Governor Gregoire Announces Investments to Boost Jobs and Business Growth

For Immediate Release: November 29, 2006

Benton, Garfield, Kittitas and Pacific counties to receive economic growth grants

OLYMPIA � Governor Chris Gregoire today announced that Benton, Garfield, Kittitas and Pacific counties have been awarded $1,661,750 in economic growth grants from the Community Economic Revitalization Board (CERB).

�Investing in Washington businesses and growing jobs while we protect our environment is an important step to keep Washington competitive in the global economy,� said Governor Gregoire. �We want the world to know that Washington is a business- and family-friendly state.�

CERB finances public projects that encourage new development and expansion. Improvement projects include industrial water and sewer, industrial wastewater treatment facilities, telecommunications, electricity, natural gas, roads, bridges, general-purpose industrial buildings and port facilities.

�CTED helps communities build successful and sustainable local economies across the state,� said Juli Wilkerson, Director of the Washington Department of Community, Trade and Economic Development. �We offer technical assistance to applicants before projects are considered by the Board and we manage the grant and loan projects for the Board after decisions are made. We�re pleased to work with the Board in support of Washington's business climate.�

Counties recently awarded CERB grants are:

• Benton County: a $25,000 matching grant to the Port of Kennewick to conduct a feasibility study of a wine industry small business incubator building;
  
• Kittitas County: $1,000,000 in loan and grant funds to help the Ellensburg Business Development Authority construct an industrial building that supports expansion of a software development company;
  
• Garfield County: a $16,750 matching grant to the Port of Garfield to conduct a feasibility study of an industrial building to attract new business development; and
  
• Pacific County: $620,000 in loan and grant funds to assist the Port of Ilwaco in making dock improvements to support a commercial seafood processing company.

�The CERB program responds to emergent business development needs for public infrastructure,� said CERB Chair Tom Trulove. �We provide long-range feasibility planning to help communities prepare for future business development.�

Approved projects will leverage local funds and retain or add jobs in these counties:

In Benton County, the Port of Kennewick will conduct a feasibility study to determine if a wine incubator building is economically feasible in the Tri-Cities area. The incubator building would house wine production and supporting industrial businesses. The feasibility study will evaluate the site, with a focus on the Port�s West Richland site, close to the Red Mountain American Viticultural Area, a 4,400-acre federally designated grape-growing and wine-producing region between Benton City and West Richland. The study will evaluate the building size, configuration and costs, types of businesses suitable as industry cluster tenants, marketing strategies to prospective tenants and other considerations. CERB funds will be matched with $12,500 from the Port of Kennewick. Total public support for the project is $37,500.

The federal government in 2001 approved the Red Mountain appellation. Its oldest vines are only about 30 years old, but existing growers receive payment of two to three times more per ton than for grapes grown elsewhere in Eastern Washington. Red Mountain grape prices are on par with high-end Napa Valley grape prices. Irrigated soil and the dry climate are best known for producing red grape varieties like cabernet sauvignon, merlot, cabernet franc, syrah and sangiovese.

In Kittitas County, CERB approved an $800,000 loan and $200,000 grant in November to the Ellensburg Business Development Authority (EBDA) for construction of a 15,000 square foot industrial building in the EBDA Bowers Field Airport Industrial Park. The EBDA will own the building and lease it to Comtronic Systems LLC, an expanding local software design business. Comtronic Systems estimates 38 new full-time jobs will be created, with future expansion expected. Comtronic Systems generally employs programmers and computer technicians with technical degrees. Annual average wages are expected to be about $70,000, exceeding the county�s average annual wage by 63 percent. Comtronic Systems� new product, �CallThru,� a call center technology, is credited with their need to expand.

In Garfield County, the Port of Garfield will examine the feasibility of constructing a steel industrial building to attract industry to a predominately-declining agri-based rural economy. Past investments by CERB and the community build on the feasibility-planning project approved by the Board. CERB funds are matched with $16,750 from the Port of Garfield. Total public support for the project is $33,500.

A new access road to by-pass the residential areas and connect Highway 12 with the Port�s industrial site was constructed in 2004 with CERB help. Funding to renovate a building next to the new road to accommodate a seed-processing tenant was secured in 1994 with CERB assistance. The County, Port, City and Palouse Economic Development Council collaborated to update their rural communications and, as a result, Garfield County now has DSL and wireless communications capabilities that will help attract businesses.

In Pacific County, the Port of Ilwaco will rebuild the dilapidated C dock, which is used for commercial fishing, and dredge around the dock area. The Port will improve the larger slips that are needed for whiting and sardine vessels that deliver to Jessie�s Ilwaco Fish Company, Ilwaco�s largest employer. Electrical utilities on the docks will be upgraded. The Port is permitted to dredge the fishing vessel berths to a depth of 18 feet MLLW (mean lowest low water) to allow free movement of fishing vessels, regardless of tide level.

Dredging will allow 24-hour access to the docks for the safest and best fishing opportunities. Jessie�s Ilwaco Fish Company is dependent upon the commercial fishing fleet to stay in business. Contingent upon the CERB investment at the Port of Ilwaco, Jessie�s will construct a new $4 million processing/freezing facility to grade, box-freeze and ship sardines and whiting. Dock improvements are necessary to retain 87 existing full-time jobs at Jessie�s and create 12 new full time jobs. CERB funds will be matched with $154,666 from the Port of Ilwaco. Total support for the project is $774,666.

The Department of Community, Trade and Economic Development is the lead state agency charged with enhancing and promoting sustainable communities and economic vitality in Washington. For more information about CTED and CERB, visit www.cted.wa.gov.

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