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HomeMy WebLinkAboutPED 2020-08-17 COMPLETE AGENDA PACKETCity of Tukwila Planning & Economic Development Committee O Thomas McLeod, Chair O Kathy Hougardy O Zak Idan AGENDA MONDAY, AUGUST 17, 2020 — 5:30 PM HAZELNUT III IT % E)NFERENCE seem (At east entFance ef City Hall) Distribution: T. McLeod Mayor Ekberg K. Hougardy D. Cline Z. Idan R. Bianchi D. Quinn C. O'Flaherty A. Youn L. Humphrey THIS MEETING WILL NOT BE CONDUCTED AT CITY FACILITIES BASED ON THE GOVERNOR'S PROCLAMATION 20-28. THE PHONE NUMBER FOR THE PUBLIC TO LISTEN TO THIS MEETING IS: 1-253-292-9750, Access Code 100142556# Item Recommended Action Page 1. BUSINESS AGENDA a. Current vision guiding economic development. a. Discussion only. Pg•1 Derek Speck, Economic Development Administrator b. An agreement with Seattle Southside Chamber of b. Forward to 8/24 Consent Pg.47 Commerce for the "Southside Promise." Agenda. Brandon Miles, Business Relations Manager c. Lodging tax allowable uses and process for using c. Forward to 8/24 C.O.W. Pg.55 funds. meeting Brandon Miles, Business Relations Manager d. Lodging tax: Historical usage of fund. d. Discussion only. Pg.65 Brandon Miles, Business Relations Manager e. Lodging tax revenue and ending fund balance e. Discussion only. Pg.67 forecast. Brandon Miles, Business Relations Manager f. Business license fee deferral, follow-up. f. Discussion only. Pg.71 Brandon Miles, Business Relations Manager 2. MISCELLANEOUS Next Scheduled Meeting: September2l, 2020 SThe City of Tukwila strives to accommodate individuals with disabilities. Please contact the City Clerk's Office at 206-433-1800(TukwilaCityClerk(a�TukwilaWA.gov) for assistance. City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning & Economic Development Committee FROM: Derek Speck, Economic Development Administrator CC: Mayor Ekberg DATE: August 10, 2020 SUBJECT: City Vision Guiding Current Economic Development Work ISSUE This item is intended to summarize the City's vision and goals that the City's Economic Development staff uses to guide their work. BACKGROUND At its meeting on August 3, 2020 the Planning and Economic Development (PED) Committee reviewed and discussed the workplan of the City's Economic Development division. A copy is attached. Creating an Economic Development Plan for the City is on the workplan but is not shown as a top priority at this time and most of the work on it would occur in 2021. The Committee asked for an update on what vision the staff is currently using to guide their work in the interim. DISCUSSION The City's Economic Development Division of the Mayor's Office leads the City's business retention, attraction, and marketing efforts; facilitates commercial real estate development; manages the City's lodging tax fund and tourism marketing program; advises the City on policies affecting business; and serves as a general liaison to the business community. The City's vision and goals are expressed in the Comprehensive Plan and the Strategic Plan. Since the Comprehensive Plan is 322 pages long, only the table of contents is attached to this memo. Since the Strategic Plan is 149 pages, only Appendix G (the 2018 Amendments to the Strategic Plan), is attached. Both documents are available in full on the City's website. The Comprehensive Plan and the Strategic Plan are large and extensive documents and so for purposes of this discussion, the following are some very brief excerpts of the vision and goals that economic development staff use when implementing our workplan. Southcenter District: The City's Comprehensive Plan dedicates chapter 10 to the Southcenter District. The vision for the Southcenter District can be found starting on page 10-4. The following is an excerpt of the vision: "a high -density area with housing and regional employment; walkable, as well as auto -oriented, shopping and entertainment districts; areas of high -quality housing near water amenities and within walking distance of the Sounder commuter rail/Amtrak station and the new bus transit center; and recreational opportunities for business people, residents and visitors." INFORMATIONAL MEMO Page 2 In recent years we have worked on projects like AirMark Apartments/Hotel Interurban and Marvelle and programs like the Multi -family Property Tax Exemption to attract multi -family development. We have used lodging tax to attract events like the Rave Green Run and food truck rallys. Currently, we are using lodging taxes to fund ExperienceTukwila, sidewalk and street art, a master plan for Tukwila Pond, and to partner with local businesses to attract visitors and improve the City's image. Tukwila South: The City's Comprehensive Plan dedicates chapter 9 to Tukwila South. An excerpt of the vision can be found on page 9-6: "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." Tukwila South is primarily owned by one company that is well established and funded and capable of hiring resources to attract development. As such, they do not need a significant amount of assistance from Economic Development staff. However, we provide advice on occasion and worked with them to market the site for Amazon's HQ2. Tukwila International Boulevard: The City's Comprehensive Plan dedicates chapter 8 to Tukwila International Boulevard. An excerpt of the vision can be found on page 8-5: "The vision for the Tukwila International Boulevard District is an area that is a complete neighborhood with a thriving, multicultural residential and business community with vibrant places to live, work, shop, and play for everyone. The District is a safe and walkable destination with an authentic, main street character that is connected to other destinations. There is an emphasis on self-sustaining, living wage employment opportunities within the District." In recent years Economic Development staff has focused on coordinating the Tukwila Village development (including forming the Tukwila Village Community Development Association), coordinating the acquisition of five parcels (four of which were motels), coordinating the sale of land, supporting Forterra's partnership with Abu Bakr and their purchase of a motel property, assisting businesses dislocated by the Justice Center, and forming four Opportunity Zones. Currently, we are completing some of the projects mentioned above plus supporting the City's review of on -street parking and zoning, participating in development planning for the former Lewis and Clark theater property, and creating a micro grant program for businesses affected by COVID-19. Manufacturing Industrial Center: The City's Comprehensive Plan dedicates chapter 11 to Manufacturing Industrial Center (MIC), which comprises 998 acres on the northern end of Tukwila. The City's vision is to support the existing manufacturing and distribution businesses since they provide net tax revenue to the city and jobs that are important for the region. In recent years Economic Development staff has not needed to provide significant assistance to businesses and property owners in this area since they are relatively strong and industrial space in the central Seattle region is highly desirable with low vacancy. As vacancies occur and we receive leads, we share those with property owners as appropriate. 2 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/CC Docs/Old W/2020 Info Memos/Econ Dev Vision Memo.doc INFORMATIONAL MEMO Page 3 Currently, we support businesses as requested. For example, this summer Darigold decided to move into the cold storage building at the corner of Boeing Access Road and East Marginal Way and requested our assistance to begin the permitting process. Economic Development Element: Chapter 2 of the City's Comprehensive Plan is the "economic development element". A copy is attached. As stated on page 2-2, the "overriding goal of this element is enhancing the community's economic well-being." This chapter includes over 60 suggested approaches, activities, goals, policies, and strategies to achieve the overriding goal. Economic Development staff works on these as businesses seek assistance or when opportunities to leverage other resources arise. Following are some that we have worked on in recent years or are currently working on. 1. Responding to specific requests for assistance from local firms 2. Encourage the retention and growth of existing local firms 3. Encourage entrepreneurs, local startups and businesses to establish in Tukwila 4. Emphasizing business development to encourage existing businesses to expand 5. Study and understand the factors causing the inflation -adjusted reduction in the City's overall taxable retail sales. 6. Increase the development, intensity and diversity of uses in the Southcenter area, including the development of housing and entertainment. 7. 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. 8. Partner with a broad range of non -profits, businesses and public sector agencies to develop a facility for food -related workforce development and entrepreneurship training. 9. Support collaborative marketing initiatives with businesses. 10. Support business skills training for entrepreneurs and small businesses through partnerships with universities, colleges, community colleges, community -based organizations and other third parties. 11. Work with local chambers of commerce on business retention, business development, outreach and joint efforts to promote the City. Community Image and Identity Element: Chapter 1 of the City's Comprehensive Plan is the "community image and identity element". A copy is attached. Among other topics, this chapter includes many goals, policies, and strategies to build Tukwila's identity and improve its image. Economic Development staff works on these as opportunities to leverage other resources arise. Following are some that we have worked on in recent years or are currently working on. 1. 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, including those that are representative of the City's diverse population. 2. Strengthen the image and character of Tukwila's distinct areas and neighborhoods. 3. Capitalize on the potential that public projects have for serving as symbols of the community, and for expressing the identity and special character of the area where they are located. 4. Expand the system of incentives, tools, and supports that encourage investment in and maintenance of private and public spaces. 5. Focus City planning and investments on creating a connected, dynamic urban environment. https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/CC Docs/Old W/2020 Info Memos/Econ Dev Vision Memo.doc 3 INFORMATIONAL MEMO Page 4 6. Create and enhance public spaces for community use. 7. Take a proactive role in generating positive media coverage of the community. 8. Implement a long-term and consistent effort to shift negative perceptions of crime and public safety in Tukwila. 9. Contract with King County Landmarks Board for historic preservation services. 10. Promote partnerships between the City and community cultural heritage groups, such as the Tukwila Historical Society. 11. Encourage both public and private stewardship of historic sites and structures. 12. Maintain, improve and expand distinctive gateway features located at freeway off -ramps and at City limit lines where they cross major arterial streets; use graphics, orientation maps, informational signage, lighting, specimen trees, plantings with seasonal color, artwork, monument forms, or combinations thereof. 13. Encourage placemaking through creative use of signage, art and high -quality materials. 14. Explore establishing a farmers market, mobile produce truck or other forum for the sale of fresh in -season produce. The vision and goals in the Strategic Plan are very closely aligned with those in the Comprehensive Plan and so it seemed unnecessary to duplicate them in this memo. In summary, the Comprehensive Plan and the Strategic Plan provide a lot of information on the City's vision and direction that Economic Development staff can follow to help achieve that vision. Currently, we focus on which issues are most pressing, where we can add the most value, and where we can leverage opportunities. Although we have sufficient information in order to guide our work at this time, it would be useful to have an economic development plan that considers the existing vision and goals, revises them as needed, identifies priorities and resources, and builds community support. FINANCIAL IMPACT None RECOMMENDATION Information and discussion only. ATTACHMENTS 1. Current Economic Development Workplan for 2020 2. Comprehensive Plan Table of Contents 3. 2018 Amendments to the 2012 Strategic Plan 4. Chapter Two: Economic Development 5. Chapter One: Community Image and Identity 4 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/CC Docs/Old W/2020 Info Memos/Econ Dev Vision Memo.doc City of Tukwila MAYORS OFFICE ECONOMIC DEVELOPMENT DIVISION 2020 WORKPLAN - DRAFT 7-27-20 Tukwila Village A Support Tukwila Village Community Development Associates (non-profit)* B Approve developer parking management plan* C Approve estopple certificate of completion for Phase 2* Land Sales A Coordinate sale of city property to HealthPoint for health and wellness center* B Coordinate sale of Longacres parcel C Coordinate sale of Newporter parcel D Coordinate sale of former fire station 53 parcel E Coordinate sale of Minkler parcel F Coordinate sale of George Long shops parcel Public Safety Plan A Coordinate sale of Traveler's Choice property to affected businesses* B Support project management team with design and permit review* Economic A Create an economic development plan for Tukwila Development B Increase understanding and inclusion of equity and social justice* Plan Business A Monitor the pandemic, economy and resources. Inform businesses* Recovery B Coordinate use of $31,965 business support grant from King County* C Develop and implement SavingLocalKC.com* D Conduct business survey* - Done E Provide recommendations for Working Washington Grants* - Done F Conduct windshield surveys for business compliance and activity* - Done G Develop and implement the Great Tukwila Carry -out* - Done Lodging Tax A Coordinate committee including applications, contracts, and reporting* Advisory B Monitor legislative issues Committee C Build upon business relationships* Branding and A Lead development of branding and wayfinding plan* Tourism B Build partnerships with strategic organizations (e.g. Sounders and Seawolves) Marketing C Facilitate and sponsor special events such as Rave Green Run, etc. D Facilitate art in Southcenter District* E Facilitate Baker Boulevard for festivals and events F Facilitate improvement of Tukwila Pond Park* G Develop strategy to grow entertainment attractions H Develop and implement digital media strategy for ExperienceTukwila* I Develep ai-sicai iii^cai'a strategy far yisitin^,�—and iyin^,�—in the Policy A Manage City's regional transportation policy and advocacy* B Participate in zoning and on street parking policy for Tukwila Int'I Boulevard* Page 1 of 2 5 MAYORS OFFICE City of Tukwila ECONOMIC DEVELOPMENT DIVISION 2020 WORKPLAN - DRAFT 7-27-20 Business A Marketing to attract business and development Retention, B Networking to attract business and development Expansion, and C Respond to business inquiries* Attraction D Support development of TIB with branding, business development, etc. E Support maintenance of KentValleyWA.com and SoundsideAlliance.com* F Provide permitting assistance for priority projects* Regional ED A Participate in Greater Seattle Partners, Chambers of Commerce, Organizations Seattle Sports Commission, Int'I Council of Shopping Centers, etc. Other A Coordinate development agreements (when ED is the lead) B Manage multi -family property tax exemption program (approved projects) C Coordinate Port of Seattle economic development grant* Administrative A Participate on Administrative Team* C Staff Soundside Alliance for Economic Development* D Staff Port of Seattle Roundtable (START)* E Staff Airport Budget Proviso Working Group* Small Projects A Business ewtFeaeh feF plastic bag peliey B nnicaraa-study C Crosswalk art - Done D 4Culture grant for Old City Hall preservation plan E Bank De -Risking - Done Potential Projects A Adapt to economic development plan B Coordinate way to leverage business community relationships C Evaluate ZIP code effect on city tax revenue and image D Support analysis of sales tax E Participate in Green and Duwamish River related policies (e.g. levee) F Support analysis of affordable housing economics and policy G Expand branding related to business retention, expansion, and attraction H Support special event permit process to attract strategic festivals and events I Participate in regional economic development policy such as PSRC J Coordinate policy review for expansion of multi -family tax exemption program Notes: Top priority items for 2020 are indicated by an asterisk Items that have been removed from the original workplan are shown in strike through. Items that are underlined have been added since January. 