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Home My WebLink AboutPlanning 2014-07-22 COMPLETE AGENDA PACKETCity of Tukwila Jim Haggertoii, Mayor Department of Community Development Jack Pace, Director CHAIR, LOUISE STRANDER; VICE - CHAIR, MIKE HANSEN; COMMISSIONERS, THOMAS MCLEOD, BROOKE ALFORD, SHARON MANN, MIGUEL MAESTAS, AND NHAN NGUYEN PLANNING COMMISSION WORKSESSION AGENDA JULY 22, 2014 - 6:30 PM TUKWILA CITY HALL COUNCIL CHAMBERS L Call to order IL Attendance III. Review updates to the Economic Development and the Tukwila South elements of the Comprehensive Plan per RCW 36.70.A, and make a recommendation to the Tukwila City Council. Sample motions are on the back 6300 Sozithcenter Boulevard Suite #100 • Tukwila, Washington 98188 • Phone 206 - 431 -3670 • Fax 206- 431 -3665 City of Tukwila Jim Haggerton, Mayor Departm ent of Community Development Jack Pace, Director CHAIR, LOUISE STRANDER ; VICE - CHAIR, MIKE HANSEN ; COMMISSIONERS, THOMAS MCLEOD , BROOKE ALFORD , SHARON MANN, MIGUEL MAESTAS , AND NHAN NGUYEN PLANNING COMMISSION AGENDA JU LY 24 , 2014 - 6:30 PM TUKWILA CITY HALL COUNCIL CHAMBERS I. Call to order II. Attendan ce III. Adoption of 06/24/14 and 6/26/14 Minutes IV. CASE NUMBER: L13 - 0061 Tukwila South APPLICANT: City of Tukwila REQUEST: Review updates to the Tukwila South element of the Comprehensive Plan per RCW 36.70.A, and make a recommendation to t he Tukwila City Council. th LOCATION: Generally south of S. 180 to the City limits V. CASE NUMBER: L13 - 0054 Economic Development APPLICANT: City of Tukwila REQUEST: Review updates to the Economic Development element of the Comprehensive Plan per RCW 36.70.A, and make a recommendation to the Tukwila City Council. LOCATION: Citywide VI. DIRECTOR’S REPORT VII. AJOURN S ample motion s are on the back 6300 Southcenter Boulevard, Suite #100 • Tukwila, Washington 98188 • Phone 206 -431-3670 • Fax 206 -431-3665 City of Tukwila Planning Commission Planning Commission Worksession Meeting Minutes Date: June 24 , 2014 Time: 6:30 PM Location: City Hall Council Chambers Present: Chair, Louise Strander; Vice Chair, Mike Hansen ; Commissioners , Thomas McLeod, Brooke Alford , Sharon Mann, and Nh an Nguyen Absent: Commissioner , Miguel Maestas Staff: No ra Gierloff, Deputy Director; Rebecca Fox , Senior planner ; Carol Lumb, Senior Planner; Dave Johnson, Parks and Recreation , Superintendent; and Wynetta Bivens, Planning Commission Secretary TOPIC : Updates to the Comprehensive Plan Parks and Recreation an d Open Space, Community Image and Identity , and Roles and Responsibilities Elements. OPENING Nora Gierloff explained the meeting process for the elements coming before the Commission over the next several months. A worksession will be held on the fourth Tuesday of the month to discuss staff’s proposed changes, and for the C ommission to ask questions , and to make or think about changes they would like to make . A public hearing will be held on the fourth Thursday of the month to allow public input . After the hearing, the Commission will make recommendations that will be forwarded to the City Council. DISCUSSION Rebecca Fox gave an overview of the Comprehensive Plan Elements update proces s , which has to be completed by 6/30/15. The Comp Plan’s basic prio rities are : 1) improve and sustain and improve neighborhoods ; 2) redevelop and reinvigorate Tukwila International Boulevard ; 2) , Increase industrial and manufacturing jobs along East Marginal Way and in the Manufacturing/ Industrial Center ; and 4) devel oping a th r iving Urban Center in the Southcenter area. As the plan is updated the priorities of the 2012 Strategic Plan will be to incorporate. During the process staff has made the effort to reach out and involve and engage the community on different ele ment s and topics. Parks, Recreation and Open Space Elements (PROS) Dave Johnson , Parks and Recreation Superintendent and Jonathan Pheanis , Consultant , MIG , provided an overview on Parks, Recreation and Open Space . This element takes different pieces fro m other elements and cons olidates them into one PROS ele ment. The main priorities and ideas are adapted from the PROS Plan, adopted in February, 2013. There was extensive community involvement from the public to identif y needs during the PROS plan’s devel opment . The following objectives were addresse d; habitat projects, creating environments and opportunities to showcase diversity, inclusive environments, mobile programming, creating affordable access to services, healthy people and places, and maintaining parks, and long term sustainability. 2 PC Worksession Minutes June 24, 2014 Commissioner Alford Requested to - Add language RE: Urban Agriculture and the City's support of it in other elements. She also raised the issue of planted corridors to attract and assist bees. Commissioner Nguyen asked about a Dog Park recommendation. Commissioner Mann requested that on page 4, the last paragraph before the sentence, "A large site acquisition could " have more emphasis on "better arrangement, management and improvement of existing parks ". She explained that maintaining existing parks should be a higher priority than acquiring new properties. She also Requested - Adding "Education and Community Involvemer encourage a culture of stewardship. Commissioner Alford requested that "small-town residers Page 12, 6.3.2, Recess - at 7:45 PM Re- convened at 7:50 Community Image and Identity Carol Lumb gave an overview on Community Image and Identity, which focuses on sense of place and community identity topics. Stafl'isdproposing to change the original title in the chapter from "Community Images" to "Community Image andIdcnkity ". Re- arrangements have been made, and portions of the chapter were moved to the Natural Environmental Shoreline, and Transportation Corridors sections. New topics have been added and new headings with some sub - sections under issues. Also the policies and goals from the Strategic Plan are reflected in the chapter. Staff is asking the Commission to consider whether the policy that mentions "Small- town" policy number 1.1.1 should be deleted. he Implementation section to e architectures" dle ed from Commissioner Mann Corn nted on policy 1.1.3, which separately identifies specific neighborhoods within the City. She said it is a great idea for some neighborhoods but a bad idea for other neighborhoods. Roles and Responsibilities Rebecca Fox gave an overview on Roles and Responsibilities, which deals with the social environment, and the role that the City takes toward the community. It addresses meeting basic needs. Rebecca explained that the policy for safety and security was expanded to include emergency management and the policies about flood management were moved from the Utilities section. She said that the Roles and Responsibilities element includes policies that stress communicating with clarity to the entire community, and reaching out to diverse communities in order to increase engagement in City affairs. In addition, the element emphasizes clear government processes, the importance of the City's regional partnerships, and the benefits of increased regional collaboration. Commissioner Alford referenced policy 15.1.10 and whether there are strategies for the City to reduce their own carbon foot print and lead by example. Page 2 of 3 PC Worksession Minutes June 24, 2014 Staff said the City has adopted some specific policies from the Utilities element that could be referenced. In addition, Tukwila has signed the Mayor's Agreement on Climate Change, and is a partner in the King County City's Climate collaboration, which addresses more ambitious goals than taking specific actions. Commissioner Mann asked for clarity on policy 15.1.16. She also said that the strategies on page 9 were more inclusive to the immigrants and exclusive to other residents. She said strategies and programs should be all inclusive in all areas of the plan. Staff said this policy was taken directly from the Strategic Plan but that it could be broadened. Ms. Fox said that she appreciated Commissioner Mann's comment and suggested changing the language to specify the "entire community ". Commissioner Nguyen suggested placing a stronger emphasis on the "underrepresented community. Commissioner McLeod suggested removing the word "immigrants" from policy 15 ,1,16, in order to emphasize that good relations with the police were desired for the entire community. The Commission was in consensus. Commissioner Hansen said Commissioner Mann's comment was a good one and the language is sprinkled throughout the document, which is something to think about before Thursday. Staff said they want the language to be appropr; Commissioner Nguyen said that he appreciated staff's intention to place extra emphasis on the extra communication to folks who may not understand English readily. Commissioner Mann also requested that the policy is inclusive to the senior citizen community. Commissioner Nguyen requested staff look into where all emergency management is included in other chapters. Staff suggested adding language referencing the other functional plans to the narrative so it is clear that additional work has been done on emergency management. Staff will return with language for the areas requested by the Commission. Adjourned: 8:45 PM Submitted by: Wynetta Givens Planning Commission Secretary Page 3 of 3 3 4 111111111 ir City of Tukwila Planning Commission Planning Commission Public Hearing Minutes Date: June 26, 2014 Time: 6:30 PM Location: City Hall Council Chambers Present: Chair, Louise Strander; Vice Chair, Mike Hansen; Commissioners, Thomas McLeod, Brooke Alford, Sharon Mann, Miguel Maestas, and Nhan Nguyen Staff: Nora Gierloff, Deputy Director; Rebecca Fox, Senior planner; Carol Lumb, Senior Planner; Dave Johnson, Parks and Recreation Superintendent; and Wynetta Bivens, Planning Commission Secretary Motion: Commissioner Hansen made a motion to approve Alford seconded the motion and all were in favor. e 5/22/14 es. Commissioner Chair Strander called_the public hearing to order at 6:4£1; She swore in those wishing to provide testimony. Rebecca Fox, Senior Planner, Department of Community Development, gave an overview of the Comprehensive Plan Update. She explained how often it is updated, the purpose for updates, State requirements and deadlines, and basic priorities. She also gave a schedule of upcoming elements to be reviewed between June and the end of the year Chair Strander opened the public h Planning Commission Public Hearing - Case Number L14 -033, Parks, Recreation and Open Space Comprehensive Plan Element Dave Johnson, Superintendent, Parks and Recreation, gave an overview on this new element. He said the City Council adopted a Parks, Recreation and Open Space Plan (PROS) this February, and that the PROS plan was developed during a 12 —15 month process. He said there was a lot of community involvement and engagement and the results were very pleasing. Planning Co Element ssion Public Hearing - Case Number L13 -0062, Community Image and Identity Carol Lumb, Senior Planner;' Department of Community Development, gave an overview. She said this is a chapter that focuses on a sense of place in community image and identity. The chapter has been changed quite a bit since the community has changed since 1995 and some topics in the chapter have been moved to other sections of the plan. A new section has been added that promotes healthy living and access to nutritious food. 5 6 PC Public Hearing Minutes June 26, 2014 Planning Commission Public Hearing - Case Number L13 -0055, Roles and Responsibilities Rebecca Fox gave an overview of this element that deals primarily with the social environment rather than the physical environment. It addresses the roles the City has and the responsibilities it takes for the community, including making sure that basic needs of the community are met. The element also describes providing safety and community, communicating through its programs and actions, reaching out to diverse communities to increase engagement by all residents, and realizing the City's role in the region through partnerships. Public Testimony: Alma Villegas, Community Program Director, Global to Local, suggested language for each of the three elements. The following is a small excerpt of the letter she read. "In the spring of 2014 Global to Local and Forterra in partnership with the City participated in a pilot program called Community Connector's to reach out to typically under represented populations residing in Tukwila. Based on the input received from the community " Ms. Villegas' letter provided recommended revised language and some additional language, for the Community Image and Identity, Parks,; Recreation and Open Space, Roles and Responsibilities Elements. Monica Davalos, a citizen testified (Alma Villegas interpreted the following for Ms. Davalos) she said she has lived in Tukwila for almost nine years and has felt that it is very difficult to get information having to do with the City. She said she had had no way of connecting with the City, but now as a Community Connector she has more information on topics of interest, such