COMMISSION 
AGENDA MEMORANDUM                        Item No.          10f 
ACTION ITEM                            Date of Meeting       August 8, 2023 

DATE:     August 8, 2023 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Dave McFadden, Managing Director, Economic Development 
Kyra Lise, Director of Real Estate Development 
Kelly Purnell, Project Manager, Waterfront Project Management 
SUBJECT:  Fishermen’s Terminal Redevelopment  Program -  Maritime Innovation Center 
(CIP #C801084) and Site Improvements (CIP #C801211)
Amount of this request:             $ 27,415,000 
Total estimated project cost:         $ 32,600,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to advertise, award, and execute a
major works construction contract utilizing a Project Labor Agreement to enable construction of 
a package of improvements to the Fishermen’s Terminal including 1) the renovation of the Ship
Supply Building into the Maritime Innovation Center and 2) a set of public space improvements
to Fishermen’s Terminal which include landscape enhancements, wayfinding signage and
interpretative signage.  Both projects include art projects supported by the Port’s 1% for Art
program.  Request for the Maritime Innovation Center is $25,750,415. Request for the  Site
Improvements is $1,665,000.  Requested funds include funds allocated for the art project
components of both projects representing $320,500. Total request for this action will be
$27,415,000 for a project total authorization of $32,600,000.
EXECUTIVE SUMMARY
Staff is requesting authorization to renovate and transform the historic Seattle Ship Supply
Building into a cutting-edge, Living Building Challenge (LBC) certified Maritime Innovation Center
(MInC). The building will serve as a beacon for innovation within the maritime industry. It will
bring in partners, students and innovators from academia, business, government agencies and
the community together to collaborate around maritime problems and opportunities. The MInC
will ultimately help support maritime industry vitality and sustainability. (It is intended that
Maritime Blue will be the tenant/operator of the MInC under a lease agreement with the Port
that is not part of this authorization. The Port’s Asset Management team is currently negotiating
with Maritime Blue the terms of that lease.)
The second project is a set of public space site improvements including new wayfinding and
monument signage; interpretative signage with newly developed content intended to inform the
Template revised January 10, 2019.

             COMMISSION AGENDA – Action Item No. 10f                                Page 2 of 15 
Meeting Date: August 8, 2023 
public about the history, cultural relevance, and heritage of Fishermen’s Terminal; and new
landscape and public space hardscape improvements intended to enhance the visitor experience
at FT. Each of the two projects include a 1% for Art investment yielding at least three new art
works commissioned by the Port for the facility.
JUSTIFICATION
In 2015, the Port of Seattle Commission directed staff to develop a long-term strategic plan for
Fishermen’s Terminal (FT). The Port subsequently worked with VIA architecture to develop this
plan, which utilized extensive engagement with internal and external stakeholders at FT. The FT
strategic plan, produced in 2016, provided a context for determining a series of planned
investments in the property to meet the key strategic objective outlined in the plan: to “leverage 
the maritime and fishing activities and industries, in alignment with Century Agenda goals, to
prepare the uplands portion of Fishermen’s Terminal for growth.”
Broadly stated, this package of projects and capital investments makes good on strategic 
objectives outlined in the FT Strategic Plan and primes Fishermen’s Terminal for future growth 
with success measured against the following strategic outcomes: 
• Continue to grow the economic value of the fishing and maritime cluster including the
number of local jobs and business revenue. 
• Improve overall financial returns to allow us to fulfill the Port’s commitment to the
industry and taxpayers. 
• Prioritize uses that support the commercial fishing industry, with a focus on anchoring the
North Pacific Fishing fleet. 
• Prioritize development that maximizes utilization of facility assets. 
• Recognize and enhance Fishermen’s Terminal as a living community landmark.
Maritime Innovation Center (MInC) 
As part of efforts to redevelop Fishermen’s Terminal, staff has worked over the past six years 
with the maritime community to develop a Maritime Innovation Center that will:
•    Be a focal point for maritime innovation. 
•    Support investment in Blue Economy start-ups and new technologies. 
•    Offer an incubator and accelerator environment. 
•    Drive equitable economic development. 
•    Support workforce development and maritime career exploration. 
The Center can help the region’s maritime industry adopt advanced technologies and stimulate
innovative entrepreneurship. Staff has visited maritime innovation centers like the Ocean House
in Iceland or Alta Sea at the Port of Los Angeles and seen how these facilities are helping sustain
important fishing and maritime industries. Developing the Port of Seattle MInC can foster similar
impacts. This is a significant opportunity for the region and Washington State: 