6 Page 2 of 2 Preface V Introduction A Vision AV Purpose 1 - 2 Issues 1 - 3 Goals, Policies and Strategies 1 - 8 Related Information 1 -18 Purpose 2 - 2 Issues 2 - 6 Goals, Policies and Strategies 2 - 8 Related Information 2 -12 Purpose 3 - 2 Issues 3 - 3 Goals, Policies and Strategies 3 - 5 Related Information 3 -13 Purpose 4 - 2 Issues 4 -11 Goals, Policies and Strategies 4 -13 Related Information 4 -28 Purpose 5 - 2 Issues 5 - 3 Goals, Policies and Strategies 5 - 5 Related Information 5 -25 TUKWILA COMPREHENSIVE PLAN - 2015 PAGE ii 7 Purpose 6 - 2 Issues 6 - 5 Goals, Policies and Strategies 6 - 9 Related Information 6 -21 Purpose 7 - 2 Issues 7 - 4 Goals, Policies and Strategies 7 - 7 Related Information 7 -19 Purpose 8 - 2 Issues 8 - 6 Goals, Policies and Strategies 8 - 9 Related Information 8 -28 Purpose 9 - 2 Issues 9 - 2 Goals, Policies and Strategies 9 - 6 Related Information 9 - 8 Purpose 10 - 2 Issues 10 - 4 Goals, Policies and Strategies 10 - 7 Related Information 10 -16 Purpose 11 - 2 Issues 11 - 2 Goals, Policies and Strategies 11 - 5 Related Information 11 -10 TUKWILA COMPREHENSIVE PLAN - 2015 i PAGE iii Purpose 12 - 2 Issues 12 - 3 Goals, Policies and Strategies 12 -13 Related Information 12 -22 Purpose 13 - 2 Issues 13 - 3 Goals, Policies and Strategies 13 - 4 Related Information 13 -30 Purpose 14 - 2 Issues 14 - 8 Goals, Policies and Strategies 14 -11 Related Information 14 -18 Purpose 15 - 2 Issues 15 - 3 Goals, Policies and Strategies 15 - 5 Related Information 15 -14 Glossary A - 1 Comprehensive Plan Land Use Map Legend A -13 Comprehensive Plan Land Use Map TUKWILA COMPREHENSIVE PLAN - 2015 PAGE iv 9 APPENDIX G 2018 Amendments to the 2012 Strategic Plan In 2018, the City began implementation of a new budgeting method called Priority Based Budgeting. An important step in Priority Based Budgeting is to score the City's programs and services against the City's goals identified in the adopted Strategic Plan. Staff did outreach to the community in the first half of 2018 to see if the Strategic Plan still reflects the Community's priorities and values. The outreach included an online survey, print surveys distributed to the City's Boards & Commissions, community groups, the Foster High School civics classes (71), the Community Connectors, and other contact opportunities, as well as a community dinner and workshop on May 3rd at Thorndyke Elementary School attended by around 50 people. The survey was translated into Spanish, Somali, Burmese, Nepali and Vietnamese. The City also offered an online survey to staff as well. The following is a summary of the survey feedback from the community and from staff that informed the 2018 amendments. 1. What has been accomplished since 2012? Accomplishments that constituents and staff are proud of include improvements to roads and sidewalks, the new library, Tukwila Village, general improvements to Tukwila International Boulevard, and adding residential development to the Southcenter business district. 2. What does our community still need to work on? Constituents report that the City still has work to do with regard to safety, projecting a positive image, ensuring that Tukwila residents can get basic needs met — affordable housing being at the top of the list — and community outreach and engagement. 3. What do you like about the Plan? What is important to you that the City should consider when developing the budget? For the most part, constituents agree with the vision, mission, goals and objectives laid out in the 2012 Strategic Plan, and that the City should keep working toward the aspirational vision of being "The City of Opportunity, the Community of Choice." 4. What would you change about the Plan? What's missing? Important items that the community and staff have identified as missing from the Strategic Plan in its current form, are: a. Equity, particularly with regard to race b. Addressing gentrification and displacement c. Health and environmental health d. Infrastructure e. Technology and innovation The 2012 Strategic Plan was then amended to reflect the feedback in Question 4 above, as indicated herein by underlined text. —2- 10 City of Tukwila Strategic Plan — 2018 Amendments Appendix G — July 2018 STRATEGIC GOALS AND OBJECTIVES GOAL ONE — A Community of Inviting Neighborhoods & Vibrant Business Districts A. Cultivate community ownership of shared spaces. 1. Expand the system of incentives, tools, and supports that encourage investment in and maintenance of private and public spaces. Improve enforcement of the City's regulations. 2. Ensure City -owned properties meet the community's desired look and feel. Encourage partners to maintain their properties to similar standards. 3. Explore ways to use public art to beautify and enrich the community. 4. Reduce commercial activity that is not compatible with residential neighborhoods as opportunities arise. B. Build a broad and collaborative approach to preventing crime and increasing the sense of safety. 1. Engage all City departments in reducing crime. 2. Use environmental design principles to improve public safety. 3. Engage businesses and residents in preventing crime and preparing for emergencies. Over time, broaden the focus of this engagement to other community -building efforts. Explore opportunities to engage visitors in crime prevention and crime reporting. Improve relationships between the City and immigrant communities around public safety. 4. Partner with social service organizations and explore regional solutions to prevent crime. Review case data to identify frequent violators and coordinate with service providers to resolve issues. C. Focus City planning and investments on creating a connected, dynamic urban environment. 1. Prioritize changes that promote public safety, encourage the active use of space, and facilitate foot and bike access. — Make smart investments to support the desired environment, including sidewalk, trail, street, and lighting improvements to support biking and walking as funding and other factors allow. Identify appropriate parks to be made safer for all users by reducing vegetation to improve visibility, allowing other parks to have more native landscaping. Advance implementation of the City Walk & Roll Plan. 2. Explore creative ways to increase transit, foot, and bicycle access to community amenities, stores, and jobs. —3- 11 City of Tukwila Strategic Plan — 2018 Amendments Appendix G — July 2018 3. Work with the community to identify desirable retail opportunities in residential neighborhoods. D. Use City efforts and investments to realize established visions for specific sub -areas. 1. Implement the community -led vision for the Tukwila International Boulevard neighborhood. 2. Work with businesses to finalize and implement the City's Southcenter Plan. 3. Continue to support the development of Tukwila South. 4. Tailor land use codes for the specific circumstances of individual subdistricts rather than applying one set of codes citywide. 5. Identify public and private infrastructure investments that will be needed to support the long-term vision for specific areas of the City. — Use multi -department teams in long-term planning efforts to establish shared goals and target City investments in catalytic projects. E. Build and maintain public infrastructure that supports a healthy and attractive built and natural environment. 1. Ensure that all neighborhoods and business districts have the necessary utilities, roads, bridges, sidewalks, and other infrastructure to thrive. 2. Ensure that all public infrastructure in the City supports a healthy and attractive natural environment. GOAL TWO — A Solid Foundation for All Tukwila Residents A. Partner with organizations that help meet the basic needs of all residents. 1. Continue to advocate for vulnerable populations and increase understanding of the challenges they face. 2. Actively collaborate with service providers supporting basic needs, including housing, food, health care, education, employment and job readiness. 3. Be a regional leader in efforts to increase housing security and meeting the needs of a dynamic community. Explore opportunities for supporting cooperative and alternative housing for transitioning and recent refugees. B. Strive for excellent education, vocational supports, and personal growth opportunities through effective partnerships and City services. 1. Strengthen the City's partnership with schools to identify and pursue shared goals. — Seek opportunities to support educational and vocational goals of individuals who have "aged out" of the traditional school system. 2. Facilitate connections between educators, service providers, and businesses to link residents with job training and employment opportunities. —4- 12 City of Tukwila Strategic Plan — 2018 Amendments Appendix G — July 2018 3. Improve access to parks and recreation programming to serve a broader range of Tukwila's residents. Engage community members in identifying unmet needs and interests. — Explore opportunities to increase easy access to the Tukwila Community Center (TCC) and bring programming out of the TCC, into the community. C. Encourage maintenance, improvements, and diversity in the City's housing stock. 1. Engage communities in determining the desired look and feel for new housing units in established neighborhoods. 2. Promote the availability of quality housing options at all price points to support social diversity and ensure families and individuals can remain in Tukwila as life circumstances change. — Explore opportunities to provide more assisted -living options for seniors that are neither low-income nor in -home care. D. Work to eliminate systemic barriers and provide equitable access to opportunities and services as outlined in the City's Equity Policy. GOAL THREE — A Diverse & Regionally Competitive Economy A. Embrace the City's economic potential and strengthen the City's role as a regional business and employment center. 1. Establish and implement an economic development strategy that identifies ambitious goals and leverages the efforts of all City departments to strengthen the City's economy. 2. Employ a business -friendly approach to regulation while protecting the long-term interest of neighborhoods and businesses districts. 3. Strengthen the City's image as an economic hub, promoting Tukwila's businesses and the City as a good place to do business. 4. Promote understanding of the interdependencies and mutual interests among Tukwila residents, Tukwila businesses, and the City of Tukwila. B. Strengthen the City's engagement and partnership with the business community. 1. Improve the City's ability to have two-way communication with Tukwila businesses. 2. Cultivate business participation in strengthening and promoting the Tukwila community. C. Encourage development, maintenance, improvements, and diversity in the City's stock of business space. 1. Promote the availability of quality business space options at all price points to support business diversity and ensure that businesses of all sizes can and want to remain in Tukwila. —5- 13 City of Tukwila Strategic Plan — 2018 Amendments Appendix G — July 2018 GOAL FOUR — A High -Performing & Effective Organization A. Use Tukwila's Vision, Mission, and Strategic Plan to focus and prioritize City efforts. 1. Align City efforts and priorities around the Strategic Plan, including Council goal - setting, the City's regular budgeting processes, and department -level workplanning. — Create a results -oriented customer service culture focused on achieving the City's Mission. Establish an annual process for reviewing progress and establishing new action plans for implementing the community aspirations set by this Strategic Plan. Establish City of Tukwila Values or Guiding Principles to shape organizational culture and guide decision -making. 2. Track and report progress on meeting Strategic Plan Goals to City staff, residents, businesses, and other interested parties. — Identify performance measures by department and establish tools and schedules for reviewing, sharing, and learning from progress. 3. Improve communication and strengthen relationships up, down, and across the organization. B. Advance Tukwila's interests through participation in regional partnerships. 1. Encourage broad participation of City staff and elected officials in regional partnerships. 2. Be a regional leader in building common goals with our local and regional partners to achieve the greatest possible results. C. Continue to innovate and develop as an organization, and support individual growth. 1. Encourage employee leadership throughout the organization. Engage and leverage the full abilities of each employee. 2. Establish a culture and mechanisms to support ongoing growth and learning as an organization. 3. Seek innovative opportunities to improve public service. D. Ensure City facilities are safe, efficient, and inviting to the public. E. Ensure the long-term fiscal sustainability of the City. 1. Promote shared staff and community understanding of the City's fiscal position. Share information about significant revenue and cost factors, as well as the rationale for decision -making. 2. Focus City expenditures on community priorities and maximize efficiencies in service delivery. Evaluate City services and service delivery models relative to the City's Mission, Strategic Plan, fiscal outlook, and ongoing input from the community. —6- 14 City of Tukwila Strategic Plan — 2018 Amendments Appendix G — July 2018 Establish policies and processes to adopt technology that improves City services and makes them more efficient. Explore opportunities for regional partnerships and regional service delivery models that are fiscally beneficial to the City and in line with community values. — Encourage future development in locations where existing infrastructure can absorb the growth. 