Template revised April 12, 2018.

COMMISSION

AGENDA MEMORANDUM

Item No.

BRIEFING ITEM

Date of Meeting

April 28, 2020

DATE: April 14, 2020

TO: Port of Seattle Commissioners

FROM: Stephen P. Metruck, Executive Director

SUBJECT: Draft Port Early Action Recovery Plan

EXECUTIVE SUMMARY

On April 1, 2020, the Port of Seattle Commission passed Motion 2020-06 to provide guidance

for Port leadership in prioritizing Port Investments to assist local, regional, and statewide

economic recovery from the COVID-19 pandemic.

As the region moves through an unprecedented social and economic crisis related to the

COVID-19 virus, the Port of Seattle as a major economic driver for the region is in a unique

position to lead economic recovery efforts across King County and Washington State. The

Port’s unique statutory powers combined with its real estate, capital assets and financial

capabilities can also be used to help small businesses recover, create and retain jobs, and boost

economic activity. The Port can boldly help lead the state through an unprecedented period of

economic challenges resulting from the public health emergency.

This memo provides a recommended framework for Port of Seattle recovery efforts. The

initiatives highlighted in this outline will be guided by the Commission’s guiding principles of

equity, sustainability and community engagement.

The economic emergency facing the Port and the region demands both a rapid response and a

longer-term strategy. The Commission has already taken actions to provide immediate relief to

impacted Port related businesses. In the coming weeks, staff will evaluate the Port’s financial

position and capacity and then work with the Commission to further develop an action plan for

economic recovery. The action plans will include funding levels, goals and objectives, metrics,

and timeline for implementation. We will continue to engage with stakeholders and the

community on ideas and opportunities for economic recovery. By July, we propose to initiate

action programs and partnerships with external organizations to support our objectives.

Throughout the remainder of 2020 we will provide regular updates to the Commission and the

public.

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Background

The Port’s mission is to promote economic opportunity and quality of life in the region by

advancing trade, travel, commerce and job creation in an equitable, accountable and

environmentally responsible manner. The Port has broad statutory authority to operate airport

and seaport facilities along with related transportation and cargo infrastructure. The Port’s

operations require substantial capital investments that result in major construction projects.

Among other additional powers, the Port has authority to carry out economic development

activities and workforce development programs, and to promote tourism and operate tourism

related facilities

Through its operations the Port drives the economy of the region and the state. All of Washington’s key

industries depend upon Port services to reach markets and customers. Without access to markets, local

businesses could not prosper nor grow jobs. Port operations also directly provide family-wage, durable

jobs for more than 100,000 workers across trade, travel, and tourism industries, making Port-related

jobs one of the most important jobs engines in King County. More specifically:

• Seattle-Tacoma International Airport is one of the largest job sites in King County, with

more than 300 businesses employing 19,000 workers on location supporting $22.5

billion in economic activity. Across the region, airport activity directly supports 87,000

jobs.

• Maritime cargo shipping, in partnership with the Northwest Seaport Alliance (NWSA) ,

supports 20,100 jobs and $5.9 billion in business revenue.

• Commercial fishing, recreational boating and Port real estate operations support nearly

10,000 jobs and $1.4 billion in economic activity.

• Port cruise operations provide a platform for 5,500 local jobs and generates $900 million

in revenue for local businesses.

• Through its five-year, $3.4 billion capital development program the Port supports the

employment of thousands of local construction and related jobs.

❖ Commission Guiding Principles

In carrying out its planning and actions, the Port will align with the Commission’s guiding

principles of:

• Equity

• Sustainability

• Community engagement.

❖ Equity Considerations

The underrepresented communities in the King County area have suffered historically from

systemic disparities and are especially hard hit during this pandemic. In response to the

extraordinary circumstances posed by the COVID-19 public health crisis, the Recovery Plan will

prioritize economic relief and recovery efforts to these vulnerable communities that are

disproportionately impacted by the health pandemic. The following set of core principles are

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Template revised September 22, 2016.

intended to complement the Commission’s directives on COVID-19 response, and to further

elaborate on how equity can be integrated into the Port’s response:

• Integrate Values of Equity and Inclusion

• Prioritize the Most Vulnerable

• Mitigate Economic Loss

• Ensure Language and Cultural Competence

• Support Community-based Organizations

A more detailed framework and exploration of each objective is provided in attachment 2.

