2024-08-21 Economic Development Commission Packet'nc. 1 Rye
AGENDA
Edmonds Economic Development Commission
Wednesday, August 21, 2024
6PM — 8PM
HYBRID MEETING
The Economic Development Commission members will be meeting in person and/or remotely for this meeting. The
public may join at the physical location or join through zoom.
PHYSICAL LOCATION
Brackett Meeting Room, Edmonds City Hall — 31 Floor
12151 Ave N, Edmonds, WA 98020
REMOTE MEETING/ZOOM INFORMATION:
https:Hzoom.us/j/98696685791?pwd=RytOZj VuK3ZCNON4Q lRrMHZgSWpyQT09
Meeting ID: 986 9668 5791
Passcode: 901513
6:00 PM Call to Order
1. Roll Call and Recognition of Approved Absences
2. Approval ofAgenda
3. Approval of July17, 2024 Meeting Notes
4. Audience Comments (3 minutes per person)
5. Tax Increment Financing — Presentation and Discussion
6. Business Booster 2.0
a. Review of current iteration
b. What's next
7. EDC Retreat Scheduling — Finding a date
8. Liaison Updates
a. City Council — Councilmember Eck
b. Port of Edmonds — Selena Killin
c. Chamber of Commerce — Ryan Crowther
d. Planning Board — Lee Hankins
9. Roundtable Discussion
10. Adjourn 8:00 PM
Next Regular meeting: September 18, 2024, 6 PM
CITY OF EDMONDS
ECONOMIC DEVELOPMENT COMMISSION MEETING
July 17, 2024
COMMISSIONERS PRESENT:
Allan Townsend, Vice -Chair
Nicole Hughes
Darrol Haug
Pete Spear — via Zoom
Natalie Seitz
Kate Nolan — Student Representative
COMMISSIONERS ABSENT:
Matt Cox - excused
Nicole Hughes - excused
LIAISONS PRESENT:
Lee Hankins — Planning Board, ex-officio — via
Zoom
Selena Killin, Port Commissioner, ex-officio
Ryan Crowther, Chamber, ex-officio — via Zoom
Chris Eck, Councilmember, ex-officio
GUESTS:
Roger Pence
Will Chen, Councilmember
Debi Humann — via Zoom
Ronald Bussiere —via Zoom
Jim — via Zoom
Darla — via Zoom
STAFF PRESENT:
Todd Tatum, Director CCED
Megan Luttrell, Program Coordinator CCED
Economic Development Commission meeting called to order by Allan Townsend at 6:00 p.m.
Call to Order
1. Roll Call and Recognition of Approved Absences: Matt and Nicole's absences are excused.
2. Approval of Agenda: Nick moves to approve the agenda; Darrol seconds; motion passes.
3. Approval of May 22, 2024, Meeting Summary: Kevin H. moves to approve the meeting summary;
Darrol seconds; motion passed.
4. Audience Comments:
Roger Pence introduces himself. He points out that a few years ago the Community Renewal Plan
highlighted the Hwy 99 core for redevelopment. The Landmark Project overshadowed other
opportunities to redevelop. Once the Planning Department is fully staffed and with the Landmark
Project gone, he hopes a new project will develop.
5. Guest Speaker Presentation: Janie Sacco, Small Business Association:
Janie is here to share the structure of the programs that the Small Business Association provides. She
walks the Commission through a robust PPT presentation (Attachment A).
a. Question and Discussion. Kevin H. highlights the Business Booster website as a small
business resource center the Commission spearheaded in partnership with City staff and
Chamber of Commerce. You can find the website at: edmondsbizbooster.com. Janie
would be interested in providing training for small business owners.
DRAFT Meeting Summary
Economic Development Commission
July 17, 2024
Page 1
b. EDC Follow-up: Business Booster update —This item will be discussed at a future meeting.
6. City of Edmonds Budget Blue Ribbon Panel Update: Darrol has been asked by the leadership team to
give an update on the Blue Ribbon Panel's (BRP) findings. The primary focus of the BRP was to review
the general fund. Darrol walks the group through the work that the BRP did. $20M is the primary
deficit. Major element is expense reductions. Darrol provides the group with several resources
outlining the budget issues, current taxes, tax model for potential new revenue and a tax table for
various priced homes (Attachment B).
7. Landmark 99 —What's Next:
a. Community Renewal Areas:
b. Tax Increment Financing:
Todd explains that staff took a resolution to Council to discontinue the work on the Landmark Project,
the timing is not right for the City to move forward with this project. The resolution not only outlines
the work stopping but it also recommends the city bringing back the Community Renewal Area, study
the feasibility of Tax Increment Financing and add a Hwy 99 renewal project renewal to the CIP when
feasible to identify possible infrastructure investments. There will be a future presentation on Tax
Increment Financing (TIF). This would give the City the opportunity to create a TIF area; within the
boundary you identify projects that would spur on infrastructure improvements and development.
