They grow up so fast…it seems like only yesterday that Congress passed the American Recovery and Reinvestment Act of 2009. In fact, it was not yesterday, but rather February 13, 2009. Which makes today the nine month anniversary! If you and your spouse had been so turned on by the stimulus that you conceived, you would be having a baby today.

What I remember most about that day on February 13 was everyone in the region running around with their hair on fire (figuratively) talking about how all the money was going to be allocated immediately and that we were going to miss out on it unless we acted fast. For better and for worse, that didn’t happen, and there are actually a number of major opportunities still open. On this happy day, here are a few to keep an eye on (or apply for!):

• Competitive EECBG Grants: A bunch of money has already gone out to local governments by formula (or through states for smaller jurisdictions), but now there’s an opportunity to apply for more than $450 million for “community-wide” energy retrofits and market innovations.  A city can get up to $75 million to do an energy retrofit of an entire neighborhood! (Closes December 14)

• State Energy Program, Round 2: In January, the State of Washington is going to release another $15-20 million in loans and grants for commercialization of clean energy technologies.  There’s also going to be a second round of the Department of Energy’s ARPA-E, speaking of investing in new technology.

• Workforce Training For The Electric Power Sector: We already found out who got the “smart grid” money (go SnoPUD!), but now there’s money to train the workers who will operate the new electrical system. (Closes at the end of this month)

• Race to the Top: States are competing in two rounds for big pots of money for K-12 modernization and reform. (We may or may not be that competitive.)

• Broadband Technology Opportunity Program: We haven’t found out about the first round yet, but there’s more broadband money coming in two additional rounds next year…and I’m getting the impression that they’ll be a little more “urban-friendly” the next times around.

• Communities Putting Prevention to Work: Large public health organizations can get up to $20 million for obesity prevention, nutrition, and tobacco cessation programs.  Why do we care (other than health is important)?  A portion of the obesity strategy is around encouraging smart growth and multi-modal transportation choices.

• Health IT: We’re just starting to see this money come out. There are some current opportunities (regional extension centers) and some (health IT workforce training) yet to drop.

And that’s not to mention the grants that are closed, but we haven’t heard about yet, including all the green jobs and healthcare jobs money, the Neighborhood Stabilization Program, High Speed Rail and TIGER Grants. Yes, our little baby’s still got a lot of growing to do. Let’s make a wish for lots more to come to this region as we blow out the celebratory candle!

About  a year ago, there was a lot of talk about “let’s see this recession as an opportunity!”  And, as much of a hackneyed phrase as that is, it does make some sense. When the going gets tough, the best take advantage of it to increase their market share. 

When you’re a business, that’s about using cash reserves to purchase undervalued assets.  When you’re a government, that can mean using a crisis to change policies that have long been viewed as less friendly to economic development but were always politically untouchable during better times.  Some people might say that the recent Seattle head tax repeal was just such an example. But why haven’t I heard anyone talking about taking down one of the Big Washington Economic Development Barriers?

If you work at all in economic development in this state, you hear two complaints over and over again:
1) No TIF: Tax Increment Financing is everyone’s favorite “build now, pay later” device.
2) No Lending of Credit: Lots of other states attract new businesses the old fashion way – giving them huge bags of cash.

I know that these are both things that are currently “unconstitutional” and that voters have turned down changes to in the past, but the whole point is that these are uncommon times. When I-1033 goes down in over half the state’s counties, you might get the sense that people are seeing that government can be part of the solution, not just the problem. When used right, these are tools that help create jobs, and that’s what we need more than anything else right now.

So, who’s out there that’s going to take up the flag and lead us into battle?

One of the things that we’ve heard repeatedly in the last few years is that Washington State’s tourism promotion budget ranks in the bottom 20% compared to other states in the country…and it hasn’t been getting better in the last year as we have dealt with huge budget deficits.  But just when you think it couldn’t get worse, you see that Connecticut has cut their Tourism Commission budget to $1.

Every night, I see those commercials on television from California’s $50 million campaign to attract tourism (ending with the Governor asking the camera “Vhen kan you staat?”). To be honest, they’re really clever and they make me want to go to California, but – like most of us – I don’t have a lot of extra money these days for pleasure trips. Which is why California is taking advantage of its West Coast location and the weak US dollar to go after the foreign travel market.

Hmmm…who else has a West Coast location and could be a great market for foreign travelers? I’ll give you a hint: Go Ichiro! And yet, because it takes money to make money, legislators across the country fall into the trap of seeing tourism promotion budgets as frivolous and easy to cut, rather than smart investments to make…especially at a time when we can use all the extra economic impact we can get.

