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2022 10-19 Planning Commission Agenda PacketCommissioners City Staff Lawson Bronson, Chair Wayne Carlson, Vice-Chair Keith Niven, Planning Manager Tim O’Neil Hope Elder Kari Cimmer, Admin & Permit Center Supervisor Diana Noble-Gulliford Tom Medhurst 253-835-2629 Jae So Anna Patrick, Alternate www.cityoffederalway.com Vickie Chynoweth, Alternate Vacant, Alternate K:\01 - Document Review\Planning\Planning Commission Documents\2022 10 October 19\2022 10-19 Planning Commission Agenda.docx City of Federal Way PLANNING COMMISSION October 19, 2022 City Hall 6:00 p.m. City Council Chambers AGENDA 1. CALL TO ORDER 2. ROLL CALL 3. APPROVAL OF MINUTES a. Planning Commission Meeting of October 5, 2022 4. PUBLIC COMMENT 5. COMMISSION BUSINESS a. Response Memo from the Economic Development Goals Meeting on September 7, 2022 b. Review of proposed revisions to the Comprehensive Plan Economic Development Chapter, Policies 6. STAFF BUSINESS a. Manager’s Report 7. NEXT MEETING a. November 2, 2022 – Public Hearing 8. ADJOURNMENT Planning Commission meetings are held in-person. To request accommodation to attend or to provide public comment virtually, please contact Kari Cimmer at 253-835-2629 or karic@cityoffederalway.com, no later than 5:00 p.m. on Tuesday, October 18, 2022. Page 1 of 15 Planning Commission Minutes Page 1 October 5, 2022 CITY OF FEDERAL WAY PLANNING COMMISSION October 5, 2022 6:00 p.m. City Hall MEETING MINUTES 1. CALL TO ORDER Chair Bronson called the meeting to order at 6:00 p.m. 2. ROLL CALL Commissioners present: Lawson Bronson, Hope Elder, Tim O’Neil, Wayne Carlson, Diana Noble-Gulliford, Anna Patrick, and Vickie Chynoweth. Chair Bronson excused Commissioners So and Medhurst. City Staff present: Planning Manager Keith Niven, City Attorney Kent van Alstyne, Associate Planner Evan Lewis, and Admin & Permit Center Supervisor Kari Cimmer. 3. APPROVAL OF MINUTES Commissioner Elder moved to approve the September 7, 2022 minutes as submitted. Second by Commissioner Carlson. 4. PUBLIC COMMENT No Public comments. 5. COMMISSION BUSINESS Planning Manager Niven opened up the briefing of the 2022 City Code Amendments. He outlined the eleven items in the 2022 “Snowball” City Code changes that will move forward and noted that these type of code updates will be an annual process. He proceeded to brief the Commissioners on the first nine code updates with the last two code change briefings to follow his presentation. Commission members requested additional information on wetland buffers that are currently interrupted by existing improvements, the current process for Boundary Line Adjustments, and how the AMI vs. County Median Income changes the City’s overall affordability numbers. Staff to provide responses. Mr. Niven introduced Associate Planner Evan Lewis who would present findings and code change recommendations for Mobile Food Vendors (Food Trucks/Carts). Commission members requested additional information on if the current definition of Class 1 mobile vendors would allow a vendor to operate on several single-family site per day or month, if our current or proposed food truck review process includes checking with Labor & Industries, and to confirm mobile beauty shops, pet Page 2 of 15 Planning Commission Minutes Page 2 October 5, 2022 grooming, massage parlors, bikini barista trucks will not be allowed under this change, and that current code does not make it more difficult to operate at Farmer’s Markets. Staff to provide responses. Planning Manager Niven presented the proposal on Iconic Signs and requested feedback regarding this proposal. Commission members requested additional information on Iconic Sign size limitations, whether the code will allow for barbershop poles and similar signs, and asked staff to verify that if the code language is too vague, and, if so, does it leave the City open to liability? Staff to provide responses. 6. MANAGER REPORT Planning Manager Niven showed a conceptual drawing of the TC-3 project. Mr. Niven was asked by the Commission to confirm which aspects of the project will be privately- vs. City- financed. Additionally, Commissioners requested copies of a 2021 economic development study regarding the feasibility of a hotel and requested clarification of the construction setbacks for the future use of the Steel Lake Annex property. Mr. Niven to provide responses to these questions. At the next meeting, the Policies section of the Economic Development chapter of the Comprehensive Plan will be reviewed. 7. NEXT MEETING The next meeting of the Planning Commission will be held at 6:00 p.m. on October 19, 2022 . 