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Council PKT 01-27-2007 Retreat ~ ~ ... CITY OF I ,~ Federal Way . i City Counc,!l & Management Team Annual Strategic Planning Retreat i . AGENDA , COULCILMEMBERS .. Mike Park, Mayor t Jeanne Burridge Jim Ferrell Jack IJJovey Linda Kochmar EO"Elo D Mel nc 4alson ean cogan I CITY MANAGER , Neal Beets, City Manager I . I 'I Saturday, January 27, 2007 , Dpmas Bay Centre 3200 SW Dash Point Road ~ 8:30 AM to 4:00 PM t ~ I . ~ t CITY OF FEDERAL WAY CITY COUNCIL AND MANAGEMENT TEAM ~ Annual Strategic Planning Retreat k Saturday, 27 January 2007 k8:30 a.m. - 4:00 p.m. IDumas Bay Center DRAFT AGENDA TH)MEETlNG'S GOALS: " 1. Review ourjPrincipal accomplishments of 2006 and assess what factors produced them. 2. Assess the quality ~f our interactions as teams of elected officials, elected and appoint~d officials, and public servants and citizens. 3. Discuss long-term struGtural issues to lay the foundation for future actions. ********* NOTE: Refreshments will be served beginning at 8 o'clock so come early to enjoy them and be prepared to begin the meeting precisely at 8:30. ,. I. 8:30 Welcome! Review ("day'S Purpose Mayor Mike Park II. 8:35 Review Agenda, Jound Rules and Facilitation Techniques Jim Reid III. 8:40 Public Comment plOd Everyone . . Do our guests in1the audience have any comments on the topics we will discuss to~ay or other issues important to them? IV. 8:50 Warm-up Exercise Everyone V. VI. VII. 9:30 A Review and Assessment of 2006 · What were the mo~t important accomplishments of 2006? . · Whatfactors produced these accomplishments? · Was anything not~s successful as you expected? Ifso, what was it and what factors prevented or limited success? · A brief discussion~ith Brian Wilson about his leadership and management'~hilosophy and his vision for the Police Department. 'I 10:15 Implementing Prop~sition 1 · Directors will bri'flY describe their departments' approaches to im}lementing Proposition J. ' · Questions and br~ef discussion. 10:45 Break I 11 :00 An Assessment of ~ur Interactions and Teamwork . What are the stre..ngths of our interactions as a team of elected officials? Are there any ar~s in which we could improve? What are the str~~gths of our interactions as elected and appointed officials? Are there any ar~as in which we could improve? What are the str~gths of our interactions with the public? Are there any ar~as that could be improved? ~ . . . . . VIII. 11:45 Structural Issues Affecting the City's Long-Term Future 12:15 · Premise: Over the long term, the City'sfinancial situation will affect and b~ affected by economic development, annexations, anlI the level and quality of services we provide. Because these is~ues are linked, we will examine them in relation to one a'nother. The long-term fin~ncial outlook · What is the City~ financial outlook in the next J 0- J 5 years? · What does it indicate in terms of challenges facing the City Lun:~d the ChOicefilable to "'? CouncillMT Members Everyone CouncillMT Members Iwen/Everyone IX. 1:00 Structural Issues for'he Long-Term (Continued) Note: During this discpssion we will take a ten-minute break when appropriate. a. Annexation Everyone What impacts mig~t the annexation of new neighborhoods . and 20,000 peopfe"in 2007 have on our immediate financial situation? On the ievel and quality of services that our citizens voted for in approving Proposition J last year? . What could be the"long-term impacts of annexation on our ltc financial situation! particularly in light of the expiration in ten years of the S~ate 's rebate of a portion of tax revenues if annexation is app~oved? On the level and quality ofservices? . What might be the.'impacts of annexation on City facilities and office space, including City Hall, the jail and ~ ' maintenance facilities? . b. . l Patrickn<athy/Everyone EconoIlllc Development , . How might the economic development initiatives we have "launched in the pa'"st few years affect the City's finances? . Are there limits to~how those initiatives can influence the City's long-term financial situation? . What might the im}acts and limitations of current economic development initia'nves on our long-term financial situation indicate about futbre economic development efforts? c. Level and <i!