PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      3b 
ACTION ITEM 
Date of Meeting     August 23, 2016 
DATE:    August 5, 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:         $294,335 
Est. Total Project Cost:           $962,435 

ACTION REQUESTED 
Request Commission authorization for  the Chief Executive Officer to  execute Economic
Development Partnership Program contracts with the Cities of Auburn, Des Moines, Duvall,
Issaquah, Kenmore, Kirkland, Normandy Park, North Bend, and Redmond to implement local
economic development initiatives for an amount not to exceed $294,335, as detailed below.
SYNOPSIS 
The following nine cities have completed their partnership application and staff is recommending
the Port execute contracts with these jurisdictions. Staff has reviewed each city application and
is confident each local partnership initiative is impactful and ties to Port business interests. Other
participating cities are finalizing applications for review at the September 27 Commission
meeting. 
Auburn - $65,000 
o  Develop a business to business supply chain database to promote local business 
o  Support microbusinesses and Auburn incubator tenants 
Des Moines - $30,100 
o  Complete a pre-design feasibility study for a multi-use facility at the downtown
Marina location. 
o  Complete a market demand assessment of the Marina and downtown as
"destination locations" to accommodate future growth. 
o  Complete a parking study assessment for downtown and Marina redevelopment. 
Duvall - $7,345 
o  Update City Economic Development Vision and Plan 
o  Support "Savor Snoqualmie", a new regional tourism promotion group supported
by each Snoqualmie city. 
o  Continued branding and marketing efforts 

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
August 5, 2016 
Page 2 of 6 
Issaquah - $33,330 
o  Provide six workshops through the Chamber of Commerce for business training 
o  Create a video for business recruitment and community marketing to support existing
print materials. 
Kenmore - $21,500 
o  Provide training and technical support to companies involved with the City's business
incubator 
o  Promote the City's image for business development and tourism 
o  Build on local assets like Bastyr University, Kenmore Air, Edward State Park,
Lakepointe and Kenmore's emerging brewery district 
Kirkland - $65,000 
o  Partner with Bellevue and Redmond to promote ICT cluster growth 
o  Participate in tradeshow events to attract technology companies 
o  Provide business assistance to startup companies 
o  Prepare an engineering study to increase transient moorage at Kirkland Marina 
Normandy Park - $6,420 
o  Provide training through SBDC at Highline Community College to address small
business needs 
North Bend - $6,460 
o  Develop a series of videos to promote outdoor recreation and tourism related
businesses 
Redmond - $59,180 
o  Develop a marketing and media package that includes video, business cluster fact
sheets, print and digital brochures. 
o  Participate  in business recruitment events including D.I.C.E (Design, Innovate,
Communicate, Entertain) and the Space Foundation Symposium. 
BACKGROUND 
In June the Commission created a new economic development grant fund that provides 38 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. 


Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
August 5, 2016 
Page 3 of 6 
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
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.


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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
August 5, 2016 
Page 4 of 6 
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. 
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.


Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
August 5, 2016 
Page 5 of 6 
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. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Delay action until September 
Cost Implications: Alternative 1 would cost nothing. 
Pros: 
(1)  This provides time for Port to see what all the cities are doing before the
Commission makes 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. 

Revised March 28, 2016  pjw

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
August 5, 2016 
Page 6 of 6 
Alternative 3  Approve partnership agreements for the 9 cities that are ready to implement
economic development projects 
Cost Implications: The cost of these agreements is $ 294,335. If the Port entered into agreement
with the other 29 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 nine cities allows these jurisdictions to start work on
their economic development initiatives right away.
Cons: 
(1)  It will be hard for the Commission to contrast details of each city grant and see how
the broader grant program is being implemented when contracts are approved over
several Commission meetings.
This is the recommended alternative. 

ATTACHMENTS TO THIS REQUEST 
none 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
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. 







Revised March 28, 2016  pjw