PRHSPSC PKT 01-25-1999
(I, ,
I' ,-i "
- , <
City of Federal Way
CITY COUNCIL
PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COMMITTEE
Monday, January 25, 1999
12:00 p.m.
City Hall
Administration Conference Room
REVISED AGENDA
1.
CALL TO ORDER
2.
- PUBLIC FORUM
3.
COMMISSION COMMENTS
4.
APPROVAL OF JANUARY 11, 1999 SUMMARY
5.
COMMITTEE BUSINESS
A.
B.
CDBG Economic Development Set-Aside
Soroptimist Flag Display/Campus Drive
Action
Infonnation
Parker
Schroder
6.
NEXT MEETING - February 8,1999 - 5:30 p.m.
ADJOURNMENT
7.
Staff:
Jennifer Schroder, Director
Sue Floyd, Administrative Assistant
661-4041
Committee Members:
Jack Dovey, Chair
Jeanne Burbidge
Linda Kochmar
. '
:'" '¡', >c.ity'<:~f'~~d'~~âl~~ÿ,~:;;~:jr ' );;~~;i;'!i~j:~~l:'<~,';;;:;};::;:i;;~;i~::':;;~<:;~{~Ò~;;;t:;t~:i.
City Council
Parks. Recreation. Human Services & Public Safety Committee
1999 Calendar
(20d & 4th Monday of each month)
.
.<~"; ;':
':"",5'o.',30'p' ~,In'o' "'0' '," '" "',,:i,I:;':':')':f:!::i*:;>l~,~oO' '", ,,;'~:~"'~;, :.'"',:.:,,;i::-.,;'-:',,
,:"..~!:;..", ,"',' :::'~!r:"'1i~;¥j¡:h'~.;' ,'to, "noQ!l:~;"}",,ti<'.(,~'::,<~:rf4~!i1;"
January 11
February 8
January 25
February 22
March 8
March 22
April 26
April 12
May 10
May 24
June 28
June 14
July 12
August 9
July 26
August 23
September 13
October 11
September 27
October 25
November 8
November 22
December 27
December 13
Time: Meetings held on the second Monday of the month are at 5:30 p.m. Meetings held
on the fourth Mondays of the month are at 12:00 noon.
Place: 2nd Floor Administrative Conference Room, unless otherwise advertised.
Agenda Titles/Packet Material: Due to the Administrative Assistant before noon on the
Tuesday prior to the meeting.
Committee Members:
Jack Dovey, Chair
Jeanne Burbidge
Linda Kochmar
City Staff:
Jennifer Schroder, Director of PRCS (661-4040)
Sue Floyd, Administrative Assistant (661-4041)
-
City of Federal Way
City Council
PARKS, RECREATION, HUMAN SERVICES & PUBLIC SAFETY COMMITTEE
Monday, January 11, 1999
5:30 p.m.
City Hall
Administration Conference Room
SUMMARY
In attendance: Council Committee Chair Jack Dovey; committee members Linda Kochmar and Jeanne Burbidge;
Jennifer Schroder, Director of Parks, Recreation and Cultural Services; David Wilbrecht, Deputy Director of Parks,
Recreation and Cultural Services; Mary Faber, Recreation and Cultural Services Manager; Pat Richardson, Assistant
City Attorney; Ed Swan, Neighborhood Development Specialist; Chief Ron Wood, Public Safety Department;
Commander Dan Coulombe, Public Safety Department; Lt. Paul Rubenstein, Public Safety Department; Laura Camden,
Police Sérvices Officer; Sue Floyd, Administrative Assistant; Guests Barbara Reid, David Kaplan, Bob Kellogg
Committee member Linda Kochmar called the meeting to order at 5:30 p.m. in Chair Dovey's temporary absence.
ADDITION TO AGENDA
LINDA KOCHMAR MOVED, JEANNE BURBIDGE SECONDED A MOTION TO ADD "RED, WHITE AND
BLUES FESTIVAL" TO THE AGENDA. MOTION PASSED.
COMMISSION COMMENTS
Barbara Reid, Chair, Parks and Recreation Commission, updated the committee on the proposed 1999 work plan that
was discussed by the Commission on January 7, 1999. The Commission will continue with the items from the 1998
work plan, which include Celebration Park, Skate Park, Wedge wood Park and the updated Comprehensive Plan.