There will be a lot of upfront conversations with the community as these ideas move forward.
Councilmember Chen, speaking as a resident, he feels that the new approach is the right way to
move forward. However, due to the City's financial situation, is there any thoughts on where the
funding would come from, how much investment will be done and what is the timing. Todd explains
the language of "when feasible" was intentional. Laying this out in the CIP keeps the radar on this
for the future, when it is feasible.
Natalie feels this series of conversations is difficult. She proposed an idea of an "Opportunity Fund"
during the ProsPlan but it wasn't picked up. Why not adopt the Community Renewal Plan now?
Could this Commission support the adoption of the Community Renewal Plan now, would that be
helpful? Todd's not sure this is the right time but perhaps in a few months. Kevin H. suggests having
a conversation about what the EDC can focus on? Natalie would like to see the City's work on anti -
displacement. Councilmember Eck shares this was a difficult decision. She feels the commitment
from this group on the work they're doing. Councilmember Chen emphasizes the need for Hwy 99
improvements.
Natalie makes a motion to extend the meeting for 15 minutes, Nick seconds, motion passes.
8. Liaison Updates:
a. City Council — Councilmember Eck: Expresses her appreciation to all who have been
working on be done to improve the Hwy 99 area. She feels that work that has been done
on the Landmark Project can be used going forward. Two red light cameras have been
approved: Hwy 99 & 220th and SR104 & 100th. Council passed updates to the ADU's code.
b. Port of Edmonds — Selena Killin: Hoping to bring more food offerings to the
Port/boardwalk area. They did not get the big grant funding they applied for (it's not
typical to get this funding the first time you apply).
DRAFT Meeting Summary
Economic Development Commission
July 17, 2024
Page 2
c. Chamber of Commerce— Ryan Crowther: It's event season. 4t" of July was great! Taste is
coming back to Civic. Launched a new website and launched a new membership platform.
Membership is growing with 56 new members this year.
Selena adds that Habor Square has office space available.
d. Planning Board —Lee Hankins: Had to leave prior to update.
9. Roundtable Discussion:
Carrie will be in Mexico next month. Nick appreciates the location change and feels there's some
big things to work on going forward. Kate really liked the discussion and may miss next meeting
as it's her first day of senior year. Darrol has shifted his volunteer efforts to a group that will look
at how to reduce taxes for low-income families. Kevin H. shares the Mayor has asked him to join
a group with Allan on how to make Commissions and Boards more effective. They're not
representing the EDC but they've been asked because they're on the EDC. If anyone has
suggestions or recommendations send them to Kevin H. Natalie was happy to hear about Theresa
Hollis new group. She's excited to see the light rail doing test runs and last mile transportation
could be a good focus for this group. Pete via Zoom excited to be a part of the group. Allan shares
he and Matt are working on scheduling a retreat.
10. Adjourn: 8:17 p.m.
Next meeting: August 21, 2024, 6 PM location Hybrid — Brackett Room & Zoom
DRAFT Meeting Summary
Economic Development Commission
July 17, 2024
Page 3
ATTACHMENT A
U.S. Small Business
Administration
The SBA works to ignite change and spark action
so small businesses can confidently
START GROW
SBA
EXPAND RECOVER
Local Areas of Focus
CLjUILd1JLC
access to capital
Increase contracting
opportunities
Supported by technical assistance
sBn
You are
not alone.
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SBA
I
You are
not alone.
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SBA
I
SBA Financing Programs
7(a) Guaranteed Loan Program
117 participating lenders in FY 2023
• 7(a) Loan Guarantee
• 504 Loan Program
• Community Advantage Small Business Loan Companies
• Microlenders
• SBICs
• S B I R/STT R
• Investing in America
• Surety Bond Guaranty Program
7(a) Loan Guarantee Program
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t Office Seattle Distric
Lender Links
The Link: Lender List.xlsx (live.com
Lender Match connects you to lenders: MySBA Loan Portal
S IA
7(a) Loan Guarantee Program
With Up to 90% Financing
CapLine Guarantee Program for Term Loans to fund:
Lines of Credit to fund 0 Working Capital Needs
• Operating expenses 0 Inventory
• Seasonal needs 0 Account and Trade Payables
• Equipment Purchases and installation
• Specific contracts costs
• Builders with NAICS of 0 Business debt refinance
236220, 236115, 236116, or 0 Changes of ownership (100% or Partial)
236118 0 Tenant improvements
• Acquisition of owner -occupied real
estate
• Acquisition of owner -occupied land and
ground up construction
Program
Maximum
..
Percent of
Eligible Use of
Maximum
Guaranty Fees
.. P.
Benefits to
Borrowers
7(a) Loans
$5 million
85%
Term Loan.
