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HomeMy WebLinkAbout022218 EDC packetCouncil Economic Development Committee Members: Councilmember Coffey Councilmember White Councilmember Cousens Second Floor Conference Room Yakima City Hall Thursday, February 22, 2018 1:30 p.m. Staff: Others: Ana Cortez -Steiner, Assistant City Manager Sean Hawkins and Rob Peterson Joan Davenport, Director of Community Development Agenda 1. Board Appointed Reports/Discussion: a) Yakima County Development Association — White b) Greater Yakima Chamber of Commerce — White c) Lodging Tax Advisory Committee — Coffey d) Public Facilities District - Coffey e) Supporting Investments in Economic Diversification Board — Coffey f) Yakima Valley Tourism- Coffey g) Plaza Ad -Hoc Committee- White/Coffey 2. Minute Approval a. Review Minutes from February 1, 2018 Meeting' 3. Discussions a. Update on partnerships with YVC, Entrust, 100 Jobs and other work force development programs b. March 2018 Agenda: 2017-2020 Economic Development Report I. Progress update from Center for Business Development II. Progress update from Greater Yakima Chamber of Commerce III. Progress update from New Vision IV. Progress update from Yakima Hispanic Chamber of Commerce V. Progress update from Yakima Valley Tourism VI. Progress update from YKM VII. Progress update from City of Yakima/ Economic Development c. Discussion about changes for the 2017-2020 Economic Development Plan. Clarity for partners and staff. d. MRSC's Introduction to Economic Development and Mississippi State Community Economic Development 4. Audience Participation Council Economic Development Committee Councilmembers: Councilmember Coffey Councilmember Cousens Councilmember White 2"d Floor Conference Room City Hall February 1, 2018 1:30 p.m. Staff: Ana Cortez, Assistant City Manager CaIly Price, Asst. to the City Manager Executive Minutes Coffey called the meeting to order. Others: Joe Mann Maria Rodriguez Joe Schmitt John Cooper Luz Bazan Gutierrez Tony Courcy 1. Election of Chair Cousens nominated Coffey as the committee Chair. It was committee consensus that Coffey would continue as Chair. 2. Establish Committee meeting date and time Committee members discussed the meeting date and time and agreed to leave it as it is currently scheduled — 4th Thursday of the month at 1:30 p.m. 3. Discuss approach for providing Board reports Cortez asked for Committee direction on how reports and updates should be shared with members. Committee members agreed that having a list of boards and name of representative would be appreciated. Representatives should be prepared to give updates at the monthly committee meeting. 4. Board appointed reports a) Choose Yakima Valley — White Joe Schmitt distributed year end statistics for Yakima County and highlighted the numbers specific to Yakima. Cortez will work with Jonathan Smith and schedule a presentation to the full Council. b) Greater Yakima Chamber of Commerce — White No report — Council unable to attend last meeting c) Lodging Tax Advisory Committee — Coffey Coffey gave a short background on how the lodging tax is collected and distributed. d) Public Facilities District — Coffey Cooper reported that the Public Facilities District is a government entity that works on operation and development management of the Convention Center. The state refunds a portion of the local sales tax collected in the community to approved facilities in the community. In order to remain competitive in the convention market, the Convention Center needs to consider a future expansion and a headquarter hotel. Current bonds will be paid off in 2026. e) Supporting Investments in Economic Development Board — Coffey SIED update was given as part of the Choose Yakima Valley presentation. 5. Minute approval The December 7 minutes were reviewed and approved as presented. 6. Discussions a) Should plaza advisory committee be included in board appointed reports? Committee members discussed whether or not the Plaza Advisory Committee should be listed under the economic development board appointed reports agenda item. Committee members agreed that yes, the Plaza Advisory Committee should be listed under the board appointed reports on future agendas. b) Introduction/Revisiting economic development plan. Cortez reviewed the economic development plan with committee members and discussed if it needed to be updated or changed or if staff should continue using it as a roadmap. Cortez distributed handouts and articles related to the mill site, port districts, media relations, and new business ventures. There will be updates on all economic development objectives at the next meeting. Gutierrez stated that community members and staff spent a great deal of time on the economic development plan and would like to see it keep moving forward. c) February 2018 agenda Report from Choose Yakima Valley Report from Center for Business Development Report from Yakima Chamber of Commerce Report from Yakima Hispanic Chamber Report from Yakima Valley Tourism Report from Yakima Airport Report from Economic Development 7. Audience participation Kathy Coffey, Chair MRSC Local Government Success Economic Development in Washington State: An Introduction This page is an introduction to the series of MRSC pages on Economic Development in Washington state