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Council MIN 01-14-1997 Special FEDERAL WAY CITY COUNCIL SPECIAL MEETING Council Chambers - City Hall January 14, 1997 ..... MINUTES I. CALL MEETING TO ORDER Mayor Priest opened the special meeting of the Federal Way City Council at 7:05 p.m., in Council Chambers, City Hall, Federal Way, Washington. City Council present: Mayor Skip Priest, Deputy Mayor Hope Elder; Councilmembers Mary Gates, Michael Park and Phil Watkins. Councilmembers Gintz' and Dovey's absences were excused. City staff present: City Manager Ken Nyberg, City Attorney Londi Lindell and Deputy City Manager Philip Keightley and Management Services Director Iwen Wang. Invited guests included the Economic Vitality Committee of the Chamber of Commerce. II. PRESENTATION - LOCKWOOD GREENE Mark Keller, Business Development Manager with Lockwood Greene (a Management Consulting Group) made a presentation with discussions centered around background-decision making used by corporations when considering relocation and restructuring. Items such as growth strategies for communities, site location analysis for companies and other economic development services were discussed. A focus on the strengths, weaknesses and opportunities was held. Personnel, Inftastructure, governmental issues, community attractiveness, quantitative criteria and other issues were raised and discussed at length. (see attached Exhibit A) III. ADJOURNMENT Having no other business to come before the Council, Mayor Priest adjourned the meeting at 905 p.m. ~ (£¿(~ . ý 'j L ---------- N. Christine een, CMC City Clerk ORIGINAL -. ..ml.D1D..7. EXHIBIT ,~.. Economic Development Discussion Issues Presented by Mark Keller January 14,1997 Lockwood Greene 16300 Christensen Ave Seattle, W A (206) 246 4551 1-1 Introduction to the Firm . International AlE and Consulting Firm . In Business Since 1832 . 1800 Employees . Offices Across U.s. and in Europe, Asia, and South America . Work with Large and Small Companies in Expansion Planning and Design ..ml.O1O997. 1-2 Management Consulting Group . Site Location Analysis for Companies . Growth Strategies for Communities, Regions and States . Strengths¡W"eaknesses Assessments . Target Industry Studies . Marketing Plans . Other Economic Development Services . Systems Consulting . Real Estate/Feasibility Studies ..ml.O1O997. 1-3 Federal Way Economic Development . Strengths, Weaknesses, Opportunities . Location & Site Selection Criteria . Economic Development Marketing ,aml.OlO..7. 1-4 . Strengths . Central Puget Sound . Community based arts and sports organizations . High housing values/ quality . Strong retail concentration/ diversity . Puget Sound growth outpaces state/nation . No state income tax . Emerging Corporate Headquarters . Good north/ south access . Large inventory of vacanti redevelopab Ie property . Land around Weyerhauser is undeveloped . Available land between PHS and 1-5 . FW 20 minutes from SeaTac . Well coordinated permit review process ..ml.OlO997. 1-5 . Weaknesses . FW homes not affordable by retail employees . Seattle area housing costly . High business taxes . Too much retail . Insufficient hotelj motel space . CBD not visible from 1-5 . Low development quality / strip commercial . Older existing developments . Local jobs are low pay retail . New water supply needed . Limited fiber optic capabilities . Local Transportation Improvement Plan underfunded . More 1-5 access is needed "ml.OtOOO7. 1-6 . Opportunities . Ties to Korean Community . Focus on Weyerhaeuser /King County Aquatic Center . Create downtown high density core . FW poised to take advantage of regional growth . Promote pro business taxing posture . Hotel/ motel locations . Corporate headquarters locations . Campus environment is aesthetically appealing . FW has opportunity to re-establish regional retail image seml.O1O997. 1-7 "- Corporate Geographic Location Search STAGE 1- Domestic vs. Overseas Location ~ STAGE II - Region of the Country (e.g. Southeast) ~ STAGE III- Candidate States (4-5) ~ STAGE N - Region of the StabiCounties (10 Counties or Less) ~ STAGE V - Candidate Communities (2 - 5+) ~ STAGE VI- Specific Site Mcnp,oc.doc 1-2 . Location and Site Selection Criteria . Personnel . Infrastructure . Governmental issues . Community issues .eml.OIO997. 