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             COMMISSION AGENDA – Action Item No. 10f                                 Page 3 of 15 
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•    The  MInC  can  support  maritime  industry  competitiveness  and  position  it  for  new
opportunities.  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.
•    The Center can tap into our region’s world class entrepreneurial ecosystem and channel
its energy and technologies to benefit the maritime industry.
•    Public and private partners are interested in the MInC as focal point to help advance: 1)
electrification; 2) ship and vessel design innovation; 3) marine renewables; and 4) seafood
product development. 
The MInC also builds upon a successful partnership we have forged with Maritime Blue (MB).
The Port and MB have built a successful maritime accelerator program and are now instituting a
new incubator program at Fishermen’s Terminal. The Port also has a significant partnership with
MB to advance maritime career exploration and development. These key initiatives will continue
to unfold over the next few years, and they can further scale when MB expands operations into
the MInC.
Developing the MInC aligns with and advances the Port’s Century Agenda. Developing a Living
Building Challenge (LBC) certified facility demonstrates the Port’s commitment to be the greenest
and most energy-efficient port in North America. The MInC will also host work and collaborations 
focused on green energy development and sustainability.
The MInC also demonstrates the Port’s commitment to responsibly invest in the economic growth
of the region and all its communities. The facility will promote industrial land use and investment.
It will also support career connected learning, workforce development and women- and minorityowned
business development.
Signage/Landscaping Improvements 
The second project is a set of public space improvements in and around the vicinity of the
Maritime Innovation Center which include wayfinding and site signage, interpretative signage
and landscaping which connects to our goal to become a model for equity, diversity, and inclusion.
This package of improvements enhances the public experience at Fishermen’s Terminal that was
a priority of the FT Strategic Plan. Our design works to  balance our objectives of inviting the
public to explore FT and understand the value of the working waterfront by clearly separating
the public from the operational needs of the Terminal.
Our new interpretative signage content was developed by public historian Sharon Boswell to
work with Native consultant Headwater People and representatives from the Port of Seattle’s
Office of Equity, Diversity, and Inclusion (OEDI). These representatives engaged stakeholders
from various institutions across Seattle whose role is aligned with developing public histories 
(National Nordic Museum, MOHI, Burke Museum) as well as representatives from the local fisher
community to develop the story of FT featuring a wider array of voices, communities, and key
issues that have influenced the history of FT. The new historic content updates   and
contextualizes the facility’s historic role in the region through the eyes and stories of the 
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             COMMISSION AGENDA – Action Item No. 10f                                 Page 4 of 15 
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individuals and communities of FT. Overall, the interpretative signage program is designed to do
the following: 
•    Improve public literacy about the maritime and fishing industries 
•    Integrate Native history and context to the story of FT 
•    Explore the communities who have contributed to the history of FT 
•    Better understand the ecological and industrial context of FT 
•    Provide clear and safe pedestrian navigation of the public on the working waterfront 
•    Increase exposure to the public of retail and dining establishments 
Project Labor Agreement: 
There is a project labor agreement (PLA) for the MInC project. The PLA for this project requires
an apprenticeship of 15% of total labor hours. Of that, 21% will be People of Color, and 12% will
be women. Additionally, this PLA has a priority hire requirement of 20%. 
Diversity in Contracting 
The project has met the 20% of design contracts requirement, and the Project Labor Agreement
(PLA) for this project exceeds the LBC requirement for workforce development. In addition to
meeting the LBC imperative, the Port Diversity in Contracting Department has established a 12%
WMBE goal for the MInC and Public Site Improvements project. 
Sustainability at the MInC 
The Living Building Challenge 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 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 with JUST organizations 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. 