and sets the context for economic development in this state. What is Economic Development? Economic development should not be an isolated activity taking place within the borders of a jurisdiction. It is an activity that is regional or county -wide, and sometimes even broader. Successful economic development activities are carried out through partnerships with other governments, associate development organizations, and local business groups such as the chamber of commerce. Economic development is better described than defined. In a presentation to the city attorneys' association, the former director of the then -Department of Community Development, Richard Thompson, described economic development as job creation, job retention, job training programs, public and private capital investments, and business and community capacity -building to allow the business or community to do the job themselves. The term economic development is not statutorily defined, although various statutes describe its goals and broad scope while providing authority for certain economic activities. For example, when setting up the state's Economic Development Tax Authority, the legislature stated that economic development is essential to the health, safety, and welfare of all Washington citizens by broadening and strengthening state and local tax bases, by providing meaningful employment opportunities and thereby enhancing the quality of life. The Community Economic Revitalization Board (CERB) fosters economic development through the stimulation of investment and job opportunities and the retention of sustainable existing employment for the general welfare of the inhabitants of the state. The Growth Management Act in RCW 36.70A.020(5) lists 13 planning goals, one of which is economic development: Encourage economic development throughout the state that is consistent with adopted comprehensive plans; promote economic opportunity for all citizens of the state, especially for unemployed and disadvantaged persons; and encourage growth in areas experiencing insufficient economic growth, all within the capacities of 1 the state's natural resources and local public facilities. Most local government economic development programs cite the above goal. Cities and counties undertake a variety of activities that relate to the fostering of economic development in their regions. Most typical are tourism, facilitating industrial development through land use policies, and creating the infrastructure framework that supports economic development activities. All activities must be for a proper public purpose and not in violation of the state's constitutional restrictions on the giving of money or the lending of credit. A list of incentives provided to new and expanding businesses by economic development organizations illustrate what local governments can do to foster economic development. Authority for Local Economic Development Activities Washington local governments are very limited as to what they may undertake in the area of economic development. For cities, the statutory provision is in RCW 35.21.703. The authority for counties to engage in economic development activities is RCW 36.01.085. Neither statute defines "economic development." The original intent of these statutes was to enable cities and counties to join and pay dues to economic development councils and consortiums. Limitations on Economic Development Due to strict constitutional limitations, cities and counties in Washington State have very few avenues open for direct participation in private economic development projects. There are potential legal issues regarding the loaning or gifting of public funds. Under Article 8, Section 7 of the Washington State Constitution, a city or county may not directly give or loan money to private businesses for economic development. The State of Washington is one of the more restrictive in the nation in regard to how public funds may be utilized to attract private investment. Specifically, Article 8, Section 7 of the state constitution provides: No county, city, town or other municipal corporation shall hereafter give any money, property, or loan its money, or credit to or in aid of any individual, association, company or corporation, except for the necessary support of the poor and infirm. This constitutional provision has been interpreted in numerous cases in this state and generally has been interpreted very narrowly in regard to allowable uses of public funds to aid private businesses or corporations. A city or county does not have direct authority to construct and operate industrial and commercial facilities, or to pay city funds out for the purpose of attracting private industrial development, neither does the city have indirect authority to pay an industrial development council (not a municipal corporation) for performing those functions [ Morgan Jacobson and James Pharris, MRSC Information Bulletin No. 432 (1985)]. In addition, a city's general funds cannot be expended for "industrial development projects." See Hoguey Port of Seattle, 55 Wn.2d 153 (1959); art. XXXII, § 1, Washington State Constitution. What Economic Development Activities Can Be Undertaken by Cities, Towns and Counties? • D ► -.. -r. .n.i•.- -■ golf -r 1, -r•- .r• •.••s r - r.