and Bellingham Technical College in the
county. W W U is currently the largest employer in the county. The federal government is the
smallest share but in some ways is the most significant with the international border and
presence of the U.S. Customs Service and the Border Patrol.
External forces on the county significantly affect government employment. This includes tax
limitation initiatives, which have curtailed state and local revenues that provide local services, an
economic slowdown that is forcing cutbacks in state services and employment, and the
September 11 terrorist events. However, the risk of terrorist activities and the heightened
security and defensive measures by the national government should increase federal
employment in the county.
Local chambers of commerce, the Whatcom Council of Governments, legislators and
Congressional representatives have pressed for more border patrol officers and customs
officials to increase the level of border security and improve the "secured mobility' of
commercial and resident traffic across the border. Border delays are an impediment to
economic development in the county since the trade relationship between Canada and the U.S.
is an important source of economic activity.
Chart 17 depicts the share of jobs by level of government. Tribal employment is normally
accounted within the Government SIC classification, but is not reported separately in the data
provided for this report by the Employment Security Department.
Chart 17
Public Sector Job Mix in Whatcom County
LOCAL
61.6%
FEDERAL
STATE
30.1%
section III
Page III -15
6. Other Economic Sectors
a. Construction and Mining
The current share of these sectors is 8% of the county economy. Mining is a small share and
primarily consists of sand and gravel pits. There were 9 firms reporting 108 mining jobs in 2000,
representing a tiny fraction of goods - producing employment. Like agriculture there are value
aspects of mining not shown by reported employment numbers. Construction employment has
grown steadily since 1988. Construction is a dynamic industry, rising and falling with national
economic conditions and boom -bust cycles. For example, construction peaked in 1971 from
work on the ARCO refinery project. Construction employment that year reached 4,360 (a 15%
share of all non -farm jobs). Unfortunately, the completion of that project coincided with the
1973 -75 national recession, and all the added jobs and more were lost by 1974. A boom in
residential housing construction has accompanied the rapid population growth over the last
decade, accounting for most of the new jobs. Public works projects are also a significant
contributor to local construction employment. Low interest rates have helped stimulate
construction in the region. In 2000, construction jobs paid an annual wage of $36,118.
b. Transportation, Communications and Public Utilities
This is a smaller share of the county economy amounting to 5% of all jobs, growing steadily
since 1970 except for a decline of about 500 jobs from 1979 to 1982. Wages are above
average at $32,570 annually. Predominant industry shares include trucking and warehousing
(28.3 %), communications (12.7 %) and transportation services (10.8 %). The expanding
industries include trucking and air transportation. Reloading facilities in Sumas are a benefit to
trucking and rail transportation. Declining industries include communications, water
transportation and electric/gas and sanitary services. The loss of United Express passenger air
service to the Bellingham International Airport in 2001 cut into air transportation growth. While
communications is still a major share it has fallen the most, from almost Ye of the sectoral
employment since the heyday of regulated phone service (1970s).
Trade with Canada and intermobility with the rest of Puget Sound are outside impacts on the
industry. In addition, the September 11 terrorist events created short-term reductions on
transportation services, but the related fiscal impact on transportation providers was serious.
For example, The Port of Bellingham incurred $600,000 in additional security costs to comply
with federal air security requirements. If secured mobility is attained, inter -modal sources of
transportation can become a growing economic opportunity in the county.
c. Finance, Insurance and Real Estate (FIRE)
The FIRE sector has grown strongly in expansion years, but has declined significantly during
economic recessions. This sector represents 4% of jobs in 2000. The largest number of jobs is
concentrated in banking and real estate, and these industries are the source of growth.
Recently lenders such as Bank Northwest have created new branches in the small communities
and rural areas of the county, providing employment and a community resource. The Sterling
Bank branch in Blaine administers a community revolving loan fund, funded by the city, for
downtown businesses. The highest paying profession recorded - -- securities and commodity
brokers, earning $84,362 on average in 2000 - -- have helped to boost the overall average
earnings in the sector to $30,754.
section III Page III -16
7. Business Size Distribution
Whatcom County is home to small business: the average business firm in the county employs
11 people. Table 8 shows the breakdown of firm size by number of firms and employment.
Among 6,294 area firms, about 98% employ 100 people or less. There are only 3 firms that
employ 1000 or more employees. The primary generators of employment are firms ranging
from 20 to 249 employees. Firms in this range provide about 46% of all jobs.
Table 8
Whatcom County
Size of firm distribution for all ownerships,
Including multiple establishments, first quarter 2001
Size Range
# of Firms
% of Total
Employment
% of Total
0 -4
4,051
64.4%
5,520
8.2%
5 -9
970
15.4%
6,431
9.5%
10 -19
651
10.3%
8,887
13.1%
20 -49
396
6.3%
12,027
17.8%
50 -99
130
2.1%
8,809
13.0%
100 -249
70
1.1%
10,132
15.0%
50 -499
17
0.3%
5,736
8.5%
500 -999
6
0.1%
4,766
7.0%
1000+
3
0.05%
5,360
7.9%
Total
6,294
100%
67,668
100%
Source: WasNi on State Labor MankelInt000ation
These numbers show that economic development recruiting efforts would be best concentrated
in the mid -range sized firms in terms of employment impact; and business development,
retention and expansion services should focus on the smallest firms, which provide the largest
foundation for the county economy.
8. Largest Employers in Whatcom County
rank
Employe
Employed
nk
Employer
Employe
1
Western Washington
7
BP Cherry Point Refinery
485
University
2
St. Joseph Hospital
2
Olympic Health Management
413
3
Bellingham School District
3
Lummi Indian Business
403
Council
4
City of Bellingham
4
Resort Semiahmoo
375
5
Haggen, Inc.
5
Georgia- Pacific (GP)
350
6
Whatcom County
6
Wal -Mart
346
7
Ferndale School District
7
Bellingham Technical College
325
8
Alcoa - Intalco Works
8
Whatcom Community College
320
9
Brown & Cole Stores
9
Mt. Baker School District
318
10
Voicestream
0
AI ha Technologies
317
Source: WorkSource Whatcom, August 2002.
section III
Page III -17
D. Income Measures
Despite rapid economic growth nationally in the 1990s, various income indicators for the county
show that income disparity and lags in income growth are a continuing challenge. For example,
Census 2000 data show county median household income is about $40,000. The cities of
Bellingham, Blaine, Everson, Ferndale and Burnes are below that level, while Lynden and
Nooksack report higher household incomes. The farm income dependent areas of the county
prosper or struggle depending on agriculture conditions and pricing activity, but data tend to
inflate the actual living incomes of farm communities. Among small cities, the city of Everson
qualified as a "low to moderate" income community according to 1990 Census data. LMI figures
for 2000 have not been released as of this writing.
1. Personal Income
Per capita personal income (PCI) is a common measure of the overall economic well being of
the residents in an area. It captures all sources of earned and unearned income. Table 9 and
Chart 18 compare the changes in per capita personal income for the county, the state, and the
nation. PCI growth in Whatcom County has not kept pace with the state or national average
growth. Since 1970 the county share of U.S. PCI has trended downward, while Washington
State maintained a steady share.
Table 9 —
Per Capita Personal
Income
Whatcom
Washington
Percent of
U.S. Avg.
County
State
Nation
Coun
State
1970
$
3,781
$
4,205
$
4,095
92%
103%
1980
$
9,162
$
10,913
$
10,183
90%
107%
1990
$
17,345
$
20,017
$
19,572
89%
102%
2000
$
23,133
$
31,230
$
29,469
78%
106%
Source: US Bureau of Economic Analysis,
May 2002
115%
110%
105%
100%
95%
90%
85%
80%
75%
Chart 18
Per Capita Personal Income Diverges
(percent of U.S. average)
Whatcom County
Washington State
78%
1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
Source: US BEA, May 2002
section M Page 111 -18
Even though employment growth has surged, wages from earnings growth has lagged. Dividing
the total wages paid in an area by the annual average employment in that area equals annual
average covered wages. "Covered" means jobs not covered by the unemployment insurance
program are excluded; however, approximately 85% of all employment in the state is covered
under the program. Chart 19 shows the annual average wage in W hatcom County and
Washington State since 1970.
The wage gap that is apparent in per capital persona income is even wider by this measure. In
2000, the average annual wage difference between the state and the county is almost $11,000.
Adjusted for inflation, average wages in W hatcom County have declined 16% over the last 30
years, while wages in the state increased 8%. The Seattle area largely affects the state
average. Removing King County decreases the state average to $29,320 in 2000.
Chart 19
Annual Average Real Wages
fallen short of inflation
540,000
5381000 -- —.. -- - -
536,000
Washington State
Whatcom County
#01000 -F .�
1970 1972 1974 19M 1978 1980 1992 1996 1986 lase 1930 1992 1994 1996 1998 20pp
Value of annual wages in crosWnt 2W] dollars. slum,: Wa,hm9rOn oepatlmrX of Emgoyment secul
This overall decline of the actual wages has been a subject of considerable discussion because
it is not unique to Whatcom County, but prevalent in many rural areas. Some of the
explanations considered include the following:
• Pay declines within industries caused by international competition, restructuring, the
decreased power of unions to set wages, and other factors.
• An overall decline in high paying goods - producing jobs accompanies a large increase in
lower paying trade and services jobs.
• The substitution of employee benefits for direct pay increases.
• Increase in part-time workers.
Table 10 below shows the annual average wages by sector in 1981 and 2000. The total
average wage is highlighted to show earnings above and below the county average. The higher
than average earnings in manufacturing and construction confirm the value of goods - producing
employment in the county. However, the stronger job producers, like services and retail trade,
Section III Page III -19
which makeup 45% of the county economy, pay lower than average wages. On the positive
side, service wages have grown at a faster rate than total wages, so there may be
momentum at the upper paying end of service professions.
Table 10 - Annual Average Wages (current dollars)
3. Poverty Levels and Rates
The poverty rate is measured by the percent of the population at or below the federal poverty
level. The poverty level threshold was $16,600 for a family of four in 1998. With economic
expansion over the past decade, the rate in the county has steadily declined from 12.3% in
1989 to 11.1% in 1998. However, poverty is a larger problem in the county than the state.
Washington State's average poverty rate was 9.9% in 1998.
The double -digit poverty rate in Whatcom County indicates an increased need for
essential social services and affordable housing.
Source: U.S. Census Bureau, Housing and Household Economic Statistics Division, Small Area
Estimates Branch, December 2001. Official Census 2000 figures are not yet available fora 2000
comparison.
E. Economic Forecast
The City of Bellingham, Whatcom County, the Port of Bellingham, and the cities of Blaine,
Everson, Ferndale, Lynden, Nooksack, and Burnes jointly hired ECONorthwest (ECO) of Seattle
to create twenty -year forecasts for major employment sectors, among other data reported
earlier in this document ( Whatcom County Population and Economic Forecasts, May 2002).
The purpose of the forecast is to provide a database for ongoing analysis on the future of the
local economy. While no forecast is perfect, the model results from ECO are the best current
information and use the most accurately available modeling techniques. The last economic
forecast for Whatcom County was produced by Western Washington University in 1994.
Planned economic development efforts and unanticipated events will both shape the actual
direction of the Greater Whatcom economy.
Section III Page III -20
Annual
1981
2000
Growth
MANUFACTURING
$ 22,363
$ 37,325
2.7%
CONSTRUCTION +MINING
$ 20,295
$ 36,118
3.1%
WHOLESALE TRADE
$ 16,478
$ 33,420
3.8%
TRANSPORTATION
$ 20,535
$ 32,570
2.5%
FINANCE, INSURANCE, & REAL
ESTATE
$ 12,667
$30,754
4.8%
GOVERNMENT
$16,805
$28,783
2.9%
TOTAL AVERAGE
$ 15,077
$ 26,295
3.0%
SERVICES
$ 10,962
$ 22,330
3.8%
RETAIL TRADE
$ 8,821
$ 16,189
3.2%
3. Poverty Levels and Rates
The poverty rate is measured by the percent of the population at or below the federal poverty
level. The poverty level threshold was $16,600 for a family of four in 1998. With economic
expansion over the past decade, the rate in the county has steadily declined from 12.3% in
1989 to 11.1% in 1998. However, poverty is a larger problem in the county than the state.
Washington State's average poverty rate was 9.9% in 1998.
The double -digit poverty rate in Whatcom County indicates an increased need for
essential social services and affordable housing.
Source: U.S. Census Bureau, Housing and Household Economic Statistics Division, Small Area
Estimates Branch, December 2001. Official Census 2000 figures are not yet available fora 2000
comparison.
E. Economic Forecast
The City of Bellingham, Whatcom County, the Port of Bellingham, and the cities of Blaine,
Everson, Ferndale, Lynden, Nooksack, and Burnes jointly hired ECONorthwest (ECO) of Seattle
to create twenty -year forecasts for major employment sectors, among other data reported
earlier in this document ( Whatcom County Population and Economic Forecasts, May 2002).
The purpose of the forecast is to provide a database for ongoing analysis on the future of the
local economy. While no forecast is perfect, the model results from ECO are the best current
information and use the most accurately available modeling techniques. The last economic
forecast for Whatcom County was produced by Western Washington University in 1994.
Planned economic development efforts and unanticipated events will both shape the actual
direction of the Greater Whatcom economy.
Section III Page III -20
Table 11 compares actual historical growth rates to forecasted annual growth rates from the
ECONorthwest model for nonagricultural employment. Chart 20 shows the future level of jobs
for each sector.
Table 11 - Non -farm Jobs Average Annual Growth Rates by Sector'
Whatcom County
Sectors
Trade
Trade
mining
Nonfarm Jobs
40,000
35,000
30,000
25,000
20,000
15,000
10,000
Historical
1990 -00
3.4%
3.8%
2.7%
1.3%
3.3%
1.6%
2.7%
1.0%
ECO Forecast
2000 -20
3.9%
3.4%
2.5%
2.1%
1.8%
1.6%
1.1%
0.5%
2.4%
Chart 20
Whatcom County Job Forecast
�Servlees
'-M(- Retail Trade
Government
Construction
-'«- Manufacturing
Manufacturing
Finance
-I Transportation
— Wholesale Trade
--
-- - -- -
5,000
0
2000 2002 2004 2006 2009 2010 2012 2014 2016 2018 2020
Source: Whatcom County Population and Economic Forecasts. ECONoiMwest May2002
Table 12 compares actual historical growth rates to forecasted annual growth rates from the
ECONorthwest model for annual average wages. Chart 21 shows the future level of wages for
each sector.
Section 111 Page III -21
Table 12 - Non -farm Wages Average Annual Growth Rates by Sector*
Whatcom County
Historical
ECO Forecast
Sectors
1990 -00
2000 -20
Services
3.9%
4.1%
Finance
4.4%
3.4%
Government
3.6%
3.2%
Construction
3.6%
2.0%
Wholesale Trade
3.4%
1.9%
Retail Trade
2.5%
1.6%
ransportation
3.0%
1.4%
Manufacturing
3.0%
1.1%
'excludes mining
Chart 21
Anneal Dollars Whatcom County Wage Forecast
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
FFinance
Government
�Constructlon
ti servlcea
Manufacturing
Transportation
ti— Transportation
— Wholesale Tratle
—MF- Recall Trade
2000 2002 2004 2008 2008 2010 2012 2014 2016 2016 2020
Section III
Page III -22
Forecast Overview
The forecasts of Whatcom County employment and wages depend on state forecasts of
employment for each of the eight forecasted employment sectors, as well as the size of the
county's labor force. In addition to county population, the labor force forecast depends on the
size of the labor force participation rate in the state and wages in the service and retail sectors,
those being the two largest sectors for employment in the county.
Economy.com forecasts Washington State employment to grow a cumulative total of 34% from
2,716,000 jobs in 2000 to 3,626,700 jobs in 2020. The forecasts suggest that W hatcom County
jobs will continue to grow at a much more rapid rate of 60% cumulatively, from 67,500 in 2000
to 107,700 in 2020. This scenario would result in Whatcom County receiving 4.4% of
Washington State job growth through 2020.
Employment growth among the eight forecasted sectors will be uneven. The service and retail
sectors will contribute the majority of the new jobs over the next 20 years. These are already the
two largest sectors in the county, at 17,800 and 15,000 jobs respectively. The service sector, in
particular, will continue to see rapid growth. By 2020, the county forecast expects there will be
approximately 35,000 service jobs in the county, nearly doubling from present levels. ECO
forecasts an additional 7,900 retail jobs for a total of 22,900 in 2020. Wage growth does not
match the level of employment growth in all sectors. For example, average wages in services,
government and finance will grow more rapidly than other sectors according to the forecast.
Services and Retail
Service employment shows continued opportunity. The rapid growth in service - related jobs
mirrors national and state trends that have occurred for several decades. Economy.com's
national forecasts suggest that these trends will continue through 2020 and beyond.
Washington State's economy will continue to become more and more dominated by service
jobs. The forecast for service jobs account for 33% of W hatcom County employment in 2020, up
from 26% in 2000. In the model, service sector employment is directly related to local service
sector wages, as well as statewide sector employment. Retail wages, the lowest of all sectors,
are expected to remain flat as retail moderates as a share of the employment base.
2. Finance, Insurance, and Real Estate
The finance, insurance, and real estate (FIRE) sector will also experience rapid employment
growth, but will not contribute as many new jobs because of the relatively small base.
Employment in this sector is driven by gross state product (GSP), local wages in the sector, and
inflation. ECO forecasts an increase of 1,700 jobs in this sector from 2000 to 2020, amounting
to a total of 4,300 jobs in 2020. Wages in finance, however, are forecast to surpass all other
employment sectors.
3. Manufacturing
The forecast expects manufacturing employment to decline in the short run, and then grow
slowly through 2020. This is in contrast to the expected decline in manufacturing across the
state, both during the current recession and over the next 20 years. In the short run, analysts at
Economy.com cite the current malaise in manufacturing, worsened by the layoffs at Boeing and
uncertainty in certain other industries like timber and aluminum production for this decline. The
expected recovery in the state economy, however, will not likely improve the state's
section III Page 111 -23
manufacturing prospects. Economy.com forecasts a loss of 78,000 state manufacturing jobs
from 2000 to 2020. A continually expanding local economy will bring manufacturing job growth
in Whatcom County to a total of 10,700 jobs in 2020, up from 9,700 in 2000. However, as a
share of the county economy manufacturing may continue to decline from 14% presently to 10
by 2020. Wages from manufacturing jobs in turn lose momentum and are eclipsed by service -
related employment wages over time.
4. Wholesale Trade
The reduction in manufacturing in the state is one of the driving forces behind the forecast for
Whatcom County wholesale trade employment. The forecasts for the short-term decline in
Whatcom County wholesale trade (a loss of 553 jobs from 2000 to 2002) reflect historic trends
and statewide forecasts. This decline reflects (1) Whatcom County wholesale trade employment
declines during previous periods of statewide Boeing layoffs, and (2) forecasted declines in
statewide manufacturing and wholesale trade. This sector proved to be the most challenging to
forecast and the most susceptible to surprises (upward or downward, in terms of employment)
in the next few years. The forecast detail explains the volatility of this sector.
5. Transportation, Construction, Government
Employment in both the transportation and construction sectors will grow at rates reflecting state
trends. Construction employment will grow somewhat faster, reflecting recent and expected
future population growth rates that are higher for Whatcom County than the state as a whole.
Construction is expected to expand to 11 % of all jobs by 2020. Growth in the government sector
depends largely on total sector employment across the state and gross state product, which
reflects the tax base needed to support government operations. While government is forecast
to decline as a share of total jobs, wages in the public sector are anticipated to increase a faster
rate than most economic sectors.
F. Clustered Industry Development
A popular theory to encourage economic development is industry clustering. A cluster means
concentrating or co- locating lead or final product industry and the industry's suppliers within a
region (county or group of counties). According to a recent report by the Northwest Policy
Center at the University of Washington (December 2001), "The central hypothesis is the
economic success of a region depends on the competitiveness of key industry clusters in the
region. Individual companies succeed or fail not just due to their own efforts, but in part by the
success of the cluster in the region." This means that by understanding the strong sectors in
region and the interrelatedness of suppliers and final producers, economic development
resources can be focused to enhance local industry competitiveness.
This "Cluster Strategies for Washington" report evaluates regions in the state of Washington. In
the northwest region, which includes Whatcom, Skagit and Island counties, the manufacturing
industries shown to have competitive advantage compared to the state average include wood
products, aluminum, concrete /cement and brick, and food processing. Tourism and
health care are close to the state average. A challenge to this type of analysis is that the
dominant industries are also some of the industries that have been losing shares in the local
economy (considering cutbacks at G -P, Intalco and agricultural processing). However, the
opportunity that clustering strategy provides is it recognizes the basic importance of these
industries to the local economy. They are critically important and are not going to disappear.
section III Page III -24
The message is more strategic assistance, investment and coordination by economic
development service providers can improve the performance of these industries and boost
economic opportunity within the network of suppliers that work with these industries.
The report recommends a number of next step policy recommendations to the Washington
Office of Trade and Economic Development. Opportunities to collaborate with OTED to conduct
more specific analysis for the county will be pursued with the ongoing implementation of the
Greater Whatcom Comprehensive Economic Development Strategy. The report is available at
http://www.oted.wa.gov/indox.htm.
