ITEM NO.    6e
DATE OF 
MEETING April 9, 2013 

THE INDUSTRIAL DEVELOPMENT CORPORATION 
OF THE PORT OF SEATTLE 
NOTICE OF A SPECIAL MEETING 

A Special Meeting of the Industrial Development Corporation of the Port of Seattle will be held on
Tuesday, April 9, 2013, in the Commission Chambers, Pier 69, 2711 Alaskan Way, Seattle
Washington,, Washington, during a recess of the Port of Seattle Commission Regular Meeting,
which convenes at l:00 p.m. The Agenda includes: 
1.  Approval of the proposed minutes of the Industrial Development Corporation
of the Port of Seattle Special Meetings of March 6 and September 11, 2012. 
2.  Approval of the Industrial Development Corporation of the Port of Seattle
Board of Directors and Officers for 2013. 
3.  Review of the Annual Report for the Industrial Development Corporation for
year ending December 31, 2012. 

Adjournment of the Annual Meeting of the Industrial Development Corporation of the Port of
Seattle.

INDUSTRIAL DEVELOPMENT CORPORATION AGENDA 
Item No.        1 
Date of Meeting    April 9, 2013 
DATE:        March 11, 2013 
TO:          Tay Yoshitani, Chief Executive Officer 
FROM:       Diane Campbell, Financial Analyst III, Corporate 
SUBJECT:      Approval of the Proposed Minutes of the Industrial Development Corporation
of the Port of Seattle Meetings of March 6, 2012, and September 11, 2012 
ACTION REQUESTED: 
Request Board approval of the proposed minutes of the Industrial Development Corporation of the
Port of Seattle meetings of March 6 and September 11, 2012. Draft minutes have been circulated to
the Board of Directors and approved minutes will be posted to the Port's website.

INDUSTRIAL DEVELOPMENT CORPORATION AGENDA 
Item No.        2 
Date of Meeting    April 9, 2013 
DATE:        March 22, 2013 
TO:          Tay Yoshitani, Chief Executive Officer 
FROM:       Diane Campbell, Financial Analyst III, Corporate 
SUBJECT:      Election of Officers 
REQUESTED ACTION: 
Request Board approval of the Industrial Development Corporation of the Port of Seattle Board of
Directors and Officers for 2013. 
BACKGROUND: 
In accordance with the Bylaws for the Industrial Development Corporation of the Port of Seattle,
the following is a list of the Board of Directors and Officers for the Corporation: 
Tom Albro, President 
John Creighton, Vice President 
Bill Bryant, Assistant Secretary 
Open pending selection, Secretary 
Courtney Gregoire, Director 
"Section A. Number andQualifications. The officers of the Corporation shall be the same as the
officers of the Port Commission and such other officers as may be determined by the Board of
Directors from time to time to perform such duties as may be designated by the Board of Directors."

INDUSTRIAL DEVELOPMENT CORPORATION AGENDA 
Item No.        3 
Date of Meeting    April 9, 2013 

DATE:        March 22, 2013 
TO:          Tay Yoshitani, Chief Executive Officer 
FROM:       Diane Campbell, Financial Analyst III, Corporate 
SUBJECT:      Industrial Development Corporation Annual Report for 2012 
SYNOPSIS: 
The Industrial Development Corporation of the Port of Seattle, also known as IDC, was established
in 1982 pursuant to Revised Code of Washington (Chap. 39.84). The IDC is a special purpose
government with limited powers and was established for the purpose of facilitating industrial
expansion through tax-exempt financing by providing companies with access to the tax-exempt
credit market through the facilities of the IDC.
Any company with a project that qualifies for tax-exempt financing and qualifies under RCW 39.84
and IDC policy may apply for IDC financing. The Port is not the lender and cannot lend credit or
give money to the IDC. Debt issued by a company through the IDC is the sole responsibility of the
company and is always non-recourse to the Port and to the IDC. Bond proceeds go directly to the
company borrowing through the IDC. The companies pay their debt service (principal and interest)
to a trustee. 
Any city, county or port in Washington state may establish an IDC, and a number of other
jurisdictions have done so, including King and Pierce Counties; the cities of Seattle, Auburn,
Redmond and Kent; and several other ports.
An annual IDC fellowship program made 21 awards from 2001 to 2011. The program offered one
or more fellowships to eligible Port employees who wished to improve their skills to pursue the
"economic development" core mission of the Port. While the program ended in 2011, and because
the recipients have five years to spend the award, the IDC reserves balance, currently $28,578,
represents the unspent balances of the fellowships. 
The IDC is governed by a board of directors comprised of the members of the Port Commission;
accordingly, both the IDC Board and the Port Commission must approve any IDC bond issue. The
IDC Board meets at a minimum once a year during a Commission meeting to elect new officers and
review the IDC's annual financial results. 
ANNUAL REPORT SUMMARY: 
Attached are the financial statements of the IDC. The IDC had assets totaling $261,304 at year-end
2012. Total income of $ 167,759 came primarily from a Delta Air Lines, Inc., application and
customer fees for refunding the Northwest Airlines Corp bonds.  Administrative expenses of
$11,808 were also incurred.

