Council MIN 03-09-2013 RetreatTHE FEDERAL WAY CITY COUNCIL'S
Strate�ie Planning Retreat
Saturday, 9 Mareh 2013 :9:00 a.m. - 4:00 p.m.
Courtyard Marriott Hotel 319 i0 Gateway Center Bivd. S, Federal Way
SUMMARY
of the Meeting's Key Discussion, Decisions and Agreements
15 March 2013, Edition 3
Ex�cortvE So�Y
At its 2013 Annual Strategic Planning retreat the Federal Way City Councilmembers agreed that:
1. They will decide at a Council meeting in the near future whether the City should: a) fund the
schematic design of the proposed Performing Arts and Conference Center (PACC), and then use it to
solicit public comments and reactions on whether to move forward with the next phase through a
statistically valid survey and/or community forums; or b) engage citizens through the statistica�ly valid
survey and/or community forums before funding the schematic design to gauge the level of
community support #or the PACC.
2. The four-acre AMC Theatre property should be developed as roughly 509'o park and 5096 multi-level,
multi-use urban development. Regarding the park, the Council expressed a preference for the
"hardscape" options so that the space can be used throughout the year. Regarding the development,
the Council favors a mix of commercial and residential uses, with mid-rise buildings not to exceed the
number of s#ories allowable with wood-framed construction. Councilmembers also suggested the
development should not block the view of Mt. Rainer from the PACC, if it is built.
3. The Mayor's O�ce and Gommunity and Economic Development Department should work with the
developer who expressed interest in developing the commercial-residential half the AMC site. The
Mayor's Office should provide regular updates to the Council on the process and direction that the
developer is intending to go.
4. The City should be "rebranded" with a new "tag line" and marketing strategies. Councilmember Kelly
Maloney will serve as a resource on this endeavor.
5. The Council should form an "ad hoc" committee of a handful of citizens with expertise in economic
development to meet periodically with representatives of the Council to discuss ideas for expanding
economic growth and increasing the number of jobs in Federal Way. The Council also agreed that
FEDRAC should provide oversight and support to this group. Councilmembers Dini Duclos, Bob Celski,
and Kelly Maloney will serve as the CounciPs liaisons to the ad hoc committee.
6. The City should attract a four-year insiitution of higher education to locate a branch campus in
downtown as a key strategy for achieving the City's vision for downtown. The Council suggested that
the City may �nd it easier to attract a private university than a public one given that by state law the
City could work with anly Highline Community College and Central Washington University. The
Council afso suggested that a university with programs in aerospace might be attracted to locate a
branch campus in downtown Federal Way given the close proximity to The Boeing Company and
other aerospace companies.
7. The City Council should host a meeting with the School eoard to discuss the City's vision for the
future of downtown and the need for the City and School District to work in partnership to achieve it.
Ce�cu. A�r�cutn�s Mvru�. Ir�'s uxo PAnt Fo��►� Fe� PACC
The first and longest discussion of the retreat focused on the Performing Arts and Conference Center.
Community and Economic Development Director Patrick Doherty briefed the Council on the PACC. Here
are a few highligMts of Patrick's presentation:
� The team of Lorax Partners, LMN Architects, and Mortenson Construction produced a concept for the
PACC, but that concept is not the detailed design that would be needed to attract public, non-profit,
and private funding.
� For the PACC to be �nancially viable in the long-term, the performance hall needs to have between
550 and 700 seats with approximately 14,000 square feet of conference facilities.
■ It also appears that an adjoining or adjacent hotel would make the project more viable.
■ The estimated cost of the PACC is $31J5 million, which includes $5 million for infrastructure
improvements.
■ Deducting funding already available, the remaining balance is approximately $15.365 million.
• If a fund-raising campaign succeeded in raising funds from a variety of sources, the remaining balance
could be anywhere from $2.865 to $9.365 million.
■ The federal govemment's New Markets Tax Credits Program could help reduce the balance
significantly.
� The cost of producing the more detailed design of the facility will be approximately $950,000. Of that
amount, 50% has already been allocated by the City. Additional funds from a variety of public,
private, and non-pro�t sources are also available, including a grant of $120,000 from 4Culture and a
potential grant of up to $190,000 from Building for the Arts. Some of those funds could not be used
for any other purposes but the design work.
