ITEM NO: ___7a_________ 
DATE OF MEETING: August 14, 2012 
Century Agenda Milestones
& 
2013 Business Plan &
Capital Briefing
August 14, 2012

Agenda
Century Agenda Milestones
Aviation Business & Capital Plan
Seaport Business & Capital Plan
Real Estate Business & Capital Plan


2

Century Agenda
Milestones
August 14, 2012

Over the next 25 years we will add 100,000 jobs through
economic growth led by the Port of Seattle, for a total of
300,000 port-related jobs in the region, while reducing our
environmental footprint. 
Use our
Position the     Advance this     influence as an       Be the
Puget Sound     region as a     institution to     greenest and
Region as a    leading tourism    promote small     most energy
premier     destination and     business      efficient port in
international       business        growth and      North America
logistics hub       gateway        workforce
development


We will use the Port's real estate, capital assets and financial capabilities to
accomplish our Century Agenda goals. We regard these as tools to
thoughtfully steward, rather than areas well suited for specific 25-year goals. 4

Position the Puget Sound region
as a premier international
logistics hub 
Grow seaport annual container volume
to more than 3.5 million TEUs
Structure our relationship with
Washington ports to optimize
infrastructure investments and financial
returns
Triple air cargo volume to 750,000
metric tons 
Triple the value of our outbound cargo
to over $50 billion
Double the economic value of the
fishing and maritime cluster


5

Advance this region as a
leading tourism destination
and business gateway
Make Sea-Tac Airport the west
coast "Gateway of Choice" for
international travel
Double the number of international
flights and destinations
Meet the region's air transportation
needs at Sea-Tac Airport for the
next 25 years
Double the economic value of
cruise traffic to Washington state


6

Use our influence as an institution
to promote small business growth
and workforce development 
Increase the proportion of funds
spent by the Port with qualified
small businesses firms on
construction, goods and services
to 25% of the eligible dollars spent
Increase work force training, job
and business opportunities for
local communities in trade, travel
and logistics


7

Be the greenest and most energy
efficient port in North America 
Meet all increased energy needs through
conservation and renewable sources
Meet or exceed agency requirements for storm
water leaving Port owned or operated facilities
Reduce air pollutants and carbon emissions,
specifically:
-- Reduce air pollutant emissions by 50% from 2005 levels
-- Reduce carbon emissions from all Port operations by 50% from
2005 levels and reduce aircraft-related carbon emissions at Sea-
Tac by 25%
Anchor the Puget Sound urban-industrial land
use to prevent sprawl in less developed areas
Restore, create, and enhance 40 additional
acres of habitat in the Green/Duwamish
watershed and Elliott Bay


8

2012 Timeline
January
Commission adopted draft Century Agenda goals
February  July
Commissioner public outreach
Summer
Port staff develops business plans including 5-year milestones
Fall
Finalize Century Agenda goals and Regional/Port initiatives


9

Aviation Division
2013 Business Plan 
August 14, 2012

Outline
State of Economy and Aviation Industry
State of Sea-Tac Airport
Environmental Scan
Strategies/Strategic Goals
Links to Century Agenda, Key Initiatives
Capital Program Overview
2013 Budget Challenges

11

Airline Industry
Industry was profitable in 2011
Heading towards profitable year in 2012 in spite of:
Weak economic trends in US
Continued economic uncertainty in Europe
Relatively high price of oil
Focus on profit rather than market share allows industry
to break ties to economic cycle
Focus on cost, profitable routes, high load factors
Growth focused on large hubs with international connections
Locally, Alaska Air Group reported record second
quarter earnings

12

2012 Airline Activity at Sea-Tac
2012 Enplanements:
Domestic  Int'l   Total
June       0.9%   9.8%   1.7%
June YTD     1.8%   5.1%   2.2%
Growth fueled by increased load factors
Available      Load Factor
Seats     2012    2011
June     0.3%    86.8%   86.0%
Q2     0.2%   85.1%   84.0%
YTD    -0.4%    83.9%   81.9%

13

State of Sea-Tac Airport
Enplanement growth first half of 2012 exceeding
budget (+2.2%); maintaining 2012 forecast of +1.5%
Seeing growth in non-airline revenues, particularly
concessions, but parking and rental car revenues
lower than budgeted in 2012
Global economic worries, and slow down in U.S.
economy cast doubt on strength of recovery
Enplanement growth of 2.2% forecasted for 2013

14

Enplaned Passengers
Traffic dropped only
19,000                                                                             3% in 2008-9

18,000                                                                             recession, pointing
out resiliency of
17,000
market demand
16,000
2011 was bounce
15,000
back year  sooner
14,000
than expected
13,000
Assumptions:
12,000
2012: 1.5% 
11,000
2013: 2.2%
10,000
2007   2008   2009   2010   2011   2012   2013   2014   2015   2016   2017             2014+: 2.2%


15

Financial Trends at Sea-Tac
Following slides show Sea-Tac's performance since
2007 for key performance measures
Overall, Sea-Tac has faired well in a deep recession,
reflecting the resiliency of the demand for air service
in this market, and the ability of the Port to manage
through challenging economic circumstances


16

Net Operating Income
NOI ($ in millions)
180
NOI is traditional measure
175

170                                                                           Good indicator of cash flow, but

165                                                                               aeronautical cost-recovery

160                                                                               business model can make NOI

155
misleading
150
Increased debt service generates
145
higher NOI
140
2007       2008       2009       2010       2011      2012 Fcst
Debt service savings produces lower
NOI after Debt Service & Interest Income ($ in millions)
60                                                                                   NOI

50                                                                   NOI after debt service and

40                                                                       interest income is better

30                                                                       indicator of net cash flow

20                                                                       available to invest

10                                                                   2012 impacted by non-aero

-
2007       2008       2009       2010       2011      2012 Fcst              NOI drop

17

Capital Spending, Debt
Capital Spending ($ in millions)
$350
Capital spending has
$300

$250
declined from peak
$200                                                                               spending years

$150                                                                           Focus has been on rental

$100
car facility and renewal
$50

$0                                                                               and replacement projects
2007       2008       2009       2010       2011      2012 Fcst
Debt/Enplaned Passenger ($ in 000s)
200                                                                            Issued debt in 2009 (RCF)
180                                                                                and 2010.
160
140                                                                            Anticipate bond issue in
120
100                                                                                2013
80
60
40
20
0
2007       2008       2009       2010       2011      2012 Fcst
18

Airline Costs - CPE 
Capital spending is major
$17.00
16.49
$16.00                                                                        driver of CPE
15.47
14.87
$15.00
14.15                                Use of PFCs to offset
$14.00
13.41
$13.00                   12.64                                                  revenue bond debt service
13.25
11.95
$12.00                                                                        mitigated rise in CPE
11.10     11.79            11.89
11.73                    11.63     11.75
$11.00
11.10
10.92
$10.00                                                                     Red line shows CPE

$9.00                                                                          forecast in 2005 when

$8.00
2005    2006    2007    2008    2009    2010    2011   2012 Fcst          airline agreement (SLOA)
Cost Per Enplanement (CPE)       CPE - 2005 Forecast (SLOA)
was signed
CPE has been lower than
2005 forecast in every year

