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The Bconomic Benefit of Pleasant Harbor Marina and Golf Resort
Obiective of Studv
The following study has been completed to show the number ofjobs that earn 80% or less
than the Brinnon average median income, that will be created as a direct and indirect result of
the MPR
Economic Bnckground - Brinnon
Information from the 2000 US census bureau has been used in the following assessment; in
addition to the town of Brinnon's 2005 estimations. All dollars are presented to a consistent
2008$. Actual inflation amounts for the region were used for all years other than 2008, where
the US core inflation projection was used. (As projected to be higher than Brinnon / Jeflerson
County).
Male median annual income = 3378.36 (2008$)
Female median annual income = 17836.03 (2008$)
Total working population of 265, 108 (40.8%) are female, and 157 are male (59.2)
Current annual median income is=$27282.29,and 80% of the current annual median
income is $21825.83 (hourly wage of $10.49)
Summarv of Findineso No Full Time Equivalent positions will be directly created that fall below 80% of the
current median income in Brinnon. (Note Appendix A: if a wage is reflected as lower
than this amounl, it does not account for tipping / gratuitiesl).
o The direct average income has been calculated to be $26,858. The indirect and
induced positions have been calculated to have a slightly lower average income of
$23,498, however, this is still above the 80% mark.
o Of all of the positions created, 25o/o of the induced positions will pay below the above
mark, this accounts for a totalof l7 positions.
:t**'<11 shsuld be noted that these l7 prirnarily retail based positions may only be required on a
seasonal and/or PT basis, and therefore may utilize the population under the age of 2l.
Standards of Data
The wage structure has been constructed with the use of the median to the 75th percentile of
wages in the state of Washington, as provided by 'workforce explorer'2 and the Washington
State Employment Security Department. At the time of analysis, the dollar values are accurate
for 2008, inflation will be factored in on an annual basis during the build out process.
I PT positions, geared towards local students have been removed from lhe overall number. This increase will
lead to a direct increase in median household income as lhese positions are geared towards entry level workers
(students aged l6-21).
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Economic and Employment Impacts of a Resort Community (RC)
- An Overview
An RC stimulates new economic and ernployment activity in a given region as it attracts
new spending by in-nrigrants and visitors fiom other regions. Vacationers & owners
receive income from outside the region, the spending flows through the regional
economy as purchases of goods and services from fimrs and individuals located rvithin
the region. The infusion of external funds into the local econonry is a fomr of exports.
Thus, an economic base model can be used to quantify the impacts of a RC on a local
economy (Haas and Serow; Sastty).3
Economic impacts of an RC can be calculated by measuring the flow of payments for
goods and serices through the regional economy. The flows of payrrents for private and
public goods and services generate irrcome and employnent for the region's residents.
This income and employnrent creates a ripple effect through the regional economy when
the inconre is spent in turn, on other private and public goods and services. Thus, the
economic impacts are rnultiplied by additional rounds of spending. (Spending and taxes
which flow outside of the region have not been counted when measuring the local
economic impacts of the RC).
Past studies conducted by Reed and Glasgow; Haas and Serow; Reeder et al., on the
impacts of in-nrigrating focus attention on lesulting employment opporlunities, both the
quantity and quality of newly created jobs. Many studies claim that rnost of the jobs are
for retail and service-related activities that tend to pay lower wages. Any rural
development strategy dependent on spending by households, such as recreation and
tourism, is subject to this criticism (Hoppe). In fact, household spending by residents of
an RC generates a wide range of employment opportunities, fiorn low to high paying jobs
(Sastry). The problern facing marly rural regions is the inability to capturc nlany of the
households expenditures, because of their lirnited economic base. (Hoppe; Reeder et al.).4
The inability to attract new businesses (and the type of businesses attracted) rvill be a
major detemrinant in the economic impact of an RC over tirne. With the time currently
allocated to building this RC, the County of Jefferson should prepare to better cater to the
new cousutnption bundle that will be in demand. Such seruices include additional
housing, and maintenance, healthcare services, retail and commercial property, and
management. Low scale industrial seryices may also prove to eventually be in demand irr
this region.
It should be noted that an RC brings with it larye disposable incorne spenders, their pay
comes frorn out-of-county soLlrces, and such payments represent new dollars within the
local economy. New dollals, when spent support local serrrice businesses and result in
additional local spending, employrnent, and income.
3 Haas, W.H., and W.J Serow. The influence of Retirement In-Migration on Local Ecouomic Developnrcnt
Sastry, M.L. "Estimatirrg the Economic Impacts of Migration: An Input-Output Analysis.) Grorvth and
Change
n Hoppe, R.A. The Role of the Elderly's Incorrre in Rural Developnreut. Economic Research Services, U.S
Departnrent of Agriculture. Washirrgton DC, January l99l
Direct Economic Impacts on / Brinnon and Surroudins Area
Appendix A shows the ernployrrent structure. With an internal operational amual salary
base of $5.5million, with the rnajority of Full Time Equivalents living on site.
