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FWCP Chap 04 Economic Development_201302271050415610CHAPTER FOUR - ECONOMIC DEVELOPMENT 4.0 INTRODUCTION The Growth Management Act (GMA) includes economic development as one of its basic goals and it is a theme that runs throughout the GMA. It considers the need to stimulate economic development throughout the state, but requires that these activities be balanced with the need to protect the physical environment. It encourages the efficient use of land, the availability of urban services, and the financing strategies necessary to pay for infrastructure. Finally, the GMA mandates that communities do their planning and then provide the zoning and regulatory environment so that appropriate development can occur. It recognizes that while the public sector can shape and influence development, it is the private sector that generates community growth. The Puget Sound Regional Council (PSRC) has also adopted region -wide goals and objectives to guide multi jurisdictional transportation and land use policies that will be implemented through local comprehensive plans. Economic development is implicit in many of the goals and objectives of VISION 2020. The VISION 2020 strategy emphasizes that continued economic stability and diversity is dependent upon public and private sector collaboration to identify needs, such as infrastructure and land, and to invest in services that will promote economic activity. VISION 2020 also emphasizes that the stability of the regional economy increases when it develops and diversifies through the retention and strengthening of existing businesses and the creation of new business. King County, through its growth management planning policies and process, re- emphasizes the economic development implications of growth management. The Countywide Planning Policies (CWPPs) promote the creation of a healthy and diverse economic climate. The CWPPs describe the need to strengthen, expand, and diversify the economy. They encourage protection of our natural resources and enhancement of our human resources through education and job training. The CWPPs also speak to the need to make an adequate supply of land available for economic development by providing necessary infrastructure and a reasonable permitting process. Within this policy framework, Federal Way has outlined a vision of its economic development future. Its vision is to transform itself from largely a bedroom -community of Seattle into a diversified, full -service, and self-contained city (Map IV-1, located at the end of the chapter). However, in doing so, it is important to remember that Federal Way is part of the larger Puget Sound economy, and therefore, this transformation will depend in large part on the market forces at work within the greater region. To achieve this vision, the City must diversify its employment base by adding more professional and managerial jobs, and by increasing the overall number of jobs in order to improve the balance between jobs and households in the City. The potential is there. Federal Way's unique location between the two regional centers of Seattle and Tacoma, both with large concentrations of population and large, successful ports, and its relationship within the Central Puget Sound region represent significant opportunities. The City is also home to FWCP — Chapter Four, Economic Development prominent regional, national, and international businesses. Headquarters for Fortune 500 corporations, such as timber giant Weyerhaeuser and internationally known World Vision, are located in Federal Way. Federal Way is also home to St. Francis Hospital, which was named one of the top 100 hospitals in America. In addition, the City holds unique regional attractions for entertainment and recreation, such as Celebration Park, King County Aquatic Center, and Six Flags Enchanted Parks/ Wild Waves. The City's economic development vision is based on the following: 1) economic and demographic analysis; 2) market analysis of long-term real estate development in Federal Way; 3) synthesis of real estate and development trends in the Central Puget Sound area; and 4) the City's vision for the future of Federal Way. 4.1 SUMMARY OF EXISTING CONDITIONS AND TRENDS General Patterns of Existing Development Previous development trends indicate that the non-residential areas of Federal Way reflect a community that has the ability to absorb higher density (more compact) uses and greater development as growth in the Central Puget Sound region continues. And even though Federal Way is a new city in a suburban area, much of its future will be tied to redevelopment and transformation. Federal Way is characterized by: • High -quality single- and multiple -family residential areas • A range of housing that includes modest homes, manufactured dwellings, and large luxury waterfront homes • Auto -oriented, suburban scale regional and community shopping centers and strip centers • Corporate headquarters • Two high -quality business and office parks —West Campus and East Campus • Little developed space for quality business, flex -tech, and office parks • Semi -rural areas, wildlife areas, truck stops, areas without utilities, and much vacant open space • Recreation/amusement parks • A waterfront primarily occupied by high -quality homes, but not particularly accessible to the public Revised 2007 IV-2 FWCP — Chapter Four, Economic Development • Many marginal commercial areas with redevelopment potential along Pacific Highway South (SR-99) that are vestiges of a prior era. Demographics Federal Way historically has been primarily a suburban, bedroom community. It has more households than jobs and as a result, provides more workers to the region than it attracts. However, since the City's incorporation, this balance between homes and jobs has shifted. Based on US Census data, the City's residential population grew by 23 percent from 67,554 in 1990 to 83,259 in 2000, while the City's covered employment has grown by 44 percent from 21,756 in 1990 (as reported by the 2001 King County Annual Growth Report) to 31,315 in 2000 (PSRC's 2000 Covered Employment Estimates). These figures indicate that during the past decade the City has begun to shed its "bedroom community" status, with more opportunities for residents to stay within Federal Way for their employment, as well as becoming more of an employment destination for residents from beyond Federal Way. The 2000 Census information shows that Federal Way's median income levels have grown substantially since 1990, with the City leading the South King County cities in the percentage of wage-earning households, as well as median household income. The 1990 Census reported median household income at $38,311. The figure grew by 29 percent over the decade leading to the 2000 census, with a median household income reported of $49,278, which is higher than the median household incomes of any of the other major South King County cities (Renton, Kent, Burien, Auburn, Tukwila, and SeaTac), as well as Seattle. Moreover, it is interesting to note that the median household income of wage-earning households (which comprise 87.3 percent of all Federal Way households) was reported at $57,748. This median household income figure is also higher than that of any of the other major South King County cities, as well as higher than the South King County's average of $55,637. Similarly, Federal Way's percentage of wage-earning households (87.3 percent) is higher than any of the other major South King County cities (which range from 79.9 to 86.8 percent). As a result, and given the City's large population, Federal Way has the highest annual gross income of any of the South King County cities. However, Federal Way and the South King County cities continue to lag behind the East King County cities in terms of median household income, which range from $60,332 in Kirkland to $66,735 in Redmond. Federal Way's Regional Role Federal Way is optimally located at a mid -point in the Seattle -Tacoma metropolitan region at the intersection of I-5 and SR-18, with easy access to the Port of Tacoma, Port of Seattle, and SeaTac International Airport. Federal Way's location is a prime asset as traffic congestion and concerns over personal and freight mobility within the region become paramount issues for commerce and industry, as well as commuters. Nevertheless, the economic boom of the past decade has largely been concentrated in the Revised 2007 IV-3 FWCP - Chapter Four, Economic Development Eastside communities, Downtown Seattle and South Snohomish County. However, with changes in the high-tech industry, increasing traffic congestion, soaring housing prices, and increasing limits to growth in those areas, the "Southend bias" may become a thing of the past, leaving Federal Way in an even better position from a regional perspective. Economic Base Federal Way's retail base is diverse and attracts customers from outside the City