HomeMy WebLinkAboutReg 2004-11-01 Item 2B - Presentation - Southwest King County Economic Development Initiative (SKCEDI) COUNCIL AGENDA SYNOPSIS
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ITEM INFORMATION
CAS NUMBER: 04-150 I ORIGINAL AGENDA DATE: 11/1/04
AGENDA ITEM TITLE Southwest King County Economic Development Initiative
CATEGORY X Discussion Motion Resolution Ordinance Bid Award Public Hearing Other
Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date Mtg Date
SPONSOR Council Mayor Adm Svcs DCD Finance Fire Legal P Police PW
SPONSOR'S Briefing on Southwest King County Economic Development Initiative
SUMMARY
REVIEWED BY COW Mtg. X CA &P Cmte F &S Cmte Transportation Cmte
Utilities Cmte Arts Comm. Parks Comm. Planning Comm.
DATE: October 12, 04
RECOMMENDATIONS:
SPONSOR /ADMIN.
COMMITTEE Forward to CC
COST IMPACT FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
o $o $o
Fund Source: N/A
Comments:
MTG. DATE 1 RECORD OF COUNCIL ACTION
11/1/04
MTG. DATE ATTACHMENTS
11/1/04 Memo dated October 26, 04
Minutes, CAP meeting October 12, 04
INFORMATION MEMO
.To:
From:
Date:
Subject:
City Council ]
Community DevelopmentDirector
October 26,04
Souiliwest ~ng COUDo/ Economic D velopment Initiative
ISSUES
Briefing on Southwest King County Economic Development Initiative
BACKGROUND
The Southwest King County Economic Development Initiative represents a cooperative
sub-regional economic development effort by the cities of Buren, Des Moines, Normandy
Park, and Tukwila, unincorporated North Highline, the Port of Seattle and King County
devoted to increasingjob opportunities and income for area residents.
The strategy focus. on the economic development potential of Southwest King County in
an effort to increase full-time permanent employment opportunities and household
incomes through enhancing the area business and investment climate. The strategy is a
collective approach to improve the area's economy. By collaborating on economic
development goals, the cities, the Port and the County will be able to achieve more than
they can accomplish by each jurisdiction acting individually.
Attached tothis memo is a brief summary of the Small Business Development Center
and the Export .Promotion Program.
CAP REVIEW
The Community Affairs and Parks Committee reviewed this issue as its October 12
meeting and recommends moving this issue to November I, 04 City Council meeting.
City of Tukwila
City Hall at 5:00 PM
October 12, 2004
A SnaDshot of The SKCEDI Small Business DeveloDment Center
SKCEDI and Small Business
SKCEDI's mission is to facilitate economic development in Southwest King County. From its
inception SKCEDI recognized that small businesses in southwest King County, when viewed
altogether, are the biggestsector in this area's economy. The numbers are substantial: there are about
65,000 small businesses in all of King County, 70% of employment within the County comes from
small and medium-sized businesses. Thatis why SKCEDI is dedicated to business development in
southwest King County. and creating opportunities for businesses to grow.
The SBDC
The Small Business Development Centers [the SBDC] provides business management and technical
assistance, training and research to small business owners and managers to improve profitability and
stimulate economic growth.
The most common services offered by the SKCEDI-SBDC in response are--
support for bank loan applications, coaching on development of written business/marketing plans,
research support for sales and marketing implementation, connections to useful organizations and
resources
Three Typical Tukwila Clients
a. Manufacturer with a a promising growth/export opportunities in one of his divisions.
b. Restaurantowner operating below break-even and sales in downward trend.
c. Sign company owner gearing up to handle higher volume in 2005.
Common Requests fromSKCEDI-SBDC Clients
The five most common requests from SKCEDI-SBDC clients are for assistance with: loan
applications, marketing upgrades to help increase sales, improved financial management, assistance
with completing an equity financing,. assistance for export and imports of services or goods.
The SKCEDI-SBDC Is In Demand
In the first eight months of this year alone, the SKCEDI-SBDC has served over 100 businesses.
This is a result of a continuous outreach program. As of September I s" there were 3 7 active clients,
ranging from owner-operated home-based enterprises to 1 00+ -person manufacturing companies.
Approximately 10% of the local SBDC clients have sales of more than $1 million. Clients are
locatedin all five of the sponsoring cities and in unincorporated King County.
Other SBDCs Serve AU Areas of Washington
There are 20 SBDC.offices in the State of Washington, staffed by 26 certified business development
specialists. The SKCEDI-SBDC is located close to Highline Community College on Pacific
Highway South;Zev Siegl is the fuU-time specialist. Most states in the USA have an SBDC network.
Tukwila City Council, Sub-Committee
October 12, 2004
Export Promotion Pro!!ram
. Origins of the Export Promotion Program: Southwest King County Economic
Development Initiative
The Export Promotion Program was a projecfthat originated from the Southwest King
County Economic Development Initiative (the Initiative.)
The goal of the program is to demystify the exporting process and highlight the benefits and
ease of exporting for small and medium-sized businesses.
The Initiative is a partnership between the cities of Burien, Des Moines, SeaTac, Tukwila,
Highline Community College, the Port of Seattle, and King County. It is dedicated to
business development and opportunities for business growth in the southwest King County
area.
