Cascadia Report

Vancouver (but not Seattle) a world commerce center

Don't let clogged traffic, overpriced real estate and a lack of major businesses fool you. Vancouver is a top center of global commerce.

So says a new study by MasterCard ranking the top 50 cities as "world centers of commerce" based on their contribution to economic activity. Vancouver ranked 28th (between Montreal and Brussels), according to the index of six characteristics. It got high ratings for legal framework, ease of doing business and economic vitality. Those outweighed poor scores for being a financial center, knowledge/info economy and being a business center.

Seattle didn't even make the list, which included eight other U.S. cities. Vancouver's result comes despite the city's steady loss of headquarters and relatively weak corporate environment. Of course, the presence of two University of British Columbia professors on the nine-member panel that set the rankings could have something to do with it.

Another port under fire for bad finances

Leaders of Olympia's port are the latest in the region to take fire for sagging financial performance despite a boom in trade.

A new shipping facility at the port has been repeatedly delayed by an environmental review and has had ripple effects throughout Puget Sound. The port commissioners reportedly declined to comment on the costs at their latest meeting.

Americans don't know Canada or want to visit

Americans don't know much about Canada and aren't interested in visiting.

That shocking trend is contributing to a 34 percent drop in visits to the country by Americans since 2000 and threatening a chunk of a major industry in Canada, according to a recent study. Factors the study didn't mention include the strict border rules and the rising Canadian dollar.

Apparently prospects aren't likely improve either:

Boomers and their elders, tend to have a more favorable impression of Canada than Generations X and Y, who view Canada as an average, even boring, travel prospect.

Portland has land and plans to expand

It must be nice to have abundant land. Consider Portland's plans to expand its airport in anticipation of future traffic.

The expansion would extend a runway on existing port property, in step with its master plan. It's a contrast to Sea-Tac, which needs to become more efficient within its current footprint.

Portland's isn't the only airport facing a bonanza. Oregon is considering a package of tax benefits for rural airports around the state.

Lesson from Japan: Boosting airport capacity

Most visitors to Japan are funneled through Tokyo's Narita Airport, which is a good example of how an airport can accommodate more people without growing larger. The lesson should put to rest the idea that Seattle needs a new airport.

For at least its first 30 years Narita was a joke. Located about 50 miles outside Tokyo, with a single runway and too-small terminals, it was the worst major airport in Japan and fell far short of those of rival cities like Seoul, Hong Kong, and recently Bangkok, Shanghai and Kuala Lumpur. Business began going elsewhere partly because of Tokyo's travel hassles.

Something similar could happen in Seattle, where Sea-Tac is plagued by delays and crowding even as rival Vancouver continues to stretch. A supposed solution? Site and build a new larger airport somewhere in the Puget Sound area.

Tokyo offers a better model. On my recent trip, I noticed again how two train lines ferry travelers directly into the terminal buildings, a second long-planned runway has been added on existing airport property and -- the biggest change in the last few years -- the terminals have been completely overhauled to handle more people.

Narita is also helped by the recent major improvements at Tokyo's huge in-city domestic airport and at airports in Osaka and Nagoya. Coordinating select flights from Paine Field and other satellite airports could complement Sea-Tac too.

Sea-Tac's third runway will provide extra landing slots and improvements to terminals and ground transport could boost overall capacity. Faster rail between B.C. and Oregon would relieve some stress for local travel. Combined with ground improvements at Sea-Tac, such changes could meet the region's demand and help knit it more closely together without the distraction of a new airport.

Finally, restoring relations with Alaska

Amid a series of trips to build international trade relationships, Washington Gov. Chris Gregoire found time this week to visit Alaska, reportedly the first visit there by a Washington governor in more than 25 years.

Relations have been frayed between politicians in natural resource-using Alaska and more urban Washington. But there's this fact from the AP story: "Ninety-seven percent of Alaska's goods pass through Washington, 70 percent through the Port of Tacoma and the rest through Seattle and private docks."

Regardless of politics, treating Alaska as a trading partner recognizes reality. Gregoire's other trade trips have been to Japan, Korea, China, France, Germany, the U.K., Australia and New Zealand. Mexico comes next month.

