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SECTION A <br />A PRODUCT MARKET ANALYSIS LINKED TO ECONOMIC <br />DEVELOPMENT OLD HEAT A MULTIPLICATIVE ENTERPRISE <br />FOR REGIONAL ECONOMIC DEVELOPMENT <br />Each program element within Old Heat is intentionally structured to deliver on the <br />project's four objectives: 1) creating high-wage employment, 2) commercializing <br />and diffusing technology statewide, 3) reusing state assets efficiently, and 4) <br />demonstrating a model for replicable Eastern-Western Washington economic <br />alignment. <br />The project is a component of a larger/multi government/industry effort to <br />address the region's lack of growth in high-value industries that is already <br />underway and funded by industry and government agencies for the same <br />purpose. For example, the National Science Foundation is funding this effort for <br />CWU to "increase institutional and regional capacity" for advanced technology <br />and worKorce development in the region, These industries targeted are <br />those that typically drive wage increases, career pathways, innovation, and <br />reinvestment into local communities. Also, for example, there is a Congressional <br />Directed Spending Request to launch the "Advanced Competitive Technology <br />lnstitute'that has passed first approval from the 2025 US Congress. This project <br />is designed to integrate the deployment of general-purpose technology such as <br />Al, blockchain, robotics, within existing regional businesses'operations to <br />make them more competitive at the national and international levels. Per the <br />RegionalContribution Continuum (RCC) model, it is intended to move existing <br />and new businesses from "Retentive" and "Additive" into the "Accelerative" <br />category where they serve to build base industries in the regional base. <br />The Advanced Competitive Technology lnstitute (ACTI) will serve as the applied <br />commercialization and technology-diffusion arm of Old Heat. Anchored at Central <br />Washington University's Business and Community Services division, ACTI is <br />designed to connect research institutions, manufacturers, and rural enterprises <br />through hands-on programs that translate innovation into production. lts core <br />functions include helping firms adopt advanced technologies, training workers in <br />34 | Old Heat CERB Feasibility Study <br />high-demand technical skills, and linking Washington's regional industries with <br />state and federal innovation initiatives. Through ACTI, Old Heat becomes not just <br />a facility, but the mechanism by which the region participates directly in <br />Wash ington's statewide i n novation ecosystem. <br />Kittitas County, with a population of roughly 44,000, sits between two powerful <br />economic hubs: the Yakima Valley to the south and the Seattle Metro Area to <br />the west. Yet, despite this location, Kittitas County lags significantly behind its <br />neighbors in median wages and industrial composition. As shown in Map A: <br />Median Wages and Wage GroMh by County, Kittitas County's median household <br />income of $69,928 trails far behind King County's $135,075 and even lags the <br />state median of $94,605. While Yakima County shares similar wage limitations <br />($69,525), it maintains a stronger base industry cluster in agriculture that Kittitas <br />County lacks. <br />ts'llslfr <br />ga6lr <br />lr.rc <br />Exhibit 3: <br />Data Source: WA State Employment Security Depaftment: httpst/esd.wa.gov/ <br />jobs-and-training/labor-market-informatioilemployment-and-wages/medi- <br />an-and-hourly-wages <br />Data was aggregated usrng Sfafe Quafterly Wage Data and the LED (Local Em- <br />ployment Dynamics) reportfrom fhe US Census Bureau and State Databases <br />167,Kit$ <br />1G0.7{ <br />20rD <br />l&L6t 3l* <br />!B S!a{t <br />lcrr <br />$i& <br />as <br />36,1!8ler <br />ler,835 <br />tSar <br />toaJt! <br />rCar <br />*|ril <br />!0+ <br />$62.19. <br />2lr <br />Elt90rit <br />351,536 <br />tdr.7a <br />$r-880 <br />rrtr <br />t6r''t <br />J81.{ 14& <br />S.,::i <br />$0,m <br />tr3r