2016 Comp Plan Economic Development Chapter - Cob

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Bellingham Comprehensive PlanEconomic Development Chapter2016Photo by Buff Black

Bellingham Comprehensive Plan 2016Economic Development ChapterI. IntroductionThe City of Bellingham has long recognized the benefits of a strong and diverse local economy. TheCity's Visions for Bellingham community goal-setting process completed in the early 1990sacknowledged the importance of sustainable economic growth in a series of goal statements thatbecame the basis for the 1995 Comprehensive Plan. Additional goals and policies were added to thevisions in the 2006 Comprehensive Plan as a result of additional community workshops; however,neither of these earlier versions of the plan had a chapter devoted solely to economic development.In 2013, the Economic Development Chapter was added to the Comprehensive Plan to identify goalsand policies to help achieve the Legacies.What is Economic Development?No single definition incorporates the many aspects of economic development. It is typically describedas the creation of jobs and wealth and the improvement of quality of life for all residents.Economic development can also be described as a process that influences the growth andrestructuring of an economy to enhance the economic well-being of a community – its citizens,businesses and government. Economic development activities can help existing and new businessesreach their goals. Economic development programs do not directly create jobs; businesses do. Evenso, the City can play an important role in providing a positive environment within which economicopportunities can thrive (see "The City's Role in Economic Development" section).The main goal of economic development is to improve the economic and social well-being of acommunity through efforts that encourage the creation and retention of jobs, enhance the tax baseand improve the quality of life. There is no single strategy, policy or program for achieving successfuleconomic development.Although definitions, policies and strategies differ, itis clear that without a strong, diverse andsustainable economy, the outstanding public safetyagencies, cultural amenities, recreational facilitiesand other services provided by the City will becomeincreasingly difficult to sustain. While citiestypically have a somewhat limited role in economicdevelopment activities, the City does have theability (and the responsibility) to protect andenhance the “livability” attributes of Bellingham– the parks, trails, open spaces, libraries, playfields,historic buildings, successful downtown, diverseneighborhoods, excellent public safety services andhealthy natural environment. Maintaining theseassets is critically important in attracting andretaining employers and a talented, educatedworkforce.The Granary building will be repurposed into amixed-use building as part of the first phase ofredevelopment of the Waterfront District. Photo byAngelica Orozco.The City can also take the lead in ensuring that economic growth is balanced with other communityvalues of environmental quality and social equity. Implicit in this concept is the development of ameasurement system. Through the annual "Performance Measures Program", the City uses aseries of measurable attributes ("metrics") to track achievement of a variety of economic,Page 1 of 20November 14, 2016

Bellingham Comprehensive Plan 2016Economic Development Chapterenvironmental, social and other community goals. It is important that this program continue and beenhanced as a way for the City to monitor progress toward achieving the economic development andother goals in the Comprehensive Plan.Coordinated Economic Development ActivitiesIn Bellingham and Whatcom County, various agencies, both private and public, are dedicated toeconomic development activities. The City can provide leadership to support this effort by working toenhance coordination and communication between agencies and organizations.Economic development is not an isolated activity within the borders of a city and can be affected byevents occurring at the county, state, national or international levels. To be successful, economicdevelopment activities must be carried out through partnerships with other governments andagencies.The City partners with numerous agencies throughout Whatcom County to provide workforce andeconomic and community development services that enhance Bellingham's economic vitality. Thesepartnerships offer opportunities for coordination and synergy.The purpose of this chapter is to:1. Highlight and elaborate upon the City’s Legacy commitment to create a “vibrant, sustainableeconomy”.2. Identify the City’s role in economic development activities.3. Provide a framework for the City's Economic Development Strategic Action Plan (EDSAP).The City's Role in Economic DevelopmentThe City's PRIMARY ROLES in economic development activities include:ROLE 1: Provide strong LEADERSHIP to create a POSITIVE ENVIRONMENT, both physical andsocial, that supports business activity and a high quality of life for employees andresidents. Examples of potential activities: Periodically review the Economic Development Strategic Action Plan to prioritize andhelp achieve the City's economic development goals, policies and Legacies andStrategic Commitments (see "Positive Business Climate" section). Support agencies with missions explicitly directed at economic developmentactivities and improving the business climate. Continue to provide and support high quality amenities that make Bellingham adesirable place to live and do business.ROLE 2: Ensure that there is enough properly zoned, developable LAND and INFRASTRUCTURECAPACITY to accommodate the expected 20-year employment growth. Examples ofpotential activities: Periodically review and update employment lands demand and supply data. Provide and maintain high quality infrastructure to support employment lands.Page 2 of 20November 14, 2016