G. Whatcom County Competitiveness Study
In November 2000, the Port of Bellingham and the Whatcom County Public Utility District #1 co-
sponsored an "Evaluation for Industry Recruitment in Whatcom County and Cherry Point." One
purpose of the study was to evaluate Whatcom County as a candidate for site selection by
outside companies.
To accomplish this, Bellingham was benchmarked against the following cities in the Pacific
Northwest: Burlington /Mt. Vernon, WA; Spokane, WA; Vancouver, WA; Yakima, WA; Medford,
OR; Salem, OR; Boise, ID; and Langley /Surrey, B.C., Canada
Based on criteria including operating conditions, operating costs and living conditions,
BellinghamNVhatcom County is considered "competitive" for business attraction, differing by
these factors:
• Rated above average in labor quality.
• Some disadvantage in utilities due to lack of large areas for development fully served by
utilities.
• Some disadvantage in higher real estate costs compared to benchmarked communities.
• No differentiation in labor availability, labor management relations, real estate
availability, Washington state incentive programs, permitting, labor costs, taxes, and
quality of life.
The advantage in labor quality is due to a highly educated workforce, high rankings by the state
in education quality, and a strong work ethic and productivity. However, employers identified
additional needs for technical training opportunities.
For industrial targeting efforts the study determined the following:
The best industrial sectors for targeting success include small (20 -50 employees) to
medium -sized (50 -250 employees) firms. Data on business firm distribution on Table 7
supports this conclusion. The study also recommends that target locations include
businesses in the Seattle and B.C. market, as well as industries already present in the
county that are ready for expansion and retention.
Industrial targets include these types of firms:
section III Page III -25
Manufacturing:
• Electronic components (antennas, switches, recording equipment components,
microwave components)
• Sporting and athletic goods (manufacturing and assembly of equipment)
• Electro- medical equipment (CAT scanners, audiological equipment, pacemakers,
surgical support equipment)
• Bread /cakes/related products (fresh and frozen bakery products)
Finance. Insurance and Real Estate and Services:
• Back- office services (customer and technical support, processing services)
Services:
• Computer related services (programming, database and software development)
The study concluded with these policy considerations:
✓ The Whatcom area should dedicate the most attention to marketing its infrastructure,
site development and regulatory actions toward small to medium -sized firms (not heavy
industry).
✓ Cherry Point industrial development and a deepwater port should be pursued cautiously,
and there should be no investment of public dollars into infrastructure until there is a firm
industrial user.
✓ Marketing and development takes time for results; at least two years to follow this
strategy.
✓ There should be a single, central point of contact for economic development marketing.
✓ Realism that, from the view of outsiders, Bellingham is the marketing face of Whatcom
County for business location.
✓ High - prospect companies need skills not readily available in the county. Therefore,
there is a need to conduct an inventory of current occupations/skills, matched to the
needs of target industries. An aggressive workforce development and customized
training effort in response to business needs is also necessary.
Source.: Deloitte and Touche, "Evaluation for Industry Recruitment in Whatcom County and Cherry Point -Conducted
for the Port and PUD #1, November, 14 2000
H. Special Need Criteria for Economic Development Programs
Due to industrial restructuring causing job loss, workforce needs, and natural/ economic
disasters, some economic development programs become eligible to assist with transition.
Greater Whatcom presently meets or could potentially meet these conditions:
1. Fisheries Decline -- Due to coast wide curtailment of groundfish species fisheries,
Northwest governors requested and received disaster assistance to help communities
impacted by fishery declines (Magnuson- Stevens Fisheries Management Act
Emergency Assistance.) In Whatcom County, Bellingham and Blaine are eligible
communities for program funds administered by the state of Washington.
2. Underemployment--- For communities showing evidence that there is employment of
workers at less than full time, or at less skilled tasks than their training or ability permits,
Section III Page III -26
there may be additional consideration for economic development assistance. This is a
labor force challenge in the Greater Whatcom economy.
3. Trade Adjustment Assistance - -- The U.S. Community Adjustment and Investment
Program was created in connection with the passage of the North American Free Trade
Agreement to provide credit to new or expanded businesses in communities with
significant job losses due to changes in trade patterns with Canada and Mexico.
Whatcom County will be among only 9% of all counties with certification (and among
eight Washington counties) The U.S. Departments of Commerce and Labor provide
additional programs for assistance to businesses and workers impacted by trade
adjustment.
4. Closures and Resource Depletion — Greater Whatcom communities may be given
special consideration for EDA assistance due to sudden of impending job losses.
Eligibility is based on job loss as a percentage of total labor force. Additional
consideration is available because of the area's traditional dependency natural resource
industries in timber and fishing.
5. Natural disasters, including Terrorist Attacks -- Whatcom County's natural features
and proximity to the Canadian border create a stronger likelihood of being affected by
emergency events.
6. Other Circumstances - -- There may be other unanticipated situations that may require
an infusion of outside resources. The CEDS is amendable and can incorporate special
needs as they occur.
section III Page III -27
ENDNOTES TO SECTION III
Definitions of data terms:
Nonagricultural or nonfarm employment - -- Reported by the Washington State Employment
Security Dept (ESD). It includes full- and part-time wage and salary workers who received pay
during the pay period including the 12th of the month, by place of work. Excludes proprietors,
the self - employed, members of the armed services, unpaid family members, workers in private
households and agricultural workers. This series is used in the overall trends in employment
section of the report because the series was available back to 1970.
Covered employment and wages -- Reported by the ESD. Includes jobs and wages through
employers covered by the state unemployment insurance program. Approximately 85% of all
employment in the state is covered under the program. Excluded are self - employed and
contractors. It includes some agricultural employment. Covered employment is used in the
report's economic sector analysis because more detailed industry data was available. In
addition, the series was available from 1981 to 2000 for this report.
Annual average covered wages - Provided by the ESD. Calculated by covered wages divided
by total covered employment. This measures wage and salary earnings generated by the
particular job.
Per Capita Personal income - -- Calculated by the U.S. Bureau of Economic Analysis. All forms
of income divided by population: wages, salaries, government transfer payments, retirement
income, farm income, self - employed income, proprietors' income, interest, dividends, and rent,
but not contributions toward social insurance. Business and corporate incomes are not
included. This measure is
Constant Dollar Covered Wages - -- In the income section of the economic report, annual wages
in the county is charted in 1990 dollars. This represents the trend in annual earnings removing
the eff ects of price inflation. The result is $26,295 in actual earnings in 2000 is worth $19,958 in
1990 dollars. The Consumer Price Index, which equals 100 in 1990, is divided into the actual
data series to determine constant or real dollar earnings.
Economic data source materials:
"The Whatcom County Profile," Washington State Employment Security Department,
March 2001. This report provided some of the basic narrative information for the CEDS
economy section.
Besides the EDS, other agencies such as U.S. Bureau of Economic Analysis and
Census Bureau provided the basic economic data in Sections II and III.
section III
Page III -28
SECTION IV: THE ECONOMIC DEVELOPMENT SYSTEM
I. Service Providers
A. Business and Economic Development Services
The Port of Bellingham's Economic Development Division completed a "Who's Who in
Economic Development" survey. The survey identified organizations in Whatcom County
involved in business development activities. These activities include the categories of business
attraction/recruitment, start-up, and retention /expansion. Four service providers, in no particular
order, provide the primary direct assistance for business development: the Small Business
Development Center, the Economic Development Council, the Port of Bellingham and the
Bellingham - Whatcom Chamber of Commerce.
In addition, the seven municipalities in the county provide varying levels of economic
development services, usually determined by budget and staffing capacity. The Public Utility
District #1 and Council of Governments provide infrastructure planning and service delivery in
utilities and transportation, respectively. The two tribes support economic development
programs through the Lummi Indian Business Council and the Nooksack Business Corporation.
The Convention and Visitors Bureau is the lead tourism development and promotion entity,
while the Center for Economic and Business Research at Western Washington University
provides economic analysis and education.
Greater Whatcom is fortunate to have diverse local resource providers. Although a broad array
of entities exists, many resources are not well known, well coordinated or sufficiently funded to
meet the needs of communities and businesses in Whatcom County. The purpose of this
section is to identify and describe the range of service providers, shown below in no particular
order.
1. Small Business Development Center at WWU
Western Washington University's College of Business and Economics' Small Business
Development Center (SBDC) is a nonprofit organization whose goal is '10 stimulate regional
economic growth and help build a profitable business." It is one of 22 centers in the state and
serves the territory of Whatcom, Skagit and Island counties and is the university's primary
linkage to the business community. The center's core services include providing confidential
counseling, secondary research, and conferences and seminars to business owners and
managers.
The center has been a primary provider of business assistance in the area since 1981. Roughly
one - quarter of the Whatcom County business population over the last five years has used the
SBDC's services based on client load. The center offers confidential business counseling to
existing small businesses and assists with loan packaging, strategic marketing, business plan
development, cost analysis, management issues, market research, exporting assistance, and
other general business problem solving. It does not actively recruit new businesses, although it
does provide technical assistance to potential businesses if requested by the EDC by helping
with financing, identifying potential incentives, business planning, market information, resource
and referral needs.
Section IV
Page IV-1
In addition, the SBDC partners with the Bellingham - Whatcom Chamber of Commerce Business
Service Center in providing business development assistance. Each entity is contracted with
the City of Bellingham to provide the service.
Finally, the SBDC operates a Business Retention and Expansion (BRE) program, by sub-
contract from the EDC. The BRIE program has two primary goals:
1) To provide technical assistance to manufacturers and other targeted key industries, like
technology and telecommunications, for retention and expansion issues.
2) To survey these businesses to determine their assistance needs and to get feedback on
the strengths and weaknesses of doing business in W hatcom County.
In April 2001, the SBDC completed a survey of local businesses through this contract. The
survey revealed two main points: 1) that companies want to provide feedback and have
great insight as to how the community is serving them, and 2) individual communities
have specific needs that differ from each other and from W hatcom County as a whole,
and they need to be addressed as such. The survey also serves as an excellent tool to
continue to test the temperature" of the different communities and to track how things are or are
not improving on an annual basis. It provides the opportunity to target specific communities or
even specific sectors, should that detail be desirable.
The SBDC faces challenges in its ability to serve the business community. The demand for
business consulting services is outstripping the ability for existing staff to meet the needs.
Appointments are booked out 3 -4 months ahead. One strategy to meet the demand is by
creating satellite offices elsewhere in the county. The cities of Lynden and Sumas are providing
funding for locating satellite services in those communities, and use current SBDC staff.
2. Bellingham - Whatcom Economic Development Council
The Bellingham - Whatcom EDC is a private non - profit organization governed by an 18- member
board. Its membership includes private business and local government jurisdictions in the
county. The stated purpose of the EDC is `Yo encourage and facilitate commercial and industrial
business investments in Whatcom County." Businesses in retail, personal services, and
farming, fishing and forestry sectors do not fall within this mission. The council works to
encourage and assist business investment through attraction, expansion and formation of
business, whether they are outside companies coming into the county, expansions by existing
businesses, or local business formation.
The EDC uses multiple means to promote W hatcom County for potential business investment
expansion, including individual contacts, networking, promotional materials, event
implementation and participation, direct mail, advertising and a website.
Ongoing programs and projects of the EDC include the following:
• Site & building inventory
• Small business retention /expansion — this is a contract provided by the state Office of
Trade and Economic Development (OTED), which is subcontracted to the local SBDC
• Telecommunications Solution Group
• Tele -Tech Conference & Exhibit
• Marketing campaigns such as'Think Bellingham."
section IV Page IV-2
• Revolving Loan Fund (see Financial Programs below for narrative)
• Federal Procurement Program
In addition, the EDC provides a forum to promote services and infrastructure development in the
following areas:
• Venture capital groups to be active in Whatcom County including creation of incubators
• Developers to provide more adequate sites and buildings in order to accommodate
business investments
• Telecommunications providers to further improve and expand business services in
Whatcom County
• Local and state governments to improve and expand local infrastructure to help
accommodate business investments
3. 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 the
Bellingham/Whatcom County area. As a front door for business interests, the chamber
diagnosis the situation and then can refer them to the SBDC and other support organizations.
In addition to promoting general business interests, the chamber provides direct business
development assistance through its Business Service Center. The goal of the center is 'Yo
coordinate and provide community resources to new and existing businesses in order to
enhance their ability to grow, prosper and provide newjobs in Bellingham." It is operated in
partnership with the SBDC and the City of Bellingham. The scope of work focuses on new
business support and referrals to other community resources; developing small business
seminars aimed at training small businesses; and providing a special focus on downtown
Bellingham to enhance business and housing redevelopment. The Business Service Center
provides a physical office space to allow business development to start, having access to
phone, high speed internet, meeting facilities and professional services. Their scope was
recently expanded countywide.
The center has been used to respond to the July 2001 layoffs at the Georgia- Pacific mill and
reductions at Alcoa Intalco Works. Through a collaboration with the Workforce Development
Council, the center was designated the "community convener" to help former workers find re-
employment. The center's role is to provide a "soft landing" between federal and state
resources and local employers.
Finally, the chamber is a lead private sector -based organization in cross - border issues and
commerce development with Canada. It took a lead, with Whatcom Council of Government
(WCOG) and other groups, to respond to the Sept.11 terrorist events and the compounding
problems at the Canadian border. The chamber sponsors forums on international trade and
works with WCOG, the Port of Bellingham, and the Discovery Institute on mobility needs across
the border. About 40% of the business contacts at the chamber are Canadian - based. They
have a contract with the state Office of Trade and Economic Development to expand the sales
and international trade capacity of companies in the county and increase the competitiveness of
area businesses.
Section IV Page IV-3
The chamber provides a monthly report documenting business development opportunities with
international firms, which are primarily Canadian. Opportunities to locate firms in the Port of
Bellingham's Foreign Trade Zone (FTZ) are shared directly with the Port and International
Market Access, the FTZ operator.
4. Port of Bellingham
The Port of Bellingham is a special purpose unit of government serving the residents of
Whatcom County. The Port's mission is `to fulfill the essential transportation and economic
development needs of the region, while providing leadership in maintaining Whatcom County's
overall economic vitality through the development of comprehensive facilities, programs and
services."
The Port of Bellingham is administered by a three - member commission, which is elected,
countywide, to four -year terms. While the Port has access to limited public funds through
property taxes, it differs from other public agencies because it doesn't rely solely on those funds
to fulfill its strategic objectives. Under its unique organization, the Port has the ability to directly
engage in various lines of business that earn financial returns. In this regard, it uses business
means to accomplish public ends.
The Port has four core business activities:
• Public transportation terminals, including marine terminals (cargo and passenger),
passenger aviation and air cargo (Bellingham International Airport), and passenger rail.
• Small and large- parcel industrial and commercial real estate projects properties,
including the development of the Bellwether on the Bay, a key destination on the
waterfront for both tourists and local citizens in Whatcom County.
• The stewardship of Whatcom waterfronts for recreational boating and commercial fishing
marinas with a total moorage of more than 2,400 boats, at Squalicum Harbor in
Bellingham and Blaine Harbor in Blaine.
• Infrastructure development on Port properties, including the installation of fiber optics,
with the goal of new business recruitment.
In addition to business objectives, the Port is committed to three public priorities that are
supported by property tax revenues:
Environmental cleanup projects to return compromised sites back to commercial value.
Development of public amenities to improve community and visitor access to the
waterfront and sponsorship of special community events and activities.
Economic development programs to determine infrastructure requirements and to work
with area communities to plan for new business recruitment and economic growth.
Program emphasis includes countywide economic development planning, community
outreach and new business recruitment, and tourism initiatives. This priority includes the
Partnership for a Sustainable Economy initiative.
5. Municipal Economic Development Programs
Cities in the county that budget and manage programs to assist with community and economic
development include Bellingham, Blaine, Everson, Ferndale, Lynden, Nooksack and Sumas.
However, they vary in staffing and program management levels. Generally, the larger cities can
Section lV Page IV -4
obligate more resources than the smaller. Due to budget constraints, which have been
worsening as of late, many of the smaller communities are not able to commit funds to local
economic development efforts. A purpose of the Partnership for a Sustainable Economy is to
leverage more resources for broad services to the smaller communities to assist in development
and implementation of their individual economic development programs.
Chambers of commerce serve the six smaller cites and a few unincorporated community areas.
Chambers in Ferndale and Lynden are professionally staffed, while Blaine, Everson /Nooksack,
Sumas, Birch Bay, Mt. Baker Foothills and Point Roberts are volunteer organizations.
a. Bellingham Office of Neighborhoods and Community Development
The Office of Neighborhoods and Community Development is a division of the Executive
Department of the City of Bellingham. Its mission is 'Yo identify and, where appropriate,
recommend City participation in public - private initiatives that meet identified community needs."
The office's focus of resources and public - private initiatives is on improving and expanding
affordable housing choices, addressing human service needs, stimulating economic
development and improving Bellingham's distinct neighborhoods and its downtown area.
For budgeting purposes the division is divided into the following groups:
1. Community Development Block Grant (CDBG) and HOME Investment Partnership
Program Grant: Provides for housing development and preservation, neighborhood
revitalization, economic development, human services and significant portions of other
special projects. This area also administers and /or utilizes additional funding sources
such as the EPA Brownfield Assessment Demonstration Pilot Grant.
2. Tourism Activities and Facilities: Supports the Tourism Commission and its
responsibilities for planning the city's tourism development program. Provides ongoing
financial and technical support for the Mt. Baker Theatre, Convention and Visitor's
Bureau, Ski to Sea Festival, Bellingham Music Festival and administers smaller tourism -
related activities grant program.
3. Mt. Baker Theatre: Provides the capital maintenance and continuing restoration of the
theatre building. Oversees the contract with the Mt. Baker Theatre Group.
4. Parking and Downtown Services: Manages publicly owned off - street parking facilities,
on- street metered and un- metered spaces, and sidewalk environments in the downtown.
5. Commercial Space Rentals: Manages retail shop rentals in the Commercial Street
Parking Plaza, Mt. Baker Theatre, La Fiamma Building and the Railroad Avenue Parking
Plaza.
6. City Center Development: Supports the implementation of the City Center Master Plan.
Coordinates action with the Downtown Renaissance Network. Also addresses the
economic development functions of the Business Development Center and the
BellinghanV Whatcom County Economic Development Council.
Section IV Page JV.5
b. Community of Birch Bay
The Economic Development Committee is one of four chamber committees working closely with
the Marketing, Membership and Events Committees and overseen by the chamber board of
directors. The Economic Development Committee's mission is as follows:
"The Economic Development Committee of the Birch Bay Chamber of Commerce is
composed of residents, members and businesspersons committed to creating economic
opportunities that encourage the growth necessary to support existing and future Birch
Bay commerce, while preserving the area's ecosystems and improving its quality of life."
The committee has been meeting since the fall when a new chamber board of directors was
selected and the committee structure re- organized.
c. City of Blaine
The City Manager and the Community and Economic Development Department are primarily
responsible for facilitating economic development in the City of Blaine. 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'Nision" for future growth and development in Blaine. In addition, the city
has completed and is implementing nine development and capital improvement plans.
d. City of Everson
Everson has a citizen task force on economic development that worked on prioritizing economic
development tasks from the Economic Development Plan of 1999 as well as from other plans
and public meetings held in the past. The chamber of commerce is working on some of the
goals and has completed brochures. The city's Planning Commission has a plan for a defined
entrance to the city and is now formulating how to accomplish it. They also arranged for racks
at three different places in the city for the chamber brochure. The Everson Improvement Group
took care of raising money and planting for trees and flowers in the downtown area and
received tat place from Whatcom in Bloom in 2000 and 2nd place in 2001.
e. City of Ferndale
The city has an Economic Development Department, although staffing is limited to the City
Administrator and other city officials on a part-time, as- needed basis. There is also the
Ferndale Economic Advisory Board, which consists of one City Council member, the City
Administrator, and the President and four members of the Chamber of Commerce. The board
provides advice and policy direction to the Council and Economic Development Department.
The board and the department are taking steps to develop an economic development
plan /strategy for the city. To that end, a survey of city residents and businesses was conducted
in 2001 to determine citizen perceptions of the business environment, identify areas of the
section IV
Sege IV-6
economy where growth should be supported, identify constraints to business establishment and
development, and determine operational needs of the business community that could be
assisted by city policy decisions or direct action. Based on the responses, the board and the
department contracted with a professional economic consultant to prepare the first draft of an
economic development plan for the city. That draft document is expected in the spring of 2002.
f. City of Lynden
Lynden's economic development program is public - private model that makes the best use of
existing resources and is working to benefit the Lynden community. In September 1998, the
City of Lynden adopted its first Comprehensive Economic Development Plan. This plan
describes the need for public awareness of the benefits of a strong economy, includes the
community's goals for economic development and strategies to meet those goals, and studies
the development of property for industrial uses. The city and the Lynden Chamber of
Commerce work together on economic development issues.
The council and chamber jointly appoint the Lynden Economic Development Team to advise
them on economic development issues. The team serves to research economic development
issues and recommends policies and actions to the City Council and Chamber of Commerce to
enhance the economy and remove barriers to effective economic development. They also meet
with prospective business and industry persons and provide them with local support for their
project. The team meets monthly to work on a specific work program designed to help the
community meet its goals for a healthy economy. The city chamber provides staff and funding
for the team's work.
