HomeMy WebLinkAbout032218 EDC packetCouncil Economic Development Committee
Members:
Councilmember Coffey
Councilmember Cousens
Councilmember White
1.
2.
Second Floor Conference Room
Yakima City Hall
Thursday, March 22, 2018
1:30 p.m.
Staff:
Ana Cortez -Steiner,
Assistant City Manager
Joseph Calhoun, Planning Manager
Scott Schafer, Public Works Director
John Carney, Information Systems Manager
Others:
Agenda
Minute Approval
a. Review Minutes from February 22, 2018 meeting
Discussions
a.
b.
c.
d.
e.
f.
Update on partnerships with YVC, Entrust, 100 Jobs and other work force development
programs
Economic Development Updates
Dig Once / WIFI
Arts District
Farmers Market
Truck Routes
3. Economic Development reference materials, news articles, etc.
a. Yakima MSA — Labor Area Summary January 2018
4. Future agenda items
a. Port District — Kittitas County vote (April)
5. Audience Participation
Council Economic Development
Committee
2nd Floor Conference Room
City Hall
February 22, 2018
1:30 p.m.
Members: Staff: Others:
Councilmember Coffey Ana Cortez, Assistant City Manager John Baule
Councilmember White Sean Hawkins, Economic Development Roger Wentz
Manager Maria Rodriguez
Rob Peterson, Airport Director Luz Gutierrez
Cally Price, Assistant to the City Manager Jonathan Smith
Daniel Flores
Executive Minutes
Coffey called the meeting to order.
1. Board Appointed Reports/Discussion Items:
There was discussion about the frequency of Board appointed reports/discussions. Coffey
motioned that quarterly updates would be sufficient and White seconded the motion. The
motion passed unanimously.
Council members will report on their committee or committees in January, April, July, and
October.
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 Development Board (SIED) — Coffey
f. Yakima Valley Tourism - Coffey
g. Plaza Ad Hoc Committee — Coffey/White
2. Minute Approval
It was Committee consensus to accept the minutes as presented.
3. Discussions
a. Update on partnerships with YVC, Entrust, 100 Jobs and other work force
development programs
No report.
b. 2017-2020 Economic Development Report
i. Progress update from Center for Business Development
Rodriguez introduced Daniel Flores, owner of Xochimilco Restaurants
and a couple margarita/tequila bars in town. The Center for Business
Development was able to assist in expanding his business and
acknowledged staff for their assistance in increasing his business
exposure.
Gutierrez added that she is working with a tortilla factory owner for the
next campaign.
ii. Progress update from Greater Yakima Chamber of Commerce
No report.
iii. Progress update from Choose Yakima Valley
Smith reported that nothing new has been happening on the possibility
of forming a port district. Kittitas has a ballot measure for establishing
a Port District on the ballot for April. Results from that ballot measure
will be discussed at the next Economic Development Committee
meeting.
Smith is working with staff on developing a central area that describes
business incentives for employers looking at relocating or expanding in
Yakima.
Smith reported that Choose Yakima Valley has been conducting
several workforce development programs and offers some online
courses. Gaps in workforce needs have been identified and are being
addressed.
Smith continues working on "cluster businesses".
iv. Progress update from Yakima Hispanic Chamber of Commerce
Gutierrez reported that she is still researching the possibility of a multi-
cultural center in Yakima. A Committee and Board have been formed
and they are moving forward.
v. Progress update from Yakima Valley Tourism
Baule reported that the convention center expansion process has
begun. There are some options they are considering but still a lot of
work to be done.
vi. Progress update from Yakima Air Terminal
Peterson reported that he has met with a few companies looking to
expand operations at the airport. Because of the SIED funding the
airport was able to open up 21st Avenue allowing access to the south
side of the airport. There is a national pilot shortage so staff is working
with YVCC and CWU and discussing the possibility of them expanding
their flight training and programs.
