Tag: Business

Mayor Ed Murray Releases Commercial Affordability Plan

Today, Mayor Ed Murray’s Commercial Affordability Advisory Committee released recommendations to help ensure Seattle remains an affordable and equitable place for small businesses. The Committee, which was made up of small business owners, developers, and members of the arts and music communities, developed recommendations that build upon Mayor Ed Murray’s continued focus on affordability in Seattle, including increasing the minimum wage to $15.00 per hour and addressing housing affordability and livability through HALA.

“Affordability is vital to Seattle’s future. Whether it is ensuring people can make a living wage, afford to live where they work or start a business, we must address affordability from every direction,” Mayor Ed Murray said. “Seattle’s small businesses are what make Seattle a city we love to work and live in. As the city grows, we must maintain the uniqueness and high quality of life made possible by small businesses today.”

“I want to thank the Commercial Affordability Advisory Committee for their work and their recommendations,” Brian Surratt, Director of the Mayor’s Office of Economic Development, said. “The recommendations will be instrumental as we work to fulfill Mayor Ed Murray’s goal for an affordable Seattle.”

The committee’s recommendations were the culmination of collaboration between small businesses and developers.

“The interests of small business owners and developers really are aligned,” committee member and local developer Liz Dunn said. “Developers who think strategically about the neighborhoods they are working in, understand that creating space which is attractive and affordable for small businesses is an essential ingredient for good development and for creating long term value for residents and property owners.  Building spaces that feel like they belong in a neighborhood, and add character to it, create a pedestrian-friendly experience and a true sense of place.”

“Pioneer Square is a neighborhood that demonstrates how growth and small businesses can thrive together while preserving the arts and the historical legacy of the neighborhood all while paving the way for the future,” Karen True, Director of Business Development for the Pioneer Square Alliance, said. “The balance between new development in Pioneer Square and the interests of small business was a model as we developed our recommendations. I’m pleased the committee recommendations include tools for small business owners as well as property owners and developers.”

“As an immigrant and a small business owner, it is important to me that Seattle remains a place where anyone can start a business who has a good idea,” Solomon Dubie, owner of Café Avole, said. “The Commercial Affordability Advisory Committee worked hard to recommend ideas that will keep Seattle affordable for small businesses.”

The Committee made a variety of short- and long-term recommendations. Highlights included:

  • Explore a new entity focused on commercial affordability. This entity would provide support services for small businesses and small-scale building owners, including technical assistance, help navigating real estate issues and City processes, support from non-public funding resources, activation of public agency-owned property, and coordinated advocacy.
  • Institute new financial incentives. Advocate for legislative changes that would make it advantageous (via property tax exemptions and property tax assessments tied to building income) for property owners to support local small businesses. Stimulate a non-City fund that would provide alternative financing options for both small businesses and small property owners.
  • Make changes to public policy. Specifically, focus on the sale/lease of public property; affordable commercial space within mixed-use housing developments, public spaces or transit oriented properties; zoning that encourages small-scale commercial pockets in residential areas; and policies that promote a healthy mix of local, small businesses and chain/big box retail tenancy.
  • Improve the permitting process. Reduce permitting requirements for qualifying “light-impact” small business projects, strengthen design guidelines that favor small business and retail spaces, and enable greater neighborhood input on tenant selection.
  • Expand technical assistance programs. Increase or supplement the Office of Economic Development’s existing small business resources to include a third-party commercial affordability consulting team, coordinated and diversified outreach (more languages and formats), and an online “Marketplace Exchange” for the small business and property owner community.

Additional recommendations can be found in the full report: www.seattle.gov/CommercialAffordability.

Mayor Ed Murray directed his Office of Economic Development to work with small businesses, business districts, developers and other stakeholders to explore the implementation of the Commercial Affordability Advisory Committee’s recommendations.

In the short term, the mayor immediately committed to taking action. For example:

  • King Street Station Activation
    The City will transform the second floor and plaza space of King Street Station into affordable food and retail space that will serve as an attractive gathering place for neighboring residents, workers, and travelers. Funding: $360,000 in federal Community Development Block Grant (CDBG) funds for the renovation of tenant spaces, plus possible matching funds from other sources (e.g. federal grants, foundations).

 

  • Commercial Affordability Consulting Team 
    The City will create a commercial affordability consulting team to assist small businesses and small-scale property owners with a broad range of real estate and business expertise (e.g. design of tenant spaces, feasibility analysis in renovating buildings, business plan development). Funding: at least $65,000 annually in CDBG funds.