Bellingham Comprehensive Plan 2016Economic Development ChapterROLE 3: Provide EXCELLENT SERVICES that foster business growth and retention, and minimizeexpenses. Examples of potential activities: Provide timely, predictable and cost-effective permitting processes. Periodically assess the effects of City tax and fee policies on economic developmentgoals.Economic Development Resource DocumentsIn addition to the City Council’s adopted Legacies and Strategic Commitments, several otherdocuments provide direction for economic development efforts in Bellingham and the greaterWhatcom County region. The policies and other information in these documents informed thedevelopment of many of the goals and policies in this chapter.Examples of policy documents and additional resources include: City of Bellingham Consolidated Plan Whatcom County Comprehensive Economic Development Strategy City of Bellingham Employment Lands Study, Phases I and II Whatcom County Comprehensive PlanIn 2010, Phase I of the Regional Economic Development Strategy listed above was completed. Thereport includes the results of a business survey and series of interviews conducted by a collaborativeteam of economic development practitioners and partner agencies. The project lead was theNorthwest Economic Council in contract with Western Washington University’s (WWU) Center forEconomic and Business Research. The online survey was designed to assess the strengths andweaknesses of the business environment in Whatcom County. Roughly 400 businesses responded. Inaddition to the survey, the project team identified and interviewed 21 key business leaders, economicdevelopment professionals and City leaders. The survey results were combined with the results ofthe interviews to produce an analysis of the strengths, weaknesses, opportunities and threats (orSWOT) related to the economies of Bellingham and Whatcom County. The results of the SWOTanalysis were used in the development of this chapter (see Section IV).The SWOT assessment identified several reoccurring themes: business diversity, quality oflife/location (e.g. natural beauty, proximity to Canada, agricultural lands, employment center),infrastructure (e.g. transportation, utility, technology) and business resources (e.g. higher education,economic development organizations and nonprofits). The SWOTs are further defined and explainedunder the following five categories, which form the organizational basis for the goals and policies ofthis chapter:Positive Business ClimateEconomic DiversificationLand and InfrastructureVibrant Commercial CentersQuality of LifePage 3 of 20November 14, 2016

Bellingham Comprehensive Plan 2016Economic Development ChapterThe chapter's five goals mirror the City's Legacies and Strategic Commitments and emphasize theinterdependence of the environment, economy and society:GOAL ED-1Build and maintain a positive and competitive business-friendly climatethat will retain, grow and attract high-quality businesses.GOAL ED-2Accommodate a broad mix of employment opportunities, while activelyseeking a greater proportion of living wage jobs that will benefit a broadcross-section of Bellingham residents.GOAL ED-3Maintain an adequate supply of developable employment lands andsupporting infrastructure to accommodate forecasted growth andaccomplish the City’s economic development goals.GOAL ED-4Foster vibrant urban villages.GOAL ED-5Continue to invest in the quality of life attributes that provide the Citywith a competitive advantage in terms of economic development.Page 4 of 20November 14, 2016