3. Increase City revenues to support quality services for the whole community. Aggressively pursue opportunities to grow the City's business tax base through economic development. Explore options to increase revenues for the provision of City services or facilities for the benefit of our residents, businesses, and visitors through mechanisms that are fair and appropriate. GOAL FIVE — A Positive Community Identity & Image A. Improve the City's ability to build trust and work with all members of the Tukwila community. 1. Broaden the City's toolkit to include new technology and formats that enable two-way communication and improve business processes. 2. Strengthen the City's ability to engage with communities that do not participate in traditional formats. — Adopt engagement strategies that bring City staff and decision makers out into the communities they serve to engage in meaningful dialogue. — Cultivate meaningful, long-term relationships with members of the City's communities. Expand the linguistic and cultural competencies of City staff through training and hiring. 3. Cultivate participation by Tukwila's many communities in the City's decision -making processes. B. Facilitate connections among Tukwila's communities. 1. Build connections among the many communities that make up the broader Tukwila community. 2. Improve broad understanding and appreciation of all of the City's cultures. C. Promote a positive identity and image of Tukwila. 1. Take a proactive role in generating positive media coverage of the community. — Promote the City's amenities, cultural dynamism, and geographic location. Shift negative perceptions about crime in Tukwila. —7- 15 City of Tukwila Strategic Plan — 2018 Amendments Appendix G — July 2018 2. Implement a long-term, scalable community branding effort. Establish common themes that promote Tukwila's many positive attributes. — Expand community markers at City boundaries and at key points throughout the community, establishing a clear community signature. — Use public art that is representative of the City's diverse communities in the branding effort. 3. Promote Tukwila's international diversity as a strength and draw for regional visitors. Support neighborhood businesses in reaching new markets through improved facades, way -finding banners, and common promotions. — Explore opportunities for establishing a neighborhood business district organization to provide ongoing support for small businesses operating within a defined geographic area. — Explore opportunities to establish a shopping and dining destination, similar to Seattle's Pike Place Market or International District. —8- 16 CHAPTER TWO ECONOMIC DEVELOPMENT TUKWILA COMPREHENSIVE PLAN VOL U ECONOMIC DEVELOPMENT WHAT YOU WILL FIND IN THIS CHAPTER: • A description ofTukwila's economic setting, • A discussion of issues that affect economic development in the City, and • Goals and policies for enhancing the community's economic well-being. PURPOSE The overriding goal of this element is enhancing the community's economic well-being. Through 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 integrating 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 capacity, 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; and Helping coordinate public and private sector efforts to enhance the employability and job progression of the residential population. TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 2-2 The 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 and support the opportunities for education, skills training 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, local startups and businesses to establish in Tukwila Provide efficient and timely administration of City services The City of Tukwila emphasizes the following activities in order to accomplish it's economic development goals: Responding to specific requests for assistance from local firms Supporting the development of new businesses and expansion of current businesses that are minority-, veteran- and women -owned. Expanding efforts to engage with and understand the economic development needs and priorities of traditionally under -represented groups in Tukwila neighborhoods Emphasizing business development to encourage existing businesses to expand Maintaining public works and utilities so the City's infrastructure can meet both existing and future needs of the economic sector Supporting job enhancement programs to increase residents' employability through coordination of private and public sector activities TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 2-3 19 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 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. ECONOMIC SFTTING The following statistics help set the background for economic development policies. The Economic Development Background Memo contains additional supporting information, including employment and housing growth targets per the Countywide Planning Policies. POPULATION, INCOME AND REVENUE In 2003, the population of Tukwila was 17,270; estimated 2011 population was 19,210. 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 $42.4 in 2013. During the same period the assessed valuation of the City grew from $3.34 billion to $4.47 billion. In 2002, there were 7,628 housing units; by 2013, this number had increased to 8,039 units. In 2010, the median age of Tukwila residents was 33.6 years; nearly 8% of all citizens were older than 65; and 24% of the residents were under 18. In 2010, residents of color were 50.1 % of the population. Foreign -born residents account for 36.2% of the population, and over 70 languages are spoken in the Tukwila School District. TUKWILA COMPREHENSIVE PLAN - 2015 20 PAGE 2-4 The median household income in the City in 2010 was $44,271, 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% from 2000 to 2010. EMPLOYMENT In 2000,Tukwila had nearly three times as many jobs as it had residents, but that number fell to 2.27 in 2010. There were over 2,575 licensed businesses of all types in Tukwila in 2013. The total number of jobs in Tukwila has declined since 2000. In 2000, the City had approximately 48,000 jobs. By 2013, the total number of jobs in the City had fallen 17% to just over 40,000. Employment within Tukwila is distributed among a number of different sectors. Service composes the largest percentage of jobs with 32% of all jobs. Manufacturing is next with 25% of jobs in the City. In 1991, 56% of all jobs in the City were related to manufacturing. In 2002, the number of jobs in manufacturing dropped to 28%. 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. In 2010, retail accounted for 14% of jobs in Tukwila. Warehousing, transportation, and utilities made up 12%. Tukwila Covered Employment by Sector, 2000-2010 50,000 45,000 E Education 40,000 ! ! Government 35,000 (Wholesale Trade, WTU Transportation & 30,000 uaraes) 25,000 ■ Services 20,000 Retail 15,000 ■ Manufacturing 10,000 (Finance, ■ FIRE Insurance & Real Estate) 5,000 M ■Construction & p HResources 00 ^1 0"'' O" Ob O41 O,0 0, 0", 011 10 ,10 ,10 ,10 ,y0 ,y0 ,y0 ,10 ,10 ,10 ,10 ,y0 Employment within Tukwila is distributed among a number of different sectors. Services composed the largest percentage of jobs in 2010, with 32% of all jobs. Manufacturing (25%); Retail (14%); and Warehousing, Transportation and Utilities (12%) also make up sizable shares of Tukwila's employment. The share of each sector relative to each other did not change significantly between 2000 and 2010. All sectors, with the exception of Construction, showed slight decreases. The finance, Insurance and Real Estate (FIRE) sector decreased the most with a 3.7% decrease. Retail and Manufacturing also saw decreases of 2.3% and 2.4%, respectively. TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 2-5 21 RETAIL SALES While Tukwila remains a strong attractor of consumer SMALL BUSINESS DEVELOPMENT spending, the City has experienced a significant reduction CENTER (SBDC) in taxable retail sales, once adjustments are made for The SBDC at Highline specializes in providing business and training inflation. When adjusted for inflation, taxable retail sales services to entrepreneurs and existing in 2013 were lower than they were in 2003. The City's sales businesses, in order to be successful in tax decline began to occur roughly around the late 1990s. today's economy. The center provides: Competition for retail sales among regional retail centers • Knowledgeable, trusted and has grown stronger over the last ten years. confidential one-on-one advice on all aspects of your business. • A link to 23 other SBDC centers in ISSUES the Statewide network for additional advice. Current and existing economic trends suggest a variety of • Guidance on the purchase of an issues and needs for economic development in the City of existing business or a franchise. • Assistance in finding the best sources Tukwila: of capital to grow your business. Provide access to the regional highway, transit and air • A proven pathway to breakout transportation system in a way that does not handicap growth for established businesses ready to take their business to the local property development and redevelopment next level. efforts. • Benchmarking your company's performance with others in your Explore possible City actions to increase the median industry to uncover improvement income of Tukwila's residents, including support opportunities. for entrepreneurship, small business startups, and • Matching you with resources that can vocational training, particularly among low income or best accelerate the success trajectory low English proficiency communities. of your business. • Developing prospect lists through Establish coordinated transit hubs throughout the targeted database searches. City including, but not limited to, the Southcenter • Information about little-known area,Tukwila South,Tukwila International Boulevard, training and funding to grow your Interurban Avenue South, and the Manufacturing business. • A "ca n-do" attitude about anything Industrial Center that efficiently mix modes of travel you need to successfully grow your and stimulate development of real estate associated business with transportation facilities. TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 2-6 22 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 City's neighborhoods. Foster environmental remediation (brownfield cleanup), land conversion and redevelopment in the Manufacturing Industrial Center (MIC) and Interurban Avenue areas. Increase the development, intensity and 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, using innovative engagement models such as the Community Connector Program. 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 the success and diversity of 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. TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 2-7 23 GOALS, POLICIES AND STRATEGIES Community Well -Being GOAL 2.1 Tukwila has a strong role as a regional business and employment center which allows it to enhance and promote the community's well-being. POLICIES 2.1.1 Develop the tools needed to improve the economic development 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 creation, retention and growth, and to implement interlocal and regional strategies. 2.1.3 Expand access to quality, healthy, affordable and culturally -appropriate food 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, in order 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 non -financial ways (such as brokering and interlocal agreements) to assist industrial land owners to comply with State and federal government environmental remediation requirements. 2.1.9 Consider a public -private partnership to examine creating a small business incubator space in the City. TUKWILA COMPREHENSIVE PLAN - 2015 24 PAGE 2-8 2.1.10 ImproveTukwila's image, participation and influence in regional forums, especially those that influence Tukwila's future and interests. 2.1.11 Promote understanding of the interdependencies and mutual interests among Tukwila businesses, residents and the City of Tukwila. 2.1.12 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. 2.1.13 Seek funds from non -City sources for use by the City to directly encourage economic development. 2.1.14 Design and support human service programs, such as partnerships for interns and job training in higher wage industries, to enhance the economic well-being of the City's residents. 2.1.15 Promote Tukwila as a regional confluence of commerce, housing and entertainment. 2.1.16 Promote and preserve economic use of industrial lands outside the Manufacturing Industrial Center (MIC) through appropriate buffering requirements and use restrictions. 2.1.17 Include standards in the development regulations for industrial uses that adequately mitigate potential adverse impacts on surrounding properties and public facilities and services. 2.1.18 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. TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 2-9 25 Implementation Strategies Develop an Economic Development Plan. 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. Partner with a broad range of non -profits, businesses and public sector agencies to develop a facility for food -related workforce development and entrepreneurship training. 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 responsibilities into their practices. Increase communication between the City of Tukwila and Tukwila businesses using innovative community engagement models. TUKWILA COMPREHENSIVE PLAN - 2015 26 PAGE 2-10 Support business skills training for entrepreneurs and small businesses through partnerships with universities, colleges, community colleges, community -based organizations 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. Work with local chambers of commerce on business retention, business development, outreach and joint efforts to promote the City. Collaborate with local school districts to improve the educational opportunities for Tukwila school children. Consider providing information about City hiring processes and job openings at City -sponsored events and in City communications. TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 2-11 27 RELATED INFORMATION Comprehensive Annual Financial Report King County Countywide Planning Policies (2012) Economic Development Element Background Memo TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 2-12 CHAPTER ONE COMMUNITY IMAGE AND IDENTITY TUKWILA COMPREHENSIVE PLAN ' TIN .. �'r 1 uc.1 � r`- � --ice; 'r,� .�� ..