Template revised April 12, 2018.

COMMISSION

AGENDA MEMORANDUM

Item No.

BRIEFING ITEM

Date of Meeting

July 28, 2020

DATE: July 10, 2020

TO: Stephen P. Metruck, Executive Director

FROM: Dave McFadden, Managing Director of Economic Development

SUBJECT: Responding to COVID-19 using the 2020 Economic Development Partnership Program

EXECUTIVE SUMMARY

The Port’s Economic Development Partnership program was established in 2016 to advance local

economic development in collaboration with King County cities (except Seattle). The program

has an annual budget of $960,000 that is funded by the tax levy. Grants to support local or

regional economic development are provided on a $1 per capita basis with a minimum funding

amount of $5,000 and a maximum funding amount of $65,000. The Port also requires a 50

percent match (up to 25 percent monetary match and 25 percent in-kind resource match) to

ensure that cities are committed to project success.

Cities have used Port partnership grants to implement local and regional projects that have

helped boost economic activity across King County. With the advent of the COVID-19 pandemic,

Cities rapidly shifted their grant projects to support relief and recovery efforts necessitated by

economic dislocation.

Port staff worked with City partners recently to evaluate and suggest changes to the partnership

grant program. As a result of these discussions staff and our city partners are recommending

focusing next year’s grant initiatives on a narrower range of activities that will help small business

recover and regenerate consumer confidence around shopping and visiting local attractions.

PIVOTING PROJECTS TO SUPPORT ECONOMIC RECOVERY AND RESILIENCY

On December 10, 2019, the Commission authorized the Executive Director to execute contracts

supporting the 2020 Port of Seattle Economic Development Partnership Program. Thirty-one

cities are participating in the program this year.

Table One shows how grant funds are distributed and matched by participating cities:

• Approximately 63 percent of 2020 funds are awarded to nine large cities (cities with

populations greater than or equal to 50,000 people),

• 30 percent of funds are awarded to twelve mid-size cities (cities with populations

between 10,000 and 49,999), and

COMMISSION AGENDA – Briefing Item No. 7c Page 2 of 10

Meeting Date: July 28, 2020

Template revised September 22, 2016.

• 7 percent of funds are awarded to ten small cities (cities with populations less than

10,000.)

Table 1: 2020 Economic Development Partnership Awards by City Size

City Size

Port Award

City Match

Total

Investment

# of

Cities

Large cities

(50,000+ population)

$562,970 (63%)

$ 358,300

$921,270

Mid-size Cities

(10,000 - 49,999 population)

$263,560 (30%)

$ 198,040

$461,600

Small Cities

(under 10,000 population)

$61,290 (7%)

$ 49,895

$111,185

Total

$887,820

$ 606,235

$1,494,055

Most cities developed their 2020 grant projects prior to the COVID-19 pandemic. As a result of

the pandemic’s economic dislocations, many cities quickly pivoted to focus on economic relief

and recovery. As examples:

• Five East King County cities launched (Re)Startup 425 to provide a central website for

small business assistance in five languages, CARES ACT loan resources, business

resiliency resources, and a “What’s Open” virtual map.

• Kent expanded a workforce program to address retaining needs for dislocated workers

and moved classes online.

• Burien, Enumclaw, Mercer Island, and Woodinville started working closely with their

chambers of commerce to communicate crucial information to businesses and develop

projects that aid re-opening and recovery.

Staff facilitated the pivot by modifying over half of the city contracts so cities could meet

immediate needs in their communities. The following table shows how cities have refocused to

address small business issues and regenerate consumer confidence (tourism and placemaking).

This is a significant shift compared to 2019 when business recruitment and business assistance

and retention were the top priorities.

Table 2: 2020 Awards by Category and Number of Cities

Project Category

Port Funding

City Match

Total Investment

# of

Cities

Small Business

Assistance

$304,209 (34%)

$ 179,451

$483,660

Tourism

$183,243 (21%)

$ 169,262

$352,505

Downtown/

Commercial

Revitalization, etc.

