HomeMy WebLinkAboutTRACKS 7 Economic Development 2025_0423 AmandaCJefferson County Comprehensive Plan 7–1 Public Review Draft June 2025
7 Economic
Development
Jefferson County enjoys an enviable quality of life, and
outstanding scenic, recreational, and ecological resources. In
addition, it enjoys proximity to urban areas in the Puget Sound
region, and a growing popularity as a tourist destination. The
rural, resource-based history is evident in the county's numerous
and vast areas of commercial forestlands, farms, and gravel
mines. This somewhat isolated setting, paired with the large
amount of state and federal lands in the county, can create
challenges for economic development. However, maintaining
and enhancing quality of life is a key aspect of the county’s
economic development strategy, as well as providing resiliency
within various possible economic futures.
Accessibility to all areas of Jefferson County is quite limited. Only
four state highways provide vehicular access. State ferries
provide access at the City of Port Townsend at the county's
northern-most point. Jefferson County is more geographically
isolated than counties elsewhere in the Puget Sound, creating a
unique and challenging business and economic development
setting. The North Olympic Development Council reported that
This element supports the
Vision Statement by promoting
job retention and job growth to maintain and enhance quality
of life for existing and future
residents. Priorities leverage the
resource-based, tourist-based,
and location-based economies,
promote the port and other
assets, and incorporate
additional innovative and
entrepreneurial economic
development. Economic
Development Element
concepts are directly linked
with goals and policies in other
elements that seek to empower adequate and affordable
housing, supportive land use
and development codes, and
safe and sufficient infrastructure.
Connection to
the Vision Statement
Left: Jefferson County, Right: Carolyn Gallaway
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–2 Public Review Draft June 2025
the natural abundance of the region has not translated into prosperity
for its residents nor jurisdictions.1
With over two-thirds of the county in public ownership and unavailable
for direct economic development activities, Jefferson County may
appear to have limited economic development opportunities. However,
within a changing economy, the county can capitalize on opportunities
including the possibility to use its natural abundance as an asset and
transcend the perceived development limitations of the land.
Natural and social qualities drive Jefferson County prosperity and are
key elements to develop and strengthen the economic development
strategy. For example, Olympic National Park, occupies most of
Jefferson County's center and is one of the top ten most-visited
national parks in the US with most of those visitors traveling first
through Jefferson County to enjoy the park's spectacular scenery and
outdoor recreation opportunities. Tourism development strategies that
increase Jefferson County’s ability to attract and serve these travelers
can be a way to turn these challenges into opportunities.
1 NODC, 2016.
Jefferson County finds that it is important to create a future that allows our communities to thrive and prosper as
we maintain our rural character. This includes strategies that allow our communities to develop not only
resource-based economies, but provide the balance and flexibility to provide for new emerging economies. The
Growth Management Act makes the following findings regarding Rural Lands and a Rural Economy (RCW
36.70A.011):
“Rural lands and rural-based economies enhance the economic desirability of the state, help to preserve traditional economic activities, and contribute to the state's overall quality of life.
The legislature finds that to retain and enhance the job base in rural areas, rural counties must have flexibility
to create opportunities for business development. Further, the legislature finds that rural counties must have the flexibility to retain existing businesses and allow them to expand. The legislature recognizes that not all
business developments in rural counties require an urban level of services; and that many businesses in rural
areas fit within the definition of rural character identified by the local planning unit.
Finally, the legislature finds that in defining its rural element under RCW 36.70A.070(5), a county should foster
land use patterns and develop a local vision of rural character that will: Help preserve rural-based economies and traditional rural lifestyles; encourage the economic prosperity of rural residents; foster opportunities for small-scale, rural-based employment and self-employment; permit the operation of rural-based agricultural,
commercial, recreational, and tourist businesses that are consistent with existing and planned land use
patterns; be compatible with the use of the land by wildlife and for fish and wildlife habitat; foster the private stewardship of the land and preservation of open space; and enhance the rural sense of community and quality of life.”
Flexibility in Implementing GMA in a Rural Economy
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–3 Public Review Draft June 2025
The local Jefferson County economy is currently dominated by
industrial, agricultural, and natural resource activities, along with the
attendant governmental and health services provided to the
community. The Growth Management Act provides jurisdictions with
opportunities to plan Industrial Land Banks as a planned reserve area
for a future industrial site, as well as provisions for planning Major
Industrial Developments. Additional detail can be found in the Land
Use Element.
Still present are the historical industries of forestry and lumber
production, and maritime trades such as seafood processing, ship
repair and boatbuilding. Agricultural activities include aquaculture,
organic farming, and food production. These industries are productive
in their own right, and can also create and sustain their own type of
diversified, experiential tourism activities.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–4 Public Review Draft June 2025
7.1 PURPOSE
The purpose of the Economic
Development element is to establish “local
goals, policies, objectives, and provisions
for economic growth and vitality and a
high quality of life.”2
A strong, stable, diversified, and resilient
economy provides a high quality of life for
the citizens residents of Jefferson County
and the region. The economy generates
resources necessary for the well-being of
families and individuals and the resources
through which local governments provide
for the health, safety, and welfare of its
citizenscommunity members.
2 RCW 36.70A.070(7).
In Jefferson County, our citizensresidents, communities, neighborhoods, and businesses share a unique sense of local identity and purpose. We care about each other and
this community, and recognize our responsibility for the long-term well-being of this place we call “home”. As active participants in the life of our community, we are willing to make choices today that will help to shape our
future, rather than merely allowing the future to shape us. We recognize that key public investments today will help us to improve and maintain our long-term economic health.
Our future economic vitality rests primarily with the private sector, not the County, City and Port governments. Still, our local governments can play an important role in
contributing to a robust community. Government can
provide the “necessities” that enable individuals and businesses to achieve their potential—and they can also assist in preserving those aspects of our community’s
character and natural environment that makes this pace
unique.
Through this Strategy, the County, City and Port are focusing their efforts on three keys for our economic future:
1. Developing infrastructure that overcomes our isolation.
2. Fostering educational excellence.
3. Maintaining and enhancing our quality of life.
Source: Jefferson County, 2012.
Draft Joint Economic Development Strategy
Vision (JEDS, 2011)
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–5 Public Review Draft June 2025
7.2 TRENDS &
OPPORTUNITIES
Conditions & Trends
Employment & Labor ForceUnemployment Rate
The Washington State Employment Securities Department (ESD)
estimates there were an average 8,968 jobs in Jefferson County
throughout 2023.3 As discussed in the Housing Element, the median
age of Jefferson County residents is the highest of all county
populations in the state (60.7 years).4 A relatively larger proportion of
residents in the county are also aged 60 or over than statewide.
Reciprocally, there are proportionately fewer young residents in the
county compared to the state. This trend can be expected to affect the
economy in ways ranging from shifts in housing demand, retail sales,
labor force replacement and healthcare services demands. As seen in
the data on educational attainment, the county’s population is
comparatively highly educated, but a large proportion is retired and not
in the working population. Those aged 55 and older tend to dominate
the transportation services, information, educational services, health
care, and public administration jobs. Meanwhile, younger workers (age
14 to 24) are primarily in the hospitality industry, specifically
accommodation and food service.5
Jobs within the county are heavily concentrated near Port Townsend.
Clusters of employment are also concentrated in Irondale and Port
Hadlock, Chimacum, Port Ludlow, and Quilcene (Exhibit 7-1). In the
western part of the county, there is a concentration of workers west of
the Olympic National Park at the Olympic Corrections Center.
3 ESD Covered Employment Estimates, 2023.
4 OFM Median Age, 2022.
5 ESD Jefferson County Profile, 2020.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–6 Public Review Draft June 2025
Exhibit 7-1 Employment Concentration In Jefferson County (2021)
Source: US Census, OnTheMap, 2021.
Unemployment rates in the county have been higher than state figures
since the U.S. recession of 2007-2009. Though the recession officially
ended in 2009, the impacts of the recession extended into 2013 for
Jefferson County. Recent peaks of unemployment coincided with the
recession of 2007-2009 and then again during the Covid-19 pandemic
in 2020. The unemployment rate in the county has declined since the
pandemic, from a peak of 9.4% in 2020 to 6.5% in 2024. Jefferson’s
unemployment rate has remained consistently higher than the state
unemployment rate, which went from 8.5% to 5.1% over the same
period. See Exhibit 7-2 and the textbox below.
The phenomenon called Prime Age Employment Gap, high rates of
unemployment among persons between 25-55 was recoginized
nationally and the two county region including Jefferson, Clallam and
the five soverign tribes applied for funding from the Economic
Development Administration under a program called Recompete to
See Exhibit 7-2 and the textbox belowSince the U.S. recession of 2007-
2009, Jefferson County unemployment has been higher than State and
national figures; though officially the recession ended in 2009, impacts
of the recession extended into 2012 for Jefferson County. Recent peaks
of unemployment coincided with the recession of 2007-2009. The
Jefferson County unemployment rate has declined since then, from a
peak of 10.5% in 2011 to 7.3% in 2016. Jefferson’s unemployment rate has
remained consistently higher than the state unemployment rate, which
went from 9.3% to 5.4% over the same period.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–7 Public Review Draft June 2025
Exhibit 7-2 Unemployment Rate (1990–2024)—National, State, and Jefferson County
Note: This exhibit was updated with more recent data since the 2018 Comprehensive Plan.
Notes: Not seasonally adjusted.Historical resident labor force and employment, not seasonally adjusted; data
developed from Employment Security Department/WITS; U.S. Bureau of Labor Statistics, Local Area Unemployment
Statistics. Sources: ESD LAUS, Not Seasonally Adjusted Historical Estimates, 2024, 2017; BLS Unadjusted Unemployment Rate
(Series LNU04000000), 2024; BERK, 20242018.