~ality of Services Everyone . What do the imme~iate and long-term financial situation and a potential annexhlion in 2007 indicate about the ability of all . of us to sustain a high level of service at relatively low costs? ~ I X. 3:15 Other Issues on the Horizon Everyone During the intervils with Jim Reid, Council members voiced . interest in a wide ~ange of issues, ranging from transportation to the City 's invol~ement in delivering human services to the community's need for a performing arts center. In this brief discussion we will "put on the table" the handful of issues that we think may reqJire the City's attention and action in the next 3-5 year< 1 XI. 3:45 What are We Taking Away from Today's Meeting? Everyone 4:00 Adjourn L l Financial Position Update ,~ \ Federal Way ~ity Council Retreat ~ January 27, 2r7 - 1 ... ~ Financial S4bility . Past: 2% struc~al deficit between general fund revenues and expenditunk . N ear- T erm (6 ~ 8 years): Utility tax could fill operating gaps. I . Long-Term: Need change in both revenue and expenditure trends. , I ~ VIII - Structural ISsues Affecting the City's Long-Term Future Presented by I~en Wang, Management Services Director ~ Page 1 of 7 .. ~ Past oRevenue~oss and growth limits placed by citizen initiatives oHyper es~alation of medical, pension costs pushed expenditure growth 2006 %of Avernge WeIghted General Revenue Estimate Total Growth Growth Sales Tax ~ $ 12,12 34,15% 3,50% 1.20% Ullity Tax TransfEtr 1.64 4,63% 5,00% 0.23% A'operty Tax \ 8,69 24,49% 1,50% 0.37% Garmling Tax :.. 1.25 3,52% 0,00% 0,00% CJ sales .. 1.95 5,48% 4,00% 0.22% SSR Except Fuel iTax 1.06 2,98% 3,50% 0.10% Franchise Fee ... 0.82 2,30% 3,50% 0,08% R3riTillDevelopmenl 5ervces 2,81 7,91% 3,00% 0,24% Street M&O FuellTax 1,20 3,37% 0;00% 0,00% hterfund service'M&Q 0.56 1.58% 3,00% 0,05% Other Services -... 1.39 3,92% 1.50% 0,06% Msc Fees ... 1,11 3,14% 0,00% 0,00% Fines & Foreture.~ 0,90 2,52% 0,00% 0,00% OVerall Revenue Growth Rate $ 35.49 100.00% 2.54% .. General ExP(lnSe~ 2006 %01 Average Weighted Es Urn ate Total Growth Growth Wages .. 20,58 58.00% 3,50% 2,03% Benefits ~ 5,68 16.00% 10,00% 1.60% Maintenanc.e and operationsupptes 0,89 2,50% 3,00% 0,08% Services (utility,malntenance) 5,15 14,50% 4,00% 0,58% ntergovernmental (Jail. 911, KC, WSOOl) 3,19 9.00% 3,00% 0,27% Total " $ 35.49 100.00% 4.56% Annual Olfferencel. $ (0.71) -2.01% 2004 KC Cities Per ~ Capita General Fund Revenue* Rankin ~ ~8.105 . $281~~:: ~.690 '1::: *For better comparability the General Fund revenues are ~ adjusted to exclude fire and I library costs for jurisdictions" providing those services. , I '~ 04 Average Population: Average GF Revenue: Per Capita GF Revenue: 04 Federa. Way Population: FW GF Revenue: Per Capita GF Rovenue: l .. $0 $400 $800 $1,200 $1,600 "", m ". U" 9 0 Tuk"iw Snoqualmie lS$ll.qunh Hlmts Point Medina Seattle Scalae Woodin\'ille Skykomish Auburn Redmond Yarrow Point BOlhcll A\'crn~ North Bend Bellc\'lIe el)'de Hill Mercer Island Kirkland Algona Renton Sommnmish Kent Enumclaw Carnation Shoreline Om'oll Kellman: Beau:" Arts Village Buricn Black Diamond Normandy Pork Des Mo ines Lnkc Forest Park MnplcVnllC)' Newcastle Co\'ington Pncific Fcdeml Wa}' - Average S678/Person ,.,. $'S'4 . . ,., - Federal Way S3521Person VIII - Structural Issues Affecting the City's Long-Term Future Presented by Iw~n Wang, Management Services Director I Page 2 of 7 :~ " '~ Near- Term ~ption . Operating Utility lfax . Ulllity Tu Transfe~ . prOPOsill'" 1 Ulllity Tax ~ -Utility Tax could backfill operations gap -Stabilize expenditure growth PA YO Capital Utility Tax PAYG Capital Utility Tax $0 so ~ $4 .. $1 '- ~ J $3 so .. .. $0 2OCl!I 200G 2007 2006 2009 2010 2011 20'2 2013 2014 20'~ Aelu Proj AdOp AdOp Proj PrQj PJoj proj Pfoj Proj ProJ ... , Assume Council would continue the practice of transferring capital utility tax to backfill operating gap a!-in 2007/08 budget, ... t $0 200$ 2006 2001 2008 200i 2010 2011 2012 200 2014 2015 A.clu Proj AeSop Adop Proj Prol Proj Pro! Prol Proj proj Assume no change to'current debt repayment schedule. 