2016-04-14 Economic Development Commission PacketAGENDA
City of Edmonds
Economic Development Commission
Brackett Room, City Hall
121 5th Avenue North, Edmonds
April 14, 2016
6-8P.M.
6 P.M. - CALL TO ORDER
1. AM-8475 Approval of 3/30/16 EDC Minutes
2. Amendments and approval of agenda
3. Audience Comments (3 minute limit per person)
4. AM-8476 Review former EDC suggested priorities for new EDC
5. AM-8477 Review Goals & Policies from Comprehensive Plan Economic Development Chapter
Brainstorming exercises:
6 a. Small Group Exercise - what would you consider markers of success in 3 years?
b. Joint Group Exercise - based on reviewed materials or new input, in what areas would the
EDC like to focus its work over the rest of this year?
7. Other business and/or administrative matters
8. Adjourn
AM-8475 1,
Economic Development Agenda
Meeting Date: 04/14/2016
Submitted For: Patrick Doherty Submitted By: Cindi Cruz, Community Services
Department: Community Services
Information
Subject
Approval of 3/30/16 EDC Minutes
Recommendation
Narrative
Attachments
3/30/16 EDC Minutes
Form Review
Form Started By: Cindi Cruz Started On: 04/07/2016 03:39 PM
Final Approval Date: 04/07/2016
CITY OF EDMONDS
ECONOMIC DEVELOPMENT COMMISSION
March 30, 2016
The Economic Development Commission meeting was called to order at 6 p.m.
COMMISSIONERS PRESENT:
George Bennett
Mary Monroe
Stephen Clifton
Aseem Prakash
Nicole Hughes
Jamie Reece
Matthew Waldron
Darrol Haug
Michael Schindler
Port Commissioner Bruce Faires, ex officio
Nathan Monroe, Planning Board, ex officio
Greg Urban, Edmonds Chamber, ex officio
COMMISSIONERS ABSENT: none
ELECTED OFFICIALS PRESENT:
Mayor Dave Earling
Councilmember Neil Tibbott
STAFF PRESENT
Patrick Doherty, ED/CS Director
Cindi Cruz, ED/CS Program Coordinator
ALSO PRESENT:
Bruce Witenberg
Alex Witenberg
1. Welcome by Mayor Dave Earling, thanking and encouraging the new members of the 2016
Economic Development Commission (EDC). The Mayor sited a few examples of recent
development in Edmonds including new restaurant at Perrinville and the redevelopment of the
post office site as indicators of some local economic growth. The Mayor thanked the commission
for volunteering their time to the City of Edmonds.
2. Introductions: Each commissioner and liaison introduced him or herself and gave a brief
background to the rest of the commission.
3. Overview of mission, purpose and history of the EDC: Patrick gave an overview of the history
and purpose of the EDC including the recent EDC that was allowed to sunset in 2015. A new
commission was created in 2016 with nine members and four liaisons. Liaisons/ex-officio
members are full participating members of the commission who may engage in discussion and
bring forward ideas but cannot vote on issues. Commissioners are officials and ambassadors of
the City. Staff will be responsible for working on ideas that are brought forward. Study's and
website materials posted on existing website will remain.
4. Orientation on:
a. OPMA — Boards and commissions are governing bodies and must follow the Open Public
Meetings Act. Public notice will be given for public meetings as long as there is a quorum of
members (five or more) attending. E-mails to a quorum of the commission can constitute a
meeting. A Do not talk "shop" if you find yourself in a social situation with a quorum of
commissioners. Staff covers meeting requirements, and will be sending out e-mails. Please do
not use "reply all"; if you do, you can create a quorum or "rolling" quorum by responding to
Draft Meeting Summary
Economic Development Commission
March 30, 2016
Page 1
e-mails. If you have something to share to the commission as a whole please send to Patrick
& Cindi. They will distribute to the commission. Texting is also problematic and can subject
your phone to the Public Records Act requirements. Use city e-mail for all commission
business. City e-mail addresses are in this format: firstname.lastname(c-r�,edmondswa.gov. A
link to a PowerPoint and/or video training on the OPMA will be sent to City e-mails, and it
is required within 90 days to review the training and acknowledge that you have reviewed the
training by e-mail back to Patrick and/or Cindi.
b. Public Records Act — All a -mails are discoverable under the Public Records Act. Use only
official City e-mails. Try not to write anything that does not pertain to City and Commission
business. If you use your personal e-mail and receive a request for public records, you will be
required to provide an affidavit stating that you thoroughly searched your personal e-mail.
