Feeling strong now
In 2006, our region enjoyed one of the strongest economies in recent memory.
Even as the rest of the nation’s housing market slowed, home prices here kept rising. Jobs were added at an historic clip as big new multi-use projects were announced. Outsiders began gobbling up investment properties and retailers unveiled expansion plans. Here are some highlights of the year in business:
“Jobs boom: From October 2005 through October this year, 10,200 new jobs were added in Spokane, a growth rate of 4.5 percent. Just three years ago, the economy added only 2,000 jobs from October to October. The news was even better in Kootenai County, which added jobs at a 5 percent rate even after two previous years of spectacular job growth. The best news, however: in both counties, the highest-growth categories were for professional jobs — teachers, lawyers, accountants, architects and health-care workers.
“Downtown Spokane resurgent: In a transformation begun a decade ago, the downtown core made significant progress in adding what many thought was the missing link — housing. Developers announced plans to convert into residential condos buildings ranging from part of the old Ridpath Hotel to the former Comet Press, with more than 250 new units on the drawing board by October. Meanwhile, Walt Worthy’s Davenport Tower project soared toward completion as crews stacked pre-cast concrete pieces to create the 21-story building — the first high-rise constructed in the downtown core in years. A slew of new restaurants joined the area’s dining scene. The expanded Spokane Convention Center opened, in plenty of time for next year’s State Farm U.S. Figure Skating Championship.
“Cabela’s is coming: The Sidney, Neb.-based outdoor-sports retailer chose Post Falls for a 125,000-square-foot store, after considering both that community and Liberty Lake. Next came word that Cabela’s will anchor a 200-plus-acre development, with shopping space nearly rivaling the Spokane Valley Mall’s, called the Pointe at Post Falls.
“Metropolitan Mortgage payout: After 31 months and 12,500 court filings, Metropolitan Mortgage & Securities Co. mailed out checks to thousands of former investors in the bankrupt financial conglomerate and its sister firm, Summit Securities Inc. Met investors received about 9 cents on the dollar, while Summit investors got about 6 cents on the dollar. The Metropolitan Mortgage bankruptcy was Spokane’s worst corporate financial failure. Another round of checks is expected to be mailed in 2007.
“High gas prices: In October, Spokane’s gas prices were the highest in the lower 48 states, according to a survey by a consumer Web site, GasBuddy.com. Only Honolulu’s gas prices were higher — $2.87 a gallon vs. $2.65 a gallon here. Coeur d’Alene’s gas prices also were high at the time — $2.47 compared with the national average of $2.26 a gallon. Reasons for the region’s persistent high prices varied; the Washington Attorney General’s office said production and pipeline capacity play a role, while some consumers wondered openly about price-gouging by big oil companies.
“The end of a long-time banking name: Walla Walla-based Banner Bank announced earlier this month that it will acquire F&M Bank, a Spokane institution that celebrated its 100th year in business in 2006. The cash and stock deal, valued at $98.8 million, is expected to close by the second quarter of 2007. All of F&M’s 14 branches will adopt the Banner Bank name. F&M, long known as Farmers and Merchants Bank, was founded by a group of farmers and business owners in Rockford, Wash., to meet the town’s agricultural financing needs. It grew fast, absorbed the Rockford State Bank after a run on that bank, and survived the Great Depression.
“Kaiser emerges from bankruptcy: Four and a half years after seeking Bankruptcy Court protection, Kaiser Aluminum emerged a new company, with new owners, new stock, a new balance sheet, and, it appears, a bright future. Kaiser’s Trentwood rolling mill is poised to cash in on strong demand for specialty aluminum that’s converted into airplane parts. Kaiser is investing about $105 million in new machinery for the Trentwood plant to make aluminum plate. A month after emerging from bankruptcy, the company announced an eight-year contract to supply aluminum for new U.S. warplanes.
“Housing market cools — slightly: The pace of home sales slowed this year locally, although prices kept rising. In November, the average sales price in Kootenai County was $239,126, a 14 percent gain over November 2005. In Spokane County, the average was $197,319, up 15 percent from the same 11-month period in 2005. Despite a nationwide housing slowdown, real estate sources in Spokane said 2006 likely will end up the second-best year in the city’s history in terms of real estate. Kootenai County officials ended the year with sessions outlining what they fear is a coming affordability crisis for lower-paid workers.
“The Chesrown factor: Developer Marshall Chesrown continued to make news with big projects across the region. In Spokane, the city hearing examiner approved Chesrown’s Kendall Yards, an 80-acre project on the north bank of the Spokane River that’s expected to include 2,600 residences and 1 million square feet of commercial space when complete. Chesrown’s Black Rock Development proposed a 1,600-home development in Liberty Lake, near the company’s 600-home Legacy Ridge project. The developer plans to build 1,000 residential units in Riverstone, near downtown Coeur d’Alene, and has won approval to expand his flagship Club at Black Rock, near Coeur d’Alene Lake, by 1,100 acres. Chesrown also bought two mill sites along the Spokane River in Kootenai County and announced plans to redevelop them.
“Wal-Mart expansion: The world’s largest retailer announced plans for a major expansion of its presence in the Inland Northwest. Wal-Mart said it would build two of its warehouse-style Sam’s Clubs stores, one in north Spokane and the other next to the Costco store in Spokane Valley. The company also seeks to build a Wal-Mart Supercenter store on Spokane’s South Hill; faced with opposition, Wal-Mart was rumored to be eyeing an alternate site nearby, outside Spokane city limits. Wal-Mart built a store in Idaho’s Silver Valley and made permitting progress on another in the West Plains. However, the Arkansas company continued to battle opposition to planned stores in Hayden and Pullman.