Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
10b
ACTION ITEM
Date of Meeting
October 10, 2023
DATE: September 11, 2023
TO: Stephen P. Metruck, Executive Director
FROM: David McFadden, Managing Director, Economic Development Division
Kyra Lise, Director Real Estate Development
Stefan Wynn, Capital Project Manager
SUBJECT: T91 Uplands Development Additional Design Authorization (CIP #C800158)
Amount of this request:
$4,500,000
Total estimated project cost:
$84,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to approve additional design
funding to execute the remaining service agreements for professional design and port-related
costs for all project elements and improvements necessary to complete design, and inclusion of
a 1 percent art program investment, for the T91 Uplands Development Project in the amount of
$4,500,000 and a total estimated project cost of $84,000,000. (CIP# C800158)
EXECUTIVE SUMMARY
Background:
In February of 2019, the Commission authorized Design Funding for the overall Phase I and Phase
II master planning, environmental review, permitting and full design services for the completion
of Phase I. This work was based off a site development evaluation completed in 2017 and utility
and infrastructure report completed by KPFF in 2018.
• In 2021 after completion of a subsurface investigation in the Phase I area and the
development of the design to 10%, the design consultant services were discontinued.
• In Q4 of 2021 a contract with Mackenzie Engineering was executed to complete this scope
of work.
• Additional subsurface site investigations to the Phase I and Phase II areas and validation
to the KPFF infrastructure report identified additional infrastructure and utility upgrades
that would be required from the initial assumptions. The Phase I buildings square footage
were also increased in size by 20% per updated market analysis.
• To date the project has been developed to 60% design, the State Environmental
Protection Act (SEPA) determination of non-significance has been issued and the Major
COMMISSION AGENDA – Action Item No. 10b Page 2 of 8
Meeting Date: October 10, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Phased Development Plan permit (MPD) described below has been submitted and is
currently under review by the Seattle Department of Construction & Inspections (SDCI).
The total anticipated project cost is estimated to be $84,000,000. The Port of Seattle’s 1% Art
Program Policy is included in the projected total project cost. This request for additional design
funding is to complete the design, permitting, and documentation to take this now larger project
through the advertisement and bidding process.
Project Summary:
The Port’s Economic Development Division (EDD) plans to construct upland light industrial
building space (storage, warehouse, manufacturing) within the northeast portion of Terminal 91
(T91) to support maritime industries and the maritime supply chain in the Ballard Interbay
Manufacturing Industrial Center (BINMIC).  Major project components of the T91 Uplands
Development that are included in the Major Phased Development Plan (MPD) include the
following: Phase I, T91 utility infrastructure improvements, and Phase II.
• Phase I premises: Approximately 6 acres in size, located at the northeast portion of T91,
will consist of developing approximately 120,000 SF of industrial building and associated
amenities.
• T91 utility infrastructure improvements: In New telecom/Data distribution, a new Sewer
connection, Stormwater upgrades, and Electrical Upgrades are required for the Phase I
buildings and the pad-ready development of Phase II.
• Phase II premises: In the future years, up to approximately 9 acres in the Phase II area will
involve the construction of up to 300,000 SF of additional industrial building space. The
improved utility infrastructure will enable the potential for a built-to-suit or ground lease
development for this phase.
JUSTIFICATION
The T91 Uplands Development addresses the shortage of light industrial property in
consideration of the current market demand and in alignment with Seattle’s Industrial Maritime
Strategy and Century Agenda Goals. It aims to preserve and enhance industrial land that
contributes to local economic impact of maritime-focused operations, and diversify uses and
assets, while balancing environmental, financial, and community stewardship goals of the Port
of Seattle.
The development project also supports the following Economic Development Division and
Maritime Division goals, through a set of guiding principles developed in conjunction with a Port-
conducted stakeholder outreach program, and Port project team effort:
(1) Create New Economic Impact on Port Land
Continue to strengthen and grow the economic value of the maritime cluster, including the
number of local jobs and business revenues.
COMMISSION AGENDA – Action Item No. 10b Page 3 of 8
Meeting Date: October 10, 2023
Template revised June 27, 2019 (Diversity in Contracting).
a.
Anchor the maritime industrial workforce in Seattle by fulfilling tenant mix goals.
b. Meet square feet developed, jobs and associated wage rate goals.
c. Meet target occupancy rate, and asset utilization.
d. Create flexible spaces to accommodate multiple lines of business and a range of
users/tenants.
e. Meet revenue goals for long term investment.
f. Add value to the overall equity component of the land; increase appreciation of Port
land.
(2) Support Flexible & Sustainable Industrial Development
Align Seattle’s Industrial and Maritime Strategy with key climate and environmental
protection goals, securing integration with social and economic dimensions
of sustainability.
Financial Sustainability:
a. Develop a creative, cost-effective solution within the given project budget. Achieve
good value over the life cycle of the asset.
b. Find a balance between cost and environmental benefits that reconciles desired
tenant profile with a sustainable design approach.
c. Create new revenue and new jobs for maritime and maritime supply chain industries.
d. Ground design choices in economic sustainability and market influence data; identify
and target preferred tenants’ need and achieve a product that is affordable.
