Business owners who responded to a survey sent out in the fall of 2012, cite transportation as the biggest hurdle to flourishing in Issaquah.
The relatively new city Economic Development Department sent the survey to 2,300 Issaquah businesses. It had 271 responses, or 12 percent of those sent out.
Overall, 73 percent of the businesses that responded rated Issaquah as “good” or “excellent” as far as the business climate is concerned.
Of the businesses responding, 21 percent were professional/technical, 18 percent were in health care, 10 percent were retail establishments and 6 percent were in food services.
Of those who responded, 83 percent were located exclusively in Issaquah, whereas 14 percent belonged to a chain with other locations. Most acknowledged that their businesses have had a slow but steady recovery since the recession began in 2008.
“Flat is the new up, so as long as we are flat we are happy with that,” said one anonymous business owner.
Seventy-two percent of the respondents declared their businesses stable, while 47 percent were planning to expand.
But transportation was a big thorn in the side for many. Swedish Hospital stated there is no bus service to the Highlands for its early and weekend shift workers, so many have resorted to sleeping on campus so they get to work on time. Yet 23 percent said the biggest advantage to doing business in Issaquah was accessibility, i.e. access off of I-90, followed by demographics and the fact that Issaquah is a close-knit community. Downtown parking was mentioned as a problem.
Signage was also a bone of contention, because it is very limiting. Temporary signs are too restrictive, only allowed to stay up for a short period of time, and multiple signs are not allowed. For example, if a business wanted to advertise that it carries a specific brand, that’s not allowed.
“Some areas are different from others, because they were grandfathered,” said Andrea Lehner, manager of the Economic Development Department for the city.
City regulations and space to expand were problematic as well. Ten percent of the respondents are planning to close or relocate outside of Issaquah over the next five years. Lack of marketing assistance and the need for better infrastructure were the two most common reasons for wanting to move.
The cost of B&O taxes wasn’t an issue, but the process was too onerous for at least six percent of the respondents.
Cindy Creel owns Gypsy Specs Traveling Optician. She is an optician, who comes to you with a wide variety of frames. She said trying to pay her B&O taxes was trying because of the odd hours for doing so at city hall. Also, she said she needed assistance filling out the forms. A Member of the Issaquah Chamber of Commerce, Creel said she thought the survey was great and she does enjoy doing business in Issaquah.
Although her business is mobile, she lives in Issaquah and serves clients primarily in Issaquah and Sammamish. She has been an optician for over 16 years.
Employers are having difficulty recruiting new hires because of transportation, but also due to lack of affordable and work-force housing. A large majority, 70 percent of employees, earn under $60,000 annually, with 78 percent of those working in services and retail. Housing affordability is typically defined as 25 to 33 percent of a total household budget. With the average single family home price in Issaquah at $451,500 and median rent of $1,750, an Issaquah worker making $60,000 can typically afford housing costs of $1,250 to $1,666 per month. Those making less than $60,000, don’t stand a chance of living in the city they work in.
Employee training is also needed, with businesses expressing interest in the yet to be built Bellevue College Issaquah offering programs that complement local needs.
