Category: Business

  • Needed: Someone in charge of regional transportation

    To stem worsening gridlock, the Puget Sound area needs a single agency with the power to prioritize, plan and finance transportation projects.

    seattle region traffic on 520; image by lightrailnow.orgThat’s the key recommendation of a preliminary report released Wednesday by the Regional Transportation Commission, a group set up by the governor earlier this year. The group plans to issue specific proposals and funding ideas by the end of the year.

    The report is significant because it lays out a series of observations — though seemingly obvious — that haven’t been made at a statewide policy level. It’s an effort to break the log jam of the area’s six transportation agencies, which famously bat over priorities and jurisdiction (remember the Seattle monorail versus Sound Transit light rail versus Metro?). It’s worth noting that Vancouver and Portland have regional transportation agencies that already have made substantial progress.

    Among the key points from the 171-page report:

    — As soon as next year, the legislature should create a regional entity that’s empowered to prioritize, plan and finance regional transportation infrastructure.

    — Regional governance should be based on regional goals and objectives and should stitch
    together existing agencies rather than create a new layer of bureaucracy.

    — The body should have the authority to address the critical needs in planning and finance,
    including responsibility for certain elements of growth management and land use.

    — A regional governance structure should be able to address all tax and usage based
    revenue sources as a part of a systemic financing strategy.

    — The region should use dynamic tolling, faring and parking fees in order to shift demand so that transit serves more peak-hour users. Taxes should be used to shift demand, not as the main financing tool.

  • Expect to hear more from microbrewers

    Brewers of craft beer in Washington hope a new marketing group will help them mimic the success of the state’s wine promoters.

    The state-sanctioned commission will represent breweries that produce less than 100,000 barrels annually per location. The first priority is promotion of Washington beer inside the state, where 99 percent of beer consumed reportedly comes from elsewhere.

    The commission, approved by the legislature this year, will pay for itself by charging brewers 10 cents per barrel on up to 10,000 barrels per brewer, and will generate revenue from commission-sponsored festivals. Washington has 84 microbreweries, trailing only California and Colorado.

  • Jobless rates near record lows

    Unemployment rates in Cascadia dropped again in October, a sign of the region’s strong job market.

    Washington’s jobless rate dropped to 4.8 percent, sending the average so far this year to 4.9 percent, the lowest since 1999. Oregon’s jobless rate stood at 5.1 percent and Idaho’s stood at 3.2 percent, well below the national rate of 4.4 percent. British Columbia’s rate was 4.6 percent, compared to 6.2 percent nationally.

    In the Seattle area, unemployment dropped to 3.9 percent. The lowest rate in Washington was in San Juan County, with 2.9 percent, while the highest was in Columbia and Grays Harbor counties, with 6.4 percent — almost two points less than the month before.

  • Cascadia firms pass green test

    A handful of Cascadia companies are among the top 50 eco-friendly businesses in the U.S., according to Inc. magazine. The subjective list, called the Green 50, is a play on the magazine’s annual ranking of 500 top startups.

    A few caught my eye:

    Burgerville, a Vancouver, Wash., fast-food chain, shoots for near-sustainability. It buys all its beef from a natural coop, powers its restaurants with wind power and started a program to turn cooking oil into bidiesel.

    Ryzex Group of Bellingham recycles bar-code scanners and other electronic equipment. It expects revenue of $75 million this year.

    Collins Companies of Portland among the first timber companies to seek certification from the Forest Stewardship Council, an organization that vouches for the long-term viability of forests.

    Teragren of Bainbridge Island, Wash., uses sustainably grown bamboo for floors and furniture. Fast-growing bamboo supposedly has less impact that other kinds of wood. The compay is trying to market it for building materials such as trusses that have traditionally belonged to softwood.

    Prometheus Energy of Seattle developed a process to capture and purify methane gas, and turn it into liquefied natural gas to power buses. The company taps landfills to power buses in nearby communities.

  • Seattle’s Sonics snub isn’t the last word

    One of the 10 most-emailed stories on nytimes.com Monday told how Seattle voters gladly chased away the Sonics by refusing to pay for a new arena. In the photo, the head of the group that sponsored the vote, Citizens for More Important Things, stands in the rain in front of a billboard adverizing a Death Cab for Cutie show.

