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HomeMy WebLinkAboutPED 2020-02-03 Item 1B - Grant Application - Port of Seattle Economic Development GrantCity of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Planning and Economic Development Committee FROM: Derek Speck, Economic Development Administrator CC: Mayor Ekberg DATE: January 29, 2020 SUBJECT: 2020 Port of Seattle Economic Development Grant Application ISSUE Staff requests Committee approval to apply for an economic development grant from the Port of Seattle. BACKGROUND The Port of Seattle is accepting applications for its 2020 Economic Development Partnership Grant Program. Applications are due February 27. Funds are based on each city's population and the City of Tukwila is eligible to receive $20,930. The Port requires the applicant to provide matching funds of at least 50 percent of the grant. Of the required match, at least half needs to be met by direct city expenditures such as contracts for services. The balance of matching funds may be met through in -kind resources such as staff time. The City would have to expend the Port funds by the end of October 2020. DISCUSSION Staff would like to apply for the full $20,930 of Port funds. The funds would be used for two projects. Kent Valley Business Recruitment In 2019, the City used $7,000 in Port Grant funds to support the development of a business recruitment website in partnership with the Cities of Auburn, Pacific, Renton and Kent. The City of Kent was the lead on the project and invested $100,000 of funding to develop the website and implement a public and media relations plan. The website was launched in the summer of 2019 and can found at KentValleyWA.com. For 2020, staff would like to continue to support the Kent Valley Partnership and provide up to $4,000 to the City of Kent for website maintenance and updated messaging. Tukwila Tourism Digital Media Program Staff would like to use the remaining Port grant funds to develop a digital media program for tourism. The Port grant funds would be combined with lodging tax funds to develop a digital media strategy, a website, email and social media accounts for Instagram and Facebook, and compelling content such as photos, videos, images, stories, information, and other resources. The digital media program would be primarily intended to attract visitors by improving the visitor experience when in Tukwila. A secondary benefit would be attracting residential and other commercial development that is drawn to a city with amenities such as entertainment, retail, restaurants, and outdoor recreation. This is an essential component in the City's overall branding efforts. K INFORMATIONAL MEMO Page 2 The tourism digital media program would be different from the City's current website and social media resources since this program would not include general government related information. The program would complement the marketing work by the Seattle Southside Regional Tourism Authority (SSRTA) and the Seattle Southside Chamber of Commerce. SSRTA's website and strategy promote a three -city region with an emphasis on places to stay and holding meetings. The Chamber's website and strategy is promoting a five -city region with an emphasis on business. The proposed digital media program would promote Tukwila with an emphasis on lifestyle and local activities. There would be cross promotions and links between the three organizations. A majority of the costs associated with the creation of the digital media program will be paid with lodging tax funds (assuming approval of a future funding request). However, it is important for the digital media program to also include components focused on potential future residents and current residents seeking information on local activities and benefits of living in Tukwila. These parts of the digital marketing program would likely not be eligible for lodging tax funding and would be paid from the Port grant or the general fund economic development budget. In 2018, Airmark Apartments opened in Tukwila's Southcenter District. At the time, the managers of the apartment noted that leasing for the units was slower than expected. One factor that may have slowed lease -up is that the Southcenter District is still emerging as a neighborhood with residents. Creating a digital marketing program can help to promote and brand the area as a place to live. The following are example websites: • https://www.discoversiu.com/ • https://www.discoverburien.org • https://www.bellevuedowntown.com/ FINANCIAL IMPACT The Port grant would be additional revenue that would cover additional costs. The City's matching funds are already included in the Economic Development Division budget and the Lodging Tax budget. These funds were already planned on being expended in 2020, so there will be no net effect on the City's financial position. However, the grant was not included in the 2020 budget and so a budget adjustment for $20,930 of revenue and expenses may be necessary. Any use of lodging tax funds will require the review of the request by the Lodging Tax Advisory Committee and the City Council. RECOMMENDATION Committee approval to submit grant application. ATTACHMENTS None S1