HomeMy WebLinkAbout2014-02-03 City Council Minutes Approved City Council Minutes—February 3, 2014
At 7:00 p.m. Mayor Laurie Gere called the regularly scheduled Anacortes City Council meeting of
February 3, 2014 to order. Roll call found present: Eric Johnson, Ryan Walters, Erica Pickett, Brad
Adams, Liz Lovelett, John Archibald and Matt Miller. The assembly joined in the Pledge of Allegiance.
Minutes of Previous Meeting
Mr. Johnson corrected the minutes of January 21, 2014 regarding Ordinance 2919 to include Mr. Walter's
request not to have a reconciliation process as part of future water levy determinations. Mr. Johnson
moved, seconded by Mr. Adams, that the minutes of January 21, 2014 and January 27, 2014 be
approved with that addition. Vote: Ayes—Walters, Pickett, Adams, Lovelett, Archibald, Miller and
Johnson. Motion carried.
Citizen Hearings
No one present wished to speak on any topic not on the agenda.
Mayor/Council Communication and Committee Reports
Skagit Valley Tulip Festival Presentation: Cindy Verge, Executive Director of the Skagit Valley Tulip
Festival, handed out 2014 Tulip Festival brochures. Ms. Verge thanked the City for its longtime support of
the festival through Hotel/Motel tax funding. She presented the mayor with a framed print of the 2014
Tulip Festival poster painted by Luke Tornatzky of Port Townsend.
Executive Summary of Mayor's Listening Tour: Mayor Gere presented a report prepared by her Transition
Team summarizing the results of the Mayor's Listening Tour. The mayor reported that the Transition
Team had disbanded at the end of January and thanked them for their service. She said the team sought
input from over 70 local organizations and received 243 responses to the survey. Mayor Gere listed the
seven cross-cutting themes that emerged as top priorities: open, transparent, accessible City
government; a community-wide visioning process; a proactive, integrated strategy for economic
development; a safe environment; steps to protect the natural environment and reduce pollutants; clear,
simple City administrative processes; and working in tandem with local, county and state entities. The
mayor added that the complete report and the tabulated survey responses were posted on the City
website.
Mrs. Pickett reported that she, the mayor, and several department heads attended the CSB report at
Brodniak Hall about the Tesoro explosion. She said the report was very detailed and she thanked the
Tesoro workers who spoke eloquently during the evening.
Mayor Gere removed Item 7b, the Udd real estate transaction from the agenda and said it would come
back to Council at a later date.
Mayor Gere reported that she, councilmembers Miller and Lovelett, Public Works Director Fred
Buckenmeyer, Planning Director Ryan Larsen and Human Resources Director Emily Schuh attended the
Association of Washington Cities legislative conference in Olympia the prior week and met with
Representatives Lytton and Morris and Senator Ranker. The mayor said the group emphasized
community issues including transportation, City responsibilities involved with the legalization of marijuana,
simpler taxation on recreational services, EMS levy caps, and the importance of the trail system to
Anacortes.
Mr. Walters reported from the Finance Committee that it had been working on a fund balance policy, an
employee cell phone reimbursement and use policy, a sewer rate policy for entities that use significantly
less sewer than water, a donation ordinance, and a revised procedure for payment of claims.
Anacortes City Council Minutes February 3, 2014 1
Mr. Walters reported that the Public Works Committee met the prior week and discussed the 3MG water
storage tank on Whistle Lake Road, garbage automation, trucks on M Avenue and the Pavement
Management Plan.
Mr. Walters reported that the Planning Committee met earlier in the evening on a number of items. He
raised the question of the role of the Planning Committee in land use legislation.
Consent Agenda
Mr. Johnson moved, seconded by Mrs. Pickett, to approve the following Consent Agenda items. Ms.
Lovelett disclosed that she sits on the Board of the Anacortes Farmer's Market. No one present objected
to her vote on this matter. Vote: Ayes—Pickett, Adams, Lovelett, Archibald, Miller, Johnson and Walters.
Motion carried.
Approval of Vouchers/Cancellation of Checks
Council voted unanimously that the following vouchers/checks audited and certified by the City's Auditing
Officer(Finance Director) and subsequently reviewed and approved by the Council Finance Committee
on January 22, 2014 and January 29, 2014 are approved for payment as of February 3, 2014.
