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2015-01-28 Planning Board PacketMEETING AGENDA PLANNING BOARD Council Chambers, Public Safety Complex 250 5th Avenue North January 28, 2015 7:00 PM 1. Call to Order and Roll Call 2. Reading / Approval of Minutes: January 14, 2015 3. Announcement of Agenda 4. Audience Comments: (3 Minute Limit Per Person)* *Regarding matters not listed on the Agenda as Closed Record Review or as Public Hearings 5. Development Services Director Report to Planning Board 6. Public Hearings: (Public participation is welcome) 7. Unfinished Business: (No public participation) 8. New Business: (No public participation) a. Discussion on Economic Development Element Update 9. Administrative Reports: Review Extended Agenda 10. Planning Board Chair Comments: 11. Planning Board Member Comments: 12. Adjournment PARKING AND MEETING ROOMS ARE ACCESSIBLE FOR PERSONS WITH DISABILITIES (Contact the City Clerk at 771-0245 with 24 hours advance notice for special accommodations) AI-7442 Planning Board Agenda Meeting Date: 01/28/2015 Reading / Approval of Minutes: January 14, 2015 Department: Initiated By: Planning Information Subject/Purpose Reading / Approval of Minutes: January 14, 2015 Staff Recommendation It is recommended that the Planning Board review and approve the draft minutes. Previous Board Action N/A Narrative The draft minutes are attached. Attachments Attachment 1: Draft PB Minutes of 1.14.15 2. CITY OF EDMONDS PLANNING BOARD MINUTES January 14, 2015 Chair Tibbott called the meeting of the Edmonds Planning Board to order at 7:00 p.m. in the Council Chambers, Public Safety Complex, 250 — 5`h Avenue North. BOARD MEMBERS PRESENT Neil Tibbott, Chair Philip Lovell, Vice Chair Bill Ellis Daniel Robles Valerie Stewart Mike Nelson Evan Zhao, Student Representative BOARD MEMBERS ABSENT Todd Cloutier Careen Rubenkonig READING/APPROVAL OF MINUTES STAFF PRESENT Rob Chave, Planning Division Manager Carrie Hite, Parks, Recreation and Cultural Services Director VICE CHAIR LOVELL MOVED THAT THE MINUTES OF DECEMBER 10, 2014 BE APPROVED AS AMENDED. BOARD MEMBER NELSON SECONDED THE MOTION, WHICH CARRIED UNANIMOUSLY. ANNOUNCEMENT OF AGENDA The agenda was accepted as presented. AUDIENCE COMMENTS No one in the audience indicated a desire to address the Board during this portion of the meeting. DEVELOPMENT SERVICES DIERCTOR REPORT TO PLANNING BOARD Chair Tibbott referred to the written report provided by the development Services Director. Vice Chair Lovell requested more information about the Comprehensive Plan Open House that is scheduled for February 25, 2015 from 5:00 to 7:00 p.m., preceding the Board's regular meeting. Mr. Chave explained that, rather than a public hearing, the meeting would be an open house to provide information regarding the Comprehensive Plan update. People in attendance can learn about the process, provide feedback, and sign up to receive additional information as the process moves forward. Board Member Stewart asked if the Comprehensive Plan page on the City's website is strictly informational or interactive. Mr. Chave answered that it allows an opportunity for the public to provide feedback. He noted that the City now has a Facebook Page where people can provide comments, as well. Board Member Stewart complimented staff on the Building Division Report, which is very informative and shows the progress made throughout the year. At the request of Board Member Stewart, Mr. Chave provided clarification of the Chart on Page 1 regarding the actual number of additional residential units. He explained that alteration and/or addition projects did not increase the number of units available in the City. However, new units were added as part of new construction. In particular, he noted that the chart provides an estimate of the number of new units associated with the mixed use project. Board Member Robles requested more information about how the total dollar valuation is calculated. In particular, he asked why the valuation number for the 2,329 mechanical/plumbing permits was zero. He noted that if $74 million is being used as a reference or datum, then how the number is calculated should be transparent. Mr. Chave explained that fees for mechanical and plumbing permits are based on the number of fixtures and are not usually valuation driven. Typically, mechanical and plumbing permits are done along with overall permits for new commercial and/or multi -family development. If fees for plumbing and mechanical permits were based on the total valuation, as well, the City would actually be double counting. Board Member Nelson asked if the City has plans to notify the public that they can now watch the Planning Board Meetings on television or on line. Mr. Chave said he anticipates an announcement will be made to the public. Chair Tibbott referenced the Social Media Policy, which was attached to the Director's Report. Mr. Chave said the City Attorney has advised that members of the City Council, Boards and Commissions should visit the site to be informed, but they should avoid direct interaction. He emphasized that the Facebook Page is not intended to duplicate the City's website. It is intended to provide another avenue for information that is friendlier and less formal, and the more formal information will remain on the City's website. The Board can feed information they want posted on the site, but it must be City related. He further advised that the Facebook Page is moderated by several City departments. The Board agreed it would be helpful to have a more in-depth discussion regarding the policy at a future date. It was noted that suggestions for potential changes to the Social Media Policy would need to be presented to the City Council for consideration. DISCUSSION/RECOMMENDATION FOR GENERAL AND LAND USE ELEMENTS OF 2015 COMPREHENSIVE PLAN UPDATE Mr. Chave advised that an open house is scheduled for February 25t'. At that time, staff will provide information about the overall process for updating the Comprehensive Plan and what its purpose is. A lot of information will be available at that time, and he anticipates that transportation will figure prominently in the discussion because it is one of the more important updates. Chair Tibbott asked if the Board will have completed its discussion on all of the elements of the Comprehensive Plan before the open house. Mr. Chave answered that most of the important elements will have been covered by then. However, the Board may not see the Transportation Element prior to the open house. This element is still a work in progress, but it is hoped it is far enough along by the open house to provide background information to the public. Chair Tibbott noted that after the open house, the various elements will come back to the Board for public hearings. He asked if the Board would have one public hearing on all of the elements or if they would hold separate hearings on each element. Mr. Chave said that would be up to the Board to decide. He said it is anticipated the Board will forward a recommendation to the City Council sometime in the Spring, with a target date for adoption by the end of June. He reminded the Board that their review is running in tandem with the Council's review of the various elements. Board Member Stewart pointed out that, as per the extended agenda, the Board's first public hearing on the Comprehensive Plan update is scheduled for June 1 Oth. It appears that the City Council will conduct a public hearing on each of the elements prior to the Board's hearing. Mr. Chave said the Development Services Director did not anticipate the City Council would want to have hearings during the initial stage, but the City Council decided to hold a public hearing before discussing each element. He said it would be good if the Planning Board could complete their public hearing process and forward a recommendation to the City Council before the tentative June 10`h date. Planning Board Minutes January 14, 2015 Page 2 Vice Chair Lovell referred to the I" sentence in the 2nd paragraph on Page 12 of the General Background Section (Attachment 1) and questioned if it is appropriate to include a reference to the "economy recovering from the recession. He reminded the Board that the role of the Comprehensive Plan is to provide a general vision and guidelines as opposed to being too specific. He recalled the Board's previous discussions about keeping the Comprehensive Plan simple and straightforward. The Board agreed to eliminate this sentence. Board Member Stewart noted that the regional Vision 2040 Plan paints the City in the context of being in a beautiful environment, and she does not believe this is emphasized enough in the Comprehensive Plan. She said she reviewed the General Background Section and the Land Use Element again and identified a number of changes that would incorporate language from Vision 2040 regarding the natural environment, the amenities that attract people to the City to live and visit, and the need to protect what they have. She read the opening statement of the Vision 2040 document and stressed the importance of making sure the language in the Comprehensive Plan adequately discusses the need for maintaining a healthy environment and maintaining what the City already has. The Comprehensive Plan should appreciate the City's amazing setting and integrate it into its future plans. As an example of the type of changes she is proposing, she shared the following new language for the 4"' paragraph on Page 10 of the General Introduction Section (Attachment 1) that expands upon the assets the City cherishes and wants to protect into the future: The City of Edmonds was incorporated in 1890 with the original town site encompassing approximately 550 acres including lush forests and 5 miles of beautiful shoreline along Puget Sound. The City of Edmonds was a well - established community by the turn of the cep! M, and the present urban form preserves many characteristics of its historic origins. The community's location on the west -facing slopes of Puget Sound provides many amenities including extensive views of the water and mountains, with access to beaches and waterfront parks. The original town site is now occupied primarily by the downtown and adjacent residential areas, but all encompassing of the magnificent and natural environment. The city has expanded in area through annexations to approximately 9.1 square miles. Board Member Robles agreed with Board Member Stewart's proposed changes in principle. There are numerous statements in the Land Use Element about the need to stay within the intended form and function of the City and/or that the architectural standard needs to be within the character of the City. However, there is nothing in the Comprehensive Plan that clearly defines what the character of Edmonds is. The additional language put forward by Board Member Stewart could provide a backdrop for this information. The remainder of the Board concurred. The Board agreed that the best approach would be to send the General Introduction Section and Land Use Element forward to the City Council as currently written, with the additional changes identified tonight. However, it should be understood that they are unfinished documents that the Board will continue to revise. They invited Board Member Stewart to forward her proposed changes to staff for dissemination amongst the Board Members. The Board Members could review the changes and forward appropriate comments to staff in preparation for a continued discussion at a future meeting. Mr. Chave agreed to review the extended agenda and identify a date for the Board's continued discussion, as well as a deadline for submitting written comments. Chair Tibbott commented that he found the historical background contained in the General Introductory Section to be very interesting and well put together. He felt the need to alert other citizens of Edmonds about the information because it is very valuable in terms of understanding the history of the City. Vice Chair Lovell referred to Page 57 of the Land Use Element (Attachment 4), which talks about activity centers. He noted that the verbiage indicates there are two activity centers in Edmonds, but it does not indicate where the activity centers are located. He asked if this sentence refers specifically to the Downtown/Waterfront and Medical/Highway 99 Activity Centers and not the neighborhood centers. Mr. Chave said it is intended to refer to the two activity centers, and perhaps it would be appropriate to specifically call them out at the end of the sentence. He explained that the two activity centers is where the City anticipates the most intensive and walkable areas in the City will be located. Because there is good transit service in these areas, it is anticipated they will experience more change than the neighborhood centers, which are fairly limited by geography and historical development. Planning Board Minutes January 14, 2015 Page 3 Vice Chair Lovell referred to the framework goals that activity centers in Edmonds are intended to address (Pages 57 and 58 of Attachment 4) and asked if these same framework goals would apply to the neighborhood centers, as well. Mr. Chave said they would apply to some degree, but they are intended to be specific to the activity centers. Vice Chair Lovell observed that language related to Five Corners and other neighborhood centers can be found in other sections of the Comprehensive Plan. Vice Chair Lovell referred to Downtown/Waterfront Goals B and C (Page 62 of Attachment A), which both make reference to Edmonds Crossing at Point Edwards. He asked if Edmonds Crossing is still a viable project or if its reference should be removed from the Comprehensive Plan. Mr. Chave answered that the Edmonds Crossing Project at Point Edwards continues to be the City's expressed desire. While there are questions about funding and when the project might move forward, the City has not expressed a desire or conclusion that it should not be a goal. He cautioned that the City should approach this project carefully with a detailed, thorough evaluation of alternatives. Because of the history of documents and reports and the multi jurisdictional partnerships, it is not a decision the City would want to take lightly on its own. Mr. Chave pointed out that changes were made throughout the Downtown/Waterfront Plan to address the community's desire to pursue emergency access over the tracks and to support transit facilities in the downtown. He summarized that while the City does not want to give up on Edmonds Crossing at Point Edwards, having a little more language in the Comprehensive Plan about these shorter -term goals would be appropriate. Vice Chair Lovell said he supports the language, as drafted, which adequately and clearly addresses the need to solve problems such as ferry queuing and emergency access over the railroad tracks. Vice Chair Lovell noted that Downtown/Waterfront Goals B and C (Page 62 of Attachment 4) also mention the Port of Edmonds Master Plan. He asked if the Port currently has an up-to-date master plan. Mr. Chave answered affirmatively. He recalled previous discussions about whether or not the Comprehensive Plan should continue to adopt the Port's Master Plan by reference. In either case, it is not part of the materials the Commission is considering at this time. Mr. Chave pointed out another subtle change on Page 70 of Attachment 4. Staff is recommending that the timeline (5 to 7 years) for short-term actions be eliminated. He explained that, at this time, the City does not know what the actual time frame for the short-term actions will be. Vice Chair Lovell said he supports the additional short-term action (Item 1 on Page 70 of Attachment 4), which calls for developing a short-term plan and strategy to address transportation conflicts and safety issues involving the interaction of rail, ferry, vehicular and pedestrian traffic in the waterfront area. Mr. Chave noted that the last sentence in Item 3 on Page 70 of Attachment 4 was also updated to read, "during the short-term planning period, evaluate the feasibility and benefits of retaining a commuter rail and transit presence after the construction of Edmonds Crossing." Chair Tibbott asked if the proposed language provides enough clarity for planning purposes. Mr. Chave answered affirmatively. He explained that the intent is to provide a sense of what the overall direction will be without necessarily detailing the conclusion. Board Member Robles said the language on Page 48 of Attachment 4 makes it appear as though the City is changing the way useable land is calculated. If that is the case, the document should also make note of the previous method. Mr. Chave said no changes are being proposed to the method of calculating useable land. He cautioned against providing too much detail of this type in a planning document. Board Member Robles agreed, but suggested that the language should make it clear that no changes were made. Board Member Robles referred to Page 53 of Attachment 4 and asked how the term "employment is defined." Mr. Chave answered that the term refers to all employment that is tracked and defined by the State Office of Financial Management. He explained that the City does not do its own independent study. The State tracks businesses licenses and the information is funneled to the Puget Sound Regional Council to be sorted out by jurisdiction. Board Member Robles said he supports the I' bulleted item on Page 60 of Attachment 4, which calls out the increased concern about conflicts and safety issues related to the interaction of rail, ferry, vehicular and pedestrian traffic. However, he suggested that the statement should also identify the need for emergency response infrastructure. He noted that even a simple derailment could block access across the tracks for hours and people could be stuck on the other side. Mr. Chave agreed that this is one of the issues that should be studied when trying to resolve safety problems, and the Council has had discussions with staff about ideas, short of doing a physical connection, such as having some sort of aid presence on the Planning Board Minutes January 14, 2015 Page 4 waterfront, itself, so there is emergency response available independent of the ability to cross the tracks. Obviously, there would be a cost associated with this concept, but it is within the realm of options that will be looked at. Vice Chair Lovell pointed out that the P bulleted item on Page 61 was changed to add a sentence about resolving transportation conflicts and safety issues involving the interaction of rail, ferry, vehicular and pedestrian traffic. Board Member Robles expressed concern that the language does not specifically call out emergency response. Mr. Chave suggested that "safety" would include emergency response, as well. He reminded the Board that the thrust of the policies is to call out the problems and the need to address them, but not to assume or guess what the solution will be. Student Representative Zhao observed that there are currently emergency towers on the terminal side of the tracks. Pressing the button on the tower activates the emergency