as the City of Tukwila's Comprehensive Plan. She and Osman Egal are both Community Connectors. Through the Community Connector program, she andOsman have been able to speak with their respective communities about City activities and how to be involved. They have formed a link with the City of Tukwila that didn't exist before. Ms. Davalos is a resident of Tukwila and supports the Community Connector Program because she feels it is very .important to keep giving information to the community and continuing to have a connection with Tukwila..," Commissioner Mann asked Ms. Davalos how she feels connected, what changed, and how she heard about the Community Connector; Ms. Davalos responded (translated by Ms. Villagas) "the way this has changed for me, before we would receive information by mail and we didn't know what to do with it and how to communicate with the City. Through the Community Connector program she received information that she has been able to share face to face with her community in order to create an interest with them about City topics. She learned tools for sharing information from Global to Local. Ms. Davalos answered additional questions for the Commission. Commissioner Strander asked for a brief overview on Global to Local. Ms. Davalos said Global to Local is a health initiative and explained how the organization was formed. Osman Egal, a citizen said he has lived in Tukwila for 15 years and he loves where he lives. He said they come from a different background and a different culture, and that he would like to have different food and meat available to purchase and a halal restaurant in the community. Commissioner Nguyen asked Mr. Egal for clarification. Page 2 of 5 PC Public Hearing Minutes June 26, 2014 Hyojin Whitford requested that lot size be decreased to 6,000 square foot from the current 6, 500 square feet. Maxine Anderson, a citizen who has lived in the community for 50 years, asked the Commission to recommend to the City Council that they put a hold on any building permits for any oversize houses until the Commission has had a chance to review the Housing element of the Comprehensive Plan The public hearing was closed at 7:25. The Planning Commission deliberated. The following changes were made during the walk through of the Elemen Park, Recreation and Open Space Page 1 - No change Page 2 - Correct typo Page 3 - In the first paragraph, in the last sentence, add the word "Local" before King County and a comma after King County. Page 4 - No change Page 5 - Paragraph 1,3rd line down add the word "to" in front of happen. In the paragraph under access awareness, 2nd sentence change the word "particularly" to "particular" Page 6 - Under Sustainable maintenance remove the Page 7 - No change Page 8 - Add 6.1.12, new language to read, "Maximize potential and capacity of existing Parks and Recreation resources to offset existing future demand" Page 9 - No change Page 10 -No change Page 11 - Correct typo Page 12 - 6.3,2 stake "and a s l -town residential style of architecture ". Page 13 - No change Page 14, 6.4.6 add the word "parks " after recreation and after opportunities, add. "To meet community needs ", Pages 15 -18 No change Page 19- 2nd to last bullet spelling correction from "practicable" to "practical" Page 19 - 4d' bullet, after the word "sources" add "including public- private partnerships" Motion: Commissioner Hansen made a motion to approve changes to Case Number L14 -033 and forward them to the City Council. Commissioner Maestas seconded the motion and all were in favor. Community Image and Identity Element Page 1 - No change Page 2 - 2nd sentence insert a space between "the" and "importance" Page 3 - Correct typo Page 4 - line nine after community add, "Including a culturally appropriate and language - specific approach that engages all members of its population" Page 3 of 5 7 8 PC Public Hearing Minutes June 26, 2014 Page 4 - Fifteen lines down from the top, after "involved talked with" insert the following language, "the City's diverse residents via culturally and language - specific Community Connectors who helped residents" Page 4 - The Planning Commission was in consensus to not include the last sentence under the Cultural Diversity section, recommended by Ms. Villegas as follows- change "efforts" to "process" and add: ", such as the work done with Forterra and Global to Local to establish `Community Connectors.— Page 4 - insert space 4"' sentence down, between "year" and Strategic" Page 5 - The paragraph beginning with "Seeking to expand access to healthy food..." has been revised to read, "The City seeks to expand access to healthy food and provide job tramming opportunities. The City will continue to provide use of the Tukwila Community Center's facilities by programs that empower community members by equipping them with hands -on vocational training to gain their footing in the food industry. In the process, the participants, such as refugees and immigrants, become integrated into local communities and economies. Page 5 - just before the section labeled "Commercial Development and Urban Design" in the last line add a space between "identifiable" and "boundary" Page 7 — Under "Community Image" section, 4"' sentence correct the spelling of "about." Goal 1.1 Page 8 - Policy, 1.1.1, revised language follows; Encourage the creation of locations and facilities where residents of all ages and cultures can gather for activities and events, such as public markets, parades and festivals that are representative of the City's diverse population. Policy 1.1.2, revised language follows; Strengthen the image and character of Tukwila's distinct areas and neighborhoods. Policy 1.1.5, d e Page 9 -Under Implementation Strategics 2 From last bullet revised to read, Support residential neighborhood identity where appropriate. Goal 1.2 Policy 1.2.4, A new policy - "Actively promote community engagement of the City's diverse population via non - traditional methods such as the Community Connector Program ". Motion: Commissioner Alford Moved to continue the meeting to 10:00 PM. Commissioner Hansen seconded and all were in favor. Goal 1.3 Under Implementation Strategies, next to last bullet revised language follows; Expand the linguistic and cultural competencies of the City Council, staff, Commissions and other city representative groups through recruitment, training and hiring. Under Healthy Living - Implementation Strategieslst bullet, 1st sentence, replace the word "establishing" with "participating in" Page 4 of 5 PC Public Hearing Minutes June 26, 2014 Motion: Commissioner McLeod made a motion to approve the Comprehensive Plan Updates to the Community Image and Identity Element as revised, and forward to the City Council for their review. Commissioner Hansen seconded the motion and all were in favor. Roles and Responsibilities Additional language added under safety and security, revised language follows; Perceived or actual lack of safety and security can hinder both individual and community development and feelings of well- being. Increasing the City's collaboration with the whole community around these issues, will help efforts to reduce and prevent crime while enhancing the overall sense of safety and security. Security also extends to emergency planning for natural and manmade emergency events, such as earthquakes, terrorism or the effects of climate change The City anticipates and has planned for these types of situations through efforts such as its Comprehensive Emergency Management Plan, and Continuity of Operations Plan. Strategies that enhance public safety and security will ultimately strengthen the community. Under Policies, Implementation Strategies, bullet added, language follows; Reduce the City's direct carbon emissions through specific steps, such as use of LED bulbs, lower emission fleet vehicles, solar panels on City facilities, energy conservation and other actions. Page 9 - Reflects language in the Community and Image Identity Element, "Expand the linguistic and cultural competencies of the City Council, sta groups through recruitment, training and hiring. :ommiss ons and other city representative Motion: Commissioner Alford made a motion to approve the Comprehensive Plan Updates to the Roles and Responsibilities element as revised, and forward to the City Council for their review. Commissioner McLeod seconded the motion and all were in favor. Director's Report: • The Planning Commission members' request application forms available. r a City email address was approved. Staff has Adjourned: 9:45 PM Submitted! by: Wynetta $wens Planning Commission Secretary Page 5 of 5 9 10 d City of Tukwila Jim Haggertoii, Mayor Department of Community Development Jack Pace, Director STAFF REPORT TO THE PLANNING COMMISSION Prepared July 14, 2014 HEARING DATE: July 24, 2014 FILE NUMBERS: PL13- 0051 -2015 Comprehensive Plan Update L13 -0061 Tukwila South Element L13 -0054 Economic Development Element APPLICANT: City of Tukwila REQU EST: 2015 Comprehensive Plan Update —The Planning Commission will hold a public hearing on the revised Tukwila South and Economic Development Elements. This is part of the periodic review and update of the Plan required by the Washington Growth Management Act. LOCATION: Tukwila South: Generally located south of S. 180th Street to the City's southern corporate limits. NOTIFICATION SEPA DETERMINATION: STAFF: ATTACHMENTS: Economic Development: Citywide Hearing Notice was published in the Seattle Times on July 10, 2014 and posted on the City of Tukwila website on July 18, 2014 An environmental determination will be issued prior to City Council consideration in the fourth quarter of 2014. Brandon J. Miles, Economic Development Planner A. Tukwila South 1. Proposed Tukwila South Element 2. Tukwila South Background Memo B. Economic Development 1. Proposed Economic Development Element with comments 2. Economic Development Background Memo a. Comprehensive Annual Financial Report (Excerpt) Page 1 1 1 12 2014 Comprehensive Plan Update Staff Report: L13-0054,1_13-0061 BACKGROUND The City of Tukwila's Comprehensive Plan, first adopted in 1995, establishes goals and policies that guide the community as it grows and changes over time. Its policies and land use map lay out the community's long range vision. The state Growth Management Act (GMA) requires counties and cities periodically to conduct a thorough review of their plan and development regulations to bring them up to date with any relevant changes in the GMA and to respond to changes in land use and population growth. The last required systematic review and update was completed in 2004. By June 30, 2015, the City of Tukwila is required to complete a periodic review and update of its Comprehensive Plan. Tukwila is undertaking the required update over several years, and is reviewing the Comprehensive Plan elements in phases. The update is proceeding according to a general schedule, work plan and public participation program adopted by the Council in March, 2013. OUTREACH For a full discussion of the outreach for the overall Comprehensive Plan update see the Staff Report for the June 26th Planning Commission public hearing. Additional outreach specific to the Tukwila South Element included an invitation to the area's major property owners to provide comments on the draft comprehensive plan element. Segale Properties met with the City about the revised element and provided comments and suggestions. Most of those comments and suggestions have been incorporated into the document. Additional outreach specific to the Economic Development Element included the City's first ever "Business Vitality Forum" on February 12, 2014, co- hosted by the City's Economic Development Group and the Department of Community Development. The forum was a moderated a discussion about issues facing the City's business community. A product of the forum was a SWOT analysis that is discussed in greater detail in the background memo. REVIEW PROCESS A work session with the Planning Commission is scheduled for July 22nd. Staff from the City's Economic Development Group will provide a presentation to the Planning Commission on major economic development trends for the region and City and the proposed revisions to the Elements. There will be a public hearing on July 24, 2014 to receive comments from the community. The Commissioners will have an opportunity to consider public input carefully and propose further changes, if desired. After the hearing, the Planning Commission will be asked to make a recommendation that will be forwarded to the City Council for consideration, a public hearing and adoption. The Comprehensive Plan document will be formatted and links to pertinent documents added after the City Council takes final action to adopt all the updated elements. SUMMARY OF PROPOSED CHANGES Proposed Tukwila South Element Page 2 of 4 07/16/2014 2014 Comprehensive Plan Update Staff Report: L13-0054,1_13-0061 Significant progress has occurred in Tukwila South over the last ten years to make the combined vision of the City and Segale Properties, LLC a reality. The actions that have taken place over the last ten years make the