8g. Memo T91 Uplands Design Authorization

COMMISSION 
AGENDA MEMORANDUM                        Item No.          8g 
ACTION ITEM                            Date of Meeting      March 23, 2021 
DATE:     February 22, 2021 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Dave McFadden, Managing Director Economic Development 
Kyra Lise, Director Real Estate Development 
Elena Franks, Capital Project Manager 
SUBJECT:  T91 Uplands Design Authorization (CIP #C800158) 
Amount of this request:                            $ 0 
Total estimated project cost:              $ 49,000,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to advertise and execute a service
agreement for professional design services for all project elements and improvements necessary
to support the Port's development of the Terminal 91 (T91) Uplands area located north of the
Magnolia Bridge. No request for funding is associated with this authorization. 
EXECUTIVE SUMMARY 
The Port's Economic Development Division plans to constructlightindustrial building 
space (storage, warehouse, manufacturing) within the northeast portion of T91 to support
maritime manufacturers and fishing industry suppliers in the Ballard Interbay Manufacturing
Industrial Center (BINMIC). Major project components of the T91 Uplands development include
the following: Phase I, Phase II, and Offsite. 
Phase I premises: approximately 6 acres in size, located at the northeast portion of T91,
will consist of developing approximately 100,000SF of industrial building space with
minimal facility infrastructure improvements by the Port. 
Phase II premises: Inthe futureyears, up toapproximately 9 acres in the Phase II area will
involve the construction of up to 300,000SF of additional industrial building space along
with more extensive T91 utility infrastructure improvements. 
Off-site: Includes City of Seattle right-of-way and properties not owned by the Port, with
respect  to  any street  improvements to  be  developed in  coordination  with  the
requirements of the City of Seattle and other jurisdictions. 

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 8g                                   Page 2 of 9 
Meeting Date: March 23, 2021 

Phase I and Phase II premises will be covered under the same major phased development
planning effort and associated land use permit. 
The T91 Uplands Development Project received design funding approval on February 26, 2019.
Since then it started design development, recently achieving 10 percent design. On January 26,
2021, the Port terminated for convenience the service agreement P-00319789 for design services
originally executed on January 1, 2020, and is thus seeking to procure new professional design
services for all project elements necessary to support the Port's development of the T91 Uplands
Development from current project phase onwards. 
JUSTIFICATION 
The T91 Uplands Development addresses the shortage of light industrial property in
consideration of the current market demand and in alignment with Seattle's Industrial Maritime
Strategy and Century Agenda Goals. It aims to preserve and enhance industrial land that
contributes to local economic impact of maritime-focused operations, and diversify uses and
assets, while balancing environmental, financial, and community stewardship goals of the Port
of Seattle. 
The development project also supports the following Economic Development Division and
Maritime Division goals, through a set of guiding principles developed in conjunction with a Portconducted
stakeholder outreach program, and Port project team effort: 
(1) Create New Economic Impact on Port Land 
Continue to strengthen and grow the economic value of the maritime cluster, including
the number of local jobs and business revenues. 
a.   Anchor the maritime industrial workforce in Seattle by fulfilling tenant mix goals 
b.   Meet square feet developed, jobs and associated wage rate goals. 
c.   Meet target occupancy rate, and asset utilization. 
d.   Create flexible spaces to accommodate multiple lines of business and a range of
users/tenants. 
e.   Meet revenue goals for long term investment. 
f.   Add value to the overall equity component of the land; increase appreciation of
Port land. 
(2) Actualize a Port Definition of Flexible & Sustainable Industrial Development 
Align Seattle's Industrial and Maritime Strategy with key climate and environmental
protection   goals, securing integration   with   social   and   economic   dimensions
of sustainability. 
Financial Sustainability: 
a.   Develop  a  creative,  cost-effective  solution within  the  given  project  budget.
Achieve good value over the life cycle of the asset. 