Lesson from Japan: Leadership needed

One surprise I found during my recent visit to Japan was the frequent discussion of what Nicolas Sarkozy might accomplish in France. The new president was on magazines and TV shows, and I had several conversations with Japanese who were enthusiastic for the tough reforms he seems to represent.

The issue matters for Cascadia because, as Washington Gov. Chris Gregoire likes to put it, in a globalized economy we're more like a small nation than a state. The economy of Cascadia is in better shape than in either Japan or France, which makes it more difficult to generate the leadership needed to fix our fundamental problems.

The weekend I arrived, the former longtime leader of the Socialist Party -- the only true opposition to hold briefly hold power in Japan in the postwar era -- was on the top Sunday TV talk show discussing opposition to changing the no-military clauses in the constitution. Setting aside the specifics, what's remarkable is that the entire political opposition seems to think that saying no is adequate policy. The comments were amazing because she said exactly the same things when I interviewed her six years ago.

The same is true for economic leadership. Though Japan's huge economy continues to grow and there are far more opportunities than ever before thanks to reforms, there hasn't been nearly enough deregulation or revamping of policies. With a sclerotic opposition and lack of strong leadership, cynicism will only spread. Sarkozy came up as an example of the sort of change agent Japan needs.

You could argue that our situation isn't much different. In King County, the passing of Prosecutor Norm Maleng opens up opportunities for younger politicians. Someone needs to spell out a not just that globalization is an opportunity, as Gov. Gregoire has, but a vision for how this region can prosper. Today's properity is all the more reason to develop this leadership now.

Canadian dollar soars, confusion ahead

The Canadian dollar topped 94 U.S. cents for the first time in the 30 years this week, and the currencies could reach parity this year.

There are plenty of reasons to be concerned about the economic impacts of the loonie's rise. But I'm still worried about the confusion over which coins to use where.

Organic farms growing in B.C.

One more thing to think about when you buy organic food: the impact.

Consider that British Columbia has converted more land to organic farming -- reportedly one in six farms are now organic. That's despite the pressure of urban growth and rising costs that are reportedly squeezing small operators. Still, compared to the rest of Canada, the enthusiastic conversion in B.C. seems wise.

New competition for seaports

China's biggest shipping company plans to launch the first service to a new container port in Prince Rupert, British Columbia later this year.

The new container port, which has uncongested rail access to markets in the Midwest, is the latest competitive threat to ports in Vancouver and especially Seattle and Tacoma. Last month plans were floated for another new container port on Oregon's coast.

What threatens the arts

Cuts in federal funding and programs at schools threatens the arts in the Seattle area, according to this column.

That's a good, well-worn point. But it may be that the area's rising costs are a bigger hurdle to a vibrant arts scence, which is a key asset for retaining top workers and making the regional livable. Consider that Portland's lower cost of living reportedly is attracting musicians and other artists from Seattle.

Of course it's important to support local arts organizations, which can become hubs for activity. For example, Novelist Tim O'Brien captivated a sell-out crowd at Richard Hugo House last night with his thoughts on writing. (Note: I've been serving on the board there.) I have to wonder how many would-be writers in the audience are forced compromise their art because of Seattle's costs.

A couple of partial solutions: boosting the supply of urban housing and improving all forms or transit. Pocketbooks -- and career choices -- would be directly affected if more of Seattle were walkable and a car were less necessary.

Outsourcing local journalism

What's good enough for widget makers, software engineers and lawyers ought to be good enough for journalists, right?

Pasadena Now, a Web news outfit, plans to outsource coverage of local news events to India. The story appeared last week and has sparked predicatable indignation from journalists everywhere. For one thing, will they make it clear that the reporters are in India rather than, say, at Pasadena City Hall? Huffington Post weighs in here.

Few have figured out how to make money online from original reporting -- especially the expensive stuff that requires expertise or lots of time. But you have to think that eventually readers will reward quality their time. At least that's the hope.

Two reactions to news of Nintendo's pullout

There were two initial reactions to the news that Nintendo plans to cut staff in the Seattle area.

One is concern. The company moved to Redmond from New York in the 1980s and is one of the firms people point to as an example of Seattle's role in global business. If they're ready to leave, it must have to do with taxes, regulations, quality of workforce, congestion, etc. After all, when Boeing moved its headquarters it said it was for operational reasons but then, when asked about the business climate, a top executive said "I think we suck".