limits. Its market share, however, is relatively low compared to other Southwest King County communities. Although Federal Way retailers capture a good deal of the City's primary and secondary market expenditures for general merchandise and food trade, a high percentage of the local populace goes elsewhere to shop for automobiles, apparel/ accessories, miscellaneous retail purchase, building material, and furniture. Overall, the capture rate for retail sales as a function of the City's primary and secondary trade area total retail expenditures is relatively low, about 51 percent (Federal Way City Center Market Analysis, prepared by ECO Northwest, July 2002). As can be seen from the data in Table IV-], in 2006 Federal Way's strongest employment sectors were Finance, Insurance, and Real Estate, Services and Retail, which exceed the South King County -averages. The City had noticeably fewer jobs than average in the Manufacturing and Wholesale, Transportation, Communications, and Utilities sectors. Manufacturing jobs are strong in Kent, Auburn, Renton, and Tukwila. Transportation jobs are strong in Kent and retail jobs are strong in Federal Way and Tukwila. Table IV-1 2006 Employment Estimates Federal Way and King County Employment Federal Way Percentage of South King Percentage of Countywide Percentage of Category Employees Total Employees County Total Employees Total Employees Employees Employees Agriculture, Forestry 50 0.13% 1,486 0.5% 10,512 0.84% & Fishing Mining 0 0% 238 0.08% 247 0.02% Construction 1,467 3.77% 12,085 4.03% 53,201 4.23% Manufacturing 4,667 12.00% 64,192 21.42% 142,501 11.33% Transportation, Communication & 1,853 4.76% 39,491 13.18% 81,665 6.49% Utilities Wholesale Trade 1,332 3.43% 18,575 6.2% 66,811 5.31% Retail Trade 8,765 22.54% 59,503 19.85% 261,213 20.77% Finance, Insurance & 4,611 11.86% 15,603 5.21% 94,608 7.52% Real Estate Services 14,724 37.86% 75,091 25.05% 487,999 38.80% Public Administration 899 2.31% 10,295 3.43% 45,552 3.62% Non -Classifiable 410 1.05% 3,169 1.06% 13,149 1.05% Establishments Total 38,889 100% 299,728 100% 1,257,571 100% Source: South King County Economic Engine prepared by Hebert Research, Inc., September 2006 Revised 2007 IV-4 FWCP — Chapter Four, Economic Development Market Share Industrial and business park space available to rent in Federal Way is a minuscule share of the Southend/Green River/Seattle market area. The South King County industrial area (including industrial parks, business parks, and flex -tech hybrid business/office parks) is currently the strongest real estate market in Western Washington. The industrial areas of south Seattle, Green River Valley, and Fife/Tacoma constitute one of the strongest markets for industrial, warehouse, wholesale, distributing, etc., businesses in the Western United States. The City of Federal Way is in a strategic position to capitalize on these markets by providing prime office space and room for new office development, as well as quality housing. Retail and Lodging Development Developed and opened in 1975, the Commons was the primary force behind the growth of retail in Federal Way during the 1980s. After a period of some decline in recent years, the Commons is currently a prime candidate for updating, redevelopment and/or repositioning to acquire a stronger market position. In 1995, Pavilons Centre replaced the old Federal Way Shopping Center, and in 2001 the Pavilions Center Phase II came on line, with more development at that location yet to come. hi 1998, SeaTac Village was given a complete face-lift incorporating the City's commercial design guidelines. In addition, in the late 1990s, a new Walmart store moved into the City Center Frame, and there have been several renovations and remodeling of existing retail structures, including the conversion of the old Safeway building at the southwest corner of South 320th and Pacific Highway into Rite Aid and the old K-Mart into Safeway. In early 2000, a 45,000 square foot Best Buy opened in the City Center Frame and a 52,000 square foot Albertson's remodel occurred in the Community Business zone along Pacific Highway South. Between 1995 and 2000, four hotels/motels have been constructed in and around the City Center. These include Holiday Inn, Courtyard Marriott, Extended Stay, and Comfort Inn. In addition, a Holiday Inn Express and Sunnyside Motel (Travel Lodge) have been built south of the City Center along Pacific Highway. Hawthorne Suites, a 65 unit Country Inn, has been recently constructed along Pacific Highway South in the Community Business zone south of the City Center. In 2006 and 2007, that portion of the Community Business zoned area located between South 344th and South 356th and Pacific Highway South and I-5 experienced both new development and redevelopment of existing property. The Federal Way Marketplace, located north of South348th Street, was developed on a vacant 33.5 acre site. Federal Way Crossings and Lowe's, located between South 348th and South 356th Streets, were constructed on previously developed parcels 21 acres and 17.62 acres in size, respectively. The Federal Way Marketplace is a multi -tenant complex consisting of 295,000 square feet of commercial uses, including a 223,000 square -foot Wa1Mart Supercenter, banks, sit down and drive-thru restaurants, office, and storage uses. Federal Way Crossings is a Revised 2007 IV-5 FWCP — Chapter Four, Economic Development 224,500 square foot multi -tenant complex with retail, commercial, small offices, and restaurants; and Lowe's is a 169,000 square foot home improvement warehouse and garden center. Office Development Federal Way's East and West Campus Developments set a standard in the region as two of the best examples of master -planned office campuses in the Pacific Northwest. The quality of development in this area is decidedly different than elsewhere in Federal Way and Southwest King County. The majority of new office development has been located within Federal Way's East Campus, which has seen the following development: Foss Office Building at 108,000 square feet; Capital One Office Building at 143,000 square feet; and Federal Way Office Building and Warehouse at 70,767 square feet. Currently, there is an additional 105,342 square feet of office (East Campus Terrace) under construction. Since incorporation, the West Campus area has seen little new office development. Permits had been issued, but not picked up, due to rising vacancy rates. However, there has been recent increased interest in office development with an additional 27,575 square feet of office under construction in 2006-2007. In the City Center no new additional office development has occurred since the last comprehensive plan update, and office buildings continue to constitute a minority of the City Center's development. Commercial Enterprise There has been no substantive Business Park development since the City's incorporation. This lack of recent Business Park development suggests the influence of market forces outside of the City limits, where cheaper land and established industrial parks act as a draw for prospective business park development. As a result, the City has adopted a new zoning designation, the Commercial Enterprise (CE) designation, which replaces the former Business Park (BP) zoning designation. The CE designation was created in order to meet changing market conditions, as indicated by City market studies and by numerous rezone requests. The CE designation is intended to capture the demand for a diverse mix of industrial, office, and retail sales and services, arrayed in well integrated, high quality developments;. Residential use is contemplated only as mixed -use residential/commercial transitional use adjacent to single family -zoned residential areas south of South 356th Street. Residential Development One of Federal Way's strengths is the range and quality of its housing stock. The quality, quantity, and range of options for housing are major factors in business siting decisions. According to the 1990 US Census data, the median value of owner -occupied homes in Federal Way was $118,800. In contrast, the average sales price of Federal Way owner - Revised 2007 IV-6 FWCP - Chapter Four, Economic Development occupied homes in 2001, as reported by the King County Office of Regional Policy and Planning, was $194,092, with single-family homes averaging $213,060 and condominiums averaging $112,135. These figures contrast with other King County cities, as outlined in Table IV-2. Table IV-2 2001 Average Sales Prices of Owner -Occupied Homes in Ding County Place All Homes Single -Family Condos Federal Way $194,092 $213,060 $112,135 Auburn $197,965 $216,549 $124,089 Renton $215,341 $248,271 $149,608 Kent $198,844 $222,580 $142,577 Des Moines $206,379 $207,302 $202,142 Seattle $318,671 $342,922 $240,619 King County $295,158 $321,700 $198,822 As one can see from the above data, homes in Federal Way are generally more affordable than in the immediately