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

COMMISSION AGENDA  Action Item No. 8g                                   Page 3 of 9 
Meeting Date: March 23, 2021 
b.   Find a balance between cost and environmental benefits that reconciles desired
tenant profile with a sustainable design approach.
c.   Create new revenue and new jobs for industries that have traditionally been tied
to Terminal 91. 
d.   Ground design choices in economic sustainability and market influence data;
identify and target preferred tenants' need and achieve a product that is
affordable.
Innovative Environmentally Conscious Practices:
e.   Achieve energy savings and water consumption reduction. Consider efficiency vs.
conservation approaches.
f.   Use construction materials and methods that minimize harm to the surrounding
ecosystem and reduce carbon footprint. 
g.   Design resilient facilities that are able to retain structure and functions while
adjusting to environmental (e.g. climate adaption) and socio-economic changes.
h.   Prioritize re-use of existing Port assets in design. 
Operational Improvement: 
i.    Leverage opportunities to evaluate a cluster of assets, addressing holistically other
activities and operations across the terminal with a campus mindset. 
j.    Explore cost   savings   opportunities   towards operational   and   maintenance
efficiency.
k.   Develop process for data collection and develop data story and metrics for how
the Port approaches large, phased projects.
Users Health, Safety, Welfare: 
l.    Protect the health, safety, and welfare of occupants and users through solutions,
methods and materials that ensure a healthy built environment and eliminate or
reduce hazards in the workplace.
m.  Integrate health safety and welfare considerations in all phases of the buildings'
life   cycle:   planning,   design,   construction,   operations   and   maintenance,
renovation, and final disposal. 
(3) Champion Diversity and Equity 
Promote equitable access to information and new jobs through and inclusive industrial
economy and ladders of economic opportunity. 
a.   Target WMBE tenants.
b.   Meet or exceed the Port's diversity in contracting goals in the procurement of
Design and Construction services. 
c.   Ensure broad inclusion during public outreach. 
(4) Improve the Movement of People and Goods to and Within Industrial Zones 
a.   Promote environmentally sustainable transportation modes. 
b.   Increase safety for all travel modes. 
c.   Leverage wider plans  for changes  to transportation  and  circulation systems in
the vicinity to improve access to/from the site. 

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

COMMISSION AGENDA  Action Item No. 8g                                   Page 4 of 9 
Meeting Date: March 23, 2021 
(5) Foster Community Stewardship and Cultural Benefits 
a.   Build new confidence in Port's ability to pursue industrial development. 
b.   Seek opportunities to leverage and develop partnerships in then
industrial maritime sector. 
c.   Demonstrate   the   Port's   continued   commitment   to   engaging   nearport
communities in   a transparent   manner, with  timely  information   and
opportunities to provide input.
d.   Include and strive for functional integration of art (Port's 1% Art Program) into the
designed product. 
Major Phased Development Plan 
The Port will design and request permitting for a Major Phased Development Plan (MPD) through
the Seattle Department of Construction and Inspection (SDCI). An MPD is a unique permitting
vehicle under the Seattle Land Use code, which allows for one land use permit to cover multiple
development projects on one large site phased over time. A major phased development
authorizes construction up to 15 years after the permit is issued.
The MPD provides flexibility for the Port in planning, design, and construction. The Port will work
in partnership with the City of Seattle and neighboring community members on completing a
comprehensive environmental review for this project. Similar recent MPD developments include
the Expedia campus in Interbay, the Bill and Melinda Gates Foundation headquarters, and
proposed development at the University Village.
Diversity in Contracting 
The Port is considering issuing a new project-specific contract for professional design services
related to continue progress towards design and permitting and complete the scope of work
described below. 
In  association  with  this  effort,  the  project  manager  will  work  with  the Diversity  in
Contracting Department to  determine potential women  and  minority business participation
opportunities and will set WMBE goals to align with the Port's aspiration to 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. The applicability of a Project Labor
Agreement will be determined as well, in coordination with Labor Relations. 
Community Outreach, Communication, and Marketing 
In addition to environmental review, a robust communications and outreach plan will keep
stakeholders informed about the schedule, design scope and impacts of the proposed
development. Outreach will provide  opportunities  for  a  wide  range  of  stakeholders
to offer input including residents in neighboring communities, current Terminal 91 tenants,
business and maritime industry organizations, and the Port's Terminal 91 Neighbors Advisory
Committee (NAC). In addition, liaison work will continue with transportation planning teams

