HomeMy WebLinkAbout12-002 City County Port Joint Resolution on Economic Development City Resolution �
County Resolution ,
Port Resolution 571-11
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STATE OF WASHINGTON
County of Jefferson
City of Port Townsend
Port of Port Townsend
Joint Resolution of the Jefferson )
County Board of County Commissioners )
the Port Townsend City Council, and the ) County Resolution No_, I. 12-
Port of Port Townsend Port Commission ) City Resolution No. 'Z (,x).2-
Approving a Process to Coordinate and ) Port Resolution No. 571-11
Promote Enhanced Inter-jurisdictional )
Coordination in Regards to Regional )
Economic Development Committee )
The Board of County Commissioners (BoCC) of Jefferson County, Washington, the City
Council of Port Townsend, Washington, and the Port Commission for the Port of Port
Townsend, Washington, do hereby jointly resolve as follows:
WHEREAS, concern over the impacts of a weakened global, national and local
economy on the local community and the ability of the County, City and Port to provide
important services, has prompted the three jurisdictions to look for new ways to
cooperate as local governments; and
WHEREAS, the three jurisdictions understand the urgent need to more effectively
coordinate their activities and more efficiently deliver services to meet community
needs; and
WHEREAS, in Fall 2009, the rezoning of rural light industrial land at the Jefferson
County International Airport highlighted the need for the County, City and Port to
improve their intergovernmental communication and better coordinate their economic
development efforts; and
WHEREAS, in May of 2010 a "Joint Planning Agreement" was signed whereby the three
jurisdictions committed to developing a coordinated strategy for sustainable economic
development; the Agreement identified a three part process that included: the
collection and analysis of economic data to provide an accurate "snapshot" of the
current state of the local economy; the development of a shared economic vision that
would provide guidance to the three jurisdictions in identifying priorities; and the
development of complimentary policies and action steps that would help focus efforts in
a coordinated manner; and
City Resolution
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Port Resolution 571-11
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WHEREAS, an Inter-jurisdictional Elected Working Group (the Working Group)
comprised of an elected official and staff from each jurisdiction and Team Jefferson has
met monthly to implement the process and advance the development of a coordinated
economic strategy; and
WHEREAS, baseline economic data was independently collected by E.D. Hovee &
Company to allow informed choices regarding economic development policies and
infrastructure priorities; and
WHEREAS, the Working Group has reviewed the baseline data and proceeded to
develop a Draft Joint Economic Development Strategy; and
WHEREAS, it has become apparent that the forecast for economic recovery has
dimmed since the joint economic development planning process was initiated in the
spring of 2010, and most projections now suggest that the "recovery" is "L" shaped with
substantial economic rebound occurring in an undefined, indefinite future; and
WHEREAS, the likelihood that State and Federal funding will return to levels resembling
the period prior to the "great recession" has greatly diminished, and obtaining federal
and state funding for significant new capital projects is more difficult; and
WHEREAS, as the ability of state and local government to fund new infrastructure and
services has decreased, while many in the community are looking to government to
help solve economic problems; and
WHEREAS, the Working Group has prepared a Draft Joint Economic Development
Strategy (attached as Exhibit 1) that reflects the collaborative efforts of the three
jurisdictions to date; and
WHEREAS, although the Draft Economic Development Strategy prepared to date is a
good starting point, changed circumstances require careful refinement in light of the
changing economic environment, and the Working Group recommends that the three
jurisdictions continue working closely together to maximize the likelihood for success;
and
WHEREAS, the Working Group has identified a process that will allow continued
communication and coordination between the jurisdictions for future adoption of a Joint
Economic Development Strategy setting forth objectives, strategies and a prioritized list
of major regional capital projects and policy initiatives; and
WHEREAS, the Working Group has concluded that it is critical for the economic health
of the County that the three jurisdictions and the Working Group continue to meet
regularly, and communicate more frequently and effectively;
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Port Resolution 571-11
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NOW THEREFORE BE IT RESOLVED AND HEREBY ORDERED THAT:
Section 1. Inter-jurisdictional Coordination to Continue. The Working Group,
comprised of elected representatives of the City, County, Port, jurisdictional staff and
Team Jefferson, will continue to meet to develop and refine the Joint Economic
Development Strategy for consideration and possible adoption by the respective
jurisdictions. It is anticipated that the Draft Joint Economic Development Strategy will
be completed and suitable for formal public and jurisdictional review by the fall of 2012.
It is further anticipated that the draft strategy will include a prioritized list of major
regional capital projects and policy initiatives supported by all three jurisdictions.
Section 2. Direction to Inter-jurisdictional Staff. The City, County, Port and Team
Jefferson direct their respective staffs to meet on monthly basis with Team Jefferson to
monitor and discuss current development trends, the progress of pending projects and
proposals that may have county-wide economic implications, and to refine and finalize
the Draft Joint Economic Development Strategy.
This resolution shall become effective upon adoption by the Board of County
Commissioners, the City of Port Townsend and the Port of Port Townsend.
APPROVED AND SIGNED THIS day of 2012
SEAL: y r a, . JEFFERSON COUNTY BOARD OF COMMISSIONERS
/°(PI
Jo stin, Chairman
ti
Phil Joh ���, Member
Attest:
David Sullivan, Member
Raina Randall
Deputy Clerk of the Board
City Resolution
County Resolution (-J—1
Port Resolution 571-11
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�7'AAA&'�'�.