Regarding Celebration Park, Reid noted, items to be completed includ~ the dedication ceremonies, signage, commercial
sponsorships, working with the Arts Commission on public art and a usage standards guide. The Commission would
like direction on the dedication ceremony funding. As far as funding for the Wedgewood Neighborhood Park
completion, it has been recommended as part of the City Manager CIP package to be considered by the City Council.
Skate Park has been funded through design only. The Commission, at their January 7 meeting, expressed their concern
about the Mayor's suggestion that the Youth Commission raise $50,000 for the park. Reid noted that it was not easy
to raise the money for Celebration Park, and it would be virtually impossible for the Youth Commission to raise
$50,000, The majority of the Youth Commission are academically oriented and do not have the time to anything above
what they are doing now, Other items the Commission would like to add to their work plan are- as follows: 1)
Alderbrook Park renovation and maintenance of children's play area; no budget has been established for this project.
2) Update Park Facility Guide by neighborhood or geographic area. 3) French Lake Park Master Plan: The Commission
had concerns about future Lakehaven development which could impact the park, 4) School District Bond Issue:
published reports indicate that the School District wants to utilize Steel Lake to build a community center. 5) Canoe
Club: a decision needs to be made regarding the canoe club practicing and racing on Steel Lake, which is against City
ordinance. 6) Neighborhood Park Development. 7) Communications Plan: quarterly insert in recreation brochure, park
guidelines, awareness program. The Commission will vote on their work plan in February,
PUBLIC FORUM
Bob Kellogg reported that Dr. Maynard Campbell has expressed a desire to look into a fund raising project for skate
park, Mr. Campbell belongs to two Federal Way Kiwanis clubs and they appear interested in obtaining the naming
rights to skate park (i,e" Kiwanis Skate Park), Ms. Schroder responded that Kiwanis should submit a proposal to the
City for Council Committee review,
David Kaplan noted that when researching the dollar figure for the naming of skate park, look into the cost of naming
of the theatre, portions of Celebration Park, etc, Mr. Kaplan discussed the City's web page for Celebration Park, and
felt it was outdated, He suggested deleting the outdated information and revising the format.
Parks, Recreation, Human Services & Public Safety Council Committee
January 11, 1999 Summary
Page Two
Ms. Schroder responded that the department is responsible for updating and changing the information; staff will follow-
up on his request.
APPROVAL OF NOVEMBER 23. 1998 SUMMARY
JEANNE BURBIDGE MOVED, LINDA KOCHMAR SECONDED A MOTION TO APPROVE THE
DECEMBER 14,1998 SUMMARY AS WRITTEN. MOTION PASSED.
BUSINESS ITEMS
APPROVAL OF LOCAL LAW ENFORCEMENT BLOCK GRANT
The Department of Public Safety was awarded a Local Law Enforcement Block Grant in the amount of $110,973, in
addition to the City's match of $12,331, for a total grant amount of $123,304 for one police services officer and a
vehicle for the SeaTac Mall. LINDA KOCHMAR MOVED, JEANNE BURBIDGE SECONDED A MOTION TO
ACCEPT THE 1998 LOCAL LAW ENFORCEMENT BLOCK GRANT FOR $110,973 WITH THE CITY'S
MATCH OF $12,331 FOR A TOTAL GRANT AMOUNT OF $123,403 TO BE AWARDED TO THE
DEPARTMENT OF PUBLIC SAFETY TO FUND ONE POLICE OFFICER AND ONE VEmCLE. MOTION
PASSED.
CELEBRA nON PARK STATUS
Mr. Wilbrecht reported that Celebration Park is substantially complete. The contractor has notified the City that they
are done, and staff is currently working on the punch list items. After a discussion with the City Manager, it was agreed
to leave the park closed to the public until the end of February, when it will be evaluated. If it is not ready, it may be
closed until April. Mr. Wilbrecht will give a budget status report at the March 8 meeting. Ms. Kochmar would like to
have the same report presented to the Finance/Economic Development and Regional Affairs Council Committee. After
discussion, the Council Committee agreed to hold the park dedication sometime in May. Mr. Dovey noted thatthe Little
League teams would like to put on a parade and play opening games on dedication day.
SKATE PARK
Mr. Wilbrecht reported that the consultant is in the process of the design phase and should be complete by the end of
this month, including preliminary costs. This information will be presented to Council prior to the CIP review.