19

Environmental Scan: Key
Considerations
Strong finances: O&D airport; cash flow/reserves; low competition
Anticipate continued growth in international travel, especially Asia
Cargo declining in 2012, still a long-term opportunity
Economic uncertainty remains: slow recovery in US, Europe
Non-aeronautical NOI increasing, needed for future investments
Major capital requirements: vertical circulation, NorthSTAR, FIS
upgrade/replacement
Long-term throughput/efficiency/cost effectiveness of terminal
investments; focus on technology
Long-term planning issues: airport capacity, drives capacity, hotel,
south access, cargo development, off airport property development
Airline agreement, or no agreement  still discussing

20

Business Plan
Framework
Built around Aviation's seven strategies/strategic
goals
Enduring, long-term
For each strategic goal, five-year objectives
Measurable
Incorporates Century Agenda milestones
For each objective, multiple actions
Capital projects
Initiatives

21

Strategies/Strategic Goals
1. Operate a world-class international airport by:
Ensuring safe and secure operations
Meeting needs of our tenants, passengers and the
region's economy
Managing our assets to minimize the long-term total
cost of ownership
2. Become one of the top ten customer service airports in
the world by 2015 (measured by the ACI ASQ index)
3. Lead the airport industry in environmental innovation
and minimize the airport's environmental impacts

22

Strategies/Strategic Goals
4. Reduce airline costs (CPE) as far as possible without
compromising operational and capital needs 
5. Maximize non-aeronautical net operating income (NOI)
consistent with current contracts, appropriate use of
airport properties and market demand
6. Continually invest in a culture of employee
development, organizational improvement, and
business agility
7. Develop valued community partnerships based on
mutual understanding and socially responsible
practices

23

Considerations for 2013
Given 2012 O&M growth of 15%, budget target for
2013 is to limit growth of aeronautical O&M to 3%
Available budget for new initiatives limited, requiring
difficult priority setting
Aeronautical rate setting model for 2013 dependent
on terms of agreement or resolution if no agreement

24

Objectives and Actions
Aviation business plan builds on 2012-2016
business plan. Many objectives remain the same.
This presentation will focus on:
Initiatives tied to Century Agenda
Other Key initiatives tied to Aviation strategies


25

Century Agenda Links
Triple air cargo volume to 750,000 metric tons by
2017 
Increase air cargo volume to 350,000 by 2017
Expand Cargo VI - $6.3 million
Expand Cargo II - $11.8 million
Cargo III  install infrastructure to facilitate Federal Express
warehouse expansion  $ TBD
Cargo IV  complete analysis of redevelopment needs in
2014 
Add 2 international main-deck air cargo freighter services
Develop air cargo support areas  initiate development by
end of 2013.
26

Century Agenda Links
Make Sea-Tac Airport the west coast "Gateway of
Choice" for international travel
Complete short-term improvements needed to improve
customer service in existing FIS facility
Not planning to do mid-term improvements to FIS
Increase international arrivals operational efficiency 
initiate CIP to build new or expand existing FIS facility


27

Century Agenda Links
Double the number of international flights and
destinations
Develop 3 new international routes, and develop
additional service in one existing market by 2017
Continue with international incentive program  increased
operating cost of $179K in 2013
New/expanded FIS facilities  see prior slide




28

Century Agenda Links
Meet the region's air transportation needs at Sea-Tac
Airport for the next 25 years
Complete sustainable master plan by 2015
$1.75 million in 2013, $10 million total cost (including
environmental review
Optimize air terminal utilization through incorporation
of design flexibility and technology
Modify ticket counters in zones 1, 2 and 3 (3 separate
CIPs), including common self-bag drop in zone 1.
Modify checkpoints 2-5 (future CIP)
Evaluate, initiative development of airport hotel
$100K in 2013 for consultant
29

Century Agenda Links
Implement conservation practices that will enable
airport to meet all future electricity load growth (2010
baseline) through conservation and renewable
energy
Develop, design and install energy efficient lighting
pilot projects
Develop long-term energy forecast ($25K)
Perform energy audits of Sea-Tac facilities ($60K per
year)
Develop measurable efficiency metrics for utility and
facility
30

Century Agenda Links
Meet or exceed agency requirements for storm water
leaving Port owned or operated facilities
Establish a low-impact development (LID) program
incorporating treatment, on-site retention, infiltration
and water reuse concepts in a manner consistent with
wildlife hazard management and other limitations
Survey public entities with established LID programs
Establish methodology to assess low impact development
opportunities at new projects through a site review process


31

Century Agenda Links
Reduce air pollutant and carbon
Reduce emissions form from vehicle fleet
Qualitatively assess airport fleet to determine optimal
vehicle turnover rates
Complete electrical ground service equipment (EGSE)
infrastructure
Monitor use and develop plan to ensure 75% of GSE
vehicles use new system
Complete pre-conditioned air system
Develop plan to install electrical vehicle charging
stations

32

Other Strategic Initiatives
Maximize non-aeronautical NOI
Concessions
Complete master plan for concessions program transition
2015  2017: $300K
$500K for leasing consultant. Initiate outreach to potential
new operators, particularly small/ACDBE businesses
Parking
Advertising, branding, search engine optimization: $36K
increase
Implement valet parking service: new CIP, new revenues
and operating costs in 2013.

33

Other Strategic Initiatives
Employee development/organizational
improvement/business agility
Continuous Process Improvement (CPI)
Continue and increase consulting support ($30K) to train
staff and accelerate use of CPI across the Port.
Expand internal internship program by 5% (17 to 20)



34

Other Strategic Initiatives
Community partnerships
Complete Part 150 noise and land use study
$175K for implementation plan
GRE siting and feasibility study - $10K 
Replace noise monitors - $2 million CIP
Safe, secure operations
Reduce pests in Main Terminal area
Implement unified pest control contract - $215K 



35

Capital Program
Significant capital projects not included in 2012-16
capital program include:
Aeronautical:
All elements of NorthSTAR program (only $46 million
included last year): + $230 million
Long-term FIS solution: $400+ million
800 MHz radios Next Generation P25 switch $15 million
Baggage system recapitalization  airport costs unknown,
but likely significant
Non-aeronautical:
Hotel, land development infrastructure: cost TBD
Roadways  South access: cost TBD

36

2013 Budget Challenges
Moderate enplanement growth: 2.2%
Airline realignment peak year spending,
approximately $17 million O&M costts
Significant RMM expenses associated with capital
projects (e.g., NorthSTAR)
Full year of operating costs for 2012 FTEs for rental
car bussing operations
Potential for new airline rate setting approach

37

Seaport Division
2013 Business Plan
August 14, 2012

Century Agenda - Connections
Over the next 25 years, the Seaport will add jobs through
economic growth while reducing our environmental footprint.
In order to achieve this goal we will accomplish the following:
Position Puget Sound region as a premier logistics hub:
Grow container volume to 3.5 million TEUs*
Structure relationship with WA ports to optimize
infrastructure investments and financial returns
Triple the value of outbound sea cargo
Double the economic value of fishing & maritime clusters
Advance the region as a leading tourism destination:
Double the economic value of cruise traffic to WA state

*TEU: One TEU represents the cargo capacity of a 20-foot intermodal container  39

Century Agenda - Connections
Use our influence as an institution to promote small
business growth and workforce development.
Be the greenest, most energy efficient port in N America:
Meet all increased energy needs through conservation and
renewable sources
Meet or exceed agency requirements for stormwater1
Reduce air pollutants and carbon emissions; specifically:
Reduce air pollutant emissions by 50%2
Reduce carbon emissions from all port operations 50%2
Anchor Puget Sound urban-industrial land use
Restore, create and enhance 40 additional acres of habitat
in the Green/Duwamish River watershed and Elliott Bay