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

COMMISSION AGENDA  Action Item No. 8g                                   Page 5 of 9 
Meeting Date: March 23, 2021 
from the City of Seattle, METRO Transit and Sound Transit to ensure awareness and coordination
between projects. 
The outreach effort will utilize a number of communication strategies and tools. The project
team will establish an online open house and project email address to ensure continued dialogue
throughout the project. Updates also will be provided via media outreach and open houses,
along with project updates at industry, business and community meetings. 
Additionally, the Port project team will provide a workplan for sales process audit and other Sales
& Marketing efforts geared at fulfilling the lease strategy goals to attract the ideal tenant mix. 
DETAILS 
All professional design services for all project elements/improvements necessary to support the
T91 Uplands Development are described below.
Scope of Work 
The scope of the T91 Uplands Development project includes: 
(1) Design and MDP permitting of Phase I and Phase IIpremises 
(2) Design, permitting and Construction of Phase Ipremises 
Phase I premises' improvements are anticipated to include, but not limited to, the following: 
(1) Removal and replacement of associated on-site utility systems 
(2) Installation of stormwater treatment system 
(3) Removal and replacement of on-site roadway and parking lot pavement 
(4) Construction of new building(s) totaling 100,000 SF 
(5) Upgrading of facility signage, lighting, and landscaping as required 
(6) Improvements to off-site public streets as, and if,required by the City of Seattle 
(7) Implementation of applicable environmental best management practices 
(8) Obtainment of LEED Core & Shell, Standard Level credential 
Significant progress has  been  made  on  the Terminal  91  Uplands project  since  the  last
authorization. This work guides and supports future work on the project: 
(1) Developed Guiding Principles 
(2) Developed Owner's Project Requirements (OPR) 
(3) Developed draft Sustainable Design Approach 
(4) Started SEPA checklist preparation 
(5) Conducted preliminary meeting with SDCI on traffic analysis assumptions 
(6) Completed draft of Existing Traffic Conditions 
(7) Completed Geotech and Environmental subsurface investigation 
(8) Completed design 10% concepts/layouts 
(9) Risk Analysis planning 

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

COMMISSION AGENDA  Action Item No. 8g                                   Page 6 of 9 
Meeting Date: March 23, 2021 
Schedule 
Activity 
Commission design authorization                    2019 Quarter 1 
Design start                                            2020 Quarter 3 
Commission construction authorization               2023 Quarter 1 
Construction start                                     2023 Quarter 3 
In-use date                                            2024 Quarter 4 
Cost Breakdown                                  This Request      Total Project 
Design                                                       $0        $9,000,000 
Construction                                                 $0       $40,000,000 
Total                                                              $0        $49,000,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do nothing: pass on authorizing the execution of a contract for professional
design services to complete the design and permitting on T91 Uplands 
Cost Implications: Halt spending on approved Major Capital Project. 
Pros: 
(1)   Retain Port capital for other priority projects and financial initiatives
Cons: 
Delay, and possible interruption of the project, leading to: 
(1) Missed opportunity to achieve Port objectives of supporting fishing and maritime clusters
(2) Missed opportunity for improving long-term financial viability of T91
(3) Missed opportunity to add major maritime business tenants at T91
(4) Missed opportunity to add needed light industrial space in the Ballard Interbay area at
T91 
(5) Missed  opportunity  to  replace  existing  aged  storm  sewer  system  with  effective
stormwater management system, including water quality treatment, at T91 in full
compliance with Port and City of Seattle standards 
(6) Missed   opportunity   to   improve   existing   water,   sanitary,   lighting,   electrical,
communications, and traffic related infrastructure at T91 
This is not the recommended alternative. 
Alternative 2  Pass on authorizing the execution of a contract for professional design services
to complete the design and permitting on T91 Uplands in two phases. Develop T91 Uplands on
a more limited building-by-building basis 
Cost Implications: Reduced "economy of scale" cost benefit due to more segmented phasing 
Pros: 

