Cascadia Report

These Cascadia companies make case for core values

For businesses struggling to overcome the pandemic, maybe it's time to focus on core values.

Consider REI Co-op, PCC Community Markets, and MEC — three iconic community-based Cascadia businesses whose survival may depend on returning to practices closer to their roots.

Seattle’s REI Co-op recently suffered self-inflicted wounds. PCC Community Markets undermined its success with tone-deaf leadership. MEC is trying to reset under new ownership. They previously put too much emphasis on growth and now show varying signs of potential.

These are member-owned cooperatives — a popular form of corporate governance in Cascadia — so benefit from extremely loyal customers. As icons they matter more than most generic retailers.

Missing the outdoor surge

REI, founded by Seattle climbers in 1938, boomed over the last 40 years as it broadened into clothes and lifestyle equipment. Critics always say it has lost its way, yet business doubled in the 2010s to about about $3 billion annually. Still, something seemed to change after it hired a Coach executive as CEO in 2013. Stores increasing were located in strip malls, and it closed its climbing-forward store in Redmond next to trails and transit, in favor of a traditional box near freeways.

In mid 2019 a longtime retail-finance executive became CEO and shored up the books. In 2020 REI reported zero profit, but only after an $80 million gain from selling its headquarters properties, including selling a new purpose-built office complex to Facebook. The company is debt-free and has plenty of credit. Yet it sales fell as it cut inventory — it performed worse than peers, despite the pandemic-era boom in outdoor activities.

REI has a history of blaming poor business decisions on external factors rather than its own business decisions. For example, it blamed an ill-fated foray into Japan 20 years ago on the poor economy rather than its execution. Moves in 2021 to focus on products and initiatives on carbon-reduction and conservation seem aimed at shoring up support, though lack of inventory remains a challenge.

Tone-deaf grocery leadership

PCC was started by 15 Seattle families in 1953, long before organic foods could be found in major stores. As competition increased it gradually went upscale, managing to keep loyalists with ever-stricter food standards while adding locations and a fancier shopping experience. Yet the largest community-owned grocery in U.S. fueled criticism that growth was its main goal, hiring one CEO from Starbucks and another from Kroger. 

This grousing became headline news when the CEO publicly campaigned against COVID compensation for workers in Seattle, despite the company seeing a 26% increase in both net income and sales, to $2.6 million and $383 million, respectively during the year. A backlash among members led to two longtime store employees being elected to the board over management's choices, with pledges to rethink the company's practices. The CEO quit. In stores, there appears to be more employee turnover and concern about the organization's direction.

Co-op gone wrong

MEC, started in Vancouver in 1971 as Mountain Equipment Co-op, stretched the support of its loyal customers by pursing branding and growth like any other retailer. Management strayed from the cooperative ethos and still growth stalled. In 2019 MEC reported a loss of $16 million on sales of $462 million. In 2020 losses grew to nearly $23 million while sales stagnated at $463 million. By Sept. 2020 the board had sold out: a California private equity firm paid $150 million and converted MEC into a private company.

The buyers gained a trove of consumer data that alone makes the deal worthwhile, though they pledge to keep stores and employees. This weekend the Victoria store was packed and seems fully stocked, but it's unclear if that traffic translates into sales. Will MEC succeed as a regular company or will it need to return to its roots? The direction will say a lot about the viability of the co-op model.

Avoiding a Climate Disaster in Cascadia

Triple-digit temperatures along the Salish Sea this summer should make it clear that the climate crisis is real. 

Cascadia is a "green" region well known for generations of feel-good environmentalism. But now it needs policies to help solve the climate crisis by incentivizing decarbonization of our economy, a shift that is in our self-interest and a moral imperative.

I'll admit that I previously considered climate an ambiguous, distant problem. I've made the case that Seattle and Cascadia — among the richest places in the world — should be a model for how to develop a sustainable, equitable economy. But the problem is actually more urgent, and working for solutions could be a significant boon to our economy. 

How does the crisis concretely affect us? A record heatwave killed many vulnerable residents and even erased a British Columbia town. Mt. Rainier's snowcap melted more than ever. Shellfish were cooked in water along the coast. Heat and drought are altering our food supply. Wildfires are so bad they're changing the weather.

In his latest book, How to Avoid a Climate Disaster, Bill Gates provides a surprisingly clear overview of the global challenge and argues that we need to get to net zero carbon use globally by 2050. New technology will be developed to do this, but the "green premium," or extra cost of low-carbon options, needs to shrink for the technology to be adopted. A summary of the book is available here. (As a technologist he has blind spots; see this review, for example.)

What to do about it

One thing B.C., Washington, and Oregon should do is aggressively price carbon to make clean alternatives viable. B.C. started in 2008 but Oregon has failed to follow. This year Washington finally passed a plan, though it was linked to highway expansion.

Cities should create density so there's less need to drive (vehicles are the biggest culprit of greenhouse gas emissions in Seattle), electrify their fleets, and improve building codes. Voters should ask every candidate exactly what they will do to take dramatic action on this issue.

Companies also should lead on this issue and push government to create better policy. Many companies incentivize transit and biking. But Microsoft is currently building an underground parking garage big enough to hold 8,000 school buses — the exact opposite of what Bill Gates calls for in his book. Rather than greenwashing, Microsoft should get the city of Redmond to relax parking requirements and encourage vastly more housing near its offices.

Longer term, the technology to help the world decarbonize needs to be developed and honed. If Cascadia sets the right incentives, that work could happen here. The world will add the equivalent of one New York City's worth of built environment every month through 2060, Gates says, so there's massive demand for new clean technology.

The next mayor of Seattle should meet with Gates and create a concrete plan of how the city can encourage more innovate clean technology companies here. Accelerate transit, overhaul zoning to allow more density, and make this a top priority. Serving this huge market could result in the next Boeing.

