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Home My WebLink AboutResolutiontoApprovePFAgmtEBDA2019KITTITAS COUNTY DEPARTMENT OF PUBLIC WORKS AGENDA DATE: ACTION REQUESTED: AGENDA STAFF REPORT January 15, 2019 Request to Approve a Resolution for the 2019 Distressed County Sales and Use Tax Infrastructure Improvement Program Agreement with Ellensburg Business Development Authority BACKGROUND: Kittitas County Conference of Governments (COG) met on September 19, 2018 to review the 2019 submitted applications. COG recommended awarding $40,000 to Ellensburg Business Development Authority. This Agreement is the final step in the award process. INTERACTION: Public Works; Ellensburg Business Development Authority RECOMMENDATION: Approve & Sign the Resolution and the 2019 Distressed County Sales and Use Tax Infrastructure Improvement Program Agreement. HANDLING: Return one (1) original to Public Works ATTACHMENTS: Resolution, 2019 Distressed County Sales and Use Tax Infrastructure Improvement Program Agreement LEAD STAFF: Mark Cook Director of Public Works BOARD OF COUNTY COMMISSIONERS COUNTY OF KITTITAS STATE OF WASHINGTON RESOLUTION NO: 2019 - RESOLUTION TO APPROVE THE 2019 DISTRESSED COUNTY SALES AND USE TAX INFRASTRUCTURE IMPROVEMENT PROGRAM AGREEMENT WITH ELLENSBURG BUSINESS DEVELOPMENT AUTHORITY WHEREAS: The 1999 Legislature did pass RCW 82.14.370 Sales and Use Tax for Public Facilities in rural counties; and WHEREAS: These funds are for the purpose of financing Public Facilities which are defined as bridges, roads, domestic and industrial water facilities, sanitary sewer facilities, earth stabilization, storm sewer facilities, railroad, electricity, natural gas, buildings, structures, telecommunications infrastructure, transportation infrastructure or commercial infrastructure and port facilities in the State of Washington; and WHEREAS: The 2019 Distressed County Sales and Use Tax Infrastructure Improvement Program Agreement with the Ellensburg Business Development Authority has been executed by said entity with funding available January 1, 2019; and NOW, THEREFORE BE IT RESOLVED: The Kittitas County Board of County Commissioners hereby approves the attached 2019 Distressed County Sales and Use Tax Infrastructure Improvement Program Agreement with Ellensburg Business Development Authority. ADOPTED this 15th day January, 2019. Attest: ❑ Clerk of the Board- Julie Kjorsvik BOARD OF COUNTY COMMISSIONERS KITTITAS COUNTY, WASHINGTON Cory Wright, Chairman Brett Wachsmith, Vice -Chairman ❑ Deputy Clerk of the Board- Mandy Buchholz Laura Osiadacz, Commissioner 2019 DISTRESSED COUNTY SALES AND USE TAX INFRASTRUCTURE IMPROVEMENT PROGRAM AGREEMENT BETWEEN KITTITAS COUNTY AND ELLENSBURG BUSINESS DEVELOPMENT AUTHORITY This Contract, dated , 201 is made and entered into by and between KITTITAS COUNTY ("County'), a subdivision of the State of Washington, and ELLENSBURG BUSINESS DEVELOPMENT AUTHORITY ("Funding Recipient"). WHEREAS, the purpose of this Agreement is to provide for public facility construction and foster economic development opportunities within Kittitas County; NOW THEREFORE, in consideration of the terms and conditions contained herein, or attached and incorporated and made a part hereof, the County and the Funding Recipient mutually agree as follows: Section 1. Scope of Work. a. Funding Recipient shall provide the services and staff described in its Application for Funds submitted to the Council of Governments, attached hereto as Exhibit "A" which is attached hereto and incorporated herein by this reference. b. Except as otherwise specifically provided in this Agreement, Funding Recipient shall furnish the following as required to perform the services, described in Paragraph (a) above, in accordance with this Agreement: Personnel, labor and supervision; technical, professional and other services. All such services, property and other items furnished or required to be furnished, together with all other obligations performed, or required to be performed, by Funding Recipient under this Agreement are collectively referred to herein as "Services." Section 2. Payment. a. As full compensation for satisfactory performance of the Funding Recipient Services, the County agrees to pay Funding Recipient the sum of forty thousand dollars ($40,000). b. Additional payment terms: The County will make payment to the Funding Recipient only on a reimbursement basis, as receipts for any items including marketing and/or advertising are submitted to the County. c. Requests for reimbursements must be submitted to: Kittitas County Public Works Attn: Joyce White 411 North Ruby, — Suite 1 Ellensburg, WA 98926 ioyice.white(cD_co. kittitas.wa.us Distressed County Sales and Use Tax Infrastructure: Improvement Program Funding Agreement Page 1 d. Reporting requirements of your events will be required on prescribed forms from the Kittitas County Public Works Department. Section 3. Performance by Funding Recipient. a. Funding Recipient shall not (by contract, operation of law or otherwise) delegate or subcontract performance of any Services to any other person or entity without the prior written consent of the County. Any such delegation or subcontracting without the County's prior written consent shall be voidable at the County's option. b. Funding Recipient shall at all times be an independent Funding Recipient and not an agent or representative of the County with regard to performing the Services. Funding Recipient shall not represent that it is, or hold itself out as, an agent or representative of the County. In no event shall Funding Recipient be authorized to enter into any Agreement or undertaking for or on behalf of the County. It is understood that the Funding Recipient and the Funding Recipient's staff and employees are not employees of the County and are not, therefore, entitled to any benefits provided employees of the County. c. Funding Recipient shall comply with all applicable laws, ordinances, rules, regulations, orders, licenses, permits, and other requirements, now or hereafter in effect, of any governmental authority (including, but not limited to, such requirements as may be imposed upon the County and applicable to Services). Funding Recipient shall furnish such documents as may be required to effect or evidence such compliance. All laws, ordinances, rules, and orders required to be incorporated into agreements of this character are incorporated into this Agreement by this reference. Funding Recipient agrees to obtain all required licenses and permits, and further agrees to keep them in full force and effect during the term of this Agreement. d. The County and the Funding Recipient agree that in fulfilling the terms and conditions of this Agreement neither shall discriminate on the basis of race, creed, color, national origin, age, sex, marital status, or the presence of a physical, sensory, or mental handicap. e. The Services shall at all times be subject to inspection by and approval of the County, but the County's making (or failure or delay in making) such inspection or approval shall not relieve Funding Recipient of its responsibility to perform the Services in accord with this Agreement, notwithstanding the County's knowledge of defective or non -complying performance, or the substantiality or ease of discovering the same. Funding Recipient shall provide the County with sufficient, safe, and proper facilities and equipment for such inspection and free access to such facilities. This contract is subject to review by any Federal or State auditor. Funding Recipient shall promptly furnish the County or its designee, or such Federal or State auditor with such information related to the Services as may be requested by the applicable governmental entity. Funding Recipient shall preserve and maintain all financial records and records relating to performance of Services under this Agreement for six (6) years after contract termination. For such duration after the County makes final payment of compensation due hereunder, Funding Recipient shall provide the County access to (and the County shall have the right to examine, audit and copy, Distressed County Sales and Use Tax Infrastructure Improvement Program Funding Agreement Page 2 with or without notice) all of Funding Recipient's books, documents, papers and records related to the Services or this Agreement. g. Funding Recipient understands and acknowledges that Funding Recipient is solely responsible for its own reporting and accounting of all state, federal, social security, and local taxes, of every nature, arising from Funding Recipient's performance of this Agreement. All compensation received by the Funding Recipient will be reported to the Internal Revenue Service at the end of the calendar year in accord with the applicable IRS regulations. Section 4. Release Indemni and Hold Harmless. The County assumes no liability for the Funding Recipient's actions under this Agreement. Funding Recipient releases and shall defend, indemnify, and hold harmless the County, its officers and employees, agents, representatives, attorneys and/or volunteers, from and against all claims, costs, liabilities, damages, and expenses, (including, but not limited to, reasonable attorney fees) which arise or may arise or be alleged to arise out of or by reason of this Agreement including: • Any fault, negligence, strict liability or product liability of Funding Recipient in connection with the Services for this Agreement; • Any lien asserted upon any property of the County in connection with the Services for this Agreement; o Any failure of Funding Recipient, or of the Services, to comply with any applicable law, ordinance, rule, regulation, order, license, permit and other requirement, now or hereafter in effect, of any governmental authority; or 6 Any breach of or default under this Agreement by Funding Recipient. Section 5. Compliance with Public Records Law. a. In compliance with Washington's public records law, the County will retain copies of any documents associated with this Agreement, which may be required by law unless legally exempt from such retention, for any applicable legally required retention period. b. In the event a public records request is made to the County for documents created in relation to this Agreement, should legal uncertainty arise regarding the disclosability of any documents under federal or state public records laws, the County shall provide notice to Funding Recipient pursuant to Washington's public records act, chapter 42.56 RCW, to allow Funding Recipient to seek a court injunction. c. The County specifically shall not be liable to Funding Recipient for the County's release under public records laws of any documents not protected by trademark, copyright or other law. Distressed County Sales and Use Tax Infrastructure Improvement Program Funding • Agreement Page 3 Section 6. Industrial Insurance Waiver. With respect to performance of this Agreement and as to any claims against the County, its Additional Insureds, officers, agents and employees, the Funding Recipient expressly waives its immunity under Title 51 of the Revised Code of Washington, the Industrial Insurance Act, for injuries to Funding Recipient's employees and agrees that the obligations to indemnify, defend and hold harmless provided in this Agreement extend to any claim brought by or on behalf of any employee of the Funding Recipient. This waiver is mutually negotiated by the parties to this Agreement. Section 7. Insurance and Endorsements. a. The County may require through a request in writing that the Funding Recipient provide the County with a certificate, binder, or policy of liability insurance, acceptable to the County in an amount specified by the County. b. Such liability insurance shall be such as will protect Funding Recipient, its employees, agents and representatives, from all claims, losses, harm, costs, liabilities, damages and expenses arising out of personal injury (including death) or property damage that may result from performance of the Services or this Agreement, whether such performance is by Funding Recipient or any of its employees, agents or representatives. c. Should the County require such liability insurance, the Funding Recipient agrees to provide proof of insurance prior to commencing performance of this Agreement. d. Copies of the County's written request and the insurance documents provided by Funding Recipient shall be attached to this Agreement and by this reference will be made part hereof. e. Where insurance is requested by the County, all liability insurance policies shall be endorsed to include the County as an Additional Insured and shall stipulate that the insurance afforded by the policies shall be primary insurance, and that any insurance, self-insured retention, deductibles, or risk retention trusts maintained or participated in by the Parties shall be excess and not contributory to any other insurance maintained by the County. Funding Recipient shall furnish the County a certificate of insurance with Endorsement as evidence that the required policies are in full force and effect. Section 8. Termination. The County may, by written notice tnereot to Funding Recipient, terminate this Agreement as to all or any portion of the Services not yet performed, whether or not Funding Recipient is in breach or default. Upon receiving such notice of termination, Funding Recipient shall, except as otherwise directed by the County, immediately stop performing the Services to the extent specified in the notice. In the event the County terminates the Funding Recipient's Services, the Funding Recipient is obligated and hereby agrees to refund to the County all monies paid for Services not yet rendered by the Funding Recipient, if any, as of the date of the notice of termination. Distressed County Sales and Use Tax Infrastructure improvement Program Funding Agreement . Page 4 Section 9, Miscellaneous. a. Funding Recipient shall not (by contract, operation of law or otherwise) assign this Agreement or any right or interest in this Agreement without the County's prior written consent. b. This Agreement embodies the entire Agreement between the County and Funding Recipient, and supersedes any and all prior oral or written communications, proposals, conditions, promises, representations, or understandings regarding the Services. No change, amendment or modification of any provision of this Agreement shall be valid unless set forth in a written amendment to the Agreement signed by both parties. c. Notice for any purpose under this Agreement, except service of process, shall be given by the Funding Recipient to the Kittitas County Commissioners and the Kittitas County Public Works Director, 411 North Ruby, Suite 1, Ellensburg, WA 98926. For all purposes under this Agreement, any notice by the County to the Funding Recipient shall be given to the Funding Recipient's address provided on the signature page. Notice may be given by delivery or by depositing in the U.S. Mail, first class, postage prepaid, certified mail, return receipt requested. d. The section and paragraph headings of this Agreement are for reference convenience only and are not intended to restrict, affect or be of any weight in interpreting or construing the provisions of such sections or paragraphs. e. This Agreement may be executed in one or more counterparts and by facsimile, each of which will be deemed an original, but all of which together will constitute one and the same instrument. Funding Recipient warrants to the County that the individual signing on Funding Recipient's behalf has the requisite power and authority to enter into and to perform Funding Recipient's obligations under this Agreement. Funding Recipient further warrants to the County that Funding Recipient has made no misrepresentation or misleading statement in connection with this Agreement, and is not in violation of any applicable law, ordinance, or regulation the consequence of which will or may materially affect Funding Recipient's ability to perform its obligations under this Agreement. g. If any term or condition of this Agreement or the application thereof to any person(s) or circumstances is held invalid, such invalidity shall not affect the other terms, conditions or applications which can be given effect without the invalid term, condition or application. To this end, the terms and conditions of this Agreement are declared severable. h. The exclusive venue for any action brought to enforce this Agreement or any of its terms shall be in Kittitas County, State of Washington. Distressed County Sales and Use Tax Infrastructure Improvement Program Funding Agreement Page 5 KITTITAS COUNTY BOARD OF COUNTY COMMISSIONERS Vice- Chair ommissioner Dated: ATTEST: Clerk of the Board APPROVED AS TO FORM: Deputy Prosecuting Attorney ELLENSBURG BUSINESS DEVELOPMENT AUTHORITY 4RePse!athve �V� bdJ `t'w tv: rro� Address 'A 74 2- � Telephone 4Dated:,7Z r _ Distressed County Sales and Use Tax Infrastructure Improvement Program FundingAgreement Page 6 Kittitas County Department of Public Works DISTRESSED COUNTY SALES AND USE TAX APPLICATION FOR ECONOMIC DEVELOPMENT OFFICE PERSONNEL The Distressed County Sales and Use Tax supports improvements to infrastructure systems that foster economic development in Kittitas County as well as providing Funding for personnel In economic development offices. The goal is to create economic opportunity through local Investment. APPLICANT INFORMATION Applicant: Ellensburg Business Development Authority Contact Name: Carolyn Honeycutt Address: 501 N Anderson Street Address: City: Ellensburg Ellensburg Ellensburg Telephone: 509-962-7146 509-962- 509-962-7146 7146 E-mail Address: boneycuttcoci.ellens'burg.waus - Office Location: 119 W b', Ellensburg, WA Jurisdiction Population: 19 000 Suite 101 ' Funds Request: $60,000 APPLICATION THRESHOLDS Applicant Requirement: Check-0if: X I. The request Is to provide funding for personnel in an economic development race in Mites County. X 2. Distressed County funds are not being substituted for other funds that are already secured. x S. Applicant has submitted only one application this round. X 4. The localtregional economic development organbation has been informed of this request. Proposed Budget: Funding Sources Distressed County Funds Request: *Other Funding Sources: Federal {list sources): State (list sources): Local Government (list sources): City of Ellensburg Other (list sources):_ Project Total: "Distressed County Fund Matching Ratio: Amounts $60,000 Funding Secured? no yes 1 no yes 1 no $57,000 yes $117,000 51% yes / no *Note: You must include documentation for all otherf ending sources listed (i. e. grant requests, award letter notifications, legislative resolutions, etc.). "Note: Your Distressed County Fund matching ratio must beat least or greater than 10% in order to grab for funding consideration. The COG will not consider any requests which do not provide at least 10% matching funds from a local source, PROJECT NARRATIVE 1. Requast Descriptlon: Please describe the work this position will perform. Include a job descdptfon and any other perinent information. The Executive Director is a City of Ellensburg employee who reports to the Community Development Director. The tllensburg Business Development Authority (EBDA) Board of Directors provides direction for the Executive Director, This position creates and implements Economic Development strategies, manages the Business Incubator and fight industrial Buildings, meets with prospects to create new employment opportunities and connect them with available spaces and resources, promotes one of two designated state Opportunity Zones, and provides outreach to existing businesses on needs for development and expansion. A full job description is included. 2. Is this a new position for your organization? 111`80, pisses describe why this position is needed. ff not, why is It a necessary for this fund to continue to support this posltlon? In the summer 2417, the City of Ellensburg moved the Ellensburg Business Development Authority (EBDA) In- house to be managed and administered by City Staff. The EBDA Is the Public Development Authority for Ellensburg under RCW 35.21.730 and functions as the economic development organization for the community. An interim director oversaw the move of the EBDA into the City, providing guidance for financials, legal documents, property management, and economic development roles. In February 2018, a permanent half-time Executive Director was hired to provide leadership for Board development, property management, and Strategic Planning and Implementation to incorporating new strategies for business growth and recruitment for the community. According to a 2016 report by the Employment Security Department, 39% of Kitdtas County jobs are with state and local government agencies. Nearly four out of every ton dollars of wage income generated in IGttitas County was earned by people working in state or local government organizations. Quarterly census of Employment and Wage Data from 2018 states that service and retail Lade jobs account for 30.2% of Kittitas County employment, the majority of these jobs being minimum wage. According to the 2414 WdtrEas County Population Projection Review and Analysis, 56% of Kitttitas County residents work outside of iCttft County, with 1896 of those commuting or telecommuting to King County. Than statistics do not serves as a long-term sustainable path for the future. While the EBDA has been established in Ellensburg for many years, the move into the City created an opportunity for new strategies and focus. For economic development to happen In Ellensburg, there needs to be developed resources and incentives, new marketing strategies and outreach, and strategies for implementation. One of the most challenging elements of economic development is that there are no comprehensive resources or websites to connect prospects with available facilities and buildable land. There is no inventory of whist is available to lease, and no real assessment of what the needs are for prospective employers. This is a top priority of the new EBDA board. The board has also prioritized the need to have a better web presence and marketing materials that not only entice employers, but offer opportunities to make Ellensburg and Mites County their new home. In only the first 4 months, these priorities and documents are being developed and implemented, as shown in the attached workplan. 