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09/14/2020 - Minutes 1 City of Port Orchard Economic Development and Tourism Committee Meeting Minutes Monday, September 14, 2020 Committee Members Present: Councilmembers Bek Ashby, Fred Chang, Shawn Cucciardi (Chair) City Officials and Staff: Mayor Rob Putaansuu, City Clerk Brandy Rinearson, Community Development Director Nick Bond, Long Range Planner Keri Sallee Guests: Lorie Limson Cook, Gary Anderson Chair Cucciardi called the meeting to order at 9:30 am. 1. Business Community Discussion. Mayor Putaansuu said that Phase I CARES Act rent relief grants have been released to a dozen small businesses that have been impacted by COVID-19, and approximately the same number will receive grants under Phase II, totaling nearly $100,000. Applications for Phase III will be taken in the next week. The City is also working with the school district’s business manager on a grant for wi-fi hotspots for low- income students to assist in remote learning during the pandemic and beyond. Councilmember Ashby requested that the Council also consider providing CARES rent relief grants to daycare centers; Putaansuu confirmed that they qualify to apply. 2. Update: South Kitsap Community Events Center. Lorie Limson Cook with Rice Fergus Miller Architects (RFM) said that RFM has been working on the South Kitsap Community Events Center (SKCEC) project since July 2020. Their primary focus right now is to narrow down potential sites based on three alternatives by mid-December 2020, with City Council selection of the final choice in January 2021 (Phase 1A). Phase 1B will then follow with development of conceptual building and site designs. At present, sites being considered include the Kitsap Bank property, a property next to Kitsap Bank (Marina Property), the former Myhre’s site, the library site, and the Kitsap Bank parking lot/640 Bay St. Possibilities include combining the Kitsap Bank and Marina Property, and the library and Myhre’s properties. RFM will continue to explore infrastructure needs for each of these sites, and has developed a draft public participation plan and timeline. The first outreach effort will be an online public survey in September-October. A public information website will also be hosted. The first preliminary conceptual plans should be available for Council review in mid-November. Chair Cucciardi asked that RFM keep the Council informed on issues related to parking availability and demand for the various sites, including use agreements and leases. Cook said that the public outreach for the survey will include the assessor’s mailing list for property owners as well as City email lists, interest group mailing lists, etc. 3. Discussion: The Future of Retail and What We Have Learned from Covid-19. Gary Anderson, Port of Bremerton Commissioner, said that he doesn’t see any signs of increased commercial demand except for possibly fast food. Expansion of residential growth is what drives expansion of commercial growth. Putaansuu said that while the City can tell how much sales tax it receives from each business, it doesn’t currently receive a breakdown of what percentage is online sales vs. in person sales. Bond said that with the increasing trend of online ordering, residential development is now becoming a sales tax generator in its own right. Anderson said that there probably isn’t sufficient retail in South Kitsap to serve projected residential growth. Putaansuu emphasized the importance of shopping locally. Cucciardi agreed, and pointed to walkable communities, such as envisioned in the recent Ruby Creek subarea plan neighborhood, as an essential part of encouraging local shopping. He also sees more covered outdoor spaces, such as heated patios, as future desirable amenities. Bond said that the McCormick Communities developers are interested in building a “woonerf”-type urban village shopping corridor in the McCormick commercial area. This concept might also work in a couple of the City’s downtown areas. 2 Additional Discussion: Bond provided an update of development activity in the City. The Sedgwick multifamily building permits have been issued, and the Rush multifamily building permits have been applied for. The City has received an annexation query about several properties on South Bethel Avenue. DCD and Finance are analyzing the cost/benefit issues of this proposal, but preliminary analysis indicates that it would be financially preferable to annex a larger area of the South Bethel corridor, to bring in sales tax from commercial businesses at the south end of the corridor. The applicant will be informed that the City would prefer a larger annexation area, and will be asked to determine whether other nearby property owners would be willing to join an annexation petition. Ives Mill Road might be a logical southern boundary. An annexation in this area could also affect the County’s proposals to approve an RV/tiny home park and a storage unit project nearby. Anderson said that if the City doesn’t indicate an interest in annexing the South Bethel area, the County may try to remove this area from the UGA during the next Comprehensive Plan updates. There doesn’t seem to be enough interest from property owners along Bethel to extend sewer using a ULID, but they might be open to an annexation that would allow future sewer development and connection on an individual basis. Assigning development-compatible zoning when annexing properties along Bethel would be helpful. Chair Cucciardi adjourned the meeting at 10:55 am. Next Meeting: October 12, 2020 at 9:30 am, via Zoom teleconference.