Mayor's 'jobs plan' relies on federal grants, city funds

Seattle Mayor Mike McGinn unveiled a "jobs plan" Tuesday that will use federal grants and reallocated city money to create what he hopes could be as many as 10,000 new jobs.

His broad plan seeks to offer loans to small, minority- and immigrant-owned businesses and create jobs for energy retrofits of homes and businesses, and change the way the city invests in children's programs.

The mayor's plan comes as Seattle's economic troubles continue. McGinn's budget proposal, to be announced next month, is expected to include new taxes, layoffs and cuts to popular programs to help close a $56 million gap.

"We understand the scope of the challenge here, and we're going to do our best," McGinn said in an interview.

The plan didn't include many new announcements. Much of the money involved is federal stimulus funds applied for under the previous administration. But it teams up the mayor with the business community after an uneasy eight months and puts on paper a collection of things the city can do even in a difficult economy.

George Allen, lobbyist for the Greater Seattle Chamber of Commerce, said the plan plays off the mayor's strength — bringing together a diverse group of people and ideas — and will make a true difference in recovering local jobs.

"There's going to be an absolute focus on the economy and on job growth, and it's going to involve all the people who have skin in the game," he said.

Here are the highlights of the mayor's plan:

• Seattle received a $26 million U.S. Department of Energy grant to retrofit homes and businesses, aimed at putting up to 2,000 people to work. The mayor announced two new organizations that will use the money to leverage more money and get started on the retrofits. In addition, the mayor announced a $3.8 million grant for energy efficiencies at Seattle Public Schools.

• The city will put $70 million toward helping new and small businesses through tax credits and loans. Specific programs offer small loans to small businesses and offer training to immigrant and minority entrepreneurs.

• As the next step in the mayor's Youth and Families Initiative, McGinn will use six "action teams" to seek solutions to problems in the city's education system that were brought up in a series of public meetings this spring. The city also will analyze $62 million it puts toward children's programs every year to see if the money can be spent differently.

• The city will commit up to $2 million through an existing program to help low-income residents complete postsecondary training.

• The city website will make it easier for businesses to find information they need through a new "Business Web Portal."

• The mayor supports relaxing restrictions to create business opportunities in the down economy. For example, allowing businesses to charge for parking near light-rail stations and for mobile food vendors to operate in empty lots.

• The mayor plans to combine several pots of money to offer $1 million in grants to neighborhood business districts.

Emily Heffter: 206-464-8246 or eheffter@seattletimes.com