3. Will your organization be capable of supporting this position in the future without support from this fund? Please describe your plan and include target dates for implamentntlon and completion. If no pian is currently in place and/or no pians are being made, please explain why. AS discussed previously, this entity is being retooled after its move into the City. Plans are being developed towards self-sufficiency, but no details are available at this time. 4. Will this poeltion serve the needs and/or Interrsts of multiple jurisdictions and/or organizations? Please explain In detall. The judsdicilon fbr the EBDA is specifically designated to be the City of Ellensburg and the UGA. It is important to point out that strong economic development strategies for Ellensburg will affect the entire county, offering new and better jobs for its residents. The new EBDA Executive Director meets and works with the Business Development Director for the Chamber of Commence, Laura Bobovskl, to ensure continued collaboratlon and sharing of information and resources. When meeting with a prospect, the two entities will work together to ensure their experience is strong and comprehensive, while keeping in mind that prrospects may find a better fit in another community within IGttitas County. Having a strong economic development organization is beneficial to Eilensburg, the Chamber and Mtas County. & What goals and dellvenebles have you est for this position? Haw will you measure success? ' GOALS STEPS 1 MEASUREMENTSIOUTCOMES Bring EBDA into the City and • Complete — EBDA Is now a fully functioning Public establish financials and Development Authority within the City of Ellensburg, governance with all applicable bylaws, rules, financials, and governance updated, maintaining its arms- length approach from local government as prescribed in RCW 35.21.730 Review and update mission, *Complete: vision, and core principals • MISSION; The mission of the Ellensburg Business Development Authority (EBDA) is to stnafegicaliy recruit and support businesses, and connect them to resources so they can start, grow, and prosper. • VISION: The EBDA has an active role to ensure Ellensburg has a vibrant and prosperous local economy that values its history and natural beauty. e CORE PRINCIPLES: - Build and sustain mutually beneficial partnerships - Anticipate business opportunities and development - Enhance living standards and economic vitality in Ellensburg Use creativity and innovation to accomplish our work - Be accountable, professional, and transparent Hire competent staff as city . Complete: Half-time salaried staff hired Feb 2018 employiw Apply with the Chamber of . Ellensburg was awarded two Opportunity Zones by Commerce for Opportunity Zone the Department of Commerce status Recruit board members to bring a Complete: Recruited 3 new board members, to bring value to EBDA and its strategies it to tit full members, Included: CWU Management Prohnsor with the Institute of Innovation & Entrepreneurship, local business Director of Marketing and Strategies, Project Management Expert Understand current business . Analyze business climate of 1400 existing climate and needs businesses. Meet with representatives of sectors and gain understanding as to their current local and Industry needs Engage existing businesses • Established assistance programs with avallable resources at our fingertips to conned to businesses • Offer workshops and opportunities for advancement to address needs Establish EBDA as a ago -to, . Updated and valuable website and materials that organization advance Ellensburg and l(Ittitas County as a great lace to establish and conduct business Create great working partnerships . Begin meeting regularly with Chamber of Commence within the City, Chamber, County, Business Development Office and State . Quarterly meetings with County Commissioners • BI -Annual updates and input from City County e Waft with Chamber and County on outreach to other Cities in the County to ensure strong relationships on Environment of Learning I . Join IEDC and attend workshops (Director scheduled I to attend Northwest Economic Development Conference in August) + Advance Direc#oes understanding of planning and land use • Arrange 2-3 learning opportunities per year for Board 6. Indicate If the proposed position Is consistent with the following applicable state, regional and local plana and priorities for economic development Please Include the pertinent sections of the respoctfive plan(*) as Justification. Please explain In detail how this position is compatible with the plan(s): X Overall Economic Development Plan — Officially Adopted — and track record of working ether Identify and Address Key Areas of • Creation of a 2-3 page document that outlines: New Business Concerns o Available Workforce and Workforce Skills Technology Infrastructure jo o Transportation Infrastructure o Higher Education Resources E o Quality of Life o Community/Government Incentives o Local Tax Structure o Land/Building Prices and Supply o Utilities (cost, supply, renewables) o Ease of Permitting and Regulatory Process Identify key Industries compatible • Criteria identified and analysis of 2-3 Industries with the community and county Create effective strategies for new • New strategies and new name for the organization business recruitment that puts meaning to what it does (most don't know ' the tem? EBDA) • New website that includes available buildings and Industry — looking at Zoom Prospector through GIS Planning who does Choose Washington site, This 1 could eventually go county-pride with partnership from the Chamber • Printed marketing materials to respond to inquiries • Direct "pitch" created for prospects —we go seek them rather than belno Passive Work with Community • Gather Information on studies completed and Development to develop an information available understanding of land use and . Identify informational gaps zoning to work towards identifying + Identify opportunities for land use for economic key available areas for i development purposes develo ent Fiscally responsible organization • Identification of new funding opportunities and re- with strategies for growth evaluation of existing properties and expenses. EBDA grows staff and becomes self-sustaining with established rewards system in Place for new 'obs Develop and market Opportunity • First draft completed with input from Chamber, CWU, Zones and Commerce. • Document to be completed with all questions from Commerce addressed + Incorporated into website and print materials and ready for advancement of program py state . Continue to foilowAmett Muidrow strategic plan with Continue to advance the work of The Downtowners New town center project designed and implemented to create a year-round usable facility for on Environment of Learning I . Join IEDC and attend workshops (Director scheduled I to attend Northwest Economic Development Conference in August) + Advance Direc#oes understanding of planning and land use • Arrange 2-3 learning opportunities per year for Board 6. Indicate If the proposed position Is consistent with the following applicable state, regional and local plana and priorities for economic development Please Include the pertinent sections of the respoctfive plan(*) as Justification. Please explain In detail how this position is compatible with the plan(s): X Overall Economic Development Plan — Officially Adopted — City Comprehensive Plan, adopted Dec 2017 EBDA Strategic Plan — still in Draft • 2009 TP Study These documents are all being utilized as guidance for the workplan strategies and goal implementation of the EDEA X Community Action Plan (or other community-based plan) — Officially Adapted City Comprehensive Plan, adopted Doc 2017 • Arnett Muldrow Downtown Strategic Plan — February 2010 These documents are all being utilized as guidance for the workplan strategies and goal Implementation of the EDBA The Amett Muldrow streiegies are being utilized as guidance for the Downtowners subcommittee. ❑ other 7. How will this position meet the economic development goeb of the County and region? Utilizing information found in the Kittitas County Comprehensive Plan (December 2016), the City of Ellensburg Comprehensive Plan (December 2017), as well as the TIP Strategies from 2009, the EBDA will be focusing on the following elements in the next 18 months: Analyzing and gathering data on existing businesses In order to support and retain and assist in their success and potential expansion Develop marketing strategies to recruit new businesses and industries to maintain a strong and diverse Jobs and wage base o New website to include current business climate, quality of life, demographics, and searchable database of available land and buildings o Social media strategies o Professional print materials Highlight and preserve the unique historic and rural attributes of Ellensburg and Kittttas County Work closely with WorkSource, SBA, and Central Washington University to develop and pronate educational and workforce opportunities to new and existing businesses. Expand relationship with other regional training institutions on potential partnerships Collaborate with the 16ttttas County Chamber of Commerce, Ellensburg Downtown Association, City of Ellensburg Departments and Commissions, and Kittitas County on strategy development and Implementation along with offering our assistance on projects that forward economic development in Kdits County. Work with the City and County offices of Community Development Office to address future zoning needs These strategies will help to achieve the following goals found within the Kittitas County Comprehensive Plan, specifically Chapter 10 on Economic Development 10.3. Goals, Policies and Objectives Kittites County has established the following goals and policies to guide future economic development. These goals and policies were developed in response to existing economic conditions identified within the County. GPO 10.1 Be a county the supports the varied needs and demands of the community and surrounding area through the understanding and creation of a supportive and active environment for economic development in the community. GPO 10.2 Support the retention and expansion of existing local businesses/industries and recruitment of new businessrndustries in order to maintain a strong Job and wage base. GPO 10.8 Implement regulations that recognize and further the diversity of industry and the business community, while also promoting the sustainability of natural resource based activities. GPO 10.4 Encourage economic growth while protecting the rural character of the County. GRD 10.6 Provide the infrastructure and public facilities to support economic activity and growth. GPO 10.8 Promote and encourage the establishment and expansion of educational, research and other related activities that support existing local industries and businesses. 10 In addition to, the strategies of the EBDA will help to satisfy the following goals and policies found within Ellensburg's Comprehensive Plan chapter on Economic Development Goal ED -f: Strengthen city partnerships and resources to support economic opportunities. Policy A Continue to implement and regularly update a strategic economic development plan with representatives from the following sectors; Industrial, transportation, agriculture, tourism, healthcarc, and education. Policy B Integrate economic strategies into community planning activities. Goal ED -2- Stimulate and drverslfy Ellensburg's economy. Palley A Encourage growth that will provide goods and services to the local and regional community. Policy B Promote the retention and expansion of existing businesses as well as the development of new businesses. Policy D Encourage development of light Industrial uses within the City of Ellensburg. Goal ED -3 Grow and sustain a qualified waerkforce. Policy A Coordinate with local high schools, higher education institutions, workforce development, vocational rehabilitation, and local businesses to train a workforce that is prepared for emerging job markets. Goal ED -4 Emphasize economic development of downtown as an economic, toumt mta#, art and culturaf, and event destrnafion. Policy B Partner with local organizations to implement the downtown economic development plan. S. Describe any research your organization has conducted which shows the need for this position. Please include the data upon which your cialme are based for our review. In 2009, the TIP strategies was created for Kittitas County, many of these strategies are being incorporated into the new EBDA strategic planning for economic development. Both Kittitas County and the City of Ellensburg conducted research and public outreach opportunities that led to the development of the goals, policies and strategies within their Comprehensive Plane that address Economic Development and the need to position our county to recruit and retain non-government jobs for our workforce. As stated previously, the current employment situation in i Ittilas Country is not a sustainable path for a successful future. Submit the original application to: Kittitas County Department of Public Works 411 N. Ruby, Suite #1 Ellensburg, WA 98926 11 Applicant Certification Certification is hereby given that the information provided is accurate and the applicable attachments are complete and included as part of the application package. I certify that application thresholds are met at the time of application. T Sponsoring Agency (If Applicable) Signature of Agency Representative Typed or Printed Name rl 115 1 Date Date Date Associate Economic Development Organization Notification The organization listed below has received notification of this application as demonstrated by the signature of the organization's representative. Signature of of Comrnerce 6W - 0 5?plle .� Date Mttifns County Department of Public Works Receipt of Application Signature of Rittitas County DPW representative Typed or Painted Name Date 12 KITTITAS COUNTY DEPARTMENT OF PUBLIC WORKS DISTRESSED COUNTY INFRASTRUCTURE IMPROVEMENT PROGRAM APPLICATION DUE DATES FY 2019 Distressed County Sales and Use Tax, Application for Economic Development Office Personnel: APplicants are invited to appear at the COG meeting when the project's criteria is reviewed. APPLICATIONS DUE 2019 A lication due Date COG MEETING DATES July 13,2018 ..........................................................August 2,018 COG Meeting "Funding available January 1, 2019 13 CITY OF ELLENSBURG CITY MANAGER'S OFFICE ECOMOMIC DEVELOPMENT MANAGER REPORTS TO: CITY MANAGER MORON: Provide professional staff support to the Ellensburg Business Development Authority, and City Council as it pertains to economic development in Ellensburg. Connect businesses with the resources to start, grow, and prosper in Ellensburg. SUMMARY: Under general supervision of the Community Development Director, the Economic Development Manager supports the efforts of the Ellensburg Business Development Authority (EBDA) and the economic strategy of City Council. This work may include developing, negotiating, and implementing economic development and redevelopment Plans, programs, and services. Duties and responsibilities include planning, developing and recommending business development strategies, anticipating and identifying opportunities to stimulate and lead to recruitment of businesses, attracting, retaining and expanding business in the Ellensburg Community. Serve as the primary contact for the City for business inquiries, and coordinate with the EBDA to provide timely response. ESSENTIAL DUTIES AND RESPONSIBILITIES: All the following are to be performed while adhering to City of EIlensburg operational policies, safety nde% and procedures. This position requites regular and consigmt attendance to accomplish the following essential functions: Plan, develop, organize, manage or oversee, and evaluate economic development activities within the City. Work with real estate, finance, development, property owners and other strategic partner communities, inclnding the Kittitas County Chamber of Commerce and fire Ellensburg Downtown Association (EDA) to facilitate economic vitality for the City; resolve and respond to complaints, conflicts, concerns, and questions concerning City services, policies, procedu ms, activities and programs as they impact business development; represed or assist with representing the City in contract negotiations relating to economic development. Participate in review of site development architectural plans in conjunction with other City staff and/or consultants. Prepare, write, and administer grant applications related to economic development; participate in grant funding research and preparation of grant applications for City projects as required; serve as representative to interagency planning committees and groups. Negotiate with business owners, property managers, and others to facilitate business attraction and retention; facilitates other City services in support of development and redevelopment projects. Analyze population, land use and other data relevant to the City's economic development and redevelopment plans; prepare data and analysis, reports and recommendation for use and consideration by the Community Development Director, hearing Examiner, Planning Commission, Mayor and City Council; attend City Council and Public Hearing meetings as required. Monitor legislative developments in the area of economic development; work closely with the City Manager to develop the City's position where appropriate and respond as assigned. Prepare and manage the EBDA budget; assure financial accountability and appropriate record-keeping and mtemal controls. Prepare monthly financials and review with Board Treasurer. Oversee, manage, and market the Incubator (1000 N Prospect) and Airport Buildings (3 110 Airport) on behalf of the City of Ellensburg and EBDA. Develop and administer service contracts with professional service providers, Bconamlc DmIopment Wnagtr 11/2017 and lease agreements with tenants; under the direction of the EBDA Board, obtain legal advice from the EBDA attorney as needed. Input all EBDA vendor invoices, mail checks and file backup. Review vouchers with EBDA Treasurer and Chair. Prepare and maiVemail all tenant and microloan monthly invoices. Monitor payments and pursue legal action, with advice from the EBDA board, as needed. Prepare EBDA board packets and support materials with input from Board Chair. Post EBDA agendas and minutes to City website. Prepare EBDA minutes and email approved minutes to City Cleric. Recommend revisions to development plans, policies, and strategies under review; consult with the Community Development Director to ensure community development issues are appropriately considered; provide technical expertise and respond to questions by Council members, and members of City Boards and Commissions, as appropriate. Represent EBDA to the media on issues related to economic development; research and develop promotional strategies, develop, maintain and update new EBDA website and marketing materials, with input from EBDA Board. Develop and implement an industrial retention plan, strategic plans, and other supporting guidance plans as requested by the EBDA in consultation with the City Manager, or his or her assigned designee, and key staff. Serve on local, regional, state and national boards, committees and advisory groups that further economic development in Ellensburg. Arts Commission Adminigogyep &RM duties ff• Provide staff support to Ellensburg Arts Commission; prepare agendas, minutes, reports; provide technical and professional assistance, as needed. Complete special projects and other duties as may be assigned. This is a represntative sample—not to imply a complete listing of responsibilities and tole. SUPERVISORY RESPONSIBILITIES: This position reports to the Community DevelopmentDirector. Responsibilities must be accomplished independently within broad department and City goals and objectives, with intermittent supervision and timeline pressures. This position is subject to mandatory overtime. Supervisory duties may be assigned to this position. QUALIFICATION REQUIREMENTS; To perform this job successfully, an individual must be able to perform each essential duty satisfactorily. The requirements fisted below are representative of the knowledge, skill, and/or ability required. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. EDUCATION and/or EXPERIENCE: Bachelor's degree in urban planning, business/public administration, economics, marketing, finance, commercial real estate, or closely related field (Master's Degree preferred) plus seven years increasingly responsible experience in a local governmental redevelopment program, at least two years of which involves managing complex projects, or an equivalent combination of related education and experience; specific experience in developing and maintaining public and private partnerships preferred. LANGUAGE SKILLS: Ability to communicate clearly and concisely, both verbally and in writing using correct English grammar, spelling, punctuation, and vocabulary, ability to read, analyze, and interpret common scientific and technical journals, budgets, and legal documents; ability to respond to inquiries or complaints ifom customers, regulatory agencies, or Economic DevehVment [Mfawger 11/2017 members of the public and busiam community; ability to write speeches and articles for publication that conform to prescribed style and format; ability to effectively present information to top management; City Council, EBDA, public groups, and/or boards and commissions. MATERMATICAL SKULLS: Ability to apply concepts and calculate figures such as fractions, perccutages, ratios, int, and proportions to practical situations. NECESSARY KNOWLEDGE, MLLS AND ABILITIES: Knowledge of: • Principles and practices of economic development. • Organizational and management practices as applied to the analysis and evaluation of economic development programs, policies and operational needs. • Modern and complex principles and practices of program development and administration. • Economic analysis techniques related to market, feasibility, and impact studies. • Methods and techniques of effective technical report preparation and presentation. • Research methods and sources of information related to economic development. • Negotiation, mediation and facilitation skills, techniques and procedures. r. Applicable laws relating to growth management, SEPA, real estate and land use. + Correct English usage, grammar, spelling, punctuation and vocabulary. • Group dynamics and methods of encouraging citizen participation. Ability to: • Plan, organize, direct, and coordinate the work of professional and technical personnel; delegate authority and responsibility. • Provide administrative and professional leadership and direction for the economic development program. Identify and respond to community and City Council issues, concerns, and needs. • Develop, implement, and administer goals, objectives, and procedures for providing effective and efficient economic development services. Ensure project compliance with Federal State and local rules, laws and regulations. • Interpret and apply pertinent laws, rules and regulations. • Prepare and analyze technical and administrative reports, statements, and correspondence. • Work effectively with others to achieve personal, team, department and citywide goals. • Anticipate customer needs and give high priority to customer service and satisfaction. TOOLS AND EQuu ENT USED: Personal computer, including word processing and spreadsheet software; 10 -key calculator; phone, copy machine; fax machine. CERTMCATIONS, LICENSES, AND REGISTRATIONS: Valid Washington state driver's license and a driving record acceptable to the City's insurance carrier; First Aid /CPR certification PIMIC.A.L DEMANDS: The physical demands described here are representative of those that must be met by an employee to successfully perform the essential functions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential &actions. While performing the duties of this job, the employee is frequently required to use Wbrementionod tools and equipment. The employee is frequently required to effectively communicate and exchange accurate information with EBDA, City Council, co-workers, members ofthe public, and other groups. Communication will be done in writing, by telephone, and in person. The employee is frequently required to be in a stationary position when performing office work and must be able to move about inside the office and position self to access office equipment. E=omlc Dewlopmeat Manager 11/2017 The employee must regularly move ancUor transport up to 25 pounds. Specific vision abilities required by this job include close and distant vision, and the ability to adjust focus. WORK ENVIRONMENT: The work enviromnent characteristics described here are representative of those an employee enoounters while performing the essential fimetions of this job. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential functions. Work is performed. in an office environment with periods of potentially stressful situations and frequent interruptions. The noise level in the work environment is usually moderate. KEY RELATIONSHIPS: The key relationships described here ane representative of those an employee encounters while performing the essential functions of this job. While performing the function of this job, the employee will provide information to, collect information ftm, coordinate projects and activities and solve problems with other departments and employees, state and Federal agencies, collective bargaining committee, video, audio and print media, and the public. Contact will be made in writing, by telephone, in person, and in some cases by teaching or formal instruction. The employee will negotiate solutions within policy guidelines with banks, employees and other department& Date of Action: 11112018 Effective Date: 111/2018 APPROVAL SICiA ATURES DATE Department: City Manager Date(s) amended: Division: Department Director: FLSA Class. Exempt Human Resources Director. Union: None City Manager: NOTICE: The above job profile does not include all essential and nonessential duties of this job. All employees with disabilities are encouraged to contact the Human Resources Department to review and discuss the essential and nonessential fiuictions of the job. An employee with a disability can evaluate the job in greater detail to determine if sheltie can safely perform the essential function of this job with or without reasonable accommodation. DISCLAAMFL- Job profiles are not intended, nor should they be construed to be, an exhaustive list of all responsibilities, tasks, skills, efforts, working conditions or similar behaviors, attributes or requirements associated with a job. A job profile is not a comprehensive job description. It is intended for the sole purpose of acquainting a person who is unfamiliar with such position with a brief overview of the position's general direction and scope. This position profile is confidential, is intended for internal use only and may not be copied or reproduced by anyone for any purpose without written permission from the Director of Human Resources or the City Manager. Economic Development Manager 11/2017 i • dQ. 