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2024-05-22 Planning Board Packet1. 2. 3. 4. S. 6. 7. 8. 9. 10. OF EDA' v ti Agenda Edmonds Planning Board REGULAR MEETING BRACKETT ROOM 121 5TH AVE N, CITY HALL- 3RD FLOOR, EDMONDS, WA 98020 MAY 22, 2024, 7:00 PM REMOTE MEETING INFORMATION: Meeting Link: https://edmondswa- gov.zoom.us/s/87322872194?pwd=WFdxTWJIQmxITG9LZkc3 KOhuS014QT09 Meeting ID: 873 2287 2194 Passcode:007978 This is a Hybrid meeting: The meeting can be attended in -person or on-line. The physcial meeting location is at Edmonds City Hall 121 5th Avenue N., 3rd floor Brackett R000m Or Telephone :US: +1 253 215 8782 LAND ACKNOWLEDGEMENT FOR INDIGENOUS PEOPLES We acknowledge the original inhabitants of this place, the Sdohobsh (Snohomish) people and their successors the Tulalip Tribes, who since time immemorial have hunted, fished, gathered, and taken care of these lands. We respect their sovereignty, their right to self-determination, and we honor their sacred spiritual connection with the land and water. CALL TO ORDER APPROVAL OF MINUTES A. Approval of May 8 Minutes ANNOUNCEMENT OF AGENDA AUDIENCE COMMENTS For topics not scheduled for a public hearing. Please limit your comments to 3 minutes ADMINISTRATIVE REPORTS PUBLIC HEARINGS UNFINISHED BUSINESS A. Economic Development Element of the Comprehensive Plan -Joint Discussion with the Economic Development Commission NEW BUSINESS SUBCOMMITTEE REPORT PLANNING BOARD EXTENDED AGENDA A. Extended Agenda Edmonds Planning Board Agenda May 22, 2024 Page 1 11. PLANNING BOARD MEMBER COMMENTS 12. PLANNING BOARD CHAIR COMMENTS 13. ADJOURNMENT 14. GENERIC AGENDA ITEMS Edmonds Planning Board Agenda May 22, 2024 Page 2 2.A Planning Board Agenda Item Meeting Date: 05/22/2024 Approval of May 8 Minutes Staff Lead: Mike Clugston Department: Planning Division Prepared By: Michael Clugston Background/History N/A Staff Recommendation Approve May 8th meeting minutes. Narrative N/A Attachments: PB 05082024_draft Packet Pg. 3 2.A.a CITY OF EDMONDS PLANNING BOARD Minutes of Hybrid Meeting May 8, 2024 Chair Mitchell called the hybrid meeting of the Edmonds Planning Board to order at 7:00 p.m. at Edmonds City Hall and on Zoom. LAND ACKNOWLEDGEMENT FOR INDIGENOUS PEOPLES The Land Acknowledgement was read by Board Member Hankins. Board Members Present Jeremy Mitchell, Chair Judi Gladstone Lee Hankins Richard Kuehn Susanna Martini Nick Maxwell Steven Li (alternate) Board Members Absent Lauren Golembiewski, Vice Chair (excused) READING/APPROVAL OF MINUTES Staff Present Susan McLaughlin, Planning & Development Director Mike Clugston, Acting Planning Manager Navyusha Pentakota, Urban Design Planner MOTION MADE BY BOARD MEMBER GLADSTONE, SECONDED BY BOARD MEMBER MAXWELL, TO APPROVE THE MINUTES OF APRIL 24, 2024 AS AMENDED WITH LANGUAGE IN BOARD MEMBER GLADSTONE'S EMAIL AND AS DISCUSSED. MOTION PASSED UNANIMOUSLY. ANNOUNCEMENT OF AGENDA THERE WAS UNANIMOUS CONSENT TO APPROVE THE AGENDA AS PRESENTED. AUDIENCE COMMENTS Roger Pence encouraged board members to speak up so the audience can hear what they are saying. UNFINISHED BUSINESS A. Comprehensive Plan Housing Element Planning Board Meeting Minutes May 8, 2024 Pagel of 3 Packet Pg. 4 2.A.a Director McLaughlin made the presentation regarding the Housing Element Update as contained in the Planning Board packet including the timeline; policy guidance; and state, county, and city goals related to housing impacting the Comprehensive Plan development. The Equitable Engagement Framework is a tool used to inform strategies to address households with incomes less than $50,000. Citizens Housing Commission recommendations are also integrated. Director McLaughlin reviewed existing 2016 Comprehensive Plan Housing Goals and how those goals would be adapted. Relevant data from the Alliance for Housing Affordability (AHA) related to changes in housing prices and required incomes which wasn't in the packet was also presented. There was some discussion related to the data regarding salaries and household incomes. • Vision 1: Create vibrant and diverse neighborhoods Director McLaughlin highlighted new content, policy statements, and draft vision and goal statements. There was a question about performance metrics related to the previous goals and the lack of action taken towards the Strategic Action Plan. There was discussion about the importance of being accountable to goals and the need to update codes to support implementation. The Board discussed sharing thoughts about this with the City Council. • Vision 2: Ensure fair and accessible housing opportunities for all There was some debate about how to reword Goal 2.3 — Existing racial inequity in housing distribution will be minimized. • Vision 3: Produce and preserve affordable housing There were questions about what was meant by Goal 3.2 — Preserve naturally occurring affordable housing. The group debated how to best preserve affordable housing and if there was even affordable housing to preserve in Edmonds. Does this really mean helping people to stay in their homes? There seemed to be consensus that Goal 3.2 needs reworking. • Vision 4: Remove regulatory barriers to housing affordability There was debate about having a goal to collaborate with adjacent jurisdictions regarding consistency of regulations in order to provide faster permitting. It was recommended to combine goals 4.1 and 4.2 and to consider "explore" versus "implement" for goal 4.4. Using incentives and regulations to achieve the type of housing the City wants to see was discussed. There were comments about the importance of having new housing in areas where the services and infrastructure are available to support it and about how not all new housing types are equal. Stakeholder meetings have been helpful in understanding regulations that are stopping developers from building a diverse variety of housing. There were some comments about creating a goal or policy around development agreements. Upcoming citywide meetings to get community input focused on developing the draft Comp Plan goals are planned for May 28 (Land Use, Housing, Economy) and May 30 (Transportation, Urban Design, Environment). Staff welcomes feedback on the format of these meetings noting that staff availability to attend them is extremely limited. Suggestions from the Board included the post -it note exercise, using emojis, online/Zoom meetings, and an online comment board like they had with the open house. There was some discussion