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Port Townsend. WA 98368
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DOCUMENT TITLE
Inter-Jurisdictional Coordination ofRegional Economic Develonment Committee
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City Resolution j 2..- 00Z.
County Resolution 0 I - \'2
Port Resolution 571-11
Page 1 of4
STATE OF WASHINGTON
County of Jefferson
City of Port Townsend
Port of Port Townsend
Joint Resolution of the Jefferson
County Board of County Commissioners
the Port Townsend City Council, and the
Port of Port Townsend Port Commission
Approving a Process to Coordinate and
Promote Enhanced Inter-jurisdictional
Coordination in Regards to Regional
Economic Development Committee
County Resolution No. 0 \ - \2-
City Resolution No. I '2... - 002-
Port Resolution No. 571-11
The Board of County Commissioners (BoCC) of Jefferson County, Washington, the City
Council of Port Townsend, Washington, and the Port Commission for the Port of Port
Townsend, Washington, do hereby jointly resolve as follows:
WHEREAS, concern over the impacts of a weakened global, national and local
economy on the local community and the ability of the County, City and Port to provide
important services, has prompted the three jurisdictions to look for new ways to
cooperate as local governments; and
WHEREAS, the three jurisdictions understand the urgent need to more effectively
coordinate their activities and more efficiently deliver services to meet community
needs; and
WHEREAS, in Fall 2009, the rezoning of rural light industrial land at the Jefferson
County International Airport highlighted the need for the County, City and Port to
improve their intergovernmental communication and better coordinate their economic
development efforts; and
WHEREAS, in May of 2010 a "Joint Planning Agreement" was signed whereby the three
jurisdictions committed to developing a coordinated strategy for sustainable economic
development; the Agreement identified a three part process that included: the
collection and analysis of economic data to provide an accurate "snapshot" of the
current state of the local economy; the development of a shared economic vision that
would provide guidance to the three jurisdictions in identifying priorities; and the
development of complimentary policies and action steps that would help focus efforts in
a coordinated manner; and
City Resolution
County Resolution DI-I"Z..
Port Resolution 571-11
Page 2 of4
WHEREAS, an Inter-jurisdictional Elected Working Group (the Working Group)
comprised of an elected official and staff from each jurisdiction and Team Jefferson has
met monthly to implement the process and advance the development of a coordinated
economic strategy; and
WHEREAS, baseline economic data was independently collected by E.D. Hovee &
Company to allow informed choices regarding economic development policies and
infrastructure priorities; and
WHEREAS, the Working Group has reviewed the baseline data and proceeded to
develop a Draft Joint Economic Development Strategy; and
WHEREAS, it has become apparent that the forecast for economic recovery has
dimmed since the joint economic development planning process was initiated in the
spring of 2010, and most projections now suggest that the "recovery" is "L" shaped with
substantial economic rebound occurring in an undefined, indefinite future; and
WHEREAS, the likelihood that State and Federal funding will retum to levels resembling
the period prior to the "great recession" has greatly diminished, and obtaining federal
and state funding for significant new capital projects is more difficult; and
WHEREAS, as the ability of state and local government to fund new infrastructure and
services has decreased, while many in the community are looking to government to
help solve economic problems; and
WHEREAS, the Working Group has prepared a Draft Joint Economic Development
Strategy (attached as Exhibit 1) that reflects the collaborative efforts of the three
jurisdictions to date; and
WHEREAS, although the Draft Economic Development Strategy prepared to date is a
good starting point, changed circumstances require careful refinement in light of the
changing economic environment, and the Working Group recommends that the three
jurisdictions continue working closely together to maximize the likelihood for success;
and
WHEREAS, the Working Group has identified a process that will allow continued
communication and coordination between the jurisdictions for future adoption of a Joint
Economic Development Strategy setting forth objectives, strategies and a prioritized list
of major regional capital projects and policy initiatives; and
WHEREAS, the Working Group has concluded that it is critical for the economic health
of the County that the three jurisdictions and the Working Group continue to meet
regularly, and communicate more frequently and effectively;
I. Project Background
Sometimes we stare so long at a door that is closing that we
see too late the one that is open. n - Alexander Graham Bell -
In the autumn of 2009, the rezoning of rural light industrial land at the Jefferson County
Intemational Airport highlighted the need for the County, City and Port to improve their
intergovernmental communication and better coordinate their economic development
efforts. At the same time, the impacts of the 'Great Recession" - on our communities,
families, and the ability of the County, City and Port to provide important services -
underscored the need for local government to more efficiently deliver services to meet
community needs.
Through a "Joint Planning Agreement" signed by the parties in May of 2010, the
jurisdictions committed themselves to developing a coordinated strategy for sustainable
economic development. It was agreed that the process should address three key
areas:
Data Collection & Analysis;
Development of a Common Economic Development Vision; and
Development of Complimentary Policies & Action Steps.
In response to this agreed upon framework, baseline economic data was independently
collected by E.D. Hovee& Company to allow informed choices regarding economic
development policies and infrastructure priorities (see Section II, "Current Economic
Conditions"). Next, an economic development vision and goals were prepared as a
critically important step prior to preparing policies and implementation actions (see
Section III, "Our Shared Mission & Economic Vision"). Finally, specific Objectives and
Strategies (see Section IV), as well as a list of potential Joint Regional Economic
Development Projects, were developed to help guide intergovernmental decision-
making into the future (see Section V).
This Joint Draft Economic Development Strategy is the product of considerable
collaborative effort between the County, City, Port and Team Jefferson. However, it
remains very much a working draft. In substantial part, this is due to the protracted
nature of the current recession, and the implications it holds for the provision of local
government services as we look ahead. Although economists tell us the recession
technically ended two years ago, it's clear that the difficult times are far from over. For
many local governments, operating revenues are down and reserve funds are being
tapped. Even Moody's has called 2011 the "toughest year for local governments since
the economic downtum began." Jefferson County, the City of Port Townsend, the Port
of Port Townsend, and our community as a whole, is struggling to come to grips with
this "new normal."
