Item No.:                 7c_Attach_1 
Meeting Date:          September 8, 2015 
PORT OF SEATTLE ECONOMIC DEVELOPMENT DIVISION BUSINESS PLAN 
August 31, 2015 
COMMITMENT: 
"We stand ready to get to
The Port of Seattle creates economic opportunity for all, stewards   work, contribute resources
our environment responsibly, partners with surrounding          and join the teams that
communities, promotes social responsibility, conducts ourselves
pursue these initiatives" 
transparently, and holds ourselves accountable. We will leave
Seattle Port Commission 
succeeding generations a stronger port. 
Excerpt from Century Agenda 
DIVISION MISSION: 
To implement the Port of Seattle's Century Agenda creating quality jobs and driving economic
prosperity throughout Washington State.
DIVISION VISION: 
The Economic Development Division will implement initiatives that position the King County region
for economic success: 
Organize and implement targeted efforts to raise the Port's and the region's image as a
business location; 
Develop real estate projects that trigger public/private investment and job creation; 
Identify incubator and economic development projects where the Port's investment could
trigger public/private investment, job creation, and return short and long term value to
Port of Seattle operations (ex. boat building collective, etc.); 
Implement workforce development projects that support the Port's key sectors (ex. Airport
Maritime, Manufacturing, and Construction); 
Increase international visitor traffic to the region through targeted tourism promotions; and 
Support and develop small business enterprises that can partner with the Port on public
works projects, concession operations and other goods and services needs. 

The Port of Seattle's Economic Development Division will also manage many of the Port's key
properties including our Pier 69 Headquarters.
The Port is already recognized as a significant driver of regional economic growth. Successful
implementation of this plan will bolster the Port's reputation as a statewide economic
development engine. This will not happen overnight. Economic development is a long term
investment. We are confident that this plan will produce some short term successes but also
realistic that newer initiatives may take several years before they generate tangible economic
impacts.
It is also important to recognize that economic development is a team sport. The Port does not
have a franchise on economic development and we will not meet Century Agenda goals unless we
work effectively with public and private partners in King County and throughout Washington State. 

1

ECONOMIC DEVELOPMENT DIVISION  PRIORITY GOALS AND OBJECTIVES 
GOAL: TANGIBLY SUPPORT PUBLIC AND
PRIVATE INVESTMENT PROJECTS THAT CREATE
NEW JOBS AND GENERATE NEW TAX REVENUES
FOR THE PORT AND ITS LOCAL GOVERNMENT
PARTNERS IN KING COUNTY AND WASHINGTON
STATE; 
Objective: Organize and implement targeted efforts to raise the Port's and the region's image 
as a business location 
Performance Measure  Performance Target     Actions 
Organize and        Generate leads from 80+  Facilitate discussions with partners to
implement a        expanding businesses:    develop coordinated marketing plan by Q3
cooperatively funded      Participate in     2016: 
and managed           select prospecting    Match port contributions towards
marketing initiative         missions, trade         initiative on a 1:1 basis; 
that generates interest       shows, and          Formalize partner/marketing
from expanding          pertinent industry      alliance staffing plans 
businesses interested        events             Develop tracking and performance
in Port properties or
Host 8           measures to help manage and
coop partners' facility
prospective firms       evaluate marketing initiative. 
options. 
on site selection
Implement plan between Q3 2016-2017 
tours of the
region 

Objective: Incubate and accelerate businesses that add short and long term value to Port of
Seattle operations 
Performance Measure  Performance Target     Actions 
Evaluate status,       A complete inventory of   Develop inventory of incubators and
location, and extent of  incubators and         accelerators within Puget Sound: 
current accelerator    accelerators within the        Location 
and incubator       Puget Sound region by        Focus 
initiatives in King       Q2 2016                     Results 
County to discern
Future plans 
whether and how the   Recommendations 
Port could accent small  regarding specific Port
Identify options for Port investments or
business formation and  incubator/accelerator
initiatives that support existing or new
growth within the     projects and investments
incubators/accelerators. 
region              by Q3 2016 
2

