Loading...
01/12/2019 04 Review Economic Development Plan (1):-471-1 • 1:41 BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 4. For Meeting of: January 12, 2019 ITEM TITLE: Review Economic Development Plan SUBMITTED BY: Cliff Moore, City Manager SUMMARY EXPLANATION: Review followed by policy discussion/direction. ITEM BUDGETED: STRATEGIC PRIORITY: APPROVED FOR f SUBMITTAL: City Manager STAFF RECOMMENDATION: BOARD/COMMITTEE RECOMMENDATION: ATTACHMENTS: Description Upload Date Type r e o D 4a cono ic lopment plan su ma r e o D 4b cono ic lopment Ian AN INTEGRATED BUSINESS APPROACH TO THE CITY OFYAKIMA DECEMBER 12, 2017 MACRO VIEW- 10,000 FEET INTHEAIR ■ CITY CREATED FOUR KEY DOCUMENTS ■ ECONOMIC DEVELOPMENT PLAN (2017-2020) ■ STRATEGIC PRIORITIES (2018) ■ BUSINESS PLAN (2015) ■ THESE DOCUMENT DESCRIBE MANY ACTIVITIES OR THE "WHAT" STRATEGIC PRIORITIES- UMBRELLA DOCUMENT/FRAMEWORK I . ECONOMIC DEVELOPMENT 2. PUBLIC SAFETY 3. BUILT ENVIRONMENT IMPROVEMENTS 4. ENHANCING PUBLIC TRUST AND ACCOUNTABILITY 5. DEVELOPING STRATEGIC PARTNERSHIPS I - ECONOMIC DEVELOPMENT HAS THREE BUCKETS ■ BUCKET # 1 - INCREASING COMPETITIVENESS - HOW?? ■ Expanding the Convention Center with YVVisitors and Convention Bureau— Spring 2018 ■ Evaluating the creation of a Port Authority with Yakima County Development Association — Have tested/surveyed and will watch Kittitas County ■ Facilitating educational alignment between workforce's attributes and employers' needs ■ Marketing commercial airline service/activities- Have used DOT funding + exploring partnership with CWU aviation program + promotion of space ■ Facilitating information on Federal, State and local incentives for economic development ■ Site Facilitation: 1 . City owned properties for sale (Tiger) 2. Facilitating and promoting key sites (Mill, Speedway, others) and 3. Beautification of North 1 " BUCKET #2- PROMOTING TRADED SECTOR ENTERPRISES (QUALITY JOBS) ■ How? ■ Business and Kitchen Incubator currently evaluating sites to identify top candidates for incubator. ■ Airport Business Growth- 2018 will see expansion of JR Helicopter (8 acres) ■ Recruitment Cluster Industries- in 2018Yakima County Economic Development Association will reach out to Cubcrafter's partners to determine fit in Yakima BUCKET #3- ENHANCING PRIDE AND LIVABLEYAKIMA ■ How? ■ PromotingYakima through events — downtown, concerns, 5 de Mayo, etc. ■ EnhancingYakima's image — wine/craft/cider focus + Sundome + Convention Center + D^ A nto • n Plat + Fruit Row Historical District ■ Promoting and creating strategic partnerships- Local (Community Integration Committee) + Regional + Statewide + Interstate + Binational + INCREASING FEES (BUS. PLAN 5. STRATEGIC PARTNERSHIPS) is 8 `' Yakima Economic Development Strategic Plan A plan to spur and sustain the growth of Yakima's Economy over the long-term YAKIMA,WA 2017 - 2020 9 10 1. 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. Starting Increased with... tax base Jobs & training O N O u N r N Stability Lower unemployment I N Q o Diverse Reduced economy poverty rates O U W } 11 \ 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 I Phase II Phase III Where are you Where do you How will you get o now? want to be? there? o Current:Situatton Strategtc:Pncxtttes Mctton::Plan o C 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 in initiative and define roles for implementation. Over 100 people were involved in providing input and guidance for plan development. a U U - J 12 III. Strategic Initiatives to Spur & Grow Yakima's Economy The Steering Committee prioritized twelve Strategic Initiatives that group into three main categories: YAKIMA'S BUSINESS'w&QUALITY CONIMUNITYy COMPETITIVENESS EMPLOYMENT RIDE GIVINTH A.. — Sites for Business — Incubator — Centro de la Raza Mill Site Airport Business Image Campaign Redevelopment Growth Public Authority Recruit Cluster District — Industries — Incentives Educational Alignment — Air Service 0 N 0 Convention ti Center Expansion N s 0 a m m m h 0 E 0 m co 0 E 0 0 w E E m 13 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 •• Sites for Business ® 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 o N plan with infrastructure planningry Pursue funding for infrastructure and other improvements (i.e. CERB, requests to state, etc.) r- Link to available tools o ® Inventory available sites on the market ® Document site information: zoning, infrastructure, planned and funded infrastructure, incentive a U zones, pricing, terms, etc. a) Conduct meetings with property owners or representatives Utilize city mapping resources