surrounding communities and are far more affordable than homes in Seattle and the Eastside communities. While single-family houses remain Federal Way's dominant housing type, the majority of housing starts since the late 1980s were multiple -family. Multiple -family units as a percentage of all housing units increased from less than 10 percent in 1970 to nearly 40 percent in 1990. During the late 1980s, there were twice as many multiple -family housing units constructed in Federal Way than single-family housing units. From 1990 to 1992, permitting of multiple -family construction stopped, and single-family construction slowed to about one-third of late 1980 levels. It is interesting to note than in 1990 median monthly rental rate for Federal Way was $476, while the median monthly rental rate for King County communities varied between $398 and $458. That is, Federal Way's multifamily housing stock was on the higher end of cost within the region. Since then, Seattle and some Eastside locations have become particularly expensive, and Federal Way's multifamily housing stock is substantially more affordable than those locations, while averaging competitively with nearby communities, as seen in Table IV-3. Since 1996, the vast majority of multi -family housing development has taken place in the senior/assisted living market. During that time approximately 792 senior or assisted housing units have been added in the City, in addition to 240 skilled -care beds. This is compared with approximately 135 non -senior multifamily housing units. The lack of multi -family construction beyond this sub -market speaks to the recent market forces that appear to have discouraged investment in market rate multi -family development that commands lower rents than the King County average, as seen above. In order for the City to successfully encourage multi -family housing at a rate commensurate with the long range housing targets established under the GMA, City policy must address the market factors unique to this type of development activity. Revised 2007 IV-7 FWCP - Chapter Four, Economic Development Table IV-3 Average M Iti-Family Rents, Fall 2006 Place Two Bedroom/ One Bath All Units Federal Way $726 $757 Auburn $742 $768 Renton $809 $862 Kent $733 $765 Des Moines $731 $713 North Seattle $843 $791 Queen Anne $1,110 $933 Bellevue -West $1,172 $1,208 King County $868 $920 Source: Dupre + Scott 1 to 19 Unit Apartment Report, April 2006 Institutional, Educational, Cultural, and Recreational Development Federal Way enjoys a variety of affordable, high -quality health care. The City boasts three outstanding health care facilities, St. Francis Hospital, Virginia Mason Clinic, and Group Health. These facilities continue to grow and expand in the services they offer the region. Between 2000 and 2002, Virginia Mason developed a 30,000 square foot building addition, and St. Francis Hospital constructed a 62,000 square foot addition. Built in 1998, the Knutzen Family provides a venue for professional theatre and the symphony. The Federal Way Parks, Recreation, and Cultural Services Department offers a summer concert series at Steel Lake Park, which is also home to the annual Family Fest celebration. Each year, Federal Way's July 4th Red, White, and Blues festival is held at Celebration Park, where the nationally acclaimed tournament soccer and baseball facilities draw additional tourist activities. Federal Way offers a number of collegiate and vocational opportunities. Highline Community College operates a local branch campus in Federal Way. The Eton Vocation College, located in the heart of Federal Way, is a vocational college focused on job training for today's competitive market. In 2001, the DeVry Institute of Technology opened their first Northwest Campus in Federal Way. This 100,000 square foot facility provides technology training customized to increase employee workplace skills. Summary In summary, Federal Way's role in both the Central Puget Sound area and Southwest King County has been defined by its inventory of prime office space in campus -like settings, wide variety of retail and services, and large stock of quality housing. These basic sectors are enhanced by Federal Way's regional role as a center for amateur Revised 2007 IV-8 FWCP — Chapter Four, Economic Development athletics. Much of the highway oriented commercial space that was developed in the 1970s and 80s in response to rapid population growth has been starting to undergo redevelopment, and this trend will continue. The West Campus and East Campus areas serve as models for the quality of modern commercial, office, and business park space Federal Way will need in order to attract its share of future regional growth. Urban design and infrastructure in other areas of Federal Way must be brought up to these standards. In addition, the existence of large parcels of land ownership in the 344ffi/356ffi area and 3121h/324`h area of the core corridor will give Federal Way a development advantage. Federal Way will continue to foster the development of institutional and cultural amenities designed to enhance the City's regional image as a desirable community offering a high quality environment for living and working. Federal Way's Competitive Position in Southwest King County Subregion While many of the development patterns are set in the Southwest King County subregion, Federal Way and five other cities have seen, or will see, significant change. These additional five cities are Auburn, Kent, Renton, SeaTac, and Tukwila. Table IV-4 encapsulates each of these cities' current market niches, as well as their opportunities and challenges, in order to help understand how Federal Way relates to its neighbors. As can be seen in the table, much of the area surrounding Federal Way is dedicated to industrial, light manufacturing, low -scale office parks, wholesale/warehouse, distribution, etc., especially in Auburn and Kent. Much of this is not in direct competition with Federal Way. Tukwila is the major retail center for South King County and provides the region's stiffest competition for regional retailers and retail establishments, such as department and furniture stores, specialty apparel, etc. While the trade area for Tukwila's retail sector is large, Federal Way lies at the most distant point in South King County from the Tukwila/Southcenter retail center, and its trade area overlaps or competes the least with Tukwila. The City of SeaTac provides little competition in the office, industrial, and retail sectors, but has successfully captured the airport -related lodging industry, with several higher -quality establishments, including conference facilities. Renton has historically had a strong economic base tied to the Boeing Company, with both healthy manufacturing and office sectors; however, both of these sectors have seen a substantial weakening with the Boeing Company headquarters relocation, work force lay- offs, and space consolidation. Auburn and Kent have also experienced a substantial increase in vacant light -industrial building space due to Boeing Company reductions. Notwithstanding relative levels of competition from other communities in specific commercial sectors, Federal Way does experience a "competitive" relationship with several nearby municipal governments that must be taken into account. The City of Renton is a recognized leader in the county with respect to economic development, with a particular focus on downtown redevelopment and economic diversification. That city has invested public funds in land assembly projects that have attracted substantial residential, mixed -use, and auto dealership developments. Following Renton's lead are the communities of Kent and Tukwila, which have also targeted key redevelopment opportunities, acquiring/assembling land and attracting desired mixed -use development. Similarly, Renton and Kent provide tax incentives for certain residential development and Revised 2007 IV-9 FWCP — Chapter Four, Economic Development provide other financial incentives to desired redevelopment projects. In addition, Tukwila, Renton, and Kent have made substantial personnel and facilities investments in improving customer service and turn -around times associated with development permits. In addition to these five cities in Southwest King County, Tacoma is an important competitor to Federal Way. Tacoma is an older city that has made many efforts to improve its downtown and image for more than a quarter century. Tacoma city government has an aggressive economic development mission and is recognized regionally and nationally as a leader in the field. It has continually devoted its own funds, as well as state and federal grants, to stimulate economic development. Tacoma has a strategic location on the highway system and a strong port with much unrealized potential. In addition, both the city and suburbs have vacant and redevelopable land, as well as relatively cheap accessible land for