City of Bellevue
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A lucky CITY WITH GREAT VISION
Diverse workforce and innovative city planning attracts global businesses with swagger
On the outskirts of Seattle is a thriving suburb, a high-tech city in its own right. Bordered by two lakes that run for miles along the beautiful mountains, the population is expected to swell by 200,000 in 20 years. Currently at 120,600 people, Bellevue has become one of most diverse cities in the country. About 30 percent are non-Caucasian with an overlapping 41 percent being foreign-born. That figure is expected to hit 50 percent in 10 years, according to Robert Derrick, the director of economic development.
Derrick sees his job as two-fold: one focus is to create and fill spaces with successful businesses through recruitment, expansion and partnerships for small business development. “Filling the space is a waste if they aren’t successful,” he says, adding 60 percent are smaller businesses, which is also where the employment and growth is. But Derrick also has another focus on his mind: diversity. “We try to promote Bellevue as an area of international trade. Be it North American or foreign-based companies, we want to makes sure that they are doing business abroad, if they want to,” he says.
International swagger
City council members have travelled abroad, before budget restrictions, mostly to Asian-based countries, but have also been in recent discussions with the international trade groups. “We had the Korean government come to us two years ago and state that six months later they would lift all restrictions on the private export of capital from south Korea,” says Derrick. In fact, Bellevue had been targeted as a city where they wanted to see investments occur. Bellevue is seen as a bright spot because of its city life, quality of businesses and its welcoming spirit.
Other international trade partners are showing interest. Recently, the Indian government announced its plans to build a new consulate in Bellevue. Because of so many Indian-born Bellevue residents working in the technology field, it seemed like the city was a natural choice. But the city’s ground work for economic development is not something that instantly translates into an ROI, however. “It is a long-term marketing and promotion work, so most of the work I’m doing to promote international trade won’t pay off until I leave the city,” says Derrick.
A changing, diverse workforce
Having worked in Bellevue during tough times including in the 1980s, Derrick says he’s noticed how the skyline has changed over the years, as has the face of the city. “The education level in Bellevue is one of the highest in the whole country, 60 percent of the people here over the age of 25 have at least a college degree,” says Derrick. While Bellevue has always had high education levels, he says it’s really zoomed up because of what he called “the Microsoft factor,” so-called by locals because the high-tech giant’s headquarters are located next door in Redmond.
Something for everyone
Known as a hub for high-tech types in the surrounding area, there is something for everyone. From aerospace, clean technology and power utility, to financial services, interactive new media and the telecomm industry, Bellevue is attracting a wide range of people from the trades to professionals. “There are a lot of companies that come here because they want to be close to Microsoft. For instance, a major Chinese mobile manufacturer is here. Telecommunications is pretty big,” explains Derrick.
Good strategy necessary to compete without tax incentives
Bellevue is an example of a city that doesn’t have all the investment tools to use because there are some limitations on its state constitution. “I can’t do direct investments in land development projects; I can’t lend credit or give tax increment financing, which is a big tool here in the U.S. I have trouble competing with some other cities in other states because they can offer some cash and tax incentives,” admits Derrick. On the other hand, he says, companies are attracted to the city without subsidies and are successful without them. “I think that is a bigger selling point [as it says] you have good business practices, good corporate leadership and management; there’s a lot of companies that like saying that,” says Derrick.
Investing time and energy lead to city’s success
Moreover, under Derrick’s leadership in economic development, the City of Bellevue invested a great deal of time and energy into planning over the years, going as far back as the 1980s. Nevertheless, he attributes the city’s success mostly to having a fully engaged city council, city managers and public works director whom all worked cohesively and collaboratively with the multiple business trade groups. In respects to urban planning, he says it was important to protect the single-family neighborhoods. “We’ve made sure there are no zoning encroachments, sidewalks repaired, street signs, upgraded neighborhoods—all key factors in attracting people to live and work here,” explains Derrick. “I’ve worked here in the early 1980s, we did a lot of planning for the downtown zoning and what has developed here really reflects that.“
Microsoft and the role of luck
Interestingly, in the power point presentations that Derrick gives, he has one slide that reads: Microsoft and the role of luck. “I’m a believer in luck, but I’m also a believer that you set yourself up for lucky things to happen to you,” he says. Bellevue has had success with solid city planning for land use and funding for capital improvements for various infrastructure projects. “We also happen to have Microsoft next door to us, which has frankly, driven the economy here for six years. If Microsoft weren’t here, things would look very different,” he tells.