JOINT ECONOMIC
DEVELOPMENT STRATEGY 1
WORKING DRAFT
DECEMBER 14, 2011
II. Current Economic Conditions
Background
In the summer of2010, E.D. Hovee& Company was hired to collect and analyze local
economic data and prepare an "Economic Existing Conditions Report" to provide the
factual basis for the joint planning effort. On October 28, 2010, Mr. Hovee presented
his findings and written report at an inter-jurisdictional meeting ofthe County, City and
Port. The text within this section is drawn substantially from the Executive Summary
provided in the E.D. Hovee report; the full text of the report is included in Appendix "A."
A major part of the review was to summarize economic planning work already
conducted for Jefferson County in recent years - followed by an updating the
demographic and economic indicators as of 2009-201 O.
Prior Economic Assessments.Two major assessments have been conducted over the
past decade:
In 2002, a Jefferson County Economic Assessment was completed by the
University of Washington School of Public Affairs (Paul Sommers). The report
reviewed key trends at the time - noting that. Jefferson County's economy is
transitioning from a reliance on forestry, wood products, fishing and other marine-
related industries to one based on retirement, tourism, and linkages to the 'new
economy' in the Seattle area." Stakeholder interviews and a business survey
were conducted and a series of industry clusters recommended as a means to
organize local economic development initiatives. The clusters recommended by
Sommers in 2002 coincide well (albeit with some revision) with the business
sectors recently profiled through updated 2010 analysis by Team Jefferson.
In 2007, E.D. Hovee and company, LLC was retained to prepare a countywide
industrial commercial land inventory, infrastructure assets and economic
development analysis. A business needs questionnaire was distributed to 1,290
businesses throughout Jefferson County. Three altemative scenarios were
prepared to illustrate potential employment and accompanying land needs for
Jefferson County over a 20-year forecast horizon (2007-27) - including
extrapolation of the exiting job trends, an altemative for jobs-housing balance,
and a third scenario associated with a jobs premium for selected target industry
sectors.
Updated Economic Indicators. As of2010, Jefferson County has a population
estimated at 29,300. As the county's only incorporated city, Port Townsend's 8,945
residents account for less than one-third (30.5%) of population countywide. In the past
decade, population countywide has increased by about 11% (+3,000 residents), a rate
of growth below the statewide increase of 14%. Other indicators of note include the
following:
JOINT ECONOMIC
DEVELOPMENT STRATEGY 3
WORKING DRAFT
DECEMBER 14. 2011
Port Townsend and Jefferson County residents tend to have lower households
incomes but higher housing prices and higher levels of education than is typical
throughout the rest of the state.
As of 2009, Jefferson County had an estimated 1,070 firms employing more than
8,200 workers. The average annual wage is just under $31,700 per employee
33% below the statewide average of $47,500).
From 2002 to 2009, the number of firms in Jefferson County declined (by 0.8%
annually), the total number of jobs have remained essentially flat (reflecting
substantial job losses from 2008-09), but average wages have increased at a
moderate pace (averaging 3.4% annual gains).
When adjusted for inflation, median wages for workers in Jefferson County have
increased at a much more modest rate averaging less than 1 % per year since
1990 - with wages peaking in 2005, before the most recent economic downturn.
Compared to the rest of the state, Jefferson County wage levels appear to be
disproportionately and adversely affected during recessionary time periods - as
in 2001 and again in 2007-08.
When measured by number of employees, government represents the largest
overall sector with over 2,100 employees, as is the case statewide. The only
other sectors with more than 900 jobs in Jefferson County are accommodations!
food services, retail, and health care social assistance. Taken together, these
four industry sectors account for nearly 5,050 jobs - more than 60% of total
employment in Jefferson County.
Over the last several years, unemployment rates have nearly doubled and have
remained high - 8.6% for Jefferson County and 8.9% for the State of
Washington as of August 2010, and 9.3% for both the County and State as of
August 2011.
Wage and salary sources account for a declining 30% share of total personal
income in Jefferson County - a much lower proportion than statewide.
Comparatively high proportions of personal income locally are investment and
transfer payments.
Taxable retail sales have increased in roughly similar fashion for the City and
unincorporated County area over the last 15 years - but with much greater year-
to-year variability for the County. This is due to greater reliance on construction
activity outside the City - with a substantial downturn in activity experienced from
2008-09.
Tourism is of considerable importance - accounting for about 18% of the job
base countywide. On a per capita basis, visitor spending is better than 50%
JOINT ECONOMIC
DEVELOPMENT STRATEGY 4
WORKING DRAFT
DECEMBER 14, 2011
above the statewide per capita average but appears to be increasing more slowly
than statewide.
Due to the county's small population base, Jefferson County appears to offer
potential for added retail activity across virtually all business types except health
and personal care. Retail sales volumes compared to resident generated needs
currently appear strongest with retail categories for which visitor expenditures
serve to offset at least a portion of the sales leakage than can occur when local
residents travel outside the county to shop.
Regional & Local Position of County, City & Port
A second objective of the Existing Economic Conditions Report was to begin the
discussion of how economic changes globally, nationally, statewide and/or regionally
might affect earlier conclusions and recommendations of the 2002 and 2007 countywide
economic analysis.
Patterns of Economic Change. This analysis distinguishes between patterns of
change being experienced globally, nationally, statewide and regionally - with further
distinction between unanticipated changes brought on by the current economic
downturn and longer term changes that can be expected post-recover over the next 10-
20 years, notably:
A. WIth Economic Downturn (& Early Phase Recovery):
Financial Market Retrenchment - related to financial deleveraging,
tightened consumer and business credit, and pUblic sector
intervention;
Jobless Recovery? - reflecting sectoral and location specific job loss
with minimal expectations for substantial recovery now extending
beyond 2011; and
Stalled Development - including construction shut-down, declining
home and investment real estate values.
