PORT OF SEATTLE 
MEMORANDUM 

COMMISSION AGENDA             Item No.      5e 
Date of Meeting  April 12, 2011 
DATE:    April 6, 2011 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Melinda Miller, Director, Portfolio Management 
Patricia Spangler, Real Estate Manager 
SUBJECT:  Term Lease with Golden Alaska Seafoods L.L.C. at the World Trade Center West
Building. (CIP #C800126) 
Amount of this Request: $110,138         Source of Funds: Tax Levy and General Fund 
Total Project Cost: $110,138 
ACTIONS REQUESTED: 
Request Commission authorization for the Chief Executive Officer to execute a five-year lease,
substantially as drafted in Attachment 1 and according to the terms laid out in this memorandum,
at a fair market rate, with Golden Alaska Seafoods L.L.C. at the World Trade Center West
Building. 
SYNOPSIS: 
Golden Alaska Seafoods, L.L.C. is a world leader in the production of high-quality white fish
products and frozen seafoods. The company is a long-time customer of the Port in good standing 
and wishes to re-locate its administrative office to the World Trade Center West Building (WTC
West) when its current lease expires at the end of June. The twelve full-time employees who
work in the administrative office provide support to over 130 Golden Alaska employees at the
height of the fishing season. The lease term is for five years beginning on July 1, 2011, but
Golden Alaska wishes to enter the premises in advance to complete tenant improvements. The
Port determined the market rate of $21/per rentable square foot, or $84,063 for the annual base
rent, with annual increases of $0.50 per rentable square foot. This request includes $80,100 as a
Tenant Improvement Allowance and a $30,038 broker commission for a total request of
$110,138.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
April 6, 2011 
Page 2 of 5 
BACKGROUND: 
The World Trade Center West Building is a four-story Class A commercial office building 
developed in 1998 as part of the Central Waterfront Project. The building currently houses one
retail tenant, several non-profit organizations related to international trade, several private
businesses, and the World Trade Center Seattle Club which is operated for the Port by Columbia
Hospitality. The building is approximately sixty-eight percent (68%) occupied and a majority of
the remaining space has been vacant for over a year. 
Golden Alaska Seafoods L.L.C operates a 305-foot processing vessel, the Golden Alaska, in
partnership with six catcher boats and has produced high-quality whitefish and frozen seafood
for more than twenty years. Golden Alaska Seafoods L.L.C. has been a long-time customer in
good standing of the Port with a preferential use agreement for moorage and a storage agreement
for approximately 10,000 square feet of warehouse at the north end of Terminal 46. Entering into
this new lease for their administrative offices in the World Trade Center West Building will
strengthen the partnership the Port has with the fishing community and with this long-time
excellent customer.
MARKET CONDITIONS: 
The Real Estate Division staff consults several different resources to determine the appropriate
market rate for the World Trade Center West Building including reports on the real estate market
condition prepared by several brokerage firms and a market research report accessed through our
Costar subscription service, and a review of recent transactions for comparable buildings. The
most weight is given to the comparable rents within the Seattle Central Business District
including lower Queen Anne. These are provided to us by the Port's listing broker for the World
Trade Center West Building, Kidder Mathews. These comparables are for lease transactions 
executed within the last six months and include landlord concessions, such as tenant
improvement allowance, abated rent, and total lease term.
Based on the First Quarter 2011 market conditions, using information retrieved from the above
resources, staff negotiated a market rent that starts at $21.00 per rentable square foot and has 
annual $.50 per square foot increases. Concessions include four months abated rent and $20 per
square foot allowance for tenant improvement. 
TERMS OF THE PROPOSED LEASE: 
The major elements of the proposed term lease are outlined below: 
Term:               Five years commencing July 1, 2011. 
Use:                 Administrative office for support of Golden 
Alaska processing vessel operations.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
April 6, 2011 
Page 3 of 5 
Premises:              Premises consists of approximately 4,003 rentable square feet of
office. 
Base Rent:             4,003 rentable square feet @ $21.00 per square foot = $84,063.00
annually. 
Rent Increase:           The Base Rent shall be adjusted on the anniversary of the rent
commencement date and annually thereafter through the term of
this lease increased by $.50 per rentable square feet per year. 
Rent Abatement:        Four (4) months abated rent for the period July through 
October, 2011. 
Operating Expenses:      The Port is responsible for all the building repairs and maintenance
under this full service lease agreement. 
Base Year:             2011 - Tenant is responsible for increases in the building operating
expenses above the Base Year. 
Port Improvements:       $20.00 per rentable square foot not to exceed $80,060. 
Security:               Lessee shall provide a cash deposit, corporate surety company
bond or irrevocable stand-by letter of credit in the amount of
$22,016.50, which is equal to the average of three months base rent 
over the term of this lease. 
Insurance/Liability:        $1 million General Liability. 
Assignment/Sublease:     Conditioned on the Port's prior written consent. 
FINANCIAL ANALYSIS: 
Budget/Authorization Summary: 
Previous Authorizations                                          $0 
Current request for authorization                                  $110,138 
Total Authorizations, including this request                           $110,138 
Remaining budget to be authorized                                   $0 
Project Cost Breakdown: 
Tenant Improvement Allowance                              $80,100 
Leasing Broker Commission                                 $30,038

