Item No.: 7a_Supp
Date of Meeting: December 6, 2011

Fishermen's Terminal 20-Year
Plan and Net Shed Briefing
December 6, 2011

• 25+ acres of dry land
• 21 existing buildings
• 690 parking spaces
• "General Industrial" zoning

11/16/11

Fishermen's Terminal 20 Year Plan and Net
Sheds Compliance Briefing, Dec. 6, 2011

Slide 2

Plan Scope and Goals
• Scope: An upland facility plan to meet the needs of our
customers and provide a reasonable return to the Port.
• Planning Goals:
1. Support the fishing industry
2. Generate a financial return that justifies the
investment
3. Achieve maximum utilization of assets
4. Align with the Port's triple bottom line mission

11/16/11

Fishermen's Terminal 20 Year Plan and Net
Sheds Compliance Briefing, Dec. 6, 2011

Slide 3

Background
1.
2.
3.
4.

Asset Condition Assessment
Current conditions and constraints analysis
Outreach program
Net Sheds Assessment
1. Code Compliance work
2. Preliminary models for net sheds
5. Market demand study of new uses under current code and hypothetical
rezone to Industrial Commercial
6. Developed scenarios that include either:
a) a waterfront development pad near Seattle Ship Supply Building
b) a street-front development pad near Emerson entrance, or
c) both.

11/16/11

Fishermen's Terminal 20 Year Plan and Net
Sheds Compliance Briefing, Dec. 6, 2011

Slide 4

Planning Constraints
• City land use codes - base zone and shorelines
management overlay
• Core functions critical to support fleets
- Net sheds
- Open yard area
- Net repair area
• Poor soils for construction

• Port capital constraints

11/16/11

Fishermen's Terminal 20 Year Plan and Net
Sheds Compliance Briefing, Dec. 6, 2011

Slide 5

Current land use code *graphic

11/16/11

6

Outreach Program
• Fishermen's Terminal Advisory Committee (FTAC)
- Subcommittee created for ongoing advice

• One-on-one interviews with a cross section of fishers
• Customer open house

• Postcard survey to fishers
• Postcard survey to upland tenants
• Presentations to community organizations
• Presentations to Seattle industrial groups

11/16/11

Fishermen's Terminal 20 Year Plan and Net
Sheds Compliance Briefing, Dec. 6, 2011

Slide 7

Outreach Feedback
• Maintain industrial character
• Avoid operating conflict of uses
• Diverse opinions and needs
• Suggested new uses (e.g. covered net repair,
covered work area, smokehouse, cold storage,
conference center, etc.)

11/16/11

Fishermen's Terminal 20 Year Plan and Net
Sheds Compliance Briefing, Dec. 6, 2011

Slide 8

Concept Screening Summary

Legend
> -- Concept
passes the screen
for further
evaluation
X - Concept does
not pass the
screen
11/16/11

Fishermen's Terminal 20 Year Plan and Net
Sheds Compliance Briefing, Dec. 6, 2011

9

Concept Screening Summary

Legend
> -- Concept
passes the screen
for further
evaluation
X - Concept does
not pass the
screen
11/16/11

Fishermen's Terminal 20-Year Plan and Net
Shed Code Compliance Briefing, Dec. 6, 2011

10

Development Zones
As Used in Financial Model

Waterfront
Yard
Parking Lot

Nordby
Building
Emerson Net
Sheds

Demo and
lease Seattle
Ship Supply
pad

Port Investment: $10.6 M
NPV : $2.16 M - $4.9 M

Composite Scenario 1: Maintain

20K sf
industrial
flex

5K sf industrial flex
15K sf retail

Port Investment: $19.1 M
NPV: $1.56 M - $5.6 M

Composite Scenario 2: Current Code, Port Investment
l

Ground lease
boundaries

Port Investment: $6.62 M
NPV: $5.56 M - $8.75 M

Composite Scenario 3: Current Code, Ground
Lease

Ground lease
boundaries

Port Investment: $8.55 M
NPV: $3.49 M - $6.35 M

Composite Scenario 4: Current Code, Ground
Lease

FISHERMEN'S TERMINAL 20 YEAR PLAN
Summary Table

Composite #1:

Composite #2:

Maintain

Current Code, Major Investments

#1 Maintain w/Demo

#3 Ind Flex/Retail

#2 Ground Lease

#1 Maintain w/Demo

Port Investment

$4,572,970

$13,169,264

$1,052,152

$4,572,970

NPV

($798,864)

($2,252,288)

$2,221,064

($798,864)

Option

#1 Maintain

#1 Maintain

#1 Maintain

#1 Maintain

Port Investment

$1,316,846

$1,316,846

$1,316,846

$1,316,846

NPV

$1,615,829

$1,615,829

$1,615,829

$1,615,829

Option

#1 Maintain

#1 Maintain

#1 Maintain

#2 Ground Lease

Port Investment

$2,057,270

$2,057,270

$2,057,270

$462,835

NPV

$59,655

$59,655

$59,655

$924,151

Option

#1 Maintain

#1 Maintain

#2 Ground Lease

#2 Ground Lease

Port Investment

$2,604,272

$2,604,272

$2,197,898

$2,197,898

NPV

$640,027

$640,027

$1,214,388

$1,214,388

Port Investment

$10,551,359

$19,147,653

$6,624,167

$8,550,549

11.0%

9.4%

17.90%

13.2%

$2,160,150

$1,555,380

$5,561,821

$3,487,051

$1,516,648

$63,224

$5,110,936

$2,955,504

$4,896,245

$5,600,852

$8,745,055

$6,345,387

Zone
Waterfront Yard - Current Code

Option

Nordby Building

Emerson Net Sheds

Parking Lot

Total

IRR
NPV - 10% Discount Rate
NPV - Zone Specific

NPV - 7% Discount Rate

Composite #3:

Composite #4:

Ground Lease Waterfront Yard & Bank Building Ground Lease Emerson Net Sheds & Bank Building

Development Questions
• Do you replace aging buildings when the net
present value is similar to maintaining existing
buildings?
• Is ground-leasing for private development an
appropriate means of redevelopment?

11/16/11

Fishermen's Terminal 20 Year Plan and Net
Sheds Compliance Briefing, Dec. 6, 2011

Slide 17

FT Net Sheds Building Code Compliance
•
•
•
•
•
•
•
•
•
•

11/16/11

Buildings vary in age, size, construction, and layout
Fishermen's storage needs have changed over time
Port has been working with tenants since 2006 on storage/usage policies
Port cited by City of Seattle Fire Department in 2009 for violation of fire & building codes
Port has since worked closely with SFD and DPD to address City's concerns
Staff implemented a Pilot Storage Program and other improvements
Port hired a fire protection consultant to interpret codes and determine code compliant storage
options
City concurred with four options and staff completed initial evaluation
Net shed buildings must be improved to achieve full code compliance
Final project scope and schedule to be approved by the City

Fishermen's Terminal 20 Year Plan and Net
Sheds Compliance Briefing, Dec. 6, 2011

Slide 18

Preliminary Estimated Code Compliance Project Costs
•
•

Final project cost and duration are dependent on degree of construction phasing
Further evaluation needed to determine best method for moving/temporarily storing
fishermen's locker contents during construction

•

Option 1: $2.0 M

•

Option 2: $8.4 M to $9.1 M

•

Option 3: $5.8 M to $6.4 M

•

Option 4: $9.3 M to $10.0 M

11/16/11

Fishermen's Terminal 20 Year Plan and Net
Sheds Compliance Briefing, Dec. 6, 2011

Slide 23

Recommended Code Compliance Option
Option #3 recommended for the following reasons:
•
•
•
•
•
•

Most closely matches fishermen's current use
Allows greatest efficiency and flexibility in meeting customers' storage needs
No required segregation and separation of stored commodities
No challenging requirements for staff and customers to maintain and enforce longterm code compliance
No need for overall building master planning i.e. individual locker configurations are
independent of one another
Least long-term code compliance liabilities and costs

Next Steps
• Refine Net Shed Code Compliance
implementation plan and costs
• Refine and revise development scenarios to
review with stakeholders
• Return to Commission for authorization of net
shed code compliance project and development
plan

11/16/11

Fishermen's Terminal 20 Year Plan and Net
Sheds Compliance Briefing, Dec. 6, 2011

Slide 25