B. Post-Economic Recovery (Over 10-20 Years)
Financial Market Restructuring - with more conservative underwriting
and emerging public sector fiscal stress;
Changing Competitive Advantage - with competitive positioning
favoring global pathways of economic opportunity;
Emerging Economic & Demographic Drivers - for targeted
employment amid ongoing economic instability, aging demographics
and urbanization;
Environmental & Infrastructure Drivers - including impetus for
alternative energy, going green, and hard and soft infrastructure
needs; and
JOINT ECONOMIC
DEVELOPMENT STRATEGY 5
WORKING DRAFT
DECEMBER 14, 2011
Changing Development Paradigm - affecting development feasibility,
real estate chum, and residential and commercial development
products.
For Jefferson County, the determination of which global patterns - including both
challenges and opportunities - will be of greatest importance may represent a key topic
of discussion as part of the strategic economic development planning and
implementation process now underway. Two areas of added focus are highlighted in
the Economic Existing Conditions Report - the changing face of American employment
and aging demographics:
With the exception of the five year period ending in 2015, when faster job growth
nationally is forecast with economic recovery, at no other point through 2035 is
employment growth domestically expected to again come close to the high
growth experienced in the 1980s and 1990s. Since 1985, employment growth in
the state of Washington has increased more rapidly than nationally, though the
in-state advantage in performance has narrowed since 2000.
A second emerging trend of note is demographic. For at least the next 15 years,
persons 55 years of age and older will represent the bulk of net population and
household growth in the state of Washington. This trend can be expected to
affect the economy in ways ranging from housing demand to retail sales to labor
force replacement and health care demand. A pivotal policy and marketing
question for non-metro areas is over the ability to attract and retain a balanced
mix of younger households versus potential service demands associated with an
aging population.
Washington State & the "Innovation Economy." For the State of Washington, a
major shift in economic development emphasis in indicated by the 2009 report of the
Washington Economic Development Commission which advocates a shift from what
has been described as a traditional approach to economic development to an innovation
based economy. This approach suggests investing in talent and infrastructure rather
than focusing primarily on attracting companies - and in quality of jobs and per capita
incomes rather than simply increasing the number of jobs. For rural communities of the
state, investing in internet broadband capability appears to be of increased importance
for functions ranging from e-commerce to distance learning and telemedicine to
telecommuting and business development.
While recognizing economic cluster analysis that has been conducted on a statewide
level in the past, this new strategic approach focuses less on clusters and more
outcomes - in terms of "high growth, high employment, traded sectors" offering realistic
potential to bring new wealth into the state and its communities. However, the strategy
does call out specific opportunities for job growth and improvement in sectors including
tourism, aerospace and clean energy - together with possible new sectors such as life
sciences, information technology, and electronic gaming.
JOINT ECONOMIC
DEVELOPMENT STRATEGY 6
WORKING DRAFT
DECEMBER 14, 2011
is focusing on four key local economic development initiatives - to energize
entrepreneurs, attract 18-35 year-old emerging entrepreneurs, encourage
community reinvestment, and developing community leadership. EDCrream
Jefferson has also recently conducted an analysis of key business clusters for
priority emphasis in Jefferson County - including advanced technology and
manufacturing, arts and culture, education, small business and entrepreneurship,
food and farm, health care, maritime, real estate and construction, and tourism
and retail activities.
Economic Data Assessment
The economic data presented with the Economic Existing Conditions Report (see
Appendix "A," attached), together with other immediately available resources provided a
reasonable basis for proceeding with the joint economic development planning process.
While there appears to be a good repository of existing data, additional economic data
research and analysis could be considered to:
Address specific questions or provide more in-depth information if requested
during the planning process - with possible options including more detailed
employment analysis (as for sub-county geographies and/or target business
sectors), more detailed demographic and/or housing (including affordability)
analysis, and/or benchmark comparison with similar rural amenity communities.
Added update opportunities could encompass such items as incorporation of
2010 U.S. Census results, updated business survey, adjusted employment and
associated land demand scenarios, GIS land inventory updating, and/or
preparation of an economic development element in conjunction with the next
update of County and City comprehensive plans under the Growth Management
Act (GMA).
Assessment of Strengths, Weaknesses, Opportunities & Threats
A final objective of the Economic Existing Conditions Report was to provide a
preliminary assessment of strengths, weaknesses, opportunities and threats (or SWOT)
affecting the local economy. This preliminary assessment was based upon information
compiled from the economic indicator, global to local and data gap assessments
provided as part of the baseline report.
Strengths & Weaknesses. Economic strengths and weaknesses reflect existing
conditions and trends. Countywide strengths include quality of life appeal, proximity to
the Seattle metro area, being a recognized visitor destination and having a high
proportion of non-locally generated income.
Countervailing weaknesses include relatively high and growing service sector needs,
long travel times to Puget Sound urban centers, vulnerability to transportation
disruptions, and a relatively low wage economy. More specific strengths and
JOINT ECONOMIC
DEVELOPMENT STRATEGY 8
WORKING DRAFT
DECEMBER 14, 2011
weaknesses are noted for the County, City and Port in the full report (see Appendix "A,"
attached).
Opportunities & Threats. Identified opportunities and threats are forward looking,
reflecting a combination of locally determined initiatives plus economic drivers extemal
to Jefferson County. Opportunities of potential importance countywide include value-
added visitor services, retirement-related services, advanced technology with
broadband capability, and developing/expanding green industries that promote
environmental quality and sustainability.
Potential threats that could serve to undermine future opportunities include possible
over-clependence on mature travelers, added retiree demands on public services,
distance from markets and direct business-to-business client contacts affecting
desirability of doing business in Jefferson County, and added costs or uncertainties
associated with green development.
JOINT ECONOMIC
DEVELOPMENT STRATEGY 9
WORKING DRAFT
DECEMBER 14, 2011
III. Our Shared Purpose, Values & Vision
The economic health of our community is most effectively pursued in partnership. This
strategy aims to clearly articulate our shared economic mission, and the values that
guide us as we work to accomplish our mission.
OUf Purpose
Ourpurpose is to support and promote a prosperous and sustainable economy,
a vibrant business environment, and goodjob opportunities for the residents of
our community.
OUf Values
Shared by all three economic development partners, these values shape and guide us
as we work together to serve the wider Jefferson County community:
Respect-We respect each other as individuals, listen to understand, and seek to enrich
the lives of those with whom we work.