a) ® Determine best-fit target businesses and run hypothetical project pro forma a ® Post complete site and building information to online real estate databases on City and YCDA > (www.ycda.com) websites o ® Develop a system for maintaining complete information on websites; verify and update at least E- every 90 days oc 0 ® Pursue certified sites designation LL' m E - 14 Coro Worl €ng Group ... Sites for Business Lead Yakima County Development Association & City of Yakima — Economic Development Department Team City of Yakima— Planning Department, Engineering Department, Airport Landowners Real estate brokerage community Yakima County Development Association Resources Washington State Department of Ecology Washington State Department of Transportation Metrics ••• Sites for Business Process Metrics Outcome Metrics ✓ Inventory complete ✓ % 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 0 investment of public investments to sites/infrastructure r O N C (0 a 0 b9 N co a) Y C C C Q O a) 7 0 0 0 0 0 C 0 0 W (0 E } 15 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." Why 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. Tactics .. Mai 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 N • Develop City-led communications plan to inform City Council and general public to create o advocates for mill site redevelopment who are armed with correct information and clear up any ,; misconceptions N 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 0_ ® 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 ° 0 Target developer for business match w Developer meetings and marketing at RECON • Site visits and other recruitment activities with master developer prospects > 16 ® 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 Croup - it+t£ff Site Re ev opment Lead City of Yakima —City Manager Team 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 Resources Real estate brokers and developers o Washington State Department of Ecology N oN Washington State Department of Transportation 0 Yakima Valley Council of Governments N C �d .k 5 • Metrics - 'RS ai n tt"ep Redev&opmenY Eo a) • Process Metrics Outcome Metrics y ✓ Landowner partnership ✓ Number of businesses located ai• ✓ Communications plan developed ✓ Number of jobs and corresponding a ✓ Communications plan launched earnings ✓ Active neighborhood involvement ✓ Private-sector capital investment ✓ Value of increase in tax base ✓ Economic impact of developments at site V Economic impact to document return on 0 investment of public investments - 17 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. Why iimportant? 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 0 ® Invite Core Working Group to kick-off meeting to review tactics and document specific resources No of district benefits • Research the process to establish a public authority district o 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 —0 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 y • 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, 0_ a) Determine the boundaries, scope and specific mission of the Public Authority District 0 Organize campaign around the benefits of the Public Authority District- how that translates o into a better community for all residents Conduct baseline research for support Plan for campaign 18 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 Business community (represented by YCDA, GYCC, HCC of Yakima) Team 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 Resources Successful public development authorities Successful port districts in Washington State Washington Public Ports Association Metrics - Public Authority District Process Metrics Outcome Metrics o ✓ History compiled ✓ Establishment of public authority district N ✓ 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 C m a 0 b9 N co a) Y C C i= Q O a) 0 0 0 0 0 C 0 0 W (0 E } 19 INCENTIVES Goal Responsibly offer and promote a diverse portfolio of competitive incentives that influence business investment in favor of a Yakima location. Why 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. Tactics - incent/ves ® 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 N ® Research gaps where Yakima falls behind or has higher development and operational costs than oN competitors r- ® Package City permitting services as incentive service offering (i.e. timing, payment deferrals, N ombudsman) ° Investigate guarantees for turnaround with complete permit submitted Research and write case studies for recent Yakima developments with successful permitting f Y experienceco • Package