COMMISSION 
AGENDA MEMORANDUM                        Item No.          8f 
ACTION ITEM                            Date of Meeting       March 8, 2022 
DATE:     February 21, 2022 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Dave McFadden, Managing Director Economic Development 
Kyra Lise, Director Real Estate Development 

SUBJECT:  Fishermen's Terminal Development Program - Maritime Innovation Center (CIP
#C801084) 
Amount of this request:                $5,718,840 
Total estimated project cost:          $19,800,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to invest at least $5,718,840 into
the Maritime Innovation Center (MInC) to provide required matching funds for a United States
Economic Development Administration grant in the amount of $5,000,000.
This authorization commits Port funding to the MInC project if EDA approves the Port of Seattle's
grant request and executes a contract with the Port for the grant funding.
EXECUTIVE SUMMARY 
As part of efforts to redevelop Fishermen's Terminal, staff is working to develop a Maritime
Innovation Center that will help the region's maritime industry adopt advanced technologies and
stimulate innovative entrepreneurship. Successful innovation centers can help sustain maritime
industries and help modernize operations and key lines of business. This is a significant
opportunity for the region: 
The global "Ocean Economy" is growing. It is valued on a conservative basis by the
Organization for Economic Cooperation and Development (OECD) at $1.5 trillion (2010)
and growing to $3.0 trillion by 2030 
The Seattle region is rich in maritime resources and heritage, but this is under
recognized by the general public and policy makers being overshadowed by high-tech.
The maritime industry is also not particularly innovative 
Public and private partners are interested in the Maritime Innovation Center as focal
point to help advance: 1) electrification; 2) ship and vessel design innovation; 3) marine
renewables; and 4) seafood product development 

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 8f                                   Page 2 of 8 
Meeting Date: March 8, 2022 
Promoting knowledge transfer, business incubation, and workforce development are
the biggest needs in terms of addressing maritime innovation challenges (and
opportunities). 
Staff recently applied for a $5 million grant from the US Economic Development Administration
(EDA) to help fund development of the Maritime Innovation Center. To move this grant forward
through EDA's review process, the Port needs to authorize that our funding for the MInC is
available and dedicated to the project.
BACKGROUND 
The approval of the requested authorization will support the completion of the renovation and
historic restoration of the Port's former Seattle Ship Supply Building to house the approximately
15,000 SF Maritime Innovation Center. The MInC will help drive long term sustainability of the
region's maritime industry. The project aligns with the Port of Seattle's Century Agenda goals to
support and strengthen the region's economy, while maintaining the Port's triple bottom line  
balancing environmental, financial, and societal goals. 
With this project the Port is also committing to showcase a sustainable and productive maritime
economy that protects the very fishing industry it serves, in alignment with the Port of Seattle's
Century Agenda goals to support and strengthen the region's economy, while maintaining the
Port's triple bottom line  balancing environmental, financial, and societal goals. 
Prior to coming to the Commission for MInC design funding in May 2019, the Port: 
Completed a feasibility study in 2018 to garner community input on maritime innovation,
identify  potential  facility  services,  operating  options,  space  and  physical  planning
considerations and facility revenue/expense assumptions. 
Created an advisory committee to guide development of maritime innovation center; 
Contracted with DNVGL to update MInC business plan including revised revenue/expense
projections, preferred site/location analyses, and recommended operating benchmarks 
At this point the Port has advanced the following MInC design work: 
Conducted an Eco-Charette to provide context for a comprehensive evaluation of preferred
sustainability objectives for the various projects within the FT Redevelopment program. 
Completed 60% design and completed an updated project cost estimate based on these 
building designs and preferred sustainability options. 
Presented alternative designs and recommendations to the Energy and Sustainability
Committee at 30% design. 
Determined a series of feasible environmental sustainability objectives that have been
incorporated into the project's construction scope. 
By taking this action, the Port Commission is committing to complete the construction of the
Maritime Innovation Center, and potentially entering a financial partnership with the United
States Economic Development Administration, without allocating new resources at this time. 

