CHAPTER 8 ECONOMIC DEVELOPMENT - Thurston County · 2019. 6. 6. · Economic Development THURSTON...

Planning Commission Public Hearing Draft July 2019

January 2019 Public Draft

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CHAPTER 8 ECONOMIC DEVELOPMENT

I. INTRODUCTION

GrowthManagementAct:Many of the Comprehensive Plan chapters, like Housing and Transportation, are required by the Growth Management Act (GMA). The Economic Development Chapter, however, is optional. The State, recognizing the importance of economic development efforts, included an economic development planning goal in the GMA that is to guide the development and adoption of comprehensive plans and associated regulations:

• "Encourage economic development throughout the state that is consistent with adopted Comprehensive Plans;

• Promote economic opportunity for all citizens of this state, especially for unemployed and for disadvantaged persons; and

• Encourage growth in areas experiencing insufficient economic growth, all within thecapacities of the state's natural resources, public services, and public facilities."

County‐WidePlanningPolicies:The County, in association with its seven cities and towns, developed and adopted GMA-required County-Wide Planning Policies. These now provide the planning framework that allows community individuality while ensuring regional consistency on major policy issues. The GMA requires the Economic Development section of the Comprehensive Plan to be consistent with the County-Wide Planning Policies. Section VI. Economic Development and Employment states:

"City, town, and county governments in Thurston County encourage sustainable economic development1 and support job opportunities and economic diversification that provide economic

1 Sustainable economic development is defined as continually adding higher value to the work of residents in the community in order to provide:

A. Quality and diversity of employment opportunities:

• Family wage jobs and entry level jobs offering career paths;

• A mix of skilled, semi-skilled and professional job opportunities and trained residents to fill thosejobs;

• A healthy balance of private and public job opportunities;

• A business climate that encourages entrepreneurship, innovation, new business start-up and business expansion.

B. Stability and diversity of the revenue base:

• Adequate revenues to fund priority community services;

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Economic Development THURSTON COUNTY COMPREHENSIVE PLAN

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vitality and ensure protection of water resources and critical areas. In order to attain an economic base that provides an adequate tax base revenue source, enhances the quality of life of community residents, and maintains environmental quality, the cities, towns, and county will:

6.1 Provide in their comprehensive plans for an adequate amount of appropriately located land, utilities, and transportation systems to facilitate environmentally sound and economically viable commercial, public sector, and industrial development;

6.2 Support the retention and expansion of existing public sector and commercial

development and environmentally sound, economically viable industrial development and resource uses;

6.3 Provide assistance in obtaining funding and/or technical assistance for the expansion or establishment of environmentally sound and economically viable economic development;

6.4 Support recruitment of environmentally sound and economically viable economic development that helps to diversify or strengthen local economies;

6.5 Support work force training that will facilitate desirable economic development that helps to diversify or strengthen local economies;

6.6 Improve regulatory certainty, consistency, and efficiency;

6.7 Coordinate economic development efforts with other jurisdictions, the Port, the Economic Development Council, chambers of commerce, and other affected groups; and

6.8 Encourage the utilization and development of areas designated for industrial use, consistent with the environmental policies in Section IX."

• More equitable distribution of the tax burden;

• Flexibility in the tax structure to encourage high value-added job creation and investment.

C. Better environmental quality and use of limited natural resources:

• Waste reduction through recycling;

• Maximum use of human potential in products and services;

• Continued development and use of better technology;

• Pollution reduction;

• Environmental protection.

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2004Update:The Economic Development Chapter has been revised realizing that the chapter was last updated in 1995. This effort has included coordinating policies on commercial development with the Land Use Chapter of the Comprehensive Plan, updating data related to Thurston County’s economy, ensuring that policies are stated in terms of “should” and an overall review of the “actions needs” sections and turning those into policy statements.

2018Update: The Economic Development Chapter was last revised in 2004. The 2018 update reflects new insights and priorities gleaned from several recent community planning efforts, including: Sustainable Thurston (and, specifically, the Sustainable Economy Chapter); Thurston Thrives (a county-wide community health and social well-being analysis); and the Thurston Community Economic Alliance (TCEA) Strategic Plan (the first-ever county-wide economic development action plan, adopted by Thurston County, its constituent municipalities and multiple public and private service provider organizations).

II. THURSTON COUNTY ECONOMY

PlanningContext

Thurston County serves as the regional center for much of the economic and business activity of Southwest Washington’s South Puget Sound and surrounding rural communities (Thurston is the most populated county in the five-county Pacific Mountain Workforce region which also includes Lewis, Grays Harbor, Pacific and Mason Counties). This includes education, health, business services, retail, finance, cultural attractions, and government.

The Economic Development Chapter describes employment and workforce in the county, labor sectors, wages, sales revenue, and sets policies to address changing conditions.

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20189 Update: Critical Issues Responding to business challenges through innovative programs and policies; Providing a friendly regulatory environment and valuable resources to support the diverse

rural economy; Strengthening collaboration between jurisdictions, education institutions, businesses and

the Thurston Economic Development Council; Ensuring a local and educated work force to target growing industry sectors; and Supporting the development of infrastructure to meet the needs of growing and new

businesses.

2018 Update: Critical Issues Key opportunities and challenges for economic development in Thurston County over the next several decades include:

Ensuring development and infrastructure, including transportation and utilities, meet the changing needs of businesses

Aligning workforce development with employment gaps in labor sectors with higher wage jobs, such as manufacturing, professional services, and warehousing

Changing demand for workforce skills in response to expanding automation, other technology advances, market changes, and globalization

Developing and supporting local supply chains to match with local markets for goods and services, especially in the agriculture and manufacturing sectors

The Growth Management Act (GMA) requires an economic development element “establishing local goals, policies, objectives, and provisions for economic growth and vitality and a high quality of life.” The State, recognizing the importance of economic development efforts, included a planning goal in the GMA to guide the development and adoption of comprehensive plans and associated regulations:

Encourage economic development throughout the state that is consistent with adopted Comprehensive Plans;

Promote economic opportunity for all citizens of this state, especially for unemployed and for disadvantaged persons;

Promote the retention and expansion of existing businesses and recruitment of new businesses;

Recognize regional differences impacting economic development opportunities; and

Encourage growth in areas experiencing insufficient economic growth, all within the capacities of the state's natural resources, public services, and public facilities.

RCW 36.70A.020(5)

GROWTH MANAGEMENT REQUIREMENTS

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Preparing for an aging population, including the impact of retirements among the Baby Boomer generation, and the needs of a larger market of senior citizens

Rising housing costs and the availability of affordable housing options for workers Higher wages in counties to the north creating incentive for workers to commute out of

county Tracking changes at major employers, including state government and Joint Base Lewis-

McChord

II. PLANNING CONTEXT FOR ECONOMIC DEVELOPMENT

Thurston is the most populated county in the five-county Pacific Mountain Workforce region which also includes Lewis, Grays Harbor, Pacific, and Mason Counties. The economy of the county is highly integrated with that of the cities within its borders, particularly the urbanized areas within and surrounding Olympia, Lacey, and Tumwater. Thurston County also exists within the greater Puget Sound economy that includes Seattle and King County, which means Thurston County residents have the opportunity to commute to nearby counties for employment.

A. COUNTY WIDE PLANNING POLICIES Economic development is included within the goals adopted under the County Wide Planning Policies in 1993. These goals address issues for the seven jurisdictions, as well as Thurston County itself.

7.1 Encourage an economy that is diverse, can adapt to changing conditions, and takes advantage of new opportunities.

7.2 Support the recruitment, retention and expansion of environmentally sound and economically viable commercial, public sector and industrial development and resource uses, including the provision of assistance in obtaining funding and/or technical assistance.

7.3 Provide in comprehensive plans for an adequate amount of appropriately located land, utilities, and transportation systems to support desirable economic development. Create and maintain regulatory certainty, consistency, and efficiency.

7.4 Acknowledge and look for opportunities to engage with regional economic drivers such as state government, the Port of Olympia, and Joint Base Lewis-McChord. Coordinate economic development efforts as well with other jurisdictions, the Economic Development Council, Chambers of Commerce, and other affected groups.

7.5 Build a vital, diverse and strong local economy, including job opportunities that support community and household resilience, health, and well-being, by:

a. Supporting workforce training and offering opportunities for education and entrepreneurial endeavors.

b. Supporting creativity, arts, and culture.

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c. Providing opportunities for a range of business types to succeed.

d. Emphasizing policies that support locally owned businesses including home-based, entrepreneurial, and nonprofit business and organizations.

e. Encouraging the development of local services for food, clothing and other basic human needs.

f. Nurturing urban and rural agricultural and food-oriented businesses.

g. Protecting resource lands.

h. Encouraging the utilization and development of areas designated for industrial use, consistent with the environmental policies in these county wide policies.

i. Connecting economic health with personal health and well-being and the advancement of environmental health.

j. Adding incentives for business to demonstrate their environmental sustainability including reduction in greenhouse gas emissions

B. SUPPORTING PLANNING ENTITIES Thurston Thrives is a network that brings together community partners of Thurston County. Thurston Thrives was founded by the Thurston County Board of Health in 2013. The Thurston Thrives Economy Goals are influential in the Goals, Objectives and Policies of the Comprehensive Plan. The two main goals are to ensure:

1. More transformational jobs are created; and

2. Everyone builds social and economic wealth.

Sustainable Thurston is a community conversation. The purpose of the conversation is to identify a vision for a vibrant, healthy, and resilient future. The resulting Sustainable Thurston Final Plan emphasizes development and activity that build community prosperity while preserving the natural assets. Sustainable Thurston includes a “Sustainable Economy” chapter, which outlines the following high-level goals:

Ensure adequate supply of shovel-ready land along primary transportation corridors and invest in commercial and industrial redevelopment;

Coordinate economic development efforts to attract and retain businesses and jobs; Foster industry clusters to create jobs, and increase revenue circulation locally; Create an innovation culture to encourage entrepreneurship; Provide robust infrastructure to support economic development; and Foster a progressive education system to match worker skills with employer needs.

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“BalancingLandUsewithNature”byOlympiaNoire.Thurston2040PhotoContestWinner."Weareguaranteedabrighter,morevibrantfuturethroughproperlandusebalancedwithecosystemsthatworkinharmonywithnature."

Additional Partnerships A wide variety of public, private and non-profit organizations are actively engaged in fostering improved economic health and diversification of Thurston County’s economic base. Community partners include all Thurston County municipalities, the Thurston Economic Development Council (EDC), local Chambers of Commerce, Port of Olympia, Pac Mountain Workforce Development Council, local colleges and universities, the Thurston Asset Building Coalition, Intercity Transit – who delivers workers to their places of employment, and dozens of other organizations.