$160,406 (18%)

$ 118,737

$279,143

COMMISSION AGENDA – Briefing Item No. 7c Page 3 of 10

Meeting Date: July 28, 2020

Template revised September 22, 2016.

Business Attraction

and Trade

Development

$127,412 (14%)

$ 34,000

$161,412

Feasibility - Real

Estate Development

$46,050 (5%)

$ 65,535

$111,585

Workforce

$66,500 (7%)

$ 39,250

$105,750

Total

$887,820

$ 606,235

$1,494,055

56*

*Some cities are pursuing multiple projects across different project categories.

This shift in focus mirrors national economic development trends. In a report by the SizeUp

Company titled “Coronavirus Economic Development Case Studies and National Survey Results”

(see attachment), economic development has shifted in a similar manner across the county:

• 86.5 percent of respondents listed assisting local businesses as their highest priority in

economic development now in the context of COVID-19;

• 64 percent of respondents have “increased community relations and communications;”

and

• 32 percent have “stopped or significantly reduced business attraction and prospecting.”

SUPPORT RELIEF AND RECOVERY: RECOMMENDED PROGRAM REVISIONS FOR 2021

As the shift in economic development focus was unfolding,

Port staff worked with a team of City representatives to

evaluate the partnership grant program and make

recommendations around next year’s focus considering the

COVID pandemic.

This group completed a SWOT analysis of King County’s

COVID-19 economy, identified needed actions and priority

strategies, discussed funding options, and evaluated whether special funds for countywide or

regional initiatives would favorably impact partnership program outcomes.

The advisory committee recommended:

1. Narrow the eligible activities to the highest impact relief and recovery initiatives. Port

funding should support COVID-19 relief and recovery.

2. Eligible projects should be narrowed to small business assistance (resiliency and

reopening), tourism development, and local/ regional placemaking.

3. Trade development, workforce development, and feasibility/ planning studies would still

be allowed but require a pre-application consultation with Port staff to make sure

initiatives support COVID-19 relief and recovery.

4. Discourage business attraction and community branding or placemaking initiatives that

are not tied to reopening and recovery.

City Advisory Panel

Bre Keveren

North Bend

Doug Lein

Auburn

Ellen Miller-Wolfe

Kirkland

Philly Marsh

Bellevue

Tanja Carter

SeaTac

Tim Morgan

Maple Valley

Eric Lane

Des Moines

COMMISSION AGENDA – Briefing Item No. 7c Page 4 of 10

Meeting Date: July 28, 2020

Template revised September 22, 2016.

These advisory group recommendations were also shared and discussed with economic

development staff from King County cities. The cities endorsed the new priorities and were open

to working together on new regional or countywide economic development initiatives. Port staff

indicated an openness to explore new regional or countywide initiatives subject to funding

availability.

These program recommendations will be implemented if the Commission ultimately budgets and

authorizes the partnership grant program in 2021.

APPENDIX A: 2020 CITY PROJECT SUMMARIES

Regional Partnerships

Redmond and Kirkland (Bellevue participated using separate funds)

• Innovation Triangle – Business attraction (and retention) initiative targeted towards

technology companies that would benefit from Eastside location.

Issaquah, Kirkland, Redmond, and Renton (Bellevue participated using separate funds)

• Supporting Re-Startup 425 – A new regional web portal for COVID-19 resources for

East King County. The site offers an email for businesses to request technical

assistance from a variety of service providers, business resources by business type

(sole-proprietor, essential businesses, etc.), and webinars for businesses on how to

handle the economic changes.

• Supporting Startup 425’s pilot accelerator program in partnership with Bellevue

College.

Duvall and Snoqualmie

• Supporting “Savor Snoqualmie Valley” tourism initiative by replacing signage,

implementing social media promotions, and implementing a cooperative marketing

campaign.

