Economic Development Strategic Framework and Action Plan

Year 3 (2015) in Review & Projections for Year 4 & 5

(2016 & 2017) City of Tacoma Community and Economic Development

Ricardo Noguera, Director Economic Development Committee

May 10, 2016

Economic Development Strategic Framework Next two-year Plan and final phase will focus on: 1. Recruit and establish office/tech companies

downtown with focus on creating and retaining jobs 2. Improve image of downtown and surrounding

Neighborhood Business Districts 3. Expand focus of Foreign Direct Investment and

International Economic Development activities 4. Revitalize Lincoln & South Tacoma Way Districts 5. Expand opportunities for Small Business

Development 2

Economic Development Strategic Framework

2013 Five-Year Plan for the City & Its Partners 1. Central City, Dome & Brewery Districts 2. Small Business Development & Entrepreneurship

Services 3. Waterfront Development 4. Port of Tacoma & Industrial Districts 5. Business District & Neighborhood Revitalization 6. Workforce Development 7. Arts, Culture, Tourism & Hospitality Initiatives 8. Professional and Business Friendly Government 3

Tacoma Economic Development Partners • Neighborhood Business Districts (NBDs) • Tacoma Regional Convention & Visitors Bureau (Travel

Tacoma) • Local colleges and universities • Executive Council for a Greater Tacoma • Tacoma-Pierce County Chamber of Commerce • Workforce Central • Economic Development Board of Tacoma-Pierce County • Pierce County Economic Development Department • World Trade Center Tacoma • The Port of Tacoma • Go Local Tacoma and Many More 4

1. Facilitated Redevelopment of Surplus & Underutilized Government Properties

A. Pierce Transit Transit-Oriented Development (TOD) in Dome District

B. Department of Commerce TOD in Hilltop District

C. Metro Parks partnership promoting redevelopment of their surplus properties

2014-15 Economic Development Accomplishments

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B.

B. A.

2. Foreign Direct Investments - Underway

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A. Convention Center Hotel B. Town Center Development

Convention Center Hotel Town Center Development

Note: The Mayor recently led an investor trip to Vietnam where the country has expressed support for private developers to invest in Tacoma.

A. The Henry Apartments on the Foss

B. Century Village at Pt. Ruston

C. Proctor Station

3. New Multi-Family Development Projects

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The Henry Apartments

Century Village at Pt. Ruston Proctor Station

A. McMenamins at Former Elks Lodge

B. Winthrop Hotel Restoration

4. Historic Restoration & Adaptive Reuse

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A.

B.

C. 7 Seas Brewing at former Jet Building D. RAM at Nisqually Pump Station E. Brownstar Grill F. Old City Hall G. Valhalla Hall

4. Historic Restoration & Adaptive Reuse cont.

9 7 Seas Brewing -- Jet Building RAM Brewery & Tasting Room

5. Arts & Cultural Activities A. 5-Year Arts & Cultural Plan B. Tacoma Art Museum $15m

Western American Art Collection funded by Haub

C. Tacoma Art Museum $14m Benaroya Collection (glass, paintings and sculptures) funded by Becky and her late husband Jack Benaroya

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B. C.

5. Arts & Cultural Activities cont. D. Spaceworks E. Former Police Substation in

McKinley Station (plans con- version to live-work studios)

F. Old Carpenter Hall (conversion planned to art and music studios)

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D.

E.

F.

6. Industrial & Port Activities

A. Port of Tacoma/Seattle Alliance B. WestRock C. Puget Sound Energy Feasibility Study Underway

12 Puget Sound Energy Feasibility Study Map

6. Industrial & Port Activities cont.

D. Evergreen Fire and Safety-- relocation

E. Cordant Health Solutions – expansion

F. Burkhardt Dental (South Tacoma) – retention

13 Cordant Health Solutions

Evergreen Fire and Security

Burkhardt Dental

7. Downtown Office – Recruitment & Retention/Expansion A. State Farm - Recruitment B. Sound Physicians - Retention &

Expansion C. Coordinated Care - Expansion D. SURGE Tacoma - Recruitment

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State Farm

Sound Physicians SURGE Tacoma

8. Small Business Loans & Facade Loans

A. Primo Grill on 6th Avenue TCRA Facade Loan ($50,000)

B. 26th & Alder Leasehold Improvement Loan ($60,000 Facade Loan)

C. Dome District Facade Loan ($50,000)

D. W Insurance Group Loan at 1007 Pacific Avenue ($20,650)

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26th & Alder

Primo Grill

9. Neighborhood Revitalization Activities -- Commenced

A. Lincoln District – more than $5m streetscape improvements planned

B. South Tacoma Way – more than $20m underway

16 Lincoln District

South Tacoma Way

10. Other Miscellaneous Activities A. UW Tacoma Expansion Prairie Line Trail UW Tacoma YMCA Relocation of The Old

Spaghetti Factory to 13th & Pacific to support conversion of restaurant space to lab space for UWT

17 Future Lab Space for UWT

10. Other Miscellaneous Activities cont. B. Murano Hotel—City sold

parking lots and Bicentennial Pavilion to the hotel

C. Amtrak Relocation D. Bass Pro Sports E. Auto Dealer Expansion

(a total of 5 dealers have expanded)