Solar farms grow in new energy mix

If Cascadia is going to get serious about leading on the global climate crisis, it will need more forms of clean energy, in addition to benefitting from its lucky inheritance of hydropower.

According to my former colleague Hal Bernton, there are 21 proposed projects that would cover 22,000 acres in Eastern Washington with solar panels, a source of clean power and income in an economically challenged area:

“The sun is a crop and I think we need to harvest it too if we are going to move away from fossil fuels … Anyone who thinks that the climate isn’t changing is crazy and we need to do our part,” one landowner said.

This is a potential boon for Cascadia, both as an opportunity to build and expand new industry and to demonstrate how to combat climate change.

The epicenter is Goldendale -- where I've been traveling for 25 years -- and where wind power is a booming industry. There are lots of crosscurrents between new and old residents and businesses. The story doesn't detail the potential electricity generation or grid connections.

Hopefully Klickitat County guides development and lifts its moratorium on new solar farms, rather than letting nimbys prevail. 

Looking for inspiration? Consider this dramatic growth in India. Or Australia and China. Or urban environments that could be partial models for Cascadia.

Compare this to the early days of Cascadia Report less than 15 years ago:

• Wind company proposes first turbines in Yakima
• Push for more renewable energy meets nimby
• Wanted: Someone to make windmills

 

After a year of COVID-19, ready for a cruise

Cruises may soon resume between Alaska and Washington, boosting tourism in both states but cutting out British Columbia.

Alaska cruises typically stop in B.C. because U.S. law prohibits foreign-flagged vessels – most of the industry – from transporting passengers directly between two American ports. In 2019, Victoria and Vancouver had a combined total of 553 ship visits.

After Ottawa extended its ban on cruises until Feb. 2022 – saying these sailing petri dishes potentially tax the healthcare system – Alaska’s U.S. senators announced plans for an exemption that would allow cruises to skip Canada.

Given  a year of COVID-19, a cruise may not be on everyone’s to-do list. Yet the industry is a driver of Cascadia’s previously booming tourism sector, even if the environmental impacts are severe and the economic benefits are probably overstated.

The ships are floating cities, burning dirty fuel and bringing a city’s worth of sewage. Canada should use the current hiatus as an opportunity to ban dumping raw waste and cut emissions, notes a recent report. (Luckily Victoria's Mr. Floatie isn't fully retired yet.)

The biggest economic benefit goes to home ports, which get the flights, hotel stays, restaurant visits and shopping before and after sailings. Vancouver had the Alaska cruise market to itself until 1999, when Seattle's terminal opened and faster ships made it attractive, especially for American passengers. In 20 years, Seattle's business grew to 1.2 million annual passengers, generating $900 million and 5,500 jobs in 2019, according to the Port of Seattle. Despite the competition, Vancouver still had 800,000 passengers in the last year before the pandemic.

The growth wasn't a straight line. For example, in 2006 Cascadia Report wrote about Seattle losing a cruise line to Vancouver. That turned out to be a blip.

Surely cruises will be back eventually. Now is a chance for some towns to take Sitka's example and reorient toward independent travel and for the region to rethink blind investment given the pros and cons of the industry.

The best way to get more, faster Web access

Just after paying my $145 monthly telecom bill, I noticed this Wall Street Journal story about how cities nationwide are trying to promote faster broadband Internet service.

The problem is that much of the U.S. is falling behind other industrialized economies in terms of Web access speed and cost, which potentially hinders innovation -- not to mention convenience. How is it that high-speed Internet is just a quarter as costly in Japan and even Canada has faster service?

Washington in particular lags behind. See this post. Tacoma has a municipal network and this year Gov. Gregoire signed a law to begin planning broader system. But those seem like very small steps.

Several U.S. cities are investing in their own networks, against the wishes of telecom firms that nearly have a stranglehold. According to the article, telecoms seem to have two main arguments. The local projects are an unfair competitive threat, they say, and the projects will be more costly than local governments project. (Here's the latest from Qwest.)

Should local governments here be doing more to help?

B.C. may boost exports of trash

Vancouver wants to dramatically boost its Washington-bound exports of one product it has too much of: trash.

And why not? Canadians would pay more to cover the cost of sending trash trains to a landfill on the Washington side of the Columbia River Gorge, helping the economy of rural Klickitat County, according to the Seattle P-I. At the landfill the trash would be turned into sellable energy.

The shipments would begin just ahead of the supposedly eco-friendly Olympics and, predictably, the idea is already riling residents who live along the prospective route of trash trains. Whistler and Seattle already export their trash elsewhere in the region and other reports suggest there may, in fact, be other B.C. alternatives.

But the richest part of the P-I article is the appeal to regional sympathy by one of the proponents:

Marvin Hunt, a councilor in Surrey, B.C., and chairman of the Metro Vancouver Waste Management Committee, said the garbage shipment is just temporary until a new facility is ready in the province.

"This is the Northwest. We feel like this is all family here in Cascadia," Hunt said.

"We have a little problem right now, and when you have a problem, you ask your brothers and sisters to help you out."

Hooray for the carbon tax

This week British Columbia passed North America's first carbon tax, a big step toward tying sustainability, transportation and market forces. Why can't the rest of Cascadia build on the example?

The tax has been in the works for a while but I missed the passage until I arrived in Vancouver Friday night and noticed it was all over the papers and TV. Looking back, I can't find a single reference in mainstream Seattle-area media.

This policy is huge news because it stands to begin discouraging emissions while making taxation more progressive. Here are some interesting first takes:

-- There are some links to more details and praise for the potential environmental impact here.

-- The business community is glad that there's finally a law, according to yesterday's Globe and Mail.

-- The Tyee looks at whether the tax is fair, here.

