8a. Maritime Blue Agreement Memo

COMMISSION 
AGENDA MEMORANDUM                        Item No.          8a 
ACTION ITEM                            Date of Meeting      August 13, 2019 
DATE:     August 1, 2019 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Dave McFadden, Managing Director, Economic Development Division 
SUBJECT:  Economic Development CAT II Partnership Agreement with Maritime Blue 
Total contract request:         $200,000 

ACTION REQUESTED 
Request Commission authorization for the Executive Director to execute a joint partnership
agreement with Maritime Blue, a non-profit agency, to develop and pilot a maritime
accelerator initiative, host maritime blue forums, and advance the work of the maritime cluster
organization for one year at the rate of $200,000 and that the commission determine a
competitive process is not appropriate or cost effective and exempt this contract from a
competitive process consistent with RCW 53.19.020. 
EXECUTIVE SUMMARY 
Earlier this year Governor Inslee rolled out Washington State's Strategy for a Blue Economy, a
comprehensive plan setting the course for taking the maritime industry to the highest level of
global sustainability leadership.  The bold plan aligns closely with Port of Seattle goals to
advance maritime innovation, reduce greenhouse gas emissions, and support workforce
training opportunities within the sector for women and people of color.
The proposed agreement with Maritime Blue, a nonprofit cluster organization, is to develop
and pilot a maritime accelerator initiative, host blue forums and advance key strategies within
the state's strategy to sustain Washington state's maritime industries.  These initiatives
constitute the focus for the Port of Seattle's first year partnership with Maritime Blue based on
the Memorandum of Understanding executed between the two organizations. 
Most recently, staff conducted market research and confirmed Maritime Blue to be the only
Maritime cluster organization with the capability and focused support network to implement
this partnership with the Port. At this time, no other maritime nonprofit organization or public
agency has the staff expertise, breadth of advisory members or focus that will allow us to work
in partnership to pilot a virtual maritime business accelerator program and advance key
elements of Washington State's Strategy for a Blue Economy. Maritime Blueprovides unique
skills and knowledge required by this agreement such as knowledge of maritime investment
and finance markets, which complements and augments that which the Port possesses.

COMMISSION AGENDA  Action Item No. 8a                                  Page 2 of 5 
Meeting Date: August 13, 2019 

Both organizations have initiated projects that have engaged maritime businesses, education
and research institutions, and government agencies who have contributed substantially to
advance the Blue Economy strategy.  In 2017-2018, $1.33 million in funding was secured to
support development of the strategy, support community engagement, and help create the
cluster organization.   In 2019, Maritime Blue has raised $100,000 in memberships and
sponsorships.  The organization is also waiting to see if they will receive another Economic
Development Administration grant to continue advancing Maritime BIue initiatives. This level
of involvement from colleagues across the state demonstrates considerable support for both
the Port of Seattle's and Maritime Blue's innovation and sustainability initiatives.
JUSTIFICATION 
State Representative Gael Tarleton provided a compelling vision for Washington's maritime
industry earlier this year when the state strategy was shared: 
"Washington's maritime, fishing, and recreational boating industries are the backboneof the
most trade-centric economy in the country. Tens of thousands of family-wage jobs in the
maritime trades have transformed communities throughout our region and state. Now, we must
find paths to give future generations of Washingtonians access to these jobs and opportunities.
New technologies require new skills. Innovative strategies that integrate educational programs
and skill-based workforce development will ensure that we retain and expand our region's
unique maritime expertise. By working together, we can have smart, green ports that attract
business from all over the worldand thousands of jobs in a clean-trade maritime economy that
works for all of us." 
The proposed agreement with Maritime Blue takes notable first steps to implement this vision 
and the recent memorandum of understanding the Port of Seattle executed with this non-profit
maritime cluster organization:
(1) Advances maritime innovation through development of a pilot accelerator program that
will nurture promising maritime companies and entrepreneurs; 
(2) Advances development of financing networks and programs for small and emerging
maritime companies; 
(3) Supports forums, projects and strategies to reduce maritime greenhouse gas emissions;
and
(4) Advances maritime workforce development. 
Investing in this partnership supports the Port's Century Agenda objectives to be the greenest
and most energy efficient Port in North America and to use the Port's influence to promote
workforce development.