'O a rtm �o o a s o C CL m � C N G �p a lu IV aC r st rri CL o N ' cto SU � � d ZPoa r% a m ID M a' m Q = .� an v° 10 0 A m� G ft a a N EL w a n o � c � CL A c a v 0 o m m a 0 m n c a�o€ m o il a3 a ° .0 3.s 61 rnp &CL lwto m 3 M n 0 3 0 o a a � m a a C CCL.rh cr ' Q c C& C O C w m a G� ©m v m m a o CL m eon n a 5 �0 CSO a m _ a a a o o No CL rD 'o o o $ a q r ri a it CL 0 CL oc aQ-y0 L.m o x c o� 8�+ fin_ a S a rr FA 13 md� - oar0 SL ' c � b a e, 'a z o � CD P. 3 3 m a o 0 a 0. 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'.r.'�f rt CL",f r .' -, a '� 9 n f m 69 im or • f � r " - _.._.. _., _. �'4.k'�r ._ • �'` . _ �_ µ _F• _ 1 ..ter ._ _ _� 9 • • O D O O O m C s, o 0 o na g �F 2- Q 7 Cm b co M. = fQ Q $ 3 rt CL",f r ca cm 69 7 nQ 0� CL m It fD CL 'a d 7 C a m 0 3 0 3 -31 6BUSINESS DEVELOPMENTT AUTHORITY Competitive business position and strategic workplan report 2018 TABLE OF CONTENTS Introduction Approach Background Phase I What do businesses need? Ellensburg's competitive business position Summary Appendix: Strategic workplan actions 2018 INTRODUCTION The Ellensburg Development Business Authority (EBDA) is a public development authority as authorized by RCW. 35.21.730 and created by the City of Ellensburg in 1994 (City of Ellensburg Ordinance No. 3895). The mission of the EBDA is to strategically recruit businesses and connect them to resources so they can start, grow, and prosper. This report accomplishes Phase I of a four phase approach, described below. Phase I answers two primary questions: What Is the EBDA's competitive business position, and how will EBDA strategically leverage this position to recruit businesses to Ellensburg, and to connect businesses to resources so they can start, grow, and prosper. The EBDA formed a subcommittee In December 2017 to provide a framework by which these questions, and others, may be answered, as well as the strategy to reset EBDKs role in economic development with a future focus. The strategy and action pian is founded on data and Informmational resources available in the State of Washington. Our primary communities for benchmarking competitive factors include Bellevue, Issaquah, Wenatchee, Moses Lake and Yakima. The results of our research provide critical information leading to an understanding of: Marketable strengths that EBDA can capitalize on Deficiencies that may be cow cost-effectively Development opportunities Issues that impact Ellensburg or the region's economic development future • Obstacles to development Gaining clarity on what the EBDX1s economic development product is, and our related strengths and opportunities as well as obstacles and deficiencies will inform the work and shape the future of this organization. In addition to the development of this workplan, the EBDA recognizes the importance of the EBDA Subcommittee known as wMe Downtowners", which was established in the fall 2011 to address large projects in the downtown that were barriers to revitalization. This group Is included in the scope of the EBDA workplan for the continued growth and improvement of the historic city center of the community. APPROACH As noted above, a subcommittee of the EBDA was formed to approach future work in a strategic manner. To systematically approach this work, the subcommittee decided to take an incremental look at four phases to accomplish the work. These four phases are: Phase I This first phase includes an intensive look at the past work of the EBDA, along with an analysis of Ellensburg's strengths, weaknesses, opportunities, and threats, as they align With economic development. Phase I includes redevelopment of the mission, vision and core principals, as well as the EBDA business position. From there, a phased approach to address the findings of Phase I and the implementation of its strategies will create the roadmap for success. In addition to addressing strategies for recruitment of new business, it also recognizes that retention and growth of existing businesses must be a focal point. The work of the subcommittee in draft foram will be reviewed by the full EBDA Board. The EBDA Board, at their discretion, may wish to also provide the draft to the City Manager, and Council Representative for further input. Subcommittee members have discussed the possibility of reaching out to other entities for input, including, but not limited to, specific developers, Washington Department of Commence, Yakima Economic Development, and the like. The final report will be presented to the Ellensburg City Council upon completion and will be reviewed on an annual basis or as needed. Phase I is to be completed by March 31, 2018. Phase II Phase II begins plan implementation with defining strategies for both business retention/expansion and new business recruitment. As of January 2016, there are 1,400 registered businesses located within the city limits (200 in the downtown core). A comprehensive analysis of existing entities to determine type, current worktbrce, and location is needed so there is a data driven understanding of the existing businesses in Ellensburg. An action plan to connect with the existing businesses could include a survey, one-on-one interviews, focus groups, and/or facility tours with larger employers. The goals for collection of this information is to assess how the EBDA currently assists businesses and how it could further assist with any barriers for expansion as well as to create a place marker for developing growth goals for economic development. The Phase II Includes a strategy for new business recruitment focusing on specific people and industries that would complement Ellensburg's current business portfolio, and fit well with its business position, values and quality of life. A Ivey element of this phase includes the creation and maintenance of a robust, searchable Inventory of existing facilities, vacant or underutilized buildings, and development ready properties. A second key element is being able to articulate the position of the Ellensburg as it relates to the fiber optic netwnrk, and its relationship to economic development. Education of staff and the board on funding sources and investors is a third key element. Understanding what resources are available, and how they can be leveraged is essential to EBDA's success. Phase II is to be completed by June 30, 2018. Phase III Phase III creates strategies based on the findings of Phase II and Include specifics on how to address existing business issues as well as targeting of identified new industries and people. The Phase creates a marketing plan and materials. Marketing strategies for the inventory of buildings and properties should include an online database tied to other sources of outreach such as the Department of Commerce database and websites such as LoopNet. Connect with Choose Washingtorf to ensure that Ellensburg is on their radar as a development ready community. Phase IV This is the implementWon stage of the plan with targeted strategies for new recruitment as well as reaching out to existing businesses. BACKGROUND The Ellensburg Business Development Authority recognizes and values the histo is downtown, and the importance of the downtown core to those who live and visit Ellensburg. As such, a standing committee of the EBDA is called the Downtowners. The Downtownem The Downtowners was established as a standing sub -committee of the EBDA in 2011. The Downtowners includes members of the EBDA and others in the community who dedicate their time to getting economic development work done in the downtown core. The Downtowners facilitated and managed the purchase of the Geddis Block, an 1889 structure at the SW comer of 4th and Pearl, In January 2013. This was the catalyst project for the revitalization of the downtown and over the next several years, six new businesses opened or expanded Into the facility. The building reverted back to private ownership in the spring 2015 and The Downtowners searched for their next project. In February 2016, Arnett Muldrow & Associates completed a Downtown Market Study and Economic Development Plan for the EBDA. It included the results of a zip code survey which defined what groups were shopping in downtown during the summer 2015 as well as a retail market analysis, trade area demographics and market segmentation. The study looked at vacant/underutilized buildings and lots and Identified phases of opportunity zones. Four themes emerged from the study that now guide the future for the downtown. The ideas of Reinforcing the Center, Expanding Success, Connecting the Community, and Enhancing the Visitor Experience tell that story that downtown Ellensburg has experienced new growth and should recognize that "revitalization" is no longer the road to future success. From these themes, key projects and focus developed, which The Downt:onrners are continuing to advance. Mission, vision, core principles In the fall of 2017, the EBDA created a subcommittee bo work on reviewing their mission, vision and core principles.. After several meetings of the subcommittee and the full board, the following mission, vision, and core principles were approved by the board: MISSION: The mission -of the Ellensburg Business Development Authority (EBDA) Is to strategically recruit and support businesses, and connect them to resources so they can start, grow, and prosper. L/,1fSION: The EBDA has an active role to ensure Ellensburg has a vibrant and prosperous local economy that values its history and natural beauty. CORE PRINCIPLES, 1) Build and sustain mutually beneficial partnerships 2) Anticipate business opportunities and development 3) Enhance living standards and economic vitality in Ellensburg 4) Use creativity and'innovation to accomplish our work 5) Be accountable, professional, and transparent wm4rpo susixEssmNEED7 In order to establish Ellensburg`s competitive position, the board reviewed studies of what factors are key to attracting business to communities in the Pacific Northwest. Many academic, government, and business organizations have done this work and share conclusions about elements critical to business recruitment, growth and development. For example, the Washington State Department of Commerce has developed an initiative to encourage businesses to locate in this state. The "Choose Washington" project asserts the following as the top reasons businesses choose to locate in Washington: * Innovation • Industry/sector cluster specializations • Well educated workforce • Transportation network and broadband/lInternet • low cost energy • Trendsetters • Diverse climate, landscapes • Resilient in times of adversity • Vibrant, unparalleled quality of life • Global view, local action CNBC ranks Washington State first in the CNBC "'Best States for Businesses" poll, based on the following criteria: • Workforce (425 pts) • Infrastructure (400 pts) • Cost of Doing Business (350 pts) Economy (300 pts) Quality of Life (300 pts) • Technology and Innovation (225 pts) • Education (200 pts) • Business Friendliness (150 pts) • Access to Capital (100 pts) * Cosa of Living (50 pts) The International Economic Development Council (IEDC) is a non-profit, non-partisan membership organization serving economic developers. With mon: than 5,000 members, IEDC is the largest organization of its kind. Annually, IEDC performs a survey of primarily members to identify the state of economic development globally. The IEDC 2017 survey echoes the top two factors Impacting business site selection decisions are labor/workforce (50%) and adequate infrastructure (30%). Respondents to the 2017 survey included economic development representatives from communities with a population of less than 50,000 (over 30%). Economic development is at the crossroads of disruptive change. Amazon's bid for headquarters 2 (HQ2) has created a site selection process never before experienced. Over 230 community partnerships responded to Amazon's request for proposals. Each proposal weighed in at over 600 pages of creative ideas, data, and information about partner communities — much of it now available for public consumption. The short list of 20 has economic development professionals speculating on what it is that businesses of the 215t century are looking far. The connections to'placemaking' and site selection are unfolding as more and more communities are shifting their approach from attracting business sectors to one that seeks out those people who are good for their community. What is Me EHDA s caMPOfitive business position? The Ellensburg Business Development Authority (EBDA) has as its geographic boundary the 6.97 square mile area of the City of Ellensburg (see Figure 1). The EBDA has a seven -member governing board, a city employee who serves as a part-time Economic Development Manager, and a city employee serving as the Interim -Executive Director. As of this report, there are about 1,400 registered businesses in Ellensburg (source: Washington State Department of Revenue, November 2017). Figure 1: City of Ellensburg zoning map with commercial and industrial zones only N W E PVTP ._#. Reflecting on the criteria listed in the previous section above, and using data collected about regional competitor municipalities, the Ellensburg Busines.z-, Development Authority has conducted an analysis of this community's business position, vis-a-vis recruitment of new opportunities and sustaining the local business economy. Businesses In Ellensburg have strong community ties, which reduce the risk of leaving the area. A healthy community relies on having strong, committed businesses. Real job growth, over time, comes from local business retention and expansion. As of year-end 2017, the Washingtx)n State Department of Revenue indicates there are 11400 registered businesses In Ellensburg. Of these registered businesses, about 200 are looted in the downtown core leaving 1,200 outside the downtown core. Registered businesses may include various types such as retail or industrial as well as home businesses. Of key concern to EBDA is to ensure those businesses who are in Ellensburg can continue to prosper and grow. Business assistance is a tool EBDA can employ to retain and expand businesses Business Assistance EBDA's-Com titiye' positiondvanoe.EBDA's Position B Ellensburg's Business_ Incubator, Seek out and maintain a list of mentors for offering graduated rental structure local businesses. and light industrial space for start- up/expanding businesses. A Microloan Program for Identify and promote public and private businesses who have been resources available for businesses to sustain unsuccessful in the traditional over time. marketplace in securing funds to grow their business. Sponsoring trainings, workshops Ask and listen to what area businesses say and events such as NxLevel they need to continue growth and prosperity, Entrepreneur Course and the and offer confidential assistance. recent SBA/EBDA Small Business Fair. A key factor in determining whether or not a business will stay and possibly grow in Ellensburg is a welcoming business climate, and capacity and interest in partnering with others to ensure a more inclusive and inviting place for businesses. Partnershi s Business Climate EBaA's"Com etitiy� Poklow , . - Advance.;BBDA's. Pos ion B .. . Community interested and Identify and connect with venture capital Invested in supporting local sources. businesses. A vibrant historic downtown. Know what businesses are in Ellensburg and what their ongoing needs are. Quality of life that attracts and Link expanding businesses with public retains workers. programs designed to mitigate growing pains and regulatory issues. Regularly connect with area business organizations, e.g. Rotary, Chamber. Continue. to maintain relationships with historic preservation experts and the Ellensburg Downtown Association. Echoing a. previous statement, develop a workforce strategy that aligns economic development and workforce goals to attract people who are good for our community. This includes working closely with large employers such as Ellensburg School District, Central Washington University, as well as long-term smaller employers others. Actively seek out public -public partnerships to further investment in business expansion. Community Interest Is reflected in their investment in supporting local businesses. Attracting nm business Being a university town is evident, as Ellensburg residents have a level of education higher than average in Washington state. The student population, which swells nine months out of the year, Is about half of Ellensburg's total population. Many local residents are employed at the university which is one of the largest employers in our community. The economy of the city is closely related to the university. Business looking to place a facility Ellensburg view the strong workforce and being a university as a plus. Strona Workforce EBDX9 Com , etitive. Position Advance EBDA's Pbsid6n.py Highly educated, youthful, ready- Identify opportunities to connect intellectual to -get -the -job -done workforce. power of faculty and students to prospective business needs. A regional university with the Identity which industry certifications are capacity and desire to create valuable, and partner with CWU to customized degree or certificate develop/deliver them. programs to meet current and future workforce needs. `College town' feel with low taxes, Develop a workforce strategy that aligns good schools, intellectual and economic development and workforce goals. cultural opportunities, and an Include in the sgategy incentives for unparalleled quality of life. workforce education. Proximity to the Puget Sound Actively seek out public-private partnerships to region, Washington's major urban further investmentin business attraction. area. Address infrastructure shortcomings (e.g. broadband). For a business to site in Ellensburg the necessary infrastructure must be currently available or easy to acquire. For the purposes here, infrastructure refers to roads, rail, airport, telecommunications, transit, utilities, and any capital assets that a business might look for in its evaluation of siting a new facility. Within EBDA's area of influence, but outside its span of control, lies the rail and interstate road system, and a key potential regional economic asset, Bowers Field Airport. EBDks Competitive Position Advance EBDA's Position B Location on two major interstate Prepare and maintain a searchable database of freeways, I-82 and I-90. properties available or potentially available for lease or purchase. Be positioned to, at a moment's notice, respond to siting requests from businesses/business representatives. Infrastructure EBDA'S Comoedtive Position Advance EBDA's Position .By Single -point utilities for gas, Convene expertise in dark fiber and broadband electrics water, and sewer. For as it relates to economic development, and high-volume electrical users, explore creating a self-sustaining fiber optic single -user load rates available. model. Fiber optic network system Fully understand and utilize the capabilities of including 14 miles of fiber EBDA's Public Development Authority and infrastructure used to transmit big future any designations. data and provide wi-fi Internet delivery. Fare -free public transit system Fully undei-sWnd, keep abreast of and actively supported by voter passage of a pursue economic development tools available 2/10t' sales tax increase. such as the Opportunity Zones. Vacant land for build -to -suit, and Facilitate future focused improvement or responsive city permtWng process. enhancement opportunities for the ICGttitas County Airport (Bowers Field). Rail network with private and public spurs available. Support new construction by connecting to resources such as New Markets Tax Credit. Housing infrastructure funding approved November 2017. SUMMARY Needs to be developed F 1 x_2_4 L[!.'�1 During first quarter 2018, a sub -committee of the Ellensburg Business Development Authority (EBDA) convened to perform a review of the competitive position of the EBDA, and set strategic actions for delivery during 2018. ELLENSBURG'S ECONOMIC STRENGTHS Dation. Ellensburg is home to one of Washington State's premier comprehensive universities, Central Washington University, The AACSB accredited College of Business Is the home of the Institute of Innovation and Entrepreneurship (I4IE). Established seven years ago with a grant from the Herbert Jones Foundation, the I4IE is the intellectual hub for entrepreneurship and youth generated start-up businesses. The EBDA manages the Ellensburg Business Incubator, where business start-ups take root and grow, graduating in 3-5 years to a new Eliensburg location. Posture Recommendation One of Washington state's Public Fully understand and utilize the Development Authority's with bonding capabilities of a PDA. Seek out Public. capacity, build-to-sult options, and Private partnerships (P3) to increase experience with Public -Private opportunities for livable wage job Partnerships. creation. Target individuals who are good for our community not just business sectors. Educate EBDA, City Council about change and disruptors' happening in the economic development profession e.. H 2 . • Well cducated workforce. Ellensburg residents have a level of education higher than average in Washington state. Over half of the community has a direct affiliation with Central Washington University either as a student or employee. Posture Recommendation Over 3,000 degrees are conferred by Customize degree/certification CWU in Ellensburg each year in programs to meet new/existing Ellensburg. Graduates infrequently business needs. Build a path for stay because the job market is graduates to follow and stay In limited. Ellensburg. Identify opportunities to connect intellectual power of faculty and students to economic development in Ellensburg. Identify what industry certifications are meaningful, and partner with CWU to develop/deliver. Develop a workforce strategy that aligns economic development and workforce goals. attract people who are good for our community. Offer incentives to businesses for workforce education. • Utilities — energy, water. While not the lowest In the state due to hydro subsidization in some neighboring counties, Ellensburg continues to offer low cost electric and natural gas rates to businesses. The city owned electric and gas utility now has the flexibillty to offer large load rates customized to the needs of the business. Ellensburg's power is carbon -free. Posture Recommendation More temperate climate than Identify and make public Information Grant/Douglas/Chelan Counties means about area utilities (energy, water), less energy demand. Some of rthe - and the option for single load rates. lowest energy rates in Washington Actively promote one stop shop for state, and the authority to enter into electric, natural gas, water, Single load Rates with large electric wastewater — all managed by the City users. of Ellensburg. • Proximity to roadways,and nd regional transit nemr. Ellensburg is at the crossroads of two major interstate roads, I-90 and I-82 (and Rt 97?), where various freight companies move cargo via road, and rail. The average daily commute for employees is 16.5 minutes. Ellensburg offers a fare free transit system for all. The system is paid for by a 2/10ths percent sales tax increase that went into effect In 2016. - Posture Recommendation In the center of Washington State, Make known location of Ellensburg and 'on the way to everywhere, and ease of road transportation. movement of people and goods via Promote transit system and the road system are well connected. interconnectedness in the region. Voter support to maintain and expand public transit m. Business friendly, The average time for a business to build or renovate space is lower than most jurisdictions in Washington state. However, there are lack