COMMISSION 
AGENDA MEMORANDUM                        Item No.          10a 
ACTION ITEM                            Date of Meeting     December 8, 2020 
DATE:     December 1, 2020 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Dave McFadden, Managing Director Economic Development 
Stephanie Jones-Stebbins, Managing Director Maritime Division 
Kyra Lise, Director Real Estate Development 
Elena Franks, Capital Project Manager 
SUBJECT: Fishermen's Terminal Development Program -  Maritime Innovation Center (CIP
#C801084) 
Amount of this request:                        $0 
Total estimated project cost:          $16,000,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to: 
(1) Execute an Interagency Agreement with the Washington State Department of Commerce 
for the $5,000,000 grant offered by the Clean Energy Fund Program to fund Fishermen's
Terminal (FT) Maritime Innovation Center (MInC). 
(2) Authorize Construction of the Maritime Innovation Center, which is the condition for
executing the Interagency Agreement with Washington State Department of Commerce. 
There is no request for funding associated with this authorization at this time. Staff will add an
additional authorization step for the MInC and come back to the Commission to authorize bid
and funding for the project when design work is finished, and we are ready to start construction.
This extra step protects the Port's interest in the event unforeseen challenges impact
development of the historic Ship Supply Building.
EXECUTIVE SUMMARY 
As part of efforts to redevelop Fishermen's Terminal, staff is working to develop aMaritime
Innovation Center that will help the region's maritime industry adopt advanced technologies and
stimulate innovative entrepreneurship. Successful innovation centers can help sustain maritime
industries and help modernize operations and key lines of business. This is a significant
opportunity for the region: 
The global "Ocean Economy" is growing. It is valued on a conservative basis by the
Organization for Economic Cooperation and Development (OECD) at $1.5 trillion (2010)
and growing to $3.0 trillion by 2030; 

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 10a                                Page 2 of 10 
Meeting Date: December 8, 2020 
The Seattle region is rich in maritime resources and heritage, but this is under
recognized by the general public and policy makers being overshadowed by high-tech.
The maritime industry is also not particularly innovative; 
Public and private partners are interested in the Maritime Innovation Center as focal
point to help advance: 1) electrification; 2) ship and vessel design innovation; 3) marine
renewables; and 4) seafood product development; 
Promoting knowledge transfer, business incubation, and workforce development are
the biggest needs in terms of addressing maritime innovation challenges (and
opportunities). 
In 2018 the Port worked with the Department of Commerce to secure a state capital
appropriation of $5,000,000 to help fund development of the Maritime Innovation Center. The
Department of Commerce is now prepared to grant $5,000,000 to the Port of Seattle through an
Interagency Agreement. Commerce requires the Port of Seattle's Commission's Authorization of
Construction as a condition for executing the agreement. While there have been multiple years
of pre-work leading up to executing this contract, it is Commerce's preference to execute it by
the end of 2020 in order to move this project forward in a timely manner in 2021. 
The approval of the requested authorization will support the completion of the renovation and
historic restoration of the Port's former Seattle Ship Supply Building to house the approximately
15,000 SF Maritime Innovation Center: a home port business incubator to support the work of
the Maritime Blue Accelerator, in formal partnership with the State of Washington's Department
of Commerce.
With this project the Port is also committing to showcase a sustainable and productive maritime
economy that protects the very fishing industry it serves, in alignment with the Port of Seattle's
Century Agenda goals to support and strengthen the region's economy, while maintaining the
Port's triple bottom line  balancing environmental, financial, and societal goals. 
Prior to coming to the Commission for MInC design funding in April 2019, the Port: 
Completed a feasibility study in 2018 to garner community input on maritime innovation,
identify  potential  facility  services,  operating  options,  space  and  physical  planning
considerations and facility revenue/expense assumptions. 
