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INDUSTRIAL PARK SALE/LEASE/BUILD TO SUITBLAINE INDUSTRIAL PARKBLAINE WASHINGTON

Klein Group, Royal LePage City Centre | Suite 204 345 Robson St. | Vancouver BC Canada | V6B 6B3

O 604 684 8844 | F 604 684 8844 | TF 1 877 877 0417 | www.kleingroup.com

Eugen KleinCommercial Real Estate Investment

B.Comm(UREC), CRES, ARM®, RI, FRI, CCIM, CLO, CIPS, ICD.D

O 604 684 8844 ext 701 F 604 684 8844 C 604 818 5888 TF 1 877 877 0417 E [email protected]

Raman BayanzadehCommercial Real Estate Investment & Leasing

B.Sc. Industrial Eng., DIPBM


Dean ThomasCommercial Real Estate & Land Investment

DEC


BUILD NOW.

BLAINE INDUSTRIAL PARKBLAINE WASHINGTONSALE / LEASE / BUILD TO SUIT



EXECUTIVE SUMMARYWhy Blaine Industrial Park?

Location• Located on the intersection of Highway I5 and S543 with over 2,100 ft of highway exposure • Largest parcel of Manufacturing/Industrial property (45 Acres) within the City of Blaine • Less than 0.5 mile to Canada / US border; Peace Arch and Pacific Highway Crossing are two of the busiest crossings on Canada/US border.• High Quality of Life - Blaine is a relatively undiscovered waterfront community with affordable housing, access to quality workers and strategically nestled between the fast growing cities of Vancouver and Seattle.

Development Cost Savings• Development Cost Charges (DCC’s) within the City of Blaine for this development ~ $0 (upon last verification with City of Blaine, only development contributions may need to be made for fire safety). See DCC Comparisons inside package.

• There are several tax, labour and industry incentives. See the attached Whatcom County Economic Report prepared by the Port of Bellingham. Trade Advantages• Free Trade Zone potential by successful application - “Made in USA” branding in addition to tax advanatages • Adjacent to new Gateway Commercial Development Corridor immediately north of the property

Ready to Build• Serviced at Lot Line: Water, Electricity, Sewer and Fiber Optics • Over 469,000 sf total buildable • Supports buildouts of over 300,000 contigious sf. • Conceptual Land Use Plans - Completed • Conceptual Renderings - Completed • Wetland Mitigation Plan - Completed • Bald Eagle Management Plan - Completed • Traffic Impact Study - Completed • Binding Site Plan Approval - Completed • City of Blaine Approvals - Completed • Army Corps Wetland Approval - Pending

Disclaimer: The information contained herein has been obtained from sources believed reliable. While we do not doubt its accuracy we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. This communication is not intended to cause or induce a breach of any existing agency agreement. E&O Insurance.




CITY OF BLAINEUniquely located in the northwest corner of Washington at the Canadian Border, Vancouver, British Columbia, lies 35 miles to the north, while Seattle is 110 miles south. Blaine, the Peace Arch City, is situated on the banks of Drayton Harbor and the foothills of the Cascade Mountain Range are 25 miles east with easy access to the Mt. Baker wilderness and Mt. Baker Ski Area.

Blaine offers a mix of housing opportunities ranging from low income to quaint nineteenth century homes to luxury waterfront homes surrounding the Arnold Palmer designed, Semiahmoo Golf Course. The average home price is $276,655. The population of the entire Blaine area is approximately 11,000, including 4,695 within the city limits. There is no State income tax in Washington and the state sales tax rate is 8.4%.

Climate

Mean low/high temperature - 40/62 degrees Rainfall - 36 inches

http://www.ci.blaine.wa.us http://www.ci.blaine.wa.us/DocumentView.asp?DID=299http://www.city-data.com/city/Blaine-Washington.html http://www.cascadegatewaydata.com http://www.portofbellingham.com




C i l

Pitt Meadows

North Vancouver (District of)

Abbotsford

Delta

New Westminster

North Vancouver (City of)

Chilliwack

Port Moody

Maple Ridge

Burnaby

Blaine

$435 100 00

$418,051.00

$350,548.00

$383,082.00

$323,104.00

$280,460.00

$272,479.00

$271,435.00

$261,021.00

$239,679.00

$184,209.00

$0.00

Richmond

Vancouver

Langley (Township of)

Port Coquitlam

Surrey

Mission

Langley (City of)

Coquitlam

$1,030,418.00

$676,671.00

$563,049.00

$539,810.00

$530,893.00

$507,097.00

$488,733.00

$435,100.00

MUNICIPAL DEVELOPMENT COSTS

Fees and Approval Times

The construction of a single storey 100,000 square foot industrial warehouse with office on 5.5 acres of land requiring both subdivision and rezoning.

MUNICIPAL APPROVAL TIMES

Fees and Schedule

Total approval times, from application date to Building Permit are shown. Approval time frames shown can and will extend beyond the periods noted if the developer does not supply necessary information with the initial application or respond to requests for additional detail or clarification in a timely manner.

North Vancouver (District of)

Burnaby

Surrey

Langley (City of)

Mission

Pitt Meadows

Richmond

Langley (Township)

Chilliwack

Abbotsford

Blaine

150

150

150

120

120

120

120

120

120

90

90

30

Port Coquitlam

New Westminster

Vancouver

Maple Ridge

North Vancouver (City of)

Port Moody

Coquitlam

Delta

510

270

270

240

240

180

150

150

Source: 2014 NAIOP Regional Industrial Development Cost Survey




BLAINE INDUSTRIAL PARK | LAND PARCEL PRICING & LEASE RATES

Parcel Total Acres

Dry Acres

Wet Acres

Sale Price / sf

Est. Net Lease Rate / sf / annum

Price / Acre Office (sq. ft.)

Warehouse (sq. ft.)

