2014 Annual Report

(360) 377-9499 www.kitsapeda.org

PARTNERS IN ECONOMIC DEVELOPMENT

In 2014 our Kitsap Economic Development Alliance continued to move forward and produce meaningful results. I want to thank our investor/partners and board of directors for all that you give in time and dollars to our Alliance. We are extremely fortunate to have an exceptional membership and board that is deeply committed to improving the economic prosperity of Kitsap County.

For me, the highlight of 2014 was attending the International Economic Development Council National Conference in Fort Worth Texas. Our “Kitsap Connected” video series received the “Bronze Award” for best video presentation, and our Kitsap Aerospace and Defense Alliance received the “Silver Award” for Best Website. Participating in this conference were economic development advocates from throughout North America. We should all be proud to receive this recognition.

Some of the good work we do through KEDA is our Procurement Technical Assistance Center (PTAC). In 2014 we assisted business owners in obtaining government contracts and subcontracts. This program has become one of the cornerstones of our Alliance and enabled business owners to win government contracts valued in the millions. The success of this program is crucial to our economic vitality now and in the future.

Our Alliance is in its strongest position in years. We have an outstanding staff led by our Executive Director John Powers. Our financial condition is sound and we have a committed and diverse board of directors. The future for our Alliance and the economic vitality of Kitsap County is bright.

On(e) Kitsap!

Message from the Chair

Steve Politakis

Board Chair, Kitsap Economic Development Alliance

Chief Executive Officer, Kitsap Bank

Steve Politakis KEDA Board Chair

Air Washington BE$T at Kitsap Community Resources

Central Puget Sound Economic Dev District Greater Kingston Economic Development Committee

Homebuilders Association of Kitsap County Impact Washington

Kitsap Aerospace and Defense Alliance Kitsap Business Forum

Kitsap Chambers of Commerce Kitsap Commercial Investment Brokers

Kitsap Entrepreneurial Center Kitsap Regional Coordinating Council

Kitsap Regional Library Kitsap SCORE

National Center for Manufacturing Sciences Olympic College President’s Advisory Council

Olympic College Workforce Dev Advisory Committee Olympic Workforce Development Council

Pacific Northwest Defense Coalition Puget Sound Naval Base Association

Visit Kitsap Peninsula Washington Aerospace Partnership

Washington Department of Commerce Washington Economic Dev Association

Washington Maritime Federation Washington Military Alliance

Washington State PTAC Washington State University Extension

West Sound Technology Association

WorkSource Kitsap

PARTNERS IN ECONOMIC DEVELOPMENT

Positioned for Prosperity and Growing Stronger

2014 proved to be an exceptional year for our Alliance. Together we reached new heights in serving clients, promoting Kitsap opportunities, and strengthening our organization. 2015 promises to be even better.

Last year KEDA delivered business retention, expansion, and attraction services to over two hundred business clients contributing to millions of dollars in new investment in local business operations and hundreds of new jobs. This was accomplished through the dedicated efforts of our outstanding team of economic development professionals: Kathy Cocus, Business Development Director; Theresa Mangrum, Marketing Manager; Susan Veach, Contract Accountant and PTAC Instructor; Mary Jo Juarez, PTAC Procurement Consultant; and, Mona Carlson, the newest member of our team – volunteer extraordinaire and PTAC Counselor.

Kitsap’s 2014 economic development milestones include: the highest local employment levels in nearly a decade; private sector enterprises we are proud to call clients, moved forward with dozens of new capital projects totaling over $500M; PTAC clients, including Olympic College garnered over $62M in government contract work; and, Olympic College and Western Washington University took their partnership to new levels expanding business baccalaureate programs here in Kitsap.

2014 was also a banner year in our efforts to tell and sell Kitsap’s economic development story. KEDA’s new website attracted more than 27,000 unique visits. And, our multi-media marketing campaign, featuring the Kitsap Connected portfolio of videos, was recognized as among the best in the business by the International Economic Development Council at its annual meeting in Fort Worth Texas last October.

This past year also saw our Alliance begin to play an integral role in working with Kitsap County and local municipalities as they embarked on updating their respective comprehensive plans aimed at effectively welcoming and serving an additional 80,000+ citizens that will call Kitsap home by 2035.

Our board membership continues to be comprised of the senior most business and community leaders from throughout Kitsap – our board is truly our Alliance’s #1 Asset! I want to share a special note of thanks to the members of our board’s executive committee that contribute countless hours of service to our 33 year old public private partnership. They are: Board Chair Steve Politakis, CEO of the Kitsap Bank; Vice-Chair Ben Anderson, CEO of Art Anderson Associates; Treasurer Bob Guyt, Principal with Rice Fergus Miller; Immediate Past Chair, Julie Tappero President of West Sound Workforce; Silvia Klatman PAO – Naval Base Kitsap; County Commissioner Charlotte Garrido; Bremerton Mayor Patty Lent; and Poulsbo Councilmember Ed Stern.

