PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6a 
ACTION ITEM 
Date of Meeting    October 11, 2016 
DATE:    October 04, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   Mike McLaughlin, Director, Cruise and Maritime Operations 
Melinda Miller, Director, Portfolio & Asset Management, Economic Development 
SUBJECT:  Pier 66 Facility Exterior and Interior Modernization  Design Authorization 
(CIP Nos. C800820 and C800889) 
Amount of This Request:        $2,500,000   Source of Funds:  General Fund 
Est. Total Project Cost:         $20,000,000 
ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to execute contracts, develop
design alternatives and documents, conduct environmental reviews, and apply for permits for the
modernization of the faade of the Paul Schell Center at Pier 66 and the interior of Bell Harbor 
International Conference Center for a combined estimated cost of $2.5 million.
SYNOPSIS 
This program will focus on keeping the Port's image along the Seattle waterfront strong while
also maintaining the high standard of performance and reputation the Pier 66 facility has
garnered over the last two decades successfully serving multiple maritime and  economic
development business interests. 
On the heels of the Pier 66 cruise passenger terminal improvement project and Seattle waterfront
revitalization efforts, there has been interest expressed from the Port Commission and senior
management to consider improvements to the building faade along with specific requests from
the Port's conference and event center manager to update the interior. Collectively this presents 
an opportunity to modernize Pier 66. In response to these requests, staff has completed some
preliminary conceptual ideas, rough order of magnitude level of investment needed for the
program, and consideration of a phasing schedule that would best align with all the great things
happening on Seattle's waterfront. 
This initial funding request, for $2.5 million from the general fund, is for design development,
architectural and engineering work, environmental and community review, project permitting,
cost estimating and full schedule development. A program of this size and complexity requires a
thorough and systematic approach to ensure stakeholder engagement occurs, improved facility

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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 4, 2016 
Page 2 of 11 
performance and business growth is possible, and community acceptance is achieved before any
construction would begin. Additional funding authorization will be required following design
phase to proceed with facility modernization. The future funding for construction costs for
exterior work would be from the tax levy. The future funding for interior work would be from
the general fund. 
BACKGROUND 
In the early 1990s, a visionary Port Commission implemented a plan to revitalize the central
waterfront. They stepped up when public and private plans for redevelopment had failed. Several
piers, including Pier 66, which was the former location of the Port of Seattle Headquarters, were
in a state of decay and obsolescence. 
The Central Waterfront Development Project succeeded in revitalizing and bringing much
needed development to the waterfront and surrounding areas. Bell Street Pier, the waterside part
of this project, opened in 1995 and included a transit shed (space for future cruise terminal),
international conference center, marina, public plaza and roof deck, working apron, and various
retail and office uses. The project received national and international design awards for its
thoughtful design celebrating the working waterfront and was honored by the City of Seattle with
Bell Street Pier Day in 1995. 
In the late 90s the cruise terminal space was expanded to accommodate the Port's first homeport
cruise line, Norwegian Cruise Line (NCL). The recent 15-year agreement with NCL and the
related improvements underway to expand the cruise facilityscheduled completion in 2017 
will significantly alter and elevate the operation of the facility for cruise. Furthermore, portions
of cruise facilities are utilized for conferences and events year-round when a vessel is not in port,
so it is important to add certain elements and upgrades that make them function effectively. 
The positive impact of this project on Seattle's central waterfront, both economically and
architecturally, cannot be overstated. Pier 66 is a community asset that deserves ongoing
attention and support. The facility has served the Port well over the last 20 years but time has
taken its toll, operating needs have evolved, and the adjacent neighborhood is changing. As the
seawall and viaduct projects are completed and the Alaskan Way Street improvement plans
move forward, it is worthy of consideration to bring the facility up to the standards of the
proposed improvements. 
PIER 66 MODERNIZATION PROJECT OBJECTIVES 
The project's main value lies in enhancing the Port's overall mission and standing, protecting the
significant investment already made by the Port, and meeting the evolving market demands.
Opportunities to protect existing revenues and generate new revenue to reduce the tax levy
obligation required by this project will be explored in the design development phase of the
project. Value can also be realized by enhancing the environmental footprint of the building,
enhancing the entire Alaskan Way waterfront experience for citizens of Seattle and King County
and tourists, and improving the functionality of the facility for both cruise and conference center

