Item No.               8a 
Date of Meeting         May 14, 2019 
Maritime Innovation Center Design Funding 
May 14, 2019 


1

Maritime Innovation Initiative Progress 
Update Business Plan               "The challenging times in all port related 
markets,  like  logistics,  oil  and  gas,  and 
Form advisory group                 maritime, require that we have a window on 
Develop MOU with WA State         new technologies. [The] PortXL [Maritime 
Accelerator]   helped   us   identify   these 
Develop virtual incubator and        trends, bringing new business models to 
accelerator                          our markets and challenging conventional 
businesses." 
Complete design work on Ship
Supply building                     Paul Smits 
CFO, Port of Rotterdam 


Substantial progress since January                                                                       2

Advancing Maritime Innovation 
Seeking authorization for
design services in support
of developing Ship Supply
building at Fishermen's
Terminal. 
Requesting $1,750,000 
Part of 2019-2023 Capital
Improvement Plan 

Vision: Washington State becomes a world leading hub for sustainable maritime and ocean industries...            33

Maritime Innovation Center 
Mission: 
The Port of Seattle's Maritime Innovation
Center will provide support required by marine                    When people think about
and ocean-oriented companies in their effort to                  sustainable BlueTech
modernize and/or innovate the maritime                         industries, we want them
industry and create good-paying Blue Jobs.                       to think about Puget
Sound in the same way the
world equates finance with
The Center will provide this support by making
New York or technology
use of its own facility as an incubator and
with Silicon Valley. 
accelerator environment as well as by
leveraging on local assets, resources and
network 

Seattle becomes global leader in BlueTech                                                                4

Innovation Center Strategic Objectives 
1.   Be a focal point for maritime
innovation 
2.   Become a centralized
information source to the
BlueTech sector 
3.   Offer incubator and
accelerator environment 
4.   Support investment in
BlueTech start-ups and new
technologies 
5.   Support workforce
development and maritime
career exploration 

5

Innovation Center Services 
Business development
assistance 
Professional network and
relationship support 
Educational programs 
Out-reach services 
Facility-based services 
Virtual Services 
6

Benefits to Incubator/Accelerator Companies 
Reduced barriers to
entry 
Networking and
mentoring 
Increased visibility
and stature 
Increased company          SURF Incubator in Seattlehelps early stage high-tech companies 
valuation 
Supporting Maritime Start-ups and Scale-ups                                                           7

Governance 
Recommend that nonprofit partner operate innovation center 




Several types of nonprofit organizations could operate the Maritime Innovtion Center                       8

Facility Location Criteria 
Accessibility 
Access to water 
Access to laydown area 
Proximity to Maritime
Suppliers and Manufacturers 
Visibility 
Historic Preservation,
Aesthetics & Ability to
Leverage Capital 

9

Site Evaluation 
Fishermen's Terminal (FT) site options ranked higher than
Terminal 91 options: 
More proximate to suppliers and partners 
More visible and accessible 
Better access to water 
FT's Gateway and Historic Ship Supply sites ranked similarly 
Ship Supply slightly better based on historic preservation
opportunity 
Capital development costs not considered 

10

Financials 
Center will generate positive
operating income for the Port from
Year one onwards 
Center "operator" will be able to
cover most of its operational costs
from facility rental revenue 
79% in Year 1 to 97% in Year 7 
Center operator will need to secure
contributions of approximately $
72,000 annually for initial 5 years
period 

11

Proposed Building Improvements 
Abatement of regulated materials in existing structure 
Partial existing building demolition (timber structural framework to be
preserved) 
Enhancement of structural piles and framework 
Construction of new MIC building core and shell 
Utility services removal and replacement 
New building perimeter and parking lot paving 

12

Maritime Innovation Center 
Development Schedule 
Maritime/Economic          Project         Project           Project            2018            2019           2020           2021           2022           2023 
Development Project         Sponsor        Manager         Complexity 
Q1Q2Q3Q4     Q1Q2Q3Q4    Q1Q2Q3Q4    Q1Q2Q3Q4    Q1Q2Q3Q4    Q1Q2Q3Q4 
T-91 Uplands          ?            Tim              3 
Development                   Leonard 
Design Funding 
* Community engagement tasks will vary by project needs 
Community Engagement*          Commission Approval

Environmental Review                Planning/Design            Construction 

13 13

Maritime Community Engagement 
Fishermen'sTerminal Master Planning (2015-2016) 
Madison Bay study: Interbay industrial market 
Multiple planning sessions, open houses and
stakeholder meetings 
Need for meeting rooms/conference center 

Maritime Innovation Center Planning (2017-2018) 
SWOT workshop 
Online survey input from 150+ stakeholders 
Interviewed 35 Maritime stakeholders 
Facilitated design charrette 


The Port received significant input that helped focus the Port's innovation initiative and drive Maritime Blue         14 14

Enhancing Engagement: 
Washington Maritime BLUE Initiative 
A Strategy for accelerating the BLUE economy,
technology innovation and sustainability in Washington's
maritime industry. 
A Cluster Organization formed as the focal point for
coordination, incubation, capital investment &
commercialization.
A Maritime Innovation Center to support R&D and
commercialization of innovation technology through
public/private partnerships. 