Our board members’ collective efforts to champion economic opportunities in Kitsap really do make a difference in the vibrancy of our local communities and economy.

On behalf of our staff, I want to thank you all for all you do for our community, and, ask for your continued support of our essential work. Together we will seize the opportunities that lie ahead to shape and advance an ever more vibrant economy and prosperous community throughout Kitsap and across our region for generations to come.

We look forward to working with you to make 2015 our best year ever.

On Kitsap!

John Powers

EXECUTIVE DIRECTOR’S REPORT

John Powers

KEDA Executive Director

KitsapConnected multimedia promotion underwriters with IEDC Award. Shown: David Emmons, Bryan McConaughy, Chris Rieland, Russell Steele, Candice Merrill, Elliot Gregg, Julie Tappero, Steve Politakis, Kathy Cocus, Tim Matthes, John Powers

In Thousands

INCOME SOURCES 2014

Private Sector

Partner Investments $ 105,046

In-Kind Investments $ 18,200

Total Private Sector $ 123,246

Public Sector

State ADO Contract $ 99,124

Kitsap County Contract $ 100,000

Public contracts $ 83,000

Grants - PTAC (Including In-Kind) $ 41,236

Total Public Sector Income $ 323,360

Event Income (Including In-Kind) $ 36,941 Total KEDA Operating Income $ 483,547

GKEDC Restricted Income $ 15,500

KADA Restricted Income $ 57,000 Total Income $ 546,047

EXPENSES

Advertising, Marketing & Events $ 56,518

Personnel $ 301,496

Operations & Administration $ 113,423

Total KEDA Expenses $ 471,437

GKEDC Expenses $ 15,084

KADA Expenses $ 38,147

Total Expenses $ 524,668

Net Ordinary Income $ 31,379

OTHER INCOME & EXPENSES

Interest Income $ 55

Depreciation $ 5,278

Net Income $ 26,156

STATEMENT OF FINANCIAL INCOME & EXPENSE

2014 Expenses by Functional Operations

$- $50 $100 $150

2010

2011

2012

2013

2014

Ye

ar

5-YEAR KEDA OPERATING INCOME COMPARISON

In Thousands

Ye

ar

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2014

2013

2012

2011

2010

KEDA 2014 ANNUAL REPORT

Business Retention, Expansion & Recruitment Marketing & Community Development Organization & Resource Development

MARKETING & BRANDING

4 | P a g e 360-377-94312 | Kitsap Way, Suite 103 | Bremerton, WA 98312

Thomas Kurcharski, Chair of IEDC Awards Advisory Committee; John Powers, Executive Director, KEDA; Kathy Cocus, Business Development Director, KEDA; Steve Politakis, CEO, Kitsap Bank and

Chairman of the KEDA Board; and William Sproull, Chair of IEDC Board

SPECIAL PURPOSE WEBSITE:

Kitsap Aerospace & Defense Alliance

VIDEO-MULTIMEDIA PROMOTION

KitsapConnected

INTERNATIONAL AWARDS IN CREATIVE MARKETING

KEDA was recognized for creative marketing by the International Economic Development Council at it’s Annual Conference in Fort Worth Texas.

PARTNERING FOR A STATE OF THE ART WEBSITE & DYNAMIC NEW LOGO

Kitsapeda.org attracts more than 27,000 unique visitors in 2014

KEDA launched it’s new website at the 2014 January Decision Makers Breakfast. The website was modeled after best in class economic development sites and standards. KEDA is extremely grateful to Applied Technical Systems, ATS, Inc. for providing a significant in-kind contribution, along with the vision, skills and local knowledge required to produce a first class website.

The RockFish Group also provided a generous in-kind contribution that led to the creation of a vibrant new KEDA logo and collateral material that effectively Tells and Sells the Kitsap Story!