The partnership between the city and the chamber for economic development is reflected in
other ways as well. The city provides funding for the Lynden branch of W W U's Small Business
Development Center and the chamber provides the office space. The satellite office of the
SBDC opened in September of 2001 and funding for the office is secure through 2002.
g. 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. This included:
• Establishment of a Central Market District (CMD) targeting pedestrian- oriented
commercial activities;
• Establishment of a Business Campus District (BCD) adjacent to the commercial core
where live -work areas could co -exist with light industry and traditional residential
development;
• Establishment of a Parks and Trails System accessible to both the CMD and the BCD.
Since adopting the plan, the Nooksack City Council has been making steady progress on
implementing the identified tasks. In 2001, Nooksack rezoned the areas to be included in the
CMD and BCD and adopted new zoning regulations for these areas. Nooksack also adopted
design and performance standards to guide development within the BCD. Nooksack is currently
working on updating its Parks and Open Space Plan to lay the groundwork for development of
the Parks and Trails component envisioned in the plan.
section IV
Page IV-7
It. 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 haul road capable of supporting Canadian - weight (heavier than
normal) truck traffic. The industrial area has been expanded several times, and now includes
seven major tenants. The city continues to pursue tenants for the industrial park.
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 industries located in
town. 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 consultant has now
worked with more than 20 businesses over a span of two years.
Sumas provides grants and/or low- interest loans to public or private developers that require off -
site infrastructure improvements in order to accommodate their projects. It is funded through
utility revenues similar to the city of Blaine.
6. Public Utility District #1 of Whatcom County
Public Utilities District #1 (PUD) was formed by a vote of the citizens of Whatcom County in
1937. Its mission is "to serve as the people's advocate by managing the utility resources of
Whatcom County for the benefit of the people it services. " Specifically, the PUD handles the
processing of industrial water, provides electricity to specific customers, and provides wholesale
telecommunications infrastructure anywhere in Whatcom County, with the exception of
electricity in Blaine and Sumas, which were municipal utilities at the time the PUD was formed.
The PUD could also have sewer authority, but would require a vote of the people of Whatcom
County.
The PUD's current customer base is largely industrial:
Water Customers: Alcoa/Intalco, SP /Cherry Point, Birch Bay Water and Sewer District,
Burlington Northern/Santa Fe Railroad, Chemco, Chevron, City of Ferndale, Grandview
Industrial Park, Hovander Dairy Farm, Irrigation Users, Phillips/Tosco, Praxair, Puget
Sound Energy, Texaco, Tenaska, and Trillium.
Electrical Customers: Phillipsfiosco, PUD Pump Station #1, and PUD Pump Station #2.
Telecommunications: In 2001, the Commission approved the creation of the
telecommunication utility "InfiNET ". The function of the utility is to install a fiber optics
infrastructure on a wholesale basis County wide. In April 2002 the PUD purchased a six
mile loop of Avista Communications' fiber optics line in Bellingham in the first phase of
the network. The entire fiber optic backbone is scheduled for completion by October
2003.
Some facts about PUD:
• It is the largest water processor in Whatcom County;
Section IV Page IV -8
• PUD purchases power on the behalf of its customers from the Bonneville Power
Administration (BPA);
• It owns and operates an electric transmission line and substation;
• It has two SPA 115kv points of delivery and 1 point of delivery of 230kv;
• Non - potable water service is supplied from two treatment plants drawing water from the
Nooksack River.
A three - member commission elected to 6 -year terms governs the PUD. The district has a
general manager and 14 full -time employees at three locations in the Ferndale area.
7. Whatcom Council of Governments
Established in 1966, Whatcom Council of Governments (WCOG) is a body of elected
representatives representing the seven cities, Whatcom County and the Port of Bellingham,
which act together in reviewing and solving regional issues. It is the mission of the Whatcom
Council of Governments "to provide general and special governments with an organized means
of providing a more unified response to significant issues of this regional Whatcom County
community, "and to that end, the Council of Governments shall serve these functions:
• Provide a forum for the exchange of interests, ideas, and plans among jurisdictions and
private members.
• Survey, investigate, analyze, research, and report upon issues of concern to the
members.
• Serve as the Metropolitan Transportation Planning Organization and the Regional
Transportation Planning Organization.
• Conduct programs of interest to members concerning interjurisdictional issues and
suggest or recommend alternatives for dealing with issues in order to promote
compatibility and assist members to understand issues from other jurisdictional
perspectives.
• Provide members with an informational resource (with planning, grant writing, technical
expertise), and program execution administration within budget limitations and agreed
work scope.
• Cooperate with other commissions (State, Federal, and - as appropriate — Canadian),
and public and private agencies in the planning, development, and execution of
programs of interest to members.
• Represent, upon direction of the members, for the jurisdiction's united interest with other
regional councils as appropriate, before State, Federal, or Canadian authorities.
8. Bellingham/Whatcom County Convention and Visitors Bureau
The Bellingham Whatcom Convention and Visitors Bureau (CVB) has been the leader since
1978 in developing the visitor industry in Whatcom County. Governed by an 18- member board
of directors, the bureau is a non - profit community agency funded by member dues, city and
county hotel /motel tax revenues, the Port of Bellingham and other groups interested in
bolstering the local economy through tourism and convention development. About 400
members belong to the CVB.
Section N Page N -9
Tourism is among the state's top four industries in terms of economic impact and employment.
As the area's full -time destination management organization, the CVB actively markets the
region nationally and internationally by:
1. Personally greeting and servicing the needs of nearly 160,000 visitors who stop at one
of four visitor centers.
2. Responding to nearly 30,000 written, e- mailed and telephone inquiries each year.
3. Soliciting convention and group meeting business through sales, participation in
regional trade associations and coordinating lead referrals to the membership.
4. Marketing local businesses to visitors and residents through advertisements and a
website that are collectively viewed by 11 million people annually.
5. Creating and coordinating publicity and representing the County at consumer and
professional trade shows.
5. Represent the industry locally and in Olympia on a variety of legislative issues affecting
tourism.
9. Lummi Nation
Lummi Indian Reservation
The Lummi Indian Reservation, established by the Point Elliot Treaty of 1855, is comprised of a
small island, a massive floodplain, and two upland peninsulas stretching into the Strait of
Georgia and defining Lummi and Bellingham Bay. In aggregate, the Reservation is
approximately 20,500 acres, 8,000 of which are tidelands. (Lummi Planning Department, Lummi
Indian Reservation Land Ownership Status and Demographics August 2001)
Based on an extrapolation of 1990 U.S. Census Data, the total population on the Lummi Indian
Reservation is estimated to be 4100, of which 2100 are of Lummi descent. Most of the other
2700 Lummi Tribal Members live in neighboring communities.
The vast majority of the population on the Lummi Indian Reservation can be categorized into
one of three income groups; non - tribal members, self- sufficient tribal members, and
impoverished tribal members. The non - tribal population, comprising just 49% of the total
Reservation population, is living comparatively well with 74% of the total income. (U.S. Census
Bureau, 1990 Census Whatcom County Tract 108)
Lummi Nation Government
The Lummi Indian Business Council (LIBC) is the duly governing body of the Lummi Tribe of the
Lummi Indian Reservation by authority of the Constitution and By -Laws of the Lummi Nation as
approved on April 10, 1970 by the Assistant Commissioner of Indian Affairs. The Lummi Nation
became self - governing under congressional legislation in 1994.
The political and government to government relations of the Lummi Nation are managed by the
LIBC. The LIBC is comprised of eleven (11) members of the community, whom are elected to
three -year staggered terms through public elections by the community at large. Upon election,
the LIBC annually elects from within its own number a Chairman, Vice - Chairman, Secretary,
and Treasurer. These elected officials represent the highest decision - making authority for the
Nation and are strong advocates of the CEDS planning process. (Lummi Indian Business Council,
Lummi Nation Comprehensive Economic Develooment Strategy, June 2002)
Section IV Page IV -10
Economy
The Lummi People, like all Coast Salish Tribes, have been fishers since the dawn of time. On
September 4th 2001 the Lummi Indian Business Council unanimously passed a resolution
declaring the Lummi Nation an Economic Fisheries Disaster Area. The chronic poor returns of
some species of salmon in the mid -late 1990's severely limited commercial fishing opportunities
and in 2001 there was no commercial season at all. The 373 dislocated fishermen supported
an estimated 1,119 dependents, approximately 23% of the entire Lummi Tribal population.
(Lummi Nation Jobs Now Program, Fisher Statistics, November 2001)
Recent Lummi Indian Business Council efforts to diversify the economy have included the April
2002 launch of the Silver Reef Casino creating 280 new jobs, 140 Native American, for
Whatcom County. Scheduled to start in the spring of 2003, is the $25 million construction of a
new K -12 school. Currently the Lummi Indian Business Council is initiating economic
development efforts towards attracting wide - audience manufacturers. The intent is to further
the diversification of the Lummi Nation economy and also to extend the reach of the regional
economy to markets outside of Whatcom County. (Lummi Indian Business Council, Lummi Nation
Comprehensive Economic Development Strategy June 2002)
Regional Relationships
Historically the Lummi Indian Business Council has maintained an arms - length relationship with
the Port of Bellingham, and would converse occasionally during multi - jurisdictional issues. More
recently, both parties have mutually laid a foundation for a closer relationship, and the Lummi
Indian Business Council looks forward to actively participating in projects with the Port of
Bellingham that benefit all residents of Whatcom County. (Source: LIBC)
10. Nooksack Tribal Development
Like the Lummis, the Nooksack tribe includes aboriginal people of present day Whatcom
County. Populating the Nooksack Valley, the present tribal lands are located near Deming in
eastern Whatcom County on approximately 166 acres. Today the Nooksack Indian Tribe is
more focused on economic development and diversification than ever before. The 1,500
member tribe owns a successful casino and tribal leadership is moving forward with extensive
plans for expansion and development. An eight member Tribal Council, which recently
chartered the Nooksack Business Corporation, an entity formed solely for the purpose of
entering into and operating for - profit business ventures, governs the tribe. Corporate board
members include several tribal chairmen and appointees from the business community. The
Tribal Chairman serves as Chairman of the Board. The Director of Economic
DevelopmenVGeneral Manager of the casino for the tribe serves as Board Chief Executive
Officer.
Nooksack Business Corporation will pursue investment opportunities in a variety of sectors
including manufacturing, management, finance and commercial property. The most significant
undertaking to date is the recently announced $20 million community development project along
Mount Baker Highway. The tribe and its Nooksack Business Corporation are working with local
government and community leaders to build a foundation for economic growth throughout
eastern Whatcom County. Educational, cultural, governmental and commercial elements
comprise the community-wide development plan, which will include such diverse elements as a
natural science center, ball fields, RV park, casino expansion and a hotel. By the end of the
three -to- five -year development period, the tribe will employ 375 people (an addition of 150
employees), maintain an $8.5 million annual payroll, earn revenues of more than $28 million
annually and deliver a recurring local economic impact of $40 million each year.
Section IV Page IV -11
11. Center for Economic and Business Research at WWU
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. The
center assists the college and the university in meeting its responsibilities as a regional
university by providing a focus for economic and business research activities. 'A primary
mission of CEBR is to establish the college as a business conditions analysis, forecasting, and
resource center for Washington State /British Columbia and the northwest Washington regions.
The Center takes particular interest in the economic interaction of the Pacific Northwest States
and the Western Canada region.
As resources for the center increase, its efforts will include more interdisciplinary studies.
Anticipated examples are: the interpretation of financial, marketing, management, decision
sciences, computer software and other business trends, and how specific issues in these fields
may affect Washington state, regional business, and economic activity. It is anticipated that
CEBR and WWU will be working in partnership with the implementation of this strategy to
enhance public education about the regional economy.
B. The Workforce Development System
Historically, the natural resource -based economy generated employment requiring a workforce
with high school education and on the job training. According to Washington's Strategic Plan for
Workforce Development (June 2000), the emergence of the knowledge -based economy and
more technology related family wage jobs will require postsecondary education, but not
necessarily a four -year degree. The report concludes that Washington does not have enough
qualified people to take advantage of higher wage opportunities. This is why an integrated
workforce development system is important to the development of the state and local economy.
If employers cannot find trained workers, the economy will slow.
In addition to the statewide "skills gap," an underlying workforce challenge in Whatcom County
is underemployment. Underemployment means that the labor force's qualifications or education
exceeds their job requirements. Therefore many may not be meeting their earning potential.
The large number of lower wage retail and service jobs, many of which are non - career track
jobs, contribute to underemployment. Additionally, the area labor force is more highly educated
than the personal income levels indicate.
Within Whatcom County, the primary workforce development system includes public education
facilities, the Northwest Workforce Development Council and the WorkSource- Whatcom Career
Center.
1. Public Education Facilities
Labor force quality is regarded highly in Whatcom County primarily because of a well- educated
population, and the quantity and quality of public education institutions in the county. The
county is fortunate to have a 4 -year university (Western Washington), a technical college
(Bellingham) and a community college ( Whatcom).
Participation rates describe the level of service provided by the public education system to
each county in the state. It measures the fall headcount enrollment in 2 -year and 4 -year public
Section IV Page IV -12
institutions as a share of population over 17. There are 5 technical colleges, 28 community
colleges and four 4 -year public institutions statewide. The State of Washington Office of
Financial Management calculates participation rates. Table 13 shows in 4 out of 5 participation
rate measurements, W hatcom County exceeds the state average and ranks within the top 10
counties statewide. The county excels in the community and technical college enrollment
measurement, which is the most meaningful for workforce development. These students are
more likely to be in continuing education, re- training or are non - traditional students already in
the workforce and improving their employability.
Table 13
.for students applying from within state
Source., "Higher Education Enrollment Statistics and Projections, 2001 -2003 Biennium, July 2001, OFM
a. Primary and Secondary (K -12) System
W hatcom County has seven public school districts. They are (in order of enrollment size)
Bellingham, Ferndale, Mount Baker, Lynden, Meridian, Blaine, and Nooksack Valley ( Nooksack,
Everson and Sumas). These school districts oversee a combined total of 44 school sites.
W hatcom County also has 13 private K -12 schools.
During the 2001 -02 school year, the districts' enrollment totaled 26,053 students. More than half
of the enrollment is in grades 9 -12. The rate of growth in enrollment has slowed considerably
over the last six school years. Population growth and housing development grew rapidly through
the mid- 1990s. The enrollment boom suggests that young families were a large part of that
influx. The stabilization of enrollment since 1999 suggests that more retirees started moving to
the county because population growth remained strong.
Chart 22
Public K -12 School Enrollment
Whatcom County Districts
Section IV Page IV-13
County rate
Rank
State Rate
Community and Technical College Enrollment
5.26%
4
3.82°%
Public 4 -year University Enrollment
2.06%
7
1.71%
Public 4 -year, lower division enrollment
0.60%
18
0.62%
Public 4 -year, upper division enrollment
1.20°%
6
0.90%
Public 4 -year, graduate /professional
0.26%
6
0.20%
.for students applying from within state
Source., "Higher Education Enrollment Statistics and Projections, 2001 -2003 Biennium, July 2001, OFM
a. Primary and Secondary (K -12) System
W hatcom County has seven public school districts. They are (in order of enrollment size)
Bellingham, Ferndale, Mount Baker, Lynden, Meridian, Blaine, and Nooksack Valley ( Nooksack,
Everson and Sumas). These school districts oversee a combined total of 44 school sites.
W hatcom County also has 13 private K -12 schools.
During the 2001 -02 school year, the districts' enrollment totaled 26,053 students. More than half
of the enrollment is in grades 9 -12. The rate of growth in enrollment has slowed considerably
over the last six school years. Population growth and housing development grew rapidly through
the mid- 1990s. The enrollment boom suggests that young families were a large part of that
influx. The stabilization of enrollment since 1999 suggests that more retirees started moving to
the county because population growth remained strong.
Chart 22
Public K -12 School Enrollment
Whatcom County Districts
Section IV Page IV-13
Performance statistics in Whatcom County exceed the state. In the 1998 -99 school year,
Whatcom County students met an 87.0% graduation rate, and a 3.3% dropout rate. The
statewide graduation rate was 84.2% and the dropout rate, 3.9 %. Source: Office of Superintendent
of Public Instruction
b. Western Washington University
Located in Bellingham, Western Washington University is one of six state- funded, four -year
institutions of higher education. The 195 -acre main campus sits on Sehome Hill overlooking
Bellingham Bay and parts of the San Juan Islands. The University was established by the
Legislature in 1893 as New Whatcom State Normal School. The college underwent several
name changes before becoming Western Washington University in 1977. More importantly, the
university implemented major changes in its mission, programs, and curriculum. It has been
ranked among the top, comprehensive, liberal arts institutions in the West.
For the past four decades, Western has taken special pride in the quality of liberal arts
programs required of all students. The university's academic divisions include the College of
Arts & Sciences, the College of Business & Economics, Fairhaven College, the College of Fine
& Performing Arts, Huxley College of Environmental Sciences, the Woodring College of
Education, and the Graduate School.
Fall 2000 enrollment included 12,307 full- and part-time students. Western now has 2,480 new
freshmen, its largest freshmen class ever, and 981 new undergraduate transfer students. About
92% of students come from Washington State with more than half coming from the South Puget
Sound area. Matriculated undergraduates totaled 11,836 while master's candidates and other
post baccalaureate students numbered 569. The university has students from 48 other states,
led by Alaska, California and Oregon, and from 36 other nations, led by Japan, Canada and
Korea.
c. Whatcom Community College
Whatcom Community College opened to the public in the fall of 1970, among the newest of the
state's community colleges. It was originally designed to serve the residents of Whatcom
County. Classes average 25 -30 students, allowing more individual attention from faculty.
Enrollment during the 1999 -2000 Academic year was 6,896 students (full time equivalent of
3,140).
The college offers Associate in Arts and Science degrees in academic, technical, and
professional areas, and a "Direct Transfer Agreement" (DTA) designed primarily for students
who plan to transfer to a four -year college or university with junior status in a liberal arts
program. The college offers opportunities to complete high school and special programs to
assist students in acquiring learning skills necessary for academic and occupational success.
The Associate in General Studies degree is designed primarily for students who do not plan to
pursue a specific technical or academic emphasis or transfer to a four -year institution but who
wish to receive recognition for completion of 90 credits of general Arts and Sciences college -
level learning. Coursework must be completed within specific distribution areas.
The college offers an Adult High School Completion program available to all students 18 years
of age or older. A contract, indicating courses required for completion is drawn up for each
student. High school credit is available for work experience and prior life experiences such as
Section IV Page IV -14
homemaking, volunteering, traveling, etc. College credit and high school credit may be earned
simultaneously.
WCC has certain Certificate Programs that emphasize training in specific occupational fields.
The College currently offers fifteen certificate programs, ranging from Accounting, Business
Information Systems, Early Childhood Education, Graphic Design, Medical Assisting, and Office
Administration. Other certificate programs can be designed by students to fit their individual
needs.
d. Bellingham Technical College
Bellingham Technical College (BTC) was founded in 1957 and is one of 34 community and
technical colleges operating under the State of Washington. The campus is located on 26
scenic acres overlooking Bellingham Bay, the San Juan Islands and Mt. Baker. The student
population of nearly 10,000 full time and part-time students has an average age of 31. It is
accredited by the Northwest Association of Schools and Colleges and the Commission on
Colleges.
BTC subscribes to a philosophy of partnerships for excellence among education, business, and
industry. Its mission states: "BTC is a learning community dedicated to creating a high quality
workforce through educational excellence and student success in collaboration with its diverse
communities. " Support from the local community has been instrumental in helping BTC achieve
its goal of quality technical /occupational education, which allows each student an opportunity to
pursue career goals through lifetime learning.
BTC collaborates with local high schools through the Running Start and Tech Prep programs.
The college also participates in the Worker Retraining and WorkFirst programs, playing a
significant role in aiding adults who must transition into the changing job market. Degrees of
Associate in Applied Science are available in 26 occupational programs and Certificates of
Completion in 37 areas.
Approximately 90% of the voc -tech graduates are placed in entry level or apprentice positions.
Course offerings include Electronics, Welding, Computerized Machining & Manufacturing
Technology, Industrial Electrician, and Business Management. More technically advanced
programs offered include Computer Automation /Electronics Instrumentation & Control
Technology, Computer Software Technology, and Computer Network Technology.
The college is committed to providing flexible training under contract to private employers to
meet their start-up training needs as well as to upgrade existing personnel.
Source: Individual web sites and 'Whatcom County Profile" (WA State Employment Security, Labor
Market and Economic Analysis Branch)
e. Workforce Readiness and Retraining Program
This program is administered through Whatcom Community College and Bellingham Technical
College. According to the Washington State Board for Community and Technical Colleges
District Report, both institutions exceeded their goals for number of vocational degrees and
certificates awarded. WCC also exceeded its goals for basic skills and transfer readiness.
section IV Page IV-15
Demands on retraining programs have been high due to layoffs in the Whatcom economy
during 2001. As a result, potential students have been turned away because of the lack of
state funding to expand courses. In particular, courses in computer instrumentation, electrician
training and health care have had to close for additional students. About $9 million in additional
funding is being sought from the state legislature in the 2002 biennium, which will not meet the
needs that community college administrators have identified.
