Economic Development Division 



2019 Business Plan and Budget
Development Preview

Overview 
Key Budget Timelines 
Situational assessment 
Alignment with Century
Agenda/Long Range Plan 
Economic Development
Priorities for 2019 
2019 Operating and
Capital Budget Needs 
Maritime Cluster Positioned for Growth: 
The global 'Ocean Economy' is valued on a conservative basis by the Organization for Economic 
Cooperation and Development (OECD) at $1.5 trillion (2010) and growing to $3.0 trillion by 2030 

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2019 EDD Budget Timeline 

2019 Business             BudgetBudget            Budget BriefingBudget            First Reading &First Reading &         2nd Reading &2nd Reading &
Plan and CIP            DevelopmentDevelopment             Briefing                 Public HearingPublic Hearing         Final Passage ofFinal Passage of
Development             Briefing Briefing                                for 2019 Budget               for 2019 Budget         2019 Budget 2019 Budget 
(May/June)                  (July 10) 
(July 24)                       (Oct 9) (Oct 9)                  (Mid-November) (Mid-November)             (Late November) (Late November) 


Note: Detailed schedule in appendix 

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Strategy to Budget Process 
Century Agenda 
Vision                    5- 10 Years         Promote international travel
Strategic Planning              Cross Functional                                     and cruise adventures 
Evaluation                                  Promote women and minority
Gap                                  business enterprise (WMBE)
and small business growth 
Strategies and Objectives         3  5 Years 
(Long Range Plans)                              Advance equitable workforce
training within key Port
industries 
Implementation           2019 Business Plan                              Develop port properties to
Annual 
2019 Budget                                support aviation, fishing and
maritime industries 
2019 Performance Plans 

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Industry/Business Context: Real Estate 
Industrial sector still very active, rents seeing
new peaks 
On other hand, construction starts will slow
down (especially in commercial and
residential sectors) 
High occupancy rates at Port's commercial and
industrial properties (97+%) 
Multi-story warehouses will become the norm
in urban industrial areas 
Pressure on SODO and other Industrial areas. 

5

Industry/Business Context: Workforce Development 
Talent attraction/retention a top employer
issue 
The Seattle region: 
increasingly racially and ethnically diverse 
Higher housing and transportation costs
are especially impactful on low wage
workers 
Career connected learning initiatives are
especially important to tap into and train
younger generation 
Robotics, AI, Machine Learning and other
advancing technologies changing the nature
Aerospace Class 
of work 

6

Industry/Business Context: Small Business 
Finding and retaining employees is
especially challenging for smaller firms 
High cost and scarce availability of
manufacturing and commercial space 
WMBE participation in Port of Seattle
opportunities has been disparately low.
Trending: Digital payments, Block chain, Z
Gen, Cybersecurity, video 
Champions of Inclusion 

7

Industry/Business Context: Tourism 
Travel bans and international friction will
dampen United States tourism 
Washington state will likely do better and
grow slightly 
China will continue to drive global travel. 
Cruise industry growth will continue worldwide
and in the Alaska Market 
Washington State tourism promotion efforts will
increase substantially with advent of new
statewide tourism agency 
Tourism Spotlight Airport Advertising Partnership 


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Industry/Business Context: Maritime Innovation* 
Seattle Maritime Sector = low visibility and 
innovation performance compared to other local
industries 
Top business and innovation barriers: 
1.   Lack of public policy and incentives support 
2.   Workforce challenges 
3.   Understanding of the business opportunities 
Most impactful new maritime technologies: 
1.   Electrification 
2.   Ship and vessel design innovation 
3.   Marine renewables 
4.   Autonomous/underwater vessels 
Industrial space especially for small and emerging
maritime companies is particularly difficult to find in
Maritime Innovation Center 
Ballard/Interbay 

*Results from Maritime innovation center survey                                                                  9

Challenges 
Staying nimble and strategic as real estate markets change 
Maintaining high occupancy rates at Port properties (and taking
care of our assets) 
Making workforce investments that "move the needle" for key
Port industries 
Expanding opportunities for Women Minority Business
Enterprises 
Maintaining tourism growth despite international reputation 

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Century Agenda/Long Range Plan 
Drives Economic Development Division 
Century Agenda/LRP       Economic Development Priorities 
1     CA1 Objective 5              Fishermen's Terminal & Terminal 91
(Fishing & Maritime Cluster Growth)       Development (inc. Maritime Innovation District) 
2     CA 2 Objectives 6 and 9      Tourism 
3     CA 3, Objectives 10 & 11     Diversity in Contracting/Small Business 
4     CA 3, Objective 12           Workforce Training in Key Clusters 
5     CA 4, Objective 4             Industrial Land Protection and Development 
"The Port of Seattle will use its real estate, capital assets and financial capabilities to accomplish the Century
Agenda. These are tools to thoughtfully steward, rather than areas well-suited for specific 25-year goals." 

