6a 2 Supp

ITEM NO: ___6a-2 supp____
DATE OF
MEETING:___8/4/2009_____

Central Waterfront
Development Project
A Look Back
as It Relates to the
Century Agenda

500170" "WI/mes
- Shilshole Bay Marina
Lake
Mix/lington             Container
Terminals
Cargo &
Ship Canal
..                                                                                                   Cruise Terminals
@ - . Fishermen s              Lake
Terminal                                                                  Harbor Senices
Union
'                                                                                                              I
['5
-
Maritime Industrial
Center                                                    Bell Street Pier                                        Publit Access Points
.                                                          World Trade Center

. .
Balmer Rail -                                      (Pier 66)
'
Yard (BNSF) .
.
Pier 48
>               .i '.


'

' Sea/mwks
Terminal 91 -'        I. .'
Downtown '      Stadium

Pier69" A A.     j .' 1-90
Port Headquarters '

Bell Harbor Marina
....... SAFECO Field
-
Terminal 46 I
Elliot! Bay
.Terminal30

. SIG Intermodal Rail Yard
Terminal l8 -
(BNSF)                  Kent Valley
I5 miles

A
A
Terminal 106
,
ARGO
' Intermodal
Rail Yard
Terminal 2 '
(UP)

-'
Jim Clark'. .. -
Terminal 5 '
A.    ' Terminal 108
'
Marina .
Harbor
'
Puget Sound ' Island
-.                                          Sea-Tac
Terminal 103'      Marina _'A             SR' 99
10                                                         Airport
'
A
a     Terminal 102 .'                     IO miles
5
k   "m""a' "'7"
Port of Seattle Seaport Facilities ..
_


' AN
Terminal 115 -
@ Relic/Sam!!!
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3

4

5

Project Background
Property acquisitions began in late 1980's
Planning started 1990
Port would build the pierside elements, including cruise terminal
the upland sites would be sold and developed by the private sector.
RFP for upland development issued
In 1994, the Port decided to break up the uplands.
Residential and hotel sites were sold, WTCW and Garage
developed
Pierside opened 1995
In 1997, the Port added the WTC-North garage.
Final project element (hotel) completed in 2001
Funded through tax levy, G.O. Bonds, grants, general fund
6

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7

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9

101O

Condos
Marina
Hotel
Restaurants
WTC
Office Building
Conference Center
Parking    Cruise Terminal
11

Proforma vs Actual
$'s in Millions, undiscounted        95 Proforma     2009          Difference
"Development" Costs
1) Capital costs        $100.1        $177.7     $77.6
2) Sales               ($13.4)        ($16.4)    ($3.0)
3) Contributions      ($4.5)         ($4.5)     $0.0
Total Cost                 $82.2         $156.8    $74.6
Net Operating Income   $17.1        $27.7     $10.6
Internal Rate of Return   (1.0%)        (0.3%)
12

Conclusions
The project succeeded in revitalizing and bringing much-
needed development to the waterfront.
It brought private investment, public moorage, a museum,
and a conference center to the waterfront and spurred
Belltown development.
Cruise has substantial economic benefits for the region.
Port cruise activities at Pier 66 generated 1,262 jobs,
$57.5 million in local wages, $5.2 million in state/local
taxes in 2008.
The project as a whole has not been a financial success
as a stand alone real estate investment.

13

Lessons Learned
Objectives can shift over time, especially with long term
projects. Quantitative and qualitative changes occur.
Projects can change scope considerably over time.
Looking at incremental changes does not show this
clearly.
Port development projects need especially careful and
continually updated financial analyses.
Major Challenge: consistently managing long-term
objectives due to diverse stakeholders, shifting objectives
and financial expectations

14

Central Waterfront Project
Commission Overview

15

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