Depends on ability to
Effective Aug. 1, 2022
Charged on guaranteed
Must be a for -profit
Long-term
L
guaranty for
re Generallp repay. . y�
$50,000 or less Prime + 6.5%
portion Guaranty Fee:
business &meet SBA
financing;
tw
loans of
Expansion/renovation;
working capital not to
$50,001- $250,000 P+6%
$50,001- $2500,00o +6%
$500,000 or less= 0%
size standards; show
Improved cash
O
$150,000 or
new construction,
exceed 10 years;
$350,001 and greater P + 3%
$500,001 to $700,000=
good character,
flow;
L
less; 75%
purchase land or
Equipment, fixtures, or
0.55% $700,001 to $1
credit, management,
Fixed maturity;
a
guaranty for
buildings; purchase
furniture not to exceed
Fixed Rate:
million= 1.05%;
and ability to repay.
No balloons;
Q%
loans
equipment, fixtures,
10 years. Except term
https:Hcatra n.sba.gov/
ftadistapps/ftawiki/ index.cfm.See
$1,000,001 to
Must bean eligible
No prepayment
greater
leasehold
may be up to 15 years if
Downloads and Resources
$5,000,000= 3.5% up to
type of business.
penalty (under 15
than
improvements; working
IRS asset class useful life
section.
$1 million, plus 3.75% of
years)
$150,000
capital; refinance debt
supports longer term.
gtd. portion over $1
Prepayment penalty
L
(up to
for compelling reasons;
Lender must document
million. Loans 12 months
for loans with
$3.75M
for inventory or starting
in credit memo
or less of $500,000 or
maturities of 15 years
maximum
or purchasing a
justification of any term
less = 0%; over $500K =
or more if prepaid
t�
v
guaranty
business.
that exceeds 10 years;
0.25% Ongoing lender
during first 3 years.
=
real estate up to 25
fee: $500,000 and less =
(5%year 1, 3%year 2
Only owner -occupied
years. No balloons or
0.00%. $500,001-
and 1% year 3)
commercial real estate
demand features
$5,000,000 = 0.55%
J
is eligible.
permitted.
For FY2024—there is
Q
no fee for loans of $1
million or less
V7(a)Small
Loans
$500,000
Same as
Same as 7(a) Loans
Same as 7(a) Loans
Same as 7(a) Loans
Same as 7(a) Loans
Same as 7(a) Plus, all
Same as 7(a)
=
Is any 7(a) loan
7(a) Loans
loan applications will
Loans
$500,000 and
be credit scored by
L
under, except the
SBA. If not an
Community
acceptable score, the
Qj
Advantage and
loan can be submitted
Express loans
via full standard 7(a)
or Express.
SBAExpress
$500,000
50%
May be used for
LOC: Max period
Same as 7(a) Loans
Same as 7(a) Loans
Same as 7(a) Loans
Fast turnaround;
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regardless
revolving lines of credit
Revolver- 60 mo.; Max
Streamlined
d
f l
of
(must term -out
(t htt
term out period = 60
process; Easy -to -
period not less than
amount.
mo. For total of 10 yrs.
use line of credit
draw period) or for a
term loan.
Term loan: same as 7(a)
3 B
H
..
-
-
Guaranty Fees
(Based on
..
Benefits to
Portion)
to
SBA Loans to
Processed
Same as
Same as SBAExpress
Same as
Same as 7(a) Loans
For all SBA Express
Same as 7(a) plus, small
Same as SBAExpress
L
Veterans
under SBA
SBAExpress
SBAExpress
loans made to
business must be owned and
and no upfront
OExpress
so
veteran -owned small
controlled (51%+) by one or
guaranty fee.
0
same as
businesses, upfront
more of the following groups:
a
above limit of
guaranty fee will be
veteran, active -duty military in
$500,000
zero.
TAP, reservist or National
Lenders must
Guard member or a spouse of
}�
document in loan file
any of these groups, or a
=
with veteran eligibility
widowed spouse of a service
Lusing
the
member or veteran who died
documentation to
during service, or a service -
Notice 5000-818641.
connected disability.
CapLines:
$5 million
Same as 7(a)
Finance seasonal
Up to 10 years,
Same as 7(a) Loans
Same as 7(a) Loans
Same as 7(a) Loans. Plus, all
1. Working Capital -
=
1. Working Capital;
Loans
and/or short-term
except Builder's
lenders must execute Form
(LOC) Revolving Line
Contract;
working capital
CAPLine, which is 5
750
of Credit
O2.
3. Seasonal; and
needs; cost to
years
2. Contract - can
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perform contract;
finance all costs
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4. Builders
construction costs;
(excluding profit).
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advances against
3. Seasonal - Seasonal
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existing inventory
working capital
V
and receivables;
needs.
consolidation of
4. Builder- Finances
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short-term debts.
direct costs in
May be revolving.
building a
commercial or
residential structure
Community
$350,000
Same as 7(a)
Same as 7(a) Loans.
