chapter 8 economic development - thurston county

PlanningBoard of County Commissioners RecommendationHearing Draft

AugustOctober 2019

January 2019 Public Draft

8-1

CHAPTER 8

ECONOMIC DEVELOPMENT

I. INTRODUCTION

Growth Management Act: 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 the

capacities of the state's natural resources, public services, and public facilities."

County-Wide Planning Policies: 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 those

jobs;

• 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

January AprilAugustOctober 2019 PBoCC PublicRecommendationHearing Draft

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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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2004 Update: 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.

2018 Update: 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

Planning Context

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.

Commented [IL4]: Good list of challenges... add list of strengths up front as well

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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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“Balancing Land Use with Nature” by Olympia Noire. Thurston 2040 Photo Contest Winner. "We are guaranteed a brighter, more vibrant future through proper land use balanced with ecosystems that work in harmony with nature."

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

operated by women, minorities, veterans and other under-represented populations. The CBI also

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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;

“Headed To The Pumpkin Patch” by Christina Shugart Eugy. Thurston 2040 Photo Contest Winner.

"When I think of agriculture in Thurston County I think of our family visiting Rutledge Farm and riding in a wagon to the pumpkin patch to pick our pumpkins for carving and baking. It’s become a family tradition, rain or shine. Of course, we always go through the maze too!"Tourism

TourismDrivesEconomicDevelo

pment by Ingrid Barrentine

Tourism drives economic

development through visitor

spending dollars, such as

dining out, hotels and shopping

locally.

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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

Table 8-1

Unemployment Rate

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

“Transportation By Sea” by Christina Shugart Eudy. Thurston 2040 Photo Contest Winner.

“There is an abundance of water

around Thurston County and my

favorite way to travel is by boat.

We are so very fortunate to have

this option of

transportation.”Tourism

TourismDrivesEconomicDevelop

ment by Ingrid Barrentine

Tourism drives economic

development through visitor

spending dollars, such as dining

out, hotels and shopping locally.

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Figure 8-1. Unemployment Rate: 2000-2016. SOURCE: EMPLOYMENT SECURITY DEPARTMENT/LMPA, ; U.S. BUREAU OF LABOR STATISTICS, LAUS.

Table 8-2

Civilian Labor Force

0%

2%

4%

6%

8%

10%

12%

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

Unemployment Rate: 2000-2016

Thurston Unemployment Rate Washington Unemployment Rate

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Figure 8-2. Thurston County Civilian Labor Force, Employment, and Unemployment: 2000-2016 SOURCE: EMPLOYMENT SECURITY DEPARTMENT/LMPA;, U.S. BUREAU OF LABOR STATISTICS, 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.

128,724

121,382

7,342

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

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

Labor Force, Employment and Unemployment: 2000-2016

Civilian Labor Force Total Employment Total Unemployment

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Figure 8-3

Taxable Sales Revenue in Thurston County

Figure 8-3. Taxable Sales Revenue in Thurston County: 1996-2016.. SOURCE: WASHINGTON DEPARTMENT OF REVENUE.

Figure 8-4

Per Capital Taxable Sales in Thurston County

Figure 8-4. Taxable Sales Per Capita: 1996-2016. SOURCE: WASHINGTON DEPARTMENT OF REVENUE, JRO + CO.

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Bill

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Regional Taxable Sales Comparison: 1996-2016

Olympia Lacey Yelm Tumwater Unincorporated Thurston

$5,311

$25,690

$42,097

$29,482

$20,919

$0

$10,000

$20,000

$30,000

$40,000

$50,000

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Taxable Sales Per Capita Comparison: 1996-2016

Unincorporated Lacey Olympia Tumwater Yelm

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Table 8-1. Average Annual Wages and Employment by Industry. SOURCE: WASHINGTON STATE EMPLOYMENT SECURITY DEPARTMENT, COVERED EMPLOYMENT (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

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 sectors.3.

