HomeMy WebLinkAbout04272017 Council ED Committee PacketCouncil Economic Development
Committee
Members:
Councilmember Coffey
Councilmember A. Gutierrez
Councilmember Cousens
CED Conference Room
City Hall
April 27, 2017
1:30 p.m.
Staff:
Cliff Moore, City Manager
Sean Hawkins, Economic Development
Manager
Rob Peterson, Airport Manager
Joan Davenport, Director of Community
Development
Colleda Monick, Economic Development
Assistant
Others:
Agenda
Review Minutes from March 23, 2017 Meeting:
Action Items:
1. JEM Development Parking Agreement — Sean Hawkins
2. Yakima Millsite — Visual Engineering Resource Group (VERG) Project — Sean Hawkins,
Joan Davenport
3. Economic Development Plan - Incubator RFQ Contract
Update Items:
1. Economic Development Plan
2. Economic Development Plan
3. Economic Development Plan
4. Economic Development Plan
5. DYBID Services to DAY
Audience Comments:
— Air Service
— Sites for Business
— Incentives
— Image Campaign
Council Economic Development
Committee
Members:
Councilmember Coffey
Councilmember Cousens
Councilmember Gutierrez
Planning Conference Room
City Hall
March 23rd, 2017
1:30 p.m.
Staff:
Cliff Moore, City Manager
Sean Hawkins, Economic Development
Manager
Jeff Cutter, City Attorney
Sara Watkins, Sr. Assistant City Attorney
Rob Peterson, Airport Manager
Joseph Calhoun, Sr. Planner
Randy Bonds Jr, Web Applications
Developer/Administrator
Colleda Monick, Economic
Development Assistant
Executive Minutes
Others:
Luz Gutierrez
Teresa Sanchez
Verlynn Best
Chelsea Mack
• Lease Agreement — Former Tiger Mart —1808 North Front Street
Cutter provided an update regarding the lease agreement with Dean Owens and noted
that the agreement is contingent on obtaining a NFA (no further action) letter from the
Department of Ecology.
Councilmember Cousens made a recommendation for City Legal to negotiate a potential lease
with Dean Owens and to bring the lease to the City Council for final approval if negotiated.
Seconded by A. Gutierrez. Motion was approved 3-0.
• Comprehensive Plan Presentation — Economic Development Elements
Calhoun made a brief presentation to councilmembers regarding the economic
development highlights of the comprehensive plan update. The plan is currently in a 60
day comment period; public entities have been notified; the plan is available on the
website; and a public hearing for accepting the plan is tentatively scheduled for June
6th, 2017.
• Economic Development Plan and Millsite Web pages on City Website
Bonds provided a brief overview of the improved Economic Development page on the
City website which now houses the Economic Development Strategic Plan in its
entirety. The page includes links each of the plans initiatives, program documents, and
partners involved. Bonds also previewed the Cascade Millsite website in progress
which includes an FAQ section, timeline, documents pertaining to the project, historical
information on the site, as well as an interactive map of the various phases of the
project. Councilmembers requested early access to the site so that they might provide
feedback before it goes public.
• Code Updates — YMC 8.30 (Street banners) and YMC 11.08 (Sign Code)
Watkins walked through proposed changes to the current ordinances which were
initiated due to a recent federal ruling that affects our policies.
There was a recommendation by the committee to bring the proposed changes to full council for
further review.
• JEM Development Parking Agreement
Hawkins shared the city's existing parking agreement with JEM Development for use
of two parking lots. Currently the city is paying $7,000 a year along with maintenance
to lease both lots. No action is necessary to keep the agreement in place, but an
alternative revenue source will need to be sourced if council would like to keep the
agreement in place for future years.
Councilmembers were in agreement that they would like to explore parking lot usage
during the next month as well as a breakdown of each parking lot's individual cost.
