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Home My WebLink About2.09.26 PW SS Briefings KITTITAS COUNTY DEPARTMENT OF PUBLIC WORKS PUBLIC WORKS—BOARD OF COUNTY COMMISSIONERS STUDY SESSION STAFF REPORT STUDY SESSION DATE: February 9, 2026 TOPIC: Kittitas County Conference of Governments Public Facilities Fund 2026 Project Award ACTION REQUESTED: Direct Staff to prepare enabling documents LEAD STAFF: Josh Fredrickson RECOMMENDATION: Direct Staff to prepare enabling documents including contracts and award for funding BRIEFING SUMMARY: • Kittitas County receives Distressed County Sales and Use Tax(0.09 funds) • Funds are utilized to support economic development activities and construction of public facilities • The Conference of Government(COG) makes recommendations for funding projects • Funding for two projects is currently proposed BACKGROUND: As part of SB 5740 in 1997 the State included the Rural Counties Public Facilities Sales Tax (RCW 82.14.370), known as the 0.09%rural sales tax. These funds are for the purpose of supporting economic growth and financing Public Facilities including but not limited to,bridges, roads, domestic and industrial water facilities, sanitary sewer facilities. Kittitas County's Public Facilities Fund(108)provides the mechanism for investing distressed county sales and use tax in Kittitas County. These funds are utilized to support economic development activities and construction of public facilities. Kittitas County Conference of Governments (COG)recommends award of Funds which are managed in Fund 108 by Public Works. DISCUSSION: At their December 17, 2025 and January 21, 2026 regularly scheduled meetings COG met to receive reports and request for funding of two specific program projects. This included ongoing support for the work of the Kittitas County Chamber of Commerce and for the newly created Executive Director of COG. A motion to approve funding the two projects was submitted and approved. These funding requests meet eligibility criteria and are being brought forward to the Board of County Commissioners for recommendation. Page 1 of 2 Public Works"Work Session Staff Report",2026 Enabling documentation would be drafted for Board review and consideration at a future agenda session. - COG Executive Director, up to $300,000 to support recruitment, wages, benefits and initial office establishment - Kittitas County Chamber of Commerce, $211,200.00 FISCAL IMPACTS: Funding is available in the Public Facilities Fund(Fund 108) ATTACHMENTS: None Page 2 of 2 Public Works"Work Session Staff Report",2026 KITTITAS COUNTY DEPARTMENT OF PUBLIC WORKS PUBLIC WORKS—BOARD OF COUNTY COMMISSIONERS STUDY SESSION STAFF REPORT STUDY SESSION DATE: February 9, 2026 TOPIC: Road Improvement District ACTION REQUESTED: Information only LEAD STAFF: Josh Fredrickson RECOMMENDATION: Informational briefing—no action required by the Board BRIEFING SUMMARY: • Addition of roads to the County Road system are identified in Kittitas County Code 12.01 • To be brought on-system, the Road is to be constructed to County standard • Options to fund road improvements include directly on the development or through a Road Improvement District(RID) • RID statutes (RCW 36.88)provide for improvements paid for by an assessment on the lots, tracts or parcels specially benefited by the improvement • Residents of Timber Mountain Loop have met with Public Works regarding the condition of South Cle Elum Ridge Road, a private road BACKGROUND: Roadways within the County which have been adopted by the Board of County Commissioners and dedicated for use by the public are maintained as on-system roadways. Kittitas County Code identifies to bring a road on-system requires the road to current standard (KCC 12.01.100). Public Works was contacted by residents of South Cle Elum Ridge Road inquiring about the road condition and the process to bring the road onto the County Road system. Currently South Cle Elum Ridge Road is under Forest Service jurisdiction and is identified as FS3350 Road. The current condition of South Cle Elum Ridge Road does not meet County Road standard for a County Road and would require reconstruction. Funding for road reconstruction would be the responsibility of the property owners. Another option is to create a Road Improvement District (RID). RCW 36.88 authorizes establishment of RID for improvement of County roads or private roads which will become county maintained. DISCUSSION: Road Improvement Districts (RID) are authorized by RCW 36.88. This allows for improvement of county roads, or private roads that will become county maintained. The process to establish an RID includes a petition and public hearings. To establish a RID, a petition must be signed by owners of a majority of the area benefited by the proposed RID area. An alternative method for establishing a RID is the Board of County Commissioners can initiate the process. After a petition occurs, a preliminary cost estimate for design, right-of-way and construction would be developed. The estimated costs and request would then be presented to the BOCC at a public hearing for consideration. RID cost estimate usually consists of three components: Engineering (survey, design, permitting), Construction and Right-of-Way acquisition. The Engineering cost is initially paid by the Department of Public Works, with reimbursement coming through the final RID. The cost of road improvements through an RID is the responsibility of the property owners. Property owners within the district pay for the improvements through special assessments. Assessments can typically be paid in full within 30 days to avoid interest, or in installments over a set period(up to 20 years). FISCAL IMPACT: Improvements through RID are an assessment. Ongoing road maintenance become the cost of the road fund. ATTACHMENTS: None KITTITAS COUNTY DEPARTMENT OF PUBLIC WORKS PUBLIC WORKS—BOARD OF COUNTY COMMISSIONERS STUDY SESSION STAFF REPORT STUDY SESSION DATE: February 9, 2026 TOPIC: Kittitas County CWU Technology Transfer Center Feasibility Project Update ACTION REQUESTED: Direct staff to prepare enabling documents to accept the Technology Transfer Center Feasibility Study and to work with the Conference of Governments on the next project phases. LEAD STAFF: Joshua Fredrickson RECOMMENDATION: Direct staff to prepare enabling documents accepting the Technology Transfer Center Feasibility Study and direct staff to work with the Conference of Governments on the next project phases. BRIEFING SUMMARY: • Kittitas County was awarded funding for a planning grant from the Washington State Community Economic Revitalization Board(CERB). • The purpose of the grant is to explore the feasibility of developing a Technology Transfer Center, repurposing the Old Heat building. • The final draft of the study has been completed. • The Conference of Government is positioned to support the next phases of the project. BACKGROUND: The Washington State Community Economic Revitalization Board(CERB) selected Kittitas County to receive planning grant funding. This grant funding supported the development of the Kittitas County CWU Technology Transfer Center Feasibility Study. A consultant was selected, and a draft study has been prepared. The development of the study included a project kickoff meeting, stakeholder meetings, and coordination with CWU. This feasibility study is a partnership with Central Washington University(CWU). The purpose of the study is to gauge the feasibility of using the Old Heat building as a catalyst to attract industries that will make a long-term difference for the region. Page 1 of 2 Public Works"Work Session Staff Report",2026 DISCUSSION: This study has focused on the opportunities to transform the Old Heat building on the CWU campus into a center for innovation, training and economic growth. To help support economic growth the space within Old Heat has been identified for future use for technology, advanced manufacturing and entrepreneurship. The Old Heat feasibility study has assessed models of economic revitalization and identified strategies that may be effective for the next phases. As part of the study, the feasibility of a public/private partnership to share costs of construction and improvements has been explored. The feasibility study examined ownership models and identified the reuse and restoration of the building, rather than constructing something new, as the best path forward. The proximity of the facility to campus will help provide a place to match innovative work in research and development with investors in an off-campus environment. This project will help to harness the intellectual power of Central Washington University to create relationships with business and industry. The work being done as part of this feasibility study can be leveraged to fulfil the objectives of developing Old Heat into a hub for business and technology transfer. The. Conference of Governments (COG) is positioned to support the next phases of the project. This includes a construction cost estimate for developing the Old Heat building into a warm shell. This will allow the project to be broken into phases for raising private sector capital. This will lower the cost of entry for future business collaborations at the Technology Transfer Center. COG can be used to help support the funding mechanism or capital stacking, for this project as well FISCAL IMPACTS: Project study was funded through grant awards and matching 0.09 funds. ATTACHMENTS: Old Heat CERB Feasibility Study Page 2 of 2 Public Works"Work Session Staff Report",2026 ..fir. .r • ._ rJ• r • yY ' �r f'r - ��kr " - all 'f Kittitas County Commissioners Central District 1 Commissioner Cory Wright -nAk Old Heat CERB District 2 Commissioner Laura Osiadacz ww 4� I Washington Feasibility Study District 3 Commissioner Brett Wachsmith TM ■ University Central Washington University President James Wohlpart, Ph.D. TABL • 04 Collaborators 05 Overview 06 Executive Summary 08 Approach CONTENI to 10 Goal 11 Mission 12 Reuse or Build New 13 Leadership 14 Timeline 15 Funding 16 Planning 18 Task 1 Project Management 19 Task 2 Kick Off Meeting 20 Task 3 Public Involvement 22 Task 4 Project Costs 23 History 26 About 27 Old Heat:A Multiplicative Enterprise for Regional Economic Development Rethinking Economic Development in Distressed Regions 28 Defining Prosperity in Economic Ecosystems A Typology of Enterprise Contributions(Based on the Central Washington University 28 Business Community Services Regional Contribution Continuum): --�� Extractive Enterprises 29 Retentive Enterprises Additive Enterprises Accelerative Enterprises 30 Introducing the"Multiplicative" Enterprise aka: "Old Heat' 31 Summary Adaptive Reuse:Why it is important to a community and why it matters to regional competitiveness Section A:A product market analysis linked to economic development: ,R- ■. i 34 Old Heat:A Multiplicative Enterprise for Regional Economic Development yM+r,r wriW.i�� Old Heat: Enterprise for Regional Economic Development 38 Section B:A market strategy containing action elements linked to timelines +� if� �. �•�•� 40 Section C: Identification of Targeted Industries ;��y�•#rrr�rr Current State and National Gap and Why Old Heat is a Step Towards Meeting the Pr R:� Growing Need: Enabling Institutional Infrastructure:The ACTT Program KENJI tsm w-■ i■■ s�M■a�a�■ Kass■��■� 43 Section D: Identification of the group responsible for implementing the marketing strategy Describe the group's capacity to complete the responsibility Operational Management Public Engagement Capacity to Implement 44 Section E:The site's appropriateness by addressing, at minimum, appropriate zoning, affect to the state or local transportation system, environmental restrictions, cultural artifact investigation, and the site's overall adequacy to support the anticipated development upon project completion 45 Section F:A location analysis of other adequately served vacant industrial land 52 Section G:Total funding for the public facilities improvements is secured or will be secured within a given timeframe 54 Section H: How the Old Heat Project Will Assist Local Economic Diversification Efforts Current Economic Structure and Risks Old Heat as a Diversification Catalyst Workforce Development and Living-Wage Jobs Strengthening Local Assets and Real Estate Tourism, Events, and Lodging Washington State Supply Chain Integration Long-Term Outcomes 58 Section I: Indicate the specific issues that will be addressed 60 Section J: List one or more economic outcomes that you expect from the proposed CERB project 1. Workforce Development 2. Leasing &Sales of Commercial Properties 3. Lodging Demand from Events 4. Diversification of Local Economy 5. Creation of Living-Wage Jobs 6. Increased Tax Revenue 7. Partnerships,Talent Pipelines&Patents 61 Section K: Quantifiable Measures of Success 62 Section L: Data to be Collected 63 Section M: Data Collection Procedures 64 Section N:The estimated median hourly wage of the jobs created when development occurs Benchmark Comparisons Aggregate Median Wage Estimate Implications for Regional Competitiveness References 65 Sources THE TEAM L,a5[ADE5.,T0 TN O �e It 9 M .r. r.. CHAMBER Of COMMERCE It x�TTiTns Col NTY / J O S E P H R. PO I R E The Public Works Administration team Central Washington University has a long We have developed an extensive network JRP Integrated Solutions connects clients and supports all divisions of the Public Works history of preparing graduates for successful by offering an abundance of business communities with resources and guidance Department. careers in an ever-changing world. and marketing opportunities to ensure our to plan and develop a vast range of projects communities continue prosperity.Acting as a focused on supporting our local communities. We are committed to provide service to the Beginning in 1891 as a teachers'college, communication hub,we are able to provide With over 30 years of experience in the citizens of Kittitas County with departmental we have continued our commitment to our members with late-breaking news on industry,JRP Integrated Solutions provides merchandise sales,over legal permitting, scholarship, public service,and our students' critical business issues and their impending an in-depth approach to navigating and request/complaint handling, public disclosure success. Each year,our students graduate impact.And,our wide range of educational understanding the needs of the community and requests,administration of access/address from CWU as well-educated citizens ready to opportunities allow our members to continue proposed projects,working to create a lasting forms,departmental&personnel policies,and move the world forward. to sharpen their professional skills.Without impact through thoughtful and intentional general information regarding the Public Works question,we are an organization committed development projects throughout Washington Department. Vision:Central Washington University will be to building a strong,prosperous and thriving State. a model learning community of access and community. Our team is committed to deliver these opportunity. Our key focus areas include community services in a courteous,expedient,and Our strength lies in our ability to work together. planning,property development and feasibility professional manner. Mission:To build a community of access and We invite you to join us in our quest to build a studies,municipal open access broadband opportunity,Central Washington University stronger and more prosperous county. Invest infrastructure network planning,heavy fosters high impact practices,sustainability, in yourself,your business and your community commercial and industrial development, and authentic community partnerships that are by becoming involved in the Chamber. My staff planning and economic development,and grounded in meaningful relationships. and I welcome your participation. waterfront planning and development. Values At CWU,our values serve as a solid foundation for creating a welcoming environment where diversity is celebrated,and students are empowered to thrive. 4 1 Old Heat CERB Feasibility Study ABOUT THE OLD HEAT CERB STUDY OVERVIEW The Old Heat project is an ambitious plan to transform a historic building in Ellensburg into a center for innovation, training, and economic growth. Counties adjacent to Kittitas, such as King County, have more high-wage, technology- edge technology, advanced manufacturing, and entrepreneurship, this project is focused jobs. This has caused young, skilled workers to leave the area. Old Heat designed to create high-paying jobs, attract forward-looking companies, and give aims to change that story. By re-imagining the building as a space for cutting- residents real opportunities to thrive without leaving home. 61% �4 r 4 pL SY_ r.. _ e _ a t ■ ANN /no 11111111111111111 Old Heat CERB Feasibility Study 5 EXECUTIVE SUMMARY EXECUTIVE SUMMARY The adaptive reuse of the Old Heat facility is a strategic investment in the Central Old Heat: Main Objectives Washington region's economic future. By transforming this historic structure 1. High-Wage Job Creation and Rural Economic Mobility into a hub for technology commercialization, diffusion, and industry growth, the 2. Technology Commercialization and Statewide Tech Diffusion project will foster high-wage employment and expand regional capacity to serve 3. Adaptive Reuse of State Resources key state and national industries. While aerospace offers a clear example of how 4. Model for Statewide Replication of Strategic East—West Alignment Old Heat can help reshore advanced manufacturing to Central Washington, the facility is designed to also support agriculture technology, communications, and The Old Heat building could be used to bring new industries to the Central other innovation-driven sectors that can anchor long-term competitiveness. Washington region: • Jobs for recent graduates and local residents The Old Heat feasibility study has assessed proven models of economic Collaboration opportunities for professors revitalization and identified strategies that fit the unique strengths of Kittitas Access to cutting edge technology for legacy agricultural businesses County and the surrounding region. This includes linking entrepreneurial support, commercialization programs, technology diffusion, and workforce development with industries that elevate wages and expand Washington's global role in technology and manufacturing. A central feature of the project is its ability to visually demonstrate what Old Heat can become. The investment in this feasibility study from the Community Economic Revitalization Board (CERB) enables the creation of high-quality - -- k design concepts that blend the building's historic character with modern technology needs. These concepts not only present a compelling vision for U J stakeholders but also serve as a foundation for defining the governance structure, recruiting anchor tenants, and ensuring the long-term sustainability of the Old Heat commercialization center. Together, these elements position Old Heat as a cornerstone for a more _ connected, competitive, and inclusive Washington economy. Its work aligns with -- four overarching objectives that guide the project's design, partnerships, and 'TIN outcomes: Old Heat CERB Feasibility Study 7 I 00 1 -. 