The other is a guilty sense of relief. The prospect of one fewer employer could mean lower housing prices and fewer cars on the road. The fact even supporters of economic growth can appreciate the idea of a slowdown probably means the area has done a poor job of accommodating what we have.

Projects could make Vancouver like Seattle

A big British Columbia project to build roads and other infrastructure throughout the Lower Mainland could turn Vancouver into -- gasp -- Seattle.

The article linked to above draws some great contrasts between the policies of Vancouver, Seattle and Portland. But it also confuses the point.

While central Vancouver may be an urban model, the metro area already sprawls for miles. The Gateway Project to better connect ports with roads and trains may be over-ambitious but at least some of that infrastructure is necessary to keep the economy growing. Better to strive for improved infrastructure rather than simply oppose it.

U.S. discount airline lands in Vancouver

Vancouver got its first discount air service from the U.S. over the weekend.

The Frontier Airlines flight to Denver coincides with the begining of cruise season. Lower fares could help Vancouver successfully compete in the lucrative market against Seattle, which has more flights and discount carriers.

Vancouver already has discount service to points in Canada and Europe.

Think twice before selling that bridge

Privatizing bridges, ferries and roads is one way to fund new projects and upkeep. But it isn't necessarily a good deal for taxpayers, according to a series of articles in BusinessWeek.

The magazine could also have considered British Columbia, where the governing BC Liberals have pushed privatization of health care, transport and other services. Just today there's an example of how the results have been mixed.

It would be interesting to see analysis of how these deals could be structured on a local level to better benefit the community as well as investors. What terms can be required? What can the rest of Cascadia learn from B.C.'s example?

Seattle needs more taxis

If taxis were more convenient, more people would use them. To someone looking for incentives to ditch his car, that seems obvious.

Luckily Seattle may license more cabs, according to the Seattle P-I. Yet officials are reluctant because the extra competition could hurt existing drivers. (Seattle has 643 taxis and King County 200+ more.)

Why not consider taxis a part of the city's transportation network, alongside buses, rail, carpooling and biking? How about adding as many as the market will bear? The city could help by establishing taxi stands in every neighborhood.

Compare Seattle to compact cities. Boston has about 1,800, San Francisco 1,400 and Denver more than 900, according to this study. Vancouver is listed as having about 500.

Seattle getting flight to Mexico City (finally)

Seattle has been the largest U.S. or Canadian city without a nonstop flight to Mexico City. Until now.

Aeromexico this week said it would launch daily flights to Mexico City and on to Guadalajara. The daytime service is a big boost to businesses that operate in the area, saving travelers time and potential delay.

The additional flight is the latest since the Port of Seattle lowered fees to attract routes to Sea-Tac to better compete with Portland and Vancouver. (As a non-hub, the Seattle metro area has been the largest without a direct Mexico City connection.)

Who loses? Probably Alaska Airlines, which faces higher fuel costs and more competion. Today it said its bottom line worsened from a year ago and vowed to "do whatever it takes" to hold onto its dominant share of the West Coast market. Aeromexico's addition eats into a market Alaska has been slowly building.

Second airport part of fix for Sea-Tac

Backers of passenger service at a second Seattle airport say about one in five Sea-Tac travelers would use Everett's Paine Field.

While there's plenty of community opposition to adding some flights, it looks like a partial solution to limited capacity at Sea-Tac. The project needs to seen as a long-term fix for a region that seems incapable of siting a new, larger airport that could one day relieve Seattle's main airport.

Vancouver International has plenty of space to continue growing into Cascadia's dominant airport (it's already the only one expecting to handle the new A380 ). Sea-Tac could still grow as a function of the Seattle area's demand for additional nonstop connections. But extra capacity will need to be provided by Paine Field and improved train service to Vancouver and Portland.

Time for house cleaning at Seattle's port

The latest Port of Seattle controversy erupted because commissioner Pat Davis supposedly cut a deal to pay the retiring CEO a full year's compensation -- without telling the rest of the board.

Running up costs and losing business to rivals apparenty hasn't been enough to shake the port's management culture. Even last winter's fiasco over Christmas trees at Sea-Tac could be dismissed by some as part of wider cultural confusion.

The latest example of mismanagement ought to be enough for voters to demand change.

B.C. support for cross-border rail service

Finally, a sign of growing support in British Columbia for better regional transportation.