Created an advisory committee to guide development of maritime innovation center; 
Contracted with DNVGL to update MInC business plan including revised revenue/expense
projections, preferred site/location analyses, and recommended operating benchmarks' 
At this point the Port has advanced the following MInC design work: 
Conducted an Eco-Charette to provide context for a comprehensive evaluation of preferred
sustainability objectives for the various projects within the FT Redevelopment program. 
Completed 30% design and completed an updated project cost estimate based on the 30%
building designs and preferred sustainability options. 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 10a                                Page 3 of 10 
Meeting Date: December 8, 2020 
Presented alternative designs and recommendations to the Energy and Sustainability
Committee at 30% design. 
Determined a series of feasible environmental sustainability objectives that have been
incorporated into the project's construction scope while nearing completion of 60% Design.
JUSTIFICATION 
The Maritime Innovation Center project is designed to help foster innovation and showcase the
region's maritime sector's start-up ecosystems using advanced technologies. The redevelopment
of the former Seattle Ship Supply building, the oldest building in the Port's existing portfolio, is
designed to achieve the highest level of sustainable design and construction through earning a
Living Building Challenge (LBC) certification. 
Pursuing LBC with this project, the Port is committing to showcase a sustainable and productive
maritime economy that protects the very fishing industry it serves, in alignment with the Port of
Seattle's Century Agenda goals to support and strengthen the region's economy, while
maintaining the Port's triple bottom line balancing environmental, financial, and societal goals. 
While there may be additional, up-front capital costs to invest in some of these efficient building
systems, their lifetime efficiencies will reduce operational costs. Supporting resources from the 
Clean Energy Fund will help make it possible to not only invest in a climate-smart building for the
Port, but perhaps more importantly, will represent a shift in the maritime industry and show
other ports what is possible now.
By taking this action, the Port Commission is committing to complete the construction of the
Maritime Innovation Center, and formally entering a financial partnership with the Washington
State Department of Commerce, without allocating new resources at this time. Staff will return
to the Commission once the project is fully designed, and estimates refined to factor more exact
economic condition information into costs, to request funds to construct.
There are several strategic advantages to accepting additional source of capital support in the
form of a State grant: 
Continue a successful collaboration with the State of Washington's Commerce Division to
create the Maritime Innovation Center in the former Ship Supply Building. 
Fully realize the potential of the Port's investment in the Maritime Blue Accelerator by
the Port's Economic Development Division, the goal of which is to increase the level of
support to innovative start-ups in the Maritime sector for years to come.
Contribute to the Port of Seattle'sCentury Agenda in supporting and strengthening the
region's economy, while maintaining the Port's triple bottom line  balancing
environmental, financial, and societal goals. 
Support the recovery of the maritime sector as we move out of the economic crisis
brought on by COVID-19 global pandemic. 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 10a                                Page 4 of 10 
Meeting Date: December 8, 2020 
DETAILS 
Scope of Work 
The Port of Seattle is developing a business incubator at Fishermen's Terminal that can support
and drive innovation within the maritime sector. They have chosen the 100+ year old Seattle Ship
Supply Building for the new home for this incubator, transforming it into a resilient, sustainable
facility that can support both entrepreneurs and established companies for the next 100 years.
Fishermen's Terminal is in one of the few remaining industrial areas within the city of Seattle at
Ballard-Interbay, directly west of the Ballard Bridge and east of the Hiram M. Chittenden Locks
along the Lake Washington Ship Canal. The North Pacific commercial fishing fleet operates out of
the freshwater terminal. 
Built in 1918, the Seattle Ship Supply Building (Maritime Innovation Center) is one of the oldest
structures on the Fishermen's Terminal site. The originalbuilding's heavy timber structure is a
classical basilica form with a central two-story nave and gable roof, flanked by two side shed
structures. At over 45 FT at the top of the gable, Seattle Ship Supply is the tallest existing building
on the Fishermen's Terminal site and is prominently visible from the Ballard Bridge. The existing
building suffers from years of ad hoc modifications and needs substantial improvements to meet
current building codes. 
