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Home My WebLink About7 Economic Development HEARING DRAFTJefferson County Comprehensive Plan 7–1 Public Hearing Draft April 2026 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 northernmost 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 Hearing Draft April 2026 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 central Jefferson County and is one of the top ten most-visited national parks in the U.S. 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 Hearing Draft April 2026 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 GMA 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 productive industries also create and sustain their own type of diversified, experiential tourism activities. 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 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 community members. Economic Development Vision Statement In Jefferson County, our residents, Tribes, businesses, and public institutions share a deep commitment to place, community character, and long-term sustainability. We view economic development as a collaborative effort grounded in local values, shaped by ongoing engagement, and carried forward through partnership between the private sector, local governments, and community institutions. A resilient and equitable economy depends on both private initiative and public leadership. Businesses, entrepreneurs, and workers bring investment, innovation, and opportunity. At the same time, Jefferson County, the City of Port Townsend, the Port, and the Public Utility District help set the conditions for success by establishing a clear vision for growth consistent with adopted plans and policies; planning for appropriate land use and siting of economic activities; and ensuring that public facilities and services are available to support development 2 RCW 36.70A.070(7). ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–4 Public Hearing Draft April 2026 as it occurs. This includes coordinated investment in transportation, water, energy, and broadband infrastructure. Local governments also play a key role in providing a regulatory environment that is predictable, timely, and transparent, and in coordinating across jurisdictions to align planning, infrastructure, and economic development goals. Together, these efforts support development that is consistent with community priorities, protects natural resources, and maintains the county’s rural character and quality of life. 7.2 TRENDS & OPPORTUNITIES Conditions & Trends Employment & Labor Force 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 Jefferson County had the highest share of the population age 65 and older in Washington state with 26.3% in 2010 and 43.5% in 2024. 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 the City of Port Townsend. Clusters of employment are also concentrated in Irondale 3 ESD Covered Employment Estimates, 2023. 4 OFM Median Age, 2022. 5 ESD Jefferson County Profile, 2020. ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–5 Public Hearing Draft April 2026 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. 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, where rates of unemployment among persons between 25-55 lags behind the national rate, was recognized nationally in the August 2022 CHIPS and Science Act. Jefferson County—as part of the two-county region including Jefferson County, Clallam County, and the five sovereign tribes—applied for and received funding from the Economic Development Administration in 2024 under the Recompete program to help create and connect people in the county to good jobs (the North Olympic Peninsula Recompete Plan).6 6 U.S. Economic Development Administration Distressed Area Recompete Pilot Program (Recompete) and List of Awardees, 2025. ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–6 Public Hearing Draft April 2026 Exhibit 7-2 Unemployment Rate (1990–2024)—National, State, and Jefferson County Notes: Not seasonally adjusted. Sources: ESD LAUS, Not Seasonally Adjusted Historical Estimates, 2024; BLS Unadjusted Unemployment Rate (Series LNU04000000), March 2024; BERK, 2024. Economic Sectors & Major Employers 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 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 7–7 Public Hearing Draft April 2026 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.7 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. 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. 7 ESD Covered Employment, 2024 ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–8 Public Hearing Draft April 2026 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.8 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 and Manufacturing Industrial: Jefferson County has a strong history of natural resource extraction and manufacturing, 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, commercial 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: While occupying much less of the economy than in previous decades, 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 slow yet steady and is the focus of increasing support and interest from agricultural leaders in attracting new and expanding existing agricultural- based jobs. 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 2015. 