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Issaquah reviews 2026 economic development work plan, stresses retention and housing
Summary
Economic development staff presented a 2026 work plan focused on business retention and expansion, housing development, downtown activation and workforce initiatives; council pressed staff for clearer ROI metrics, equity protections, and next steps on housing and downtown programs.
Issaquah officials on the council dais heard a detailed presentation from Economic Development and Housing Manager Alexis Fitz Simmons on the citys 2026 economic development work plan, which centers on business retention and expansion, housing development, communications and engagement, and workforce development.
Fitz Simmons told the council the plan is organized around three objectives: "access to opportunity, to convene and catalyze, and to leverage Issaquah's assets," and described programs ranging from targeted business visits and Startup 425 regional entrepreneurship collaboration to the Homegrown Retail pop-up program and summer weekend Front Street closures designed to increase downtown foot traffic.
Why it matters: Councilmembers said they support proactive work to retain employers and help small businesses grow but asked for clearer metrics and a willingness to end programs that do not deliver measurable results.
What staff presented Alexis Fitz Simmons described a multi-pronged approach: conduct 30 business retention visits in 2026 (19 completed as of early May), support startup entrepreneurs via the Startup 425 network and an accelerator referral pipeline, run the Homegrown Retail pop-up with eight businesses this year (12 applicants), and coordinate downtown events in partnership with the Downtown Issaquah Association (DIA). She said the city uses the CoStar platform to track commercial vacancies and works with partners for outreach and placement.
Fitz Simmons also reported an $83,000 Port of Seattle grant for 202526 2026 that required a $41,500 local match. She said the grant supports three project categories: small-business technical assistance (roughly $45,000/year tied to Startup 425), business retention/expansion (about $40,000 remaining for 2026), and tourism marketing and events.
Council reaction and requests Councilmembers repeatedly asked staff to identify what is and is not working and to adopt measurable goals. "I would really like to get into being very clear about what is and what isn't working and be willing to cut out the things that aren't effective," Councilmember Walsh said.
Members pressed for more explicit equity safeguards in programs (who gets priority for Homegrown Retail slots, whether residents are prioritized), asked whether incentives or connections exist to help successful pop-ups move into permanent leased space, and sought clarity on workforce-development ROI and the role of the city versus school and regional partners.
Operational details raised by council - Front Street closures are planned every weekend in August from 8:00 a.m. Saturday to 10:00 p.m. Sunday; programming and vendor lists are being coordinated with DIA and partner organizations. - The city monitors commercial availability on CoStar and relies on DIA for downtown leasing intelligence. - Staff plan continued builder roundtables through 2026 with the next session in July focused on nonprofit builders.
What's next Council requested follow-up on program metrics and a prioritized list of actions to scale or stop. Staff said they will continue builder engagement, coordinate with Community Planning & Development on permitting/zoning reforms, and report back on measurable outcomes and any program refinements.
Ending note Council lauded the departments outreach and emphasized the need for clearer performance metrics so budget and staff time concentrate on activities with demonstrable community and economic impact.
