Template revised September 22, 2016.
COMMISSION
AGENDA MEMORANDUM
Item No.
7a
ACTION ITEM
Date of Meeting
June 12, 2018
DATE: June 12, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Dave McFadden, Managing Director, Economic Development Division
SUBJECT: Approve Port Economic Development Partnership Applications
Amount of this request:
$ 11,410
Total estimated project cost:
$925,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute Economic Development
Partnership Program contracts with the City of Enumclaw to implement local economic development
initiatives for a total amount not to exceed $11,410.
EXECUTIVE SUMMARY
The Port of Seattle’s Economic Development Partnership Program provides King County cities
per capita funding to advance local economic development throughout the region. Annual
grant funding is provided on a $1 per capita formula with a maximum of $65,000 while ensuring
each city receives at least $5,000.
The grant fund is structured to drive meaningful outcomes:
Provide some flexibility to define local economic development projects
Tie to economic development (ideally the Century Agenda’s although, not required)
Require a 50 percent local match to ensure cities are also committed to project success
Staff is seeking Commission authorization to execute an ED Partnership grant contract with the
City of Enumclaw. The City of Enumclaw would use an $11,410 grant to promote their
downtown during the fall and holiday shopping season. Wayfinding banners and a concerted
promotional campaign are planned to attract tourists and residents to the central business
district between October and Christmas. The City was unaware of the Port’s Economic
Development Partnership program until recently when it received a Port tourism grant. The
City would like to take advantage of the Port partnership grant to implement downtown
revitalization and tourism projects this fall.
COMMISSION AGENDA – Action Item No. 7a Page 2 of 5
Meeting Date: June 12, 2018
Template revised September 22, 2016; format updates October 19, 2016.
At the Commission meeting, the Cities of Federal Way, SeaTac, Issaquah and Kenmore will be
providing updates to the Commission on their grant funded initiatives. The City of Federal Way
is using a partnership grant to support business recruitment. In particular the City is working to
attract foreign direct investment through a partnership with foreign consulate offices.
Issaquah is investing Port partnership funds in several projects. They are establishing a new
tourism marketing organization, providing “Chamber University” training to small businesses,
and part of a regional StartUp 425 initiative that is helping companies learn to export.
SeaTac is building off the Port partnership to improve wayfinding signage to the City’s main
services. With 60,000 cars coming through SeaTac daily, the City wants to better capture
visitors and travelers going to and through the City.
Kenmore has used partnership grants to support small business training and their business
incubator. The City recently won a Municipal Excellence Award for Economic Development
from the Association of Washington Cities for the work they have done with Port grants.
JUSTIFICATION
This Economic Development partnership program supports the Century Agenda vision of adding
100,000 jobs through economic growth led by the Port of Seattle. Grant funds are distributed
to city partners in King County (outside Seattle) so a larger team is working to create middle
class jobs within the region. Through purposeful contracts with local governments, the Port is
extending its economic development reach to all parts of King County.
The Port’s 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 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 Economic Development Partnership Program helps the Port advance regional
economic vitality through focused partnerships with King County cities. Grants are made to
participating cities to pursue programs and projects that stimulate business development, job
creation and community revitalization. Cities may in turn contract with local nonprofits (ex.
Chamber of Commerce, Visitor Bureau, etc.) to carry out specific initiatives. Port Economic
COMMISSION AGENDA – Action Item No. 7a Page 3 of 5
Meeting Date: June 12, 2018
Template revised September 22, 2016; format updates October 19, 2016.
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-
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, U.S. 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
interlocal 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.
2018 Schedule
June 12 – Commission makes decision to award proposed grants
June/July – Agreements negotiated and approved with Enumclaw and King County.
August through October -- Project implementation
November – Projects complete – final reports due to Commission
December – Annual program evaluation complete – Commission briefing on results and any
proposed changes to program for next year
COMMISSION AGENDA – Action Item No. 7a Page 4 of 5
Meeting Date: June 12, 2018
Template revised September 22, 2016; format updates October 19, 2016.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Decline or postpone ED Partnership projects in Enumclaw
Cost Implications: $0
Pros:
(1) Saves Port funding that can be used to support other initiatives.
(2) Provides Commission and staff additional time to consider other projects.
Cons:
(1) Leaves gap in signage for visitors using the Savor Snoqualmie trail system.
(2) Sends mixed signal to City of Enumclaw.
This is not the recommended alternative.
Alternative 2 – Approve contracts for Enumclaw
Cost Implications: $11,410
Pros:
(1) Enumclaw is ready to partner with the Port on a local economic development
initiative.
(2) Enumclaw providing 50% match funds to leverage Port dollars and show commitment
to projects.
Cons:
(1) Funding request is outside normal application cycle – applicant will have less time to
complete projects.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
The Port Economic Development Partnership Program budget is $965,000 annually based on
per capita funding formulas. There are about ten cities that do not participate in the program
and several cities have not used all their grant funds. Twenty-eight cities participated in the
inaugural partnership program (2016-2017) investing $755,762 in economic development
initiatives throughout King County. For 2017-2018 we expect cities to use their funds and
invest approximately $910,000 in economic development initiatives. The Port property tax levy
supports this grant program.
ATTACHMENTS TO THIS REQUEST
(1) Economic Development Partnership Grant Program
(2) 2016 Summary Economic Development Partnership Grant Report
COMMISSION AGENDA – Action Item No. 7a Page 5 of 5
Meeting Date: June 12, 2018
Template revised September 22, 2016; format updates October 19, 2016.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
November 14, 2017 – Commission authorized five city contracts totaling $76,265.
October 11, 2017 – Commission authorized 15 city contracts totaling $411,170.
September 12, 2017 – Commission authorized six city contracts totaling $212,610.
August 15, 2017 – Commission authorized six city contracts totaling 235,785.
June 27, 2017 – Commission briefing on 2016 results.
November 8, 2016 – Commission authorized four city contracts totaling $81,770.
October 11, 2016 – Commission authorized 15 city contracts totaling $411,170.
September 27, 2016 - Commission authorized three city contracts worth $132,350.
August 23, 2016 – Commission authorized 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.
