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HomeMy WebLinkAbout02/20/2018 05A Update of Strategic Planning ProcessBUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDASTATEMENT 1 Item No. 5.A. For Meeting of: February 20, 2018 ITEM TITLE: Update of Strategic Planning Process SUBMITTED BY: Ana Cortez, Assistant City Manager SUMMARY EXPLANATION: See attached. ITEM BUDGETED: STRATEGIC PRIORITY: APPROVED FOR SUBMITTAL: STAFF RECOMMENDATION: BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date D strategic planning 216/2018 O econ dev 2`16/2018 O Economic Development Strategic Plan 2'1512018 Type Coker Memo Coker Memo Coyer Memo 2 To: City Manager, Cliff Moore From: Ana Cortez, Assistant City Manager Date: February 14, 2018 Subject: Strategic Plan Update On January 9, 2018, the City Council agreed to update the 2015 Strategic Plan so that the Council's committee structure would be directly linked to strategic priorities. This decision reflected a desire to give new and incumbent Council members an opportunity to elaborate on priorities and even modify specific aspects of the plan. On February 1 and February 9, Council further discussed a process for engaging in strategic planning discussions. Council indicated that they wanted to use scheduled time during their briefings and business meetings as well as schedule up to one half day on a Saturday. Furthermore, Council directed staff to secure a pro-bono facilitator. As of the date of this report, we have not identified a pro-bono facilitator. On February 6, Councilwoman Funk indicated that she has submitted a proposed committee structure prior to the meeting. Staff emailed this structure to the Council on February 9, 2018. The Councilwoman has provided additional input on key steps to be addressed by the update, including: • Consideration on whether the overarching goals (reflected in the four committees) are adequate and up to date for addressing current problems. • Ability of each Council member to possibly provide weighted priorities and identify new functions. • Sorting of external boards into the new committee structure. • Recognition of crossover areas for Board and Committees. In subsequent communications, Council has asked for clarification on next steps. This council report addresses this request. Purpose The purpose of the strategic plan update is to revisit the main elements of the 2015 Strategic Plan and to recommit to these components. Furthermore, by updating the plan, Council seeks to adopt a committee structure that reflects strategic priorities for the next two years and to outline an action plan on how these priorities will be executed. However, there is interest in focusing the update on the Committee structure. For this reason, we offer the following options: 3 Option 1- Review vision statement, priorities and 2 year action plan. Deliverable: Vision Statement + Priorities + Committee Structure + 2 year Action Plan Time commitment: four encounters Option 2- Review priorities and 2 year action plan. Deliverable: Priorities + Committee Structure + 2 year Action Plan Time commitment: three encounters Option 3- Review priorities only and outline committee structure. Deliverable: Priorities + Committee Structure Time commitment: 1-2 encounters The different options demand different time commitments. If we assume that each component (Vision + Priorities + Committees + 2 Year Action Plan), requires one encounter, then up to four strategic plan update meetings could be necessary: 1. February 21 2. March 1 3. March 6 4. March 10 or March 17 (Saturdays) Next Steps Staff seeks direction from Council to describe the scope of work and time commitment to a facilitator. The option selected by council will determine the deliverables and time commitment. For Consideration Best practices in strategic planning processes show that such process begins with a vision statement. This conversation is complemented with mission statements and values discussions. In order to include the traditional first step in a strategic planning discussion, staff reviewed various documents to identify a vision statement. The 2015 Strategic Plan mentions the importance of a vision that provides direction for strategies and execution. The document, however, does not provide an explicit vision. Staff has identified the following components of a potential vision statement: • Customer focused government • Data driven and results oriented government. The Yakima Comprehensive Plan 2040 outlines a vision. Staff has identified the following components of its vision statement: • Inclusive to all people • High quality of life for youth and families • Destination/Natural beauty • Neighborhoods that are attractive to live, shop and play; connected community • Thriving and vibrant community 4 Options Staff offers the following statements for consideration; staff understands that if Council selects option 1 or 2, then the following statements can be discussed at a later time if at all. Staff also understands that Council may choose to delay adoption of a two year action plan to later in 2018. 1) Yakima is an inclusive city, a destination in the Northwest that offers results oriented public services evidenced by its high quality of life for all ages and its thriving, connected and safe neighborhoods. 2) Yakima is a community that welcomes all, believes in customer oriented government, delivers high quality services to all, balances progress with natural beauty and history, supports vibrant, thriving, safe and connected neighborhoods. Additional Documents Finally, NCBC requested two additional documents that should be incorporated into the Strategic Plan update discussion: 1- The Economic Development Strategic Plan 2- Allison Larsen's presentation on the Economic Development Strategic Plan Council agreed that its members would review documents sent on February 9th and those attached to this report. YAKIMA ECONOMIC DEVELOPMENT RAT GI Presented by:Allison Larsen, CEcD — Principal of TadZo PROJECT OVERVIEW Phase 1 Where are you now? Current Situation Phase 11 Where do you want to be? Strategic Priorities Phase 111 How will you get there? TODAY'S MEETING PURPOSE HOW AN ECONOMY GROWS Bring wealth into community by selling outside area/economic region (traded -sectors) 1 1 Creates jobs for families III L* Grows I 1 demand for real estate & construction Stimulates non -traded -sector business growth ilr iriTt4 NEN- Tax base grows: sales & property taxes Creates more jobs & su pports traded -sector growth Suppliers Bring wealth into community via visitor spending • J J f � HOTEL 1 Creates jobs \ .26 Grows demand for real estate & construction • Af4 W M W Stimulates non -traded -sector business growth Stimulates more non -traded -sector business growth Tax base grows: sales & property taxes HOW IsYAKIMA's ECONOMY PERFORMING? I2% I0% ai 6% 4% 2% 0% 11% 2% POPULATION CHANGE 2011-2016 10% 4% 3% 4% 10% 4% 1 3% 6% 4% I% Yakima Chelan Franklin Kitsap Kittitas Whatcom Deschutes Jackson Butte Canyon Twin Falls Missoula County, County, County, County, County, County, County, County, County, County, County, County, WA WA WA WA WA WA OR OR CA ID ID MT Source: US Census Bureau, birth and mortality rates from the US Health Department 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 CITY OFYAKIMA SALES TAX 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1st half year 2nd half year Source: City ofYakima CITY OF YAKI MA PROPERTY TAX COLLECTIONS GROWTH IN PROPERTY VALUE 18,000,000 & PROPERTY TAXES 16,000,000 14,000,000 PROPERTY VALUE 12,000,000 10,000,000 6, 000, 000, 000 5, 000, 000, 000 4,000,000 8,000,000 2,000,000 6,000,000 !Ili: i i 4,000,000,000 3,000,000,000 2, 000, 000, 000 1, 000, 000, 000 0 zz1/43 di\ 06: b e Z o\Z 0\\ Z<V 0 0\1 ' s k CP 0 6 sze •z.Orb Oo <O \\ <1• <', tz•\ok <hize tzi Source:Yakima County Assessor il il 1 250 200 150 100 50 0 CITY OFYAKIMA COMMERCIAL PERMITS 15 k 4 1 53 II 4 2009 2010 2011 2012 2013 2014 2015 2016* New ■ Alterations * 2016 data through 9/12/2016 Source: City ofYakima $100,000,000 $90,000,000 $80,000,000 $70,000,000 $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 CITY OFYAKIMA PERMITTEDVALUE $- 1 1 1 1 1 1 1 I 2009 2010 2011 2012 2013 2014 2015 2016* New —Alterations * 2016 data through 9/12/2016 Source: City ofYakima Missoula County, MT Twin Falls County, ID Canyon County, ID Butte County, CA Jackson County, OR Deschutes County, OR Whatcom County, WA Kittitas County, WA Kitsap County, WA Franklin County, WA Chelan County, WA Yakima County, WA Yakima Zipcodes JOB GROWTH 20 I I - 20I6 0% 5% I0% *Yakima Zipcodes extend beyond city limits: 989901, 98902, 98903, 98904, 98907, 98908, 98909 15% 20% 25% 30% Source: EMS! $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $ 10,000 $0 MEDIAN EARNINGS Current Median Earnings COL Adjusted Total Current Earnings $42,088 $43,381 Yakima Zipcodes Yakima County, WA *Yakima Zipcodes extend beyond city limits: 989901, 98902, 98903, 98904, 98907, 98908, 98909 $62,563 Washington United States Source: EMS! (BLS Occupational Employment Survey, Census American Community Survey) 1 $65,000 $60,000 $55,000 $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 COMPARISON MEDIAN EARNINGS Current Median Earnings COL Adjusted Total Current Earnings 1 1 1 1 1 1 1 1 Yakima Chelan Franklin Kitsap Kittitas Whatcom Deschutes Jackson Butte Canyon Twin Falls Missoula Zipcodes County, County, County, County, County, County, County, County, County, County, County, WA WA WA WA WA OR OR CA ID ID MT Source: EMS! (BLS Occupational Employment Survey, Census American Community Survey 1 35.0% 30.0% 25.0% 20.0 15.0% 10.0% 5.0% 0.0% PERCENTAGE BELOW POVERTY LINE PAST 1 2 MONTHS 44P 44P 4AP ,e- ,I4P ,e- 041.