Swinomish Channel Swinomish Channel Economic

Swinomish Channel
Economic Contribution Study Update
FINAL REPORT
PREPARED FOR
Port of Skagit
15400 Airport Drive
Burlington, WA 98233
PREPARED BY
BST Associates
PO Box 82388
Kenmore,
Kenmore, WA 98028
September 30, 2014
Swinomish Channel Economic Contribution Study Update
1
EXECUTIVE SUMMARY......................................................................................................... 1
1.1
1.2
1.3
1.4
2
Final Report
REGIONAL IMPORTANCE OF THE SWINOMISH CHANNEL...............................................................1
TRIBAL RIGHTS ................................................................................................................................1
LOCAL FIRE AND SAFETY ISSUES ...................................................................................................2
ECONOMIC IMPACT OF MARINE BUSINESSES AND BOATER EXPENDITURES IN LA CONNER .....2
TECHNICAL REPORT ............................................................................................................. 4
2.1 INTRODUCTION.................................................................................................................................4
2.2 SWINOMISH CHANNEL BUSINESSES & INFRASTRUCTURE ...........................................................4
2.2.1 Moorage ................................................................................................................................4
2.2.2 Marine Businesses ............................................................................................................9
2.2.3 Town of La Conner .........................................................................................................16
2.2.4 Fire and Safety.................................................................................................................18
2.2.5 Navigation ..........................................................................................................................19
3
ECONOMIC IMPACT ASSESSMENT ............................................................................... 21
3.1 METHODOLOGY...............................................................................................................................21
3.2 MARINE BUSINESSES ON THE SWINOMISH CHANNEL ................................................................22
3.2.1 Direct Effects ....................................................................................................................22
3.2.2 Total Effects ......................................................................................................................22
3.2.3 Tax Impact ........................................................................................................................23
3.2.4 Comparison with Previous Results ...........................................................................23
4
APPENDIX - DESCRIPTION OF IMPLAN MODEL ................................................... 25
List of Tables
TABLE 1 – LA CONNER CUSTOMER LINKAGE TO BOAT USE ....................................................................18
TABLE 2 – IMPORTANCE OF SWINOMISH CHANNEL TO CUSTOMERS ......................................................18
TABLE 3 – BUSINESS IMPACT IF SWINOMISH CHANNEL WERE NOT NAVIGABLE ...................................18
TABLE 4 – ECONOMIC IMPACTS FOR SWINOMISH CHANNEL MARINE BUSINESSES ..............................23
TABLE 5 – TAXES GENERATED BY SWINOMISH CHANNEL MARINE BUSINESSES ..................................23
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List of Figures
FIGURE 1 – DIRECT & TOTAL IMPACTS OF MARINE BUSINESSES AND BOATERS IN THE SWINOMISH CHANNEL
(2013) ................................................................................................................................................................3
FIGURE 2 – SHELTER BAY MARINA & PIONEER PARK MARINA ...............................................................................5
FIGURE 3 –PUBLIC & PRIVATE MOORAGES AT TOWN OF LA CONNER ....................................................................5
FIGURE 4 – LA CONNER MARINA ...............................................................................................................................5
FIGURE 5 – PRIVATE MARINA AT CHANNEL WAY......................................................................................................6
FIGURE 6 – PROPOSED MARINA SWINOMISH TRIBE ................................................................................................6
FIGURE 7 – TWIN BRIDGES MARINA .........................................................................................................................6
FIGURE 8 – SWINOMISH TRIBE COMMERCIAL FISHING BOAT DOCK......................................................................7
FIGURE 9 – UPPER SKAGIT TRIBE’S LA CONNER PROPERTY ...................................................................................7
FIGURE 10 – SWINOMISH CHANNEL BOAT LAUNCH.................................................................................................8
FIGURE 11 – SHERMAN STREET BOAT LAUNCH........................................................................................................8
FIGURE 12 – SKAGIT COUNTY FISH LANDINGS........................................................................................................9
FIGURE 13 – SWINOMISH TRIBE FISH COMPANY OPERATIONS ............................................................................10
FIGURE 14 – UPPER SKAGIT LA CONNER OPERATIONS .........................................................................................11
FIGURE 15 – TOMCO MARINE GROUP TUGS ...........................................................................................................12
FIGURE 16 – LATITUDE MARINE MCGLINN ISLAND BOAT YARD ..........................................................................12
FIGURE 17 – MAVRIK MARINE .................................................................................................................................13
FIGURE 18 – LA CONNER MARITIME SERVICE ........................................................................................................13
FIGURE 19 – LA CONNER LANDING MARINE FUEL .................................................................................................14
FIGURE 20 – BOATER'S DISCOUNT CENTER & YACHT SALES ...............................................................................14
FIGURE 21 - TOM-N-JERRY’S BOAT CENTER ..........................................................................................................15
FIGURE 22 – DUNLAP LOG STORAGE YARD ............................................................................................................16
FIGURE 23 – TOWN OF LA CONNER WATERFRONT TRAIL .....................................................................................17
FIGURE 24 – CONNER WAY WATERFRONT PARK .................................................................................................... 17
FIGURE 25 – TOWN OF LA CONNER .........................................................................................................................19
FIGURE 26 – FLOW OF ECONOMIC IMPACTS ...........................................................................................................21
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1 Executive Summary
The Swinomish Channel is a critical 11-mile long artery that connects Skagit Bay with
Padilla Bay in Skagit County. The Channel was originally approved by Congress in 1892 and
the project was completed in 1937. It is authorized to a depth of minus 12 feet below mean
lower low water (MLLW). However, sections of the channel silt in rapidly and must be dredged
at least every three years to retain the authorized depth.