1 - leaving port owned or operated facilities 2 - compared to 2005 levels       40

Terminal 91
Pier 86
Pier 66

Terminal 46 
T-18 On-Dock Rail
BNSF (SIG - North)

Terminal
30 
T-5 On-Dock Rail
Terminal 18 
BNSF (SIG - South)

Terminal 25 S
Terminal 5


UPRR (ARGO)


41 41

Seaport Strategies
The Seaport strategies, business plan, capital and budget
plans are aligned with our Proposed Century Agenda goals. 
Our Commercial Strategy is aligned with Positioning Puget
Sound region as a premier logistics hub and Advance the
region as a leading tourism destination all our lines of
business will support this goal; including:
Containers        Industrial Properties
Cruise          Fishing & Other Maritime
Grain           (Commercial Moorage)


42

Seaport Strategies
The Seaport strategies, business plan, capital and budget
plans are aligned with our Proposed Century Agenda goals. 
In addition, our Asset Stewardship and Green Gateway
Strategies are aligned with Using our influence as an
institution to promote small business growth and
workforce development and Be the greenest, most energy
efficient port in N America including programs focused on: 
Small bus./workforce dev.     Air quality improvements
Freight mobility & land use    Energy stewardship
Asset stewardship       Stormwater mgmt 
Dredging        Habitat restoration

43

Commercial Business Strategy
Business Development     Financial Sustainability      Port Advocacy
Growing the Seaport's Business       Maintaining Financial Independence    Building public & community support
Strategic Goal             Strategic Goal             Strategic Goal
Enhance regional economic       Improve the Seaport's income     Maintain and support
development by increasing cargo    from operations              relationships that cultivate
freight & passengers moving                               overall Port goals for freight
through the Port's Terminals                                 movement and economic
development in Washington
Guiding Principles           Guiding Principles          Guiding Principles
Retain existing customers        Prioritize projects that generate    Maintain a business-friendly
Develop & maintain relationships    sustainable rates of return        environment
with strategic partners            Maximize asset utilization to       Ensure efficient freight mobility
Capitalize on opportunities to       increase returns on investments    within the Harbor and on-ward
secure new business           Maintain market lease rates      to inland destinations
Maintain freight and passenger     Maximize efficiency of dollars     Reinforce the Seaport's
mobility                      spent and resources used         economic and environmental
benefit story
Overarching Objective        Overarching Objective
Increase container volume and     Maintain the Seaport's financial    Overarching Objective
cruise activity to meet Century      independence                 Manage/maintain advocacy for
Agenda 5 & 25 year objectives                              Port issues with Stakeholders

44

Container Capacity Growth Plan
2M      3M        3.5M       4M    5M 
Work
Work Package #1    Work Package #2     Work Package #3
Package #4
TERMINALS        TERMINALS          TERMINALS          TERMINALS
T-30 Reactivation         T-5 increase internal CY         T-5 RTG Ops                T-5 18 acre expansion
T-25 expansion to 16 acres                                                       T-46 additional RTG ops
RAILYARDS           RAILYARDS
RAILYARDS         Wide span gantry cranes at Main   ARGO domestic relocation     RAILYARDS
SIG North Expansion       SIG                     On-dock IY at T-18 or 16th Ave     SIG South expansion
T-5 IY second shift                                    conversion to IY.              New remote rail yard shared
MAINLINE            SIG Stacy Yard conversion.     with POT
OFF-DOCK        Sound Transit/BNSF new track   ARGO re-designed for high
20 acre third party container     agreement Seattle to Tacoma       density operations              MAINLINE
support                Crown Stampede Pass                                   Could be constrained?
Duwamish Corridor Project        MAINLINE
TRAFFIC                              Vancouver bypass
OFF-DOCK                           OFF-DOCK
SR-519                                     Point Defiance bypass
EMW grade separation      20 acre 3rd party container       Tukwila-Tacoma track.         T25/30 off-site yard
40-acre 3rd party support
Spokane Street Viaduct      support                   Sumner Connection
(Sept. 2012)                                        Ellensburg/Lind cutoff
Viaduct Construction        TRAFFIC                                             TRAFFIC
accommodates freight.       1st Ave S. & E. Marginal Way      OFF-DOCK                Steady night gates.
T-5 surface street           Increase use of night gates.        20 acre 3rd party support
intersection
Continuous day gate hours                              TRAFFIC 
SR-509 
More night gates
Key: Blue = completed Yellow = under way White = planned
45

Asset Stewardship Strategy
Condition Assessment       Asset Maintenance       Capacity Growth
Understand Existing Assets            Maintain Existing Assets          Invest in New Assets When Warranted
Strategic Goal             Strategic Goal             Strategic Goal
Assess and document existing     Reduce total cost of ownership of   Align asset investments to
condition of major assets          seaport assets                support long term market
demand
Guiding Principles           Guiding Principles          Guiding Principles
Maintain complete asset register    Manage assets in a financially     Enhance existing assets to
Perform condition assessments    sustainable manner            support long term growth
Align asset maintenance with long  Invest in new assets to support
term strategies                commercial strategy

Overarching Objective        Overarching Objective       Overarching Objective
Steward assets to retain
Maintain a condition assessment    Prioritize and execute asset
program that sustains or extends    maintenance program that        existing business and support
the life of our assets              sustains our assets              future growth


46

Green Gateway Strategy
Compliance Management     Commercial Support    Community Commitment
Programs we have to do            Programs that help support       Initiatives that reflect our commitment
our business advantage
Strategic Goal                                   Strategic Goal
Strategic Goal
Meet local, state and federal                                  Engage stakeholders to build
Collaborate with industry to reduce
regulations as effectively as        impacts while enhancing our       understanding and support for
possible                    competitive advantage          environmental initiatives
Guiding Principles           Guiding Principles          Guiding Principles
Meet legal obligations           Develop environmental initiatives to   Communicate that the Port is an
Use scientific knowledge and      enhance the Port's economic       environmental leader and vital
programmatic approaches to use    competitiveness              economic engine.
resources most efficiently          Maintain collaborative approach to    Inform and collaborate with
Partner with internal/external       environmental problem solving       community stakeholders to
support economic and
stakeholders for effective
environmental sustainability
environmental management
Overarching Objective                             Overarching Objective
Overarching Objective
Inform and engage stakeholders
Minimize the % of environmental    Implement programs that reduce
budget spent on compliance to     resource use, emissions and the     to aid in understanding and
support of the Port's focus on
maximize resources available for    Port's carbon footprint, while
increasing our competitive advantage   balancing economic and
other environmental strategies                               environmental sustainability

47

Commercial
Business
Seaport Lines of Business


48

2013 Seaport Outlook: Container
Market Outlook:
Transpacific volume projected at 3.9% growth
U.S. economy and consumer demand uncertain
Revenue Assumption:
Seattle Harbor volume forecast of 1.66M TEUs*
Container lease rate increase Jan 1, 2013 offset by
GAAP straight-line rent adjustment
Major Work (in alignment with proposed Century Agenda):
Support terminal operators to retain & grow business
Advance export, import & domestic cargo programs

*TEU: One TEU represents the cargo capacity of a 20-foot intermodal container  49

