Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
4f
ACTION ITEM
Date of Meeting
November 14, 2017
DATE: November 7, 2017
TO: Dave Soike, Interim Executive Director
FROM: Dave McFadden, Managing Director, Economic Development Division
SUBJECT: Approve Port Economic Development Partnership Applications
Amount of this request:
$76,265
Total estimated project cost:
$965,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute Economic
Development Partnership Program contracts with the Cities of Carnation, Woodinville, Pacific,
Bothel, and Lake Forest Park to implement local economic development initiatives for an
amount not to exceed $76,265, as detailed below.
EXECUTIVE SUMMARY
The following five cities have completed their partnership applications and staff is
recommending the Port execute contracts with these jurisdictions. Staff have reviewed each
city application and is confident each local partnership initiative is impactful and ties to Port
business interests. Other participating cities are finalizing applications for review at the
November Commission meeting.
• Carnation - $5,000
o Assist in building out improvements to the Tolt Avenue’s historic Central
Business District improvements as Carnation pursues a tourism economic
development strategy.
o Support the construction of new gateway landmarking poles at planned
central festival street concept at intersection located between Bird St and Tolt
Ave. in downtown Carnation.
• Woodinville - $11,570
o Support the City of Woodinville’s downtown placemaking efforts as an
oucome of their Wine and Tourism Study, Downtown Little Bear Creek
Corridor Master Plan and Downtown Streetscape Master Plan.
o The City will work with the Woodinville Chamber of Commerce and local
businesses to paint a mural in event staged with the local community on a
gateway feature to downtown—the historic train trestle—and use the art
COMMISSION AGENDA – Action Item No. 4f Page 2 of 6
Meeting Date: November 14, 2017
Template revised September 22, 2016; format updates October 19, 2016.
piece in subsequent marketing efforts to better connect downtown shops
with wine tourism.
• Pacific-- $6,835
o Hire an intern to support the City’s Community Development Manager in
improving business sector data collection and bolster business outreach and
recruitment through a better understanding of existing companies.
o Research on businesses will be utilized in support of the City’s on-going efforts
to designate and certify their new Manufacturing Industrial Center with its
neighboring city of Sumner.
• Bothell -- $26,860
o Continuation and additional phase planning and development work applied
for last year for improvements to the Canyon Park office campuses where
major stakeholders (business tenants, property owners, workers, and relevant
governmental entities) are convened for how best to reposition the suburban
employment zone to complement planned investments from Sound Transit.
• Lake Forest Park--$26,000
o The City of Lake Forest Park is requesting a dollar amount that reflects a two-
year period of per capita grant funding. The City had a larger project it
wanted to fund in 2016 and asked the Port to consider earmarking last year’s
funds for this year’s grant cycle.
o Support for a study by the City of how best to capitalize the transit-oriented
development opportunities from Sound Transit’s bus rapid transit system’s
new route through their central district and major shopping center.
o The Port will help Lake Forest Park hire professional services to determine the
market feasibility of a new town center design which would include new
development opportunities for a mixed-use center with housing, retail,
commercial, and new public spaces around a planned bus stop and 300
vehicle parking garage.
JUSTIFICATION
In June 2016 the Commission created a new economic development grant fund that provides
38 King County cities per capita funding to advance local economic development throughout
the region. Annual grant funding is being provided on a $1 per capita formula with a maximum
of $65,000 while ensuring each city receives at least $5,000 (see allocations on next page)
The Economic Development Partnership program is structured to drive meaningful outcomes:
• Provide some flexibility to define local economic development projects
• Tie to economic development (ideally the Century Agenda although not required)
• Require a 50 percent local match to ensure cities are also committed to project
success
Port staff met with cities in June to discuss 2016 results and kick off the 2017 grant cycle.
COMMISSION AGENDA – Action Item No. 4f Page 3 of 6
Meeting Date: November 14, 2017
Template revised September 22, 2016; format updates October 19, 2016.
This project supports the Century Agenda vision of adding 100,000 jobs through economic
growth led by the Port of Seattle. Grant funds will be distributed to 38 city partners in King
County so a larger team is working to create middle class jobs within the region. Through
purposeful contracts with local governments, the Port can extend its economic development
reach to all parts of King County.
Creating a Port Economic Development Partnership Program also honors the Port’s
commitment to create economic opportunity for all, partner with surrounding communities,
and promote social responsibility. The new grant program also can help:
• Position the Puget Sound region as a premier international logistics hub;
• Advance this region as a leading tourism destination and business gateway;
• Promote small business growth; and
• Anchor Puget Sound urban-industrial land use to prevent sprawl in less developed areas.
DETAILS
The Port’s new Port Economic Development Partnership Program grant program helps address
the lack of economic development funding for local projects. The Port will also use this new
program to accomplish Century Agenda goals through purposeful economic development
partnerships with local cities.
Project Objectives
The Port Economic Development Partnership Program will help the Port advance regional
economic vitality through focused partnerships with King County cities. Grants will be made to
each city to pursue programs and projects that stimulate business development, job creation
and community revitalization. Each participating city may in turn contract with local nonprofits
(ex. Chamber of Commerce, Visitor Bureau, etc.) to carry out specific initiatives. Port Economic
Development Partnership Programs can be used to support the following economic
development activities:
• Business recruitment initiatives designed to attract new companies to a region or city
• Small business development (including incubator/accelerator projects)
• Industry retention and expansion assistance (ex. Maritime, Aerospace, etc.)