The Port of Skagit retained BST Associates to update a previous report documenting the
economic contribution of the Swinomish Channel, which was prepared using data for 2009. The
following report uses data from 2013.
1.1
Regional Importance of the Swinomish Channel
Boaters in La Conner and points south (especially boaters in Olympia, Tacoma, Seattle,
Edmonds and Everett et al) are drawn to the San Juan Islands, the Gulf Islands and points
beyond. The Swinomish Channel is the preferred route for boats from the south to access points
north, and for making the return trip. In addition, boaters based at ports north of the Swinomish
Channel are attracted to La Conner and points to the south (Everett, Edmonds and Seattle among
others). Boaters prefer the protected and generally predictable transit that the Swinomish
Channel offers when traveling past Skagit County.
The number of boaters that transit the Swinomish Channel annually is substantial.
Approximately 35,000 U.S. visitors to British Columbia arrived by private boat each year. In
2013; 14,000 guest boaters moored overnight at the Port of Anacortes Cap Sante Marina, and
13,000 guest boaters moored overnight at the Port of Friday Harbor Marina. While statistics are
unavailable on their transit route, a majority of these boaters typically use the Swinomish
Channel. In addition, commercial vessels (fishing boats and tugs with log rafts and barges of
aggregates) also use the Swinomish Channel.
Lack of dredging will significantly impact these boats and vessels. It could lead to a
reduced number of trips and/or place boaters in danger as they are forced to travel via other more
dangerous routes.
1.2
Tribal Rights
The Swinomish Tribe and the Upper Skagit Tribe both actively participate in commercial
and subsistence fisheries. Their usual and accustomed fishing grounds, which range beyond
Padilla Bay on the north and beyond Skagit Bay on the south, are protected by treaty rights. The
usual and accustomed fishing grounds means all those areas where the Tribal Community and its
members and its predecessor tribes or bands and their members customarily fished before, at the
time of, and subsequent to, the signing of the Treaty of Point Elliott.1
Fishing, hunting, and gathering (including shellfish harvest), are a central focus of the
Tribes’ culture and are of critical importance to the Tribes’ economy and the economic wellbeing of their members, many of whom are dependent upon fishing, hunting, and gathering for
their livelihood, and for ceremonial and subsistence purposes.2
1
2
Source: Swinomish Tribe Code for Natural Resources.
Source: Swinomish Tribe Code for Natural Resources.
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The Swinomish Channel is a critical corridor for tribal commercial and subsistence
fishermen, providing the most direct route to access points north and south in the usual and
accustomed fishing grounds. Also, for economic development purposes, the tribes have built or
are planning to build facilities related to the treaty fisheries.
1.3
Local Fire and Safety Issues
Dredging the Swinomish Channel is critical for fire protection in La Conner. Many of
the buildings on First Street in La Conner are built on creosote pilings over the Channel. In case
of fire, access to these buildings by water is critical. However, the pumps on the Town’s fireboat
require a minimum of four to five feet of water depth to function properly. Shallower water
causes sediments to infiltrate the pumps and can affect their operating capacity.
1.4
Economic Impact of Marine Businesses and Boater Expenditures in La
Conner
The La Conner area has substantial infrastructure for marine businesses and boaters.
There are an estimated 1,260 moorage slips (wet and dry moorage) that line the banks of the
Swinomish Channel for use by annual moorage tenants; these serve both recreational and
commercial boats. A substantial amount of transient moorage is available for visiting boaters
along the Channel, as well as three boat launches. In addition, the Swinomish Tribe has been
planning construction of a large marina (1,200 slips) along the Channel. The Upper Skagit Tribe
purchased six acres on the La Conner waterfront in 2009, including a warehouse and small pier
used for economic development purposes related to treaty fishing.
There are approximately 25 marine businesses serving the local and non-local fleets in
the La Conner area. These firms offer a variety of services, including: fish processing, boat
building, water transportation services, wholesale trade, marine repair service, fuel, and related
water-dependent business services. In addition, numerous other firms that are not located in La
Conner use the Swinomish Channel extensively. Fishing vessels and tenders use the channel to
deliver fish and seafood from points south to Anacortes and Bellingham. Tour boats from
Seattle bring visitors to La Conner and points beyond.
