10c Order 2021-02
Item Number: 10c Order Meeting Date: January 12, 2021 1 ORDER 2021-02: 2 AN ORDER OF THE PORT OF SEATTLE COMMISSION 3 4 To require the Executive Director to continue the indefinite 5 postponement of the expenditure of funds for the design or 6 construction of a cruise terminal on Terminal 46 until a 7 reassessment of the industry is delivered to Commission, 8 and other requirements before construction is authorized. 9 10 PROPOSED 11 JANUARY 12, 2021 12 13 INTRODUCTION 14 15 Cruise operations at the Port of Seattle provide significant benefits to the local economy, 16 reaching industries far beyond the waterfront. Ships homeported in Seattle are provisioned by 17 local providers and strengthen our network of maritime and industrial businesses. With the onset 18 of the COVID-19 pandemic, cruise operations around the world came to a halt. Though there is 19 recent optimism with the lifting of the Center for Disease Control ban on cruises in U.S. waters, 20 the future is not certain. 21 22 The implementation of stringent new safety measures and the upcoming delivery of multiple 23 COVID-19 vaccines provide a path forward. However, it is unclear when the industry will recover 24 and how customers will react to the resumption of cruise, and there is no certainty of a recovery 25 or return to a "normal" cruise season in 2021. It is expected the existing Port of Seattle cruise 26 terminals are sufficient to handle the anticipated recovery of cruise on our waterfront for the 27 near future. 28 29 The Port is committed to maintaining Terminal 46 to support maritime use. The Port of Seattle 30 Commission supports the Executive Director's initial postponement in mid-2020 of investment 31 on the new cruise terminal proposed on the 29 acres of Terminal 46 that are managed by the 32 Port of Seattle under an Interlocal Agreement with the Northwest Seaport Alliance. This Order 33 directs the Executive Director to continue the indefinite postponement of all design and capital 34 spending on a proposed new cruise terminal, unless otherwise directed by the Commission, and 35 to work with the Northwest Seaport Alliance to explore with maximum flexibility maritime uses 36 for Terminal 46. 37 38 TEXT OF THE ORDER 39 40 The Commission hereby directs the Executive Director to continue the indefinite postponement 41 of design and capital investment on a proposed new cruise terminal on the 29 acres of Terminal 42 46 that are managed by the Port of Seattle under an Interlocal Agreement with the Northwest 43 Seaport Alliance. The Executive Director shall also demonstrate clear coordination with the 44 Northwest Seaport Alliance to provide maximum flexibility on future uses for Terminal 46. Order 2021-02 Indefinite Postponement of Cruise at Terminal 46 Page 1 of 2 45 46 Prior to Commission authorization of design of a new cruise terminal, staff shall provide the 47 Commission with an updated assessment of the impact of the COVID-19 pandemic on the cruise 48 industry and a reevaluation of the proposed project. Additionally, prior to Commission 49 authorization of construction of a new cruise terminal, staff shall provide to Commission an 50 assessment that includes, at a minimum, project cost estimates, return on investment and 51 projected market demand. Order 2021-02 Indefinite Postponement of Cruise at Terminal 46 Page 2 of 2
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