Business-to-Business (B-2-B) coupons, deals and other offerings for new business locating in Yakima 0_ • 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 ° 0 ® 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 ° 0 • Promote incentives to local employers to raise awareness and help businesses fully utilize w m Develop communications and outreach plan Implement communications and outreach plan 20 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 of king Group m 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 ✓ Number of businesses (existing and o ✓ Competitor research complete attracted) assisted with incentives o ✓ Capability/law research complete ✓ Number of jobs and wages associated N ✓ Lost project review complete with incentivized businesses ✓ City permitting services package ✓ Economic impact of incentives applied to N ✓ Business-to-Business (B-2-B) package businesses V Communications plan completed (update a websites and outreach to local Eemployers) co Q 7 U O 0 O U W } 21 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 o and job growth areas, via oN Engagement of business organizations (YCDA, GYCC, HCC, Yakima Valley Tourism, Yakima r- Valley Human Resources Association) oN 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) co • Analyze needs versus asset inventory to define gaps ® Create programs to address gaps a ® Measure results of programs ° U O 0 O U W 12 } 22 Coro Working Group .... Educat/anal Ali nine*nt Lead Yakima County Development Association Team 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) Resources Business/local employers Metrics — Education& Al/ nment Process Metrics Outcome Metrics o ✓ Inventory of educational assets complete ✓ Comprehensive package of skill r' ✓ Inventory of occupational awareness enhancement offerings utilized for programs complete marketing to prospective businesses o ✓ Business needs documented ✓ Program graduates/participants ✓ Gaps defined ✓ Job placement rates in Yakima a ✓ New programs developed and funded ✓ Increased earnings U bo N co 0 Q 7 U O 0 O U } 23 AIR SERVICE Goal Sustain and increase commercial airline service at the Yakima Airport (YKM). Why €f u ortwt2 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 City of Yakima-Airport Team Air Service Development & Consulting: AirPlanners, LLC 0 City of Yakima- Economic Development Department No N City of Union Gap r- Greater Yakima Chamber of Commerce Hispanic Chamber of Commerce of Yakima a Yakima Valley Tourism U uo o co Y Resources Federal Aviation Administration a) E a MelTros - Air Seneca Process Metrics Outcome Metrics 0 0 ✓ Airport sales team organized ✓ Passenger growth ✓ Competitor research completed ✓ Load factors o ✓ Fund sources investigated ✓ Number of new flights w ✓ Frequency of outreach with existing ✓ Number of new destinations partners ✓ Increase in airport funds ✓ Marketing plan implementation metrics 24 CONVENTION CENTER EXPANSION Goal Expand the Yakima Convention Center to host targeted groups with world-class amenities. Why Caput tan ta 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. Tactics .. Convention Caster 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 o ® Investigate and pursue funding resources, including state legislative priority N • Development plan ,- ® Recruit hotel developer ® Hire developer/construction firm ® Transition plan during construction into full expansion m • Retail recruitment 0 b9 a) ® Relocate visitor center on a) Y C C C Q O a) 7 a) 0 0 0 0 C 0 0 W (0 E (- } 25 Corn Wort iog Group ... Convention Can tin Expansion Lead Yakima Valley Tourism Team 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 Resources Neighborhood State Legislators Metrics mrr Convention Center Expansion Process Metrics Outcome Metrics ✓ Options evaluated ✓ Expansion completed ✓ Feasibility study on options ✓ Private sector investment— hotel, retailer ✓ Expansion plan developed and approved ✓ Number of events booked ✓ Funding procured ✓ Number of hotel bookings ✓ RFP/RFQ let for developer ✓ Economic impact of events hosted No ✓ Developer hired ✓ Sales tax generated r- 0 N a U b9 N co 0 Q 7 U O 0 O U } 26 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. Metals - 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) r- Technical assistance provided Protocols for occupants—eligibility, requirements, length of stay, etc. Application criteria and process for prospective occupants Budget for defined scope FeasibilityEo studyfor defined scope ® P ® Funding Y Identify resources (i.e. Economic Development Administration, CERB, SIED) o