Peninsula Development Association
Jefferson County Projects
Contents
Olympic Peninsula Visitor Center Reservation System
Water Quality Improvement project for Quilcene Port Facility
Quincy Street Dock Refurbishment
Marine Trades Apprentice Program
Olympic Peninsula Visitor Center Reservation System
Project Description
There is a need, expressed by many tourism related enterprises and the Olympic Peninsula Joint Marketing Board to provide the various Visitor Centers on the OP with a means to determine the availability or rooms, RV space, Transit booking, event tickets etc., through a centralized on-line availability/reservation system.
Phase I of the project would determine the computer hardware and software needs to create such a system and determine the costs of procurement, installation and user training. Local tourist, ferry and transit operators would be asked to partner in this project and assist in the determination of the features and technical specifications required to meet their needs. This phase would be conducted by the EDC and technical consultants who may include potential hardware/software vendors.
Estimated Cost of this phase is $30,000. Deliverables would be a recommendation on the technology direction and software solution with detailed estimates of procurement cost, installation cost and user training costs. In addition, an overall implementation schedule would be derived based primarily on vendor input.
If at this point the project is determined to be economically feasible and participation by subscriber businesses is sufficient then Phase II would be undertaken. Phase II would involve selecting a vendor for the system via a bid process, soliciting the funding and overseeing the implementation of the system and implementing the training process. At this early stage, it is difficult to estimate the total cost of the project other than by using averages of generic system costs. Assuming that the objectives can be met with off-the-shelf software and a minimum amount of local customization and estimate of 25,000 –30,000 per center is reasonable. For 7 centers that amounts to $175,000. Installation and training are typically ½ of the cost of these generic systems so that total cost of phase II would be $350,000 and take from 6 to 9 months.
Purpose
To increase OP revenues from tourism by providing a more convenient way for tourists to be informed of tourism opportunities in the county, to determine the availability of these facilities and make advanced reservations at any visitor center or, on-line from their homes.
Partners
Joint Marketing Board, Washington State Parks, possibly Washington State Ferry System
Benefits to the Olympic Peninsula
Increased Tourism activity and revenues
Estimated Total Project Cost: $380,000
Priority #2
Water Quality Improvement project for Quilcene Port Facility
Project Description
The Port of port Townsend operates a facility in Quilcene which services a number of Oyster businesses. Silting in Quilcene Bay has degraded the ability of this facility to provide clean water from the Hood Canal for required for Oyster Breeding. The market for Oysters continues to grow and local product is now being limited by the supply of fresh, clean water. The Port needs to extend the existing water supply system further into the Canal, into deeper cleaner water in order to increase the capacity without having to increase the capacity of expensive filtration and temperature control equipment.
Purpose
To increase Oyster production capacity in Quilcene Bay and provide jobs for about 28 more people.
Partners
Port of Port Townsend
NRCS RC&D
Coast Oyster
Benefits to the Olympic Peninsula
Jobs for 28 more people at an existing facility.
Estimated Cost
$425,000
Priority #4
Quincy Street Dock Refurbishment
Project Description
“Soundliner” tours is currently planning to use a 192ft Alaskan Ferry to operate Kayak, Bicycle and Walking tours at three of four destinations around the Puget Sound. The company is close to securing funding and is in the process of purchasing the vessel. The company has selected Port Townsend as one of its route “destinations” and would consider it as its “home base” if we had adequate facilities. The vessel is too large for either marina and for the NW Maritime Center who had offered use of their facility.
The Quincy Street Dock would be ideal for this purpose and for other large cruise boats we could entice to Port Townsend. The facility (currently owned by the City) is currently unserviceable and may require “upward of $1,000,000” to refurbish according to Port authorities. However, Soundliner is willing to contribute to this cost if it could be used as a permanent base.
Purpose
The purpose of this project is to research the feasibility and cost of refurbishing the dock, sharing it’s use with local restaurants and shops and converting it into a small cruise-boat center to develop tourism for the Peninsula.
Partners
City of Port Townsend
Port of Port Townsend
Joint Marketing Board
Soundliner
Victoria Express
Benefits to the Olympic Peninsula
Increased tourism revenues and several Marine jobs
Estimated Cost
Phase I: determine costs of dock refurbishment $60,000 (3 months)
Phase II: Actual refurbishment : between $1.6 and $2.0 million. (2 years)
Priority #3
Marine Trades Apprentice Program
Project Description
Several companies in both Jefferson County and Clallam County have expressed the need for more skilled people. Various attempts by local community colleges and the NW school of Wooden Boat building have not been able to satisfy this demand effectively. The industry is looking for a way to train (and cross train) the people they already have employed rather than hiring graduates from these Community College programs. Discussions with the owners of several of the local Marine Trade businesses indicate that there are shortages of very specific skills in both Clallam and Jefferson and these could best be filled by some kind of “apprentice” program. (we have in fact started this project “on a shoe string” with funds from the Marine Trade Association)
Purpose
The purpose of this project is to formally determine the current needs of the local Marine Trades in a very select group of skills (Composite Finishing for example) and then work with the Community Colleges and the NWWBS to provide a tailored curricula and obtain grants to fund instructors drawn from local industry.