Update Items:
• Economic Development Plan — Next Steps
Hawkins shared with the councilmembers a list of upcoming meetings discussing the
various initiatives of the plan. To date, 5 of the 7 councilmembers have expressed
interest in participating in various aspects of the plan and at any time, any
councilmembers may get engaged in any of the phases of the project.
• Airport Update -
Peterson provided an update on airport activities; including the recent attendance at
the annual NW AOPA (Aircraft Owners and Pilots Association), brochures and flyers
that were shared with attendees of the conference; 2016 load factor numbers; possible
interest converting the 1600 sq/ft old terminal building into a coffee and pastry shop;
and a brief update on the hiring progress of an Assistant Airport Manager.
• Audience Participation —
Councilmember Coffey requested that `Review Minutes' be included to the top of all
future Council Economic Development Committee meeting agendas.
Councilmember Coffey requested Hawkins to extend an invitation to Jonathan Smith of
YCDA to attend the next Council Economic Development Committee meeting and
share with the group any insight he might have on why 'Autozone' chose Pasco over
Yakima (in reference to a recent article in the Yakima Herald).
Sanchez noted a spelling error in the minutes of one of the attendees to the last
meeting the correct spelling should be noted as Haddia Nazer.
RESOLUTION NO. R-2015-062
A RESOLUTION authorizing the City Manager to execute an agreement
between JEM Development Company and the City of Yakima
for parking lot utilization in the downtown core.
WHEREAS, the City of Yakima has an opportunity to provide the use of
additional parking spaces in the downtown area where residents and
visitors can park while enjoying the restaurants, wineries,
attractions, and entertainment offered in downtown Yakima; and
WHEREAS, JEM Development owns several vacant parking lots in the
downtown core and is willing to make two of them available to the
City of Yakima for the convenience of downtown visitors; and
WHEREAS, the City desires to enter into a two-year agreement with JEM
Development to use a total of 260 of JEM's parking spaces, 180 of
which are located in the area of North 4th Street and Staff Sgt.
Pendleton Way and 80 of which are located at the corner of Naches
Avenue & Chestnut Ave.; and
WHEREAS, JEM Development will make the 260 parking spaces available for
public parking at no cost to the City of Yakima in accordance with
the terms of the Parking Agreement attached hereto and
incorporated herein by this reference; and
WHEREAS, the City will be responsible for maintaining the Tots in their current
condition, performing basic maintenance duties, and paying the
annual property tax of $7,422 for the two lots which equates to
$28.00 per space annually; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is hereby authorized and directed to execute the attached and
incorporated two-year Parking Agreement with JEM Development for use of 260
parking spaces in the downtown core area.
ADOPTED BY THE CITY COUNCIL_this 5th day of May, 2015.
•
Micah Cawl'y, Mayor
ATTEST:
onya Clear Te City Cleriijla rq,
STATS: 143 parking spots
AU 4 ilk141 OA
Q
W
H
DQ
Z
O
2
00
m
0
0
d
0
N
cr
0
m
m
m
0
l0
m
0
N
ct
0
M
TAT : :1 s • of
THURSDAY
Z
0
2
O
00
N.
A.
Ill
e-1
0
N
0
N
3
VERG work, schedule and cost estimates
Boise Cascade Mill Project & Transportation Corridor
City and County of Yakima with WSDOT
Work Estimate —
• Construct 3D Computer Model of the transportation corridor — as shown in attached print from
HW Lochner. Note, the proposed 1-82 interchange design that will be modelled will be the
design referenced in the WSDOT IJR. All other design aspects will be represented from the HW
Lochner/HLA engineering design files. The over-all 3D model will be immersive as possible by
including city/county buildings, trees, etc. that are close to the corridor alignment. Additionally,
the Greenway pedestrian bridge will be 3D modeled too in conjunction with the over-all corridor
model.
• Produce Project Introduction Video. This video will intro the over-all transportation corridor
and the resultant benefits following construction. It will also topically speak about other,
related, chaptered videos and end with "stay tuned for more productions" to come. Note, an
official project name is needed.