• Tourism development
• Downtown revitalization
• Commercial or industrial property development
• Other community or economic development projects that support new investment and
job creation
The Revised Code of Washington article 53.08.245 authorizes the port to engage in economic
development programs. While RCW 53.08.245 specifically permits ports to engage with non-
COMMISSION AGENDA – Action Item No. 4f Page 4 of 6
Meeting Date: November 14, 2017
Template revised September 22, 2016; format updates October 19, 2016.
profit corporations in furtherance of such programs, it does not address port engagement with
other governmental agencies.
Another port district statute, RCW 53.08.240 (2) permits the Port to enter into contracts with
other municipal corporations (as well as counties, US government and State). The Interlocal
Cooperation Act, Chapter 39.34 RCW, and specifically RCW 39.34.080, also permit such joint
activity. The general requirement is that in all the joint activities, the two agencies must be able
to exercise the same power separately as they intend to exercise jointly. RCW 35.21.703
authorizes cities to enter into economic development programs.
These statutes allow the Port to make funds available to King County cities for the purpose of
advancing programs that are consistent with Port related/authorized activities. Contracts or
inter-local agreements will identify the specific obligations of each party (and the specific use of
the Port funds) to ensure that partnerships and initiatives pursued are appropriate.
Schedule
June 26 – Meeting with cities to highlight 2016 results and provide overview on 2017 program
June 27 – Public information (including web content) about Port Economic Development
Partnership Program available
August to November 2017 – Agreements negotiated and approved with King County Cities
June 2017 to May 2018 – Project implementation
June 2018 – Project evaluation
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Delay action until October
Cost Implications: Alternative 1 would cost nothing.
Pros:
(1) This provides time for Port to see what all the cities are doing before the
Commission makes numerous individual commitments
(2) A later deadline gives cities more time to develop their initiatives and complete
their partnership grant applications.
Cons:
(1) The Port may not know what every city intends to do with partnership funds until
October and the comprehensive view of program impacts still may not be
completely clear
(2) The Century Agenda’s success depends in part on teamwork. Without active
economic development partnerships with King County cities the Port may not realize
Century Agenda aspirations and goals.
COMMISSION AGENDA – Action Item No. 4f Page 5 of 6
Meeting Date: November 14, 2017
Template revised September 22, 2016; format updates October 19, 2016.
This is not the recommended alternative.
Alternative 2 – Have each city present its proposed partnership initiative to the Commission as
a basis for contract approval.
Cost Implications: If the Commission approves (or declines) each city project it is difficult to
pinpoint overall costs for the program. At the most, the cost would still be approximately
$962,000 annually.
Pros:
(1) Allows the Commission to understand and approve each partnership project
(2) Builds rapport between applicant cities and the Port Commission
Cons:
(1) It may be unwieldy to schedule 38 cities into Commission meetings
(2) This process will likely create delays in overall project implementation
This is not the recommended alternative.
Alternative 3 – Approve partnership agreements for the three cities that are ready to
implement economic development projects
Cost Implications: The cost of these agreements is $124,320. If the Port entered into
agreement with the other cities the program would cost approximately $965,000 annually (not
including staff time)
Pros:
(1) Taking action on these agreements today is consistent with process timelines staff
shared with cities at application workshops and in program literature.
(2) Supporting agreements with three cities allows these jurisdictions to start work on
their economic development initiatives right away.
Cons:
(1) It will be hard for the Commission to contrast details of each city grant and see how
the broader grant program is being implemented when contracts are approved over
several Commission meetings.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 4f Page 6 of 6
Meeting Date: November 14, 2017
Template revised September 22, 2016; format updates October 19, 2016.
FINANCIAL IMPLICATIONS
Annual Budget Status and Source of Funds
The Port Economic Development Partnership Program is a new initiative that will cost
approximately $965,000 to implement in 2017. The Port property tax levy will be used to
support the 2017 grant program.
Future Revenues and Expenses (Total cost of ownership)
The Port Economic Development Partnership Program is anticipated to operate annually. It will
likely cost between $950,000 and $1,000,000 per year unless the Commission changes or
eliminates the program.
ATTACHMENTS TO THIS REQUEST
(1) 2017 Economic Development Partnership Program
(2) 2016 Summary Economic Development Partnership Grant Report
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
• October 10, 2017 – Commission authorized the Executive Director to execute twelve city
contracts totaling $414,150
• September 12, 2017 – Commission authorized the Executive Director to execute six city
contracts totaling $212,610
• August 15, 2017 – Commission authorized Executive Director to execute six city
contracts totaling $235,785
• June 27, 2017 – Commission briefing on 2016 results
• November 8, 2017 – Commission authorized CEO to execute four city contracts totaling
$81,770
• October 11, 2016 – Commission authorized CEO to execute fifteen city contracts totaling
$411,170
• September 27, 2016 - Commission authorized CEO to execute three city contracts worth
$132,350
• August 23, 2016 – Commission authorized CEO to execute nine city contracts worth
$294,335
• June 14, 2016 – Commission authorized the Chief Executive Officer to: (1) establish a
new economic development grant fund; (2) authorize up to $1,000,000 for 2016 grants
to King County cities; and (3) perform necessary project management and contract
administration to support the new grant program.
