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?
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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-
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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.
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