7c supp

Item No.:                    7c_Supp 
Meeting Date:           October 13, 2015 
Economic Development Division 
2016 Budget Briefing 
October 13, 2015

Economic Development Division 
Portfolio & Asset Management       Real Estate Development & Planning 
Harbor Marina Corp Center (T102)      Terminal 91 Uplands 
Central Waterfront                Real Estate Development Admin 
World Trade Center West 
Bell Street Garage 
Office of Social Responsibility 
Bell Street Retail Leases 
Workforce Development 
Bell Street Office Leases 
Small Business 
Terminal 34 
Pier 69 Leases 
Pier 2 Uplands and CEM            Pier 69 Facilities 
CEM 
Terminal 5 SE, Other 
Conference & Event Centers         Tourism 
Bell Harbor International Conference Ctr 
World Trade Center Club 
Smith Cove Cruise Terminal (Events) 
Eastside Rail Corridor 
Budget adjustments are made for prior years to ensure apple-to-apple comparison for 
the reorganization changes.                                                        2

2016 Budget Key Assumptions 
Commercial Properties target 93% occupancy at year-end
2016. 2015 forecasted occupancy at year-end 89% 
Bell Harbor International Conference Center revenue
down 27% from 2015 Budget and 32% from 2015 Forecast 
OSR includes funding of Airport Employment Center and
Comprehensive Career Pathways program 
Eastside Rail Corridor: Pending sale to Woodinville
assumed to close in 2015 

3

Org Revenues By Group 
Economic Development Division Only 

Incr (Decr)       Incr (Decr)
2014    2015    2015    2016  16-'15 Budget Chg  16-'15 Fcst Chg
$'s Thousands          Actual  Budget Forecast  Budget    $ %     $ %
Revenue
Portfolio & Asset Management   15,059   15,065   16,032   13,038   (2,027) -13.5%   (2,994) -18.7%
Central Harbor Mgmt Group        6,135     6,518     6,709     6,750      232    3.6%      42    0.6%
Conference & Event Centers        8,924     8,547     9,324     6,263    (2,284)   -26.7%    (3,061)   -32.8%
Foreign Trade Zone Program          0       0       0      25       25     NA      25     NA
Development & Planning       1,046     960     907     626    (334)   -35%    (281)   -31%
Eastside Rail                 12       0       7       1       1 17367%      (6)   -86%
Total Revenue          16,117  16,025  16,947  13,666   (2,360) -14.7%  (3,282) -19.4%


Revenue for 2016 impacted by construction at Pier 66 
4

Org Expenses By Group 
Economic Development Division Expenses Only 
Incr (Decr)        Incr (Decr)
2014    2015    2015    2016   16-'15 Budget Chg 16-'15 Fcst Chg
$'s Thousands          Actual  Budget Forecast  Budget     $ %     $ %
Operating Expenses
Portfolio & Asset Management   11,842   12,246   11,874   10,362    (1,884) -15.4%   (1,512) -12.7%
Central Harbor Mgmt Group        2,773     3,795     2,875     2,938      (857)  -22.6%       64    2.2%
Conference & Event Centers        7,392     7,504     7,999     6,439     (1,065)   -14.2%     (1,560)   -19.5%
Portfolio Mgmt Admin & FTZ        1,677      947     1,000      985        38    4.0%      (16)   -1.6%
Development & Planning        829     948     788   1,675     727  76.6%     887  112.6%
Eastside Rail Corridor         2,436     210     100     144      (66)  -31.4%      44   44.0%
Office of Social Responsibility    2,115    2,312    2,228    3,542     1,231   53.2%    1,314   59.0%
Tourism                  915    981    981   1,174     193  19.7%     193  19.7%
Facilities                    1,486    1,600    1,426    1,538       (62)   -3.9%      112    7.8%
Division Admin               440     419     466     405      (14)  -3.4%     (61)  -13.1%
Envir Remed Exp/Other         (3)    250      0      0     (250) -100.0%      (0) -100.0%
Total Operating Expenses     20,060   18,967   17,864   18,841     (126)  -0.7%     977   5.5%

Portfolio Management expense decrease result of lower Conference & Event Center activity due to construction at Pier 66 and lower
tenant improvement and broker fee costs at leased properties due to higher occupancy. 
Increases in Office of Social Responsibility, Tourism, and Development & Planning reflect new and expanded initiatives. Details are
provided on upcoming slides. 
2016 Expense Budget Supports Economic Development Strategic Initiatives       5