Same as 7(a) Loans
0- $50,000 Prime +
Same as 7(a) Loans
Same as 7(a) Small Loans
Same as 7(a) Plus
V
Advantage
Loans
Approved CA
6.5% $50,001-
$350,000 or less= 0%
lenders must be CDFIs,
•�
Mission -focused
Lenders by SBA may
$250,000 P + 6%
CDCs, micro -lender or
CY
lenders only.
make revolving lines
$250,001—
SBA Intermediary
Expires 9/30/2024
of credit.
$350,000 P + 4.5%
Lenders targeting
underserved market.
7
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IMaximum
Program
Percent of
Eligible Use of
Maximum
Guaranty Fees
Benefits to
(A
Loan
Portion)
Borrowers
International
$5 million
90% guaranty
Term loan for
Up to 25 years.
Same as 7(a)
Same as 7(a) Loans
Same as 7(a) Loans. Plus,
Long term financing to
L
Trade
(up to $4.5M
permanent working
Loans
engaged or preparing to
allow small business to
tw
Max. guaranty)
capital, equipment,
engage in international trade
compete more
O(Up
to $4M max.
facilities, land and
or adversely affected by
effectively in the
0
guaranty for working
buildings and debt
competition from imports.
international
a
capital)
refinance related to
marketplace
international trade.
Export Working
$5 million
90% guaranty
Short-term, working-
Up to 3 years
No SBA
Based on Maturity : 12
Same as 7(a) Loans.
Additional working
4-0
Capital Program
(up to $4.5M
capital loans for
maximum
months or less: 0.25%;
Plus, need short-term working
capital to increase
maximum guaranty)
exporters. May be
interest rate cap,
Between 13 months
capital for direct or indirect
export sales without
L
transaction based or
but SBA monitors
and 24 months:
exporting.
disrupting domestic
asset -based. Can also
for
0.525%; Between 25
financing and business
support standby letters
reasonableness
months and 36 months:
plan
of credit
0.80%. All based on
guaranteed portion.
O
Export Express
$500,000. This
90% guaranty for loans
Same as SBAExpress
LOC: Max = 84 mo.;
Same as 7(a)
Same as 7(a) Loans
Applicant must demonstrate
Fast turnaround;
amount is NOT
of $350,000 or less;
plus standby letters of
Term loan: same as
Loans
that loan will enable them to
Streamlined process;
J
reduced by any
75% guaranty for loans
credit. No requirement
7(a)
enter a new, or expand in an
Easy -to -use line of credit
Q
SBA Express
greater than $350,000
for term out period
existing export market.
Loan can be for direct or
Loan amounts.
Business must have been in
indirect exporting.
dj
operation for at least 12
V
months s (though not
necessarily in exporting).
L504
Loans
504 CDC
Project costs
Long-term, fixed -asset
CDC Loan: 10, 20 or
Fixed rate on 504
Upfront guaranty fee =
Alternative Size Standard:
Low down payment -
Provided through
maximum
financed as
loans; Lender (non-
25-year term fixed
Loan established
0% (0 basis points).
For -profit businesses that do
equity (10,15 or 20%)
i
dj
Certified
Development
amount ranges
follows: CDC: up to
guaranteed) financing
interest rate.
when the
Annual service fee =
not exceed $15M in tangible
(The equity may be
Companies (CDCs)
from $5 million
40% Lender: 50%
secured by first lien on
debenture
0.4405% (44.05 basis
net worth, and do not have an
borrowed as long as it is
which are licensed by
toproject
(Non -guaranteed)
p j assets. CDC
Lender Loan:
backed loan is
points) of outstanding
p ) g
average two full fiscal year net
g y
not from an SBA loan )
i
SBA
$5.5 million,
Equity: 10% plus
loan provided from SBA
Unguaranteed
sold.
balance of loan.
income over $5M.
Fees can be financed;
V
depending on
additional 5% if new
100% guaranteed
financing may have a
Declining
SBA /CDC Portion:
type of
business and/or 5% if
debenture sold to
shorter term. Maybe
prepayment
Owner Occupied 51% for
Long-term fixed rate
00
business or
special use property
investors at fixed rate
fixed or adjustable
penalty for 1/2 of
existing building or 60% for
Full amortization
project.
secured by 2nd lien.
interest rate
term.
new construction of a
No balloons
building.
.
S BJ
H
ProgramGuaranty
Fees
..