• Produce Chaptered Videos. There are related stories to the building of the transportation
corridor and those will be told through separate videos that will act as "chapters" to the
Introduction video. Note, some of these productions can come from previously finished videos
and / or from other partner productions. Here are recommended chaptered videos:
o Cultural history of the Boise Cascade Mill site — why it existed and what it brought to the
community.
o Detailed review of the new east -west transportation corridor connecting Terrace
Heights to the City, reducing stress on Yakima Ave., a RxR crossing and ultimately
making connections to Fruit Vale Ave. Here is where the 3D modeling of the design will
be extensively used.
o Environmental issues of the municipal landfill and what the city is doing about it so
development of the Mill site can move forward.
o Development/improvement of "H" St. and why it needs to occur.
o How the Greenway will be integrated into the new east -west transportation corridor.
o Developing the Boise Cascade Mill Site for commercial use and how it will integrate with
the over-all city downtown revitalization.
• Aerial Photography / Videography. As part of the above-mentioned productions, there will
most likely be a need to obtain supportive aerial imagery that will be worked into the 3D design
visualizations and video productions.
VERG work, schedule and cost estimates
Boise Cascade Mill Project & Transportation Corridor
City and County of Yakima with WSDOT
Schedule Estimate —
• Although the detail of the HLA/HW Lochner and WSDOT (182 Interchange) engineering design is
unknown at this time, the construction of the 3D computer model of the transportation corridor
and the production of the Introduction video will be done concurrently. Conservatively, at least
7 weeks will be needed.
• The chaptered videos cover many different subjects with different details. Some of these
productions will include interview -testimonies and other multi -faceted, detailed aspects.
Conservatively, at least 6 weeks (+) per video will be needed.
• The aerial photography / videography will be accomplished in less than one day.
S
FIELD GROUP thefieldgroup.net
CLIENT: FLY YKM
DATE: 4.7.17
SUBJECT: MARCH 2017 ADVERTISING CREATIVE HIGHLIGHTS
RADIO
Starting in March, we began to run three times a week on Townsquare, Radio Yakima, and
Bustos radio. Attached is a look at one of the on -air reads from Townsquare in March.
Destination information is changed three times a week for each spot. Below is a sample of
the copy points sent in March:
If 1 were go online right now and check out fares, 1 can find some great deals right out of
Yakima.
See what you might find for your next trip.
1. Experience the wonder of the Grand Canyon this spring with all the wildflowers
blooming! One-way flights to Phoenix, AZ as low as $111
2. Headed back east? Take the trip you've been dreaming of and find one-way flights out of
Yakima to New York, New York for as low $168!
3. Enjoy the beauty of Mexico! Visit Cabo San Lucas, Mexico in April with one-way flights
right out of Yakima as low as $211!
Fares can always change based on availability and some restrictions apply.
Check out Fly Y-K-M.com to learn more. It's cheaper than you think.
509.965.1780 // 103 N 3RD STREET, SUITE 1 // YAKIMA, WA 98901
6
FIELD GROUP thefieldgroup.net
PRINT
We ran in both El Sol and Yakima Magazine in March.
*Los precios pueden variar
dependiendo de la disponibIlidad y
pueden apllcar algunas restricciones.
mai ilia im lain
BILLBOARD
Below is the billboard that ran in March and received approximately 285,306 impressions.
FLYYKM.COM
509.965.1780 // 103 N 3RD STREET, SUITE 1 // YAKIMA, WA 98901
7
FIELD GR®UPg p
thefield rou net
DIGITAL / FACEBOOK
We are not necessarily looking to increase visits to the FLY YKM
website, but instead our goal is to increase passenger traffic
through the Yakima airport. With that said, we are optimizing for
more impressions (views) of the digital ads, rather then clicks on the
ads to the website.
February digital was strong that promoted travel in March. We did
see a drop in engagement for March and are looking at destination
as a possible reason for the low digital engagement. April is shaping
up to be a strong month though with Google display already
doubling March's numbers in just the last 7 days.