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

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

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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 Sustainable Thurston 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

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.:

Table Figure 8-15

Comparison of Thurston County Economic SectorsThurston Regional Gross Product: 2001-

2016

By Employment and Wage Earnings

Thurston County's Economic Sector Percentage of Employment Percentage of Wage

Earnings

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%

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

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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: Labor Market Information Center, Washington State Department of Employment Security, Labor

Market, and Economic Analysis (www.wa.gov/esd/lmea). Most recent available data.

Figure 8-5. Thurston Gross Regional Product: 2001-2016. SOURCE: JOBSEQ; THURSTON EDC,; 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.

Table Figure 8-26

Trade and Service Employment Economic Sector Changes

$12

$0

$5

$10

$15

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

Bill

ion

s

GRP Growth: 2001-2016

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By Total Increase and Average Annual Rate of IncreaseComponents of Regional Gross

Product, 2016

Thurston County's Total Percent Increase Percent of Total Employees

Economic Sector 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%

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: Washington State Department of Employment Security, Labor Market Information, Covered

Employment and Wages by Industry (www.wa.gov/esd/lmea). “The Profile,” TRPC.

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Figure 8-6. Thurston County Components of Gross Regional Product. SOURCE: JOBSEQ; THURSTON EDC,; 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 2017.5. 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.

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 acres14,388 acres

(fivenineteen percent) of farmland was converted to other uses from 201207 to 20127.6 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

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

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

Quick Stats, 20127

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]: Some data has been updated from the PC Public Hearing draft to reflect the 2017 ag census , based on public comment received

Commented [MT6]: Aquaculture?

Commented [IL7R6]: 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.

Commented [MT8]: Specifically fishing, or aquaculture

Commented [IL9R8]: Agriculture, forestry, fishing, and hunting are all counted as one group by The North American Industry Classification System (NAICS)

Economic



8-18

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

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, Recreation and Open

Space) 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

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 [KN10]: Would it be helpful to provide some of the information on why only 51% have enrolled?

Commented [IL11R10]: Possible future discussion point. CPED Charissa possible resource.

Commented [MT12]: Comment from Bill Zachmann recommending to update this number with a more recent figure (#1937). If a more recent comparable metric is available, will consider updating.

Commented [KN13]: 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 [MT14R13]: 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.

Economic



8-19

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 tableTable 8-2 below provides a snapshot

of the size and count of farms in Thurston County from 20127. For example, in 20127 there were

2938 farms that operated between 140 and 179 acres. Thosee 2938 farms represented 23 percent

of all the individual farms, of all sizes, in Thurston County. The total area operated by these 2938

farms was 4,5486,001 acres (6 percent of all operated farm area).

Table 8-12. Acres of farmland and count of farms sorted by farm size category. SOURCE: UNITED STATES DEPARTMENT OF AGRICULTURE, CENSUS OF AGRICULTURE, 20122017.

ACRES FARMS AVERAGE

FARMS BY CATEGORYSIZE Acres % CountNumb

er % Acres/Farm

AREA OPERATED: (1.0 TO 9.9 ACRES) 2,7292,047 4% 590444 4437

% 4.6

AREA OPERATED: (10.0 TO 49.9 ACRES) 1101,702096 14% 470490 3541

% 22.86

AREA OPERATED: (50.0 TO 69.9 ACRES) 34,493166 5% 6173 56% 57.31

AREA OPERATED: (70.0 TO 99.9 ACRES) 54,269078 7% 6551 54% 81.10.0

AREA OPERATED: (100 TO 139 ACRES) 45,558432 6% 4047 34% 114115.06

AREA OPERATED: (140 TO 179 ACRES) 46,548001 6% 2938 23% 156.87.9

AREA OPERATED: (180 TO 219 ACRES) 2,585(D) 3%(D

) 1311 11% 198.8(D)

