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HomeMy WebLinkAboutCity Council Committees - Economic Development Corporation - 09/08/1992 Economic Development Corporation September 8, 1992 The annual meeting of the Kent Economic Development Corporation was called to order at 5 :00 p .m. by Chairman White at Kent City Hall . PRESENT Boar members : White, Woods , Johnson, and Llewellyn Officers : General Counsel Lubovich, Treasurer McCarthy, Secretary Jacober Others : Steve Burpee, Scott Jackson, Chris Porter, Raul Ramos , Alana ilcIalwain, Robb Dreblow ELECTION OF OFFICERS Lu ovich explained that the bylaws state that election of officers is to take place in September of each year. Johnson moved that White serve as Chairman, Woods seconded and the motion carried. White moved that Johnson serve as Vice-Chairman. Llewellyn seconded and the motion carried. Woods moved to appoint Tony McCarthy as Treasurer and Brenda Jacober as Secretary. Johnson seconded and the motion carried. • INTERNATIONAL TRADE PROGRAM Steve Burpee of the Kent Chamber of Commerce explained that their International Trade Committee has worked closely with Tradec to develop a program to market Kent on an international basis , and requested fund- ing in the amount of $50,000 to begin the program. He noted that that amount will be matched by the business community in dollars and in-kind services and that there will be a steering committee made up of funding partners which will make decisions regarding expenses . He added that this program will continue year after year and that they may request funding in the future. Scott Jackson of Tradec presented the Action Plan and noted that Kent already has 31, 000,000 sq . ft . of warehousing and distribution space, making it one of the largest distribution and warehousing centers in the United States . He explained that promotional materials , programming and infrastructure are strategies which must be developed to establish Kent as a destination for international trade, tourism, and investment through its transshipment capabilities . Burpee noted that they have spoken with the Port of Seattle, Gary Grant, the Washington State Trade Development Department , local legislatures , and the U.S . Department of Commerce, and that he will be visiting the Far East in October . He emphasized that the idea is not to duplicate what others are doing, but to enhance it . He said that one good reason for EDC to help with this project is the economic benefits , or jobs . He said that now is the time for international trade, and that Kent is a great location. Jackson then described the Washington Agricultural Showcase which was ` held in Yakima, noting that 100 international buyers from 12 countries attended, that there were 175 exhibitors, and that it resulted in 2 $4, 000, 000 worth of sales on the floor and 50 signed contracts . He added that they project $12-38, 000, 000 more in the next 6-18 months . Upon Lubovich' s question, Jackson explained that this was a $250, 000 f project. Burpee noted for White that they have not been in contact with the Seattle/ King County EDC, and Jackson explained that the trade zone is typically a confined area ranging from a parking lot to several city blocks . He also noted that property taxes would remain the same. Upon White' s question, Lubovich explained that the EDC can only fund industrial development facilities , which are defined as hard structures, but that EDC can use its earnings for the benefit of the city. He said that the question is whether this would be considered a gift of public funds . He noted that the city had received a document in return for money disbursed last January, but that the indirect benefits of helping the economy would not pass constitutional scrutiny. Jackson explained that the city would receive a trade exhibition, at which time key inter- national and domestic buyers and investors would be brought to the Kent Valley . Burpee added that the city would also receive a resource guide and a foreign trade zone. White suggested giving Lubovich time to research this issue and meeting again in two weeks . Llewellyn asked about the potential generated by a trade fair, and whether Kent has the capaoi:ty to absorb it , and Jackson said Kent would do at least as well as Yakima. Burpee noted that there is currently a 9-10% vacancy rate in Kent' s office and warehouse space . McCarthy suggested defining what the $50,000 would cover, and having private sponsors pay • other costs such as hosting. He noted that EDC will end this year with approximately $66, 970, and that spending $50, 000 on this project would affect funding other projects in the future. He explained for Burpee that EDC may not be carried on indefinitely and that it may make sense to spend the funds and end the program. White pointed out that if this $50, 000 is disbursed, there will not be much available for this project in the future . It was then agreed to meet on this issue at 5 :00 p .m. on September 22nd. INFRASTRUCTURE COMMITTEE UPDATE Raul Ramos distribute copies of a Summary Report and an Economic Develop- ment Strategy Report. He noted that the Strategy Report details a series of projects which he has proposed the city be involved in, and that he would like to return in two weeks to speak about it. He went through the Summary Report, noting that the report consists of a Utility Plan and Implementation. He explained that Phase I, the Utility Plan, contains utility reference maps showing utility improvements , a list of capital projects and cost estimates, and phasing of improvements , as well as identification of funding alternatives . He noted that Phase II, Implementation, consists of formulating the capital funding plan (analyzing the relative importance of the projects with other CIP projects) . He gave a summary of the utility conditions , including the sewer system, the storm drainage system, the water system, the street system, power, sidewalk/pedestrian systems , and telephone, cable and natural gas systems . Ramos emphasized that in over 70% of sidewalk disrepair, the problem is directly related to street trees . 3 Ramos outlined costs as follows : Primary Infrastructure (sewer, storm, water, street , sidewalk, power substation) $ 3, 703, 000 Related Infrastructure (parking facilities at Smith and Titus and in-city transit demo project) $ 6, 075 , 000 Other Infrastructure (multi--purpose civic center -- art/performing/convention) $ 10-20, 000, 000 He listed sources of funding as sewer utility, drainage utility, street utility, impact fees , developer improvements , Federal Economic Develop- ment Administration funding, environmental mitigation agreements , and the formation of a public development authority under which square footage could be leased to private entities , such as a future munici- pal court . There were no comments and the meeting adjourned at 7 : 00 p .m. Brenda Jacob Secretary to the Board