I think that the guy from Long Island says it best (isn’t that always the case) in reference to the Connecticut tourism budget:

You guys are falling off the map, and it makes our job easier,” said Moke McGowan, president of the Long Island Convention and Visitors Bureau, speaking of his Connecticut counterparts.

I couldn’t agree more, Moke.  To me, it all comes down to a phrase I heard recently that I think is the best (and accurate) way to convince people that tourism is a great investment, even in bad economic times, and I think we need to start using it more: “Tourists pay taxes here so that we don’t have to.”  Seriously…apparently the average person in our state pays $400 less in taxes because of tourism.  In our tax averse state, that’s practically grounds for sainthood!

Representatives from two Seattle employers (Microsoft and PATH), KONE Corporation in Helsinki and Fukuoka Urban Laboratory suggested the needs of creative companies to grow and attract talent.

Each discussed the need to continue investing in research, each discussed the primacy of attracting talent to their regions and companies, and each talked about the fact that intellectual companies are inherently less placebound than ‘old school’ manufacturers.

They were asked to tell us what they look for in a region. 

A welcoming business climate is a foundation – taxes, regulations, transport, etc.  But then the needs diverge.  Creative companies are highly interested in research support, good institutions of higher education, quality public schools, an understanding and protection of intellectual property, healthy arts and cultural institutions, and an embrace of diversity and multiculturalism.  These were explicitly outlined by DeLee Shoemaker of Microsoft.

The key point emerging from this discussion is that ultimately people and their ideas are the drivers.  Good thing, since that’s what the whole point of the conference 

Scott Jackson, Vice President of PATH, interviewed one of PATH’s recent recruits to Seattle on why she chose to move from Washington, DC to Seattle.  She said several factors were important in deciding to come to Seattle:

• Professional development – could PATH and Seattle allow her to achieve the personal and economic growth she was looking for?
• Mission – is there a way for her to impact lives in Seattle (through PATH of course that’s a yes)?
• Acceptance – does Seattle care about global health and is her industry embraced?
• People – does Seattle have the people she wants to be around?

Scott’s conclusion sums it up well: “Each of us is a key determinant as to whether others want to move here.”

We will soon begin hearing about how various cities perform on talent attraction metrics, and about the IRBC’s own research on why people choose where they choose and how we are doing at providing those things.

Gaudi in Barcelona

Today, the second meeting of the International Regions Benchmarking Consortium begins in Barcelona.

The consortium was started two years ago by PSRC and the TDA of Greater Seattle, as a way to measure our economic performance against that of our peers around the world.  Other regions that are participating are Barcelona, Stockholm, Helsinki, Munich, Dublin, Vancouver BC, Fukuoka (Japan), Daejon (S Korea), Cape Town and Glasgow. 

Last year’s first meeting took place in June 2008 in Seattle.  This year, 15 delegates from the Puget Sound region are in attendance.

The theme of this year’s conference is Creativity and Talent in an Urban Environment.  Today is creativity, tomorrow is talent.  I will post as often as our internet connection and our rigorous schedule allow.

It might surprise many in this region to know that the Defense industry sector of military installations, has been an unqualified growth sector. Can you name one job site that has gained 13,000 jobs since 2004?

If you’re having trouble naming just one, here it is: Fort Lewis.

Just last week, a delegation from Washington composed of members from the Governor’s office, the Pierce County Executive’s office and Economic Development Dept. as well as the City of Lakewood and the Tacoma-Pierce County Chamber attended the Office of Economic Adjustment’s (OEA) Partnerships for Success conference.

Among many matters of import learned and exampled at the OEA Conference was the Executive Order 12788. In addition to setting up a Defense Economic Adjustment Program and an Economic Adjustment Committee composed of the Secretary of Defense and inclusive of virtually all the cabinet positions as well as major executive branch offices and administrations, the act mandates a prioritization among communities:

Sec. 5. (b) (2) Afford priority consideration to requests from Defense-affected communities for Federal technical assistance, financial resources, excess or surplus property, or other requirements that are part of a comprehensive plan…

The City of Lakewood is now lead for a regional effort to develop a plan to address the impacts associated with the growth at Fort Lewis.

So Boeing’s opening a second line in South Carolina.  Inevitably, fingers will be pointed. But at whom?  Well,

“Times have changed,
the economy’s gotten worse;
Boeing in South Carolina,
I just want to stomp & curse;
Should we blame the government
or blame the big old boss
or should we blame the union for the loss?
No, Blame Canada! Blame Canada!
With all their beady little eyes
And flapping heads so full of lies
Blame Canada
Blame Canada
We need to form a full assault
It’s Canada’s fault!