2013 Seaport Outlook: Container
Major Work (continued)
Joint market FTZ, Green Gateway, air cargo programs
Advocate/facilitate terminal access & freight mobility
Execute Asset Stewardship Program
Reconstruct major docks to extend useful life
Evaluate feasibility of intermodal logistics hub 
Negotiate long term lease of Terminal 46
Initiate program to deepen federal channels
Assess storm water infrastructure needs
Advance implementation of improved T18 Access

50

Historical Financial Overview
Containers                2010    2011    2012    2012
$'s Thousands               Actual   Actual  Forecast  Budget
Revenues
Container Revenues          61,332   64,114   73,724   60,735
Container
Total Revenues            61,332   64,114   73,724   60,735
Expenses
Seaport Expenses (excl env srvs)    5,006    5,998    6,724    7,724
Environmental Services          1,772    1,237    1,222    1,222
Maintenance Expenses         1,470   1,546   1,546   1,546
P69 Facilities Expenses            326     313     336     336
Other RE Expenses               8      8     20     20
CDD Expenses              1,367   2,774   4,139   2,939
Police Expenses               843     951    1,067    1,093
Corporate Expenses           6,031   6,498   6,959   7,115
Operating Expenses          16,821   19,325   22,013   21,995
Net Operating Income         44,511   44,789   51,711   38,740
Note*: $12,127K of the forecasted increase in 2012 revenue is the result of the
refunding of the T18 Special Facility Bonds in December 2011.
51

Historical Financial Overview
2010     2011     2012     2012
$'s Thousands                Actual    Actual    Forecast   Budget
Income From Operations
Terminal 18**                   16,097     16,235     24,850     12,661
Other  Terminal 5         22,640  23,241  23,102  22,502
Terminal 46                   11,840    11,905    12,302    12,302
Facilities
Terminal 30 (25/28)                7,646     7,978     7,650     7,650
Terminal 106 West                 0        0        0        0
Terminal 3                      (32)      (27)      (36)      (36)
Container Management           (2,434)    (3,372)    (3,266)    (3,266)
Total Income From Operations     55,756    55,959    64,602    51,813
Allocations
Divisional Allocations             (4,782)    (3,575)    (4,078)    (4,078)
Corporate & CDD Allocations       (6,463)    (7,595)    (8,812)    (8,994)
Total Allocations              (11,245)   (11,170)   (12,890)   (13,072)
Net Operating Income          44,511    44,789    51,711    38,740
Note**: Except for 2012 Forecast, Terminal 18 IFO is net of debt service related to special
facility revenue bonds.

Income from Operations (IFO) = Revenue  Direct Expense Charges       52

2013 Seaport Outlook - Cruise
Market Outlook:
Continued growth expected in global cruise industry
Alaska cruises retain strong market share 
a favorite destination for first time and repeat cruisers
Revenue Assumptions:
186 vessel calls scheduled for 2013
820,000 plus revenue passengers
Major Work (in alignment with proposed Century Agenda):
Seek long term agreement with additional cruise line
Market available berths for new Alaska itineraries
and NW Cruising (3-4 day ship + landside experience)
Complete T91 Fender Upgrade & P66 Pile Wrapping

53

Historical Financial Overview
Cruise                    2010    2011    2012
$'s Thousands               Actual   Actual   Budget
Revenues
Cruise Revenues            11,862   12,287   11,815
Cruise
Total Revenues            11,862   12,287   11,815
Expenses
Seaport Expenses (excl env srvs)    1,043     836    1,198
Environmental Services           98     220     227
Maintenance Expenses         1,390    925   1,649
P69 Facilities Expenses             59      56      55
Other RE Expenses               3     15     47
CDD Expenses               113    209    448
Police Expenses               936    1,055    1,345
Corporate Expenses           1,234    1,366    1,423
Operating Expenses          4,875   4,682   6,392
Net Operating Income          6,987   7,605   5,422

54

2013 Seaport Outlook - Grain
Market Outlook:
Export corn/soybean market forecast is mixed due to
harvest conditions in US and other countries
Revenue Assumptions:
Grain volume estimated at 4.5 million metric tons
Estimate will be refined when terminal operator forecast is
received in late August
Major Work (in alignment with proposed Century Agenda):
Continue early discussions regarding lease extension

55

Historical Financial Overview
Grain                   2010    2011    2012
$'s Thousands                Actual   Actual   Budget
Revenues
Grain Revenues              6,035   5,613   6,089
Grain
Total Revenues              6,035   5,613   6,089
Expenses
Seaport Expenses (excl env srvs)      306     277     261
Environmental Services            10      3      1
Maintenance Expenses           29     34     40
P69 Facilities Expenses             30      28      31
Other RE Expenses               1      0      0
CDD Expenses                41     89    181
Police Expenses                187     207     228
Corporate Expenses             478     536     615
Operating Expenses           1,081   1,175   1,357
Net Operating Income          4,955   4,439   4,732

56

2013 Outlook - Industrial Properties
Market Outlook:
Occupancy expected to remain constant
Market conditions remains weak
Revenue Assumptions:
Revenue forecast to increase by 2.6%
Major Work (in alignment with proposed Century Agenda):
T-108 paving overlay



57

Historical Financial Overview
Industrial Properties            2010     2011    2012
$'s Thousands                Actual   Actual   Budget
Revenues
Industrial Properties Revenues     13,219   13,382   14,486
Industrial Total Revenues         13,219  13,382  14,486
Properties Expenses
Seaport Expenses (excl env srvs)     3,184    3,220    3,395
Environmental Services           692     562     655
Maintenance Expenses           943    997   1,342
P69 Facilities Expenses             87      84      83
Other RE Expenses              126     137     191
CDD Expenses                210    372    605
Police Expenses                823     910    1,000
Corporate Expenses            1,592    1,800    1,912
Operating Expenses           7,658   8,081   9,183
Net Operating Income          5,561   5,301   5,303

58

Historical Financial Overview
2010     2011     2012
$'s Thousands               Actual     Actual    Budget
Income From Operations
Terminal 115                  4,150     4,325     4,345
Terminal 91 Seaport Industrial        2,352      2,213      2,253
Terminal 108                   755       571       592
by    Terminal 18 Bulk Terminals   930  964  902
Terminal 106 Container Related        590       544       614
Industrial  Terminal 104        (21)   76   209
Terminal 103                   557       547       549
Facility   Pier 16/17         474   472   499
Terminal 107                   204       210       203
Harbor Island Central               187       214       220
Terminal 106 Bulk Terminals           83        85        86
Terminal 46 Industrial                125       114         7
Terminal 25 South                (47)      (33)      (171)
Terminal 117                    (25)      (26)        0
Terminal 10                     (57)      (91)      (109)
Terminal 5 Container Support           4       (85)      (150)
Terminal 106 Bldgs. 1 & 2           (208)      (167)      810
Other (former T30 property)                0          0          0
Industrial Properties Admin           (637)      (877)     (1,194)
Total Income From Operations     9,415     9,057     9,664
Allocations
Divisional Allocations            (1,492)      (989)     (1,289)
Corporate & CDD Allocations      (2,362)    (2,767)    (3,072)
Total Allocations              (3,854)    (3,756)    (4,361)
Net Operating Income          5,561     5,301     5,303
Income from Operations (IFO) = Revenue  Direct Expense Charges    59

2013 Outlook: Maritime Operations
Market Outlook:
Commercial Fishing in Alaska expected to remain strong
Factory trawler moorage demand expected to remain strong
Historical demand is expected for other commercial vessels
Revenue Assumptions:
Facility use fees at market rates & vessel calls remain flat
Major Work (in alignment with proposed Century Agenda):
Increase commercial moorage business harbor wide
Evaluate models for increasing third party maritime activity


