Economic Development Division       ITEM NO: 9a
DATE OF MEETING:  July 9, 2019 



2020 Business Plan and Budget Preview

Outline 
Strategy to Budget process 
Alignment with Century Agenda/2020 Goals 
SWOT Analysis 
2020 Economic Development Priorities 
2020 Operating and Capital Budget Needs 

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2020 Economic Development Division Budget Timeline 

2020 Business             BudgetBudget            Budget BriefingBudget            First Reading &First Reading &          2nd 2nd Reading &         Reading &
Plan and CIP            DevelopmentDevelopment             Briefing                 Public HearingPublic Hearing         Final Passage of               Final Passage of
Development            Briefing Briefing                               for 2019 Budget for 2019 Budget         2019 Budget          2019 Budget
(May/June)                (July 10)                                      (Mid-November)          (Late November)
(July 9)                        (Oct 9) (Oct 8)                        (Nov 12)                       (Nov 19)


Note: Detailed schedule in appendix 

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Strategy to Budget Process 
Century Agenda 
Vision                5- 10 Years 
Strategic Planning                SWOT 
Strategies and
Objectives 
(Long Range Plans)         3  5 Years 
Implementation      2020 Business Plan 
2020 Budget            Annual 
2020 Performance
Plans 
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Century Agenda 
Drives Economic Development Division 
Century Agenda                  Economic Development Priorities 
Fishing & Maritime Cluster Growth      Fishermen's Terminal & T91 Uplands Development 
Advance Region as Tourism
Tourism Development and Grant Partnerships 
Destination 
Use Our Influence to Promote WMBE
Diversity in Contracting and Workforce Development 
Growth and Workforce Development 
Be the Greenest Port                   Industrial Land Protection and Development 

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Alignment with 2020 Goals 
Port Wide Goal                                          Economic Development Division Priority 
Operate Effective Maritime and Aviation Gateways     Support Maritime and Aviation Real Estate Needs and
Opportunities 
Execute Five Year Capital Investment Plan             Bell Harbor renovation, T91 Uplands Development,
Maritime innovation center, FT Gateway building 
Drive Regional and Statewide Economic Vitality       Tourism development, City and tourism grant programs 
Enhance Workforce Development to Support         Construction trades training, Airport employment office,
Regional Port-Related Industries                        Maritime Youth Collaborative, Career Connected Learning 
Expand Equity, Diversity, and Inclusion                 Diversity in Contracting & Workforce Development 
Be a Good Partner  Expand Engagement            Tourism development, grant programs, maritime innovation
center, workforce development, diversity in contracting 

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SWOT Analysis -- Real Estate 
Helpful             Harmful                         Strategically located properties 
Port Commission interested in utilizing RE Assets 
STRENGTHS        WEAKNESSES                    Talented interdisciplinary team 
Internal                                                                  Challenging properties (brownfields, soils, etc.) 
Long development processes 
More capacity need to deliver project pipeline 

Develop properties to support S King County 
Develop properties to support Maritime 
Use Real Estate to drive equity 
External                                                               Global uncertainty  threat of recession 
Permitting timelines and complexities 
OPPORTUNITIES        THREATS                      Loss of industrial lands 

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Real Estate Strategic Priorities 
1. Complete Bell Harbor Conference Center
Modernization 
2. Redevelop Terminal 106
3. Redevelop CEM and Des Moines Creek West
properties 
4. Implement Terminal 91 Uplands
planning/development 
5. Determine Maritime Innovation Center location 
6. Maintain 94% occupancy for Economic
Development and Maritime properties 
Pier Two 


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SWOT Analysis -- Tourism 
New Port investments (IAF, cruise terminal, etc.) 
Strengths                     Strong partnerships 
Positive reputation with tourism/travel industry 

Weaknesses                 Long lead times needed to administer grant program 
Low state funding for tourism limits leverage 

Strong Alaska cruise market 
Opportunities                  Communities outside the Puget Sound can offer
different and more affordable attractions 

Hotel availability and prices 
Threats                         Global uncertainty can impact tourism 
Overtourism 

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Tourism Strategic Priorities 
1.   Utilize Tourism Grant programs to increase the
awareness of Washington state's unique visitor
opportunities and attractions 
2.  Conduct Familiarization tours (FAMS) for the
travel media and travel trade to generate interest in
King County and Washington state's tourism
amenities and attractions 
3.  Partner with Visit Seattle and the Washington
Tourism Association to leverage the Port's tourism
investments and grant programs 
4.  Expand cruise and stay options within Washington
state to enhance the cruise industry's economic
Norwegian Bliss Marks Arrival of Larger Cruise Ships 
impacts to the region 

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SWOT Analysis -- Diversity in Contracting 
New program creates excitement 
Strengths                     Port Commission sets strong policy 
Executive Team strongly supports policy and program success 

Port staff not familiar or experienced with new program 
Weaknesses                 Bias may still exist against smaller or inexperienced firms 
No historical WMBE utilization rates - make goal setting difficult 

Strong community network 
Opportunities                  Other government agencies willing to leverage Port program 
Strong ethnic media network helps amplify program 

Retrenchment around I-200 (as opposed to I-1000) 
Threats                         Economic recession and slowdown in construction industry 