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             COMMISSION AGENDA – Action Item No. 10f                                Page 5 of 15 
Meeting Date: August 8, 2023 
Meeting this imperative supports the Port of Seattle’s aspirational 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. 
DETAILS 
Scope of Work 
Built around 1918, the Seattle Ship Supply Building (Maritime Innovation Center) is one of the
oldest structures on the Fishermen’s Terminal site. The original building’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 feet 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
once renovated will provide approximately 15,700 SF of light industrial spaces, meeting rooms,
and classrooms that will bring together leaders from education, industry, and government to
address both challenges and opportunities within the maritime cluster. 
The following scopes of work will be completed: 
Maritime Innovation Center (MInC):
The MInC will be an incubator space that supports and drives innovation in the maritime sector
at Fishermen’s Terminal in Seattle through collaborative research and enterprise development
support services, operated by Maritime Blue, a non-profit partner of the Port. Once constructed
the MInC will provide light industrial spaces, office, meeting rooms, research and development,
as well as classrooms and collaboration space that will bring together leaders within the maritime
cluster. The alteration of the historic structure will transform the building in many ways with an
all-new exterior envelope, seismic upgrades, building systems, and leading-edge sustainability
features in line with the Port of Seattle’s goal to be the greenest, most energy efficient Port in
North America. 
The following work will be completed: 
• Hazardous materials abatement for lead paint, asbestos, and silica that is so prolific in 
early twentieth century construction will be completed by Port Construction Services in
advance of the general contractor breaking ground.
• Demolition and renovation of the “core and shell” of the building, meaning all existing
siding, roofing, utilities, and internal infrastructure will be removed, while preserving the
bulk of the original timber framing.
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             COMMISSION AGENDA – Action Item No. 10f                                 Page 6 of 15 
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• The building will be jacked and cribbed and temporarily relocated to the adjacent south
parking lot to install a new driven-pile deep foundation with grade beams and pile caps. 
• Renovated and new core and shell including preserving the rare and valuable original old-
growth timber framing, reinforced with modern steel framing. 
• Salvage of existing old-growth timber flooring and some of the existing beams that will
not be used for the framing, will be restored and used for flooring, benches, and other
building aesthetic components. 
Sustainability Details 
With the goal of being “the greenest and most energy-efficient 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. 
•    No combustion, all-electric building operation to support greenhouse gas reduction 
(ground source heat pump). 
•    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. 
•    No “red list” materials will be used – significant reduction in chemicals of concern. 
•    Biophilic design that incorporates strategies to enhance the human/nature connection
and reinforces the connection to place. 
•    Community education and outreach 

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             COMMISSION AGENDA – Action Item No. 10f                                 Page 7 of 15 
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• 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 
Public Site Improvements: 
The Vision for Fishermen’s Terminal included in the FT Strategic Plan is to create a community
landmark that supports the maritime industry by welcoming the general public to the industrial
working waterfront. The general public site improvements planned are aimed at supporting such
vision by improving safety for both visitors and industry while creating engaging and educational
storytelling and wayfinding signage for the general public that describes the legacy of FT and the
importance of the maritime industry in the region.
The FT Site Improvements include: 
• Providing clarity for vehicular, bike and pedestrian routes and access with improved
wayfinding signage and branding 
• Electrical lighting upgrades 
• Low maintenance landscaping 
• Interpretive signage 
• Provisions for parking and loading to accommodate future needs 
•    These site improvements will link the remodeled MInC to the central commercial core of
Fishermen’s Terminal primarily comprised of the Fishermen’s Center Building (C-15
Building), and the parking areas in between them. 
1% for Art 
Two contracts have been executed to commission original works of Art for the MInC. 
• Ty Juvinel– A local Coast Salish carver, Cultural preservationist, and artist. Ty has
submitted a proposal for a 12-foot laser cut aluminum sculpture depicting Coast Salish
traditional purse seining. 
• Shogo Ota – A Seattle based graphic designer and artist specializing in murals, event
posters and custom illustrations. Shogo has submitted a proposal for a large-scale mural
depicting salmon migration that will be located on the west side  of Net Shed 3,
immediately adjacent to the MInC. 
An RFQ for the Public Site Improvements Art has been developed. This will be an artist
invitational, and the finalist will be selected by a diverse panel of Port staff and Seattle art
community members. 


