Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - April 25, 2003
Contact:  Kirsten Kendrick, Governor's Communications Office, 360-902-4136

Gov. Gary Locke Applauds Passage of Legislation to Spur Economic Development in Rural Washington

CERB to Receive Permanent Funding under Locke’s Requested Legislation

OLYMPIA - Gov. Gary Locke today applauded the state Legislature for passing legislation that he requested to help spur more economic development in rural areas of Washington state.

The House today passed Substitute Senate Bill 5363, which will provide the Community Economic Revitalization Board (CERB) with permanent funding. The funds, estimated at about $900,000 per year, will come from the interest earnings from the Public Works Assistance Account, which currently go to the General Fund. The allocation to the CERB account will begin July 1, 2005, and will supplement other funding sources for CERB, including loan repayments and the earnings from its own account.

The governor will have 20 days to sign the legislation after the regular session ends on Sunday.

“CERB has created thousands of jobs for rural areas,” Locke said. “I am very pleased that the Legislature passed our bill to create a more permanent funding source and keep this valuable program alive."

The governor thanked the prime sponsors of the legislation in the Senate and the House - Sen. Pat Hale, R-Kennewick, and Rep. Velma Veloria, D- Seattle. "I applaud Sen. Hale and Rep. Veloria for their hard work on such important legislation," he said.

CERB is the state's only economic development infrastructure program targeted to support business and industrial job growth in partnership primarily with rural communities. It provides low-interest loans or, in unique circumstances, grants to local governments to help finance the construction of public facility projects required by private sector expansions and job creations.

Counties, cities, towns, port districts, economic development districts and federally recognized Indian tribes are eligible to apply for CERB assistance. Eligible public facilities include bridges, roads, domestic and industrial water, sanitary sewer, storm sewer, railroad spurs, telecommunications, electricity, natural gas, general purpose industrial buildings and port facilities.

“This legislation will allow even more Washington business to grow and expand in rural areas, and help attract even more companies to locate in our state,” Locke said.

During the past year, seven national chains have opened or broken ground on regional distribution centers in Washington state – Dollar Tree Stores, Inc., in Ridgefield; Home Depot and Target in Lacey; Wal-Mart in Grandview; Safeway in Auburn; Vanity Fair/Jansport in Everett; and Ferguson Enterprises, Inc., in Richland. A $780,000 CERB loan and $183,000 CERB grant to the City of Richland funded the road and rail spur needed to persuade Ferguson Enterprises to locate in Washington.

Other recent examples of CERB successes include:

· A $150,000 grant and $80,000 loan to the Port of Grays Harbor to assist with building improvements at the Westport Shipyard’s Hoquiam facility. Locke just visited the main shipyard in Westport on Wednesday;

· A $998,000 loan and $300,000 grant to the Port of Moses Lake to assist with building, road, and rail improvements that brought Genie Industries to Moses Lake; and

· A $400,000 loan and $400,000 grant to the Okanogan PUD to provide telecommunications infrastructure to support NCTeleserve, Inc., and other telecommunications-dependent businesses.

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