2. Northwest Workforce Development Council
The Northwest Workforce Development Council (NWDC) was established in accordance with
the requirements of the Workforce Investment Act. It is a 26- member policy and oversight entity
responsible for organizing a comprehensive, region -wide response to the challenges of building
a highly skilled workforce. The NWDC is led by private business and has wide representation
from labor, education and other local organizations in the community. The council, in
partnership with local elected officials, develops and maintains a local unified plan for the work
force development system including, but not limited to, the local plan required by law.
The council is a powerful mechanism for comprehensive, community-wide workforce
development planning and coordination. It promotes closer integration of education, training
and employment efforts coupled closely with economic revitalization strategies. Strong
business participation ensures that job training is directed to meet the requirements of the
current job market as well as to prepare for the future needs of employers.
The council, in multiple productive partnerships, has a systematic approach to workforce
development programs in the Northwest Workforce Investment Area (comprised of Whatcom,
Skagit, Island and San Juan counties). They have had a functional partnership in place since
1992 with the objective of the integration of services across programs and across providers.
There are 18 different programs in the workforce development system and 28 other related
programs. Each program was established to fulfill certain purposes for certain populations of
customers. Northwest Partnership members include:
• Northwest Workforce Dev. Council
• Employment Security Dept.
• Dept. of Social & Health Services (Community Services Office)
• Bellingham Technical College
• Whatcom Community College
• Skagit Valley College
• Division of Vocational Rehabilitation
• Economic Development Association of Skagit County
• Skagit County Community Action Agency
• Farmworks Investment Program
• Job Corps
• Opportunities Industrialization Center
As the work evolves and the scope of design activities effect additional community stakeholders,
the partnership has restructured its processes and increased outreach and accessibility to the
following stakeholders, among others:
• Bellingham - Whatcom Chamber of Commerce and Industry
• Bellingham - Whatcom Economic Development Council
Section IV Page lV -16
• Division of Child Support
• Island District Economic Development Council
• Lummi, Nooksack, Upper Skagit, Swinomish, and Samish Indian Nations
• New Leaf, Inc.
• Northwest Regional Council
• WWU Small Business Development Center
• Whatcom and Island County Opportunity Council
3. The WorkSource - Whatcom Career Center
The WorkSource Center is a "one -stop' career center facility that provides all the information,
technology and services businesses need to thrive and job seekers need to achieve successful
careers. They represent a unique concept in the labor market — everything in one place.
WorkSource center services are delivered to customers in a variety of ways, including:
• Training programs and business consultations
• Self- directed efforts, such as kiosks or via the internet
• Group programs and activities, such as workshops
• One -on -one consultations
The core services, which are available onsite or through electronic access and are available to
all customers include:
• Free use of computers, copiers, phones, faxes and other career resources
• Internet access to jobs
• Job recruitment, referral and placement
• Classes on how to get and keep a job
• Information on the fastest growing jobs and wages
• Referral to training and other community services
• Access to Unemployment Insurance
• Translation services
WorkSource is a joint venture of organizations dedicated to addressing Washington State's
employment needs, including:
Business, Labor, Employment Security Department, Workforce Development Councils,
Community and Technical Colleges, Department of Social and Health Services, Workforce
Training and Education Coordinating Board, Superintendent of Public Instruction, and the
Governor's Office
Information on WorkSource is available at www.go2worksource.com
section IV Page IV -17
II. INFRASTRUCTURE AND PUBLIC FINANCE
A. Capital Facilities and Community Infrastructure
Section I evaluated the "software" of services for economic development. This section assesses
the quantity of physical infrastructure that can serve economic development in Whatcom County
or the "hardware." This is a countywide summary, which includes all municipal and some
county systems.
1. Water Systems
There are 366 public water systems in Whatcom County, 21 of which provide water to roughly
71 % of the county's residents. The remaining water demand for the county is satisfied by
approximately 16,000 private wells that draw water from aquifers in the county. According to the
Whatcom County Comprehensive Plan, "While a few major watersuppliers appear to have the
capacity to meet future demands, many of the county's water suppliers are nearing their legal
and physical capacity to supply water to their customers."
The Nooksack River is the major river in Whatcom County and provides domestic, agricultural,
and industrial water supplies to most of the county. The cities of Bellingham and Lynden, the
Public Utilities District #1 (PUD #1) of Whatcom County, and a number of farms are direct
diverters of the Nooksack River.
Lake Whatcom is a major surface water source that provides the nearly 70,000 residents of
Bellingham and portions of its associated Urban Growth Area (UGA) with domestic water.
Additional water resources for Bellingham are diverted when necessary from the Middle Fork of
the Nooksack River to Lake Whatcom; however, environmental restrictions may reduce the
impact of this practice.
2. Water Rights and Supply
The current water right, or the allocation of water using a system of permits, for those areas
noted in Whatcom County, includes rights associated with a maximum withdrawal as noted in
table 14.
section IV Page IV-18
Table 14 - Water Rights and Supply
Water
Water Source
Maximum Water Withdraw
Meteretl
Storage Facilities
System
(Million gallons per day=
System?
m d
Bellingham
Lake Whatcom and middle
64 mgd - Lake Whatcom
Single-
75 million gallons
fork of Nooksack River
family
annually from the Lake,
80 mgd - Nooksack River
residences
and 25 million gallons of
are not
reservoir storage.
metered
Blaine
Groundwater: 8 wells in the
3.2 mgd right according to the
Metered
5 tanks totaling 4.65
Dakota Creek Watershed ; 2
Comprehensive Plan
million gallons
additional wells on Boole"
Street wait DOE approval
Everson
Grountlwater. Strandell well
0.54 mgd annually
Meteretl
2 reservoirs totaling
field
360,000 gallons
Ferndale
Nooksack River through
4.5 mgd from PUD #1,
Metered
2 facilities totaling 2.7
Whatcom PUD #1, and
2.6 mgd from 2 wells:
million gallons
2 additional wells
5.6 mill total
Lyndon
Nooksack River
1.8 mgd annually
Metered
3 facilities totaling 3.3
7.6 mgd instantaneous
million gallons.
Nooksack
City of Sumas
0.45 mgd annually;
Metered
3 facilities totaling
600,000 gallons.
0.72 mgd maximum
instantaneous flow
Sumas
Groundwater: Sumas well
1.71 mgd annually including
Metered
2 reservoirs totaling 1
field
water sold to SRWA and
million gallons
Nooksack
Point
Pt. Roberts Water District #4
0.84 mgd maximum allotment
Metered
A 2.5 million gallon
Rebels
via Greater Vancouver Water
reservoir
District
PUD #1
Nooksack River to supply
53.64 mgd (46.246 untler
5 000 gallons at
Cherry Point, and two
contract)- Nooksack River
Grandview and 150
groundwater sources
0.144 mgtl - Grandview
gallons at Praxair
Grandview and Pre
0.005 mgd - PraxaiPal
For the city of Bellingham, the amounts reported in the table are affected by several factors
including the compliance with Department of Ecology in- stream flows on the Middle Fork of the
Nooksack River, the permitted storage capacity from Lake Whatcom, the maintenance of a
constant flow in Whatcom Creek, and yearly and seasonal variances in precipitation. The City of
Bellingham has filed a claim for the water rights to Lake Whatcom. This claim is substantiated
by the city's use of Lake Whatcom as a water source prior to the enactment of the Surface
Water Code in 1917. There is a separate contract to provide water to the Georgia Pacific (GP)
plant in Bellingham; however, the water demand for the GP facility has declined significantly
since April 2001 due to the closure of the pulp mill and chemical plant. According to the City of
Bellingham's Supplement to the Bellingham Water System Plan from April 2001, the city's
average daily consumption in 2000 equaled 9.13 million gallons per day (mgd) and the peak day
water consumption equaled 15.84 mgd. A reduction in water consumption resulted from an
aggressive water conservation program. As projected in the 1993 Comprehensive Water Plan,
Bellingham's anticipated water supply will sustain the estimated water demand in 2015 of
roughly 17.0 mgd, provided that maintenance and improvement programs are administered
effectively. The city of Bellingham meters all customers except single family residences inside
the city limits, which are charged a flat rate based on an average monthly consumption by a
family of four in one home.
Section IV Page IV-1 9
There are several options under consideration in the City of Blaine that would provide for water
supplies to accommodate future demands. These include conservation efforts, the addition of
new wells, and the modification of water supply service to the Birch Bay Water District. Blaine
and the BBW D approved a new 30 -year contract to serve Birch Bay in March 2002. In addition,
Blaine has contractual interests in 3 mgd of water from W hatcom PUD #1 that it is not presently
using, but may in the future with the new arrangement with Birch Bay and if it is allowed by the
state Department of Ecology.
The water right figures for Everson are according to the City of Everson's Comprehensive Plan.
Additional treatment for manganese concentrations could provide increased water supplies to
meet population demands.
Of the two sources supplying water to the City of Ferndale, the PUD provides up to 4.5 mgd
annually according to its contractual agreement with the city. The secondary source for the
city's water supply consists of two wells that have the capacity of approximately 1.3 mgd each,
although, one of these wells has high manganese concentrations. This maximum capacity level
(5.6 mgd combined) is calculated to be approximately five times the current rate of demand
according to the city's comprehensive plan. Therefore the city can serve a much larger
customer base without having to add capacity.
The City of Lynden's source for water is the Nooksack River which replaced several wells used
until the 1920's. The city discovered in 1999 that it was withdrawing amounts of water from the
Nooksack River that exceeded current water rights, causing a moratorium on residential
development. Solutions to this situation are under investigation. In response to this water rights
issue, Lynden has pursued several water conservation measures and has approached the City
of Bellingham about purchasing water. Currently, an agreement has been reached between
Lynden and Bellingham that will study the feasibility of such transfer. This preliminary study into
the sale of water by the City of Bellingham to Lynden will be partially funded by both cities.
According to information from the City of Sumas Comprehensive Plan, Sumas has water right
certificates for the Sumas well field. One condition that might pose a problem to the water
supply there is the level of nitrates found in the current sources. Options that are under
consideration for the water supply include the treatment of high nitrate well water, the purchase
of water from Canada, and the acquisition or transfer of water rights. In addition, Nooksack is
requesting an increase in its water supply from Sumas, which may occur in 2002. However, the
water rights granted to Sumas are large enough to accommodate growth the next 20 -plus years.
3. Treatment
The intake capacity to the City of Bellingham's water treatment facility is 100 mgd and the
hydraulic capacity of the city- operated facility is 48 mgd. Water from the city's intake near
Geneva is transported through a wooden pipeline built in 1940 to the screen house at W hatcom
Falls Park. At the screen house, also built in 1940, debris and fish are removed before
undergoing further filtration at the City of Bellingham's six mixed media filtration system, which
was brought on line at W hatcom Falls Park in 1968. At this facility, aluminum sulfate and
polymers are added to clump microscopic impurities. The water is then gravity fed through
filtering media (anthracite coal, silica sand, garnet, coarse garnet, and gravel). The filtered water
resides in a reservoir where chlorine disinfection occurs. Soda ash is added to adjust pH levels
and the water is then tested and activated carbon is added, when necessary, to control the
Section IV Page IV -20
water's taste and odor. Mercury has not been detected in finished or treated water according to
the city.
Currently, there is no need for the City of Blaine to process or treat the water obtained from the
Dakota Creek Watershed. However, additional septic tanks, land use practices, and the use of
the aquifer by private individuals in the region might deteriorate water quality to the point where
the construction and operation of a treatment facility will become necessary.
Water is treated in Everson by chlorination to disinfect the water and aeration to reduce its
acidity. Current facilities in Everson can handle an additional population equivalent of 1,512.
Ferndale's water treatment facility, which was constructed 1975, has the capacity of 4.125 mgd.
The current water treatment plant in Ferndale has the potential to double its capacity.
The mixed media water treatment system in Lynden was built in 1963. It contains a backwash
system and a clear well sedimentation /treatment system. The facility was modified in 1979 to
remove suspended solids.
Water in the City of Sumas is generally untreated. When necessary, treatment in Sumas
consists of the addition of chlorine to disinfect drinking water. This takes place at the well 4R
pump house.
Currently, there is no need for the City of Nooksack to process or treat the water obtained from
the City of Sumas. However, a moderate level of nitrates found to be 6.5 milligrams per liter
(mg/1) has been identified in water purchased from Sumas. If this level reaches the maximum
contaminant level of 10 mg /I water treatment will become necessary.
The source of Point Roberts' water supply includes three protected lake sources in B.C. The
water is transported to Point Roberts from Pebble Hill Reservoir in Tsawwassen, B.C. and then
Point Roberts Water District #4 distributes untreated water to individual accounts.
4. Storage Projects
The City of Bellingham is planning the construction of a new water storage reservoir at a
location near the James Street Reservoir, tentatively scheduled for 2003.
There are plans by the City of Blaine to construct a new 1.5 million gallon storage tank with a
tentative completion date of 2007.
Surplus storage capacity in Everson can accommodate population growth.
The city of Ferndale has property allocated for an additional reservoir.
Expanded future storage capacity is planned for property that has been purchased by the City of
Lynden on Judson Street. This will be the site of a new 7 MG water tank. The $3 million project
should start in late 2002. The increased storage capacity will not only allow for longer settling
times but also permit the maintenance of the storage tank located on the Northwest Washington
Fairgrounds.
section IV Page IV-21
5. Distribution
The current water supply system of Bellingham covers about 30 square miles consisting of 9
pressure zones, 11 pump stations, and approximately 360 miles of pipeline. In addition to
providing water to over 24,000 accounts in the city limits (January 2002), the City of Bellingham
is a water supplier for Yew Street, has assumed the operations of W hatcom County Water
Districts #16 and #9 and the Van Wyck Water Association, and sells water directly to the
Whatcom County Water Districts #2, #7, and #10. Water District #2 is located between Curtis
Road and Silver Creek, currently services 504 connections, and is approved for 508
connections. Water District #7 services the area around Britton and Toad Lake Roads, currently
services 310 connections, is approved for 374 connections, and has a maximum water demand
of 60,000 gallons per day. Water District #10 services the area between Sudden Valley and the
City of Bellingham.
Customers in Blaine are provided water from the city's distribution system. In addition to
servicing residents in Blaine and its Urban Growth Area, the city supplies water to the Birch Bay
Water and Sewer District and the Bell Bay Jackson Water Association. Birch Bay, according to
information obtained from the City of Blaine Comprehensive Plan amended in 1999, services
2,604 billing customers with a population equivalent of 5,142 residents. At this customer base,
Birch Bay averaged .55 mgd with a peak usage of 1.3 mgd. The smaller Bell Bay Jackson
Water Association averages .025 mgd per day with a peak usage of .05 mgd.
At this time, the City of Ferndale has ample capacity to meet current water demands. However,
expansion to Ferndale's water distribution system would be expedited if a proposal to treat
water for use in Birch Bay becomes a reality.
Much of the City of Everson's distribution system is relatively new due to rapid growth in the
past 15 years. In recent years, the city has been actively replacing pipe to alleviate concerns
regarding age and diameter issues.
According to information contained in the City of Lynden's Comprehensive Plan, in the year
1993, the city serviced 2,150 customers that included 347 customers in five outlying water
districts. In addition to servicing its own residents, the city supplies water to Kok Road, North
Lynden, Twin Ditch, Berthusen, and Meadowdale Water Associations. The total distance of
pipe associated with water distribution as of 2001 in the City of Lynden is 40.65 miles.
According to information contained in the City of Sumas Water System Comprehensive Plan,
the water distribution system inside the city limits consists of 91,000 linear feet of pipe. In
addition to servicing residents within city limits, the city is a water purveyor to the Sumas Rural
Water Association (SRWA), the City of Nooksack, and the Nooksack Rural Water Association
(NRWA).
Point Roberts Water District #4 operates a system that includes about 38 miles of pipe. A
majority of this pipe is constructed of asbestos cement and was installed between 1960 and
1971. There are about 1,825 connections, growing by 20 to 25 each year.
6. Wastewater Systems
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 sewage to
the J.A.M.E.S treatment facility in Abbotsford, British Columbia.
Section IV Page IV -22
Sanitary wastewater treatment in the City of Bellingham started with the construction of a facility
at the mouth of W hatcom Creek in 1948. This facility was replaced twenty-six years later by the
Post Point Treatment facility on the south side of Fairhaven. Bellingham has operated the Post
Point Pollution Control Plant since 1974. Bellingham's primary treatment facility and secondary
high oxygen treatment facility built in 1993 can process up to 16 mgd of wastewater and, as of
1995, discharges approximately 11 mgd. The disinfected water is discharged into Bellingham
Bay just west of Fairhaven. According to information from the 1995 Bellingham Comprehensive
Plan, "The City of Bellingham anticipates that its expanded and upgraded sewage treatment
facility will have a useful life of at least 20 years from its completion in 1993 1
.
There are two sewage treatment facilities that service Blaine and the adjacent unincorporated
area (Birch Bay). The City of Blaine wastewater treatment plant, built in 1972, is located on
Semiahmoo Spit. It is rated for an average maximum month flow of 0.8 mgd and a peak hour
flow of 2.4 mgd. As stated in the City of Blaine Comprehensive Plan amended in 1999, "This
plant is now operating at over 85% of its rated capacity ". In 1999, Blaine began the construction
of a new treatment facility, however, it was discovered that this site contained the ancestral
remains of the Lummi Nation. Construction was halted in August and the location was added to
the National Register of Historic Places.
The Birch Bay Water and Sewer District wastewater treatment plant located near Point
Whitehorn south of Birch Bay State Park was constructed in 1976 and serves about 3,306
residents. It is currently processing 600,000 gpd of sewage and has the capacity to process 1
mgd. Effluent is discharged in the Straight of Georgia. The BBWSD recently began providing
wastewater service to the SP refinery.
A study was completed in April 2001 for both Blaine and the District, evaluating the feasibility for
a Regional Wastewater Management Program to serve the area. The concept of the study is to
modify Blaine's system and redirect its wastewater to the District's plant, which will require
significant modification. Additional studies and negotiations are underway for this complex
project that will require approximately $36 million to complete.
Everson's treatment plant was built in 1972 and upgraded in 1988 to accommodate sewage
from the City of Nooksack. The combined capacity to serve Everson and Nooksack has been
estimated by Wilson Engineering to exceed the capacity of the current treatment facility by the
year 2006. Possible short-term solutions might include the purchase of Nooksack's excess
capacity by the City of Everson.
The City of Ferndale's wastewater treatment facilities include wastewater treatment using four
lagoons that are partially aerated, a polishing pond, and a chlorine gas disinfection facility.
Treated wastewater from Ferndale's wastewater treatment facility is discharged into the
Nooksack River. Capacity of the wastewater treatment system is 3.32 mgd as of 1997.
Additional wastewater treatment projects include disinfection facilities, the construction of a new
river outflow, and the expansion of facility capacity to 6.37 mgd by 2003.
The City of Lynden's wastewater treatment plant was constructed in 1978. This facility
discharges into the Nooksack River. Lynden's Comprehensive Wastewater Plan from March of
1994 prepared by Barrett Consulting Group stated that, 'The existing wastewater treatment
plant is near capacity." The forecast for wastewater flow in the year 2010 is over 1.3 million
gallons for domestic customers and 289,000 gallons for industrial customers. The city has
section IV Page IV -23
started an upgrade project of the treatment facility with a $775,000 grant and $7.25 million loan
from the state Department of Ecology.
Almost all of the unincorporated area of the county primarily uses septic systems or "package"
sewage treatment systems to treat sewage. There are approximately 27,000 septic systems in
Whatcom County, serving about 90% of the unincorporated population. Without proper
maintenance these septic systems can fail, leading to high nitrate levels in well water and
coliform bacteria in surface water.
Point Roberts Water District #4 has completed a feasibility study, funded by the U.S. Forest
Service and the District, for a community wastewater system to replace individual septic tanks.
Many residents feel that future development is impeded for the community without a centralized
system. Questions of costs, who can be served and management has delayed approval for a
particular option for the community. The Whatcom County Council approved a sub -area plan
for the community in December 2001, which provides goals and projects guiding the
development of infrastructure for the community.
Solid Waste
The treatment of biosolids (human and animal waste) in Whatcom County is approached
differently in individual municipalities. Biosolids from Bellingham's Post Point Pollution Control
Plant are incinerated on location. Solid waste from sewer disposal treatment plants in Blaine,
Birch Bay, Lynden, and Everson (Nooksack's sewage is processed by Everson) is periodically
removed by trucks, collectively stored, and then spread on two fields north of Lynden. The City
of Ferndale uses four lagoons as settling ponds for solid waste. These ponds are dredged
periodically and the biosolids are removed and transported to Eastern Washington for disposal.
All sewage from Sumas is sent to the J.A.M.E.S. treatment facility in Abbotsford, British
Columbia.
8. Storm Water
Storm water management practices vary in the incorporated and unincorporated portions of
Whatcom County. The county adopted countywide standards for development in 1984.
