Bellevue staff report progress on 2025 economic development plan; council presses on permitting and small-business support

City staff presented an informational update Sept. 9 on Bellevue’s 2025 economic development plan, highlighting data analysis and community engagement that will shape draft strategies to return to council on Oct. 7 and a targeted adoption in December.

The presentation summarized quantitative findings and stakeholder feedback. Staff said Bellevue has added jobs over the past two decades but that the number of people who both live and work in the city has remained “largely flat” at about 15,000 — a finding staff said underlines the city’s interdependence with the regional workforce and the need to address housing and commuting. Bellevue’s comprehensive plan calls for adding 70,000 jobs by 2044; staff said employment growth must outpace recent trends to reach that target.

Staff highlighted several specific metrics: small businesses account for about 21% of Bellevue employment; downtown office vacancy is forecast to return to a roughly 10% healthy range by 2029, while Eastgate and Factoria show much higher projected vacancy around 42%; Bellevue’s industry‑diversity index compares favorably with peers; and the creative sector — both traditional arts and digital creative firms — remains a local strength.

Jesse Cannato, chief economic development director, and staff described a two‑pronged community outreach program (focus groups and one‑on‑one interviews) that gathered about 2,000 data points and engaged hundreds of stakeholders, including property owners, employers and small businesses. Staff said the consultants and city teams will present draft strategies Oct. 7 and a draft implementation plan in November.

Reaction from council: members across the chamber pushed staff to make permitting reform and small‑business supports higher priorities. Council member Newenhouse and others said permitting time and costs are a real constraint for small businesses; Council member Lee and others asked for more granular counts and demographics for small‑business outreach; Council member Hamilton and others urged anti‑displacement strategies for businesses in neighborhoods facing redevelopment, such as Bel‑Red, Eastgate and Factoria. Deputy Mayor Malcoutian and Council member Suma Dueriya recommended workforce development tied to emerging sectors such as artificial intelligence, with suggestions for partnerships with Bellevue College and local employers.

Staff acknowledged the concerns and said the forthcoming draft strategies will propose targeted actions — including small‑business technical assistance, outreach and incentives — and that the implementation plan will include tactics and budget considerations. Staff also said they are working with regional partners, brokers and lead‑generation consultants to attract and retain office tenants, noting continued demand for smaller footprints in downtown Bellevue and some office absorption tied to local expansions.

The presentation was informational; no formal action was taken. Council members asked staff for follow‑up including: a breakdown of which stakeholders were engaged (by neighborhood and sector), metrics showing small business touchpoints and outcomes, a more detailed plan for addressing permitting bottlenecks and an analysis of state tax and regulatory factors that affect Bellevue’s competitiveness. Staff said the consultants have been asked to compare Washington policy and tax conditions with competitor states as part of the work leading to the draft strategies.