Council hears economic development framework focusing on redevelopment, retail leakage and business retention

Mill Creek, Wash. — In a study session Nov. 11, Community Development and Planning staff presented an economic development framework for the Mill Creek trade area that focuses on redevelopment of aging commercial centers, reducing retail spending leakage and strengthening business retention and attraction.

Community development staff noted the trade area’s low vacancy rates in office and retail markets but flagged a negative net absorption signal and an estimated annual retail leakage of about $140 million, meaning local residents spend that portion of retail dollars outside the trade area. "Redevelopment provides a big opportunity for us," the presenter said, recommending simpler code, targeted public-private partnerships and use of city parcels to catalyze higher-value commercial projects and new housing near transit.

Council discussed business-retention programs and whether the city should staff or contract outreach; staff suggested a mix of in-house concierge services and partnerships with regional economic organizations and chambers. Staff proposed a short-term action plan to produce an economic development action plan within six months, followed by medium-term zoning/code amendments and a three- to five-year performance-tracking program.

What’s next: Staff will incorporate council feedback into an action plan and return with code amendment proposals and proposed performance indicators.