Economic Recovery Framework:

❖ Capital Project Investments

The Port plans to make $3.4 billion of capital facility investments over the next five years. The

over $1 billion of scheduled construction work in 2020 and 2021 will provide a significant

stimulus to the regional economy.

These construction projects support quality jobs, Women and Minority Owned Business

Enterprise (WMBE) businesses and a web of suppliers and businesses. On average per month,

Port construction work generates directly 1,300 construction jobs and over 2,000 more jobs

induced or indirectly. This work involves over 25 different trades.

Keeping these projects moving forward during the COVID-19 crisis and moving forward on

other projects as public health restrictions lessen can generate significant economic activity and

provide the following benefits:

• Additional WMBE Contracting Opportunities

In addition to Port-wide 2020 WMBE utilization goals, the Port’s capital program will identify

projects less than $40,000 that can provide special procurement opportunities for small and

disadvantaged businesses. Staff will also use Job Order Contracting opportunities that benefit

small and disadvantaged businesses.

• Emphasis: Environmental Sustainability Goals

The Port will prioritize capital projects that utilize the Port’s Sustainable Evaluation Framework

and support attainment of Century Agenda goals for greenhouse gas and air emission

reductions, and habitat stewardship.

• Emphasis: Quality Jobs and Workforce Development

Port capital projects drive requirements for contractors to pay prevailing wages and promote

apprenticeship utilization. On capital projects administered via Project Labor Agreements, the

Port can also advance its Priority Hire policy. This policy modeled after the city and county, can

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help increase apprenticeship opportunities for people of color, women and other low-income

communities.

❖ Recovery Capital Opportunity Fund (New Initiative)

Funds in this initiative would be invested in new “shovel-ready” building and infrastructure

projects that are not currently in the five-year CIP. These projects can be expected to compete

well for future opportunities anticipated in future Federal stimulus packages.

This Recovery Capital Opportunity Fund allows us to utilize the Port’s statutory authority under

Washington State law as land owner and property developer. This fund allows us to leverage

public and private investment on Port-owned property to support construction projects that

serve our maritime and aviation enterprises at every scale from small to large.

The Port’s Recovery Capital Opportunity Fund be informed by the 2020 Port of Seattle Real

Estate Development Strategic Plan. The strategic plan, initiated in early 2020, will be a critical

component of overall Port recovery efforts. The plan will help establish investment priorities

and opportunities to advance economic recovery. It will also outline innovative financial tools

and partnerships that may have the potential to enhance the leverage ratio of Port capital and

the economic impact of these projects..

❖ Tourism

Tourism is the State’s fourth largest industry with travel related employment of over 180,000

and State and local tax receipts of over $2 billion. Seattle - Tacoma International airport and

our maritime gateways have traditional been the entry points for visitors to Seattle and

Washington State, especially during the peak summer travel season. Tourism throughout the

region and the state has been decimated but, when restrictions on non-essential travel are

lifted, the Port can help the tourism industry rebound. Working with Visit Seattle, the Seattle

Southside Regional Tourism Authority, the Washington Tourism Alliance (WTA) and destination

marketing organizations across the state, the Port can assist in funding and implementing a

unified campaign to encourage interstate tourism and welcome visitors back to our State.

Port staff also has been making changes to selected 2020 tourism grant agreements to ensure

these partners’ initiatives are closely aligned with a post COVID-19 statewide tourism marketing

campaign. The Airport Spotlight advertising program can also be realigned in a similar fashion

so it can amplify a post COVID-19 campaign promoting travel and tourism in Washington State.

❖ Cruise Industry

The cruise industry globally and in Seattle has been hard-hit by the COVID-19 pandemic. The

2020 summer season for Alaska homeport cruises has yet to start due to state and federal

health mandates, and it appears likely vessels will not begin sailing to Alaska again before July

1. The conditions under which cruise operations will resume are still under discussion at the

national and international levels.

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Template revised September 22, 2016.

When the conditions allow it, cruise operations could play a critical part of the region’s

economic recovery. When fully operational, the Alaska homeport cruise industry generates

about $894 million each year for our economy, along with 5,500 jobs here in the community.

