Transportation = Economic Development

The Ridgefield Interchange Project

Annual Conference of theWashington State Good Roads & Transportation Association

September 18, 2009

Justin L. Clary, P.E.City Manager

City of Ridgefield, Washington

Ridgefield Location

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Ridgefield Background/History

Area originally homesteaded in the 1850s; developed on the banks of Lake River as a mill town

Incorporated in 1909 Remained a rural

community based primarily on the agriculture and lumber industries through the 1990s

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Ridgefield Background/History (Cont.)

Agricultural base slowly eroded through the years Pacific Wood Treating, community’s primary employer, filed for

bankruptcy in 1993 and ceased operations shortly thereafter Following collapse of the waterfront industry, City leaders were

faced with determining how to create a new economy

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City Limits Expanded to Interstate 5

Following the State Legislature’s enactment of the Growth Management Act in 1990, Clark County and its cities began development of comprehensive growth planning documents

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Ridgefield identified the opportunity to expand its city limits by over three miles to the east to encompass the State Route 501 interchange with I-5

Area surrounding interchange zoned for employment-based development

Ridgefield Expansion

2008 Ridgefield Comprehensive Plan Map

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Residential Growth Since City Limit Expansion

Expansion had limited affect on growth through 2003 Residential Growth – 2004-Present

825 New Homes Constructed Population grew from 2,195 to 4,215; ranked No. 8 in State of

Washington for Percentage of Population Growth Rate (2000-2009)

Approximately 1,900 residential lots have gained, at a minimum, preliminary plat approval

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2005 2007

Employment Growth Since City Limit Expansion

Employment-based growth has taken longer to realize than residential growth Approximately 500 jobs created since 2004

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Economic Development on the Horizon

Ridgefield’s Comprehensive Growth Plan projects 13,000 jobs will be created over the 20-Year planning horizon

There are a number of large-scale developments under planning and two under build-out

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Economic Development on the Horizon

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Union Ridge Master Planned Business Park

Economic Development on the Horizon

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Southwest Washington Health System Medical Campus

Economic Development on the Horizon

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Port of Ridgefield’s Waterfront Master Plan

Economic Development Attributes

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Ridgefield Junction Employment Area Approximately 1,500 acres of land zoned for employment-

based development – the largest volume of developable land in the Greater Portland/Vancouver Metropolitan area

Direct access to an international trade corridor (Interstate-5) 25-minute drive to Portland International Airport Four deep-water ports within 30 miles (Vancouver, Portland,

Kalama and Longview) Two major railroad lines within 20 miles (BNSF and Union

Pacific)

Transportation Challenge

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I-5/SR 501 Interchange Built in 1964 to serve a rural community Sole access to Interstate 5 for Ridgefield Existing capacity rapidly eroding due to recent growth Development community has long identified the existing

interchange as a detriment to recruiting quality businesses

A New Interchange

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I-5/SR 501 Interchange Sized to serve 2030 traffic flows Design initiated in 2005 through WSDOT-City partnership

Ridgefield Interchange Project Funding

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Federal SAFETEA-LU (2005) American Recovery and Reinvestment Act (2009)

State Transportation Partnership Account (2005) CTED Economic Development Grant (2005) Pre-existing Funds (2011-2013)

Local Traffic Impact Fees (2005) Transportation Benefit District (2008)

Return on Investment Study

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Study completed in 2008 sponsored by the City of Ridgefield & Identity Clark County

Objective: Analyze the impact of public investment supporting the Ridgefield Interchange Project on tax revenue, permanent job creation and overall economic activity

Analysis of: State, federal and local investment supporting the Project Projected private investment over a twenty-year horizon Study area was limited to the boundaries of the

Transportation Benefit District (approximately one-mile radius around the interchange)

Return on Investment Study - Results

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Type of Development Cost (NPV) Jobs Annual Wages

Residential $ 54,880,000 - -

Manufacturing $ 81,450,000 774 $ 36,449,000

Warehousing $ 90,240,000 562 $ 18,146,000

Office (Professional & Technical) $ 114,620,000 1,938 $ 128,354,000

Retail $ 129,820,000 1,552 $39,702,000

Total Stimulated Development $ 471,010,000 4,796 $222,651,000

Stimulated Development (20-Year Projection)

Return on Investment Study - Results

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Jurisdiction 2008 NPV Share

State of Washington $ 357,700,000 70%

Clark County $ 30,110,000 6%

City of Ridgefield $ 53,100,000 10%

Ridgefield School District $ 15,500,000 3%

Clark County Fire & Rescue $ 15,540,000 3%

C-TRAN $ 23,090,000 5%

Port of Ridgefield $ 1,230,000 less than 1%

Fort Vancouver Regional Library $ 3,640,000 1%

Interchange Transportation Benefit Dist. $ 9,240,000 2%

Total Government Revenue $ 509,200,000 100%

All Local Agencies Revenue $ 151,500,000 30%

Estimated Government Revenue (through 2028)

Return on Investment Study - Results

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Ridgefield State Economic Stimulus

All Public

Net Present Value Benefit-Cost $ 51,600,000 $342,700,000 - $474,950,000

Payback Ratio (Benefit/Cost) $ 35.40 $29.81 - $37.72

Private:Public Investment Ratio - - $47 to $1 $16 to $1

Direct Return on Investment

Actual Return on InvestmentTo Be Determined….

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