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ITEM NO: ___7a_________ DATE OF MEETING: August 14, 2012 Century Agenda Milestones & 2013 Business Plan & Capital Briefing August 14, 2012 Agenda Century Agenda Milestones Aviation Business & Capital Plan Seaport Business & Capital Plan Real Estate Business & Capital Plan 2 Century Agenda Milestones August 14, 2012 Over the next 25 years we will add 100,000 jobs through economic growth led by the Port of Seattle, for a total of 300,000 port-related jobs in the region, while reducing our environmental footprint. Use our Position the Advance this influence as an Be the Puget Sound region as a institution to greenest and Region as a leading tourism promote small most energy premier destination and business efficient port in international business growth and North America logistics hub gateway workforce development We will use the Port's real estate, capital assets and financial capabilities to accomplish our Century Agenda goals. We regard these as tools to thoughtfully steward, rather than areas well suited for specific 25-year goals. 4 Position the Puget Sound region as a premier international logistics hub Grow seaport annual container volume to more than 3.5 million TEUs Structure our relationship with Washington ports to optimize infrastructure investments and financial returns Triple air cargo volume to 750,000 metric tons Triple the value of our outbound cargo to over $50 billion Double the economic value of the fishing and maritime cluster 5 Advance this region as a leading tourism destination and business gateway Make Sea-Tac Airport the west coast "Gateway of Choice" for international travel Double the number of international flights and destinations Meet the region's air transportation needs at Sea-Tac Airport for the next 25 years Double the economic value of cruise traffic to Washington state 6 Use our influence as an institution to promote small business growth and workforce development Increase the proportion of funds spent by the Port with qualified small businesses firms on construction, goods and services to 25% of the eligible dollars spent Increase work force training, job and business opportunities for local communities in trade, travel and logistics 7 Be the greenest and most energy efficient port in North America Meet all increased energy needs through conservation and renewable sources Meet or exceed agency requirements for storm water leaving Port owned or operated facilities Reduce air pollutants and carbon emissions, specifically: -- Reduce air pollutant emissions by 50% from 2005 levels -- Reduce carbon emissions from all Port operations by 50% from 2005 levels and reduce aircraft-related carbon emissions at Sea- Tac by 25% Anchor the Puget Sound urban-industrial land use to prevent sprawl in less developed areas Restore, create, and enhance 40 additional acres of habitat in the Green/Duwamish watershed and Elliott Bay 8 2012 Timeline January Commission adopted draft Century Agenda goals February July Commissioner public outreach Summer Port staff develops business plans including 5-year milestones Fall Finalize Century Agenda goals and Regional/Port initiatives 9 Aviation Division 2013 Business Plan August 14, 2012 Outline State of Economy and Aviation Industry State of Sea-Tac Airport Environmental Scan Strategies/Strategic Goals Links to Century Agenda, Key Initiatives Capital Program Overview 2013 Budget Challenges 11 Airline Industry Industry was profitable in 2011 Heading towards profitable year in 2012 in spite of: Weak economic trends in US Continued economic uncertainty in Europe Relatively high price of oil Focus on profit rather than market share allows industry to break ties to economic cycle Focus on cost, profitable routes, high load factors Growth focused on large hubs with international connections Locally, Alaska Air Group reported record second quarter earnings 12 2012 Airline Activity at Sea-Tac 2012 Enplanements: Domestic Int'l Total June 0.9% 9.8% 1.7% June YTD 1.8% 5.1% 2.2% Growth fueled by increased load factors Available Load Factor Seats 2012 2011 June 0.3% 86.8% 86.0% Q2 0.2% 85.1% 84.0% YTD -0.4% 83.9% 81.9% 13 State of Sea-Tac Airport Enplanement growth first half of 2012 exceeding budget (+2.2%); maintaining 2012 forecast of +1.5% Seeing growth in non-airline revenues, particularly concessions, but parking and rental car revenues lower than budgeted in 2012 Global economic worries, and slow down in U.S. economy cast doubt on strength of recovery Enplanement growth of 2.2% forecasted for 2013 14 Enplaned Passengers Traffic dropped only 19,000 3% in 2008-9 18,000 recession, pointing out resiliency of 17,000 market demand 16,000 2011 was bounce 15,000 back year sooner 14,000 than expected 13,000 Assumptions: 12,000 2012: 1.5% 11,000 2013: 2.2% 10,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2014+: 2.2% 15 Financial Trends at Sea-Tac Following slides show Sea-Tac's performance since 2007 for key performance measures Overall, Sea-Tac has faired well in a deep recession, reflecting the resiliency of the demand for air service in this market, and the ability of the Port to manage through challenging economic circumstances 16 Net Operating Income NOI ($ in millions) 180 NOI is traditional measure 175 170 Good indicator of cash flow, but 165 aeronautical cost-recovery 160 business model can make NOI 155 misleading 150 Increased debt service generates 145 higher NOI 140 2007 2008 2009 2010 2011 2012 Fcst Debt service savings produces lower NOI after Debt Service & Interest Income ($ in millions) 60 NOI 50 NOI after debt service and 40 interest income is better 30 indicator of net cash flow 20 available to invest 10 2012 impacted by non-aero - 2007 2008 2009 2010 2011 2012 Fcst NOI drop 17 Capital Spending, Debt Capital Spending ($ in millions) $350 Capital spending has $300 $250 declined from peak $200 spending years $150 Focus has been on rental $100 car facility and renewal $50 $0 and replacement projects 2007 2008 2009 2010 2011 2012 Fcst Debt/Enplaned Passenger ($ in 000s) 200 Issued debt in 2009 (RCF) 180 and 2010. 