HomeMy WebLinkAboutPCD 2022-03-07 Item 1D - Update - Economic Development PlanCity of Tukwila
Allan Ekberg, Mayor
INFORMATIONAL MEMORANDUM
TO: Planning and Community Development Committee
FROM: Derek Speck, Economic Development Administrator
CC: Mayor Ekberg
DATE: March 1, 2022
SUBJECT: Economic Development Plan
ISSUE
Staff plans to issue a Request for Qualifications (RFQ) to select a consultant to help the City
create an economic development plan and welcomes input from the Committee on the project
scope and outreach.
BACKGROUND
One of the strategies in the Economic Development chapter ("Element") of the City's
Comprehensive Plan is to create an economic development plan to further achieve the City's
vision for its economy. In late 2021 the Council amended the 2022 budget to include $150,000
to create that plan.
DISCUSSION
The City's Comprehensive Plan, Strategic Plan, Zoning, Capital Improvement Plan, other
infrastructure plans, and the Parks, Recreation and Open Space (PROS) Plan provide
significant vision and strategy related to economic development. The Comprehensive Plan
even includes a chapter on economic development and a copy is attached with this memo to
provide examples of the types of issues that may be related.
Even with the many existing plans that relate to the City's economy, creating an economic
development plan would provide an opportunity to review and update the City's vision for its
economy and provide additional context, options, and guidance for staff and policy makers.
Due to the close relationship between the Comprehensive Plan and a new economic
development plan, the City's Economic Development staff would coordinate closely with the
City's Community Development staff.
Staff anticipates the scope of the project would be:
1. Basic Plan: This work includes hiring a consultant to conduct research, analysis, writing,
graphic design, and producing a document. It would also include standard community
outreach such as an online survey, a limited phone survey, and some public meetings.
2. Expanded Outreach: This work may include multiple community-based organizations or
firms to assist with outreach to various groups based on culture, language, age, etc. It
would include tailoring those contracts to work with those groups on outreach methods
appropriate for each group. These methods may include surveys, conversations,
interviews, focus groups, or other ways. As appropriate, methods would include
interpretation, translation, childcare, and participation incentives.
It is important to note that the City plans to engage with our community on many projects
this year and we need to be sensitive to "survey fatigue" or confusion. Economic
Development staff adjust the outreach to coordinate with these other efforts.
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INFORMATIONAL MEMO
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Staff would determine the specific outreach process in coordination with the consultant,
once they are selected.
3. Improved Business Contacts Database: This purpose of this component is to improve
our business contacts database which would improve outreach needed to develop the
Plan but would also improve ongoing outreach. The component would include a
combination of purchasing a software tool and contacting our businesses to update
and/or collect their contact information, including the language their local management
prefers. This database could help other departments with their business outreach (for
example, in emergencies) and staff would coordinate with those other departments.
There would be an ongoing maintenance cost but we do not yet have an estimate for
that.
Staff anticipates issuing the RFQ in March and completing the project this year. It is likely the
consultant contract will exceed the $40,000 threshold and will return to Council for approval.
FINANCIAL IMPACT
The City Council included $150,000 in the 2022 budget for creating the economic development
plan and creating the contacts database. Staff anticipates this will be sufficient funding to
complete the project.
RECOMMENDATION
Information Only. Staff welcomes input from the Committee.
ATTACHMENTS
Economic Development Element from the Comprehensive Plan
https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Mayor's Office/Economic Development Plan/2022-3-7 PCD Info Memo.docx
CHAPTER TWO
ECONOMIC DEVELOPMENT
TUKWILA COMPREHENSIVE PLAN
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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.
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.
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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
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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 SETTING
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 ofTukwila 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.
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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%.
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Tukwila Covered Employment by Sector, 2000-2010
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Government
(Wholesale Trade,
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• Services
Retail
• Manufacturing
(Finance,
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Real Estate)
Construction &
Resources
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 23%
and 2.4%, respectively.
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ECONOMIC DEVELOPMENT
SMALL BUSINESS DEVELOPMENT
CENTER (SBDC)
The SBDC at Highline specializes
in providing business and training
services to entrepreneurs and existing
businesses, in order to be successful in
today's economy. The center provides:
• Knowledgeable, trusted and
confidential one-on-one advice on
all aspects of your business.
• A Iink to 23 other SBDC centers in
the Statewide network for additional
advice.
• Gu
exi
idance on the purchase of an
sting business or a franchise.
• Assistance in finding the best sources
of capital to grow your business.
• A proven pathway to breakout
RETAIL SALES
While Tukwila remains a strong attractor of consumer
spending, the City has experienced a significant reduction
in taxable retail sales, once adjustments are made for
inflation. When adjusted for inflation, taxable retail sales
in 2013 were lower than they were in 2003. The City's sales
tax decline began to occur roughly around the late 1990s.
Competition for retail sales among regional retail centers
has grown stronger over the last ten years.
ISSUES
Current and existing economic trends suggest a variety of
issues and needs for economic development in the City of
Tukwila:
Provide access to the regional highway, transit and air
transnnrtatinn system in a way that cinpc not hanrIirAn
local property development and redevelopment
efforts.
growth for established businesses
ready to take their business to the
next level.
• Benchmarking your company's
performance with others in your
industry to uncover improvement
opportunities.
• Matching you with resources that can
best accelerate the success trajectory
of your business.
• Developing prospect lists through
targeted database searches.
• Information about little-known
training and funding to grow your
business.
• A "can -do" attitude about anything
you need to successfully grow your
business
Explore possible City actions to increase the median
income of Tukwila's residents, including support
for entrepreneurship, small business startups, and
vocational training, particularly among low income or
low English proficiency communities.
Establish coordinated transit hubs throughout the
City including, but not limited to, the Southcenter
area, Tukwila South, Tukwila International Boulevard,
Interurban Avenue South, and the Manufacturing
Industrial Center that efficiently mix modes of travel
and stimulate development of real estate associated
with transportation facilities.
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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.
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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 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.
*71 11 ir
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.
Consider a public-private partnership to examine creating a small business incubator
space in the City.
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2.1.10 ImproveTukwila's image, participation and influence in regional forums, especially those
that influenceTukwila'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.
2.1.1 t. 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.
2.1.1€. 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.
2.1.1E 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.
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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 ofTukwila and Tukwila businesses using innovative
community engagement models.
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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.
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RELATED INFORMATION
Comprehensive Annual Financial Report
King County Countywide Planning Policies (2012)
Economic Development Element Background Memo
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