Draft Economic Development Strategy

February 12, 2025

City of Vancouver Draft 5-Year Economic Development Strategy

About this Strategy

Vancouver is experiencing significant change. The city is no longer a bedroom community, but an economic driver of the region and state. Vancouver must be responsive to significant increases in population, employment, entrepreneurship, and economic activity. If we are to maintain our competitive advantages long-term and tackle current challenges facing our community – such as growing economic disparities, fewer and fewer accessible livable-wage jobs, or a lack of resources to support small business growth – the City of Vancouver (“City”) must be strategic in its approach to economic development, particularly in a limited resources environment.

This Strategy provides a north star for the City as it invests in economic development outcomes over the next five years. The content of this Strategy was informed by robust data analysis and community engagement, resulting in findings summarized in a Situation Assessment Report.

The Strategy is organized around four Goals the City is focused on achieving:

Establish pathways to accessible quality jobs and reduce barriers to economic opportunity
Create opportunities for wealth creation, especially for historically marginalized communities, by strengthening support for small businesses
Position Vancouver as an inclusive center of innovation and entrepreneurship
Invest in neighborhood commercial districts that result in safe, vibrant, and accessible communities

Each goal is supported by a set of actions – programs, initiatives, and investments – designed to achieve strategic outcomes, and Success Metrics that will help the City measure progress and success.

Over the next five years, the Vancouver City Council and City Staff, led by the Economic Prosperity & Housing Department, will commit resources to the implementation of each Action. This Strategy is purposely biased toward action, and not an exhaustive list of potential ideas. Significant effort went into identifying a priority set of Actions that are achievable to implement over a five-year horizon, even if some are complex or bold. Additionally, the Actions in this Strategy are not meant to be an inflexible to-do list, rather, they serve as priorities that will be reviewed regularly to ensure the work continues to be responsive to community needs.

In implementation, the City is committed to continuing to build partnerships with stakeholder organizations, engage community members, and utilize the most recent data available to design each initiative, program, or investment opportunity. In addition, the role of the City will vary by Action. Certain Actions acknowledge existing efforts by stakeholder organizations and position the City to be a more engaged and committed partner. Where new programs or initiatives are proposed, the City will take a lead role in helping to convene, launch, and align resources, but not necessarily own in the long-term. This Strategy continues the long-held belief that organizations working closest to the communities we are seeking to serve will best drive impact.

Strategic Clarity

Competitive Position Statement: Why Vancouver?

What unique and sustainable value does Vancouver currently deliver to our employers, small businesses, entrepreneurs, and workforce? What must be protected going forward?

Situated at the doorstep of some of the most stunning natural beauty and outdoor recreation opportunities in the United States, Vancouver offers access to big city amenities with the convenience of a smaller, more nimble and connected community. For residents, workers, businesses, and entrepreneurs, Vancouver offers:

An expanding economy with growing market opportunities for entrepreneurs, small businesses, and startups to scale.
A diversity of competitive and growing industries, creating pathways to economic opportunity and stability.
A favorable business climate with a growing talent base, competitive costs, and a predictable regulatory environment that is attractive to new investment.
Access to major West Coast metropolitan areas and critical global markets with a world-class international airport, convenient highway network, deep-water port, and established rail infrastructure.
A strong sustainability ethos with climate advantages that position the community to navigate current and future climate change and natural resource challenges.
A high quality of life with strong K-12 schools, a post-secondary education and workforce system that creates pathways to quality jobs, regional cost advantages, accessible transportation options, and the availability of top-notch medical care.
A supportive and collaborative community with a shared interest and strong commitment to uplifting people.

Long-Term Economic Vision

What is the ideal future state – 20 years from now – that we are trying to create for Vancouver as a community and an economy?

Vancouver is an inclusive community with an equitable, competitive, innovative, economy.