Qualifies
Benefits to
Loan Amount
Guaranty
Proceeds
Interest Rates
Portion)
Borrowers
L504
Loan
Same as 504
Loan to Value
Refinancing of
Same as 504
Same as 504
Same as 504 above
Was incurred not less than 6
Business can access
tW
Refinancing
(LTV) with
Qualified Debt (85%
except annual service
months prior to date of
equity in their
Program
Qualified
of the proceeds
fee = 0.4405% plus
application. Has been secured
commercial real
a
(Permanent)
Debt(s) 90%.
must have been
0.0145%, for a total of
by Eligible Fixed Asset(s) for at
estate for business
Provided through
For projects
originally used to
0.4405% (44.05 basis
least six months; May include
operating expenses
Certified
that include
acquire an Eligible
points plus 1.54 basis
debt subject to a federal
or refinance property
Development
"Eligible
Fixed Asset), and
points for a total of
guarantee under certain
on reasonable terms.
=
Companies (CDCs)
Business
"Other Secured
45.59 basis points) of
conditions. Cannot be a 504
Fees can be financed;
which are licensed
Expenses
Debt" secured by
outstanding balance of
Third Party Loan which is part
SBA /CDC Portion:
L
by
(EBE)" the LTV
the Eligible Fix
loan.
of an existing SBA 504 project.
Long-term fixed rate
SBA
is 85%. EBE
Asset. May include
Full amortization
t�
See Notice 5000-
may not
the financing of
No balloons
808830 for
exceed 20% of
eligible Business
=
details.
the fixed asset
Operating Expenses
O
appraisal
as part of the
value
refinancing.
J
O
Non-7(a) Loans
$50,000
Not applicable
Working capital,
Shortest term
Negotiable with
No guaranty fee
Same as 7(a) Loans
Direct loans from
.I.o
Microloans
supplies, machinery
possible, not to
intermediary. Up
nonprofit
Loans through
& equipment,
exceed 7 years
to 7.75%for loans
intermediary lenders;
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nonprofit lending
fixtures; etc.
over $10,000 or
Fixed-rate financing;
=
organizations;
Intermediary may
8.5%for loans
Very small loan
Ltechnical
chose to refinance
under $10,000
amounts;
assistance
debt. Cannot be
above
Technical assistance
4.
provided.
used for real estate.
intermediary cost
available
of funds.
VU.S. Small Business Administration SBA Answer Desk This is an overview and does not include full policy and OCTOBER 2022
409 3rd Street, S.W. 1-800-827-5722 procedures. See the current Lender and Development
Washington, DC 20416 www.sba.gov Company Loan Programs SOP 5010 for more details.
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SBA
504 Loan Program
14
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! BJB
504 Loan Program
With Up to 90% Financing on Owner -Occupied
Commercial Real Estate
How the Financing is Structured
• A lender finances at least 50% of the total project
• The SBA through the CDC processing agent finances 30% to 40% of the total project
(Ameritrust CDC www.ameritrustcdc.com; Ca
tat Matrix www.ca itaimatrix.or ;
Evergreen Business Capital www.ever reen5Nort west Business Deve o ment
Association www.nwbupsiness.or • Northwest Business Develo ment Association p
www.nwbusiness.or ; Pan an e Area Council www. acidaho or
� p g)
• The borrower's capital injection is 10% to 20% of the total project
• 10% for a business in operation 2+ years with a general-purpose building
• Additional 5% for a business in operation less than 2 years
• Additional 5% for a special use building (only on the first project)
• Green Projects have a maximum funding limit per transaction of $5.5 Million, but no aggregate
limit
sBn
Community Advantage
Small Business Loan Companies
and
the SBA Microlenders
S, j
Community Advantage Small Business Loan Companies (CASBLCs)
Loans up to $350,000
and
Microlender Loans up to $50,000
CASBLCs
Business Impact NW www.businessnw.or
Craft 3 www.craft3.org
Evergreen Business Capital www.evergreen504.com
NW Native Development Fund www.thenndf.or
M icrolenders
Business Impact Northwest www.businessimpactnw.or
Ventures www.venturesnonprofit.org
SNAP (Spokane Neighborhood Action Partners) www.snapwa.org
New Roots www.newrootsfund.org
sBn
Office of Investment and Innovation
ME
S B�
Small Business Investment Companies
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Small Business Investment Companies
Investmentcanital I U.S. Small Business Administration
u
• Debt --A
typical
SBIC loan ranges
from
$250,000 to $10 million,
with
an
interest
rate
between
9%
and
16%.
• Equity--SBICs will invest in your business in
share of ownership in your company. Typical
from $100,000 to $5 million.
exchange for
investments
?-Will
range
• Debt with equity --Financing includes loans and ownership
shares. Loan interest rates are typically between 10% and 14%.
Investments range from $250,000 to $10 million.
Grant Access Programs
21
S BA
about I.,W z0gov_
SBIR Established in 1982, the mission of the SBIR program is to
stimulate technological innovation in the U.S. economy through
the investment of federal research and development (R&D) funds
into innovative high-tech US small businesses. The SBIR statute
requires federal agencies with extramural R&D budgets over
$100 million to set aside a percentage of their annual extramural
R&D budget for small businesses.