system and a light goes on. He suggested it would be helpful to have these towers on both sides of the tracks. He noted that the towers were originally designed for personal safety on college campus. Board Member Robles said this would not solve issues related to emergency response, which is not trivial. He suggested that, at the very least, there should be defibrillators on the water side of the tracks. Mr. Chave agreed and said all of these ideas could be discussed as part of the safety issue. Board Member Robles referred to the bulleted list of components of the overall vision of the downtown/waterfront area on Page 60 of Attachment 4. He noted that that this section includes very little regarding electric charging stations and technology such as public WiFi, bike sharing, and auxiliary use of smart phones to gain data transport. He suggested that additional language related to technology would be appropriate in this section. Board Member Robles noted that a lot of language was removed from the Land Use Element starting on Page 78 of Attachment 4. Mr. Chave said the language is related to design, and was moved to the Urban Design Element of the Comprehensive Plan. Mr. Chave also noted that references to water resources and drainage management on Page 114 of Attachment 4 were eliminated because they are already addressed in the Stormwater Element. Including them in the Land Use Element would be conflicting and repetitive. Board Member Robles raised a concern that Item C.3 on Page 94 of Attachment 4 may not be adequate to create sufficient buffers between higher density and adjoining residential neighborhoods. He specifically referred to Highway 99, where there is an underrepresented population that will endure a fairly stout amount of development. There are opportunities to use innovations such as green walls, urban farms and other sustainable resources as a transition between the active zones and the residential communities. Board Member Lovell pointed out that Item C.2 on Page 94 of Attachment 4 has more specific language about transition and was added to address the concerns Board Member Robles brought forward at the last meeting. Board Member Robles agreed that the new language in Item C.2 adequately addresses his concern. Board Member Stewart referred to Table 6 on Page 42 of Attachment 3 and asked what is meant by the term "nominal change." Mr. Chave explained that "nominal change" is a mathematical term. Nominal is numeric. The number for nominal change in the 2010 column represents the difference between 2000 and 2010, and the number for nominal change in the 2035 column represents the difference between 2010 and 2035. However, the number for nominal change in the 2000 column has no reference and probably referred to an earlier count. It should probably be changed to a dash. He agreed to review this table and see if can be made clearer. Board Member Stewart asked if the bulleted items on Page 43 of Attachment 3 were taken from the Vision 2040 Plan. Mr. Chave answered that the only reference to the Vision 2040 Plan is the general reference to the activity center concept. There is no connection between the framework goals (bulleted list) and the Vision 2040 Plan. The list is intended to provide a description of what the City is trying to do in activity centers in Edmonds. He explained that the activity centers in Edmonds do not really track with the regional centers and other higher -ordered centers that are called out in Vision 2040. While they are consistent with the concept of having some sort of pedestrian, transit -oriented development in the City, they are at a different scale than the significant centers called out in Vision 2040. Board Member Stewart recommended that bicycle mobility should be specifically called out in the Comprehensive Plan. She recalled that the Board has discussed the concept of complete streets and some of the overarching vision in the Comprehensive Plan talks about the ability to move around and stay healthy, as well as connectivity. Planning Board Minutes January 14, 2015 Page 5 Board Member Stewart recalled that at their last meeting, it was noted that the City Council's discussion regarding the Senior Center included the concept of the facility becoming a senior center/community center. Because discussions regarding the concept have been robust, she felt it would be prudent to include a reference in the Comprehensive Plan. Mr. Chave recalled that the Board previously agreed it would be premature to include the concept at the Comprehensive Plan level before the senior center process has run its course. He noted that the Comprehensive Plan could be amended in the future to incorporate the concept, if appropriate. Student Representative Zhao noted that Table 6 on Page 55 of Attachment 4 is intended to replace Table 7 on Page 56 of Attachment 4. The first data point on Table 7 is 1990, but the 1990 data was eliminated from Table 6. He suggested that Board Member Stewart's concern could be resolved by putting the 1990 figures back in. Mr. Chave agreed that would be the easiest way to make the table clearer. However, he cautioned that the 1990 figures can be misleading because the City experienced a lot of annexation in the late 1990's. Mr. Chave reminded the Board that the plan is to review Board Member Stewart's proposed changes and then schedule a continued discussion at a future meeting. EDMONDS PARKS, RECREATION AND CULTURAL SERVICES PLANNING BOARD REPORT Ms. Hite presented the Parks, Recreation and Cultural Services report, specifically noting the following: • Five Corners Roundabout Artwork. The roundabout is now open and it is beautiful and includes and art element that was created by a local artist and selected by the Arts Commission through a public process. It has some blue lighting that is supposed to depict opening up to the waterfront. They are very happy with the artwork and have heard great comments from the community. • 41b Avenue Cultural Corridor. Based on the Community Cultural Plan, the City has been working the Arts Commission on some temporary art installments that might help bring visibility to the corridor short of getting a grant for $5 million to actually complete the corridor improvements. The plan is to incorporate a few elements this year and see how they are received by the community. She provided pictures and explained the concepts, which include parklets, crosswalk installments, etc. • Edmonds Downtown Cultural Heritage Tour. The tour is up and running and people have been using it. The actual signage and stories are located mostly in downtown and tell a lot of the history of Edmonds. She encouraged the Board Members to take the opportunity to check them out. • SR 99 International District Enhancement Project. The lanterns and banners were installed in the International District during the past year, and staff will continue to work with the Engineering Department to do more work on SR 99. • Flower Basket Poles. A total of 22 poles with unique art elements have been installed in downtown Edmonds and a walking map is available on the website and at the Francis Anderson Center. The existing poles are rusted and bent, but they are still functional and safe. The goal is to replace all of the poles over the next two years. The program has received rave reviews from the community. • Edmonds Marsh/Marina Beach Master Plan. The Parks Department is working with the Stormwater Division on a project to daylight Willow Creek, and 30% of the design and feasibility work has been completed. The City recently received another grant for $160,000 to complete 60% design and begin the permitting work. However, in order to get to 60% design detail, it is necessary to figure out where Willow Creek is going to out lie on Marina Beach Park. The City hired consultant, Shannon Wilson, to conduct a study on two possible alternatives: one through the southern portion of the beach property through what is known as the off -leash area and the other through the northern portion of the property over the green hill and through the parking lot? The City has also hired consulting firm, Walker Macy Architects, to help the City through the master plan process for Marina Beach Park. The consulting team will consider the two options, as well as alternatives that might be better for the park. A project advisory committee has been formed to work with the consultant to walk the community through the master plan process. She pointed out that Marina Beach Park has never Planning Board Minutes January 14, 2015 Page 6 been master planned; it was just created. This process will provide an opportunity for the City to work with the community on the outfall of Willow Creek, as well as creating some environmental and educational pieces with the salmon and pedestrian walks over the creek. The process will identify the components of the park that the community still loves and wants to retain, as well as new components. Once the master plan is completed in draft form, it will be presented to the Planning Board for review and a public hearing. The goal is for the City Council to approve the master plan, including the outfall and alignment of Willow Creek, so the City can proceed to the 60% design level and the move towards 90% design and construction. She said she anticipates a three to five year time span for the projected to be completed. Vice Chair Lovell asked if salmon habitat was included as part of the Willow Creek study. Ms. Hite answered that the channels identified in the study by Shannon Wilson have been shown to be very attractive for salmon to come back into the marsh. She explained that the study and project has a dual purpose of creating the natural habitat again, but also containing stormwater to reduce flooding problems on SR-104. Chair Tibbott asked if the off -leash area is considered part of Marina Beach Park, and Ms. Hite answered affirmatively. Chair Tibbott asked if the off -leash park could be maintained if there is a creek channel running through it. Ms. Hite said it could be maintained, but it might be smaller and/or have a different look. Prospective consultants for the master plan were asked to share their preliminary innovative ideas for incorporating the creek outfall into Marina Beach Park. The consulting firm that was hired provided two dynamic designs that would introduce educational and natural elements to the park, but continue to maintain the existing components. Chair Tibbott asked if would make sense, under some circumstances, to maintain the off -leash park in its current location. Ms. Hite said it could. She noted that there has been a lot of discussion about the environmental impact of dogs on the beach, there is also a large contingent of Edmonds residents who love the dog park in its current location. It will be up to the public to guide the process and then the Planning Board and City Council to decide what is best for the community. Yost Pool. This pool is one of the gems of the community, and several capital projects have taken place over the past few years. The boiler was replaced in 2014, which resulted in a significant savings in utility bills and allowed the pool to operate much more efficiently. The plan is to replace the spa in 2015. The spa has had continual problems, but it is popular amongst the community given the cold mornings when people come for lap swimming and lessons. The City entered into a partnership with the YMCA in 2014 to provide lifeguards and swim instructors. For the first time in the history of the pool, it finished the year in the positive financially. The City provided the registration platform and programming, and the YMCA ran the program. They are currently in discussions with the YMCA for the 2015 season, and the YMCA has indicated a desire to run the entire pool, including maintenance. City Park Spray Pad Design. The playground equipment at City Park was replaced in 2014. However, they ran into some technical issues related to the spray pad, and the City hired consultant Site Workshop to redesign the project. The consultant was able to resolve the technical issues and the permits were issued on December 2nd. The City will go out to bid for the spray equipment next week and advertise for construction bids in two to three weeks. The goal is to break ground in March with completion by Memorial Day. However, she acknowledged that the project may not be completed until mid June. She emphasized that the project has received a lot of community and grant support ($500,000 grant from the Washington State Recreation and Conservation Office (RCO), $270,000 from the Hazel Miller Foundation, $80,000 from Snohomish County, and the City paid for the remainder of the $1.3 million project). The new play equipment was installed last June by a group of over 80 volunteers who worked hard over a three-day weekend. • Dayton Street Plaza. Demolition work for this project will begin next week, and funds have been set aside for its completion in 2015. The plaza will be located outside of the old Public Works Building on 2nd and Dayton, and the designs were done by Barker Landscape several years ago. The plaza is meant to be a draw for people to enjoy the plaza but also a resting point for those walking from downtown to the waterfront. • Park Impact Fees. In 2013 park impact fees were assessed at 50%, and starting in October of 2014 the assessment was at 100%. It is projected that at the end of 2015, the City will have between $500,000 and $600,000 to invest in parks that will help address the increased demand associated with growth. Planning Board Minutes January 14, 2015 Page 7 Former Woodway High School Development. This project is currently under design and will break ground in 2015. The City secured a $750,000 grant from the State and a $2.5 million grant from Verdant Health Care. The City and Edmonds School District are each contributing $500,000. The total cost of Phase I of the project is $4.2 million. The emphasis is to create a health and wellness site at the former high school. It is a destination site where parking is already available and no additional impervious surface would be needed. There is a dedicated driveway in place and the site is surrounded by trees and a buffer. The project would create two, multi -use, full-sized turf fields. Although lighting was originally part of a later phase, but the City is hoping to include it in Phase I. The beauty of turf fields is that they can be used year round. Without lights, it would be hard to use them after 5:00 p.m. in the winter. She is currently working on a partnership with the school district that would allow the City to give the district $500,000 for the project. It would also give the City scheduling rights, as well as the maintenance responsibility for the fields. Museum Plaza. This is a city -owned building that is leased to the museum. The Edmonds South Snohomish County Historical Society is planning to develop a community plaza in front of the museum entry, and they have provided a rough schematic drawing of their plans. City staff will work with the Society to move the project forward. She noted that the inside of the building was recently restored. Chair Tibbott asked if there are any restrictions due to the historic nature of the building. Mr. Chave said the structure is the former Carnegie Library and is listed on the Edmonds Register of Historic Places. Any changes must go through the Historic Preservation Commission for a Certificate of Appropriateness. The Commission's charge is to review changes to ensure that the historic integrity of the building remains intact. He advised that the preliminary concept was recently presented to the Historic Preservation Commission and received positive review. However, some modifications will be made based on feedback from the Commission. • Parks, Recreation and Open Space (PROS) Plan and Community Cultural Plan. Updates to both of these plans were recently adopted. The PROS Plan incorporates a new chapter on habitat and open space, as well as a new chapter talking about park foundations in metropolitan park districts. The robust plans will serve as a guide for the next six years. • Cemetery. The City will be researching and planning for a cemetery mapping project in 2016. At this time, the cemetery is not marked or mapped, and the project is an effort to bring the cemetery to a standard so it can be operated efficiently. Commissioner Robles suggested that an Edmonds app would be useful to provide an avenue for City information to be downloaded. Ms. Hite agreed and said the City is using QR codes around the city so people can take pictures and get information. Community Garden. The City is working with the Lutheran Church at Westgate, who hosted the community garden that opened in 2014. They are also working on plans to have a community garden on the north side of the Old Woodway High School site. Chair Tibbott recalled that the City previously identified Esperance Park as a possible community garden location. Ms. Hite said the City did have some discussion with Snohomish County, who was in the process of purchasing the school district property located to the south of Esperance Park. The purchase was completed in November and Snohomish County is currently working with the community to master plan the park. There has been a lot of community support for a community garden and/or off -leash park in this location. She noted that it is not within the City limits, but Edmonds residents are able to use the park and benefit from it. Civic Stadium. The City has had this acquisition in its Comprehensive Plan and PROS Plan for a number of years. Discussions with the school district have often failed, but now they are on the edge of possibly purchasing it. The City conducted an appraisal of the property and submitted an RCO grant for acquisition funds, but they will not know about the funds until May. The district is now performing its appraisal, and the goal is to complete the transaction in 2015. Board Member Nelson asked about the City's current plan for the Civic Center fields. Ms. Hite said it is a current asset to the City's Park system, and numerous activities already happen there. If acquired this year, $100,000 has been set aside to master plan the park in 2016. It may be that the community wants to keep it the same, or there may be an interest in creating a key signature downtown park that has more walking areas, berms, etc. Some capital improvements are needed and the stadium is in significant disrepair and expensive to maintain. • Fishing Pier. This facility is 35 years old. The City approached RCO with a grant application for $1.3 million and the requests have scored high. They are also collaborating with the Department of Fish and Wildlife, which owns the pier that sits on Port property. The facility currently has a three-way partnership, and all parties have a vested interest in Planning Board Minutes January 14, 2015 Page 8 continuing to maintain the pier as an asset in the park system. Some students from Edmonds Woodway High School have been asked to help solicit feedback from the community about what they would like to see on the pier, itself. While