An increased tax base and good-paying jobs are two reasons for supporting HP Inc.’s proposed expansion in Vancouver. But for the city’s residents, the most appealing benefits might be infrastructure improvements that would accompany the project.
HP, a global printer and PC manufacturer, is preparing to bolster its investment in the region. The company, which landed in Vancouver in 1979 when Hewlett-Packard set down roots, is considering building a facility at what previously was the English Pit mining operation. The area is along the northern edge of Southeast First Street and west of 192nd Avenue in east Vancouver.
There, city officials have long been trying to develop office space and light industry on the 553-acre site, known as Section 30. HP proposes to purchase about 68 acres, with the first phase of development eventually taking up about 28 acres. The company, which is based in Palo Alto, Calif., and has numerous satellite operations, would have plenty of room to grow. There also would be space for other employers at the site.
HP currently leases space at the Columbia Tech Center in east Vancouver and employs about 1,100 people in the area, including 400 full-time contractors. “We are fortunate that HP, which has had a significant presence in Vancouver for almost 40 years, wants to stay and grow right here in our community,” Vancouver Mayor Anne McEnerny-Ogle said in a press release.
There are clear benefits to a major company investing in the region. There also are questions that must be answered as city officials consider the proposal, which has been in the works for about a year.
One involves a potential reduction in transportation impact fees for the company. Another would be a five-year waiver of the city’s per-employee annual fee to a business that relocates at least 700 employees and meets certain salary thresholds. The Vancouver City Council in recent years has tied tax breaks to salary thresholds for relocating corporations, a reasonable prerequisite that ensures such breaks are going to companies that boost the economy rather than, say, a convenience store.
Chad Eiken, Vancouver’s economic development director, said the city’s investment would be about $10 million. In comparison, taxpayers contributed about $70 million toward The Waterfront Vancouver development. Eiken said the city would recoup that investment through additional tax revenue in about 20 years — or fewer if additional employers joined HP at the new site.
While all of that sounds like a win-win for HP and Vancouver residents, the most important part of any eventual plan might be infrastructure improvements along Southeast First Street. The road, built when the area was rural, remains a two-lane street that is ill-equipped to handle modern traffic. “It will take some time to get the infrastructure in place,” Eiken said. “That’s one of the reasons why Section 30 hasn’t developed sooner — there’s really no street network, there’s no water, sewer, storm infrastructure.”
Those improvements are needed whether or not HP purchases the English Pit site. With nearby development including a shopping center anchored by The Home Depot and another anchored by Costco, the area has outgrown the access provided by one of its major arterials.
The Vancouver City Council has undertaken discussions regarding the HP proposal, and a public hearing is scheduled for Dec. 16. While citizens likely will raise concerns that we have not considered, for now HP’s investment in the region sounds like cause to celebrate.