Recently, through a partnership between the EDC and South Puget Sound Community College (SPSCC), a new Center for Business and Innovation (CBI) was established at the new SPSCC Lacey Campus. The CBI offers a one-stop center for business economic development, with services including:

Training for current or prospective women-owned businesses; Business scale-up training for small and emerging businesses; Real estate and market data research and support; Entrepreneurship courses and degree certificates; and Government contracting support and education.

The training and entrepreneurship courses are especially relevant to the GMA goal of promoting economic opportunity for all citizens of this state, especially for unemployed and for disadvantaged persons. These empowerment programs are vital to promoting growth among micro-enterprises

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operated by women, minorities, veterans and other under-represented populations. The CBI also hosts the South Sound Food Network (SSFN) and South Thurston Economic Development Initiative (STEDI) serving the greater Thurston County rural and agricultural communities. Additional services are available to help connect military (Lacey Veterans’ Center), provide seed funding to micro-enterprises and prepare students and dislocated workers for current employment opportunities – whether through “Maker Space” access or via personal development workshops and internships offered through Pac Mtn WDC and Thurston Chamber Business to Business (B2B) training programs. These and many other initiatives are part of the Sustainable Thurston initiative coordinated by the TRPC.

III. THE THURSTON COUNTY ECONOMY

A. WORKFORCE SECTORS & EMPLOYMENT Thurston County is greatly influenced by its position as the seat of state government. Its economy is dominated by government employment, which has grown considerably since 1970. During that same period, employment mushroomed in the trade and service sectorsAs of 2016, more than 37,000 people were employed in government occupations, representing approximately 34% percent of the overall workforce. The total county population was 272,700 in 2016.

Health care and retail also provide a significant number of local jobs, 13% percent and 11% percent respectively, and are the fastest-growing industry sectors in Thurston County.

The growth in trade and service sectors is linked to several factors:

first, eExpansion of state employment which provided a local market for the trade and service sectors;

“HeadedToThePumpkinPatch”byChristinaShugartEugy.Thurston2040PhotoContestWinner."WhenIthinkofagricultureinThurstonCountyIthinkofourfamilyvisitingRutledgeFarmandridinginawagontothepumpkinpatchtopickourpumpkinsforcarvingandbaking.It’sbecomeafamilytradition,rainorshine.Ofcourse,wealwaysgothroughthemazetoo!"TourismTourismDrivesEconomicDevelopment by Ingrid Barrentine

Tourism drives economic

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second, lLocal consumers are making more local purchases due to regional shopping facilities built in the county;

third, Sshopping centers and medical facilities are serving more consumers from outside the county; fourth, manufacturing is moving off-shore to countries that supply cheaper labor; and

finally, tThe shift in the national economy from traditional manufacturing to a service-based information economy.

Manufacturing continues to occupy a comparatively small role in the economy. Total employment and wage earnings in manufacturing is near just 53% percent, illustrating the county's lack of diversity in its economic base. This reliance on one sector is cause for caution. Many other areas regions have felt insulated with their stability coming from a single majorone dominant sector, only to find years later serious changes affecting that stability (e.g., forest products in the 30's, 40's, and 50's and nuclear energy in the 50's, 60's, and 70's).

Fortunately, Thurston County has experienced relatively stable employment in the years leading up to and immediately following the Great Recession. The tables below show the unemployment rate and actual number of people in the civilian workforce versus the number employed or unemployed from 2000 through 2016. Thurston County had an unemployment rate of 4.7 percent in 2017.2

Table8‐1UnemploymentRate

2 Employment Security Department of Washington State, Labor Force (LAUS) Statistics, 2017

“TransportationBySea”byChristinaShugartEudy.Thurston2040PhotoContestWinner.“ThereisanabundanceofwateraroundThurstonCountyandmyfavoritewaytotravelisbyboat.Wearesoveryfortunatetohavethisoptionoftransportation.”Tourism

TourismDrivesEconomicDevelopment by Ingrid Barrentine

Tourism drives economic development through visitor spending dollars, such as dining out, hotels and shopping locally.

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Figure8‐1.UnemploymentRate:2000‐2016.SOURCE:EMPLOYMENTSECURITYDEPARTMENT/LMPA,;U.S.BUREAUOFLABORSTATISTICS,LAUS.

Table8‐2CivilianLaborForce

Figure8‐2.ThurstonCountyCivilianLaborForce,Employment,andUnemployment:2000‐2016

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6%

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Unemployment Rate: 2000-2016

Thurston Unemployment Rate Washington Unemployment Rate

128,724

121,382

7,342

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Labor Force, Employment and Unemployment: 2000-2016

Civilian Labor Force Total Employment Total Unemployment

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SOURCE:EMPLOYMENTSECURITYDEPARTMENT/LMPA;,U.S.BUREAUOFLABORSTATISTICS,LAUS

B. TAX REVENUE Internationally, nationally, and now locally, economies are continue to undergo significant evolutionschange significantly. These changes are mainly , driven primarily by advances in technologydramatically changing. In addition, as evidenced during the Great Recession, a significant drop in overall economic activity can lead to severeState fiscal belt-tightening within federal, state and local government. Often, the effects of declines in private-sector economic performance linger in the public-sector, which relies on the restoration of normal taxable revenue conditions to fully function. As seen during the Great Recession, a significant economic drop can lead to fiscal belt-tightening in government. (i.e. Iin Washington State, property tax increases are capped at 1% percent annually, and no income tax is collected, leaving sales tax as the most viable source of potential revenue growth).

may impact government employment levels.

The graphs below show the relative tax revenue generated in Thurston County over time, and the per capita equivalent of tax revenue generation based on some of the larger jurisdiction’s’ population size.

Figure8‐3TaxableSalesRevenueinThurstonCounty

Figure8‐3.TaxableSalesRevenueinThurstonCounty:1996‐2016..SOURCE:WASHINGTONDEPARTMENTOFREVENUE.

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Regional Taxable Sales Comparison: 1996-2016

Olympia Lacey Yelm Tumwater Unincorporated Thurston

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Figure8‐4PerCapitalTaxableSalesinThurstonCounty

Figure8‐4.TaxableSalesPerCapita:1996‐2016.SOURCE:WASHINGTONDEPARTMENTOFREVENUE,JRO+CO.

Table8‐1.AverageAnnualWagesandEmploymentbyIndustry.SOURCE:WASHINGTONSTATEEMPLOYMENTSECURITYDEPARTMENT,COVEREDEMPLOYMENT(QCEW),2017.

Industry Description Firms

Total 2017 wages paid

Average annual

employment Average annual wage

Count % Total % Total % Average Rank

Total 7,923 100 $5,564,735,410 100 113,126 100 $49,191 - GOVERNMENT 172 2.2 $2,298,053,114 41.3 37,909 33.5 $60,620 7 Healthcare and social assistance 1,628 20.5 $725,929,779 13.0 14,542 12.9 $49,920 11 Retail trade 682 8.6 $392,800,826 7.1 12,590 11.1 $31,199 18 Accommodation and food services 475 6.0 $175,030,489 3.1 8,983 7.9 $19,485 19 Administrative and waste services 563 7.1 $209,998,906 3.8 5,610 5.0 $37,433 16 Construction 1,015 12.8 $293,345,530 5.3 5,297 4.7 $55,380 8 Professional and technical services 943 11.9 $293,617,472 5.3 4,364 3.9 $67,282 4 Other services, except public administration 655 8.3 $157,735,783 2.8 3,790 3.4 $41,619 12 Manufacturing 188 2.4 $181,956,495 3.3 3,407 3.0 $53,407 10 Wholesale trade 400 5.0 $177,948,962 3.2 2,685 2.4 $66,275 5 Transportation and warehousing 147 1.9 $95,615,544 1.7 2,355 2.1 $40,601 13 Finance and insurance 265 3.3 $159,547,444 2.9 2,312 2.0 $69,008 3 Educational services 109 1.4 $82,284,900 1.5 2,126 1.9 $38,704 14 Agriculture, forestry, fishing and hunting 174 2.2 $75,144,764 1.4 2,023 1.8 $37,145 17 Arts, entertainment, and recreation 97 1.2 $26,965,647 0.5 1,416 1.3 $19,044 20 Real estate and rental and leasing 248 3.1 $52,231,405 0.9 1,362 1.2 $38,349 15

$5,311

$25,690

$42,097

$29,482

$20,919

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Taxable Sales Per Capita Comparison: 1996-2016

Unincorporated Lacey Olympia Tumwater Yelm

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Information 134 1.7 $81,496,382 1.5 1,310 1.2 $62,211 6 Management of companies and enterprises 14 0.2 $64,339,290 1.2 827 0.7 $77,798 2 Utilities 10 0.1 $19,107,174 0.3 193 0.2 $99,001 1 Mining 6 0.1 $1,585,504 0.0 29 0.0 $54,673 9 NOT ELSEWHERE CLASSIFIED 0 0.0 $0 0.0 0 0.0 $0 21

Industries in Thurston County with the greatest number of employees are not the industries with the highest average annual wages. Government, which ranks first in average annual employment, ranks 7th in average annual wage. Retail ranks third in the average annual employment but has pays $31,199, much less than county average of $49,191. The highest compensated industries, Utilities, Management of Companies and Finance and Insurance account for only 2.9 percent% of total employment. While Public Administration (government) is by far the largest single driver, more than 75 percent of GRP is produced by other sectors3.

Corporate downsizing is a nation-wide phenomenonpresents another ongoing challenge, and one that may become exacerbated as human labor is more readily-replaced by automated technology. In the future, additional focus will be required to identify growth industries and, in particular, those that support high-wage occupations. Fortunately, as described in greater detail below, Thurston County and its partners conduct regular target industry analyses that make it easier to support our core industries and address supply chain gaps with the ultimate goal of stabilizing and augmenting local employment and wages. In addition, as part of the SustainableThurston community plan, there is renewed focus on retaining and attracting industries that offer long-term positive impact to our economy while also reducing impacts to, or even improving, our social and environmental health systems.

Finally, it is important to recognize our increasing interdependence with the global economy. While access to new markets and products may create expanded export and consumer opportunities, our reliance on these emerging avenues also expose us to a broader range of risks including political turmoil, currency devaluation and collapsing markets.International economies influence us more immediately and more directly - interdependence is a greater player than in the past. This offers opportunities but also requires adaptability and responsiveness to fluctuating conditions. In times of change, economic diversity helps maintain an area's resilience when downturns occur in individual economic sectors.

