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

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

PSRC Defense Cluster Roundtable Puget Sound Naval Base Association

SCORE

Visit Kitsap Peninsula

Washington Aerospace Partnership

Washington Department of Commerce

Washington Economic Dev Association

Washington Military Alliance

Washington State PTAC

Washington State University Extension

West Sound Technology Association

WorkSource Kitsap

2013 Annual Report

(360) 377-9499 www.kitsapeda.org

PARTNERS IN ECONOMIC DEVELOPMENT

As KEDA wraps up our year, we have many accomplishments to celebrate.

KEDA is a key player in the Kitsap Aerospace and Defense Alliance. We were able to par-ticipate for the first time in the Paris Air Show. And during the year we assisted an aerospace company with their relocation to Kitsap County.

We’ve had the opportunity to assist over 150 businesses, resulting in attracting and retaining over 250 jobs. Our PTAC efforts have assisted Kitsap businesses in securing millions of dollars in government contracts.

The organization itself has increased its funding from its private sector partners. Together with our public sector partners, we have worked to increase Kitsap’s visibility in the region and to promote Kitsap County as a desirable place to do business.

We are focused on key sectors such as advanced manu-facturing, defense, maritime, aerospace and technology. By executing on our strategic plan, we will continue to see job growth in those sectors.

The Seahawks won the Super Bowl because they had great team players, strong coaching, laser focus, a solid game plan, and lastly they had the 12th Man. We like to say Kitsap is “positioned for prosperity” with our strong team, Board leadership, great product, and the focus on a solid strategic plan. You are our 12th Man. As we execute on our plan next year, please be at our side cheering us on.

We can’t do it without you.

Message from the Chair

Julie Tappero

Board Chair, Kitsap Economic Development Alliance

President, West Sound Workforce

Julie Tappero, KEDA Board Chair

Reflect, Give Thanks, Power Forward

As we convene our Alliance’s 33rd Annual Meeting, I want to take a moment to reflect and count our community’s many blessings as we prepare to advance our Alliance’s work at an ever increasing pace in pursuit of new opportunities that lie ahead.

This past year was very productive; and, for that I want to thank our terrific team: Kathy Cocus, Business Development Director; Theresa Mangrum, Marketing Manager; Mary Jo Juarez, Procurement Consultant; and, Susan Veach, Contract Accountant and PTAC Instructor. Over the past 12 months KEDA has directly advised and assisted 150+ business clients in securing over $25M in new business and impacting over 250 jobs in our community. In addition to posting solid results from our business retention and expansion work in 2013, we welcomed Omohundro, an aerospace composites manufacturer to Kitsap. Our workforce, training programs, and quality of life were key factors in their decision to relocate from California.

Our thirty-six member board of directors (18 business leaders and 18 elected officials) ensures our Alliance has the resources to connect existing and new business clients to resources and relationships that help them grow and prosper in Kitsap County. After two years of outstanding leadership, Board Chair Julie Tappero, President of West Sound Workforce will pass the leadership baton to Steve Politakis, CEO of Kitsap Bank. Stepping into the role of Vice Chair will be Ben Anderson, CEO of Art Anderson Associates; and Bob Guyt, Principal with Rice Fergus Miller has been nominated to serve as Treasurer. These outstanding leaders carry on a long legacy of Kitsap community influencers that have guided our Alliance and helped to create immeasurable economic opportunities for thousands of proprietors and business enterprises for more than three decades.

This past year has seen the Kitsap Economic Development Alliance emerge as an even stronger player in the Greater Seattle Region, leading the way in the military and maritime sectors, and securing new opportunities for local businesses in aerospace, advanced manufacturing, and technology. 2013 also saw an increase in regional collaboration including execution of the Central Puget Sound Economic Development District Regional Strategy, and Kitsap’s first annual Global Entrepreneurship Week (GEW). The successful collaboration behind GEW led to discussions and multi-chamber and agency partnering to improve and expand the Kitsap Business Forum. A year of exceptional collaboration was capped off with the Olympic College and Western Washington University partnership to offer new baccalaureate programs at the Poulsbo Campus.

Since its debut at last year’s annual meeting, KEDA’s KitsapConnected multi-media marketing campaign now features thirteen videos and has received acclaim from our state and regional partners. Sponsored by our investors, this first-class campaign is making a measurable difference in the way we work with the broad community to tell and sell Kitsap’s economic development story. As the year unfolds we look forward to expanding our online presence and reach via our new Digital Ambassador program, social media channels, and newly launched website.

