COMMISSION 
AGENDA MEMORANDUM                        Item No.          8c 
ACTION ITEM                            Date of Meeting       June 11, 2019 
DATE:     June 4, 2019 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Melinda Miller, Director, Portfolio & Asset Management, Economic Development 
Fred Chou, Capital Program Leader, Seaport Project Management 
SUBJECT:  Pier 66/Bell Harbor International Conference Center Modernization (CIP #C800889) 
Amount of this request:              $10,350,000 
Total estimated project cost:         $11,560,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to: (1) proceed with the
construction phase of the Pier 66/Bell Harbor International Conference Center Modernization
Project; (2) advertise and execute major public works contract; (3) execute purchasing
contracts; (4) employ a project labor agreement for the project; and (5) approve additional
funding of $10,350,000 for a total estimated cost of $11,560,000.
EXECUTIVE SUMMARY 
The original request for design funding combined a redesign of the exterior of Paul Schell
Center at Pier 66 with the interior modernization of Bell Harbor International Conference
Center (BHICC). As design development proceeded, the team and executive leadership decided
to postpone the exterior project and move forward with only the interior. The $2.5 million
design budget was segregated and $1.21 million was allocated to the interior project. 
The rebuilding of the Seattle Waterfront over the next few years presents a distinct opportunity
to leverage the historical financial success and iconic heritage of Bell Harbor in anticipation of
renewed regional and international interest. 
Columbia Hospitality (CHI), our manager, has been an essential part of the project team from
identifying the current market trends to developing the design guidelines and working with the
design team. Through CHI's prudent management and assertive marketing, Bell Harbor has
been profitable every year since opening. 
The intent of this project is to protect the Port's original investment at Pier 66 by refreshing and
modernizing BHICC in response to evolving market expectations. We will achieve this objective
through changes to layout and furnishings, by better integrating the third-floor conference

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 8c                                   Page 2 of 6 
Meeting Date: June 11, 2019 
center with the newly expanded cruise terminal spaces on the first and second floor, enabling
them to function more cohesively and effectively for events, and by maximizing views and
natural light. 
A major accessibility improvement is adding an ADA-compliant communicating ramp between
the 3rd floor Conference Center and the 2nd floor Cruise space that is used for events. Currently
wheelchair or disabled guests have to go down an elevator, north to another door and elevator
up to the second floor. In the same manner, the proposed communicating stair between the 3rd 
floor conference center lobby and 1st floor on the south side will prevent attendees from having
to go outside to get from the conference center to the 1st and 2nd floor spaces. 
Design development has been completed and City of Seattle has issued the building permit.
This project is ready to transition into the construction phase with the Commission's approval. 
In light of the challenging construction bid environment, the project team is doing the following
to mitigate risk: 
Ensuring maximum awareness in contracting community prior to advertising 
Closing the 3rd Floor Conference Center during construction (mid-Nov to mid-May) to
allow easy access for the contractor 
Providing thorough pre-bid walkthrough and 360-degree images to enhance
understanding of work areas prior to bid 
Allocating higher construction contingency (15%) 
Providing a bid alternate 
Co-locating the Construction Management team inside conference center space 
JUSTIFICATION 
When BHICC opened in 1996, it was considered a state-of-the-art facility. BHICC was one of the
few stand-alone conference centers not attached to a hotel. I ts  location on the newly
developed central waterfront fulfilled a distinct and as yet unanswered need for a mid-sized
event space while enhancing the region's destination profile (smaller and more intimate than
Washington State Convention Center and Century Link Field Event Center yet larger than most
hotel event facilities). Subsequently, the conference and cruise spaces were successfully
integrated  to provide expanded  access  to  waterfront  views  and  venues enhancing  its 
competitive position and overall marketability as an event destination. Today, the Pier 66
facility remains one of the few cruise terminals in the country which operates as an event
destination when the ships are not calling, generating revenue and providing economic benefit
to the Port year-round. 
However, the conference and event industry in Puget Sound and worldwide has matured and
the minimum facility standards required to host premier, high-quality conferences and events
have evolved dramatically.  People convene quite differently today than 25 years ago; more
flexible and collaborative spaces along with state-of-the-art technology and impactful audiovisual
display to enhance experience creation are now mission-critical to successful events. 

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

COMMISSION AGENDA  Action Item No. 8c                                   Page 3 of 6 
Meeting Date: June 11, 2019 
The regional marketplace is rapidly evolving, and multiple new and compelling event spaces are
being introduced in Seattle, Bellevue and other nearby communities.  Though our facility is
iconic and enjoys the distinct advantage of a showcase position on the central waterfront, it is
showing its age and a refresh of furniture, fixtures and finishes is required.
The modernization project will increase rentable capacity; add more flexible and customizable
spaces; incorporate new finishes; advance the technology and audio visual infrastructure;
incorporate sustainable and environmentally friendly features; link levels one through three of
the facility with a new interior open staircase and a new ADA-compliant ramp; install interior
and exterior wayfinding signage; procure new furniture; and upgrade the kitchen equipment. 
DETAILS 
Project Goals 
Protect investment; ensure BHICC remains a relevant regional event destination 
Refresh and renew necessary elements whilst also enhancing the waterfront/pacific
northwest aesthetic and the sense of place of this iconic facility 
Respond to evolving market demand for more flexible and collaborative event spaces 
o  Less plenary space and more room for interaction and connection 
o  More networking spaces and work stations adjacent to event spaces 
o  Improve/update technological and audio-visual infrastructure and enhance
experience creation potential 
Further leverage waterfront views and natural light 
Improve the visitor experience (for cruise and event guests) with better wayfinding,
more unified design, and improved flow and integration 
Expand capacity and increase revenue generation 
Improve competitive position, enhance visitor loyalty and continue to grow repeat 
business 
Scope of Work 
The following are the major project elements that are included in the construction package: 
Connections, flexibility, and transparency: Increase the size and character of rentable
areas and add more flexible, adaptable and customizable spaces - visually, audibly, and
physically.   This includes movable operable glass walls and flexible spaces to take
advantage of the water views and create larger and more flexible pre-function areas.
Significant  amount  of  spaces  will  be  reconfigured,  including  the  reception  and
concierge/entry areas 
Modern look: Refresh the facility with new furnishings, finishes, floor coverings, and
window treatment so it feels current but respects its history and established aesthetic
Updated technology:  Future-proof the technology and audio-visual infrastructure
investments with new equipment to support emerging platforms which enable and
enhance connectivity, interactivity, and productivity 