C. ECONOMIC CONDITIONS AND PERFORMANCE Industries Two The following tables figures illustrate the position of the various sectorscomposition of in Thurston County's economyGross Regional Product (i.e. the market value of all goods and services produced in a specific region and/or the sum of all local earnings, profits, taxes and government

3 Thurston Economic Development Council, Mineral Lands Supply and Demand via JobsEQ 2017

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subsidies). The first compares employment and wagestablefigure shows how GRP has steadily grown over time (3.5 percent since 20164), albeit with a flattening during and immediately following the Great Recession.:

TableFigure8‐15ComparisonofThurstonCountyEconomicSectorsThurstonRegionalGrossProduct:2001‐

2016ByEmploymentandWageEarnings

ThurstonCounty'sEconomicSectorPercentageofEmployment PercentageofWageEarnings

1992 2001 1992 2001

Government 42.3% 40.3% 53.0% 47.0%

Retail Trade 17.6% 17.2% 9.9% 12.3%

Services 19.0% 23.0% 16.4% 19.7%

Manufacturing 5.5% 4.4% 6.5% 5.1%

Finance, Insurance, Real Estate 3.3% 3.7% 3.2% 3.7%

Construction 4.3% 4.2% 3.8% 4.3%

Wholesale Trade 3.1% 2.5% 3.0% 3.0%

Transportation, Communication, Utilities 2.4% 2.6% 2.6% 3.4%

Agriculture, Forestry, Fishing 2.4% 2.1% 1.5% 1.4%

Mining .1% <.1% .1% <.1%

Source:LaborMarketInformationCenter,WashingtonStateDepartmentofEmploymentSecurity,LaborMarket,andEconomicAnalysis(www.wa.gov/esd/lmea).Mostrecentavailabledata.

4 Thurston Economic Development Council, The Short Report, Thurston Economic Vitality Index 2017

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Figure8‐5.ThurstonGrossRegionalProduct:2001‐2016.SOURCE:JOBSEQ;THURSTONEDC,;JRO+CO.

The second tablefigure below shows an increase in trade and service employment, although it is important to note that growth is slowing. The manufacturing sector was showing increasing growth until 1990 and, furthermore, has lost ground as a percentage of the overall economy and wage earnings:the relative contributions of various industry sectors to the overall Thurston County GRP. While Public Administration (government) is by far the largest driver, more than 75% percent of GDP is produced by other sectors.

TableFigure8‐26

TradeandServiceEmploymentEconomicSectorChanges

ByTotalIncreaseandAverageAnnualRateofIncreaseComponentsofRegionalGrossProduct,2016

ThurstonCounty's TotalPercentIncreasePercentofTotalEmployees

EconomicSector 1970‐1980 1980‐1990 1990‐2000 1980 1990 2000

Population 62% 30% 29% N/A N/A N/A

Government 58% 44% 24% 43.7% 41.6% 39.4%

Wholesale and Retail Trade 92% 53% 26% 20.2% 20.5% 19.8%

Services 150% 87% 68% 14.7% 18.2% 23.3%

Manufacturing 28% 25% -4% 7.9% 6.6% 4.8%

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GRP Growth: 2001-2016

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Finance, Insurance, Real Estate 56% 30% 37% 3.8% 3.3% 3.5%

Construction 1 9% 82% 24% 3.8% 4.6% 4.4%

Transportation, Communication, Utilities 12% 35% 29% 3.0% 2.7% 2.6%

Agriculture, Forestry, Fishing N/A 43% 11% 2.7% 2.5% 2.1%

Mining -74% 39% 75% 0.1% 0.1% 0.1%

Sources:WashingtonStateDepartmentofEmploymentSecurity,LaborMarketInformation,Covered

EmploymentandWagesbyIndustry(www.wa.gov/esd/lmea).“TheProfile,”TRPC.

Figure8‐6.ThurstonCountyComponentsofGrossRegionalProduct.SOURCE:JOBSEQ;THURSTONEDC,;JRO+CO.

Farming and Agriculture Thurston County has a strong history and identity with farming, natural resources and agriculture. Farms serve as economic engines that provides for a diversified employment base. The combined industries of agriculture, forestry, fishing and hunting directly provided an average annual employment of 2,023 jobs in 20175. However, there are likely even more workers in farming and farming adjacent positions that are currently working but are not recorded by the employment security department. This group of plausibly unrecorded farm workers includes owners and operators of small farms, contractors, people working farms while on social security, and more.

5 Washington State Employment Security Department, Covered Employment (QCEW), 2017.

24.4%11.6%

10.3%7.6%7.1%

6.4%4.3%4.0%3.4%3.0%3.0%2.8%2.8%2.3%2.2%

1.6%1.4%1.3%

0.6%0.0%

0% 5% 10% 15% 20% 25% 30%

Public Administration (92)Real Estate and Rental and Leasing (53)Health Care and Social Assistance (62)

Retail Trade (44)Educational Services (61)

Wholesale Trade (42)Professional, Scientific, and Technical Services (54)

Construction (23)Admin., Support + Waste Mgmt./Remediation Services (56)

Manufacturing (31)Accommodation and Food Services (72)

Other Services (except Public Administration) (81)Finance and Insurance (52)

Transportation and Warehousing (48)Information (51)

Arts, Entertainment, and Recreation (71)Agriculture, Forestry, Fishing and Hunting (11)

Utilities (22)Management of Companies and Enterprises (55)

Mining, Quarrying, and Oil and Gas Extraction (21)

Gross Regional Product by Industry Sector Share: 2016

Commented [MT5]: Aquaculture?

Commented [IL6R5]: Ag, Forest, Fish, and Hunting are all collectively identified as one group per the North American Industry Classification System (NAICS). Aquaculture would have to be analyzed independently. Discussion point for staff; should ED chapter discuss aquaculture.

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While agriculture, forestry, fishing and hunting generate roughly one and a half percent of the County’s gross regional product, the importance of these industries to the County warrants special consideration.

Thurston County farmers have access to several policies and programs that aid agriculture. Preserving agriculture land is especially important because approximately 3,979 acres (five percent) of farmland was converted to other uses from 2007 to 2012.6 This conversion is possible becauseattributed to a high percentage of farmland within or close to urban areas. In 2009,: 10,958 acres (16 percent) of farmland was within or adjacent to urban growth areas. and; Aan additional 40,359 acres (59 percent) of farmland were within one to three miles of urban growth areas.7

One way to protect agricultural land is through current use valuation with the Open Space Tax Act. In 1970, the Washington State Legislature adopted the Open Space Tax Act to ". . . maintain, preserve, conserve, and otherwise continue in existence adequate open space lands for the production of food, fiber, and forest crops, and to assure the use and enjoyment of natural resources and scenic beauty for the economic and social well-being of the state and its citizens." The Legislature recognized that the market value of land used for farming, timber production or open space uses is often much lower than its market value for other higher uses, like residences or businesses. Since property taxes must be based on the highest and best use under state law, owners of farmland or open space often have difficulty continuing their natural resource uses while paying higher use taxes. Land-owners often find that they have to convert their land to the higher uses. This reduces the overall supply of farmlands, forest lands and open space. In order to address that problem, the Legislature provided a way for County Assessors to base property tax assessments on the current use value of lands used for natural resource production or protection. Property owners who voluntarily commit to continuing these uses may apply for current use classification in the Open Space Tax Program and have their property assessments based on current use values, resulting in lower property taxes. However, as of 2009, only 51 percent of eligible farmland in Thurston County was enrolled in the current use valuation.8

A second tool to protect agriculture is through zoningdesignating agricultural lands of long-term commercial significance. Thurston County zones designatesd areas as Long-Term Agriculture Zoning and “Nisqually Agriculture” to protect land for agricultural use. to ensure that agriculture is the primary use. Long-Term Agriculture in the Long-Term Agriculture districtIn addition to the farm residence, farm housing for workers is also allowed. As of 2018, 14,894 acres were zoned as Long-Term Agriculture. 9

A third tool to protect agriculture is through the voluntary stewardship program (VSP). The VSP is an alternative approach for counties to protect critical areas on agricultural lands. Instead of

6 United States Department of Agriculture, Census of Agriculture, National Agricultural Statistics Service Quick Stats, 2012

7 South of the Sound Community Farmland Trust, Thurston County Farmland Inventory, 2009.

8 South of the Sound Community Farmland Trust, Thurston County Farmland Inventory, 2009.

9 Thurston County Parcel Data, 2018.

Commented [MT7]: Specifically fishing, or aquaculture

Commented [IL8R7]: Agriculture, forestry, fishing, and hunting are all counted as one group by The North American Industry Classification System (NAICS)

Commented [KN9]: Would it be helpful to provide some of the information on why only 51% have enrolled?

Commented [IL10R9]: Possible future discussion point. CPED Charissa possible resource.

Commented [KN11]: This could be misleading – Single family residences not associated with agriculture are allowed with a PRRD in this zone. But placing that language in here may make it difficult to change the code section. Maybe just changing the language to say something closer to farm residences being a predominant residential use.

Commented [MT12R11]: 20.80A.020(2) allows for single family residences also. Ag is a preferred use in LTA, not required though. I would suggest removing listed uses. Nisqually Ag is 1/40, generally but there are exceptions.

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enacting further critical areas regulation on agricultural lands, the VSP allows the county to work closely with stakeholders to develop voluntary, site-specific stewardship plans. One of the benefits of the VSP planning process is that it’s a local, grassroots planning effort. It also integrates programs that may already exist in the county, such as the Open Space Tax Program, Transfer and Purchase of Development Rights, and Agritourism (see Chapter 9 (Natural Environment) of the Comprehensive Plan for more details). The mission of the VSP is to create a voluntary stewardship plan which protects critical areas while maintaining and enhancing the viability of agriculture. Increasing economic productivity of farms is important to the long-term retention of farms because many unprofitable farms are sold to developers, who convert the farm land into residential homes. In this way, the VSP helps preserve agricultural lands, long-term agricultural lands and the rural character of the County.

Preserving agricultural lands is a priority because Thurston County has lost over 75 percent of its working agricultural lands since the mid-1950s.10 As overall farmland has decreased, there have been changes in the composition of individual farms. The table below provides a snapshot of the size and count of farms in Thurston County from 2012. For example, in 2012 there were 29 farms that operated between 140 and 179 acres. Thosee 29 farms represented 2 percent of all the individual farms, of all sizes, in Thurston County. The total area operated by these 29 farms was 4,548 acres (6 percent of all operated farm area).

Table8‐1.Acresoffarmlandandcountoffarmssortedbyfarmsizecategory.SOURCE:UNITEDSTATESDEPARTMENTOFAGRICULTURE,CENSUSOFAGRICULTURE,2012.

ACRES FARMS AVERAGE

FARMS BY CATEGORYSIZE Acres % CountNumb

er % Acres/Far

m

AREA OPERATED: (1.0 TO 9.9 ACRES) 2,729 4% 590 44% 4.6




AREA OPERATED: (100 TO 139 ACRES) 4,558 6% 40 3% 114.0




AREA OPERATED: (260 TO 499 ACRES) (D) (D) 28 2% (D)


AREA OPERATED: (1,000 TO 1,999 ACRES) 10,150 13% 8 1% 1268.8

AREA OPERATED: (2,000 OR MORE ACRES) (D) (D) 1 <1% (D)

Total (From USDA Census Source) 76,638 100% 1,336

100% 57.4

Total (Calculated, missing data not included) 57,960 76% 1,336

100% 43.4

10 Washington State University Extension, Agriculture in Thurston County, 2013.

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(D) = Withheld to avoid disclosing data for individual operations.