Finally, as we march into the coming year, our leadership team will focus on accelerating the rate at which we engage and serve our business clients. Our strategic work plan calls for a substantial increase in our direct outreach and recruitment activities with a targeted focus on advanced manufacturing, in both maritime and aerospace, as well as the defense and technology sectors. We look forward to working closely with Kitsap County and Kitsap’s cities as they embark on extensive updates of their respective Comprehensive Plans – important public policy tools for economic development.

If your business is facing new challenges and opportunities – give us a call. We would be honored to provide you with an array of confidential consulting services at no cost – services and advice that can help you and your team make 2014 a year to remember.

On Kitsap!

EXECUTIVE DIRECTOR’S REPORT

John Powers

KEDA Executive Director

Ribbon cutting at Olympic College. Front row: Poulsbo Mayor Becky Erickson; Rep.

Sherry Appleton; WWU Vice Provost, Dr. Earl Gibbons; OC President, Dr. David

Mitchell; Bremerton Mayor, Patty Lent; County Commissioner, Charlotte Garrido

In Thousands

65%

25%

10%

Business Retention, Expansion & Recruitment

Marketing & Community Development

Organization & Resource Development

INCOME SOURCES 2013

Private Sector

Partner Investments $ 113,259.76

In-Kind Investments $ 25,750.00

Total Private Sector $ 139,009.76

Public Sector

State ADO Contract $ 100,657

Kitsap County Contract $ 100,000

Public contracts $ 80,000

Grants - PTAC (Including In-Kind) $ 25,072

Total Public Sector Income $ 305,729

Event Income (Including In-Kind) $ 32,419

Total KEDA Operating Income $ 477,158.19

KADA Restricted Income $ 33,300

Total Income $ 510,458.19

EXPENSES

Advertising, Marketing & Events $ 77,173

Personnel $ 299,504

Operations & Administration $ 96,664

Total KEDA Expenses $ 473,341

KADA Expenses $ 22,012

Total Expenses $ 495,353

Net Ordinary Income $ 15,105

OTHER INCOME & EXPENSES

Interest Income $ 48

Depreciation $ 6,382

Net Income $ 8,772

Statement of Financial Income & Expense

2013 Expenses by Functional Operations

5-Year KEDA Operating Income Comparison

In Thousands

Ye

ar

KEDA 2013 ANNUAL REPORT

www.kitsapeda.org | www.kitsapconnected.org 3 | P a g e

MARKETING & BRANDING

Social Media Presence

KEDA increased our social presence in 2013 with the addition of LinkedIn, Pinterest and Vimeo to the existing Twitter, Facebook and YouTube profiles. Twitter continues in first place regarding followers with Facebook mirroring that growth. In early 2013, KEDA launched KitsapConnected.org featur-ing videos that tell Kitsap's Work+Life story. Videos on the site gained additional exposure on our Facebook page as well as on our Vimeo and YouTube channels. Social media provides a multi-platform approach to tell the Kitsap story and provides KEDA access to an audience not currently available with conventional tools. These statistics

highlight KEDA's 2013 social media activity.

Website—kitsapeda.org

In 2013, after KEDA commenced the process of creating a new website. After extensive research and consultation a Request for Proposals was issued with the contract being awarded to Applied Technical Systems, Inc (ATS) . KEDA is extremely grateful to ATS for providing a significant in-kind contribution, along with the vision, skills and local knowledge required to produce a first class website.

PTAC Capability Statement Worksheet 4,694

Kitsap County Taxes 1,073

Kitsap 2011 Top Employers (Private) 1,029

KEDA Website 2013 RFP 671

Kitsap 2011 Top Employers (Public) 552

Business Start Up Guide 310

Last Mile Backgrounder Report 304

Seaport-e Information 295

Top Employers 2013 (Private) 231

Kitsap's Changing Economy (Feb 2012) 227

2002 Annual Report 188

NK Economy Oct 2012 186

Kitsap Labor Market Report 184

2013 Website Top Docs

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KEDA 2013 ANNUAL REPORT

2013 Facebook & Twitter Likes /Followers

kitsapconnected.org

2013 Winner!

ADO Award of Excellence for

overall creativity in marketing

traditionally and/or online

Work+Life Applied Technical Systems

Innovation

Pacific NW Title

Living

Bainbridge Graduate Institute

Transformation

Port Orchard

Work Live Play

Kitsap Bank

Trust

Puget Sound Energy

Sustainability

Kitsap Credit Union

Family

The Doctors Clinic

Balance

Harrison Medical Center

Community

The Suquamish Tribe

Authenticity

Olympic / WWU

Collaboration

West Sound Workforce

Talent

KitsapConnected by the Numbers:

13—Videos in Portfolio 5,226 —Total Views

4,245 —Website Hits 4,632 — Facebook Views

The KitsapConnected Work+Life multi-media campaign was

launched at KEDA’s Decision Makers Breakfast on January 29,

2013 and has been enthusiastically received by the community.