60

Historical Financial Overview
Maritime Operations          2010    2011    2012
$'s Thousands               Actual   Actual   Budget
Revenues
Docks Revenues             3,611   3,513   3,856
Maritime
Total Revenues             3,611   3,513   3,856
Operations
Expenses
Seaport Expenses (excl env srvs)    2,006    2,214    2,239
Environmental Services           61     105     184
Maintenance Expenses         1,144   1,092   1,233
P69 Facilities Expenses             25      24      26
Other RE Expenses               8     20     42
CDD Expenses               265     93    200
Police Expenses               412     455     501
Corporate Expenses            527     590     675
Operating Expenses          4,448   4,595   5,100
Net Operating Income          (837)   (1,082)   (1,244)


61

Historical Financial Overview
2010    2011    2012
$'s Thousands                Actual   Actual   Budget
Income From Operations
Terminal 91 Fishing Related         2,562    2,201    2,207
by   Terminal 91 Vessel Operations    436  477  377
Maritime Terminal 91 Operations Overhead  (2,425) (2,732) (2,766)
Terminal 25 Vessel Operations        295     312     313
Industrial Pier 2 Docks            51    50    52
Facility  Pier 34 Docks             0    0    0
Terminal 46 Maritime Docks          (19)     21     241
Pier 69 Vessel Operations            (1)     (31)     (44)
Pier 28 Docks                  (29)     105     101
Terminal 18 North-Mooring Dolphins       0      88     173
Total Income From Operations      869     490     653
Allocations
Divisional Allocations             (778)    (504)    (667)
Corporate & CDD Allocations       (928)   (1,067)   (1,230)
Total Allocations              (1,706)   (1,572)   (1,897)
Net Operating Income           (837)   (1,082)   (1,244)
Income from Operations (IFO) = Revenue  Direct Expense Charges      62

2013 Outlook: Maritime Security
& Emergency Preparedness 
Emergency Preparedness (EP):
Execute FEMA IEMC* action plan items for Seaport
Develop joint EP Program with Real Estate/Corporate
Develop and conduct EP training and exercising
Review and strengthen departmental COOP# plans
Seaport Security:
Administration of grants for 3rd parties concludes in 2012
Maintain compliance with Federal security regulations
Conduct security awareness training and exercising
Perform security risk assessments and improvements
Seek & pilot emerging customs screening technology

*Integrated Emergency Management Course  #Continuity of Operations Plan  63

Historical Financial Overview
Security                   2010    2011    2012
$'s Thousands               Actual   Actual   Budget
Revenues
Security Grants                1,791     394    1,598
Maritime
Total Revenues             1,791    394   1,598
Security
Expenses
Seaport Expenses (excl env srvs)     759     353     417
Environmental Services            0      0      0
Maintenance Expenses           6     14      8
P69 Facilities Expenses             0       0       0
Other RE Expenses               0      0      0
CDD Expenses                2      3     16
Police Expenses                 0      0      0
Corporate Expenses            517     386     593
Security Grant Expenses         1,983     481    1,476
Operating Expenses          3,267   1,238   2,510
Net Operating Income         (1,477)    (843)    (912)

64

Projects &
Capital Budget
Seaport Asset Stewardship


65

Terminal 5



Project             CIP STATUS        2013 2013-2017 2018-2022   TOTAL Net Operating Income Snapshot  2012
$'s Thousands              Forecast
T5 Crane Cable Reels     Commission Authorized$   40 $ 40     -$$ 40 Terminal 5 - 158 Acres
Revenue               24,504
T5 Street Vacation CompletionCommission Authorized$   80    1,650$-$         1,650$
Expenses
T5 Dock Rehabilitation    Pending Future Authorization-$         4,500$          1,300$         5,800$
Direct Expenses               1,401
T5 New Cranes (4)      Pending Future Authorization-$        26,000$27,100$  53,100$
Container Management*          1,012
T5 Dredge Phase 2      EXPENSE         1,250$4,080$-$     Divisional Allocations*4,080$        1,263
Corporate Allocations*             2,730
T5 Maintenance Dredging  EXPENSE           -$ $ 500    7,000$ 7,500$
Total Expenses              6,407
TOTAL                     1,370$     35,400$36,770$   72,170$
Net Operating Income         18,097
66 
Note - Excludes Prospective Items
Note*- Pro-rata share based on total acres

Terminal 18



Project                CIP STATUS         2013 2013-2017 2018-2022   TOTAL Net Operating Income Snapshot   2012
$'s Thousands               Forecast
T18 Street Vacation Completion  Commission Authorized $   80    1,290$-$      Terminal 18 - 194 Acres1,290$
T18 S Gate Access Improvements Pending Future Authorization500$         2,000$-$     Revenue2,000$          27,546
T18 Dock Rehabilitation       Pending Future Authorization -$        18,600$-$      Expenses18,600$
Direct Expenses                2,697
T18 Remove IHI Cranes       EXPENSE        $ 128    1,128$-$         1,128$
Container Management*           1,242
T18 Maintenance Dredging     EXPENSE           -$$ 200    2,800$         3,000$
Divisional Allocations*               1,551
T18 Paint MHI Cranes        EXPENSE            -$    -$ 2,200$ 2,200$    Corporate Allocations*           3,352
Total Expenses               8,842
TOTAL                         $ 708   23,218$5,000$      28,218$
Net Operating Income          18,704
67 
Note - Excludes Prospective Items
Note*- Pro-rata share based on total acres

Terminal 30



Project                CIP STATUS         2013 2013-2017 2018-2022   TOTAL Net Operating Income Snapshot   2012
$'s Thousands               Forecast
T30 Alaskan Way St Vacation   Commission Authorized $   20    5,720$-$     Terminal 30 - 70 Acres5,720$
Revenue                8,313
T25 Dock Rehabilitation       Pending Future Authorization -$    -$          5,500$         5,500$
Expenses
T30 Dock Rehabilitation       Pending Future Authorization -$    -$         11,000$         11,000$
Direct Expenses                 663
South T25 Container Yd Phase 2 Pending Future Authorization -$        14,100$-$      Container Management*14,100$           448
Divisional Allocations*                560
T30 Maintenance Dredging     EXPENSE            -$ 2,900$2,300$ 5,200$
Corporate Allocations*             1,210
Total Expenses               2,881
TOTAL                         $ 20   22,720$       18,800$      41,520$
Net Operating Income           5,432
68 
Note - Excludes Prospective Items
Note*- Pro-rata share based on total acres

Terminal 46



Net Operating Income Snapshot    2012
$'s Thousands               Forecast
Project                CIP STATUS         2013 2013-2017 2018-2022   TOTAL Terminal 46 - 88 Acres
Revenue                13,069
T46 Dock Rehabilitation       Pending 2013 Authorization2,400$        19,800$-$         19,800$
Expenses
T46 Viaduct Driven Capital Work  Pending 2013 Authorization 100$      $ 300      -$$ 300
Direct Expenses                 767
T46 Development          Pending Future Authorization -$        37,500$2,500$   Container Management*40,000$        564
T46 Demo Crane 54        EXPENSE           -$$ 450     -$$ 450 Divisional Allocations*           704
Corporate Allocations*             1,521
T46 Paint ZPMC Cranes (4)    EXPENSE            -$    -$ 2,200$ 2,200$
Total Expenses               3,555
TOTAL                          2,500$      4,700$58,050$ Net Operating Income62,750$      9,514
69 
Note - Excludes Prospective Items                                            Note*- Pro-rata share based on total acres

