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FEDRAC PKT 04-13-2004 ( City of Federal Way City Council Finance/Economic Development/RegionalAffairs Committee April 13, 2004 5:30 p.m. City Hall Mt. St. Helens Conference Room AGENDA 1. CALL TO ORDER 2. PUBLIC COMMENT 3. COMMITTEE BUSINESS A. Approval of the March 9, 2004, Minutes B. Economic Development Messaging Strategy C. Discussion of Public Outreach Component of City Center Redevelopment Strategies Work Plan D. Possible Ombudsman Job Functions Action Action Action Action 4. OTHER 5. FUTURE AGENDA ITEMS 6. NEXT MEETING: May 10,20045:30 p.m. 7. ADJOURN Committee Members: Eric Faison, Chair Jeanne Burbidge Jim Ferrell City Staff Patrick Doherty, Deputy Director, CDS E. Tina Piety, Administrative. Assistant 253-661-4105 K:\FEDRAC - Econ Dev\2004 - Agendas & Summaries\O4-13-04 FEDRAC Agenda.doc MEETING MINUTES In attendance: Committee Members: Council Members Eric Faison, Chair, and Jim Ferrell; Jeanne Burbidge (absent); Mayor Dean McColgan; City Manager David Moseley; Director of Community Development Services Kathy McClung; Deputy Director of Community Development Services Patrick Doherty; Management Services Director Iwen Wang; City Attorney Pat Richardson; and Administrative Assistant E. Tina Piety. I. CALL TO ORDER Chair Faison called the meeting to order at 5:33 pm. 3. PUBLIC COMMENT There was no public comment. 4. COMMITTEE BUSINESS A. Approval of the February 10,2004, Minutes - It was m/s/c to adopt the February 10, 2004, minutes as presented. B. Korean Sports and Cultural Festival- Ms. Richardson commented that the draft opinion from the Attorney General's Office spoke of in the Committee's memorandum is actually from the Auditor's Office. Many cities feel it is a narrow interpretation and she feels using Lodging Tax Advisory Committee (L T AC) funds for the festival would be appropriate. The Committee would like to see a copy of this opinion. The Committee discussed the funds for this project and how they will take a large amount of the LTAC budget. Mr. Doherty commented that the consultants could produce an event to fit whatever budget the City agrees upon; however, they feel a quality event that will draw large numbers and will be a signature event for the City needs the amount requested. The Committee would like to see the incentives for this festival. They also want major Korean organizationslbusinesses to commit funds so that not all funds come from the City. Concern was expressed that if the City pays for most of the festival, it would remove the incentive for others to donate. It was decided to table this issue to the next FEDRAC meeting. C. Work Plan for Considering City Center Redevelopment Strategies- Chairman Faison provided the Committee with a handout of possible work plan items divided into short-term, medium-term, and long-term. He commented that FEDRAC should be working on the City Center redevelopment, and then the rest of the economic development issues. Council Member Ferrell stated that creating an identifiable downtown is key and one way to promote that is to have a park, or some kind of green space, to build around. He would like the City to pursue purchasing (or even condemning, which would only happen if the City were not offered fair market value) property to achieve this. One issue to consider is whether the City will actively or FEDRAC Minutes March 9, 2004 Page 1 passively pursue redevelopment. It was felt there should be a compromise between the City actively purchasing property and having it developed, and passively having only plans that say what the City wants the downtown to be. It was m/s/c to request the staff to pursue the work plan (as outlined in the March 2, 2004, staff memo) associated with potential City Center redevelopment strategies, provide progress reports at each monthly FEDRAC meeting, and bring this issue back to the FEDRAC upon conclusion of the work plan for its consideration and recommendations to the City Council, with the amendment that the work plan will include consideration of property acquisition for a public park (or something similar) and other development activity. The Committee discussed Chairman Faison's work plan and were asked to provide feedback at the next meeting. 5. FUTURE MEETINGS The next scheduled meeting is April 13, 2004, 5:30 p.m., in the Mt. St. Helens Conference Room. 6. ADJOURN The meeting adjourned at 6:43 p.m. K:\FEDRAC - Econ Dev\2004 - Agendas & Summaries\March 9,2004, Summary.doc FEDRAC Minutes March 9, 2004 Page 2 CITY OF FEDERAL WAY MEMORANDUM Date: To: Via: From: April 2, 2004 Finance, Econo Development and Regional Affairs Committee David H. ity Manager Patrick Dohe u Director, Community Development Services Economic De e opment Messaging Subject: BACKGROUND Please see the attached memo to FEDRAC, dated 3/19/04, for background on this issue. At its March 16,2004 meeting FEDRAC members considered the staff proposal for a conceptual outline of an economic development public-messaging strategy and raised several questions and