Price / Buildable

Price ($USD)

A1 6.59 2.45 4.14 $ 5.50 $6.00 $239,580 0 66,586 $23.71 $1,578,000

B1 29.89 11.3 18.59 $ 5.30 $6.50 $230,868 14,700 292,019 $22.50 $6,900,000

C1 4.3 2.53 1.77 $ 6.40 $12.00 $278,784 48,022 0 $24.96 $1,198,000

C2 4.27 2.48 1.79 $ 6.45 $12.00 $280,962 48,022 0 $24.98 $1,199,000

Package 45.05 18.76 26.29 $ 5.91 n/a $257,549 110,744 358,605 $24.04 $10,878,000

Land values have increased significantly in recent years, growing by 10-15% per year in Richmond, Burnaby, Delta, Coquitlam and Port Coquitlam. Growth rates have been lower in Surrey and Langley (6-8% growth per year) with little or no change in Vancouver and North Vancouver. The growth rate has not, however, been steady over the period, with some decline during the 2009 recession. The market has returned strong in these areas since that time.

INDUSTRIAL LAND VALUES (PER ACRE), METRO VANCOUVER SUB-MARKETS

INDUSTRIAL LAND VALUES PER ACRE

Information and data sourced from ‘Industrial Land Intensification Analysis’ by the Vannstruth Consulting Group




Disclaimer: The information contained herein has been obtained from sources believed reliable. While we do not doubt its accuracy we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions, or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

KEY AMENITIES AND DEVELOPMENTS

SR 543 - I5 TO CANADIAN BORDER

(Additional Lanes for Freight - Completed February 2008)

As of February 2008, Pacific Highway (State Route 543) was dramatically changed and improved through Blaine.The highway was reconstructed, lowered and repaved from Boblett Street to the U.S.-Canada border. A new interchange at D Street and a designated truck lane were built. The new truck lane is on the east side of the Duty Free Store and lines up with the commercial inspection booths at the border. These improvements will help increase safety, improve freight movement and relieve congestion.

For more information, visit http://www.wsdot.wa.gov/Projects/

SR 543 before construction - a narrow two-lane roadway.

SR 543 as construction is complete.




PACIFIC HIGHWAY CROSSING

PEACE ARCH CROSSING




NATURES PATHIn August of 1999, Nature’s Path designed and built a second 70,000 sq. ft production facility in Blaine, WA, adding a new granola line and additional ready-to-eat organic cereal offerings.

In 2004, the Blaine plant doubles in size and Nature’s Path opens its own 175,000 sq. ft. distribution facility, for a total of 400,000 sq. ft. of owned facilities.

http://www.naturespath.com

GOLDEN NUT COMPANYThe Golden Nut Company is located on 1555 Odell Road. Golden Nut is owned by the Golden Boy food company, based in Burnaby, British Columbia.

A 15,000 square foot cooler is housed within the 80,000 square foot warehouse. The company wanted to set up a facility in Blaine because of the international relationship.

The company is also western Canada�s largest private labeler of peanut butter. The company is a major importer and distributor of nuts, dried fruits and other dried goods.

TOTALLY CHOCOLATETotally Chocolate was launched in 1988 and produces chocolate for business purposes such as corporate gift-giving, customer appreciation, and sales promotion. The firms offers a complete range of services from the design, through artwork, mold-making, production, packaging and shipment. The 60,000 square foot factory output exceeds 1500 pounds of completed product per hour.

http://www.totallychocolate.com/

BIOPLEX NUTRITIONBioplex Nutrition recently expanded their operations to a new 15,600-square foot manufacturing facility at 2252 Odell Road in Blaine and closed the doors on their Axton Road plant in Bellingham.

The company manufactures more than 80 varieties of dairy and egg protein mixes as well as other nutritional supplements. National sales manager Bill Wicker said what attracted the company here was the friendliness to development by city planning officials and land value, as well as the proximity to Canada and Interstate 5.

http://www.bioplexnutrition.com




SITE RENDERING




TOTALLY CHOCOLATE

NATURESPATH

BIOPLEXNUTRITION

BLAINE INTERNATIONAL MALL

BLAINE HARBOUR

PACIFIC HIGHWAYBORDER CROSSING

PEACE ARCHBORDER CROSSING

GATEWAYCOMMERCIAL DISTRICT

GOLDEN NUT COMPANY

US BORDER PATROL HQ

BLAINECITY HALL

TC TRADING COMPANY

A&A CUSTOM BROKERS

For company relocation or expansion assistance anywhere within Whatcom County contact: John Michener [email protected] Dodd Snodgrass [email protected] Port of Bellingham 1801 Roeder Avenue Bellingham WA 98225 (360) 676-2500 www.portofbellingham.com

Whatcom County Washington State

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W h a t c o m C o u n t y O v e r v i e w – P o r t o f B e l l i n g h a m

Contents

Why Whatcom? ............................................................................................................................................................................................................... 3

Demographics .................................................................................................................................................................................................................. 6

Post-Secondary Education ......................................................................................................................................................................................... 8

Four-year Institutions ...................................................................................................................................................... 8

Two-year Institutions ...................................................................................................................................................... 9

Workforce Training Programs ............................................................................................................................................................................... 10

Labor Force ..................................................................................................................................................................................................................... 11

Tax Environment .......................................................................................................................................................................................................... 13

Tax Incentives ................................................................................................................................................................................................................ 14

Funding Options ............................................................................................................................................................................................................ 15

Transportation .............................................................................................................................................................................................................. 17

Major Highways ............................................................................................................................................................ 17

Rail Service .................................................................................................................................................................... 17

Ship Service ................................................................................................................................................................... 18

Air Service ..................................................................................................................................................................... 19

Foreign Trade Zones ...................................................................................................................................................... 20

Utilities .............................................................................................................................................................................................................................. 21

Largest Employers in Whatcom County ............................................................................................................................................................ 23

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Why Whatcom? Imagine fishing for salmon in the morning and skiing at one of the Northwest’s best ski areas in the afternoon? We’ve got that! Maybe you would prefer a day of world class mountain biking, (check out Galbraith Mountain)

followed by a round of amazing local microbrew – with five breweries in Bellingham - that’s no problem. Looking for a day of great shopping followed by dinner and a show with an international flair? The multicultural City of Vancouver, British Columbia is right next door. Home to over 200,000 people from the urban City of Bellingham, to numerous more rural towns, Whatcom County has multiple safe and friendly communities in which to raise your family. Residents enjoy a wide array of recreational opportunities in a beautiful environment while at the same time having access to quality jobs,

education, healthcare and training. Our distinctive Northwest lifestyle mixes a creative culture with a casual nature that makes the region a very attractive place to live.