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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 4, 2016 
Page 3 of 11 
uses. The preliminary estimate for the interior and exterior improvements identified to date, at
zero percent design, is in the range of $18 million to $21 million. 
Exterior Faade Improvements: This part of the project must to be sensitive to the community
in response to architecture, history, and access and should be appropriate to other waterfront
development. 
The work completed in preparing to bring this proposed program forward for consideration
included development of multiple concept sketches of possible building faade treatments. The
intent of the initial exercise, which involved review and feedback from commissioners and
executive team, was to create a number of ideas to start the creative design process and prepare
order of magnitude cost estimates. In review of several faade design alternatives, ranging from
minimal to the "Cadillac" version, three of the design concepts stood out as favorites. With
estimates between $5 and $20 million, one concept became the preferred approach for a possible
faade refresh, at a cost around $13 million. 
From the feedback received, a list of priority project elements was identified for a faade redesign
to be studied and proposed: 
Environmental enhancements / sustainable design features 
Solar panel power generation / renewable energy 
Energy efficient products 
Water saving or recycling features 
Landscape improvements 
Efficiency enhancements 
Identities 
Signage/Wayfinding 
Functional enhancements 
Canopies 
Entrances 
Public enhancements to promote tourism 
Plaza for public gatherings, etc. 
Future building maintenance costs 
Construction of exterior faade improvements will be funded by the tax levy. 
Interior Improvements: When Bell Harbor International Conference Center (BHICC) opened
in 1995, it was considered state-of-the-art in technology and layout. It was one of the few standalone
conference centers not attached to a hotel and its location on the newly developed central
waterfront created a unique marketing niche. The facility has been well maintained over the
years through a Furniture, Fixture and Equipment (FF&E) fund that was established at the outset
and is based on a fixed percentage of gross revenues that amounts to roughly $250,000 per year.
This allowed Columbia Hospitality, Inc. (CHI), our manager, to make emergency purchases for
things like failed kitchen equipment, replace obsolete technology and provide minor upgrades to
keep the facility fresh and operating properly. The conference and event industry in Seattle has

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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 4, 2016 
Page 4 of 11 
matured to the point that the market for premier, high-quality conference and events has evolved
dramatically - technology and flexibility are paramount. 
The focus of the interior part of the project will be to modernize Bell Harbor International
Conference Center itself and to add elements and upgrades to the newly expanded cruise
terminal spaces to make them function more effectively as event spaces. The preliminary
estimate for interior improvements identified to date is in the range of $5 million - $8 million. 
Modernization is critical to protect the significant investment already made by the Port and to
generate new revenue for the future. To do this our facility must remain competitive and relevant
and respond to the evolving market realities and demands which include: 
demand for high-level technology and audio-visual infrastructure 
more flexible and collaborative event spaces 
expanded networking spaces and work stations adjacent to event spaces 
a fresh, modern look to furnishings and finishes 
The following are elements to be studied and proposed: 
Conference Center (Third Floor) 
Add additional rentable area where possible and create more flexible, adaptable and
customizable space - visually, audibly, and physically. This may include movable glass
walls and flexible spaces to take advantage of the water views and create larger prefunction
areas. 
Refresh the facility so it feels more current but respects its history and established
aesthetic.
Celebrate key iconic elements of the original landmark design concept ("working
waterfront"). 
Future-proof the technology & audio visual infrastructure investments to support
emerging platforms which enable and enhance connectivity, interactivity,  and
productivity (currently that means video, Skype, and hybrid meetings) 
Consider and evaluate energy efficiency opportunities, for example LED lighting, energy
rebates, etc. 
Cruise Terminal Spaces (First and Second Floors): 
Enhance design continuity, accessibility, wayfinding and flow between cruise terminal
spaces and the conference center. 
Add elements (blackout shades, zoned and dimmable LED lighting, ADA ramp, movable
walls) that allow for effective use for conferences and events. 
Construction of Interior Improvements will be funded by the General Fund 


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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 4, 2016 
Page 5 of 11 
Scope of Work 
The conceptual level elements that have been considered thus far are outlined below. These
potential elements would be evaluated and refined during design development. Additional
elements may be incorporated to achieve the modernization objectives:
Exterior Elements:
Install new canopies, incorporate new amenities and enhance public plaza areas 
Create / enlarge openings to enhance natural lighting 
Replace building enclosure and building envelope components 
Incorporate sustainable features such as installation of solar panels and energy efficient
lighting systems 
Install signage and variable messaging signs for way finding 
Install new landscaping and features for public benefit 
Interior Elements:
Install operable walls to maximize utilization of rentable space 
Reconfigure reception and concierge areas 
Upgrade lighting, controls, audio-visual and technology systems 
Install stairs from Level 1 to the Conference Center (Level 3) to create interior vertical
circulation 
Incorporate new finishes and floor coverings 
Incorporate new window treatment 
Create / enlarge openings to enhance natural lighting 
Increase electrical power capacity for events 
Improve accessibility and wayfinding, including installation of variable messaging signs 
Schedule 
The conceptual level project schedule for this project is as follows: 
Design Consultant Procurement, Design    15 months    October 2016  January 2018 
Development and Permitting 
Bidding, award submittals and NTP        4 months     February 2018  May 2018 
Site Construction                     12 months       June 2018  June 2019 