 

  • Financial Support for Microbusinesses

    The City will assist low- and moderate-income owned microbusinesses (i.e., five or fewer employees) to overcome a critical obstacle to growth: low-cost capital. The City will partner with a nonprofit lender to provide Individual Development Accounts (IDAs) and 0% interest loans. Funding: $122,000 annually in CDBG funds for the IDA and 0% interest loan products.

 

To read the full response from the mayor including all of his action items, visit www.seattle.gov/CommercialAffordability.

The committee and the Office of Economic Development identified several pressures facing small businesses as Seattle grows. For example:

  • Space is becoming more expensive: In Seattle, asking retail rents are 7 percent higher than before the recession and 28 percent higher than their post-recession low in 2012.

 

  • Space is harder to find: Seattle’s retail vacancy rate in the third quarter of 2016 was 1.9 percent, down from a prerecession vacancy rate of 4.1 percent. Industrial vacancy decreased from 3.6 percent to 1.5 percent in the same time period. Decreased availability of commercial space across the city creates challenges for small businesses.  They are not able to find space that is suitable for small business use, and what little space that is available has experienced dramatic rent increases as a result of limited selection.

 

  • Available space is getting larger: Many small businesses need small spaces, but the size of leased retail spaces is increasing. This compounds the affordability challenge for many business owners who may not be able to find appropriately sized spaces. Among existing buildings, 25 percent have available spaces under 1,000 square feet. Of the buildings that will come online in the future (those listed as proposed, under construction, or under renovation) the count falls to 20 percent. With only 1 in 5 planned buildings renting spaces under 1,000 square feet it may become harder for small businesses to find smaller spaces.

 

  • Small businesses are having difficulty obtaining access to lending capital: When ranked in order of dollars lent per capita, the top 10 census tracts received $7,228 per capita in small business loans from 2010 to 2014, more than 30 times more than the bottom 10 tracts, which received $230 per capita in small business loans in the same time period. These bottom ten census tracts are located in neighborhoods of the city including Rainier Beach, Beacon Hill, Delridge, and Lake City, all areas with concentrations of low-income, minority and immigrant-owned businesses and households, highlighting the need to expand technical assistance programs and outreach to underserved communities.

 

Additional data is featured throughout the report.

The post Mayor Ed Murray Releases Commercial Affordability Plan appeared first on Mayor Murray.

Mayor returns from trade mission to China and Japan

Mayor Ed Murray participated in a trade and cultural mission to China and Japan this month. The mission was part of an ongoing effort to encourage more foreign direct investment in Seattle, expand economic opportunities for local companies, and establish international partnerships. Murray joined the Seattle Metropolitan Chamber of Commerce, the Washington State China Relations Council, the Trade Development Alliance of Greater Seattle, the Port of Seattle, the University of Washington, and other local business on this trade mission to promote Seattle as a global hub for trade and innovation.

Seattle has deep cultural connections to China and Japan, and is home to thriving Chinese and Japanese communities. This trade and cultural mission reaffirms Seattle’s commitment to expanding economic opportunity and continuing cultural and educational exchanges between our countries.

Highlights from China:

  • Seattle and the City of Hangzhou signed a Memorandum of Understanding (MOU) to support the promotion of technology and innovation, e-commerce, trade, economic development and life sciences. At this ceremony, Amazon China also signed an MOU with Hangzhou that will promote new opportunities for Seattle-based e-commerce companies in China.
  • Mayor Murray announced the signing of an MOU to support biomedical research and the establishment of a joint institute between the University of Washington School of Medicine and Shenzhen-based BGI, one of the world’s largest genomics organizations.
  • Mayor Murray joined Xiamen Airlines in announcing new non-stop service from Shenzhen to Seattle starting in September 2016. This new service is the result of work by the City and Port of Seattle to increase travel between the two economic hubs.
  • China’s largest residential property developer, China Vanke, announced that it will invest in a residential tower in Seattle’s downtown. This is the company’s first investment in Washington state.

Highlights from Japan

  • Mayor Murray spoke to more than 200 Japanese business leaders to promote investment and trade in Seattle at an event hosted by U.S. Ambassador to Japan Caroline Kennedy.
  • Mayor Murray committed to stronger business partnerships with Keidanren, Japan’s largest and most influential economic organization, and the Japan Association of Travel Agents.
  • Mayor Murray joined Starbucks Japan CEO Jun Sekine and Kobe Mayor Kizo Hisamoto to announce the opening of a flagship Starbucks store in Kobe’s Meriken Park. The new flagship store commemorates the 60th anniversary of the Kobe-Seattle Sister City relationship and the 50th anniversary of the Kobe-Seattle Sister Port relationship.
  • Mayor Murray visited Kobe’s Disaster Reduction and Human Renovation Institution to discuss emergency preparedness and earthquake-grade building codes.
  • Mayor Murray and the First Gentleman met with Ms. Kanako Otsuji, Japan’s first and only openly gay member of the House of Councilors of the National Diet, and Shibuya Mayor Ken Hasebe, who led the passage of “partnership certificates” as a means to recognize same-sex marriage, to discuss LGBTQ rights and issues.

