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Item No.: 7c_Attach_1 Meeting Date: September 8, 2015 PORT OF SEATTLE ECONOMIC DEVELOPMENT DIVISION BUSINESS PLAN August 31, 2015 COMMITMENT: "We stand ready to get to The Port of Seattle creates economic opportunity for all, stewards work, contribute resources our environment responsibly, partners with surrounding and join the teams that communities, promotes social responsibility, conducts ourselves pursue these initiatives" transparently, and holds ourselves accountable. We will leave Seattle Port Commission succeeding generations a stronger port. Excerpt from Century Agenda DIVISION MISSION: To implement the Port of Seattle's Century Agenda creating quality jobs and driving economic prosperity throughout Washington State. DIVISION VISION: The Economic Development Division will implement initiatives that position the King County region for economic success: Organize and implement targeted efforts to raise the Port's and the region's image as a business location; Develop real estate projects that trigger public/private investment and job creation; Identify incubator and economic development projects where the Port's investment could trigger public/private investment, job creation, and return short and long term value to Port of Seattle operations (ex. boat building collective, etc.); Implement workforce development projects that support the Port's key sectors (ex. Airport Maritime, Manufacturing, and Construction); Increase international visitor traffic to the region through targeted tourism promotions; and Support and develop small business enterprises that can partner with the Port on public works projects, concession operations and other goods and services needs. The Port of Seattle's Economic Development Division will also manage many of the Port's key properties including our Pier 69 Headquarters. The Port is already recognized as a significant driver of regional economic growth. Successful implementation of this plan will bolster the Port's reputation as a statewide economic development engine. This will not happen overnight. Economic development is a long term investment. We are confident that this plan will produce some short term successes but also realistic that newer initiatives may take several years before they generate tangible economic impacts. It is also important to recognize that economic development is a team sport. The Port does not have a franchise on economic development and we will not meet Century Agenda goals unless we work effectively with public and private partners in King County and throughout Washington State. 1 ECONOMIC DEVELOPMENT DIVISION PRIORITY GOALS AND OBJECTIVES GOAL: TANGIBLY SUPPORT PUBLIC AND PRIVATE INVESTMENT PROJECTS THAT CREATE NEW JOBS AND GENERATE NEW TAX REVENUES FOR THE PORT AND ITS LOCAL GOVERNMENT PARTNERS IN KING COUNTY AND WASHINGTON STATE; Objective: Organize and implement targeted efforts to raise the Port's and the region's image as a business location Performance Measure Performance Target Actions Organize and Generate leads from 80+ Facilitate discussions with partners to implement a expanding businesses: develop coordinated marketing plan by Q3 cooperatively funded Participate in 2016: and managed select prospecting Match port contributions towards marketing initiative missions, trade initiative on a 1:1 basis; that generates interest shows, and Formalize partner/marketing from expanding pertinent industry alliance staffing plans businesses interested events Develop tracking and performance in Port properties or Host 8 measures to help manage and coop partners' facility prospective firms evaluate marketing initiative. options. on site selection Implement plan between Q3 2016-2017 tours of the region Objective: Incubate and accelerate businesses that add short and long term value to Port of Seattle operations Performance Measure Performance Target Actions Evaluate status, A complete inventory of Develop inventory of incubators and location, and extent of incubators and accelerators within Puget Sound: current accelerator accelerators within the Location and incubator Puget Sound region by Focus initiatives in King Q2 2016 Results County to discern Future plans whether and how the Recommendations Port could accent small regarding specific Port Identify options for Port investments or business formation and incubator/accelerator initiatives that support existing or new growth within the projects and investments incubators/accelerators. region by Q3 2016 2 Evaluate broader Develop an inventory of Develop inventory of incubators and incubator and incubators and economic economic development projects in economic development projects Washington state development project within WA State by Q2 Location investment options 2017 Focus with Port, ADO and other economic Results Provide development partners