Below is a highlight of the Everyday Sales digital and social ads.
Google Display March Digital for Everyday Sales (3/1 - 3/31)
42,301 impressions
35 clicks on the ad
Google Spanish Video March for Fly YKM Brand (3/1 - 3/31)
3,716 impressions
473 views
Facebook March Digital for Everyday Sales (3/1- 3/311
45,986 impressions
1,879 clicks on the ad
Engagement
55 total comments on the ad
97 people shared the ad on Facebook
116 new people liked Fly YKM Facebook page after seeing this ad
YAKIMA TO
LAS VEGAS
Ira
:_•s
ii
4142 -
APRIL ONE. -WAY
FARES AS LOW AS
$112
'Terms apply.
See site for details.
FLYYKM.COM
509.965.1780 1/ 103 N 3RD STREET, SUITE 1 // YAKIMA, WA 98901
YAKIMA AIR TERMINAL
AIRLINES BOARDINGS REPORT
2017
2017 Departures HORIZON HORIZON
TOTAL #of LOAD
2017 HORIZON CHARTERS TOTAL TO DATE FLIGHTS FACTOR
JANUARY 6,262 6,262 6,262 105 78.5%
FEBRUARY 5,829 5,829 12,091 97 79.1%
MARCH 6,977 6,977 19,068 118 77.8%
APRIL 0 19,068 #DIV/0!
MAY 0 19,068 #DIV/0!
JUNE 0 19,068 #DIV/0!
JULY 0 19,068 #DIV/0!
AUGUST 0 19,068 #DIV/0!
SEPTEMBER 0 19,068 #DIV/0!
OCTOBER 0 19,068 #DIV/0!
NOVEMBER 0 19,068 #DIV/0!
DECEMBER 0 19,068 #DIV/0!
TOTAL 19,068 0 19,068 320 78%
2017 Arrivals HORIZON HORIZON
TOTAL #of LOAD
2017 HORIZON CHARTERS TOTAL TO DATE FLIGHTS FACTOR
JANUARY 6,102 6,102 6,102 105 76.5%
FEBRUARY 5,657 5,657 11,759 96 77.5%
MARCH 6,891 6,891 18,650 118 76.8%
APRIL 0 18,650 #DIV/0!
MAY 0 18,650 #DIV/0!
JUNE 0 18,650 #DIV/0!
JULY 0 18,650 #DIV/0!
AUGUST 0 18,650 #DIV/0!
SEPTEMBER 0 18,650 #DIV/0!
OCTOBER 0 18,650 #DIV/0!
NOVEMBER 0 18,650 #DIV/0!
DECEMBER 0 18,650 #DIV/0!
TOTAL 18,650 0 18,650 319
77%
YAKIMA AIR TERMINAL
AIRLINES BOARDINGS REPORT
2016
2016 Departures HORIZON HORIZON
TOTAL # of LOAD
2016 HORIZON CHARTERS TOTAL TO DATE FLIGHTS FACTOR
JANUARY 6,372 96 6,468 6,468 110 76.2%
FEBRUARY 5,937 230 6,167 12,635 110 71.0%
MARCH 5,907 0 5,907 18,542 111 70.0%
APRIL 5,804 292 6,096 24,638 107 71.4%
MAY 5,833 147 5,980 30,618 108 71.1%
JUNE 5,909 0 5,909 36,527 105 74.0%
JULY 5,479 65 5,544 42,071 99 72.8%
AUGUST 5,700 0 5,700 47,771 108 69.4%
SEPTEMBER 5,558 0 5,558 53,329 105 69.6%
OCTOBER 6,370 167 6,537 59,866 110 76.2%
NOVEMBER 6,401 88 6,489 66,355 111 75.9%
DECEMBER 7,023 0 7,023 73,378 106 87.2%
TOTAL 72,293 1,085 73,378 1290 74%
2016 Arrivals HORIZON HORIZON
TOTAL #of LOAD
2016 HORIZON CHARTERS TOTAL TO DATE FLIGHTS FACTOR
JANUARY 6,341 0 6,341 6,341 111 75.2%
FEBRUARY 6,015 324 6,339 12,680 112 70.7%
MARCH 5,987 0 5,987 18,667 113 69.7%
APRIL 5,715 147 5,862 24,529 107 70.3%
MAY 5,854 153 6,007 30,536 108 71.3%
JUNE 5,384 0 5,384 35,920 105 67.5%
JULY 5,348 62 5,410 41,330 99 71.1%
AUGUST 5,865 0 5,865 47,195 109 70.8%
SEPTEMBER 5,298 0 5,298 52,493 106 65.8%
OCTOBER . 5,644 190 5,834 58,327 110 67.5%
NOVEMBER 5,843 82 5,925 64,252 112 68.6%
DECEMBER 6,449 0 6,449 70,701 105 80.8%
TOTAL
69,743
958 70,701
OUTBOUND SUN XTRA
2016 CHARTERS COUNTRY AIRWAYS TOTAL TOTAL -TO -DATE
1297
71%
iO
P U RT,
WALLA WALLA
,IUB UREAIIt3N • IKAN 6F'0 N 1 A 10..]N
Walla Walla Regional Airport
Air Service Incentive Program
Port Commission Approval: June 11, 2015
Summary
