7a Economic Development memo

COMMISSION 
AGENDA MEMORANDUM                        Item No.          7a 
ACTION ITEM                            Date of Meeting       June 12, 2018 
DATE:     June 12, 2018 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Dave McFadden, Managing Director, Economic Development Division 
SUBJECT:  Approve Port Economic Development Partnership Applications 
Amount of this request:                 $ 11,410 
Total estimated project cost:            $925,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to execute Economic Development
Partnership Program contracts with the City of Enumclaw to implement local economic development
initiatives for a total amount not to exceed $11,410.

EXECUTIVE SUMMARY 
The Port of Seattle'sEconomic Development Partnership Program provides King County cities
per capita funding to advance local economic development throughout the region.  Annual
grant funding is provided on a $1 per capita formula with a maximum of $65,000 while ensuring
each city receives at least $5,000. 
The grant fund is structured to drive meaningful outcomes: 
Provide some flexibility to define local economic development projects 
Tie to economic development (ideally the Century Agenda's although, not required) 
Require a 50 percent local match to ensure cities are also committed to project success 
Staff is seeking Commission authorization to execute an ED Partnership grant contract with the
City of Enumclaw.   The City of Enumclaw would use an $11,410 grant to promote their
downtown during the fall and holiday shopping season. Wayfinding banners and a concerted
promotional campaign are planned to attract tourists and residents to the central business
district between October and Christmas. The City was unaware of the Port's Economic 
Development Partnership program until recently when it received a Port tourism grant. The
City would like to take advantage of the Port partnership grant to implement downtown
revitalization and tourism projects this fall. 


Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 7a                                 Page 2 of 5 
Meeting Date: June 12, 2018 
At the Commission meeting, the Cities of Federal Way, SeaTac, Issaquah and Kenmore will be
providing updates to the Commission on their grant funded initiatives. The City of Federal Way
is using a partnership grant to support business recruitment. In particular the City is working to
attract foreign direct investment through a partnership with foreign consulate offices. 
Issaquah is investing Port partnership funds in several projects. They are establishing a new
tourism marketing organization, providing "Chamber University" training to small businesses,
and part of a regional StartUp 425 initiative that is helping companies learn to export. 
SeaTac is building off the Port partnership to improve wayfinding signage to the City's main
services. With 60,000 cars coming through SeaTac daily, the City wants to better capture
visitors and travelers going to and through the City. 
Kenmore has used partnership grants to support small business training and their business
incubator. The City recently won a Municipal Excellence Award for Economic Development
from the Association of Washington Cities for the work they have done with Port grants. 

JUSTIFICATION 
This Economic Development partnership program supports the Century Agenda vision of adding
100,000 jobs through economic growth led by the Port of Seattle. Grant funds are distributed
to city partners in King County (outside Seattle) so a larger team is working to create middle
class jobs within the region.  Through purposeful contracts with local governments, the Port is 
extending its economic development reach to all parts of King County.
The Port's Economic Development Partnership Program also honors the Port's commitment to
create economic opportunity for all, partner with surrounding communities, and promote social
responsibility. The grant program also can help: 
Position the Puget Sound region as a premier international logistics hub; 
Advance this region as a leading tourism destination and business gateway; 
Promote small business growth; and 
Anchor Puget Sound urban-industrial land use to prevent sprawl in less developed areas. 
DETAILS 
The Port Economic Development Partnership Program helps  the Port advance regional
economic vitality through focused partnerships with King County cities. Grants are made to
participating cities to pursue programs and projects that stimulate business development, job
creation and community revitalization.  Cities may in turn contract with local nonprofits (ex.
Chamber of Commerce, Visitor Bureau, etc.) to carry out specific initiatives. Port Economic