-- Progressive Economics points out some flaws yet ends up praising the idea here.

Coming soon: Seattle-Northern B.C. connection

Seattle is about to get its first nonstop flights to northern British Columbia -- another step toward integrating Cascadia.

Alaska Airlines will fly to Prince George, a city 500 miles north of Vancouver at the heart of B.C. timber and mining industry. Unless you like looong drives, the only way to get there now is on the three daily Air Canada flights from YVR.

The convenience almost makes me pine for the days when I was a reporter covering Weyerhaueser and the cross-border timber industry.

More importantly, it suggests that there's demand for this sort of regional travel. The news slipped by while I was dizzy about new nonstops to China, Germany, Mexico and France.

Fed up with cattle class? Try yoga to China

If you like in-flight yoga, it's a good day. You'll soon be able to fly nonstop to China from Seattle on an airline that offers that amenity.

The new flight to Beijing on Hainan Airlines is the latest increase between the two countries and the latest of several new international offerings from Sea-Tac. This one is probably a boost for tourism and some business travelers.

But flights four times a week hardly makes Seattle the Cascadia gateway for the China market. Vancouver has daily nonstops to Beijing, Shanghai and Hong Kong -- with 30 a week to Hong Kong alone.

We have money -- but no good way to send it

Sending money between the U.S. and Canada ranks with border delays and underdeveloped transportation infrastructure as obstacles facing regionally minded Cascadia citizens.

Recently I tried to pay a bill in Canada by sending C$113 from Seattle to Victoria. Apparently I ran afoul of post-9/11 inconvenience, anti-money-laundering worries and maybe even technology. I can accept some confusion, but there's got to be a better way.

When I went to a Washington Mutual branch asking for a money order, payable in Canadian funds, the teller looked at me like I was crazy. Bank of America said they could order a money order in about a week. Western Union was willing to help me for a hefty fee, but only if I wired the cash to an individual, who then would have to pick up the cash at another Western Union outlet.

Desperately seeking a good money changer, I called the Canadian consulate in Seattle. The single main phone number leads to choices in the automated system that all lead to a dead ends. After nearly three minutes of messages in English and French, I picked tourism. Then the message said there is no longer a tourism office and suggested calling immigration. The immigration line said they no longer take telephone inquiries.

My solution was to find a friend who happens to have an account in a Canadian bank -- a move he took post-9/11 in order to handle details related to his Whistler rental. He says his bank puts a 45-business-day hold on USD checks (even if he writes it to himself) so he's resigned to simply planning way ahead. It's nearly enough to keep us on our respective sides of the border.

Critics of tall Seattle buildings have it backward

Critics of plans for taller buildings in Seattle's South Lake Union area have it exactly backward.

If anything, the city should encourage more building in the area, creating demand for transit rather than encouraging sprawl. Instead critics want to soak the developer to pay more into a fund to create "affordable" housing.

Now, zoning in the area requires special permission to build even 12 stories. Why not require that buildings be at least that tall? Set design review standards, sure. But let's build the workplaces for thousands of employees and new residents.

What's wrong with a supposedly sweetheart deal between developers and the mayor, as long as the city gains? Among the benefits: More housing supply in the city should lower overall prices and make transportation options feasible.

Of course the city should negotiate to get the best terms in this area, but better those rules be streamlined and transparent to encourage more, better building instead of hinder it. Unfortunately the potential benefits are totally lost in today's story and the reader comments.

Missing the Olympics 'bounty'

It's refreshing to see a story in the Seattle Times today about how Washington risks losing out on the economic benefits of the 2010 Olympics.

Cascadia Report has mentioned this issue many times, including here and here (and don't forget the Olympics category here).

There are a few problems with the story:

-- Border hassles are a big factor. But what about the falling value of the U.S. dollar?

Both sides are noticing a drop in travel. From January to April of this year, same-day visitors from the U.S. to B.C. dropped by almost 13 percent, Periwal said.

Travel to B.C. is a lot less interesting to Americans when their money buys 20 percent less than it did just months ago. On Sunday night, it took 10-15 minutes to cross the border southbound while northbound waits were over an hour. It was the reverse on Friday evening, at the end of a day of post-Thanksgiving sales.

-- Canada isn't necessarily more feel-good about the border:

G. Kathleen Hill, deputy consul general at the U.S. Consulate in Vancouver, pointed to a fundamental difference between border priorities: While the U.S. priority is security, Canadians value the free flow of goods and people, she said.

Try telling that to each driver with Canadian plates entering B.C. ahead of me on Friday. They had to open each car door so the border agent could search their vehicle. (Of course, U.S. agents are no strangers to over-the-top screening.)

-- Roads aren't the only solution:

Driving is unlikely to get dramatically more pleasant, especially when you factor in worsening congestion along I-5 and throughout Vancouver. That makes boosting train service an obvious opportunity to boost mobility. Amtrak currently offers a single train and four buses each day between Seattle and Vancouver. Why isn't B.C. funding improvements north of the border to accommodate more trains?

Cascadia as global outsourcing way station

The Tyee has an interesting article questioning the benefits for the Vancouver area of a new software research center in Richmond, B.C. There are some smart comments too.

To me, this seems like a trend B.C. should support. Obviously the U.S. and Canada are very different labor markets, especially for skilled technology workers with Asian passports. Even if the new research center doesn't mean more Canadian hires, every Asian worker will make B.C. more fertile for technology and, over time, pay off by making it a more dynamic business environment.

From one dark place to another -- nonstop

A day after the onslaught of standard time, it's hard to imagine anyone wanting to fly nonstop to Germany. But thanks to Lufthansa at least Seattleites (and anyone doing international business) will have the option.