Real Estate Information A comprehensive listing of commercial real estate properties as well as extensive demographic information can be found at the Whatcom Prospector website. All Commercial properties on the local Multiple Listing Service for the County are automatically uploaded to this site.

Location Whatcom County & the City of Bellingham are situated between Vancouver, British Columbia, 60 miles (98 km) to the north (regional pop. 2.6mm) and Seattle, Washington, 89 miles (144 km) to the south (regional pop. 3.5mm). Interstate 5 (I-5), BNSF Railway, and Bellingham International Airport all allow for convenience and ease of transportation. Maritime Trades, Petrochemical Refining, Aluminum Smelting, Higher Education

and Food Processing are significant industries in the local economy. Employers can draw on a diverse regional labor force of 160,000 workers in two counties. The region is very well suited for commerce with Asian destinations, as shipping via ocean freighter is two days faster via local ports compared to the Los Angeles/Long Beach area. World leading aerospace and related manufacturing facilities are easily reached from the Whatcom region. Boeing Commercial Aircraft’s 747, 777, and 787 final assembly facilities are 70 miles down I-5 at Paine Field, and the 737 production facility is 34 miles further south in Renton.

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Recreation & Leisure Whatcom County is known for its proximity to an incredible array of outdoor activities with something to do in each of the four seasons. Golfing, Skiing, hiking, kayaking, bicycling- road and trail, boating, horseback riding, bird watching, climbing, fishing- salt and fresh water, sailing and hunting just to name a few! It’s all here, and it’s all close. For information about these and other activities in Whatcom County, please visit Bellingham Whatcom County Tourism Located fifty miles east of Bellingham is 10,778 foot Mount Baker, an ice-clad volcano that is the highest mountain in the north Cascade Range. Nearby, the Mt. Baker Ski area not only has the longest ski season (Nov.-April) in the state, but also claims the world’s greatest recorded snowfall in one season: 1,140 inches!

Housing Affordability The Housing Affordability Index measures the ability of a middle-income family to carry the mortgage payments on a median price home. When the index is 100 there is a balance between the family’s ability to pay and the cost. Higher indices indicate housing is more affordable. As shown in the table below, as of 4th Quarter 2012 Whatcom County has a HAI of 149.0 meaning that housing in the County is affordable relative to the median family income, compared to the Seattle metro area.

Climate

Average Daily Temperature (°F) July January Annual High 73 46 59.0 Low 54 35 44.1

Average Precipitation (Inches) Annual Rainfall 36.0 Snowfall 8.60

Days Sunny or Partly Sunny 164 Range Elevation (Feet) Sea Level - 10,778

Housing Affordability Index: 4th Quarter 2012

Median Price

Mortgage Rate

Monthly Payment

Median Family Income HAI

Starter Monthly Payment

Median Household

Income

First Time HAI

Whatcom County

$261,300 3.58% $948 $67,800 149.0 $935 $53,100 82.8 King County

$381,100 3.58% $1,383 $89,500 134.9 $1,363 $71,420 76.4

Source: Washington Center for Real Estate Research/Washington State University

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Healthcare St. Joseph's Hospital is a 253 bed, two-campus medical center and a Level III Trauma Center, located in Bellingham, Washington. This facility offers comprehensive health care for the Whatcom County region. Services include 24-hour Emergency and Trauma care, Oncology, Cardiology, Mental Health Services, Hospice, Orthopedics, home-like birthing center and a full range of inpatient and outpatient services.

There are over 200 physicians/surgeons, 130 dentists, 75 chiropractors, and 20 naturopathic physicians serving Whatcom County. The County also offers several physical therapy centers, excellent nursing homes, premium retirement centers, and special care homes for the disabled and elderly.

Education System Education is an integral part of our community with a total student population of over 55,000. There are over 27,000 students in Grades K-12 in seven school districts, with the balance of the student population attending one of five higher education institutions in Whatcom County. Based on standardized testing administered by the State of Washington in reading, writing, math and science, Bellingham School District, the largest school district in Whatcom County, beat state averages in every subject and grade. Lynden and Nooksack Valley school districts also exceeded state levels. (Instruction Measurements of Student Progress and High School Proficiency Exam, Washington State Report Card)

Public School Districts

School District Enrollment

Bellingham 11,151

Blaine 2,098

Ferndale 5,223 Lynden 2,845

Meridian 2,350

Mt. Baker 1,916

Nooksack Valley 1,616 Source: WA State Superintendent of Public Instruction, Fall 2012

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Demographics Population According to the WA State Office of Financial Management, Whatcom County’s estimated population was 205,262 residents in 2012. Since 2000, the County’s population has increased by 23.1%; which is slightly higher than the 17% population increase in Washington State over the same time period.