Partners
Marine Trades Association
Townsend Bay Marine
Westport Marine
Olympic Workforce Development Council
NW School of Wooden Boatbuilding
Peninsula College
Benefits to the Olympic Peninsula
A shortage of skilled labor is one of the biggest problems in this industry. Solving the problem will enable the local industry to grow at the market rate.
Estimated Cost
Operating Costs : Instructors and Materials for the first year $120,000
Capital Costs: Additional building for welding instruction and composite finishing $400,000
Priority #1
Saturday, July 28, 2007
Thursday, July 19, 2007
PDA planning grant 2007
Narrative
Background
The Olympic peninsula is bounded by the Pacific Ocean to the West, The Straights of Juan de Fuca to the North, Admiralty Inlet and the Hood Canal to the East and Mason County to the South. Access from the mainland is limited to one highway ( HWY 101 from Olympia) and three ferries. The Hood Canal Bridge connects the Peninsula to Seattle via Bainbridge Island and Bremerton ferries. There are also ferries from Port Angeles to Victoria and from Port Townsend to Whidbey Island. There is no local passenger of freight rail service.
The region consists of two counties Clallam (pop 67,000) and Jefferson (pop 27,000). More than 95% of the region is National or State Park, the largest of which is the Olympic National Park, a major tourist attraction.
The incorporated cities in the area are:
Port Angeles 19,010
Port Townsend 8,865
Forks 3,175
Sequim 5,330
Total 36,380
Rural 57,620
Total Region 94,000
Until the mid 1980s, the Olympic Peninsula was a burgeoning economy based almost entirely on lumber, the area’s most abundant natural resource. Ecological regulation enacted at that time to protect the endangered Spotted Owl, soon put a major part of the local workforce out of a job and turned the entire region into an economic disaster area. The decline of the local fishing industry has exacerbated the economic problems and efforts to create a new basis for a sustainable economy in the area have been slow and not dramatically successful.
The fishing industry has not recovered and, more than twenty years after the cessation of logging, the last of the spotted owls are now being rounded up for a captive breeding program. Mitigation funding from the Federal and State government has hardly been proportionate to the scale of the economic disaster perpetrated by the Spotted Owl and much of that funding is scheduled to expire next year.
Change in Average wages 1990 to 2000 adjusted for inflation
Average wages in the region, (adjusted for inflation), actually decreased from 1990 to 2000. Unemployment exceeded 25% during this period. Economic Development Organizations were formed in both counties with a view to reversing this dire economic situation.
Recent Developments
Clallam County adopted a regional locally driven, self-sustaining “cluster” economic development model designed to leverage indigenous industry resources and assets. Clallam actively encouraged large retailers to locate in the county. Jefferson County did not adopt the “cluster” model until recently and discouraged major retailers from locating in the county.
The results of the efforts to develop the economy have been mixed. Average wages in the region are still 20-30% below the State Average. Public school enrollment in Jefferson County has declined to the point where many of the rural schools are not sustainable without property tax levies. Clallam County has seen a slight upturn in enrollment, a reflection of the fact that new family wage jobs are being created.
During the last 10 years, the region has attracted affluent retirees from California and elsewhere due to the natural beauty of the area and the low cost of housing. (relative to other areas) As a result of this increase in demand and a shortage of land suitable for residential building, local property values have soared and are now far beyond the reach of the typical average working family.
The current low unemployment rate of 4.5% is more a reflection of the exodus of our young job seekers to more lucrative job prospects off the Peninsula, and the influx of retirees (40% of the population vs. 25% in 2000) rather than any significant increase in available jobs. The total population has not grown significantly but the 25-50 population has decreased and the 50+ population has increased in both counties.
Most recent retail sales data also indicates that the region is lagging the State. The State of Washington enjoyed a record 9% increase in retail sales last year. Clallam increased by only 7% and Jefferson by a meager 0.8%, a reflection of the growth of the retail industry outside of Jefferson County.
