Idaho History, Religion, Cultural, Population, Idaho Economy &

Inflation, Employment, Demand Indicators of A Growing Economy of Boise MSA & Southwestern Region and 99 Counties of the Columbian Basin Employment and Restricted Land for Development

CHAPTER I

PART II of II

 

 

          BOISE REGIONAL HUB OF GOVERNMENT & JOB GROWTH

 

    "Idaho is a Republican state in national politics but had Democratic governors from 1970 to 1994. Cecil D. Andrus, elected governor in 1970 and reelected in 1974, served as secretary of the interior during the Carter administration; he was elected governor again in 1986 and 1990. Republican Phil Batt, elected governor in 1994, was succeeded by Republican Dirk Kempthorne, elected in 1998."  Factmonster.  (Ref. 1M).  http://www.factmonster.com/ce6/us/A0858738.htmlv

 

    "Idaho became the twenty-first Right to Work state in the U.S. in 1985, when both the state Senate and the state House of Representatives overrode then-Governor John V. Evans' veto of House Bill 2.  The Right to Work law was upheld by Idaho voters on November 4, 1986, by a surprisingly strong 54-46 percent margin." NATIONAL INSTITUTE FOR LABOR RELATIONS RESEARCH, 5211 Port Royal Road Suite 510 Springfield, Virginia 22151.  As reported by David Kendrick, Program Director.  (Ref. 94).  http://www.nilrr.org/idaho.htm

 

    "Since 1974, the Idaho Association of Commerce & Industry (IACI) has been Idaho's most influential business lobby -- representing businesses, chambers and associations statewide on public policy issues in the Idaho Legislature."  (Ref. 95). 

http://www.iaci.org

 

    "Boise, Idaho, is the state capital, and one of two metropolitan areas in Idaho. Approximately 403,817 people live in the Boise Metropolitan Statistical Area (MSA) which includes Ada and Canyon Counties. Nampa and Caldwell are the major cities located within Canyon County. The below figures are for the Boise Metropolitan Statistical Area (MSA) unless otherwise noted. For further information about subjects such as employment, education, etc."  Boise Idaho. (Ref. 17).  http://www.boise.org/cityinfo.html

 

Population

 

Boise Metropolitan Statistical Area, 2000 - 403,817

Ada County Population, 2000 - 283,357

Canyon County Population, 2000 - 120,460

Boise City, 2000 - 185,787

Designated Market Area, 1999 - 538,800

 

Geography & Climate

 

Land Area, Boise MSA - 1,645 square miles

Elevation - 2,842 feet

Annual Precipitation - 12.11 inches

Sunshine Days - 234

Average Temperature January - 22-36 degrees F

Average Temperature April - 37-61 degrees F

Average Temperature July - 58-90 degrees F

Average Temperature Oct - 39-65 degrees F

 

    "David Birch, president of Cambridge, Mass., based Cognetics Inc., was interviewed by The Wall Street Journal in 2000, rating Boise in the top 20 of 24 mid-sized cities as a hotbed for entrepreneurs.

 

     Boise is the regional hub for government, business, cultural and transportation, making it a viable place to invest and develop.  This geographic reality is evidence by the large number of fortune 500 companies having headquarters or major prescience in Boise.

 

     The top five manufacturing industries are electronic and other electrical equipment, industrial machinery, lumber and wood products, food and kindred products, and transportation equipment.  However, many other industries have continued to expand and enhance Boise’s reputation as a regional center for transportation, communications, financial and customer/business transaction centers, and medical and professional services.”  "History of Ada and Canyon Counties." As reported by Tim Woodward of the Idaho Statesman September 24, 2000.  "History of Ada and Canyon Counties." (Ref. 15).

 

     "The Boise Metro Chamber of Commerce is the area’s largest general business organization with nearly 1,800 members as of November 2001.  The Chamber’s mission is to serve as the principal advocate for the business community, dedicated to building economic prosperity in the region.  With the support of its members, the Chamber works directly with all levels of government to establish policy and effect positive growth in the Boise Metropolitan Statistical Area (MSA – Ada and Canyon Counties).  The Chamber reports this information to its members through publications such as the quarterly Boise Metro Business Barometer.

 

    Currently, there are hundreds of Chamber volunteers working on committees and task forces in areas such as economic development, governmental affairs, small business, membership, workforce development, healthcare, downtown, the Center for Workforce Leadership and Chamber PAC, the Chamber’s political action committee." Boise Metro Chamber’s Economic Outlook Forum 2000 and printed in the November 2000 issue, Volume 8, No. 4 Metro Boise Metro Business Barometer 2000 Review & 2001 Outlook, Volume 8, No. 4, November 2000. (Ref. 96).

 

    “Two million square feet of new retail space opened in the Boise Metropolitan Statistical Area in 1999, bringing department stores, spe­cialty shops, restaurants and other amenities. New theaters, concert venues and professional and college sports events compete with natural attractions for leisure time and in a valley once dominated by agriculture, more than 400 small and large high-tech businesses are fueling a robust job market and booming construction industry. The relative prosperity, which flowed decades of economic stagna­tion, has brought increased congestion, traffic, development of thousands of acres of agricul­tural land, and concerns about managing the area's rapid growth. It also has brought eco­nomic diversity and cultural benefits.

 

    Wal-Mart, Fred Mey­er and Lowe's Home Improvement in 2000 open­ed new stores that will add 1,700 jobs. A new Edwards Cinema and the Idaho Center at Nampa are attracting spin off businesses, and new shopping centers are under construction in Boise and Meridian."  As reported by Tom Woodward of the Idaho Statesman, September 24, 2000.  "Construction Booming."  (Ref 18).

 

    “As law makers reapportion seats based on population changes, the Treasure Valley’s fast-paced growth means the region could emerge as a stronger player in an Idaho Statehouse dominated for decades by rural interests.  “This bespeaks a very fundamental shift in Idaho,” Eiguren, a Boise lawyer, said June 12, 2000 during the chamber’s annual lobbying trek to the nation’s capital.  On the first day of the chamber’s two-day swing through Washington, urban growth issues took center stage.  With the population shift, Eiguren envisions changes in the Legislature’s tax policy – under which sales taxes collected in the Boise area now subsidize rural regions – and in the Legislature’s views on the environment.  “From statehood in Idaho, there’s been a focus on the extraction of natural resources.  But the average urban dweller is more concerned about with accessibility and use of the resource base than its extraction,” Eiguren said.

 

    The May 29th issue of Forbes magazine announced Idaho ranks fifth on Forbes list of best place in the United States to do business and advance a career.  As reported by Tim Jackson of the Idaho Statesman:  In the cover story of the 29th issue of Forbes Magazine, “the magazine ranked 200 metropolitan regions by eight business categories, including wage and salary growth, job growth and high-tech clustering.  Boise climbed from 49th last year.  Forbes noted that CSHQA Architects-Planners, with 170 workers, was the fastest growing company in Boise from 1977 to 2000, with 38 percent growth in employment.  The 111-year old firm started as architects, and expanded into civil, structural, electrical and mechanical engineering.  “Now we’re putting ourselves on the map with the progressive businesses we have in the city.  It’s exciting to see that growth happening here,” said Marie Schreiner, a CSHQA marketing coordinator.

 

    “What’s driving us is our high-tech industry,” Mahn said.  Twenty years ago, Boise had eight high-tech businesses; it now has more than 400.  Spurring the growth is the success of Hewlett-Packard Co. and Micron Technology Inc. and the many local high-tech businesses that have spun off from those two giants, he said.  Other factors in Boise’s high Forbes ranking include Idaho’s high level of entrepreneurial spirit, good access to capital, a strong work ethic and pro-business cooperative relationship between government and Idaho’s universities, Mahn said.  Quality-of-life factors also played into the ranking.  “You can’t transport this quality of life easily,” said Ed Zimmer, chief executive officer at Electronic Controls Co., a Boise firm employing 150.  “The major factor behind our growth is the quality of the talent we’ve been able to attract and retain.”  As reported by Tim Woodward of the Idaho Statesman September 24, 2000.  Construction Booming. (Ref. 18).

    “Growth in every facet of the economy is strong and getting stronger.  Cheap hydroelectric power rates are among the lowest in the nation." (Ref. 97).  As reported by Fredreka Schouten of the Idaho Statesman June 13, 2000: “Population growth fuels political clout:” 

 

Status of State Electric Industry Restructuring Activity, March 2002 (Ref. 98).  http://www.eia.doe.gov/cneaf/electricity/chg_str/tab5rev.html

 

WELCOME TO THE IDAHO PUBLIC UTILITIES COMMISSION (Ref. 99).

http://www.puc.state.id.us

 

    "GI Joes is planning aggressive northwest expansion into Washington, Idaho and possibly Utah and Northern California.  GI Joe's officials say the Wilsonville company's goals are to be a Northwest retailer, not just an Oregon company. GI Joes mixes footwear and other sports apparel with automotive, sports, hunting and camping goods. Analysts say the decision to expand now, in a sluggish economy, is a bold move.  The company has 13 stores in Oregon and five in Washington and employs about 1,200 people. It plans new stores in Seattle, and eventually in Spokane and Boise, Idaho." (Ref. 100).

http://www.katu.com/business/story.asp?ID=45293

 

    "The relaxed quality of life has attracted national recognition.  Boise and the surrounding area residents now have the Stallions football, Steelheads hockey, Stampede basketball at the Bank of America Centre and Hawks baseball at Memorial Stadium for past time enjoyment.  Big-name entertainers used to bypass Boise and Nampa, but in the last year these towns have hosted Bob Dylan, Bonnie Raitt, Tony Bennett, Faith Hill, the Dixie Chicks, Roger Waters, the Boston Pops and Miss Saigon."  As reported by Tim Woodward of the Idaho Statesman September 24, 2000.  "History of Ada and Canyon Counties." (Ref. 15).

 

OPIC Investor's Information Gateway - State Link Database Info for Idaho (Ref. 101). http://www.opic.gov/links/USAInfo.asp?state=ID&region=usa

 

Local Chambers of Commerce Local Chambers of Commerce

OPIC Clients in Idaho

OPIC Clients in Idaho

State Chamber/Business Organization - Idaho Association of Commerce & Industry

 State Chamber/Business Organization - Idaho Association of Commerce & Industry

State Government - Home Page

State Government - Department of Commerce Division of International Business

State SBA Office

U.S. Census Bureau 2000 Census - State Data Highlights

U.S. Census Bureau 2000 Census - State and County QuickFacts

U.S. Commercial Service - Boise Export Assistance Center

 

Idaho High-tech Manufacturing Job Growth

 

    "Ada County in Idaho is an attractive market because of new jobs created by the Micron Technologies, High Tech and manufacturing industries and a growing local economy." 

 

    “Two manufacturing subcategories usually classified as “high-tech” in Idaho are Non-electrical Machinery and Electrical and Electronic Equipment manufacturing.  Statewide employment decreased by nearly 600 jobs (5.5 percent loss) in 1999, while the Electrical and Electronic Equipment industry added slightly over 500 jobs (4 percent gain).  All of the job losses and gains in 1999 were within the Boise MSA.

 

    Employment figures for the twelve months ending August 2000 reveal that statewide Machinery employment was up by nearly 200 jobs, all 200 within the Boise MSA.  Electrical and Electronic Equipment employment in the twelve months ending August 2000 increased by nearly 400 statewide, again all 400 jobs were within the Boise MSA. 

 

    For the twelve months ending August 2000, manufacturing employment in the MSA is up 1.8 percent over the prior twelve-month period."