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

             COMMISSION AGENDA – Action Item No. 10f                                 Page 8 of 15 
Meeting Date: August 8, 2023 
Tenancy 
The MInC is proposed to be tenanted by the Maritime Blue Accelerator project and other
relatively small anchor tenants associated with Maritime Blues program not yet identified. The
master tenant shall run the MInC 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 coordination
with the construction timetable for the MInC such that occupancy can begin with the issuance of
an Occupancy Permit by the City of Seattle. 
Risk Management 
Fishermen’s Terminal, like much of Port-owned waterfront properties, was built on poor quality
fill soils. The soil conditions at the location of the Seattle Ship Supply building will require a new,
deep driven-pile foundation.  Additionally, current land use code prohibits building “new”
buildings within the shoreline.  The project is within the shoreline. The building cannot be
completely disassembled to install the new foundation and then reassembled as to do so runs
the risk of being  considered “new” build per code. Therefore, it is likely that the building will
need to be jacked and cribbed, and temporarily relocated in its entirety into the adjacent south
parking lot, a significant risk which must be carefully approached to ensure success. 
These conditions, along with the inherent complexity of renovating a 100+ year-old timber frame
building, and incorporating all the diverse FT stakeholder inputs, carries more risk than a typical
new construction building project. To address the various risks associated with this project, a
robust risk analysis model was developed by a project controls and risk management consultant
to identify, quantify, and plan for risk management and mitigation before, during and after
construction. Risk analysis workshops were held to engage all the project subject matter experts
to review the potential risk probabilities for a suite of identified issues; the first workshop was
held during design, and the second workshop focused on construction. The results of the risk
model inform the team on how the realization of these risks, and potential opportunities, could
affect the project from a cost and schedule perspective. 
The results of the first risk assessment at 60% design led the project team to conduct the
following additional site validation studies. 
• Geotechnical environmental site analysis 
• Soil conductivity testing for ground source heat pump wells 
• Foundation alternatives study 
• Constructability study (construction means and methods) 
The second risk assessment at 100% design has informed the project team largely on the
construction risks. 


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             COMMISSION AGENDA – Action Item No. 10f                                 Page 9 of 15 
Meeting Date: August 8, 2023 
In addition to the risk workshops, two contractor information sessions, including one-on-one
sessions with prospective general contractors, were held in Q1 2022 and Q2 2023 to solicit
feedback on the project documents and expected construction approach options. The comments
that were received reinforced known risks, and identified additional risks that were then added
to the risk model. 
Overall, the 60% risk assessment identified sixty (60) risks. Eleven (11) more were added during
the 100% risk assessment; however, due to the Port team’s due diligence to mitigate many of the
risks between 60% and 100% design, twenty-two (22) risks were either closed, absorbed into the
estimate, or sufficiently managed during the 100% risk assessment, bringing the active risks to
forty-nine (49).
The top ten (10) remaining risks are listed below in order of probability and impact. Many of
these risks have now been further addressed through additional mitigation measures to either
accept the risk or incorporate them into the overall project estimate. Some of the most critical
mitigation measures are described below. 
1.  General Contactor’s Living Building Challenge experience 
2.  Safety and Security – theft and break-ins 
3.  Living Building Challenge requirements for materials 
4.  Permit timing 
5. Jacking and cribbing the building 
6.  Photovoltaic system adequacy 
7.  Tie-in to existing equipment/systems 
8. Unforeseen hazardous materials in building 
9.  Lift station controls mod schedule conflict 
10. Bids significantly over estimate 
While switching to an alternate project delivery (General Contractor/Contract Management or
GC/CM) was considered when the project reached 60%, the impact to the schedule was deemed
too great and the project continued with a Design-Bid-Build delivery. However, significant risks
remain due to the complexity of the project, including poor soils, need to temporarily relocate
the building, and general unknown site conditions despite the many studies that have been
conducted. The selected delivery method did not allow for a contractor to be involved in details
of the development of the project construction means and methods and site validation efforts,
creating gaps in information that would otherwise assuage a contractor’s risk tolerance. To
mitigate these risks, the project team has determined that 10% of additional major construction
contingency funds should be carried above and beyond the typical 15%. 