Individual City Projects

Algona - $5,000

• King County Transfer Station Transition to Commercial Land Use – Conducting a real

estate study to determine how to redevelop King County’s waste transfer station

property that is being transferred to the city.

Auburn - $65,000

• Auburn IPZ Incubator Operations – Continuing to bring entrepreneurs and startup

businesses together in a collaborative environment that provides the necessary tools

to launch, grow, and commercialize their businesses.

• Buy Local Auburn – Marketing and growing electronic, citywide business directory

COMMISSION AGENDA – Briefing Item No. 7c Page 5 of 10

Meeting Date: July 28, 2020

Template revised September 22, 2016.

that prepopulates all businesses with a business license. Businesses have been able

to manage their profiles during COVID-19 showing their open hours and services like

delivery or curbside pickup.

Bellevue - $65,000

• Grand Connection Development and Bellwether Arts Festival - The city will continue

to brand, identify, and activate the Grand Connection, Bellevue’s signature

downtown space.

• BelRed Arts District - The City is supporting the retention and growth of “creative

sector” businesses in the BelRed Arts District.

• Participating in the Startup425, Re-Startup 425, and the Innovation Triangle regional

partnerships using separate funding.

Black Diamond - $5,000

• Commercial Area Placemaking Project – The City is enhancing its key commercial

district to increase local shopping, visitation, and foot-traffic in the area, and help

develop a “great place” for residents and tourists.

Burien - $52,000

• Grow the Discover Burien Maker Space and Commissary Kitchen to promote food-

oriented microenterprises through training, collaboration, and shared kitchen space.

• Downtown 153

Street Activation – Public space activation and streetscape

improvement programs to drive economic activity and visitor spending to local

businesses and provide attractions for travelers and tourists who stay in airport

hotels.

• Regional Visitor and Business Attraction – Working with the Seattle Southside

Chamber of Commerce to run a Burien visitor attraction campaign targeting regional

tourism and continue supporting business attraction through the Soundside Alliance

for economic development.

Carnation - $5,000

• Tolt Avenue Business Retention – Support key local businesses impacted by Tolt

Avenue construction project. Work includes connecting business owners with

technical assistance and creating local "special events & promotions" to draw people

to the downtown core during road construction.

Covington - $20,000

• Covington Small Business Assistance Center Partnership – Providing services to

existing businesses and potential new small start-ups through the Small Business

Assistance Center to retain businesses while two new developments open.

• Website and Marketing Refresh – The City will update its website to promote new

amenities in Covington’s Town Center and the Lakepointe Development.

COMMISSION AGENDA – Briefing Item No. 7c Page 6 of 10

Meeting Date: July 28, 2020

Template revised September 22, 2016.

Des Moines - $31,580

• Identification of Public and Private Partners for Des Moines Marina - Building on the

first 3 Port of Seattle grants, the City will now be pursuing funding to support the Des

Moines Marina redevelopment. The grant will help the City identify potential

financing and development partners.

Duvall - $7,840

• Savor Snoqualmie Social Media Outreach – Support Savor Snoqualmie Valley’s social

media outreach, including videography to showcase events and happenings

throughout the valley and in Duvall.

• Restoration of Main Street/ SR 203 Wayfinding Signage - Rehab existing wayfinding

signs on Main Street.

Enumclaw - $12,200

• Small Business Outreach and Assistance – Partner with the Enumclaw Chamber of

Commerce to contact 50 – 100 businesses in all industry segments to identify

companies needing help and to assess the economic impact of the Covid-19

pandemic on the business community.

• Recovery Buy Local Campaign - Create an economic recovery plan that includes a buy

local campaign to support local businesses.

Federal Way - $65,000

• Promoting 2021 NCAA Event - Preparation for 2021 NCAA Swimming and Diving

Championships (athletic event) expecting over 2000 athletes and 10,000 people.

• Virtual Consulates of Washington Event - Promotion of international trade and

investment opportunities in Federal Way with consulates and other groups using a

virtual event.