APPROVED AND SIGNED THIS day of.L'l 2012
b'vi Mayor/
City of Port Townsend
Attest: Approved as to form:
Pamela Kolacy, MMC, City Cr John P. Watts, City Attorney
APPROVED AND SIGNED THIS 28th day of December 2011
Att st,
ohn
. Collins,
ecr'eiary David R Thompso q,,President
*eif . rrickLs`on, Vice'President
Approved as to form:
A,
16
Carolyn bCtake, Goodstein Law Group, PLLC
Port Attorney
DRAFT
JOINT ECONOMIC DEVELOPMENT STRATEGY
A Coordinated Effort of Jefferson County, the City of Port
Townsend, & the Port of Port Townsend
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PORT OF
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PORT TOWNSEND
ap-
With Support & Assistance from:
The Economic Development Council of Jefferson County ("Team Jefferson")
D I I E
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Date of "Integrated" Staff Draft: October 24, 2011
This Draft Strategy was Collaboratively Prepared by an Inter-Jurisdictional Team of Staff and Elected
Officials from Jefferson County, the City of Port Townsend, and the Port of Port Townsend
FOREWARD
The economic health of our community is most effectively pursued in partnership. This
Strategy aims to show how the County, City and Port intend to collaborate to maximize
the economic health of our community.
Jefferson County's extraordinary natural setting, status as a renowned visitor
destination, relative isolation from the Puget Sound's metropolitan areas, and significant
proportion of non-local based income, offer significant economic opportunities and
challenges for our future. This Strategy reflects our collective desire to ensure that
Jefferson County remains a great place in which to live, work, visit and recreate, and
aims to foster a dynamic economy in which the public sector supports our
entrepreneurial culture.
Our Strategy sets out both immediate and longer term strategies and the actions
necessary to achieve success for our residents, our businesses, visitors, and our
students. Behind the Strategy is a plan of action that describes how we intend to
continue working together to make its promise a reality.
Through community workshops and business sector sessions conducted by Team
Jefferson, many individuals, businesses and organizations have helped to shape this
Strategy. The County, City and Port greatly value the community's participation in this
effort.
On behalf of the three partner jurisdictions, we are pleased to present the Joint
Economic Development Strategy to you.
David Sullivan, Commissioner
Jefferson CountyBoard of CountyCommissioners
Michelle Sandoval, Mayor
City of Port Townsend
John N. Collins, Commissioner
Port of PortTownsend Port Commission
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 1 OCTOBER 24, 2011
I. Project Background
Concern over the impacts of a weakened global, national and local economy on our
communities, families, and the ability of the County, City and Port to provide important
services, prompted us to look for new ways to cooperate as local governments. We
understand the urgent need for us to effectively coordinate our activities and more
efficiently deliver services to meet community needs.
With the help of the Economic Development Council of Jefferson County ("Team
Jefferson"), we prepared this Strategy to facilitate intergovernmental discussion and
coordinateand prioritize major infrastructure projects and policy initiatives that will boost
our community's economic vitality. Successful implementation of the Strategy will
ensure that that local government, business and the community are working as a team
to improve our community's economic health.We intend to regularly update and revise
this Strategy (e.g., every 3-5 years) to reflect emerging economic information and
identified community needs.
In the autumn of 2009, the rezoning of rural light industrial land at the Jefferson County
International Airport highlighted the need for the County, City and Port to improve their
intergovernmental communication and better coordinate their economic development
efforts.Through a "Joint Planning Agreement" signed by the parties in May of 2010, the
jurisdictions committed themselves to developing a coordinated strategy for sustainable
economic development. It was agreed that the process should address three key
areas:
• Data Collection & Analysis;
• Development of a Common Economic Development Vision; and
• Development of Complimentary Policies & Action Steps.
In response to this agreed upon framework, baseline economic data was independently
collected by E.D. Hovee& Company to allow informed choices regarding economic
development policies and infrastructure priorities (see Section II, "Current Economic
Conditions").Next, an economic development vision and goals were prepared as a
critically important step prior to preparing policies and implementation actions (see
Section III, "Our Shared Mission & Economic Vision").Finally, specific Objectives and
Strategies (see Section IV), as well as a prioritized list of Joint Regional Economic
Development Projects, were developed to help guide intergovernmental decision-
making into the future (see Section V).
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 2 OCTOBER 24,2011
II. Current Economic Conditions
Background
In the summer of 2010, E.D. Hovee& Company was hired to collect and analyze local
economic data and prepare an "Economic Existing Conditions Report" to provide the
factual basis for the joint planning effort. On October 28, 2010, Mr. Hovee presented
his findings and written report at an inter-jurisdictional meeting of the County, City and
Port. The text within this section is drawn substantially from the Executive Summary
provided in the E.D. Hovee report; the full text of the report is included in Appendix "A."
A major part of the review was to summarize economic planning work already
conducted for Jefferson County in recent years —followed by an updating the
demographic and economic indicators as of 2009-2010.