about misinformation about action the City has taken that has been circulating and what can be done to counteract it. Some questions were raised about the existing Housing Element to be answered in the future. Planning Board Meeting Minutes May 8, 2024 Page 2 of 3 Packet Pg. 5 2.A.a NEW BUSINESS None SUBCOMMITTEE REPORT None PLANNING BOARD EXTENDED AGENDA May 22 — Joint meeting with Economic Development Commission (EDC) and a public hearing on Green Building Incentives June 12 — Transportation Element and related Comp Plan items There was a suggestion to add an extra meeting in the November/December timeframe to compensate for the two meetings canceled because of the timing of the holidays. There was a request to get an earlier touch on the CIP/CFP items this year. PLANNING BOARD MEMBER COMMENTS Board Member Hankins thanked everyone for the enjoyable meeting. Board Member Gladstone said she enjoyed the discussion. Board Member Li expressed appreciation for the variety of viewpoints within the group. Board Member Maxwell thanked the new board members for their contributions and said he wanted to make sure they received all the onboarding needed. Planning Manager Clugston will follow up with them. Board Member Martini was impressed with the extended discussion with just one item on the agenda. I W 1I10101 locos IZ4I: /\ I . ala I►/ 104 Chair Mitchell echoed previous comments. He asked about revisions to the ADU/DADU memo which he still needs to review before it goes to Council on May 21. Vice Chair Golembiewski has one more revision to complete. ADJOURNMENT: The meeting was adjourned at 8:57 p.m. Planning Board Meeting Minutes May 8, 2024 Page 3 of 3 Packet Pg. 6 7.A Planning Board Agenda Item Meeting Date: 05/22/2024 Economic Development Element of the Comprehensive Plan - Joint Discussion with the Economic Development Commission Staff Lead: Todd Tatum Department: Planning Division Prepared By: Michael Clugston Background/History Every ten years, cities planning under the Growth Management Act must update their Comprehensive Plans. Several elements of this plan are mandated by RCW. "An economic development element establishing local goals, policies, objectives, and provisions for economic growth and vitality and a high quality of life" is one of those required elements. City staff and members of the Economic Development Commission (EDC) have worked on the draft Economic Development Element (EDE) over several months. City staff have also worked closely with the City's economic development subcontractor Forum Placemaking to bring the element to its current state. The EDC gave a brief update to the Planning Board in a previous joint meeting on March 13; however, the EDE was still in a nascent stage, as was the Housing Element. Planning Board leadership reached out to the EDC leadership and requested another joint meeting in order to have a coordinated conversation on the most recent draft of the EDE and how it fits into the overall scheme of the growth alternatives. Staff Recommendation This is an informational brief and open discussion only. Staff will take the discussion and any recommendations into consideration as they finalize the draft prior to public comment. Narrative Staff and EDC leadership will present a brief slide summary which covers, at a high level: - A brief overview of the previous EDE - The goals of the current draft EDE - Challenges and opportunities we've identified as we've updated this element Given this context, members of the Planning Board and EDC can discuss the goals and policies included in the draft EDE and discuss how they fit into the broader context of the entire Comprehensive Plan. Attachments: Packet Pg. 7 7.A Slide Presentation draft Economic Development Comp Plan Element Packet Pg. 8 nS Draft Economic Development Element May 22, 2024 C L p5 EDMO .� r 1. Where are we coming from? 2. Where are we going? 3. What are we trying to achieve? 4. Challenges and opportunities 7.A.a _______________________________________________________________________________ City of Edmonds Comprehensive Plan Update I Packet Pg. 10 7.A.a a Packet Pg. 11 7.A.a Vehicle -based • Business Districts • Sales leakage and other generalities • Destination -focused Bedroom Community • In 2020 Edmonds -based jobs provided only 20% of Edmonds residents' employment • Higher level of retirees than surrounding communities Passive voice in existing document • Strive, monitor, foster, support ------------------------------------------------------------------------------- City of Edmonds Comprehensive Plan Update I Packet Pg. 12 L a. Cn a Region • Housing affordability and density • Equity lens • Urbanization Economy • Work from home/flexible schedules • Knowledge workers/Seattle Transport • Light rail • Shifting modes ------------------------------------------------------------------------------- City of Edmonds Comprehensive Plan Update I Packet Pg. 13 7.A.a Packet Pg. 14 The International Economic Development Council provides the following general objective regarding economic development: "Improving the economic wellbeing of a community through efforts that entail job creation, job retention, tax base enhancements and quality of life." --————————————————————————————————————————————————————————————————————————————— City of Edmonds Comprehensive Plan Update I Packet Pg. 15 voverning Effectively (Goal Growing the Economy Goal A) Focusing on Quality of life (Goal C) Placemaking ---------------------------------------- City of Edmonds Comprehensive Plan Update I Packet Pg. 16 7.A.a r Q Packet Pg. 17 7.A.a Uoal A: Growing the Economy .y C Finding our niche Life sciences comprise the branches of science that involve the scientific study of life — o • Knowledge workers such as microorganisms, plants, and animals • Health care, life sciences, global including human beings. health Knowledge workers W • Professional, scientific, management, and • Creative sector other services o • Business Services; Finance, insurance, and > real estate Em to ment multi lier Information &Communication Technology o p Y p 0 W The Creative Economy includes arts, tourism, o small-scale artisanal manufacturing, and craft producers, including microbreweries, distilleries, N. Partnerships affordability specialty foods, creative technology and other a p Y sectors. Cn E Q --————————————————————————————————————————————————————————————————————————————— City of Edmonds Comprehensive Plan Update I Packet Pg. 18 Placemaking is: