2015-03-18 Economic Development Commission MinutesCITY OF EDMONDS
ECONOMIC DEVELOPMENT COMMISSION
March 18, 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
Julaine Fleetwood
Randy Hayden
Roger Hertrich
Nicole Hughes (arrived 6:04 p.m.)
Debbie Matteson (arrived 6:07 p.m.)
Darlene Stern
Douglas Swartz
Bruce Witenberg
COMMISSIONERS ABSENT
Kevin Garrett
Darrol Haug
Jamie Reece
Rich Senderoff
Teresa Wippel
1. OPENING REMARKS
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.
Cindi Cruz, Program Coordinator
Frances Chapin, Arts & Culture Program Mgr.
Jeannie Dines, Recorder
Chair Schindler advised that Commissioners Garrett, Wippel, Senderoff and Haug had excuses absences.
2. ROLL CALL OF MEMBERS PRESENT
3. APPROVAL OF ECONOMIC DEVELOPMENT COMMISSION MINUTES OF FEBRUARY 23,
2015
COMMISSIONER WITENBERG MOVED, SECONDED BY COMMISSIONER STERN, TO
APPROVE THE MINUTES OF FEBRUARY 23, 2015. MOTION CARRIED (10-0-1),
COMMISSIONER HAYDEN ABSTAINED. (Commissioners Hughes and Matteson were not present
for the vote.)
4. WELCOME NEW COMMISSIONERS: JULAINE FLEETWOOD AND RANDY HAYDEN
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Chair Schindler welcomed Commissioners Hayden and Fleetwood and they described their backgrounds
and interest in economic development.
Chair Schindler reminded Commissioners to use their City email for Commission business and to check it
periodically.
5. DISCUSSION AND UPDATE ON EDMONDS SENIOR AND COMMUNITY CENTER
Senior Center Executive Director Farrell Fleming introduced John Osterhaug, Senior Center President,
and Alma Ohtomo, Treasurer. He recognized Roger Hertrich, Board Member and Phil Lovell, Vice Chair,
Strategic Planning Committee. He introduced Daniel Johnson, recently hired Campaign Director, and
described his involvement with Kingston's Village Green project which includes a Senior Center, Boys &
Girls Club, Library and Community Center. Kingston's project has a similar size budget and square
footage and with a population of 2,000, has already raised $6 million of the $8 million budget. Following
a selection process, the Senior Center Board chose Mr. Johnson.
Mr. Fleming provided the ESC's mission, To enrich the social, physical, and intellectual well-being of
seniors and vision, To develop the full potential of every senior while connecting and strengthening our
community. He explained the community center is a gift from the Edmonds Senior Center (ESC) to the
Edmonds Community. What is unique about the development is the seniors are taking it on; the
membership very supportive of a community center.
He reviewed the ESC's history and looking ahead:
• 1967 South County Senior Center begins offering programs
• 1971 HUD recognizes the Center as a national model for its multi -purpose approach
• 1972 City owns no waterfront property
• 1973 City acquires waterfront property (2 buildings) via HUD grant and City match
• 1980 Major grant allows construction to connect the two buildings
• 2007 Structural study finds it would be cost prohibitive to retrofit existing building ($3 M+)
• 2008 Governance overhaul empowering membership
• 2014 City of Edmonds endorses (via resolution) ESC to demolish existing building and
construct community center
• 2017 50'h anniversary and proposed date to break ground/open new community center
He described the need
• Aging population trend
o Over 65
■ 19.1 % Edmonds
■ 10.3% Snohomish County
■ 12.3% State of Washington
o Median Age
■ 46.3 Edmonds
■ 37.1 Snohomish County
■ 37.3 State of Washington
Structural issues with current building
Preserve rare waterfront property for public use
Limited space for vital programming in Edmonds
He reviewed project goals:
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1. Construct a new state of the art, sustainable, model community facility that serves citizens of all
ages. Intent is for the building to function as a senior during the day (8 a.m. — 4 p.m.) and a
community center in the late afternoon/evening (4 — 10 p.m.)
2. Offer a range of dynamic & engaging programs emphasizing health and wellness
3. Protect and preserve the rare waterfront property
He displayed a conceptual site plan and floor plan (prepared by two architects) that includes a hall that
will seat 240 (tremendous potential for rentals). The community center will offer a variety of dynamic
health and wellness, recreation and education programs for seniors and the community including the
Bastyr Clinic, UW Healthy Brain Initiative, and regional cold weather shelter for the homeless.