Age
Jefferson County has the oldest median age of county populations in
the Stateof Washington. Further, Jefferson County has a relatively
larger proportion of residents aged sixty or over, than the country as a
whole or Washington State. Reciprocally, there are proportionately
Despite a general national recovery from the Great Recession, defined by the period of 2007-2009, rural areas
nationally had a slower and longer recovery period that stretched well into 2012 (Exhibit 7-2), with complete
recovery unlikely to happen in some communities at all. Unemployment rates in the county continued to
decline leading up to 2020 but spiked during at the onset of the Covid-19 pandemic.
COVID-19 had profound effects on the labor market in Jefferson County. From January 2020 to February 2022,
overall employment in Jefferson County decreased by 6%—in comparison, Mason County saw an employment decrease of 1% while neighboring Clallam County saw a 1% increase in employment in that same time period.
Nonfarm employment was less impacted by the pandemic, losing 10 jobs from 2020 to 2022 but about 500
jobs short of the 2019 total county count. However, the leisure and hospitality sector is still struggling to recover
from the Covid-19 shutdown. While it has regained jobs since 2020, it still lags pre-pandemic levels.
Sources: ESD Jefferson County Profile, last updated May 2022; Commerce Economic Recovery Dashboard, 2024.
Recovering from the Great Recession and the COVID-19 Pandemic
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–8 Public Review Draft June 2025
fewer young residents in Jefferson County compared to country as a
whole or Washington State.
This trend can be expected to affect the economy in ways ranging from
shifts in housing demand, retail sales, labor force replacement and
healthcare services demands. As seen in the data on educational
attainment (Exhibit 7-8), the County’s population is comparatively
highly educated, but a large proportion is retired and not in the
working population.
Exhibit 7-2 Population by Age
Source: ESD, 2017; BERK Consulting, 2018.
2006 2016
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80-84
85 +
500
561
626
609
623
592
640
674
702
826
965
1,275
1,570
1,822
1,418
906
591
534
478
543
610
571
576
501
569
613
636
816
1,077
1,454
1,810
1,930
1,410
892
567
604
541
623
776
763
594
530
564
700
901
1,073
1,250
1,368
1,246
1,112
828
655
447
278
527
629
745
719
491
480
570
687
913
1,195
1,386
1,510
1,331
1,069
800
639
463
444
Male
Female
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–9 Public Review Draft June 2025
Exhibit 7-3 Comparison of Population by Age, 2016, 2040
Source: ESD, 2017; BERK Consulting, 2018.
Economic Sectors & Major Employers
[Entire section moved above wages and taxable sales trends. Move not
tracked for simplicity. Additional revisions shown in tracks.]
The largest employers by sector in Jefferson County are government,
retail trade, and accommodation and food services. Together these
sectors make up approximately 50% of covered employment in the
county. Government employs more than one-quarter of the workforce
in Jefferson County, with local government as a primary employer.
Major employers in the county include Jefferson Healthcare, the Port
Townsend Paper Company, Chimacum School District, Life Care Center
of Port Townsend, the Olympic Corrections Center, and Jefferson
County. Jefferson Healthcare is the largest public employer in Jefferson
County.6
Overall trends show health care and social assistance employment
share in Jefferson County decreasing since 2008 while jobs in the
construction industry have increased over the past ten years (Exhibit
7-3). Regionally, Jefferson County is part of the Emerald Coast
Opportunity Zone (ECOZ), which is a collaboration of five Tribal Nations,
four cities, two counties (Clallam and Jefferson), and two port
authorities. ECOZ creates and promotes economic projects to make the
Olympic Coast more attractive to investors.
6 ESD Covered Employment, 2024
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–10 Public Review Draft June 2025
Covid-19 has impacted hiring levels for specific industries in the county.
In 2020, 31% of the workforce was employed by government due to an
increase in hiring by the federal government, but that dropped to 28%
the following year. Accommodation and food services jobs saw a
decrease in 2020 and have slowly recovered and rebounded to a similar
number of jobs as pre-pandemic.
Exhibit 7-3 Covered Employment Share by Sector (2002–2022)—Jefferson County
Source: ESD Covered Employment, 2024; BERK, 2024.
Small businesses also play a significant role in Jefferson County. In 2021,
there were 1,018 established businesses throughout county.
Approximately two-thirds of these were small businesses with fewer
than 5 employees (64%) and more than 80% of registered businesses
had fewer than 10 employees. These are higher than statewide counts
which show 58% of businesses had less than 5 employees and 76% had
fewer than 10 employees.7
The economy of Jefferson County also includes an industrial,
agricultural, and service base. With a history rooted in its forestry and
maritime resources, the county has strong natural resource extraction
and manufacturing industries. Its rural area supports an agricultural
base, and there is a significant service and tourism industry.
Resource Based Sectors
7 U.S. Census CB2100CBP: County Business Patterns, 2021
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–11 Public Review Draft June 2025
▶ Resource Based Sectors and Manufacturing Industrial: The
largest economic sectors of Jefferson County has a strong history of
by dollar value are the natural resource extraction and
manufacturing -based sectors, including private commercial
forestry, timber harvest, and gravel and other mineral resource
extraction. Its manufacturing has a history of supporting canneries
and fruit, vegetable, and poultry production. It currently also
includes lumber, fish processing, and shipbuilding, repair, and
maintenance. Today, cCommercial forestry occupies the largest
area of privately owned land in the county and is zoned at a
minimum of eighty acres per resource parcel. These sectors make
up 16% of total nonfarm employment in Jefferson County.
Agriculture
▶ Agriculture: While occupying much less of the economy than in
previous decades, Jefferson County possesses the county includes
and designates large areas for long-term commercially viable
agricultural production due to its high- quality agricultural soils and
grazing areas. The return of agricultural-based jobs and incomes
has been is slow yet steady and is the focus of increasing support
and interest by from agricultural leaders in attracting new and
expanding existing agricultural-based jobs in Jefferson County. The
agricultural base includes tree farms, aquaculture, an organic
farming sector, and food production with an emphasis on artisanal
farm products. Agriculture has grown in employment and in the
number of establishments since 2015To underscore the importance
of agriculture in our economic resiliency, agriculture jobs actually
grew in Jefferson County during the Great Recession.
▶ Other Manufacturing, Service Based Jobs, and Industries
Historically, Jefferson County had more industrial development than
today. Various activities relating to fruit, vegetable, and poultry
production, canneries, tourist ferries to Seattle, as well as sawmills and
other resource extraction activities took place in the county. Key major
industrial development included the Puget Sound Iron Company in
Irondale (1879-1881), the Western Mill and Lumber Company in Irondale
and Port Hadlock (1884—1907), and the Alcohol distillery in Port
Hadlock (1911—1913). World War I and World War II ushered in a
burgeoning industry from military installations and support facilities.
Remnants of this era include coastal defense systems at Fort Warden,
Fort Townsend, Fort Flagler, and development of the Indian Island
munitions depot.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–12 Public Review Draft June 2025
▶ Service Based Industries: Currently, Jefferson County supports
jobs in a broad range of service-based jobs and in the
manufacturing, the marine trades, and maritime industries. These
jobs exist in the incorporated and unincorporated urban growth
areas, in the rural commercial and rural village centers and
intermittently throughout other rurally zoned lands. These include
all services related to small businesses, and health care and medical
serviceshome businesses and cottage industries, tourist based and
food services and health care and medical services. The service-
based sectors come in second place in Jefferson County after
resource-based economies for total jobs supported and by dollar
volume generated.
▶ Tourism: Tourism is a key economic sector in Jefferson County,
with its access to varied recreation opportunities on the Olympic
Peninsula and along the coast, a vibrant port, and numerous shops,
restaurants, and lodging for visitors. In 2023, 644,000 people visited
the county. These visits help boost the accommodation and food
services sector, which provides employment for approximately 12%
of the county workforce. Prior to the pandemic, visitors spent
approximately $126.8 million in the county in 2019.8 By 2023, direct
visitor spending in Jefferson County increased to $159.9 million,9 an
increase of 26%. Nearly half of 2023 visitor spending was spent on
lodging. The impact of this tourism generated $14.1 million in direct
state and local taxes in 2023.
Wages
The 20162022 average annual average wage for Jefferson County was
$36,850 in 2016$71,094 in 2022. This was below the state’s average annual
wage of $102,378$59,073, as well as the state average minus King County,
which was $76,544$46,771. The median hourly wage in 20162022 was
$27.01$20.16, less than that of the state’s median hourly wage at
$32.45$23.91 and for the state less King County at $27.63$20.68.10
Industries with higher average wage earnings included utilities,
manufacturing, government, and professional, scientific, and technical
services and government (Exhibit 7-4) jobs. Government jobs
represented about 27% of covered employment in 2022. Other sectors
representing a large share of the 2022 workforce—including
accommodation and food services and retail trade (12% each)—had
some of the lowest average wages by sector (approximately $24,500
and $35,300, respectively).Inflation adjusted average wages in the
8 Jefferson County Economic Development Existing Conditions Report, 2021.
9 Olympic Peninsula Tourism Commission, 2023 Value of Tourism to Jefferson County, 2024.
10 ESD Median Hourly Wage, 2022.
Jefferson County has a strong
tourist industry, with historical
ties as a destination for tourist
ferries from Seattle and its
geographic proximity to
recreation opportunities.
Tourism provides a valuable revenue stream through its
lodging, restaurants, and
shops. Tourism jobs are
located throughout the county in similar areas as service-based jobs.