The Port recognizes the potential to honor the history of Fishermen's Terminal by restoring and
enhancing the original structure and providing spaces that support the next generation
inventions that drive the competitiveness of Washington State's Blue Economy. The building will
provide approximately 14,000 SF of light industrial spaces, meeting rooms, classrooms and event
space that will bring together leaders from education, industry, and government to address both
challenges and opportunities within the maritime cluster. The facility will provide classes,
technical assistance, and research and development that ultimately helps the industry innovate
and sustain its competitive advantage. With the goal of being "the greenest and most energyefficient
port in North America" the Port of Seattle has set ambitious but achievable targets in
energy efficiency, stormwater management and emissions reduction. To meet these goals while
setting a new standard of environmentally sustainable development for ports around the world,
Fishermen's Terminal is pursuing the world's most rigorous green building certification  The
Living Building Challenge. 
A holistic and performance-based rating system, the LBC requires projects create regenerative
buildings that address site, water, energy, materials and even equity related challenges.
Certification is only awarded once a building has proven its net positive energy and water
performance after a year's worth of building operations.
Below are just some of sustainable features of The Fishermen's Terminal project. 
To achieve net positive energy and reduce emissions: 
On-site photovoltaic energy production 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 10a                                Page 5 of 10 
Meeting Date: December 8, 2020 
No combustion, all-electric building operation to support greenhouse gas reduction 
Battery backup system to add resiliency for facility operations 
Electric vehicle charging stations, bike parking and shower facilities 
To demonstrate the commitment to restoring water quality and improving aquatic life on
industrial property: 
On-site stormwater treatment and detention 
Rainwater catchment for irrigation, toilet flushing and potable water use 
On-site grey water and black water treatment 
To improve the health and wellbeing of our community: 
Daylighting and natural ventilation to reduce energy demand and provide a healthier
interior environment 
Reduced chemicals of concern 
Biophilic design that incorporates strategies to enhance the human/nature connection
and reinforces the connection to place 
Community education and outreach 
Urban agriculture 
To reduce emissions and build toward the circular economy 
Reclaimed and FSC-certified wood Regional materials 
Landfill waste diversion 
Equitable and diverse workforce 
Tenancy 
The Maritime Innovation Center is proposed to be tenanted by the Maritime Blue Accelerator
project and other relatively small anchor tenants not yet identified.  The master tenant shall run
the Maritime Innovation Center as a business incubator; complete with services and support for
an ongoing set of cohorts of maritime focused enterprises. Subtenants may also be allowed
under the master tenant contract. Selection of the master tenant will be timed in co-ordination
with the construction timetable for the Maritime Innovation Center such that occupancy can
begin with the issuance of an Occupancy Permit by the City of Seattle. 
Diversity in Contracting 
The LBC is comprised of seven performance areas, or "Petals": Materials, Site, Water, Energy,
Health, Equity, and Beauty. The LBC now has ten Core Imperatives that address the fundamental
tenets of each Petal; all the Core Imperatives are required for Petal Certification. Inclusion is a
new imperative addressing diversity in hiring and access to training compliance. This establishes 


Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 10a                                Page 6 of 10 
Meeting Date: December 8, 2020 
the requirement to include diverse stakeholders from vulnerable or disadvantaged populations
in the design, construction, operations and maintenance phases at the following levels: 
20% of design contract and/or construction contracts, and 10% of maintenance contracts
must be withJUSTorganizations that meet required levels for Diversity category, or are
registered  Minority,  Women,  or  Disadvantaged  Business  Enterprises  (MWDBE)
organizations, or international equivalent. 
Workforce  development/training/community  benefits  agreements,  registered
apprentice programs, and similar programs are employed for 10% of the General
Contractor's project contracts and/or maintenance contracts. 
This imperative may be also satisfied through a donation to appropriate groups that meet the
intent. 
Meeting this imperative supports the Port of Seattle's goal to triple the number of WMBE firms
that contract with the Port and increase the percentage of dollars spent on WMBE contracts to
15 percent within 5 years of program implementation of the Diversity in Contracting Program. 
