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COMMISSION
AGENDA MEMORANDUM
Item No.
6k
ACTION ITEM
Date of Meeting
August 11, 2020
DATE: August 1, 2020
TO: Stephen P. Metruck, Executive Director
FROM: Dave McFadden, Managing Director, Economic Development Division
SUBJECT: Economic Recovery Contract with Maritime Blue
Total contract request:
$300,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a joint partnership
agreement with Maritime Blue, a non-profit agency, to advance economic recovery by offering
a maritime accelerator initiative, hosting maritime blue forums and developing a prioritized
strategic plan and budget for 2021-2022. The contract would be for two years at the rate of
$150,000 annually. Staff is also requesting that the commission determine a competitive
process is not appropriate or cost effective and exempt this contract from a competitive
process consistent with RCW 53.19.020(5).
EXECUTIVE SUMMARY
Over the past year the Port of Seattle has partnered with Maritime Blue (MB) to advance
maritime innovation initiatives. MB piloted a successful business accelerator program,
identified access to capital issues facing the maritime industry and worked with the Port on
greenhouse gas reduction strategies. MB also managed the Youth Maritime Collaborative
through additional agreements with the Port of Seattle and the City of Seattle.
Based on the success of these projects, the Port wants to promote economic recovery by
working with MB in several key areas over the next year:
• implement
second maritime business accelerator program;
• a prioritized strategic plan and budget for 2021-2022; and
• support Blue forums and events that advance the State’s Blue Economy strategy.
Investing in this partnership supports the Port’s Century Agenda objectives to be the greenest
and most energy efficient Port in North America and to responsibly invest in the economic
growth of the region and all its communities.
COMMISSION AGENDA – Action Item No. 6k
Meeting Date: August 11, 2020
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BACKGROUND
Last year the Port signed an MOU with Maritime Blue to formalize a partnership around
implementation of Washington State’s Blue Economy strategy. To support this partnership the
Port contracted with MB to develop a pilot maritime innovation accelerator program, address
access to capital issues impacting the maritime industry, and to collaboratively work to reduce
maritime greenhouse gas emissions. The Port provided $200,000 to support these projects.
Maritime Blue developed a maritime accelerator program that supported 11 emerging
maritime companies through a partnership with We Works innovation labs. The accelerator
program was a big success. Participating companies made tangible progress with their ventures
and the accelerator generated interest from research institutions, established maritime
companies, government agencies, media outlets and financial investors.
To address access to capital issues impacting the maritime industry, MB researched potential
funding structures that could provide investment capital to support growth in the Blue
Economy throughout Washington State. The study MB completed presents frameworks and
strategies to fill funding gaps from a variety of investment sources, including public and private
capital.
To advance maritime industry greenhouse gas reduction, MB supported the Port’s Waterfront
Electrification Strategy. MB also convened a “Blue Forum” in partnership with US Dept. of
Energy and Pacific Northwest National Laboratory, entitled, “R&D Pathways for Maritime
Energy Solutions”. The event brought together state and federal research institutions with
maritime industry leaders to align research, operational and commercial needs for
decarbonization.
Over the past year MB also supported the Port’s Maritime Innovation Center advisory
committee. This group met quarterly to review progress on the Port’s innovation center capital
project. MB sent out meeting notices, took minutes and helped Port staff develop meeting
agendas, including stakeholder input to guide design and operations of the future Center.
Based on the success of these initiatives and the Port’s desire to advance economic recovery,
staff is recommending to contract with Maritime Blue for two years. This contract would be for
one year with a one-year renewal option (dependent on funding available and positive results).
This second-year agreement with Maritime Blue would:
• advance another maritime business accelerator program (2
nd
round);
• a prioritized strategic plan and budget for 2021-2022; and
• support Blue forums and events that advance the State’s Blue Economy strategy.
These initiatives along with MB’s continued work on the Youth Maritime Collaborative
constitute the 2020-2021 focus for the Port of Seattle’s partnership with Maritime Blue based
on the Memorandum of Understanding executed between the two organizations.