Currently, the city is investing hundreds of millions of dollars on street infrastructure and traffic improvements, utilities, as well as putting down tech-tech infrastructure and purchasing land for open space. “[Microsoft] estimates for every job it creates, four additional jobs in the local economy are created in retail and support services. It will also drive residential occupancy as well,” he says.
High-density development was key in promoting growth
Back in the 2000 boom and bust, Bellevue got hit hard just like everybody else. “Our rates were something like 30 percent office space vacancy, which is disastrous here. When the national economy disintegrated however, Bellevue pushed forward with commercial planning as done in the 1980s, setting up the scene for high-density developments to occur. “We’re the only city outside of Seattle to accommodate 50 storey-buildings, so that provides an alternative to high-density office and residential space,” tells Derrick. Last year, approximately 3 million sq. feet were built in the city’s downtown and surrounding area largely due to Microsoft, Expedia, Eddie Bower, and many others. “Around that time we had about 4,000 condos and apartments built and 3 million sq. feet of office space added, as well as a major shopping center opened with high-end luxury shops like Jimmy Choo,” says Derrick.
Build it, and they will come
When it comes to urban planning, he believes city planners were ahead of the curve in respects to high-density developments. “We did look at Europe in that regard, especially at urban designers and examples. But I think what happened in 1980 is that those all-stars lined up: city councilors had a very definite vision,” he says, referring to the move away from low-density to an urban city that is high-density. “Although we argued over the details, everyone agreed on the big vision and policy direction, in 1981, which was the biggest hurdle. It all took off after that.”
OVERVIEW OF CURRENT PROJECTS
- The state highway department is getting one of the government stimulus grants to improve a major interchange in Bellevue.
- Sound Transit East Link has the green light to go ahead with the LRT from Seattle to Bellevue’s downtown core as well as
Microsoft’s campus. The $17-billion project will be running by 2020.
- Another government entity, Kim County, will build a rapid bus transit which will augment the light rail and speed up bus transit service.
- Discussions between some developers and Microsoft are underway about adding a new headquartered office space for the Microsoft. Bellevue already has 7,500 employees working on the MS campus, which could double or triple that number. “A good economic boost for us,” says Derrick
Diverse workforce and innovative city planning attracts global businesses with swagger
On the outskirts of Seattle is a thriving suburb, a high-tech city in its own right. Bordered by two lakes that run for miles along the beautiful mountains, the population is expected to swell by 200,000 in 20 years. Currently at 120,600 people, Bellevue has become one of most diverse cities in the country. About 30 percent are non-Caucasian with an overlapping 41 percent being foreign-born. That figure is expected to hit 50 percent in 10 years, according to Robert Derrick, the director of economic development.
Derrick sees his job as two-fold: one focus is to create and fill spaces with successful businesses through recruitment, expansion and partnerships for small business development. “Filling the space is a waste if they aren’t successful,” he says, adding 60 percent are smaller businesses, which is also where the employment and growth is. But Derrick also has another focus on his mind: diversity. “We try to promote Bellevue as an area of international trade. Be it North American or foreign-based companies, we want to makes sure that they are doing business abroad, if they want to,” he says.
International swagger
City council members have travelled abroad, before budget restrictions, mostly to Asian-based countries, but have also been in recent discussions with the international trade groups. “We had the Korean government come to us two years ago and state that six months later they would lift all restrictions on the private export of capital from south Korea,” says Derrick. In fact, Bellevue had been targeted as a city where they wanted to see investments occur. Bellevue is seen as a bright spot because of its city life, quality of businesses and its welcoming spirit.
Other international trade partners are showing interest. Recently, the Indian government announced its plans to build a new consulate in Bellevue. Because of so many Indian-born Bellevue residents working in the technology field, it seemed like the city was a natural choice. But the city’s ground work for economic development is not something that instantly translates into an ROI, however. “It is a long-term marketing and promotion work, so most of the work I’m doing to promote international trade won’t pay off until I leave the city,” says Derrick.
A changing, diverse workforce
Having worked in Bellevue during tough times including in the 1980s, Derrick says he’s noticed how the skyline has changed over the years, as has the face of the city. “The education level in Bellevue is one of the highest in the whole country, 60 percent of the people here over the age of 25 have at least a college degree,” says Derrick. While Bellevue has always had high education levels, he says it’s really zoomed up because of what he called “the Microsoft factor,” so-called by locals because the high-tech giant’s headquarters are located next door in Redmond.
