LRAC MIN 03-25-2014COMMITTEE MEMBERS PRESENT: Graham Evans, Chair; Lori DeVore; Keven
Dunn; Donald Bartlett; Frank Spicer.
COMMISSION MEMBERS ABSENT: Mark Hutson
STAFF PRESENT: Jay Bennett, Community Services Manager; Patrick Doherty,
Community & Economic Development Director; Dee Dee Catalano, CDBG /Human
Services Coordinator.
GUESTS: Rich Shockley, Highline Community College; Asbury Lockett, Highline
Community College; Teresa Lemmons Delicino, Washington State Microenterprise
Association.
• CALL TO ORDER
The meeting was called to order at 11:05 pm.
ROLL CALL
Dee Dee Catalano took the roll.
Chair Graham Evans reviewed the Committee's work over the last year and noted that
part of today's discussion will be on how to make the Committee's processes better.
Jay Bennett said that that City and the Committee have established several valuable
relationships over the last year, including with Highline Community College (HCC) and
the Washington State Microenterprise Association (WSMA). He reviewed a handout
about the CDBG program, noting that one option the City could pursue for economic
development is to employ a Community Based Development Organization (CDBO) in
Federal Way. However, there would have to be an interest group within the city willing
to create such a group.
Jay made the following additional points:
• One way to potentially create more interest in the Commercial Exterior
• Improvement program would be to do away with the required funding match.
• Marketing to startups is difficult because they are hard to reach and it is difficult •
to communicate what they need to know.
• A new CDBG program in 2014 is a job retention program.
The Committee discussed ways to more effectively communicate CDBG opportunities
to businesses. Rich Shockley and Asbury Lockett said that they let their clients know
about Federal Way funding opportunities and have conversations about what is required
and if it might be an option for them.
The Big Picture
Patrick Doherty, Community & Economic Development Director, reported to the
Committee on the City's economic development initiatives. He said vacant office space
is down from a few years ago and noted that the City has a reputation with developers
as being an easy jurisdiction to work with. He reviewed city center redevelopment
efforts.
Patrick reviewed the status of the Performing Arts and Conference Center (PACC)
project. He said the blue ribbon panel is studying the pro forma and will report back to
the City Council on May 8. One goal of the PACC is to kick start redevelopment in the
city center, especially in the undeveloped or underdeveloped sites. He said that by July
of this year there will be an interim park downtown at 316th and 20th SE to be known as
Town Square. •
Patrick updated the Committee on the City's CDBG Section 108 loan fund application.
He said the City can pledge up to five times its annual entitlement amount to be used for
qualifying projects such as the PACC. The loan can be paid back over 20 years from
CDBG funds. Any Section 108 projects must be approved by the City Council.
Jay Bennett asked Patrick's opinion about a possible CBDO in Federal Way. Patrick
replied that CBDOs can be a useful tool, but would take a large percent of our allocation
to be effective. An overview of CDBG spending would be useful if that option is
considered.
Partners
Rich Shockley, Highline Community College, reported on the StartZone and SBDC
CDBG programs. He said they have a staff member that does outreach to immigrant
groups and another staff person who translates classes into Spanish He noted that only
clients who cannot get financing at banks will come to the CDBG programs so it's
important not to expect "ideal" clients. He gave as an example a client from Africa who
wants to start a specialty food store in Federal Way. She has experience but not a
strong financial background.
Teresa Delicino, Washington State Microenterprise Association (WSMA), discussed •
how to better encourage the flow of deals to the CDBG programs. She said it's
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•important to support the "business ecosystem" to develop an entrepreneurial culture
and to ask business owners what they need.
Teresa also discussed ways to market the program to non - traditional locations and
stressed the importance of screening applicants for ways to say "yes" rather than "no."
She said loan guarantees are an example of good CDBG projects because the bank
makes the loan and the City just guarantees it. It is a good option for banks' clients who
don't qualify for traditional loans.
LRAC Discussion
Members of the Committee discussed ways to increase the use of the CDBG loan
programs. Jay Bennett said has discussed with IT staff ways to export the City's
business license information into a more useful format, including whether they are new
businesses, number of employees, etc.
Committee members discussed how to use what is unique about Federal Way to attract
businesses to the city and not duplicate what other cities are doing.
Frank Spicer noted the importance of streamlining the CDBG loan process so it doesn't
take as long. He believed that a loan guarantee program would be the highest and best
use of CDBG loan funds and that this option should be communicated to local banks.
•He suggested using case studies or profiles of businesses that have been helped in this
manner.
Jay Bennett asked the Committee members to think about how the City should spend
CDBG economic development funds in the future and to communicate any ideas to
Patrick Doherty, who will be working on the two -year City budget.
ADJOURNMENT
The meeting adjourned at 1:25 pm.
NEXT MEETING
Regular Meeting
April, 2014
5:30 — 7:30 pm
Hylebos Room
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