5 ~~ Near- Term ~apital Resources L ,teomblned Capital Resources ~ $8 " . REEf . PAYG Capital Utility Tax I I L- $6 $4 $2 2CaJ :8:iB' 2C(1l 2CUl 2lJJ9 lOW 2011 2012 2013 2014 2015 ACtU!ll Aa:U;; Ad::lI1e ~e P'qec Pfqee Prqec P.qec Prqee Prqs:: PrCiec ,~ ... VIII - StruClurallles Affecting the City's Long-Term Future Presented by I~en Wang, Management Services Director t Pag.3of7 . $0 t . ~ l Long- Term {inancial 2015 % of Weighted General Revenue proJ. Total Growth Growth sales Tax .. Uiity Tax Transfer R'operty Tax ,~ Gan'llllng Tax ,~ CJ sales .. SSR ExceptFuell Tax Franchise Fee .~ ~rrritlDevelopme,('It Services Street M&O Fuel Tax nterfund servica M&O Other services ~ Msc Fees . b- Fines & Foreture 'L. Overall Revenue Growth Rate .. \, $ 15,51 30,87% 5.00% 9,79 19,48% 7.00% 9,98 19,98% 2.50% 1.20 2,39% 0,00% 3,06 6,08% ,6,00% 1.25 2,50% 3.50% 1.11 2,21% 5.00% 2,84 5,65% 4.00% 1,20 2,38% 0,00% 0,83 1,65% 3,00% 1.45 2,88% 1.50% 1.12 2,23% 0,00% 0,92 1.83% 0,00% $ 50.26 100.00% I I 1.54% 1,36% 0,50% 0,00% 0,36% 0,09% 0.11% 0,23% 0,00% 0,05% 0,04% 0,00% 0,00% 4.28% I General Expenses' wages ,~ Banens '.. Maintenance and "operation supplies Services (unity, niaintenance) ntergovernrrental (.laD, 911, KC, WSOOl) Total . Annual Differencel . 2015 %01 Walghtad estimate Total Growth Growth 29,22 58,25% 3,50% 2,04% 11,19 17,47% 9.00% 1,57% 1.12 2,28% 3,00% 0,07% 7,04 13.n% 4,00% 0,55% 4,05 8,22% 3,00% 0,25% 52.62 100.00% 4048% (0.10) -0.19% t '~ ~ Translates into Economic Development It. :~ ADDITIONAL Annual Growth Needed (for illustration purposes only): , 1.5% sales tax increas'e in 2015 = $232,500 Equivalent Retail Actt"vity = $27,352,941 Productive Retail Sq F.'Dotage @ $275/sf 100,000 Sq Ft I l VIII - Structuralls~ues Affecting the City's Long-Term Future Presented by Iwen Wang, Management Services Director ~. Page 4 of 7 .. .. l. ,Brood b-' bu,i,l'" ox,""illll & 'i""ifi",,"'l'l Long - T erm. r .Stable staffing & slower benefit and pension increases Ii . Economic developme~t in and beyond the city center . Increased activities fr~m existing businesses ~ . Diversified business ~ase: mixture of different type of services, retail, offices and other ",era, would increa", day and nighttime population, ~ I ~ I ~ :.. l Risks/Challenges ~. . The projection does n~t appear to allow expansion in staffing or service levels ... . In addition, service d'mands from increased business activities may not be fully addressed '~ . Time to realize gain from economic development efforts is uncertain . Substantial downturn~f regional economy , . Legislative action (sales tax holiday?) . Manage labor contra! costs/general wage increases A . ft.~ . . nnexatlOn costs a er state revenue expires I ~, ~ 10 VIII - Structural Issues Affecting the City's Long-Term Future Presented by Iw~n Wang, Management Services Director t. Page 5 017 . . ~, Possibilities t · Pension bill to repea~ain-sharing provision for PERS I and 3 after one more distribution, w~ich will slightly reduce the projected growth rate of pension costs . . 2007 SST Legislation. . ~ 11 Balancing T)ols Available to Council .. -Operating and Ca~ital Purposes: ;.Property tax lid lift * 'I'.. ,. Revenue based BL' ,.Admissions Tax ;. B&O Tax ;.Additional Utility Tax * ;.Fonn additional speciai~districts (& access to additional property tax) * ;.Adjust user fees ~ ,.Service reductions ~ · Requires simple majority vot~r approval. (Staff is not advocating or suggesting Council take action. This is simply a list of options available if ,,' w'"'"redol.) t " ~ VIII- structural Jes Affecting the City's Long-Term Future Presented by Iw~n Wang, Management Services Director t Page60f7 '~, 'I. ~ :l Capital Funding Tools L. . Additional Re.)enue Options for Capital >- Bonds (supporte~ by excess levy) ** ,. LIDs ~ ' ,. Late-Comers' A\reement .. Impact fees .. Requires super majori1J voter approval. . 13 I , ~ Questions?1 , I .t VIII - Structural Issues Affecting the City's Long-Term Future Presented by I~en Wang, Management Services Director Page 7 of 7 14 'I. 