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

COMMISSION AGENDA  Action Item No. 8c                                   Page 4 of 6 
Meeting Date: June 11, 2019 
Sustainability features: Incorporate energy efficiency and green project elements, for
example LED lighting, smart lighting controls, lower energy consumption fixtures and
equipment, and finish materials and furniture made from recycled materials. 
Improved circulation:  Add a new open interior staircase that connects Level one's
Waterlink Gallery and Level two's Waterlink Atrium to the third-floor conference center 
and allows guests to move throughout the facility without going outside as they have to
do now. 
Inclusion and accessibility: Add a new Americans with Disabilities Act (ADA) compliant
ramp connecting the conference center to the International, Olympic, and Waterlink
Atrium spaces that will  provide interior access for disabled guests  and improve
circulation. 
Better Wayfinding: Install interior and exterior signage to improve way-finding 
An efficient "Back of the House":  Upgrade kitchen equipment and relocate support
spaces 
Diversity in Contracting 
Diversity in Contracting Department has determined a 10% WMBE aspirational goal for the
construction contact. 
Schedule 
Commission design authorization                      Q4 2016 
Design start (combined with exterior project           Q1 2017 
that has since been postponed) 
Commission construction authorization                Q2 2019 
Construction start                                       Q4 2019 
In-use date                                              Q2 2020 
Cost Breakdown                          This Request      Total Project 
Design                                              $0        $1,210,000 
Construction                               $10,350,000       $10,350,000 
Total                                          $10,350,000        $11,560,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Maintain Status Quo.  Continue to maintain the facility in its current state
through the operations expense budgets and Bell Harbor International Conference Center's
Furniture, Fixtures & Equipment budget. 
Cost Implications: Revenue Decline Potential of (2.5%) per year 
Pros: 
(1)   Lowest initial capital cost in the short-term (none) 
(2)   No immediate interruptions of conference center operation 

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

COMMISSION AGENDA  Action Item No. 8c                                   Page 5 of 6 
Meeting Date: June 11, 2019 
Cons: 
(1)   Aging facilities that look dated and do not have amenities such as updated audio visual
and zone lighting  systems and flexible 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
decline on average by 2.5% per year without additional investment 
(3)   Increased maintenance costs expected as facilities continue to age and wear out.
Some of the components are obsolete and can no longer be purchased.
(4)   Need for modernization is simply deferred 
This is not the recommended alternative. 
Alternative  2    Modernization:   Proceed  with  construction  funding  to  modernize  the
conference center. Staff has completed project scoping, design development, cost estimating,
financial analysis, environmental review, and permitting. 
Cost Implications: $11,560,000       Revenue Increase Potential: Average 5% per year 
Pros: 
(1)   The proposed plans for the modernized conference center facility will better meet the
current market demands and ensure its financial viability 
(2)   Will enable revenue growth  estimated to increase by an average of 5% per year for
the next 20 years 
Cons: 
(1)   Initial capital investment of $11,560,000 higher in the short term than deferring
improvements 
(2)   Short-term revenue loss during construction period (November 2019 through April
2020) 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                 $7,000,000               $0      $7,000,000 
AUTHORIZATION 
Previous authorizations                          $1,210,000                0      $1,210,000 
Current request for authorization               $10,350 ,000                0     $10,350,000 
Total authorizations, including this request      $11,560,000                0      11,560,000 
Remaining amount to be authorized                    $0             $0             $0 

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

COMMISSION AGENDA  Action Item No. 8c                                   Page 6 of 6 
Meeting Date: June 11, 2019 
Annual Budget Status and Source of Funds 
This project was included in the 2019 Plan of Finance under CIP C800889 BHICC Interior
Modernization with a total project cost of $11,000,000.  The current total project estimate is
$11,560,000.
This project will be funded by the Tax Levy. 
Financial Analysis and Summary 
Project cost for analysis              $11,560,000 
Business Unit (BU)                  Portfolio Management 
Effect on business performance     The interior improvements are expected to increase
(NOI after depreciation)             revenue by 5% annually over the next 20 years. This 
project will generate the Net Cash Flow of $15,168,742
and increase the Net Operating Income by $26,728,742 
based on 20-year cash flow projections. 
IRR/NPV (if relevant)                NPV = $2,408,779 using a discount rate of 6.6% 
MIRR = 7.4% 
Payback = 10.3 years 
CPE Impact                       N/A 
Future Revenues and Expenses (Total cost of ownership) 
Modernizing our existing assets readies them for current and future changes, extends their
useful life, and preserves the economic vitality of our operations. This project would increase
the size of the rentable areas, add more flexible and customizable spaces, and improve its
amenities for guests. If approved, it would better meet the current market demands, preserve
its financial stability and generate incremental revenues with an estimate growth rate of 5%
annually over the next 20 years.
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
October 11, 2016   The Commission authorized $2.5  million  design funding for the
modernization of the Bell Harbor International Conference Center and the faade of the Paul
Schell Center at Pier 66.



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