Comprehensive Economic Development Strategy Panhandle Area Council Idaho s Region I [Type here]

Transcription

1 Panhandle Area Council Idaho s Region I Proudly serving Benewah, Bonner, Boundary, Kootenai and Shoshone Counties [Type here]

2 UPDATE For Region 1 of Northern Idaho Proudly serving Benewah, Bonner, Boundary, Kootenai and Shoshone Counties Prepared by Panhandle Area Council, Inc N. Airport Drive Hayden, ID

3 Table of Contents Executive Summary... ES Update... ES-1 Chapter 1 Building the Pathways Guiding Principles Regional Vision Chapter 2 The Region s Pathways Dynamic Economies, Empowered People, Vital Communities Goals o Objectives and Strategies: Education Healthy Communities Transportation Entrepreneurship/Economic Empowerment Chapter 3 Technical Report Where are we today as a region? Background o Economy o Population o Geography o Natural Resources o Environment o Workforce Development and Use o Education o Transportation Access Industry Clusters Community Survey SWOT Analysis Data Overview Panhandle Area Council i

4 Chapter 4 Regional Action Plan Barriers/Opportunities Action Plan Chapter 5 The Region s Disaster Resiliency The Region s Disasters Disaster Planning for Economic Recovery Economic Development District Role Chapter 6 Performance Measures Chapter 7 Regional CEDS Development Process Panhandle Area Council ii

5 List of Tables 1. Civilian Labor Force Northern Idaho Workers on Payroll in District, by Age, Educational Attainment of the Population 25 Years and Over, Northern Idaho Size of Private-Sector Employers Economic Indicators for Northern Idaho , Northern Idaho Population, Northern Idaho Population, July 1 Estimates Percent of Population in Age Group Median Age, Population of Northern Idaho by Age Population Per Square Mile Population by Hispanic Origin and Race, Northern Idaho Climate Data Land Use North Idaho Species List , County Educational Attainment of Population 25 Years & Over, Regional Educational Attainment of Population 25 Years & Over Top Northern US Ports of Border Crossing/Entry (Yearly) Ranked by Rail and Loaded Containers, Share of Employment by Region Silver and Gold Prices Community Planning & Economic Development Goals Community Future Development , Region I SWOT Top Three Attributes Regional Barriers and Opportunities/Investments , Regional Action Plan North Idaho Emergency Management Contacts , Economic Development District Professional Role in Emergency Management , Panhandle Area Council CEDS Strategy Committee Members Panhandle Area Council iii

6 List of Figures 1. Idaho Region I Map... ES-1 2. Unemployment Rate, Unemployment Rates by County, Northern Idaho Unemployment Benefits Initial Claims, Composition of Employment in Northern Idaho County Population Growth Since Regional Population Growth Since Annual Population Estimates Land Ownership The Funnel for Northern-Tier Rail Lines Share of Employment by Region Community Survey Top Industry Sectors Community Survey Needs and Opportunities Panhandle Area Council iv

7 Executive Summary The Panhandle is bordered to the north by British Columbia, Canada; to the east by Montana; to the west by Washington; and to the south by Idaho s Latah and Clearwater Counties. The Panhandle Area Council, Inc. (PAC) is a non-profit organization, incorporated in 1971 in the State of Idaho. It is structured to promote and assist economic development; fostering a stable and diversified economy within the five northern counties of Idaho. The Panhandle Region includes the counties of Benewah, Bonner, Boundary, Kootenai and Shoshone, 35 cities and two tribal nations within the Panhandle of Northern Idaho. as well as the Coeur d Alene and Kootenai Indian Tribes. PAC is recognized in different capacities by various state and federal agencies, as listed below: Economic Development District designated by the U.S. Department of Commerce, Economic Development Administration (EDA) Certified Development Corporation (CDC) certification by the U.S. Small Business Administration Associate Office designated by the U.S. Department of Commerce for International Business Resources Private Sector PAC houses a business incubator center designed to assist start-up companies The (CEDS) falls under the authority of Section 302 of the Public Works and Economic Development Act of 1965 (42 USC 3162) and EDA at 13 CFR part 303. This CEDS Update focuses primarily on Chapter 2: The Region s Pathways. The CEDS Committee spent considerable time updating the strategies to better fit today s social and economic conditions. Additional revisions include: The table numbers have been removed from Chapter 2; therefore, the List of Tables and each Table within the document has been revised. The Action Items in Chapter 4 have been updated to reflect what has been completed. Update the contacts for the county offices of emergency management in Chapter 5. Update to the Strategy Committee Members in Chapter 6. As we roll into the coming year, the action items will be overhauled along with Chapter 3: Technical Report. Figure 1. Idaho Region I Map Panhandle Area Council ES-1

8 Chapter 1 Building the Pathways Guiding principles for development of this CEDS follow the National Association of Development Organizations (NADO) Seven Principles of CEDS Standards of Excellence: Build resilient economies and communities by focusing and targeting strategies on the existing and potential competitive advantages; Foster a collaborative framework to strategically align public and private sector investments; Use modern scenario, data and analysis tools and planning techniques that provide policy makers, stakeholders and the public with evidence-based and factual based information; Transform the CEDS into a strategy-driven planning process focused on regional visioning, priorities setting and performance outcomes; Promote and support peer reviews and exchanges across EDD boundaries, enhancing organizational resources and positioning the CEDS as a building block for the State of Idaho and local strategies; Communicate in a compelling and modern communication style, including use of online media; and Engage the public, private, nonprofit and educational sectors, along with the general public in the development and implementation of the CEDS. PAC shares the vision and similar goals as the other five Economic Development Districts in the State of Idaho. As a unit, the Districts celebrate each region individually, and the State of Idaho as a whole, collaborating on accelerating economic development and diversification. Vision Promote the continued prosperity, progress and productivity of Northern Idaho by creating thriving, connected, sustainable and evolving people, communities and economies. We seek Dynamic Economies by creating the environment for thriving Industries that are diverse, sustainable, geographically dispersed and globally competitive. We seek to Empower People by fostering a culture that enables people to lead productive, prosperous and meaningful lives. We seek Vital Communities by enhancing our communities characteristics, strengths and assets to improve economic competitiveness. The goals support progress in education, transportation, entrepreneurial resources and community infrastructure which provides beneficial results for the three Pathways: Dynamic Economies, Empowered People and Vital Communities. Panhandle Area Council 1-1

9 Chapter 2 The Region s Pathways Merriam-Webster defines Path as 1: a trodden way ; 2: a track specially constructed for a particular use ; 3a : course, route, b : a way of life, conduct, or thought ; 4a : the continuous series of positions or configurations that can be assumed in any motion or process of change by a moving or varying system, b : a sequence of arcs in a network that can be traced continuously without retracing any arc The Region s Pathways are categorized into three broad goals Dynamic Economies, Empowered People and Vital Communities. Each are entwined with each other, following a course of process of change to assist in strengthening the region s economy. Within the goals are four main objectives that align with statewide areas of economic development focus: Education and Workforce Development; Entrepreneurship/Economic Empowerment; Transportation; and Livable Communities. The PAC CEDS Committee refined the Objectives and Strategies to coordinate regional resources to achieve the greatest impact. Trail of the Hiawatha, Shoshone County PATHWAYS GOALS DYNAMIC ECONOMIES EMPOWERED PEOPLE VITAL COMMUNITIES Creating the environment for thriving industries that are diverse, sustainable, geographically dispersed and globally competitive. Fostering a culture that enables people to lead productive, prosperous and meaningful lives. Enhancing our communities unique characteristics, strengths and assets to improve economic competitiveness. Panhandle Area Council 2-1

10 GOAL: DYNAMIC ECONOMIES Creating the environment for thriving industries that are diverse, sustainable, geographically dispersed and globally competitive. Education and Workforce Objective: A knowledge based economy requires the cultivation and preparation of the workforce Strategy Task Partners Encourage and support collaboration between industry and education to develop a workforce prepared for local jobs. Convene representatives from higher education to facilitate a community/industry educational needs discussion and develop strategies and an action plan. K-2, Higher Ed., BEDC, BCEDC, CDA EDC, SVEDC, Timber +, PAC, Private Foundations Increase work base learning and entrepreneurship opportunities. Business & Industry, NIC, UI Entrepreneurship/Economic Empowerment Objective: An ever-changing economic climate demands the discovery of new ways of combining resources Strategy Task Partners Convene regional economic development representatives on a regular basis to discuss regional strategies and improve collaboration. Hold a regional meeting after the quarterly Inland Northwest Partners Meeting PAC, BEDC, BCEDC, CDA EDC, SVEDC, Timber + Work toward increasing trade opportunities with Canada Training and mentoring that benefits multiple industries in the region requiring the same skill sets. Connect with Canadian Trade Office and identify regional partnership opportunities. Work with the banking system to develop an easy way for businesses to accept Canadian dollars. Work with business and industry to provide training and mentoring opportunities benefitting multiple industries requiring the same skill sets. CDA EDC PAC, BEDC, BCEDC, CDA EDC, SVEDC, Timber + NIC Workforce Training Support development of local food and agriculture systems/networks/ecosystems. Increase and maintain commercial kitchens in the region. PAC, SVEDC, Timber + Identify transportation and food storage options Inland NW Food Network Panhandle Area Council 2-2

11 Transportation Objective: Region 1 is a hub for commerce, vital to the global economy Strategy Task Partners Help support expansion and safety improvements of US 95 to four total lanes from Lewiston north to the Canadian Border. Solicit letters of support for public input for future development. KMPO Cultivate partnership between transportation and economic development agencies and businesses. Interface with ITD and hold annual or biannual meeting with KMPO and county transportation groups (KCATT, BCATT, etc.) Cities, Counties Identify strategic infrastructure and investment needs for the airport, rail and highway systems. Work with each airport, highway district and rail to identify economic development related needs PAC Livable Communities Objective: Livable communities invest in local products, resources, partnerships, talent and entrepreneurship to strengthen the economic base of a community Strategy Task Partners Strengthen community events that have a positive economic impact, and improved community livability. Map existing cluster ecosystems and identify new and developing cluster needs, opportunities and obstacles. Maintain and expand annual or bi-annual economic forums with a focus on healthcare, aerospace and other emerging technologies to help grow local businesses and strengthen existing clusters. Identify gaps of local employers and representatives of industry clusters through a mapping exercise I-90 Aerospace Expo/Conference, Think Big Conference, What s Happening Up North; Future of Work Conference; Business Summit; and no name yet something for healthcare EMSI, Labor, PAC, WSU Data Center Panhandle Area Council 2-3

12 GOAL: Empowered People Fostering a culture that enables people to lead productive, prosperous and meaningful lives. Education and Workforce Objective: Lifelong learning is recognized as critical to empowered people Strategy Task Partners Strengthen our primary and secondary education and promote early, higher and technical education. Support connections and partnerships between secondary and post-secondary education for regional gaps. (e.g., dual enrollment, STRAP, college bound programs) Support diversity of relevant lifelong learning opportunities throughout the region. Promote existing initiatives/programs at an accessible location to all. United Way, Jobs + Action Committee, Libraries NIC, UI Extension, Cities, Counties, North Idaho Education Partnership, Libraries Entrepreneurship/Economic Empowerment Objective: A comprehensive entrepreneurial environment must be established to create, develop, and implement ideas Strategy Task Partners Promote entrepreneurial business start-up development and second stage business growth. Identify existing organizations SBDC, PAC, VC s, Angels, NIC, UI Identify seed capital sources, tax incentives and other financial resources such as Angel funding, Venture Capital. Identify educational and training programs to keep entrepreneurs and business owners identify personal and business growth opportunities. Panhandle Area Council 2-4

13 Transportation Objective: Transportation options for all people Strategy Task Partners Support easier access to jobs, shopping, services & recreation. Promote, expand/improve sustainable public transportation options in the region. Cities, Counties, Businesses, EDC s Promote development with access to transportation. Cities, Counties, Businesses, EDC s Livable Communities Objective: Fostering a culture that enables people to lead productive, prosperous and meaningful lives Strategy Task Partners Investigate opportunities to engage growing retirement population in community development and education. Hold a forum for retirees to get engaged and recharge SCORE, AARP, Elder Hostel Support financial investment in crisis centers, mental health clinics, community centers and other 24/7 medical support for all community members. Engage policy makers in supporting funding Hold forums on critical health issues KH, Heritage Health, St. Vincent d Paul, UGM, Medical Centers, PHD, Insurance Companies, Cities Create workspace, pathways and connections for innovators, entrepreneurs and thought leaders to bring ideas to fruition and new products to market. Support groups involved in healthy living initiatives. Continue the momentum Raise awareness by including programs in Chamber directories/websites. (Innovation Den, ehub, Gizmo, Fab Lab, Business Center, Inland Northwest Food Network) KH, PHD, HH, Realtors, Chambers, Kroc, Community Centers Panhandle Area Council 2-5