residential development. Table IV-4 Summary of Economic Conditions in Southwest King County Cities Auburn Federal Way Kent Renton SeaTac Tukwila Current -Industrial areas -Regional mall -Industrial land -Business parks -Airport related -Regional retail Niche -Vacant land -West Campus -Boeing -Mid-rise office -Redevelopable land -Boeing -Regional mall -East Campus -Business parks -Mid-rise office -Redevelopable light -Weyerhaeuser Hdq -Vacant land -Mid- and high-rise industrial -Vacant land & lodging and -Mid-rise office redevelopable land conference centers -Mid-rise and high- rise lodging and conference centers Opportunities -Commuter rail -Weyerhaeuser -Boeing facilities -Boeing & -Adjacent to SeaTac -Strong retail identify -Established office, -West Campus -Commuter rail PACCAR's mfg. & Airport & concentration business parks, & -East Campus -Established office, office complex -Major HCT -Redevelopment industrial areas -Large concentration business parks & -Mid-rise buildings Stations planned potential -Cross-valley hwy of retail industrial areas -Potential -One large strategic -Location at cross - connector planned -Land assembled for -Cross-valley hwy redevelopment parcel assembled roads I-405/I-5 redevelopment connector planned areas -Future hwy — cross- -Boeing office/mfg -Central location -Strengthening -Strengthening roads (I-5 & complexes between downtown downtown SR509) from -Proximity to SeaTac Tacoma & Seattle -New Permit Center -Strong economic Seattle will open Airport & to Port of -I-5/SR 18 and investment in development focus acres for office and Seattle crossroads development -City partnership business parks -Commuter rail -HCT stations review resources with private sector unanticipated Opportunity for -City partnership in redevelopment -Permit process rec- downtown with private sector ognized for speed development in redevelopment of turnaround -City partnership with private sector in redevelopment Challenges -Distance from I-5 & -Dispersed -Industrial image -Limited retail -Adjacent to SeaTac -Limited vacant land major economic development -No prospect for attractions Airport for business & concentrations pattern HCT -Limited land for -Massive office parks -Low-scale -Not on commuter -Off-center location business & office redevelopment -Freeway access not development rail on SR 167 parks required easy or obvious -Off-center location -Small land holdings -Not anticipated to -Land assembly -Limited vacant land -Wetlands in CBD be on HCT line required -No obvious center or -Reduction in Boeing -Wetlands -Off-center cross- -Not on commuter focal point within presence; vacant -Reduction in Boeing roads (I405 & SR rail Tukwila buildings presence; vacant 167) -Limited quality -Limited quality buildings -Reduction in Boeing residential supply residential supply presence; vacant -No obvious center buildings or focal point In summary, any program of economic development for Federal Way must monitor conditions and trends in Tacoma and Southwest King County, and act decisively and aggressively to increase the City's strategic position. Revised 2007 IV-10 FWCP — Chapter Four, Economic Development Summary of Achievements Although the City of Federal Way's economic development efforts are relatively new, several important accomplishments in formulating the City's economic development strategy have already been accomplished. • The City of Federal Way/Federal Way Chamber Economic Development Committee meets monthly to discuss and develop economic development strategies and maintain a close and cooperative working relationship. • The City has developed Celebration Park which, in addition to the recreational amenities for City residents, includes tournament -quality soccer and softball facilities that attract players and tournaments from throughout the Pacific Northwest, thereby contributing substantial economic activity to Federal Way through expenditures for lodging, shopping, dining, and other services. • In 2001 the City officially incorporated an Economic Development Division within the Community Development Services Department and hired a Director. • With increasing lodging tax revenues, the City of Federal Way Lodging Tax Advisory Committee has expanded its work plan to include more direct efforts to stimulate tourism and visitorship to the City. • The City has embarked on a concerted effort, led by senior management, to improve permit processes and reduce regulatory hurdles to development. In 2001, the City worked collaboratively with the Federal Way Chamber and other stakeholders to raise the thresholds that trigger right-of-way improvements associated with redevelopment, remodeling, and reuse of existing buildings. In 2002, the City embarked upon a permit -process improvement effort that includes a public stakeholder advisory committee and study of best practices from around the region, and is intended to place Federal Way at the forefront of regional municipalities in regulating land use and construction effectively and efficiently. In 2006, the City adopted a Planned Action SEPA for a sub -area of the City Center, more specifically described as an area bounded on the north by South 312th Street, on the south by South 324th Street, on the west by Pacific Highway South, and on the east by 23rd Avenue South. The Planned Action designation applies to proposed residential, retail, office, hotel, civic, and structured parking development falling within the development envelope analyzed in this EIS. The Planned Action SEPA and increased heights for mixed -use buildings containing multi -unit housing in the City Center Core and City Center Frame adopted in 2006 is expected to encourage construction of multi -unit housing in the City Center area. Revised 2007 IV-11 FWCP — Chapter Four, Economic Development 4.2 THE ECONOMIC DEVELOPMENT VISION FOR FEDERAL WAY The vision for economic development in Federal Way can be encapsulated into four basic areas: 1) to retain existing businesses and attract new businesses in order to build a diverse economic base; 2) to increase the number of jobs within the City relative to the population of City residents within the labor force; 3) to foster redevelopment of the City Center from a low -scale, suburbanized commercial area to a full -service, high -density, mixed -use, and more pedestrian -friendly urban core and community focal point; and 4) to build upon and expand the City's recreational and cultural assets to increase visitors to the City and encourage greater visitor spending within the local economy. The strategy encourages or accelerates the trends and transformations that are already occurring in this community. The major objectives of the strategy include the following: • Provide abetter balance between housing and jobs by increasing the number of jobs within the City relative to the number of households. • Diversify the economic base by encouraging higher paying white collar and. technical jobs while preserving and enhancing the strong retail base. • Generate more demand for hotel room -nights through growth in office and business part space. • Foster horizontal commercial mixed -use employment sector growth in the South 348th Street area in the mid-term (2005-2010). • Foster continued Corporate and Office Park employment sector growth in East and West Campus in the mid-term (2000-2010). It should be noted that East Campus has recently been experiencing a high rate of growth and may reach build out during this time period. • Emphasize private redevelopment and land assembly through the I-5/SR-99 corridor, especially in the City Center, as well as the 348th and 336t1i areas. • Redevelop and improve the quality of the commercial and residential mixed use development along Pacific Highway South from South 272"d Street to South 339th Street (2000-2010). • Redevelop and improve the quality of the commercial and light industrial mixed use development along Pacific Highway South from South 339th Street to 359th South Street (2000-2010). • Foster high-rise, mixed -use employment sector growth in the City Center Core with relatively lower height and density in the City Center Frame (2000-2020). • Encourage quality development throughout the City to attract desirable economic development in Federal Way. Revised 2007 IV-12 FWCP — Chapter Four, Economic Development • Maintain and improve the quality and character of the existing residential neighborhoods. • Promote high quality, higher density residential neighborhoods in the City Center and Highway 99 corridor in close proximity to jobs and good public transportation. • Continue to work with the lodging providers to promote year-round vistorship to the City to encourage visitor spending as an important component of a growing local economy. • Work with other agencies to provide services for education and training, as well as social services and other remedial programs for the underemployed and the unemployed. Future Regional Role for Federal Way • Encourage greater