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'We'll take anything.' Tiny Eastern WA city is scrambling after french fry factory closes


'We'll take anything.' Tiny Eastern WA city is scrambling after french fry factory closes

Workers at Kaffrins Coffee in Connell are organizing a toy drive to help families who lost their paychecks after the unexpected shutdown of the local french fry plant three weeks ago.

"A lot of families are going to be hurting," a worker said.

The Franklin County city of 5,500 is reeling after Lamb Weston Holdings decided to shut down its local potato processing plant, one of 17 facilities where it turns potatoes into fries for McDonald's and other customers.

The Eagle, Idaho, french fry giant closed its Connell facility and put 375 people out of work, including an estimated 150 who live in the city itself.

The plant stopped processing potatoes on Sept. 30, and Lamb Weston announced the news a day later.

The move follows ongoing legal and financial challenges that Lamb Weston blamed on people cutting back on eating at fast food restaurants and a voluntary product recall earlier this year.

Tom Werner, president and CEO, told analysts in an earnings call shortly after the announcement was made that ending production in Connell was "the right decision" for the company's long-term outlook.

Werner earned $7 million in the year that ended in June, down from $20.3 million in 2023 as his stock awards and incentive compensation fell, according to the company's filings with the Securities and Exchange Commission.

Before the shutdown, Lamb Weston processed 300 million pounds of potatoes a year in Connell, or 5% of the company's North American capacity. It was one of 17 North American facilities, which are heavily concentrated in the Mid-Columbia region.

Now, Connell is processing what its future looks like without its key employer, utility customer and taxpayer.

Ideally, another substantial manufacturer will step in, said Connell Mayor Lee Barrow.

"We'll take anything," he said, noting all the ingredients are in place to support another food processor, including the utilities, power, gas and even the extension of fiber internet. "We have a lot to offer."

Lamb Weston has given mixed signals about the future of its Gum Street plant, which it described as old, small and less efficient than other operations.

Options range from tearing it down to mothballing it. Lamb Weston has told local economic development officials it is still weighing its options, Randy Hayden, executive director of the Port of Pasco, said at a recent commission meeting.

The port is responsible for economic development in the Connell area and is taking a leading role in identifying industries that could fill the void.

One thing is certain, Hayden said.

Reusing the idled plant would be the fastest option. But economic development is measured in years, not days, weeks or months. Business prospects have to be recruited, deals inked and facilities built.

The port working to map out a development strategy that marries Connell's strengths with community desires.

It will apply for a $100,000 planning grant from the state Community Economic Revitalization Board. Even working at bureaucratic light speed, a consultant wouldn't be on board until next year.

"But maybe it can be a little quicker than it ordinarily would have been," observed Jean Ryckman, chair of the port's board of commissioners.

Connell is generally a thriving rural city, its fortunes bolstered by the Coyote Ridge Corrections center, part of the Washington state prison system. Residential development caters to prison workers and to Tri-Cities workers willing to commute.

Connell is about 35 miles north of Pasco with easy access via Highway 395.

Connell's growth is visible in the construction crews working behind Harvest Foods, aka Lep-Re-Kon Market. Its owners are investing nearly $4 million in a new, 21,000-square-foot building to replace its existing store on Columbia Avenue, Connell's main drag.

Workers already had placed several courses of cinder block to form the perimeter wall when the french fry plant closed.

Closer to Highway 395, Ace Hardware has completed a $1.5 million, 15,000-square-foot building, though it has not moved in.

The future hardware store is part of a larger collection of parcels the city is selling to promote retail development near its main entrance. Dollar General, already open, is part of the neighborhood.

Barrow, the mayor, said five lots are available to the west of the freeway and another 30 acres of industrial land are being offered to the east.

The city learned about the shutdown on Oct. 1, just moments before the public announcement, the mayor said. It was finalizing its budget for the coming year, and had to adjust quickly.

Barrow said it is leaving vacant city positions unfilled and even laid off a worker. It shelved a $1.7 million project to update the city's municipal water well. That means walking away from a $300,000 state grant.

Lamb Weston represented roughly 40% of the city's utility revenue. Without it, it can't afford to cover the balance of the cost.

"I hate to give up $300,000," he said, "But we can't sink a million dollars into a well we don't need."

Port officials hope to salvage the well project, seeing it as a key to recruiting new industry in the future.

Hayden told the port commissioners it will be needed in the future, either by the city or a future manufacturer.

If workers move families to new jobs somewhere else, that would translate into fewer students -- and funding -- for North Franklin schools.

Superintendent Brian Moore acknowledged the possibility, but he's not panicking.

The district's top priority is supporting students and families affected by job losses.

"We know that impacts a lot of our families," he said. One way: The school district is hiring for bus drivers, substitutes and secretaries.

It even parked a bright yellow school bus on Columbia, with flags touting the open driver jobs.

Moore said there isn't an immediate concern about the property tax implications.

Lamb Weston's Gum Street plant is assessed at about $43 million and received a 2024 property tax bill for nearly $363,000, down from $412,000 in 2023, Franklin County property records show.

The school district's levies will be paid, he said.

"We want to see what will happen with that property over time," he said. "Our number one concern is supporting families feeling stress."

Franklin County Public Utility District, the area's primary power source, is also said it was assessing the impacts of the plant closure in a statement to the Tri-City Herald.

"We recognize that it is a substantial loss for both the Connell and Tri Cities communities on multiple levels. Franklin PUD is committed to taking the necessary steps to minimize the impacts of the plant's closure to ensure those directly affected and customers in general continue to receive electric service at the lowest cost," it said.

Lamb Weston has encouraged workers to apply for positions at facilities in the Mid-Columbia, where it operates corporate offices in Kennewick and production plants at Pasco, Paterson, Quincy, Richland, Warden, Boardman (east, west and central), Hermiston and in Idaho at American Falls and Twin Falls.

Two job fairs already were held this week in Tri-Cities and Connell. More are planned.

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