8. ADJOURNMENT Commissioner O’Neil moved that the meeting be adjourned; Second by Commissioner Carlson. The meeting adjourned at 8:09 p.m. Attest: Approved by Commission: _______________________________________ __________________ Kari Cimmer, Admin & Permit Center Supervisor Date Page 3 of 15 33325 8th Avenue South Federal Way, WA 98003-6325 253-835-7000 www.cityoffederalway.com Jim Ferrell, Mayor MEMORANDUM DATE: 21 September 2022 TO: Federal Way Planning Commission FROM: Brian Davis, Director Keith Niven, AICP, CEcD, Planning Manager SUBJECT: Response Memo – Economic Development Goals conversation The planning commission received a briefing on the proposed updates to the Economic Development chapter of the Comprehensive Plan on September 7, 2022. The following represents staff’s response to the comments given by the Commission: Propose new Goal EDG 13: (rework of previous EDG 3) Work with Federal Way property owners to provide jobs for the next generation. Propose new Goal EDG 14: Promote a comprehensive approach working with City departments and business owners to strengthening the City’s business districts as clean, safe, walkable, and attractive environments. Propose new Goal EDG 15: Explore models for expediting the permitting process for targeted projects. Page 4 of 15 ED - 1 CHAPTER FOUR – ECONOMIC DEVELOPMENT 4.0 INTRODUCTION Economic Development is the creation of wealth from which community benefits are realized. It is more than a jobs program, it’s an investment in growing the local economy and enhancing the prosperity and quality of life for all residents. Economic development is a concerted effort on the part of the city to influence the direction of private sector investment toward opportunities that can lead to sustained economic growth. Sustained economic growth can provide sufficient incomes for the local labor force, profitable business opportunities for employers and tax revenues for maintaining an infrastructure to support this continued growth. There is no alternative to private sector investment as the engine for economic growth, but there are many public initiatives that can support and encourage investments where the community feels they are needed the most. Economic development is purely and simply the creation of wealth in which community benefits are created. Federal Way recognizes five primary approaches to enhance local economic development. They are:  Business Retention and Expansion – providing support and assistance to existing businesses  Business Attraction – attracting new business  New Business Creation – encouraging the growth of new businesses  Placemaking – investing in community assets, inspiration, and potential with the intention of creating public spaces that promote people's health, happiness, and well-being.  Tourism – according to the World Bank, is estimated to contribute approximately 10 percent of global gross domestic product (GDP), and to is the largest contributor to employment worldwide. Based on the City’s Economic Development Strategy (Some Assembly Required, 2015), its mission is “to produce solutions to attract and retain businesses, jobs, and investments, along with improving the tax base and enhancing the quality of life in Federal Way.” This Chapter identifies the Goals, Policies and Actions the City should take to help guide Economic Development over the next 20 years. 4.1 EMPLOYMENT The City’s comprehensive plan is required to be consistent with the Growth Management Act (GMA), Puget Sound Regional Council goals and policies of Vision 2050, and the King County Countywide Planning Policies (CPPs). As part of the Planning process, the city is given Growth Targets for Housing and Employment. These Targets are forecasts that come to each county from the Washington Office of Financial Management. King Page 5 of 15 ED - 2 County then goes through a process to allocate the county totals to the cities and unincorporated portions of King County. For the last growth period (2006-2035), Federal Way was forecast to grow by 14,268 jobs. The forecast for the 2024-2044 period is 20,460. The 2006 to 2018 actual growth and the forecast of the new jobs is illustrated in Figure ED-1. Figure ED-1 (Employment Growth Target) Sources: Job Growth – WA ESD, GMA Targets – King County. Actual Forecast 1 (2006-2035) Forecast 2 (2024-2044) 2006 31,616 31,616 2018 31,148 36,588 2021 31,618 41,560 31,618 2035 46,352 41,848 2044 52,078 Much of the reason for the modest increase in employment over the previous Planning cycle is due to the exodus of the Weyerhaeuser corporate headquarters to Seattle. Although there have been some recent employment gains (notably: DaVita, Smith Brothers, and All-City Fence), the City will need to reassess its strategies