Template revised January 10, 2019.
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
COMMISSION AGENDA – Action Item No. 8f Page 2 of 8
Meeting Date: March 8, 2022
Template revised June 27, 2019 (Diversity in Contracting).
• 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.
COMMISSION AGENDA – Action Item No. 8f Page 3 of 8
Meeting Date: March 8, 2022
Template revised June 27, 2019 (Diversity in Contracting).
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 energy-
efficient 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
COMMISSION AGENDA – Action Item No. 8f Page 4 of 8
Meeting Date: March 8, 2022
Template revised June 27, 2019 (Diversity in Contracting).
• 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
COMMISSION AGENDA – Action Item No. 8f Page 5 of 8
Meeting Date: March 8, 2022
Template revised June 27, 2019 (Diversity in Contracting).
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
Development design)
Design start
Land Use Permit
Building Permit
Commission construction authorization
Construction start
In-use date
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
COMMISSION AGENDA – Action Item No. 8f Page 6 of 8
Meeting Date: March 8, 2022
Template revised June 27, 2019 (Diversity in Contracting).
Sponsors and to the Energy and Sustainability Committee on June 16
th
. 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.
COMMISSION AGENDA – Action Item No. 8f Page 7 of 8
Meeting Date: March 8, 2022
Template revised June 27, 2019 (Diversity in Contracting).
(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
(NOI after depreciation)
The property is expected to contribute approximately
$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
COMMISSION AGENDA – Action Item No. 8f Page 8 of 8
Meeting Date: March 8, 2022
Template revised June 27, 2019 (Diversity in Contracting).
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.