COMMISSION 
AGENDA MEMORANDUM                        Item No.          8f 
ACTION ITEM                            Date of Meeting       May 11, 2021 

DATE :     April 16, 2021 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Dave McFadden, Managing Director Economic Development 
Stephanie Jones Stebbins, Managing Director Maritime 
Kyra Lise, Director Real Estate Development 
Elena Franks, Capital Project Manager 
SUBJECT:  FT Maritime Innovation Center and Service Agreement for FT Phased Design Services 
Amount of this request:                                                    $1,000,000 
Total estimated program cost:                Maritime Innovation Center: $19,800,000 
General Site Improvements:   $3,300,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to (1) authorize 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. 
No request for funding is associated with this authorization. 
EXECUTIVE SUMMARY 
Design Funding for Maritime Innovation Center 
The design and permitting on the Fishermen's Terminal (FT) Maritime Innovation Center (MInC) 
includes completing the renovation and historic restoration of the Port's former Seattle Ship
Supply Building to house the approximately 15,000 square-foot home port business incubator to
support the work of the Maritime Blue Accelerator program in formal partnership with the State
of Washington's Department of Commerce, grantor of $5 million towards its construction. The
total project cost for the Maritime Innovation Center is currently estimated at $19,800,000. 
The approval of the requested funding for the proposed FT MInC will enable the Port to complete
the design required for submission to permitting departments and agencies to make the project
ready for bid and construction. 


Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 8f                                   Page 2 of 9 
Meeting Date: May 11, 2021 
Amendment to The Service Agreement 
In accordance with prior Commission authorizations, Miller Hull Partnership LLC, the design
consultant for the Fishermen's Terminal Development program, has completed a 60% level
design for the projects under the Service Agreement for Fishermen's Terminal Phased Design
Services.  The  current  contract's  NTE  is  $3,500,000  and  does  not  account  for  the  Site
Improvements project, as defined upon 60% design completion (2021_03_23_RM_10b), nor for
the Maritime Innovation Center with the Living Building Challenge requirements and associated
"best"  performance  targets,  which  were  established  during  60%  Design  Development
(2020_12_08_RM_10a). 
The Service Agreement was conceived as a Phased Design Services contract. Therefore, its
original and former NTE amounts were estimates for the Phase of work that was being presented
at the time, and it did not capture all phases of design through support during construction. To
this  point,  the  initial  estimated  design  cost  for  the  redevelopment  was  $7  million 
(2016_12_13_RM_3c)  and was  meant to cover design of Gateway Building (the original
warehouse concept) and the West Wall Building. 
The addition to the contract value at this time is needed to complete the remaining phases of
design on the MInC and Site Improvements projects. As a result, the contract must be amended
for additional capacity in the amount of $2,500,000, which will increase Miller Hull's FT Phased
Design Services contract to $6,000,000. This will allow Miller Hull to provide design services for
FT Redevelopment projects, which include the MInC and Site Improvements.
JUSTIFICATION 
Design Funding for Maritime Innovation Center 
Additional funding is needed to address the project cost change due to recent scope additions,
which include a set of mitigation strategies identified during the Risk Analysis performed at 60%
Design that are aimed at reducing risks specific to the age of the existing structure as well as to
the Living Building Challenge (LBC) requirements. Such strategies have the potential to reduce
the incidence of change orders during construction, therefore accelerating completion. 
The cost estimate has also been updated for escalation increases triggered by wage inflation and
expected skilled labor shortages projected for 2022. Lastly, the requested funding includes the
cost of design support services during bid. 
Amendment to The Service Agreement 
The ability to continue work on the Maritime Innovation Center and the Site Improvements is
dependent on the contract's amendment of the NTE value. Therefore, design progress is on hold
for both projects until the amendment is authorized and executed. 


