CITY OF BELLINGHAM, WASHINGTON
Council Chambers Monday, March 02, 2009, 06:30 PM Book: 63, Page: 1
AB18335 REPORTS FROM ECONOMIC DEVELOPMENT AGENCIES:
1. Technology Alliance Group [TAG] Anna Ehnmark, Executive Director: Definition of “Technology based industry” State of Technology in Whatcom County Technology-based Industries in Whatcom County Local Technology Employers Science & Engineering Occupations in demand Average Wages in Technology-based Occupations · Bellingham ranks 6th in the state for average tech wages Whatcom County Patent Activity R&D Resources at Bellingham's Colleges University Research Capacity · Grant activity at WWU is growing Paul Grey, Board of Directors; Grey Consulting: Investment capacity Local “Clean Energy” Pioneers Local Clean Tech Success Stories TAG needs assessment survey in 2007 · 45% consider taxation to have a negative or very negative effect on their opportunity to grow their business · 44% had a neutral view. · 40% rated 'Permitting and Planning' as having a negative effect on their business · 44% had a neutral view and 8% were positive. · 85% rated telecommunications as positive or very positive · 38% report a negative or very negative view on the access to qualified employees Recommendations for the City: Ø “Business friendly” - Attitude & Action § How can we help? § Town hall meetings § Streamline permitting process § Appoint a City Business Ambassador § Bring back “Think Bellingham” Ø Respond to businesses with high-wage jobs Ø Support NCTID and WIZ initiatives – long term investment, not just 'shovel-ready' projects Ø Waterfront District – work toward some early bus. successes Ø Support development of clean technology Ø Sustainable Strategies Council - help identify game plan Ø B&O taxes an issue for some and not a business friendly factor, especially for start ups. Conclusion: Technology based industry not recession proof but more resistant Export oriented companies depend on global market demand and not local economy Short term performance depends on whether company is in the market of 'selling pain pills or vitamin pills' TAG similar to its members had to tighten its belt Dominance of employment in educational services and government helps keep unemployment rate low Downturn/ recession necessary readjustment Focus on sustainable growth 2. Sustainable Connections Michelle Long, Executive Director: Local businesses working to transform and model an economy built on sustainable practices. Description of Sustainable Connections approach to community and economic development 21st Century economic development · Green building and smart growth · Food and farming · Energy efficiency and renewable · Sustainable business development · Think local first How is Sustainable Connections faring in these challenging economic times? · Fair in financial measures · Good in performance measures § Entrepreneurial and frugal § Membership growth is continuing § Shifting of the budget “pie” o some decreasing 'wedges' (government), o some increasing 'wedges' - increased demand related to green jobs and sustainable industries How are members fairing? · They are facing challenges · Relatively, better positioned than State/Nation § More jobs with local companies § More companies succeeding past start up § Better un-employment figures than the rest of Washington § Sustainable Connections' assessment of short and long term financial outlook locally · Annual Business Survey of Sustainable Connections nearly 700 local business members § 27% in business 3 years or less § 32% in business 15 years or more § Every industry represented: 5% manufacturing, 15% design & construction, 10% health care, 10% grocery/ restaurant, 15% other retail, 3% technology, 14% farm/food production, 12% n-p and education, 13% services § Expectation re the overall economic conditions in Whatcom County to be twelve months from now? o Better = 33% o Same = 26% o Worse = 41% § Over the next 12 months, do you expect your business' financial position to: o Improve = 50% o Remain the same = 33% o Worsen = 17% Recommendations for the City: Ø Keep local businesses strong Ø Continue to make decisions that keep our Quality of Life high…we don't want fear leading to decisions that jeopardize the “goose” Ø Invest in economic growth areas where we are well positioned: green jobs and sustainable industries Ø Think local first · Continued promotion of, and procurement from, “locals” Ø Support services for startup entrepreneurs · Business planning for new entrepreneurs · Business planning support/research Ø Invest in economic growth areas where