Opportunity Zones are a community development program established by Congress in 2017 to encourage long-term investments in low-income urban and rural communities. Private investment vehicles that place 90% or more of their funds into an Opportunity Zone can earn tax relief on the capital gains generated through those investments. Tax benefits increase the longer investments are in place.
An Opportunity Zone is a community nominated by the state and certified by the Treasury Department as qualifying for this program. See which communities are certified by looking at this interactive map.
For specific information on Opportunity Zones in Idaho, click here.
For specific information on Opportunity Zones in Washington, click here.
First appeared on Washington Department of Commerce website on Dec. 17, 2019.
OLYMPIA, WA – Expanding on the success of its original economic gardening program, the Washington Department of Commerce has developed Thrive!, a new program to help second-stage companies increase revenues and position for growth.
Based on the Edward Lowe Foundation’s System for Integrated Growth (SiG) framework, Thrive! connects chief executive officers to subject matter experts who provide them with data, analytics, best practices and strategies that are typically only available to larger corporations. This actionable information can be used to overcome roadblocks related to human resources, finances, operations, marketing, sales, international trade and other business issues.
“Since its introduction three years ago, Commerce’s second-stage program has helped 39 businesses across the state find innovative ways to increase growth and revenue,” said Lisa Brown, Commerce director. “Where the original program focused solely on external issues, Thrive! examines internal and external roadblocks to growth, since one can often affect the other.”
Research shows that historically, companies that have completed a second-stage program like Thrive! experience a 15% to 30% increase in revenue.
The ideal candidate for Thrive! is a company that’s been in operation in Washington for at least two years, has between six and 99 employees, achieved $1 to $25 million in annual revenue and has demonstrated an appetite and aptitude to handle additional growth.
To help offset the $4,275 cost of the program, Commerce contributes $1,275 to pay for the initial needs assessment call with the team leader as well as a strengths-weaknesses-opportunities-threats (SWOT) analysis call with a team of experts assigned to address identified business issues. Based on these calls and the resulting work plan, the CEO can move into the research phase of Thrive!, which entails up to 33 hours of professional research time. Thrive! is conducted entirely by phone and a secure online portal created especially for each participating company. Thrive! requires approximately eight to 12 hours of the CEO’s time over the course of four to eight weeks.
More information about Thrive! as well as a link to the application for the program is available at http://startup.choosewashingtonstate.com/programs/thrive/. Contact Susan Nielsen at [email protected] for eastern Washington Thrive! opportunities.
The following projects, initiatives, and economic developments are making news in eastern Washington and northern Idaho. This release is distributed by the Inland Northwest Economic Alliance on behalf of its regional partners.
COEUR D’ALENE, Idaho — StanCraft Boat Co. is expanding from manufacturing watercraft to offering aviation services with the addition of a $15 million StanCraft Jet Center at Coeur d’Alene Airport-Pappy Boyington Field. Construction on the new 85,000-square-foot FBO began in August east of Empire Aerospace, and the project is expected to be completed by May 2020. Coeur d’Alene-based Eric Hedlund Design is the architecture firm that designed the structure, and Hayden-based Young Construction Group of Idaho Inc. is the contractor. The 40,000-square-foot Southfield Aviation building will be used as a maintenance facility after the new jet center is built. In addition to refitting jet interiors, StanCraft Jet Center will offer jet refueling, conference rooms, waiting and pilot areas, and a tenant improvement space for offices. Contact Robb Bloem, StanCraft President, for more information.
Dauntless Air, an aerial firefighting company, relocated its aircraft maintenance operations to the Coeur d’Alene airport this year. Dauntless protects people, land and property from the devastation of wildfires through advanced aerial fire suppression tactics in Minnesota, Washington, Alaska, Idaho, North Carolina, California and Oregon. Learn more about the company at www.Dauntlessair.com or contact Brett L’Esperance, Dauntless CEO.
