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Port approves sale of land to Farwest

By Aaron Corvin, Columbian Port & Economy Reporter
Published: August 10, 2010, 12:00am

The Port of Vancouver’s Board of Commissioners on Tuesday unanimously approved a deal that hands 20 acres to Farwest Steel Corp. for $5 million. The company plans to build a new plant on the site, and could eventually employ 228 people there.

Eugene, Ore.-based Farwest plans to spend up to roughly $30 million to build more than 300,000 square feet of steel fabrication, warehousing and distribution facilities, and offices.

The complex, where Farwest plans to relocate 100 jobs at first and to eventually add another 128 workers, could be built and operational in late 2011 or early 2012.

Commissioners said selling the land — which goes against standard practice for the port — wasn’t an easy decision. But they said it was worth it to help improve the economy.

Commissioner Nancy Baker said one part of the purchase and sale agreement in particular troubled her — a requirement that Farwest maintain a minimum of 100 employees at its new plant, including independent contractors and temporary laborers. That’s below the company’s long-term employment estimate.

Baker said “it worries me” that anything less than full-time jobs will be allowed as part of the required minimum employment level.

Nevertheless, Baker joined the other two commissioners in voting to approve the land sale.

While he would like to have a guarantee of at least 228 jobs at Farwest’s planned new site, Commissioner Brian Wolfe said that the port has to be willing “to take the risk that that will happen over time.”

Farwest president and CEO Patrick Eagen, who addressed the board during Tuesday’s hearing, said he understood these concerns but that his company prefers to “hire and bring people in full-time.” And while the minimum employment level is 100 workers, Eagen said, Farwest’s goal is to “have over 200 people employed.” He added: “We’re building the facility to support the people you have in mind. We’re looking at the high-end of jobs rather than the minimum numbers in the contract.”

Eagen said the average salary for jobs at the new facility will be $40,193, plus benefits.

Thirty of the initial 100 jobs the company plans to relocate are expected to come from Farwest’s facility at Vancouver’s Columbia Business Center. The rest are expected to come from the company’s facilities in Oregon.

Under the purchase and sale agreement, the port will have the right to buy back the 20 acres from Farwest if:

o Construction of the company’s planned complex doesn’t begin within 12 months.

o The minimum employment level isn’t maintained by the company.

o The company puts the property up for sale.

o The company doesn’t keep the property in industrial use.

o Operations on the property stop.

Farwest has lines of business in steel distribution, processing and fabrication. The company, founded in 1956, has locations in Washington, Oregon, California, Idaho and Utah. It has not gone unscathed by the Great Recession. The company, which had employed roughly 800 workers before the recession hit, was forced to cut its work force by a couple hundred workers to an estimated 550 to 575 workers.

Eagen, Farwest’s CEO, said the company, by striking the deal with the port, is positioning itself to consolidate some of its operations and then to “look for growth opportunities as we see fit.” Eagen said that by the time Farwest’s new facility is built, in late 2011 or early 2012, the economy will be stronger and customers will be ready to do business. “We’re going to see some steady growth,” Eagen said.

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Columbian Port & Economy Reporter