Full-Time Equivalents (FTEs) 
2015 Budget                               31.5
2015 Changes
Commercial Properties: Onsite Prop Rep Trf to Maintenance      (1.0)
P69 Facilities
Delete exempt FTE Assist Mgr Corp Facilities            (1.0)
Add non-exempt FTE Facilities Specialist                1.0
Adjusted 2015                               30.5
2016 Budget
Staff Additions:
Tourism: Program Assistant                          1.0
OSR: 1 Graduate Intern ( .25 FTE) Offset no National Urban Fellow     0.3
OSR: 4 High School Interns (each .25 FTE)                1.0
Net Change                             2.3
Proposed 2016 Budget                        32.8

Excluding addition of interns, number of FTE's flat from year to year 
6

Economic Dev Division Org Expense Budget 
Economic Development Division Expenses Only 
2015      2016     Incr (Decr)
$'s Thousands                    Budget     Budget    Change    %  Explanation
Baseline Budget
Salaries                              2,815       2,906       91   3.2%
Benefits                              1,072       1,144       72   6.7%
OPEB                     20      22     2  7.5%
Salaries & Wages to Cap, Non-op,ERL           0         0       0    NA
Total Payroll Costs                    3,907      4,072      164   4.2% Add Tourism Program Assistant, Interns
Net Payroll Exp (Nnet of to Capital,Non-op,ERL)        3,907        4,072       164   4.2%
Utilities                                     1,995         1,647       (347)  -17.4% Surface Water Utility, Water, Sewer
Contract Watchmen                   253       138     (114) -45.2% Eliminate graveyard & holiday coverage at P69
Conf & Event Op Exp, Mgmt Fee, FF&E       7,408      6,349    (1,058) -14.3% Lower activity due to cruise build out
Outside Services                        287        271       (16)  -5.5%
Travel & Other Employee Expense            194       272       78  40.6% Membership Econ Dev Council (fr Pub Affairs)
Property Rental                         644        587       (57)  -8.9% Reclass of payment to Port Jobs
Other O&M                      1,619      1,708      89  5.5%
Total Baseline Budget                16,306     15,045    (1,261)  -7.7%
Initiatives
Tenant Improve, Broker Fees,Space Plan        869        324      (545) -62.7% Higher Occupancy so less leasing activity
Office of Social Responsibility                 880       1,995      1,115  126.7% Detail on following slide
Tourism                           402       558      156  38.9% Detail on following slide
Misc Appraisals & Other Services              50         75       25  50.0%
Consulting Services - RE Strategic Plan           0        600      600    NA
Co-op Business Development / FDI             0        100      100    NA
Eastside Rail Corridor - Outside Services         210        144       (66) -31.4%
Total                               2,411       3,796     1,385  57.4%
Total Operating Expenses             18,717     18,841      124   0.7%
Envir Remediation Liability                    250          0      (250) -100.0%
Total Expenses                   18,967     18,841     (126)  -0.7%
7

Office of Social Responsibility 2016 Initiatives 
$'s Thousands
Office of Social Responsibility
'16-'15
2015 Budget   2016 Budget    Change
New Requests
1. Comprehensive Career Pathways - Strategic Investments                0        1,125       1,125
1a.  Airport Career Pathways Mapping & Strategy                    0          75          75
1b.  Airport Career Pathways Implementation (Year 1)                0         100        100
1c.   Maritime Workforce Development Initial Strategy                 0          150         150
1d.  Core Plus (High School to Industry/Post Secondary Transition        0         200        200
1e.  Trades Regional Partnership                             0         350        350
1f.   Manufacturing Industry/Truck Driving                            0           150          150
1g.  High School Intern Program Expansion (in Salaries & Benefits)        0           0          0
1h.  Program Evaluation                                   0         100        100
2. Port Jobs Six Month Contract Extension                          100          50         (50)
Continuing
Workforce Development Airport Sector                        410         450        40
Workforce Development Construction Sector                    200         260        60
Small Business Generator Program - Pilot Review                   100         100         0
Small Business Generator Program                            0         10         10
National Urban Fellowship Program                           70          0        (70)
Total                                                  880        1,995       1,115
Developing capable employees for key industries 
8

Tourism 2016 Initiatives 
$'s Thousands
Tourism
2015        2016 '16-'15
Budget      Budget      Change
1. New Requests
Tourism Grant Program                  $0         $50         $50
Enhance International Tourism Program        0          50          50

2. Continuing
Personal Services
United Kingdom Contract                187         250          63
Other International/Visit Seattle            157          157           0
Writing/Design                       0          38          38
Other Contracted Services
Cruise Plus & General Tourism Promo         58           0         (58)
Brochure Printing, One Sheeter              0          13          13
Total                                 $402         $558         $156