Community Outreach and Communications 
Initial community outreach and engagement around the Maritime Innovation Center and the 
Gateway Building unfolded during the Port's Fishermen's Terminal Master Planning processin
2016 and 2017. Staff hosted multiple planning sessions, open houses and stakeholder meetings
as part of developing new plans for FT. During the process, stakeholders cited a need for light
industrial facilities with smaller spaces for maritime manufacturers and suppliers. Several
participants also suggested that FT develop space for meeting rooms/conference center. 
Extensive outreach and engagement also supported the Maritime Innovation Center planning
project (2016 and 2017): 
Hosted a Strength, Weakness, Opportunities and Threats (SWOT) workshop with 25
maritime stakeholders 
Developed on online survey that solicited input from 150+ stakeholders 
Hosted outreach meetings with partners in Anacortes and Port Hadlock 
Interviewed 35 Maritime stakeholders (28 distinct organizations) 
Facilitated a design eco-charrette focused on adaptive reuse of the Port's Ship Supply
building 
As the Maritime Innovation Center plan was completed, the state's Maritime Blue initiative
started. It generated significant outreach and engagement in 2018 and the Maritime Innovation
Center was a central part of the strategy they shared with hundreds of maritime and community
stakeholders. 


Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 10a                                Page 7 of 10 
Meeting Date: December 8, 2020 
Schedule 
Activity 
Commission design authorization (initial FT      2016 Quarter 4 
Development design) 
Shoreline and Building Permits from SDCI        2021 Quarter 4 
Commission construction authorization          2021 Quarter 4 
Construction start                                2022 Quarter 3 
In-use date                                       2023 Quarter 4 
Cost Breakdown                                      This Request          Total Project 
Design/Permitting                                                $0            $2,150,000 
Construction                                                      $0           $13,850,000 
Total                                                                    $0            $16,000,000 
SUSTAINABLE EVALUATION FRAMEWORK 
The FT Development project was identified as a priority pilot project for the Sustainable
Evaluation Framework. Miller Hull Partnership was hired to serve as designer and sustainability
facilitator. Three meetings were held in August and September between consultants and the Port
of Seattle project staff to create a project vision and identify opportunities. An eco-charette was
held on October 10, 2019 with various representatives from across the Port to identify preferred
project goals, targets, and priorities. The identified goals and strategies through the charette
were innovation, resilience, jobs/workforce, legacy/future, process, water, energy, carbon, and 
health/materials. 
Project goals and strategies were incorporated into design alternatives and evaluated further.
The sustainable design goals, alternatives, and recommendations were presented to project
Sponsors and to the Energy and Sustainability Committee on June 16th. Based on the
recommended design strategies, the Maritime Innovation Project is targeting LBC Certification. 
The project team is moving forward with refining design and costs. Further design decisions will
be incorporated into a final "Sustainable Design Strategy" for the Maritime Innovation Center
will be provided to Commission before the construction funding authorization. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do nothing: pass on Authorization for Construction and associated grant and
execution of the Washington State Department of Commerce Clean Energy Fund Interagency
Agreement. 
Cost Implications: 
Loss of $5,000,000 State funding towards completion of Maritime Innovation Center project. 
Pros: 
None. 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 10a                                Page 8 of 10 
Meeting Date: December 8, 2020 
Cons: 
(1) Jeopardizes financial partnership with the State of Washington, for regional innovation
initiative and achieve Port objectives of advancing maritime industry. 
This is NOT the recommended alternative. 
Alternative 2  Postpone Authorization for Construction to when Design and Permitting are close
to completion (est. 2021 Quarter 4). 
Cost Implications: 
Loss of $5,000,000 State funding towards completion of Maritime Innovation Center project. 
Pros: 
(1) Commission is not committing to fund the project in the future without final permits or
final cost estimates. 