Last year, the cruise industry at the Port of Seattle was an important component of both the

regional and statewide tourism economy with each vessel call in 2019 supporting $4.2 million in

economic activity. The more than 600 thousand passengers each season is a leading element of

the region’s tourism industry.

Although the pandemic has halted cruise operations around the world, the industry has proved

itself resilient and adaptable to changing market conditions. Bookings for the 2021 season are

reported strong.

Protecting the health and safety of the community, the traveling public and crews will be a top

priority and require close collaboration by the Port staff with cruise line customers, cruise

terminal operators, the United States Coast Guard, U.S. Customs and Border Protection and the

Washington Department of Health. The Port will execute its responsibilities to work with all

stakeholders to ensure that rigorous safety and health measures are in place and that

confidence is rebuilt with travelers and the public.

❖ Workforce Development

As airport workers face challenging layoffs and regional unemployment rates skyrocket, the

Port can help address workforce challenges by implementing training and placement initiatives

that help current and future employees.

Airport Employees and Employers:

The Port will work with partners to support airport employees and employers impacted by the

COVID-19 pandemic. We will work with PortJobs, the Career Advancement Center and other

partners to identify and support airport workers who may be on standby or temporary layoff.

We also recommend expanding Airport Career Pathways training initiatives. A promising

partnership with South Seattle College and PortJobs is helping the Port support Aviation

Maintenance Mechanic training for disadvantaged workers. This program can be expanded to

support other Aviation pathways and provide disadvantaged workers access to training that can

help them develop new skills and lead to better job opportunities. Staff will work with the

Seattle King County Workforce Development Council and other partners to develop these new

training initiatives. These allies can help provide important wrap around services and online

learning supports that are critical to the overall success of the program.

Youth Employment Program:

Although reduced in scope and scale, the Port will continue offering high school and college

students an array of internships and career connected learning opportunities. Providing

employment and learning opportunities for youth is an especially important part of Port

recovery efforts. With the uncertainty of the duration of COVID 19 public health policy

measures, the Port will work to develop on-line, virtual career exploration and summer

internship programs. The program will work with community partners to select students from

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disadvantaged communities especially those whose families have been economically impacted

as a result of the pandemic.

Duwamish River Green Jobs Program:

The Port’s External Relations, Maritime Environmental, and Workforce Development groups

will partner with Duwamish Valley stakeholders to organize hands-on, career-connected

trainings that focus on habitat restoration on Port-owned properties along the Duwamish River.

The program will emphasize recruitment opportunities for youth and adults experiencing

challenges integrating into the mainstream environmental sector (such as people with low

incomes, disabilities or with experience in the criminal justice system). This program establishes

an inclusive green economy focused on Port environmental priorities related to riparian and

urban forestry stewardship, salmon recovery efforts, and climate change.

❖ Small and Disadvantaged Business Assistance

Helping our Port tenants and small businesses that rely on Port operations recover from these

difficult economic times is paramount. The economic repercussions from the COVID-19

emergency will be significant and the Port can be a key player to help small businesses survive.

Our existing partnerships with Highline College’s Small Business Development Center, Tabor

100 business hub and the Minority Business Development Agency (MBDA) are critical towards

helping our small business partners access CARES Act loans and other resources.

Small Business Development Centers (SBDCs) are poised to get stimulus funding to help

manage the flood of loan and technical assistance requests they have received. The SBDCs are

doing their best to accommodate the flood of calls from small businesses seeking help, but they

need aid from additional partners that can support the influx of small companies requesting

assistance. The Port will reach out to Chambers of Commerce, Startup 425, and other partners

to help ensure there is a broad circle of technical assistance available for small businesses at

our Port facilities, in disadvantaged communities and across the region. Small business needs

are glaring and significant, especially within our ethnic communities – we can provide

immediate help by convening and supporting organizations that can help these enterprises

survive the pandemic’s economic shocks.

❖ Leveraging Partnerships and Port Grant Funding

The Port’s unique partnerships with King County Cities, Greater Seattle Partners, the Puget

Sound Regional Council, the Soundside Alliance, and Chambers of Commerce can also drive

economic recovery across the entire region.

