Port of Seattle RFQ – CruiseT46

Port of Seattle RFQ ? CruiseT46 Request for Qualifications for a Partner to develop a new cruise Terminal at Terminal 46 March 13, 2019

The Port of Seattle is seeking a partner for the development and operation of a new, single berth cruise terminal at Terminal 46. This RFQ is the first step in selection process. Parties that wish to respond to the RFQ or wish to receive any updates or communication related to this RFQ MUST register by providing information on a form on the Port's website. A link to the form is on the same page where this RFQ is located, .

If you have questions regarding registration or this RFQ email to: NewCruiseTerminal@ Attention Ester Suan Tjoe.

Questions related to this RFQ will be answered in accordance with Section VII.

MARCH 13, 2019 MARCH 27, 2019

APRIL 5, 2019 APRIL 18, 2019

MAY, 2019

RFQ SCHEDULE OVERVIEW RFQ Released Deadline for questions related to the RFQ Port response to RFQ questions Deadline to submit responses to the RFQ Shortlist announced and copies of all responses provided to RFQ participants

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Table of Contents

I.

Introduction ? Background and Current Facilities

II. Principles of Cruise Business Development

III. Description of the Project

IV. Proposed Commercial Terms

V. Requirements for RFQ Submission

VI. New Cruise Terminal Qualification Criteria

VII. Selection Process (Subject to Revision)

2-6 7-8 9-10 11 12-15 16-17 18-24

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I. Introduction ? Background and Current Facilities

The Port of Seattle Washington (the "Port") is a municipal corporation of the State organized on September 5, 1911, under provisions of the laws of the State, codified at RCW 53.04.010 et seq. The Port owns and operates various maritime facilities and industrial and commercial properties (for more information: ). The Port also owns container shipping terminals and has licensed these terminals, along with certain industrial properties, to the Northwest Seaport Alliance (NWSA), a port development authority formed jointly in 2015 with the Port of Tacoma to manage the two ports' container shipping terminals and related industrial properties (for more information: ). Port policies are established by the five-member Commission elected at large by the voters of the County for four-year terms. The Commission appoints the Executive Director and hires Commission staff. The Commissioners also act on behalf of the Port in its capacity as a Managing Member of the Seaport Alliance. Since 1999, Seattle has grown to be the premier west coast cruise port, with 11 homeport vessels (handling departure sailings), and 9 port of call vessels during our 2018 season at Port's existing cruise terminals, the Smith Cove Cruise Terminal at Pier 91 and the Bell Street Pier Cruise Terminal at Pier 66. There are several reasons that Seattle has become the hub for Alaska cruising: the natural deep-water port that can accommodate some of the largest vessels in the world, award-winning and world-class cruise facilities that can accommodate large volumes of passengers, the cruise terminals' spectacular settings, and easy access to downtown Seattle and Sea-Tac International Airport. The Port of Seattle's cruise program supports statewide efforts to expand tourism-related economic activity. The Dean Runyon Associates 2017 Report for the Washington Tourism Alliance found that tourism is the fourth largest economic sector in Washington. The Port of Seattle drives additional cruise-related economic activity through marketing and economic development partnerships that encourage cruise passengers to extend their stay in Seattle and Washington state. The Port has built the cruise business on a foundation of excellent customer service and a commitment to environmental leadership and sustainability. Through partnerships with the cruise industry and regulators, the Port has established high standards for protection of air and water quality at our terminals and in State of Washington waters. Further, the Port is also committed to engagement with the community and ensuring the economic benefits of cruise operations are widely shared. These principles will guide the Port in the selection of partners for the new terminal development.

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The Port is seeking a partner for development and operation of a new cruise facility at Terminal 46. This RFQ will be used to select a shortlist of potential partners that will be invited to participate in a Request for Proposals that will result in a negotiated agreement. Additional information on the Port of Seattle cruise business can be found online at:

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Current facilities

The Port has two separate cruise facilities at two different locations each with different characteristics and operational agreements. The two current cruise facilities are: The Smith Cove Cruise Terminal at Terminal 91, the two-berth facility which opened in 2009, serves as homeport for Carnival Cruise Line, Celebrity Cruises, Holland America Line, Princess Cruises and Royal Caribbean, which offer weekly sailings to Alaska. Located at the north end of Seattle's waterfront, it's approximately 3 miles from the city's retail core. The following provides key information about this facility:

1. Location: 2001 West Garfield St, Seattle WA 98119. 2. A single land fill pier with two berths, one on each side and 35ft of water depth. The facility

currently serves cruise ships up to 1140 ft. 3. The terminal consists of a single 2 story building with shared security and CBP facilities with a total

area of 143,000 square feet and surface parking lots on site 4. The current terminal is under an operator lease agreement which expires at the end of 2019. 5. The Port has a preferential berthing agreement for these berths on selected days (Sunday,