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

COMMISSION AGENDA  Action Item No. 8f                                   Page 3 of 9 
Meeting Date: May 11, 2021 
Diversity in Contracting 
The project team is working with the Port's Diversity in Contracting Department to set
Women/Minority Business Enterprise (WMBE) aspirational goals for both the MInC and the Site
Improvements projects. 
In pursuing the LBC credential, the Maritime Innovation Center project will satisfy performance
areas that include Equity and Inclusion, with diversity in contracting being one of the metrics. Th e
Equity-based LBC compliance items are thus also expected to help us achieve the Port's
commitment to increasing the utilization of WMBE businesses in its contracting processes.
DETAILS 
With respect to the overall progress of the FT Redevelopment Program, since last coming before
the Commission in March, the Port has made the following progress: 
The Maritime Innovation Center cleared the second cycle of the Shoreline Substantial
Development Permit (SSDP) review without corrections. 
Requested to earmark $3M in federal funding for Fiscal Year 2022 (10/1/21-9/30/22
period) for the Maritime Innovation Center. 
Exploring Economic Development Administration (EDA) funding opportunities for the
Maritime Innovation Center and planning to submit an application package in June. 
Completed 60% Design risk analysis and modeling for the Maritime Innovation Center and
Site Improvements. 
Presented FT Redevelopment Program updates to the North Seattle Industrial Association 
and the Neighbors Advisory Committee. 
Hosted a FT Redevelopment Program Virtual Open House (100+ registered attendees). 
Design Funding for Maritime Innovation Center 
Elements that have contributed to the Maritime Innovation Center's project cost include, but are
not limited to: 
(1) Escalation adjustment triggered by wage inflation and expected skilled labor shortages 
projected for 2022. 
(2) Inclusion of design support through the bid process effort, with an enhanced submittal
and pre-construction process, as part of the contracting mitigation strategies planned to
reduce the risk carried by LBC requirements. 
(3) Loss of design-related workflow and deliverable production efficiencies formerly realized
by combining the MINC and Site Improvements with the larger, more conventional
ground-up construction of the Gateway and Public Street Improvements projects. These
efficiencies are no longer able to be realized with the smaller, more complex revitalization
of the MInC to Living Building Challenge Standards as a standalone project. 
(4) Need for a conceptual management plan for construction staging, phasing, and laydown
to integrate salvaged materials and/or specifying new materials and sources, depending
on available quantities, now changed due to partially relying on the buildings that were
to be demolished as part of the Gateway development, now paused. 

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

COMMISSION AGENDA  Action Item No. 8f                                   Page 4 of 9 
Meeting Date: May 11, 2021 
(5) Need for coordination and integration of bore field test findings to finalize the Ground
Source Heat Pump (GSHP) mechanical system. 
(6) Need to perform environmental investigations and testing to verify soil contamination 
levels. 
(7) Need to perform a 3-D laser scan (LiDAR) to effectively survey the dimensions of existing
structural  elements  to  remain,  and  consequent  adjustments  to  structural  and
architectural design based on scan findings. 
(8) Need to reconfigure and develop electrical specifications; integrate new fiber optic
backbone cabling and security standards. 
The Site Improvements project does not need additional funding to complete design and 
permitting at this time. 
Staff will return to the Commission once the projects are fully designed to request authorization 
for advertisement for construction bids, as well as construction funding for the proposed MInC
(U00414) and the Site Improvements (U00320) projects.
Amendment to The Service Agreement 
The professional design and permitting services provided by the service agreement with Miller
Hull Partnership LLP for Fishermen's Terminal Phased Design Services presently serve the
following work: 
(1) Permitting and construction of the Maritime Innovation Center (C801084, U00414). 
(2) Permitting and construction of the general site improvements (C801211, U00320). 
(3) Shelve the Gateway Building project (C800525, U00412). 
(4) Shelve the Public Street Improvements project (U00418) associated with the Gateway. 
All four projects have reached a 60% design threshold by consulting architect Miller Hull.
Commission approval of this action will allow design to continue on the MInC and Site
Improvements projects and will require presentation before the Commission for construction
authorization as early as the 2nd quarter of 2022.
The service agreement has bid support as part of construction support. The amendment will also
change this, by shifting the bid support scope to the design phase, thus allowing to seamlessly
extend Miller Hull's services through a critical phase for risk mitigation strategy and LBC 
requirements. 
Schedule 
The schedule below pertains to the MInC and site improvement projects, which are progressing 
towards completion of design and permitting phase. 


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

COMMISSION AGENDA  Action Item No. 8f                                   Page 5 of 9 
Meeting Date: May 11, 2021 
Activity 
Commission design authorization (initial FT Redevelopment)       2016 Quarter 4 
Design start                                                           2019 Quarter 2 
Commission construction authorization                           2022 Quarter 2 
Construction start                                                   2023 Quarter 1 
In-use date                                                           2024 Quarter 2 
Cost Breakdown                                        This Request    Total Project 
Design 
MInC Building                                       $1,000,000       $3,150,000 
Site Improvements                                         $0      $1,525,505 
Construction
MInC Building                                             $0     $16,650,000 
Site Improvements                                         $0      $1,774,495 
Total
MInC Building                                                $0     $19,800,000 
[does not account for $5M State grant] 
Site Improvements                                         $0      $3,300,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do nothing  Do not approve the two actions that allow to complete proposed
MInC and Site Improvements projects. 
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)   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. 
(4)   Missed  opportunity  to enhance public  awareness  and enjoyment  of Fishermen's
Terminal. 
This is not the recommended alternative. 