most of the work will be focused on the underneath portions of the pier, there are some funds to improve amenities for the users, as well. Board Member Stewart inquired about the timeline for the project, particularly the work done by the students. Ms. Hite said the City's original intent was to go out to bid and start project construction on June ls` However, the Department of Fish and Wildlife would like to postpone the project until the actual grant funding is available in September. Because work during the winter months could impact the integrity of the repairs, the project will likely be pushed out to the spring of 2016. However, some of the above -grade repairs may move forward this summer. Student Conservation Association. The City has collaborated with the Student Conservation Association for the past few years to bring in 10 to 12 young people from the work/education program to help the City in the parks over the summer. The students get paid for their work, and the program is targeted to youth between 14 and 21. The Hazel Miller Foundation also supports the association's efforts. It is fun to see young people learn about and invest in the environment and the community. Board Member Nelson asked Ms. Hite to describe some of the work the youth have done. Ms. Hite said the spray pad at City Park required wetland mitigation along the west side of SR-104, and the youth completed the entire project. • Anderson Center Amphitheatre. This is a gem in the community that is used quite a bit. The roof will be replaced in 2015 as it is in disrepair. The stage will be redone, as well. However, the footprint of the facility will remain the same. Veteran's Plaza. Based on a recommendation from the Planning Board, the City Council charged a community group with developing a design for a Veteran's Plaza located outside the Public Safety Building. This group has been working with the City and will present their preferred concept design to the City Council on January 20th. A public hearing is also scheduled for the same date. She explained that the intent of the design is to create a place rather than a thoroughfare between the parking area and City Hall and/or the Public Safety Building. The design includes a wall that would represent the five branches of the military, and the branches would be separated by water features. The walls would be about shoulder height. The current plaza area would be retained, as would the existing trees and landscaping. However, seating would be added. The wall in the garden area would also be reconfigured to make it a nice seating area that allows for people to reflect. The committee is very excited about the design. Board Member Stewart asked if the project would result in more impervious surface. Ms. Hite answered no. Board Member Stewart pointed out that there are opportunities, such as rain gardens, to improve stormwater management over what currently exists. Ms. Hite agreed to consider options for improved stormwater management. Recreation. The recreation program had a great year in 2014, with a very successful health and fitness expo that was co -sponsored by the Edmonds School District. The Beach Ranger program continued and was actually expanded to its original hours prior to 2011. Approximately 100 people participated in the Street Scramble. The every -day programs were successful, as well; and enrollment is picking up from the recession. Pickle ball has been trending, and there is a large club in Edmonds. At the request of the club, the City striped two of the tennis courts at Yost Park for pickle ball, as well. They currently have four nets available, and they are excited to host a tournament in 2015. Metropolitan Park District. The Parks Department staff may revisit the issue of a Metropolitan Park District. A citizens' group previously presented a proposal to the City Council, which was approved and scheduled to go on the ballot. Because the budget forecast improved, the City Council subsequently decided against asking voters for more taxes. However, the budget forecast in coming years is not as positive, and there must be some discussion about what the community can do. One concept called out in the PROS Plan is the exploration of a Metropolitan Park District. She noted that the City of Seattle just recently passed a $42 million program by a wide majority vote. About 90% of all parks levies and revenue packages put to voters across the state have passed, which makes it clear that people want parks and they are part of the quality of life. She encouraged the community to continue to discuss the option. • Park Naming Policy. The Parks Department staff will work on a park naming policy in 2015. Chair Tibbott asked for an update on the Sunset Avenue Walkway. Ms. Hite answered that the Public Works Department restriped the streets to identify walkways along Sunset Avenue without specific involvement from the Parks Department. Planning Board Minutes January 14, 2015 Page 9 The Parks Department's interest would be developing the southern portion of Sunset Avenue so it is more inviting for people to sit and view the sound. She supports the bicycle/walkway trail. She said she leads the senior walking program, and every time they got to Sunset Avenue they ended up on a dirt path. By the end of the summer they were able to walk on cement on the view side. The project is controversial, and the intent is to gauge community feedback after the one-year trial period. Chair Tibbott asked if funding for the Sunset Avenue Walkway Project would come from the Parks or Public Works Budget. Ms. Hite said there are a number of funding options. However, parks funding and/or RCO grant funding would only be available if it is a dedicated trail with a division to a street. As currently configured, the walkway would not qualify. Board Member Robles asked if the City has a stake in the Meadowdale Playfield turf project. Ms. Hite answered affirmatively. She explained that the City of Lynnwood is taking a lead on the project, and they have applied for grant funding. In addition, $1 million from a recent school district bond is dedicated to the playfields. The City actually uses the playfields via a joint partnership with the school district and the City of Lynnwood. Lynnwood maintains the fields and the City of Edmonds helps pay for the maintenance. The City of Edmonds has set aside capital money to help with the turf project, and she anticipates that the fields will be replaced in 2016 or 2017. She noted that the City of Edmonds owns the Meadowdale Clubhouse and has plans to replace the play equipment this year. Board Member Robles asked if the City has plans to remodel the interior of the clubhouse, and Ms. Hite answered not at this time. Board Member Robles commented that it would great to have an entry into the county park from Edmonds. Board Member Stewart asked how much additional potable water would be required to operate the spray pad beyond what is used now. Ms. Hite said the proposed recirculating system would significantly reduce the amount of water needed to operate the facility. She noted that Edmonds would be the first spray pad in Snohomish County that uses a recirculating system rather than a direct -to -drain system. As proposed, the water would be chlorinated and recirculated to the site. Vice Chair Lovell suggested that educational signage be added near the spray pad to inform the public of the sustainable benefits of the proposed system. Ms. Hite concluded her presentation by noting that the Parks Department staff is an incredible team, and they have accomplished a lot over the past year. They are passionate about their work and committed to Edmonds. Chair Tibbott asked Ms. Hite to extend the Board's appreciation to the Parks Department staff. He also suggested that the written report should be published on the Planning Board's website. DISCUSSION/RECOMMENDATION FOR UTILITIES ELEMENT OF 2015 COMPREHENSIVE PLAN UPDATE Mr. Chave explained that the Utilities Element covers potable water, sanitary sewer, storm and surface water management and solid waste. The goals and policies outlined in the Storm and Surface Water Management Section came directly from the Storm and Surface Water Management Plan that was more recently updated, and there is a reference to the plan where more detailed information is available. However, because there are no itemized goals and policies in the Potable Water and Sanitary Sewer Plans, the language in the respective sections is more narrative to reflect the language in the plans. When the two plans are updated in the future, they will be reformatted to be consistent with the Storm and Surface Water Management Plan. The Solid Waste Section contains essentially new language that replaces the old, dated language. Board Member Stewart recalled discussions amongst the Mayor's Climate Protection Committee regarding recent staff and City Council discussions about developing a zero waste policy. She asked if this policy has evolved to the point it can be presented and incorporated into the Utilities Element. She expressed her belief that more work is needed on the Solid Waste Section. Mr. Chave noted that the section has been substantially written by Steve Fisher from Public Works, and it represents his best shot at what he understands the current direction to be. However, he acknowledged that the document could change based on ongoing discussions with the City Council regarding future programs. Board Member Robles noted that the Solid Waste Section does not address items such as electronics, batteries, and light bulbs. While the law requires that these items be recycled at a specialized center, there is no incentive for people to do so and the items often wind up in the garbage. He acknowledged it is already difficult for utilities to receive two separate sets of garbage, and there may be resistance to accepting a third. However, he felt it is necessary. Planning Board Minutes January 14, 2015 Page 10 Mr. Chave pointed out that Goal D on Page 99 of Attachment 1 actually addresses the concept of zero waste strategies. In addition, Goal C talks about toxic and other types of materials that are difficult to recycle. Board Member Nelson voiced support for Goal D, which calls for investigating policies and activities that will lead to development of a zero waste strategy. Vice Chair Lovell referenced Goal C.3 on Page 142 of Attachment 2 and suggested it be changed to read, "Support programs that establish collection and recycling infrastructure for materials that are toxic, hazardous, hard -to -handle or under - recycled." Mr. Chave agreed to seek feedback from Mr. Fisher regarding this proposed change. He said he does not anticipate a problem with adding the word "hazardous," and he would also ask what "product stewardship initiatives" is intended to include as opposed to "program." Board Member Stewart said her understanding is that the storm and surface water goals and policies will be rehashed in some fashion, zeroing in on water resources and drainage management. She asked if this discussion would also include green infrastructure techniques such as permeable pavement, rain gardens, and evapo-transportation practices. Mr. Chave agreed to forward the Board Members a link to the Storm and Surface Water Management Plan, which is also available via the City's website. He said his understanding from the stormwater engineer is that it includes extensive discussion about green infrastructure techniques. Chair Tibbott asked to what extent the Utilities Element would connect with the Shoreline Management Program (SMP). Mr. Chave answered that there is a connection in a very general sense because there are utility facilities located within the shoreline area. There are goals and policies in the SMP that talk about the utilities, particularly about stormwater and natural features, and there is a lot of discussion in the SMP and Critical Area Regulations about promoting and protecting natural drainage systems, etc. However, the emphasis between the two documents is different. Chair Tibbott said he understands the emphasis is different, but he would not want one to override or be incompatible with the goals of the other. Mr. Chave did not believe that would be the case. He encouraged the Board Members to review the Storm and Surface Water Management Plan and forward their questions to the Stormwater Engineer. Board Member Stewart announced that the group, Edmonds Woodway High School Students Saving Salmon, along with four partners (Sound Salmon Solutions, City of Edmonds, Earthcorp, and NOAA), have applied for a grant from the Fish and Wildlife Foundation to develop a water -quality testing program using students who are trained and supervised to do the monitoring. She expressed her belief that the program would support what needs to happen with regarding to monitoring water quality for humans and fish. At this time, they are looking to set up ten monitoring locations, and a walk will be scheduled to identify the good sites for water -quality testing. She invited Board Members to participate. IC7�►�/I�►1'L�]1��►:rY�►11]�17:Tli�CI17:1 It was discussed that the Economic Development Element of the Comprehensive Plan is scheduled for Board review on January 28th. Vice Chair Lovell reported on his attendance at the December 17th meeting of the Economic Development Commission, at which the discussion focused on a draft of their recommended goals and policies for inclusion in the Economic Development Element of the Comprehensive Plan. This input will be incorporated into the document that is presented to the Board for review on January 28th. He summarized that the Commission identified five major goals: healthy business community, land use policies to support economic development, diversifying the city's economic make up, sustaining and attracting business and investment and expanding and enhancing the tourism sector of the City. He said he would attend the Commission's January 215t meeting and provide additional feedback to the Board. Vice Chair Lovell said the Economic Development Commission also had a discussion about potential topics for more detailed study in 2015. The topics included: safety issues related to the railroad crossing, surveying current business/retail establishments, identifying areas where economic development can be promoted, engaging the Highway 99 businesses and working collaboratively with them, setting up a business -oriented website, analyzing and enhancing waterfront businesses, food trucks, creating a public gathering space, zoning changes to enhance economic development, Five Corners opportunities, boutique hotel in downtown, an EDC liaison program, items in the Strategic Action Plan and studying how to capture ferry traffic for greater tourism opportunity. He said he expects the Commission will narrow the list down in the next few months and establish subcommittees to study the issues further. PLANNING BOARD CHAIR COMMENTS Planning Board Minutes January 14, 2015 Page 11 Chair Tibbott requested a progress report on the City's effort to fill the vacant Planning Board position. Mr. Chave reported that staff is in the process of filling the position. Chair Tibbott encouraged Board Members to invite people they know to apply for the position. Chair Tibbott said he continues to meet with the SR-104/Edmonds Way Study Group. It has been interesting to see and understand how the corridor functions. The study will be a valuable piece of information. PLANNING BOARD MEMBER COMMENTS Board Member Nelson thanked the City Council for approving funds to videotape the Planning Board meetings. People have busy lives and cannot always attend meetings and/or read minutes on the website. He hopes it results in more public participation. Vice Chair Lovell thanked Mr. Chave and his staff for incorporating the Board's comments into the Comprehensive Plan Elements. He also thanked Ms. Hite for providing a wonderful report on park projects. He highly recommended the Board Members read the latest issue the American Planning Magazine, which is primarily dedicated to the City of Seattle. He particularly referenced the article written by Mark Hinshaw titled, "What a Difference a Decade Makes." Board Member Stewart announced an opportunity to attend a free class titled, `Be a Toxic Free Zone," sponsored by the Pacific Science Center. The class focuses on everyday products that people use and what to be aware of. The classes are scheduled for six Monday evenings at the Conference Center in Edmonds from 6:30 to 8:30 p.m. starting on January 26t'. ADJOURNMENT The Board meeting was adjourned at 9:40 p.m. Planning Board Minutes January 14, 2015 Page 12 AI-7433 Planning Board Agenda Meeting Date: 01/28/2015 Discussion on Economic Development Element Update Staff Lead/Author: Patrick Doherty Department: Initiated By: Planning Information Subject/Purpose Discussion on Economic Development Element Update Staff Recommendation Discuss and provide any direction on the draft element Previous Board Action N/A Narrative As part of the 2015 Major Update of the City of Edmonds Comprehensive Plan attached you will find the proposed revisions to the Economic Development Element. As the oldest element of the current Comprehensive Plan (approved in 2006) (see Attachment 3) the Economic Development Element includes some of the most outdated information and least current expression of City goals and policies in the entire Plan. Consequently, these proposed revisions constitute a substantial re -write of the element, while still reflecting the pre-existing element's layout, consisting of an Introduction and Discussion, Goals and Policies, and Implementation. These proposed revisions of the Goals and Policies were presented to the Economic Development Commission (EDC) for their review and comment at their December 17, 2014 meeting. Numerous revisions and additions were suggested by the EDC, which have been incorporated into this final draft. Attached for reference is a copy of the minutes of 12/17/14 EDC meeting (Attachment 4). A track -changes version of the Goals and Policies is attached, as well, to illustrate the exact revisions made in this most important section (see Attachment 2). The current Economic Development Element from the existing Comprehensive Plan is included for reference in Attachment 3. Attachments Attachment 1: Final Draft Economic Development Element 2015 Attachment 2: Goals and Policies, track changes version Attachment 3: Economic Development 2006 Attachment 4: EDC Minutes of 12.17.14 Economic Development Introduction. The purpose of the Economic Development Element is to state the city's economic development policies clearly in one place, thereby guiding local policymakers and informing the public about issues relating to the local economy. The chapter is divided into four major sections: Introduction and Discussion of Economic Development, The Edmonds Economy, Economic Development Goals and Policies, and Implementation. Introduction and Discussion of Economic Development Why is economic development important? 