moving forward if it expects to reach its Target of growing over 14,000 new jobs in the City in the next 20 years. In looking at the current clusters of jobs in the City (Figure ED-2), Healthcare, Education, and Retail are the top 3 employment sectors in the City. Page 6 of 15 ED - 3 Figure ED-2 (Employment Sectors) Industry Jobs % of Total Healthcare & Social Assistance 5,511 17% Educational Services 5,169 16% Retail Trade 3,808 12% Government 3,304 10% Accommodation & Food Services 3,224 10% Arts, Entertainment, Recreation 2,745 9% Administrative & Support 1,147 4% Management 1,032 3% Finance & Insurance 1,022 3% Construction 1,001 3% Professional, Scientific & Tech Services 935 3% Wholesale Trade 645 2% Real Estate 635 2% Other 1,440 5% Total 31,618 100% Source: WA ESD 4.2 BUSINESS RETENTION & EXPANSION Business Retention & Expansion (BRE) is an economic development strategy that promotes business growth, capital investment, and job creation by connecting local business owners with the resources they need to succeed. BRE requires proactively connecting with existing businesses to understand and respond to their needs. Those connections identify issues, and provide increased opportunities to help existing businesses expand or, if they are at risk of closing or relocating, stay open and stay in the community. Too often the sudden closing of a long-time business surprises residents and local officials alike who assume a business is doing fine simply because the doors remain open each day. 4.3 BUSINESS ATTRACTION When Weyerhaeuser moved its corporate headquarters to Seattle in 2014, Federal Way lost its largest employer and approximately 1,500 jobs (Seattle PI). The campus was sold to IRG and warehousing/distribution facilities have been built. Trying to attract a new corporate headquarters to our community is resource intensive and competitive. A focused and targeted approach is needed to identify and generate potential business investment leads. There are generally-accepted steps for successful business attraction efforts. These steps include: 1) Economic Development Website 2) Community and Economic Development Brand 3) Develop a List of Companies to Target Page 7 of 15 ED - 4 4) Contact Prospective Investors 5) Maintain Relationships with Prospective Investors Although the City currently has an Economic Development website, the page could use some additional data regarding the City and the local business climate. In addition to refreshing the City’s webpage, Steps 2-5 would need commitment from the City for Federal Way to compete with other communities for landing a relocated business. 4.4 ECONOMIC GARDENING Economic gardening is an entrepreneurial approach to economic development that seeks to grow the local economy from within. Its premise is that local entrepreneurs and microbusinesses create the companies that bring new wealth and economic growth to a region in the form of jobs, increased revenues, and a vibrant local business sector. Economic gardening seeks to focus on growing and nurturing start-up and small local businesses. To support the entrepreneurial community, a network of resources needs to be built to provide access to tools, knowledge, and experience that students and entrepreneurs need to go from idea to working business in a successful, sustainable manner. Creating a network that provides access to knowledge and experience; access to finance and funding opportunities; and, access to low-cost space is vital to the success of small and fledgling businesses. 4.5 PLACEMAKING As the global economy has evolved by adding an increasing number of technology-based and knowledge-sector jobs, cities have expanded their economic development strategies from solely focusing on transportation access, low costs, tax incentives, etc. to including the attraction of multi-generational talent by becoming desirable places to live. (Source: Michigan State University, 2015). Because these workers are mobile and in high demand, they often decide to live and work in communities with a high quality of place. According to recent studies of 25- to 34-year old, college-educated workers, the following factors were considered as part of the employment decision: Elements of Quality Places:  Mixed uses  Public spaces  Broadband  Multiple mobility options  Multiple housing options  Preservation of historic structures  Community heritage  Arts, culture, creativity  Recreation & entertainment  Green spaces Source: International Economic Development Council, 2017. 