Tourism Grant Program supports small communities in King County 
9

Economic Development Budget Summary 
Inclusive of Direct Charges & Allocations from Corporate, CDD, & Other Divisions 
Incr (Decr)        Incr (Decr)
2014     2015     2015     2016    16-'15 Budget Chg   16-'15 Fcst Chg
$'s Thousands                Actual    Budget   Forecast   Budget      $ %      $ %
Revenues
Operating Revenues               7,310     7,528     7,672     7,449       (79)    -1%    (223)    -3%
Conf & Event Ctr Revenue            8,957     8,580     9,357     6,296     (2,284)   -27%   (3,061)   -33%
Total Revenues              16,267   16,108   17,029   13,745     (2,363)   -15%  (3,284)   -24%
Expenses
Econ Dev Exp (excl P69,Conf, OSR, Tour)     4,823     5,006     4,026     4,993        (13)     0%     967     24%
Conf & Event Ctr Expense           7,374     7,504     7,999     6,439     (1,065)   -14%   (1,560)   -20%
Eastside Rail Corridor               2,436      210      100      144        (66)    -31%      44     44%
Office of Social Responsibility             57       447       363     1,511      1,064    238%    1,148    316%
Tourism                       915      981      981    1,174      193    20%    193    20%
Maintenance Expenses            3,897    3,732    3,595    3,153      (578)   -15%    (441)   -12%
P69 Facilities                        64       46       41       177        131    285%     136    332%
Maritime Expenses                581      554      554      403      (151)   -27%    (151)   -27%
CDD Expenses                361     307     293     609      302    98%    316   108%
Police Expenses                  476      454      452      169      (285)   -63%    (283)   -63%
Corporate Expenses              2,566    1,698    1,675    3,850     2,152   127%   2,175   130%
Envir Remediation Liability               (3)      250        0        0       (250)   -100%       0      NA
Operating Expenses            23,546   21,188   20,078   22,623     1,434    7%   2,544    13%
Net Operating Income           (7,279)   (5,080)   (3,049)   (8,878)    (3,797)   -75%   (5,828)   191%
Net Operating Income impacted by construction at Pier 66 and increase in Corporate Allocations 
10

Economic Development Division 
2016 Capital Budget 
October 13, 2015

Economic Development 
2016 Capital Budget 
Capital Budget Summary By Status 
$'s in 000's                      2016     2017     2018     2019     2020    2016-20
Commission Authorized/Underway   8,856    625      0      0      0   9,481
Pending 2015/2016 Authorization     1,685      0      0      0      0    1,685
Pending Future Authorization        945    1,253    1,000    1,000    3,000    7,198
Small Capital and Other           972    1,772    1,285    1,104    1,104    6,237
Total                       12,458    3,650    2,285    2,104    4,104   24,601


Overall 2016-2020 dollar amount of projects at $24.6 million 
Funding Capacity for projects not yet determined 
12

Economic Development 
2016 Capital Budget 
Commission Authorized*/Underway 

$'s in 000's                      2016     2017     2018     2019     2020    2016-20
T102 Bldg Roof HVAC Replacement    6,050     100      0      0      0    6,150
P69 Roof Beam Rehabilitation         2,766      25       0       0       0    2,791
P69 Built-Up Roof Replacement         40       0       0       0       0      40
Pier 66 Fit & Finish                    0      500        0       0       0      500
Total                       8,856     625       0       0       0    9,481

Note*: Includes projects where some portion of the budget is authorized by Commission 

All projects are renewal and replacement 

13

Economic Development 
2016 Capital Budget 
Pending 2015/2016 Authorization 

$'s in 000's                      2016     2017     2018     2019     2020    2016-20
P66 Elevator 2,3,4 Upgrades          1,360       0       0       0       0    1,360
Bell St Gar Art Inst Elevator Upgrade      325       0       0       0       0      325
Total                       1,685       0       0       0       0    1,685


All projects are renewal and replacement 

14

Economic Development 
2016 Capital Budget 
Pending Future Authorization 
$'s in 000's                         2016     2017     2018     2019     2020    2016-20
Econ Dev Pier 66 Roof Fall Protection        420      14       0       0       0      434
P69 Dir Digital Ctrl System Modernization       25      739       0       0       0      764
Econ Dev Contingency Renew & Replace     500     500    1,000    1,000    3,000    6,000
Total                           945    1,253    1,000    1,000    3,000    7,198


All projects are renewal and replacement 

15

Economic Development 
2016 Capital Budget 
Small Projects 
$'s in 000's                   2016     2017     2018     2019     2020    2016-20
Small Capital Projects             120    1,195      735      500      500    3,050
Fleet Replacement              302      27       0      54      54     437
Econ Dev Technology Projects       250     250     250     250     250    1,250
Tenant Improvements - Capital       300     300     300     300     300    1,500
Total                      972    1,772    1,285    1,104    1,104    6,237


Individual projects under each category in this grouping have a cost of $300,000 or less 

16

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