�f � �J r•. vim'""- ,. _ LOW `fir _ COMMUNITY IMAGE AND IDENTITY WHAT YOU WILL FIND IN THIS CHAPTER: • A basic framework that celebrates Tukwila's history, builds on its diversity and fosters civic engagement while accommodating growth that furthers the community's vision; • A discussion of issues that shape Tukwila's image and identity as experienced by Tukwila's citizens, businesses and visitors, and perceived by those outside the community; • Goals and policies for promoting a positive community character and identity; and • Goals and policies to encourage healthy living choices. PURPOSF The Community Image and Identity element establishes a framework that celebrates our history and environment — such as views of Mt. Rainier, the Cascades and the Green/Duwamish River system, builds upon our diversity and fosters civic engagement, while accommodating growth in a way that furthers the community's vision. The goals and policies of this element are intended to enhance the overall Community Image and Identity to which every element of the Plan contributes in some degree. The citizens of Tukwila have expressed a strong interest in strengthening this identity and image through the original Vision Tukwila and Tukwila Tomorrow processes in the 1990s and the recent strategic planning process and Community Conversations. The strategic planning process culminated in the approval by the City Council of the City of Tukwila Strategic Plan 2012 (Strategic Plan). The goal and policy recommendations in this chapter reflect this interest in promoting a positive community character and identity. They are based on the image of the community as seen not only by the citizens of Tukwila, but also by visitors and those who come here to work. With little available vacant land other than the Tukwila South subarea, much of Tukwila's future residential population growth will occur in mixed use commercial areas. Ensuring that these increasingly dense areas are vibrant, attractive places to put down roots is key to achieving Citywide goals. As Tukwila transitions from being a suburban community to a more urban place, the importance of well -designed commercial and multifamily spaces is recognized. The value of preserving and celebrating the area's diverse cultural and historical heritage is also broadly appreciated. TUKWILA COMPREHENSIVE PLAN - 2015 30 PAGE 1-2 ISSUES Tukwila is an economically and geographically unique community. It has a large proportion and expanse of commercial and industrial activity compared to the amount of residential development. It is divided into distinct areas by freeways and crisscrossing arterials, with the Green/Duwamish River winding throughout the entire length of the City. The hillsides and valleys in the area further split the City into numerous, almost disconnected segments. Local streets and major arterials do not follow a predictable grid pattern. Large industrial and commercial developments, together with associated parking, tend to dominate the City's landscape when seen from freeways and major arterials. This persists as the overall image of the City despite the community's many areas of quiet residential streets and abundant vegetation. This geology also contributes to a sense of fracture between neighborhoods, resulting in the challenge of developing solutions that serve all the residents. Spectacular views of Mount Rainier, the Cascade Mountains and even the Seattle skyline are available from many hillsides around the City. In addition, numerous streets run along the hillsides and afford sweeping vistas of land and greenery. And finally, the Green/Duwamish River and Tukwila Pond could serve as prominent and dramatic elements of the community's image and identity. The potential of these two natural features as unique amenities has yet to be fully realized. Historic Preservation and Cultural Awareness While Tukwila has a rich history that has involved farming, the river, rail transportation and the development of the aircraft industry, there are few visible indications of its earlier days. With the exception of the Museum of Flight, the Duwamish Hill Preserve and some interpretive markers along the Green/Duwamish River, there are no explanations or celebrations of the major features of the community's heritage, such as the Interurban rail line. Only a few places are given any degree of commemoration with respect to their role in the history and growth of Tukwila. Due to Tukwila's location on the Green/Duwamish River, the area has been home to many Native American settlements, and played an important role in local Native American history and culture. Development along certain portions of the river has exposed artifacts from the days when Native Americans travelled the river and camped along its banks. These artifacts require protection from future development, and improved interpretation so that the public can appreciate their origin and significance. Original Tukwila City Hall Building TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 1-3 31 Cultural Diversity Foreign -Born Population by Place of Birth in selected South King Cities, 2006-2010 Tukwila's demographics have changed 5% 0% Tukwila SeaTac Renton Kent Burien King County significantly in the 20 years since the original Comprehensive Plan was adopted. Similar to changes seen throughout all South King County, Tukwila has become home to a diverse mix of people from many backgrounds and countries. Oceania Our challenge is to create a community where Africa residents - including both the long-term and . the recently -arrived, with varied backgrounds, ■ Europe traditions, languages and countries of origin - ■Americas feel connected and committed to each other, ■Asia their neighborhoods, their community groups and organizations, and to the City as a whole. Many people feel involved in their own piece of Tukwila, be it a block, a neighborhood, a business park or a particular linguistic, cultural or interest group. Throughout the development of the City's five- to ten-year Strategic Plan (2012), there was a clearly expressed desire to increase a shared sense of belonging and involvement in Tukwila as a whole. This desire will be carried forward in the Comprehensive Plan through goals and policies which promote robust outreach on Comprehensive Plan activity and other City actions to the entire community including a culturally -appropriate and language -specific approach that engages all members of its population. This outreach included not only working with groups and individuals who have been involved in land use issues in the past, but reaching out to individuals and groups whose ideas have not traditionally been heard. "Community Conversation" meetings were held in 2014 to hear about issues important to the many different cultural communities in Tukwila. This engagement involved talking with the City's diverse residents via culturally and language specific Community Connectors who helped residents identify the issues most important to them, ensuring that diverse views were represented. The City will continue to explore ways to engage all citizens in its planning process, such as the pilot Community Connectors program, using social media and other technologically innovative approaches. TUKWILA COMPREHENSIVE PLAN — 2015 32 PAGE 1-4 City Boundaries There is little sense of entering or leaving either the community as a whole or individual neighborhoods, because in many areas the City limits are irregular or do not coincide with natural boundaries. In addition, Tukwila's growth through petitioned annexations has created certain boundary anomalies: The border configuration between Tukwila and Seattle in the King County Airport area, in which EEML6.� the boundary crosses Interstate 5 more than once and splits certain industrial properties, creates a number of jurisdictional issues, including police response. On the southwest, the boundary between Tukwila and SeaTac crosses Interstate 5 and other streets in several places, creating difficulties for the reasonable provision of services. With major expansion largely ended, there is an opportunity to make Tukwila's size and extent more visible by providing identifiable boundary markers. Commercial Development and Urban Design Four strategies from the City's Strategic Plan were identified that could be used to develop a community of inviting neighborhoods and vibrant business districts. During the strategic planning process and the Community Conversations that informed the Comprehensive Plan Update, the City heard consistently that residents and businesses want a safe and visually attractive community. The design of residential and commercial development is key to accomplishing this goal. Visually attractive development occurs through the application of design criteria that are functional, attractive and safe. Safe and visually attractive communities are also achieved through the enforcement of existing standards. I� Community Preference Survey - March 2073 City planning and investment in infrastructure promotes safe, attractive neighborhoods and business districts, and supports and enhances Tukwila's position as a major shopping and employment center. Areas of focus include making the City more accessible for bicyclists and walkers, and engaging residents and businesses in setting expectations for how Tukwila's public and private spaces will look. TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 1-5 33 ill vri `—I -L Community Conversations - March 2073 Parks, Recreation and Open Space System A community's identity is also drawn from the green spaces that make up a system of parks, recreation and open space. For the first time, the Comprehensive Plan addresses this important community feature in a separate Parks, Recreation and Open Space Element. Healthy Living The urban form - including the infrastructure and built environment - affects the health of residents and workers, as well as the overall community identity. The proximity of trails, sidewalks for safe walking, transit connections to reduce the use of single - occupant vehicles that contribute to air pollution, the availability of recreation programs, and access to healthy and affordable food choices all contribute to the health of a community. The importance of providing healthy living choices is reflected throughout the Comprehensive Plan especially in this element, as well as in the Parks, Recreation and Open Space, Economic Development and Transportation elements. The City hosted Community Conversations to identify issues as part of the update to the Comprehensive Plan, and Community Conversation outreach meetings when developing the 2012 Strategic Plan. As part of these efforts, community members consistently expressed their desire for better access to recreational opportunities, safer routes to schools for children, and better access to affordable, good quality food, including fresh fruits and vegetables. The community -expressed need for better access to food is supported by the U.S. Department of Agriculture identification of Tukwila as a "food desert,' based on its definition thatTukwila's low-income census tracts show a significant number of residents are located more than one mile from the nearest supermarket. TUKWILA COMPREHENSIVE PLAN - 2015 34 PAGE 1-6 Expanding access to healthy food and providing job training opportunities is an important City goal. The City will continue to provide use of the Tukwila Community Center's facilities to programs that empower community members by equipping them with hands-on vocational training to gain their footing in the food industry. By taking part in such programs, the participants, such as refugees and immigran become better integrated into local communities and economies. The City is also exploring, in conjunction with the City of SeaTac, participating in a Food Innovation Network in this area. A Food Innovation Network is a governance structure that promotes increased food sector investment and employment opportunities. A Food Innovation District is a geographic concentration of food -oriented businesses, services and community activities that local governments support through planning and economic development initiatives in order to promote a positive business environment, spur regional food system development, and increase access to local food. As the primary mechanism for establishing this type of program is economic development, further discussion and proposing goals and policies is deferred to the Economic Development element of the Comprehensive Plan. Community Image Tukwila's image, as perceived within the community and region and portrayed by the media, is often at odds with its many positive attributes. The City faces challenges in shifting negative perceptions about public safety and crime to create and communicate an image that better reflects reality, engages residents, and attracts visitors and businesses. Words to describe Tukwila in the future (from City's Strategic Plan) Location" .-.Environment Dive"rse -' Vibrant welc, schorISCrime-free _.accessible Connected innovative -'- Beautiful - _ Friendly --� commun ty- untifim Clea ry. ;—;r: 6"!Mia �,ao�ramc Progressive „h Famif f e TUKWILA COMPREHENSIVE PLAN — 2015 PAGE 1-7 35 GOALS, POLICIES AND STRATEGIES Overall Community Identity GOAL 7.7 A community of inviting neighborhoods and vibrant business districts. POLICIES 1.1.1 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, including those that are representative of the City's diverse population. 1.1.2 Strengthen the image and character ofTukwila's distinct areas and neighborhoods. 1.1.3 Capitalize on the potential that public projects have for serving as symbols of the community, and for expressing the identity and special character of the area where they are located. - " B Chi poop •-�:•�� '1h' .� :r'-•�F '-- � fig'. — X .£>t �,r � '�11.E - �.: •: ��1: i Via' -- Tukwila Village TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 1-8 36 Implementation Strategies Foster public life throughout the City by providing neighborhood focal points and open spaces that are well -integrated into the neighborhoods they serve. Create and enhance public spaces for community use. Develop and use residential and commercial design standards and guidelines that respond to local climate conditions, emphasize conservation, and draw on the region's cultural heritage. Continue to implement the "Walk and Roll" Plan. Support and advance enforcement of existing codes and regulations. Support residential neighborhood identity where appropriate. Review residential development standards. GOAL 7.2 Tukwila has a positive community identity and image. POLICIES 1.2.1 Take a proactive role in generating positive media coverage of the community. 1.2.2 Implement a long-term and consistent effort to shift negative perceptions of crime and public safety in Tukwila. 1.2.3 PromoteTukwila's international diversity as a strength. 1.2.4 Actively promote community engagement of all sectors of the City's diverse population via non-traditional methods such as the Community Connector Program, social media and other innovative techniques. Implementation Strategies Utilize the City's Communications Division to develop a strategy to promoteTukwila's amenities, cultural dynamism and central geographic location. Establish a graphics standard and unified look for City documents and communications. Develop common themes that recognize and promote Tukwila's many positive attributes. TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 1-9 37 Historic Preservation and Cultural Awareness GOAL 1.3 A heritage conserved and interpreted so that Tukwila's citizens recognize connections with the past and celebrate the diverse cultures represented in the community. POLICIES 1.3.1 Identify and protect historically significant properties, structures and sites, in either their present or a nearby location, as determined in a City-wide survey and designation process. 