't. I Annexa~ion Status Report ~ . Federal Way ~ty Council Retreat January 27, 20r ~, '~ . ~ Five tracks l o Interlocal a~ement with King County o Boundary dIsputes S bd. .. ~ . U IVlSlons . Roads ~ o Resolution, BRB process, and election date o Financial issu\s . ~ o PublIc outreach ~ ~ IX - structural Issues fclthe Long-Term (continued); a - Annexation Presented by D~rek Matheson, Assistant City Manager l Page 1 of 6 ~ ~ '~ Interlocal agreement .. o Purpose - Put the~following into writing: . County's $3.5 J'llion contribution o $2 million C~rrent Expense Fund o $1 million intkind road overlays o $500,000 REET \, . Annexation bouddaries o Largely deten~ined by PAA agreements from early 1990s o Some minor ~hanges . comPlextegotiation process to make major changes . Transition of set,ices & property, o Large amounts of park and SWM property o January I, 20~9 transition date . Based on interlO~ls for Redondo East, North Lake, & Parkway ~ ~ l I ,I. ~ Interlocal aheement ... o Seven month\rocess . Involved ne~rly every department in City & County gov~rnment o Almost an in~h thick o Ready for Ci~ & County council processes in F ebruaryf .., . Scheduled for County CouncIl commIttee revIew on Feb. 5 '~.. I IX - structural Issues Jr the Long-Term (continued); a - Annexation .. Presented by Gerek Matheson, Assistant City Manager I Page 2 of 6 ~ ~ Boundary <ttsputes - Subdivisions ~ o Stone Creek , . Subdivision split'between Federal Way & Milton PAAs . Two meetings whh Milton's Mayor & City Administrator . Federal Way agF~d to take lots in own PAA only o Resolve remlining 13 lots at a later date o W oodbrook ~ . Open space tract. lies east of P AA boundary . Federal Way, Album, and King County agree Federal Way should take parcel '~ o Others I . Minor mOdifica'rs' especially with A!gona & around Spider Lake I . ~ . .~. Boundary disputes - Roads .~ o P AA agreement between Federal Way & Auburn not .. . clear on roads ~ o Staffs met and tgreed to divide roads into segments . Each city takes approximately half of segments (in theory) . MOD to be sr~ned by chief executives . o Federal W ay t0~k Peasley Canyon Road to connect separate portiohs of P AA ~ . Eligibility fOl;,tate money · One ballot mefure ~ IX - Structural Issues for the Long-Term (continued); a - Annexation Presented by l!>erek Matheson, Assistant City Manager t Page30f6 " ~ Resolution, BRB process, and election date~ .~ " o Council. needS'lo adopt resolution initiating annexatIOn . Staff will present to Council at same time as interlocal . Staff will file~PPlication with Boundary Review Board o Jurisdiction not invoked = 45 day review period o Jurisdictioti~invoked = undetennined o Council needs to set election date . Largely depetfuent on BRB , . Must be at le~st 60 days after Council action I ~ 'I. ~ Financial islues .. o Annual revenu~s from annexation area: $7.4 million . City taxes, fee\, etc.: $4.6 million . State sales ta~\credit: Up to $2.8 million o , Expires afte~ 10 years . (King county~ontribution is one-time money) o In 2003, P AA study identified budget needs o In 2006, depart~ents were asked to update budget needs .~ . Staff I . Equipment neells · Timing Ofhirei & purchases IX - Structural Issues fQthe Long-Term (continued); a - Annexation Presented by D.t~r,.,ek Matheson, Assistant City Manager .. Page 4 of 6 .~ 'I. ~ Financial istues ~ . Capital rev~ues and expenditures not included o P AA infrlstructure and facilities needs will be merged into eXistihg CIP/TIP and prioritized together with " current CIty needs o Next stepst . Staff will al1ign revenue and expenditures . Council wil~ need to add new revenues & expenditure's to budget if ballot measure is successful I . l ~ .. . I Public outreach ~ o Past work' . Prepared educational materials, i.e., handouts & brochures' . Met with t~6 HOAs o W oodbro~k oSterling prk . Positive reactions . Good medi~ coverage . Excellent s~port from County f , '~ 10 :1 IX - Structural Issues f!