Pier 66



Net Operating Income Snapshot    2012
$'s Thousands               Forecast
Project                CIP STATUS             2013 2013-2017 2018-2022   TOTAL Pier 66 Cruise Operations
Revenue                3,181
P66 Apron Pile Wrap        Commission Authorized      2,000$2,783$-$     Expenses2,783$
Direct Expenses                 800
Pier 66 Cameras Upgrade Analog Pending 2013 Authorization  $ 370 $ 370     -$$ 370
Cruise Services Management*         271
P66 Shore Power          Pending Future Authorization  1,000$13,700$         -$ 13,700$    Divisional Allocations*          251
Corporate Allocations*               784
Total Expenses              2,106
TOTAL                             3,370$      16,853$-$      16,853$
Net Operating Income          70 1,075
Note - Excludes Prospective Items
Note*- Pro-rata share based on total revenue

Terminal 115



Net Operating Income Snapshot    2012
$'s Thousands                Forecast
Terminal 115
Revenue                4,962
Expenses
Direct Expenses                 616
Project              CIP STATUS         2013 2013-2017 2018-2022   TOTAL
Industrial Properties Mgmt*           409
Divisional Allocations*                441
T115 Railroad Spur Upgrade  Pending Future Authorization 150$         1,100$ -$ 1,100$    Corporate Allocations*         1,052
Total Expenses              2,519
TOTAL                       $ 150   1,100$-$       1,100$
Net Operating Income          2,443
71 
Note - Excludes Prospective Items
Note*- Pro-rata share based on total revenue        71

Terminal 104

Terminal 103 
Terminal 106

Terminal 108
Net Operating Income Forecast         2012 Forecast
$'s Thousands             T108  T106  T104  T103  Total
Terminals 108,106,104,103
Revenue              735 1,897  293  594  3,519
Project                CIP STATUS          2013 2013-2017 2018-2022   TOTAL
Expenses
Direct Expenses             143   224    84   45   496
T104 Site Improvements       Pending Future Authorization$  400    2,080$-$         2,080$
Industrial Properties Mgmt*        61   143    24   49    276
T106 & T108 Drainage and Paving Pending Future Authorization$  300    7,200$ -$ 7,200$    Divisional Allocations*         65   154   26   53   299
Corporate Allocations*          156   368    62   126    712
TOTAL                          $ 700   9,280$-$    Total Expenses9,280$       425  888  197  273 1,783
Net Operating Income        310  1,009   97  321 72 1,736
Note - Excludes Prospective Items
Note*- Pro-rata share based on total revenue

Terminal 91





73

Seaport Projects - Terminal 91
Project                CIP STATUS             2013 2013-2017 2018-2022   TOTAL
Pier 90 C175 Roof Replacement  Commission Authorized     $ 105    2,396$-$         2,396$
T30/91 Projects            Commission Authorized     $ 344 $ 344      -$$ 344
P91 Fender System Upgrade   Commission Authorized    $ 850 $ 850     -$$ 850
Pier 90 C173 Roof Replacement  Pending Future Authorization  $ 200    1,500$-$         1,500$
T91 Second Gangways Per Berth Pending Future Authorization   1,000$9,500$-$         9,500$
Widen T91 West Berth Access  Pending Future Authorization  $ 200    2,400$-$        2,400$
T91 Railroad Spur Upgrade     Pending Future Authorization  $ 150    1,050$-$         1,050$
T91 Substation Upgrades      Pending Future Authorization  $ 150    2,500$-$         2,500$
T91 Industrial Warehouse(in shortfill)Pending Future Authorization  $ 100    17,400$-$         17,400$
T91 Berth 6&8 Redev        Pending Future Authorization     -$ 24,500$-$        24,500$
Dredge Pier 90 East Berths     Pending Future Authorization     -$ 6,600$-$         6,600$
T91 Maintenance Dredging     EXPENSE                -$ 2,300$         -$ 2,300$ 
TOTAL                              3,099$      71,340$-$      71,340$
Note - Excludes Prospective Items




74

Seaport Projects - Other
Project                CIP STATUS             2013 2013-2017 2018-2022   TOTAL
Argo Yard Roadway - Element 1  Commission Authorized      1,910$1,958$-$         1,958$
Cruise Capital Allow-CTA Lease  Commission Authorized     $ 200    1,000$400$         1,400$
Seaport Security Projects      Commission Authorized     $ 813 $ 813      -$$ 813
Seaport Small Projects       Small Projects           $ 700    2,900$          2,500$         5,400$
Seaport Green Port Initiative     Pending 2013 Authorization   $ 815  $ 815      -$$ 815
Other                 Small Projects          $ 525    3,033$         3,204$         6,237$
Container Support Yard-3.5M T#1 Pending Future Authorization     -$ 30,000$-$        30,000$
East West Waterways Deepening Pending Future Authorization     -$ 1,850$75,850$ 74,000$
Container Support Yard-3.5M T#2 Pending Future Authorization     -$ -$ 35,000$35,000$
Pier 34 Dolphins & Cat for Barges Pending Future Authorization  $ 500    2,500$-$         2,500$
Contingency Renew & Replace  Pending Future Authorization     -$ 30,000$150,000$ 120,000$
Asset Condition Assessment   EXPENSE             $ 450    1,260$2,930$4,190$ 
TOTAL                              5,913$      76,129$314,163$  238,034$
Note - Excludes Prospective Items




75

Seaport Project Plan 2013-2022 
Draft as of 08/03/2012
$'s in 000's                           2013    2013-2017 2018-2022   Total
Commission Authorized/Underway      6,442   18,844     400   19,244
Pending 2013 Authorization           3,685   21,285      0   21,285
Pending Future Authorization          4,650   256,580   276400   532980
Small Projects                   1,225    5,933    5,704   11,637
Total                          16,002   302,642   282,504   585,146
Major Expense Projects             1,828   12,818   19,430   32,248
Total Projects                    17,830   315,460   301,934   617,394
Other
Prospective Capital Projects             0   632,950   231,500   864,450



76

2013 Seaport Financial Outlook
Operating Revenue:
Projected to increase $10.5M compared to 2012 Budget:
Increase due to refunding of T18 Special Facility Bonds
$12.1M
Increase in crane, industrial property, dock revenue $1.2M
Decrease in security grant revenue ($1.6M)
Decrease in grain revenue ($1.0M)
Estimates will be refined in the 2013 budget process



77

2013 Seaport Financial Outlook
Expense Trends and Risks:
Comprehensive asset condition assessments
Maintenance dredging
Repair costs
Crane removal
Storm water infrastructure
NW Clean Air Strategy
Environmental Remediation Liability Expense
Tribal fishing coordination