Prior Economic Assessments.Two major assessments have been conducted over the
past decade:
• In 2002, a Jefferson County Economic Assessment was completed by the
University of Washington School of Public Affairs (Paul Sommers). The report
reviewed key trends at the time — noting that "Jefferson County's economy is
transitioning from a reliance on forestry, wood products, fishing and other marine-
related industries to one based on retirement, tourism, and linkages to the `new
economy' in the Seattle area." Stakeholder interviews and a business survey
were conducted and a series of industry clusters recommended as a means to
organize local economic development initiatives. The clusters recommended by
Sommers in 2002 coincide well (albeit with some revision) with the business
sectors recently profiled through updated 2010 analysis by Team Jefferson.
• In 2007, E.D. Hovee and company, LLC was retained to prepare a countywide
industrial commercial land inventory, infrastructure assets and economic
development analysis. A business needs questionnaire was distributed to 1,290
businesses throughout Jefferson County. Three alternative scenarios were
prepared to illustrate potential employment and accompanying land needs for
Jefferson County over a 20-year forecast horizon (2007-27) — including
extrapolation of the exiting job trends, an alternative for jobs-housing balance,
and a third scenario associated with a jobs premium for selected target industry
sectors.
Updated Economic Indicators. As of 2010, Jefferson County has a population
estimated at 29,300. As the county's only incorporated city, Port Townsend's 8,945
residents account for less than one-third (30.5%) of population countywide. In the past
decade, population countywide has increased by about 11% (+3,000 residents), a rate
of growth below the statewide increase of 14%. Other indicators of note include the
following:
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 3 OCTOBER 24, 2011
• Port Townsend and Jefferson County residents tend to have lower households
incomes but higher housing prices and higher levels of education than is typical
throughout the rest of the state.
• As of 2009, Jefferson County had an estimated 1,070 firms employing more than
8,200 workers. The average annual wage is just under $31,700 per employee
(33% below the statewide average of$47,500).
• From 2002 to 2009, the number of firms in Jefferson County declined (by 0.8%
annually), the total number of jobs have remained essentially flat (reflecting
substantial job losses from 2008-09), but average wages have increased at a
moderate pace (averaging 3.4% annual gains).
• When adjusted for inflation, median wages for workers in Jefferson County have
increased at a much more modest rate averaging less than 1% per year since
1990 —with wages peaking in 2005, before the most recent economic downturn.
Compared to the rest of the state, Jefferson County wage levels appear to be
disproportionately and adversely affected during recessionary time periods — as
in 2001 and again in 2007-08.
• When measured by number of employees, government represents the largest
overall sector with over 2,100 employees, as is the case statewide. The only
other sectors with more than 900 jobs in Jefferson County are
accommodations/food services, retail, and health care social assistance. Taken
together, these four industry sectors account for nearly 5,050 jobs — more than
60% of total employment in Jefferson County.
• Over the last several years, unemployment rates have nearly doubled and have
remained high — 8.6% for Jefferson County and 8.9% for the State of
Washington as of August 2010, and 9.3% for both the County and State as of
August 2011.
• Wage and salary sources account for a declining 30% share of total personal
income in Jefferson County— a much lower proportion than statewide.
Comparatively high proportions of personal income locally are investment and
transfer payments.
• Taxable retail sales have increased in roughly similar fashion for the City and
unincorporated County area over the last 15 years — but with much greater year-
to-year variability for the County. This is due to greater reliance on construction
activity outside the City—with a substantial downturn in activity experienced from
2008-09.
• Tourism is of considerable importance — accounting for about 18% of the job
base countywide. On a per capita basis, visitor spending is better than 50%
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 4 OCTOBER 24, 2011
above the statewide per capita average but appears to be increasing more slowly
than statewide.
• Due to the county's small population base, Jefferson County appears to offer
potential for added retail activity across virtually all business types except health
and personal care. Retail sales volumes compared to resident generated needs
currently appear strongest with retail categories for which visitor expenditures
serve to offset at least a portion of the sales leakage than can occur when local
residents travel outside the county to shop.
Regional & Local Position of County, City & Port
A second objective of the Existing Economic Conditions Report was to begin the
discussion of how economic changes globally, nationally, statewide and/or regionally
might affect earlier conclusions and recommendations of the 2002 and 2007 countywide
economic analysis.
Patterns of Economic Change. This analysis distinguishes between patterns of
change being experienced globally, nationally, statewide and regionally—with further
distinction between unanticipated changes brought on by the current economic
downturn and longer term changes that can be expected post-recover over the next 10-
20 years, notably:
A. With Economic Downturn (& Early Phase Recovery):
✓ Financial Market Retrenchment— related to financial deleveraging,
tightened consumer and business credit, and public sector
intervention;
✓ Jobless Recovery? — reflecting sectoral and location specific job loss
with minimal expectations for substantial recovery now extending
beyond 2011; and
✓ Stalled Development— including construction shut-down, declining
home and investment real estate values.
B. Post-Economic Recovery (Over 10-20 Years)
✓ Financial Market Restructuring—with more conservative underwriting
and emerging public sector fiscal stress;
✓ Changing Competitive Advantage —with competitive positioning
favoring global pathways of economic opportunity;
• Emerging Economic & Demographic Drivers—for targeted
employment amid ongoing economic instability, aging demographics
and urbanization;
• Environmental & Infrastructure Drivers— including impetus for
alternative energy, going green, and hard and soft infrastructure
needs; and
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 5 OCTOBER 24, 2011
✓ Changing Development Paradigm— affecting development feasibility,
real estate churn, and residential and commercial development
products.