The Sea-Tac-to-Franfurt nonstop announced today is the latest increase in air service since the Port of Seattle lowered its fees to attract more routes. That's the right sort of subsidy -- a targeted incentive that mulitplies the economic benefit. Recent new flights include to Mexico City and Paris.

There were rumors that Sea-Tac was courting a nonstop to Munich (Vancouver and Portland already have Frankfurt flights -- Portland, thanks to a package of tourism incentives). Lest anyone misconstrue the addition, note that Lufthansa also announced a host of new flights from Canada today.

When the flights begin in March, Seattle may enjoy the best connections to Europe it's ever had. (True, Aeroflot ended its nonstop to Moscow. But Sea-Tac will have daily scheduled service to five business centers: London, Paris, Frankfurt, Amsterdam and Copenhagen.)

Sausage-making over farm subsidies

The Omnivore's Dilemma is playing out now in Congress over the latest package of farm subsidies.

In an excellent op-ed in the New York Times, the author of that book makes a clear case against current agricultural policy. And then he turns the tables:

How could this have happened? For starters, farm bill critics did a far better job demonizing subsidies, and depicting commodity farmers as welfare queens, than they did proposing alternative — and politically appealing — forms of farm support. And then the farm lobby did what it has always done: bought off its critics with “programs.” For that reason “Americans who eat” can expect some nutritious crumbs from the farm bill, just enough to ensure that reform-minded legislators will hold their noses and support it.

Cascadia Report has found farm subsidies to be an easy target, for example here and here and here. We're waiting for some good policy to praise.

B.C. plan could actually cut gas emissions

Seattle announced Monday that it managed to cut emissions of greenhouse gases over the last 15 years. Too bad emissions from cars are bound to continue rising.

Meanwhile in British Columbia there's serious talk of a policy that could really make a difference: a carbon tax. The proposal would shift taxes to give incentives for lower emissions. It seems a lot more effective than just encouraging everyone to ride bicycles.

Washington and the Seattle area need to think along the same lines. This report includes a chart of Seattle's pollution sources and how hard it will be to make more progress. Next steps should be replacing the viaduct with transit and better streets and then nudging the region toward a more sustainable transportation network.

The Hamptons, Aspen and ... Vancouver

Think the Seattle condo market is going out of hand? Consider Vancouver.

"I summer in THE HAMPTONS... I winter in ASPEN. My home, THE RITZ-CARLTON, VANCOUVER." That's the seductive tag line in a full-page ad on the back of the A-section of Thursday's Globe and Mail Ontario edition.

The condos, which run $2.25 million to $10 million, are part of a skyscraper building boom that will give Vancouver a tall skyline. The Web site address says much: vancouversturn.com.

They're also part of a trend that has made Vancouver Canada's priciest housing market. Meanwhile, Toronto -- a big presumed audience for the Ritz-Carlton -- is a bargain. Ads on bus shelters in downtown Toronto last week promised two-bedroom luxury condos near the financial district starting at $159,000.

Cost of driving makes ferry feasible

A boat owner wants to start ferrying commuters between Seattle and Gig Harbor for $800 a month.

The reason the idea isn't totally laughable is that new tolls, increasing road congestion and higher gas prices are beginning to reflect the actual cost of driving:

Dividing $800 by 20 workdays a month comes out to $40 a day. He said with the price of gas, the tolls on the Tacoma Narrows Bridge and parking in downtown Seattle, the ferry wouldn't be much more expensive than driving — and a lot less stressful.

Loonie = greenback: Who wins and loses

Longing for the happy days of bargain meals, rooms and ski slopes in British Columbia? Get over it.

Today the U.S. and Canadian dollars reached parity for the first time since 1976. The greenback has slid more than 60 percent against the loonie in the last five years and there's every reason to think the trend will continue.

It's already clear that the situation is tricky for anyone who is easily confused by U.S. and Canadian coins. I remember using Queen Elizabeth quarters and bills at Safeway in south Seattle as late as the early '80s. Those days may be back.

So who wins? Businesses in the U.S. that cater to Canadian customers. With their increased buying power, more Canadians will be traveling around Cascadia. The Victoria Clipper says traffic from Canada is up 25 percent this year. Things are surely looking up for discount shops and Costco stores just south of the U.S. border.

Potential losers come to mind more easily:

-- Anyone in Canada who depends on U.S. tourists. On Wednesday organizers of the 2010 Olympics unpersuasively insisted they won't be hurt because they've hedged their budget against currency changes. Too bad U.S. tourists haven't.

-- Anyone who depends on sales of Canadian lumber -- a huge slice of the B.C. economy, in other words. The current slump in demand from U.S. housing combined with the strong loonie will do what years of softwood tariffs couldn't: protect uncompetitive U.S. lumber producers.

Who wants to ride these old trains

Never mind the snazzy drawings of Acela trains below -- service in Cascadia is getting a temporary setback while Amtrak deals with equipment problems.

On Saturday I was driving north on a (very congested) I-5 near Nisqually when one of the Cascades trains passed overhead. But instead of the modern Talgo trains that make traveling between Vancouver and Eugene so comfortable, it was a train of three old Amtrak cars.

The Talgo cars are out of service until December, reportedly because of cracks in their suspension. Using old equipment is better than having an accident. But it means less capacity and it certainly makes the trip less pleasant, with the elimination of the business-class car option.

Following the region's skyscraper growth

It's old news that Portland's skyline is growing. Here's a cool tool to see it.

Obviously Cascadia's cities aren't alone. Here's a look at how some of it may be funnelled in downtown Seattle. And in Vancouver.

Airline snafus boost support for rail

The combination of airline delays and Amtrak's increasing ridership is generating goodwill that could lead to more support for passenger rail, according to a report in today's Wall Street Journal.