Bellingham Comprehensive Plan 2016Economic Development ChapterII. Goals and PoliciesPositive Business ClimateA positive economic climate is a significant factor in business locational decisions. A mutuallybeneficial relationship between government and business is also an important component forpromoting economic development and prosperity. For the purposes of this chapter, the definition ofa positive and competitive business climate is the creation of a supportive environment for businessretention and expansion via the efficient delivery of governmental services; a cost-effective tax, feeand regulatory structure; and effective partnerships with agencies that engage in direct economicdevelopment activities. The City can promote a positive business climate in a number of ways asidentified in the following goal and policy statements.GOAL ED-1Build and maintain a positive and competitive business-friendly climate that willretain, grow and attract high-quality businesses.Policy ED-1Periodically review and assess theimpacts of the City's regulatorystructure, taxes, fees and utility ratesonBellingham'seconomicdevelopment goals and makeadjustments as appropriate.Policy ED-2Establish incentives to promoteeconomic development activity andenvironmentally-responsiblebusiness practices.Policy ED-3Recognize and consider the potentialeconomic impacts of proposed Staff at the City's permit center answer zoning andlegislative actions prior to adoption. permit questions daily.Policy ED-4Continually review and evaluate the City's permit processes in order to providetimely, cost-effective services and predictable outcomes.Policy ED-5Continue the City's Performance Measures programas a means of monitoring progress toward achievingthe economic development and other goals in theComprehensive Plan.Examples of metrics related toeconomic development includeaverage wages in WhatcomCounty, annual City sales taxreceipts and number of jobs.As stated in Section I (Introduction), this chapter of theComprehensive Plan is intended, in part, to provide the framework for the City's EconomicDevelopment Strategic Action Plan. The ED-SAP defines and prioritizes the City's activities withrespect to achieving the economic development goals and policies in the Comprehensive Plan.Policy ED-6Periodically review the ED-SAP to help achieve the City's economic developmentgoals and policies.Policy ED-7Implement the ED-SAP to encourage and stimulate business activity.Page 5 of 20November 14, 2016

Bellingham Comprehensive Plan 2016Economic Development ChapterEconomic development is regional in nature and, as a result, no single entity or agency can carry outall the necessary activities. Developing a culture of collaboration and enhanced coordination both inBellingham and among neighboring communities is important in creating a positive climate forbusinesses and for the economic well-being of the City and its residents.Policy ED-8Coordinate City activities and share resources with agencies and organizations thatprovide direct economic development and other business services such as businessretention and growth counseling, start-up assistance, recruitment, marketing, andenvironmentally-responsible business practices.Policy ED-9Aid the efforts of businessassociations to promote economicactivities and tourism.Policy ED-10 Continue to build strong workingrelationshipswithWhatcomCounty, the Port of Bellingham andthe small cities within WhatcomCounty to address regionaleconomic development issues andsupport a thriving regionaleconomy.Kayaker enjoys Bellingham Bay, with downtownand Mount Baker in the background. Photo byJamie Valenta.Policy ED-11 Provide and support initiatives thatenhance quality of life amenities,expand job training opportunities and support other economic development goalsand policies.Policy ED-12 Continue to support the expansion and infrastructure needs of Western WashingtonUniversity, Whatcom Community College,Bellingham Technical College, the BellinghamBellingham is home to severalSchool District, PeaceHealth (St. Joseph'sinstitutions of higher educationHospital medical facilities), the Port ofthat contribute new ideas andBellingham and other major employers thatinnovations, cultural offerings andoffer a diverse range of living wage jobs.training and internshipPolicy ED-13 Support the ongoing efforts of Bellingham'seducational institutions to partner and buildconnections with economic developmentagencies and local businesses.opportunities that benefitstudents and businesses. Theseinstitutions, along with the Cityand several business networks,can offer resources to businesseslarge and small.Policy ED-14 Support the efforts of business and educationalinstitutions to train workers to meet the current and future needs of local businesses.Policy ED-15 Continue to provide internships and other job training opportunities in citygovernment.Policy ED-16 Support startup efforts to make it easier for businesses to get started in Bellingham.Page 6 of 20November 14, 2016