1.3.2 Provide prominent public art and interpretive markers at highly visible locations, explaining the history of the Interurban Trolley, the Green/Duwamish River, Duwamish Hill Preserve, and other important buildings, sites, events or persons. 1.3.3 Establish a process for providing incentives and designating certain structures as landmarks. 1.3.4 Include consideration of features that reflect characteristics of Tukwila's history and cultural diversity in the design review of commercial, public, and multiple -family buildings. 1.3.5 Develop and implement plans, projects and programs to protect and promote the historical legacy of the Green River Valley and its natural and built environment. 1.3.6 The Tukwila Arts Commission shall ensure that Tukwila's characteristics, such as its history and cultural diversity, are considered in public art projects. Tukwila, looking north from S 180th Street - May 1965 1-5 / 1-405 Interchange -February 1973 1 - TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 1-10 Cultural Diversity 1.3.6 Encourage and support communities in celebrating, preserving and transmitting their traditions through cultural and heritage activities, and education. 1.3.7 Develop programs and City-wide events to celebrate the City's cultural diversity. 1.3.8 Enhance linkages with the school districts serving Tukwila to recognize and support the strengths ofTukwila's multi-lingual student body. Implementation Strategies Contract with King County Landmarks Board for historic preservation services. Develop and implement a historic resources designation procedure and program to ensure that these sites continue to be part of the community. Seek certified Local Government status to secure funding and technical assistance for historic preservation. Develop incentives, such as fee waivers or code flexibility, to encourage preservation of historic resources, including those that are currently known and those that have yet to be identified. Increase awareness of the community's heritage by promoting cultural preservation programs and/or educational activities. Develop public art and markers that incorporate local historical references, events and individuals. Promote partnerships between the City and community cultural heritage groups, such as the Tukwila Historical Society. TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 1-11 39 Encourage both public and private stewardship of historic sites and structures. Recognize Tukwila's heritage by naming or renaming parks, streets or other public places with their original names or after major figures and events. Expand the linguistic and cultural competencies of the City Council, staff, commissions and other City representative groups through recruitment, training and hiring. Continue and enhance the relationship with the school districts serving Tukwila through classroom visits and partnerships, internships and scholarship program. Continue the use of Community Connectors, or some other appropriate mechanism to provide outreach to the City's culturally diverse communities on a regular basis. GOAL 7.4 Paleontological and archaeological artifacts and sites with cultural and Native American significance are protected and preserved. POLICIES 1.4.1 Implement existing regulations to ensure that paleontological and archaeological materials and site details are preserved for posterity. 1.4.2 Ensure that the potential for the existence of paleontological and archaeological sites is considered during development of new construction projects. 1.4.3 Identify and protect archaeological resources and culturally significant sites, and develop interpretive information that fosters public appreciation of historical traditions and practices. TUKWILA COMPREHENSIVE PLAN - 2015 M PAGE 1-12 City Boundaries GOAL 1.5 Logical and identifiable boundaries for Tukwila so that residents, workers and visitors know they are entering the City. POLICIES 1.5.1 Maintain, improve and expand distinctive gateway features located at freeway off -ramps and at City limit lines where they cross major arterial streets; use graphics, orientation maps, informational signage, lighting, specimen trees, plantings with seasonal color, artwork, monument forms, or combinations thereof. 1.5.2 Work with affected citizens, property owners and the neighboring cities of SeaTac, Kent and Seattle to develop interlocal agreements that adjust border anomalies. Implementation Strategies Expand community markers at City boundaries, and at key points throughout the community, establishing a clear community signature. Develop a consistent City graphics protocol and program. Commercial Areas GOAL 1.6 Tukwila's vibrant commercial districts are visually attractive, draw visitors, add value to the community and encourage employees and customers to walk, bike and use transit. POLICIES 1.6.1 Enhance the pedestrian environment with street improvements that include curbs, sidewalks or trails, and regularly -spaced street trees. 1.6.2 Develop streetscape design guidelines that support an urban built form and commercial districts with pedestrian -oriented amenities. 1.6.3 As major new development or redevelopment occurs, require through -block pedestrian connections that follow adopted guidelines. TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 1-13 41 1.6.4 Encourage facilities and improvements that support transit use in new development, redevelopment, and street projects. Implementation Strategies Encourage"welcome signs"and information kiosks. Development standards that support all modes of travel. Develop through -block pedestrian guidelines. Urban Design and Development GOAL 1.7 Tukwila's retail areas are characterized by high -quality urban design that accommodates a mix of compatible residential, commercial and light industrial uses. POLICIES 1.7.1 Maintain zoning regulations that allow mixed uses in appropriate commercial districts. 1.7.2 Encourage the development of corridor focal points, while ensuring high -quality design. 1.7.3 Use design guidelines to encourage compatible location and configuration of buildings, parking, recreation areas and pedestrian facilities. 1.7.4 Incorporate substantial landscaping both along street frontages and within parking lots in new development and redevelopment when the buildings are not brought up to the back of sidewalk. 1.7.5 Provide pedestrian weather protection, see -through glass, and distinctive rooflines in new and redeveloped building facades. 1.7.6 Incorporate interesting and pedestrian -friendly features on minor facades adjacent to secondary streets or pedestrian paths. 1.7.7 Encourage placemaking through creative use of signage, art and high -quality materials. 1.7.8 Require that sites have adequate lighting and are designed using crime -reduction principles to increase safety. 1.7.9 Seek opportunities to integrate public art into public improvements. Implementation Strategies Use Crime Prevention Through Environmental Design principles to deter criminal behavior. TUKWILA COMPREHENSIVE PLAN - 2015 42 PAGE 1-14 f,1:i*Ia1141 FAIRS & FESTiALS EMU LAWN I' J PLANTING 4 T L sir •} I�� STREETSCAPE pw-#� _ RAIN GARDENS LIGHTING Fil High -Quality Design Features TUKWILA COMPREHENSIVE PLAN — 2015 PAGE 1-15 43 GOAL 1.8 Tukwila's parking standards are appropriate for each use and provide flexibility for individual circumstances. POLICIES 1.8.1 Maintain and periodically revise parking standards so that they: • are sufficient to meet typical daily demand, • reflect any significant shifts in transit usage, • encourage shared parking between mixed uses and sites, • accommodate car -sharing opportunities, and • allow off -site parking when adjacent uses are not affected. 1.8.2 Maintain and periodically revise standards for bicycle parking. Healthy Living GOAL 1.9 A healthy community where active living and access to affordable, culturally -appropriate and nutritious food is available to all. POLICIES 1.9.1 Develop public, private and non-profit partnerships to support the goal of healthy eating and active living, including education and awareness. 1.9.2 Develop and implement a communication plan and Healthy Tukwila website with information and links about healthy eating, active living and related topics - including strategies for reaching communities who do not speak English or use computers (e.g. translated written as well as verbal). 1.9.3 Provide healthy and culturally -appropriate (e.g. Halal, non -pork, vegetarian) food and beverages in City programs and facilities to promote healthy eating habits. TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 1-16 GOAL 1.10 Food security, local food production and public health are promoted. POLICIES 1.10.1 Explore incentives or regulatory changes to encourage location of healthy food purveyors in underserved areas. 1.10.2 Encourage locally -based food production, distribution, and choice through urban agriculture, community gardens, farmers markets and food access initiatives. 1.10.3 Support the Tukwila Food Pantry and other organizations that help provide food assistance to low-income residents so that all families, seniors, schools and community - based organizations are able to access, purchase and increase intake of fresh fruits, vegetables and other nutritious foods. Implementation Strategies Explore participating in a Food Innovation Network in conjunction with other jurisdictions. Explore establishing a farmers market, mobile produce truck or other forum for the sale of fresh in -season produce. Promote farmers markets, farmstands, community -supported agriculture (CSA) drop-off sites, community gardens, school gardens, home gardens, cottage food businesses, and urban farms. Encourage farmers markets, farmstands and other non -storefront sellers of food to accept WIC/ SNAP benefits and "Double Your Bucks" programs. Review regulations to ensure there are no barriers to urban agriculture, farmers markets and other food access mechanisms. Research issues related to food trucks and develop regulations as appropriate. TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 1-17 45 RELATED INFORMATION Tukwila Strategic Plan Tukwila Capital Improvement Program Food Desert Food Innovation Network TUKWILA COMPREHENSIVE PLAN - 2015 PAGE 1-18 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Economic Development FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: August 10, 2020 SUBJECT: Agreement with Seattle Southside Chamber of Commerce ISSUE Authorize the Mayor to enter into an agreement with the Seattle Southside Chamber of Commerce for the "Southside Promise" initiative. BACKGROUND On July 20, 2020 the City Council approved a lodging tax application from the Seattle Southside Chamber of Commerce for the "Southside Promise" initiative. The initiative will provide outreach, business improvement, technical assistance, and marketing to Tukwila businesses impacted by COVID-19. A formal agreement is needed between the City and Chamber to award the funds. DISCUSSION The services the Chamber will provided under this agreement will be extremely helpful for businesses struggling with the impacts of COVID-19. FINANCIAL IMPACT Total expenditure will not exceed $50,000. The source of funds for this agreement will be the lodging tax (101 fund). No general funds dollars will be used. RECOMMENDATION Forward to August 24 Special meeting Consent Agenda for final action. ATTACHMENTS . Draft agreement. WA Contract Number: City of Tukwila • 6200 Southcenter Boulevard, Tukwila WA98188 CONTRACT FOR SERVICES This Agreement is entered into by and between the City of Tukwila, Washington, a non -charter optional municipal code city hereinafter referred to as "the City," and the Southwest King County Chamber of Commerce (dba, Seattle Southside Chamber of Commerce), hereinafter referred to as "the Contractor," whose principal office is located at 4800 S. 188t" Street, Ste. 250, SeaTac, WA 98188. WHEREAS, the City has determined the need to have certain services performed for its citizens but does not have the manpower or expertise to perform such services; and WHEREAS, the City desires to have the Contractor perform such services pursuant to certain terms and conditions; now, therefore, IN CONSIDERATION OF the mutual benefits and conditions hereinafter contained, the parties hereto agree as follows: 1. Scope and Schedule of Services to be Performed by Contractor. The Contractor shall perform those services described on Exhibit A attached hereto and incorporated herein by this reference as if fully set forth. In performing such services, the Contractor shall at all times comply with all Federal, State, and local statutes, rules and ordinances applicable to the performance of such services and the handling of any funds used in connection therewith. The Contractor shall request and obtain prior written approval from the City if the scope or schedule is to be modified in any way. 2. Compensation and Method of Payment. The City shall pay the Contractor for services rendered according to the rate and method set forth on Exhibit B attached hereto and incorporated herein by this reference. The total amount to be paid shall not exceed $50,000.00. 3. Contractor Budget. The Contractor shall apply the funds received under this Agreement within the maximum limits set forth in this Agreement. The Contractor shall request prior approval from the City whenever the Contractor desires to amend its budget in any way. 4. Duration of Aareement. This Agreement shall be in full force and effect for a period commencing August 1, 2020, and ending, May 1, 2020, unless sooner terminated under the provisions hereinafter specified. 5. Independent Contractor. Contractor and City agree that Contractor is an independent contractor with respect to the services provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither Contractor nor any employee of Contractor shall be entitled to any benefits accorded City employees by virtue of the services provided under this Agreement. The City shall not be responsible for withholding or otherwise deducting federal income tax or social security or contributing to the State Industrial Insurance Program, or otherwise assuming the duties of an employer with respect to the Contractor, or any employee of the Contractor. 6. Indemnification. The Contractor shall defend, indemnify and hold the Public Entity, its officers, officials, employees and volunteers harmless from any and all claims, injuries, damages, losses or suits including attorney fees, arising out of or in connection with the performance of this Agreement, except for injuries and damages caused by the sole negligence of the Public Entity. CA Revised May 2020 Page 1 of 4 • Should a court of competent jurisdiction determine that this Agreement is subject to RCW 4.24.115, then, in the event of liability for damages arising out of bodily injury to persons or damages to property caused by or resulting from the concurrent negligence of the Contractor and the Public Entity, its officers, officials, employees, and volunteers, the Contractor's liability hereunder shall be only to the extent of the Contractor's negligence. It is further specifically and expressly understood that the indemnification provided herein constitutes the Contractor's waiver of immunity under Industrial Insurance, Title 51 RCW, solely for the purposes of this indemnification. This waiver has been mutually negotiated by the parties. The provisions of this section shall survive the expiration or termination of this Agreement. 