8 U.S. Census CB2100CBP: County Business Patterns, 2021 ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–9 Public Hearing Draft April 2026 ▶ Service Based Industries: Currently, Jefferson County supports jobs in a broad range of service-based jobs and in 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 services. ▶ 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 2019.9 By 2023, direct visitor spending in Jefferson County increased to $159.9 million,10 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 2022 average annual average wage for Jefferson County was $71,094. This was below the state’s average annual wage of $102,378, as well as the state average minus King County, which was $76,544. The median hourly wage in 2022 was $27.01, less than that of the state’s median hourly wage at $32.45and for the state less King County at $27.6311 Industries with higher average wage earnings included professional, scientific, and technical services and government (Exhibit 7-4). 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). 9 Jefferson County Economic Development Existing Conditions Report, 2021. 10 Olympic Peninsula Tourism Commission, 2023 Value of Tourism to Jefferson County, 2024. 11 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. ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–10 Public Hearing Draft April 2026 Exhibit 7-4 Average Annual Wage by Sector (2022) 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, 2024. Inflation adjusted average wages in the county have been lower than the state 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 7-5. 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. ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–11 Public Hearing Draft April 2026 Exhibit 7-5 Inflation Adjusted Average Wage (1990–2022)—State, State Less King, and Jefferson County 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. ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–12 Public Hearing Draft April 2026 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 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.12 Exhibit 7-7 Inflation Adjusted Annual Taxable Retail Sales (2005–2023)—Unincorporated Jefferson County Note: Inflation adjusted to 2023 dollars. Sources: Department of Revenue Taxable Retail Sales, 2024; BERK, 2024. 12 E.D. Hovee & Company, LLC, 2010. ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–13 Public Hearing Draft April 2026 Exhibit 7-8 Inflation Adjusted Quarterly Taxable Retail Sales* (2013–2023)— Unincorporated Jefferson County Note: Inflation adjusted to 2023 dollars. Sources: Department of Revenue Taxable Retail Sales, 2024; BERK, 2024 ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–14 Public Hearing Draft April 2026 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 GMA limits opportunities for urban levels of development or urban services outside of urban areas. Planning under the GMA, Jefferson County identified development patterns in place at the time the GMA was adopted, July 1, 1990. As planning continued through the adoption of the first County Comprehensive Plan under the GMA in 1998, and subsequent years, designation of urban and rural commercial centers was completed: the Irondale and Port Hadlock UGA, designations of rural commercial and industrial districts, and outer boundaries of 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 the 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 the GMA goals with our local circumstances to maintain and grow a rural economy and preserve our rural character. Jefferson County has the opportunity to designate major industrial developments or plan industrial land banks under the GMA. The county is considering all tools available in compliance with the 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 the GMA in rural counties. Another challenge is that the state legislature, under the 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 7–15 Public Hearing Draft April 2026 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” 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 by housing costs outpacing average household incomes. ▶ Higher home prices from limited housing supply, and a scarcity of rental units with a vacancy rate of 5.8% or less as of early 2024.13 13 Washington Center for Real Estate Research, 2024. ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–16 Public Hearing Draft April 2026 ▶ 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 the 2021 Economic Existing Conditions Report,14 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. Below is a summary from the 2021 Economic Existing Conditions Report: ▶ Demographics of City of Port Townsend and Jefferson County 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 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, the resident labor force is about 1,660 less than at the 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 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 the City of Port Townsend – with unincorporated 14 E.D. Hovee & Company, LLC, 2021. ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–17 Public Hearing Draft April 2026 taxable sales exceeding the City of Port Townsend for the first time in 2019. From 2010 to 2020, the City of 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 the City of Port Townsend and from 13% to just 6% in the unincorporated area of the county. ▶ 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 or 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 Coast Opportunity Zone are building a deal “engine” of community driven projects that both ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–18 Public Hearing Draft April 2026 present good investments but also create good jobs, construct affordable and high-end housing, and support innovative entrepreneurs.15 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— 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, Northwest School of Wooden Boat Building, and 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. ▶ Healthcare—encompassing hospital, medical/clinic, and alternative health providers. 15 ESD Jefferson County profile, 2024. Herb Beck Waters, Carolyn Gallaway ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–19 Public Hearing Draft April 2026 ▶ Marine Trades—with key segments including shipwrights, outfitters, and boat services. ▶ Real Estate and Construction—including people 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 residents and visitors.16 EDC Team Jefferson has identified the following strategies:17 ▶ Retain and expand local businesses by energizing entrepreneurship and provide 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. The 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, 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 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. 16 EDC Team Jefferson, 2010. 17 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 7–20 Public Hearing Draft April 2026 Washington State University (WSU) Jefferson County Extension WSU Jefferson County Extension services and programs strongly support Jefferson County agriculturally 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 pull 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. 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. The North Olympic Development Council (NODC) The 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 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. ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–21 Public Hearing Draft April 2026 ▶ Expand tourism opportunities/revenues. ▶ Improve regional collaboration and partnerships. ▶ Advocate for natural resource and agriculture growth. ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–22 Public Hearing Draft April 2026 Countywide Planning Policies The CPP direct that this Comprehensive Plan give attention to the needs of nonservice sector businesses and industries and recognize that some businesses are best suited for location in a UGA while others may be better suited for rural areas. 1. Responsibility for creating economic opportunities in Jefferson County is shared between private sector and public sectors. Working collaboratively, private entities and local governments ensure that funds, infrastructure, planning, and development 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 nonservice sector businesses and industries as a strategy to increase wage earning potential within the community. 2. An economic development element shall be included in the County's and incorporated 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. 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 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 7–23 Public Hearing Draft April 2026 7.3 ECONOMIC DEVELOPMENT PLAN As discussed above, current employment covered by unemployment insurance is about 8,968 jobs as of 2023.18 This does not include sole proprietors, clergy, chief executives, etc. Covered employment generally represents 85-90% of total employment in communities.19 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 City of Port Townsend (Incorporated) 3,662 4,387 5,045 5,692 0.89 1,648 1,461 6,506 Jefferson County (Unincorporated) 3,824 4,581 5,268 11,159 — 2,471 2,229 7,497 County UGA Areas (Unincorporated) 1,1082 1,327 1,526 1,411 1.08 1,648 1,783 3,309 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 18 ESD Covered Employment Estimates, 2023. 19 ESD and PSRC, 2017. ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–24 Public Hearing Draft April 2026 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 based on the countywide and City of Port Townsend 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. 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, the unincorporated area of the Port Townsend UGA, the Irondale and Port Hadlock UGA, the Port Ludlow MPR, the 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 portions of the 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 Opportunities exist 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. ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–25 Public Hearing Draft April 2026 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. 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 City of Port Townsend Downtown and small-scale neighborhood business districts in the county are a place-making feature that attracts visitors and serves the local community. 