Future plans recommendations to discern how the Port regarding specific Port could support business incubator and economic Identify options for Port investments or formation and growth development projects initiatives that support promising throughout WA State and potential incubators or economic development investments projects adding jobs and value back to Port by Q3 2017 of Seattle operations. GOAL: U SE OUR INFLUENCE AS A PORT TO DRIVE COMPETITIVENES S OF KEY INDUSTRY CLUSTERS THROUGH WORKFORCE DEVELOPMENT AND THE DEVELOPMENT OF EFFECTIVE SMALL BUSI NESS SUPPLIER NETWORKS. Objective: Increase workforce training to improve placement and wage progression opportunities in Airport, Maritime, Manufacturing and Construction industries Performance Performance Target Actions Measures Implement a regional Airport Employment Center: OSR to help participate in RFP process, strategy that supports Increase workforce oversee contract compliance, metrics, quality jobs and development services to forecasted outcomes and review of training opportunities meet Airport growth. reported outcomes to support adjustments to ensure a pipeline of 1,500 job placements to the model and/or contracts. qualified workers in 410 individuals will attain Port sectors. job readiness and core employment skills Completion of sectoral Career Pathways roadmap Increased employer participation (time $) Leverage career pathways training through partnerships 3 Expand workforce Obtain CEO and Commission approval for development services in expanded strategies Maritime, Construction, and Develop/manage RFP process(s) to select Manufacturing in place by providers to implement strategies Q3-2016 Stakeholder Engagement to Support Formal Collaboration and Partnering (Multi-agency, multi-institution, employer) Manage program design & implementation Objective: Increase the Proportion of Funds Spent by the Port with Qualified Small Business Firms on Construction, Goods and Services to 40% of the Eligible Dollars Spent Performance Measure Performance Target Actions Work with CPO and Division leadership Increase small business throughout the Port to establish goals for Implement the participation including small business utilization. updated Port's small M/W/DBE in 2016 to 33% business program so it 2017 to 35% 2018 to Work with the external small business aligns with Century 36% 2019 to 38% 2020 to stakeholders for comments/suggestions Agenda metrics. 40% Implement expanded program by Q1-2016 Obtain CEO approval by Q3-2015 Implement a race Propose the goal to the FAA in Q3-2015 and conscious DBE program seek FAA approval by Q4-2015 Implement by Q1-2016 for federally assisted Coordinate with CPO to update/amend all projects (DBE program) relevant documentation (solicitation documents and contracts) Implement "PortSBE Develop the small business accelerator Support the capacity Generator" a small structure by Q3-2015 and implement in Q4- development of at least business accelerator 2015 15 small business firms program as supported annually by Commission. OSR to coordinate with CPO on said Publicly promote the updates updated opportunity Quarterly Ensure that information is distributed listings to small and through relevant community organizations M/W/DBE Businesses that support small business 4 GOAL: AGGRESSIVELY USE THE PORT'S REAL ESTATE ASSETS TO DRIVE JOB CREATION AND SUPPORT KEY INDUSTRY CLUSTERS. Objective: Meet 2016 Financial Targets Performance Measure Performance Target Actions Economic Net Operating Income of Continually monitor potential risks to Net Development Division ($x.xxx) million at Operating Income 2016 Net Operating 12/31/2016 Develop plans to mitigate or offset Income (NOI) Portfolio & Asset potential losses resulting from these risks Management NOI ($x,xxx) Central Harbor Management Group ($x,xxxK) Conference & Event Centers $xxxK Real Estate Development & Planning NOI ($xK) Eastside Rail NOI ($xK) Environmental Remediation Liability ($.xK) Objective: Maintain occupancy levels and rental rates at or favorable to the broader market Performance Measure Performance Target Actions Occupancy of Year-end occupancy rate Implement an ongoing leasing and Commercial Buildings will be 90% or better marketing strategy for each property that at year-end 2016 includes recommendations for: Marketing Asking rates based on market conditions Concessions (i.e. improvement allowances and rent abatements) Level of maintenance Capital improvements Utilization of outside broker 5 Objective: Generate New Revenue By Increasing Property Utilization Performance Measure Performance Target Actions Generate additional Increase advertising Analyze benefit of third party advertising in revenue in Bell Street revenue appropriate locations in the garage. Garage Increase usage Develop marketing plan and implement as appropriate. Continue mitigating Minimize impact to