current Element of the Comprehensive Plan outdated. Attachment Al. is a rewritten Element for Tukwila South that will completely replace the current Element. The following briefly outlines the changes proposed in the revised element: • This new Element uses the Tukwila Master Plan as a basis for the policies provided. Additionally, certain elements of the Sensitive Areas Master Plan (SAMP) and Development Agreement are included in the revised Comprehensive Plan element. • The Element has been reformatted and reorganized to be consistent with the City's new format for the Comprehensive Plan. • Outdated language referencing the need for a master plan has been removed since the City has approved a master plan for the area. • The "Background Section" has been updated to discuss the entitlements and agreements that are approved by the City. Proposed Economic Development Element The City has maintained an Economic Development Element in the City's Comprehensive Plan since the City's current Comprehensive Plan was adopted in 1995. Inclusion of an Economic Development Element in a city's Comprehensive Plan is voluntary and not required under Washington State law. Attachment B 1. is a rewritten Economic Development Element for the City's Comprehensive Plan. Given the significant changes that have been made a strikeout /underline version is not provided, instead notes from staff discussing the changes are shown. The following briefly outlines the changes made to the Economic Development Element: • The element has been reformatted and reorganized to be consistent with the City's new format for the Comprehensive Plan. • Significant language has been added regarding improving the "employability" of City residents. • The "Economic Setting" section has been updated with current data. Data in this primarily comes from the City's Strategic Plan and from the Puget Sound Regional Council. • References to code enforcement have been removed from the element. Economic Development does not conduct code enforcement activities. • Where applicable, goals and policies from the City's Strategic Plan have been included. • Duplicate language that is provided in other Comprehensive Plan Elements has been removed. • "Implementation Policies" that have either been completed or which are outdated have been removed. For example, language regarding completing overall environmental impact statements has been refined to only discuss West Valley Highway and Tukwila International Boulevard, since area -wide environmental impact statements have been completed for the Manufacturing Industrial Area, Southcenter, and Tukwila South. Page 3 of 4 07/16/2014 13 14 2014 Comprehensive Plan Update Staff Report: L13-0054,1_13-0061 REQUESTED ACTION The Planning Commission is asked to hold a hearing on the proposed changes to the Tukwila South and Economic Development Elements, develop Planning Commission recommended versions of the elements and forward them to the City Council for final action. Page 4 of 4 07/16/2014 ATTACHMENT Al Tukwila South Element (Draft) TUKWILA SOUTH PURPOSE STATEMENT Tukwila South is intended to be a multi -use regional employment center containing technology, office, commercial and residential uses. National and international employers will be featured in campus settings. Retail activities may range from individual large -scale national retailers to neighborhood retail and shopping centers that support office and high - tech campuses and residential neighborhoods. Residential uses may include a mix of single - family and primarily multi - family dwellings at low, medium, and high densities will provide a variety of housing opportunities. Tukwila South will create a memorable and regionally identifiable place by building upon the Northwest tradition of quality outdoor environments and quality building materials, combined with traditional Puget Sound building elements. ISSUES Unified Ownership— Shared Vision The Tukwila South area comprises nearly 500 acres and is largely under single ownership by Segale Properties LLC, with a few parcels owned separately. In 2009, the City of Tukwila approved a master plan for the Tukwila South Project, which comprises a majority of the Tukwila South area. The Master Plan defined the goals, objectives and vision for the Tukwila South project area. Also in 2009, the City of Tukwila and Segale Properties LLC entered into a Development Agreement for Tukwila South project that vests the project to existing land use regulations until 2024. Both the Master Plan and the Development Agreement reflect the shared vision of the City and Segale Properties LLC in the future development of Tukwila South. Land Use and Environmental Much of Tukwila South lies in a valley formed by the Green River, with a valley wall to the west consisting of both steep and moderate forested slopes. Until recently much of the valley portion of the site was used for agriculture, along with residential and commercial uses in the north part of the area. 1 City of Tukwila Comprehensive Plan - Tukwila South Element PC Review Draft Z: \DCD N CLERICS \PC LASERFICHE PACKET \2014 PC PACKETS \07 -22 -14 AND 7- 24- 14 \A1_TUKWILA SOUTH ELEMENT, DRAFT FOR PC.DOCX 15 Tukwila South Element (Draft) Several watercourses, some of which may be salmonid bearing, and wetlands have been identified in Tukwila South, both in the valley and on the slopes to the east of Interstate 5 and Orillia Road South. The Tukwila South Project, being completed by Segale Properties under a Development Agreement with the City, includes the alteration of two streams and filling of several acres of wetlands. As mitigation for these alterations, stream and wetland enhancements have been completed south of South 200th Street. Additional fisheries impacts are being mitigated by construction of a 7 -acre off - channel habitat area adjacent to the Green River. A segment of the Green River levee protecting the west valley floor in Tukwila South has been reconstructed to enhance flood protection of the area and to ensure reasonable flood insurance costs for property owners. Additionally, the City has issued Segale Properties LLC a grading permit that allows the Tukwila South project to be filled well above the 100 - year flood elevation. The valley wall represents a large portion of Tukwila South. This area is predominantly vacant with some low - density residential detached single -unit structures. Landslide potential is moderate to high for portions of the valley wall. These areas are protected by Native Growth Protection Area easements and will remain undeveloped in perpetuity. Transportation, Access and Utilities Two new street projects have been completed to improve circulation in and around Tukwila South. The extension of Southcenter Parkway through Tukwila South has greatly enhanced the development potential of the area. The construction of S. 184th Place to replace S. 178th Street has provided a safer east /west connection for south King County residents Utilities, such as electric power, gas, communication, water, and sewer, have been constructed in Tukwila South and are capable of serving the envisioned future urban development. A regional surface water system for management of stormwater is being developed in Tukwila South (the south portion of the system has been constructed; the north portion will be constructed in the future). Tukwila South has excellent connectivity to the regional freeway system, with direct access available to Interstate 5 and State Route 167. Access to Interstate 405 can be obtained via State Route 167 or West Valley Highway. Mass transit to the area is currently limited and the area is not served by either light or heavy rail. 2 City of Tukwila Comprehensive Plan - Tukwila South Element PC Review Draft Z: \DCD N CLERICS \PC LASERFICHE PACKET \2014 PC PACKETS \07 -22 -14 AND 7- 24- 14 \A1_TUKWILA SOUTH ELEMENT, DRAFT FOR PC.DOCX 16 Tukwila South Element (Draft) Services The area is located adjacent to the Tukwila Urban Center area, which has one of the largest concentrations of retail square footage in the region. Tukwila South is currently served by Highline and Renton School Districts. Children currently living in the area are bused to Renton for school. GOALS AND POLICIES Quality Development Goal 9.1 Tukwila South will become a regional destination developed with high - quality mixed -use, office, retail and residential uses, while protecting the environment and providing recreational opportunities. Policies 9.1.1 Implement the long -term vision and master plan for Tukwila South in order to create a more cohesive development pattern than if the property was developed on a parcel -by- parcel basis. 9.1.3 Design infrastructure to accommodate increased employment and residential density over time. 9.1.4 Encourage the use of entry features, landscaping and public open space to make Tukwila South a memorable and regionally identifiable place. 9.1.5 Encourage development in Tukwila South to have internally integrated districts and uses in addition to external connections to neighboring and regional assets. 9.1.6 Construct a comprehensive amenity system in Tukwila South that leverages the area's assets. 9.1.7 Ensure development in Tukwila South is designed and implemented in accordance with the approved Sensitive Area Master Plan to protect and enhance the natural environment. 3 City of Tukwila Comprehensive Plan - Tukwila South Element PC Review Draft Z: \DCD N CLERK'S \PC LASERFICHE PACKET \2014 PC PACKETS \07 -22 -14 AND 7- 24- 14 \A1_TUKWILA SOUTH ELEMENT, DRAFT FOR PC.DOCX 17 Tukwila South Element (Draft) 9.1.8 Support efforts to relocate the city boundary between the cities of Tukwila and SeaTac using Interstate 5 as a logical boundary between the two cities. Implementation Strategies • Zone for office, technology /flex space, and housing, while limiting the overall size and type of retail and service uses. • Administer the City's Commercial Design Guidelines for Tukwila South. • Develop Residential Design Guidelines for Tukwila South. • Regulate, implement, and monitor sensitive areas in accordance with the sensitive areas master plan. • Obtain easements and, when funding is available, construct a north /south river trail. • Explore a pedestrian connection over the Green River that connects Tukwila South to the City of Kent on the east side of the Green River. • Ensure that internal pedestrian connections are in place to connect buildings with one another. • Partner with the City of SeaTac and King County to lobby the Washington State Department of Transportation and regional agencies for improved freeway access at South 188th Street. • Lobby King County Metro and Sound Transit to increase mass transportation in the area, including rapid ride buses, express bus services, and light rail. • Develop a system to track trip generation in Tukwila South to ensure that the terms of the Development Agreement with Segale Properties, LLC Inc. are met. • Obtain City control and ownership of Segale Park Drive "C" per the Addendum to the Tukwila South Development Agreement. • Develop an interlocal agreement to realign the corporate boundary between Tukwila and SeaTac. 4 City of Tukwila Comprehensive Plan - Tukwila South Element PC Review Draft Z: \DCD N CLERICS \PC LASERFICHE PACKET \2014 PC PACKETS \07 -22 -14 AND 7- 24- 14 \A1_TUKWILA SOUTH ELEMENT, DRAFT FOR PC.DOCX 18 ATTACHMENT A2 Tukwila South Background Memo COMPREHENSIVE LAND USE PLAN TUKWILA SOUTH ELEMENT BACKGROUND MEMO 2015 GROWTH MANAGEMENT ACT UPDATE to the COMPREHENSIVE PLAN 1. Background Information In 2010 the City of Tukwila completed its long standing goal of annexing Tukwila South. Tukwila South is just over 500 acres in size and represents one of the largest undeveloped greenfields in the Seattle metropolitan area. For comparison's sake, Tukwila South is larger than either South Lake Union or downtown Bellevue. Tukwila South is generally located South of 180th Street and extends to the City's southern limits (Figure 2). The area has no strong neighborhood identity at present, and is currently occupied by industrial, agricultural, office, and residential uses. A. Rationale for Revised Element As part of the "Tukwila Tomorrow Committee" work in developing the 1995 Comprehensive Plan, the City of Tukwila completed an in -depth Background Report for Tukwila South. The 1994 report examined many of the key issues for the area and was the basis for the current Tukwila South Element. In light of significant progress that has been made in achieving the shared vision of the City and Segale Properties, LLC regarding Tukwila South since 2004, the current Comprehensive Plan is outdated. Staff has prepared a new element to reflect the actions of the City over the last ten years, and to express its ongoing vision for the area. 11 19 20 0-5) King ounty Burien 3\ Seattle •I. ' •: ' Uri Lake We <ino County !nc n')c nt 0 Figure 1 2 Tukwila South Plan Area Legend Tukwila South Area Southcenter Plan Area * City Hall, Police, Court School City Maintenance Facility * Community Center • Fire Station 11 King County Library • Metro South Base Transit Center Post Office Annexation • 1 eth fs.,r , $ 180tti $1 1,1 .r14-4711' 1111111111111111 • • - . '.