>>r the Long-Term (continued); a - Annexation Presented by Derek Matheson, Assistant City Manager '.. Page 5 of 6 ~, ~ Public outr)ach .. o ,Future work (tenhtive; Council input welcome) . Develop web sitt . Issue press relea~es . Send mailings ,~ o Q&A I o Map I o Website o Future open houses . Use City Updat~"newsletters and videos . Host open house~ " o By P AA subareas or elementary school attendance areas ~, . Reach out to and respond to HOAs . Solicit pro & cOl}committees for voter's pamphlet l 11 :.. ~ Questions? l 12 k IX - Structural Issues for the Long-Term (continued); a - AnnexatioJ1 Presented by D~rek Matheson, Assistant City Manager , Page60f6 1 A Federal Way DATE: TO: VIA: FROM: SUBJECT: January 27,20071 City Council for 2007 Ret~e . Neal Beets, C~.t a~age . '" Patrick Dohe ~ll1omic Development Director Economic ev{opment Accomplishments and Initiatives ACCOMPLISHMENTS 2006 saw great strides towards achieving our Economic Development goals. · Related to City Center r!elopment, we accomplished more in 2006 than in any prevIOus year. I, o City Center Marl{et Info. After the Leland Consulting Group presented its City Center malket study and redevelopment strategies for City Council consideration in late 2005, we continued to work with Leland into 2006 to market this inform~tion and our City Center's great redevelopment opportunities to th~development community in the region and nationwide. o Marketing Brocbhre. A professional marketing brochure, containing the highlights from the'Leland market study, was produced and distributed to ~ hundreds of devel0pment and real estate firms. o City Center Redefelopment Forum. In late June we held a City Center Redevelopment Fq~m. Approximately one hundred people were in attendance, representing the business, real estate, finance and development communities fromlhroughout the region. o PIlPAC. During 2006 a 12-member committee, representing community, civic and business ~nterests, met over several months to develop guidelines for City Council ad'option related to potential public-private partnerships (PPP AC). , o Engaging Proper~ Owners. Throughout 2006 City staff made contact with key property Swners in the City Center, including the Commons mall, to discuss redevelo~ment possibilities, while even offering any assistance. In fact, the City engaged architects to draw up redevelopment concept sketches for some key properties in an effort to help property owners envision the possi~lities. o Planned Action. ".tfter a multiyear effort, the City published a Final EIS for the City Centerlhat captures development impacts up front over a ten- year period and su15stantially unburdens potential developers from the expense and unpre~ictabi1ity of individual environmental reviews. In fact, City Council is cUFf~ntly scheduled next month to approve the Ordinance that ,;il.l adopt this,.tE,IS and put into place the corresponding streamlined permIttmg process.' IX - Structural Issues for the lngo Term (continued); b - Economic Development . Presented by Patrick Doherty, Economic Development Director l PagelofS o Zoning Changes., We began and ended 2006 with two significant sets of City Center zoning changes. In February the City Council passed a sweeping set of amendments that removed barriers to redevelopment and retooled our provi~ons to encourage mixed-use and more pedestrian- , friendly new development. And in December the City Council approved substantial the Cit~ Center Core height limit for new multifamily and mixed-use buildings from 85 feet to 200 feet. o AMC Theaters Site. And last, but certainly not least, in December the City Council purc~sed the former AMC Theaters site. We are scheduled to pursue a RFQ ahd RFP process that will lead to selection of a , development team by June of this year. More generally speaking, ,U1Side of City Center, we were also busy in 2006. o Pac Highway Redevelopment. Responding to the need for redevelopment in ~ther commercial areas in the City, we concluded a survey and compil~ a database of redevelopable properties along the northern stretch o:f~he Pacific Highway corridor. This information is readily accessible tia our City website. o Regional Respon~iveness. We have worked closely with EnterpriseSeattle t~ respond quickly and thoroughly to any and all inquiries coming t~our region from potential new businesses. Councilmember Ja~k Dovey has joined the Board and has become more actively involved i~ EnterpriseSeattle's initiatives. ' o Business Outreach. In 2006 City staff made great strides