Whatcom County Washington State Population (2012) 205,262 6,897,012 Population (2010) 201,104 6,724,543 % Change (2010-12) 2.0% 2.6% Median Age (2010) 36.6 37.3 Average Household Size (2010) 2.43 2.51 Median Household Income (2010) $49,294 $54,888 Housing Units (2010) 90,665 2,885,677 Diploma or higher, age 25+ (2007-2011) 91.4% 89.8% Bachelor’s degree or higher, age 25+ (2007-2011) 31.8% 31.4% Source: U.S. Census Bureau & WA State Office of Financial Management

Population by City 2005 2010 2012 Whatcom 180,800 201,140 205,262 Unincorporated 79,848 87,085 89,683 Incorporated 100,952 114,055 115,579 Bellingham 72,320 80,885 81,360 Blaine 4,240 4,695 4,760 Everson 2,080 2,486 2,520 Ferndale 9,750 11,415 11,830 Lynden 10,480 11,951 12,340 Nooksack 970 1,342 1,370 Sumas 1,112 1,311 1,399 Source: WA State Office of Financial Management

Population by Age Group: 2010 Under 18 42,205 20.98% 20-34 46,446 23.1% 35-49 37,527 26.9% 50-64 39,961 18.7% 65 & Older 26,640 13.2% Total 201,140 Median Age 36.6 Source: WA State Office of Financial Management– 2007 Projections (Medium Series)

Population Projections 2010 2020 2030 Whatcom County 201,140 225,307 256,643 Washington 6,724,540 7,411,977 8,154,193 *BERK- Population and Employment Projections. July, 2013

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Households According to 2010 estimates by the U.S. Census Bureau, Whatcom County has 80,370 households. Family households account for 60.8% of this total, while nonfamily households make up the other 39.2%. Whatcom County has a median household income of $49,294.

Households by Type: 2010 Type Households % of Total

Total Households 80,370 Family Households 48,862 60.8% With own children under 18 years 14,766 18.4% Married-couple family 38,577 47.9% With own children under 18 years 15,501 19.3% Male householder, no wife present, family 3,192 3.9% With own children under 18 years 1,702 2.1% Female householder, no husband present, family 7,093 8.8% With own children under 18 years 4,694 5.8% Nonfamily Households 31,508 39.2% Householder living alone 22,357 27.8% Average household size 2.43 Average family size 2.97 Source: U.S. Census Bureau

Households by Income: 2011 Type Households % of Total

Total Households 79,003 Under $35,000 27,866 35.3% $35,000-$49,999 10,635 13.5% $50,000-$74,999 15,609 19.8% $75,000 & Over 24,893 31.5% Median Household Income $49,294 Source: U.S. Census Bureau

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Post-Secondary Education Four-year Institutions Western Washington University (WWU) Located in Bellingham, Western Washington University is Washington State’s third largest university. Western Washington University is the highest-ranking public, master’s-granting university in the Pacific Northwest, according to the 2013 U.S. News & World Report college rankings.

Northwest Indian College (NWIC): Located on the Lummi Indian Reservation, approximately 7 miles west of Bellingham, Northwest Indian College is the only accredited tribal college in the states of Washington, Oregon and Idaho.

Trinity Western University (TWU): TWU’s main campus is located in Langley, BC; and in the spring of 2007, TWU extended its academic programs into the United States for the first time, focusing on accelerated adult education. The first degrees offered were a Bachelor of Psychology and a Bachelor of Social Sciences. Name of Institution Location Total Enrollment* Degree Programs Trinity Western University Bellingham 4000 B.A. Psychology Notes* Includes Campus in Langley B.C. TWU Bellingham is designed for working adults to finish their college degree.

B.A. Multi-Disciplinary Social Sciences

B.A. Leadership

Name of Institution Location Under Graduate

Graduate Total Enrollment

Colleges Graduate Degrees

Western Washington University

Bellingham 13,396 1,179 14,575 Business and Economics Master of Arts

Notes* Campus facilities include an electronic music studio, an air pollution lab, a motor vehicle research lab, a marine research lab, a wind tunnel, an electron microscope, and a neutron generator lab. Western's Vehicle Research Institute has led Automobile Magazine to describe Western as "very possibly the best school in the country for total car design."

Fairhaven College of Interdisciplinary Studies

Master of Business Administration

Fine and Performing Arts

Master of Education

Humanities and Social Sciences

Master of Music

Huxley College of the Environment

Master of Science

Sciences and Technology

Master in Teaching

Woodring College of Education

Master of Professional Accounting

Name of Institution Location Under Graduate Total Enrollment Programs of Study Northwest Indian College Bellingham 584 584 B.S. – Native Environmental Science

Notes* NWIC has a prestigious reputation that attracts collaborative relationships and partnerships that provide abundant resources and opportunities for tribal communities, students and their families.

Associate of Arts and Science Degree

Associate of Science – Transfer Degree

Associate of Technical Arts Degree

Various Certificate Programs

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Two-year Institutions

Bellingham Technical College (BTC): Bellingham Technical College is the only technical college in northwest Washington State. BTC offers more than thirty associate degree and fifty certificate programs. BTC students prepare for careers in many fields, from advanced manufacturing to accounting; process technology to pastry; registered nursing to radiologic technology.

Whatcom Community College (WCC) WCC offers courses and associate degrees necessary for successful transfer to baccalaureate institutions; professional technical degrees and certificates; and pre-college, self-development, and community education courses and programs.

Educational Attainment- 2010

Name of Institution Location Under Graduate Under Grad. Full Time Equivalent Bellingham Technical College Bellingham 4,000 2,150 Notes* BTC partners with local and regional industry to address workforce needs in a variety of fields and there are many opportunities to enter high-wage, high-demand careers. BTC is a Center of Excellence in the field of Process Control Technology. Degree and Certificate Programs Construction and Engineering Technology Culinary Arts Fisheries and

Aquaculture Health Careers and Child and Family Studies

Transportation and Mechanical Technology Manufacturing and Industrial Technology Management, Business, and Computer

Technology

Name of Institution Location Under Graduate Under Grad. Full Time Equivalent Whatcom Community College Bellingham 11,263 4,333

Notes* Whatcom Community College is a comprehensive two-year college serving over 7,000 students quarterly and more than 12,000 annually.