Integrity -We never compromise our integrity. To be honest, sincere and reliable is the
way we earn each other's trust and build long-term relationships to serve the
community.
Team - We work together, inspire each other and praise each other's successes.
OUf Vision
In JeffersonCounty, our citizens, 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 achieve their potential - and they can also assist in
preserving those aspects of our community's character and natural environment that
make this place unique.
Through this Strategy, the County, City and Port are focusing their efforts on three keys
for our economic future:
JOINT ECONOMIC
DEVELOPMENT STRATEGY 10
WORKING DRAFT
DECEMBER 14, 2011
V. Potential Regional Economic Development Projects
PROJECT DESCRIPTIONS
Working together the County, City and Port have developed a list of Regional Economic
Development Projects: 14 capital projects and 8 policy initiatives. Brief descriptions of
these projects are provided below.
Potential Regional Capital Projects
Broadband - Install fiber and wireless high speed internet to 36 anchor institutions, then
private ISP's.
Fort Worden Life Long Learning Center - Support the implementation of the adopted
Fort Worden Master Plan that will transform the park into a Center for Life-long
Learning. As a Life-long Learning Center, Fort Worden State Park would house a
variety of tenants and groups that would offer residential programs and classes.
Boat Haven Marine Trades Building - Redevelop the prior Port Townsend Lumber site
within the Port Townsend Boat Haven to accommodate a new purpose built, multiple
tenant marine trades building.
Passenger Only Ferry Service (PoF) - Fund and establish a PoF service between Port
Townsend and Seattle. Recently obtained federal funding enables vessel purchase,
and Point Hudson terminal improvements. The project would establish a direct maritime
transportation link between Jefferson County and the Seattle metro area, facilitating
both business connections for Jefferson County residents and enhanced visitor access
by Seattleites to Port Townsend.
Port Hadlock UGA Wastewater System - Final system design, land acquisition, and
installation of wastewater collection and treatment facilities for the UGA. Upon
completion, the project is expected to provide increased opportunities for affordable
housing as well as commercial activity to help recapture retail sales leakage.
JCIAlEPF Eco-Industrial Park Permitting & Infrastructure - Final design, permitting
and construction of up to 10 lease-able light industrial lots in a park-like setting,
provided with all necessary rural infrastructure. At full build-out and occupancy, the new
Eco-Industrial Park would provide the space for the private sector to create 50-100+
new manufacturing jobs in East Jefferson County.
Potential Regional Policy Initiatives
Small Business Rapid Response Team" - Establishment of a team to help open
doors for local businesses considering locating or expanding in the County or City; the
team would provide assistance and support to businesses in securing regulatory
approvals from the County or City. The team is intended to deliver the message that
JOINT ECONOMIC WORKING DRAFT
DEVELOPMENT STRATEGY 16 DECEMBER 14, 2011
Jefferson County, the City of Port Townsend, and the Port of Port Townsend are open
and welcoming to new and expanding businesses.
Permit Streamlining Review & Assessment - Critical review and, if necessary,
amendment to local permit processes and/or regulations to ensure that development
applications are processed in the most fair, timely and predictable manner possible, and
that delays and confusion of process do not act as a disincentive to business.
Business Leader "Blue Ribbon" Committee - Convene a "Blue Ribbon" Committee of
local business leaders (with an emphasis on manufacturing) to study and provide non-
binding recommendations to local govemment regarding the specific land use and
infrastructure needs of businesses. The findings of the committee would be factored
into the Glen Cove potential UGA expansion study (see below), as well as the ongoing
periodic reviews and assessments of local plans and zoning codes, with a view towards
streamlining and easing the development review and permitting process.
Glen Cove UGA Expansion Study - Establish the analytical and infrastructure
planning foundation for expansion of the Port Townsend UGA into Glen Cove. The
study would likely not be initiated for a period of years, pending a strengthening of the
local economy. Making better use of available industrial land in Glen Cove through
redevelopment and intensified use, as well as creating new fully served industrial land,
is critical to our economic future; in time, the project could result in significant new
opportunities for businesses, as well as expansion of existing enterprises.
Water Supply & Demand Study - Examine opportunities to address water
supply/demand issues in WRIA 17. A reliable secure water supply is essential for
residential, commercial and industrial activities including agricultural production.
Education Initiative - Working with local School Districts, private schools, the Jefferson
Higher Education Committee and other local and state agencies, the City, County and
Port participate as founding partners in the Jefferson County Educational Partnership
JCEP). The JCEP acknowledges that a strong educational system is directly linked to
a healthy local economy. The JCEP seeks to inspire cMc involvement by building
partnerships and engaging in activities that benefit the community. The JCEP is
committed to helping students become competent, creative and constructive citizens of
our community. The JCEP believes that strong public sector and business support for
education makes schools more effective and society more prosperous. The members
of the JCEP shares resources with students and schools in the following ways:
Providing real-world leaming experiences;
Supporting teachers;
Offering opportunities for students and teachers to volunteer in support of non-
profit institutions; and
Preparing students for the workforce through intemships, mentorships, and
career education.
JOINT ECONOMIC
DEVELOPMENT STRATEGY 17
WORKING DRAFT
DECEMBER 14, 2011
Healthcare Needs Assessment - The next few years will be times of considerable
stress on health care in areas like Jefferson County, but also times of great opportunity,
since across the country there are already impressive examples of high-quality care,
tailored to the distinctive needs of the local exurban and rural communities. The City,
County and Port will assist the Hospital District in assessing both medium and long term
health care needs facing our community through coordinated demographic analysis and
focused population forecasting.
Non-Profit Shared Operations Initiative - Acknowledging the importance of
educational not-for-profit's (i.e. Centrum, School of Wooden Boat Building, Jefferson
County Historical Society, etc.) to both the quality of life and economic vitality of the
County and to enhance their continued economic viability, the City, County and Port
agree to encourage and assist in the development of a shared services model of
operations. Shared services are defined as physical resources, staff, and programs
which are governed and allocated across traditional organizational boundaries.