Mr. Fleming described shoreline protection:
• Meet/exceed Shoreline Management Program
• Setbacks
• 30% view corridor
• Maintain height guidelines
• Possible bulkhead realignment — enable beach access at high tide
Mr. Johnson reviewed estimated costs (vetted numbers):
Construction $8,820,000
Development $ 715,000
Other Costs $ 415,000
Total $9,950,000
He described fundraising:
Sector
Goal
Leadership (individuals)
$2,350,000
Board
$400,000
Government
$4,500,000
Foundations
$2,050,000
Business
$400,000
Community Campaign
$300,000
Total
$10,000,000
He displayed a $10 million Gift Chart that listed the gift range, number of gifts required, number of
prospects required, subtotal, cumulative total and cumulative percentage.
Mr. Fleming reviewed milestones achieved:
• Edmonds City Council and Snohomish County unanimous Resolutions support new center
construction on existing site
• Rose Cantwell and Diane Buckshnis sign on to co-chair capital campaign
• Campaign staff hired
• Board campaign launched
• City of Edmonds signs Option to Lease: 40/55-year Ground Lease for new building
He described public benefits of the project:
• Services for seniors provided by private nonprofit — saves taxpayers money (typically government
operated)
• New community center for residents of all ages built by ESC
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• New community amenities — meeting and event space
• Improved beach access
• Construction jobs
• Increased jobs for expanded programs
• Additional tax revenue from construction and ongoing
• Economic development in downtown
• Increased property values
• Will attract people and businesses to downtown
• Increased rental income
Mr. Fleming summarized reasons the time is now:
• Respected history
• Engaged membership
• Compelling need
• Extraordinary site
• Partnership with City
• Vision to serve citizens of all ages
• Improved economy
• Leadership — campaign co-chairs- Rose Cantwell and Diane Buckshnis
Mr. Fleming and Mr. Johnson responded to Commission questions regarding Edmonds Community
College's projected use of the facilities due to their sale of the conference center on 4th & Bell, bricks as a
fundraiser during the public phase of the campaign, conceptual design, site constraints that dictate a
rectangular building, public process on the preliminary building design, intent for a design with a
Northwest flavor with a lot of glass to take advantage of the views, funds in the budget for maintenance,
City maintenance of the grounds, engaging youth in the design of the space and providing input regarding
programs, how the building fits into the grand scheme of waterfront development, utilizing the site as a
more effective resource for the community, ensuring the center continues to be welcoming for seniors,
continued programming during the year the senior center is off site, guarantee provided by the Option to
Lease and Ground Lease that the ESC will not be moved, the existing lease with the City and continuing
the $10/year ground lease with the City.
6. SUBCOMMITTEE REPORTS: 1) AREA OF FOCUS; 2) TARGET DEMOGRAPHICS; 3) HOW IT
IMPROVES TOURISM, ECONOMIC SUSTAINABILITY, OR ATTRACTS NEW BUSINESS
a. Tourism
Commissioner Dewhirst reported the subgroup will not meet until next month so the following comments
have not been vetted by them but reflect what has been discussed in the past.
• Areas of Focus
1. Infrastructure (downtown restrooms)
2. Building on existing events and diversifying, primarily the arts and increasing activity on the
waterfront
3. How to attract people to Edmonds, make Edmonds stand out as a place to visit, spend the
day.
Target demographics for the above three:
1. Everyone
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2. Edmonds is located between the two biggest tourist attractions in Washington — Seattle and
Boeing — need to get them off the freeway and into Edmonds. Focus is day trippers until more
hotel facilities are available.
How it improves tourism, economic sustainability or attracts new business:
o Once get people to come to Edmonds, how to get them to stay longer and how to increase the
number of regional visits.
Port Commissioner Bruce Faires reported on a bill in the legislature that would create a mechanism
whereby a privately controlled enterprise, using the State revenue system, will assess tourism -related
businesses and the revenue generated will fund a tourism marketing campaign. The House Finance
Committee is considering SHB 1938, the bill that creates this mechanism. He encouraged Commissioners
to contact their legislators; Representative Cindy Ryu is on the House Finance Committee. Mr. Doherty
reported the City's lobbyist has been directed to support that bill.
Mr. Faires reported the Port has signed a contract with Puget Sound Express to operate daily whale
watching tours for 50-60 people/boat from the Port. The Port of Seattle will market whale watching tours
out of Edmonds to national and international tourists. He estimated people going on the tour will eat one
meal in Edmonds. Chair Schindler suggested the Tourism Subgroup talk with the Port. A comment
followed regarding the number of entities working on tourism such as BID, City, Port, Chamber and the
Tourism Subgroup and a suggestion to consolidate their efforts.