Pursue grants that align with business plan and incubator model � ® Develop physical space • ® Hire incubator manager o • Market and solicit occupants • ® Provide technical assistance to occupants • • Graduate successful companies } Measure economic impact of results 17 27 , rore Working Group ~ /&oubator Lead [ityofYakinoa— EcononoicCeve|opnoentCepartnoent � Team City of Yakima —City Manager � � Downtown Association ofYakima � � Greater Yakima Chamber ofCommerce � � Hispanic Chamber of Commerce ofYakima � � Rural Community Development Resources � Resources Small Business Development Center � State Legislators � US Economic Development Administration � kfatr/cs - /ncubator Process Metrics Outcome Metrics `/ Scope defined `/ Incubator built out for occupancy `/ Location and design defined `/ Number of incubator business occupants `/ Business plan completed and corresponding job counts `/ Feasibility plan completed `/ Number of graduating companies `/ Funding secured `/ Economic impact of occupants and Incubator manager hired d ��rr� graduates co � � 28 AIRPORT BUSINESS GROWTH Goal Locate a comprehensive supply chain of traded-sector aviation companies and suppliers to prioritized sites adjacent to the Yakima Airport. Why iimportant? 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. Tact/rzs .... 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 0 Also, includes potential customer base in region and logistics to existing customers from Yakima location 0 N Research source locations of target companies and prepare cost comparisons to Yakima- based operations U ® Develop outreach plan to meet with target businesses, involving local businesses for un a) introductions m co • Leverage Washington State Department of Commerce marketing to aircraft and aerospace manufacturers, including relevant industry conferences and tradeshows o • Leverage relevant Governor Missions U 0 O U W } 29 Core Work€tag 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 Gusuposs Growth Process Metrics Outcome Metrics ✓ Target list ✓ Number of business locations, ✓ Business case, including case studies, corresponding jobs, wages, capital completed investment ✓ Outreach plan completed ✓ Economic impact of recruitments ✓ Number of businesses contacted N ✓ Number of proposals sent ✓ Number of site visits by target companies C (0 a 0 b9 N co a) Y C C C Q O a) 0 0 U 0 0 C 0 0 W (0 E } 20 30 RECRUIT CLUSTER INDUSTRIES Goal Locate traded-sector businesses that compliment yet diversify Yakima's economic base. Why ;mawta /2 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. Tactics u 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 oN Team City of Yakima— Economic Development Department N r c-I 0 Resources Aerospace Futures Alliance N City of Yakima— Planning & Public Works o . Commercial real estate developers, brokers and landowners En Inland Northwest Aerospace Consortium on Utilities it Washington State Department of Commerce 31 Metrics .. Recruit Cluster Industries Process Metrics Outcome Metrics ✓ Target industries defined ✓ Number of business locations, ✓ Business case, including case studies, corresponding jobs, wages, capital completed investment ✓ Outreach plan ✓ Economic impact of recruitments ✓ Number of businesses contacted ✓ Number of proposals sent ✓ Number of site visits by target companies O N O r 0 O N C (0 a 0 b9 N co Y C C C Q O a) 0 0 0 E O C 0 0 W (0 E >- 32 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 RADA Goal Establish a Latino cultural center (Centro de la Raza) to honor the diverse cultural assets of the Yakima community. Why either tenth 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. harems .... Centro de la Raze • 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 0 Revenue streams N Staffing r- 0 ® Procure funds ® Engage contractors m ® Construction Eo • Marketing a) ® Management of facility on 0 Q 7 U E- 0 O U W } 33 Coro Working Group •••• Contra do fe Rota Lead Hispanic Chamber of Commerce of Yakima Team City of Yakima Movimiento Estudiantil Chicano de Aztlan (MEChA) Rural Community Development Resources Sally Tonkins Resources Philippine community representatives Yakima Community Foundation Yakima Nation Yakima Valley Museum Metrics mm Centro de la Raze Process Metrics Outcome Metrics ✓ Research completed ✓ Centro de la Raza built ✓ Project scope defined ✓ Number of visitors ✓ Feasibility study completed ✓ Business plan completed ✓ Funding procured ✓ Contractor hired O N O r O N C (0 a 0 b9 N co a) Y C C i= Q O a) 7 0 0 U E O C 0 0 W (0 E } 24 34 IMAGE CAMPAIGN Goal Enhance local pride in community and foster positive "buzz" about Yakima. Why ;m ortwt? 