Creating and sustaining places in the built and natura environments that people want to go to, linger, and spend time in with family, friends, and neighbors. *Support businesses as changes induce uncertainty/volatility iTAfIIM;; Packet Pg. 19 N d L a Cn E Q A focus on all residents An active support for community -led organizations Attract business through livability and QOL Limit displacement ,,o\,(%ess and Inclus o., Prosperity Health N • IIII IIIof Life Good Governance Society a)O� Environment SGSt4/n4 eS`\`e�L bi'lity and R ------------------------------------------------------------------------------- City of Edmonds Comprehensive Plan Update I Packet Pg. 20 • Predictable regulatory environment Alignment of capital investments with goals Improvement on our focus on equity Improving connections Improving project financing acumen World Economic Forum's 7 Principles of Good Governance 1. Political consensus and unity 2. Metropolitan management 3. Fiscal capacity 4. Instruments to optimize land and infrastructure 5. Vision and appetite for the future 6. Commercial readiness and agility 7. Brand and story --————————————————————————————————————————————————————————————————————————————— City of Edmonds Comprehensive Plan Update I Packet Pg. 21 d d L Q E 0 U a� t 0 E W E 0 0 E 0 0 W 0 N d L a d Cn r c d E r Q 7.A.a r Q Packet Pg. 22 Differing opportunities than rest of county Longterm infrastructure needs Missing directional consensus Changes needed in the way we communicate and collaborate Requires a shift in historic focus of economic development How to deal with displacement risk in a real way We have broken or non-existent linkages to wider county/state/federal resources Fiscal capacity ------------------------------------------------------------------------------- City of Edmonds Comprehensive Plan Update I Packet Pg. 23 We can take advantage of changing commercial space needs We are a strong brand We can be a leader in south SnoCo We can lean in to affordable housing We can shift what we measure and track QOL focus is non -partisan We can refocus communication and outreach around people rather than programs ------------------------------------------------------------------------------- City of Edmonds Comprehensive Plan Update I Packet Pg. 24 nS Discussion httpso.//edmonds2044.infocommunity.org Email us @ everyonesedmonds@edmondswa.gov For more updates, visit edmondswa.gov/everyonesedmonds 7.A.b Everyone's Edmonds - Comprehensive Plan Update Economic Development Goals & Policies Date May 16, 2024 1 DRAFT Key: From existing Land Use element document (with edits in track change mode) New Content- This element is completely new, so we are not marking it green. New content related to Compliance/Commerce Guidance (Suggestions from Citizen Housing Commission) (Suggestions from CAP or Equity/Climate Gap Analysis) PE Comments/Suggestions/Notes Context Definition of Economic Development The International Economic Development Council provides the following general objective regarding economic development. "Improving the economic wellbeing of a community through efforts that entail job creation, job retention, tax base enhancements and quality of life." The City of Edmonds supports this definition, because it acknowledges the breadth of factors that contribute to economic development, including some things that are not traditionally seen as part of economic development, such as quality of life. Key Employment Sectors Based on a review of local and regional employment data, the City of Edmonds either already excels in or has the capacity to excel in the following employment categories. referred henceforth as "Key Employment Sectors." A variety of terms are used to describe various employment sectors. Most of the names of the key employment sectors below are from the American Community Survey (ACS, a part of the US Census). The sector names in bold italics below are from the PSRC Regional Economic Development Strategy (2021); these sectors have been identified as significant drivers of the regional economy. An underlying assumption of the employment sectors is that flexible work schedules and quality of life of the employees will remain a key consideration in luring business to Edmonds. 5/13/2024 Draft Economic Development (Goals and Policies) Element 1 Packet Pg. 26 7.A.b • Health care, Life Sciences, and Global Health • Knowledge workers o Professional, scientific, management, and other services o Business Services; Finance, insurance, and real estate o Information & Communication Technology • The Creative Economy, which includes arts, tourism, small-scale artisanal manufacturing, and craft producers, including microbreweries, distilleries, specialty foods, creative technology, and other sectors. The Creative Economy is characterized by a significant number of non-traditional workers who operate sole -proprietorships, sole -owner LLCs and who are small business owners, independent contractors, and freelancers. • Retail/Commercial Employed Edmonds Residents by Industry Figure 1 shows the number of Edmonds residents who are employed in various industries. Consistent with the Key Employment Sectors section above, health care, knowledge work including professional services and finance, retail, and arts and recreation are among the industries in which the most residents are employed. Figure 1. Employed Edmonds Residents by Industry, 2020 Industry Category Employed Edmonds' Residents Health care and education 4,672 Professional, scientific, management, and other services 3,604 Retail trade 2,647 Finance, insurance, and real estate 1,913 Manufacturing 1,886 Construction 1,860 Arts, recreation, accommodation and food services 1,830 Other services 991 Transportation and warehousing, and utilities 843 Public administration 653 Information 487 Wholesale trade 429 Agriculture, forestry, and mining 94 Tota 1 21,909 Source: American Community Survey (ACS), 2020, via PSRC. For the civilian employed population 16 years and older. https.11www.psrc.orglour-work/census-and-american-community-survey 2 Packet Pg. 27 7.A.b Figure 2 compares Edmonds to Bothell and Woodinville on their share of employed residents for various industries. • Key Regional Export Industries are PSRC's terms for the industry categories described in the ACS/U.S. Census; For example, PSRC focuses on "life sciences" while the Census tracks jobs in the "health care and education" industries. Many of these industries, are important both regionally