Over the last 10 months, ridership on Amtrak's fast Acela trains in the Washington-Boston corridor is up 20% -- "enough new passengers to fill 2,000 Boeing 757 jets." Ridership in the Chicago-St. Louis corridor is up 53% in the 10 months through July, the paper said. It could've mentioned recent gains in Cascadia too.

Hopefully this trend eases some opposition to investing in rail. Then we could talk about breaking up the Amtrak monopoly and introducing more market forces aimed at improving passenger rail rather than dismantling it.

The article suggests some encouraging signs:

"You have to begin to put the infrastructure in place to put in high-speed trains," says Gordon Bethune, who retired in 2004 as chief executive of Continental Airlines Inc. "It should be a national priority. If the French can do it, why can't we?"

Another airline-industry legend Robert Crandall, former CEO of American Airlines parent AMR Corp., says improvements to Amtrak's network in the Northeast are one of the best ways to reduce aviation gridlock.

In Cascadia, it's going to be a long process -- even in Washington, which has funded some rail improvements. Among other things, we need more support from the B.C. government to speed the Seattle-Vancouver corridor.

The case against biofuel as energy solution

I saw a biodiesel VW on the road today and the green part of me said I should get one of my own to help cut oil consumption. The rest of me says truly cutting pollution and energy use is a lot more complicated.

Biofuel production -- such as the new plant in Hoquiam -- surely makes sense as part of an array of energy alternatives. But it seems we're likely to accomplish more by guiding more efficient consumer behavior through incentives.

Consider this editorial in today's L.A. Times laying out the case against ethanol, a corn-based biofuel that's winning attention from politicians of all stripes ahead of the caucuses in Iowa. The article points out the environmental costs and makes a convincing case for fuel economy standards instead.

Meanwhile an Oregon State University study found that the cost of biofuels, including tax subsidies, is many times more than alternatives such as increased fuel efficiency.

What to do about the Sonics

It's a shame that the Sonics appear destined to leave Seattle after their stadium lease expires. So what to do?

Considering the benefit of having pro sports (like great theater, music, restaurants, etc.), it makes sense for some public investment in a stadium. But any deal should be off if the owners are happy to leave this prosperous area for a smaller market.

Instead, this column suggests we treat them with Uptight Seattle politeness:

You know what I'm talking about. We've got to fight back with our strength. Let's give these oily Okies a three-year blast of the Seattle Freeze.

For you fans, that means: Be polite but aloof. If invited to a Sonics game, say you were thinking of going hiking. Don't really go hiking. Don't go to the game either. Be maddeningly noncommittal.

For civic leaders, if you run into an Oklahoma oilman, smile without showing any teeth. Say "let's get together sometime." Don't return calls.

If they make demands, appoint a blue-ribbon commission. If they get impatient, talk earnestly about the process. Use the terms "inclusivity" and "community stakeholders."

Questions about port rivalry

News that one of Seattle's oldest port customers is moving to Tacoma brought a variety of reactions. And unanswered questions.

The Port of Seattle seemed alarmed, saying Tacoma's wooing of NYK Line put the relationship between the ports at risk. Today Bill Virgin notes that, if they can't cooperate, maybe Tacoma should take over Seattle's port.

A few remaining questions:

-- If NYK Line (or another company) wants to operate its own piers, why does Seattle keep its arrangement with operator SSA?

-- What does the deal cost Tacoma? Reportedly the project is $300 million, which may include building costs for any port tenant. What will the NYK arrangement cost taxpayers?

-- What's the competitive advantage of Tacoma (or Seattle) versus other ports along the West Coast? Seattle has been losing business and Tacoma's recent gain is Seattle's futher loss. Both will have to answer that question to beat regional rivals.

I'd like to see the region's mainstream media tackle those questions next.

Running a global business from Cascadia

Getty Images is moving some of its headquarters functions from Seattle to New York City, reportedly because it's easier to do some international business there.

It begs the question: Is operating a global business from the Northwest a hardship? Nintendo plans to move. Six years ago, the departure of Boeing's headquarters was blamed partly on the difficulty of doing business from Seattle.

Yes, global firms like Microsoft, Weyerhaueuser, Starbucks and Paccar somehow muddle through. But maybe there's a wake-up call for the region in the latest moves.

Even Idaho may move on transit

Even the governor of Idaho is identifying steps that can be taken now to improve traffic congestion.

The Idaho Statesman reports that the anti-tax Republican plans to boost the number of employees who telecommute and to do more to eliminate daily trips. Unfortunately there's little talk of changing the car-dependent layout of towns that inevitably brings congestion.

In addition to managing demand for roads, it seems clear that infrastructure is needed to move more people. Luckily the community is on board with the idea of improving Boise's transit system, at least according to this report.

Meanwhile, back in Seattle, there's a new ad campaign seeking to convince voters that doing nothing is a better strategy. Let's hope the region doesn't miss its latest opportunity.

Low unemployment means strikes

What happens when a red-hot economy leaves the number of jobs and workers closely balanced?

In British Columbia and Alberta, workers are going on strike. There are a variety of issues behind the disputes but the underlying catalyst is that employees have the upper hand for the first time after years of stagnation.

What Vancouver can learn about rail building

Seattle's nascent light rail line was showered with praise this week -- in Vancouver.

The reason is the $50 million fund set up to help businesses impacted by construction of the light rail line through the Rainier Valley. Apparently there's no such support for business during construction of the Canada Line, which will connect downtown Vancouver, the airport and Richmond.

It's odd to hear praise of Seattle's transit efforts from Vancouver, which has had rail transit for more than two decades and is considering building a fourth line. But a representative of a Vancouver neighborhood suggested B.C.'s free-market loving government might support a Seattle-style fund: "It's a classic American approach," he said. "It's seen as an economic initiative to ensure a tax base, not as a handout. I thought the Campbell government might embrace this approach."

