3b - Economic Development StrategyS()M]3
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CITY OF
Federal Way
6/29/2021
Purpose
Formulate actions that create a high performing
economy. Simply to create jobs while continuing to
both diversify and sustain Federal Way
"Some Assembly Required"
It calls attention to the goals and objectives involved
with the planning, designing, financing and
construction associated with the programs, projects
and services which are all needed to accomplish the
reason or issues for the strategy.
6/29/2021
CITY OF
Federal Way
STEP 1
• PREREQUISITES
STEP 2
• FOUNDATIONS
STEP 3
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• STRATEGY
CITY OF
^�. Federal Way
6/29/2021
ECONOMIC DEVELOPMENT
Any action(s) that creates change in what and
how goods and services are produced through
shifts in resource allocation such as Production,
Workforce Skills, Technology/Information and
Finance/Capital that increases economic
growth
6/29/2021
CITY OF
Federal Way
DEFINING
ECONOMIC DEVELOPMENT
• WEALTH
• INCOME
• JOBS
• INVESTMENTS
6/29/2021
CITY OF
� Federal Way
ECONOMIC GROWTH
VS.
ECONOMIC DEVELOPMENT
6/29/2021
CITY OF
�. Federal Way
ECONOMIC GROWTH
■ INCREASE IN POPULATION
■ INFUSION OF CAPITAL
■ HARVESTING OF NATURAL RESOURCES
■ CHANGES IN TECHNOLOGY
6/29/2021
CITY OF
�. Federal Way
DEFINING
ECONOMIC DEVELOPMENT
• WEALTH
• INCOME
• JOBS
• INVESTMENTS
6/29/2021
CITY OF
� Federal Way
SUPPLY
COVERS ANY INVESTMENTS OR ACTIONS
THAT IMPROVES THE ENVIRONMENT FOR
BUSINESS OR ECONOMIC ACTIVITY
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DIRECT ASSISTANCE TO BUSINESS AND
INDUSTRY TO REDUCE COSTS OR RISKS
6/29/2021
ENCOURAGING, INVESTMENTAND
PRODUCTIVITY �
CITY OF
�. Federal Way
What Do Economic Developers Do?
• Provide Advice to Elected Officials
• Collection of Market Intelligence
• Recruit Retain and help Expanding
Businesses
• Provide Advice on Redevelopment Projects
• Work to Ensure Regulatory Processes are
Clear to Inquiring businesses or Investors
• Help Acquire Capital for Community
t �
CITY OF
6/29/2021 A- Federal Way
Evolution of Strategies
1. Industrial 1940's
2. Retention of Business 1950's
3. Small Business & Entrepreneurship, 1960's
4. Sustainable Economic Development 1980's-
1990's
5. Comparative Advantage 1990'
6. Currently, Place Making
6/29/2021
CITY OF
�. Federal Way
Economic Development
Before Recession
1. Federal Funding for Econ. Development
2. Plentiful Tax Credits
3. Local Revolving Loan Funds were Robust
4. Heavy Use of Special Districts
5. Tax Exempt Bonds Used Ext
6/29/2021
ensively
4AND
CITY OF
f�. Federal Way
Economic Development
After Recession
1. Reduction in Federal Funding
2. Tax Credit Projects Exist, but layered and More
Complex
3. Tax Exempt Bonds Available, Only with Good
Credit
4. Local Revolving Loan Funds Stressed
5. Government Grants Reduced or Eliminated
6. Special Districts have Faded
7. Tax Exempt Bonds Used Extensively
8. Elimination of State Programs --Me
CITY OF
6/29/2021 A- Federal Way
WASHINGTON ECONOMY
Forecast
❖ State to Continue GDP and Job Growth
❖ Growth in Washington is forecast to continue to
pick up speed in 2015
❖ According to the San Francisco Federal Reserve
Bank, the business outlook remains positive in
Washington
❖ No increase in higher federal payroll taxes
❖ No Debt Ceiling debate
❖ No Federal Government Shutdown on the horizon
(sequestration)
CITY OF
Federal Way
6/29/2021
Emerging Themes
• Young Population
• Quality of Life
• Diverse & Skilled
• Location
Labor Force
• Educational Levels
• Income levels
• Jobs -Housing Balance
• Departure of Weyerhaeuser
CITY OF
Federal Way
6/29/2021
0
0
0
EDUCATIONAL LEVELS
Bachelor's Degrees +
King County
State
Seattle
46mO%
31m0%
5000+%
CITY OF
Federal Way
6/29/2021
MOVEMENT
LABOR FORCE
FEDERAL
• There are an estimated 30,231 jobs in Federal Way
• There are 37,364 Federal Way Residents who Work
• 32,373 of these Residents Work Outside of Federa€ Way
• 25,240 of the people Employed in Federal Way, Live Elsewhere
MEAN IN
• Only 4,991 Federal Way Residents Live
and Work in Federal Way
i Nearly 60,000 People Enter and Leave at
Rush Hour, Monday -Friday
6/29/2021
INCOME
Poverty Levels
Auburn 17%
Burien 16%
Kent 18%
Renton 13%
SeaTac 22%
Tukwila 18%
CITY OF
Federal Way
6/29/2021
Vision, Mission & Goals
Vision:
"To Become the Premier Community in the Puget Sound"
Mission:
Produce Solutions to Attract and Retain Businesses, Jobs,
Investments along with Improving the Tax Base and