and locally in Edmonds —including health care/life sciences, knowledge work/business services, arts and recreation/tourism, and information. However, other industries are key drivers of the regional economy, but are probably less critical to the City of Edmonds. These industries include aerospace, maritime, and military and defense. It is possible that Edmonds could excel in these industries, but neither anecdotal evidence nor government data seem to suggest that Edmonds currently excels in them. • The columns on the right compare the share of employed Edmonds residents in each industry to the share of employed residents in Bothell and Woodinville, and Snohomish County, respectively. Bothell and Woodinville were selected because of their somewhat similar locations in the region, and size. • Edmonds' economy is similar and different to nearby cities and the County. Edmonds has more employed residents than the comparison cities in healthcare, construction, finance, and arts/recreation. It has fewer employed residents in the professional services, information, and manufacturing industries. Compared to the County, Edmonds has a significantly larger share of employed residents working in health care, arts/recreation, and professional services; it has far few employed residents in manufacturing. Figure 2. Key Export Industries and Comparison of Edmonds to Nearby Cities Industry Category (ACS/U.S. Census) Key Regional Export Industries (Clusters) (PSRC) Edmonds vs Bothell & Woodinville Edmonds vs Snohomish County Health care and education Life Sciences & Global Health 2.9% 1.3% Construction 2.2% -0.2% Finance, insurance, and real estate Business Services 1.9% 3.0% Arts, recreation, accommodation and food services Tourism 1.6% 0.3% Professional, scientific, management, & other services Business Services; Aerospace; Clean Technology -5.0% 3.6% Retail trade 0.7% 0.2% Transportation and warehousing, and utilities Transportation & Logistics 0.8% -0.4% Other services 0.1% -0.1% Public administration 0.0% -1.0% Agriculture, forestry, and mining -0.1% -0.3% Wholesale trade -0.5% -0.1% Information Information & Communication Technology -1.8% -0.1% Manufacturing Aerospace; Maritime, Military & Defense; Clean Technology -2.8% -6.3% Note: Figure shows the number of employed Edmonds residents. Source: American Community Survey (ACS), 2020, via PSRC. For the civilian employed population 16 years and older. https://www. psrc.org/our-work/census-and-american-community-survey 3 Packet Pg. 28 7.A.b Where Edmonds Residents Work Understanding where Edmonds residents work is a critical piece of the City's economy. During and following 2020, the COVID-19 pandemic and other factors led to significant changes in work locations across the country. Thus, U.S. Census' LEHD program 2019 data was selected to represent pre -pandemic employment locations for this study. Figure 3 shows that, in 2019, the vast majority (92%) of employed Edmonds residents commuted to work elsewhere, and that only 8% of employed Edmonds residents both lived and worked in Edmonds. Therefore, Edmonds can accurately be called a "bedroom community." Workers and their families are making a choice to live in Edmonds, even though their jobs are located elsewhere. Figure 3. Where Edmonds Residents Work, 2019 G Live in Edmonds, Work Elsewhere 18,847 92% of employed residents. Live and Wor In Edmonds 1,608 8% of employed residents. Source: Longitudinal Employer -Household Dynamics (LEND) program, U.S. Census Bureau, 2019. Note that the data source for Figure 3 (LEHD) is different than the data source for Figure 1 (ACS). While the two data sources identify similar overall employment dynamics, specific figures are different between the two sources. There are about 55% more employed residents who commute elsewhere than there are employees who commute into Edmonds. These employed residents are critical to the City's economic health and contribute heavily to municipal revenue streams such as property and sales taxes. The comprehensive plan should focus on improving quality of life for these employed residents, not just oriented towards attracting employers to Edmonds. Figure 4 shows the direction and distance that employed Edmonds residents commuted in 2019. While about 40% of employed residents remain "close to home" and commute less than 10 miles, an even larger share (47.6%) of employed residents commute between 10 and 24 miles. A very large share of these commuters have been commuting south, to central parts of the City of Seattle, including Downtown and the University District. 4 Packet Pg. 29 7.A.b Figure 4. Commute Direction and Distance for Employed Edmonds Residents, 2019 M N S E ■ Less than 10 miles ■ 10 to 24 miles 25 to 50 miles Source: Longitudinal Employer -Household Dynamics (LEHD) program, U.S. Census Bureau, 2019. Work From Home / Remote Work Prior to the COVID pandemic, a relatively small share of the workforce nationwide worked from home (about 5%). During and following the pandemic, this share increased dramatically, as more workers found they could do their jobs from home and other locations, aided by new technologies such as remote video conferencing. We expect remote work to be a critical employment trend throughout the duration of the Edmonds comprehensive plan. In 2022, data from the American Community Survey (ACS) / U.S. Census Bureau indicate that 25.3% of workers in the Edmonds area were working from home or working remotely. This suggests that approximately 4,500 Edmonds residents are working from home or working remotely (e.g., from coffee shops, co -working spaces, etc.) Edmonds' 25% work from home share is similar to other nearby areas, and lower than Bothell and Mill Creek (33%), Shoreline (30%), and Redmond (38%). One source notes that, "[ACS] data shows remote work is stable over the last year [2021 to 20221, and if anything, has increased slightly. There is no sign that return -to -office is gaining steam on a national scale." This means that ensuring that Edmonds is a functional and desirable place to work remotely is key to Edmonds ongoing economic success. Apart from any specific industry sector, accommodating work from home employees is its own key employment sector. The Adjacent Possible Recent academic research into economic development has shown that economies tend to grow into the "adjacent possible," rather than by taking giant leaps into "distant" economic sectors. (Source: MIT, Bloomberg.) 