14 GOAL: Vital Communities Enhancing our communities unique characteristics, strengths and assets to improve economic competitiveness. Education and Workforce Objective: Education is crucial in meeting the needs of residents, industries, and governments Strategy Task Partners Provide support to STEAM-related and other IT programs in our schools for regional gaps. Identify the gaps and prioritize UI Extension, NIC, Workforce Training Center Entrepreneurship/Economic Empowerment Objective: Strong economies are diverse and value human and natural capital Strategy Task Partners Attract and retain educated and trained youth. Create market for youth to want to be here. What are the job opportunities? Counselors Diversify the economy by expanding the types of businesses in the region and regional alliances. CDA EDC, PAC Transportation Objective: Economic opportunities are enhanced when transportation infrastructures can address mobility needs and facilitate access to resources and markets Strategy Task Partners Pursue transportation funding opportunities associated with expanding new or existing businesses. Engage business owners to meet with transportation leaders. Cities, Counties, Businesses, EDC s, LHTAC Support development of multi-modal communities. Work with communities to develop multi-modal transportation, i.e., foot and bike paths Cities, Counties, Businesses, EDC s, Trail Groups Promote bicycle & pedestrian safety through education. Panhandle Area Council 2-6

15 Livable Communities Objective: Livable communities provide service options and support infrastructure to contribute to economic vitality Strategy Task Partners Support initiatives and projects that help people remain active and engaged throughout their lives regardless of age and income levels. Participate in health district s community health assessments and assist with implementation strategies. Concentrate on expanding local and regional walking paths, trail networks, and bike lanes. Cities, Counties, Businesses, EDC s PAC, BEDC, BCEDC, CDA EDC, SVEDC, Timber + Start addressing economic resiliency in disaster recovery. Identify economic impacts of transfer payments PAC, BEDC, BCEDC, CDA EDC, SVEDC, Timber +, LEPC s Increase access to broadband service through public/private partnerships and infrastructure funding. Encourage communities to identify workforce housing needs and solutions. Investigate USDA Financing Track progress by holding forums every 5 years Cities, Counties, Businesses, EDC s, USDA Cities, Counties, Businesses, EDC s, IHFA, USDA Panhandle Area Council 2-7

16 Chapter 3 Technical Report Background For thousands of years nations of tribal people lived in family bands along the lakes and rivers of northern Idaho. The Kootenai Indians lived to the north near what is now the U.S.-Canadian border. The Coeur d Alene Indian Tribe occupied much of the land between the Kootenai and Nimipu. As friction grew between settlers and the tribes, General William Sherman toured the West and recommended to Congress that a new military fort be constructed on the northern shore of Lake Coeur d Alene. The building of Fort Coeur d Alene began in spring 1878 as a small pioneer village later to be the city of Coeur d Alene was established. Mission of the Sacred Heart, Cataldo Gold and silver were discovered at the same time in the Silver Valley, today s Shoshone County, and towns like Murray, Prichard and Eagle City sprang up overnight. Kellogg was established in 1892 and named after Noah Kellogg, founder of The Bunker Hill Mine. Wallace became the hub of one on the richest mining districts in the world, and Bunker Hill later became the one of the largest employer in the state during the late1970s. In August 1981, the mine closed, idling 2,100 miners. Even though it operated for just eight months that year, the mine pumped nearly $106 million into the Idaho economy in After the U.S. Geological Survey highlighted the region s abundant timber resources in the late 1800s, several eastern lumber companies began building empires in the Idaho Panhandle. In 1871 Frederick Post decided a falls on the Spokane River was the ideal location for a sawmill, negotiated a treaty with Chief Andrew Seltice of the Coeur d Alene Tribe and opened the area s first commercial mill in The settlement of Post Falls grew up around the mill. These major eastern companies purchased vast tracts of timber and built mills, railroads, logging camps, company stores and even towns. By 1910 thousands of people had swarmed into the region. Coeur d Alene grew from a small pioneer town of 500 to a modern city of 7,000. At the confluence of the St. Maries and St. Joe Rivers, St. Maries became a steamboat stop and major distribution center for raw logs. Waterfront towns like Sandpoint, Harrison, St. Maries, Post Falls, Priest River, Bonners Ferry and Spirit Lake became bustling timber centers, and many other communities in the timber-rich Panhandle began as logging centers. First lumber mill, Post Falls Panhandle Area Council 3-1

17 The village of Bayview was the terminus for lake steamers bringing lumber and lime from other points on the lake. After the start of World War II, Farragut Naval Training Center was built just west of Bayview. The second largest training center in the country, it processed 293,381 sailors in one 15-month period. After the war the center was decommissioned and given to the State of Idaho for a state park. Economy The growth of northern Idaho s labor force has kept pace with population growth. The civilian labor force grew 47 percent from 72,355 in 1993 to 106,331 by 2013 and by 37 percent from 2003 to During the same 30-year period, the nation s labor force grew only 20 percent while the state grew by 41 percent. The recession halted the growth of the labor force from 2008 to The aging population has slowed growth of the labor force in Benewah, Boundary and Shoshone counties over the past three decades. More recent economic conditions have slowed growth of the labor force in Bonner and Kootenai counties. Table 1. Civilian Labor Force Area Growth ( ) Benewah 3,892 3,913 3,938 3,923 0% Bonner 11,192 14,481 18,460 19,040 31% Boundary 3,505 3,965 4,183 4,604 16% Kootenai 27,825 43,245 61,375 72,611 68% Shoshone 6,430 6,751 5,454 6,152-9% Northern Idaho 52,844 72,355 93, ,331 47% As mentioned earlier, the double dip recession of the early 1980s coupled with the closure of the Bunker Hill mine and smelter caused the region s unemployment rate to reach its historic high in 1982 at 17.4 percent. The unemployment rate in Shoshone County, where the mine is located, reached nearly 30 percent in Since that time, the regional unemployment rate has trended with the U.S. and state, and at times, has dipped below the nation. Northern Idaho hit the lowest rate of unemployment in 2007 at 3.6 percent when the economy was in full swing. Some of the more rural counties still maintain a resource-based economy such as logging in Benewah County, mining in Shoshone County and hops, tree and nursery farms in Boundary County. The consistent fluctuating seasonal employment results in higher unemployment compared to the other counties in the region and state. Following the housing market crash in 2007, the region s timber-dependent counties suffered great production losses resulting in a 39 percent decline in wood product manufacturing and 48 percent in logging a total of 1,408 jobs. Over half the jobs lost through the recession were in construction nearly 4,000 jobs a 49 percent decline. Panhandle Area Council 3-2

18 Kootenai County consistently has the lowest unemployment rate in the region. This most populous county in the region encompasses the Coeur d Alene Metropolitan Statistical Area and provides 72 percent share of the region s jobs. Approximately, 11 percent of surrounding counties working residents commute into Kootenai County for work. Figure 2. Unemployment Rate, Figure 3. Unemployment Rates by County, Northern Idaho State of Idaho United States Benewah Bonner Boundary Kootenai Shoshone The number of initial claims those who have filed for unemployment benefits skyrocketed during the recession. Large increases in claims draw attention because they suggest looming employment weakness, which could spread throughout the economy. In the depths of the recession, the number of initial claims in northern Idaho hit an annual record 43,922 in Since the peak, initial claims have dropped 56.5 percent to 19,086 in The downward trend continues with hopes of returning to pre-recession levels in Figure 4. Northern Idaho Unemployment Benefits Initial Claims, ,922 40,510 24,936 17,676 17,153 17,607 17,574 30,616 32,692 26,042 19, Panhandle Area Council 3-3

19 The region has experienced an exodus of a younger, working age population. The share of workers age 14 to 24 shrunk from 18.2 percent in 1998 to 16.2 percent by In conjunction, the rate at which they participate in the labor force has also been falling. While the share of workers age 25 to 44 has shrunk from 49.1 percent in 1998 to 40.6 percent in 2013 the age group 45 and older has risen from 32.7 percent to 43 percent during the same period of time. With these younger workers leaving, and as retirees continue to flock to the area, the region has a potential labor force shortage on hand. Table 2. Northern Idaho Workers on Payroll in District, By Age, Total 61,213 75, % 100.0% years 3,271 2, % 3.5% years 4,184 4, % 6.1% years 3,683 5, % 6.7% years 13,537 15, % 20.8% years 16,524 14, % 19.8% years 13,380 16, % 21.5% years 5,399 12, % 17.1% years 1,235 3, % 4.6% For Fiscal Year Ending September 30 of Year Indicated Source: U.S. Census Bureau Quarterly Workforce Indicators The workforce in northern Idaho has more technical training and education than the state and particularly over the nation. However, the number of Bachelor s degree holders or higher are lower in comparison. Young males age 25 to 34 particularly stand out with low levels of Bachelor s degree or higher. Table 3. Educational Attainment of the Population 25 Years & Over, 2011 Northern Idaho State of Idaho United States Female Male Female Male Female Male 25 to 34 years High school graduates 94.6% 92.2% 91.0% 88.3% 89.4% 85.6% Some college but no bachelor s 43.8% 39.7% 41.5% 37.0% 33.2% 30.3% Bachelor's degree or higher 21.4% 14.3% 25.5% 21.5% 35.5% 27.7% 35 to 44 years High school graduates 94.9% 91.7% 90.6% 88.2% 89.0% 86.0% Some college but no bachelor s 39.9% 38.4% 37.7% 34.7% 32.3% 28.3% Bachelor's degree or higher 28.0% 20.7% 28.9% 27.0% 33.8% 29.8% 45 to 64 years High school graduates 92.1% 91.6% 91.3% 89.0% 88.7% 86.9% Some college but no bachelor s 42.0% 36.8% 39.0% 34.8% 32.0% 28.5% Bachelor's degree or higher 20.7% 23.4% 24.3% 27.7% 28.1% 29.5% Panhandle Area Council 3-4

20 Overall, northern Idaho s economy has grossly diversified over the past few decades, shifting from a service-based economy to a more diversified economic base including health care and more diverse retail and manufacturing sectors. Figure 5. Composition of Employment in Northern Idaho 1993 Health Education Care and al Services Social 7.4% Assistance Accommo 9.5% dation and Food Services 10.8% Retail Trade 15.5% Manufact uring 12.2% 2003 Accommo dation and Food Services 10.2% Manufact uring 10.3% Education al Services 7.4% Retail Trade 15.2% Health Care and Social Assistance 13.0% 2013 Manufact uring 10.0% Accommo dation and Food Services 10.8% Education al Services 6.8% Retail Trade 15.5% Health Care and Social Assistance 14.9% Panhandle Area Council 3-5

21 Table 4. Northern Idaho Size of Private-Sector Employers Kootenai Health hospital and the Coeur d Alene Indian Tribe are the largest employers in northern Idaho. However, over the last decade, there have been several large and small companies that have emerged as fastgrowing, leading economic growth engines for the regional economy. In some cases, these companies have created small industry clusters around the region because of their similar nature. Number of Employers Percent of Payroll TOTAL 4,764 7, % 100% Under 5 employees 2,808 4,511 59% 64% 5 to 9 employees 974 1,153 20% 16% 10 to 19 employees % 11% 20 to 49 employees % 6% 50 to 99 employees % 2% 100 to 249 employees % 1% 250 to 499 employees % 0% 500 or more employees 1 4 0% 0% Table 5. Economic Indicators for Northern Idaho Year Growth Population 144, , , , , % People per square mile % Unemployment rate percentage % Civilian labor force 72,355 88,287 93, , , % Employed residents 65,814 80,802 86,748 99,962 97, % Unemployed residents 6,541 7,485 6,662 6,381 8, % Total nonfarm payroll jobs * 50,148 62,718 68,843 82,598 76, % Average pay * $28,505 $30,336 $31,720 $33,499 $33, % Private-sector employers * 4,972 6,176 6,791 8,213 7, % Private-sector payroll jobs * 46,541 58,173 63,885 77,518 71, % Private-sector average pay * $28,280 $29,853 $31,173 $32,967 $33, % Panhandle Area Council 3-6