Seattle's Rainier Valley has been showered with support during the rail project, ever since the decision was made years ago to build that section at-grade instead of underground. Just wait until the surge of newcomers and gentrification when the line opens in 2009.

Seattle's latest shot at China flights

An airline that offers only business class seats wants to start flights between Seattle and Shanghai, a surprise entry in the race for more connections to China.

Beginning in 2009, MaxJet would fly to Seattle and on to Los Angeles. The airline faces stiff competition from other U.S. airlines -- at least seven applications have been filed for a handfull of flights allowed under a U.S.-China treaty, according to AviationWeek.

Seattle wants nonstop connections to China to jumpstart business and tourism. Meanwhile Vancouver has daily flights to Beijing, Shanghai and Hong Kong. This month a new airlines started nonstops between Hong Kong and Vancouver, meaning there are now 30 flights a week on that route.

Seattle backsliding on bicycle plans

Take a quick spin around north Seattle by bicycle on a Sunday afternoon and you'll find missing links in bike routes, bike paths that abruptly end and almost 100 percent preference for cars along roads and at intersections.

For the clearest example of bicyles taking a lower priority look at Fremont, where the Burke-Gilman bike trail was supposed to reopen this month after a year-long closure.

Instead the city suddenly agreed to extend the closure for another year. The reason? The neighborhood's top landowner apparently just started construction on an office building and doesn't want bicyclists nearby.

The change is one sign of backsliding on plans to make bicycling more practical. Evidence is piling up to suggest that Seattle is gutting its new bicycling master plan. For a study in contrasts, consider what Paris is planning.

All commuters should demand Seattle do better. A sudden route closure wouldn't be allowed if it blocked car lanes. Delaying better bicycle infrastructure simply makes it harder for the city to accommodate more people without adding to congestion.

Spending money to make money

The latest BusinessWeek has a summary of how Google convinced a poor North Carolina county to pay $212 million in exchange for siting a server farm there -- without even getting a guarantee of how long they would be there or how many locals they would employ. Poor suckers.

But wait. A few pages into the article there's a table of recent corporate welfare handouts, topped by Washington's $3.2 billion gift to Boeing in 2003 to site final assembly of the 787 in Everett. That deal surely played a part in improving perceptions of the state's friendliness to business.

Of course you have to spend money to make money, especially in a globalized economy. But how do you walk the fine line between losing to competition and selling out taxpayers? Unfortunately the magazine suggests just a few tentative ways to safeguard the investment.

Tacoma needs a sales job

Tacoma has had it with pr. Now it needs to close a sale.

After years of promotion as a tech-savvy livable city, it's now looking for a team that can actually lure investment and jobs.

Report: Washington's a better place for business

Forbes magazine ranked Washington the fifth best state in the country to do business and says the situation here is improving:

The biggest mover (tied with Tennessee), rising from 12th to fifth place, Washington is also the only state to finish in the top five in three main categories (labor, regulatory environment and growth). And Washington's numbers are up across the board when you look both backward and at projections into the future.

Ratings like this are problematic by defintion. But this one, coming from a conservative business publication, is likely to come up during campaigns for governor and legislature over the next 18 months.

The rating gives Washington kudos in multiple categories, especially growth prospects, reduced red tape and low energy costs. The magazine says this results in innovation: "Washington has had more businesses open per capita the past three years than any other state in the U.S."

The lowest mark was for quality of life, which includes schools. The state did well despite transportation woes (which would seem to drive up costs but don't seem to have been a factor in the low quality of life score). The state's tax structure wasn't an issue.

The magazine rated Olympia as the 10th best metropolitan area for business. Spokane, Bremerton, Portland and Eugene all finished in the top 50 (out of 200 rated). Oregon moved up three places to 28th.

New container port gets funding

While infrastructure bottlenecks constrain shipping at Cascadia ports, plans are moving ahead for a brand-new container facility -- one big enough to eventually handle as much freight as Tacoma's.

Oregon's legislature recently approved a $60 million package to dredge the harbor at Coos Bay over the next five years. The funding hinges on a major shipping company commiting to operate there. The Oregonian called the prospect "an economic dream come true."

Though hurdles remain, the deal is the latest sign of more competion for ports in Vancouver, Seattle and Tacoma. It should underscore the need for more efficiency at existing ports and for transportation improvements to keep freight moving.

The Coos Bay project reportedly includes a new jetty and $250-$750 million in terminals, rail infrastructure, a container yard, docks and wharves. Eventually it could handle 2 million 20-foot-long containers, roughly the volume at the Port of Tacoma.

Tapping tidal power from Puget Sound

Tide-driven power turbines may be coming to Puget Sound. The Snohomish County energy utility is beginning research into installing generators that could power 60,000 or more homes.

The studies would inform debate over harming the already troubled ecosystem:

The modeling could also show whether the turbines could affect tidal currents in Puget Sound, slowing them. Some observers worry that losing such "kinetic energy" could harm places such as Hood Canal, where water circulation already is poor.

Others believe turbines won't mix well with endangered salmon and the marine animals and fishermen that depend on them.

The proposal was reported a couple months ago, along with introduction of a bill by U.S. Rep. Jay Inslee to promote development of tidal energy through tax credits. That bill is now sitting in committee.

Losing out on the China travel market

Sea-Tac hosted the signing of the latest U.S.-China air treaty yesterday, but it's unlikely to host flights between the countries anytime soon.

So the question for Seattle is whether courting a Chinese carrier makes more sense than waiting to lure a top-flight international airline. Both Hainan Airlines and Shanghai Airlines reportedly have had talks with Seattle about starting flights, and Hainan has considered linking with Alaska Airlines for connections in the U.S.