COMMISSION AGENDA  Action Item No. 8a                                  Page 3 of 5 
Meeting Date: August 13, 2019 

Scope of Work 
The agreement will support the following scope of work: 
Develop and implement a pilot maritime accelerator program in 2019/2020 
o  Provide evaluative report on program highlighting successes, outcomes, 
challenges and lessons learned
Advance development of the Port's maritime innovation center 
o  Provide administrative support for the maritime innovation center advisory 
committee 
Developing financing networks and programs for small and emerging maritime 
companies 
Supporting maritime workforce development initiatives including the Maritime Youth 
Collaborative 
Supporting forums, projects and strategies to reduce maritime greenhouse gas 
emissions 
Developing and piloting a maritime accelerator program can help develop an entrepreneurial 
ecosystem that catalyzes innovation and fosters active partnerships between local industry, 
academia and startups in the maritime community. Maritime Blue will select a contractor to 
create a tailored startup program, source targeted startups and pilot the program. The goal for 
the pilot accelerator is to attract 8-10+ early stage maritime companies that can tangibly 
advance their ventures through the accelerator program.
Port staff and Joshua Berger, the Governor's  Maritime Sector  lead, have done extensive 
research on maritime accelerator programs. They have also evaluated several local options to 
stage the virtual maritime accelerator initiative.  If the Commission authorizes the partnership 
agreement Maritime Blue would pilot the maritime accelerator on the following schedule: 
October: Announce program 
December: Launch program 
March: Program conclusion/celebration 
Maritime Blue is also completing a maritime industry capital assessment that can also help 
leverage the accelerator program.  Next Street Financial is doing this study and it is helping 
inventory capital providers and align them with promising maritime ventures. This database of 
capital providers will be helpful to both emerging and established maritime businesses. 
As part of the partnership agreement Maritime Blue will provide administrative support to the 
Port's maritime innovation center advisory committee. The group meets quarterly and is 
comprised  of  maritime  businesses,  education  and  research  institutions,  and  partner 
government agencies.  The group's collective expertise is invaluable towards longer term 
development of facility operations.

COMMISSION AGENDA  Action Item No. 8a                                  Page 4 of 5 
Meeting Date: August 13, 2019 
Maritime Blue will also continue to advance maritime workforce development initiatives. The 
cluster organization is an active part of the Maritime Youth Collaborative and a strong advocacy 
organization for maritime workforce development. Maritime Blue will also support the Port of 
Seattle's efforts  to  develop  a  comprehensive  energy  strategy  for  the  Seattle  Harbor  by 
supporting stakeholder engagement and technology solutions. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 

Alternative 1) Do not authorize agreement with Maritime Blue 
Pros: 
1.  Reduces specific budget request by up to $200,000 a year, which could be used for
other initiatives 
2.  Provides additional time to weigh options for implementing Maritime Blue partnership 
Cons: 
1.  Momentum around WA Strategy for Maritime Blue implementation reduced 
2. Pilot accelerator's impacts and lessons learned could be lost 
3.  Opportunity to build maritime capital networks diminished 
This is not the recommended alternative 
Alternative 2)  Authorize $200,000 agreement with Maritime Blue to implement initiativves
that advance Port priorities and Washington State's strategy for a Blue Economy at a cost not to
exceed $200,000.
Pros: 
1. This new agreement will reinforce the Port of Seattle's commitment to maritime
innovation and the maritime innovation center 
2.  Advancing a virtual maritime accelerator ramps up maritime entrepreneurial initiatives
that are instrumental to the success of the maritime innovation center 
3.  Port financial investments in Maritime Blue will be leveraged by other public and private
members and sponsors 
Cons: 
4.  More time evaluating accelerator options could be helpful. Maritime venture financing
programs are nascent and need improvementThere are other maritime accelerator
programs available (outside Seattle) 
This is the recommended alternative.

COMMISSION AGENDA  Action Item No. 8a                                  Page 5 of 5 
Meeting Date: August 13, 2019 

FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary               Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                          $0        $200,000        $200,000 
AUTHORIZATION 
Previous authorizations                                    0                0                0 
Current request for authorization                          0                0                0 
Total authorizations, including this request                  0                0                0 
Remaining amount to be authorized                    $0             $0             $0 
Annual Budget Status and Source of Funds 
Annual budget request is for $200,000. The source of funds is the King County tax levy. 
ATTACHMENTS TO THIS BRIEFING 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
July 23, 2019  The Commission authorized the Executive Director so sign Memorandum of 
Understanding with non-profit Maritime Blue maritime cluster organization 
May 14, 2019  The Commission authorized design funding for the Maritime Innovation 
Center (Historic Ship Supply Building) 
January 8, 2019  Commission received a briefing regarding Maritime Blue Plan and the
Maritime Innovation Center.

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