Evaluate broader     Develop an inventory of   Develop inventory of incubators and
incubator and       incubators and economic  economic development projects in 
economic         development projects    Washington state 
development project   within WA State by Q2       Location 
investment options    2017 
Focus 
with Port, ADO and
other economic                          Results 
Provide
development partners                      Future plans 
recommendations
to discern how the Port
regarding specific Port
could support business
incubator and economic  Identify options for Port investments or
formation and growth
development projects    initiatives that support promising
throughout WA State 
and potential          incubators or economic development
investments           projects adding jobs and value back to Port
by Q3 2017           of Seattle operations.
GOAL: U SE OUR INFLUENCE AS A PORT TO
DRIVE COMPETITIVENES S OF KEY INDUSTRY
CLUSTERS THROUGH WORKFORCE
DEVELOPMENT AND THE DEVELOPMENT OF
EFFECTIVE SMALL BUSI NESS SUPPLIER
NETWORKS. 
Objective: Increase workforce training to improve placement and wage progression
opportunities in Airport, Maritime, Manufacturing and Construction industries 
Performance       Performance Target     Actions 
Measures 
Implement a regional  Airport Employment Center:  OSR to help participate in RFP process,
strategy that supports  Increase workforce        oversee contract compliance, metrics,
quality jobs and      development services to    forecasted outcomes and review of
training opportunities  meet Airport growth.       reported outcomes to support adjustments
to ensure a pipeline of    1,500 job placements      to the model and/or contracts. 
qualified workers in      410 individuals will attain
Port sectors.            job readiness and core
employment skills 
Completion of sectoral
Career Pathways roadmap 
Increased employer
participation (time $) 
Leverage career pathways
training through
partnerships 
3

Expand workforce        Obtain CEO and Commission approval for
development services in     expanded strategies 
Maritime, Construction, and
Develop/manage RFP process(s) to select
Manufacturing in place by
providers to implement strategies 
Q3-2016 
Stakeholder Engagement to Support Formal
Collaboration and Partnering (Multi-agency,
multi-institution, employer) 
Manage program design & implementation 

Objective: Increase the Proportion of Funds Spent by the Port with Qualified Small Business
Firms on Construction, Goods and Services to 40% of the Eligible Dollars Spent 
Performance Measure  Performance Target     Actions 
Work with CPO and Division leadership
Increase small business   throughout the Port to establish goals for
Implement the
participation including    small business utilization.
updated Port's small
M/W/DBE in 2016 to 33% 
business program so it
2017 to 35% 2018 to    Work with the external small business
aligns with Century
36% 2019 to 38% 2020 to  stakeholders for comments/suggestions 
Agenda metrics. 
40%              Implement expanded program by Q1-2016 
Obtain CEO approval by Q3-2015 
Implement a race                      Propose the goal to the FAA in Q3-2015 and
conscious DBE program                  seek FAA approval by Q4-2015 
Implement by Q1-2016 
for federally assisted                        Coordinate with CPO to update/amend all
projects (DBE program)                    relevant documentation (solicitation
documents and contracts) 
Implement "PortSBE                   Develop the small business accelerator
Support the capacity
Generator" a small                      structure by Q3-2015 and implement in Q4-
development of at least
business accelerator                      2015 
15 small business firms
program as supported
annually 
by Commission. 
OSR to coordinate with CPO on said
Publicly promote the
updates 
updated opportunity
Quarterly             Ensure that information is distributed
listings to small and
through relevant community organizations
M/W/DBE Businesses 
that support small business 




4

GOAL: AGGRESSIVELY USE THE
PORT'S REAL ESTATE ASSETS TO DRIVE
JOB CREATION AND SUPPORT KEY
INDUSTRY CLUSTERS. 

