BURIEN BUSINESS and ECONOMIC DEVELOPMENT PARTNERSHIP
(BEDP)
MEETING MINUTES
Date: June 24, 2005
Time: 7:00 – 8:30 AM
Members Present: Dean Parkins, Kevin Fitz, Doug Moreland, Ryan Warnes, Debra George, Jim Hughes, Nancy Damon, Bob Ewing, Rick Cosgrave, Harvey Aulgur, David Elliott, Mark Minium
Absentees:
Excused Absentees: Tom Gehl, Barbara Blackshear-Haley
Staff: David Cline, Assistant City Manager; Dick Loman, Economic Development Manager; and Joline Wright, Economic Development Assistant
Guests: Diane Summerhays and Tina Bush, Port of Seattle; Gayle Collins, Page 2 Books; and John Schwartz, Keller CMS
Minutes: Dean Parkins moved and Doug Moreland seconded to accept the minutes with corrections: on page 2 the word possibility changed to possibly; lose of jobs changed to loss of jobs; and on page 3 the word on should be deleted.
Chair’s Report: Bob Ewing
Bob reported that the Partnership would continue to meet in the Council Chambers.
Barbara Blackshear-Haley contacted Bob and told him that she was unable to attend this meeting; this was to be Barbara’s last meeting due to her resignation. Will be working on having someone from the school district apply for this position.
At the next meeting Bob would like to go through the work program and see if some of the priorities need to be adjusted or changed.
City Manager’s Report: David Cline, Assistant City Manager
David distributed an article entitled “Best Neighborhoods” listing Burien as number 10 out of 84 top Seattle area neighborhoods. These neighborhoods were ranked by home price and resale value, diversity, nearby amenities, schools, commute time and crime rate.
The city is moving forward on Town Square; the City Council took action and approved the Town Square agreements. There are still four issues that the Partnership will be involved in:
· Retail marketing study – not sure how BEDP will interact. John Schwartz, Keller CMS will be working on this.
· Parcel I Planning – Partnership recommendations
· King County Housing participation in Town Square
· Retail/housing on Parcels 4,5,6
Burien’s urban center designation has been approved by Puget Sound Regional Council (PSRC); this means we can go out for additional funding and improves our position with Sound Transit. The proposed sound transit language, “Regionally-designated urban centers not served on this prioritized system should be supported with transit facilities that will increase the centers’ readiness for future Sound Transit service and system connectivity.”
Due to the water line breaks and structural concerns, programs now held at the Senior Center are moving. The lunch program will be at the North SeaTac Park Community Center, 13735 24th Ave. S., SeaTac until July 5 then moving to the Glendale Lutheran Church. The senior programs will continue at the Senior Center until August 5 and then will move to the Burien Community Center, 425 SW 144th St. The facility plan is for the city to purchase the current library site and remodel to meet the needs of the Senior Center.
Bob Ewing asked David how BEDP and Urban Partners will work together. David suggested a subcommittee be appointed by the Chair.
Economic Development Strategy Discussion – Tom
Sroufe, Executive VP, Wesbild
Shopping Centers
Dick Loman introduced Tom Sroufe from Wesbild Shopping Centers, a Canadian company based out of Vancouver, Canada. Wesbild responded to the city’s Request for Qualifications (RFQ) for Town Square, but Wesbild is a retail developer and rebuilding existing centers is their expertise so they did not pursue the RFQ. Instead they recently purchased the Redwood Center across the street from City Hall.
Tom began his presentation by explaining the reasons QFC closed its store in Redwood Center. Tom distributed a Competitive Analysis Market Study done by Retail Resources Group (see attached). Most grocery outlets try to achieve $8.00 per sq. ft. in sales; QFC was far below at $3.00. QFC felt this was because of Burien’s “blue collar” demographics, but Tom pointed out to them that our demographics are about the same as West Seattle’s. A study of the average sales per square foot of competitors around the area follows:
Albertsons per $6.00 sq ft
Safeway $7.00 per sq ft
Thriftway $9.00 per sq ft
Trader Joe’s $20.00 per sq ft
QFC $3.00 per sq ft
Tom also distributed a study of QFC cities by ascending Median HH Income (see attached). Saars Marketplace, which is based out of Oak Harbor, will be moving into the space left by QFC. They are a local operation with 10 stores and Tom feels they will fit in Burien’s customer niche.