• 14 • ," • H.; , si• ir.„,}H • a c k 4 ''ir• b ' a ■ 43> -' ' ,.. ■ .4.:s. ' ,,, ,.... (r... • . e.)." c.., • ; si ' e co : • '1"Ale"./ 7,1 S 200th St gyF .....: . E ... & . * , # 1.,0. 47t ,, S 204thi t 1. 01•11lali i 1 11==1, 4.. .. Figure 2 3 Streets 1.1 In Id 1 • 1 Z, Tukwila Gity Limits Tukwila South Overlay Parcels " moo...101wRwm! 21 22 B. Planning History and Entitlement Background Development Agreement The City's current Comprehensive Plan calls for development in Tukwila South to occur in a coordinated manner. In 2009, to assist in developing t the area in a coordinated manner, the City of Tukwila and Segale Properties, LLC1 executed a Development Agreement (DA) for Tukwila South. Segale Properties, LLC owns over 500 acres in Tukwila south and according to the Ordinance that adopted the DA: "[ Segale] Intends to develop the Tukwila South Property consistent with the Tukwila South Master Plan ( "Master Plan "). The Master Plan envisions the creation of a major new employment and housing base on the Tukwila South Property. The plan calls for approximately ten million square feet of development that would be accommodated in a combination of a campus style research and office environments with a mix of other supporting uses such as retail, residential, commercial, hotel and flex tech ( "Tukwila South Project "). The Tukwila South Project will use the topographic and environmental constraints of the site to define the limits of its development area. The Tukwila South Project includes the extension of Southcenter Parkway in an alignment along the west edge of the valley floor; thus, functioning as the major transportation arterial through the site. The Tukwila South Project will also contain an integrated, internal circulation system of streets, sidewalks and pedestrian connections." There have been subsequent addenda and amendments to the DA. Master Plan Policy 9.1.3 of the City's current Comprehensive Plan element regarding Tukwila South encourages that a master plan be completed before any significant land altering occurs in Tukwila South. Furthermore, as outlined in TMC 18.41.010, the City Council may modify the development regulations without the need to change the underlying zoning. On June 8, 2009, the City of Tukwila adopted Ordinance 2234, which approved a Master Plan for Tukwila South defining defined the vision, goals, and objectives for the largely- vacant, mostly single -owner area. As was discussed in the Master Plan: "With nearly 500 acres of land five minutes from SeaTac Airport and adjacent 1 -5, the Tukwila South project site is the largest private development parcel in the greater Seattle area. Properly planned and implemented, the project will provide 25,000 new jobs and join the University of Washington, Microsoft and Boeing Everett as the region's fourth major, "non - Central Business District" employment center. It will become a major new urban node in the region and provide significant benefits to the City of Tukwila and improve the quality of life of its residents." The ten principles of the Master Plan are: Principle #1: Long Term Vision. The development of Tukwila South will be guided by a long -term vision that will create a different, more cohesive development pattern than if the property was developed on a parcel -by parcel- basis. 1 The Development Agreement was entered into with La Pianta, LLC, which was the predecessor entity to Segale Properties, LLC. 4 Principle #2: Creating a Destination Tukwila South will become a regional destination. Principle #3: Building Value Development decisions will be weighed by their ability to maximize the site's potential to create value. Principle #4: Multi -Use Tukwila South will include employment, goods and services, and housing. The project will be multi -use and include a wide range of businesses instead of focusing on industrial retail users. Residential is also being considered to bring additional vitality to the area. Principle #5: Increasing Density over Time Tukwila South will be planned to accommodate increased density over time. Principle #6: Quality of Environment Tukwila South will create a memorable and regionally identifiable place. Principle #7: Connections Tukwila South will connect externally to neighboring and regional assets, as well as internally by connecting its districts and other uses. This principle goes on to discuss the need to provide pedestrian connections throughout the project. Principle #8: Amenities Tukwila South will create a comprehensive amenities system that leverages the site's assets. Principle #9: Implementation Strategy Development must be strategically phased to successfully transition Tukwila South from agricultural and industrial property to an urban destination. Principle #10: Environmental Stewardship Tukwila South will be developed in a manner that preserves, protects, and restores the natural features of the area. Sensitive Areas Master Plan (SAMP) To facilitate development of the Tukwila South Project, the City approved a Sensitive Areas Master Plan under City of Tukwila project file number L10 -014. The SAMP allowed Segale to develop an area -wide plan for alteration and mitigation of sensitive areas that results in improvements to water quality, fish and wildlife habitat and hydrology beyond those that would occur through the strict application of the provisions of TMC 18.45, the City's sensitive areas regulations. The sensitive areas and their corresponding buffers identified as "Native Growth Protection Areas" will be permanently protected with easements recorded against such property. The Native Growth Protection areas are called Sensitive Area Tracts on the proposed plat. Mitigation work in Wetland 10 and 11 has been completed. Also, Johnson Creek has been relocated. This work is under the monitoring period. Off -site channel work is still under construction. 5 23 24 Grading Permit On April 29, 2011, the City issued a grading permit (PW10 -064) to Segale Properties, LLC for mass grading of the Tukwila South project areal. The purpose of the grading permit was to prepare the area for future development in accordance with the approved Master Plan and Development Agreement. The applicant is still in the process of completing the work outlined in the approved grading plan. State Environmental Policy Act (SEPA) In 2005, the City of Tukwila issued a Final Environmental Impact Statement (FEIS) under SEPA for future building out of Tukwila South. The Tukwila South FEIS analyzed the potential impacts associated with the build out (including re- development of the existing Segale Business Park), assuming full build -out of 10.3 million square feet of various uses. As part of this preliminary subdivision application the applicant submitted a SEPA checklist in order to extend a utility through a sensitive area. City staff determined that a new SEPA checklist was not needed and instead issued an addendum on December 14, 2012 for the proposed work. Shoreline Substantial Development Permit In conjunction with the above grading permit, the City of Tukwila issued a shoreline substantial development permit (L10 -025) for grading within 200 feet of the Ordinary High Water Mark (OHWM) and to modify an existing flood levee. Like the grading permit, the shoreline substantial development permit was to prepare for the future development of the Tukwila South area in accordance with the approved Master Plan and Development Agreement. Preliminary Subdivision In 2013, the City's Hearing Examiner approved a preliminary 47 -plat for Tukwila South. The plat will allow lots to be leased on an individual basis. Under State Law, Segale Properties has seven years to seek final plat approval from the City. 11. Issues Summary Many of the challenges and issues regarding the future development of Tukwila South have been addressed in the last ten years. The following outlines some of the issues that have been resolved or are likely to be resolved in the future. A. Road Access In 2010, a realigned Southcenter Parkway opened that links the Southcenter area to S. 200th Street through Tukwila South. The new Parkway provides a four lane road, with sidewalks, capable of serving the future build out of Tukwila South. Additionally, in 2013 Segale Properties, LLC realigned S. 178th Street and traffic was moved to S. 184th Place. This new road provides a safer, more gradual access than the old road alignment, which often times had to be closed due to inclement weather. 2 The grading work was originally under PW10 -063, but all work under this permit was transferred to PW10 -064. 6 Kent • `fir • i4c 4 � r '4 r New Soul llc Alter Parkway �C ✓, �•b ',A, L {a1 th? 1 Tukwila South Project Pourlc� ;� �� .4':., . 4..'`f a • ►.it" 4 7 25 26 8 B. Flood Control Tukwila South lies near the Green River and in the past there was a possible risk of flooding. Most of the future development area has been raised to be above the flood elevation. Additionally, levy improvements have been completed along the Green River to reduce the chances of flooding in the area. Not only are these measures important to protect property and lives, but these flood reduction measures help to reduce the costs associated with flood insurance for property and business owners. C. Public Services The property owner and /or the City have installed the needed infrastructure to serve future build out of Tukwila South. Additionally, provisions have been made to relocate the existing Fire Station 51 to serve the area. D. Sensitive Area Preservation With the SAMP and Shoreline Permit, provisions have been made to preserve and in some cases enhance the wetland, streams and shoreline areas in Tukwila South. Many areas of Tukwila South will be preserved as natural spaces in perpetuity. E. Historic Preservation The old Mess Cemetery, owned by the Tukwila Historical Society, is located in Tukwila South. Provisions are in place to preserve the cemetery and access to the cemetery has been maintained. F. Ease of Permitting and Taxation Policy The entitlements already obtained for Tukwila South allow future construction to move ahead quickly. Most future projects will not need to obtain environmental approval since SEPA has already been completed. Future buildings will also only need to obtain administrative design review approval. Like the rest of the City of Tukwila, Tukwila South enjoys a favorable taxation policy compared to the areas, such as Bellevue and Seattle. For example, the City of Tukwila does not have a business and occupancy tax. 111. Challenges Summary While many of the issues associated with build out of Tukwila South have been addressed via the entitlements and agreements in place for the area, there are still challenges facing future redevelopment. A. Lack of Transit Tukwila South lacks connections to the regional transit system. Metro does not provide services along Southcenter Parkway or along S. 200th Street in Tukwila South. The nearest bus route in the area is along Orillia Road, Route #180, which provides bus service between Kent and SeaTac Airport. Sound Transit's current long range plan and proposed updated long range plan also fails to provide adequate transit options for a redeveloped Tukwila South. The lack of transit could impact the ability of Tukwila South to attract office users and technology firms. Many of Tukwila South's competitors, such as Downtown Seattle, Downtown Bellevue, and South Lake Union have good access to various mass transit modes. Staff has included language in the new element for Tukwila South to address this issue. B. City Boundaries The corporate boundaries in Tukwila South are jagged. Interstate 5 and /or Orillia Road should serve as the logical boundary between the City of Tukwila and the City of SeaTac; however, in some cases SeaTac goes east of Interstate 5 and Tukwila also has land west of Interstate 5. This issue creates complexity for permitting, area identification, and emergency response. C. Identity Tukwila South currently lacks its own identity. This most likely can be attributed to the fact that the area lacks development and build out. However, the City will need to ensure that future businesses and residents identify with Tukwila and not with adjacent cities, such as SeaTac or Kent. D. Zoning Cleanup In June of 2014, the City Council adopted the Southcenter Plan (formerly known as the Tukwila Urban Center Plan). Several properties in Tukwila South owned by Segale Properties, LLC are zoned Tukwila Urban Center; however, these projects are not included in the Southcenter Plan boundary. Technically, these properties are not zoned and thus would be considered Low Density Residential under the City's 9 27 28 Zoning Code (TMC 18.08.020). This zoning classification does not make sense and a map amendment should be processed to re- designate the properties as Heavy Industrial with the Tukwila South Overlay. 