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Real Estate Strategic Plan: 
Port Commission Study Session 
July 26th 2016 




1

Overview 
I.   Real Estate Plan Objectives 
II.  Introduction to Opportunity Sites 
III.  Site Analyses 
I.    Terminal 90/91 
II.   P2 
III.   CEM 
IV.  T106 
V.  North SeaTac 
VI.  South 200th Street 
IV. Non Port Property Evaluation 
V. Financial Strategy 
VI. Next Steps 

Image Credit: Heartland                                                                                                 2

Real Estate Strategic Plan Objectives 
Utilize Real Estate To: 
1.  Support Century Agenda goals 
Jobs 
Add 100,000 jobs over 10 years 
Operational excellence & Sustainable Growth 
Grow as an international logistics hub/tourist destination/business
gateway. 
Support small business growth and workforce development 
Support job creation in key port business clusters 
2.  Support Divisional Initiatives 
Maritime, cargo, aviation, cruise 

Portfolio and Property Level Strategies to Achieve Sustainable Growth 
3

Evaluating Port Owned Properties 
Properties selected based on industrial development or redevelopment potential* 
Being Evaluated       Evaluation Complete or Fully Developed     Evaluation by NW Seaport Alliance 
Real Estate Plan                                          Terminal 5 
55-acre site (SeaTac)         Shovel Ready                             Terminal 10 
L-Shape (SeaTac)           Des Moines Creek Phase 2 (Des Moines)            Terminal 18 
13-acre site (SeaTac)         Des Moines Creek Phase 3 (SeaTac)                Terminal 25 
200th Street (SeaTac)         NERA 2 and 3                               Terminal 30 
Terminal 91                                                    Terminal 46 
Terminal 91 Uplands                                            Terminal 103 
Terminal 106                                                 Terminal 104 
CEM Property           Fully Developed                       Terminal 105 
Pier 2                    Manufacturing Industrial Center                   Terminal 107 
Pier 69                  Pier 66                                    Terminal 117 
SAMP 
South Airport (SASA) 
* Does not include a few sites under 2 acres with little
Fisherman's Terminal     industrial development or redevelopment potential
4

Terminal 91 Area Properties 



Image Credit: Heartland 
5

Piers 90/91 
Basic Info 
Zoning: IG1  U/45' 
Heavy industrial zone 
45' height limit 
Constraints 
Road Access 
Clearance and clear spans
under the Magnolia bridge 
Long piers limit
functionality 
Current Uses 
Warehouse/Cold Storage 
Cruise Terminal 
Fishing Vessels 
Industrial Manufacturing 
Image Credit: Heartland 
Using our Real Estate Assets to Achieve the Century Agenda 
6

Piers 90/91  Retain Cruise Option 
Actions 
Assess cruise market growth. 
Analyze road access options, cost
and feasibility. 
Select optimal site (access) for a
parking garage (size). 
Reconfigure the cruise terminal
to two levels, arrival and
departure. 
Consider relocating other non-
cruise uses to Uplands. 
Evaluate need for Pier 90
Image Credit: Heartland 
repair/modernization.

Cruise Operations Have Major Impact on Terminal 91 
7

Piers 90/91-Non Cruise 
Maritime Redevelopment 
Actions 
Evaluate sites and relocate cruise
terminal. 
Re-purpose cruise terminal. 
Attract water dependent
maritime companies. 
Evaluate options to support
fishing fleet recap (larger
vessels). 
Evaluate need for Pier 90
repair/modernization.

Image Credit: Heartland 


8

T91 Uplands 
Basic Info 
Total Acreage:  89 acres 
Usable Acreage: 45 acres 
Constraints 
Road access 
Poor soil conditions 
Infrastructure capacity 
Environmental 
Current Uses 
Warehouse 
Cold Storage 
Food Processing 

Image Credit: Heartland 
The Port's Largest Maritime Development Opportunity 
9

T91 Uplands  Maker District 
50/50 Ground Lease/Build-to-Suit providing 460K-700K SF Flex Industrial 

Actions 
Focus on maritime
industrial users. 
Relocate cruise parking to
Pier 91 or short fill area. 
Work with stakeholders
allow for the opening of
the north gates. 
Option: Workforce
housing on Tsubota Site 

Image Credit: Heartland 
Developing Light Industrial Buildings  What About Housing? 
10

Pier 2 & CEM 



Image Credit: Heartland                                         11

Pier 2 
Basic Info 
Total Acreage:  +/-5.5 acres 
Usable Acreage: +/-4.8 acres 
Zoning: IG-1 & IG-2 
Current Use 
Boat and vehicle storage 
Jack Block Park 


Image Credit: Heartland 



Aerial of Pier 2 and Terminal 5. Photo: 2007 
12 
* Area estimated using Google Earth

Pier 2 
Actions 
Consider dry stack boat
storage. 
Prepare due diligence
materials to support
RFP process. 
Present to the market
in tandem with CEM to
receive market
response from any
potential synergies. 
Elliott Bay Boathouse Proposal, Port of Seattle, 2015 

Developing Properties Adjacent to Terminal 5 
13

CEM Property 
Basic Info                Actions 
Total Acreage: 25 acres     Complete feasibility for
Usable Acreage: ~12 acres    solar farm. 
Zoning: IG-2/U-85'        Prepare due diligence
Current Use: Vacant        materials to support RFP
Constraints             process: 
Presence of the         Long-term
landfill cap.                environmental
Existing truck access       management plan;
to site is limited.            and 
Site configuration is       Cost estimates for
irregular.                  improved access. 