The Port of Walla Walla, owner and operator of the Walla Walla Regional Airport, is pleased to
offer an Air Service Incentive Program to encourage additional passenger service for the
community. In an effort to encourage additional airline service, the Port Commission will provide
the incentives listed below.
The incentive program for additional air service will be reviewed by the Port of Walla Walla
periodically to ensure that it meets the air service development objectives of the Airport. It will
also be reviewed to ensure the program is consistent with guidance published by the FAA in
September 2010, titled Air Carrier Incentive Program Guidebook: A Reference for Airport
Sponsors in accordance with Federal statutes.
New Air Service Requirements (New Entrant Carrier)
• New entrant carrier providing passenger service to a non-stop destination that is
currently not served or underserved at the Walla Walla Regional Airport.
• A schedule with a minimum of two (2) roundtrip flights per week.
• Execution of an airline agreement for at least one (1) year.
New or Increased Air Service Frequency Requirements (Incumbent Carrier)
• An incumbent carrier providing increased frequency passenger service to a non-stop
destination market already served or not currently served at the Walla Walla
Regional Airport.
• A schedule with an increased frequency minimum of one (1) roundtrip flight per day.
• Execution of an airline agreement to provide this increased frequency for at least one
(1) year.
1
11
Program Eligibility
The incentive program being instituted by the Port of Walla Walla is outlined in more detail
below:
• Year-round scheduled service sold to the public.
• The new, non-stop service to unserved new city must be one that has not been provided
within the previous twelve (12) months.
• Incentives shall be offered on a reasonable, nondiscriminatory basis in accordance with
the airline agreement and FAA regulations. Any incentive will be offered to all incumbent
airlines currently providing service to ALW and will be available to any airline not
currently serving ALW.
• Airlines which participate in the incentive program must maintain the qualifying service
upon which the incentives apply for a period of not Tess than twelve (12) consecutive
months. If a participating carrier does not provide the service for the full 12 months, it
must reimburse the Port of Walla Walla for all incentives it has received related to that
service.
• The incentive for incumbent carrier shall be offered only on the flights that provide
additional frequency.
ALW Incentive
Landing Fees
■ Port of Walla Walla will waive 50% of landing fees for (6) six months.
Joint Promotional Program Incentive
• The Airport offers a Joint Promotional Program to airlines that provide additional
passenger service in accordance with the above eligibility requirements. The Port
will provide up to a $15,000 per year match with the participating airlines for a
period not to exceed two years. To qualify for the second year promotional
program the air carrier will be required to execute an airline agreement in the
second year of service for at least one (1) additional year.
