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For Immediate Release

PORT OF VANCOUVER PURCHASE RETURNS JOBS TO FORMER SMELTER SITE

February 2, 2007 -- The Port of Vancouver will bring life, and jobs, back to a site that housed one of Clark County’s major industries for over six decades. The port has signed letters of intent with Alcoa, Inc. and Evergreen Aluminum LLC to purchase the former aluminum smelter and aluminum fabrication facility property for $48.25 million.

Use of the site for a combination of marine and industrial operations will generate 4,673 jobs with an annual payroll of $225 million, according to a study by John Martin & Associates, national experts on maritime and industrial economics. Another 2,000 construction jobs will be created by the development resulting in $70 million in wages and salaries and total economic activity of $227 million.

“This property is one of the last waterfront industrial sites of its size available on the West Coast,” said Larry Paulson, Port Executive Director. “It will allow the port to capitalize on exploding growth in international trade to generate economic value and nearly 5,000 new jobs for our community.”

Alcoa, Inc. and Evergreen Aluminum LLC are the owners of the 218-acre site located on the Columbia River between current port operations and its future development at Columbia Gateway.

Evergreen Aluminum owns the smelter which includes 111 acres. The port will pay $24.5 million for that portion of the site and $23.75 million for the remaining acreage and dock facility that are owned by Alcoa.

Opened in 1940 by Alcoa, the facility supplied aluminum for military needs during WWII and the Korean conflict, and later for international and domestic markets, such as the aerospace and electrical equipment industries. The facility expanded to include fabrication and extrusion operations and employed some 1,500 workers in the 1950s. The facility employed around 630 workers when it was curtailed in 1999 due to skyrocketing electricity prices.

JOBS & REVENUE FORECASTED

The property is suited both for marine cargo operations and industrial development, Paulson said. Exact use will be determined by several factors, including the number of jobs generated by a particular operation and the stability and average wage of those jobs; revenue produced by the activity, and environmental impacts.

The Martin study projects those operations will generate annual business revenues of $1.3 billion and $24 million in state and local taxes to help fund public services.

PROPERTY NEEDED FOR GROWTH

Acquisition of this site will enable the port to take advantage of growth in international trade, particularly in the Pacific Rim region, and to increase the limited supply of industrial-zoned land in Clark County.

A recently-completed trade capacity study forecasts a 67% increase in cargo to Portland-Vancouver ports by 2025. In addition, the port’s long-term contracts with eight shippers and record tonnage growth in multiple commodities could fill existing dock and storage space within a couple years.

Breakbulk and project cargo volumes at the port have increased 128% over the past five years and wind energy project cargo will grow 300% in 2007 alone. The port’s non-marine industrial facilities have been near 100% capacity in recent years. Available industrial land in Clark County is less than current demand, particularly sites that are ready for development.

In 2005, port activities added $1.6 billion in economic value to the region and resulted in 15,580 jobs and $82 million in tax revenues for the community. All of those figures can be expected to grow with port expansion.

PORT OWNERSHIP BENEFITS OUR ECONOMY AND SUSTAINABLE DEVELOPMENT

The port will work with Alcoa and Evergreen to ensure that these long-term industrial lands are properly remediated and put back into productive use. By reusing these facilities, the Port will be able to take advantage of the existing infrastructure and allow the facilities to continue to be a critical aspect of the region's economic base.

As a condition of sale, the sellers, who have been working proactively with the Department of Ecology to perform environmental cleanup since the early 1990s, will complete environmental programs that will allow continued industrial use of the property.

FUNDING OPTIONS CONSIDERED

Port commissioners will consider funding options for the property purchase at a special meeting on Monday, February 5 at 4 p.m., including implementation of a six-year Industrial Development District levy. In order to implement an IDD levy in 2008, the commission must file a Notice of Intent to Levy by February 13, 2007.

If implemented, the tax levied on a home currently valued at $250,000 would average around $112 per year. The six-year levy would generate around $78 million total. The levy cannot be renewed.

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The Port of Vancouver, USA, created by Clark County taxpayers in 1912, is one of the major ports on the Pacific Coast. Its competitive strengths include available land, versatile cargo handling capabilities, vast transportation networks, a dependable labor force and an exceptional level of service to its customers and community.

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Contact:
Nelson Holmberg, Communications Manager
direct: 360.992.1107 or mobile: 360.518.2553
email: nholmberg@PortVanUSA.com