Digital recordings of meeting proceedings and meeting materials are available online – www.portseattle.org.

APPROVED MINUTES

COMMISSION SPECIAL MEETING SEPTEMBER 24, 2018

The Port of Seattle Commission held a special meeting, Monday, September 24, 2018, as a

commission retreat session. The retreat was held at the Conference Center at Seattle-Tacoma

International Airport, Seattle, Washington. Commissioners Bowman, Calkins, Felleman, Gregoire,

and Steinbrueck were present.

The meeting convened at 9:00 a.m.

Port staff participating in the retreat included Stephen P. Metruck, Executive Director; Stephanie

Jones Stebbins, Maritime Division Managing Director; Kelly Zupan, Seaport Finance and Budget

Director; Elizabeth Morrison, Corporate Finance Director; Dan Thomas, Chief Financial Officer;

Dave McFadden, Economic Development Division Managing Director; Michael McLaughlin, Cruise

Operations Director; Jeffrey Utterback, Real Estate and Economic Development Director; Pearse

Edwards, Acting Public Affairs Senior Director; and Rosie Courtney, Public Affairs Program

Manager.

A packet of supporting presentation materials was provided at the meeting.

Commissioners discussed prioritization of port capital projects and resources in relation to the 2019

port budget. Capital investment tradeoffs associated with cruise-related improvements and use of

tax levy funds versus bond issuance supplemented by maritime revenue were discussed. Cost-

sharing partnerships are an important consideration for capital investment in the cruise line of

business.

Capital investment on the Terminal 91 uplands and Fishermen’s Terminal redevelopment were

discussed, as was potential cost and timing considerations to bring shore power to ships moored at

port cruise facilities. Gentrification concerns and dynamics affecting appraisal of port real estate

assets were considered.

The declining value of the port’s assessed tax levy over time was presented. The port’s levy

assessment was as high as $75.9 million in 2008 and has been steady at $72 million since 2016. If

adjusted for inflation since 2008, the value today is $59 million. The statutory maximum

assessment allowed the port is greater than $100 million. Commissioners discussed strategies for

maintaining tax levy value over time.

P.O. Box 1209

Seattle, Washington 98111

www.portseattle.org

206.787.3000

PORT COMMISSION SPECIAL MEETING MINUTES Page 2 of 2

MONDAY, SEPTEMBER 24, 2018

Minutes of September 24, 2018, submitted for review October 17, 2018, and proposed for approval October 23, 2018.

Public opinion survey results were presented indicating public perceptions about key regional

issues, the reputation of the Port of Seattle, areas for improvement by the port, and potential

support for proposed investment of tax levy funds.

Strategies for development of assets in the port’s real estate portfolio were discussed. Properties

considered included Fishermen’s Terminal and the Terminal 91 uplands, as well as Terminal 106,

Pier 2, and the CEM site adjacent to Terminal 5.

Commissioners and Executive Director Metruck reviewed proposed changes to the port’s executive

organizational structure.

Commissioners commented on individual priorities they would like to be reflected in the 2019

budget. Examples included the following:

 A desire to see integrated partnering for regional tourism efforts;

 Public access to the waterfront at the Department of Fish and Wildlife’s fishing pier at

Terminal 86;

 Expanded parental leave and other potential benefit expansions such as support for

bringing infants to work and fertility and adoption coverage;

 Partnering with the Fair Work Center in 2019, especially as relates to ensuring benefit

compliance under the City of SeaTac Ordinance 13-1020 (Proposition One);

 Funding for anti-human-trafficking efforts;

 Redevelopment or disposal of the port’s Third Runway mitigation property in Auburn;

 Addressing lack of broadband service;

 Trade promotion and relationship building in Latin America;

 Development of a Port of Seattle export strategy;

 Pursuing development of a maritime high school;

 Promoting maritime careers to youth through experiential learning opportunities;

 Additional emphasis on ecology-tourism promotion;

 Support for a maritime innovation center;

 Support for port tree stewardship, including a non-aviation tree inventory and port tree

policy;

 Broadening the port’s art program and inventory;

 Implementation of Orca Task Force recommendations;

 Expansion of port internships to a year-round program;

 Application of an equity lens when promoting maritime careers to youth; and

 Increased participation in improving the health of Puget Sound program.

PORT COMMISSION SPECIAL MEETING MINUTES Page 3 of 3

MONDAY, SEPTEMBER 24, 2018

Minutes of September 24, 2018, submitted for review October 17, 2018, and proposed for approval October 23, 2018.

The commission retreat adjourned at 5:27 p.m.

Prepared: Attest:

Paul J. White, Commission Clerk Ryan Calkins, Commission Secretary

Minutes approved: October 23, 2018.