The County is also a board
member and funding partner
of the Olympic Peninsula
Tourism Commission (OPTC), a partnership of neighboring
jurisdictions to promote the
Olympic Peninsula as a
desirable destination. The County collaborates with
Clallam, Mason, and Greys
Harbor Counties, as well as
the Cities of Sequim, Port
Angeles, and Forks to market
tourism on the Olympic
Peninsula. These efforts
support regional tourism in
the area.
Commented [JH1]: Updated with 2023 report info from Olympic Peninsula Tourism Commission
per Climate Element call w/George + Donna 4/16
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–13 Public Review Draft June 2025
county have been lower than the State and nation and have been
falling further behind. Given the high proportion of potential retirees in
the population, wages are likely to be a smaller proportion of county
residents’ personal incomes. See Exhibit 7-4 on the following page.
Exhibit 7-4 Average Annual Wage by Sector (2022)16
Note: This exhibit was updated with more recent data since the 2018 Comprehensive Plan.
Note: Average annual wage for all industries is from ESD’s countywide average annual wage figures, which is higher
than the average annual wage listed in the covered employment data. This is because some wage information by
sector is redacted in covered employment data to avoid disclosure of data for individual employers.
Sources: ESD Covered Employment and Average Annual Wage, 2022; BERK, 2024ESD, 2017; BERK Consulting, 2018.
Inflation adjusted average wages in the county have been lower than
the state and nation and have been falling further behind. Given the
high proportion of potential retirees in the population, wages are likely
to be a smaller proportion of county residents’ personal incomes. See
Exhibit 7-5Exhibit 7-4 on the following page. Net earnings (e.g., wage,
salary, proprietary income) accounted for 38% of personal income in
2022 compared to 64% of personal income statewide (Exhibit 7-6),
consistent with the higher proportion of retirees in the county.
The largest employers by sector in Jefferson County are
accommodation and food services, retail trade, and health care.
Together these sectors make up approximately 40% of covered
employment in the county. Jefferson Healthcare is the largest public
employer in Jefferson County.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–14 Public Review Draft June 2025
In addition to large employers like Jefferson Healthcare and the Port
Townsend Paper Company, Jefferson County is characterized by having
many small business employers. This characteristic of having a local
economy of many small businesses provides resiliency, as when an
individual employer moves or goes out of business, it does not take the
whole local economy with it. Economic development strategies in
Jefferson County may include consideration of major industrial
developments or similarly large businesses, but the mainstay has been
developing and maintaining businesses scaled to the infrastructure
and development intensities that Jefferson County can provide or
foresee in our current planning horizon.
Exhibit 7-5 Employment Share by Sector & Inflation Adjusted Average Wage (1990–
2022)—State, State Less King, and Jefferson County
Employment Share by Sector
Source: ESD, 2017; BERK Consulting, 2018. Inflation Adjusted Average Wage
14%13%12%11%10%
8%
6%
0%
5%
10%
15%
20%
25%
1990 1994 1998 2002 2006 2010 2014
Accommodation
and Food
Services
Retail Trade
Health Care and
Social Assistance
Government
Educational
Services
Manufacturing
Construction
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–15 Public Review Draft June 2025
Note: This exhibit was updated with more recent data since the 2018 Comprehensive Plan. Sources: ESD Average Annual Wage, 2022; BERK, 2024.
Exhibit 7-6 Sources of Personal Income (2022)—Jefferson County vs. Statewide
Note: Personal current transfer receipts include Social Security benefits, medical benefits, veterans’ benefits, and unemployment insurance benefits.
Source: U.S. Bureau of Economic Analysis (BEA) Economic Profile for Jefferson, 2022.Source: ESD, 2017; BERK
Consulting, 2018.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–16 Public Review Draft June 2025
Taxable Sales Trends
Taxable retail sales capture information about some types of economic
activity. Inflation adjusted annual and quarterly taxable retail sales are
shown for unincorporated Jefferson County can been seen in Exhibit
7-7 and Exhibit 7-8. The data show both the variability of some sectors
across time as well as the seasonal variation within sectors. It shows the
reliance of the county on retail and construction as sources of sales tax
revenue, and the seasonal variation of these sectors. Sales from retail
trade and accommodation and food services also reflect the growing
tourism in the county (see Exhibit 7-3 and section on tourism above). A
2010 report by E.D. Hovee and Company found that travelers to
Jefferson County spend proportionately more for dining,
accommodations, groceries, other retail purchases, and arts,
entertainment, recreation than is typical for visitors traveling elsewhere
in Washington (E.D. Hovee & Company, LLC, 2010).11
Exhibit 7-7 Inflation Adjusted Annual Taxable Retail Sales (2005–2023)—Unincorporated Jefferson County
Note: This exhibit was updated with more recent data since the 2018 Comprehensive Plan.
Note: Inflation adjusted to 2023 dollars.
Sources: Department of Revenue Taxable Retail Sales, 2024; BERK, 2024.ESD, 2017; BERK Consulting, 2018.
11 E.D. Hovee & Company, LLC, 2010.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–17 Public Review Draft June 2025
Exhibit 7-8 Inflation Adjusted Quarterly Taxable Retail Sales* (2013–2023)—Unincorporated Jefferson County
Note: This exhibit was updated with more recent data since the 2018 Comprehensive Plan.
Note: Inflation adjusted to 2023 dollars.
*Note seasonal periodicy.
Sources: Department of Revenue Taxable Retail Sales, 2024; BERK, 2024ESD, 2017; BERK Consulting, 2018.
Educational Attainment
Approximately 94.1% of Jefferson County residents age 25 and older
were high school graduates, compared to 90.4% of Washington State’s
residents and 86.7% of U.S. residents in the period 2011-2015. Those with
a bachelor’s degree or higher made up 37.0% of Jefferson County
residents age 25 and older compared to 32.9% of state residents and
29.8% of U.S. residents over the same period.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–18 Public Review Draft June 2025
Exhibit 7-7 Adult Educational Levels
Source: ESD, 2017; American Community Survey, BERK Consulting, 2018.
While Jefferson County has a higher adult educational level than the
state, the county also has a larger share of residents over the age of 60,
indeed, the largest in the State, as shown in Exhibit 7-3. The educational
achievement rates of adults 65 and older is much higher than other age
groups, shown in Exhibit 7-9.
Exhibit 7-8 Adult Educational Levels by Age Group
Source: ESD, 2017; American Community Survey, BERK Consulting, 2018.
1.7%
4.2%
23.2%
27.1%
6.8%
21.5%
15.5%
4.0%5.5%
23.3%24.6%
9.8%
20.9%
12.0%
5.7%7.6%
27.8%
21.1%
8.1%
18.5%
11.2%
0%
5%
10%
15%
20%
25%
30%
Less than 9thGrade Some HighSchool, NoDiploma
High SchoolDiploma/GED Some College Associate'sDegree Bachelor'sDegree Master's orHigher
Jefferson State U.S.
Population in
Age Group
2,572
2,483
9,952
9,598
8%
7%
5%
5%
67%
67%
58%
50%
25%
26%
37%
45%
0%20%40%60%80%100%
25 to 34
35 to 44
45 to 64
65 and older
Less than high school High school graduate Bachelor's degree or higher
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–19 Public Review Draft June 2025
Challenges & Opportunities
The county’s land largely consists of rural and
resource lands, and limited urban areas, which
creates economic development needs unique to the
county and its residents. Economic development
strategies must balance economic growth, housing
needs, environmental and health protection, and a
high quality of life.
Many economic development opportunities exist to
provide forestry, agriculture and aquaculture
production and processing, marine industries,
tourism and recreation, and other enterprises suited
to a rural county; yet the State Growth Management
Act (GMA) limits opportunities for urban levels of
development or urban services outside of urban
areas.
Planning under GMA, Jefferson County identified
development patterns in place at the time GMA was
adopted, July 1, 1990. As planning continued through
the adoption of the first County Comprehensive
Plan under GMA in 1998, and subsequent years,
designation of urban and rural commercial centers
was completed: the Irondale and Port Hadlock
Urban Growth Area (UGA), designations of rural
commercial and industrial districts, and outer
boundaries of LAMIRDs (Limited Areas of More
Intensive Rural Development (LAMIRDs), essential
public facilities like the airport, and master planned
resorts. These designations were made very
conservatively. With the experience of local
jurisdictions implementing GMA over the last 20
years, the County is compelled to revisit the
planning assumptions of the 1990’s and analyze in
the current planning horizon how we need to
balance GMA goals with our local circumstances to
maintain and grow a rural economy and preserve our rural character.
The County has the opportunity to designate major industrial
developments or plan industrial land banks under GMA. The County is
considering all tools available in compliance with GMA, as well as
partnering with economic development entities in the county and
engaging with the state legislature to advance creative solutions to the
challenges of implementing GMA in rural counties.
Another challenge is that the state legislature, under GMA, has not
made funding available for Economic Development Elements. Funding
There is an expansion of agriculture businesses making value-added products—
for example, winery, brewery, creamery, a
culinary institute, and growth in farmer’s markets. Value-added products can provide a higher return on investment, as well as cash
flow from sales during off-season times of
year. The additional costs of licensing and processing facilities may limit the feasibility of producing value-added products, but often
infrastructure costs, such as a commercial
kitchen, can be shared cooperatively among many processors.
Major aspects of the agriculture economy
include the cost of land and finding markets. Agriculture organizations working in Jefferson County are connecting farmers with local markets for their products by building
relationships between farmers and consumers (eat local first, local marketing strategies, and educating consumers). This includes finding niches for products, forming
relationships with buyers—wholesale, restaurants, cooperatives, direct-marketing, or farmers markets.
Whether it’s providing a special ingredient for
a local chef, or connecting organic growers
with wholesale buyers, market connections
made and relationships developed have
helped producers and consumers both find value-added business.
—Kelli Henwood, WSU Jefferson County
Extension, September 2018.