FINANCIAL IMPLICATIONS 
Budget/Authorization Summary             Interior      Exterior   Total Project 
Original Budget                          $7M        $13M        $20M 
Previous Authorizations                       $0          $0          $0 
Current request for authorization                $0.9M        $1.6M        $2.5M 
Total Authorizations, including this request        $0.9M        $1.6M        $2.5M 

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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 4, 2016 
Page 6 of 11 
Remaining budget to be authorized            $6.1M      $11.4M      $17.5M 
Total Estimated Project Cost                  $7M        $13M      $20.0M 


Project Cost Breakdown                     This Request       Total Project 
Construction                                     $0           $15.2M 
Construction Management                       $0.1M           $0.7M 
Design                                     $2.0M            $1.1M 
Project Management                          $0.3M           $0.4M
Permitting                                    $0.1M            $0.1M 
State & Local Taxes (estimated)                        $0            $1.5M 
Total                                         $2.5M            $20.0M 
Budget Status and Source of Funds 
This project was not anticipated in the capital budget and 2016 Plan of Finance because the
economies of scale tied to including these improvements while Pier 66 is already under
construction were not previously identified. The $20M required to fund this project is available
under CIP C800002 MD: Contingency Renewal & Replace & C800216 EDD: Contingency
Renewal & Replace.









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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 4, 2016 
Page 7 of 11 
Financial Analysis and Summary 
CIP Category             Renewal/Enhancement 
Project Type              Renewal & Replacement 
Risk adjusted discount rate     7.0% 
Key risk factors              Interior improvements fail to generate expected
revenue growth. 
Actual costs could exceed current estimates. 
The useful lives of improvements are not fully known
at this time. Individual assets and expected useful
lives will be identified during design phase. 
Project cost for analysis        $20M (see Budget Authorization Summary above for
breakdown) 
Business Unit (BU)          Cruise & Maritime Operations and Portfolio Management 
Effect on business performance  Interior Improvements: 
The interior improvements are expected to increase
revenue by 5% annually over the next 20 years. The 20-
year NPV of marginal net operating income (i.e. estimated
income with improvements minus estimated income
without improvements) is approximately $301K. Without
improvements, CHI expects revenue to decline by 2.25%
annually due to existing suboptimal space configuration,
lack of amenities, and future availability of competitive
event/conference space offerings in Seattle. 
Exterior Improvements: 
The exterior improvements are not expected to generate
monetized benefits at this time. However, exterior
improvements are expected to protect existing revenues, 
better accommodate facility users including tourists and
local community members and potentially attract
additional cruise business. 
The combined projects are expected to add an additional
$1M in depreciation expense per year based on a
preliminary estimated useful life of 20 years for all
improvements. A more detailed breakdown of asset life
will be determined during the design phase of the project. 
NPV               NPV: ($12.7M) based on 20-year cash flow projections 
CPE Impact             N/A 


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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 4, 2016 
Page 8 of 11 
Lifecycle Cost and Savings 
Preliminary lifecycle cost analyses have not been developed for this project but the design team
will identify the lowest total cost design options appropriate for the facility upgrades during
design. Annual Operating and Maintenance costs are expected to decrease. 
STRATEGIES AND OBJECTIVES 
This project supports the Century Agenda strategy of "advancing this region as a leading tourism
destination and business gateway" by providing the much-needed improvements to the Bell
Street facility.  To preserve the established success of the conference and event center,
significant interior improvements of this twenty-year-old facility are now required. This interior
modernization will support the continued long-term growth of the hospitality component of this
facility. Combined with the cruise passenger terminal expansion project already underway, the 
proposed interior enhancements for the conference center will complete the interior refresh and
modernization of the building. The exterior modernization component of this program provides
the opportunity to ensure the faade remains attractive, building entrances and public areas are
inviting and efficient, plus exterior finishes / architectural elements connect well with the interior
and that the entire facility has a cohesive design. Further, this program presents an opportunity to
improve the guest experience and therefore elevate the reputation of this iconic property, amidst
other significant waterfront improvements in the next decade. 
Small Business Opportunities 
The project manager will coordinate with the small business team to maximize small business
participation opportunities. 
Energy Efficiency 
Other objectives include focused attention during design phase towards ongoing  facility 
maintenance requirements and potential of installing solar panels to support improved energy
efficiencies.
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Maintain Status Quo 
Continue to maintain the facility in its current state through the operations expense budgets and
BHICC's FF&E budget, while supporting the NCL cruise passenger terminal interior expansion
project. The Port now has full maintenance responsibility for the entire facility under the current
agreements with NCL and CHI. 
Cost Implications: 
Capital Investment: $0         Revenue Decline Potential: (2%) per year 
Pros: 
(1)  Lowest initial capital cost (none) 