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." With similar objectives in mind economic development in Edmonds can be defined as "the city's goals, policies and strategies for growing the local economy in order to enhance the quality of life." Economic development is essential to preserving the existing level of service and attaining long-range goals for sustainable growth and community vitality. In general, economic development programs and activities affect the local economy by broadening and strengthening the local tax base, providing a greater range of goods and services for local residents, and by providing meaningful employment and entrepreneurial opportunities. Economic development priorities vary widely from community to community, but Edmonds' priorities have historically coincided with those of many other Puget Sound area communities, including: creating affordable housing, adding employment, downtown and business district revitalization, small business assistance, expansion of existing businesses, new business recruitment and site selection assistance, community marketing, historic preservation, tourism generation, public relations, streamlining permit processes, and special development or streetscape projects (including public art). While the state of the economy may change greatly as boom and bust cycles come and go with each passing decade, these economic development priorities seem to stand the test of time. Greater or lesser emphasis may be placed on specific priorities, but for communities in Washington, including Edmonds, these are the main economic development activities to continue to pursue. The Edmonds Economy A solid understanding of the local economy helps a community to effectively guide policies, investments, staff resources, and future plans. The following analysis provides a background of the 94 Economic Development fundamentals of the Edmonds economy, local household and business characteristics, and their impact on municipal revenues. The Edmonds economy can best be understood by analyzing local demographics and household characteristics, local employment data, and local sales activity. Population The US Census Bureau's 2013 estimate lists 40,727 residents in Edmonds. That is a 2.6% increase since the official 2010 census, lagging behind both the Snohomish County and Washington State growth figures of 4.6% and 3.7%, respectively, during that period. Of further note in understanding the local economy are the following additional demographic factors: Average age. The average age in Edmonds is 46 years, substantially older than the countywide average age of 37, indicating a sizeable retiree population. Several conclusions can be drawn from the relatively older population of Edmonds. • The size of the labor force is smaller in Edmonds than a similar -sized city with a lower average age. • While the retiree population includes a segment on fixed incomes, the city's higher -than - average household income figures suggest that there is a sizable segment of retirees who have discretionary income. Coupled with greater free time, these retirees constitute a demographic cohort that is able to engage in leisure activities and associated spending that creates economic activity. • The housing stock occupied by the older adults and couples may start to see a turn -over in the next decade, potentially providing more housing for younger adults, couples and young families. If this occurs, it could increase the size of the labor force population and increase demand for certain household and personal goods and services, as well as eating/drinking establishments. • Conversely, if the average age continues to increase, it could mean that fewer younger families and workers will reside in Edmonds. This could have a range of economic impacts that would need to be monitored. Ethnic make-up. Edmonds and greater Snohomish County exhibit a lesser degree of racial or ethnic diversity than the State as a whole or many parts of the Seattle -Tacoma -Everett metropolitan area. With 83% of residents listed as "white," Edmonds is less ethnically/racially diverse than the following nearby cities: Economic Development 95 Table XX: Percentage of Residents Listed as "White" in US Census CITY PERCENTAGE RESIDENTS LISTED AS "WHITE" IN US CENSUS Edmonds 83% Kirkland 79% Everett 74% Mill Creek 74% Shoreline 71% Seattle 69% Redmond 65% Lynnwood 63% Bellevue 1 62% Source: American Community Survey 3-yr, 2011-2013 Households. Of the 17,381 households, the degree of home ownership (69%) in Edmonds is substantially greater than many nearby cities. Table XX: Percentage of Owner Occupied Households CITY PERCENTAGE OWNER - OCCUPIED HOUSEHOLDS Edmonds 69% Shoreline 65% Mill Creek 63% Kirkland 57% Redmond 54% Lynnwood 53% Bellevue 53% Seattle 48% Everett 45% Source: American Community Survey 3-yr, 2011-2013 Household income. As would be expected by the high percentage of owner -occupied homes in Edmonds, the average household income levels are also higher than regional averages and generally, although not exclusively, higher than other nearby cities. During the period from 2008-2012 the Edmonds' average household income was $73,072 per year, compared with a Snohomish Countywide average of $68,338 and a King Countywide average of $71,175. Conclusions that can be made from the preceding data regarding ethnic make-up, home ownership and household income include the following: • With a generally more affluent population, Edmonds residents create demand for a wide variety of goods, services and activities. While nearby communities vie with Edmonds for market share to meet this demand, this fact should be kept in mind when pursuing economic development strategies. • Edmonds' very robust services sector (see below) provides many related jobs. However, often services -sector jobs pay lower wages than average. Consequently, with higher home prices and rents in Edmonds, services -sector employees may have fewer housing options here. This may create demand for more affordable housing development. 96 Economic Development Labor Force. Of the city's total 2013 population of 40,727 the US Census estimates the civilian labor force to be 21,174. This is an important figure to keep in mind when considering the number of jobs in Edmonds. While jobs per capita is often used as an econometric measure, it is can be more insightful to consider jobs per labor force population, which portrays more accurately the availability of jobs for working Edmonds residents. Employment The Edmonds economy is diverse and includes employment in the full range of business sectors (construction, finance/insurance/real estate, retail, services, warehousing/utilities/transportation, government and education). The manufacturing sector, however, provides only 87 jobs and constitutes a substantially minor employment sector, which is similar to many suburban Snohomish and King County communities. Conversely, Everett and some areas of unincorporated Snohomish County provide a large number of manufacturing jobs. With 13,149 jobs in 2013, Edmonds exhibits a ratio of 0.323 jobs per capita. However, this equates to 0.621 jobs per person in the civilian labor force. The substantial disparity between these two ratios reflects the relatively large amount of Edmonds residents who are retirees and no longer in the labor force. The following table provides a quick comparison of jobs, population and jobs per capita in Edmonds and other Snohomish and King County communities: Table. XX: Jobs per Persons in Civilian Labor Force County City Total Jobs Population # Jobs per Capita Labor Force # Jobs per Persons in Civilian Labor Force King Redmond 79,649 57,530 1.384 32,593 2.444 King Bellevue 126,425 133,992 0.944 72,726 1.738 Snohomish Everett 91,310 105,370 0.867 54,725 1.669 King Seattle 499,946 652,405 0.766 393,184 1.272 King/Snohomish Bothell 26,886 35,576 0.756 19,550 1.375 Snohomish Lynnwood 25,474 36,485 0.698 19,019 1.339 King Issaquah 22,310 33,566 0.665 18,236 1.223 King Renton 59,697 97,003 0.615 54,325 1.099 King Kirkland 41,091 84,430 0.487 48,170 0.853 Snohomish Mountlake Terrace 7,201 20,674 0.348 12,516 0.575 Snohomish Edmonds 13,149 40,727 0.323 21,174 0.621 King Shoreline 15,819 54,790 0.289 29,773 0.531 Snohomish Marysville 12,409 63,269 0.196 32,448 0.382 King Kenmore 3,556 21,611 0.165 10,998 0.323 Snohomish Lake Stevens 4,451 29,949 0.149 15,444 0.288 King Total 1,183,811 2,044,449 0.579 1,128,768 1.049 10.677 Snohomish Total 264,844 745,913 0.355 391,151 Sources: Puget Sound Regional Council; American Community Survey 3-yr, 2011-2013 As can be seen, Edmonds provides a relatively lower number of jobs per capita (0.323) than several other nearby cities. However, as mentioned above, when compared with the 21,174 Edmonds Economic Development 97 residents in the labor force, the Edmonds economy provides jobs at a ratio of 0.62 per Edmonds worker. Nevertheless, according to US Census data Edmonds -based jobs employ only about 20% of these Edmonds labor -force residents. That is to say, up to 80% of Edmonds workers travel elsewhere to work. Given that Edmonds households exhibit relatively higher median incomes, while predominately working elsewhere, this seems to suggest that the Edmonds economy does not provide a sufficient supply of higher -wage jobs. Jobs by Sector It is also of interest to analyze the break -down of jobs by sector. By far the largest single source of employment is the "services" sector, comprised of jobs in such areas as health care, accommodations and food service, arts and entertainment, professional services, etc. Swedish Medical Center - Edmonds and the numerous health care -related businesses in its vicinity provide a significant portion of these jobs in the "services" sector. In summary, this sector comprises nearly 70% of Edmonds jobs — substantially above the averages of Snohomish County and several nearby cities: Fig. XX: Edmonds Employment by Sector WTU 1.9% 2.7% Education Services 6.6% 69.7% Const/Res 3.9% FIRE Reta 3.3% 12.3% Manufacturing 0.7% Source: Puget Sound Regional Council, "Covered Employment Estimates, " 2013 Table XX: Percentage of Jobs in Service Sector LOCATION PERCENTAGE JOBS IN SERVICES SECTOR Edmonds 70% Mill Creek 59% Shoreline 46% L nnwood 1 45% Snohomish County 1 35% 98 Economic Development The second largest employment sector is retail, comprising 12.3% of all jobs. While this percentage is generally in line with countywide averages, it is notable that Lynnwood, with its regional shopping mall and nearby shopping centers, exhibits a substantially larger percentage of retail jobs, at 28%. Notwithstanding several major employers, including Swedish -Edmonds, the Edmonds School District, major assisted-living/rehab centers, larger restaurants, major auto dealers and large grocery store outlets, among others, much of Edmonds' employment base is comprised of small businesses. Among these small businesses figure retail shops, eating and drinking establishments, professional services firms, personal services establishments, and many home -based businesses. Based on the foregoing snapshot of the Edmonds employment base, the following conclusions can be drawn: • The services sector will continue to dominate the Edmonds employment base, with continued growth expected, especially in the health care sector. • While competition exists from nearby communities, the retail sector provides a significant opportunity for additional employment growth. • The following sectors will likely remain stable: education; government; finance, insurance, real estate; wholesale, transportation, utilities. • The construction sector is likely to see an upturn as additional commercial, multifamily and mixed -use development occurs throughout the City. • The manufacturing sector will likely remain minimal, but growth in the artisanal industries, such as food, beer, spirits and other products is likely to increase. • A substantial gap exists between Edmonds residents in the labor force and Edmonds -based jobs. Additional, higher -paying jobs in all sectors in Edmonds would likely help reduce this gap. Additionally, this would help increase quality of life, reduce regional commuting, and increase the City's tax revenue. • Conversely, a substantial number of jobs in Edmonds are occupied by residents of other outside communities. Additional housing within a greater distribution along the affordability spectrum could help capture the latent housing demand of many Edmonds workers. Economic Development 99 Retail Sales An analysis of overall retail sales is also very insightful in understanding the Edmonds economy. Comparison with other nearby communities yields an understanding of strengths and weaknesses in local components of retail sales, indicating potential sources of sales "leakage." The following table shows the top (over $10,000,000) retail sales sectors (by NAICS title) in 2013 of the 50 sectors reporting. Fig. XX: Top Retail Sectors in Edmonds (2013) Retail Sector (NAILS Title) Taxable RetailSales 2013 Car and Other Vehicle Dealers $ 152,240,262 Food Service, Caterers, Bars $ 86,979,230 Food Markets and Beer, Wine, and Liquor Stores $ 29,420,996 Construction (New Housing) $ 24,959,623 Apparel, Accessories, and Jewelry $ 22,774,116 Auto Repair, Car Washes, Computer Repair, and Other Personal and Household Goods Repair $ 16,197,582 Florists, Office Supply, Pet Supply, Art Dealers, Manufactured Home Dealers, and Tobacco $ 14,283,410 Medical, Surgical, Psychiatric, and Substance Abuse Hospitals $ 11,846,321 Construction (Masonry, framing, glass, etc) $ 10,896,179 Health and Personal Care Stores $ 10,486,282 Department and General Merchandise Stores $ 10,286,713 Source: Washington Department of Revenue As presented in the table, automobiles and other vehicles are the top retail sales category by a wide margin. At just over half of the car -sales figure, the food and drink sector is also substantial. Another important data set to consider is retail sales per capita, especially as it compares with other nearby communities. Fig. XX: Taxable Retail Sales per Capita CITY TAXABLE RETAIL SALES PER CAPITA Edmonds $15,198 Kirkland $23,199 Shoreline $15,582 Lynnwood $57,289 Mountlake Terrace $9,522 Mukilteo $11,203 Source: American Community Survey 3-yr, 2011-2013 As shown in Table XX, the city of Lynnwood, with its regional mall and associated shopping centers, captures a great deal of retail sales, with the highest retail sales per capita — approaching four times 100 Economic Development the amount in Edmonds. Kirkland, a similar -sized city in King County, captures modestly more retail sales, while neighboring Shoreline sees almost the same per -capita sales. Even more insightful is an estimate of sales per capita within key retail categories as a function of per -capita income, compared with Western US standards. This exercise provides an estimate of the "leakage" of retail sales to other communities that could potentially be captured by Edmonds residents within Edmonds. One starts by using standards provided by the US Census, Bureau of Labor Statistics and the Washington Department of Revenue, which indicate that the portion of annual per -capita income routinely spent by Western US residents on the main retail categories listed below is 19.94%. Based on the City's per -capita income and population, one can determine the total income anticipated to be spent by Edmonds' residents. Applying the aforementioned 19.94% retail sales expenditure rate to the City's total income, one arrives at the anticipated total retail sales by Edmonds' residents, otherwise known as "demand" for these retail categories. By analyzing the City's actual retail sales receipts for these categories, one can quantify both the total retail sales "leakage" and the relative gap within each retail category. The following tables break down this analysis: Fig. XX: Edmonds Actual Aggregate Retail Sales as a Percentage of Potential Sales DESCRIPTION TOTAL City population, 2013 Census est. 40,727 Per capita income, US Census 2011-2013 $40,892 Total % of income spent on retail categories listed (Western US Average) 19.94% Total income to be spent by Edmonds residents $1,655,408,484 Anticipated expenditures by Edmonds residents in listed retail categories $332,022,497 Estimated actual Edmonds taxable sales in retail categories listed $279,092,756 Source: US Census; American Community Survey 3-yr, 2011-2013;Bureau of Labor Statistics; Washington Department or Revenue Fig. XX: Edmonds Actual Retail Sales by Category as Percentage of Potential Sales Category %of CU Income Spent on Category (Western US Avg.) Est. Demand for Category by City's Residents 2013 Edmonds Taxable Retail Sales for Category 2013 Ratio of Total Consumed to Total Demanded -the "Gap"** Eating and Drinking Places 4.39% $73,038,154 $85,776,628 0.851 Household Textiles 0.22% $3,658,902 $1,040,569 3.516 Furniture 0.63% $10,432,119 $481,624 21.66 Floor Coverings 0.04% $611,205 $1,101,342 0.555 Major Appliances 0.39% $6,463,450 $ - Apparel and Services 2.71% $45,170,874 $20,189,446 2.237 Footwear 0.52% $8,586,846 $1,055,428 8.136 Other Apparel and Services 0.37% $6,231,959 $1,529,057 4.076 Vehicle Purchases 4.68% $77,896,151 $148,878,789 0.523 Gasoline 3.89% $64,812,702 $5,220,946 12.414 Pet Supply 0.77% $12,793,668 $2,044,641 6.257 Toys, Hobbies, and Playground Equipment 0.27% $4,446,641 $1,354,332 3.283 Personal Care Products 1.07%1 $17,879,825 $10,419,954 1.716 Total 19.94°/ $332,022,497 $279,092,756 1.19 Source: US Census; American Community Survey 3-yr, 2011-2013;Bureau of Labor Statistics, Washington Department or Revenue Economic Development 101 "Note: A ratio of 1:1 would signify a 100% capture in Edmonds of Edmonds' latent demand for that category. A ratio under I signifies a greater capture of market demand for a category than Edmonds demand. A ratio over 1 signifies uncaptured demand or a retail sales "leakage" to other communities. The principal conclusions to be drawn from the foregoing analysis of retail sales in Edmonds are as follows: • Among the main retail sales categories, Edmonds captures approximately 84% of the total retail sales that would be expected from Edmonds residents, based on Western US average retail sales rates. • This figure, however, is skewed substantially by vehicle sales, because the rate of capture in Edmonds is higher than average and the value of vehicle sales is high. Extracting vehicle sales from the equation, Edmonds captures approximately 51 % of retail sales that would be expected from Edmonds residents, based on Western US average retail sales rates. • Consequently, there is an almost 50% "leakage" of potential nonvehicle-related retail sales from Edmonds. • In addition, while the vehicle sales sector is valuable to the Edmonds economy, the remaining major retail sectors are providing substantially less than Edmonds residents' demand for such goods and services. • This all points out that, given the volatility and size of the vehicle sales sector, growth in the other sectors could help protect against an over reliance on that sector. In 2013, vehicle sales made up 32.4% of the total taxable retail sales for businesses with locations in Edmonds. City Revenues & Sustainability Economic development is an important issue not only because it addresses jobs, availability of goods and services and quality of life, but also for its role in supporting city revenues on a sustainable basis. *4 Revenue Services Quality of Life 102 Economic Development Of the City's annual tax revenues, property tax comprises 38.9%, utility tax 18.4% and sales tax 16.9%, for a combined total of almost 75% of municipal deriving from taxes. Economic vitality is key to ensuring the continued sustainability of these tax revenue sources in order to ensure continued support of valuable city services and the quality of life enjoyed by residents and businesses. Fig. XX: Edmonds General Revenues by Source 2.0% 1-6% 1.0% 2.2% ! 