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Frequently Asked Questions Regarding the Port of Seattle's Proposed New Cruise Terminal

Cruise FAQ
1. Why is the Port seeking to develop a new cruise terminal?

 

With the expected growth of the global cruise industry, continued cruise line interest in Seattle and passenger demand continues to rise, a new terminal will support that demand and will also mean more economic benefits for the neighborhoods near downtown and the entire region. Over the past 20 years Seattle has established itself as the hub for Alaska and Pacific Northwest cruises. Seattle’s natural deep-water port that can accommodate some of the largest vessels in the world along with changes in shipbuilding technology which put Alaska easily within reach from Seattle. Seattle’s spectacular setting and easy access to Sea-Tac Airport has made an Alaska cruise from Seattle a “bucket list” for many. The demand for Alaska cruises continues to grow – in 2019, the Port expects to serve over 1 million passengers for the third consecutive year.  

 

2. How will the new cruise terminal benefit the surrounding community and region?

 

The Port of Seattle’s cruise program benefits the local economy. Cruise supports tourism, the fourth largest economic sector in our state through revenue to hotels, restaurants, museums, and tour operators. Local suppliers across the state, including florists, farmers, vineyards, and maritime support industries have built strong businesses selling to cruise companies. In addition, Port programs such as the tourism marketing grant support program and economic development partnerships encourage cruise passengers to extend their stay in Seattle and Washington state, widening that economic activity even further.   

 

3. Where will the new cruise facility be located?

 

The proposed terminal will be located at the north end Terminal 46, where King Street meets Alaskan Way (401 Alaskan Way, Seattle WA).

 

Cruise Map

 

4. What’s happening with the current marine cargo business on Terminal 46?
 

The Northwest Seaport Alliance is realigning its international maritime cargo operations with the Terminal 5 Modernization Program which will create room on Terminal 46 to build a new cruise terminal at the north part of the terminal co-located with other marine cargo operations to the south.

 

5. Will the Port be discontinuing use of any of its current cruise terminals?

 

No, the Port of Seattle will continue to operate two berths at the Smith Cove Cruise Terminal at Pier 91 and one berth at the Bell Street Cruise Terminal at Pier 66.

 
6. What current agreements does the Port of Seattle have around its cruise business?

 

The Port of Seattle, Department of Ecology and Cruise Lines International Association – North West & Canada (CLIA-NWC) entered a formal voluntary memorandum of understanding (MOU) to protect state waters. You can find the agreement here.

 

The Port of Seattle and Norwegian Cruise Line Holdings have a lease agreement for the use and operation of Pier 66.  You can find the agreement here.

 

The Port of Seattle and Cruise Terminals of America have a lease agreement for cruise terminal management at Pier 91.  You can find the agreement here.

 

The Port of Seattle and Carnival Corporation have a preferential berthing agreement for Terminal 91.  You can find the agreement here.

 

7. How much will the new cruise facility cost?

 

Early estimates indicate that the new cruise facility will cost approximately $200 million. The Port of Seattle’s current plan assumes that the costs will be shared with a private partner with each party paying approximately 50 percent.

 

8. How will the Port decide who its partner will be to help develop and operate the new cruise terminal?

 

On March 13, the Port will officially launch a competitive selection process with the release of Request for Qualifications (RFQ). In order to facilitate fairness and transparency and derive the greatest benefit from the RFQ process, the Port will provide an opportunity for questions or comments regarding this RFQ or the selection process before the due date. 

 

The Port will review the submissions received and determine those that are selected as the best to proceed to the next phase – that shortlist will be announced later this spring. The Port will incorporate feedback from the RFQ process to finalize a Request for Proposal (RFP). The successful shortlist submitters will be invited to respond to the RFP. From those respondents to the RFP, the Port will select a preferred partner and negotiate an agreement which will require Commission approval to execute.

 

9. Who is eligible to apply to be the Port’s partner?

 

See “Requirements for RFQ Submission” on page 12 of the RFQ.

 

10. When does the Port intend to open the new cruise terminal?

 

The Port is working towards opening the new terminal in time for the 2022 cruise season, but the schedule may change as the partnership selection process evolves.

 
11. What environmental benefits will be featured at the new cruise terminal?

 

The Port intends to incorporate leading edge environmental stewardship and sustainability practices that exceed existing regulations. This will include shore power capabilities and a requirement that all equipped ships use shore power while at the dock. The Port will also work with its new partner to install systems that will minimize water discharges.

 

12. What will the Port do to minimize traffic impacts to the surrounding community?

 

The cruise terminal facility design will include vehicle queuing on terminal to minimize any impacts on public right-of-way.

 

Today, more than one third of cruise passengers take an airport bus or shuttle to the existing terminals. The Port will also seek opportunities to support innovative transportation solutions for passengers, terminal staff and cruise vessel provisions. In addition, the Port and its partner will seek vehicle trip reduction opportunities and provide options other than passenger vehicles for access to the terminal, such as encouraging Link light rail.

 

13. Can I see a list of those who indicated they are interested in participating in the RFQ?

 

The list of those who have registered for the RFQ as of April 5 can be found here.

 

 

RFQ Questions

Below are the answers to RFQ related questions received by the Port by the March 27 deadline.  The questions have been organized by topic.  Please note that the responses are considered an addendum to the RFQ and should be read in entirety by parties planning to submit a response.