Apparently the recent speed record by France's TGV convinced the Vancouver Province to editorialize today in favor of better passenger rail service between Vancouver and Seattle.

Though Amtrak has already announced extra service, it will take political will for B.C. to provide the funds for track improvements north of the international border that are required for a significantly faster trains. Today's editorial isn't quite a full-throated endorsement (it ends with a tentative "All aboard?") but it's a start.

Why some people miss the old Alaska Airlines

Alaska Airlines is rapidly changing from a whimsical local airline into a big business that has to compete on dreary criteria like on-time arrival. The transition parallels Cascadia's changes amid globalization.

One sign of the shift for the Seattle-based airline is the replacement of older planes.

Friday's Wall Street Journal ($) has a wistful story of the "Arctic Eagles" who piloted old 737-200 jets into Alaska's small towns, supplying a lifeline of everything from groceries and medical supplies to tourists. Now they have to get used to new, more automated planes and deal with routine demands of flying in the Lower 48.

Although new route assignments will take the Anchorage-based pilots to sunny destinations like Cancún, Mexico, and Palm Springs, Calif., the pilots say they'll miss the old challenges and the camaraderie with crew members and local passengers.

I remember riding one of the old planes into Kodiak and noticing then that the feel of the cabin and the on-board atmosphere was different from the Seattle-to-Anchorage flight. One captain, who co-piloted a landing in Juneau that took 10 approaches, told the WSJ that flying planes that get "food on the table in Nome" will always be more rewarding than "getting a bunch of irate people to Newark."

Seattle port losing share to rivals

The Port of Seattle continues to lose market share to other West Coast ports, thanks to inefficiency on the docks and transportation hurdles.

Seattle faces increased competition from ports in California and especially expansion projects in British Columbia. Marshalling an effective response is squarely on the plate of the port's new CEO.

Better terminal luring flights to Vancouver

Vancouver is adding a nonstop flight to New Zealand partly because the expanded international terminal at YVR makes the city more attractive to carriers, according to today's Wall Street Journal ($).

The flight used to stop in Los Angeles but that airport is losing international flights because of its old, crowded international terminal. A similar story could be told about the rivalry between SEA and YVR.

The issue is about more than a handful of flights, as the WSJ puts it:

The stakes are high for cities. International passengers spend about twice as much as domestic travelers, and international airline service is one important competitive benchmark for cities competing for corporate relocations

Vancouver, which recently expanded its international terminal, is already wooing travelers from the Seattle area. Since significant improvements at Sea-Tac are years away, it has to rely on cutting fees to lure airlines, which is how it won a nonstop flight to Paris.

New B.C. outposts to court more Asia trade

British Columbia is about to reopen trade offices in Japan and China, a move that could heighten competition for trade with Asia, according to the Vancouver Sun.

While B.C. currently has zero trade and investment offices in Asia, Alberta has five, Washington State has five, and Queensland, Australia has nine.

These bare numbers are one thing. Beyond them, the competition to stand out in Asia from this part of the world looks even stiffer next to Alberta's sexy oil and gas industry and Washington State's heavyweight Boeing, Weyerhaeuser and Microsoft companies, which have engaged China since the 1970s and 1980s.

By all accounts, it is high time for B.C. to get beyond the wood demonstration project it cost-shares with the forest industry in Shanghai and its Tourism B.C. office in Tokyo, which has been there since 1992.

The new offices represent the latest in a string of moves intended to make B.C. the trade gateway to North America, reaching as far as India.

Seattle, Vancouver could co-host World Cup

Seattle and Vancouver may jointly host a major sports event like a World Cup, at least if the cities' tourism boards can help it.

The idea of capitalizing on the 2010 Olympics with a major regional event has been around a while. Now the tourism groups are looking at creating an entirely new marqee soccer, cycling or soccer event.

Of course the groups need to build local support in order to shoulder the financial and political cost of an event. Improving transportation links are essential. One interesting idea: adding seaplane service between downtown Seattle and downtown Vancouver.

Last U.S. newspaper reporter leaving Canada

It may get harder to find media coverage of Canada beginning this summer, when the last U.S. newspaper correspondent leaves the country.

Of course wire services, freelancers and contract staff will still cover Canada after the Washington Post closes its Toronto bureau. But it's debatable how much attention stories will command when not being covered by senior journalists. The effect will be magnified since regional news outfits take cues from East Coast papers.