These marine businesses and the boaters using annual and guest moorage in the area
create a significant economic impact in Skagit County and Washington State. Marine businesses
and boaters in La Conner generated sales in Skagit County of approximately $86.2 million in
business revenue3 in 2013. This generated direct employment of 499 persons with an income of
$21.0 million. These are good family wage jobs, with an average annual income of $42,000.
3
Care was taken to avoid potential double counting of impacts by marine businesses and boaters.
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Figure 1 – Direct & Total Impacts of Marine Businesses and Boaters
in the Swinomish Channel (2013)
1,200
$60
1,048
1,000
$49
$50
821
600
$ millions
800
499
400
200
$40
$33
$30
$21
$20
$10
0
$0
Jobs
Income
Direct
Direct
Total Skagit County
Total Skagit County
Total Washington State
Total Washington State
Total impacts include direct, indirect and induced effects
as calculated by the IMPLAN model for Washington State.
The combined activity supported total employment for 821 persons (including direct,
indirect and induced effects) with income of $32.5 million in Skagit County. Every direct job
supported an additional 0.65 jobs in Skagit County. Every dollar of income at these firms
supported an additional $0.55 at other businesses in Skagit County.
The combined activity supported total employment (including direct, indirect and
induced effects) for 1,048 persons with income of $49.4 million in Washington State. Every
direct job supported an additional 1.1 jobs in Washington State. Every dollar of income at these
firms supported an additional $1.35 of income Washington State.
In addition, the loss of navigation via the Swinomish Channel would have a large
negative impact on property values in La Conner and Skagit County.
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2 Technical Report
The Port of Skagit retained BST Associates to update the economic impacts associated
with the Swinomish Channel. This chapter provides a summary of the methodology and detailed
results of the analysis.
2.1
Introduction
The Swinomish Channel is a critical 11-mile long artery that connects Skagit Bay with
Padilla Bay. Congress originally approved dredging and diking of the Swinomish Channel in
1892. The project was completed in l937. The Channel is authorized to a depth of minus 12 feet
below mean lower low water (MLLW). However, the channel silts in rapidly and must be
dredged at least every three years to retain its authorized depth.
The Port of Skagit is an active participant in the effort to ensure that the channel remains
a navigable waterway. Other partners include Skagit County, the Town of La Conner, the Port of
Anacortes, the Shelter Bay Community, Dunlap Towing, and the Swinomish and Upper Skagit
tribes. In addition, Washington’s congressional delegation has played a key role in past efforts
to secure federal funding to allow the U.S. Army Corps of Engineers to dredge the channel as an
ongoing maintenance activity. Currently, the partnership is urging the Washington delegation to
work again to ensure that this vital work continues within the normal dredging cycle.
The Swinomish Channel is used extensively by recreational and fishing boats, tugs, and
shallow-draft freight vessels. As a result, a significant economic base of infrastructure and
marine business has developed along the Channel. This study is intended to update the economic
contribution of the Swinomish Channel to Skagit County and Washington State.
2.2
Swinomish Channel Businesses & Infrastructure
The following section describes the local and regional uses of the Swinomish Channel.
2.2.1 Moorage
There are an estimated 1,260 moorage slips (wet and dry moorage) that line the banks of
the Channel for use by annual moorage tenants. These facilities primarily serve recreational
boats but some also serve commercial vessels (fishing boats, tug boats and other marine craft).
Moorage facilities include La Conner Marina, Shelter Bay Marina, Twin Bridges Marina, the
Swinomish Tribe’s floats, the Upper Skagit Tribe’s float, Pioneer Park Marina, private moorage
in Shelter Bay and private moorage at Channel Way, among others.
There is also transient moorage for visiting boaters at the Port of Skagit’s La Conner
Marina (2,400 lineal feet), the Town of La Conner (at Benton, Calhoun and Washington Street
end floats), and at private businesses, among others.
The Swinomish Tribe has considered building a large marina in the Swinomish Channel
for several years. Figures 2 to 7 illustrate the marinas along the Swinomish Channel.
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Figure 2 – Shelter Bay Marina & Pioneer Park Marina
Figure 3 –Public
Public & Private Moorages at Town of La Conner
Figure 4 – La Conner Marina
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Figure 5 – Private Marina at Channel Way
Figure 6 – Proposed Marina Swinomish Tribe
Figure 7 – Twin Bridges Marina
Moorage for commercial vessels is provided at the Swinomish Commercial Fishing Boat
Dock, which provides moorage for fishing boats owned by the Swinomish Tribal members and
non-tribal
tribal boats delivering to the Tribe’s fish processing plant. This facility can
n accommodate
approximately 35 boats at one time. In addition to these docks, the Swinomish Tribe has a
Commercial Fish Plant Pier and Dock.