Claims:
Check Numbers 71228 through 71348 in the total amount of$348,657.24
EFT Number 71227 in the total amount of$1,777.00
In the same motion Council approve a Street Fair Application for the Art of Gardening on April 26 and
April 27, 2014 from 10:00 a.m. to 3:00 p.m.
Finance Update
Finance Director Steve Hoglund presented a fourth quarter 2013 financial update. He reviewed general
fund revenues by source, noting that sales tax and building permits both came in significantly more than
projected. Mr. Hoglund explained other variations over and under projections and summarized that overall
general fund revenues were 3% higher than budgeted totaling $10,705,169. Mr. Hoglund then reviewed
general fund expenditures by department explaining the few items that were slightly higher than
budgeted. He concluded that overall general fund expenditures came in at 98% of budget. Mr. Hoglund
then provided a more detailed review of sales tax, impact fees and real estate excise tax revenue
compared to prior year and said the trends were up. Mr. Hoglund then reviewed revenues and
expenditures in the other funds. He concluded that overall city-wide revenue exceeded expenditures
during 2013 by over$3.5M.
Unfinished Business
Public Hearing: MJB Comprehensive Plan Map Amendment and Rezone Request
Mayor Gere advised that Planning Director Ryan Larsen would introduce the evening, Museum Education
Coordinator Bret Lunsford would provide a historical look at the industrial zone, then members of the
public would be invited to speak beginning with those who did not speak at the last session on January
21. The mayor asked speakers to limit themselves to three minutes to give everyone a chance to speak.
She said that after all citizen testimony the proponent would be given an opportunity for rebuttal.
Mr. Larsen highlighted written testimony submitted by Police Chief Bonnie Bowers regarding impacts of
big box stores on police calls in the region. Mr. Larsen also reported that there had been a correction to
the projected sales tax revenue included in the MJB presentation from the January 21, 2014 City Council
meeting: the projected sales tax revenue to Anacortes would be $300K rather than $705K.
Citizen Bob Barry asked if it had been determined if Council had authority to respond to MJB's proposal
at this time. City Attorney Brad Furlong said yes, the City did have authority.
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Mr. Lunsford then presented a slideshow overview of the economic history of the area proposed by MJB
for rezone including early industrial activity, the demise of the mills, the urban renewal project in the
1960s, the Snelson-Anvil modular construction project in the 70s and 80s, and prior land use proposals
by MJB since it acquired the property in 1991.
Ron Smith, 14543 Jura Place, architect, said he respected MJB's ability to create a viable project but
cautioned Council against rezoning the MJB property without fully considering all the impacts of that
action. Mr. Smith said he and his wife, Ann, own commercial space and retail businesses downtown but
after recently significantly upgrading their spaces they are holding off on future investment until they know
the future. He described the special retail community in Anacortes. Mr. Smith said there is no town
square, or piazza, no center of town, but MJB is proposing to further disperse traffic and retail
development. Mr. Smith said Anacortes zoning makes sense now and questioned adding new
commercial development two blocks east of Commercial Avenue. He urged Council to allow the project to
be part of the 2016 Comprehensive Plan so the community could participate in a more complete and
relevant process.
Marilyn Stadler, 2301 35th Court, accompanied by her husband, Mark, said they support commercial
rezoning of the MJB properties. She said a 100,000 SF Fred Meyer would be a great addition to the city.
She said the Hebert report is right, a lot of money is leaving Anacortes. She said her family purchases
things in Burlington that they can't get in Anacortes and that they save more by shopping there than it
costs in gas to travel. Mrs. Stadler said the Council and Mayor must consider that bringing a new retailer
to this area will be better for Anacortes and will bring economic development including jobs. She said
about 20% of Anacortes residents are over 55 and don't like to drive across the valley and others can't
afford to do so. Mrs. Stadler said Anacortes needs a Fred's and that she hoped Council would consider it.
Clay Leming, 1913 22nd Street, said MJB's application was premature. Mr. Leming said the City first
needs to decide whether any large retail should be permitted in the city limits. If so, the zoning code
should be amended to allow those types of uses. He said he hadn't seen any documentation that any
particular large retail store would in fact be located in Anacortes and called the present application
speculative. He said the Economic and Community Impact Analysis and Market Feasibility Study
prepared by Hebert contained errors and assumptions that may not be factual. Mr. Leming said the
request should be denied or postponed and incorporated into the 2016 Comprehensive Plan update. He
asked if it would be better to locate large retail in town instead of on SR20 across from Frontier Ford or on
the Reservation.