Whatcom County policies limit the alteration of existing natural drainage patterns and, where
applicable, natural storm water designs are encouraged. While the main functions of most storm
water systems in Whatcom County are to divert drainage away from homes and businesses and
minimize the occurrence of flooding, efforts are underway to enhance the quality of storm water
discharge. Individual municipalities have adopted standards in addition to those implemented by
the county.
The City of Bellingham approaches storm water and flood planning on a regional watershed
basis as detailed in the Watershed Master Plan from 1992. For large construction projects
resulting in the creation of 5,000 square feet of impervious surface, the city requires developers
to provide permanent water quality facilities. All projects are required to have erosion and
sediment controls during the construction phase. Machine excavation in Bellingham requires the
acquisition of a Water Quality Permit. Additional regulations apply to land disturbance activities
that take place within the Lake Whatcom watershed. The city has the authority to review all
major development proposals in its Urban Growth Area and can require compliance with their
storm water regulations.
section IV Page IV44
The Storm Water Management Plan adopted by Blaine in 1995 outlines new drainage
standards, treatment, and other possible programs that will reduce the amount of pollutants in
storm water. Examples of storm water system improvement practices that are being adopted by
the City of Blaine would include the addition of oil /water separators, biotreatment, and inflow
and infiltration improvements and reduction.
There is not presently an integrated storm water system in Everson. Some areas of the city
have natural drainage and other sections have drainage lines.
The City of Ferndale has until December of 2002 to develop an improvement plan on its storm
water drain system. This process is underway.
The City of Lynden's storm water system consists of 18.24 miles of pipe as of the year 2001.
The City of Nooksack has upgraded its storm water system at the corner of Columbia Street and
SR -9. This includes the addition of three new catch basins and 1,740 linear feet (If) of storm
water pipe. Runoff in other parts of the city drain into the gravel or grass found on the side of the
road. Future development will necessitate the expansion of Nooksack's storm water system
and the development of a comprehensive storm water management plan for which the city is
seeking funding.
The storm water system in Sumas includes of 38,000 If of pipe, 3,000 If of open ditches, and two
pump stations. Drainage is divided by Johnson Creek into two drainage basins. The backbone
of the northern basin is a sixty- year -old W PA concrete drainage line.
The Point Roberts area uses two methods for surface water drainage. Upland areas are
drained by natural gullies. In lowland regions, ditch networks are used.
9. Commercial and Industrial Properties
The Port of Bellinaham
The Port of Bellingham owns 1,507 acres of commercial and industrial area. This includes 675
acres for the airport, 186 underwater tideland acres for two marinas and 25 upland acres for
deep -water marine terminals. In addition there are 364 acres of privately leased
commercial/industrial area and 257 acres of undeveloped property adjacent to the airport, of
which 75 acres is held for wetland conservation.
The 364 acres developed for private leases includes the following areas: 52 acres at the
International Cargo Terminal in the city limits of Sumas, 193 acres at the Airport Industrial Park,
76 upland acres at Squalicum and Blaine Harbors (Marine Commercial support services), 14
acres at Bellwether on the Bay Peninsula (planned mixed /commercial use), 16 acres at the
Fairhaven Marine Industrial Park in Bellingham, and 13 acres at Hilton Terminal on the
waterfront in Bellingham.
The Port also owns and manages about 1.6 million square feet in facilities and structures. This
includes 269,225 square feet in operations and transportation terminals, and 547,671 square
feet in retail, office and warehouse /light industrial facilities. Over 400,000 square feet is
warehouse /light industrial building space.
section IV Page IV -25
Private Facilities
Some of the privately owned and operated industrial facilities in Whatcom County include the
following:
• Grandview Industrial Park and COPAC Warehouse and Industrial Center, 106 acres and
180,000 square feet of industrial space, off 1 -5 near Ferndale
• Silver Creek Business Park, off 1 -5 near Ferndale
• Cherry Point Industrial Park, 400 acres of heavy industry zoned.
• Sumas Industrial Park in the city of Sumas, 48 acres.
• Pacific Industrial Park, 22 acres in Ferndale,
• Strider Industrial Park, 27 acres on East Bakerview in Bellingham
• Haskell Business Center in Bellingham,
• Cambridge Industrial Park in the city of Blaine on 2.65 acres centered between 1 -5 and
the truck route. Also about 23 acres east of the Blaine airport zoned industrial.
• Cordata Business Park, 600 acre mixed -use business park (retail, office, residential,
institutional, industrial) in Bellingham off the Guide Meridian.
• The west Lynden industrial area
B. Public Services and Facilities
1. Fire Protection
Eighteen Whatcom County Fire Districts, independent municipalities, and the Port of Bellingham
provide countywide fire protection.
The Bellingham Fire Department provides fire and emergency services within the city limits with
the exception of facilities operated by the Port of Bellingham. Bellingham's Fire Department
consists of five fire stations, a training and emergency communications center, one county
ambulance station, and a Building Services Division located in the City Hall building. The Port
of Bellingham operates a fire brigade for the Bellingham Shipping Terminal, Squalicum Harbor,
and the Bellingham International Airport.
The Fire Division of the Department of Public Safety provides the City of Blaine fire protection.
Everson and Nooksack are provided fire protection by Whatcom County Fire District #1. The
City of Ferndale has a contract with Whatcom County Fire District #7 to provide fire protection.
There are two stations, one at the intersection of Third and Washington Streets and the new
station on Church Street in Ferndale. The Lynden Fire Department is also known as Whatcom
County Fire District #20. Sumas receives fire protection from Whatcom County Fire District #14.
A countywide mutual aid contract is in place allowing Whatcom County Fire Districts and the
Bellingham Fire Department to respond collectively to emergencies outside of individual service
boundaries. Agreements of this nature reduce response times and make the most efficient use
of emergency response resources.
2. Law Enforcement
Independent departments are established to meet the law enforcement needs of all
incorporated cities within Whatcom County, except for the City of Nooksack. Police departments
Section IV Page IV -26
operate in the cities of Bellingham, Blaine, Everson, Ferndale, Lynden, and Sumas. Nooksack
is served by the Everson Police Department through a contract.
The Whatcom County Sheriff's Department serves the unincorporated portions of Whatcom
County. Whatcom Security Agency, Inc. is contracted for security at the Bellingham International
Airport. Both the Bellingham Police Department and the Whatcom County Sheriff's Department
also respond to calls at the airport. Current Federal Aviation Administration (FAA) regulations
require mandated response times for local authorities; however, future regulations might also
entail the presence of armed police during operation hours.
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 products and
recyclable material. SSC serves over 36,000 residential and commercial customers. The City of
Blaine uses Blaine -Bay Refuse, Inc. The cities of Everson, Lynden, Nooksack, and Sumas use
Nooksack Valley Disposal located on Birch Bay Lynden Road.
Two facilities have the combined capacity to incinerate two hundred tons of disposable solid
waste per day. The material that is not incinerated is transported to regional landfills outside of
Whatcom County. A third privately owned facility processes a portion of unseparated solid
waste recycling and then transports the remainder to a landfill located outside of Whatcom
County. More than 35% of the solid waste in Whatcom County is recycled. In 1989, Bellingham
was the first city in Washington to establish a curbside recycling program.
Local landfills are currently limited to construction debris. A privately owned landfill on Hemmi
Road is used for this purpose. There are several solid waste drop box locations within Whatcom
County. The county owned Cedarville landfill, while not used for the disposal of solid waste
since 1990, is used as a drop box location. There is another county owned drop box location
owned by the county in Point Roberts and two privately owned locations in Birch Bay and
Lynden.
4. Medical Facilities
St. Joseph Hospital provides primary and emergency medical care for residences of Whatcom
County. There are two locations that include the Main Campus at 2901 Squalicum Parkway and
the South Campus at 809 E Chestnut in Bellingham. According to information provided in the
fall 2001 edition of the Health Quarterly, St. Joseph Hospital currently has 253 beds, 300
physicians, 515 nurses, a total of 1,700 employees, and 250 volunteers.
5. Senior/ Community Centers
There are numerous senior centers located throughout Whatcom County established to provide
senior and community activities. These included the Bellingham Senior Center, Blaine
Community/Senior Center, Everson Senior Activity Center, Ferndale Senior Activity Center,
Lynden Community /Senior Center, Point Roberts Senior /Community Center, Sumas Senior
Activity Center, the Welcome Senior Center in Deming, and a senior center for the members of
the Lummi Nation.
section IV Page Iv -27
6. 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, contains some of America's most beautiful scenery. Three
Washington State Parks capture the uniqueness of Whatcom County. Trails through coniferous
forests lead up Chuckanut Mountain in Larrabee State Park. Over 8,000 feet of saltwater
shoreline along Birch Bay and nearly 15,000 feet of freshwater shoreline along Terrell Creek are
features of Birch Bay State Park. International agreements signed between the US and Canada
after the war of 1812 is commemorated at Peace Arch State Park.'
The Whatcom County Parks and Recreation Department owns and manages over 1600 acres
of developed parkland including Silver Lake, Hovander Homestead, Samish, Lighthouse Marine
and Semiahmoo Parks. Included in the system are the Roeder Home (listed on the National
Registry of Historic Places), the Plantation Rifle Range, the Tennant Lake Interpretive Center
and Fragrance Garden, and over 40 miles of trails. Whatcom County Parks and Recreation
offers services and programs at eight Senior Community Centers in cooperation with the
Council on Aging. Numerous other programs are offered through the Outdoor Recreational
Program. The Parks and Recreation Department also supports several programs and special
projects, developed and sponsored by local communities."
Each city and town located within Whatcom County has a Parks and Recreation Department.
Each jurisdiction recognizes the need to preserve open space and shoreline access and to
expand recreational services for the ever - growing population. The City of Bellingham has a
highly developed park and recreation system and provides nearly 1,500 acres developed
parkland and over 70 miles of trails. Bellingham offers an aquatic center, numerous sports,
enrichment and environmental activities and has established a Greenway Volunteer Program.
Similarly, all smaller cities and towns provide park services and sites to their citizens and are
continually working to develop these and increase the number of activities for their residents
and visitors."'
Bellingham leads the nation in the amount of green space available, with 15% of the city's total
land area utilized as a park or natural reserve, and the American Hiking Society and the
National Park Service have designated Bellingham as a "Trail Town USA.' " This is partly due to
the innovative Greenways levy specifically designed to preserve green spaces. This levy was
first approved by voters in 1990 and was for funds to purchase parkland and connect trails (thus
"greenways "). It was to (and did) sunset when they collected $7 million. In anticipation of this
one was winding down in 1997, the voters approved another levy in 1996 for the second phase
(called "Beyond Greenways") which is now working to collect $20 million - not only for
purchases but now includes projects such as the Taylor Dock and upgrades to Civic Field. This
one is expected to run for about 10 years.
Whatcom Council of Governments is working with the ongoing development of several regional
trails and scenic routes. Some of these include the Coast Millennium Trail, Chain of Trails, and
the Scenic Byways of Chuckanut Drive and the Mount Baker Highway Corridor. Also, both
Whatcom County and the City of Bellingham have Bicycle /Pedestrian Committees focused on
the continued development of services and connections for non- motorized access.
In addition to the parks and recreation efforts throughout the county, Whatcom County also has
a strong and growing conservancy organization — Whatcom Land Trust. Other recreational
points of interest in Whatcom County include the Lynden KOA Campground and the Mount
Baker Ski Area.
Section IV Page IV -28
C. Transportation System
1. Road Projects
Road construction and maintenance in Whatcom County is the responsibility of several
jurisdictions including State, County, and local municipalities.
1 -5 provides a corridor for a majority of the north /south traffic through Whatcom County. This
freeway contributes to the flow of traffic in Bellingham, Ferndale and Blaine. Proposed
construction projects along this corridor include the seismic evaluation of the bridges in
Bellingham along with several rehabilitation and painting projects that will be conducted by the
Washington Department of Transportation. Numerous projects by the cities of Bellingham,
Blaine, and Ferndale will improve exits and access to 1 -5. In the City of Blaine there are
proposals to expand the Peace Arch crossing by the U.S. General Services Administration. This
would eliminate the northernmost exit along 1 -5. All access to downtown Blaine would be limited
to the southern end of town. Alternatives to this situation have been investigated by the City of
Blaine to maintain access to the commercial properties located adjacent to the freeway and to
the downtown business district. The City of Ferndale anticipates construction of a full
interchange at 1 -5 and Smith Road within the next twenty years.
In addition to 1 -5 there are three northern and two southern alternatives that facilitate the
movement of traffic in and out of Whatcom County, excluding the Point Roberts border crossing.
Northern alternatives to 1 -5 in Whatcom County include SR -548 (the Pacific Highway truck
crossing) in Blaine, SR -539 (the Guide Meridian), and SR -9 in Sumas. To the south, SR -9
through Acme and the scenic SR -11 (Chuckanut Drive) provide access to Skagit County.
The second border crossing location in Blaine is on SR -548, the Pacific Highway crossing. This
crossing accommodates automobiles but is specifically designed as a truck crossing. The
Washington Department of Transportation is planning a few culvert projects along this road
within the next several years. The City of Blaine has scheduled several projects on SR -548
including widening portions of the road and the addition of signals.
The Guide Meridian, or SR -539, carries traffic from Bellingham to the Lynden border crossing.
The border crossing is located approximately 3.5 miles north of the city limits of Lynden. New
and recent commercial development in Bellingham is concentrated on the Guide, contributing to
extensive congestion. The City of Bellingham will be completing signalization projects on the
Guide Meridian within the next few years. The Washington State Department of Transportation
has planed for improvement projects on SR -539 between Horton Road and Ten Mile Road. This
project has been delayed slightly while Right -of -Way plans were devised and property
purchased but the construction phase is scheduled to begin in 2003. New construction is
expected on Kok Road and SR -539 within the next twenty years.
SR -9 provides access to Canada from the City of Sumas. This state highway road continues
through Whatcom County along the South Fork of the Nooksack River and into Skagit County to
the south. Within the next few years the Washington State Department of Transportation is
planning the replacement of the Bone Creek Bridge, several culvert projects, and U.S. -
Canadian border crossing improvements. A possible realignment of SR -9 has also been
proposed south of Sumas.
The Washington Department of Transportation recently completed several reconstruction
projects on SR 11, Chuckanut Drive. This scenic road follows the shoreline from South
Section IV Page IV -29
Bellingham to Skagit County. A few projects including a culvert project are planned in the next
few years.
2. Pedestrian/Public Transportation
Several new pedestrian /bike trails are proposed for Whatcom County. Bellingham will add bike
lanes during projects on James Street, Northwest Avenue, and Sunset Drive. Blaine has made
plans for a Harbor Loop that would create a bike path around Drayton Harbor. The City of
Everson has been active in the design and implementation of the Bay -to -Baker trail that would
connect Bellingham Bay to recreational points to the east. Construction is slated to begin within
the next three years. Everson will also be the crossing point for the proposed Nooksack River
Trail. Between the Bay -to -Baker and the Nooksack River Trail, three new bicycle loops would
converge in Everson. Other bike trail projects that would benefit Whatcom County include the
Millennium Coast Trail which would create a north /south corridor for non - motorized
transportation.
The Whatcom Transportation Authority (WTA) provides public bus service to several portions of
the county. While service is centered on the urban center of Bellingham, there are branches that
extend to the cities of Lynden, Ferndale, Blaine, and the Lummi Nation. Demand response
service is provided in the City of Everson, Nooksack, and Sumas Monday through Saturday. A
fixed route has not been established for the Nooksack Valley east of Lynden. Service is not
available in eastern Whatcom County. Whatcom County voters recently approved a sales tax
increase to maintain existing WTA services which have been impacted by the "car tab initiative"
695.
Other means of public transportation within Whatcom County include the use of car - pooling and
cab services. Car - pooling is facilitated through the establishment of several WTA and privately
owned "Park and Ride" lots.
3. Airports /Runways
Bellingham International Airport is operated by the Port of Bellingham and is equipped for
charter and commercial air carrier service. Horizon Airlines is presently the only commercial
airline serving Bellingham with daily service to Sea -Tac Airport in Seattle. West Isle Aire
provides scheduled and charter service from Bellingham to the San Juan Islands. There is a
2,100 ft. asphalt runway in Blaine that is operated by the city. Future plans for the airport include
improvements to the runway and the construction of additional hangers. The City of Lynden
operates a small airport on Depot Road. This facility has a 40 ft, by 2,439 ft. runway and is
intended for small commercial and recreational aircraft. There is a private runway on Point
Roberts that is used for recreational airplanes and for emergencies.
4. Marine
Whatcom County has numerous private and public shipping ports and marina facilities along the
134 miles of designated marine shoreline.
The Bellingham Shipping Terminal, operated by the Port of Bellingham, is the largest facility of
its type in Whatcom County. This shipping terminal is surrounded by industrial zoned properties.
The channel depth leading to the shipping facility is 32 meters and the terminal is utilized in
trade routes to and from Asia, the Mediterranean, South America, and Australia. Cargos that
section IV Page IV -30
frequent the docks include wood pulp, aluminum, chemicals, fertilizers, and wood products. The
Burlington Northern Railroad offers a rail barge transfer option at this location.
The Squalicum Harbor in Bellingham Bay and the Blaine Harbor at the mouth of Drayton Harbor
are marinas operated by the Port of Bellingham. These facilities are used by both individual
pleasure crafts and by commercial boats that are part of the Alaska fishing fleet. Both support
on site fish processing. Squalicum Harbor has two moorage basins and provides a full range of
services for over 1,800 commercial and private recreational boats as well as a number of large
charter boats. Blaine Harbor has 600 boat slips for private recreational and commercial boats
and over 700 feet of visitor moorage.
The Bellingham Bay Shipyards services commercial and government ships. This terminal has a
dry dock facility with the ability to repair ships up 122 meters in length. The facility is facing
closure, but another tenant may occupy the area. Located next to the Bellingham Bay Shipyard
is the Bellingham Cruise Terminal, owned by the Port of Bellingham, which has scheduled ferry
service to Alaska, the San Juan Islands, and Victoria, Canada.
Private marine facilities include the marinas located at Semiahmoo Spit, Sandy Point, Point
Roberts, and the industrial docks located at the Arco /Phillips Oil Refinery and the Intalco
Aluminum Corporation on Cherry Point. A small boat launch near Birch Bay State Park recently
reopened. It is operated by State Parks and Recreation.
Whatcom County provides ferry service from Goose Berry Point on the Lummi Nation
Reservation to Lummi Island for residents and their automobiles. The historic Plover ferryboat
provides service between downtown Blaine and the Semiahmoo Spit. Additional ferry service
between Blaine and Point Roberts has been considered several times. The latest proposal
would utilize a 162 -foot ferry called the Hi -Yu that was built in 1967.
S. Railroad
Amtrak between Vancouver, British Columbia and the Fairhaven terminal in Bellingham
provides passenger rail service. This service also provides passenger transportation between
Bellingham to Seattle, with connections across the country.
Burlington Northern & Santa Fe Railway operates freight rail lines in Whatcom County. This
includes transportation of freight paralleling SR -9 between Sumas and Sedro Woolley and a
spur line that transports freight three times per week to and from Lynden. Railroad lines also run
through Bellingham, Ferndale, and Blaine. Additional spur lines make transportation possible by
rail into the industrial area of Cherry Point and spurs serve Bellingham Shipping Terminal.
6. U.S. — Canada Border
The United States/Canadian border in Whatcom County has five border crossings. These
include points in the cities of Blaine, Lynden, Sumas, and Point Roberts. The total number of
automobile crossings in the year 2000 for all the border stations except Point Roberts equaled
4,799,746 southbound and 4,363,098 northbound. That same year, the total number of truck
crossings equaled 691,579 southbound and 567,575 northbound.
The City of Blaine has two border crossings into Canada that operate 24 hours a day. The
Peace Arch crossing is designed for automobile traffic. The Pacific Highway crossing
accommodates automobiles but is specifically designed as a truck crossing location. In 1995,
Section IV Page IV -31
there were 21,000,000 people who traveled through the two border crossings in Blaine. At both
locations in Blaine during 2000 there were 3,332,147 southbound and 3,009,179 northbound
automobiles. In 2000, at the Pacific Highway crossing, there were 516,829 southbound and
435,166 northbound trucks crossing the border. In addition to the Blaine Police Department and
the U.S. Border Patrol, 9 National Guard soldiers are deployed to the Peace Arch crossing and
8 soldiers are allocated to the Pacific Highway crossing due to the events of the September 11 th
terrorist events. These National Guard members are intended to provide additional resources
for the U.S. Immigration and Naturalization Service (INS) and Border Patrol agents. The number
of INS inspectors at the Peace Arch and Blaine truck crossing will be permanently increased in
order to add security and reduce congestion. This equates to 20 new INS inspectors at the
Peace Arch crossing and 15 INS inspectors at the Blaine border crossing.
The city limits of Lynden are approximately 3.5 miles from the Lynden Station Canadian Border
Crossing on SR -539. There were 3,116,400 border crossings at this station in 1990. In 2000,
there were 649,060 southbound and 621,656 northbound automobile crossings at the Lynden
station. That same year, there were 51,330 southbound and 69,316 northbound truck crossings.
The number of INS inspectors at the Lynden border crossing will be permanently increased by
9.