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

COMMISSION AGENDA  Action Item No. 8f                                   Page 6 of 9 
Meeting Date: May 11, 2021 
Alternative 2  Do not approve the two requested actions and postpone MInC and site
improvement projects until economic conditions are more predictable. 
Pros: 
(1)   Retains Port capital for other priority projects and financial initiatives. 
(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)   Likely higher cost of completing construction bid documents due to delay and restarting
remaining design and permitting process at future point. 
(2)   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. 
(3)   Loss of $5 million grant funds from Washington State Department of Commerce 
towards the construction of the MInC. 
(4)   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. 
(5)   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 design funding to complete proposed MInC; approve the Service
Agreement amendment to complete MInC and 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. 8f                                   Page 7 of 9 
Meeting Date: May 11, 2021 
(3)   Moving this project forward at this time during unprecedented market uncertainty is an
inherit risk we must manage by evaluating market information on an ongoing basis. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary                     Capital        Expense           Total 
COST ESTIMATE 
Previous Estimate 
MInC Building                             $18,000,000              $0    $18,000,000 
Site Improvements                        $3,300,000             $0     $3,300,000 
Current Change 
MInC Building                              $1,800,000              $0     $1,800,000 
Site Improvements                                $0             $0             $0 
Revised estimate
MInC Building                             $19,800,000             $0    $19,800,000 
FT Site Improvements                      $3,300,000             $0     $3,300,000 
AUTHORIZATION 
Previous authorizations
MInC Building                              $2,150,000             $0     $2,150,000 
Site Improvements                        $1,525,505            $0     $1,525,505 
Current request for authorization 
MInC Building                              $1,000,000             $0     $1,000,000 
Site Improvements                                $0            $0             $0 
Total authorizations, including this request         $4,675,505              $0     $4,675,505 
Remaining amount to be authorized
MInC Building                             $16,650,000             $0    $16,650,000 
FT Site Improvements                      $1,774,495             $0     $1,774,495 
Annual Budget Status and Source of Funds 
The MInC project was included in the 2021 Plan of Finance under C801084 FT Maritime
Innovation Center with a total project cost of approximately $16,000,000. Additional funding will
be covered by the deferred spending on C800525 FT Gateway Building and C800002 Maritime
Reserve. 
The Site Improvements project was not included in the 2021 Plan of Finance. Per the
authorization received on 3/23/2021, it will be included in the draft 2022 Capital Plan under the
new CIP C801211 with a total project cost of approximately $3,300,000. Funding for this project
will come from deferred spending on C800525 FT Gateway Building.


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

COMMISSION AGENDA  Action Item No. 8f                                   Page 8 of 9 
Meeting Date: May 11, 2021 
Both projects will be funded by the Tax Levy. The Maritime Innovation Center has received a $5
million contribution towards construction from the State of Washington's Department of
Commerce. 
Financial Analysis and Summary 
Project cost for analysis 
MInC Building                    $19,800,000 
FT Site Improvements              $3,300,000 
Business Unit (BU)                  Maritime Portfolio Management 
Effect on business performance     Forecasted NOI from the Maritime Innovation
(NOI after depreciation)             Center provided to Commission upon design completion
and construction authorization. 
Both MInC and FT Site Improvements are expected to
increase depreciation expense by over $500K per year.
IRR/NPV (if relevant) 
CPE Impact 
ADDITIONAL BACKGROUND 
Sustainable Evaluation Framework 
The FT Redevelopment program was identified as a priority pilot project for the Sustainable
Evaluation Framework. Miller Hull Partnership was hired to serve as designer and sustainability
facilitator. Three meetings were held in August and September between consultants and the Port
of Seattle project staff to create a project vision and identify opportunities. An eco-charette was
held on October 10, 2019 with various representatives from across the Port to identify preferred
project goals, targets, and priorities. The identified goals and strategies through the charette
were innovation, resilience, jobs/workforce, legacy/future, water, energy, carbon, and 
health/materials. 
Project goals and strategies were incorporated into design alternatives and evaluated further.
The sustainable design goals, alternatives, and recommendations were presented to project
Sponsors and to the Energy and Sustainability Committee on June 16th. Based on the
recommended design strategies, the MInC is targeting the Living Building Challenge Living
Certification. 
The project team is moving forward with refining design and costs. Further design decisions will
be incorporated into a final "Sustainable Design Strategy" for both projects and will be provided
to Commission during construction authorization. 
ATTACHMENTS TO THIS REQUEST 
None 

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

COMMISSION AGENDA  Action Item No. 8f                                   Page 9 of 9 
Meeting Date: May 11, 2021 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
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, 2017The Commission authorized $1,325,000 construction funding for the
demolition of the existing bank building and Net Sheds 7 and 8. This work has
notyetbeenadvertised forbids, per directionbythe Commission, pending finalization of
a GatewayBuildingtenant 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).