1 �0.6% 5.2%— ,l 1 ■ Property Taxes ■ Utility Taxes ■Sales and Use Taxes ■ Charges for Services ■ Licenses & Permits ■Transfers In ■ Uintergovernmental ■ Fines and Penalties ■ Miscellaneous ■ Excise Taxes Source: City of Edmonds Adopted 2015 Budget The following chart compares Edmonds against other nearby communities in terms of percentage contributions from sales and property taxes to municipal revenue: Fig. XX: Percentage Contribution of Sales and Property Tax COMMUNITY SALES TAX PROPERTY TAX Edmonds 17% 39% Lynnwood 28% 17% Mukilteo 20% 34% Mill Creek 21% 49% Bothell 14% 14% Kirkland 1 12% 1 18% Source: Budget documents from corresponding cities. As one can see, Lynnwood relies substantially more than Edmonds and other nearby communities on retail sales tax, given the presence of the regional shopping mall and associated shopping centers in that community. Edmonds and several other communities rely to a greater degree on property tax revenues. While this is often a more stable continued source of revenue than sales tax revenue, the State -imposed limit of no more than one -percent annual growth in property tax revenue (absent a voter -approved levy) does not keep up with inflation and has transformed this source into more of a revenue baseline rather than a source of growth. In the face of inflationary pressures and increased demands for services, municipalities like Edmonds must seek revenue growth from other sources. Economic Development 103 Additionally, in the case of Edmonds, in light of the substantial "leakage" of potential retail sales to other communities, recapture of even a modest amount of this leakage could yield much -needed additional sales tax revenue. While it is simple to establish a goal of increasing sales tax revenues, it is more difficult to determine how to implement that goal. Many cities have focused on new development because of its potentially positive impact on both sales and property taxes. Appropriately sited and sized development/redevelopment projects increase: • Property tax receipts through the "new construction" provision that captures new construction value -based property tax for the first year a project is brought on line and adds that value to the city's future property tax baseline. • Sales tax revenue from construction materials and activity. • Sales tax revenue from both personal and business spending accruing from new residents, workers and businesses within newly developed buildings. • Utility tax revenue from a greater number of utility customers. Development opportunities in Edmonds are generally limited to redevelopment in the business districts where under -developed parcels may still be found. This does not imply a need for wholesale redevelopment of entire districts, but rather an emphasis on appropriately sited and sized residential, mixed -use and commercial projects in key locations, such as the Highway 99 corridor, Westgate, Five Corners and select locations in and near Downtown. Consequently, this chapter's goals and policies reflect the need to accommodate appropriate development/redevelopment throughout the various business districts in Edmonds. Economic Development Goals and Policies Edmonds' current strengths, weaknesses, opportunities, and threats (SWOT) relating to economic development As a companion to of the foregoing analysis of the fundamentals of the Edmonds economy, the following "SWOT" analysis assists in preparation of the goals and policies for economic development in Edmonds. Strengths: I a F!71 • Picturesque waterfront community; • Distinctive neighborhoods and business districts; 104 Economic Development • Intermodal transit connections; • Traditional downtown with array of specialty retailers, food and drink establishments, entertainment and services; • Events and festivals; • Historic character; • Strong, prominent, and regionally recognized arts community; • Burgeoning health services sector, anchored by Swedish Hospital -Edmonds; • Strong and prominent educational infrastructure from public and private K-12 institutions to Edmonds Community College; • International business community; • Strong social capital and community pride; • Low rates of unemployment and poverty. Weaknesses: • Limited retail trade area due to geographical constraints (Puget Sound to the west, distance from I-5) and prominence of major regional retail center in the Lynnwood area; • Potentially restrictive land use and parking regulations in the business districts compared with other communities; • Lack of large, regularly shaped parcels to accommodate redevelopment in commercial areas outside the downtown BC zone; • Limited amusement/family entertainment establishments relative to surrounding communities. Opportunities: • Use location and "character" to leverage additional economic development by nurturing existing businesses for growth and expansion and recruiting new, complementary businesses that seek those assets; • Take advantage of existing and planned multimodal transit connections to leverage transit -oriented development; • Through enhanced connectivity with the Downtown business community, maximize Economic Development 105 the synergy and economic impact of the Edmonds Center for the Arts; • Leverage the burgeoning arts community for greater tourism, artisanal manufacturing and associated business; • Nurture artisanal and craft producers of all kinds, including microbreweries, distilleries, specialty foods, etc; • Leverage telecommunication/technology assets to provide better service for existing business customers and attract new business; • Plan and implement infrastructure improvements around the business districts to enhance their attractiveness for investment and commercial viability; • Work with property owners and developers to pursue opportunities for additional hospitality facilities in key locations, such as Downtown and the Highway 99 corridor near the medical services node around Swedish -Edmonds; • Work with property owners and developers to pursue appropriate redevelopment of underdeveloped sites in the Highway 99 corridor; • Expand and enhance tourism -promotion. Threats: • Retail "leakage" (i.e. loss of potential local sales activity to areas outside of the City of Edmonds)Wider variety and availability of housing options and commercial space elsewhere; • Concerns over the long-term fiscal sustainability of City of Edmonds services and infrastructure without additional significant business sector growth. Goals and Policies Economic Development Goal A. Foster a healthy business community that encourages appropriately scaled growth and investment that offers a wide range of goods and services, provides employment, and enhances municipal revenue. A.1. Continually strive to offer an efficient, timely and predictable regulatory environment within the framework of a strong customer service approach. A.2. Develop or maintain business recruitment programs, including a tool box of possible incentives, to encourage a wide range of new business development, including retail, service, artisanal manufacturing and professional services sectors. A.3. Foster business expansion and retention through existing and enhanced programs. 106 Economic Development A.4. Prioritize purchasing from local businesses while balancing a concern for cost containment. A.5. Promote local business through enhanced public awareness campaigns, events, awards programs and other activities. A.6. Continue to partner with business leaders, organizations and community members to solicit and address feedback to enhance the business environment. Economic Development Goal B. Revitalize and enhance the city's business districts, balancing the needs for housing, commerce and employment development with neighborhood character, amenities and scale. B.1. Adopt land use policies, zoning, and design guidelines that are supportive of economic development, while recognizing neighborhood character, context and impacts. B.2 Monitor and potentially revise parking requirements in business districts to encourage business development, while reasonably accommodating parking demand. B.3. Pursue strategic planning efforts and/or develop land use regulations that will encourage viable, appropriately scaled redevelopment of key properties in the City's business districts. B.4. Monitor and enhance the Edmonds Downtown Business Improvement District and consider the potential of additional Business Improvement Districts in other commercial areas to help fund marketing, improvement projects and beautification in a sustainable fashion. B.5. Continue to support an historic preservation program that works to identify and preserve historic architectural, archeological and cultural resources for future generations. This can include use of available incentives and the historic preservation building code to encourage property owners to register eligible historic buildings. B.6. Work to "brand" distinct business districts where there is a natural identity, such as the Highway 99 International District, Westgate, the Swedish Hospital Medical Corridor, and the 4th Avenue Arts Corridor, among others B.7. Ensure that redevelopment in business districts provide a quality environment with character, walkability and amenities for patrons and residents to enjoy. B.8. Implement regulations and/or design guidelines that will ensure the development of quality retail and commercial space that can physically accommodate a variety of future uses. Economic Development Goal C. Diversify and grow the City's economic make-up to reduce sales leakage, attract spending from nearby communities, enhance local employment, and increase municipal tax revenues to support local services. Economic Development 107 C.1. Address barriers to redevelopment in the business districts, and encourage mixed - use development, where appropriate. C.2. Leverage technology assets, such as existing fiber connections, to support technology -based businesses and potentially to pursue new revenue streams. C.3. Focus recruitment and "buy local" community marketing on consumer spending segments in which there is significant "leakage" and also a strong possibility of recapturing spending. CA. Pursue available incentives to foster appropriate redevelopment, where possible. C.5. Encourage longer hours of business operation and/or more evening uses in the business districts to add options during "peak" hours of consumer spending. Economic Development Goal D. Support and enhance the community's quality of life for residents, workers and visitors in order to sustain and attract business and investment, and enhance economic vitality. D.1. In concert with the Housing Element's Goals and Policies, pursue a housing strategy that seeks to accommodate a wide variety of housing options, both in design and affordability, to meet the demands of the full range of the working population, retirees, students, artists, et al. D.2. Support and enhance social, cultural, artistic, recreational and other learning activities for residents, workers and visitors. . D.3. Pursue efforts to communicate with the public about the value of economic vitality in sustaining the City's quality of life, services and amenities. Economic Development Goal E. Expand and enhance the tourism sector to attract outside spending to help fuel the local economy. E.1 Continue to support existing, and provide support to new, events and festivals that attract visitors. E.2. Continue to support and enhance the arts/culture sector and the visitors that arts/culture events and activities attract. E.3. Support and enhance sporting, nature, and other outdoor events and activities that attract visitors. EA. Strategically employ marketing media and resources to attract visitors. An overall marketing strategy should include a variety of traditional marketing, online marketing, earned media presence and use of social media. E.5. Market Edmonds as a year-round destination for its waterfront location, historic downtown, arts community and venues, eating and drinking establishments, international shopping and dining, natural amenities and parks, etc. 108 Economic Development E.6. Support the tourism infrastructure, including visitor amenities such as public restrooms, the visitors center, wayfinding signage, etc. E.7. Support efforts to enhance the hospitality infrastructure, including potential for increased lodging establishments Downtown and/or in other business districts. Implementation The policies in this document were constructed to provide a supportive foundation for future economic development projects, legislation and decisions. Implementing the city's policies will require cooperative involvement on the part of the City, other public entities, and business and community organizations. As stated throughout this chapter, economic development in Edmonds could require a variety of measures on the part of the City and other entities, including such measures as: • Staff support, outreach and actions in support of business attraction and expansion, as well as promotion of investment and development • Legislative actions (such as decisions related to zoning, incentives, fees and taxes, permit/business requirements, etc.) • City expenditures on such things as amenities and infrastructure, and potential property acquisition • Actions by the Port of Edmonds to attract and expand marine -related business and activity • Programs provided by Edmonds Community College that support work -force development, job readiness, job placement, etc. • Collaborative efforts between the Chamber, City and other entities to create and enhance a positive, business -friendly environment In addition, as part of a larger regional economy, the City of Edmonds and its partners must continue to work actively with regional economic development organizations such as the Economic Alliance of Snohomish County, the Snohomish County Economic Development Department, the Greater Seattle Trade Alliance, the Washington Economic Development Association, the Puget Sound Regional Council, the Prosperity Partnership, and the Washington State Department of Commerce, among others. Strategic Action Plan After approximately two years of work on the part of staff, consultants, the Economic Development Commission, and Councilmembers, together with substantial public involvement, on April 2, 2013 the Edmonds City Council approved the City's Strategic Action Plan (SAP). The plan identifies both Economic Development 109 short-term (3-5 years) and mid-term (5-10 years) community strategic objectives, as well as specific action tasks and responsible participants, schedules and performance measures to achieve them. The SAP is organized into five general strategic objectives: Create economic health, vitality and sustainability 2. Maintain, enhance and create a sustainable environment 3. Maintain and enhance Edmonds' community character and quality of life 4. Develop and maintain a transportation and infrastructure system to meet current and future demand 5. Provide responsible, accountable, and responsive government Each strategic objective is further subdivided into 88 specific action items to achieve implementation. Strategic Objective 1, as mentioned above, is most directly involved with economic development through a series of action items related to general economic sustainability, marketing of business districts, promotion of business development, business outreach and development and a series of land use standards and design guidelines intended to foster investment and appropriately scaled redevelopment. However, additional action items (for a total of 22) related to economic development can be found throughout the SAP, illustrating the importance of economic development in the City's strategic direction. As mentioned above, the SAP spans action items that can be worked on immediately to those that may take many years. Nevertheless, it is incumbent on all participants to begin the process of implementation. Implementation is scheduled to begin in 2015 pursuant to a Council -approved implementation plan. Notwithstanding all the above, the SAP does not enshrine the totality of economic development activities to be pursued by the City and its partners. Strategic economic development initiatives, in response to the bulleted items stated earlier, will need to be pursued on an on -going basis. These initiatives will in many cases be complementary to action items identified in the SAP. Performance Measures Economic development is a tireless activity in pursuit of enhanced economic vitality that is often more influenced by exogenous economic factors than local actions. For this reason it is difficult to measure on a year-to-year basis the performance of the actions of a local agency and its partners on a community's economic health. Did an increase in business activity, home starts or jobs result from local programs, incentives and/or outreach or would those economic successes have arisen otherwise in a booming economy? Conversely, do lower sales, higher unemployment and a sagging construction sector reflect on unsuccessful local economic development programs or more respond to a regional, national or even global economic down -turn? 110 Economic Development Whether or not economic success or failure can be attributed to any local actions, it is insightful and informative to monitor the local economy's performance and to attempt to steer economic development strategies in response. To this end, one of the two most basic performance measures related to a local community's economic health is growth or decline in overall employment. What's more, in its adopted planning growth targets Snohomish County has allocated 2,269 new jobs to the City of Edmonds for the planning horizon of 2035. While job growth does not follow a straight line year over year, this 20-year planning target provides a good index to gauge annual job growth in Edmonds. Economic Development 111 O Strong and prominent educational infrastructure from public and private K-12 institutions to Edmonds Community College O International business community, offering diverse array of goods and services, both in Highway 99 "International District" and throughout the City O Strong social capital -And/ community pride O Gefttfafly-L1ow rates of unemployment and poverty Weaknesses O Limited retail trade area due to geographical constraints ,(waterfront l___a:__Puget Sound to the west, distance from 1-5) and prominence of major regional retail center in the Lynnwood area