Another challenge is working with Alaska Airlines. FIyYKM campaign
was launched thereby increasing the City's load factors 32% and
expanding air service in and out of Yakima. Unfortunately, people
flying on Alaska have not had good experiences. A draft copy of a
letter to Alaska Airlines was distributed and reviewed. Coffey will make
contact with other jurisdictions about signing on the letter and meeting
with Alaska representatives.
vii. Progress update from City of Yakima/Economic Development
Hawkins reported that Council stopped the incubator project so that
has been eliminated. He continues working on the image campaign
with local partners.
Another area of the plan that Hawkins is focused on is sites for
business. The current challenge is lack of available sites. He is
promoting the mill site property, Tiger Marts and a couple other
locations and has some businesses interested in Yakima.
c. Discussion about changes for the 2017-2020 Economic Development Plan — clarity
for partners and staff
Cortez discussed the Economic Development Plan history and asked for staff
direction. Coffey would like to see the plan keep moving forward. White
believes the plan can move forward with some minor changes.
d. MRSC's Introduction to Economic Development and Mississippi State Community
Economic Development
Cortez provided some information on how different organizations define
economic development.
4. New business
White distributed and reviewed some information on Creative Districts. He will be
participating in a conference call on March 8 to learn more.
White would like to have the Bloomberg Philanthropies and possibly Creative District
funding opportunities added to the March 20 City Council agenda.
White wants to explore fiber optic conduit for the city. Staff will work with info
systems on schematics and provide an update at the May economic development
committee meeting.
5. Audience Participation
Kathy Coffey, Chair
Memorandum
To: City Manager and Yakima City Council
From: Sean Hawkins, Economic Development Manager
Joseph Calhoun, Planning Manager
Date: March 12, 2018
Subject: Truck Route Ad Hoc Committee Meeting
Background:
City staff hosted an information sharing discussion with members of the local trucking
community in the Second Floor conference on Thursday, November 2nd. The discussion was at
the direction of the Yakima City Council who requested the creation of an ad hoc committee on
the establishment of truck routes at their September 19th meeting.
The City sent invitations to over 20 local businesses invited attendance and feedback. The
following attendees were at the session.
Attendees:
1. Kevin Jorgenson — Michelsen Packaging
2. Steve Sheldon — Michelsen Packaging
3. Darin Au - Sims Manufacturing
4. Mac McCarthy — Roche Fruit, Ltd
5. Al Pineda — Roche Fruit, Ltd
6. Jacob Boyle — Coca Cola Yakima/ Dolsen Co.
7. Cesar Rodriguez — YCH Hops
8. Cody Wilmer — YCH Hops
9. Malcom Hicks — Borton Fruit
10. Brett Sheffield — City of Yakima
11. Joe Rosenlund — City of Yakima
12. Joseph Calhoun — City of Yakima
13. Sean Hawkins — City of Yakima
14. Shawn Boyle — Yakima Police Department
15. James Yates — Yakima Police Department
Discussion Details:
Joseph Calhoun reviewed the truck route packet and memo created by City Staff (attached to
this memo) and walked through the process to create truck routes, the inclusion of truck routes
into the City's 2040 Comprehensive Plan and the truck route legislation from Issaquah and
Longview's Municipal Codes. The group conversation that followed centered on two subjects:
1) Establishment of Truck Routes in Yakima — After understanding that a potential truck
route ordinance would require keeping trucks on a defined route before deviating off
towards their destination, there was no voiced objection on the establishment of routes
in Yakima. The concern from the group was that the City would ban certain streets from
truck traffic which we told the group was not our intention. We shared that our intention
would be to keep trucks on the dedicated routes until they needed to turn off towards
their final destination and minimize driving time off of preferred routes. The group also
voiced support on the creation of truck routes if their establishment could support the
City's efforts to find state and federal funding for intersection improvements along the
routes. The group complimented the City's effort to improve certain intersections in
recent years to better support trucking needs.
2) Promotion of Truck Routes in Yakima — Officers Boyle and Yates from YPD reported that
they typically run into trucks getting lost in neighborhoods (sometimes doing damage)
simply because they are using phone mapping software that leads them off major
routes. The businesses added that they often use contract trucking services who run into
the same issue as they often employee drivers who aren't familiar with the community.