You are not required to produce a record that does not exist. The City is working on a texting
policy because texts are also subject to the Public Records Act.
c. Conflict of Interest — The commission is not regulatory, but some policy matters could go
forward and the commission must be cognizant of any potential conflicts of interest. These
must be disclosed in a public manner. An example would be: a Commissioner owns property
on Highway 99 and the Commission is engage din discussions about promoting greater
economic development growth in that area. In that case the Commissioner should announce
that he/she owns property in the area and either abstains from further discussion or action on
the matter OR declare that he/she will remain impartial and has no conflict, allowing other
commissioners opportunity to say if they would prefer that the Commissionernot participate
or vote on proposals/recommendations related to that issue.
d. Code of Ethics — Staff gave commissioners a few moments to read. Be sure to distinguish
between personal views and commission representation when expressing opinions on EDC
business. If you are contacted by the press, please do not state any opinions on behalf of
commission unless it has been voted and approved by commission. It is ok to speak about
issues and gather information.
e. Membership requirements: If you are absent for three consecutive commission meetings you
can be removed from commission; elected government officials are not eligible for
commission appointments; Commissioners must remain residents of Edmonds; and initial
terms are staggered at two and three years long, with future terms set at two years.
Meeting Logistics
a. Date and time — The previous EDCmet on the 3rd Wednesday of every month. The new
Commission needs to establish meeting time and date. Skyping or phoning in is allowed
when members are out of town. Mike Schindler moved, seconded by Mary Monroe to
establish the third Wednesday of every month at 6 p.m. for the regularly scheduled
meeting time and day, location in the Brackett Meeting Room, 3rd Floor City Hall.
Motion passed unanimously. It is the goal to keep meetings at a 2 hour limit. Staff cannot
make 3rd Wednesday in April. Jamie Reece moved, seconded by Aseem Prakash to have
April meeting on Thursday, April 14 at 6 p.m. Motion passed unanimously.
b. Location — Brackett Room, 3rd Floor City Hall, 121 5d' Avenue North, Edmonds.
Draft Meeting Summary
Economic Development Commission
March 30, 2016
Page 2
c. Participation & decision making vs consensus — There was discussion regarding how to reach
decisions. Jamie Reece moved and Mike Schindler seconded to accept voting method for
decision -making. After more discussion, motion passed unanimously.
d. Interaction with Council and other boards — Liaisons are to provide information back to the
respective groups they represent. Each commissioner should also provide feedback and
communicate with councilmember who appointed them. Councilmember Tibbott would like
to have a joint meeting with the Council sometime within the first year. Input from Council
regarding goals and accomplishments for commission. Suggested to review list from retreat
and bring list to next meeting. Strategic Action Plan is a resource for ideas of commission
work.
e. Minutes & agenda format — summary minutes will be taken, with motions and votes detailed.
6. Commission Logistics
a. Chair and Vice -Chair — Patrick explained the role of chair and vice -chair. It was decided to
wait for few meetings before electing chair and vice -chair. Staff will create agendas until a
chair is chosen. There was discussion on whether there are benchmark studies of other,
similar cities and how they could pertain to Edmonds. Some info on benchmarking is
included in the economic development chapter of the Comprehensive Plan which will be
forwarded onto Commissioners by staff.
b. Committees — Regarding sub -committees, there is no expectation for this group to form
standing sub -groups. Short-lived ad -hoc groups may arise to focus on certain subjects. .
7. Open Discussion
a. Each member shared reason(s) for participating on the EDC and a goal, objective, dream
related to economic development in Edmonds:
b.
Aseem Prakash: would like to see the Commission establish a vision of what would
constitute success on its part at the end of the first set of terms (2 or 3 years); also how
comparison or bench -marking against other, similar cities could help inform the
Commission's work and/or objectives.