SORopnMIST FLAG DISPLAY/CAMPUS DRIVE
Soroptirnist International has asked the City to assist with the maintenance of the Flag City USA display on Campus
Drive. Staff noted that the City has received this same request for the last three to five years. The flags are located on
the City's right-of-way. One idea is to have Soroptirnist dedicate the flags to the City and then it would be the City's
responsibility to maintain them, or staff could contact King County, as the flags do benefit the King Cpunty Aquatics
Center. Soroptirnist does not have the funds to continue to maintain and/or replace the flags on a yearly basis. Staff
will contact the Public Works Department to confirm the poles are within the right-of-way, and with Rose Ehl of
Soroptimist regarding the history of the flags (who installed them, who has ownership, etc.) prior to the next committee
meeting,
1999 RED, WHITE AND BLUES FESTIVAL
Staff reported that the 1999 Red, White and Blues Festival is being planned for Celebration Park instead of Saghalie
Park. Staff is working with the Fire Department to obtain their approval of the plan.
NEXT MEETING
January 25,1999,12:00 noon
ADJOURNMENT
The meeting adjourned at 6: 10 p,ll1.
-
Item SA
CITY OF FEDERAL WAY
CITY COUNCIL
PARKS, RECREATION, HUMAN SERVICES, AND PUBLIC SAFETY COMMITTEE
Date:
January 15, 1999
Camron Parker, CDBG Coordinator C[)
Economic Development Strategies USingt~ Community Development Block
Grant
From:
Subject:
BACKGROUND
During the October 12, 1998 Parks, Recreation, Human Services, & Public Safety (PRHSPS)
Committee meeting, Human Services staff presented the eligible uses of the Community
Development Block Grant (CDBG). At that meeting, the Committee requested further
infonnation on eligible economic development activities under the CDBG program, and on the
implications of setting aside a portion of the annual grant for such purposes.
This memo outlines the process for and implications of a CDBG set-aside for eligible economic
development projects. Attached to this memo are the Council adopted Housing and Community
Development Plan Four- Year Strategies. (Attachment 1). These strategies include proposed new
language that accommodates a funding set-aside for eligible economic development purposes.
Also attached is infonnation on economic development activities that are eligible under the
federal CDBG program regulations (Attachment 2).
The PRPSHS Committee's recommendation on this action item will be forwarded to City
Council for consideration at the Council's regular meeting of February 2, 1999.
.'
BLOCK GRANT ELIGIBILITY AND REQUIREMENTS
The purpose of the Community Development Block Grant is to help develop viable urban
communities by providing decent housing and a suitable living environment, and by expanding
economic opportunities, principally for low-and moderate-income individuals. All CDBG
projects must fall within the parameters of this mission statement.
Working toward this mission, the City has the option to fund the CDBG eligible projects of local
non-profit organizations or, under limited circumstances, for-profit corporations. Assistance can
be given in both grant and loan form. In the past, the City of Federal Way has focused
r--
_')i-I
PRPSHS -- CDBG Ec Dev
Page 2 of 5
predominantly on grant assistance to projects implemented either by the City itself or by non-
profit organizations.
All CDBG projects must (I) meet local funding strategies, (2) meet county-wide funding
objectives, (3) be an eligible activity as set forth in the federal CDBG program regulations, and
(4) meet one of three national objectives. During implementation, the project must submit
quarterly perfonnance measures and comply with any and all federal regulations that may apply
to the project (these may include mandatory wage rates, hiring practices, environmental review,
etc.).
With few exceptions, CDBG projects that include assistance to for-profit businesses have an
additional set of standards to meet. For-profit businesses are required to prove that the level of
public benefit derived from the activity is proportionate to the amount of CDBG assistance being
provid.ed.
There are two alternatives for for-profit entities to prove public benefit (most all projects use the
first alternative, as the second is difficult to assess and monitor). .
1. Job creation or retention: one full-time equivalent, pennanent job must be created or
retained per $35,000 in CDBG funds. If the job is to be retained, substantive evidence must
be made that the job would be lost without CDBG assistance.
2. Provision of goods and services to low- and moderate-income individuals: at least one
low- or moderate-income individual must be receive new goods or services per $350 in
CDBG funds. For example, if a for profit entity received a $35,000 CDBG loan, that
business would have to document that their goods or services directly benefit at least 100
low- and moderate-residents within the business' service area.
It is important to note that the job creation regulations do not mandate wage rates for new or
retained jobs. It is commonly viewed that a new or retained low-wage job has little public
benefit as the wage earner will remain a low- and moderate-income individual (therefore
remaining eligible for human service programs). To address this, many public agencies require
that new jobs be offered at a "family wage." In general, this means that new jobs must average at
least $8.00 an hour and include benefits.