Robert Barry, 1914 22nd Street, said Council had been told there's a lot of stuff people can't buy in
Anacortes but that's not true today. Mr. Barry said a new big box store is already in town via UPS and
Fedex over the Internet. Mr. Barry said this trend has big box stores on the run and he didn't believe
Anacortes was likely to have a store wanting to build here. He said MJB had at best a vague verbal
indication of interest from Fred Meyer. He said Council should approve whatever it takes to allow such a
store to be built but require that within twelve months there be a firm contract in place with a retailer and
that construction be started within two years otherwise the zoning change would revert. Mr. Barry said
that wouldn't guarantee a store in Anacortes but would protect against the possibility of a large retailer
locating on Indian lands instead.
Jim Rard, who owner of businesses at 2417 T Avenue and 700 28th Street, said he moved his business
here 20 years ago from Seattle expecting a new marina, hotels, and exciting new things but nothing has
happened that local businesses haven't pushed through themselves. He encouraged Council to approve
the proposed change and said any change is good. He said neighboring waterfront cities are moving
ahead and being competitive while we're parking boats on our waterfront.
Carolyn Moulton, 1016 16th Street, co-owner of Bike Spot on Commercial Avenue, presented findings
from Civic Economics and the Institute for Local Self-Reliance. She cited a study published in the Journal
of Urban Economics in 2010 looking at how arrival of a large chain impacts local retailers. She said the
study analyzed 1200 big box store openings and the impacts on businesses that competed directly with
the big box and on businesses that offered different products and services. Ms. Moulton reported that the
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study found large negative effects on directly competing retailers within a five mile radius including a
substantial number of store closures while non-competing businesses experienced no positive spillover
from the new retailer. Ms. Moulton said this may be because retail spending is a relatively fixed pie. She
said the most thorough study of Wal-Mart's impact on existing retailers found that 84% of Wal-Mart sales
simply shifted dollars away from existing retailers. Ms. Moulton cited another study that found that big box
stores, compared to specialty retail shops, cause higher road maintenance costs and higher demand for
public safety. She cited a study published in Economic Development Quarterly in 2011 that analyzed
almost 3000 counties and found that counties with more small locally owned businesses enjoy greater per
capita income growth. Ms. Moulton said she'd like to know the true economic cost to the Anacortes
community if absentee owned corporations displace locally owned businesses. She described what Bellis
Fair mall did to Bellingham and urged Council not to approve the rezone but to consider it as part of the
2016 Comprehensive Plan.
Andrew Stewart, 2003 M Avenue, said he moved his marine carpentry business to Anacortes 16 years
ago and now employs four people. He said the gentrification of the region's waterfront had made it difficult
to find affordable places to practice marine trades. He said Anacortes is regionally well known to vessel
owners as a convenient hub for services and outfitting. Mr. Stewart applauded MJB's investment in the
waterfront infrastructure, especially the upcoming heavy haul out facility. He said the City has a
responsibility to provide clearly defined land use zoning building codes. He urged resumption of the
Futures Project discussions to develop a common vision for the MJB properties. He said the City should
recruit businesses that are a good fit for the community while supporting existing stakeholders. Mr.
Stewart encouraged MJB to move past intransigence and cooperate to improve Anacortes in a way all
can profit and be proud. Mr. Stewart said to spot rezone industrial land would divide the amount of land
available for industrial development and that gentrification would raise the cost of future industrial and
manufacturing activities which provide better jobs than consumer activity. He urged Council to deny the
rezone and take it up as part of the 2016 Comprehensive Plan. Mr. Stewart called for recruiting industries
that make quality useful products and employ skilled workers and for supporting the people and
businesses already here.
Lin Folsom, 1903 9th Street, echoed the comments of Mr. Leming and Mr. Stewart. She thanked MJB for
bringing forward this proposal because it shows that Anacortes needs a plan including zoning, economic
development, transportation, etc. She said an opportunity to do just that is coming with the 2016
Comprehensive Plan and she urged everyone to participate. Ms. Folsom requested that Council deny the
request and address it after a thorough Comprehensive Plan review.
Anna Holm, 1217 4th Street, Sedro Woolley, said she owns the Apothecary Spa in Anacortes and
considers herself a potential future resident. Ms. Holm described Anacortes as a perfect small town. She
observed that small communities are disappearing as convenience is becoming king. She said that a big
box store would cost Anacortes the living history that attracts visitors. She urged inviting tourists in and
said small towns grow by being unique and encouraging small business. Ms. Holm described the many
benefits of shopping locally and questioned the value of cheap merchandise.
