Category: Business

  • Oregon lawmakers doing their jobs

    Lawmakers in Oregon appear close to doing their jobs. The people’s representatives hashed out a tax package Wednesday designed to fund long-term investment in the state — and they didn’t simply refer the issue back to voters.

    Even the lobbyist for the Oregon Business Association was impressed:

    “To me it’s a historic moment,” he said. “We finally set partisan politics aside long enough to look at the good of the state.”

    But wait. On Thursday — days before the tax plan is formally approved — Republicans and an outside anti-tax group launched ads attacking Democrats for the proposal.

  • Tuscan resort coming to … Yakima

    Work could begin this summer on a $500 million Tuscan-themed village on a ridge east of Yakima, potentially diversifying the economy of an area that already promotes itself as Washington’s Palm Springs.

    Concentrating growth in towns in order to preserve open space and farmland would be ideal. But planned development is the next best option — the project already is being compared to Suncadia, a resort community near Ellensburg that targets Seattle refugees.

    The Vineyards project would be developed by a group that put together resorts in Crested Butte, Colo. and in Mexico. Eagle Resort Development already mentions the area on its web site.

  • Why Fairmont isn’t quite on top

    Fairmont Hotels & Resorts wants to be seen as an “unrivalled global presence.” Yet a few recent visits suggest why it’s not quite there.

    Friday night I stayed at the Fairmont Waterfront, which is the highest-rated of the company’s properties in downtown Vancouver. Desk service was professional, the room was comfortable and the city-and-harbor view was great — all as expected. But when the elevators went out of service at around 10 p.m. — leaving at least 15 people waiting in the lobby — there was no explanation. The next morning two of the elevators were still offline. There was no apology and management didn’t give the impression that they were especially concerned about the inconvenience.

    Similar service at Fairmont’s hotels at Whistler and in Seattle has also cost the chain. This is part of the reason why so many in Seattle were concerned when Fairmont took over management of the Olympic Hotel (a replacement Four Seasons is under construction). Don’t get me wrong: Fairmont is still a great place to stay, it’s just not quite top-of-the line.

  • Supreme Court rules against timber competition

    The U.S. Supreme Court ruled in favor of Weyerhaeuser in a major antitrust dispute, a verdict that makes it harder for small companies to compete against global powerhouse firms.

    The case turned on the difference between ruthless competiton and unfair business practices in the Northwest lumber market. The court essentially said that a small Washington mill couldn’t prove that Weyerhaeuser put them out of business unfairly by bidding up the price of logs.

    The case took second billing Tuesday to another involving a massive ruling against Big Tobacco. But there’s hardly a bigger issue for Cascadia and the future of the natural resources industry in the Northwest. The case seems similar to the prosecution of Microsoft during the 1990s and the effects may be equally widespread.

    Here’s a critique of the court’s verdict.

  • Incentives lure nonstop connection to Paris

    Air France will launch the first nonstop flights from Seattle to Paris, a sign that that a package of incentives designed to lure international flights may be paying off.

    air france a330; spottersblog.comA nonstop to Paris has been under discussion for years — I remember reading that it was imminent in a Seattle Weekly article at least a decade ago. Meanwhile Seattle has steadily lost international air connections to Hong Kong, China, Mexico and elsewhere, despite the region’s growth as a travel market and even as Vancouver and Portland added flights.

    Under a plan approved last week by the Port of Seattle, landing fees for new international air service will be waived during their first year and 75 percent of the fees the following year, according to the Seattle P-I. Facilities charges will be cut 75 percent for each of the first two years, and the Port will contribute $250,000 the first year, $160,000 the second year and $45,000 the third year to a marketing program for the route.

    Oregon used a similar marketing program to lure nonstop routes to Mexico, Japan and Germany. Portland beat Seattle to lure Germany flights and has since restored several domestic nonstops. Compared to some of the other financial deals ports do, these incentives are practically a bargain.

  • Study: B.C. could be energy self-sufficient

    British Columbia could produce all the energy it needs within 20 years, according to a study by a Vancouver foundation that promotes environmental business.

    The Globe Foundation forecast assumes that B.C.’s population increases by 30 percent by 2025, raising demand for energy by 20 percent. It also assumes higher oil prices and the development of solar, wind, biomass, geothermal and tidal energy resources, plus development of a major dam and coal-gasification infrastructure.

  • Wind company proposes first turbines in Yakima

    A wind farm developer wants to build the first turbine towers in Yakima County in order to test the potential for power generation there.

    The possibility of turbines in the wind-swept Rattlesnake Hills is the latest move to find resources that could meet the state’s requirement for more renewable energy. Yet it’s unclear how the economics of the project will pencil out and how much potential impact it would have on the area.

  • Sonics want more money than the arts

    If libraries, the opera hall, symphony hall and sculpture garden can all be built with mostly private money, why not a new stadium for the Sonics, asks Danny Westneat. “Maybe it’s because the business of basketball is simply broken. It can’t survive without being a ward of the state.”

    Surely the Sonics’ opening request for $300 million in state-authorized taxes last week was too much. Yet the economic benefit from a new stadium makes some public investment worthwhile. As the column above suggests, the real question is what’s the appropriate portion? Maybe 30 percent of the total cost?

  • Don’t overlook regional trade

    The booming trade between Cascadia and China is important and regularly grabs headlines. But that shouldn’t make the key trade across the Canadian border an afterthought. See yesterday’s story in The Oregonian: “Canada remains Oregon’s No. 1. foreign customer for a fifth straight year.”

    Imagine if trade within the region got media and political attention commensurate with its economic importance.

  • Imports may squeeze regional timber industry

    As if the region’s timber industry weren’t under enough pressure, with slumping demand from housing dragging wood prices lower, some home builders are eyeing new supply from Europe and Russia.

    Looking for new suppliers is a consequence of the recently signed U.S.-Canada lumber agreement, which imposes fees and quotas on softwood exports to the U.S. when prices fall below a certain point. Builders are showing opposition to the agreement by making business ties elsewhere, according to a rare A2 story on the industry in the Wall Street Journal (subscription required):

    Jerry Howard, chief executive of the National Association of Home Builders, says the agreement will unfairly raise prices and add volatility to supply, and it is forcing his industry to look for new sources of lumber.

    ‘If I don’t get the price of milk at one store that I want, I go to another store,” says Mr. Howard, who traveled to Sweden and Russia last fall to begin courting lumber suppliers there.

    The group’s initiative is the latest salvo in a decades-long dispute. In past years, the trade group had pushed for an end to U.S. import duties on Canadian wood and urged Canada to continue fighting those duties.

    After the U.S. and Canada signed their lumber accord last year, Mr. Howard says, the builders “were upset that the Canadians caved in. We supported them the best we could. We continue to tell them we prefer to do business with our neighbors to the north. But we also want to put our members in the best possible business climate.”

    When the dispute flared up in the past, Mr. Howard said, the group responded by encouraging members to use alternative framing materials, such as steel. The latest strategy is to try to diversify their sources of lumber.