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Port plan a Gateway to regional economic success

Never in its 93-year history has the Port of Vancouver been better positioned to deliver on its stated mission "to provide economic benefit to our community," by creating new jobs for Southwest Washington. With Clark County continuing to register higher than average unemployment rates, this mission is even more critical.

Building upon a strong recovery in maritime trade last year and renovation of its waterfront facilities, the Port has developed an aggressive plan that will attract stable, long-term businesses to our community and generate thousands of family wage jobs for our residents through the development of its Columbia Gateway and Rufener properties.

More jobs for Clark County workers translates into economic vitality for Southwest Washington. Dollars earned through new jobs at the Port will be spent in local stores and will generate taxes that benefit our community. Currently, 5,500 direct, indirect, and induced jobs are tied to activities at the Port of Vancouver. These jobs have an average salary of $46,000, total $242 million in combined wages, and contribute $28.5 million in state and local taxes each year. Business activities at the Port are projected to double with the planned expansion generating an additional $300 million to $450 million in economic activity for our region.

Now is the time to develop the 600 acres of available land at the Port to create needed jobs and take advantage of current economic conditions:

• Waterborne trade is projected to grow by at least 65% by 2025 and congestion at West Coast ports is driving more of this cargo to the Columbia River region.
• Ports with available land, like Vancouver, are in the best position to take advantage of this growth.
• Very viable and significant potential customers who could utilize the majority of the Columbia Gateway property as early as 2010 have been identified.
• To secure this business for Vancouver, infrastructure at Columbia Gateway - utilities, facilities, and transportation access - must be developed. If the property is not ready, potential clients could sign long-term leases elsewhere.

To finance this development, the Port is considering using a combination of operating revenues, borrowed funds, interest income, grants and its option for a six-year Industrial Development District (IDD) levy. The Port currently receives only 3% of all property taxes collected in its district and this money represents 12% of its budget. Tax funds are used only for capital improvements, bond payments and environmental cleanup while revenue generated by marine and industrial activities finances daily operations.

The IDD levy will generate an additional $60.1 million in tax revenue over 6 years and provide the funding base to leverage the investment for our growth. The owner of a home with an assessed value of $175,000 would pay approximately $77 per year for the IDD levy assessment. Added to the regular Port levy of 44 cents per $1,000 of assessed property value, the total taxes would be $154 per year for the six-year period. Property tax exemption programs for senior citizens on fixed incomes would apply. The IDD levy is a one-time option to generate funds for a specific project that expires after six years. It cannot be renewed.

In exchange for tax dollars, what does the Port provide for the average Clark County resident? Automobiles, consumer electronics, jet fuel, steel and malt for American microbrews are just a few examples of the diverse and familiar products that pass through the Port every day. More than $800,000 in taxes paid on Port tenant leases helps fund public services to our community when distributed each year to the state's general fund (50%), the city (32%), local schools (11%) and other agencies. Port activities generate almost $800 million in business revenues each year which provide additional taxes to fund city, county and school services.

The IDD levy will provide critical funding to develop the port's remaining property, helping our community prosper. No one wants to raise taxes. It is not a matter to be taken lightly. But the long term benefits of stable industrial development and family wage jobs are the port's goals.

The Port of Vancouver Board of Commissioners will consider Port staff's recommendation to issue the IDD levy at its next regularly scheduled business meeting Tuesday, May 24th, 2005, at 9:30 a.m.