Coverage of trade and transportation issues involving Canada is especially critical to Cascadia but usually falls short. For example, the dispute over softwood lumber imports was daily news in Vancouver but usually drew a shrug from editors in Seattle. It often takes a Canadian serial killer to get headlines in the U.S.

The effort to cut costs led The Wall Street Journal to announce the closure of its Canada bureau in December. That makes Canada the only major economy without coverage by the top financial newspaper.

More alternatives to owning a car

Here's another option for living in Cascadia without owning a car: more car-sharing companies are opening in the region.

Zipcar launched its service in Vancouver this week, hoping to ape success it has had in New York and other major cities where car ownership is less than convenient. It's part of a planned expansion along the West Coast, including Seattle and Portland.

In Seattle, Flexcar remains the main alternative to -- gasp -- owning your own car.

Plans afoot for major new container port

Ports in Seattle, Tacoma and Vancouver face increasing competion for the booming business of handling containers from Asia. Now maybe add Coos Bay, Ore. to the list of rivals.

A proposal would turn the isolated Pacific coast town into a major container port. A Danish shipping company would invest hundreds of millions of dollars to develop the port, which would then need improved rail connections inland.

There are big port-construction plans all along the West Coast, from a huge project in Prince Rupert to the coast of Mexico. Here's how a Coos Bay spokesman put it:

"This is a frog, and we continue to keep kissing this frog in hopes that it'll be something better than a frog," says Martin Callery, the Coos Bay port's director of communications and freight mobility.

Missing the cause of high gas prices

Legislation introduced in Olympia takes aim at Cascadia's high gas prices but misses a root cause: lack of competition.

Sen. Joe Zarelli, a Republican from southwest Washington, proposed a study to determine if the single pipeline that serves the area stretching from Vancouver to Eugene is adequate. One potential fixes, of course, is to relax permitting rules or reduce taxes to encourage construction of an additional pipeline.

It's no secret that gas costs more in this region than elsewhere in the U.S. and Canada. While supply and demand is part of the equation, close coordination of refining and distribution by oil companies is apparently a bigger factor. There don't appear to be any attempts to crack that.

UPDATE:

The original post above suggested that Sen. Zarelli advocates relaxed rules or reduced taxes to encourage construction of a new pipeline. Catherine Trinh of the Senate Republican Caucus emailed to say that the bill doesn't specifically mention either.

The exact language of the bill can be found here.

Getting business from border hassles

Draconian security measures could prevent visitors to the 2010 Olympics from crossing the international border.

Streamlining security is already a priority for Washington. Meanwhile Idaho figures it can get a boost by attracting Americans who don't want to deal with the hassles.

B.C. launches trade push to Asia, Canada

British Columbia this week unveiled a new push to build ties with Asia and remove barriers to doing business elsewhere in Canada. Both could help it reach the goal of being Cascadia's top gateway.

The Asia Pacific Initiative outlines a series of steps to boost B.C.'s profile in Asia. That's on top of federal dollars to boost trade infrastructure.

Meanwhile an agreement allowing businesses to operate freely between B.C. and Alberta for the first time went into affect this week and could help bolster Vancouver's position for trade. B.C. is already shopping the agreement to other provinces, though there are predictable worries that locking in trade undermines local democracy in the region.

Latest trade policies may hurt region's economy

In recent days the Bush administration slapped tariffs on paper imported from China and annouced a free-trade pact with South Korea. The moves could harm the long-term goal of more trade that's critical for Cascadia's economy.

The tariffs on Chinese products are an attempt to placate critics in Congress rather than address the economic trends that make U.S. products less competitive. In fact the U.S. has increasingly little leverage on China because that country is financing our runaway spending.

Today's announcement of a free-trade deal with South Korea also is less favorable than it seems. It appears to be another bilateral deal that ultimately protects some parts of U.S. industry at the expense of a backlash both overseas and among displaced U.S. workers. Cascadia's long-term interests would be better served by pushing for comprehensive trade agreements that level the playing field between multiple countries.

There's no question that trade can be improved by increments. Unfortunately these developments -- on top of earlier tariffs on Canadian lumber and foreign steel, and a series of unfair bilateral trade deals -- round out a dubious record on promoting trade.