PULLMAN, WA — Washington State University’s Cosmic Crisp apple will hit the fruit stands on December 1, a project over 20 years in the making. Cosmic Crisp was developed specifically for Washington’s climate and growing conditions. WSU researchers combined the disease-resistant Enterprise with the Honeycrisp, known for its crispness, juicy sweetness, and hint of tartness. There are 12 million trees planted in the state of Washington and this year 450,000 boxes of Cosmic Crisp apples will be available. Washington apple growers will have exclusive rights to the Cosmic Crisp for 10 years. Washington produces 65-75 percent of the nation’s apples, yet this is the first variety that originated from the state. Contact Proprietary Variety Management for more information.
HAYDEN, Idaho — Roller coaster manufacturer, Rocky Mountain Construction (RMC), continues its Six Flags success with the innovative Jersey Devil Coaster at Six Flags Great Adventure in Jackson, New Jersey. Known as a single-rail coaster, riders in one-passenger cars will straddle a 15.5-inch-wide steel, monorail track and navigate a twisted course that will include multiple inversions, climbing 130 feet and hitting a top speed of 58 mph along 3.000 feet of monorail track. RMC has grown to 115 full-time employees and 5 manufacturing facilities, totaling more than 75,000 square feet. See USA Today’s article for more.
DAVENPORT, WA – Washington Department of Commerce, USDA, and Washington State University Medical School hosted a daylong workshop with 100 community leaders and residents from Eastern Washington to address the broadband law approved this year by Washington state lawmakers. A new statewide broadband office will approve and distribute grant and loan funds to local governments, tribes, public, private and nonprofit entities working together to expand broadband. The program has $21.5 million available, including $14.5 million for loans and $7 million for grants. The state will prioritize funding to public-private partnerships, with a focus on underserved areas in the state. Contact Margie at Lincoln County EDC for more information.
MARIES, Idaho — City officials and housing developers, Troy Lozano, are projecting construction of new homes in Ragan’s Addition to begin in early 2020. Lozano purchased 21 lots in the addition and plans to partner with Julian Construction to build single family homes. Updates can be found at greystonehill.com.
OTHELLO, WA — McCain Foods broke ground on a 170,000-square-foot expansion, a project that will cost $300 million and is scheduled for competition in 2021. The expansion to the frozen potato products line is estimated to bring about 180 new jobs to Othello and is expected to be the biggest manufacturer of frozen potato products in the world. Dale McCarthy, McCain Foods, said Othello’s proximity to West Coast shipping makes it a crucial location for the company. “Othello is very strategic for us.” Adams County officials are working with McCain Foods and the state to develop a recruitment process and support. They plan to conduct a countywide housing needs assessment to confirm housing needs and development solutions. Email Adams County Economic Development Council for more info.
MOSCOW, Idaho — Northwest River Supplies (NRS) began operations from its new facility on South Blaine Street on November 5. The newly constructed 155,000-square-foot building includes a warehouse, customer service center, corporate offices and a 3,500-square-foot NRS flagship retail store. The $13.5 million project received a tax break from Latah County that exempts 75 percent of the increase in the site’s value from property taxes for five years, ending in 2023. Read more here.
PULLMAN and COLFAX, Wash. — Two Inland Northwest businesses were recognized through the Washington Secretary of State’s Corporations for Communities Award Program. Schweitzer Engineering Laboratories, of Pullman, was recognized for donating and raising funds for local charities and providing money for employees to donate to the charity of their choice. Bunyard Automotive, of Colfax, was honored for repairing vehicles at little to no cost for families in need. Both businesses were awarded the National Association of Secretaries of State Medallion for their efforts in their communities. The full press release is here.
OSBURN, Idaho — The city dedicated the newly completed Shoshone Fire District #1 facility, which was awarded a $500,000.00 block grant earlier this year. The new 10,000-square-foot facility is a significant fire, training, and emergency services upgrade for the region. Contact Silver Valley EDC for more information.