Objective: Meet 2016 Financial Targets 
Performance Measure  Performance Target     Actions 
Economic         Net Operating Income of  Continually monitor potential risks to Net
Development Division  ($x.xxx) million at      Operating Income 
2016 Net Operating    12/31/2016 
Develop plans to mitigate or offset
Income (NOI)          Portfolio & Asset     potential losses resulting from these risks 
Management NOI
($x,xxx) 
Central Harbor
Management Group
($x,xxxK) 
Conference & Event
Centers $xxxK 
Real Estate
Development &
Planning NOI ($xK) 
Eastside Rail NOI ($xK) 
Environmental
Remediation Liability
($.xK) 
Objective: Maintain occupancy levels and rental rates at or favorable to the broader market 
Performance Measure  Performance Target     Actions 
Occupancy of       Year-end occupancy rate  Implement an ongoing leasing and
Commercial Buildings   will be 90% or better     marketing strategy for each property that 
at year-end 2016                        includes recommendations for: 
Marketing 
Asking rates based on market conditions 
Concessions (i.e. improvement allowances and
rent abatements) 
Level of maintenance 
Capital improvements 
Utilization of outside broker 
5

Objective: Generate New Revenue By Increasing Property Utilization 
Performance Measure  Performance Target     Actions 
Generate additional    Increase advertising     Analyze benefit of third party advertising in
revenue in Bell Street   revenue              appropriate locations in the garage.
Garage            Increase usage         Develop marketing plan and implement as
appropriate. 
Continue mitigating     Minimize impact to NOI    Collaborate with Maritime Division in
impact of cruise                         planning for cruise expansion. 
terminal expansion at                     Identify impacts, develop new revenue
Pier 66.                                   opportunities and mitigate risks to existing
contracts. 
Develop plan to refresh  Preliminary plan        Benchmark competitive facilities 
BHICC to align with    completed by end of     Develop design, project cost, and schedule
completion of       2016.               for 3-5 year capital project. 
waterfront
transportation projects
(+3-5 years) 
Develop          Plan with           Develop a strategic framework to guide: 
comprehensive real    recommendations         real estate acquisition; 
estate development   completed by Q2 2016 
Property disposition; 
strategic plan 
Asset management; and 
Investment decisions. 
Support Airport's goal   Lease revenues of $2.8    Properties in Burien: 
to grow annual       million per year by end of  Northeast Redevelopment Areas 2 and 3: 
revenues from leasing  2018 
Complete design and infrastructure
Airport property to    Approve or disapprove        planning using FAA pilot program
$5.1 million per year    potential deals; secure         funding from 2016-2018. 
by the end of 2020    commission approval as      Secure Commission approval of a
(Objective 3).          needed                     ground lease to a developer by end
of 2016 
Coordinate entitlement permitting
work with a development by end of
2016 
Properties in Des Moines: 
Des Moines Creek Business Park (87 acres): 
Monitor completion of Phase 1
improvements by end of Q1 2016 
Finalize and execute Phase 2 ground
lease to support the FAA regional
office by end of Q1 2016; monitor
completion of Phase 3
6

improvements (Q1 2016-Q3 2017) 
Des Moines Creek Business Park 2
(17 acres) 
Collaborate with the City of Des
Moines to prepare redevelopment
plans and consummate necessary
land swap by the end of 2016. 
Properties in SeaTac: 
Des Moines Creek Business Park 3 (29
acres): 
Initiate conceptual planning by the
end of 2016; prepare a
redevelopment plan by end of 2017. 
Objective: Acquire or Dispose of Land and Real Property as Circumstances Warrant 
Performance Measure  Performance Target     Actions 
Acquire or dispose of   Analyze individual       Continuously review assets and implement
assets as            properties/facilities and    long term asset management strategies 
circumstances warrant   recommend strategies 
Objective: Maintain and operate Pier 69 Assets 
Performance Measure  Performance Target     Actions 
Effectively manage    Pier 69 Facility Condition  Ensure that preventive and predictive 
deferred maintenance  Index (FCI) is .07 or     maintenance tasks are identified, optimally
at Pier 69            below                 scheduled, and performed with quality
FCI is calculated by       workmanship 
dividing the cost of
deferred maintenance by
the current replacement
value of the facility 
Successful planning    P69 Beam            Provide influential and decisive leadership
and execution of      Rehabilitation:         to ensure that projects are correctly
capital improvement     Budget: $1.6  2 MM   defined, scoped, and delivered on time and
and expense projects     Completion by Q3     within budget. 
2016 
P69 DDC System
Modernization: 
Budget: $745K 
Construction
completion by Q3
2017 

7

GOAL: INCREASE INTERNATIONAL
VISITOR TRAFFIC TO THE REGION AND
INSTITUTE A SMALL COMMUNITIES
TOURISM GRANT PROGRAM.