Tom reported the redevelopment of Redwood will involve major changes. They will stay within the general footprint, but will be taking down the two-story building along 148th. Redevelopment will start approximately in 2006 and the Saars Marketplace will be the anchor because of the square footage. Gayle Collins mentioned the fact that Burien has a lot of local business with strong tradition and retailing is a tough business. Westbild mixed local businesses, such as restaurants, with chain stores to get a balance at the Westwood Mall. Bob Ewing asked if Burger King would move? Tom said yes, to another location in the Redwood Center to open up the opportunity of more retail along 4th. Doug Moreland asked if it was feasible for a Whole Foods or a Metropolitan Market to move into Burien. Tom advised as long as a Saars store is coming in, not in Redwood, but the demographics for Burien are there for these types of stores. Tom gave the members a Demographic Comparison – 3 Mile Ring (see attached)
“Small Business” Issues – Bob Ewing
At a previous meeting Gayle Collins, Page 2 Books, suggested that small businesses be addressed. Bob asked Jim Hughes, Sal’s Deli, who has had a local business for a number of years, address the retail goals for the small businesses. Jim explained that he has been in business for 35 years. He has been successful because of loyal customers and Burien’s stable households. Town Square is scary for a small business because there will be businesses with more money and more experience. Small businesses need to change and come up with some new ideas and start building for the next generation. The unfortunate thing with larger companies coming in the area is that small local businesses sometime are forced out.
Harvey Aulgur says change comes slowly. So many small businesses make it because of cheap rent. Every small business should try to buy the building they are in. As the rents go up we will eventually drive small businesses out.
Debra George reported there are two retail spaces for rent under 2,000 sq per unit and are renting for $500 a month. Owners are realizing the demand for space and bringing the rent up.
Gayle Collins – Lot of the small businesses don’t know how to run a business. Small businesses have a critical part to play in the overall plan and business owners need to learn how to run their businesses.
Tom Sroufe – The unique thing about retail is a retailer can afford to pay rent to landlord for their direct sales. The landlord has to promote something that gets the rent paid – it’s a two-way street. If rents are going up, sales need to go up, or both lose.
Jim Hughes – Southcenter caused a dramatic change; now going through a change again.
Harvey Aulgur – Counsel small businesses through SCORE. There are some exciting people coming in the market who are young and have some great ideas.
Dean Parkins – Very disappointed that a city councilmember did not attend the meeting. Think these presentations are very important.
Bob Ewing - Roll of the independent business is getting the right fit. Reflect on what we are learning from the presentations we have had at the last few meetings.
Discover Burien Report – Debra George
· Safeway, in the Burien Plaza, will have their ribbon cutting at 4:30 p.m. today. They just recently remodeled.
· The Strawberry Festival and Father’s Day Car Show was a big success.
· The Annual Audi Car Show is on June 25 from 5-10 p.m.
· The 4th of July – Family Days Celebration is July 4 from 8 a.m. to 8 p.m.
Future Agendas –Partnership
July 22 – BEDP meeting – 7:00 AM Council Chambers
August 12 – BEDP meeting – 7:00 AM Council Chambers
Round the Table:
John Schwartz – Challenges of rent linking to sales; cost to construct space. SCORE will be a great resource.
Doug Moreland – Positive things in the last ten years are turning negative energy around. Discover Burien is a prime example. The participation in the events like the car show and the Strawberry Festival is positive energy in the community, hope it continues.
David Elliott – Always hoped the community would prosper. Was on the community to help select the Town Square developer and looking forward to the next five years, and a successful project with a mix of quality tenants and small independents.
Kevin Fitz – A lot has to do with the function of the market place. We are in a very transitional stage right now. Bringing more positive outside investments in the market as we change.
Ryan Warnes – It’s tough to do business in Burien. If you look at counterparts in other cities Burien is not fairing as well. As we talk the more people, housing and businesses we can bring in is important. Businesses that are not successful can’t buy my product. Need to figure out how we keep our money in Burien.
Debra George – Businesses are starting to figure out the demographics; people are starting to come to Burien. People are starting to realize what we have in Burien.
Jim Hughes – Changes are good. How the City Council voted to have this all come together is amazing.
Rick Cosgrave – Excited about what is happening here. People will be asking where Burien is.
Bob Ewing – Partnership can play a role. The discussions and presentations we have been having are important and we need to take advantage of these.
Nancy Damon – The governor will be in the Independence Day parade.
Adjourned: 8:30 am.
Next Meeting: July 8, 2005, 7:00 a.m.