- OS' GP ° �° �^� Go• G°- Go• Go• Go• Go. G° • G° G° G°• G° Go. .�,� \ezt, �S�Q `d5 `off mac, ��°� � � ��4O t. �o��� • •� ,ate . �e eb,K., r c. G • 5 • All people • All families Families w/ Childrem >5 years Source: Census American Community Survey IS YAKIMA IN A GOOD POSITION TO IMPROVE? THE LOCATION SELECTION PROCESS • All Projects Typically Follow the Same Path Strategy `W Location W Due Development Investigation Diligence Evaluate Strategic millpli Screen & Evaluate Alternatives Communities/Sites Implement Project Conduct Due Diligence Negotiate Incentives You have to do everythin imi right if you ri want to stay in the race LOCATION SELECTION IS A PROCESS OF ELIMINATION Long List of Alternatives / Location Options Favorable Strategies / Candidate Locations Short -List all Locations Finalists AL Selected Location M. THE OPTIMAL LOCATION BALANCES COMPETING INTERESTS Minimize Risk Minimize Operating Costs Optimal Location Minimize One Time Costs "BEST PRACTICE" ECONOMIC DEVELOPMENT ALIGNS WITH LOCATION SELECTION PROCESS 1 Strategy Location Due Implement Development Investigation Diligence Project 1. Radar Screen/Top of Mind Awareness 2. Prove Location of Choice . Deliver on Promises GOAL: Avoid Giving Potential Investor a Reason to Walk Away from Your Community 4. After Care HOW COMPETITIVE ISYAKIMA? Convention & Visitor Portfolio Sustainability Business Climate Entrepreneurship & Innovation Resources Real Estate Everything & Eve ryo n e Working Together = Competitive Community lir Transportation Utilities & Infrastructure Permitting & Regulatory Environment Human Capital — Skills, Talent Relocation, Pipeline REAL ESTATE Does the community have available buildings or sites that are 'ready to go'= ■ Quality buildings & facilities fit to target prospect requirements ■ "Shovel ready sites" ■ Certified sites ■ Competitive costs — purchase, lease rates, construction CASCADE MILL SITE Yakima's front door & opportunity • Challenges with environmental issues: landfill, wood debris, plant clean-up • Funded transportation access improvements • Ownership • Vision • Patience ..*T. Concern this opportune site will become just another move around the community without net gain AIRPORT SITES • 17 + 1 1.4 acres with future airport access • Highest near-term economic development • Opportunity to build cluster via supply chain C U BCRAFTER City -owned site qF ➢:.T 7C 31 ITC! EN wiI AR4 79Al2 H <4_ IJ �3'A4m owc wv .[M a.f as -»aa A mF � —• L OT uero T3T. c T14�6 PLSA Strategic economic development or short-term thinking (more hangers, retail, etc.)? YAKIMA SPEEDWAY Potential opportunity, but work to do: • Environmental issues? • Highest and best use? • Master plan • Site readiness Speedway AVAILABLE BUILDINGS • FOR LEASE: Former Ace Hardware, multi -tenant [41,820 SF] • FOR SALE: Concrete, tilt -up @ 26th & Ahtanum Rd [25, 216 SF] Naehes`Riv,. :. Willow Lake CRITERIA FOR RATING FACTORS = World-class competitive advantage B = Competitive, but missing key elements C = Neutral; found in many communities = Fundamental assets are missing = Disadvantages so great it could be a "deal killer" YAKIMA REAL ESTATE - TRADED -SECTOR A I o• • 2 available quality industrial buildings • No available significant -sized, modern/Class A office space • Negligible incubator, accelerator and coworking space • 28 acres near airport, one site under control of City • 2 brownfields with no clear development plan/master plan — far from "shovel -ready" state • No certified sites TRANSPORTATION Is the community accessible 4.^r - business and residents? • Highways / Interstates • Local roads — access and conditions • Air service — commercial and cargo • Rail service — frequency of services; rail spur • Ocean ports • Carrier services — LTL, small parcel • Public transportation YAKIMA'S TRANSPORTATION 1-82 to 1-90 US Hwy 12 US Hwy 97 *Mountain pass closures 25 freight trucking firms, but competition during harvest 4 daily commercial flights — SEA 7,604 ft. runway 2010 new runway $11 million taxiway improvement Passenger growth 20-26K last 5 years Local road improvements needed - Linked to water ports in Pasco, Portland, Seattle &Tacoma Seattle EUGENE AIRPORT p Portland EUGERE Sa n Francisco Oakland n_mot 0 Salt Lake City 0[ns Vegas ^` otos Angeles °Phoenix 0Den UTILITIES & INFRASTRUCTURE Are all utility services in place and able to support new operations? ■ COST — rates and fees ■ Infrastructure cost ■ System capacity ■ Service size ■ Quality / Reliability ■ Service provider reputation, service ■ Electricit ■ Natural G ■ Water ■ Wastewater ■ Telecom YAKIMA'S UTILITIES & INFRASTRUCTURE PACIFIC POWER Reputable service providers Competitive power rates Water & waste water capacity for growth Waste water investments • 2013 Industrial Waste Reactor (UASB) • Waste Water Collection Master Plan — improvements to trunk lines Aging water infrastructure • No rate increases for last 4 years; no connection fee increase since 1998 • Drawing on reserves >1 ll 11 I lit it \ 1 E 1 lil I'> ik I Charte OMM UNICATIQNS %Integra PERMITTING & REGULATORY ENVIRONMENT • Does the community promote fast track development? Permitting and approval process — clear, consistent, fair ■ Speedy permitting/community understands time is money ■ Is the regulatory approach punitive or helpful? ■ Green building standards in place z Apply online Pay o ons L•'t Cl 0 O J 1 YAKIMA'S PERMITTING & REGULATORY ENVIRONMENT That was then... • Perception versus reality — not the same staff • Tried to manage expectations %IP Nit, This is now... • Solution -oriented • Search code if truly a requirement • Staff take direct calls • Concurrent permitting • "Pre App" meeting encouraged • Permit Project Coordinator • Current fee structure unrealistically low; proposed fees in line with competitors • No impact fees • Need to tell your story better HUMAN CAPITAL Does the community have a labor pool in place that is trained, cost effective, and available? ■ Availability — various skill levels as required ■ Ability to recruit from outside community ■ Competitive wages and benefits ■ Work ethic and soft skills ■ Labor relations management/unions ■ Training resources ■ Future pipeline of workers 11111 it 9 611111111MiliArli YAKIMA'S HUMAN CAPITAL • World-class training for skilled occupations • Entry-level challenges: • soft skills, drug tests • read a tape measure, 5th grade math • How addressing unemployable population? • Entry-level professionals: challenge to fill • turnover • Crime, poor curb appeal negatively impact talent relocation • Union membership 2.5% private sector; Not right-to-work state • Need for workforce pipeline alignment • What is proactive approach to coordinated job growth/placement? 