11 1 -• • A NEW APPROACH TO ECONOMIC DEVELOPMENT IN THE REGION •, , - , 1 Kittitas County has excelled at The Old Heat project introduces a University's talent and research to traditional economic development new, research-driven approach that create an innovation hub that trains _ methods such as retail and tourism- focuses on growing "accelerative" workers, helps local businesses adopt • based businesses. industries-- businesses that not only advanced technologies, and attracts ' • bring jobs but also expand skills, high-value sectors like aerospace, • - • 1- - 1 However, this has not been enough to technology, and opportunities across agricultural technology, clean energy, • build long-term prosperity for Kittitas the community. Instead of chasing and software. County. short-term investment, this strategy leverages Central Washington 8 1 Old Heat CERB Feasibility Study -AM WHY IT MATTERS WHY IT MATTERS Old Heat can bring better-paying jobs to Kittitas County. It keeps the building's history alive while giving it a new purpose. 0_2 It helps local businesses use new technology (like ® It supports industries that can grow for a long time, robotics and Al) so they can compete. not just quick wins. At its core,the Old Heat project is about connection.It will bring together Central Washington University's talent,local businesses,and state and national industries,creating a bridge between the region's untapped potential and its future.The building can serve as a launch pad for new companies,an on-ramp for existing businesses looking to modernize,and a place where innovation happens daily.Tenants could include startups,aerospace and agricultural technology firms,clean energy developers,and other high-value industries.Each of these businesses will have access to shared labs,training areas,and collaborative spaces,making Old Heat a hub for both creative ideas and practical skills. Old Heat can be a Multiplicative Enterprise OLD HEAT El I - -- -I EJ I I EXTRACTIVE RETENTIVE ADDITIVE ACCELERATIVE MULTIPLICATIVE Characteristics: Characteristics: Characteristics: Characteristics: Characteristics: • Profit flows leave the region 0Primarily serve local markets 0 Expand the economic base . Improve workforce skills and • Attracts,starts,nurtures primarily • Limited local reinvestment • Often small,independently owned • May rely on relatively low-wage or technology sophistication accelerative enterprises • No improvement in local skill base or . May provide modest job creation but low-skill labor 0 Generate or attract 0 Tech transfer infrastructure limited wage growth • Provide positive but modest complementary firms contributions to long-term prosperity Foster R&D and knowledge spillovers Business models are rigid extractive/ COMMUNITY DYNAMIC CAPACITY Enterprises build transferable skill,expand commoditized activities,limited future options for community positive externalities Old Heat CERB Feasibility Study 9 � ED � The big goal 0 this study is to make Kittitas Count part 0 important supply chains in Washington — eke aerospace, agriculture tech, clean technology, and SOlWaC m bedded systems — so more money and talentstay local. ■ e ■ -, -; .. ■ ■ THE MISSION . -� ............ THE MISSION FOR THE "NEW" OLD HEAT , Old Heat's mission is to attract industries that will make a long-term difference _ for the region.Aerospace companies can test and produce components locally, saving costs while staying close to Washington's Puget Sound hubs.Agricultural technology firms will benefit from nearby farms and food processors to test and refine their innovations. Clean energy companies and advanced materials developers can use Old Heat as a research and prototyping base, while software and embedded systems startups will have access to hands-on industry 'S partners. This combination of industries is carefully chosen to bring high wages, innovation, and resilience to the local economy. M d The building could include Industry targets d • Commercialization hub:A space to turn ideas into • Aerospace&precision parts(close enough to Puget Sound but cheaper products and companies. to operate in Kittitas County). • Advanced manufacturing&aerospace bay:Room to design,test, • Agriculture technology(automation,sensors, irrigation—tested in and make parts. Kittitas County). • ACTI(technology training):Classes and help for businesses to • Advanced materials&clean technology adopt new tools. • Embedded systems&software like smart devices and industrial software. • Ag&food tech lab:Testing and small-batch production • Scientific instruments&prototyping for farm-related products. • Innovation studios:Offices and maker spaces for startups. • Classrooms:Training for local workers and students. ® Industries to avoid • Showcase hall: Events where the public, leaders,and investors • Low-wage,low-tech activities can see progress. • Firms that don't reinvest locally • Activities that don't help the area grow skills and wages Old Heat CERB Feasibility Study 11 REUSE OR BUILD NEW mm The decision to reuse and restore this historic building rather than build +� something new is deliberate.Adaptive reuse not only saves money and time but also protects the region's heritage. The Old Heat building's history adds character and authenticity to the project, helping the community feel ownership and pride in what it becomes. Reuse is also a sustainable choice, reducing waste and lowering the project's environmental footprint by keeping much of the building's existing structure. Its central location near downtown Ellensburg and CWU's campus makes it an accessible gathering place, while its large lot allows for expanded parking. In addition to the benefits of adaptive reuse, the Old Heat building has the following benefits: public reserve zoning makes it ideal for community and - — - — mixed-use developments; its location next to CWU, with easy access to transit, _ — sidewalks, and open lawn space, ensures strong connectivity and usability. While its historic status requires extra review, it boosts community pride and opens opportunities for preservation grants. The property's large lot also provides space to expand parking as needed. WHY FIXING UP OLD HEAT MAKES SENSE Other sites in the area fall short of • • potential This stu• looked at numerous •.tential o �acn O None fit all the components and sites that could house this vision. space needed adjacent to the University that will be required for Costs less and is Supports local jobs Protects history It's good for the Fits walkable a commercialization enterprises faster than new and businesses. and builds environment areas, making need for close collaboration construction. community pride. because it reuses access easier. with the University • business community. Eight sites were materials and saves evaluated in all. energy. 12 1 Old Heat CERB Feasibility Study r - =r LEADERSHIP The project is supported by a coalition of leaders, including CWU's Business and Community Services team, Kittitas County officials, and local business partners. _ Together, they will manage the site, oversee tenant selection, and ensure Old Heat stays focused on its goal- driving growth through innovation. _ Attendees at The Old Heat Kickoff Event Old Heat CERB Feasibility Study 113 TIMELINE PLAN AND SIMPLIFIED TIMELINE Using phased development, the project will start with finalizing designs and securing zoning and permits in 2026, followed by industry outreach, programming, and technology adoption support. By 2028, the center will be fully operational, hosting training programs, events, and incubator programs for startups. 2026 o = Design, permits, site readiness, and brand the "new" Old Heat technology center. LATE 2026 - 2028 t Start outreach; create an advisory council. LATE 2028 & AFTER �ooi0 Run training, startup programs, tech-adoption labs, internships. 14 1 Old Heat CERB Feasibility Study r f ti # t FUNDING PLAN Funding is being carefully planned through a mix of state appropriations, private investments, naming rights, and grants from both government and private foundations. SIMPLIFIED FUNDING PLAN: MEN BEFORE rLtAT2025 EARLY - MID 2026 2026 - 2027 2026 - 2028 CONSTRUCTION iefings; form Seek a state Quiet phase to Ongoing grants Make sure an advisory board; capital-budget secure anchor from federal/state/ public funds, line up consultants earmark; begin gifts and naming foundations. private pledges, if needed. private fundraising. rights (about and grants are 40% of goal). secured. Old Heat CERB Feasibility Study 15 PLANNING FOR J SUCCOESS HOW WILL SUCCESS BE MEASURED FOR THE PROJECT? Once completed, Old Heat will not just be a building but a centerpiece of regional economic transformation. It is expected to create hundreds of direct and indirect jobs, most paying well above the county's current median wage. Typical wages in target sectors are about$40—$45 per hour on average, higher for some roles (like embedded systems and aerospace), which is well above today's county median. In addition to bringing new industries to the area, Old Heat will strengthen existing businesses by helping them adopt new tools and practices. Workforce training, internships, and hands-on projects will connect students from CWU with local companies, encouraging them to stay and grow their careers here. By 2030, the vision for Old Heat is to have built a thriving network of innovative companies, a stronger and better-paid workforce, and a reputation for Kittitas County as a place where people and businesses can grow. More than just a R& :. _ business hub, Old Heat can serve as proof that rural communities can lead in advanced technology and high-value is . _ industries. It has the potential to show that history and innovation can work together for a more prosperous future for Central Washington. for The benefits of Old Heat go beyond jobs and technology. By restoring a historic landmark and filling it with activity, the project will breathe new energy downtown Ellensburg. Conferences, training events, and accelerator programs will bring in visitors, boosting local hotels, schools,and shops. This ripple effect will spread through the entire community, creating a stronger tax base and more resources for . public 16 1 Old Heat CERB Feasibility Study J , N1 Am- High wage Employment THE BOTTOM LINE g Ch A i n Technolo Old Heat turns a historic building into a working engine for better jobs and g Y stronger local businesses. It connects CWU talent, local companies, and state- .C R e s h o r 1 n g level industries. With strongpartners and a clear Ian, Old Heat can help Kittitas Sup Diffusion p p p b,QEntrepreneurship" u i" P Y Development County keep its young people, raise wages, and grow a modern, resilient economy. Innovation Business w Advar, --�d Old Heat CERB Feasibility Study 117 TASK 1: PROJECT MANAGEMENT Task One of the Old Heat CERB study was the project management for the study, and included all planning tasks, project management, meetings, and other administrative items related to the completion of this work. : Y I IS j ~ r y 1 ry VC ; r ! i - y ?v. 18 1 Old Heat CERB Feasibility Study TASK 2: KICK OFF MEETING On April 29, 2025, CWU, together with Kittitas County and JRP Integrated Solutions hosted the Old Heat study kick off meeting. The event brought together community leaders, local media, and key partners to highlight the significance of the Old Heat study for Central Washington's future. The CWU President opened with remarks underscoring the university's commitment to the project, followed by Commissioner Laura Osiadacz who emphasized its regional impact, expressed gratitude for partner support, and introduced JRP. Joe Poire outlined the study's goals, timeline, and opportunities for community engagement, setting the stage for broad participation in shaping the project's direction.Attendees, including representatives from local media, CWU, economic development organizations, and local businesses, concluded the event with _ refreshments and networking, fostering collaboration around this transformative initiative. low, \ As President Wohlpart stated in his opening remarks, "...the project that we launch today is bold and a part of the larger Kittitas County Economic Development Plan: to make Kittitas County a hub of transformation in the region and the State."This sentiment typifies the work that underlines the Old Heat study- how the building, having been re-imagined, could support a different kind of regional economic development. SK 02 Image Credit: Visit Ellensburg-Expedia r Old Heat CERB Feasibility Study 19 A diverse attendee list included representatives from local businesses and r organizations Trace, Peers Rising, Cashmere Valley Bank,Associated General r Contractors of Washington, Central Washington University, Gallery One, Hotel Windrow, TM Construction Group, INC, The Original Hot Dog Stand, Ellensburg Downtown Association, City of Ellensburg, Laile Fletcher (Independent -� Insurance Agent), Manastash Media, Jerrol's, Figgins Craft Spirits Group Ltd, Accolade, and Kittitas County. Comments during the discussion included concerns that the building is historic and needs to be preserved to maintain the historic nature. One attendee noted E that Ellensburg has a funky vibe—cowboy boots and poetry. Old Heat could f T reflect that. The need for a big-name company to anchor the building was discussed. The need for a port district came up as a public entity that can make investments on a long-term basis. A written questionnaire was distributed during the meeting and responses were _ discussed. 1 They included: ' QUESTION 1 How might the Old Heat building best serve the community and � � r give the community a competitive advantage? Consolidate CWU's wine studies and brewing programs into Old Heat and add distilled spirits studies under one roof to operate along commercial AM- lines much like WWCC in Walla Walla has at their teaching winery. Image Credit:CWU Website TASK 3: PUBLIC INVOLVEMENT The creative design sector would be great. Diversification beyond "Eds and Meds"jobs for above average wages On June 26, 2025,Amy McGuffin, Kittitas County ADO and President and CEO of the Kittitas County Chamber of Commerce hosted a roundtable to discuss 0 This may be off topic. I talked with a number of my coworkers in my bank. potential uses for the Old Heat building. Bill Provaznik and Rob Ogburn from Most brought up an area that includes a meeting space or some form of CWU Business and Community Services provided an overview of various venue. This is needed in town. Not entirely a competitive edge. Rather an business types and an analysis of economically beneficial and non-beneficial opportunity for community involvement. Rent space. businesses and answered questions. They included IMpact Analysis for PLANning based examples (IMPLAN). IMPLAN is an economic modeling system Anything that can provide tech or creative jobs for our graduates at the used to measure how changes in one part of the economy affect the rest of the university and preferably creates a transient drive of contract workers also. economy and is referenced throughout this study. 