Objective: Make Sea-Tac Airport the West Coast "Gateway of Choice" for international travel 
Performance
Performance Target     Actions 
Measures 
Number of tour      Increase UK tour       Aggressively pursue product development
products featuring our  products featuring the    and joint promotion of the destination in
destination in the UK   destination by 10% to    the UK 
and other shared     126; increase all other    Develop strategic marketing plan with Visit
international markets   markets by 10%        Seattle for the 4 shared markets, and track
with Visit Seattle       (partnership with Visit    product development 
Seattle) 

Advertising-         Increase media coverage   Aggressively pursue travel trade and
equivalency of earned  year over year by 5% in   consumer media coverage 
media as reported by   the UK and in shared     Host international media in the destination 
international reps      markets 
Produce regular press releases,
(2014= $3m in UK; $27m  newsletters, social media and special event
across the 4 other shared  opportunities in international media
markets)             markets 
Attract new         Identify and pursue at    Research and identify international
Meetings/Incentives   least one "MICE"       opportunities for the business meetings
travel to the          (Meetings/Incentives)    trade 
destination          program from          Meet with and pursue MICE planners in
international tourism     international markets 
markets 
Invite partnership with local entities (i.e.
Bell Harbor International Conference
Center) 

Objective: Double the economic value of cruise traffic to Washington State 
Performance       Performance Target     Actions 
Measures 

8

Percentage increase in  Increase international    With cruise line, train sales staff of key
reported sales of      cruise and stay products   international tour operators 
cruise/stay packages   sold by 5%, based on     Provide collateral and sales training tools 
with tour operators     2016 program 
Objective: Maintain the Port's Leadership Role in the Tourism Industry and in Economic
Development in the Region 
Performance       Performance Target     Actions 
Measures 
Establish first tourism   Grant program         Develop and administer grant program,
grant awards         developed and first      targeted for Washington
awards in 2016         communities/entities promoting mutually
beneficial tourism programs 
Participation by in-     Increase in-kind         Actively develop relationships with tourism
state tourism partners  contributions by 5% ($1   entities across the state, from Destination
in the Port's tourism    million was received in    Marketing Organizations to individual
program, which      2014; 2015 numbers will  lodging, restaurants and attractions 
represents avoided    be available at year's end
POS costs           to set the 2016 target) 
Invite participation in in-kind opportunities
and provide media coverage and tour
product development 










9

APPENDIX 
Division Organizational Chart           Page 11 
Division Description                 Page 12 
Division Summary Goals & Outcomes Chart  Page 13 
Division Budget                  Page 14 
Economic Snapshots               Pages 15 
Business Assessment               Pages 15-17 
Challenges & Opportunities           Pages 17-20 









LINING UP FOR JOBS AT HANFORD 
QUALITY JOBS = ECONOMIC DEVELOPMENT 


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11 11

ECONOMIC DEVELOPMENT DIVISION 
The division is comprised of the following five business and service groups:
Real Estate Development & Planning 
Plans and facilitates the development of selected real estate assets currently within its own
portfolio and provides development expertise and support to the Maritime and Aviation Divisions.
The team also identifies and evaluates new opportunities outside the Port's current portfolio and
completes other transactions related to Port assets. 
Portfolio & Asset Management 
Leases, markets, and manages the Division's portfolio of conference, office, retail, commercial, and
industrial properties and works to enhance the value of the Division's assets through strategic asset
planning and repositioning. This business unit will also lead the asset management efforts related to
the Eastside Rail Corridor. It is organized into two groups: 
Central Harbor Management Group 
manages markets, leases and plans for Economic Development Division assets located from
Terminal 91 to Pier2/CEM in West Seattle. This includes various retail, office and industrial
properties, the conference and event centers, and the Eastside Rail Corridor. 
Lease Administration & Utilities Group 
processes and administers all agreements for both the Economic Development and Maritime
Divisions. This includes monitoring for compliance with all agreement terms including
insurance, surety, lease provisions, and amendments. The team also reads meters, processes
payments, and bills customers for over 255 utility meters. 
Foreign Trade Zone #5 
manages and markets use of the Port's Foreign Trade Zone for the benefit of businesses that
import goods from other countries.