4.6 TOURISM Page 8 of 15 ED - 5 According to the Washington Tourism Alliance, in 2019 (prior to declines directly resulting from the COVID-19 pandemic), Washington State had a total of 110 million visitors, and direct visitor spending totaled $21.9 billion. On average, visitors spent $60 million per day in Washington State. Tourism has been long regarded as a vibrant and somewhat simple economic development tool. Visitors arrive, spend money on food, retail shopping, accommodations, attractions, and then head home. To capitalize on this revenue-generating activity, the City needs to understand why people are visiting Federal Way; and, how to increase the number of these visitors. Although day trips such as hiking through the West Hylebos Wetlands Park or visiting Dash Point State Park represent a valuable tourism activity, also understanding what brings people to stay in a hotel in the City is a good way to better understand why people are visiting Federal Way. A 2021 study funded by the City (Proposed Federal Way Hotel, HVS Consulting & Valuation), identified the hotel stays in Federal Way were comprised of Commercial (business travelers) at 43%, Groups (family reunions, sporting or entertainment events, company trainings, etc.) at 24%, and Leisure (those visiting or passing thru the area) at 33%. From the study cited above, business travel represents the largest group of hotel stays in Federal Way. These travelers chose Federal Way either because of businesses located in the City, or those located in nearby communities. The sector that represented the lowest cohort were groups visiting the City for some family, work, or event activity. To increase tourism in the City, this would be the sector that could be targeted by hosting additional sporting events, festivals, etc. As for current tourism assets, the following notable attractions draw people to Federal Way: Wild Waves and Enchanted Village The largest theme park in western Washington, Wild Waves offers a variety of rides and amusements. The water park includes river rides, a maze of water slides, a wave pool, and more. Enchanted Village, the theme park section of Wild Waves, has an array of rides for families, kids, and thrill seekers. All summer long, visitors can stop by the Enchanted Village Stage for special entertainment like live Magic and Mad Science Experiment shows. King County Aquatic Center The Weyerhaeuser King County Aquatics Center was constructed for the 1990 Goodwill Games. It has hosted US Olympic Diving Team Trials in 2000 and 2012, NCAA championships, PAC-12 conference championships, USA Swimming Winter National championships and Speedo Junior National championships. Celebration Park The facility includes: batting fields with evening lights, bleachers, restroom and concession building, total of eight soccer and baseball fields with evening lights, children’s play structure, trails and pathways connecting to the BPA Trails System and parking for 493 vehicles. Pacific Bonsai Museum One of only two museums in the United States solely dedicated to bonsai, and one of only a handful of bonsai museums worldwide, Pacific Bonsai Museum maintains a collection of 150 bonsai that are among the finest examples of bonsai anywhere in the world. The Page 9 of 15 ED - 6 collection is also the most geographically diverse bonsai collection in the United States, with trees from Canada, China, Japan, Korea, Taiwan, and the United States. Rhododendron Species Botanical Garden The Rhododendron Species Botanical Garden is home the largest collection of Rhododendron species in the world. Visitors experience a diverse botanical collection in a forest of Douglas fir, western red cedar, hemlock and other native plants. The garden is also home to beautiful companion plants, including the famous Himalayan Blue Poppies, Camellias, Magnolias, Japanese maples, and many rare plants. PowellsWood Garden Combines a lush pleasure garden and native woodland within a 40-acre nature preserve. Dumas Bay Centre & Knutzen Family Theatre Dumas Bay has three light-filled meeting and banquet rooms, each with stunning views of Puget Sound and the Olympic Mountains, plus a few interior meeting rooms for groups or breakouts. For overnight stays, there are 68 bedrooms plus one fully contained suite. Built in 1998, the Theatre provides a venue for professional theatre and the symphony. The theater seats 234 and has shown plays, musicals, and music performers. The Preforming Arts and Event Center (PAEC) The Federal Way Performing Arts & Event Center represents a new caliber of event space in South King County. It boasts state-of-the-art acoustics, two audience floors totaling 700 seat capacity, removable orchestra shell, chorus risers, and marley dance floor. 