STTR Established ten years after the SBIR program, STTR is similar to
SBIR, except that STTR awards are made to small businesses
that pursue technological innovation through cooperative
research and development with non-profit scientific and
educational research institutions. STTR requires federal
agencies with extramural budgets exceeding $1 billion to set
aside a percentage of their annual extramural R&D budget for
SBCs that work in cooperation with universities, federally funded
research and development centers, and other non-profit scientific
and educational institutions.
sBn
For Small Manufacturers
sg�
Investing in America— Man ufactu ring
New grant funding that may help lower energy costs and improve operational
productivity for small- to mid -sized manufacturing facilities
IAC implementation
rants for small manufacturers I U.S. Small
Business Administration (sba.pov
• No cost assessments to save on energy costs at your manufacturing
facility
• The program enables small and midsized manufacturers to get a
no -cost energy assessment.
• Following the assessment, manufacturers can apply to the
Implementation Grants Program.
• The Implementation Grants program provides funding of up to
$300,000 per project
Surety Bond Guaranty Program
sg�
Benefits of SBA guaranteed bonds
1
million
Traditional
Surety Bond
Market
$100K Eligible for
Working Capital (WC) lox
$2
million
SBG Program*
Eligible for
20X
Working capital requirement
is about half what is normally
required for contract surety
bonds.
We count the unused portion
of bank lines of credit (BLOC)
as working capital.
r--I 26
SBA
Technical Assistance Resource Partners
sg�
Additional Resources
If you are an aspiring entrepreneur
or small business owner looking for:
• Mentorship and advice from
volunteer real -world business
executives —in -person or virtually
• Free online workshops and
webinars
• Free Business plan templates and
reviews
SCORE Business Mentors
6 SCORE chapters across Washington
www.score.org
Additional Resources
If you're small business owner looking
for:
• Free business consulting to grow
your business
• Low-cost training on crucial topics
AMERICANS
DCX
Small Business
Development Centers
34 offices across Washington
https:/Iwsbdc.org/
(833) 492-7232
6 offices across Idaho
Homepage - SBDC Idaho (idahosbdc.org)
(208) 426-3875
sBn
Additional Resources
If you are an aspiring or current
woman small business owner
looking for: WOMEWS
BUSINESS
• Comprehensive training and CENTER/NW
p g
counseling on a variety of
topics in several languages
cw
Washington Center for Women in Business
• Business advice to level the
playing field against unique
challenges or obstacles
WAS H I N GTO N
Women's Business Center
Women's Business
Centers
Spokane
https:l/snapfinancialaccess.org
/womens-business-centerl
Lacey
https://wcwb.org/
Seattle
https://businessimpactnw.oW
wwbc
30
SBA
Additional Resources
f you are a veteran of the US
military or a military spouse in
need of:
• Counseling or transition
assistance
• Training and advice to start or
grow your business, or purchase
a new business
• Resource referrals
U.S. SMALL BUSINESS ADMINISTRATION
VB C
VETERANS BUSINESS OUTREACH CENTERS
Veteran's Business
Outreach Centers
Seattle
(206) 324-4330
https:[Jbusinessimpactnw.org/vboc
vboc(@busi nessi m pactnmorg
Community Navigators
The Community Navigator
Program is an American Rescue
Plan initiative designed to reduce
the barriers that all small
businesses, including people
owned by disadvantaged groups
such as those owned by veterans,
women, and those in rural
communities and communities of
color, often face in accessing
critical support.
• Nimiipuu Fund
www.nimiipuufund.org
• Taala Fund
www.taalafund.or�
• Urban League of Metropolitan
Seattle
www.urbanleague.org
Your Local SBA District Office Can Help
Spokane Branch Office
801 W. Riverside Ave., Suite 444
Spokane, WA 99201
(509) 353-2800
Seattle District Office
24014t" Ave., Suite 450
Seattle, WA 98121
(206) 553-7310
infosdo@sba.gov
Connect with Us
https://www.SBA.gov/WA
@SBASeattle
Sign up for SBA Email Updates
https://www.sba.gov/updates
Janie Sacco
Outreach and Marketing Specialist
ianie.sacco(@sba.gov
206.300.3863
Questions?
Janie Sacco
Outreach and Marketing Specialist
janie,esacco(@sba.gov
(206) 300-3863
S
, BA
ATTACHMENT B
From Darrol Haug: Hello EDC Commissioners
To use our time wisely this will give you a short update on the Blue -Ribbon Panel's work. The
attachments will be handed out at the meeting, but one is an interactive model. Here is a
description of each of the attachments.
Budget Issue and BR Recommend: The top half is taken directly from the Mayors State of the City
presentation. Mayor Rosen pointed out to balance the 2024 budget the city used some "one time"
money and also had depleted $8m of reserves. The total budget gap was shown to be $20.50m. The
BR response outlined 4 ways to deal with the gap and is shown on the bottom half.