Office of Social Responsibility 
Office of Social Responsibility (OSR) manages the Port of Seattle's efforts to promote small business
growth and workforce development. OSR manages the Small Business Development and Inclusion
Program; (2) the Port's Workforce Development initiatives; and (3) leads the Port's Annual
Community Giving Campaign and staff voluntarism efforts.
Tourism Development 
The Tourism program focuses on attracting visitors from five key direct-flight overseas markets:
Japan, China, the United Kingdom, France and Germany. Tourism partners with Visit Seattle and the
Washington Tourism Alliance to promote our destination through public relations and special
promotions with travel trade, consumer and social media. The Port of Seattle team develops and
maintains relationships throughout the state and region with the shared goal of increasing the
economic benefits of international tourism. 
Pier 69 Facilities Management
Ensures functionality of Port Headquarters by integrating people, place, process, and
technology. Operations include reception, motor pool, mailroom, shipping & receiving, conference
center, and Clipper Caf. 

12

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13 13

Economic Development Division 2015 Budget Overview 
Revenue 
Commercial Real Estate           $6,518,000 
Conference/Event Ctr            $8,547,000 
Eastside Rail Corridor              $ 12,000 
Real Estate Development          $ 960,000 
Total Operating Revenue          $16,025,430 
Expenses 
Commercial Real Estate           $3,795,000 
Conference/Event Center          $7,504,000 
Portfolio Mgmt Admin.           $ 947,000 
Eastside Rail Corridor              $ 210,000 
Real Estate Development          $ 948,000 
Office of Social Responsibility        $2,312,000 
Tourism                    $ 981,000 
Facilities                          $1,600,000 
Division Admin.                 $ 419,000 
Total Operation Expenses         $18,967,000 (does not include corporate allocations) 
Capital Budget 
CIP Number Project Description             Page    2015     2016 
C800314 P69 Built-Up Roof Replacement             533     40 
C800698 P69 Roof Beam Rehabilitation              185     1,974 
C800691 Pier 69 Carpet Replacement               179 
C800196 T102 Bldg Roof HVAC Replacemt            200     6,050 
C800814 BHICC Fit & Finish 
C800115 Fleet Replacement                    934     302 
C800730 RE: 2015 Small Projects                 505 
C800244 RE Technology Projects                 250     250 
C800359  RE: 2011 Small Projects                 57 
C800537 RE: 2013 Small Projects                 3 
C800815 ED: 2016 Small Projects                        120 
C800562 ED: 2017 & Beyond Small Proj 
C800126 Tenant Improvements -Capital              790     300 
C800749 Bell St Gar AI Elevtr Upgrade              25      325 
C800813 P66 Elevator 2,3,4 Upgrades               240     1,360 
TOTAL COMMITTED                      3,901    10,721 
C800670 P69 DDC System Modernization                   25 
C800216 RE: Contingency Renew.&Replace                  500 
C800732 RE BHICC Roof Fall Protection              -       420 
TOTAL BUSINESS PLAN PROSPECTIVE             -      945 
14

