PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5b 
Date of Meeting    September 1, 2009 
DATE:    August 14, 2009 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:    Melinda Miller, Director, Real Estate Portfolio 
Patricia Spangler, Real Estate Manager 
SUBJECT:  New Third Party Property Management Agreement for the World Trade Center
West Building 

ACTION REQUESTED; 
Authorization for the CEO to execute a contract for a third party manager for the operations and
maintenance associated with the World Trade Center West Building with an estimated annual
value, using historical numbers, $132,000. 

BACKGROUND
In 1998, the Port entered into an agreement with Wright Runstad and Company to develop a
Class A office building known as the World Trade Center West Building (Building) along with
two sections of the Bell Street Pier Garage. Upon completion of the Building, the Port hired
Wright Runstad as a third party property manager. This decision was based on warranties
associated with the development and Wright Runstad's established management of other Class A
properties. 
PROJECT DESCRIPTION
Under this procurement, the Port will advertise a Request for Proposal, with the intent to employ
a third party management firm to manage the operations and maintenance of the Building as a
first class office building, to assure continuing tenant satisfaction and to secure the maximum
direct and indirect return on the Port's investment consistent with the Port's ownership and
operational objectives. The Building consists of approximately 69,507 rentable square feet and
includes landscape plazas, sidewalks, driveways and terraced areas surrounding the actual
Building as depicted on Exhibit A.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
August 14, 2009 
Page 2 of 2 

ALTERNATIVES CONSIDERED /RECOMMENDED ACTION 
Alternative Considered  Bring Property Management In-House 
Port staff could conceivably perform the property management and book-keeping 
responsibilities, but it would require hiring additional Real Estate staff to manage the new
workload.
The Port would also lose the economies of scale achieved by an outside manager. That has
several Class A buildings within its portfolio. In addition, the costs for the required higher level
service of day staff and 24/7 day per week security service for a Class A Building will likely
increase. The costs of these services are reduced when sharing the services with other similar
buildings. 
Recommended Action  Port Enter Into A New Contract With a Third-Party Management
Company to Manage the Building 
It is both more efficient and less expensive to engage the services of a third-party manager for
the World Trade Center West Office Building. This Building is the only Class A Office
Building currently in our portfolio and its requirements are best met by an expert in that sector. 
PROJECT SCHEDULE
Advertisement for RFP posted August 11, 2009, with the final selection of the third party
property manager the week of November 9, 2009. A new third party management contract
would be in place by January 1, 2010.

Item No, Sb Attach
Exhibit A      Date of
Meeting Sept. 1, 200~! 
~~~ I
~, 
i"",
'.   :. r: 'l
11,I     ===~ 
-,         r'
I
'I               I
i                                 ,
.,
\




_JLJL~T .
.'-IJl~'iJ 
"'-U.-~ iJ '~Jl. 
_
.~  J         ~r 
~r