Politicians forecast lean times

SCOTT WYLAND, THE OLYMPIAN

LACEY -- A slower economy. Tighter budgets. A proposed $80 million jail.

These were among the topics three mayors and a Thurston County commissioner discussed Wednesday as they gave overviews of their communities.

Most agreed that 2001 was a tough year for South Sound and that new concerns are ahead.

"Thurston County has had its challenges, but I think we are up to these challenges," Commissioner Cathy Wolfe said. "We consider these challenges opportunities."

The officials spoke to about 240 people gathered at Saint Martin's College for the forum, which was sponsored by the Olympia Thurston Chamber of Commerce.

Last year, Olympia felt the effects of an earthquake, a cooling economy and the Sept. 11 attacks, Olympia Mayor Stan Biles said. "But we were resilient in 2001. We finished the year with more unity than I've seen in my lifetime," he said.

Sales tax revenue within the city showed a marked decline, Biles said.

In 1999, this revenue surpassed the previous year by 11.7 percent, Biles said. 2000 revenue outpaced that of 1999 by 7.3 percent, he said.

But revenue in 2001 grew by an anemic 1.2 percent Biles said.

The suicide hijackings hurt the airline industry, which led to fewer travelers visiting Olympia, Biles said, noting that revenue from the city's lodging taxes dropped 30 percent.

Meanwhile, Spokane developer Dave Brubaker will present plans for a conference center and hotel to the City Council on Feb. 26, Biles said.

And the city recently revamped downtown impact fees so that developers building there will pay as much as 50 percent less, Biles said.

Lacey

In Lacey, Wal-Mart has broken ground on its new store and Target Corp. is making progress on its distribution center, Lacey Mayor Graeme Sackrison said.

Still, the sluggish economy has prompted some developers to put large projects on hold or to proceed at a slower pace, Sackrison said.

At the same time, smaller projects have been percolating, he said, such as Olympic Crest Coffee Roasters converting a former Dairy Queen into an espresso bar with a drive-through.

"There are a lot of little things taking place, even though big projects might seemingly be moving slowly," Sackrison said.

Tumwater

Tumwater Mayor Ralph Osgood said the state of any community can't be measured by a single year.

"This is a long-term journey," Osgood said. "This is not a 100-yard dash."

After about seven years of planning, the sprawling Tumwater Town Center is ready to be developed, Osgood said.

Osgood put public transportation high on his list of priorities. A city's core needs transportation alternatives to thrive, he said.

Tumwater also plans to weigh in on the proposed regional jail, he said.

A team of local officials has recommended building the jail to ease crowding in the existing county jail.

The jail proposal is one of many things the county must tackle while it faces a $2.5 million to $4 million deficit, Wolfe said.

"I don't ever want to build another jail in my lifetime," Wolfe said.

The county plans to snip its $53 million budget by whatever amount it takes to balance the books at the end of 2002, Wolfe said. It has already implemented a hiring freeze.

"Make no mistake, there will be cuts in service," she said. "There will be no way around it."

South Sound leaders address pressing concerns at forum

For related stories go to the Business section.

At a glance

- Olympia: Proved resilient in troublesome year.

- Lacey: Some big projects have stalled while others race ahead.

- Tumwater: Ready to develop 22-acre Town Center.

- Thurston County: Expects as much as $4 million budget shortfall.

The Olympian Copyright 2002

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