78

2012 Seaport Financial Outlook
2010    2011    2012    2012   2012 Bud Var
$'s Thousands               Actual   Actual  Forecast  Budget     $ %
Revenues
Operating Revenues          96,060   98,910  110,361   96,980   13,381  13.8%
Security Grants                1,791     394    2,603    1,598    1,005  62.9%
Total Revenues            97,850   99,304  112,964   98,578   14,386  12.7%
Expenses
Seaport Expenses (excl env srvs)   12,303   12,899   14,476   15,236     760   5.0%
Environmental Services         2,632    2,127    2,289    2,289      0   0.0%
Maintenance Expenses         4,981   4,608   5,817   5,817      0  0.0%
P69 Facilities Expenses            527     506     531     531       0   0.0%
Other RE Expenses             147     180     300     300      0   0.0%
CDD Expenses              1,998   3,539   5,588   4,388   (1,200) -27.3%
Police Expenses              3,201    3,578    4,141    4,167     26   0.6%
Corporate Expenses           10,378   11,177   12,176   12,332     156   1.3%
Security Grant Expenses         1,983     481    2,688    1,476   (1,212) -82.1%
Envir Remed Liability            1,439     (633)      0       0       0    NA
Operating Expenses          39,590   38,463   48,006   46,536   (1,470)  -3.8%
Net Operating Income         58,261   60,842   64,958   52,042   12,916  24.8%
Note*: $12,127K of the forecasted revenue variance is the result of the refunding of the T18
Special Facility Bonds in December 2011.
79

2013 Seaport Business Plan
Risks:
Competitive threats
U.S. economic recovery stalls or contracts
Loss of business due to traffic congestion
Loss of business due to lower cost competitive ports
Escalating liability, project and overhead costs
Escalating land use pressures
Legislation/regulation/inequities that impede port
competitiveness


80

2013 Seaport Business Plan
Key Highlights:
Overall business outlook is uncertain for Seattle
mirroring uncertain U.S. economy and global outlook
Business Plan aligns with Century Agenda & CEO goals
Advance "Commercial Strategy" to retain & grow business
Build upon "Green Gateway" strategy, brand & successes
"Asset Stewardship" & dredging are critical area of focus
Continue business-friendly & collaborative approach
Comply with Port & government requirements

81

Real Estate Division
2013 Business Plan 
August 14, 2012

Division Objectives
Provide for NOI consistent with 2012 levels
Continue execution of deferred maintenance obligations
Maintain an aggressively defensive posture while
waterfront infrastructure projects underway
Position assets for long term growth
Provide for amended real estate policies as necessary
with regard to:
Recommendations from Century Agenda planning



83

Real Estate 2013 Budget Preview
Operating Revenues expected to decrease by
approximately 1% relative to 2012 Budget
Positive trailing indicators:
Market conditions continue to tighten, albeit with aggressive owner
contributions
Capital markets are thawing
Development projects are underway (mostly residential)
Exposures/risks:
Eastside Rail Corridor sale to King County; GNP bankruptcy
Deferred maintenance costs
Tenant improvement allowances
Competition for capital
Pending debt re-payment challenge looms
Major infrastructure projects along the waterfront

84

Real Estate Division
Financial Overview
2010    2011    2012    2012   2012 Bud Var
$'s Thousands                 Actual   Actual  Forecast  Budget     $ %
Revenues
Revenue                   21,500   22,071   22,068   22,389    (321)  -1.5%
BHICC & WTC Revenue           8,320   9,498   9,037   10,012    (975)  -10.3%
Total Revenues               29,820   31,569   31,105   32,401   (1,296)  -4.1%
Expenses
Real Estate Exp (excl Maint,P69,Hosp)   9,305    9,759    9,920    9,920      0   0.0%
Real Estate BHICC & WTC          6,964   7,600   7,109    7,870    761  10.0%
Eastside Rail Corridor                 504    1,585     203      203       0    0.0%
Maintenance Expenses            6,652    7,192    9,562    9,687    125   1.7%
P69 Facilities                       226      150      198      198       0    0.0%
Environmental Services & Planning        924     871     987     987      0   0.0%
Seaport Expenses (excl env srvs)         253     359     421     421      0    0.0%
CDD Expenses                 803    917   1,266   1,266     0   0.0%
Police Expenses                 1,198    1,301    1,433    1,442      9   0.7%
Corporate Expenses               4,671    5,018    5,177    5,229     52   1.0%
Envir Remediation Liability               (2)       7       0       0       0    0.0%
Operating Expenses            31,499   34,758   36,277   37,224    947   2.7%

Net Operating Income           (1,678)   (3,189)   (5,172)   (4,823)   (349)  -10.9%
85

Financial Overview
Harbor Services  Fishing & Commercial
Fishing and Commercial         2010    2011    2012
$'s Thousands                Actual   Actual   Budget
Revenues
Operating Revenues              2,753    2,549    2,667
Total Revenues              2,753   2,549   2,667
Expenses
Real Estate Exp (excl Maint & P69)     1,850    1,757    1,847
Maintenance Expenses            1,430    1,435    1,828
P69 Facilities                       23      23      33
Environmental Services & Planning       324     277     309
Seaport Expenses (excl env srvs)         45      67      70
CDD Expenses                335    198    225
Police Expenses                 430     465     519
Corporate Expenses               857     866     964
Operating Expenses            5,296   5,090   5,795

Net Operating Income           (2,543)   (2,541)   (3,129)
86

Financial Overview
Harbor Services  Recreational Boating
Recreational Boating           2010    2011    2012
$'s Thousands                Actual   Actual   Budget
Revenues
Operating Revenues              8,794    8,960    8,974
Total Revenues              8,794   8,960   8,974
Expenses
Real Estate Exp (excl Maint & P69)     2,633    2,684    2,803
Maintenance Expenses            1,647    1,543    2,145
P69 Facilities                       61      61      81
Environmental Services & Planning       309     280     274
Seaport Expenses (excl env srvs)         45      67      70
CDD Expenses                169    349    412
Police Expenses                 337     372     415
Corporate Expenses              1,715    1,813    1,881
Operating Expenses            6,916   7,170   8,081

Net Operating Income           1,878   1,790     893
87

Financial Overview
Portfolio Management
Portfolio Management          2010    2011    2012
$'s Thousands                Actual   Actual   Budget
Revenues
Revenue                   8,980   9,507   9,911
BHICC & WTC Revenue           8,320   9,498   10,012
Total Revenues              17,300   19,005   19,923
Expenses
Real Estate Exp (excl Maint & P69)     4,036    4,465    4,348
Real Estate BHICC & WTC         6,964   7,600   7,870
Maintenance Expenses            3,339    3,809    5,220
P69 Facilities                       58      58      72
Environmental Services & Planning       119     168     236
Seaport Expenses (excl env srvs)        144     186     201
CDD Expenses                250    312    556
Police Expenses                 431     463     508
Corporate Expenses              1,747    1,872    1,978
Operating Expenses           17,087   18,934   20,989
Net Operating Income            212     71   (1,066)
88

Financial Overview
Eastside Rail Corridor
Eastside Rail Corridor           2010    2011    2012
$'s Thousands                Actual   Actual   Budget
Revenues
Operating Revenues               114      85      22
Total Revenues                114     85     22
Expenses
Real Estate Exp (excl Maint & P69)      157     167     186
Eastside Rail Corridor                504    1,585     203
Maintenance Expenses              6     46     64
P69 Facilities                        0       0       0
Environmental Services & Planning        0      30      60
Seaport Expenses (excl env srvs)         0       0       0
CDD Expenses                 11     12      8
Police Expenses                   0      0      0
Corporate Expenses                74     196     101
Operating Expenses             751   2,037    621
Net Operating Income            (637)   (1,952)    (599)
89