• Hugh Spitzer, Foster Pepper PLLC, 2006 WSAMA fall conference. • Cities and Economic Development Programs::Are Cities in the 'Business Business" - Should They Be? by James K. Pharris, Senior Assistant Attorney General, State of Washington, Information Bulletin No. 444 (1987), Legal Notes, Proceedings of October 12-15,1986 (Available through MRSC Library Loar3) • City Involvement in Economic Development by Don L. Hogaboam, Senior Assistant City Attorney, City of Tacoma Information Bulletin No. 489 (1995), Legal Notes, Proceedings of April 26-28,1995 • Efficient and Effective Uses of Public Corporations/PDA's, by B. Gerald Johnson, Attorney, Preston Thorgrimson Shidler Gates & Ellis, Information Bulletin No. 473 (1992), Legal Notes, Proceedings of June 20-21,1991 (Available through MRSC Library Loan) • Washington State Department of Commerce Growing the Economy, Last Modified: August 17, 2017 Community Economic Development: Key Concepts Community economic development (CED) is a crucial process for any com- munity, regardless of size or location. With globalization continuing to impact com- munities and the digital age in full swing, understanding what affects CED is critical. Community economic development, when implemented correctly, has the potential to help communities not only remain compet- itive but, more importantly, adapt to a very complex and dynamic situation. This publication, the first in a com- munity economic development series, provides key concepts and definitions related to the CED process. These describe what this process includes, what affects it, and how it can be unleashed in communi- ties. In practice, community and economic development go hand-in-hand and dis- tinguishing them is somewhat difficult; in theory, however, it is easier and appropri- ate to do so. Key Concepts & Definitions The concepts covered here are not intended to be comprehensive, but they should provide a broad understanding of the CED process. Before we discuss these concepts, it is important to understand a key difference between growth and develop- ment. Many people equate these two terms, which can have negative consequences for the CED process. Growth is a quantitative increase, while development is a change aimed at a particular goal (Robinson & Green, 2010). In other words, growth is more about quantity, while development is more about quality. As a community leader, do you want your community to grow or do you want it to develop? Answering this question is critical before attempting to implement a CED process in your community. Let's begin with a basic question: What is a community? The definition of community is usually taken for granted but not truly understood. As an example, ask several of your colleagues how they would define community, and you will see that their definitions vary widely. So what is a community? A community is a geographically defined place where people interact (Robinson & Green, 2010). But a community is not only the physical space where people interact; it also provides important activities and functions that serve its residents. These community functions range from economic (provides goods and services) to socialization (the process through which the community transmits its knowledge, values, and behavior patterns to its residents) to social control (the pro- cess through which a group influences the behavior of its members to conform to its norms) to social participation (provides a venue through which residents can partici- pate in their communities) to mutual sup- port (provides help and support in times of need) (Warren, 1987). These functions are not carried out in a vacuum; they rely on institutions—defined as rules, including informal norms, and or- ganizations that coordinate human behav- MISSISSIPPI STATE UNIVERSITY.. EXTENSION for (Anglin, 2011). Institutions in a community vary and include family, economic, education, political/ government, faith-based/religious, and associations. For example, some communities may have stronger political institutions and weaker education -related institutions. This institutional diversity affects hori- zontal and vertical linkages in the community. Hori- zontal links refer to connections between local institu- tions (such as a local nonprofit with the local school), while vertical links refer to connections between local institutions and external (state, regional, or federal) resources (such as the local economic development organization with a statewide or regional economic development agency). The catch here is that focusing only on vertical links can compromise community autonomy—relying almost solely on external orga- nizations to move the community forward. A more balanced approach uses horizontal links to identify community priorities and issues and then vertical links to secure external resources and expertise. In summary, linkages are the capacity of communi- ties to carry out functions that depend on the nature and strength of institutions (Robinson & Green, 2010). The question now becomes: What is community devel- opment? Though multiple definitions exist, this is a good community development definition: a group of people in a locality initiating a social action pro- cess—i.e., planned intervention—to change their economic, social, cultural, and/or environmental situation (Christenson & Robinson, 