Innovative Environmentally Conscious Practices:
a. Achieve energy savings and water consumption reduction. Consider efficiency and
conservation approaches.
b. Use construction materials and methods that minimize harm to the surrounding
ecosystem and reduce carbon footprint.
c. Design resilient facilities that can retain structure and functions while adjusting to
environmental (e.g., climate adaption) and socio-economic changes.
d. Prioritize re-use of existing Port assets in design.
Operational Improvement:
a. Leverage opportunities to evaluate a cluster of assets, addressing holistically other
activities and operations across the terminal with a campus mindset.
b. Explore cost savings opportunities towards operational and maintenance efficiency.
c. Develop process for data collection and develop data story and metrics for how the
Port approaches large, phased projects.
Users Health, Safety, Welfare:
a. Protect the health, safety, and welfare of occupants and users through solutions,
methods and materials that ensure a healthy built environment and eliminate or
reduce hazards in the workplace.
b. Integrate health safety and welfare considerations in all phases of the buildings’ life
cycle: planning, design, construction, operations and maintenance, renovation, and
final disposal.
COMMISSION AGENDA – Action Item No. 10b Page 4 of 8
Meeting Date: October 10, 2023
Template revised June 27, 2019 (Diversity in Contracting).
(3) Champion Diversity and Equity
Promote equitable access to information and new jobs through and inclusive industrial
economy and ladders of economic opportunity.
a. Meet or exceed the Port’s diversity in contracting goals in the procurement of Design
and Construction services.
b. Support apprenticeship utilization and workforce development during construction.
c. Ensure broad inclusion during public outreach.
(4) Improve the Movement of People and Goods to and Within Industrial Zones
a. Promote environmentally sustainable transportation modes.
b. Increase safety for all travel modes.
c. Leverage wider plans for changes to transportation and circulation systems in
the vicinity to improve access to/from the site.
(5) Foster Community Stewardship and Cultural Benefits
a. Build new confidence in Port’s ability to pursue industrial development.
b. Seek opportunities to leverage and develop partnerships in industrial maritime
sector.
c. Demonstrate the Port’s continued commitment to engaging communities near T91 in
a transparent manner with timely information and opportunities to provide input.
d. Include and strive for functional integration of art (Port’s 1% Art Program) into the
designed product.  
Major Phased Development Plan
The Port has submitted permitting for a Major Planned Development (MPD) through SDCI. An
MPD is a unique permitting vehicle under the Seattle Land Use code, which allows for one land
use permit to cover multiple development projects on one large site phased over time. A major
phased development authorizes construction up to 15 years after the permit is issued.
The MPD provides flexibility for the Port in planning, design, and construction. The Port also
completed a State Environmental Protection Act (SEPA) review for this project.
Diversity in Contracting
In the executed project-specific contract for professional design services related to continue
progress towards design and permitting and complete the scope of work described below the
consultants Diversity in Contracting Commitment was 18%.
After the completion of 90% design, the applicability of a Project Labor Agreement will be
determined as well, in coordination with Labor Relations.
COMMISSION AGENDA – Action Item No. 10b Page 5 of 8
Meeting Date: October 10, 2023
Template revised June 27, 2019 (Diversity in Contracting).
DETAILS
All professional design services for all project elements/improvements necessary to support the
T91 Uplands Development are described below.
Scope of Work
The scope of the T91 Uplands Development project includes: 
1. Design and MDP permitting of Phase I and Phase II Premises
2. Design, permitting and Construction of Phase I Premises
Phase I Premises’ improvements are anticipated to include, but not limited to, the following:    
1. Removal and replacement of associated on-site utility systems  
2. Installation of stormwater treatment system
3. Installation of new sewer line sized to serve Phase II development.
4. New Telecom and Data infrastructure extended to uplands to Support all current and
future development.   
5. Removal and replacement of on-site roadway and parking lot pavement    
6. Construction of new building(s) totaling 120,000 SF    
7. Upgrading of facility signage, lighting, and landscaping as required    
8. Improvements to off-site public streets as, and if, required by the City of Seattle    
9. Implementation of applicable environmental best management practices
10. Obtainment of LEED Core & Shell, Silver Level credential
11. Development of sustainable tenant design requirements for occupant build-out
12. Installation of protected bicycle and pedestrian spaces
13. Installation of conduit to enable future electric vehicle charging in all parking spaces
14. Enable a future pedestrian portal on the Northern multi-use trail
15. Install solar panels to provide approximately 20% of expected building energy use
16. Avoid red list materials as defined by the International Living Future Institute
17. Increase tree canopy in parking area by planting approximately 45 trees
Significant progress has been made on the Terminal 91 Uplands project since the last
authorization. This work guides and supports future work on the project:
1. Developed Owner’s Project Requirements
2. Submitted MPD permit for agency review
3. Completed Sustainable Design Approach
4. Final issued SEPA Decision - Determination of Non-Significance
5. Completed Traffic Report of existing and proposed impacts
6. Completed Geotech and Environmental subsurface investigation
7. Completed 60% Phase I design development
8. 15% & 30% Risk Analysis planning
COMMISSION AGENDA – Action Item No. 10b Page 6 of 8
Meeting Date: October 10, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Schedule
Activity
2019 Quarter 1
2020 Quarter 3
2024 Quarter 2
2025 Quarter 1
2026 Quarter 2
Cost Breakdown
This Request
Total Project
Design
$3,700,000
$8,000,000
1% Art
$800,000
$800,000
Construction
$0
$75,200,000
Total
$4,500,000
$84,000,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do nothing: pass on authorizing the additional design funding of a contract for
professional design services to complete the design and permitting on T91 Uplands.