 

    In 2001 and 2002, it was expected that manufacturing employment in the Boise MSA would increase by nearly 1,250 and 1,600 jobs respectively, over 2000 employment levels.  However, statewide manufacturing employment was expected to increase by only 950 jobs in 2001, and is expected to increase to 980 in 2002.

 

    With a number of companies expanding there facilities in 2000, to include Jabil Circuit, Micron Technology and Western Electronics, the outlook for “high-tech” manufacturing in the Boise MSA is bright. 

 

     Many smaller manufacturing firms expanded production capacity in 2000. Jabil Circuit Inc. announced in mid 2000, they anticipated hiring 700 new employees.

 

      In 2000, the city of Boise ranked 3rd in the United States for growth in high-tech industry.  Boise area is among the top 25 cities for its share of the nation’s technology economy."  As reported by Holmes Lundt, V.P., Extended Systems, and President, Portsmih, at the Boise Metro Chamber’s Economic Outlook Forum 2000. (Ref. 101)

 

    "Boise area high-tech sector has grown 9.7 percent during the 1990’s, spurred by new employment at Micron Technology Inc., and the addition of more than 150 new tech companies.  The technology sector – which includes Internet, semi-conductor and computer companies – employees about 20,000 people in Ada and Canyon Counties.  Statewide, tech workers account for 34,300 jobs, up to 9,500 employees since 1998.

 

    A study released in 2000 by the Milken Institute in Los Angeles ranked Pocatello No. 2 in growth with 10.1 percent, largely because of the growth at American Microsystems Inc. and start-up companies.  Albuquerque, N.M., was No. 1 in growth with 12.7 percent.  The study looked at more than 300 cities in the United States.  It reported that the high-tech industry has grown four times as fast as the overall U. S. economy, and many local economies are becoming dependent on it.  An economy with many high-tech businesses is able to grow faster than those that have few."  Marceiene Edwards of the Idaho Statesman July 14, 1999. (Ref. 102).

 

American Electronics Association,  (Ref. 103A). http://www.aeanet.org

 

     "Idaho’s high-tech industry added nearly 8,479 jobs between 1993 and 1998, – about 4,621 of those jobs were from new businesses moving into the area – 45.5 percent of the jobs could be attributed to companies already here that are expanding 2000, making Boise MSA the seventh-fastest-growing technology-related work force in the country in 2000; according to an industry report by the American Electronics Association, together with Nasdaq Stock Market, Census Bureau and Labor Department statistics.

 

    AEA found that California had the most technology jobs and the greatest number created.  Texas ranked second in both categories.  Colorado has the highest concentration of high-tech workers – 84 percent out of every 1,000.

 

    "The high-tech industry is no longer confined to Silicon Valley…it is now an industry whose scope, dynamism and impact extends from sea to sea,” said William T. Archey, AEA president.  High-tech workers counted included everyone employed at companies that make technology products – such as microchips or software – or provide communications or computer services.”

 

    High-tech employees in Idaho earned an average wage of $44,600 in 1998, exceeding the average private sector wage of $24,555 by 82 percent.  In 2000, Idaho was ranked sixth in semiconductor manufacturing employment, with 11,100 jobs, and 14th in computers and office equipment employment, with 7,100 jobs.

 

    Micron Technology Inc. in Boise is one of the leading producers of computer memory chips in the world.  “Idaho’s high-tech industry, led by semiconductor manufacturing, is growing by leaps and bounds,” said U. S. Senator Larry Craig.  “From potato chips to computer chips, our state is a national leader.”

 

    More than 24,800 workers received paychecks from 700 high-tech employers in Idaho in 1998.  That was a 51 percent increase from 16,446 in 1993.  High-tech firms employed 58 of every 1,000 private sector workers.  “Idaho has experienced strong high-tech industry growth for the past twenty years,” said Steve Simpson, CEO of Extended Systems Inc., “Now because of even stronger progress in the last couple of years, we are recognized as a state with a successful high-tech past and very promising future.

 

    The nation’s high-tech work force has grown by $1.2 million people since 1993, hitting 5 million in 1999, according to the industry report.  Washington state, home to software giant Microsoft Corp. and other companies where stock options are common, led the nation in high-tech wages, with annual pay averaging more than $105,000 in 1998.  The state added 36,500 technology jobs between 1993 and 1998, totaling 106,100 employees, and making it the eight-fastest growing state for such jobs in 2000.

 

    June through September 2000 public announcements were made by 3 of the Boise’s major employers of expansion plans requiring 2,300 new employees.  500 Electrical Engineers were needed at Micron Technology Inc., yet the Universities aren’t turning graduates out fast enough.  The Company presently employees 130 personnel and expects the work force to increase to 200 by December 2000, with expectations of future growth to as high as 400 employees by years end 2002.

 

     The high-tech industry is no longer confined to Silicon Valley…it is now an industry whose scope, dynamism and impact extends from sea to sea,” said William T. Archey, AEA president.  High-tech workers counted included everyone employed at companies that make technology products – such as microchips or software – or provide communications or computer services.”  As reported by John Tucker of the Idaho Statesman September 24, 2000. (Ref. 104).

 

“Leading Treasure Valley Employers account for 45,114 jobs and increasing as of September 2000:

 

1.       Mountain Hone Air Force Base - 10,076

2.       Micron Technology Inc. - 9,500

3.       Albertson's Inc. - 4,500

4.       Hewlett-Packard Co. - 4,000

5.       St. Luke's Regional Medical Center - 3,030

6.       (tied) Boise School District -3,000

6.       (tied) micronpc.com - 3,000

7.       Saint Alphonsus Regional Med­ical Center -2,838

8.       Meridian School District -2,600

9.       J.R. Simplot Co. - 2,570

 

Source:  Each employer provided the figures.” As reported by John Tucker of the Idaho Statesman September 24, 2000.  (Ref. 105).

 

"AEA (formerly the American Electronics Association) issued its analysis of high-tech exports for the year 2001. That analysis indicated that high-tech exports declined worldwide by 15% from the year 2000. Exports totaled $189 billion, down $34 billion from the year 2000. One of the few bright spots was high-tech exports to China, which increased by 25% or $1.1 billion."  High-tech Exports Declined Worldwide, Except to China. Washington, DC –April 17, 2002. (Ref. 103B).  http://www.aeanet.org/pressroom/prtl_041702cyberexports.asp

 

Strategic Plan - Down Town Boise Association - DBA Goals and Initiatives for 2002-2005 - (Ref.106). http://www.downtownboise.org/about_us/dba_Strategic.htm

 

Maintenance & Service Initiatives

Communication & Member Involvement

Economic Development Initiatives

Governmental Affairs & Advocacy Initiatives

Event Initiatives

Marketing Initiatives

Financial Development Initiatives

Human Resources

 

Association for Leadership Development, Inc.  (Ref. 107).

http://www.ald-inc.com

 

Statistical descriptions of Idaho counties "from an economic development perspective. Characteristics that are important to a business location decision such as; labor force, community services, transportation, wages, communications, and education with key contact people included in these comprehensive reports." (Ref. 108).

http://www.idoc.state.id.us/idcomm/cntypro.html

 

Economic News from Tioga County - Cost of Doing Business Index -1999

(Ref. 109). http://www.tcdc-pa.com/page7.html

 

IDAHO UNEMPLOYMENT AND EMPLOYMENT

 

Annual Covered Wages, in Idaho, by Industry and County, Selected Years, 1990-1993 (in $1,000) (Ref. 110).   http://www.ets.uidaho.edu/idstats/chapter11/11-07b.htm

 

    "The Mountain region -- consisting of Arizona, Colorado, Idaho, Montana, New Mexico, Nevada, Utah and Wyoming has experiened Population and Job Growth Highest in Country during 1990 - 1995.  Compared with the average U.S. job growth rate of 1.73 percent from 1994 to 1995, Nevada topped the country at 5.95 percent. Utah rang in second at 5.29 percent, and New Mexico followed at 5.07 percent. Thus, the main concern for relocating companies is labor availability. With low unemployment rates in metropolitan areas -- 2.8 percent in Salt Lake City and 3.3 percent in Boulder, Colo. -- some companies are having problems getting skilled workers.  From 1990 to 1995, Nevada, Idaho, Arizona, Colorado and Utah posted the greatest population gains. Nevada topped the list with a 27.3 percent population increase, and Utah rounded out the group with 13.3 percent increase."  As reported by Laura Hardison.  "Population and Job Growth Highest in Country."  (Ref. 110). http://www.bizsites.com/1997/JF97/mtnregionrev.html

 

    The Treasure Valley's unemployment rate has remained about 3 percent for the past few years, compared with about 5.3 percent statewide April 2002 and about 4 percent nationwide.

 

1999 Metropolitan Area Occupational Employment and Wage Estimates SOC Major Groups in the Boise City, ID MSA - Robnett Properties, 1081 S. Star Rd. Star, ID 83669.  (Ref. 29).  http://www.impactrealestate.com/stats.htm

 

Management Occupation

Business and Financial Operations Occupations

Computer and Mathematical Occupations

Architecture and Engineering Occupations

Life, Physical, and Social Science Occupations

Community and Social Services Occupations

Legal Occupations

Education, Training, and Library Occupations

Arts, Design, Entertainment, Sports, and Media Occupations

Healthcare Practitioners and Technical Occupations

Healthcare Support Occupations

Protective Service Occupations

Food Preparation and Serving Related Occupations

Building and Grounds Cleaning and Maintenance Occupations

Personal Care and Service Occupations

Sales and Related Occupations

Office and Administrative Support Occupations

Farming, Fishing, and Forestry Occupations

Construction and Extraction Occupations

Installation, Maintenance, and Repair Occupations

Production Occupations

Transportation and Material Moving Occupations

 

Idaho, Area and County Unemployment Rates Idaho Department of Labor (Ref. 111).  http://www.labor.state.id.us/lmi/id-lmi.htm

 

April 2002 unemployment as a state total (Ref. 112). http://stats.bls.gov/news.release/metro.t01.htm

 

Civilian labor force            Unemployed Number        Percent of labor force

        March                     April                     March                    April                    March                    April

 

2001         2002       2001      2002p       2001      2002       2002      2002p       2001      2002       2002      2002p

 

Idaho

 

667.5      685.3      673.0     684.7          37.6       43.7        34.9       38.0           5.6          6.4          5.2         5.5

 

Boise City

 

244.7     251.9      247.0     249.7           8.5         13.1           9.2         11.4             3.5          5.2           3.7         4.6

 

 

Pocatello

 

40.9        41.6         40.9      41.2             2.0            2.6            1.7           2.5             4.8          6.4            4.2         6.1

 

p = preliminary. NOTE: Data refer to place of residence.