NOI Collaborate with Maritime Division in impact of cruise planning for cruise expansion. terminal expansion at Identify impacts, develop new revenue Pier 66. opportunities and mitigate risks to existing contracts. Develop plan to refresh Preliminary plan Benchmark competitive facilities BHICC to align with completed by end of Develop design, project cost, and schedule completion of 2016. for 3-5 year capital project. waterfront transportation projects (+3-5 years) Develop Plan with Develop a strategic framework to guide: comprehensive real recommendations real estate acquisition; estate development completed by Q2 2016 Property disposition; strategic plan Asset management; and Investment decisions. Support Airport's goal Lease revenues of $2.8 Properties in Burien: to grow annual million per year by end of Northeast Redevelopment Areas 2 and 3: revenues from leasing 2018 Complete design and infrastructure Airport property to Approve or disapprove planning using FAA pilot program $5.1 million per year potential deals; secure funding from 2016-2018. by the end of 2020 commission approval as Secure Commission approval of a (Objective 3). needed ground lease to a developer by end of 2016 Coordinate entitlement permitting work with a development by end of 2016 Properties in Des Moines: Des Moines Creek Business Park (87 acres): Monitor completion of Phase 1 improvements by end of Q1 2016 Finalize and execute Phase 2 ground lease to support the FAA regional office by end of Q1 2016; monitor completion of Phase 3 6 improvements (Q1 2016-Q3 2017) Des Moines Creek Business Park 2 (17 acres) Collaborate with the City of Des Moines to prepare redevelopment plans and consummate necessary land swap by the end of 2016. Properties in SeaTac: Des Moines Creek Business Park 3 (29 acres): Initiate conceptual planning by the end of 2016; prepare a redevelopment plan by end of 2017. Objective: Acquire or Dispose of Land and Real Property as Circumstances Warrant Performance Measure Performance Target Actions Acquire or dispose of Analyze individual Continuously review assets and implement assets as properties/facilities and long term asset management strategies circumstances warrant recommend strategies Objective: Maintain and operate Pier 69 Assets Performance Measure Performance Target Actions Effectively manage Pier 69 Facility Condition Ensure that preventive and predictive deferred maintenance Index (FCI) is .07 or maintenance tasks are identified, optimally at Pier 69 below scheduled, and performed with quality FCI is calculated by workmanship dividing the cost of deferred maintenance by the current replacement value of the facility Successful planning P69 Beam Provide influential and decisive leadership and execution of Rehabilitation: to ensure that projects are correctly capital improvement Budget: $1.6 2 MM defined, scoped, and delivered on time and and expense projects Completion by Q3 within budget. 2016 P69 DDC System Modernization: Budget: $745K Construction completion by Q3 2017 7 GOAL: INCREASE INTERNATIONAL VISITOR TRAFFIC TO THE REGION AND INSTITUTE A SMALL COMMUNITIES TOURISM GRANT PROGRAM. Objective: Make Sea-Tac Airport the West Coast "Gateway of Choice" for international travel Performance Performance Target Actions Measures Number of tour Increase UK tour Aggressively pursue product development products featuring our products featuring the and joint promotion of the destination in destination in the UK destination by 10% to the UK and other shared 126; increase all other Develop strategic marketing plan with Visit international markets markets by 10% Seattle for the 4 shared markets, and track with Visit Seattle (partnership with Visit product development Seattle) Advertising- Increase media coverage Aggressively pursue travel trade and equivalency of earned year over year by 5% in consumer media coverage media as reported by the UK and in shared Host international media in the destination international reps markets Produce regular press releases, (2014= $3m in UK; $27m newsletters, social media and special event across the 4 other shared opportunities in international media markets) markets Attract new Identify and pursue at Research and identify international Meetings/Incentives least one "MICE" opportunities for the business meetings travel to the (Meetings/Incentives) trade destination program from Meet with and pursue MICE planners in international tourism international markets markets Invite partnership with local entities (i.e. Bell Harbor International Conference Center) Objective: Double the economic value of cruise traffic to Washington State Performance Performance Target Actions Measures 8 Percentage increase in Increase international With cruise line, train sales staff of key reported sales of cruise and stay products international tour operators cruise/stay packages sold by 5%, based on