2015-02-23 Economic Development Commission MinutesCITY OF EDMONDS
ECONOMIC DEVELOPMENT COMMISSION
Special Meeting
February 23, 2015
The Citizens Economic Development Committee meeting was called to order at 6:00 p.m. by Chair
Schindler in the Brackett Room, 121 5th Avenue North, Edmonds.
COMMISSIONERS PRESENT
Michael Schindler, Chair
John Rubenkonig, Vice Chair
Jenny Anttila
John Dewhirst
Darrol Haug
Roger Hertrich (arrived 7:06 p.m.)
Debbie Matteson
Jamie Reece
Rich Senderoff
Darlene Stern
Douglas Swartz
Teresa Wippel
Bruce Witenberg
COMMISSIONERS ABSENT
PLANNING BOARD LIAISON
Phil Lovell
ELECTED OFFICIALS PRESENT
Councilmember Lora Petso
PORT OF EDMONDS LIAISON
Bruce Faires
STAFF PRESENT
Patrick Doherty, Econ. Dev & Comm. Serv. Dir.
Shane Hope, Development Services Director
Jeannie Dines, Recorder
PUBLIC PRESENT
Julaine Fleetwood Ron Wambolt
Kevin Garrett Stephen Clifton
Nicole Hughes
1. CALL TO ORDER AND ROLL CALL OF MEMBERS PRESENT
Chair Schindler advised Commissioners Garrett and Fleetwood have excused absences.
2. AMENDMENTS TO AGENDA
Chair Schindler requested the agenda be amended so that Item 15 followed Item 5.
3. APPROVAL OF EDC MINUTES
COMMISSIONER STERN MOVED, SECONDED BY COMMISSIONER MATTESON, TO
APPROVE THE MINUTES OF JANUARY 21, 2015. MOTION CARRIED UNANIMOUSLY.
(Commissioner Hertrich was not present for the vote.)
4. OPENING COMMENTS FROM CHAIR MIKE SCHINDLER
Approved Minutes
Economic Development Commission
February 23, 2015
Page 1
Chair Schindler relayed Julaine Fleetwood was appointed to the EDC by Council President Fraley-
Monillas. He thanked Commissioners Witenberg and Garrett for their foundational work over the past 18
months as Chair and Vice Chair. The EDC has 10 months to make it apparent to the City Council why the
EDC exists, what its purpose is and what it can offer the Council and the City. Subcommittees will be
providing pulse reports at each EDC meeting; he urged Commissioners to take their positions seriously
and put in the necessary hard work. In response to his inquiry, the Council liaisons have shared their
thoughts about the purpose of the EDC. He summarized the EDC has 10 months to give the Council a
reason to keep the EDC in place.
5. COMMENTS FROM CO-CHAIR JOHN RUBENKONIG
Vice Chair Rubenkonig thanked Commissioners for serving and encouraged them to present ideas; if their
voices are not heard, the opportunity provided by serving on the Commission is wasted. Commissioners
are also ambassadors to citizens; a way to bring information to the City. If Commissioners believe the
EDC should be extended beyond the sunset date, he encouraged them inform Councilmembers that the
EDC is worthwhile.
15. PORT OF EDMONDS UPDATE
Port Commissioner Bruce Faires reported the Channel Marker is moving to Harbor Square Building 2
(formerly occupied by the Mexican restaurant) and will open in March. They are making considerable
improvements, enlarging the space and have signed a long lease. Mike Echelbarger made a presentation
to the Port Commission regarding the plans for the old Safeway property; he encouraged the EDC to have
Mr. Echelbarger make a presentation as their plans have an economic impact.
Mr. Faires reported moorage at the Port is fully occupied; there are spaces available in dry storage. The
Port and the Executive Director are members of the Snohomish County Tourism Bureau. After the
legislature's decision several years ago to curtailed all funding for tourism promotion, a group developed
a proposal that is now in the form of House and Senate bills that would establish an organization funded
privately from all businesses in the State that are impacted by tourism; funds will be prioritized and spent
by the private organization and are outside the control of the legislature. Under the current proposal, the
State Department of Revenue will collect the funds that will be passed onto the private organization. If the
bill passes, it would initially generate approximately $10 million and $20 million in the future to be spent
on tourism promotion in the State.
With regard to the limited time to demonstrate that the EDC is worthwhile, Mr. Faires encouraged the
EDC to look at the original mission statement and criteria for EDC activities.
6. ESTABLISH MEETING DECORUM AND REVIEW ROBERT'S RULES OF ORDER
Chair Schindler relayed the EDC will use modified Roberts Rules of Order. To provide some semblance
of order and allow voices to be heard, he asked commissioners to be recognized by the chair before
speaking.