STATUS OF IDC BONDS: 
At the end of 2012, there were three companies with outstanding IDC debt totaling$82,725,000, 
and they are shown in the following table: 
Company                  Outstanding Debt (12/31/2012)  Maturity Date 
Crowley Marine Services                   $ 8,700,000         2021 
Sysco Food Services of Seattle, Inc.                8,000,000          2025 
Delta Air Lines, Inc. (1)                         66,025,000          2030 
TOTAL                      $ 82,725,000 
(1) Previously Northwest Airlines Corp. (NWA). NWA merged with Delta Air Lines, Inc. (Delta) in 2008. NWA bonds refunded
with Delta bonds, October 2012. 
MANAGEMENT DISCUSSION: 
The IDC collects customer fees from the companies, based on a customer fee rate and their annual
debt service. The fee can be paid annually or a one-time lump sum paid at the time the company
issues bonds, and is calculated using the present value of debt service over the life of the bonds.
Annual, on-going customer fees are collected from Sysco and Crowley Marine Services. Delta 
Airlines made a one-time lump-sum payment in 2012 for refunding the Northwest Airlines bonds.
Customer fees in 2012 includes Delta'sone-time lump-sum fee of $164,655. Since the other two IDC
companies' debt is variable rate, the annual ongoing customer fee fluctuates with interest rates. Over
the last two years, this amount has been relatively small, averaging $80, due to the low interest rate
environment. T he estimated customer fee for 2013 is projected to be close to that average, $80. 
IDC assets are invested in the Port's investment pool. The IDC's allocated interest income from the
pool in 2012 was $1,513. The investment income for 2013 is projected to be higher, due to a higher
IDC fund balance. 
Expenses totaled $11,800, are primarily administrative, and are related to Port's staff time working on
the NWA/Delta bonds refunding. Expenses anticipated for 2013 are audit expenses. The IDC is subject
to the Washington State Auditor process, an audit that happens approximately every three years. The
last audit expense in 2010 was $3,655, and covered the time period 2007 to 2009. 
The IDC's charter permits its funds to be transferred only to the Port. Under an amendment to RCW
39.84.130, funds of the IDC that are not otherwise encumbered for the payment of revenue bonds and
are not anticipated to be necessary for administrative expenses of the IDC may be transferred to the Port
to be used for growth management, planning or other economic development purposes. In order to
transfer funds, the Board of Directors of the IDC needs to adopt a resolution authorizing the transfer.
Any transfer of funds would reduce the assets of the IDC and the interest earnings on these assets. 
MINIMUM FUND BALANCE RECOMMENDATION: 
Staff recommends that the IDC maintain the current balance of $261,184 to ensure adequate investment
earnings to fund annual operating expenses. The low interest rate environment is expected to result in
income less than the anticipated operating expenses due to the costs of the triennial audit.

INDUSTRIAL DEVELOPMENT CORPORATION
OF THE PORT OF SEATTLE
BALANCE SHEET
December 31, December 31, December 31,
2012      2011      2010

ASSETS
Cash and Cash Equivalents            $ 261,184        $ 114,285        $ 280,250 
Accounts Receivable                     120       116        64
TOTAL ASSETS               $ 261,304      $ 114,401      $ 280,314 

LIABILITIES AND EQUITY
Economic & Trade Fellowship Reserves    $ 28,578       $ 37,628       $ 41,624 
Accounts Payable - -    40
Equity                            232,725      76,774     238,650
TOTAL LIABILITIES & EQUITY       $ 261,304      $ 114,402      $ 280,314

INDUSTRIAL DEVELOPMENT CORPORATION
OF THE PORT OF SEATTLE
INCOME STATEMENT
AND CHANGES IN EQUITY
December 31, December 31, December 31,
2012      2011      2010
INCOME
Customer Fee                $ 166,232       $ 82    $ 97 
Investment Income                   1,513      4,181      7,224
Miscellaneous Income                    15                    678 
EXPENSE
Administrative Expense             $ 8,817      $ 628     $ 218 
Scholarship Expense -    10,000     15,000
B&O Tax Expense                 2,991 
Miscellaneous Expense - -      160 
Other Expenses:
China Trade Mission - -     45,139 
State Audit -    511   3,144 
Washington State Tourism Promotion -      155,000 - 
NET INCOME            $ 155,952     $ (161,876)      $ (55,662) 

BEGINNING EQUITY         $ 76,774     $ 238,650      $ 294,313 
ENDING EQUITY           $ 232,725     $ 76,774     $ 238,650

INDUSTRIAL DEVELOPMENT CORPORATION
OF THE PORT OF SEATTLE
STATEMENT OF CASH FLOWS
December 31, December 31, December 31,
2012     2011     2010
CASH FLOWS FROM OPERATING
ACTIVITIES:
Cash received from bond issuers       $ 166,228        $ 29    $ 134 
Cash received from Port of Seattle - - - 
Miscellaneous cash receipts                 15 - - 
Cash paid for expenses                (20,858)   (170,175)    (51,571)
Net cash provided by
operating activities                  $ 145,385         $ (170,146)          $ (51,438) 
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchase of investment securities       $ - $ - $ - 
Sale of investment securities - - - 
Interest on investments                   1,514           4,181           7,224 
Net cash provided by
investing activities                   $ 1,514       $ 4,181       $ 7,224 
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS       146,899       (165,965)   (44,213)
CASH AND CASH EQUIVALENTS
Beginning of year                 $ 114,285        $ 280,250        $ 324,464 
End of year                    $ 261,184        $ 114,285        $ 280,250