15

Next Steps 
Develop MOU with WA State (July) 
Develop and pilot maritime incubator
and accelerator initiatives (Q4) 
Fact finding Trips (Q3 and Q4) 
Advisory Committee Meetings 
Complete 60% design work on Ship
Supply building (Q1 2020) 
Make decision on location of
innovation center (Q1 2020) 

Advancing "Virtual Operations" as Port does homework on future location                                          16

Community Benefits 
Job creation 
Enhanced image 
Business development 
Industry innovation and
sustainability 
Increased tax revenue 
Workforce development 
Meeting space for FT
tenants and customers 

A hub for maritime innovation and education                                                               17

APPENDIX 

18

EXvting Pri







i
Fisherrmen6
19

An Ocean of Opportunity 


The global "Ocean Economy" is valued on a conservative basis by the Organization for
Economic Cooperation and Development (OECD) at $1.5 trillion (2010) and growing to
$3.0 trillion by 2030

Stakeholder Input: Room and 
Opportunity for Improvement 
1.  The Maritime industry does not enjoy the
visibility or reputation that other
industries enjoy in Seattle (ex. Aerospace
and IT) 
2. Washington's Maritime industry is not
particularly innovative 
3.  The top three trends/opportunities for the
Washington maritime sector include: 
Electrification 
Ship and vessel design innovation 
Marine renewables 

21

Site Evaluation 
Site 1: Ship Supply Building         Site 2: T91 Uplands            Site 3: FT Gateway
No                           Site Selection Criteria                            Weight
Score      Weighted Score      Score     Weighted Score   Score    Weighted Score
I   Accessiility                                                                                 20%             3              0.6              1             0.2            4            0.8
4 = Facility is within 200 yards of public transit and within 20 minute commute from partners
(UW Applied Physics Lab, Maritime Blue, etc.)
3 = Facility is within 1/4 mile of public transit and within 20 commute from partners
2 = Facility is within 1/2 mile of public transit and within 30 minute commute from partners
1 = Facility is more than 30 minutes drive from partners
II   Access to water                                                                            20%             4              0.8              2             0.4            3            0.6
4 = Facility is on fresh or salt water with moorage capacity
3 = Facility is within 1/4 mile of fresh or salt water - limited moorage capacity
2 = Facility is within 1/2 mile of fresh or salt water - limited moorage available
1 = Access to fresh or salt water difficult or not optimal
III  Access to laydown area for staging                                                         20%             4              0.8              4             0.8            3            0.6
4 = Facility provides a laydown area
3 = Facility is within 200 yards of a laydown area
2 = Facility is within 1/4 mile of a laydown area
1 = Access to laydown area is difficult or not optimal
IV  Proximity to Maritime Suppliers and Manufacturers                                        20%             4              0.8              3             0.6            4            0.8
4 = Faciltiy is within 1/2 mile of machine shops and maritime suppliers (inc. chandlery)
3 = Facility is within 1 mile of machine shops and maritime suppliers (inc. chandlery)
2 = Facility is within 3 miles of machine shops and maritime suppliers (inc. chandlery)
1 = Facility not located in proximity to maritime supply chain
V  Historic Preservation, Aesthetics & Ability to Leverage Partner Capital               10%          4          0.4          3          0.3        3         0.3
4 = Faciltiy is historic and can leverage other capital $
3 = Facility is new and can leverage other capital $
2 = Facility is new but it may not leverage other capital $
1 = Facility not located in proximity to maritime supply chain
VI  Visibility                                                                                   10%             3              0.3              1             0.1           3            0.3
4 = Visible from Seattle arterials and surrounding streets
3 = Visible from property entrance
2 = Visibility possible from property entrance with signage or other building improvements
1 = Not immediately visible
Total Scores 100%          3.7             3.7             2.3            2.4          3.3           3.4
Site Ranking                           1                            3                          2
Fishermen's Terminal offers best location options for Maritime Innovation Center                       22

Center Will Be Built on Partnership                  23

Maritime Innovation Initiatives  RDM Rotterdam 
Converted from a defunct shipyard into a
new interdisciplinary space that supports
events, technical training academy, an
incubator, storage space with a wave tank,
and other testing facilities 
Co-located with a senior secondary
vocational school and a higher professional
educational program 
Supported with funding from the European
Commission, the Port of Rotterdam, and
other sponsors 
Focused on maritime technologies and other
ocean related verticals including innovative
housing concepts over water and design 

24

Maritime Innovation Initiatives - COVE 
Converted an old Coast Guard facility
into a hub for scientific research,
events, incubator space, ocean
technology tenants, and workforce
programming 
Significant government funding and
support 
Focused on ocean technologies 
Governed by a nonprofit organization
that is similar to a cluster, and its
incubator is contracted out to
another company that specializes in
running incubators. 
25

Maritime Innovation Initiatives  Port XL 
"World's first Port Accelerator," spun out of
the Port of Rotterdam, runs as an independent
accelerator 
General co-working office space with fast-
paced programming for startups that are
selected through a competitive process in
cohorts 
Two Seattle based companies have
participated in the accelerator 
Value proposition is the connection to the
port and a growing number of end-users at
one of the largest ports in the world 
XL wants to open US office 

26