02/12/2018 - Minutes
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City of Port Orchard
Economic Development and Tourism Committee
Meeting Minutes
Monday, February 12, 2018
Committee Members Present: Council Members Bek Ashby (Chair), Scott Diener, Jay Rosapepe
City Officials and Staff: Mayor Rob Putaansuu, City Clerk Brandy Rinearson, Community Development Director Nick
Bond, Long Range Planner Keri Sallee
Guests: Kathleen Wilson
The meeting was called to order by Chair Ashby at 9:02 a.m.
1. Selection of Committee Chair. Council Member Rosapepe requested that Council Member Ashby remain the
committee chair. Council Member Diener seconded the request. Ashby accepted, and will continue to serve
as chair of the committee in 2018.
2. Confirm 2018 Meeting Schedule and Location. The committee agreed to meet on the second Monday of each
month at 9:30 am in the Council Chambers.
3. Review: City Controls for Economic Development. Community Development Director Bond discussed several
of the City’s programs and regulations for promotion of economic development, including zoning, tax
incentives, and pilot programs. In 2016, the City Council adopted the multi‐family tax abatement program,
which is a state program that allows developers who provide multifamily housing in certain areas to defer
taxation on the improvements for either 8 or 12 years, depending on whether affordable housing is a
component of the new development. One developer is currently building 38 units under this program.
Ashby said that the City’s pilot program for mixed‐use development with alternative zoning standards, which
was adopted by Council in 2017, will become effective concurrent with the adoption of multifamily and
nonresidential design standards. This program is intended to encourage mixed‐use infill development with
innovative design and pedestrian/transit amenities. Bond said that the design standards should be presented
to Council for adoption in early March. The City’s 640 Bay Street property is proposed to be developed under
this program.
Ashby provided handouts from workshops she recently attended regarding economic development. The City
of Richfield, near Vancouver, WA is working on a development model similar to Port Orchard, with a vision,
community design standards, subarea planning, city/private partnerships, and other incentives. The City of
Kennewick recently bonded for and installed utilities, roads and other infrastructure for a large area of city‐
owned property, including a defunct airport, and then solicited businesses to relocate and build their offices in
this area. A portion of the sales tax revenue from these businesses will pay down the city’s bond debt.
4. Review: Lodging Tax Advisory Committee. City Clerk Rinearson gave an overview of the City’s lodging tax
advisory committee (LTAC) and how it operates, and how lodging tax revenues are collected and awarded to
eligible applicants.
5. Review: 2017 Tourism Promotion Strategic Plan. Ashby went through the Tourism Promotion Strategic Plan,
which was adopted by Council in 2017 after nearly a year of development in partnership with the Chamber of
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Commerce, POBSA, and other local organizations. Ashby suggested that the committee may want to revisit the
plan in 2018, and make any necessary updates before LTAC funds are allocated again. She also praised the
Visit Kitsap website for the quality and amount of information they have made available to visitors.
6. Review: Summer Foot Ferry Schedule. Rinearson said that the City of Port Orchard, the City of Bremerton
and the Port of Bremerton recently met to draft the summer 2018 foot ferry schedule and the financial
contributions that would be required from Bremerton and Port Orchard.
The schedule includes several May and June dates associated with downtown events, the Fourth of July,
Sunday service throughout July and August, and Labor Day. Kitsap Transit has been asked to provide additional
transit service to support the ferry for the Fourth of July and Labor Day. Labor Day is generally the largest
ridership/revenue day of the year. Estimated 2018 revenue from ridership indicates that the propose summer
schedule will be about 90% ridership funded, so that only about 10% of the necessary funding will need to be
obtained elsewhere. Port Orchard contributes its share of ferry costs from LTAC funds, and Bremerton’s share
comes from their general fund. The City contracts with Kitsap Harbor Tours (KHT) to provide the foot ferry
service. KHT doesn’t accept the ORCA card, so all transactions have to be in cash, although KHT’s policy is that
no one without cash is turned away.
7. Discussion: 2018 Committee Goals and Work Plan. Council Member Rosapepe suggested that the committee
work on getting more people from the community involved with the City’s economic development efforts.
Ashby said that since Rosapepe is on the Utilities committee and Diener is on the Land Use committee, she
hopes there will be additional sharing of knowledge between committees on issues of common interest. She
also hopes to continue and expand discussion sessions with the business associations, and with other business
people who have knowledge and suggestions to share. Bond said that the Council’s annual retreat in May
would be a good opportunity to strategize and prioritize committee work items, with input from the entire
Council. He would also like to explore the possibilities of how the City’s industrial park property could be used
to bring in revenue. Other issues include the current limitations of the City’s infrastructure to support the
demands of additional growth, and the backlog of Public Works projects, which could hamper future economic
development efforts. Ashby said that the City also has an opportunity to benefit from providing housing, goods
and services to workers in economic centers that are being developed outside the city limits, such as the Port’s
industrial park.
Next Meeting: The next meeting will be on March 12, 2018, at 9:30 am in the Council Chambers.