Of course Seattle should pursue all comers to expand international service, in order to remain competitive and capitalize on visiblity around the 2010 Olympics. It should seek a Chinese carrier and continue courting major international carriers that would offer this region a premium network, for example a Cathay Pacific flight to Hong Kong. Note that Vancouver offers daily nonstops to three Chinese cities on a range of airlines.

Any nonstop would help trade and tourism. Consider the impact on some businesses in Oregon when Delta Airlines ended its Asia flights from Portland (eventually Northwest was recruited to start Tokyo flights). But a second-tier airline won't lure major corporate or frequent fliers who expect mileage plans and extensive networks. Smaller airlines using Seattle as a U.S. toehold would likely shift to bigger city as soon as possible (both Thai and China Eastern left Seattle for California in the 1990s).

Wanted: Someone to make windmills

Driving across the wind-swept expanses of Eastern Washington is enough to make a person wonder: isn't there potential for more wind power in Cascadia. If only legal ambiguity and NIMBYism weren't in the way.

Add this to the list of hurdles: a shortage of windmill makers.

This Wall Street Journal article shows how surging global demand for turbines outstrips supply. Manufacturers are reluctant to make long-term bets since the market in the U.S. isn't stable. Wind power requires major capital investment up front and who knows if tax incentives will continue or if siting the projects will get easier or more difficult.

Oregon is mentioned as encouraging turbine-makers to set up in the state. That's one way Washington could encourage development (instead of simply mandating alternative energy). Consider the possibility:

In the U.S., more wind power was installed last year than in any country in the world -- 2,454 megawatts, or more than the equivalent of two nuclear reactors. Despite the recent action, the U.S. still lags behind other countries that have spent decades nurturing wind power with subsidies and price supports. Germany has fewer wind resources -- breezy, wide-open spaces -- than the state of North Dakota, for instance, but has twice as much wind power as the entire U.S. Spain, with one-seventh the population of the U.S., has the same amount of wind power. Overall, only about 1% of power in the U.S. comes from wind.

Shift freight to rail, cut traffic congestion

Shifting freight traffic to rails would cut congestion and pollution, according to a study by Demographia:

In the Seattle area alone, shifting 25 percent of freight from trucks to trains by 2025 would mean 43 fewer hours in commuting time every year, compared with what is likely to occur otherwise. That same shift also would decrease air-pollutant emissions in the Seattle area by as much as 11,635 tons and save thousands of gallons of fuel.

The trick, of course, is making the change. Improving and expanding the Eastside rail line and also adding rail capacity throughout the Vancouver-to-Portland corridor could handle the traffic. Curbing the subsidy for cars and trucks on freeways would make the shift financially sensible.

Too many want to live in downtown Vancouver

Living in downtown Vancouver is so popular the city needs to keep people away in order to preserve room for offices.

As a remedy, the city may allow still taller office buildings downtown and expand the area where offices have priority over condos.

Taller buildings are already on the way. Yet given Vancouver's shedding of headquarters jobs, the bigger question may be what businesses will fill any additional space.

We're all paying for your milk

Market-bending crop subsidies only prop up the Midwest, right? Think again.

Farms in Washington got $266 million in federal subsidies from 2003 to 2005, while Oregon got $99 million, according to a national database by the Environmental Working Group. Wheat and barley got the most help in Washington, while dairy got $1.3 million in King County alone.

Some subsidies are designed for worthwhile goals, such promoting conservation. But most of those objectives could be met with zoning or smart economic development alternatives. The current system is costly and wasteful. Subsidies make a mockery of America's lip service to "free trade" by distorting markets, especially impacting developing countries that depend on agriculture. And they are even linked to obesity.

The database addresses the 2002 Farm Bill, not windfalls like, for example, tariffs and forest road building to help the timber industry. The database is searchable by state, county, congressional district and program.

Seattle: A big city with a lake down its middle

New population data show Seattle has a shrinking share of the region's population. That's unless you consider the metropolitan region as a single big city facing the same regional challenges. Think of Seattle as a city with 22-mile-long Lake Washington running through its middle.

According to state figures released today, Seattle city grew 1.8 percent during the last year to 586,200, while King County overall grew 1.4 percent to 1,861,300. This story dives into reasons behind the trend.

Now the city of Seattle is less than one-third (31.4 percent) of the county's population -- and a smaller share (14.7 percent) if you consider the metropolitan population of roughly 4 million. The city was more than 78 percent of the county total in 1930 and 46 percent in 1970.

You could argue this trend means the city of Seattle should be starved of infrastructure dollars in favor of suburban roads and other projects. But people are drawn to a broadly defined "Seattle" rather than the suburbs, just as they're drawn to "Vancouver" instead of Richmond or Surrey (which are booming).

Projects simply need to serve a wider area than ever. It's clear that the area needs a variety of solutions, matching development with transportation. the Seattle area needs a system of rail along existing and future high-density corridors and a network of bus and carpool lanes connecting other areas. Incentives should promote the most efficient use of that regional infrastructure.

How some farmers beat region's fishing industry

It's no secret that Vice President Dick Cheney has promoted the federal government's repeated preference for resource-extracting industry over business that depends on conservation.

The final installment of this week's superbly reported Washington Post series about Cheney shows how he did it while stirring up minimum public outcry over the methods. Most important for Cascadia is the support for some Republican farmers over the entire region's fishing industry:

In Oregon, a battleground state that the Bush-Cheney ticket had lost by less than half of 1 percent, drought-stricken farmers and ranchers were about to be cut off from the irrigation water that kept their cropland and pastures green. Federal biologists said the Endangered Species Act left the government no choice: The survival of two imperiled species of fish was at stake.

Law and science seemed to be on the side of the fish. Then the vice president stepped in.

First Cheney looked for a way around the law, aides said. Next he set in motion a process to challenge the science protecting the fish, according to a former Oregon congressman who lobbied for the farmers.