of incentives other communities can offer through a port district In April 2018, ICttitas County voters will decide whether or not to approve a Port District Posture Recomirnendoo6n The City's permitting process has one Itemize, describe business incentives of the fastest turnaround times in and how they work. Rebrand Washington state. Permits for simple Ellensburg as `business friendly; as projects are issued `over the counter', there is a negative past history that whereas complex projects may take 4 continues to prevail in certain to 6 weeks. Business incentives are conversations — inaccurate. found in City Code, and are part of the capacities of Ellensbu 's PDA. Resilient es of adversity. Ellensburg is known for its small town feel, exceedingly polite and neighborly residents, and diverse cultural opportunities. People pull together during adversity, as is demonstrated during wildfire season. Strangers reach out to strangers in need to help with food, shelter, financial assistance. The crime rate In Blensburg is below the state's average which contributes to the feeling of safety people experience here. Ellensburg is a strong and close knit community that_is open to newcomers and visitors alike. Posture Community capacity to gain strength from one another regardless of factors that may be divisive. Display, in marketing materials, in words and visuals how Ellensburg is the place for people to come and live. Talk about the value of `place' in lieu of short term fiscal Incentives. NOural resources. For those businesses with a high demand for quality water resources, Ellensburg has an abundance of low cost water and conveyance infrastructure throughout the city. The air here Is fresh, healthy, as is the soil on most developable lands. Postuure Recommendation Our place in rural central Washington Pmmob, in broad terms, natural affords businesses with clean, resource availability to all, and provide accessible, low cost water resources comprehensive information to a for use in business processes; fresh business whose profits depend on air for recreation and those with having clean, low cost water, compromised health conditions; and clean, vacant, available, buildable land. T. Ellensburg has some of the lowest property, sales, and lodging taxes in Washington state. As example, a comparison of property taxes in six jurisdictions (Bellevue, Issaquah, Wenatchee, Moses Lake, Yakima and Ellensburg) using Smartasset.com indicates Ellensburg (0.80) is the lowest, next lowest is Wenatchee (0.838). Posture • Recommendation The lowest property taxes, third Continue to monitor property, sales lowest sales tax (per WA DGR), and and lodging taxes, and promote second lowest lodging tax (per WA Ellensburg's position in the context of DOR) in Washington state. Washington state. Pursue tax population growth. incentives such as Market Tax Credit redring here as well as the annual and the new Ogportun!Mt Tax Zones. SOW& The current K-12 school system is being retooled to be more responsive to changing seaming methods, and a growing population. A much needed renovated middle school opened in 2017, and two new elementary schools are planned for the near future. A lack of leadership in the school district has created a void; but all are hopeful when a new superintendent is hired, the district will be back on track. Postum Recommendation Good schools, progressn►e leadership Locate nuggets of success in the K-12 meeting today's student needs, and system that would be meaningful to looking ahead do adding buildings and share with new/existing businesses. teachers to accommodate steady Build a partnership with ESD In population growth. support of workforce development, redring here as well as the annual and retainina local talent. VbraoL unparalleled-glUalilyf ' . As a business owner, locating in an area such as Ellensburg is a real drawing card for future employees. Located two hours from Seattle, three from Spokane and four from Portland, Ellensburg is on the way to everywhere. Surrounded by mountains, in close proximity to pristine wilderness areas, fishable waters, and multiple trails for hiking and bilking, Ellensburg is the place that people want to live and raise their families. Posture Recommendation We have It all: culture, arts, sports, In an unreserved manner promote recreation; whatever you are looking why businesses, and the people who for, Ellensburg has it. Ellensburg has work at them, want to be In an unparalleled quality of life; this Ellensburg. brings with it a rise in empty nesters redring here as well as the annual Pdsture .7 recommendation rise in undergraduate students selecting CWU as their leaming place. Find ways to redevelop the Ellensburg ELLENSBURG'S ECONOMIC WEAKNESSES There is a lack of recent experience with strategic economic development. As opportunities present themselves, the community attempts to respond. Ellensburg lacks a mature strategic economic development infrastructure — the people, funding, and policies that shape long-term growth and development. The recovery of Ellensburg's downtown core since the Great Recession demonstrates the will of the city officials and local business leaders to set the prioritles and do the work associated with strategic economic development. • Comprehensive transportation network. Ellensburg's strength is its position at the crossroads of two major interstate roads, I-90 and I-82. However, Ellensburg is described as a "sleeper' town in terms of rail traffic (291 railcars between December 2015 and December 2017) with limited rail sidings and few, poorly maintained shared rail spurs. The rittitas County Airport lacks regular maintenance, resulting in the closure of a runway. Posture Reoommendablon The I(Ittitas County Airport, formerly a Find ways to redevelop the Ellensburg military Installation, has been Airport, making it an economic asset neglected for decades. for our community and our region. Attract a master pian developer for aerospace and aviation. Support ongoing legislative efforts aimed at maintaining the region's existing airport infrastructure. Identify land and land use adjacent: to rail service. BroadbandUfl. The City of Ellensburg operates a Telecommunications Utility which provides low cost, reliable long haul fiber optic and intemet service to businesses in Ellensburg. Business can subscribe to a 300 mps shared service, a 1,000 mps shared service, or a custom dedicated fiber optic service for fast, secure data transfer. 14 miles fiber Infrastructure; dark Establish an EBDA sub -committee fiber available. Fiber may be used to comprised of EBDA board members transmit big data, and the city has and area experts to explore a self- sustaining model to provide fiber optic opacity to also provide wife internet service. and wifi services as a means to promote economic development. Increase understanding and impact of smart city infrastructure and the Develgpable land, available space. Even though our community is experiencing higher than average population growth, a business can stip find vacant land zoned to suit the building a new facility. An inventory of existing commercial locations for rent, lease or sale is needed, and is under development. Posture Recommendation Ellensburg lacks comprehensive, up- Prepare and maintain a searchable to -date information about available database of properties available or land and space for businesses. potentially available for lease or Property owners list their property for purchase. rent or sale on CralgsUst etc. or and pursue best options. simply post a sign while others employ the services of a real estate professional. • Lack of revenue diversity. As the economlc development entity of Ellensburg, the EBDA lacks a diversified, sustainable revenue stream so the organization can support economic development. Posture Recommendation EBDA's only revenue source is rental Talk to other Washington State Public income from the City's Incubator Development Authority's about their Building and the EBDA Airport revenue streams. Identify Building. opportunities to diversify revenues, and pursue best options. • Retail activity Ellensburg's downtown core has grown in strength and vitality since the Great Recession. Exports, including timothy hay, continue to be one of Washington's top exports by volume. However, while small retail businesses continue to do well and grow, our community stili exhibits high retail leakage. Posture Recommendation Good recovery from the Great Push the market to Ellensburg — Recession, but Ellensburg still spends without gas sales, retail leakage is millions on retail activi in la er around 20%, Identify and pursue communities like Yakima, Wenatchee opportunities to reduce retail leakage and Moses Lake, as well as the Puget and Increase local options. Attract Sound and online commerce. retail that brings area tourists and residents to Ellensburg. • . Business and community come together to makeup a mosaic of cultures and people. Tourism is important to the community's economic health. Posture Recommendation Increasingly diverse community will Intemationalize business recruitment help to draw tourism and to welcome materials; seek opportunities to new business to our community demonstrate our open door to many cultures. ELLENSBURG'S ECONOMIC THREATS • Housing. Ellensburg is experiencing a severe shortage of middle- and low-income housing. The shortage will impede Ellensburg's efforts to recruit new employers. In conjunction with the Ellensburg Comprehensive Plan Update, the city conducted a housing assessment study. This study found: 1. The cost of rental housing Is increasing (17% between 2013 and 2016); 2. Apartment vacancy rates are very low at 0.8°x6 (healthy is 5.0%); 3. Many households are cost burdened with over 1/3rd of households spending >30% on housing, and over 1/3"d spend X50%; 4. Housing inventory and household size is not well matched; 5. A silver tsunami is on the horizon; and 6. There exist unique dousing needs typical of a college town. November 2017, Ellensburg voters passed a 1/10ths percent sales tax increase for affordable housing (Proposition 1). While this is not likely to'solve'the housing problem, it has potential to ease the financial burden fbr some. Much is happening to address Ellensburg housing inventory. An Affordable Housing Advisory Committee (Ad Hoc) is meeting to make recommendations to City Council on Proposition 1. Three projects are moving from design to build, adding over 300 apartments and a 400 -bed residence hall at Promote responsiveness of community on the issue of affordable housing, and identify and share information about how Ellensburg is addressing the community`s concerns. • Piaget Sound overflow. Population in the greater Seattle area has been growing by more than 1,000 people a week since 2010. Ellensburg is now feeling the pressure of population "spill-over," a combination of increased commuters from Ellensburg to Seattle jobs, and permanent residents, seeking relief in Ellensburg from the pressures of crowded highways and communities. The pressure is evident in a very tight housing market. Ellensburg should expect spill-over in businesses choosing to relocate. This may be an opportunity or threat, depending on the nature of the business. Ellensburg should act now to prioritize Industry clusters most compatible with the future we envision for ourselves. Recommendation As a bedroom community to the Leverage community assets and strengths Puget Sound, our focus should to take charge of our future rather than be self-directed rather than allow the community to develop to meet allowing our position to be Puget Sound's needs. extemally dictated. Over 25% of Ellensburg residents are daily , commuters to the west side. ELLENSBURG'S ECONOMIC OPPORTUNITIES Looking at the aforementioned recommendations creates a list of opportunities for EBDA to pursue. ECONOMIC STRENGTHS Tp.:fc • . Raq men Innovation Fully understand and utilize the capabilities of a PDA. Seek out Public- Private partnerships (P3) W increase opportunities for livable wage job creation. Target individuals who will bring a positive impact to our community and not just business sectors. Educate EBDA, City Council about change and 'disruptors' happening in the economic development pn*ssion Ce.o. H 2 . Well educated Customize degree/certification programs to meet workforce nWftistlnq business needs. Build a path for graduates to follow and stay in Ellensburg. Identify opportunities to connect intellectua[ power of faculty and students to economic development in Ellensburg. Identify what industry certifications are meaningful, and partner with C:WU th develndpliver. Develop a workforce strategy that aligns economic development and workforce goals. Offer incentives to businesses for workforce education. Utilities — energy, Identify and make public information about area water utilities (energy, water), and the option for single load rates. Actively promote one stop shop for electric, natural gas, water, wastewater — all managed by the City of Ellensburg. Roads and transit Market central location of Ellensburg and ease of road transportation. Promote transit system and interconnectedness,in the realon. Business friendly Research, Itemize, describe business Incentives and community how they work. Rebrand Ellensburg as 'business friendly, as there Is a negative past history that continues to prevail in certain conversations — inaccurate. Resiliency Display,, In marketing. materials, In words and visuals how Ellensburg is the place for people to connect and live. - Talk about the value of "place' in lieu of fiscal incentives which are short term. Natural resources Promote, inL broad terms, natural resource availability to all, and provide comprehensive information to a business whose profits depend on having clean, low cost water. Taxes Continue to monitor property, sales and lodging taxes, and, promote Ellensburg's position in the context of Washington state. Pursue tax Incentives such as Market Tax Credit and the new Opportunitv Tax Zones. Schools Locate nuggets of success in the K-12 system that would be meaningful to share with new/existing businesses. Build a partnership with ESD in support of workforoe develo meat and retaining local talent. Quality of life In an unreserved manner promote why businesses, and the people who work at them, want to be in Ellensburg. ECONOMIC 1NAKNESSES T-6 I� 'on - Comprehensive Find ways to redevelop the Ellensburg Airport, transportation making it an economic asset for our community and network our region. Attract a master plan developer for aerospace and aviation. Support ongoing legislative efforts aimed at maintaining the region's existing airport infrastructure. Identify land and land use ad'acent to rail service. Broadband/wife Establish an EBDA sub -committee comprised of EBDA board members and area experts to explore a self-sustaining model to provide fiber optic and wifl services as a means to promote economic development. Increase understanding and impact of smart city infrastructure and the internet of thins (lot). Developable land, Prepare and maintain a searchable database of available space properties available or potentially available for lease or purchase. Revenue Talk to other Washington State Public Development diversification Autho ' s. about their revenue streams. Identify opportunities to diversify revenues, and pursue best options. Retail Push the market to Ellensburg —without gas sales, retail leakage is around 200. Identify and pursue opportunities to reduce retail leakage and increase local options. Attract. retail that brings area tourists and residents to Ellensburg. Continue Downtowners subcommittee to develop opportunities to strengthen the downtown core utilizing the Arnett Muldrow Market Analysis completed in February 2015. Global view, local Internationalize business recruitment materials. Seek opportunities to demonstrate our open door to action many cultures. ECONOMIC_ THREATS Topic mendation Complete Housing Promote responsiveness of community on the issue of affordable housing. Identify and share information about how Ellensburg is addressing the communi s concerns. Puget Sound Leverage community assets and strengths to take overflow charge of our future rather than allow the community to develop to meet Puget Sound's needs. use or aata to onve oeasions is essential. EBDA has a contract with the state to provide up to date economic data at the city level. EBNA might also want to consider performing a cell phone survey. An action plan would be created for each individual recommendation with implementation details; a sample format follows. Do we want to Include the opportunity to become •a community recognized by the state as economically distressed and therefore eligible for assistance? THE ECONOMIC DEVELOPMENT STRATEGY — ACTION PLAN The economic development strategy takes the EBDA value proposition (competitive advantage) and translates it into deliverable actions and resources leading to intentional outcomes that are measurable over time. Strategy #1: Make fiber optics a strong value proposition for recruiting and retaining businesses in Ellensburg. finks to what competitive advantage: Broadband/internet, focus on sector business recruitment, and well educated workforce( Description: Establish an EBDA sub -comma o - further the potential of and linkages of munictIM fiber optic offerings and economic development. Anticipated completion: December 31.2018 Task Responsible partv Timeframe Identify external team members (e.g. A. Bowman Assemble subcommittee, meeting once or twice a month for six months Amount I Potential sources Hume Fiscal Anticipated outcome: Recommendation to Measures: Ellensburg City'Councll on how fiber optic offerings can be a competitive advantage for Ellensburg. ECONOMIC DEVELOPMENT OVERVIEW This chapter contains goals, policies, and programs to define Ellensburg's role in economic development, and to help the City build a healthy economy. Although most economic activity is in the private sector, local government's role is to establish parameters for private markets, provide necessary services, and participate in economic development in some circumstances. A healthy economy adds to all aspects of the community, from jobs to infrastructure to community services. A healthy local economy can strengthen the communitys position as a unique and attractive place to work, live, play, and visit. The goals, policies, and programs contained in this chapter aim to guide the City of Ellensburg in developing a supportive business environment for new and existing businesses with the intent of providing a range of employment opportunities for residents, and a strong tax base for the City. CITY OF ELLENSBURG COMPREHENSIVE PLAN * ENVIRONMENT o PAGE 121 BACKGROUND & CONTEXT With a population of just over 19,000 in 2016, Ellensburg Is the center of commerce and government for I(Ittitas County. It offers services for local residents, and the financial, religious, and educational institutions that serve an area much larger than what is within city limits. Ellensburg is a central gathering place for the regional community, and hosts a diversity of activities, events, and services that serve more people than those that reside within the city limits of Ellensburg. Ellensburg is known as the home of Central Washington University and the annual Ellensburg Fair and Rodeo that attracts national attention. The quality of life in Ellensburg can be defined by our clean environment, vibrant downtown, and outstanding outdoor recreational assets, all of which are important factors in nurturing economic growth. Businesses provide property, safes, and lodging tax revenue that help to support public Infrastructure and maintain our quality of life. As local and national economies and lifestyles evolve, it will become more important for Ellensburg to maintain and enhance its livability through good urban design that reflects the values and choices of the community. The Ellensburg community is concerned with the availability of living wage jobs, and with the City's ability to continue providing services that help to foster business development and increase economic opportunities. Residents want employment, retail, and social opportunities that allow them the ability to live, work, and play in this community. Ellensburg's economic base has been relatively narrow since Its settlement in the late 1800s. While Ellensburg still enjoys a strong agricultural base, our community as a whole has become less dependent on the natural and agricultural resources. Today Central Washington University, Kittitas Valley Healthcare, government, and retail industries are strong economic drivers in the community. Ellensburg has also experienced an increasing number of residents commuting to Yakima County and to the greater Puget Sound region for employment opportunities. CITY OF ELLENSBURG COMPREHENSIVE PLAN o ECONOMIC DEVELOPMENT o PAGE 122 Economic Sectors The following is a brief synopsis of the economic drivers in the City of Ellensburg. More information on each of these drivers, as it pertains to land use, is provided in the Land Use Element, Indrrsidrra! Ellensburg's early Industrial development centered along the railroad tracks to the west of downtown. Overtime, land use designations and zoning patterns have continued this pattern, with the bulk of Ellensburg's industrial land located along a narrow strip paralleling the railroad tracks; with most of this land also in the 100 -year floodplain. Industrial land has also expanded westward along Dolarway Road to connect to the west freeway interchange area. Additionally, the northernmost portion of Ellensburg's UGA surrounding the airport is designated for light industrol use. According to the Kittitas County Chamber of Commerce and Ellensburg Business Development Authority, more light industrial land in less constrained areas, along with innovative ideas to mitigate industrial development in floodplain areas, may help to accommodate and attract new businesses interested in the Ellensburg area. corrlmeft*i As more suburban style commercial development has occurred in other parts of the city, the Ellensburg downtown has changed from being the sole center of commerce for the community. However, Ellensburg has been proactive in promoting and investing in downtown as a vibrant location for independent retailers, specialty dining, business and financial services, government offices, cultural attractions, special events, and housing and lodging opportunities. A 2016 Downtown Market Study and Economic Development Plan indicates that local shoppers are traveling outside of Ellensburg to purchase daily goods and services, resulting in significant CITY OF ELLENSBURG COMPREHENSIVE PLAN a ECONOMIC DEVELOPMENT PAGE 123 retail leakage. The nearest large commercial center is Yakima, 35 miles -to the south, and which is a popular destination for retail shopping. There are currently two freeway interchanges, providing access to Ellensburg and substantial opportunity for commercial development. The south interchange at Canyon Road is currently the more developed of the two existing interchange areas, offering lodging, dining, and gasoline sales. The west interchange provides similar services but not at the same Intensity. Both Interchange areas have been identified for regional retail commercial development, at a scale that serve the City of Ellensburg as well as the surrounding region. Healthcare Kittitas Valley Healthcare operates KVH Hospital and seven clinics that include primary care, internal medicine, orthopedics, surgical, and women's health services. KVH alone employs approximately 600 people. The hospital is working on a new campus master pian that will potentially expand the footprint of the campus. As the second largest employer in Ellensburg, KVH is a significant economic driver in the community. With plans for expansion, and projected growth in Ellensburg's 65 or older population, KVH is expected to remain a key part of Ellensburg's economic growth over the next 20 years. Ingthutknal - J ---, Ellensburg has a long-standing and important institutional history; Ellensburg is home to Central Washington University and is the County seat. Local government and education are by far the largest economic sectors ` in Ellensburg. Central Washington University is an important and vital force in the community. CWU's campus occupies more than 300 acres and employees almost 1,400 full-time staff, and approximately 274 part-time staff. In addition, CWU has over 2,000 student