we are well positioned: · Green jobs and sustainable industries Ø Support Community Energy Challenge and green jobs program Ø Green building services Ø Whatcom farm incubator project Ø Coordinated plan to communicate our community's leadership · Highlight leadership and successes - not just gloom and doom · Sustainability Strategies Council: What would it take for this community to be a national center of excellence for sustainable industries and green jobs within five years? · Boldly putting our stake in the ground – finding our theme and leveraging it! 3. Center For Economic Vitality (formerly SBDC) Tom Dorr, Director: SBDC name change and rebranding Work of and measurable impacts of the Center for Economic Vitality [Center] Counseling and Research services Effects of Economic Downturn on Center § 35% decrease in funding · Center, Port, County, Cities · Looking for other sources of funding § Not filling vacant counselor position (5 to 4) · 2009: Loss of 100 businesses supported and 1000 hrs § WWU budget cuts · No impact on counseling · Affects access to faculty, support resources · Other impacts unknown right now Effects of Economic Downturn on Center on clients § Influx of clients not seen in years § Old clients suddenly hurting § Layoffs last resort § Access to capital (tightening criteria, types of loans) § Comparable number of start-ups § Looking for new markets (international) § Not all doom and gloom (good news) Financial outlook on economy § Local economy better than most · Though worse than we've ever been · Expect increased layoffs · Consumer confidence · Access to capital § Recessions not all bad · Removes marginal businesses · Forces good businesses to assess internally o Planning, planning, planning § Short Term · Increased layoffs for next 6-8 months · Access to credit o Changing loan criteria from banks § Long Term · Bounce back quicker o 2010 Olympics, Waterfront redevelopment, diverse economy Center's plans to help the economy § Seminars (with all ED organizations) § Technical assistance / counseling with problem solving § Meeting with all commercial banks in next 60 days § Promote success stories § Proactive research Recommendations to the City Ø Consider support for a microloan program Ø Commercial and light industrial land supply: impacts of rezoning Ø Reconsider the “big box store” regulations Ø Waterfront redevelopment leadership and cooperation Ø Continue planning & permitting process improvement 4. Northwest Washington Labor Council David Warren, President: Mission of the Northwest Washington Central Labor Council, AFL-CIO Core responsibilities of the Labor Council Description of its membership How is the organization and membership fairing in these challenging times? Poorly; Membership is anxious and downright scared Labor Council assessment of short and long term financial outlook? Not optimistic in the short term Many rays of optimism for the long term Recommendations to the City Ø Operate on budget realities Ø Position the City for new opportunities · Waterfront development · Green industry Ø Caution regarding traps of big box stores and their labor practices Conclusion City has demonstrated its ability to invest in the community through bold projects such as the Art and Children's museum. Together we can meet these challenges. 5. Bellingham-Whatcom Economic Development Council [EDC] Nancy Jordan, Executive Director: Economic outlook – Short term § Some additional economic contraction through 2009 § Businesses are actively seeking: · Information, resources & tools, counseling and connections · Capital · Qualified workers to fill key positions § Waiting for stability and a return of confidence Economic outlook – Long term § Private sector investment will lead to recovery of jobs and commerce § A number of layoffs will trigger significant increased new business startups § Clear community and regional objectives, strategies and targets will guide coordinated recovery efforts and future economic opportunity § Data from the investment community is that economy will likely turn up in late 2009 or 2010 EDC providing education, training and resources and pursuing a regional economic strategy: § Asset Map – Understand who we are · 95% of EDC BrandPromise survey respondents want a regional strategy § Incorporate Diverse Viewpoints · Private sector – urban/rural, small/medium/large employers, industry sectors, etc. · Advisory teams such as City Technicians, Practitioners, Small Cities Partnership, EDC Board & Advisory Teams, etc. § Implementation · Identify goals and objectives – Seek and create