22 Table 5. Economic Indicators for Northern Idaho (Continued) Year Growth Per capita personal income $25,042 $26,861 $29,868 $35,091 $34, % Percent of population living below poverty ** 14.3% 13.7% 12.3% 12.7% 15.0% 5.2% Number of nonfarm proprietors 16,863 21,568 23,411 31,029 32, % Average nonfarm proprietors' income $19,846 $17,839 $24,177 $19,082 $15, % Number of farm proprietors 1,452 1,786 2,285 1,978 1, % Average farm proprietors' income $12,556 -$104 $3,955 $2,447 $4, % Current transfer receipts of individuals from gvt (000) $556,107 $710,654 $980,748 $1,254,748 $1,611, % Income maintenance benefits (000) $43,969 $52,136 $66,320 $92,915 $146, % Retirement & disability insurance benefits (000) $286,573 $353,939 $451,033 $579,969 $720, % Supplemental Nutrition Assistance (food stamps) (000) $14,384 $11,345 $12,466 $13,350 $49, % Supplemental Security Income benefits (000) $11,042 $15,668 $18,530 $21,628 $25, % Unemployment insurance compensation (000) $33,924 $31,668 $56,561 $30,539 $60, % Veterans Benefits (000) $20,509 $24,366 $38,623 $48,956 $66, % Education and Training Assistance (000) $5,997 $8,580 $13,539 $16,219 $27, % Medical Benefits (000) $164,172 $239,140 $353,376 $484,893 $587, % Source: Idaho Department of Labor, U.S. Census Bureau, U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis * Data from 4th Quarter 2012 to 3rd Quarter 2013 All dollars amounts adjusted for inflation and expressed in 2013 dollars. Panhandle Area Council 3-7

23 Population Population growth has been reflective of the strength of the region s economy but each county in northern Idaho has their own unique socio-economic climate. The population growth in northern Idaho continues to outpace the state and nation and particularly through the 1980s and 2000s when annual growth rates reached as high as five percent neither Idaho nor the nation has experienced such substantial annualized growth. Population grew 42.7 percent throughout the 1980s and slowed to 6.6 percent in the 1990s and experienced another burst in population growth in the 2000s growing 40.8 percent. Note that all population data comes from the U.S. Census unless otherwise noted. Table 6. North Idaho Population Benewah 6,230 8,292 7,937 9,171 9,285 9,044 Bonner 15,560 24,163 26,622 36,835 40,877 40,699 Boundary 6,371 7,289 8,332 9,871 10,972 10,853 Kootenai 35,332 59,770 69, , , ,265 Shoshone 19,718 19,226 13,931 13,771 12,765 12,690 Northern Idaho 83, , , , , ,551 % change from previous decade Kootenai County has been and continues to be the hub of the region. The county led the region in population growth through the expansionary periods. The county s population grew nearly 70 percent in the 1980s and slowed to 17 percent throughout the 1990s and expanded again in the 2000s by 56 percent from the previous decade. As its population continued to expand, the economy continued to diversify. Figure 6. County Population Growth Since 1973 Figure 7. Regional Population Growth Since % 200% 150% 100% 50% 0% -50% Benewah Bonner Boundary Kootenai Shoshone 160% 140% 120% 100% 80% 60% 40% 20% 0% North Idaho Idaho United States Panhandle Area Council 3-8

24 Bonner County s population mirrored that of Kootenai County but to a lesser degree, growing 55 percent in the 80s, slowing to 10 percent the next decade and growing 38 percent by the 2000s. Bonner County s economic base has changed drastically over time. Founded upon the foundation of timber it is now a place where entrepreneurs and their innovative spirit are welcomed with open arms. The high-tech industry is growing in Sandpoint and outlying areas are taking on the region s aerospace industry nearly single-handedly. The population in Benewah County has remained stagnate since 1973 along with little fluctuations in changes in its economic base. Logging and wood product manufacturing founded this area and has continued to be Benewah County s mainstay. More recently, the boom years that Idaho and the rest of the nation experienced in the mid-2000s provided little employment and population growth in Benewah County. As a result, the lows were not as heavily felt through the depths of the most recent recession. Population in Boundary County soared in 1984 growing six percent in one year. Although, the timber industry experienced slight growth during that time, employment gains did not follow until 1987 when Elk Mountain Farms first planted hops for parent company Anheuser-Busch. Elk Mountain has become the world s largest hop farm at 1,800 acres. Population surged again in the 1990s when retirees started migrating to the area. Employment in construction over doubled from employing only 85 in 1990 to 237 by Although population growth has subsided, it continues to see such patterns. The mining-dependent economy of Shoshone County has left the Silver Valley with a declining population and long-term economic decline. The closure of the Bunker Hill mine and smelter in 1981 has haunted the area ever since. One of Idaho s largest employers throughout the 1970s, the Bunker Hill closure left 2,100 mine employees without a job and another 2,100 non-mine jobs were also lost as a result. The county continues to experience declines in population and struggles to produce non-mining related jobs. Table 7. Northern Idaho Population, July 1 Estimates Following the double dip recession in the early 1980s, the region s population and job growth started rebounding in the late 1980s as tourism brought a new perspective to the region s economy. The construction of the Coeur d Alene Resort and Templin s Benewah , , , , ,044 Hotel in Post Falls in 1986 along with the opening of Silverwood Theme Park in 1988 Bonner 39,576 40,738 40,809 40,824 40,699 put Idaho s tourism industry on the map. In more recent years, the population of Boundary 10,303 10,754 10,819 10,814 10,853 northern Idaho grew 21.3 percent between 2000 and 2013 to 217,551 while the state Kootenai 125, , , , ,265 grew 24 percent, and both grew twice as fast as the nation. Between 2000 and 2013, the region s largest county, Kootenai, grew 31.7 percent to 138,494 while the second Shoshone 12,912 12,949 12,862 12,669 12,690 largest county, Bonner, was up 10 percent to 40,877. Benewah and Shoshone counties experienced decline in population. Northern Idaho 197, , , , ,551 The largest cities are Coeur d Alene at 46,402 in 2013, Hayden at 13,681, Sandpoint at 7,577, Rathdrum at 7,090, Bonners Ferry at 2,473, St. Maries at 2,333, Dalton Gardens at 2,361, Kellogg at 2,117 and Priest River at 1,720. Ponderay was the fastest-growing city in the region, expanding 73 percent from 638 people in 2000 to 1,111 by Post Falls followed at 63 percent from 17,799 in 2000 to 29,357 in Panhandle Area Council 3-9

25 Northern Idaho Idaho Figure 8. Annual Population Estimates 220, , , , , , , , , , ,000 1,650,000 1,600,000 1,550,000 1,500,000 1,450,000 1,400,000 1,350,000 1,300,000 1,250,000 1,200,000 Considering that northern Idaho s population is among the oldest in the state, it is no surprise that the fastest growing population groups have been 65 and older. The older population is driving the growth in health care and some services while at the same time signaling a shrinking labor force and pose special problems for social service providers. Northern Idaho Idaho Table 8. Percent of Population in Age Group Table 9. Median Age, 2012 Northern Idaho State of Idaho United States Under 15 years 29.2% 18.7% 30.4% 22.2% 28.5% 19.3% 15 to 29 years 21.3% 17.4% 24.1% 20.5% 24.1% 20.7% 30 to 44 years 16.4% 17.4% 15.9% 18.9% 17.0% 19.5% 45 to 59 years 17.4% 21.3% 15.9% 18.8% 16.3% 20.5% 60 to 74 years 11.5% 18.2% 9.9% 13.9% 10.4% 13.7% 75 years & over 4.2% 7.0% 3.9% 5.7% 3.8% 6.2% Shoshone 47 Bonner 46 Benewah 45 Boundary 43 Kootenai 39 United States 37 Idaho 35 Table 10. Population of Northern Idaho by Age Change Total 83, , % Under 15 years 24,262 40, % 15 to 29 years 17,741 37, % 30 to 44 years 13,647 37, % 45 to 59 years 14,438 46, % 60 to 74 years 9,589 39, % 75 years & over 3,534 15, % Table 11. Population Per Square Mile County Square Miles Persons per Square Mile Benewah Bonner 1, Boundary 1, Kootenai 1, Shoshone 2, Panhandle Area Council 3-10

26 As illustrated in the table below, the population of the region is not as racially or ethnically diverse as the U.S. population. Native Americans comprise 1.4 percent of the region s population. There are two tribal reservations situated in northern Idaho. The Kootenai Tribal Reservation is located to the north near the U.S.- Canadian border and the Coeur d Alene Tribal Reservation occupies land in southern Kootenai and western Benewah counties. Table 12. Population by Hispanic Origin and Race, 2013 Geography Origin and Race Northern State of United Idaho Idaho States Hispanic 3.8% 11.8% 17.1% White, Not Hispanic 91.6% 83.1% 62.6% Black, Not Hispanic 0.3% 0.7% 12.4% Native American, Not Hispanic 1.4% 1.1% 0.7% Asian & Pacific Islander, Not Hispanic 0.8% 1.4% 5.3% Two or More Races, Not Hispanic 2.1% 1.8% 2.0% Encompassing approximately 4.9 million acres, the region is substantially forested and mountainous, with many beautiful lakes, rivers and streams. The natural features make for some of the nation s best fishing and hunting, while winters provide many opportunities for skiing (downhill and cross-country) and snowmobiling. The Panhandle is ranked third in population and fifth in geographic size among Idaho s six regions. The area includes many mountain ranges including the Selkirks, Cabinet, Bitterroot and Coeur d Alene Mountains. The primary rivers include the St. Maries, St. Joe, Coeur d Alene, Spokane, Kootenai, and Pend Oreille. Glacial activity helped form the Priest Lake, Pend Oreille Lake and Coeur d Alene Lake. The Purcell Trench is home to some of the richest agricultural soil in the region. The regional climate can vary dramatically from one area to the next. Boundary County has both the lowest and also the highest elevation in the region. The following chart depicts the average temperatures and precipitation data for recorded areas by the National Oceanic and Atmospheric Administration (NOAA). Note that the location where the data is recorded is not necessarily representative of the entire county. Table 13. Northern Idaho Climate Data County Location Average Annual High Temperature Average Annual Low Temperature Average Annual Rainfall Average Snowfall Benewah St. Maries 58.1 o 36.0 o Data not available Bonner Sandpoint 56.6 o 34.4 o Boundary Bonners Ferry 58.2 o 35.4 o Kootenai Coeur d Alene 57.6 o 39.1 o Shoshone Kellogg 58.4 o 34.9 o Data not available Source: NOAA, September 5, 2014 Panhandle Area Council 3-11 Annual

27 Understanding the region s economy requires understanding factors related to geography, land use, distance and urban development. Land use patterns and the natural environment of a region changes slowly, but has an impact on what is possible and suitable in terms of economic development opportunities. Land use and geography of the region go hand-in-hand with the ability to diversify the region s economy. It is quite difficult in some areas of the region to increase business activity as over half of the land in the region are state and federal lands. Table 14. Land Use Type Square Miles Percent Agricultural Cropland Barren Developed/Low Intensity Developed/Med Intensity Developed/High Intensity Developed/Open Space Evergreen/Deciduous Forest 6, Fallow/Idle Cropland Herbaceous Wetlands Open Water Perennial Ice/Snow Shrubland 1, Woody Wetlands Figure 9. Land Ownership Private: 36% State: 9% Other: 5% Federal: 50% Natural Resources Forest lands, agricultural lands, mining and waterways serve as the primary natural resources for the region. There are several unique landscapes in the region. The vegetation, climate, land use and wildlife are diverse and somewhat dependent on topography. The diversity of natural resources plays an important role necessary for the public and private sectors plan for existing and future development of the region. The previous section on Geography and following Environment sections provide more information on natural resources. Detailed information can be obtained from the Comprehensive Plans for each county in the region. Environment More than a century of mining in the Silver Valley resulted in mine tailings deposited throughout the valley floor and toxic emissions from smelting activities resulted in widespread metals contamination in the Coeur d Alene River Basin. In 1983 the U.S. Environmental Protection Agency (EPA) designated a 21-square mile area, aka the box as a nationally-recognized Superfund Site. Cleanup and ecological restoration around the lead smelter have included the removal of leadcontaminated soil from lawns and parks, the containment of tons of mine tailings and the planting of thousands of trees. Lead levels in children have fallen dramatically to levels equivalent to national averages. The Panhandle Health District, the State of Idaho and EPA continue to educate Silver Valley children to avoid Panhandle Area Council 3-12