The Sumas border crossing into Canada operates 24 hours a day. In 1990, there were
5,726,000 crossings at this facility. In 2000, there were 818,539 southbound and 732,263
northbound automobile crossings at the station. That same year, there were 123,420
southbound and 63,093 northbound truck crossings. 7 new INS inspectors will permanently
increase the number of INS inspectors at the Sumas border crossing.
Point Roberts has a border - crossing checkpoint. This border crossing has the lowest volume of
traffic of all the Whatcom County checkpoints. There will be 3 new INS inspectors permanently
assigned to the Point Roberts crossing.
Automobile travel through border crossing locations has diminished as a result of a weak
Canadian dollar. However, the number of trucks passing through the border crossings has
increased in the past ten years.
D. Energy
1. Electricity
The Bonneville Power Administration (BPA), Puget Sound Energy (PSE), the Public Utility
District #1 of Whatcom County, the City of Blaine, and the City of Sumas provide the
transmission and delivery of electricity in Whatcom County.
The BPA uses high voltage transmission lines (the Northern Intertie - West) to connect with B.C.
Hydropower lines in Canada. Electricity then can be transferred between Washington and
California using transmission lines that travel along the West Coast of the United States. The
maximum capacity of the Northern Intertie is approximately 2000 MW in the north direction and
2850 MW heading south. BPA uses several sources of electric generation including
hydroelectric dams in Washington state, Canadian resources, and wind power in Eastern
Washington.
PSE provides electricity to all cities, except for Blaine and Sumas, and most of rural Whatcom
County. In 2000, PSE served 69,767 residential, 10,576 commercial, and 456 industrial
section IV Page IV-32
accounts. Its revenue per customer was 6.46 cents /kwh in 2000. A variety of sources are used
by PSE to supply Whatcom County with electricity, including the purchase of electricity from
SPA, PSE cogeneration facilities (Encogen Northwest L.P.), other gas -fired cogeneration
facilities not owned by PSE (the Sumas Cogeneration Facility and Tenaska), and other sources
located outside of Whatcom County.
The total maximum peak load in Whatcom County was 504 MW in the year 1998. PSE projects
the peak load to increase 2.4% annually to 668 MW by 2010. The substation capacity of PSE
facilities is 510 ( VIVA) in the year 2001. The generation capacity of PSE in 2001 is 700 MW.
Currently, PSE does not plan to build or acquire company -owned cogeneration.
Blaine and Sumas purchase their electricity directly from the BPA. Electricity is transmitted to
Blaine and Sumas by PSE and then distributed to individual accounts by the city utilities
departments.
The Alcoa/Intalco Works aluminum plant purchases its electricity directly from the BPA.
However, at the request of the BPA, the large quantity of electricity utilized in aluminum
production at this facility is not currently distributed to Intalco by the BPA. Additionally, during
the period of time in which BPA is withholding the distribution of electricity to Alcoa/Intalco, the
BPA is paying the displaced workers salaries.
The Whatcom County PUD #1 provides electricity to the Phillips / Tosco refinery. The PUD #1
purchases electricity for distribution to the Cherry Point refinery directly from the BPA.
2. Natural Gas
The Northwest Pipeline system, built in 1957, first introduced natural gas service to the Pacific
Northwest. It is currently owned and operated by Williams Gas Pipeline -West. The Cascade
Natural Gas Corp. delivers natural gas to residential and industrial customers in Whatcom
County through transmission lines owned by the Northwest Pipeline Corporation. Natural gas is
transported from Canada to a site just east of Sumas. Branch lines run west from the
corporation line along the ARCO lateral and then south to the city of Bellingham.
In 2000, Cascade Natural Gas Corp. served 60,554 customers in the incorporated portions of
Whatcom County. Their residential customer forecast by 2010 predicts there will be 80,610
customers, or a 2.9% annual rate of growth. Other rural areas of the county rely on on -site
stored propane for their needs.
E. Communications
1. Telephone
Owest provides standard telephone service to the City of Bellingham. Verzon provides standard
telephone service to all other cities in Whatcom County. Subject to location, AT &T digital phone
service is available in Bellingham, Blaine, Everson, Ferndale, Lynden, and Nooksack.
There are several wireless providers in Whatcom County including Verizon, AT &T, and Sprint.
While Whatcom County from Sumas to the shoreline is included in the wireless service areas,
according to information obtained by these providers there are numerous "dead zones" that are
unable to receive transmissions from telecommunication towers or satellites. This situation is
caused by several factors including the distance from communications towers, topography, and
section IV Page IV -33
the building materials of structures from which calls are placed. Eastern Whatcom County can
experience severe wireless communications limitations due in part to the lack of
communications facilities and the increased ruggedness of the local terrain.
2. Internet
For high speed connections, Verizon and AT &T fiber optic lines run throughout Whatcom
County. Qwest fiber optic lines serve the Bellingham area. Many facilities operated by the Port
of Bellingham are provided high -speed fiber optic connections through the Port's High Tech
Communications Infrastructure. DSL Internet connections are available in Bellingham by Qwest.
Verizon provides DSL to Ferndale, Lynden, and Sumas. AT &T Broadband Internet is available
in portions of Bellingham, Blaine, Everson, Ferndale, Lynden, and Nooksack. Wireless internet
service is available by several private providers.
A proposed Whatcom Open Network backbone by PUD#1, called an InfiNET, will provide
increased wireless and fiber optic service across the county. The goal is to provide 100 megabit
bandwidth anywhere in the county on a wholesale basis. In the first phase, the PUD purchased
a six -mile loop of Avista Communication's line in Bellingham. Avista is no longer in service.
The PUD would receive four fiber optic strands for public access from the Bonneville Power
Association (BPA). The other stages include connecting Bellingham to the Custer substation,
the Custer substation to Intalco and then loop back to the Bellingham Substation. Other stages
would follow until the Snohomish substation is linked through to Canada. One possible hurdle
to the stage that would connect Bellingham with Vancouver, B.C. is the connection that BPA
would make to the BC Hydro substation in Canada. The newly elected Provincial government in
British Columbia might delay this portion of the BPA project.
3. Media
There are seven newspapers that serve Whatcom County. Daily: The Bellingham Herald.
Weekly: The Record - Journal specifically targeted for Ferndale, Blaine, Custer and Birch Bay
areas. The Lynden Tribune is marketed for Lynden and the Nooksack Valley and Eastern
Whatcom County's printed publication is the Mt. Baker News. Monthly: Point Robert's All Point
Bulletin, Blaine -Birch Bay's The Northern Light and other business journals such as the
Business Pulse and The Bellingham Business Journal.
Whatcom County is home to two television stations. KVOS channel 12, on -air since 1953,
transmits its programs for a viewing audience in Northwest Washington and lower British
Columbia. KBCB channel 24 and cable channel 14 transmits its multicultural broadcast to a
viewing audience in Bellingham, Seattle and Tacoma.
Finally, five FM and six AM radio stations broadcast from Whatcom County offering a range of
music and information broadcasts.
Information for infrastructure section compiled by Reuben Weinshilboum of GeoSpatial Resources, NGJ
Associates provided parks and recreation research.
Section IV Page IV -34
F. Grant and Finance Resources for Local Governments & Business
The other aspect of the economic development "hardware" is the financial support and
resources available for public, nonprofit and private project sponsors. What follows is not an
exhaustive list, but an overview of sources of assistance.
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 non -for-
profit organizations engaged in economic development:
Washington State
• Office of Trade and Economic Development
• Office of Community Development
• Department of Agriculture
• Department of Transportation
• Dept of Ecology
• State Public Works Board
• Department of Employment Security (WorkSource)
• Rural Development Council
Federal
• Department of Commerce, Economic Development Administration
• Department of Agriculture -Rural Development
• USDA, Forest Service
• Housing and Urban Development
• National Oceanographic and Atmospheric Administration (Sustainable Development and
Intergovernmental. Affairs)
• Small Business Administration
• Department of Labor
• Environmental Protection Agency
• Department of Transportation
• Northwest Trade Adjustment Assistance Center (nonprofit)
• National Center for American Indian Enterprise Development (nonprofit)
In Washington State, the Office of Trade and Economic Development provides a clearinghouse
for project development assistance and public funding for projects identified at the local level.
That system is the Washington Community Economic Revitalization Team (WA- CERT).
Projects identified through the CEDS process will be integrated into the WA -CERT prioritization
process.
2. Local Public Finance
Tools are available to local governments to finance and provide matches for state /federal
community and economic development projects.
Section IV Page lV -35
A unique funding tool provided to Whatcom County by the state is the Rural Sales Tax retention
program. As a rural county, 0.8% of the state sales tax receipts in the county are returned for
use in local economic development projects. The county generates about $1.8 million per year
toward this program.
Other local programs include: General Obligation and Revenue Bonds, Local Improvement
Districts, Public Facility Districts and Tax Incremental Financing. In addition, some cities use
special fees (impact fees, utility, business taxes etc.) for projects and capital improvements.
Washington tax code governs how communities use many of these sources.
New authority provided by Legislature in 2002 includes Industrial Land Banks, Community
Renewal Areas (urban only) and use of local sales tax for a variety of local improvements.
3. Incentives for Business Development
In Washington State there are six different tax incentive programs that businesses can use,
although these may be changed by the legislature:
1. A prominent tax incentive is the "Manufacturer's Sales /Use Tax Exemption." This
applies to machinery and equipment.
2. The Distressed Area Sales/Use Tax Deferral Program is geared to counties that qualify
as rural. Manufacturers in Whatcom County qualify for this program and the salestuse
taxes on new construction and equipment/machinery are waived when they meet the
qualifications. Businesses need to apply for this exemption prior to starting any
construction or making any purchases.
3. The Distressed Area Business and Occupation Tax Credit for New Employees is another
incentive program geared toward rural areas. Manufacturers in Whatcom County
qualify for this program and businesses that qualify can take a credit against their B &O
tax for each new employment position they fill. They must expand their workforce by at
least 15% over their existing workforce, and they can continue to get this credit by
increasing their workforce by 15% each year and reapplying.
4. The High Technology Business Occupation and Tax credit is similar to #3 and is
available to any technology business in Washington State that performs research and
development and spends at least .92 % of their taxable spending on R &D.
5. The High Technology Sales /Use Tax Deferral is similar to #2, and is also geared toward
any business in Washington that performs research and development or manufacturers
technology products.
6. The Warehouse Tax Incentive is a sales tax exemption available for the construction and
equipping of large warehouses and grain elevators.
Workforce incentives include wage reimbursements to companies that hire people from targeted
populations as well as job training assistance for new or existing employees. There is also free
assistance for searching, screening, and hiring employees. These services can be accessed
through WorkSource Whatcom.
4. Industrial Revenue Bonds (IRBs)
Tax exempt financing for business expansion is available with IRBs issued through a local
Industrial Development Corporation (IDC). The Port of Bellingham and the city of Lynden are
established IDCs in the county. In amounts ranging from $1 million to $10 million, this financing
Section IV Page IV -36
mechanism offers manufacturing and processing companies the advantage of below market
interest rates for purchasing land, constructing buildings, upgrading existing facilities and
purchasing equipment. The borrower provides security to the bond purchasers (typically banks
and securities dealers). The IDC acts solely as the sponsoring agency.
The Port has issued approximately $63 million in bonds since its program's inception in 1980.
The Port Commissioners, plus the Port's auditor, serve as an Industrial Development
Corporation.
5. Foreign Trade Zones
FTZs provide U.S import duty savings and avoidance of quotas, tariffs and excise taxes for firms
engaged in distribution and manufacture of products and commodities that are at least partially
imported from other countries. In other words, for U.S. Customs purposes, the zones are
treated as though they are located outside the U.S.
The Port of Bellingham is a grantee of three FTZs in Whatcom County, which offer a gateway to
international business and provide companies the resources of Seattle, Portland or Los Angeles
without the congestion or cost.
• FTZ #129: include sites at the Bellingham International Airport (300 acres), Cherry
point industrial park (449 acres), Cordata Business Park (59 acres)
• #130: Blaine Municipal Airport (29 acres)
• #131: Burnes International Cargo Terminal, which consists of 75 acres for truck
railroad cargo.
A fourth zone, FTZ #128, is granted to the Lummi Indian Business Council. It is the only FTZ
located on an Indian Reservation.
For those companies that wish to reap the benefits of a zone without activating, operating or
administering their own FTZ site, the Port offers warehousing, manipulation, shipping,
administrative and reporting services through their general purpose operator, International
Market Access, Inc. IMA oversees approximately 25,000 SF in the International Trade Building
located within FTZ #129. In addition to zone services, the firm offers U.S. /Canadian business
identity and fulfillment services.
6. Loan Programs for Business Development
In addition to traditional private lenders, there are over 30 individual programs for loan
assistance available through 12 government and nonprofit lending entities available to Whatcom
County businesses. These sources are not all well known, accessible or marketed locally.
Three of these programs are only available within the county: the Cities of Blaine and Sumas,
and the Bellingham- Whatcom Economic Development Council (EDC) revolving loan fund.
• Blaine's Rural Economic Development (RED) program — a zero interest loan program -
was created in October 1999. The city directs revenues from its utility tax ($50,000 per
year) into a fund managed by Sterling Bank. City of Blaine property owners, owners of
businesses, start-ups and nonprofits have access to the fund. Loan amounts vary for
terms up to five years and are flexible based on the needs of the business. To date
$140,000 has been lent out, mostly for downtown business fagade improvements. This
section IV Page IV-37
is a unique program, but Sterling Bank reports that any community could create a similar
program.
• The City of Sumas launched an economic development revolving fund in 2000, taking
advantage of an electricity excise tax incentive created by the legislature, similar to
Blaine's program. Sumas's fund provides grants and /or low- interest loans to public or
private developers that require off -site infrastructure improvements in order to
accommodate their project. The program lowers a developer's cost of siting in Sumas.
The EDC maintains a revolving loan fund that is not currently getting as many applicants
as desired. Approximately $350,000 is available in the fund where individual business
applicants can borrow up to $100,000 provided it does not exceed 30 % of the total loan
package. Loans require the creation of new jobs for individuals other than the owners.
Current RLF Committee policy is to make loans for "gap" financing in cooperation with
financial institutions. The loan committee is considering possible actions to encourage
more businesses to apply. Primary consideration is being given to ways of increasing
awareness about the RLF, and possible loan policy changes are being considered as
well.
Business loan programs vary in amounts available, eligibility requirements, interest rates and
other factors. Additionally, the fund managers and contacts are located in different areas of the
state. So, while a broad range of assistance is available, it may be confusing for businesses to
access. However, CITED strives to direct and coordinate assistance through its Business
Finance Unit based in Olympia.
According to the local Small Business Development Center, which provides some gate keeping
and direction for business finance needs, while there are many loan funds available, there is a
need for a revolving loan fund that serves just Whatcom County and provides more flexibility
than the revolving loan fund currently offered through the EDC. Ideas include a micro - lending
program to exclusively serve Whatcom County and more direct access to USDA Rural
Development lending programs - -- programs that can serve rural existing and upstart
businesses.
Privately sourced venture capital is also not currently available in the county. Efforts are
underway to evaluate the expansion of market -based finance and a venture capital fund for
Whatcom County businesses.
The funding programs through the Skagit County Council of Government have apparently
experienced good success. It may serve as a model for establishing improved revolving loan
funds in Whatcom County
'Web sites: www.nps.eov /noca/ and v o' k' /oa k'/ a se
" Whatcom County Capital Improvement Program, 2003 -2008 and web site: www.co.whatcom.wa.us/yarks
"' Discussion with City of Bellingham Parks and Recreation Department and web site: www.cob.ore/oarks
'" Barkley District website: www.baiklevvillage.com/himl/belli h' /f t' ht I
section IV Page IV -38
SECTION V: EXISTING PLANS
Planning is an integral function of public agencies and community organizations at all levels -
city, county, state, and federal. This planning process allows for a review of the forces impacting
an area's growth and change. This includes the formulation of goals, objectives and strategies
that provide guiding principles by which an organizing body can coordinate and administer the
implementation of identified projects.
The Greater W hatcom CEDS is in part a "plan of plans." All local general - purpose governments
have comprehensive land use plans. Many communities have completed local economic
development strategies, and other local entities have created and are implementing master
plans and other strategies. These processes have all involved considerable work from
numerous committees and as well as public involvement prior to consideration and formal
adoption by their respective governing body. In some cases these are strategy documents,
reports and/or recommendations and have not been officially adopted by their governing bodies.
One purpose of the economic blueprint is to acknowledge and embrace local efforts, pull them
together under a compatible set of goals, and identify strategies and projects preferred at the
community level. Two important sources for this overall economic development strategy are
local comprehensive plans and community-based economic development plans.
A. Local Comprehensive Plans
The Washington Growth Management Act (GMA) requires all counties to develop countywide
planning policies and comprehensive plans to direct growth into cities and urban growth areas
where adequate public services and facilities can be provided. W hatcom County worked with all
of the cities in the county to complete countywide planning policies in 1993, and they were
subsequently revised in 1997. All local planning jurisdictions adopted these policies, which
provide the framework for the development of city and county comprehensive plans. Policies
regarding economic development encourage the development and expansion of businesses,
which provide family -wage jobs, adequate land supply and infrastructure to support industrial
development, and retention of natural resource -based employment, including agriculture,
forestry and mining. These policies also emphasize the protection of quality of life and the
environment.
All local government jurisdictions in Greater W hatcom have adopted comprehensive plans. Two
unincorporated areas of the county also have updated comprehensive (sub -area) plans.
These plans are intended to guide growth over a long -term planning horizon. The GMA lists 13
planning goals, each of which must be considered in the local plan. The economic development
growth management goal is as follows:
'To encourage economic development throughout the state that is consistent with
adopted comprehensive plans; promote economic opportunity for all citizens of the state,
especially for unemployed and disadvantaged persons; and encourage growth in areas
experiencing insufficient economic growth, all within the capacities of the state's natural
resources and local public facilities (RCW 36.70A. 020(5))"
Presently, four of the eight jurisdictions included an economic development element in their
comprehensive plan. It has not been a required element. In other plans, employment, land
section V Page V -1
supply and infrastructure to support economic development were dispersed through other
elements of their plans.
Growth Management Plans and Economic Development
Jurisdiction
Approved /amended
Economic Development element?
Whatcom Co
Nov 1999
YES (1997 —tied to previous OEDP)
Bellingham
Jan 1996
NO
Blaine
Dec 1998
YES (1996)
Everson
Jun 1996
YES (ref to 1999 econ dev plan)
Ferndale
Oct 1996
NO
Lynden
Jan 1997
YES (1997)
Nooksack
Dec 2000
NO
Sumas
July 2001
NO
Sub - areas:
Birch Bay
in progress
YES
Pt Roberts
Nov 2001
Incorporates 1999 econ dev plan
As required by the GMA, local jurisdictions are preparing to update their comprehensive plans,
which must be completed every five years. Most indicate that they will focus on critical areas
and environmental review requirements. In addition, the 2002 Washington State Legislature
approved House Bill 2697 to "incorporate effective economic development planning into growth
management planning." However, this requirement is contingent on state funding for
communities to complete the economic development element.
Goal summaries, policies and projects identified in local comprehensive plans were utilized in
the development of the CEDS. The final document will be available to local jurisdictions to
integrate with their local plans if the community desires. Specifically, the CEDS document will
directly relate to an update of Whatcom County's economic development component, which
currently refers to the expired Overall Economic Development Plan of 1993.
B. Local Economic Development Plans
By local initiative, some being conducted in partnership with the Port of Bellingham, several
communities have completed processes and plans specific to local economic development
priorities. They currently include:
• East Whatcom County Economic Development Plan (Sept 1999)
• Birch Bay Economic Development Action Plan (Sept 2000)
• City of Everson Economic Development Plan (April 1999)
• City of Lynden Comprehensive Economic Development Plan (Nov 1998)
• City of Nooksack Community Action Plan (May 2000)
• Point Roberts Strategic Economic Development Plan (Nov 1999)
• City of Blaine Strategic Plan (2002)
• City of Ferndale Economic Development Plan (March 2002 final draft)
Section V Page V -2
As with the local comprehensive plans, goals, policies and specific projects have also been
compiled from these economic development plans for use in this CEDS report.
C. Compilation of Goals and Objectives
As an addendum to this CEDS report, goals and strategies contained in the local
comprehensive and economic development plans were compiled and will become a part of the
full document in an Appendix with the county. The compiled goals and strategies have been
categorized under the following headings:
• Land Use and Development
• Public Infrastructure and Services
• Workforce and Education
• Business Development
• Coordination
• Natural Resources
Below is the more complete list of the documents reviewed and compiled. While most plans
contained goals and strategies, some are informational and are included in this list as reference
only.
Whatcom
County
➢
Whatcom County Comprehensive Plan, May 20, 1997.
Point Roberts
➢
Point Roberts Strategic Economic Development Plan Final Report, November
1999, prepared by BST Associates and Makers for the Port of Bellingham and on
behalf of the Point Roberts Marketing Committee.
➢
2001 Point Roberts Sub -Area Plan, prepared by Whatcom County Planning
Department, 2001.
Blaine
➢
Draft City of Blaine Strategic Plan Presentation & 2002 Budget Presentation, in
progress.
➢
City of Blaine Comprehensive Plan, August 1996.
Birch Bay
➢
Birch Bay Economic Development Action Plan, September 7, 2000, prepared by
Kask Consulting, Inc.