Phil Elvrum, 2007 M Avenue, said his family has been in Anacortes since the 1800s. He said the City
Council has two jobs, first managing a large complicated business called the City of Anacortes but also
representing the spirit of the population and steering the town's identify towards an ideal community. He
said based on the last public hearing and the reaction to similar proposals in the past, it seemed clear that
Anacortes does not want a large box store. Mr. Elvrum said most places across the nation have lost their
defining characteristics. He said Anacortes remains a rare exception for now, having escaped large scale
corporate colonization so far. Mr. Elvrum acknowledged the testimony favoring considering the rezone as
part of the 2016 Comprehensive Plan update but he urged Council instead to say"no"forever. He said
formula business restriction is becoming more common as towns enact rules prohibiting chains and box
stores. He said residents have spoken clearly and repeatedly: deny this rezone and start discussing a
permanent legal barrier against future threats to what makes Anacortes wonderful and distinct.
Vernon Lauridsen, 2219 32nd Street, urged Council to follow the Planning Commission recommendations
to 1)deny the application because it is inconsistent with the current Comprehensive Plan, 2) move it to
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the 2016 Comprehensive Plan update, and 3)consider it in light of a city-wide comprehensive visioning
process and strategy for economic development. He described the proposed new C2 zone and said it
would effectively allow nearly all the permitted and conditional uses from the Commercial zone on this
industrial property as long as no building is bigger than 105,000 SF. Mr. Lauridsen said the current
Comprehensive Plan Goal 4 states, "Do not rezone additional areas for commercial development until
existing commercial areas are fully developed or shown to be inadequate for the need." He said
councilmembers have to follow the law. Mr. Lauridsen said the proposed rezone would be impermissible
spot zoning inconsistent with the Comprehensive Plan. He said there is widespread agreement to
undertake a community-wide visioning process and a long term economic development strategy. He
concluded that process should happen first before rezoning any land in Anacortes.
Jeanie Brown, 4506 Kingsway Place, commented on the Hebert Economic and Community Impact
Analysis and Market Feasibility Study. Ms. Brown said the report is flawed because it is based on a
phone survey of 200 respondents from North Whidbey Island, the San Juan Islands, and Anacortes—an
area that hosts 53,000 people. She said it is unlikely any big box store would read this report, they would
do their own market research. She said most people who moved here knew there wasn't a big box store
here.
Brian McDugle, 1014 6th Street, spoke under the Citizen Hearings section of the agenda rather than as
part of the public hearing. Mr. McDugle said he was alarmed to find out the dangers of the fluoride in the
water system. He said fluoride was implemented 53 years ago without total knowledge. Mr. McDugle read
a long list of health problems associated with fluoridated water and referred to a Harvard study on the
topic which he had distributed to councilmembers. He said this could have serious consequences and
that he would like to get it out of the water.
Diana Farnsworth, 2115 14th Street, extolled the virtues of Anacortes. She said her husband and his
partner have a business in town and she hopes to open a retail shop here. She said she values personal
relationships in local commerce. She said when she shopped at big box stores she was looking for items
she didn't expect to last. She said she wants to buy things in Anacortes that will last. She said Anacortes
has history and a value of something better, not commercialism.
Pat Barrett, 11987 Marine Drive, endorsed Mr. Elvrum's testimony. Mr. Barrett said he read the Hebert
study and it is suspect. He said if the Council and community are going to use numbers, they need to be
accurate. He said Anacortes should ask, if we rezone a piece of property, what does it do for that
business owner? If we rezone this for one business, what does it do to the value of their property? Mr.
Barrett said that's a gift and he asked what Anacortes gets in return. He noted the generous involvement
of local business owners in community affairs. He asked if Fred Meyer or Wal-Mart or Target is likely to
pay the"commercial avenue tax"to support local groups.
Andrea Doll, 1319 8th Street, asked if the community had looked at all the options for this property. She
said there are other ways to look at this property besides just industrial and C2. She suggested the
potential for a convention center, an aquarium, or a maritime interactive museum. She recounted the
experience of Astoria, Oregon which has made itself into a destination city with a reconstructed waterfront
and the Columbia River Maritime Museum. Ms. Doll said Anacortes has a similar, rich history and a
fabulous location. She urged Council and the community to consider all the options. Ms. Doll asked
Council to submit the land use question to the rigors of the 2016 Comprehensive Plan update.