The local farming industry has trended towards smaller farms. Since 2007, the average farm size has decreased from 63 acres to 57 acres in 2012, a 10 18 percent change.11 However, over that same time period, the number of farms has increased from 1,288 to 1,336. Of those 1,336 farms, 44 percent (590) are less than 1810 acres.12 Further, only 20 percent of the farms in Thurston County consist of more than 50 acres and only nine farms are greater than 1,000 acres. More than half (52 percent) of all operated farm area is located on just four percent4% of the farms. Therefore, while most farms are small, most of the farmland is on a relatively few, big farms.

Similar data of agriculture is available based on farm sales. The table below provides a snapshot of the sales and countnumber of farms in Thurston County from 2012. For example, in 2012 there were 234 farms that generated between $1,000 and $2,499 in annual farm sales. The 234 farms represented 18 percent of all the farms in Thurston County. The total area generated by these 234 farms was 391,000 acres (less than 1 percent of all operated farm area).

Table8‐1.Salesandcountoffarmssortedbyfarmsalescategory.SOURCE:UNITEDSTATESDEPARTMENTOFAGRICULTURE,CENSUSOFAGRICULTURE,2012.

SALES FARMS AVERAGE

FARMS BY ANNUAL SALESCATEGORY $ % CountNumber % $/Farm

FARM SALES: (LESS THAN $1,000 $) 69,000 0% 512 38% 135

$FARM SALES: (1,000 TO $2,499 $) 391,000 0% 234 18% 1,671

FARM SALES: ($2,500 TO $4,999 $) 551,000 0% 153 11% 3,601

FARM SALES: ($5,000 TO $9,999 $) 1,210,000 1% 177 13% 6,836

FARM SALES: ($10,000 TO $19,999 $) 1,325,000 1% 98 7% 13,520

FARM SALES: ($20,000 TO $24,999 $) 409,000 0% 19 1% 21,526

FARM SALES: ($25,000 TO $39,999 $) 969,000 1% 31 2% 31,258

FARM SALES: ($40,000 TO $49,999 $) 569,000 0% 13 1% 43,769

FARM SALES: ($50,000 TO $99,999 $) 2,057,000 2% 30 2% 68,567

FARM SALES: ($100,000 TO $249,999 $) 5,252,000 4% 32 2% 164,125

FARM SALES: ($250,000 TO $499,999 $) 2,794,000 2% 8 1% 349,250

FARM SALES: ($500,000 OR MORE $) 106,827,000 87% 29 2% 3,683,690

Total (From Source) 122,423,000 100% 1,336 100% 91,634

Most of the farms in Thurston County (81 percent) are on the smaller end of farm sales (less than $10,000). In contrast, 87 percent of total farm sales ($107 million) is generated by only 2 percent of all the farms (29 farms) in Thurston County. Of the total $122 million in countywide farm sales,

11 United States Department of Agriculture, Census of Agriculture, County Profile, 2012

12 United States Department of Agriculture, Census of Agriculture, National Agricultural Statistics Service Quick Stats, 2012

Commented [KN13]: Can “count” be changed to “number”? It just seems like it isn’t clear before reading the example.

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crop sales generated approximately $49 million (40 percent) and livestock sales generated roughly $74 million (60 percent). The infrastructure and land use to process and store these farm goods is vitalessential. The Thurston Regional Planning Council predicts that Thurston County has sufficient buildable industrial and commercial lands to meet the processing and warehousing needs of the farming community through 2035.13

The supply for warehousing is especially important as the global economy continues the trend of more online retailers and less local retailers (both big box stores and small local businesses). This trend is part of a large transformation in the goods-based consumer retail industry due to more people shopping online14. Big name retailers are declaring bankruptcy and closing hundreds of stores, as American buying habits change and more purchases are made online. This creates a trickle-down effect on local communities where some brick-and-mortar retail bases slowly erode. The rising shift to online retail means less local sales tax revenue15. The continued shift in retail behavior warrants special consideration and further research to identify planning tools and strategies to address the potentially shrinking brick-and-mortar retail marketplace.

Landuse/infrastructuretomeetlocaldemandforagriculture

Tourism and the Rural Economy The growth in trade and service sectors is linked to several factors: first, expansion of state employment which provided a local market for the trade and service sectors; second, local consumers are making more local purchases due to regional shopping facilities built in the county; third, shopping centers and medical facilities are serving more consumers from outside the county; fourth, manufacturing is moving off-shore to countries that supply cheaper labor; and finally, the shift in the national economy from traditional manufacturing to a service-based information economy.

Thurston County has fared better than other places with narrow economic bases because of the relative stability in income level of state government. This is particularly apparent when comparing to those counties with an economic base relying primarily on wood products.

Tourism, also referred to as the “visitor industry,” is another important component of the local economy. While tourism is not neatly classified into a specific sector like the industries above, its impacts can be measured by aggregating sales activity in other sectors. As the chart below shows, Thurston County has enjoyed considerable growth in visitor spending and earnings over the years. Some of this is expected – for example, as the seat of state government, we benefit from hosting legislative sessions, state agency retreats and other government-driven overnight stays and daytime spending.

13 TRPC, Buildable Lands Report for Thurston County, 2014

14 American Planning Association, Retail Realities, 2018

15 American Planning Association, Retail Realities, 2018

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On the other hand, gGrowth in revenues can be attributed to strategic investments. Examples include, such as the advent of the Bountiful Byway in south county and new arts and entertainment offerings in Thurston County cities. In 2018, tThe Port of Olympia willhas plans to also welcome its first passenger cruise lines, further extending the types of visitor spending within our community.

Table8‐7VisitorSpendingandEarnings

Figure8‐7.ThurstonCountyVisitorSpending&Earnings.SOURCE:DEANRUNYANANDASSOCIATES;,EXPERIENCEOLYMPIAANDBEYOND.

The rural economy is a key contributor to the tourism economy. Increased access and marketing of the amenities and destinations in rural Thurston County has strengthened agritourism. The farming community has many developed many craft items such as beer, wine and spirits to draw visitors. Other farms have developed onsite shops and U-Pick programs. The Thurston Bountiful Byway, established in 2014 by the Thurston County Board of Commissioners, is a guide for the exploration of many rural destinations including trails, parks, art galleries, craft farms, historic destinations, farms, wildlife sanctuaries and bed and breakfasts. Local rural businesses have tapped into the increasing consumer demand for quality, organic and locally-produced goods. This consumer demand is especially relevant for farms and other craft goods because 43 percent of visitor spending in Thurston County was for food service or food stores.16 In this way, the rural character of the County directly contributes to the economic health of the County.

Thurston County is well suited for this intimate agritourism experience because roughly 45 percent of farms are less than 10 acres.17 Smaller, rural residential farms are 8.7 percent more likely to

16 Experience Olympia, Annual Report, 2017

17 United States Department of Agriculture, Census of Agriculture, County Profile, 2012

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offer agritourism than larger, non-family farms. Agritourism is worth exploring because local commercial agriculture accounted for almost 15 percent of the County's land use and produced over $120 million worth of farm products a year in 2012.18

ClippingfromThurstonBountifulBywayMap.Themaphighlightsagritourismpathsandamenities.SOURCE:THURSTONBOUNTIFULBYWAYFROMEXPERIENCEOLYMPIA,2018.

Other Natural Resources Another component of the rural economy is construction and mineral extraction. Thurston County has significant deposits of sand, gravel and bedrock. The occupations related to the mining, processing, and use of these minerals employ roughly 9,600 workers.19 In 2017, the extraction, processing and support activities for mineral mining in Thurston County created $56 million in sales.20 Of that amount, $2.5 million were sold to local businesses. Other natural resource sectors are also vital to Thurston County. In 2017 the agriculture, forestry, fishing and hunting industries employed two thousand people and paid out $75 million in wages.21 The economic significance of these industries is reflected in local land use patterns. 33.4 percent of Thurston County’s area is devoted to forestry or agricultural uses today.22

Employment Location Quotients are calculated by comparing that sector’s share of regional employment with its share of national employment. A LQ of 1 means the regional economy is equal to the national economy. A LQ of more than 1 means the regional economy is more concentrated.

18 Schilling, B.J. and Sullivan, K.P., 2014. Characteristics of New Jersey agritourism farms. Journal of Food Distribution Research, 45(2), p.161

19 Washington State Employment Security Department, Thurston County Profile, 2017

20 Thurston Economic Development Council, Mineral Lands Supply and Demand via JobsEQ, 2017

21 Washington State Employment Security Department, Covered Employment (QCEW), 2017


Natural resources are a historically and economically important to Thurston County. As discussed in Chapter 3, Natural Resources, there are many County Wide Planning Policies that connect natural resources and economic development. Chapter 3 dives deeper into the regulations, distributions and quantity of natural resources.Tourism

Commented [AO14]: Call out box – chapter 3

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The agriculture, forestry, fishing and hunting sector in Thurston County has an employment LQ of 2.04, by far the biggest of all sectors as of 2016.23 The mining, quarrying, and oil and gas extraction sector has a LQ of 0.06.

𝐿𝑜𝑐𝑎𝑡𝑖𝑜𝑛 𝑄𝑢𝑜𝑡𝑖𝑒𝑛𝑡

𝑇ℎ𝑢𝑟𝑠𝑡𝑜𝑛 𝐼𝑛𝑑𝑢𝑠𝑡𝑟𝑦 𝐸𝑚𝑝𝑙𝑜𝑦𝑚𝑒𝑛𝑡𝑇ℎ𝑢𝑟𝑠𝑡𝑜𝑛 𝑇𝑜𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑚𝑒𝑛𝑡

𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝐼𝑛𝑑𝑢𝑠𝑡𝑟𝑦 𝐸𝑚𝑝𝑙𝑜𝑦𝑚𝑒𝑛𝑡𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝑇𝑜𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑚𝑒𝑛𝑡

In 2012, Earth Economics24 estimated the low and high dollar per-acre value for different land cover types in Thurston County. Dollar values were estimated for each ecosystem service across each land cover type. Combining the available ecosystem service values (water regulation, habitat, recreation) for one land cover yields a total value for that land cover in dollars per acre per year. In many ways, these lands act as natural infrastructure for the community, and this value is partially represented below.

Table8‐2:LowandHighDollarPer‐AcreEstimatesforAgricultureandForestLandsAgriculturalLand Forest

EcosystemServices Low High Low HighAestheticandRecreational $2.06 $29.63 $0.21 $2,174.8

23 U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages, 2017

24 Flores, L., Batker, D., Milliren, A., and J. Harrison-Cox. (2012). “The Natural Value of Thurston County: A Rapid Ecosystem Service Valuation”. EarthEconomics.