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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 4, 2016 
Page 9 of 11 
Cons: 
(1)  Aging facilities that look dated and do not have amenities such as updated audio
visual and zone lightings systems  and flexible, partitionable spaces  that are
expected with today's conference and event centers 
(2)  Decreased conference and event revenues as adopting lower pricing becomes the
strategy to secure business in an aged conference facility  revenues are expected to
decrease on average by 2.25% per year without additional investment 
(3)  Increased maintenance costs expected as facilities continue to age and wear out 
(4)  Need for modernization simply deferred 
This is not the recommended alternative. 
Alternative 2  Interior modernization only 
Proceed with the design development of the interior modernization only but keep exterior of the
building as is. 
Cost Implications: 
Capital Investment: $7M   Revenue Growth Potential: 5% per year 
20-Year NPV: $301K 
Pros: 
(1)  Provide amenities and experience expected for a conference facility of this size and
caliber 
(2)  Enable revenue growth  estimated to increase by an average of 5% per year for 20
years 
(3)  Provide flexible spaces to better accommodate customer needs 
(4)  Quicker design reviews and permit approvals by the City of Seattle and shorter
construction duration compared with Alternatives 3 and 4. 
(5)  Modest capital investment 
Cons: 
(1)  Requires a modest capital investment 
(2)  Increased maintenance costs expected as the exterior continues to age and wear out 
(3)  Potential of more integrated interior and exterior design and construction
efficiencies not capitalized 
(4)  Need for exterior modernization simply deferred 
This is not the recommended alternative. 



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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 4, 2016 
Page 10 of 11 
Alternative 3  Complete the project in a phased approach with interior modernization first and
then exterior modernization a year later 
Cost Implications: 
Capital Investment: $20.6M     Revenue Growth Potential: 5% per year 
20-Year NPV: ($16.2M) 
Pros: 
(1)  Timing of the interior modernization schedule is protected from any of the potential
challenges the exterior modernization might face (shoreline requirements, design
review board interaction, etc.) 
(2)  Provide improved amenities and experience for both interior and exterior of the
building at a quality level expected for a conference and cruise facility of this size
and caliber 
(3)  Enable revenue growth - estimated to increase by an average of 5% per year for 20
years 
(4)  Provide flexible spaces to better accommodate customer needs 
(5)  Provide opportunities to integrate interior and exterior components that work in
harmony and flow as one facility serving multiple business sectors and public
space. 
Cons: 
(1)  Higher capital investment 
(2)  Delay of exterior faade improvements
(3)  Increase of facility maintenance costs expected as facilities continue to age and
wear out in this extended modernization period 
(4)  Risk of less integrated interior and exterior design, increased risk of construction
inefficiencies  duplicating construction impacts on operations
(5)  Exterior project components would trigger the City of Seattle Design Review
Board's review process which translates to longer design development and overall
project schedule 
(6)  Staggered design and construction in phases would incur additional costs 
This is not the recommended alternative. 
Alternative 4  Full Modernization: The recommended alternative is to proceed to the next
step in determining how best to modernize the entire Pier 66 facility (exterior and interior)
through project scoping, design, cost estimating, community outreach, environmental review,
and permitting strategy as one program which includes multiple elements. Staff will return to the
commission to seek additional authorization for construction funding at the end of the design
development phase.
This alternative takes best advantage of consolidating the interior and exterior components into
one integrated design effort to facilitate cost savings both in design and construction. 

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COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
October 4, 2016 
Page 11 of 11 
Cost Implications:
Capital Investment: $20M       Revenue Growth Potential: 5% per year 
20-Year NPV: ($12.7M) 
Pros: 
(1)  Modernization would occur at a time of significant upgrades along the waterfront
intended to transform the waterfront as a major amenity for the city and tourism. 
(2)  Provide improved amenities and experience for both interior and exterior of the
building at a quality level expected for a conference and cruise facility of this size
and caliber 
(3)  Enable revenue growth from all facility users and attract potential new cruise
business, new cruise line. Conference and Event Center revenues are estimated to
increase by an average of 5% per year for 20 years. 
(4)  Provide flexible spaces to better accommodate customer needs 
(5)  Provide opportunities to integrate interior and exterior components that work in
harmony and flow as one facility serving multiple business sectors and public
space.
Cons: 
(1)  Highest initial capital costs  broader scope of work for design phase 
(2)  Exterior project components would trigger the City of Seattle Design Review
Board's review process which translates to longer period of time for design
development and overall project schedule 
(3)  Combining interior and exterior work as one construction package may take longer
to implement 
This is the recommended alternative. 

ATTACHMENTS TO THIS REQUEST 
Computer slide presentation. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
August 23, 2016  Commission briefing 




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