diversity in the economic base by aggressive pursuit of a broader range of the components of the regional economic activity, as well as greater participation in international/Pacific Rim economic activity. • Increase its share of local resident -serving retail and services, and increase its share of regional, national, and international oriented business firms. • Increase its capture of region -serving office development. • Emphasize private redevelopment and land assembly through the I-5/SR-99 corridor, especially in the City Center, as well as the 348th and 336th areas. • Strengthen the City Center as the City's focal point for commercial and community activities. Transform the City Center into a regional commercial destination, as well as a major transit hub. • Generate more demand for hotel room -nights through growth in the commercial, office, and industrial sectors, as well as recreational and cultural amenities that draw visitors from throughout the Pacific Northwest and beyond. • Take advantage of its location with respect to the Ports of Tacoma and Seattle, as well as the SeaTac International Airport. • Public and private sectors in the Federal Way area act cooperatively and aggressively to attract firms from throughout the region, the nation, and other countries. • Actively pursue relationships with areas in other parts of the Pacific Rim region for trade, commerce, and cultural advantage. • Actively pursue cooperation and collaboration with other nearby municipalities, organizations, and firms to market Federal Way and South King County for technology -related enterprises. Revised 2007 IV-13 FWCP — Chapter Four, Economic Development Retail Areas • The Commons and other regional retailers within the City redevelop/reposition to meet changing consumer demand and become more competitive with other regional retailers. • High -volume retail in Federal Way increases faster than population. • Growth in resident -serving retail occurs in the City Center, existing commercial nodes, new nodes around the I-5/South 320'h and I-5/SR 18 interchanges, and in redevelopment areas along SR-99. • Neighborhood scale retail development keeps pace with population growth and to an increasing extent, is accommodated within mixed -use buildings in more concentrated neighborhood villages. • Pedestrian -oriented retail development emerges gradually in the redeveloped City Center. • Small amounts of retail use occur on the ground floor of offices, residential buildings, and parking structures. • Neighborhood scale retail development in concentrated neighborhood villages emerges in response to growth in multiple -family concentrations in the I-5/SR-99 corridor and new single-family development on the east side of I-5. • Old, outdated strip centers along the SR-99 corridor redevelop as a mix of retail, office, and dense residential uses. Office Development • Offices of regional, national, and/or international firms locate in West Campus, East Campus, and the City Center. • Garden, high-rise, and mid -rise office space, and modern light -industrial buildings increase rapidly in areas with land assembled for business parks and in redeveloped retail areas. • Office development is integrated with retail, residential, or business parks. • Federal Way attracts more corporate regional headquarters and regional offices. • Smaller, older, outdated office structures are replaced with newer uses. • Integrated, campus -like high amenity areas are encouraged for corporate headquarters and modern research/development of high technology uses east of I-5. Revised 2007 IV-14 FWCP — Chapter Four, Economic Development • Development of technical and research space increases in East and West Campus. • Federal Way attracts more high-tech firms and firms whose business is related to high-tech industries. Commercial Enterprise Development • Areas designated Commercial Enterprise contain a mix of uses in and among buildings as dictated by the market for high quality space. • The Commercial Enterprise zoning designation is intended to meet changing market conditions and make the development land in this zone more economically viable. Residential Areas • High quality residential areas are important for attracting and retaining businesses. • A range of housing types, densities, and prices allow the broad spectrum of employees to live near their work and recreation. The City of Federal Way encourages integration of high density housing with retail and other uses, especially along SR-99, north of South 339`h Street, and in the City Center. Institutional, Educational, Cultural, and Recreational Development • The City of Federal Way will continue to work closely with existing institutional entities (such as St. Francis Hospital, Federal Way School District, King County Library, etc.) as important components of a full -service local economy. • Federal Way's reputation as an important center for amateur sports competition and participation grows stronger, leading to potentially new facilities and venues, as well as increased visitorship and visitor spending in the local economy. • Federal Way's cultural assets increase in both scope and number, gaining greater patronage and attracting visitors from beyond the City limits. New cultural establishments are developed in Federal Way, such as museums, exhibitions, and performance venues. Likewise, new cultural events become established in Federal Way, such as music festivals, art shows/festivals, etc. • Stimulate quality development of region -serving institutional and technical facilities. • Existing recreational amusement facilities continue to develop as regional tourist attractions. Revised 2007 IV-15 FWCP — Chapter Four, Economic Development • The City of Federal Way creates working partnerships with institutions of higher education in order to encourage and support their expansion and further integration within the Federal Way economy, as well as to identify and exploit increasing opportunities for economic development. 4.3 FORECAST OF ECONOMIC GROWTH IN FEDERAL WAY The growth forecasts used in this chapter are derived from the 2000 Market Analysis and 2002 City Center Market Analysis, prepared by ECONorthwest, while other chapters are based on the PSRC regional forecasting model. In summary, probably the strongest sector in the near -term (five years) will be the retail/ services sector. About 1.5 million additional square feet of retail tenant space may be expected during the next 20 years, with commercial areas throughout the City and the City Center alike sharing in the development. One particular sector that appears under- represented is the quality restaurant sector, in which the City will likely see additional development. Demand for new office development will likely be somewhat low in the near term, as office vacancies have risen substantially and rents have correspondingly fallen, region - wide. In addition, several office buildings, particularly in the West Campus area, exhibit substantial vacancies that can readily absorb near -term demand in the City. Nevertheless, the long-term picture looks good, with continued demand for and interest in office space in Federal Way, particularly in the East and West Campus areas. City Center office development will likely lag behind for most of the planning horizon. However, generous zoning, panoramic views, and proximity to the freeways and transit may start to make the City Center a more attractive location for mid- to high-rise office development in the 10 to 20-year time frame. With regard to housing, only a small amount of land remains in the single-family zoning districts to accommodate new single-family dwellings. As a consequence, the vast majority of new residential development will have to take the form of townhouses, small lot subdivisions and cottage housing, walk-up apartments, mid -rise apartments, and mixed -use buildings and/or high-rise residential buildings. As with the condition for single-family development, the majority of the multi -family -zoned land is also already developed, leaving primarily the commercial zones and City Center as the potential location of a great deal of the future residential development. Nevertheless, higher land values and construction costs, and lower relative rental rates compared with other communities in the region, act as barriers to residential development within the City Center in the near term, unless public -sector actions create financial incentives, reduce development costs, or otherwise create conditions attractive to housing developers. Therefore, in the short term, most multi -family housing developments will -continue to be seen in the remaining multifamily -zoned areas and in the neighborhood commercial areas or other commercial areas along Pacific Highway South. While multi -family housing is generally not permitted in the -Commercial Enterprise zone, this zone can accommodate some transitional residential/commercial uses adjacent