    Clearly Seattleites are tired of subsidizing millionaire owners who won’t even invest in winning teams. In an era when the city can’t properly fund its schools, clinics or roads, there’s no reason to spend another $200 million to rebuild an arena. (Here’s a summary of events so far.)

    But it’s also true that the vote missed the importance of major-league sports to the Seattle area.

    “I’m not saying it’s the most important thing or the only thing, but I think professional sports are an important component to the overall economy and quality of life in any marketplace,” the new Sonics owner told the New York Times. “It’s about flying the flag of the city nationally and globally.”

    Maybe the best outcome would be a privately funded stadium (that could also house a pro hockey team) in Bellevue, right next to the future light rail lines. The state legislature will be under pressure in January to help at least with area infrastructure. That seems reasonable if the funding also covers arts groups and other entertainment that make the area attractive.

  • Vancouver project needs bailout

    Vancouver’s massive new convention center wants financial help, making it the latest project to seek a bailout from British Columbia taxpayers.

    Backers haven’t said exactly how much they need, on top of the C$362 million the province has already committed for the 1.1 million-square-foot waterfront project. The bill would follow rising costs for the Olympics and transit projects.

    Though the convention center would surely provide future economic benefit, the city is currently considering stifling tax increases now.

  • Too much rain for business — even for Cascadia

    Cascadia is no stranger to fall rainstorms. But this year’s record-setting onslaught is already causing economic damage across the region — and it’s barely mid-November.

    There may have been too much water even for salmon. The floods likely washed fish away from spawning areas, potentially cutting the number of salmon that can be caught in the future.

    Despite the intensely local coverage of the storms so far, their impact has been roughly even from southern Oregon to British Columbia. Roads have been washed out, trains halted and ferries cancelled. Farmers face months of costly cleanup from flooding in valleys from the Willamette to the Chilliwack. In Oregon, damage to roads leading to Mt. Hood threatens the tourist industry.

    On the flip side, rebuilding should be helped by government disaster aid following declarations of states of emergency in 24 counties in Washington and at least nine more in Oregon. The storms have been dumping heavy snow across the Cascades, which may mean a robust start to ski season — as soon as skiers can get to the mountains.

  • Vancouver wants room for more whales

    A recent poll found that 85 percent of Vancouver-area residents support expansion of the city’s aquarium in Stanley Park, a project that would boost a major tourist magnet in time for the 2010 Olympics.

    The poll, which was sponsored by the aquarium, paints a sharp contrast with Seattle, where activists are hamstringing the Woodland Park Zoo’s plans to build a 700-car parking garage to accommodate current visitors. A planned expansion of Seattle’s aquarium — also a tourist attraction — is years away, pending rebuilding of the waterfront viaduct freeway.

    Vancouver Aquarium plans a 50 percent expansion that would include adding more whales or dolphins. Construction is supposed to start next spring and would cost 32 trees.

  • Concerns about trade policy under Democrats

    The new Democratic majority in Congress is bad news for trade between the U.S. and Canada, according to some analysts cited by Canada’s National Post.

    Conventional wisdom says Republicans are more supportive of free trade. But the Bush Administration’s signature policies include a package of trade-distorting subsidies to U.S. farmers and tariffs on steel and lumber, each intended to protect a segment of U.S. industry at the expense of others, not to mention costing consumers. Democrats tend to be sensitive to organized labor and some decry trade as bad for U.S. workers. The key is to remind politicians of all stripes that there’s nothing inherently wrong with trade — just poor trade policy.

  • Shrinking newspapers are still good business

    Cascadia’s newspapers are reporting sharp drops in circulation and the Seattle papers claim they can’t survive unless one disappears. But maybe the newspaper business isn’t so bad after all.

    The circulation of Vancouver’s two dailies fell to below the level they had in 1957, when they began a profit-sharing partnership, despite at least tripling of the area’s population, according to The Tyee. But the company that owns both papers — and TV stations and newspapers in Victoria and across the Canadian west — generates profit margins of more than 30 percent on some of its papers.

    Meanwhile circulation at The Seattle Times and Post-Intelligencer is dropping, partly by choice. The idea is to put the papers in front of readers who advertisers want to reach; once statewide papers are now mostly found in three counties. Still, each claims it can’t go on with the competition. On Monday an independent group asked a court to let it in on negotiations that would probably close one of the papers.