Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM
Item No.
6E
ACTION ITEM
Date of Meeting
January 8, 2019
DATE: December 14, 2018
TO: Stephen P. Metruck, Executive Director
FROM: Dave McFadden, Managing Director of the Economic Development Division
SUBJECT: Authorization of funding for the 2019 Economic Development Partnership Program
Amount of this request:
$960,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute contracts supporting
the 2019 Port of Seattle Economic Development Partnership Program in an amount not to
exceed $960,000.
EXECUTIVE SUMMARY
The Economic Development Partnership Program, funded by the tax levy, provides cities $1 per
capita with a minimum funding amount of $5,000 and a maximum funding amount of $65,000
(same formula as prior funding cycles). The Port also requires a 50% match to ensure cities are
also committed to project success.
If funding is authorized, staff will start implementing the 2019 EDP program. The Port will make
the program application for funds available to cities. As participating cities finalize their work
plans, the associated contracts will be approved by the Port.
DETAILS
In June 2016, the Port of Seattle Commission (POS) created the Economic Development
Partnership (EDP) program to advance local economic development in partnership with cities in
King County. The Commission authorized a second round of EDP program funds in 2017. POS
awarded just over $950,000 to 30 King County cities through the EDP program during the 2017-
2018 funding cycle. During this funding cycle, the Port shifted the EDP program timeline to align
with the calendar year budget cycle after receiving feedback from multiple city partners.
Continuing with the same project requirement criteria as the prior two funding cycles, the Port
asks that projects submitted by cities in the 2019 funding cycle are aligned with the city’s
economic development strategy and support the Port’s Century Agenda or business interests.
Eligible activities include:
Small business development (including incubator/accelerator projects);
COMMISSION AGENDA – Action Item No. _6E___ Page 2 of 3
Meeting Date: January 8, 2019
Template revised September 22, 2016; format updates October 19, 2016.
Business recruitment initiatives designed to attract new companies to a region or city;
Industry retention and assistance service delivery or projects (e.g. workforce
development);
Tourism development;
Downtown revitalization;
Commercial or industrial property development;
Other community or economic development projects that support new investment and
job creation.
In the 2017 to 2018 funding cycle, collaboration among cities provided a greater return on
individual city investments. Cities were able to initiate projects previously outside of their
budget and the 2018 grant funds provided a foundation for moving forward on major multi-
year initiatives.
Support and feedback from the cities continue to be overwhelmingly positive and they
enthusiastically anticipate the continuation of the program.
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, 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.
FINANCIAL IMPLICATIONS
Annual Budget Status and Source of Funds
The Port Economic Development Partnership Program is an initiative that will cost
approximately $965,000 to implement in 2019. The Port property tax levy will be used to
support the 2019 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.
COMMISSION AGENDA – Action Item No. _6E___ Page 3 of 3
Meeting Date: January 8, 2019
Template revised September 22, 2016; format updates October 19, 2016.
ATTACHMENTS TO THIS REQUEST
None
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
December 11, 2018 – The Commission saw a presentation on the results of the 2017-2018
Economic Development Partnership Program and the findings of a draft program
evaluation report completed by Community Attributes Inc.
June 12, 2018 – The Commission approved a specific city grant contract with the city of
Enumclaw.
November 14, 2017 – The Commission approved specific city grant contracts with the cities
of Carnation, Woodinville, Pacific, Bothell, and Lake Forest Park.
October 10, 2017 – The Commission approved specific city grant contracts with the cities of
Auburn, Bellevue, Covington, Kirkland, Newcastle, Normandy Park, North Bend,
Redmond, Sammamish, SeaTac, Snoqualmie, and Tukwila.
September 12, 2017 – The Commission approved specific city grant contracts with the cities
of Des Moines, Issaquah, Kenmore, Renton, Shoreline, and Skykomish.
August 15, 2017 – The Commission approved specific city grant contracts with the cities of
Burien, Duvall, Mercer Island, Kent, Federal Way, and Maple Valley.
June 27, 2017 – The Commission saw a presentation on the results of the 2016-2017
Economic Development Partnership Program.