Sandra Spargo, 1408 11th Street, reported that she had sent out a survey to 1700 people on her listsery
and received 87 responses, 70 of those from Anacortes. Of those, Ms. Spargo said 71% said they would
shop at an Anacortes Fred Meyer, 58% said they would buy groceries, 69% said they would buy dry
goods, and 62% said they would shop at a Fred Meyer on tribal land. She urged making Anacortes more
affordable for children. She reported that 909 Anacortes students get free and reduced lunch and said
working families need affordable clothing, housing, and groceries. She urged more price competition for
children's and teen's clothing and said charity should not be the only option for the working poor.
Anacortes City Council Minutes February 3, 2014 5
Alex Taylor, 1907 Cedar Springs Lane, said changing this zoning would open up Pandora's box with
commercial. He asked if MJB would subdivide the property, or lease the land, or sell the land. He said big
box stores bring their own construction companies so Anacortes construction companies wouldn't get
work from it. He asked what MJB would do with the property if no store was built. He asked how much
Anacortes would get in return. He pointed to the shipbuilding and rope businesses on 3rd Street and said
they bring money and jobs here, the kind of jobs Anacortes needs. Mr. Taylor said MJB hasn't made
much of an effort to develop the industrial land it has. He asked Council to do a real good study on what
Anacortes will get if the zoning is changed and said he didn't think Council should change the zoning.
Nick Rennis, 814 6th Street, owner of The Business on Commercial Avenue, said the few voices who
support a Fred Meyer don't want a Wal-Mart but there's no guarantee a rezone will result in a Fred Meyer,
nor that it will be just one box store. Responding to statements made by proponents of a big box store,
Mr. Rennis suggested that bicycling on the Tommy Thompson Trail to shop at a big box store is not
realistic, listed a number of Anacortes retail stores where socks are for sale, and said food and virtually
anything ones wants to buy is available in town. He said people want one stop shopping, and if that's
what they want, they don't want Anacortes, they want Burlington, and they'll still go to Burlington to go to
Costco even if a big box store is built in Anacortes. He raised aesthetic objections to big box stores. He
said a big box store would put existing stores out of business, then fail itself and leave an abandoned
store and parking lot. Mr. Rennis said local business owners care about the community but absentee
business owners don't. He urged councilmembers to vote no on the rezone.
Nick Stowe, 1016 16th Street, said after living in San Juans for a decade he and his partner moved to
Anacortes five years ago and opened their bicycle repair shop downtown three years ago. Mr. Stowe said
he opposed the proposed rezone for several reasons: dividing the retail core is not a good idea, small
businesses would close, and town would lose its character. Mr. Stowe told councilmembers it would be
hasty to decide on this now and asked them to deny the rezone or at least put it off until the 2016
Comprehensive Plan update.
Genevieve Gosselin, 2007 M Avenue, said many people had spoken about convenience and jobs.
Addressing convenience, Ms. Gosselin said she does not know how to drive so she walks and bicycles
around town and still finds all the comforts she needs here. She said the Old Town commercial district is
essentially an outdoor shopping mall. She reported that she grocery shops with her bicycle. Regarding
jobs, Ms. Gosselin said young people need to be able to live here and raise families and that industrial
zoning is crucial for family wage jobs. She said the promise of 90 Fred Meyer jobs means nothing
because that won't allow people to survive and buy a house in Anacortes.
Cynthia Richardson, 315 V Avenue, said Mr. Leming's testimony hit the nail on the head: Anacortes
needs to decide first if it wants a big box store, then if so, decide where is the best place for it. She said
rezoning commercial area to allow larger stores would be the wrong thing to do and that the industrial
area or LM1 out on the highway would be better because the scale of large retail could overwhelm the
scale of existing small businesses whereas it would be appropriately scaled next to industrial buildings
and parking lots. Mrs. Richardson warned that corporate retail strategies change over time and if a big
box store were to close, a large empty building would be a blight in a commercial zone but in an industrial
zone the building could be converted to manufacturing or office uses already allowed in that zone. She
observed that SR20 and R Avenue are designed to accommodate the traffic including trucks that large
retail stores would need. Responding to Mr. Rard's testimony, Mrs. Richardson said a decade ago
Council changed zoning to CM2 on part of MJB's land and MJB still hasn't built anything there. She said
the City has no guarantee that if the current proposed rezone is approved anything will be built on that
land either.