Jamie Reece: more limited scope and goals than previous Commission
Mike Schindler: recruit appropriate industry for live -work opportunities. Tech industry.
Nicole Hughes: brainstorming to work on different areas/personalities/districts such as
Firdale, 5-Corners, Hwy 99 in similar ways to Westgate.
Mary Monroe: with her background in tourism at City of Lynnwood would like to see
stronger tourism push and agrees with Mike Schindler on industry with higher wages.
Greg Urban: as a liaison from the Edmonds Chamber he wants to see other areas than the
Bowl worked on for economic development
George Bennett: wants to work to make Edmonds better without getting bogged down in
"politics".
Neil Tibbott: Highway 99 improvements
Nathan Monroe: happy to be included as a member of the Planning Board.
Bruce Faires: focus on goals while remembering that this community does not like change
and long-range goals are important 10+ years.
Stephen Clifton: programs and series of initiatives to obtain community support for
economic growth that will help the City retainthe quality of life
Draft Meeting Summary
Economic Development Commission
March 30, 2016
Page 3
Darrol Haug: encouraged staff to try to show Roger Brooks webinar on 4/13. Remember to
obtain input from community members including the applicants to the commission that were
not selected.
Matthew Waldron: encourage work on utilizing space on Highway 99, 5-10 year plan to
recruit large employer(s).
8. Set next meeting — April 14, 2016, Brackett Room, 6 p.m.
9. Adjourn at 8:01 p.m.
Draft Meeting Summary
Economic Development Commission
March 30, 2016
Page 4
AM-8476 4,
Economic Development Agenda
Meeting Date: 04/14/2016
Submitted For: Patrick Doherty Submitted By: Cindi Cruz, Community Services
Department: Community Services
Information
Subject
Review former EDC suggested priorities for new EDC
Recommendation
Narrative
Attachments
2015 EDC Goals & Priorities
Form Review
Form Started By: Cindi Cruz Started On: 04/07/2016 03:41 PM
Final Approval Date: 04/07/2016
City of Edmonds
Citizens Economic Development Commission
December 16, 2015
The current City Council has decided to allow the Citizens Economic Development Commission
to `Sunset'. The items listed below are the suggested priorities by the current commission for
whatever body of citizens may (or may not) follow this group. These priorities or goals are
grouped in the following manner:
Primary: Ideas or projects that the various sub -groups or the Commission as a whole, believes
should be worked on first in the coming year.
Secondary: Ideas or projects that the various sub -groups or the Commission as a whole believe
should be considered for action once the Primary goals have been achieved.
Endorsed Ideas: Ideas or projects that other elements within the city, public or private, have
expressed an interest in. The CEDC simply says that we endorse the time and energy spent and
endorse the concept as we currently understand it. However, we as a Commission will not be
actively working on this project.
Primary Goals
• Examine the Five Corners neighborhood in light of re -development concepts enacted for
Westgate
• Continue work to track and update the accomplishments of the Strategic Action Plan
• Study various proposals to encourage increased tourism: parking, signage, festivals and
hotel accommodations
Secondary Goals
• Continue work as a "Think Tank" to explore new ideas
• Look at the possibilities of strengthening the connections between the various districts
within the city
Endorsed Ideas
• Support the ongoing efforts to re -vitalize Highway 99
• City study of the feasibility of Esperance Annexation
2016 CEDC Goals
AM-8477
Economic Development Agenda
Meeting Date: 04/14/2016
Submitted For: Patrick Doherty
Department: Economic Development
Information
5.
Submitted By: Cindi Cruz, Community Services
Subject
Review Goals & Policies from Comprehensive Plan Economic Development Chapter
Recommendation
Narrative
Attachments
Comp Plan Econ Dev Chapter
Form Review
Form Started By: Cindi Cruz Started On: 04/07/2016 03:43 PM
Final Approval Date: 04/07/2016
Economic Development Element
Introduction and Discussion of Economic Development
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 five major sections: Introduction and Discussion of Economic
Development, The Edmonds Economy, Economic Development SWOT Analysis, Economic
Development Goals and Policies, and Implementation.
