Coast River Business Journal

When the owners of Tillamook Bay Boathouse wanted to expand their seafood business, they turned to the Columbia-Pacific Economic Development District (Col-Pac) for help in securing a loan for the project.

When Cannon Beach Bakery had the opportunity to move to a newly-built mini-mall that offered more space for the business, Col-Pac officials were able to assist the owners in acquiring the necessary financing to cover the costs associated with the relocation and to purchase equipment for the new store.

Over the years, Col-Pac has been able to help many small business owners in Oregon’s Northwest corner realize their entrepreneurial dreams.

Loan program helps small businesses

Through its Business Lending Program, Col-Pac partners with local banks to finance local business start-up or expansion activities, said Mary McArthur, Col-Pac’s executive director. The program is supported by a $2.5 million revolving loan fund.

For Darus Peake, co-owner of Tillamook Bay Boathouse, Col-Pac’s help couldn’t have come at a better time.

With the curtailment of commercial ocean salmon fishing that makes up a big part of his wholesale/retail business, Peake decided he had to expand his operations into other areas of the fishing business if he hoped to survive. He decided to add a custom cannery and smoker operation to serve the large segment of sport fishermen.

The cannery/smoker operation, which will become only the third such operation on the Oregon coast, will allow Peake to nearly double the four workers he now employs. The cannery is expected to be in operation early this fall.

"If we didn’t have this supporting business, it would be tough to keep going," he said.

Peake said he couldn’t have accomplished the project without Col-Pac’s assistance.

"They were very good to work with, nothing like the SBA (Small Business Administration)," he said.

Robin Christensen was able to get assistance from Col-Pac when she had the opportunity to move her business, Cannon Beach Bakery, into the newly-built Coaster Village commercial mall.

"It’s been an excellent move for us," said Christensen, whose business employs seven full-time workers and double that number during peak periods. "We have more space in a better location and our rent is lower."

In addition to helping to fund portions of loans, Col-Pac also provides financial counseling to business owners, such as Sue Greene, owner of Beaver Grocery & Deli in South Tillamook.

"When I bought the business in 2001, I was pretty naïve," Greene said. "Col-Pac’s counseling really helped a lot. They helped me through the re-financing. They really try to help you succeed."

District formed in 1994

The Business Lending Program is just one service Col-Pac provides as part of mission to help improve the economic well-being of the region, which encompasses Clatsop, Columbia and Tillamook counties and a portion of Washington County.

Col-Pac also assists local communities in preparing financing and project management of infrastructure improvements and identifying and marketing industrial and commercial sites for development.

The organization also provides technical assistance services to local economic development councils.

Established in 1994, to help diversify and strengthen northwest Oregon’s economy and livability, Col-Pac is a federally-designated economic development district. It was one of the last economic development districts established in Oregon at a time when many of the state’s rural areas were reeling from the shutdown of large segments of the timber and fishing industries, and the affects of a nationwide economic slowdown.

"Those were pretty terrible times for rural communities," said Columbia County Commissioner Tony Hyde, a Col-Pac founding member and one of 17 current members on its board of directors.

"The region was competing for scant (federal) dollars and there was no spirit of partnership," Hyde said. "Everyone was working against each other."

Federal officials recognized the need to get counties to work collaboratively to identify the most important projects for government assistance within their region. That led to the creation of economic development districts. The districts are overseen by the U.S. Department of Commerce’s Economic Development Administration.

Initially, Col-Pac’s district included Columbia and Tillamook counties and the western portion of Washington County. Clatsop County joined the district in 1999, Hyde said.

Hyde credits Col-Pac with helping the region secure federal aid for several major infrastructure projects. He said Col-Pac was instrumental in helping Columbia County obtain $1 million in federal funds for road improvements at the Port Westward Industrial Park near Clatskanie, which helped spur further development of the site. Once the sole home of Portland General Electric’s Beaver Generating Plant, the property now boasts an ethanol manufacturing plant and a second PGE power plant.

Administers disaster recovery program

In addition to its regular programs, Col-Pac administers an assortment of special projects including a disaster recovery program for Vernonia, which suffered severe damage in last December’s flooding.

Its Rural Business Enterprise Loan Program provides financial help and counseling services to small businesses that were damaged in last winter’s storm. The funds also can be used for building improvements to prevent or reduce damages in future storms.

According to McArthur, Col-Pac’s board of directors is developing a long-term disaster recovery program that will become part of the district-wide Comprehensive Economic Development Strategy.

McArthur said the plan will explore "needs and innovative approaches to storm-proofing northwest Oregon’s economy" to identify redundancies and opportunities for "coordinated long-term solutions".

McArthur, Col-Pac’s only full-time staff member, said the challenges facing Col-Pac are "no different than that faced by its local business and public sector constituency – long-term sustainability."

The primary source of Col-Pac’s operations budget comes from interest earned through its Business Development Loan Fund. She said the program will have difficulty in meeting the needs of the district without more staff.

"As northwest Oregon continues to be hit by natural disasters, loss of timber revenues and Oregon’s overall economic slowdown, the need for local business development support and economic recovery has never been greater," she said.