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Highest Priorities for 2019 
1.   Manage and Develop Port Real Estate Assets 
2.   Expand contracting opportunities for Women Minority
Business Enterprises 
3.   Advance workforce development initiatives especially those
focused on Career Connected Learning 
4.   Promote tourism opportunities that tie to the use of Airport
and Maritime terminals 
5.   Lead and manage unique economic development initiatives: 
Partner with King County Cities on ED Grant program 
Advance Maritime innovation center and district initiatives 

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Real Estate Management and Development 
Ground lease Des Moines Creek West property 
Complete design work on Gateway and Seattle
Ship Supply buildings and get projects through
the entitlement process 
Complete design work on Terminal 91 Uplands
light industrial buildings and get projects started
through entitlement process 
Initiate Bell Harbor Conference Center
Modernization 
Manage real estate portfolio to generate positive
NOI after depreciation and corporate allocations by
year-end 2024. 
Develop a "second 25 years" renewal,
replacement, and modernization strategy for the
HQ facility. 
Pier Two 


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Workforce Development 
Manage airport employment
office in partnership with
PortJobs 
Advance aviation career
pathway training initiative 
Invest in regional Career
Connect Learning learning
initiative 
Implement and Strengthen
Regional Construction Trades
Partnership                                    Pedro Reynaga, Harbor Operations Intern 

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Diversity in Contracting/Small Business Assistance 
Implementation of Diversity in
Contracting Policy 
Provide greater access to Port
opportunities through education,
events, and assistance 
Expand supplier diversity 
Develop tools and conduct
assessments to measure and monitor
inclusion in contracting 
Explore utilizing Port
resources to support business
incubator facilities 

15

Tourism 
Promote the cruise industry through
outreach to travel influencers (trade
and media) both domestically and in
priority international markets (UK,
Germany, China & Australia). 
Increase the value of tourism
throughout Washington 
Increase reach of Tourism Marketing Support
Program 
Enhance Airport Spotlight program 
Use WeChat airport site to serve as portal for
destinations  in Washington.                                    Norwegian Bliss Marks Arrival of Larger Cruise Ships 


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Maritime Innovation 
Continue dialogue and work with
Memorandum of Understanding 
partners who can help support and
sustain Maritime Innovation Center 
Develop operating model, business plan
and priority services 
Work with partners to support "virtual
maritime innovation center operations" 
Secure public and private funding to
support center construction and
operations 
Make fact finding trips to maritime
innovation centers to gain insights into
their operations and lessons learned                          Maritime Innovation District 

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Budget Preview 
Operating Revenues/Expenses Driven by Central Harbor
Properties 
Levy supports Small Business, Workforce, ED and Tourism
Grants 
Will likely need additional staffing to support Diversity in
Contracting program 
Will prioritize some existing funding to support long term
development of maritime innovation center 
Will develop business plan for this initiative that leverages Port
operating and capital investments 
Partners interested in developing "virtual maritime incubator" until
Port develops building(s) over next three years.

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Preliminary 2019 to 2023 Capital Program 
Spending Breakdown*          New Projects Proposed (> $5M): 
T91 Uplands Light Industrial Buildings 
Bell Harbor Conference Center Modernization 

Potentially Deferred Projects: 
T91 Uplands Light Industrial Buildings 
Bell Harbor Conference Center Modernization 
P66 HVAC Systems Upgrade 
Projects Underway   Small Projects/Fleet              WTC HVAC System Replacement 
Contingency         New Projects
Deferred Projects
*Assumes $200 million funding capacity for Maritime & Economic Development Divisions 2019 to 2023 capital spending 
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Appendix: 2019 Budget Schedule 
07/24  2019 EDD Business Plan and Budget Development Preview briefing 
09/11  Commission Budget Priorities Budget Discussion 
09/25  Central Services budget Commission briefing 
10/09  Operating division budgets Commission briefing 
10/23  Tax Levy & Draft Plan of Finance Commission briefing 
10/23  2019 Preliminary Budget document available to Commission 
10/25  2019 Preliminary Budget document available to the public 
10/30  NWSA Budget study session by Managing Members 
11/13  NWSA Budget adoption by Managing Members 
11/13  First reading of budget resolution and public hearing 
11/27  Second reading and final passage of 2019 Budget 
12/03  File the 2019 statutory budget with King county 
12/14  Publish the 2019 Final Budget to the public 

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