COMMISSION 
AGENDA MEMORANDUM                        Item No.          3b 
ACTION ITEM                            Date of Meeting    September 12, 2017 
DATE:     August 25, 2017 
TO:        Dave Soike, Interim Executive Director 
FROM:    Dave McFadden, Managing Director, Economic Development Division 
SUBJECT:  Approve Port Economic Development Partnership Applications 
Amount of this request:                 $212,610 
Total estimated project cost:            $965,000 
ACTION REQUESTED 
Request  Commission  authorization  for  the  Executive  Director  to  execute  Economic
Development Partnership Program contracts with the Cities of Des Moines, Issaquah, Kenmore,
Renton, Shoreline and Skykomish to implement local economic development initiatives for an
amount not to exceed $212,611, as detailed below. 
EXECUTIVE SUMMARY 
The following six 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 and October
Commission meetings. 
Des Moines - $30,800 
o  Support Marina redevelopment - building on the work of 2016/2017 grant 
o  Expand downtown parking study to include nighttime activity 
Issaquah - $34,500 
o  Initiate branding and wayfinding campaign which will increase tourism, attract
visitors outside the region and increase hotel stays. 
o  Chamber University    funds to be used to develop and conduct business
workshops to assist small businesses in Issaquah. 
o  Global  Passport    enhance  collaboration  with  eastside  cities  to  increase
exporting among small businesses. 
o  Website Development    update and redesign the city's website with an
emphasis on economic development opportunities and business services. 
Kenmore - $22,320 
o  Repeat the successful Business Acceleration Training Program by the Kenmore
Business Incubator that was funded by the Port in 2016-2017. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. __3b__                              Page 2 of 6 
Meeting Date: September 12, 2017 
o  Update the Commercial Land Capacity Analysis to reflect recent downtown zoning
changes. 
o  Promote Kenmore's craft brewing scene with custom designed street banners
and wayfinding signage visible to travelers on SR 522 and the Burke Gilman Trail. 
Renton - $65,000 
o  Business recruitment  increase in stability of retail businesses and reduced
number of vacant storefronts. 
o  Implement Downtown revitalization program 
o  Sunset Shines Marketing Campaign  support public art installations and tactical
place making activities. 
o  Entrepreneurial Support  provide training and assistance to encourage and
attract new businesses. 
Shoreline - $54,990 
o  Further develop the Seasound Media Campus initiative 
o  Support Home-based Business 
o  Support Ridgecrest Right of Way Improvement Plan 
Skykomish - $5,000 
o  Promote tourism opportunities by developing site specific signage for historical
and recreational sites. 

JUSTIFICATION 
In June 2016 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 Economic Development Partnership program 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 met with cities in June to discuss 2016 results and kick off the 2017 grant cycle. 
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.


Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. __3b__                              Page 3 of 6 
Meeting Date: September 12, 2017 
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. 
DETAILS 
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

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. __3b__                              Page 4 of 6 
Meeting Date: September 12, 2017 
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
inter-local 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.
Schedule 
June 26  Meeting with cities to highlight 2016 results and provide overview on 2017 program 
June 27  Public information (including web content) about Port Economic Development
Partnership Program available 
August to October 2017  Agreements negotiated and approved with King County Cities 
June 2017 to May 2018  Project implementation 
May 2017  Project evaluation 

ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Delay action until October 
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.


Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. __3b__                              Page 5 of 6 
Meeting Date: September 12, 2017 
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. 
Alternative 3  Approve partnership agreements for the three cities that are ready to
implement economic development projects 
Cost Implications: The cost of these agreements is $124,320. If the Port entered into
agreement with the other cities the program would cost approximately $965,000 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 three 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. 

FINANCIAL IMPLICATIONS 
Annual Budget Status and Source of Funds 
The Port Economic Development Partnership Program is a new initiative that will cost
approximately $965,000 to implement in 2017.  The Port property tax levy will be used to
support the 2017 grant program.


Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. __3b__                              Page 6 of 6 
Meeting Date: September 12, 2017 

Future Revenues and Expenses (Total cost of ownership) 
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.

ATTACHMENTS TO THIS REQUEST 
(1)   2016 Summary Economic Development Partnership Grant report 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
August 15  Commission authorized Executive Director to execute six city contracts
totaling $235,785 
June 27, 2017  Commission briefing on 2016 results 
November 8, 2017  Commission authorized CEO to execute four city contracts totaling
$81,770 
October 11, 2016  Commission authorized CEO to execute fifteen city contracts totaling
$411,170 
September 27, 2016 - Commission authorized CEO to execute three city contracts worth
$132,350 
August 23, 2016  Commission authorized CEO to execute nine city contracts worth
$294,335 
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. 







Template revised September 22, 2016; format updates October 19, 2016.