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
April 6, 2011 
Page 4 of 5 
Other                                                      $0 
Total                                                       $110,138 
Source of Funds: 
Funds for Real Estate Division capitalized tenant improvements are included in the 2011 Plan of
Finance under Committed CIP 800126 Tenant Improvements. The source of those funds for the
capitalized costs will be the Tax Levy. Amortized broker commission payments were included in
the Real Estate Division's 2011 Operating Expense Budget. The source of funds for payment of
the broker fees will be the General Fund. 
Financial Analysis Summary: 
CIP Category        Revenue 
Project Type         Tenant Improvements 
Risk adjusted Discount 9.0% 
rate 
Key risk factors        Risk of Tenant default partially mitigated by the following
factors: 
- Security deposit from Golden Alaska Seafoods L.L.C. in
the amount of $21,207. 
- Golden Alaska is a current tenant of the Port and in good
standing. 
Project cost for       $110,138 
analysis 
Business Unit (BU)     Portfolio Management & Leasing, Real Estate Division 
Effect on business     Net Operating Income (NOI) and NOI After Depreciation for Year
performance        1 through Year 5 of this lease are shown below.
NOI (in $000's)       Year 1    Year 2    Year 3    Year 4    Year 5
Revenue (1)           $57      $88      $90      $94      $97
Expenses (2)          ($6)      ($6)      ($6)      ($6)      ($6)
NOI            $51     $82     $84     $87     $91
Depreciation (3)         ($16)     ($16)     ($16)      ($16)     ($16)
NOI After Depreciation    $35      $65      $68      $71      $75
(1)  Revenue inclusive of rent abatement and estimated operating expense
reimbursements collected from the tenant. 
(2)  Expenses inclusive of amortized broker commissions in the amount of $6,008
per year. 
(3) Depreciation expense is a result of capitalized tenant improvements in the
amount of $80,100, depreciated over the term of the lease.

COMMISSION AGENDA 
T. Yoshitani, Chief Executive Officer 
April 6, 2011 
Page 5 of 5 
IRR/NPV 
NPV    IRR   Payback
(in $000's)    (%)      Years
$243     NA      2

ALTERNATIVES CONSIDERED/RECOMMENDED ACTION: 
Not Execute Lease Agreement: Not executing the proposed lease would mean 4,003
rentable square feet of office would remain vacant resulting in no new revenue
opportunity to the Port. 
Execute Proposed Lease: Proceeding with the proposed lease agreement will increase the
revenue to the Port and would likely increase revenue for the Port Tenants (such as
Anthonys Restaurant, Starbucks, Bell Street Deli and the World Trade Center Seattle
Club) that provide services to support the employees. This is a long-term moorage
customer and tenant of the Port, in good standing, that provides services and jobs to the
maritime industry. This is the recommended action.
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
None. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
None.