➢
Draft Birch Bay Community Plan prepared by Kask Consulting, Inc., April 2002.
Ferndale
➢
City of Ferndale Economic Development Plan, March 2002, prepared by BST
Associates.
Lummi Island
➢
Lummi Island Plan, a component of the Whatcom County Comprehensive Plan,
April 1979.
Bellingham
➢
Draft City Center Master Plan, November 1999, prepared by W inter & Company,
Hoshide Williams Architects, Shapiro & Associates and Nakano Associates, LLS.
section V Page V -3
➢ Whatcom Creek Waterfront Action Program, Overall Vision statements are
included, November 18 1996.
Lynden
• City of Lynden Comprehensive Economic Development Plan, Adopted
September 21, 1998 and prepared by the City of Lynden.
• Downtown Lynden Development Plan and Economic Enhancement Strategies,
November 2, 2001 prepared by Dennis Tate and Associates.
Nooksack
➢
The Nooksack Community Action Plan, May 8, 2000, prepared by Terry Galvin,
Sehome Planning & Engineering, Inc.
Everson
➢
City of Everson Economic Development Plan, April 12, 1999, prepared by Kask
Consulting, Inc.
Sumas
➢
City of Sumas Comprehensive Plan, January 2001, prepared by the City of
Sumas, David Davidson City Administrator.
East County
➢
East Whatcom County Economic Development Plan, September 1999, prepared
for the Port of Bellingham and the Mount Baker Community Steering Committee
by BST Associates.
Demina/Acme
➢
South Fork Valley Subarea - A Component of the Whatcom County
Comprehensive Land Use Plan, April 1991, prepared by Whatcom County
Planning Department.
➢
Current project: Visioning Workshops in 5 East County communities being
conducted by U of W Grad Students (Deming, Glacier, Kendall, Maple Falls,
and
South Fork Valley). Acme and Mt Baker /Foothills sub area plans - Due June
2002.
Whatcom
Coalition for Healthy Communities
➢
Community Health Partnership findings and Community Counts project, Fall
2000 and April 2002 draft report
Whatcom Council of Governments
•
A Combined Metropolitan and Regional Transportation Plan, October 10, 2001,
prepared by Whatcom Council of Governments.
•
Mount Baker Highway Corridor Management Plan, December 22, 1997, prepared
by Whatcom County Council of Governments. This is a Scenic Byways
designated route.
•
Chuckanut Drive Plan Corridor Management Plan, August 14, 2001. Also part of
Scenic Byways route.
Water Resources Inventory Area (WRIA 1)
➢
Plan currently being drafted for the WRIA 1 Watershed Management Project
(WMP) Joint Board, including the City of Bellingham, the Lummi Nation, the
Nooksack Tribe, the Public Utilities District #1, and Whatcom County.
Whatcom
Ac Preservation Committee
➢
Ag Preservation Committee 2002 Strategic Work Plan, March 21, 2002.
Section V Page V -4
Public Works
➢
Transportation Improvement Plan— being done in July 2002.
Workforce Development
r
Northwest Workforce Development Council Annual Report, October 2001. Refer
to the NW DC's Strategic and Operation Plan for full details.
Port of Bellingham
➢
Evaluation for Industry Recruitment in Whatcom County and Cherry Point,
November 14, 2001, prepared by Deloitte & Touche Fantus Consulting or the
Port of Bellingham and Public Utilities District #1.
➢
Central Waterfront Redevelopment Plan, January 2000, prepared for the Port of
Bellingham by Makers Architecture and Urban Design.
•
Sumas Cargo Terminal Master Plan, Adopted 1986, last amended 2001.
•
Bellingham Shipping Terminal Master Plan, Adopted 1999.
•
Bellingham International Airport Master Plan, Adopted 1997, presently being
updated.
•
Blaine Harbor Comprehensive Improvement Plan, Adopted 1998.
•
Squalicum Harbor Land Use Plan, Adopted 1983, last amended for Bellwether
1997.
•
Fairhaven Plan, Adopted 1991, scheduled for re- adoption in 2002.
Section V Page V-5
SECTION VI: CREATING THE PREFERRED ECONOMIC FUTURE
This section outlines the committee and community involvement approach used to develop the
first blueprint for Greater Whatcom's preferred economic future. The U.S. Economic
Development Administration guidelines require that a visioning process include goals and
strategies meant to address "what does the future look like for Greater Whatcom ?" EDA
suggests that the report discuss the tools used by the advisory committee and broader
community to respond to the analysis of the area's development potentials and challenges. The
resulting vision, goals and strategies provide the framework for public and private decision -
making and serve as the basis for the action plan (projects and activities to help meet the
goals). The following describes the development and language of the Vision, Goals and
Strategies.
A. A Vision for Greater Whatcom
Early in the process the advisory committee discussed "vision" and generally agreed that the
Committee would adopt the Partnership for a Sustainable Economy's organizational vision with
minor modifications. The vision adopted by the Committee is the following:
Through collaboration of local community, business' and government interests,
we aspire to meet the needs of the current generation in Whatcom County, while
not compromising the ability of future generations to meet their own needs.
While this serves the purpose of overall hopes for ongoing regional sustainability, the
Committee believes that an ongoing community dialogue about'Who we are" is important. The
marketing of a vision cannot happen until Greater Whatcom agrees on its identity through a
broader process. Ongoing implementation and improvement of this economic development
blueprint will help to refine this vision. Working to create a countywide theme and identity is one
proposed action.
B. Goal Setting Process
The graphic on Page 2 shows the process used in the Comprehensive Economic Development
Strategy to identify issues and key themes that support regional goals. The process employed
three techniques:
1. Advisory Committee - - -- A Strength, Weakness, Opportunity and Threat (SWOT)
exercise highlighted the themes of improving business conditions, maintaining quality of
life, developing physical infrastructure, supporting the local workforce, protecting natural
resources and recognizing external forces that affect local lifestyle choices. Subsequent
meetings of the committee reinforced themes and issues.
' For the purposes of vision and actions, "business" includes private for - profit and not - for - profits
Sedion VI
Page VI -1
2. Leader Survey - -- 24 community and business leaders were asked in November -
December 2001:
•
What are W hatcom's issues/ challenges/ opportunities?
• What are appropriate roles for public, private, non - profit sectors?
• How will you know if the plan is successful?
Summary results showed similar themes to the advisory committee's work with
an emphasis on defining and improving "communication and coordination:'
3. Existing Plans - -- as shown in Section V of the document, a number of local economic
planning efforts have been completed in the county, many since 1999. Ten plans were
compared and contrasted to gather common themes, goals and strategies.
In addition, the advisory committee factored in the conditions of the area and economy, based
on the analysis provided in Sections II -IV of the document.
Inputs to Developing the Economic Blueprint
Advisory Committee SWOT Assessrneant
(Strength, Weakness, opportunity, Threat)
• Six categories of themes emerged:
• Business cbrdtions, attraction,
retention
• Community connections, quality of life
• Infrastructure, transportation
• WonQorce, education and training
• Natural resources
• External factors
• Strengths: Natural setting, open spaces and
recreation, desirable place to live, strong
woridorc% healthy cam unity organizations
• Weaknesses: Infrastructure needs, Iiving-
wage employment and lousing, retail leakage, -
perceived division behveen Bellingham and
balance of County
• Opportunities: Good laboratory for pilot
Projects, focus on local products, sector gnev th
for wdsting smaller comeantes, increased
coordination by public and private sectors offers
great promise
Threats: Lack of leadership, energy crisis,
water lights issues, bonier issues impact the
eocnorry
Community Leader Interviews
Identified issues, challenges and
opportunities similar to the Advisory
.Committee assessment.
f!a...'f"i M r I IA6A' I
• Improve decentralized economc
development efforts (coordination)
• Identity, early roles of private and
public sector in emnemic
developmem
Need to better convey that job
growth anywhere in the County helps
the region everywhere:.
• We have an identity issue — need
to create a vision of ixhat are ore?"
• Ecororric development includes
environments! protection and ruml
quality of fife -
Regional Vision
6 Regional Goals
Existing Local Economic
Development Plans
Generally suppooive of thanes heard
from other two processes:
• Common goals: a strong diverse
economy, education Araining
opportunitles, create effective working
relationships, orderly growth without
degrading environment seek growth
With geographic balance
• Opportunities such as
tourism/romation, connection to
value -added natural resources,
emphasize business retention/
expansion
• Challenges Include adequate
infrastructure, need forcormunity
identity, better info about econorric
development resources & providers
Economic Development Strategies
Section VI
Page VI -2
Using these primary inputs, the advisory committee approved six goals that identify where
Greater Whatcom wants to be over a long -term time horizon. The goals are designed to meet
the following criteria:
• Have countywide impact
• Can be achieved with local action
• Make a single statement about a desired outcome
• Suggest an outcome that can be observed or identified
• Should not generate more than one interpretation of meaning
• Are important enough to attract attention and support of citizens
• Should suggest one or more objective or strategy (ways to achieve goal)
• Should not contradict or conflict with other goals in the plan
Importantly, these goals are a system and should work with each other. Rather than a
ranking, these goals can be characterized as sections of a wheel supporting the vision to
move Greater Whatcom forward. As such they represent a comprehensive approach to
community and economic development for Greater Whatcom if they are all achieved.
GOAL A: Finance and maintain appropriate infrastructure for community and
economic development.
Providing a network of infrastructure for communities to serve the local economy is a
fundamental service of local government. One of Greater Whatcom's key challenges is that
providing sufficient services can be cost prohibitive, requiring an increasing level of financial
resources from state, federal, and private sources. Transportation systems must be efficient,
well planned and connected to move people and goods. The available land base for new
economic development may be limited due to the lack of services to appropriate sites. More
information is needed about what land is suitable for development and redevelopment. We must
know what infrastructure is available and what is needed for our community. Finally, we need to
leverage more resources to meet the community priorities. Planning wisely and investing
strategically now will save costs in the future.
GOAL B: Ensure sustainable development and uses of natural resources.
Greater Whatcom has some of the most unique and diverse natural assets in the state of
Washington: Mt. Baker and the North Cascade Mountains, over 100,000 acres of agricultural
lands, sixteen lakes, almost 900,000 acres of national forest, over 100 miles of marine
shoreline, and 3,000 miles of waterways. Community connection to these natural assets can
help to enhance economic vitality. Whatcom County's challenges include providing water
availability for multiple uses, retaining productive farmland, and protecting critical areas without
undue regulatory burdens. One of our key opportunities is to forge a balance between
environmental quality and economic development. Sustainable development and growth must
be done in a way that protects our natural resources and environment.
section w Page VI -3
GOAL C: Promote a diverse economy by sector and location
Greater Whatcom is in a long -term transition from the natural resource -based industries that
founded the local economy. Heavy industry that expanded the manufacturing base during the
1950s to 1970s has integrated with an increasingly service -based economy. Services are the
largest and fastest growing sector in terms of jobs. In fact, the traditionally low wages in
services are increasing at a faster rate than other areas of the economy. While manufacturing
has declined as a total share of the economy, certain industries tied to technology,
instrumentation, transportation and specialized machinery are growing rapidly. Tourism rounds
out the economic potential with the county's bountiful recreation opportunities. Greater
W hatcom's location along an international border creates a unique dynamic of Canadian
investment and trade, which is sensitive to border issues and bi- national trade policy. Much of
the county's economic expansion is concentrated within the Bellingham - Ferndale urban
corridor. Rural areas of the county have not shared in the substantial economic development
opportunities. Agriculture production is vital, but would benefit from new opportunities for
business enterprise. Commercial fishing may be best served by the restoration of marine
habitats. The harsh reality of industrial job losses in 2001 has underscored the importance of
business retention and expansion efforts and the need to improve salary levels, which have
declined in relation to state and national levels. Our economy must be diverse both in the types
of businesses that reside here and in their location within the county.
Goal D: Foster collaborative working relationships among economic development
stakeholders at the community, state, federal, international and tribal levels.
The stakeholders in Greater W hatcom's economic development represent local, state, federal,
tribal and international sectors. Our local interests include governments, businesses, nonprofits,
labor groups, and the broader community. Greater Whatcom is fortunate to have a wide range
of economic development service providers but gaps in service also exist. Opportunities need
to be captured to ensure that resources for business development, job training, and public
finance investment are accessed for the community. We believe there is room for everyone at
the table. By working cooperatively, we can use available resources more wisely and eliminate
the overlap from different groups doing the same job.
GOAL E: Provide and retain a high quality workforce.
The population of Greater Whatcom has grown by 30% in the past ten years and is planned to
grow another 30% by 2020. The primary cause of this increase is new residents moving here
from outside the area seeking a preferred quality of life. The growth in population and the
industrial profile of the county reflects a surplus labor force. Whatcom County's unemployment
rate has been persistently higher compared to the national rate due in part to the historic
relationship to a natural resource -based economy. But the number of available workers has
slowed in recent years causing a worker shortage in some key industries. One of our strengths
is that among the pool of potential workers, labor quality is high because of the concentration of
higher education options provided by community, technical and four -year public institutions.
This creates a good match between training and jobs. In addition, employers report that
productivity and a strong work ethic are positive traits of the local labor force. We must make
certain that we are developing a high quality workforce and maintaining an excellent quality of
life for those who work and live here.
Section VI Page VI -4
GOAL F: Increase public understanding and involvement in economic issues.
We have a lot to learn to better understand our local economic issues. Elected officials,
business leaders, the general public, and especially the young people of Greater Whatcom will
benefit from improved economic education. It is good economic development policy to further
our education about the local economy and explain how business decisions by different sectors
affect various communities. To get the kind of diverse public involvement we need in making
decisions about economic issues, we must do a better job of educating all of the community
about these issues.
Chart 23 represents the connection of goals for Greater W hatcom's economic development as
the wheel that moves the Whatcom economy forward.
Chart 23
Economic Development Goals for Greater Whatcom
Increase public
understanding am
involvement in
economic issues
Frodde and ret
high qualitt
workforce
Finance and
maintain appropriate
infrastructure for
community and
economic
development
Ensure sustainable
aIopment and
as of natural
esources
Foster collaborative
working
relationships among
economic
development
stakeholders
Promote a diverse
,conomy by sector
and location
Section VI Page VI -5
C. Strategy Development
After vision and goal setting, the advisory committee developed sets of strategies for each goal
during January- February 2002. Strategies are specific statements that say how the community
will reach its goal in a relatively short time period. They should be measurable, specific and
under local control. Ultimately strategies should be prioritized, but this is not easily agreed upon
and should retain some flexibility.
Strategies should meet these criteria to move to the next level of action planning:
• Beneficial: Are the benefits broad based through wide population served or high
level of need of the target users?
• Sustainable: Will the activities have positive economic, social and environmental
impacts (conversely., are not negative)?
• Sponsorship: Do entities exist that can carry out activities and/or are there
existing efforts that need enhancing?
• Efficiency., Will this optimize the use of limited resources?
Public Involvement
After drafting goals and strategies, the broader Whatcom community was asked to give its input
in the spring of 2002 to help finalize recommendations for the Advisory committee.
1. Invited Participation
The first effort to obtain wider public involvement was an Economic Strategy Workshop
held in March 2002. The purpose of the workshop included the following:
• Provide a forum for more of the community to learn about the regional
economy;
• Provide an opportunity for more people to give feedback to the advisory
committee about work in progress;
• Ask participants to respond to and discuss regional economic goals and
strategies developed by the advisory committee to date; and
• Suggest revisions and priorities for the drafted strategies within each goal.
About ninety attendees of the workshop represented a cross - section of community
interests including public, private, education, non - profit, rural and tribal communities.
The result of the workshop was a preliminary listing of the proposed strategies.
2. Community Workshops
Following the March workshop, community meetings were held in Ferndale, Sumas,
Lynden, Blaine /Birch Bay, Pt. Roberts, Bellingham, Kendall /East County and
Everson /Nooksack. At each meeting, the attendees viewed a video about the project
and were introduced to the goal and strategy list output from the Economic Strategy
Workshop. Participants reviewed the work to date and ranked strategies using "dot
votes." The total number of votes for strategies was intended to provide both a sense of
Section VI Page VI -6
importance for each of the six goals and the priority of strategies within each goal. A
total of 115 community residents attended the meetings.
These meetings were a significant attempt to help the advisory committee finalize the
content in the strategy listing, but represent one piece of the process. Perhaps more
importantly, these meetings were an important first step in outreach and education with
the public about economic development — the first real effort in the county in recent
history.
Workshop findings include the following:
• Participants brought rounded perspectives to the plan.
• Community needs and issues vary across the county.
• There is no clear consensus about strategies.
• Demonstrated the benefit of an ongoing education process.
After the final community meeting on June 12 the individual results were summarized and
provided to the advisory committee for a final decision on the strategy list. The following is the
product:
D. The Basic Economic Development Blueprint
Goal A: Finance and maintain appropriate infrastructure for community and
economic development
Strategies
1. Extend necessary infrastructure to existing industrial -zoned properties,
creating shovel -ready sites that encourage business location, retention, and
expansion.
2. Secure necessary water rights and their availability for the continued viability
of sustainable economic activity.
3. Maintain and improve the vitality of downtown cores and neighborhood
business districts through enhanced pedestrian access, transit and parking.
4. Encourage public agencies that have countywide taxing ability to use that
authority to support private sector investments in appropriate ways.
5. Encourage efforts of agencies to achieve multi -modal transportation
solutions, including road, non - motorized, air, rail and water, to provide
mobility for people and goods throughout the region.
6. Build on the public /private efforts in telecommunications development to
create a fiber optics "backbone" in the county, including private- sector efforts
to extend services to the end customer.
7. Finance priority infrastructure projects through short and long -term financing
plans that maximize opportunities for grants and low interest loans.
8. Seek efficiencies in the use of infrastructure through reuse and
redevelopment of underdeveloped existing lands and buildings, and through
infill of adjacent vacant lands.
9. Complete an overall assessment of natural resources and public /private
infrastructure conditions and needs throughout Whatcom County.
Section VI Page VI -7
Goal B: Ensure sustainable development and uses of natural resources
Strategies
1. Protect natural resources and ecosystems, and encourage development that
enhances air quality, water quality and soil fertility in natural areas and
resource lands.
2. Clearly define sustainable economic development, and integrate sustainable
economic development policies with land use and transportation goals and
other growth management strategies and regulations.
3. Manage W hatcom County's natural resources for recreation.
4. Complete and implement farmland preservation programs to sustain a
productive agricultural economy.
5. Evaluate and account for the ecological and economic functions of
environmental resources in the development process.
6. Complete plans for development or redevelopment of waterfront areas to
support economic growth, while preserving the ecological function of
shorelines.
7. Encourage conservation and recycling in the use of our natural resources.
8. Identify, process and market value -added products to extract more economic
value by using fewer resources and reusing materials into products.
Goal C: Promote a diverse economy by sector and location
Strategies
1. Urge local, state, and federal agencies to improve coordination of
government regulations and foster a fair, timely and predictable permit
process.
2. Provide a supply of sites and buildings serviced by sewer, water,
telecommunications and all- weather road access according to cities and
county growth management plans in order to meet current and future
demand for diverse business and industry.
3. Support and finance marketing of W hatcom County's attributes for growth
and attraction of targeted businesses and industries. Identify and promote
the unique needs and attributes of each area of the county and share
information with economic development prospects to leverage community
strengths.
4. Support the promotion of W hatcom County locally grown and manufactured
products.
5. Review the local taxation and fee structure for competitiveness and
determine fiscal imbalances across the county that may hinder economic
development, and promote policies that advance economic sustainability.
6. Enhance current retention and expansion efforts by improving availability of
business development services and financing.
7. Build on Whatcom County's recreation base to support tourism industries,
and market cultural /heritage sites and events.
Section VI Page VI -8
Goal D: Foster collaborative working relationships among economic development
stakeholders at the community, state, federal, international and tribal levels.
Strategies
1. Work cooperatively with jurisdictions in the lower mainland of British Columbia to
help develop economic, transportation, and environmental initiatives.
2. Include federal agencies that regulate the border in local economic development
strategic planning.
3. Increase leadership and collaboration locally by:
• Working with agencies at the state and federal level to develop opportunities
requiring technical assistance and funding.
• Improving information sharing between local organizations about development
opportunities and resources that are available to them.
• Sharing information about upcoming initiatives and projects that are underway.
4. Coordinate data development relative to economic development such as needs
assessments, demographic/economic data, geographic information systems,
transportation modeling and economic impact analysis.
5. Identify and define the roles of existing community economic development
organizations. Ensure that Whatcom County communities and businesses are
connected to local and regional economic development service providers.
6. Include and interact with local tribal governments regarding economic
development strategies.
7. Provide for the ongoing maintenance, updating and implementation of the Greater
Whatcom Comprehensive Economic Development Strategy.
9. Through the Partnership for a Sustainable Economy, develop and publicize criteria
to prioritize projects requiring countywide public investments. Actions should be
inclusive and respectful of local governments.
9. Evaluate local government services to the rural areas of the county to capitalize
on shared resources for water, sewer, public safety and related public services
section VI Page VI -9
Goal E: Provide and retain a high quality workforce
Strategies
1. Create a competitive workforce by involving business, industry, labor and
education
in partnerships to:
a.