Photos from Mayor Murray’s trip available here.

Mayor Murray announces agreement with Shenzhen to advance biomedical research

Mayor Ed Murray announced the signing of a Memorandum of Understanding (MOU) between Seattle and the City of Shenzhen, China, to support biomedical research and the establishment of a joint institute between the University of Washington School of Medicine and Shenzhen-based BGI, one of the world’s largest genomics organizations.

The Memorandum of Understanding (MOU) commits both cities to greater cooperation on issues of medical research and health care. UW and BGI signed a separate MOU in Shenzhen agreeing to collaborate on development of the joint institute.

“This agreement between the Cities of Seattle and Shenzhen will encourage and support meaningful cooperation between two global leaders of innovation in medical research and technology,” Murray said. “Ultimately, it will create new opportunities for our biotech and health care industries, and help advance pioneering medical technology that will benefit patients, doctors and communities around the globe.”

“We at the UW are looking forward to working alongside BGI in charting the future of genomics research, especially in accelerating the application of new sequencing technologies to human health,” said Dr. Jay Shendure, an M.D./Ph.D scientist and professor of genome sciences at the UW, and a national advisor on precision medicine initiatives.

The joint institute is part of BGI’s goal of developing an innovation center in Seattle. The City of Seattle looks forward to working with BGI on the process to develop this significant addition to the city’s innovation economy.

Shenzhen, a coastal city of over 10 million people, is considered the high-tech and life sciences hub of China. “With a sound foundation in the fields of biotech and health technology, a host of well-positioned industries have taken shape in Shenzhen, including gene medicine, polypeptide medicine, anti-tumor medicine, medical imaging equipment and life information monitoring,” according to the MOU.

The MOU was signed during the third day of a Murray-led trade delegation to three cities in China, which includes Hong Kong and Hangzhou. The mission is part of an ongoing effort to encourage more foreign direct investment in Seattle, expand economic opportunities for local companies, and establish international partnerships.

“We are thrilled to be part of this historic moment between Seattle and Shenzhen,” said Kristi Heim, president of the Washington State China Relations Council. “Deepening the partnerships between our two cities will support economic growth, scientific advancement and long-term collaboration in public health and environmental protection.”

The agreement builds on two earlier MOUs signed in 2015 between Seattle and Shenzhen pledging cooperation issues such as low carbon urban development, electric vehicles, information technology, life sciences, and people-to-people exchanges. Murray also hosted visits by Shenzhen Mayor Xu Qin and former Deputy Mayor Tang Jie.

The trade delegation includes: Murray, the Seattle Metropolitan Chamber of Commerce, representatives from the Washington State China Relations Council, the Trade Development Alliance of Greater Seattle, Alaska Airlines, Amazon, Boeing, Microsoft, Vulcan, and the University of Washington.  They met with government officials and business representatives in Hong Kong and Shenzhen before Murray is joining a separate group of e-commerce companies on a trip organized by the Washington State China Relations Council to the City of Hangzhou.

For most of its history, Seattle has had deep cultural connections to China. Throughout the trip, Murray will seek to deepen those ties as he meets with local officials and business representatives.

Murray to promote trade in China and Japan

Mayor Ed Murray will join Seattle business executives, economic development officials, and academic leaders on a 5-day trade delegation to China this month. He will then visit Japan for three days to strengthen strategic business and cultural ties. The mission is part of an ongoing effort to encourage more foreign direct investment in Seattle, expand economic opportunities for local companies, and establish international partnerships.

“Seattle is a global hub of trade and innovation, but our continued success will depend on creating and expanding business relationships with companies and investors in Asia and elsewhere,” Murray said. “Through stronger partnerships with our international peer cities, we can help each foster new advancements in technology and sustainability and create new opportunities for growth.”

Murray will join the Seattle Metropolitan Chamber of Commerce and representatives from the Washington State China Relations Council, the Trade Development Alliance of Greater Seattle, Alaska Airlines, Amazon, Boeing, Costco, Microsoft, Vulcan, and the University of Washington, and others, on visits to Hong Kong and Shenzhen before leading a separate group of e-commerce companies to the City of Hangzhou.