AREA OPERATED: (220 TO 259 ACRES) 32,112129 43% 139 11% 239.46.6

AREA OPERATED: (260 TO 499 ACRES) (D)5,475 (D)9

% 2818 22% (D)304.2

AREA OPERATED: (500 TO 999 ACRES) 108,814997 14% 1812 1% 600.8749.8 AREA OPERATED: (1,000 TO 1,999 ACRES) 107,150621

1312% 86 1% 1268.870.2

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

Total (From USDA Census Source) 7662,638250 100% 1,336200 100% 5751.49 Total (Calculated, missing data not included) 5754,960995

7688% 1,336200 100% 43.45.8

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

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

Commented [MT15]: Updated with 2017 ag census data based on public comment received.

Economic



8-20

The local farming industry has trended towards smaller farms. Since 20072012, the average farm

size has decreased from 63 57 acres to 57 52 acres in 20122017, a 10 180 percent change.11

However, oOver that same time period, the number of farms has increased decreased from

1,2881,336 to 1,336200. Of those 1,336 200 farms, 44 78 percent (590934) are less than 185010

acres.12 Further, only 20 percent of the farms in Thurston County consist of more than 50 acres and

only nine seven 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 tableTable 8-3 below provides a

snapshot of the sales and countnumber of farms in Thurston County from 20122017. For example,

in 2012 2017 there were 234 168 farms that generated between $1,000 and $2,499 in annual farm

sales. The 234 168 farms represented 1418 percent of all the farms in Thurston County. The total

area sales generated by these 234 168 farms was $391267,000 acres (less than 1 percent of all

operated farm areafarm sales).

Table 8-13. Sales and count of farms sorted by farm sales category. SOURCE: UNITED STATES DEPARTMENT OF AGRICULTURE, CENSUS OF AGRICULTURE, 20172.

SALES FARMS AVERAGE

FARMS BY ANNUAL SALESCATEGORY $ %

CountNumber % $/Farm

FARM SALES: (LESS THAN $1,000 $) 6976,000 0% 512426 3836

% 135178

$FARM SALES: (1,000 TO $2,499 $) 391267,000 0% 234168 1814

% 1,671589

FARM SALES: ($2,500 TO $4,999 $) 551601,000 0% 153170 1114

% 3,601535

FARM SALES: ($5,000 TO $9,999 $) 1,210119,000 1% 177162 1314

% 6,836907 FARM SALES: ($10,000 TO $19,999 $) 1,325505,000 1% 98105 79% 13,5204,333 FARM SALES: ($20,000 TO $24,999 $) 409615,000 0% 1928 12% 21,526964 FARM SALES: ($25,000 TO $39,999 $) 9691,310,000 1% 3141 23% 31,258951 FARM SALES: ($40,000 TO $49,999 $) 569518,000 0% 1312 1% 43,769167 FARM SALES: ($50,000 TO $99,999 $) 2,0571,047,000 21% 3015 21% 6869,567800 FARM SALES: ($100,000 TO $249,999 $) 5,252644,000 43% 3234 23% 164166,125000

11 United States Department of Agriculture, Census of Agriculture, County Profile, 20127

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

Quick Stats, 2012

Commented [MT18]: Data updated since PC Public Hearing draft to reflect 2017 ag census data, per public comment received by SSCFLT.

Commented [KN16]: Can “count” be changed to “number”? It just seems like it isn’t clear before reading the example.

Commented [MT17]: Changed from PC Public Hearing Draft to reflect corrected text related to table below based on public comment from SSCFLT.

Economic



8-21

FARM SALES: ($250,000 TO $499,999 $) 23,794809,000 21% 812 1% 349317,250417

FARM SALES: ($500,000 OR MORE $) 106159,827580,00

0 8791% 2927 2% 35,683910,6903

70

Total (From Source) 122176,423091,000 100% 1,336 100% 91146,634743

Most of the farms in Thurston County (81 77 percent) are on the smaller end of farm sales (less

than $10,000). In contrast, 87 91 percent of total farm sales ($107 159 million) is generated by only

2 percent of all the farms (29 27 farms) in Thurston County. Of the total $122 176 million in

countywide farm sales, crop sales generated approximately $49 56 million (40 32 percent) and

livestock sales generated roughly $74 119 million (60 68 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 online.14. 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 revenue.15. 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.