0, 111111Ai Properties are zoned TUC, but were not included in the TUC Plan. E. Job and Housing Capacity The City of Tukwila is required by King County and the Puget Sound Regional Council to accommodate a certain number of jobs and housing units in the City. The City regularly provides data to both agencies indicating our "capacity" to provide future jobs and housing. It is important to note that "capacity" and forecast are not the same. Capacity is simply the ability of a certain area of the City to provide jobs and housing, once certain elements are factored in. It is possible that the City could have more or less jobs than the capacity the City shows. By 2032, the City is required to be able to provide enough commercial /industrial land area to accommodate 16,193 jobs. This number was initially created prior to the Tukwila South annexation. Since Tukwila South was not in the City, the City could not count future jobs in Tukwila South in order to show that we have sufficient capacity. The EIS completed for Tukwila South indicates that Tukwila South would be capable of accommodating nearly 23,000 jobs. Thus, Tukwila South is vital to the City's ability to meet future job capacity requirements. The City has also estimated that by 2032, Tukwila South could have 700 housing units. Again, this number could be larger and was a conservative estimate. Citywide, the City is required to have capacity to provide 2,084 housing units by 2032. Given that most of Tukwila's residential area is already built out, Tukwila South is important to helping the City meet its housing capacity requirements. Tukwila South will account for nearly one -third of the City's 2032 residential capacity. 10 ATTACHMENT B1 ECONOMIC DEVELOPMENT PURPOSE The overriding goal of this element is the enhancement of the community's economic well- being. Through a series of policy recommendations, the Economic Development Element identifies a means of stimulating economic improvement for business and the community as a whole. It lays out a direction and strategies for dealing with economic variables and adjusting to economic forces that cannot be predicted or controlled. It is a key component to the integration of all elements of the Comprehensive Plan, suggesting ways in which the City and its partners can use effective economic strategies in order to achieve the goals of the Plan. There are three primary ways in which local economic activity can be affected: • Land use and utility planning that determine, within the local infrastructure, the space available for residential and nonresidential development • Directly or indirectly influencing private- sector decisions as to location, operation, and development of business real estate • Helping coordinate public and private sector efforts to enhance the employability and job progression of the residential population. l'he Economic Development Element presents a focused approach to enhancing our City's economic well- being. This approach can be summarized as follows: • Sustain moderate growth • Target high salary industries • Improve the opportunities for education and job acquisition for Tukwila residents • Provide capacity to meet Tukwila's employment targets as set by the Countywide Planning Policies • Encourage growth into certain areas through the use of zoning and developmental regulations • Encourage the retention and growth of existing local firms • [Encourage entrepreneurs and small businesses] 1 City of Tukwila Comprehensive Plan - Community Image Element PC Recommended Draft Z: \DCD n Clerk's \PC Laserfiche Packet \2014 PC Packets \07 -22 -14 and 7- 24- 14 \B1_ECONOMIC DEV--- Element_ to_PC_w_ COMMENTS.docx Comment [BM1]: Third way added to address what economic development can do for residents. Comment [BM2]: The old element discussed code enforcement in Economic Development. This no longer seems proper. All references to code enforcement have been removed. Comment [BM3]: Economic Development is more than just businesses, but also needs to focus on residents. Comment [BM4]: Language added. 29 • Provide efficient and timely administration of City services • [Expand and diversify the City's sources of revenue] The following are activities that the City emphasis in order to accomplish the City's economic development goals: • Respond to specific requests for assistance from local firms • Emphasize business development to encourage existing businesses to expand • Maintain public works and utilities so the City's infrastructure can meet both existing and future needs of the economic sector • Support job enhancement programs to increase residents' employability through coordination of private and public sector activities The following are potential tools available to the City to enhance economic development in the City: • Industrial revenue bonds for certain areas • Multi- family property tax exemption • Targeted government and private resources • Targeted local, state, and federal funds • Use of infrastructure investment to attract new firms and development to designated areas • Funded, staffed, and administered economic development work group • Timely, predictable customer - oriented permitting and City services • Lodging tax for tourism promotion Economic Setting In this way, local government can play an important role in the economic vitality of the community. The policies developed in this element are aimed at implementing that role. The following statistics may be useful in setting the background for the economic development policies. In 2003, the population of Tukwila was 17,270; estimated 2011 population was 19,050. The City's daytime population is estimated between 150,000 to 170,000. Taxes collected in 2003 were estimated to be $28.2 million, which increased to $39.78 million by 2012. During the same period the assessed valuation of the City grew from $3.340 billion to $4.64 billion. In 2002 there were 7,628 housing units; by 2010 this number increased to 7,989 units. 2 City of Tukwila Comprehensive Plan - Community Image Element PC Recommended Draft Z: \DCD n Clerk's \PC Laserfiche Packet \2014 PC Packets \07 -22 -14 and 7- 24- 14 \B1_ECONOMIC DEV--- Element_ to_PC_w_ COMMENTS.docx 30 Comment [BM5]: Language added to reflect the decline that is occurring in the City's sales tax market share. Comment [BM6]: Additional language added regarding job enhancement. Comment [BM7]: This section was completely updated with new data. In 2010, the median age of Tukwila residents was 33.6 years; nearly eight percent of all citizens were older than 65; and 24 percent of the residents were under 18. In 2010, residents of color were 50.1 percent of the population. Foreign -born residents account for 36.2 percent of the population, and over 70 languages are spoken in the Tukwila School District. The median household income in the City in 2010 was $44,271 and is below King County's median income of $66,174. Adjusting for inflation, Tukwila's median income fell between 2000 and 2010. Tukwila's 2000 adjusted median income (in 2010 dollars) was $53,127. Thus, real median income in the City fell 16.67 percent from 2000 to 2010. In 2000, Tukwila had nearly three times as many jobs as it had residents. That number fell to 2.27 in 2010. There were over 2,000 licensed businesses of all types in Tukwila in 2000. The total number of jobs in Tukwila has declined since 2000. In 2000, the City had approximately 48,000 jobs. In 2010, the total number of jobs in the City fell 11.6 percent to just over 43,000. Employment within Tukwila is distributed among a number of different sectors. Service composes the largest percentage of jobs with 32 percent of all jobs. Manufacturing is next with 25 percent ofjobs in the City. In 1991, 56 percent of all jobs in the City were related to manufacturing. In 2002, the number ofjobs in manufacturing dropped to 28 percent. Manufacturing continues to decrease in the City. This trend likely reflects the diminished presence of jobs with Boeing and other manufacturing firms in the City's industrial areas. Retail accounts for 14 percent ofjobs in Tukwila. Warehousing, Transportation, and Utilities make up 12 percent. While Tukwila remains a strong attractor of consumer spending, the City has experienced a significant reduction in taxable retail sales, once adjustments are made for inflation. When adjusted for inflation, taxable retail sales in 2010 were lower than any time within the previous 15 years. The City's sales tax decline began to occur roughly around the late 1990s. Competition for retail sales among regional retail center has grown stronger over the last ten years. ISSUES Current and existing economic trends provide a variety of complex issues for economic development in the City of Tukwila: • Provide access to the regional highway, transit and air transportation system in a way that does not handicap local property development and redevelopment efforts 3 City of Tukwila Comprehensive Plan - Community Image Element PC Recommended Draft Z: \DCD n Clerk's \PC Laserfiche Packet \2014 PC Packets \07 -22 -14 and 7- 24- 14 \B1_ECONOMIC DEV--- Element_ to_PC_w_ COMMENTS.docx 31 • Explore possible City actions to increase the median income of Tukwila's residents, including support for entrepreneurship, small business startups, and vocational training. • Establish coordinated transit hubs in the Tukwila Urban Center that efficiently mix modes of travel and stimulate development of real estate associated with transportation facilities • Study and understand the factors causing the inflation- adjusted reduction in the City's overall taxable retail sales. • Support further enhancement of commercial and residential areas in the Tukwila International Boulevard neighborhood • Foster environmental remediation, land conversion and redevelopment in the Manufacturing Industrial Center (MIC) and Interurban Avenue areas • Increase development, intensity, and the diversity of uses in the Southcenter area, including the development of housing and entertainment • Develop policies, programs, projects and plans that include input from diverse groups within the residential and business community • Seek opportunities to join other organizational entities to accomplish effective public - private partnerships to promote economic development in the City • Enhance regional recognition of Tukwila as an economic hub, promoting its businesses and focusing on its positive business climate. • Explore strategies to maintain a favorable and diverse tax base to support the needs of our daytime and nighttime populations • Meet the needs of our residential neighborhoods while maintaining the economic health of our business community • Ensure that adequate public services are in place to support existing and proposed commercial, mixed use and industrial developments • Fund infrastructure and services by maintaining a solvent and diversified revenue stream GOALS AND POLICIES Community Well -Being Goal 2.1 Tukwila has a strong role as a regional business and employment icenter] which / allows it to enhance and promote the community's well- being. Policies 4 City of Tukwila Comprehensive Plan - Community Image Element PC Recommended Draft Z: \DCD n Clerk's \PC Laserfiche Packet \2014 PC Packets \07 -22 -14 and 7- 24- 14 \B1_ECONOMIC DEV--- Element_ to_PC_w_ COMMENTS.docx 32 Comment [BM8]: Old language reflected one transit hub; however, the Urban Center will likely have two. Comment [RF9]: Strategic Plan3.A.3 Comment [RF10]: Combines existing goal 2.1 with Strategic Plan 3.A 2.1.1 Develop the tools needed to improve the economic deveiopment]climate. 2.1.2 Strengthen Tukwila's engagement and partnership with other jurisdictions, educational institutions, agencies, economic development organizations, and local business associations to encourage business retention and growth, and implement interlocal and regional strategies. 2.1.3 Expand access to quality foods and groceries for Tukwila residents. 2.1.4 Monitor City actions and impacts on the local economy and review economic development incentives for all sizes of businesses. 2.1.5 Continue to fund economic development staff to serve as a single contact point and information source for the business community. 2.1.6 Leverage capital improvement funds to encourage in -fill, land assembly, redevelopment, and land conversion for family -wage jobs, but only if concurrent with substantial private actions. 2.1.7 Partner with the private sector to fund infrastructure as part of a sub -area plan to encourage redevelopment and as an inducement to convert outdated and underutilized land and buildings to high - valued and /or appropriate land uses. 2.1.8 Consider nonfinancial ways (such as brokering and interlocal agreements) to assist industrial land owners to comply with state and federal government environmental remediation requirements. 2.1.10 Consider a public - private partnership to examine creating a small business incubator space in the City. 2.1.11 Improve Tukwila' s image, participation, and influence in regional forums, especially those that influence Tukwila' s future and interests. 2.1.12 Promote understanding of the interdependencies and mutual interests among Tukwila businesses, residents and the City of Tukwilal. 2.1.13 Promote an economic climate that supports business formation, expansion and retention, emphasizing the importance of the City' s entrepreneurs and small (businesses] in creating jobs_ 2.1.14 Seek funds from non -City sources for the City to directly encourage economic development. 