PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.  6b 
ACTION ITEM 
Date of Meeting  May 12, 2015
DATE:    May 11, 2015 
TO:      Port of Seattle Commission 
Ted Fick, Chief Executive Officer
FROM:   Mike Merritt, Interim Chief of Staff 
SUBJECT: Terminal 5 interim use and City of Seattle Department of Planning and
Development land-use interpretation

ACTION REQUESTED 
Request the CEO to appeal to the City of Seattle Hearing Examiner Department of Planning and
Development Director's Interpretation No. 15-001, formally issue on May 7, 2015, concerning
the moorage of oil exploration vessels at Terminal 5.
BACKGROUND 
"Big Ship Ready"
Terminal 5 had been vacant since July 2014 with the termination of the lease agreement between
the Port and Eagle Marine Services, Ltd, as the Port pursues the modernization and upgrade of
the terminal. Including Terminal 5, efforts to make Port facilities "Big Ship Ready''include
new larger cranes, strengthening of the pier, berth dredging and other improvements. 
Interim Usage 
The Port of Seattle has entered into a lease with Foss Maritime for the use of approximately 50
acres at Terminal 5. Foss MaritimeCompany, with Royal Dutch Shell as its customer,secured
the property as a short-term berth for vessels used in oil and gas exploration in Alaska.
Foss Maritime's intended use of theleased area atT-5 is to receive, inventory, and stage
equipment and supplies that would be loaded to a fleet of vessels, including exploration drill rigs,
ice-breakers, provisioning vessels, environmental response vessels, tugs and barges for seasonal
operations in Alaska. The fleet of vessels would depart forAlaska in June and would likely 
return to Seattle around October, staying through May. The project began March of 2015 with a
two year lease agreement, signed on February 9, 2015.
On March 2, 2015, a coalition of conservation organizations filed a lawsuitagainst the Port of
Seattle and the Port Commissioners, challenging the Port's entry into the lease with Foss
Maritime.  That lawsuit is expected to come to trial in 2016 and dispositive motions are
scheduled for July 31, 2015.

Template revised May 30, 2013.

COMMISSION AGENDA 
May 11, 2015
Page 2 of 3
On March 24, the Commission unanimously adopted a motion to require explicit Commission
approval for any extension of time for the Foss Maritime Lease, changes in the lease area, or
other modifications of the lease. 
City of Seattle Land Use Interpretation 
On March 9, 2015, the City of Seattle announced that the Department of Planning and
Development would review, investigate and determine whether the Terminal 5 interim use would
be allowed under the terminal's Shoreline Substantial Development Permit. Upon the early 
March announcement of additional review by the city, the Port promptly responded to city
requests for information about the T-5 project only days later, on March 13.
Following a subsequentexchange of information, on May 7, 2015,DPD formally issued an
interpretation that concluded the proposed moorage ofoil-exploration vessels and two support 
tugs is not consistent with the city's legally established cargo terminal use at Terminal 5 and that
an additional permit is necessary. 
Subsequently, DPD clarified that  under SMC 23.88.020  land use code interpretations are site
specific. Thus, DPD Interpretation#15-001 cannot be directly applied to activities occurring at
other Port facilities.  Seattle Mayor Ed Murray, in a letter to the Port Commission on May 8,
2015, reiterated that theDPD Interpretation applied to the specific Terminal 5 use forthe three
oil-exploration vessels alone. The Mayor offered to consider revisions in city regulations if they
do not reflect historic, current or future uses at cargo terminals. Such changes in city regulations,
however, could not be accomplished within the current schedule for the arrival of the Shell oilexploration
vessels.
Analysis by Port staff concludes unless a vessel meets with the City'sInterpretation of a "cargo
vessel," it could not lay berth at Port cargo terminals. Since the Interpretation does not construe
the Shell drilling rigs or support tugs to be "cargo vessels," these particular Shell vessels would
not satisfy City code requirements for mooring at Terminal 5. 
Regardless of the city's follow-up communication, unless theInterpretation is further clarified,
the Interpretation could be used in the future, by either the City or by business competitors of the
Port's tenants and licensees, to challenge future moorage by these types ofvessels. The
conclusion to theInterpretation states that an "additional use permit" is required, but the
Interpretation does not identify what that permit might be.
On May 8, 2015, Foss Maritime announced the company's intention to appeal the DPD
Interpretation, citing impacts on Foss Maritime activities as well as potential conflictswith
common maritime operational practices throughout the city.
In many circumstances, the Port of Seattle considers lay-berthing and provisioning of vessels to
be work critical to successful cargo operations.  Examples of these activities include research
vessels, fishing vessels, ice breakers, grain ship support vessels and fire response vessels.

COMMISSION AGENDA 
May 11, 2015
Page 3 of 3
Summary of Proposed Motions for Commission Consideration
As the city's Interpretation is inconsistent with the Port's historic operation of its cargo terminals 
and raises significant questions about the legality ofdiverse cargo activities at Port of Seattle
cargo terminals, the Port of Seattle Commission directsthe Chief Executive Officerto appeal
Interpretation No. 15-001 to the City of Seattle Hearing Examiner.

ATTACHMENTS TO THIS REQUEST 
City of Seattle DPD Land Use Interpretation issued May 2, 2015
March 24, 2015 Port of Seattle Commission motion regarding Seaport Accountability
May 8, 2015 letter from Diane Sugimura, DPD Director regarding T-5 interpretation 
May 8, 2015, letter from Mayor Ed Murray to the Port Commission
May 8, 2015, statement from Foss Maritime concerning appeal of DPD interpretation
Proposed Motion of the Port of Seattle Commission Regarding Review and Clarification
of Seattle Department of Planning and Development Interpretation #15-001

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
July 22, 2014, Lease termination agreement authorization for Terminal 5 
May 13, 2014, Terminal 5 Facility Modernization Briefing
January 13, 2015, Interim uses of Terminal 5 Briefing
March 24, 2015, Adoption of Port of Seattle Commission motion regarding Seaport
Accountability