Validate activities by the local Workforce Development Council,
economic development interests and K -20 public education to
connect planning of workforce education programs, business
needs, and strategic economic development goals, and then align
workforce education and training with available and emerging jobs.
b.
Adapt rapidly to changing skills needed by business, and support
life -long learning models.
c.
Create clear pathways to careers by providing a seamless
progression from high schools using apprenticeships and /or two -
year technical colleges to four -year and graduate education.
2. Retain a competitive workforce through investments and development of public
policy to:
a.
Expand access to affordable health care including high -end
specialization for retirees, basic preventive and maintenance care
for workers and young families, childcare and aged parent care.
b.
Maintain a high quality K -10 public education system.
c.
Examine the housing market to determine appropriate policies and
actions for housing that support workforce expansion, including
affordable housing.
d.
Protect and enhance cultural and environmental recreation
opportunities to maintain a good quality of life.
Goal F: Increase public understanding and involvement in economic issues
Strategies
t. Develop a computerized system, similar to the public library system, and an
internet web site to access information such as the status of projects, latest
drafts of documents, and access to general resources.
2. Encourage policymaking organizations and groups to incorporate economic
sustainability in their planning efforts.
3. The Partnership should create opportunities for public involvement using
methods such as community summits, surveys, published materials, group
presentations, and focus groups that ensure the opportunity for the full
diversity of the population to participate.
4. Integrate a basic knowledge of economic sustainability and how the economy
works into education curricula.
Section VI Page VI -10
This collection of strategies identifies a range of techniques to achieve the goals. To make
them real and operational, the most readily attainable strategies must be fashioned into
activities and programs.
The next section defines the action plan; essentially a work plan for economic development
stakeholders engaged in the CEDS process.
Section VI Page VI -11
SECTION VII: ACTION PLAN
The Greater Whatcom Comprehensive Economic Development Strategy is the first countywide
economic development plan completed since 1993. The revived effort has attempted to be more
extensive and inclusive than previous efforts:
• The process has compiled and analyzed current information about the area and
conditions of the regional economy.
• To increase ownership in the plan the process linked local resources by considering
individual community plans in the overall document.
• The process included a better representation of public and business interests to shape
the economic goals.
In short, as the base plan it provides a fresh approach for Greater Whatcom to assemble a
blueprint toward a preferred economic future.
An action plan should answer the question "How do we get there ?" For this strategy it is a
description of activities grouped in projects and programs to accomplish economic development
strategies. The components of an action plan should include activity prioritization and an
implementation schedule. Actions don't have to be unique to each strategy. Several strategies
may be addressed through completion of one action.
Organization of Action Plan
For this initial effort, this action plan identifies a set of short-term activities that can be initiated
and in some cases completed within a two -year period. In addition to short-term actions a
project list has been compiled from community requests that support economic development
throughout the county. Many of these projects reflect significant public investments and require
local, state and federal funding to accomplish.
Goals and Activities are a System
The advisory committee recognizes that comprehensive economic development requires a
system of goals. Goals and strategies require a program to tie them together. Chart 24 is a
graphic view of the relationship. The hub of the wheel is the action plan: the common
connection among goals. This system relationship of goals allows flexibility to respond to
economic development needs as resources become available and opportunities occur.
Section VII Page VII -1
Chart 24
The Action Plan Supports the Goals
Promde and retain a
high quality
workforce
Foster collaborative
working
relationships among
economic
development
stakeholders
Promote a diverse
economy by sector
and location
Prioritization is a necessary effort to allocate time and resources to implement the action plan.
However, completing a prioritization process is a priority action in itself. Beginning with the
Washington Community Economic Revitalization Team (WA -CERT) process, the Partnership for
a Sustainable Economy is working with W hatcom County government to develop a criteria -
based approach to rank public investment projects. The project list in the appendix includes 13
projects identified by the Whatcom County Council for the 2002 WA -CERT round and it includes
candidates for a new prioritization process when it is crafted during the fall of 2002.
Example of a Project Prioritization Method
A process like the following will be developed, called Public Investment Review (pronounced
'peer"). The review committee makeup may be based on an extension of the CEDS advisory
committee and can include technical personnel that have experience designing and reviewing
public investment projects.
First, assisted by guidelines in designing projects and programs, local economic development
proponents need to consider the following questions in relationship to the overall vision and
goals of the CEDS:
Section VII Page VII -2
Finance and
maintain appropriate
infrastructure for
community and
economic
development
Ensure sustainable
development and
uses of natural
Increase public
resources
understanding and
inwhement in
The Action Plan
multiple
eCOOOmIC issues
ate,
strategies and goals
Promde and retain a
high quality
workforce
Foster collaborative
working
relationships among
economic
development
stakeholders
Promote a diverse
economy by sector
and location
Prioritization is a necessary effort to allocate time and resources to implement the action plan.
However, completing a prioritization process is a priority action in itself. Beginning with the
Washington Community Economic Revitalization Team (WA -CERT) process, the Partnership for
a Sustainable Economy is working with W hatcom County government to develop a criteria -
based approach to rank public investment projects. The project list in the appendix includes 13
projects identified by the Whatcom County Council for the 2002 WA -CERT round and it includes
candidates for a new prioritization process when it is crafted during the fall of 2002.
Example of a Project Prioritization Method
A process like the following will be developed, called Public Investment Review (pronounced
'peer"). The review committee makeup may be based on an extension of the CEDS advisory
committee and can include technical personnel that have experience designing and reviewing
public investment projects.
First, assisted by guidelines in designing projects and programs, local economic development
proponents need to consider the following questions in relationship to the overall vision and
goals of the CEDS:
Section VII Page VII -2
• What are the activities and what are their benefits?
• Which activities address the areas or issues of greatest need to best enhance the
region's competitive advantage?
• Do these activities represent the best use of limited resources?
• Will the activities have positive economic, environmental and social impacts?
The CEDS goals and strategies are used as a filter to advance the most comprehensive
projects.
Second, for development projects that require funding, criteria must be specified. Using the
following rating system, actions can be scored on a range of 1 to 5 points to create a
prioritization.
Criteria Point range
1. Project readiness (1 -5)
2. Local commitment (1 -5)
3. Matches needs and benefits (1 -5)
4. Compelling factors (1 -5)
Bonus points may be provided for multiple beneficiaries through joint partnerships and
leveraging different projects.
The advantage of this type of process is that it uses quantitative factors to validate the judgment
of economic development stakeholders. Review processes like this are working successfully in
other Washington counties
Implementation Schedule
The schedule is driven by level of importance and availability of resources. Project proponents
will define their implementation schedule. The advisory committee stresses the need for
flexibility to respond to opportunities as resources become available. Local project sponsors will
ultimately be responsible to implement and manage specific projects.
Project List
Attached to the CEDS is an inventory of project requests. Communities and other economic
development project sponsors supplied the project list based on a form supplied by the
Partnership. A number of projects most suitable for U.S. EDA program funding are indicated.
The inventory is broad -based including transportation projects identified through the regional
transportation planning process, local capital improvement projects, parks and recreation,
environmental protection and restoration and an array of urban and rural priorities identified by
communities.
Section VII Page VII -3
2002 -2003 Action Plan
The following program of 25 activities can be started or assigned during the first two years of the
CEDS implementation. They are forwarded from the advisory committee based on evaluation of
goals and strategies. While numbered, they are not ranked by importance in this report.
For many actions lead agencies, sponsors or proponents are identified to move actions forward.
Other actions proposed by the advisory committee require further collaboration and
identification of a lead. In those cases the Partnership should work to establish lead entities.
Actions that have "started" may require additional funding and organizational resources because
they are only seeded or maybe linked to phased projects. In addition, "recommended" actions
may also drop off the list or be deferred as time and resource available affect implementation.
1. The Partnership for a Sustainable Economy should develop a Public Investment Review
(peer) program to do the following:
• Establish a process for prioritizing projects for recommendation to the Whatcom County
Council for federal, state and local (such as rural sales tax) sources of funding,
beginning with WA -CERT coordination request from Whatcom County government.
• Identify projects that would be appropriate and fundable by U.S. Economic Development
Administration, and other state and federal funding agencies.
• Match appropriate financing to projects identified in the Project List
The FIR process is expected to be in place by January 2003. One EDA planning project and
one public works project that are "ready to go" should go forward for the fiscal year that starts
October 2002.
Status: Started
Supports strategies: A7, A7, D8
2. For the Partnership, the Center for Economic and Business Research at Western Washington
University is completing profiles of important sectors of the Whatcom economy and will
share information by newsletter, website, workshops and an annual "State of the Whatcom
Economy' summit. In addition, the Partnership will update its video on the economic
development blueprint and communicate the findings of the CEDS process to community
groups.
Status: Started
Supports strategy: F3
3. Including the Northwest Workforce Development Council in the process, use the CEBR
economic sector profile project to gather and analyze information on the Whatcom labor force to
help align public education and training sectors with employer needs.
Status: outcome of Action 2
Supports strategy: E7
4. The Partnership will complete an industrial land study to provide base information about
industrial properties and:
• Coordinate geographic information systems data sharing
• Provide suitable sites inventory: what exists now and what's needed
• Identify environmental constraints
Section VII Page VII -4
Begin data collection for web -based information
The study should be complete in the first quarter of 2003.
Status: Started
Supports Strategies: Al, D4, Fl
5. Based on industrial lands study create an inventory of marketable sites,
• Development of new or updating of Bellingham- Whatcom Economic Development
Council website
• Estimate the potential cost to provide serviced sites;
• A lead marketing entity and the Partnership should provide this information to the
general public and private development community.
Status: outcome of Action 4
Supports strategy: C2
6. The Cities, County, Public Utility District #1 and Port of Bellingham should continue to work
within the watershed planning -- Water Resource Inventory Area #1 -- process to ensure the
process results in a management model to create a clear way to enhance natural systems and
ensure the allocation of water in ways that address economic viability in the county.
Status: Started
Supports strategies: 81. B5
7. Complete the CEBR study to define and inventory natural capital, which will provide
baseline information in conjunction with the WRIA process.
Status: Started
Supports Strategies: A2, A1, My B10 B51 B3
8. Whatcom County is currently establishing a purchase of development rights program for
farmland preservation. The County Council should implement the program and then leverage
additional federal resources to expand the program.
Status: Started
Supports strategy: B4
9. The PUD has embarked on a telecommunications effort called InfiNet to achieve high -speed
bandwidth access throughout Whatcom County. The PUD should move ahead with the project
to provide:
• Greatly- sought after services that help both business retention and attraction
• Expansion of telecommunications resource for many existing /new businesses
• High speed Internet connection to rural areas (schools, agriculture, cottage industries)
Status: Started
Supports strategies: A6. Al
10. The Partnership should coordinate a streamlined economic development process based
on the CEDS development that will:
Examine virtual, institutional and physical ways to create a clear contact for the business
community and public at -large to access business development services.
Identify funding mechanisms to assist planning efforts, such as the new USDA Rural
Development Strategic Investment Program; and
Broaden the Partnership's collaborative efforts to
• Washington state and the federal government agencies
• The government and business community of British Columbia
Section VII Page VII -5
o Tribes -- the Partnership is engaging the Lummi Nation and Nooksack Tribal
governments to increase collaboration. The Project List includes joint efforts
between the tribes and local communities.
Status: Started
Supports strategies: All of Goal D and Ft
11. All economic development stakeholders should recognize and define a lead marketing
entity to target and attract businesses and industries from outside the county for all of W hatcom
County.
Targeting efforts should begin with evaluation of existing research including
• Deloitte- Touche study 2001 recommendations
• Sector strengths in high growth manufacturing, wholesale trade, transportation, and
selected services using data developed in CEDS and work by CEBR's contract with
the Partnership.
• Completing a "cluster industry" analysis for the area to identify supportive industry to
build the local economy (CEBR and Northwest Policy Center are possible research
entities)
Status: Recommendation
Supports strategy: C3
12. The Partnership should coordinate with entities such as the Bellingham -W hatcom
Convention and Visitors Bureau, Port, EDC, and Chambers on a county branding(dentity and
marketing strategy for both business development and tourism attraction for Greater
Whatcom. Begin by working with the state on the statewide image campaign being completed
by the consulting firm DCI.
Status: Recommendation
Supports strategy: B3, C3, C7
13. Growth from within, through business start-up, retention and expansion creates the best
opportunity to create local jobs. Therefore, the Bellingham/whatcom Chamber of Commerce,
EDC, Port of Bellingham, and Small Business Development Center should coordinate the
funding and service delivery for business retention and expansion to maximize coverage and
minimize potential duplication of costs or efforts in the following areas:
• The SBDC is creating a new position to expand existing business counseling and
development support to the rural areas of the county.
• To fill gaps in market -based finance capital the Port is evaluating a Solutions Fund
program, and the private sector finance community is proposing a Venture Capital
program.
• The Bellingham/Whatcom Chamber of Commerce operates a Business Service Center,
which provides unique start-up and expansion assistance to small businesses needing
referrals and resource information.
Status: Started
• The Small Business Development Center has proposed complete an assessment of
business lending programs to evaluate business capital development, specifically micro -
lending programs
• EDC, as part of the business capital evaluation, should restructure its Revolving Loan
Fund program to increase availability and participation in the program
• The smaller cities should conduct downtown market analysis to evaluate trade
capture/retail leakage
Status: Recommendations
seonon vu Page VII -6
Supports strategy: A3, C6, F1
14. The individual cities, private sector and the Port of Bellingham should continue to move
forward with existing waterfront planning efforts to determine appropriate redevelopment of
waterfronts, connectivity with downtown revitalization efforts and evaluating ecological functions
of shorelines, including:
• Facilitating public support
• Bellingham waterfront planning, Blaine Marine Drive and Peace Portal boardwalks,
Birch Bay Promenade, Point Roberts pier projects are examples of marine access
projects:
• Efforts in Everson, Lynden and Ferndale to identify Nooksack River access projects.
• Identifying opportunities for public/private investment
This will require at least one year establishing relationships and multiple years to implement.
Status: Started
Supports strategies: B6. A3, several others
15. The Kulshan Community Land Trust should continue to collaborate among the real estate
industry and affordable housing providers to increase local homeownership rates.
Status: Started
Supports strategy: E2(c)
16. To meet the training and related needs of the local labor force, the Northwest Workforce
Development Council has received planning funds to develop new skill alliances in the
manufacturing, information technology and construction sectors. Local economic development
partners should work with NWDC to create an employer- driven focus targeted to Greater
Whatcom.
Status: Started
Supports strategy: El, D5
17. The NWDC should retool its dislocated worker program delivery system to a philosophy
of economic sector management. The NWDC should integrate various programs into a
comprehensive approach to business closures and moving dislocated workers into demand
occupations.
Status: Started
Supports strategy. El, D5
16. Whatcom County and the Port may partner to establish a finance mechanism for the
purpose of staffing a circuit rider position for community /economic development services to the
unincorporated areas of the county to:
• Coordinate and promote economic development opportunities in rural areas
• Provide a resource clearinghouse to improve infrastructure systems for rural areas
• Work with agriculture, forestry and shellfish grower interests on value- added products in
forestry, agriculture and aquaculture (local product marketing, business development
feasibility)
Status: Recommendation
Supports strategies: C3, B80 C41 D3
19. The Partnership, Western Washington University, Cities, Whatcom Council of Governments,
CEBR, EDC and Whatcom County representatives should meet to update existing websites,
consider all economic data development efforts (including IMPACT modeling project, GIS and
Section VII Page VII -7
other systems), and recommend ways to improve protocols for information sharing and keep the
data current and compatible. This should be coordinated with the W RIA effort.
Additionally, through identified computer resources, create an economic development website
that includes information of interest including: the CEDS report; and create a "listserv" to share
information about resources for economic development including funding announcements.
Status: Recommendation
Supports strategy: F1, A1, D4
20. The Port, the county and the PUD #1, the three agencies with countywide taxing
authority, should identify alternative ways to use their revenue - generating ability to invest in
infrastructure that will support private investment; design mutual support mechanisms for use of
this tax authority; and build partnerships with public /private entities. Particular focus could
include:
• Telecommunications, water, sewer, biogas (PUD)
• Industrial Land Banking (County)
• Creation of an Industrial Development District(s) (Port)
Over next 12 months two specific projects should be targeted for funding by these entities.
Status: Recommendation
Supports strategies: A1, A4, D9
21. All agencies responsible for transportation planning should work together to:
• Create an advisory committee within the Whatcom Council of Government's
transportation planning organization to address integration of land use planning and
transportation planning (including political and financing support for the committee)
• Require integration of land use, economic development and transportation planning.
• This can be addressed through implementation of the Transportation Summit
recommendations.
Status: Recommendation
Supports strategies: A5
22. The Partnership should convene and the community should host a countywide summit
about the definitions of sustainable development, and identify ways to incorporate the
community meaning of sustainability into existing regulations and practices. As a follow -on
action to the countywide summit, the definitions of economic sustainability should be
incorporated as a policy statement into all policymaking organizations' planning efforts.
Status: Recommendation
Supports strategies: B2, F2, F3
23. Convene local and state Parks & Recreation agencies and the U.S Forest Service, which
are the primary stewards of Whatcom County's recreation resources. Using CEBR study of
natural capital evaluation methodology, these groups should evaluate and decide how to
continue to fund preservation and protection of open space and natural lands.
Status: Recommendation
Supports strategy: B3
24. A task force of the City and County planning directors, finance officers, and private sector
representatives should be convened to complete a Whatcom County competitiveness study
(similar to the Washington State Competitiveness Council), which will examine such issues as:
Section VII Page VII -8
Countywide coordination and streamlining of the permit processes,
• • Identification of specific tax and fee policies that represent barriers to competitiveness,
• Tax/regulatory incentives that encourage sound environmental economics management;
and
• Policy changes within local control.
Status: Recommendation
Supports strategies: C1, C5
25. School districts W W U's education department, the business community, the CBER and
entities such as RE Sources, should convene a task force for sustainable economics
curriculum integration, and develop a volunteer speaker's bureau to make practical information
about W hatcom's economy available to support this curriculum development.
Status: Recommendation
Supports strategy., F4
Section VII Page VII -9
SECTION Vlll - EVALUATION AND PERFORMANCE MEASURES
An evaluation process is necessary to determine "How are we doing? and "What can we do
better?' Performance measures should be established to evaluate the progress of activities in
achieving the goals. Essentially as progress is made in reaching economic development goals,
measures move in the desired direction.
Short of a more complex performance measure system, progress in completing action plan
items will be the primary evaluation tool. The basic CEDS plan will be reviewed and updated
annually to determine progress in meeting action Items.
In addition, sources of economic and social data can be collected at different points to compare
changes. The CEDS Sections II and III include many sources for indicators. The other aspect
of evaluation is qualitative and more difficult to assess.
Importantly, the Whatcom Coalition for Healthy Communities "Community Counts" project
(April 2002) includes a number of indicators accounting for Community, Health, Economy,
Environment, Safety and Education conditions: essentially the overall quality of life in W hatcom
County. This project provides an excellent starting point to continue to monitor the success of
the countywide economic development strategy.
In addition to Community Counts, possible evaluation measures that fit CEDS goals may
include but are not limited to the following:
A. Finance and maintain appropriate infrastructure for community and economic
development.
• Increased access to broadband telecommunication services across the county.
• Completion of a determined number of appropriate permit -ready building pads
and sites for industrial development.
• Completion of the various capital improvement programs by local governments.
• Increase in the amount of external funding (government- backed grants and
loans) for local projects.
B. Ensure sustainable development and uses of natural resources.
• Acquisition of a determined acreage by local public sectors to hold for future
uses, including non - development.
• Declining occurrences of air and water quality violations.
• Management tools provided by the watershed planning (W RIA #t) process.
• Slow the current trend in productive farmland conversion.
C. Promote a diverse economy by sector and location.
• Increase in aggregate wages among key sectors in services, wholesale trade
and manufacturing.
• Maintaining the growth in the faster growing manufacturing sector jobs.
• Decrease in manufacturing layoffs.
• Increases in capital financing resources available to new and expanding
businesses.
section VIII Page VIII -1
• Increase in number of business expansions originating from Canada and
other international locations.
• Number of new jobs created outside of the Bellingham city limits.
D. Foster collaborative working relationships among economic development
stakeholders at the community, state, federal, international and tribal levels.
• Ease in creating a flow or organizational chart of economic development
partners in the county.
• Number of projects completed with tribal and non - tribal sponsorship.
• Number of federal grants awarded to entities in the county.
E. Provide and retain a high quality workforce.
• Decline in the unemployment rate.
• Increasing participation rate in community and technical college.
• Increasing homeownership rates.
• Percent of workforce provided medical benefits.
• Increasing retention rate of higher education graduates.
• Increase in personal income measures (hourly wages, annual employment
earnings).
• Increase participation in worker apprentice programs.
F. Increase public understanding and involvement in economic issues.
• Number of visits to city councils and civic group about the CEDS.
• Increased student participation in economics courses and organizations like
DECA.
• Number of residents attending public forums on economic issues.
Section VIII Page VIII -2
APPENDIX
COMMUNITY AND ECONOMIC
DEVELOPMENT PROJECT LIST
Supplied by local governments, local development organizations, economic
development agencies and tribes in Whatcom County
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