Port inks historic land deal

[Chief]

http://columbian.com/business/businessNews/02022007news99979.cfm

Friday, February 02, 2007
By JONATHAN NELSON, Columbian Staff Writer

The Port of Vancouver intends to resurrect two waterfront industrial sites in a $48.2 million deal that promises to infuse the local economy with thousands of jobs and millions of dollars.

Port officials announced Friday they have signed an agreement to buy 218 acres from Alcoa Inc. and Evergreen Aluminum LLC. The two waterfront properties are adjacent to the port's westward expansion project called Columbia Gateway.

The purchase is being financed by a controversial tax increase port commissioners approved in 2006, but deferred collection for a year. The increase would go into effect in 2008 and raise the port district tax rate from 33.7 cents per $1,000 of assessed value to approximately 79 cents in the first year. That means for a $250,000 home the total tax paid to the port would be $197.50 in 2008.

[Chief]

I've done a lot of reading on this story in the Columbian and the Oregonian this morning, and I will say categorically that I like this deal.

As much as I dislike it when my Property Taxes increase, I recognize that there are legitimate reasons to pay for things that are in the Public Interest, with my tax dollars. I believe that this is one of those very legitimate reasons.

We are talking about some of the most potentially valuable industrial property on the West Coast. It is zoned Heavy Industrial, will be pretty much cleared for action by the Port, and is serviced by it's own deep-water pier on the Columbia River. When this property is finally ready for some new Industrial Tenant, it is going to be worth Billions to our economy here over th next several Decades.

I am still open to additional informantion and will be paying very close attention to what goes on down there, but my gut feeling is that this is a deal we ought to feel pretty darned good about. The Port is about to launch an enormous expansion, and we Taxpayers and Voters really need to support the biggest and most powerful economic engine that our economy has.

I say "Well Done"!

Stout Hearts!

Chief

[Chief]

http://www.oregonlive.com/business/oregonian/index.ssf?/base/business/1170473157242590.xml&coll=7

Development - The Port would pay $48 million in a deal that would raise taxes but could create 4,700 jobs
Saturday, February 03, 2007
ALLAN BRETTMAN

VANCOUVER -- The Port of Vancouver has signed letters of intent to purchase the former Vanalco aluminum smelter and its 218-acre site on the Columbia River for $48.25 million, Port officials announced Friday.

A property tax increase will be needed to pay for the purchase. The levy would be applied within the Port's district, which roughly covers the Vancouver city limits.

The Port is expected to develop the property west of downtown Vancouver for industrial tenants, perhaps as soon as the end of this year. A Port consultant said the site could generate nearly 4,700 jobs with an annual payroll of $225 million.

"This property is one of the last waterfront industrial sites of its size available on the West Coast," said Larry Paulson, Port executive director.

As many as 100 acres are close enough to the river to be used for marine shipping and receiving, Paulson said. The other acreage "would likely be used for rail and industrial opportunities," he said. "We need that blend of work opportunities and the good jobs they bring."

The Port will pay $24.5 million to Evergreen Aluminum, which owns the smelter and 111 acres. And it will pay Alcoa Inc. $23.75 million for the remaining 107 acres.

Evergreen is owned by Glencore International, a Switzerland-based trading and supply corporation that bought the Vanalco plant in 2002 for $25.2 million. The plant never produced aluminum after the purchase.

Alcoa was the smelter's first owner, starting the plant in 1940 and supplying aluminum for military needs during World War II and the Korean War. The Pittsburgh-based corporation sold the smelter to Vanalco, owned by private investors, in 1986 but kept other acreage at the site.

Port commissioners will be asked Monday to more than double the Port property tax to accommodate the purchase. The tax increase would last six years and could be challenged through a voter referendum.

The six-year Industrial Development District levy would be 45 cents per $1,000 of assessed value. For a $250,000 home, that would be nearly $113 a year. The existing levy in the Port district is 33.7 cents per $1,000 -- about $84 a year.

**SCHNIPP**

Please go read the entire article. There is a lot of information in there, and you need all of it to understand the scope of what this deal really means to Vancouver...

[Chief]

And in an effort to be fair and balanced, mine is not the only view on this....

recieved via e-mail...

DON'T BE TAXED OUT OF YOUR HOMES

Letters to the Editors,

Thrills, chills and heartbeats, It appears that just about every government agency is climbing on board "The Lets Pick the Taxpayers Pockets Bandwagon". Now we have the Port of Vancouver scheming to raise your property taxes "WITHOUT A VOTE OF THE PEOPLE", so they can buy a $42.8 Million Dollars piece of property to enlarge their empire.

They are probably afraid some private entrepreneur might just buy it before they do. To add insult to injury they decided, without consulting the taxpayers to double what they need.

Even if this was a good deal, it isn't, why are their pickpockets raising $78 million dollars when the cost of the property is only $42 mi8llion. But then, they probably need the extra money to raise the salaries and benefits of those who will now have increased responsibilities for their much larger empire. .

Unless you want to be taxed out of your home, you need to "KICK, SCREAM, and HOLLER", all the way to the Democrat Legislators and tell them to stop passing legislation that allows the elected, appointed and anointed to increases taxes "Without a vote of the People".

WE DO NOT YET LIVE IN A DICTATORSHIP, DO WE?


L. M. Patella
CDR USN (ret)
2714 NE 42nd Circle
Vancouver, WA 98663
360 750 0209

[Chief]

Recieved via e-mail, the News release from the Port of Vancouver.