4 II V --TECH .Ash sa i'.p- y4 • i `i okim ,lley llleg.: Y iL, k AA 1146. EXPO ENTREPRENEURSHIP & INNOVATION RESOURCES g. Does the community facilitate relevant resources to support business growth and innovation? ■ Culture for entrepreneurship ■ Resources for business development & start-ups ■ Local research institutions engaged with business for innovation, R&D ■ Tech transfer ■ Patents, licensing of technology ■ Financing available for innovation & entrepreneurs YAKIMA'S ENTREPRENEURSHIP & INNOVATION RESOURCES NEW Vi51dN and PlinMEERCE ENTERPRISE CHALLENGE Business Plan Contest Conc-pt Exploration: Incubator — Commercial Kitchen — Public Market Fairly disconnected ecosystem of resources &..r service providers Available equity capital? Limited access to innovation resources Piecemeal strategy The hub of all things entrepreneurship in the Inland Northwest Portal encompasses all resources in region: ✓ Entrepreneurship assistance • Technical • Financial ✓ Coworking space ✓ Mentor network ✓ Events ✓ Workshops ✓ Podcasts ✓ Blog y 3+ Get Started - Who Are You? Programs Events + Workshops Podcasts Blog Resources Contact About • Welcome to Startup Spokane, The Inland Northwest's First Stop For Entrepreneurship Assistance and Resources! Find Your Path Below and Get Started! Welcome to Startup Spokane, The Inland Northwest's First Stop For Entrepreneurship Assistance and Resources! I'm An Entrepreneur Find Your Path Below and Get Started! I'm A Potential Mentor I'm A Community Member I'm An Industry Expert Or Company Startup Spokane 610 W. 2nd Ave 1 Spokane, WA 99201 509.321.3626 1 Startup@GreaterSpokane.org Contact Us 1 r•1 EDCO is at the hub of this dynamic web, connecting entrepreneurs with trusted advisors, industry experts, angel investors, venture funding, and the resources they need to launch and thrive. rik Brian Vierra Venture Catalyst EDCO Venture Catalyst Performance: Measureable Impact 4 Company Matings 888 (by the numbers) .... .... .... Jobs Events Created Invested Capital 220 98 28 $15,024,500 'FoundersPad Founders FoundersPad Payroll $3,958,416 EDCO AtirecsFYJuy'i4 June 15 SEVEN PEAK E T RE c. A BONFIRE 2016 XI UBEi 5 6rII 14 EEIIO. t)REIVI I • r'. SUSTAINABILITY How "Green" k the comr1t1niti1' ■ Community promotes green concepts, permitting, other initiatives ■ Local energy efficiency programs / recycling and reuse programs ■ Community/residents embrace "green" culture — increasingly important to talent attraction YAKIMA'S SUSTAINABILITY • Expected in Washington... to live up to state brand • Pacific Power • Diverse portfolio: wind, hydro, geothermal = 1 9% • American Wind Energy Assn: 2nd largest rate - regulated utility owner of wind resources nation • Energy efficiency tech assistance • City lacks: VSustainability plan VCurbside recycling jitvit VCulture of sustainability1, Michelsen packaging company BLUES renewable energy 1 PACIFIC POWER YOUR DOLLARS ATWORK COULDYOU MEET SIERRA NEVADA BREWING CO.'S NEEDS? • "Way of Life" for Ken Grossman: use resources efficiently & eliminate waste • Striving for Zero Waste • Recover 99.8% total solid waste • Key Performance Indicators — what you measure you improve • June 2016 — LEED Certified Platinum for Mills River, NC brewing facility • Generating electricity: • Solar panels • Microturbine from wastewater treatment plant • Employee interview question Cheri Chastain Mandi McKay Leah Cooper Sustainability Manager Sustainability Coordinator, Sustainability Coordinator, Chico Mills River Chester Clever Sustainability Support, Chico INCENTIVES Does the community demonstrate support fpr the project? ■ Available state and local incentive programs ■ Cash Tax credits ■ Deferrals, reductions ■ Free land ■ Workforce training, recruiting services ■ Fast-track permitting ■ Incentive policy, agreements, claw backs ■ Other community services — creative benefits YAKIMA'S INCENTIVES • Helping local business access State incentives • Offer accountant services • Rural Community Empowerment one (CEZ) • 1 of 5 in state 11 •/ J F JAI. ;-Ir ;1 J' - - 4a 1 i —1 -1 - J ' 1s - • .4%• 1 s -LUL .JA . 11111 I— _ •- • • 1 r•it 11_ -- , 41. 'S 'll f- -r 1 yl`1 M. t711_i _ hII I f •7� — -11 i111t— — I 111 111111-- 1 {-- w Hr_ _.111'_ n..-1 I r- i -! TT, f = r;rlrrl+ 1 it1 Ili 55551;11111 -1 Tait , i A;_--,_ .. I r 7 ~ 1 ,11 i ' ' i, _ L Imo_ 4 �. da ▪ • IL 1.1 11 11 • County -wide SIED (directed at infrastructure) - • 1999-2015 = $39,682,805 investments in 116 projects, >2,000 jobs created, 300 jobs retained, >$310 million private investment, estimated $2,000,000/year increased tax revenue • Refinements to incentive policy in process • No economic impact analysis of projects • You might have more than you think if packaged creatively • Money • Speed • Services • Unused tool: Washington State Port District Act for Industrial Development District WASHINGTON CONVENTION &VI5IT0R PORTFOLIO Does the community offer a strong case for hosting conventions and visitors? ■ Curb appeal ■ Accommodations ■ Venues & Experiences ■ Unique sense of place ■ Safe ■ Modern & adequately -sized convention & meeting space SENSE OF PLACE • Downtown efforts underway • Opportunity for uniqueness • Stay the course E Yakima Avenue YAKIMA'S CONVENTION & VISITOR PORTFOLIO 1 • Don't judge us until you get through the "front door" • Expansion of convention center & convention hotel to maintain clientele, let alone expand utilization • Cost-effective conventions • Increased capacity and quality of accommodations since 2006, but convention hotel a liability • Diverse venues & amenities — many hours of experiences • Downtown is emerging into positive identity • Safety one -block off Yakima Avenue? , 1 • Excellent website & branding eome to THE SOURCE It's the 300 days of sun that shines on the birthplace of Washington State's wine Industry. It's the aroma of freshly picked hops. drifting on the afternoon breeze. It's the sense of wholesomeness you get from hand picking the vegetables your family will eat that night. This Is what makes the Yakima Valley so spacial. BUSINESS CLIMATE (6) Does the community support new development now and are they planning for the future? ■ Local official involvement and leadership ■ Vision for community ■ Government support for growth ■ Public opinion - do people want to grow? ■ Business retention program ail- YAKIMA'S BUSINESS CLIMATE • Outreach to existing traded -sector businesses — delegated toYCDA/New Vision • Visits • Industry roundtable • Lack of External HQ visits - risk Two City Best Practices: OP The Official Website of the City of Henderson, Nevada CityofHenderson.com • Apathy — letting things happen instead of driving change • Focus on Downtown • No Strategic Plan for economic development.... But working on it • New and qualified leadership at key organizations • Community Pride? • "JustYakima" • Lack of telling story • Starting to bubble up • Do you have the guts to act? Do what needs to be done? 2015's Best Cities to Found a Startup,N 11 IZWA\ BUILT BY INDUSTRY INSPIRED BY INNOVATION We are proud of our strong history of innovation and traditional manufacturing. We've built on that tradition to become a center of advanced manufacturing - industries ranging from ftexible electronics to biomedical devices. Cleveland is one of the worlds Feeding medical centers and home to ek tt Fortune 1000 company headquarters. City of Cleveland's Recent Large Developments Lakefront Development Plan • Garfield Building Hilton Cleveland 925 Building Downtown • ▪ Ameritrust Complex • • Schofield Building UH Rainbow Center for Women & Children Link ■ Health Tech Hospitality ■ uptown UC3 ■ Innova ■ Flats East Bank Development Public Square NuCLEus IBM ■ Centric One Un▪ iversity Circle Mew Available Properties r Yew Map Center s v..e.. ,•Y. . Recent News Friday, September 23, 2016 fIrl Rrnnklvn Chs C'n — "A Boomtown Cleveland Cleveland is reinventing itself into a 21st century City while leveraging billions of public and private investment. From 2011-2015 a total of 58 billion Planned Construction Innova- S175M Lakefront Development Plan-S280M University Circle Central District -5280M Read more Completed Projects Public Square -550M Caw Convention & Visitor Portfolio C.1. Incentives Sustainability Business Climate Entrepreneurship C& Innovation Resources Real Estate Yakima's Current State of Competitiveness Transportation Utilities & Infrastructure Permitting & B'�" Reg Human Capital —Skills, Talent Relocation, Pipeline F Phase 1 Where are you now? Current Situation Phase 11 Where do you want to be? Strategic Priorities Phase 111 How will you get there? Action Plan i i YAKIMA ECONOMIC DEVELOPMENT STRATEGY INPUT WORK SHOPS ■ Contact Sean Hawkins with RSVP Sean.Hawkins@Yakima.gov (509) 575-6274 Til •P r ir, �1 1 67 Yakima Economic Developme Strategic Plan A plan to spur and sustain the growth of Yakima's Economy over the long-term YAKIMA, WA 2017 - 2020 68 69 I. Plan Purpose The purpose of the work covered in this plan is presented as a "due North" compass for success. The plan defines priority economic development initiatives in the City of Yakima through 2020. We aim to spur and sustain the growth of Yakima's economy over the long-term by collectively working to grow quality jobs — those jobs that pay well, enabling resident workers to buy homes and afford a quality lifestyle. As a result of quality job growth and relevant training to upgrade skills — thus increasing access to opportunities for all job seekers — unemployment will decline, contributing to decreased poverty rates, while diversifying the local economy for stability through economic downturns and upturns. Business, job and visitor growth all contribute to increasing the tax base. With increased tax base, Yakima