Committee begins update to Tacoma economic development strategy; focus on neighborhood business districts and tools to prevent displacement

The Economic Development Committee held a work session Jan. 14 to begin updating Tacoma’s 2020–2025 economic development strategic plan and to review focus area 4: neighborhood business district revitalization. Rebecca Solverson, division manager for Arts and Cultural Vitality, and Sherry Hart, business and economic development analyst, summarized recent accomplishments and asked the committee for direction on prioritization, stakeholders, anti‑displacement measures and program changes.

Solverson framed the discussion by noting changes since the original plan’s 2019 adoption and the role of community in economic development. “This focus area, I think, is the one that really highlights how community and economic development support each other and are really one and the same,” she said. Solverson and Hart reviewed programs and projects the department has led in recent years, including the Links to Opportunity Project tied to the Hilltop Tacoma Link Extension, Business Improvement Area (BIA) work in the Hilltop and plans for BIA efforts on Sixth Avenue and in South Tacoma, and property‑ownership support that helped small legacy businesses such as Burger Soul and Bob’s Barbecue.

Hart described project accomplishments, cross‑department partnerships and program changes. She said work included contractor support for community-driven corridor design in Hilltop, design assistance to local business owners, storefront and restaurant retrofit grants during the pandemic, and a “defederalization” of the city’s revolving loan fund to remove prevailing wage requirements that the department said had been an administrative barrier for small projects.

Committee discussion focused on how best to target limited staff and funding, how to support both established and nascent business clusters, and how to provide practical assistance—such as commercial leasing workshops, language access and navigators—to businesses preparing to occupy commercial space. Multiple councilmembers urged staff to prioritize districts where public investment or rapid private‑sector transition is occurring and to lean on existing business district associations and brokers for local intelligence.

Councilmembers and staff discussed whether to maintain an inventory of vacant or underused properties. Staff described a recent windshield survey completed in late 2024 but cautioned that maintaining a comprehensive inventory is labor intensive; several councilmembers suggested relying on business district associations and commercial brokers for ongoing, local information. Councilmembers also recommended a clearer pathway for nonofficial clusters—areas with several businesses that are not formal associations—to access planning and modest funding, and they advocated for continued investment in TA and workshops to help owners with leases, permits and building upgrades.

Committee chair Trey Daniels said staff have long discussed updating the neighborhood business district ordinance. “We have wanted to refresh, reframe the neighborhood business district ordinance, which is part of the administrative plan that lays out some of the things you just talked about,” he said, adding that staff expect to propose changes that would allow the program to respond to both formal business-district association needs and smaller, cluster‑based needs.

Several councilmembers urged that the program be structured so city assistance does not disproportionately consume staff time chasing absentee owners or properties that have no interest in activation. Staff said the department will consider more flexible, clearly articulated criteria for when to invest staff time and when to prioritize neighborhood or district applications that demonstrate local organization and readiness.

Ending: Staff will use the committee’s input to draft revised program language and recommended changes to the neighborhood business district approach; they plan to return with more concrete proposals and edits to the ordinance and program guidelines for committee review.