• Hospitality and Tourism Training Program – Online hospitality education and tourism

training for industry staff at over 400 businesses.

Issaquah - $37,590

• Regional Business Summit with Chamber of Commerce - Host a Regional Business

Summit to discuss regional issues.

• Data collection project with Chamber of Commerce - Work with the Chamber of

Commerce to obtain information on home-based businesses, new businesses each

year, or annual economic development growth and other business data.

• Great Careers for Students - Hosting "Great Careers" career fair to introduce students

to living-wage jobs that do not require a 4-year degree.

• Business Retention and Buy Local program – Contacting businesses to see how the

city can support them and running a marketing program encouraging residents to

support local businesses.

• Participated in the Startup425 and Re-Startup 425 regional partnerships.

COMMISSION AGENDA – Briefing Item No. 7c Page 7 of 10

Meeting Date: July 28, 2020

Template revised September 22, 2016.

Kenmore - $23,320

• Business Survival Training – A free, virtual business training series helping small

businesses deal with business challenges from COVID-19.

• Professional Photos for Economic Development Attraction - Update aerial and

community stock photos for economic development marketing.

Kent - $65,000

• Apprenticeships and Advancing Manufacturing Training - Establish a new, non-

redundant, non-competitive, easily accessible technical training program for

incumbent and dislocated employees in the Kent Industrial Valley. The program was

modified to better support dislocated workers and is being delivered online during

COVID-19.

Kirkland - $65,000

• Participating in the Startup425, Re-Startup 425, and the Innovation Triangle regional

partnerships.

Maple Valley - $26,180

• Entrepreneur and Resident Survey on COVID-19 and Economic Data - Conduct two

surveys (one for businesses and one for residents) to identify where residents work

and to collect information from businesses on assistance needed during COVID-19

pandemic.

• Advertising/ Marketing for Outdoor Recreation - Market opportunities promoting the

city as a destination for outdoor recreation in travel, outdoor recreation, or economic

development publications, trade shows, and events.

Mercer Island - $24,470

• Buy Local Economic Recovery Initiative - Encourage local spending and sales at

Mercer Island businesses by residents and tourists through a “Shop Local-Spend Like

It Matters,” buy local marketing campaign. Working with businesses to share

resources and document needs.

Milton - $5,000

• Mainstreet Placemaking Project - Better delineate and promote Milton's main

commercial corridor with street banners and wayfinding signage.

Newcastle - $12,450

• Retail Gap Analysis and Report – Conduct a retail gap analysis to identify retail and

service businesses that could be attracted to the city.

Normandy Park - $6,610

• Update Economic Development Website – Integrating city and Soundside Alliance

COMMISSION AGENDA – Briefing Item No. 7c Page 8 of 10

Meeting Date: July 28, 2020

Template revised September 22, 2016.

website resources including a GIS property search tool.

• Ecotourism Marketing Video – Producing an "ecotourism marketing video" to use on

the city’s website and in marketing programs.

North Bend - $6,965

• Tourism Attraction Signage - Work with the North Bend Downtown Foundation to

create and restore wayfinding signage and add 16 seasonal beautification and

community event hanging light pole banners.

Lake Forest Park - $13,250

• Events at the Town Center - Purchasing a used “show-mobile” (mobile stage) to host

distanced or drive-in events, like a Battle of the Bands, at the Town Center shopping

center to bring community visibility to open businesses offering take-out or curbside

pick-up.

Pacific - $6,875

• Business Engagement Survey – Partnering with a local chamber of commerce to

developing a business outreach and engagement program to survey businesses and

see how the city can support them during COVID-19.

Redmond - $64,000

• Light Rail Displaced Businesses Outreach - Supporting businesses impacted by light

rail construction activities.

• Participating in the Startup425, Re-Startup 425, and the Innovation Triangle regional

partnerships.

Renton - $65,000

• Food Entrepreneur Small Business Development – Guiding the creation of a food

business incubator in downtown Renton that supports food entrepreneurs and

businesses.