employees. In the spring of 2017, the Ellensburg campus enrollment was over 9,600 students. CWU pians to cap student on -campus enrollment at 12,000 students. CITY OF ELLENSBURG COMPREHENSIVE PLAN G ECONOMIC DEVELOPMENT o PAGE 124 The Central Washington University Strategic Plan calls for continued public service and community engagement, with emphasis on the level of collaboration between the University and local communities to contribute to the education, social, and economic progress of Washington communities. Tourism Ellensburg is home of the Kittitas County Event Center which hosts the Kittitas County Fair and Ellensburg Rodeo. The Fair and Rodeo is held each Labor Day weekend and records between 65,000 and 70,000 visitors each year. The event Is continuously ranked in the top 10 rodeos in the nation. The Event Center is located on 21 acres and is valued at about $8.2 million. The Event Center hosts more than 1,500 events throughout the year providing service to community organizations, trade shows, expositions, equestrian and livestock events, and other special events. The Center Includes conference and event spaces, an indoor arena, stock pens, barns, RV hookups, and on-site parking. With some structures built over 90 years ago, the Kittitas Valley Event Center is listed on both the Washington State and National Register of Historic Places, offering both cultural and economic opportunities for Ellensburg and the surrounding region. Technology sector While the technology sector is not a significant portion of Ellensburg's current economy there is potential to grow this sector of Ellensburg's economy. The technology sector tends to offer well -paying jobs and is attracted to good schools, high quality of life, and recreational amenities. Due to Ellensburg embodying these characteristics as well as the City of Ellensburg's telecommunications utility (see Capital Facilities and Utilities chapter) the technology industry may be an area of focus for future economic development. Arts and Culture The arts play an important role in the economy in Ellensburg; home to many artists, designers, creative entrepreneurs, and art nonprofits that often get classified under other sectors of income. The creative sector includes nonprofit arts organizations such as Laughing Horse Foundation who serves as a fiscal sponsor for seven performing arts related organizations such as Jazz in the Valley and the Ellensburg Film Festival. With over 12 participating businesses and year round monthly events, the First Friday Art Walk serves as a regular economic contribution to Ellensburg's economy. CITY OF ELLENSBURG COMPREHENSIVE PLAN , ECONOMIC DEVELOPMENT • PAGE 125 Household income In 20150 the median income for households residing in the City of Ellensburg Is $28,341. This number reflects the large number of households that consist of university students living on little or no personal income. Among onlyfamily households, the median income in 2014 is $60,650. Table 20 compares the demographics and family household income of Ellensburg with Kittitas County, and with Washington State. Table 20 Demographid and Hour hold income Ellensburg Klttitas R!a WashkaWn Shits 2016 population Medlan age Labor force population (age 18-64), percent of total 65 years and over, percent of total population 19,310 43,710 7,183,700 23.7 33.0 37.4 77% 68% 77% 92% 141% 13.6% Median family household income $60,650 $65,303 $73,038 Washington office of Financial Management, United States Census, American Community Survey 5 -Year Estimates, 2010-2014 and 2011-2015 The median age in Ellensburg and Kittitas County reflect the large population of college students. During Spring 2017, there were over 9,600 students attending university on -campus in Ellensburg, or about half of the population of Ellensburg, and just a quarter of the population of Kittitas County. Currently about 14% of Kittltas County's population is 65 years and over. Washington State Office of Financial Management demographers project that this population share will increase to about 20% by 2030, as today's baby boomers enter their 70s and 90s. As the center for medical and other services, Ellensburg could expect to see growth in residents 65 years and over, and an increase in demand for services and senior and/or assisted living facilities, Ellensburg's median family household income is about 85% of the median income of Washington State, and about 96% of the median income of Kittitas County. The median family income in Ellensburg is probably still being impacted by the high student population; however It does highlight the importance of promoting living wage jobs in Ellensburg. CITY OF ELLENSBURG COMPREHENSIVE PLAN o ECONOMIC DEVELOPMENT = PAGE 126 Employment In Kittitas County employment grew at a rate of 2.5% between 2000 and 2008. The County suffered job losses during the recession beginning in 2009, and since then job growth has been stagnant or slow. In 2014, county employment finally surpassed the 2008 peak. During the entire period of 2000 — 2014, county employment grew at an average annual rate of 1,4%. The employment sectors with the highest growth between 2000 and 2014 were professional and business services, and the leisure and hospitality sectors (Table 21). The Washington State Employment Security Department has projected that these two sectors, and Education and Health Services, will experience the highest growth rates over the next several years. Many of EllensbuWs top employers are in these sectors. Table 21. MtNtgs Ccmmty Employment and Growth Ralles by So2or LARGEST EMPLOYERS IN ELLENSBURG • Central Washington University ■ Kittltas Valley Healthcare ■ Ellensburg School District ■ Kittltas County • Anderson Hay and Grain Elmview reirpoint Communications ■ Fred Meyer ■ City of Ellensburg ■ Twin City Foods, Inc. Leisure and hospitality 3,210 2.52% 22.10% 2.07% 1.38% Private education & health services 1,450 2.04% 3.60% 3.59% 189% State & local government 6,340 1.61% 17.00% 1.29% 1.21% Federal government 180 -1.78% 12,50% -1.28% 0.00% *At the time of data analysis ESD had not released seasonally adjusted 2015 employment counts that are comparable to the 2009-2014 data. Therefore, growth rtes are calculated se parately for this one year period. Source: Washington State Employment Security Departmerrt, Labor Market and Performance Analysis, 2015. Ellensburg's annual employment growth rate of 0.7%, between 2002 and 2013, was slower than the countywide employment growth. Between 2013 and 2014, there was an 8% decline in the total number of workers in Ellensburg, a loss of 533 primaryjobs. Between 2002 and 2014 there has been a slow decline in the number of Ellensburg residents who work in Kittitas County, and a steady increase in the number of Ellensburg residents who CITY OF ELLENSBURG COMPREHENSIVE PLAN 9 ECONOMIC DEVELOPMENT o PAGE 127 Average annual growth rate ESD plrvlecled annuel Err4)kr#mrtt s1 0/ %2013 ^ gm.wt...hraft empkrpmd OW2014� 20M - 2014 091=Goods 2013 - 2018.2023 producing 1,510 0.91% 0.00% - Trade, transportation, utilities 2,500 0.12% 5,00% 1.37% 0:.95% Information & financial activities 730 2.41% 5.80% 0.00% 0,43% Professional & business services 680 2.73% 17.20% 1,39% 2.23% Leisure and hospitality 3,210 2.52% 22.10% 2.07% 1.38% Private education & health services 1,450 2.04% 3.60% 3.59% 189% State & local government 6,340 1.61% 17.00% 1.29% 1.21% Federal government 180 -1.78% 12,50% -1.28% 0.00% *At the time of data analysis ESD had not released seasonally adjusted 2015 employment counts that are comparable to the 2009-2014 data. Therefore, growth rtes are calculated se parately for this one year period. Source: Washington State Employment Security Departmerrt, Labor Market and Performance Analysis, 2015. Ellensburg's annual employment growth rate of 0.7%, between 2002 and 2013, was slower than the countywide employment growth. Between 2013 and 2014, there was an 8% decline in the total number of workers in Ellensburg, a loss of 533 primaryjobs. Between 2002 and 2014 there has been a slow decline in the number of Ellensburg residents who work in Kittitas County, and a steady increase in the number of Ellensburg residents who CITY OF ELLENSBURG COMPREHENSIVE PLAN 9 ECONOMIC DEVELOPMENT o PAGE 127 III • ,- - , i 5 *.i u., 4 ,,, work outside Kittitas County. In 2014, the counties where the greatest shares of Ellensburg residents worked are Kittitas (53%), King (14%), and Yakima (9%). Employment Forecasts The employment target is the amount of job growth the jurisdiction should plan to accommodate during the 2017-2037 planning period. Ellensburg's employment target for this period is 6,998 additional jobs. The Kittitas County Conference of Governments countywide employment projection is a 2% average annual growth rate; with 80% of employment growth projected to occur in incorporated areas and their Urban Growth Areas, and 20% projected to occur in rural areas outside of Urban Growth Areas. The allocation method is based on current shares of employment growth by sector based on each incorporated areas baseline (2013) snare of total employment in that sector. See Table 22 below. For additional detail on employment forecasts please seethe Community Profile and Land Use chapters. Table 22. City of ElMnsburg and Urban Growth Area EmploymentAllocardw Jur"ction 2015 fmployrnent 20 yaw employment allocation =7 Ernplaymer t Ellensburg 11,490 5,998 18,488 Total 19,362 11,155 30,517 Estimated employment in 2015 for Ellensburg and its urban growth area is approximately 11,490 jobs, which equates to about 1,4 jobs per household, and about 59% of jobs countywide. Between 2402 and 2013 Ellensburg experienced about 29% of the countywide employment growth The 20 -year employment allocation for the City of Ellensburg would result In a total of 18,488 jobs, and about 1.3 jobs per household. The employment allocation is based upon Ellensburg and each of the incorporated areas in Kittitas County maintaining their current share of employment. Population was allocated using a similar method, and therefore projects that jobs per household would also be maintained over the next 20 years. Based on a countywide land capacity analysis the employment allocation is within what Ellensburg can accommodate, based on the current zoning and land use regulations, The Land Use chapter contains descriptions and locations of future land use designations that will accommodate employment in the form of mixed use areas, neighborhood commercial activities, regional commercial uses, and industrial areas. CITY OF ELLENSBURG COMPREHENSIVE PLAN . ECONOMIC DEVELOPMENT c PAGE 128 E _ GOALS, POLICIES, & PROGRAMS These economic development goals, policies, and programs are designed to work with the other elements to help stimulate economic growth and focus on areas that take into account Ellensburg's unique characteristics and opportunities for growth. Goa! ED -1: Strengthen city partnerships and resources to support economic opportunities. Policy A Continue to Implement and regularly update a strategic economic development plan with representatives from the following sectors: Industrial, transportation, agriculture, tourism, healthcare, and education. Program 1 Coordinate with economic development groups to recruit new businesses. Program 2 Strengthen collaboration among the business community, economic development stakeholders, Central Washington University, healthcare organizations, local government, tourism organizations, and other higher education organizations. Program 3 Partner with local organizations to establish training, funding, and business development opportunities for small businesses. Program 4 Develop, refine, and implement economic monitoring to help advance the Citys economic development policies and programs. Policy B Integrate economic strategies into community planning activities. Program 3 When evaluating future locations for particular land use districts and zoning designations, consider local and regional market needs (i.e. trip counts, visibility, etc.) of the types of businesses likely to locate in those areas. Program 2 Direct capital improvements to key areas to create a sense of place, and grow and attract businesses. Goal ED -2. Stimulate and diversify Ellensburg's economy. Policy A Encourage growth that will provide goods and services to the local and regional community. Program 1 Market to a variety of business — both large and small —that provide goods and services to local and regional populations. CITY OF ELLENSBURG COMPREHENSIVE PLAN ECONOMIC DEVELOPMENT PAGE 124 Program 2 Promote economic activity to diversify sources of revenue and expand the employment base. Policy B Promote the retention and expansion of existing businesses as well as the development of new businesses. Program 1 Solicit comments and feedback from local businesses on things that the City could change to better support local businesses. Program 2 Establish incentives and development flexibility to retain existing businesses, attract new businesses, and encourage quality development. Program 3 Partner with economic development groups to inventory and share information regarding vacant building and lot space. Program 4 Promote development of vacant lots and infill development within Ellensburg's urban core. Program 5 Continue to provide high quality and cost efficient city services and facilities, and promote these as one of Ellensburg's economic development assets. Program 6 Coordinate with economic development stakeholders to assist businesses in creating strategies and action plans. Policy C Develop and maintain an effective and predictable regulatory environment. Program 1 Provide efficient, predictable, and customer -service oriented permitting CITY OF ELLENSBURG COMPREHENSIVE PLAN • ECONOMIC DEVELOPMENT a PAGE 130 processes. Program 2 Consider streamlining permitting by establishing a one-stop permit center for all permits. Program 3 Encourage the use of the pre -application process as a means of identifying potential obstacles to the development of a particular site. Program 4 Establish predictable processing times and consistent review processes, and post timelines an the C'rtys website. Policy D Encourage development of light industrial uses within the City of Ellensburg. Program 1 Develop City -owned property off Dolarway Road for a light industrial park. Program 2 Continue to partner with Kittitas County on development of the Kittitas County Industrial Park at the airport. CITY OF ELLENSBURG COMPREHENSIVE PLAN • ECONOMIC DEVELOPMENT a PAGE 130 Goal ED -3 Grow and sustain a qualified workforce. Policy A Coordinate with local high schools, higher education institutions, workforce development, vocational rehabilitation, and local businesses to train a workforce that Is prepared for emerging job markets. Program 1 Consider public/private sponsorship of entrepreneurial education. Program 2 Encourage organizational partnerships that focus resources toward increasing the employability of all citizens. Program 3 Encourage student internship programs with local businesses. Program 4 Diversify and expand the city's job base, with focus on attracting living - wage jobs, to allow people to work and live in the community. Goal E04 Emphasize economic development of downtown as an economic, tourist, retail, art and cultural, and event destination. Policy A Promote access from Interstate 90 and create a desire to stop within the central business area of Ellensburg. Program 1 Establish land uses that recognize Canyon Road, Main Street, University Way, Vantage Highway, and Dolarway as entrances to our city. Program 2 Expand and enhance the wayfinding system to local businesses„ city parking, tourist facilities and attractions, and pedestrian paths. Program 3 Encourage and support cultural activities and the arts and recognize their contributions to the local economy. Program 4 Consider an incubator in the downtown area. Policy B Partner with local organizations to Implement the downtown economic development pian. Program I Encourage mixed uses in the downtown area to support increased commercial and tourist activity, walkability, and housing options. Program 2 Provide enhanced public gathering places downtown to encourage a sense of place and community. Goal ELIC -5 Embrace tourism as an economic development tool. Policy A Market Ellensburg's tourism opportunities by developing a marketing strategy to address all tourism segments. Program 1 Advertise to targeted interests at the regional, national, and international level. CITY OF ELLENSBURG COMPREHENSIVE PLAN . ECONOMIC DEVELOPMENT o PAGE 131 Program 2 Keep detailed and updated content management platforms such as websites and mobile applications. Program 3 Support visitor infDrmation centers and Idosks. Program 4 Explore future development of visitor information services near freeway Interchanges. Program 5 Promote Ellensburg's role as a destination to regional recreation and cultural activities. Program 6 Support destination marketing organizations through lodging tax funds. Policy 6 Market EllensbuWs central location for conventions, business meetings, sports tournaments, cultural events, and other activities. Program 1 Inventory and manage data about where regional tourism -based enterprises can meet and use community spaces and resources. Program 2 Coordinate and promote a central website for public/ private regional facilities. Program 3 Provide a consistent level of reliable public transportation between public and private local facilities and accommodations. Program 4 Leverage lodging tax funding to support events and promotions and development of facilities. Policy C Support and expand opportunities for tourism based investments. Program x Identify appropriate zoning districts to allow for short-term rental properties. Program 2 Identify appropriate zoning districts to allow for ancillary tourism activities. Goal ED -6 Foster economic development through promoting enemy efficiencies and use of renewable energy. *Policies and programs on renewable energy and promotion of energy efficiencies are addressed in the Capital Facilities and Utilities chapter. CITY OF ELLENSBURG COMPREHENSIVE PLAN c ECONOMIC DEVELOPMENT a PAGE 132 ACTION ITEMS Airport master plan implementation Collaborate with Kittitas County to ensure the implementation of the airport's master pian contributes to the overall economic growth in the region, and that Ellensburg's land use plans are compatible with continuing airport and airport -related uses. Economic development vision and strategic plan Collaborate with local economic development organizations to prepare an economic development vision and strategy for Ellensburg, which identifies the types of land use designations and the relative priorities cf capital investment necessary to foster economic development and promote living wage jobs in Ellensburg. Increase usable industrlall-zoned property Review the industrial land inventory and identify and implement steps within the City's control to make more light industrial land available in less constrained areas. KltWas valley Event Center Master Plan Encourage an updated long-term plan for the Kittitas Valley Event Center in order to facilitate Jong term growth and best land use. Collaborate with the Kittitas Valley Event Center as a major cultural site and economic generator in Ellensburg. ser"milne/aasaomate permitting process Review land use permitting processes and make adjustments as necessary to streamline approval processes while still ensuring projects enhance Ellensburg's economic vitality and community character. POLICY CONNECTIONS Policies and programs that address energy efficiencies and renewable energy are addressed in the Capital Facilities and Utilities and Environment chapter. The Transportation and Capital Facilities and Utilities chapters address policies and programs regarding the development of infrastructure for economic development including roadways, transit facilities, and telecommunications. Goals, policies, and programs that address commercial and industrial land use designations are addressed In the Land Use chapter. Policies and programs that address affordable and diverse housing options are in the Housing chapter. CITY OF ELLENSBURG COMPREHENSIVE PLAN • ECONOMIC DEVELOPMENT s PAGE 133 Downtown Market Study and Economic Development Plan Pr"N"d 1W amett MddroJF " KAN. PRESERVE. PRCMO?r;. Proprred for City of Flldn%burg Lodging Tao Commission E!ionAnArg Downtown Association RP ElleviAwro 5usinuss DevolupmentAuthority kittlas County Chamber of Comnwrce TABLE OF CONTENTS 1.0 Introduction........................................................................................................................ 3 1.1 Background............................................................................................................ 3 1.2 Study Scope........................................................................................................... 3 2.0 Market Study....................................................................................................................... 5 2.1 Market Definition................................................................................................... 6 2.2 Trade Area Demographics and Market Segmentation ........................................... 9 2.3 Retail Market Analysis........................................................................................13 2.4 Overall Market Observations and Conclusions................................................... 21 3.0 Physical Assessment......................................................................................................... 22 3.1 Background...................................................................................I...................... 22 3.2 Existing Conditions.............................................................................................. 22 4.0 Recommendations.............................................................................................................26 4.1 Reinforcing the Center......................................................................................... 26 4.2 Expanding Success............................................................................................... 31 4.3 Connecting the Community................................................................................. 35 4.4 Enhancing the Visitor Experience....................................................................... 37 5.0 Conclusion........................................................................................................................ 41 1.0 Introduction 1.1 Background With a population of just over 18,000 as of the 2010 Census, the City of Ellensburg is uniquely positioned in central Washington at the intersection of Interstates 90 and 82. It is the center of commerce and government for Kittitas County, which extends from the Cascades to the West and the Columbia River to the Fad. it is a popular destination for travelers because of its location, and a cluster of hotels and restaurants serve both exits to the community off of Interstate 90. Ellensburg is also known as the home of Central Washington University and the annual Ellensburg Rodeo that attrmas national attention. The downtown hes maintained much of its historic charm including Victorian, Art Deco, and vernacular buildings of the 1920's. As is the case with many communities, downtown Ellensburg has changed flum being the sole center of commerce for the community as suburban -style commercial development has occurred in other parts of the city. However, Ellensburg has been very proactive in promoting and investing in the downtown as a vibrant location for independent retailers, specialty ialty dining, a variety of business and financial services, government offices, cultural attractions, and special events. The community has not been content to rest on this success and has continued to invest in downtown. In 2013, community leaders acknowledged that a significant building in downtown — the Geddis Building — was at risk of becoming a serious blight on redeveloping downtown. The large building located at the pivotal southwest corner of 41 Avenue and Pearl Street was in decline. As a result, the City of Ellensburg, the Ellensburg Downtown Association, the Kitthw County Chamber of Commerce, and the Ellensburg Business Development Authority forged an alliance formally called the Downtown Revitalization Committee, but more commonly Imown as "The Downtowners," to purchase the building, hold it in trust, and resell it to an owner that is actively renovating the property and plans to add new residential units and retail development to downtown. The Downtowners realized that this success could be parlayed into an ongoing proactive approach to continued public/private partnership investment in downtown Ellensburg. 