Bottom Line Blog Office of Economic Development

Bottom Line

News from Seattle's Office of Economic Development

Mayor, Councilmembers propose repealing business tax

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This week, Mayor Greg Nickels and Councilmembers Richard Conlin and Tim Burgess introduced a proposal to encourage job growth by repealing an annual tax paid by Seattle businesses.

“In these tough economic times, we want to do everything possible to create jobs and help businesses grow,” said Nickels.

Known as the “employee hours tax” or “head tax,” the annual $25 per employee tax was initially introduced in 2006 to fund city-wide transportation projects. The head tax has long been opposed by local business owners, who find the tax unnecessary and difficult to administer.

“We have worked closely with the mayor over the past few months to identify obstacles to economic growth and we agree that repeal of this tax will encourage job growth,” Councilmember Burgess said. “The employee hours tax has generated less revenue than anticipated, but more importantly it has negative consequences because it taxes the creation of new jobs.”

In repealing the tax, Nickels, Burgess, and Conlin hope to signal the city’s dedication to job growth and business satisfaction.

“We asked the business community what would help them get back on their feet, and this was one of their first suggestions. That’s why my Committee of the Whole on Economic Recovery decided to address this issue. We’re removing a barrier to getting people back to work,” said Council President Conlin.

Read more Seattle Times’ coverage of the employee head tax here.
Read the Mayor’s full press release.

Two satellite farmers markets launch in Seattle, bringing total city markets to 14

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Wondering where to find the best local produce for dinner tonight? You might not have to look too far beyond your own backyard. Two seasonal satellite farmers markets launch this week in Seattle, bringing the total number of city markets to fourteen.

Beginning in June, select vendors from the world famous Pike Place Market will be selling local produce and fresh flowers at two additional markets across the city. The new Pike Place Express at City Hall Plaza will operate Tuesdays on Fourth Avenue between James and Cherry streets. In South Lake Union, the Cascade Farmer’s Market will operate on Thursdays at Pontius Avenue North between Thomas and Harrison streets.

In 2008, more than 500,000 people attended neighborhood farmers markets in Seattle, generating more than $10 million in sales for local farmers and businesses. The City of Seattle and the Office of Economic Development provide reduced fees and streamlined permits to markets, making it easier and more affordable to locate farmers markets on public land. These markets spur economic growth by supporting local farmers and vendors and driving traffic to neighborhood businesses.

For a complete listing of Seattle farmers markets and other markets across Washington state, visit the Washington State Farmers Market Association’s member directory.

Prosperity Partnership event coaches businesses to compete for federal recovery funds

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Interested in using federal recovery (ARRA) funds to work on a collaborative business venture with regional impact? The Prosperity Partnership, a coalition of government, business, labor and community organizations in the Puget Sound region, can help businesses wade through the application process, access federal funding, and achieve high-impact regional results.

The partnership’s next regional ARRA coordination meeting will be held at the Puget Sound Regional Council on Friday, June 26, from 2:00 to 4:00 p.m. This meeting serves businesses by helping them to effectively compete for ARRA funds, with an emphasis on multi-jurisdictional and cross-disciplinary efforts.

The Prosperity Partnership is focusing on seven major categories of stimulus funding opportunity, with an emphasis on important Puget Sound industries:

▪ Aerospace
▪ Clean Energy & Environment
▪ Housing & Infrastructure
▪ Information Technology (Broadband and Health IT)
▪ Life Sciences & Basic Sciences
▪ Workforce & Education
▪ Other Economic Development

Think your business could be a good partner for a project in one of these areas? The June 26 ARRA coordination meeting will be a great opportunity to identify potential business partners and strategies for a recovery funds application. If you can’t attend, the Prosperity Partnership will be holding two more ARRA coordination meetings this summer, on July 17 and July 31.

Learn more about attending a Prosperity Partnership ARRA event, identifying federal funding sources, receiving endorsements for your recovery project from the state, and more at the Prosperity Partnership’s recovery page.

The Office of Economic Development partners with the Prosperity Partnership to nurture long-term economic stability in Seattle and the greater Puget Sound region.

OED celebrates successful partnership with Queen Anne Farmers Market Association

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The Office of Economic Development’s efforts to support the Queen Anne Farmers Market Association and its chair, Julia Whitehorn, finally bore fruit this Thursday with the re-opening of the Queen Anne Farmers Market at its new, permanent location on West Crockett Street. OED’s work with Julie and the QAFMA was a tremendous collaboration that helped preserve a neighborhood market in jeopardy.

Flats of summer strawberries, cauliflower, rainbow chard, sugar peas, radishes, and even “apriums” (half apricot, half plum) were on hand for the opening, as was Mayor Greg Nickels, joined by Councilmembers Richard Conlin and Tim Burgess, Washington State Representative Reuven Carlyle, community organizers, and neighborhood residents.

In a short speech, Mayor Nickels highlighted the public and private partners that made the reopening a success, and explained how farmers markets benefit from changes in the permitting process and reduced fees for holding markets on public property.

“The changes we’re making will benefit local markets, as well as surrounding businesses,” said Nickels. “Not only do farmers markets provide nutritious locally grown food, they add to the character of our neighborhoods and bring our community together.”

Some farmers markets have struggled to keep, or locate on, large enough privately owned sites. The Queen Anne Farmers Market’s relocation to a public site was made possible by rules Nickels announced last year supporting neighborhood farmers markets. An ordinance will be introduced in the coming weeks that will formalize these guidelines and make additional improvements to the permitting process.