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

COMMISSION AGENDA  Action Item No. 8f                                   Page 3 of 8 
Meeting Date: March 8, 2022 

Scope of Work 
The Port of Seattle is developing an innovation center at Fishermen's Terminal that can support
and drive entrepreneurship and innovation within the maritime sector. The Port is renovating its 
100+ year old Seattle Ship Supply Building for the new home for this incubator, transforming it
into a resilient, sustainable facility that can support both entrepreneurs and established
companies for the next 100 years. Fishermen's Terminal is in one of the few remaining industrial
areas within the city of Seattle at Ballard-Interbay, directly west of the Ballard Bridge and east of
the Hiram M. Chittenden Locks along the Lake Washington Ship Canal. The North Pacific
commercial fishing fleet operates out of the freshwater terminal. 
Built in 1918, the Seattle Ship Supply Building (Maritime Innovation Center) is one of the oldest
structures on the Fishermen's Terminal site. The original building's heavy timber structure is a
classical basilica form with a central two-story nave and gable roof, flanked by two side shed
structures. At over 45 FT at the top of the gable, Seattle Ship Supply is the tallest existing building
on the Fishermen's Terminal site and is prominently visible from the Ballard Bridge. The existing
building suffers from years of ad hoc modifications and needs substantial improvements to meet
current building codes. 
The Port recognizes the potential to honor the history of Fishermen's Terminal by restoring and
enhancing the original structure and providing spaces that support the next generation
inventions that drive the competitiveness of Washington State's Blue Economy. The building will
provide approximately 15,000 SF of light industrial spaces, meeting rooms, classrooms and event
space that will bring together leaders from education, industry, and government to address both
challenges and opportunities within the maritime cluster. The facility will provide classes,
technical assistance, and research and development that ultimately helps the industry innovate
and sustain its competitive advantage. With the goal of being "the greenest and most energyefficient
port in North America" the Port of Seattle has set ambitious but achievable targets in
energy efficiency, stormwater management and emissions reduction. To meet these goals while
setting a new standard of environmentally sustainable development for ports around the world,
Fishermen's Terminal is pursuing the world's most rigorous green building certification  The
Living Building Challenge. 
A holistic and performance-based rating system, the LBC requires projects create regenerative
buildings that address site, water, energy, materials and even equity related challenges.
Certification is only awarded once a building has proven its net positive energy and water
performance after a year's worth of building operations.
Below are just some of sustainable features of The Fishermen's Terminal project. 
To achieve net positive energy and reduce emissions: 
On-site photovoltaic energy production 
No combustion, all-electric building operation to support greenhouse gas reduction 

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

COMMISSION AGENDA  Action Item No. 8f                                   Page 4 of 8 
Meeting Date: March 8, 2022 
Battery backup system to add resiliency for facility operations 
Electric vehicle charging stations, bike parking and shower facilities 
To demonstrate the commitment to restoring water quality and improving aquatic life on
industrial property: 
On-site stormwater treatment and detention 
Rainwater catchment for irrigation, toilet flushing and potable water use 
On-site grey water and black water treatment 
To improve the health and wellbeing of our community: 
Daylighting and natural ventilation to reduce energy demand and provide a healthier
interior environment 
Reduced chemicals of concern 
Biophilic design that incorporates strategies to enhance the human/nature connection
and reinforces the connection to place 
Community education and outreach 
Urban agriculture 
To reduce emissions and build toward the circular economy 
Reclaimed and FSC-certified wood Regional materials 
Landfill waste diversion 
Equitable and diverse workforce 
Community Outreach and Communications 
Initial community outreach and engagement around the Maritime Innovation Center and the 
Gateway Building unfolded during the Port's Fishermen's Terminal Master Planning process in
2016 and 2017. Staff hosted multiple planning sessions, open houses and stakeholder meetings
as part of developing new plans for FT. During the process, stakeholders cited a need for light
industrial facilities with smaller spaces for maritime manufacturers and suppliers. Several
participants also suggested that FT develop space for meeting rooms/conference center. 
Extensive outreach and engagement also supported the Maritime Innovation Center planning
project (2016-2021): 
Hosted an Open House on Fishermen's Terminal in May 2021 that focused on the MInC's
development and other terminal improvements 
Hosted a Strength, Weakness, Opportunities and Threats (SWOT) workshop with 25
maritime stakeholders 
Developed on online survey that solicited input from 150+ stakeholders 
Hosted outreach meetings with partners in Anacortes and Port Hadlock 
Interviewed 35 Maritime stakeholders (28 distinct organizations) 
Facilitated a design eco-charrette focused on adaptive reuse of the Port's Ship Supply
building 