OState B&O tax structure implications on small business eornmunities O Potentially restrictive hand use and parking regulations in the business districts compared with other communities O Lack of large, regularly shaped parcels to accommodate redevelopment in — Multiple property owners and small lots commercial areas outside the downtown BC zone O Limited amusement/family entertainment establishments relative to surrounding communities. O Shortage of tourism infrastructure, such as full range of accommodations, public restrooms, way -finding signage, etc. Opportunities O Use-L+ocation and "character" scan leverage additional economic developments nurturing existing businesses for T �IUU/�tstia�e PP(eg growth and , expansion and °rd5o,,w, 4 A- recruitin g )ocally- t00%fbbcjaeFree I ownednew. complementary — unique businesses — i that seek those assets. our advantage. Ai E,existing and planned intermodal transit connections can leverage transit i itib aid futtire Edmonds Crossing multi modal station with transit - oriented development. O _Through enhanced connectivity opportunities exist to maximize the synergy and economic impact of the Edmonds Center for the Arts with the Downtown business community. of the Edmonds Center for the Arts. by developing the 4th A Arts Corridor, by linking it to Main Street shops and restaurant-s-. O The burgeoning arts community can leverage greater tourism, artisanal manufacturing and associated business. Formatted: Not Highlight Formatted: Not Highlight O .Continued growth in the emerging business sector of artisanal and — Formatted: Not Highlight craft producers, including microbreweries, distilleries, specialty foods, etc. O Levefag-e-Ttelecommunication/-technology assets to -can provide better service for existing_ business customers and attract new business. s for the city ' O Plan and improvements in around the business districts can enhance their attractiveness for investment and viability of commercial and mixed -use development. O Downtown and the Highway 99 corridor near the medical services node around Swedish -Edmonds offer opportunities for additional hospitality facilities. O Underdeveloped sites in the City's business districts (e.g., Westgate, Fiver Corners, Highway 99 corridor, etc.) offer opportunities for appropriate commercial and/or mixed -use redevelopment projects. Additional population density in business districts can add market demand for goods and services and employee base for new and growing businesses. O Travelers through Edmonds via the Washington State Ferry system offer potential for greater business activity. O t — Formatted: Bullets and Numbering Threats O—Retail "leakage" (i.e. loss of potential local sales activity to areas outside of the City of s)eenters in nearby cities-fo retaol/servoce sector business Competotmen from 'Lifestyle villagc-5 shopp'nq centers and new town O Wider variety and availability of housing options and more commercial space elsewhere E)Laek of design guidelines/ regUlatiOlIS tO pff)teet quality first floor commercial space 013us'ness recruiters from other cities targeting Edmonds businesses O Concerns over the Lack -of along -term fiscal sustainability of City of Edmonds services and infrastructure without additional significant business sector growth v'smon for sustaining or improving the Edmonds quality of life with projected revenues. O Increasing_ volumes of train traffic, with resulting increase in blockage of at -grade crossings, could threaten economic vitality of the waterfront community. B. Goals and Policies Goal: Foster a healthy business community that encourages — Formatted Table 1. appropriately scaled growth and investment that offers a wide range of goods and services, provides employment and enhances municipal revenueother econornic opportunities. Policies 1 a. Continually strive to offer an efficient, timely and predictable— Formatted Table regulatory environment within the framework of a Promote a results oriented permit and licensing process, whieh strong customer service approach. 1 b. Develop or maintain business recruitment programs, altd createincluding a tool box of possible incentives, to encourage retam' and other commercial a wide range of new business development, including retail, service, artisanal manufacturing and professional services sectors. 1 c. Foster business expansion and retention prog through existing and enhanced programs. 1 d. Prioritize purchasing from local businesses while balancing a concern for cost containment. that gives prioritizes doing business with loeally owi le. Promote local business through enhanced public awareness — Formatted Table campaigns, events, awards programs and other activities. business community, such as annual small business awards. 1 f. Promote emerging business sectors such as artisanal and craft producers, including microbreweries, distilleries, specialty foods, etc. +€g. Continue to partner with business leaders, organizations and — Formatted Table community members, such as the Port of Edmonds, Edmonds Chamber of Commerce, etc., to leverage business opportunities and to solicit and econornic development organizations, and address feedback .to enhance the business environment. 1 h. Leverage business opportunities related to travelers to/from Edmonds using the Washington State Ferry system. Goal: Revitalize and enhance the city's business districts, balancing the 2. needs for housing, commerce and employment development with neighborhood character, amenities and scale. redevelopment, preservation and the need for consun Policies 2a. Adopt land use policies, zoning, and design guidelines that are supportive of economic development, while recognizing neighborhood character, context and impacts. O-b-. Strengthen neighborhood business centers through commuit" planning and commercial revitalization, resulting i n ne "lations that willspur developn eillI Comment [DP1]: Essentially a repeat of 2c. 2f2b. Monitor and potentially rRevise parking requirements in business- Formatted Table districts, , to encourage business development, while reasonably accommodating parking demand. 2d2c. Pursue strategic planning efforts and/or develop land use regulations that will encourage viable, appropriately scaled commercial and mixed -use redevelopment of key properties in the City's business districts. Transit Oriented Development (T.O.D.) On the I 'arbor Square and "Old Safeway" 2de. Explore -Continue to foster and enhance the economic vitality of Downtown Edmonds, including retention and growth of existing businesses, attraction of new businesses, and promotion of appropriate in -fill redevelopment. Monitor and enhance the Edmonds Downtown Business Improvement District in its efforts to fund business promotion, marketing, improvement projects, beautification, etc. Districts/ Areas (special assessment districts) as a way to he4p shopping areas fund marketing and beautification in sustainable fashmon. 2e. Explore the potential of additional Business Improvement Districts in other commercial areas to help fund business promotion, marketing, improvement projects, beautification, etc., in a sustainable fashion. 2f. Promote enhanced connectivity between the Edmonds Center of the Arts and the Downtown business community to maximize synergy and economic impacts. 2gf. Continue to support an historic preservation program that works to identify and preserve historic architectural, archeological and cultural resources for future generations. This can include use of available incentives and the historic preservation building code to encourage property owners to register eligible historic buildings. 2-h2h. Work to identify and "brand" and promote distinct business districts; where there is a natural synergyidentity, such as the Highway 99 International District, Westgate, the Stevens Swedish Hospital Medical Corridor, and the 4,h Aventie Arts Corridorwaterfront, among others.- 2fi Create synergy for commercial businesses where possible, example, by a "retail core" area in the downtowit. 2j2i. Work with property owners, developers and investors to seek - - Formatted Table appropriate redevelopment in underdeveloped and/or emerging business districts, such as the Highway 99 medical services district, Five Corners, etc. Ensure that redevelopment in business districts p rovide a quality environment with characters walkability and amenities for patrons and residents to enjoy. Implement regulations and/or design guidelines that will ensure the development of quality retail and commercial space that can Physically accommodate a variety of future uses. 2k. Implement infrastructure and technology improvements around — Formatted Table business districts to provide enhanced service, retain and attract business. Goal Diversify and prow the City's economic make-up to reduce sales 3. leakage, attract spending from nearby communities, enhance local employment, and increase municipal tax base revenues a-n-d to revenues to support local services. Policies 3a. Identify under -represented business sectors and work with partners, property owners and/or developers to recruit new businesses that help fill under -met market demand. 3-Hb. Leverage technology assets, such as existing fiber connections, to support technology -based businesses and potentially to pursue new revenue streams. 3-e3d. Implemelit I'@gUlati011s and/or design guidelines that will ensur-e the development of quality retail and commercial space that c physically accommodate a variety of future users. 3del. Focus recruitment and "buy local" community marketing on consumer spending segments in which there is significant "leakage", and also a strong possibility of recapturing spending. 3e. Employ strategic marketing opportunities to attract consumer spending from beyond Edmonds. 3fe. Pursue available incentives to foster appropriate redevelopmentprivate and public grant or sponsorship funding for programit, where possible. 3g€. Encourage longer hours of business operation and/or more evening uses in the business districts to add options during "peak" hours of consumer spending. tourism.O-ej-. Expand totirism efforts to take advantage of regional trend-s-, such as nature Goal Support and enhance the community's quality of life for 4. residents, workers and visitors in order to sustain and attract business and investment, and enhance economic vitality. Strengthen the quality of life and vitality of the community residents, workers and visitors to enjW. Policies Comment [13132]: Adding new tourism -related goal and policies at 5 - - f Formatted Table 4a. In concert with the Housing Element's Goals and Policies, pursue— Formatted Table &-a housing strategy that seeks to accommodate a wide variety of housing options, both in design and affordability, to meet the demands of the full range of the working population, retirees, students, artists, et al. around the MI Comment [DP3]: This is squarely an issue to be addressed in the Land Use element Provide 'eadership on technology issues On order to ensure th-a Edmonds sod nts and business fast, a ffo � �i _ COmment[DP4]:Addressedat3b. 4-e-.4b, Foster an open and accepting community culture that respe— Formatted Table diversitq Recognizing the value of a progressive community in retaining and attracting business, continue to foster an open and accepting community culture that respects diversity. 4f4c. Expand --Support and enhance social, cultural, artistic, recreational and other learning activities for residents, workers and visitors. . 4dg. . Pursue efforts to communicate with the public about the value of economic vitality in sustaining the City's quality of life, services and amenities. Goal Expand and enhance the tourism sector to attract outside 5. spending to help fuel the local economy. Policies 5a. Continue to support existing, and provide support to new, events and festivals that attract visitors. 5b. Continue to support and enhance the arts/culture sector and the— Formatted Table visitors that arts/culture events and activities attract. 5c. Support and enhance sporting, nature, and other outdoor events and activities that attract visitors. 5d. Strategically employ marketing media and resources to attract— Formatted Table visitors. An overall marketing strategy should include a variety of traditional marketing, online marketing, earned media presence and use of social media. 5e. Market Edmonds as a year-round destination for its waterfront location, historic downtown, arts community and venues, eating and drinking establishments, international shopping and dining, natural amenities. Darks and recreational assets. etc. 5f. Support the tourism infrastructure, including visitor amenities such as public restrooms, the visitors center, way -finding signaae, enhanced waterfront accessibility etc. 55 . Support efforts to enhance the hospitality infrastructure, including potential for an increased number and/or wider range of lodging establishments Downtown, in the medical services district on Highway 99, and/or in other business districts. m City of Edmonds Economic Development Element Of E DAf L � �12c. 1890 Adopted December 19, 2006 Edmonds Economic Development Comprehensive Plan Element The purpose of the Economic Development Element is to state the city's economic development policies clearly in one place, thereby guiding local policymakers and informing the public about issues relating to the local economy. The chapter is divided three major sections: Introduction and Approaches to Economic Development, The Edmonds Economy, and Economic Development Goals and Policies. I. Introduction and Approaches to Economic Development A. Why do economic development? Economic development in Edmonds can be defined as "the city's policies and services for growing the local economy in order to enhance the quality of life". Economic development is essential to preserving the existing level of service and attaining long-range goals for sustainable growth and community vitality. In general, economic development affects the local economy by broadening and strengthening the local tax base and by providing meaningful employment and entrepreneurial opportunities. An increasing number of communities around the region have economic development policies and staff. Community economic development priorities vary widely, but may include: creating affordable housing, adding employment, downtown or commercial revitalization, small business assistance, business recruitment and site selection help, community marketing, historic preservation, tourism generation, public relations, streamlining permit processes, and special development or streetscape projects (including public art). Communities are realizing that there is no such thing as a "static" or fixed economy; local economies are always changing. They are also impacted by countless forces: national and state economic cycles, competition from surrounding cities for desirable businesses, local and regional land use changes, residential and commercial real estate market trends, and other forces. Without change and adaptability, a community can become stagnant or even decline. Successful communities today acknowledge their past and allow a vision for the future to guide them through the changes needed to prosper. B. Past economic development efforts and local stakeholders The Edmonds Alliance for Economic Development was formed in 1995 as a coalition of businesspeople and property owners to promote the city and recruit businesses. It undertook analysis, strategic planning, and projects through 2004. In 1996, the City of Edmonds, the Port of Edmonds, and the Greater Edmonds Chamber of Commerce crafted the "Edmonds Economic Development Strategic Action Plan", which was adopted by reference. This element updates and replaces that work. The city's economic development efforts continued to focus primarily on the downtown, and in 1999, downtown economic development specialists Hyett-Palma were selected for a downtown study. The study, Edmonds Downtown Economic Enhancement Strategy - 1999, outlined several strategies for dealing with economic development in downtown Edmonds. They noted that the future of downtown Edmonds should not be "boiled down to an either or decision", but instead Hyett-Palma identified the challenge for downtown as follows: "Keep Downtown "the same" — by maintaining its charm, quaintness, and small town ambiance — while at the same time managing change in a way that allows Edmonds to take advantage of economic opportunities that will benefit the community. "' They concluded that avoiding change will, in fact, not keep downtown "the same". That will only result in a downtown that will not stay the same or flourish to be more attractive! They also identified several recommended actions, such as: • Reserving the first floor, by city zoning ordinance, in a downtown core specialty cluster for retail; • Developing a large number of housing units in the downtown through mixed -use developments; • Adding design guidelines; • Helping existing businesses to expand and open additional ventures; and • Ensuring that aesthetics add to the downtown ambiance through high quality public and private signage, art and streetscape elements. Hyett Palma. Edmonds Downtown Economic Enhancement Strategy. P. 11 2 Hyett Palma. Edmonds Downtown Economic Enhancement Strategy. P. 12 2 Many of the Hyett Palma conclusions resurfaced during a 2004-2005 Downtown Plan Comprehensive Plan Update, for which additional study was completed by Heartland LLC and by Mark Hinshaw at LMN Architects. In 2004, the City also added the first Economic Development Director on staff under the Mayor. This position works in close collaboration with local and regional economic development stakeholders. Prior to the development of the Economic Development Element, initial staff priorities were set involving: business recruitment and retention, tourism development, creating a more business -friendly regulatory environment, and addressing barriers to development in business districts around the entire city. This Economic Development Element will provide further guidance for staff and council on economic development priorities. C. Current national thinking in economic development Across the country, many past economic development efforts focused either on providing major tax breaks to entice large corporations or on government provision of significant infrastructure projects geared towards assisting industry. Today's general outlook on economic development recommends a more balanced approach with an emphasis on long-term planning for a vital, sustainable community. Support locally -owned businesses States and municipalities are increasingly establishing policies to bolster smaller, locally -owned businesses. Economic development expert Michael Shuman, an economist and attorney, focuses on creating self-reliant communities. In his book "Going Local", Shuman highlights ways in which municipalities can bolster locally -owned companies and increase local spending. Recent research has begun to highlight the positive "multiplier effect" associated with prioritizing the growth of local companies. The multiplier effect describes how the