160 140 Anticipate bond issue in 120 100 2013 80 60 40 20 0 2007 2008 2009 2010 2011 2012 Fcst 18 Airline Costs - CPE Capital spending is major $17.00 16.49 $16.00 driver of CPE 15.47 14.87 $15.00 14.15 Use of PFCs to offset $14.00 13.41 $13.00 12.64 revenue bond debt service 13.25 11.95 $12.00 mitigated rise in CPE 11.10 11.79 11.89 11.73 11.63 11.75 $11.00 11.10 10.92 $10.00 Red line shows CPE $9.00 forecast in 2005 when $8.00 2005 2006 2007 2008 2009 2010 2011 2012 Fcst airline agreement (SLOA) Cost Per Enplanement (CPE) CPE - 2005 Forecast (SLOA) was signed CPE has been lower than 2005 forecast in every year 19 Environmental Scan: Key Considerations Strong finances: O&D airport; cash flow/reserves; low competition Anticipate continued growth in international travel, especially Asia Cargo declining in 2012, still a long-term opportunity Economic uncertainty remains: slow recovery in US, Europe Non-aeronautical NOI increasing, needed for future investments Major capital requirements: vertical circulation, NorthSTAR, FIS upgrade/replacement Long-term throughput/efficiency/cost effectiveness of terminal investments; focus on technology Long-term planning issues: airport capacity, drives capacity, hotel, south access, cargo development, off airport property development Airline agreement, or no agreement still discussing 20 Business Plan Framework Built around Aviation's seven strategies/strategic goals Enduring, long-term For each strategic goal, five-year objectives Measurable Incorporates Century Agenda milestones For each objective, multiple actions Capital projects Initiatives 21 Strategies/Strategic Goals 1. Operate a world-class international airport by: Ensuring safe and secure operations Meeting needs of our tenants, passengers and the region's economy Managing our assets to minimize the long-term total cost of ownership 2. Become one of the top ten customer service airports in the world by 2015 (measured by the ACI ASQ index) 3. Lead the airport industry in environmental innovation and minimize the airport's environmental impacts 22 Strategies/Strategic Goals 4. Reduce airline costs (CPE) as far as possible without compromising operational and capital needs 5. Maximize non-aeronautical net operating income (NOI) consistent with current contracts, appropriate use of airport properties and market demand 6. Continually invest in a culture of employee development, organizational improvement, and business agility 7. Develop valued community partnerships based on mutual understanding and socially responsible practices 23 Considerations for 2013 Given 2012 O&M growth of 15%, budget target for 2013 is to limit growth of aeronautical O&M to 3% Available budget for new initiatives limited, requiring difficult priority setting Aeronautical rate setting model for 2013 dependent on terms of agreement or resolution if no agreement 24 Objectives and Actions Aviation business plan builds on 2012-2016 business plan. Many objectives remain the same. This presentation will focus on: Initiatives tied to Century Agenda Other Key initiatives tied to Aviation strategies 25 Century Agenda Links Triple air cargo volume to 750,000 metric tons by 2017 Increase air cargo volume to 350,000 by 2017 Expand Cargo VI - $6.3 million Expand Cargo II - $11.8 million Cargo III install infrastructure to facilitate Federal Express warehouse expansion $ TBD Cargo IV complete analysis of redevelopment needs in 2014 Add 2 international main-deck air cargo freighter services Develop air cargo support areas initiate development by end of 2013. 26 Century Agenda Links Make Sea-Tac Airport the west coast "Gateway of Choice" for international travel Complete short-term improvements needed to improve customer service in existing FIS facility Not planning to do mid-term improvements to FIS Increase international arrivals operational efficiency initiate CIP to build new or expand existing FIS facility 27 Century Agenda Links Double the number of international flights and destinations Develop 3 new international routes, and develop additional service in one existing market by 2017 Continue with international incentive program increased operating cost of $179K in 2013 New/expanded FIS facilities see prior slide 28 Century Agenda Links Meet the region's air transportation needs at Sea-Tac Airport for the next 25 years Complete sustainable master plan by 2015 $1.75 million in 2013, $10 million total cost (including environmental review Optimize air terminal utilization through incorporation of design flexibility and technology Modify ticket counters in zones 1, 2 and 3 (3 separate CIPs), including common self-bag drop in zone 1. Modify checkpoints 2-5 (future CIP) Evaluate, initiative development of airport hotel $100K in 2013 for consultant 29 Century Agenda Links Implement conservation practices that will enable airport to meet all future electricity load growth (2010 baseline) through conservation and renewable energy Develop, design and install energy efficient lighting pilot projects Develop long-term energy forecast ($25K) Perform energy audits of Sea-Tac facilities ($60K per year) Develop measurable efficiency metrics for utility and facility 30 Century Agenda Links Meet or exceed agency requirements for storm water leaving Port owned or operated facilities Establish a low-impact development (LID) program incorporating treatment, on-site retention, infiltration and water reuse concepts in a manner consistent with wildlife hazard management and other limitations Survey public entities with established LID programs Establish methodology to assess low impact development opportunities at new projects through a site review process 31 Century Agenda Links Reduce air pollutant and carbon Reduce emissions form from vehicle fleet Qualitatively assess airport fleet to determine optimal vehicle turnover rates Complete electrical ground service equipment (EGSE) infrastructure Monitor use and develop plan to ensure 75% of GSE vehicles use new system Complete pre-conditioned air system Develop plan to install electrical vehicle charging stations 32 Other Strategic Initiatives Maximize non-aeronautical NOI Concessions Complete master plan for concessions program transition 2015 2017: $300K $500K for leasing consultant. Initiate outreach to potential new operators, particularly small/ACDBE businesses Parking Advertising, branding, search engine optimization: $36K increase Implement valet parking service: new CIP, new revenues and operating costs in 2013. 