2.1.10 Design and support human service programs, such as partnerships for interns and job training to enhance the economic well -being of the City' s residents_ 2.1.11 Promote Tukwila as a regional confluence of commerce, housing and entertainment, 5 City of Tukwila Comprehensive Plan - Community Image Element PC Recommended Draft Z: \DCD n Clerk's \PC Laserfiche Packet \2014 PC Packets \07 -22 -14 and 7- 24- 14 \B1_ECONOMIC DEV--- Element_ to_PC_w_ COMMENTS.docx Comment [NG11]: Local business Comment [RF12]: Strategic Plan Goal 3.A.4 Comment [RF13]: Per Strategic Plan Goal 3 and King County Countywide Planning Policy EC -7 33 2.1.12 Promote and preserve economic use of industrial lands outside the Manufacturing Industrial Center (MIC) through appropriate buffering requirements and use restrictions. 2.1.13 Include standards in the development regulations for industrial uses that adequately mitigate potential adverse impacts on surrounding properties and public facilities and services. 2.1. (Actively promote development in the Southcenter area by supporting existing uses, proactively developing programs and incentives to attract new businesses, investing in infrastructure and public amenities, and encouraging business owners and developers to invest in the quality of both the built and natural environment. Implementation Strategies • Consider preparing overall area environmental impact statements for the Interurban /West Valley Highway Corridor and Tukwila International Boulevard area • Develop a freight mobility plan that addresses the efficient and safe movement of freight in the City, while also ensuring that impacts to adjacent land uses are reduced and, where possible, eliminated • Zoning regulations that facilitate commercial in -fill development and redevelopment consistent with the Comprehensive Plan vision • Take joint owner - City- regulatory agency environmental remediation actions to facilitate brownfield redevelopment and in -fill • Focus public infrastructure investment to provide capacity in areas targeted for growth • Create Local Improvement Districts to finance specific transportation and utility in -fill improvements • Identify and eliminate confusing or outdated regulations • Encourage redevelopment through an informed business and real estate community • Support collaborative marketing initiatives with businesses • Develop an Economic Development Strategic Plan • Partner with non - profits or the private sector to develop a facility for food - related workforce development and entrepreneurship training 6 City of Tukwila Comprehensive Plan - Community Image Element PC Recommended Draft Z: \DCD n Clerk's \PC Laserfiche Packet \2014 PC Packets \07 -22 -14 and 7- 24- 14 \B1_ECONOMIC DEV--- Element_ to_PC_w_ COMMENTS.docx 34 Comment [BM14]: Relocated from the old Southcenter Element. • Support environmentally sustainable practices by offering energy and resource conservation and solid waste and energy reduction assistance programs for businesses, property owners and managers. • Encourage businesses to incorporate environmental and social responsibility into their practices • Increase communication between the City of Tukwila and Tukwila businesses • Support business skills training for entrepreneurs and small businesses through partnerships with universities, colleges, community colleges and other third parties. • Support the food economy, including production, processing, wholesaling and distribution, as a means to provide job training, employment opportunities and increased access to healthy food for the diverse community • Support public /private partnerships to enhance existing and future business activity in the Urban Center 7 City of Tukwila Comprehensive Plan - Community Image Element PC Recommended Draft Z: \DCD n Clerk's \PC Laserfiche Packet \2014 PC Packets \07 -22 -14 and 7- 24- 14 \B1_ECONOMIC DEV--- Element_ to_PC_w_ COMMENTS.docx Comment [RF15]: Multi- county planning policy MPP -Ec7 35 36 ATTACHMENT B2 COMPREHENSIVE LAND USE PLAN ECONOMIC DEVELOPMENT ELEMENT BACKGROUND MEMO 2015 GROWTH MANAGEMENT ACT UPDATE to the COMPREHENSIVE PLAN 1. Introduction The City of Tukwila is committed to the economic well -being of its residents, property owners, and businesses because an adequate tax base is necessary to help achieve the City's vision for the future. Cities in Washington State have a limited authority in encouraging economic development. The most obvious role is for the City is to provide adequate services and infrastructure to complement the retail, manufacturing uses, offices, and residences that are located in the City. The City's plans, programs, policies, taxes, and service levels can encourage economic activity. Historically, the City of Tukwila has had a diverse and growing economic base primarily because of: 1. Its location; 2. Commercial and industrial properties located on level land; 3. Access to regional and global transportation network; 4. Lack of a Business and Occupancy Tax; and 5. Small responsive government. Tukwila has a major concentration of retail and services businesses. In the past, Tukwila also had a large concentration of manufacturing in the City; however, manufacturing in the City is declining. Tukwila's proximity to Sea -Tac Airport allows it to have a strong and growing lodging industry. Tukwila has a significant job and retail base, much larger than the City's nighttime population. Tukwila's economic well -being is also facing some challenges. Tukwila's median income is lower than the median for King County and Tukwila residents' median incomes are not keeping pace with inflation. While King County as a whole is well educated, Tukwila's residents have a level of income below the average education attainment for the County. This puts Tukwila residents at a disadvantage for attaining higher paying jobs. The City has also seen a gradual loss in sales tax market share to surrounding cities. In 2012, Tukwila created a Strategic Plan and one of the five goals and objectives was "A Diverse and Regionally Competitive Economy." The City's economic development efforts will continue to be multi - pronged, addressing three aspects of the City's economy: 1 Economic Development Background Memo 37 38 1. Protecting the City's role as a strong regional retail center and preparing for the retail market of the future. 2. Supporting the retention and expansion of the City's commercial and industrial businesses. 3. Cultivating the success of the City's entrepreneurs and small businesses, including businesses owned by refugees, immigrants, and non - native English speakers. 11. Demographic Overview A. Current Population 120,000 100,000 80,000 60,000 40,000 20,000 Total Population (including annexations) of Select South King County Cities. Kent ,200 Renton 92,590 37.960 11 -74 1990 52 31,881 25,496, 17,181 2000 47,66[: ien 27,110 SeaTac . 19.) 50 2011 Source: City of Tukwila's Strategic Plan. Note: the cities of SeaTac and Burien became cities in the mid -1990s so population data for 1990 is unavailable. As indicated in the chart above, Tukwila has experienced a very low growth rate. The chart below shows the annual growth rate of select south King County cities and the County as a whole. 2 Economic Development Background Memo 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% Burien Source: City of Tukwila's Strategic Pla n. Kent Renton Tukwila SeaTac King County Tukwila's annual growth rate is slightly higher than the County's annual growth rate, but is significantly lower than most of the adjacent cities. While Tukwila's population increased nearly 60% from 1990 to 2011, the populations of Kent and Renton were up 210% and 120% respectively. Both Kent and Renton completed major annexations during this time, but those annexations do not account for the majority of the growth. B. Daytime Growth For every one person that lives in Tukwila, seven to eight people visit the City every day to work or shop. Tukwila's daytime population is estimated to be between 150,000 to 170,000 persons, including approximately 16 million shoppers a year to Westfield Southcenter, the largest mall in the Pacific Northwest. 3 Economic Development Background Memo 39 40 C. Housing Tukwila and King County Rental- Occupied Housing Unit, 1990 -2010 70% 60% 50% .. 40% .. 30% 20% 10% Source: City of Tukwila's Strategic Pla n. 61% g V000,00/00„PII li0. 57% 58% 41% 1990 40% 2000 47% King County 2010 The percentage of Tukwila's residents who choose to rent is higher than the rate in the County and other south King County cities. Nationwide more Americans are choosing to rent homes than buy'. Tukwila's population is still very mobile, with nearly 24% of households relocating within one year. Compared to South King County overall, Tukwila housing is relatively affordable, particularly for purchasing a home. However, renting is far more affordable across income categories rather than purchasing a home. Just under half of Tukwila homes are affordable to purchase for residents earning at least the median income, while less than a quarter of homes are affordable for residents earning less than 80% of the median household income. Nearly all of Tukwila rental units are affordable for residents earning at least the median household income, while 63.2% of rental units are affordable for residents earning under 80% of the median household income. 111. Land Value Tukwila's land values continue to increase, with land near major transportation corridors having the highest values. Tukwila's commercial land values are comparable with other south King County areas. Tukwila's land prices continue to be lower than most areas of Seattle and Bellevue. The total King County assessed value for the City in 2012 was $4.6 billion, up nearly 40% since 2003, when the total King County assessed value was $3.3 billion. This increase likely reflects major new projects in the City such as the Westfield Southcenter Mall Expansion and Southcenter Square development. 1 http: / /www.marketwatch.com/ story/ more - people- choosing -to- rent - not - buy- their - home - 2011 -02 -08 4 Economic Development Background Memo Land Value per Square Foot 2006 and 2011) 2006 Source: City of Tukwila's Strategic Pla n. IV. Employment 2011 One area of continued concern is that total employment in the City has continued to fall for over ten years. Tukwila's job decline actually began before the Great Recession and the rate of decline increased with the onset of the recession in 2008. People from throughout the region come to Tukwila to work. A significantly larger number of people work in Tukwila than actually live in the City. In 2010, Tukwila had 43,126 jobs; however, the City only had 7,989 housing units. Tukwila's 5.40 job to housing ratio in much higher than the County average and that of other south King County cities. Employees who work in Tukwila live throughout the central Puget Sound region, with south and west Seattle, Renton, and Kent having the highest concentrations of Tukwila employees. Residents of Tukwila work primarily in Tukwila and surrounding cities or in downtown Seattle and Bellevue. Tukwila's residents continue to make less than the County average and median income as fallen, when adjusted for inflation. The median household income in the City in 2010 was $44,271 and is below King County's median income of $66,174. Adjusting for inflation, Tukwila's median income fell between 2000 and 2010. Tukwila's 2000 adjusted median income (in 2010 dollars) was $53,127. Thus, real median income in the City fell 16.67 percent from 2000 to 2010. 5 Economic Development Background Memo 41 42 Where People Who Work in Tukwila Live 13n1,,b, idge Where People Who Live in Tukwila Work 1,14nd ttlatul Source: City of Tukwila's Strategic Plan. Employment within the City is distributed among a number of different sectors. In 2010, the service industry accounted for the largest sector, followed by manufacturing; retail and warehousing, transportation, and utilities. One noticeable trend that has been occurring over the last 15 years is the decline of manufacturing jobs in the City. In 1991, 56 percent of all jobs in the City were related to manufacturing. In 2002, the number of jobs in manufacturing dropped to 28 percent. Manufacturing continues to decrease in the City. This trend likely reflects the diminished presence of jobs with Boeing and other manufacturing firms in the City industrial areas. Manufacturing jobs tend to pay higher than jobs in the service and retail sectors. Employment in the City is largely clustered in the Southcenter area of the City and the North Tukwila Manufacturing Industrial Center (MIC). Major Employment Districts of the City District Acreage % of Total City Area Total # of Businesses Total Number of Jobs % of jobs in the City. Jobs Per Acre. Job Losses and Gains between 2000 and 2010 Southcenter Area 847 acres 13.9% 771 17,399 40% 20.54 North Tukwila MIC 961 acres 15.8% 147 13,499 31% 14.04 Source: PSRC's Regional Centers Monitoring Report, 2013 Edition. 