Bellingham Comprehensive Plan 2016Economic Development ChapterPolicy ED-17 Support access to working capital and other forms of financial assistance toencourage entrepreneurship, innovation and business growth.Economic DiversificationIn Whatcom County, employment data show that the number of jobs has grown consistently since1982. Local job growth has been consistent with state and national trends - the services sectors(trade, services, government, financial, transportation) have grown over time, while goodsproduction (mining, construction, forestry, fishing and manufacturing) has decreased as a share oftotal employment.Bellingham is fortunate to be the home of a variety of large, diverse employers representing themedical/health services, education, government, light industrial, communications and retail sectors.The top 20 employers account for one out of every four jobs in Bellingham. Table 1 in Section IIIshows the top 25 employers in Whatcom County, many of which are located in Bellingham or itsunincorporated urban growth area (UGA). Section III also includes figures that illustrate the share ofjobs in Bellingham and the UGA by industry sector and compares the occupations of people living inBellingham with the remainder of Whatcom County. For more detailed information on the economyof Bellingham and Whatcom County, see the State of Washington's Employment Security Dept. andOffice of Financial Management websites and WWU's Center for Economic and Business Researchwebsite.While the City is home to a number of large employers, small businesses make up an important partof the local economy. Sixty percent of businesses in Bellingham have four or fewer employees. Thesesmall businesses account for about 12% of the total jobs in the City and UGA.What is Economic Diversification?A fundamental aspect of the "quality of life"characteristics of a city is a robust and diversifiedeconomy. A diversified economy is one thatprovides a wide variety of job opportunities invarious sectors suited to all skill levels of theworkforce. Such an economy would provideopportunities for all segments of the community,from manufacturing and marine trades to medicalresearch and high technology. A diversifiedeconomy is able to absorb inevitable marketchanges and business cycle fluctuations.Overreliance on any one sector of the economymakes a community more vulnerable to inevitablebusiness cycle downturns and market changes.Ryzex, a local company with a worldwide customerbase, employs about 150 people and sells, repairsand refurbishes new and used data collectionequipment.A strong and diverse economy is also one that provides a sustainable tax base to meet communityneeds. A robust economy is more likely to provide the revenues necessary to sustain the outstandingpublic safety agencies, unique cultural amenities, world class recreational facilities and otherfacilities and services that community members have come to expect.Economic strength also means jobs that pay a "living wage". A living wage is one that allowshouseholds to meet their basic needs for food, shelter, transportation, child care and other needs.Page 7 of 20November 14, 2016

Bellingham Comprehensive Plan 2016Economic Development ChapterThis is an especially important issue in Bellingham, where wages have typically lagged behind thoseof other cities in Washington State.Bellingham's wages have also been below the county and state averages (see Table 2, Median Familyand Household Income, in Section III). According to a recent United Way ALICE (asset limited, incomeconstrained, employed) report, ALICE households coupled with those in poverty, comprise 49%percent of Bellingham households. ALICE families are those that earn more than the U.S. povertylevel, but less than the basic cost of living for the country. At the same time, according to the Councilfor Community and Economic Research (January 2015), the cost of living in Bellingham is 17% higherthan the national average, with housing being the primary cost factor. While it is important toincrease living wage jobs, it is equally important for housing costs to be within reach and comparableto earnings (see Housing Chapter for additional information on housing affordability).On the upside, Whatcom County and Bellinghamhave not suffered the level of economic downturnfaced in other regions of the country. Local businessleaders credit the diversity of businesses as one ofthe primary reasons for Whatcom County’sresiliency. The county’s proximity to Canadaprovides a large potential customer base to supportretail sales and an ideal entry point for Canadianbusinesses to locate distribution and marketingcenters. In return, opportunities exist for WhatcomCounty businesses to export products to theCanadian market. These locational factors can PeaceHealth St. Joseph Medical Center, located incontribute to economic diversity.Bellingham, is the largest employer in WhatcomCounty.Because most of Bellingham’s future employmentgrowth will likely come from expansion of businesses that are already located here, economicdevelopment resources and activities should first be focused on retaining and growing existingbusinesses.GOAL ED-2Accommodate a broad mix of employment opportunities, while actively seeking agreater proportion of living wage jobs that will benefit a broad cross-section ofBellingham residents.Policy ED-18 Increase Bellingham’s competitive advantage in international trade by assistingCanadian businesses seeking a United States-based presence and Bellinghambusinesses seeking access to the Canadian market.Policy ED-19 Support the retention and growth of Bellingham's small businesses.Policy ED-20 Continue to lead and manage the redevelopment of City-owned properties formaximum public benefit, using public-private partnerships when appropriate.Policy ED-21 Support the Port of Bellingham's role in growing Bellingham's economy in areas suchas the waterfront and in and around the Bellingham International Airport.Page 8 of 20November 14, 2016