King County Cities’ Grant Program:

The Port’s King County Cities’ grant program is helping focus resources across the region

around economic recovery. Port staff asked city partners to revisit their initiatives this year and

prioritize projects that drive economic recovery and relief. Toward this end, eleven cities are

using funds to support small businesses. Eleven cities are implementing tourism grants and/or

placing marketing campaigns that can help welcome travelers and residents back to local

attractions. Another fifteen cities are complimenting small business and tourism efforts with

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Template revised September 22, 2016.

placemaking initiatives. Organizing community markets, accenting city commercial districts, and

improving wayfinding signage can help attract visitors and help support local merchants.

The table below reflects city economic grant program investments. As you can see, cities across

King County are providing over $680,000 of funding leverage to support economic recovery and

relief. Staff is still working to reorient a few cities grant projects, but most cities have embraced

pivoting to support economic recovery and relief.

Project Categories

2020 Port Award

Total Investment

(Port Award + Match)

Number of

Cities

Small Business Assistance

$251,204

$407,805

Tourism

$154,993

$311,555

Placemaking: Buy Local

Campaign, Downtown/

Commercial Revitalization, etc.

$182,693

$306,718

Business Attraction and Trade

Development

$145,930

$186,592

Feasibility - Real Estate

Development

$48,780

$214,180

Workforce

$66,500

$105,750

Total

$850,100

$1,532,600

Greater Seattle Partners (GSP):

Greater Seattle Partners (GSP) has also shifted gears to focus on regional economic recovery. It

is holding weekly calls with economic development staff across the Puget Sound region on

economic resiliency and resources available to promote recovery and reinvestment. GSP is now

leading regional efforts to advance economic mitigation and recovery preparation. This new

focus for GSP includes:

• Maximizing aid and support for the region

• Leading regional coordination and collaboration efforts; and

• Serving as an advocate and voice for the region

The Port’s 2020 funding support for GSP is helping the organization support this new recovery

initiative. Staff will evaluate GSP funding level based on the organization’s ability to capture aid

and funding to support economic recovery.

South King County Fund

The South King County Fund (SKCCF) can also be a resource to support a combination of

economic development, workforce development, and environmental initiatives in Burien, Des

Moines, Federal Way, Normandy Park, SeaTac, Tukwila.

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Template revised September 22, 2016.

The Airport Community Ecology Program (ACE):

The Airport Community Ecology Program (ACE) is an instrumental part of the Port’s recovery

initiatives. ACE currently invests in community-led environmental programs serving Burien, Des

Moines and SeaTac. In order to continue to support South King County non-profits and

community groups, the program will be expanded to include Federal Way, Normandy Park and

Tukwila. The Port will utilize $250,000 from the South King County Fund to support this

expansion. This ACE II special application cycle will be available this summer for projects

needing funding in the Fall. .

❖ Stakeholder and Community Engagement

The Port will continue to support our tenants, customers, employees, small businesses and our

communities through inclusive, equitable and robust engagement practices to ensure that the

Port’s recovery programs connect to our most vulnerable populations.

Working with existing partners such as PortJobs, Fair Work Center, Duwamish Valley PCAT , and

Highline College Small Business Development Center, outreach efforts will directly engage

constituencies providing access to resources in multiple languages, using a variety of accessible

engagement practices. Through targeted surveys, webinars, town hall meetings, virtual one-

on-one discussions, speaking engagements with member organizations and consistent, ongoing

communications, the Port and its partners will help identify and connect needs and

opportunities as well as expand our reach to impacted communities.

In addition to robust community engagement, the Port will also coordinate recovery efforts

with federal, state and regional partners. Working with these allies can help the Port leverage

its own efforts, take advantage of new relief/recovery resources and maximize funding impact.

❖ Key Implementation Timelines

May 2020

• Financial Capacity Analysis

• Action Plan Development

• Commission Committees

• Engagement planning

June 2020

• Community Engagement

• Commission Committees

• Plan Finalization

• Early Actions

July 2020

• Plan Implementation

• Issue RFPs for key recovery services

• Communications and Engagement

December 2020

• Commission update on recovery

implementation efforts

Quarterly through 2021

• Recovery implementation updates

COMMISSION AGENDA – Briefing Item No. 7b Page 9 of 9

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Template revised September 22, 2016.

ATTACHMENTS TO THIS BRIEFING

(1) Presentation slides

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS

April 14, 2020 – The Commission has a Study Session on the Capital Improvement Plan and

briefing on the Federal CARES Act.

April 01, 2020 – The Commission passed Motion 2020-06