We envision a community where:

Growth is sustained, creating ongoing economic opportunity for workers, businesses, and entrepreneurs
Persistent economic disparities experienced by historically marginalized communities are closed and the city’s median household incomes exceeds the regional average
Individuals and families, regardless of background or identity, have opportunities to create wealth
Jobs paying livable-wages are accessible and available across a diversity of industries
Entrepreneurs, innovators, and risk-takers are celebrated and supported
Small businesses are thriving and able to access the resources they need to scale
Neighborhood business districts are safe, vibrant, and welcoming

Strategic Focus and Action

The following section outlines Vancouver’s economic development goals, success metrics and actions. Definitions and a description of each is included below.

Goals

What high level outcomes must Vancouver achieve over the five-year strategy horizon?

Success Metrics

How will we know when we are successful? What will we measure?

Actions

What finite-duration, discretionary programs, initiatives, and investments will we commit to implementing?

Goal 1: Establish pathways to accessible quality jobs and reduce barriers to economic opportunity

Success metrics include:

Median household income compared to the regional average
Percent of jobs created resulting from City of Vancouver and partner programs that pay at or above Vancouver’s living wage standards
Percent of total jobs in Vancouver occupied by Vancouver residents

Goal 1, Action A: Advance career opportunities in the trades

Many trade occupations and careers are attainable without a four-year college degree, but still pay livable wages. These same occupations are currently experiencing a labor shortage. The City will partner with existing workforce development, K-12 education, post-secondary education, and industry stakeholders to help organize and amplify job fairs, develop marketing campaigns to better promote career opportunities, and partner with local construction and trade organizations to support apprentice and internship opportunities. These efforts will focus on traditional trades-dependent construction occupations, but also sectors such as clean tech, power and energy distribution, telecommunications, and advanced manufacturing where skilled trades workers are in high demand.

Potential Partners include: Clark College, Washington State University-Vancouver, Workforce Southwest WA, National Association of Minority Contractors-Washington Chapter, Southwest Washington Contractors Association, Building Industry Association of Clark County, other local non-profit construction and trade support organizations, and local K-12 school districts

Goal 1, Action B: Support growth of emerging MBE/WBE/SBE construction and trades firms

Construction- and trades-related businesses are experiencing a shortage of workers due to an aging workforce, limited entry pathways, and declining interest among younger generations. Additionally, systemic barriers, including access to training and resources, have prevented business owners from underrepresented communities from participating, exacerbating the labor gap. The City will work with local small business technical assistance partners to develop shared goals, align resources and programs, and create a more connected ecosystem to incubate and nurture early-stage businesses, particularly Washington State certified minority-owned business enterprises (MBE), women-owned business enterprises (WME), and small business enterprises (SBE) firms, to increase the number of local construction and trades companies.

Potential Partners include: The National Association of Minority Contractors-Washington Chapter, Washington Apex Accelerator, local small business technical assistance providers, and local government procurement offices

Goal 1, Action C: Develop an Investment Toolbox to support the recruitment and expansion of businesses offering access to quality jobs

Like many communities, employment growth in Vancouver is increasingly concentrated in high-wage and low-wage industries, resulting in the hollowing out of our traditional middle-class. The City will work with economic development and workforce development partners to strategically target business recruitment, retention, and expansion projects offering accessible livable-wages jobs that meet the region's adopted Quality Jobs Standards. A key component of this work will be to create an Investment Toolbox for job-focused development that includes City master-planning, property acquisition, redevelopment, permitting, and infrastructure investment policies, services, and resources.

Potential Partners include: The Columbia River Economic Development Council, Port of Vancouver, Columbia-Willamette Workforce Collaborative and the Center City Redevelopment Authority

Goal 1, Action D: Incentivize employers to invest in childcare options, particularly for lower-income workers

The lack of affordable childcare in Vancouver is a barrier for employers to attract and retain talent and for entrepreneurs seeking to launch a small business. Investing in childcare also aligns with broader community priorities, such as reducing poverty, improving public health outcomes, and improving education outcomes. It is critical that local employers are part of the solution by offering onsite childcare or investing in community childcare options. The City will research and identify federal and state resources, explore the feasibility of local policy, permitting and code updates, tax breaks, and real estate/redevelopment community benefit agreements to encourage public-private childcare solutions.