Degrees and Programs Business and management Law Education and teaching Computer science and engineering Media Liberal arts Office and administration Medical support and technology Nursing and emergency medicine Hospitality Security and law

enforcement Therapy and counseling

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Workforce Training Programs Having an adequately trained workforce suitable to your operation is integral to successful business operations. Washington has several initiatives to keep an adequate supply of trained workers available to the manufacturing industry. Many of these programs and support organizations work closely with our local technical and community colleges. • Job Skills Program

This program helps your business remain competitive. You can access training by applying with a college and save up to $700 per trainee. This program provides matching funds for training, for onsite or classroom training, or a combination of both. Training is generally provided through community colleges. The program may be used by companies new to the state and by existing Washington companies that are expanding or upgrading their workforce. Eligibility is based in part on job creation and hourly wages. Contact: 360-704-4400 http://www.sbctc.edu/College/_e-wkforcejobskillsprogram.aspx

WorkSource Northwest WorkSource Centers provide one-stop hiring and training assistance to businesses and job-seekers. Services for businesses include computer job matching, online job postings and resume bank, customized training, and consultation. WorkSource Centers are a joint venture of numerous workforce, education, and training agencies. Center locations are listed on the WorkSource Web site. Whatcom County: 360-676-1521 http://www.worksourcenorthwest.com/

• Northwest Workforce Council Authorized under the federal Workforce Investment Act, the Council convenes private and public sectors to address workforce development issues. Led by a business majority the Council’s core business is to improve the ability of our workforce to meet the demands of business and industry. Our system provides an array of business services, with resource investment in targeted industries. Innovative solutions are drawn from vibrant partnerships and through strategic resource investment of training and the leveraging of other public/private funds. Whatcom County: 360-676-3209 http://www.nwboard.org

• Customized Training Program

The Washington Customized Training Program (CTP) was created by the State Legislature in 2006 to provide training assistance to businesses locating new jobs or expanding jobs in the state. Training is provided by community, technical or private career colleges and can include formal training in: basic education and skills, English language for non-native speakers, technical skills and job-related instruction, skills assessment and evaluation, and training equipment, materials, facilities and supplies. Contact: 360-704-4400 http://www.sbctc.edu/college/_e-wkforcecustomizedtraining.aspx

• Workforce College Workforce College is an online database of training programs offered by Washington State community and technical colleges. Businesses can search for colleges that provide training in a selected subject area and request proposals for customized training. http://www.workforcecollege.com/

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Labor Force Labor Characteristics Whatcom County businesses are able to hire employees from a highly-skilled labor force. Whatcom County is home to five universities/colleges. There are ample employees training programs available for companies.

2012 Labor Force Employed Unemployed Unemployment Rate

Whatcom County

105,360 97,410 7,950 7.5% Skagit 56,440 51,220 5,220 9.2%

WA State 3,481,460 3,197,290 284,170 8.2% United States 154,975,000 142,469,000 12,506,000 8.1%

Source: WA State Employment Security Department

Employment and Wages by Industry- 2012 Industry Employment % of Total Wages % of Total

Avg. Wage

Agriculture 3,439 4.3% $89,586,167 2.7% $26,050 Construction 5,081 6.3% $292,118,812 8.9% $57,492 Manufacturing 8,703 10.8% $508,289,913 15.5% $58,404

Wholesale trade, transp. & warehousing

4,566 5.7% $204,045,645 6.2% $44,688

Retail Trade 10,373 12.9% $264,131,013 8.1% $25,463 Information 1,859 2.3% $129,756,799 4.0% $69,799 Finance, insurance & real estate 2,840 3.5% $143,865,203 4.4% $50,657 Prof/Tech services & management 3,499 4.4% $202,613,862 6.2% $57,906

Administrative services 3,019 3.8% $96,239,946 2.9% $31,878 Health care, social & education services

10,540 13.1% $431,494,999 13.2% $40,939 Hospitality/Tourism 8,636 10.7% $140,715,896 4.3% $16,294 Government 14,102 17.5% $668,098,885 20.4% $47,376

TOTAL 80,403 $3,272,301,389 $40,700 Source: WA Employment Security Dept.

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Labor Costs Wages Washington’s workforce is one of the most educated and skilled in the nation, as a result Washington rewards our employees with a state minimum wage of $9.19. The Washington State Department of Labor and Industries makes an annual cost of living adjustment to the minimum wage. Information regarding Workforce, Workers Compensation, and Unemployment Insurance can be found at the Washington State Employment Security Dept and the Washington State Dept. of Labor and Industries

Unemployment Insurance and Workers’ Compensation All businesses hiring employees are required to register for unemployment insurance and workers’ compensation. By completing the master business application, you will register for workers’ compensation. After filing an application, the Employment Security Department and Department of Labor and Industries will send information about employee quarterly report forms.

Representative Mean Hourly Wages- 2013

Whatcom County WA State Bookkeeping, Accounting, & Auditing Clerks $18.17 $19.19

Carpenters $24.24 $24.20 Cashiers $12.66 $12.71

Janitors & Cleaners $13.92 $13.91 Laborers & Freight, Stock, & Material Movers $13.05 $15.21

Office Clerks, General $15.08 $15.63 Production & Operating Wkrs, 1st-Line spvrs/Mgrs of $24.81 $29.76

Retail Salesperson $12.94 $14.16 Sales Reps, Wholesale/Manuf. $24.04 $32.55

Waiters & Waitresses $12.75 $13.17 Welders, Cutters, Solderers, & Brazers $23.70 $22.09

Source: WA State Employment Security Department

Unemployment Insurance Tax

0.14 – 5.82% of the first $41,300 of an employee’s salary based on rate class. The average tax rate for 2012 was 2.02%. This is a historically low tax rate.

Industrial Insurance Washington is the only state with workers’ compensation tax rates based on the hours worked, rather than per each $100 of paid wages. This assures that an inflationary increase is not built into the system when wages rise. Rates are based on business classification and experience. Insurance is not paid for hours the worker is off the job including sick leave, vacation or holiday hours and leaves of absence.

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Tax Environment Washington state was named the “best state to start a business” in 2009 by U.S. News & World Report. The ranking was based on the high marks Washington received in the 2008 New State Economy Index and the Small Business Survival Index in 2008. U.S. News & World Report cites Washington’s strong manufacturing sector and low taxes as the reason for this high ranking.