20 1 Old Heat CERB Feasibility Study We're the perfect centrally located stopping space between Seattle and • Capitalize on existing industries in Kittitas County and pull from CWU Spokane. grads/programs • Focus on supporting/expanding creative industry and creative technology. • Local partners, entry level tech jobs/education $120B annually in Washington state—20% of GDP. Ellensburg becomes a creative tech hub/training center. • Are there businesses we can partner with? • Leveraging the location being collocated between college and city. QUESTION 3 How might businesses in this building contribute to finding places for STEAM graduates to make a living wage here in this • A multi-pronged approach to address many needs and industries. The community instead of leaving for other markets? facility could be organized such that the spaces can be flexible. • STEAM businesses in the building need to be connected and contributing, • Retain higher education from CWU from start to finish placing interns and supporting opportunities for new businesses, existing businesses, growth, etc. • Fresh out of CWU tech jobs.Ag manufacturing or any manufacturing so it can change. Restaurants over there seem to disconnect downtown and • Recruitment and retention. Location—highway hub transportation center. campus. • By supporting the establishment of creative, aerospace, and other STEM • The exponential growth concept is inspiring. Creating jobs that are industries at inception.Additionally, a technical school level program to attractive to those both locally and throughout our region would be align with locals who are looking to develop vocations. amazing. Creating "draw" is key • Business mentorship and partners. QUESTION 2 How might we use Old Heat to bring technological core competencies into the community's business ecosystem? QUESTION 4 Do you have a business or organization that would like to consider having space in the building? • Tying to businesses.As for mine—connect history, heritage, and culture (Kittitas Co Historical Museum) Yes, I can conceive of locating my consulting and distilling there, along with a new-product design studio. • Drive new industry that we don't have represented here yet. QUESTION 5 Would you serve on a committee to help guide and formalize • Business expansion and recruitment. Not competing with existing this project? businesses in the community. Serves to enhance and support(workforce training, etc.) Several attendees answered "yes"to this question. Their names and contact information were captured. • Providing financial and facility support to get involved in the early planning and initial implementation in the community. Old Heat CERB Feasibility Study 121 TASK 4: PROJECT COSTS a. Costs of architecture and TASK 04 construction are necessary to repurpose existing industrial building to Class B commercial space for innovation and technology commercialization. � • i • b. Costs of architecture and DIVISION ITEM 2018 BID % PREVAILING WAGE construction are necessary to La A repurpose existing industrial GCs Soft Costs (OH&P, Insurance, $1,134,596.00 $ 1,645,164.20 $ 1,891,938.83 buildings to business incubation Bonding, B&O tax and meeting spaces. Existing Conditions (demo and abatement) $ 237,190.00 $ 343,925.50 $ 395,514.33 A design for the Old Heat Welcome Earthwork $ 156,895.00 $ 227,497.75 $ 261,622.41 Center with engineering was Exterior Improvements $ 126,332.00 $ 183,181.40 $ 210,658.61 performed in 2016 to be bid in three Concrete $ 261,604.00 $ 379,325.80 $ 436,224.67 phases. The table below shows the history of the project and an updated Masonry $ 242,348.00 I $ 351,404.60 $ 404,115.29 construction cost for what would have Metals $ 645,514.00 $ 935,995.30 $ 1,076,394.60 been phase 3 of the project. The Wood and Plastic $ 74,603.00 $ 108,174.35 $ 124,400.50 design created for the Welcome Center and Community Education Center Thermal and Moisture Protection $ 230,053.00 $ 333,576.85 $ 383,613.38 serves as a good platform to build on Doors and Windows $ 392,907.00 I $ 569,715.15 $ 655,172.42 for the current project being explored. Finishes $ 658,582.00 $ 954,943.90 $ 1,098,185.49 Variations to tenant improvements will Specialties $ 56,385.00 $ 81,758.25 $ 94,021.99 be made to meet the specific needs Conveyance $ 199,500.00 $ 289,275.00 $ 332,666.25 of the new use in the future as those Fire Protection $ 82,050.00 $ 118,972.50 I $ 136,818.38 are developed. The capital cost of the project should be in the range of the Plumbing and Mechanical $ 687,727.00 $ 997,204.15 $ 1,146,784.77 estimates that have been brought up to Electrical $ 694,297.00 $ 1,006,730.65 $ 1,157,740.25 2025 construction costs. Design Contingency $ 179,666.00 $ 260,515.70 299,593.06 • : : i ii M Table 1:Costs 22 1 Old Heat CERB Feasibility Study HISTORY HISTORY The remodel of the Old Heat Building to become a Community Education Center was the design brief. This center would facilitate programs that are supported by university programs. Some of the programs considered were: Old Heat was constructed in 1946 to serve Central Washington University (CWU) as a coal fire steam plant. The concrete and masonry superstructure has a brick • A Center for excellence in Science and Math Education veneer exterior and tall, steel framed industrial windows. Inside the structure is • US First Robotic Competitions a high-volume, three-story interior space with cat walks, a circular iron staircase • Safety and Health Management Certificate Programs and the original coal chute are still present in the building. The four large coal • Craft Beer Certificate Program boilers have been removed. • Wine Business Certificate Program • The building would house the Auxiliary Services Department and classroom The south side of the structure is a single-story addition that was home to a spaces in the single-story south portion of the building and the CWU machine shop and furniture shop. Offices on the Southeast side of the structure Welcome Center in the large North Portion of the structure. were used for technological support. The work was divided into three phases. This work was carried out from 2016 In 1971 Old Heat was taken offline when the construction of a centralized utilities through 2017. plant was completed. No changes to the structure had been made since its construction. The building was used for storage between 1971 and 2017. Phase I was bid on 9/22/2016. Lydig Construction was awarded the bid. This scope of work took care of the hazardous material remediation. The initial bid A capital improvement grant was requested from the Washington State amount was $527,000 and final cost with change orders was $570,940. Legislature in the 2015-2017Capital Budget Request for CWU for$4.9M. CWU was successful in obtaining the request and received $4.9M in July 2015. Phase II was bid on 1/10/2017. The initial contract amount was $3,386,000, Additional funding would come from the university budget. The combined funds awarded to Lydig construction. This scope of work performed seismic structural totaled $6,149,067.00. work, new windows and insulation were installed in the south single-story section of the structure. The mechanical and electrical rooms throughout the building It was recognized during work CWU performed in 2016 that the building's were outfitted with new electrical and HVAC equipment. The final cost with location adjacent to neighborhoods and downtown could help create a synergy change orders was $3,585,215. between the university and community. During the legislative ask in 2015 one of the strong benefits of the project was interface between the community and the Phase III was a bid package to complete the fit out of the building as per the university. The Washington State Legislature liked that aspect of the project. design. It was bid on September 12, 2017, and only one bid was received. The bid was over budget by$1 M plus at$5,880,583. CWU looked for ways to reduce Integrus Architecture was hired to perform a phase 1 evaluation of Old Heat. the cost of the project by changing the scope of work. In the end the project was Integrus and their team of consultants were brought onto the project to perform put on hold. There were competing projects at the time at CWU, and housing structural, civil, electrical and plumbing, low voltage, and abatement designs and was a top priority as the occupancy rate for rentals was 99% in 2017. assessments of the building. This scoping work was completed in June 2016. After the phase III bid was analyzed, it was determined a $300,000 savings was achievable with more detailed information in the bid package and redesign of some features that required work in tight places to build to specification. 24 1 Old Heat CERB Feasibility Study There are architectural pieces of Old Heat that have been salvaged or retained in the building during phases I and II of the construction projects. These pieces can be used in the adaptive reuse of the building to bring the history and character of the building to life when renovated with four overarching objectives that guide the project's design, partnerships, and outcomes: Division Item 2018 Bid 2025 Escalated Cost (45%) 2025 Cost wf Prevailing Wage (45%) GCs Soft Costs (OH&P, Insurance, Bonding, B&O tax) $ 1,134,596.00 $ 1,645,164.20 $ 1,891,938.83 Existing Conditions (demo and abatement) $ 237,190.00 $ 343,925.50 $ 395,514.33 Earthwork $ 156,895.00 $ 227,497.75 $ 2610622.41 Exterior Improvements $ 126,332.00 $ 183,181.40 $ 210,658.61 Concrete $ 261,604.00 $ 379,325.80 $ 4360224.67 Masonry $ 242,348.00 $ 351,404.60 $ 404,115.29 Metals $ 645,514.00 $ 935,995.30 $ 100760394.60 Wood and Plastic $ 74,603.00 $ 108,174.35 $ 124,400.50 Thermal and Moisture Protection $ 230,053.00 $ 333,576.85 $ 383,613.38 Doors and Windows $ 392,907.00 $ 569,715.15 $ 655,172.42 Finishes $ 658,582.00 $ 954,943.90 $ 10098,185.49 Specialties $ 56,385.00 $ 81,758.25 $ 94,021.99 Conveyance $ 199,500.00 $ 289,275.00 $ 3320666.25 Fire Protection $ 82,050.00 $ 118,972.50 $ 136,818.38 Plumbing and Mechanical $ 687,727.00 $ 9970204.15 $ 101460784.77 Electrical $ 694,297.00 $ 1,006,730.65 $ 1,157,740.25 Design Contingency $ 179,666.00 $ 260,515.70 $ 299,593.06 TOTALS $ 5,8800583.00 $ 8526,845.35 $ 90805,872.15 Table 2:Build Detail Old Heat CERB Feasibility Study 125 ABOUT THE OLD HEAT BUILDING 3. Adaptive Reuse of State Resources The project revitalizes a historic public building. Instead of constructing Old Heat:A Multiplicative Enterprise for Regional Economic Development new facilities, Old Heat transforms an underused structure into a hub for innovation, training, and business development. It stands as a visible The Old Heat project involves re-purposing the facility to bridge the under- example of cross-regional collaboration that yields measurable economic leveraged capabilities of the Central Washington region to the needs and returns and expands access to opportunities for Washingtonians often left opportunities of the larger WA state economic ecosystem. In this respect, the out of the innovation economy. facility and the activity related to it serve as a funnel for high-value industry to successfully integrate their supply chain activity into regional resources and 4. Model for Statewide Replication of Strategic East—West Alignment capabilities. It also serves as an on-ramp for local industry and entrepreneurship The Old Heat project demonstrates how rural communities can convert to be competitive in national and international markets through activities such as legacy infrastructure into competitive, innovation-driven economies. By competitive technology integration, university resource collaboration, and supply strengthening Central Washington's connections to statewide manufacturing chain support. and technology supply chains, it makes the entire Washington economy more resilient and competitive. Old Heat provides a replicable model To guide this work, Old Heat is organized around four core objectives that define showing how rural and urban regions can function as one integrated system its purpose and ensure that every investment, tenant, and partnership advances by sharing talent, technology, and opportunity across the state. long-term prosperity for both the region and the state. Together, these four objectives establish the foundation for Old Heat's design OLD HEAT: MAIN OBJECTIVES and operations. Each translates directly into measurable actions that attract high-value industries, build local capacity, and ensure that technology, wages, 1. High-Wage Job Creation and Rural Economic Mobility and opportunity flow across regions rather than concentrate in one. The project Old Heat converts state investment into high-paying and technology- is intentionally structured to serve as an "accelerator of accelerators," both based jobs in areas such as advanced manufacturing, aerospace, ag-tech, through the programs it houses and through the broader regional innovation and and clean energy. It equips residents with technical skills that align with development initiatives it supports. Washington's innovation economy, helping rural communities participate in high-wage sectors that typically cluster in metro areas. This approach This approach is already gaining external validation. The National Science expands opportunity across the state without expanding urban sprawl. Foundation has funded Central Washington University to increase institutional and regional capacity for advanced technology and workforce development, a 2. Technology Commercialization and Statewide Tech Diffusion mission that aligns directly with Old Heat's purpose. The model guiding this effort, Through the activities of Central Washington University(CWU), Old Heat described in the following section, focuses on nurturing the dynamic agency of connects state research capacity to regional industry, commercializing the region's communities as the true engine of long-term competitiveness. technologies and spreading innovation beyond metro centers. By linking Central Washington to the state's major innovation hubs, it strengthens the Rethinking Economic Development in Distressed Regions overall Washington ecosystem, ensuring that breakthroughs developed in In regions such as Central Washington, economic development has often been one region create jobs and value across all regions. constrained by immediate challenges, such as limited housing, labor market mismatches, and underfunded infrastructure, which consume much of the attention and capacity of local decision-makers. This dynamic prevents long- Old Heat CERB Feasibility Study 127 term, strategic investment in competitiveness and reinforces a form of The activities and enterprises that Old Heat will house are ones that not only "path dependence." contribute to a community's dynamic capacity but also accelerate the growth of prosperity factors of its economic ecosystem. These types of enterprises Path dependence describes how historical development trajectories shape and are identifiable through using the Regional Contribution Continuum (RCC), as limit current choices. Regions that grew around a single industry or sector, such explained below(CWU, BCS, 2025). as agriculture, resource extraction, or warehousing, often lack the institutional infrastructure, workforce, and supplier base needed to pivot into new high-value A TYPOLOGY OF ENTERPRISE CONTRIBUTIONS (BASED ON THE industries. Without intervention, these constraints perpetuate underperformance. CENTRAL WASHINGTON UNIVERSITY BUSINESS COMMUNITY SERVICES REGIONAL CONTRIBUTION CONTINUUM): Conventional approaches to business recruitment or cluster growth, while valuable in established industrial ecosystems, offer little strategic guidance Not all businesses contribute equally to prosperity. When looking at the larger to regions that lack high-wage industry clusters altogether. In such contexts, impact of a business on a community's ecosystem on a continuum, it is helpful to communities must not only attract or grow businesses but must also select and use a typology of four enterprise types, each representing a different relationship support the types of enterprises that can systematically improve community between a firm and the community in which it operates. The enterprises and prosperity. activities Old Heat houses can only be Accelerative and Multiplicative. DEFINING PROSPERITY IN ECONOMIC ECOSYSTEMS The following models describe impact in terms of value to a local or regional community over time contributed by given type of enterprise. In evaluating the full effect of a business' impact in a community, the multidimensional framework used by the Iowa State University Extension (Fey EXTRACTIVE ENTERPRISES and Flora, 2006) of eight interdependent forms of capital captures long-term Extractive Enterprise factors that contribute to a region's Definition: These businesses reduce prosperity: net community prosperity. • Financial They may use local labor, land, or tax • Intellectual incentives, but locate M • Human ownership, management, intellectual • Social property, and/or high-skill • Cultural employment elsewhere. o • Political Characteristics: U • Natural Profit/value flows leave the region • Built Limited local reinvestment • Time •A business that contributes to long-term prosperity will strengthen one or more of No improvement in local skill base or infrastructure these forms of capital without degrading the others. Importantly, this prosperity is Examples: not measured solely in job quantity or short-term revenue, but in a community's . Externally owned solar farms: use local land but employ few locals and increasing capacity to shape its own economic future. This capability to export profits. effectively shape and change is referred to as a community's dynamic capacity". . Absentee landlords: extract housing revenue without improving housing 28 1 Old Heat CERB Feasibility Study stock. ADDITIVE ENTERPRISES • Dark factories: fully automated facilities offering no local job base. • Vacation/short-term rental (AirBnB, VRBO, etc.) portfolios owned out-of- Additive Enterprise region: shift housing from residents to tourists, with revenue leakage. Definition:Additive firms generate external revenue by selling goods Externally owned casinos: target local customers without bringing in • or services outside the region, thus outside revenue. • Company Towns bringing new financial capital into the • Enclave Industries Y community. Often labelled as "base industry" enterprises. ;_ RETENTIVE ENTERPRISES Characteristics: • Expand the economic base Retentive Enterprises May relyon relatively e low-wa Definition: These firms replace T g imported goods and services with Time or low-skill labor locally produced equivalents, retaining Provide positive but modest value that would otherwise leave the M contributions to long-term region. Situations are essential for Examples: prosperity retaining regional profits. • Food processing plants: process locally grown products for national markets. 