The Return of Agricultural-based
Jobs Enhanced by Relationships &
Market Connections
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–20 Public Review Draft June 2025
strategic and long-term planning by the County and partners would
help further this Element’s goals and implement strategies.
Strengths & Challenges
Prior assessments of county-wide economic conditions date back to a
2010 review of existing conditions. The 2010 Economic Existing
Conditions Report provided a “SWOT” analysisOne objective of the
Economic Existing Conditions Report (E.D. Hovee & Company, LLC,
2010) is to provide a “SWOT” analysis—a preliminary assessment of
Strengths, Weaknesses, Opportunities & Threats affecting the local
economy. SWOT findings are intended to consist of preliminary
summary observations, subject to refinement in consultation with
participating jurisdictions and stakeholders. The summary below is an
abbreviated representation of the 2010 findings and includes additional
findings from subsequent stakeholder discussions and updated
community profile information in Appendix E.
SWOT Analysis of key variables generally affecting economic
development in Jefferson County:
▶ An available workforce population with a higher than average
educational level.
▶ Natural setting and quality of life that increases appeal as a place
to live.
▶ Proximity to growing Puget Sound region.
▶ Growing popularity as a tourist destination.
▶ Availability of industrial sites, working harbor, and diverse maritime
sector.
▶ A limited workforce that is increasing in average age or becoming
removed from the workforce through retirements, and relatively
high and growing service sector needs as population ages.
▶ Distance from markets and direct client contact, constraining
options for business expansion.
▶ A lack of countywide recovery from the Great Recession and
COVID-19 pandemic that continues to constrain those trades,
goods and services that support economic development (including
recovery of construction, manufacturing, and related sectors).
▶ A lack of affordable housing caused from housing costs outpacing
average household incomes.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–21 Public Review Draft June 2025
▶ Higher home prices from limited housing supply, and a scarcity of
rental units with a 2017 vacancy rate of 5.81% or less as of early
2024.12
▶ Barriers to attracting a qualified workforce especially for the
agricultural sector due to the shortage of affordable housing and
limitations on developing workforce housing.
▶ Legal barriers and limited public-sector financing to build
infrastructure to support new or expanded job growth (municipal
wastewater treatment, access to broadband internet services) in
rurally zoned areas of Jefferson County.
This report builds upon the previous 2010 assessment, with updates
most recently from 2021 Economic Existing Conditions Report (E. D.
Hovee & Company, 2021), which primarily revised the metrics
considered in the 2010 review. The latest analysis includes updates to
the data and trends sections, reflecting the pandemic economic
landscape and policy changes since 2010. The 2021 Economic Existing
Conditions Report the following:
▶ Demographics of Port Townsend and Jefferson indicate
populations that are older with smaller households, higher
educational attainment but lower median household incomes and
housing values than for the entire state of Washington.
▶ Over the course of the 2020 pandemic year, Jefferson County had
an estimated average of 1,130 firms employing 8,637 workers.
Average annual wage was $45,540 per employee in 2020 (38%
below the statewide average wage of $73,500). Countywide
covered employment increased by 636 jobs from 2010 to 2020, up
by 1,144 from 2010 to 19 but then offset by a net loss of 508 jobs
averaged over the full 2020 calendar year.
▶ From 2010 to 2021, countywide labor force and unemployment have
mirrored changing trends similar to that of the state but with
unemployment averaging about 1.2% points above the statewide
rate through 2019. As of mid-2021, resident labor force is about 1,660
less than at the prior year 2007 peak. A question going forward is
whether workforce recovery will occur with pandemic easing and
economic recovery nationally.
▶ Overall sources of personal income are considerably different in
Jefferson County than is the case statewide. Net earnings which
include wage and salary as well as proprietary income accounted
for 41% of personal income in 2010, declining to 37% in 2019. By
comparison, net earnings represented a substantially higher 63% of
personal income statewide both in 2010 and 2019. For Jefferson
12 Washington Center for Real Estate Research, 2024.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–22 Public Review Draft June 2025
County, dividends, interest and rents as well as personal transfer
receipts exceed statewide proportions.
▶ From 2010 to 2021, taxable retail sales have increased by 127% for
the unincorporated portion of the county as compared with a 33%
increase for Port Townsend – with unincorporated taxable sales
exceeding Port Townsend for the first time in 2019. From 2010 to
2020, Port Townsend came to rely more heavily on retail as a source
of taxable revenue, with the unincorporated area more dependent
on increases in both construction and retail. Effects of the
pandemic are clearly indicated for both city and unincorporated
areas – with hospitality dropping from 15% to 12% of taxable
revenues in Port Townsend and from 13% to just 6% in the
unincorporated area.
▶ In 2019 just prior to the COVID pandemic, visitors to Jefferson
County spent an estimated $126.8 million in the county. Tourism
spending is estimated at just under $4,000 per Jefferson County
resident, 37% more than the per capita figure state-wide.
▶ As of early 2021, retail and dining sales for Jefferson County are
estimated at just over $355 million—equal to 52% of resident
consumer buying potential of nearly $682 million. Sales leakage of
48% occurs as residents spend outside of Jefferson County to an
extent not offset by non-resident (or visitor) purchases. Sales
leakage is experienced across all store and dining categories except
for grocery and miscellaneous/specialty retail for which sales
volumes exceed what resident purchases alone support.
Jefferson County Economic
Development Organizations
While this element focuses on the County’s role in economic
development, the County is committed to working collaboratively with
agencies, institutions, and organizations to foster economic
development in Jefferson County. The main organizations and their
strategic priorities are described below. These organizations are
potential partners for regional efforts at business retention,
development, and job creation.
A recent development is the Emerald Coast Opportunity Zone (ECOZ),
which consists of a diverse group of geographical census tracts
intended to make the Olympic Coast more attractive to investors.
Working together, ECOZ is catalyzing economic development in rural
areas by engaging with communities and connecting the best
opportunities with private capital. This Opportunity Zone is a unique
collaboration of five Tribal Nations, four cities, two counties (Clallam and
Jefferson) and two port authorities that spans 14 federally designated
Opportunity Zone census tracts. Together, the partners of the Emerald
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–23 Public Review Draft June 2025
Coast Opportunity Zone are building a deal “engine” of community
driven projects that both present good investments but also create
good jobs, construct affordable and high-end housing, and support
innovative entrepreneurs.13
EDC Team Jefferson
Founded in 2007, the Economic Development Council of Jefferson
County (“EDC/Team Jefferson”) is designated by the Washington
State Department of Commerce as an Associate Development
Organization (ADO) for Jefferson County. It receives funding from
various organizations to help grow and develop the local economy.
One of its main tenets is to identify potential business opportunities
that can be started or attracted to Jefferson County. The EDC assists
entrepreneurs and business owners by connecting them to financing
opportunities such as our Local Investment Opportunity Network—
“LION”, and Community Development Financial Institutions (CDFIs)
such as Craft3, which provides assistance to entrepreneurs, nonprofits
and individuals who do not have access to traditional financing.
According to EDC Team Jefferson, the Jefferson County economy
pivots around nine business clusters (see also Appendix E for more
information about existing economic sectors and major employers):
▶ Advanced Technology & Manufacturing—with established
industries ranging from renewable forest products to technology
and distribution firms.
▶ Arts & Culture—encompassing individual artists, non-profit
organizations, and private businesses such as galleries.
▶ Education—including K-12 public and private schooling, including
new Career Tech Education programs being developed at the
Chimacum Highschool to provide vocational training for entry level
medical professions/trades/food service and higher education
through WSU Extension, Peninsula College and Goddard College.(
Goddard has closed), Northwest School of Wooden Boat Building,
Port Townsend School of Woodworking,
▶ Small Business and Entrepreneur—focused on individual
proprietors or less than 5-employee firms that are technology or
craft/product based in start-up or acquisition mode and with a
range of growth potentials.
▶ Food & Farm—with activities ranging from farm and aquaculture to
food retail and distribution including farmers markets, food banks,
food coop and traditional grocery.
13 ESD Jefferson County profile, 2024.
Herb Beck Waters,
Carolyn Gallaway
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–24 Public Review Draft June 2025
▶ Healthcare—encompassing hospital, medical/clinic, and alternative
health providers.
▶ Marine Trades—with key segments including shipwrights,
outfitters, and boat services.
▶ Real Estate and Construction—including persons employed with
real estate brokerage and development firms together with
residential, commercial and infrastructure construction.
▶ Tourism & Retail—encompassing firms and activities (including
festivals) that provide hospitality, dining and retail services for local
residents and visitors. (Team Jefferson, 2010)
EDC Team Jefferson has identified the following strategies:14
▶ Retain and expand local businesses by energizing
entrepreneurship and providing business skill development
opportunities.
▶ Attract and keep 18-35-year-old emerging entrepreneurs and their
families.
▶ Increase access to local capital for entrepreneurs and small
businesses.
▶ Set a positive tone for business in Jefferson County.
▶ Focus on collaboration and leadership development.
Port of Port Townsend
As independent government bodies run by directly elected
commissioners, Port Districts have a combination of government
powers (taxation, issuing bonds etc.,) and a mission to responsibly
promote sustainable economic growth. They play a key role in
economic development by providing transportation and industrial
infrastructure. Formed by Jefferson County voters in 1924, the Port of
Port Townsend operates three marinas, a marine trades industrial
area, the Jefferson County International Airport, an RV park, and boat
launches, docks, and ramps at multiple sites, and Fort Worden
Beach.
