COMMISSION AGENDA MEMORANDUM ACTION ITEM Item No. Date of Meeting DATE : September 3, 2025 TO: Stephen P. Metruck, Executive Director FROM: Jessica Carlson, Sr. Real Estate Manager, Sponsor Terrence Moody, Capital Project Manager Jennifer Maietta, Dir. Real Estate Asset Management, Sponsor 8i September 9, 2025 SUBJECT: Fishermen's Terminal C14 Downie Building Demolition and Entrance & Exit Paving (CIP # 801890) - Design and Construction Authorization Request Amount of this request: Total estimated project cost: $1,250,000 $4,400,000 ACTION REQUESTED Request Commission authorization for the Executive Director to approve funding to (1) Design, obtain permits, advertise and execute a small works construction contract for PCS to demolish the Fishermen's Terminal C14 Downie Building in the amount of $600,000, and (2) Complete design and permitting of the Entry and Exit Paving project in the amount of $650,000 for a total request of $1,250,000 for a total authorized amount of $1,550,000. Total estimated project cost is $4,400,000. EXECUTIVE SUMMARY The project will be conducted in two (2) packages. Package #1: Demolish the existing Fishermen's Downie Building (Building C-14) which is in the process of being vacated and is unleasable due to the poor condition of the structure. The demolition will include the abatement of regulated materials, small amounts of material salvage such as windows, HVAC Systems and doors, demolition of the structure down to the existing slab, and capping of the utilities. Package #2: Repave the main entrance and exit lanes of Fishermen's Terminal and create a parking lot in the footprint of the demolished C14 Downie building. The existing stormwater catch basin system and associated piping will be replaced to meet Environmental Stormwater requirements along with a new biofiltration system. The project will also install upgraded area lighting, three (3) EV charging stations, a bike lane, bike box, landscaping with pollinator habitat, and wayfinding signage. Template revised January 10, 2019. COMMISSION AGENDA - Action Item No. 8i Meeting Date: September 9, 2025 Page 2 of 5 This project is Tier 2 under the Sustainable Evaluation Framework. Analyses are complete and results included within the scope. The project is currently in the pre-design/phase, with construction documents at the 30% stage of completion. The Fishermen's Terminal facility has been home to the North American Fishing Fleet, provides vessel moorage, supports many small businesses in multiple buildings including the new Maritime Innovation Center currently under construction. JUSTIFICATION The Fishermen's Terminal entrance is visitors' first visual experience when entering the facility. The current condition of the entrance/exit roadway is uneven, marked by potholes, and is showing clear signs of wear and fatigue. The roadway median is also in a state of disrepair and needs to be replaced. These elements greatly detract from the visual appeal when entering the facility. Additionally, the existing stormwater catch-basins, and associated piping must be replaced to meet Environmental Stormwater requirements. Upgraded lighting, landscaping and signage will improve the overall aesthetic and operational safety at the entrance/exit of Fishermen's Terminal. The C14 Building was built in 1979 and is now fully depreciated. Major structural upgrades are required to maintain safe occupancy, but the Port cannot make a business case for rehabilitation. Without upgrades the building will continue to deteriorate, creating safety and security concerns. Only one tenant remains in the building, but they will vacate their space in September 2025. As a result, the building will be demolished. Diversity in Contracting Project staff along with the Diversity in Contracting Department have established a Woman and Minority Business Enterprise (WMBE) aspirational goal of 20% for the construction portion of the project. DETAILS The project team will:  Facilitate small business opportunities by adhering to the WMBE aspirational goals established for the project.  Mitigate construction-driven business risk impacts by implementing project risk management and phasing plans.  Complete the project safely, on schedule, and on budget. Scope of Work Package #1 Demolition:  Design and obtain permits to demolish C-14 Downie Building down to the slab during phase 1 utilizing Port Construction Services and the use of Port of Seattle crews and small Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8i Meeting Date: September 9, 2025    Page 3 of 5 works on-call contracts to perform the demolition. Permits include SDCI demolition permit, stormwater, and grading reviews. Complete salvage assessment and salvage identified items, including windows, HVAC systems and doors; complete and submit waste diversion report to SDCI Cap Building C14 utilities: Natural gas, Water and Sewer Retain Electrical power for Package #2 build-out. Package #2 Paving & Drainage:  Regrade and repave the main FT entrance/exit  Remove and replace median & landscaping  Install a new biofiltration swale and landscaping with pollinators  Install stormwater catch basins, piping  Restripe intersection and crosswalks as required  Demolish Building C14 concrete floor slab  Regrade/repave C14 parking lot  Install LED Lighting in new parking lot  Install EV duplex chargers as required by code (3ea)  Install protected bike lanes, bicycle box, and improve connection to W 22nd.  