Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
9a
BRIEFING ITEM
Date of Meeting
March 13, 2018
DATE: February 20, 2018
TO: Steve Metruck, Interim Executive Director
FROM: David McFadden, Managing Director, Economic Development Division
SUBJECT: Presentation on Formation of Regional Economic Development Alliance
EXECUTIVE SUMMARY
Significant changes are unfolding that will impact the organization and delivery of trade and
economic development initiatives in King County and the Puget Sound region. Over the next
four months, both the Economic Development Council of Seattle-King County (EDC) and the
Trade Development Alliance of Greater Seattle (TDA) will integrate most of their existing
programs under a newly created Regional Economic Development Alliance (REDA).
The Port provides significant funding ($192,000/year) to the EDC and TDA so it is important to
understand how these changes will impact our longstanding partnerships and the regional
economic development landscape. REDA has also asked the Port to invest $50,000 in its initial
planning and start up activities.
Background
Challenge Seattle – a private-sector initiative led by former Governor Chris Gregoire and the
CEOs of the Puget Sound region’s largest companies – has led efforts to create REDA in order to
better coordinate and execute on a shared economic development approach. Creating this
new organization addresses a widely-held criticism from local stakeholders that our area’s
economic development efforts are too diffuse and ineffective as a result.
Challenge Seattle benchmarked best-in-class economic development organizations from across
the country and led site visits with local leaders (including Port of Seattle Commissioner
Stephanie Bowman) to visit some of these metro areas. In particular, they found 1) that high
performing economic development organizations concentrate significant activities into a
regional organization, 2) that the private sector is a critical partner in success, and 3) that key
functions of the regional organization include lead generation, research and analysis, marketing
and CEO engagement.
Local leaders used this information to create a blueprint for the proposed Regional Economic
Development Alliance. Both the EDC and TDA Boards recently voted to integrate under REDA on
or before July 1 when the following conditions are met:
COMMISSION AGENDA – Briefing Item No. _9a_ Page 2 of 3
Meeting Date: March 13, 2018
Template revised September 22, 2016.
1. REDA has been incorporated into a 501 c (x) and established its governance
structure including:
a. Representatives from the public sector as agreed upon through the 2017 public
sector governance structure discussions; and
b. Representatives from private sector leaders representing small, medium and
large business interests.
2. A Chief Executive Officer has been hired to lead REDA’s staff and programs.
3. A consultant has been hired to develop, in partnership with industry associations, an
economic development delivery strategy that will be implemented by REDA.
4. A work plan for REDA has been developed to support business attraction, marketing
and research until the consultant’s strategy has been completed.
5. A funding model and budget has been established and initial seed funding of $1.5M
has been raised to support the development of the organization.
6. REDA has committed to and established an investor advisory group mechanism to
drive engagement by REDA with small/medium sized businesses and governments as
well as member of the labor, education and workforce development organizations
to help ensure broad input and participation from regional economic stakeholders.
7. TDA and EDC staff will be given the opportunity to transition into REDA.
8. REDA will assume the assets and liabilities of TDA and EDC at a mutually agreed
upon transition date in 2018.
Bob Drewel is serving as REDA’s interim executive until they hire a CEO. Once a CEO is on board
the organization will develop a comprehensive five-year strategy to market the region, attract
new business, and create jobs. REDA is incorporating as a 501©6 nonprofit organization and
will have a mix of private/public board representatives from across the Puget Sound region.
The new alliance will also be raising funds to sustain its work and wants to ultimately be at least
50 percent privately funded.
At this point REDA is not proposing to carry forward business retention and expansion (BRE)
initiatives. Efforts to support key clusters and local company expansion projects have been a
core part of the EDC’s initiatives but it is unclear whether this work will be sustained. EDC staff
is working with industry association leaders on a BRE transition plan - whether this initiative is
continued is unclear at this point.
King County is also working to determine where state associate development organization
(ADO) funding should go. A little over $200,000 annually has gone to the EDC to support
recruitment and retention work. Since the state requires ADO organizations to do some level of
retention/expansion work, these funds will not go to REDA.
Staff will keep the Commission apprised of how REDA moves forward. There will be a number
of engagement opportunities for Commissioners and the Port will be asked to help fund the
organization on an ongoing basis. Staff may also propose changes to the Port Economic
COMMISSION AGENDA – Briefing Item No. _9a_ Page 3 of 3
Meeting Date: March 13, 2018
Template revised September 22, 2016.
Development partnership program to ensure city grant recipient’s activities are aligned with
REDA.
ATTACHMENTS TO THIS BRIEFING
(1) Presentation slides
(2) REDA Resolution
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None