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."
In simple terms, economic development has traditionally been thought of as meaning encouraging
"growth." In recent years, many communities have focused more on how economic development fits
within a general framework of community sustainability. This framework attempts to integrate
economic prosperity, environmental sustainability, social and political equity, and cultural
engagement as the constituent parts of the community's overall health.
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.
Economic Development 97
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
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 40,381 residents in Edmonds. That is a 1.7 percent
increase since the official 2010 census, lagging behind both the Snohomish County and Washington
State growth figures of 2.9 percent and 2.6 percent, respectively, during that period.
Of further note in understanding the local economy are the following additional demographic factors:
Average age. The 2013 estimated average age in Edmonds is 48.1 years, substantially older than the
countywide average age of 37.5, 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.
Economic Development 98
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 nearly 80 percent of residents listed as "white," Edmonds is less ethnically/racially diverse than
the following nearby cities:
City
Percentage of Residents listed
as "white" in the US Census
Edmonds
79.7
Kirkland
74.3
Mill Creek
66.9
Shoreline
66.8
Seattle
66.7
Everett
66.0
Redmond
58.7
Bellevue
58.2
Lynnwood
56.8
Figure 30: Percentage of Residents Listed as "White" in US Census
Source: American Community Survey 3-yr, 2011-2013
Households. Of the 17,381 households, the degree of home ownership (69 percent) in Edmonds is
substantially greater than many nearby cities.
City
Percentage Owner -Occupied
Households
Edmonds
69%
Shoreline
65%
Mill Creek
63%
Kirkland
57%
Redmond
54%
Lynnwood
53%
Bellevue
53%
Seattle
48%
Everett
45%
Figure 31: Percentage of Owner -Occupied Households
Source: American Community Survey 3-yr, 2011-2013
Economic Development 99
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 2011-2013, the
Edmonds' median household income was $67,228 per year, compared with a Snohomish Countywide
average of $67,192 and a King Countywide average of $70,998.
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.
Labor Force. Of the city's total 2013 population of 40,381 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, education, and a small amount of manufacturing.
With 13,232 jobs in 2013, Edmonds exhibits a ratio of 0.325 jobs per capita. However, this equates
to 0.625 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 Figure 32 provides a quick comparison of jobs, population and jobs per capita in
Edmonds and other Snohomish and King County communities. As can be seen, Edmonds provides a
relatively lower number of jobs per capita (0.325) than several other nearby cities. However, as
mentioned above, when compared with the 21,174 Edmonds residents in the labor force, the Edmonds
economy provides 13,232 jobs — a ratio of 0.62 per Edmonds worker. Nevertheless, according to US
Census data, Edmonds -based jobs employ only about 20 percent (approximately 4,200) of these
Edmonds labor -force residents. That is to say, up to 80 percent (approximately 17,000) 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.
Economic Development 100
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
13,232
40,727
0.325
21,174
0.625
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
Snohomish
lTotal
1 264,844
1 745,913
1 0.355
391,151
0.677
Sources: Puget Sound Regional Council; American Community Survey 3-yr, 2011-2013
Figure 32: Jobs per Persons in Civilian Labor Force
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 -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 percent of Edmonds jobs —
substantially above the averages of Snohomish County and several nearby cities:
Govemment
2.7%
ConsVRes
3.9%
Manufacturing
0.7%
Figure 33: Edmonds Employment by Sector
Source: Puget Sound Regional Council, "Covered Employment Estimates, " 2013
Economic Development 101
City
Percentage of Jobs
in Service Sector
Edmonds
70%
Mill Creek
59%
Shoreline
46%
Lynnwood
45%
Snohomish County
1 35%
Figure 34: Percentage of Jobs in Service Sector
Source: Puget Sound Regional Council, "Covered Employment Estimates, " 2013
The second largest employment sector is retail, comprising 12.3 percent 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 percent.
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.
The manufacturing sector, in contrast, 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.
• 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.
Economic Development 102
• The manufacturing sector will likely remain small, but growth is likely to increase in the
artisanal industries, such as food, beer, spirits and other products, as well as low -impact,
specialty manufacturing, such as software, electronics, green technology, etc.