While I -Phone technology or services like MapQuest do not offer truck route options in
their list of services, we did discuss that the City's GIS team could possibly create web
based trucking mapping services for any physical location after truck routes are
established. Randy Bonds Jr, the City's webmaster, has reviewed this and said this team
could create this service for our industry partners at Council direction.
Council Next Steps:
City staff is seeking direction from City Council to determine if there remains interest in creating
truck routes within City limits before staff undertakes the efforts to write a new ordinance and
develop a signage program that would be implemented with a new ordinance.
Yakima MSA
(Yakima County)
Labor Area Summary
January 2018
Donald W. Meseck, Regional Labor Economist
Employment Security Department
Yakima WorkSource, 1205 Ahtanum Ridge Drive, Union Gap, WA 98903
Phone: (509) 573-4564; E-mail: dmeseck@esd.wa.gov
Website: https://esd.wa.gov/labormarketinfo
Overview
This report provides an update on the Yakima County economy incorporating not seasonally adjusted,
nonfarm employment and civilian labor force data. Analysis focuses on year over year (between January
2017 and January 2018) and average annual changes (between 2016 and 2017) in the labor market.
Unemployment rates
Preliminary Civilian Labor Force (CLF) data show that Washington's not seasonally adjusted average annual
unemployment rate fell five tenths of a point between 2016 and 2017, from 5.3 percent to 4.8 percent.
Between the Januaries of 2017 and 2018 the rate stabilized at 5.6 percent.
In Yakima County, the not seasonally adjusted average annual unemployment rate decreased seven -tenths of
a percentage point between 2016 and 2017, from 7.5 to 6.8 percent. The unemployment rate fell from 11.2
percent in January 2017 to 9.4 percent in January 2018, an appreciable one and eight -tenths points drop (see
.Figure 1) as the number of residents entering the labor force increased slightly while the number of
unemployed decreased sharply (see Figure 3).
Figure 1, Unemployment rates, not seasonally adjusted
Yakima County, January 2016 through January 2018
Source: Employment Security Department/LMPA; U.S. Department of Labor, Bureau of Labor Statistics, Local Area
Unemploymen Statistics (LAUS)
12%
Unemployment rate
a
Feb
Mar
Apr
May
Jun
J
Aug
Sep
tic*
Nov
Dec
2016
10.7% 9.9%
8.9%
7.7%
7.2%
6.2
.3
6.4%
.2%
5.7%
754
8.9%
-2017
11.2 4
10.0o
8.1 %
6.7%
6.2%
5.3%
4.9%
4.6%
4.8%
6.1%
9.1 %
- 2018
9.4%
Yakima County's unemployment rate dropped one and eight -tenths percentage points between the Januaries of 2017 and 2018.
January 2018 Yakima County Labor Area Summary
Employment Security Department Page 1
Total nonfarm employment
Between 2016 and 2017, Washington's labor market provided 81,300 new nonfarm jobs, an annual average
increase of 2.5 percent. In January 2018, businesses and government organizations across Washington
supplied 3,326,100 nonfarm jobs (not seasonally adjusted), compared to 3,234,200 jobs in January 2017, a
2.8 percent year over year employment increase. The state's economy has posted year over year nonfarm
employment increases for the past 88 consecutive months (October 2010 through January 2018).
The Yakima County nonfarm labor market added 1,900 jobs between 2016 and 2017, an average annual
increase of 2.3 percent. Year over year, Yakima County's nonfarm labor market has been growing for the
past 54 months (August 2013 through January 2018). The local nonfarm market provided 86,300 jobs in
January 2018 versus 81,800 in the corresponding month in 2017, a strong 4,500 job and 5.5 percent upturn.
Figure 2. Nonfarm industry employment, not seasonally adjusted
Yakima County, January 2015 through January 2018
Source: Employment Security Department/LMEA
92.0
Nonfarm industry employment (n thousands)
90.0
88.0
86.0
84.0
82.0
80.0
78.0
76.0
74.0
Jan Feb Mar Apr May
hhih
Jut Aug Sep Oc? Nov Dec
Jun
r'.
R 2015 • 2016 ■ 2017 1! 2018
The number of nonfarm jobs in Yakima County increased 5.5 percent from January 2017 to January 2018.
