Members of the Greater Federal Way Chamber of Commerce spoke against the city’s Business District Associations proposal at a Council meeting Tuesday night.

Chamber President and CEO Rebecca Martin met with Mayor Jim Ferrell and city staff to relay the Chamber’s concerns, before testifying with Chamber board chairman Lori Santamaria against the associations at a public hearing for the Economic Development Strategy draft plan.

“As financial resources stretch to support our mutual goal of economic growth, the Chamber is concerned that the city is preparing to compete with the Chamber in providing services and benefits for the business community — whether carved into districts or as a whole,” Santamaria said at the meeting, adding that the city would be implementing some of the same efforts the Chamber has already outlined.

Martin said Business District Associations can be two things: A district focused on infrastructure and improvements, which includes sidewalk improvements and signage — an avenue to create a sense of place. Or they are used for marketing purposes.

“Sometimes they work beautifully when focused on infrastructure — it’s a place to draw people in — but it’s also the essential struggle in these examples because they’re only focused on specific areas,” Martin said in an interview.

Also, both typically cost money in the form of taxes or association dues or fees.

Martin, the only one certified by the American Chamber of Commerce Executives in Washington state, who is among only 6 percent in the country, has worked with business districts during her time on a Pennsylvanian chamber division.

“These kinds of initiatives separate the business community,” she said. “It will create silos and it can deteriorate into ‘us and them.’”

In June, the Chamber was doing quarterly updates when city officials proposed a downtown district in which the Chamber “vigorously expressed opposition.” It was a surprise to see the city was proposing four districts, Martin said.

Those four would be dispersed in downtown, Twin Lakes and north and south Pacific Highway, where businesses are clustered and where business neighborhood zones are located.

“There’s enough competition in the global market place without having to compete because of a zip code,” Martin said.

City officials said the district associations would act as a way to reach out to businesses on issues, such as traffic, crime prevention and development signage.

“As it relates to doing anything beyond and above that, don’t look at me going out there and hanging Christmas tree lights for an organization, that’s up to them to do that,” said Economic Development Director Tim Johnson when the mayor asked if he believed the associations would pose a challenge to the Chamber. “We have work to do as a city and that’s what I’m intending.”

But Martin said there’s overlap and duplication between the city’s draft plan and the Chamber’s strategic work program, “which, for the record, does not include hanging holiday lights.”

“Input and collaboration with the Chamber is critical as we work together to achieve our shared vision for the growth of our community,” she said at the meeting. “As you know, the Chamber sees business and community issues as interrelated and believes all resources must work towards the broader goals of a regional, globally-connected economic base.”

Ferrell said at the meeting the associations would not require dues and he doesn’t want any competition with the Chamber, only to work “hand in glove.”

“Rest assured, we’re committed to making sure there’s no duplication of efforts,” he told Martin, noting that friends are honest with each other and her testimony was important to hear.

City spokesman Chris Carrel said in an interview the associations would act in much the same way as the Neighborhood Connection meetings the city has implemented.

“The purpose is recognizing the need for the city to increase our knowledge of on-the-ground conditions that businesses are facing in the different zones of the city,” Carrel said.

Because this is a draft, Carrel said there’s still time to vet some of those issues in the plan.

“It’s all about getting the plan out there, getting feedback, hearing concerns and what people like about the plan and using that dialogue to improve the plan in its final stage,” he said.

Additionally, Carrel said these associations would not be formal Business District Associations “that have structures or dues.”

“This is a communications and outreach effort,” he said.

Carrel said the plan doesn’t outline who would head this effort if adopted, as they’re still ironing out the details.

“This is one small part of a plan with a lot of substantive pieces,” he said.

But the Chamber is concerned about the lack of detail and Martin said if it’s such a small part, why not take it out?

“Businesses make data-driven decisions — What’s the purpose, how is it funded, maintained and measured?” she said. “I don’t see it written in the plan.”

Although the Chamber thinks it’s great there is a draft plan on the table for Federal Way’s economic development, “perhaps if the Chamber had direct input in the plan, we might not be having these questions right now,” Martin said.

Dan Altmayer, a small business owner and member of the Chamber board of directors, wrote in a letter to the Council that the plan is silent on the funding of the Business District Associations. He said unless there are grant funds, the money to operate these can only come from the city or businesses.

“If the city funds them, it will be at the expense of other programs or operations,” he wrote. “If businesses fund them, it will either be ‘involuntary’ (new fees and/or taxes) or voluntary (membership type sponsorships).”

He said he’s against new taxes exclusively on the business community and also against the “voluntary” fees because of the “direct competition” it would put on the Chamber of Commerce for “finite resources.”

“I am concerned for the prospects of businesses that fall outside one of the Business District Associations,” he wrote. “Will the city be giving preferential treatment to businesses within the Business District Association at the expense of those outside the Business District Associations?”

Businesses along First Avenue, Ninth Avenue, Military Road and the Weyerhaeuser Campus will not be included, he said.

The Council is expected to adopt the strategy on Feb. 3.

Ferrell and Johnson could not be reached for comment before the Mirror’s deadline.