new initiatives (i.e., TAG, WTIA, NCTID, SCORE, NW Workforce Council, etc.) · Assign roles and responsibilities with performance measures · Include strategies that implement desired growth and preserve patterns (i.e., Comp Plan) · Solid leadership needed for successful implementation § Expanding opportunities for applied innovation § Expanding Relationships and Initiatives: · Industry Sectors o Marine – Waterfront Innovation Zone o Farm Friends & NW Ag Business Center – Regional Food Processing Facility o Technology – TAG and NCTID (NW Consortium for Technological Innovation and Development ) o Alternative Energy – Farm Power · Entrepreneur/Skills & Business Resources o Expand training – early childhood to 'Boomers' o Expand Revolving Loan Fund(s) o Incubator · Infrastructure o Communications § Explore new options § Prepare for the unknown § Continue to provide Associate Development Organization services § Listen to members and respond Recommendations to the City Ø Listen to all sectors of existing businesses and community leaders Ø Secure funding opportunities for jobs and commerce · Federal – EDA, USDA, Stimulus funds, etc · State – CERB, Rural Development, etc · Alternative lending – ShoreBank Enterprises, EDC Revolving Loan Fund, etc. Ø Prepare for the future: · Understand local community in 21st Century (asset map) · Clearly identify long-term goals, strategies and targets (regional strategies) – and how to pay for them Ø Increase awareness and collaboration to grow and attract the 'right' economic opportunities Ø Increase predictability of planning and permitting for business to invest in capital assets and jobs Ø Work with NW Workforce Council, Centers of Higher Education, K-12 and Early Childhood Learning to assure availability of a trained and adaptable workforce Ø Work with neighboring jurisdictions, citizens and business community to assure sufficient infrastructure and suitable choices of available zoned lands for desired jobs and commerce 6. Downtown Bellingham Partnership (formerly DRN) Leslie Langdon, Board member: Downtown Bellingham experience § Vibrant atmosphere § Variety of attractions § Inviting appearance § Prime business location § Visitor destination § Urban residential setting § Important source of community identity Downtown revitalization means economic development § Attracts new businesses § Encourages entrepreneurism § Creates jobs § Increases sales tax revenue § Offers local investment opportunities § Profits from local businesses circulate within the local economy Downtown Bellingham Partnership programs: § A Clean & Welcoming City Center · Sidewalk Maintenance · Landscaping § Downtown Promotion · Special Events · Marketing · DowntownBellingham.com § Advocates · Waterfront Redevelopment, Transportation, Safety, Design Description of membership Mike Smith, Board member: He explained a membership survey of 160 businesses, property owners, organizations and individuals with an interest in improving Downtown Bellingham which asked the following questions, and reported on the responses: Number of membership employees – graph Compared to last year at this time, how is your business doing? § 28% - About the same § 9% - Up less than 10% § 6% - Up more than 10% § 11% - Down less than 10% § 34% Down more than 10% Have you restructured your workforce in the past six months § 46% - No § 16% - Yes, through layoffs § 30% - Yes, through reduced hours and/or benefits, or attrition § 8% - I am currently considering restructuring Members listed barriers to be: § Lower traffic/sales § Parking § National websites § Consumer confidence How DBP can assist Downtown § Encourage a strong sense of community § Promote downtown - marketing & events § Maintenance & Beautification Programs § Advocate § Networking and communications § Collaborate Recommendation to City – issues to address: Ø Parking Ø Public safety Ø Support downtown programs Ø Waterfront redevelopment Ø Permits Ø Empty storefronts 7. Bellingham/Whatcom County Tourism Bureau Lani Rahm, President and CEO: Direct county-wide traveler spending in Whatcom County is $453.7 million Local jobs generated by tourism: 6,820 Whatcom County Visitors Contribute: § $7.1 million in local taxes § $25.2 million in state taxes The role of Bellingham Whatcom County Tourism § Economic development through tourism § Time and resources invested exclusively in tourism marketing activities, products, and services § Three distinct markets: geographic proximity, special interest/niche, groups Recommendations to City: Ø Take advantage of opportunities provided by 2010 Olympics