 

STATE AND REGIONAL UNEMPLOYMENT, 2001 ANNUAL AVERAGES (Ref. 113).  ftp://ftp.bls.gov/pub/news.release/srgune.txt

 

    "Annual average unemployment rates rose in more than half the states in 2001 for the first time since 1992, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The four census regions and nine geographic divisions all recorded rate increases. Employment-population ratios declined in 38 states and the District of Columbia. At the national level, the annual average jobless rate rose from 4.0 percent in 2000 to 4.8 percent in 2001, and the employment-population ratio decreased by 0.7 percentage point to 63.8 percent."  Friday, February 22, 2002. (Ref. 114).  http://www.bls.gov/lau

 

U. S./Idaho       Population         Civilian labor         Employed     Unemployed

                                  2000            2001       2000       2001       2000      2001     2000   2001

 

U. S.                          209,699  211,864  140,863  141,815  135,208  135,073  5,655    6,742

 

Unemployment Rate…………………………………….Error range of rate, 2001(1)

 

2000…………. 2002…………………………………….2000………………….. 2001

 

4.0                    4.8                                                       4.7                               4.9

 

U. S./Idaho       Population         Civilian labor         Employed     Unemployed

 

                                  2000      2001       2000       2001       2000      2001     2000   2001

 

Idaho                           951         969         658         682         626        648       32       34

 

Unemployment Rate…………………………………….Error range of rate, 2001(1)

 

                        4.9                 5.0                                          4.4                      5.6

 

U.S. Bureau of Labor Statistics - State at a Glance  (Ref. 115).

http://stats.bls.gov/eag/eag.id.htm

 

IDAHO & UNITED STATES EMPLOYMENT RAND California Average Industry Wage Statistics (Ref. 116).

http://ca.rand.org/stats/economics/avgwageUS.html

 

Idaho Department of Labor (Ref. 117).
http://www.labor.state.id.us/lmi/id-lmi.htm

 

U.S. Bureau of Labor Statistics - Idaho  (Ref. 118).

http://stats.bls.gov/eag/eag.in.htm

 

Idaho Department of Labor (Ref. 119).
http://www.labor.state.id.us/lmi/id-lmi.htm

 

Local Area Unemployment Statistics  (Ref. 120).

http://data.bls.gov/cgi-bin/dsrv?la

 

Local Area Unemployment Statistics (LAUS) May 16th, 2002  - "Program produces monthly and annual employment, unemployment, and labor force data for Census regions and divisions, States, counties, metropolitan areas, and many cities, by place of residence."  (Ref. 121).   http://stats.bls.gov/lau/home.htm

 

Idaho Employment Law Letter M. Lee Smith Publishers LLC (Ref. 122).

http://www.hrhero.com/idemp.shtml

 

County Statistics Lookup (Ref. 123).

http://www.mailerssoftware.com/County/County.asp

 

    "The Labor Department estimated Idaho's seasonally adjusted unemployment rate at 4.3 percent May 2000, down a tenth from March 2000 and over a full point below the rate a year ago.  The civilian work force remained at just over 671,000, but the economy still managed to create several hundred new jobs to account for the continued improvement in the labor picture.  More than 642,000 workers were on the job last month, the fourth straight month that total employment has set a new record.

 

    And that was 26,200 more people at work than in May 1999, the largest year-to-year gap since 1994 when statistical adjustment created a break that pre-cluded comparison with 1993 figures. 

 

    The unexpected strength in Idaho employment fall of1999, reflected in paycheck with-holding of state income taxes running 26 percent ahead of the previous year, has set the state on a page for its first annual average unemployment rate below 5 percent.  Through the first five months of 2000, the rate is averaging 4.3 percent, nearly a full point below the 1999 average and a half-point under the Labor Department forecast of 4.8 percent.  Analysts projected continued improvement into 2001, with the average rate falling another tenth.  And the strength was beginning to seep into the rural areas of the state.

 

    The downward movement in Idaho’s unemployment rate May 2000, stood in stark contrast to the increase of two-tenths of a point in the national rate in what was being seen as the most dramatic sign yet that the U. S. economy is slowing.

 

    The United States 4.1 percent jobless rate for May 2000 reflected the loss of 116,000 jobs in American business, the worst showing in nearly nine years. 

 

    Fourteen of the 44 counties had jobless rates above 6 percent in May 2000, two less than April and four below the February count, while eight rural counties had rates below 4 percent, the same as the previous month.  But Adamas, Benewah, Clearwater and Shoshone counties – all with heavily resource dependent economies – continued to post double-digit jobless rates.

 

    Idaho Economic Forecast, issued by the state Division of Financial Management, indicated non-farm employment grew by 3.5 percent during 1999 – significantly faster than the 2.7 percent estimated at the end of 1999.

 

      Job databased on wage and salary reports rather than on sampling, show that employment was growing at an accelerating rate over the course of 2000,: said Mike Ferguson, Idaho’s Chief Economist.  "Quarterly data indicate job growth rose from 3.6 percent in the first quarter of 1999 to 4.4 percent in the fourth, and preliminary data for the first two months of 2000 painted a similar picture, with growth in the 4.5 percent range," stated by Mike Ferguson, Idaho’s Chief Economist.

 

    In 2001, the state forecasts job growth of 3.4 percent –compared to December estimate of 2.1 percent for 2000.  The preliminary outlook for 2001 was 2.1 percent (New construction in Ada & Canyon County increased construction employment).  John Church, a private economics consultant, Idaho Economics, at the Boise Metro Chamber’s Economic Outlook Forum 2000, "said that statistically Idaho shows strong economic growth, but cautioned that areas outside the Treasure Valley have not shared in the wealth.

 

    "John Church noted that 11 of the 44 counties are declining in population, even though the state gained an estimated 1.7 percent last year.  Church said declines in the state’s traditional industries and the increased impact of global markets “are producing an uneven distribution of economic activity across the state.”  While manufacturing created more than 20,000 jobs in 1998 – 99, those gains have been to some extent offset by losses in natural-resource based industries,” Church said.  The new Idaho data show a continued trend toward service producing sector jobs."

 

    In 1969, 43 percent of Idaho's work force was in the rural communities. Now, less than 32 percent work in rural Idaho, and almost 70 percent of the state's jobs are in Ada, Canyon and five other counties."  As reported by Bob Fick, of The Associated Press of Idaho Statesman September 11, 2000.  (Ref. 47).

 

    “July 2000, 16,760 people were working in construction jobs in the Boise Metropolitan Statistical Area – which includes Ada and Canyon Counties – compared with 15,890 in 1999, according to Labor Department statistics.  This is a 5.6 percent increase.  Jobs in heavy construction accounted for a major portion of the increase, with 3,440 people working in heavy construction July 2000, compared with 2,890 a year ago. "  As reported by John Tucker of the Idaho Statesman September 9, 2000 “Construction booming.:” (Ref. 18).

 

    "During the first half of 1999, Idaho’s non-agricultural employment was increasing at a rate of 2.7 percent.  The official numbers came in lower at 2.4 to 2.7 percent.  Late in 1999, the official employment figures were revised upward.

 

    Idaho’s overall non-ag employment posted a very strong 3.4 percent gain in 1999.  The U. S. average that year was 2.2 percent; making Idaho the sixth fastest growing state in the nation in non-ag jobs.  In the twelve months ending August 2000 the state continued to exhibit strength; non-ag employment growth statewide averaging 3.9 percent.

 

    Non-agricultural employment in the Boise Metropolitan Statistical Area (MSA) increased by 4.1 percent in 1999 creating an additional 8,400 jobs in the area.  However, as with the state, some industries in the Boise MSA experienced job losses in 1999.  As of November 2000 Lumber industry employment in the MSA was down nearly 5.7 percent from year-earlier levels.  The Boise MSA absorbed the brunt of the state’s loss in Machinery manufacturing employment; all 600 jobs lost were within the MSA.  In addition, Transportation Equipment manufacturing turned downward in 1999 with a loss of 5 percent (100 jobs).  However, the Food Processing Industry posted a gain of 3.4 percent (200 jobs) in 1999 after a loss of nearly 500 jobs in the two prior years.

 

    For the twelve months ending August 2000, non-ag employment in the Boise MSA increased by close to 4.6 percent, creating 9,600 new jobs compared to the prior twelve-month period.  While this is not the 6.7 percent pace of non-ag employment growth that Boise experienced in 1993 and 1994, 2000 estimates were over twice the national rate and Boise was one of the fastest growing MSA’s in the nation.

 

    Idaho’s Mining industry continued to post employment losses due to the on-going weakness of precious metal prices.  2000 was the third consecutive year, and the sixth year of ten in which Idaho’s Mining industry experienced employment losses.  The state’s Lumber and Wood Products Industry  experienced its sixth consecutive year of employment losses in 2000, as restrictions on timber harvest and high stumpage prices continued to squeeze profits.

 

    The slide in employment in Idaho’s Railroad Transportation industry came to a halt in 1999 after the loss of nearly 200 jobs over the previous two years.  Federal Government employment in the state posted a loss of 0.8 percent in 1999, the second year in a row.

 

    Employment gains in the industries of Transportation, Communications and Utilities (TCU) remained strong for several years proceeding 2000.  Boise MSA employment in TCU increased by 5.8 percent in 1999.  For the twelve months ending August 2000, TCU employment in the MSA was increasing at the healthy rate of 5.2 percent.

 

    The Finance, Insurance and Real Estate (FIRE) sector posted a gain of 3.6 percent in the Boise MSA during 1999.  As of November 2000, employment gains in FIRE were a modest 1.8 percent.

 

    Idaho’s employment growth was surging in 2000, due to renewed growth in many of the state’s high-tech markets. The outlook for 2000, 2001 and into 2002 is for a continuation of the relatively strong growth in the state’s overall employment.  However, this hinges upon continued economic improvement in the economies of Southeast Asian and Latin American countries, and no further worsening of the situation in the Middle East.

 

    By year-end 2000, Idaho’s non-agricultural employment was expected to have increased by 3 to 3.2 percent over 1999 levels.  However, increases in fuel costs and continued trouble in the state’s agricultural industry, combined with further slowdowns in the Lumber and Wood Products and Mining industries, was expected to slow overall non-ag employment growth in the state to 2.2 to 2.6 percent pace in 2001 and 2002.” As reported by John Tucker of the Idaho Statesman September 24, 2000.  (Ref. 124).

 

Boise Metropolitan Statistical Area Employment (Ref. 124).

     

(Employment in Thousands)                                              1995                                        1999

 

Civilian Labor Force                                                           198.9                                       228.4

Total Unemployment                                                               6.6                                           7.9

Unemployment as a Percent of Labor Force                     3.3%                                       3.5%

Total Employment                                                               192.3                                       220.4

 

Total Non Farm Employment                                            179.0                                      211.1

Construction and Mining Employment                             12.9                                      15.1

Manufacturing Employment                                                 31.7                                      36.6

Lumber & Wood Products                                                      3.7                                          3.7

Fabricated Metals                                                                     1.2                                         1.1

Industrial & Commercial Mach. & Computers                  7.1                                          8.0

Electronic & Other Elec., Equip. & Computers                 7.2                                       11.0

Transportation Equipment                                                       1.8                                          1.9

Food & Kindred Products                                                       6.4                                           6.1

All Other Manufacturing                                                         4.0                                           4.8

Service-Producing Industries                                             134.4                                       159.4

Transportation, Communications & Utilities                       8.6                                          11.0

Trade                                                                                         43.0                                          50.9

Finance, Insurance & Real Estate                                        11.7                                          11.3     

Services & Miscellaneous                                                     42.9                                          54.0

Government                                                                             28.1                                          32.2

 

Source: John Church, a private economics consultant, Idaho Economics, at the Boise Metro Chamber’s Economic Outlook Forum 2000 and printed in the November 2000 issue, Volume 8, No. 4 Metro Boise Metro Business Barometer 2000 Review & 2001 Outlook. (Ref. 124).

 

    "In the first and second quarters of 2001, nonagricultural employment in Idaho posted gains of 2.7 percent and 1.4 percent, respectively, over the first and second quarters of the previous year. In the third quarter of 2001, non-ag employment growth in the state slowed further, to a 0.9 percent gain over figures for the third quarter of 2000."

 

    That means a gain of about 5,000 jobs annually statewide, when compared to the second quarter of 2000. Of those 5,000 new Idaho jobs, 6,500 were created in the Boise Metropolitan Statistical Area -- Ada and Canyon counties. Yes, the other 42 counties in Idaho, in total, lost 1,500 jobs over the last year.