2014 Top Website Downloads:

www.kitsapeda.org

4039 Capability Statements

623 NAVFAC Prime Contractors

393 WA State Rail Map

367 2014 KEDA Work Plan

251 KEDA Board of Directors

209 2013 Top Employers (private)

208 Keyport Industry Day

KEDA 2014 ANNUAL REPORT

STRONG BRANDING TO TELL & SELL THE KITSAP STORY

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0

200

400

600

800

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

LinkedIn Facebook Twitter

13 Videos in Portfolio

2,362 Total Views (2014)

1,676 Website Views (2014)

KEDA 2014

SOCIAL MEDIA FOLLOWERS

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TARGET ACTUAL

New Private Investment $5M $10M

Kitsap Companies Assisted 150 159

Employment at Assisted Companies 6,477^ 5,439

Kitsap Firms Referred to Aerospace 10 6

Jobs Supported/Created (direct assistance) 225 895

Information Research/Referrals 200 198

New Business Generated# $20M $62.5M

Trade Shows Attended 5 10

Recruitment Leads Generated 25 33

Recruitment Visits to Kitsap County 5 1

^ 2013 actuals

# Federal contracts as reported in USA Spending.gov

Business Assistance

KEDA is able to fulfill many business assistance requests immediately.

Others, particularly larger recruitment and expansion cases representing

large employment bases or challenging site selection requirements,

require extended consultations and assistance. Many of these cases can

span 18 months or more. Throughout the case activity, KEDA provides

consistent communication and professional assistance to the client, with

referrals, introductions and

1154

783

Companies Directly Assisted

KEDA at Work 2008-2014

KEDA Annual Meeting (March)

Decision Makers I & II (Jan and October)

19 PTAC workshops (direct & assisted)

Quarterly Full Board Business Briefings

Global Entrepreneurship Week Activities

Monthly Kitsap Business Forum

Business Events & Education

31 E-newsletters—News & Events, Biz Opps

115 Custom Research and Demographics

48 Community Presentations & Reports to Jurisdictions

24 Monthly KPBJ Columns & Display Ads

5 Selling to the Government columns

4 Kitsap Economic Indicators

3 Pop-up Trade Show Banners

#KitsapConnected Digital Ambassador Campaign

KEDA Website, Brochure and Logo

MARKETING & BRANDING

2014 Target & Actual Performance

BUSINESS RETENTION, EXPANSION & RETENTION

Research, Communications & Marketing

Employment at Assisted Kitsap Companies Kitsap Companies Assisted Custom Reports & Research

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Referrals/Information/Contacts

Companies Directly Assisted

640

1821

3718

6748 6744

5439

2009 2010 2011 2012 2013 2014

11

6753

4254

115

2009 2010 2011 2012 2013 2014

113124

10896

180159

2009 2010 2011 2012 2013 2014

KADA Key Accomplishments

Kitsap delegation at the Farnborough Air Show:

Tim Thomson, Charlotte Garrido, Governor

Jay Inslee, Trudee Inslee, and John Powers

7

31

39

12

15 Bainbridge Island

Bremerton

Kitsap County

Port Orchard

Poulsbo

Federal Government Contracts

KEDA 2014 PTAC Activity: 9 Government Contracting Workshops

93 Businesses receiving one-on-one counselling

11 Supported PTAC related events including:

Kitsap PTAC Clients Assisted - 2014 Kitsap PTAC Clients Assisted - 2014

— Selling to the Navy

— Alliance NW

— Prime Outreach Events

— Seaport-e Outreach

$13,160,315

$43,012,384

$14,939,591

$51,950,003

$34,005,892

62,518,363

2009 2010 2011 2012 2013 2014

www.kitsapeda.org | www.kitsapconnected.org 7 | P a g e 6 | P a g e 360-377-94312 | Kitsap Way, Suite 103 | Bremerton, WA 98312

In 2014, Kitsap PTAC

clients were awarded

over $62.5 M in federal

government contracts

and subcontracts

Celebrated Omohundro’s 1 year anniversary in Kitsap

Assisted Kitsap manufacturers in securing new aerospace clients

Continued to cultivate strong client relations with key Kitsap Defense Contractors

Partnered with OC, Air Washington, and Workforce Development Council on expanding manufacturing skills training

KADA leaders Patty Lent, Mayor of Bremerton, and Kitsap County Commissioner Charlotte Garrido, were signatories to Governor Inslee’s executive action constituting the Washington Military Alliance (WMA); and, KADA co-chair, John Powers, is appointed to the WMA executive leadership team

Partnered with WA Dept. of Commerce, Washington Aerospace Partnership, and Governor’s Office of Aerospace, in participating in a dozen strategic conferences and industry trade shows, includ-ing sponsoring a delegation to the Farnborough Air Show

Published 3rd Annual Report on www.kitsapaerospace.com

KEDA 2014 ANNUAL REPORT

EXECUTIVE COMMITTEE:

