ITEM NO: ______9a_Supp_______ 
DATE OF MEETING: February 14, 2013





Auburn City Hall 
February 14, 2013

Challenges and Opportunities 
Goals and needs of warehouses/distribution centers and
manufacturing in the Kent-Auburn Valley 
Funding for transportation and other infrastructure needs 
Incentives for and obstacles to business expansion 
Government policies that foster or discourage growth 
What policies and actions can the state, King
County, the Port and other agencies can take to
support this major economic resource?

Kent/Auburn Valley 
Second largest manufacturing cluster on the West
Coast. Companies include Boeing Space and
Defense, Blue Origins Aerospace, Flow
International. 
Fourth largest warehouse and distribution center
in the United States. Logistics companies include
Expeditors International, Air Sea America, Ceva 
Logistics. 
Also is a distribution center for retailers including
REI and Starbucks.
Total Warehouse Space 
2010: 105,308,039 Sq. Ft. 
2012: 105,149,204 Sq. Ft. 
Total Vacant Space 
2010: 8,539,014 (rate = 8.1%) 
2012: 6,820,319 (rate = 6.0%) 
All space available for 
use as an FTZ facility.

Connection to I-5 Corridor and Primary Rail
Corridors for Regional and National Trade 


The Kent/Auburn Valley is a vital component
of our regional truck freight routes as well as
our national rail corridors. It is vital for both
in-state cargo and discretionary cargo to the
Midwest distribution points.

Streamlined Sales Tax Issue 
Previously, local sales tax was received by the municipality where the source of
the product was shipped or delivered. For example, if a customer in Issaquah
buys a couch from a retailer in Seattle, and that couch is shipped to the
customer from a warehouse in Kent, Kent would have received the local sales
tax revenue on that sale. 
Under the destination-based sales tax enacted in 2008, local sales tax now
would go to Issaquah. This change in sales tax collection primarily affects
retailing businesses that deliver products to customers, either directly from
their stores or from warehouses. 
This lowers the amount of sales tax collected by cities in the Kent/Auburn
valley, which affect their ability to pay for transportation maintenance and
improvements, despite the fact that freight shipments of those same goods are
a major source of wear and tear on those same roads that need the
maintenance, repair, or improvement.