0 Characteristics: • Telemarketing centers: export service work with limited career progression. • Primarily serve local markets • Low-skill manufacturing operations: bring jobs but rarely promote • Typically, non-base industries. innovation or regional integration. • May provide modest job creation Time but limited wage growth Additive enterprises increase total income in the community but rarely build • In positive cases, additional enterprises help a community retain revenues upward mobility or innovation capacity. otherwise spent in other locations. • In negative cases, additional enterprises reduce revenues spent in other ACCELERATIVE ENTERPRISES enterprises in the local ecosystem by directly competing in a community's Accelerative Enterprise limited market. Definition:Accelerative firms not only add value to the local economy, Wealth Retaining Examples: but they also increase the region's • Locally owned restaurants: circulate money locally and reflect community capacity to grow more high-value firms character. in the future. • Auto repair shops, hair salons, and service-based m icroenterp rises E • Local hotels and motels, if locally owned and managed 0 • While valuable for community resilience, these businesses typically do not expand the region's economic base unless they transition toward exporting goods/services. Time Old Heat CERB Feasibility Study 29 Characteristics: Examples: "old Heat": • Improve workforce skills and technology sophistication Drone manufacturing platforms: Multiplicative Enterprise • Generate or attract complementary firms that further increase the value enabling multiple applications that existing regional enterprises provide. in agtech, logistics, and public • Foster R&D and knowledge spillovers safety. • AI-enabled and other advanced Examples: general purpose technology • Advanced manufacturing firms: introduce precision tools and processes labor-intensive services:creating o that become regional capabilities. demand for new skills, 0 • Health innovation centers: attract high-skill talent while improving services. applications, and functional/ • High-tech service providers: connect to global supply chains and require legal frameworks (See the ACT Time skilled support ecosystems. I Project Congressional Directed • University research spin-offs: leverage intellectual capital and federal Spending Request for further grants for local enterprise formation. information) • Advanced manufacturing production: foundational inputs for aerospace, Accelerative firms are critical to building robust, competitive industry clusters. biotech, and energy firms. However, they typically emerge in ecosystems that already have a minimal base • Health device manufacturing: linking bioengineering, diagnostics, and data of skilled labor, supplier networks, and research institutions. systems into scalable platforms. Introducing the "Multiplicative" Enterprise aka: "Old Heat" Such enterprises offer regional leverage, not just incremental jobs or revenue. They form the connective tissue for ecosystems to emerge in places where none CWU proposes that the "Old Heat"facility become a Multiplicative Enterprise existed before. Center—a site purposefully designed to support the emergence of accelerative firms. Rather than serving as a traditional business incubator or generic co-working space, the repurposed Old Heat facility will serve as a strategic infrastructure platform to support accelerative enterprise formation. It could possibly: • Act as a facilitator for capturing infrastructure for other high-value businesses. • Integrate R&D, CWU faculty and student resources,production, and workforce development. • Create new markets or standards that anchor future firms • House operational functions of accelerative businesses while they establish footholds in the region. 30 1 Old Heat CERB Feasibility Study SUMMARY The dividends of adaptive reuse of this facility extend beyond the footprint of this single building. It will deliver tangible economic, cultural, and environmental OLD HEAT benefits that align with the state's goals for sustainable and inclusive growth: F-71 El El Ell F-1 1. Local dollars and jobs stay local.Adaptive-reuse projects typically cost 15- EXTRACTIVE RETENTIVE ADDITIVE ACCELERATIVE MULTIPLICATIVE 20% less and finish faster than ground-up construction, channeling savings Characteristics: Characteristics: Characteristics: Characteristics: Characteristics: PrntfinmM tha giw prnnadyaerwbmlmadrefs brand meemnmniocase . Improve_1d_sMll,am ,ate �respnmany into higher-quality finishes, local labor, and small-business tenants. Revived • umird ba reiwesmrem Often small,irdependmty owned ray"w relamey ww-wagem iemmbp mphMiMaboo acmMmme emmpism inhant wwnmrinMml Mllbasam tannedyitlegnW obmeaimb Pr w,llabm mmareoraryli e�hawfe landmarks often spark a "halo effect" on surrounding property values and inhashmlue limed wage groMh Awitle pwilNe bm mdest plemenlary lirms mnhibutlors ro Mgierm Prwpedry , Fwer R&D and knoMedge spillwers commercial activity. a.sinms imdels aye rigid COMMUNITY DYNAMIC CAPACITY Enema-bead namferable sM,emend mmuamnMl ammn��,I l.'d inure nations for community ,.ti°ee""nlige, 2. Culture, identity, and civic pride. Historic buildings are tangible storytellers; Exhibit 1: Old Heat on the Business Model Continuum keeping them visible anchors a community's sense of place, honors craft traditions, and offers residents and visitors alike a daily history lesson. Successful projects—from century-old churches reborn as performance The Old Heat project offers an opportunity to apply a deliberate, structured, and halls to downtown warehouses re-imagined as food-hall incubators— research-informed approach to economic development in the Central Washington demonstrate that preservation and progress can coexist, attracting heritage region. Rather than accepting any growth as good growth, this model enables tourism and volunteer passion that brand-new buildings rarely inspire. Public community leaders to differentiate between business activity that merely involvement meetings for Old Heat have confirmed this sentiment towards occupies space and activity that builds prosperity over time. the building. By serving as a funnel for attracting and building accelerative firms, Central 3. Smarter, more resilient growth. Because many heritage structures sit in Washington can begin to generate the industrial dynamics, traditionally found walkable cores, reusing them reinforces existing transit, utility, and public- only in large metro areas, for regional communities on their own terms and in space investments instead of pushing development to the fringe. Their alignment with their unique values. adaptable floorplates (lofts, high ceilings, big windows) invite flexible uses as community needs evolve—office today, makerspace tomorrow—helping ADAPTIVE REUSE: WHY IT IS IMPORTANT TO A COMMUNITY AND WHY IT cities weather economic shifts without repeated cycles of boom, blight, and MATTERS TO REGIONAL COMPETITIVENESS teardown. In this project, adaptive reuse goes beyond the practice of giving historic 4. Afast-track climate strategy. Reusing an existing structure preserves the buildings a new life and purpose.Adaptive reuse offers a stack of dividends that "embodied" energy and carbon already locked into its walls, foundation, and extend well beyond the footprint of any single project. It is a strategic investment finishes. Studies show that keeping—rather than razing—an older building in existing public asset that generates long term economic and social returns. can avoid 50-75 percent of the carbon that would be released if the same Within the framework of the Old Heat Project, adaptive reuse embodies Objective square footage were rebuilt from scratch, while deep-energy retrofits cut 3:Adaptive use of State Resources. It does this by transforming an future operating emissions as well. Because reuse also sidesteps most of the under-leveraged State-owned facility into a productive hub for innovation, raw-material extraction and landfill waste tied to demolition, it is one of the workforce development, and technology commercialization. most immediately effective sustainability tools available to cities. Old Heat CERB Feasibility Study 131 PROMINENT USES REGIONAL FAMILY WAGE JOB CREATES RISKS FINANCIAL LOCATION CONTRIBUTION CREATION SKILLED LABOR SUSTAINABILITY EXISTING USE NONE NONE NONE NIA NIA NIA POOR: COMPETES WITH HOSPITALITYAND POOR: EXTRACTIVE LOCAL BUSINESSES: NO DISTINCTIVE DESTINATION TOURISM EXTRACTIVE AND/ AND/OR RETENTIVE NO COLLATERAL POOR ADVANTAGE OR RETENTIVE DAMAGE MODERATE: MODERATE: COMPETES WITH COMMERCIAL RETENTIVE AND/ RETENTIVE AND/OR INDUSTRY LOCAL BUSINESSES: MODERATE NO DISTINCTIVE BUSINESS PARK OR ADDITIVE ADDITIVE DEPENDENT COLLATERAL ADVANTAGE DAMAGE TECHNOLOGY ACCELERATIVE DIRECT:YES REQUIRES NEAR UNIVERSITY COMMERCIALIZATION AND INDIRECT: MAYBE YES-ONGOING EFFECTIVE ONGOING HIGH AND NEAR ECONOMIC CENTER MULTIPLICATIVE INDUCED: NO IMPLEMENTATION DEVELOPMENT EFFORTS Exhibit 2: Old Heat Comparison Chart 32 1 Old Heat CERB Feasibility Study SECTIONS AmN • high-demand technical skills, and linking Washington's regional industries with state and federal innovation initiatives. Through ACTT, Old Heat becomes not just a facility, but the mechanism by which the region participates directly in A PRODUCT MARKET ANALYSIS LINKED TO ECONOMIC Washington's statewide innovation ecosystem. DEVELOPMENT: OLD HEAT: A MULTIPLICATIVE ENTERPRISE Kittitas County, with a population of roughly 44,000, sits between two powerful FOR REGIONAL ECONOMIC DEVELOPMENT economic hubs: the Yakima Valley to the south and the Seattle Metro Area to the west. Yet, despite this location, Kittitas County lags significantly behind its neighbors in median wages and industrial composition.As shown in Map A: Each program element within Old Heat is intentionally structured to deliver on the Median Wages and Wage Growth by County, Kittitas County's median household project's four objectives: 1) creating high-wage employment, 2) commercializing income of$69,928 trails far behind King County's$135,075 and even lags the and diffusing technology statewide, 3) reusing state assets efficiently, and 4) state median of$94,605. While Yakima County shares similar wage limitations demonstrating a model for replicable Eastern—Western Washington economic ($69,525), it maintains a stronger base industry cluster in agriculture that Kittitas alignment. County lacks. The project is a component of a larger/multi government/industry effort to _ address the region's lack of growth in high-value industries that is already $57b33 2,0 s,..a. underway and funded by industry and government agencies for the same 26% 4% $61.4Q purpose. For example, the National Science Foundation is funding this effort for $65.70 18% CWU to"increase institutional and regional capacity"for advanced technology and workforce development in the region. These industries targeted are $66,082 Dougi°s 22% $68,736 20% "cow those that typically drive wage increases, career pathways, innovation, and $63,835 13% reinvestment into local communities.Also, for example, there is a Congressional Gr"ye Horoor 19% $66,820 Directed Spending Request to launch the "Advanced Competitive Technology �;6%2 $65,,2%08 30% a°om, $55.536 Institute"that has passed first approval from the 2025 US Congress. This project 12% is designed to integrate the deployment of general-purpose technology such as Pe hl R$;6�5042$60,798 $65.790v"kim" $62,254 Al, blockchain, robotics, within existing regional businesses' operations to 13%$63660 ,6% $57,762 21% make them more competitive at the national and international levels. Per the Wahkiakum% ,3% $U,251 $63.461 16% Regional Contribution Continuum (RCC) model, it is intended to move existing $67,37i and new businesses from "Retentive"and "Additive" into the "Accelerative" category where they serve to build base industries in the regional base. Exhibit 3: The Advanced Competitive Technology Institute (ACTT)will serve as the applied Data Source: WA State Employment Security Department:https://esd.wa.gov/ commercialization and technology-diffusion arm of Old Heat.Anchored at Central jobs-and-training/labor-market-information/employment-and-wages/medi- Washington University's Business and Community Services division,ACTI is an-and-hourly-wages designed to connect research institutions, manufacturers, and rural enterprises through hands-on programs that translate innovation into production. Its core Data was aggregated using State Quarterly Wage Data and the LED (Local Em- functions include helping firms adopt advanced technologies, training workers in ployment Dynamics) report from the US Census Bureau and State Databases 34 1 Old Heat CERB Feasibility Study The structural challenge lies in Kittitas County's reliance on low-multiplier technology hub designed to attract firms aligned with Washington's strongest industries. Education and healthcare are the largest employers, followed by clusters (aerospace, advanced manufacturing, ag-tech,Al applications)while accommodation and food services. While vital to residents, these sectors do also equipping local businesses to compete in broader supply chains. not generate substantial outside revenue. Education and healthcare remain the largest employers, while accommodation and food services rank second. The strategy is explicitly designed to avoid repeating low-value economic By contrast, nearby King County is anchored by industries in scientific, patterns. Old Heat will not reinforce dependency on externally owned, low-wage, management, and technical services—industries that act as true base sectors low-technology firms. Instead, it aims to create a multiplier effect by anchoring by pulling in external capital and supporting high-wage ecosystems. Without an technology-intensive enterprises, encouraging adjacent startups, and connecting industrial base rooted in advanced technologies, Kittitas cannot retain talent or CWU's applied learning and research with real commercial pathways. In doing generate meaningful wage growth. so, Old Heat provides Kittitas County with the infrastructure and institutional platform to finally integrate with, rather than remain bypassed by, Washington's This imbalance results in consistent outmigration of skilled youth and metropolitan innovation economy. underutilization of the county's above-average educational attainment(35% bachelor's degree or higher, compared to only 18% in Yakima). Old Heat addresses this gap by providing the missing bridge: a commercialization and MEDIA •• INDUSTRY FOR IND INDUSTRY FOR REGION EM CIVILIAN ••• •- • • • EMPLOYED AGE(2) OM rRATE%(2) ••• POPULATION INC WA State 7,705,281 38.6 $94,605 61% 41% Education,Healthcare, 22% Professional,Scientific, 15% Social Svcs Mgt,&Admin Svcs King 21260,675 37.7 $120,824 68% 58% Scientific,Mgt,&Admin 23% Education Svc, 20% County Svcs Healthcare,Social Svcs Kittitas 44,357 37.9 $69,928 58% 35% Education,Healthcare, 23% Arts,Accommodation, 15% County Social Svcs Food Service Yakima 256,728 33.8 $69,525 60% 18% Education,Healthcare, 21% Agriculture,Forestry 15% County Social Svcs and Mining Table 3—Median Wage Comparison Chart Old Heat CERB Feasibility Study 135 OLD HEAT: ENTERPRISE SPACE PURPOSEACTIVITIES OUTCOMES FOR REGIONAL ECONOMIC Anchor facility for industry- New startups, patents, DEVELOPMENT A. Commercialization Hub university-community R&D, business incubation commercialization of collaboration research CWU is planning the adaptive reuse of the retired "Old Heat" power generation B.Advanced Manufacturing Flexible, high-bay space for Aerospace component High-wage job creation, facility into an economic development &Aerospace Bay prototyping and reshoring prototyping, small-batch reshoring supply chains, enterprise focused on increasing the projects production, pilot lines supplier diversification prosperity of the Central Washington region. The project aims to address the C.ACTI Program Base for the Applied Training in advanced Workforce up-skilling, rural region. lack project growth in high-value Headquarters (Technology Commercialization & technology adoption, digital tech literacy, stronger small industries (HVI). HVI's are industries Diffusion) Technology Initiative skills, and commercialization business competitiveness that typically drive wage increases, Testing value-added ag career pathways, innovation, and Expansion of local ag reinvestment into local communities. D.Agriculture & Food Tech Space for ag-tech and food products, food safety certification, small-batch economy, retention of farm Old Heat's role in this larger project Lab processing innovation certific income is as an economic multiplier, where processing it attracts, inspires the emergence of Incubation, co-working, New venture creation, E. Innovation & Offices and maker-type entrepreneurship entre new, and facilitates existing businesses Entrepreneurship Studios spaces for entrepreneurs mentoring, IDEA Central stronger p p into accelerative enterprises in the programs pipeline Central Washington region. Training space aligned with Certification programs, Pathways into high-demand To do this, the facility is intended to F.Workforce Development Cl CWU,Yakima Valley College, aerospace technician jobs, direct connection of be able to accommodate multiple Classrooms and industry partners training, ag-tech skills education to employment capabilities (likely tenants): G. Community&Showcase Public-facing space to Exhibitions, industry Broader community buy-in, Hall demonstrate innovation showcases, STEM outreach student inspiration, public- to schools private partnerships H. Shared Infrastructure & Essential services to make Meeting rooms, business Operational sustainability,services, IT and digital professional environment Support the center functional infrastructure for tenants Table 4:Purpose Comparison 36 1 Old Heat CERB Feasibility Study The Old Heat Commercialization OBJECTIVE PRIMARY ILLUSTRATIVE Center is designed as a multi-use innovation facility that connects Kittitas Expansion of high-skill County's physical and intellectual 1. High-Wage Job Creation Advanced Manufacturing &Aerospace employment in aerospace, ag- assets to high-value state and national and Rural Economic Mobility Bay, Innovation Studios, Workforce tech, and clean energy sectors; industries. Space within the building is Classrooms creation of regional career intended to serve both a stand-alone ladders. function and a role in the broader system of regional competitiveness Applied research converted to that can be repurposed as technology 2. Technology Commercialization Hub, ACTI market products; diffusion of demands evolve. Commercialization and Headquarters, Ag-Tech Lab innovation from metro to rural Statewide Tech Diffusion firms; cross-regional industry The following table shows how collaboration. each facility component aligns with Old Heat's four objectives and the Re-purposing a historic state outcomes it supports, see table to 3. Adaptive Reuse of State Entire Old Heat facility, Community asset into productive economic right. Resources Showcase Hall infrastructure; visible model of Together, these components exemplify sustainable public reinvestment. Objective 4. By linking Central Washington's physical and institutional Demonstrates how rural 4. Model for Statewide assets with the state's major innovation regions connect to metropolitan corridors, Old Heat provides a Replication of Strategic Integrated facility system linking innovation corridors; framework Eastern—Western WA CWU, County, and State partners replicable model for connecting rural Alignment for replication across capabilities to metropolitan value Washington. chains and strengthening Washington's overall competitiveness. Table 5: Objectives Old Heat CERB Feasibility Study 137 A MARKET STRATEGY CONTAINING ACTION ELEMENTS LINKED TO TIMELINES. L The market strategy for the Old Heat project is designed to position Kittitas County as an emerging innovation node by serving both as a launch pad for new accelerative firms and an on-ramp for existing businesses to integrate advanced technologies and workforce skills. This dual role ensures that Old Heat supports enterprise growth at multiple points along the innovation spectrum: seeding new firms, scaling regional businesses, and equipping the workforce with capabilities required for high-wage, technology-driven industries. Because implementation cannot realistically begin until 2026, the phased plan is structured around readiness, recruitment, programming, and long-term scale- out. Each stage intentionally balances Old Heat's two essential functions: (1) supporting the launch and growth of accelerative enterprises, and (2) diffusing technology and skills into the broader economy to ensure regional competitiveness. PHASE 1: INFRASTRUCTURE READINESS AND STRATEGIC POSITIONING i Timeline: Q1—Q3 2026 Lead: CWU Business and Community Services + Old Heat Advisory Council I Finalize architectural and engineering plans for Old Heat, including flexible lab, prototyping, and training spaces that serve both new firms and existing businesses. M Complete site readiness work: zoning, transportation, environmental -- compliance. ''OW Develop branding that highlights Old Heat as both a regional accelerator (launch pad) and a skills training hub (on-ramp). _pp� , • Formalize coordination with the Bowers Field development team to establish the growth pathway from incubation and training (Old Heat) to expansion and production (Bowers Field). 