Port of Everett and Snohomish County Reach Investment Agreement
The Port of Everett will receive an investment of millions from the Snohomish County Treasurer’s Office while agreeing to deposit millions into the County Treasurer’s Investment Pool in what both are calling a local win-win. Here is the explanation.
On April 5, 2022, the Port of Everett Commission authorized the sale of a $15 million treasury bond to the Snohomish County Treasurer’s Office, marking a first-of-its-kind investment by the county to fund infrastructure of local economic development at the port.
The action allows the port to leverage its excellent A2 bond rating and reliable debt service capacity to creatively finance the construction of its new Millwright Loop Roadway project which is due to start later this year.
This key public infrastructure connection paves the way for work to begin in the Millwright district – the second and largest phase of the harbour’s Waterfront Place mixed-use development – adding nearly 200 new multi-family housing units, 250,000 square feet of new retail and commercial amenities, new public spaces and jobs.
“What a great opportunity this is to expand our partnership with Snohomish County and further support economic opportunity,” said Harbor Commission Chairman David Simpson. “Waterfront Place is Snohomish County’s waterfront destination with something for everyone. We are grateful to Treasurer Brian Sullivan for thinking outside the box with us to find a creative and flexible way to invest in jobs and move this project forward.
This investment is being piloted by the Treasurer’s Office as part of its new community investment program which aims to invest locally while providing direct economic and community benefits to the county.
“I am thrilled to partner with the Port of Everett to build public infrastructure that will bring new jobs, housing and community assets,” said Snohomish County Treasurer Brian Sullivan. “This port project is the first in a long series that will be part of a new treasury program that makes direct and secure investments in county infrastructure in a way that facilitates economic development. I look forward to fully rolling out this program to other entities with key projects in the county and expanding the program to invest even more in the future.
The Snohomish County Treasurer’s Office manages approximately $1.2 billion in short- and long-term investments. They have a long track record of investing its funds in special purpose cities and districts, such as schools, public safety, utility districts, hospitals, libraries and now, port districts.
Public funds are invested in accordance with best practices and procedures, and in accordance with the Snohomish County Investment Policy, as well as all federal, state and local laws.
“This strategic investment by Snohomish County will benefit the quality of life for all residents to construct the causeway and open lanes for the harbor to fund the Millwright Loop Roadway infrastructure project,” the County Council Chairperson said. of Snohomish, Megan Dunn, whose district includes the Port of Everett. “I am thrilled to see the collaboration and continued development along the Everett waterfront, which provides jobs, recreational opportunities and community amenities for everyone who lives in Snohomish County.”
Funding is secured by a junior lien on Port revenues with notes to be issued at the Treasurer’s Office by the Port up to $15 million. This allows the port to avoid interest on borrowings until the funds are spent. The port must withdraw at least $1 million at a time.
The initial interest rate is set at 0.75% on 5-year cash and would be adjusted upon execution of renewal options. The Port can renew up to three times. After 20 years, the tickets must be refunded.
As part of the deal, the port will deposit $5 million into the Treasurer’s Investment Pool. These funds will earn interest to the Port.