4.7 ECONOMIC DEVELOPMENT GOALS & POLICIES This section contains the goals and policies of the Economic Development Chapter of the Comprehensive Plan. Goals EDG 1 Support an equitable and strong local economy with opportunities for all to prosper. Promote and create a sustainable, diversified and globally focused economy. EDG 2 Help attract, expand, and retain businesses, jobs, and investments that provide employment and enhance income opportunities for Federal Way residents. EDG 3 Work with the Weyerhaeuser Corporation for reuse of the Weyerhaeuser Corporate Campus to provide jobs for the next generation.Invest in placemaking spaces and details to help attract businesses to Federal Way. EDG 4 Build a brand to pPromote Federal Way as a business-friendly community. and enhance the image of Federal Way. EDG 5 Ensure educational and training opportunities exist to align with future job growth. EDG 6 Formulate tools and systems to eEncourage and enhance support entrepreneurship opportunities and the growth of local microbusinesses. EDG 7 Emphasize redevelopment that transforms the City from a suburban bedroom community to a diverse, jobs-rich urban center. EDG8 Encourage concentration of non-residential development into five primary areas: Page 10 of 15 ED - 7  High-density mixed-use development in the City Center  High-quality low/mid-rise mixed-use development in the Twin Lakes Commercial Sub-area.  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 commercial development, including corporate headquarters in a park-like campus in East Campus and the Weyerhaeuser Campus. EDG 9 Encourage and support the development of recreational and cultural facilities and/or events that will bring additional visitors to Federal Way, and increase visitor spending. EDG 10 Encourage cooperative partnerships to address the economic expansion of the City. EDG 11 Enhance the economic future of the community by encouraging the creation of jobs that provide a livable wage and reduce income disparity. EDG 12 Implement infrastructure projects that support new and existing business and that reinforce the City Center’s position as the heart of the community. Policies EDP 1 Cooperate with the federal, state, and region’s public jurisdictions and private entities on matters of individual interest including: economic, social and environmental issues. EDP 2 Periodically monitor local and regional trends to be able to adjust plans, policies, and programs. EDP 3 In conjunction with the local business community including the Chamber of Commerce and community groups, , actively pursue ties to Pacific Rim nations and living-wage employersbusinesses to stimulate related business activitysupport the local economy. EDP 4 Actively recruit new employers to the City. EDP 5 Promote the continued diversification and sustainability of the local economy and expand employment opportunities for residents. EDP 6 Provide a better balance between housing and jobs by increasing the number of jobs within the City relative to the number of households. EDP 7 Diversify the economic base by encouraging higher payingliving wage white collar and technical jobs while preserving and enhancing the strong retail base. EDP 8 Promote the redevelopment of existing underdeveloped areas as a means to sustain the economy and provide jobsemployment opportunities. EDP 9 Continue to utilize design guidelines and other tools to enhance the urban built environment in order to retain and attract businesses and residents. Page 11 of 15 ED - 8 EDP 10 Continue to implement a streamlined permitting process consistent with state and federal regulations to reduce the upfront costs of locating businesses or redeveloping businesses in the City and seek ways to make the process more applicant friendly. EDP 11 Continue to pursue aggressive public safety programs designed to protect residents, businesses, and their investments. EDP 12 Continue to provide a business-friendly tax structure with no business and occupation tax or employee head tax. EDP 13 Support existing industrial employers and the addition of new industrial targeted employers that contribute to the diversity of the City’s employment base and support other industries in the City. EDP 14 Be proactive in attracting commercial development with high paying jobs to locate at the Weyerhaeuser Campus. EDP 15 Consider allowing a wider range of uses in response to market conditions at the Weyerhaeuser Campus. EDP 16 Provide and work with partners, such as the Federal Way Chamber of Commerce, to ensure effective and efficient services to residents, businesses and visitors in the effort to become a “Premier City in the Puget Sound region” EDP 17 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. EDP 18 Fund the public portion of public/private groups to allow the groups to do an