ECONOMIC SNAPSHOTS 
Local Real Estate Market: 
Industrial: 
The local industrial real estate market remains strong but growth appears to be slowing. According
to Colliers International, Seattle's industrial market should see greater than average growth over
the foreseeable future as new supply meets still growing demand, bringing the overall market to
equilibrium. Rental rates increased modestly quarter over quarter and may level off in the next 12
to 18 months as new supply hits the market to meet demand. The vacancy rate is 4.8% market
wide, down 1% year over year. In the Kent Valley, which includes the airport market, the vacancy
rate is just 3.9%. The Seattle vacancy is even lower at 2.26%.
Commercial: 
The local commercial real estate market continues to be dominated by the technology industry,
which accounts for 90% of preleases and more than 60% of tenants currently in the market.
According to Colliers International, demand continues to far outpace supply. Large block contiguous 
space available is limited in existing buildings, driving large users toward new construction in
employee-favored, amenity-rich locations. Throughout 2015, vacancy will hold steady or even fall
slightly, even as new construction begins to deliver. Global tech companies continue their expansion
into the Puget Sound market  growing head count, expanding operations and absorbing large
blocks of space. 
Tourism: 
Tourism is the state's fourth-largest export industry according to Gross Domestic Product (GDP).
Visitors to Washington State in 2014 spent $19 billion and generated $1.7 billion in local and state
tax revenues. Travel and tourism supported more than 163,400 jobs and generated earnings
(payroll) in excess of $5 billion in our state. International visitors spend an average of 5 times more
than domestic travelers, and one job is created here at home for every 35 international visitors who
visit the area, according to the US Travel Association. Since the state closed the office of tourism in
2011, the POS has held a leadership role in funding and governing the Washington Tourism Alliance,
which has a budget of about $500,000 compared to competing western states with tourism budgets
ranging from $7-50 million. 
BUSINESS ASSESSMENT: 
PORTFOLIO & ASSET MANAGEMENT 
Leasing and Marketing:
The occupancy level of our Commercial Properties is currently at 90% compared to a broader
Seattle market occupancy of 90.7%. We expect leasing activity to increase with improving economic
conditions but will continue to wrestle with local challenges (e.g. transportation infrastructure
projects) on the Central Waterfront and Duwamish. Corresponding increases in leasing activity are
expected in most other submarkets. 
Operations and Maintenance: 

15

The commercial real estate industry's focus on energy efficiency has resulted in a downward trend
in total operating expenses with approximately two-thirds of the savings achieved in the utility
category, underscoring an industry focus on maximizing building efficiency.
A large portion of the operations and maintenance services related to the portfolio are provided
through the Maritime Division's Marine Maintenance Department. Our teams will continue to work
together to improve operating efficiencies, reduce environmental impact, to budget appropriately,
and to manage our expenses in order to maintain and improve the value of our portfolio of real
estate assets. 
Capital Investments/Improvements:
By the end of 2016, the Portfolio and Asset Management team is expected to have overseen
roughly $4.2M in capital investments being made in the commercial and hospitality properties.
Investments will be reflected in sustained existing revenues and improved operating efficiencies
intended to position the properties for improving market conditions and opportunity for additional
revenue.
REAL ESTATE DEVELOPMENT & PLANNING 
The group's strength lies in a relatively well-located portfolio of underutilized sites in Seattle and
surrounding the airport. This is particularly significant given the increasingly smaller supply of closein
, well-served industrial land available for development. The real estate portfolio is one of the
Economic Development Division's best means of increasing revenue and related job creation.
Disposition of the portfolio, however, will require a careful balancing of both financial and the nonfinancial
objectives described in the Century Agenda and applying both a short and long-term filter
to potential transactions. 
OFFICE OF SOCIAL RESPONSIBILITY 
Small business owners are beginning to feel better about the business environment, but many
minority and women owned businesses still believe that they do not have access to the same
opportunities, because of the lack of a more inclusive small business programs in the public 
agencies. Regarding workforce development, the CEO and the Port Commission have committed to
support the region's pipeline of qualified workers, which in turn will support the employers in Port
sectors. 
TOURISM 
The Washington Tourism Alliance (WTA) was successful in having a study plan approved by the state
legislature in 2014, and enabling legislation was introduced in spring 2015. It will be resubmitted in
2016 for passage. The statewide funding goal is $7.5 million, which the initial plan said would be
raised from industry sector participants in roughly this proportion: Lodging, 32%; Food service, 28%;
Attractions, 13%; Retail, 19%; and Transportation, 8%. This funding plan depends also on the
continued significant program funding from the international tourism partnership (Port of Seattle
and Visit Seattle). 
On a parallel course, the Port of Seattle and the Port of Walla Walla convened a "Tourism Ports Task
Force" in 2013, in order to discuss ports' potential role in statewide tourism promotion. The Task
Force has concluded that Tourism Ports should contribute to the WTA, once the enabling legislation
is in place. The ports' contribution would be incremental to the WTA's legislated collection and
potentially other sectors would also contribute, such as tribes, wineries, etc. Ports funding method
and levels have not been determined. 
16