Bellingham Comprehensive Plan 2016Economic Development ChapterPolicy ED-22 Working with the Port of Bellingham, Whatcom County and others, explore andpursue opportunities to solicit/attract new investment and expansion frombusinesses outside the Bellingham area, both regionally and nationally.Policy ED-23 Encourage an environment supportive of entrepreneurial activities and exploremethods to encourage low-impact enterprises and emerging business models.Land and InfrastructureBellingham’s urban area (land in the City and UGA) is the main employment center for WhatcomCounty, containing approximately 65% of total countywide jobs. An adequate land supply andcorresponding infrastructure are key to growing existing businesses and creating opportunities fornew business. Of the more than 7,000 acres of vacant “employment lands” (land in the City limits andUGA with commercial, industrial, institutional or mixed-use zoning), approximately 820 acres areavailable for development, according to the 2013 Land Capacity Analysis. Critical areas and theirbuffers impact nearly half of the available acres. Additional capacity exists within the City's sevenurban villages, several of which are experiencing significant infill and redevelopment.Most of the undeveloped land is located in thenorthwest and north central portions of the Cityand UGA. Vacant land in the City has about 66% ofthe total employment capacity and the UGA landshave about 34%. About 26% of the capacity in thecurrent City limits is inside urban village areas. It isestimated that the developable land in the City andUGA can accommodate growth of about 27,300 jobs- 7,840 industrial jobs, 16,650 commercial jobs, and2,810 institutional jobs (see Employment Capacitymap). This capacity is more than adequate toaccommodate the 2036 forecast employmentgrowth of 22,641 jobs. See the Land Use Chapter(Commercial and Industrial Development SectionUndeveloped industrial land in the Cordataand Land Capacity Analysis Section) for additional Neighborhood.information on future employment capacity.Page 9 of 20November 14, 2016

Bellingham Comprehensive Plan 2016Economic Development ChapterPage 10 of 20November 14, 2016

Bellingham Comprehensive Plan 2016Economic Development ChapterBellingham’s critical infrastructure, including shipping terminals, rail, interstate highway and localstreet and utility networks, fiber-optic connectivity and truck routes, are important to many industrysectors. Business leaders interviewed as part of Phase 1 of the Regional Economic DevelopmentStrategy indicated general satisfaction with Bellingham’s transportation system. They also noted theimportance of the airport as a key link to communities outside of the Pacific Northwest and describedthe recent runway restructuring and terminal expansion projects as positive developments (seeSWOT Analysis, Section IV).GOAL ED-3Maintain an adequate supply of developable employment lands and supportinginfrastructure to accommodate forecasted growth and accomplish the City’seconomic development goals.Policy ED-24 Periodically assess the adequacy of the supplyof vacant and redevelopable employment landsin Bellingham and the UGA, especially landzoned for industry.The remaining vacant and redevelopable employment lands inthe City and UGA should be used asefficiently as possible to reduce thepressure to expand the boundaries ofthe UGA into rural areas.Policy ED-25 Land with industrial zoning in the UGA shouldbe reserved for industrial uses and appropriate accessory uses.Policy ED-26 Review land use regulations, development standards and design guidelines to ensurethat the existing developed and remaining vacant or underutilized employment landsare used as efficiently as possible.Policy ED-27 Evaluate rezone proposals and changes to development regulations for potentialimpacts on the supply of land zoned for employment activities.The City's 2009 Employment Lands Study, Phase II, includes a target industry evaluation thatidentifies desirable, mutually-supportive employment sectors for Bellingham. These sectors wereidentified based on their potential for growth, wage and salary rates, and presence or concentrationin the City and region. Based on this analysis, a number of employment sectors were identified asdesirable for Bellingham. Examples include, but arenot limited to, the following: Marine trades Professional, scientific and technicalservices Computers, internet andtelecommunications Equipment and instrumentationmanufacturing Adventure-related recreation Food processing Health careBellingham has an established fishing port that Education, including workforce trainingincludes a fleet and local processing facilities. Advanced manufacturingPhoto by Jake Hilleary.Page 11 of 20November 14, 2016

