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
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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
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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
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1-3
Federal Way Economic Development
. Strengths, Weaknesses, Opportunities
. Location & Site Selection Criteria
. Economic Development Marketing
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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
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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
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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
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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
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1-<1
. Personnel
. Availability
. Quality
. Cost
. Work Ethic
. Labor Management Relations
. Presence Of Critical Skills
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1-9
. Infrastructure
. Sites Or Buildings
. Transportation
. Energy
. Utilities
. Telecommunications
. Supply Sources
. Vendors
. Maintenance And Repair Facilities
. Banks
. Business Services
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1-10
. Governmental Issues
. Taxes
. Incentives
. Support Of Business And Industrial
Growth
. Legislative/Regulatory Climate
. Fiscal Responsibility
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1-11
. Community Afuactiveness
. Housing
. Schools
. Culture/Entertainment
. Recreation
. Shopping
. Climate
. Image
. Professional Support Services
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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
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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
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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?
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Marketing Options
. Direct Mail Letters/Brochures
. Trade Show/Professional Associations
. Targeted Advertising
. Home Page WWW
. GIS Catalogue Of Sites And Corridors
. Interactive Video Presentation
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