Blaine hopes to continue rebound with reopened border, but these rules still hurt
With the U.S. border now welcoming COVID-vaccinated Canadian visitors, Blaine and other border communities are trying to figure out when they might get back to some semblance of a pre-pandemic economy.
The shutdown of the border for nonessential travelers into Whatcom County between March 2020 and Monday, Nov. 8, hurt Blaine’s economy at a time when the community was blossoming with new business activity, particularly in the downtown district.
One measure of how big a hit Blaine’s economy took is through tax revenue. Retail sales tax revenue was down 24%, while gas tax revenue was down 80%, said Blaine Mayor Bonnie Onyon. The city’s general fund was down $750,000, which is a big deal for a community that has almost 6,000 people. The city’s preliminary budget for the general fund in 2022 is $7.56 million.
While the city was able to avoid employee layoffs, it did have to cut all departments during the pandemic, said Blaine City Manager Michael Jones. That included leaving vacant positions unfilled and doing less upkeep with city parks and streets. They’ve also received federal help, including The American Rescue Plan Act, which is helping as the community continues to recover.
Given the unprecedented nature of having the border closed to nonessential travelers for 20 months, Jones admits that putting together a city budget forecast for the coming year is difficult. The budget he recently proposed to the Blaine City Council for approval predicts a 5% increase in revenue compared to 2021, which would be double a typical forecast but takes into account some recovery from the first stages of the pandemic.
That recovery could be stunted, however, if early border numbers are an indication. Despite the media attention around the border reopening, Western Washington University’s Border Policy Research Institute counted only 2,598 southbound personal vehicles at the Pacific Highway and Peace Arch border crossings in Blaine on Monday, Nov. 8. That’s less than a third of the total compared to the second Monday of November in 2019.
The hassle and cost for Canadians to get tested within 72 hours before reentering Canada appears to be a big factor. U.S. Customs and Border Patrol spokesperson Jason Given said that they don’t expect to see large increases in border traffic until that testing requirement is lifted.
Another challenge for Canadians is traveling with unvaccinated children, said Laurie Trautman, director at Western’s border institute. While unvaccinated children can come into the U.S. if they don’t have the virus, they would need to stay out of crowded settings for 14 days after returning home.
“This means no daycare or school for two weeks. Not that many families can accommodate that,” Trautman said.
With the current border crossing rules, both Jones and Onyon expect recovery to take time. Jones noted that it took a long time for Blaine to recover after the Sept. 11 terrorist attacks 20 years ago closed the border for just one day.
While a long recovery is expected, at least things are finally headed in the right direction, Onyon said.
“We are certain the opening of the border will make next year better than this year, both financially and on the equally important human level,” Onyon said.
Economic rebound stalled
Before the pandemic Blaine was on a roll in terms of economic activity. Previously known for its bars, gas stations and mail box service businesses, by 2018 developers discovered Blaine as one of the few places left in Washington that had plenty of undeveloped waterfront views.
The downtown district was in the process of being remade, with Peace Portal Drive getting new buildings that were being filled by restaurants, cafes and retail stores. To the east, several huge housing projects were getting underway or in the planning stages, with hundreds more housing units expected to be built near H Street Road.
For the most part the new businesses that arrived prior to the pandemic — including Drayton Harbor Oyster Company, Starbucks, Black Forest Steakhouse, The Vault wine bar and bistro and Living Pantry — have made it through the pandemic to see the border reopen. The next step is whether enough of Canadian visitors will cross the border to continue helping an economy that was just starting to pick up steam before COVID-19 arrived.
“I think it will start as a trickle, with no big influx as long as testing remains in place,” Onyon said.