Retail Tax Revenue/Growth 2005/2006
Area Taxable Retail Sales(millions) Retail Trade Only(millions) TRS/person Median Income
Clallam County $1020/ 7.2% $484/3.5 % $15,700 $42,367
Jefferson County $372/0.8% $119/2.1 $13,800 $42,620
Washington State $110,500/ 9% $49,400/7.5% $17,300 $51,794
Median Home prices were $231,000 in Clallam and $179,000 in Jefferson Co. in 2000 approximately 5 times the average regional wage. Today the median home price in Jefferson County is $312,000, 7.3 times the average wage. Clallam County faired slightly better with homes costing about 6.5 times the average wage. A two income family making average wages cannot afford the median priced home in this area.
Median Household Income 2000 2001 2002 2003 2004 2005 2005 % of WA
Clallam County $38,052 $39,702 $39,863 $40,124 $41,108 $42,367 81.8%
Jefferson County $39,122 $40,923 $41,385 $40,852 $41,801 $42,620 82.3%
State of Washington $48,397 $49,286 $49,771 $50,664 $51,762 $51,794
A recent survey of local industries in Jefferson County clearly indicated that a lack of skilled workers is still a major issue. No survey has been made recently in Clallam, but anecdotal evidence suggests that the same problem prevails there. Jefferson County’s manufacturing industry is dominated by Port Townsend paper, the regions largest employer in the private sector. This company has struggled financially for several years and entered bankruptcy in 2006 from which it has recently emerged. The Marine trade industry has seen healthy growth in Port Angeles and Port Townsend in the past. Recently it has leveled off in Port Townsend largely due to a lack of available land zoned appropriately for expansion. Marine trades and Manufacturing in Clallam are continuing to grow at a modest rate.
According to this same survey, Jefferson County is still not a “business friendly” community. This view has been a common result of surveys conducted since 2003
Recent data on the relationship between the public and private sectors is not available for Clallam County.
The growth in Retail jobs paralleled the growth in trade and efforts by the State of Washington and the local Joint Marketing board stimulated tourism in the region. Similarly, the influx of retirees has resulted in an increase in the number of health care workers. Unfortunately, Retail, Health-Care and Tourism are the lowest paid sectors of the regional economy. Together they represent 43% of the total workforce but less than 35% of the payroll. In contrast, local government employs 9% of the workforce but accounts for 15% of the region’s payroll. Growth in these low-paid sectors, unless matched by similar growth in other sectors actually reduce the region’s average wage and strain the already short supply of low income housing.
Conclusions
While the region’s economic development efforts have made a difference, it is clear that not enough is being done to stimulate family wage jobs creation in the region. Growth created by increases in Tourism and the Health Care demands of our retirees will lead to more serious shortages of low income housing and will not create family wage employment opportunities. A major effort is required to increase or higher wage jobs and attract new industries to the area in addition to stimulating our indigenous economy. Some changes therefore need to be made to the Comprehensive Economic Development Strategy submitted to the EDA in 2006.
To accomplish this the PDA needs accelerate its evolution from an “umbrella” role, coordinating the efforts of the local EDCs, to a regional development organization which identifies and focuses on broad projects which provide clear and immediate REGIONAL benefit. The PDA must reach out to all the regional organizations to create a prioritized list of these projects.
The PDA should revise the current (interim) CEDS and also create a detailed five-year plan of key economic development activity with measurable milestones and results. This plan should strengthen and focus the efforts to develop the indigenous industry clusters and include some radical changes in our approach to providing these industries with the skilled people they need. Effective, timely workforce development must be a top priority.
The PDA in conjunction with the local EDCs should embark on a major program to recruit new synergistic businesses to the area and to attract intellectual property developers who offer the opportunity for family wage jobs. Initially companies like this would have to import most of their employees, but eventually would provide family wage jobs to young people educated in the region. Attracting these industries requires identifying and building the modern technology infrastructure needed and providing incentives to these businesses to relocate.
The Scope of Work document attached and the interim CEDS update to be published shortly reflect these changes in direction.
Scope of Work
o Educate the PDA board in the Regional Economic Development process
o Determine concise, formal and measurable goals for the PDA. A reasonable goal would be “Achieve, within 5 years, a regional wage so that a dual-income family can afford the median price home” Set interim annual goals for Average Wage, Number of employees by sector and number of new businesses established
o Institute a formal Project Funding Application process and communicate the application process to all the relevant regional agencies. The application form should mirror EDA requirements to estimate the increase in jobs resulting from the project, the total cost of the project and the partners who support and promote the project.
o Create a formal “Project Review Committee” set regular meetings and develop funding criteria.
o Schedule the participation of Board members to participate in the developing the next CEDS and the five-year-plan according the procedures set out in the guidelines. Both the CEDS and the five-year-plan need to be a “living” document much like a business plan in the private sector where board members participate in its evolution and MEASURE their progress at least quarterly.
o Form Subcommittees charged with each of the major projects areas and have them report formally to the board with the same diligence as the treasurer might. The project areas must include
Workforce Development
o Skill set requirements
o Training requirements
o Joint ventures with local industry
Infrastructure Development
o Zoning
o Sewer & Water
o Fiber Optic and other technology
Solicitation strategy
o Determination of target industries and companies
o Determination of infrastructure and workforce requirement
o Highly targeted solicitation process.
