Study notes area's economic sustainability

SANDPOINT — Is Bonner County on the cusp of an economic sea change? It may be, if it can overcome some challenges.

The area has once again been recognized as a unique place, this time for its economic sustainability, according to a study by Headwaters Economics, an independent, nonprofit research group out of Bozeman, Mont., that focuses on rural issues.

“Bonner County has an unusually strong, resilient, and steady economy for a community of its size and geographic remoteness,” the study’s report concluded.

The study compared Bonner County with four other Pacific Northwest counties in Montana, Idaho and Oregon with similar attributes such as population, geography, natural resources and economics.

One of the area's biggest strengths is the size of manufacturing, which the report’s author, economist Megan Lawson, labeled an “anomaly” for such a remote, rural area.

While timber-related jobs have dwindled, advanced industry jobs — tech-related research and design in industries like aerospace and computer software, for example — have increased. Those jobs have bolstered mainstay industries such as tourism that are based on the area’s surrounding natural recreational opportunities.

Together they are a powerful combination.

A 2012 Headwaters study considered the impact of public lands on rural communities. It found that areas in the western U.S. surrounded by protected natural amenities such as natural forest lands and parks realized a 345-percent increase in jobs during the past four decades compared to only a 30-percent increase in those areas without protected lands.

That’s because the artists and entrepreneurs prefer to work near areas which offer natural recreational choices, according to the 2012 study. Bonner County, with its mountains and lakes, ski area, hiking and biking trails, fishing and hunting, offers those opportunities.

“Those are huge attractants and incentives for the creative class and people who want to live in very high-quality communities,” former Sandpoint planning and economic development director Jeremy Grimm said.

Other area positives included the commitment of its residents to the community who remain in the area, the county’s high quality of life, and its superior schools.

But the Headwaters study wasn’t all glowing either. Among the county’s weaknesses were its distance from larger markets, the cost of real estate compared to wages; its slow Internet connections, and what the report termed a “low educational attainment of workforce.”

See ECONOMY, Page 3

ECONOMY

Continued from Page 1

Area leaders are working to address some of the low-hanging fruit.

Aaron Qualls, Sandpoint’s new planning and economic development director, noted city and county officials are working together to tap into existing fiber optic “fat” cable that runs along railroad rights of way through the county. They anticipate much faster Internet connectivity.

“Right now we’re working aggressively to create a fiber optic network throughout the downtown and participating with the county on extending it into the industrial areas,” Qualls said.

The connection could potentially provide faster asynchronous speeds — faster upload and download — than that of many large metropolitan areas, he said.

The faster connections will open up opportunity for more industrial and high tech development near the airport industrial area once the fiber network is complete. Grants may help connect the network to the hospital, schools and the library.

“It would be a huge asset to further economic development,” Qualls said.

Still, transportation, housing costs and education remain a challenge in the foreseeable future.

The relative remote location of Sandpoint and Bonner County is double-edged sword, Qualls said. On one hand, manufacturing in North Idaho results in increased shipping costs. The distance to a commercial airport is a challenge for both businesses and residents as well, especially for customers who want to visit a manufacturing facility, or to evaluate a product.

“It’s challenging to get here compared to other urban areas,” he said.

On the other hand, being remote helps maintain the area’s small town, rural character.

Meanwhile, affordable housing will be “an ongoing challenge,” according to Qualls.

Low income housing, such as the Whitewater development on Boyer Avenue, was “a boon for affordable housing,” Qualls said.

In its comprehensive plan, the city has allowed for infill — smaller lot sizes, construction of accessory dwelling units, and denser lot coverage — as a method to allow for more affordable housing. Sandpoint’s goal is to allow higher densities inside city limits rather than allow for outward sprawl, according to Qualls.

Workforce education is another shortcoming. The report noted that “more workers with at least a bachelor’s degree are needed as sectors requiring highly educated workers, such as those in advanced industries, continue to expand in the county.”

Noting that Sandpoint High School ranked 19th out of 163 state schools in 10th grade math and reading scores in the 2012-2013 school year, and programs like the Pathways to Technology in Early College High School, or PTECH, it’s just a matter of time before the workforce catches up.

“Our schools in Sandpoint are some of the best in the state,” Qualls said. “We’re really lucky that way.”

The area is attractive to many. The report noted that the impact due to the loss of Coldwater Creek was tempered by what it termed the “commitment to the community and the area’s quality of life,” wherein many employees were absorbed by local firms or opted for self-employment in order to stay in the area.

 “We found that this type of resilience and commitment to the area is not unusual for Bonner County,” the report said.