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Figure 8 – Swinomish Tribe Commercial Fishing Boat Dock
In 2009, the Upper Skagit Tribe purchased six acres on the La Conner waterfront, which
includes a warehouse and small pier. The Tribe rebuilt the float in front of the warehouse and is
considering additional uses of the facility for economic development purposes relating to the
treaty fisheries. The U.S. Fish & Wildlife Agency (USFW) is also a tenant in the building.
USFW boats access the Swinomish Channel via the Sherman Street float, located immediately
south of the building.
Figure 9 – Upper Skagit Tribe’s La Conner Property
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There are three boat launches located along the Swinomish Channel, including one under
the SR20 Bridge, one at the Shelter Bay Marina, and one at the south-end of La Conner
(Sherman Street).
Figure 10 – Swinomish Channel Boat Launch
Figure 11 – Sherman Street Boat Launch
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2.2.2 Marine Businesses
There are approximately 25 marine businesses serving the local and non-local fleets.
These firms offer a variety of services, including: fish processing, boat building, water
transportation services, wholesale trade, marine repair service, fuel, and other related waterdependent business services.
$20
4,500
$18
4,000
$16
3,500
$14
3,000
$12
2,500
$10
2,000
$8
Metric Tons
Gross Revenues (mils)
2.2.2.1 Fishing & Fish Processing
Fish landings in Skagit County have experienced significant growth. Revenue from
landings increased from $10 million in 2007 to more than $17 million in 2013. On a tonnage
basis, landings were approximately 4,000 tons in 2013, or nearly twice the volume landed in
2008. See Figure 12
Figure 12 – Skagit County Fish Landings
1,500
$6
$4
1,000
$2
500
$0
0
2007
2008
2009
Revenue (Million$)
2010
2011
2012
2013
Roundweight Metric Tons
The Swinomish Tribe and Upper Skagit Tribe both have usual and accustomed fishing
grounds that extend from the north (Padilla Bay) to the south (Skagit Bay). These areas are
connected by the Swinomish Channel. Tribal fishermen fish for salmon, crab, shrimp and a
variety of other fish and seafood species. The most efficient method of delivery to the fish
processing plants is directly from the fishing boat or from a tender. There are approximately 90
to 100 boats owned by tribal members, which range in length from around 14 feet to 60 feet.
The tenders serving the plants are over 60 feet long and have deep drafts.
Tribal members often need to travel from Padilla Bay to Skagit Bay. The Swinomish
Channel is the most direct and safest way to make the trip. If the Channel were not passable, it
would require the fleet to travel through Deception Pass. This would be very dangerous and
costly.
Swinomish Tribe
The Swinomish Tribe has invested more than $10 million in its processing plant, which is
the largest Native American-owned canning facility in the country (at 50,000 square feet). The
plant generated sales of between $15 million to $20 million in 2013. Approximately 95 percent
of the fish/seafood processed by the plant is purchased from native fishermen.
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Figure 13 – Swinomish Tribe Fish Company Operations4
The Fish Company has recently leased 3,000 square feet of office space in La Conner for
a sales and marketing office that will provide office and display space for its new wholesale
marketing division, and which will promote its proprietary brands “Native Catch” and “Cossack
Caviar.”
Other Swinomish Tribal activities that depend on the channel include:
• Canoe Racing, which occurs during “Swinomish Days”, and includes canoe racing at all
age levels along the Swinomish Channel and at Sneeoosh Beach. Prizes are awarded to
attract the best canoe clubs from other tribes and “join the circuit” of races offered
annually throughout the region,
• Blessing of the Fleet Ceremony, and
4
Source: (Modern) People of the Salmon, Swinomish Tribe invests in its fish processing plant,
goskagit.com
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Various cultural events held at the Tribe’s Welcoming Pavilion (the three cedar hat
shelters).
Upper Skagit Tribe
As described above, in 2009 the Upper Skagit Tribe purchased a six-acre property on the
La Conner waterfront that includes a warehouse and a small pier. The tribe rebuilt the float for
moorage of tribal fishing boats and is planning to use this facility for economic development
purposes relating to the treaty fisheries. The U.S. Fish & Wildlife Agency (USFW) is also a
tenant in the building. USFW boats access the Swinomish Channel via the Sherman Street float,
located immediately south of the building.
The Upper Skagit Tribe has ten boats that frequently use the Swinomish Channel (eight
fishing boats and two enforcement boats). Approximately 20 tribal households are supported by
the catch of these fishermen. In addition, the Upper Skagit Tribe uses the La Conner facility for
enforcement and safety patrols.
Figure 14 – Upper Skagit La Conner Operations
•
2.2.2.2 Boat Building & Repair
La Conner is home to several boat builders as well as several firms and vendors that
provide goods and services to boaters. Between 2000 and 2013 at least 211 boats were built in
La Conner, an average of 15 boats per year. In 2013 at least ten boats were built in La Conner.