expenditure of a dollar generates more than a dollar of activity. A worker who receives a check might spend a portion of it at a local restaurant or shop, thereby resulting in more transactions within that community. The local multiplier effect stops when the transaction leaves the local community. Shuman writes, "The primary virtue of import substitution, community corporations, and local investment is that these strategies increase the likelihood of the economic multiplier's staying at home."' s Shuman, Michael. Going Local. P. 50 3 While it is impossible today to substitute many of our "imports" locally, many improvements are achievable. Some examples of common practices in line with this school of thought include procurement policies that favor local companies (if within a range of price competitiveness) and "shop local" programs. Create vibrant places Another movement in economic development has produced a shift towards creating vibrant places where today's workforce will want to live, as documented by public policy and economic development expert Richard Florida. Florida's research demonstrates how today's "creative class" of workers choose location first, and employment second. In this line of thinking, corporations are increasingly forced to locate to where the desirable, educated workforce resides, not necessarily whichever locale offers the largest tax break. In the following segment, Florida describes what today's workforce seeks in a place to live. "What's there: the combination of the built environment and the natural environment; a proper setting for pursuit of creative lives Who's there: the diverse kinds of people, interacting and providing cues that anyone can plug into and make life in that community What's going on: the vibrancy of the street life, cafe culture, arts, music, and people engaging in outdoor activities - altogether a lot of active, exciting creative endeavors"' 4 Florida, Richard. The Rise of the Creative Class, p.232 4 Consequently, municipalities and regions engaged in economic development must think about nurturing environments for businesses and people in order to grow a local economy. II. The Edmonds Economy A. Analysis of local economy A good understanding of the local economy helps a community to effectively guide policies, investments, staff resources, and future plans. The analysis completed for the Economic Development Element offers a background on local business characteristics and a summary of city revenues. Local business characteristics Edmonds is home primarily to a small business economy. In 2005, City records counted 1,791 licensed businesses located in Edmonds. Claritas consumer research, which provides detailed information not collected locally, recorded 1,526 businesses. Some summary employment statistics are listed below. Table 1: Median # of employees: 3 Average # of employees: 8 Total employees: 12,693 Source: Claritas While most Edmonds businesses employ a small number of workers, larger local employers include Stevens Hospital, the Edmonds School District, and the City of Edmonds. Stevens Hospital, with 217 beds and 888 full-time employees, serves as an anchor to the greater health care industry in Edmonds. In 2005, there were 209 related health care and social assistance businesses. Edmonds is also home to a large number of retail and professional service businesses, ranging from small shops and restaurants to nationally -known architectural, engineering and technical firms. Table 2 shows the number of Edmonds businesses by NAIC code. 5 Table: 2 Number of Businesses in Edmonds by NAIC Code in 2005 NAIC Business Description Code Count Retail 44-45 231 Professional, Scientific, and Technical Services 54 229 Health Care and Social Assistance 62 209 Other Services (except Public Administration) 81 172 Construction 23 114 Finance & Insurance 52 107 Accommodation and Food Services 72 102 Real Estate & Rental Leasing 53 72 Administrative, Support & Waste Management & Remediation Svs 56 58 Wholesale Trade 42 53 Educational Services 61 41 Manufacturing 31-33 33 Arts, Entertainment, and Recreation 71 29 Public Administration 92 21 Transportation and Warehousing 48-49 18 Information 51 18 Utilities 22 2 Agriculture, Forestry, Fishing and Hunting 11 2 NAICs Total 1,511 All businesses in Edmonds 1,526 *15 businesses were non -classifiable Source: Claritas North American Industry Classification System (NAICS) replaced the U.S. Standard Industrial Classification (SIC) system. Edmonds is also home to many businesses in fields that are experiencing dramatic growth in self-employment across the nation. Nationally, the number of businesses with no paid employees grew from 17.6 million in 2002 to more than 18.6 million in 2003, a growth rate of 5.7 percent, according to a report issued by the U.S. Census Bureau. This represents the biggest rate of increase in self-employment since the Census Bureau began releasing such statistics in 1997. If Edmonds is indeed experiencing the same trend locally, it may be part of the reason why Edmonds has a relatively high percent of workers who live and work within Edmonds. According to the 2000 Census, 18.5% of Edmonds' working population chose to live and work in Edmonds. Comparatively, that figure was only 10.8% for Lake Forest Park, 15.1 % for Mukilteo, 9% for Mountlake Terrace and 1 2.8% for Mill Creek. Perhaps due to its large amount of commercially zoned land and therefore number of businesses, 23.4% of Lynwood's workers worked and lived within the city. N. New business development in Edmonds will likely continue to be dominated by small businesses and self-employed persons, unless significant land use changes are made to encourage the development of larger office buildings or other commercial uses. Geographically, employment is currently spread throughout the city's downtown, neighborhood business districts and along Highway 99. City of Edmonds Geographic Employment Patterns July, 2005 Employment 0260 1* 130 f 26 Source: Claritas data 7 City revenues & sustainability Each year, budget season arrives and usually some difficult choices are made about what to fund and what to cut. Throughout the year, land use decisions are also made, according to staff reports, regulations, public testimony, and other factors. Rarely do we stop to consider the bigger picture: the linkage between each year's budgetary constraints and the ongoing land use decisions. This connection affects the revenues generated, the services the city is able to offer, and the quality of life enjoyed by residents and businesses. Revenues Services Quality of Life Edmonds is heavily reliant on taxes as a source of General Fund income. In 2005, roughly 73% of General Fund revenues were generated from three tax sources: property, sales, and utility. While this dependence on taxes is not new, one percent property tax limitations on local governments have acted as a major fiscal drain in largely residential communities such as Edmonds. In conformity with 1-747, Edmonds is limited to a one percent annual property tax increase. Prior to 1-747, property taxes could rise up to six percent annually. This has led Edmonds and many other municipalities to pursue economic development agendas to diversify their revenue base, including but not limited to increasing sales taxes. The city receives sales tax from two main sources: the sale of consumer goods and construction materials. Sales tax revenues vary from city to city, depending on commercial development patterns, construction activity and other factors. In Bothell, for example, sales tax is the city's largest revenue source. In Lynnwood, it accounts for 46% of general fund revenues. In Edmonds, it accounts for roughly 19.3 % of the General Fund. A table with sample cities and their sales tax revenues is listed E3 below. The per capita sales tax generated is also included, although a more detailed analysis would need to be done to determine how much of the sales tax revenue is generated by local residents versus visitors. Table 3: Selected Mid -Size and Small Cities 2005 Population Sales Taxes Shoreline 52,740 $ 6,016,940 Per Capita $ 114 Kirkland 45,800 $ 14,309,796 $ 312 Edmonds 39,620 $ 4,746,814 $ 120 Lynnwood 34,540 $ 17,419,531 $ 504 Bothell 30,930 $ 8,885,688 $ 287 Mountlake Terrace 20,390 $ 1,360,097 $ 67 Mukilteo 19,220 Arlington 14,700 Snohomish 8,585 Port Townsend 8,535 Source: WA State Dept. of Revenue $ 1,814,520 $ 94 $ 3,683,440 $ 251 $ 2,383,186 $ 278 $ 1,591,514 $ 186 It is simple to state the goal of increasing sales tax revenues, but somewhat more complex when determining how to implement that goal. Many cities have focused on development because of its positive impact on sales and property taxes. Quality development/ redevelopment increases: • Property values, resulting in additional property tax revenues. • Construction activity, which subsequently adds sales tax revenues. • The number of utility customers, resulting in higher consumption and additional utility tax revenues.' Because Edmonds is largely built out, emphasis in the business districts should be on redevelopment, where appropriate. This does not imply a need for "wholesale" redevelopment of entire districts, but rather an emphasis on realizing growth around important but limited opportunities, such as the Harbor Square and Edmonds Shopping Center areas. On a smaller scale, the recent closure of a gas station at 511 Avenue South and Dayton Street presents an opportunity to close the gap between neighboring uses and encourage pedestrian linkages. Moreover, increased mixed -use development would also benefit the city because "more density equals more customers", as Hyett Palma pointed out in ,999.6 ' City of Bothell budget revenue narrative 6 Hyett Palma. Edmonds Downtown Economic Enhancement Strategy. P. 16 9 The strategy of encouraging redevelopment in all of the business districts falls in line with the geographic distribution of business revenues around the city. Downtown, successful restaurants and retailers occupy many of the ground level commercial units. In the neighborhood business districts, grocery stores, drug stores and convenience retail dominate. On Highway 99, larger "box" retailers, car dealerships, and restaurants bring in substantial revenues. It is important to recognize the significance of the city's boundaries and commercial districts in and directly adjacent to the city. In the past, Edmonds was given the opportunity to annex large neighboring commercial areas such as the Aurora Village and James Village shopping center developments. In hindsight, this would have been a wise decision from a revenue perspective. While a recent annexation effort in the Esperence section of Snohomish County failed, there may be property owners interested in annexing by petition, such as along Highway 99. This would increase continuity to an important commercial area with complex municipal boundaries. Another consideration pertaining to sales tax generation involves the level of "leakage" in consumer spending, or in other words, what local residents purchase outside of Edmonds. As part of the Berk & Associates consultant study performed for the Highway 99 Task Force in 2004, consumer spending in the collective trade area of Edmonds and Mountlake Terrace was analyzed. They found that residents in the Edmonds and Mountlake Terrace areas combined spend roughly $550 million in other cities each year on retail items (all retail, excluding autos and groceries). While consumer spending patterns are influenced by national economic trends, local municipalities can nonetheless work to address compatible areas of spending leakage. A 1999 survey conducted by Hyett Palma of primary trade area residents found that people chose to come downtown primarily for eating in the restaurants and shopping. The needs of special consumption categories such as these should help guide corresponding recruitment and land use policies in order to maximize the effectiveness of efforts to recapture local spending dollars. For example, design guidelines should ensure that first floor commercial units in the downtown and throughout the city are able to physically accommodate restaurant and retail uses. Parking regulations can further "make or break" a retail and dining district. 7 Edmonds Highway 99 Enhancements Market Assessment, 10-04, page vi 10 In 1999, only 5% of the consumer survey respondents reported to come downtown for entertainment'. However, a modest "nightlife" might help attract young professionals, a conclusion drawn by Hyett Palma as well. The arts have a vital role to play; evening "artwalks" and performing arts events are significant draws. Creating business districts with activity into the evening can add a critical mass of potential consumers during the time of the day when Americans spend most of their money. In turn, this might encourage local retailers to stay open later. B. Important regional trends A major regional economic development agenda has been developed by collaboration through the Puget Sound Regional Council. "The Prosperity Partnership" identifies strengths and weaknesses in the Puget Sound economy, and calls for specific "foundation initiatives": education, technology commercialization, new and small business support, social capital and quality of life, tax structure, and transportation. Edmonds staff and council members have attended meetings of "The Prosperity Partnership", as Edmonds residents and businesses could clearly benefit from progress in several of these foundation initiatives. While regional efforts continue, many cities around the region are undertaking ambitious economic development projects, from new town centers to transit oriented developments (TOD). These projects typically contain a mix of retail, office and residential uses. For example, Kent Station is a 470,000 square foot retail, entertainment, education, office, and residential project located along the Sounder commuter rail line. The City of Kent had an active role in the development of this project by purchasing property, implementing necessary zoning and land use changes, and soliciting developers. 8 Hyett Palma. Edmonds Downtown Economic Enhancement Strategy. 11 C. Developments in neighboring cities Nearby, several major developments will likely affect the Edmonds economy by providing additional consumer options and more competition for businesses. In addition to the actual amenities offered at these locations, sophisticated "branding" and marketing campaigns accompany many of today's center developments. In 2005, Lynnwood's Alderwood Mall added a "lifestyle village", an outdoor shopping area that features upscale stores and dining options. The streetscape setting mimics older, authentic downtowns, such as Edmonds, and represents a widespread trend in mall development today. Lynnwood is also planning to take on significant additional density, and has a 20-year plan for a City Center. Buildings in the entire City Center area would house retail businesses, offices and homes, with heights up to 26 stories or 350 feet. Most of the property is privately held. The city will buy the land for the parks and a promenade, and then allow the zoning and market forces to drive development. Just south of Edmonds, the Aurora Corridor Project is the City of Shoreline's plan to redesign and redevelop the three miles of Aurora Avenue North (State Route 99) that run through Shoreline. The goal of the plan is to improve pedestrian and vehicle safety, pedestrian and disabled access, vehicular capacity, traffic flow, transit speed and reliability, nighttime visibility and safety, storm water quality, economic investment potential and streetscape amenities. While in an immediate sense, it may result in the dislocation of some businesses, in the long term it will likely result in more center -oriented development and the aggregation of small parcels. While not immediately adjacent to Edmonds, the Mill Creek Town Center has proved to be a significant draw to businesses and consumers from the Edmonds area. The Mill Creek Town Center Plan was initiated by the City in 1993 to implement the City's Comprehensive Plan for a new mixed -use center in the City's central core area. The Town Center provides for multi -storied buildings, strategically placed pedestrian plazas and parking facilities organized around a new street pattern that provides connections to adjacent neighborhoods and the existing commercial core. Today, several hundred thousand feet of retail and office space have been constructed, with anchor tenants such as Central Market and the University Book Store. 12 III. Economic Development Goals and Policies A. Edmonds' current strengths, weaknesses and opportunities (SWOT) relating to economic development In preparation of considering the goals and policies for economic development in Edmonds, a SWOT analysis was used as a planning tool to provide direction. Strengths O Picturesque waterfront community O Identifiable neighborhoods and business centers O Mass transit O Downtown specialty retailers and food establishments O Events and festivals O Historic buildings O Reputation as an arts community O Stevens Hospital O International business community O Strong social capital/ community pride O Generally low rates of unemployment and poverty Weaknesses O Limited trade area due to waterfront location O State B&O tax structure implications on small business communities O Land use and parking regulations in the business districts O Multiple property owners and small lots in commercial areas outside the downtown BC zone Opportunities O Use location and "character" to leverage additional economic development, nurturing and recruiting locally -owned, unique businesses to enhance our advantage. O Build on the existing transit hub and future Edmonds Crossing multi - modal station with transit -oriented development. 13 O Maximize the impact of the Edmonds Center for the Arts by developing the 4th Avenue Arts Corridor, by linking it to Main Street shops and restaurants. O Leverage telecommunication/ technology assets to provide better service for customers and new revenue sources for the city. O Plan and implement improvements in regulation around the business districts. Threats O Lifestyle villages and new town centers in nearby cities O Wider variety of housing options and more commercial space elsewhere O Lack of design guidelines/ regulations to protect quality first floor commercial space O Business recruiters from other cities targeting Edmonds businesses. O Lack of a long-term vision for sustaining or improving the Edmonds quality of life with projected revenues. B. Goals and Policies Goal: Foster a healthy business community that provides employment 1 . and other economic opportunities. Policies 1 a. Promote a results -oriented permit and licensing process, which consolidates review timelines, eliminates unnecessary steps, and maintains a strong customer service approach. 1 b. Develop or maintain business recruitment programs, and create a tool box of incentives to encourage retail and other commercial development. 1 c. Encourage and expand business expansion and retention programs. 