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

COMMISSION AGENDA  Action Item No. 8f                                   Page 5 of 8 
Meeting Date: March 8, 2022 
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 the project.
In pursuing the LBC credential, the project will satisfy performance areas that include Equity and
Inclusion, with diversity in contracting being one of the metrics. The 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. 
Schedule 
Activity 
Commission design authorization (initial FT      2016 Quarter 4 
Development design) 
Design start                                       2019 Quarter 2 
Land Use Permit                                2021 Quarter 4 
Building Permit                                  2022 Quarter 4 
Commission construction authorization          2022 Quarter 4 
Construction start                                2023 Quarter 3 
In-use date                                       2025 Quarter 1 
Cost Breakdown                                      This Request          Total Project 
Design/Permitting                                                $0            $3,150,000 
Construction                                                      $0           $16,650,000 
Total                                                                   $0            $19,800,000 
SUSTAINABLE EVALUATION FRAMEWORK 
The FT Development project 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, process, 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


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

COMMISSION AGENDA  Action Item No. 8f                                   Page 6 of 8 
Meeting Date: March 8, 2022 
Sponsors and to the Energy and Sustainability Committee on June 16th. Based on the
recommended design strategies, the Maritime Innovation Project is targeting LBC 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 the Maritime Innovation Center will
be provided to Commission before the construction funding authorization. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do nothing: pass on Authorization for Construction and associated EDA grant 
Cost Implications: 
Loss of $5,000,000 federal funding towards completion of Maritime Innovation Center project. 
Pros: 
None. 
Cons: 
(1) Loses potential funding that could help leverage Port funding for the MInC. 
This is NOT the recommended alternative. 
Alternative 2  Postpone Authorization for Construction to when Design and Permitting are close
to completion (est. 2022 Quarter 4). 
Cost Implications: 
Loss of $5,000,000 federal funding towards completion of Maritime Innovation Center project. 
Pros: 
(1) Commission is not committing to fund the project in the future without final permits or
final cost estimates. 
Cons: 
(2) Time-sensitivity expressed by EDA suggests that they will not approve grant request
unless this authorization is provided in a timely manner. 
This is NOT the recommended alternative. 
Alternative 3  Authorize funding needed to match EDA grant funds requested 
Cost Implications: 
Receiving contribution in the amount of $5,000,000 towards the total capital project costs
reduces the Port's total project costs for completing the Maritime Innovation Center. 
Pros: 
Significant monetary contribution to the completion of the project and achievement of the
following: 
(1) Support the recovery of the maritime sector as we move out of the economic crisis
brought on by COVID-19 global pandemic. 
(2) Retain Port capital for other priority projects and financial initiatives. 

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

COMMISSION AGENDA  Action Item No. 8f                                   Page 7 of 8 
Meeting Date: March 8, 2022 
(3) Implement FT Long-Term Strategic Plan objectives of supporting fishing and maritime
clusters as well as improving long-term financial viability of FT. 
Cons: 
(1) Commission is committing to fund the project in the future, without final permits or final
costs. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary                  Capital     Expense           Total 
COST ESTIMATE 
Previous estimate (60% design level estimate)      $19,800,000           $0     $19,800,000 
Current change                                             $0           $0              $0 
Revised estimate (60% design level estimate)       $19,800,000           $0     $19,800,000 
AUTHORIZATION 
Previous authorizations                              $3,150,000           $0      $3,150,000 
Current request for authorization                    $5,718,840           $0      $5,718,840 
Total authorizations, including this request           $8,868,840           $0      $8,868,840 
Remaining amount to be authorized              $10,931,160          $0    $10,931,160 
Annual Budget Status and Source of Funds 
The project has been included in the approved 2022-2026 CIP with a total project cost of
$19,800,000 and assumes a $5,000,000 contribution from WA Department of Commerce. 
The Port-funded portion of this project will be funded by the Tax Levy. 
Predesign Financial Analysis and Summary 
Project cost for analysis              $11,000,000 (assumes $5 million WA State contribution) 
Business Unit (BU)                  Maritime Portfolio Management 
Effect on business performance    The property is expected to contribute approximately
(NOI after depreciation)             $180K to annual NOI before deprecation. The project will
increase annual depreciation expense by approximately
$220K per year. 
IRR/NPV (if relevant)                NPV: ($7.7M) 
IRR: 1.7% 
CPE Impact                       N/A 



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

COMMISSION AGENDA  Action Item No. 8f                                   Page 8 of 8 
Meeting Date: March 8, 2022 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
May 11, 2021  Commission authorized 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 the execution of 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. 
March 23, 2021 - Commission received a briefing on the Fishermen's Terminal Redevelopment. 
December 8, 2020  Commission authorized acceptance of $5 million Capital grant from the State
of Washington's Department of Commerce.
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 8, 2019  Commission received a briefing regarding Maritime Blue Plan and the Maritime
Innovation Center. 
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).