33 Other Strategic Initiatives Employee development/organizational improvement/business agility Continuous Process Improvement (CPI) Continue and increase consulting support ($30K) to train staff and accelerate use of CPI across the Port. Expand internal internship program by 5% (17 to 20) 34 Other Strategic Initiatives Community partnerships Complete Part 150 noise and land use study $175K for implementation plan GRE siting and feasibility study - $10K Replace noise monitors - $2 million CIP Safe, secure operations Reduce pests in Main Terminal area Implement unified pest control contract - $215K 35 Capital Program Significant capital projects not included in 2012-16 capital program include: Aeronautical: All elements of NorthSTAR program (only $46 million included last year): + $230 million Long-term FIS solution: $400+ million 800 MHz radios Next Generation P25 switch $15 million Baggage system recapitalization airport costs unknown, but likely significant Non-aeronautical: Hotel, land development infrastructure: cost TBD Roadways South access: cost TBD 36 2013 Budget Challenges Moderate enplanement growth: 2.2% Airline realignment peak year spending, approximately $17 million O&M costts Significant RMM expenses associated with capital projects (e.g., NorthSTAR) Full year of operating costs for 2012 FTEs for rental car bussing operations Potential for new airline rate setting approach 37 Seaport Division 2013 Business Plan August 14, 2012 Century Agenda - Connections Over the next 25 years, the Seaport will add jobs through economic growth while reducing our environmental footprint. In order to achieve this goal we will accomplish the following: Position Puget Sound region as a premier logistics hub: Grow container volume to 3.5 million TEUs* Structure relationship with WA ports to optimize infrastructure investments and financial returns Triple the value of outbound sea cargo Double the economic value of fishing & maritime clusters Advance the region as a leading tourism destination: Double the economic value of cruise traffic to WA state *TEU: One TEU represents the cargo capacity of a 20-foot intermodal container 39 Century Agenda - Connections Use our influence as an institution to promote small business growth and workforce development. Be the greenest, most energy efficient port in N America: Meet all increased energy needs through conservation and renewable sources Meet or exceed agency requirements for stormwater1 Reduce air pollutants and carbon emissions; specifically: Reduce air pollutant emissions by 50%2 Reduce carbon emissions from all port operations 50%2 Anchor Puget Sound urban-industrial land use Restore, create and enhance 40 additional acres of habitat in the Green/Duwamish River watershed and Elliott Bay 1 - leaving port owned or operated facilities 2 - compared to 2005 levels 40 Terminal 91 Pier 86 Pier 66 Terminal 46 T-18 On-Dock Rail BNSF (SIG - North) Terminal 30 T-5 On-Dock Rail Terminal 18 BNSF (SIG - South) Terminal 25 S Terminal 5 UPRR (ARGO) 41 41 Seaport Strategies The Seaport strategies, business plan, capital and budget plans are aligned with our Proposed Century Agenda goals. Our Commercial Strategy is aligned with Positioning Puget Sound region as a premier logistics hub and Advance the region as a leading tourism destination all our lines of business will support this goal; including: Containers Industrial Properties Cruise Fishing & Other Maritime Grain (Commercial Moorage) 42 Seaport Strategies The Seaport strategies, business plan, capital and budget plans are aligned with our Proposed Century Agenda goals. In addition, our Asset Stewardship and Green Gateway Strategies are aligned with Using our influence as an institution to promote small business growth and workforce development and Be the greenest, most energy efficient port in N America including programs focused on: Small bus./workforce dev. Air quality improvements Freight mobility & land use Energy stewardship Asset stewardship Stormwater mgmt Dredging Habitat restoration 43 Commercial Business Strategy Business Development Financial Sustainability Port Advocacy Growing the Seaport's Business Maintaining Financial Independence Building public & community support Strategic Goal Strategic Goal Strategic Goal Enhance regional economic Improve the Seaport's income Maintain and support development by increasing cargo from operations relationships that cultivate freight & passengers moving overall Port goals for freight through the Port's Terminals movement and economic development in Washington Guiding Principles Guiding Principles Guiding Principles Retain existing customers Prioritize projects that generate Maintain a business-friendly Develop & maintain relationships sustainable rates of return environment with strategic partners Maximize asset utilization to Ensure efficient freight mobility Capitalize on opportunities to increase returns on investments within the Harbor and on-ward secure new business Maintain market lease rates to inland destinations Maintain freight and passenger Maximize efficiency of dollars Reinforce the Seaport's mobility spent and resources used economic and environmental benefit story Overarching Objective Overarching Objective Increase container volume and Maintain the Seaport's financial Overarching Objective cruise activity to meet Century independence Manage/maintain advocacy for Agenda 5 & 25 year objectives Port issues with Stakeholders 44 Container Capacity Growth Plan 2M 3M 3.5M 4M 5M Work Work Package #1 Work Package #2 Work Package #3 Package #4 TERMINALS TERMINALS TERMINALS TERMINALS T-30 Reactivation T-5 increase internal CY T-5 RTG Ops T-5 18 acre expansion T-25 expansion to 16 acres T-46 additional RTG ops RAILYARDS RAILYARDS RAILYARDS Wide span gantry cranes at Main ARGO domestic relocation RAILYARDS SIG North Expansion SIG On-dock IY at T-18 or 16th Ave SIG South expansion T-5 IY second shift conversion to IY. New remote rail yard shared MAINLINE SIG Stacy Yard conversion. with POT OFF-DOCK Sound Transit/BNSF new track ARGO re-designed for high 20 acre third party container agreement Seattle to Tacoma density operations MAINLINE support Crown Stampede Pass Could be constrained? Duwamish Corridor Project MAINLINE TRAFFIC Vancouver bypass OFF-DOCK OFF-DOCK SR-519 Point Defiance bypass EMW grade separation 20 acre 3rd party container Tukwila-Tacoma track. T25/30 off-site yard 40-acre 3rd party support Spokane Street Viaduct support Sumner Connection (Sept. 2012) Ellensburg/Lind cutoff Viaduct Construction TRAFFIC TRAFFIC accommodates freight. 1st Ave S. & E. Marginal Way OFF-DOCK Steady night gates. T-5 surface street Increase use of night gates. 