• 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.
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."
Figure 35 shows the top (over $10,000,000) retail sales sectors (by NAICS title) in 2013 of the 50
sectors reporting.
Retail Sector (NAICS title)
Taxable Retail Sales
(in millions)
Cars & Other Vehicle Dealers
$
152.2
Food Service, Caterers, Bars
$
87.0
Food/Beer/Wine/Liquor Stores
$
29.4
Construction (new housing)
$
25.0
Apparel/Accessories/Jewelry Stores
$
22.8
Health Care and Social Assistance
$
17.3
Auto/Personal/Household Goods Repair
$
16.2
Used Merchandise/Pet/Art/Gift/Office Stores
$
14.3
Construction (exterior, finishing, equipment)
$
10.9
Pharmacies/Beauty/Personal Care Stores
$
10.5
Figure 35: Top Retail Sectors in Edmonds, 2013
Source: Puget Sound Regional Council, "Covered Employment Estimates, " 2013
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.
Economic Development 103
CITY
TAXABLE RETAIL
SALES
Lynnwood
$
57,289
Kirkland
$
23,199
Shoreline
$
15,582
Edmonds
$
15,198
Mukilteo
$
11,203
Mountlake Terrace
$
9,522
Figure 36: Taxable Retail Sales per Capita in 2013
Source: American Community Survey 3 yr, 2011-2013
As shown in Figure 36, 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
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 percent.
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 percent 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 figures break down this
analysis:
Description
Total
, 2013 Census estimate
7pita
40,381
me, 3-yrACS 2011-2013
$
40,892
ncome Spent on Categories Listed (Western US Avg.)
19.94%
Avg. Retail Spending Per Capita for Selected Categories (Edmonds)
$
8,152
Total Income of City's Residents
$
1,651,259,852
Expected Expenditures by City's Residents for Selected Categories
$
329,201,769
Estimated Taxable Retail Sales
$
279,092,756
Figure 37: Edmonds Actual Aggregate Retail Sales as a Percentage of Potential Sales
Source: US Census; American Community Survey 3 yr, 2011-2013; Bureau of Labor Statistics; WA Department of
Revenue
Economic Development 104
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%
$ 72,417,652
$ 85,776,628
0.844
Household Textiles
0.22%
$ 3,627,818
$ 1,040,569
3.486
Furniture
0.63%
$ 10,343,492
$ 481,624
21.476
Floor Coverings
0.04%
$ 606,012
$ 1,101,342
0.550
Major Appliances
0.39%
$ 6,408,539
$ -
Apparel and Services
2.71%
$ 44,787,121
$ 20,189,446
2.218
Footwear
0.52%
$ 8,513,896
$ 1,055,428
8.067
Other Apparel and Services
0.37%
$ 6,179,014
$ 1,529,057
4.041
Vehicle Purchases
4.68%
$ 77,234,377
$ 148,878,789
0.519
Gasoline
3.89%
$ 64,262,080
$ 5,220,946
12.309
Pet Supply
0.77%
$ 12,684,978
$ 2,044,641
6.204
Toys, Hobbies, and Playground Equipment
0.27%
$ 4,408,864
$ 1,354,332
3.255
Personal Care Products
1.07%
$ 17,727,926
$ 10,419,954
1.701
Totall
19.94%
$ 329,201,769
$ 279,092,756
1.180
Figure 38: Edmonds Actual Retail Sales by Category as Percentage of Potential Sales
Source: US Census; American Community Survey 3 yr, 2011-2013; Bureau of Labor Statistics; WA Department of
Revenue
* *Note: A ratio of 1:1 would signify a 100 percent 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 I 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 percent of
the total retail sales that would be expected from Edmonds residents, based on Western
US average retail sales rates, with up to $57,929,741 of potential spending going
elsewhere.
• 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 percent of retail
sales that would be expected from Edmonds residents, based on Western US average
retail sales rates.
• Consequently, there is an almost 50 percent "leakage" of potential nonvehicle-related
retail sales from Edmonds — an amount that could total as high as $125,000,000 annually.
• 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.