The Port's contribution is not a cash subsidy to the airlines, but is intended for
promotion of the new air service in joint collaboration. The Program is designed
to be utilized in partnership with the Airport for the purpose of benefitting its
business to raise public and industry awareness of airport facilities and services
in conjunction with the new air service.
In order to qualify for funding, the airline must submit a detailed proposal for the
review and approval by the Port. The airline must commit to a cash match.
2
1Z
As. Y m ' .Y .Y v v u .Y . .Y
6 C a a a a a a a a a 6 a 3
_ .
N
rAN r -
AN m
M
JoU
as
11m
00Z'
UUUz
co 1a
igccZw_xm3v
Ja
i2N000202
0200
a a a a a a
aaaaaa
aaaa
Y 2.22
a a 1111
a a a a n n n
mILTT CCCCCCCCCG>.CF Tee CO
A8% ERpp fR{p aKa K1U��aamKW Um KKK Qi
W N N o 0 Y IU M 01 , N o UM1, m N
mo C OMN O t11 O NOO W M
P
J
02)0
2
W
E W
11111x11 sWx
--0-oo22Qsasaaw$
aaaaaaaaaaaoJ
3333333333301
m - N M< m m r m W
aaaaaaaaaaWa
n n a a
LOCG
K R K K K K
N @ V(p N h
aaa a
REEF,.
0000
000
"g2'.
0200
as
a
Y Y
aaa aaaaaaa X33
aaa 'anaa
h �
m m m
UUUU
zzzz
mmo0 0 N N
m r N
m tV Yaa Claa l
NNNN
a0m Mn
MAM
mmmm 000000 0000
000 U
$1Z: 1ZW
G ' �
33-g
v
mem
222
kkt
333
.21R.
O1R.
E0
222
00(01
to"vlmnrrrgcmOro G G
tp m O w OI of Oi til Cl m t�! a r N tmf r r Y m
I0INY<Y iR I . Milli
imls
Mn,c4ryOC.a MWMWtA
m m W W M W m M m m m m m W W W W M M m m W m W
N M O m m M Y N M P N M O m M r m m 0.- N M m m r m M R N N N N -IPIWrgnDMDg§Hg
a aaaaaaaaaaaaaaa
Fruitvale Drivein
2
>
>
U
13
DRAFT— Image Campaign Story Ideas
1) Adventurer RV — RV's made here in Yakima on Washington Avenue and sent beyond. Employer
of 150 people who make a product people rent all over Canada and Alaska for family vacations
in the mountains.
Key story lines:
• The number of RVs they make annually and visuals of the final product
• Their assembly line process
• Who their local suppliers are
• Why they picked Yakima
• Perspective on Yakima as a place to do business
2) Tieton Cider Works — Cider made here in Yakima using apples grown in Tieton and beyond.
Active members in Craft Beverage Yakima and local tourism market. Unique and very visual
process to making the cider. Grown here, made here, shipped to eight states.
Key story lines:
• Growth of Cider business nationally
• Details on their building (bought for ten times expansion)
• Process of making the Cider
• Their fantastic tasting room and where people are visiting from
3) YCH Hop Union — numerous local hop varieties grown in local farms, processed locally and sent
throughout the world.
Key story lines:
• How YCH conducts business by working with local farmers
• The growth of using unique hop varietals
• 400 new acres of hops within City limits on Congdon property
• Customer list and breweries who buy the products world wide
• New acreage growth in Yakima area
4) Johnson Orchards — Family owned business started in 1904 and one of the last remaining in
town orchards.
Key story lines:
• Family/history
• Tourism draw
• Small scale agriculture
• Diversifying business — bake shop
5) Manhasset Specialty Company — Music stand manufacturer who has been making quality music
stands for over 80 years.
Key story lines:
• Employee Owned business
• Family history; the company was moved here in 1940
• Development of new products/existing products
• Where the music stands go
6) Firman Pollen — For three generations the Firman Pollen Company has been suppling
supplemental pollen to customers across America and around the world.