6 Economic Development Background Memo The City has the capacity to accommodate an additional 38,620 jobs in the City. Nearly 60 percent of these jobs will be located in Tukwila South, which was just annexed into the City in 20102. After Tukwila South, North Tukwila MIC and the Southcenter area have the highest capacity to accommodate future job growth3. The City has sufficient capacity to accommodate its share of regional job targets. V. Retail Sector Tukwila has been the center of commerce and trade for over a hundred years. In 1967, with the opening of Southcenter mall, the City became a dominant retail center right on the edge of the City of Seattle. As shown in the map below, the Southcenter area of the City is one of the largest clusters of retail space in south King County. In the City as a whole, there is over 4.85 million square feet of retail space in the City. Despite major new developments, such as Westfield Southcenter Mall Expansion and Southcenter Square Development, the City has been losing market share in total taxable retail sales, when adjusted for inflation. In 1994, the City of Tukwila generated just over $1.5 billion (adjusted to 2010 dollars) in taxable retail sales. Prior to the Great Recession the City's total taxable retail sales had declined below $1.5 billion despite the fact that many of the City's competitors (Lynnwood, Renton and Issaquah) saw a significant increase in total taxable retail sales. By 2010, taxable retail sales were down $300 million when compared to adjusted 1994 taxable sales. The loss of market share is also compounded by the fact that the area's population has consistently risen every year. Not only is the City losing market share in taxable retail sales, but the City is also not capturing new sales. 2 City of Tukwila's 2006 Buildable Lands Report, updated in 2014. 3 These numbers show capacity only and do not reflect actual projected growth. 7 Economic Development Background Memo 43 44 Retail Square Footage in south King County, 2009 JJJJ',.G l�pto .. Lift 111,001.. C)CM,1 01 - 1. eauCI {::.10 •:I. + 8 Economic Development Background Memo V. Office and In dustrial Sect or Office Square Re a to 25,000 • 25301 .50«+ • 50,001 -100,000 RCm1.B +.mo 4+ • 1 2 Miles • O rc Square Footage in south King county t-,74, • • a .0 6.110 . , • I e,v u • • et° • & • • • • 7 %4 • Tukwila has not had an active oic market in several yarsbut » has shown some improvement as vacancies hav decreased over the Q# few years. In 2004, Tukwila had 600,000 squa e feet ovacant 9 Economic Dev elopment Backg round Memo 45 46 office space. By 2012, the number had been reduced to just over 300,000 square feet. Office space within Tukwila is concentrated in the north end of the City. Expanded office presence may occur in the south part of the City as the Tukwila South project moves forward and as the Southcenter Plan begins to be implemented. Overall, there is a large amount of office space of all classes in south King County. Much of it is located in Renton and the Kent Valley. 10 Economic Development Background Memo Industrial and Warehouse Square BUlding Square Feet LID m 25,000 25 „011 - 1100,000 1100,001 - 350,000 350,001 - 750,000 0,001 * Building Type Iriosrrial 3relh use 1 2 • • Footage in South King County, 2009 • 4 • ti ea'ttie.. Z • • • • • •,14,llevue • • • • s3 •` • • ;r • co.-- • •.. • •. s • ; • . .l.. • e. •• • • Renton • fe • • 4 •'� • ;T • 0 CO • Tukwila, and the rest of the Duwamish and Kent Valleys, is a center for industrial and warehouse uses within the Puget Sound region. Industrial buildings within Tukwila are larger and clustered in the north end of the City, by Boeing Field, rather than in the Duwamish Valley. Warehouse uses are more concentrated in the southern portion of the City. 11 Economic Development Background Memo 47 48 VII. City Revenue The City of Tukwila relies on various source of revenue to fund services and capital expenditures in the City. Included as an attachment to this report are several pages from the City's Comprehensive Annual Financial Report (CAFR) that provides various financial information for the City. Overall, the City's total revenue has remained nearly consistent over the last nine years just over $51 million. The best year during this period was 2011 when the City's collected just over $68 million in total revenue. The worst year was 2008 when the City collected just over $49 million in revenue. The decrease in 2008 can likely be attributed to the Great Recession and pullback in consumer spending. General Governmental Tax Revenues by Source 2003 -2012 Fiscal Year Property Sales & Use Utility Excise Business Other Total Taxes 2003 $ 9,854,007 $16,171,756 $ 1,591,922 $3,500,318 $ 431,188 $ 437,031 $31,986,222 2004 $10,493,728 $16,293,960 $ 2,309,787 $4,068,110 $ 530,725 $ 451,863 $34,148,173 2005 $10,627,410 $16,887,845 $ 2,646,356 $3,222,936 $ 408,798 $ 831,530 $34,624,875 2006 $11,018,846 $17,591,260 $ 2,930,332 $4,938,515 $ 402,784 $ 920,077 $37,801,814 2007 $11,177,532 $19,355,867 $ 3,666,079 $4,124,168 $ 405,973 $ 931,173 $39,660,792 2008 $11,245,973 $17,709,319 $ 3,934,210 $3,003,438 $ 475,500 $1,089,344 $37,457,784 2009 $12,190,219 $14,585,015 $ 6,172,569 $2,824,407 $ 738,341 $ 656,730 $37,167,281 2010 $13,188,942 $14,251,312 $ 6,134,494 $2,488,357 $ 727,151 $ 301,867 $37,092,123 2011 $13,427,139 $16,113,584 $ 5,424,643 $1,780,294 $ 667,064 $ 622,955 $38,035,679 2012 $14,072,015 $15,441,683 $ 4,001,385 $3,201,098 $2,497,6064 $2,288,822 $41,502,609 % Change From Start Year to End Year 42.8% -4.5% 151.4% -8.5% 479.2% 423.7% 29.8% The table above shows the City's revenue by source and year. As was discussed earlier, the taxable retail sales in the City have been in decline. This decline can also been seen in the 4.5% reduction in sales tax collected in 2012 versus 2003. The City's sales tax rate of .84% has remained constant since 2003. Sales tax still makes up a large portion of the City's total revenue; however, its total share has been decreasing due to loss in taxable sales market share and increase in revenue generated by other sources. 4 The increase in revenue collected represents the City's enactment of the RGRL. 12 Economic Development Background Memo Sales Tax Collected by Industry, 2012 Major Industry Amount Collected Percentage Retail Trade - Clothing and Accessories $ 2,082,930 13.85% Retail Trade -GM $ 2,000,865 13.30% Retail Trade - Miscellaneous $ 1,703,741 11.33% Retail Trade - Furniture /Home Furnishings $ 1,537,143 10.22% Retail Trade - Resturants $ 1,472,343 9.79% Wholesale - Durable /Non - durable goods $ 1,077,613 7.16% Construction and Contracting $ 961,125 6.39% Service Industries - Business $ 928,610 6.17% Retail Trade - Automotive /Gas $ 690,076 4.59% Retail Trade - Building Materials $ 516,861 3.44% Service Industries -Hotel $ 487,977 3.24% Transportation, Communications and Utilities $ 432,608 2.88% Manufacturing $ 390,252 2.59% Other $ 381,693 2.54% Service Industries -Other $ 234,870 1.56% Finance, Insurance and Real Estate $ 143,792 0.96% Total Retail Sales Tax Collected $ 15,042,499 The table above shows sales tax collected by major industry type. Retail Trade industry generates the most taxable retail sales of any industry in the City. A year by year breakdown since 2003 is provided in in the CAFR pages provided. Property taxes collected in the City continue to rise. Boeing and Westfield Southcenter pay the most in property taxes per year. Complete property tax information in the CAFR pages provided. 13 Economic Development Background Memo 49 50 VIII. S. W.O. T Analysis A SWOT Analysis is fairly common practice in the private sector in examining the Strengths, Weaknesses, Opportunities, and Threats to a business, product line, or strategic plan. Economic Development staff, working with the City's business community, put together the following SWOT table as part of the City's Comprehensive Plan Update. It is important to note that these strengths, weaknesses, opportunities, and threats, are perceived and, at this time, are not supported by specific analysis. Perception of strengths, weaknesses, opportunities, and threats can influence decisions as much as actual issues. It is also important to note that an issue can be considered is several categories. For example, Tukwila Pond is listed as a strength, weakness, and opportunity. Strengths: 1. Fabulous Location (access to freeways) 2. Proximity to SeaTac Airport. 3. Tax and Regulatory Structure 4. Seattle Sounders and Starfire Sports 5. Westfield Southcenter Mall, largest mall in the Pacific NW. 6. Tukwila South 7. Best destination for large furniture stores (big draw) 8. Tukwila Pond -could be strength 9. Transit Stations 10. Accessibly to City Staff and Elected Officials Opportunities: 14 1. Seattle Sounders and Starfire Sports. 2. Tukwila Pond 3. Community Colleges 4. Boeing 5. Washington Youth Soccer 6. Grow the Tukwila name 7. Trails along Green River -bike pedestrian bridge 8. Take advantage of the River as an amenity 9. Partner with adjacent cities (we need to work together versus compete) 10. Clustering of businesses Weaknesses: 1. Crime and the perception of crime. 2. Visual appearance of the City. 3. Superblocks in the City's Southcenter Area 4. Tukwila Pond 5. Lack of Chamber Signage 6. Lack of rooftop area 7. Evening population, lack of a nightlife Threats: 1. Traffic Congestion 2. Perceived Threat, Howard Hanson Dam 3. Insurance costs associated with flood insurance 4. Lack of productivity 5. Minimum wage increase 6. Connective notion of surrounding cities Economic Development Background Memo IX. Economic Development Activities Policy 2.1.3 of the City's Comprehensive Plan states the City "[should] identify a single contact point and information source for the business community." In 2004, the City hired its first staff person to focus solely on economic development activities and to serve as a contact person for businesses. In 2014, the Mayor, with support of the City Council, reorganized staff in the Mayor's Office and transferred a Senior Planner from the Department of Community Development to provide more resources for economic development activities. The coming years will be very exciting time for the Economic Development Work Group as it gets fully established and organized. The following outlines some of the economic development activates that are currently taking place or that will be occurring in the near future. A. Soundside Alliance The City of Tukwila is a member of the Soundside Alliance group, which includes the cities of SeaTac, Burien, Normandy Park and Des Moines. Additionally, Highline College, the Southwest Chamber of Commerce and the Port of Seattle are also members. The Alliance focuses on marketing and economic development activities for the southwest area of King County. The Alliance current major project is completing a Workforce Study. B. Tukwila Tourism Promotion Area Earlier this year, Economic Development staff negotiated an interlocal agreement with the cities of SeaTac and Des Moines to form a Tourism Promotion Area among the three cities. The TPA will be funded by a per night room fee in certain hotels and motels. Funds generated will be used to support additional tourism marketing efforts. The funds will be administered by a Public Development Authority set up by the City of SeaTac. C. Seattle Southside Visitor Service Economic Development currently oversees the Seattle Southside Visitor Services (SSVS). SSVS, using lodging tax funds, conducts various activities to increase tourism activities in the cities of SeaTac, Tukwila, and Des Moines. Earlier this year a visitor center opened in the Westfield Southcenter Mall. Other activities include operating a shuttle connecting SeaTac hotels /motels to Tukwila's Urban Center. Most of SSVS activities will be merged with the TPA discussed above. D. Tukwila Village The development of the Tukwila Village site has been led by Economic Development. A ground breaking for the project is scheduled for August 1, 2014. E. Small Business Development The City of Tukwila, along with other Soundside Alliance cities, supports the Small Business Development Center (SBDC) at Highline College. SBDC provides support and guidance for individuals wishing to start a business as well as support for existing small businesses. F. Southcenter Marketing Partnership As was discussed above, over the last 15 years the City has seen a decline in market share for taxable retail sales. To combat the loss in market share, the Economic Development group will be launching the Southcenter Marketing Partnership whose purpose is to market the Southcenter area 15 Economic Development Background Memo 51 52 as a whole. Many of the City's competitors, such as Downtown Seattle and Downtown Bellevue already have similar programs. G. Workforce Development Economic Development has started to work with regional partners to improve the "employability" of Tukwila residents. 