Columbian plans return to former offices

Oct 09, 2008 (The Columbian - McClatchy-Tribune Information Services via COMTEX) -- BAC | Quote | Chart | News | PowerRating -- Swept by the double tsunami of a sour economy and new building costs, The Columbian Publishing Co. on Wednesday announced plans to relocate its business and newsroom operations to its former offices at 701 W. Eighth St. in downtown Vancouver.

Columbian Publisher Scott Campbell said the move is out of the need to generate more revenue from a new six-story building constructed by Campbell and his wife, Jody. The offices, south of Esther Short Park, opened in January.

The options, Campbell said, are to either lease all of the 118,000-square-foot $30 million structure or to sell it. At present, Columbian newsroom, advertising and circulation operations occupy four of the six floors in the building at 415 W. Sixth St.

The newspaper may also seek Chapter 11 bankruptcy protection if it is unable to negotiate a new loan with Bank of America, which financed the new six-story Columbian Building at 415 W. Sixth St. Chapter 11 gives a business time to reorganize and return to financial health.

"We have been greatly affected by the downturn in the economy," Campbell said.

"Our customer groups, which include real estate and autos, are heavily impacted."

Debt on the Columbian Building compounded the problem. The building is owned by Downtown Vitality Partners, a business held by the Campbell family, and is operated by The Columbian Publishing Co.

A number of tenants have moved in and are paying market-rate rents, Campbell said. But The Columbian's falling revenues have made it difficult to cover its own use of the building.

To trim costs, The Columbian has cut 50 jobs this year, leaving 282 employees, including 12 at the Camas Post-Record. It has also reduced the number of pages printed. But the savings were not enough.

Campbell declined to say whether the business or Downtown Vitality Partners has missed payments, or to comment on the progress of negotiations with Bank of America. With credit markets tight, loan negotiations may prove especially challenging.

"We strongly believe that we will be successful through this transition," Campbell said. "With the newspaper and our Web site, we continue to be market leaders for both advertisers and readers. We reach many more customers than either TV or radio in this market."

But until the economy improves, The Columbian will continue to struggle, he said.

"It feels terrible to be in this situation," he said. "This is definitely the most difficult time in my career."

Campbell represents the third generation of his family to lead the newspaper, which was purchased by his grandfather, Herbert Campbell, in 1921.

Herbert steered the paper through similar challenges during another downturn 80 years ago, his grandson said.

"The Columbian went through Chapter 11 protection as a result of the Great Depression," he said.

The relocation to 701 Eighth St. will be preceded by upgrades to the older building. The move is expected in the first quarter of 2009.

To see more of The Columbian, or to subscribe to the newspaper, go to http://www.columbian.com. Copyright (c) 2008, The Columbian, Vancouver, Wash. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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