Economic Development -D
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Economic Development
Transition Committee Findings
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For the
City of Spokane Valley
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Table of Contents
Statement in Support of an Economic Development -Department I
Budget / Salary / Qualifications /Functions Summary 2
Visual Picture 3
Main Committee Discussion Topics 3
Economic Development Tools 5
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Economic Development Transition Committee Findings for the
City of Spokane Valley
The committee was commissioned by the Boundary Review.Board to study the
economic development of the City of Spokane Valley and to make their
recommendations to the new city council. The members of the committee represent
various business backgrounds in the Spokane area.
Statement In Support Of An Economic Devclonment Department
It is the consensus of this committee that the city of Spokane Valley establish its own
economic development department. There is no greater or more viable interest than
that of self-interest. Its focus, energies, and talents are directly and totally involved
with its own success. It is not persuaded to abandon its objectives by political
intrigue, conflicts of interest, or compromise. Respecting those virtues, our new city
must create its own economic development department.
r The success of our new city depends upon strategic priorities which when combined
will gain it attention, resources, and the introduction of innovative efforts by our
entire city government. An economic development department is the cornerstone of
our new city government and the quality of our future should not be relegated to a
secondary position by virtue of contracting it elsewhere. Only our own proactive
economic development department, whose priority is entirely focused on the
! economic vitality of our new city, would be positioned to respond quickly and
effectively to the economic potentials, which can and will avail themselves to our
new city.
- This is not a time to be timid. It is not a time to under fund or delegate a critical
component of the success of our new city to indefinite and changing quantities which
may be complacent, inefficient, and involved with too many venues to be effective
` J for any one city. Our research clearly illustrates that most cities of similar
population throughout Washington have their own economic development
departments. 'their directors are agreed that such a department offers better
efficiency and is able to more effectively target market the specific needs of their
respective cities. The Spokane Valley can also be bold and reasonable so it may
ensure a prosperous business climate and compete more effectively for resources
and a place of prominence which signals to its citizens and business interests in and
outside the city that it is here for the duration and that it intends to be the best it can
be.
We have the opportunity now to maximize our new city as an urban, social, cultural,
and business hub. Our own economic development department will provide the
incentives and infrastructure to stimulate private and public investment and
provide an inter-agency manner by which business can expand and prosper. By the
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~J establishment of our own economic department, we can institute a unified, strategic,
and thoughtful vision to accomplish our goals and guarantee our own economic
fu to re.
Budlzet/Salary/Qualifications/Functions Summary
Our findings regarding the budget, salaries, qualifications, and functions for the
economic development department are derived from information gained directly
from thirteen cities across the State of Washington. The compiled data from the
targeted cities show these averages:
Population 116,750
Number of Economic Development Department Employees 7.5
Budget $575,000 (.Includes Salaries)
Salaries S60,000 to $:100,000 DOQ for the Manager/Director
540,000 to $70,000 DOQ for the Marketing Specialist
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The veneral functions of the Economic Development Manager/Director are similar
for each city throughout the State of Washington. That person is required to
"organize, coordinate, and direct the Economic Development program of the
community and Economic Development of the department; assess city economic
development problems and issues; plan and develop program recommendations;
r~ assure the implementation of economic development programs; plans, organizes and
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l_ directs the activities to enhance economic development in the city. The Manager is
responsible for the development, recommendation and implementation of policies,
programs and procedures that accomplish the City Council's goals and objectives to
' . ensure the economic health and vitality of the city."
i The minimum qualifications of the l'•conomie.Development Manager/Director
include a Bachelor's degree in business, economics, finance, or related field plus five
years related and progressively responsible experience. Special qualifications may
include lateral knowledge and experience in a variety of professional business
disciplines.
Under the direction of the Economic Development director, the functions of the
- Marketing Specialist are to assist in planning, organizing and completing economic
development projects. and recruiting new businesses to the city: -The Marketing
Specialist would research, analyze and report on economic market trends and
develop a marketing strategy for leasing city-owned commercial properties. The
Marketing Specialist would work with the Economic Development
Mattager/Director to implement a coordinated business recruitment campaign.
The minimum qualifications of the Marketing Specialist include a Bachelor's degree
in real estate, business, finance, marketing, property management, or related field
E plus three years of experience. Special qualifications may include professional
experience in business to business marketing, real estate, and similar expertise.
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rs The duties of other employees may include the preparation of lease agreements, the
j review of proposed ordinances and codes, the evaluation of industrial and
commercial potential of properties, and the research of business issues and
complaints.
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Visual Picture
The Economic Development Department should be a portal for growing and
r~ relocating businesses, both moving to the new city and businesses within the city, by
i being a one stop location for them to get the information they need to accomplish
their goals. The. Economic Development Department would work closely with the
planning department to assist businesses in obtaining the required permits for
starting and expanding - businesses. The personnel in this department will need to
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have contacts in other departments and broad industry knowledge to assist new
business owners with the necessary permits.
The Economic Development Department would be a portal of information to
J' existing businesses in providing to them information affecting their business. One
example would be working with the planning department so that access to business
parks and business developments are not cut off for an extended length of time.
Next would he communicating to business owners, with sufficient lead time, when
accesses (roads) to their business will be blocked or otherwise restricted. We should
make every effort to avoid customers having difficulty getting to businesses within
` the city, or these same customers may seek another place in which to purchase their
product or service. If notified ahead of time the business owner can plan around the
obstacle that will be placed in front of their business location.