POTENTIAL PROJECT EVALUATION CRITERIA
Projects will be added to or deleted from the list to reflect changing opportunities and
economic circumstances. Potential project evaluation criteria may include, but are not
necessarily limited to the following:
1. Quick Action - with preference for projects that would have an immediate or
near term impact over those with longer term or less certain timelines for
implementation.
2. Direct Impact - with projects creating long-term jObs or tax base directly in
proximity to the location of the planned project favored over alternatives where
impacts are indirect (or cannot be as clearly tied to the public project investment).
3. Jobs - with emphasis on projects that create net added permanent employment
or are deemed critically important to retain existing jobs.
4. Priority Target - meaning investments that can leverage high priority economic
sectors, high wages and lor added taxable property valuation. [Note: High
priority economic sectors have been defined by the draft Joint Economic
Development Strategy to include high technology (innovation and knowledge
based businesses); amenity based businesses (i.e., tourism arts and culture);
small manufacturing (e.g., maritime related); and agriculture.]
5. Private Interest - indicated by projects with demonstrated capacity to leverage
private investment andlor have clear expressions of business community
support.
6. Community Support - indicated through adoption or official endorsement of the
project by elected representatives of the County, City andlor Port, or as
JOINT ECONOMIC
DEVELOPMENT STRATEGY 18
WORKING DRAFT
DECEMBER 14, 2011
demonstrated via clear community support through a public planning hearing
process.
The projects might then be evaluated and scored on a three level rating system, as
follows; .
Definite I Very Likely
o = Possible I Uncertain
x= Not Likely I Tangential
A mor~ detailed description of how the evaluation criteria and rating system might be
applied is provided in Figure #2, below. The table on page 20. depicts the matrix
whereby the Joint Regional Projects could be evaluated and ranked.
Figure #2
ECONOMIC DEVELOPMENT PROJECTS: POTENTIAL RATING SYSTEM
Rating
ScheJmt
Quick Action Direct Jobs
Impactlli:~29~~c;-, ;,;;'C -'<;;"l"\i;:*1W;~itti; _~;
Ready for DIrect (at the Deflnlte new or
bmnedlate project site or In ' retalned
lmplemen1llllon . immediate permanentjobs
proximity to the
Investment)
Priority
Target
Deflnltelargeted
sector or high
wage and property
value
DefInlle 1
Very likely
6'" /" t.ong.fi' ,,-...
Unc:erlalll ,lmjJit.,,e,.l;:divn
Joblikelihood
um::erlaIn orof
empOflllY
dI\Ia1lon
PossIblelargeted
sector orhigh
wageand propelly
value
hid!lecl (located
tWffrom the
Investment as
spilloverbenefit)
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K,(:~1~\i%il:il;:i~;,:;~t;~,;~~}f:~@t~l~f<~;;;t~t;~s~*~~I};
x" Not LIkely1 Asyetunoortaln Tangential or no Unlikely new or UnUkely target or
TanganlfaJ apparent retained high
Unkage permanentjobs wageIvaIuatlon
Private
Interest
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JOINT ECONOMIC
DEVELOPMENT STRATEGY 19
WORKING DRAFT
DECEMBER 14.2011
v. Implementation
The success of this strategy requires alignment of goals and funding priorities between
the three partner jurisdictions. The County, City and Port will collaborate with the
designated Associate Development Organization (ADO) and private sector partners
throughout the community to implement this Strategy. Oversight and implementation of
the Strategy will be managed by a Working Group of Elected officials, comprised of one
elected official from each of the three partner jurisdictions, in consultation with the ADO,
as described below.
Elected Officials Working Group - Made of up one elected official from the Board of
County Commissioners, City Council and Port Commission, the Working Group will
oversee the implementation of the Strategy and assess the collective progress of the
three jurisdictions in meeting the objectives of the Strategy.
Inter-Jurisdictional Staff Team - Comprised of the County Administrator, City Manager,
the Port Executive Director, the Executive Director of the ADO and their respective
staffs, the Inter-Jurisdictional Staff Team will meet monthly to inform each other of
significant issues that may affect the other jurisdictions, and to work to implement the
objectives and high priority projects outlined in this Strategy.
Associate Development Organization (ADO) - the ADO will attend and participate in all
Elected Officials Working Group and Inter-Jurisdictional Staff Team meetings, ensuring
that local business community interests are represented, and providing facilitation
support and meeting moderation, as may be appropriate.
REMAINDER OF CHAPTER RESERVED
JOINT ECONOMIC
DEVELOPMENT STRATEGY 21
WORKING DRAFT
DECEMBER 14, 2011
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7-1 UPDATED BY ORDINANCE #17-1213-04
ECONOMIC DEVELOPMENT
PURPOSE: A strong and diversified economy provides a high quality of life for the citizens of
Jefferson County and the region. This in turn generates the resources through which local governments
provide for the health, safety, and welfare of its citizens. Therefore, as a local government entity,
Jefferson County shall promote economic development, along with public health and safety, social
services and environmental quality.
RELATIONSHIP WITH OTHER ELEMENTS OF THE PLAN
Many issues addressed elsewhere in this Plan are important to Jefferson County’s future economic
development efforts. Issues surrounding land-use, water, transportation, housing and capital facilities and
infrastructure are important factors in Jefferson County’s economic development future.
ECONOMIC CONDITIONS
The globalization of markets and jobs, constant and rapid changes in technology, and the loss of sales tax
revenues have accentuated the economic disparities in Jefferson County. The County must develop an
approach to create a climate for economic development that facilitates the recruitment of industry and the
retention and strengthening of existing businesses.
Economic Development Organizations
Jefferson County should collaborate with local and regional leaders, economic development
organizations, governments, communities and private sector businesses interested in forging a
competitive economy.
Education
Jefferson County fosters a commitment to learning and entrepreneurship through learning centers such as
public, private, technical schools and institutions, and civic organizations.
