Schoesler: Using tools correctly is key concept

A total of $7.5 million from the state of Washington to pay for infrastructure for a Darigold plant in Pasco is an example of a public sector incentive for business that’s working.

The taxes the state of Washington will receive from the construction of the $600 million plant will exceed the expense for utilities such as water, sewer and electricity, said Washington state Sen. Mark Schoesler, R-Ritzville.

“Before it ever runs, we’re in the black,” said Schoesler, who spoke Wednesday at an annual meeting of Valley Vision at Lewiston’s Hells Canyon Grand Hotel attended by more than 100 community leaders.

Valley Vision is a not-for-profit group that uses private and public money to attract and retain manufacturers and other employers in Asotin and Nez Perce counties.

The states of Washington and Idaho that Valley Vision serves, Schoesler said, have different economic development tools.

The key, he said, is to use the tools and not to lose them, very similar to how he treated the first full set of drill bits he bought when he had just taken on more responsibilities on his family’s farm.

In the case of the Darigold plant that’s getting close to opening, the relatively small government investment is providing benefits that go beyond increases in tax revenue, Schoesler said.

The plant will employ about 200 people and have the capacity to produce 175 million pounds of butter annually as well as 280 million pounds of powdered milk, according to a news release from Darigold.

Other businesses such as dairies and cold storage facilities will be locating near it to support its operations, Schoesler said.

The strategy used for the Darigold plant is just one of many approaches that can be successful in helping business thrive, he said.

At the Pullman-Moscow Regional Airport, cooperation among numerous groups succeeded in landing tens of millions of dollars to replace the facility’s runway and build a new terminal, he said.

Those upgrades involved alignment among many including Republicans and Democrats, officials in Idaho and Washington, Washington State University, the University of Idaho and the private sector, he said.

“We’ve seen what happens when we have good relationships,” Schoesler said.

In other instances, he said, success involves working to make sure rules are applied fairly.

That was the case at a dealers’ auto auction in the Spokane area where he backed a change so the business coordinating the sale was assessed a Washington State business and occupation tax based on commissions, which could be in the neighborhood of $500 per car, instead of the vehicle prices, which might be as much as $30,000.

The change made sense, Schoesler said, because it was a “really great” business with 250 to 300 jobs that every dealer in the region used to buy and sell inventory.

Williams may be contacted at william@lmtribune.com or (208) 848-2261.