Background
The Olympic peninsula is bounded by the Pacific Ocean to the West, The Straights of Juan de Fuca to the North, Admiralty Inlet and the Hood Canal to the East and Mason County to the South. Access from the mainland is limited to one highway ( HWY 101 from Olympia) and three ferries. The Hood Canal Bridge connects the Peninsula to Seattle via Bainbridge Island and Bremerton ferries. There are also ferries from Port Angeles to Victoria and from Port Townsend to Whidbey Island. There is no local passenger of freight rail service.
The region consists of two counties Clallam (pop 67,000) and Jefferson (pop 27,000). More than 95% of the region is National or State Park, the largest of which is the Olympic National Park, a major tourist attraction.
The incorporated cities in the area are:
Port Angeles 19,010
Port Townsend 8,865
Forks 3,175
Sequim 5,330
Total 36,380
Rural 57,620
Total Region 94,000
Until the mid 1980s, the Olympic Peninsula was a burgeoning economy based almost entirely on lumber, the area’s most abundant natural resource. Ecological regulation enacted at that time to protect the endangered Spotted Owl, soon put a major part of the local workforce out of a job and turned the entire region into an economic disaster area. The decline of the local fishing industry has exacerbated the economic problems and efforts to create a new basis for a sustainable economy in the area have been slow and not dramatically successful.
The fishing industry has not recovered and, more than twenty years after the cessation of logging, the last of the spotted owls are now being rounded up for a captive breeding program. Mitigation funding from the Federal and State government has hardly been proportionate to the scale of the economic disaster perpetrated by the Spotted Owl and much of that funding is scheduled to expire next year.
Change in Average wages 1990 to 2000 adjusted for inflation
Average wages in the region, (adjusted for inflation), actually decreased from 1990 to 2000. Unemployment exceeded 25% during this period. Economic Development Organizations were formed in both counties with a view to reversing this dire economic situation.
Recent Developments
Clallam County adopted a regional locally driven, self-sustaining “cluster” economic development model designed to leverage indigenous industry resources and assets. Clallam actively encouraged large retailers to locate in the county. Jefferson County did not adopt the “cluster” model until recently and discouraged major retailers from locating in the county.
The results of the efforts to develop the economy have been mixed. Average wages in the region are still 20-30% below the State Average. Public school enrollment in Jefferson County has declined to the point where many of the rural schools are not sustainable without property tax levies. Clallam County has seen a slight upturn in enrollment, a reflection of the fact that new family wage jobs are being created.
During the last 10 years, the region has attracted affluent retirees from California and elsewhere due to the natural beauty of the area and the low cost of housing. (relative to other areas) As a result of this increase in demand and a shortage of land suitable for residential building, local property values have soared and are now far beyond the reach of the typical average working family.
The current low unemployment rate of 4.5% is more a reflection of the exodus of our young job seekers to more lucrative job prospects off the Peninsula, and the influx of retirees (40% of the population vs. 25% in 2000) rather than any significant increase in available jobs. The total population has not grown significantly but the 25-50 population has decreased and the 50+ population has increased in both counties.
Most recent retail sales data also indicates that the region is lagging the State. The State of Washington enjoyed a record 9% increase in retail sales last year. Clallam increased by only 7% and Jefferson by a meager 0.8%, a reflection of the growth of the retail industry outside of Jefferson County.
Retail Tax Revenue/Growth 2005/2006
Area Taxable Retail Sales(millions) Retail Trade Only(millions) TRS/person Median Income
Clallam County $1020/ 7.2% $484/3.5 % $15,700 $42,367
Jefferson County $372/0.8% $119/2.1 $13,800 $42,620
Washington State $110,500/ 9% $49,400/7.5% $17,300 $51,794
Median Home prices were $231,000 in Clallam and $179,000 in Jefferson Co. in 2000 approximately 5 times the average regional wage. Today the median home price in Jefferson County is $312,000, 7.3 times the average wage. Clallam County faired slightly better with homes costing about 6.5 times the average wage. A two income family making average wages cannot afford the median priced home in this area.