Key story lines:
• Products
• Application and process
• Company history/relationship to the valley
• Product distribution/reach
7) HAAS
8) Liberty Bottle Works
9) Smitty's Conoco Log Cabin Cafe
Key story lines:
• A hole -in -the -wall restaurant in a unique location
• It's popularity on social media as being a place to get a great burger
• Family-owned and operated
• Little known to many people in Yakima
10) Deccio's All -Purpose Seasonings and Ranch Dip
Key story lines:
• Made locally for more than 40 years by Jean's Cottage Inn
• Produced at an iconic Yakima -area restaurant
• Family-owned and operated
• A unique product
11) Ljutic Industries
Key story lines:
• Founded in Yakima in 1959
• Recognized as the producer of the premier trap shooting rifle in the world
• A niche product few in Yakima realize is manufactured here
• Long-time member of the Yakima business community
12) Big Papa's Southern Sauce
Key story lines:
• Unique food product made in Yakima since 2009
• Sauce is actually made by "Big Mama" but named after her husband
• Sold at grocery outlets throughout Central Washington
• Looking to grow the company to employ local women
lS
13) The Range
Key story lines:
• State-of-the-art indoor shooting facility
• New member of the Yakima business community
• Also provides gunsmithing and custom firearms build services
• Unique marketing approach
1b
Memorandum
To: City Manager, Cliff Moore
From: Sean Hawkins, Economic Development Manager
Date: December 1, 2016
Subject: Downtown Yakima Partnership
Downtown Yakima Partnership Concept
Based on conversations with the City's Council Economic Development Committee, there
appears to be general consensus for the City's Economic Development staff to transition out of
the day-to-day work they have been performing in downtown development and shifting this work
to the Downtown Association of Yakima. Throughout the last few months, City of Yakima staff
have been working directly with the Downtown Association of Yakima and various downtown
stakeholders on the creation of a Downtown Yakima Partnership proposal. The partnership
model is the most common downtown management method used throughout the United States.
The concept of the Downtown Yakima Partnership would be to place Yakima's three pillars of
downtown activity under one organizational home. Under this proposal, the Downtown
Association of Yakima would manage the three following reoccurring downtown programs:
1) Promotion and Downtown Communication — These services are currently performed
by the Downtown Association of Yakima with City assistance.
2) Downtown Event Production — the City of Yakima Economic Development
Department currently produces Downtown Summer Nights, Roots and Vines
Festival, Blues and Brews Festival, Lunchtime Live, Light Up the Plaza and more.
3) Downtown Yakima Business Improvement District — the City of Yakima Economic
Development Department currently manages the Block by Block contract for
downtown maintenance services.
Downtown Yakima Partnership Funding
To fund the Downtown Yakima Partnership, City staff seeks guidance from council on funding
the following three expenditures:
Washington State Main Street Tax Credit
City staff is seeking council approval to enter into an agreement with the Downtown Association
of Yakima to continue an annual application for a Washington State Main Street Tax Credit. The
City of Yakima has successfully applied for this funding in 2015 and 2016. The City of Yakima
annually pays over $500,000 in utility taxes to the State of Washington and upon Department of
Revenue approval, this program allows us to keep up to $100,000 of our annual tax obligation
Page 1 of 3
and provide it to our local State Certified Main Street program. The tax credit program allows a
tax credit to the City in the year after it is approved so the tax credit we were awarded in 2015
reduced our utility tax obligation in 2016.
The tax credit funding works like this:
2016 — City pledges $133,333 to the Downtown Association of Yakima and applies to
the Department of Revenue for the tax credit on the first working day of 2017;
2017 — City receives $100,000 tax credit towards their State of Washington Tax
Obligation as a result of the pledge;
2017 — Downtown Association reimburses the City of Yakima $33,333 to cover the net
cost of the tax credit.