Mr. Doherty reported the majority of tourism related activities are covered by the lodging tax, augmented
with limited funds from the Economic Development Department. Those expenditures are recommended
by the Lodging Tax Advisory Committee (LTAC). This year those funds are used for advertising, support
of events, and a consultant to prepare a strategic marketing plan to identify the audience and the best way
to reach them. In addition to advertising in specific locations, the LTAC authorized $21,000 for general
advertising. Recognizing with limited lodging, there is more potential for growing day trippers during the
shoulder seasons (spring and early fall) from places such as Vancouver BC, Seattle -Bellevue, etc.
With regard to restrooms, Mr. Doherty reported staff is actively researching the cost of a facility and
M&O including contacting other cities that have downtown restrooms. He noted downtown restrooms
have higher use and a higher expectation with regard to appearance, cleanliness, etc.
b. Strategic Action Plan (SAP)
Commissioner Stern advised a 2-page report will be distributed by Ms. Cruz. She provided an overview
of the SAP:
• Contains 88 items and is a roadmap for Edmonds
• Was approved by Council in 2013
• Understood to be a living document
• Report from consultant indicates 84 of the 88 action items have primary leads, 6 have been
completed, 70 are in motion and 12 have not started
• Some action items are very complicated, long term, financially challenging
• City purchased software to track progress, subgroup looking forward to software demo
• Important to keep the public informed regarding progress
• Request the Council delay approval of the SAP until the subgroup has an opportunity to review
the changes
• SAP includes senior center
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Mr. Doherty advised the report the consultant presented to the Council last week identified language that
needed to be clarified, implementation and worksheets for primary leads. The Council requested
additional time for review and continued discussion is tentatively scheduled for the April 7 Council
meeting. One of the consultant's recommendations was to strike the language regarding relocating the
senior center due to language in the recently approved PROS Plan as well as the Option to Lease and
Ground Lease. Ms. Chapin clarified the public process to update the PROS Plan which started in June
2013, following the SAP, indicated residents were not interested in moving the senior center.
C. Business District Enhancements (BDE)
Vice Chair Rubenkonig reported on topics discussed at the subgroup meeting (topic advocate in
parenthesis):
• Business incentives (Senderoff)
• Incubator for startups, a possible way to bring clean technology industry to the City with the
possibility of attracting younger demographic (Rubenkonig)
• Website improvements (Doherty)
o The City's website is tentatively scheduled to be launched next week
• Revisit UW study on Five Corners (several advocates)
• What are the deliverables of the above topics
• There is a perceived gap between what we want and what we have to achieve our wants
• Trends from real estate and business as it relates to land use
Vice Chair Rubenkonig reported he, Chair Schindler, Mr. Doherty, and Tim Sadler, an architect with
experience with startups and incubators, met recently to discuss start-up incubators:
• Professional people working from home who could benefit from a place with meeting rooms,
printing facilities, etc.
• EdCC is a resource that is underused. For example, EdCC has a certificate program in energy
management
• Boeing and its various spinoffs
• Tech companies
• Could Edmonds leverage its fiber optics system to attract tech companies
Mr. Doherty relayed his experience in Federal Way; for the amount of effort, attracting a larger business
to locate in the City provided a better return than assisting startups.
(Commissioner Matteson left the meeting at 7:22 p.m.)
Port Commissioner Faires said Ports are one of the biggest incubator organizations; the Port of Edmonds'
research found businesses that incubate in Edmonds move away when they expand.
7. COUNCIL LIAISONS' COMMENTS
Councilmember Petso inquired whether she was being asked to communicate to the Council President
that the EDC was requesting the Council not approve the SAP until the subgroup has an opportunity to
review it. Commissioner Stern answered yes. [See formal action taken under Agenda Item 10.]
Councilmember Petso referred to a report that provides 2014 sales tax revenue by area of the City. Mr.
Doherty offered to distribute the report to Commissioners. Councilmember Petso said in the interest of
greater formality and transparency, she plans to research at what point subgroup meetings need to be
noticed and minutes taken. She reported on the following:
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Council Retreat
o Top priority for both City Council and staff was long range financial planning
o A boutique hotel in the downtown area was a high staff priority
Her personal opinion is few people come to Edmonds only once; most people who visit Edmonds,
regardless of the reason, return.
Strategic Plan
o Do not assume the public wants everything in the Strategic Plan. Some items that scored very
low such as a trolley may be pursued by another entity without a great commitment of City
resources.
o Some items scored well with a stakeholder group such as the 4"' Avenue Cultural Corridor,
but did not score well with the general public.
o Although the SAP is a living document, she cautioned against viewing it as to-do list.
o It has been nearly three years since the voter survey that the document is was based was done.
Consider when to resurvey voters.