Ø Improve the process for getting businesses started in Bellingham – make it more business-friendly so we are ready for the boom times Ø Improve the product – get moving on waterfront improvement. · Keep up maintenance of parks and trails. · Create a beautification program that gets rid of garbage, weeds and other debris. · Beautify the entrances to the city · Restrict tent camps and panhandling Ø Improve and reward collaborative efforts and partnerships 8. Bellingham/Whatcom Chamber Of Commerce & Industry Ken Oplinger, President & CEO: How is your organization and membership fairing in these challenging economic times? § Net membership up 10% in last six months. § Event sponsorships up close to 25% in last year. § Business community sees bottom-line benefit in being a member Five core competencies of the Chamber § Creating a Strong Local Economy § Providing Networking Opportunities § Promoting the Community § Representing the Interests of the Business Community with Government § Facilitating Factually-Grounded Dialogue with The Business Community Assessment of short term and long term financial outlook in the local economy § Short Term: · Through Fall 2009: Continuing Year-Over-Year drops in Retail Sales and B&O Tax Revenue. · Unemployment continues to rise (10% ceiling could be broken). · Most Businesses contracting in capital spending and payroll. · BLI Traffic will continue to rise. · Border Crossings will hold steady this year. § Long Term: · 2009 Holiday shopping season will rebound, should see increase from 2008 (but still nowhere near 2007) · Unemployment will remain high compared to the last several years, but should begin to see some drop in 2010. · Increase in Canadian companies looking to expand into Whatcom County. · Tourism should increase substantially starting summer 2009 and continuing for following two years. Recommendations to City: Ø Develop Economic Development Goals · What do you want to accomplish? · Do you want to accomplish them, or is an organization coming and asking you for money to accomplish something you didn't ask for? · How are you measuring results? Are they the results you wanted, or the results someone else wanted? · Once you've done this, spend your money on only those things that will get you to those goals. · Be more proactive, especially in those areas where you can be most effective. Ø Provide more support for training · Even in this environment, skilled labor is hard to come by in Whatcom County. · Prepare now to ensure this problem does not further pull down our potential once the recovery comes. Ø Use this opportunity to address the chronic issues with the Planning Department · If you were to designing the department today, what would it look like? What steps must be taken to get it there? · What is the purpose of the department? Is that purpose common knowledge amongst staff members? · Much can be accomplished by changing the mission from “NO” to “YES”. Ø Use this opportunity to ensure you can accommodate business growth · Could a clean industrial business move here today, or would they have to build in Ferndale? Ø Hear from voices that challenge you. · Progressives want to hear from all sides, and find a solution with the best possible information. Don't get captured by certain organizations or points of view. · City Administration has shown tremendous improvement in this front since Mayor Pike took office, and The Chamber is very thankful. · No one wants Bellingham to look like “Anywhere USA.” COMMENTS BY HART HODGES, Ph.D.
Dr. Hodges reflected on the previous speakers presentations and suggested a discussion session in the near future to determine what can be done by the city. Focus should be placed upon regional planning; a well trained workforce; planning and permitting; business location; clear priorities and performance measures. He proposed the use of students to gather information. Students could follow the money and provide Council a report. What you fund and who you fund matters. Demand performance. Do not permit a lack of consistency - demand collaboration and quality. He wondered how the presentation tonight would have been different if all the agencies had been asked to work together on one consolidated report. There needs to be agreement regarding the definition of terms so there is consistency in research and reporting. Dr. Hodges' top three recommendations to Council: (1) Set up workforce discussion sessions; (2) create an economic development plan and receive a regular report; and (3) demand higher standards of quality.
COMMENTS BY HÉCTOR SÁEZ, Ph.D.