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BiologicalControl $14.18 $14.18 $9.69 $10.04 DisturbanceRegulation $2.10 $2.10 $1.4 $5.14

ErosionControl $5.82 $5.80 $112.58 $112.58 FoodProvision

GasandClimateRegulation $11.02 $128.16 $14.55 $1,066.61 HabitatRefugiumandNursery

$1.22 $538.95

NutrientCycling $8.80 $22.32 $74.28 $1,135.64 Pollination $2.59 $427.34 $67.84 $413.73

RawMaterials

$1.87 $1.87 ScienceandEducation

$39.72 $68.37

SoilFormation $2.27 $5.82

WasteTreatment

$169.01 $169.01 WaterRegulation

$10.35 $588.57

WaterSupply

$1,395.98 $1,770.14 MedicinalResources

Total $48.84 $635.38 $1,898.7 $8,055.45SOURCE:SUMMARIZEDTABLEFROMTHENATURALVALUEOFTHURSTONCOUNTY,EARTHECONOMICS,2012.

IV. FUTURE ECONOMIC OPPORTUNITIES

A. EMPLOYMENT PROJECTIONS Looking ahead, Thurston Regional Planning Council (TRPC) projects the number of jobs in Thurston County will increase by more than 65,000 between 2014 and 2040.25 Overall, job growth will continue a trend of employment opportunities becoming more concentrated in cities. Around 95 percent of new jobs are likely to locate in urban areas. By 2040, the unincorporated area of the county is predicted to have only 16 percent of jobs county wide, down from 19 percent in 2014. Around 95 percent of new jobs are likely to locate in urban areas.

Jobs that are located in rural areas tend to be home-based employment or resource-based. Jobs related to natural resource industries, particularly forestry and agriculture, have declined substantially in Thurston County over the past several decades, and are projected to continue to shrink between now and 2040. This decline will be felt most in the unincorporated area, which is home to 10 percent of all the natural resource jobs, even though they only make up 2 percent of jobs available county wide.

Within the urban areas, 72 percent of new jobs are expected to locate in areas zoned for commercial uses (including mixed-use zoning districts). These include most jobs in state and local government, the exception being some schools and The Evergreen State College. It also includes

25 Source: TRPC,PC Population and Employment Forecast, ( 2014)

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jobs in shopping areas, professional offices, including doctor and dentist offices, and other types of services. Some light-industrial types of jobs locate in these areas, including mini-storage facilities.

Eight percent of new jobs are expected in areas zoned for predominately industrial uses. The majority of these jobs are in manufacturing and warehousing, but there are also many other types of business such as recreation that locate in warehouse-style building. The remaining 20 percent will locate in areas zoned for residential uses.

The TRPC Buildable Lands Program has concludedfound that there is sufficient commercial and industrial land to accommodate future job growth for the next twenty years.26 However, despite the amount of land available for job growth,, although some challenges still exist. For example, Thurston County, the City of Tumwater and the Port of Olympia are all working on prairie habitat management plans for large swatches of land across the southern parts of the nd in south county. Depending on the results of those efforts, some rezoning may be required to address issues in urban growth areas. Olympia is the most land-challenged municipality, andmunicipality and will likely rely on redevelopment of existing lands or properties to meet its future growth demand.

Commercial and industrial development in rural areas is limited by the Growth Management Act to small-scale uses that serve rural area residents. As growth occurs, the County will continue to work with TRPC and its partners to assess commercial and industrial land supplies, andsupplies and adjust course as necessary.

B. EMPLOYMENT AND INCOME TRENDS As Thurston County works to strengthen its economic position, two specific trends will be particularly important to track and address.

1. The first, jJob growth relative to population growth, presents a fundamental policy question: a. Is Thurston County a “bedroom community” that exports workers and revenue, or b. Is Thurston County an “employment center” that retains and grows jobsjobs and

revenue? 2. The second trend of note is household income and, in particular, hHow household

income it has grown in KingKing County relevantative to the rest of the state.

Trend One: Job growth relative to population growth. The graph below shows how the county may be trending to the former, rather than the latter answertowards becoming a bedroom community. From 2000 through 2016, Thurston County’s population has grown by approximately 65,340 (24.0 percent). Over that same time period Thurston County added approximately 18,500 net jobs (13.2 percent). In sum, Thurston County is


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adding more people than jobs, and has been since 2000. This trendsThis trend suggests that Thurston County is becoming a “bedroom community”.

The reasons contributing to this discrepancy are myriad: higher-paying jobs outside of Thurston County, increased retirements associated with “baby-boomers” and/or in-migration of out-of-state retirees, a dearth of relevant industry expansion (e.g. tech, logistics, manufacturing), reduction in labor force participation, and/or local resistance to growth and a corresponding lack of developable lands. However, 26.8 percent of workers who lived in Thurston County, worked outside the county in 201627. This value has been roughly consistent for a decade. The vast majority of these workers travel to neighboring Pierce County. Other top destinations include King, Lewis, Mason and Grays Harbor Counties.28

Ultimately, communities that “shed” jobs must adjust to declines in taxable revenue and spending (i.e. workers that purchase goods near their place of employment). This loss of taxable revenue that reduces local social service investment capacity and charitable giving, while also increasing collateral spending and loss of economic security (i.e. transportation infrastructure, reduced wages due to extended commute times and/or transportation costs, etc.). Commuting factors are especially important because commuting in the Puget Sound region is conducted along the I-5 highway. As the region continues to experience high population growth, traffic will impact travel times. If the volume of jobs in Thurston County does not grow, fewer people will live in the county because of growing commute times.

Figure8‐8.ThurstonCountyPopulation&EmploymentGrowth:2000‐2016.SOURCE:OFM,JRO+CO.

Trend Two: Thurston County household income relative to King County. The second trend of note is average median household income. Up until the Great Recession, Thurston County household incomes tracked just below the King County average, and at or above the statewide average. Following the recession, King County incomes spiked dramatically, driven primarily by growth in the tech sector. The increase has been so strong that King County pulled the

27 U.S. Census Bureau, American Census Survey Commuting Characteristics 2012-2016.

28 U.S. Census Bureau, Residence County to Workplace County Commuting Flows for the United States and Puerto Rico Sorted by Residence Geography: 5-Year ACS, 2009-2013

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entire statewide household income average above Thurston County for the first time in 2016. This growth has, in turn, led to an increased northbound commute as Thurston County and other South Sound residents seek higher wages (approximately 25,000 Thurston County residents travel to Pierce and King County for work as of 2016). Conversely, Thurston County and the South Sound have become increasingly popular migration destinations for retirees and others in search of lower housing costs.

Figure8‐9.MedianWage:1989‐2016.SOURCE:WASHINGTONOFFICEOFFINANCIALMANAGEMENT,USCENSUSBUREAU.

Another way of viewing Thurston County’s workforce is by “class of worker.”, as shown in the chart below. Class of worker categorizes people according to the type of ownership of the employer organization. Class of worker helps specify whether an employed person is salaried or self-employed and helps specify if the person works in the private sector or in government (i.e., the

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public sector)29. As described earlier, Thurston County has a relatively high percentage of government workers, as mentioned earlier in the chapter. In addition, the County. But, as shown in the chart below, it also has a high percentage of more private wage and salary workers than the state as a whole,. However, Thurston County has and far a smaller proportion of fewer sself-employed workers than the state. The latter figureThe proportion of self-employed workers may change over time, as interest in entrepreneurship grows and, dislocated workers search for new opportunities andwith new technological advances, which enable more individuals to work from home.

Figure8‐10.ClassofWorker.SOURCE:U.S.CENSUSBUREAU,AMERICANCOMMUNITYSURVEY,2016.

29 U.S. Census Bureau, 2016 American Community Survey Content Test Evaluation Report: Class of Worker, 2017.

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Class of Worker, Thurston vs. Washington State: 2016

Thurston County

Washington State

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C. ECONOMIC DEVELOPMENT OPPORTUNITIES Thurston County is located in the greater Puget Sound economic region. As such, the County has ample opportunities for economic development. For example, ForbesMagazine ranked the Olympia-Tumwater MSA (Thurston County) #32 for the best places in the nation for business and careers.30 Finally, Thurston County, as part of the Pac Mtn Workforce System, has identified multiple “target industry clusters.” In brief, these are the industry clusters that employ large percentages of local workers, pay above average wages, show signs of growth and produce significant taxable revenue. They include:

Health Sciences Tourism and Recreation

Information and Technology

30 Forbes, The Best Places for Business and Careers, 2017

Advanced Manufacturing Wood Products Agriculture and Food Manufacturing

1,069 1,3102,0

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Information Arts,entertainment,and recreation

Agriculture,forestry, fishinand hunting

Target Industry Emp

2012 2013

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The table below shows how employment has increased in each representative sector since the target industries were identified, and work initiated to develop a qualified workforce as well as address supply chain gaps (e.g. products or services that were previously purchased outside of Thurston County).

Table8‐8TargetIndustryEmploymentChangeFigure8‐11.ThurstonCountyTargetIndustryEmploymentChange.SOURCE: WASHINGTON EMPLOYMENT SECURITY DEPARTMENT.

Moving forward, Thurston County will continue to work with local jurisdictions and regional partners including the Pac Mtn Workforce Development Council (Pac Mtn) to track industry performance and adjust economic development policies. The following tables show how these types of opportunities might be identified using real-time industry data. The first tablechart shows relative percentages of goods and services purchased in-Thurston vs. out-of-regionThurston, and the second provides a snapshot-in-time forecast for potential employment growth by industry sector. These findings can be further broken-down by sub-industry sector, enabling pin-pointing of specific areas for future action (e.g. particular goods and services are purchased outside of

1,069 1,3102,031

3,3274,046

8,914

13,641

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Information Arts,entertainment,and recreation

Agriculture,forestry, fishingand hunting

Manufacturing Professional andtechnicalservices

Accommodationand foodservices

Health care andsocial assistance

Target Industry Employment Change: 2012-2016

2012 2013 2014 2015 2016

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Thurston County that could be produced in the county). For example, more than 80 percent of Thurston County’s demand for goods and services from the agriculture, forestry, fishing and hunting industry is met by providers from outside of Thurston County. This represents a strong opportunity to expand agriculture within the County and meet that demand locally.

