PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA             Item No.      5d 
Date of Meeting     May 3, 2011 
DATE:    April 27, 2011 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Melinda Miller, Director, Portfolio Management 
Rebecca Schwan, Real Estate Manager, Portfolio Management 
SUBJECT:  License Agreement between Comcast and the Port of Seattle to for High-Speed
Internet Services at Fishermen's Terminal 
Amount of this Request: $00.00                         Source of Funds: N/A 
Total Project Cost: $00.00 
ACTIONS REQUESTED: 
Request Commission authorization for the Chief Executive Officer to execute a ten-year license
agreement, substantially as drafted in Attachment 1 and according to the terms laid out in this
memorandum, with Comcast Cable Communications Management, LLC, to provide high-speed
internet service at Fishermen's Terminal. 
SYNOPSIS: 
Over the past year, Port staff began receiving requests for faster internet service from current
tenants at Fishermen's Terminal. As we were pursuing our options, Comcast Cable
Communications LLC (Comcast) approached management at Fishermen's Terminal with a
proposal to bring high-speed internet service to the facility. Comcast did an analysis and
determined that the facility met their payback model and is proposing to cover all of the costs of
installation and future maintenance. Proposed construction costs are over $120,000. Comcast
proposes to start by bringing service to the three main office buildings: Fishermen's Center (C-
15), West Wall (C-3) and the Nordby Building (C-2). The capacity to provide service to all of
the upland buildings will be included in the initial installation and will be reviewed in the future.
These three buildings have the highest customer need and use and are currently 95% occupied. 
The proposal has been reviewed by Port Legal, Risk, Engineering, Project Management and
Maintenance departments. Comcast's construction plans are substantially complete. Once the
agreement is executed, they will move forward with securing the appropriate permits. This
license is non-exclusive and does not preclude any other service provider from bringing its 
services to the facility. Legal has determined that the agreement to provide service to our

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
April 27, 2011 
Page 2 of 5 
customers without an obligation to serve our customers represents adequate consideration to
support the agreement from a legal standpoint. 
Failure to proceed with the proposed license would negatively affect the ability of Fishermen's
Terminal to attract new tenants and retain existing ones. Existing or prospective tenants with
computer or data-heavy needs would be unable to conduct business effectively without the
availability of higher speed internet. Several tenants have already expressed to the Port that they
will not be able to renew their leases without faster internet speed, and one tenant left the West
Wall Building in 2010 because of its inability to conduct business with the available internet
options. 
BACKGROUND: 
Currently, the tenants at Fishermen's Terminal are using Internet Service Providers, such as
Integra, Qwest and Clearwire. The problem is that the facility is over 14,000 feet away from the
nearest co-location center. The farther away one is from the center, the slower the service. The
strongest signal at Fishermen's Terminal is approximately .75 Megabits per second (Mbps) 
which is far below typical office user's expectation for internet speed. The only other option for
our current customers is to get a dedicated T1 line from one of the providers that would give
them 1.5 Megabits per second (Mbps) for approximately $450.00 per month. A dedicated T1
line splits the 1.5 mbps between all employees in a given office. This is an expensive option and
for many of the smaller tenants cost-prohibitive.
A typical package from Comcast for a small business owner is 10 Mbps download and two Mbps
upload. A medium sized business (25 + employees) typically uses 20 Mbps download and 10
Mbps upload. Heavy users, such as digital media companies, would require even more. The
system that Comcast proposes to bring in will offer phone, internet and video capabilities. 
As an example, if this infrastructure existed at Fishermen's Terminal, one of our newer tenants,
Maritime Training Services, which specializes in video sales, could get 22 Mbps and two phone
lines for $159/month. 
MARKET CONDITIONS: 
In order to be competitive in this market, the Port needs to provide its tenants with the option of
having high-speed internet at a reasonable cost. Although Comcast is still working on bringing
its services to some of the surrounding areas in this sub-market, these areas can already get faster
internet due to their proximity to the co-location centers. The Port is competing with commercial
space in the Central Business District, which does have this service, and has been offering low
rates and various concessions to attract new tenants.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
April 27, 2011 
Page 3 of 5 
TERMS OF THE PROPOSED LEASE: 
The major elements of the proposed term lease are outlined below: 
Term:               Ten years commencing on date of permit approval 
Use:                 High-speed internet service provided for sale to tenants at
Fishermen's Terminal 
Premises:              TBD upon receipt of final construction drawings 
Base Rent:             N/A 
Rent Increase:           N/A 
Operating Expenses:      N/A 
Port Improvements:       N/A 
Insurance/Liability:        $2 million General Liability. 

FINANCIAL ANALYSIS: 
Budget/Authorization Summary: 
Previous Authorizations                                          $0 
Current request for authorization                                       $0 
Total Authorizations, including this request                                $0 
Remaining budget to be authorized                                   $0 
Project Cost Breakdown: 
Tenant Improvement Allowance                                  $0 
Leasing Broker Commission                                    $0 
Other                                                      $0 
Total                                                            $0 
Source of Funds: 
N/A

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
April 27, 2011 
Page 4 of 5 
Financial Analysis Summary: 
CIP Category        Revenue 
Project Type         Tenant Improvements 
Risk adjusted Discount N/A 
rate 
Key risk factors       N/A 

Project cost for       $0 
analysis 
Business Unit (BU)     Portfolio Management & Leasing, Real Estate Division 
Effect on business     Net Operating Income (NOI) and NPV are unaffected. 
performance 

ALTERNATIVES CONSIDERED/RECOMMENDED ACTION: 
Not Execute License Agreement: Not executing the proposed license would negatively
affect our ability to attract new tenants and retain existing ones. Any new prospect with
computer or data-heavy needs would not be able to conduct business at Fishermen's
Terminal. This would include any creative, technology, or video production type
company. Several tenants have already expressed to the Port that they will not be able to
renew their leases if we do not provide the internet speed they need. In 2010, we lost a
small office tenant in the West Wall Building due to its inability to conduct business with
the available internet service. 
Execute Proposed License: Proceeding with the proposed l icense agreement will
strengthen the Port's ability to attract new tenants and retain existing ones. We would
become more competitive in this soft real estate market. Our tenants would collectively
save thousands of dollars and dramatically increase their internet speeds. This is the
recommended action.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
April 27, 2011 
Page 5 of 5 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
License Agreement. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
None.