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Colville confederated tribes purchase Omak mill |
Artifact Replicas|Jewelry|Clothing|Figurines|Art Prints|On Sale|CloseoutsWhat's NewColville confederated tribes purchase Omak millAUTHOR: Rob McDonald The Colville tribes completed a deal this week to purchase a veneer and lumber mill in Omak that closed 18 months ago. The reopening of the mill is expected to be a big boost to the Okanogan County economy, which is in dire straights. Colville Indian Power and Veneer will bring between 70 and 120 jobs to Okanogan County, said Terry Knapton, chief operating officer of the Colville Tribal Enterprise Corp. The 9,000-member Confederated Colville Tribes is the second-largest tribe in the Pacific Northwest. The Colville's ventures make up between 35 percent and 40 percent of Okanogan county's economic base, said Commissioner Craig Vejraska. After nearly two years of gathering dust, the 81-year-old mill at Omak is humming again, this time under the guidance of the Colville Confederated Tribes. It will began full production of green veneer Monday, with one shift of 70 workers. Within six months, the mill hopes to go to two shifts and employ about 130 people. In a ceremony Friday, officials, workers and community leaders spoke about the Colville Indian Power and Veneer plant's prospects. The Colvilletribe paid $6 million for the 300-acre property, which was owned by Quality Veneer and Lumber Co. of Seattle. "It contains a large land base that we want to get back into the possession of the tribe," said Jeanne Jerred, vice chair of the tribe's governing body. The Confederated Colville Tribes also plan to sell electricity generated by burning wood waste at the mill. Electricity output would be about 15 megawatts, or enough to heat about 13,500 homes, according to tribal estimates. Quality Veneer and Lumber closed the mill after filing for Chapter 11 bankruptcy. The city of Omak will lose about $100,000.00 per year in property taxes, since the tribe is not required to pay property tax. But the move will stimulate the local economy by creating jobs. The tribe's first objective is to hire Native Americans, but it will also hire in the community if the positions can't be filled, Jerred said. Projected annual payroll is $2.1 million. The Colville Tribes are the third owner in four years. Before it was sold as part of a bankruptcy proceeding in 1998, the 80-year-old mill operated as Omak Wood Products, employing 400 people. Quality Veneer and Lumber reopened the mill with 250 employees, before filing for bankruptcy itself. The tribe has a much narrower business focus in mind for the mill. It plans to focus on veneer, instead of plywood or lumber. The veneer would be marketed to larger companies that produce plywood. The Colville tribe also operates Precision Pine near Omak, and it owns 900,000 acres of timberland. In the long term, the tribe will also look at developing other light-industrial uses on the 300 acres of mill property, Jerred said. About $3.4 million is targeted for cleanup of the property and purchase of new equipment. Restoration of Omak Creek is a key priority of the tribe. The creek is a tributary of the Okanogan River that supports anadromous fish runs. The mill site "surrounds a watershed that we have been rehabilitating for years," Jerred said. "We feel the tribe is the best steward to gain back what we've lost." 
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