requested clarifications, tabling action on this item until the April 13, 2004 FEDRAC meeting. PROPOSAL Attached to this memo as Exhibit A is a revised conceptual outline of an economic development public-messaging strategy that could be used in public meetings with residents and existing businesses, alike. The revisions from the earlier draft are chiefly confined to outlining a broader range of economic development strategies used by other cities as examples for public consideration. Other minor wording revisions are mostly editorial. The format is envisioned as a Powerpoint presentation with copious photographic and graphic images, accompanied by a scripted narrative for the speaker. The outline breaks down the presentation into four main elements: 1. Since incorporation, the City has seen steady improvement in services and amenities as the result of both public and private investments. 2. Now, with declining tax revenues, the City faces tough fiscal challenges to maintain the quality of life and current service levels. 3. So what are the long-term options to take on this fiscal challenge of maintaining and even enhancing our quality of life in the face of declining tax revenues? 4. To meet this challenge from other cities as well as our own fiscal challenge, City Council established their number one priority to expand tax revenues and maintain services without raising taxes. Memo to FEDRAC, 3/2/04 Economic Development Messaging Page 2 of2 For each of these elements there would be explanatory and illustrative images, text and graphics, as detailed more in the proposal. The hope is that such presentations would engender the interest and response of the audience, leading to potentially valuable input for the consideration of City Councilmembers when considering action on any particular economic development or City Center redevelopment strategies. STAFF RECOMMENDATION Staff recommends approval of the proposed concept for economic development public messaging, to be followed by further development of the presentation. COMMITTEE ACTION "I move to forward the economic development messaging outline to the full Council for approval." Committee Chair Committee Member Committee Member £y:h¡k\+ A Economic Development Message Power point Presentation to residents and business community, delivering the key message that public funds spent on economic development are an investment in our future. I. Since incorporation, the City has seen steady improvement in services and amenities as the result of both public and private investments. A. Slide(s) with images of various attributes throughout the City, referencing growth in economic development. Accompanying narrative related to population, location, and workforce. B. Slides with key City services and amenities that add to quality of life - police, parks, senior services, schools, etc. C. Slide(s) showing SF homes, office buildings and retail buildings with message that these diverse components of the city's economy have contributed the needed tax revenues (property and sales) to help provide us with this high quality of life. II. Now, with declining tax revenues, the City faces tough fiscal challenges to maintain the quality of life and current service levels. A. Slide with graph, showing tax revenues and expenditures over a period of years. B. Slide showing impact of tax initiatives on revenues. The ability to continue City services is hampered as revenues and options are limited. III. So what are the long-term options to take on this fiscal challenge of maintaining and even enhancing our quality of life in the face of declining tax revenues? A. A few cities in the region have been investing for quite awhile and we can learn from the results of their investments and experiences. 1. Efforts in Tacoma: a. Strategies to encourage business growth in the neighborhood business districts and industrial areas; b. Tax: incentives for reinvestment in certain areas; c. Substantial investment to enhance the City Center and spur redevelopment; d. Comprehensive promotion and marketing strategies; e. Comprehensive permit-process improvements. I 2. Renton: a. Branding and marketing strategies (radio and print media ads, "Renton - Ahead of the Curve"), etc.; b. Targeted permitting, zoning and taxing strategies to encourage redevelopment of former Boeing lands; c. City Center "piazza," transit center, major redevelopment with commercial and housing projects; d. Relocation of automobile businesses and consolidation in new "auto mall." 3. Kirkland: a. 20+ years of buying up key waterfront properties for parks; b. Substantial investment in amenities in City Center (benches, landscaping, artwork, etc.); c. Planning and zoning that has accommodated redevelopment of City Center to dense, pedestrian-oriented, vital downtown with retail, entertainment, restaurants and housing. B. Other cities have only begun to invest in economic development and the returns are not yet known, but anticipated. 