to established single family -zoned Revised 2007 IV-16 FWCP — Chapter Four, Economic Development residential neighborhoods. In the longer term, assuming no public -sector incentives, as rental rates rise and demand increases, housing developers will likely respond to the opportunities for development within the City Center, and begin to add multi -family housing there, as well. Substantial new lodging development in Federal Way is not anticipated in the near term, unless actions are taken to increase demand substantially. With business travel somewhat cut back due to increasingly burdensome airline -travel procedures since September 11, 2001, the demand for hotel rooms has dropped. Business -related travel may be slow to return to earlier levels. Sports -related lodging demand during the late Spring, Summer, and early Fall has been solid over the past few years and is expected to increase, although development of new lodging facilities will likely not follow increased demand during only a few months of the year. If sports- or event -related facilities are developed within the City that could accommodate off-season events, it is likely that more near -term demand for lodging would rise and could occasion development of new facilities within the five-year timeframe. Like all forecasts, these should be periodically monitored relative to the real estate market and economic conditions in South King County, the Central Puget Sound region, and Federal Way. In addition, the economic development policies and underlying assumptions related to local and regional decisions concerning infrastructure, transportation systems, and land use regulation should be carefully monitored. 4.4 IMPLEMENTATION Attributes of Successful Economic Development Programs Successful economic development programs typically have the following attributes. First, they receive material support and leadership from the mayor, City Council, and senior City staff. Second, the municipal leadership is willing to work creatively and cooperatively with private sector leaders and businesses to accomplish economic development goals. They have the ability and find the resources to target infrastructure projects and programs to encourage development or redevelopment of specific areas. To do this, they work aggressively to secure state and federal funds for local public and private assistance. Likewise, City staff is empathetic toward economic development goals and knowledgeable about working within City legal constraints, budget constraints, and community tolerances to assist businesses and the real estate development process. The staff also has the ability to react and make decisions quickly and consistently to provide assistance for private sector dealings with the public planning and regulatory processes. The staff's ability to link several programs, team up with other departments, and leverage limited funds allows them to take meaningful and effective action. hi addition, the City should be creative and open to exploring and adopting innovative regulatory and incentive programs to attract and retain businesses and development projects, such as SEPA planned actions and developer agreements. Key among such programs should be any feasible efforts aimed at predictable and streamlined permitting processes. Revised 2007 IV-17 FWCP — Chapter Four, Economic Development The City's Role in the Economic Life of a Community In the State of Washington, the direct actions that cities can take to encourage economic development have historically been more limited than in other states. Nevertheless, in the past few years several new and important tools have been made available to local communities to help encourage redevelopment, retain/attract jobs, and foster "smart growth." These tools include: • Community redevelopment financing (similar to tax increment financing) • Limited tax abatement for multifamily development • Community empowerment zone designation • Community renewal act (updated and expanded version of former urban renewal) • Tax deferrals and exemptions for high technology businesses and investment, as well as manufacturing investment • Industrial revenue bonds Notwithstanding these state programs, there are still substantial constraints on the scope of actions a city government can do with respect to economic development activities. However, one of the most significant direct actions a city can take is to provide the necessary infrastructure. This includes: 1) developing long term facilities expansion plans; 2) designing the specific systems and projects; 3) raising or borrowing local funds to finance the projects or act as a conduit for state, federal, and intergovernmental funds; and, 4) forming public -private partnerships to jointly construct projects. Second, a city can deliver high quality and cost effective urban services. These necessary services include police and fire protection; parks, recreation, and cultural services; social services and job training; and a well -run land use planning and regulatory process. In addition, a city can actively participate in public/private groups designed to help businesses and the development community as they work their way through the state and federal regulatory processes. Third, a city can directly impact economic development by doing market research or by being a landowner and developer. For example, a city could develop, maintain, and disseminate data and analysis on local development conditions and trends, as well as monitor important trends and assumptions upon which plans, programs, and strategies are based. In addition, a city can buy land, aggregate parcels, and make necessary improvement so that it is ready for new development or redevelopment. For some projects, a city can issue industrial revenue bonds or other tax-free municipal bonds. This also allows a city to joint venture with a private sector partners for appropriate development. In terms of indirect roles, a city can act as a facilitator to convene public and private entities to work on issues of local importance and reach consensus. Preparation of a comprehensive plan is an example of this important indirect action. A city can act as a Revised 2007 IV-1 S FWCP — Chapter Four, Economic Development representative of local resident's and business's interests in resolving regional and countywide problems such as traffic congestion, housing, and human service issues. A city can also mobilize local community support for important projects and problem solving; and work to improve the overall image of the community and in doing so, make the community more attractive for economic development. Lastly, a city's public investment in municipal facilities, such as city administrative offices, judicial/court facilities, community centers, and cultural and recreational venues can be a factor in inducing further economic development. By targeting a subarea for an infusion of redevelopment investment and daytime population, nearby businesses not only may see a greater captive market, but may also be encouraged to remodel, renovate, and/or improve their establishments. Cultural and recreational facilities can have a wide range of economic impact, from simply attracting residents to a particular part of the city (e.g., city center) more frequently where they may patronize other businesses, to attracting visitors from around the region and country who will bring new revenue to the local economy through lodging, restaurant, and goods/services expenditures. General Approaches to an Economic Development Strategy There are basically four local economic development strategies that impact the level of private business growth in a community. First, studies of employment growth experience in local communities in the United States show that the large majority of new jobs are generated by expansion and retention of businesses that are already located in the community. A city's role in this strategy is to help businesses resolve problems so that they can expand locally rather than move to another community. Problem resolution includes helping a business find a larger more suitable site, work through a land use or zoning regulation problem, or access necessary infrastructure. This strategy typically has low to moderate cost implications and a high probability of success. Second, the relocation of firms from other parts of the country or new plant locations are rare and do not account for a significant share of local employment growth relative to overall employment growth in the United States. However, when new firms do relocate to the community, the boost in the local economy can be great and the "press" can attract the attention of other firms. Local governments can attract new business to their community through aggressive marketing strategies (websites, brochures, etc.), close collaboration with regional economic development councils and chambers of commerce, and through financial incentives. This strategy