8. PLANNING BOARD UPDATE
Planning Board Vice Chair Phil Lovell provided an overview of activities in last five months:
Topic
Action Taken
CIP/CFP
Plan and projects review and public hearing
Board approved and forwarded to Council with
recommendation for approval
ECDC to ECC code adjustment re: Animal
Approved resolution in support and forwarded to
Provisions
Council with recommendation
Comprehensive Plan Update
Introductions to various elements and staff reviews
Elements Discussed:
General Introduction and Land Use Element
Statistics and demographic date updates
Housing
Board member discussion, and modifications to
Utilities
draft language
Economic Development
Added supplemental language and/or points
Transportation and LOS Update
Concurrent reviews of these elements by City
Culture and Urban Design
Council being undertaken in parallel with Planning
Board reviews
Parks Recreation and Cultural Services
24 Elements/Activities reported by Director Carrie
6-month Report to Planning/Parks Board
Hite. Board reviewed, discussed and forwarded to
Council with endorsement
Draft Tree Code
Introduction and early discussion based on work of
Edmonds Tree Board and resultant code drafting
with assistance of City staff
Edmonds Development Code Updating
Staff briefings on goals and objectives, funding for
sub -consultant and introductory session with
consultant (Makers Assoc.
Extended agenda:
• Work Calendar
• Loss of Mike Nelson to City Council
• Planned retreat in June
He described factors being considered with respect to each element in the Comprehensive Plan:
1. Provide statistical and demographic data updating
2. Maintain and enhance sustainability of Edmonds
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o Appeal and character of the City
o Environmentally and economically
o Enable managed responsible long term growth
3. Avoid excessively specific goals
4. Introduce/define a sensible metric for each element within the Comprehensive Plan
• Example: For Economic Development Element, measure employment in Edmonds
Notable items in the Parks Recreation/Cultural Services Report provided to the Planning Board include:
➢ Marsh/Marina Beach Master Plan — Currently in progress with public input and including
Willow Creek Daylight
➢ Five Corners Roundabout Sculpture — Completed concurrent with overall construction
➢ Yost Pool — Boiler replaced. Negotiating with YMCA for ongoing
➢ City Park
➢ Former Woodway HS Site Development
➢ Civic Stadium
➢ Veteran's Plaza
➢ Recreation Programs
➢ Next year: Further discussion on MPD
concepts and review of Park Naming
Policy
management services
— Playground complete with redesigned "spray park" to
be installed this spring
— Funding targets achieved, construction of two fields
this summer
— Currently negotiating acquisition with ESD; hope for
transaction this year
— Design completed with public input
— Remain strong, with revenues increasing
Mr. Lovell described the Planning Board's focus regarding the Edmonds City Code and Community
Development Update:
• Update code first, processes as necessary afterward
• Complete clear and understandable definitions
• Recognize and preserve character of the city
• Recognize diversity of neighborhoods
• Enable responsible and appropriate growth and development
• Encourage and facilitate environmental sustainability
He provided the Planning Board's extended agenda April - June:
• Continued work on Comprehensive Plan
o Transportation Element
o Capital Facilities Element
o Review proposed 2015 Comprehensive Plan update (target public hearing in June)
• Continue code update work
o Critical Area Code
o Draft Tree Code
o Development Code
• Other as referred by City Council and/or staff
9. PORT OF EDMONDS UPDATE
Mr. Faires announced the Port Commission's annual retreat on April 1 at the Port. The primary focus of
the retreat will be the long term financial model for replacing physical assets. The Port is financially
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stable and there are no financial operational issues. A brief discussion followed regarding the setbacks
and buffers in the City's Shoreline Master Program.
10. MISCELLANEOUS
Chair Schindler requested Commission action regarding Commissioner Stem's request for the Council to
delay review of the SAP.
COMMISSIONER STERN MOVED TO ASK THE CITY COUNCIL TO CONSIDER DELAYING
APPROVAL OF THE STRATEGIC ACTION PLAN UNTIL AFTER THE ECONOMIC
DEVELOPMENT COMMISSION HAS AN OPPORTUNITY TO REVIEW IT. COMMISSIONER
DEWHIRST SECONDED THE MOTION.
Discussion followed regarding opportunity for input over the last year, opposition to further delay, and
the SAP Working Group that worked with the consultant to update the SAP.
MOTION FAILED (1-8-2), COMMISSIONER STERN VOTING YES, AND COMMISSIONERS
DEWHIRST AND FLEETWOOD ABSTAINED.
Mr. Doherty reported Ms. Chapin, Ms. Cruz and he are working on the City's 125tt' anniversary; events
are planned on August 11. He invited anyone interested in assisting or being a sponsor to contact one of
them.
11. AUDIENCE COMMENT — None
12. ADJOURN
With no further business, the meeting was adjourned at 7:57 p.m.
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