 

    Manufacturing employment in the state declined again as payrolls in the third quarter of 2001 were off 1.2 percent -- a loss of nearly 900 jobs -- from the third quarter of 2000. The third quarter of the year is usually the annual peak of the state's manufacturing industries. From this point on, it is historically a downhill ride for manufacturing employment until the second quarter of the next year. The Boise MSA, with its large high-tech manufacturing base, has not fared significantly better than the state as a whole in terms of manufacturing job losses in the past year.

 

    While most other employment categories in Idaho posted positive employment gains in the third quarter of 2001 when compared to the same period in 2000, those gains could be easily termed "anemic" when compared to the state's recent past. Construction and Mining posted a 0.8 percent annual gain, as did Government employment. The Finance Insurance, and Real Estate category posted a 0.4 percent gain in spite of strong residential refinancing activity in the state. The Service sector's 2.9 percent employment growth in the third quarter of 2001, when compared to the third quarter of 2000, was lackluster when examined in the light of its 6 percent average rate of employment growth in 1999 and 2000.

 

    Perhaps the most troubling employment statistic in the third quarter of 2001 was the 0.1 percent employment growth in Idaho's retail trade sector. In 1999 and 2000, retail trade employment in the state averaged nearly a 4.0 percent gain each year. Retail trade employment in Idaho peaks in the fourth quarter of the year with the annual surge in holiday buying. Thereafter, it falls precipitously in the first quarter of the year. A softening of retail sales as the Christmas season approaches will not be good news to merchants."  John S. Church, Special to the Idaho Statesman. "The Idaho Economy 3rd quarter," October 28, 2001. (Ref. 125).   http://www.idahostatesman.com/news/special-section/quarterlyeconupdates/archive/177583.shtml

 

High Tech Industry Source - Cyberstates 4.0: A State-by-State Overview of the High-Technology Industry."  Produced by the American Electronics Association (AEA).  Represents 1998 Key Industry Statistics (AEA source: U.S. Dept. of Commerce & U.S. Dept. of Labor).  (Ref. 126).

http://www.sun.com/aboutsun/policy/idaho.html

 

High-tech jobs                                                                       24,807

High-tech payroll                                                                 $1.1 billion

Average high-tech wage                                                      $44,552

(Average private sector wage)                                           ($24,555)

 

State Ranking (Ref. 118).

 

In high-tech employment                                                    34

In high-tech average wage                                                 30

Number of people out of every 1000 private

sector workers employed in high-tech firms    58

 

Trade (Ref. 118).

 

High-tech exports                                                                $1.5 billion

Total exports                                                                         $2.2 billion

High-tech percentage of total exports                              68%

 

United States & Idaho Tourism Growth & Job Growth   

 

    "Travel Industry of America in 2000 announced:  “Several hundred thousand executive-level jobs in the travel and tourism industry are expected to be created by 2005, and growth should be most rapid in the amusement and recreational services segment, followed by the food and beverage segment, the lodging segment, and the air-transportation segment.  (Ref. 127).

 

     Gary Mahan, director of the Idaho Department of Commerce, said Travel Industries of America “informs people about the tourism industry’s importance to Idaho.  Tourism really creates the opportunity to understand other people.   It promotes peace and friendship.  The state’s $2 billion tourism industry is its third largest, behind agriculture and manufacturing.  It employs more than 24,000 people.  With Idaho having the largest wilderness area in the continental United States, this attracts U. S. and foreign tourists to the state.  Cultural tourism is popular among tourists who want to experience Idaho’s way of life – harvesting potatoes, floating down a river or living on a dude ranch.  European visitors also travel to Idaho to enjoy hiking, camping and snowmobile.  They love to come here.  In the United States, we’re seeing people from the West Coast and the Eastern states because of the undiscovered beauty of Idaho.”  Julius Tigno of the Idaho Statesman. (Ref. 128).

 

   “Idaho’s tourism 25,000 jobs as of December 2000 resulted in a payroll of nearly $300 million annually.  Thousands of highly skilled, career-oriented positions are also created.  In the MSA, lodging alone as of December 2000 supported nearly 3,000 jobs and generates a payroll in excess of $35 million.  National research indicates that lodging represents an average of 22 percent of all visitor spending."  As reported by Holmes Lundt, V.P., Extended Systems, and President, Portsmith, at the Boise Metro Chamber’s Economic Outlook Forum 2000.  As reported by Holmes Lundt, V.P., Extended Systems, and President, Portsmih, at the Boise Metro Chamber’s Economic Outlook Forum 2000. (Ref. 101).

 

    "The unspoiled quality of much of Idaho's land has nourished one of the youngest of Idaho's businesses—the tourist trade. Sun Valley, one of the nation's best-known year-round vacation spots, is an example of the development of resorts in Idaho. Mining, once the major source of income, and still economically important, produces phosphates, gold, silver, molybdenum, antimony, lead, zinc, and other minerals.  (Ref. 129).

 

    Sun Valley, mountain resort city is a popular year-round resort with both winter and summer sports. It was founded as a ski resort in 1936 by W. Averell Harriman, then board chairman of the Union Pacific RR.  The railroad purchased the land and built the resort to attract more passenger traffic to the West. In 1964 it was sold to a land development corporation; in 1967, Bill Janss, a former Olympic skier, became sole owner. The Hemingway Memorial, on a bluff overlooking a swift-flowing trout stream, was dedicated in 1966. (1990 pop. 938), alt. c.6,000 ft (1,830 m), Blaine County., S. Central Idaho."  Factmonster.  (Ref. 1N).

http://www.factmonster.com/ce6/us/A0858738.htmlv

 

    "Sandpoint and Bonner County’s economy has long depended on the timber industry. But starting in the late 1980s summer and winter tourism and recreation began to grow rapidly, particularly with the 1990 major expansion of the Schweitzer Mountain Resort.  (Ref. 130).

 

    Tourism employment in Sandpoint normally reaches its high point of the year in August, falls to its lowest level before Thanksgiving, rises to its winter peak between Christmas and New Year’s, and then falls to its lowest point in April. For example, tourism employment peaked at 1,844 in August 1999, fell to 1,348 in November, rose to 1,720 in January 2000, and fell to 1,470 in April.

 

    The significant soft spot, however, that continues to plague Sandpoint, Idaho economy and North Idaho jobs generally, is volatile seasonal unemployment. Employment in Sandpoint typically peaks in late summer then falls to its lowest level in spring when muddy roads hamper logger access to forests and winter tourism fades with the end of the ski season. In 1999, for example, the county’s unemployment rate peaked at 14.2 percent in March and fell to 6.4 percent in September.

 

    This predictable volatility has much to do with the fact that in 1998 Bonner County’s per capita income stood at $22,632 while the state of Idaho’s per capita income was $26,040 and U.S. per capita income was $33,344.

 

    The history of Coldwater Creek is a case in point. The nationally acclaimed company, headquartered in Sandpoint, Idaho, is a multi-channel retailer of women’s apparel, gifts, jewelry, soft home goods and accessories sold through direct mail catalogues, full-line retail stores and the internet.

 

    The vision for Coldwater Creek can be attributed entirely to Sandpoint residents Dennis and Ann Pence, cofounders of the company in 1984. By 1997 Coldwater Creek became Bonner County’s largest employer, with average monthly employment exceeding 700 individuals. This year the company’s Sandpoint payroll will be in excess of $21 million. In fact, Coldwater Creek now supplies an incredible seven and one-half percent of the total amount of women’s clothes purchased in the United States on the Internet.

 

    The county’s largest manufacturers, which do not produce lumber or other wood products, are Litehouse (salad dressing and sauces); Encoder Products (electronic); Cygnus (metal fabrication products); Pend Oreille Printers; and Thorne Research Products (nutritional supplements)."  Sandpoint, 1009 Hwy 2 West Suite C, Sandpoint, ID 83864. (Ref. 130).  

http://www.sandpoint.com/business.asp

 

UNITED STATES UNEMPLOYMENT/EMPLOYMENT

 

STATE AND REGIONAL UNEMPLOYMENT, 2001 ANNUAL AVERAGES ftp://ftp.bls.gov/pub/news.release/srgune.txt

 

    "Annual average unemployment rates rose in more than half the states in 2001 for the first time since 1992, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The four census regions and nine geographic divisions all recorded rate increases. Employment-population ratios declined in 38 states and the District of Columbia. At the national level, the annual average jobless rate rose from 4.0 percent in 2000 to 4.8 percent in 2001, and the employment-population ratio decreased by 0.7-percentage point to 63.8 percent.

 

    As the nation moved into a recession, most states experienced rising unemployment rates. Compared with 2000, jobless rates in 2001 were higher in 42 states and the District of Columbia, lower in 7 states, and unchanged in 1 state. Eighteen states reported rate increases of 1.0 percentage point or more. Of these 18 states, 6 were located in the Midwest, 5 each were in the South and West, and 2 were in the Northeast. North Carolina had the largest increase (+1.9 percentage points), followed by Michigan (+1.7 points) and South Carolina (+1.5 points). Fourteen additional states and the District of Columbia recorded rate increases of at least one-half percentage point from 2000. In sharp contrast, only two states experienced declines of 0.5 percentage point or more in their annual average unemployment rates--West Virginia's rate was down by 0.6 point, and Delaware's rate declined by 0.5 point. Despite the recession, the 2001 unemployment rates in three states were the lowest annual rates in their series: Montana, 4.6 per- cent; New Mexico, 4.8 percent; and West Virginia, 4.9 percent. (All annual state series date back to at least 1976.)

 

    In 2001, the states with the highest jobless rates were located in the Pacific division. Washington registered the highest rate, 6.4 percent, followed closely by Alaska and Oregon, 6.3 percent each. (The District of Columbia's rate was 6.5 percent.) Louisiana, at 6.0 percent, was the only other state to record a rate over 5.5 percent for 2001. North Dakota posted the lowest annual average unemployment rate, 2.8 percent, followed by Ne- braska, 3.1 percent. Overall, 30 states had unemployment rates below the national average, while 18 states and the District of Columbia reported higher rates. All seven states in the West North Central division and all six in New England had rates below the U.S. average. Four of the five Pacific states and three of the four states in both the East South Central and West South Central divisions recorded rates above the national average.  (Ref. 131).

 

Regional Unemployment  (Ref. 131).

 

    For the 10th consecutive year, the West registered the highest regional unemployment rate, 5.2 percent.

 

    The Northeast reported the lowest rate for - the first time in 11 years, 4.4 percent, a position held by the Midwest since 1991. The range between the high and low regional unemployment rates narrowed slightly. The last time the difference between the highest and lowest regional rates was this small, 0.8 percentage point, was in 1991. The Midwest and South had the largest rate increases from 2000 (+0.9 per- centage point each), while the Northeast and West posted smaller increases (+0.5 and +0.6 point, respectively).

 

    Among the nation's nine geographic divisions, the Pacific division, at 5.5 percent, registered the highest jobless rate for the 10th consecutive year. The East South Central division had the only other rate over 5.0 percent--5.1 percent. For the second year in a row, New England recorded the lowest unemployment rate, 3.7 percent, followed by the West North Central division, 3.9 percent. The East North Central and South Atlantic divisions posted the largest over-the-year rate increases (+1.0 percentage point each), followed by New England (+0.9 point). The Middle Atlantic division had the smallest jobless rate increase from 2000 (+0.4 point)" (Ref. 131).

 

COLUMBIAN BASIN 99 COUNTIES EMPLOYMENT

 

    "Despite a total of 267 mill closures between 1989 through 2000, with nearly 21,000 lost jobs across the four states of Oregon, Washington, Montana & Idaho.  Two thirds of the job losses were in Oregon. 