A SET-AsIDE FOR ECONOMIC DEVELOPMENT
A suggestion has been made to set aside a portion of the City's block grant each year for
economic development purposes. This section discusses the process for establishing a set-aside
and the implications of a set-aside. The implications are divided between general effects to the
CDBG program and potential outcomes in the community.
-
1/15/99
I:\ßG PROJS\ECDE V\EC DEV2, DOC
5A .cJ-
PRPSHS -- CDBG Ec Dev
Page 3 of 5
Process for Establishment
Every year, the City hosts a competitive application process where local non-profit organizations
or City departments can apply for CDBG funding. Recommendations for funding are made by
the Human Services Commission based upon the Council adopted Four-Year Strategies. The
City Council then uses the same strategies to guide funding decisions. A set-aside for eligible
economic development projects could be established by amending the second strategy as follows
(proposed text is underlined):
Strategy Two: Prioritize and fund projects that strengthen the City's infrastructure and stimulate
economic development. Approximately <$100,000 or 15% (choosing one» of
the annual CDBG allocation will be targeted toward projects categorized under
this strategy. (proposed text also included in Attachment One)
Should the Council choose to establish a set-aside, it may be implemented as follows. When the
City releases its application for CDBG funding in the year 2000, special mention would be given
to the existence of a set-aside. This will allow local non-profit organizations or City departments
to prepare an application targeting the set-aside funds.
When all CDBG applications are received, they will be individually evaluated. After evaluation,
special consideration may given to applications eligible for the set aside funds. Should eligible
funding requests not reach the set-aside amount, the remaining amount would become available
to the general applications. Should funding requests exceed the set aside amount, applications
eligible for the set-aside will be ranked and recommended for funding up to the established
amount. Eligible applications that are excluded from the initial set-aside recommendation may
continue to compete with the general applications.
Implications: Effects on the CDBG Program
An economic development set-aside will impact the CDBG program in several ways. In general,
a set-aside can be beneficial. A set-aside adds a measure of stability to CDBG funded programs.
Under a competitive application process, the applicant can be assured that there will be a
dedicated source of funds to apply for every year. A set -aside will also guarantee a diverse
project assortment in the annual CDBG portfolio.
On the other hand, a set-aside will decrease the program's flexibility and will limit the funding
discretion of the Council. The block grant program, at just over $650,000 in 1999, currently has
a federal cap for grant administration ($73,000), a federal cap for human service programs
($83,500), and a quasi-set-aside for the Housing Repair Program (funded every year, averaging
$150,000). Assuming a $100,000 set-aside for economic development, less than $250,000 will
remain in discretionary CDBG funds. This also pennits a scenario where the Council may be
obligated to approve a project with dedicated funds while turning away potentially more suitable
projects that do not qualify for the dedicated funding source.
A set-aside will also effect how CDBG addresses local plans and policies. CDBG projects have
continuously worked toward achieving the goals within the Comprehensive Plan. Diversifying
project types to include economic development will broaden the number of plan goals that the
1/1 5/99
[:\BG PROJS\ECDF V\ECDEV2, DOC
c- ,
:J.' - -
PRPSHS -- CDBG Ec Dev
Page 4 of 5
CDBG program addresses. Similarly, the set-aside will promote a balanced distribution of
projects among the City's three CDBG funding strategies.
Implications: Outcomes in the Community
The impact of a set-aside will ultimately take shape in the community. Public investment in
economic development will help guide private development in Federal Way toward the
community's long tenn vision. Targeted improvements to an area's public amenities (such as
new or improved parks) and infrastructure (rebuilding streets, sidewalks, and utilities) act as a
catalyst for private investment. Public amenity and infrastructure projects can often be large in
scale. If the CDBG set-aside is to fund these types of projects, other sources of significant public
or private investment will have to be identified for a project to be implemented (this issue is'
discussed in Attachment Two).
PubliC-investment through the block grant will also help ensure that the economic development
needs of low- and moderate-income residents are being met. This may take the fonn of upgraded
public infrastructure in a predominantly low- and moderate-income neighborhood, or funding a
portion of a new community facility. Also, certain block grant funded projects may require job
creation as a measure of public benefit. New jobs, at family wage levels, will help diversify the
city's job base and may help move families above low- and moderate-income levels.
SUMMARY
The mission ofthe Community Development Block Grant (CDBG) is to help develop viable
urban communities by providing decent housing and a suitable living environment, and by
expanding economic opportunities, principally for low-and moderate-income individuals.