20 acre 3rd party support intersection Continuous day gate hours TRAFFIC SR-509 More night gates Key: Blue = completed Yellow = under way White = planned 45 Asset Stewardship Strategy Condition Assessment Asset Maintenance Capacity Growth Understand Existing Assets Maintain Existing Assets Invest in New Assets When Warranted Strategic Goal Strategic Goal Strategic Goal Assess and document existing Reduce total cost of ownership of Align asset investments to condition of major assets seaport assets support long term market demand Guiding Principles Guiding Principles Guiding Principles Maintain complete asset register Manage assets in a financially Enhance existing assets to Perform condition assessments sustainable manner support long term growth Align asset maintenance with long Invest in new assets to support term strategies commercial strategy Overarching Objective Overarching Objective Overarching Objective Steward assets to retain Maintain a condition assessment Prioritize and execute asset program that sustains or extends maintenance program that existing business and support the life of our assets sustains our assets future growth 46 Green Gateway Strategy Compliance Management Commercial Support Community Commitment Programs we have to do Programs that help support Initiatives that reflect our commitment our business advantage Strategic Goal Strategic Goal Strategic Goal Meet local, state and federal Engage stakeholders to build Collaborate with industry to reduce regulations as effectively as impacts while enhancing our understanding and support for possible competitive advantage environmental initiatives Guiding Principles Guiding Principles Guiding Principles Meet legal obligations Develop environmental initiatives to Communicate that the Port is an Use scientific knowledge and enhance the Port's economic environmental leader and vital programmatic approaches to use competitiveness economic engine. resources most efficiently Maintain collaborative approach to Inform and collaborate with Partner with internal/external environmental problem solving community stakeholders to support economic and stakeholders for effective environmental sustainability environmental management Overarching Objective Overarching Objective Overarching Objective Inform and engage stakeholders Minimize the % of environmental Implement programs that reduce budget spent on compliance to resource use, emissions and the to aid in understanding and support of the Port's focus on maximize resources available for Port's carbon footprint, while increasing our competitive advantage balancing economic and other environmental strategies environmental sustainability 47 Commercial Business Seaport Lines of Business 48 2013 Seaport Outlook: Container Market Outlook: Transpacific volume projected at 3.9% growth U.S. economy and consumer demand uncertain Revenue Assumption: Seattle Harbor volume forecast of 1.66M TEUs* Container lease rate increase Jan 1, 2013 offset by GAAP straight-line rent adjustment Major Work (in alignment with proposed Century Agenda): Support terminal operators to retain & grow business Advance export, import & domestic cargo programs *TEU: One TEU represents the cargo capacity of a 20-foot intermodal container 49 2013 Seaport Outlook: Container Major Work (continued) Joint market FTZ, Green Gateway, air cargo programs Advocate/facilitate terminal access & freight mobility Execute Asset Stewardship Program Reconstruct major docks to extend useful life Evaluate feasibility of intermodal logistics hub Negotiate long term lease of Terminal 46 Initiate program to deepen federal channels Assess storm water infrastructure needs Advance implementation of improved T18 Access 50 Historical Financial Overview Containers 2010 2011 2012 2012 $'s Thousands Actual Actual Forecast Budget Revenues Container Revenues 61,332 64,114 73,724 60,735 Container Total Revenues 61,332 64,114 73,724 60,735 Expenses Seaport Expenses (excl env srvs) 5,006 5,998 6,724 7,724 Environmental Services 1,772 1,237 1,222 1,222 Maintenance Expenses 1,470 1,546 1,546 1,546 P69 Facilities Expenses 326 313 336 336 Other RE Expenses 8 8 20 20 CDD Expenses 1,367 2,774 4,139 2,939 Police Expenses 843 951 1,067 1,093 Corporate Expenses 6,031 6,498 6,959 7,115 Operating Expenses 16,821 19,325 22,013 21,995 Net Operating Income 44,511 44,789 51,711 38,740 Note*: $12,127K of the forecasted increase in 2012 revenue is the result of the refunding of the T18 Special Facility Bonds in December 2011. 51 Historical Financial Overview 2010 2011 2012 2012 $'s Thousands Actual Actual Forecast Budget Income From Operations Terminal 18** 16,097 16,235 24,850 12,661 Other Terminal 5 22,640 23,241 23,102 22,502 Terminal 46 11,840 11,905 12,302 12,302 Facilities Terminal 30 (25/28) 7,646 7,978 7,650 7,650 Terminal 106 West 0 0 0 0 Terminal 3 (32) (27) (36) (36) Container Management (2,434) (3,372) (3,266) (3,266) Total Income From Operations 55,756 55,959 64,602 51,813 Allocations Divisional Allocations (4,782) (3,575) (4,078) (4,078) Corporate & CDD Allocations (6,463) (7,595) (8,812) (8,994) Total Allocations (11,245) (11,170) (12,890) (13,072) Net Operating Income 44,511 44,789 51,711 38,740 Note**: Except for 2012 Forecast, Terminal 18 IFO is net of debt service related to special facility revenue bonds. Income from Operations (IFO) = Revenue Direct Expense Charges 52 2013 Seaport Outlook - Cruise Market Outlook: Continued growth expected in global cruise industry Alaska cruises retain strong market share a favorite destination for first time and repeat cruisers Revenue Assumptions: 186 vessel calls scheduled for 2013 820,000 plus revenue passengers Major Work (in alignment with proposed Century Agenda): Seek long term agreement with additional cruise line Market available berths for new Alaska itineraries and NW Cruising (3-4 day ship + landside experience) Complete T91 Fender Upgrade & P66 Pile Wrapping 53 Historical Financial Overview Cruise 2010 2011 2012 $'s Thousands Actual Actual Budget Revenues Cruise Revenues 11,862 12,287 11,815 Cruise Total Revenues 11,862 12,287 11,815 Expenses Seaport Expenses (excl env srvs) 1,043 836 1,198 Environmental Services 98 220 227 Maintenance Expenses 1,390 925 1,649 P69 Facilities Expenses 59 56 55 Other RE Expenses 3 15 47 CDD Expenses 113 209 448 Police Expenses 936 1,055 1,345 Corporate Expenses 1,234 1,366 1,423 Operating Expenses 4,875 4,682 6,392 Net Operating Income 6,987 7,605 5,422 54 2013 Seaport Outlook - Grain Market Outlook: Export corn/soybean market forecast is mixed due to harvest conditions in US and other countries Revenue Assumptions: Grain volume estimated at 4.5 million metric tons Estimate will be refined when terminal operator forecast is received in late August Major Work (in alignment with proposed Century Agenda): Continue early discussions regarding lease extension 55 Historical