Leadership on green industry from California

One surprising advocate of incentives to encourage cleaner industry is California Gov. Arnold Schwarzenegger. I finally got around to reading this succinct interview in the latest Fortune magazine.

The intro makes the case that Schwarzenegger is one of several Republicans who are working on programs to develop environmentally sound business. It puts it charitably: "The Republican party has not recently been associated with asertive environmental policy."

A few choice passages from the interview:

I know the American mentality when it comes to finances is to look at the quarterly returns. But there are decisions you will make today, right now, that will take you in a different direction if you think ahead. I have to think, How is California, with its population growth, going to get its energy supply in 50 years?

Does the GOP get this?

No. There are people in both parties who don't get it, but I would say I have a tougher time selling those things to the Republicans.

There's a billboard in Michigan accusing me of costing the car industry $85 billion. [Sponsored by Republican Congressman Joe Knollenberg, the sign says, ARNOLD TO MICHIGAN: DROP DEAD! The message refers to the damage that detractors say the new emissions standards will cause the U.S. auto industry.]

Those people look at this in a narrow way rather than really studying the subject and recognizing that this actually gives us an opportunity to create a whole new industry of clean cars and clean engines and components to build those engines. In California, what we call clean-tech industries are exploding left and right.

Won't there be losers with stricter pollution standards?

Only as much as the auto industry or any industry has to make changes to adapt to the behavior of customers. You have to react quickly. Even if we don't do anything about it, the Japanese will, the Chinese will, the Germans will. Detroit is struggling with it, yes, because they are behind.

Taxpayer bailout of rural areas to continue

The U.S. government is about to bail out the finances of dozens of counties in Cascadia that depend on the depressed timber industry. It needs to look for a longer term fix instead.

The latest proposal would spend billions of dollars over the next five years to compensate rural areas nationwide hurt by cutbacks in logging. The funds would forestall cutbacks in schools, roads and other public services that could paralyze much of the West.

So far, so good. At a time when the U.S. apparently has money to fund war in Iraq, cut taxes and subsidize corporations, why not bail out areas that have depended on timber for generations?

The problem is that there's little sign those areas will be weaned from the subsidy when the next five years of funding ends. Instead we should be working toward a system where costs are carried more by those who benefit (for example, commuters pay congestion pricing, companies pay their way and rural areas become more self-sustaining).

The worst outcome would be to spread taxpayer largesse beyond the current list of recipients, sustaining areas where economic growth can't. The Albany, Ore. newspaper editorialized for a change in the subsidy system, but its solution is more logging in federal lands. Never mind that the land actually belongs to everyone, not just residents of counties closest to them

Air travel to Europe may get easier

Getting to Europe from Cascadia may become cheaper and easier, thanks to an agreement between the U.S. and the European Union approved today.

The deal essentially lets airlines fly between any two points across the Atlantic, and opens London's Heathrow Airport to more carriers (currently it's limited to United, American, British and Virgin Atlantic).

That means more competition at Heathrow and connections between more cities across the ocean. For example, KLM is likely to replace flight slots at Heathrow currently filled with small turboprop planes flying to Europe with lucrative flights to the U.S.

The agreement should be seen as just a start. The U.S., which wants to protect its strapped carriers, successfully blocked plans to allow foreign airlines to take passengers between points inside the U.S. Imagine how service might change if Americans were allowed to fly British, Air France or Lufthansa from New York to Seattle instead of Delta. Hopefully increased competition across the Atlantic will encourage consumers to support allowing more of it close to home. The next step could be allowing service and price -- not regulations -- to dictate choices.

Cascadia closer to licenses for border crossing

Washington is close to approving a test project that would provide security along the international border without stifling trade and tourism. It's a big step toward capitalizing on Cascadia's growth before and after the 2010 Olympics.

Both houses of the legislature have approved legislation that would authorize an enhanced driver's license to serve as proof of citizenship. The state and British Columbia would test screening driver's licenses at the border with scanning technology that is supposedly cheaper and easier than a passport requirement proposed by the U.S. federal government. Here's the House version.

Assuming the legislation passes, Washington and B.C. will simply have to convince the federal governments to lay off with draconian border-tightening measures.

Whistler business hit by shooting

The first-ever shooting in Whistler late Friday night is a side effect of the resort's growing reputation for a party. The question is whether it will have any lasting impact on business there.