1. Kent: a. Investment in advanced manufacturing center; b. Investment in sports infrastructure to encourage visitors; c. Partnership with Sound Transit on Sounder station (invested in parking garage) d. Redevelopment of Borden chemical plant into Kent Station - a new urban village with commercial uses, a multiplex cinema, a community college and residential uses, all readily accessible to the converting former industrial property near its city center into a Sounder commuter trains. 2. Burien: a. Participation in Small Business Development Center; b. Purchase of a large section of its ailing central business district, including an ambitious redevelopment plan. An urban development firm has been chosen to redevelop the site into a true town center, complete with commercial, residential and government uses, plus ample public open space. 3. University Place: a. City has bought a large commercial site near its current City Hall and is in the process of selling that site to a development firm that will redevelop the site into a multi-story, mixed-use urban village that will serve as that city's town center. b. The City has calculated level of planned investment and forecast of increased tax revenues. IV. To meet this challenge from other cities as well as our own fiscal challenge, City Council established as a high priority to grow the City's overall economic engine, thereby expanding tax revenues and maintaining services without raising taxes. A. Three economic development goals were adopted by the Council at its 2004 Reue~: . 1. Help to grow and expand existing local businesses, (slide of good local small business) 2. Attract new businesses; and (slides of desired mixed use, business, office developments) 3. Intensify City Center development (slide of current city center aerial photo (with asphalt), change into slide of 3-D rendering (same framework) with tree lined grid roads with pedestrian walking and al fresco café by mixed use development. B. Ifwe achieve these goals, we can hope to see an increase in business activity, jobs for local residents, and tax revenue to continue needed city services and ensure the quality of life we all expect. C. It's important to understand, however, that these are long-term goals and will require planning and some level of City funding. Just like in the business world, we cannot expect to strengthen the economic engine without a vision and investment of time and money. CITY OF FEDERAL WAY MEMORANDUM Date: To: Via: From: March 19, 2004 Finance, Economic Developmen~1\ Re9-i,onal Affairs Committee David H. Mos~ty ManagefGJ)\f\. V Patrick Dohe~y Director, Community Development Services Economic Development Messaging Subject: BACKGROUND At its annual retreat in January of this year, the City Council expressed its desire to see a comprehensive strategy developed for addressing residents and businesses with messages about the City's economic development priorities. In particular, there was a statement about sharing with the public the City Council's interest in investing resources in growing the City's economy as a way of enhancing quality oflife, maintaining and enhancing City services, and keeping City tax rates low. An important piece of this strategy is to develop the concept for this economic development-related messaging. PROPOSAL Attached to this memo as Exhibit A is a conceptual outline of an economic development messaging strategy that could be used in public meetings with residents and existing businesses, alike. The format is envisioned as a Powerpoint presentation with copious photographic and graphic images, accompanied by a scripted narrative for the speaker. The outline breaks down the presentation into four main elements: 1. Since incorporation, the City has seen steady improvement in services and amenities as the result of both public and private investments. 2. Now, with declining tax revenues, the City faces tough fiscal challenges to maintain the quality of life and current service levels. 3. So what are the long-term options to take on this fiscal challenge of maintaining and even enhancing our quality of life in the face of declining tax revenues? 4. To meet this challenge from other cities as well as our own fiscal challenge, City Council established their number one priority to expand tax revenues and maintain services without raising taxes. For each of these elements there would be explanatory and illustrative images, text and graphics, as detailed more in the proposal. VI Memo to FEDRAC, 3/2/04 Economic Development Messaging Page 2 of2 The hope is that such presentations would engender the interest and response of the audience, leading to potentially valuable input for the consideration of City Councilmembers when considering action on any particular economic development or City Center redevelopment strategies. STAFF RECOMMENDATION Staff recommends approval of the proposed concept for economic development messaging, to be followed by further development of the presentation. COMMITTEE ACTION "I move to forward the economic development messaging outline to the full Council for approval." Committee