Economic Indicators and Trends
Employment
In 2004, Jefferson County had an unemployment rate of 4.0%. This rate falls below both the national and
state levels of 5.4% and 6.2%, respectively. While maintaining a low unemployment rate is can be a
positive economic indicator, it does not account for the number of workers that are underemployed or
working on a part-time basis.
Education and Job Skills
The percentage of County residents that are 25 years of age or older with a high school diploma or GED
is 91.6 %. In addition, 28.4% of Jefferson County residents 25 years of age or older have a bachelors
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7-2 UPDATED BY ORDINANCE #17-1213-04
degree or higher. It is imperative to continue to offer educational and job training opportunities to assist
in creating a more diverse and educated workforce.
Industrial and Manufacturing Sites
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, and
the Irondale/Hadlock UGA.
Commercial Development Sites
The City of Port Townsend and the Irondale/Hadlock UGA can accommodate future commercial growth.
Opportunities also exist in Rural Village Centers and Rural Crossroads.
FUTURE ECONOMIC DEVELOPMENT PROSPECTS FOR JEFFERSON COUNTY
Through local sub-area planning and co-ordination with other agencies and organizations, Jefferson
County should use zoning, incentives or other measures to ensure that an appropriate proportion of the
land adjacent or near public infrastructure facilities is utilized to its highest and best use. The surrounding
land uses should be buffered or compatible with economic development.
Identifying and understanding future trends (such as the aging population in the county) is an essential
first step to ensure Jefferson County’s prosperity. Jefferson County must always take the next step and
prepare for both the anticipated and unexpected events. Addressing trends that are relevant to our county
such as but not limited to marine trade, building industry, natural resources, fisheries/aquaculture,
technology, agriculture, value-added products and tourism/agritourism/native tourism ensure that the
economy is stable, diversified, and competitive.
SUSTAINABLE ECONOMIC DEVELOPMENT STRATEGY
The balance between social needs, the environment, and the economy increasingly is called “sustainable
economic development.” There are three main aspects of sustainability: Economic, Social, and
Environmental:
Economic Sustainability Refers to the long-term economic vitality of the regional economy. A
healthy economy creates opportunities for entrepreneurs to profit and
provide living-wage employment opportunities for the community. A
living-wage pays the area-specific cost of living for food, housing,
clothing, health care, as well as the costs associated with raising a family.
Social Sustainability The quality of life and health of the community is a prime concern when
considering economic development issues. Needs such as affordable
housing, education, health, general safety, and equal rights under the law,
ethics, community participation, intact civil society must be in place to
sustain a vibrant community. Available employment opportunities,
apprenticeships and mentorships, will help instill a culture of work for
County residents.
Environmental Sustainability The natural environment provides many economic opportunities for
County residents. Resource extraction, farming, and tourism and their
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7-3 UPDATED BY ORDINANCE #17-1213-04
value added opportunities all depend on a healthy environment for their
continued success. The utilization of the natural environment should not
jeopardize the availability of resources for future use over the long-term.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7-4 UPDATED BY ORDINANCE #17-1213-04
GOALS AND POLICIES
Economic growth with job creation, diversity, sustainability, and environmental protection constitute the
focus of the following goals and policies.
GOAL:
EDG 1.0 Make Jefferson County the best place to live, work, and conduct business by
creating a diverse sustainable economy.
POLICIES:
EDP 1.1 Support opportunities for retention, and expansion of existing local businesses,
employment opportunities, and recruitment of new businesses that provide living-wage
jobs, that preserve and enhance Jefferson County’s quality of life.
EDP 1.2 Encourage a range of opportunities, economic activities, and businesses that serve both
the needs of local residents and visitors to Jefferson County.
GOAL:
EDG 2.0 Encourage programs aimed at providing apprenticeships, mentorships, education,
job training and retraining, and skills enhancement that are responsive to the
changing needs of local businesses and residents.
POLICIES:
EDP 2.1 Promote the full use (after hours) of schools, community centers, and other public
facilities to expand education opportunities.
EDP 2.2 Encourage public and private agencies to expand existing programs and establish new
occupational programs for high-school students to experience the culture of work.
EDP 2.3 Create a consortium of adult education providers to coordinate class offerings, facilities,
and staff resources available to Jefferson County residents who seek high school degrees,
G.E.D., remedial education, vocational training and retraining, skills or knowledge
enhancement, professional certification, two-year degrees, four-year degrees, and
advanced degrees.
EDP 2.4 Encourage programs aimed at providing education, job training and retraining,
mentorships, apprenticeships and skills enhancement that are responsive to the changing
needs of local businesses and residents.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7-5 UPDATED BY ORDINANCE #17-1213-04
GOAL:
EDG 3.0 Establish a Targeted Industry Program that promotes Jefferson County’s strengths,
advantages, and potential in the following industries:
Health Care;
Gerontology/Retirement;
Marine Trades;
Natural Resources;
High-Technology;
Value-added products;
Agriculture/Aquaculture;
Telecommunications;
Tourism (including Native, Cultural, and Agricultural); and
Local and Native Arts (including fine arts and crafts)
POLICIES:
EDP 3.1 Support efforts of economic development agencies to:
a. Establish criteria for a targeted industry program;
b. Utilize the established criteria to prioritize economic development efforts; and
c. Seek funding for the targeted industrial program.
EDP 3.2 Encourage businesses that:
a. Pay living wages;
b. Mitigate their impacts on public infrastructure and the natural environment;
c. Add value to natural resources;
d. Are environmentally sound;
e. Expand the County’s tax base;
f. Enrich the County’s cultural and health care resources; and
g. Address the needs of an aging population.
EDP 3.3 Encourage the expansion of employment opportunities in the economic sectors identified
in the Targeted Industry Program.
GOAL:
EDG 4.0 Coordinate efforts with federal, state and accountable local economic development
groups to promote a healthy and vibrant economic environment within Jefferson
County.
POLICIES:
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7-6 UPDATED BY ORDINANCE #17-1213-04
EDP 4.1 Encourage public-private cooperative partnerships to augment the County’s economy,
increase employment opportunities for residents, and that support diverse businesses
and investments.