Shops in the Village reportedly were still closed on Saturday afternoon, 18 hours after the deadly shooting that followed a dispute outside a night club. The incident had Whistler officials doing PR about how safe the town really is.

Union disputes need for more tech workers

Bill Gates told the U.S. Senate Wednesday that restrictions on the number of skilled foreign workers allowed into the country on H1-B visas are hindering innovation. The cap should be raised from 65,000 a year to maybe 300,000, he argued.

Such a move would keep wages down and some skilled workers here unemployed, the largest union representing tech workers responded. WashTech makes the same case every time someone proposes steps to expand the skilled workforce, either through better education or immigration reforms. Brier Dudley links to the union and has more on the issue on his blog.

New trains may get a step closer to Whistler

Plans for expanded train service between Seattle and Vancouver might be the first step toward extending the corridor north.

Relocating the current terminus from downtown Vancouver a few miles southeast to Surrey would be a start. The change would eliminate the need to rebuild a bridge, cut the total travel time to Seattle and save more people in the metropolitan area a trip downtown to board, according to a local newspaper report Tuesday. SkyTrain would still provide a link to downtown.

Most importantly, serving more people in the area would build public support for trains. That's critical since funding for improvements would come from Canada. The new station could spur transit-oriented development in the area and eventually boost ridership from the Vancouver-area by 7 percent, assuming five trains a day to Seattle, according to a report by the Washington transportation department (it's in Appendix E).

British Columbia has studied options to implement train service to Whistler that's competitive with driving. Though the cost would be high, it could become realistic as the financial and time cost of driving rises. The Washington study bases projections for future ridership between Seattle and Vancouver on a series of projected fares and similar calculations of return on investment could be made further north.

Oregon lawmakers doing their jobs

Lawmakers in Oregon appear close to doing their jobs. The people's representatives hashed out a tax package Wednesday designed to fund long-term investment in the state -- and they didn't simply refer the issue back to voters.

Even the lobbyist for the Oregon Business Association was impressed:

"To me it's a historic moment," he said. "We finally set partisan politics aside long enough to look at the good of the state."

But wait. On Thursday -- days before the tax plan is formally approved -- Republicans and an outside anti-tax group launched ads attacking Democrats for the proposal.

Tuscan resort coming to ... Yakima

Work could begin this summer on a $500 million Tuscan-themed village on a ridge east of Yakima, potentially diversifying the economy of an area that already promotes itself as Washington's Palm Springs.

Concentrating growth in towns in order to preserve open space and farmland would be ideal. But planned development is the next best option -- the project already is being compared to Suncadia, a resort community near Ellensburg that targets Seattle refugees.

The Vineyards project would be developed by a group that put together resorts in Crested Butte, Colo. and in Mexico. Eagle Resort Development already mentions the area on its web site.

Why Fairmont isn't quite on top

Fairmont Hotels & Resorts wants to be seen as an "unrivalled global presence." Yet a few recent visits suggest why it's not quite there.

Friday night I stayed at the Fairmont Waterfront, which is the highest-rated of the company's properties in downtown Vancouver. Desk service was professional, the room was comfortable and the city-and-harbor view was great -- all as expected. But when the elevators went out of service at around 10 p.m. -- leaving at least 15 people waiting in the lobby -- there was no explanation. The next morning two of the elevators were still offline. There was no apology and management didn't give the impression that they were especially concerned about the inconvenience.

Similar service at Fairmont's hotels at Whistler and in Seattle has also cost the chain. This is part of the reason why so many in Seattle were concerned when Fairmont took over management of the Olympic Hotel (a replacement Four Seasons is under construction). Don't get me wrong: Fairmont is still a great place to stay, it's just not quite top-of-the line.

Supreme Court rules against timber competition

The U.S. Supreme Court ruled in favor of Weyerhaeuser in a major antitrust dispute, a verdict that makes it harder for small companies to compete against global powerhouse firms.

The case turned on the difference between ruthless competiton and unfair business practices in the Northwest lumber market. The court essentially said that a small Washington mill couldn't prove that Weyerhaeuser put them out of business unfairly by bidding up the price of logs.