 

    While the counties outside the Columbia Basin lost more jobs due to mill closures 13,236 vs. 7,671 – the Basin’s job losses represented a more significant share of jobs.  The Basin accounts for about 3.4 million persons, or 30% of the four states’ combined population of 11.2 million (spanning Idaho, eastern Oregon and Washington, and western Montana).  The Basin self-employment income indicates a community that possesses a high level of entrepreneurial activity and a significant number of available economic opportunities.  The border four-state region is being driven by high-tech growth, primarily occurring within Boise, Portland and Seattle metro areas.  Per capita incomes within the Columbia Basin area have generally been increasing, albeit with rural counties often lagging behind metro areas.  However, income growth throughout the Columbian Basin region (whether a metro a rural community) has lagged behind income growth being experienced in the border four-state region and the nation.  While rural communities on a whole appear to be slightly gaining in per capita income (after adjusted for inflation), this is not true for all communities.  Rural communities experiencing significant increase in income (adjusted for inflation) once again are resort communities with high amenity values that appear to be attracting more affluent older populations, such as Sun Valley, Idaho which had a per capita income of $33,000.00 in 1997.  Public assistance payments in eastern Washington counties represent over 6% of income compared to the average for all counties in Idaho (3.2%).  Labor force participation rates within the Columbia Basin are generally on par with the border four-states and the national averages.

 

    The job base in the Columbia Basin has increased at an average rate of 3.1% annually between 1990 and 1997 – slightly above the four-state average, and nearly twice as fast as the nation.  Rural areas are growing slower than metro areas in the region, but at a slightly faster pace than the boarder four-state area.  The highest assesses value per capita (at $247,700) occurs within Blaine County, Idaho, which is home to the Sun Valley resort.  Only 50% of personal income for the Columbia Basin now comes from wage and salary sources- the remainder is from self-employment, investment and transfer payment income." The Columbian Basin Socio-Economic Assessment Team of Barney & Worth, Inc. & E. D. Hovee & Company from an Award (no. 07 69 04203) from the U. S. Department of Commerce Economic Development Administration. (Ref. 132A).

 

COLUMBIAN BASIN LAND RESTRICTED FOR DEVELOPMENT

 

       While Boise has limited room to expand, the area proposed known as Montebello is wide open and presents a great investment potential, due to the low cost of land and abundant water resources.  Areas such as Nampa and Caldwell to the west require 30 minutes commute to the Micron Technology Plant.  This proposed project is less than half that far away.

 

    Residential subdivision expansion throughout Ada County and Canyon County is slowly proceeding and many issues relating to property owner’s rights, city density per acre, city annexation, infrastructure cost, etc., is of utmost importance to citizens of both counties.

 

    New home construction in Boise is not occurring on a mass scale as the infrastructure cost for new development is much greater then PC development and available ground for residential subdivisions is scarce close to the existing utility infrastructure of the city.

 

    "In the 99 county’s of the Columbian Basin Socio-Economic Region of the United States, Boise the largest city of Ada County is faring better then other county’s economically, yet the 99 county region has limited growth potential within it’s major cities without annexing farmland which is publicly debated.      When we evaluate the actual percentage of lands in the control of Federal and State Agencies, that cannot be developed for residential or commercial use; those areas that can be developed and at a reasonable (inexpensive) cost in comparison to those cost presently in existence in Boise and Meridian for residential subdivisions, should be acquired if only to set on the lands, selling for double the price in the future, especially if the area chosen is a perfect location for a future PC, with water and utilities readily accessible.

 

     Over half the land (54%) or (55% in rural counties) is owned or managed by federal agencies – primarily the U. S. Forest Service (USFS), Bureau of Land Management (BLM), and Bureau of Indian Affairs BIA).  In Washington alone, over 1.1 million acres are enrolled in the regular CRP Program, while another 48,000 acres are enrolled in the continuous CRP Program which targets agriculture land for conservation buffers.  By comparison, nationwide only 23% of the land is owned or managed by these three agencies.  While the average of federal land ownership for the Columbia Basin is 54%, some counties have over three-quarters of their land under the ownership and management of federal agencies.  Since such a significant portion of the land is controlled by the federal agencies, federal land polices can be expected to have a disproportionately impact on this region – especially within rural counties.  Even these figures may understate the impact of federal polices.  A number of federal agencies that are active within the Columbia Basin were not studied as a part of this regional assessment.  These agencies include major property owners and other influential departments whose policies impact the Columbia Basin: 

 

    National Parks Service, Department of Defense, department of Energy, U. S. Fish & Wildlife Service, National Marine Fisheries Service, Environmental Protection Agency, and others.  The effects of adding these agencies to the regional assessment night demonstrate still greater federal impacts in the Columbia Basin.  There are 15 American Indian tribal/reservations located within the Columbia Basin Region with a total population of 73,700 – just 2% of the region’s counties population."  The Columbian Basin Socio-Economic Assessment Team of Barney & Worth, Inc. & E. D. Hovee & Company from an Award (no. 07 69 04203) from the U. S. Department of Commerce Economic Development Administration. (Ref. 132B).

 

 

BRUCE WAYNE HENION PROFESSIONAL HISTORY

CHAPTER II

 

Referrer to About Us on http://www.uscarrierhistory.com

 

 

MONTEBELLO A PROPOSED PLANNED COMMUNITY DISTRICT OR MUNCIPILIATY & GROWTH OF TREASURE VALLEY & CITIES OF ADA AND CANYON COUNTY IDHO

CHAPTER III

 

 

    Planned Communities Districts (PCD), paving the way for municipalities will one day be policy rather then creation and those pioneering in an area critically debated will pave the way for future generations and an energy efficient America.

 

    Sun River Investment Inc. (SRI) objectives were established to identify areas of America illustrating future growth.  Although most geographic parts of the United States economy seem to be growing well, there are some areas that offer unusual opportunities for sustained growth, with factors that indicate a thriving local economy for years to come.  Once SRI identified areas illustrating population and industrial growth, policies were established in order to create developments in geographic markets indicating patterns of long-term sustained growth.  In particular, SRI proposal is to create a PCD with a balanced mix of residential, commercial, industrial, private lakeside homes and if an additional 1,435 to 3,000-acres were purchased, County approval for an eventual golf course, five star luxury hotel, air/truck/rail transportation and distribution center would be sought after.  Approximately 5,218 to 8,218-acres are available for purchase by owners desirous to sell.

 

    Very seldom in life do we have the chance to be a part of something that will provide so many opportunities for so many people?

 

    Ada and Canyon Counties of Idaho are growing above national averages.  There are many considerations Cities face to include expansions cost; city annexation of farmland; population of city based on unit density per square acre; cost of services and maintenance; car miles traveled to and from work (stop lights in between residence and work); public transportation; police and fire stations for additional residences; businesses and population; streets and roads; and utilities and wastewater treatment plant expansion. 

 

    Public debate and court decisions protecting the rights of farmers is an issue of great debate and affects the growth of cities, further suggesting PC’s are the way of the future.

 

    There are those that believe Hidden Springs is the worst example of urban sprawl to come to Treasure Valley in the past few years.  Opponents to PC’s believe communities so far outside the city limits of Boise is bad planning because they increase the necessity for additional use of the automobile for shopping, transportation to schools (since there is no longer a school in Hidden Springs), and additional costs are often borne by the community as a whole, not just the residents of Hidden Springs as expressed by Clyde Everton of Boise. 

 

    Opponents to PC’s don’t understand the future impact PC’s will have in America.  As the population of the community grows, so will the services and eventually there will be a school reestablished in Hidden Springs to include commercial enterprises.  To merely suggest that cities should become larger at the expense of the residents, city and farming communities is ridiculous.  Hidden Springs conservation design was adopted allowing for open space and the unintentional conservation design of the Boise River Greenbelt is a prime example of large belts of open space.  Hidden Springs tax-base for Ada County will grow as well.

 

    There are numerous developments nationwide that implemented conservation designs in their communities.  Arranging homes into clusters on smaller lots, with each home situated to take advantage of a view of permanently protected open space, which could include a farm, wildlife habitat, pond or park is possible with the creation of a PCD and the area proposed known as Montebello already has ponds, open lands and areas for small lakes.  Ponds and Parks are envisioned throughout residential subdivisions and the ponds while providing decorative substance to the community, could be utilized for wastewater disposal treatment of the communities’ sewage.     

 

    The proposed PCD has potential of becoming a model PCD offering a mixture of residential, commercial, manufacturing, industrial areas, stores for shopping and facilities for recreation and entertainment, parks, etc.; designed for the community as the community grows, with growth projections of business development clearly defined in a 10 year master plan.

 

    There is no short answer or quick understanding as to weather SRI’s proposed PC meets the requirements for investor’s participation.  Montebello Business Plan prepared by Sun River Investment Inc. introduces Seidler-Fitzgerald proposed local municipal district bond revenue financing for proposed PCD infrastructure. 

 

Business Plan discloses all pertient information's to include Property appraisals, financials', Infrastructure contractor with 20-million bond capacity, PCD designer and Project Operations Manager, Skyline Development Inc.

 

The proposed PCD in the Southwestern region of Idaho will relieve the present burden of expansion Canyon and Ada County cities are forced to reckon with because of population growth presently experienced in Meridian, Boise and Nampa Idaho.  High Tech and manufacturing jobs in the area has resulted in employment opportunities with business expansion continuing.  Idaho is seen as a relaxed and friendly state and people are attracted to down to earth people.  The major political party in Idaho is republican and even those that call themselves democratic are in reality republican-democratic.  Of course there are those that may announce themselves publicly as being democratic.

 

    The demand indicators for the proposed PCD’s location, fair and reasonable price guarantees that if you do nothing with the land, within six years the value of the land would double to $10,500.00 per acre.

 

    Land in surrounding cities of Ada County capable of providing residential subdivision areas are not cheap.  Boise developers pay a high price for land and often must wait until the city extends wastewater treatment disposal services.  Farmers are turning down $10,000 per acre in Canyon County and others have gone to court in order to be able to develop their land.  Residential and farmland doesn’t mix well, to many smells and urbanism.  Meridian residential lots in new development areas are $50,000.00.  Montebello's small lots could start as low as  $33,000.00.

 

    There are many options open to new community development.  Cities tax base increases with additional residential and businesses, yet people are looking for affordable homes in areas that have all their needs provided for without driving a great distance to shop for goods. 

 

    Communities with schools close to subdivisions, allowing children to walk to school for exercise and reducing long miles traveled on hundreds of buses for children is cost effective and when buses are utilized, a single bus can drop off and pick children up from several subdivisions in the course of a morning and visa versa in the afternoon.  Public buses traveling throughout the community on designated stops throughout the day allowing citizens that don’t drive the opportunity to shop, work or travel to the central park is seen as an added benefit for community opportunities.  50% of Americans are either to young or old to drive.  A PCD can be a healthy environment for raising your children.  City related crime problems starts out zero for example.  Community and parenting polices will determine weather your community will have a future crime problem and recreational activities for the communities youth a top priority.  

 

    Access to recreational activities, tradesman and technical schooling will dedicate weather your children will be a part of the crime seen.  Education is the key to any successful community or society.  PCD allows for the opportunity of direct community involvement with civic affairs managed by the community citizens.  County Districts Fire Departments will provide fire response and expansion for community fire station and a voluntary Fire Department and or Police Department brings citizens together, offering an occasional bingo at the Fire Hall.  Distance fire truck would travel to any incident would be 6 to 10 miles, dependant upon the total square mile radius of the PCD.  PCD’s residents can request the Sheriff’s office to take up residence in the community if a self-managed volunteer police force isn’t the goal of the community.  Montebello would encompass 6-miles radius or greater, dependant upon future growth of the community, and city incorporation by the residents if ever, determining city limits or  “area of impact” would be decided by the citizens of a PCD. 