February 2, 2007

Port of Vancouver Purchase Returns Jobs to Former Smelter Site

Vancouver, Wash. – The Port of Vancouver will bring life, and jobs, back to a site that housed one of Clark County’s major industries for over six decades. The port has signed letters of intent with Alcoa, Inc. and Evergreen Aluminum LLC to purchase the former aluminum smelter and aluminum fabrication facility property for $48.25 million.

Use of the site for a combination of marine and industrial operations will generate 4,673 jobs with an annual payroll of $225 million, according to a study by John Martin & Associates, national experts on maritime and industrial economics. Another 2,000 construction jobs will be created by the development resulting in $70 million in wages and salaries and total economic activity of $227 million.

“This property is one of the last waterfront industrial sites of its size available on the West Coast,” said Larry Paulson, Port Executive Director. “It will allow the port to capitalize on exploding growth in international trade to generate economic value and nearly 5,000 new jobs for our community.”

Alcoa, Inc. and Evergreen Aluminum LLC are the owners of the 218-acre site located on the Columbia River between current port operations and its future development at Columbia Gateway.

Evergreen Aluminum owns the smelter which includes 111 acres. The port will pay $24.5 million for that portion of the site and $23.75 million for the remaining acreage and dock facility that are owned by Alcoa.

Opened in 1940 by Alcoa, the facility supplied aluminum for military needs during WWII and the Korean conflict, and later for international and domestic markets, such as the aerospace and electrical equipment industries. The facility expanded to include fabrication and extrusion operations and employed some 1,500 workers in the 1950s. The facility employed around 630 workers when it was curtailed in 1999 due to skyrocketing electricity prices.

JOBS & REVENUE FORECASTED

The property is suited both for marine cargo operations and industrial development, Paulson said. Exact use will be determined by several factors, including the number of jobs generated by a particular operation and the stability and average wage of those jobs; revenue produced by the activity, and environmental impacts.

The Martin study projects those operations will generate annual business revenues of $1.3 billion and $24 million in state and local taxes to help fund public services.

PROPERTY NEEDED FOR GROWTH

Acquisition of this site will enable the port to take advantage of growth in international trade, particularly in the Pacific Rim region, and to increase the limited supply of industrial-zoned land in Clark County.

A recently-completed trade capacity study forecasts a 67% increase in cargo to Portland-Vancouver ports by 2025. In addition, the port’s long-term contracts with eight shippers and record tonnage growth in multiple commodities could fill existing dock and storage space within a couple years.

Breakbulk and project cargo volumes at the port have increased 128% over the past five years and wind energy project cargo will grow 300% in 2007 alone. The port’s non-marine industrial facilities have been near 100% capacity in recent years. Available industrial land in Clark County is less than current demand, particularly sites that are ready for development.

In 2005, port activities added $1.6 billion in economic value to the region and resulted in 15,580 jobs and $82 million in tax revenues for the community. All of those figures can be expected to grow with port expansion.

PORT OWNERSHIP BENEFITS OUR ECONOMY AND SUSTAINABLE DEVELOPMENT

The port will work with Alcoa and Evergreen to ensure that these long-term industrial lands are properly remediated and put back into productive use. By reusing these facilities, the Port will be able to take advantage of the existing infrastructure and allow the facilities to continue to be a critical aspect of the region's economic base.

As a condition of sale, the sellers, who have been working proactively with the Department of Ecology to perform environmental cleanup since the early 1990s, will complete environmental programs that will allow continued industrial use of the property.

FUNDING OPTIONS CONSIDERED

Port commissioners will consider funding options for the property purchase at a special meeting on Monday, February 5 at 4 p.m., including implementation of a six-year Industrial Development District levy. In order to implement an IDD levy in 2008, the commission must file a Notice of Intent to Levy by February 13, 2007.

If implemented, the tax levied on a home currently valued at $250,000 would be around $112 per year. The six-year levy would generate around $78 million total. The levy cannot be renewed. Property tax exemption programs for senior citizens with limited incomes will apply.

For additional information, see www.PortVanUSA.com.

**SCHNIP**

Many Thanks to alert Clarkblog reader Larry Martin for sending me this a few minutes ago...

;D

[Translator]

OK... so why isn't the Port leasing this property...

And if they're buying it... and it's supposed to bring in all these jobs (presumably with a rebuild) then why wouldn't the Port then sell said property to new owner?

And if there is going to be, as it would appear, a new property owner in a relatively short term, then why do we need a tax increase to cover the entire amount of the purchase? And once this land is either resold or leased, shouldn't either of those options more then cover the cost of the purchase?

And if those payments (for either a resale or lease) cover all the costs, as they should, will the Port then REDUCE their "increased taxes to pay for the purchase?"

Fat chance.

So, on one hand, it is a good thing to turn this dirt into a job and revenue producer.

But on the other hand, the underlying basis for the tax increase really doesn't have nearly as much to do with buying this land as it does to jack up our taxes... taxes increases the Port maximizes every year; tax increases they implement without asking, and tax increases they will never, ever reduce... even when our money is no longer needed for this land purchase.

Because you can BET they'll find a way to spend the money, just like the Hilton downtown; which also, come to think of it, budgets in the yearly $1.8 million tax subsidy they get from the grateful, unasked taxpayers of Clark County because there's absolutely no incentive for the Hilton to engage in fiscal responsibility when they know Cesar Royce will be there, checkbook in hand, to keep his hotel open.