From Communitywise Bellingham

Increased noise and nuisance from coal trains could hurt livability, waterfront redevelopment, tourism

A new report released Tuesday, March 6 concludes that the development and operation of the proposed Gateway Pacific Terminal (GPT) at Cherry Point could lead to a net loss of jobs in Whatcom County if it resulted in a loss of 17 percent of job growth projected from other economic growth strategies from 2012 to 2021. Those strategies include tourism and investment in waterfront redevelopment, which could reach $1 billion over the next 25-30 years and produce 5,600 direct jobs according to the Port of Bellingham.

“Since the pulp mill closed ten years ago downtown Bellingham has been reenergized as a desirable place to live, work and invest,” said downtown developer Bob Hall of Daylight Properties. “I’m concerned that the constant coal train traffic – taking 10 to 15 minutes each and averaging nearly one per hour – will take us back to a time when downtown was considered an industrial site, cut off from the waterfront by a smoky, noisy neighbor.”

According to the study “(a)pproximately 60 percent of all employment in the county is in Bellingham; Bellingham businesses generate more than three-quarters of all retail sales and more than half of all revenue related to accommodation and food services; in 2010, more than half of all residential home sales occurred in Bellingham. . .and 36 percent of total assessed county property(.)”

“The economic risks we looked at stem from both the projected increase in rail traffic and the stigma associated with the transport of large amounts of coal through Whatcom County,” said report author David Eichenthal of Public Financial Management Inc. (PFM), the nation’s largest independent financial advisor to local and state governments.

PFM prepared the study for Communitywise Bellingham, a grassroots organization dedicated to ensuring the full range of local impacts are examined as part of the decision making process for GPT.

“Decisions as pivotal as the coal terminal make a thoughtful economic study – independent of the proponents – essential,” said Tim Douglas, former Mayor of Bellingham (1984-95, 2006-07). “Good information will ensure that Whatcom County and the entire state exercise the wisest choices to build a healthy future.  I’m grateful for this study and the discussion that must follow it.”

The greatest risk to job growth according to the study is the noise and nusiance that would come with the substantial increase in coal trains traveling through Whatcom County and Bellingham’s waterfront. The study also says the GPT terminal could make the city and county less attractive to professionals and entrepreneurs concerned about the quality of life impacts of what would be one of the world’s largest coal transportation and export operations.
“This study shows the coal port could be a net negative for job growth in Whatcom County. It is an important first step in helping neighbors and the business community better understand the economic trade-offs,” said Shannon Wright with Communitywise Bellingham. “But there are still many unanswered questions about how coal export could impact our economy, public health and safety, and quality of life.”
The study considered local governments’ share of projected state and local tax revenues from construction and development of GPT, which would be about $3.1 million annually, or just 1.5 percent of Whatcom County’s 2010 annual budget, following construction of GPT.
But the study didn’t look at who would pay for expensive rail crossing upgrades in the county, which may fall on local taxpayers. The study also did not consider potential impacts to Tribal fisheries near Cherry Point, which is a vital nursery ground for herring, which feed endangered Puget Sound salmon and Orca in turn. Nor did the study consider economic impacts to the dozens of other communities along the rail corridor that would face economic risks similar to Bellingham and Whatcom County, yet would receive none of the potential economic benefits.
The report concluded that there is not sufficient evidence to support the claim that if the GPT isn’t built the coal would be shipped to Canada, meaning Whatcom County would still have all the added rail traffic but none of the potential economic benefits. The report considered various factors in reaching that conclusion, including the lack of major expansion capacity at the Westshore terminal near Vancouver, BC.
The report and executive summary are available at: https://www.communitywisebellingham.org/studies/

 

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