In addition, Ports issue Industrial Development Revenue Bonds
(IDRBs) that offer manufacturing and processing companies below-
market interest rates for eligible uses, such as purchasing land
/equipment, constructing buildings, and/or upgrading existing
facilities. In addition to its maritime and aviation business centers,
the Port of Port Townsend provides building space for new and
expanding businesses. It owns property at Port Townsend Boat
14 EDC Team Jefferson, 2017.
To serve the citizens of Jefferson County by responsibly maintaining
and developing property and facilities to promote sustainable economic growth, to provide
community access to Port facilities and services, and to protect and maintain our community resources, and
maritime heritage.
The Port of Port
Townsend’s Mission
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–25 Public Review Draft June 2025
Haven, Point Haven, Herb Beck Marina, and the Jefferson County
International Airport that it rents out to a variety of businesses that
support the local economy.
Washington State University
WSU Jefferson County Extension services and programs strongly
support Jefferson County agricultural based economic development
through technical assistance, demonstration/teaching farms, local food
resources, and coordination and serving as an information
clearinghouse. WSU extension develops programs and works with the
agricultural-based community to explore and expand new models of
agriculture that pulls together innovations in agriculture and economy.
WSU also coordinates efforts to eradicate noxious weeds with the
Noxious Weed Board and assists the Organic Seed Alliance with seed
banking.
The Chamber of Jefferson County
The Chamber of Jefferson County’s work of building business and
building community throughout Port Townsend, Port Hadlock/Tri-Area,
and Port Ludlow is pursued through relationships with the Economic
Development Council of Jefferson County (EDC Team Jefferson) and
city & state governments, enabling the Chamber and Port Townsend’s
Business Resource Center to be a hub for connecting with business
services and advocating for change when necessary.
North Hood Canal Chamber of Commerce
The Hood Canal Chamber of Commerce operates two Visitor Centers, in
Quilcene and Brinnon, which direct visitors to local lodging, food,
activities, and other goods and services available in the area. Chamber
staff also promote local businesses by developing advertising materials
and connecting local residents and tourists to local businesses.
North Olympic Development Council (NODC)
North Olympic Development Council (NODC) is a non-profit corporation
formed in October 1984 to advance economic and community
development on the North Olympic Peninsula of northwestern
Washington State. NODC is designated and funded through the U.S.
Dept. of Commerce’s Economic Development Administration (EDA) as a
regional Economic Development District. EDA works directly with
communities and regions to help them build the capacity for economic
development based on local business conditions and needs.
The NODC works in collaboration with local governments, businesses,
tribal nations, and non-profit organizations to serve the people of
Commented [AMC2]: As of 2025 the Jefferson
County Chamber has ceased to exist.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–26 Public Review Draft June 2025
Clallam and Jefferson Counties. The Council Board of Directors has
identified several immediate areas of focus to foster economic
development. These are listed below:
▶ Work to improve infrastructure in support of economic growth.
▶ Make renewable energy technology and innovative manufacturing
key components of the regional economy.
▶ Focus on innovative manufacturing (i.e.: composites) to diversify
the regional economy.
▶ Encourage entrepreneurship.
▶ Help build a higher-skilled, high-wage workforce.
▶ Explore regional and international markets.
▶ Expand tourism opportunities/revenues.
▶ Improve regional collaboration and partnerships.
▶ Advocate for natural resource and agriculture growth.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–27 Public Review Draft June 2025
Countywide Planning Policies
The Countywide Planning Policies direct that the Comprehensive Plan
give attention to the needs of nonservice sector businesses and industries
and recognize that some businesses are best suited for the UGA while
others may be better suited for the rural unincorporated areas.
1. The private sector is primarily responsible for the creation of economic opportunity in Jefferson County. The responsibility of the public sector is to assure that these activities are carried out consistent with defined
community and environmental values. To this end, comprehensive plans should clearly identify these values in order that economic opportunity is not lost due to confusion or unreliability of process. Particular attention will be given to the needs of non-service sector businesses and industries as a strategy to increase wage earning potential within the community.
2. An economic development element shall beshould be prepared and included in the County's and incorporated areas' cities’ comprehensive plans. This element should identify and designate adequate areas for commercial, retail, and industrial growth necessary to sustain and meet future population and
employment forecasts. The economic development element shall be coordinated with the capital facility,
land use and utilities elements of the comprehensive plan.
3. Each UGA and rural center is considered the commercial and business "hub" in their respective area of the County. UGAs should be viewed as regional service and retail centers, while the rural center focus is on local community retail and service needs, and transient accommodations.
4. Certain The GMA contains provisions for the designation of Major Industrial Developments ( MIDs) under RCW 36. 70A. 365 and up to two master planned locations as part of a Jefferson County Industrial Land Bank (ILB) under RCW 36.70A.367. These provisions acknowledge that certain industries, due to their size or type of operation, or due to their dependence on the local resource base, should not be located within the
boundaries of UGAs. When locating these types of activities outside of UGAs, special attention must be given to assure that the activity will not promote "urban development" of the surrounding area. These activities will need to be self-supporting and not require the extension of urban services.
5. Jefferson County may maintain policies and development regulations associated with the siting of MIDs, as
authorized in RCW 36. 70A. 365, in consultation with cities within the County.
6. Jefferson County may pursue the designation of up to two master planned locations as part of an ILB, as authorized in RCW 36. 70A.367, in consultation with cities within the county and other partner entities through a process involving the Growth Management Steering Committee, the Economic Development Council of Jefferson County, and the Port of Port Townsend. Establishment of the ILB will be conducted through a public participation program within the framework of the Growth Management Act.
7. The Port of Port Townsend's legislative statutory authority should be utilized as a tool to implement
industry and trade strategies,; including the promotion of employment opportunities, the consolidation
and parceling of property, and the development of infrastructure to meet the needs of industry consistent with comprehensive plans and development regulations.
Countywide Planning Policy #7
Policy on Countywide Economic Development & Employment
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–28 Public Review Draft June 2025
7.3 ECONOMIC
DEVELOPMENT PLAN
As discussed above, current employment covered by unemployment
insurance is about 8,968 jobs as of 2023.15 This does not include sole
proprietors, clergy, chief executives, etc. Covered employment generally
represents 85-90% of total employment in communities (Employment
Security Department and PSRC, 2017). If adding 15% to the total covered
employment in 2023, there would be about 10,300 jobs. Total
employment is estimated to rise to about 14,000 jobs by 2045 based on
expected housing growth, existing jobs to housing ratios, and
estimated 2023 total employment by planning area. See Exhibit 7-9.
Employment shares within planning areas for 2023 were estimated
using 2022 Longitudinal Employer-Household Dynamics (LEHD) data
from the U.S. Census OnTheMap tool, ESD’s countywide 2023 covered
employment estimate, and existing housing units and projected
housing growth from Housing for All Planning Tool (HAPT) tool.
Exhibit 7-9 Estimated Employment Growth by Planning Area (2023–2045)
Location
2022 All Jobs (LEHD)1
2023 Covered Emp. (ESD)2
2023 All Jobs (+15%)3 2020 HU (HAPT)4 Existing J/H5
2020-45 HU Growth (HAPT) 4
2023-45 Est. Job Growth6 2045 Est. Jobs
Port Townsend (Inc.) 3,662 4,387 5,045 5,692 0.89 1,648 1,461 6,506
Unincorporated 3,824 4,581 5,268 11,159 — 2,471 2,229 7,497
Unincorporated UGA 1,1082 1,327 1,526 1,411 1.08 1,648 1,783 3,309
Unincorporated Rural 2,716 3,254 3,742 9,748 — 823 446 4,188
Port Ludlow MPR 2362 283 325 1,950 0.17 300 50 375
Pleasant Harbor MPR7 — — — — — 127 208 208
Brinnon RVC 952 114 131 1,041 0.13 30 4 135
Quilcene RVC 2012 241 277 299 0.93 30 28 305
Other Rural Areas 2,184 2,616 3,009 6,458 0.47 336 157 3,165
Countywide Total 7,4862 8,968 10,313 16,851 — 4,119 3,689 14,003
1 All jobs based on U.S. Census OnTheMap (2022 LEHD) estimates for the City of Port Townsend, Jefferson County
overall, and the Port Hadlock-Irondale, Port Ludlow, Brinnon, and Quilcene Census Designated Places (CDP). Note
the CDP boundaries are slightly larger than the Irondale and Port Hadlock UGA, Port Ludlow MPR, and Brinnon
and Quilcene RVCs but used here for estimation purposes. Total unincorporated jobs were calculated base on the
countywide and Port Towsend totals. The unincorporated rural total was calculated based on the unincorporated
total and Port Hadlock-Irondale CDP estimate.
2 Individual geographies estimated based on percent share of all 2022 jobs per LEHD and 2023 total countywide
covered employment of 8,968 per ESD.
3 Fifteen percent (15%) added to covered employment to estimate total 2023 jobs.
15 ESD Covered Employment Estimates, 2023.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–29 Public Review Draft June 2025
4 See Exhibit 3-2 and Exhibit 3-12 in the Housing Element. 5 Existing jobs to housing is calculated by dividing estimated 2023 jobs by estimated 2020 housing units.
6 Estimated job growth is calculated by multiplying the existing jobs to housing balance for the City of Port
Townsend, unincorporated UGA, Port Ludlow MPR, Brinnon and Quilcene RVCs, and other rural areas by
estimated housing growth from the HAPT. The Pleasant Harbor Development Agreement assumes between 104–208 workers will live on site in staff housing once fully developed so 208 jobs are assumed. Estimated job growth
in all unincorporated rural areas is the sum of individual rural planning areas. Estimated job growth in all
unincorporated areas is the sum of the unincorporated UGA and unincorporated rural areas. Estimate job growth
countywide is the sum of estimated job growth in Port Townsend and the unincorporated county. 7 The Pleasant Harbor MPR has not yet been developed and so no existing jobs or housing are assumed. The
Pleasant Harbor Development Agreement assumes between 104–208 workers will live on site in staff housing.