The State of Washington does not have a corporate or personal income tax. This means that regardless of the profitability of the company or the personal wealth of the employees, the company will only be taxed on its gross receipts.

The State of Washington is one of only seven states that do not levy a Personal Income Tax. Washington also does not impose a tax on intangible assets such as bank accounts, stocks, or bonds. Additionally, Washington does not tax retirement income earned and received from another state.

The Washington State tax system is designed to reward and incent companies who increasingly improve productivity. The following tax policies detail our successful strategy. State tax details are available at Washington Dept. of Revenue. Bellingham office: 360- 676-2114.

• Business and Occupation Tax: Washington uses a Business and Occupation Tax (B&O) in place of an income tax, depending on the industry, this taxation structure can be very beneficial to the company. This flat rate tax system allows a manufacturer to retain more earnings as profitability grows.

• Sales and Use Tax: Washington State relies on consumer taxes rather than personal income tax and the most significant of these taxes is the retail sales tax. Sales tax does not apply to food products, prescription drugs, or professional and personal services.

• Washington state property taxes vary due to voter-approved special levies. Property tax is administered by local governments. County assessors value and assess the tax and county treasurers collect it. Washington does not assess property tax on intangible assets including patents and copyrights.

Whatcom County Tax Booklet

Taxes in Whatcom County

Type Rates Property $10-$11/$1000 value Sales 8.7% B&O - state* Retailing 0.471% Manufacturing/Wholesale 0.484% Services 1.5% *Reduced rates for certain classifications, deductions and credits may also be included. Bellingham and Everson have local B&O taxes

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Tax Incentives Incentive Programs: Deferrals, Exemptions, and Credits New and existing manufacturers, research and development firms, and certain high technology companies can benefit from several tax incentives offered by the state of Washington.

These incentives are intended to encourage the creation and preservation of family-wage jobs, especially in areas with high unemployment.

Incentives – General Categories

General Manufacturing Rural County/Community Empowerment

Zone (CEZ) Incentives High Unemployment County/CEZ High Technology Industry Aerospace Industry Extracting & Timber Manufacturing Food Processing/ Manufacturing Industry

Biofuel Industry Semiconductor Industry Aluminum Smelting Industry Farming & Agriculture Renewable Energy/Green Incentives Miscellaneous Incentive Programs Warehouse Incentive Programs

The following table is a small sample of a few of the tax incentives available:

Incentive Target Savings

B&O Tax Reduction Manufacturers of Biodiesel Fuel, Biodiesel Alcohol Fuel, Feedstock and Wood Biomass Fuel

0.138% instead of regular 0.484%

Manufacturer’s Sales/Use Tax Exemption

Purchases of Machinery & Equipment Used Directly in a Manufacturing Operation

6.5% State Sales Tax 0.5 - 1.0% Local/County Tax

Property/Leasehold Tax Exemption Manufacturers of wood biodiesel Depend on location

B&O Tax Credit for New Hires Job Creation Up to $4,000 credit for each new position

High Tech B&O Credit for R&D Spending

Certain Qualified Expenditures Accrued During R&D Activities

Dependent upon R&D expenditures

B&O Tax Credit Customized Employment Training Program 50% of cost of training program

Job Skills Program - Competitive Grant Training Average Savings =$100,000

For a current list of all Incentives available: Washington State Tax Incentives 1-800-647-7706

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Funding Options The tables below briefly summarize the loans, guarantees, grants, and bond programs available to Whatcom County companies for both public and private land:

Method Description

Community Economic Revitalization Board (CERB)

Uses: Finances public infrastructure to encourage new development and expansion in targeted areas. Eligible Locations: Statewide - Restricted to Public Infrastructure Amount: Average $1 Million, exceptions considered Info: CERB , 360-725-4000

Small Business Credit Initiative (SBCI)

Uses: Loans to small businesses that fall just short of conventional business loan requirements. Eligible Locations: Small Business Amount: $5,000 to $1 million Info: SBCI , 360-725-4000

CDBG Float Loans

Uses: Short term (30 months) lending at low interest rates for qualifying projects. Eligible Locations: Cities/counties eligible for Washington State Small Cities CDBG program assistance Amount: Up to $9 million Info: CDBG Float Loans , 360-725-4000

HUD Section 108 Guaranteed Loans

Uses: Loan guarantees awarded through cities and counties for projects that will create or retain qualified jobs. Eligible Locations: Cities/counties eligible for Washington State Small Cities CDBG program assistance Amount: $7 million (min. $700,000) Info: Section 108 , 360-725-4000

Port of Bellingham Revolving Loan Fund

Uses: Loans for manufacturers in need of gap financing. Must be a job creating activity. Eligible Locations: Manufacturers in Whatcom County Amount: Max. $75,000 (min. $30,000) Info: Port of Bellingham , 360-676-2500

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Whatcom County Economic Development Investment (EDI)

Uses: Loans or grants awarded for projects that will create or retain qualified jobs. Eligible Locations: Local government entities in Whatcom county Amount: Up to $2 million Info: EDI Program , 360-676-6717

EB-5

Who: Foreign investors seeking to gain lawful permanent residence for themselves and their immediate family

What: Generally, the minimum investment amount is $1,000,000 USD. However, the minimum investment amount is adjusted downward to $500,000 USD when you select a project in a Targeted Employment Area. Benefits include living, working or retiring anywhere in the United States (not limited to the location of the investment), the sponsorship of Green Cards for your relatives, and eligibility to become a United States Citizen.

Info: EB-5

Tax-Exempt Industrial Revenue and “Exempt Facilities” Bonds

Who: Primarily manufacturing and processing; may include wastewater, mass commuting, solid waste disposal, recycling or cogeneration. What: Up to $10 million in bonds may be issued to finance a project. Land acquisition, building construction, new equipment or purchase of existing facility. Bonds are exempt from federal income tax to bond holder, resulting in lower rates to borrower than conventional financing methods.