38 Old Heat CERB Feasibility Study PHASE 2: INDUSTRY TARGETING AND ECOSYSTEM ACTIVATION • Implement student and faculty engagement programs: internships, co-ops, Timeline: Q3 2026—Q4 2026 applied research projects tied to Old Heat tenants. Lead: CWU Business and Community Services, with County, City, and Associate Development Office (ADO) participation. • Build workforce upskilling programs that prepare existing workers for roles in accelerative firms, creating career ladders into high-wage industries. Identify and prioritize target industries with strong potential for high-wage job creation and technology spillovers: • Partner with schools and community colleges to strengthen the STEM • Aerospace and precision component manufacturing pipeline. • Agricultural technology and smart equipment manufacturing • Advanced materials and clean technology PHASE 4: ENTERPRISE GROWTH, TECHNOLOGY SPILLOVER,AND • Software, sensors, and embedded systems REGIONAL SCALE-OUT Timeline: Q3 2028—onward • Conduct outreach to firms, founders, and the Directorate for Technology, Lead: New Operating Entity + Bowers Field Development Partners Innovation and Partnerships (TIP) at the National Science Foundation (NSF), • Operate a cohort-based incubator/accelerator at Old Heat, feeding into which aims to translate scientific discoveries into tangible solutions for society Bowers Field as companies scale. and the market. • Support existing businesses that successfully adopt new technologies to expand into new product lines and markets. • Launch an Innovation Advisory Council to connect CWU faculty and students • Monitor outcomes for both pathways: with both new tenants and existing businesses, ensuring technology diffusion o Launch pad metrics: new firm formation,job creation, venture capital pathways are embedded in every partnership. attraction. o On-ramp metrics: number of regional firms adopting new technologies, PHASE 3: PROGRAMMING, TECHNOLOGY DIFFUSION,AND TALENT number of workers trained or retrained, measurable wage growth. PIPELINE DEVELOPMENT Adjust sector targeting and programming to maintain alignment with Timeline: Q1 2027—Q4 2028 national and state-levelinnovation trends. Lead: CWU Business and Community Services + Partner Institutions + New Operating Entity Ongoing Coordination and Accountability • Establish anchor programs in: • A steering committee (CWU, County, City, regional stakeholders)will meet Entrepreneurial bootcamps and cohort-based training for new ventures quarterly to oversee both the launch pad and on-ramp functions of Old (launch pad). Technology Diffusion Labs to help existing firms integrate Heat. robotics,Al, and advanced manufacturing processes (on-ramp). • Annual reporting will capture business attraction,job creation, and • Technology Diffusion Labs to help existing firms integrate robotics,Al, measurable technology and skills diffusion outcomes. This ensures Old and advanced manufacturing processes (on-ramp). Heat is recognized not only as a business incubator but as a regional • Technical assistance programs: Small Business Innovation Research platform for economic development. • Business Technology Transfer support, IP workshops, prototype-to- market training. Old Heat CERB Feasibility Study 139 • and the larger state and national demand markets. This project's focus on building highly skilled labor and destinations where it is best valued also fits with the increasing demand to reshore manufacturing activities into the United IDENTIFICATION OF TARGETED INDUSTRIES States.Aerospace, for example, as a primary industry activity in Washington State presents an opportunity with particularly high potential for reshoring into the Central Washington Region, with the Old Heat Project being a protype for The following section translates Old Heat's four core objectives into specific funneling activity back to the US. industry applications and technology-driven strategies. Each targeted sector Currently the aerospace industry is importing supply chain factors from outside and institutional program described below contributes to one or more of these the state and nation. For this example, in aerospace we are focusing on aircraft objectives: creating high-wage employment, commercializing and diffusing engine (NAICS 336412) and aircraft parts (NAICS 336413) as aircraft assembly technology statewide, reusing state assets efficiently, and demonstrating a model requires large facilities, and the primary aerospace ecosystem in Washington for replicable Eastern-Western Washington economic alignment. Together, these focuses on Boeing as the final assembly enterprise. Of the total U.S. aircraft activities illustrate how the project's governance, facilities, and programs convert engine parts manufactured, sale and value of shipments were$35.4 billion those objectives into measurable economic outcomes. (2021), and 49%was imported from out of the U.S. ($17.24 billion). The Old Heat project is structured to target firms and sectors that can transform For components needed to build aircraft listed as"Other Aircraft Parts and the regional economy through accelerated growth, high-wage job creation, and Auxiliary Equipment" by the U.S. Census, the sale and value of shipments were innovation spillovers. Rather than filling space with any tenant activity, Old Heat explicitly filters for industries that align with three strategic imperatives: $28.4 billion (2021). Of this, 42.5%, or$12.06 billion, was imported. This amounts to lost jobs and a lost tax base. This project is meant to serve as a funnel for 1. Creation of high-wage, high-skill jobs that increase household prosperity and reshoring production and using Kittitas County's resources towards increasing regional competitiveness. state and national capacity by transitioning production and innovative activity to 2. Technology diffusion and innovation spillovers, ensuring new capabilities other local and proximate regional locations. The lower estimation of impact is of extend into existing businesses and the wider community. Old Heat serving as a facility for aerospace manufacturing itself. In this case, the 3. Compatibility with Central Washington's institutional and physical estimate of revenues is$17 million a year. infrastructure, including CWU's research and talent base, regional The following section breaks out the rationale, regional fit, role, and tech transportation and logistics systems, and the proposed Advanced diffusion, by industry: Competitive Technology Institute (ACTT). CURRENT STATE AND NATIONAL GAP AND WHY OLD HEAT IS A STEP 1.AEROSPACE AND PRECISION COMPONENT MANUFACTURING TOWARDS MEETING THE GROWING NEED Rationale: Ellensburg's location along the I-90 corridor places it within • Renton while The Old Heat—Bowers Field development model serves as both an on-ramp for reach of Washington's aerospace hubs (Seattle, Kent, ) existing firms to adopt new technologies and expand their competitiveness, and a offering significantly lower land and facility costs. Tier 2 and Tier 3 launch pad for new ventures that require applied research support, skilled labor, suppliers face pressure to locate outside Puget Sound but still need accessto skilled talent and university partnerships. and scalable facilities. Earlier, in Section A, this project was discussed as an instrument to fill the gap between available workforce and resource capabilities, 401 Old Heat CERB Feasibility Study • Regional Fit: CWU's applied engineering, computer science, and physics congested, high-cost metros. programs provide a talent base for aerospace-adjacent firms. Bowers Field • Regional Fit: CWU's interdisciplinary STEM programs and recent National expansion facilities offer future production and testing capacity. Science Foundation investments position the university as a natural research partner for clean-tech firms. • On-Ramp/Launch Pad Role: Old Heat provides a cost-effective test • On-Ramp/Launch Pad Role: Legacy manufacturers can access training environment for early-stage suppliers. Firms can prototype at Old Heat, in additive manufacturing, recyclable composites, and digital Quality recruit interns, and then scale into larger facilities at Bowers Field. Assurance systems, while startups can pilot clean-tech prototypes in Old Heat's innovation space. • Tech Diffusion:ACTI could deliver Al, robotics, and simulation workshops • Tech Diffusion: Workforce upskilling in clean technologies ensures that that support aerospace suppliers in transitioning to digital manufacturing the region transitions from commodity-based industries to value-added and advanced design processes. accelerative enterprises. 2.AGRICULTURAL TECHNOLOGY AND SMART EQUIPMENT 4. EMBEDDED SYSTEMS AND SOFTWARE FOR INDUSTRIAL MANUFACTURING APPLICATIONS • Rationale:Agriculture remains the region's foundational industry, but its 0 Rationale:As physical products integrate with digital intelligence, demand competitiveness depends on adoption of automation, robotics, sensing, for embedded software, IoT(Internet of Things), and edge computing and precision irrigation. The region itself becomes a natural testbed and grows. These firms tend to be agile, innovation-driven, and highly scalable. customer base for ag-tech innovation. • Regional Fit: CWU's computer science and IT faculty provide an ongoing • Regional Fit: CWU's environmental sciences, IT, and ag business supply of software developers and data specialists, positioning Old Heat as programs supply research and commercialization pathways. Proximity to a training and placement hub. Yakima Valley processors and farms enables real-time product testing. • On-Ramp/Launch Pad Role: Existing farms and equipment manufacturers • On-Ramp/Launch Pad Role: Regional manufacturers can adopt embedded can "step on-ramp"through Old Heat to pilot advanced technologies, systems designed in Old Heat, while startups gain direct access to physical industry partners for co-location and prototyping. while new ag-tech startups can launch into local markets before scaling nationally. • Multiplier Potential: When co-located with aerospace, ag-tech, or clean- Tech Diffusion:ACTI's Tech Lift Specialist program (if funded)would extend tech tenants embedded systems firms catalyze vertical integration and accelerate technology spillovers. Old Heat's resources into underserved communities, providing mobile technology enablement for producers and processors. 3.ADVANCED MATERIALS AND CLEAN TECHNOLOGY • Rationale: Global shifts toward decarbonization and sustainable manufacturing drive demand for new materials, composites, and clean production systems. Such firms seek R&D-friendly sites that are outside Old Heat CERB Feasibility Study 141 5. SCIENTIFIC INSTRUMENTATION, PROTOTYPING,AND APPLIED R&D INDUSTRIES NOT TARGETED • Rationale: Small-batch, high-value instrumentation firms thrive in To preserve Old Heat's mission, the following are explicitly not targeted: university-adjacent environments, where prototyping, rapid iteration, and • Low-wage service or retail enterprises without multiplier effects. faculty/student collaborations are possible. • Externally owned firms with minimal local reinvestment. • Regional Fit: CWU's faculty-led applied research programs and student talent pool can support prototyping, testing, and small-run manufacturing. • Firms with low technological intensity or innovation potential. • On-Ramp/Launch Pad Role: Old Heat becomes the prototype funnel, • This ensures Old Heat functions as a strategic inflection point, shifting helping firms move from design and testing toward scalable production at Kittitas County's economy toward accelerative industries while lifting Bowers Field. existing firms onto higher-value pathways. • Future Opportunity: Instrumentation firms may anchor collaborations across sectors, serving as technology suppliers to ag-tech, aerospace, and clean-tech enterprises. ENABLING INSTITUTIONAL INFRASTRUCTURE: THE ACTI PROGRAM A crucial complement to Old Heat's tenant strategy is CWU's proposed Advanced Competitive Technology Institute (ACTT). If funded,ACTI would provide: • Monthly training in advanced technologies (Al, robotics, 3D printing, simulation). • TechLift Specialists to deliver on-site technology adoption support to small and mid-sized businesses. • A talent pipeline that bridges CWU students, local firms, and regional industries. This advances the larger goal of leveraging Old Heat as an instrument to create accelerative industries through collaboration with the county and CWU to help local businesses integrate advanced technology into their current business models. This increases their competitiveness and transitions the nature of their local economic ecosystem impact towards accelerative rather than retentive or additive models. 42 1 Old Heat CERB Feasibility Study • , this way, the Director functions not only as a manager, but also as a strategic gatekeeper aligning Old Heat's activity mix with its purpose of catalyzing high- wage, innovation-driven growth. IDENTIFICATION OF THE GROUP RESPONSIBLE FOR PUBLIC ENGAGEMENT IMPLEMENTING THE MARKETING STRATEGY. DESCRIBE THE GROUP'S CAPACITY TO COMPLETE THE RESPONSIBILITY. The Kittitas County government, under the direction of the Board of Commissioners, will provide strategic engagement and support for alignment with the community's current and future needs, ensuring that Old Heat's deployment The implementation structure for Old Heat is designed to ensure accountability reflects countywide priorities for economic diversification and high-wage job to the project's four core objectives: creating high-wage employment, creation. Commissioners will collaborate with CWU and other stakeholders to commercializing and diffusing technology statewide, reusing state assets shape strategic direction and inform priority-setting, particularly as Old Heat efficiently, and modeling a replicable Eastern—Western Washingotn economic expands its role as a regional commercialization hub. alignment. Each participating entity plays a defined role in advancing one or more of these objectives through coordinated management, stakeholder The Kittitas County Conference of Governments has taken a substantial leading engagement, and public oversight. role in the region's economic development.Along with the KCCOG, the Kittitas County Department of Public works (Bowers Field managing entity), the Kittitas The Old Heat Project will be managed through a collaborative governance County Chamber of Commerce, and private industry partners, will serve as structure that ensures both operational focus and strategic alignment with advisors and collaborators. Their engagement will help align Old Heat's activities regional economic development priorities. with the needs of regional businesses, supply chains, and community partners, reinforcing its role as a multi-sector innovation platform. OPERATIONAL MANAGEMENT CAPACITY TO IMPLEMENT The CWU BCS Director will serve as the lead manager of Old Heat's activities. This role provides direct oversight of day-to-day operations, program deployment, The combined capacity of CWU's BCS Director, Kittitas County and regional and alignment of Old Heat's facilities with its strategic foci: commercialization, partners provide a robust structure for implementation. CWU contributes advanced manufacturing, agricultural technology, entrepreneurship support, institutional infrastructure, faculty and student engagement, applied research, technology infusion, and workforce development. The BCS Director brings and workforce development capabilities. The County provides legitimacy, public institutional resources, professional staff, and applied research capabilities accountability, and access to regional planning frameworks. The Chamber of from CWU to ensure that Old Heat's programs are executed effectively and tied Commerce and private partners bring essential connections to local and state to measurable outcomes. More importantly, the Director will maintain Old Heat's business networks, ensuring that Old Heat maintains market relevance and long- integrity by ensuring that tenants and activities are focused on accelerative term sustainability. and multiplicative enterprises, as defined by the BCS Regional Contribution Continuum (RCC). Together, this structure balances operational execution with public accountability and private-sector engagement. It positions Old Heat not simply as a facility, This safeguard prevents mission drift into low growth, extractive or low-wage but as a coordinated regional enterprise capable of delivering on its marketing service ventures, which do not advance long-term prosperity in the region. In strategy and sustaining its role as a catalyst for economic development. Old Heat CERB Feasibility Study 143 LA The site's appropriateness by addressing, at minimum, appropriate zoning, affect to the state or local transportation p system, environmental restrictions, cultural artifact investigation, and the site's overall adequacy to support the anticipated development upon project completion. 