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 Beaver Valley, Brinnon, Chimacum, Discovery Bay, Gardiner, Four Corners, Mats Mats, Nordland, Quilcene, and Wawa Point. The Port Ludlow and Pleasant Harbor MPRs also have parcels zoned for commercial development. Home businesses, cottage industries, and small-scale tourist and 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 2024, Jefferson County sales generated approximately $2,224,000 in state excise tax from Downtown Port Townsend, BERK Chimacum Corner Farm Stand, Jefferson County ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–26 Public Hearing Draft April 2026 cannabis sales, and the county received only $64,123 of that amount for local enforcement and health programs.20 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. The PHUGA Sewer System began operation on September 9, 2025. The Port Hadlock UGA will be able to support new affordable housing, medical facilities, higher density multifamily residences, and senior housing as well as commercial and industrial development, within areas where the PHUGA Sewer System is available, as defined in JCC 13.02.010., namely within 200 feet of an existing sewer collection line via public rights-of-way, utility easements or some other route at the discretion of the Public Works Director. This 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). 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 are typically not allowed in LAMIRDs. Per WAC 365-196- 425(4)(b), limited cases allow extension of sewer services only if it is necessary to protect basic public health and safety and the environment, is financially supportable at rural densities, and does not permit urban development. This limits wastewater improvements that 20 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. ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–27 Public Hearing Draft April 2026 would support job growth, existing commercial development, and improve existing housing stock. 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.21 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 2025. 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. Jefferson 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 the Jefferson County PUD, the City of Port Townsend, Olympic Water and Sewer Inc., among others, are participating in a 2024-2026 county- administered update to 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. 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. 21 Port of Port Townsend, 2017. Quilcene, BERK ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–28 Public Hearing Draft April 2026 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 the Jefferson County Economic Development Council Team Jefferson (EDC Team Jefferson), the North Olympic Development Council (NODC), the City of Port Townsend, the Port 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 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 In 2024, Jefferson County along with Clallam County and five sovereign tribes applied for and received funding from the Economic Development Administration under the Recompete program to help create and connect people in the county to good jobs. The North Olympic Peninsula Recompete Plan included $35 million in funding to revitalize the natural resources industries in the North Olympic Peninsula through supply chain infrastructure, scaling of innovative forest manufacturing, and various economic development initiatives to support workers and connect residents to good jobs in the natural resources industry. ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–29 Public Hearing Draft April 2026 Policy ED-P-1.5 Pursue additional ways to actively involve smaller, local businesses as well as underrepresented or marginalized communities in economic development planning to improve equitable access to opportunity and decision-making processes. Goal ED-G-2 Support a comprehensive approach to education and workforce development that prepares all residents—including youth, BIPOC, LGBTQ+, rural, and people with disabilities—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 and expand access to internships, apprenticeships, paid work experience, and job training in both traditional and emerging fields. 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-2.4 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; Related to western Jefferson County ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–30 Public Hearing Draft April 2026 — Education; — Home-based business; — Tourism and retail in centers and corridors; and — Local and Native arts. 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 Recognize 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 residents of Jefferson County. 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-3.7 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 identify and eliminate barriers to equitable business and employment growth and consider flexible and inclusive regulations that incentivize, encourage, and facilitate innovative and equitable 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. Related to western Jefferson County From the Collection of the Jefferson County Historical Society ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–31 Public Hearing Draft April 2026 Policy ED-P-4.2 Continue to work towards internal efficiencies in the application of development regulations. 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, the Port of Port Townsend, the Jefferson County 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-4.7 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. Policy ED-P-4.8 Incorporate flexible, inclusive economic policies and regulations that support small businesses, youth-run enterprises, culturally relevant services, and businesses that reflect the needs of marginalized communities, including LGBTQ+ and rural youth. 