1. New non property tax revenues.
2. Expense Reductions, primarily headcount and outside consultants.
3. New taxes beyond the 1 % increase the council can approve without a vote of the taxpayers.
4. Because of the time lag of the above, BRP recommended a "bridge loan" using existing city
surplus funds.
Current Taxes for Edmonds: This shows the tax rates for the various taxing districts supported by
Edmonds taxpayers. It also shows the amount of that tax for a $1 m home and an estimate for all of
Edmonds. In addition to what is shown on the county tax bill the Edmonds taxes are displayed in 3
buckets.
1. EMS
2. GF $ to support Fire Services
3. Other GF amounts.
Tax Model for New Revenue: This interactive model allows inputs to be tested to show the tax rate
needed and the taxes associated with the item tested for a $1 m home. It has 3 parts.
1. The top portion shows data alternatives for repaying a bridge loan and rebuilding reserves.
The model allows for testing various loan and reserve levels and allows setting the years to
pay back those amounts. Note these amounts are necessary to simply balance the budget
for 2025 and repay loans and build reserves. Also note that the bridge loan only deals with
the principle and not the interest rate payment. The model calculates the tax rates needed
and the amounts for a $1 m home.
2. The middle portion shows data alternatives for various annual functions. Many of these
functions have been reduced or not fully funded in past budgets. This model shows the rate
and tax impact for a $1 m home and shows a total for all items.
3. The bottom portion shows data alternatives for using bonds to support major projects. The
model is set up to create a bond ladder, much like what schools do for building new
schools. A review of the Capital Program shows cost and timing elements for our major
projects and in many cases no funding has been identified. A bonding ladder is but one way
to fund major projects. The rates and taxes associated with each item does include and
estimate for interest.
Tax Table: This shows for various priced homes the total current taxes for all districts and the
current total Edmonds Tax. The table shows the added tax needed to generate the tax amounts
displayed. Basic formula for taxes rates in Edmonds based on our total Assess Values of $15B is
$.07/1000 generates $1 m. A $1 m home would pay $70 for the city to raise $1 m.
These docs are starting points for the work ahead to prepare a balanced budget for the years ahead.
Mayor Rosen's State of the City Address. March 2024.
Identified Budget Issues
2024 BUDGET PATCHES IMPACT (MILLIONS)4
REGIONAL Fire Authority (RFA) funding from $6.25
ARPA
Savings from unfilled positions $3.20
Sub Total "Problem" $9.45
Examples include: Negotiated union contract, $3.05
additional police cars and technology, library
repairs, new financial software, staff
additions, staff salaries. le n�h
Revised Sub Total "Problem" t $12.5
Rebuild the depleted reserve funds $8.00
Total "Problem" $20.S0
Blue Ribbon Panel Report. July 2024. Specific Suggestion on closing
the Budget Gap
Specific Responses to Our Charge
Make recommendations to correct the situation
1. New sources of non -tax revenues: increased fees, red light cameras,
and other revenue increases;
2. Expense reductions: head count reductions, furloughs, professional
service and other non -compensation reductions;
3. New taxes: The 1% annual increase for EMS, and General Fund (GF)
should be done. Additional property levy for GF and / or joining SCF will
require a vote and would not impact the revenues until 2026.
(Note: with the lag of significant revenue increases until 2025, The Panel recommends
"bridging" the 2025 budget with borrowing internally from available surplus resources
in other City funds)
e
Current Taxes for Edmonds
Prepared by Darrol Haug updated 5.30.2024
Current Taxes by Districts for Edmonds
Shows Current Tax Bill for a $1m Home by Category
District
Rate/1000
Tax $1m Home
Total AV $15b
SCHOOL DISTRICT
2.73
2,730
40,950,000
The taxing Districts are listed in rank order, high to low.
STATE
2.25
2,250
33,750,000
Some line items can be increased with out a vote.
SNOH COUNTY
0.50
500
7,500,000
Some Districts have a top level maximum allowed.
SNO-ISLE LIBRARY
0.32
320
4,800,000
EMS for example has a $.50/1000 max
CEN PS REG TRANS
0.16
160
2,400,000
CITY OF EDMONDS Tot 1.02 1,020 15,300,000
GF is over $50m only $15m is from property tax
Breakdown
EMS 0.30 297 4,578,000
GF for Fire 0.38 379 5,853,228
Total For Fire 0.68 676 10,431,228
EMS tax can be raised to $.50/1000 or plus $3m
Note: SCF Rate is currently $1.26/1000
Other GF 0.34 340 4,868,772
PORT OF EDMONDS 0.07 70 1,050,000
Port of Everett taxes at 3 times the rate and does more
PUB HOSP #2
0.05
50
750,000
in the way of jobs and economic development.
TOTAL
7.11
7,110
106,650,000
Tax Calculator for New Revenue Required.