Cost Implications: Halt spending on an approved Major Capital Project and loss of possible return
on investment to date.
Pros:
1. Retain Port capital for other priority projects and financial initiatives.
Cons:
Delay, and possible interruption of the project, leading to:
1. Missed opportunity to achieve Port objectives of supporting fishing and maritime clusters.
2. Missed opportunity for improving long-term financial viability of T91.
3. Missed opportunity to add major maritime business tenants at T91.
4. Missed opportunity to add needed light industrial space in the Ballard Interbay area at
T91.
5. Missed opportunity to replace existing aged storm sewer system with effective
stormwater management system, including water quality treatment, at T91 in full
compliance with Port and City of Seattle standards.
6. Missed opportunity to improve existing water, sanitary, lighting, electrical,
communications, and traffic related infrastructure to enable future development at T91.
This is not the recommended alternative.
Alternative 2 - Authorize the additional design funding of a contract for professional design
services to complete the design and permitting on T91 Uplands in two phases.
COMMISSION AGENDA – Action Item No. 10b Page 7 of 8
Meeting Date: October 10, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Cost Implications: Continued spending on an approved Major Capital Project with a potential for
a return on the investment made to date.
Pros:
Allow progress of project towards completion, achieving the following:
1. Meets Port objectives of supporting maritime industries and the maritime supply chain.
2. Improves long-term financial viability of T91.
3. Adds major maritime business tenants at T91.
4. Adds needed light industrial space in the Ballard Interbay area at T91.
5. Provides a flexible city-approved development plan for phased construction over 15 years
to meet market demand.
6. Provides long-term cost savings due to economy of scale derived from larger (more
consolidated) permit, design, and construction efforts.
7. Replaces existing aging storm sewer system with effective stormwater management
system, including water quality treatment, at T91 in full compliance with Port and City of
Seattle standards.
8. Improves existing water, sanitary, lighting, electrical, communications, and traffic related
infrastructure at T91.
9. The property would support the creation of hundreds of new jobs in the
maritime/manufacturing sector.
Cons:
1. Requires major Port investment of funds over shorter term.
2. Requires reduction of existing area available for on-site open storage.
3. Creates temporary construction impacts to existing T91 upland tenant business
operations.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$39,000,000
$0
$39,000,000
Previous changes – net
$10,000,000
0
$10,000,000
Current change
$35,000,000
0
$35,000,000
Revised estimate
$84,000,000
0
$84,000,000
AUTHORIZATION
Previous authorizations
$4,300,000
0
$4,300,000
Current request for authorization
$4,500,000
0
$4,500,000
Total authorizations, including this request
$8,800,000
0
$8,800,000
Remaining amount to be authorized
$75,200,000
$0
$75,200,000
COMMISSION AGENDA – Action Item No. 10b Page 8 of 8
Meeting Date: October 10, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Annual Budget Status and Source of Funds
This project was included in the 2023 Capital Plan under C800158 T91 Uplands Development
Phase I with a total estimated cost of $79 million. The updated project cost estimate has been
incorporated into the draft 2024 Capital Plan currently in development.
The project is being funded by the Tax Levy.
Financial Analysis and Summary
Project cost for analysis
$84,000,000
Business Unit (BU)
Real Estate Development/EDD Portfolio Management
Effect on business performance
(NOI after depreciation)
The project is expected to generate approximately $2
million in incremental revenue in the first year of full
occupancy. The development will add approximately
$2.8 million of annual depreciation expense.
Updated financial information will be provided at
construction authorization based on market conditions
and the leasing strategy for the property.
IRR/NPV (if relevant)
NPV: ($58 million)
Payback
30+ years
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
February 26, 2019 – The Commission authorized the execution of contracts for overall master
planning, environmental review, permitting, and Phase I Design services in an amount
not-to-exceed $4,000,000, in support of the Port’s development of the T91 Uplands
Development project.
November 27, 2018 – The Commission approved 2019 Capital Budget and Plan of Finance
including T91 Uplands Development project.
October 25, 2016 – The Commission received a briefing about the Real Estate Strategic Plan
including the T91 Uplands Development project.