1. Snoqualmie Retail Market Analysis Presented July 2, 2007 City of Snoqualmie

2. Agenda HISTORY AND VISION Where have we been? Where are we now? Where do we want to go? RETAIL MARKET ANALYSIS Economic Research Associates (ERA) Study and Recommendations Potential Retail in Snoqualmie Ridge (SR) Business Park QUESTIONS __________________________________________________________

3. History and Vision WHERE HAVE WE BEEN? 1998 = population 1,600 Impacts: Growth in Issaquah and North Bend Snoqualmie Ridge to reflect historic Snoqualmie –Pedestrian focus, scale and location –Sense of place: mom & pop stores –No big box retail –Local, not regional __________________________________________________________

4. WHERE ARE WE NOW? 2007: SR Phase II construction well underway Current population = 8,700 Improve regional profile Future retail/resident demand Diversify city revenue sources Central vs. Dispersed retail __________________________________________________________ History and Vision

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7. WHERE ARE WE GOING? 2010-2012 = population 12,000+ Need for additional retail shops and services to support residential and employment growth Limited Opportunities Freeway – too isolated for neighborhood retail –Mill site –Downtown oFloodway/floodplain oIsolated from primary residential and employment population oServes more tourism focus History and Vision

8. Neighborhood Retail Demand Analysis 2006 STUDY SCOPE Analyze Snoqualmie Ridge neighborhood center retail demand Compare retail supply and demand balance through 2022 Determine how much additional neighborhood retail land is needed in this area to meet demand from projected growth APPROACH Demand analysis based on population and household income Population projections for city and UGA as market area Estimated per capita retail sales as $11,265 in 2005 dollars Projected total retail sales, then applied expected market capture rate for Snoqualmie Ridge location Similar analysis done for employee generated demand Sales demand converted to supportable square footage __________________________________________________________

9. Neighborhood Retail Demand Analysis 2006 CONCLUSIONS Potential retail sales in Snoqualmie Ridge neighborhood center is estimated to more than double by 2022 (from resident and employee demand) >> from $15.4 million in 2006 to $39.6 million in 2022 Demand will balance supply until approx. 2010 (with Salish hotel project) As demand grows beyond 2010, additional retail space will be needed By 2022, demand will exceed supply by 60-70,000 square feet - or 7 acres Current drug and variety store demand is 10-12,000 square feet; grows to 27,000 square feet by 2022

10. CONCLUSIONS Results indicate a clear need for additional neighborhood retail acreage in Snoqualmie Ridge Source of current demand for Snoqualmie Ridge retail: 66% residents, 13 % employees and 21% visitors By 2022, source of demand shifts to 71% residents, 13 % employees and 16% visitors OTHER DEMAND CONSIDERATIONS Growth occurring more rapidly that anticipated SRI nearing build-out – last 28 units under construction To date, approvals granted or pending for 72% of units in SRII - 1,325 units 120 units in Kimball Creek Village expected next year Additional 3,700 residents before 2009; another 1,500 by 2010 (ERA study assumed build-out of SR II in 2011-2012) Neighborhood Retail Demand Analysis 2006

11. STUDY RECOMMENDATIONS Parcels S-11 and S-11A in SRII are currently designated for neighborhood retail uses; study recommends retaining retail designation, BUT Location and isolation of these parcels from the primary neighborhood center retail area makes them marginal for future retail uses “The Snoqualmie Ridge Neighborhood Center would be stronger overall if all of its smaller retail shops, restaurants and services could benefit from being within walking distance of the grocery store and future drug store anchors.” Non-retail uses should be relocated to parcels S-11 and S-11A in SRII to allow the retail center to become a stronger shopping destination Should over-zone for retail land supply by 1.5–2 times demand - avoid near monopoly conditions that lead to higher land prices Neighborhood Retail Demand Analysis 2006

12. NEIGHBORHOOD RETAIL DEMAND SUMMARY Demand for additional 7 acres between 2010 and 2022 Additional retail should be located within walking distance of existing retail to maintain concentration and create strong shopping destination Over-zoning for retail land supply as recommended would require 10.5–14 acres City’s 2006 demographic survey – residents indicated what is needed most in Snoqualmie are more restaurants (24.8%) and more retail stores (19.7%) Demographic survey and 2007 city survey indicate one of two top priorities for city planning is economic development __________________________________________________________ Neighborhood Retail Demand Analysis 2006

13. BUSINESS PARK LOTS 11 and 12 Lots 11 and 12 would allow for expansion of existing retail area in one central location Supports vision for pedestrian-oriented, walkable community Retail uses currently are not allowed in the Snoqualmie Ridge Business Park The City Council may reconsider an amendment to the Business Park development standards to expand the allowable uses for lots 11 and 12 to include neighborhood retail shops and services Such amendment would not require or guarantee retail uses be developed Without such amendment, potential for lost opportunity as Business Park lots cannot be marketed for retail uses Lots 11 and 12 could be developed for office or light industrial uses, eliminating potential for future expansion of the retail center Neighborhood Retail Demand Analysis 2006

14. Conclusion: Snoqualmie Retail Market Analysis Questions & Answers CONTACTS Matt Larson, Mayor of Snoqualmie, 425-888-1555 mlarson@ci.snoqualmie.wa.us Bob Cole, Economic Development Specialist, 425-888-1555 rcole@ci.snoqualmie.wa.us __________________________________________________________