1.2 Study Scope This study was commissioned to examine both the market opportunities for downtown as well as the physical environment and to recommend how the Downtowners should continue to utilize their knowledge and connections to create investment and development opportunities in the community. This study involved two key components that are closely intertwined. The first is an understanding of the Ellensburg market through a market analysis that looks at retail, residential, office, and accommodations possibilities. The second is connecting this market knowledge with key sites and buildings in downtown Ellensburg to prioritize potential for future investment. Of particular interest to the group was higher and better use of upper floor spaces in Ellensburg and over the course of the project examining a larger "footprint" for downtown became apparent. 3 The study began in July with an immersive three-day visit to Ellensburg that involved back to - back interviews and roundtable sessions with a variety of stakeholders, site visits to selected buildings and sites in downtown, as well as an overall community tour. The study included two customer zip code surveys conducted in both July and October that provided important data about the visitation patterns in Ellensburg. An intermediate meeting occurred over two days in September that provided the results of the first zip code survey, physical analysis of downtown, and a detailed discussion of next steps. Tho study involved several online presentations to the Downtowners partnership and concluded with a public presentation to City Council on November 2, 2015. 4 2.0 Market Study This section of the report presents the findings of the market research for Ellensburg and sets the stage for further analysis that can be used to recruit business, enhance the housing market, help existing retailers target customers, and implement the accompanying marketing and recruitment strategy in a later section of this report. The goal of this market study is to show community stakeholders and potential investors how to capitalize on potential residential, retail, and office market oppnrttmities and to leverage investments that will sustain the Ellensburg community while preserving the character that the community values. Chapter 2 is divided into four sections: Section 2.1 describes the market definition based on zip code survey work completed by businesses in the community. It also provides insight into Ellensburg's trade am demographics and presents nuukat dais related to Ellensburg's primary and secondary trade areas. Section 2.2 provides demographic profiles of Ellensburg's primary and secondary trade areas. This section also presents a more detailed market segmentation using PRUMO Lifestage characteristics. (PRU844) is a product of Nielsen Claritas.) Section 2.3 presents the retail market analysis that shows the amount of retail sales ,leaking from Ellensburg's primary and secondary trade areas. This information is based on the most recent data available and is a reliable source for understanding overall market patterns. This section concludes with some key opportunities for retail that could be used to both enhance existing businesses and recruit additional businesses to the Ellensburg community. This section also leverages Ellensburg's retail and demographic data to evaluate other market segments such as residentrai and office uses. Section 2.4 provides a concise conclusion to the overall market analysis 5 2.1 Market Definition Unlike radial and drive time studies that use arbitrarily chosen boundaries for customer trade zones, the market definition exercise for Ellensburg is based on zip code surveys completed by cooperating merchants. Zip code surveys have their own limitations, since zip code geographies can be fairly large and stretch beyond typical market boundaries. However, it is the only technique that correlates clearly with customer traffic collected by merchants. Recorded zip codes are used to define a primary trade area, which is then analyzed in temps of demographics and economic activity. Two zip code surveys were conducted in Ellensburg in order to understand the market dynamics of the community while Central Washington University was in and out of session. The first survey was held in July of 2415, and the second held in October of 2015. Sixteen local community retail businesses graciously participated in the zip code survey of their customers in July, and seventeen participated in October. Merchants were provided with a form to record customer zip codes and asked to keep the log for all customers during a ten-day period. ZLI Zip Code Results The results of the zip code survey are presented in Figures 1.1 and 1.2 on the following page and are summarized as follows: • In July, Ellensburg businesses recorded 1,086 individual customer visits from 156 unique zip codes representing 28 states and 12 foreign countries. In October, they recorded 1,808 individual visits from 178 unique zip codes representing 21 states and 3 foreign countries. • During both surveys, the 98926 zip code for Ellensburg had the most customer visits, controlling 56°% of the visits in July and 51% of the visits in October. • Customers were asked to identify whether they lived inside or outside the City of Ellensburg. The two results were similar with 42% of the customers living inside the city limits in the July survey and 39% in October, likewise, 14°% lived outside the city limits in July compared with 12% in October. • Central Washington University students were asked to identify themselves in the survey and represented the second highest percentage of visitors to shops and restaurants in the downtown. As would be expected, their results varied between the two surveys with 7% of the visits in July and 20% of the visits in October. + Visitors from the neighboring zip codes Kittitas and Cle Elum held 2°% and 4°% of their respective visits in July and 4% and 5% of their respective visits in October. • Customers from the rest of Washington accounted for 8°% and 6010 of their respective visits in July and October. Many of these customers were regional in nature, so only a portion of these might be considered "visitors" in the traditional sense that they do not rely on Ellensburg as a regular destination for shopping. • Visitors from outside the state of Washington accounted for 12°% and 4°!0 of the overall respective visits from July and October. These numbers are quite significant when taken into the context of the visits from the rest of Washington. Visitors represent a key portion of the 6 market to the community, meaning that Ellensburg is serving not only a local and regional market, but a tourism market as well. 9% 9% 4% 3% 1496 a m =-HCE CwMwMVqpMUft Mtn 42 CbZ= SwAh Ga r-= Y olC=-.v 11.a�: a f F1ladnsr.�.a Qi�C` 9ta�a Figure 1.1; Crrstaoff Fafts to Parddpadng Bushmses by ZO Code In Ady of 2011 4%0% IM 1T 5% 2% 21M 12% MIJU $h:d9d HL -J!" 39% MkMV Ck Eium 'SvMhC&Mw.i Xboarmw Tdam as MEWIftw 10' Cthr gym[ ECWmrcmmddm F14w a 1.2: Cks onff Fbia to parte Busbiesses by Zip Cods in october of 2ols. 7 21.2 Trade Area Definition Although the number of visits provides an overall view of customer origin, a more accurate way to evaluate customer loyalty is to flame customer visits in the context of the population of each zip code. This method corrects for zip codes that have exceedingly large or small populations that might skew the market penetration data. The primary trade area (PTA) is the geography where the most loyal and frequent customers to community businesses reside. Tables 1.1 and 1.2 reveal customer visits per thousand residents, showing an index that allows for an equal comparison of market penetration per zip code. It shows customer visits per thousand people for the highest representative visits to the Ellensburg community during both survey periods in 2015. Msft per ZIp Name PaWMM Was ThouOwid * � r:',Ansb,jrg NSId. E RF i 14 7X S.` r +? !sus •i o r 1� 165 CWU Cel Washy on Univ 11789 71 so �f;�4 i�- .'� 43. 1�':0'.: :oma f I•.,;z s. .'.H $�i ,�.�,.. Table M.- CkWomer visits per l M population in July of 2015. zip Nerve Population V ft Vwft Per Thousand * � r:',Ansb,jrg NSId. E RF i 14 7X S.` r ;�.• , ac�ll 4 ,,,.� 1� 165 CWU Caraml INashiroon U 11,798 3M 31 p �f;�4 .'� 43. '.,. :Ae FE71i I IIL Ka 762 Table 1,2. Cnestomff visits per 1,000 population in October of2011 Determining the primary trade area can sometimes be more "art" than science. At times, significant breaks in customer visits are not obvious. In Ellensburg's case, the division is clear; Ellensburg, Kittitas, and CIe Elum emerge as the "most loyal' zip codes for area businesses and are thus identified as the primary trade area. Additionally, visits from Central Washington University students also fall into this range during the October survey but not the survey conducted in July. This suggests that for the months that school is in session, CWU students contribute significantly to the Ellensburg market. 8 2.2 Trade Area Demographics and Market Segmentation 2.21 Ellensburg PHmary Yade Area Demographics In 2015, the population for Ellensburg's primary trade area is estimated to be 33,591. The population grew by 23.3% between 2000 and 2010 and is earpected to reach 35,037 by 2020, which is equal to adding about 136 new households per year. The median age for the primary trade area is 30, which is lower than both Washington at age 40 and the United States at 37 and is likely due to the age and number of CWU students. Household income for the primary trade area is $41,104. This income level falls below that of Washington at $56,835 and that of the United States at $51.,939. (Source; Nielsen Claritas, Inc.). Additionally, it should be noted that this report was run by zip code of residents; while CWU does not have its own zip code, students are included in local census data and therefore should be included in this report from Ellensburg's zip code which will naturally decrease the Median Household Income for the community. =ago �Sojxlim Mss WVr 241D Cep aocvcma. Wv Owesms-= 43ft Cft" 1030-2D3t 3.5 % atmk2me4m Blah Table 2: Prbwmy Trade Area Population Z12 Market Segmentation Market segmentation is a technique used to summarize demographic information into easy -to understand categories. The market segmentation illustrated for Ellensburg's primary trade area uses Claritas PRIZMM) data. PRIZM defines every U.S. household in terms of sixty-six demographic and behavioral types to help determine lifestyles, purchasing behaviors, and preferences of the customer base. 2.2.3 PROMLifestage Segmentation The chart on the following page provides an easy to understand perspective on Ellensburg's market segmentation. Broadly speaking, Careen Colors represent younger households generally without children in the home. Blue colors represent families with children. Red colors represent older families who may or may not have children In the home. In the case of Ellensburg, the primary trade area's share of the PRIZM Lifestage categories is heavily skewed to "Striving Singles," categorizing 32% of the households (as shown in pale green in Figure 3). "Young Achievers" (in green) comprises 189/6, and ` =Midlife Success" (forest 9 green) and 'Mainstream Families" (sky blue) each comprise 9% of households. Within each Lifestage category, darker shades represent higher socioeconomic status, while paler shades represent lower income levels. While Ellensburg has a large share of "Striving Singles" households with medium and low socioeconomic status, this can be explained by the proportion of college students that live in the community. Descriptions and predicted characteristics of the most common segments in, Ellensburg are included in Table 4. Columns include Lifestage, segment category, a count of households in the primary trade area that fall into each category, as well as predicted household characteristics, which include income, age, composition, housing tenure, educational attainment, employment, and race. k i � �IME]L!E'RICCE� f � :.iYOIJIB ACF�NEIS STRR MMM LES ' j Rm umuATiawimrm f 4 YOUPO ACCUMU0 NOW MANSTREAM rAMlM SUMMM PAM UM A 19APPLUENT IMM hES75 �+ ACOMMRhS,TIVEC1A9�dCSS !I! CMMOL S ODLPLB StEME OSEIMM [[ 3 k 3'� E Figure 3. Prbnary TradeArea PRI2ML age Segmemitedon (Source: Nielsent Clar&q, lack. ffa The chart above depicts broad categories of households. This section portrays key sub categories of households along with descriptions of lifestyle characteristics. The descriptions below aro provided by and paraphrased from Nielsen's descriptions of their PRIZM Lifestyle Segniontation data. The rounded percentage of households in the primary trade area and the rounded index to the United States is shown next to each description. An index of 100 would be a representation that matched that of the United States. These percentages were gathered from the area within a ten-minute drive time from the intersection of 4a' Avenue and Pearl Street in the heart of Ellensburg. City Startups 25.2% of Househokh in the Ellensburg primary trade areq Indic to United States: 2,369 In City Startaps, young to middle-aged, multi-ethnic singles have settled in neighborhoods filled with cheap apartments and a commercial base of cafes, bars, laundromats, and clubs that cater to twenty -somethings — one of the youngest segments in America—with ten times as many college students as the national average. Greenbelt Sports 4.2% ofHomeholds in the Ellensburg primary trade area, Inc to United States: 966 A segment of upscale exurban couples, Greenbelt Sports is known for its active lifestyle. Most of these older residents are married, college-educated, and own new Domes. And few segments have higher rates for pursuing outdoor activities such as skiing, canoeing, backpacking, boating, and mountain biking. Boomtown Singles 10.0% of Households in the Ellensburg primary trade area, Iodex to United States. • 939 Affordable housing, abundant entry-level jobs, and a thriving singles scene --all have given rise to the Boomtown Singles sent in fast rowing satellite cities. Single and working-class, these residents pursue active lifestyles amid apartment complexes, bars, convenience stores, and laundromats. 2.2.4 Market Definition Observadens Ellensburg benefits fimn a robust mncture of visitors, and yet the local and regional population still dominates the market base. This presents an important marketing opportunity that mandates that the community retain a message that is appealing to both locals and those from out of town. Having completed over 200 market studies, patterns emerge over time. A community that benefits from over 15% of its visits from out of the local county is rare to see. It indicates that the visitor market is important. Nearly 1 in every 20 visitors is from King County, Washington — a pattern also unusual as large metropolitan areas frequently have less than two percent market share in smaller communities over an hour's drive away. This indicates that there is a strong market to the west of the Cascades that can be reached through selective media Kittitas County Tourism is already tapping this market and these numbers are bearing the fiuh of this marketing initiative. We recommend continuing this push to market Ellensburg to the cities west of the Cascades. 11 The influence of Central Washington University is very strong. Lven during the summer season students represented 7% of the customer base. When the University was back in session student traffic increased to 20% of the customer visits (one in every five visits). Of course, not all businesses will cater to the college student but the market is real and provides a chance for ongoing collaboration between downtown Ellensburg and Central Washington as a major institution and important downtown market base. From a tourism standpoint, the percentage of students is a key indicator that marketing downtown to parents and visitors to the University as well as students themselves would be a key strategic move. Between 2000 and 2010, the population has enjoyed robust growth and is projected to continue to grow. This is a fimdamental strength in any market analysis. Income levels in the primary trade area are lower than both the United States and Washington State, but the college student presence can attribute to this since college students count in the Census at their school of residency. The psychographic analysis of Ellensburg indicates strong potential to retain talent cultivated at Central Washington and for others who seek to live in a vibrant community with an abundance of outdoor recreation opportunities along with reasonable proximity to a major metro area. Retaining students in a "college town" can always be a challenge and many students will naturally gravitate westward to the Seattle/Tacoma Metro area to work. However, there are recommendations later in this report designed to capture some students who wish to stay in the area (or recapture them later on). 12 2.3 Retail Market Analysis Ellensburg is a retail center serving the primary and secondary markets defined above. This section examines the Ellensburg Market to identify potential opportunities for new or expanded stores by examining `mil leakage." This will allow the community to assess what kind of additional stores would be attracted to Ellensburg and will help individual existing businesses understand how they can diversify product lines to capture this leakage. 23.1 Retail Leakage in the Trade Areas Retail leakage reffers to the difference between the retail expenditures by residents living in a particular area and the retail sales produced by the stores located in the same area. If desired, products are not available within that area, consumers will travel to other places or use different methods to obtain those products. Consequently, the dollars spent outside of the area are said to be "leaking." If a community is a major retail center with a variety of stores it will be "attracting" rather t "leaking" retail sales. Even large communities may see leakage in certain retail categories while some small communities may be attractors in categories. Ellensburg is a strong "attracting" community in many retail categories and is "leaking" sales in other categories. Such an analysis is not an exact science. In some cases large outflow may indicate that money is being spent elsewhere (drug store purchases at a Target or apparel purchases through the internet). It is important to note that this analysis accounts best for retail categories where households (rather than businesses) are essentially the only consumer groups. For example, lumberyards may have business -to -business sales that are unaccounted for in consumer expenditures. The best example for Ellensburg is gasoline. Ellensburg can capture some of the inflow of dollars from gasoline stations, but it is unlikely that truckers are going to be the potential customers who would go downtown to eat and shop. Stores such as jewelry shops and clothing stores are more accurately analyzed using retail leakage. The leakage study for Ellensburg is a "snapshot" in time. Consequently, there are factors that point to this being a more conservative look at retail potential depending on what factors are examined. For example, population growth means that there will be more customers in the future resulting in greater demand for retail. A second factor making this study more conservative is that the leakage study only examines the market demand of the geographies defined as the primary trade area identified for Ellensburg. A successful store model can capture from well beyond the defined primary trade. geography and foster a strong visitor market, which is evidenced in the figures 1.1 and 1.2 which show over 10% of the customers aro coming from outside of the state of Washington. With these conservative factors in mind (meaning our numbers represent `minimum" potential and not `maximum" potential) the primary trade area selected store sales equaled $520.3 million, in 2015. Consumers in the same area spent $541.9 million. Therefore, the primary trade area is leaking $21.5 million in sales annually. Ellensburg is unique, however, in its location along Interstate 90. The city serves as a stop before and after crossing the Snoqualmie pass over the Cascade Mountain Range, and it sits at the intersection of a major East/West Interstate and a North/South Interstate. The result is that 13 neatly one fifth of all sales in Ellensburg occurs at gasoline stations. When taken out of the equation, Ellensburg's leakage increases dramatically from $21.5 million to a substantial $129.4 million. If the community were to capture just a portion of this leakage, it would support additional and expanded retail opportunities both in downtown Ellensburg and throughout the City. 2.3.2 Detailed Retail Market ortunUy Tables Section 2.3.1 explores the retail trade patterns in aggregate, the tables on the following pages explore the individual retail categories where Ellensburg is leaking and gaining sales in the primary trade area. This data should be used as an overall guide to retail market potential and should not substitute for detailed market research on the part of any business wishing to open in the area. Please note that some categories are subsets of larger categories. The numbers next to each store type represent the North American Industrial Classification System code (NAILS). The green oolumns represent the consumer demand in the Ellensburg trade areas. The light blue columns represent the store sales for all retailers in the trade areas. The dark blue columns indicate the retail opportunity gaps and retail surpluses in each category. Numbers in parentheses indicate an inflow of dollars and numbers outside of parentheses indicate market leakage. 2015Deoad 2015 Supply %Opporwfiro l'nrtilt Retaiil5taree (COnE (gmv r'.wplurtirr C:alw,lrr RIS,) SInlef) Tota! Relarl Saks & Eatm& Dnmlwog Places 541,862,569 520,338,429 21,521.140 EXCLUDM Gas Staboirts 452,337,089 352.942,944 129.39-045 Moto' Vahwk & Patis Deelcm441 119,940,737 88,907,793 9,02;9" 7.1 1" Automotive Dealers -4411 97,956,748 41,068,070 MA"4 = r Other Manor Vehicle Deakts-412 13,651,653 19,984.273 16.3320 1;&.4% Aut4matrvePmWA=s/rues-4413 9,332,336 27,855,450 f 194MI14) l; a FurnydnrB & Home P=181imgs Stom-442 10,215,203 11,028,224 ,4 13.a2 : a 14�R_ir's. FuinrtmeStores- 421 5,187,588 9,169,029 1=_illE_44,; Oe VF Kome Furm hung Stoma -4422 5.027,615 1,859.195 3, IN 11 (r.-fi Eleatomas& 4pplimmSwes-443 10,994,4#5 3,531741 x,461,761 :=.141 4pphance, TV, Eiccomcs Stom 44311 5,591,642 1,914,125 :: 4;'? g, e *' 0* Hougehold,Appiiatm+Stotes-443111 1,468,794 429.338 ;5h Radio. TV, Electramci Stores -443112 7,122,848 1^737 :.a 6.06, Computer & Sottwatae SMrea 44312 2,174,486 1,618,616 - c: VY!1 7+ 49;a Camera & PhotWaphta F quip .44313 220,317 0 Building Material, Garden Bgwp Stares 444 56,456373 64,191,935 a. moa) BwWmg Marginal & Supply -4441 47,34058 36,461,642 10-WJ * Hams CenbKs4"l 1 19,297,564 9,926,954 9-wkafiv PaW & Wallpaper SWa, 44412 758„201 911,197 (rtY Hardgratre Storrs -44413 5,132,541 10,970,538 SAX%,W) Odier Building Mat Deafen -W19 32.160,652 14,650,963 yA"W a ` BuildmgWLumberywds-444191 8,559.161 5,479,57.5 3.109:i36 6X�,� Lavn Qardm EqurprSupply Store"442 9,107.415 27,730,2N (IAA22A ? W �". Outdoor Power Equip 5tore5-444+1 3.239,493 21,020,327 t t7.728.i`?M) 04S'1°• Nuismy & Garden Cenbe &4"22 5.5679.2 6,709,966 11=32.3i'j 114 1% 14 Raiff mores 2.015Dwamd 2015Supply bDpparrunitx Food & Beremge Store*145 (OM er (BCU t;ee ,Pkw a-4juu re cuawly 5tores-4451 49.5553,500 44,529,573 3,6UM5 SON Supernmkets, Oroomy Stotes-44511 46,274,188 38,572 00 7.701.Rt! Conwmence S as-44512 3,279,320 5,957,273 row") Spocralty Food Stm*4452 6,213,835 13,369,485 f IM4471 Rem. Wme & Laguesr States-4153 22,177.725 838,174 2I.3MIST 3 3iw Heft &. Personal Care Stores-446 26,217,685 10„573.777 ls.6+3.9Rt o..0".4 Phstntacres & Drug store x4%11 20,884,343 7,159 605 13.72A 131 34Y?. CaNUIetics, Beauty Supp, Peefume -44612 1,778,041 958,1142 119.999 33.9% Optical Goods Stores-44613 1,189431 730,128 459.,3n3 61,41,0 Other Health & Persoinal 044619 2,365,870 1,726,002 639,468 ?, tl°L Guollu SMowA47 59,52.4.480 167,3951485 { 107.MM) 211% Gasoline Stations w/Catty Stores-44711 43,358.