Cathlamet suffers deeply from economic crisis, but optimism remains

Published 5:00 pm Sunday, May 31, 2009

(Editor’s note: In the fall of 2006, CRBJ began reporting on the efforts of Cathlamet, Wash., officials to boost their small town’s economy by attracting more tourist dollars. Our reporter recently revisited the town to learn what impact the recession has had on those endeavors.)

Cathlamet has been here before.

After surviving the various boom-and-bust periods of the timber, fishing and farming industries, this community is facing new challenges to its survival brought on by the nation’s economic downturn.

Only a short time ago local community leaders and business owners were touting this picturesque river town of less than 575 residents for its potential as a stopping-off point for tourists traveling to or from the Washington and Oregon coasts.

Cathlamet is steeped in history dating back to the town’s initial settlement as a trading post in the mid-1800s. The area boasts a national preserve for Columbian white-tailed deer and other endangered wildlife. The preserve, only a short drive from town, is open to the public. It seemed only natural that tourism held the key to Cathlamet’s future economic vitality.

In 2006, with the local visitors’ center operating full time promoting Cathlemet’s amenities to the rest of the world, new business ventures started sprouting up in the town’s small commercial district. There was even talk of building a motel. The community was enthusiastically embracing its newfound economic opportunity.

Then the recession hit – and the dream of reviving Cathlamet’s economy quickly evaporated.

Recession has caused ‘a real crisis’

“Cathlamet is struggling,” said David Goodroe, executive director of the Lower Columbia Economic Development Council. “The recession has caused a real crisis.”

Goodroe said logging, which remains one of Wahkiakum County’s leading industries, has been hard hit by the falling economy. In December 2008, one of the largest local logging companies furloughed nearly all of its 125 workers.

Although the second-smallest county in the state based on population, Wahkiakum County, which includes Cathlamet, recorded the highest unemployment rate in the state in March – 15.7 percent, Goodroe noted. That’s double the 7.8 percent jobless rate the county reported for the same month in 2008.

The economic fallout has led to the loss of a number of local businesses, including two restaurants.

A walk along the two blocks that make up Cathlamet’s main commercial area find nearly half of the shops vacant.

A three-year grant to fund a full-time manager for the Wahkiakum Chamber of Commerce & Visitors Center expired last year. As a result, the chamber/visitors center has returned to part-time operations.

County government officials, who are facing severe budget problems of their own, are seeking to hand over operations of the county-funded Wahkiakum Family Practice Clinic, the area’s sole health-care provider and a long-time mainstay in Cathlamet, to a private Cowlitz County, Wash., medical provider that operates health centers in Longview and two small Washington communities.

The proposed transfer of the medical facility has drawn strong opposition from local officials such as Goodroe and Cathlamet Mayor Richard Swart, both of whom favor retaining local operation of the center to ensure that it continues to provide care to all local residents, not just the indigent, as they fear might happen with a change in ownership.

“I think the county is at its wit’s end” because of its financial predicament, said Swart, who is a former Astoria resident. “But I am interested in what the [proposed operator’s] philosophy is and how they will serve the community.”

Local marina still bustling

If there is one bright spot in Cathlamet’s otherwise gloomy economy, it’s the Elochoman Slough Marina, operated by the Wahkiakum Port District No. 1.

Port Manager Jackie Lea said the marina’s 250 slips remain filled to capacity with recreational boats. In fact, there’s a waiting list for any vacancy, she said.

“Boating seems as strong as it ever was,” Lea said. “It doesn’t seem to have been as affected by the recession.”

The Port recently completed replacement of a 30 year-old dock with a state-of-the-art dock that can accommodate 16 boats.

While revenues from the moorage sustain the marina’s budget, Lea said there has been a drop in overnight rentals at the adjacent 15-vehicle RV park, where revenues are down about 50 percent.

In March, the Port added two more pre-fabricated cabins for overnight use, bringing to five the number of cabins available to the public.

Because of their popularity, Lea said Port commissioners have begun discussions about adding more cabins.

Help for businesses

According to Goodroe, the economic hard times underscore the need for local businesses to collaborate with one another to better facilitate everyone’s success.

For that reason Goodroe recently developed a needs’ assessment study for some 160 businesses that are based in Wahkiakum County, with the goal of producing a resource guide for every business.

In addition, the EDC recently sponsored a business fair for area businesses. The one-day event, produced by John E. Anderson and Kate Packard of Be Cause Business Resources Inc., included several outside experts who provided professional advice on ways to better operate small businesses. Attendees then formed small groups to brainstorm issues specifically facing their businesses and community.

Goodroe said one goal of the business fair is to encourage the formation of “entrepreneurship clubs,” in which small groups of business owners regularly communicate and work with each other.

He said better communication and a spirit of helping one another are the real keys to getting Rural America out of this recession.

Along those lines, Goodroe is seeking possible grant funding to build a 5,000 sq. ft. business park on a parcel of land that formerly housed a log-sorting facility on the outskirts of town.

Goodroe said the $1 million to $1.5 million facility would serve up to five start-up light industrial businesses and would include a business training center.

Businesses form cooperative

One example of cooperation among business owners can be found at Howies Corner Old & New, where owners Mark and Debra Howie recently formed a cooperative with three other local entrepreneurs.

Cynthia Montgomery, one of the co-op’s members, said each member shares working hours at the shop and helps select the inventory.

Before forming the cooperative, Montgomery said the shop was only open several days a week, since the Howies currently live in Seattle. Now, the store, which features new and vintage furniture, housewares and nautical items, is open six days a week.

“Their goal was to bring some life back to Cathlamet,” said Montgomery, who operated a clothing shop and tanning business before the recession hit.

Optimistic about future

Despite the current setbacks, optimism isn’t hard to find among Cathlamet officials.

Jennifer Hanigan, a local attorney and president of the Wahkiakum Chamber of Commerce, said she has been impressed by the resiliency of Cathlamet’s business owners and residents.

“There’s a real positive feeling that we will ride out of this recession,” Hanigan said.

She noted that even as the chamber and visitors center has been forced to reduce services, business owners and others have stepped in to offer their help.

“We’ve got a great group of merchants and business owners who continue to volunteer their time and donate to our events,” Hanigan said.