1-<1 . Personnel . Availability . Quality . Cost . Work Ethic . Labor Management Relations . Presence Of Critical Skills ,eml,OlO"7, 1-9 . Infrastructure . Sites Or Buildings . Transportation . Energy . Utilities . Telecommunications . Supply Sources . Vendors . Maintenance And Repair Facilities . Banks . Business Services ..ml..,.»7. 1-10 . Governmental Issues . Taxes . Incentives . Support Of Business And Industrial Growth . Legislative/Regulatory Climate . Fiscal Responsibility ..ml.OlO997. 1-11 . Community Afuactiveness . Housing . Schools . Culture/Entertainment . Recreation . Shopping . Climate . Image . Professional Support Services ",ml.OlO997. 1-12 Other FactOl8.doc Quantitative Criteria Quantitative criteria are decision tools primarily used to identify favorable business cost areas. Both the nonrecurring costs & ongoing operating costs wlúch affect project performance are considered. Examples of Cost Factors Considered: Labor Cost Wages, Benefits, Social Costs, etc. Taxes Sa1es/VAT, Real Fstate, Corporate, Gross Receipts, etc. Utility Rates/Capacity Electric, Gas, Water, Sewer, Telecom, etc. Logistics Costs Inbound/Outbound Freight (Truck, Rail, Ship, etc.) Occupancy Construction, Leases, Sitework, Environmental Impact Mitigation. Taxes, Incentives Tax Abatements, Work force training, Infrastructure Grants, Land, Building, Financing, Pro Bono Services, etc. Non-recurring Costs Human Factors (relocation, recruiting, etc.) Land, Facility, Infrastructure, Rigging, etc. 1-1 Other Factors.doc Qualitative Criteria Qualitative criteria distinguish between favorable and unfavorable operating enVÙ'onments. These also impact the long-tenn return on investment. Examples of Operational Issues: Markets Supply Chain Labor Profile IndusbiaI Support Accessibility Staff Retention Regulatory Environment Image Strategic Support Proximity to Customers, Strategic Partners & Potential Future Markets Proximity to Suppliers, Teclmology Total Work Force, Labor Availability, Labor- management Relations, Unions, Competing Employers, Demographics, Education, etc. Machine Shops, Electricians, Carpenters, Software/Hardware, etc. Air Service, ffighways, Rail, Port, Truck Terminals, etc. Cost of living, Health Care, Education, Safety, Recreation, etc. Permitting Process, Regu1ations (Air & Water), Waste Management Faålities, Wetlands, Floodplain, Nearby Land Uses Various Factors that Support the Company's Marketing Agenda. Local Politics, Public Attitudes and Business ReJationships Affecting Key Project Success Factors 1-2 Location Strategy Decision Process Example Of A Comprehensive Approach PHASE 1 """""""" . . . . ... May involve co- ", : locating : facilities, : different project , schedules, or \business growth ..-: ..::[:::::::::~~:: " Initially, this \ may reflect a : company's : , past : "'!':'P.:~':':'~~~...."" ...: Project Specifications Facil~ies Environment Labor Force Decision Criteria Select the Scenario(s) Define the S~e Criteria Screen & Select Candidate Areas/Sites Financial Analysis One-Time Costs Operating Costs PHASE 2 """"""""""'.-. . . :1'. :'Humanfactorsare .... : important, and may be : : considered at several : points in the process (e.g. : cost of living, personal : \~~~,.~~~~~~:~~~I~!../ PHASE 3 Negotiating Strategy S~es Priorities Schedule . Implementation Planning Economic Development Marketing . Extemal Marketing . Recruitment . Target Identification . Marketing to Firms in Target SIC Groups . Intemal Marketing . Retain Existing . Expand Existing . Start New Businesses ..ml.OlO997. 1-13 Targeting" Clients" - Which Ones? . High Growth . Developers Who Will Be Attracted To Federal Way . Developments Which Will Contribute To The Diversification of Federal Way's Economy . High Wages . Good Job Generation . Not All Machines, No Workers . Buy from Local or Regional Suppliers ..ml.O1O997. 1-14 Marketing Plan Without a good marketing and implementation plan, the initial research and effort in community evaluation will yield few results. . What does FW want? . Which specific target market segments will be target? . How will they be approached? . What specific incentives are available? . Return commibnents needed by FW? ,eml.OlO997. 1-15 Marketing Options . Direct Mail Letters/Brochures . Trade Show/Professional Associations . Targeted Advertising . Home Page WWW . GIS Catalogue Of Sites And Corridors . Interactive Video Presentation Hml.OlO997. 1-16