$49 84,531,532 (41.:77,6x31 19i,04LA Other Gasoline Stabon -44719 16,1b6,631 82,863,953 {66.697..122) M 2 d`: Clothing & Clothing Accemones Stoles-448 24,812,345 3„5411,007 21.2731 1 d xfi. Closhmg Stores-4481 1.3,477,864 3,715,710 10,76ZI 20 t fi. Mews clothing Stores-44811 704,143 2Q4,624 499,519 19 ?o ID. Women's Clothtag'Ston*44812 3,041.275 458,2 3 2. >t3,Q9: 1 £ V. Chelehen's, lnhW Clotlmrg-44813 695.942 237,319 OL4M 14 ti-� Powly Clothing Sbwa&4014 7,263,350 1,461,I97 5.409153 2t}. tilV Cktthmg AcceasotusStores-44815 602,151 0 607,151 Q-0% Outer Clothing Sbms-44819 I,171,003 354,167 81611 t() 2% Shoe Stores-4482 2.163,205 441,644 1.721.3b1 N-A% Jewelry. Luggage, Leath Goods4483 9.171,276 3W53 k7tk623 42% Jewcliy Stores-44831 8,117,459 382,653 1,734,306 4 LAUW & l.MlterOW644832 1.053,817 0 1.033,817 k1 fr=4 Sporting Goods, Hobby. Book. Mirsiio-451 11,583.696 15,688,52.4 X4.1 o4,g 1 Spordw Goods. Hobby, Music Inst-4511 9,353,161 12,959,694 .13~33) Sporting Goods Stores 111 4,81.463 11,185,264 (6-203.797) Hdit, Toy & Game SbarcioM 112 2,5M868 1,076,680 1.413118# r : ki. Sewing Not Good645113 899,831 0 MAN «* v Mesa CW Instrwient & Supplies-451 l4 952.999 697,754 255.2* *. Book. Penodr Ad & Music Stores-4512 2.$30,535 2.728,530 140%2931 , : 2 ; Book Stores & News Dedeis-4S 121 1,998,814 2,728,530 ('73o%) Book Sbare"51211 1,819,627 2,729.830 (90811 I Neft Deele rs & Tlewuftnds-451212 179,187 0 t7Ur Prerecorded rape, CD, Record-4512.2 231.721 0 2 :1 ;2:1 w , Geamul Muebandow Swiss-452 65,527,155 20,967,881 1 434-? f4 w States. Eescl Leased Dep 26,629,260 4,739,92,3 21.10 qx? 1' Odw Goneral Mer+ch SIM= 4529 38,897,895 16,227,958 MA69.93"' w I +1, Mwelbucuta Stom Rotaticls 453 16,035,181 5,2#,681 10.1Sea.340 Fkwnb-4531 541,812 256J60 U.1 M Oft* &Wpltm Stationery. G N4532 7,405 451 49 666 6,921).7$1 Office Supplies & Stas wmy-15321 3.479.820 0 3,4roju GtkN evelty & Souvam S'iam"5322 3,925,631 484,666 3,"kau I- 3w, Used hftdiandraei Store"533 1,341,052 1.500,841 x{159.7891 T 1 ytiF 15 16 7415 Da mad 2815StrppIy UPPOLIPLkAh � r� Rig Mora (CAmna r EaP.) Well) Dthet Mec SwteRetaiiets-4539 6,766,866 2,963,014 M03.932 i Foodsamm & DtinkmS P1 722 62,589,198 68.570,141 (5,945504) loll-SemceResmnmuti-7221 28,293,276 31,353,163 j3 :S87i Lmited-Semot FAtitag Pbms-7222 24,815628 27.549,534 j2.M.VW Special Foodsenvices-7223 6,821,028 8,437.0I8 (1.61519" DnakmgPlacee -Alcoholic Bev-7224 2659,266 1.230,434 61-43"a • ' Figure 3: Retail Leakage In tate Primary Trade Are. Source: Neilsen 16 23.3 Overaft Retail Market Opportrtnittes The retail market potential for Ellensburg combines many different facets of the data gathered above. Retail markets depend on both quantitative and qualitative information. Moreover, just because there is retail market potential for a potential retail store type in no way ensures success of that stone type in the community. There are many reasons why a business might succeed or fail, and the retail market is but one of those factors. The days of the downtown competing with suburban locations for primary retail have long since vanished. The major "pro" of keeping all retail in the community is that once a Shopper has left, they have left for the day and their money will follow. This section explores retail development likely to develop in suburban locations in Ellensburg. Family clothing — This category includes stores such as TJ Maxx, Ross, and similar We stores that cater to uli family members. They typically locate in suburban market developments. With over $5 million in leakage from the primary trade area, this could be a suburban opportunity for Ellensburg. A store of similar type (though unlikely a chain) could also work in a downtown setting. Auto Dealers — Ellensburg is home to a number of highly successful auto dealerships, though not all auto brands am currently represented in the market. There is an opportunity for new car dealerships that would likely develop in a suburban location. There is also a growing trend of downtown auto dealerships decamping to suburban locations for better exposure. Electmnics — While Ellensburg is leaking sales in the electronics category, this store type has proven to be problematic as of late with the demise of Circuit City and the bankruptcy of Radio Shack. A regional electronics store may be successful based on the market leakage. Pharmacies — Surprisingly, Ellensburg leaks sales in Pharmacies. This could be a trade of the retail dollar for in-store pharmacies at stores like Fred Meyer or, more likely, a signal for additional demand. The location is likely to be suburban and will have little to no impact on the downtown pharmacy in Ellensburg. • Honse Improvement Stones — This is an intriguing category for Ellensburg in so far as independent garden dealers, hardware stores, and similar store types have proven to be great for the community. A home center such as Home Depot might be plausible based on these numbers but would likely have a negative impart on existing independent merchants. General Retail -- This category includes stores like Fred Meyer, Target, and Walmart. Ellensburg currently has a high quality Fred Meyer in very close proximity to the core of downtown, although separated by storage and warehousing uses that would not encourage walling between the two. Retail leakage indicates potential for some degree of additional general retail. The impact of such a store on downtown would be minimal and would likely benefit downtown Ellensburg and the community as a whole as it would retain customers that are currently leaving the community to shop in Yakima, metro Seattle, or Wenatchee. 17 2.3.4 Downtown Retail Market Opportunhim The opportunities below are more ideally suited for a downtown location. That is not to say that both suburban growth and downtown growth cannot co -exist — as already mentioned, strengthening the overall retail market for Ellensburg should be a "rising tide lifts all ships" proposition. The are presenter) here because they have the opportunity to be particularly successful downtown. • Restaurants — This category is very strong and is likely to continue to thrive in the community. There are opportunities for growth both within downtown Ellensburg and throughout the city. Restaurants are a "clustering" business type where more begets more. This is particularly true when a community attracts visitors as Ellensburg does. This does not mean that every restaurant will be successful and will require deft market research with any new restaurateur. The market data shows leakage overall for Ellensburg of $21 million but an overall gain for restaurants of ,just under $6 million. The greater region is grossly underserved by restaurants. A quick look at Yakima shows that at a twenty minute drive from the intersection of Front Street and Yakima Avenue shows the market has a gain of $167 million in overall retail sales yet maintains a restaurant leakage of $69.6 million. Comments that residents of Yakima come to Ellensburg to dine are verified by this number. The opportunity is amplified when you look at spending patterns for students, Ellensburg's highway location, and the conservative definition of the trade area. • Office Supply Stores — This would have been an obvious powerhouse opportunity for a suburban store in Ellensburg. This retail store type has been in a state of national flux as big box office retailers have scaled back stares as a result of online shopping. however, the data indicates that possibilities exist in this category both with what would now be a "small box!" store in outlying areas of Ellensburg or working with existing specialized office stores in the downtown to expand services and product lines. • Clothing Stores — This store type, which include family clothing noted above, severely leaks sales in Ellensburg. This type of leakage is to be expected in a market the size of Ellensburg but does present opportunities both for specialty retail in downtown and also in suburban locations. Clothing opportunities in downtown Ellensburg are going to cluster around young women, and the community should take a dual strategy of working with existing clothiers and recruiting new specialty clothing stores. However, the Family Clothing category represents an opportunity for a small box store such as TJ Maxx to possibly be supported in suburban Ellensburg. As already mentioned, this would not eliminate the chance to grow specialty clothing in the core of downtown. (Shoes — a subcategory of clothes also represents a market opportunity for downtown or to expand the product line of an existing store). Miscellaneous Retail — This broad and inclusive category is geared toward the highly niche - oriented retail that tends to cluster in a downtown setting. Specialty retail will continue to be an opportunity in downtown Ellensburg and is highly suited for the district specifically. Some specialty retail seen in other communities are oil and vinegar stores, running stores, nock and mineral stores (already present), niche gifts, fmternitylsorority stores in college towns, and many more. 18 Overall, this study looks at a very conservative capture scenario for leaking retail sales in several ways: • Only counting existing leakage in both trade areas and presuming no population growth in the primary trade area (which will continue to grow); Only counting local and regional population — not visitors (who comprise over Me of the customer base), Using a 20% capture rate used, leaving 80% of market leakage to continue to leak elsewhere; • Using a very conservative $200 per square foot estimated sales across all retail categories. The supportable square footage under this scenario is 95,000 square feet of total retail in the overall trade area. Suburban developers are likely to use more aggressive ntmibers, leaving anyone looking at downtown to focus on roughly a third of this number. Even still, this could support significant expansion of the downtown's retail footprint by simply "freezing the demand" in current time. 23.5 Key Homing Market Opportunities Unlike retail market analysis, housing markets are much less precise to understatid. Using the projections for the primary trade area for population and household growth it can be assumed that the Ellensburg market will add 120 additional housing units per year in Ellensburg or 600 by 2020. Building permit dam reported through the City of Ellensburg corroborates this number with the average of 55 new units (conservative estimate) coming online each year. National trends in housing indicate increasing interest in downtown Iiving both with millennials and empty nesters. With Ellensburg's young average age of 30 and large proportion of college students, there is a potential market for alternative kinds of housing such as lofts, condos and apartments. A simply allocation model that captures only 501/6 of the demand for future housing in the market would yield 150 new units that do not conform to the traditional single-family house. This estimate for additional downtown housing is a bit more aggressive than the retail assessment but the national trends point toward growth in this area and new product coming on line corroborates these national trends. More detail as to the location of this housing is shown in the plans below but they will generally cluster in upper floor units in the core of downtown and in new mixed-use development between downtown and Central Washington University. 23.6 Hotel.Market Opportunities Ellensburg is home to ten hotel properties with a total of 682 hotel rooms. The occupancy rate across all of these properties is 58%, which is slightly lower than the national standard of 62%. It is important to note, however, that this occupancy rate accounts for some ageing properties within the city limits of Ellensburg and that new properties experience higher occupancy. The same is true for the average daily room tate in Ellensburg, which stands at $87 per night and is lower than the national average daily room rate at $104 per night. Again, ageing properties can account for this figure. More importantly, Ellensburg has experienced an increase in average daily rates, revenue per available room, and occupancy rates. The Kittitas County Tourism 19 Director along with the Lodging Tax Advisory Committee tracks Lodging Tax revenues. Revenues have increased every year but one since the recession, which adversely affected rates in 2009. So far in 2015, monthly Lodging Tax revenues have increased every month but one and, barring any unforeseen circumstances, 2015 will represent a record year in Lodging Tax collection. This is a positive trend that is likely to continue and points to increasing demand placing positive upward pressure on the local hotel market. National trends in hotel and visitor stays point to continued interest in alternative forms of lodging, including smaller boutique inns, self-catering inns, and specialty lodging that are close to tourist attractions and are within walking distance of the area's key restaurant and dining options. National hotel chains are paying attention to this trend and have responded with creative brands such as Hotel Indigo by IHG, Canopy and Curio by Hilton, and Aloft by Westin to address this demand. Furthermore, this trend is migrating from bigger city markets to smaller communities where both independent hotels and chain affiliated hotels are being developed in downtowns even while other hotel products in the markets continue to thrive. 2.3.7 Of we Market Opportunitiies Perhaps the most difficult market to evaluate in a community nice Ellensburg is the office market. There is little speculative office space in the market and as a consequence there is no historic absorption rates, consistent rent rates, and vacancy rates. The issue is exacerbated in downtown where upper floors that might be conducive to office space are in various states of repair. During the interview process, the price of $10 per square foot a year was cited as reasonable for space that was already suitable for a tenant. This rate hovers just at a Ievel where buildings owners have difficulty maintaining old buildings for the rent trey are commanding. Ideally, the market should work, to slowly get the rental rates from $10 per square foot to $12 per square foot. An effective way to do this is to develop "right -sized" ground floor spaces that work for smaller specialty shops. The recommendations portion of this report will explore some creative solutions to jump start office space use in downtown Ellensburg and work toward slowly escalating rent returns to allow for additional investment in downtown buildings. 20 2.4 Overall Market Observations and Conclusions The following conclusions are based on the market evaluation above. These conclusions also underpin the recommendations that will follow in Chapter Three. Ellensburg has made significarit investments in both downtown and tourism reach and the success of downtown is reflected in the breadth and depth of the customer base. • Central Washington University and downtown Ellensburg are inextricably linked, and the community should explore ways possible to continue to reinforce and grow those connections. • Growth will continue in Ellensburg. This is inevitable. The market data indicates potential for both suburban and downtown growth to coincide. The days of downtowns and suburban locations "competing" for the customer dollar are over. If Ellensburg can retain a customer in town who might travel to another market, it will be a much easier task to get that shopper loyal to downtown. Smart suburban retail development generally will not negatively impact downtown. Housing is going to play a major role in the future of downtown Ellensburg. The trends all point to ongoing success with downtown housing that not only caters to students, but also to empty nesters and young professionals. The empirical data points to increasing room rates, occupancy, and revenues that indicate strong potential for a hotel/inn that would serve as a complement (not competition) with existing hotels in the community. To avoid being competitive with existing properties this hotel should be located in downtown Ellensburg. Concepts for this are shown in a fat" section of this report Ellensburg has a distinct opportunity to "curate" the growth of the community and to expand the footprint of its downtown to better connect the dots between attractions. This will be explored later in the report. 21 3. o Physical Assessment 3.1 Background In addition to the market assesment, this project engaged in a physical assessment of downtown Ellensburg to evaluate how it is performing, ways in which it can improve, and how it can continue to serve both locals and visitors as evidenced in the market study. The following maps provide insight into the composition of downtown currently and set the stage for recommendations that will follow. 3.2 Existing Conditions Downtown Ellensburg is a Certified Main Street Community by the Washington and National Main Street Programs. The boundary of downtown's official designation is 6d' Avenue to the north, Ruby Street to the east, 2" d Avenue to the south, and Water Street to the west. Figure 5 on the following page shows this boundary. The "heart" of downtown could be the subject of debate but is generally accepted to be the Intemetion of Fourth Avenue and Pearl Street. It is the home to the Rotary Pavilion which is the center point for many downtown events and is bounded by some of the most distinctive architecture in downtown. A core of strong shopping and dining options extend one to three blocks in every direction from this point. Figure 6 shows downtown Ellensburg with amenities, attractions, and educational institutions. These would include Morgan Middle School just outside of the core boundary to the south and Central Washington University and its associated open spaces to the north of the downtown boundary. Within the boundary are four city -owned parking lots, Rotary Pavilion, Rotary Plaza, the Library, Friendship Park, a skate park, and a community garden. The core area is also the home to the Ellensburg Farmers Market, which occurs on the East Fourth Avenue. Figure 7 goes further to show recent investment in downtown Ellensburg and its immediate surroundings. This is a critical exhibit in that it reflects on the dynamic nature of downtown and is not designed to be comprehensive in nature. Investment in downtown is occurring in nearly every part of the district and adjacent areas. Central Washington University is also actively pursuing projects that will reinforce its presence on the south side of University Way. In the center of town, the Goddis Building, mentioned in the introduction of this report, is actively becoming full of storefront tenants. The Elks Building is under renovation into a mixed- use development, Patricia Place apartments (36 units) were completed and are 100% occupied, showing market demand for additional housing. New restaurants have opened, upper floor residential development has been completed, and other renovations are underway. This is a clear sign that downtown Ellensburg is enjoying significant investment, that Central Washington University is growing in a direction that places key locations like a potential visitor center for the campus closer to downtown, and that interest continues in the future success of the community. The goal of the recommendations that follow is to illustrate the kinds of investments that are possible, explore ways to make the visitor experience more vibrant, and continue to invest in downtown. 22 f't e ■ ��I�U11�yE��l M'��IA�Yi IV now Xlwk'-4A ME w- r ti 4.0 Recommendations The recommendations in this chapter are divided into four key strategies important for the future success of downtown Ellensburg: • Reinforcing the Center: This strategy is designed to focus on the core of downtown Ellensburg by providing enhanced gathering places and gateways to the community in the public realm and additional development opportunities in vacant ground floor and, more importantly, upper floor spaces. • Expanding Success: This strategy recognizes that the care of Ellensburg is highly developed, and there is great potential to expand the footprint of downtown to include blocks that would connect downtown to major development opportunity sites. Connecting the Community: This strategy focuses on multiple modes of transportation that allow locals and visitors to use downtown Ellensburg by car, bike, on foot, or by public transit. It also continues to reinforce the importance of connections between downtown and existing hotels and between Central Washington University and downtown. Enhancing the Visitor Experience: This strategy recognizes that tourism and visitor traffic are critical to the success of Ellensburg. Recommendations here focus on having a curated visitor experience and on the potential for a new hotel and meeting space in downtown Ellensburg. 4.1 Reinforcing the Center 4.1.1 Implement Ellensburg Town Square as a garheringplaca Sigh Priority. Perhaps the most significant public improvement shown on the plan is to create a true Ellensburg town square adjacent to the Rotary Pavilion. Figure 8 below shows some examples of similar spaces in other places and the plan in Figure 9 shows that the Ellensburg Town Square would retain parking on some of the space, make better use of parking on adjacent blocks, and replace existing parking with a green lawn panel and a small splash pad that can be used as the central gathering place for the community. This space could include restrooms relocated from Yd and Main as well as the downtown visitor's center. Figure 8: Green gathering spaces 26 4.L2 Continue to pursue and promote uppe''Ioor mixed-use devdopmepa Huh Priority. The private sector opportunities are shown in three categories in Figure 9 on the following page: complete, in progress, and opportunity sites&WId ngs. There are nine opportunity buildings and one opportunity site and each is further explored either explicitly or more generally depending on the nature of the building or site. Ellensburg should consider an open house "live downtown" event to promote downtown residential development opportunities. The evew should be an open house of existing residential units in downtown to show both potential residents and developers the potential for additional living in the community. Many people simply haven't experienced what downtown living can be like. Some communities have even done "mock" upper floor housing with furnishings from local decorators to showcase what downtown living could be like in a particular building. 4.L3 Work to build Effmh rg Gateway at corner of Main and 7Abd Medimn Priority. Currently the comer of 3'd Avenue and Main Street is an existing parking lot paved with concrete pavers. Figure 9 shows that the same number of parldng spaces can be moved to be on street parking, opening up the area for outdoor dining and an attractive downtown gateway sign at the northeast comer of the intersection. The restrooms at the southwest corner of the intersection should be relocated to the center of town as outlined in recommendation 4. 1.1 above. 