Land use / infrastructure to meet local demand for agriculture

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.

13 TRPC, Buildable Lands Report for Thurston County, 2014

14 American Planning Association, Retail Realities, 2018

15 American Planning Association, Retail Realities, 2018

Commented [MT19]: Updated 7/8/19 with 2017 ag census data, based on public comment received.

Economic



8-22

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.

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.

Table 8-7

Visitor Spending and Earnings

Figure 8-7. Thurston County Visitor Spending & Earnings. SOURCE: DEAN RUNYAN AND ASSOCIATES;, EXPERIENCE OLYMPIA AND BEYOND.

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,

$303

$86

$0

$50

$100

$150

$200

$250

$300

$350

2000 2005 2010 2014 2015 2016

Visitor Spending and Earnings, 2000-2016

Visitor Spending (Millions) Earnings (Millions)

Economic



8-23

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

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

Clipping from Thurston Bountiful Byway Map. The map highlights agritourism paths and amenities. SOURCE: THURSTON BOUNTIFUL BYWAY FROM EXPERIENCE OLYMPIA, 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

16 Experience Olympia, Annual Report, 2017

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

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

Economic



8-24

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.

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 𝐸𝑚𝑝𝑙𝑜𝑦𝑚𝑒𝑛𝑡

𝑁𝑎𝑡𝑖𝑜𝑛𝑎𝑙 𝑇𝑜𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑚𝑒𝑛𝑡)


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

Relatively Fewer Jobs

Relatively More Jobs

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

LQ v

alu

e

Location Quotients

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

TourismDrivesEconomicDevelopment by Ingrid Barrentine

Tourism drives economic development through visitor spending dollars, such as dining out,

hotels and shopping locally.

Commented [AO20]: Call out box – chapter 3

Economic



8-25

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.

Table 8-4: Low and High Dollar Per-Acre Estimates for Agriculture and Forest Lands Agricultural Land Forest

Ecosystem Services Low High Low High

Aesthetic and Recreational $2.06 $29.63 $0.21 $2,174.8

Biological Control $14.18 $14.18 $9.69 $10.04

Disturbance Regulation $2.10 $2.10 $1.4 $5.14

Erosion Control $5.82 $5.80 $112.58 $112.58

Food Provision

Gas and Climate Regulation $11.02 $128.16 $14.55 $1,066.61

Habitat Refugium and Nursery

$1.22 $538.95

Nutrient Cycling $8.80 $22.32 $74.28 $1,135.64

Pollination $2.59 $427.34 $67.84 $413.73

Raw Materials

$1.87 $1.87

Science and Education

$39.72 $68.37

Soil Formation $2.27 $5.82

Waste Treatment

$169.01 $169.01

Water Regulation

$10.35 $588.57

Water Supply

$1,395.98 $1,770.14

Medicinal Resources

Total $48.84 $635.38 $1,898.7 $8,055.45 SOURCE: SUMMARIZED TABLE FROM THE NATURAL VALUE OF THURSTON COUNTY, EARTH ECONOMICS, 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

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

Rapid Ecosystem Service Valuation”. Earth Economics.

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

Commented [MT21]: New section from staff draft incorporating the Earth Economics report.

Economic



8-26

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

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.


Commented [AO22]: Section moved up from below

Economic



8-27

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

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 2016.27. 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.

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

Economic



8-28

Figure 8-8. Thurston County Population & Employment Growth: 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

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.

207,355

267,410

102,904121,382

0

100,000

200,000

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

Economic



8-29

Figure 8-9. Median Wage: 1989-2016. SOURCE: WASHINGTON OFFICE OF FINANCIAL MANAGEMENT, US CENSUS BUREAU.