has high risk for the number of successes and has a high cost. Third, new businesses that are the result of new business start-ups, spin-offs from existing local firms, and new business ideas and technologies are another effective way that communities increase employment and businesses within a local area. Local government encourages new business formation usually through indirect methods. These strategies can have moderate -to -high costs depending on the specific actions and low -to -moderate degree of success. Revised 2007 IV-19 FWCP — Chapter Four, Economic Development Fourth, tourism and visitorship can be very important components of a local economy. A city with recreational or cultural assets that draw visitors can build upon these assets to increase the numbers of visitors, the length of their stays, and the amount of money they spend in the local economy. Local government can work to market the community and its assets beyond the immediate region to bring in new economic activity and can invest in recreational or cultural infrastructure to attract more events and/or visitors. Human Resource Programs In addition to the economic development strategies discussed in the previous section, human resource development programs are another general way whereby cities can support economic development. These programs are often not included as parts of an economic development program because they focus on assisting people —the human resource for businesses. However, improving and remediating human resources is an important long run approach. The previous four general approaches to economic development strategies try to raise revenues, reduce costs, or reduce risks for business location, facility investment decisions, and operating decisions of businesses. Human resource programs make a community attractive to new and existing businesses by improving the local labor force. Components of a human resources program may include: 1) providing temporary support for underemployed workers, unemployed workers, and their families; 2) providing job training and retraining to improve an individual's ability to enter or remain in the work force; 3) creating referral and other programs that allow labor resources to become more mobile and to respond to information about job openings; and, 4) by providing social service programs that meet the needs of community residents who are temporarily not able to participate in the economy. In many instances a City's human resources program addresses some, if not all, of these human resource development objectives. Economic Development Strategy For Federal Way As with many cities, Federal Way will have limited funds with which to pursue its economic development goals. The City will have to use its resources in a focused and prioritized manner to have a positive impact on the local economic base. Table IV-5 summarizes how Federal Way will implement an appropriate economic development strategy. Table IV-5 Economic Development Areas and Actions Sub Area of Who Initiates What Land Uses Are How Are They Federal Way Action Encouraged Encouraged Reasons Timing PRIMARY ECONOMIC AREAS City Center Public w/ Mid/high-rise office. private High -density MF support. residential. Civic/cultural, recreational Pedestrian -oriented retail. Sound Transit Station. To increase capture of Emphasis 5-10 In -fill infrastructure. regional growth. (20) years. Public amenities. To provide community Market amenities and assets focal point/core. Potential tax incentives. To obtain more full -range SEPA Planned Action. of goods/ services in City. Revised 2007 IV-20 FWCP — Chapter Four, Economic Development Sub Area of Who Initiates What Land Uses Are How Are They Federal Way Action Encouraged Encouraged Reasons Timing PRIMARY ECONOMIC AREAS 339t'to 359s/ Public w/ SR99 and I-51 private SR 18 support. interchange West Campus Current landowners. Mix of low-rise office, retail & light industry. "Big box" retail. Buildout & maintain quality. East Campus Weyerhaeuser High -quality corporate & Corp. office parks. 336'' linkage: Public w/ High density MF. four primary private Low rise office. economic dvpt support. Supportive retail. areas. Public amenities. Old Hwy 99, Public w/ north of South private 339`' outside of support. main economic areas. High capacity & business related. High density MF residential. Low rise office. Auto -oriented retail. Neighborhood commercial. Regulations that encourage high -quality design. Aggressive infrastructure investment. Large land assembly. Facilitate buildout through predictable, efficient permitting process. Assist maintenance of infrastructure and public areas. Predictable, efficient permitting process. Assist maintenance of infrastructure and public areas. Land use & capital improvements for gradual redevelopment/in-fill. Transportation infrastructure. Land use & capital improvements for gradual redevelopment & in -fill. Aesthetic improvements through sign code and urban design guidelines. Economic Development Goals Large parcels allow this subarea to respond to the market for business & industrial park uses in Southwest King County. One of the City's prime commercial amenities as one of the highest quality master planned developments in the Pacific Northwest. One of City's prime commercial amenities. Large landownership with vision, resources, & track record can attract major investors. Emphasis 0-5 (10) years. Ongoing in response to market. In response to market & corporate actions. Provide housing & As appropriate support services for for market. economic areas. Provide a range of As appropriate housing & support for market. services & retail for economic & residential areas. The City of Federal Way will not wait for market forces to create the future, but will act to shape and accelerate the evolving market trends in the direction of its vision. The City will pursue the following goals to implement economic development. EDG1 The City will emphasize redevelopment that transforms the City from a suburban bedroom community to a full -service community with an urban core. EDG2 The City will encourage concentration of non-residential development into four primary areas: • High -density mixed -use development in the City Center (312th and 320t", SR-99 to I-5) • A mix of commercial, office, retail, and light industrial development in the area around 348th and SR-99 and around the I-5/SR 18 interchanges • High -quality office park development, including corporate headquarters, continued in and around West Campus • High -quality office development, including corporate headquarters in a park -like campus setting east of 1-5 Revised 2007 IV-21 FWCP — Chapter Four, Economic Development EDG3 The City will help facilitate redevelopment of existing commercial centers in the SR-99 corridor, north of South 339th and the 3361h area between West and East Campus. EDG4 The City will channel further residential growth into existing multi -family and commercial -zoned areas, with a particular goal of encouraging residential development in the City Center. EDG5 The City will encourage and support the development of recreational and cultural facilities and/or events that will bring additional visitors to Federal Way, and/or increase visitor spending. EDGE The City will encourage and support existing businesses to remain and/or expand their facilities within Federal Way. Economic Development Policies EDP1 Redevelopment of the City Center will continue to receive special attention in the FWCP. EDP2 The City will continue to seek high -quality urban design and infrastructure standards for these areas. EDP3 The City will utilize the SEPA Planned Action for the City Center so that compliant development proposals may receive permit approvals with a minimum of environmental review. EDP4 The City will complete designs for public infrastructure to be jointly funded by the City and private landowners. EDP5 The City will work actively to formulate ways for joint public/private funding of infrastructure. EDP6 The City will develop zoning, permitting, and potential financial incentives that encourage prioritized development consistent with comprehensive and subarea plans and orderly, phased growth. EDP7 In order to encourage efficient and desired development and redevelopment of existing land designated and zoned for various types of commercial uses, when considering proposals for comprehensive plan amendments and rezones to commercial designations and from one commercial designation to another, the City will consider development trends in commercially zoned areas, market demand for various types of commercial land, and amount of vacant commercial land. EDP8 The City will utilize innovative planning techniques such as Planned Unit Developments, and developer agreements to aid in efficient and predicable permitting for large developments. Revised 2007 IV-22 FWCP — Chapter Four, Economic Development EDP9 The City will explore innovative financing techniques