Economic Development 105
• 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 percent of the total taxable retail sales for businesses with
locations in Edmonds.
City Revenues and 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.
Revenue
LZI
Quality
of Life
Services
Of the City's annual tax revenues, property tax comprises 38.9 percent, utility tax 18.4 percent and
sales tax 16.9 percent, for a combined total of almost 75 percent 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.
13.2%
16.9%
2.2%2oOrO- 1 , 11Ipe
18.4%
Figure 39: Edmonds General Revenues by Source
Source: City of Edmonds Adopted 2015 Budget
■ Property Tax
■ Utility Tax
■ Sales and Use Taxes
Charges for Services
Licenses & Permits
■Transfers In
■ intergovernmental
■ Fines and Penalties
■ Miscellaneous
■ Excise Tax
Economic Development 106
The following figure compares Edmonds against other nearby communities in terms of percentage
contributions from sales and property taxes to municipal revenue:
Sales Tax
Property Tax
Edmonds
17%
39%
Lynnwood
28%
17%
Mukilteo
20%
34%
Mill Creek
21%
49%
Bothell
14%
14%
Kirkland
1 12%
18%
Figure 40: Percentage Contribution of Sales and Property Tax
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.
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,
Economic Development 107
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 includes goals and policies that reflect the need to accommodate
appropriate development/redevelopment throughout the various business districts in Edmonds.
Lastly, another source of potential growth in retail sales and the resulting municipal tax revenue could
lie in achieving greater energy efficiency in Edmonds' homes and businesses. A 2010 study
conducted by Sustainable Edmonds reported that utility consumption just from electricity and natural
gas constituted on the order of $35-40 million annually in the 2008-2009 period. While that figure
can vary considerably as energy prices vary, a figure on the order of $30+ million suffices for
planning purposes. Sustainable Edmonds has further identified that through relatively modest energy -
saving interventions on existing homes and businesses, approximately 10 percent savings can be
achieved, which could free up approximately $3 million dollars in additional discretionary income
among Edmonds residents.
Economic Development SWOT Analysis
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:
• Amenity -rich community with high quality of life
o Picturesque waterfront setting, with publicly
accessible waterfront and rich variety of
parks and recreational activities
o Traditional downtown with array of
specialty retailers, food and drink
establishments, entertainment and services,
complemented by free parking
o Distinctive neighborhoods and business districts
o Regionally renowned events and festivals
o Historic character
• Intermodal transit connections
• Port of Edmonds' role in economic vitality, especially as
anchor to strong, growing maritime business sector
Economic Development 108
• Publicly accessible fiber optic network in the Downtown area
• Strong, prominent and regionally recognized arts community
• Burgeoning health services sector, anchored by Swedish -Edmonds
• Strong and prominent educational infrastructure from public and private K-12 institutions
to Edmonds Community College
• International business community, offering diverse array of goods and services, both in
Highway 99 "International District" and throughout the City
• Strong social capital and community pride
• High degree of home ownership
• 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 centers and lifestyle centers in
nearby communities
• 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.
• Shortage of tourism infrastructure, such as full range of accommodations, public
restrooms, way -finding signage, etc.
• Shortage of affordable housing opportunities
• Substantial portion of resident labor force commutes away for work, while large number
of workers commute in to town for work
Opportunities:
• Location, "character" and natural assets can leverage additional economic development
by nurturing existing businesses for growth and expansion and recruiting new,
complementary businesses that seek those assets.
• Existing and planned intermodal transit connections can leverage transit -oriented
development.
Economic Development 109
• Through enhanced connectivity, opportunities exist to maximize the synergy and
economic impact of the Edmonds Center for the Arts with the Downtown business
community,.
• The burgeoning arts community can leverage
greater tourism, artisanal manufacturing and
associated business.
• Highly skilled, educated workforce provides
opportunities for businesses to locate in
Edmonds that offer high -paying jobs
• Continued growth in the emerging business
sectors of artisanal and craft producers,
including microbreweries, distilleries,
specialty foods, and low -impact, specialty
manufacturing.
• Telecommunication/technology assets can provide better service for existing business
customers and attract new business.
