Published November 2002

Local economy buoyed
by work on USS Shoup

By John Wolcott
SCBJ Editor

Most people only see gray when they look at the Navy’s newest destroyer, the USS Shoup, at its moorage in the Port of Everett. But many business people in Snohomish County see gold.

That’s because the local economic impact of three months of work by some 300 Northrop Grumman employees and nearly 50 U.S. Navy personnel has been estimated at more than $10 million by the Snohomish County Tourism Bureau.

The company wanted to secure local support while it conducted a PSA — a Post Shakedown Availability — contract for the Navy, including upgrading equipment and electronics systems on board. Work on the ship is expected to wrap up by mid-December.

A great deal of the credit for bringing the county such a welcome flow of revenue goes to Nagib Lakhani, Vice President of Northgate Hotels, who helped prepare the winning bid for providing lodging and meals for the Grumman work.

His advantage was managing a property portfolio that included the Best Western Cambridge Inn in Everett, Hampton Inn & Suites in Lynnwood and the Ramada Inn at Northgate, along with the Berkshire Grill restaurant at Northgate.

But he couldn’t have won the competition without altruistically including six other hotels in Snohomish County to help handle the Grumman crew.

“We worked with the Northrop Grumman people about 18 months and tried to bring everything under one umbrella to meet their requirements. We were fortunate to get the bid. This was the first time we’ve done something like this. It was a significant package and undertaking,” Lakhani said. “Even the per diem paid to workers totals $10,000 a day, an enormous economic boost at a time when it’s really needed.”

Port of Everett Executive Director John Mohr, who credits the Shoup work for bringing the port more than $300,000 in revenue, is already looking ahead to a similar project.

“Another ship is due here in about 14 months, needing the same kind of work,” he said, smiling.

RELATED: Marina project, military work part of port strategy

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