
PORT COMMISSION REGULAR MEETING MINUTES Page 6 of 7
TUESDAY, JULY 10, 2018
Minutes of July 10, 2018, regular meeting submitted for review September 5, 2018, and proposed for approval September 11, 2018.
The ocean economy is critical to the region’s economy. Fishing revenues, at approximately
$9.4 billion a year, make up the largest portion of regional maritime revenue. Fishing vessels are
also increasing in size. Accommodating larger and more numerous cruise and fishing vessels,
especially during shoulder seasons, is a future challenge for the maritime division.
In recreational marinas, the demand for moorage is high, with two-to-three-year waiting lists for
slips (depending on vessel size and the need for liveaboard status). Commissioners noted that
tenants at Salmon Bay Marina, which was previously privately owned, are now subject to the same
rules about slip transfer as publicly owned facilities, meaning that when vessels are sold, the
transfer of the lease cannot be included in the sale. Instead, the slip would be available to the next
eligible person on the waiting list.
Challenges for the Maritime Division include negotiating space for larger vessels, regional traffic
congestion, capital capacity, escalating construction costs, changing land use in Seattle, and the
global trade climate. Strengths include the region’s robust maritime industry, geographic proximity
to Alaska, and a strong track record in sustainability.
Commissioners requested future reports on the 20
th
anniversary of the cruise industry in Seattle
and the impact of the upcoming Alaskan Way Viaduct closure on cruise business. They suggested
a study session to clarify values and goals regarding recreational boating.
The five-year plan beginning in 2019 has the goal of positive net operating income by 2024. Lines
of business within the maritime division have varied income potentials. Fishing does not make a
great deal of revenue for the port, but has a highly positive impact on the local economy. Cruise is
profitable for the port as well as the local economy in general. Commissioners encouraged staff to
set goals for each line of business based on indirect revenue and other benefits, and encouraged
staff to document contributions to jobs, environmental efforts, and other non-financial benefits.
Strategies that will be employed to increase income include:
Finding new and expanding current revenue sources, such as the addition of a cruise
berth and industrial development.
Maximizing existing revenue streams through lease renewals, increasing guest
moorage, and aligning rates to suit market demand.
Limiting spending increases through process improvement, technology use, and cost.
Future capital projects for 2019-2023 were summarized. Proposed projects are Terminal 117
restorations, dock upgrades at Fishermen’s Terminal, and upgrades to berths 6 and 8 at Terminal
91. Tentative projects include Salmon Bay Uplands Development, Fishermen’s Terminal
Redevelopment Phase 1, Harbor Island Marina dock rehabilitation, and shore power at Pier 66.
The port can currently fund some, but not all, of these projects. An additional cruise facility is not
included in the current capital program.
10. QUESTIONS on REFERRAL to COMMITTEE – None.