Eligible economic development projects can assist in achieving this mission. A set-aside for
economic development activities can be established by the City Council through an amendment
to the adopted Four- Year Strategies. Such an action will work to encourage a diverse project
assortment in the annual CDBG portfolio.
STAFF RECOMMENDATION
For the purposes of encouraging a diversity of CDBG project types and for the purposes of
meeting the economic development goals of the Comprehensive Plan, establish a set-aside within
the CDBG program to fund eligible economic development projects. The set-aside would be of a
targeted a~ount ($100,000) or percentage (15%) of the annual CDBG allocation and be
expressed by amending the CDBG Four-Year Strategies (as attached). The set-aside would
begin for the year 2000 CDBG application cycle.
-
1115/99
I :\BG PROJS\ECDEV\ECDEV2, DOC
5,[ - L(
PRPSHS -- CDBG Ec Dev
Page 5 of 5
COMMITTEE RECOMMENDATION
I. The Committee recommends maintaining the past practice of considering economic
development projects within the annual competitive application process and having no
specific set aside of CDBG funds for economic development activities. The Committee
forwards this recommendation to the full City Council for consideration at the February 2,
1999 meeting.
2. The Committee recommends to the full City Council an amendment to the CDBG Four-Year
Strategies which adds a funding criterion to the second strategy. The additional criterion to
set aside approximately $100.000 OR u% (choosing one) of the Community Development
Block Grant each year for CDBG eligible economic development activities within the City.
The set-aside is to be included in the year 2000 CDBG funding cycle. The Committee
forwards this recommendation to the full City Council for consideration at the February 2,
1999 meeting.
3. The Committee forwards to the full City Council a recommendation of its choice for
consideration at the February 2, 1999 meeting.
ApPROVAL OF COMMITTEE REPORT:
Committee Chair
Committee Member
Committee Member
1/15/99
I :\BG PRO1S\ECDEV\EC D EV2, DOC
T," J -- 1/
~_/. ;
ATIACHMENTI
¡g~nERRL
~~ Fn/
COMMUNITY DEVELOPMENT BLOCK GRANT
HOUSING AND COMMUNITY DEVELOPMENT PLAN
FOUR-YEAR STRATEGIES, 1996-1999
The Housing and Community Development Plan evolved from the 1993 Community
Development Block Grant (CDBG) Local Program Policies. The four-year strategies within the'
Plan were developed in 1994 and updated in 1995. These strategies provide guidelines for the
allocation of CDBG funds and are consistent with the City's Comprehensive Plan developed
under the Growth Management Act and the Human Services Comprehensive Plan.
GOAL STATEMENT
Service needs for City residents far outweigh the availability of resources. As a relatively newly
incorporated jurisdiction with a large and diverse population, the City is faced with the challenge
of providing services that address needs in the areas of affordable and special needs housing,
human services and community development.
The City will use CDBG funds to develop a viable community in which quality of life is
enhanced by providing decent housing and a suitable living environment and expanding
economic opportunities for low- and moderate-income persons.
OBJECTIVES
"
~ To fund projects which address local needs and strategies
~ To ensure that the basic human services needs oflow- and moderate-income persons are
addressed
~ To adequately address the City's housing needs to accommodate projected growth in low-
and moderate-income households, as well as senior and special needs populations
~ To preserve the existing housing stock
> To stimulate economic development and strengthen the City's infrastructure
.S-i -- /-f
F our- Year Strategies
Page 2 of 5
A IT ACHMENT I
NEEDS
The City of Federal Way has identified housing and non-housing community development needs
through public involvement activities, studies, needs assessments, and planning processes.
I. Public and Community Facilities Improvements - Senior and Community Centers, Child
Care Centers, Parks and Recreation Facilities, and Health and Social Services Facilities
which predominantly serve low- and moderate-income persons and address severe health and
safety problems.
2. Housing - Affordable housing for low- and moderate-income people, seniors, special needs
populations, transitional housing and emergency shelters, and preservation of existing
housing stock.
3. Accessibility - Modifications to community facilities and existing structures to remove
barriers and improve safety conditions especially for elderly and disabled persons.
4. Infrastructure Improvement - Neighborhood revitalization projects such as Surface Water
Improvements, Street, Sidewalk and Pedestrian Crossing Improvements, Transportation
Improvements, and Street Lighting.
5. Public Services - Projects which meet the following City Council human services goals:
~ support basic human needs through funding of emergency services;
~ support a strong service delivery system that increases public safety;
~ provides support that supplements federal, state, and county programs designed to
increase self-sufficiency and independence; and
~ support service models that improve community-based collaboration and build strong
neighborhoods.
