Item No.: 10a_supp
Meeting Date: February 24, 2026

T91 Uplands Redevelopment
Post-Validation contract amendment

1

Action Requested
Request Commission authorization for the Executive Director to approve funding to
execute a Post-Validation Amendment to the alternative public works Progressive
Design-Build contract, MC-0321389, for the T91 Uplands Development program
(C800158, C801169, C801372) to further advance design, complete the development
and negotiation of a Guaranteed Maximum Price (GMP), and perform some early work
and procurement of long-lead items. The total requested for this action is $36,200,000
for a total project authorization of $46,300,000.

2

Vision and Purpose
Develop new maritime industrial buildings with associated utility and site
infrastructure and demolish several outdated buildings.
New upland Port buildings will help sustain and support maritime industries and
maritime supply chain.
• Shortage of leasable light industrial building space in Ballard Interbay Northend
Manufacturing Industrial Center (BINMIC)
• Demonstrate support for Seattle's Industrial Lands policy
• Retain port-dependent maritime tenants supporting vessel activity at Piers 90 & 91
• Support Maritime Innovation Center and other maritime innovation businesses
• Make-up for demolition of obsolete warehouse space at T91

3

Project Area

Phase 1

Phase 2:
Pad Ready

Demolition

MAGNOLIA BRIDGE
4

Project Baseline Scope
1. Phase 1 Buildings
• Building A, B, and C

2. Phase 1 Site
• Parking & Staging Area
• Site Infrastructure

3. South Building Demo
• W-39, M-28, and M-19

4. Phase 2 Pad Ready
• Limited to design

5

Phase 1 - Building Footprint

6

Proposed Phase 1 - Warehouses

7

Proposed Phase 1 - Warehouse & Support

8

Proposed Phase 1 - Shared Staging Area

9

South Demolition: W-39, M-28, M19

M-39
W-28

M-19

10

Cost Breakdown and Target GMP
Cost Element

Design and GMP Develop.
Authorization

Total Cost

Design
Phase 1
Phase 2 Pad-Ready
Demolition

$14,085,000
$11,500,000
$1,585,000
$1,000,000

$24,185,000
$20,300,000
$1,885,000
$2,000,000

Environmental Remediation Liability
Phase 1 - Soil Remediation
Phase 2 - Soil Remediation
Demo - Abatement

$8,800,000
$1,000,000
$0
$7,800,000

$8,800,000
$1,000,000
$0
$7,800,000

Construction
Phase 1
Phase 2 Pad-Ready
Demolition

$13,300,000
$5,000,000
$0
$8,300,000

$98,000,000
$89,700,000
$0
$8,300,000

Total

$36,185,000
$17,500,000
$1,585,000
$17,100,000

$130,985,000
$111,000,000
$1,885,000
$18,100,000

Phase 1
Phase 2 Pad-Ready
Demolition

11

Phase 1 Financial Analysis
Assumptions:
•
•
•
•

Net Present Value: ($78 million)
Internal Rate of Return: (0.40%)
Payback Period: 30+ years
Incremental Income: $1.8 million/yr
- Negative NOI after depreciation
- Initial at stabilization

• Only includes Phase 1 Development
- Analysis does not include building demolitions
- Does not include Phase 2 costs*

• Occupancy of 90% (stabilization), with rent
escalation of 3% annually
- 70% warehouse/office & 30% warehouse only
- Estimated 50% pre-lease

• Includes only incremental expenses:
property management and maintenance
- NNN leasing strategy

• Analysis based on 30-year cash flows
*Phase 2 will be evaluated post design/initial negotiation
12

CIP Changes & Funding Shortfalls
• 2026 Capital Plan/Budget: $67 million
- Phase 1: $50 million
- Phase 2: $9 million
- Building Demolition: $8 million

• T91 Phase 1 & Demo Current Cost Estimate: $131 million  CIP shortfall of $64 million
- Additionally, latest CIP update resulted in a net increase of $41 million (vs. POF) due to cost estimate revisions

• Proposed changes to the 2026-30 CIP to accommodate:
- FT NW Dock Improvements ($58M): Defer project start by 4 years.
- Harbor Mooring Dolphins ($19M): Project removed from the capital plan.
- T91 Uplands Phase 2 Pad-Ready ($9M): Include design cost only of $1.8M.
• Current cost estimate at $16.63 million