Potential Partners include: Columbia River Economic Development Council, Greater Vancouver Chamber of Commerce, Workforce Southwest WA, local employers, local community-based organizations and state and local childcare advocacy organizations

Goal 2: Create opportunities for wealth creation, especially for historically marginalized communities, by strengthening support for small businesses

Success Metrics include:

Number of new business starts in Vancouver whose owners are from historically marginalized communities (note: if demographic data is not available from official Business Licenses, the City of Vancouver will collect optional data specific to programs it directly manages or partner organization programs it supports)
Number of new businesses starts in Vancouver in operation past the first two years
Annual sales/revenues of small businesses whose owners are from historically marginalized communities supported by City of Vancouver or contracted partner programs (Note: the City of Vancouver will collect optional demographic data specific to programs it directly manages or partner organization programs it supports)

Goal 2, Action A: Enhance product-to-market opportunities for local consumer product entrepreneurs

Product placement with established brick and mortar, and online retailers, can help boost sales and brand reputation. Robust product-to-market programs provide critical support such as market research, packaging design, distribution strategies, and access to retail partnerships, helping local consumer product entrepreneurs navigate the complexities of bringing products to market. The City will partner with local small business support organizations to launch new, or expand an existing, product-to-market programs, evaluate availability of co-packing facilities, and work with larger retailers to facilitate retail partnerships.

Potential Partners include: U.S. Small Business Development Center, Washington State University-Vancouver Culinary Institute, Vancouver Farmer’s Market, Fourth Plain Commissary Kitchen, Oregon State University – Food Innovation Center (Portland), Portland Community College – Recipe to Market Program, local small business technical assistance providers and established local retailers (brick and mortar, online)

Goal 2, Action B: Connect local small businesses to City of Vancouver public contracting opportunities

The City of Vancouver seeks to ensure equitable opportunities for Washington State certified minority-owned business enterprises (MBE), woman-owned business enterprises (WBE), and small business enterprises (SBE) competing for construction, professional services, goods and other services contracts. While the City spends most of its procurement dollars with businesses in the region, about 9% of City of Vancouver contract dollars go to MBE/WBE companies. This action will seek to align the City's existing small business development efforts with opportunities for federal, state, and local government procurement opportunities through public contracting events, awareness campaigns, and “readiness” assessment services.

Potential Partners include: Washington Apex Accelerator, local small business technical assistance providers and public-sector procurement offices

Goal 2, Action C: Establish a citywide small business revolving loan fund

Access to capital remains a significant challenge to most small businesses. Small businesses are vital to the health of Vancouver’s economy, ranging from main street retail establishments to local restaurants, construction businesses, small manufacturers, and software firms. These small businesses provide income for families and create jobs for residents. For many small business owners, particularly those from marginalized populations, their service or product is marketable, but operating capital is out of reach. This issue is even more acute for early-stage businesses that have difficulty qualifying for traditional loans from banks or credit unions. The City will help capitalize and launch a micro-enterprise revolving loan fund to help improve access to capital for early-stage small businesses, ensuring that they remain a critical component of Vancouver’s economy.

Potential Partners include: Local and regional community development finance institutions, local small business technical assistance providers and local small businesses

Goal 3: Position Vancouver as an inclusive center of innovation and entrepreneurship

Success Metrics include:

Number of jobs created in the region’s innovation-centered industry clusters (computers and electronics, software, clean tech, technology enhanced manufacturing, life sciences)
Number and amount of local startup investment deals (angel, seed, venture capital)
Number and amount of successful startup exits (IPO, M&A)

Goal 3, Action A: Develop a storytelling and marketing campaign to position Vancouver as a center of innovation

The economic success of Vancouver as an entrepreneurship hub is not fully known within the region or nationally. An opportunity exists to help Vancouver transition from a “best kept secret” status to an acknowledged driver of innovation. Vancouver is home to a nascent startup community and several nationally competitive industry clusters, such as computer & electronics, software, clean tech, life sciences, and aerospace/uncrewed systems. A targeted storytelling and marketing campaign will highlight Vancouver's business-friendly policies, affordable quality of life, and innovation-based sectors. By showcasing success stories and emphasizing its strategic location in the Pacific Northwest, Vancouver can elevate its reputation, spur economic growth, and establish itself as a dynamic and forward-thinking city for businesses, entrepreneurs, investors and talent.