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 7a                                 Page 3 of 5 
Meeting Date: June 12, 2018 
Development Partnership Programs can be used to support the  following economic
development activities: 
Business recruitment initiatives designed to attract new companies to a region or city 
Small business development (including incubator/accelerator projects) 
Industry retention and expansion assistance (ex. Maritime, Aerospace, etc.) 
Tourism development 
Downtown revitalization 
Commercial or industrial property development 
Other community or economic development projects that support new investment and
job creation 
The Revised Code of Washington article 53.08.245 authorizes the port to engage in economic
development programs. While RCW 53.08.245 specifically permits ports to engage with nonprofit
corporations in furtherance of such programs, it does not address port engagement with
other governmental agencies. 
Another port district statute, RCW 53.08.240(2) permits the Port to enter into contracts with
other municipal corporations (as well as counties, U.S. government and State). The Interlocal
Cooperation Act, Chapter 39.34 RCW, and specifically RCW 39.34.080, also permit such joint
activity. The general requirement is that in all the joint activities, the two agencies must be able
to exercise the same power separately as they intend to exercise jointly.  RCW 35.21.703
authorizes cities to enter into economic development programs. 
These statutes allow the Port to make funds available to King County cities for the purpose of
advancing programs that are consistent with Port related/authorized activities.  Contracts or
interlocal agreements will identify the specific obligations of each party (and the specific use of
the Port funds) to ensure that partnerships and initiatives pursued are appropriate.
2018 Schedule 
June 12  Commission makes decision to award proposed grants 
June/July  Agreements negotiated and approved with Enumclaw and King County. 
August through October -- Project implementation 
November  Projects complete  final reports due to Commission 
December  Annual program evaluation complete  Commission briefing on results and any
proposed changes to program for next year 



Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 7a                                 Page 4 of 5 
Meeting Date: June 12, 2018 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Decline or postpone ED Partnership projects in Enumclaw 
Cost Implications: $0 
Pros: 
(1)   Saves Port funding that can be used to support other initiatives. 
(2)   Provides Commission and staff additional time to consider other projects. 
Cons: 
(1)   Leaves gap in signage for visitors using the Savor Snoqualmie trail system. 
(2)   Sends mixed signal to City of Enumclaw. 
This is not the recommended alternative. 
Alternative 2  Approve contracts for Enumclaw 
Cost Implications: $ 11,410 
Pros: 
(1)   Enumclaw  is  ready  to  partner  with  the  Port  on  a  local  economic  development
initiative. 
(2)   Enumclaw providing 50% match funds to leverage Port dollars and show commitment
to projects. 
Cons: 
(1)   Funding request is outside normal application cycle  applicant will have less time to
complete projects. 
This is the recommended alternative. 

FINANCIAL IMPLICATIONS 
The Port Economic Development Partnership Program budget is $965,000 annually based on
per capita funding formulas. There are about ten cities that do not participate in the program
and several cities have not used all their grant funds. Twenty-eight cities participated in the
inaugural partnership program (2016-2017) investing $755,762 in economic development
initiatives throughout King County.  For 2017-2018 we expect cities to use their funds and
invest approximately $910,000 in economic development initiatives. The Port property tax levy
supports this grant program.
ATTACHMENTS TO THIS REQUEST 
(1)   Economic Development Partnership Grant Program 
(2)   2016 Summary Economic Development Partnership Grant Report 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 7a                                 Page 5 of 5 
Meeting Date: June 12, 2018 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
November 14, 2017  Commission authorized five city contracts totaling $76,265. 
October 11, 2017  Commission authorized 15 city contracts totaling $411,170. 
September 12, 2017  Commission authorized six city contracts totaling $212,610. 
August 15, 2017  Commission authorized six city contracts totaling 235,785. 
June 27, 2017  Commission briefing on 2016 results. 
November 8, 2016  Commission authorized four city contracts totaling $81,770. 
October 11, 2016  Commission authorized 15 city contracts totaling $411,170. 
September 27, 2016 - Commission authorized three city contracts worth $132,350. 
August 23, 2016  Commission authorized nine city contracts worth $294,335. 
June 14, 2016  Commission authorized the Chief Executive Officer to: (1) establish a new
economic development grant fund; (2) authorize up to $1,000,000 for 2016 grants to
King County cities; and (3) perform necessary project management and contract
administration to support the new grant program. 











Template revised September 22, 2016; format updates October 19, 2016.

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