6. Planning and Administration - CDBG Program staffing and administration, planning for
affordable housing resource development and potential annexation areas.
--
1115/99
l:\BGGENRAL\ßGSTRA TSDOC
,) ~(, ,-/
F our- Year Strategies
Page 3 of 5
AlTACHMENT I
STRATEGIES
The City of Federal Way adopts the following three strategies to guide funding decisions for the
annual Community Development Block Grant allocation.
Strategy #1
Develop a range of housing opportunities aimed at increasing the supply of affordable housing to
accommodate the projected growth in low- and moderate-income households. Create housing
opportunities for seniors, youth, special needs groups and impact the availability of transitional
housing and emergency shelters.
~ - Activity 1
Preservation of housing stock in existing neighborhoods has been cited as an important
community value in Federal Way, one which played a large role in the community's
decision to incorporate. The City will maintain a Housing Rehabilitation Loan and Grant
Program to maintain health and safety standards in the homes of low- and moderate-
income households and persons with disabilities.
~ Activity 2
According to established service providers, suburban homelessness is increasing. There is
a limited supply of transitional and emergency shelter facilities in South King County to
meet this overwhelming need. The City will continue to support local and regional
shelter and transitional housing service providers. The City will encourage and support
more homelessness prevention services, including youth shelter services.
~ Activity 3
The City will explore a variety of methods to increase the supply of affordable housing
for low- and moderate-income families. The City will:
. Consider participating in a South King County regional entity to addres~ housing
needs.
. Assess the value of pooling technical resources between jurisdictions to assist in the
development and implementation of housing policies and programs.
. Look at the benefits of collaborative efforts to coordinate local government money
and resources in a way that will attract greater private and not-far-profit investment
into affordable housing.
. Consider funding homeownership programs such as downpayment assistance, sweat
equity, homebuyer education, community land trust or those that reduce development
costs or reduce mortgages.
.-
II 15/99
I:\BGGENRAL\BGSTRA TS,DOC
,,0- ¡
.J
F our- Year Strategies
Page 4 of 5
A IT ACHMENT 1
Strategy #2
Prioritize and fund projects that strengthen the City's infrastructure and stimulate economic
development. Approximately <$100.000 or 15% (choosing one» of the annual CDBG
allocation will be targeted toward projects categorized under this strategy.
~ Activity I
The City will seek opportunities for public funding of capital facilities, services and
infrastructure by working with the Human Services Commission, and soliciting input
from the Management Team.
~ Activity 2
The City will consider funding public and community facilities improvement projects
which address safety and accessibility issues particularly for the well-being of youth,
elderly, and disabled persons.
~ Activity 3
The City will consider funding projects which encourage community development
activities such as job creation, downtown and neighborhood revitalization, and those
activities consistent with the City's Comprehensive Plan and Human Services
Comprehensive Plan.
~ Activity 4
The City will consider funding capital transportation improvement projects which
connect low- and moderate-income housing areas with vital services in the City.
Strategy #3
Address human services needs which focus upon self-support systems that empowe!". families and
communities to make contributions to their own well-being and enhance the quality of their lives.
Provide technical assistance, planning and administrative services to increase perfonnance levels
of CDBG program participants.
~ Activity 1
The City recognizes that problems faced by children and their families are complex in
nature and can result in dysfunction and tragedy ifnot addressed holistically. Solutions
to complex problems often require a variety of interactive approaches designed to create
environments which provide people with the tools to help themselves.
The City will fund projects and agencies with a holistic approach to service delivery and
demonstrate the ability to leverage funds and network with other service providers.
-.
1/ 15/99
I:\BGG ENRAL\BGSTRA TS,DOC
5/f _C¡
F our- Year Strategies
Page 5 of 5
A TT ACHMENT I
~ Activity 2
The social environment for youth is often volatile and filled with life-threatening
circumstances. Collective efforts between local community organizations, the School
District, and the City, may provide effective solutions that positively impact the young
people in Federal Way.
The City will consider funding projects which provide "at-risk" youth with more
recreational and educational alternatives.
The City will fund projects and public service agencies which assist families with
children in the areas of employment and youth services.
~ Activity 3
The City will participate in regional and local planning activities with King County, the
South King County Community Network Board, and other funders and jurisdictions to
coordinate funding approaches, policies and service delivery which facilitate a continuum
of care for people.