� The State's grant of $5 million, which was used to purchase the site upon which the PACC would be
built, can only be used for construction of the PACC. If it is not used within ten years, the funding
must be returned to the State with interest.
� The PACC is intended to be a catalyst for the revitalization of downtown and expected to benefit
Federal Way by bringing additional jobs and businesses to downtown that are directly or indirectly
related to the Center.
Following the presentation, the Council discussed how to proceed. Some Councilmembers expressed
concern about the overall cost of the PACC and whether or not the City would be successful obtaining
grants to reduce taxpayers' costs. Other Councilmembers expressed confidence that, given the City's
track record, grants would be obtained and the New Markets Tax Credits Program could result in
significant private and non-profit sector funding for the PACC.
The Council carefuliy considered the question of the timing for authorizing the more detailed design work
and providing $950,000 to fund it. Everyone voiced support for engaging the public in discussions about
the PACC. Some Councilmembers thought it would give the public more to react to and comment on if
the design were completed before citizens' opinions were solicited. Other Councilmembers suggested
that the level of public support for the PACC should be measured before the design is commissioned.
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In response to the concern about the overall costs of the project, Mayor Priest and Patrick stated that the
City can tell the team that renders the schematic design to "tighten costs" as much as possible to reduce
the estimated $31.75 million cost of the project.
Councilmembers agreed that for the PACC to be constructed, the Conference Center would have to be
part of the package. Questions about adequate parking were also raised. One possibility is that parking
would be partly provided by the hotel. And there were concerns about whether or not the City would
need to raise taxes to help fund the PACC. Most Councilmembers indicated they would not raise taxes for
this purpose, and some said that the availability of public, private, and non-profit funding sources meant
that increasing taxes has not been considered when funding the construction of the PACC was previously
discussed.
Finalfy, a Councilmember said that if the City proceeds, teams of Councilmembers and staff should be
created to strategically approach potential funders.
As a result of the discussion, these appear to be the mutual interests of the CounciL•
1. Engage the public in conversations about the PACC to gauge the level of public support for it.
2. If the PACC is built, fund it through a variety of revenue sources—public, non-profit, and private—to
ensure the entire cost of the facility is not borne by Federal Way taxpayers.
3. If the PACC is built, ensure it is a high quality facility of reasonable cost.
4. Provide sufficient information to citizens, potential funders, and prospective partners so that they
and the City can make informed decisions.
5. Consider the potential construction of the PACC in the context of the Cit�s vision for the future of
both downtown and the AMC Theatre site.
Toward the end of the discussion the Council agreed that they will decide at a Council meeting in the near
future whether the City should: a) fund the schematic design of the proposed Performing Arts and
Conference Center (PACC), and then use it to solicit public comments and reactions on whether to move
forward with the next phase through a statistically valid survey and/or community forums; or b) engage
citizens through the statistically valid survey and/or community forums before funding the schematic
design to gauge the level of community support for the PACC.
Cou�ca �a�s Cons�sus ox Furu� DEVao�arr oF n� AMC'l�a� SrrE
The Council then turned its attention to the other four-acre parcel that the City owns in downtown, the
former AMC Theatre site. During the past several months, City staff has worked with architects and
developers on a concept that includes a two-acre park and two acres of commercial and residential
development.
The Council quickly reached consensus that this concept should be implemented. The Council favors
building a park on half the site, and indicated a preference for more hardscape than grass because of their
interest in making the park usable during as much of the year as possible. As Patrick noted, this would
make the development more a plaza than a traditional park.
The Council also expressed support for developing the other half of the site as a mix of commercial and
residential development, with a variety of buildings at mid-level heights (two to four stories rather than
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one story or six), a pedestrian-friendly orientation, parking to accommodate residents, workers, and
shoppers, and some water features and natural plantings.
The Council agreed that the Administration should continue to talk with the developer who stated an
interest in overseeing the design and construction of the two-acre office, retail, and residential
development. Therefore, before reaching out to a variety of potential developers or issuing a Request for
Qualifications (RFQ), the City will continue its dialogue with the individual who has come forward.