28 lead-contaminated areas and accidental lead ingestion. Panhandle Health District, the state and EPA also developed a comprehensive Institutional Controls Program for the site, which provides safe and clear procedures for developing property in the Silver Valley. 1 Wildlife in the region is a valuable resource to both residents and visitors. The abundance of fish and wildlife affords many opportunities for recreational opportunities of fishing, hunting and wildlife watching. However, no project using State or Federal funds can be constructed without consideration of the Endangered Species Act (ESA) of 1973, as amended. The following is a list of Endangered, Threatened or Candidate Species in the region, and their current status. Table 15. North Idaho Species List Group Name Status Counties Affected Fishes Bull Trout (Salvelinus confluentus) Threatened Benewah Bonner Boundary Kootenai Shoshone Fishes White sturgeon (Acipenser) Endangered Bonner Boundary Mammals Gray wolf (Canis lupis) Recovery Benewah Bonner Boundary Kootenai Shoshone 1 EPA Region 10 Superfund Redevelopment Program, 8/21/2014. Panhandle Area Council 3-13

29 Table 15. North Idaho Species List (Continued) Group Name Status Counties Affected Mammals Canada Lynx (Lynx Canadensis) Threatened Benewah Bonner Boundary Kootenai Shoshone Mammals Woodland Caribou (Rangifer tarandus caribou) Endangered Bonner Boundary Mammals Grizzly bear (Ursus arctos horribilis) Experimental Population Non-essential Shoshone Source: Historical Preservation Although Idaho is considered fairly young in comparison with the Nation for historical age of structures and places, the region boasts 98 historic places in the form of buildings, districts sites, structures and objects. A complete listing is in Appendix B as part of the University of Idaho (UI) Region I Asset Inventory. Aquifers Designated as a sole source aquifer in 1978, the Spokane Valley-Rathdrum Prairie Aquifer was the first aquifer in Idaho and the second in the nation to receive sole source designation. The aquifer originates at the southern end of Lake Pend Oreille in northern Idaho and extends west under the Rathdrum Prairie in Idaho and the Spokane Valley in Washington, underlying approximately 321 square miles of land. The aquifer serves as the principal source of drinking water for more than 400,000 people. Because of this, the Spokane Valley-Rathdrum Prairie Aquifer is specially categorized by Idaho as a sensitive resource aquifer as well as being Panhandle Area Council 3-14

30 designated by the EPA as a sole source aquifer. Both of these designations afford the aquifer special protection. Through Idaho s sensitive resource designation, the aquifer cannot be degraded unless it is demonstrated that the change is a justifiable result of necessary economic or social development. 2 Water Resources Land characteristics affect water resources and should be evaluated when designating land use. The EPA and Idaho Department of Environmental Quality (IDEQ) has jurisdiction over the control of pollutants and contaminants in water resources. The Coeur d Alene Tribe has jurisdiction of the southern third of Lake Coeur d Alene and the lower five miles of the St. Joe River. The segment of the St. Joe River above the confluence of the North Fork St. Joe River to St. Joe Lake is designated by the U.S. Forest Service as a Wild and Scenic River. Total miles is 66.3, with 26.6 miles considered wild, and 39.7 miles considered recreational. Workforce Development and Use North Idaho College (NIC) meets the diverse educational needs of students, employers, and northern Idaho communities it serves through a commitment to student success, educational excellence, community engagement, and lifelong learning. NIC s Workforce Training Center in Post Falls offers a wide variety of credit-free classes for career development and personal interest. Classes are open to the public, and generally without pre-admission, academic or residential requirements. A catalogue of classes offered are published each fall, spring and summer, and is mailed to all Kootenai County Residents. Each of the following programs are offered through NIC. Workforce Development offers open enrollment career or job-related classes in a variety of subject areas to enhance skills for employment. Classes are generally short term, credit-free, conveniently scheduled, and do not require lengthy preparation. Classes are offered in instructor-led classrooms or online. The instructors are experts in their fields with hands-on, practical information. Workforce Development offers classes in health professions and emergency services; business and enterprise; computers and technology, and industry and trades including apprenticeship instruction in electrical, plumbing, heating, ventilation and air conditioning. Specialized industry-specific training programs are offered in Certified Nursing Assistant, Commercial Truck Driver, Emergency Medical Technician, Esthetician, Fire Fighter 1 Academy, Nail Technician, and Welding Certification. Community Education offers personal interest courses in response to community interests and needs. Students may cultivate a hobby, develop a skill, and enjoy group activities in the pursuit of lifelong learning. Classes are designed to be practical, affordable, enjoyable and sensitive to the time constraints of today s busy world. Types of classes are offered in categories such as arts, crafts, healthy living, home and garden, language, money management, music, recreation and test preparation. A growing number of classes are available online. 2 August 2014 Panhandle Area Council 3-15

31 Customized Training is the regional leader responding to the training needs of business and industry for the incumbent worker. It specializes in assessing, developing and delivering industry and company specific training to employees at the request of an organization. Customized training works directly with the organization to clearly identify and deliver convenient, affordable and high quality training solutions for increased knowledge, performance and productivity. The Idaho Small Business Development Center (SBDC) exists to help businesses in Idaho to thrive and grow, and provides assistance to improve their profit, margin, sales, cash flow, management, productive and exporting by providing a) no cost business coaching, b) business training, and c) business resources. Businesses that receive coaching and training assistance from the Idaho SBDC grow on the average 700 percent faster than typical businesses in Idaho. The Qualified Worker Retraining Program provides financial assistance to eligible low-income individuals and is designed to help participants obtain training and employment to increase their lifelong earnings potential. This program, funded by a federal grant from the U.S. Department of Labor, seeks to help people living in Idaho travel the road to self-sufficiency along their chosen career pathway. The Continuing Education Unit (CEU) is a nationally recognized measure of participation in an approved non-credit continuing education program. One Continuing Education Unit (1.0) is defined as 10 contact hours of participation in an organized continuing education experience under responsible sponsorship, capable direction, and qualified instruction. There are many professional-technical and occupational program options. Students enrolled in a professionaltechnical program receive comprehensive training and may also receive on-the-job experiences through a practicum or co-op opportunity. These programs provide educational training for entry-level job skills. Reinforcing basic skills and developing job-related skills are integral components of all programs. A U.S. Department of Labor (USDOL) Trade Adjustment Assistance Community College and Career Training (TAACCCT) grant funds are being used to start the NIC Aerospace Center of Excellence. Course/Certification offerings include composites, Non-Destructive Testing, and Air Frame. The Workforce Development Training Fund (WDTF) Sector Grant through the Idaho Department of Labor is being used to start the NIC Wood Products Center of Excellence. They offer courses/certifications on Log Scaling, Saw Filing and Programmable Log Controllers. The WDTF through the Idaho Department of Labor can reimburse employee training costs to eligible companies that are bringing jobs to Idaho, adding jobs through expansion or upgrading skills of current workers who are at risk of being permanently laid off. The fund is financed by employers through an offset to the unemployment insurance tax. Panhandle Area Council 3-16

32 The Idaho Department of Labor in Post Falls and Idaho Forest Group co-organize and facilitate an event annually called Hard Hats, Hammers, and Hot Dogs. The event brings high school students to the Kootenai Technical Education Campus (KTEC) to introduce them to careers primarily in manufacturing and construction. They experience hands on activities in welding, brick laying, framing, heavy equipment operation, engineering, automotive repair, autobody repair, logging and truck driving, among others. Students love the experience, and the businesses love showcasing their occupations in hopes that the students will further explore what it takes to pursue a career in the manufacturing or construction fields. The Idaho PTECH Network is a partnership between industry, high schools and community colleges that prepares students for careers in Idaho s high growth industries, including aerospace/advanced manufacturing, technology and health care. The mission is to build a pathway between industry and education so that students gain the skills needed to secure well-paying jobs and employers gain access to a pipeline of qualified employees. Education The American Community Survey found that a high proportion of the region s adult population has high school diplomas. Kootenai County has the lowest proportion of high school graduates in the district and the highest number of Bachelor s degree holders just below the state and nation. Bonner County has the highest proportion of graduate or professional degree holders. The population of the region, as a whole, has a higher number of people with some college that may hold technical certificates and Associate degrees. This reflects the needs of employers in the region. Benewah County has the lowest percentage of college graduates. Only 13 percent of their adult population have earned bachelor s degrees or higher, while 28.5 percent of American adults are college graduates. All counties fall below the national average. Table 16. County Educational Attainment of Population 25 Years & Over, 2012 United States Idaho Benewah Bonner Boundary Kootenai Shoshone Less than 9th grade 6.0% 4.5% 2.5% 1.7% 6.4% 1.8% 4.5% 9th to 12th grade, no diploma 8.2% 6.9% 9.9% 7.8% 9.8% 6.0% 10.6% High school graduate (includes equivalency) 28.2% 28.0% 43.3% 32.1% 39.0% 28.8% 34.7% Some college, no degree 21.3% 27.3% 25.2% 28.3% 23.1% 29.4% 28.0% Associate's degree 7.7% 8.7% 5.8% 8.6% 7.5% 10.2% 8.5% Bachelor's degree 17.9% 17.0% 7.9% 14.1% 8.8% 16.9% 9.8% Graduate or professional degree 10.6% 7.8% 5.3% 7.4% 5.4% 6.9% 3.9% Over time, the share of population obtaining some kind of degree or credential after high school has increased and the share of people with a high school diploma or lower has declined. The share of population with some college or holding a degree was 32 percent in 1980 and sits at nearly 60 percent today. This shows that there is increasing demand for a more educated workforce. Panhandle Area Council 3-17

33 Table 17. Regional Educational Attainment of Northern Idaho's Population 25 Years & Over Less than 9th grade 12.6% 6.9% 5.4% 2.2% 9th to 12th grade, no diploma 15.6% 14.7% 10.9% 7.0% High school graduate, GED, or alternative 39.8% 33.0% 32.7% 31.0% Some college 19.6% 30.9% 35.5% 38.0% Bachelor's degree 7.5% 10.3% 11.7% 15.1% Graduate or professional degree 4.9% 4.1% 5.5% 6.7% Transportation Access Northern Idaho is considered a cross-roads economic market a market where fewer products are manufactured or produced compared to the amount of freight that comes into or that moves through the area. This region s economy imports substantially more goods and services (consumer related) than it exports. As a result, this region has a difficult time balancing freight loads (trucks leave here either empty or partially empty), which makes transportation costs for manufacturers and producers relatively high compared to other markets. As a result, our main transportation objective is to operate and maintain a regional transportation system that provides for the safe and efficient movement of people and goods to support communities and the regional economy. The good news is that because this region is in a cross-roads environment, many believe there are reasonably good opportunities to grow and attract businesses to the area, as long as there is a good transportation system that can provide reliable access to outside markets. Those markets are generally hours roundtrip by truck or further distances by rail or air. From a transportation standpoint, the keys are safety, reliability and travel time. Safety to ensure products can arrive to their destination damage free. Reliability to ensure that in a just-in-time (JOT) delivery model there is certainty the product is delivered consistently on schedule. Lastly, the travel time to markets needs to demonstrate it is cost effective to ship from the region. In a study conducted by the US Department of Transportation (USDOT) in 2011 on Travel Time costs, they analyzed the value of transportation travel time to various groups. The report provided recommended values of $24.70 per hour for truck drivers, $34.30 per hour for locomotive engineers, and $76.10 for airline pilots and engineers. The recommended rate for local related travel was about $12.50 per hour for personal travel and $22.90 per hour for business trips. For shipping companies or freight forwarders that provide support to business, industry, producers and retailers, the value of time lost or time saved is a key component in their delivery system decision-making. In the same way, the Idaho Transportation Department (ITD), local jurisdictions and highway districts need to consider the value of time lost or saved that will result when prioritizing and selecting strategic transportation investments. For a region to use the regional transportation system (road, rail, air, water) as a competitive tool for economic development, strategic transportation investments targeting safety, reliability and travel time need to be identified, prioritized, promoted and constructed. In some cases, those transportation investments may be Panhandle Area Council 3-18