7. Insurance. The Contractor shall procure and maintain for the duration of the Agreement, insurance against claims for injuries to persons or damage to property which may arise from or in connection with the performance of the work hereunder by the Contractor, their agents, representatives, employees or subcontractors. Contractor's maintenance of insurance, its scope of coverage and limits as required herein shall not be construed to limit the liability of the Contractor to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. A. Minimum Scope of Insurance. Contractor shall obtain insurance of the types and with the limits described below: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of $1,000,000 per accident. Automobile liability insurance shall cover all owned, non -owned, hired and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. 2. Commercial General Liability insurance with limits no less than $2,000,000 each occurrence, $2,000,000 general aggregate and $2,000,000 products -completed operations aggregate limit. Commercial General Liability insurance shall be as least at broad as ISO occurrence form CG 00 01 and shall cover liability arising from premises, operations, independent contractors, products -completed operations, stop gap liability, personal injury and advertising injury, and liability assumed under an insured contract. The Commercial General Liability insurance shall be endorsed to provide a per project general aggregate limit using ISO form CG 25 03 05 09 or an equivalent endorsement. There shall be no exclusion for liability arising from explosion, collapse or underground property damage. The City shall be named as an additional insured under the Contractor's Commercial General Liability insurance policy with respect to the work performed for the City using ISO Additional Insured endorsement CG 20 10 10 01 and Additional Insured -Completed Operations endorsement CG 20 37 10 01 or substitute endorsements providing at least as broad coverage. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State of Washington. B. Public Entity Full Availability of Contractor Limits. If the Contractor maintains higher insurance limits than the minimums shown above, the Public Entity shall be insured for the full available limits of Commercial General and Excess or Umbrella liability maintained by the Contractor, irrespective of whether such limits maintained by the Contractor are greater than those required by this Contract or whether any certificate of insurance furnished to the Public Entity evidences limits of liability lower than those maintained by the Contractor. C. Other Insurance Provision. The Contractor's Automobile Liability and Commercial General Liability insurance policies are to contain, or be endorsed to contain that they shall be primary insurance with respect to the City. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be excess of the Contractor's insurance and shall not contribute with it. D. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best rating CA Revised May 2020 Page 2 of 4 50 of not less than A: VI I. E. Verification of Coverage. Contractor shall furnish the City with original certificates and a copy of the amendatory endorsements, including but not necessarily limited to the additional insured endorsement, evidencing the insurance requirements of the Contractor before commencement of the work. Upon request by the City, the Contractor shall furnish certified copies of all required insurance policies, including endorsements, required in this Agreement and evidence of all subcontractors' coverage. F. Subcontractors. The Contractor shall cause each and every Subcontractor to provide insurance coverage that complies with all applicable requirements of the Contractor -provided insurance as set forth herein, except the Contractor shall have sole responsibility for determining the limits of coverage required to be obtained by Subcontractors. The Contractor shall ensure that the Public Entity is an additional insured on each and every Subcontractor's Commercial General liability insurance policy using an endorsement as least as broad as ISO CG 20 10 10 01 for ongoing operations and CG 20 37 10 01 for completed operations. G. Notice of Cancellation. The Contractor shall provide the City and all Additional Insureds for this work with written notice of any policy cancellation, within two business days of their receipt of such notice. H. Failure to Maintain Insurance. Failure on the part of the Contractor to maintain the insurance as required shall constitute a material breach of contract, upon which the City may, after giving five business days notice to the Contractor to correct the breach, immediately terminate the contract or, at its discretion, procure or renew such insurance and pay any and all premiums in connection therewith, with any sums so expended to be repaid to the City on demand, or at the sole discretion of the City, offset against funds due the Contractor from the City. 8. Record Keepina and Reportina. A. The Contractor shall maintain accounts and records, including personnel, property, financial and programmatic records which sufficiently and properly reflect all direct and indirect costs of any nature expended and services performed in the performance of this Agreement and other such records as may be deemed necessary by the City to ensure the performance of this Agreement. B. These records shall be maintained for a period of seven (7) years after termination hereof unless permission to destroy them is granted by the office of the archivist in accordance with RCW Chapter 40.14 and by the City. 9. Audits and Inspections. The records and documents with respect to all matters covered by this Agreement shall be subject at all times to inspection, review or audit by law during the performance of this Agreement. 10. Termination. This Agreement may at any time be terminated by the City giving to the Contractor thirty (30) days written notice of the City's intention to terminate the same. Failure to provide products on schedule may result in contract termination. If the Contractor's insurance coverage is canceled for any reason, the City shall have the right to terminate this Agreement immediately. 11. Discrimination Prohibited. The Consultant, with regard to the work performed by it under this Agreement, will not discriminate on the grounds of race, religion, creed, color, national origin, age, veteran status, sex, sexual orientation, gender identity, marital status, political affiliation, the presence of any disability, or any other protected class status under state or federal law, in the selection and retention of employees or procurement of materials or supplies. 12. Assignment and Subcontract. The Contractor shall not assign or subcontract any portion of the services contemplated by this Agreement without the written consent of the City. 13. Entire Agreement: Modification. This Agreement, together with attachments or addenda, represents the entire and integrated Agreement between the City and the Contractor and supersedes all prior negotiations, representations, or agreements written or oral. No amendment or modification of this Agreement shall be of any force or effect unless it is in writing and signed by the parties. CA Revised May 2020 Page 3 of 4 51 14. Severability and Survival. If any term, condition or provision of this Agreement is declared void or unenforceable or limited in its application or effect, such event shall not affect any other provisions hereof and all other provisions shall remain fully enforceable. The provisions of this Agreement, which by their sense and context are reasonably intended to survive the completion, expiration or cancellation of this Agreement, shall survive termination of this Agreement. 15. Notices. Notices to the City of Tukwila shall be sent to the following address: City Clerk, City of Tukwila 6200 Southcenter Blvd. Tukwila, Washington 98188 Notices to the Contractor shall be sent to the address provided by the Contractor upon the signature line below. 16. Aaalicable Law: Venue: Attorney's Fees. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington. In the event any suit, arbitration, or other proceeding is instituted to enforce any term of this Agreement, the parties specifically understand and agree that venue shall be properly laid in King County, Washington. The prevailing party in any such action shall be entitled to its attorney's fees and costs of suit. DATED this day of , 20_ CITY OF TUKWILA CONTRACTOR Allan Ekberg, Mayor ATTEST/AUTHENTICATED: City Clerk, Christy O'Flaherty APPROVED AS TO FORM: Office of the City Attorney M Printed Name and Title: Address: CA Revised May 2020 52 Page 4 of 4 Exhibit "A" Scope of Services The Contractor shall help the City with outreach, business improvement and technical assistance to help businesses with re -opening efforts impacted by the COVID-19 pandemic. Southside Promise: The Contractor shall provide advocacy, technical assistance and support as well as marketing and promotion to help businesses reopen safely and boost consumer confidence to support local businesses. The Contractor shall provide the following services for the Southside Promise Campaign. a) Promoting the Campaign. Contractor shall work with the city and other parities to issue a press release announcing the campaign. The City shall be able to review and edit the press release. The City will be listed as a sponsor or supporter or participant for the campaign. b) Business Outreach. The Contractor will invite Tukwila businesses to participate in the Campaign in accordance with the city's desires. Manage campaign participants and setting up a system to allow businesses to request technical assistance, such as the "Safe Start Toolkits" online. Note, all Tukwila businesses are eligible for free participation regardless of Chamber membership status. c) Technical Assistance. The Contractor shall coordinate and provide technical free assistance to any Tukwila businesses requesting assistance, regardless of Chamber membership status Technical assistance will include information to assist businesses in reopening and operating to meet public hearth COVID-19 requirements, adjusting their business operations, and other assistance to provide support for businesses during the COVID-19 pandemic. d) Sponsorships. Contractor and City shall work to identify possible sponsors (both cash and in -kind contributions). Potential sponsors shall be approved by both Contractor and City. Contractor shall manage sponsorship agreements, acceptance of any funds from the sponsor, and any other sponsorship management._ e) Seattle Southside Campaign Management. The Contractor will provide staff and volunteers to assist with managing any onsite campaign needs that may be necessary. Including but not limited to: review of toolkit, management of reopening plans and implementation, coordination with marketing and partners, etc. f) Social media and photography. The Contractor will provide photographic services as well as contribute social media content that meets the goals of the city to commemorate the effort. The City shall have the rights to use any photography produced for the campaign. g) Marketing and Advertising. Contractor shall identify and execute opportunities to market and promote the campaign. As appropriate, Contractor shall identify the City as a sponsor of the campaign. h) Webinar. Contractor shall produce a technical assistance webinar to assist businesses with complying with COVID-19 reopening requirements. i) Other Digital Initiatives. Contractor shall provide support for the City's SavingLocalKC and Great Tukwila Carryout campaign. Support includes assisting securing press coverage of SavingLocalKC, assisting businesses set up e-commerce platforms, and promoting both SavingLocalKC and the Great Tukwila Carryout via the Contractor's digital assets. CA Revised May 2020 Page 5 of 4 53 Exhibit "B" Compensation Compensation for the Southside Promise outlined above shall be as follows: The City agrees to compensate the Contractor $50,000 for the services outlined in the scope of work outlined in Exhibit "A". The City shall provide an initial payment of $10,000 to the Contractor. Thereafter Contractor shall bill the City monthly as follows: Date of Invoice Amount August 31, 2020 $5,000.00 September 30, 2020 $5,000.00 October 31, 2020 $5,000.00 November 30, 2020 $5,000.00 December 31, 2020 $5,000.00 January 31, 2021 $5,000.00 February 28, 2021 $5,000.00 March 31, 2021 $5,000.00 City shall have 30-days from date of invoice to remit payment. Reporting Contractor shall provide the following monthly reports with each request for payment: a. Web analytics showing total number of sessions and view of the campaign's webpage. City may ask for other information available on google analytics or other service used by the Contractor. b. Total number of Tukwila businesses provided assistance by Contractor. c. Total number of "Safe Start Toolkits" distributed to Tukwila businesses. d. Examples of any press releases, social media, or other media colleteral highlighting the campaign. e. With the final invoice for this Agreement, Contractor shall submit the following lodging tax reporting information to the City: a. Overall attendance at your proposed event/activity/facility. b. Number of people who will travel fewer than 50 miles for your event/activity. c. Number of people who will travel more than 50 miles for your event/activity. d. Of the people who travel more than 50 miles, the number of people who will travel from another country or state. e. Of the people who travel more than 50 miles, the number of people who will stay overnight in Tukwila. f. Of the people staying overnight, the number of people who will stay in PAID accommodations (hotel/motel/bed-breakfast) in Tukwila. g. Number of paid lodging room nights resulting from your proposed event/ activity/facility (for example: 25 paid rooms on Friday and 50 paid rooms on Saturday = 75 paid lodging room nights) CA Revised May 2020 54 Page 6 of 4 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Economic Development FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: August 10, 2020 SUBJECT: Lodging Tax Allowable Use and Procedure for Use of Funds ISSUE Briefing on allowable use of lodging tax funds and procedure for approving for the use of funds BACKGROUND In October of 2016 staff presented two memorandums to the City Council which outlined applicable State law provisions for the use of lodging tax funds and the procedure for how the funds can be used, subject to the requirements of State law and the City Council's legislative process. Both memorandums are being provided to the City Council again for informational purposes. FINANCIAL IMPACT None. RECOMMENDATION Forward to August 24 Committee of the Whole meeting for discussion. ATTACHMENTS • Memorandum, Permitted Uses of Lodging Tax Funds, dated September 23, 2016. • Memorandum, Lodging Tax Approval Process, dated September 22, 2016. 