Sources: LEHD, Origin-Destination Employment Statistics, 2022; ESD Covered Employment Estimates, 2023; ESD and
PSRC, 2017; Jefferson County, 2025; BERK, 2025.
The economic development plan leverages the strengths of the county
to support a strong and diversified economy with continued
employment growth. Key opportunities and sites are listed below.
Workforce Development
Given the county’s high educational attainment, there is an opportunity
to both increase and better align educational resources and training
programs with industry. This will ensure access to a high-skilled
workforce for regional businesses and to higher wage jobs for county
residents.
Industrial & Manufacturing Businesses
A key strength and opportunity area is the availability of designated
industrial and manufacturing sites that can both serve small, local
entrepreneurs and potential advanced manufacturing businesses. In
addition to the availability of sites suitable for industrial or
manufacturing uses, the county’s highly-educated workforce is an asset
for emerging manufacturing uses that require higher-skilled workers.
Industrial sites in Jefferson County include the Port of Port Townsend,
Port Townsend Industrial Park (which has become a commercial and
business park), Glen Cove, Eastview, Quilcene Industrial Area, the Irondale
and Port Hadlock UGA, the Port Townsend Paper Company, 24 acres at a
Light Industrial/Manufacturing area at the Jefferson County International
Airport, and Resource Based Industrial zoned sites.
In addition to the industrial sites described above, the light industrial
manufacturing park at the Jefferson County International Airport, also
known as the Airport Light Industrial Park also allows non-aviation
related industrial and manufacturing uses. Development of the Airport
Light Industrial Park will require Binding Site Plan approval(s) and
clearing and installation of infrastructure before business operations
may commence.
Commented [JH3]: Transportation Appendix did not update job growth estimates. Added new estimates based on jobs to housing ratios and projected growth. See also revised Exhibit 1-4 in
the Land Use Element.
Commented [JH4R3]: Confirmed approach with Joel 4/3
Commented [AMC5]: According to the graphic on 7-17, exhibit 7-8; the county’s population between 25-44 (working age) 67% have a high school diploma.
I think that this statement that the county has
high education attainment is inaccurate. I will
provide a recent workforce development survey
that supports the understanding that a
significant portion of the post k12 population is disengaged and unable to access useful post-secondary education due to barriers like
transportation. Access to affordable and
vocational training via Peninsula College main
campus/ Olympic College campus in Kitsap etc.
EDC Team Jefferson was awarded funding from
the Recompete grant to provide for robust workforce development effort surveying local businesses for a better understanding of their
technical training needs in order to encourage
Peninsula or other community colleges to
respond locally to the demand.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–30 Public Review Draft June 2025
Information about designation and siting of Industrial Land Banks or
new Major Industrial Developments can be found in the Land Use
Element.
Placemaking for Visitors & Residents
In addition to its natural and scenic assets, the distinct Port
Townsend Downtown and small-scale neighborhood business
districts in the county are a place-making feature that attracts
visitors and serves the local communityresidents.
Commercial development in Jefferson County is mainly
concentrated within the City of Port Townsend, the Irondale and Port
Hadlock UGA, and to a lesser extent, within the County’s LAMIRDs,
which includes Brinnon, Quilcene Discovery Bay, Chimacum, Mats
Mats, Wawa Point, Beaver Valley, Nordland, Gardiner, and Four Corners.
The Port Ludlow and Pleasant Harbor Master Planned Resorts also have
sites zoned for commercial development. Home Businesses, Cottage
Industries and Small-Scale Tourist Recreational uses are also allowed in
most non-commercial zones with a permit.
Sustainable, Innovative Agricultural &
Food Businesses
Given its historic and environmental strengths, the county has a small
but growing set of businesses related to farming and related food
production such as grains, eggs, cheese, and spirits. In addition,
aquaculture continues to be a key industry. Local economic policy can
support this sector so that it continues to add diversity and
entrepreneurial opportunities to the economy.
The state implemented Initiative 502—the legalization of recreational
cannabis production, processing and sales. In 202417, Jefferson County
sales generated approximately $2,224,0002,049,000 in state excise tax
from cannabis sales, and the County received only $21,297$64,123 of
that amount for local enforcement and health programs.16
16 Washington State Liquor and Cannabis Board Fiscal Year Cannabis Sales and Excise Tax by County, retail sales only from 07/01/2023 - 06/30/2024. Jefferson
County Treasurer’s December 2024 Revenue Report, January 2025.
Downtown Port Townsend
Chimacum Corner Farm Stand, Jefferson County
Commented [JP6]: Data search in progress with
Treasurer
Commented [JH7R6]: I think I found this in the Dec 2024 Treasurer’s report. See 2024 actual YTD on page 3 (about ⅔ of the way down) of https://test.co.jefferson.wa.us/WeblinkExternal/0,
0,0,0,0/edoc/9446857/2024-12_DECEMBER_Treasurer_RevenueReports.pdf.
Commented [YA8]: Need to update - how to get this information?
Commented [JH9R8]: Updated 2024 excise tax amount per WA Liquor and Cannabis Board, but not sure how to get the amount received by the
County.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–31 Public Review Draft June 2025
Infrastructure Improvements as
Economic Development Strategy
Investments in infrastructure can be a powerful way to attract high-
quality jobs and entrepreneurs. For rural counties such as Jefferson
County, investments in infrastructure such as broadband can address
multiple objectives such as the provision of healthcare services or
education, support tourism and attract a younger, more mobile
workforce.
In addition to broadband, some parts of the county will also benefit from
sewer infrastructure. For example, the primary growth center for
unincorporated Jefferson County, the Irondale and Port Hadlock UGA
requires sewer as an “urban level of service” to implement new zoning
urban level zoning and density. This sewer system has been identified as
a critical element for increased regional economic development.
Construction of the Phase I wastewater treatment plant and collection
system for local residents and businesses in the Port Hadlock area is
currently underway and anticipated to be ready in 2025. When
construction of the sewer system is completed, the Irondale and Port
Hadlock UGA will be able to support affordable housing, medical
facilities, higher density multifamily residences, senior housing, as well as
commercial and industrial development. This Phased sewer
implementation will facilitate further economic development as almost
one-quarter of the UGA is designated for commercial land use, including
a commercial zone as the largest with 272 acres. The UGA-C zone also
allows multifamily with 3+ units as a discretionary use to balance
economic development and housing goals in the UGA (see the Land Use
Element and Housing Element for more information). Approximately 25
acres is designated as Urban Light Industrial (all but 5 acres of which are
already in light industrial use). This UGA has been found to be legally
compliant with the GMA as of January 27, 2010. The County is currently
pursuing funding to construct the wastewater infrastructure to promote
future economic growth in this area.
Within LAMIRDs, development is constrained by the cost of utility and
infrastructure upgrades as well as by existing LAMIRD boundaries.
Some wastewater treatment options are considered an urban level of
service and not allowed in LAMIRDs. This limits wastewater
improvements that would support job growth, existing commercial
development, and improve existing housing stock.
Commented [JH10]: TO DO: Confirm pending revised zoning map from the LU Element
Commented [JH11R10]: Updated slightly to reflect no overlay in the UC zone
Commented [AMC12]: My understanding is that sewer facilities are not precluded under GMA for LAMIRDS. Encourage adding a section about the Glen Cove LAMIRD which is zoned for Light Industrial and Light Industrial/Commercial and is adjacent to the Port Townsend UGA. The potential for the
LAMIRD to connect to the PT sewer could benefit business expansion and retention by providing economic incentive to property development for industrial and commercial use
– job growth.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–32 Public Review Draft June 2025
The Port of Port Townsend commissioned a preliminary feasibility study
to estimate the cost of building a large on-site sewage system in
Quilcene, estimated to cost between $6.5 million and $20 million.17
The service area examined was the entire Rural Village Center as
well as the southern half of the center. The information will help the
Quilcene community and Jefferson County consider wastewater
service options and rural economic development goals. The
estimated costs identified in the feasibility study demonstrates the
challenges of providing infrastructure for Jefferson County and the
small community of Quilcene.
Efforts to provide wastewater treatment to Brinnon, another Rural
Village Center, have not been comprehensively developed as of 202518.
However, a wastewater plant was constructed for Dosewallips State
Park in 2014. In cooperation with State Parks, Public Utility District
(PUD) #1 of Jefferson County is investigating the feasibility of expanding
the service area of the facility to address septic issues in Brinnon. A
wastewater treatment plant is required to serve the Pleasant Harbor
MPR near the Brinnon Rural Village Center. There are efforts to identify
and correct failing septic systems in Brinnon through the Central Hood
Canal Pollution Identification and Correction Project for the period
2017–2020.18Jefferson County Public Health conducts a Pollution
Identification and Correction program throughout Eastern Jefferson
County to identify sources of pollutants, including failing septic
systems, to keep surface waters clean and shellfish beds open for
harvest. A comprehensive strategy to address rural wastewater
treatment could be a future action strategy.
Water supply is critical in both rural and urban areas for rural economic
development but presents a challenge to provide. For this reason,
water utility coordinating committee (WUCC) members, including A
key water provider is Jefferson County PUD, City of Port Townsend,
Olympic Water and Sewer Inc., among others, are participating in a
2024-2026 county-administeredwho is leading an update to a
consolidated the Coordinated Water System Plan (CWSP); see the
Capital Facilities & Utilities Element and Appendix D Capital
Facilities Plan Technical Document. Once completed, the WUCC
would recommend that the Board adopt the updated 2025 or 2026
CWSP which is also envisioned to provide guidance not only to group A
systems which serve 15 or more connections but also group B water
users which service 3 to 14 connections.
Water development is a need for rural economic development but
presents a challenge to provide.