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Bicentennial Pavilion

Amtrak Relocation

Projections for the Next Two Years: 2016-2017 The last two years proved very successful in Tacoma as it relates to economic development. The next two years (2016-2017) will witness significant construction, redevelopment and permanent job creation in Downtown. Here are the projections and priorities for the next two years:

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1. Downtown Office Recruitment & Development Private investors to promote new office

construction Market the Super Block, Town Center and other

available buildings and properties downtown to support expanding office users

Establish environment where start-up tech firms can grow

Conduct recruitment trips to the Bay Area and King County for expanding tech firms

Proactively promote expansion of existing office users

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2. Brewery and Dome Districts – Future of Downtown

Town Center Development 7 Seas Brewing RAM Brewing and Tasting Room at Nisqually

Pump Station Pierce Transit TOD Infill TOD projects in Dome District

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RAM Brewing at Nisqually Pump Station

3. Adaptive Reuse & Historic Preservation Former Elks Lodge—40 room hotel open Fall 2017 Old City Hall—Negotiations under way with

McMenamins to convert to 60 room hotel 7 Seas Brewing at the Jet Building Former Nisqually Pump Station converted to RAM

Brewing and Tasting Room Brownstar Grill Mixed-Use Former Police Substation converted to “Station

Artists’ Lofts” Carpenter Hall converted to art & music studios --

“Alma Mater” 22

4. Foreign Direct Investment Convention Center Hotel—under contract for 300

room 4-star hotel Town Center in Brewery District—under contract Vietnamese developers seeking new development

opportunities

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5. Multi-Family Developments (950 units projected to break ground in Downtown and in Mixed-Use Districts)

The Grand on Broadway (143 units)

The Napoleon (135 units)

24 The Grand on Broadway

5. Multi-Family Developments (950 units projected to break ground in Downtown and in Mixed-Use Districts) cont.

Stadium Mixed-Use (174 units) 11th & MLK Transit-Oriented Development

(TOD) (220 units) Pierce Transit TOD

(120 units) Town Center

(180 units)

25 11th & MLK TOD

6. Industrial & Port Activities 7. Neighborhood Business

District Revitalization Activities A. Lincoln District

• Infill mixed-use development opportunities

• Artwork is underway • Affordable housing &

improvements underway

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40th Street Listing

7. Neighborhood Business District Revitalization Activities cont.

B. South Tacoma Way • $20m improvements • Loft Studios/Spaceworks • Infill Mixed Use Develop-

ment Opportunities near 56th & South Tacoma Way

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8. Office Development, Recruitment and Locally Grown • Job Training/Skill Enhancement- focus on

tech as well as construction jobs • Biotech- promoting acquisition of former

Nativity House as Biotech Incubator • Tech Industry- Partner with SURGE Tacoma,

UW Tacoma, IT and New Tech Tacoma to grow tech firms locally

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9. Arts & Culture (5-Year Plan) 10. Small Business Development

• SBE/LEAP focus on promoting small business development, job creation connecting to multi million dollar construction projects

• Entrepreneurship, Financing, Technical Support

• Job Training/Skill Enhancement with focus on tech as well as construction jobs

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11.Partnerships with Public Agencies to Redevelop Surplus & Underutilized Properties • Metro Parks • Pierce Transit • WA State Department of Commerce

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12.Development Along the Foss • Sites 8 and 9

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Sites 8 & 9

Development Concept submitted by Presbyterian Retirement

Communities Northwest (PRCN) (in negotiations)

12.Development Along the Foss cont. • Site 10 and Municipal Dock

32 Site 10 Municipal Dock

13.Neighborhood Business District (NBD) Activities for 2016 A. Hilltop District • Vahalla Hall • Brownstar Grill • 11th & MLK TOD B. Stadium District • Stadium Mixed-Use Development • Rhein Haus German Restaurant

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Valhalla Hall (rendering)

13.Neighborhood Business District (NBD) Activities for 2016 cont.

C. Proctor District • Proctor Brew Pub

D. Sixth Avenue Business District • Fish! Fish! Fish! & Chips Restaurant • Infill Retail Recruitment • 6th/Alder Mixed-Use Development

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13.Neighborhood Business District (NBD) Activities for 2016 cont.

E. Lincoln District • Streetscape Improvements • Infill Mixed-Use Development • Retail Recruitment • Arts Activities

F. McKinley Business District • Depaving Project • McKinley Station Artists’ Lofts

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13.Neighborhood Business District (NBD) Activities for 2016 cont.

G. Dome District • Pierce Transit TOD • Amtrak Relocation

H. Small Business Development • Expansion of Spaceworks to support creative

enterprises

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13.Neighborhood Business District (NBD) Activities for 2016 cont.

H. Small Business Development cont. • Establishment of a vendor clearing house

program to coincide with LEAP & SBE programs • Promotions with local

non-profit agencies to promote job training opportunities in construction as well as technical areas, services

• & products

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Economic Development Strategic Framework and Action Plan

Year 3 (2015) in Review & Projections for Year 4 & 5

(2016 & 2017) City of Tacoma Community and Economic Development

Ricardo Noguera, Director Economic Development Committee

May 10, 2016