16 Economic Development Background Memo attachment b2.a comprehensive annual financial report CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 5 GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE LAST TEN FISCAL YEARS Fiscal Year ciperty Sales & Use Utility(a) Excise Business Other(b) Total Taxes 2003 $ 9,854,007 $ 16,171,756 $ 1,591,922 $ 3,500,318 $ 431,188 $ 437,031 $ 31,986,222 2004 10,493,728 16,293,960 2,309,787 4,068,110 530,725 451,863 34,148,173 2005 10,627,410 16,887,845 2,646,356 3,222,936 408,798 831,530 34,624,875 2006 11,018,846 17,591,260 2,930,332 4,938,515 402,784 920,077 37,801,814 2007 11,177,532 19,355,867 3,666,079 4,124,168 405,973 931,173 39,660,792 2008 11,245,973 17,709,319 3,934,210 3,003,438 475,500 1,089,344 37,457,785 2009 12,190,219 14,585,015 6,172,569 2,824,407 738,341 656,730 37,167,281 2010 13,188,942 14,251,312 6,134,494 2,488,357 727,151 301,867 37,092,122 2011 13,427,139 16,113,584 5,424,643 1,780,294 667,064 622,955 38,035,681 2012 14,072,015 15,441,683 4,001,385 3,201,098 2,497,606 2,288,822 41,502,608 change 2002-2011 42.8% -4.5% 73.2% -8.5% 479.2% 423.7% 29.8Vo, Notes: ov Utility taxes enacted beginning in 2003 for electric, natural gas, cable and telephone utilities are assessed at rates of 6.0%. A utility tax was added in 2009 for solid waste and recycling assessed at a 6.0% rate. A utility tax rate of 10.0% was added in 2010 on the City's water, sewer, and stormwater utilities. (5) "Other Taxes" include a hotel/motel tax, penalties and interest on delinquent taxes and other miscellaneous fax revenues. Source: Tukw ila Finance Department CI Other O Business Tax O Excise Tax o Utilty Tax Sa les & Use Ta x O Property Tax 54 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 144 CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 6 PROPERTY TAX LEVIES AND COLLECTIONS LAST TEN FISCAL YEARS Taxes Levied for Fiscal Year Fiscal Year Collected Within the Fiscal Year of the Levy Total Collections to Date Collections in -, mount. % of Levy Subsequent Years , Amount Vci of Levy 2003 $ 10,136,315 $ 9,924,909 2004 10,489,114 10,345,276 2005 10,731,724 10,593,753 2006 10,973,030 10,844,728 2007 11,177,532 10,994,127 2008 11,411,293 11,194,247 2009 12,283,193 12,017,213 2010 13,234,489 13,152,036 2011 13,385,080 13,225,338 2012 13,705,220 13,521,621 Source: King County Office of Finance 97.91% $ 98.63% 98.71% 98.83% 98.36% 98.10% 97.83% 99.38% 98.81% 98.66% 145 210,119 $ 10,135,028 143,328 10,488,604 137,447 10,731,200 124,953 10,969,681 181,457 11,175,584 213,805 11,408,051 255,352 12,272,564 38,253 13,190,289 91,997 13,317,336 13,521,621 99.99% 100.00% 100.00% 99.97% 99.98% 99.97% 99.91% 99.67% 99.49% 98.66% 55 CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION CllYOFTUKVV|U\.WASHINGTON SCHEDULE 7 ASSESSED AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY LAST TEN FISCAL YEARS Fiscal Year Real Property,- . Total Direct Tax Rate 2003 $ 2.832,422.720 $ 471,448.140 $ 80,219.849 $ 3,384090J03 $ 3.10754 2004 2.916.855.190 447.089,098 77.169,236 3,441,123.525 3.11712 2005 3.091,238.279 457.546,448 61779040 3,610.558787 3.03706 2006 3,399,709,737 482.100.071 88.123,704 3.947933.512 2.84083 2007 3.853�80,774 509,151,926 87,410,974 4,450,243,674 2.56911 2008 4,470,042,539 595,268,205 110,399,231 5,175,709,975 2.37324 2009 4.122.90.628 746710.751 112,779972 4,982,452.351 2.66345 2010 3.950.829,851 717,795,417 119,827.058 4,788,452.320 282566 2011 3.833.295.885 712,607.656 129,726.102 '4,G75,6o9J48 2.95408 2012 3J78.571J09 736,480.616 134,138,983 4,649191,308 2.98778 Note: *ReaI personal, and state public service property have been assessed at 100%of the estimated value. Source: King County Departnnt of Assessments $6,000,000,000 $5'000,000,000 $4,000,000,000 $3'000\000,000 $2,000,000,000 $1,000'000,000 $- Assessed Value By Type 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 o Public Utilities E3 Personal Property 13 Real Property 146 CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 8 PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS (PER $1,000 OF ASSESSED VALUATION) LAST TEN FISCAL YEARS - -CITY OF TUKWILA-- Fiscal Year Special! Levy Levy Total Energency "` Tukwila; Port of Medical School Dist = Flood Hospital NWA State ` County1°> . ' Seattle" Service #406 ' ' Control District #1 Total 2003 $3.10754 $ $3.10754 $2.75678 $ 1.96799 $0.25402 $ 0.23717 $ 5.05267 $ 0.04669 $ 0.09200 $13.51486 2004 3.11712 3.11712 2.68951 1.91484 0.25321 0.23182 5.04535 0.04658 0.09039 13.38882 2005 3.03706 - 3.03706 2.49787 1.86293 0.23330 0.21982 5.01637 0.04482 0.59000 13.50217 2006 2.84033 2.84033 2.32535 1.75139 0.23158 0.20621 4.78874 0.04212 0.55652 12.74224 2007 2.56911 - 2.56911 2.13233 1.66106 0.22359 0.30000 4.73164 0.10000 0.50854 12.22627 2008 2.37324 - 2.37324 1.96268 1.51508 0.19700 0.27404 4.12360 0.09123 0.47141 11.00828 2009 2.66345 - 2.66345 2.22253 1.74587 0.21597 0.30000 3.89183 0.10514 0.53290 11.67769 2010 2.82566 - 2.82566 2.27990 1.90797 0.22366 0.30000 5.03380 0.10976 0.55753 13.23828 2011 2.95408 - 2.95408 2.42266 1.98580 0.22982 0.30000 5.44659 0.11616 0.50372 13.95883 2012 2.98778 - 2.98778 2.56720 2.11172 0.23324 0.30000 5.69832 0.13210 0.50000 14.53036 Note: ( °) Includes King County Library District tax and Ferry Source: King County Department of Assessments $3.50000 $3.00000 $ 2.50000 $2.00000 $1.50000 $1.00000 $0.50000 $- Direct Property Tax Rates 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 147 57 CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 9 PRINCIPAL PROPERTY TAXPAYERS CURRENT YEAR AND NINE YEARS AGO 'Name Boeing Company WEA Southcenter LLC La Pianta LP /Segale Properties KIR Tukw ila 050 LLC /KIMCO E Property Tax Dept Walton CWWA Eproperty Tax Incorporated (McElroy) Boeing Employees Credit Union Sea -Tuk Warehouse LLC Wig Properties LLC (JC Penney) Anne Arundel Apartments LLC Jorgensen Forge Corporation Federated Department Stores (Macys) Puget Sound Energy /Gas - Electric Southcenter Corporate Square BRCP Riverview Plaza LLC Koar - Seatac Partners LP (Embassy Suites) Merrill Creek Holding LLC (Kenw orth Motors) CHA Southcenter LLC (Doubletree Inn) Harnish Group lncorporated Low e's HW Incorporated Sterling Realty Organization Hill Investment Company Qwest Corporation (US West Communications) AMB Institutional Alliance Group Health Cooperative Heitman Calwest Industrial TOTALS ype of Business. Airplane company Department Stores Com r ercial Properties Conrnerciai Properties Commercial Properties Investment Property Credit Union Food Distribution Department Stores Apartments Steel Manufacturer Department Stores Dectric /Gas Utility Hair Loss Center Commercial Properties Lodging Truck Manufacturer Lodging Truck Equipment Home Improvement Commercial Properties Commercial Properties Telephone Utility Commercial Properties Healthcare Adnvin Connzrcial Properties Property Management rcent of 2012 Total 012 Assessed` ". Assessed - 2003 Assessed Valuation Valuer °1;' Valuation Percent of 2002 Total Assessed is Value) ." 12.9% 3.9% 2.0% $ 490,724,957 10.56% $ 434,871,892 295,766,166 6.36% 132,667,647 161,151,755 3.47% 67,619,800 81,486,500 1.75% 66,723,700 1.44% 58,562,300 1.26% 19,438,600 0.6% 41,292,565 0.89% 58,056,588 1.7% 34,167,200 0.73% 18,332,500 0.5% 32,877,852 0.71% 10,694,100 0.3% 30,034,300 0.65% 29,667,335 0.64% 9,367,255 0.3% 29,561,600 0.64% 33,668,500 1.0% 26,771,162 0.58% 21,770,807 0.6% 26,070,700 0.56% 25,353,700 0.55% 22,718,522 0.49% 16,821,766 0.5% 20,112,600 0.43% 15,029,000 0.4% 17,277,300 0.37% 16,754,400 0.5% 17,150,770 0.37% 10,135,918 0.3% 16,521,414 0.36% 15,273,613 0.5% 14,292,600 0.31% 7,445,700 0.16% 6,007,100 0.2% 5,170,472 0.11% 19,556,132 0.6% 0.00% 73,517,700 2.2% 0.00% 30,012,408 1.0% 0.00% 43,561,900 1.4% 0.00% 42,612,000 1.4% 1,550,901,170 (= 33.36% $ 1,095,769,626 32.8 %.: Notes: r °) In 2012 the total assessed property value in the City of Tukwila was $4,649,191,308. ro) In 2003 the total assessed property value in the City of Tukwila was $3,384,090,709. Source: King County Department of Assessments 148 58 CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION 149 CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 10 RETAIL SALES TAX COLLECTIONS BY SECTOR LAST TEN FISCAL YEARS page 1 of2 Major Industry Sector 2003 - ' = = 2004 2005(a) Construction and Contracting Finance, Insurance & Real Estate Manufacturing Transportation, Communications & Utilities Wholesale - Durable /Non - durable Goods Retail Trade - General Merchandise Retail Trade - Furniture /Home Furnishings Retail Trade - Miscellaneous Retail Trade - Clothing & Accessories Retail Trade - Restaurants Retail Trade - Automotive /Gas Retail Trade - Building Materials Service Industries - Business Service Industries - Hotels Service Industries - Other All Other Categories Total Retail Sales Tax! Collections $ 1,119,595 54,992 520,474 377,596 1,761,749 2,545,631 2,304,037 1,723,147 1,197,591 933,886 847,864 763,013 530,833 361,789 507,935 292,827 $ 958,758 82,794 446,965 387,148 1,862,528 2,574,671 2,405,967 1,735,045 1,247,109 1,031,625 982,413 850,109 488,857 355,514 486,215 288,169 $ 676,427 102,130 503,778 384,703 2,337,018 2,563,103 2,342,553 1,497,474 1,636,183 1,072,275 980,006 815,379 979,752 406,547 278,041 188,540 15,842,959 $. 16,183,887 6,763,909 Notes: (a) Effective March 2005, the Department of Revenue changed reporting retail sales industries from using the Standard Industrial Classification (SIC) code to use of the North American Industry Classification System (NAICS). Retail sales tax collections prior to the time of this change have not been adjusted. By State law, the City of Tukwila is prohibited from reporting individual sales fax payers. Sources: Tukw ila Finance Department and Washington State Department of Revenue. 150 60 CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION page 2 of 2 2006 2007 2009 11 2012 $ 1,166,088 $ 2,018,058 $ 1,967,785 $ 869,640 $ 917,250 $ 1,390,952 $ 961,125 93,747 121,879 118,780 119,121 99,975 115,123 143,792 450,138 590,455 375,263 246,429 387,234 232,737 390,252 436,260 483,419 492,960 440,206 441,822 405,197 432,608 2,048,517 2,457,437 1,760,449 1,436,045 1,346,750 1,119,527 1,077,613 2,667,481 2,571,601 2,231,745 2,072,356 2,068,263 2,003,947 2,000,865 2,531,049 2,399,347 1,830,576 1,304,234 1,380,407 1,771,083 1,537,143 1,642,722 1,766,853 1,718,898 1,473,496 1,521,741 1,626,452 1,703,741 1,704,213 1,838,646 2,103,630 2,017,904 2,018,304 2,037,554 2,082,930 1,119,859 1,158,424 1,312,603 1,292,252 1,342,964 1,337,067 1,472,343 1,053,184 1,026,778 1,066,183 748,482 664,310 670,806 690,076 855,243 777,870 619,657 589,341 499,383 487,620 516,861 1,141,632 1,198,690 1,129,380 868,260 882,012 932,422 928,610 453,376 531,836 548,962 453,657 428,450 459,606 487,977 278,777 294,869 318,696 283,319 215,045 202,217 234,870 205,644 179,421 185,312 208,467 366,925 553,493 381,693 17,847,930 $' 19,415,583 $ 17,780,879 14,423,209 $, 14,580,835 "$; 15,345,801 $'. 15,042,499 151 61 CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION CITY OF TUKWILA, WASHINGTON SCHEDULE 11 SALES TAX RATE DIRECT AND OVERLAPPING GOVERNMENTS LAST TEN FISCAL YEARS 004" 2005 2006 2007(`) ,�`' 2008 l 2009 t °> ' 2010 2011. 2012" BASIC SALES TAX RATES City of Tukw ila Washington State King County Regional Transit Authority Metro Criminal Justice 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 0.84% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 6.50% 0.15% 0.15% 0.15% 0.15% 0.15% 0.25% 0.25% 0.25% 0.25% 0.25% 0.40% 0.40% 0.40% 0.40% 0.40% 0.40% 0.90% 0.90% 0.90% 0.90% 0.80% 0.80% 0.80% 0.80% 0.90% 0.90% 0.90% 0.90% 0.90% 0.90% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% 0.10% Department of Revenue Administration Fee 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% Total Basic Combined Sales Tax Rate SPECIAL SALES TAX RATES Restaurants ( °t Motor Vehicles (b) 8.80% 8.80% 8.80% - =:' 8.80% 8.90 ° / 9.00% .` 9.50% . ' 9 50% ,' 9.50 %, ' 9.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% * 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% 0.30% Notes: ( °4 King County Food & Beverage tax is in addition to the combined sales tax rate for restaurants, taverns and bars. The funds are used to finance the professional baseball stadium in Seattle. * NOTE: This tax expired on October 1, 2011 as taxes imposed to pay the construction bonds for the Seattle baseball stadium expired. 01 Effective July 1, 2003, all retail sales, leases and transfers of motor vehicles are subject to the additional sales tax of three - tenths of one percent (.003). The funds are used to finance transportation improvements. (°) Effective April 1, 2007, King County increased the local sales & use tax rate one -tenth of one percent (.001). The tax will be used for transportation purposes. (0 Effective April 1, 2008, King County increased the local sales & use tax rate one -tenth of one percent (.001). The tax will be used for chemical dependency or mental health treatment services. (8 Effective April 1, 2009, the Regional Transit Authority Tax increased five- tenths of one percent (.005). The tax will be used to expand and coordinate light -rail, commuter -rail, and express bus service, and improve access to transit facilities in King, Pierce, and Snohomish Counties. Source: Washington State Department of Revenue Local Sales and Use Tax Rates. 62 152 CITY OF TUKWILA: 2012 CAFR STATISTICAL SECTION . 153 63 64