CeuHCa, Ac�s ro �n �s�ESrs ST�rr��s To Ea�aMn Ecano�c 0�8�
After conctuding its discussion of the AMC Theatre site, the Council discussed strategies to expand
economic opportunity and job growth in Federal Way. These were the major agreements that emerged
from the conversation:
1. The City should be "rebranded" with a new "tag line" and marketing strategies.
The Councifinembers favor replacing the current tag line, "Federal Way, It's All Within Reach." While
some stated that a new logo may not be needed, they are all interested in new marketing strategies,
techniques, and tools.
Some of the interests expressed by Councilmembers were: a) develop a holistic approach to
marketing the community that focuses on the entire City, not just downtown; b) ensure that
marketing is cost effective and a long-term investment; and c) ensure that the entrances to the City
from I-S are welcoming and help to distinguish Federal Way from other suburbs.
To achieve these interests, a few specific suggestions were voiced:
o Hold a competition among high school students to rebrand the City. Offer college scholarships to
the first and second prizewinners.
o Use the development of the Toys-R-Us and AMC Theatre sites as a marketing strategy or tool to
lure businesses and a university's branch campus to downtown. If the PACC is built, the City may
be able to market its arts and cultural events in a manner similar to how Tacoma has marketed
itself as a center for the arts.
o Improve the City's marketing to tourists and enhance the City's website for tourism. Examples to
learn from are the websites o€ Edmonds and Kirkland.
o Clean and maintain the entrances to the City from I-5, including cutting down weeds and planting
shrubs or flowers.
Cauncilmember Kelly Maloney volunteered to work with staff as a resources on this endeavor.
2. The Council shou{d form an "ad hoc" committee of a handful of citizens with expertise in economic
development to meet periodically with representatives of the Council to discuss ideas for expanding
economic growth and increasing the number of jobs in Federal Way.
While this committee could someday evolve into something more formal, such as a downtown
association, the sentiment of the Council was that initialfy this group should be informal, casual, and
small, and should include Federat Way residents and/or business owners with expertise in job
creation and business management.
The Council also agreed that FEDRAC should provide oversight and support to the group.
Councilmembers Dini Duclos, Bob Celski, and Kelly Maloney will serve as the Council's liaisons to this
ad hoc committee. And other Counci6members expressed the desire to periodically attend.
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Note: During the meeting Federal Way resident Mildred Olay volunteered to be on the committee.
3. The City should attract a four-year institution of higher education to locate a branch campus in
downtown as a key strategy for achieving the City's vision for downtown. The Council suggested that
the Gity may find it easier to attract a private university than a public one given that by state law the
City could work with only Highline Community College and Central Washington University. The
Council also suggested that a university with programs in aerospace might be attracted to locate a
branch campus in downtown Federal Way given the close proximity to The Boeing Company and
other aerospace companies.
M addition to universities with aerospace programs, Councilmembers suggested that because of the
hospitals and medical services in the area and the presence of Weyerhaeuser, university medical
schools and colteges or universities with forestry programs might also be candidates to locate a
branch campus in the downtown core.
4. The City Counci! should host a meeting with the School Board to discuss the City's vision for the
future of downtown and the need for the City and School District to work in partnership to achieve it_
Finafly, some Councilmembers expressed an interest in hiring a full-time economic development director
and/or a part-time person to address tourism. it was acknowledged that these are ideas for consideration
during the budget development and adoption process, and would be considered alongside other priorities
of the Administration and Council.
'F�G1RS AA il1E �TSEA?
To end this year's retreat, the Council expressed their gratitude to the citizens who had attended,
especially those who stayed for the entire meeting, to Patrick Doherty for his presentations and for
answering the Councilmembers' questions throughout the day, and to the subcommittee of the Council,
Deputy Mayor 1im Ferrell and Councilmembers leanne Burbidge and Susan Honda, for having provided
direction to facilitator 1im Reid in the design of the retreat agenda. A common sentiment among the
Council was that this was one of the best retreats because the conversations were about important and
pressing issues, and were in-depth, thorough, and inclusive of everyone.
Approved by Council: March 19, 2013
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