• MD Reserve ($55M): Reallocate all reserve funding for the 5-year period.
- Large number of asset preservation projects on the horizon
- Without additional funding, capacity constraints will further limit future capital investment needs & opportunities

13

Project Schedule
Phases

Anticipated Dates

Commission Authorization - Post-Validation Amendment funding February 24, 2026
Design and GMP Development

Q1 2026 - Q4 2026

Sustainability Environment & Climate Committee meeting

Q2 2026

Demolition of M-39, W-28, M-19

Q3 2026 - Q3 2027

Commission Authorization - GMP Amendment funding

Q4 2026

Construction - Phase 1

Q1 2027 - Q1 2028

Construction - Phase 2 Pad Ready (potential)

Q4 2027 - Q4 2028

14

Potential Risks
RISKS

DESCRIPTION

PROBABILITY

IMPACT

MITIGATION

Tie-in to existing
infrastructure

Assumptions are made about connecting to existing
systems that may change before the project is complete.

High

High

PDB validation and internal testing has identified
potential issues that can be tracked in additional
capital projects and the Risk Register

Unknown Site Conditions

The site is full of abandoned foundations and utilities that
can impact construction timelines and cost.

High

High

Partnering with a progressive design-build (PDB) team
allows validation of the site and better understand
what is in the ground. This can then be incorporated
into schedule and the GMP for better cost certainty.

Permitting time

Permitting delays may impact schedule and cost.

Med

Med

PDB project delivery will allow for early collaboration
on design and permitting to the extent feasible.

Coordination with other
projects and seasonal
demand at T91

There are many other projects scheduled on Pier 91 with
similar timelines that may impact construction.

Med

Low

Communication consultant will help coordinate the
identification of on-going and upcoming construction
work.

Supply chain uncertainty

Supply chain logistics could delay project delivery. Tariffs
could impact ability to procure long-lead items and create
uncertainty in pricing.

Med

High

Adding cost contingency to the risk register to
account for tariff price impacts. Early procurement of
long-lead equipment in advance.

Low

Early engagement with SDOT to align expectations
and mitigate approval delays. Additional coordination
and work regarding the Magnolia Bridge railing is
added to the Risk Register.

Demolition of W-39

Project Risks

The W-39 building is connected to the Magnolia Bridge.

Med

15

Questions?

16

Appendix

17

Project Funding
COST ESTIMATE

CAPITAL

EXPENSE

EXPENSE

DEMO

ERL

TOTAL

Original estimate
Phase 1
Phase 2 Pad Ready
Demolition

$39,000,000
$10,350,00
$0

$0
$0
$9,100,000

$0
$0
$0

$39,000,000
$10,350,000
$9,100,000

Previous changes - net
Phase 1
Phase 2 Pad Ready
Demolition

$45,000,000
$0
$0

$0
$0
$0

$0
$0
$0

$45,000,000
$0
$0

$27,000,000
$1,885.000

$0
$0

$0
$0

$27,000,000
$1,885,000

$0

$1,000,000

$8,000,000

$9,000,000

Current change
Phase 1
Phase 2 Pad Ready*
Limited design only
Demolition
Revised estimate
Phase 1
Phase 2 Pad Ready*
Limited design only
Demolition

$111,000,000
$1,885,000

$0
$0

$0
$0

$111,000,000
$1,885,000

$0

$10,100,00

$8,000,000

$18,100,000

COST ESTIMATE
Previous authorizations
Phase 1
Phase 2 Pad Ready
Demolition

CAPITAL

EXPENSE

EXPENSE

DEMO

ERL

TOTAL

$8,800,000
$300,000

$0
$0
$1,000,000

$0
$0
$0

$8,800,000
$300,000
$1,000,000

Current request for
authorization
Phase 1
Phase 2 Pad Ready
Demolition

$16,500,000
$1,585,000
$0

$0
$0
$9,300,000

$1,000,000
$0
$7,800,000

$17,500,000
$1,585,000
$17,100,000

Total inc. this request
Phase 1
Phase 2 Pad Ready
Demolition

$25,300,000
$0
$1,885,000
$0
$0 $10,300,000

$1,000,000
$0
$7,800,000

$26,300,000
$1,885,000
$18,100,000

Remaining amount to be
authorized
Phase 1
Phase 2 Pad Ready
Demolition

$84,700,000
$0
$0

$0
$0
$0

$84,700,000
$0
$0

$0
$0
$0

18