will be able to provide more services and investment in the community, thereby growing more jobs. Yakima Economic Development Strategic Plan 1 2017 - 2020 0 /111111811114Starting Increased with... tax base Jobs & training / \v Stability Diverse economy oamtais Reduced poverty rates Lower unemployment 70 Efforts to make Yakima's economy more robust will improve Yakima's image in the eyes of prospective businesses and investors. Pride will increase among residents because the economy is growing and more investment makes the community a higher quality place. The purpose of this plan goes beyond economic outcomes. By working together on the creation of this community -wide economic development strategy — and implementing together — we utilize limited resources more effectively towards common purpose. We also accomplish more working side-by-side in a coordinated effort. By working together "all boats float higher". The waterline rising is symbolic of Yakima's economy at a higher level. II. Planning Process Recognizing that many organizations pursue economic development as a core mission, a broad group of organizations led this planning process on the Steering Committee: • City of Yakima — Councilmembers, City Manager, Economic Development Department Staff • Greater Yakima Chamber of Commerce • Hispanic Chamber of Commerce of Yakima • Rural Community Development Resources • Yakima County Development Association • Yakima Valley Tourism The planning process involved three phases, as detailed in the following graphic: Phase 1 Where are you now? Current Situation Phase 11 Where do you want to be? Strategic Priorities Phase 111 How will you get there? Action Plan In addition to an actively engaged Steering Committee, three public workshops were held to gather input for strategic initiatives. With the Steering Committee's agreement on twelve priority strategic initiatives, Strategic Initiative Working Groups were initiated to layout specific work for each strategic initiative and define roles for implementation. Over 100 people were involved in providing input and guidance for plan development. Yakima Economic Development Strategic Plan 1 2017 - 2020 0 Yakima Economic Development Strategic Plan 1 2017 - 2020 0 III. Strategic Initiatives to Spur & Grow Yakima's Economy The Steering Committee prioritized twelve Strategic Initiatives that group into three main categories: YAKIMA'S COMPETITIVENESS fSites for Business 4N Mill Site Redevelopment 4 Public Authority) District Incentives 1 Educational Alignment 4 Air Service \ 4 Convention Center Expansion , TRADED -SECTOR BUSINESS & QUALITY EMPLOYMENT GROWTH Incubator , 1 4N Airport Business Growth 1 4 Recruit Cluster Industries 1 COMMUNITY PRIDE Centro de la Raza 4Image Campaign 71 72 A. Yakima's Competitiveness In order to successfully grow the economy over the long-term, important factors need to be improved to ready Yakima for business and convention opportunities. At present Yakima is falling behind competitive communities vying for similar economic development opportunities. The Steering Committee prioritized seven vital initiatives to improve Yakima's business case — compelling reasons why a business or convention would select Yakima for investment. SITES FOR BUSINESS Goal A diverse portfolio of sites ready for business location that provide Yakima a competitive advantage because infrastructure is in place, any contamination is addressed and owners are willing to sell/lease. Why Important? Businesses need a place to locate. Yakima has finite land available within city boundaries. By identifying and readying sites for business development, we will preserve land for economic opportunities, increase the tax base and improve our image as a vibrant place for business with desirable curb appeal. Tactics - Sitbo IVO uu01nca • Inventory and prioritize potential sites Evaluate urban growth area for future sites (i.e. Tier II) Prioritize redevelopment sites/corridors • Engage landowners and understand willingness to partner • For each site, beginning with airport sites owned by the City Determine gaps for each site's competitive readiness Develop site-specific plans to upgrade conditions. Depending on site, this may be master plan with infrastructure planning Pursue funding for infrastructure and other improvements (i.e. CERB, requests to state, etc.) Link to available tools • Inventory available sites on the market • Document site information: zoning, infrastructure, planned and funded infrastructure, incentive zones, pricing, terms, etc. Conduct meetings with property owners or representatives Utilize city mapping resources • Determine best -fit target businesses and run hypothetical project pro forma • Post complete site and building information to online real estate databases on City and YCDA (www.ycda.com) websites • Develop a system for maintaining complete information on websites; verify and update at least every 90 days • Pursue certified sites designation Yakima Economic Development Strategic Plan 1 2017 - 2020 O Core Working Group - Sites for Businr., Lead Tea m Resources Yakima County Development Association & City of Yakima — Economic Development Department City of Yakima — Planning Department, Engineering Department, Airport Landowners Real estate brokerage community Yakima County Development Association Washington State Department of Ecology Washington State Department of Transportation Metrics — Sites for Business Process Metrics Outcome Metrics ✓ Inventory complete V % of projects qualified for with available ✓ Online databases complete sites ✓ Defined best fit business targets for sites ✓ Capital investment on targeted sites ✓ Upgrade plans complete ✓ Number of jobs and wages associated ✓ Certified sites with business establishments on targeted sites ✓ Economic impact to document return on investment of public investments to sites/infrastructure 73 74 MILL SITE REDEVELOPMENT Goal Support the redevelopment of the former Cascade Lumber Company mill site to accommodate quality jobs and increase Yakima's tax base, as well as present a quality development at Yakima's highly -visible northern "front door." wny Important? The location of the mill site, at Yakima's northeast boundary, has potential to significantly improve the first impression of the community. Yakima has finite land for job creation. However, with funding secure to improve site access, there is risk that development at the site could only move existing businesses from other parts of the community without net economic gain. A thoughtful and strategic development plan is essential for long-term and sustained quality economic development. As such, quality development would increase Yakima's image and grow the tax base. .actica Mill Site Redevelopment • Understand existing zoning and covenants — what's possible for development at site • Engage landowners for Landownership scenarios Marketing to master developer (initiate activities for marketing) • Document infrastructure at site — what, where, condition — and create plan for infrastructure improvements • Environmental clean-up plan and associated costs for: former City landfill acreage; city under roads; industrial mill site contamination (landowner) Investigate funding resources — public and private sector, including grants Implement clean-up plan • Develop City -led communications plan to inform City Council and general public to create advocates for mill site redevelopment who are armed with correct information and clear up any misconceptions Multi -channel communication City Council study session • Engage brownfield redevelopment expertise for project management (invite County Commissioners and landowners to partner) • Transportation access improvements • Neighborhood outreach and engagement • Define desired site concept • Marketing strategy to recruit master developer Frame development case including situation of site, Yakima assets, etc. — why developer would want to invest Target developer for business match Developer meetings and marketing at RECON • Site visits and other recruitment activities with master developer prospects Yakima Economic Development Strategic Plan 1 2017 - 2020 Yakima Economic Development Strategic Plan 1 2017 - 2020 0 • Master developer conducts: Market feasibility for desired development concept Financial feasibility for desired concept Determine who will manage master plan and development Marketing/business recruitment (partner with City and YCDA) • Site and engineering analysis • Construction Core Working Group - Mill Site Redevelopment Lead Tea m Resources City of Yakima — City Manager Central Washington Railroad/BNSF City of Yakima — Planning Department, Engineering Department, Economic Development