7. PRESENTATION BY DOUG SPEE ON POST OFFICE PROPERTY
Development Services Director Shane Hope explained Mr. Spee's building is a great example of mixed
use in the downtown area and incorporates things the EDC, City Council and public are interested in. She
acknowledged it was not easy to develop a design for the site.
Approved Minutes
Economic Development Commission
February 23, 2015
Page 2
Doug Spee explained he came to Edmonds 1992, bought a couple houses on 3rd and Bell Streets and built
a mixed use building in 2001; it took him 3 years to get permit. When he learned the post office was for
sale, he made an offer and purchased the site and began discussing a lease agreement with the post office
due to their desire to reduce the post office from 8,000 to 4,000 square feet. As the development code
required commercial, his original permit was a classic mixed use in phase 1 with only the post office as a
commercial tenant. The site is very commercial on Main Street but morphs mid -block into residential.
He discussed potential code amendments with the Planning Board so that the first phase would make
more sense. After approximately a year, the Council approved three of the five amendments including
extending the designated street frontage into BD2. As a result the post office will be located where the
designated street frontage is required on the ground level and there will be ground level residential near
Bell Street where there is a more residential feel.
When the development code changes were approved, a process that took two years, he submitted an
application. Their initial design was 34 feet because his architect thought the additional height would be
approved because they were keeping the post office in the same location. When that design was rejected,
the structure was changed to concrete floors and wood on the top floor to fit within the 30-foot height
limit. There are no deviations from the development code.
He considered a hotel for phase 2; one of the hotel chains provided him their design template and work
began on a concept. When bad press spread about the design, he stopped working on it for a while. A few
months ago his architect began working on a phase 2 design that is within code; a classic mixed use
building, sharing the garage opening but with separate parking for commercial and residential, 26
apartments, and 3 commercial tenants approximately 2,600 square feet each including a restaurant on the
Main Street side with garage -type doors that open onto sidewalk. An Irish pub, Paddy Coins, is a
potential tenant.
He displayed a preliminary Main Street elevation where there is a 6-foot slope, 2 floors of residential
above commercial and an open seating area. He noted the City's height limits result in boxy cubes; his
goal was modulation to create interest and avoid empty storefronts. This building will also have concrete
floors and cantilevered decks. He anticipated a March 1, 2016 opening. With regard to a hotel, he
reported the Hotel Group in Edmonds said he needed another floor in order for a brand name, 65-room
hotel to pencil. He provided the following information in response to Commission questions:
• Phase 1: 42 units, 850-1500 square feet, similar to the building at 3rd & Bell
• Phase 2: 26 units, some smaller units so more affordable, 700-1900 square feet, nice mix of
tenants. Did not want to do Ballard/Redmond tiny apartments.
• No water table issues in underground parking
• Main Street elevation has 6-foot slope to the corner
• Described how restaurant relates to sidewalk
• 17 commercial parking stalls in phase 1 which is more than the code requires, 24-25 total when
phase 2 completed.
• Separate parking for residential and commercial. Secure residential building and parking
• Mail drop off on passenger side
• Phase 1 will take 18 months, phase 2 will take 15 months
• Do not know who the commercial tenants will be except for the restaurant
• His next project will be reactivating a project in Redmond
• This is an example of how a 3-story building can be built within code but it is expensive
• With concrete structure, all walls are non -bearing, can change configuration within units (with the
exception of the top floor)
Approved Minutes
Economic Development Commission
February 23, 2015
Page 3
• Differences between Edmonds and Redmond: Redmond allows 85 feet and provides developers
an opportunity to discuss a project with a planner to determine whether it meets code; that process
does not exist in Edmonds. He recommended the City giving planners more authority to sit down
with a developer and have an open discussion. Preliminary drawings are very expensive. Impact
fees are very high in Redmond, $10,000/unit.
Commissioners expressed appreciation for Mr. Spee's long term view and his tenacity, and said his
building will be a great addition to the City. Mr. Spee invited Commissioners to contact him at
Edmonds202O(kgmail.com or visit BUS Construction at 3rd and Bell. He summarized his experience with
City staff has great once he had a permit.
8. REVIEW THE POWERS AND DUTIES OF THE CITIZENS ECONOMIC DEVELOPMENT
Economic Development & Community Services Director Patrick Doherty explained as an appointed
body, Commissioners are all officials of the City and are required to have Open Public Meetings Act
(OPMA) training. One of the biggest issues is a quorum of the group engaging in discussion outside a
noticed meeting which is a violation of the OPMA. He clarified "meeting" also includes email and
cautioned Commissioners not to reply -all to emails they receive to avoid entering into a dialogue. He will
email the PowerPoint created by the State and he requested Commissioners email him or Ms. Cruz when
they have completed the training.