Info: Port of Bellingham IRBs , 360-676-2500

For comprehensive information on financing resources visit:

WWU Small Business Development Center

360-778-1762

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Transportation Whether you’re in need of transportation for business or personal reasons, Whatcom County has an excellent multimodal transportation system.

Major Highways Interstate 5 is the main Interstate Highway on the West Coast of the United States. I-5 runs through three of Whatcom County's major cities: Bellingham, Ferndale, and Blaine. I-5 links the area to Vancouver, B.C. to the North and Seattle to the South. Trucking/Freight The following list is an example of freight companies serving the Whatcom County Region. Please contact your preferred shipper for service information to the area.

Rail Service Freight Nationwide connections can be made from Whatcom County. Burlington Northern Santa Fe offers north/south and transcontinental freight service. The nearby Canadian Pacific Railway and Canadian National Railway offer freight and passenger rail services east across Canada. • Burlington Northern Santa Fe Railway Co. (www.bnsf.com) • Canadian National Railway (www.cn.ca) • Canadian Pacific Railway (www.cpr.ca)

Passenger Amtrak provides regularly scheduled passenger rail services that connect Whatcom County to British Columbia to our north; and to Seattle, WA to our south. (www.amtrak.com)

Highway Distance from Bellingham to: Metro Area Miles 1 Vancouver, British Columbia 50.5 2 Seattle, Washington 92.4 3 Portland, Oregon 265 4 Spokane, Washington 344 5 Boise, Idaho 598

Company Website Ludtke-Pacific Trucking www.ludtke.com NW Shippers www.nwshippers.com Kam-Way Transportation www.kamwaytransportation.com TC Trans Inc www.tctransport.com Oak Harbor Freight Lines www.oakh.com Peninsula Truck Lines www.peninsulatruck.com Haney Truck Line www.gohaney.com YRC Shipping www.yrc.com

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Ship Service The Port of Bellingham operates transportation terminals, marinas, real estate developments, public parks and trails, environmental stewardship programs and economic development services. This includes Squalicum harbor, Blaine harbor, and the Bellingham Shipping Terminal which each offer a variety of services to both commercial and pleasure boaters. Port of Bellingham Maritime Services , 360-676-2500

Other nearby ports include: Port Vancouver B.C. www.portmetrovancouver.com Port of Everett www.portofeverett.com Port of Seattle www.portseattle.org

Cargo Ship Loading Services: Jones Stevedoring www.jonesstevedoring.com/wa/bellingham.html SSA Marine www.ssamarine.com/locations/pacificNW/bellingham.asp Bellingham Cold Storage www.bellcold.com/shiploading.html

Ship Loading/Unloading Facilities

Port of Bellingham Shipping Terminal Bellingham Cold Storage Facility

Channel Depth 32 feet Draft 30 ft MLW

Berthing Space 1,360 feet Dock 900 ft

Outer Berth Depth (two berths) 30.5 feet Ship loading Round the clock

Inner Barge Berth length 550 feet Rail docks 10

Inner Barge Berth depth 26 feet Truck Bays Over 50

Average Tidal Range 8 feet Freezer capacity 170 million lbs

Open Storage Approx. 10 acres

Russia export certified Yes

Covered Storage 85,000 sq/ ft

USDA certified inspection point Yes

Back-up land (black-topped, fenced, patrolled)

17 acres

Passenger • Alaska Marine Highway System (www.dot.state.ak.us/amhs) • Washington State Ferry System (www.wsdot.wa.gov/ferries)

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Air Service Commercial/General Aviation Airport Bellingham International Airport (BLI) serves the commercial, general aviation, and corporate air transportation needs of the region. A full-service commercial airport located south of the U.S.-Canada border, BLI is 90 miles north of Seattle, WA, and only 39 minutes by commuter aircraft to SeaTac Airport. Bellingham International Airport accommodates more than 700,000 travelers each year. The airport amenities include rental car service and gift shop/bistro services. An executive conference room is available for fly-in meetings. Trade-related services at the airport include a foreign trade zone, customs brokerage, U.S. Customs international terminal, FBO, aircraft maintenance and air cargo services. BLI is one of the fastest growing airports in the US!

Seattle-Tacoma International Airport (SEA) is located in Seattle, WA and is approximately 90 miles south of Bellingham, Washington. (www.portseattle.org/Sea-Tac) Vancouver International Airport (YVR) is located in Richmond, British Columbia and is approximately 50 miles north of Bellingham, WA. (www.yvr.ca)

Flight Destinations and Airline Information

Distance from the Community in Miles – 3 miles from Bellingham Number of Runways - 1 16/34 Runway Lengths - 6701 x 150 ft. / 2042 x 46 m Full Instrument Landing Capabilities – ILS OR LOC RWY 16, RNAV (GPS) RWY 16, and RNAV (GPS) RWY 34 Hours of Operation - Tower operation 0700-2230 local time Carriers Serving Airport: Passenger - Allegiant, Horizon, Alaska, Frontier(seasonal), San Juan, NW Sky Ferry Charter – San Juan, Island Air Inc., Sun Country, Xtra Airways Overnight Express Service Availability – Yes Multiple Carriers

Alaska Airlines Phone: (800) 252-7522 http://www.alaskaair.com/ Allegiant Air Phone: (702) 505-8888 http://www.allegiantair.com Frontier Airlines Phone: (800) 432-1359 http://www.flyfrontier.com/ Island Air Inc. Phone: (360) 378-2376 http://www.sanjuan-islandair.com Northwest Sky Ferry Phone: (360) 676-9999 http://nwskyferry.com/ San Juan Airlines Phone: (800) 874-4434 http://www.sanjuanairlines.com/ Sun Country Airlines http://www.suncountry.com Xtra Airways http://www.xtraairways.com

Phoenix-Mesa (AZ) Los Angeles (CA) Oakland (CA) Palm Springs (CA) San Diego (CA) British Columbia (CD) Denver (CO) Honolulu (HI) Maui (HI) Las Vegas (NV) Reno (NV) Portland (OR) San Juan Islands (WA) Seattle (WA) Olympia (WA) Tacoma (WA) Port Angeles (WA) Port Townsend (WA)

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Foreign Trade Zones

FTZ #129: Whatcom County The Port of Bellingham is grantee of FTZ #129 with sites at Bellingham International Airport, Blaine, Sumas and Cherry Point industrial area. Under the Alternative Site Framework the Port can work quickly with potential users who wish to activate a zone use anywhere in Whatcom County. Information: Foreign Trade Zones

Custom Port(s) of Entry in the Area Blaine Site Location : 9901 Pacific Highway Blaine, WA 98230 Hours of Operation: Twenty Four (24) Hours A Day Seven (7) Days A Week This is a Service Port - A Service Port is a CBP location that has a full range of cargo processing functions, including inspections, entry, collections, and verification (19 CFR 101.1).