Employment and unemployment
Washington's Civilian Labor Force (CLF) expanded by 89,522 residents (a 2.5 percent upturn) from 2016 to
2017. The state's labor force has grown, year over year, for the past 48 months (February 2014 through
January 2018). In January 2018, Washington's CLF tallied 3,740,630 residents versus 3,663,456 in January
2017 equating to 77,174 more Washingtonians in the labor force (up 2.1 percent).
On an average annual basis, Yakima County's CLF increased a modest 0.7 percent between 2016 (125,761
residents) and 2017 (126,689 residents). But, the County's labor force has been expanding for the past five
months (from September 2017 through January 2018). In January 2018, the number of unemployed
residents (11,308) countywide plummeted 14.2 percent and by 1,873, below the 13,181 residents out of work
in January 2017, while the number of residents in the CLF grew by 2.0 percent (see Figure 3). The result:
Yakima County's unemployment rate dropped from 11.2 percent in January 2017 to 9.4 percent this
January. The rate has either stabilized or posted year over year declines for the past 11 months (March 2017
through January 2018). The January 2018 unemployment rate for Yakima County is the lowest reading for
the month of January since electronic records were implemented in 1990 - 27 years ago.
January 2018 Yakima County Labor Area Summary
Employment Security Department Page 2
Figure 3. Labor force and industry employment, not seasonally adjusted
Yakima County, January 2017, December 2017 and January 2018
Source: Employment Security Department/LMPA
Yakima County
Labor force and unemployment
Preliminary
Jan -18
Revised I Revised
Dec -17 I Jan -17
Dec -17
Jan -17
Jan -17
Jan -18 Jan -18
Jan -18 %
Civilian labor force
120,022
120,980
117,723
-958
2,299
2.0%
Resident employment
108,714
111,137
104,542
-2,423
4,172
4.0%
Unemployment
11,308
9,843
13,181
1,465
-1,873
-14.2%
Unemployment rate
9.4
8.1
11.2
1.3
-1.8
Industry employment (numbers are in thousands)
Total nonfarm 1
86,3
87.4
81.8
-1.1
4.5
5.5%
Total private
67.5
68.8
64.0
-1.3
3.5
5.5%
Goods producing
12.8
13.0
11.3
-0.2
1.5
13.3%
Mining, logging and construction
3.6
3.9
3.3
-0.3
0.3
9.1%
Manufacturing
9.2
9.1
8.0
0.1
1.2
15.0%
Nondurable goods
5.9
6.0
5.0
-0.1
0.9
18.0%
Service providing
73.5
74.4
70.5
-0.9
3.0
4.3%
Private service providing
54.7
55.8
52.7
-1.1
2.0
3.8%
Trade, transportation and utilities
19.0
19.3
18.6
-0.3
0.4
2.2%
Wholesale trade
4.5
4.6
4.3
-0.1
0.2
4.7%
Retail trade
10.9
11.1
10.8
-0,2
0.1
0.9%
Transportation and utilities
3.6
3.6
3.5
0.0
0.1
2.9%
Professional and business services
6.1
6.2
4.4
-0.1
1.7
38.6%
Education and health services
17.6
17.8
16.7
-0.2
0.9
5.4%
Health care and social assistance
16.3
16.4
15.5
-0.1
0.8
5.2%
Leisure and hospitality
7.5
7.8
7.3
-0.3
0.2
2.7%
Food services
5,8
5.9
5.5
-0.1
0.3
5.5%
Govemment
18.8
18.6
17.8
0.2
1.0
5.6%
Federal government
1.2
1.2
1.2
0.0
0.0
0.0%
State government
2.8
2.5
2.9
0.3
-0.1
-3.4%
Local government
14.8
14.9
13.7
-0.1
1.1
8.0%
Workers in labor/management disputes
0.0
0.0
0.0
0.0
0.0
'Excludes proprietors, self-employed, members of the armed services, workers in private households and agriculture.
Includes all full- and part-time wage and salary workers receiving pay during the pay period including the 12th of the month.
Columns may not add due to rounding.
Between the Januaries of 2017 and 2018, the Yakima County nonfarm labor market gained 4,500 jobs, a 5.5 percent upturn.