For Jefferson County, the determination of which global patterns — including both
challenges and opportunities —will be of greatest importance may represent a key topic
of discussion as part of the strategic economic development planning and
implementation process now underway. Two areas of added focus are highlighted in
the Economic Existing Conditions Report —the changing face of American employment
and aging demographics:
• With the exception of the five year period ending in 2015, when faster job growth
nationally is forecast with economic recovery, at no other point through 2035 is
employment growth domestically expected to again come close to the high
growth experienced in the 198Os and 1990s. Since 1985, employment growth in
the state of Washington has increased more rapidly than nationally, though the
in-state advantage in performance has narrowed since 2000.
• A second emerging trend of note is demographic. For at least the next 15 years,
persons 55 years of age and older will represent the bulk of net population and
household growth in the state of Washington. This trend can be expected to
affect the economy in ways ranging from housing demand to retail sales to labor
force replacement and health care demand. A pivotal policy and marketing
question for non-metro areas is over the ability to attract and retain a balanced
mix of younger households versus potential service demands associated with an
aging population.
Washington State &the "Innovation Economy." For the State of Washington, a
major shift in economic development emphasis in indicated by the 2009 report of the
Washington Economic Development Commission which advocates a shift from what
has been described as a traditional approach to economic development to an innovation
based economy. This approach suggests investing in talent and infrastructure rather
than focusing primarily on attracting companies — and in quality of jobs and per capita
incomes rather than simply increasing the number of jobs. For rural communities of the
state, investing in internet broadband capability appears to be of increased importance
for functions ranging from e-commerce to distance learning and telemedicine to
telecommuting and business development.
While recognizing economic cluster analysis that has been conducted on a statewide
level in the past, this new strategic approach focuses less on clusters and more
outcomes — in terms of"high growth, high employment, traded sectors" offering realistic
potential to bring new wealth into the state and its communities. However, the strategy
does call out specific opportunities for job growth and improvement in sectors including
tourism, aerospace and clean energy— together with possible new sectors such as life
sciences, information technology, and electronic gaming.
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 6 OCTOBER 24, 2011
Regional - Local Position of the County, City & Port.While the emphasis of the
Economic Existing Conditions Report is on joint economic development planning, it is
important to understand needs and opportunities distinctive to the individual jurisdictions
of Jefferson County, the City of Port Townsend and the Port of Port Townsend —
together with the role of the Jefferson County Economic Development Council/Team
Jefferson as the countywide lead organization for economic development:
• As a largely rural county, most of unincorporated Jefferson County is
characterized by population concentrated in the northeast portion of the county—
at the Master Planned Resort of Port Ludlow and the Tri-Area. Quilcene and
Brinnonare the largest communities in the southern portion of the county. Other
than the City of Port Townsend, Irondale and Port Hadlock comprise the only
unincorporated UGA in Jefferson County. Major initiatives that directly or
indirectly relate to economic development have included Irondale and Port
Hadlock UGA (as the primary regional growth center for the unincorporated
portion of the county), the Glen Cove light industrial area LAMIRD (for more
intensive rural development including light industrial and commercial activity),
Brinnon Master Planned Resort (MPR — being planned), revision to the Port
Ludlow MPR (scaling back the commercial but increasing the residential activity),
and rezoning of a site at the Jefferson County International Airport (allowing non-
aviation related industrial and manufacturing uses).
• As the only incorporated city in Jefferson County, the City of Port Townsend
has received widespread recognition as a good place to visit and live. While
businesses locally have been affected by the economic downturn, the City has
maintained revenues over the last three years from diverse sources including
sales, lodging and business and occupation (B&O) tax sources. With its Capital
Investment Strategy, the City of Port Townsend has prioritized maritime
investment, Upper Sims Way and Howard Street improvements and the Fort
Worden Life Long Learning Center as three "economic anchors" pivotal to
continued community vitality.
• The Port of Port Townsend serves all of Jefferson County— operating three
marinas, a marine trades industrial area, the Jefferson County International
Airport, an RV park, and boat launches at multiple sites. From 2000-08, Port
revenue and expenses more than doubled (peaking in 2008) — though the
recession has brought subsequent budget reductions in the last three years.
Planned initiatives for the future have focused on two areas — harbor and airport
improvements.
• The Economic Development Council of Jefferson County ("EDC/Team
Jefferson") serves as the County-designated and Washington State Department
of Commerce authorized Associated Development Organization (ADO) and lead
economic development organization in Jefferson County. EDC/Team Jefferson
is focusing four key local economic development initiatives — to energize
entrepreneurs, attract 18-35 year-old emerging entrepreneurs, encourage
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 7 OCTOBER 24, 2011
community reinvestment, and developing community leadership. EDC/Team
Jefferson has also recently conducted an analysis of key business clusters for
priority emphasis in Jefferson County— including advanced technology and
manufacturing, arts and culture, education, small business and entrepreneurship,
food and farm, health care, maritime, real estate and construction, and tourism
and retail activities.