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 Examples of existing cooperatives include Jefferson Timber Cooperative, Port Townsend Shipwrights Co-op, and Peninsula Homecare Cooperative. ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–32 Public Hearing Draft April 2026 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-6.7 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 Port Townsend Wharf, Carolyn Gallaway Green jobs that promote sustainability and eco-friendly products or services can have multiple benefits to the local economy. For example, wildfire prevention efforts support the sustainable forestry and tree service sector. Tree processing adds value-added manufacturing to the local Jefferson County economy. More information on economic commercial and industrial centers can be found in the Land Use Element (see Exhibit 1-22 and Exhibit 1-24). ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–33 Public Hearing Draft April 2026 Policy ED-P-7.2 Through emergency or disaster preparedness networks such as Jefferson County Regional Emergency Preparedness Network (JPREP), promote infrastructure, including 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-7.3 Work on obtaining funding for the expansion of the PHUGA 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 development 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. 7.5 ACTION PLAN Exhibit 7-10 highlights key activities the county can use to implement the Economic Development Element over the next 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 agriculture, advanced manufacturing, maritime and marine trades, and related career paths. Diversify & Strengthen Industries ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–34 Public Hearing Draft April 2026 Action Description 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, the Port of Port Townsend, and economic development stakeholders and agencies. If requested, consider rezoning the Port of Port Townsend’s Quilcene Marina, currently residentially zoned property, to a public facility zoning category. Support storage and processing facilities to increase food production, add value to agricultural products, and reduce agricultural waste by both augmenting on-farm capabilities and fostering larger collaborative facilities. Placemaking for Visitors & Residents Strengthen branding for Jefferson County communities 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 expand 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 the GMA can be amended 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 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, 2025. ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–35 Public Hearing Draft April 2026 [ This page intentionally blank ] ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–36 Public Hearing Draft April 2026 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). Jefferson County Joint Economic Development Planning: Existing Conditions Report. Prepared for: Jefferson County, City of Port Townsend, Port of Port Townsend. Retrieved from EDC Team Jefferson: https://irp- cdn.multiscreensite.com/5205be66/files/uploaded/Existing_Conditions_Report.pdf E.D. Hovee & Company, LLC. (2021). Jefferson County Economic Development Existing Conditions Report. Prepared for EDC Team Jefferson. EDC Team Jefferson. (2010). Business Cluster Report. Retrieved from https://irp- cdn.multiscreensite.com/5205be66/files/uploaded/2010_Team_Jefferson_Business_Cluster_Rep ort.pdf EDC Team Jefferson. (2017). Strategic Priorities. Retrieved from EDC Team Jefferson: https://www.edcteamjefferson.org/strategic-priorities Jefferson County. (2012). Jefferson County Resolution No. 01-12: 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/Page1.aspx Jefferson County Treasurer. (2025, January). December 2024 Revenue Report. Retrieved from https://test.co.jefferson.wa.us/WeblinkExternal/0,0,0,0,0/edoc/9446857/2024- 12_DECEMBER_Treasurer_RevenueReports.pdf North Hood Canal Chamber of Commerce. (2025). Visitor Center. Retrieved from https://emeraldtowns.com/home/chamber/visitors-center/ North Olympic Development Council (NODC). (2016). Comprehensive Economic Development Strategy 2011-2015. Retrieved from Economic Development: http://www.noprcd.org/economic- development Olympic Peninsula Tourism Commission. (2024). 2023 Value of Tourism to Jefferson County. Retrieved from https://olympicpeninsula.org/wp-content/uploads/2024/07/Value-of-Tourism-to-Jefferson- County-2023.pdf 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/ Port of Port Townsend. (2024). Port of Port Townsend Home Page. Retrieved from http://portofpt.com/ ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–37 Public Hearing Draft April 2026 U.S. Bureau of Economic Analysis (BEA). (2022). Economic Profile for Jefferson. Retrieved from https://apps.bea.gov/regional/bearfacts/?