Provide collateral and sales training tools with tour operators 2016 program Objective: Maintain the Port's Leadership Role in the Tourism Industry and in Economic Development in the Region Performance Performance Target Actions Measures Establish first tourism Grant program Develop and administer grant program, grant awards developed and first targeted for Washington awards in 2016 communities/entities promoting mutually beneficial tourism programs Participation by in- Increase in-kind Actively develop relationships with tourism state tourism partners contributions by 5% ($1 entities across the state, from Destination in the Port's tourism million was received in Marketing Organizations to individual program, which 2014; 2015 numbers will lodging, restaurants and attractions represents avoided be available at year's end POS costs to set the 2016 target) Invite participation in in-kind opportunities and provide media coverage and tour product development 9 APPENDIX Division Organizational Chart Page 11 Division Description Page 12 Division Summary Goals & Outcomes Chart Page 13 Division Budget Page 14 Economic Snapshots Pages 15 Business Assessment Pages 15-17 Challenges & Opportunities Pages 17-20 LINING UP FOR JOBS AT HANFORD QUALITY JOBS = ECONOMIC DEVELOPMENT 10 .3823 mm 5:2: :23: mnozog >333 m. womangm >cmc. 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The team also identifies and evaluates new opportunities outside the Port's current portfolio and completes other transactions related to Port assets. Portfolio & Asset Management Leases, markets, and manages the Division's portfolio of conference, office, retail, commercial, and industrial properties and works to enhance the value of the Division's assets through strategic asset planning and repositioning. This business unit will also lead the asset management efforts related to the Eastside Rail Corridor. It is organized into two groups: Central Harbor Management Group manages markets, leases and plans for Economic Development Division assets located from Terminal 91 to Pier2/CEM in West Seattle. This includes various retail, office and industrial properties, the conference and event centers, and the Eastside Rail Corridor. Lease Administration & Utilities Group processes and administers all agreements for both the Economic Development and Maritime Divisions. This includes monitoring for compliance with all agreement terms including insurance, surety, lease provisions, and amendments. The team also reads meters, processes payments, and bills customers for over 255 utility meters. Foreign Trade Zone #5 manages and markets use of the Port's Foreign Trade Zone for the benefit of businesses that import goods from other countries. Office of Social Responsibility Office of Social Responsibility (OSR) manages the Port of Seattle's efforts to promote small business growth and workforce development. OSR manages the Small Business Development and Inclusion Program; (2) the Port's Workforce Development initiatives; and (3) leads the Port's Annual Community Giving Campaign and staff voluntarism efforts. Tourism Development The Tourism program focuses on attracting visitors from five key direct-flight overseas markets: Japan, China, the United Kingdom, France and Germany. Tourism partners with Visit Seattle and the Washington Tourism Alliance to promote our destination through public relations and special promotions with travel trade, consumer and social media. The Port of Seattle team develops and maintains relationships throughout the state and region with the shared goal of increasing the economic benefits of international tourism. Pier 69 Facilities Management Ensures functionality of Port Headquarters by integrating people, place, process, and technology. 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According to Colliers International, Seattle's industrial market should see greater than average growth over the foreseeable future as new supply meets still growing demand, bringing the overall market to equilibrium. Rental rates increased modestly quarter over quarter and may level off in the next 12 to 18 months as new supply hits the market to meet demand. The vacancy rate is 4.8% market wide, down 1% year over year. In the Kent Valley, which includes the airport market, the vacancy rate is just 3.9%. The Seattle vacancy is even lower at 2.26%. Commercial: The local commercial real estate market continues to be dominated by the technology industry, which accounts for 90% of preleases and more than 60% of tenants currently in the market. According to Colliers International, demand continues to far outpace supply. Large block contiguous space available is limited in existing buildings, driving large users toward new construction in employee-favored, amenity-rich locations. Throughout 2015, vacancy will hold steady or even fall slightly, even as