Wenatchee, WA

How a Small Washington City Rewrote its Rules of Economic Development

In the Apple Orchards of Central Washington, Public-Private Partnerships are Generating Billions in Investment and Redefining How American Cities Grow.

Wenatchee, Washington, population 35,519, sits in a geographic bowl where the Columbia and Wenatchee rivers converge, creating what locals describe as an unusually collaborative environment for public-private partnerships. The city has become a laboratory for coordinated growth, with nearly $3 billion in regional investment projects underway and a downtown resurgence that defies typical small-city constraints.

“I moved to Wenatchee in 1990 and served as an editor and reporter at the Wenatchee World Newspaper for about 20 years,” says Steve Maher, project coordinator at Our Valley Our Future. “The thing I’ve noticed over the years is that there is a lot of collaboration and working together that goes on here. I would say it’s almost part of our DNA when it comes to working together and collaborating.” This collaborative foundation extends back to 1892 when the Great Northern Railroad first connected the valley to national markets, followed by the construction of hundreds of orchards, canal systems, and two Columbia River dams.

The geographic constraints that define Wenatchee have paradoxically become its greatest asset. “We live in a geographic bowl so you can pretty much see everything, which creates this familiarity and an environment I believe in where people can focus and work together,” Maher explains. “Here, you know everybody.” This physical intimacy has nurtured a culture where major infrastructure projects conceived decades ago continue to move forward, exemplifying remarkable institutional continuity that sets Wenatchee apart from communities where political cycles typically derail long-term planning.

The Partnership Model That Works

Modern economic development typically pits cities against private developers in adversarial relationships over permits, zoning, and community impact. Wenatchee has inverted this dynamic, creating what amounts to a regional consortium where public agencies, nonprofits, and private investors share both risks and rewards. The model has attracted national attention as communities nationwide struggle with infrastructure funding and development coordination.

“The partnerships and the collaboration are key and unique to the Wenatchee Valley and to the city of Wenatchee,” says Laura Gloria, the city administrator. “Because of our size, we rely heavily on our partners here in the area, including the Chelan-Douglas Regional Port Authority, Our Valley Our Future, the Wenatchee Downtown Association and the YMCA in co- creating economic development and quality of life. We can’t be responsible for all of it.” This interdependence has produced tangible results, with the Pybus Public Market serving as the flagship example of how multiple stakeholders can align interests around a single project.

The market emerged from a partnership between the city, port authority, and private investors who transformed an underutilized waterfront property into a regional destination. Gloria explains, “There was a significant private investment and effort that finalized that project and made it a reality. It’s one of the constant success stories that you hear about here in Wenatchee, its not just about redeveloping a very underutilized piece of property along the waterfront but also this amazing success story of collaboration.”

Strategic Economic Development

Rural communities across America face a common dilemma: attract any business willing to relocate, or risk economic stagnation. Wenatchee has chosen a different path, implementing what amounts to strategic economic curation that prioritizes wage quality over job quantity. With over 80% of the two-county region owned by the federal government, available commercial land is precious, forcing officials to make calculated decisions about which industries deserve access.

Render Credit: Signal Architecture

“We take a hard look at what types of businesses we’re recruiting and we aren’t just going for a big win, we’re actually going for a business that’s going to bring jobs that people can live off of here,” says Stacie de Mestre, director of economic development at the Chelan Douglas Regional Port Authority. “Our median household income in the region is $87,000 and that’s the highest in all of eastern Washington. When we’re going after a company to recruit here, we’re looking to make sure that their average salaries are above our annual wage.”

The strategy has attracted twelve data centers under construction, capitalizing on the region’s abundant hydroelectric power. These facilities represent part of Washington state’s broader data center boom, which has generated over $474 million in tax incentives since 2018. “While they don’t provide a ton of jobs, they provide well-paying jobs and that actually works well,” de Mestre notes. “We have a little bit of a housing crisis here. So if we were to recruit a big industrial manufacturer who needs 4,000 workers, we couldn’t supply or support that.”

The port authority has also invested directly in downtown infrastructure, purchasing 150,000 square feet of warehouse buildings with plans for a craft beverage district, demonstrating how economic development and urban planning intersect in smaller markets.

Downtown Renaissance in Progress

Small-city downtowns across America tell similar stories of vacant storefronts, struggling retailers, and evening emptiness. Wenatchee’s downtown defies these trends, with over $130 million in active investment projects and a business environment where openings consistently outnumber closures. The transformation points to strategic planning and market fundamentals that have created sustainable urban vitality.

“We represent around 530 businesses and every year we see more businesses open than we see close,” says Rosa Pulido, executive director of the Wenatchee Downtown Association. “One of the things that makes downtown so vibrant and lively is all the different industries that we see. It’s not just one type. In the last year we’ve had floral shops, coffee shops, gaming shops, bars, and restaurants open up. It really adds to that vibrancy that you see day to day.”

The diversity goes beyond retail into mixed-use development, with the Weidner apartment project bringing 250 units to the downtown core. The first being The Majestic, a 212-unit mixed-use building with 100 public parking spaces in the community’s parking garage, designed to attract more people to downtown. The second is their revitalization of the Wenatchee Jailhouse, a once-forgotten building near The Majestic that Weidner will renovate and add two additional buildings on either side of the structure to bring more retail offerings to downtown. Property owners are adapting existing buildings for modern business needs. “We’re seeing some property owners use the space to create coworking spaces and just create more opportunities for smaller micro enterprises,” Pulido explains.

