PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      6b 
ACTION ITEM 
Date of Meeting    February 10, 2015 
DATE:     January 28, 2015 
TO:       Ted J. Fick, Chief Executive Officer 
FROM:    Joe McWilliams, Managing Director, Real Estate Division 
Mark C. Griffin, Director, Real Estate Development 
SUBJECT:   First Reading of Resolution No. 3703, related to real estate development and
construction work on Port-owned land leased to Port tenants. 

ACTION REQUESTED 
Request First Reading of Resolution No. 3703: A Resolution of the Port Commission of the Port
of Seattle related to real estate development and construction work on Port-owned land leased to
Port tenants. 
SYNOPSIS 
The real estate development community is expressing increasing interest in Port-owned sites that
are available for development now that the real estate market has recovered from the economic
recession. Before bringing forward any additional proposed long-term ground lease agreements
for Commission approval, staff seeks policy direction regarding the best way to facilitate desired
development while also ensuring fair opportunity is given to all contractors interested in
participating in the construction work on the leased property.  The proposed resolution
incorporates the recommended policy approach.
BACKGROUND 
The Port owns a substantial portfolio of land that is available for development consistent with the
Port's goals to generate new revenue and spur regional economic development, including
providing opportunities for interested contractors to participate in construction activity. The
portfolio includes off-airfield property around the airport in Burien, Des Moines and SeaTac and
vacant acreage not under long-term lease in Seattle. 
With the rebound in the real estate market, staff has begun undertaking more competitive
solicitations (e.g., requests for qualifications and proposals (RFQ/Ps)) to long-term ground lease
these sites and take advantage of the favorable market conditions by putting more of this
property into productive use. Staff is also seeing an increase in unsolicited inquiries from
developers interested in long-term leases of some of the available sites.
Staff seeks direction to help ensure all parties interested in participating in construction activity
on Port-owned land have a fair opportunity to do so when the anticipated development work will

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted J. Fick, Chief Executive Officer 
January 28, 2015 
Page 2 of 3 
not be done by the Port and will instead be completed by the Port's tenants/ground lessees. The
Port currently does not have any policies or requirements specifically related to construction
work contracted by the Port's tenants on Port-owned land. This issue is distinct from Portcontracted
construction work, which will continue to be subject to public works requirements.
Staff researched how other public agencies, both locally and regionally, have addressed the issue
of fair opportunity in construction and development activity on publicly-owned land that is not
performed by the public agency. The local agencies surveyed included the City of Seattle, King
County, Seattle Housing Authority and Sound Transit. Several other port authorities were also
contacted including the ports of Tacoma, Oakland, and Long Beach. None of these agencies had
policies that explicitly addressed tenant-contracted work. As such, the Port would be a leader in
formalizing clear policy direction through the proposed resolution. The proposed resolution
would build on the Port's equal opportunity and non-discrimination policy reflected in
Resolution 3668.
Policy direction on this issue will enhance staff's ability to ground lease the available property
and realize the desired revenue and economic development goals. There is some urgency to
address this issue. There are deals currently pending staff and commission review and a business
strategy to put other sites in the development pipeline while market conditions are favorable. 
SUMMARY OF RESOLUTION 
The proposed resolution encourages those tenants that do business with the Port to adopt
voluntary practices to promote open and competitive opportunities for all qualified firms that
would like to provide labor and work on projects located on Port property including: (i) placing 
qualified firms interested in the project on solicitation lists and providing written notice of
subcontracting opportunities to those firms capable of performing the work, including firms on
any list provided by the Port, (ii) procuring project-related work in smaller tasks or quantities,
where feasible, to allow for maximum participation by small businesses, (iii) providing small
businesses interested in the project with adequate and timely information about plans,
specifications and requirements, and (iv) engaging the services of community organizations,
consulting groups, and government offices, including the Port, that provide assistance in
connecting small businesses with business opportunities.
The resolution also directs staff to reference the resolution in any competitive procurement
documents (e.g., requests for interest/offers/qualifications/proposals) for a long-term lease
agreement involving land development and to award preference points in the evaluation of
submittals to any responding firm that states in its submittal that it will commit to contracting
with only those construction contractors that will in turn commit to good faith discussions with
unions interested in providing labor and work during construction of the project. The weight
assigned to the commitment to engage in good faith discussions with labor will be influential but
not outcome-determinative in the evaluation process. 
If there has been no competitive procurement of the proposed long-term lease, the resolution
provides that staff will reference this resolution in any preliminary letter of intent and otherwise

COMMISSION AGENDA 
Ted J. Fick, Chief Executive Officer 
January 28, 2015 
Page 3 of 3 
encourage the proposed tenant/developer to select construction contractors that will agree to
undertake good faith discussions with unions interested in providing labor and work during
construction of the project. 
Finally, the resolution directs staff to include in any leases involving land development a
provision that places responsibility on tenants for ensuring labor harmony during their
operations. 
FINANCIAL IMPLICATIONS 
There are no direct financial implications for the Port in implementing the proposed resolution. 
STRATEGIES AND OBJECTIVES 
The proposed resolution aligns with the Commission's focus on the Port being a catalyst for
generating quality jobs throughout the region as stated in the Century Agenda. 
TRIPLE BOTTOM LINE 
The proposed resolution advances equality of opportunity in projects on Port-owned land and
thereby supports broader economic development, community and environmental objectives. 
ATTACHMENTS TO THIS BRIEFING 
Attachment 1  Resolution No. 3703 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
October 14, 2014 Staff briefing