~ Activity 4
Planning and administration funds will be used to administer the City's CDBG program
and whep additional planning funds are available, special planning projects will be
considered.
I II 5/99
1:\BGGENRAL\BGSTRA TS,DOC
c: "-~!
-
I I
ATIACHMENT 2
¡jIOf ~
4 ED ERAL.
~~AY
COMMUNITY DEVELOPMENT BLOCK GRANT
ApPROACHES TO ECONOMIC DEVELOPMENT
The Community Development Block Grant (CDBG) is bound by a categorized list of eligible
activities. These activities are issued in federal CDBG regulations. Recipients of the grant have
the ability to choose and fund any project that (1) can be classified as an eligible activity and (2)
meets one of three national objectives. Using the federal regulations of the CDBG program and
the City's Comprehensive Plan as a base, three economic development approaches arise. These
approaches fall within the federal regulations while meeting numerous Comprehensive Plan
goals and policies. After each approach is described, sections will discuss potential
implementation steps and will identify additional public funding sources to support the
approaches.
ECONOMIC DEVELOPMENT ApPROACHES
As stated in the City's Comprehensive Plan, "the vision for economic development in Federal
Way is a focused economic development strategy intended to build a diverse economy and to
achieve a better jobs and housing balance. The strategy encourages or speeds up the trends and
transfonnations that are already occurring in this community." The Community Development
Block Grant (CDBG) can assist in achieving this vision through the means of a coordinated
approach. Three potential approaches are outlined below.
Approach One: Downtown Development
The Community Development Block Grant has the capacity to further a majority of the Center
City goals within the Comprehensive Plan. This capacity can be tapped through spe.cific CDBG
eligible activities. A downtown development approach may focus on one or more òf the
following activities.
~ Public improvement activities in eligible areas
This is the category under which the 1999 International District project is placed. CDBG
will fund sidewalk and accessibility improvement within the district. This is an eligible
activity because the district is within an area where 51 % or more of the residents have low- to
moderate-incomes, and because the sidewalks are a direct benefit to citizens who can walk to
the area (the local residents). Many of the other improvements planned for the International
District are not CDBG eligible because they benefit the city as a whole rather than a specific
low- and moderate-income neighborhood. Likewise, other public improvements can be
undertaken in the area with block grant funding as long as the majority of the project's
benefits are realized by the adjacent low- and moderate-income residential neighborhood.
.
.;; --! - I{
Economic Development Approaches
Page 2 of 4
A IT ACHMENT 2
~ Activities which suPport affordable housing development
The Comprehensive Plan's ultimate vision for Downtown Federal Way is a high density,
mixed use, transit friendly urban center. The impending Regional Transit Authority (RTA)
transit center siting is one step toward achieving the transit friendly part of the vision. The
block grant can playa significant role in achieving the mixed use part of the vision through
activities that support new housing construction. Specifically, CDBG can fund acquisition
and preparation of sites for affordable housing development or mixed use commercial
development that includes an affordable housing element.
~ Direct assistance to for-profit corporations
CDBG can assist for-profit entities developing in the downtown area, iftheyagree to prove
public benefit through creation of jobs for low- and moderate-income residents. The
opportunities for this type of assistance would be limited in the downtown area due to the
types of jobs that would likely be created. The majority of job growth in the downtown will
in the office and retail sectors. Office development may not be able to provide enough jobs
suitable for low- and moderate-income individuals to meet the public benefit requirements.
Retail development will provide jobs suitable for low- and moderate-income residents,
however they may not be able to offer wage and benefit levels that move new employees
beyond low- and moderate-income status.
Approach Two: Small Business Development
Through special allowances in the block grant program, there are two activities by which small
businesses can be assisted with CDBO without the burden of proving public benefit through job
creation. In both cases, assistance must be given to either a business owner that is a low- or
moderate-income individual, or to a business with a service area completely within a low- and
moderate-income neighborhood.
~ Facade improvement program
The block grant can fund design and construction costs associated with improvements to the
facade of a commercial structure or improvements that correct code violations. This activity
could dovetail with the Downtown Development approach if the commercial stl~uctures being
improved were in the downtown area. A facade program would be administered by either the
City or by a non-profit organization. Applicant intake, eligibility, monitoring, and loan
servicing (if assistance is given in loan fonn) would be perfonned by the City, a non-profit,
or combination of both. Construction or design work would be contracted to a local
architecture or construction finn.