Todd Kiesz, an attorney and downtown building owner, describes the current atmosphere: “Every time you’re down there to go visit restaurants or bars or stores, you’re running into friendly faces. You’re running into proprietors who are happy to have you there and give you warm greetings. It’s very much just a good feeling space.” The combination of historic architecture, new construction, and active streetscapes has created what urban planners call the “18-hour downtown,” where activity stretches well beyond traditional business hours.

Infrastructure as an Economic Driver

Infrastructure investment typically follows economic growth, with cities scrambling to upgrade systems after development strains capacity. Wenatchee has reversed this sequence, using infrastructure as the catalyst for coordinated development. The strategy culminated in the Reimagine Wenatchee master plan, which identified connectivity projects that would support both current investment and future growth over the next two decades.

“Last year we finalized a process called the Reimagine Wenatchee master plan, which aims to identify and leverage resources and development to enhance our downtown,” Gloria explains. ” The plan identified a variety of strategic projects that align with the needs of the community both present and future. What we heard from the community was more walkable communities, more accessible communities, how are we connecting the residential areas to our core commercial and retail areas in a way that’s safe?”

The approach includes shifting to a “one dig” philosophy that maximizes efficiency when upgrading utilities. “If we’re going to replace the waterline, we’re going to go ahead and look at the sewer and do the paving all at once, upgrade the curb ramps,” Gloria notes .“We have limited resources, so we have to start strategizing and planning on how to use those effectively for the highest and best use.”

The crown jewel remains the Apple Capital Loop Trail, a 22-mile paved system that connects parks, businesses, and residential areas while serving as both recreation amenity and transportation corridor, showcasing how infrastructure can serve multiple economic development objectives simultaneously. Recently, the City of Wenatchee and the Chelan County PUD invested over $12 million in upgrading amenities on this beloved trail.

An Authentic and Sustainable Tourism Strategy

Tourism marketing often emphasizes manufactured attractions and visitor convenience over community character. Wenatchee has developed a tourism strategy that prioritizes authenticity and environmental stewardship, recognizing that sustainable visitor growth depends on preserving the qualities that make destinations attractive in the first place. The approach has gained urgency as outdoor recreation tourism surged during the pandemic, bringing both opportunities and management challenges.

Visit Wenatchee is the city’s brand. The tagline is we are the heart of Washington,” Gloria explains.

“Everything that was created here was created by residents for residents. Our Visit Wenatchee brand is really about recognizing the authenticity of the community that we’ve built here and inviting others to share in the experience.”

Wenatchee has many top quality venues for arts, entertainment and hospitality that contribute to local tourism and quality of life for residents including the Numerica Performing Arts Center which welcomes over 34,000 visitors each year.

The strategy emphasizes responsible recreation, particularly important given Wenatchee’s proximity to Seattle’s urban population. “We definitely have seen an influx of outdoor recreation tourism, ,” Gloria notes. “We’re trying to figure out how to manage it by not overburdening certain prime locations and making sure that they’re clean and accessible for the first person and the last person.”

Sports tourism represents a deliberate expansion area, with the city investing lodging tax revenue in dedicated staff and facility improvements. “About two years ago, we invested in a position specifically for sports tourism and bringing in those tournaments,” Gloria says. “We already have established events, but continuing to grow that sector is key to diversifying our economy so we have to  plan for investing and expanding our facilities.” The four-season recreation opportunities, from skiing at Mission Ridge to Columbia River access, provide year-round tourism potential while supporting local hospitality businesses.

Vision for the Future

Small cities often struggle to balance growth with livability, either stagnating from lack of investment or losing their character to rapid development. Wenatchee faces this challenge with advantages many communities lack: established collaborative frameworks, diversified economic base, and institutional planning capacity that isn’t shackled to political cycles. The region’s third fastest-growing metro status in Washington state has created both opportunities and pressures that will test these systems.

“Our shared goal is a prosperous, healthy and resilient region,” Gloria emphasizes. “We’re doing all of this work to provide  a high quality of life. The city’s approach prioritizes infrastructure maintenance and utility reliability as foundational elements, recognizing that economic development depends on dependable basic services.

Our Valley Our Future continues its regional planning role, with the third five-year action plan scheduled for development next year. “We held a large projects workshop and there were about 20 other capital projects that are coming anywhere from the idea stage right now to the design stage,” Maher explains. “Over the first two action plans, we’ve seen about 100 of the projects and programs meet their objectives. All those things are based on collaboration, people working together, innovation, taking ideas and making sure that they happen.”

The pandemic brought an influx of high-income residents, with new arrivals averaging $95,000 per capita income during the first two years. This demographic shift, combined with ongoing infrastructure investment and strategic business recruitment, positions Wenatchee to maintain its collaborative culture while managing substantial growth. The real test will be whether the partnership model that built today’s success can adapt to tomorrow’s scale and complexity.

AT A GLANCE

Who: City of Wenatchee

What: Regional economic development hub leveraging public-private partnerships, strategic business recruitment, and infrastructure investment to drive sustainable growth

Where: Wenatchee, Washington

Website: www.wenatcheewa.gov