WPPA Facilities

1
WPPA Facilities Engineering Seminar

• Prioritizing Capital Projects
• Mark Wilson, Manager of Development
• Port of Kalama

2
Port of Kalama Overview

• 1,000 acres along 7 miles of waterfront
• 4 deep draft marine terminals
• 2 grain, 1 chemical, 1 steel/breakbulk 8.7M
  metric tons in 07
• Marina/public recreation facilities
• Light industrial park
• Marine heavy industrial
• Future business park/light industrial park

3
Capital Project Planning

• Capital projects are heart of what a port does
• Very visible in community
• Begin with the end in mind -
• But not necessarily on paper
• Dont get too far ahead of the decision makers
• Understand drivers for decision making and create
  opportunities for good decision making
• Commission probably only engaged in port business
  a few hours per week, the public even less
• Commissioners and community need to own the
  decision making process

4
Capital Project Drivers

• Political
• Job creation
• Public interest
• Election politics
• Business opportunities
• I need it yesterday why we build on spec
• Realistic timelines text book projects
• Meeting rate of return
• External funding opportunities
• Grants
• Appropriations
• Regulatory/Environmental Constraints
• Permits/new legislation
• Pipelines/Pollution/Hazmat

5
Project Case Studies

• Kalama River Industrial Park
• Spec warehouse space
• Cameron Glass wine bottle manufacturing
• Recreational Waterfront Revitalization
• Park Expansion
• Restaurant/Interpretive Center

6
Light Industrial Park

• Kalama River Industrial Park
• Full build-out est. 25-30M
• 75 acres, limited road access due to rail
• Needed bridge over river to provide access
• Issue Return on investment didnt meet Port
  goals
• Commission direction We want a bridge, find a
  way to get someone else to pay for the bridge
• Staff solution Federal earmark, State
  infrastructure grant, County economic development
  grant
• 3.7 Million project, 3.5 million in grants

7
Light Industrial Park

• Kalama River Industrial Park, cont.
• Bridge to 75 acres of sand
• Needed infrastructure
• Commission immediately decided to build out
  infrastructure 1 M water, sewer, gas, phone,
  electricity, and road
• Bridge and road through 75 acres of sand
• Commission had been reluctant to build spec
  buildings, but no interest from private
  investment
• Staff analysis of revenue stream from renting
  bare land vs. renting buildings
• Analysis of marketing contacts showed demand for
  industrial buildings with short term needs
• Good job creation opportunities in small
  manufacturing

8
Light Industrial Park

• Cameron Family Glass
• 110 m capital investment, 90 family wage jobs,
  13 acre land lease
• Located in Kalama River Industrial Park
• Project driver was jobs and capital investment
• Port infrastructure projects were series of small
  works projects
• 450 of rail
• 2,000 of waterline
• Road improvements
• Relocation of a cell tower
• Grant from Cowlitz County funded rail and
  waterline

9
Recreational Waterfront Improvements

• Recreational waterfront revitalization
• Recruiting business also means recruiting senior
  execs or owners to live in/near community
• Project identified in Community Action Plan
• Community wanted better recreational
  opportunities
• Wanted quality restaurant on waterfront
• Needed tourism facilities to diversify economy
• Enlisted Portland State University grad students
  to develop revitalization plan
• Free services appealed to Commission
• More community input
• Developed master plan

10
Recreational Waterfront Improvements

• Convert Aging RV Park
• Small Contingent of opposition from outside
  community
• Marine Park Expansion
• 700,000, 5.5 acres
• Tennis, basketball, sand volleyball courts
• Horseshoe pits and 3 picnic pavilions
• Project driver overwhelming local support for
  park expansion during election year

11
Recreational Waterfront Improvements

• Waterfront Restaurant/Interpretive Center
• Strong community support
• Restaurant and community museum
• Commission skepticism
• Developed plan and marketing materials

12
Recreational Waterfront Improvements

• Lease negotiations with McMenamins
• 400k in grants for interpretive center

13
Capital Facilities/Strategic Plan
14
Capital Project Planning

• Begin with the end in mind -
• But not necessarily on paper
• Dont get too far ahead of the decision makers
• Understand drivers for decision making and create
  opportunities for good decision making
• Commissions probably only engaged in port
  business a few hours per week, the public even
  less
• Commissioners and community need to own the
  decision making process

15
Mark Wilson Port of Kalama 380 W. Marine
Drive Kalama, WA 98625 360-673-2325 markwilson_at_p
ortofkalama.com