Financial Overview Grain 2010 2011 2012 $'s Thousands Actual Actual Budget Revenues Grain Revenues 6,035 5,613 6,089 Grain Total Revenues 6,035 5,613 6,089 Expenses Seaport Expenses (excl env srvs) 306 277 261 Environmental Services 10 3 1 Maintenance Expenses 29 34 40 P69 Facilities Expenses 30 28 31 Other RE Expenses 1 0 0 CDD Expenses 41 89 181 Police Expenses 187 207 228 Corporate Expenses 478 536 615 Operating Expenses 1,081 1,175 1,357 Net Operating Income 4,955 4,439 4,732 56 2013 Outlook - Industrial Properties Market Outlook: Occupancy expected to remain constant Market conditions remains weak Revenue Assumptions: Revenue forecast to increase by 2.6% Major Work (in alignment with proposed Century Agenda): T-108 paving overlay 57 Historical Financial Overview Industrial Properties 2010 2011 2012 $'s Thousands Actual Actual Budget Revenues Industrial Properties Revenues 13,219 13,382 14,486 Industrial Total Revenues 13,219 13,382 14,486 Properties Expenses Seaport Expenses (excl env srvs) 3,184 3,220 3,395 Environmental Services 692 562 655 Maintenance Expenses 943 997 1,342 P69 Facilities Expenses 87 84 83 Other RE Expenses 126 137 191 CDD Expenses 210 372 605 Police Expenses 823 910 1,000 Corporate Expenses 1,592 1,800 1,912 Operating Expenses 7,658 8,081 9,183 Net Operating Income 5,561 5,301 5,303 58 Historical Financial Overview 2010 2011 2012 $'s Thousands Actual Actual Budget Income From Operations Terminal 115 4,150 4,325 4,345 Terminal 91 Seaport Industrial 2,352 2,213 2,253 Terminal 108 755 571 592 by Terminal 18 Bulk Terminals 930 964 902 Terminal 106 Container Related 590 544 614 Industrial Terminal 104 (21) 76 209 Terminal 103 557 547 549 Facility Pier 16/17 474 472 499 Terminal 107 204 210 203 Harbor Island Central 187 214 220 Terminal 106 Bulk Terminals 83 85 86 Terminal 46 Industrial 125 114 7 Terminal 25 South (47) (33) (171) Terminal 117 (25) (26) 0 Terminal 10 (57) (91) (109) Terminal 5 Container Support 4 (85) (150) Terminal 106 Bldgs. 1 & 2 (208) (167) 810 Other (former T30 property) 0 0 0 Industrial Properties Admin (637) (877) (1,194) Total Income From Operations 9,415 9,057 9,664 Allocations Divisional Allocations (1,492) (989) (1,289) Corporate & CDD Allocations (2,362) (2,767) (3,072) Total Allocations (3,854) (3,756) (4,361) Net Operating Income 5,561 5,301 5,303 Income from Operations (IFO) = Revenue Direct Expense Charges 59 2013 Outlook: Maritime Operations Market Outlook: Commercial Fishing in Alaska expected to remain strong Factory trawler moorage demand expected to remain strong Historical demand is expected for other commercial vessels Revenue Assumptions: Facility use fees at market rates & vessel calls remain flat Major Work (in alignment with proposed Century Agenda): Increase commercial moorage business harbor wide Evaluate models for increasing third party maritime activity 60 Historical Financial Overview Maritime Operations 2010 2011 2012 $'s Thousands Actual Actual Budget Revenues Docks Revenues 3,611 3,513 3,856 Maritime Total Revenues 3,611 3,513 3,856 Operations Expenses Seaport Expenses (excl env srvs) 2,006 2,214 2,239 Environmental Services 61 105 184 Maintenance Expenses 1,144 1,092 1,233 P69 Facilities Expenses 25 24 26 Other RE Expenses 8 20 42 CDD Expenses 265 93 200 Police Expenses 412 455 501 Corporate Expenses 527 590 675 Operating Expenses 4,448 4,595 5,100 Net Operating Income (837) (1,082) (1,244) 61 Historical Financial Overview 2010 2011 2012 $'s Thousands Actual Actual Budget Income From Operations Terminal 91 Fishing Related 2,562 2,201 2,207 by Terminal 91 Vessel Operations 436 477 377 Maritime Terminal 91 Operations Overhead (2,425) (2,732) (2,766) Terminal 25 Vessel Operations 295 312 313 Industrial Pier 2 Docks 51 50 52 Facility Pier 34 Docks 0 0 0 Terminal 46 Maritime Docks (19) 21 241 Pier 69 Vessel Operations (1) (31) (44) Pier 28 Docks (29) 105 101 Terminal 18 North-Mooring Dolphins 0 88 173 Total Income From Operations 869 490 653 Allocations Divisional Allocations (778) (504) (667) Corporate & CDD Allocations (928) (1,067) (1,230) Total Allocations (1,706) (1,572) (1,897) Net Operating Income (837) (1,082) (1,244) Income from Operations (IFO) = Revenue Direct Expense Charges 62 2013 Outlook: Maritime Security & Emergency Preparedness Emergency Preparedness (EP): Execute FEMA IEMC* action plan items for Seaport Develop joint EP Program with Real Estate/Corporate Develop and conduct EP training and exercising Review and strengthen departmental COOP# plans Seaport Security: Administration of grants for 3rd parties concludes in 2012 Maintain compliance with Federal security regulations Conduct security awareness training and exercising Perform security risk assessments and improvements Seek & pilot emerging customs screening technology *Integrated Emergency Management Course #Continuity of Operations Plan 63 Historical Financial Overview Security 2010 2011 2012 $'s Thousands Actual Actual Budget Revenues Security Grants 1,791 394 1,598 Maritime Total Revenues 1,791 394 1,598 Security Expenses Seaport Expenses (excl env srvs) 759 353 417 Environmental Services 0 0 0 Maintenance Expenses 6 14 8 P69 Facilities Expenses 0 0 0 Other RE Expenses 0 0 0 CDD Expenses 2 3 16 Police Expenses 0 0 0 Corporate Expenses 517 386 593 Security Grant Expenses 1,983 481 1,476 Operating Expenses 3,267 1,238 2,510 Net Operating Income (1,477) (843) (912) 64 Projects & Capital Budget Seaport Asset Stewardship 65 Terminal 5 Project CIP STATUS 2013 2013-2017 2018-2022 TOTAL Net Operating Income Snapshot 2012 $'s Thousands Forecast T5 Crane Cable Reels Commission Authorized$ 40 $ 40 -$$ 40 Terminal 5 - 158 Acres Revenue 24,504 T5 Street Vacation CompletionCommission Authorized$ 80 1,650$-$ 1,650$ Expenses T5 Dock Rehabilitation Pending Future Authorization-$ 4,500$ 1,300$ 5,800$ Direct Expenses 1,401 T5 New Cranes (4) Pending Future Authorization-$ 26,000$27,100$ 53,100$ Container Management* 1,012 T5 Dredge Phase 2 EXPENSE 1,250$4,080$-$ Divisional Allocations*4,080$ 1,263 Corporate Allocations* 2,730 T5 Maintenance Dredging EXPENSE -$ $ 500 7,000$ 7,500$ Total Expenses 6,407 TOTAL 1,370$ 35,400$36,770$ 72,170$ Net Operating Income 18,097 66 Note - Excludes Prospective Items Note*- Pro-rata share based on total acres Terminal 18 Project CIP STATUS 2013 2013-2017 2018-2022 TOTAL Net Operating Income Snapshot 2012 $'s Thousands Forecast T18 Street Vacation Completion Commission Authorized $ 80 1,290$-$ Terminal 18 - 194 Acres1,290$ T18 S Gate Access Improvements Pending Future Authorization500$ 