The Spokane Visitor Bureau is actively working on bringing film producers to the
City of Spokane Valley and the city. This department would develop the protocol
needed to accommodate special events. This would include coordinating the various
other departments to get the approvals needed for the event to go forward.
j Since the majority of businesses in the City of Spokane Valley are small businesses
the Economic Development Department could give back to the business community
by developing a resource center for business owners. 't'his work would be in
conjunction with BIC and SBA in Spokane to provide some of their seminars,
classes and literature in the Spokane Valley. This would bring such resources closer
to the ones using and needing the information.
Main Committee Discussion Topics
CURRENT ECONOMIC CONDITIONS - The economic status of our community
is extremely heavy in construction and retail type industry, which is common nation
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wide. Per the information provided by committee member Grant Forsythe,
• Economics Professor at Eastern Washington University, seventy percent of all jobs
? fall into these two sectors of occupations. It is important for it healthy business
community to diversify, the industries that reside within its borders to withstand
future economic downturns.
LIGHT RAIL DEVELOPMENT -The light rail system is a controversial topic
r which was discussed at length by the committee. The current layout of the light rail
track would divide the Spokane Valley in two, impede north/south traffic, and
` generally not serve the business community well. The committee feels that money
would be better spent.by correcting routes used by the current bus system.
BUSINESS RECRUITMENT- The committee believes for proper economic growth
the City needs to recruit businesses from a variety of industries. Focusing on the
recruitment of any one business or industry binds the city to the economic swings of
that particular industry. One of the first projects of the Economic Development
Department is to develop an inventory of the current resources of the city, so as to
focus their marketing emphasis.
APPLEWAY AND SPRAGUE CORRIDOR - The creation of this corridor remains
controversial. While many defend it, some business owners believe it has
compromised their businesses. In our analysis of this issue, we found that
businesses suffered during the course of construction of the corridor, mainly
because of lack of timely communication. However, since its completion various
businesses are reporting an increase in traffic floe', which in turn benefits those
businesses. Sprague traffic has seen an estimated increase of over 20,000 vehicles -
per month. Before any major changes are done to this corridor the council needs to
commission a study on how the businesses along this corridor will be effected by any
proposed change.
it was also noted by committee members that Sprague Avenue has an appearance
problem and clean up codes may need to be enforced to sustain the market value of
those properties.
SIGNACE -The committee heard several concerns regarding restrictions on the
type and placement of signs. Any decision on this topic is going to have an impact
on existing and future businesses. This committee recommends that our city
commission a task force to review current county, ordinances and their recent study
on signage. The task force should include local business owners.
UNFRIENDLY BUSINESS CIANTATE - The committee members all agreed that
state and local governments have been extremely unfriendly to the business sector.
It is important to note that while residents place members on the council, it is the
business community which provides the revenue which enables the city to operate.
Thus changes to the current flow of business traffic, communications to business
owners about future disruptions, and a general, quality support of our business
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community is imperative for the Spokane Valley to become recognized as a business
- friendly city.
Economic Development Tools
TAX INCREMENT FINANCING - Tax Increment Financing is a tool used by
municipalities to reduce or,climinate blighting conditions, foster improvement, and
enhance the tax base of every taxing district which extends into the area. Tax
Increment Financing provides funds for redevelopment for specific areas that would
not occur without the support of public investments. This tool allows the City to
capture the increase in state and local property taxes that result from a
redevelopment which also contributes to the Tax Increment Financing fund. The
City is required to prepare a redevelopment plan, and submit it to the state for
approval, for each district which identifies uses for the Tax Increment Financing
fund.
ENTERPRISE ZONES - Enterprise "Lone benefits are generally triggered by an
improvement to a property which requires a building permit. An Enterprise Zone
application would be obtained through the Planning Department and returned with
the Building Permit Application. The incentives offered by the City for certified
Enterprise Zone projects are: (l.) partial property tax abatement; and (2) state sales
- tax exemption on building materials. Enterprise Zones are sanctioned by the state
government; currently there are only six in the state of Washington. A business
does not need to be located within the Enterprise Zone to reap the benefits of the
zone. I'he business does need to go through an application process and meet specific
criteria to keep its Enterprise Zone status. A map of the Enterprise Zone would be
available through the. Planning Department.
FOREIGN TRADE ZONES - Foreign Trade Zones were created in the United
States to provide special customs procedures to U.S. plants engaged in international
trade-related activities. Duty-free treatment is accorded items that are processed
within Foreign Trade Zones and then re-exported, or duty payments are deferred
on these items until they are brought out of the Foreign Trade Zones for sale in the
U.S. market. Having a Foreign Trade Zone would allow the city to market to
companies that manufacture or assemble products from a foreign county to be sold
in the same or another foreign county. A variety of activities can be conducted in a
zone, including; assembling;, packaging, destroying, storing, cleaning, exhibiting, re-
packing, distributing;, sorting, grading, testing, labeling, repairing, combining with
foreign or domestic content, or processing. Manufacturing and processing require
specific Foreign Trade Zones Board approval. There are substantial rules and
regulations related to Foreign Trade Zones, it would be recommended the
department review these rules and regulations to see if this is a viable market for the
new city.
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PORT DISTRICTS - The reason for forming a port district - and the focus for all
business by the port - is to spur economic activity for the community..Washington's
ports can own and operate shipping terminals, marinas and docks, airports,
s industrial sites, railroads, parks and recreational facilities, and even promote
tourism. Ports are formed by a vote of the people who live in the proposed port
district. This committee strongly encourages objective investigation of port district
use with input requested from our local business sector.
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This report was written and provided by:
Bob Platte
Bob McKinley
Larry Meter
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