Total economic irnpacts are the sum of direct, indirect and induced impacts. Using
IMPLAN, the indirect and induced economic / employnent inrpacts werc estimated to be
66 jobs and income, with an average income of $25,366. The low average income per job
reflects the high portion of lower paying retail sales jobs. Adding indirect and induced
impacts to direct impacts, the total economic irnpact of Peasant Harbor on Jefferson
County upon completion is estirnated to be 287 FTE jobs and $7 in income amually, with
an average incorne of $25,366. Clearly the total economic irnpact of Pleasant Harbor
Resort on Jefferson County plus the surounding area, were considerably larger than on
just the sunounding community.
Concluding Remarks
The average wage of all workers; direct, indirect and induced is above 80% of the current
median wage in Brinnon. None of the direct positions that have been created fall below
this line.
The indirect and induced count below this cut off represents a total of 25% of the newly
created positions in this sector, which equates to 17 positions, of most will be part tirne
employees / students.
Endnotes
l. An input-Ouput model is an economic base model thal meastrre economic inpacts based on the
florv of purchases and sales rvithin a given region. Input-Output models are the most frequently
used analyical fi'anrework for economic impact analysis (Miller and Blair; Shaffer; Wagner et al).
Econonric in:pacts cau be divided into : l)direct - payments received by producers for providing
goods and service, 2) indirect - expenditures on factors ofproductiort requited to produce goods
and services, aud 3) induced - income received by individuals duriug the direct aud indirect
impacls and, in hrrn, spend ou other goods and services. Total economics are the sum of these
direct, indirect, and induced irnpacts.
2. Tlrc standard formutation of an input-ouput model for n sectors is:
X= LLi =,SAXi = S(/- A\t LF, (l)
Where X is a rr.r/ vector of gross output, (t - A) is a lxrr matrix of rnultipliers which reflect a
region's production teclurotogies, and F is a nxl vector of final demand. Assuming constant rehrrns to scale
and fixed prices, it is possible to calculate employment aud income impacts using income and employment
coeflicients which map a linear correspondence to sectol"l gross output:
LY, = WSLX t = WS(l - A) LF, (3)
and
A,L,=SAX, =S(f -,e['44 (4)
where Y and L are rrrl vectorr of sectoral income and employnrent, respectively, W is a run diagonal
rnatrix of sectoral inconre-outcome (i.e. wage) coefficierrts, and S is a rrxn n:atrix of secotoral eruployment-
output (i.e., labor) coefficients. Direct economic impacts can be measured either by introducing wages plus
nou wage expenditures directly to the appropriate sectors to calculate changes in Y and L, or by directly
obtaining rvage and employnent impacts into the input-output model so tlrat spending can be calculated.
The U.S Forest Service's IMPLAN input-ontput nrodel rvas used for lhe econonic inrpact aualysis. Tlris
analysis rvas couducted usiug the outlined premise of case studies that have been conrpleted by implant in
past years. The economic priuciples follorved mimic those of prcvions sludies, rvith siruilar build outs and
populalion density. It shotrld be noted that data on Jefferson County rvas nol used exclusively, as
limitations ou data, socioeconomic makeup and labor pool could not be found to be accurate, as many of
the seasonal enrployees rvill not be from this regiou. The intplementation of an RC rvith a large operatioual
base rvill more than likely see larger long ternr effects than those described above, n:ajolity of rvhich rvill
be in higher paying classifications. The IMPLAN model follorvs the assumptions and nolalions disclssed
and presented above. IMPLAN's database consists of a socioecononric database disaggregated to the
county level, ufiich allorvs the nrodeling of detailed inter-sectorial production and household consumption
lelationships. This aualysis used the IMPLAN pro, version 2, wltich is based on socioeconor:ric data from
2001 and2006.
3. Note that full time equivalent jobs and enployed persous are not perfectly con'rparable
Item Total Expenditures
Spent in Jefferson
County lncome lmpact
Employment
lmpact
Average lncome
per Job
Wages (PH)5,528,772 4,609,847 4,609,847 143 $32,236.69
Non Wases (PH)13,687,500 5,472,691 792,470 35 23642
Table 1 Direct Economic lmpacts of Pleasant Harbor Resort and Marina on Jefferson County Post Construction
Table 2 Total Economic Impacts of Pleasant Harbor Resort and Marina on Jefferson County Post Construction
Wages (Contracted)1,318,593 57 23.325
Non Waqes (Contrac 6,985 N/A N/A
Total 7,963,M2 287 25,366
an average of $75 / person / day additional expenditures (at a low projection of average 500 I day) = $13,687,500
Employment numbers have been seasonally adjusted, and are a representation of Full Time Equivatent positions
*Contracted employees include those that will be tending to the water treatment plant, the spa (majority of which will not reside in the County)
Wages (Contracted)2,000,000 1.072.027 1,072,027 43 24698
Non Wages (Contrac 50,000 5,681 5,679 N/A N/A
Total 21,266,272 11,160,246 6,480,023 221 26,858.90
Item lncome lmpact
Employment
lmpact
Average lncome
per Job
Waqes (PH)5,670,111 186 30,445
Non Waqes (PH)974,738 M 22,328
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