Cons: 
(2) Time-sensitivity expressed by Commerce suggests uncertainty on future availability of
the funds if the agreement is not executed by the end of 2020. 
This is NOT the recommended alternative. 
Alternative 3  Accept the Washington State Department of Commerce Clean Energy Fund grant.
Approve construction completion for proposed Maritime Innovation Center. 
Cost Implications: 
Receiving contribution in the amount of $5,000,000 towards the total capital project costs
reduces the Port's total project costs for completing the Maritime Innovation Center. 
Pros: 
Significant monetary contribution to the completion of the project and achievement of the
following: 
(1) Support the recovery of the maritime sector as we move out of the economic crisis
brought on by COVID-19 global pandemic. 
(2) Retain Port capital for other priority projects and financial initiatives. 
(3) Redevelopment of existing vacant and dilapidated facility areas. 
(4) Honor the history of Fishermen's Terminal by restoring and enhancing the original
structure and providing spaces that support the next generation inventions that drive the
competitiveness of Washington State's Blue Economy. 
(5) Implement FT Long-Term Strategic Plan objectives of supporting fishing and maritime
clusters as well as improving long-term financial viability of FT. 
Cons: 
(1) Commission is committing to fund the project in the future, without final permits or final
costs. 
This is the recommended alternative. 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 10a                                Page 9 of 10 
Meeting Date: December 8, 2020 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary                  Capital     Expense           Total 
COST ESTIMATE 
Previous estimate (15% design level estimate)      $10,500,000           $0     $10,500,000 
Current change                                    $5,500,000           $0      $5,500,000 
Revised estimate (30% design level estimate)       $16,000,000           $0     $16,000,000 
AUTHORIZATION 
Previous authorizations                              $2,150,000           $0      $2,150,000 
Current request for authorization                             $0           $0               $0 
Total authorizations, including this request           $2,150,000           $0      $2,150,000 
Washington State Department of Commerce's      $5,000,000          $0     $5,000,000 
Funding (this authorization) 
Remaining amount to be authorized              $13,850,000          $0    $13,850,000 
Annual Budget Status and Source of Funds 
The project has been included in the approved 2021-2025 CIP with a total project cost of
$16,000,000 and assumes a $5,000,000 contribution from WA Department of Commerce.
The Port-funded portion of this project will be funded by the Tax Levy. 
Predesign Financial Analysis and Summary 
Project cost for analysis              $11,000,000 (assumes $5 million WA State contribution) 
Business Unit (BU)                  Maritime Portfolio Management 
Effect on business performance    The property is expected to contribute approximately
(NOI after depreciation)             $180K to annual NOI before deprecation. The project will
increase annual depreciation expense by approximately
$220K per year. 
IRR/NPV (if relevant)                NPV: ($7.7M) 
IRR: 1.7% 
CPE Impact                       N/A 






Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 10a                               Page 10 of 10 
Meeting Date: December 8, 2020 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
May 14, 2019  Commission authorized $1,850,000 design funding and an amendment to the
Fishermen's Terminal Phased DesignServices contract, with Miller Hull Partnership LLP, for
$1,000,000 for final planning, design, and permitting for the Maritime Innovation Center. 
January 8, 2019  Commission received a briefing regarding Maritime Blue Plan and the Maritime
Innovation Center. 
December 13, 2016 Commission authorized an initial $3,000,000 for the Fishermen's Terminal
Redevelopment program planning and design; the total preliminarily estimated design cost was
$7,000,000. 

May 17, 2016 - Commission received a briefing on the planning strategies comprising the
Fishermen's Terminal Long-Term Strategic Plan. 
October 27, 2015 - Commission received a briefing about the progress of the stakeholder
outreach program for the Fishermen's Terminal Long-Term Strategic Plan. 
August 11, 2015 - Commission received a briefing on the proposed scope and goals in advance of
the launch of the planning process. 









Template revised June 27, 2019 (Diversity in Contracting).