2,000$-$ Revenue2,000$ 27,546 T18 Dock Rehabilitation Pending Future Authorization -$ 18,600$-$ Expenses18,600$ Direct Expenses 2,697 T18 Remove IHI Cranes EXPENSE $ 128 1,128$-$ 1,128$ Container Management* 1,242 T18 Maintenance Dredging EXPENSE -$$ 200 2,800$ 3,000$ Divisional Allocations* 1,551 T18 Paint MHI Cranes EXPENSE -$ -$ 2,200$ 2,200$ Corporate Allocations* 3,352 Total Expenses 8,842 TOTAL $ 708 23,218$5,000$ 28,218$ Net Operating Income 18,704 67 Note - Excludes Prospective Items Note*- Pro-rata share based on total acres Terminal 30 Project CIP STATUS 2013 2013-2017 2018-2022 TOTAL Net Operating Income Snapshot 2012 $'s Thousands Forecast T30 Alaskan Way St Vacation Commission Authorized $ 20 5,720$-$ Terminal 30 - 70 Acres5,720$ Revenue 8,313 T25 Dock Rehabilitation Pending Future Authorization -$ -$ 5,500$ 5,500$ Expenses T30 Dock Rehabilitation Pending Future Authorization -$ -$ 11,000$ 11,000$ Direct Expenses 663 South T25 Container Yd Phase 2 Pending Future Authorization -$ 14,100$-$ Container Management*14,100$ 448 Divisional Allocations* 560 T30 Maintenance Dredging EXPENSE -$ 2,900$2,300$ 5,200$ Corporate Allocations* 1,210 Total Expenses 2,881 TOTAL $ 20 22,720$ 18,800$ 41,520$ Net Operating Income 5,432 68 Note - Excludes Prospective Items Note*- Pro-rata share based on total acres Terminal 46 Net Operating Income Snapshot 2012 $'s Thousands Forecast Project CIP STATUS 2013 2013-2017 2018-2022 TOTAL Terminal 46 - 88 Acres Revenue 13,069 T46 Dock Rehabilitation Pending 2013 Authorization2,400$ 19,800$-$ 19,800$ Expenses T46 Viaduct Driven Capital Work Pending 2013 Authorization 100$ $ 300 -$$ 300 Direct Expenses 767 T46 Development Pending Future Authorization -$ 37,500$2,500$ Container Management*40,000$ 564 T46 Demo Crane 54 EXPENSE -$$ 450 -$$ 450 Divisional Allocations* 704 Corporate Allocations* 1,521 T46 Paint ZPMC Cranes (4) EXPENSE -$ -$ 2,200$ 2,200$ Total Expenses 3,555 TOTAL 2,500$ 4,700$58,050$ Net Operating Income62,750$ 9,514 69 Note - Excludes Prospective Items Note*- Pro-rata share based on total acres Pier 66 Net Operating Income Snapshot 2012 $'s Thousands Forecast Project CIP STATUS 2013 2013-2017 2018-2022 TOTAL Pier 66 Cruise Operations Revenue 3,181 P66 Apron Pile Wrap Commission Authorized 2,000$2,783$-$ Expenses2,783$ Direct Expenses 800 Pier 66 Cameras Upgrade Analog Pending 2013 Authorization $ 370 $ 370 -$$ 370 Cruise Services Management* 271 P66 Shore Power Pending Future Authorization 1,000$13,700$ -$ 13,700$ Divisional Allocations* 251 Corporate Allocations* 784 Total Expenses 2,106 TOTAL 3,370$ 16,853$-$ 16,853$ Net Operating Income 70 1,075 Note - Excludes Prospective Items Note*- Pro-rata share based on total revenue Terminal 115 Net Operating Income Snapshot 2012 $'s Thousands Forecast Terminal 115 Revenue 4,962 Expenses Direct Expenses 616 Project CIP STATUS 2013 2013-2017 2018-2022 TOTAL Industrial Properties Mgmt* 409 Divisional Allocations* 441 T115 Railroad Spur Upgrade Pending Future Authorization 150$ 1,100$ -$ 1,100$ Corporate Allocations* 1,052 Total Expenses 2,519 TOTAL $ 150 1,100$-$ 1,100$ Net Operating Income 2,443 71 Note - Excludes Prospective Items Note*- Pro-rata share based on total revenue 71 Terminal 104 Terminal 103 Terminal 106 Terminal 108 Net Operating Income Forecast 2012 Forecast $'s Thousands T108 T106 T104 T103 Total Terminals 108,106,104,103 Revenue 735 1,897 293 594 3,519 Project CIP STATUS 2013 2013-2017 2018-2022 TOTAL Expenses Direct Expenses 143 224 84 45 496 T104 Site Improvements Pending Future Authorization$ 400 2,080$-$ 2,080$ Industrial Properties Mgmt* 61 143 24 49 276 T106 & T108 Drainage and Paving Pending Future Authorization$ 300 7,200$ -$ 7,200$ Divisional Allocations* 65 154 26 53 299 Corporate Allocations* 156 368 62 126 712 TOTAL $ 700 9,280$-$ Total Expenses9,280$ 425 888 197 273 1,783 Net Operating Income 310 1,009 97 321 72 1,736 Note - Excludes Prospective Items Note*- Pro-rata share based on total revenue Terminal 91 73 Seaport Projects - Terminal 91 Project CIP STATUS 2013 2013-2017 2018-2022 TOTAL Pier 90 C175 Roof Replacement Commission Authorized $ 105 2,396$-$ 2,396$ T30/91 Projects Commission Authorized $ 344 $ 344 -$$ 344 P91 Fender System Upgrade Commission Authorized $ 850 $ 850 -$$ 850 Pier 90 C173 Roof Replacement Pending Future Authorization $ 200 1,500$-$ 1,500$ T91 Second Gangways Per Berth Pending Future Authorization 1,000$9,500$-$ 9,500$ Widen T91 West Berth Access Pending Future Authorization $ 200 2,400$-$ 2,400$ T91 Railroad Spur Upgrade Pending Future Authorization $ 150 1,050$-$ 1,050$ T91 Substation Upgrades Pending Future Authorization $ 150 2,500$-$ 2,500$ T91 Industrial Warehouse(in shortfill)Pending Future Authorization $ 100 17,400$-$ 17,400$ T91 Berth 6&8 Redev Pending Future Authorization -$ 24,500$-$ 24,500$ Dredge Pier 90 East Berths Pending Future Authorization -$ 6,600$-$ 6,600$ T91 Maintenance Dredging EXPENSE -$ 2,300$ -$ 2,300$ TOTAL 3,099$ 71,340$-$ 71,340$ Note - Excludes Prospective Items 74 Seaport Projects - Other Project CIP STATUS 2013 2013-2017 2018-2022 TOTAL Argo Yard Roadway - Element 1 Commission Authorized 1,910$1,958$-$ 1,958$ Cruise Capital Allow-CTA Lease Commission Authorized $ 200 1,000$400$ 1,400$ Seaport Security Projects Commission Authorized $ 813 $ 813 -$$ 813 Seaport Small Projects Small Projects $ 700 2,900$ 2,500$ 5,400$ Seaport Green Port Initiative Pending 2013 Authorization $ 815 $ 815 -$$ 815 Other Small Projects $ 525 3,033$ 3,204$ 6,237$ Container Support Yard-3.5M T#1 Pending Future Authorization -$ 30,000$-$ 30,000$ East West Waterways Deepening Pending Future Authorization -$ 1,850$75,850$ 74,000$ Container Support Yard-3.5M T#2 Pending Future Authorization -$ -$ 35,000$35,000$ Pier 34 Dolphins & Cat for Barges Pending Future Authorization $ 500 2,500$-$ 2,500$ Contingency Renew & Replace Pending Future Authorization -$ 30,000$150,000$ 120,000$ Asset Condition Assessment EXPENSE $ 450 1,260$2,930$4,190$ TOTAL 5,913$ 76,129$314,163$ 238,034$ Note - Excludes Prospective Items 75 Seaport Project Plan 2013-2022 Draft as of 08/03/2012 $'s in 000's 2013 2013-2017 2018-2022 Total Commission Authorized/Underway 6,442 18,844 400 19,244 Pending 2013 Authorization 3,685 21,285 0 21,285 Pending Future Authorization 4,650 256,580 276400 532980 Small Projects 1,225 5,933 5,704 11,637 Total 16,002 302,642 282,504 585,146 Major Expense Projects 1,828 12,818 19,430 32,248 Total Projects 17,830 315,460 301,934 617,394 Other Prospective Capital Projects 0 632,950 231,500 864,450 76 2013 