Help wanted: business recruiter

The Cheney Planning Commission has forwarded a recommendation to the City Council regarding how economic development is done in the city.

At its June 13 meeting, the commission asked council to consider creating and filling an in-house economic development position, or contract with an outside individual or firm to help bring business to the community.

The commission made its recommendation after a presentation about the current state of the city economy as part of its comprehensive plan review process. In the presentation, senior planner Brett Lucas noted Cheney, is closely tied to the fortunes of Spokane County through “economic, social and political linkages.” The city’s growth and economic development was also becoming more closely aligned with industrialization on the West Plains.

Cheney’s population has out paced the county and state’s growth rates, increasing from 8,238 people in 1990 to 11,251 in 2013. Cheney has more residents ages 20 – 29 (40 percent) than either the county (19 percent) or state (16 percent), while garnering a lower workforce participation rate than either entity — outcomes related to being the home to Eastern Washington University.

Cheney lags behind both the county and state averages in household income, according to information from the American Community Survey, with median household income two-thirds of the county and one-half of the state medians in 1999. Cheney’s share of households with incomes of $10,000 or less is also greater than state and county averages, again a likely factor of being a “college town.”

When it comes to taxable retail sales, Cheney fares OK compared to other cities in the county when population is taken into consideration, accounting for 2 percent of the county’s overall $8.5 billion in taxable retail sales. Trade area analysis indicates city businesses do relatively well in retaining residents and people living nearby outside the city as customers and not losing them to other jurisdictions.

Cheney has 302 employers, averaging almost 11 employees per firm. Only three of those employers exceed 100 employees and only EWU has more than 1,000.

Economic projections estimate the county could see 38,741 new jobs by 2024. With 2.3 percent of the population, this would equate to 902 new jobs in Cheney.

Where those jobs would be taking place was the source of questions from Planning Commission members. Most new businesses have been locating in the city’s north end, and Lucas added that Cheney’s population isn’t large enough to attract big box store retailers or other amenities such as chain restaurants that serve as a draw to the city.

Lucas noted there is a lot of online business analysis information useful for marketing the city, prompting Commissioner Rick Mount to ask who does that task.

“We do some,” Lucas replied.

The city has used in-house and externally contracted individuals in the past to try to lure prospective businesses to the city. Those relationships have been terminated due to budget constraints.

“We’re working with GSI to get more businesses in,” City Administrator Mark Schuller said in reference to the region’s economic development organization, Greater Spokane Incorporated.

Schuller added that he and Mayor Tom Trulove have been talking with the organization on increasing efforts to better market the city, especially the Commerce and Industrial Park.

Part of the issue is transportation, Lucas said, noting businesses seek to locate close to major transportation hubs, such as interstate freeways. Proximity to Interstate 90 has helped West Plains’ industrialization, while lack of easy access has hurt Cheney.

Commissioner Dan Turbeville pointed out that at one time, Cheney was located on a main state route, U.S. Highway 10. When the interstate was built in the 1960s, Turbeville said he heard it could have run closer to the city, but Cheney officials declined the option.

“That’s what happened to Cheney,” he added.

John McCallum can be reached at [email protected].