It is time now, with the increasing global visibility of Seattle, to re-energize the Port's long-standing
promotion of the region as a year-round leisure destination. In addition, we are promoting a
"cruise-and-stay" program that encourages international cruise passengers to extend their stay in
the area. International visitors are "high value", as they spend more time and more money on
vacation than domestic travelers. These "long-haul" travelers typically have up to 3 weeks of
vacation, and often visit multiple destinations in one trip. This focus is a successful niche for us,
generating multiple international media stories and earning a "Port of the Year" designation from a
German cruise publication. Promotion partnerships with one cruise line (NCL) in Germany and the
United Kingdom resulted in an increase of 26% and 40% cruise and stay bookings through Seattle,
respectively, indicating that this opportunity is ripe. 
Our area is featured in hundreds of individual tour products among our 5 target markets, and media
coverage in these markets for 2014 was valued at more than $30.6 million, a record year. (Media
value is calculated by determining how much paid advertising would cost for the equivalent number
of pages, inches or seconds/minutes in the same media). Additionally, partners throughout the state
contributed 1 million in in-kind services to support our program. 
CHALLENGES AND OPPORTUNITIES: 
PORTFOLIO & ASSET MANAGEMENT 
Commercial Properties 
Opportunities - Improving Revenue: 
The current real estate market appears to be trending toward continuing recovery which
suggests more opportunities for improving future revenue. 
Challenges - Improving Revenue: 
Having experienced high vacancy rates over an extended period, landlords of commercial real
estate will continue to aggressively pursue tenants looking for commercial space. Wellpositioned
and maintained properties that offer attractive amenity packages more readily
benefit from improving market conditions. 
Compliance with legal, financial and regulatory aspects of public entity ownership of real
property can result in having a less competitive edge than the private sector in the commercial
real estate market (contracting procedures, security deposit requirements, and limited flexibility
in negotiations). This is likely to be reflected in achievable lease rates at the lower end of the
market range and/or lengthier vacancies through missed opportunities.
Locations of several properties within the portfolio provide only limited amenities such as public
transportation, shopping, dining, walking trails, etc.
Updating and refurbishing aging infrastructure will require forward planning and capital
investment. 
Improving operating efficiencies in properties with aging infrastructure and implementing
energy conservation improvements will involve forward planning and capital investment. 
There continues to be concern with local businesses that will be affected by the Alaskan Way
Seawall Project. Perception in the market is that the disruption from the ongoing work currently
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underway on the waterfront will continue to negatively affect businesses along the entire
waterfront for the next several years with the following potential impacts. 
Loss of traffic capacity and parking, commute time congestion
Walking access is constrained, impacting tourist activity 
Customer, public, employee and supplier access to businesses are restricted and
congested 
Negative impact to seasonal business volume from both the physical and perceptual
blockages 
Negative impact of construction activity (i.e., noise, congestion, muck) 
Loss of key infrastructure on the waterfront that serve the public and customer needs 
Potential tenant's employee access to waterfront office space may be impeded 
Limited shopping, activities, and dining choices for employees of potential office tenants 
Public and potential tenants may likely avoid the waterfront altogether 
No public transportation along Alaskan Way 
The multiple organizational changes in progress and more coming make it difficult to continue
process improvement and performance metrics development with significant unknowns. 
The Northwest Seaport Alliance and Surface Water Utility both present potential for many
system configuration challenges, changes to various reports, SharePoint workflow design, and
support staff assignments. Until more detail has been developed, we are proceeding to analyze
the most likely outcomes in order to be prepared for implementation in a timely manner when
the organization structures have been finalized. 