towards our goal of reaching o~t to the business community through personal business visits. On a weekly basis, Economic Development staff have been visiting businesses through,out the City to get acquainted, make ourselves and our services known, an\! field inquiries, complaints and issues of concern. The reception has been~reat and we're happy to report that all issues raised have been addressetl and resolved. o Marketing. While.marketing can be a bottomless pit of effort and expense, we have been selec\ive in targeting key marketing opportunities in both to. local and national publications to attract interest from relocating or expanding busines~es. What's more, at the end of 2006 we proactively marketed to the tog'lOO fastest-growing businesses in Washington State and have started to~eceive responses from interested companies. o Permit Process Improvements. On another front, in 2006 we revisited our permit process'~takeholders group from previous years to see how our prior permit process improvements had been received and learn about additional ways we "could improve the development regulations and , , processes. This effort yielded additional great ideas that we will pursue in 2007. . t o Small Business Development Center. Last year we scored a great success by joining bd contributing funding to the Highline Community to. College Small Business Development Center right here in Federal Way. ~ IX - Structural Issues for the Long-Term (continued); b - Economic Development . Presented by Patrick Doherty, Economic Development Director I Page20fS . ~ Starting only mid-year the SBDC has seen great reception within the business community and has logged 21 active clients as of the end of December. With ~any ofthose clients coming on board towards the end of 2006, we expec~to see some significant business investment in the first half of this year as a result of the SBDC' s efforts. So far a total of $435,000 in loan funding has been secured and two new jobs created in Federal Way in the'first six months of our participation in the SBDC. With the sharp rise~in clients towards the end of the year, we anticipate that these numbers~will grow dramatically in 2007. · Lastly, several important ltivities related to tourism promotion occurred in 2006: N. Mk. n~ . R .. h . k. o ew ar etmg ~ampalgn. ecogmzmg t at our tounsm mar etmg efforts had been sj-mewhat scattered and produced almost entirely in- house, we hired a ~nsu1ting firm to provide us expert assistance in developing a targeted tourism-marketing campaign, as well as a new suite of professionally d~signed tourism-marketing materials, such as a new tourism map, touri~m brochure, events and attractions flyer and other similar materials. ~ o TEG. The City continued to provide Tourism Enhancement Grants to numerous organizltions to help fund events, festivals and sports competitions. ~ ' o Events, Festivals,ICompetitions. Again in 2006 the City contributed sponsorship to the Women's Triathlon, last year presented by Subaru and the Ran Woo-Ri Pestival. In addition, Federal Way joined with SeaTac, Kent and Tukwila ~n hosting the Senior Softball World Championship that brought thousands'~f participants and spectators from across the country and several foreign. countries. CONTINUING EFFORTS and'~NITIATIVES As we look ahead to the remainder of 2007, there is much more work to be done to promote our Economic Developm\nt goals. . In the City Center we willtontinUe to work in several key areas: o AMC Theaters Site. We have already begun, and will continue through with, our RFQ and'RFP process for redevelopment of the AMC Theaters site. We anticipatJ selecting a developer team in June, with negotiations ~ to follow over the Summer. o Engaging Proper~ Owners. We will continue to work with key property owners to encoura~ redevelopment. The City is making a good-faith effort to be a partnh in these discussions by offering to facilitate redevelopment dis~ussions or workshops or even offering to provide architectural and si\e planning assistance. Next on our list of key areas is the Gateway Cent~ development. We hope to convene a public meeting IX - Structural Issues for the ~ng- Term (continued); b - Economic Development Presented by Patridk Doherty, Economic Development Director t Pag.30fS ~ . with Gateway CeIi~er property and business owners within the next few weeks. We will offer meeting facilitation, as well as architectural expertise to provid'e sketches and site plan concepts support to the meeting. ~ . o Anticipated Development Activity. Given the increasing level of interest in City Center red~"velopment opportunities on the part of both existing property owners an\} prospective developers, it is very likely that 2007 will II. see active development activity in our City Center. It is also possible that the City will see re~uests for public-private partnership, which will require staff and Council ihvolvement and review, as well as public involvement. o Planned Action O\dinance. With the Planned Action Ordinance slated for adoption in Fe~ruary, we plan to trumpet that success to the regional press in order to attract the attention and interest of area developers. More generally t!irOUghouttlie City, we will continue to pursue efforts to attract and retain businesses. ~ o SBDC. We will continue to work with the SBDC to assist small businesses in Fede~l Way in their growth and expansion plans, and we '.. will work with SBDC staff to market their services even more actively. o Pac Highway Red)velopment. We will complete the database of redevelop able proP.'erties in the southern Pacific Highway corridor and make that informavon readily available on our website. o Regulatory Improvements. We will continue to pursue additional enhancements and'~mprovements to our permit processes and regulatory provisions, as advitsed by our stakeholder group and other public comment. o Other Business Di\tricts. We will begin an effort to explore the redevelopment pot~ntial of some of the other business districts in the City. o Be/Bp Zones. Cit~ staff, Planning Commissioners and City Councilmembers ~ill work together on a project to revamp the Community Busin~ss (or BC) and Business Park (BP) zones throughout the City. Initial ditection is to keep the BC zone, with increased height limits for mixed-us\ development, in the northern half of the City, while combining the BC Fd BP zones in the southern half of the City and applying a new designation; Commercial Enterprise or CEo o Business Outreach. We will continue to reach out to our business owners and managers to nfake our presence known on a business-by-business basis. In addition,~e will explore ways to provide greater levels of business assistance. and liaison with the SBDC. o Marketing. And w\ will continue to work WIth EnterpriseSeattle and .. through our own marketing efforts, to market Federal Way and respond to ~ any and all regiona1 inquiries to make sure that Federal Way is up-front among the location\ considered by growing and relocating businesses. , , IX - Structural Issues for the Long-Term (continued); b - Economic Development Presented by Patrick Doherty, Economic Development Director l Page40f5 . I ~ And finally, regarding tourism, o Marketing campLgn. We will continue the work already begun to roll out a whole new t~urism-marketing campaign, with new materials and methods. Look fo~ new tourism maps and tourism brochures throughout the community bY~his Spring. ' . o Seattle Sports Commission. The City Council has approved a paid membership in the~eattle Sports Commission starting this year and we have been invited to sit on their Board of Directors. Now more than ever we will be able to ~osition Federal Way as a location for a greater number of sporting eventsfuld competitions, with the accompanying economic activity that they c~eate. o Events, Festivals lnd Competitions and Major Event(s). We will continue to partnelwith local and regional organizations as they provide a full array of eventJ, festivals and competitions in our community, and we will be looking fOlrard to international-caliber sporting events in the future, such as OIY.ID1" pic Trials or National and International Championships. . IX - Structural Issues for the Jong-Term (continued); b - Economic Development Presented by patrictDoherty, Economic Development Director , I Page 5 of 5