FT Washington Maritime Blue
First Amendment to Lease
Presenters:
Jennifer Maietta, Director Real Estate Asset Mgmt.
Kelly Purnell, Capital Project Manager V
Item No. 8m supp
Date of Meeting November 17, 2026
Request
• Request Commission authorization for the Executive Director
to approve the First Amendment to the Washington Maritime
Blue (“Maritime Blue”) adding an additional six months to the
initial lease term, Rent Commencement and Early Termination
dates, and increasing the Tenant Improvement allowance by a
not to exceed amount of $300,000 to reimburse Maritime Blue
to complete the installation of the solar panels required for the
living building challenge (“LBC”).
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Maritime Innovation Center
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Background
• The Port turned over the MInC building to Maritime Blue effective June
16, 2026 with tenant improvements (“TI”) to have commenced upon
delivery of the premises to be completed no later than March 16, 2026,
or the lease may be terminated by the Port and result in significant
penalties.
• Due to a delay in reaching their capital funding campaign goals,
Maritime Blue has requested an additional six months to finalize its
funding to perform their TI work.
– Currently Maritime Blue currently has verbal commitments of 100% for their
capital funding with these becoming signatories in November and anticipate TI
work to commence January 2027.
– The 6-month extension would also extend the Rent Commencement Date, Early
Termination Outside Completion Date, and primary term with no loss of revenue.
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Background
• Additionally, the Port was unable to install all of the required solar
panels required for the LBC during the MInC project due to a delay in
delivery of approximately half of the solar panels.
– The installation would have significantly impacted the timing of substantial
completion of the MInC project and timely delivery of the Premises to Maritime
Blue resulting in significant penalties.
– If Port installs, requires a long-lead time for a new permit and contract and more
than likely would not align with completion of TI’s with strong potential to delay
LBC monitoring for LBC certification.
• Maritime Blue has agreed to complete the installation of the remaining
solar panels as a part of their Tenant Improvement work subject to
reimbursement by the Port.
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Living Building Challenge
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First Amendment Terms
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Term Description
Rent Commencement Extended from December 17, 2026,
to June 16, 2027
Early Termination & TI
Outside Completion Date
Extended from March 18, 2027,
to September 18, 2027
Lease Termination Date Extended from June 15, 2036,
to December 15, 2036
TI Allowance Not to exceed $300K for reimbursement for
completion of solar panel installation
ALTERNATIVES
Alternative 1 – Port installs solar panels
Cost Implications: $285,000
• Pros:
– Port would have control over the installation
• Cons:
– Requires long-lead time for new permit & contract installation
– More than likely not align with completion of Maritime Blue TI delaying living
building challenge monitoring required for LBC certification.
– Would require extended overheads including permit and associated costs with
Port contracted installation.
This is not the recommended alternative
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ALTERNATIVES – Recommended
Alternative 2 – Maritime Blue installs solar panels
Cost Implications: $200,000
• Pros:
– Can be installed under Maritime Blue Tenant Improvement permit
– Would align with the completion of Tenant Improvements with no delay in the
living building challenge monitoring certification.
– If installation is not completed by Maritime Blue, the Port could still install solar
panels specific to a new tenant’s use and design requirements for LBC.
• Cons:
– Relies on Maritime Blue’s completion of the Tenant Improvements including solar
panel scope.
THIS IS THE RECOMMENDED ALTERNTAIVE
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