ITEM NO.    6f
DATE OF 
MEETING February 23, 2010

THE INDUSTRIAL DEVELOPMENT CORPORATION 
OF THE PORT OF SEATTLE 
NOTICE OF THE ANNUAL MEETING 

The Annual Meeting of the Industrial Development Corporation of the Port of Seattle will be held
on Tuesday, February 23, 2010, in the Commission Chambers, Pier 69, 2711 Alaskan Way, Seattle
Washington, during a recess of the Port of Seattle Commission Regular Meeting, which convenes at
l:00 p.m. The Agenda includes: 
1.  Approval of the minutes of the Industrial Development Corporation of the
Port of Seattle Special (Annual) Meeting of March 5, 2009 and the Special
Meeting of July 28, 2009. 
2.  Approval of the Industrial Development Corporation of the Port of Seattle
Board of Directors and Officers for 2010. 
3.  Review of the Annual Report for the Industrial Development Corporation for
year ending December 31, 2009. 
Adjournment of the Annual Meeting of the Industrial Development Corporation of the Port of
Seattle.

INDUSTRIAL DEVELOPMENT CORPORATION AGENDA 
Item No.        2 
Date of Meeting   February 23, 2010 
DATE:        February 5, 2010 
TO:          Tay Yoshitani, Chief Executive Officer 
FROM:       Diane Campbell, Senior Corporate Financial Analyst 
SUBJECT:      Election of Officers 

REQUESTED ACTION: 
Approval of the Industrial Development Corporation of the Port of Seattle Board of Directors and
Officers for 2010. 

BACKGROUND: 
In accordance with the Bylaws for The Industrial Development Corporation of the Port of Seattle,
following is a list of the Board of Directors and Officers for the Corporation: 
Bill Bryant, President 
Gael Tarleton, Vice President 
Rob Holland, Secretary 
John Creighton, Assistant Secretary 
Tom Albro, Director 

"Section A. Number and Qualifications. The officers of the Corporation shall be the same as the
officers of the Port Commission and such other officers as may be determined by the Board of
Directors from time to time to perform such duties as may be designed by the Board of Directors."

INDUSTRIAL DEVELOPMENT CORPORATION AGENDA 
Item No.        3 
Date of Meeting  February 23, 2010 

DATE:        February 5, 2010 
TO:          Tay Yoshitani, Chief Executive Officer 
FROM:       Diane Campbell, Senior Corporate Financial Analyst 
SUBJECT:      Industrial Development Corporation Annual Report for 2009 

SYNOPSIS: 
The Industrial Development Corporation of the Port of Seattle, also known as IDC, was established
in 1982 pursuant to Revised Code of Washington (Chap. 39.84). The IDC is a special purpose
government with limited powers and was established for the purpose of facilitating industrial
expansion through tax-exempt financing by providing companies with access to the tax-exempt
credit market through the facilities of the IDC.
Any company with a project that qualifies for tax exempt financing and qualifies under RCW 39.84
and IDC policy may apply for IDC financing. The Port is not the lender and cannot lend credit or
give money to the IDC. Debt issued by a company through the IDC is the sole responsibility of the
company and is always non-recourse to the Port and to the IDC. Bond proceeds go directly to the
company borrowing through the IDC. The companies pay their debt service (principal and interest)
to a trustee. 
Any city, county or port in the state may establish an IDC, and a number of other jurisdictions have
done so, including King and Pierce Counties; the cities of Seattle, Auburn, Redmond and Kent; and
several other ports.
The IDC also offers one or more Fellowships to eligible Port employees who wish to improve their
skills to pursue the "economic development" core mission of the Port. The annual Fellowship(s)
commenced in 2001, and 16 awards have been made since then. 
The IDC is governed by a board of directors comprised of the members of the Port Commission;
accordingly, both the IDC Board and the Port Commission must approve any IDC bond issue. The
IDC Board currently meets twice a year during a Commission meeting. In addition to electing new
officers and reviewing the IDC's annual financial results at the winter meeting, the IDC's Board
provides guidance about the level of funding to be approved for the IDC Fellowship Program. At
the summer meeting, the IDC's Board, approves the fellowship nominations. 
ANNUAL REPORT SUMMARY: 
Attached are the financial statements of the Industrial Development Corporation of the Port of
Seattle (IDC). The IDC had assets totaling $324,564 at year-end 2009. Total income of $ 9,315 
came primarily from investment income on the IDC fund balance, as well as from the customer fee
paid by companies with outstanding IDC debt. The IDC incurred administrative expense of $840

and economic development expense of $10,000 in July 2009 for its contribution to the Port's
Economic and Trade Fellowship program.
STATUS OF IDC BONDS: 
At the end of 2009, there were three companies with outstanding IDC debt totaling $81,000,000.
The IDC collects an annual customer fee from the companies based on their annual debt service
payments, except for Northwest Airlines, which made a lump sum payment at the time their bonds
were issued. The table shows the companies, their outstanding balance and final maturity date of
their debt as of December 31, 2009. 
Company                Outstanding Debt (12/31/09)   Maturity Date 
Sysco (refunding CCC Realty)            $ 8,000,000          2025 
Northwest Airlines                     64,300,000          2030 
Crowley Marine Services                 8,700,000          2021 
TOTAL                   $ 81,000,000

INDUSTRIAL DEVELOPMENT CORPORATION 
Tay Yoshitani, Chief Executive Officer 
February 5, 2010 
Page 2 of 2 