Median Household Income 2000 2001 2002 2003 2004 2005 2005 % of WA
Clallam County $38,052 $39,702 $39,863 $40,124 $41,108 $42,367 81.8%
Jefferson County $39,122 $40,923 $41,385 $40,852 $41,801 $42,620 82.3%
State of Washington $48,397 $49,286 $49,771 $50,664 $51,762 $51,794
A recent survey of local industries in Jefferson County clearly indicated that a lack of skilled workers is still a major issue. No survey has been made recently in Clallam, but anecdotal evidence suggests that the same problem prevails there. Jefferson County’s manufacturing industry is dominated by Port Townsend paper, the regions largest employer in the private sector. This company has struggled financially for several years and entered bankruptcy in 2006 from which it has recently emerged. The Marine trade industry has seen healthy growth in Port Angeles and Port Townsend in the past. Recently it has leveled off in Port Townsend largely due to a lack of available land zoned appropriately for expansion. Marine trades and Manufacturing in Clallam are continuing to grow at a modest rate.
According to this same survey, Jefferson County is still not a “business friendly” community. This view has been a common result of surveys conducted since 2003
Recent data on the relationship between the public and private sectors is not available for Clallam County.
The growth in Retail jobs paralleled the growth in trade and efforts by the State of Washington and the local Joint Marketing board stimulated tourism in the region. Similarly, the influx of retirees has resulted in an increase in the number of health care workers. Unfortunately, Retail, Health-Care and Tourism are the lowest paid sectors of the regional economy. Together they represent 43% of the total workforce but less than 35% of the payroll. In contrast, local government employs 9% of the workforce but accounts for 15% of the region’s payroll. Growth in these low-paid sectors, unless matched by similar growth in other sectors actually reduce the region’s average wage and strain the already short supply of low income housing.
Conclusions
While the region’s economic development efforts have made a difference, it is clear that not enough is being done to stimulate family wage jobs creation in the region. Growth created by increases in Tourism and the Health Care demands of our retirees will lead to more serious shortages of low income housing and will not create family wage employment opportunities. A major effort is required to increase or higher wage jobs and attract new industries to the area in addition to stimulating our indigenous economy. Some changes therefore need to be made to the Comprehensive Economic Development Strategy submitted to the EDA in 2006.
To accomplish this the PDA needs accelerate its evolution from an “umbrella” role, coordinating the efforts of the local EDCs, to a regional development organization which identifies and focuses on broad projects which provide clear and immediate REGIONAL benefit. The PDA must reach out to all the regional organizations to create a prioritized list of these projects.
The PDA should revise the current (interim) CEDS and also create a detailed five-year plan of key economic development activity with measurable milestones and results. This plan should strengthen and focus the efforts to develop the indigenous industry clusters and include some radical changes in our approach to providing these industries with the skilled people they need. Effective, timely workforce development must be a top priority.
The PDA in conjunction with the local EDCs should embark on a major program to recruit new synergistic businesses to the area and to attract intellectual property developers who offer the opportunity for family wage jobs. Initially companies like this would have to import most of their employees, but eventually would provide family wage jobs to young people educated in the region. Attracting these industries requires identifying and building the modern technology infrastructure needed and providing incentives to these businesses to relocate.
The Scope of Work document attached and the interim CEDS update to be published shortly reflect these changes in direction.
Scope of Work
o Educate the PDA board in the Regional Economic Development process
o Determine concise, formal and measurable goals for the PDA. A reasonable goal would be “Achieve, within 5 years, a regional wage so that a dual-income family can afford the median price home” Set interim annual goals for Average Wage, Number of employees by sector and number of new businesses established
o Institute a formal Project Funding Application process and communicate the application process to all the relevant regional agencies. The application form should mirror EDA requirements to estimate the increase in jobs resulting from the project, the total cost of the project and the partners who support and promote the project.
o Create a formal “Project Review Committee” set regular meetings and develop funding criteria.
o Schedule the participation of Board members to participate in the developing the next CEDS and the five-year-plan according the procedures set out in the guidelines. Both the CEDS and the five-year-plan need to be a “living” document much like a business plan in the private sector where board members participate in its evolution and MEASURE their progress at least quarterly.
o Form Subcommittees charged with each of the major projects areas and have them report formally to the board with the same diligence as the treasurer might. The project areas must include
Workforce Development
o Skill set requirements
o Training requirements
o Joint ventures with local industry
Infrastructure Development
o Zoning
o Sewer & Water
o Fiber Optic and other technology
Solicitation strategy
o Determination of target industries and companies
o Determination of infrastructure and workforce requirement
o Highly targeted solicitation process.
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