new construction begins to deliver. Global tech companies continue their expansion into the Puget Sound market growing head count, expanding operations and absorbing large blocks of space. Tourism: Tourism is the state's fourth-largest export industry according to Gross Domestic Product (GDP). Visitors to Washington State in 2014 spent $19 billion and generated $1.7 billion in local and state tax revenues. Travel and tourism supported more than 163,400 jobs and generated earnings (payroll) in excess of $5 billion in our state. International visitors spend an average of 5 times more than domestic travelers, and one job is created here at home for every 35 international visitors who visit the area, according to the US Travel Association. Since the state closed the office of tourism in 2011, the POS has held a leadership role in funding and governing the Washington Tourism Alliance, which has a budget of about $500,000 compared to competing western states with tourism budgets ranging from $7-50 million. BUSINESS ASSESSMENT: PORTFOLIO & ASSET MANAGEMENT Leasing and Marketing: The occupancy level of our Commercial Properties is currently at 90% compared to a broader Seattle market occupancy of 90.7%. We expect leasing activity to increase with improving economic conditions but will continue to wrestle with local challenges (e.g. transportation infrastructure projects) on the Central Waterfront and Duwamish. Corresponding increases in leasing activity are expected in most other submarkets. Operations and Maintenance: 15 The commercial real estate industry's focus on energy efficiency has resulted in a downward trend in total operating expenses with approximately two-thirds of the savings achieved in the utility category, underscoring an industry focus on maximizing building efficiency. A large portion of the operations and maintenance services related to the portfolio are provided through the Maritime Division's Marine Maintenance Department. Our teams will continue to work together to improve operating efficiencies, reduce environmental impact, to budget appropriately, and to manage our expenses in order to maintain and improve the value of our portfolio of real estate assets. Capital Investments/Improvements: By the end of 2016, the Portfolio and Asset Management team is expected to have overseen roughly $4.2M in capital investments being made in the commercial and hospitality properties. Investments will be reflected in sustained existing revenues and improved operating efficiencies intended to position the properties for improving market conditions and opportunity for additional revenue. REAL ESTATE DEVELOPMENT & PLANNING The group's strength lies in a relatively well-located portfolio of underutilized sites in Seattle and surrounding the airport. This is particularly significant given the increasingly smaller supply of closein , well-served industrial land available for development. The real estate portfolio is one of the Economic Development Division's best means of increasing revenue and related job creation. Disposition of the portfolio, however, will require a careful balancing of both financial and the nonfinancial objectives described in the Century Agenda and applying both a short and long-term filter to potential transactions. OFFICE OF SOCIAL RESPONSIBILITY Small business owners are beginning to feel better about the business environment, but many minority and women owned businesses still believe that they do not have access to the same opportunities, because of the lack of a more inclusive small business programs in the public agencies. Regarding workforce development, the CEO and the Port Commission have committed to support the region's pipeline of qualified workers, which in turn will support the employers in Port sectors. TOURISM The Washington Tourism Alliance (WTA) was successful in having a study plan approved by the state legislature in 2014, and enabling legislation was introduced in spring 2015. It will be resubmitted in 2016 for passage. The statewide funding goal is $7.5 million, which the initial plan said would be raised from industry sector participants in roughly this proportion: Lodging, 32%; Food service, 28%; Attractions, 13%; Retail, 19%; and Transportation, 8%. This funding plan depends also on the continued significant program funding from the international tourism partnership (Port of Seattle and Visit Seattle). On a parallel course, the Port of Seattle and the Port of Walla Walla convened a "Tourism Ports Task Force" in 2013, in order to discuss ports' potential role in statewide tourism promotion. The Task Force has concluded that Tourism Ports should contribute to the WTA, once the enabling legislation is in place. The ports' contribution would be incremental to the WTA's legislated collection and potentially other sectors would also contribute, such as tribes, wineries, etc. Ports funding method and levels have not been determined. 