Financial Overview
RE Development & Planning
RE Development & Planning      2010    2011    2012
$'s Thousands                Actual   Actual   Budget
Revenues
Operating Revenues               756     918     812
Total Revenues                756    918    812
Expenses
Real Estate Exp (excl Maint & P69)      628     686     737
Maintenance Expenses             204     308     427
P69 Facilities                        7       6      11
Environmental Services & Planning       173     115     108
Seaport Expenses (excl env srvs)         19      38      80
CDD Expenses                 37     46     65
Police Expenses                   0      (0)      0
Corporate Expenses               279     269     305
Operating Expenses            1,347   1,469   1,733

Net Operating Income            (591)    (551)    (922)
90

Draft 2013 Capital Plan

Total Real Estate Division $ 000's
TOTAL REAL ESTATE DIVISION     2013   2013-17 Total
Commission Authorized/Underway      9,688       9,861
Pending 2013 Authorization           2,898      10,233
Pending Future Authorization          2,826       39,306
Small Projects                   2,471      10,221
TOTAL                 17,883     69,621



91

Draft 2013 Capital Plan
By Location
Fishermen's Terminal $ 000's
FISHERMEN'S TERMINAL                           2013     2013-17 Total
FT Waterside Projects Capital Projects
Status                Description
Small Projects            FT Waterside Small Capital Projects             15            175
Pending Future Authorization   FT NW Dock West Improvements                0            800
Pending Future Authorization   FT Net Shed 9 Roof Replacement              606            606
Pending Future Authorization   FT Dock 3 Fixed Pier Improvement               0           3,000
Pending Future Authorization   FT Dock 4 Fixed Pier Improvement               0           3,500
Total FT Waterside                                      621          8,081
FT Upland Projects Capital Projects
Status                Description
Commisson Authorized      FT C15 HVAC Improvements              3,388         3,561
Small Projects            FT Uplands Small Capital Projects             125            550
Pending Future Authorization   FT Paving/Storm Upgrades                  150           1,650
Pending Future Authorization   FT C14 (Downie) Bldg Roof & HVAC              0            950
Pending Future Authorization   FT C-2 (Norby) Bldg Roof & HVAC             150           1,150
Pending Future Authorization   FT C-15 Bldg East Sewer Line                100            850
Pending Future Authorization   FT C-15 Bldg Subsidence Imp                250           2,750
Pending Future Authorization   FT 25 Year Plan Improvements                500          13,000
Total FT Landside                                     4,663         24,461
TOTAL FISHERMEN'S TERMINAL                          5,284       32,542

92

Draft 2013 Capital Plan
By Location
Shilshole Bay Marina $ 000's
SHILSHOLE BAY MARINA                           2013     2013-17 Total
Shilshole Bay Marina Recreational Boating
Status                Description
Pending 2013 Authorization    SBM Central Seawall Replacement             715            915
Pending 2013 Authorization    SBM Restroom Replacement                100          4,800
Pending 2013 Authorization    SBM Paving                             0          1,000
Small Projects            Small Projects                          375            825
Pending Future Authorization   SBM Fuel Float & Bldg Improvements             0           1,100
Total SBM Recreational Boating                            1,190         8,640
Shilshole Bay Marina Commercial Prop
0           0
Total SBM Commercial Prop                               0           0
TOTAL SHILSHOLE BAY MARINA                         1,190        8,640



93

Draft 2013 Capital Plan
By Location
Maritime Industrial Ctr & Harbor Island Marina $ 000's
MARITIME INDUSTRIAL CENTER                        2013     2013-17 Total
Maritime Industrial Center
Status                Description
Small Projects            MIC Small Capital Projects                  175            225
Pending Future Authorization   MIC Building A1 Roof Replacement             570               570 
TOTAL MARITIME INDUSTRIAL CENTER                       745            795 
HARBOR ISLAND MARINA                          2013     2013-17 Total
Harbor Island Marina
Status                Description
Small Projects            HIM Small Capital Projects                    0            285
TOTAL HARBOR ISLAND MARINA                           0         285




94

Draft 2013 Capital Plan
By Location
Central Waterfront $ 000's
CENTRAL WATERFRONT                         2013     2013-17 Total
Central Waterfront- Bell Harbor Marina
Status                Description
Small Projects            Small Projects                          115            115
Pending Future Authorization   BHM PileWraps                           0           3,450
Total BHM Recreational Boating                             115         3,565
Central Waterfront Commercial Bldgs
Small Projects            Small Projects                          370            820
Total Central Waterfront Commerical Bldgs                      370           820
TOTAL CENTRAL WATERFRONT                         485        4,385





95

Draft 2013 Capital Plan
By Location

Other Commercial Properties $ 000's
OTHER COMMERCIAL PROPERTIES                     2013     2013-17 Total
Other Commercial Properties
Status                Description
Pending 2013 Authorization    Tenant Improvements -Capital                259          1,694
Small Projects            Other Props Small Capital                    0            500
Pending Future Authorization   T102 Bldg Roof Replacement                  0           2,430
Total Other Commercial Buildings                           259         4,624
TOTAL OTHER COMMERCIAL PROPERTIES                    259        4,624





96

Draft 2013 Capital Plan
By Location

Pier 69 and Other Projects $ 000's
PIER 69 AND OTHER PROJECTS                        2013     2013-17 Total
Other
Status                Description
Commission Authorized      P69 N Apron Corrosion Control             6,300          6,300
Pending 2013 Authorization    P69 Built Up Roof Replace                 1,824          1,824
Small Projects            Pier 69 Small Projects                     145            145
Small Projects            RE Fleet Replacement                     476           3,466
Small Projects            RE Preliminary Planning                    250           1,250
Small Projects            RE Technology Projects                    250           1,250
Small Projects            Marine Maintenance Small Projects             175            450
Small Projects            Unspecified Small Projects                    0            165
Pending Future Authorization   RE: Contingency Renew.&Replace             500           3,500
Total Other                                           9,920         18,350
TOTAL P69 AND OTHER PROJECTS                        9,920       18,350



97

Real Estate Development
and Planning
Master planning and land development:
Terminal 91 Uplands
Finalize CSO transaction with King County
Des Moines Creek Business Plan
Finalize ground lease agreement with Puget Sound Energy
Explore emerging opportunities



98

Portfolio Management
and Leasing
Property Management
Achieve net operating income and occupancy targets
Fishermen's Terminal
Complete asset condition examination and adopt 25 year plan development
scenario
Complete FVO lease renewal
Transfer title to the Downie building
Examine alternatives for energy conservation measures utilizing
utility company incentive plans
Establish an enduring management protocol for the remainder of
the rail corridor


99

Harbor Services
Financial performance:
Achieve net operating income target
Fishermen's Terminal:
Complete asset condition examination and adopt 25 year plan
development scenario
Implement net locker solution
Shilshole Bay Marina:
Update long term site plan
Examine implications of revised Shoreline regulations
Bell Harbor Marina
Plan required infrastructure improvements to wavebreak


100

Financial Overview
Fishermen's Terminal Facility
Fishermen's Terminal Facility    2010     2011     2012
$'s in 000's                  Actual    Actual   Budget
Revenue                4,882    4,807    4,919
Direct Expenses             4,742    5,619    5,585
Income from Operations          139     (811)     (666)
Divisional Allocations            1,680      919     1,371
Corp Allocations              1,826    2,069    2,217
Net Operating Income          (3,367)   (3,799)   (4,254)



101

Century Agenda Milestones
& 
2013 Business Plan &
Capital Briefing
August 14, 2012