4c

PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      4c 
CONSENT ITEM 
Date of Meeting    September 27, 2016 
DATE:    September 19, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   David McFadden, Managing Director, Economic Development Division 
SUBJECT:  Approve Port Economic Development Partnership Applications 
Amount of This Request:         $132,350 
Est. Total Project Cost:           $962,435 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to  execute Economic
Development Partnership Program contracts with Cities of Bellevue, Shoreline and Snoqualmie
for an amount not to exceed $132,350 as detailed below. Due to time sensitive projects, staff is
requesting these three City Partnership applications be approved. 
SYNOPSIS 
The following cities have completed their partnership application and staff is recommending the
Port execute contracts with these jurisdictions. Staff has reviewed each application and is
confident each local initiative is impactful and ties to Port business interests. Other city
applications will be reviewed at the October 11, Commission meeting. 
Bellevue - $65,000 
Establish partnerships with eastside cities to enhance Startup 425, a business support
center. 
Provide export and marketing training to technology companies in preparation of
attending Mobile World Congress; 
Undertake an event to recruit international technology companies identified at Select 
USA, scheduled for October 10, 2016. 
Collaborate with eastside cities in marketing the Innovation Triangle. 
Shoreline - $54,500 
Develop a Request for Expression of Interest (RFEI) Prospectus to attract public and
private investment for a Shoreline Media Campus. The Media Campus is intended for
local production of movies, episodic television, commercials and gaming content and
provide a flexible platform for new technology production to thrive such as VR/AR. The

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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 19, 2016 
Page 2 of 6 
RFEI will provide information on market demand, design and financial models to present
this opportunity to potential investors and developers. 
Snoqualmie - $12,850 
Collaborate with other Snoqualmie Valley cities on the Savor Snoqualmie branding and
marketing campaign. 
The City of Snoqualmie will create a poster series promoting outdoor recreation, culinary
experiences, cultural heritage and local art; develop and install wayfinding signage
connecting the city to the Snoqualmie Trail and develop a calendar of events which will
assist online visitors to develop local itineraries. 

BACKGROUND 
In June the Commission created a new economic development grant fund that provides thirty
eight King County cities per capita funding to advance local economic development throughout
the region. Annual grant funding is being provided on a $1 per capita formula with a maximum
of $65,000 while ensuring each city receives at least $5,000 (see allocations on next page) 
The new 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 although not required) 
Require a 50 percent local match to ensure cities are also committed to project success 
Port staff held three application workshops to promote the new program. Staff also connected
with cities via email and responded to numerous questions from municipalities. The Port
established an August 1 application deadline for cities wanting to have their partnership
agreements considered at the August 23 Port Commission meeting. A September 1 deadline has
been established for cities wanting to have their agreements considered at the September 27
Commission meeting. Due to time sensitive projects 3 applications will be considered on the
consent agenda on September 27th, with the remainder scheduled for the October 11 Commission
meeting. 
PROJECT JUSTIFICATION AND DETAIL 
The Port's new Port Economic Development Partnership Program grant program helps address
the lack of economic development funding for local projects. The Port will also use this new
program to accomplish Century Agenda goals through purposeful economic development
partnerships with local cities. 
Project Objectives 
The Port Economic Development Partnership Program will help the Port advance regional
economic vitality through focused partnerships with King County cities. Grants will be made to

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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 19, 2016 
Page 3 of 6 
each city to pursue programs and projects that stimulate business development, job creation and
community revitalization. Each participating city may in turn contract with local nonprofits (ex.
Chamber of Commerce, Visitor Bureau, etc.) to carry out specific initiatives. Port Economic
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 nonprofit
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. 
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.

Work Completed to Date 
Port staff has taken several steps to implement the new Port Economic Development Partnership
Program grant program authorized in June: 
Publicized grant fund development and purpose; 
Developed a simple four-page grant application; 
Publicized and conducted three application workshops for cities and their partners; 
Worked with Strategic Initiatives and Legal Department to develop model agreements
and resolutions each city would use to implement partnerships; and 
Answered numerous questions from partner cities about the program. 

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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 19, 2016 
Page 4 of 6 
Schedule 
June 14  Commission Authorization 
June 14  Public information (including web content) about Port Economic Development
Partnership Program available 
June/July  Application workshops 
August to October 2016  Agreements negotiated and approved with King County Cities 
June 2016 to May 2017  Project implementation 
May 2017  Project evaluation 
FINANCIAL IMPLICATIONS 
Budget Status and Source of Funds 
The Port Economic Development Partnership Program is a new initiative that will cost $962,435
to implement in 2016. The Port property tax levy will be used to support the initial 2016 grant
program.
Lifecycle Cost and Savings 
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.
STRATEGIES AND OBJECTIVES 
This project supports the Century Agenda vision of adding 100,000 jobs through economic
growth led by the Port of Seattle. Grant funds will be distributed to 38 city partners in King
County so a larger team is working to create middle class jobs within the region. Through
purposeful contracts with local governments, the Port can extend its economic development
reach to all parts of King County.
Creating a Port 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 new 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. 



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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 19, 2016 
Page 5 of 6 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Delay action until October 
Cost Implications: Alternative 1 would cost nothing. 
Pros: 
(1)  It would be good to see what all the cities are doing before we make numerous
individual commitments 
(2)  A later deadline gives cities more time to develop their initiatives and complete
their partnership grant applications.

Cons: 
(1)  The Port may not know what every city intends to do with partnership funds until
October and the comprehensive view of program impacts  still may not be
completely clear 
(2)  The Century Agenda's success depends in part on teamwork.  Without active
economic development partnerships with King County cities the Port may not
realize Century Agenda aspirations and goals. 
This is not the recommended alternative. 
Alternative 2  Have each city present its proposed partnership initiative to the Commission as a
basis for contract approval.
Cost Implications: If the Commission approves (or declines) each city project it is difficult to
pinpoint overall costs for the program. At the most, the cost would still be approximately
$962,000 annually. 
Pros: 
(1)  Allows the Commission to understand and approve each partnership project 
(2)  Builds rapport between applicant cities and the Port Commission 
Cons: 
(1)  It may be unwieldy to schedule 38 cities into Commission meetings 
(2)  This process will likely create delays in overall project implementation 
This is not the recommended alternative. 



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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 19, 2016 
Page 6 of 6 
Alternative 3  Approve partnership agreements for 3 cities that are ready to implement
economic development projects 
Cost Implications: The cost of these agreements is $ 132,350. If the Port entered into agreement
with the remaining 26 cities, the program would cost approximately $962,000 annually (not
including staff time) 
Pros: 
(1)  Taking action on these agreements today is consistent with process timelines staff
shared with cities at application workshops and in program literature.
(2)  Supporting agreements with 3 cities allows these jurisdictions to start work on their
economic development initiatives right away as these projects are time sensitive.
Cons: 
(1)  It will be hard for the Commission to see how the broader grant program is being
implemented when contracts are approved over several Commission meetings 
(2)  It will also be harder for the Commission to understand details within specific city
applications if they are approved in batches under a single Commission agenda
item.
This is the recommended alternative. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
June 14, 2016 - The Commission authorized the establishment of the Economic
Development Partnership Program. 
August 23, 2016  The Commission approved nine city applications in the amount of
$294,335. 








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