40 The Old Heat Building presents a potential opportunity for this proposed project. This historic 18,000 sq. ft. brick facility, distinguished by its iconic smokestack visible across the downtown area, sits on a substantial three-acre parcel at 509 E 7th Ave. Its Public Reserve (P-R) zoning is a significant asset.According to - 6, ..a. ILA the Ellensburg City Code Chapter 15.300.0701 "the P-R zone is a special use Image Credit: CWU Website classification established to provide existing and future areas where public uses, such as, but not limited to, governmental, educational, recreational, cultural, and allows for substantial expansion of parking areas as part of a comprehensive other public uses operated by a public entity may be allowed to develop. It is redevelopment plan. anticipated that the uses allowed may be unique and may involve a combination of uses not permitted outright in any other zoning districts."This zoning allows for The building's existing size is a considerable advantage, offering greater combinations of uses not otherwise allowed in the city of Ellensburg, making a possibilities for larger capacities rather than starting new construction community building an encouraged and ideal fit for the site. from scratch and potentially reducing overall project timelines and certain development costs. However, investors should be aware that, as a historic A key advantage is the property's strategic location at the edge of the CWU structure, renovations will likely require review and approval from the Ellensburg campus. CWU has expressed strong interest in collaborating with Kittitas County Landmarks & Design Commission to ensure compliance with preservation and the City of Ellensburg to foster deeper connections with the community, guidelines. This process, while adding a layer of complexity, also protects and the adaptive reuse of the Old Heat Building aligns perfectly with this goal. the building's historical integrity, which can be a strong marketing point for This underscores the collaborative spirit and investment already being directed community buy-in and grant opportunities. towards the building, potentially opening doors for integrated or complementary community functions within the broader modernization project. In conclusion, the Old Heat Building offers an unparalleled opportunity for investors seeking to develop a community hub in Ellensburg. Its favorable From a practical standpoint, the property benefits from excellent pedestrian zoning, strategic location between the CWU campus and the City of Ellensburg, access due to its downtown location and surrounding sidewalks. It is also excellent accessibility, and inherent historical character present a compelling conveniently located within two blocks of multiple transit stops, enhancing foundation for a successful project. While renovation and parking expansion accessibility for a wide range of community members. The ample lawn space will require careful planning and investment, the potential for a community surrounding the building offers significant potential for outdoor events and asset, supported by existing inter-agency collaboration, makes this property public gatherings. While parking is currently limited, the generous parcel size exceptionally attractive. 44 1 Old Heat CERB Feasibility Study SECTION No specific cultural artifact investigations have been noted for this site. However, given its historical status, any significant ground disturbances or structural changes might require archaeological assessments to ensure compliance with preservation standards. A LOCATION ANALYSIS OF OTHER ADEQUATELY SERVED Located in downtown Ellensburg, the site benefits from existing infrastructure VACANT INDUSTRIAL LAND. designed to accommodate commercial activities. The city's Comprehensive Plan includes transportation improvements aimed at enhancing pedestrian and 420 North Pearl Street in Ellensburg,WA vehicular access in the downtown area. Given the property's central location and existing infrastructure, the development of a commercialization center is unlikely This site appears to be a promising candidate for a commercialization center to impose significant negative impacts on state or local transportation systems. in collaboration with public entities, Central Washington University(CWU), and private sector businesses. Here's an assessment of the key factors: Considering its favorable zoning, strategic proximity to CWU, and existing infrastructure, 420 North Pearl Street appears to be a suitable location for The property is situated within the Central Commercial (CC)zoning district, establishing a commercialization center. Nonetheless, due to its historical as indicated by the City of Ellensburg's zoning map. This zoning classification designation, it is advisable to engage with the City of Ellensburg's Planning permits a variety of commercial uses including retail, office spaces, and mixed- Division and Landmarks & Design Commission early in the planning process use developments, making it conducive to a commercialization center. However, to navigate any preservation requirements and ensure compliance with local specific uses may require adherence to design standards or regulations.2 obtaining conditional use permits. 420 North Pearl Street is located approximately 0.3 miles north of CWU's main campus, translating to a 5-1 0-minute walk. This proximity facilitates convenient collaboration with university departments, faculty, and students, aligning well with the objectives of a commercialization center. The property is a historic building, originally the National Bank of Ellensburg, designed by Carl Gould and restored by Mollie Edson.As such, any renovations ' or developments may be subject to review by the city's Landmarks & Design = Commission to ensure preservation of historical integrity. Regarding environmental regulations, the City of Ellensburg adheres to the State _ T1 Environmental Policy Act(SEPA), which mandates environmental reviews for certain projects. Depending on the scope of the proposed commercialization center, a SEPA review may be necessary to assess potential environmental impacts. , . Exhibit 4: North Pearl Street i Old Heat CERB Feasibility Study 145 1200 S Canyon Road in Ellensburg, This property is situated on 1.46 acres within the city's Commercial Highway .. rt zoning district and features a substantial 14,000 square foot building with ample _ .3-• s paved parking. Its strategic location directly on Canyon Road, Ellensburg's primary retail corridor, places it between established automotive businesses, Les Schwab and Windy Chevrolet, and offers direct street frontage on both Canyon Road and Ruby Street. The property is relatively accessible with a sidewalk providing pedestrian access and proximity of approximately 0.2 miles to the nearest bus stop and 0.3 miles to Central Washington University. Environmental assessments have indicated no identified issues with the property. ;- .� - VW However, despite these attributes, the suitability of this location for the proposed K �'.., �� community building is subject to considerable disadvantages. The property's ; V` immediate adjacency to one of Ellensburg's highest traffic volume thoroughfares, most especially being located a half mile away from the western Interstate-90 y y interchange, and its position within a predominantly transient commercial zone could significantly detract from the desired quiet atmosphere. Exhibit 5: Canyon Rd The adjacent property uses, specifically a vehicle dealership and auto repair MEN— shop, are fundamentally incompatible with fostering increased pedestrian traffic and creating a welcoming, neighborhood-oriented environment. While the existing structure offers substantial square footage, its prior use as a dealership overflow and general retail space may necessitate extensive and - costly retrofitting to meet the diverse functional requirements and accessibility --- standards of a modern community facility.' Image Credit:Loopnet 46 Old Heat CERB Feasibility Study 8270 Tjossem Road in Ellensburg, WA $3,000,000 Spanning 12.42 acres and zoned Commercial Agriculture within Kittitas County, this property currently features five industrial buildings totaling approximately 127,200 square feet. These structures include current uses such as distribution, P" ., heavy processing, workshop, and storage facilities, along with 1,200 square feet of office space. The site benefits from its strategic location directly off Exit 115 on 1-90, boasting heavy power and gas onsite, reinforced concrete slabs, a truck .,• w ' dock, security system, an income-generating truck scale, a high-volume well, and fiber internet access. Notably, no environmental issues have been identified. While the existing infrastructure and large acreage present potential advantages, such as offering significant space for reconfiguration and outdoor amenities, the property's Commercial Agriculture zoning poses a significant hurdle. This zoning aims to preserve farmland and agricultural operations, and while some "cultural and educational facilities" might be conditionally permitted, a large- scale community building generating substantial public traffic would not align with the zone's primary intent, likely facing considerable regulatory challenges. Exhibit 6: Tjossem Road The rural setting, approximately 4.5 miles from Central Washington University and well outside Ellensburg city limits, creates further drawbacks. The absence of sidewalks and nearby bus stops limits accessibility for those without personal vehicles, excluding segments of the community. Introducing consistent, high-volume traffic onto these rural agricultural roads is also problematic; these roads are not designed for such intensity, leading to potential congestion, safety concerns, and disruption to adjacent farming and industrial operations. Furthermore, being situated amidst active farms and industrial facilities could lead to conflicts regarding noise, dust, odors, and safety for community members. Ultimately, despite its size and existing structures, this property's zoning conflicts, and rural complications make it an unsuitable choice - � for the project.' it a Image Credit:Loopnet Old Heat CERB Feasibility Study 47 1304 W University Way in Ellensburg,WA $3,350,000 } This property, currently operating as Rodeo City Self Storage, sits directly within Ellensburg city limits and is zoned Commercial Highway with no reported environmental issues. Built in 2004, the existing facility features 18,058 square y feet of self-storage units. This 1.24-acre parcel boasts direct access into the city via University Way, a primary road leading to Central Washington University, . about 1.5 miles away. Pedestrian access is also an asset, with the nearest bus stop less than 0.2 miles ' from the property. While the location offers high visibility and proximity to nearby residential areas and CWU, converting it into a community building would present significant challenges that likely outweigh any benefits. As a highly operational Exhibit 7: University Way and profitable self-storage facility, this property would require complete and costly demolition and redevelopment. The specialized infrastructure of a storage facility would not be compatible with the spatial and functional needs of a public community center, demanding substantial investment in renovation or new construction. Furthermore, a critical limitation for any public facility is the severe lack of f adequate on-site parking. The 1.24-acre lot is mostly developed with storage units and drive aisles, making it insufficient to handle the parking demands of a community building, which would naturally attract considerable vehicle traffic. The elongated, rectangular shape of the parcel also restricts flexible architectural design, potentially compromising the optimal layout and functionality needed for a multi-purpose community space. Given these substantial hurdles, this property ..- would not be a suitable fit for the proposed community building project.' � yalO �J LF'Sfr = Image Credit:Loopnet 48 Old Heat CERB Feasibility Study 309 N Pearl Street in Ellensburg, WA $935,000 The "Boss Bakery" building within Ellensburg's Historic District in Central Commercial (CC) city zoning presents a potential opportunity for the project. Constructed in 1889, this two-story, 6,079 square foot property is a significant +� part of Ellensburg's original downtown fabric. Its prime location offers excellent y+= i L •i a walkability, situated approximately 0.3 miles from Central Washington University �=' and less than 0.2 miles from the nearest public transit stop, enhancing its accessibility. Furthermore, environmental assessments have reported no �00� }� significant issues. However, a comprehensive evaluation reveals substantial challenges that diminish its feasibility as a community building. Given its designation within a historic district, any renovations or alterations, particularly to Pearl the exterior, would be subject to rigorous review and approval by the Ellensburg Exhibit 8:Pear St Landmarks and Design Commission. This often necessitates the preservation of original elements, which can significantly increase renovation costs and extend project timelines compared to non-historic properties. Mt The building's second floor currently comprises four residential loft-style L 44.. apartments, requiring complete redevelopment to align with community building _ -- ---- - objectives. This conversion would not only involve extensive interior demolition - ' and reconstruction but also potentially displace existing tenants, including k-` rr T`+ Mariposa Health and Wellness, a local business occupying the first floor, which could lead to public relations and logistical complications. Moreover, the building's fixed footprint on a 0.08-acre lot offers no opportunity for expansion, limiting its capacity to host large-scale community events or accommodate diverse h, programming. A critical impediment is the severe parking constraint in the immediate vicinity of Pearl Street. Downtown Ellensburg consistently faces parking shortages, and this property offers no dedicated on-site parking or the opportunity to create such an I x a area, a significant drawback for a facility intended to draw community members, .t .. . . especially those traveling by vehicle. The cumulative effect of these drawbacks renders this property a highly unfeasible option for a public community center.' Exhibit 8:Pear St Old Heat CERB Feasibility Study 49 32 Thorp Hwy S in Ellensburg, WA This restrictive zoning significantly curtails the scope and type of development $7,295,000 allowable, making it highly challenging to undertake the extensive renovations and changes of use necessary to convert the existing campground facilities into a This property, currently operating as a well-established KOA campground, functional community center. These substantial limitations collectively indicate that presents an initial consideration for a potential community building due to its this property is largely unsuitable for the proposed community building project.' substantial 15.72-acre expanse. This site is within the Ellensburg Urban Growth area under the General Commercial County zone and contains a diverse array 6 , of existing facilities, including four deluxe cabins, a furnished apartment, and a `v. single-wide mobile home. ` r Additionally, the significant open space could theoretically accommodate outdoor . ' community events. The property's proximity to the 1-90 western exit could also -'v % be perceived as a potential advantage for regional accessibility. However, a {i ` comprehensive evaluation reveals significant challenges that render this location less than ideal for a public community center. Accessibility for the public is a primary concern, as the nearest public transit stop is approximately 0.5 miles northeast at Loves Travel Stop, a gas station. - r Reaching the property from the interstate requires navigating the heavily trafficked roundabout at the 1-90 Exit 106 interchange and crossing the consistently busy overpass, with a notable absence of pedestrian infrastructure such as sidewalks in the surrounding area, posing safety and logistical issues for non-vehicular access. Exhibit 9: Thorp Hwy Furthermore, its distance from Central Washington University (approximately A � T 2.5 miles) may limit its direct utility for the student population without improved connectivity. More critically, the property is subject to considerable environmental ' *' and zoning restrictions. A significant portion of the site lies within the Yakima River floodway, an area where new construction is generally prohibited. 