Economic Data Assessment
The economic data presented with the Economic Existing Conditions Report (see
Appendix "A," attached), together with other immediately available resources provided a
reasonable basis for proceeding with the joint economic development planning process.
While there appears to be a good repository of existing data, additional economic data
research and analysis could be considered to:
• Address specific questions or provide more in-depth information if requested
during the planning process —with possible options including more detailed
employment analysis (as for sub-county geographies and/or target business
sectors), more detailed demographic and/or housing (including affordability)
analysis, and/or benchmark comparison with similar rural amenity communities.
• Added update opportunities could encompass such items as incorporation of
2010 U.S. Census results, updated business survey, adjusted employment and
associated land demand scenarios, GIS land inventory updating, and/or
preparation of an economic development element in conjunction with the next
update of County and City comprehensive plans under the Growth Management
Act (GMA).
Assessment of Strengths, Weaknesses, Opportunities & Threats
A final objective of the Economic Existing Conditions Report was to provide a
preliminary assessment of strengths, weaknesses, opportunities and threats (or SWOT)
affecting the local economy. This preliminary assessment was based upon information
compiled from the economic indicator, global to local and data gap assessments
provided as part of the baseline report.
Strengths & Weaknesses.Economic strengths and weaknesses reflect existing
conditions and trends. Countywide strengths include quality of life appeal, proximity to
the Seattle metro area, being a recognized visitor destination and having a high
proportion of non-locally generated income.
Countervailing weaknesses include relatively high and growing service sector needs,
long travel times to Puget Sound urban centers, vulnerability to transportation
disruptions, and a relatively low wage economy. More specific strengths and
weaknesses are noted for the County, City and Port in the full report (see Appendix "A,"
attached).
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 8 OCTOBER 24, 2011
Opportunities & Threats. Identified opportunities and threats are forward looking,
reflecting a combination of locally determined initiatives plus economic drivers external
to Jefferson County. Opportunities of potential importance countywide include value-
added visitor services, retirement cluster, advanced technology with broadband
capability, and going green.
Potential threats that could serve to undermine future opportunities include possible
over-dependence on mature travelers, added retiree demands on public services,
distance from markets and direct business-to-business client contacts affecting
desirability of doing business in Jefferson County, and added costs or uncertainties
associated with green development.
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 9 OCTOBER 24, 2011
III. Our Shared Purpose, Values & Vision
The economic health of our community is most effectively pursued in partnership. This
Strategy aims to clearly articulate our shared economic mission, and the values that
guide us as we work to accomplish our mission.
Our Purpose
Our purpose is to support and promote a prosperous and sustainable economy,
a vibrant business environment, and good job opportunities for the residents of
our community.
Our Values
Shared by all three economic development partners, these values shape and guide us
as we work together to serve the wider Jefferson County community:
Respect-We respect each other as individuals, listen to understand, and seek to enrich
the lives of those with whom we work.
Integrity-We never compromise our integrity. To be honest, sincere and reliable is the
way we earn each other's trust and build long-term relationships to serve the
community.
Team - We work together, inspire each other and praiseeach other's successes.
Our Vision
In Jefferson County, our citizens, communities, neighborhoods, and businesses share a
unique sense of local identity and purpose. We care about each other and this
community, and recognize our responsibility for the long-term well-being of this place
we call "home".As active participants in the life of our community, we are willing to make
choices today that will help to shape our future, rather than merely allowing the future to
shape us. We recognize that key public investments today will help us to improve and
maintain our long-term economic health.
Our future economic vitality rests primarily with the private sector, not the County, City
and Port governments. Still, our local governments can play an important role in
contributing to a robust community. Government can provide the "necessities" that
enable individuals and businesses achieve their potential — and they can also assist in
preserving those aspects of our community's character and natural environment that
make this place unique.
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 10 OCTOBER 24, 2011
Through this Strategy, the County, City and Port arefocusing their efforts on three keys
for our economic future:
1. Developing infrastructure that overcomes our isolation.)n part, our unique
quality of life owes its existence to our remoteness. Local government works to
develop critical pieces of infrastructure that enable our businesses and
communities participate more fully in larger economic markets without
compromising our special character.
2. Fostering educational excellence. Good communities depend on good schools
for their long-term sustainability and prosperity. We actively collaborate with our
schools to provide the highest quality educational programs and support student
achievement. With community support, our school districts provide a gateway to
vocational and life-long learning programs and choices that enrich lives and
sustain our local economy.
3. Maintaining and enhancing our quality of life. Jefferson County is historic,
diverse, and blessed with unparalleled natural beauty and rural and small town
character. This unique character and setting is why many choose to live here.
Our local governments actively work with citizens to preserve our natural
environment, sense of rural character, and historic qualities, while helping the
private sector to flourish.
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 11 OCTOBER 24, 2011
IV. Objectives& Strategies
The Strategies & Objectives outlined in this section describe the immediate and longer
term actions we intend to take to support existing businesses and cultivate an
environment in which new enterprises may emerge.
Objective #1: Establish short-term strategies that define jurisdictional roles, enhance
inter-jurisdictional coordination, and enhance the ability of the County, City and Port to
be responsive to emerging economic opportunities.
Strategies:
1.1: Work collaboratively to support the prosperity of existing economic centers
throughout the County.
