Minutes Exhibit K
Port Commission Special 
Meeting of November 10, 2015

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BST Associates                                              Page 2

located in Seattle).  The current number of permits stands at 72 in 2015 (17 are located in
Seattle). During the past 20 years, the number of permits declined by 37% in Washington State
and by 54% in Seattle.

Seaview Boatyard has operated in Seattle for more than 40 years, providing great service to its
customers, the majority of whom are also the Port's man'na customers (primarily tenants of
Shilshole Bay Marina). Boater's selection of a marina is driven by the availability of amenities
and services. Having a boatyard located at Shilshole Bay Marina is an important factor.

firms that have succeeded in the boatyard industry have established efficient
Third,
facilities that can weather the ups and downs of the economy.

This must be accomplished by efcient use of facilities and wise capital investments. Seaview's
boatyard is approximately 1.5 acres. BST Associates recently reviewed 22 boatyards in Puget
Sound, which ranged in size from 0.6                        size of 2.5
acres to 6.0 acres with an ayerage        acres.
Seaview is a smaller yard than most of the boatyards that it competes with. The expansion will
increase the size of Seaview's yard to 1.7 acres. This will allow more efcient service, which is
particularly important in the peak repair season.
entities (ports and cities) and
Many of the competing yards in Puget Sound are owned by public
the public entity offers a                                                                 operated by the public entity or a private tenant.  In many cases,
discounted rent for a tenant that generates a signicant level of employment and/or invests its
This has occurred for boatyard/shipyard operations in Blaine,
own funds in capital development.
Bellingham, Anacortes and Des Moines, among other locations. The discount provides for a
lower rental rate for the tenant and/or use of publicly owned facilities without charge (Travelift
pier and/or Travelift).

The current rental rate for boatyards/shipyards typically ranges from $0.05 to $0.10 per square
foot per month from Blaine to Everett, which is signicantly lower than the rent paid by Seaview.
The Port of Seattle lease with Seaview Boatyard is at the market rate for waterfront industrial
foot per month). There is no discount
property in Seattle (at a blended rate of $0.22 per square
for the employment (30 employees) or the investment by Seaview ($1.95 millibn).

This modest expansion will help the yard continue to provide excellent service for- Seattle boaters well
into the future.

Very Truly Yours,
WW
Paul Sorensen
_
Principal
'
a:

PO Box 82388, Kenmore, WA 98028-0388