The video portfolio has grown to include twelve 90-second videos

which have been embraced as effective workforce and business

recruiting tools for the underwriting organizations.

The videos are disseminated across multiple platforms including

news stories, email campaigns, Twitter, FaceBook, LinkedIn,

YouTube and Vimeo. A dedicated web page, kitsapconnected.org

links the viewer to all the videos, the KEDA website and additional

resources. KitsapConnected was privately funded by Kitsap

businesses and organizations.

The videos are a powerful marketing tool from which to attract

capital – both financial and human – to continue building Kitsap’s

role in the region. KEDA encourages their public and private

partners to use KitsapConnected to tell the Kitsap story.

KEDA on Pinterest launched Fall 2013

KitsapConnected Video Portfolio

A 2012 Top Tweet:

Kitsap EDA @ecodevokitsap Jul 26, 2013 KEDA welcomes CA composites #aerospace firm, Omohundro, to #Kitsap! http://ow.ly/2052P4

www.kitsapeda.org | www.kitsapconnected.org 5 | P a g e 4 | P a g e 360-377-94312 | Kitsap Way, Suite 103 | Bremerton, WA 98312

TARGET ACTUAL

New Private Investment $10M $6M

Kitsap Companies Assisted 100 180

Employment at Assisted Companies 6,748^ 6,477

Kitsap Firms Referred to Aerospace 10 4

Jobs Supported/Created (direct assistance) 225 558

Information Research/Referrals 200 239

New Business Generated# $30M $34M

Trade Shows Attended 5 5

Recruitment Leads Generated 25 23

Recruitment Visits to Kitsap County 5 2

KEDA Website Unique Visits 40,064^ 72,000

^ 2012 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

problem solving actions as appropriate. Referrals/Information/Contacts

Companies Directly Assisted

KEDA at Work 2008-2013

KEDA Annual Meeting (March)

Decision Makers I & II (Jan and October)

Pacific Northwest Defense Symposium (September)

12 PTAC workshops throughout the year

Quarterly Full Board Business Briefings

Global Entrepreneurship Week Activities

Business Events & Education

40—E-newsletters—News & Events, Biz Opps

54—Custom Research and Demographics

48—Community Presentations & Reports to Jurisdictions

12—Monthly KPBJ Columns & Display Ads

2 —Kitsap Economic Indicators

—KitsapConnected Marketing Campaign

—KEDA Website

MARKETING & BRANDING

2013 Target & Actual Performance

BUSINESS RETENTION, EXPANSION & RETENTION

Research, Communications & Marketing

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

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

KEDA 2013 ANNUAL REPORT

KADA Key Accomplishments

Kitsap delegation at the Paris Air Show:

Tim Thomson, John Powers, and Josh Brown

Kitsap PTAC Clients Assisted - 2013 Federal Government Contracts

Launched KADA website & developed recruitment package

KADA representatives participated in Paris Air Show as

part of the Washington State Delegation

Participated in 4 additional aerospace conferences &

events

Met with dozens of companies at industry events and

introduced them to Kitsap opportunities

Assisted California aerospace composites company in

relocating to Kitsap County

Conducted 4 site visits to Kitsap manufacturing companies

Feature story in Business Xpansion Journal, a national site selector magazine

John Powers serves on Washington Aerospace Partnership

Board of Directors

Published Annual Report on www.kitsapaerospace.com

KEDA 2013 PTAC Activity: 12 Government Contracting Workshops

52 Businesses receiving one-on-one counselling

6 Supported PTAC related events including:

— Selling to the Navy

— Alliance NW

— Prime Outreach Events

— Seaport-e Outreach

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 2013, Kitsap PTAC

clients were awarded

over $34M in federal

government contracts

and subcontracts

BOARD OF DIRECTORS

Executive Committee:

Julie Tappero, Chair President, West Sound Workforce Steve Politakis, Vice Chair, CEO, Kitsap Bank Ben Anderson, Treasurer President & CEO, Art Anderson Associates John Powers, Secretary Executive Director, KEDA Elliot Gregg, Immediate Past Chair CEO, Kitsap Credit Union Tom Danaher, Public Affairs Officer, Naval Base Kitsap Charlotte Garrido

Commissioner, Kitsap County Patty Lent, Mayor, City of Bremerton Ed Stern, Councilmember, City of Poulsbo

Directors:

Gary Anderson, CFO, Paladin Data Systems Lloyd Berg, Commissioner, Kitsap PUD (through 5/2013)

Anne Blair, Councilmember, City of Bainbridge Island Steve Bonkowski, Mayor, City of Bainbridge Island

Scott Bosch, CEO, Harrison Medical Center Linda Brown, CEO, The Doctors Clinic Jim Carmichael Jim Carmichael & Associates Jeff Cartwright, Councilmember, City of Port Orchard (beginning 11/17/2013) Jim Civilla, Commissioner, Kitsap PUD (beginning 5/28/2013) Jim Colebank, Councilmember, City of Port Orchard (through 7/31/2013) Lary Coppola, Publisher,

Kitsap Peninsula Business Journal 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 Bainbridge Graduate Institute Mark Gulbranson, Deputy Exec. Director, Puget Sound Regional Council Bob Guyt, Principal, Rice Fergus Miller Ed Hallda, VP Strategic Development, Applied Technical Systems

Blaine Highfield, Emeritus

Marcus Hoffman, Commissioner, Silverdale Water District

Charles Horton, Publisher, Kitsap Sun (through 2/28/2013) Tim Matthes, Mayor, City of Port Orchard Mary McClure, Executive Director,

Kitsap Regional Coordinating Council Dr. David Mitchell, President, Olympic College Chris Rieland, CEO & President, Pacific NW Title Jon Rose, President, Olympic Property Group Roy Runyon, Councilmember, City of Bremerton (through 1/31/2013) Chad Solvie, CEO, Martha & Mary Russell Steele, CEO, Port Madison Enterprises Larry Stokes, Commissioner, Port of Bremerton Linda Streissguth, Govt & Public Relations Mgr, Puget Sound Energy Dwight Sutton, Emeritus

Greg Wheeler, Councilmember, City of Bremerton (beginning 2/1/2013)

KEDA Investors

Accountability Plus, Inc. Alpine Evergreen

Applied Technical Systems

Art Anderson Associates

Automated Business Systems

Bainbridge Graduate Institute

Bradley Scott, Inc.

Bremerton Housing Authority

Cascade Natural Gas

CGR Consulting

Chiropractic Health Center

City of Bainbridge Island

City of Bremerton

City of Port Orchard

City of Poulsbo

Columbia Bank

Compensation Consultants

Evoke Networks

Executive TimeSlice

Excell Puget Sound

Exideo Consulting

Fairbank Construction

Hampton Inn & Suites

Harrison Medical Center HWH Properties

Jim Carmichael & Associates

Kingston Stakeholders

Kitsap Bank

Kitsap Commercial Investment Brokers

Kitsap Conference Center at Bremerton Harborside

Kitsap County

Kitsap Credit Union

Kitsap Golf & Country Club

Kitsap Mall

Kitsap Mental Health Services

Kitsap Peninsula Business Journal

Kitsap Public Facilities District

Kitsap PUD #1

Kitsap Sun Kitsap Transit

Land Title Company

Liberty Bay Bank

Long Wave, Inc. Lyons Painting & Design, LLC

Martha and Mary

McClure Consulting, LLC

Mentor Company

National Center for Manufacturing Sciences

North Kitsap School District

Nova Group, Inc.

Olympic College

2013 KEDA Leadership

*Includes January 2013—January 2014 investors.

Olympic Property Group, LLC

Pacific Northwest Title

Paratransit Services

Port of Kingston

Port Madison Enterprises

Port of Bremerton

Professional Options

Propel Insurance

Puget Sound Energy

Puget Sound Regional Council

RePower Kitsap

Rice Fergus Miller

Silverdale Water District

Skookum

Stirrett Johnson

Suquamish Tribe

Sustainable Media Group

The Doctors Clinic

The RockFish Group

Tim Ryan Construction

United Moving & Storage

Vigor Industrial

Washington State Dept. of Commerce

Wells Fargo

West Sound Workforce, Inc.

Western Washington University

Windermere Real Estate