The Clallam Economic Development Council requested funding be reallocated toward improving industries and creating high-wage jobs in the wake of McKinley Paper mill layoffs.

The Economic Development Council (EDC) asked that the Clallam County Commissioners’ strategy development grant be approved for the EDC’s partnerships with the Center for Sustainable Infrastructure (CSI) and Roy Street Group.

Both of the consulting companies already were working with the EDC before the McKinley layoffs.

After the layoffs, EDC Executive Director Colleen McAleer said the work it was doing “just became more critical.”

These companies will work on forest product manufacture recruitment, mass timber cluster development, industrial symbiosis, forest fiber and residual inventory, local wood economy and West End grant projects.

Clallam County originally had dedicated about $200,000 of its strategy development grant to the EDC for economic analysis. The EDC spent $50,000 on other projects and intended $150,000 be used for the two consulting companies.

However, the wording of the allocation did not allow that. On July 15, the EDC asked the county commissioners for an addendum that would make the funding available for the consulting companies.

Jointly, the expenses for the consulting groups total about $181,000.

The three commissioners indicated they would look for other sources to make up the rest of the funding.

The EDC expects the companies’ consulting work to support the economy in the wake of the McKinley Paper mill layoffs, which are expected Aug. 25.

When the EDC first learned about the layoffs, McAleer said there were two paths to pursue. First, it tried to find McKinley loans so it didn’t have to close. But McAleer said McKinley wasn’t closing due to lack of funding. The problem was that the mill wasn’t making enough money.

That was compounded by the fact that profitable paper companies operate both paper mills and box plants – they’re vertically integrated, she said.

That’s not the case with McKinley.

McAleer said the only way to keep the mill alive would be if McKinley acquired box plants.

It is currently building a box plant in Texas, McAleer said, but construction is taking longer than anticipated. When that plant is finished, McAleer said McKinley might re-open the Port Angeles mill.

The second path the EDC considered was replacing the high-wage industrial jobs that were lost from McKinley.

“That’s the path we’re leaning into in a big way,” McAleer said.

McAleer said union mill employees want skilled comparable jobs to replace the jobs they are leaving.

Commissioner Mike French said creating good industrial jobs “needs to be priority one for every elected official right now.”

The EDC’s work won’t be an instant response to the crisis McKinley workers are facing, McAleer said.

“The timing is not such that we’ll be able to create jobs for them before Aug. 24,” McAleer said.

Instead, the EDC is focused on improving the number of available industrial jobs in the long term.

The commissioners were scheduled to consider approving an addendum July 23, allowing that funding to be used for the consulting companies.

EDC officials say they hope the companies will complete its business development objectives and a public report by the end of the year.