Potential Partners include: Columbia River Economic Development Council, Washington State University-Vancouver, local and regional startup support organizations, industry cluster leaders, local entrepreneurs, experienced marketing and communications stakeholders

Goal 3, Action B: Support and host startup networking, pitch, and investment events

An important step in positioning Vancouver as an innovation hub is to cultivate a vibrant ecosystem and connect local entrepreneurs with critical resources. This City will take a lead role in bringing startup pitch, networking, and investment events to Vancouver to provide a platform for startups to showcase their ideas, gain valuable feedback, and attract funding from investors. These events will also be positioned to foster collaboration, mentorship, and knowledge-sharing among entrepreneurs, industry leaders, and community stakeholders.

Potential Partners include: Local/regional startup support organizations, industry cluster leaders, local entrepreneurs and startup investors

Goal 3, Action C: Help Launch a local early-stage startup investment fund

Access to capital for high-growth startups is critical to building a competitive entrepreneurial ecosystem. Unfortunately, early-stage investors mostly invest in major startup hubs like San Francisco, Seattle, Austin, and New York City, making it difficult for entrepreneurs in smaller markets to attract the investment capital they need to grow. The City will explore successful investment fund models focused on early-stage capital (pre-seed and seed) that also provide services such as startup mentoring, coaching, and business planning to better position Vancouver to attract and retain talented entrepreneurs, foster local economic development, and leverage the city's strategic location near major technology and innovation markets in the Pacific Northwest.

Potential Partners include: Local and regional startup support organizations, local entrepreneurs and startup investors

Goal 4: Invest in neighborhood commercial districts that result in safe, vibrant, and accessible communities

Success Metrics include:

Number of vacant or underutilized commercial property in priority neighborhood commercial districts
Number of jobs in priority neighborhood commercial districts
Access to essential neighborhood services (food, housing, transportation, childcare, medical, etc.) near priority neighborhood commercial districts

Goal 4, Action A: Establish a Neighborhood Business District Improvement Program

Neighborhood business districts serve as hubs for essential goods and services, create local jobs, and foster a sense of place and community for residents. These districts support small businesses, which often reflect the unique character and culture of the community, enhancing the area's identity and vibrancy. However, some existing neighborhood commercial areas struggle with property vacancy or underutilization, have minimal access to essential goods and services, provide little entertainment options, or are challenged by persistent blight and public safety issues. The City will seek to create a formal Neighborhood Business District Improvement Program, including identifying neighborhood-level funding options, such as Business Improvement Areas, to resource services such as landscaping, security improvements, public realm and district beautification investments, art installations, shop local campaigns, or e public events, entertainment and retail activities.

Potential Partners include: Neighborhood associations, business district organizations, chambers of commerce, small businesses and property owners

Goal 4, Action B: Leverage City-controlled real estate assets or redevelopment projects to provide affordable commercial solutions

For many entrepreneurs and small businesses, current market-rate commercial leases are too expensive, creating a barrier to business growth, limiting economic diversity, and often leading to an increase in underutilized properties. The City will evaluate opportunities to leverage existing City-owned real estate assets or redevelopment projects to offer affordable commercial opportunities for qualified businesses. A key component of this effort would also include the researching best-practices related to community-ownership or co-op real estate models.

Potential Partners include: Center City Redevelopment Authority, partner real estate developers, small business technical assistance providers and local small businesses