Don’t blame us
because they flee
they don’t like gutter balls
but they like Governors coveting Argentines
It’s about customers
everyone likes to say
but does that make it all okay?
No,  blame Canada
 Blame Canada
It seems that everything’s gone wrong
Since Canada came along
Blame Canada
Blame Canada
They’re not even a real country anyway

My son could’ve been a machinist or an engineer,
Instead he burned up like kindling on great Mount Rainier
Should we blame the matches?
Should we blame the fire?
Or the doctors who allowed him to expire?
heck no!
Blame Canada
Blame Canada
With all their hockey hullabaloo
And that witch Anne Murray too
Blame Canada
Shame on Canada
For…
The move we must stop
The line we want back
The Laughter and fun
SC be undone
We must blame them and cause a fuss
Before somebody thinks of blaming uuuuuuuuuuuuuuuuuuuus!!!!

Warning: Video contains kids with potty mouths singing.

Apologies to those of you who have seen this list in past years, but this is the first time I’ve seen Slate’s 80 over 80 list. First off, it’s a pretty hilarious spin on the standard 40 Under 40 that we see in places like our own Puget Sound Business Journal. Second: Barbara Walters is 80! (Clint Eastwood is 79!) Third: man, there are a lot of elected officials holding really important offices on this list, and that does not make me feel super comfortable. Fourth, and actually relevant, is that #12 on this list is Bill Gates, Sr. Which gets me to thinking: are we taking enough advantage of Bill Gates, Sr. in Washington state?

We tend to get excited out here in the Pacific Northwest when we get national recognition, mostly because it feels like the rest of the country forgets that we’re up here most of the time. Anyone else tell east coasters that they live in Seattle and get that “wow, how many hours did it take to fly to New York? are there even direct flights?” look? So we crow about how we’re number one as a youth magnet city or top five as a great place to do business. But half the point of these rankings is to give different cities the top spot so that everyone buys the magazine that year. You can’t take it too seriously.

It’s different though when one of our citizens gets an award, particularly someone who’s not in the spotlight all the time. Maybe it’s just that – compared to his son – he’s only somewhat rich and powerful and incredibly accomplished, but you just don’t hear him listed when you talk about the major regional players. His last big public effort was tax reform. Now, obviously, there aren’t much more important, effective things that a person can be doing than giving away $30 billion dollars toward solving the world’s greatest problems, and it probably doesn’t leave that much time for big public service roles.  But I just wonder whether there’s some commission or committee or – dare I say it – elected office that we should be trying to recruit him for.

I’ll write this as quickly as I can before I get shot at point blank range for the corny title. Just came back from hearing United Nations Secretary General Ban Ki-moon speak at a World Affairs Council sponsored event. The Secretary General spoke on what he asserts are four critical issues for our little spinning globe: 1) climate change; 2) nuclear weapons; 3) extreme poverty; and 4) security, peace and human rights issues.

As interesting as what Secretary General Ban said is, just as interesting for my beat is that he was here in the Greater Seattle area. It was the first time a sitting UN Secretary General has spoken in our region but he is also one of numerous international dignitaries that come through our region each year, including heads of state. We’re a mid-sized town in America but one with an outsized international profile.  Yes, a third of our jobs are tied to international trade in way or another but also the industries we are engaged in are global ones.  Plus, we have a huge global development sector here. The Bill and Melinda Gates Foundation is headquartered in Greater Seattle but there are also 350 other global development organizations in our region, both big and small. They employ thousands of people and are active on every continent save Antarctica (and for all I know there’s someone from our region doing work there too). In other words, there’s a reason the U.N. Secretary General came to our region to talk about weighty global issues.

Never to be accused of being a pessimist, I return after a long absence in these here parts with good news: Delta Airlines is not adding one but two new international routes to Sea-Tac Airport and expanding on another one.  Beginning in the summer of 2010, Delta will begin flying to Beijing, China and Osaka, Japan which just happen to be important cities of two of our region’s largest trading partners.  In addition, Delta is increasing the number of flights to Amsterdam per week from seven to ten (making it easier for Jules to get his Royale with Cheese).

As a sometimes frequent international traveler, this can only make my life better. And, isn’t that what we’re all here for? A side benefit, of course, is that because our region is so tied to the international economy, it’s going to make lots of other Puget Sounders’ lives better too.  It will strengthen our internationally-bent economy making it easier for our businesses to welcome their overseas customers and to travel to important markets. It will also make it easier for Chinese investors and tourists (of which we are seeing more lately; Japan is already one of our largest sources for tourists and investment) to spend their money here.

I’ve got the Delta Blues, in a good way.