effective job in marketing the community. EDP 19 Continue to manage an economic development web page that promotes business and development opportunities within the community;, provides an interactive database of information of value to site selectors, businesses, and developers,; and, involves the participation ofprovides connections to the Federal Way Chamber and other business-oriented stakeholder groupslocal resources. EDP 20 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. EDP 21 Actively Support opportunities for employee training and higher education in Federal Way. promote the continued diversification and sustainability of the local economy along with education opportunities through a “University Initiative.” Page 12 of 15 ED - 9 EDP 22 Strive to create working partnerships with institutions of higher education in order to encourage and support their location, expansion and further integration within the Federal Way economy, and identify and exploit increasing opportunities for economic development. EDP 23 Recruit a university branch campus to locate in the downtown close to the transit center, and other civic and urban amenities. EDP 24 Consider opportunities to partner with local human-service organizations in providing human resources developmentemployment training programs for unemployed or under-employed workers. EDP 25 Implement zoning and provide financial incentives that encourage prioritized development consistent with comprehensive and subarea plans and orderly, phased growth. EDP 26 Actively work to facilitate joint public/private funding of infrastructure. EDP 27 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. EDP 28 Continue to look for opportunities to assimilate land in the City Center in order to achieve the community’s vision for that area. EDP 29 Actively eEncourage redevelopment of the City Center and the creation of a vibrant Downtown. EDP 30 Build out the Town Center with a mix of uses such as the Preforming Arts and Events Center (PAEC), public park, and a mix of residential, commercial, office, educational, and civic uses. EDP 31 Work with the local real-estate community to reoccupy market and promote the vacanciest in the office buildings in West Campus. EDP 32 Continue to implement high-quality urban design standards for these areas. EDP 33 Continue to utilize the SEPA Planned Action for the City Center so that compliant development proposals may receive permit approvals with a minimum of environmental review. EDP 34 Explore innovative financing techniques such as Local Improvement Districts, Industrial Revenue Bonds, New Market Tax Credits, and other innovative financing tools to encourage desired redevelopment. EDP 35 Recognize the importance ofSupport and facilitate local cultural and regional recreational activities. y to the economy, and through the Lodging Tax Advisory Committee, Arts Commission, and Parks Department pursue joint ventures with private Page 13 of 15 ED - 10 groups and individuals in developing cultural and recreational opportunities in Federal Way. EDP 36 Encourage the expansion of existing and development of new multi-purpose facilities to host cultural and recreational activities, and continue to work with the lodging providers in order to increase the number of visitors to Federal Way, thus increasing visitor spending. EDP 37 Recognize a quality-built environment with civic amenities helps attract the talented workers who will sustain economic growth. EDP 38 Develop an environment that fosters respect for all individuals and groups and promotes equitable employment opportunities. EDP 39 Emphasize economic development activities in the City Center as a major regional economic center and retail destination. EDP 41 Maintain a business climate that supports the retention and expansion of the city’s economic base. EDP 42 Promote local businesses and locally-produced goods and services. EDP 43 Support investment in educational, technical, and vocational programs that enhance the local skilled workforce. EDP 44 Support and participate in regional economic development planning with the public and private sectors. EDP 45 Partner with community agencies and organizations to address income equity and employment opportunities within the local economy. EDP 46 Promote infrastructure projects that enhance the city’s quality of life and business climate. EDP 47 Use capital facility funds to promote economic vitality in those areas designated for economic development, concentrations of employment, or mixed-use. 4.8 MAPS The Major Employment Centers Map (Map ED-1) graphically displays the portions of the City where employment concentrations should occur. Page 14 of 15 Page 15 of 15