16 It is time now, with the increasing global visibility of Seattle, to re-energize the Port's long-standing promotion of the region as a year-round leisure destination. In addition, we are promoting a "cruise-and-stay" program that encourages international cruise passengers to extend their stay in the area. International visitors are "high value", as they spend more time and more money on vacation than domestic travelers. These "long-haul" travelers typically have up to 3 weeks of vacation, and often visit multiple destinations in one trip. This focus is a successful niche for us, generating multiple international media stories and earning a "Port of the Year" designation from a German cruise publication. Promotion partnerships with one cruise line (NCL) in Germany and the United Kingdom resulted in an increase of 26% and 40% cruise and stay bookings through Seattle, respectively, indicating that this opportunity is ripe. Our area is featured in hundreds of individual tour products among our 5 target markets, and media coverage in these markets for 2014 was valued at more than $30.6 million, a record year. (Media value is calculated by determining how much paid advertising would cost for the equivalent number of pages, inches or seconds/minutes in the same media). Additionally, partners throughout the state contributed 1 million in in-kind services to support our program. CHALLENGES AND OPPORTUNITIES: PORTFOLIO & ASSET MANAGEMENT Commercial Properties Opportunities - Improving Revenue: The current real estate market appears to be trending toward continuing recovery which suggests more opportunities for improving future revenue. Challenges - Improving Revenue: Having experienced high vacancy rates over an extended period, landlords of commercial real estate will continue to aggressively pursue tenants looking for commercial space. Wellpositioned and maintained properties that offer attractive amenity packages more readily benefit from improving market conditions. Compliance with legal, financial and regulatory aspects of public entity ownership of real property can result in having a less competitive edge than the private sector in the commercial real estate market (contracting procedures, security deposit requirements, and limited flexibility in negotiations). This is likely to be reflected in achievable lease rates at the lower end of the market range and/or lengthier vacancies through missed opportunities. Locations of several properties within the portfolio provide only limited amenities such as public transportation, shopping, dining, walking trails, etc. Updating and refurbishing aging infrastructure will require forward planning and capital investment. Improving operating efficiencies in properties with aging infrastructure and implementing energy conservation improvements will involve forward planning and capital investment. There continues to be concern with local businesses that will be affected by the Alaskan Way Seawall Project. Perception in the market is that the disruption from the ongoing work currently 17 underway on the waterfront will continue to negatively affect businesses along the entire waterfront for the next several years with the following potential impacts. Loss of traffic capacity and parking, commute time congestion Walking access is constrained, impacting tourist activity Customer, public, employee and supplier access to businesses are restricted and congested Negative impact to seasonal business volume from both the physical and perceptual blockages Negative impact of construction activity (i.e., noise, congestion, muck) Loss of key infrastructure on the waterfront that serve the public and customer needs Potential tenant's employee access to waterfront office space may be impeded Limited shopping, activities, and dining choices for employees of potential office tenants Public and potential tenants may likely avoid the waterfront altogether No public transportation along Alaskan Way The multiple organizational changes in progress and more coming make it difficult to continue process improvement and performance metrics development with significant unknowns. The Northwest Seaport Alliance and Surface Water Utility both present potential for many system configuration challenges, changes to various reports, SharePoint workflow design, and support staff assignments. Until more detail has been developed, we are proceeding to analyze the most likely outcomes in order to be prepared for implementation in a timely manner when the organization structures have been finalized. Conference & Event Centers Opportunities: Continued Investment The rebuilding of the Seattle Waterfront over the next few years presents a distinct opportunity to leverage historical success and iconic heritage to update and refresh the Bell Harbor