• Infrastructure improvements around the business districts can enhance their attractiveness
for investment and viability of commercial and mixed -use development.
• Downtown and the Highway 99 corridor near the medical services node around Swedish -
Edmonds offer opportunities for additional hospitality facilities.
• 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.
• Large numbers of workers who commute to Edmonds create additional demand for
affordable housing
• Travelers through Edmonds via the Washington State Ferry system offer potential for
greater business activity.
• Senior, more affluent residents provide opportunities for businesses related to that
demographic cohort.
• Increased energy efficiency in homes and businesses could free up discretionary income
to support more local spending
Economic Development 110
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
• Increasing volumes of train traffic, with resulting increase in blockage of at -grade
crossings, could threaten economic vitality of the waterfront community.
Economic Development Goals & Policies
Each key goal in this element (or section) is identified by an alphabet letter (for example, "D").
Goals are typically followed by associated policies and these are identified by the letter of the goal
and a sequential number (for example, "D.2")
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.
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 Promote emerging business sectors such as artisanal and craft producers, including
microbreweries, distilleries, specialty foods, etc., as well as low -impact, specialty
manufacturing, including software, electronics, green technology, etc
A.7 Continue to partner with business leaders, organizations and community members,
such as the Port of Edmonds, Edmonds Chamber of Commerce, etc., to leverage
business opportunities and to solicit and address feedback to enhance the business
environment.
A.8 Leverage business opportunities related to travelers to/from Edmonds using the
Washington State Ferry system.
Economic Development M
A.9 Pursue greater energy efficiency in homes and businesses to free up discretionary
income for more local spending.
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 commercial and mixed -use redevelopment
of key properties in the City's business districts.
B.4. 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.
B.5. Provide staff support to businesses wishing to 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.
B.6. Promote enhanced connectivity between the Edmonds Center of the Arts and the
Downtown business community to maximize synergy and economic impacts.
B.7. 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.8. Work to "brand" and promote distinct business districts where there is a natural
identity, such as the Highway 99 International District, Westgate, the Swedish
Hospital Medical District, and the waterfront, among others.
B.9. Work with property owners, developers and investors to seek 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 provide a quality environment with character,
walkability and amenities for patrons and residents to enjoy.
Economic Development 112
B.10. 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.
B.11. Implement infrastructure and technology improvements around business districts to
provide enhanced service, retain and attract business.
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.
C.1. 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.
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 on 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. Employ strategic marketing opportunities to attract consumer spending from
beyond Edmonds.
C.5. Pursue available incentives to foster appropriate redevelopment, where possible.
CA 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. Recognizing the value of a progressive community in retaining and attracting
business, continue to foster an open and accepting community culture that respects
diversity.
D.3. Support and enhance social, cultural, artistic, recreational and other learning
activities for residents, workers and visitors.
DA 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 113
D.5. Integrate programs and activities related to economic prosperity with objectives
related to environmental sustainability, social and political equity, and cultural
engagement.
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, gardens and flower displays,
parks and recreational assets, etc.
E.6. Support the tourism infrastructure, including visitor amenities such as public
restrooms, the visitors' center, way -finding signage, enhanced waterfront
accessibility etc.
E.7. 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.
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.)
Economic Development 114
• 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
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:
1. 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.
Economic Development 115
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?
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.
The Comprehensive Plan contains a small number performance measures (no more than one per
element) that can be used to monitor and annually report on the implementation and effectiveness of
the Comprehensive Plan. Performance measures, as identified in the Comprehensive Plan, are
specific, meaningful, and easily obtainable items that relate to sustainability and can be reported on an
annual basis. They are intended to help assess progress toward achieving the goals and policy
direction of each major Comprehensive Plan element. {Note: The measure identified below is
specifically called out as matching the above criteria and being important to economic development
goals and will be reported annually, along with performance measures for other Comprehensive Plan
elements. It is not intended to be the only measure that the City may use for economic development
purposes.
Economic Development 116
Performance Measure: Report the number of jobs within the City each year with a goal of
reaching 13,948 jobs, excluding jobs within the resource and construction sectors, by
2035. This would require adding approximately 95 jobs annually from 2011 to 2035.
Economic Development 117