La Conner boat builders have also constructed vessels for the U.S. military and for foreign
customers and these vessels are not included in these totals.5
Tomco Marine Group, Inc., which was established in La Conner in 2000, produces 34foot, 41-foot and 49-foot recreational vessels under the “American Tugs” brand.
5
Source: U.S. Coast Guard, Merchant Vessels of the Unite States, 2014. This database does not include
military contracts.
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Figure 15 – Tomco Marine Group Tugs
Latitude Marine builds and repairs vessels with steel or aluminum hulls. One vessel built
by Latitude was a 160-foot barge for the U.S. Navy. Latitude Marine operates from the McGlinn
Island Boat Yard (owned by the Swinomish Tribe) near the south end of the Swinomish Channel.
Figure 16 – Latitude Marine McGlinn Island Boat Yard
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Mavrik Marine builds aluminum work boats, including seine and work skiffs, gillnetters,
seiners, crabbers, passenger ferries and landing craft, among others. Mavrik Marine outgrew its
facilities and with assistance from the Port of Skagit, moved to La Conner.
Figure 17 – Mavrik Marine
La Conner Maritime Service builds commercial fishing boats (coastal crabbers, Bristol
Bay seiners, combo fishing boats (gillnet, crab and longline) as well as providing gear,
maintenance and repair. La Conner Maritime Service operates two Travelifts that can handle
boats up to 82 tons and up to a 25 foot beam. Latitude Marine Services has a 100-ton sling lift
and provides full service repairs and upgrades, including haul out, cleaning, metal and fiberglass
fabrication and repair, repair for electrical and plumbing systems, engine and driveline
maintenance, bottom and topside painting and propeller repair.
Figure 18 – La Conner Maritime Service
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In addition to the boat builders located on the Swinomish Channel, other builders with
fabrication facilities nearby use the Channel to perform sea trials prior to completion of
manufacturing. As an example, Rozema Boat Works, which is located several miles from the
Channel in Bayview, builds vessels ranging from fishing vessels to oil spill response vessels.
vesse
Rozema has a relationship with Twin Bridges Marina to use its commercial dock to outfit boats.
In addition, customers want to test drive the vessels before a sale. Access via the Swinomish
Channel is critical to their success.
2.2.2.3 Wholesale & Retail Trade
Several firms sell products for the marine sector.
La Conner Landing sells ma
marine fuel and related products.
Figure 19 – La Conner Landing Marine Fuel
Boater's Discount Center & Yacht Sales sells marine hardware, parts, and consignment
equipment, as well as fishing licenses, gear, bait
bait, nautical charts, books, clothing, and gifts,
gifts
among other items.
Figure 20 – Boater's Discount Center & Yacht Sales
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Tom-n-Jerry’s Boat Center, which is located at Twin Bridges Marina, sells new boats
(Hewescraft and Kingfisher boats, among others), used boats, and trailers and also provides
service and parts.
Figure 21 - Tom-n-Jerry’s Boat Center
Yacht brokers in La Conner include La Conner Yacht Sales and Fairhaven Yacht Sales.
Pierce Doolie Company Inc. sells small engines. Cold Sea Refrigeration Inc. manufactures and
sells commercial refrigeration and freezing equipment. Naiad Marine Systems manufactures and
sells stabilization and thruster systems for the luxury yacht, commercial ship and military ship
markets. Sail Locker sells covers, tops and accessories.
In addition, there are numerous mobile vendors that provide services to boats along the
Swinomish Channel, including: marine electronics installation and repair services, marine
engine and transmission repair services, marine plumbing and repair services, marine fuel system
repairs and service, marine refrigeration repair services, marine hydraulic repair services, marine
sewage waste pump-out services, marine sanitation repair services, divers who repair/replace
underwater props, zincs and other items, marine fiberglass and wood repair services, marine
custom canvas covers and enclosure installation and repairs, marine interior heating systems
installation and repairs, marine interior boat finishing services (such as carpet, cabinets,
countertops, furniture, beds and stoves, among other items) and marine detailing services, among
other services.
Dredging the Swinomish Channel to its authorized depth is critical to the survival of
these firms.
2.2.2.4 Marine Transportation and Construction Firms
Dunlap Towing has log handling facilities in La Conner and Olympia; a wood chip
reload, harbor log storage and vessel assist services in Everett; log handling and vessel assist
services in Tacoma and Olympia and ship assist capability in Dutch Harbor, Alaska. The
company operates twenty-five tugboats and several inland and ocean chip and deck barges and
has over 200 employees company-wide. La Conner is a major center for log handling as well the
company headquarters. The log yard and dock in La Conner is owned by the Swinomish Tribe
and operated by Dunlap Towing.