17 Port of Port Townsend, 2017.
18 Jefferson County Public Health, 2017.
Quilcene, BERK
Commented [JP13]: Still true, and prospects likely
more challenging re. wastewater treatment than
Quilcene. The related issue is in regard to
existing development and septic failure risk in the floodplain. I’ll seek updated information regarding this point.
Commented [CE14R13]: This is all still accurate.
Commented [JH15R13]: Thanks, updated to 2025
Commented [CE16]: This specific project is over.
See revised, more generic language.
Commented [JP17]: Joel get information on
current efforts and scope of funds.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–33 Public Review Draft June 2025
Other infrastructure investments that benefit economic development
include transportation improvements, especially regarding ferries.
Updates to State ferry system plans are underway, and will include local
input.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–34 Public Review Draft June 2025
7.4 GOALS & POLICIES
Goal ED-G-1 Improve and enhance coordination with
federal, state, regional, tribal and local economic
development groups to promote a healthy and vibrant
economic environment within Jefferson County.
Policy ED-P-1.1 Adequately fund Jefferson County’s
designated Associate Development Organization
(ADO)—“EDC Team Jefferson”—and establish specific
responsibilities and performance measures for the ADO
to ensure that taxpayers obtain good value for their
investment. Support the ADO in providing access to
business management expertise for new and growing
businesses (Joint Economic Development Strategy
(JEDS) Strategies 1.6 & 1.9). Support collaborative work
between economic development partners, including
Jefferson County Economic Development Council Team
Jefferson (EDC Team Jefferson), North Olympic
Development Council (NODC), Port of Port Townsend,
City of Port Townsend, and other public and private
partners in efforts to plan for, promote, educate, train
attract, build and maintain businesses and economic
development in Jefferson County.
Policy ED-P-1.2 Investigate and/or pursue programs,
grant funds and other technical and financial support
with federal, state, and local agencies to collectively plan,
develop and implement economic growth in high
demand sectors of the local economy.
Policy ED-P-1.3 Consult with NODC and area tribal governments
regarding shared economic development planning and
implementation and discuss solutions to shared issues concerning
economic development and unemployment.
Policy ED-P-1.4 Coordinate with other economic development entities
and related citizen community groups and individuals in Jefferson
County to prepare strategies that promote economic development
opportunities in existing commuter and tourist highway corridors and
non-motorized facilities and multi-purpose trails. Land use and zoning
strategies may include a highway-tourist-commercial zone or other
techniques consistent with rural character.
Strategy 1.6:
Adequately fund the designated Associate Development Organization (ADO), and establish specific
responsibilities and performance measures for the ADO to ensure that taxpayers obtain good value for their
investment.
Strategy 1.9:
Support the ADO in providing access to business management expertise for new and growing businesses.
Joint Economic Development
Strategies 1.6 & 1.9
Commented [AMC18]: This seems like a good place to highlight the Recompete effort and the manner in which it strengthened the connections between our local partners of
Clallam county, ports, edc’s, cities and the tribes.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–35 Public Review Draft June 2025
Goal ED-G-2 Support a comprehensive approach to education and training for employment, job retention,
and advancement.
Policy ED-P-2.1 Support and actively participate in Olympic Workforce
Development Council (OWDC) as they facilitate a full spectrum of
education and job skills providers to coordinate class offerings, facilities,
and staff resources available to Jefferson County residents (teenagers,
adults, displaced workers, veterans, retirees, etc.) who seek high school
degrees, general education degrees, remedial education, vocational
training and retraining, skills or knowledge enhancement, professional
certification, two-year degrees, four-year degrees, and advanced
degrees.
Policy ED-P-2.2 Partner with local businesses, educational institutions,
and business groups to maintain and improve job creation and
business growth in the community.
Policy ED-P-2.3 Coordinate strategies to minimize the impacts of
business displacement resulting from growth pressures, especially
those potentially impacted businesses serving BIPOC and historically
marginalized communities in the county.
Policy ED-P-2.1Policy ED-P-2.4 Coordinate support for culturally diverse
businesses that are experiencing challenges with remaining in the
community and are at risk of displacement.
Goal ED-G-3 Support Jefferson County’s industries that leverage existing strengths, advantages, and potential in
the following areas:
— Health care;
— Port related economic development;
— Marine trades;
— Natural resources;
— Advanced technology/manufacturing;
— Construction and real estate;
— Agriculture/aquaculture;
— Education;
— Home-based business;
— Tourism and retail in centers and corridors; and
— Local and Native arts.
Related to western
Jefferson County
Commented [JH19]: Added per EJC equity analysis
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–36 Public Review Draft June 2025
Policy ED-P-3.1 Support the efforts of the Port of Port Townsend in
diversifying the Jefferson County International Airport (JCIA) to
provide for a broader number of trades, manufacturing, and services.
This may include, but is not limited to, the siting of appropriately
scaled aviation and non-aviation-related industrial/manufacturing
activities in the Airport Essential Public Facilities District.
Policy ED-P-3.2 In accordance with Countywide Planning Policy 7.5,
rRecognize the legislative authority of the Port of Port Townsend as a
valuable tool to implement industry, trade strategies, and promote
employment opportunities.
Policy ED-P-3.3 Protect from encroachment the Port of Port
Townsend’s industrial properties, waterfront and all other public assets
managed by the Port to ensure and enhance economic vitality and
quality of life for the citizens residents of Jefferson County.
Policy ED-P-3.4 Conserve existing agriculture and encourage future
innovative agriculture ventures and technologies, while managing the
water and soil to be sustainable.
Policy ED-P-3.4 Provide funding mechanisms to support the purchase
of local, healthy food for lower income households.
Policy ED-P-3.5 Support broadband or other technology infrastructure
that fosters home-based businesses and online provision of services,
(e.g., telecommuting, telemedicine etc.).
Policy ED-P-3.6 Protect future opportunities for planning Industrial
Land Banks and Major Industrial Developments by keeping
development regulations current and effective for these land uses.
Policy ED-P-3.6Policy ED-P-3.7 Encourage expansion of existing
employers and attraction of new employers that pay wages that can
support households of all sizes
Goal ED-G-4 Work in partnership with public and private
economic development interests to review barriers,
consider flexible regulations that incentivize, encourage
and facilitate innovative economic opportunities within the county.
Policy ED-P-4.1 Continue to work with state, federal, and local agencies
to coordinate and streamline land use review procedures and
processes, while ensuring a proper balance between expeditious review
and protecting the public interest.
Policy ED-P-4.2 Continue to work towards internal efficiencies in the
application of development regulations.
Related to western
Jefferson County
From the Collection of the
Commented [JH20]: Deleted this part of the policy to simplify (if decide to keep, this is CPP 7.7 now)
Commented [JH21]: Added per CAC
recommendation
Commented [JH22]: Added per EJC equity
analysis
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–37 Public Review Draft June 2025
Policy ED-P-4.3 Periodically review and update, if necessary, land-use
and permitting procedures to assure that regulatory processes are
understandable, predictable, and timely.
Policy ED-P-4.4 Continue to work with the City of Port Townsend, Port
of Port Townsend, PUD, economic stakeholders and economic
development agencies regarding capital facilities and land use in the
Glen Cove Industrial District.
Policy ED-P-4.5 Amplify Jefferson County’s strengths in tourism,
recreation, and retail through rural employment opportunities in
centers and corridors and through development and enhancement of
non-motorized facilities.
Policy ED-P-4.6 Encourage or develop programs to support minority-
owned businesses or worker cooperatives.
Policy ED-P-4.5Policy ED-P-4.7 Coordinate with state, federal, and local
agencies to fund worker cooperatives and alternative business
ownership models to promote economic inclusion for BIPOC and other
historically marginalized communities.
Goal ED-G-5 Support the development of tourist and
tourist-related activities as a source of employment and
business opportunities in Jefferson County.
Policy ED-P-5.1 Provide infrastructure for tourist services that promote
agricultural, experiential, and educational tourism, eco-tourism, and
native and cultural tourism as well as recreational tourism with revenue
generated from the lodging tax.
Policy ED-P-5.2 Encourage efforts to preserve scenic open space,
historic and local cultural and tribal resources that attract both local
residents and visitors.
Policy ED-P-5.3 Encourage the development of small businesses,
services, cultural attractions, recreational opportunities, and special
events that capture and support tourism. Identify wider uses for these
small businesses to also furnish goods and services, such as locally
grown food, and value-added products to the traveling public and local
population.
Related to western
Jefferson County
Commented [JH23]: Added per EJC equity analysis
Commented [AMC24]: Might be valuable to talk about the existing Cooperatives; including the new Jefferson Timber Cooperative; PT Shipwrights Co-Op; others…Shared infrastructure
and equipment as a benefit to the heavy emphasis on microenterprise in the rural economy here.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–38 Public Review Draft June 2025
Goal ED-G-6 Encourage economic development that sustains natural resources and open spaces, protects
environmental quality, encourages non-motorized
recreation and transportation, and enhances Jefferson
County’s overall quality of life.
Policy ED-P-6.1 Recognize the economic strengths and opportunities
that come from the appeal of Jefferson County’s surroundings, and
preserve our quality of life as an economic development asset.
Policy ED-P-6.2 Develop and update land use policies that conserve
working resource lands and provide sustainable employment
opportunities.
Policy ED-P-6.3 Encourage “working water-front” small-scale marine
trade activities in Port Hadlock, Port Ludlow, Nordland, and Quilcene.
Policy ED-P-6.4 Expand local food security and the food-related
economy to address climate impacts and increase access to healthy,
affordable, and climate-friendly foods, especially for underserved
communities.
Policy ED-P-6.5 Promote green jobs or businesses that provide eco-
friendly products or services.