Something for everyone
Known as a hub for high-tech types in the surrounding area, there is something for everyone. From aerospace, clean technology and power utility, to financial services, interactive new media and the telecomm industry, Bellevue is attracting a wide range of people from the trades to professionals. “There are a lot of companies that come here because they want to be close to Microsoft. For instance, a major Chinese mobile manufacturer is here. Telecommunications is pretty big,” explains Derrick.
Good strategy necessary to compete without tax incentives
Bellevue is an example of a city that doesn’t have all the investment tools to use because there are some limitations on its state constitution. “I can’t do direct investments in land development projects; I can’t lend credit or give tax increment financing, which is a big tool here in the U.S. I have trouble competing with some other cities in other states because they can offer some cash and tax incentives,” admits Derrick. On the other hand, he says, companies are attracted to the city without subsidies and are successful without them. “I think that is a bigger selling point [as it says] you have good business practices, good corporate leadership and management; there’s a lot of companies that like saying that,” says Derrick.
Investing time and energy lead to city’s success
Moreover, under Derrick’s leadership in economic development, the City of Bellevue invested a great deal of time and energy into planning over the years, going as far back as the 1980s. Nevertheless, he attributes the city’s success mostly to having a fully engaged city council, city managers and public works director whom all worked cohesively and collaboratively with the multiple business trade groups. In respects to urban planning, he says it was important to protect the single-family neighborhoods. “We’ve made sure there are no zoning encroachments, sidewalks repaired, street signs, upgraded neighborhoods—all key factors in attracting people to live and work here,” explains Derrick. “I’ve worked here in the early 1980s, we did a lot of planning for the downtown zoning and what has developed here really reflects that.“
Microsoft and the role of luck
Interestingly, in the power point presentations that Derrick gives, he has one slide that reads: Microsoft and the role of luck. “I’m a believer in luck, but I’m also a believer that you set yourself up for lucky things to happen to you,” he says. Bellevue has had success with solid city planning for land use and funding for capital improvements for various infrastructure projects. “We also happen to have Microsoft next door to us, which has frankly, driven the economy here for six years. If Microsoft weren’t here, things would look very different,” he tells.
Currently, the city is investing hundreds of millions of dollars on street infrastructure and traffic improvements, utilities, as well as putting down tech-tech infrastructure and purchasing land for open space. “[Microsoft] estimates for every job it creates, four additional jobs in the local economy are created in retail and support services. It will also drive residential occupancy as well,” he says.
High-density development was key in promoting growth
Back in the 2000 boom and bust, Bellevue got hit hard just like everybody else. “Our rates were something like 30 percent office space vacancy, which is disastrous here. When the national economy disintegrated however, Bellevue pushed forward with commercial planning as done in the 1980s, setting up the scene for high-density developments to occur. “We’re the only city outside of Seattle to accommodate 50 storey-buildings, so that provides an alternative to high-density office and residential space,” tells Derrick. Last year, approximately 3 million sq. feet were built in the city’s downtown and surrounding area largely due to Microsoft, Expedia, Eddie Bower, and many others. “Around that time we had about 4,000 condos and apartments built and 3 million sq. feet of office space added, as well as a major shopping center opened with high-end luxury shops like Jimmy Choo,” says Derrick.
Build it, and they will come
When it comes to urban planning, he believes city planners were ahead of the curve in respects to high-density developments. “We did look at Europe in that regard, especially at urban designers and examples. But I think what happened in 1980 is that those all-stars lined up: city councilors had a very definite vision,” he says, referring to the move away from low-density to an urban city that is high-density. “Although we argued over the details, everyone agreed on the big vision and policy direction, in 1981, which was the biggest hurdle. It all took off after that.”
OVERVIEW OF CURRENT PROJECTS
- The state highway department is getting one of the government stimulus grants to improve a major interchange in Bellevue.
- Sound Transit East Link has the green light to go ahead with the LRT from Seattle to Bellevue’s downtown core as well as
Microsoft’s campus. The $17-billion project will be running by 2020.
- Another government entity, Kim County, will build a rapid bus transit which will augment the light rail and speed up bus transit service.
- Discussions between some developers and Microsoft are underway about adding a new headquartered office space for the Microsoft. Bellevue already has 7,500 employees working on the MS campus, which could double or triple that number. “A good economic boost for us,” says Derrick
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