In 2013, Dunlap Towing made approximately 143 trips (~240,000 tons) from the
Westside log yard to storage, and handled 28 tows from storage out of channel (~230,000 tons).
Dunlap serves local mills such as Sierra Pacific and Washington Alder as well as several other
regional mills. The ability to use the Swinomish Channel increases the multimodal options for
these mills, enabling them to seek fiber from a larger geographic area.
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Figure 22 – Dunlap Log Storage Yard
Dredging of the Swinomish Channel is critical to company operations. Dunlap tugboats,
which make frequent trips through the Channel, often encounter shallow depths and have to wait
hours, or overnight, before returning because of low waters. This is costly, in terms of missed
jobs and additional crew time. Company boats have a design draft of 8 to 12 feet.
Other marine transportation firms also ply the Swinomish Channel, including Boyer
Towing, Island Tug and Barge and Western Towboat, among others.
In addition, several marine construction firms move equipment and supplies through the
Swinomish Channel, including Culbertson Marine Construction, Carlson Construction and Sea
and Shore Construction, among others.
Dredging the Swinomish Channel to its authorized depth is critical to the survival of
these firms.
2.2.3 Town of La Conner
The Town of La Conner is very dependent upon a healthy Swinomish Channel for its
business commercial district and for it residents. The Town is developing a waterfront trail
along the Swinomish Channel using boardwalks as a key component of the Park Plan. See figure
23.
The Town is also planning construction of Conner Way Waterfront Park, located along
the Swinomish Channel under the Rainbow Bridge. The plan includes a family picnic area,
covered shelter and a play area for children ages 5 to 12. The half-acre site already has water
access and a boat launch, making it an ideal setting for a pleasant summer day. See Figure 24.
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Figure 23 – Town of La Conner Waterfront Trail
Figure 24 – Conner Way Waterfront Park
The La Conner Chamber of Commerce and BST Associates conducted a survey of
Chamber members to explore the relationship between the Swinomish Channel and the
merchants in La Conner. The results are reported in the following section.
La Conner merchants are highly dependent upon visitors for their sales, 54 percent of
their sales are from visitors, compared with local customers at 43 percent and other (primarily
internet sales) at 2 percent of total sales. Nearly all of La Conner merchants have customers that
arrive by boat (guest boaters) or have moorage in local marinas.
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Table 1 – La Conner Customer Linkage to Boat Use
Do you have
Do you have
customers with
customers who arrive
moorage at one of the
Responses
by boat?
local marinas?
Yes
25
24
No
1
2
Total
26
26
Source: La Conner Chamber of Commerce Survey
When asked how important a role does the Swinomish Channel play in attracting
customers, 70 percent of merchants indicated it was very important or critical.
Table 2 – Importance of Swinomish Channel to Customers
Importance
Responses
Percent
Limited role
3
11%
Somewhat important
5
19%
Very important role
Critical
Total
13
6
27
48%
22%
100%
Source: La Conner Chamber of Commerce Survey
When asked how their business would be impacted if the Swinomish Channel were not
navigable, 63 percent of merchants indicated it would have a very negative impact or would
cause them to cease operating.
Table 3 – Business Impact if Swinomish Channel were not Navigable
Importance
Responses
Percent
Limited impact
2
7%
Somewhat negative impact
Very negative impact
Would not be able to operate here
Total
8
13
4
27
30%
48%
14%
100%
Source: La Conner Chamber of Commerce Survey
These qualitative responses reflect the high importance of the Swinomish Channel to the
economy in La Conner. In order to present a conservative estimate, however, these findings
were not included in the economic contribution of the Swinomish Channel.
2.2.4 Fire and Safety
Dredging the Swinomish Channel is also critical for fire protection in La Conner. As
seen in Figure 25, many of the buildings on First Street in La Conner are built on creosote pilings
over the Channel. In case of fire, access to these buildings by water is critical. However, the
pumps on the Town’s fireboat require a minimum of four to five feet of water depth to function
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properly. Shallower water causes sediments to infiltrate the pumps and can affect their operating
capacity.
The Swinomish Police Department's Marine Division is equipped with two Wave
Runners, a 19-foot John Boat and a 32-foot Argus Class, Northwind Boat. All of the boats are
used in search, rescue and law enforcement as an independent function of the Police Department
and in cooperation with the Skagit County Sheriff's Department, Department of Emergency
Management and the U.S. Coast Guard. The marine patrol area includes the waters of Puget
Sound from a line between Edmonds and Kingston, north to the Canadian border and west in the
Strait of Juan de Fuca to Port Angeles. The patrol area is similar to the usual and accustomed
fishing area of the Swinomish Nation.