Steve Politakis, Chair, CEO, Kitsap Bank

Ben Anderson, Vice-Chair President & CEO, Art Anderson Associates

Bob Guyt, Treasurer Principal, Rice Fergus Miller

John Powers, Secretary Executive Director, KEDA

Julie Tappero, Immediate Past Chair President, West Sound Workforce

Tom Danaher, (through 6/12/2014) Public Affairs Officer, Naval Base Kitsap

Silvia Klatman (beginning 12/11/2014) Public Affairs Officer, Naval Base Kitsap

Charlotte Garrido, Commissioner, Kitsap County

Patty Lent, Mayor, City of Bremerton

Ed Stern, Councilmember, City of Poulsbo

DIRECTORS:

Anne Blair, Mayor, City of Bainbridge Island Steve Bonkowski, Council Member, City of Bainbridge Island Scott Bosch, CEO (through 5/29/14) Harrison Medical Center

Marcus Hoffman, Commissioner, Silverdale Water District

Erin Leedham (as of 3/20/2014) General Manager, Kitsap Mall

Tim Matthes, Mayor, City of Port Orchard

Mary McClure, Executive Director, Kitsap Regional Coordinating Council

Bryan McConaughy, (as of 5/15/2014) Sr. Local Government Affairs Rep, PSE

Dr. David Mitchell, President, Olympic College Brent Morris (as of 3/20/2014)

Publisher, Kitsap Sun Chris Rieland, CEO & President,

Pacific NW Title Jon Rose, President,

Olympic Property Group Chad Solvie, CEO,

Martha & Mary Russell Steele, CEO,

Port Madison Enterprises Larry Stokes, Commissioner,

Port of Bremerton Dwight Sutton, Emeritus

Greg Wheeler, Councilmember, City of Bremerton

Linda Brown, CEO, The Doctors Clinic Jim Carmichael (emeritus as of 3/31/2014) Jim Carmichael & Associates Jerry Childs, Councilmember, City of Port Orchard Jim Civilla, Commissioner, Kitsap PUD (beginning 5/28/2013) Lary Coppola, President & CEO,

Wet Apple Media Pete DeBoer, Commissioner, Port of Kingston Judy Mentor Eagleson, President, Mentor Company Becky Erickson, Mayor, City of Poulsbo Leonard Forsman, Chair, Suquamish Tribal Council John Gardner, Dean (through 3/31/14) Bainbridge Graduate Institute Mark Gulbranson, Deputy Exec. Director, Puget Sound Regional Council Elliot Gregg, CEO,

Kitsap Credit Union Ed Hallda, VP Strategic Development, Applied Technical Systems Steve Hayes, VP of Sales, Watson Furniture Group (as of 12/11/2014)

KEDA INVESTOR/PARTNERS

2014 KEDA BOARD OF DIRECTORS

*Includes January 2014—January 2015 investors.

Accountability Plus, Inc. Alpine Evergreen

Applied Technical Systems

Art Anderson Associates

Baymont Inn & Suites

Best Western Plus, Silverdale Beach Hotel

Bradley Scott, Inc.

Bremer Trust

Cascade Natural Gas

Chiropractic Health Center

City of Bainbridge Island

City of Bremerton

City of Port Orchard

City of Poulsbo

Columbia Bank

Compensation Consultants

Evoke Networks

Excell Puget Sound

Executive TimeSlice

Exideo Consulting

Flamingo Audio

General Dynamics NASSCO

Hampton Inn & Suites

Harrison Medical Center Hurley, Williams & Cook PS

Jim Carmichael & Associates

JHarrison Solutions

Kingston Stakeholders

Kitsap Bank

Kitsap Commercial Investment Brokers

Kitsap Conference Center

Kitsap County

Kitsap Credit Union

Kitsap Mall

Kitsap Mental Health Services

Kitsap Peninsula Business Journal

Kitsap Public Facilities District

Kitsap PUD #1

Kitsap Regional Library

Kitsap Sun Kitsap Transit

Land Title Company

Le Gamarche’ Catering

Liberty Bay Bank

Lyons Painting & Design, LLC

Martha and Mary

Mentor Company

National Center for Manufacturing Sciences

North Kitsap School District

Nova Group, Inc.

Olympic College

Olympic Property Group, LLC

Pacific Northwest Title

Paratransit Services

Peninsula Subaru

Port of Kingston

Port Madison Enterprises

Port of Bremerton

Propel Insurance

Puget Sound Energy

Puget Sound Regional Council

Rice Fergus Miller

SAFE Boats

Shelter Bay Group

Silverdale Water District

Skookum

Stirrett Johnson

Suquamish Tribe

Sustainable Media Group

The Doctors Clinic

The RockFish Group

Tim Ryan Construction

Washington State Dept. of Commerce

Watson Furniture Group

Wells Fargo

Westbay Auto Parts

West Sound Workforce, Inc.

Western Washington University

Wet Apple Media

White Horse Golf Club

Windermere Real Estate