Funding for the Export Promotion Program comes from a grant from the U.S. Economic
Development Administration and Initiative partners.
. Importance of Trade and Exports to the Region
International trade is vitally important to the Washington state economy. Washington
exports contribute to nearly one-half ofthe state's new jobs.
According to the Washington State Department of Community, Trade, and Economic
Development, it is estimated that by 2005, one-in-three jobs in the state will be directly or
indirectly supported by.intemational sales.
In fact, exports result in increased profits, jobs, and real personal income for our region's
companies and residents.
In a world of increased globalization and explosive growth in key Asian markets, the Export
Promotion Program emphasizes the profitability and ease of exporting to our local
businesses. '
Employment -Economic Development - Export Promotion
70 percent of employment within King County comes from small and medium-sized
businesses, the very businesses that can best be tapped for export promotion activities.
As these firms get into international sales and become more profitable, they naturally have
to expand production, leading to greater employment and economic development for the
region.
· Programs:
1) Export Promotion Symposium - 2004 and 2005:
The first Symposium was held earlier this year, in February, at the Doubletree Hotel
inSeaTac.
It was marketed extensively, with particular emphasis on southwest King County. It
was considered very successful, with 100 attendees and 50 companies represented..
Based onthe success ofthis program, we received an extension of our grant from the
U .S.Economic Development Administration to hold a King County-wide Export
Promotion Symposium in 2005.
This event will be widely marketed to small and medium-sized businesses
throughout King County and will have the same goals of emphasizing the
profitability and ease of exporting. It will take place on March 23,2005 at the
WSTCC.
~ Export Mentor Program - 2004:
The Export Mentor Program isa pilot program designed to develop the exporting
capabilities of small and medium-sized companies.
A mentor..,protegerelationship is established between larger, exporting-experienced
companies offering guidance and support to protege companies new to exporting.
The protege companies in turn design Export Plans in order to assess, finance,
market, sell, transport, and distribute their products and services overseas, with the
ultimate goal of developing successful exporting programs.
Currently, 10 companies are participating in the program from SeaTac, Tukwila,
Federal Way, Seattle, and other areas in KC.
The most successful protege company, based on progress throughout the year and
completion of the export plan, will be given a subsidized trade mission to develop
business contacts in a specific market overseas.
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Community and Parks Committee
October 12, 2004
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Present:
Pam Linder, Chair; Joe Duffie, Dave Fenton.
Stephen King, Steve Lancaster, Maggie Lubov, Lynn Miranda, Jack Pace,
Joyce Trantina, Lisa Verne; Sue Carlson (Segale Properties), Martin
Dicker (King County).
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Southwest Kin1!County Economic Develonment Initiative (SWKCEDn
Presentation. Jack Pace provided some background on Tukwila's participation in the
SWKCEDI, .andintroducedMartin Dicker. Martin is a Senior Economic Development
Specialist with KingCounty.He described the goals of the Ecpnomic Development
. Initiative as increasing employment oppommities and hou~ehold incomes throughout
southwest King County. He recognized Pam Linder's confiibutions to the organization
as a member of the Executive Committee, and Jack Pace's contributions as a member of
the Steering Committee. Martin described two significant programs of the Economic
Develv.loauent Initiative: the small Business Assistance Centerlocated at Highline
Community College; and the Export Promotion Program. He also described how the
relatively modest but critical. financial support provided by Tukwila and other cities has
been successful in leveraging significant financial support form other sources.
Forwarded to November 1. 2004 Citv Council meetin1! as a Special Presentation.
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Annroval of Metro Implementation Contract for Commute Trip Reduction Maggi
Lubov, Commute Trip Reduction(CTR) Coordinator, reported this contract is for the
City to expend funds . trom the State allocation for Commute Trip Reduction
administration to collect data relative to CTR. Monies are also used for promotional
activities and advertising of the program for City wide employers and employees. This
one-year contract is for a fiscal year from July 1,2004 - June 30, 2005. The amount to be
spent with this contract with King County Metro is $21,106.00. i
King County Metro provides technical assistance to the City for the data collection and
analysis, as well as employer CTRprogram review functions. Adrnini::;trative
consistency in implementing the State requirements, along with King County Metro's
. technical resources and skills, is the primary reason for this agreement. This is a renewal
of similar contracts in place since 1995. Maggi provided a packet of materials
highlightingCTR activities.overthe past year. The packet included the 2003 CTR Task
Force report to the legislature, ridesharing information and transit changes. Forward to
COW with recommendation to aunrove.
TUCIECONorthwest contract amendment #2. Lynn Miranda described the next
phase ofECONorthwest'g work on the Tukwila Urban Center Plan as: 1) identification of
o potential infrastructure :ft.mding strategies; 2) preparation of an "economic simulation" to
provide information on the ability of proposed City investments to "pay for themselves"
over time; and 3 ) preparation of a summary of previous economic and financial factors
reports, to be included in the proposed TUe plan. The proposed amendment increases
ECONorthwest's contract by $26,000. Forward t~ fJf)vY with recommendation to
approve.
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