VIDEO: Mayor Ralph highlights Kent’s economic growth, business success, proposes sales tax in ‘State of the City: Business Edition’ at Kent Chamber luncheon

Kent continues to be one of the fastest-growing midsize cities in the nation, with a thriving business sector and a booming aerospace industry, Mayor Dana Ralph said in her “State of the City: Business Edition” address at a Kent Chamber of Commerce membership luncheon on Thursday, Mar. 6, 2025.

Speaking to local business leaders, Ralph underscored the city’s commitment to economic development, workforce expansion, and infrastructure improvements to ensure long-term success (see video below).

“You are truly the heartbeat of our city,” Ralph told chamber members at the luncheon. “None of what we do would be possible without you.”

Video

Below is an edited version of Ralph’s speech as filmed by Scott Schaefer (running time 53-minutes, 32-seconds):

Kent’s Expanding Economy

Kent’s population has grown by 44% since 2010 and now stands at 140,400 residents, making it the sixth-largest city in Washington. The business sector is also expanding, with 415 new business licenses issued in the past year alone.

“That means people are choosing Kent,” Ralph said. “Our entrepreneurs and business leaders are investing here, and that’s something worth celebrating.”

She noted several major business additions, including Smarturk, Dozone, Make It Rain Fitness, and Top Pot Donuts, as well as new businesses on the horizon such as El Pollo Loco and Logan Brewery.

Kent’s industrial sector remains a powerhouse, housing over 105 million square feet of industrial space and nearly 10,000 companies employing 232,000 workers. The city continues to attract national and global investment due to its strategic location between the region’s ports and its skilled workforce.

Aerospace Industry Growth

The aerospace and space sector remains central to Kent’s economy, contributing $13.6 billion of King County’s $19 billion aerospace GDP.

“Over half of the aerospace jobs in King County are right here in the Kent Valley,” Ralph said. “Our city is playing a major role in the future of space innovation.”

One notable example is Stoke Space, a Kent-based company that recently secured $260 million in Series C investments, bringing its total funding to $480 million.

Investing in Workforce and Small Businesses

Ralph emphasized Kent’s investment in workforce development, particularly in STEM education and career-connected learning programs. The city has launched initiatives to introduce students to aerospace, construction, maritime, and advanced manufacturing careers before they graduate from high school.

“Too many of our young people don’t realize the incredible opportunities in aerospace and manufacturing,” she said. “We are working with educators and industry leaders to change that.”

Kent also continues to support small businesses, which Ralph described as the “largest employers and world changers” in the local economy. The city partners with Business Impact Northwest and other organizations to offer business accelerator programs, financial guidance, and operational support for entrepreneurs.

Housing and Infrastructure Priorities

As Kent’s economy grows, so does the demand for housing and transportation infrastructure. Ralph noted that the City Council unanimously adopted a Comprehensive Plan to guide future growth and ensure the city remains livable and accessible for both residents and businesses.

“It’s the full circle of life,” she said. “You need a place to live, a way to get to work, and a job to go to. We’re making sure Kent continues to offer all of that.”

Wants Local Sales Tax

Ralph is also urging state lawmakers to grant the city the authority to impose a local sales tax, citing an annual revenue loss of $18 million due to the state’s streamlined sales tax policy.

During her address, Ralph emphasized the city’s growing financial strain due to a 2008 legislative change that redirected sales tax revenue from warehousing hubs like Kent to the final destination of goods. The policy shift, intended to align Washington with other states in online commerce taxation, has disproportionately impacted Kent’s finances.

“The reality is, cities like Kent will never recover from this,” Ralph said. “We have been, and continue to be, a primary contributor to our Washington State economy, yet we are left struggling with the consequences of a tax structure that siphons away revenue while we shoulder the costs.”

The city has been receiving limited mitigation payments from the state to help offset the loss, but those payments are set to expire in 2026. Ralph warned that without a permanent fix, Kent’s ability to fund essential services—including public safety—would be significantly impaired.

To address this shortfall, Ralph is advocating for House Bill 1532, which would allow Kent to implement a local sales tax increase of 0.3%—equivalent to three cents on a $10 purchase—to help fund critical services. The bill has cleared committee in the Washington State House but awaits further action.

“This is not about raising taxes just for the sake of it,” Ralph explained. “This is about ensuring Kent has the resources to maintain public safety, improve infrastructure, and continue supporting our residents and businesses.”

Public safety remains a major concern for the city, with Ralph highlighting the need for 30 to 40 additional police officers beyond the 170 currently budgeted positions. She noted that Kent has successfully hired up to budgeted levels, unlike many surrounding cities struggling with recruitment, but still lacks the resources to meet community demand.

Ralph urged businesses and residents to reach out to state legislators to push for the bill’s passage.

“If we don’t get this done, we will continue losing millions of dollars every year,” she said. “This is a long-term fix to a problem that has gone unresolved for too long.”

A Commitment to the Future

Ralph closed her speech with a reaffirmation of her commitment to supporting Kent’s business community and fostering a city where both companies and families can thrive for generations.

Mayor Honors Chamber CEO Zenovia Harris with Proclamation

Towards the end of the event, when Harris was about to introduce a raffle, Mayor Ralph got back up and surprised the CEO with a formal proclamation proclaiming Mar. 6, 2025 as “Zenovia Harris Day” in the city, recognizing her outstanding leadership, advocacy, and dedication to the business community.

Mayor Ralph praised Harris for her transformative impact on Kent’s business landscape, noting her commitment to fostering economic growth, diversity, and community partnerships.

“Zenovia Harris has been a tireless advocate for our business community, bringing innovation, inclusivity, and a forward-thinking approach to economic development in Kent,” Mayor Ralph stated in the proclamation.

Under Harris’s leadership, the Kent Chamber of Commerce has expanded its outreach, strengthened small business support, and built strong public-private collaborations that have positioned the city as a regional economic hub.

The proclamation serves as a testament to Harris’s vision and dedication, highlighting her efforts in strengthening Kent’s economic vitality and ensuring businesses of all sizes have the resources to succeed.

Full “State of the City” will be Thursday, Mar. 20

Ralph’s full “State of the City” address will be held at Kent-Meridian High School on March 20, 2025, where additional updates on citywide initiatives will be shared.

More info on that event is here.