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

             COMMISSION AGENDA – Action Item No. 10f                                Page 10 of 15 
Meeting Date: August 8, 2023 

In addition, allowances (funding for specific scopes of work identified in the bid form at a predetermined
dollar value) will be set up so that the prospective bidders know there is money
available to verify known-unknown risks. These allowances are meant to minimize bid inflation
because of unknown site issues. These funds may or may not be fully utilized pending what is
found during the construction process. Unused funds will revert to the Port. 
Lastly, enhanced construction site security was identified as need to mitigate a significant, and
highly probable risk of theft and break-ins. The Port has an on-call security guard contract that
will be utilized to provide a dedicated security guard on-site during all non-construction hours.
The cost for this has been absorbed into the construction estimate. 
In addition to the risk mitigation measures described above, the Port has completed the following
scopes of work since last coming before the Commission in 2022 for the MInC: 
• Completed a structural redesign necessary to correct a design error found during the first
cycle of construction permit review. 
• Completed 100% design and completed an updated project cost estimate based on the
100% building designs and preferred sustainability options. 
• Completed a draft content framework for the interpretive signage program with
collaboration from a full panel of internal and external stakeholder reviewers. 
• Completed the conceptual design for two commissioned art installations funded by 1%
for Art. 
• Completed second risk assessment workshop at 100% design that built upon the 60%
design risk assessment workshop completed in 2021. 
Schedule 




Activity: 
Commission initial design authorization                  2016 Q4 
Design start                                               2017 Q1 
Commission additional design funding authorizations    2019 Q1, 2019 Q2,
2021 Q2, 2022 Q4 
Commission authorization for conditional construction  2020 Q4 
for execution of $4.87M Dept. or Commerce grant 
Commission construction authorization                 2023 Q3 
Construction start                                        2024 Q2 
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             COMMISSION AGENDA – Action Item No. 10f                               Page 11 of 15 
Meeting Date: August 8, 2023 
In-use date                                               2025 Q4 
Cost Breakdown                                     This Request           Total Project 
Design (including 1% for Art) 
MInC                                                $0            $3,650,000 
Public Site Improvements                                   $0              $1,535,000 
Construction (including 1% for Art) 
MInC*                                  $25,750,000          $25,750,000 
Public Site Improvements                           $1,665,000              $1,665,000 
Total                                                      $27,415,0000            $ 32,600,0000 
*does not account for additional $5M Dept. of Commerce state grant #19-92201-007 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1 – Do nothing: pass on Authorization for Construction 
Cost Implications:
Loss of $5,000,000 Washington State Department of Commerce grant  funding towards
completion of Maritime Innovation Center project. Loss of $5,000,000 sunk costs from design
and permitting. 
Pros:
(1)   Retains Port capital for other priority projects and financial initiatives. 
(2)   Avoids temporary construction impacts to existing fishing and upland tenant business
operations. 
Cons:
(1)   Missed opportunity to implement FT Long-Term Strategic Plan objectives of supporting
fishing and maritime clusters as the sector begins to recover from the recession caused
by the COVID-19 pandemic.
(2)   Loss of $5 million grant funds from Washington State Department of Commerce
towards the construction of the MInC. 
(3)   Risk of not being able to extend the Master Use Permit for another year, resulting in
significant delays and rework to re-permit the project. 
(4)   Missed opportunity for partnering with Washington Maritime Blue in creating FT based
hub for regional innovation initiative and achieve Port objectives of advancing maritime
industry through innovation and modernization.
(5)   Missed  opportunity  to enhance public  awareness  and enjoyment  of Fishermen’s
Terminal. 
This is NOT the recommended alternative.
Alternative 2 – Postpone authorization for construction to a later date.
Pros:
(1)   Retains Port capital for other priority projects and financial initiatives.