Department, City Attorney Landowners Neighborhood residents and landowners Rural Community Development Resources Yakima County Development Association Yakima Valley Tourism Real estate brokers and developers Washington State Department of Ecology Washington State Department of Transportation Yakima Valley Council of Governments Metrics - Mill Site Redevelopment Process Metrics Outcome Metrics ✓ Landowner partnership ✓ Communications plan developed ✓ Communications plan launched ✓ Active neighborhood involvement ✓ Number of businesses located ✓ Number of jobs and corresponding earnings ✓ Private -sector capital investment ✓ Value of increase in tax base ✓ Economic impact of developments at site ✓ Economic impact to document return on investment of public investments 75 76 PUBLIC AUTHORITY DISTRICT Goal Explore the potential of a public authority district as a tool to support economic development and enhance Yakima's competitiveness to attract and retain businesses. Wny important? A public authority district can be an effective resource for supporting other prioritized Strategic Initiatives of this plan, such as operation of an incubator and/or business development at the Mill Site, and Airport. A variety of benefits can be structured with the mechanism of a public authority district, such as property ownership and development, incentives, investment in infrastructure and funding of dedicated staff for specific development projects. Some public authority districts collect tax to accomplish their mission while others do not. The most famous example of a tax collecting public authority district is the Port of Seattle which operates the SEATAC airport, Maritime Ports, and associated industrial parks in Seattle. The most famous non -tax collecting public authority development is the Pike Place Market Preservation and Development Authority which runs the world-famous Pike Place Market in Seattle. Examples of successful Public Authority Districts around the state that relate to the goals of the City of Yakima's plan include the Wine Incubators at the Port of Walla Walla, the Twisp and Ellensburg Development Authorities business incubators, The Port of Grandview's Certified Shovel Ready Sites and success in recruiting the Wal-Mart Distribution Center, and the Grays Harbor Public Development Authority that developed the Satsop Business Park from a vacated site into a 600 -acre industrial and technology center. Tactics- Public Authority District • Invite Core Working Group to kick-off meeting to review tactics and document specific resources of district benefits • Research the process to establish a public authority district Engage Washington Public Ports Association and Public Development Authorities from across the state for guidance • Investigate Washington State laws as to better understand what is possible and what is not allowed with such districts to determine if such a district can accomplish local goals • With all facts, conduct evaluation of pros and cons for establishment of public authority district • If it is determined that a Public Authority District will enable the City to achieve economic growth that it would not be able to achieve any other way then, Determine the boundaries, scope and specific mission of the Public Authority District Organize campaign around the benefits of the Public Authority District - how that translates into a better community for all residents Conduct baseline research for support Plan for campaign Yakima Economic Development Strategic Plan 1 2017 - 2020 Yakima Economic Development Strategic Plan 1 2017 - 2020 77 Investigate hiring a professional firm that has successfully helped with the creation of other Public Authority Districts in Washington State • With community approval, establish public authority district Core Working Group - Public Authority District Lead Tea m Resources Business community (represented by YCDA, GYCC, HCC of Yakima) City of Yakima — City Manager, City Attorney, Economic Development Department, Airport Greater Yakima Chamber of Commerce Hispanic Chamber of Commerce of Yakima Rural Community Development Resources Yakima County Development Association Yakima Valley Tourism Successful public development authorities Successful port districts in Washington State Washington Public Ports Association Metrics - Public Authority District Process Metrics Outcome Metrics ✓ History compiled ✓ Establishment of public authority district ✓ Complete understanding of what's ✓ Board members sworn in for service possible, pros and cons weighted ✓ Economic impact of public authority ✓ Decision to pursue or not district efforts and programs 78 INCENTIVES Goal Responsibly offer and promote a diverse portfolio of competitive incentives that influence business investment in favor of a Yakima location. Wny important? Incentives alone do not justify a business location decision. However, communities that provide incentives demonstrate they are business friendly, and if used wisely can be effective tools for tipping the scales in favor of the community when all things are equal or making up the difference when a community lags competitively. Incentives are also valuable in "showing the love" to expanding local businesses so that they choose to expand locally instead of expanding or relocating elsewhere. Tactic; Incentives • Gather information on current toolbox of available incentives for Yakima businesses (federal, state, city, SIED, RCDR, utilities, WorkSource, etc.) Develop template to gather consistent and comprehensive information on incentives Gather information on form of incentive (cash, tax credit, services, etc.), eligibility, timing, process to apply/how to access Research and write case studies of Yakima companies who have utilized incentives • Research what Yakima competitors offer for incentives • Research what we can change internally, by public vote and what may not be allowed by law Determine what adjustment could be made to enhance incentive for local employers. This may require legislation for tweak. • Review lost projects as to Yakima's weaknesses to determine if new incentive offerings might impact positively • Research gaps where Yakima falls behind or has higher development and operational costs than competitors • Package City permitting services as incentive service offering (i.e. timing, payment deferrals, ombudsman) Investigate guarantees for turnaround with complete permit submitted Research and write case studies for recent Yakima developments with successful permitting experience • Package Business -to -Business (B -2-B) coupons, deals and other offerings for new business locating in Yakima • Design other incentive offering(s) as allowed by law • Develop and adopt incentive policy to define criteria for projects that align to Yakima's goals • Monitor results of incentives to see if they make an impact toward goals; utilize economic and fiscal impact analysis for award -worthy projects and defendable scrutiny • Promote incentives to local employers to raise awareness and help businesses fully utilize Develop communications and outreach plan Implement communications and outreach plan Yakima Economic Development Strategic Plan 1 2017 - 2020 Yakima Economic Development Strategic Plan 1 2017 - 2020 Post information on City, YCDA and other Core Working Group organizations' websites respectively Match incentives to business needs and situation during Business Retention & Expansion visits Core Working Group - Incentives Lead Yakima County Development Association & City of Yakima — Economic Development Department Team City of Yakima — City Attorney, Planning Department Greater Yakima Chamber of Commerce Hispanic Chamber of Commerce of Yakima Rural Community Development Resources Supporting Investments in Economic Development (SIED) Utilities Resources Washington State Department of Commerce Metrics - Incentives Process Metrics Outcome Metrics ✓ Toolbox of existing incentives complete ✓ Competitor research complete ✓ Capability/law research complete ✓ Lost project review complete ✓ City permitting services package ✓ Business -to -Business (B -2-B) package ✓ Communications plan completed (update websites and outreach to local employers) ✓ Number of businesses (existing and attracted) assisted with incentives ✓ Number of jobs and wages associated with incentivized businesses ✓ Economic impact of incentives applied to businesses 79 80 EDUCATIONAL ALIGNMENT Goal Educational resources aligned to meet the comprehensive current and future needs of employers in Yakima. Why Important? Access to talent is the leading factor for business growth, productivity and ultimately viability. Competitive communities stay on top of matching needs of local