Jane Allyn, 2009 11th Street, quoted the Economic Opportunity Institute that"Good jobs paying a living
wage are essential for economic recovery." She said in Washington State the living wage for a single
adult is $15.28/hour but Fred Meyer typically pays $10.90/hour to cashiers and $13.72/hour to grocery
clerks. She said this isn't a living wage. She added that"living wage" assumes full time employment but
said Fred Meyer is noted for keeping workers below full time. She asked how a Fred Meyer store would
benefit the community if it doesn't bring good jobs but rather contributes to greater poverty and increased
Anacortes City Council Minutes February 3, 2014 6
crime and puts existing stores out of business. Ms. Allyn concluded that if citizens care about their
economic, social and personal health they should deny Fred Meyer a place in Anacortes.
Ron Harris, 1120 17th Street, said he can and does walk to all the shops and it's a kick. He said the real
question is what kind of jobs does Anacortes want, grocery clerk jobs? He said any future vision should
brainstorm what types of businesses will do some good for Anacortes and keep it the kind of community it
is now. He compared Anacortes to Sedro-Woolley which, he said, keeps on keeping on. Mr. Harris said
Anacortes needs a team to continue former City Councilmember Terry Christiansen's efforts to encourage
businesses to come to Anacortes.
No other members of the audience wishing to speak, Mayor Gere invited the proponent to present any
rebuttal.
Jimmy Blais, 510 4th Avenue West, Seattle, introduced Cynthia Hebert of Hebert Research Group. Ms.
Hebert presented the findings of the economic analysis performed by her firm. She said their task was to
look at what is actually happening in Anacortes. Ms. Hebert apologized for mislabeling one table in the
study which suggested that the tax revenue to the City was over$700K per year. She said that is all of
the taxes that accrue to the local governments of all levels and the City's share is actually about$300K.
She said Hebert were tasked to look at the viability of a Fred Meyer-type store at 28th Street and R
Avenue and do a comprehensive analysis of the demographic, income and consumption habits for the
City of Anacortes and its trade area which includes the San Juan Islands and north Whidbey Island
including the effects on wages and employment, impacts of a new store on the local economy, the
importance of one stop shopping, identifying where people actually shop, identifying variables that would
drive demand for a Fred Meyer, determining target markets, and assessing the needs for other
commercial enterprises.
Ms. Hebert described her company's phone survey of 200 people and explained why the survey was
limited to individuals 25-35 years old. She said the margin of error for the survey is 6.9%. Ms. Hebert said
her firm has done thousands of these studies in its 36 years and the results are not terribly different in any
struggling community. She described the secondary research data sources including the U.S. Census,
State Dept. of Revenue, State Dept. of Labor and Claritas. Ms. Hebert then reviewed the figures from the
opportunity gap discovered by the study as described on pages 13-14 of the study including over$88M of
retail leakage in the primary trade area and $132M in the secondary trade area. Ms. Hebert called the
figures "stunning," some of the highest leakage numbers she'd seen in two decades.
Ms. Hebert then reported on the employment section of the report, stating that job creation would be
about 100 permanent jobs. She said a Fred Meyer would enhance retail convergence within the primary
and secondary trade areas: that store would be the anchor to draw dollars from outside. Ms. Hebert
estimated that an Anacortes Fred Meyer would generate 62,871 shopping trips annually and said those
shoppers would likely shop at other local stores while in Anacortes. Ms. Hebert closed by restating and
emphasizing the retail leakage figures. She said those dollars aren't coming into town to support public
services that are supported by sales taxes. Ms. Hebert said grocery prices would go down, quality would
go up and service would improve if the existing Safeway store had real strong competition. Mayor Gere
asked if Internet sales were included in the leakage figures reported by Ms. Hebert. Ms. Hebert said yes.
Mr. Blais returned to the microphone. He told Council that all the facts were before them. He said that
MJB had been in town for 25 years and that its principals were not absentee owners. He said the data
showed that the project would benefit Anacortes, would bring jobs, and would bring tax revenue. Mr. Blais
said the majority of the community wants and needs this.