“We’re pleased to have Mayor Murray join the Chamber in leading the delegation, as his participation uniquely opens doors for everyone on the trip,” said Maud Daudon, president and CEO of the Seattle Metropolitan Chamber of Commerce.  “Our visit has attracted the attention of several significant Chinese companies, creating remarkable business development opportunities for local businesses in a variety of industries, from life sciences to real estate to tourism. We look forward to fostering stronger, deeper relationships with our Chinese counterparts to better our region’s economy, and are hopeful that we will be reporting on tangible new business connections between Seattle and China.”

The delegation will meet with the U.S. Consulate General in Hong Kong, followed by meetings with local government and trade officials. The delegation then will travel to Shenzhen and Hangzhou. Shenzhen is coastal city of over 10 million people and is considered the high-tech hub and electronic manufacturing center of China. Hangzhou is home to seven million people and world headquarters of e-commerce company Alibaba.

In Japan, Murray will promote business development in the biomedical and manufacturing sectors with local leaders, and promote exchanges on LBGTQ rights and environmental stewardship. His first stop will be in Kobe, Seattle’s Sister City since 1957, followed by a visit to Tokyo.

For most of its history, Seattle has had deep cultural connections to China and Japan, with sizeable immigrant populations from the two nations and continuing cultural and educational exchanges. Throughout the trip, Murray will seek to deepen those ties as he meets with local officials and arts and cultural leaders in both nations.

There is no cost to the City for the mayor’s travel.

Highlights of the trip include:

  • May 9 — Hong Kong, China
    • Presentation of Hong Kong Sustainability Program with Under Secretary for Environment Christine Loh. Murray will share his Equity and the Environment Initiative and present Seattle’s vision for sustainable development.
  • May 10-12 — Shenzhen, China
    • Tour BGI (Beijing Genomics Institute) and meet with Dr. Wang Jian, BGI president and founder, and former research fellow at the University of Washington, and discuss new partnerships in biotech and health care technology.
    • Seattle Day Forum, with Mayor speaking with business, trade and government officials about new or expanding relationships with Seattle firms.
    • Visit leaders of Shenzhen’s electrified transportation system in support of the Mayor’s Drive Clean Seattle initiative.
  • May 13 — Hangzhou, China
    • Tour of Alibaba campus, networking and relationship building with leading Seattle e-commerce companies, including Amazon, Blue Nile and Costco.
    • Seattle Day Forum, meetings with investors interested in establishing relationships with Seattle companies.
  • May 15-16 — Kobe, Japan (Seattle’s Sister city)
    • Visit with Kobe Mayor Kizo Hisamoto and the Kobe-Seattle Sister City Association, which will commemorate its 60th anniversary in 2017.
    • Meetings with Kobe Chamber of Commerce and Industry to promote strategic business opportunities and visit to a ShinMaywa factory that produces parts for Boeing.
    • Visits with officials to exchange best practices on emergency management. Kobe experienced a major earthquake in 1995.
    • Matsuri Festival, where Murray will be the guest of honor in Kobe’s largest parade with more than 500,000 spectators.
  • May 17 — Tokyo, Japan
    • Meetings with Keidanren, the Japanese Business Federation; and the Japan Association of Travel Agents, representing all major tour operators in Japan, to deepen economic ties between Japan and Seattle.
    • Visit with Ken Hasebe, Mayor of Shibuya, the first ward of Japan to officially recognize same-sex marriage.
    • Reception hosted by U.S. Embassy Tokyo to promote digital economy collaboration between Japan and Seattle.

U.S. Supreme Court will not review Seattle minimum wage law

Today the United States Supreme Court announced that it would not accept review of the unanimous decision of the Ninth Circuit Court of Appeals refusing to halt full implementation of Seattle’s $15 an hour minimum wage law.

“Today’s decision by the Supreme Court reaffirms that Seattle workers’ hard-fought raises in hourly pay will remain in effect,” said Mayor Ed Murray. “This is a great day for workers in Seattle as we look to continue to fully implement our $15 minimum wage for our largest employers by 2017 and 2021 for our smallest businesses. Our phased-in approach to raising wages, developed by labor and business working together, minimizes disruptions—especially to our small businesses which are the backbone of Seattle’s vibrant economy. I am proud that Seattle’s ground-breaking approach to addressing income inequality will continue to move forward.”

“I am pleased that the U.S. Supreme Court let the Ninth Circuit’s ruling stand and that we have prevailed at every stage of this lawsuit,” said City Attorney Pete Holmes.

The Ninth Circuit had affirmed an earlier ruling by U.S. District Court Judge Richard A. Jones, denying the International Franchise Association’s motion for a preliminary injunction.

The effect of today’s decision by the Supreme Court is that Seattle’s minimum wage law can continue to be fully implemented as scheduled.

Workplace poster (English)

Workplace poster (Spanish)