employers with skills to advance quality business services and production. With the impending retirement of many Baby Boomers, it is important to fill these openings. By enhancing skills, workers have access to greater opportunities to increase earnings. Yakima also benefits from local training of residents so that youth stay in the community because they are skilled for living -wage jobs. Tactics — Educational Alignment • Assemble education and training providers (possibly leverage Employer Engagement Network of the South Central Workforce Council) Review goal, why important and tactics Review current initiatives in place that may be related to this effort Define who does what by when • Inventory all educational assets for skill enhancements: provider, programs, participants, graduates, placements in local jobs • Document educational institutions outreach and marketing of programs to employers and prospective students • Inventory occupation awareness programs/efforts that expose students to careers in Yakima • Document current and future needs of business for specific workforce skills, due to retirement and job growth areas, via Engagement of business organizations (YCDA, GYCC, HCC, Yakima Valley Tourism, Yakima Valley Human Resources Association) Employer survey Face-to-face meetings with large employers and those with high wages Research of key occupations and corresponding skills of target industries (i.e. what do companies we aim to recruit need) • Analyze needs versus asset inventory to define gaps • Create programs to address gaps • Measure results of programs Yakima Economic Development Strategic Plan 1 2017 - 2020 Yakima Economic Development Strategic Plan 1 2017 - 2020 Core Working Group Educational Alignment Lead Tea m Resources Yakima County Development Association Central Washington University Heritage University Opportunities Industrialization Center Pacific Northwest University of Health Sciences Perry Technical Institute South Central Workforce Council Superintendents of East Valley, West Wally and Yakima School Districts Unions (i.e. Operating Engineers Local Union #370, United Association of Plumbers & Steamfitters Local 598) Yakima Valley College Yakima Valley Human Resources Association Yakima Valley Technical Skills Center (YV-Tech) Business/local employers Metrics — Educational Alignment Process Metrics Outcome Metrics ✓ Inventory of educational assets complete ✓ Inventory of occupational awareness programs complete ✓ Business needs documented ✓ Gaps defined ✓ New programs developed and funded Comprehensive package of skill enhancement offerings utilized for marketing to prospective businesses Program graduates/participants Job placement rates in Yakima Increased earnings 81 82 AIR SERVICE Goal Sustain and increase commercial airline service at the Yakima Airport (YKM). Why Important? To competitively meet the travel needs of business and residents, Yakima needs to continue efforts to expand air services — both frequency and additional destinations. Quality air service is critical to growing both the economy and local tourism. An active airport generates funds for airport operations, maintenance and capital expenditures. On top of these benefits, high quality and expanding air service helps Yakima make its mark on the national map as a significant regional center. Tactics — Air Service • Formalize airport sales team • Research how competitors are organized, funding sources, and marketing strategies to support/expand commercial air service • Investigate new funding sources to attract and retain commercial air service • Nurture existing partnerships (Alaska Airlines, Horizon Air, Virgin America) • Consider incentive programs and package for targeting new destinations/carriers • Continue FLY YKM marketing plan Core Working Group Air Service Lead Tea m Resources City of Yakima — Airport Air Service Development & Consulting: AirPlanners, LLC City of Yakima — Economic Development Department City of Union Gap Greater Yakima Chamber of Commerce Hispanic Chamber of Commerce of Yakima Yakima Valley Tourism Federal Aviation Administration Metrics - Air Service Process Metrics Outcome Metrics ✓ Airport sales team organized ✓ Competitor research completed ✓ Fund sources investigated ✓ Frequency of outreach with existing partners ✓ Marketing plan implementation metrics ✓ Passenger growth ✓ Load factors ✓ Number of new flights ✓ Number of new destinations ✓ Increase in airport funds Yakima Economic Development Strategic Plan 1 2017 - 2020 83 CONVENTION CENTER EXPANSION Yakima Economic Development Strategic Plan 1 2017 - 2020 co Goal Expand the Yakima Convention Center to host targeted groups with world-class amenities. Why Important? Attracting conventions and related convention center users is a way to entice a high volume of visitors to Yakima, which in turns generates new revenues and taxes for the city. By attending a convention, it may be their first visit to Yakima, spurring subsequent visits or even a business relocation. A vibrant convention center campus and headquarter hotel is an important cornerstone of a comprehensive tourism strategy. Yakima's convention center currently trails competitors in the Pacific Northwest region. Wenatchee, Tri -Cities and Spokane are making significant investment in convention and lodging facilities. In addition to remaining competitive, a vibrant convention center facility supports tourism growth as well as hosting local employer meetings and educational meetings and conferences. Tactic: Convention Center Expansion • Share existing information and research for convention center expansion • Define boundaries • Design architect for schematics, square feet and layout • Document options for Yakima Convention Center expansion • Evaluate pros and cons of options • Develop communications strategy for project • Seek buy -in from partners • Neighborhood engagement • Feasibility study and economic impact of expansion • Investigate and pursue funding resources, including state legislative priority • Development plan • Recruit hotel developer • Hire developer/construction firm • Transition plan during construction into full expansion • Retail recruitment • Relocate visitor center Core Working Group - Convention Center Expansion Lead Tea m Resources Yakima Valley Tourism Adjoining property owners City of Yakima Downtown Association of Yakima Greater Yakima Chamber of Commerce Hispanic Chamber of Commerce of Yakima Public Facilities District Yakima County Development Association Yakima Downtown Association Neighborhood State Legislators Metrics -- Convention Center Expansion _Process Metrics Outcome Metrics ✓ Options evaluated ✓ Feasibility study on options ✓ Expansion plan developed and approved ✓ Funding procured ✓ RFP/RFQ let for developer ✓ Developer hired ✓ Expansion completed ✓ Private sector investment — hotel, retailer ✓ Number of events booked ✓ Number of hotel bookings ✓ Economic impact of events hosted ✓ Sales tax generated 84 Yakima Economic Development Strategic Plan 1 2017 - 2020 Yakima Economic Development Strategic Plan 1 2017 - 2020 0 85 B. Traded -sector Business & Quality Employment Growth To shape a sustainable economy, proactive efforts are necessary. Successful communities don't wait for businesses to show up, they organize a strong business case to meet their needs and reach out to them — be it an entrepreneur starting up a new business endeavor or a successful business that could grow successfully in Yakima. INCUBATOR Goal Establish a high-quality, technical assistance incubator to boost effective business start-ups in Yakima. Why Important? An incubator is a resource for entrepreneurs that helps to lower the barrier to entry for business start- ups. Locally "grown" businesses are more likely to stay and grow where they originate, thus providing an avenue for job creation that compliments local business expansion and new business attraction efforts. An incubator could also become a destination asset in Yakima, depending on the goods and services produced by target occupants. Incubator • Research and tour example incubators • Define scope of incubator/Mercado: commercial kitchen, brewery, winery, public market, tie to targets • Define potential locations and design • Business plan for incubator model — including management and technical assistance responsibilities Target occupants Needs of target occupants Equipment provided (i.e. commercial kitchen) Technical assistance provided Protocols for occupants — eligibility, requirements, length of stay, etc. Application criteria and process for prospective occupants Budget for defined scope • Feasibility study for defined scope • Funding Identify resources (i.e. Economic Development