Conference & Event Centers 
Opportunities: 
Continued Investment  The rebuilding of the Seattle Waterfront over the next few years
presents a distinct opportunity to leverage historical success and iconic heritage to update and
refresh the Bell Harbor International Conference and Event Center, the Maritime Event Center
and the World Trade Center Seattle in anticipation of renewed regional and international
interest. 
Leveraging Paul Schell Center  The renaming of Bell Street Pier provides another opportunity to
leverage on ongoing investment in the facilities at Pier 66. Additionally, renaming the entire
complex at Pier 66 would also greatly enhance the visibility and search profile of the Conference
Center and the cruise terminal. 
Challenges: 
Hotel room supply  Seattle is an increasingly popular destination and hotel room supply is
currently down thereby limiting the ability to leverage good rates for out of town conference
business. 
Increasingly short lead times in the market  There is a continuing trend toward "just-in-time"
event planning and the shortening of lead time for events creates challenges in forecasting and
logistics. 

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Aging facilities - Updating and refurbishing aging infrastructure will require forward planning and
capital investment. 
Competitive marketalthough no new facilities are planned for 2015, a number of event space
venues have recently opened or have been remodeled in the past year to be more attractive
(the Motif, the (Marriott) Renaissance Hotel, the Westin Hotel, the Chihuly Garden and Glass,
the Conference Center at the Washington State Convention Center, and MOHAI).
Schedule conflicts - Cruise activity and departure times often conflict with opportunities for
planned events and has a negative impact on event opportunities. 
Parking capacity at Pier 91, Smith Cove Conference and Event Center, is very limited and
inconveniently located. Also, transportation options to the site are limited. 
The prospective expansion of the cruise program at Pier 66 may constrain event operations. 
REAL ESTATE DEVELOPMENT & PLANNING 
Opportunity: Relatively large portfolio of underutilized land, some of which can be positioned
for disposition with minimal investment. 
Opportunity: Current market conditions appear to be fairly favorable given the overeall
strength of the regional and national economy. 
Challenge: Market conditions are constantly in flux and ultimately drive the value that can be
obtained for any particular site. 
Challenge: Some of the sites in the portfolio have encumbrancesboth physical and
regulatorythat constrain development. 

OFFICE OF SOCIAL RESPONSIBILITY 
Small Business Challenges 
How best to respond to the under-representation of minority and women in port contracting, as
documented by the 2014 disparity study. 
How to ensure the accurate collection, tracking and reporting of participation by ethnicity in Port
business opportunities. 
Develop an effective rebranding of the Port's Small Business Program to "Small Business &
Inclusion Program". 
Small Business Opportunities 
Recommending procurement policy changes in response to the results of the disparity study. 
Rebranding and refreshing the Port's Small Business Program to "Small Business & Inclusion
Program" to ensure broad appeal and participation. 
Coordination with the Airport Minority Advisory Council (AMAC) and Port teams of a regional
conference in 2016 for small business opportunities at the airport in construction, professional
services, purchased goods and services and the ADR Program.. 

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Workforce Development Challenges 
How to maximize the Port's legislative authority and funding available for workforce development. 
How best to identify other sources of Expansion Funds  Levy, General Fund, Tenant Charges,
Contractor Labor Hour Charges. 
Draft resolutions needed to support/enable new strategy. 
How to support the Commission's Quality Jobs Strategy. 
Workforce Development Opportunities 
The Port Commission has publicly expressed an interest in the expansion of the workforce
development strategy. 
The CEO has expressed support in continued Port investments and in the program expansion. 
Source(s) of Expansion Funds  Levy, General Fund, Tenant Charges, Contractor Labor Hour
Charges. 
Resolution as needed to support/enable new strategy. 
Quality Jobs  implementation, enforcement, and impact measurement. 
TOURISM 
Opportunity: Build on "cruise-and-stay program" by investing in joint promotions with cruise lines
and tour agencies, and target cruise media for coverage, focusing on the United Kingdom and
Germany as top cruising markets in the world. 
Opportunity: Develop, build and re-invigorate off-season programming for targeted markets,
partner with top-producing tour agencies and key media for promotion. 
Opportunity: Develop and execute grant program to further encourage partners in King County,
Puget Sound and the state to invest in tourism promotion.
Challenge: Constraint from growth due to lack of foundational state funding and Port of Seattle
/Visit Seattle funding that has not even kept pace with inflation and currency values. 






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