Seaport Financial Outlook Operating Revenue: Projected to increase $10.5M compared to 2012 Budget: Increase due to refunding of T18 Special Facility Bonds $12.1M Increase in crane, industrial property, dock revenue $1.2M Decrease in security grant revenue ($1.6M) Decrease in grain revenue ($1.0M) Estimates will be refined in the 2013 budget process 77 2013 Seaport Financial Outlook Expense Trends and Risks: Comprehensive asset condition assessments Maintenance dredging Repair costs Crane removal Storm water infrastructure NW Clean Air Strategy Environmental Remediation Liability Expense Tribal fishing coordination 78 2012 Seaport Financial Outlook 2010 2011 2012 2012 2012 Bud Var $'s Thousands Actual Actual Forecast Budget $ % Revenues Operating Revenues 96,060 98,910 110,361 96,980 13,381 13.8% Security Grants 1,791 394 2,603 1,598 1,005 62.9% Total Revenues 97,850 99,304 112,964 98,578 14,386 12.7% Expenses Seaport Expenses (excl env srvs) 12,303 12,899 14,476 15,236 760 5.0% Environmental Services 2,632 2,127 2,289 2,289 0 0.0% Maintenance Expenses 4,981 4,608 5,817 5,817 0 0.0% P69 Facilities Expenses 527 506 531 531 0 0.0% Other RE Expenses 147 180 300 300 0 0.0% CDD Expenses 1,998 3,539 5,588 4,388 (1,200) -27.3% Police Expenses 3,201 3,578 4,141 4,167 26 0.6% Corporate Expenses 10,378 11,177 12,176 12,332 156 1.3% Security Grant Expenses 1,983 481 2,688 1,476 (1,212) -82.1% Envir Remed Liability 1,439 (633) 0 0 0 NA Operating Expenses 39,590 38,463 48,006 46,536 (1,470) -3.8% Net Operating Income 58,261 60,842 64,958 52,042 12,916 24.8% Note*: $12,127K of the forecasted revenue variance is the result of the refunding of the T18 Special Facility Bonds in December 2011. 79 2013 Seaport Business Plan Risks: Competitive threats U.S. economic recovery stalls or contracts Loss of business due to traffic congestion Loss of business due to lower cost competitive ports Escalating liability, project and overhead costs Escalating land use pressures Legislation/regulation/inequities that impede port competitiveness 80 2013 Seaport Business Plan Key Highlights: Overall business outlook is uncertain for Seattle mirroring uncertain U.S. economy and global outlook Business Plan aligns with Century Agenda & CEO goals Advance "Commercial Strategy" to retain & grow business Build upon "Green Gateway" strategy, brand & successes "Asset Stewardship" & dredging are critical area of focus Continue business-friendly & collaborative approach Comply with Port & government requirements 81 Real Estate Division 2013 Business Plan August 14, 2012 Division Objectives Provide for NOI consistent with 2012 levels Continue execution of deferred maintenance obligations Maintain an aggressively defensive posture while waterfront infrastructure projects underway Position assets for long term growth Provide for amended real estate policies as necessary with regard to: Recommendations from Century Agenda planning 83 Real Estate 2013 Budget Preview Operating Revenues expected to decrease by approximately 1% relative to 2012 Budget Positive trailing indicators: Market conditions continue to tighten, albeit with aggressive owner contributions Capital markets are thawing Development projects are underway (mostly residential) Exposures/risks: Eastside Rail Corridor sale to King County; GNP bankruptcy Deferred maintenance costs Tenant improvement allowances Competition for capital Pending debt re-payment challenge looms Major infrastructure projects along the waterfront 84 Real Estate Division Financial Overview 2010 2011 2012 2012 2012 Bud Var $'s Thousands Actual Actual Forecast Budget $ % Revenues Revenue 21,500 22,071 22,068 22,389 (321) -1.5% BHICC & WTC Revenue 8,320 9,498 9,037 10,012 (975) -10.3% Total Revenues 29,820 31,569 31,105 32,401 (1,296) -4.1% Expenses Real Estate Exp (excl Maint,P69,Hosp) 9,305 9,759 9,920 9,920 0 0.0% Real Estate BHICC & WTC 6,964 7,600 7,109 7,870 761 10.0% Eastside Rail Corridor 504 1,585 203 203 0 0.0% Maintenance Expenses 6,652 7,192 9,562 9,687 125 1.7% P69 Facilities 226 150 198 198 0 0.0% Environmental Services & Planning 924 871 987 987 0 0.0% Seaport Expenses (excl env srvs) 253 359 421 421 0 0.0% CDD Expenses 803 917 1,266 1,266 0 0.0% Police Expenses 1,198 1,301 1,433 1,442 9 0.7% Corporate Expenses 4,671 5,018 5,177 5,229 52 1.0% Envir Remediation Liability (2) 7 0 0 0 0.0% Operating Expenses 31,499 34,758 36,277 37,224 947 2.7% Net Operating Income (1,678) (3,189) (5,172) (4,823) (349) -10.9% 85 Financial Overview Harbor Services Fishing & Commercial Fishing and Commercial 2010 2011 2012 $'s Thousands Actual Actual Budget Revenues Operating Revenues 2,753 2,549 2,667 Total Revenues 2,753 2,549 2,667 Expenses Real Estate Exp (excl Maint & P69) 1,850 1,757 1,847 Maintenance Expenses 1,430 1,435 1,828 P69 Facilities 23 23 33 Environmental Services & Planning 324 277 309 Seaport Expenses (excl env srvs) 45 67 70 CDD Expenses 335 198 225 Police Expenses 430 465 519 Corporate Expenses 857 866 964 Operating Expenses 5,296 5,090 5,795 Net Operating Income (2,543) (2,541) (3,129) 86 Financial Overview Harbor Services Recreational Boating Recreational Boating 2010 2011 2012 $'s Thousands Actual Actual Budget Revenues Operating Revenues 8,794 8,960 8,974 Total Revenues 8,794 8,960 8,974 Expenses Real Estate Exp (excl Maint & P69) 2,633 2,684 2,803 Maintenance Expenses 1,647 1,543 2,145 P69 Facilities 61 61 81 Environmental Services & Planning 309 280 274 Seaport Expenses (excl env srvs) 45 67 70 CDD Expenses 169 349 412 Police Expenses 337 372 415 Corporate Expenses 1,715 1,813 1,881 Operating Expenses 6,916 7,170 8,081 Net Operating Income 1,878 1,790 893 87 Financial Overview Portfolio Management Portfolio Management 2010 2011 2012 $'s Thousands Actual Actual Budget Revenues Revenue 8,980 9,507 9,911 BHICC & WTC Revenue 8,320 9,498 10,012 Total Revenues 17,300 19,005 19,923 Expenses Real Estate Exp (excl Maint & P69) 4,036 4,465 4,348 Real Estate BHICC & WTC 6,964 7,600 7,870 Maintenance Expenses 3,339 3,809 5,220 P69 Facilities 58 58 72 Environmental Services & Planning 119 168 236 Seaport Expenses (excl env srvs) 144 186 201 CDD Expenses 250 312 556 Police Expenses 431 463 508 Corporate Expenses 1,747 1,872 1,978 Operating Expenses 17,087 18,934 20,989 Net Operating Income 212 71 (1,066) 88 Financial Overview Eastside Rail Corridor Eastside Rail Corridor 2010 2011 2012 $'s Thousands Actual Actual Budget Revenues Operating Revenues 114 85 22 Total Revenues 114 85 22 Expenses Real Estate Exp (excl Maint & P69) 157 167 186 Eastside Rail Corridor 504 