4 i The entire property is designated under the "Urban Conservancy" shorelines - master plan (SMP). According to Chapter 13 of the Washington State Department of Ecology's SMP handbook, this designation primarily permits uses that "preserve the natural character of the area or promote preservation of open ' space, flood plain or sensitive lands"' Image Credit:Zillow yy K 50 Old Heat CERB FeasibilityStudy Y 1011 E University Way in Ellensburg, $599,950 1011 E University Way This 0.32-acre lot, zoned Commercial Highway by the city, is situated along Aerial Map University Way, a primary road. It is nestled between Winegar's and Subway and is in close proximity to Central Washington University(CWU). Its adjacency to CWU, with various university facilities accessible within a two-block radius, offers excellent pedestrian access. Furthermore, the property benefits from being within one to four blocks of multiple public transit stops, enhancing its accessibility for a =` broader population. There are no reported environmental issues with the property. However, thesuitabilityof this articular property for a large-scale community building is p p p Y g Y 9 � significantly limited by several factors. The diminutive size of the 0.32-acre lot offers virtually no room for expansion beyond the initial footprint, which could ' severely restrict the scale and scope of community events or facilities that could ,a be accommodated. Additionally, the immediate vicinity lacks adequate parking, posing a significant logistical challenge for events attracting a large number of �- attendees. Bowers Rd — While the property's direct adjacency to the Kittitas County Fairgrounds might , suggest a potential for shared parking arrangements with the county, this prospect a 'N Bender Rd 3ndn �.Rd introduces its own set of complications. Such a partnership would necessitate Legend formal agreements and could lead to substantial congestion during simultaneous „ L ,�",W29"81W l, events at both the proposed site and the Fairgrounds, particularly during major °� M'a° aW t R `annual events like the Ellensburg Rodeo. f CWU El . ■ AW w��, Ultimately, the constrained land area and inherent parking limitations of this t' ` ; s ■ site appear to be fundamentally incompatible with the desired capacity for T� * M �� ■ wb hosting significant community gatherings, making it a suboptimal choice for a =F Transh Siopz comprehensive community building.' E3rdAve JT E,s+Aw Old Heat Building. T i r: h 1(ittiias,wY v ��.rr� � McCv<Loughrtd c Y s Exhibits 10 & 11: University Way& Transit Route Map 1`I Old Heat CERB Feasibility Study 151 From Q4 2025 through Q2 2026, the effort turns to Olympia, where efforts will be made to pursue a state capital-budget earmark during the 2026 legislative session. While this legislative push is underway, the beginning momentum for TOTAL FUNDING FOR THE PUBLIC FACILITIES IMPROVEMENTS private fundraising will be started in the capital campaign. IS SECURED OR WILL BE SECURED WITHIN A GIVEN TIMEFRAME. Starting in Q1 2026 and running through Q2 2027, the quiet phase of the capital campaign will secure anchor gifts and naming rights, with a goal of achieving 40 percent of the private fundraising target before the public campaign is launched. Central Washington University is well positioned to leverage relationships developed over decades to mature the capital stacking plan to renovate Old In parallel, a second round of state advocacy will take place in Q3 2026 through Heat. CWU Business and Community Services (BCS) is a strategic economic Q2 2027, refining the request to complete the state's share of the project funding development services provider for the region and state. It is well positioned to during the 2027 legislative session.At the same time, a rolling grant calendar lead this effort in close collaboration with local government partners and non- begins in Q2 2026 and continues through Q4 2028 with the grant-writing profits. BCS actively develops and maintains relationships with businesses in consultant targeting $6-8 million from federal, state, and private foundation advanced manufacturing including the aerospace industry. There are investors sources. on the West side who have shown interest in Old Heat. There are medium and large businesses in the Central Washington region that may be interested The funding timeline is sequenced so that state appropriations, corporate and once plans are more developed. Current discussions with them are focused on private pledges, and grant awards are secured before the execution of the capstone projects and pilots. One large manufacturer has been looking for space construction contract, ensuring a fully financed project at notice-to-proceed. in Central Washington for years and ended up locating overseas due to lack of opportunities here. They are looking into coming back; Old Heat and Bowers Partners in Old Heat in its founding days will not be just passive support but Field might be just the space they are looking for. active investors of their time and resources to bring the project to fruition. Stakeholders see the project as a catalytic investment in the community and are Through these efforts a capital stacking plan can be developed to augment the ready to play a role in making it a reality—whether by giving, connecting, or financing of the Old Heat renovation. Sponsorship and naming rights are key leading. This collective enthusiasm provides a strong foundation for launching components of a capital stacking revenue plan. Relationships with industry and the capital campaign and signals a promising path forward. the regional community through CWU can establish prospect pipelines. A proposed timeline for these efforts on next page: The project launches in Q4 2025 with legislative briefings and the formation of an advisory board. During this phase, requests for proposals (RFPs)for both a capital campaign consultant and a grant-writing consultant can be issued if it is determined the work will not be performed by BCS or economic development staffing. This work could take on a hybrid structure utilizing contract work when needed. 52 1 Old Heat CERB Feasibility Study M 0 Timeline of Key Action Items (Quarterly) CERB Study Draft presented to commissioners im Final CERB report(design of operations included) Start legislative briefing Advisory Board Formed Community Capital Campaign Ongoing grant writing COG hires Econ Dev Director Design Phase 1 construction Exhibits 12:Estimated Project Timeline Old Heat CERB Feasibility Study 153 • By contrast, Washington State employed more than 4.8 million people across 492 industries in 2023. Its normalized Shannon-Weaver Index was slightly lower at 0.78, reflecting concentration in high-value industries such as aerospace, software, logistics, and life sciences. These concentrations are features of a HOW THE OLD HEAT PROJECT WILL ASSIST LOCAL high-performing economy, not vulnerabilities, because they are tied to innovation- ECONOMIC DIVERSIFICATION EFFORTS intensive clusters with spillover effects and global market reach. The Herfindahl-Hirschman Index (HHI), a commonly used measure of market The diversification strategy described in this section directly advances Old concentration, underscores this point. The HHI is used to study competition, Heat's four core objectives: creating high-wage employment, commercializing pricing power, and market efficiency. Kittitas County's HHI is 0.020, significantly and diffusing technology statewide, reusing state assets efficiently, and higher than the state average of 0.012—a 67% greater concentration. This modeling a replicable Eastern—Western Washington economic alignment. Each strongly suggests that Kittitas County's economy is over-reliant on a few low- diversification pathway that follows illustrates how these objectives translate into wage industries and underexposed to the types of high-value clusters that measurable local and statewide economic outcomes. generate economic resilience. The Old Heat project is designed to reshape the structural trajectory of the Kittitas County's 2023 median wage was $65,208, while Washington State's Kittitas County economy. Instead of relying on incremental changes within was$89,138. The low wages of the primary industries of the county combined existing low-wage, low-growth industries, it introduces a catalytic platform that with the increasing costs of living make outmigration of highly skilled workers shifts the region toward innovation-intensive, higher-value industries. Its purpose a significant challenge for the communities in the county. Table (1) shows is twofold: to serve as an on-ramp for existing businesses to integrate advanced select industries of the county (food manufacturing, brewing, restaurants, arts, technologies and become more competitive, and as a launch pad for new entertainment, and recreation), none of which provide salaries that support a enterprises that build directly into state and national industry clusters. In this way, median-priced home in the region. This compares to the median wages of the Old Heat strengthens diversification not simply by adding more sectors, but by focal industries of the Old Heat project (aerospace, communication technology, embedding industries with the highest potential for wage growth, resilience, and agricultural machinery), all of which provide salaries that make median house long-term economic impact. price purchases within reach of workers in the county. CURRENT ECONOMIC STRUCTURE AND RISKS OLD HEAT AS A DIVERSIFICATION CATALYST As of 2023, Kittitas County employed 25,377 individuals across 207 industries. Rather than trying to incrementally improve the economic ecosystem with its On the surface, the Normalized Shannon-Weaver Index for the county is limited scope of lower-wage industries that are artificially suppressed by the 0.83, suggesting a relatively even distribution of employment across sectors. absence of the high-wage industries prevalent in the larger Washington State However, this masks a deeper structural issue: Kittitas County's employment is region, the Old Heat project creates a structural inflection point. It will diversify evenly distributed across a narrow set of lower-value industries. These include the economy by introducing advanced industries into the regional ecosystem, education, public sector employment, hospitality, and retail. These sectors embedding them within CWU-linked infrastructure, and building feedback service the local economy but generate little outside revenue, which leaves the loops between business, workforce development, and applied research. This region highly vulnerable to labor shifts, automation, and fluctuations in consumer diversification occurs through four interconnected mechanisms: spending. 54 1 Old Heat CERB Feasibility Study 1. New Industry Entry WORKFORCE DEVELOPMENT AND LIVING-WAGE JOBS • Old Heat provides the initial platform for aerospace suppliers, agricultural technology firms, advanced materials companies, and embedded Two critical components of regional diversification involve both the ability to systems developers to establish a foothold in Kittitas County. prepare and retain talent. Old Heat aligns with CWU's mission as a steward of • These sectors bring in outside revenue and integrate with supply chains place by training students, graduates, and residents for high-skill, high-wage in adjacent metro economies such as King County and Yakima Valley. roles. • Over time, this entry fosters local cluster formation, allowing smaller firms to grow alongside and service anchor industries. This includes: • Entrepreneurship and innovation training through workshops, bootcamps, 2. Technology Diffusion into Legacy Sectors and credit-bearing courses. • Through ACTI's proposed training and technology integration programs, Old Heat acts as an on-ramp for existing businesses. This would involve • Internships and applied projects linking CWU students with Old Heat helping local firms adopt Al, robotics, sensing, and blockchain systems. tenants, ensuring local graduates see viable career pathways without • This transition upgrades legacy industries into hybrid models (e.g., smart leaving the region. agriculture, digitally integrated tourism), which raises productivity and wages in existing businesses while expanding the industrial diversity • Upskilling Programs for the existing workforce, focused on digital tools, of the region by converting "Additive"and "Retentive" enterprises into software, and advanced manufacturing practices. accelerative base industries, contributing to further growth. The deployment of Old Heat towards and within high-value industry activities 3. Cross-Sector Convergence leads to a multiplier cycle of economic returns where the input needs of the • Old Heat deliberately encourages the fusion of industries such as business activity, as well as the engagement by the high-wage employees within agriculture with smart equipment, aerospace with embedded software, the local economic ecosystem leads to further economic impacts in the local and manufacturing with clean technologies. system. This increases the purchasing and business activities of the other local • This convergence creates new hybrid industries that are rooted locally businesses to further enrich the local supply chains in a ripple effect that benefits but competitive globally, adding depth and variety to the economic base both the local businesses as well as the local government's revenue and ability to while establishing an intellectual property platform. fund and improve infrastructure. 4. Institutional Integration Tables 2 and 3 show the estimated impacts of agriculture manufacturing, • CWU's applied programs provide a constant stream of talent and aerospace manufacturing, using IMPLAN modeling and assuming Old Heat as research that feeds into Old Heat. only a raw space for those industry activities rather than a continual funnel or • In return, commercialization and entrepreneurship activities ensure staging area for advance industry to move into the area. that knowledge and know-how lead to positive "spill-over"of regional capabilities, resulting in the creation of patents, and high-value employment. • The result is a system where innovation becomes an embedded feature of the economy, not an occasional event. Old Heat CERB Feasibility Study 155 • _ WORKFORCE DEVELOPMENT AND LIVING-WAGE JOBS N Labor Value By embedding workforce development within its operations, Old Heat ensures that diversification Ag Mfg $1,114 $7.8M 1 - Direct 11$107,633 $1,158,449$1,990,900 $7,798,000 translates into tangible wage gains and career opportunities for residents. 2 - Indirect 2.8 $185,975 $380,780 $707,353 STRENGTHENING LOCAL ASSETS AND REAL 3 - Induced 2.6 $117,778 $339,073 $500,671 ESTATE 16 $1,462,201 $2,710,753 $9,006,023 Diversification also depends on how new firms interact Table 6:Agricultural Industry Analysis with the local built environment. Old Heat demonstrates adaptive reuse through its own renovation and becomes a magnet for activity that revitalizes surrounding commercial districts.As businesses transition from the Old Heat facility, they will occupy larger commercial and industrial spaces within Ellensburg and Kittitas County. This leads to repurposing underutilized buildings, such as what is involved with the community's Bowers Field Avg Labor lj,&-LigA�M projects and contributing to rising property values and tax NNEN. ncome _ , _ . revenues. This physical expansion is a critical indicator of Aerospace diversification, showing that economic growth is spreading Mfg $2,428 $17.OM 1 - Direct 26$157,456 $4,248,173 $8,839,870 $16,996,000 beyond a single site and embedding itself across the ' 2 - Indirect 1.6 $111,074 $250,960 $517,270 community. 3 - Induced 8.1 $369,723 $1,064,581 $1,571,654 TOURISM, EVENTS,AND LODGING Old Heat will generate stead streams of visitors through Totals 36 $4,728,970 $10,155,409 $19,088,924 g Y g accelerator cohorts, innovation conferences, and training Table 7:Aerospace Industry Analysis events. These activities diversify the local economy into Both Tables'Wages Based On 2023 National Wage Rates, Us Bureau Of Labor Statistics higher-value revenue streams that further strengthen tourism and lodging beyond the seasonal cycle. Importantly, they connect Ellensburg to broader regional innovation networks, reinforcing its emerging identity as a hub for the Central Washington region. This generates a lift for the existing but underutilized service sector 56 1 Old Heat CERB Feasibility Study ("retentive enterprises"), inducing demand that • Reduced economic concentration, as shown by shifts in the Shannon- facilitates higher wage capabilities of local businesses. Weaver and HHI indexes toward a more balanced, higher-value distribution. WASHINGTON STATE SUPPLY CHAIN INTEGRATION • Integration into statewide innovation clusters, positioning Ellensburg as a key node in aerospace, ag-tech, and clean-technology supply chains. Old Heat is also designed to position Kittitas County as a connector within Washington's broader high-value supply chains. The facility creates a link Given the urgent needs of the Kittitas County Region to address low wage between Yakima County's agriculture industry, King County's aerospace stagnation, the Old Heat project is strongly focused on ensuring the area has sector, and Wenatchee's emergent clean energy and technology industries. flexibility and resiliency to readily absorb new technology and economic sectors For Yakima County, Old Heat provides a commercialization site for agricultural into the local economy's historic foundational elements. By serving as an on- equipment and smart technology firms that can pilot and scale innovations ramp for legacy firms and a launch pad for new enterprises, Old Heat directly tested in the area's farms and processors. For King County's aerospace sector, addresses the region's historic over-reliance on low-wage service industries. Old Heat offers an affordable launch pad for smaller aerospace and precision Its role as an "accelerator of accelerators" ensures that diversification is deeply component suppliers that must remain within proximity of Puget Sound but embedded in the capabilities of the region, its workforce, and its institutions. cannot absorb Seattle's escalating costs. For Wenatchee, Old Heat functions as The outcome is a more diverse, resilient, and competitive economy that is able a complementary node, supporting applied research ventures and technology to sustain growth, retain talent, and drive innovation for the larger regional and firms whose products are an integration of energy, computing, and agricultural State economies. markets. The IMPLAN results demonstrate how these supply chain linkages translate into measurable impact. The projected aerospace and precision component manufacturing activity associated with Old Heat generates some of the highest employment multipliers in the analysis, indicating strong downstream effects across professional, technical, and support services. Similarly, the agricultural technology sector modeled in IMPLAN produces a significant output per worker, - .. T "' showing the potential to raise productivity and wages in one of the region's E . historically lower-wage industries. Clean technology and advanced materials exhibit robust indirect and induced impacts, reinforcing Old Heat's role as a platform for industries with broad spillover effects. LONG-TERM OUTCOMES By 2030, the expected impacts of Old Heat's diversification role include: • Expanded industry mixes with measurable growth in advanced technology sectors. • Retention of local graduates and reduction in talent out-migration. • A more resilient wage base, with an increasing share of jobs above county s, median income. Old Heat CERB Feasibility Study 157 • 4. Economic Vulnerability Due to Industry Concentration Kittitas County's overreliance on a narrow band of industries makes it vulnerable to downturns in agriculture, tourism, or seasonal sectors. The region lacks economic diversity, making it harder to absorb shocks or INDICATE THE SPECIFIC ISSUES THAT WILL BE ADDRESSED. adapt to technological shifts. 