Under this scenario, the impact to the City of Yakima budget would be zero and funding to
provide downtown events and maintenance is made available.
City of Yakima Special Event Fund
City staff is seeking council guidance on $30,000 in annual funding from the $75,000 to the
Downtown Association of Yakima to produce special events in downtown that the City of
Yakima Economic Development staff originated in 2013 such as Downtown Summer Nights,
Roots and Vines, Blues and Brews and more. The $75,000 Special Event Fund noted above is
included in the 2017 City of Yakima draft budget. It is recommended for the City to exit out of
assisting downtown events by providing $30,000 toward them in 2017, $20,000 toward them in
2018 and $10,000 towards them in 2019. The balance of $45,000 in the Special Event Fund in
recent years has been used to fund Cinco De Mayo, Viva La Music and Yakima Folklife Festival
and would be available with council consideration to fund again in 2017.
Downtown Yakima Business Improvement District
Since the inception of the Downtown Yakima Business Improvement District in 2008, the City
has made an annual contribution of $50,000 to the district budget to represent the properties the
City owns in the district including the Capitol Theatre, Convention Center, City Hall and
municipal parking lots. Including the City's participation, the DYBID produces annual revenue of
$210,000 annually specially for maintenance funding. The City's portion of DYBID funding is
included in the 2017 City of Yakima draft budget and is sourced from the Central Business
District account. It is recommended that this funding continue as long the district remains in
existence.
Downtown Yakima Partnership Creation Timeline
The following is a possible timeline and steps to establish the Downtown Yakima Partnership:
December 2016 — Yakima City Council approves State of Washington Main Street Tax Incentive
in the City of Yakima budget for $133,333. City Council will also consider a special event fund of
$75,000 in the City of Yakima 2017 Budget. The Downtown Association would refund the City
of Yakima back the net portion of the Main Street Tax Incentive.
Page2of3
ig
December 2016 — The Downtown Association of Yakima will advertise locally and nationally to
fill an Executive Director position. The expectation will be to have this position fill by March 1,
2017.
January 2016 — City staff will bring a resolution will to the Yakima City Council authorizing the
City Manager to execute two agreements with the Downtown Association of Yakima.
1. Approve a three year agreement for the City to apply for the maximum
amount of annual funding from the Washington State Main Street Tax
Incentive. This is currently set at $133,333 annually. The funds available
to the Downtown Association of Yakima would be subject to the
availability of funding available through the State of Washington Main
Street Tax Incentive Program. The Downtown Association of Yakima
would refund the net portion of the funding back to the City of Yakima.
2. Approve a three year agreement for $30,000 of special event funds to
produce Downtown Summer Nights, Roots and Vines Festival, Blues and
Local Brews Festival, Second Saturday Cruise Nights, Holiday Activities
and other special events. This funding would be sourced from the City's
$75,000 Special Event Fund. The amount would be reduced to $20,000 in
2018 and $10,000 in 2019. It would be written into the agreement that the
funding would cease 2020.
January 2016 — the Downtown Association of Yakima will create one seat on their board for the
City's Economic Development Department and the City Council will appoint a liaison to attend
board meetings.
March 1, 2017 — The City of Yakima Purchasing Department will provide a one month notice to
Block by Block of the termination of their maintenance contract.
March 2017 — City staff will bring a resolution to the Yakima City Council authorizing the City
Manager to approve a maintenance agreement with the Downtown Association of Yakima to
provide services in the Downtown Yakima Business Improvement District. The Downtown
Association of Yakima would be required to hire and supervise a minimum of 120 weekly hours
of clean team services. The City's DYBID contribution as well as the remaining balance of the
2017 portion of the DYBID maintenance fund will fund this work. The City Council would also
end the Downtown Yakima Business Improvement District Advisory Committee and require that
the Downtown Association of Yakima create a Clean and Safe Committee to address clean and
safe issues in downtown Yakima as part of the maintenance agreement.
Page 3 of 3
tl