34 located outside Region I, but can demonstrate a beneficial interest to the region. The following are some generally accepted strategic transportation investments that likely meet these key factors. U.S. 95 North Improvements Garwood to Sagle Widening (safety, reliability, travel time) Copeland to East Port Shoulder Widening and Passing Lanes (safety, reliability, travel time) Worley North Stage 2 Completion (safety, reliability) Bonners Ferry Improvements (safety, reliability) Sheep Creek Project Tensed (safety, reliability, travel time) Paradise Ridge Project Moscow (safety, reliability, travel time) U.S. 2 Washington State Line to Sandpoint, ID Passing Lanes, Shoulder Widening (safety, reliability, travel time) State Route 200 Sandpoint, ID to Montana Border Shoulder Widening and Passing Lanes (safety, reliability, travel time) Interstate 90 Washington State Line to East of Coeur d Alene Various Interchange Improvements/Modifications to meet current and future demand (safety, reliability) Intelligent Transportation System Improvements (safety, reliability) In terms of local jurisdictions and highway districts, a key transportation element to economic competitiveness is access to areas targeted for business and industry development. In many cases, roads constructed off the State Highway System have not been designed and constructed to withstand the movement of freight and goods, especially during late winter and spring seasons. As a result, weight restrictions are typically imposed until the ground under the roads can again support the weight. As a result, there is a need for local jurisdictions and highway districts to assess road capabilities for a geographic area or for specific developments to ensure the production or manufacturing facilities can operate and ship either in or out of their facility year round. While rail transportation has a significant presence within this region, it is continually challenged for access to Class 1 railroads. The historical spur routes to industry model has been de-emphasized in many markets due to the cost to rail operators and the inefficiencies of local switching off and on the mainlines. These switching activities impact the velocity of through trains operating exclusively on the main-line from coastal ports to mid-west and east coast markets. This is particularly true with the BNSF northern tier transcontinental service between Puget Sound and Chicago. While all trains on the Burlington Northern-Santa Fe (BNSF) system refuel in the region (Rathdrum), these trains are generally full train sets, preventing additional cars being added while they are in the region. BNSF has encouraged the use of trans-load facilities and short line operators to consolidate the collection of rail cars from local businesses that are then delivered to BNSF. This approach minimizes the impact to mainline operations by maintaining velocity levels and the cost of operations. Panhandle Area Council 3-19

35 The Union Pacific (UP) Railroad operates in the region from a branch main that connects the UP east-west mainline in Hermiston, Oregon with their intertie to the Canadian Pacific Railroad (CPR) at Eastport/Kings Gate in Eastport, Idaho. As a branch mainline, the number of train sets per day is significantly lower than on the BNSF, therefore, likely more accessible to business and industry either through trans-load operations or direct sidings. The UP s connection with CPR at Eastport/Kings Gate provides unique opportunities for businesses within the region to explore economic opportunities both in Canada and the Midwest/Eastern United States. CPR had substantial access to markets in the Midwest and East Coast as a result of rail line acquisitions over the years that provide them entry to places such as Port of New York/Newark, Montreal, Louisville, Chicago and Detroit. Table 18. Top Northern U.S. Ports of Border Crossing/Entry (yearly) Ranked by Loaded Rail and Total Loaded Containers 2013 Top Ports Rank Rail Port Name Loaded Rail Containers Loaded Truck Containers Total Loaded Containers Rank Loaded Containers 5 MI: Detroit 147,297 1,170,1633 1,317, MI: Port Huron 243, , , NY: Buffalo-Niagara Falls 86, , , MN: International Falls 420,956 14, , NY: Champlain-Rouses Pt 83, , , WA: Blaine 64, , , ND: Pembina 99, , , ND: Portal 172,110 66, , CA: Calexico East , , ID: Eastport 99,890 39, , WA: Sumas 6, , , MT: Sweetgrass 14,469 86, , VT: Highgate Springs 15,086 75,062 90, ME: Jackman 7,339 43,873 51, MI: Sault Ste. Marie 15,521 35,635 51, NY: Trout River/Fort Covington 23,524 4,788 28, ME: Calais 1,866 17,360 19, VT: Norton 10,408 8,521 18, ME: Van Buren 1,860 8,363 10, WA: Boundary 8, , WA: Laurier 2,509 5,632 8, ME: Vanceboro 6, , VT: Richford , Source: U.S. Department of Transportation, Research and Innovative Technology Administration, Bureau of Transportation Statistics, based on Data from the Department of Homeland Security, U.S. Customs and Border Protection, Office of Field Operations; May Figure 10. The Funnel for Northern-Tier Rail Lines Panhandle Area Council 3-20

36 The UP/CPR Railroad connection is an important factor for the region, as the UP transcontinental main line from Portland, Oregon to Omaha, Nebraska is a heavily utilized corridor, making timely access and delivery to markets as well as the transportation rates (tariffs) a potential challenge. Having an alternate route via CPR could result in resolving a potential access, reliability and delivery time changes. Air Aviation plays several key roles in providing economic stability and expansion in Region 1. As part of the National Plan of Integrated Airport Systems (NPIAS) and the Idaho State Airport System Plan (ISAP), airports in northern Idaho provide yet another opportunity to connect people and commerce in the region to the nation and to the world. There are 54 airports in the region, of which, 13 are for public use, and 6 classified as general aviation and identified in the NPIAS: Boundary County Airport, Coeur d Alene-Pappy Boyington Airport, Priest River Municipal Airport, Sandpoint Airport, Shoshone County Airport, and the St. Maries Airport. Each airport is an asset to their surrounding communities by providing access to general aviation, business activities, emergency services, and often act as an economic catalyst to support various economic investments. For communities as in Sandpoint, Coeur d Alene and Priest River, investments in aviation related businesses such as Quest Aviation, Empire Airlines and Aerocet expand the ability to help drive and support the economy both directly and indirectly by attracting additional businesses and jobs into this growing industry cluster in the region. As the region continues to grow both in population and the Source: National Plan of Integrated Airport Systems ( ) economy, airports can be expected to have additional demands placed on their facilities and services. Working closely with local jurisdictions, agencies, and the surrounding communities on an ongoing basis is essential to the protection and preservation of these important transportation facilities and the quality of life as well as the economic opportunities around them. Of Idaho s 283 airports, seven are commercial, 119 are for public use and the rest are general aviation. The 2008 Transportation Department analysis reports 75 of the 119 public airports it owns and operates estimated their economic value at $2.1 billion. This includes expenditures by hundreds of on-airport businesses Panhandle Area Council 3-21

37 and millions of visitors as well as the multiplier effect associated with that spending. About 23,000 direct and indirect jobs with annual payrolls of $718.5 million were attributed to those airports. Direct employment was estimated at 13,124. The analysis also found: Aviation s total economic output from the airports and visitors arriving by air was 4 percent of the state s gross product. Employment represented 2.9 percent of all jobs in the state. General aviation airports reported 439,443 visitors not including residents in 2008 who spent $64.7 million in the local economy an average of $147 per visitor per trip. Commercial service visitors totaled 965,479 with expenditures at $412 million. Idaho s airports serve as vital business links and support critical services such as medical care, agricultural support, search and rescue, forest fire fighting, law enforcement, recreation and environmental services. Public Transportation The following free public transportation options are available in the region include: Citylink Transit is a partnership between the Coeur d Alene Tribe, State of Idaho and Kootenai County, and serves Western Kootenai and Benewah Counties. It operates four routes, 16 hours a day, seven days a week. Benewah Area Transport offers quality public transportation to the elderly and persons with disabilities as well as the general public. It serves the Valley Vista Care facility in St. Maries, as well as residents in Benewah County and the lower parts of Kootenai and Shoshone Counties. Service is available Monday-Friday except holidays, 8 hours a day. Selkirks-Pend Oreille Transit (SPOT) is a not-for-profit collaborative venture between the cities of Dover, Sandpoint, Ponderay and Kootenai in Bonner County. Silver Valley Transport serves Shoshone County between Pinehurst and Mullan, and on Tuesdays and Thursdays offers trips to Coeur d Alene. The Silver Express Paratransit Service is also available for the disabled. Panhandle Area Council 3-22

38 The Inland Pacific Hub: A Global Reach for Commerce The mission of the Inland Pacific Hub Study is to expand and integrate the regional transportation system to maximize efficiency, affordability and safety. The study area includes Eastern Washington, Northern and North-Central Idaho, Western Montana and Southern British Columbia, and Alberta, Canada. It advocates strategic, multi-modal transportation planning and investment that expands the region s capacity for global commerce, and promotes collaboration that positions the region international as an affordable, safe and efficient transportation hub. There are nearly 20 million people living within 16 hours of driving time from the region. Interconnecting Air, Rail and Road systems provide a value of an integrated system with improved efficiencies of fuel, time, flexibility and reliability. Capitalizing on Regional strengths, of the 13 identified potential locations for interconnected transfer points, five are located in Northern Idaho. Scenic Byways The Idaho Transportation Department is the lead agency for administration of the Idaho Scenic Byways Program. There are currently thirty scenic byways in the State of Idaho, of which six are located in the region: Lake Coeur d Alene Scenic Byway, Panhandle Historic Rivers Passage, Pend Oreille Scenic Byway, St. Joe River Scenic Byway, White Pine Scenic Byway, and Wild Horse Trail Scenic Byway. In addition, the International Selkirk Loop is a scenic route traversing through Northern Idaho, Eastern Washington and British Columbia, Canada. Details on the following Scenic Byways can be found at The Lake Coeur d Alene Scenic Byway follows State Highway 97 south along the eastern shoreline of Lake Coeur d Alene for approximately 36 miles. In addition to panoramic views, trails and camping opportunities, there are 8 special attractions. From Cataldo 82 miles south to Potlatch in Region 2, the White Pine Scenic Byway offers lush forests, numerous lakes, nine special attractions and numerous camping facilities. Panhandle Area Council 3-23

39 Beginning at the Washington State Line, the Panhandle Historic Rivers Passage follows U.S. Highway 2 east approximately 28 miles to the City of Sandpoint. This Byway is also part of the International Selkirk Loop. River scenery, two camping areas and six special attractions can be found along this Byway. Six special attractions, numerous camping opportunities and 33 miles of beauty are featured on the Pend Oreille Scenic Byway. This route begins in Sandpoint, and follows State Highway 200 to the Idaho-Montana state line The St. Joe River Scenic Byway begins in St. Maries and ends at the Idaho-Montana state line. Following the St. Joe River, the route follows 89 miles, with eleven special attractions and numerous public and private camping facilities. A portion of the St. Joe River is designated as Wild and Scenic. Included as part of the International Selkirk Loop, the Wild Horse Trail Scenic Byway follows 59 miles north from Sandpoint, through Bonners Ferry to Porthill at the Canadian Border. Offering five special attractions and numerous camping facilities, this route also follows the historic path of the Kootenai Tribe s fishing grounds -Montana state line. Traversing 280 miles through Northern Idaho, Eastern Washington and British Columbia, the International Selkirk is designated as a National Scenic Byway and is one of the top ten scenic drives in the Northern Rockies. Historically used as transportation routes for tribes and early settlers, the loop follows rivers and lakeshores. Industry Clusters Industry clusters are concentrations of highly productive industries within a region that are related to each other, contribute to the identity of that region and provide significant employment opportunities. The clusters identified below are specific to each county within northern Idaho and offer economic stability and prosperity to the region. Panhandle Area Council 3-24

40 Tourism Although people often refer to the tourism industry, there is no formal compilation of industries or occupations that make up this sector. The arts, entertainment, and recreation sector combined with accommodations and food services most closely represent the components that form the backbone of tourism in northern Idaho. Development of golf courses, ski areas, amusement parks and restaurants have made northern Idaho a more attractive place to live, and these amenities have played an especially important role in attracting well-heeled retirees to the region. The region s convention business draws people who would otherwise never visit. They become enchanted with northern Idaho and decide to relocate. Some move their businesses to take advantage of the amenities and lifestyle. Cascade Rescue, which moved near Schweitzer Mountain Resort. Bendigo Inc., a swimsuit manufacturer that benefited from Lake Coeur d Alene s reputation as a fun place and which featured the lake in its advertising. ROW Inc., an outdoor travel company headquartered in Coeur d Alene that sponsors tours all over the world Buck Knives, the knife manufacturer that moved to Post Falls from California in part because of the region s reputation as a hunting and fishing heaven. Tourism is highly seasonal with very pronounced peaks and valleys. Wage payments in many sectors are between 80 percent and 90 percent lower in the second quarter compared to the remaining quarters of the year. Tourism accounted for 7.1 percent of the region s total payroll in Of that, 44 percent was in restaurants and bars. Panhandle Area Council 3-25