• Digital Tourism Development – Running a marketing campaign to attract visitors,

event planners, and investors to Renton. This plan will be modified as needed for the

COVID-19 economic conditions.

• Downtown Façade and Storefront Improvement Program – Continue a façade

improvement and storefront design incentive program to “refresh” the appearance

of the City’s retail district.

• Participating in the Startup425 and Re-Startup 425 regional partnerships.

SeaTac - $29,180

• Business "Synergy" Retention and Expansion Program – Conducting outreach to

business community support key enterprises and COVID-19 assistance to local

businesses.

• Website COVID-19 Update for Businesses - Updating the SeaTac city economic

COMMISSION AGENDA – Briefing Item No. 7c Page 9 of 10

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Template revised September 22, 2016.

development website with relevant information for businesses about COVID-19 and

resources for economic recovery.

Shoreline - $56,370

• Music Industry Incubation and Tourism - Support the growth of Shoreline’s music

industry through a partnership with the local chamber of commerce.

• Glass Art Festival Tourism and Commercial Center Activation - Promote the city’s

neighborhood commercial center through participation in Refract 2020: The Seattle

Glass Experience.

• Urban Pop-Up, Drive-In Series - Support local, independent filmmakers by providing

paid opportunities to showcase their products to local audiences, while encouraging

audiences to use a regional, online map showing open restaurants.

• Shoreline Place Farmer’s Market Promotion - Promote the Farmers Market to new

audiences and build upon the 2019 growth during the upcoming period during

COVID-19.

Skykomish - $5,000

• Digital Interpretive Tour of Skykomish History - Create a digital walking tour of

Skykomish working collaboratively with the Skykomish Chamber of Commerce, the

Skykomish Historical Society, and the U.S. Forest Service. The tour will be marketed

with QR codes at points of interest, physical signage and marketing collateral, search

engine optimization, and social media.

Snoqualmie - $8,000

• Seasons in Snoqualmie Destination Marketing and Tours - Promote the "Seasons in

Snoqualmie" brand to encourage visitation to Snoqualmie year-round and contract

with Savor Snoqualmie Valley to grow Instagram content and run the "Unexpected

Pairings" marketing campaign to raise the visibility of unique activities in and around

the City of Snoqualmie.

Tukwila - $20,930

• Digital Media Program for Tourism - Create a digital media program for tourism by

creating new content shared through a new website, email newsletter, and social

media accounts.

• Business Assistance – Contracting with the Seattle Southside Chamber to provide

technical assistance and service referrals for Tukwila businesses during COVID-19.

• Kent Valley Industrial Area Company Recruitment - Maintaining the business

recruitment campaign for aerospace and manufacturing companies across the Kent

Valley in partnership with Kent and Auburn.

Woodinville - $12,410

• COVID-19 Online Resource Hub – Partner with Woodinville Chamber of Commerce to

create, maintain, and market a COVID-19 business recovery resource micro-site while

COMMISSION AGENDA – Briefing Item No. 7c Page 10 of 10

Meeting Date: July 28, 2020

Template revised September 22, 2016.

contacting businesses with resources to reopen.

• Neighborhood Commercial Branding – Improve placemaking and neighborhood

identification for tourists through updated and expanded neighborhood banners, a

social media campaign, and a future visitor map.

Awarded funds are calculated based on the budgets submitted by participating cities in the

applications and agreements executed by the Port of Seattle.

ATTACHMENTS TO THIS BRIEFING

(1) ED Partnership Program PowerPoint Presentation 072820

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS

December 10, 2019 – The Commission authorized the Executive Director to execute contract

agreements and implement the 2020 Economic Development Partnership program with

King County cities in an amount not to exceed $965,000.

July 23, 2019 – The Commission heard an updated on the 2019 Economic Development

Partnership program.

January 8, 2019 – The Commission authorized the Executive Director to execute contracts

supporting the 2019 Port of Seattle Economic Development Partnership Program in an

amount not to exceed $960,000.