Enhancing the Quality of Life in Federal Way
CITY OF
.� Federal Way
6/29/2021
Vision, Mission & Goals
Goals:
1. Promote & Create a Sustainable, Diversified and Globally
Focused Economy
2. Help Attract, Expand & Retain Businesses, Jobs &
Investments that provide employment Opportunities for
Federal Way Residents
3. Alignment of Reuse of Weyerhaeuser Corporate Campus
to Next Generation of Jobs
CITY OF
Federal Way
6/29/2021
Vision, Mission & Goals
Goals:
4. Build a Brand to Promote & Enhance Federal Way
5. Ensure Education Opportunities Align with Future Job Growth
6. Formulate Tools and Systems to Encourage Entrepreneurship
CITY OF
Federal Way
6/29/2021
Objectives
Over 30 objectives (Not Yet Prioritized)
aligned to the Goals to be Initiated
CITY OF
Federal Way
6/29/2021
• Special Projects
o Weyerhaeuser
o Downtown Development
o University Initiative
o Branding
• Programs & Services
o Business Recruitment, Retention and Expansion
o Market Intelligence
o Access To & Availability of Capital
o Communication & Outreach
6/29/2021
CITY OF
t Federal Way
Special Projects
Weyerhaeuser Reuse
• Work with Weyerhaeuser and their Consultant
Team
• Formulation of Multi -Discipline Response Team
• Conditions and Considerations Analysis (Done)
• Working to Find an End User(s)
o Outcome- Creation of Permanent Jobs to
Exceed Previous Impacts and to Enhance
Tax Base
CITY OF
Federal Way
6/29/2021
c eci I Pry pf t *car
Downtown/ Town Center
• PACC - TC-1
• Town Sq. Park
• RFQ- TC-3
• TC-4
- TC-2
CITY OF
Federal Way
6/29/2021
ZONE
INNOVATION, DESIGN, EDUCATION,
ENTREPRENEURSHIP & ARTS ZONE
• LIFT
• '/2 School Impact Fees
• Reduction on Traffic Impact Fees
• Central City Project Area SEPA
• No Parking Fees
• No Local B & O Tax
• No Head Count Fees
• No Business License
• Use of RLF
-4k CITY OF
Federal Way
6/29/2021
Performing Arts & Conference Center
"Not the New Venue but The Venue in the Puget Sound"
• Participation on City Team
o N MTC's
o Grant Committee
• Art &Tourism Targeted Cluster
• Leverage Asset to Enhance Economy
4§� CITY OF
Federal Way
6/29/2021
0
0
SP( ects
University Initiative
"Building Intellectual Capital"
Recruitment of a Branch Campus of a Major
Research University
Help Residents Acquire Bachelor Degrees to
Improve Employment Opportunities
CITY OF
Federal Way
6/29/2021
Spey_ rojects
Branding
"Positioning and Image for Federal Way"
• Work with Council on Direction
o Formulate City Implementation Team
• Formulate Work Plan & Timeline
• Communication & Outreach
o Website Content
o Federal Way Business Minute
o Formulation of Quality of Life Index
�FederaI Way
6/29/2021
Econ. Dev -rogra, & Services
Business Recruitment
Targeted Industries
• Construction
• Arts & Tourism
• Healthcare
• Professional & Business Services
• Information & Communications Tech
• Entrepreneurship
• Global Trade &InvestmentCIT�
Federal Way
6/29/2021
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Federal Way
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• Trns/Utlts -) Info a PrfSvcs
4 Ed/HIthcr 0 ArtsTourism 4 Other
6/29/2021
Econ. vev. programs & Services
Business Recruitment
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Federal Way
CITY OF
Federal Way
6/29/2021
Ec^n. Dev. Prograr Services
Business Expansion & Retention
Focus on:
• Infrastructure
• Low Crime Rates
• Tax Rates
• Labor Force Issues
• Pro -Active Local Government
6/29/2021
CITY OF
. . Federal Way
Econ. Dev. Orograr � Services
Market Intelligence
• Business Retention Survey
• Focus on:
o Real Estate
o Business
o Development
o Tax Rates
o Labor Force
CITY OF
Federal Way
6/29/2021
Econ. Dev. Programs & Services
Access to & Availability of Capital
• Presentation of Biannual Lenders forum
• Examine EQ-2 Program
• Examine Opportunities with CDFI's
• Examine Opportunities with Angel
Networks
• Examine Opportunities with Crowd
Funding
• Examine creation of Community
Development Corporation
CITY OF
Federal way
6/29/2021
Econ. Dev, Prograr Services
Communication & Outreach
• Formulation of Business District Associations
o Downtown
o Twin Lakes
o North Pac Highway
o South Pac Highway
• PROJECT LANDLORD
• Economic Summit
• Update of Econ. Dev Element of Website
• Produce Federal Way Business Minute
CITY OF
Federal Way
6/29/2021
❖Diverse, Sustainable & Globally Focused
❖ An Economy Focused on the Future
❖Performance Metrix
❖ Budget Conscientious
❖ Involves Local, State, Regional and National
Stakeholders
CITY OF
�. Federal Way
6/29/2021