such as Local Improvement Districts, Industrial Revenue Bonds, and other innovative financing tools to encourage desired redevelopment. EDP10 The City will work with the private sector to actively encourage the retention and expansion of existing businesses, as well as bring in new development, businesses, and jobs to the community. EDP11 The City will promote the community by working with the Federal Way Chamber and the private sector to develop marketing tools that attract new businesses, visitors, and investments. EDP12 The City will continue to manage an economic development web page that promotes business and development within the community, provides an interactive database of information of value to businesses and developers, and involves the participation of the Federal Way Chamber and other stakeholder groups. EDP13 The City will fund its portion of the public/private groups to allow them to do an effective job in marketing the community. EDP14 The City will continue to utilize design guidelines to enhance the urban environment to retain and attract businesses and residents. EDP15 The City will continue to implement a streamlined permitting process consistent with state and federal regulations to reduce the upfront costs of locating businesses in the City. EDP16 The City will continue to pursue aggressive public safety programs designed to protect residents, businesses, and their investments. EDP17 The City will encourage strong public and private leadership to solicit community support for internal and external funding assistance. EDP18 The City will periodically monitor local and regional trends to be able to adjust plans, policies, and programs. EDP19 The City will actively work with representative groups of business and property owners, including the Federal Way Chamber and other local business associations, to enhance citywide and subarea improvements and planning. EDP20 The City, in conjunction with the local business community, will actively pursue ties to Pacific Rim nations and businesses to stimulate related business activity. EDP21 The City recognizes the importance of cultural and recreational activity to its economy and through the Arts Commission and Parks Department will pursue joint ventures with private groups and individuals in developing cultural and recreational opportunities. Revised 2007 IV-23 FWCP — Chapter Four, Economic Development EDP22 The City will encourage the expansion of existing and development of new multi -purpose facilities to host cultural and recreational activities in order to increase the number of visitors to Federal Way and resultant visitor spending. EDP23 The City will continue to market the community for, and encourage development of, businesses in the high-tech sector. This effort will include exploration of regulatory and/or financial incentives to attract high-tech businesses and collaboration with regional communities, businesses, and local institutions of higher education to promote Federal Way and South King County. EDP24 The City of Federal Way will strive to create working partnerships with institutions of higher education in order to encourage and support their expansion and further integration within the Federal Way economy, as well as to identify and exploit increasing opportunities for economic development. EDP25 The City will consider opportunities to partner with local human -service organizations to assist in providing human resources development programs for unemployed or under -employed workers. The foregoing policies will assist the City of Federal Way to pursue an accelerated transformation toward the community's vision of its future. Table IV-6 describes the four major employment, economic activity areas of the City that will receive the bulk of future commercial and industrial development. The table summarizes the characteristics, location, and planning process required as well as the major transformation required. The major public and private actions required for each area are listed. The Land Use and City Center chapters of the FWCP describe these four areas in more detail. Table IV-6 describes the current ownership pattern and major activities where the City will act affirmatively to transform these areas so that an increased share of regional growth will be attracted to the City. In the areas of multiple ownership and control, implementation of the community's vision will require more explicit effort and resources from the City government. Both West and East Campus have, or will develop, their own high standards for quality of the new development. The type of development expected to occur in each of the four major economic sectors important to Federal Way's vision is related in Table IV-7. Also related in the table are who the main competitors will be for each of these four areas. The land use policies and regulations for each area should accommodate and encourage these activities. These policies and regulations are discussed in the Land Use, City Center, and Transportation chapters of the FWCP. Revised 2007 IV-24 FWCP - Chapter Four, Economic Development Table IV-6 Development Zones: Description Vertical Mixed City Center Master -Planned Mixed Campus Master Planned Corporate Campus Horizontal Mixed -Use Commercial Enterprise Area 312t/320t" West Campus East of I-5 344t/356t" Ownership Diverse Diverse Single Diverse Planning Joint Public/Private Private Emphasis Private Emphasis Joint Public/Private Major Transformation Activity Increase office and residential sectors in mixed -use buildings Infill and continue trend since 1974. Vacant to high quality corporate headquarters & high tech. Scattered industrial retail office to quality mixed used. Major Public Actions Comprehensive Plans X X X X Subarea Plans X Private Private X Planned Action SEPA X Design Standards X X X X Environmental Impact Analysis X X X X Infrastructure Planning X X X X Infrastructure Design X Private Private X Financing Joint Private Private Joint Examples Seattle CBD Burnaby BC Bellevue Vancouver, WA Walnut Creek, CA Scottsdale, AZ West Campus High Tech Corridor Redmond Willows Road Harbor Pointe I High Tech Corridor Renton Tukwila Kent Auburn JLynwood C=City initiates and leads action Revised 2007 IV-25 FWCP — Chapter Four, Economic Development Table IV-7 Cones and Land Use Market Segment Characteristics Current Competitive Vertical Mixed Master -Planned Master -Planned Horizontal Mixed -Use Examples City Center Mixed Campus Corporate Park Commercial Enterprise RETAIL High Cube Freeway access Moderate amenities 348th & SR18 High Volume Cheap land/space X Locates retail, office or light industrial areas Festival High density population & employment Pike Place Market Regional draw Bellevue Square X Retail & restaurants Westlake Center Mall stores Edmonds LaConner Employment & Resident High auto or pedestrian traffic Southcenter X X X X Supporting Tacoma Mall Auburn Mall Rapidly growing population Southcenter Mall -like Freeway access Tacoma Mall X Hotel Serves employment centers SeaTac Tacoma X X Provides meeting space Tukwila OFFICE Garden Heavy landscape Low pedestrian levels Older Bellevue Low/moderate in/out traffic Redmond Small business/professional & business services, X X FIRES Renton & Tukwila along Serves local & regional business arterials Auto oriented Residential areas close Mid -rise Larger tenants, sub -regional & regional Bellevue Tukwila Moderate landscape Renton Lynnwood Small/medium business services, medial/dental Queen Anne Factoria X X X X FIRES Lake Union Tacoma Branch offices Moderate in & out Elliott Way Surface parking or on deck Some transit Freeway interchanges High Rise/Higher Pedestrian traffic High amenities Seattle Public transit Larger businesses Bellevue Moderate traffic Professional services Tacoma X X Headquarters, branch offices Regional serving FIRES Underground or deck parking BUSINESS PARKS Auto/truck oriented Distribution & service High Tech Corridor Cheap land Warehouse/retail Eastside Lynnwood Employment density Government offices Renton X X Manufacturing assembly Office local/regional Tukwila Professional & business service Kent Revised 2007 IV-26 Bainbridge ��- Redmond City of Federal Way E/liou I-aki Comprehensive Plan Island Bu1, Bellevue r Southwest King & Bremerton Blake Mercer North Pierce County Island • Seattle Island � - o Sub -region )• — Issaquah Economic Development Element Puget K I t s a p Vashol Sound Renton Q...i, _ � Legend: ' � �. Co u n t y Island Burien © % K i n g City of Federal Way / I Other Incorporated Area Maury C o u n t Unincorporated Areas r Island Kent 6�_ Gig Federal' Harbor \w Fox Island ru\`ay Tacoma �-- University Place v Lakewood P i e r c e County Auburn Puyallup -_ �a Scale: 0 2.5 5 10 N Miles Map Revised: October, 2006. Source: City of Federal Way, King County Federal way MAP IV-1 Note: This map is intended for use as a graphical representation only. The City of Federal Way makes no warranty as to its accuracy.