Prepared by Darrol Haug updated 7.16.2024
2025 Budget will require borrowing to balance and Reserves need to be rebuilt
Select amount and payback period and rate/1000 and tax is calculated
Select Loan Amount and Payback period
BUDGET ITEMS:
Rate/1000
Tax $1m Home Yearly Rev
Bridge Loan
0.13
133 ,000,000
12,000,000
Loan Amount
6
Pay Back in years
Reserves Rebuild
0.13
133 2,000,000
8,000,000
Loan Amount
Filling Gap Total 0.27 267
4
Pay Back in years
Ongoing Needs
Estimated yearly data
Rate/1000
Tax $1m Home
Total Rev Required
Needs are examples of ongoing items not currently funded.
Bldg Maint
0.27
267
4,000,000
Enter estimate of Rev Required and rate and tax caluclated
Capital Prog
0.33
333
5,000,000
Roads
0.13
133
2,000,000
Added Fire tax
0.60
600
9,000,000
Added tax needed to pay added cost of Fire Svc.
Other
0.07
67
1,000,000
Tot for yearly items
1.40
1,400
21,000,000
Total for all items entered
To support major capital items a bond ladder like what schools do may work. Bond ladder is set to issue anew bond every 4 years.
Line Yr 1-4 runs for 20 yrs. During first 4 yr window that is the only funding for projects. In yr 5 anew bond adds the new project amounts
When each new bond is issued it adds the funding and the rate/1000 and the tax to those already in place.
In yr 21 the first bond is retired and would be replaced with a new bond.
Items listed in "Bonding Needs" are examples
listed in no particular
order.
Enter Bond estimaes
Potental Bonding Needs
Yearly Bond Pmt
Bond pd in 20 years
Cum Rate/1000
Cum Tax
Rate/1000 and tax calculated
(Yr 1-4) Police to Hwy 99
0.12
120
20,000,000
0.12
120
for a 20yr retirement.
(Yr5-8) Marsh
0.06
60
10,000,000
0.18
180
(Yr 9-12) Day Lite Creek
0.18
180
30,000,000
0.36
360
(Yr 13-16) Sewer Plant
0.15
150
25,000,000
0.51
510
(Yr 17-20) Storm Water
0.09
90
15,000,000 0.60
100,000,000
600
Total for all Bonds
0.60
600
Tax Table
Prepared by Darrol Haug 7.16.2024
Mayor State of City said we need
$6.5m to replace the ARPA funds Ongoing Need, not one time
Edmonds AV
$1513
$3.2m to fund the positions that were frozen
Rate/1000 to raise $1m
$0.07
$3.05m to pay for Police labor contract and some other things
Subtotal $12.5m
We used $8m reserves over the last few years but this can be repaid over time. 4yr would be $2m
Edmonds tax rate/1000
$1.02
Loan to balance 2025 budget??. Amont will have to be repaid with interest
All other taxes rate/1000
$6.09
Total tax rate/1000
$7.11
New tax revenues (millions)
Added Ed Tax
1
2
3
4
5
6
7
8
9
10
Home Values
Tot Tax
Current Ed Tax
New
Tax for Home
300,000
$2,133
$306
21
42
63
84
105
126
147
168
189
210
400,000
$2,844
$408
28
56
84
112
140
168
196
224
252
280
500,000
$3,555
$510
35
70
105
140
175
210
245
280
315
350
600,000
$4,266
$612
42
84
126
168
210
252
294
336
378
420
700,000
$4,977
$714
49
98
147
196
245
294
343
392
441
490
800,000
$5,688
$816
56
112
168
224
280
336
392
448
504
560
900,000
$6,399
$918
63
126
189
252
315
378
441
504
567
630
1,000,000
$7,110
$1,020
70
140
210
280
350
420
490
560
630
700
1,100,000
$7,821
$1,122
77
154
231
308
385
462
539
616
693
770
1,200,000
$8,532
$1,224
84
168
252
336
420
504
588
672
756
840
1,300,000
$9,243
$1,326
91
182
273
364
455
546
637
728
819
910
1,400,000
$9,954
$1,428
98
196
294
392
490
588
686
784
882
980
1,500,000
$10,665
$1,530
105
210
315
420
525
630
735
840
945
1050
1,600,000
$11,376
$1,632
112
224
336
448
560
672
784
896
1008
1120
1,700,000
$12,087
$1,734
119
238
357
476
595
714
833
952
1071
1190
1,800,000
$12,798
$1,836
126
252
378
504
630
756
882
1008
1134
1260
1,900,000
$13,509
$1,938
133
266
399
532
665
798
931
1064
1197
1330
2,000,000
$14,220
$2,040
140
280
420
560
700
840
980
1120
1260
1400
2,500,000
$17,775
$2,550
175
350
525
700
875
1050
1225
1400
1575
1750