The case took second billing Tuesday to another involving a massive ruling against Big Tobacco. But there's hardly a bigger issue for Cascadia and the future of the natural resources industry in the Northwest. The case seems similar to the prosecution of Microsoft during the 1990s and the effects may be equally widespread.

Here's a critique of the court's verdict.

Incentives lure nonstop connection to Paris

Air France will launch the first nonstop flights from Seattle to Paris, a sign that that a package of incentives designed to lure international flights may be paying off.

A nonstop to Paris has been under discussion for years -- I remember reading that it was imminent in a Seattle Weekly article at least a decade ago. Meanwhile Seattle has steadily lost international air connections to Hong Kong, China, Mexico and elsewhere, despite the region's growth as a travel market and even as Vancouver and Portland added flights.

Under a plan approved last week by the Port of Seattle, landing fees for new international air service will be waived during their first year and 75 percent of the fees the following year, according to the Seattle P-I. Facilities charges will be cut 75 percent for each of the first two years, and the Port will contribute $250,000 the first year, $160,000 the second year and $45,000 the third year to a marketing program for the route.

Oregon used a similar marketing program to lure nonstop routes to Mexico, Japan and Germany. Portland beat Seattle to lure Germany flights and has since restored several domestic nonstops. Compared to some of the other financial deals ports do, these incentives are practically a bargain.

Study: B.C. could be energy self-sufficient

British Columbia could produce all the energy it needs within 20 years, according to a study by a Vancouver foundation that promotes environmental business.

The Globe Foundation forecast assumes that B.C.'s population increases by 30 percent by 2025, raising demand for energy by 20 percent. It also assumes higher oil prices and the development of solar, wind, biomass, geothermal and tidal energy resources, plus development of a major dam and coal-gasification infrastructure.

Wind company proposes first turbines in Yakima

A wind farm developer wants to build the first turbine towers in Yakima County in order to test the potential for power generation there.

The possibility of turbines in the wind-swept Rattlesnake Hills is the latest move to find resources that could meet the state's requirement for more renewable energy. Yet it's unclear how the economics of the project will pencil out and how much potential impact it would have on the area.

Sonics want more money than the arts

If libraries, the opera hall, symphony hall and sculpture garden can all be built with mostly private money, why not a new stadium for the Sonics, asks Danny Westneat. "Maybe it's because the business of basketball is simply broken. It can't survive without being a ward of the state."

Surely the Sonics' opening request for $300 million in state-authorized taxes last week was too much. Yet the economic benefit from a new stadium makes some public investment worthwhile. As the column above suggests, the real question is what's the appropriate portion? Maybe 30 percent of the total cost?

Don't overlook regional trade

The booming trade between Cascadia and China is important and regularly grabs headlines. But that shouldn't make the key trade across the Canadian border an afterthought. See yesterday's story in The Oregonian: "Canada remains Oregon's No. 1. foreign customer for a fifth straight year."

Imagine if trade within the region got media and political attention commensurate with its economic importance.

Imports may squeeze regional timber industry

As if the region's timber industry weren't under enough pressure, with slumping demand from housing dragging wood prices lower, some home builders are eyeing new supply from Europe and Russia.

Looking for new suppliers is a consequence of the recently signed U.S.-Canada lumber agreement, which imposes fees and quotas on softwood exports to the U.S. when prices fall below a certain point. Builders are showing opposition to the agreement by making business ties elsewhere, according to a rare A2 story on the industry in the Wall Street Journal (subscription required):

Jerry Howard, chief executive of the National Association of Home Builders, says the agreement will unfairly raise prices and add volatility to supply, and it is forcing his industry to look for new sources of lumber.

'If I don't get the price of milk at one store that I want, I go to another store," says Mr. Howard, who traveled to Sweden and Russia last fall to begin courting lumber suppliers there.

The group's initiative is the latest salvo in a decades-long dispute. In past years, the trade group had pushed for an end to U.S. import duties on Canadian wood and urged Canada to continue fighting those duties.

After the U.S. and Canada signed their lumber accord last year, Mr. Howard says, the builders "were upset that the Canadians caved in. We supported them the best we could. We continue to tell them we prefer to do business with our neighbors to the north. But we also want to put our members in the best possible business climate."

When the dispute flared up in the past, Mr. Howard said, the group responded by encouraging members to use alternative framing materials, such as steel. The latest strategy is to try to diversify their sources of lumber.