_gl=1*qstgom*_ga*MTkyNzg2ODQ2MC4xNzE4NzM1OD Az*_ga_J4698JNNFT*MTcxODczNTgwMi4xLjEuMTcxODczNjEzMC42MC4wLjA. U.S. Bureau of Labor Statistics (BLS). (2024, March). Unadjusted Unemployment Rate (Series LNU04000000). Retrieved from BLS Data Viewer: https://data.bls.gov/dataViewer/view/timeseries/LNU04000000 U.S. Census. (2021). County Business Patterns (CB2100CBP). Retrieved from https://data.census.gov/table?q=jefferson%20county%20washington%20CB2100CBP&g=050XX0 0US53031&y=2021 U.S. Census Bureau. (2022). OnTheMap. Retrieved from LEHD Origin-Destination Employment Statistics: https://onthemap.ces.census.gov/ U.S. Economic Development Administration. (2025). Distressed Area Recompete Pilot Program (Recompete). Retrieved from EDA Program List: https://www.eda.gov/funding/programs/recompete-pilot-program U.S. Economic Development Administration. (2025). List of Recompete Pilot Program Awardees. Retrieved from https://www.eda.gov/funding/programs/recompete-pilot-program/2023 U.S. Economic Development Administration. (2025). North Olympic Peninsula Recompete Plan. Retrieved from Recompete Awardees, Finalists, and Strategy Development Grant Recipients: https://www.eda.gov/funding/programs/recompete-pilot-program/2023/North-Olympic- Peninsula-Recompete-Plan University of Washington Center for Real Estate Research (WCRER). (2024). City and County Rental Data. Retrieved from https://wcrer.be.uw.edu/housing-market-data-toolkit/rental-market/ Washington State Department of Commerce (Commerce). (2024). Economic Recovery Dashboard. Retrieved from EDC Team Jefferson: https://www.edcteamjefferson.org/economic-recovery- dashboard Washington State Department of Commerce (Commerce). (2024). Housing for All Planning Tool (HAPT). Retrieved from Updating GMA Housing Elements: https://www.commerce.wa.gov/growth- management/housing-planning/housing-guidance/ Washington State Department of Revenue (DOR). (2024). Taxable Retail Sales. Retrieved from https://apps.dor.wa.gov/ResearchStats/Content/TaxableRetailSalesLocal/Report.aspx Washington State Employment Security Department (ESD). (2020). Jefferson County Profile. Retrieved from https://esd.wa.gov/jobs-and-training/labor-market-information/reports-and- research/labor-market-county-profiles/jefferson-county-profile Washington State Employment Security Department (ESD). (2021-2023). Covered Employment Estimates (QCEW). Retrieved from https://esd.wa.gov/labormarketinfo/covered-employment Washington State Employment Security Department (ESD). (2022). Median, Average, and Hourly Wages. Retrieved from https://esd.wa.gov/labormarketinfo/median-hourly-wages Washington State Employment Security Department (ESD). (2024). Jefferson County Profile: County Data Tables. Retrieved from https://esd.wa.gov/labormarketinfo/county-profiles/jefferson ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–38 Public Hearing Draft April 2026 Washington State Employment Security Department (ESD). (2024). Labor force (LAUS): Not Seasonally Adjusted Historical Estimates. Retrieved from https://esd.wa.gov/jobs-and-training/labor- market-information/labor-force-and-unemployment/labor-force-laus Washington State Employment Security Department (ESD) and PSRC. (2017, October). 2016 Covered Employment Estimates by Jurisdiction. Seattle, WA. Retrieved from https://psrc- psregcncl.hub.arcgis.com/datasets/PSREGCNCL::covered-employment-by-city-major- sector/about Washington State Liquor and Cannabis Board. (2024). Fiscal Year Cannabis Sales and Excise Tax by County. Retrieved from https://lcb.wa.gov/records/frequently-requested-lists Washington State Office of Financial Management (OFM). (2022). Population by Age, Mapped by County. Retrieved from https://ofm.wa.gov/washington-data-research/statewide- data/washington-trends/population-changes/population-age-mapped-county Washington State University (WSU). (2025). WSU Jefferson County Extension. Retrieved from http://extension.wsu.edu/jefferson/ Contents 7 ECONOMIC DEVELOPMENT 7–1 7.1 Purpose 7–3 7.2 Trends & Opportunities 7–4 Conditions & Trends 7–4 Employment & Labor Force 7–4 Economic Sectors & Major Employers 7–6 Wages 7–9 Taxable Sales Trends 7–12 Challenges & Opportunities 7–14 Strengths & Challenges 7–15 Jefferson County Economic Development Organizations 7–17 EDC Team Jefferson 7–18 Port of Port Townsend 7–19 Washington State University 7–20 North Hood Canal Chamber of Commerce 7–20 North Olympic Development Council (NODC) 7–20 Countywide Planning Policies 7–22 7.3 Economic Development Plan 7–23 Workforce Development 7–24 Industrial & Manufacturing Businesses 7–24 ECONOMIC DEVELOPMENT Jefferson County Comprehensive Plan 7–39 Public Hearing Draft April 2026 Placemaking for Visitors & Residents 7–25 Sustainable, Innovative Agricultural & Food Businesses 7–25 Infrastructure Improvements as Economic Development Strategy 7–26 7.4 Goals & Policies 7–28 7.5 Action Plan 7–33 Exhibit 7-1 Employment Concentration In Jefferson County (2021) 7–5 Exhibit 7-2 Unemployment Rate (1990–2024)—National, State, and Jefferson County 7–6 Exhibit 7-3 Covered Employment Share by Sector (2002–2022)—Jefferson County 7–7 Exhibit 7-4 Average Annual Wage by Sector (2022) 7–10 Exhibit 7-5 Inflation Adjusted Average Wage (1990– 2022)—State, State Less King, and Jefferson County 7–11 Exhibit 7-6 Sources of Personal Income (2022)—Jefferson County vs. Statewide 7–11 Exhibit 7-7 Inflation Adjusted Annual Taxable Retail Sales (2005–2023)—Unincorporated Jefferson County 7–12 Exhibit 7-8 Inflation Adjusted Quarterly Taxable Retail Sales* (2013–2023)—Unincorporated Jefferson County 7–13 Exhibit 7-9 Estimated Employment Growth by Planning Area (2023–2045) 7–23 Exhibit 7-10 Economic Development Action Plan 7–33