41 The tourism industry took its bumps through the recession losing 385 jobs, a loss of 3.3 percent. During its peak, employment in the industry grew 27 percent from 9,322 jobs in 2003 to 11,841 jobs in However, the industry is resilient and has contributed to the rebounding economy in Kootenai County from the most recent contraction. Other counties around the region did not grow as fast in this industry leading up to the bubble and, therefore, felt fewer losses when the bubble burst. There are 11,456 people employed in the region s tourism sector today and is projected to grow by another 1,730 job s by In 2013, northern Idaho had 700 tourism-related employers, 63 percent in Kootenai County and 20 percent in Bonner County. While tourism does not sell its products or services outside the region, it does draw consumers of those products and services from outside the region and, therefore, brings new money into the regional economy similar to the new money brought into the economy by export-oriented sectors. Tourism has also fueled second home construction in the region. Health Care Due to the growing retiree population, the region has created a regional health care hub, which supports growth and fosters stability, inching its way to a primary employer. Representing only 9.5 percent of total employment in 1993 and jumping to 14.9 percent by 2013, health care is the only industry to make such a substantial push over the time period. The region s health care industry is projected to remain strong and expanding at a faster rate than any other industry in the region, growing 42.3 percent from 10,622 jobs in 2010 to 15,143 by 2020, or at an annual rate of nearly 3.6 percent (source: Idaho Department of Labor Long- Term Industry Projections). Health care has been the region s plow horse through the recession adding 1,050 jobs from 2007 to 2010 and continues to add jobs each year. Health care and social assistance accounted for 16 percent of the region s total payroll in Of that, 42 percent was in ambulatory health care services, 37 percent in hospitals, 15 percent in nursing residential care facilities and only 7 percent in social assistance (due to the markedly lower wages). In 2013, northern Idaho had 706 health care and social assistance employers, nearly 70 percent of those or 492 were in ambulatory health care services including physicians, dentists and other health practitioners. Hospitals make substantial contributions to local and regional economies through the purchase of goods and services and the employment of large numbers of workers. In addition, research hospitals are a key component of the knowledge-based economy supporting an experienced and educated workforce and originating and transferring knowledge and innovation. Panhandle Area Council 3-26

42 Wood Products The wood products industry has played a major role in northern Idaho s economy for over a century. While wood products manufacturing accounted for 2.5 percent of total jobs in northern Idaho in 2013, the multiplier effects are substantial. For every 10 jobs created in wood products manufacturing, nearly 25 more are created in other sectors which includes logging, trucking of logs, lumber and wood chips and machine shops. The 114 logging operations add an additional 493 jobs to the forest products sector and transportation of logs and timber add another 400 jobs approximately. The industry generates a strong positive impact on the regional economy due to its heavily-oriented exporting component and above-average wages. Although it appears the composition of the main industries has not changed much over the past three decades, it has changed substantially within each industry. Wood product manufacturing went from capturing 54.3 percent of manufacturing employment and 6.6 percent of total employment in 1993 to as low as 25 percent and 2.5 percent, respectively, by The mixture of primary metal, fabricated metal, machinery, computer and electronic product, transportation equipment, and furniture related manufacturing took its place making the region less vulnerable to specific market conditions. The recession started for the nation in December 2007 and ended June Most areas felt the depths of the recession in For northern Idaho, the region experienced the depths in 2012 and didn t start seeing signs of recovery until Of the 8,250 jobs lost from 2007 and 2012 in northern Idaho, 11 percent were in manufacturing and almost all of those jobs lost were in wood product manufacturing 93 percent. The 2008 closure of the second largest sawmill in the region, JD Lumber mill in Priest River, sent the industry in a tailspin. Although many of those jobs were absorbed from other area mills as the industry started to recover, the sector has only regained 225 of the nearly 860 jobs lost through the recession. Despite the losses from 2007 to 2012, overall manufacturing is bouncing back adding nearly 560 jobs in just one year from 7,324 in 2012 to 7,881 in A couple new elements have been added to the cluster cross-laminated timber and biomass. Cross-laminated timber (CLT) is an advanced product designed for increased dimensional stability and strength in framing systems. CLT is made of multiple layers of wood, with each layer oriented crosswise to the next. Used for long spans in floors, walls or roofs, CLT can be prefinished, which reduces labor onsite, and is equally suited to new construction and additions to existing buildings. Because of its high strength and dimensional stability, it can be used as alternative to concrete, masonry and steel in many building types. A local company, Idaho Forest Group, has brought this innovative wood composite technology to the U.S. This brings a whole new perspective growth to the industry with a global presence. Workforce training will be needed as more architects, engineers and builders learn the advancements the product. Panhandle Area Council 3-27

43 With 87 percent of northern Idaho in forest, the region has a significant source of organic matter biomass for producing wood products, mulch, paper, even plastics as a replacement for petroleum and for negating heat and steam to run turbines that produce electricity. The environmental benefits included reduced dependence on fossil fuels and forest restoration and enhancement by removing diseased trees and invasive species and reducing fuels that feed forest fires. Developing biomass projects can expand and diversify rural economies and replace some of the jobs lost in the severe contraction of the logging sector as well as benefit from available timber industry infrastructure. The output of Idaho s wood products sector is likely to grow considerably in the next 10 years as the housing market continues to recover, housing starts normalize and technology advances. The mills across the state have leapt back into full production. Growing population and increased prosperities in China and other Asian countries had greatly increased exports of Idaho wood products, which should continue. Declining competition from imported western Canadian wood products due to the risk of disease and pests is also expected to reduce timber harvests in British Columbia and Alberta. The Forest Service is willing to increase harvests of timber on its lands, and the Clearwater Basin Collaborative and the Panhandle Forest Collaborative are expected to lead to more federal timber sales. Aerospace The aerospace industry only contributes a fraction of jobs to the region s total, but it increased 2.5 times over the past decade. While small, northern Idaho and the state has a broad range of industry activities that include aircraft manufacturing, aircraft component manufacturing, advanced aerospace research, flight training, military aircraft development, space exploration and airport operations. The industry encompasses the design, development, production and operation of aircraft. Its top tier includes companies directly involved in the production and operation of aircraft. The second tier involves primary suppliers to those companies, and the rest of the industry supplies those suppliers. The standards enforced by the Federal Aviation Administration make supplying to larger companies difficult but eventually profitable. The region s close proximity to the nation s third largest employer in the industry, Boeing, and the Air Force s refueling unit, Fairchild Air Force Base near Spokane gives the region a competitive edge over other areas and has created a tertiary supply market. Northern Idaho has 20 percent of the state s aerospace employment, second to the state s airport hub in the southwestern region Boise. From 1999 to 2009, regional aerospace employment grew at a faster rate than anywhere else in the state, giving aerospace a higher concentration of jobs there than in any of the other five regions. Panhandle Area Council 3-28

44 Figure 11. Share of Employment by Region Table 19. Share of Employment by Region % Change ( ) Projected Growth ( ) % of Total Employment in 2012 U.S. 1,409,626 1,340,058 1,425, % 6.4% 1.0% Idaho 1,941 2,180 2, % 21.5% 0.4% Northern % 35.5% 0.6% North Central % 75.5% 0.4% Southwestern 1,232 1,172 1, % 5.8% 0.1% South Central % -8.5% 0.2% Southeastern % 38.2% 0.1% Eastern % 61.7% 0.3% Source: QCEW Employees EMSI A regional and national comparison involves only certain industry-specific North American Industrial Classification System codes. This underestimates the number of jobs and the impact the aerospace industry on northern Idaho, the state and nation as a whole because while NAICS codes are limited to one function of a business, many smaller businesses serve multiple industries, and that is the case in Idaho even though it cannot be quantified. The survey conducted by Idaho Department of Labor and additional research found another 111 companies involved in aerospace that were not included in the taxonomy used for this report. Those businesses employ 1,725 across the state. A number of the region s aerospace companies began with engineers coming up with new products that were spun off into new companies. Aerocet, Inc. in Priest River and Tamarack Aerospace Group in Sandpoint are prime examples of this kind of innovation. Panhandle Area Council 3-29

45 Tom Hamilton s aviation design expertise and innovation is responsible for Aerocet s 25 years of success in composite aircraft float manufacturing. Aerocet successfully launched a composite kit aircraft, producing more than 3,700 kits that are sold today under the Glasair and Glastar brand. Key Aerocet personnel designed and launched a short takeoff and landing aircraft that was spun off into Quest Aircraft Company s Kodiak. The Sandpoint-based company delivered its 100th Kodiak aircraft in 2013 and continues to penetrate the backcountry market with its new AirClawTM model. With 160 employees, Quest is Idaho s largest aerospace employer next to commercial airlines. Tamarack Aerospace Group specializes in researching, developing and producing efficiency modifications and product upgrades for the aerospace industry. The company debuted its patented active winglet technology that dramatically increases the fuel efficiency and range of a winged aircraft. It also recently solidified a partnership with Cessna Aircraft, and in a few years expects to expand to 140 employees. As air travel continues to grow and military aircraft age, large aircraft manufacturers are looking for innovative ways to increase fuel efficiency, maximize loads and still capitalize on aircraft life. This creates small, niche markets across the country, and many companies supplying those markets emerge near the industry s manufacturing giants like Boeing, BEECH and GE (General Electric). With Boeing s presence in Washington, more work has eventually trickled down to smaller, niche companies in Spokane and northern Idaho. Many provide products to a number of industries and are not classified as aerospace companies specifically but rather as metal fabricators, foundries, computer and peripheral equipment manufacturing. Several companies based in and around Sandpoint have gained much success over the past several years. Some have started as spin offs from existing companies as engineers come up with new innovative products and designs. Aerocet, Inc., located in Priest River, and Tamarack Aerospace Group in Sandpoint are prime examples. Aerocet has successfully launched the first female molded composite kit aircraft in the world, with more than 3,700 kits produced and is still in production today under the Glasair and Glastar brand. In addition, key personnel designed and launched th e Quest Aircraft Kodiak STOL aircraft project which resulted in the spinoff company, Quest Aircraft, the manufacturer of the Kodiak. Quest now has more than 120 employees with more than 160 orders of the 10 seat Kodiak STOL aircraft. Tamarack Aerospace specializes in researching, developing, and producing efficiency modifications and product upgrades for the aerospace industry and debuted its patented active winglet technology and solidified a contract with Cessna. Mining Mining is the lifeline of Shoshone County representing three-quarters of the region s mining employment. The mines in the Silver Valley have seen highs and lows through the past 30 years but continue exploration efforts and a few operations. The Coeur d Alene Mining District in Shoshone County is ranked second in the nation for the production of silver, and third in lead. These mines are the deepest in the United States. As mentioned earlier, the Bunker Hill mine and smelter was the largest employer in the late 1970s and early 80s. After the mine and smelter closed in 1981, the unemployment rate hit as high has 30 percent in Shoshone County. Between 1993 and 1999 the mine operated intermittently at a rate of tons per day. In March 1999, the plans for the mine were to increase production to 400 tons per day. Little Panhandle Area Council 3-30

46 exploration or development has been conducted since due to low metal prices. As of late 2011, only exploration efforts have been occurring and in February 2012 the mine was sold to Galena Mineral Resources. The Galena mine is the second most prolific silver mine in U.S. history, delivering over 200 million ounces to date. The mine is now owned by U.S. Silver & Gold which also owns the Drumlummon Mine Complex in Montana. More zones are being evaluated for bulk mining development. The closure of the Lucky Friday mine located in Mullan of January 2012 cut the mining workforce by nearly 9 percent until it reopened after one year of being shutdown by the federal Mine and Safety Administration. Upon its return, mining employment hit a 20-year high in 2013, employing 844. The region overall reached a record of 1,126 employed in the mining industry. Operations at the Lucky Friday has been steady with silver production increasing 17 percent over the first quarter 2014 and 278% over the second quarter 2013 due to the ramp-up in production last year. The #4 Shaft is a key growth project for the company and is currently 68 percent complete with an estimated completion date of third quarter The total estimated completion cost of #4 Shaft is expected to be approximately $215 million, with much of the spending in and around the region. Other mining exploration and operations include the Crescent mine owned by United Mine Services; Sunshine mine owned by Sunshine Silver Mines Corp, Star mine owned by Hecla; the Coeur, Dayrock, Galena, and Caladay all owned by US Silver and Gold. The industry provides employment opportunities paying nearly three times more, on average, than other industries in the county and contributes 36 percent of total wages. Mining operations are highly cyclical and dependent on the world market prices for silver and gold as well as the supply and demand for other minerals rich in this region such as copper, lead, zinc, ore and garnet making it one of the most volatile industries. Precious metal prices remained strong in Although investment capital shortages continued to impact exploration, optimism in the overall mining industry was reflected strongly by exploration activity. According to the Idaho Geological Survey, 2011 demonstrated an increase in both the number of active projects in Idaho and the amount of drilling and other exploratory work compared to the previous year. Table 20. Silver and Gold Prices High Low High Low High Low High Low High Low Silver $32.23 $18.61 $36.93 $26.32 $48.55 $26.77 $30.64 $14.78 $19.28 $10.45 Gold $1,694 $1,192 $1,709 $1,540 $1,895 $1,319 $1,421 $1,058 $1,213 $810 The mining industry has the potential for research and development efforts, workforce development and creation of small business. In collaboration with partnering agencies, companies and communities, the mining industry could become a national hub for mining training and development. The motions have been set forth but just need momentum. Panhandle Area Council 3-31

