Sumner officials hope Vegas trip pays off in bid to lure new businesses

As the effects of Initiative 747’s 1 percent revenue cap continues to wear on cities around the state, economic development has become a vital part of city efforts and Sumner is no different.

As part of a commercial recruiting effort to attract more stores to the city and increase its tax base, three representatives from Sumner recently attended the International Conference of Shopping Centers convention in Las Vegas.

Armed with a new campaign and favorable demographics, City Administrator John Doan said the trip to Las Vegas to try and recruit new businesses was “absolutely a success,” but only a part of the city’s increased efforts at economic development.

As the cost of living continues to increase 4 to 5 percent each year, the city’s budget is now 80 percent dedicated to salaries and benefits, while other costs continue to increase. Due to I-747, however, the city cannot collect more than 1 percent in total revenue than the previous year.

“That didn’t buy anyone anything new,” Doan said of the approximately $400,000 increase. “That’s just doing what we did the year before.”

That leaves two options to raise more money, according to Doan: New construction or increase the city’s sales tax revenue.

Though Doan said he was not ready to announce any new shops headed this way, Doan said the city’s efforts in Vegas – the first time Sumner attended the convention – were three-fold: Learning about the process, building relationships and establishing a presence among the representatives.

“We demonstrate to them why we’re a good fit,” Doan said of the city’s role at the convention.

Doan and Community Development Paul Rogerson attended the convention at an estimated cost of $3,000 to city coffers. Downtown Association Executive Director Shelly Schlumpf also attended, but the cost of her trip was not paid by the city.

With Sumner’s favorable demographics and available land with easy access to state Route 167, Doan said the city has been talking to any and all large retailers, commonly called “Big Box stores,” including Costco, Wal-Mart, Lowe’s, Home Depot and others.

The challenge, Doan said, is incorporating large, chain retailers – which can bring in hundreds of thousands of dollars each year in sales tax revenue – while not losing the small-town appeal that makes the city such an attractive place to live.

“Sumner’s really lucky in that we have some places in town where we can meet retail needs and preserve the character of the town,” Doan said. “You can create some retail nodes in those areas and retain the character of the town.”

But commercial recruitment is not the only aspect to the city’s economic development plan.

According to Doan, there are five related parts to the job: Finding a balance between housing and jobs, industrial retention, industrial recruitment, commercial retention and commercial recruitment.

“The easiest economic development you can do is keep the people you have,” Doan said of the city’s retention efforts.

Doan said he focuses on making sure the current industrial and commercial tenants are having their needs met by the city, as well as making connections between industry and potential workers, such as local high school and college students.

Doan also said the city’s industrial recruitment efforts involve working with the Pierce County Economic Development Board and keeping connected to hear about moves and changes in the regional economy.

“It’s really about keeping your ear to the ground and seeing what business are expanding,” he said.

The main part of the development, however, is the commercial recruitment. Doan said while at the convention, it was important to show the businesses that the city understands their needs.

For example, Doan said it is important to know what stores require. In the case of an office supply store, Doan said knowing that Office Max tends toward malls while Office Depot builds in strip malls and Staples stands alone, shows business the city understands their needs, something for which members of the local business community have praised the city.

Doan also said it was important to continue to support the efforts of the city’s Downtown Association. The downtown, Doan said, is “the heart and soul of the city.”

While the true benefits of Sumner’s attendance at the convention may not be felt for years, Doan said the city’s presence at the convention will help them in the future.

“I think Sumner’s had a tremendous amount of success with economic development,” Doan said, re-emphasizing the importance to the city’s budget. “You can’t fall asleep.”

Brian Beckley can be reached at 253-826-3260, ext. 5052, or brian.beckley@sumnerreporter.com.

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