Figure 25 – Town of La Conner
2.2.5 Navigation
Boaters in La Conner and points south (especially boaters in Seattle, Edmonds and
Everett) are drawn to the San Juan Islands, the Gulf Islands and points beyond. The Swinomish
Channel is the preferred route for boats transiting from the south to access points north because it
offers more protection than other routes. As one boating blog puts it:
“For years we have always headed north via La Conner, only once in these 24+
years did we head out of Port Townsend to the San Juans. We've never gone through
Deception Pass, wimps that we may be. We like the calm and (most of the time)
predictability that the Swinomish offers.”
A reader response underscores the importance of the Swinomish Channel:
“Right on about La Conner and the Swinomish Channel! We generally go that
route for the same reasons you suggest - it's a smooth ride to be sure and avoids a rough
crossing in the Straits bucking a big current. At 7 knots it takes not much more time. We
only cross the Straits southbound when you have 3 options of either going over to
Anacortes, thru Deception, or crossing over the big bond. Northbound once you get to
Port Townsend you are pretty much committed.”6
There were approximately 35,000 U.S. visitors to B.C. by private boat in 2009.7 In 2013,
the Port of Anacortes reported overnight transient moorage of 14,000 boats and the Port of
6
Source: http://cruisemastersboating.blogspot.com/2009/05/la-conner-and-swinomish-current.html. The
response was from David Kutz, author of the Burgee Book, a well known guide book for Puget Sound boaters.
7
Source: Statistics Canada.
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Friday Harbor hosted approximately 13,000 overnight transient boaters in 2013. While statistics
are unavailable, anecdotal evidence suggests that the majority of these boaters travel by the
Swinomish Channel.
Lack of dredging will significantly impact these boaters. It could lead to a reduced
number of trips and/or place boaters in danger as they are forced to travel via other more
dangerous routes.
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3 Economic Impact Assessment
This section provides the methodology and results of the economic impact assessment.
3.1
Methodology
The flow of economic activity is described in Figure 26. Economic activity is generated
by the marine businesses and by purchases made by boaters. These streams of expenditures
create payrolls for people working directly for the marine firms, retained earnings, dividends,
and investments for the owners and local purchases of supplies, materials, and outside labor.
The local purchases by outside firms create indirect jobs. Employees of these firms also
purchase goods, which creates induced jobs. Finally, income associated with direct, indirect and
induced activity generates state and local taxes.
Figure 26 – Flow of Economic Impacts
Activity by Marine Uses
Business Revenue
Payroll
Retained
earnings,
Dividends,
Investments
Direct Jobs
Local
Purchases
Re-spending
Indirect
Jobs
Induced Jobs
Taxes
•
•
The process for estimating economic impacts included several inputs:
Dun & Bradstreet records were accessed to estimate the number of employees and the
revenues of marine businesses in the La Conner area. These were compared with other
data sources (Port of Skagit census of employment, Employment Security Department
data on jobs and wages in Skagit County et al). This data was used to estimate the direct
impacts of marine businesses in La Conner.
Expenditures by boaters (both annual tenants and transient boats) were estimated by BST
Associates as part of an Economic Impact study for the Port of Skagit in 2008 and 2014.
These estimates were also compared with other surveys of boater expenditures prepared
by the US Army Corps of Engineers and Michigan State University, among others.
These surveys were used to estimate expenditures by boaters. Care was taken to adjust
the estimates so that double counts (from marine businesses) were eliminated.
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Based upon the direct impacts, BST Associates estimated the indirect and induced
impacts using the IMPLAN model,8 which estimates the multiplier effects of inter-industry
purchases. Indirect impacts refer to expenditures by the user/tenant on outside goods and
services. Induced impacts refer to purchases based on the employment earnings from direct and
indirect economic activities. As wages are paid out, workers' families spend their income on a
wide array of goods and services, much of which are supplied by the local economy.
Total impacts incorporate the sum of direct, indirect, and induced impacts. It is important
to note that these effects are limited for any region because of spending "leakages" at each round
of inter-industry and household purchases. That is, the goods and services required at each stage
are partly purchased from outside the study area, thus reducing the total supplies provided
locally. The IMPLAN model is designed to calculate the multiplier effects in Skagit County and
Washington State.
3.2
Marine Businesses on the Swinomish Channel
As indicated above, there are approximately 25 businesses on the Swinomish Channel
that are engaged in and/or directly serve the marine industry.
3.2.1 Direct Effects
These marine businesses on the Swinomish Channel generated approximately $86.2
million in direct revenues and directly employed 499 persons with an annual payroll of $21.0
million. The average wage across these businesses was $42,000 per job, which is considered a
family wage.
3.2.2 Total Effects
Marine businesses based on the Swinomish Channel supported total employment
(including direct, indirect and induced effects) of 821 jobs, with income of $32.5 million in
Skagit County. For every direct job, an additional 0.65 additional jobs were supported in Skagit
County. For every dollar of income at these firms, an additional $0.55 of income was supported
at other businesses in Skagit County.