Member 1)2 Economic Development Message Power point Presentation to residents and business community, delivering the key message that public funds spent on economic development is an investment in our future. I. Since incorporation, the City has seen steady improvement in services and amenities as the result of both public and private investments. A. Slide(s) with images of various attributes throughout the City, referencing growth in economic development. Accompanying narrative related to population, location, and workforce. B. Slides with key City services and amenities that add to quality of life - police, parks, senior services, schools, etc. C. Slide(s) showing SF homes, office buildings and retail buildings with message that these diverse components of the city's economy have contributed the needed tax revenues (property and sales) to help provide us with this high qualityoflife. II. Now, with declining tax revenues, the City faces tough fiscal challenges to maintain the quality of life and current service levels. A. Slide with graph, showing tax revenues and expenditures over a period of years. B. Slide showing impact of tax initiatives on revenues. The ability to continue City services is hampered as revenues and options are limited. III. So what are the long-term options to take on this fiscal challenge of maintaining and even enhancing our quality of life in the face of declining tax revenues? A. A few cities in the region have been investing for quite awhile and we can see the results oftheir investment and we can learn from their experiences. I. Tacoma has worked successfully to enhance its City Center, as well as encourage business growth throughout the city in both neighborhood business districts, as well as its industrial areas. Show level of City investment. 2. Renton has developed a denser, more multi-use downtown, while encouraging growth among its auto sales companies and re-use of its vast industrial lands. Show level of City investment and try to include dollar figures of increased tax revenues to City. IV. I 3. Kirkland began planning and investing in its downtown more than 20 years ago and now have a vital downtown with retail, office space, and a variety of housing. B. Other cities have only begun to invest in economic development and the returns are unknown, but anticipated. 1. Kent is converting former industrial property near its city center into a new urban village with commercial uses, a multiplex cinema, a community college and residential uses, all readily accessible to the Sounder commuter trains. Kent is also exploring ways to support and grow its manufacturing sector. 2. Burien city officials bought up a large section of its ailing central business district, packaged the properties with an ambitious plan, and have found an urban development firm that is willing to redevelop the site into a true town center, complete with commercial, residential and government uses, plus ample public open space. 3. Similarly, the City of University Place has bought a large commercial site near its current City Hall and is in the process of selling that site to a development firm that will redevelop the site into a multi-story, mixed-use urban village that will serve as that city's town center. Show level of planned investment and forecast of increased tax revenues. To meet this challenge from other cities as well as our own fiscal challenge, City Council established their number one priority to expand tax revenues and maintain services without raising taxes. A. Three economic development goals were adopted by Resolution: I. Help to grow and expand existing local businesses, (slide of good local small business) 2. Attract new businesses; and (slides of desired mixed use, business, office developments) 3. Intensify City Center development (slide of current city center aerial photo (with asphalt), change into slide of 3-D rendering (same framework) with tree lined grid roads with pedestrian walking and al fresco café by mixed use development. B. Ifwe achieve these goals, we can hope to see an increase in business activity, jobs for local residents, and tax revenue to continue needed city services and ensure the quality of life we all expect. C. It's important to understand, however, that these are long-term goals and will require planning and some level of City funding. Just like in the business world, we cannot expect to strengthen the economic engine without a vision and investment of time and money. City of Federal Way MEMORANDUM Date: April 5, 2004 To: Finance, Economic Development and Regional Affairs Committee David - se , l~anager ;-- Mary McDou I, Human Resources ManageØ~ Via: From: Subject: Possible Ombudsman Job Functions Summary Attached is a list of possible functions for an ombudsman position prepared by staff as requested by Council at the City Council retreat held in January 2004. Background At the City Council Retreat in January 2004, several Council Members were interested in creating an Ombudsman position, which would receive and respond to