5 Packet Pg. 30 7.A.b Put in more concrete terms, this means that local economies grow by building from the things they are already good at into industries that are adjacent to their existing business and employment base. For example, the Puget Sound's strong software industry grew into online shopping in the early 2000s. Its strength as a location where gourmet coffee has been brewed and enjoyed for decades enabled the region to produce traded sector companies that serve coffee worldwide. It's aeronautics and aerospace industry has spawned many other complex manufacturing companies in Snohomish County. However, the region is not a notable hub (at a nationally notable scale) for movie production (LA) or oil and gas production (Houston). Both at a regional and City of Edmonds scale, it does not make sense to try to pursue these non -adjacent industries. The City should incrementally seek to grow into adjacent possible industries. For example, while its Life Sciences employment base is small compared to other Puget Sound cities, Edmonds has strong health care and professional service sectors, and quality of life. It is possible that it can use these to attract additional Life Science businesses and employees. The Key Employment Sectors reflect this approach of pursuing the adjacent possible. Activity Centers, Neighborhood Centers, and Hubs The 2024 Comprehensive Plan Update envisions a hierarchy of centers and hubs, with two major activity centers (Downtown/Waterfront, and Highway 99), multiple Neighborhood Centers (e.g., Westgate, Five Corners), and multiple smaller Hubs (e.g., North Bowl and Perrinville). These centers and hubs are described in more detail in the Land Use Element of the Comprehensive Plan. The City envisions that all centers and hubs will include a mix of land uses that are physically integrated, and ideally would include places to live, work, shop, and play in close proximity to each other. This is a significant difference in approach from the previous Comprehensive Plan, which emphasized the importance of "business districts." This shift is intentional and seeks to focus the City's attention on people and integrated, mixed -use places, rather than single -use business districts, or industrial or office parks. Neighborhoods of Opportunity Numerous studies completed in recent decades have shown that the neighborhoods that children grow up in have a significant impact on their lives, including the education they receive, the jobs they hold, their future income, and other outcomes. Raj Chetty, Professor of Economics at Harvard University and Director of Opportunity Insights has led the detailed analysis of this phenomenon. Residents' levels of education is one of the best predictors of incomes and thriving economies. The fact that where people live affect their opportunities in life means that Edmonds has an opportunity to provide its residents with great opportunities through the thoughtful implementation of this plan. Some of the findings of the Opportunity Insights lab include: • The neighborhoods in which children grow up shape children's outcomes in adulthood. • Education quality - even as early as Pre -Kindergarten - has large effects on kid's lives • Currently, low-income families are segregated into lower -opportunity areas. • A booming economy does not necessarily lead to increased upward mobility for local children. 6 Packet Pg. 31 7.A.b • Place -focused approaches to improving economic mobility —such as making investments to improve outcomes in areas that currently have low levels of mobility or helping families move to higher opportunity areas —are important. Support for policies that integrate households of various incomes to reduce segregation and concentrated poverty, such as building affordable and middle -income housing, changes in zoning laws, and efforts to improve local public schools. Placemaking and Destination Development' Placemaking can be defined as creating and sustaining places in the built and natural environments that people want to go to, linger, and spend time in with family, friends, and neighbors. Examples of great places can be small or large, and include Downtown Edmonds, many places on the Puget Sound waterfront, and small neighborhood cafes or pocket parks where neighbors meet and connect. Figure 5 shows a street scene in Downtown Edmonds and illustrates one reason that placemaking is relevant to economic development: When people enjoy going to places and spending time in them because the buildings and public spaces there are well designed, they often spend money there, and enable the businesses and organizations located there to be more successful. Many high -quality places are also places with correspondingly high measures of business strength, such as commercial rents and property values. Figure 5. Downtown Edmonds Source: City of Edmonds. Placemaking and destination development have been studied by numerous organizations, including: • The Urban Land Institute: Creative Placemaking, Sparking Development with Arts and Culture, 2020, https://knowledge.uIi.org/-/media/files/research-reports/2020/creative-Placemaking-v2.pdf. • The Brookings Institution: Why we need to invest in transformative placemaking, 2018, https://www.brookings.edu/articles/why-we-need-to-invest-in-transformative-placemaking/ • The Project for Public Spaces, https://www.pps.org/article/what-is-placemaking Packet Pg. 32 7.A.b While placemaking is desirable for local businesses and business districts, it is also an important part of modern economic development citywide. This is because: • Highly educated "knowledge workers" in Edmonds' Key Employment Sectors drive a significant share of economic growth, An increase in knowledge workers brings up to three times more corollaryjobs than the manufacturing sector most often in the service sector. Knowledge workers are increasingly mobile and can choose where to live. This has been true since the mid-20th century and is even more the case now in the post-COVID world, where working on a hybrid or remote basis has become more common. • By investing in placemaking, cities such as Edmonds can increase the likelihood that residents, employees, and businesses want to live in Edmonds, which should drive job creation and public sector revenues such as property values and retail sales. Destination development is a term highly related to placemaking but is focused on visitation. Destination development can be defined as: The strategic planning and advancement of defined areas to support the evolution of desirable destinations for visitors, by providing compelling experiences, quality infrastructure, and remarkable services to entice visitation. Public Revenues As per the definition of economic development, tax base enhancements are a key component of this work. A resilient and differentiated tax base is essential to creating the conditions for the remainder of the components of economic development. The two figures below show the 2024 revenues for the City of Edmonds for all funds (Error! Reference source not found.) and the General Fund (Error! Reference source not found.). 