Chair Schindler explained the powers and duties of the EDC are contained in the Board and
Commission's section of the City's website. In June 2009 the City Council passed Ordinance 3735,
which amended the Edmonds City Code, Title 10, adding a new Chapter 10.75 Citizens Economic
Development Commission. The Commission is empowered to advise and make recommendations to the
Mayor and City Council, and as appropriate to the Planning Commission, Architectural Design Board or
other Boards or Commissions of the City on such matters as may be specifically referred to the
Commission by the Mayor or City Council including but not limited to:
• Determining new strategies for economic development within the City of Edmonds
• Identifying new sources of revenue as a direct result of economic development projects for the
consideration of the City Council
The Commission shall deliver an annual report to the City Council in written and oral form on or about
the first meeting in December of every year.
Chair Schindler advised the final draft of annual report was prepared by Commissioners Witenberg and
Garrett and will be presented to the Council in March. Commissioner Haug asked whether the report
would be circulated for input by Commissioners. Chair Schindler answered no, it will be available to
view but not for comment. He said the subcommittees' pulse reports would be used in the future to
prepare the final report. Commissioner Senderoff cautioned against the report including any editorialized
comments that did not reflect the entire Commission's view.
9. REVIEW OF SUBCOMMITTEE PURPOSES
Vice Chair Rubenkonig recalled the subcommittees have been modified over the years. The current
subcommittees are:
• Tourism and Visitor Services
Business Districts Enhancement (originally Land Use and Business Incentives)
Strategic Action Plan Implementation
Approved Minutes
Economic Development Commission
February 23, 2015
Page 4
Vice Chair Rubenkonig referred to the list of subcommittee assignments. He cautioned against more than
seven Commissioners serving on any one subcommittee because that constitutes a quorum and requires
the meeting be noticed as a public meeting.
Mr. Doherty cautioned about Commissioners visiting a subcommittee meeting due to the quorum issue.
He suggested Commissioners email staff before attending an another subcommittee's meeting.
Commissioner Matteson requested a list of EDC members, phone and emails.
Commissioner Witenberg described the Business Districts Enhance Subcommittee's purview: land use,
business incentives, areas that are prime for redevelopment, input regarding the Comprehensive Plan
Economic Development Element, and streamlining the permitting process. In response to Mr. Spee's
comments, Commissioner Senderoff suggested the subcommittee discuss the role of the Planning
Department in the concept development stage.
Commission Dewhirst described the Tourism and Visitor Service Subcommittee's role: 1) identify and
study activities and services that bring visitors to Edmonds and expand activities/services for residents so
they spend more time in the City and in the process spend more money, 2) since the EDC has no money,
identify ways to accomplish things such as partnerships, and 3) advertise Edmonds.
Commissioner Haug explained the idea of Strategic Action Plan originated with the EDC. With the
assistance of a consultant, the City Council, Planning Board and EDC reviewed information and refined
the plan that was ultimately adopted by the City Council. The City hired a consultant who is working with
the leads to identify issues, what is moving forward/stalled, etc. The consultant will provide a report next
month that will be the foundation for moving forward. The City Council also approved funding for
software to track SAP elements. The SAP Implementation Subcommittee will reflect on what the
consultant did, roadblocks/opportunity, what is moving forward/stalled and begin to assess the EDC's
role.
Vice Chair Rubenkonig summarized the duties of the subcommittees include:
• Writing white papers
• Researching merits of new sources of revenue
• Lobbying on official and endorsed EDC proposed sources to Council
• Being an ambassador, seek out potential for new actions to pursue or merits of ideas
• Exploring ideas, determining if they are worthwhile to pursue and if so, presenting them at the
monthly EDC meeting.
10. SUBCOMMITTEE ASSIGNMENTS
Chair Schindler advised Commissioners who were not previously on a committee were assigned to a
subcommittee. Commissioners interested in changing subcommittees were invited to inform Vice Chair
Rubenkonig or him.
11. THREE AREAS OF FOCUS FOR COMMISSION AS A WHOLE
Chair Schindler relayed the three areas of focus for the EDC:
• Tourism
• Redevelopment (identifying under -performing properties and assisting with improving
performance)
• Attracting new business
Approved Minutes
Economic Development Commission
February 23, 2015
Page 5
The EDC's primary goal is the economic sustainability of Edmonds — what can the EDC
present/advise/suggest that will add to the economic sustainability of Edmonds.