1989) If you have a hard time remembering such a long definition, remember these key words: people, locality, planned, change, and situation. Community develop- ment is all about people planning to change a specific situa- tion in their communities. To effectively identify solutions and deploy resources and programs, multiple players, including but not limited to local residents, private foundations, government officials, and community development corporations, need to be involved in the process. Community Development versus Economic Development Now that we have discussed key concepts and defined community development, we need to under- stand what economic development is. This is a good definition of economic development: a process that influences growth and restructuring of an economy to enhance the economic well-being of a community (International Economic Development Council) Regardless of the definition used, economic de- velopment is often associated with two objectives: (1) creation of jobs and wealth and (2) improvement of quality of life (International Economic Development Council). The first objective typically leads to the sec- ond, but, generally, the focus is on the business aspects of communities. So the difference between community and economic development boils down to one ap- proach (community development) focusing on broad- er community issues including but broader than jobs and businesses, while the other approach (economic devel- opment) focuses mostly on jobs and businesses. Both are processes taking place in a community or region. These concepts are summarized in Table 1. CED and Sustainability Make no mistake: community and economic de- velopment are intertwined. It is important to distin- guish them theoretically, but, in reality, they depend on one another to make a community sustainable. In other words, CED allows residents to mobilize and build assets to improve their quality of life in a sustainable way. If too much effort is placed on either at the expense of the other, the community will struggle and will not be sustainable. In this particular context, sustainability refers to engaging in practices that result in availabil- ity of resources, services, and quality of life for future generations. CED is a complex process. Multiple moving parts and players are involved, and it may take years to bear fruit. However, with committed leaders and a clear vision of where the community wants and needs to be, CED can move communities forward in a comprehen- sive way. Community challenges and opportunities emerge together; it is up to the community to decide if it will focus on the challenges or on the opportunities. CED is a process that allows a community to focus on both but, more importantly, to adapt to challenges and opportunities. The next community economic development pub- lication will talk about general community develop- ment approaches. Table 1. CED key concepts and definitions. Key concept Definition Growth Quantitative increase in size Development Quality change aimed at a particular goal Community Geographically defined place where people interact Functions Responsibilities and activities inherent in a community Institutions Rules, including informal norms, and organizations that coordinate human behavior Linkages Capacity of communities to carry out functions depending on strength of institutions; these can be vertical and horizontal Community development People in a defined location planning to change a situation Economic development Process that influences growth to enhance well-being Community economic development (CED) Process that allows residents to mobilize and build assets to improve their quality of life in a sustainable way References Anglin, R. V. (2011). Promoting Sustainable Local and Community Economic Development. CRC Press. Christenson, J. A., & Robinson, J. W. (1989). Commu- nity Development in Perspective. Ames: Iowa State University Press. International Economic Development Council. (n.d.). Economic Development Reference Guide. Interna- tional Economic Development Council. Retrieved from http:/ /www.iedconline.org/clientuploads/ Downloads / IEDC_ED_Reference_Guid e.p df Robinson, J. W., & Green, G. P. (2010). Introduction to Community Development: Theory, Practice, and Service -Learning. SAGE Publications. Warren, R. (1987). The Community in America (3rd ed.). UPA. Publication 2901 (POD -08-15) By Roberto Gallardo, PhD, Associate Extension Professor, Extension Center for Technology Outreach. MISSISSIPPI STATE UNI V ERSITY,. EXTENSION Copyright 2015 by Mississippi State University. All rights reserved. This publication tnay be copied and distrib- uted without alteration for nonprofit educational purposes provided that credit is given to the Mississippi State University Extension Service. Produced by Agricultural Communications. We are an equal opportunity employer, and all qualified applicants will receive consideration for em- ployment without regard to race, color, religion, sex, national origin, disability status, protected veteran statues, or any other characteristic protected by law. Extension Service of Mississippi State University, cooperating with U.S. Department of Agriculture. Published in furtherance of Acts of Congress, May 8 and June 30, 1914. GARY B. JACKSON, Director