1.1.1 Acknowledge that the economies of our communities are interconnected,
and that we all benefit from the economic health and prosperity of each
community.
1.1.2 Focus economic planning efforts and public investments in existing
economic areas (see Figure #1: Diversified Economic Areas, on page 13):
• Port Townsend;
• Glen Cove;
• the Jefferson County International Airport;
• Port Hadlock - Chimacum;
• Port Ludlow;
• Quilcene; and
• Brinnon.
1.2: Agree upon a coordinated capital project scheme, and develop a funding strategy
and schedule that minimizes inter-jurisdictional competition over limited
resources.
1.2.1 Develop and jointly implement a set of criteria to evaluate and rank major
capital project priorities county-wide.
1.2.2 Collaborate and support each other in obtaining funding for identified high
priority projects.
1.3: Evaluate permittingprocesses to identify and eliminate bottlenecks.
1.4: Continue to work together as a team and seek to communicate more frequently
and effectively. To this end:
1.4.1 Our staffs will meet on a monthly basis to monitor progress
in achieving these agreements; and
1.4.2 Inter-jurisdictional staff will report on a quarterly basis to an
"Elected Team" made up of representatives of all three local
governments.
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 12 OCTOBER 24,2011
Figure #1: Diversified Economic Areas
2011 Joint Economic Strategy
Poi Ta nsend
Diversified Economic Areas
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1.5: As governments that conduct open competitive procurement, our goal will be to
advertise and "buy local" and "hire local" when possible.
1.6: Adequately fund the designated Associate Development Organization (ADO),
and to establish specific responsibilities and performance measures for the ADO
to ensure that taxpayers obtain good value for their investment.
1.7: Focus economic development energies towards retaining existing businesses
over the next five years, rather than recruiting new businesses.
1.8: Inventory land available for different types of specific development and use and
prepare a strategy to direct development to locations provided with the
infrastructure appropriate to support the desired activity.
1.9: Support the ADO in providing access to business management expertisefor new
and growing businesses.
1.10: Work together to ensure that affordable, high bandwidth, internet-service is made
available countywide.
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 13 OCTOBER 24,2011
1.11: Share business license data and maintain a shared database of businesses in
our community.
1.12: Invest in developing the talent in our local workforce.
1.12.1 Participate in efforts to secure funding for additional workforce training
programs.
1.12.2 Develop and fund youth entrepreneur summer programs (e.g.,
summer internships and apprenticeships).
1.13: Identify complimentary "quick start" projects for each jurisdiction to pursue. This
will allow us to coordinate our capital projects in a manner that supports
economic development countywide. Agree upon key infrastructure priorities in
the north, central, and south county, which may include the following:
1.13.1 The provision of water and fire flow to key areas of the south county
(e.g., Quilcene);
1.13.2 Establishment of a passenger only ferry (PoF) service to the Seattle
area;
1.13.3 Efforts of the Public Development Authority (PDA) to restore buildings
at Fort Worden State Park; and
1.13.4 The provision of industrial space throughout the county.
1.14 Build a long-term institutional culture of County, City and Port economic
development and coordination. To this end, the parties agree to take the
following actions that foster a long-term culture of inter-jurisdictional
collaboration:
1.14.1 Work with the ADO create a "rapid response and business retention
team" to assist existing and prospective businesses identify
potential site locations, available infrastructure, and permitting
requirements.
1.14.2 Jointly host annual "economic summits" to share ideas about how
to improve and develop local business, infrastructure, the local
workforce, and the health and well-being of the community.
Objective #2: Establish medium-term strategies that set the stage for future economic
successes.
2.1: Promote an economic future that lies in niche-based, high intellectual content
manufacturing, services and innovation.
2.2: Support educational excellence and workforce training as critically important to
our economic future. To this end:
2.2.1 Support adequate funding for our school districts and the provision of high
quality educational programs that advance opportunities for student
achievement; and
2.2.2 Support vocational and life-long learning programs that enrich lives and
sustain our local economy.
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 14 OCTOBER 24, 2011
2.3: Encourage the growth of the following "high priority" components of our local
economy:
2.3.1 High technology (i.e., innovation and knowledge based businesses);
2.3.2 Amenity-based businesses (i.e., tourism, arts and culture);
2.3.3 Small manufacturing (e.g., maritime-related) and
2.3.4 Agriculture.
2.4: Provide critical pieces of infrastructure that enable us to more fully participate in
larger economic markets without compromising our special community character.
2.4.1 Develop and maintain a short list of key infrastructure projects; and
2.4.2 Actively collaborate to complete selected priority projects over the next
five years.
2.5: Jointly explore and support innovative ways to increase access to local capital
(e.g., micro loans, bonding, tax incentives and grants).
2.6: Coordinate marketing efforts and brand our community as great place for young
families.
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 15 OCTOBER 24, 2011
V. Joint Regional Economic Development Projects
PROJECT DESCRIPTIONS
Working together the County, City and Port havedeveloped a list of Regional Economic
Development Projects: 14 capital projects and 8 policy initiatives. Brief descriptions of
these projects are provided below.
Regional Capital Projects
Broadband - Install fiber and wireless high speed internet to 36 anchor institutions, then
private ISP's.