12. REVIEW OF COMMISSIONER ASSIGNMENTS FOR MARCH
Chair Schindler urged Commissioners to complete their assignments:
• Commissioners to identify a Student Representative for the Commission per Code 10.03
o Age 18-25 live in Edmonds or attend an Edmonds School.
o Submit student name to Mayor's office
• Subcommittees identify their top two projects, what generational demographics they are
targeting, and plan to report in March
• Answer at March meeting how subcommittee projects will improve, 1) tourism, 2) economic
sustainability, and/or 3) attract new/retain existing businesses to Edmonds
• Speakers or topics like to see
o Chamber will make a presentation in March
• Business Districts Enhancements (BDE) and Tourism Subcommittees identify how or what
projects the Implementation Subcommittee can assist with and get that to the subcommittee by
month end
Discussion followed regarding the importance of giving the Student Representative an assignment/task
and encouraging him/her to interact with the EDC, economic development that targets the 18-30 age
group who have money to spend, inviting a high school DECA group/service group to talk to the EDC
about what is missing in Edmonds, inviting a high school class to think about sustainability and make a
presentation to the EDC, engaging the 18-25 demographic in the redevelopment of senior center into
community center via the SAP Implementation Subcommittee, and doing the legwork now for a high
school project next year.
13. COUNCIL LIAISONS' COMMENTS
Councilmember Petso reported:
1. The EDC's annual report is due the first meeting in December. If the Council extends the
Commission's sunset date, she suggested changing the annual report due date to March 1 as the
Council is very busy in December with the budget, etc.
2. Citizens have expressed concern about noticing of subcommittee meetings. She read from the
Attorney General's website: "While an argument can be made that committee may be required to
give notice only for those meetings where it takes testimony or public comment or exercises
decision making authority for the governing body, it would be prudent for committees to conduct
all their business in open meetings." She suggested an easy way to address the issue of a quorum
and complying with OPMA was to notice all subcommittee meetings.
3. The Council will be discussing the Economic Development Element during a study session
tomorrow. Comprehensive Plan Elements are usually very general concepts; she relayed concern
the Economic Development Element seems like a work plan. As the Economic Development
Element is not a required element, she suggested the Commission consider whether to include it
in the Comprehensive Plan or to adopt an Economic Development Action Plan.
14. PLANNING BOARD UPDATE
Planning Board Chair Phil Lovell provided an update on the Planning Board's activities:
• January 28 — No meeting due to lack of a quorum
• February 11 meeting
Approved Minutes
Economic Development Commission
February 23, 2015
Page 6
o Reviewed Economic Development Element
■ Tendency by Planning Board Members to include things in the element that would be
more appropriate for the Strategic Action Plan
■ The goal is to make the Comprehensive Plan general, conceptual, universal and a basis
for more detailed plans.
■ Discussed improving the City's economic sustainability by reducing energy costs. There
is a growing awareness that a lot of the City's economic sustainability is dependent on its
physical status —facilities, buildings, land use and infrastructure
o Discussed Transportation Plan including its relationship with the CIP and CFP
Extended agenda
o February 25 — Open house on Comprehensive Plan in the Brackett Room
o Future meetings will include discussion regarding the Tree Code, Cultural and Urban Design
Elements, Critical Areas Ordinance, and continued review of the Transportation, Economic
Development and Land Use Elements
o June 10 — Planning Board public hearing on the Comprehensive Plan
16. MISCELLANEOUS
Commissioner Anttila inquired about the Tree Code. Mr. Doherty explained the Tree Board made a
recommendation regarding the Tree Code. Review and recommendation by the Planning Board is
required for any change to City's development regulations.
Commissioner Senderoff remarked a lot of trees are being cut in his neighborhood and he wondered if it
was due to fear of upcoming changes in the Tree Code.
17. AUDIENCE COMMENTS
Ron Wambolt, Edmonds, reported he attended the Council interviews for the vacant Council position.
Councilmember Petso asked for suggestions about reducing retail leakage; there were few good answers.
Big box stores in surrounding communities and the internet make it difficult for small businesses. He
noted the change in 2009 to designation sales tax collection was beneficial to the City; the City receives
the sales tax for products that are ordered on the internet and delivered. The City's Finance Director has
assured him the City is receiving the tax from those items. Mr. Wambolt suggested items that cannot be
purchased in the City be purchased and delivered by a business operating elsewhere in Washington so that
the City collects the sales tax. In response to a question, Mr. Doherty clarified the sales tax on vehicles is
collected where the paperwork is signed.
18. ADJOURN
With no further business, the meeting was adjourned at 7:53 p.m
Approved Minutes
Economic Development Commission
February 23, 2015
Page 7