LEWISTON, Idaho — With a start-up $839,809 grant from the National Science Foundation, the Northwest Intermountain Manufacturing (NIMA) Association has created a pilot project to train high school students in fabrication and machining. In partnership with Lewis-Clark State College, the Clearwater Economic Development Association, the University of Idaho and 16 school districts, the program gives students a solid skill set and educational background in manufacturing so they can be ready to start work right after high school for local companies. The first group of students will complete the program in 2020. See Idaho Department of Labor article here.
LIBERTY LAKE, WA — In response to a gap in the city’s flex office market, Liberty Lake Coworking LLC will open Jan. 2 at 23505 E. Appleway. The 4,600-square-foot space will have 11 private offices, six semi-private spaces, and open table space. The space will also feature booths for private calls, two semi-private meeting booths, a podcast and media room, access to high-speed fiber internet, and free parking. More details can be found here.
POST FALLS, Idaho — Construction on Idaho’s fourth state veterans’ home is expected to start next year. The 82,000 square foot project is to be built in Riverbend Commerce Park in Post Falls and will have 64 beds. The home will be built on 7.3 acres donated by the Jacklin Land Co. in Riverbend Commerce Park on Post Falls’ west side. It is adjacent to BioPol Laboratory and Buck Knives. See the full article here.
SPOKANE, WA — The Toolbox manufacturing incubator expanded to 17,000 square feet in a recent move to Logan Neighborhood. Anchored in the space is Vestis, which manufactures specially designed commercial awnings and canopies. The Toolbox continues to serve as collaborative space where established companies and business mentors share expertise, ideas, tools, and equipment with manufacturing startup and entrepreneurs. The Toolbox is overseen by nonprofit Spokane Create. Read full article here.
On December 4, the Edward Lowe Foundation and Washington Department of Commerce will lead businesses through the basics of Thrive!, a new state program that helps second-stages businesses to increase revenue, streamline operations, and expand into new markets. Contact Susan Joseph Nielsen for more information about Thrive!
POST FALLS, Idaho— Northwest Specialty Hospital completed a $4.5 million addition to include an Endoscopy Center and two additional operating rooms. The 15,000-square-foot addition brings to eight the number of operating rooms for patient surgery. The Endoscopy Center, a 8,650-square-foot addition to the hospital, features two procedure rooms, one exam room and eight preoperative and post-anesthesia care unit bays. See company news release for more information.
Inland Northwest Economic Alliance (INEA) is a consortium of fourteen economic development agencies representing fifteen counties in the North Idaho/Eastern Washington region. The collaborative effort is aimed at building economic growth through enhancing the brand recognition of the Inland Northwest and its communities and showcasing its business value.
Lisa Brown, Washington Department of Commerce director, and Tom Kealey, Idaho Department of Commerce director, spoke Friday about the economies in their respective states during an Inland Northwest Partners conference at Banyan’s on the Ridge in Pullman.
“I see broadband as really a significant challenge to get right,” Brown said.
Part of the challenge, she said, is Federal Communications Commission maps showing the number of broadband providers available and overall coverage provided in the region is not adequate.
“We’ve got to understand what we have and what we don’t have in order to appropriately direct investment into that middle mile and last mile,” she said. “That’s always the most challenging piece of deploying communications or telecommunications technology.”
Washington is trying to help rural areas with this problem by establishing a statewide broadband office that would coordinate grants to governments and tribes for broadband infrastructure.
Washington 9th District Rep. Mary Dye, R-Pomeroy, told the Daily News in April that she and her colleagues in the House supported the legislation because it will increase competition in the internet service provider marketplace and bring better service to rural Washington.
In Idaho, Gov. Brad Little signed an executive order in May establishing the Idaho Broadband Task Force, Kealey said.
The 40-member task force this fall will bring to the governor recommendations on ways the state can improve connectivity and speeds across Idaho.
The task force will try to map existing services and gaps in broadband infrastructure, which Kealey said will paint a picture for what resources are needed in rural and urban areas.
“We want to map what we have, be able to measure what we have in terms of access as well as speeds and features and services and options,” he said.
Brown pitched another idea that may bring people and commerce to eastern Washington. In light of Microsoft and other corporations last year offering funding to build a high-speed railway from Vancouver, British Columbia, to Portland, Brown said she would like to see a similar railway that connects western Washington with eastern Washington.