EDP 4.2 Coordinate efforts with applicable federal, state and local agencies to provide facilities,
attractions and support services for visitors.
EDP 4.3 Support efforts of the Economic Development Council, the Port of Port Townsend, the
chambers of commerce and other agencies to attract new businesses that are compatible
with Jefferson County’s economic development strategy
EDP 4.4 Support the efforts of the Port of Port Townsend to identify the Jefferson County
International Airport (JCIA) as a self-supporting essential public facility. 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.
EDP 4.5 In accordance with County-wide Planning Policy 7.5, recognize the legislative authority
of the Port of Port Townsend as a valuable tool to implement industry, trade strategies
and promote employment opportunities.
GOAL:
EDG 5.0 Provide regulatory incentives to encourage and facilitate economic opportunities
within the County.
POLICIES:
EDP 5.1 Continue to work with state, federal and local agencies to coordinate and streamline
environmental review procedures and processes.
EDP 5.2 Continue to work towards internal coordination and consistency in the application of
development regulations and standards.
EDP 5.3 Periodically review and update, if necessary, land-use and permitting procedures to
assure that regulatory processes are understandable, predictable and timely.
EDP 5.4 Develop planned actions under SEPA for geographic areas, such as master planned
resorts, urban growth areas, and limited areas of more intensive rural development.
GOAL:
EDG 6.0 Encourage and support economic development for rural and urban lands.
POLICIES:
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7-7 UPDATED BY ORDINANCE #17-1213-04
EDP 6.1 Use land use designations such as Industrial Land Banks (ILBs), Major Industrial
Developments (MID), Urban Growth Areas (UGAs), Limited Areas of More Intense
Rural Development (LAMIRD), Rural Village Centers, Rural Crossroads, and the
allowed uses specific to each designation to support regional alliances and economic
clusters to attract investment and sustain economic activity.
EDP 6.2 Encourage the establishment of new sustainable natural resource-based
activities in rural areas to increase employment opportunities. Natural
resource-based activities shall be located near the agriculture, mineral,
aquaculture or forest resource upon which they are dependent.
EDP 6.3 Allow for low-impact home-based businesses and cottage industries, agritourism
including bed and breakfasts, small scaled tourist and recreational uses, and other uses
that serve tourists and the traveling public, in rural residential areas.
EDP 6.4 Encourage the provision of technology that fosters home-based businesses, (i.e.,
telecommuting, fiber optics, etc.).
EDP 6.5 Encourage senior living facilities that have multi-modal access to commercial districts
and health care facilities.
EDP 6.6 Encourage those businesses that produce value-added products
EDP 6.7 Conserve and enhance existing agriculture and encourage future innovative agriculture
ventures and technologies.
EDP 6.8 Direct new industrial/associated commercial development in the Glen Cove area to areas
within the logical boundaries established under the provisions of RCW 36.70A.070(5)(d)
while continuing to work with the City of Port Townsend, Port of Port Townsend, PUD,
economic stakeholders and economic development agencies regarding capital facility
and land use .
EDP 6.9 Protect the Port of Port Townsend’s industrial properties, waterfront and all other public
assets entrusted and managed by the Port and established by legislative mandate to
enhance economic vitality and quality of life for the citizens of Jefferson County.
GOAL:
EDG 7.0 Support human and social services necessary to encourage a strong local economy
anda healthy community.
POLICIES:
EDP 7.1 Support social service agencies and programs that promote employment and the culture
of work, address community needs, and help maintain a vibrant healthy working
community.
EDP 7.2 Support the location, development and maintenance of special needs, social service
facilities within the boundaries of designated Rural Centers and Urban Growth Areas,
including but not limited to job retraining, health care, day care, elder care, education,
transportation, nutrition programs, and food banks.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7-8 UPDATED BY ORDINANCE #17-1213-04
EDP 7.3 Create facilities to meet the needs of an aging population; health care, recreation,
housing, and social services must be accessible and able to adapt as the population ages.
EDP 7.4 In cooperation with local jurisdictions and appropriate state and federal agencies,
encourage improved access to social services at locations proximate to populations being
served (i.e., the Rural Village Centers and Urban Growth Areas) and to adequate
transportation services including public transit.
GOAL:
EDG 8.0 Promote the development of tourist and tourist-related activities as a provider of
employment and business opportunities in Jefferson County.
POLICIES:
EDP 8.1 Provide infrastructure for tourist services and promote agricultural tourism, eco-tourism,
and native and cultural tourism with revenue generated from the lodging tax.
EDP 8.2 Encourage efforts to preserve scenic open space, historic and native villages and local
cultural resources that are attractive to both local residents and visitors.
EDP 8.3 Encourage the development of small businesses, services, cultural attractions and special
events that capture and support tourism. Identify wider uses for these small businesses to
also furnish goods and services to the traveling public and local population.
EDP 8.4 Encourage public access to waterbodies and scenic drives through signage, maps, scenic
pull-offs, public information programs and other means of identifying areas and features
of interest.
GOAL:
EDG 9.0 Encourage economic development that sustains natural resources and open spaces,
protects environmental quality and enhances Jefferson County’s overall quality of
life.
POLICIES:
EDP 9.1 Support and protect the economic value and long-term sustainability of Jefferson
County’s environmental resources.
EDP 9.2 Develop and update land use policies that conserve resource lands and provide
sustainable employment opportunities.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7-9 UPDATED BY ORDINANCE #17-1213-04
GOAL:
EDG 10.0 Provide, maintain and encourage phased infrastructure development that is
adequate to attract and accommodate desired economic growth in areas of Jefferson
County consistent with the requirements of the Growth Management Act.
POLICIES:
EDP 10.1 Support and coordinate efforts with the City of Port Townsend, Port of Port Townsend,
PUD, Port Ludlow MPR, infrastructure service providers, and/or other stakeholders to
conduct special studies that identify and evaluate infrastructure needs in areas targeted for
future commercial and industrial development.
EDP 10.2 Ensure that proposed infrastructure and levels of service create opportunity and are able
to support current and projected needs.
EDP 10.3 Investigate new and/or innovative infrastructure, such as wireless or fiber-optic
telecommunications technology, to link Jefferson County with other areas.
