July 2020 Volume 19 | Issue 7
PPP loans a ‘lifeline’ to Tri-City businesses By Wendy Culverwell editor@tcjournal.biz
Tourism
Right on schedule, food follows wine at Kennewick’s Columbia Gardens Page A23
Local News
Kennewick health-focused meal delivery service redefines midday lunch run Page A33
Real Estate & Construction
2 new businesses plus bakery expansion pause opening plans Page B1
NOTEWORTHY “Balancing keeping our teams safe and healthy and trying to maintain some level of ‘business as usual’ is an opportunity for leaders to stretch and think outside the box.” - Rebekah Dobbs, STCU Page A15
As Tri-City business and civic leaders work to tame local Covid-19 infection rates so more businesses can open, some of the Mid-Columbia’ biggest employers say forgivable paycheck loans were a “lifeline” that helped them keep valuable employees. Benton and Read about how PPP Franklin counapplications pushed ties moved into lenders to their limits. a modified verPage A11 sion of Phase 1 of Washington’s Safe Start economic recovery program in early July, the same time the U.S. Small Business Administration released the names of the millions of U.S. companies that received Paycheck Protection Program (PPP) loans through the federal Coronavirus Aid, Relief, and Economic Security, or CARES Act. Economic recovery and the millions of dollars in PPP loans that flowed to the Tri-Cities are connected. For businesses to revive, they need to be in business. Employers who received PPP loans say that’s just what happened. “To have that government support was a relief. It reduced the stress,” said Chris Senske, owner of Senske Lawn & Tree Care Inc., a Kennewick-based landscaping firm with branches in Washington, Idaho and Utah. Senske received between $2 million and $5 million – the SBA gives ranges rather than exact amounts. It was one of nearly 500 Tri-Cities companies that received $150,000 or more. Another 2,200 received up to $150,000. Senske said the company used about 83% of its PPP loan for salaries and the balance for other allowed expenses such as rent. The money helped it manage the growing balance in its accounts receivable as customers fell arears on bills and the company stopped sending out reminders. “We had a lot of employees were potentially at risk for their jobs,” he said. It used the PPP money to keep all its 472 employees, including bringing back people who were laid off in the beginning of the pandemic. It plans to apply to have the loan forgiven. The Tri-City economy is far from recovered. A modified version of Phase 1 is still uPHASE 1, Page A7
Photo by Wendy Culverwell Jr. Gonzalez, left, and Chris Curtis of Help-U-Move remove furniture from a Richland home in preparation for new flooring.
Covid-19 is making Mid-Columbia’s tight housing market tighter By Wendy Culverwell editor@tcjournal.biz
Tri-City home sales are defying the expectations of a stressed economy. But real estate insiders aren’t surprised. A tight inventory of homes for sale coupled with unprecedented low mortgage interest rates and an unemployment rate that’s lower than the rest of the state is keeping the market moving. The first five months of 2020 saw strong sales and rising prices, flying in the face of expectations for an economy chilled by the coronavirus pandemic, according to June statistics released by the Tri-Cities Association of Realtors. Nationally, sales of existing homes fell by 10% in May, according to the National Association of Realtors But its regional affiliate, which represents
more than 1,100 licensed Realtors in the MidColumbia, sees a different picture. It tracked 2,125 closings for the year through June. That’s more than the snow-slowed starts to the 2017 and 2019 selling seasons but fewer than 2018, when snow wasn’t an issue. The rosy figures are echoed by local insiders who work with buyers and sellers every day. Realtors, mortgage brokers, appraisers, moving companies and inspectors report they’re as busy as ever. Home sales slowed briefly in March, when Washington Gov. Jay Inslee issued the Stay Home, Stay Healthy order to curtail the spread of the virus that causes the deadly Covid-19. The Federal Reserve slashed interest rates to prop up the economy. Thirty-year mortgage loans can be had for a record-low 3.5% or better. It’s helping turbocharge a market that has uHOUSING MARKET, Page A4
Necessity is the mother of invention for Tri-City innovators By Wendy Culverwell editor@tcjournal.biz
Great disruptions can bring great opportunities. For Derrick Stricker, a Tri-City commercial real estate broker, working during the Great Recession in Chicago drove that idea home. Now, a decade older and working in the Mid-Columbia, he’s one of the many local entrepreneurs who see new opportunity in the Covid-19 pandemic. Or rather, an old one. Stricker organized a team to create DaVista Drive-In Theater and Event Center, a social distancing-friendly concept that could be installed at the former Vista Field municipal airport east of Columbia Center in the heart of Kennewick.
“It came to fruition on my white board in my war room,” he said, referring to his home office. Stricker’s drive-in is just one of many new businesses emerging from the Covid-19 chaos. Goose Ridge Winery is making sanitizer through its grape-based vodka distillery. A Richland logo business is distributing face masks. A small restaurant chain launched its own delivery service to compete with out-of-state apps. It’s welcome news, said Karl Dye, president of the Tri-City Development Council, the region’s economic development agency. Placemaking supports development and makes the Tri-Cities attractive to talent. “We need the amenity-based communi-
uINNOVATORS, Page A10
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