Economic diversification crucial for Adams County's future, ACDC director says

OTHELLO — Kyle Niehenke, executive director for the Adams County Development Council, used the example of national companies to demonstrate some of the challenges of business development in a sparsely populated county. 

“If anyone asks, yes, I would love a Panda Express here too,” Niehenke told Othello City Council members Monday. “We are not at their population threshold – they have a hard 50,000 population limit. There are others that are interested, but Panda is the one everyone seems to ask me about. They’re just not quite there for us.” 

Niehenke detailed ACDC activities in 2026 for council members. Adams County is sparsely populated and located between much bigger population centers, and Niehenke cited hotels as another example of that challenge.  

“Last year I got asked to find us a hotel, and I’m trying. I’ve been in three hotel developer conversations this year. One of them got really close. Everyone’s going to ask, so I’ll get ahead of it – why do we not have a hotel still?” Niehenke said. “Part of the nuances to that is we are stuck between the Moses Lake and Tri Cities market, and those franchise agreements are incredibly challenging to navigate. People in Moses Lake have basically first right of refusal on our territory, and they’re not keen to go build a hotel when it may step on their existing hotel 20 miles to the north. There is no silver bullet for that, but we are working on that.”  

One developer is still interested, he said, although there’s no guarantee.  

Niehenke said a new hotel is an example of the kind of growth and diversification that Adams County will need for its long-term health. 

“To grow authentically in Adams County, we have to be willing to say yes to things. Things that may be uncomfortable, things that are very much outside our comfort zone. I’m as pro-ag as the day is long, but I also know that putting all of our eggs in the agricultural basket is not sustainable,” he said.  

Profitability has been a challenge for Washington farmers, he said. 

“While I want to support agriculture, ACDC’s mission is to definitely diversify and then add resilience to our economy. And while I want to find agricultural opportunities like more food processors, only seeking those as our solution is not sustainable, nor is it realistic. Times have changed,” Niehenke said. 

Food processing, he said, is among the possibilities for future growth, along with agriculture technology and support services. There are others outside the ag sector, however. 

“I think there’s a lot of opportunity for us to look into some of this advanced manufacturing, and to start diversifying our economy with some of these things, where we can go make widgets for this component or that one,” he said. 

Advanced manufacturing doesn’t have to mean making the entire product, he said – maybe aircraft won’t be manufactured in Adams County, but there are opportunities. 

“We don’t have to put the plane together to be part of it, and that’s one example of a thousand where what we can do here is not limited, (and) we have to stop thinking it is,” he said. 

The county does face some challenges when it comes to the kind of infrastructure necessary to attract some businesses, he said, and cited industrial wastewater as an example. 

“It’s a heavy lift, but it is something that five, 10 years from now, I don’t want us to be having the same conversation of looking at it, saying we should,” he said. “I want to have a plan, but I’m very aware of the cost with that. But if we pursue that in earnest, that is something that would dramatically help us.” 

Niehenke said the industrial park in Bruce, owned by the Port of Othello, offers some opportunity. 

“Ports, when done well, have access to financing tools, some funding mechanisms, and they can do some pretty creative things. In a perfect world, (the port) is probably the carrier of the bulk of the water on this project because it’s going to likely be out in Bruce,” he said.