 

    Many factors must be considered in order to determine the right location for a PCD.  Montebello’s location was based on:

 

     Access to a freeway truck by-pass that runs through the project east to west makes commuting to down town Boise or Caldwell attractive.  A new highway connecting the area directly to the Micron Technology Plant to the northeast about 6 miles of the proposed project is planned;

 

    Properties access to I-84 interstate and future access to two structures

and five ramps along with the reconstruction of I-84 east-and westbound lanes, increasing traffic near the proposed PCD.  Noise walls will be constructed at various locations throughout the project.  Project completion scheduled in the fall 2004. http://www2.state.id.us/itd/ida-road/index.asp;

 

    Abundant water resources: Fourteen wells and an under ground lake on

a large portion of the 5200-acre project reduces the cost of water lines extending from a main water supply.  Drill a well wherever it's need;

 

    Distance from Boise and High Tech Employers;

 

    Idaho's Growth;

 

    Infrastructure cost is lower then Boise, Meridian, Nampa or Caldwell;

 

    Willingness for property owners to sell;

 

    County recognition of PCD’s disclosed in Chapter IV;

 

    Wide open space and association with near by BLM lands disclosed in Chapter V.

 

    Existing ponds and area available for small lakes;

 

    Distance from “area of impacts” of other cities;

 

    Fire Department presently in the area of the proposed PCD;

 

    Other proposed developments in the area in the last 30 years;

 

    FAA approved Airport site;

 

    Association with Hans Borbonus 3 full golf course complex less than 2 miles    

    to the north: 

 

   "Falcon Crest Golf Club, the signature course in what will be the most  

unique and exciting golf complex in the Northwest.

 

    Falcon Crest, truly a championship course, offers a challenge to golfers of all skill levels. Unhurried play, a sea of grass and open space, majestic vistas of the Boise valley and surrounding mountains, and course design that blends the natural terrain with water, grass, sand and stone make each hole a memorable experience.

 

    A second course designed for the beginning golfer and junior player is under construction. It will allow aspiring young golfers to participate in the training program offered at the complex, and play on this course will be offered at a reduced price.

 

    A third course will be a links style course that will have a wide-open feel that's sure to be a walker's delight.

 

    Practice your golf on our 30-acre driving range which includes a number of practice bunkers and an 18,000 sq. ft. putting green.

 

    Hans Borbonus, the inspiration, designer and developer of the total golf complex, has been exacting in the planning and construction of each phase of the project... The complex will be a delight to golfers of all skill levels and economic means, as well as being available for prestigious events of statewide and national interest." 11102 S Cloverdale Rd, Kuna, Idaho 83634, (208) 362-8897.   http://www.falconcrestgolf.com

 

    Various Idaho economy demand indicators were explored, outlined within the Introduction and addressed in detail within Chapter I & III.   Impact of the proposed PCD due to the location will have a regional impact on the Southwestern region of Boise Idaho; and in comparison to other cities of Ada and Canyon County, the proposed PCD is hot and ready for development.

 

    Others believe the area chosen is ready for development and Ted Johnson of Skyline Development Company, a Boise based residential and commercial development company, is no stranger to the area chosen for the proposed PCD and Ted Johnson made the following comments August 2000:

    

     “Thirty-three years ago I saw the opportunity of helping build Boise into the wonderful community it is today.  Boise has grown from a small frontier community in 1864 to a business, governmental and recreational hub of importance in the West.   Our growth status is real and impressive.  Our quality of life is exceptional and our people are talented, family oriented and sharing.

 

     Our specialty is residential development, almost four thousand home-sites so far, and an impressive commercial complex (160-acres) known as the Boise Research Center established by Skyline Development Company in 1993.

 

    In the Boise Office, Vice President Tucker, our second son, is managing day-to-day activities with a little help from me now and then.

 

    Paul, our eldest son, is operating the Lyndon Utah Office, with a major project west of Leki, Utah, working with Salisbury Homes in a project known as Harvest Hills (1400 dwelling units), and is having continuing success. 

 

    Back in 1966, I became aware of an opportunity to “homestead” a large tract of land south of Boise.   I got title to the land and lots by drilling a well, applying water to the newly turned soil and raising a crop of alfalfa.  This 400-acre parcel was sold to Herbert Blaser, the son of Albert Blaser, who is a practicing dentistry.  I know the land, I know the area and I am personally convinced that it is time for a large development in that area.

 

    There is no more room for growth inside Boise.  Meridian is extremely difficult to work with, as is Eagle.  Ada County is almost as good as Boise, but better than the other jurisdictions in the area.  Hence I favor pressing south of town (we have 4 parcels in that area already) and the area is next in line.” 

 

    Skyline Development Company could very easily develop the proposed Planned Community. Boise Research Center, a high-tech 160-acre complex and residential subdivision development and over 3,900 lot developments, establishes Skyline Development Company as one of the largest developer in the Boise area.

 

       Skyline Development Company has been cited as one of a handful of developers who have “Changed Boise” (The Idaho Statesman).    

 

   When Cities were created in Ada County, expansion took into consideration “areas of impact” allowing for growth and municipal airport district.  Cities of Ada County are experiencing sprawling and expansion is expensive.  The area proposed consisting of 5,280 to 8,280-acres has many square miles of non-developed lands and acres associated with BLM lands are available for purchase and better suited for the area FFA approved airport site.

  

MONTEBELLO A PLANNED COMMUNITY DISTRICT

 

    The proposed Planned Community lies south of the Desert View Subdivision, which is a one-acre project with single-family homes with its own central water facility and 8 to 10 miles Southwest of Boise and 5 miles east of the ‘area of impact” of the town of Kuna, Idaho with an estimated population of 5,438.  Other cities distance from the proposed Planned Community: 

 

    Nampa is 20 miles to the West, with a population of 50,000; Caldwell is 30 miles to the West, with a population of 30,000; Meridian is 14 miles East & South, with a population of 23,596 and Silver City, at one time the largest silver mine in the West in Silver Valley is 45 to 50 miles with a population of 500.  Silver City is 35 miles from Idaho City, a small resort community known for it’s past in silver mining and the first penitentiary of Idaho, now a museum.  McCall is 90 miles North of the proposed PC and is famous for ice sculpturing and skiing and Sun Valley is 140 miles Southeast and is famous for skiing.  It’s been said Bruce Willis and Demi Moore own most the town of Hailey near Sun Valley resort and the town is a major tourist attraction.  Appendix A discloses all properties within the proposed PC.

 

    Montebello proposed PC would be a mixture of residential, commercial, manufacturing, industrial and business park areas.  Prior to incorporating the city of Montebello, Ada County ordinances for land use must be adhered to and the infrastructure for sewer and water is the key to lot density of 2 to 3 lots per acre for residential subdivisions.  Residential uses would come first with entry level housing predominating.  These homes on lots of approximately 7,645 square feet could produce 2 to 3 dwelling units per gross acre (69.58’ by 110’ per lot) for residential subdivisions.  Small lots and medium lots are sometimes mixed together within the same acre.

 

    The value of homes in this class would be from $110,000.00 to $125,000.00 and would make up to 65 to 70% of all the homes in the community.  Actual home pricing is dependant upon the Home Builder’s construction cost and what the market requires.

 

    The smallest lots proposed from 69.58’ by 110’ are larger then the average lots in cities throughout America and allow the homebuilder various construction designs and landscaping variations enhancing style and decor because of increased lot square footage.

 

    The average home is 1,400 to 1,800 square feet, constructed on lots 60’ (width) to 90’ (depth) to 70’ (width) by 90’ (depth); with 20’ feet front yard and 25’ to 30’ feet back yard.  Newly constructed smaller homes in Albany Oregon, average 1200 square feet and some homes are adjacent to homes on lots of 80’ by 100’ averaging 1600 to 1800 square feet.

   

    Actual Lot sizes are dependent upon topography, planners, engineering specifications and developers desired lot density in accordance with municipal and county ordinances relating to lot density per acre.  Most municipal comprehensive plan averages 3 to 4 lots per acre.  Deciding on 2 to 3 lot density would allow the developer various house designs and more space each lot.   Designing parks allowing residential subdivision homes access would make a considerable difference in community recreation interaction.  Duplexes and or Apartment Complexes adjacent to parks and or open space would allow more dwelling units per acre and require parking lots.

 

    Generally 20 to 25% of available ground, dependent upon lot density per acre is designated for sidewalks, drive ways and roads.  Approximately 12’ feet of the street is the developers expense, with Ada County Highway District sharing in construction cost of all roads developed and approved, from collection of fees collected by Ada County from new developments in Ada County.

 

    A second level of homes on lots of 10,010 square feet would produce 2 homes per gross acre (91’ width by 110’ depth lot size) for residential subdivisions with 26’ (width) by 208.71’ (depth) left over in each acre.  Every 3.5-acres would gain an extra lot based on 91’ as lot width and or allow an area designated for open space in association with several homes. 

 

    The value of homes in this class would be from be $130,000.00 and up and would make up 10 to 20% of the community. 

 

    Larger homes on half-acre lots of 21,780 square feet 104.35516’ x 208.71032’ abutting lakes would be from $155,000.00 and up and would make up 10 to 15% of the residential community.  Half- acre lots square footage includes driveway, sidewalk and street areas.  Appendix B illustrates an artistic conception of Cloverdale Residential Subdivision and Appendix C illustrates Phase One proposal.

 

    As of December 15, 2000, Salisbury Homes of Utah was looking for a developer in the Boise area that could provide a 200-lot residential subdivision.

 

    Real estate market projections of higher interest rates on mortgages throughout America by the close of December 2000, surprisingly shifted downward, offering homes at reasonable prices and low interest rates in Idaho June 20, 2002, was between 4.9 to 6.25 percent due to the Fed’s policies of lowering the amount of interest banks can borrow from the Fed’s.  Montebello as a PCD, offering homes at reasonable prices with the prime interest at record low, makes an over night difference in the way homebuyers view home mortgages and would ensure home sales in the proposed PCD. 

 

    The proposed PCD would be highly visible and attractive to the public with its parks with ponds scattered within residential subdivisions, central 40-acre park with ball fields, lakes, civic center, school & church property, business and manufacturing districts (dependant upon zoning).  Driveways/garages to the back of the house connected to the street, rather then the traditional approach of driveways/garages connected to the front of the house off the street, is seen as a viable contribution to both appearance and recreational and community shared involvements.

 

    Katherine Jones of the Idaho Statesman reported that new subdivisions are overtaking farmland as Nampa branches out, with much of the future growth predicted to be along the interstate. 

 

Location of PCD Civic Center

 

    The location for the proposed PCD civic center, business district, parking lots and recreational and entertainment facilities would be the northeast quarter of the intersection of Kuna Mora Road and Cloverdale Road.  Commercial and industrial areas would be along the existing Union Pacific Railroad line just to the south and zoning ordinances for Ada County land usage of areas within the proposed PCD would require the developer to request changes in accordance with PCD Master Plan.  An active railroad crosses the project just south of Kuna Road, running east and west through the north half of the project.  Ada County’s policy on PCD’S could pave the way for anticipated developments of the proposed PCD, provided PCD Master Plan addressed every issue satisfactory relating to the magnitude of the size of community proposed.  Appendix D illustrates Beautiful Montebello.

PCD Roads

    Existing county and state roads serve the area of the proposed PCD adequately.  Improvement of the present area public roads, where they are improved and paved will usually not be the cost to the developer.  These improvements will be funded by the Ada County Highway District from impact fees collected from all new construction in the area.  Bringing sub-standard roads up to standard and all new interior roads required for the proposed PCD will be at a cost to the developer, with Ada County Highway District impact fees paying a portion of the cost.  Appendix D illustrates existing roads within the proposed PCD and Appendix E contains information about Ada County Highway District.  

