AGENDA MEMORANDUM                Item No.       6b 
ACTION ITEM                   Date of Meeting   September 26, 2017 
DATE:    August 28, 2017 
TO:     Dave Soike, Interim Executive Director 
FROM:   Dave McFadden, Managing Director Economic Development 
Tim Leonard, Capital Project Manager 
SUBJECT:  Demolition of Fishermen's Terminal Bank Building and Net Sheds 7 and 8 
(CIP #C800525) 
Amount of this request:          $1,300,000 
Total estimated project cost:       $1,530,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director  to (1) proceed with the
demolition and salvage of the existing bank and Net Shed #'s 7 and 8 buildings at Fishermen's
Terminal (FT); (2) advertise and execute a major public works contract for demolition, all for an
amount not to exceed $1,300,000 out of a total estimated project cost of $1,530,000. 
EXECUTIVE SUMMARY 
Demolition of the existing bank and Net Sheds 7 and 8 is necessary for the proposed
development of FT in accordance with the Port's FT Long-Term Strategic Plan objectives to add
maritime related businesses to FT, better enable the facility to serve the fishing industry, and
improve its economic viability. The demolition of these buildings will enable the new Gateway
Building to be constructed in their combined locations near the main site entrance. The Port
has just completed a signed Letter of Intent with a key maritime related tenant to lease the
proposed Gateway Building and is moving forward accordingly with the previously authorized
design of this build-to-suit structure. 
As part of the demolition effort, designated key elements within the existing buildings, such as
the bank vault door and major structural timbers in the net sheds, will be salvaged and stored
for potential reuse towards achieving LEED certification for the proposed FT buildings; and/or
for incorporation in other future Port improvement projects.
As we move forward with the developments at Fishermen's Terminal the Port continues to
market and publicize the terminal's status as a living landmark.  The attached presentation
includes progress updates on this effort. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                       Page 2 of 4 
Meeting Date: September 26, 2017 
JUSTIFICATION 
This project contributes to the Port's Century Agenda goals to support the maritime and fishing
clusters; and create jobs by advancing trade and commerce, promoting industrial growth, and
stimulating economic development. 
The existing bank building was constructed in 1964,has been vacant for the past seven years, 
and is now in need of major repair. Net Sheds 7 and 8 were constructed in 1950 and although
still in use as storage buildings for FT tenants, all commercial fishing tenants displaced by their 
demolition are being located to new net lockers within the other seven net sheds at FT. 
Scope of Work 
Salvage and transport vault door and safe deposit boxes from bank, and designated old
timber structural elements from net sheds, to designated storage location(s) for future
reuse by the Port. 
Remove and cap all existing utilities within 5 feet of buildings to be demolished. 
Demolish existing vacant FT bank building and Net Sheds 7 and 8 down to existing slabs 
and legally dispose of all materials off-site. 
Secure demolition site area from public access for subsequent construction of new
Gateway Building and related site improvements. 
Small Business 
Project management staff is partnering with the small business group to outreach and promote
project opportunities to small and diverse businesses through the Port of Seattle's Small
Business Generator (PortGen) program efforts. This project will be featured at the next
PortGen event scheduled for this September.
Schedule 
The demolition of the existing bank building and Net Sheds 7 and 8 at FT is scheduled to be
completed before the start of construction for the new Gateway Building which begins in 2018. 
Activity 
Commission design authorization          2016 Quarter 4 
Design start                          2017 Quarter 1 
Commission authorization               2017 Quarter 3 
Demolition start                       2017 Quarter 4 
Demolition completion                 2018 Quarter 1 
Cost Breakdown                         This Request       Total Project 
Design                                       $0          $230,000 
Construction                              $1,300,000         $1,300,000 
Total                                      $1,300,000          $1,530,000 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 6b                       Page 3 of 4 
Meeting Date: September 26, 2017 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1 - Demolish buildings as part of new Gateway Building construction contract. 
Cost Implications: 10% or $100,000 less 
Pros: 
(1) Overall demolition and construction cost estimated to be as much as 10% ($100K)
less if performed under a single contract (with new building construction). 
(2) Delay of impact to final net shed tenants to be relocated yet. 
Cons: 
(1) Potential delay of new Gateway Building construction due to unforeseen delays in
net shed tenant relocations and/or existing buildings demolition and salvage work. 
(2) Increased total adverse impact to facility business operations. 
This is NOT the recommended alternative. 
Alternative 2  Proceed with demolition under separate contract ahead of new Gateway
Building construction. 
Cost Implications: 10% or $100,000 more 
Pros: 
(1) Immediate start of demolition will allow time to address potential schedule delays
prior to subsequent new Gateway Building construction. 
(2) Relocation of Net Sheds 7 and 8 tenants is well underway and proceeding promptly
with building demolitions will reinforce Port's communicated outreach message to
FT stakeholders. 
Cons: 
(1) Total cost of demolition and construction estimated to be up to approximately 10% 
($100K) higher. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary          Capital      Expense        Total 
COST ESTIMATE 
Original estimate                             $    $1,300,000    $1,300,000 
AUTHORIZATION 
Previous authorizations                        0      $230,000      $230,000 
Current request for authorization                  0    $1,300,000    $1,300,000 
Total authorizations, including this request            0    $1,530,000    $1,530,000 
Remaining amount to be authorized             $0         $0         $0 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 6b                       Page 4 of 4 
Meeting Date: September 26, 2017 
Annual Budget Status and Source of Funds 
This project was included in the 2017 Plan of Finance under CIP #800525 "FT Strategic Plan"
with a total cost of $42,100,000. 
This project will be funded by the Tax Levy. 
Financial Analysis and Summary 
Project cost for analysis         $1,530,000 
Business Unit (BU)            Maritime Portfolio Management 
Effect on business performance   The new buildings, when complete, will provide
(NOI after depreciation)         incremental leasing revenue and potentially higher lease
rates for existing leasable space. Financial modeling of
proposed developments is ongoing and will be
communicated when a final design is selected.
Demolition costs will be included in the financial analysis
of the selected design of the new buildings/development. 
IRR/NPV (if relevant)           To be updated once a final design is selected for
Commission approval. 
CPE Impact                NA 
Future Revenues and Expenses (Total cost of ownership) 
To be updated once a final design is selected for Commission approval. 
ATTACHMENTS TO THIS REQUEST 
(1)   FT Redevelopment PowerPoint  includes update on FT Public Relations, Marketing, and
Tourism Development Plan. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
December 13, 2016  The Commission authorized $3,000,000 in design funds for FT
Redevelopment Phase 1 (including $230,000 for the buildings demolition). 





Template revised September 22, 2016; format updates October 19, 2016.