55 56 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Safety Committee FROM: Brandon J. Miles, Business Relations Manager CC: Mayor Ekberg DATE: September 23, 2016 SUBJECT: Permitted Uses of Lodging Tax Funds. ISSUE The City charges a 1 % special excise tax on the sale of or charge made for overnight lodging stays. State law limits how these funds can be used. This memo outlines the limits on the use of lodging tax and discusses permitted and prohibited use of the funds'. BACKGROUND Revised Code of Washington (RCW) 67.28.1815 limits the use of lodging tax funds as follows: [A]II revenue from taxes imposed under this chapter shall be credited to a special fund in the treasury of the municipality imposing such tax and used solely for the purpose of paying all or any part of the cost of tourism2 promotion 3, acquisition of tourism -related facilities, or operation of tourism -related facilities. RCW 67.28.1816 goes into further detail about permitted expenditures of lodging tax funds, specifying: Lodging tax revenues under this chapter may be used, directly by any municipality or indirectly through a convention and visitors bureau or destination marketing organization for. - (a) Tourism marketing; ' RCW 67.28 places strict limits on the type of entities eligible to receive lodging tax funds. Additionally, approving expenditures of lodging tax funds is a two-step process, requiring review by the City's Lodging Tax Advisory Committee and City Council. State Law gives considerable authority to the City's Lodging Tax Advisory Committee in reviewing and approving funding requests. For more information on entities eligible to receive funding and the process for awarding funds, see the memo dated September 22, 2016, entitled, "Lodging Tax Approval Process." 2 RCW 67.28.080 defines "Tourism" as "economic activity resulting from tourists, which may include sales of overnight lodging, meals, tours, gifts, or souvenirs." 3 RCW 67.28.080 (6) defines "Tourism promotion" as "...activities, operations, and expenditures designed to increase tourism, including but not limited to advertising, publicizing, or otherwise distributing information for the purpose of attracting and welcoming tourists; developing strategies to expand tourism; operating tourism promotion agencies; and funding the marketing of or the operation of special events and festivals designed to attract tourists." 4 RCW 67.28.080 (1) provides the following definition of "Acquisition" ..."includes, but is not limited to, siting, acquisition, design, construction, refurbishing, expansion, repair, and improvement, including paying or securing the payment of all or any portion of general obligation bonds, leases, revenue bonds, or other obligations issued or incurred for such purpose or purposes under this chapter." 57 INFORMATIONAL MEMO Page 2 (b) The marketing and operations of special events and festivals designed to attract tourists; (c) Supporting the operations and capital expenditures of tourism -related facilities5 owned or operated by a municipality or a public facilities district created under chapters 35.57 and 36.100 RCW; or (d) Supporting the operations of tourism -related facilities owned or operated by nonprofit organizations described under 26 U. S. C. Sec. 501(c)(3) and 26 U. S. C. Sec. 501(c)(6) of the internal revenue code of 1986, as amended. DISCUSSION Several Councilmembers have inquired about permissible uses of lodging tax funds. Based upon the limitations outlined above, staff would like to provide some guidance on the future use of lodging tax funds. A simple question that can be asked to help determine if lodging tax funds can be used is "Is the activity, operation or expenditure designed to increase tourism or welcome tourists to the City?" If the answer is yes, then lodging tax might be able to be used after further analysis of the specific funding request. Tourism could include people who travel and stay overnight in the City (overnight visitors) or those who travel to the Tukwila for the day (day visitors). Economic activity from Tukwila residents would not be considered tourism. The following lists examples of activities, operations and expenditures that would likely be eligible for lodging tax funding. This is not intended to be an exhaustive list. • Marketing and advertising intended to bring overnight visitors to the City. • Marketing and advertising intended to bring day visitors to the City. • Installation of new "way finding" signs for tourists and installation of City identification signs. • Sponsoring, operating, and marketing of special events or festivals, either by the City or third parties, if designed to bring tourists to the City. • Installation of banners on street poles or across city streets if either welcoming tourists to the City or promoting upcoming events. • Capital improvements, such as park improvements or trail improvements, designed to be used primarily by tourists. • Maintenance of parks primarily used by tourists, such as Fort Dent Park or the Green River trail. 5 RCW 67.28.080 (7) defines "Tourism -related facility" as, "...real or tangible personal property with a usable life of three or more years, or constructed with volunteer labor that is: (a)(i) Owned by a public entity; (ii) owned by a nonprofit organization described under section 501(c)(3) of the federal internal revenue code of 1986, as amended; or (iii) owned by a nonprofit organization described under section 501(c)(6) of the federal internal revenue code of 1986, as amended, a business organization, destination marketing organization, main street organization, lodging association, or chamber of commerce and (b) used to support tourism, performing arts, or to accommodate tourist activities." 58 C:\Users\Brandon-m\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\LWDZNIVO\Memo 2 Eligable Activites.dou INFORMATIONAL MEMO Page 3 • Supporting marketing and operations of government entities (City of Tukwila and SSRTA) or nonprofit organizations, when activities performed are designed to attract tourists to the City or welcome tourists to the City. The following lists examples of activities, operations and expenditures that would likely NOT be eligible for lodging tax funding. This list is not intended to be exhaustive. • Funding basic general governmental operations of the City6 • Marketing and advertising directed at residents. • Way finding signs in residential areas intended for residents. • Sponsoring of special events or festivals intended for residents. • Capital improvements, such as park improvements, intended for residents (such as at parks used primarily by residents). • Maintenance of parks primarily used by residents, such as Hazelnut Park. • Capital expenditures for tourism related facilities owned or operated by a non-profit. Reportinq Requirements RCW 67.28.1816 requires that entities receiving lodging tax fund report metrics back to the municipality. Per State Law, the following is required to be submitted to the City in the project close out for a specific funding request: 1. Actual number of people traveling for business or pleasure on a trip. 2. Number of people traveling for business and pleasure and staying in paid accommodations in the City. 3. Visitors who traveled more than 50 miles or more from their place of residence of businesses for the day or staying overnight. 4. Visitors who traveled from another county or state. It is important to note that the City's Lodging Tax Advisory Committee is granted significant authority by RCW 67.28.1816 when reviewing lodging tax requests. The City Council cannot reverse a decision of the Committee if the Committee chooses not to approve a specific funding application. Traditionally, the Committee has considered the metrics outlined above very strongly when considering funding requests. RECOMMENDATION Information and discussion only. Forward to the October 10, 2016 Committee of the Whole meeting for discussion by the full Council. ATTACHMENTS • None. 6 The City is permitted to charge special funds, like the lodging fund, for costs incurred by the general fund to support the special funds. C:\Users\Brandon-m\AppData\Local\Microsoft\Windows\INetCache\Content.Outlook\LWDZNIVO\Memo 2 Eligable Activites.docx 59 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance and Safety Committee FROM: Brandon J. Miles, Business Relations Manager CC: Mayor Ekberg DATE: September 22, 2016 SUBJECT: Lodging Tax Approval Process ISSUE The City charges a 1 % special excise tax on the sale of or charge made for overnight lodging stays. The use of these funds is limited to tourism promotion. The following memo outlines the steps the City must follow in order to expend these funds, as provided by State law. Staff is seeking input from the City Council on the process for awarding lodging tax funds in 2017 and beyond. BACKGROUND As required by Revised Code of Washington (RCW) 67.28.1815, the City deposits lodging tax funds into a special fund and uses the funds, "...solely for the purpose of paying all or any part of the cost of tourism, promotion, acquisition of tourism related facilities, or operation of tourism - related facilities'." These funds are used to support a variety of tourism promotion activities by the City and third parties, such as the Museum of Flight and Starfire Sports. RCW 67.28.1816 limits the entities eligible to apply for direct lodging tax funding to the following: 1. Cities, towns, and counties of Washington State; 2. Convention and Visitors Bureaus; 3. Public Facilities Districts; and 4. Non -Profits organized as either a 501(c)(3) or 501(c)(6). Approving lodging tax expenditures is a two-step process involving both the City's Lodging Tax Advisory Committee (LTAC) and the City Council. As discussed below, State Law provides considerable authority to the City's LTAC is reviewing and approving request to use lodging tax funds. Lodging Tax Advisory Committee In 1997, the legislature authorized the creation of local lodging tax advisory committees to review and comment on any new lodging tax, increase in the tax rate, repeal of an exemption or change in the use of the lodging tax revenue (RCW 67.28.1817). The City of Tukwila's LTAC was created via Council Resolution No. 1381 and the membership of the committee expanded via Council Resolution No.1533. Membership of the City's LTAC includes: • Four businesses where the lodging tax is collected, such as hotels and motels; • Four businesses or organizations engaged in activities eligible to be funded by the tax, such as non -profits, entertainment destinations, retailers and restaurants; and ' See memo entitled "Permitted Use of Lodging Tax Funds," dated August 30, 2016, which provides more details on allowable expenditures of lodging tax funds. 61 INFORMATIONAL MEMO Page 2 • One City elected official, traditionally the Council President, who serves as the chair of the LTAC. In 2013, the legislature amended RCW 67.28.1816 and expanded the role of the local lodging tax advisory committees. Now, in municipalities with a population of over 5,000, requests to use lodging tax funds — including requests by the municipality itself — must be submitted directly to the lodging tax advisory committee. This means that the City of Tukwila must submit an application to the LTAC to expend lodging tax funds for City of Tukwila activities. The lodging tax advisory committees review the applications for funding in a public meeting and then forwards a list of candidates to the municipality for final action (RCW 67.28.1816). As part of the application process, a requestor must provide to the City estimates on how the lodging tax funds will result in increase in the number of people traveling for businesses or pleasure on a trip. Citv Council Review Process in 2016 In June of 2016, staff took funding request applications reviewed by the City's LTAC to the Finance and Safety Committee. After Finance and Safety review, the applications were forwarded to the Committee of the Whole for discussion and review and then forwarded to a Regular City Council meeting for final action. Once the Council approved the funding requests, the recipients entered into service contracts with the City. Washinaton State Attornev General's Informal Or)inion As part of the 2016 applications, reviewed by the City Council in June of this year, staff informed the City Council that the Council had two options with each application: (1) The Council could concur with the City's LTAC and agree to fund an application as presented or (2) the City Council could choose not to fund a specific application. Staff informed Council it could not change the specific dollar amounts recommended by the LTAC based on interpretations of RCW 67.28 provided by Municipal Research Service Center and the Association of Washington Cities. On August 17, 2016, the Washington State Attorney General's Office ("AG's Office") issued an informal opinion regarding whether a municipality could change the dollar amounts recommended by the local lodging tax advisory committee. 2 The AG's Office opined that a municipality can change specific dollar amounts recommended by the lodging tax advisory committee, provided the municipality waits 45-days before taking final action and that the lodging tax advisory committee is provided an opportunity to comment on the revised dollar amount.3 However. the AG's Office cautioned that a municipality cannot choose to fund a funding request which was not approved by the LTAC. While an informal Attorney General 2 See AG's Informal Opinion dated August 17, 2016, available at http://mrsc.org/getmedia/0562599b- d073-4b55-8817-daal b9cf39a3/w3ag081616.aspx. 3 Specifically, the Opinion states: When awarding lodging tax revenues pursuant to RCW 67.28.1816(2)(b)(ii), a municipality may award amounts different from the local lodging tax advisory committee's recommended amounts, but only after satisfying the procedural requirements of RCW 67.28.1817(2), according to which the municipality must submit its proposed change to the advisory committee for review and comment at least forty-five days before final action on the proposal. ZACouncil Agenda ItemsWayors Office1LTAC BusinessesWemo 1, Process for Lodging Tax Funds.docx 62 INFORMATIONAL MEMO Page 3 opinion is not binding on the City, this opinion provides helpful guidance and would be considered persuasive authority should a court ever examine this issue. DISCUSSION Staff would like Council concurrence for approving lodging tax funding request in 2017 and beyond, as outlined below. This proposed process is consistent with adopted City Council process for legislative items, RCW 67.18, and the AG's Office Informal Opinion. 1. Applications to use lodging tax funds are made directly to the LTAC, via its designated staff member in the Mayor's Office. The City accepts applications on a rolling basis in order to respond to proposed activities and events, which might arise during the year. 2. The LTAC reviews the applications for use of lodging tax funds at an open public meeting or at several opening meeting, if the LTAC wants additional time to consider an application. If LTAC recommends to the City Council that the application be approved it must recommend a specific dollar amount. Should LTAC recommend an application not be approved it will cease moving forward. 