1,585 203 Maintenance Expenses 6 46 64 P69 Facilities 0 0 0 Environmental Services & Planning 0 30 60 Seaport Expenses (excl env srvs) 0 0 0 CDD Expenses 11 12 8 Police Expenses 0 0 0 Corporate Expenses 74 196 101 Operating Expenses 751 2,037 621 Net Operating Income (637) (1,952) (599) 89 Financial Overview RE Development & Planning RE Development & Planning 2010 2011 2012 $'s Thousands Actual Actual Budget Revenues Operating Revenues 756 918 812 Total Revenues 756 918 812 Expenses Real Estate Exp (excl Maint & P69) 628 686 737 Maintenance Expenses 204 308 427 P69 Facilities 7 6 11 Environmental Services & Planning 173 115 108 Seaport Expenses (excl env srvs) 19 38 80 CDD Expenses 37 46 65 Police Expenses 0 (0) 0 Corporate Expenses 279 269 305 Operating Expenses 1,347 1,469 1,733 Net Operating Income (591) (551) (922) 90 Draft 2013 Capital Plan Total Real Estate Division $ 000's TOTAL REAL ESTATE DIVISION 2013 2013-17 Total Commission Authorized/Underway 9,688 9,861 Pending 2013 Authorization 2,898 10,233 Pending Future Authorization 2,826 39,306 Small Projects 2,471 10,221 TOTAL 17,883 69,621 91 Draft 2013 Capital Plan By Location Fishermen's Terminal $ 000's FISHERMEN'S TERMINAL 2013 2013-17 Total FT Waterside Projects Capital Projects Status Description Small Projects FT Waterside Small Capital Projects 15 175 Pending Future Authorization FT NW Dock West Improvements 0 800 Pending Future Authorization FT Net Shed 9 Roof Replacement 606 606 Pending Future Authorization FT Dock 3 Fixed Pier Improvement 0 3,000 Pending Future Authorization FT Dock 4 Fixed Pier Improvement 0 3,500 Total FT Waterside 621 8,081 FT Upland Projects Capital Projects Status Description Commisson Authorized FT C15 HVAC Improvements 3,388 3,561 Small Projects FT Uplands Small Capital Projects 125 550 Pending Future Authorization FT Paving/Storm Upgrades 150 1,650 Pending Future Authorization FT C14 (Downie) Bldg Roof & HVAC 0 950 Pending Future Authorization FT C-2 (Norby) Bldg Roof & HVAC 150 1,150 Pending Future Authorization FT C-15 Bldg East Sewer Line 100 850 Pending Future Authorization FT C-15 Bldg Subsidence Imp 250 2,750 Pending Future Authorization FT 25 Year Plan Improvements 500 13,000 Total FT Landside 4,663 24,461 TOTAL FISHERMEN'S TERMINAL 5,284 32,542 92 Draft 2013 Capital Plan By Location Shilshole Bay Marina $ 000's SHILSHOLE BAY MARINA 2013 2013-17 Total Shilshole Bay Marina Recreational Boating Status Description Pending 2013 Authorization SBM Central Seawall Replacement 715 915 Pending 2013 Authorization SBM Restroom Replacement 100 4,800 Pending 2013 Authorization SBM Paving 0 1,000 Small Projects Small Projects 375 825 Pending Future Authorization SBM Fuel Float & Bldg Improvements 0 1,100 Total SBM Recreational Boating 1,190 8,640 Shilshole Bay Marina Commercial Prop 0 0 Total SBM Commercial Prop 0 0 TOTAL SHILSHOLE BAY MARINA 1,190 8,640 93 Draft 2013 Capital Plan By Location Maritime Industrial Ctr & Harbor Island Marina $ 000's MARITIME INDUSTRIAL CENTER 2013 2013-17 Total Maritime Industrial Center Status Description Small Projects MIC Small Capital Projects 175 225 Pending Future Authorization MIC Building A1 Roof Replacement 570 570 TOTAL MARITIME INDUSTRIAL CENTER 745 795 HARBOR ISLAND MARINA 2013 2013-17 Total Harbor Island Marina Status Description Small Projects HIM Small Capital Projects 0 285 TOTAL HARBOR ISLAND MARINA 0 285 94 Draft 2013 Capital Plan By Location Central Waterfront $ 000's CENTRAL WATERFRONT 2013 2013-17 Total Central Waterfront- Bell Harbor Marina Status Description Small Projects Small Projects 115 115 Pending Future Authorization BHM PileWraps 0 3,450 Total BHM Recreational Boating 115 3,565 Central Waterfront Commercial Bldgs Small Projects Small Projects 370 820 Total Central Waterfront Commerical Bldgs 370 820 TOTAL CENTRAL WATERFRONT 485 4,385 95 Draft 2013 Capital Plan By Location Other Commercial Properties $ 000's OTHER COMMERCIAL PROPERTIES 2013 2013-17 Total Other Commercial Properties Status Description Pending 2013 Authorization Tenant Improvements -Capital 259 1,694 Small Projects Other Props Small Capital 0 500 Pending Future Authorization T102 Bldg Roof Replacement 0 2,430 Total Other Commercial Buildings 259 4,624 TOTAL OTHER COMMERCIAL PROPERTIES 259 4,624 96 Draft 2013 Capital Plan By Location Pier 69 and Other Projects $ 000's PIER 69 AND OTHER PROJECTS 2013 2013-17 Total Other Status Description Commission Authorized P69 N Apron Corrosion Control 6,300 6,300 Pending 2013 Authorization P69 Built Up Roof Replace 1,824 1,824 Small Projects Pier 69 Small Projects 145 145 Small Projects RE Fleet Replacement 476 3,466 Small Projects RE Preliminary Planning 250 1,250 Small Projects RE Technology Projects 250 1,250 Small Projects Marine Maintenance Small Projects 175 450 Small Projects Unspecified Small Projects 0 165 Pending Future Authorization RE: Contingency Renew.&Replace 500 3,500 Total Other 9,920 18,350 TOTAL P69 AND OTHER PROJECTS 9,920 18,350 97 Real Estate Development and Planning Master planning and land development: Terminal 91 Uplands Finalize CSO transaction with King County Des Moines Creek Business Plan Finalize ground lease agreement with Puget Sound Energy Explore emerging opportunities 98 Portfolio Management and Leasing Property Management Achieve net operating income and occupancy targets Fishermen's Terminal Complete asset condition examination and adopt 25 year plan development scenario Complete FVO lease renewal Transfer title to the Downie building Examine alternatives for energy conservation measures utilizing utility company incentive plans Establish an enduring management protocol for the remainder of the rail corridor 99 Harbor Services Financial performance: Achieve net operating income target Fishermen's Terminal: Complete asset condition examination and adopt 25 year plan development scenario Implement net locker solution Shilshole Bay Marina: Update long term site plan Examine implications of revised Shoreline regulations Bell Harbor Marina Plan required infrastructure improvements to wavebreak 100 Financial Overview Fishermen's Terminal Facility Fishermen's Terminal Facility 2010 2011 2012 $'s in 000's Actual Actual Budget Revenue 4,882 4,807 4,919 Direct Expenses 4,742 5,619 5,585 Income from Operations 139 (811) (666) Divisional Allocations 1,680 919 1,371 Corp Allocations 1,826 2,069 2,217 Net Operating Income (3,367) (3,799) (4,254) 101 Century Agenda Milestones & 2013 Business Plan & Capital Briefing August 14, 2012
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