Because of Cheney's intervention, the government reversed itself and let the water flow in time to save the 2002 growing season, declaring that there was no threat to the fish. What followed was the largest fish kill the West had ever seen, with tens of thousands of salmon rotting on the banks of the Klamath River.

Characteristically, Cheney left no tracks.

Read the last piece of the series here.

Push for more renewable energy meets NIMBY

Voting in favor of more clean energy was a no-brainer last fall. Now it's clear that legal clarifications are necessary to reach the goal of getting 15 percent of energy from renewable sources by 2020.

Consider Kittitas County, where some residents object to plans for several dozen wind turbines on the hills outside Ellensburg. The complaint? The turbines would block views, be noisy or disrupt the rural character of the place -- all predictable problems.

So why not head off such disputes by stipulating conditions for siting energy projects? For example, the state could determine allowable noise levels from turbines. If the project is quiet enough then it goes forward. Wide-open views will likely be missed, but surely windmills are a good alternative to using the land for sprawl or to dirtier air. The guidelines would speed projects throughout the state.

For now, a state agency, EFSEC, is supposed to settle disputes for the greater good. But without a stronger legal framework it could just as easily inflame urban-rural tensions and set up a backlash against decisions made in Olympia.

Washington going slower on the Internet

Washington falls behind many competing states and countries when it comes to Internet speed and access to broadband connections, according to a new report. Worse, the public seems to accept a low standard.

The median download speed in Washington is about 362 kbps, about seven times slower than in Japan, according to the report by the Communication Works of America. The data seem to come from surveys of people around the state who have DSL or cable connections. USA Today has a succinct summary of the report and national data.

The report suggests six policies that could promote more, faster Web access and Internet-related business. At least three seem to make sense on a regional level: 1) improve data collection to track actual speeds, 2) create public-private partnerships to promote deployment and 3) reform universal service subsidies that support voice service over data.

How much traction can the issue gain when cable and phone companies tout their services as "blazing fast," despite data that suggest otherwise? Citizens are hardly taught to expect more. I'm the first to admit that I don't know if my service is slow because of Comcast, my connection or my computer.

So far the subject hasn't caught on among local leadership. A caller on a Seattle radio show (starting at 27:50) last week asked King County Executive Ron Sims what's being done to expand access to high-speed Internet. Sims ducked the question, made vague reference to franchise agreements with cable companies, and continued talking about how important it is to get managers to allow telecommuting.

Measuring benefits of the booming economy

Here's an interesting editorial questioning the popular perception of British Columbia's booming economy.

The short piece is notable as a contrast to the majority of B.C. media, which are more likely to cheerlead for the Olympics and major development projects.

For details on how B.C. stacks up, take a look at the latest Cascadia Scorecard by Seattle's Sightline Institute, which includes a wide range of alternative indicators to measure regional development.

How Cascadia's economy ranks among nations

Here's an interesting take on the size of Cascadia's economy. This map replaces U.S. state names with a country of similar economic size.

The data may be fishy (New York must be No. 2 after California) but the map is an interesting way of representing the concept of global rankings. It also suggests that Cascadia should be willing to set policy that works for this region.

Economy gets reprieve from passport rule

The U.S. federal government was forced to postpone plans to require a passport to cross into the country from Canada, giving a temporary reprieve to regional business.

The new rules have already caused confusion without much indication of improved security. Surely the answer is better coordination of screening of visitors from third countries into the U.S. and Canada, not just requiring a particular document.

In any case, the delay should help business in U.S. towns that rely on cross-border traffic. Vancouver Island, which was expecting a double hit from the border rules and the exchange rate, now has more time to develop to a convincing tourism strategy.

Landlord wants a Rockefeller Center in Seattle

Friday's Wall Street Journal has an interesting update on plans to dramatically redevelop a large swath of land near downtown Seattle, an opportunity to create "something akin to Rockefeller Center," according to the landlord.

Clise Properties has long had big ideas for its 13 acres in the so-called Denny Triangle, which was rezoned for tall buildings last year. Coverage of those plans includes this Seattle Times piece from over a year ago.

The Journal's story raises the question of whether Clise waited too long to sell the property, with long-term interest rates now at five-year highs. Scion Al Clise is quoted as saying he may take the land back off the market if he doesn't get a lucrative enough offer. He also says he's open to uses such as green space and cultural facilities, in addition to the usual office towers and expensive condos.

UPDATE: Both Seattle dailies posted stories on the huge redevelopment plan by late Friday morning, citing press releases or statements from Clise. Both seem to assume that a major project is inevitable. Neither credited the Journal.

More streetcars may be on the way

Tacoma may follow the example of Portland and Seattle by starting to rebuild a city streetcar network. Hopefully the momentum will continue to grow.

Relatively inexpensive streetcars could help knit neighborhoods together, reduce pollution and stimulate economic growth, according to a recent feasibility study. It's hardly a done deal:

All of the details still need to be determined, including precise routes, the order in which they would be built, the style of streetcar, and funding.

Streetcars demonstrably meet the goals reportedly outlined in the Tacoma study. The trick is getting enough critical mass to convince naysayers. Portland's system -- which is now a true network of more than 7 miles interlocking with the metropolitan light rail and bus system -- is frequent, reliable and a far more dependable economic-development engine than city bus routes would be. Seattle is building a starter streetcar line that should be a boon to its neighborhood but may be not ambitious enough. To serve a serious role in city transportation it needs to stretch a few miles north (over bridges that need refitting).

The big question is how to finance such systems. Seattle is using a mix of city transportation funds and neighborhood taxes. Portland uses a tax increment system that Washington doesn't widely allow. Taxing sectors of the city that would benefit, with the rates declining according to distance from the route, may find less opposition.