Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8h
ACTION ITEM
Date of Meeting
April 14, 2026
DATE: March 13, 2026
TO: Stephen P. Metruck, Executive Director
FROM: Kelly Purnell, Capital Project Manager, Waterfront Project Management
Kyra Lise, Director Real Estate Development
SUBJECT: Fishermen’s Terminal Maritime Innovation Center (C801084) and Site
Improvements (C801211) Close-out Funding
Amount of this request:
$500,000
Total estimated project cost:
$37,358,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to authorize additional funding in
the amount of $500,000 for close-out costs for the Fishermen’s Terminal Maritime Innovation
Center (MInC) (C801084) and Site Improvements (C801211) projects.
EXECUTIVE SUMMARY
In August 2023 Commission authorized construction funding for the renovation of the historic
Seattle Ship Supply Building into a cutting-edge, Living Building Challenge (LBC) certified Maritime
Innovation Center (MInC) and the associated set of public space site improvements including new
wayfinding and monument signage, interpretative signage, and funding public. Additional art
funding was approved in May 2024.
The project progressed to substantial completion on March 6, 2026. During construction a Level
1 delay claim was received by the construction management team in the amount of $330,000
that was settled early with the contractor and accommodated within the construction
contingency. However, many unforeseen subsurface circumstances were found during
construction including significantly more contaminated soil and two underground storage tanks
found in the primary ground disturbance area that required contamination remediation that
exceeded the approved ERL funding by $210,000. The unforeseen issues also caused four months
of additional delays, increasing the anticipated soft costs and depleting the remaining
contingency of the project. Additional funds are required to finalize the ERL costs and complete
all close-out tasks. Some of these additional funds are expected to be offset by liquidated
COMMISSION AGENDA – Action Item No. 8h Page 2 of 7
Meeting Date: April 14, 2026
Template revised June 27, 2019 (Diversity in Contracting).
damages that will be resolved in the coming months during close-out. The final amount of those
liquidated damages is under negotiation with the contractor.
JUSTIFICATION
The Fishermen’s Terminal Redevelopment improves a historic property that supports the
maritime industry by welcoming the public to parts of the terminal that enhances the
understanding and support of the industrial working waterfront. The improvements will also
facilitate keeping parts of the facility focused on the industrial needs of the North Pacific Fishing
Fleet. The site improvements, including 1% for Art projects, enhance the overall property and
serve to recognize Fishermen’s Terminal as a living community landmark. The project has also
remediated almost $1,000,000 in contaminated materials and soil, contributing to the
improvement of the overall Fishermen’s Terminal property.
The MInC builds upon a successful partnership we have forged with Maritime Blue (MB). The
Port and MB have built a successful maritime accelerator program and are now instituting a new
incubator program at Fishermen’s Terminal. The Port also has a significant partnership with MB
to advance maritime career exploration and development. These key initiatives will continue to
unfold over the next few years, and they can further scale when MB expands operations into the
MInC. At this time the building is ready for turnover to MB. Additional close-out costs will enable
a smoother transition to the tenant improvement component of this overall project effort.
Diversity in Contracting
The MInC and Site Improvements project, including the public art component, has met the 20%
of design contracts requirement required by the Living Building Challenge (LBC), and the Project
Labor Agreement (PLA) for this project exceeded the LBC requirement for workforce
development. In addition to meeting the LBC imperative, the Port Diversity in Contracting
Department requirement of a 12% WMBE goal for the MInC and Public Site Improvements
project was exceeded at nearly 13%.
DETAILS
Scope of Work
Close-out:
• Provide funding for additional contaminated soil remediation (ERL) that exceeded
estimates by over $200,000.
• Finalize all consultant contracts
• Finalize all punch list items including final minor change orders.
• Finalize LBC initiatives for Urban Agriculture.
Completed:
• Hazardous materials abatement for lead paint, asbestos, and silica that is so prolific in
early twentieth century construction was completed by Port Construction Services in
advance of the general contractor breaking ground.
COMMISSION AGENDA – Action Item No. 8h Page 3 of 7
Meeting Date: April 14, 2026
Template revised June 27, 2019 (Diversity in Contracting).
• Contaminated soil remediation (ERL)
• Demolition and renovation of the “core and shell” of the building, meaning all existing
siding, roofing, utilities, and internal infrastructure was removed, while preserving the
bulk of the original timber framing.
• The building was jacked and cribbed and temporarily relocated to the adjacent south
parking lot to install a new driven-pile deep foundation with grade beams and pile caps.
• Renovated and new core and shell including preserving the rare and valuable original old-
growth timber framing, reinforced with modern steel framing.
• Salvage of existing old-growth timber flooring and some of the existing beams that were
not used for the framing, was restored and used for flooring, benches, and other building
aesthetic components.
Sustainability Details
Below are just some of sustainable features completed for 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
(ground source heat pump).
• 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.
• No “red list” materials will be used – significant reduction in chemicals of concern.
• Biophilic design 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
COMMISSION AGENDA – Action Item No. 8h Page 4 of 7
Meeting Date: April 14, 2026
Template revised June 27, 2019 (Diversity in Contracting).
Public Site Improvements:
The FT Site Improvements include:
• Provides clarity for vehicle, bike and pedestrian routes and access with improved
wayfinding signage and branding
• Electrical lighting upgrades
• Low maintenance landscaping
• Interpretive signage
• Provisions for parking and loading to accommodate future needs
Schedule
MInC and Site Improvements
Activity
Commission initial design authorization
Design start
Commission additional design funding authorizations
Commission authorization for conditional construction
for execution of $4.87M Dept. or Commerce grant
Commission construction authorization
Commission authorization for additional construction
contingency funds
Commission authorization for additional art funds
Construction Start
In-use date
Cost Breakdown
This Request
Total Project
Design Includes
MInC
Public Site Improvements¹
$0
$0
$3,650,000
$1,525,505
Environmental Remediation Liability
Soil Remediation
Abatement
$210,000
$810,000
$160,000
Construction MInC & Public Site Impr
1
$290,000
30,730,495
Public Art
$482,000
Total
2
$500,000
$37,358,000
1
MInC and Site Improvements were bid as a single package.
2
Does not account for additional $5M Dept. of Commerce state grant #19-92201-007.
COMMISSION AGENDA – Action Item No. 8h Page 5 of 7
Meeting Date: April 14, 2026
Template revised June 27, 2019 (Diversity in Contracting).
ALTERNATIVES AND IMPLICATIONS CONSIDERED
N/A
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE  
  
