While speaking to a group of Realtors in Fircrest, Gregoire said the money would come out of an economic development account funded by unclaimed state lottery winnings.

The $700,000 will go to Project Destiny, the group founded in October to help retain Russell as the company seeks expanded or new office space, though there are no firm plans yet on how it will be spent.

Project Destiny plans to meet in March with Russell executives to make the case for Tacoma.

“I’m working with the local folks here to make sure the plan submitted to … Russell puts the best foot forward,” Gregoire said at her lunchtime speech before the Tacoma-Pierce County Association of Realtors.

Russell employs more than 1,100 workers in four downtown Tacoma buildings. The financial services company, with locations around the world, has said it needs room to expand – as much as 1.2 million square feet in the next 25 years.

That could mean adding on to its current A Street site, a new downtown high-rise or a campus environment, similar to the move Weyerhaeuser made in 1971 to Federal Way.

When asked if the governor’s pledge was important to Project Destiny, the group’s leader, Bruce Kendall said, “Any time you have that amount of money to help a transformative project in downtown, it’s important.” Kendall is also CEO of the Economic Development Board of Tacoma-Pierce County.

Russell spokeswoman Jennifer Tice declined to comment on the governor’s announcement.

Gregoire, who’s up for re-election this year, is pulling the $700,000 from the $4 million economic development reserve account, which was established two years ago, said Aaron Toso, the governor’s spokesman.

The fund is to be used to help recruit jobs or keep them in Washington, he said. Russell, however, has said it’s considering locations from Seattle to Lacey and has never indicated it’s looking out of state.

Those involved with Project Destiny will decide how to spend the $700,000, which could include training programs or various upgrades, Toso said.

“It’s up to the local people on how to use it as an incentive,” Toso said.

Kendall said there are no specific plans on how the money would be spent but that rather than go for one big-ticket item, it will likely help pay for a costly project, such as moving underground utilities.

The governor’s pledge could also be used to make an improvement tied to the success of the entire downtown, since a better core for office users is a Project Destiny goal, he said.

“We have the Russell challenge, and we have other challenges,” Kendall said. “If all we do is build a new building for Russell, we will not have succeeded.”

Devona Wells: 253-597-8652

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