Sept. 23 Daily News editorial

Kelso’s economic future is looking brighter, thanks to this month’s agreement between the state and a Tukwila, Wash., developer on redesign plans for the Interstate 5/State Route 432 interchange at Exit 36.

The newly inked plan for the $45 million Longview Wye project paves the way for the commercial development of property near the interchange. That would deliver a boost to Kelso’s tax base and overall economy. Development of the 100-acre parcel also would greatly enhance the primary gateway to Longview.

The developer, Segale Properties, isn’t saying exactly what will be built on the land. A Washington Department of Transportation official indicated to Daily News reporter Amy M.E. Fischer that Segale might want to keep its options open to build whatever the market dictates. “We don’t know what they’re going to build, but they’ve asked to reserve the right to build almost anything, Bart Gernhart told Fischer. “Our opinion is that’s between them and the city.”

As early as 2007, Segale wanted to put a couple of “big-box” stores, a gas station and other smaller stores on the property. But the developer’s vision wasn’t compatible with a Longview Wye redesign plan transportation officials had been working on for almost a decade. The WSDOT’s plan was designed to handle around 10,000 vehicle trips a day. A retail center at the interchange could be expected to general double that number of vehicle trips.

Segale put a consultant to work looking at ways the redesign plan might be altered to allow for a larger volume of traffic. The consultant DOT engineers then began lengthy talks on possible changes — talks that led to this month’s agreement. Gernhart told Fischer that the agreement took some time to reach because it’s very complex. It includes Segale selling some of its property to the state and the state trading easements with Segale in order to install utilities and to allow Segale to build an access driveway. Segale agreed to pay all additional construction costs, which will be between $1 million and $2 million.

Clearly, Segale is determined to develop this property to its full commercial potential. And the time and money Segale has been willing to commit to secure this agreement says a great deal about how the developer views that potential. It’s all good news for this area, which still waits to rebound from the recession.

The redesign of the Longview Wye and subsequent commercial development at the interchange look to be well-timed to assist what is expected to be a slow recovery. The state is putting the Wye redesign project out for bids at the end of the month. WSDOT officials have indicated they might have access to Segale’s development open by November of 2010.

There’s no downside to Segale’s plans. For Kelso, commercial development of this land will likely mean tens of thousands of dollars additional tax revenues flowing into city coffers. That will help Kelso citizens pay for schools and many other services. It will mean a more attractive and enticing gateway to both Longview and Kelso — drawing more visitors to the community, producing more economic activity.