Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8c
ACTION ITEM
Date of Meeting
March 28, 2023
DATE: March 9, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Kelly Purnell, Capital Project Manager
Jessica Carlson, Senior Real Estate Manager
Melinda Miller, Director, Real Estate Asset Management
SUBJECT: Fishermen’s Terminal Bank Building (C-12) Demolition
Amount of this request:
$440,000
Total estimated project cost:
$496,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to advertise and execute a major
works construction contract to demolish the Fishermen’s Terminal Bank Building (C-12). This
request is for $440,000 of a total project cost of $496,000.
EXECUTIVE SUMMARY
The project will demolish the existing Fishermen’s Terminal Bank Building (Building C-12) which
is vacant and is unleasable due to the poor condition of the structure. The work will include
abatement of regulated materials, small amounts of material salvage such as the bank vault door,
demolition of the structure to existing slab, and removal of existing landscaping including curb
and gutter on the site. Capping of the utilities (water, sewer, electric) will be required. A handhole
will be installed for the electricity to provide for access for temporary power connection for a
construction job shack in future. Crushed rock will be placed in existing landscape area. No paving
or addition of any new impervious surface will be included in the work.
JUSTIFICATION
The Fishermen’s Terminal Bank Building has been slated for demolition since 2017 and was
vacant for several years before that. The building is currently in disrepair. Much of the interior
has been stripped out and has undergone partial regulated materials abatement of the interior.
Additionally, the building has suffered from repeated break-ins.
Originally, the property was to be redeveloped as part of the Gateway Building and the overall
Fishermen’s Terminal Long-term Strategic Plan. While that is still the anticipated future use of
COMMISSION AGENDA – Action Item No. 8c Page 2 of 4
Meeting Date: March 28, 2023
Template revised June 27, 2019 (Diversity in Contracting).
the site, the immediate need for the site is for uses as a construction laydown site for the
upcoming redevelopment of the Seattle Ship Supply Building into the Maritime Innovation Center
(MInC) in early 2024. The Bank Building site is within acceptable proximity to the MInC, has viable
utility hookups that can be utilized for temporary construction job shacks, and ample space for
materials storage during the MInC construction. The site would then be protected until such time
as the Gateway Building restarted, or another use of the property is determined.
Diversity in Contracting
This project is ideal for smaller WMBE construction firms to be the prime contractor. Therefore,
the project has a high WMBE aspirational goal of 15% to encourage participation of smaller firms
that may not often have an opportunity to be the General Contractor on larger projects.
DETAILS
The project will demolish the existing Bank Building (C-12) at Fishermen’s Terminal and prepare
the property as a temporary construction laydown site.
Scope of Work
Work will include the demolition of the existing structure to the slab, abatement of regulated
materials, minimal salvage of materials such as the bank vault door, removal of landscaping,
capping of existing utilities, and preparation of the site for construction laydown.
Schedule
Commission design authorization
N/A – originally authorized under U00412. Project
expensed after Gateway Building was Deferred.
Design completion
Q1 2023
Commission construction authorization
Q1 2023
Construction start
Q3 2023
In-use date
Q4 2023
Cost Breakdown
This Request
Total Project
Design
$0
$50,000
Construction
$446,000
$0
Total
$446,000
$496,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Defer demolition.
Cost Implications: Depending upon how long the demolition is deferred the cost could increase
significantly based on estimated average 6% construction escalation per year.
Pros:
None
COMMISSION AGENDA – Action Item No. 8c Page 3 of 4
Meeting Date: March 28, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Project would ultimately be more expensive due to escalation.
(2) A new demolition permit will need to be obtained as the current permit will not be able
to be extended again.
(3) Leaves a structure in place that is in poor condition and not useable.
(4) Would require identifying another construction laydown site for the construction of the
MInC and there are few reasonable alternatives.
This is not the recommended alternative.
Alternative 2 – Proceed with Bank Building demolition.
Cost Implications: $446,000 expense funds
Pros:
(1) Provides a construction laydown site for the construction of the MInC.
(2) Removes a structure in disrepair and eliminates potential security issues with break ins
and theft
(3) Utilizes existing demolition permit.
Cons:
(1) Requires expense funds to be utilized.
(2) May have minor impacts to the Fishermen’s Terminal operations.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$0
$580,000
$580,000
Current change
0
$(84,000)
$(84,000)
Revised estimate
0
$496,000
$496,000
AUTHORIZATION
Previous authorizations
0
$50,000
$50,000
Current request for authorization
0
$446,000
$446,000
Total authorizations, including this request
0
$496,000
$496,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project has been included in the 2023 approved budget in Maritime Non-Operations at an
estimated total project cost of $580,000.
COMMISSION AGENDA – Action Item No. 8c Page 4 of 4
Meeting Date: March 28, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Financial Analysis and Summary
Project cost for analysis
$496,000
Business Unit (BU)
Maritime Portfolio Management
Effect on business performance
(NOI after depreciation)
Non-Ops expense. The building currently generates no
revenue, and no revenue is expected from the additional
yard space.
IRR/NPV (if relevant)
No incremental revenue. The NPV is the present value of
the project cost.
CPE Impact
N/A
Future Revenues and Expenses (Total cost of ownership)
The building currently generates no revenue, and no revenue is expected from the additional
yard space.
ADDITIONAL BACKGROUND
This project was originally authorized under the C800525 FT Gateway Building project that was
canceled and expensed in 2022. The design for the demolition of the FT Bank Building (C-12) had
been developed to 90% under that project number. Construction Authorization for the
demolition of FT Bank Building (C-12) along with the demolition of Net Sheds 7 and 8 was
obtained on September 26, 2017 (Agenda item no. 6b). However, the project was not completed
prior to the Gateway Building project cancelation.
New project number U00703 was created for the specific purpose of the FT Bank Building (C-12)
Demolition. $50,000 in seed money was approved in Q3 2022 by the project sponsor and is being
used to have the engineer of record update and finalize the existing demolition design and
specifications and prepare the bid set.
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
September 26, 2017 – The Commission authorized construction for the demolition of FT Bank
Building (C-12) and Net Sheds 7 and 8.