Policy ED-P-6.6 Partner with local economic development
organizations, non-profits, community organizations, and businesses to
develop innovative sustainable employment opportunities in the
county
Policy ED-P-6.3Policy ED-P-6.7 Promote and implement connections
between recreational and cultural activities and local businesses to
support economic activity and quality of life.
Goal ED-G-7 Coordinate the development of infrastructure that is adequate to attract and
accommodate the diversified economy centers of
Jefferson County, consistent with the requirements of the
Growth Management Act.
Policy ED-P-7.1 Support and coordinate efforts of infrastructure service
providers, and economic stakeholders in identifying and meeting
infrastructure needs of the diversified economic centers where
commercial and industrial development is appropriate.
Policy ED-P-7.2 Support the development, production, siting and use of
non-fossil based renewable energy such as solar, wind, water, ammonia
fuel, and other innovative renewable sources.
Port
Commented [AMC25]: Might be interesting to point to the multi benefit of programs like wildfire prevention efforts to building the
arborist / sustainable forestry /tree service sector
and then processing and value added
manufacturing of our local economy.
Commented [JH26]: Added per EJC equity analysis
Commented [AMC27]: Glen Cove?
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–39 Public Review Draft June 2025
Policy ED-P-7.3Policy ED-P-7.2 Through emergency or disaster
preparedness networks such as Jefferson County Regional Emergency
Preparedness Network (JPREP), promote infrastructure, includingsuch
as storage, for a local food system capable of supporting the population
of Jefferson County without diminishing the long-term carrying
capacity of the County’s natural resources.
Policy ED-P-7.4Policy ED-P-7.3 Continue to work on the funding,
installation, and operation of the Irondale and Port Hadlock UGA
sanitary sewer system, and investigate alternatives and opportunities
for wastewater treatment systems to serve the needs of Brinnon and
Quilcene.
Goal ED-G-8 Ensure responsive, fair, and efficient permit
processing.
Policy ED-P-8.1 Develop and maintain implementing regulations and
internal policies that ensure that development applications are
processed in a timely, fair, and predictable manner.
Policy ED-P-8.2 Ensure that permit review and requests for additional
information are fair, consistent and balanced with the needs of the
applicant and the public interest at large.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–40 Public Review Draft June 2025
7.5 ACTION PLAN
[The action plan will be updated following the release of the public draft and additional input from the
public and Planning Commission on community priorities.]
Exhibit 7-10 highlights key activities the County can use to implement
the Economic Development Element over the next eight ten years
(prior to the next periodic update), several in partnership with other
entities:
Exhibit 7-10 Economic Development Action Plan
Action Description
Workforce Development
Align education resources and
current and target industries.
▶ Through the Olympic Workforce Development Council, connect
businesses and local employers with the North Olympic Development Council (NODC) local school districts, colleges, and other educators to co-design training and re-skilling programs.
▶ Introduce educators, high school counselors and students to experiential education settings for advanced manufacturing, maritime and marine trades, and related career paths.
Diversify & Strengthen Industries
Support current and target industries that leverage existing
strengths
▶ Develop a long-term strategy for the Glen Cove Light Industrial Area addressing diversity of businesses, zoning designations, and intensification
of uses, in collaboration with the City of Port Townsend, Port of Port Townsend, and economic development stakeholders and agencies.
▶ If requested, consider rezoning Port of Port Townsend’s Quilcene Marina, currently residentially zoned property, to a public facility zoning category.
▶ Support the creation of a facility to support food production and value-added processing of agricultural products.
Placemaking for Visitors & Residents
Create an identity and brand for Jefferson County as a tourist
destination.
▶ Continue to support collaboration and partnership of the Tourism Coordinating Council with the Olympic Peninsula Tourism Commission
and local communities and agencies.
▶ Partner with Team Jefferson and other local partners to create a strategic marketing plan that highlights the assets of different communities.
Infrastructure Improvements
Make investments in
infrastructure to attract and
retain industries.
▶ Support the provision of high-quality, reliable broadband to support
industries, service provision and increase quality of life.
▶ Secure additional funds and financing to complete the Port Hadlock sewer system.
▶ Address needs for improved wastewater treatment in Brinnon and Quilcene.
▶ Develop opportunities to open new dialogue regarding LAMIRDs and how GMA regulations can be tailored to better serve rural communities with the appropriate level of needed infrastructure.
▶ Advocate for enhanced ferry service to support tourism and other sectors.
Study New Economic Opportunities
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–41 Public Review Draft June 2025
Action Description
Conduct a cooperative study into zoning for economic development
in transportation corridors.
▶ Coordinate with economic development groups to study business and economic development opportunities in highway and tourist corridors. The
study may consider highway and tourist commercial development zoning to promote economic development.
▶ The study may consider the following: assessing how to promote job
growth and economic development along highway and tourist corridors
while maintaining rural character and guarding against sprawl; access to the site for workers, tourists, and other visitors; maintaining scenic views; non-motorized transportation and recreation opportunities;, safety design for commuters, visitors freight movement, trucks, cars, and pedestrians;
node connectivity, and other topics of interest to economic development and community groups.
Source: Jefferson County, 202518.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–42 Public Review Draft June 2025
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ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–43 Public Review Draft June 2025
Remove prior intentionally blank page from PDF if needed—formatted
as a placeholder to ensure each element starts on a right hand spread.
Do not publish from this point forward. Remove pages from
consolidated PDF. These sections should be updated and copied into
their appropriate chapters (TOC, References) as needed.
References
E.D. Hovee & Company, LLC. (2010, October). Demographics. Retrieved
from EDC Team Jefferson: https://irp-
cdn.multiscreensite.com/5205be66/files/uploaded/Existing_Con
ditions_Report.pdf
EDC Team Jefferson. (2017). Strategic Priorities. Retrieved from EDC
Team Jefferson: https://www.edcteamjefferson.org/strategic-
priorities
ESD. (2017). Jefferson County Profile: County Data Tables. Retrieved
from Washington State Employment Security Department
(ESD): https://esd.wa.gov/labormarketinfo/county-
profiles/jefferson
Jefferson County. (2012). Resolution No. 01012: Joint Resolution of the
Jefferson County Board of County Commissioners, the Port
Townsend City Council. Port Townsend, Washington: Jefferson
County Board of County Commissioners. Retrieved from
http://test.co.jefferson.wa.us/WebLinkExternal/0/doc/1094760/P
age1.aspx
Jefferson County Public Health. (2017, August). Central Hood Canal
Pollution Identification and Correction Project 2017–2020.
Retrieved from Jefferson County Public Health:
https://www.co.jefferson.wa.us/DocumentCenter/View/3300/Au
gust-24th-Public-Presentation-Brinnon
North Olympic Development Council (NODC). (2016). Comprehensive
Economic Development Strategy 2011-2015. Retrieved from
Economic Development: http://www.noprcd.org/economic-
development
Port of Port Townsend. (2017). Quilcene Community Wastewater
Feasibility Study. Retrieved from Port of Port Townsend:
http://portofpt.com/current-port-projects/quilcene-community-
wastewater-feasibility-study/
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–44 Public Review Draft June 2025
Stripe, F. (2011). Irondale and Port Hadlock Sewer Project Cultural
Resource Survey. Jefferson County. Prepared by Frank Stipe
M.A. – Archaeologist. Tetra Tech, 19803 North Creek Parkway,
Bothell, WA 98011.
Team Jefferson. (2010, November). Team Jefferson Business Cluster
Report. Retrieved from Team Jefferson: https://irp-
cdn.multiscreensite.com/5205be66/files/uploaded/2010_Team_J
efferson_Business_Cluster_Report.pdf
Contents
7 ECONOMIC DEVELOPMENT 7–1
7.1 Purpose 7–4
7.2 Trends & Opportunities 7–5
Conditions & Trends 7–5
Employment & Labor Force 7–5
Economic Sectors & Major Employers 7–9
Wages 7–12
Taxable Sales Trends 7–16
Challenges & Opportunities 7–19
Strengths & Challenges 7–20
Jefferson County Economic Development
Organizations 7–22
EDC Team Jefferson 7–23
Port of Port Townsend 7–24
Washington State University 7–25
The Chamber of Jefferson County 7–25
North Hood Canal Chamber of Commerce 7–25
North Olympic Development Council (NODC) 7–25
Countywide Planning Policies 7–27
7.3 Economic Development Plan 7–28
Workforce Development 7–29
Industrial & Manufacturing Businesses 7–29
Placemaking for Visitors & Residents 7–30
Sustainable, Innovative Agricultural & Food Businesses 7–30
Infrastructure Improvements as Economic
Development Strategy 7–31
7.4 Goals & Policies 7–34
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7–45 Public Review Draft June 2025
7.5 Action Plan 7–40
Exhibit 7-1 Employment Concentration In Jefferson
County (2021) 7–6
Exhibit 7-2 Unemployment Rate (1990–2024)—National, State, and Jefferson County 7–7
Exhibit 7-3 Covered Employment Share by Sector (2002–
2022)—Jefferson County 7–10
Exhibit 7-4 Average Annual Wage by Sector (2022) 7–13
Exhibit 7-5 Inflation Adjusted Average Wage (1990–2022)—State, State Less King, and Jefferson
County 7–14
Exhibit 7-6 Sources of Personal Income (2022)—Jefferson
County vs. Statewide 7–15
Exhibit 7-7 Inflation Adjusted Annual Taxable Retail Sales (2005–2023)—Unincorporated Jefferson County 7–16
Exhibit 7-8 Inflation Adjusted Quarterly Taxable Retail Sales* (2013–2023)—Unincorporated Jefferson County 7–17
Exhibit 7-9 Estimated Employment Growth by Planning Area (2023–2045) 7–28
Exhibit 7-10 Economic Development Action Plan 7–40