5. Barriers to Technology Adoption by Local Businesses Indicate the specific issues that will be addressed. Small and mid-sized firms in the region often lack awareness, resources, The issues outlined in this section directly correspond to the four core objectives or skilled personnel to adopt advanced technologies like automation, digital of the Old Heat project: creating high-wage employment, commercializing and platforms, and Al. The proposed ACTI program—if funded—would play a diffusing technology statewide, reusing state assets efficiently, and modeling a vital role in closing this"technology literacy gap." replicable Eastern—Western Washington economic alignment. Each challenge identified below represents a barrier these objectives are designed to overcome, 6. Limited Regional Integration to Attract High-Wage Industries and together they define the scope of transformation the project will deliver. Kittitas County lacks strong ties to nearby Metropolitan Statistical Areas like Seattle and Yakima in high-wage supply chains. The Old Heat project The Old Heat project is designed to address several longstanding and addresses this by creating a platform that connects the region to metro- interrelated economic development challenges in Kittitas County and the area supply chains and talent networks. This would make Ellensburg a surrounding region: competitive location for advanced manufacturing, ag-tech, and aerospace- related enterprises looking to reshore operations and to expand outside of 1. Lack of High-Wage, Innovation-Driven Employment their metro centers. Kittitas County's job base is heavily concentrated in low-wage sectors such as retail, hospitality, and commoditized production. The absence of local Together, these issues contribute to a pattern of economic underperformance, firms in advanced manufacturing, technology, or engineering-intensive talent loss, and missed opportunities for long-term growth. The Old Heat fields has constrained both wage growth and economic mobility for project directly addresses these challenges by serving as a catalyst for regional residents. It has also limited the career scope of local youth wanting to stay economic development enabling the region to retain its talent, diversify its in the region in their choices towards a STEM education. economy, and build resilience in a rapidly changing economic landscape. 2. Outmigration of Skilled Talent Due to limited career opportunities in high-skill fields, particularly in STEM • Workforce Development: Equipping the local labor force with skills and and applied technology, the region experiences a regular outflow of college experience for emerging industries. graduates and young professionals. This "brain drain"weakens the long- term development potential of the local economy. • Utilization of Commercial Properties: Filling and revitalizing vacant or underutilized commercial real estate through business leasing and property 3. Absence of Innovation Infrastructure sales. The region lacks facilities and institutional mechanisms—such as incubators, accelerators, or technology offices—that connect research, • Increased Lodging Demand:Attracting visitors via conferences, events, workforce development, and business creation. This disconnect limits the and accelerator programs, thereby boosting hotel occupancy. region's ability to launch and retain innovative firms. 58 1 Old Heat CERB Feasibility Study ■ Economic Diversification: Broadening the industry base beyond traditional sectors (e.g. government, agriculture) to include technology, innovation, and knowledge industries. ■ Creation of Living-Wage Jobs: Fostering new jobs that pay sustainable, competitive wages. ■ Enhanced Tax Revenues: Growing the local tax base (sales, property, lodging taxes) through business and visitor activity. ■ Stronger Partnerships & Innovation: Building private-sector partnerships, talent pipelines for students, and increasing research commercialization (patents and licensing). i - -.n■u■.un unnn � ■� ■ �a Old Heat CERB Feasibility Study 59 • 6. Increased Tax Revenue • Startup sales generate local sales and B&O taxes; occupied properties raise assessments. • Events boost lodging tax. LIST ONE OR MORE ECONOMIC OUTCOMES THAT YOU Long-term goal: >$500,000 additional local taxes annually by year 10. EXPECT FROM THE PROPOSED CERB PROJECT. 7. Partnerships, Talent Pipelines & Patents • Form an Industry Advisory Board for sponsorships &guidance. Old Heat will become a facility on the edge of the CWU campus for business and Run an "Innovation Fellows" program linking students to startups. university to collaborate on technology initiatives. It will have adequate parking, Hire a Tech Officer; seed mini-grants for prototypes. and the building will provide much-needed event and conference space in the city of Ellensburg. Implemented together, these initiatives position CWU's commercialization center as the engine for diversification, living-wage job creation, real-estate activation, 1. Workforce Development visitor spending, stronger tax revenues, and a robust innovation ecosystem in • Entrepreneurship workshops, maker spaces, and certificate programs. Ellensburg. • Paid internships and project-based learning with tenant startups. • Upskilling courses. Number of new patents/startups per year in County • Industry/Field areas of new patents/startups in the year in County 2. Leasing and Sales of Commercial Properties Graduate retention and placement in local firms • Locate the center in a vacant downtown building to anchor revitalization. • Firm survival rate after three years • Match graduating startups with larger local spaces. • Number of firms graduating from Old Heat to Bowers Field • Run real-estate open houses. • Participation in Small Business Innovation Research/Small Business Technology Transfer or other federal innovation programs 3. Lodging Demand from Events • Host annual innovation summits. • Operate a 10-12 week summer accelerator with hotel/dorm blocks. • Target 5-10 % rise in lodging tax receipts within five years. 4. Diversification of Local Economy • Create an aerospace hub in the Central Washington region. • Focus tracks on aerospace, ag-tech, clean energy, and software. • Support value-added ventures leveraging regional agriculture. 5. Creation of Living-Wage Jobs • Prioritize STEM and advanced-manufacturing startups ($30-$45/hr). • Leverage state training grants to raise employee wages. • Aim for 250 new living-wage jobs within 10 years. 60 1 Old Heat CERB Feasibility Study 4. FULL OUTCOME METRICS (2029 AND BEYOND) • Direct, Indirect, and Induced Jobs: o By 2029: 100 direct jobs created, with IMPLAN modeling showing an additional 80 indirect and induced jobs. QUANTIFIABLE MEASURES OF SUCCESS o By 2032: 250 direct jobs, generating an estimated 500+ total jobs across the region. The Old Heat project will track progress in a staged manner: (1) pre-construction Wage Effects: groundwork and ecosystem development(2025-2026), (2) facility launch o Direct jobs averaging 20-25% above county median wage. and initial programming (2027-2028), and (3)full operations and measurable o Indirect and induced jobs supporting service, supplier, and knowledge outcomes (2029 and beyond). The following metrics will demonstrate measurable industries. progress each year toward the ultimate outcomes of job creation, technology Business Mix: diffusion, and regional competitiveness. o Tenant or externally transitioned firms operating by 2029, at least half in accelerative sectors. 1. ECOSYSTEM AND PRE-CONSTRUCTION METRICS (2026-2027) o 50 regional firms engaged in technology diffusion workshops or • Workshops and Events: four to six annual workshops led by CWU faculty technical assistance by 2030. and partners to prepare regional firms for participation in Old Heat Events and Training: programming. o Twelve CWU-led workshops or seminars annually. • Industry Engagement:At least two regional conferences co-hosted with o Six industry-sponsored conferences annually. Yakima County agriculture, King County aerospace, or Wenatchee tech o Three community conferences per year. sector partners. • Community Linkages: Two community-facing forums per year introducing Old Heat's role in regional economic development. 2. FACILITY OPERATIONS METRICS (2027-2028) • Tech Diffusion:ACTT: Launch and implementation of the Advanced Competitive 3. TECHNOLOGY INSTITUTE AND ITS OUTREACH TO LOCAL BUSINESSES. • Tenant Growth: 30% of space filled by Q4 2027; 60% by end of 2028. • Conferences and Industry Collaborations: Four industry-led conferences annually in collaboration with CWU initiatives. • Student Engagement: 25 students per year engaged in internships, applied projects, or workforce bootcamps. Old Heat CERB Feasibility Study 161 DATA TO BE COLLECTED `F Old Heat will become a facility on the edge of the CWU campus for business and universityto collaborate on technology initiatives. It will have adequate parking, gY q p g, * and the building will provide much-needed event and conference space in the * city of Ellensburg. To track progress against these measures, Old Heat will collect data in the following categories: - ��: Facility Operations Data: Occupancy rates, number of businesses engaged with technology diffusion, tenant industry classification. { Programmatic Data: Number of CWU-led workshops, industry conferences, and community events. • Workforce and Student Engagement Data: Number of students engaged annually; employment outcomes for student participants. — Economic Impact Data: Direct, indirect, and induced job creation; wage levels compared to county medians; industry sectoral breakdown from - IMPLAN. Regional Linkages Data: Number of cross-regional contracts, partnerships, or supply-chain engagements with Yakima, King County, �� Jv and Wenatchee clusters. 621 Old Heat CERB Feasibility Study DATA COLLECTION PROCEDURES TIMING: • Annual Collection: Data on workshops, conferences, student engagement, and tenant occupancy will be collected each program year beginning in 2025. • Biannual Updates: IMPLAN wage and job effect modeling will be updated every two years to track cumulative economic impact. • Milestone Reviews: Pre-construction activities (2025-2026), facility launch (2027-2028), and early operation (2029-2032)will each conclude with milestone reviews. RESPONSIBILITY: • CWU IDEA Central will collect programmatic data (workshops, conferences, student engagement) and manage reporting. • Tenant Businesses will provide annual reports on employment, wages, and industry activities. • IDEA Central will conduct biannual economic modeling of job creation and wage effects. �r, Community Partners and Industry Collaborators will provide data on cross-regional contracts and supply-chain linkages. "•"' wr r Ono r�r Won RR K y MR WIN! wir.r.go Mr M=rMol r...r Sir No rim Old Heat CERB Feasibility Study 163 • projects an average compensation premium of 20-25% above the county median wage for the new jobs created by Old Heat. AGGREGATE MEDIAN WAGE ESTIMATE THE ESTIMATED MEDIAN HOURLY WAGE OF THE JOBS CREATED WHEN DEVELOPMENT OCCURS. Given the mix of targeted industries, the blended median wage of jobs created through Old Heat development is conservatively estimated at$40—$45 per hour The Old Heat project is intentionally designed to generate high-wage ($83,200—$93,600 annually). employment aligned with Washington State's advanced industry clusters, rather than reinforcing the county's existing dependence on low-wage service sectors. This range accounts for: The targeted sectors include aerospace and precision component manufacturing, 0 Higher-end wages in aerospace, embedded systems, and advanced R&D. agricultural technology, advanced materials, clean technology, and embedded 0 Mid-range wages in agricultural technology and clean-tech manufacturing. systems industries. Each demonstrates compensation levels well above Kittitas 0 Secondary effects from induced jobs in professional and technical County's current median wage of$69,928 per year(=$33.62/hour). services. BENCHMARK COMPARISONS IMPLICATIONS FOR REGIONAL COMPETITIVENESS Using IMPLAN modeling and industry wage data (NAICS 3364 series for This wage level represents a 20-35% premium over Kittitas County's current aerospace, NAICS 333111 for agricultural machinery, and comparable clean-tech median hourly wage and positions Old Heat as a structural intervention into the and instrumentation subsectors), the following median annual compensation county's wage trajectory. By embedding these industries into the local economy, figures are representative: Old Heat directly addresses the living-wage deficit identified earlier in this report, • Aerospace product& parts manufacturing (NAICS 3364): -y$92,000/year ensuring that new job creation translates into sustainable household prosperity (=$44.23/hour) and a stronger tax base. • Agricultural machinery manufacturing (NAICS 333111): —$76,000/year (=$36.54/hour) • Advanced materials & clean-tech manufacturing: -y$80,000—$85,000/year (=$38.46—$40.87/hour) • Embedded systems/software for industrial applications: —$95,000— $100,000/year($45.67—$48.08/hour) These estimates reflect direct employment in the sectors Old Heat is designed to host or catalyze. Indirect and induced employment (e.g., professional services, supply chain, and local spending impacts)will average slightly lower but remain significantly above Kittitas County's current wage base. IMPLAN modeling 64 1 Old Heat CERB Feasibility Study SOURCES Washington State Employment Security Department(median and hourly wages) SOURCES and the U.S. Census Bureau's Local Employment Dynamics program. These data allowed comparison of Kittitas County to Yakima County, King County, and the state overall. The analysis focused on median wage levels, educational attainment, and industry employment structure. REFERENCES AND METHODOLOGY SECTION C: TARGETED INDUSTRIES • 2020 Decennial Census: United States Census Bureau Industries were selected based on three criteria: • US Census"Profiles" 2023 Washington: https://data.census.gov/profile/ 1. Wage and Skill Intensity—industries with compensation significantly Washington?g=040XX000S53 • US Census"Profiles" 2023 King County: https://data.census.gov/profile/ above Kittitas County's median wage; King—County, Wash ington?g=050XX000S53033 2. Alignment with State and National Clusters—sectors such as US Census"Profiles" 2023 Kittitas County: https://data.census.gov/profile/ aerospace, ag-tech, and advanced materials where Washington already • Kittitas_County,_Washington?g=050XX000S53037 has comparative advantages; and 3 US Census"Profiles" 2023Yakima County: https://data.census.gov/profile/ . Compatibility with CWU and Local Capabilities—fit with university • Yakima_County,_Washington?g=050XX000S53077 STEM programs, applied research, and nearby supply chain assets. • CWU BCS Regional Contribution Continuum (2025): https://www.cwu.edu/about/offices/business-community-services/bcs-regional-contribution- Industry data were drawn from the U.S. Census Annual Survey of Manufactures and BEAlnput-output tables. NAICS codes used included 336412 (Aircraft continuum-white-paper-1.O.pdf Engine and Engine Parts), 336413 (Other Aircraft Parts and Auxiliary Equipment), U.S. Bureau of Economic Analysis: Retrieved 7/23/2025: and 333111 (Agricultural Machinery). Import penetration ratios and supply chain https://apps.bea.gov/ gaps were identified by comparing U.S. shipment values with import values, highlighting opportunities for reshoring and regional capture. This feasibility study integrates multiple levels of economic analysis to determine SECTION H: DIVERSIFICATION AND ECONOMIC IMPACT the appropriateness of Old Heat as a commercialization hub for Central Economic concentration and diversification were measured using two standard Washington. The methods below explain how data were gathered, which indexes: the Normalized Shannon—Weaver Index (to capture breadth of industries were selected, and how results were calculated for each section of the industries) and the Herfindahl—Hirschman Index(HHI, to capture employment study. concentration). County-level employment data were sourced from Washington INTRODUCTION "OLD HEAT COMMERCIALIZATION CENTER" State ESD and the U.S. Census. To model industry-level economic impacts, Industries were grouped using the CWU BCS's (2025) Regional Contribution IMPLAN input-output modeling software was applied to simulate the direct, Continuum (RCC)framework, which classifies firms as Extractive, Retentive, indirect, and induced effects of introducing new aerospace and agricultural Additive, or Accelerative depending on their net contribution to long-term regional machinery activities into Kittitas County. This produced estimates of employment prosperity. This provided the foundation for identifying structural gaps in Kittitas multipliers, output per worker, and secondary spending effects. County's economy. SECTION N: WAGE ESTIMATION Section A:A product market analysis linked to economic development Wage levels for targeted industries were calculated using a combination To assess regional economic position, we compiled and compared data from the of IMPLAN industry tables and Bureau of Labor Statistics Occupational 66 1 Old Heat CERB Feasibility Study Employment and Wage Statistics (DEWS). Median annual compensation was SUPPORT FROM COLLABORATOR converted to hourly wages for comparability. For blended estimates of Old Heat's CARA MCNAB WITH RPC impact, we weighted sectoral medians (e.g., aerospace, agricultural machinery, CONSULTING: advanced materials, embedded systems)to arrive at a conservative aggregate wage band. These figures were compared against Kittitas County's current median to demonstrate the wage premium potential of Old Heat tenants. Images from CWU Website and Facebook mmm RANCH PART( CONSULTING First 3 Images from Katie Cherrier Content from Collaborators: Ranch Park Consulting is a national consulting firm specializing in Kittitas County Public Works economic development, agricultural Josh Fredrickson, Director law, and direct marketing guidance. Central Washington University We help communities and producers Business and Community Services (BCS) navigate policy, strengthen local Rob Ogburn,Associate Vice President, Federal Relations/ Executive economies, and activate opportunities Director, BCS on the ground. Bill Provaznik, PhD., Director Kittitas County Chamber of Commerce Amy McGuffin,CEO/President and Kittitas County Content from pdf: Old Heat-Study-1 025-RD3 Supporting Images from Loopnet, Zillow and Google for Alternate Site Images Old Heat CERB Feasibility Study 167 i -'f _� IN,