Shortly after taking the helm last year of the beleaguered Kitsap Regional Economic Development Council (KREDC), one of the first things Executive Director David Porter convinced the county commissioners to do, was reduce the annual amount the county contributes to the group. In 2003, the KREDC received $85,000 in funding from the county. What Porter proposed is that the county reduce that to $72,000 for 2004.
However, the proposal came with a string attached — what Porter termed a “Challenge Grant.” The terms were, if the KREDC could raise $50,000 from the private sector for a special marketing outreach fund, the county would match that amount. Given the group’s fairly lackluster performance over the years, coupled with the business community’s dismal support, that appeared to be a bet the county commissioners could only win.
In recent years, the KREDC’s marketing budget has averaged around $10,000. Porter, who previously served as Marketing Manager for the Fairfax County Economic Development Authority in Northern Virginia before coming to Kitsap County, oversaw a marketing budget there in excess of $5 million annually. He noted dryly, “You really can’t buy much mind share for $10,000.”
Porter then challenged the local business community to take a leap of faith and step up to support the organization’s efforts by funding its marketing outreach program with the $50,000 needed to trip the county grant.
Last week, less than six months after making his pitch to the commissioners, Porter proudly notified first the KREDC board, and then the commissioners, that it had achieved its goal of raising that $50,000 from the private sector. Putting his money where his mouth is, Porter personally kicked in the first $1,000 to establish the fund — and the last $3 needed to put the group over the top — out of his own pocket.
“The commissioners were actually pretty excited about this. Having the availability of marketing funds like this, that normally wouldn’t be in our budget, puts us in the league to run with the big dogs,” said Porter proudly. “It also allows us to take advantage of opportunities on short notice when they come up, and to showcase our private sector support.”
Commission Chair Patty Lent, was equally as enthusiastic. “I think that they really went out into the community and did the hard work necessary to gain the needed support and establish their credibility,” she said. “Based on the KREDC’s performance, the county is even willing to increase that amount for 2005. We think it’s a great partnership. This benefits not only the county in terms of increased business, which generates additional tax revenue, but the entire business community as well.”
In his short time here, Porter has re-energized the KREDC. There is quite a bit of local buzz around its activities — most notably having to do with its role in the distinct possibility of landing a NASCAR track. But the KREDC has stepped up its activities at all levels, and the business community is beginning to believe in the organization again for the first time in a long time.
Porter has been very active in supporting the revitalization efforts underway in downtown Bremerton, revamped the KREDC’s funding mechanisms, realigned the board to include not only local heavyweight private sector business leaders, but Navy, government and tribal leaders from all parts of the county as well. He has also established the KREDC’s presence on the Puget Sound Regional Council (PSRC). The PSRC is the organization that determines what local jurisdictions receive federal and state funds for transportation and other infrastructure projects among other things. Mark Gulbranson, chief executive officer of the PSRC, now sits on the KREDC board.
Porter’s hard work appears to be paying off, as local business leaders are more supportive of the organization than at any time in its history.
“We’re very pleased with the turnaround we’ve seen since David’s come on board,” said Jim Carmichael, president of Kitsap Bank. The bank, which had been only lukewarm in its previous level of support for the KREDC, stepped up with a $50,000 commitment over three years. Carmichael, who also joined the board, now serves as treasurer of the group.
“We believe there’s opportunity that’s been brought about by the change in leadership and the fact an experienced economic development professional is running the organization,” said Carmichael. “We want to be part of that, and I encourage other businesses that have their doubts — just like we did — to come and see the changes that have been made and to get involved.”
Among the other businesses besides Kitsap Bank that have jumped on the KREDC’s bandwagon with notable contributions to the marketing fund are Paladin Data Systems, The Homebuilder’s Association, Overton & Associates, Ahearn Electric, Jennings Corporation, Clearwater Casino, Kitsap Credit Union, Viking Bank, Olympic Resource Management, Johnson Controls, Sprint, Windermere Real Estate, Wet Apple Publishing, Harrison Hospital, Kitsap County Investment Brokers, Jasonn Partners, North Stream, W&H Pacific as well as a number of individuals. Notably absent from the list are all of Kitsap County’s auto dealers — arguably the largest beneficiaries of improved local business conditions.
The special outreach fund is being used to market Kitsap County outside of this area as a good place to do business. Porter has been targeting California, which due to that state’s excessive regulations and taxation, is experiencing a massive outflow of companies seeking a more business-friendly climate. In fact, the KREDC has a full-page ad scheduled to run in California CEO Magazine, which is doing a special Business Washington Report showcasing our state and what it has to offer to companies there.
And the competition to lure California companies away is fierce. For example, the aggressive Fairfax County Economic Development Authority, where Porter worked prior to coming here, has plans to open two offices in the Golden State — one in the technology-laden bay area and another in southern California.
The KREDC has also used some of its marketing money to establish its presence at national business site selector events, which resulted in its recently hosting a number of nationally known site selection consultants who spent a day here touring the county and seeing what it has to offer their clients.
Porter and KREDC Board Chair Dwight Sutton also just returned from the International Economic Development Council (IEDC) annual conference in St. Louis. The organization is also sending its Business Recruitment and Retention Manager, Kathy Cocus, to South Florida later this month for the International Boat Builder’s Exhibition and Conference (IBEX) in Miami and the Ft. Lauderdale International Boat Show — one of the world’s largest. She will be working as part of the Washington State Community Trade and Economic Development (CTED) team that will be interacting directly with marine industry manufacturers and suppliers from around the world.
Porter is excited about the future and passionate in his quest to bring new business to the county. “There will be increased opportunities for the private sector next year,” he stated confidently. “In 20 years in this business, I’ve never heard of a partnership that’s been so successful in generating this kind of revenue for marketing. This type of relationship between the public and private sectors is unprecedented, and I’m proud to be a part of a community that is willing to embrace the future with this kind of energy and commitment.”
For more information about the KREDC, or to become involved, contact Porter at (360) 377-9499 or
porter@kitsapedc.org.
