Item No.     6a_Supp 
Date of Meeting    April 22, 2014 
Terminate Two Existing Leases With Clipper Navigation,
Inc. And Enter Into Two New Leases For Fifteen Years
With One Five Year Option To Extend. 
Clipper Navigation

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Background 
Founded in 1986, Clipper is a locally owned
Passenger transportation between Seattle and
Victoria: 
Fleet of four high speed catamarans 
Served 300,000 passengers in 2013 
Multiple transportation and vacation packages 
Grey and Orca whale watching tours 
104 full time staff year-round 
139 full time staff during peak season 
2013 gross payroll of $5.3 million dollars

Current Lease Background 
Tenant since 1989 
Lease amended 1991  Vine St. Submerged Land 
Ordinance granted by the Seattle Department of
Transportation 
2013 separate five year lease  storage 
Lease expires April 30, 2019 no option to extend 
Rent renegotiation May 1, 2014

Market Conditions and Current
Revenue 
Real estate appraisal firm determined
current market rents of $304,107 
Current Rent is $274,065 
CPI increase every 30 months 
Port pays for Vine Street Permit 
$13,500 in 2014 subject to annual escalations

Proposed Lease and Financial
Terms 
Terminate two existing leases 
Propose two new leases 
Pier 69 admin office, storage, apron, kiosk, docks
and berthing area 
Vine Street Submerged Land (SDOT permit) 
Term 15 years with one five year option 
Rent $294,650 Net Revenue $308,150
Annual CPI increases, renegotiate rent every five
years 
Maintenance and repairs and utilities 
Clipper pays Vine Street Permit Fee

Proposed Lease and Financial
Terms Continued 
Clipper will invest $700,000 toward
improvements to public areas 
Electrical, fire sprinkler system, restrooms,
ceiling grids 
Port funds $200,000 from General Fund 
Net Present Value $1.82 Million 
Port saves $259,000 Vine Street Permit Fee