EDP 10.4 Support efforts to establish public transit service linking Jefferson County with
surrounding areas.
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7-10 UPDATED BY ORDINANCE #17-1213-04
STRATEGIES
A. ADEQUATE LAND AND INFRASTRUCTURE FOR ECONOMIC DEVELOPMENT
Jefferson County’s economic development strategy includes ensuring that land use and planning decisions
provide for an adequate supply of zoned land, public services and infrastructure, and an efficient and
timely permitting process to facilitate the development of future industrial, commercial, and
manufacturing activities.
Action Items
1. Establish an Industrial Land Bank in close proximity to a UGA for the siting of major industrial
developments outside designated Urban Growth Areas that is consistent with RCW 36.70A.365
and 36.70A.367 (Corresponding Goal 6.0)
2. In cooperation with the City of Port Townsend, the Port of Port Townsend, private enterprises,
and Economic Development organizations, pursue a study of industrial and commercial lands
County-wide to determine whether there is an adequate land base to support future economic
development activities. Among other things, this study should identify suitable land in urban,
rural and resource settings. (Corresponding Goal: 5.0)
3. Provide opportunities and infrastructure for senior living inside or in close proximity to
commercial centers and recreation centers
4. Support farming as an essential part of local and regional economy and support uses that add
value to agricultural products and sustain agriculture in rural lands. (Corresponding Goals: 1.0,
6.0)
5. Work with educational professionals and economic development authorities to obtain additional
funding to support existing educational programs such as those operated by the Jefferson
Educational Foundation. (Corresponding Goals: 1.0, 2.0)
6. Aid local efforts, to secure an expanded Peninsula College Branch Campus. (Corresponding
Goals: 2.0)
7. Actively promote mentorships, apprenticeships, vocational training and educational opportunities
that strengthen and increase the skills available in the local workforce. (Corresponding Goals:
1.0, 2.0)
8. Encourage educational outreach programs (such as WSU, Peninsula College, Northwest School
of Wooden Boatbuilding, and private programs) designed to train people in recreational and
tourist related activities, small scale entrepreneurship, and marine trades.
(Corresponding Goal: 2.0)
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7-11 UPDATED BY ORDINANCE #17-1213-04
9. Request quarterly visits to distressed areas by State Job Training Office employees to encourage
incentives to work, educate the population about the culture and ethics of work, and look for job
opportunities and training programs for unemployed adults and teens.
(Corresponding Goal: 2.0)
10. Actively engage Community Trade and Economic Development’s (CTED) Tourism Office and
Lodging Tax Advisory Committee (LTAC) in promoting distressed areas of Jefferson County as
tourist destinations.
(Corresponding Goal: 8.0)
11. In cooperation with pertinent State and Federal agencies, the County should work towards
developing a plan to ensure the delivery of appropriate services (i.e., education, transportation,
etc.) to the special needs populations. (Corresponding Goal: 4.0)
12. When rewriting the land use codes, efforts should be directed towards:
Integrating and simplifying land use regulations;
Ensuring current procedures provide efficient and effective processing, monitoring and
decision making;
Developing multiple permitting process tracks to allow increased flexibility and rapid
processing of development applications that conform to a prescribed set of regulations.
(Corresponding Goal: 5.0)
13. Review the County’s permit review process to ensure current procedures provide efficient, timely
and effective processing, monitoring and decision-making. (Corresponding Goal: 5.0)
14. Facilitate the construction of a sewer system for the Irondale/Hadlock UGA to provide greater
opportunities for residential, industrial and commercial uses. (Corresponding Goal: 10.0)
B. INITIATIVE TO ATTRACT NEW ECONOMIC DEVELOPMENT
Jefferson County’s strategy for economic development incorporates partnerships with agencies,
organizations, educational institutions, and local government to foster and attract new economic
development activities which are consistent with the County’s resources, vision, and rural character.
Action Items
1. Create opportunities for Private Senior Housing development from independent living to nursing
facilities (Corresponding Goal: 6.0)
2. In cooperation with other economic development entities, develop a process to identify the
availability of financial assistance to support the production of value-added products for resources
such as timber , agriculture, and native art and provide incentives for businesses and cottage
industries. This process should also identify the availability of incentives, to encourage
ecosystem rehabilitative industries. (Corresponding Goal: 3.0)
3. Conserve agricultural lands for production through the following means:
Continue to provide tax incentives (Open Space or Current Use assessments);
ECONOMIC DEVELOPMENT
Jefferson County Comprehensive Plan 7-12 UPDATED BY ORDINANCE #17-1213-04
Support opportunities for valueadded agricultural products;
Continue to provide technical assistance, such as resource conservation plans prepared by the
Jefferson County Conservation District or Natural Resources Conservation Service and
programs developed by Washington State University Cooperative Extension;
Discourage incompatible uses on adjacent lands, through increased setbacks, limits on utility
extensions in agricultural areas, right-to-practice agriculture ordinances, and notification to
residential landowners of potential incompatible uses. (Corresponding Goal: 9.0)
4. Ensure the County’s implementation regulations maintain access for the public to the County’s
various waterbodies, both fresh and salt water, and encourage the creation of tourism related
facilities throughout the County including, but not limited to, convention facilities, hotels, bed
and breakfast facilities, public and private parks, campgrounds, recreational facilities, and other
facilities which will attract and cater to tourists. (Corresponding Goals: 5.0, 8.0)
5. In cooperation with utility providers, develop a co-location utility siting agreement to encourage
co-use of utility corridors. (Corresponding Goal: 4.0)
6. Support opportunities for alternative energy and alternative fuel plants such as bio-diesel or wind
generation.
7. Work with the City of Port Townsend and telecommunications utility providers in an effort to
identify ways by which high capacity fiber optic cables and wireless technologies can be best
sited to serve the County. (Corresponding Goal: 4.0)
8. Streamline development review processes and regulations to ensure that permitting is timely and
effective and does not impose unnecessary cost to the applicant. (Corresponding Goals: 1.0,
4.0)