Image Credit: Heartland                                                                                                    14

T106 
Basic Info 
Total Acreage:  31.2 acres 
Usable Acreage: 17.4 acres 
Current Bldg SF: 598,030 
Zoning: IG-1 85' 
Potential Alternatives 
Ground lease redevelopment & 60k SF
incubator 
POS redevelopment as
manufacturing/logistics facility 
New 500k SF industrial building &
60k SF Incubator Redevelopment 
Actions 
Evaluate the costs and benefits of
retaining the building foundation. 
Prepare due diligence materials to
Image Credit: Heartland                                            support RFP process. 
Existing building ready for redevelopment  DOT Lease expires in 2018 
15

Port of Seattle Airport Properties 





Des Moines              SeaTac                 Burien
Development           Development             Development
Opportunities             Opportunities               Opportunities 
New Developments on the Horizon 
16

North SeaTac Properties 




Image Credit: Heartland 
17

55-Acre 
Basic Info 
Total Acreage: 55.7 acres 
Usable Acreage: 31 acres 
Zoning: Aviation Commercial (AVC) 
Current Use 
City Park Ground Lease on a
portion of the site. 
Constraints 
Wetlands and associated
buffers. 
Steep slopes are present on
the site. 

Image Credit: Heartland 

Accommodating SAMP and Supporting New Developments and Jobs 
18

13-Acre 
Basic Info 
Total Acreage: 15.6 acres 
Zoning: Aviation Commercial (AVC) 
Constraints 
Steep slopes are located on
the site. 
Potential Alternatives 
Ground lease for Port supportive
uses. 
Relocation of existing employee
parking. 
Image Credit: Heartland 

Accomodating New Airport uses on Port Real Estate 
19

L-Shaped 
Basic Info 
Total Acreage: 26.2 acres 
Zoning: Aviation Commercial (AVC) 
Current Use 
Raw Land 
Potential Alternatives 
Ground lease for aviation related
uses. 
POS development of 375,000SF Air
Cargo Facility. 

Image Credit: Heartland 

L-Shape or Employee Parking Lot Have Nexus to Air Cargo Operations 
20

SeaTac Properties - Air Cargo Strategy 
Actions 
Prepare due diligence materials
for L-Shape and NEPL site. 
Investigate FAA limitations on
development of employee
parking lot and the 16th Ave South
Site. 
Pursue S 150th Street vacation. 
Prepare cost estimates for
relocating employee parking. 
Coordinate air cargo development
with current AOA operations. 


Image Credit: Heartland 

21

North SeaTac Strategy Summary 
Development Alternative 
375,000 SF new air cargo facility 
Re-locate employee parking lots 
350,000 SF on remaining usable land
of the 55-Acre Site on multiple sites. 
Site Specific Strategies 
55-acre Site 
Ground lease for aviation supportive use. 
Develop new Food Innovation Center on the SW
corner of the 55-acre site. 
13-acre Site 
Relocation site for employee parking. 
Ground lease for aviation supportive use. 
16th Ave South Site (4 acres) 
Relocation site for employee parking. 
L-Shaped Site 
Develop 375,000 SF class-A air cargo facility 
Current Employee Parking Lot (12-acre) 
Develop as future expansion of air cargo facility. 
Image Credit: Heartland                                                                                                22

200th Street 
Basic Info 
Total Acreage:  47.2 acres 
Usable Acreage: 27.7 acres 
Constraints 
Wetlands 
Steep slopes 
Potential access issues 
Potential Alternatives 
Support SAMP impacted airport
facilities. 
Ground lease for Port supportive uses
when SR509 extension is under
construction or complete. 
Actions 
Study existing infrastructure and land
grading feasibility. 
Evaluate alternative access points. 
Image Credit: Heartland 
23

Real Estate Acquisition Update 



Update 
Identified and scored all Industrial Sites in King County 
Reached out to 20+ local govt. partners for nominations of opportunity sites. 
Currently evaluating & prioritizing 12+ properties. 
Preparing financial analysis of long term acquisition opportunities. 
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Real Estate Drives Job Growth 
Office    Manufacturing  Warehouse   Air Cargo     Total 
Square Feet      62,651        654,762        2,020,075       375,000      3,111,491 
/ SF Per Job        180            600            1,500          712          1,000 
= Direct Jobs       348           1,091           1,347          527         3,313* 
x Jobs
2.67           2.28            2.62          1.78         2.38* 
Multiplier 
= Total Jobs        929           2,487           3,529          938          7,883 

Summary 
These are preliminary job estimates using existing Port real estate portfolio. 
Estimates do not include jobs created from non-port property development 
Job estimates may also be low due to warehouse development assumptions. 

Adding new jobs through development of Port Real Estate 
25

Portfolio Strategy Lowers Financing Needs 




Provides strategic approach to both development and financing 
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Final Steps 
Timelines/Milestones      March   April    May    June    July    August    September 
Kickoff 
Port Real Estate Analyses 
Non Port property 
evaluation 
Financial Strategy 
Finalize evaluation &
strategic recommendations 
Summary 
Strategy Completed by end of September 
One more meeting of Real Estate Advisory Committee 
One more Commission briefing to share final plan and recommendations 

Using our Real Estate Assets to Achieve the Century Agenda 
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