 

    Generally, developer pays 12’ of both sides the road or street.  Interior streets are usually 50’ to 60”in width and main roads/streets 65’ to 75’ in width.  All roads and streets widths include utility, drain, curb and side walk easements.  Constructed streets/roads must be free of encumbrance in order for Ada County Highway District to assume responsibility of maintenance.  Roads can be designed with mediums, two lanes or one way, dependant upon residential subdivisions or business districts requirements.  In 1972, Idaho Congress passed legislation that allowed county’s to originate Highway District that has authority over every street and road in the county, to include every road or street in every city within the county.  Ada County is one of the only county’s in Idaho that adopted a County Highway District and established policies relating to the collection of impact fees, new road construction and design.  The Ada County Highway District spends about $7,900 a year to maintain a mile of residential roadway, so the more growth moves out, the more it costs taxpayers.  The Meridian School District said spread-out residential areas are a main reason it buses about 85 percent of middle school students. 

 

    Other cities expanding residential subdivisions are finding that the costs are much greater then those cost developing farmland, creating a PCD.

 

Developers, and then property owner's, pay for the installation, so the publicly shared costs don't immediately show up. The public costs come with maintenance and replacement and that's usually more expensive than initial installation, since replacement often involves tearing up pavement and yanking out old utilities.  Replacement costs are figured into rates.

 

    PCD new construction of “New Package” renewable wastewater treatment facilities and drip drain fields in open spaces and or decorative clean ponds for recycling drain water are creative approaches, which decrease the expansion cost otherwise required by cities in order for growth to continue.  Montebello PCD unlimited water resources due to existing properties wells pumping from an underground aquifer, decreases cost for residential subdivisions and commercial businesses domestic (culinary) water required; providing a water association is established.  If your community is renewable your cost for community growth expansion is reduced.

 

    When you design wastewater disposal treatment technologies based on the population of a growing community, there’re is no need for expanding sewage pipes, simply develop construct, and build additional waste water disposal technologies as growth dedicates; represented in project development Phases.  First and Second Phase of the proposed PCD residential subdivision and commercial business establishments estimates 2,500 population, utilizing utility services, an estimated cost of $3,275,000.00 with generated utility services revenue that would pay for future expansion, fully discussed in Chapter VI.

 

    Montebello as a Planned Community District, under single ownership, would have increased in value 22.4 percent at the closing of 2000 and net income per share for all reporting equity REITs increased 9.5 percent on average in the first quarter of 2002, when compared with the same period last year.

 

REAL ESTATE INVESTMENTS TRUST (REIT)

 

    "The real estate market, including the value of shares in publicly traded entities in the real estate market in 1996 and 1997, were at low ebb.  To some, this was a reason to avoid the real estate market as real estate is cyclic, and tends to cycle up and down.  By observing well-known private and institutional investors, it is apparent that major investors are buying and holding real estate investments, in spite of the glamour of the tech stocks and the safety of the blue chips. "Blue chips" have a tendency to trade at high multiples of their respective earnings.  The average "growth" in the stock market at large is 11% per annum over a period of years.  Mutual funds own 1.7 percent of U. S. Stocks and real estate investments in the United States have increased in value steadily as illustrated by Real Estate Investment Trust’s closed-end funds that own real estate rather than securities.  Real estate holdings are hotter than almost any other types of stock.  They have risen 22.4 percent in 2000 – as measured by the Morgan Stanley Real Estate Investment Trust Index."

 

    "Real estate investments Trust (REIT) in the United States having increased in value steadily as illustrated by REIT’s closed-end funds that own real estate funds have risen in value 22.4 percent in 2000 – as measured by the Morgan Stanley Real Estate Investment Trust Index; suggests appraisals of properties of Montebello.  1996 and 1997 REIT’s stock saw a 28 percent decline during 1998 and 1999.  Arthur M. Louis of The Chronicle reports that Bill Schaff, manager of the Undiscovered Managers REIT Fund noted, “The real estate industry is doing quite well.  The REIT’s have averaged strong, 10 percent annual gains in their flow of funds from operations.”  Jay P. Leupp, Robertson an analyst Stephens, San Francisco, figures that FFO will increase by 11 to 13 percent per year during the next year or two. The average REIT by the close of 2000 was running 2 percent ahead of expectations.  Had the proposed PCD been in the REIT’s control, these properties would have seen a 22.4 percent return," as reported by the Morgan Stanley Real Estate Investment Trust Index. http://www.inrealty.com/restocks/reit.html

 

    "Earnings per share of real estate investment trusts (REITs) and other publicly traded real estate companies increased in the first quarter of 2002 which compared to the same period last year, according to data assembled by the National Association of Real Estate Investment Trusts (NAREIT).  Earnings are measured by net income per share as reported under generally accepted accounting principles (GAAP). http://www.cpaclass.com/gaap/gaap-us-01a.htm  Net income per share for all reporting equity REITs increased 9.5 percent on average in the first quarter when compared with the same period last year.  Exhibit 1 is offered at NARET web site.  Complete first quarter results are based on data for 124 publicly traded real estate companies with a combined equity market capitalization of $164.5 billion, which represents 87 percent of total industry capitalization.  Average earnings per share growth rates are weighted by equity market capitalization.  Excluding the lodging/resorts sector, which was still affected by a slowdown in travel and tourism linked to economic uncertainty and September 11, net income per share for all equity REITs and other publicly traded real estate companies combined increased 21.1 percent on average in the first quarter, " as reported by Jay Hyde or Rob Valero, NAREIT.

 

    "Funds from operations (FFO) per share for all reporting equity REITs was up 1.0 percent on average in the first quarter 2002 when compared to the year earlier period.  Exhibit 2 is offered at NARET web site.  FFO per share for all equity REITs and other non-REIT publicly traded real estate companies combined declined .3 percent on average in the first quarter, including a 34 percent in average FFO per share for the lodging/resorts sector.  When lodging/resort companies are removed, FFO per share grew 4.6 percent.  Complete first quarter FFO results are based on data for 150 publicly traded companies with a combined first quarter equity market capitalization of $181.6 billion.  Average FFO per share growth rates are weighted by equity market capitalization.  Approximately 80 percent of the companies tracked by industry analysts met or exceeded their consensus FFO per share estimates for the first quarter.  Forty eight percent of the companies exceeded their level of FFO per share, while another 31 percent of the companies met their consensus estimates," as reported by Jay Hyde or Rob Valero, NAREIT.

http://www.nareit.com/mediaresources/1Q2002earnings.pdf

 

    "Adding Real Estate Investment Trusts (REITs) to a wide selection of diversified portfolios from 1972-2001 boosted compound annual total returns by as much as 8 tenths of a percentage point when compared with non-REIT portfolios, according to an updated analysis of historical data by Ibbotson Associates.  Chart 1 is offered at NARET web site.  For the time period of 1992-2001 - often referred to as the modern REIT era - putting REITs into the investment mix increased compound annual returns by up to 1.3 percentage points.  Chart 2 is offered at NARET web site," as reported by Jay Hyde or Rob Valero, NAREIT.

 

    "Investors are increasingly aware that REITs are a great diversifier," remarked NAREIT President and CEO Steven A. Wechsler.  Last year, Ibbotson Associates http://www.ibbotson.com highlighted the low correlation of REIT stock returns with those of other equities and bonds.  This updated analysis, which factors in performance data through the end of 2001, makes an even more compelling case for the use of REITs to boost returns and reduce risks in a variety of investment portfolios, especially 401(k)s.  In the last three decades, REITs registered a compound annual total return exceeding that of both government bonds and S&P 500.  REITs returned 12.5 percent from 1972 to 2001, compared with 8.9 percent for bonds, 12.2 percent for the S&P 500 and 14.9 percent for Ibbotson's Small Stock Index.  Chart 4 is offered at NARET web site.  "With the growth of real estate investment comnpanies, the REIT industry has seen an increase in liquidity and more distinctive investment performance characteristics," Ibbotson reported.  These characteristics have allowed REITs to become a viable investment option for many types of portfolios," as reported by Jay Hyde or Rob Valero, NAREIT.

http://www.nareit.com/mediaresources/ibbotson2002.pdf

 

    "The National Association of Real Estate Investment Trusts (NAREIT) is the national trade association for REITs and publicly traded real estate companies.  Members are real estate investment trusts (REITs) and other businesses that own, operate and finance income-producing real estate, as well as those firms and individuals who advise, study and service those businesses."  http://www.nareit.com

 

Ibbotson Associates

http://www.ibbotson.com

 

Growth in Company Size

Consistent Income Returns

REIT Dividend Growth versus CPI

REITs Measure Up Over Time Declining Equity REIT Correlation

http://www.ibbotson.com/products/catalog/pm148.asp

 

SRI proposed Planned Community District does not need to rely on “some unique entrepreneurial risk-taker.”  SRI Planned Community is solid and in comparison to the Bunker Hill Superfund site, SRI PC offers great potential, far exceeding any future potential the Bunker Hill Superfund mining area of Silver Valley will experience for 50 to 100 years.  The Bunker Hill Superfund should be developed as an Auto Racing Track.

 

BUNKER HILL SUPERFUND SITE IN SILVER CITY, IDAHO

 

THE LEGACY OF THE BUNKER HILL MINE - "By Arthur Miller 1998 - "Deep within the mountains of the panhandle of Idaho lies a valley that white people named Silver. This valley is the heart of what became known as the Coeur d'Alene Mining District. The Bunker Hill Mining complex, situated from the west end of the town of Kellogg and through the town of Smelterville, includes a silver, lead and zinc mine, a smelter, a zinc plant and a rail yard." http://www.laborers.org/Bunker.html

 

The Legacy of the Bunker Hill Mine, 3/3, A - I n f o s

http://www.ainfos.ca/98/jul/ainfos00187.html

 

Bunker Hill: light at the end of the tunnel, August 20, 1998 - "Fueled by over $20 million in federal cleanup funds this year, the U.S. Environmental Protection Agency, the U.S. Army Corps of Engineers, the Morrison Knudsen Co. of Boise, and a host of other contractors and consultants are winding-up the biggest construction season ever at the Bunker Hill Superfund site in northern Idaho." By MARK MACINTYRE U.S. EPA.  http://www.djc.com/special/enviro98/10043970.htm

 

Silver Valley People's Action Coalition/CRC, Co. http://www.imbris.net/~paccrcco

 

The Bunker Hill Hillside - "Home of a Superfund site and one of the most polluted places in the United States, Bunker Hill in Silver Valley, Idaho, was the subject of two Honors courses taught by Professors Michael Mix, Lani Roberts and Patricia Muir.  Seeking solutions for Superfund site - Two special Honors classes focus on real world issues, Rachel Hochman, UHC Advisor, Chronicle Spring 2001." http://www.orst.edu/groups/chronicle/issues/Spring2001/articles/silvervalley.html

 

January 1, 2000 The Associated Press addressed Superfund land development.  Idaho Statesman published the following article relating to the Bunker Hill Superfund site in Silver Valley:

 

“Private developers should have the chance to use land being cleaned up as part of the Bunker Hill Superfund site in Silver Valley, the state Land Board said.  The panel of Idaho leaders voted Tuesday in favor of land leases and other measures to attract developers to the Superfund site polluted by heavy metals from a century of mining.  Some officials hope to lease the land for building anything from a golf course to homes.” 

 

The plan went to the legislature and the outcome of the disposition of this area is of little concern to those whom develop land in areas unrestricted from pollutants and heavy metal contaminations.  To suggest that this area would be a perfect Planned Community District, establishing residential subdivisions would be to offer an advance notice of health related concerns for a community.