Sumas Site Location: 103 Cherry Street Sumas, WA 98295 Hours of Operation: Twenty Four (24) Hours A Day Seven (7)Days A Week This is a Port of Entry – A Port of Entry is any designated place at which a CBP officer is authorized to accept entries of merchandise to collect duties, and to enforce the various provisions of the customs and navigation laws (19 CFR 101.1).

Warehouses There are a number of private bonded warehouses in the County including International Market Access, Deringer and T.C. Trading Co.

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Utilities Whatcom County offers utility services and state of the art telecommunications at very reasonable rates. Each city within the County is served by a variety of providers. Electricity The following table is an example of electrical rates provided by Puget Sound Energy, the primary provider in the County

PUGET SOUND ENERGY LARGE DEMAND GENERAL SERVICE

For commercial or industrial customers with demand greater than 350 kW. Effective date: July 1, 2013. Basic Charge: $104.46 per month Demand Charge: Oct-Mar Apr-Sep Per kW of billing demand $8.94 $5.96 Energy Charge: Base rate 0.062202¢ Low Income Program 0.000617¢ 6.0228¢ per kWh Electric Conservation Program Charge 0.0037¢ per kWh Power Cost Adjustment 0.0000¢ per kWh Wind Power Production Credit (0.0028¢) per kWh Merger Credit (0.00021¢) per kWh Regulatory Asset Tracker 0.0000¢ per kWh Total per kWh Charge 6.02951¢ per kWh

Rates may vary depending on jurisdiction. The table below contains contact information for the various electricity providers in the County.

Electric Power Providers in Whatcom County

Puget Sound Energy Electric Services www.pse.com 888-225-5773 Detailed Rate Information: PSE Rate Summaries

Public Utility District #1 -- provides electric service to heavy industrial customers in Cherry Point www.pudwhatcom.org 360-384-4288

City of Blaine Electric, Water and Sewer Services www.ci.blaine.wa.us 360- 332-8820 Detailed Rate Information: www.cityofblaine.com/index.aspx?NID=91

City of Sumas Electric, Water and Sewer Services www.cityofsumas.homestead.com 360-988-5711 Detailed Rate Information: cityofsumas.homestead.com/utilityrateinfo.html

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Natural Gas Cascade Natural Gas is the natural gas provider for residents and businesses within Whatcom County.

Municipal Water and Sewer Providers

Natural Gas Rates– General Industrial Service (09-28-12) Description Current Fee Rate Basis

Basic Service Charge $24.00 Per month

First 500 therms/month $0.75635 Per therm

Next 3,500 therms/month $0.71814 Per therm

All over 4,000 therms/month $0.71236 Per therm

* Rates subject to change. Please contact Cascade Natural Gas for full rate schedule. 888-522-1130

Major Sources: The Nooksack River and Lake Whatcom are the two major water sources in the region. Public Utility District #1 Provides industrial grade water to industrial, municipal and irrigation customers www.pudwhatcom.org (360) 384-4288 City of Bellingham Water & Sewer Services www.cob.org (360) 778-8000 Birch Bay Water and Sewer District www.bbwsd.com (360) 371-7100 City of Blaine Electric Water & Sewer Services www.cityofblaine.com/index.aspx?NID=90 (360) 332-8820 City of Everson Water & Sewer Services ci.everson.wa.us/index.html (360) 966-3411 City of Ferndale Water & Sewer Services www.ci.ferndale.wa.us (360) 384-4006 City of Lynden Water & Sewer Services www.lyndenwa.org (360) 354-3446 City of Nooksack Water & Sewer Services www.cityofnooksack.com (360) 966-2531 City of Sumas Electric, Water & Sewer Services www.cityofsumas.homestead.com (360) 988-5711

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Largest Employers in Whatcom County

Notes:

1. We ask businesses for permanent and full-time employees based in Whatcom County. Getting that number is harder than you might think due to differences in how companies define full-time, how to count people who work in different locations during the year, etc. Some figures are estimated from

prior years. Source: WWU Center for Economic and Business Research, 2014

Rank Business Number of Employees1

Notes

1 PeaceHealth St. Joseph Medical Center 2672

2 Western Washington University 1462 Excludes students and other temporary employees 3 BP Cherry Point Refinery 886

4 The City of Bellingham 814

5 Whatcom County 765

6 Haggen Inc. 735 Retail grocery and corporate HQ

7 Bellingham Public Schools 731

8 Lummi Nation 710 Tribal

9 The Markets LLC 676 Retail grocery and corporate HQ

10 Aramark 620 Food services

11 Zodiac Aircraft Interiors 585 Aircraft interior manufacturer

12 Alcoa Intalco Works 560 Aluminum smelter

13 Silver Reef Casino 494

14 Whatcom Community College 439

15 Lynden School District 378

16 Walmart 378

17 Matrix Service Inc. 375 Contractor for heavy industry

18 Alpha Group/Alpha Technologies 334 Power solutions development and manufacturing 19 T-Mobile Call Center 325

20 Ferndale School District 306

21 Logos Bible Software 300 Largest developer of bible study software 22 Mt. Baker School District 285

23 Fred Meyer 280

24 Cascade DAFO 275 Designs and manufactures orthotic devices 25 Phillips 66 Refinery 275

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