Dr. Sáez stated that he has lived in communities very much like Bellingham. The issue of cooperation and coordination between economic actors, business and government and NGOs need to be explored. It is important to maintain the high quality of life to attract skilled labor. There needs to be a business-friendly environment, but quality of life is key. City Council can take additional steps to develop norms of business responsibility and reciprocity. Council should not abandon the ability to create positive and negative incentives for business to move to Bellingham. Develop norms first and then positive and negative incentives. He noted Paul Grey's remark that economic development is about “ideas, talent and capital.” However, that only addresses the supply side. The demand side is about disposable income; confidence; access to credit; marketing the City; quality of life including health care; and public services. In regard to the comments related to negative feelings about permitting and planning; people need to understand why it is necessary. Partner with businesses regarding permitting. While there is debate about Big Box stores, the City could relax regulations in negotiation for other things the city wants. Make sure they reinvest in the community. He referred to Tom Dorr's statement about companies being reluctant to lay off workers and that some wait until too late. Layoffs are necessary, even under normal growth circumstances as changes occur. There are tools that businesses and governments can develop to cope with workforce issues. For instance, Ventura County negotiated with workers to take a reduced work week for a period of time to save a number of jobs. This started with a workforce analysis which determined critical services and critical people. Multi county strategies are good but must be clearly in line with norms you develop. COMMENTS BY MAYOR PIKE
Mayor Pike commented on the great resources available in the community through the participants making presentation. The City could always do better. The City has done targeted, measured budget cuts. There is a wisdom to maintaining capacity both to moderate the fall in the economy and to accelerate the way out of the recession in anticipation of the rebound. It is important to identify where the resources are in the community to offset the loss of publicly funded services. The City needs to partner with agencies to help secure grants and other sources of funding to supplement the cuts they have absorbed. It is important to celebrate the successes the City has achieved. He noted there was much going on in the arena of the waterfront work. There should be good news on Wednesday. He spoke about health care initiative opportunities beneficial to the community. Mayor Pike noted that the City has been working to improve the attitude of the administration toward business. The problems today are challenging. Some businesses are a good fit, some are not. It is important to make an effort to be intentional about who we want to attract - green jobs, family wages and benefits. Consider the effects on the multipliers so there is a net positive instead of a net negative to the economy. The administration is trying to be thoughtful about the approaches, trying to find opportunities to be complementary to the organizations in the community to leverage the resources that others are already providing. There is good partnering of Council with the administration and across jurisdictions. COUNCIL QUESTION AND ANSWER PERIOD
Louise Bjornson referred to comments regarding city beautification and suggested properties along the freeway could plant trees. She noted how nice the new building on State and Holly is and gave kudos to Tim Stewart for working with the property owner to achieve that. She asked about what workforce training programs there in Bellingham and what groups are working together and what can be improved in this area. Alex Kosmides of the Northwest Workforce Council addressed the question. He stated there has been a huge change in the last six months from trying to find people for jobs to trying to find jobs for people. Whatcom Community College and Bellingham Technical College fill up when times are bad. State revenue is down and there is less and less room in the stimulus package. The current stimulus package returns the Workforce Council to the levels of funding it had 4-5 years ago. They are continuing to work with both of the colleges and with employers who have the capacity to do their own training and cross training. He looks forward to the Workforce Summit proposed earlier. Ms. Bjornson asked Nancy Jordan about the Revolving Loan Fund program. Ms. Jordan explained the redevelopment of this program. It is active right now and looking to expand. Uses such as alternative energy, innovations and other businesses. Gene Knutson thanked the participants and gave appreciation for the inclusion of the Labor Council. They represent the everyday lives of people trying to provide food and clothes for their families. He suggested there should be more than one of these summits each year. Barbara Ryan raised the idea of the city's own perspectives regarding economic development strategies and recalled that a plan was discussed a few years ago. It has been assumed that the people who were experts on economic development were creating the vision and programs. The City's job was to support those experts who knew best. It is interesting to hear people now saying that the City isn't demanding enough and needs to have its own ideas about what kind of economic development it wants to see. An effort to develop and economic strategy and regional plan will take some time and resources. There are not a lot of resources for a new initiative. She expressed Council should think more about it so they can be targeted in the efforts that can be supported with a limited about of funding. Barry Buchanan proposed the next step is to create some sector-specific worksessions. He reported a conversation with Ken Oplinger about forming a coalition of education and industry to work with some of the research available from Western and get that information out to the businesses. Mr. Bornemann thanked all the participants. Council receives many comments from the community about what is going on. There are questions about what is real and what is not real about the local economy. Bellingham has a lot going for it. There is potential to come out of the recession much quicker than the rest of the nation. Communication needs to continue through forums like this. ADJOURNMENT There being no further business, the meeting adjourned at 9:38 PM. Barry Buchanan, Council President ATTEST: J. Lynne Walker, Legislative Coordinator APPROVED: 05/20/2009
