Scotia faces new challenges as last company town transitions from timber era

William F. Honsal, Sheriff
William F. Honsal, Sheriff - Humboldt County Sheriff's Office
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William F. Honsal, Sheriff
William F. Honsal, Sheriff - Humboldt County Sheriff's Office

The town of Scotia in Humboldt County, California, is undergoing a slow transformation as it moves away from its roots as a company town. Once owned and operated by the Pacific Lumber Company (PALCO), Scotia has faced significant changes since the timber wars of the 1990s and the subsequent bankruptcy of PALCO in 2008.

Mary Bullwinkel, who served as spokesperson for Pacific Lumber during a period marked by environmental protests such as Julia “Butterfly” Hill’s two-year tree sit in Luna, now works to preserve Scotia. She and Steve Deike, another longtime PALCO employee, are tasked with selling off homes in the town to individual buyers—a process that has proven complex and lengthy.

“It’s very gratifying for me to be here today,” Bullwinkel said. “To keep Scotia alive, basically.”

The transition from company ownership to private residency has not been straightforward. As Bullwinkel noted, “No one has ever subdivided a company town before.” The process required legal restructuring because Scotia was originally built without individual parcels or separate utility systems.

New residents like Morgan Dodson have found appeal in the town’s character. “It’s beautiful. I call it my little Mayberry. It’s like going back in time,” Dodson said after purchasing her home in 2018.

Despite these successes, only 170 out of 270 houses have been sold nearly two decades after PALCO’s bankruptcy. Seven more homes remain on the market. The local real estate market’s downturn has contributed to slower sales and hesitation among potential buyers.

Scotia’s situation reflects broader economic shifts in Humboldt County—first with the decline of logging and more recently with challenges facing the cannabis industry.

“Scotia is a microcosm of so many things,” said Gage Duran, an architect working on redeveloping the old hospital into apartments. “It’s a microcosm for what’s happening in Humboldt County. It’s a microcosm for the challenges that California is facing.”

Duran highlighted difficulties such as labor shortages tied to economic changes: “I would guess that a portion of the skilled workforce has left Humboldt County,” he said, referencing how some workers had ties to both construction and cannabis sectors before recent downturns.

Historically, life in Scotia was closely managed by Pacific Lumber Company, which provided housing and community amenities but also controlled much about daily life for its employees. Jeannie Fulton recalled fond memories associated with living near Scotia when her husband worked for PALCO: annual Christmas parties were especially memorable for their generosity toward children.

The transition accelerated after Maxxam Inc.’s hostile takeover of Pacific Lumber in the 1980s led to increased logging rates and debt accumulation—factors that ultimately contributed to bankruptcy.

Deike reflected on his experience transforming Scotia: “They did whatever they wanted,” he said about earlier construction practices by Pacific Lumber. “Build this house over the sewer line. There was a manhole cover in a garage. Plus, it wasn’t mapped.”

Home sales began in earnest starting around 2017; however, progress remains gradual due to infrastructure issues and current market conditions.

Dodson mentioned some drawbacks that might deter buyers: “We don’t have garages and the water bill is astronomical.” However, she added appreciation for craftsmanship inside homes made from redwood.

Duran’s redevelopment project at the former hospital has also encountered delays due to supply shortages and lack of available workers: “A project that was supposed to take a year is now in its third,” he said.

Last year saw Julia “Butterfly” Hill return for an event hosted by Sanctuary Forest at Scotia Lodge—a venue once used by timber executives but now operating as a boutique hotel—highlighting ongoing connections between past activism and present-day community efforts.

Tamara Nichols moved to Scotia recently without knowing much about its history but values proximity to nature: “All those trees, there’s just a feel to them.”

As efforts continue amid economic uncertainty, those involved hope investments will help secure Scotia’s future while preserving its unique character rooted deep within California’s evolving landscape.



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