3. The application and LTAC's approval recommendation is then forwarded to Finance and Safety for its review. 4. Finance and Safety reviews and then forwards its recommendation to the full City Council. 5. The full Council reviews and then takes final action on the funding request. If the Council concurs with LTAC's recommended amount, no further Council action on the application is required. 6. If the Council desires to modify the amount to be provided to a specific requestor, the City Council must provide 45-days' notice to the LTAC before taking final action. During this 45-day period, the LTAC will meet and consider the City Council's modification and either provide a comment letter to the City Council or choose not to comment. After the 45-day period had concluded, the City Council could take final action, after considering the LTAC's comment letter. 7. The City enters into a service or sponsorship agreement with the requestor. If the amount of the agreement is over $40,000 it would require review by the City Council, following the City Council's adopted process for review of agreements. RECOMMENDATION Forward to the October 10, 2016 Committee of the Whole meeting for briefing and discussion. Staff will bring a motion forward to the October 17, 2016 Regular Council meeting adopting a process for approval of lodging tax applications. ATTACHMENTS • 2016 Lodging Tax Fund Application. Z:\Council Agenda Items\Wayors Off ice\LTAC Businesses\Memo 1, Process for lodging Tax Funds.docx 63 m City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Economic Development FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: August 11, 2020 SUBJECT: Historical Usage of Lodging Tax Funds ISSUE Briefing on the historical usage of lodging tax funds by the City of Tukwila. BACKGROUND The City collects a 1 % charge on eligible stays at hotels, motels, and Airbnbs in the City. Under Washington State law these funds can only be used for tourism promotion activities. With nearly 2,000 hotel rooms, the City is in the top five of lodging tax collection in King County, with just over $800,000 in funds collected in 2019. As previously discussed with the Committee, lodging tax funds can only be used for certain tourism promotion activities in the City. Additionally, any proposal to use the funds requires a two-step approval process involving the Lodging Tax Advisory Committee and the City Council. The following non -exhaustive list outlines some of the past activities that have used lodging tax fundsd. This list is being provided to help with the future discussion we will have as part of the lodging tax six -year financial plan. Recipient/ActivityRecipient/Activity Approximant Amount Notes Seattle Southside Regional Just over $200,000 per year. SSRTA is the City's primary Tourism (SSRTA) destination marketing organization. The amount provided to SSRTA is a recommended amount provided in in the Interlocal Agreement with the Cities of Des Moines, Tukwila, and SeaTac. The lodging tax funds are used in conjunction with the TPA fee to bring visitors from outside the area to the City. Rock -in -Roll Marathon Over $300,000 for a three Large marathon, which started commitment in 2010, 2011, in Tukwila and ended in and 2012. Seattle. The marathon now is fully with the City of Seattle. Starfire Sports Just over $40,000 until 2019. Funds are used to support No funds were requested for tournaments at Starfire 2020 due to COVID-19. Sports. These tournaments bring in traveling teams from throughout the nation. Museum of Flight For 2019, the Museum Funds were used to sponsor received $100,000. Previous activities and events at the 65 INFORMATIONAL MEMO Page 2 years the amount has ranged Museum between $25,000 and $50,000. Seattle Southside Chamber of For 2020, the Chamber is Funds are used to help Commerce receiving $50,000. Up until support the Chamber's 2015 the Chamber use to activities. For 2020 the funds regularly request lodging tax will be used to help with funds from the City. COVID-19 business recovery. Renton Chamber of $20,000 in 2018. Funds were used to sponsor Commerce (RenCon). the Renton Comic Con (now known as Kin Con). City of Tukwila, Drag Queen $10,000 in 2018. This event was done in Bowling. partnership with SSRTA. City of Tukwila, Experience $100,000 in 2020. Funds are used for social Tukwila media and development of a website. City of Tukwila, International $15,000 in 2019. Sponsorship of two food truck Food Truck Rodeo events at Westfield Southcenter. City of Tukwila, $185,000 in 2020. Marketing and recovery SavingLocalKC. associated with COVID-19 City of Tukwila, Tukwila Pond $125,000 in 2019, work will be Parks and Recreation is the Master Plan. completed in 2020 and 2021. lead on this request. City of Tukwila, Southcenter $40,000 in 2019 (work will be Art installation and completion Art done in 2020). of a master plan along Baker Blvd. City of Tukwila, Basic Between $50,000 and Funds are used for Operations $100,000 since 2017. administrative costs associated with the lodging tax program; small marketing activities; and the indirect cost allocation. Starting in 2019 50% of the Business Relations Manager labor costs were included in this funding. Rave Foundation $10,000 in 2017 and 2018. Sponsorship of a 5k Run with the non-profit arm of Seattle Sounders FC. FINANCIAL IMPACT None. RECOMMENDATION Discussion only. ATTACHMENTS . None. 66 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/CC Docs/Old W/2020 Info Memos/Memo, Historical Use of Lodging Tax Funds.doc City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Economic Development FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: August 10, 2020 SUBJECT: Lodging Tax Revenue and Ending Fund Balance ISSUE Lodging tax revenue and ending fund balance discussion. BACKGROUND The City collects a 1 % charge on eligible stays at hotels, motels, and Airbnbs in the City. Under Washington State law these funds can only be used for tourism promotion activities. With nearly 2,000 hotel rooms, the City is in the top five of lodging tax collection in King County, with just over $800,000 in funds collected in 2019. This was the best year on record for the City. COVID- 19 has drastically impacted the lodging industry due to pullback in people travelling for work and pleasure. Even as travelers return, it could be several years before the City returns to its pre- COVID-19 lodging tax revenue. The chart below outlines staff's initial, pre-COVID-19 lodging tax revenue projections and revised projections. Year 2020 2021 2022 2023 2024 2025 2026 Pre- $800,000 $840,000 $882,000 $926,000 $972,405 $1,021,025 $1,072,076 COVID- 19 Revenue Forecast Revised $400,000 $450,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 Forecast Beginning this year, the City has started to draw down its lodging tax reserves due the pullback in revenue and to respond to the tourist economic impacts associated with COVID-19. A copy of the current six -year financial model, showing forecasted ending fund balance, is attached with this staff report. DISCUSSION If we maintain current expenditures and there is no increase in revenue the City will begin to run out of funds to support identified tourism programs starting in 2024. As part of the comprehensive review of the City's tourism program the City will need to identify the elimination and deferral of some programs. No decision is needed at this time. Staff will work with the City Council and the Lodging Tax Advisory Committee on priority programs. FINANCIAL IMPACT Not applicable. 67 INFORMATIONAL MEMO Page 2 RECOMMENDATION Discussion only. ATTACHMENTS • Lodging Tax Six Year Financial Model, Updated July 14, 2020. 68 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/CC Docs/Old W/2020 Info Memos/Memo, Lodging Tax Revenue and Ending Fund Balance, FINAL.doc M. DRAFT, DISCUSSION ONLY Lodging Tax Six Year Financial Plan Forecasted Actuals Year 2019 2020 Budget 2020, Updated 2021 2022 2023 2024 Revenue Orginal Estimated Amount $ 800,000 $ 800,000 $ 840,000 $ 882,000 $ 926,100 $ 972,405 Lodging Tax Collection (Revised, 5/7/20) $ 819,095 $ 800,000 Expenses Marketing, Sales, Major Sponsorships Contracted DMO Services $ 202,500 $ 202,500 SSRTA Emergency Funding $ 75,000 Major Sponsorships Funding Request $ 150,000 $ 150,000 Seattle Seawolvs Seattle Southside Chamber of Commerce $ - Virtual Sports $ 30,000 Small Event Development and Support $ 10,000 $ 15,000 Digital Development and Website (Experience Tukwila) $ $ 88,375 SavingLocalKC.com $ 154,170 Destination Development Wayfinding Plan Development and Installation $ $ 50,000 SouthcenterArt lnvestements $ 600 $ 39,400 Tukwila Pond $ $ 125,000 World Cup Planning and Activiation $ $ - Ad minstration/Operations Salary $ 58,040 $ 56,586 Benefits $ 18,124 $ 18,411 City Overhead Charge $ 18,741 $ 19,416 Adminstration Expenses $ 21,385 $ 30,000 $ 116,290 Total Expenditures: $ 479,390 $ 1,053,858 Starting Year Balance: $ 1,617,625 $ 1,957,330 Ending Fund Balance: $ 1,957,330 $ 1,703,472 Totals $ 400,000 $ 450,000 $ 600,000 $ 700,000 $ 800,000 $ 4,569,095 $ 202,500 $ 202,500 $ 202,500 $ $ 75,000 $ 50,000 $ 150,000 $ 150,000 $ $ 10,000 $ 50,000 $ 5,000 $ 15,000 $ 15,000 $ $ 88,375 $ 50,000 $ 50,000 $ $ 154,170 $ 100,000 $ 150,000 S 100,000 S $ 39,400 $ 75,000 $ 75,000 $ $ 125,000 $ 200,000 $ 200,000 $ $ 40,000 $ 40,000 $ $ 53,870 $ 59,674 $ 60,859 $ $ 18,411 $ 18,963 $ 19,532 $ $ 19,416 $ 19,998 $ 20,598 $ $ 30,000 $ 30,000 $ 30,000 $ $ 1,021,142 $ 1,011,136 $ 963,490 $ $ 1,957,330 $ 1,336,188 $ 775,052 $ $ 1,336,188 $ 775,052 $ 411,563 $ 202,500 $ 202,500 $ 1,417,500 150,000 $ 150,000 $ 950,000 15,000 $ 15,000 $ 90,000 50,000 $ 50,000 $ 376,750 100,000 $ 100,000 $ 600,000 75,000 $ 75,000 $ 379,400 200,000 $ 200,000 $ 1,050,000 50,000 $ 50,000 $ 180,000 62,685 $ 64,565 $ 416,279 20,118 $ 20,722 $ 134,281 21,216 $ 21,853 $ 141,239 30,000 $ 30,000 $ 201,385 976,519 $ 979,640 $ 5,936,835 411,563 $ 135,043 135,043 $ (44,597) Notes Salary for Bus Manager is split 50/50 between general fund and lodging tax. Salary savings reflects credit to lodging tax for 14 furlough days for 2020. Revenue Increase(2021-2024) 0.05 Salary is assumed to rise 3% per year. 0.03 Benefits are assuemd to rise 3% per year. 0.03 Indirect Cost Allocation is assumed to increase 3% per year. 0.03 This document does not bind the City to provide funds nor does it authorize any funding. All use of lodging tax funds must be approved by LTAC and the City Council through an application process. Overhead charge is charged to all special accounts and recoups the cost of the general fund to support the lodging tax fund. This include facilities, IT services, legal, and accounting. Cells in yellow show pending applications. Cells in green show approved applications. Cells in red are budgeted items that have not been encumbered. 7/14/2020 BJ M 70 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Economic Development FROM: Brandon Miles, Business Relations Manager CC: Mayor Ekberg DATE: August 10, 2020 SUBJECT: 2020 Business License Fee Deferral ISSUE Planning and Economic Development (PED) requested a discussion on business license fee deferral at its May 4, 2020 meeting. BACKGROUND At its May 4, 2020 meeting PED requested information regarding possibly deferring business license fees due to COVID-19. Starting in 2019 the City of Tukwila was required to have its business license issued by the State of Washington. The State has mandated that all cities and towns use the State's system to provide a one stop shop for both municipal business licenses and the required State of Washington business license. When a business submits its business license to the State a fee is paid for the City's portion of the business license and the State's portion. Since the State needs uniformity in processing business license applications there are limits on what the City can and cannot due under the State's system. For 2020 the State of Washington issued just over 1,900 business licenses to businesses conducting activities in the City of Tukwila. This number includes businesses located outside of the City, but which do work within the city limits and non -profits that are required to obtain a license yet are exempt from the City's business license fee. Tukwila's business license fee is based on the total number of full time and part time employees the business has. For full time, the 2020 fee is $112.00 per employee and for part time the fee is $56 per employee. So far for 2020 the City has collected just over $2.2 million in business license fees. All funds collected go into the general fund. The following chart outlines the fee based on business size. Business Size (based on fee paid). Total Number of Businesses in Category Total Fees Paid $25,000 and up. 9 $440,449 $10,000 to $24,999 22 $319,960 $5,000 to $9,999 57 $401,073 $4,000 to $4,999 31 $141,712 $3,000 to $3,999 33 $112,301 $2,000 to $2,999 87 $214,598 $1,000 to $1,999 180 $252,069 $500 to $999 237 $165,789 $150 to $499 469 $139,379 $15 to $498 (companies with one or fewer emplo ee 772 $66,337 71 INFORMATIONAL MEMO Page 2 DISCUSSION Any proposal to deferral or eliminate business fees in 2021 would result in additional revenue shortfalls for the City. The City would need to identify budget cuts or additional revenue to offset the loss. It should also be noted that the total business license fee collected in 2021 will likely go down next year due to businesses reducing their work force. Even limiting a deferral program to small businesses (businesses that pay less than $500) would result in significant loss of revenue. The nearly 1,200 businesses in this category paid just over $200,000 in the business license fee for 2020. Staff also believes that the business license fee is small given the total operating costs for most businesses. Thus, the City would eliminate revenue for a large volume of businesses, while the benefit could be minimal to the business. Some micro businesses may welcome the fee reduction; however, it's unclear if such a reduction would assist in the business overall survival. Many of these business licenses, while small, were issued for large corporations doing business in the City. It is unclear if the City would create a program to apply to certain size businesses or certain type of businesses (non -chain, locally owned) given the possible limitations in the State's software system. Any changes to the business license fee must be received by the State at least 75 days prior to the effective change date. Since many businesses will pay their 2021 business license in December of 2020, the State would need any changes to the fee schedule by mid -September in order for the change to be in effect when businesses begin the renewal process later this year. FINANCIAL IMPACT Depends if a program was initiated and which size businesses were eligible for the program. RECOMMENDATION Discussion only. Staff does not recommend the City implement a business license fee deferral program for 2021. ATTACHMENTS • None. 72 https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/CC Docs/Old W/2020 Info Memos/Staff Memo, August 10, FINAL.doc