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

             COMMISSION AGENDA – Action Item No. 10f                               Page 12 of 15 
Meeting Date: August 8, 2023 
(2)   Enables factoring of more exact economic condition information into project approval
decision.
(3)   Delays temporary construction impacts to existing fishing and upland tenant business
operations.
Cons:
(1)   Risk of not being able to extend the Master Use Permit for another year, resulting in
significant delays and rework to re-permit the project. 
(2)   Likely higher cost of completing construction bid documents due to delay.
(3)   Potential missed opportunity to capitalize on market and implement FT Long-Term
Strategic Plan objectives of supporting fishing and maritime clusters as the sector begins
to recover from the recession caused by the COVID-19 pandemic.
(4)   Likely loss of $5 million grant funds from Washington State Department of Commerce
towards the construction of the MInC.
(5)   Likely loss of Shoreline Substantial Development permit due to expiration and inability
to extend per Washington Administrative Code requirements. 
(6)   Potential missed opportunity for partnering with Washington Maritime Blue in creating
FT based hub for regional innovation initiative and achieve Port objectives of advancing
maritime industry through innovation and modernization.
(7)   Potential missed opportunity to capitalize on market and to enhance public awareness
and enjoyment of Fishermen’s Terminal. 
This is not the recommended alternative. 
Alternative 3 – Approve construction funding to complete proposed MInC and Public Site
Improvements 
Pros:
(1)   Implementation of FT Long-Term Strategic Plan objectives of supporting fishing and
maritime clusters as well as improving long-term financial viability of FT.
(2)   Creation of FT based hub, in financial partnership with the State of Washington, for
regional innovation initiative and achieve Port objectives of advancing maritime
industry through innovation and modernization.
(3)   Addition of major maritime business tenant(s) and needed light industrial space within
the Ballard Interbay area.
(4)   Redevelopment  of  existing  vacant  and  dilapidated  facility  areas  and  make  an
architectural statement at site entrance.
(5)   Enhancement of public awareness and enjoyment of Fishermen’s Terminal. 
(6)   Support the creation of many new jobs in the maritime/manufacturing sector.
Cons:
(1)   Requires major Port investment of funds.
(2)   Creates  temporary  construction  impacts  to  existing  fishing  and  tenant  business
operations.

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

             COMMISSION AGENDA – Action Item No. 10f                               Page 13 of 15 
Meeting Date: August 8, 2023 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary           Capital           Expense            Total 
COST ESTIMATE                                                                            
Previous Estimate (including 1% for Art)                                                            
MInC Building                          $26,400,000                  $0       $26,400,000  
Site Improvements                     $3,20,000                  $0        $3,203,000   
Current Change (including 1% for Art)                                                              
MInC Building                           $3,000,000                   $0         $3,000,000 
Site Improvements                       ($3,000)                  $0            ($3,000) 
Revised estimate (including 1% for Art)                                                             
MInC Building                          $29,400,000                  $0       $29,400,000  
Site Improvements                    $3,200,000                  $0        $3,200,000   
AUTHORIZATION                                                                         
Previous authorizations                                                                                 
MInC Building                           $3,650,000                   $0        $3,650,000   
Site Improvements                   $1,535,505                  $0        $1,535,505   
Current request for authorization                                                                  
 (including 1% for Art) 
MInC Building                          $25,750,000                 $0        $25,750,000 
Site Improvements                   $1,665,000                  $0        $1,665,000   
Total authorizations, including this
request                                      $29,400,000                $0       $29,400,000 
MInC Building                            $3,200,000                 $0          $3,200,000 
Site Improvements    
Remaining amount to be authorized                                                               
MInC Building                                    $0                 $0                  $0 
Site Improvements                              $0                $0                  $0 
Annual Budget Status and Source of Funds 
The MInC project was included in the 2023 Plan of Finance under C801084 FT Maritime
Innovation Center with a total estimated project cost of $25,060,000.   The Public Site
Improvements project was included in the 2023 Plan of Finance under C801211  FT Site
Improvements with a total estimated project cost of $3,487,000.  Both projects have been
included with updated cost estimates in the draft 2024 Capital Plan currently in development.
Both projects will be funded by the Tax Levy. The MInC has received a $5 million contribution
towards construction from the State of Washington’s Department of Commerce. 