Nonfarm industry employment
Not seasonally adjusted estimates show that Yakima County's nonfarm employment jumped to 86,300 in
January 2018 from the 81,800 jobs tallied in January 2017, a 5.5 percent increase, more robust than the 2.8
percent growth pace statewide. Highlights of year -over -year changes follow (as shown in Figure 3):
January 2018
Yakima County Labor Area Summary
Employment Security Department Page 3
• Despite a slow start in the first four months of 2017, employment in Yakima County's construction
industry has either stabilized or posted year -over -year gains for the past nine months (May through
January 2018). Mining, logging and construction tallied 3,600 jobs in January 2018 versus 3,300 in
January 2017, with construction accounting for the lion's share of the jobs in this combined
category. Commercial and residential sales rose sharply in Yakima County in January 2018 versus
January 2017. The January 2018 edition of Headwaters - the Source newsletter published by Icy/
Enterprises LLC i.n Selah, WA stated that the value of commercial and residential sales countywide
jumped 47.1 percent, from $50.1 -million in January 2017 to $73.6 -million in January 2018. The
number of commercial and residential sales increased 29.5 percent, from 207 in January 2017 to 268
in the first month of this year. Conversely, the average home price across Yakima County dipped
from $211,046 in January 2017 to $207,589 in January 2018, a 1.6 percent downturn.
• Yakima County's manufacturing industry netted 1,200 more jobs (up 15.0 percent) in January 2018
than in January 2017. Nondurable goods manufacturers (primarily food processors) accounted for
900 of 1,200 new manufacturing jobs added between the Januaries of 2017 and 2018. Statewide,
manufacturing employment has posted year -over -year losses for the past 20 consecutive months
(from June 2016 through January 2018).
• Yakima County's professional and business services industry added 1,700 jobs (up 38.6 percent)
between the Januaries of 2017 and 2018. Professional and business services in Yakima County has
registered year -over -year job growth for the past four months. This employment category consists
of a diverse set of niche industries, ranging from computer systems design and accounting/tax
preparation services to landscaping and janitorial services, legal services and temporary employment
services. Within professional and business services, temporary employment services is likely
accounting for much of this employment surge - an encouraging indicator. Professional and
business services statewide has increased for the past 93 months (May 2010 through January 2018).
Agricultural employment/production
The Bureau of Labor Statistics' Quarterly Census of Employment and Wage (QCEW) program, conducted
by the Washington State Employment Security Department provides agricultural and nonagricultural
employment and wages for firms, organizations and individuals whose employees are covered by the
Washington State Employment Security Act. Frequently termed "covered" or "QCEW" data, this
information provides a reliable data set for comparing employment and wage trends in major industries at
the county level. In September 2017 revised annual average QCEW data for calendar year 2016 became
available. An analysis of employment changes from 2004 through 2016 shows that in Yakima County:
• Total covered employment rose from 93,988 in 2004 to 111,531 in 2016, a 17,543 job and 18.7
percent upturn. The number of agricultural jobs (a subset of total covered employment) increased
from 20,057 in 2004 to 31,360 in 2016, an 11,303 job and 56.4 percent uptrend. In 2004 Yakima
County's agricultural industry accounted for 21.3 percent of total covered employment. In 2016
agricultural employment accounted for 28.1 percent of total covered employment countywide.
Hence, the agricultural share of employment rose 6.8 percentage points (from 21.3 to 28.1 percent)
in Yakima County during these twelve years.
• Total covered wages rose from $2.49 billion in 2004 to $4.09 billion in 2016 a $1.60 billion and 64.2
percent upturn. The agricultural payroll (a subset of total covered wages) advanced from $346.8
million in 2004 to $892.1 million in 2016, a $545.3 million and 157.2 percent uptrend. In 2004
Yakima County's agricultural industry accounted for 13.9 percent of total covered wages. In 2016
agricultural wages accounted for 21.8 percent of total covered payroll countywide. Hence, the
agricultural share of wages rose 7.9 percentage points (from 13.9 to 21.8 percent) in Yakima County
during these twelve years.
January 2018 Yakima County Labor Area Summary
Employment Security Department Page 4