2024 revenues for the City of Edmonds for all funds • Property, retail sales and use taxes make up nearly 36% of all of City's revenues for all funds. These taxes are directly related to economic development outcomes, such as demand for residential and commercial property in Edmonds, and the amount of retail sales and business enterprises that take place in Edmonds. • Charges for services generate more than 41% of total City revenue. Charges for services are primarily related to the provision of utilities, including water, wastewater/sewer, stormwater, telephone, cellular, gas, electric, cable garbage. Demand for utilities is also related to economic development, since residents and businesses generate demand for utilities. • Thus, a thriving economy with prosperous households and businesses, and some growth in population and jobs, drives at least 77% of the City's revenues. Some intergovernmental transfers are also related to population and job growth, growth management, and other economic development related issues. a Packet Pg. 33 7.A.b Figure 6. Percentage Revenue by Type —All Funds, 2024 Trancfarc-In AFS/Capital Contributions, Miscel Fines and Penalties_ 0.76% enses and Permits, 1.80% !ntal, 11.00% Sources: 2024 Adopted Budget, City of Edmonds; page 27. Edmonds Taxes and Incentives, City of Edmonds. 2024 revenues for the City of Edmonds for General funds • The General Fund is used for most ordinary government operations, such as staffing for parks and recreation, public works, facilities maintenance, and administrative offices. • Other funds, such as Enterprise Funds, pay for specific City projects such as those related to sewer and water utilities and capital projects. • Property and retail sales and use taxes —provide 58% of the revenues for the general fund. Therefore, creating policies to increase the amount of goods sold and the total value of property in the City is critically important to providing quality public services. Figure 7. Percentage Revenue by Type - General Fund, 2024 I ntergovernmenta 1,1 2.36% \ Licenses & Permits, 3.90% Excise Taxes, 0.64% Business and Occupation Taxes, 15.17% , Fines and Penalties, 1.77 avices, Miscellaneous, 1.98% Sources: 2024 Adopted Budget, City of Edmonds; page 30. Edmonds Taxes and Incentives, City of Edmonds. 9 Packet Pg. 34 7.A.b Vision, Goals, and Policies The Edmonds Economic Development Vision Edmonds Economic Development vision or "mantra" can be visualized as the place where the City's four economic development goals overlap, as shown below. Between 2024 and 2044, Edmonds hopes to: Growing the Economy JGoal A) Governing Placemaking Effectively Goal B) (Goal D) Focusing on Quality of life (Goal C) *An integrated place -based strategy for economic resiliency. Goal A. Diversify and grow the City's jobs and economy to build robust and differentiated key employment sectors, enhance local employment opportunities, strengthen the city's unique identities, attract spending from nearby communities, and increase municipal tax revenues to support local services. Policy 1. Grow employment within Edmonds' key employment sectors by enabling existing employers in these sectors to thrive, and actively attracting employers and jobs in these sectors. Identify and prioritize areas with blighted commercial areas for investment. Develop or maintain business recruitment programs, including a tool kit of incentives, to encourage business growth. Policy 2. Be an exceptional place for employees to work remotely —from home, community spaces, or other "third places." Explore features that could enhance Edmonds' desirability for remote workers, including high quality of life, reliable internet connectivity, and transportation infrastructure. 10 1 Packet Pg. 35 7.A.b Policy 3. Market Edmonds as a year-round destination to visitors from within and beyond the Puget Sound region, for its waterfront location, historic downtown, arts and culture, eating and drinking establishments, international shopping and dining, natural amenities, gardens and flower displays, parks and recreational assets, etc. Policy 4. Actively partner with local and regional economic development organizations such as the Edmonds Chamber of Commerce, Port of Edmonds, Snohomish County, PSRC's Central Puget Sound Economic Development District Board, and the Department of Commerce to grow the City's economy, particularly in low opportunity areas. Continue to solicit and address feedback to enhance the business environment. Policy 5. Acknowledge that producing adequate affordable and workforce housing requires an active role from city government. While community -based organizations and housing developers are the primary movers of this work, the city should allocate staff time to partnership, grant writing, planning, policymaking, and advocating in this space. o Facilitate a variety of home ownership opportunities by allowing and supporting condos, community cooperatives, associations, and equity building Policy 6. Improve access to commercial parcels negatively impacted by state highway infrastructure. Promote access and walkability to, and within, commercial areas in areas less effectively served by pedestrian enhancements. Goal B. Revitalize and enhance the city's activity centers, neighborhood centers hubs through integrated, mixed -use placemaking and destination development approaches, in recognition of the needs for housing, commerce and economic development. Policy 1. Commit to, and invest in, an active and continuous engagement with the entire community, with particular emphasis on neighborhoods. Policy 2. Create destination management plans for the City's business districts and engage in holistic planning, implementation, and reporting of their progress. Branding and destination marketing are key elements of destination management. Policy 