“How fantastic that would be to connect our communities, to connect our students and families, and also as an opportunity for people to be able to leave the megalopolis and see what the options are in other parts of the state,” Brown said.
Brown and Kealey highlighted some positives in Washington and Idaho economies.
“If we were a country, we’d be up there with Sweden or Belgium right now,” he said.
Kealey said Idaho is near the top of the rankings in several economic categories including first in travel dollars, third in the number of people moving to the state and fourth in job growth.
Washington State grant helps international food processor expand, add jobs in Othello
April 15, 2019
OLYMPIA, WA – The Washington Department of Commerce provided a $100,000 grant to the Adams County Development Council from Gov. Inslee’s Economic Development Strategic Reserve Fund to support the expansion of SVZ-USA Washington Inc., the only North American subsidiary of Netherlands-based specialty food processor SVZ International B.V.
The company plans to invest $4.8 million to increase capacity at its Othello facility opened in 2000, adding 17 new manufacturing jobs to its 90 existing employees.
“SVZ is an important part of the food processing cluster in Othello, and we are pleased to help Adams County Development Council partner with the company to make infrastructure improvements that will strengthen the entire community and prepare for future growth,” said Commerce Director Lisa Brown.
“We are excited to have SVZ-USA moving forward with a $4.8 million expansion project that will bring new jobs to the city of Othello and Adams County,” said Adams County Economic Development Director Stephen McFadden.
The grant will help offset the cost of sewer system improvements required by the city of Othello for the expansion. This will also extend the new sewer line well beyond SVZ’s building, facilitating future municipal connections and growth.
SVZ-USA specializes in processing fruit and vegetable juices, concentrates and purees for food and beverage manufacturers around the world. The company is recognized globally for sustainability and agronomy management best practices.
“The company is actively involved in our community in multiple ways,” McFadden added. “SVZ employees volunteer with several community organizations, and the company plays an active role in the Othello Career Showcase where we connect students in grades 8 through 12 with local employers to introduce them to the numerous career paths that exist within their hometown.”
“Building and growing a great business requires equally great relationships. We are very pleased with the relationship we have with The State of Washington, Adams County, and the City of Othello. The grant funding provided facilitates our expansion, and confirms the business friendly and supportive role of government to our international leadership,” said David E. Stewart, president, SVZ-USA Washington.
“In addition to direct employment increases, as our sourcing of raw materials is predominantly local, we look forward to expanding our local sourcing as we partner with farmers for our agro supply needs, increasing by about 30 million pounds with this expansion,’ he added. “Our business success requires long-term relationships with customers, farmers, employees, and the communities in which we operate.”
Lisa J. Brown, Ph.D., was appointed Commerce Director by Washington Gov. Inslee and began serving the agency in February of 2019. Prior to serving as Commerce director, Brown served as chancellor of Washington State University, where she led the health science campus in Spokane.
Brown served in the Washington State Legislature from 1996 – 2013 in the Senate where she was majority leader and chaired the Rules Committee, Ways and Means Committee, and Energy, Technology and Telecommunications Committee. She served in the state House of Representatives from 1993 – 1996, where she was minority whip and minority floor leader.
She has worked extensively on economic development in Eastern Washington and on gender equity.
Brown earned her bachelor’s degree in economics at the University of Illinois and her master’s and doctoral degrees in economics from the University of Colorado in Boulder.
Tom Kealey is Idaho Gov. Brad Little’s appointment to serve as Director of the Department of Commerce, and began his service in January of 2019. Kealey is co-owner of restaurant Chicago Connection and a former Morrison-Knudsen executive, and served on the Idaho Endowment Fund Investment Board under Governor Dirk Kempthorne.
A lifelong Republican and retired CPA, Kealey believes in protecting the Idaho Constitution, taxpayers money and credit rating.
Kealey earned his accounting and finance degree from the University of Washington and an MBA in Strategic Planning and Marketing from Harvard Business School.