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

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

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

Worker, 2017.

$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

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

Median Household Income, Select Geographies: 1989-2016

Washington Thurston Pierce KingPacific Lewis Mason Grays Harbor

Economic



8-30

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.

Figure 8-10. Class of Worker. SOURCE: U.S. CENSUS BUREAU, AMERICAN COMMUNITY SURVEY, 2016.

0%

10%

20%

30%

40%

50%

60%

70%

Private wage andsalary

Government workers Self-employed Unpaid family workers

63.2%

30.2%

6.2%

0.2%

40.6%

17.1%

21.3%

9.7%

Class of Worker, Thurston vs. Washington State: 2016

Thurston County

Washington State

Economic



8-31

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, Forbes Magazine 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

❖ Advanced Manufacturing

❖ Wood Products

❖ Agriculture and Food Manufacturing

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).

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

1,069 1,3102,031

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Information Arts,entertainment,and recreation

Agriculture,forestry, fishing

and hunting

Target Industry Employment Change, 2012

2012 2013

Economic



8-32

Table 8-8 Target Industry Employment Change Figure 8-11. Thurston County Target Industry Employment Change.

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

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.

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, fishing

and hunting

Manufacturing Professional andtechnicalservices

Accommodationand foodservices

Health care andsocial assistance

Target Industry Employment Change: 2012-2016

2012 2013 2014 2015 2016

Economic



8-33

Figure 8-9

Supply Chain Gaps by Industry Sector

Figure 8-12. Supply Chain Gaps by Industry Sector. SOURCE: JOBSEQ,; THURSTON EDC;, 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

Economic



8-34

Figure 8-10

Employment Gap by Industry Sector

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)

Economic



8-35

Figure 8-13. Employment Gap by Industry Sector. SOURCE: JOBSEQ; THURSTON EDC;, 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)

Economic



8-36

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.)

Figure 8-11

Population vs. Employment Growth: 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.

Table 8-12

Median Wage: 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

Economic



8-37

SOURCE: WASHINGTON OFFICE OF FINANCIAL MANAGEMENT, US CENSUS BUREAU

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

Economic



8-38

Figure 8-13

Class of Worker

SOURCE: AMERICAN COMMUNITY SURVEY

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.

Table 8-14

Poverty by Family Cohort

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

Economic



8-39

Figure 8-14. Poverty by Family Cohort: 2014-2016. SOURCE: U.S. CENSUS BUREAU, AMERICAN COMMUNITY SURVEY.

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 workers.32. 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

Economic



8-40

❖ 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.

Table 8-15

Housing Affordability for Buyers with Home Equity

Figure 8-15. Housing Affordability for Buyers with Home Equity. SOURCE: WASHINGTON CENTER FOR REAL ESTATE RESEARCH, WSU.

0

50

100

150

200

250

Q1

: 20

10

Q2

: 20

10

Q3

: 20

10

Q4

: 20

10

Q1

: 20

11

Q2

: 20

11

Q3

: 20

11

Q4

: 20

11

Q1

: 20

12

Q2

: 20

12

Q3

: 20

12

Q4

: 20

12

Q1

: 20

13

Q2

: 20

13

Q3

: 20

13

Q4

: 20

13

Q1

: 20

14

Q2

: 20

14

Q3

: 20

14

Q4

: 20

14

Q1

: 20

15

Q2

: 20

15

Q3

: 20

15

Q4

: 20

15

Q1

: 20

16

Q2

: 20

16

Q3

: 20

16

Q4

: 20

16

Q1

: 20

17

Q2

: 20

17

Aff

ord

abili

ty In

de

x

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: 2011 Q3: 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

Economic



8-41

Table 8-16

Housing Affordability for First-Time Buyers

Figure 8-16. Housing Affordability for First-Time Buyers. SOURCE: WASHINGTON CENTER FOR REAL ESTATE RESEARCH, WSU.