27 t9 O n 0 5$s C f1 � 4.1.4 Implement co -working space find pofthd makers *am Co -working spaces have moved from what some might consider a fad into a full-blown national trend with over 80% growth in available spaces during the past two years. According to the Commercial, Real Estate Development Association report: Between 2005 and 2014 the number of co-worldng spaces has gone from I to 781. Deskmag monitors co -working spaces nationally and cites that 60% of existing co -working spaces will expand in 2015, 4.5 new co -working spaces are created each day, and 245 people become members globally each day. Ellensburg has multiple opportunities to capitalize on this growth while building on partnerships within the Chamber of Commerce, with Central Washington University, and even with the creative community that thrives in Ellensburg and Kittitas County. Before delving into the specific recommendations, it is important to begin to define how each of these spaces work, as semantics can sometimes get in the way of truly understanding the purpose of these new models for the workplace environment. It is also important to know that, although their definitions are provided below, the fluidity within which they can function in a space is as creative as the very ideas themselves. Co -working spaces provide a place for individuals or small companies to work in a shared environment. Companies can interact with one another in informal ways, form collaborations, or simply share in the creative atmosphere of the space. Co -working spaces may host events and activities, but rarely provide formal business coaching. Such spaces provide conferencing capabilities, shared printers, a kitchen, restrooms, and most importantly high speed internet access. Incubator spaces are also places where businesses co-habitate as well. A key difference between co-worldng and incubator spaces is the level of support provided to grow businesses. These spaces frequently have a higher education partner that is helping to cultivate and coach businesses toward success. Many incubators have the desire to "graduate" businesses from the space. There is already an incubator space in Ellensburg, so this approach may not be the most appropriate for downtown, although the trend is continuing to evolve into other kinds of incubators. Accelerator spaces provide a structured way to "graduate" companies, often within a specified period of time. Usually, accelerator spaces receive significant support fi-om venture capital that is directly investing in the start-ups. The goals of an accelerator is to "spin out' successful ventures. These spaces tend to gravitate around like businesses that have collaborative capabilities. Makerspaces are physical locations where people gather to share resources and knowledge. Unlike the spaces described above, makerspaces focus on projects and fabrication. Consequently, makerspaces provide tools and facilities for the makers. While experts or higher education - affiliated advisors might be available, makers frequently get help from other users. These spaces began to be associated with fields such as engineering, fabrication, computer science, and graphic design. Many makerspaces have higher education partnerships who desire to create an 29 informal combination of lab, shop, and conference room. Frequently, 3-D printers, manual tools, and classroom spaces are associated with makerspaces. Such spaces take very little upfit to make them function, but the key would be flexible space for many office type configurations and excellent internet access. The Kittitas County Chamber of Commerce is currently working on one co -working space on N. Pearl Street in the old Red Cross office building. Ultimately, multiple spaces could be developed that could take on multiple partnerships and even focus on particular professional collaborations (such as artists studios or architectural and engineering offices) so the community should be prepared to engage in a discussion with others on the endeavor. The goal is to have flexible spaces to cultivate entrepreneurial growth in the heart of downtown Ellensburg. 4.1,5 Continue ongoing recruitment and rdention of retail The retail analysis clearly indicates that there is sufficient demand for additional specialty retail and the expansion of existing retail in Ellensburg. The community should consider subdividing spaces for a "small store" concept. Pascagoula, Mississippi used seventeen prefabricated "Katrina Cottages" as a retail accelerator. Over 30 applicants applied for the spaces, and, after five years of operation, four original tenants have moved on to larger spaces in the downtown. From a recruitment standpoint, the best prospects are 1. Expansion of existing stores; 2. Specialty stores in neighboring communities looking for expansion opportunities in Ellensburg; 3. People who may have relocated to Ellensburg with retail experience. The Kittitas County Chamber of Commerce sponsors a business pian competition in conjunction with Yakima, which could be expanded and targeted to retail/restaurant use in downtown Ellensburg. Central Washington University may consider partnering with the Ellensburg Downtown Association and the Chamber of Commerce for such an expanded business plan 4,1.6 Explore realignment offarnwrs' market Ellensburg should explore the prospect of realigning dw farmer's market to the market vendors (face out toward the street. By doing this, emergency equipment can get by and also allows the market to reinforce existing retailers. This could be launched on an experimental basis to see which configuration works best. 30 4.2 Expanding Success 4.2.1 Begin to look at downtown as a broader City Center Figure 9 on the following page illustrates opportunity sites in a much broader context than the downtown core plan shown in Figure 8. The sites are divided into sixteen sites labeled as Level I opportunity sites and ten sites labeled as Level 2 opportunity sites. The levels are to provide some idea as to which sites are more likely to develop in the shorter versus longer term. it in no way implies that a Level 2 opportunity might not rise up to be a very early development project. The sites are also marked as to whether they are vacant land or Iots, are underutilized properties where the existing use may not be consistent with a denser and developed downtown, or are properties where the ground floor may be occupied and the upper floor is vacant. When examined as a whole, downtown Ellensburg can be viewed to extend to University Way to the north and across Water Smear to the west. The City should adjust the zoning for portions of Water Street to expand the downtown core. 4 22 Parbter with exfis ft and new inveswrs an undera tied sites idmi fled by priority in the plan. The single best way to explore redevelopment of underutilized sites and buildings is to communicate with property owners. Many owners simply do not know that their properties have a higher or better use or may not know where to begin on considering renovation, while others may have no interest whatsoever in pursuing investment at this time. The Downtowners can continue to meet and work with property owners on a case-by-case basis by answering questions, contemplating partnerships, and oMring incentives to advance redevelopment. Some communities have contemplated creating incentives that treat downtown buildings as a community would any other itftxstructure opportunity. in so doing, communities have implemented ADA grant programs to bring buildings up to code, created sbared sprinkler systems that allow for a number of buildings to enjoy the benefit of this fire suppression code compliance or installed shared elevator space for upper floors funded through public or quasi - public entities. Some uses may be ideally suited for property trades so that higher and better uses can come into downtown Ellensburg. Many of these opportunities are referring to property trades along Water Street where tyre are uses that should be off the street and in industrial areas of Ellensburg. The Kittitas Reclamation District, the food bank, and storage lots would probably benefit from locations that are more efficient. 31 W N 4 2 3 Host wr lnvestnmi forumm in the nom munity. The Downtowners should collaborate to conduct an investment forum in the community for potential investors. This forum can provide potential business owners with a profile of the market in EIlensburg, available properties in the community, guidance on support services available to potential businesses through a variety of partners. The event should last no longer than two hours, oiler refreshments, and give a brief overview of the following: Representatives of the Downtowners should present Endings of this market study and recommendations. City staff can share the support services that the City of Ellensburg can provide. • Ellensburg Downtown Association can discuss its program of work and assistance. • Private Sector Property Owners/Commercial Real Estate Representatives should provide an overview of the space available in Ellensburg, a brief synopsis of leasing basics, and if poss<'ble, any incentives they have to promote local business. • The, Kittitss County Chamber of Commerce and the Ellensburg Business Development Authority can provide information on the overall economy of the county, services provided by each group, and resources for business stark ups. The Small Business Development Center and/or a SCORE Association chapter should provide information on business plan support, start-up assistance, and additional services they provide. Ideally, the organizations should promote a follow-up consultation day in Ellensburg so attendees can sign up for appointments. Existing businesses should provide an overview of their personal experiences doing business in downtown Ellensburg (with a focus on the positives and helpful hints). The Downtowners should leverage these partners to help promote the event. The goal is to reach out to anyone interested in investing or starting a business in Ellensburg. 4.24 Chnee arm lnv+esdmAt "club"forEMemburg Ellensburg should also explore a funding program that could incorporate a modest return an investment for participating in an investment club for buildings and sites in the community. The JOBS Act, signed into law by President Obama, requires that the SEC create some parameters for this type of investing. The SEC has just released those parameters. There is also nothing to preclude local investors to create a more traditional investment program or a property renovation company with the expectation that there will be a return on investment to the partners. In some cases these operate independently of the city an in others there is a partnership structure to implement a plan such as this. It is important to understand that this funding recommendation is designed bo augment existing funding options that vary firnn traditional bank financing to state and federal tax credits. Any investment fund is best used to leverage other financial tools available for a project. 33 4.2 3 Cultivate ongoing partnership for "Signature Street- along University Way to emphasize Central Washington Urvivoersi( . Significant redevelopment is expected over the next five years along University Way between Main Street and Chestnut Street. Central Washington University has already constructed very attractive signs along the corridor. Over time, the City of Ellensburg should contemplate an ongoing partnership with Central Washington University to create a strong streetscape along the road and reinforce the intersection of Main and University Way as a gateway to downtown. 4.2.6 Consider community center in the city center. The YMCA was once a major attractor in downtown Ellensburg for recreation and activities, which have now moved elsewhere in the city. Ellensburg should explore the long term possibility of a multi -use community center in the core of the community. Downtowns are always the best location far community centers for several reasons. These centers create economic spin off of having activities in an area where people can 1. walk to the location, 2. spend money in the area afterward, 3. share parking resources, and 4. serve as an attractor for additional investment. Several of the vacant or underutilized sites identified in Figure 10 would be ideally suited for a community center that could host meetings, events, the arts, and other uses. This type of project will require a cooperative effort and should be flexible enough to handle a variety of uses. 4.2.7 Consider an employer -assisted horsing fiend Employer -assisted housing programs provide incentives for employees to live within designated places near their place of employment. There are many benefits to such a program including reducing commute threes, pollution, and stress; increasing employees' loyalty to the locale where they work; and providing a sustainable program to ensure that housing stays stable in a local market. Typically, large employers such as universities, hospitals, and governments create these funds to foster investment in the community they call home. Often times these incentives are as simple as a small down payment assistance program in a targeted area, reduced fees in a highly targeted area, or a suite of benefits through a public- private partnership. This program could continue to keep neighborhoods between downtown and Central Washington University stable, as well as encourage investment in more housing downtown and more upper floor conversion. 34 4,3 Connecting the Community 4.3.1 Klement creadvie place -making Creative place -making works with community members to bring together arts and culture in ways that connect physical space to needs in the community. The goal of this effort would be to foster bmoader exploration of downtown by visitors while showcasing the talent of a local artist. Ellensburg should explore working with an organization lake the nonprofit pomegranate Center based in Seattle that explores creative place -making in communities as a partnership effort. Creative place -making projects could be incorporated into the town center as well as create physical connections between CWU and downtown Ellensburg. Today, key st*cholders are working on an exciting program to connect through a public at program to create "markets" that will be located in a variety of locations to explore between downtown and campus. The concept, dubbed "Project Brilliance," will implement reflector art pieces from the late Dick Elliott, a renowned local artist to be placed in strategic locations throughout downtown Ellensburg to ultimately connect the Old Heat Plant, slated to become a visitor's center for Central Washington University, with the core of downtown. Figure 11 on the following page illustrates the potential locations for these installations on key corners throughout the larger downtown area. 4.3.2 Coritintae partree SKIP with Central Wa kiiegtan Uxivieralty to bring inwstnient Into the core of downtowx ovrr time whether through programa or capital project Central Washington University is a strong partner with the Ellensburg community, and its students represent a significant portion of the customer base in downtown. Over time, the University and the Downtowners should seek partnership efforts that may bring programs or even capital projects into the downtown. Some of the ideas expressed in other recommendations of this report could be potential partnership projects. 4.3.3 Klement bicycle friendly streeis as idenufled lnprior plans: Ellensburg has worked on bicycle friendly streets and the downtown is very navigable by bicycle. The community should continue to implement these important recommendations and will implement new bicycle racks that have been designed in similar style to existing quality downtown street furniture. 4.3.4 Implement circulator traYpor&denn from CWU through downtown to Hotels. Central Transit already operates a fixed mute system in Ellensburg. Over time, the possibility of a circulator that connects the local hotels through downtown and onto Central Washington's campus would be an excellent way of creating a regular service for visitors to the community. The potential route is shown in Figure l l below. 35 �^^T-- ---- ----'•�`'R4�r� Mjr 1 + . r�•:j Pia.r^-[ r - 's.SFraaas�a��Fart."fir�fr y ri b � � +• 6 �ffi i�.r'a.r �rfC YM� if1Mi� me NOW Yds, r}'�. '- h� �F !+►,#�i,��F AV*,, ft . 16 IL k 1 . } 1. .. e � »a,► "r, -rJ: ✓a'°rr,Y'.:: ins-. as * �S<K� 0 �^^T-- ---- ----'•�`'R4�r� Mjr 1 + . r�•:j Pia.r^-[ r - 's.SFraaas�a��Fart."fir�fr y ri �ffi i�.r'a.r �rfC YM� if1Mi� me NOW Yds, r}'�. '- h� �F !+►,#�i,��F AV*,, ft . k 1 . } 1. .. e � »a,► "r, -rJ: ✓a'°rr,Y'.:: ins-. as * �S<K� 4.4 Enhancing the visitor Experience 4.4.1 1tdacate Wskars' anter to the core of dowrrtowrr. Ellensburg should explore the possibility of a visitors' center in downtown. The Wells Fargo Drive Thru could be an ideal location for such a facility as it is in the heart of the community, offers "storefront" convenience, and could also provide public restrooms in the center of downtown, 4.4.2 -To%W Kerdt thororgh wayfindirrg sighs. In the most general sense, wayfinding is the process by which we navigate the world. Whether it is our daily commute or a journey to an unexplored locale, we rely on cues, habits, patterns, landmarks, and verbal and visual directions to establish and confirm a working knowledge of our environment. A community wayfmding system tabes these cues and creates a seamless system of signs, kiosks, and markers designed to guide visitors to destinations, remind residents of local offerings, facilitate community engagement, and achieve comrnuatity-specific goals. A wayfinding system typically features various sign types including gateway signage, directional signage, parking signage, pedestrian signage, as well as maps and information guides. A typical wayfinding system utilizes a community's marketing brand graphics and includes gateways, vehicular and pedestrian directional signage, street banners, district and parking signs, building markers, and informational kion. Ellensburg has some dated wayfinding signs that are difficult for the motorist to read and reflect older graphics for the community. Furthermore, these signs only begin to appear once a visitor is already in downtown. It is imperative that Ellensburg implement a complete wayfinding plan along with a phased implementation plan to curate the visitor experience through downtown. Examples of wayfinding fror 1 anomer commuru are atiown below In Figure 12. Figure 12: Exande of Wayfinding Plan from Greenwoo,4 SC 37 4,4.3 Implement and continue to modify Parking resources andprocedum- Mentioned in the physical analysis, the study area boundary contains four city -owned parking lots generally well placed throughout the downtown core. Additionally, on -street parking has, been mostly converted to angle parking with a variety of times to accommodate the variety of uses (loading zones, more lengthy parking options on the outlying areas, etc.) Some best practices on public parking should explored. Ellensburg should conduct a "light, parking study to examine existing public and private inventory as well as on and off street parking. The study should also explore peak times for parking. Typically, the outcome of such a study presents tactics such as better signage, ongoing management of spaces, ensuring that close in spaces come at a time premium, and directing long-term visitors and employees to outlying lots. One option for Ellensburg to consider would be to implement back in angled parking on a block in downtown as a pilot project. This type of parking provides several advantages over traditional parallel or angled. parking. First, cars have much more visibility moving out of a space when they have backed in (and the movement into the space is easier than parallel parking), second the doors to the car open to the sidewalk rather than the street making it safer for parents with children, and the rear of the car is to the sidewalk allowing for easier loading for any shopping. Two potential opportunities for expanded parking exist on both the Skate Park lot (should it move) and on the Old Creamery lot as discussed in section 4.4.4 below. Many communities have found than an annual parking summit allows policies to be tweaked and issues resolved as parking is an ever changing dynamic in downtowns. 4.4.4 Pursue a downtown boutique hotel with meeting space and parking As mentioned in the market analysis portion of this study, there is a potential market for a unique hotel product in downtown Ellensburg. After evaluating several properties, the ofd Ellensburg Hotel in the Shoudy-Cadwell Building at the corner of V Avenue and Main Street appears to be the strongest opportunity for several reasons. First, the location is highly visible which will be important for any downtown hotel. Second, while the hotel will need to be modernized and upgraded significantly, it has traditionally been a hotel. Third, its location provides visitors easy access to all of downtown Ellensburg. Last, the hotel has the potential for adjacent meeting space and parking. Figure 13 illustrates the potential for the project. The hotel could be located in the existing building with ground floor retail remaining in place. A potential joint use elevator tower could be constructed to the rear of the property for ADA compliance. Parking for the hotel should be located on the `old creamery' site preserving the Art Deco !made of the burned out building. Plan estimates show potential for 70 parking spots on this site which is less than a block from the hotel itself. The City of Ellensburg will need to be the partner to complete this parlang resource reserving room for expanded parking through an "over/under" ramp in the future. Rough estimates show that the hotel could probably accommodate 40-50 rooms depending on how it is configured. It is likely that the hotel's operation would be independent of a chain affiliation, though many national chains are exploring specialty branded boutique hotels. Many 38 travelers are finding that hotels with character located near restaurants and shops are more appealing than standard hotels. The community should also explore some creative meeting space that would accompany the hotel. This could be part of the community center mentioned in a prior recommendation or a stand alone creatively adapted facility. Ideally, the meeting facility would be able to accommodate more guests than the hotel itself to drive tttiaffic to other accommodations in the community. Figure 13 shows several options for such a facility in the vicinity. 39 4k Cb 5.0 Conclusion In order for this pian to be successful, it must have specific responsibilities and a consensus as to how those responsibilities will be implemented. Several points should be considered; • The Downtowners will ultimately play a critical role in the implementation of the plan. Its primary role will be as a facilitator between the representative partners involved in this plan that comprise the group. • This plan is very forward thinking and no one agency can carry the workload by itself. This should include very specific actions strategies and realistic timeframes. An opportunity must be made to pair attainable goals with responsible parties while also identifying funding strategies for each task. • A Downtowners "summit" should be held every year to evaluate the progress of this effort and share it with partner stakeholders and the public. The attached "Strategy Board" summarizes all of the projects and recommendations included in the Market Study and Strategic Plan for Downtown Ellensburg. The board is designed as a working document for benchmarking and ongoing evaluation of the implementation process. Each recommendation that is pcesenWd in brief on the strategy board is supported in recommendations above. ILI Strategies and Visions Each of the plan strategies and visions are outlined in the strategy board. It is important to remember the ultimate marketing and development strategies that each project supports. Of course, each of these strategies is linked with one another, but failure to achieve any one goal does not negate the ability to achieve others. S.L2 T"eme Frames The projects arc divided into three periods. The first series of projects are demonstration projects that should begin immediately. For the most part, these are simple projects that will be highly visible, have significant impact and should be completed within the first year after the plan is adopted. The second set of projects is labeled "next steps:' Some of these are more advanced projects while others are continuations of projects that began during the demonstration period. The next step projects should be completed within the second and third year of the plan. The final steps are long term and forward thinking. They may evolve into shorter term projects as opportunities present themselves. The strategy board and its recommendations represent a "living document:" As time goes by and implementation proceeds, some priorities will shift while other ones will arise. The implementation strategy board should be evaluated periodically and no less than annually. This evaluation process will allow for finished tasks to be indicated on the board, for responsibilities to be shifted between parties, and for time frames to be adjusted for individual projects. Ellensburg has a tremendous track record of innovation and success. The ongoing commercial success will depend on continued partnerships among many different groups. It is only through this continued spirit of partnership and commitment to a vision that the recommendations in this study can be successful. Fortunately, Ellensburg is poised to succeed in these efforts as it has in so many others. 41 42 t