COMMISSION AGENDA – Action Item No. 6k
Meeting Date: August 11, 2020
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JUSTIFICATION
State Representative Gael Tarleton provided a compelling vision for Washington’s maritime
industry last year when the state strategy was finished:
“Washington’s maritime, fishing, and recreational boating industries are the backbone of the
most trade-centric economy in the country. Tens of thousands of family-wage jobs in the
maritime trades have transformed communities throughout our region and state. Now, we must
find paths to give future generations of Washingtonians access to these jobs and opportunities.
New technologies require new skills. Innovative strategies that integrate educational programs
and skill-based workforce development will ensure that we retain and expand our region’s
unique maritime expertise. By working together, we can have smart, green ports that attract
business from all over the world…and thousands of jobs in a clean-trade maritime economy that
works for all of us.”
Recently staff conducted market research and confirmed Maritime Blue to be the only
Maritime cluster organization with the capability and focused support network to implement
this partnership with the Port. At this time, no other maritime nonprofit organization or public
agency has the staff expertise, breadth of advisory members or focus that will allow us to work
in partnership to pilot a virtual maritime business accelerator program and advance key
elements of Washington State’s Strategy for a Blue Economy. Maritime Blue provides unique
skills and knowledge required by this agreement, such as knowledge of maritime investment
and finance markets, which complements and augments that which the Port possesses.
Both organizations have initiated projects that have engaged maritime businesses, education
and research institutions, and government agencies who have contributed substantially to
advance the Blue Economy strategy. In 2018-2019, $1.27 million in funding was secured to
support development of the strategy, support community engagement, and help advance the
cluster organization. In 2019, Maritime Blue has raised $100,000 in memberships and
sponsorships. The organization is also waiting to see if they will receive another Economic
Development Administration grant to continue advancing Maritime BIue initiatives. This level
of involvement from colleagues across the state demonstrates considerable support for both
the Port of Seattle’s and Maritime Blue’s innovation and sustainability initiatives.
Investing in this partnership supports the Port’s Century Agenda objectives to be the greenest
and most energy efficient Port in North America and to responsibly invest in the economic
growth of the region and all its communities.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1) Do not authorize agreement with Maritime Blue
Pros:
• Reduces specific budget request by up to $150,000 a year, which could be used for
other initiatives.
COMMISSION AGENDA – Action Item No. 6k
Meeting Date: August 11, 2020
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• Provides Port budget relief during challenging times.
Cons:
• Momentum around WA Strategy for Maritime Blue implementation reduced.
• First year accelerator’s impacts and momentum likely lost or diminished.
• Opportunity to build maritime capital networks diminished.
Alternative 2) – Authorize a $300,000 two-year agreement with Maritime Blue to implement
initiatives that advance Port priorities and Washington State’s strategy for a Blue Economy at a
cost not-to-exceed $300,000.
Pros:
• Investment in Maritime Blue advances economic recovery within the maritime industry.
• Advancing a maritime accelerator ramps up maritime entrepreneurial initiatives that are
instrumental to the success of the maritime innovation center.
• Port financial investments in Maritime Blue will be leveraged by other public and private
members and sponsors.
Cons:
• More time evaluating accelerator options could be helpful.
• Maritime venture financing programs are still nascent and need improvement.
• There are other maritime accelerator programs available (outside Seattle).
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$0
$300,000
$300,000
AUTHORIZATION
Previous authorizations
0
0
0
Current request for authorization
0
0
0
Total authorizations, including this request
0
0
0
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
Annual budget request is for $150,000. The source of funds is the King County tax levy.
ATTACHMENTS TO THIS BRIEFING
(1) Presentation slides
COMMISSION AGENDA – Action Item No. 6k
Meeting Date: August 11, 2020
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PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
July 14, 2020 – Commission received a briefing on Maritime Blue’s first year results
July 23, 2019 – The Commission authorized the Executive Director to sign Memorandum of
Understanding with non-profit Maritime Blue maritime cluster organization
May 14, 2019 – The Commission authorized design funding for the Maritime Innovation
Center (Historic Ship Supply Building)
January 8, 2019 – Commission received a briefing regarding Maritime Blue Plan and the
Maritime Innovation Center.