Monday, Tuesday and Saturday) with Carnival Lines (Holland America Line, Princess Cruises, and Carnival Cruise line) with a base term through 2021 cruise season with options to extend the agreement for one or two additional seasons through 2023. 6. Royal Caribbean International and Celebrity Cruises also homeport at Terminal 91 with weekly sailings to Alaska on Fridays. 7. For more information, see

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The Bell Street Pier Cruise Terminal at Pier 66 is a single-berth facility which opened in 1999 and anchors an 11-acre multi-use complex along Seattle's downtown waterfront. Pier 66 serves as a homeport for Norwegian Cruise Line and Oceania Cruises, which offer sailings to Alaska. The following provides key information about this facility:

1. Location: 2225 Alaskan Way, Seattle, WA 98121 2. Pier 66 was recently renovated including expansion of the passenger terminal to 151,000 square

feet. In addition, a second passenger-boarding gangway was added as well as an automated conveyor system that moves passenger luggage from curbside to dock. 3. In 2015, Norwegian Cruise Line Holdings entered a 15-year lease agreement with the Port of Seattle and partnered in investing in the expansion of the terminal to accommodate large cruise ships. The lease expires in 2030 with one five-year option to extend the agreement to 2035. 4. For more information, see: The demand for Seattle cruise services can no longer be met by the Port's two existing terminals described above. The Port has determined that it may be advantageous to conduct a competitive selection process for a private partner who can take a lead role on some aspects of the development of a new cruise terminal, operate and maintain the facility under a long-term agreement, and be a source of capital funding to the Project. This process begins with this RFQ. Additionally, under a separate process, the Port may conduct a competitive selection for a partner at the existing Smith Cove Cruise Terminal at Terminal 91.

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II. Principles of Cruise Business Development

The Port has developed guiding principles for its cruise business and will evaluate partners based on their ability to support these principles. The principles reflect the Port of Seattle's Century Agenda goal to strengthen this region as a leading tourism destination and double the economic value of cruise, while maintaining the Port's triple bottom line ? balancing environmental, financial, and societal goals. The Port of Seattle expects that its partner(s) in developing and operating cruise terminals will prioritize the following key principles and project elements:

1. Maximize the use of the Port's deep-water facilities and industrial lands to serve maritime industrial uses. a. Preserve and utilize industrial zoned lands. b. Preserve waterfront lands for maritime industrial uses. c. Manage facilities and develop projects in a manner consistent with prioritizing marine cargo businesses and supporting the competitiveness goals of the Northwest Seaport Alliance. d. Complement cruise terminal with other maritime uses including cargo.

2. Expand economic, cultural and community benefits within Cruise Operations and Development. a. Acknowledge historical and cultural roots of the region in any terminal development. 1. Engage in government-to-government consultation with regional tribes in order to manage opportunities and impacts accordingly. 2. Honor tribes' waterfront heritage in the Port's cruise facilities through direct partnerships. b. Work productively and collaboratively with organized labor and enter into a project labor agreement for any capital construction thereby ensuring living wage jobs for employees and apprenticeship opportunities. c. Support economic opportunities of cruise for neighboring and underserved communities. 1. Promote local, small, and women-, minority-, and tribal-owned businesses. 2. Support neighboring and local businesses' ability to benefit from cruise development.

d. Coordinate access to public spaces, downtown connectivity, and other areas of interest with other stakeholders and public entities. 1. Respect the integrity and character of the surrounding neighborhoods 2. Work to strengthen partnerships with near-port communities.

3. Support financial sustainability of the Port of Seattle. a. Maximize income, taking into consideration risk-sharing and capital investment. b. Leverage the financial return of the cruise business to support a diverse maritime economy.

4. Incorporate leading edge environmental stewardship and sustainability practices and facilities that can exceed existing regulations. a. Set aggressive goals to minimize greenhouse gas impacts in operation of ships and terminals to support the Port's goals of reducing carbon by 50 percent by 2030 and the carbon-neutralby-2050 goal. b. Lead the region and the industry to minimize air emissions, ensure water quality and protect our ecosystems, focusing on minimizing air and water discharges at dock and underway.

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c. Engage with key local stakeholders in support of regional environmental priorities and initiatives, including considering recommendations from the state's Orca Task Force.

d. Require use of shore power where feasible by equipped ships. and include shore power capabilities at the new berth.

5. Facilitate improved transportation mobility of people and goods in the region. a. Support innovative transportation solutions for passengers, terminal and cruise vessel provisions. b. Seek vehicle trip reduction opportunities and provide options other than passenger vehicles for access to the terminal. c. Seek to minimize traffic related impacts to surrounding community and existing businesses. d. Implement multi-modal transportation solutions that benefit the Seattle harbor.

6. Provide consistent excellence in customer service to strengthen Seattle's role as the West Coast's premier cruise port. a. Manage efficient, comfortable transportation to and from ships. b. Provide information, wayfinding and connections with local and regional communities. c. Promote pre-and-post cruise tourism opportunities throughout Washington state.

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