 

“Now that the environmental fix is being completed, it is time to begin the economic-development fix,” Charles Moss, state Bunker Hill Superfund project director, told the board.

 

Idaho is expected to receive 1,900-acres held by the U.S. Environmental Protection Agency following the cleanup of the mining and smelting complex.  About 1,600-acres can be developed.  The Idaho state law allows former Superfund land that passes into state ownership to be sold, with the proceeds going to the Bunker Hill trust for cleanup and monitoring.  Moss presented legislation to the Land Board, expanding the law to allow leases as well as sales.

 

The project would be immune from Idaho’s surplus property laws, which would require the land to be sold to the highest bidder.  “The bottom line is, there is a need for some unique incentives that can be presented to some unique entrepreneurial risk-taker,” Moss said.  “What we’re short of is prospects.”

 

The central impoundment area of the Superfund site is included in the 1,900-acre total, but cannot be developed.  It will be capped with a plastic membrane that cannot safely be pierced, so building foundations and other underground work are out of the question.  The center will have soil and grass on top it, and could end up as a golf course, playing field or greenbelt, Moss said.  The smelter complex cannot be developed.

 

Rob Hanson, state Division of Environmental Quality Bunker Hill coordinator, said much of the land could be developed.  “They’re pretty simple requirements.  If you dig up contaminated stuff, you have to make sure it doesn’t run off or get tracked out,” he said.

 

Moss said the state seeks proposals that produce jobs and expand the local property base; improve public services or make land trades to promote economic development; or add new recreational opportunities.

 

Kellogg might move ball fields onto some of the land, allowing property now used for sports to be developed.

 

The state will accept ownership of the land from EPA only on the condition that it is clean and the federal agency will fix any additional problems.”

 

Lack of soil hindering pollution cleanup, By The Associated Press, September 10, 1999  - KELLOGG, Idaho - A shortage of dirt is hampering mining-pollution cleanup at the Silver Valley's Bunker Hill Superfund site:

 

"The lack of available topsoil in northern Idaho also is complicating federal efforts to replace contaminated soil in about 200 residential yards in the Silver Valley town of Pinehurst.

 

Next year there's going to be a big push (for topsoil), and I'm not sure where it's going to come from," said Jim Brady of the Idaho Department of Lands, September 10, 1999 - "Kootenai County commissioners in July rejected contractor Interstate Concrete and Asphalt's bid to use topsoil from company-owned property on the Rathdrum Prairie to cover contamination at the Superfund site. The site needs as much as 500,000 cubic yards of clean topsoil fertile enough to grow grass.

 

State officials back the county's decision because the vegetation growing in the soil filters contamination over the Spokane Valley-Rathdrum Prairie Aquifer, the sole source of drinking water for 400,000 people in the Spokane-Coeur d'Alene metropolitan area, Brady said.

 

Two expensive options for supplying dirt for the cleanup work involve trucking in topsoil from the Palouse farm region straddling the Washington-Idaho line south of Spokane or shipping soil on trains from the Seattle area, Brady said.

 

Another option is to make topsoil. One dirt recipe involves city yard debris mixed with clay and sand; another calls for sewage sludge and sawdust.

 

"(The topsoil) can be made - it's a question of cost," said Nick Zilka, the state's cleanup manager at Bunker Hill. "It's cheaper to haul it over the pass than make it on site." http://www.seattletimes.com/news/local/html98/dirt_19990910.html

 

EPA proposes $359 million cleanup in Idaho's Silver Valley, October 25, 2001, Canoe, SPOKANE, Wash. - "(AP) - "The Environmental Protection Agency proposed a $359 million cleanup Wednesday of toxic mining wastes that have accumulated for more than a century in Idaho's Silver Valley." http://jam.canoe.ca/AllAboutCanoesNewsOct01/25_epa-ap.html

 

Silver Valley playing through - Golf course marks post-Superfund era, December 9, 2001 - "KELLOGG - Life after Superfund begins with a golf course, Benjamin Shors, Staff writer, Spokesreview.com. http://www.spokesmanreview.com/news-story.asp?date=120901&ID=s1068182

 

Federal, state and regional agencies have made Silver Valley and our Superfund district very high priorities for business development. http://www.silvervalley.com/business.html

 

Bunker Hill Superfund Site, Kellogg, Idaho http://www.nws.usace.army.mil/geotech/bunker/bunker.htm

 

Historical Overview

 

"The Bunker Hill Superfund Site is a former mining and smelting complex located in Kellogg, Idaho, along I-90 in the Silver Valley in northern Idaho. The site is 21 square miles in size and affects approximately 5,000 people. It is one of the largest and most complex abandoned hazardous waste sites in the nation.

 

The site was contaminated by years of mining and smelting processes in the area. Mining began in the area in the late 1800s and smelting operations followed in the early 1900s. The mines and smelters produced lead, zinc, cadmium, silver, gold, and alloys of these heavy metals. Lead, arsenic, cadmium, and zinc are the primary contaminants at the Bunker Hill site. Among the sources of the contamination are the mine tailings, past air emissions, smelter complex materials and residuals, acid mine drainage and inflow of contaminants from other upstream mining and milling operations. In 1973, a fire at the smelter damaged the air emissions controls and dramatically increased the lead emissions from the smelter until repairs were completed. A survey in 1974 found that 98 percent of 1- to 9-year-old children living within 1 mile of the smelter had blood lead levels in excess of 40 g/d. The smelter and other bunker Hill company activities ceased operation in late 1981. Some limited mining operations have been performed at Bunker Hill by various entities since that time.

 

The site was placed on the National Priorities List (Superfund) on September 8, 1983."

 

Effects of Contaminants

 

The metals that contaminated the site have both health and environmental effects. Lead, arsenic, cadmium, and zinc are the contaminants of primary concern for human health at Bunker Hill.

 

Small children and pregnant women, particularly, should be warned about the neurologic effects of lead. Childhood lead toxicity may have permanent effects including decreased intelligence quotient scores, impaired hearing, and reduced growth.

 

Arsenic exposure can increase cancer risk, cause skin problems, and blood and nerve disorders.

 

Cadmium at high levels can severely damage the lungs while lower levels can lead to kidney disease.

 

Zinc exposure can cause stomach and digestive problems. It may also interfere with the immune system.

 

The soils, water, and air in the area have been contaminated by the metals. In addition, much of the soil on hillsides in the Bunker Hill Industrial Complex has eroded since the clearing of trees nearly 100 years ago. The trees have been unable to re-establish on their own in many areas due to the metals and the lack of soil.

 

Cleanup

 

Because of the size and nature of the site, the site was divided into two operable units, Populated Areas and Non-Populated Areas. Work in the Populated Areas is being performed by potentially responsible parties (PRPs), primarily upstream mining companies, under the terms of a Consent Decree signed in 1994. Work involves the removal of contaminated soils in residential areas and public use areas throughout the 21-square-mile area to a nominal depth and replacement with clean fill and either sod or gravel. This work is still ongoing.

 

Work in the Non-Populated Areas is being performed primarily by contractors under contract to the U.S. Army Corps of Engineers (Corps) who is responsible for construction management of the remedial action activities in the area. The work involves:

 

the demolition of close to 200 structures in the Bunker Hill Industrial Complex;

 

the removal of contaminated soils and other materials from the complex;

 

the construction and closure of a disposal cell in the complex developed and used for the disposal of debris and contaminated materials from the complex;

 

the remediation of numerous gulches and stream channels in the complex;

 

erosion control and re-vegetation of the hillsides in and around the complex;

 

the removal of approximately 1.5 million cubic yards of contaminated soils, tailings, and other materials from the Smelterville Flats area;

 

and the closure of a 240-acre tailings impoundment area known as the Central Impoundment Area (CIA).

 

Current Status

 

The demolition of close to 200 structures in the lead smelter complex, zinc plant, and the phosphoric acid fertilizer plant has been completed. As part of this work, two large concrete stacks, 715 feet and 610 feet tall, respectively, along with two smaller stacks, were demolished using explosives. The 715-foot-tall stack is the tallest stack ever to be demolished using explosives in North America. The stacks were demolished as part of a civic celebration during Memorial Day weekend, 1996. The event attracted over 8,000 people, was televised live in the local regional area, and received extensive media coverage throughout the Nation. The majority of the demolition work in the Industrial Complex was performed by Morrison-Knudsen (M-K). OHM performed some of the initial demolition work under a rapid response contract with the Corps. The demolition work has been completed at a cost savings of approximately $4 million.

 

Work is currently underway to remove the contaminated soils and materials from the Industrial Complex area along with remediating the numerous gulches and stream channels in the complex. This work is also being performed by M-K and is scheduled to be completed in the summer of 1997.

 

Follow-on work including the closure of the Industrial Complex disposal cell; the removal of approximately 1.5 million cubic yards of contaminated soils, tailings, and other materials from the Smelterville Flats area; and the closure of the 240-acre CIA is scheduled to begin the summer of 1997 and be completed by 2001." Seattle District, U.S. Army Corps of Engineers.   http://www.nws.usace.army.mil/geotech/bunker/bunker.htm

 

Brownfields Assessment Pilot Fact Sheet, EPA - "EPA's Brownfields Economic Redevelopment Initiative is designed to empower States, communities, and other stakeholders in economic redevelopment to work together in a timely manner to prevent, assess, safely clean up, and sustainably reuse brownfields. A brownfield is a site, or portion thereof, that has actual or perceived contamination and an active potential for redevelopment or reuse. Between 1995 and 1996, EPA funded 76 National and Regional Brownfields Assessment Pilots, at up to $200,000 each, to support creative two-year explorations and demonstrations of brownfields solutions. EPA is funding more than 27 Pilots in 1997. The Pilots are intended to provide EPA, States, Tribes, municipalities, and communities with useful information and strategies as they continue to seek new methods to promote a unified approach to site assessment, environmental cleanup, and redevelopment."  http://www.epa.gov/swerosps/bf/html-doc/panhand.htm

 

"The Bunker Hill Superfund Site is one of the largest and most complex abandoned hazardous waste sites in the nation. The site is a former smelting facility located in northern Idaho's Silver Valley. It encompasses the towns of Smelterville, Pinehurst, Wardner, and Kellogg, and the communities of Page, Ross Ranch, Elizabeth Park, and Montgomery Gulch. The designated site is 21 square miles in size and affects approximately 5,000 people." The Lands Council. http://www.landscouncil.org/gtlo/sup.htm

 

Bunker Hill - Cd'A River Basin - Region 10: The Pacific Northwest -Alaska, Idaho, Oregon, Washington and 270 Native Tribes, EPA. http://yosemite.epa.gov/r10/cleanup.nsf/sites/cda

 

Bunker Hill Mining and Metallurgical - Region 10: The Pacific Northwest -Alaska, Idaho, Oregon, Washington and 270 Native Tribes, EPA. http://yosemite.epa.gov/r10/cleanup.nsf/webpage/Bunker+Hill+Mining+and+Metallurgical

 

Bush Slashing Aid for E.P.A. Cleanup at 33 Sites (New York Times, July 1, 2002). http://www.roizen.com/ron/c.htm

 

Daily Data Tracking History - HOUSE BILL NO. 480 - " H0480, By RESOURCES AND CONSERVATION BUNKER HILL - Amends existing law to provide that the Department of Health and Welfare may manage, lease or dispose of certain property in the Bunker Hill area for the purpose of facilitating appropriate operation and maintenance activities, encouraging economic development of the Silver Valley or assisting local governmental entities; and to provide that the management, lease, or disposal of property shall not be subject to the state surplus property law." http://www3.state.id.us/oasis/2000/H0480.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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                ENERGY QUEST, former National Energy Efficient Development Inc.

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