3. Prioritize revitalization and enhancements to communities with a low opportunity index. Actively target infrastructure improvements to provide equitable access to public facilities and services. Plan, track, and create realistic financing strategies to improve place. Policy 4. Acknowledge that this work is regional and requires a steady investment in time, energy, and focus over years to address imbalances in public investment. It requires work at every level of our government. Policy 5. Address business displacement through supporting businesses — directly or through conveners - with grants, technical assistance, capacity -building expertise, marketing, and branding. o Develop relocation options in Edmonds for those displaced from mobile home parks and engage with communities to make those resources known o Minimize housing displacement created from development — identify properties at risk of commercial and housing displacement in commercial areas 11 1 Packet Pg. 36 7.A.b o Provide additional support for safety, community space, and walkability improvements through securing grants and other financial support Goal C. Support and enhance the community's quality of life for residents of all backgrounds and incomes, workers, and visitors to sustain and attract business and investment and enhance economic well-being. Policy 1. Establish a shared metric for quality of life that incorporates the following measures as a starting point, possibly with the addition of other elements to be determined: o Connection o Mobility o Sociability o Stability — particularly with respect to housing stability o Health o Safety Policy 2. Promote strategies and policies that expand access to opportunity and remove barriers for all Edmonds residents have the opportunity to thrive —regardless of age, race, gender, and other factors o Continue to foster an open and accepting community culture that respects diversity, in part because progressive communities are better able to attract and retain business. o Identify sources of risk where displacement risk is high e Develop programs which mitigate and manage displacement risk. o Identify meaningful investments in areas with lower economic opportunity. o Develop incentives to manage and preserve affordable commercial spaces within mixed -use areas aimed at supporting small local businesses. Policy 3. Recognize the role of community -led organizations as catalysts for local empowerment, advocacy, and collaboration and support them to strengthen their capacity and enhance their effectiveness in serving the community o Facilitate access to resources, information, and networks. o Assist in applications for grants, subsidies, or if feasible, provide direct funding opportunities o Simplify administrative processes and requirements for CBOs seeking permits, licenses, or approvals to carry out their activities o Foster collaborative partnerships between city agencies and CBOs to address community needs and achieve shared goals Policy 4. Support green job growth: Invest in skilled workers, green workforce development training, and new low carbon technologies like clean energy and renewable materials Policy 5. Recognize that investments which provide attractive and integrated public facilities, civic spaces, and mixed -use development for the City's growing population to Packet Pg. 37 7.A.b gather, connect, and build community increases our competitiveness in the regional economy as well as improving quality of life for residents Policy 6. Support, recognize, and empower businesses with cultural significance to the community. Packet Pg. 38 7.A.b Ensure a predictable and efficient regulatory environment that facilitates economic development, via the City's zoning, permitting, business support, and investments. Policy 1. Continually strive to offer an efficient, timely and predictable regulatory environment, and a high level of customer service to those seeking permits from the City. Establish performance metrics and track them, acknowledging that learning and improving is the primary goal of this work. Policy 2. Ensure that the following City's investments and programs are aligned with the economic development goals o Capital Improvement Program o Impact fees structures, which can vary based on the degree to which a project supports comprehensive plan goals. For example, projects that create more walk trips and fewer auto trips may pay lower impact fees. o Taxes, including overall tax burden. o Programs, grants, loans, and other incentives, particularly those which support anti - displacement strategies and support for existing entrepreneurs, such as relocation assistance. Policy 3. Become experts in all aspects of municipal project financing. Investigate Tax Increment Financing, Local Improvement Districts, Congressionally Directed Spending, state and federal grants, area -specific impact fees and other methods to improve infrastructure in targeted areas of the city. Policy 4. Ensure that equity is central to the decision -making process of city government, with a commitment to fairness, inclusion, and justice for all residents Policy 5. Be a connector for our small businesses to programs which offer business support, financial or managerial assistance, and technical training 14 Packet Pg. 39 7.A.b Summary Table Goals A. Diversify and grow the City's jobs and economy to build robust and differentiated employment sectors, enhance local employment opportunities, strengthen the city's unique identities, attract spending from nearby communities, and increase municipal tax revenues to support local services. B. B. Revitalize and enhance the city's activity centers, neighborhood centers hubs through integrated, mixed -use placemaking and destination development approaches, in recognition of the needs for housing, commerce and economic development. C. Support and enhance the community's quality of life for residents of all backgrounds and incomes, workers, and visitors in order to sustain and attract business and investment and enhance economic well-being. Policies Grow employment within Edmonds' key employment sectors Be an exceptional place for employees to work remotely Market Edmonds as a year-round destination Actively partner with local and regional economic development organizations Acknowledge that producing adequate affordable and workforce housing requires an active role from city government. Improve access to commercial parcels negatively impacted by state highway