1 d. Develop a local purchasing policy that gives prioritizes doing business with locally -owned companies, if within a range of price competitiveness. 1 e. Consider public relations tools to increase awareness of the local business community, such as annual small business awards. 14 I f. Continue to partner with business and economic development organizations, and address feedback from the business community. Goal: Revitalize the city's business districts, balancing redevelopment, 2. preservation and the need for consumer amenities. Policies 2a. Adopt land use policies, zoning, and design guidelines that are supportive of responsible economic development. 2b. Strengthen neighborhood business centers through community planning and commercial revitalization, resulting in new regulations that will spur development. 2c. Revise parking requirements, especially downtown, to encourage business development. 2d. Develop land use regulations that will encourage Transit Oriented Development (T.O.D.) in the Harbor Square and "Old Safeway" area. 2e. Explore options such as Business Improvement Districts/ Areas (special assessment districts) as a way to help shopping areas fund marketing and beautification in a sustainable fashion. 2f. Continue to support an historic preservation program that works to identify and preserve historic architectural, archeological and cultural resources for future generations. 2g. Utilize incentives and the historic preservation building code to encourage property owners to register eligible historic buildings. 2h. Work to identify and "brand" distinct business districts, where there is a natural synergy, such as the Highway 99 International District, the Stevens Hospital Medical Corridor, and the 411 Avenue Arts Corridor. 2i. Create synergy for commercial businesses where possible, for example, by implementing a "retail core" area in the downtown. 2j. Provide a quality environment with character for patrons and residents to enjoy. 15 Goal Diversify the tax base and increase revenues to support local 3. services. Policies 3a. Address barriers to redevelopment in the business districts, and encourage mixed -use development. 3b. Leverage technology assets, such as existing fiber connections, to pursue new revenue streams. 3c. Implement regulations and/or design guidelines that will ensure the development of quality retail and commercial space that can physically accommodate a variety of future users. 3d. Focus recruitment and "buy local" community marketing on consumer spending segments in which there is significant "leakage", and also a strong possibility of recapturing spending. 3e. Pursue private and public grant or sponsorship funding for programs, where possible. 3f. Encourage longer hours of business operation and/or more evening uses in the business districts to add options during "peak" hours of consumer spending. 3g. Expand tourism efforts to take advantage of regional trends, such as nature tourism. Goal Strengthen the quality of life and vitality of the community for 4. residents, workers and visitors to enjoy. Policies 4a. Develop a housing strategy that plans for a variety of housing options, both in design and affordability, around the city. Consider housing options for artists. 4b. Promote the visitor/tourism sector. Sustain and develop facilities that attract tourists, conferences, professional training, sporting events and other recreational opportunities. 16 4c. Consider building incentives that may encourage environmentally -friendly construction (or LEED certified), a percent set -aside for the arts, public spaces, and affordable housing. 4d. Provide leadership on technology issues in order to ensure that Edmonds residents and businesses have fast, affordable service. 4e. Foster an open and accepting community culture that respects diversity. 4f. Expand social, cultural, artistic, recreational and other learning activities for all generations. 4g. Strive to improve communications with the public. 17 C. Implementation The policies in this document were constructed to provide a supportive foundation for future economic development projects, legislation and decisions. Implementing the city's policies will require cooperative involvement on the part of the City Council, Mayor, commissions and boards, committees, and staff. In the past, several studies have recommended a number of strategies for implementation, and yet few of these recommendations have actually been realized. At the same time, the city's long term financial outlook has only worsened. It is therefore imperative that real progress be made in setting the course for economic development in Edmonds. Phased implementation could be achieved through a series of legislative actions and ongoing administrative services. Legislative The City Council ultimately decides on many land use and other regulations that greatly affect the ability for economic development to take place. As the policy -making body, the City Council must also act in the best interest for Edmonds residents and businesses today - and far into the future. This involves balancing immediate community feedback, the results of expert studies, staff recommendations, and the need for long term vision and planning for Edmonds' future financial picture and quality of life. In the spring of 2006, the City Council formed an Economic Development Committee, which acts as the liaison between the City Council and the Economic Development Director. The Committee works to ensure that the Council as a whole has a deeper understanding of the economic development issues facing the City. As described in this Economic Development Element, a great deal of economic development involves "setting the stage" for economic growth to occur in a way that will enhance the community. Currently, a number of studies and community planning efforts are either underway or were recently completed that recommend revisions to various zoning regulations. Below are the short term implementation action items for the City Council. • Adopt design guidelines that ensure quality commercial space; • Resolve downtown zoning and height regulations consistent with an expressed vision, In • Approve recommended reforms stemming from the work of the Highway 99 Task Force; • Study and approve updated Comprehensive Plan language and zoning regulations for the neighborhood business districts; • Study and adopt a package of incentives for use in business recruitment and retention efforts; and • Adopt a local purchasing policy, setting a priority for doing business with local companies, if within a specified range of price competitiveness. Services While staffing at the City of Edmonds has been streamlined significantly due to budgetary constraints in recent years, the city also recognizes that economic development contributes positively to the revenue outlook, local employment, and the quality of life for residents. The city should provide adequate resources for the following services to implement economic development in Edmonds: • Long-range planning for commercial areas • Site selection assistance and business recruitment • Community marketing • Business expansion and retention efforts • Public relations involving economic development • Data collection and analysis In cooperation with the city, the Greater Edmonds Chamber of Commerce is also involved in economic development through a special subcommittee and the many festivals and business networking services that contribute positively to the local economy. Where relevant, the City of Edmonds should work in collaboration with the Greater Edmonds Chamber of Commerce and other business groups, local economic development stakeholders, and regional alliances to further the economic development policies outlined in this Economic Development Element. 19 CITY OF EDMONDS ECONOMIC DEVELOPMENT COMMISSION December 17, 2014 The Citizens Economic Development Committee meeting was called to order at 6:02 p.m. by Chair Witenberg in the Brackett Room, 121 5th Avenue North, Edmonds. COMMISSIONERS PRESENT Bruce Witenberg, Chair Kevin Garrett, Vice Chair Jenny Antilla Nicole Hughes Jamie Reece John Rubenkonig Michael Schindler Rich Senderoff Douglas Swartz Teresa Wippel COMMISSIONERS ABSENT John Dewhirst Darrol Haug Roger Hertrich Debbie Matteson Doug Purcell Darlene Stern 1. OPENING REMARKS PLANNING BOARD LIAISON Phil Lovell ELECTED OFFICIALS PRESENT Councilmember Kristiana Johnson PORT OF EDMONDS LIAISON David Preston STAFF PRESENT Patrick Doherty, Econ. Dev & Comm. Serv. Dir. Cindi Cruz, Program Coordinator Rob Chave, Planning Manager Jeannie Dines, Recorder PUBLIC PRESENT Jeff Sherrer Chair Witenberg introduced new Commissioner Jenny Antilla and she described her background and interest in the EDC. Chair Witenberg announced Commissioners Dewhirst, Matteson and Stern have excused absences. 2. AMENDMENTS TO AGENDA - NONE 3. APPROVAL OF ECONOMIC DEVELOPMENT COMMISSION MINUTES OF NOVEMBER 19, 2014 COMMISSIONER SCHINDLER MOVED, SECONDED BY COMMISSIONER REECE, TO APPROVE THE MINUTES OF NOVEMBER 19, 2014. MOTION CARRIED UNANIMOUSLY. 4. STATUS OF COMPREHENSIVE PLAN UPDATE, DEVELOPMENT CODE UPDATE AND CIP/CFP Draft Minutes Economic Development Commission December 17, 2014 Page 1 Planning Manager Rob Chave Council reported the Council approved the Capital Facilities Plan/Capital Improvement Program and the 2015 budget at last night's meeting. Of note to the EDC, the Council authorized $100,000 to match funds they are requesting from the legislature for an alternatives analysis of ferry/emergency conflicts. The Council also included $100,000 in the budget for a Planned Action on Highway 99 which would fund planning work and ultimately environmental review of land use and transportation improvements on Highway 99. That effort, coupled with recent changes the Council made to encourage more housing on Highway 99, will position Edmonds to capture development occurring in the region. The Council also authorized an $110,000 contract with a team of consultants led by Makers to work on the development code update during 2015. The code update is a multiyear project; the City Council will consider providing additional funds at the end of the year to complete the code update. The consultants have already begun work. Mr. Chave reported the Planning Board is currently reviewing the Land Use and Utility elements. The City Council is reviewing the Housing Element followed by the Land Use and Utilities Elements and is holding hearings on each element. Chair Witenberg reported the City Council left downtown restrooms in the CFP but did not appropriate any funds in 2015 for temporary downtown restrooms. 5. DISCUSSION AND FEEDBACK ON THE DRAFT GOALS AND POLICIES OF THE ECONOMIC DEVELOPMENT ELEMENT OF THE COMPREHENSIVE PLAN Economic Development and Community Service Director Patrick Doherty explained the previous Economic Development Plan has not been updated since it was adopted in December 2006. The deadline for updating the entire Comprehensive Plan is June 2015. Due to the constrained timeline, staff is revising elements rather than starting over. The Economic Development Element is a policy document, the background for the regulatory framework. Mr. Doherty recalled the EDC agreed the Business Enhancement Subgroup would provide initial revisions to the goals and policies. The draft provided to the EDC includes his and the subgroup's proposed revisions as well as additional input from Commissioner Senderoff. Following tonight's meeting he will prepare the entire element which includes the goals and policies as well as the narrative and implementation. The element will be presented to the Planning Board for review and public comment at their January 28 meeting. Commissioners can comment on the Economic Development Element as individuals to the Planning Board. Commissioners reviewed the goals and policies and provided the following suggestions/comments: • Add fiber optics in Strengths • Add shortage of tourist facilities/lack of infrastructure to support tourism (accommodations, restrooms, wayfinding) to Weakness • List of Weaknesses is short, there may be additional items in the narrative • Add specialty retail and restaurants to International Business Community in Strengths to indicate why it is a strength and identify concentration on Highway 99 • Determine whether to use intermodal or multimodal throughout document • Add free parking to Strengths • Add "recognized" to events and festivals under Strengths • Add electric car charging station to Strengths • Concern the wording of some opportunities are policy language versus action • Add opportunities on Highway 99 such as big properties, good visibility due to traffic volume, transit Draft Minutes Economic Development Commission December 17, 2014 Page 2 • Add opportunities provided by ferry traffic on SR 104 to Opportunities • Add glossary of terms • Add Port of Edmonds as partner in economic development to Strengths • Add policy recognize Port's role in economic development • Add accessible public waterfront and pedestrian connections to Strengths • Add waterfront amenities to Strengths • Add continue to make waterfront more accessible as a goal • Identify business districts in narrative • Add parks to Strengths • Add Dive Park to Strengths • Consider whether to include 4th Avenue Corridor in Policy 2f • Expand language in Policy 5g • Reword Goal 4 • Add quality of life to Strengths • Consider referencing impeded access to waterfront from increase in train traffic in SWAT analysis • Rephrase 4e to address economic development • Add to Policy 2c accommodating a wide range of housing options to enhance use of commercial • Add flowers as a Strength • Include parks and recreational facilities in 5f Commissioners and staff discussed signage on SR 104 for restaurants near the ferry holding lanes, services provided by fiber optics versus cable, Comprehensive Plan as a vision with broad categories, concern with use of the word "appropriate" in the document, whether 4th Avenue Corridor is a business district, and revisions that have been made to B&B regulations. Mr. Doherty reported Salish Crossing has signed leases with Top Pot Donuts and Spud Fish & Chips. Top Pot plans to use a mobile app to take orders. 6. TOURISM AND VISITOR SUB GROUP UPDATE Commissioner Garrett reported the subgroup discussed downtown restrooms and the position paper approved by the EDC. Commissioner Dewhirst made a presentation regarding downtown restrooms to a downtown group who was very supportive. The City's tourism website has been launched; during the first quarter of 2015, consideration will be given to other opportunities for providing information about the City to people visiting the region. The subgroup also brainstormed 2015 projects/efforts. The subgroup meets every other month; their next meeting will be in February. 7. BRAINSTORM IDEAS TO CONSIDER FOR 2015 Commissioners' brainstorming identified the following ideas: • Leakage: survey current business types and needs, target businesses to recruit (UW study regarding Westgate had a list of community needs) • Identify physical areas/business districts that would promote economic development • Encourage small pharmacy, Doc in a Box • Strategies for engaging businesses on Highway 99, particularly International District businesses • Business -oriented website for recruitment and investment • Analyze how waterfront businesses can be enhanced • Food trucks — waterfront, Yost Park, City Park • Downtown gathering place Draft Minutes Economic Development Commission December 17, 2014 Page 3 • Village green on 4th Avenue at Dayton to anchor the south end of the 4th Avenue Corridor • Targeted code amendments • UW Green Futures Lab study on Five Corners • Advocate for a boutique hotel downtown and other lodging facilities particularly near the hospital • Enhanced effort on liaison program • Review 25 items in SAP related to economic development and consider how to move them forward • Capture ferry traffic tourism • Talk with WSF about ferry reservation system • Explore increasing the number of gas stations in the City to increase gas tax It was agreed to review the ideas at the next meeting and determine which subgroup would pursue them. 8. COUNCIL LIAISONS' COMMENTS Councilmember Johnson reported on Council activity: • Adopted CIP/CFP and 2015 budget o Council allocated $100,000 for matching funds for an alternatives study o Council allocated $100,000 for Highway 99 planning • Adopted Legislative Agenda for 2015 which includes $1.25 million for the alternatives analysis and $10 million to implement a Highway 99 Gateway project • Adopted Social Media policy • Reappointed Doug Swartz and appointed Jenny Antilla to the EDC • Agreed to move forward with a Diversity Commission. A task force is being formed to determine what the commission should address. • Approved the Edmonds Downtown Alliance's Work Plan and the LTAC's Work Plan • Added the Schumacher Building to the Edmonds Register of Historic Places • Received an update on the SAP • Completed review of the Shoreline Master Program • Presentation from PSRC regarding regional impacts of the proposed terminal at Cherry Point (Commissioner Rubenkonig left the meeting at 7:52 p.m.) 9. PLANNING BOARD UPDATE Planning Board Member Phil Lovell reported on Planning Board activities: • Reviewing Comprehensive Plan Elements, currently reviewing the Land Use and Utilities Elements. • Identified two Student Representatives; one will finish in 2014 and the second will start in 2015 • Extended agenda includes: o Economic Development Element (January) o Transportation and Cultural and Urban Design Elements (February) o Street Tree Plan and Streetscape Plan (March) o Transportation Element (March) o Capital Facilities Element (May) • Public hearing on entire Comprehensive Plan (June) • Elected Neil Tibbott as Chair and Phil Lovell as Vice Chair to. PORT OF EDMONDS UPDATE - None It. MISCELLANEOUS Draft Minutes Economic Development Commission December 17, 2014 Page 4 Chair Witenberg reported Councilmember Peterson will be leaving his Council position next month to represent District 21 in the State Legislature. He acknowledged Councilmember Peterson's contribution and his support of the EDC. He also thanked Commissioner Purcell for his service on the EDC including his contributions to the Business Enhancement Subgroup. 12. AUDIENCE COMMENTS Jeff Sherrer commented on the economic impact Edmonds Community College's large student population has on the City. He suggested partnering with Edmonds Community College on something that would draw students. He pointed out the Economic Development Element does not mention reaching beyond the City's borders such as a Sister City Program. 13. ADJOURN With no further business, the meeting was adjourned at 8:03 p.m. Draft Minutes Economic Development Commission December 17, 2014 Page 5 AI-7443 Planning Board Agenda Meeting Date: 01/28/2015 Administrative Reports: Review Extended Agenda Department: Initiated By: Planning Information Subject/Purpose Administrative Reports: Review Extended Agenda Staff Recommendation Please review the attached extended agenda Previous Board Action N/A Narrative Attachments PB Extended Agenda 9.