complaints and more specifically work to address issues related to retention of businesses in Federal Way. Based on the discussion at the retreat and information gathered from the cities and/or chambers of Bellevue, Kirkland, Lakewood, Seattle and Shoreline, staff prepared a list of possible ombudsman job functions (attached). Titles for positions including some or all of the functions listed include Business Advocate, Citizen Ombudsman, Community Relations Manager, Economic Development Advocate and Economic Development Coordinator. The list of possible job functions was provided to Council for their review and feedback. The two Council Members who responded both indicated that they were primarily interested in the functions related to business retention and outreach, and one suggested the position could possibly manage a business incubator program, if implemented. Options 1. Position is not given further consideration at this time due to budget forecast for 2005-2006 biennium. 2. Council further refines the position to focus on the ombudsman/community outreach functions as a new program proposal for review/prioritization and potential incorporation in the 2005-2006 biennial budget. 3. Council further refines the position and focuses on the business outreach! economic development assistance functions as a new program proposal for review/prioritization and potential incorporation into the 2005-2006 biennial budget. Pros/Cons 1. Eliminating proposed position from further consideration at this time would also eliminate staff time spent to research and develop new program proposal and would have no impact on upcoming budget. Alternatively, the proposal that came out of the Council Retreat may not be given full deliberation if eliminated prior to the budget review/prioritization process by Council. 2. Consideration/future implementation of an ombudsman position could provide for improved community relations and outreach. However, the City Manager's Office and each department currently have processes in place to address community concerns related to City operations, and the upcoming budget may not accommodate such a new program within the current resources. 3. Council has established economic development as a major focus for the next few years. Further development/consideration of such a position could allow for additional staff time devoted to this goal in the future. On the negative side, the upcoming budget may not accommodate such a new program within the current resources. Committee Action Recommended Select one of the options provided above and provide any further direction to staff. APPROV AL BY COMMITTEE: Eric Faison, Chair Jeanne Burbidge, Member Jim Ferrell, Member Possible Ombudsman Job Functions - Receive and process complaints, inquiries, and requests for service from citizens, businesses, and other agencies. Provide advice, information, referrals and referral oversight regarding City services, policies and procedures. In response to inquiries, represent the City's position on current issues to individuals and groups. - Investigate allegations of substandard City service or recurring problems; research and analyze City laws, policies and rules; coordinate and negotiate with management of City departments as necessary to resolve problems. - Act as an advocate for citizens, businesses, or agencies having difficulty securing equitable City service delivery. - Provide recommendations to the City Manager for changes/additions to City ordinances, policies and procedures in order to address emerging service problems, and to avoid recurrence of complaints. - Promote City-wide service excellence by assisting in improving service delivery, responding to service and information requests, resolving complaints and providing leadership On interdepartmental teams to address emerging issues. - Facilitate meetings with citizens, businesses, community organizations and City staff in order to solve broader problems and resolve conflicts. - Prepare and distribute resource materials to inform citizens regarding government processes and issues. - Assist with coordination and facilitation of public and private efforts to retain and expand existing businesses. Assist with coordination of City resources in completing joint projects with economic development associations. - Assist in the preparation of grant applications and plans; research availability of private and grant funding. - Develop position papers and analyses as directed; make presentations to public and private sector groups as needed. - Act as the "go to" person or caseworker for business retention and for businesses considering an expansion, move into, move within, or exiting from the City. - Build and strengthen relationships with existing businesses via personal visits. - Collect information from existing and prospective business owners and operators to help shape policy development on business climate issues. - Review land use issues; analyze proportionality ofregulations against project expenditures to assess reasonableness.