47 Conclusion The region struggles to maintain a consistent source of jobs that also match the skills of the labor force. There is a great need for training workers not only for the current jobs available but for the future economy. The wood products industry will continue to thrive as it heads into the technological world. Idaho Forest Group is already positioning its mills to allow for the most recent technologically advanced product in their market cross-laminated timber. The mining industry will continue to fluctuate with the business cycle when a recession looms, metal prices rise, and during boom years, metal prices tumble. It is difficult to understand what the economic picture will look like in northern Idaho in 10 years, but it will most likely have a similar feel with health care being the leading employer and manufacturing becoming more technologically advanced. Both will need a well-educated and trained workforce to fulfill the needs of current and future employers. EMPOWERED PEOPLE VITAL COMMUNITIES DYNAMIC ECONOMIES Panhandle Area Council 3-32

48 Community Survey Community Surveys were sent to the forty-nine economic development organizations, municipalities and counties that comprise the District; twenty-five responses were completed. Questions centered on industry sectors, infrastructure and planning. The survey instrument and results are in Appendix C. Results were weighted using a systematic approach of reversing community priority numbers. For example, if a community rated their top three industries in order of importance (1-2-3); the summary identifies these priorities in reverse (3-2-1). This method of calculation was used for both the Top Industry Sectors and for the Needs and Opportunities. The purpose was to identify where we are as a Region. Industry Respondents reported the top three industries having the most economic impact on the communities or counties were manufacturing, tourism and construction. The population centers of the region indicated that Health Care was significant, and timber remains an economic leader in the rural areas of the region. Industry Challenges Industry challenges were reported for each sector; these challenges may be inhibiting industry growth in the region. Workforce issues were the most commonly reported challenge - lack of skilled workforce, retention of skilled workers, workforce training and mismatch of skills to available jobs. The lack of telecommunications, including the lack of broad band and fiber optic systems impacts a majority of the industries mentioned. As in many rural regions, the District is challenged with aging and under capacity water and sewer systems that inhibit new growth and expansion. And, the lack of available buildings impacts several sectors, including manufacturing and retail operations. Figure 12. Community Survey Top Industry Sectors Transportation Tourism Timber Professional Services Retail Mining Manufacturing Leisure & Hospitality High Technology Health Care Finance Education Construction Agriculture Top Industries Panhandle Area Council 3-33

49 Figure 13. Community Survey Needs & Opportunities When queried about the most pressing needs and the most promising opportunities; workforce development was ranked the highest need and commercial and industrial properties would provide the greatest opportunity for economic growth. Supporting the challenges reported for industry are community needs for telecommunication, broadband and housing. Health care services and education are also promising opportunities. Youth Services & Programs Workforce Development Transportation Telecommunications/Broadband Social Services Senior Facilities & Services Recreational & Cultural Facilities Public Safety/Emergency Mgt Law Enforcement Housing Health Care Services Fire Protection Emergency Medical Services Education (K-12) Commercial & Industrial Property Opportunities Needs Panhandle Area Council 3-34

50 Planning and Economic Goals Of the respondents, fifty percent had economic development plans in place and the other fifty percent did not. Although many communities do not have economic or comprehensive plans they did report economic development goals. Table 21. Community Planning & Economic Development Goals County/Community Goal #1 Goal #2 Goal #3 Bonner County Fiber optic network Building expansion for light industrial and commercial Clark Fork Attract more retail and manufacturing Increase tourism Attract banking and increase law enforcement Coeur d Alene Partner with Jobs Plus to assist with recruitment Upgrade water/sewer system Maintain strong road system Coeur d Alene Tribe Increase participation in labor force Expand existing and construct new business infrastructure Fernan Lake Village Hayden Hayden Lake Development/upgrade of four commercial district lots Implementation of the City s Economic Development program Good streets Implement business license program in GIS for market analysis Reduce the amount of Reservation employees and residents income being spent off the Reservation Update design and development standards Kootenai County Attract manufacturing Attract professional services Prepared workforce for jobs available in area Moyie Springs Renewed timber harvest Commercial development Upgrade equipment Ponderay Wireless high speed Access to lake Downtown Revitalization internet Post Falls Increase economic development efforts Identify and market vision for Post Falls Support current and future businesses Rathdrum Increase home sales Attract new business Retain existing business Sandpoint Aerospace manufacturing Aerospace workforce Broadband, redundant fiber optic development/training Smelterville Create more jobs and increase population Increase mining and timber industries Continue with stormwater project through increase retail Wallace Jobs Infrastructure Jobs Worley Wastewater system replacement Complete ITD highway project Panhandle Area Council 3-35

51 Looking to the Future When asked to look forward five years and identify one positive outcome from economic development the responses were varied: Broadband Business recruitment Business retention Commercial development Event Center Fiber optic Highway/Road improvements Land use ordinances Law enforcement Local option tax/resort tax Manufacturing expansion Parking Pedestrian Paths Public transportation Recreation trails Regional Collaboration Water/Sewer Improvement When visioning for the future, creating and maintaining jobs was the most important goal. Infrastructure and housing improvements were also areas of potential economic impact. Table 22. Community Future Development County/Community Bonner County Clark Fork Coeur d Alene Coeur d Alene Tribe Fernan Lake Village Hauser Hayden Jobs Plus Kootenai County Lake City Development Corporation Moyie Springs Ponderay Future Development - Beyond Five Years More employers with better wages, connection with post-secondary degrees or certifications Clark Fork is a tourism hub, increasing local jobs The City would continue to be fiscally conservative so that it can partner on improvement projects Reservation communities cooperate and coordinate with the Tribe on related economic development projects; new housing construction on the reservation Improvement of the commercial district Recreation trails Capitalizing on regional assets for business development, recruitment and retention, enhancing quality of life through natural and built environment Continue to keep and grow good companies which will employ hundreds of people Comprehensive, progressive look at land use, promoting economic development while protecting natural resources Increase the presence of the University of Idaho and Lewis-Clark State College in Coeur d Alene, continued growth of Kootenai Health, more small corporate offices located in Coeur d Alene Sewer development and improvement, new fire hall, upgrade equipment Sports & Recreation Center on 50 acres, public transportation, light manufacturing and industrial jobs, more retail and commercial growth Panhandle Area Council 3-36

52 Table 22. Community Future Development (Continued) County/Community Post Falls Post Falls Chamber of Commerce Post Falls Urban Renewal District Priest River Development Corporation Rathdrum Rathdrum Chamber of Commerce Sandpoint Silver Valley Economic Development Corporation Smelterville Wallace Worley Future Development - Beyond Five Years Build out of vacant land to increase efficiency of services and infrastructure; increase population base near commerce and jobs; expand retail, restaurants, high tech and medical jobs Increase high tech manufacturing, attract more retail to enhance tourism, addition of a quality conference center, increase workforce housing Increase housing and bring people to the area for employment in expanded commercial areas A diverse range of employment opportunities with living wages and benefits for the community of Priest River Become self-sufficient in services and business Bring in more business to serve our area, create good jobs that will retain youth Compact, efficient, amenity rich, diverse town with authentic sense of place and unique identity Meet or exceed State of Idaho averages for employment and median household income, achieve net taxable base of $1.4 million Continued growth through increased building and expansion of FEMA floodway/floodplain issue can be resolved Continue to be an attractive place to live, develop a workplace environment for young people to remain or locate here for employment More businesses, more housing Initiatives in the Region The following recent initiatives throughout the region are supporting regional community and development efforts: Life beyond Coldwater Creek: An evaluation of the most critical planning needs of Bonner County as the result of the closure of a major employer, Coldwater Creek. WE VALUE POST FALLS Strategic Plan : The City of Post Falls completed a strategic planning effort in early 2013 that identifies the top priorities of the community. The 5-year action plan includes guiding principles, goals, objectives and an implementation plan that is currently being executed. Coeur d Alene Vision 2030: Strategies and actions developed through extensive community involvement, reflecting a vision shaped by diverse, perspectives and points of view with development of an implementation plan that guides Coeur d Alene to achieve its vision for the future. St. Maries School-to-Work Program: Certified Nursing Assistant (CNA) program that allows high school students obtain CNA positions at the Benewah Medical Center upon graduation. Kootenai Health + Mayo Clinic = Economic Development Connection: Kootenai Health is the 30 th member of the Mayo Clinic Care Network, sharing a commitment to better serving patients and their families with access to Mayo Clinic s knowledge and expertise when additional resources are helpful. Panhandle Area Council 3-37

53 Soft Skills Development: A recent initiative of the Idaho Department of Labor. Partnering with Health and Welfare, Goodwill Working Solutions, Community Action Partnership, members of the private sector, secondary and post-secondary educational partners and St. Vincent DePaul, established curriculums are being developed. Innovation Collective: A collaborative effort with Avista, NIC, UI and SBDC to help develop home grown businesses with a focus on innovation. SWOT Analysis A SWOT (Strength, Weaknesses, Opportunities and Threats) analysis was completed by regional stakeholders; this information was used as a foundation for the development of the economic development strategies and action plan for the District. Participants identified the strength, weaknesses, opportunities and threats for each Pathway - Dynamic Economies, Vital Communities, and empowered people. Health care systems, outdoor recreation and quality of life were notable strengths; low wages and an aging workforce were reported as critical weaknesses. Opportunities to impact positive economic growth were varied, from industry development to education and higher wages. The most critical threat to address would be low wages that are also creating an outmigration of workers. Below are the words most heard in the EDC and CEDS Committee meetings. Table 29 on the next page identifies the top three SWOT attributes for each Pathway. The full SWOT can be found in Appendix D. Panhandle Area Council 3-38

54 Table 23. Region I SWOT Top Three Attributes Pathway Rank Strength Weakness Opportunity Threat Dynamic 1 Health care Low wages Collaboration to match education Brain drain Economies to industry needs 2 Viable industry clusters aerospace, biomedical, manufacturing, agriculture, wood products, mining Aging workforce Self-employment rates indicate strong entrepreneurship environment 3 Tourism/Outdoor recreation Lack of transit/air transportation Niche in aerospace manufacturing cluster Mismatch between education and training to the labor market Wage differential with neighboring states and mid-west Vital Communities 1 Strong health care systems Patchwork economy, that is not diversified throughout the region High profile citizens contributing to education, arts, etc. Broadband inaccessibility 2 Transportation corridors E-W, N-S Broadband accessibility and affordability, redundancy and adoption Attract more youth Increasing housing prices 3 Good natural resources/assets Limited funds for infrastructure, maintenance and improvements Expand sports, cultural and recreational opportunities, use quality of life to attract business Political infighting Empowered People 1 Quality of life, outdoor recreation Cultural stereotyping, national and international image Higher education options and opportunities Lack of livable wages 2 Active organizations, chambers, and service groups Low wages, high poverty Mentoring and coaching, connect seniors to youth Mentality of low-wage advantage 3 Affordable cost of living Political polarization Improved wages would improve cost of living Cultural, financial and career counseling impediments to obtaining higher education Data Overview UI completed an Asset Inventory for the region. A complete set of the Asset Inventory is in Appendix B. Panhandle Area Council 3-39

55 Chapter 4 Regional Action Plan Critical Success Factors (CSF) are key conditions that must be created to achieve one or more of the objectives. With this in mind, a visioning exercise was conducted around the region to find out the policy barriers inhibiting economic growth, and what programs or investments could be instituted to address the barriers. PAC attended the local EDC meetings in the region of Timber Plus, Boundary Economic Development Corporation, Silver Valley Economic Development Corporation and the Priest River Development Corporation. Input was also provided by the Bonner County Economic Development Corporation. Barriers inhibiting economic development and opportunities/investments by County are with the meeting notes in Appendix E. The CEDS Committee reviewed the overview of barriers and opportunities that were a common theme among all of the EDC s in the region. Additional input was received, ensuring the SWOT was incorporated. The following identifies Regional Barriers inhibiting Economic Development and Opportunities and/or Investments to break down these barriers. Table 24. Regional Barriers & Opportunities/Investments BARRIERS INHIBITING ECONOMIC DEVELOPMENT Connectivity within and between communities, including communication, public transportation Lack of Diversification Lack of Technology Access Infrastructure water, sewer, roads, broadband Education system/lack of funding cannot get teachers to fill positions, stay and invest in community OPPORTUNITIES/INVESTMENTS Silver Valley Health & Welfare Study Business to business relationships Education-Government-Business Collaborative Incubator Development Legislative efforts to incentivize small business/entrepreneurship Business Plan assistance through PAC & SBDC Central ecosystem Technology Revolving loan fund plan Industrial Revenue Bonds Increase business incentives Shared technology Single source portal CDBG, USDA, EDA Strategic investments Craft education to meet needs of region/community Connectivity of education of industry to education Short term training/certifications School counseling reality to business needs in region Education can t react to the speed of business Internship/apprentice programs Teachers back in industry Panhandle Area Council 4-1

