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A Case Study for the Inland Northwest Economic Adjustment Strategy

Background

The City of Stevenson, located in southwest Washington State, serves as the county seat of Skamania County. The Columbia River forms the city and county's southern border and the Cascade Mountains neatly divide the county into two very diverse halves. Clark and Cowlitz Counties bound the county on the west and Klickitat and Yakima counties form the eastern border.

The major route is State Highway 14, which connects Stevenson to the Vancouver metropolitan area. Alternatively, there is easy access to the Interstate 84 freeway just across the Columbia River in Oregon. Burlington Northern Santa Fe Railroad serves the county's freight needs.

Seventy-eight percent of the county land base (which totals 1,672 sq. miles) is under Gifford Pinchot National Forest ownership, including the Mount St. Helens National Volcanic Monument. The majority of private land lies along the southern portion of the county, with over 50% of this area lying within the Columbia River Gorge National Scenic Area's jurisdiction. There are only two incorporated cities within the county - Stevenson and North Bonneville.

This area played a key role in the early exploration and settling of the Pacific Northwest due to its location along the Columbia River where the river cuts through the Cascade Mountains. Both the area's Indians and early settlers profited from the portage facilities serving the Lower Cascade Rapids, collecting healthy tolls from river travelers. Later, entrepreneurs benefited from the sale of wood to fuel hungry steamboats and steam-driven trains carrying anxious miners to the Idaho gold fields. Residents in the 20th century built canneries and fishwheels along the river's banks to sell millions of pounds of salmon to the world's tables. At the end of World War II, the logging industry exploded as it cut timber from private and public forests to provide lumber to feed the suburban building boom.

Historically, Skamania County's economy has been dependent on natural resources, and the local economy has fluctuated wildly to adapt to market conditions. Local businesses were forced to develop a certain resilience to deal with these ups and downs.

Transition

All of this changed in the late 1980s. The economies of Skamania County had always depended on the area's rich natural resource base. Nearly all of this resource base (97%) is under federal and state ownership. Beginning in the 1980s, major changes in federal and state natural resource management policies radically altered access to these resources.

• In 1986 the Columbia River National Scenic Act placed large portions of the remaining private ownership along the fringe of the Columbia River under strict federally-mandated land use regulations. The Act limited land use practices and altered economic opportunities by confining economic development to Skamania County's one city (Stevenson) and a handful of urban areas.
• Harvest restrictions on federally owned timber land crippled the area's once booming forest products economy, resulting in mill closures, business failures and a shrinkage in employment opportunities.
• The Endangered Species Act further hampered logging activities on State and private forestlands and challenged other economic uses of lands along rich fish-bearing streams and rivers.

The economic impact of these natural resource policy decisions was immediate.

Fortunately, the County had access to a group of active local leaders, many of them professional resource managers. Working closely in State and Federal natural resource management positions, they foresaw the stream of policy changes and economic implications of these management policies.

Together with other local business and local government leadership, the County formed a community team, called "Thrive," to address the need for change not only in the economic sector, but also in schools, government, and social institutions. The group identified a series of actions items, and fostered a sense of community cooperation that has molded subsequent activities.

The first step was to form the Skamania County Economic Development Council. The Council was charged with coordinating economic development efforts and assisting the Port in its industrial development strategies. The second step was to build and strengthen the local Chamber of Commerce, and focus its attention on the tourism sector.

Under this combined leadership, and following the mission statements and goals adopted by the Thrive Committee, Skamania County began to address its needs.

Tourism

Seizing on opportunities created by its natural setting, the community first focused on developing the tourism economy. Local studies had identified that a destination resort and conference center would successfully stimulate the local tourism trade. Together, the County, City and private business formed unique public-private partnerships that built Skamania Lodge and Conference Center, which opened its doors in 1993.

Today, employing more than 320 people, it is the largest private employer in the county and has contributed to some resurgence in the local retail economy. A second resort in Skamania County's other city, North Bonneville, is nearing completion, and several smaller inns have opened their doors throughout the area. Each facility has had to target a particular sector in the tourism market and develop its own unique market strategy.

Under Chamber leadership, the tourism sector continues to expand and diversify. The abundant natural resources of Skamania County continue to provide the backbone for the area's tourism appeal. The community has taken advantage of the growing urban populations in Portland/Vancouver and uses the National Scenic Area Act in its marketing campaigns. One unexpected benefit of the burgeoning tourism trade has been that a number of young entrepreneurs on recreational visits have chosen to return to open local businesses.

Timber

Despite the losses in timber resource availability and timber jobs, the wood products industry remains a viable economic sector. The single remaining operating mill continues to invest in new technology, responding to both a changing market place and changing raw material supply.

Currently the mill owners are planning on putting co-generation plants on line and developing improved means of using a smaller log. The private owner has partnered with public entities to ensure deep-water barge access for imported logs, to improve road access to the mill, and increase employment opportunities.

Politically, City and County leadership is promoting the need to protect the health of forests and develop sustainable logging practices. The leadership in the community has recognized the need to educate the public about the importance of sustained yields and managing forests for multiple benefits. The community was unique in welcoming rather than turning away an application to construct a canopy crane research project within the County. Currently, community leadership icontinuing to seek other natural resource based research opportunities for the area.

Light Industrial Diversification

The Skamania County Port District has taken the lead in diversifying the light industrial base. Critical to its progress is the need to acquire additional land in an area where private land is at a premium. A second challenge has been to assure that adequate infrastructure will be available.

The Port targets small companies with five to fifty employees that primarily serve the Portland/Vancouver metropolitan area's industries. Business people who are attracted to the area for its "quality of life" features own many of the new start-ups. This has reinforced the need to maintain a balanced, community-based approach to economic diversification.

Public partnerships are forming to address the need to upgrade infrastructure, such as access to fiber optic service. Again, the community is selling its setting to attract entrepreneurs interested in high tech developments. At least two business owners have opened internet services locally that are now competing in the Portland/Vancouver market.

The Future

This rural community continues to address its vision for its future. The community continues to attract new residents, with 50% of the population having lived in the area less than fifteen years. Every effort is being made to encourage the new residents to participate in the community. The transition to a bedroom community in portions of the region will need to be counterbalanced with the diversification of the community's economic base. Local residents' energies and skills will be a strong asset. And the community will continue to explore better ways to manage its natural resource base for a sustainable future.

Project Coordination Team:
Lorraine Roach, The Hingston Roach Group, Inc., (208) 983-2175
Dick Gardner, Bootstrap Solutions, (208) 859-8878
Jim Birdsall, James A. Birdsall & Associates, (208) 859-0730
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