Fort Worden Life Long Learning Center- Support the implementation of the adopted
Fort Worden Master Plan that will transform the park into a Center for Life-long
Learning. As a Life-long Learning Center, Fort Worden State Park would house a
variety of tenants and groups that would offer residential programs and classes.
Boat Haven Marine Trades Building —Redevelop the prior Port Townsend Lumber site
within the Port Townsend Boat Haven to accommodate a new purpose built, multiple
tenant marine trades building.
Passenger Only Ferry Service (PoF) -Fund and establish a PoF service between Port
Townsend and Seattle. Recently obtained federal funding enables vessel purchase,
and Point Hudson terminal improvements. The project would establish a direct maritime
transportation link between Jefferson County and the Seattle metro area, facilitating
both business connections for Jefferson County residents and enhanced visitor access
by Seattleites to Port Townsend.
Port Hadlock UGA Wastewater System -Final system design, land acquisition, and
installation of wastewater collection and treatment facilities for the UGA. Upon
completion, the project is expected to provide increased opportunities for affordable
housing as well as commercial activity to help recapture retail sales leakage.
JCIA/EPF Eco-Industrial Park Permitting & Infrastructure -Final design, permitting
and construction of up to 10 lease-able light industrial lots in a park-like setting,
provided with all necessary rural infrastructure. At full build-out and occupancy, the new
Eco-Industrial Park would provide the space for the private sector to create 50-100+
new manufacturing jobs in East Jefferson County.
Regional Policy Initiatives
"Small Business Rapid Response Team" - Establishment of a team to help open
doors for local businesses considering locating or expanding in the County or City; the
team would provide assistance and support to businesses in securing regulatory
approvals from the County or City. The team is intended to deliver the message that
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 16 OCTOBER 24, 2011
Jefferson County, the City of Port Townsend, and the Port of Port Townsend are open
and welcoming to new and expanding businesses.
Permit Streamlining Review & Assessment - Critical review and, if necessary,
amendment to local permit processing regulations to ensure that development
applications are processed in the most fair, timely and predictable manner possible, and
that delays and confusion of process do not act as a disincentive to business.
Business Leader "Blue Ribbon" Committee -Convene a "Blue Ribbon" Committee of
local business leaders (with an emphasis on manufacturing) to study and provide non-
binding recommendations to local government regarding the specific land use and
infrastructure needs of businesses. The findings of the committee would be factored
into the Glen Cove potential UGA expansion study (see below), as well as the ongoing
periodic reviews and assessments of local plans and zoning codes, with a view towards
streamlining and easing the development review and permitting process.
Glen Cove UGA Expansion Study -Establish the analytical and infrastructure planning
foundation for expansion of the Port Townsend UGA into Glen Cove. The study would
likely not be initiated for a period of years, pending a strengthening of the local
economy. Making better use of available industrial land in Glen Cove through
redevelopment and intensified use, as well as creating new fully served industrial land,
is critical to our economic future; in time, the project could result in significant new
opportunities for businesses, as well as expansion of existing enterprises.
Water Supply & Demand Study -Examine opportunities to address water
supply/demand issues in WRIA 17.A reliable secure water supply is essential for
residential, commercial and industrial activities including agricultural production.
Education Initiative -Working with local School Districts, private schools, the Jefferson
Higher Education Committee and other local and state agencies, the City, County and
Port participate as founding partners in the Jefferson County Educational Partnership
(JCEP). The JCEP acknowledges that a strong educational system is directly linked to
a healthy local economy. The JCEP seeks to inspire civic involvement by building
partnerships and engaging in activities that benefit the community.The JCEP is
committed to helping students become competent, creative and constructive citizens of
our community. The JCEP believes that strong public sector and business support for
education makes schools more effective and society more prosperous.The members of
the JCEP shares resources with students and schools in the following ways:
Y Providing real-world learning experiences;
O Supporting teachers;
• Offering opportunities for students and teachers to volunteer in support of non-
profit institutions; and
• Preparing students for the workforce through internships, mentorships, and '...
career education.
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 17 OCTOBER 24, 2011
Healthcare Needs Assessment - The next few years will be times of considerable
stress on health care in areas like Jefferson County, but also times of great opportunity,
since across the country there are already impressive examples of high-quality care,
tailored to the distinctive needs of the local exurban and rural communities. The City,
County and Port will assist the Hospital District in assessing both medium and long term
health care needs facing our community through coordinated demographic analysis and
focused population forecasting.
Non-Profit Shared Operations Initiative- Acknowledging the importance of
educational not-for-profit's (i.e. Centrum, School of Wooden Boat Building, Jefferson
County Historical Society) to both the quality of life and economic vitality of the County
and to enhance their continued economic viability, the City, County and Port agree to
encourage and assist in the development of a shared services model of operations.
Shared services are defined as physical resources, staff, and programs which are
governed and allocated over traditional organizational boundaries.
PROJECT EVALUATION
The projects were evaluated against the six criteria described below to assess their
potential to improve local economic conditions.
1. Quick Action —with preference for projects that would have an immediate or
near term impact over those with longer term or less certain timelines for
implementation.
2. Direct Impact—with projects creating long-term jobs or tax base directly in
proximity to the location of the planned project favored over alternatives where
impacts are indirect (or cannot be as clearly tied to the public project investment).