Mayor Gere invited councilmembers to discuss the process moving forward. Mr. Miller suggested closing
the public comment period in a way that makes sure the record is complete, possibly closing it the
following day. Mr. Archibald agreed with Mr. Miller. Ms. Lovelett had no comments. Mr. Adams suggested
a site visit. Mr. Larsen said councilmembers were welcome to visit the site individually or staff could
schedule and advertise a coordinated site visit. Mrs. Pickett said she would like to allow another day or so
for written comments and that she didn't have a strong opinion on a site visit. Mr. Walters said he liked
Anacortes City Council Minutes February 3, 2014 7
the idea of a site visit and agreed that Council should close comment period, perhaps the following day.
Mr. Johnson suggested keeping the public comment period open for written comments until February 7.
Mr. Johnson said he had questions for Ms. Hebert. He said the Hebert study said it had found that one
stop shopping would not replace the local businesses. Mr. Johnson asked in which cities Hebert had
found that to be true. Ms. Hebert offered Leavenworth and City of Bellevue. Mr. Johnson asked if she
could provide other names to Mr. Larsen after the meeting.
Mr. Walters asked Ms. Hebert which part of the study was based on survey data and which was based on
Claritas. Ms. Hebert said she couldn't say. She said part of the Hebert study is a statistically valid survey
based on random sample of 200 residents of the three market areas. She said the other part of the study
is secondary research based on secondary data sources used to augment and validate what the
statistical survey indicated. Mr. Walters asked if the secondary data sources informed the retail leakage
figures in the study. Ms. Hebert said yes. Mr. Walters observed that only 25-35 year old residents were
surveyed and asked why. Ms. Hebert said that in 20 years when current projects are built those people
would be defining the economy.
Mr. Johnson asked Ms. Hebert how she defined the trade areas of Anacortes and asked how North
Whidbey could be part of the Anacortes trade area. Ms. Hebert said a trade area is where people do their
shopping. She said Oak Harbor and North Whidbey are within a 20 minute drive of Anacortes and the
question was to find out why those shoppers aren't coming here.
Mr. Miller asked Ms. Hebert where the reported retail leakage was going. Ms. Hebert said to Costco and
big box malls. Mr. Miller asked what percentage was leaking to the Internet. Ms. Hebert said 15-20% is
going to the Internet. Mr. Miller observed that the Hebert study said a Fred Meyer in Anacortes would
capture $36M.
Mr. Archibald said the Hebert study looked at how a Fred Meyer could fill the retail gap but didn't look at
other options to fill that gap. Ms. Hebert said this was not a planning study but an economic analysis. Mr.
Archibald said there could be lots of other ways to capture those dollars, as Leavenworth did. Ms. Hebert
said that wasn't her firm's task.
Mr. Walters asked Mr. Blais why this rezone shouldn't be pushed into the 2016 Comprehensive Plan. Mr.
Blais said Fred Meyer told him they have been talking with other land owners in the area including the
tribes, they want a store nearby, and if the rezone gets pushed to 2016 a store couldn't open until 2018 at
the earliest. He said Fred Meyer wants to move quickly, not five years from now.
Ms. Lovelett told Mr. Blais the community is concerned that the proposed rezone isn't project specific and
asked what guarantees MJB can give. Mr. Blais said MJB could give no guarantees at this point in time,
its a chicken and egg game: MJB needs proper zoning to get a store to sign on. Mr. Blais said he couldn't
promise it wouldn't be a Wal-Mart or a Target, he could only give his word that Fred Meyer was the one
on the top of MJB's list that they'd been talking to. Ms. Lovelett asked if MJB would put in writing that if it
were not able to get a Fred Meyer it would retract the zoning request. Mr. Blais said he could take that
idea to the owners of MJB.
Mayor Gere suggested to Council closing the public hearing at the conclusion of the meeting, holding a
site visit, and extending the written comment period until Friday. Mr. Miller observed that he was
agreeable but would like to hold the Council deliberations in front of the same group of citizens who have
been attending the public hearings so he asked to set and publicize the date for those deliberations. At
approximately 9:30 p.m. Mayor Gere closed the public hearing. She said the written record would remain
open until Friday, February 7, 2014 at 5:00 p.m. and that Mr. Larsen would schedule and advertise a site
visit. She announced that Council would deliberate on the matter at its regular meeting on Tuesday,
February 18, 2014.
There being no further business, at approximately 9:30 p.m. the regularly scheduled Anacortes City
Council meeting of February 3, 2014 was adjourned.
Anacortes City Council Minutes February 3, 2014 8