Figure8‐9

SupplyChainGapsbyIndustrySector

Figure8‐12.SupplyChainGapsbyIndustrySector.SOURCE:JOBSEQ,;THURSTONEDC;,JRO+CO,2017.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Agriculture, Forestry, Fishing and Hunting

Manufacturing

Mining, Quarrying, Oil and Gas Extraction

Arts, Entertainment and Recreation

Utilities

Construction

Transportation and Warehousing

Accomodation and Food Services

Educational Services

Other Services (Except Public Administration)

Public Administration

Wholesale Trade

Retail Trade

Information

Health Care and Social Assistance

Admin. and Support, Waste Mgmt. + Remediation

Professional, Scientific and Technical Services

Finance and Insurance

Real Estate Rental and Leasing

Management of Companies and Enterprises

Goods and Services Purchased In-Thurston Vs. Out-of-Thurston by Industry Sector: Q2, 2017

% Demand met In‐region % Demand met Out‐of‐region

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Figure8‐10EmploymentGapbyIndustrySector

9

47

19

15

59

1,009

170

1,156

129

2,303

80

513

736

490

652

85

387

266

143

137

0 5,000 10,000 15,000 20,000 25,000



Retail Trade


Accommodation and Food Services

Admin, Support Waste Mgmt and Remed. Services

Construction

Professional, Scientific, and Technical Services

Other Services (except Public Administration)

Manufacturing

Arts, Entertainment, and Recreation

Wholesale Trade




Information

Real Estate and Rental and Leasing


Utilities

Mining, Quarrying, and Oil and Gas Extraction

Current Employment and Employment Gap by Industry Sector: Q2, 2017

Current Employment Opportunity Gap (Empl)

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Figure8‐13.EmploymentGapbyIndustrySector.SOURCE:JOBSEQ;THURSTONEDC;,JRO+CO,2017.

Employment and Income As Thurston County works to strengthen its economic position, two specific trends will be particularly important to track and address. The first, job growth relative to population growth, presents a fundamental policy question: Is Thurston County a “bedroom community” that exports workers and revenue, or an “employment center” that retains and grows jobs and revenue? The second trend of note is household income and, in particular, how it has grown in King County relevant to the rest of the state.

The graph below shows how the county may be trending to the former, rather than the latter answer. Since 2000, the Thurston County’s population has grown 22.5%, while its’ job base has grown at a mere 13.2%. The reasons contributing to this discrepancy are myriad: higher-paying

2,303

1,156

1,009

736

652

513

490

387

266

170

143

137

129

85

80

59

47

19

15

9

0 5,000 10,000 15,000 20,000 25,000

Manufacturing

Professional, Scientific, and Technical Services

Admin, Support Waste Mgmt and Remed. Services



Wholesale Trade


Real Estate and Rental and Leasing


Construction

Utilities

Mining, Quarrying, and Oil and Gas Extraction

Other Services (except Public Administration)

Information

Arts, Entertainment, and Recreation

Accommodation and Food Services


Retail Trade



Current Employment and Employment Gap by Industry Sector: Q2, 2017

Current Employment Opportunity Gap (Empl)

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jobs outside of Thurston County, increased retirements associated with “baby-boomers” and/or in-migration of out-of-state retirees, a dearth of relevant industry expansion (e.g. tech, logistics, manufacturing), reduction in labor force participation, and/or local resistance to growth and a corresponding lack of developable lands).

Ultimately, communities that “shed” jobs must adjust to declines in taxable revenue and spending (i.e. workers that purchase goods near their place of employment) that reduce local social service investment capacity and charitable giving, while also increasing collateral spending and loss of economic security (i.e. transportation infrastructure, reduced wages due to extended commute times and/or transportation costs, etc.)

Figure8‐11Populationvs.EmploymentGrowth:2000‐2016

SOURCE:OFM,JRO+CO

The second trend of note is average median household income. Up until the Great Recession, Thurston County household incomes tracked just below the King County average, and at or above the statewide average. Following the recession, King County incomes spiked dramatically, driven primarily by growth in the tech sector. The increase has been so strong that King County pulled the entire statewide household income average above Thurston County for the first time in 2016. This growth has, in turn, led to an increased northbound commute as Thurston County and other South Sound residents seek higher wages (approximately 25,000 Thurston County residents travel to Pierce and King County for work as of 2016). Conversely, Thurston County and the South Sound have become increasingly popular migration destinations for retirees and others in search of lower housing costs.

Table8‐12MedianWage:1989‐2016

207,355

267,410

102,904121,382

0

50,000

100,000

150,000

200,000

250,000

300,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Job vs. Population Growth, 2000‐2016

Population Employment

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SOURCE:WASHINGTONOFFICEOFFINANCIALMANAGEMENT,USCENSUSBUREAU

Another way of viewing Thurston County’s workforce is by “class of worker. As described earlier, Thurston County has a relatively high percentage of government workers. But, as shown in the chart below, it also has more private wage and salary workers than the state as a whole, and far fewer self-employed workers. The latter figure may change over time, as interest in entrepreneurship grows, dislocated workers search for new opportunities and technological advances enable individual to work from home.

$65,500$63,286

$61,042

$84,897

$42,118

$47,893

$55,824

$44,627

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

Median Household Income, Select Geographies: 1989‐2016

Washington Thurston Pierce King

Pacific Lewis Mason Grays Harbor

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Figure8‐13ClassofWorker

SOURCE:AMERICANCOMMUNITYSURVEY

Stable and ample employment opportunities are essential to community wellbeing, a fact confirmed and clarified during the Thurston Thrives community health initiative. Economic development efforts help contribute to a vibrant community, but more importantly, can provide upward mobility for those most in need. The graph below shows the prevalence of poverty in Thurston County by different family cohorts. Understanding where poverty is most concentrated allows locall organizations organizations to develop effective strategies for addressing it and other social welfare challenges.

Thurston County’s approach to economic development is described below, and additional information about social services is covered in other Comprehensive Plan chapters.

Table8‐14PovertybyFamilyCohort

0%

20%

40%

60%

80%

Private wage and salary Government workers Self‐employed Unpaid family workers

63.20%

30.20%

6.20%0.20%

40.60%

17.10% 21.30%

9.70%

Class of Worker: Thurston vs. Washington State ‐ 2016

Thurston County

Washington State

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Figure8‐14.PovertybyFamilyCohort:2014‐2016.SOURCE:U.S.CENSUSBUREAU,AMERICANCOMMUNITYSURVEY.

A lack of affordable housing can lead to difficulty in attracting and retaining a workforce. As noted above, Thurston County is viewed as a more affordable housing market for those living in King County and other high-cost markets. As depicted below in the Washington State University Affordable Housing Index, this may be true for households with existing capital equity, but not so for first-time buyers.31 A lack of affordable housing options can ultimately lead to difficulty in attracting and retaining an up and coming workforce.

Active planning of economic development and housing is vital for a thriving community. Healthy and happy workers are more productive workers32. Safe and decent housing is essential to household well-being.33 As such, the County implements policies to increase quality and affordable housing. These policies are necessary because typically there are three ways that affordable housing for low- and moderate-income households occur;

Housing specifically developed to be affordable; Subsidized housing; or

31 The Housing Affordability Index measures the ability of a middle-income family to carry the mortgage payments on a median price home. When the index is "100," there is balance between the family's ability to pay and cost. Higher indices indicate housing is more affordable. First-time buyer's index assumes the purchaser's income is 70% of the median household income. Home purchased by first-time buyer is 85% of the area's median price. All loans are assumed to be 30-year term at prevailing interest rate. The "all buyer" index assumes down-payment of 20%; first-time buyer index, 10%. Also assumes 25% of income can be used for principal and interest payments.

32 Taris, T.W. and Schreurs, P.J., 2009. Well-being and organizational performance: An organizational-level test of the happy-productive worker hypothesis. Work & Stress, 23(2), pp.120-136.

33 Bratt, R.G., 2002. Housing and family well-being. Housing studies, 17(1), pp.13-26.

7.1%10.5% 11.7%

28.6%

38.2%

19.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

All families All people Under 18 years Families withfemale

householder, nohusband present

With relatedchildren under 18

years

With relatedchildren under 5

years only

Poverty Status by Family Cohort: 2014-2016

2014 2015 2016

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Old housing that has dilapidated.

Dilapidated housing can pose physical and mental health risks to occupants. In addition, dilapidated housing can negatively impact the value of nearby homes. As with most planning topics, economic development is intertwined with many other planning topics. More information on housing can be found in Chapter 4. The key point is that healthy housing increases worker productivity.

Table8‐15HousingAffordabilityforBuyerswithHomeEquity

Figure8‐15.HousingAffordabilityforBuyerswithHomeEquity.SOURCE:WASHINGTONCENTERFORREALESTATERESEARCH,WSU.

0

50

100

150

200

250

Q1: 20

10

Q2: 20

10

Q3: 20

10

Q4: 20

10

Q1: 20

11

Q2: 2

011

Q3: 2

011

Q4: 2

011

Q1: 2

012

Q2: 2

012

Q3: 2

012

Q4: 2

012

Q1: 2

013

Q2: 2

013

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013

Q4: 2

013

Q1: 2

014

Q2: 2

014

Q3: 2

014

Q4: 2

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015

Q2: 2

015

Q3: 2

015

Q4: 2

015

Q1: 2

016

Q2: 2

016

Q3: 2

016

Q4: 2

016

Q1: 2

017

Q2: 2

017

Affordab

ility In

dex

Housing Affordability, Middle Income Families:Q1, 2010 to Q2, 2017

Unaffordable Thurston Washington State

40

60

80

100

120

140

160

180

200

Q1: 2010Q3: 2010Q1: 2011Q3: 2011 Q1: 2012 Q3: 2012 Q1: 2013 Q3: 2013 Q1: 2014 Q3: 2014 Q1: 2015 Q3: 2015 Q1: 2016 Q3: 2016 Q1: 2017

Housing Affordability ‐ Middle Income Families: Q1, 2010 to Q2, 2017

Thurston Washington State

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Table8‐16HousingAffordabilityforFirst‐TimeBuyers

Figure8‐16.HousingAffordabilityforFirst‐TimeBuyers.SOURCE:WASHINGTONCENTERFORREALESTATERESEARCH,WSU.