3. Jobs —with emphasis on projects that create net added permanent employment
or are deemed critically important to retain existing jobs.
4. Priority Target— meaning investments that can leverage high priority economic
sectors, high wages and /or added taxable property valuation. [Note: High
priority economic sectors have been defined by the draft Joint Economic
Development Strategy to include high technology (innovation and knowledge
based businesses); amenity based businesses (i.e., tourism arts and culture);
small manufacturing (e.g., maritime related); and agriculture.]
5. Private Interest— indicated by projects with demonstrated capacity to leverage
private investment and/or have clear expressions of business community
support.
6. Community Support— indicated through adoption or official endorsement of the
project by elected representatives of the County, City and/or Port, or as
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 18 OCTOBER 24, 2011
demonstrated via clear community support through a public planning hearing
process.
Each project was evaluated and scored on a three level rating system, as follows:
® = Definite / Very Likely
o = Possible / Uncertain
X = Not Likely/ Tangential
A more detailed description of how the evaluation criteria and rating system has been
applied is provided in Figure #2, below.The table on page 20evaluates and ranks the
Joint Regional Projects.
Figure #2
ECONOMIC DEVELOPMENT PROJECTS: RATING SYSTEM
Rating Quick Action Direct Jobs Priority Private Community
Scheme Impact Target Interest Support
•=Definite 1 Ready for Direct(at the Definite new or Definite targeted Definitely Adopted by
Very Likely immediate project site or in retained sector or high leverages elected body or
implementation immediate permanent jobs wage and property private with clear source
proximity to the value investment or of public support
investment) with clear noted
source of public
support noted
o =Possible/ Long-term Indirect(located Job likelihood Possible targeted Possibly Possible public
Uncertain implementation away from the uncertain or of sector or high leverages support and/or
investment as temporary wage and property private inclusion in plan
spillover benefit) duration value investment or document
supported by
business
community
X=Not Likely/ As yet uncertain Tangential or no Unlikely new or Unlikely target or Neither Definite lack of
Tangential apparent retained high leverages public support or
linkage permanent jobs wage/valuation private clear opposition
investment nor from affected
engenders public
business
community
support
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 19 OCTOBER 24, 2011
Figure #3: Project Evaluation & Ranking
JOINT REGIONAL EVALUATION CRITERIA COMMENTS
PROJECT LISTING (including needs for
•=Definite/Very Likely additional information)
o =Possible/Uncertain Quick Direct Jobs Priority Private Community
X=Not Likely/Tangential Action Impact Target Interest Support
Potential Capital Projects
Broadband Question of implementation
timeframe
Fort Worden Life-Long $1 million in public&private
Learning Center funding with adopted master plan
Boat Haven Marine Trades Supported by local marine trades
Building
Passenger Only Ferry Service $1.304 million in federal funding
(PoF) secured;noted in City/County
Comp Plans&Port Strategic
Plan
Port Hadlock UGA Wastewater Potential for added commercial
System to reduce retail sales leakage
JCIA/EPF Eco-Industrial Park May need to be scaled or phased
Permitting&Infrastructure to the pace of anticipated or
demonstrated business demand
Potential Policy Initiatives
"Small Business Rapid Prior community input,potential
Response Team" for quick implementation
Permit Streamlining Review& Economic Development Forums
Assessment suggest community support
Business Leader"Blue Ribbon" Policy rationale w/Port Strategic
Committee Plan;could be used to verify or
prioritize proposed projects,
possibly expanded to City/County
Glen Cove UGA Expansion Need for a coordinated public
Study process to determine support
"Incubator"Space Identification Facilitates entrepreneurship;
Study public support not yet determined
Water Supply&Demand Study Nature of project/program
uncertain from current
description
Education Initiative
Healthcare Needs Assessment
Non-Profit Shared Operations
Initiative
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 20 OCTOBER 24,2011
V. Implementation
The success of this strategy requires alignment of goals and funding priorities between
the three partner jurisdictions. The County, City and Port will collaborate with the
designated Associate Development Organization (ADO) and private sector partners
throughout the community to implement this Strategy. Oversight and implementation of
the Strategy will be managed by a Working Group of Elected officials, comprised of one
elected official from each of the three partner jurisdictions, in consultation with the ADO,
as described below.
Elected Officials Working Group - Made of up one elected official from the Board of
County Commissioners, City Council and Port Commission, the Working Group will
oversee the implementation of the Strategy and assess the collective progress of the
three jurisdictions in meeting the objectives of the Strategy.
Inter-Jurisdictional Staff Team — Comprised of the County Administrator, City Manager,
the Port Executive Director, the Executive Director of the ADO and their respective
staffs, the Inter-Jurisdictional Staff Team will meet monthly to inform each other of
significant issues that may affect the other jurisdictions, and to work to implement the
objectives and high priority projects outlined in this Strategy.
Associate Development Organization (ADO) — the ADO will attend and participate in all
Elected Officials Working Group and Inter-Jurisdictional Staff Team meetings, ensuring
that local business community interests are represented, and providing facilitation
support and meeting moderation, as may be appropriate.
JOINT ECONOMIC INTEGRATED STAFF DRAFT
DEVELOPMENT STRATEGY 21 OCTOBER 24,2011