BUSINESS INVESTMENT TRENDS

As you can see, attracting the right kinds of business to grow in our Valley is at the heart of our programming. And we know that, like anyplace, Silver Valley offers more advantages for some business sectors than others.

Recently, we completed a strategic economic development plan for the lower (west) Silver Valley. Specific industries were targeted for recruitment, based on our regional strengths, goals and values. Those companies that fit well here will be assured that the qualities which brought them in the first place will continue to be protected and enhanced.

All of our towns and county have endorsed the "Peak and Valley" plan and are actively helping to make it a reality.

Here is a glimpse at some of our key business recruitment targets:

Recreation...

Years ago, ski resort experts analyzed Silver Mountain's slopes and declared them potentially better than Aspen's. That conclusion led to massive development of our facilities, including construction of the longest gondola system in the world. Silver Mountain is now poised to become a true destination resort and the core of a recreation complex of national stature.

The top five physical activities in the U.S. today are exercise, hiking, outdoor adventures, participation in water sports and snow skiing. We have four of the five and water sports are available in abundance just forty minutes away. This region is becoming known as Silver Country, the largest complex of recreation trails in the world. With Silver Mountain at its core, we are coming of age as a recreation Mecca.

"We are excited about Silver Mountain. We all have a very good future ahead of us if we're willing to take the risks to develop that future..."

Jerry Andres, President, Eagle Crest
Owner of Silver Mountain Resort

Hospitality...

There are three main markets for our growing hospitality industry. The first is the traveling public along Interstate 90. With nearly four million people passing through each year, we have a built-in, steady market in this segment.

The second is composed of destination visitors. This is a small but growing group devoted to the kinds of outdoor recreation we have to offer. Silver Mountain's commitment to creation of a four season destination resort insures that this segment will continue growing dramatically over the next decade.

The third market is commercial business. People in this segment are important to us. They stay longer, come often and spend more than most other travelers. We are devoted to expanding this segment through our business development programs. The Silver Valley Business Center, which is expected to be under construction in 1999, will be a great stimulus toward this end.

Industry...

Mining monopolized our economic history for a century. We've learned that diversification is essential to our future well-being. Light manufacturing ( particularly oriented toward outdoor recreation), telecommunications, distribution and environmental remediation all are well suited for this area. Our federal, state and regional partners are strongly focused supporting our efforts to recruit and grow businesses in these sector.

Retail...

Retail spending in Silver Valley demonstrates that we have turned the corner in our economic recovery from loss of mining. In the past two years, revenues here have increased 9.4% and 14%, respectively. Retail employment grew nearly 10% over the same two year period.

As our recreation industry continues to grow, retailing should benefit correspondingly. Convenience, specialty and theme goods should be particularly good targets for expansion.

Housing...

For decades, Silver Valley has been a major source of affordable housing in the Idaho Panhandle. Many people working in the Coeur d'Alene area have chosen to live here and commute. Recently, however, housing prices have begun to increase as Silver Mountain skiers have bought second homes in the Valley.

The City of Kellogg has responded by zoning several large parcels of land for residential development. Over the next several years, we expect to see growth in condominiums, apartments and affordable single family homes. Reasonable land values and competitive construction costs make these expectations reasonable.