0

50

100

150

200

250

Q1: 2

010

Q2: 2

010

Q3: 2

010

Q4: 2

010

Q1: 2

011

Q2: 2

011

Q3: 2

011

Q4: 2

011

Q1: 2

012

Q2: 2

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Q3: 2

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Q4: 2

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Q1: 2

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Q3: 2

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Q1: 2

014

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Q3: 2

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015

Q1: 2

016

Q2: 2

016

Q3: 2

016

Q4: 2

016

Q1: 2

016

Q2: 2

017

Affordab

ility In

dex

Housing Affordability, First Time Buyers:Q1, 2010 to Q2, 2017

Unaffordable Thurston Washington State

40

60

80

100

120

140

160

180

200

Q1: 2010Q3: 2010Q1: 2011Q3: 2011 Q1: 2012 Q3: 2012 Q1: 2013 Q3: 2013 Q1: 2014 Q3: 2014 Q1: 2015 Q3: 2015 Q1: 2016 Q3: 2016 Q1: 2016

Housing Affordability ‐ First Time Buyers: Q1, 2010 to Q2, 2017

Thurston Washington State

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Educational attainment – I could insert more here, but expect this might be covered elsewhere

III. ECONOMIC DEVELOPMENT IN THURSTON COUNTY

A. PLANNING CONTEXT That effort, involving all county jurisdictions, places an emphasis on development and activity that build community prosperity while preserving the natural assets that are essential to our desired quality of life. SustainableThurston includes a “Sustainable Economy” chapter, which outlines the following high-level goals:

Coordinate economic development efforts to attract and retain businesses and jobs Foster industry clusters to create jobs, and increase revenue circulation locally Create an innovation culture to encourage entrepreneurship Provide robust infrastructure to support economic development Ensure adequate supply of shovel-ready land along primary transportation corridors and

invest in commercial and industrial redevelopment Foster a progressive education system to match worker skills with employer needs

CWPPS

Thurston Thrives

B. PARTNERSHIPS Both Thurston County'sA wide variety of public, private and public non-profit sectors organizations are actively promoting engaged in fostering improved economic health and diversification of the Thurston County’s economic base in the Thurston Region. This is important to our area in order to meet social needs (reduce crime, abuse, government support payments, etc.), support educational excellence and to provide a tax base necessary for meeting lifestyle goals. Community partners include all Thurston County municipalities, the Thurston Economic Development Council (EDC), local Chambers of Commerce, Port of Olympia, Pac MtnMountain Workforce Development Council, local colleges and universities, the Thurston Asset Building Coalition, Intercity Transit – who delivers workers to their places of employment, and dozens of other organizations.

Recently, through a partnership between the EDC and South Puget Sound Community College (SPSCC), a new Center for Business and Innovation (CBI) was established at the new SPSCC Lacey Campus. The CBI offers a one-stop center for business economic development, with services including:

Training for current or prospective women-owned businesses Business scale-up training for small and emerging businesses

Commented [IL17]: Planning Context is Heading 1 and it’s own section in other chapters.

Commented [AO18]: Moved

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Real estate and market data research and support Entrepreneurship courses and degree certificates Government contracting support and education

The CBI also hosts the South Sound Food Network (SSFN) and South Thurston Economic Development Initiative (STEDI) serving the greater Thurston County rural and agricultural communities. Additional services are available to help connect military (Lacey Veterans’ Center), provide seed funding to micro-enterprises and prepare students and dislocated workers for current employment opportunities – whether through “Maker Space” access or via personal development workshops and internships offered through Pac Mtn WDC and Thurston Chamber Business to Business (B2B) training programs.

These and many other initiatives are part of the SustainableThurston initiative coordinated by the Thurston Regional Planning CouncilTRPC. That effort, involving all county jurisdictions, places an emphasis on development and activity that build community prosperity while preserving the natural assets that are essential to our desired quality of life. SustainableThurston includes a “Sustainable Economy” chapter, which outlines the following high-level goals:

Coordinate economic development efforts to attract and retain businesses and jobs

Foster industry clusters to create jobs, and increase revenue circulation locally

Create an innovation culture to encourage entrepreneurship

Provide robust infrastructure to support economic development

Ensure adequate supply of shovel-ready land along primary transportation corridors and invest in commercial and industrial redevelopment

Foster a progressive education system to match worker skills with employer needs

Toward this end, the private sector and the Thurston Economic Development Council coordinates assisting and attracting new businesses and industries to the area. All of the local governments, including Thurston County, support and participate in economic development programs. County government further supports business development by maintaining responsive and coordinated governmental service and an upgraded development permitting and customer service system. It also enhances employment opportunity through job training programs and has allocated nearly 4000 acres to commercial and industrial zoned lands.

According to the most recent TRCP forecast, “nearly 60,000 new jobs are projected to be created in Thurston County between 2010 and 2035. New jobs will locate in all parts of the county, but around 95 percent of new jobs will locate in the urban areas. Rural jobs tend to be home-based employment or resource-based.

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Within the urban areas, 72 percent of new jobs are expected to locate in areas zoned for commercial uses (including mixed-use zoning districts). These include most jobs in state and local government, the exception being some schools and The Evergreen State College. It also includes jobs in shopping areas, professional offices, including doctor and dentist offices, and other types of services. Some light-industrial types of jobs locate in these areas, including mini-storage facilities.

Eight percent of new jobs are expected in areas zoned for predominately industrial uses. The majority of these jobs are in manufacturing and warehousing, but there are also many other types of business such as recreation that locate in warehouse-style building. The remaining 20 percent will locate in areas zoned for residential uses. “

The TRPS Buildable Lands Program has concluded there is sufficient commercial and industrial land to accommodate future job growth for the next twenty years, although some challenges exist. For example, Thurston County, the City of Tumwater and Port of Olympia are all working on habitat management plans for large swatch of land in south county. Depending on the results of those efforts, some rezoning may be required to address issues in urban growth areas. Olympia is the most land-challenged municipality, and will likely rely on redevelopment of existing lands or properties to meet its future growth demand. As growth occurs, the County will continue to work with TRPC and its partners to assess commercial and industrial land supplies, and adjust course as necessary.

However, in the unincorporated county, the amount of commercial and industrial zoned lands are relatively minor in comparison to the urban growth areas with under 1,000 total acres zoned industrial or commercial which are either undeveloped or re-developable. Commercial and industrial development in rural areas is limited by the Growth Management Act to small-scale uses providing economic opportunity to rural area residents.

Table8‐3

2000LandSupplyinThurstonCounty–IndustrialandCommercialZoning

Industrial Land Supply (acres) Commercial Land Supply (acres)

Jurisdiction Vacantor Landwith Total Vacantor Landwith Total

Partially Redevelopment Partially Redevelopment

UsedLand Potential UsedLand Potential

Bucoda 1 0 1 7 2 9

Lacey & UGA 1,184 70 1,254 2,202 396 2,598

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Olympia & UGA 44 64 108 626 380 1,006

Rainier & UGA 0 0 0 47 2 50

Tenino & UGA 32 2 34 20 6 26

Tumwater & UGA 2,480 289 2,768 853 155 1,008

Yelm & UGA 226 26 251 325 75 400

Grand Mound UGA 264 32 296 119 26 145

TotalUrban 4,229 483 4,712 4,200 1,042 5,242

TotalRural 568 43 611 279 92 371

ThurstonTotal 4,797 526 5,323 4,479 1,134 5,613

Source:BuildableLandsWorkProgram,TRPC.

A focus of economic development activity in Thurston County is the relationship between the economy and the environment. Economic development and environmental quality can be mutually supportive. Protecting and enhancing the environment is critical to the effective and sustainable development of the area as well as to the health and well-being of Thurston County residents.

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IIIV. GOALS, OBJECTIVES AND POLICIES

The focus of the following goals and policies is to support and foster eEconomic growth and, diversity, within the principles of resource stewardship and environmental sustainabilitysustainability, and environmental protection constitute the policy focus of the following goal and policies. Economic growth in the industrial and commercial sectors will be found primarily within Urban Growth Areas. This is where urban services and utilities, transportation systems, population concentrations, and the capacity (present and future) to serve and support these businesses are located.

GOAL1: SUPPORT SUSTAINABLE BUSINESS AND INDUSTRIAL DEVELOPMENT WHICH (1) STRENGTHENS AND DIVERSIFIES THE ECONOMIC BASE; (2) CREATES JOBS AND ECONOMIC OPPORTUNITIES FOR ALL CITIZENS; AND (3) DEVELOPS AND OPERATES IN A MANNER THAT MAINTAINS A HIGH-QUALITY OF LIFE AND ENVIRONMENT.

OBJECTIVEA:Expand new, and strengthen existing, Economic Development Programs,Economic Development Programs. ePrograms, especially programs thoseat: involving inter-jurisdictional coordination, should be supported that:

• Help locate and expand sustainable and environmentally sound business and industry; • Contribute to full utilization of the county's business and industrial land base; and • Strengthens and diversifyies the economic base.

POLICIES:

1. The county should support economic development efforts that identify the types of jobs, industries, and businesses to be targeted for focused attention to maximize the return on economic development efforts.

2. The county should ensure adequate amounts of properly zoned and located land required by those businesses and industries identified for targeted attention (in Policy 1 above) in economic development plans adopted by the county.

3. The county should partner with county- wide economic development partners, including the EDC, Thurston Chamber and Port of Olympia, to develop and implement targeted economic development initiatives in rural portions of the county.

2.4. The county should support efforts to form and operate a federally-recognized Economic Development District, of which it would constitute one component of a multi-county entity qualified to receive federal aid, grants and other technical assistance.

3.5. The county should support private and public job training programs to meet the labor force needs of the targeted businesses and industries and increase access to employment resources for under skilled job seekers.

Commented [J19]: Discussion Topics: County Economic Development staff + roles Do we need to add section showing relation to other comp plan elements? Do we need new objective specific to particular industries? Do we want to call out ways County can/should support development in urban areas?

Commented [IL20]: Source: Ian Reworded previous, add coordination.

Commented [AO21]: Discuss possible new policy with EDC and others

Commented [IL22R21]: Provided by EDC/Subconsultant

Commented [IL23]: Category: Stakeholder Input Source: Thurston Thrives Economy Strategy Map

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4.6. The county should support referral assistance programs through the Thurston County Economic Development Council (EDC) for persons and firms inquiring about business opportunities in Thurston County.

5.7. The county should assist in obtaining grants and loans that will support expansion or establishment of businesses and industries.

8. The county should continue supporting a public/private effort to identify a discrete set of types of jobs, industries, and businesses for targeted industry development initiatives economic development attention in order to enhance our existing employer base, reduce supply chain gaps most efficiently utilize limited resources and maximize the return on economic development efforts.

6.9. The county should encourage major institutions (such as schools, colleges, hospitals, etc.) to buy-local from Thurston County agricultural businesses.

7.10. The county should work with the Economic Development Council to support the development of "environmentally sound" and "economically viable" enterprisesemployers as called for in the adopted County -Wide Planning Policies.

11. The county should support efforts and strategies to diversify Thurston County’s economy through the encouragement of more manufacturing-based industries and enhancement of other target industry clusters including: information-technology, healthcare, tourism, food production-manufacturing and wood products-forestry. the economic return to forestry, fishing, and farming.

8. The county should support targeted business education and training programs that assist small and emerging businesses, as well as micro-enterprises operated by women, minorities, veterans and other under-represented populations.

12.

9.13. The county should collaborate with non-profits, regional education institutions, and private entities to develop “maker spaces” that empower workers and entrepreneurs.

10. The county should fully explore state and federal tax opportunities for economic development.by:

a. Continuing development of the workforce;

b. Fostering partnerships with higher education and private industries; c. Emphasizing STEM and healthcare in secondary education; d. Providing contextual and hands-on learning for all levels of education; e. Establishing apprenticeships, internships, and co-ops; f. Increasing access to equipment for working with wood, metal, plastics, and more, in addition to laser cutters, 3D printers, and soldering stations, by localizing these resources in communal spaces; f. Motivating innovators to develop programs to add value to farming, agritourism, aquaculture, and natural resource industries; and

Commented [IL24]: Policy added from PC comments

Commented [IL25R24]: Policy language updated per 4/17/2019 PC Commissioner feedback

Commented [AO26]: Add a foundation for this in the chapter

Commented [IL27R26]: Added context above.