International Conference and Event Center, the Maritime Event Center and the World Trade Center Seattle in anticipation of renewed regional and international interest. Leveraging Paul Schell Center The renaming of Bell Street Pier provides another opportunity to leverage on ongoing investment in the facilities at Pier 66. Additionally, renaming the entire complex at Pier 66 would also greatly enhance the visibility and search profile of the Conference Center and the cruise terminal. Challenges: Hotel room supply Seattle is an increasingly popular destination and hotel room supply is currently down thereby limiting the ability to leverage good rates for out of town conference business. Increasingly short lead times in the market There is a continuing trend toward "just-in-time" event planning and the shortening of lead time for events creates challenges in forecasting and logistics. 18 Aging facilities - Updating and refurbishing aging infrastructure will require forward planning and capital investment. Competitive marketalthough no new facilities are planned for 2015, a number of event space venues have recently opened or have been remodeled in the past year to be more attractive (the Motif, the (Marriott) Renaissance Hotel, the Westin Hotel, the Chihuly Garden and Glass, the Conference Center at the Washington State Convention Center, and MOHAI). Schedule conflicts - Cruise activity and departure times often conflict with opportunities for planned events and has a negative impact on event opportunities. Parking capacity at Pier 91, Smith Cove Conference and Event Center, is very limited and inconveniently located. Also, transportation options to the site are limited. The prospective expansion of the cruise program at Pier 66 may constrain event operations. REAL ESTATE DEVELOPMENT & PLANNING Opportunity: Relatively large portfolio of underutilized land, some of which can be positioned for disposition with minimal investment. Opportunity: Current market conditions appear to be fairly favorable given the overeall strength of the regional and national economy. Challenge: Market conditions are constantly in flux and ultimately drive the value that can be obtained for any particular site. Challenge: Some of the sites in the portfolio have encumbrancesboth physical and regulatorythat constrain development. OFFICE OF SOCIAL RESPONSIBILITY Small Business Challenges How best to respond to the under-representation of minority and women in port contracting, as documented by the 2014 disparity study. How to ensure the accurate collection, tracking and reporting of participation by ethnicity in Port business opportunities. Develop an effective rebranding of the Port's Small Business Program to "Small Business & Inclusion Program". Small Business Opportunities Recommending procurement policy changes in response to the results of the disparity study. Rebranding and refreshing the Port's Small Business Program to "Small Business & Inclusion Program" to ensure broad appeal and participation. Coordination with the Airport Minority Advisory Council (AMAC) and Port teams of a regional conference in 2016 for small business opportunities at the airport in construction, professional services, purchased goods and services and the ADR Program.. 19 Workforce Development Challenges How to maximize the Port's legislative authority and funding available for workforce development. How best to identify other sources of Expansion Funds Levy, General Fund, Tenant Charges, Contractor Labor Hour Charges. Draft resolutions needed to support/enable new strategy. How to support the Commission's Quality Jobs Strategy. Workforce Development Opportunities The Port Commission has publicly expressed an interest in the expansion of the workforce development strategy. The CEO has expressed support in continued Port investments and in the program expansion. Source(s) of Expansion Funds Levy, General Fund, Tenant Charges, Contractor Labor Hour Charges. Resolution as needed to support/enable new strategy. Quality Jobs implementation, enforcement, and impact measurement. TOURISM Opportunity: Build on "cruise-and-stay program" by investing in joint promotions with cruise lines and tour agencies, and target cruise media for coverage, focusing on the United Kingdom and Germany as top cruising markets in the world. Opportunity: Develop, build and re-invigorate off-season programming for targeted markets, partner with top-producing tour agencies and key media for promotion. Opportunity: Develop and execute grant program to further encourage partners in King County, Puget Sound and the state to invest in tourism promotion. Challenge: Constraint from growth due to lack of foundational state funding and Port of Seattle /Visit Seattle funding that has not even kept pace with inflation and currency values. 20
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