Install improved bicycle and pedestrian lighting within Downie area  Install multimodal wayfinding  Complete ADA compliance as needed Schedule Activity Commission design authorization Design start Demolition & Paving Construction Demolition for C14 Commission construction authorization for Paving & Drainage Construction start Paving & Drainage In-use date September 9 th 2025 Quarter 3 2025 Quarter 2 2026 Quarter 4 2026 Quarter 2 2027 Quarter 1 2028 Cost Breakdown This Request Total Project Design and Demolition of Bldg. C14 Design Paving and Drainage Construction Paving and Drainage Total $600,000 $650,000 $0 $1,250,000 $750,000 $800,000 $2,850,000 $4,400,000 Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8i Meeting Date: September 9, 2025 Page 4 of 5 ALTERNATIVES AND IMPLICATIONS CONSIDERED Alternative 1 - Do nothing, Maintain Status Quo. With this alternative, the C14 Building will exceed the limit of its service life, the condition of the Entry and Exit Paving will adversely affect the use of the Facility assets. Maintain the current state and delay upgrades, with continued maintenance cost of $153K annually (averaged over 12 months). Cost Implications: $153K/year for maintenance Pros: (1) Cons: (1) (2) (3) (4) (5) (6) Allows port to reallocate capital investment dollars. Does not advance efforts to achieve Century Agenda goals Inconsistent with Port standard of care for assets and facilities Further deterioration of the entry and exit paving with water infiltration disrupting facility activities and causing damage requiring expensive repairs. Increased probable construction costs in the future Safety could be compromised for visitors, tenants and employees. Maintenance costs will continue to increase This is not the recommended alternative. Alternative 2 - Complete demolition of the C-14 Building and improvements of the Fishermen's Terminal Entry and Exit. Cost Implications: $4.4M Pros: (1) (2) (3) (4) (5) Cons: (1) (2) Advances Century Agenda goal to "Be the greenest and most energy-efficient port in North America". Upgrade and replace components of existing site infrastructure with features that have a 20-30-year life or more. Provides protection of Port assets. Helps to assure a positive visitor experience and demonstrates the Port's commitment to maintaining its public facing asset. The alternative will incorporate Sustainable Design elements approved by the Port Sustainability, Environment and Climate Committee (SEAC). This alternative uses $4.4M of capital funds that might otherwise be made available for other uses on other projects. Short-term construction impacts This is the recommended alternative. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 8i Meeting Date: September 9, 2025 Page 5 of 5 FINANCIAL IMPLICATIONS Cost Estimate/Authorization Summary Capital Expense Total COST ESTIMATE Original estimate $4,400,000 $0 $4,400,000 AUTHORIZATION Previous authorizations Current request for authorization Total authorizations, including this request Remaining amount to be authorized $300,000 $1,250,000 $1,550,000 $2,850,000 $0 $0 $0 $0 $300,000 $1,250,000 $1,550,000 $2,850,000 Annual Budget Status and Source of Funds This project, FT Entrance and Exit Paving (C801890) is included in the draft 2026 capital plan with a total project cost of $4,400,000. The project was included in the approved 2025 capital plan with a budget of $2,700,000 and demolition budgeted as a non-operational expense. This project is funded by the Tax Levy. Financial Analysis and Summary Project cost for analysis Business Unit (BU) Effect on business performance (NOI after depreciation) $4,400,000 Portfolio Management Annual depreciation will increase by approximately $127K based on an estimated 30-year service life, thereby reducing the NOI by the same amount. IRR/NPV (if relevant) CPE Impact N/A N/A Future Revenues and Expenses (Total cost of ownership) This replacement project will improve public safety, provide protection of Port assets and extend the useful life of the Entry and Exit pavement and landscaping. Maintaining existing assets will preserve the economic vitality of our operations and serve the Port, tenants and their customers well. ATTACHMENTS TO THIS REQUEST (1) Presentation PREVIOUS COMMISSION ACTIONS OR BRIEFINGS None Template revised June 27, 2019 (Diversity in Contracting).