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

COMMISSION AGENDA  Action Item No. 8g                                   Page 7 of 9 
Meeting Date: March 23, 2021 
(1) Creation of multiple building projects will provide additional opportunities for consulting
firms to compete for work 
(2) Construction impact to existing T91 upland tenant business operations may be more
limited at any given time 
(3) The  property  would  support  the  creation  of  hundreds  of  new  jobs  in  the
maritime/manufacturing sector
Cons: 
(1) Loss of value of work planned and performed thus far
(2) Requires major Port investment of funds
(3) Requires an increase in costs due to increased number of consultant procurements and
multiple construction mobilizations 
(4) Requires additional staff time and cost to manage multiple individual permit, design and
construction efforts 
(5) Creates a longer-term, constant, and disruptive construction impact to existing upland
tenant business operations due to multiple construction starts and extended overall
duration 
(6) Requires   consultant   firms   to   spend   more   time   and   money   responding   to
individual project-based contracts and procurements 
(7) Does not allow for a holistic, integrated design and environmental approach
This is not the recommended alternative. 
Alternative 3  Authorize the execution of a contract for professional design services to complete
the design and permitting on T91 Uplands in two phases 
Cost Implications: None at this time; the total project cost estimate is not expected to change
based on this request. The alternative will overall result in greatest cost efficiency due to
combination of reduced Phase I infrastructure investment and "economy of scale" of multiple
buildings being constructed 
Pros: 
Allow progress of project towards completion, achieving the following: 
(1) Meets Port objectives of supporting fishing and maritime clusters 
(2) Improves long-term financial viability of T91 
(3) Adds major maritime business tenants at T91 
(4) Adds needed light industrial space in the Ballard Interbay area at T91 
(5) Provides a flexible city-approved development plan for phased construction over 15
years to meet market demand 
(6) Provides long-term cost savings due to economy of scale derived from larger (more
consolidated) permit, design and construction efforts 
(7) Replaces existing aging storm sewer system with effective stormwater management
system, including water quality treatment, at T91 in full compliance with Port and City
of Seattle standards 

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

COMMISSION AGENDA  Action Item No. 8g                                   Page 8 of 9 
Meeting Date: March 23, 2021 
(8) Improves existing water, sanitary, lighting, electrical, communications, and traffic
related infrastructure at T91 
(9) The  property  would  support  the  creation  of  hundreds  of  new  jobs  in  the
maritime/manufacturing sector 
Cons: 
(1) Requires major Port investment of funds over shorter term 
(2) Requires reduction of existing area available for on-site open storage
(3) Creates temporary construction impacts to existing T91 upland tenant business
operations 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                $39,000,000               $0     $39,000,000 
Current Change                              $10,000,000              $0    $10,000,000 
Revised estimate                               $49,000,000              $0     $49,000,000 
AUTHORIZATION 
Previous authorizations                          $4,300,000              $0      $4,300,000 
Current request for authorization                         $0               $0               $0 
Total authorizations, including this request       $4,300,000               $0      $4,300,000 
Remaining amount to be authorized           $44,700,000             $0    $44,700,000 
Annual Budget Status and Source of Funds 
This project was included in the 2021 Plan of Finance under C800158 T91 Uplands Development
with a total project cost of $48,500,000. 
This project will be funded by the Tax Levy. 
Financial Analysis and Summary 
Project cost for analysis              $49,000,000 
Business Unit (BU)                  EDD Portfolio Management 
Effect on business performance    The new buildings, when complete, will provide
(NOI after depreciation)             incremental leasing revenue. Estimated stabilized net
operating income for the project is to be determined
upon project scope determination. 
IRR/NPV (if relevant)                To be determined upon project scope determination.
CPE Impact                       N/A 

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

COMMISSION AGENDA  Action Item No. 8g                                   Page 9 of 9 
Meeting Date: March 23, 2021 
Future Revenues and Expenses (Total cost of ownership) 
The project improves the long-term financial stability of the Port by creating infrastructure to
support new jobs, generate new revenues, and advance maritime innovation. 
ATTACHMENTS TO THIS REQUEST 
None .
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
February 26, 2019  The Commission authorized the execution of contracts for overall master 
planning, environmental review, permitting, and Phase I Design services in an amount 
not-to-exceed $4,000,000, in support of the Port's development of the T91 Uplands
Development project. 
November 27, 2018  The Commission approved 2019 Capital Budget and Plan of Finance
including T91 Uplands Development project. 
October 25, 2016  The Commission received a briefing about the Real Estate Strategic Plan
including the T91 Uplands Development project. 










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

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