In Washington State, marine businesses based on the Swinomish Channel supported total
employment (including direct, indirect and induced effects) for 1,048 persons with income of
$49.4 million. For every direct job, an additional 1.10 jobs were supported in Washington State.
For every dollar of income at these firms, an additional $1.35 of income was supported in
Washington State.
8
Please see appendix for additional information on the Implan model.
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Table 4 – Economic Impacts for Swinomish Channel Marine Businesses
Component
Revenues
Employment
Employee Compensation
Multipliers
Revenues
Employment
Income
Total Effects
Skagit
Washington
County
State
Direct
Effects
$86.2 mil.
499
$21.0 mil.
821
$32.5 mil.
1,048
$49.4 mil.
1.00
1.00
1.00
1.65
1.55
2.10
2.35
Source: BST Associates using data from Dun & Bradstreet, Port of Skagit and IMPLAN
3.2.3 Tax Impact
The marine businesses based located along the Swinomish Channel generate variety of
local, state, and federal taxes. The IMPLAN model estimates these taxes at the federal level and
at the state and local level. State and local taxes include sales tax, property tax, motor vehicles
tax, and various fees, among others. Federal taxes include payroll taxes, income tax, customs
duties, and corporate profit tax, among others.
According to the results of the IMPLAN analysis, the direct state and local tax impact of
marine businesses located along the Swinomish Channel was more than $5.1 million in 2013,
and the total impact was more than $7.0 million.
The direct federal tax impact of marine businesses located along the Swinomish Channel
as nearly $4.8 million in 2013, and the total impact was more than $7.4 million.
Table 5 – Taxes Generated by Swinomish Channel Marine Businesses (millions)
Tax Jurisdiction
State & local
Federal
Direct
$5.1
$4.8
Total
$7.1
$7.4
Source: BST Associates and IMPLAN
3.2.4 Comparison with Previous Results
The economic contribution of the Swinomish Channel declined slightly in 2013 relative
to 2009, as a result of delayed effects of the Great Recession. Boat building activity declined
with the loss of Pacific Mariner, which was merged into company operations in Westport. In
addition, boating expenditures were lower in 2013 than in 2009, partially due to issues regarding
ease of access and dredging of the Swinomish Channel. These losses were partially offset by
gains in new boat building (Mavrik Marine) and increases in fish processing.
Marine businesses and boaters on the Swinomish Channel generated direct sales in Skagit
County of approximately $86.2 million in 2013, down 15 percent from 2009 levels ($90.0
million in business revenue adjusted for inflation to 2013 dollars).
Direct employment declined by 4 percent between 2009 and 2013, from 521 jobs in 2009
to 499 jobs in 2013. Direct employee compensation declined from $27.6 million in 2009
(adjusted to 2013 dollars) to $21.0 million in 2013, a decline of 31 percent. The jobs created by
these businesses are still considered family wage jobs, with an average annual income of
$42,000.
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In Skagit County, the total employment (including direct, indirect and induced effects)
declined from 914 jobs in 2009 to 821 jobs in 2013. Total income declined from $43.8 million
in 2009 (adjusted for inflation) to $32.5 million in 2013.
In Washington State, the total employment (including direct, indirect and induced effects)
increased slightly from 1,045 jobs in 2009 to 1,048 jobs in 2013. Total income declined from
$53.8 million in 2009 (adjusted for inflation) to $49.4 million in 2013.
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4 Appendix - Description of Implan Model
IMPLAN began creating economic impact modeling data in 1976. Since then, the firm
has provided data to help government agencies and businesses conduct studies and make
decisions. Economic Impact Modeling is a software, data or even a technique that allows an
analyst to trace spending through an economy and measure the cumulative effects of that
spending. The need for an Economic Impact Analysis is normally triggered by an economic
event, catastrophe, change in government policy, justification for funding, or as needed for
planning (schools, streets, sewers, and public utilities).
The Rural Development Act of 1972 was the initial impetus for the creation of IMPLAN,
and the USDA Forest Service directed the designing of the model in 1976. This modeling
system was named IMPLAN (IMpact analysis for PLANning). The model was eventually spun
off to a new company called MIG (Minnesota IMPLAN Group).
In 1992 California became the first state government to use IMPLAN, and in 1993
St. Paul, Minnesota became the first city to use IMPLAN. Since then, several thousand
government, academic, and industry organizations have adopted the model. Examples include:
Federal
• Federal Emergency Management Agency (FEMA)
• Bureau of Reclamation
• Bureau of Economic Analysis (BEA)
• Bureau of Land Management (BLM)
• Federal Reserve Bank
• Environmental Protection Agency (EPA)
• American Recovery and Reinvestment Act (ARRA)
Other Government
• Cherokee Nation
• State of California
• State of Washington
Academic
• UNC Charlotte
• Washington State University
• Eastern Washington University
Industry
• CH2M Hill
• Duke Power
• Ernst & Young
•
Booz Allen Hamilton
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