~ Microenterprise assistance
A microenterprise is a business having five or fewer employees, one or more of whom owns
the business. Small loans or grants (typically less than $5,000) are given to microenterprise
business owners to fund start -up or expansion costs. In most microenterprise programs, the
loan or grant is packaged with some type of technical assistance in the form of
entrepreneurial or basic accounting education, computer training, etc. Such a program would
.
I II 5/99
I:\BGPROJS\ECDEV\EDSTRA TS,DOC
.5~ ~ . / Jì
, !
Economic Development Approaches
Page 3 of 4
A IT ACHMENT 2
be administered by the City, a non-profit, an institution of higher learning (most likely a
community college), or a combination of the former.
If assistance is given to a small business, the loan or grant contracts will stipulate that a majority
of low- and moderate-income residents must benefit from the activity receiving public funding
for the life of that funding. For example, a loan is given to a locally owned, non-franchise mini-
mart within a low- and moderate-income neighborhood to improve their facade and correct code
violations. After two years the business is changed to a golf pro shop. The service area of the
business now expands to include a majority of moderate- and high-income neighborhoods. At
this point, the full amount of the CDBG loan becomes due and payable.
Approach Three: Business Park Development: Light Industry
Many of the economic development activities eligible under the block grant are geared directly
toward industrial development. This is due to the fact that jobs created in the manufacturing
industry are likely to offer higher-level wages ("family wages"), which will reduce a family's
dependence upon other human services. A program to encourage light industrial development
within business parks will diversify the city's job base (manufacturing accounts for 3.8% of the
jobs in Federal Way) while providing higher paying jobs for low- and moderate-income
residents.
CDBG can fund acquisition, construction, rehabilitation, or reconstruction of industrial projects
if the improvements are carried out by the city or by a non-profit agency. Assistance to for-profit
entities undertaking light industrial development can be given in the form of loans, loan
guarantees, interest write-downs, grants, or technical assistance. In all cases, public benefit must
be proven (job creation or retention).
ADDITIONAL FUNDING SOURCES
The City can increase its impact on economic development by coordinating block grant funding
with other private and public funding sources. Additional public funding sources exist at every
level of government. The Department of Housing and Urban Development, the S~all Business
Administration, and the Economic Development Administration are all potential sources for
additional public investment. At the state level, the Department of Community, Trade, and
Economic Development, the Housing Finance Commission, and the Public Works Trust Fund,
may also be viable funding sources for economic development activities.
All the funding sources mentioned above will require the City to compete for funds. New local
funding sources, such as a Local Improvement District (LID) or a Business Improvement District
(BID) will not require competition and will be most effective in gaining participation of local
property and business owners. LIDs and BIDs are both special self-assessments made by
property or business owners within a specified boundary to fund specified projects. LIDs are
designed to fund for public works projects. BIDs are designed fund business improvement
programs (such as banners, festivals, cleaning and safety programs) and parking structures. The
block grant can be used to supplement funds collected through both types of special self-
II 15/99
I:\BGPROJS\ECDEV\EDSTRA TS,DOC
Economic Development Approaches
Page 4 of 4
A IT ACHMENT 2
assessment. For LIDs alone, CDBG could be used to pay the assessment oflow- and moderate-
income property and business owners.
IMPLEMENTATION
Any of the economic development approaches within this memo will be new programs for the
implementing agency (either the City or a local non-profit organization). The one exception to
this being public infrastructure improvement projects. The various approaches described have
differing levels of organizational complexity and will require different types of partnerships to
implement an approach. The chart below describes how each approach may be implemented.
ApPROACH POTENTIAL IMPLEMENTATION
DOWNTÖWN DEVELOPMENT
Public improvement activities Identify CDBG eligible projects in Comp Plan or CIPs --
complete with annual set-aside (partner CDBG wI LID or BID)
Affordable housing development Release a Request for Proposals -- separately or through annual
competitive application process
Assistance to for-profits Identify entity to market, intake, negotiate, loan service, and
monitor (King Cty Ec Dev Dept, EDC, Chamber of Comm)
SMALL BUSINESS DEVELOPMENT
Facade improvement program or Identify entity to market, intake, negotiate, loan service, and
Microenterprise assistance monitor (City or Chamber ofComm wI bank or credit union)
BUSINESS PARK DEVELOPMENT: LIGHT INDUSTRY
Assistance to for-profits Identify entity to market, intake, negotiate, loan service, and
monitor (King Cty Ec Dev Dept, EDC, Chamber of Comm)
-.
1115/99
I:\BGPROJS\ECDEV\EDSTRA TS,DOC
.-
/, I
<~/