0

50

100

150

200

250

Q1

: 20

10

Q2

: 20

10

Q3

: 20

10

Q4

: 20

10

Q1

: 20

11

Q2

: 20

11

Q3

: 20

11

Q4

: 20

11

Q1

: 20

12

Q2

: 20

12

Q3

: 20

12

Q4

: 20

12

Q1

: 20

13

Q2

: 20

13

Q3

: 20

13

Q4

: 20

13

Q1

: 20

14

Q2

: 20

14

Q3

: 20

14

Q4

: 20

14

Q1

: 20

15

Q2

: 20

15

Q3

: 20

15

Q4

: 20

15

Q1

: 20

16

Q2

: 20

16

Q3

: 20

16

Q4

: 20

16

Q1

: 20

16

Q2

: 20

17

Aff

ord

abili

ty In

de

x

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: 2011 Q3: 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

Economic



8-42

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. Sustainable Thurston 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

Commented [IL23]: Planning Context is Heading 1 and it’s own section in other chapters.

Commented [AO24]: Moved

Economic



8-43

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

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 Sustainable Thurston 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. Sustainable Thurston 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

Economic



8-44

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.

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.

Table 8-3

2000 Land Supply in Thurston County – Industrial and Commercial Zoning

Industrial Land Supply (acres) Commercial Land Supply

(acres)

Jurisdiction Vacant or Land with Total Vacant or Land with Total

Economic



8-45

Partially Redevelopment Partially Redevelopment

Used Land Potential Used Land Potential

Bucoda 1 0 1 7 2

9

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

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

Total Urban 4,229 483 4,712 4,200 1,042 5,242

Total Rural 568 43 611 279 92 371

Thurston Total 4,797 526 5,323 4,479 1,134

5,613

Source: Buildable Lands Work Program, 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.

Economic



8-46

IIIVV. 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.

GOAL 1: 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.

OBJECTIVE A: 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 [MT25]: This was labeled III in PC Public Hearing Draft. Updated 6/25/19

Commented [J26]: 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 [IL27]: Source: Ian Reworded previous, add coordination.

Commented [AO28]: Discuss possible new policy with EDC and others

Commented [IL29R28]: Provided by EDC/Subconsultant

Commented [IL30]: Category: Stakeholder Input Source: Thurston Thrives Economy Strategy Map

Economic



8-47

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 [IL31]: Policy added from PC comments

Commented [IL32R31]: Policy language updated per 4/17/2019 PC Commissioner feedback

Commented [AO33]: Add a foundation for this in the chapter

Commented [IL34R33]: Added context above.

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11. g. Repurposing underutilized spaces into communal spaces.

OBJECTIVE B: Business Expansion, New Businesses, and Home Businesses

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 [IL35]: Category: BMP Source: MSP Design https://mspdesign.com/2017/08/7-steps-planning-makerspace/

Commented [IL36R35]: 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 [AO37]: Move to Action plan

Commented [J38]: 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

https://makerspaces.make.co/

https://makerspaces.make.co/

http://eugenemakerspace.com/wp-content/uploads/2018/02/Maker_DayToolkit_ver2_revised.pdf






https://bellinghammakerspace.org/

https://bellinghammakerspace.org/

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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.

OBJECTIVE C: Utility Planning for Economic Development. 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.

OBJECTIVE D: Industrial and Commercial Lands. 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 [IL39]: 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 [J40]: If this stays in, we’d probably want to add sub-bullets re criteria, community notice and review, etc.

Commented [IL41R40]: 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.

OBJECTIVE E: 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 [IL42]: Delete per PC Meeting Public Input

Commented [IL43]: Leave as bullets or change to a/b/c?

Commented [IL44]: Source: Ian Maybe redundant but I want to make sure that Agritourism is visible.

Commented [IL45]: Clarified per PC Commissioner input

Commented [IL46]: 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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OBJECTIVE F: Development Standards. 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.

chapter 8 economic development - thurston county

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