56 Table 24. Regional Barriers & Opportunities/Investments (Continued) BARRIERS INHIBITING ECONOMIC DEVELOPMENT Aging population Workforce Housing lack of entry-level housing (affordable, apartments, rentals) Perception of a lack of arts/culture Lack of shovel-ready facilities, building stock Public Transportation OPPORTUNITIES/INVESTMENTS Mentoring programs SCORE Chamber leadership programs Still in workforce IHFA North Idaho Housing Coalition Land Trusts Inclusionary housing Transportation (in some areas) Change eligibility thresholds Idaho Commission on the Arts Tribal Resources Marketing Tourism Gap Funding Public/Private Collaboration Industrial Revenue Bonds Funding mechanisms Wal-Mart Panhandle Area Council 4-2

57 Action Plan The following Action Plan was developed by the CEDS Committee. Considered in the development of the Action Plan are the SWOT, Barriers Inhibiting Economic Development Growth, and the Vision, Goals, Objectives, and Strategies. Table 25. Regional Action Plan Activity By Whom Timeframe Resources Required 1 Develop a task force for the purpose of aligning education and training to support available jobs and job skills needed for the industries. 3 Collaborate with County Local Emergency Planning Committees (LEPC) to assist in recovery planning efforts 5 Hold quarterly CEDS Committee meetings to discuss and update strategies and the Action Plan 7 Strengthen mentoring and Apprenticeships, in part by using leaders as examples. 9 Develop an entrepreneurial framework and support network. CDA Area EDC Jobs Plus Action Committee PAC PAC Idaho Department of Labor Idaho Department of Labor & Beyond Ongoing Idaho Department of Commerce, Idaho Department of Labor, Education, Industry, Public/Private Entities including Business, Chambers, Schools and Citizens Staff None Upcoming State & Federal Funding 2017 & Beyond Idaho Department of Labor, Department of Commerce, Communities, Businesses, NIC/Avista Center for Entrepreneurship, Innovation Collective, Future Frontiers 10 Explore opportunities with transportation and EDC s to explore commerce with Canada and other international markets PAC, ITD, EDC s, Chambers, Tourism, Transportation Providers, Canada Trade Commissioner (Monica Tate) KMPO Panhandle Area Council 4-3

58 Chapter 5 The Region s Disaster Resiliency Sustainability and resiliency in disaster recovery are a collaborative effort of interagency and intergovernmental coordination. Pre-disaster activities focus on integrating resiliency practices into day-to-day operations, while recovery begins at the beginning of a disaster, whether natural or man-made. Coordination is critical to recovery efforts from pre-disaster to full economic recovery. The County Offices of Emergency Management, with assistance from the Idaho Bureau of Homeland Security, focus on coordination of the immediate needs during and after a disaster. PAC serves as a coordinator of interagency economic recovery activities. This is achieved through collaboration with each County Office of Emergency Management, Idaho Bureau of Homeland Security, and other local, State, Tribal and Federal agencies at all levels of the whole community. Planning is always the first step in Disaster Resiliency. Each County Office of Emergency Management has a Local Emergency Planning Committee (LEPC) to foster public awareness of any hazard, and encourage public involvement in emergency planning, training and exercise. The LEPC s partner with local, state and tribal Trail of the Coeur d Alene: 2008 Flood governments, first responders and business and industry for planning, prevention, preparedness, response and recovery. In addition to the LEPC, each County Office of Emergency Management has an All-Hazard Mitigation Plan and Emergency Operations Plan (EOP). The following is contact information with the URL for each Hazard Mitigation Plan and EOP, as available, for the offices of Emergency Management in the region. Table 26. North Idaho Emergency Management Contacts Contact Hazard Mitigation Plan URL EOP URL VACANT POSITION Benewah County Emergency Management 701 W College Avenue, Suite 3 St. Maries, ID Not available on-line Not available on-line Bob Howard, Director Bonner County Emergency Management 1500 Highway 2, Suite 101 Sandpoint, ID bhoward@co.bonner.id.us content/uploads/emergency%20managment/final- Bonner-AHMP.pdf Panhandle Area Council 5-1

59 Table 26. North Idaho Emergency Management Contacts (Continued) Contact Hazard Mitigation Plan URL EOP URL Mike Meier, Director Boundary County Emergency Management PO Box 419 Bonners Ferry, ID ationplan/index.htm Sandy Von Behren, Manager Kootenai County Emergency Management 5500 N. Government Way Coeur d Alene, ID svonbehren@kcgov.us Dan Martinsen, Manager Shoshone County Emergency Services 717 Bank Street Wallace, ID dmartinsen@co.shoshone.id.us Robert Spaulding Coeur d Alene Tribe of Idaho PO Box 408, 850 A Street Plummer, ID raspaulding@cdatribe-nsn.gov Jay Baker, Northern Area Field Officer Idaho Bureau of Homeland Security 600 West Prairie Avenue Coeur d Alene, ID jbaker@bhs.idaho.gov Not available on-line CdA_THMP_ _FINAL.pdf HMP.aspx ahmplan.asp Not available on-line Not available on-line Panhandle Area Council 5-2

60 The Region s Disasters As noted in Chapter 3, the region is abundant with many natural features including mountains, prairies and valleys; rivers, lakes and streams. The area is subject to natural disasters such as wildfires, landslides, wind storms, winter storms, excessive moisture, flooding and dam failure. Threats of man-made hazards are also present, such as hazard-material spills, transportation (ground and air) accidents, amber alerts, cyber-attacks, civil unrest and terrorism. Some of the most significant incidents occurring in the region include: Heavy snowfalls and rapid snow melt resulted in approximately $28 million in recovery efforts in 1996 and 1997 in Benewah, Kootenai and Shoshone Counties. It was Superbowl Sunday, January 2000, when boulders came crashing down resulting in the largest landslide in Kootenai County s History, stranding hundreds of residents in Bonner County s Cape Horn near Bayview. Fire broke out at Myrtle Creek in 2003, the watershed for the City of Bonners Ferry, Kootenai Tribe of Idaho and surrounding residents. The cost to fight the fire was estimated at $4.5 million. In 2012 this area experienced road closure due to mudslides and flooding. Panhandle Area Council 5-3

61 Railroad Trestle Collapse, Benewah County, 2006 In the spring of 2008 a flash flood annihilated the diversion dam for the water system at East Hope in Bonner County. The year 2008 also brought a powerful windstorm across the Rathdrum Prairie. Cocolalla Loop Road in Bonner County collapsed in 2012 as a result of spring runoff, heavy rain and soil saturation. Panhandle Area Council 5-4

62 An example of a man-made disaster occurred in 1992 over 400 members of the FBI, military and local law enforcement converged at Ruby Ridge in Boundary County to capture Randy Weaver who sold sawed off shotguns to an Alcohol, Tobacco and Firearms (ATF) informant. A full blown Amber Alert in 2005 occurred in Kootenai County. Joseph Duncan killed a child and mother from their home and took the remaining two children from their home. Duncan killed the son and kept the daughter until his capture in Coeur d Alene, and is now a convicted serial killer and sex offender. The above disasters are only a small sample of occurrences in the region. This does not preclude that a future event will occur; however, extensive planning, mitigation efforts and public education in each county have assisted in reducing the potential for such disasters. Existing challenges include the increasing number of oil and coal shipments through the region by truck and by rail, which has the potential to have a significant negative impact. A cyber-attack can jeopardize all citizens, public/private sectors and infrastructure systems such as power. Boundary County borders Canada, which introduces additional threats such as drugs and arms trafficking, and terrorism. Disaster Planning for Economic Recovery Each of the five Offices of Emergency Management in the region are well versed in planning for natural and man-made hazards, and each have a hazard mitigation plan. In addition, each office has an Emergency Operations Plan in the event of an emergency, and cross jurisdictional boundaries when the assistance is needed. However, communities are often unprepared for the chaos that is likely to emerge after a disaster strikes and have difficulty planning for long-term economic recovery when there are pressing humanitarian, cleanup and building needs to address. 3 The success of any recovery effort is dependent on all stakeholders. Preparation for individuals and families is critical not only to reduce stress factors, but also to improve their ability to undertake their own recovery. Establishing public confidence immediately after the disaster is a critical role of the business community. When the private sector is operational, the community recovers more quickly by Recovery challenges in the Region include environmental impacts such as endangered species and historical preservation. In addition, in 1987 a 100 square mile area of Shoshone County was designated as a National Superfund Site as a result of lead contaminated soils from mining activity. This was recently expanded to include the entire Coeur d Alene Basin, which stretches from Mullan, a few miles from the Idaho-Montana border to the mouth of the Coeur d Alene River in Kootenai County. The contaminated grounds make it difficult to sell property without assurances that there has been remediated. The Panhandle Health District manages the Institutional Controls Program (ICP), which is a locally-enforced set of rules and regulations designed to ensure the integrity of clean soil and other protective barriers placed over contaminants left throughout the Bunker Hill Superfund site. ( Excessive moisture and flooding will carry contaminants, resulting in re-contamination of areas considered clean by the Superfund clean-up efforts. 3 Leadership in Times of Crisis A Toolkit for Economic Recovery and Resiliency, International Economic Development Council, 2014, p.39. Panhandle Area Council 5-5

63 retaining and providing jobs and a stable tax base. 4 When local leadership and the business community work together on recovery planning, the public is more likely to be optimistic about the community s ability to recover post-disaster. 5 Through each County s EOP there is a framework in place for roles and responsibilities of local, state, Tribal and federal governments for pre- and post-disasters. A gap that needs to be filled is identification of private sector business and industry that could support recovery efforts. Economic Development District Role As the Region I Economic Development District of Idaho, PAC can assist municipalities in both Pre-Disaster and Post Disaster Roles as an Analyst, Catalyst, Gap Filler, Advocate, Educator and Visionary 6. The chart on the following page identifies the pre- and post-disaster role of PAC. This information was extracted from and edited as appropriate for the region, serving as a guide for PAC to coordinate and collaborate with state and local governments, Tribal Nations, Private Industry and the general public. Table 27. Economic Development District Professional Role in Emergency Management Role Pre-Disaster Post-Disaster Analyst Understand how possible disasters could impact local businesses/industries Understand current conditions/damage to critical industries, businesses, property and infrastructure Assess impacts on long-term viability of businesses/industries Catalyst Gap Filler Participate in each County s LEPC Establish Business Recovery Task Force to work on preparedness activities Outreach to public and private institutions regarding setting up a bridge loan program for a disaster event Assist Counties in identification of business and industry resources Participate in Business Recovery Task Force to identify immediate and long-term recovery efforts Garner input and support for critical recovery initiatives Conduct concerted outreach to reconnect with businesses and identify at-risk companies Assist with bridge-loan financing Provide business recovery assistance and services Develop programs/initiatives as needed to support long-term recovery 4 National Disaster Recovery Framework, Strengthening Disaster Recovery for the Nation, FEMA, September 2011, p Ibid. 6 July 25, Panhandle Area Council 5-6

64 Table 27. Economic Development District Professional Role in Emergency Management (Continued) Role Pre-Disaster Post-Disaster Advocate Assist each County in their planning processes for Mitigation and EOP Advocate for mitigation and preparedness efforts Advocate for tiered business re-entry procedures Address impacts/adequacy of community s emergency management plan from a business perspective Seek funding opportunities for recovery initiatives Communicate priorities and need for policy changes, if necessary, to state and federal leaders Educator Visionary Educate small businesses on business continuity planning Educate business on community s emergency management plan Engage key stakeholders in visioning process to identify scenarios for post-disaster redevelopment Facilitate flow of accurate information to businesses Communicate open for business messages Develop and distribute a disaster recovery guide for businesses Envision how community can build back stronger, more resilient Connect public/private resources for building back a more resilient community Panhandle Area Council 5-7