Formatted: Font color: BlackFormatted: Indent: Left: 0.5", Space After: 8pt, Don't add space between paragraphs ofthe same style, No bullets or numbering,Adjust space between Latin and Asian text,Adjust space between Asian text andnumbers

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11. g. Repurposing underutilized spaces into communal spaces.

OBJECTIVEB:BusinessExpansion,NewBusinesses,andHomeBusinesses

Land use permits and procedures should provide for expanding existing businesses, that provide our employment base, establishing new businesses which diversify the economy, and for supporting home occupations and small-scale home-based industries that stimulate growthgrow of the creative class.

POLICIES:

1. The county should allow limited changes or expansions to nonconforming businesses in the rural area provided (a) any detrimental impacts to adjacent properties will not be increased or intensified; (b) changes or expansions comply with performance standards; (c) the changes does not result in a formerly small operation dominating the vicinity; and (d) any expansion or change of use will beis in keeping with the rural character.

2. The county should encourage business development in the Grand Mound Urban Growth Area, which is served by the county-owned water and sewer system.

3. The county should provide for certainty, consistency, and timely processing of land use permits.

3.4. They county should facilitate agritourism through streamlined permitting, reduction of regulatory barriers and hands-on help from county staff by.

5. The county should provide some zones that allow both manufacturing and retail in order to permit manufacturers to engage in limited retailing of their products within industrially zoned areas.

4.6. The county should explore the possibility of creating multi-use districtsland use options that allow for research and development, light manufacturing and office functions in a single location.

5.7. The county should provide help to persons requiring development assistance to understand and work through regulations and permit processes by offering timely assistance in a helpful, non-adversarial environment.

6.8. The county should allow home occupations to be permitted everywhere in the county, provided these businesses do not adversely impact rural character.

7.9. The county should allow home-based industries to be permitted only in residential districts with densities of two units per acre or lower and in the Rochester Sub-Aarea.

8. The county should ensure that home businesses maintain and or enhance the residential character of their areas, and should not:

9.10.

a. Detract from the residential character of the surrounding area;, andand

Commented [IL28]: Category: BMP Source: MSP Design https://mspdesign.com/2017/08/7-steps-planning-makerspace/

Commented [IL29R28]: Other contributing sources: https://makerspaces.make.co/ http://eugenemakerspace.com/wp-content/uploads/2018/02/Maker_DayToolkit_ver2_revised.pdf https://bellinghammakerspace.org/ http://eugenemakerspace.com/wp-content/uploads/2018/10/The-Makerspace-Movement_-Sites-of-Possibilities-for-Equitable-Opportunities-to-Engage-Underrepresented-Youth-in-STEM.pdf

Commented [AO30]: Move to Action plan

Commented [J31]: I’m not up to speed with respect to how this has played out on-the-ground; we should check with stakeholders to see if any adjustments merited here

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b. Result in a de facto cluster or strip of commercial and/or nonresidential uses nor start the conversion to that condition;., and

Otherwise negatively impact rural character.

10.11. The county should ensure that standards for home- based industries should address such issues as screening, buffering, noise, lighting, and increased setbacks to assure compatibility with neighboring properties. Standards should also provide for considerations of safety on private roads and equitable sharing of private road maintenance costs.

11.12. The county should review all county development-related requirements and procedures for the purpose of simplifying and lessening the bulk of requirements and providing a helpful environment for persons requiring development assistance.

12. The County should review all new development regulations to determine their impact on existing businesses.

13.

OBJECTIVEC:UtilityPlanningforEconomicDevelopment.Utility planning should be done by identifying the funding for, and locations of, new utilities and upgrades which serve commercially and industrially zoned areas.

POLICIES:

1. The county should continue to work jointly with the appropriate jurisdictions and private sector to annually develop capital facility plans and funding strategies for utilities, transportation, and other services to serve industrial and commercial areas.

2. The county should work with other appropriate jurisdictions to determine the feasibility of shared public capital facilities and shared funding of those facilities, especially as they benefit economic development efforts.

OBJECTIVED:IndustrialandCommercialLands.Commercial and industrial land should be designated in adequate amounts and appropriate locations to meet current and future needs, maintain a quality environment, and provide economic opportunity to rural residents while preserving character in the rural area.

POLICIES:

1. The county should ensure that the size of rural commercial areas are appropriate to the land use and to the area being served as follows:The county should ensure that the size of a rural commercial areas are is appropriate to the uses to be accommodated and the area being served as follows:

Commented [IL32]: Simplified language per PC

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a. Neighborhood Convenience Commercial. These are single stores or a group of very small stores (including residences in conjunction with the businesses) located throughout rural areas of the county. They should be located on no more than one acre and would serve rural populations of less than 5,000 (although they would not be considered non-conforming uses if the population grew beyond that threshold).

b. Arterial Commercial. For limited urban growth areas where large acreage sites and visibility on arterial roads is needed; not to be a strip configuration. Existing strips should be upgraded and infilled prior to establishing new arterial commercial sites.

c. Highway Commercial. For freeway or major highway interchanges to accommodate businesses serving travelers.

d. Rural Commercial Center. For identified rural communities to serve the everyday needs of the surrounding rural residential community.

2. The county should periodically conduct public outreach to review the need for, and consider addingconsider adding, appropriately-scaled commercial zones to areas that have grown in population, but do not yet have basic services within a reasonable travel time.

3. The county should designate industrial areas in sufficient quantity and quality to meet current and future needs.

34. The county should evaluate industrial land use designations made through Joint Plans to assure that adequate supplies of industrial lands are available for both short- and long-term use and that this plan's revised guidelines for locating industrial lands are met.

45. The county should ensure that the size of industrial areas are large enough to accommodate a number of industrial uses in clusters so that the area may be developed in a coordinated fashion and be provided with a variety of parcel sizes.

6. The county should ensure that industrial and commercial areas are able to be served by required utilities, transportation, and other services at a level appropriate to the uses within the industrial/commercial area.

7. The county should support land use regulations and land use designations that serve and/or add value (such as lumber mills, hay distributors, etc.) to the rural economy (especially for agriculture and forestry).The county should support land use regulations and land use designations that protect industrial and manufacturing sites, especially for agriculture, forestry, fishing and hunting.

678. The county should ensure that commercial and industrial areas are located where there is a low risk of potential adverse impacts to environmental quality. For example, commercial and industrial areas should be sited where aquifer protection can be assured. Also, the county should analyze the lands designated for commercial and industrial uses to

Commented [J33]: If this stays in, we’d probably want to add sub-bullets re criteria, community notice and review, etc.

Commented [IL34R33]: Specifics to be determined by later action/strategy plans

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determine which, if any, pose hazards to aquifers such that aquifer protection is jeopardized.

789. The county should encourage that, in rural parts of the county, priority business activities should be:

• Home occupations and home-based industries;

• Neighborhood convenience stores and rural commercial centers;

• Industries associated with agriculture and/or the natural resource base;

• Industries that are dependent upon a rural setting without urban services;

• Commercial recreational uses such as horse racing tracks and arenas, car racing tracks, and shooting ranges; and

• Agritourism and Tourism.

8910. The county should promote the strategy that encourage that in urban growth areas, priority business activities should be commercial, tourism and industrial uses in urban growth areas.

91011. The county should encourage commercial centers, that are sized to be consistent with rural character, rather than narrow strip development in order to protect the county's quality environment, provide efficient land use, and improve traffic safety and travel.

OBJECTIVEE:Tourism.Land use activities and planning programs should be supported that will promote tourism as an activity for generating expanded employment and revenue in Thurston County.

POLICIES:

1. The county should encourage cultural and social activities, emphasizing natural attractions, historic places, agritourism and activities unique to our area..

2. The county should provide and publicize public access to waterbodies that are tourist attractions, provided public access is consistent with environmental needs.

3. The county should designate scenic drives and special setback and clearing regulations implemented for them.

4. The county should support signage, maps, and other means of identifying areas and features of interest.

5. The county should support the development of facilities that enable tourist activities to take place, such as convention centers (within urban growth areas), bed and breakfast facilities,

Commented [IL35]: Delete per PC Meeting Public Input

Commented [IL36]: Leave as bullets or change to a/b/c?

Commented [IL37]: Source: Ian Maybe redundant but I want to make sure that Agritourism is visible.

Commented [IL38]: Clarified per PC Commissioner input

Commented [IL39]: Source: Ian Added agritourism.

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private and public parks, campgrounds, recreational areas, overnight facilities and facilities associated with local economic activities that would attract tourists. In the rural area, small-scale tourist activities should be in keeping with rural character.

6. The county should review land use regulations for their impact on private or public development of tourist facilities.

7. The county should support a public/private effort to identify strategies and programs that will promote tourism in Thurston County including support of a public/private effort to investigate the viability of expanding existing county tourism facilities. The County should also support a public/private approach, coordinated with state tourism resources, to identify cultural, social, natural, and historical sites and activities to promote as part of county tourism efforts.

8. The county should continue to support the Bountiful Byway and periodically review development standards to ensure farmers and other rural resource land owners are able to operate appropriate commercial activities (e.g. farm stands, wine and spirit boutiques, etc.)

89. Support a public/private approach, coordinated with state tourism resources, to identify cultural, social, natural, and historical sites and activities to promote as part of county tourism efforts. The county should encourage others to develop a map/brochure that illustrates tourist-oriented sites, facilities, and activities such as:

• Public access to waterbodies

• Scenic drives and vistas or view points

• Historic points of interest

• Festivals and annual special events

• Camping facilities

• Parks and trails

• Recreation sites and facilities

• Other points of interest

• State government points of interest

• Tour packages

• Museums

• Historic sites

910. The county should designate scenic drives and implement special setback and protective clearing regulations for them. The county should also investigate techniques and/or incentives that might be used to compensate property owners for these restrictions.

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OBJECTIVEF:DevelopmentStandards.Development Sstandards for industrial and commercial areas and activities should be provided to promote optimal working environments, worker health and safety, and compatibility with adjoining areas while ensuring sustainable and environmentally sound developments.

POLICIES:

1. The county should provide standards that should generally be performance-oriented and should address buffers, traffic access, noise, screening, landscaping, and signs.

2. The county should encourage screening with mature plantings, fences, and buffers should isolate such uses as junkyards.

3. The county should encourage commercial activities involving trucking within sites that are adequate for loading, unloading, and maneuvering trucks.

4. The county should periodically review and update Zoning Ordinance standards for industrial and commercial areas to be consistent with Comprehensive Plan policies.

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CHAPTER 8 ECONOMIC DEVELOPMENT - Thurston County · 2019. 6. 6. · Economic Development THURSTON...

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