The Office of Economic Development’s Karen Selander, the Queen Anne Farmers Market Association, Emerald Bay Equity LLC, Seattle Parks and Recreation, and the Seattle Fire Department partnered to ensure that the market found an affordable public site that would build community and drive Queen Anne neighborhood businesses.

· Read the complete event press release. 

· Watch KCTS 9’s coverage of the re-opening.

· Click to view a map of the new Queen Anne Farmers Market location.

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Local clean technology companies create environmentally sustainable business

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clean-tech-open1Want to learn more about how local technology companies are “greenovating”—or interested in investing in clean technology for your own home or business? Officials at the Clean Tech Open Pacific Northwest will announce twelve semi-finalists in its first annual clean technology business competition at a special event on Thursday, June 25th. Open to employees of competing companies as well as the public, the event will highlight twelve regional companies whose proposals represent outstanding innovation and sustainability in the technology field.

The semi-finalist announcement comes less than a month after a study from the Pew Charitable Trusts declared that “the nation’s clean-energy economy is poised for explosive growth.” The Clean Tech Open and the city of Seattle—recently ranked as the #3 city in the nation for clean technology start-ups—are poised at the center of this growth. A record number of participants at the 2009 Open reflects this rapidly expanding interest; this year, the open received 275 applications to participate – up dramatically from 125 entries in 2008.

The Clean Tech Open solicits business proposals and pitches from young clean energy start-up companies. Semi-finalists participate in an intensive weekend of education, consulting, and mentoring, then submit a 20-page business plan and give a 15-minute pitch to a panel of expert judges. From these semi-finalists, twelve finalists (six from the Open’s California region; three from the Pacific Northwest; and three from the Rocky Mountain region) will compete in the national competition for a chance at the National Prize Package, which includes a large cash award.

The Pacific Northwest Semi-Finalist event is open to paid contestants of the 2009 competition, members of the public interested in the Clean Tech Open or clean tech start-ups, and volunteers.

Visit enterpriseSeattle’s Clean Tech Open event page for more information on how to register for the event.

Seattle’s economic recovery agenda begins with music business

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city-of-music-logo1On Tuesday, May 26th, the Seattle City Council voted 5 to 3 to repeal the admissions tax on small music venues that employ live musicians. Signed into law by Mayor Greg Nickels in June, the legislation will encourage the employment of live musicians and the opening of more live music venues, driving economic development in neighborhoods across the city.

The repeal was originally proposed as part of a long-range economic development package for the music industry, and the Mayor’s Office of Film and Music projects that it will contribute to the opening of eight new music venues in the next several years. The sales and businesses taxes from these venues and the projected increase in the health of the music industry will likely significantly exceed the foregone revenue from repealing the tax.

The exemption is only one aspect of a renewed focus on the music industry for the Mayor, whose City of Music initiative promotes Seattle as a hub for musicians and live music. A 2008 economic impact study on music in Seattle showed that the music industry creates 11,155 jobs and $1.2 billion in sales for the city.

Read the Mayor’s full press release on the tax exemption here.

CTED releases guide for small businesses in Washington

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Many resources are available for small businesses in Washington, but it can be hard to know where to look. A new, comprehensive guide from the Washington State Department for Community, Trade and Economic Development (CTED) is an important tool for small businesses at all stages of development.

The CTED guide provides small business owners and entrepreneurs with instantly accessible information on important federal, state, and local agencies, business associations, economic development centers, government contracts, Innovation Partnership Zones, and more. It also provides tools and resources for developing a business plan and business structure.

In support of green practices, the guide will only be published electronically. Click here to access the CTED guide and other business resources.

June marks 120-year anniversary of Seattle’s Great Fire and the birth of Seattle Public Utilities

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June 6, 2009, marks the 120th anniversary of Seattle’s Great Fire, which started in a cabinet shop on 1st and Madison and demolished 64 acres of the downtown business district in one day. In the wake of the disaster, which the city’s poorly developed, privately-held water system could not contain, Seattle voters voted 1,875 to 51 to install a municipal water system, thus founding Seattle Public Utilities (SPU).

SPU soon developed the Cedar River Watershed, which provided water as well as electricity to most of the city. After more than a hundred years, this watershed is still the primary source of clean drinking water to the city.

From 1889 to 2009, low cost power, water, and other public utilities have fueled business growth in Seattle and the Pacific Northwest.

For more information on the Great Fire, the Cedar River Water Supply, and the history of Seattle Public Utilities, visit Historylink, a free online encyclopedia of Washington state history.

Helping businesses navigate the American Recovery and Reinvestment Act

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recovery-small1In these difficult economic times, many businesses are trying to maximize earnings and minimize tax burdens. The American Recovery and Reinvestment Act of 2009 (ARRA) contains tax incentives and other programs which can provide relief for both large and small businesses.

For businesses unfamiliar with the ARRA, the IRS has just released a guide to the act’s most important provisions.

The U.S. Small Business Administration (SBA) can also provide assistance to small businesses that have been hurt by the economic downturn. SBA’s America’s Capital Loan Program, or ARC, provides an immediate influx of capital to formerly profitable small businesses that are now struggling to remain solvent.

To learn more about how the City of Seattle is seeking federal stimulus funds, or how stimulus money is being spent across the city, visit the Mayor’s economic recovery website.