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

             COMMISSION AGENDA – Action Item No. 10f                               Page 14 of 15 
Meeting Date: August 8, 2023 
Financial Analysis and Summary 
Project cost for analysis              $27,600,000 (excludes $5 million state contribution) 
Business Unit (BU)                  Maritime Portfolio Management 
Effect on business performance     Upon full occupancy, the innovation center is expected to
(NOI after depreciation)            generate incremental revenue of approximately $550K
per year. A more accurate income forecast will be
available upon execution of future lease/operating 
agreement(s). Together, both projects will increase
annual depreciation by approximately $650K. 
IRR/NPV (if relevant)                NPV (approx.): ($15,000,000) 
IRR: N/A 
CPE Impact                       N/A 
ADDITIONAL BACKGROUND 
The Living Building Challenge:
The MInC and Public Site Improvements project will achieve what only a handful of projects have
done to date through adoption of the Living Building Challenge.  The LBC consists of seven
performance categories, or “Petals”: Place, Water, Energy, Health + Happiness, Materials, Equity
and Beauty. Each of these petals requires an intensive  and intentional  design, skilled 
construction, and a 12-month maintenance and data collection period to prove that all the
innovative sustainable systems are working properly and achieving maximum efficiency to obtain
final LBC certification.  LBC excludes all “Red List” chemicals in the materials used, requires
salvage of wood materials, enhances the health of the community through equity, education,
aesthetics, clean air and water, and access to public amenities. 
For a complete description of the Living Building Challenge and its imperatives, please see
Attachment 2. 
ATTACHMENTS TO THIS REQUEST 
(1)   Living Building Challenge 4.0 
(2)   Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
• November 11, 2022 – Commission authorized an additional $500,000 in design funding
for the proposed Fishermen’s Terminal Maritime Innovation Center (C801084, U00414)
to complete design and permitting due to a design error that required correction.
•    March 08, 2022 –Commission authorization for the Executive Director to invest at least
$5,718,840 into the Maritime Innovation Center (MInC) to provide required matching
funds for a United States Economic Development Administration grant in the amount of
$5,000,000. 

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

             COMMISSION AGENDA – Action Item No. 10f                               Page 15 of 15 
Meeting Date: August 8, 2023 
•    May 11, 2021 – Commission authorize d an additional $1,000,000 in design funding for the
proposed Fishermen’s Terminal Maritime Innovation Center (C801084, U00414) to
complete design and permitting; and (2) to execute an amendment to the existing service
agreement with Miller Hull Partnership, LLP for Fishermen’s Terminal Phased Design
Services in the amount of $2,500,000; for a new Not-To-Exceed (NTE) value of
$6,000,000.
•    March 23, 2021 – Commission authorized Design and Permitting completion of the FT Site
Improvements (U00320) Under the New CIP C801211, utilizing $1,525,505 in formerly
authorized funding for the Gateway Building.  
•    December 8, 2020 – Commission authorized Construction of the MInC as the condition
for  executing  the  Interagency  Agreement  with  Washington  State  Department  of
Commerce to allow the acceptance of a $5M grant towards its construction.   
•    May 14, 2019 – Commission authorized $1,850,000 design funding and an amendment to
the Fishermen’s Terminal Phased Design Services contract, with Miller Hull Partnership
LLP, for $1,000,000 for final planning, design, and permitting for the Maritime Innovation
Center.     
• January 22, 2019 – The Commission authorized an additional $1,800,000 in design funding
for FT Gateway Building improvements, and the execution of an amendment to the
existing Architectural/Engineering Services contract for FT Redevelopment for $1,000,000
to complete the final planning, design and permitting of the Gateway Building and FT Site
Improvements.   
• January 8, 2019 – Commission received a briefing regarding Maritime Blue Plan and the
Maritime Innovation Center.      
• September 26, 2017 – TheCommission authorized $1,325,000 construction funding for
the demolition of the existing bank building and Net Sheds 7 and 8.  This work has
not yet been advertised for bids, per direction by the Commission, pending finalization of
a Gateway Building tenant lease agreement.    
•    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).