  
  
Previous estimate
(MInC and Site improvements bid as
one package)
Public Art
ERL: Soil Remediation
ERL: Abatement
  
$
35,716,000
$482,000
  
$500,000
$160,000 
  $36,858,000
Current Change 
MInC Building & Site Improvements
ERL: Soil Remediation  
  
$290,000
$210,000
$500,000
Revised estimate  
MInC Building & Site
Improvements  
Public Art
ERL: Soil Remediation
ERL: Abatement
  
$
35,906,000
$482,000
  
$810,000
$160,000 
  $37,358,000
AUTHORIZATION  
  
  
  
Previous authorizations   
MInC Building & Site
Improvements  
Public Art
ERL: Soil Remediation
ERL: Abatement
  
$35,614,
774
$482,
726
  
$600
,000
$160,
500 
  $36,858,000
Current request for authorization  
MInC Building & Site
ERL: Soil Remediation
  
$2
90,000
  
$210,000
  
$500,000
Total authorizations including this request:
MInC Building & Site
Improvements  
Public Art
ERL: Soil Remediation
ERL: Abatement
  
$35,904,
774
$482,
726
  
$810,000
$160,
500
  $37,358,000
Remaining amount to be Authorized: 
MInC Building  
  
$0
  
$0  
  
$0
COMMISSION AGENDA – Action Item No. 8h Page 6 of 7
Meeting Date: April 14, 2026
Template revised June 27, 2019 (Diversity in Contracting).
Site Improvements  
$0
$0  
$0
*October 2025: $100K transferred from MInC Building to Soil Remediation
Annual Budget Status and Source of Funds
FT Maritime Innovation Center (C801084) and FT Site Improvements (C801211) were included in
the 2026 Capital Plan with a total cost of $32,061,000 and $4,136,000, respectively.
Both projects are funded by the Tax Levy. The MInC has received a $5 million contribution
towards construction from the State of Washington’s Department of Commerce.
Financial Analysis and Summary
Project cost for analysis
$37,358,000 (Net: $32.3 million with State Contribution)
Business Unit (BU)
Maritime Portfolio Management
Effect on business performance
(NOI after depreciation)
Upon full occupancy, the building is expected to generate
incremental revenue of approximately $550k per year. A
more accurate income forecast will be available upon
execution of future lease/operating agreements. The
development will increase annual depreciation by
approximately $677K
IRR/NPV (if relevant)
NPV: ($25 + million)
CPE Impact
N/A
ADDITIONAL BACKGROUND
N/A
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
• May 28, 2024 – Commission briefing on MInC and Site Improvement interpretive signage
program – simultaneous presentation with Additional Art Funding request.
• November 21, 2023 – Commission authorized additional construction funding in the
amount of $4,017,495 to replenish project contingencies for a total project authorization
of $36,608,000.
• August 8, 2023 – Commission authorized $27,415,000 construction funding for the
construction of the Maritime Innovation Center (C801084, U00414) and Public Site
Improvements (C801211, U00320). 
• November 11, 2022 – Commission authorized an additional $500,000 in design funding
for the proposed Fishermen’s Terminal Maritime Innovation Center (C801084, U00414)
to complete design and permitting due to a design error that required correction.
COMMISSION AGENDA – Action Item No. 8h Page 7 of 7
Meeting Date: April 14, 2026
Template revised June 27, 2019 (Diversity in Contracting).
• March 08, 2022 –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.
• 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 (2) to execute 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 authorized Design and Permitting completion of the FT Site
Improvements (U00320) Under the New CIP C801211, utilizing $1,525,505 in formerly
authorized funding for the Gateway Building. 
• December 8, 2020 – Commission authorized Construction of the MInC as the condition
for executing the Interagency Agreement with Washington State Department of
Commerce to allow the acceptance of a $5M grant towards its construction.  
• 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 22, 2019 – The Commission authorized an additional $1,800,000 in design funding
for FT Gateway Building improvements, and the execution of an amendment to the
existing Architectural/Engineering Services contract for FT Redevelopment for $1,000,000
to complete the final planning, design and permitting of the Gateway Building and FT Site
Improvements.  
• January 8, 2019 – Commission received a briefing regarding Maritime Blue Plan and the
Maritime Innovation Center.     
• September 26, 2017 – The Commission authorized $1,325,000 construction funding for
the demolition of the existing bank building and Net Sheds 7 and 8.  This work has
not yet been advertised for bids, per direction by the Commission, pending finalization of
a Gateway Building tenant lease agreement.   
• 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.