Administration, CERB, SIED) Pursue grants that align with business plan and incubator model • Develop physical space • Hire incubator manager • Market and solicit occupants • Provide technical assistance to occupants • Graduate successful companies • Measure economic impact of results Core Working Group - Incubator Lead Tea m Resources City of Yakima — Economic Development Department City of Yakima — City Manager Downtown Association of Yakima Greater Yakima Chamber of Commerce Hispanic Chamber of Commerce of Yakima Rural Community Development Resources Small Business Development Center State Legislators US Economic Development Administration Metrics - Incubator _Process Metrics Outcome Metrics ✓ Scope defined ✓ Location and design defined ✓ Business plan completed ✓ Feasibility plan completed ✓ Funding secured ✓ Incubator manager hired ✓ Incubator built out for occupancy ✓ Number of incubator business occupants and corresponding job counts ✓ Number of graduating companies ✓ Economic impact of occupants and graduates 86 Yakima Economic Development Strategic Plan 1 2017 - 2020 AIRPORT BUSINESS GROWTH Yakima Economic Development Strategic Plan 1 2017 - 2020 87 Goal Locate a comprehensive supply chain of traded -sector aviation companies and suppliers to prioritized sites adjacent to the Yakima Airport. Why important? Yakima has limited sites to house traded -sector businesses providing quality jobs. Sites near the Yakima Airport — some with direct access to runways — are even more rare, yet they offer a compelling benefit to aircraft and aerospace manufacturers seeking to test their products. Recruiting manufacturers provide more economic benefit to Yakima than hangers and other types of warehousing at the airport. With the expansion of Cub Crafters, there is opportunity to further enhance Yakima's retention magnetism by locating supporting suppliers for Cub Crafters and other related businesses. Building out a full aircraft cluster enhances their operations and is a strategic use of land, training resources and other key components of Yakima's business case. Tactic: Airport Business Growth • Interview local aircraft and aerospace employers to Document their respective supply chain Identify target companies (suppliers) Learn what events and where they connect to other industry -related companies Write cases studies on local aircraft/aerospace employers to demonstrate how they are succeeding in Yakima • Define needs/requirements and priority location factors of target companies • Gather corresponding data and build business case as to why Yakima is the location of choice for aircraft manufacturers and suppliers Also, includes potential customer base in region and logistics to existing customers from Yakima location Research source locations of target companies and prepare cost comparisons to Yakima - based operations • Develop outreach plan to meet with target businesses, involving local businesses for introductions • Leverage Washington State Department of Commerce marketing to aircraft and aerospace manufacturers, including relevant industry conferences and tradeshows • Leverage relevant Governor Missions Core Working Group - Airport Business Growth Lead City of Yakima — Economic Development Department, Airport Team City of Yakima — City Manager City of Union Gap Cub Crafters Marquis Development Triumph Actuation Systems - Yakima Yakima County Development Association Resources Aerospace Futures Alliance Inland Northwest Aerospace Consortium Federal Aviation Administration Washington State Department of Commerce Metrics — Airport Business Growth _Process Metrics Outcome Metrics ✓ Target list ✓ Business case, including case studies, completed ✓ Outreach plan completed ✓ Number of businesses contacted ✓ Number of proposals sent ✓ Number of site visits by target companies ✓ Number of business locations, corresponding jobs, wages, capital investment ✓ Economic impact of recruitments 88 Yakima Economic Development Strategic Plan 1 2017 - 2020 89 RECRUIT CLUSTER INDUSTRIES Yakima Economic Development Strategic Plan 1 2017 - 2020 0 Goal Locate traded -sector businesses that compliment yet diversify Yakima's economic base. Why Important? Traded -sector businesses produce and sell products and services outside of the area, thus bringing wealth to Yakima and hiring people to living -wage, quality jobs. Plus, with a focused effort to target industries that diversify our local economy we will achieve more stability through economic cycles. Tactic: Recruit Cluster Industries • Determine target industries that are growing nationally, pay above Yakima's median earnings, and fit with Yakima's capabilities to serve competitively • Define needs/requirements and priority location factors of target industries • Gather corresponding data and build business case as to why Yakima is the location of choice for each target industry • Write cases studies on local traded -sector businesses of target industries to demonstrate how they are succeeding in Yakima • Develop outreach plan to meet with businesses of target industries Engage lead generation firm • Leverage Washington State Department of Commerce's marketing efforts Core Working Group - Recruit Cluster Industries Lead Yakima County Development Association Team City of Yakima — Economic Development Department Resources Aerospace Futures Alliance City of Yakima — Planning & Public Works Commercial real estate developers, brokers and landowners Inland Northwest Aerospace Consortium Utilities Washington State Department of Commerce Metrics - Recruit Cluster Industries Process Metrics Outcome Metrics ✓ Target industries defined ✓ Business case, including case studies, completed ✓ Outreach plan ✓ Number of businesses contacted ✓ Number of proposals sent ✓ Number of site visits by target companies ✓ Number of business locations, corresponding jobs, wages, capital investment ✓ Economic impact of recruitments 90 Yakima Economic Development Strategic Plan 1 2017 - 2020 0 Yakima Economic Development Strategic Plan 1 2017 - 2020 0 91 C. Community Pride Community pride initiatives complement economic development marketing and talent attraction/retention — people wanting to live and work in Yakima. CENTRO DE LA RAZA Goal Establish a Latino cultural center (Centro de la Raza) to honor the diverse cultural assets of the Yakima community. Why Important? This inclusive venue could serve as a destination draw for visitors and symbol of pride for residents. Not only would this facility enhance quality of life, it provides an opportunity to educate youth on Yakima's diverse cultural history. Tactic: Centro de la Raza • Invite participation and launch Working Group • Research and tour example centers • Define scope of project (events, showcase, etc.) • Conduct feasibility study based on defined scope of project Determine location options Investigate funding resources • Develop business plan Diverse board Determine management and partners Operations Revenue streams Staffing • Procure funds • Engage contractors • Construction • Marketing • Management of facility Core Working Group - Centro de la Rai. Lead Tea m Resources Hispanic Chamber of Commerce of Yakima City of Yakima Movimiento Estudiantil Chicano de Aztlan (MEChA) Rural Community Development Resources Sally Tonkins Philippine community representatives Yakima Community Foundation Yakima Nation Yakima Valley Museum Metrics — Centro de la Raza Process Metrics Outcome Metrics ✓ Research completed ✓ Project scope defined ✓ Feasibility study completed ✓ Business plan completed ✓ Funding procured ✓ Contractor hired ✓ Centro de la Raza built ✓ Number of visitors 92 Yakima Economic Development Strategic Plan 1 2017 - 2020 93 IMAGE CAMPAIGN Yakima Economic Development Strategic Plan 1 2017 - 2020 0 Goal Enhance local pride in community and foster positive "buzz" about Yakima. Why Important? With a positive perception and experience in Yakima, people will come to visit or live in Yakima and choose to stay. If residents are vested they will promote and invest in the community. Yakima Valley Tourism, Yakima County Development Association and both Chambers of Commerce do an extraordinary job of marketing Yakima externally. There is an opportunity to leverage the vibrant and positive external marketing to residents and local businesses so that they play an important role in speaking positively about the community. i'actic: Image Campaig► • Invite participation and launch Working Group — engage local media to partner • Research to understand current Yakima brand and marketing programs • Research what other communities are doing/have done to increase pride locally • Conduct local perception survey/research to document baseline of perceptions • Develop internal image/pride campaign focused on positive stories and progress being made Potential mediums/approaches: authored news column, television interviews, editorial board meetings, speaker's bureau, social media, student video contests, picture contests Possibly phase campaign in order to get into action sooner Investigate and procure funding for implementation (as needed) • Engage wide range of partners to carry out campaign • Monitor results via subsequent surveys to measure change in perceptions Core Working Group - image Campaigr Lead Tea m Resources Greater Yakima Chamber of Commerce & Hispanic Chamber of Commerce of Yakima City of Yakima — Communications Department I r Yakima Local television stations: KAPP, KNDO/KNDU, KIMA, FOX 41, KCYU, Grupo Hispanavision, Univision Yakima Advertising Federation Yakima Herald Yakima Valley Business Times Yakima Valley Tourism Young Leaders of Yakima/United Way Breweries/craft beverage businesses Yakima Arts Commission Yakima area service groups Metrics - Image Campaign Process Metrics ✓ Research of current brand/marketing ✓ Perception survey completed ✓ Campaign developed ✓ Funding procured Outcome Metrics ✓ Social media analytics ✓ Change in resident perception of Yakima image ✓ Change in external perception of Yakima 94 Yakima Economic Development Strategic Plan 1 2017 - 2020 Yakima Economic Development Strategic Plan 1 2017 - 2020 95 IV. Staying on Track for Results With a clear purpose and work laid out in Strategic Initiatives, success will only come from diligent commit to implementation. This plan is a community -wide, coordinated economic development effort and requires thoughtful approach and commitment from diverse stakeholders and partners to sustain implementation. Many of the initiatives are multi-year efforts before major outcomes are evident. The Steering Committee delineated principles, structure and communications for accountable implementation that extends beyond City Council terms for continuity across the 2017 — 2020 plan timeframe. A. Principles to Follow in Pursuit of Purpose The following principles defined by the Steering Committee must absolutely be respected to unleash successful implementation of this Economic Development Strategic Plan for Yakima: • Establish and define clear communication model for desired outcomes (see below) Educate stakeholders involved for buy -in, shared vision and leadership • Be inclusive and engage broader community by communicating why we are doing what we are doing • Carry out consistent and positive messaging • Follow a timeline with benchmarks Identify research sources to accomplish goals Do our homework Listen and learn from doubters B. Accountable Implementation The design for accountable implementation of this plan is organized for an enduring effort to achieve our purpose. Our results, along the way as well as outcomes, will be consistently communicated in line with principles for successful implementation. STRUCTURE The Lead for each Strategic Initiative Working Group will participate on the Yakima Economic Growth Team, coordinated and led by the City Economic Development Manager. 0 Each Lead will: • Develop implementation timelines with benchmarks • Report progress of Strategic Initiatives to Yakima Economic Growth Team • Ask for assistance/feedback from the Yakima Economic Growth Team • Track metrics for Strategic Initiative • Suggest adjustments to plan as necessary based on findings, results, etc. The purpose of the Yakima Economic Growth Team is to hold each other accountable and lend support and cross-over, where appropriate, on related initiatives. 96 The Yakima Economic Growth Team will report to the City of Yakima Economic Development Committee who ultimately reports to Yakima's City Council. COMMUNICATIONS To enhance support for strategic initiatives and community pride generated from accomplishments, it is important to communicate progress as well as results or outcomes of plan implementation. Tactic :ommunications • Create webpage on City website dedicated to the Yakima Economic Development Strategic Plan (link partner websites). Present case studies on Yakima businesses, City services, business resources. Publish updates on implementation progress of Yakima Economic Development Strategic Plan. • Publish Yakima Economic Indicators Dashboard on City website (link to partner websites) documenting economic indicators such as job growth, per capita income, unemployment levels, poverty rates, property values, property and sales taxes collected, etc. To set context, trend data over time and present in comparison to competitors or aspirational communities. • Provide updates in City newsletter and coordinate to provide content with partner organizations' newsletters to their membership. • Ongoing, prepare news releases and conduct interviews with media as benchmarks achieved (i.e. process metrics) that articulate what and why the benchmark leads to success. • Offer to author Economic Development column for Yakima Herald. Present case studies on Yakima businesses, City services, business resources. Publish updates on implementation progress of the Yakima Economic Development Strategic Plan. Yakima Economic Development Strategic Plan 1 2017 - 2020 Acknowledgements A wide array of committed and enthusiastic community leaders provided input and worked collaboratively to develop this Economic Development Strategic Plan for Yakima. YAKIMA CITY COUNCIL Dulce Gutierrez District 1 Bill Lover District 4 Holly Cousens District 7 Avina Gutierrez District 2 Kathy Coffey District 5 — Mayor 97 Carmen Mendez District 3 — Assistant Mayor Maureen Adkison District 6 YAKIMA ECONOMIC DEVELOPMENT STRATEGIC PLAN STEERING COMMITTEE Kathy Coffey, District 5 — Mayor City of Yakima Holly Cousens, District 7 City of Yakima Colleda Monick, Economic Dev. Assistant City of Yakima Luz Bazan Gutierrez, Secretary Hispanic Chamber of Commerce of Yakima John Cooper, President & CEO Yakima Valley Tourism Avina Gutierrez, District 2 City of Yakima Cliff Moore, City Manager City of Yakima Cally Price, Assistant to City Manager City of Yakima Maria Rodriguez, Executive Director Rural Community Development Resources PARTICIPANTS IN COMMUNITY ASSET SITE VISIT Yakima Economic Development Strategic Plan 1 2017 - 2020 Jeff Gaskell, Operations Manager Adventurer LP Dave Brown, Water/Irrigation Division Mgr. City of Yakima Glenn Denman, Building Official Supervising Code Inspector City of Yakima Charlie Robin, CEO The Capitol Theater Yakima Joseph Morrier, President & CEO JEM Development Real Estate Inc. Erin Fishburn, Director of Institutional Effectiveness & Advancement Perry Technical Institute Patrick Baldoz, Director South Central Workforce Council Joe Schmitt, Marketing & Dev. Director Yakima County Development Association Craig Dwight, Director Yakima Valley Technical Skills Center Maureen Adkison, District 6 City of Yakima Sean Hawkins, Economic Dev. Manager City of Yakima Verlynn Best, CEO/President Greater Yakima Chamber of Commerce Jonathan Smith, President/CEO Yakima County Development Association Meghann Quinn, President Bale Breaker Brewing Company Joseph Calhoun, Senior Planner City of Yakima Jeff Peters, Supervising Planner City of Yakima Thane Phelan, Vice President & Communications/Marketing Greater Yakima Chamber Bob Gerst, Vice President Human Resources John L. Haas, Inc. Mike Wright, Plant Manager Quanex Building Products Tommy Hanses, Operations Manager Washington Fruit & Produce Company Duncan MacLeod, Executive Director Yakima Makers Space Carolyn Belles, Permit Project Coordinator City of Yakima Joan Davenport, AICP, Planning Manager City of Yakima Mike Price, Wastewater Manager City of Yakima Russ Roberts, CCIM Heritage Moultray Christina Cote, President Perry Technical Institute Linda Johnson, Certified Business Advisor Small Business Development Center Jean Brown, Business Development Director Yakima County Development Association Paulette Lopez, Dean of Workforce Education Division Yakima Valley Community College 98 The Intersection of Site Selection & Economic Development The Yakima Economic Development Strategic Plan was developed with the assistance and facilitation of TadZo. TadZo is an economic development and site selection consulting firm led by Allison Larsen. Businesses and communities want essentially the same things: economic vitality, wealth creation, quality place and environment. TadZo works with communities to achieve these outcomes. TadZo also assist companies to identify communities with these attributes that support business strategy and competitive advantage. Allison Larsen, CEcD Principal TadZo www.TadZoConsulting.com 509.972.0833 allison@TadzoConsulting.com