infrastructure. Commit to, and invest in, an active and continuous engagement with the entire community Create destination management plans Prioritize revitalization and enhancements to communities with a low opportunity index. Acknowledge that this work is regional and requires a steady investment in time, energy, and focus over years Address business displacement through supporting businesses Establish a shared metric for quality of life Potential Metrics and Data Sources. DRAFT Number of jobs in the City's Key Employment Sectors: PSRC/ACS, LEHD. Prepare a 5- year strategic plan. Number of residents who work from home: ACS. Number of downtown visitors during each quarter: Placer.ai. Periodic staff and EDC reports. Number of housing units permitted in City by year (all housing, middle housing, regulated affordable housing): City permits. Staff and EDC reports Number of plans adopted by the EDC or City Council. Include opportunity index metric in City's Capital Improvement Program & Capital Facilities Plan, and other related processes. Consider Washington Environmental Health Disparities Map metric. Annual progress reports. Track the number of locally owned business in the City's business districts and hubs. Review and consider adopting the following metrics/frameworks: Blue Zones, Washington Environmental Health Disparities Map (WEHD), Walk Score. Work to ensure that all Edmonds residents have the opportunity to thrive —regardless Percent of Edmonds residents who live in a location with a high/positive measure on of age, race, gender, or other factors. Help build strong community -led organizations and foster resilient resident engagement. Align economic development efforts with the City's other values Be a leader within the South County area on improving access to transit. Blue Zones, WEHD Map, and Walk Score. Number of community -led organizations in the City's business districts, hubs, and neighborhoods, total membership in these organizations. Ongoing staff and EDC work. Number of residents within % mile of a transit stop; Total transit boardings on Community Transit, Sound Transit, and Washington State Ferries. 5/13/2024 Draft Economic Development (Goals and Policies) Element 15 Packet Pg. 40 7.A.b Recognize that investments which provide attractive public facilities and civic spaces for the City's growing population to gather, connect, and build community increases our competitiveness in the regional economy as well as improving quality of life for residents Include opportunity index metric in City's Capital Improvement Program & Capital Facilities Plan, and other related processes. Consider Washington Environmental Health Disparities Map metric. Recognize businesses with cultural significance to the community Establish a list of businesses that are locally owned, have been operating in the City for 20 years or more, are owned by persons of color, or are otherwise culturally significant. D. Ensure a predictable and efficient regulatory Continual) strive to offer an efficient time) and predictable regulatory environment. Track number of days required to issue building permits and other permits. Y Y p g Y Y q gp environment that facilitates economic - development, via the City's zoning, permitting, Ensure that the City's investments are aligned with our economic development goals Compare City investments to four economic development goals and vision. business support, and investments. Become experts in all aspects of municipal project financing. Clearly incorporate equity into decision -making. Be a connector for our small businesses to programs which offer business support, financial or managerial assistance, and technical training. Develop a framework to assess CIPs and ordinances for consistency with policies Prepare report on best practices in municipal infrastructure financing. Attend AWC, Washington City/County Management Association (WCMA), or other relevant conferences. Include opportunity index metric in City's Capital Improvement Program & Capital Facilities Plan, and other related processes. Consider Washington Environmental Health Disparities Map metric. Review and consider adopting the following metrics/frameworks: Blue Zones, Washington Environmental Health Disparities Map (WEHD), Walk Score. Establish a Small Business Resources web page, with contact information and links to resources from the SBA, the State's Small Business Liaison Team (SBLT) and Department of Commerce, local Community Development Financial Institutions (CDFIs), and other resources. See above. Packet Pg. 41 10.A Planning Board Agenda Item Meeting Date: 05/22/2024 Extended Agenda Staff Lead: Michael Clugston Department: Planning Division Prepared By: Michael Clugston Background/History N/A Staff Recommendation Discuss the attached extended agenda. Narrative N/A Attachments: May 22 Extended Agenda Packet Pg. 42 10.A.a Planning Board Extended Agenda - May 22, 2024 O ci —�i 6 rl t N LL V ci LL oo N C G ko G M ci G r� N Q O ci Q V N C L oo T G N N N ci —3i 6 N -3i O ci V N Q V ci Q cb N 'n N ci fn u1 N O (n O ro N > O Z A ci > O Z r� N u Ul 0 c-1 ci U 01 LA N Comprehensive Plan High Level Alternatives D/R D/R Joint Discussion w/EDC D/R D/R Final Review Draft Alternatives D/R Housing Policy Discussion D/R Environmental Analysis preliminary findings +Transportation D/R All Comp Plan Elements, Utility Analysis D/R Preferred Plan, FEIS D/R Code Updates Critical Aquifer Recharge D/R CAO Update (RCW 36.70A.130 - end 2024) 1 D/R Tree Code Update D/R Detached Accessory Dwelling Units (HB 1337 - mid 2025) D/R D/R PH D/R D/R Green Building Incentives I D/R D/R PH Climate Legislative Package I PH Land use permit timelines (SB 5290 - end 2024) 1 PH Middle Housing (HB 1110 - mid 2025) 1 Design standards and processes (HB 1293 - mid 2025), including multfamily design standards 1 Long Range Capital Improvement Program/Capital Facilties Plan I PH Tree Canopy Policy I D/R Highway 99 Landmark Site Administrative Election of Officers Planning & Development 2024 Work Plan B Annual Retreat I Planning Board report to City Council D/R B Parks, Recreation & Human Services Report B B KEY I -Introduction & Discussion PH- Public Hearing D/R- Discussion/Recommendation B- Briefing/Q&A R- Report with no briefing/presentation Regular meeting cancelled Future Items Neighborhood Center Plans Code Modernization Projects: 1. Unified Development Code (late 2025) Comp Plan Implementation Highway 99 Community Renewal Program Packet Pg. 43