MANAGEMENT DISCUSSION: 
The customer fee for 2009 is $174, and is lower than the customer fee for 2008 of $824. Since most
IDC debt is variable rate, the customer fee amount fluctuates with interest rates. Interest rates declined
during 2009 and are anticipated to remain at a low level for 2010. Accordingly, t he customer fee for
2010 is projected to be the same as the 2009 amount. The customer fee is for debt service paid on the
Sysco and Crowley bonds.  The IDC will be receiving on-going customer fees from these two
companies; Northwest Airlines made a one-time lump sum fee payment in 2001 when the bonds were
issued. 
IDC assets are invested in the Port's investment pool. The IDC's allocated interest income from the
pool in 2009 was $9,141; and, due to the continued lower interest rate environment, the investment 
income for 2010 is projected to be the same as the 2009 amount. 
The administrative expense increased to $840 in 2009.  There were no other expenses in 2009. Other
expense of $2,279 in 2007 is attributable to the Washington State Auditor for the audit process that
happens approximately every three years.  Scholarship expense was $10,000 in 2009 as requested and
approved by the Board. The scholarship expense anticipated in 2010 is the economic development
expense, which is the contribution to the Port's10th annual Economic and Trade Fellowship of an
estimated $5,000. (The amount may be increased at the IDC Board's discretion.) Similar to last year,
staff is planning to request the approval for the expenditure in the summer. 
The IDC's charter permits its funds to be transferred only to the Port. Under an amendment to RCW
39.84.130, funds of the IDC that are not otherwise encumbered for the payment of revenue bonds and
are not anticipated to be necessary for administrative expenses of the IDC may be transferred to the Port
to be used for growth management, planning or other economic development purposes. In order to
transfer funds, the Board of Directors of the IDC needs to adopt a resolution authorizing the transfer.
Any transfer of funds would reduce the assets of the IDC and the interest earnings on these assets. 

RECOMMENDATION: 
Staff recommends that the IDC maintains a minimum fund balance of $50,000 to ensure adequate
investment earnings to fund annual operating expenses. Should the IDC board wish to continue the
Fellowship program, staff recommends that an additional fund balance of $200,000 be maintained in
order to generate sufficient investment earnings to fund the Fellowship. However, the Board may elect
to use any IDC funds in excess of operating expenses needs for any allowable purpose. 

OTHER DOCUMENT(S) ASSOCIATED WITH THIS ANNUAL REPORT: 
Industrial Development Corporation Frequently Asked Questions (FAQs)

INDUSTRIAL DEVELOPMENT CORPORATION
OF THE PORT OF SEATTLE
BALANCE SHEET

December 31,   December 31,   December 31,
2009        2008       2007

ASSETS
Cash and Cash Equivalents    $ 324,464        $ 325,316        $ 321,032 
Accounts Receivable                100          556         793
TOTAL ASSETS         $ 324,564     $ 325,872     $ 321,825 

LIABILITIES AND EQUITY
(1)
E&T Fellowship Reserves    $ 30,251      $ 30,035      $ 29,482 
Equity                       294,313       295,837      292,343
TOTAL LIABILITIES & EQUITY $ 324,564      $ 325,872      $ 321,825 
(1)  The Economic & Trade (E&T) Fellowship Reserve, the "Reserve", is the undistributed balance of approved Scholarship
awards to the E&T Fellowship. The Reserve balance was $16,709 at 12/31/2006. The Reserves are included in this report due
to a change in accounting methodolody in 2007. In prior years the Reserve was accounted for and presented in the Port of
Seattle financial statements.

INDUSTRIAL DEVELOPMENT CORPORATION
OF THE PORT OF SEATTLE
INCOME STATEMENT
AND CHANGES IN EQUITY

December 31,    December 31,   December 31,
2009        2008       2007
INCOME
Customer Fee         $ 174     $ 824    $ 1,250 
Investment Income              9,141        13,328       14,451

EXPENSE
Administrative Expense    $ 840     $ 658     $ 556 
Scholarship Expense            10,000        10,000       15,000
Other Expense - Audit                                    2,279 
NET INCOME       $ (1,525)     $ 3,494    $ (2,134) 

BEG. EQUITY        $ 295,837      $ 292,343      $ 294,477 
ENDING EQUITY     $ 294,313      $ 295,837     $ 292,343

INDUSTRIAL DEVELOPMENT CORPORATION
OF THE PORT OF SEATTLE
STATEMENT OF CASH FLOWS

December 31,  December 31,  December 31,
2009       2008      2007
CASH FLOWS FROM OPERATING
ACTIVITIES:
Cash received from bond issuers       $ 630     $ 1,061      $ 1,206 
(1)
Cash received from Port of Seattle                0          0       16,709
Cash paid for expenses                  (10,624)     (10,105)      (5,063)
Net cash provided by
operating activities                  $ (9,993)       $ (9,044)       $ 12,852 
CASH FLOWS FROM INVESTING
ACTIVITIES:
Purchase of investment securities
Sale of investment securities
Interest on investments              $ 9,141       $ 13,328       $ 14,451 
Net cash provided by
investing activities                   $ 9,141       $ 13,328        $ 14,451 
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS          (852)    4,284    27,303
CASH AND CASH EQUIVALENTS
Beginning of year                  $ 325,316        $ 321,032        $ 293,729 
End of year                    $ 324,464        $ 325,316        $ 321,032 
(1) Cash received from the Port of Seattle represents the Economic & Trade (E&T) Fellowship Reserve, the "Reserve". The
Reserve is the undistributed balance of approved Scholarship awards to the E&T Fellowship. The Reserve balance was $16,709
at 12/31/2006. The Reserves are included in this report due to a change in accounting methodolody in 2007. In prior years the
Reserve was accounted for and presented in the Port of Seattle financial statements.