Bellingham Comprehensive Plan 2016Economic Development ChapterPolicy ED-28 Ensure that there are suitable locations for the targeted employment sectors listedabove.Policy ED-29 Support the retention and growth of the industrial/manufacturing sectors and seekto attract new businesses to provide opportunities for skilled employment and livingwage jobs.Policy ED-30 Develop or support programs that seek to provide an increased supply of workforcehousing.Policy ED-31 Continue to provide adequate and efficientcommunity infrastructure such as roads, water,sewer, stormwater management and other publicfacilities and services.Bellingham's transportationnetwork and otherinfrastructure are importantassets that encourage andaccommodate economicdevelopment.Policy ED-32 Identify employment land that lacks sufficientinfrastructure and coordinate City investments in utilities, transportation and otherpublic facilities with business and employmentopportunities whenever possible.Policy ED-33 Strive to maintain level of service (LOS) standardsthat support Bellingham's high quality of life.Policy ED-34 Select wetland mitigation sites for unavoidableimpacts based on current state mitigationguidance documents and first consider on-site andin-basin mitigation before considering amitigation bank or in-lieu fee program.Policy ED-35 Consider regional stormwater detention whenlow impact development techniques are notfeasible and where it can be shown to limitmaintenance costs, improve the management ofstormwater and increase the development Wharf Street multi-modalpotential of properties.roundabout serves as a gateway toseveral key locations.Policy ED-36 Encouragecontinuedandexpandedtransportation options connecting Portland, Oregon, Seattle, Bellingham andVancouver, British Columbia, and ferry service to the San Juan Islands, BritishColumbia and Alaska.Policy ED-37 Support the Port of Bellingham’s efforts to advance the Bellingham InternationalAirport, providing greater access to other marketplaces, while also benefiting thelocal economy.Policy ED-38 Encourage and support the development of technology and telecommunicationsinfrastructure Citywide and throughout the region.Page 12 of 20November 14, 2016

Bellingham Comprehensive Plan 2016Economic Development ChapterPolicy ED-39 Promote the efficient use/reuse of employmentlands by coordinating with other levels ofgovernment to support and encourage the cleanupof contaminated soil and other environmentalremediation activities.Policy ED-40 Identify and remove barriers to redevelopingunderutilized and/or vacant land and buildings.Many opportunities exist toreclaim and repurpose vacant,obsolete or contaminated landand buildings to improvecommunity health and safety,increase environmental qualityand provide economic benefitsin these areas.Vibrant Commercial CentersCentral to the City’s economic development efforts is the promotion of a strong and vibrantdowntown and other mixed-use urban villages with approved master plans, including BarkleyVillage. To achieve the City’s infill and urban village growth strategies, growth should be directed tothese areas with strategic investments in the facilities and services necessary to support thedevelopment. Sufficient housing is a key component in successful urban villages.Mixed-use urban villages offer tremendousopportunities for job growth. Each urban villagemaster plan contains goals, policies and strategiesspecific to that particular village to support theCity's growth management and economicdevelopment goals (see the Land Use chapter forinformation regarding the City's urban village infillstrategies).GOAL ED-4Foster vibrant urban villages.Policy ED-41 Provide a wide range of permitteduses in emerging urban villages toencourage these areas to develop as Downtown Bellingham is the heart of thecommunity, serving as host to many communityemployment centers.wide events.Policy ED-42 The City should invest in parks, historic and cultural resources and other amenitiesto stimulate the development of housing and businesses in urban villages.Policy ED-43 Implement the visions of the Downtown Bellingham Plan, which strive to further adowntown that: Is economically healthy; Is clean, safe and welcoming; Uses environmentally-friendly building and business practices; and Offers a variety of residential, retail, office, service, cultural, civic and recreationalopportunities.Policy ED-44 Provide infrastructure and public amenities to support the redevelopment of theDowntown, Old Town and Waterfront Districts consistent with the adopted subareaplans.Page 13 of 20November 14, 2016

Bellingham Comprehensive Pl

2. Identify the City's role in economic development activities. 3. Provide a framework for the City's Economic Development Strategic Action Plan (ED-SAP). The City's Role in Economic Development The City's PRIMARY ROLES in economic development activities include: ROLE 1: Provide strong LEADERSHIP to create a POSITIVE ENVIRONMENT, both .

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