Port of Everett authorizes $15 million treasury note to fund Millwright project

EVERETT, Wash., April 8, 2022 – The Port of Everett Commission authorized the sale of a $15 million treasury note to the Snohomish County Treasurer’s Office on April 5, marking a first-of-its-kind investment by the County to fund local economic development infrastructure at the Port.

Waterfrotn Aerial
Illustration of the Millwright District development project. Source: Port of Everett.

The action allows the Port to leverage its excellent A2 bond rating and reliable debt service capacity to creatively fund construction of its new Millwright Loop Roadway project set to kick off 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 Port’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.

Site plan of Millwright District showing the retail, residential, and commercial building spaces
Aerial rendering of the proposed 325,000 sq. ft. of residential, commercial, and retail space at in the Millwright District. Source: RIOS.

“What a great opportunity this is to expand on our partnership with Snohomish County and further support economic opportunity,” Port Commission President David Simpson said. “Waterfront Place is Snohomish County’s destination waterfront with something for everyone. We are thankful to Treasurer Brian Sullivan for thinking outside of the box with us to find a creative and flexible way to invest in jobs and move this project forward.” 

This pilot investment by the Treasurer’s Office is part of its new Community Investment Program that sets out to invest locally while providing direct economic and community benefit back to the County.

“I am excited to partner with the Port of Everett to build public infrastructure that will bring new jobs, housing and community assets,” Snohomish County Treasurer Brian Sullivan said. “This Port project is the first of many that will be part of a new treasury program that makes direct and safe investments in infrastructure within the County 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 and proven track record of investing its funds in cities and special purpose districts, such as schools, public safety, utilities districts, hospitals, libraries and now, port districts. 

The public’s funds are invested following best practices and procedures, and in accordance with the Snohomish County Investment Policy, as well as all federal, state and local government statutes.

“This strategic investment by Snohomish County will benefit the quality of life for all residents to build the roadway and open pathways for the Port to fund the Millwright Loop Roadway infrastructure project,” said Snohomish County Council Chair Megan Dunn, whose district includes the Port of Everett. “I am excited to see the collaboration and continued development along the Everett waterfront, which brings jobs, recreation opportunities, and community amenities to all who live in Snohomish County.”

Financing is secured by a junior lien on Port revenues with notes to be issued to the Treasurer’s Office by the Port for up to $15 million. This allows the Port to avoid interest on borrowing until the funds are expended. The Port must draw at least $1 million at a time.

The initial interest rate is set at .75% over the 5-year treasury and would be adjusted upon execution of renewal options. The Port may renew up to three times. After 20 years, the notes must be redeemed.

As part of the agreement, the Port will deposit $5 million into the Treasurer’s investment pool. These funds will earn interest for the Port.

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