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Diversity in Contracting Strategic Priorities 
1.  Increase WMBE contracting utilization
results, especially for African American and
Hispanic businesses
2.  Advance community engagement and
partnerships to support WMBE and DBE
programs 
3.   Provide PortGen workshops/trainings to
interested WMBE and DBE businesses 
4.   Implement communication and education
programs to build external and internal
support for WMBE utilization 
5.  Work with Public Sector partners to advance
WMBE and DBE utilization 

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SWOT Analysis -- Workforce 
Port Commission strongly endorses workforce
Strengths                      development investments 
Current training investments producing results 
Current contracting processes do not align well with
Weaknesses                  non profit organizations 
Embedding diversity and inclusion within workforce
programs takes time and understanding 
New state workforce law provides opportunity 
Opportunities                  Growing regional alignment around Career
Connected Learning (and new funding) 

Maritime industry has diffuse training needs 
Threats                         Extended timeframes needed to implement
workforce initiatives on behalf of distressed
neighborhoods, women and people of color 

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Workforce Development Strategic Priorities 
1.   Support new Port Commission workforce policy 
2.  Expand construction industry training for
disadvantaged workers 
3.  Support workers and employers at SeaTac
International airport by operating Airport
Employment Center and Career Support Center 
4.   Implement aviation career pathway training
initiative 
5.   Advance Maritime Youth Collaborative (MYC) &
Aviation career connected learning initiatives 
Pedro Reynaga, Harbor Operations Intern 


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SWOT Analysis -- EDD & Innovation Partnerships 
Port Commission committed to partnerships 
Strengths                     Grant funding can advance Port priorities 
Talented team support for grants and innovation 

New programs lack clear metrics and outcomes 
Weaknesses                 Grant projects can take longer than funding cycles 
Grants drive contracts, paperwork and process 
Cities and stakeholders welcome tangible and
Opportunities                   productive economic development partnerships 
Washington can be global leader in maritime
innovation 
Lack of collaboration/innovation within Maritime
Threats                         sector 
Balkanization of economic development efforts
across the region 

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ED and Maritime Innovation Partnerships  Strategic Priorities 

1.  Implement 2020 grant program in partnership
with King County Cities 
2.  Operate maritime innovation accelerator
program to discover, promote and help advance
promising maritime ventures and startups
3.  Host maritime innovation center advisory
council meetings to ensure public and private
partners can steer and provide counsel on
maritime innovation initiatives 
4.  Organize fact finding trips to other cities and
ports that are working to advance maritime
innovation initiatives and adopt best practices 
Maritime Innovation District 



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Economic Development Division 
2020 Priority Recap 
1.   Manage and Develop Port Real Estate 
2.   Expand contracting opportunities for Women Minority Business
Enterprises 
3.   Advance workforce development initiatives focused on construction,
aviation and maritime industries 
4.   Promote tourism opportunities that tie to the use of Airport and
Maritime terminals 
5.   Drive productive partnerships through unique economic development
initiatives: 
ED Grant program (+ tourism) 
Maritime innovation center 
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Budget Preview 
Operating Revenues/Expenses Driven by Central Harbor Properties 
2020 revenues from Bell Harbor Conference Center impacted by renovation 
Implementation of GASB 87 (new lease revenue requirements) will impact how we
recognize lease revenue 
Levy supports Small Business, Workforce, ED and Tourism Grants 
Will be reducing funding for some departments/programs based on current
spending patterns (zero-based approach) 
Plan to earmark funds to support long term development of maritime
innovation center 
Supports maritime accelerator initiatives ("virtual incubator") 
Supports advisory committee meetings, fact finding trips and partnerships with
Maritime Blue 

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Preliminary Economic Development 2020 Capital Plan Highlights 
Continued work toward: 
Bell Harbor International Conference Center Modernization  
Beginning Construction Phase 
Terminal 91 Uplands Development  In Design 
World Trade Center West HVAC 
CIP projects under consideration (asset preservation): 
Pier 69 Under-dock Work 
Pier 66 Roof Upgrades 
WTCW Roof Replacement 
Note: New projects subject to funding availability 
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Staffing Resource Needs 
Staffing needs in the following area: 
Economic Development operations: 
Career Advancement Center administration 
Maritime innovation center 
Soundside Alliance support 
Diversity in Contracting/Disadvantaged Business Enterprise 
Aviation Disadvantaged Business Enterprise program staffing 
Visionary Capital Plan 
Capital planning (share resource with Maritime) 

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Detail 2020 Budget Schedule 
07/09 2020 Economic Development Business Plan and Budget Development Preview briefing 
08/13 EDD/Maritime CIP and Funding Discussion 
09/24  Central Services budget Commission briefing 
10/08  Operating division budgets Commission briefing 
10/22  Tax Levy & Draft Plan of Finance Commission briefing 
10/22  2020 Preliminary Budget document available to Commission 
10/24  2020 Preliminary Budget document available to the public 
10/29  NWSA Budget study session by Managing Members 
11/13  First reading of budget resolution and public hearing 
11/14  NWSA Budget adoption by Managing Members 
11/13  First reading of budget resolution and public hearing 
11/19  Second reading and final passage of 2020 Budget 
12/02  File the 2020 statutory budget with King county 
12/13  Publish the 2020 Final Budget to the public 
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