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. rzir., — image Campaign ® 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 O N O r 0 O N C (0 a U E0 N a) Y C C C Q O a) 7 a) 0 0 E O C O 0 W (0 E } 35 Coro Working Group .... imago Campaign Lead Greater Yakima Chamber of Commerce & Hispanic Chamber of Commerce of Yakima Team City of Yakima—Communications Department I IP 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 Resources Breweries/craft beverage businesses Yakima Arts Commission Yakima area service groups Metrics .... imago Campaign Process Metrics Outcome Metrics ✓ Research of current brand/marketing ✓ Social media analytics ✓ Perception survey completed ✓ Change in resident perception of Yakima ✓ Campaign developed image r- ✓ Funding procured ✓ Change in external perception of Yakima C (0 a 0 b9 N co Y C C C Q O a) 0 0 0 0 0 C 0 0 W (0 E } 2 36 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 No our purpose. Our results, along the way as well as outcomes, will be consistently communicated in line r with principles for successful implementation. 0 o STRUCTURE m The Lead for each Strategic Initiative Working Group will participate on the Yakima Economic Growth a Team, coordinated and led by the City Economic Development Manager. un 0 m Each Lead wall ® Develop implementation timelines with benchmarks ® Report progress of Strategic Initiatives to Yakima Economic Growth Team a ° ® Ask for assistance/feedback from the Yakima Economic Growth Team o ® Track metrics for Strategic Initiative E- • 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. 27 37 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. Tactics m Communmations ® 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. O N O r 0 O N C (0 a U b9 N a) Y C C C a O a) 7 a) 0 0 E O C 0 0 W (0 E } 28 38 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 Avina Gutierrez Carmen Mendez District 1 District 2 District 3—Assistant Mayor Bill Lover Kathy Coffey Maureen Adkison District 4 District 5—Mayor District 6 Holly Cousens District 7 YAKIMA ECONOMIC DEVELOPMENT STRATEGIC PLAN STEERING COMMITTEE Kathy Coffey,District 5—Mayor Avina Gutierrez,District 2 Maureen Adkison,District 6 City of Yakima City of Yakima City of Yakima Holly Cousens,District 7 Cliff Moore,City Manager Sean Hawkins,Economic Dev.Manager City of Yakima City of Yakima City of Yakima Colleda Monick,Economic Dev.Assistant Cally Price,Assistant to City Manager Verlynn Best,CEO/President City of Yakima City of Yakima Greater Yakima Chamber of Commerce Luz Bazan Gutierrez,Secretary Maria Rodriguez,Executive Director Jonathan Smith,President/CEO Hispanic Chamber of Commerce of Yakima Rural Community Development Resources Yakima County Development Association John Cooper,President&CEO Yakima Valley Tourism PARTICIPANTS IN COMMUNITY ASSET SITE VISIT Jeff Gaskell,Operations Manager Meghann Quinn,President Carolyn Belles,Permit Project Coordinator Adventurer LP Bale Breaker Brewing Company City of Yakima O Dave Brown,Water/Irrigation Division Mgr. Joseph Calhoun,Senior Planner Joan Davenport,AICP,Planning Manager O City of Yakima City of Yakima City of Yakima r— Glenn Denman,Building Official Supervising Jeff Peters,Supervising Planner Mike Price,Wastewater Manager Code Inspector City of Yakima City of Yakima O N City of Yakima Charlie Robin,CEO Thane Phelan,Vice President& Russ Roberts,CCIM d The Capitol Theater Yakima Communications/Marketing Heritage Moultray Greater Yakima Chamber `aq Joseph Monier,President&CEO Bob Gerst,Vice President Human Resources Christina Cote,President JEM Development Real Estate Inc. John L.Haas,Inc. Perry Technical Institute Erin Fishburn,Director of Institutional Mike Wright,Plant Manager Linda Johnson,Certified Business Advisor Effectiveness&Advancement Quanex Building Products Small Business Development Center pPerry Technical Institute a) N Patrick Baldoz,Director Tommy Hanses,Operations Manager Jean Brown,Business Development Director 0 South Central Workforce Council Washington Fruit&Produce Company Yakima County Development Association 0 Joe Schmitt,Marketing&Dev.Director Duncan MacLeod,Executive Director Paulette Lopez,Dean of Workforce 0 Yakima County Development Association Yakima Makers Space Education Division Yakima Valley Community College w m Craig Dwight,Director co Valley Technical Skills Center } J r 39 x 0 • ';. .;.L.., a; ......... ........ ,.v,,,,,.' -he Intersection of Site Se ection & 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 K J