REMINDER:  RFQ responses are due April 18, 2019 at 4:00 PM PDT.  Submissions will only be considered from respondents who are registered by that time.
 

Registration list

14. Is it possible to receive a planholder's list of those people signed up who are interested in participating?

 

          The list of those who have registered for the RFQ as of April 18 can be found  here

 

15. When the POS uses typical procurement process, companies can see who else has downloaded documents.  As a general contractor interested in providing expertise to an operator respondent, who can I find out teams and companies that have downloaded RFQ?

 

TheThe list of those who have registered for the RFQ as of April 18 can be found  here

 

 

16. I would really like to get on teams for sustainable master planning services. We are a small but innovative firm. We recently provided the sustainability practices report for WSF long range plan. 2. How can we find the types of companies that might be going after this project?

 

      The list of those who have registered for the RFQ as of April 18 can be found  here

 

 

17. POS, could please send us a list of respondents available at this time?

 

      The list of those who have registered for the RFQ as of April 18 can be found  here

 

 

terminal 91 and pier 66 cruise facilities

 

18. On page 6 of the RFQ, the Port’s intention that it may conduct a competitive selection

process for Terminal 91 is stated. The future plans for Pier 91 are an important aspect of the decision whether to invest or not in Pier 46. As Pier 91 is the direct competitor of Pier 46, the decision on Pier 46 should be taken in conjunction with or after the competitive process for Terminal 91 is concluded. Please provide more detailed information about that process. 

 

The Port does not have any additional information to provide at this time.

 

19. On page 6 of the RFQ, the Port’s intention that it may conduct a competitive selection

process for Terminal 91 is stated. We seek clarification that a respondent’s participation and potential selection in the Cruise T46 process will not restrict or limit the respondent’s ability to participate in a potential Terminal 91 process [the competing ports within the same destination will be a critical issue for lenders – as well as commercially in particular as minimum passenger guarantees are required. As the Terminal 91 lease expires end of 2019, the two processes will likely be run in parallel. 

 

The Port does not have any additional information to provide at this time.

 

20. Both RCCL, Carnival and NCL are already committed in Pier 91 and Pier 66, respectively. Please inform us about the further demand from their end.

 

Please refer to FAQ question # 6 for the Carnival Lines Preferential Berthing Agreement and The Bell Street Cruise Terminal Lease Agreement with NCLH. The Port does not have any additional information to provide at this time.

 

21. Do the cruise lines benefit from volume based discounts or special prices?

 

Please refer to FAQ question #6 for the Carnival Lines Preferential Berthing Agreement and The Bell Street Cruise Terminal Lease Agreement with NCLH.

 

22. Is there any subsidy given to cruise lines by the authority? If yes, please inform us about the key terms including the end date.

 

Please refer to FAQ question #6 for the berthing and lease agreements.

 

23. Please provide any existing Port of Seattle related cruise agreements.

 

Please refer to FAQ question #6 for the existing Port of Seattle related cruise agreements.

 

24. What would be the purpose of the “competitive selection for a partner at the existing Smith Cover Cruise Terminal at Terminal 91?”   In other words, what does the Port envision for future work at Terminal 91 that would require a new selection process? (RFQ page 6)

 

The Port does not have any additional information to provide at this time. Please refer to FAQ question # 6 for information regarding Terminal 91 existing agreement.

 

Contracting opportunities

 

25. The T46 RFQ refers to work to be conducted by Port of Seattle, including environmental improvements and permitting. Will that work require outside contracting? If so, what contract mechanism (and when) will be used for that work?

 

Environmental review of the project and permitting will be managed by the Port.  The selected partner will inform and collaborate with the Port project team to develop terminal design and operations from which the Port and Partner will develop appropriate environmental review and permitting documents.  The production of required environmental documents will be coordinated by Port staff supplemented with technical and design work by outside consultants as needed. Please use Procurement and Roster Management System (PRMS) to monitor upcoming Port of Seattle procurement opportunities.

 

26. Particularly interested if a CM RFQ will be issued

This RFQ is for an investment partner for the cruise passenger terminal building and related elements, e.g. passenger boarding systems/equipment development. Construction Management for the new cruise terminal building construction is envisioned to be led and managed by the investment partner.  Please use Procurement and Roster Management System (PRMS) to monitor upcoming Port of Seattle procurement opportunities. Please use Procurement and Roster Management System (PRMS) to monitor upcoming Port of Seattle procurement opportunities.

 

27. Will the Port of Seattle have a separate RFQ for design services for the Terminal 46 project or are those services to be included in the current development and operation RFQ?

The Port of Seattle will be seeking Design and Support Services for other project related elements necessary for to the redevelopment of a portion of T46 as a Cruise Terminal through a separate RFQ. This future solicitation is not expected to include the new Cruise Terminal Building, Passenger boarding systems or cruise operations equipment. Please use Procurement and Roster Management System (PRMS) to monitor upcoming Port of Seattle procurement opportunities.

 

RFQ Process 

 

28. Under Section E. it asks to provide three case studies of completed cruise terminal projects. Can this be achieved by any combination of the team members? i.e. one project from contractor, two from architect or vice versa?

Yes – As stated in Section E: Provide up to three case studies of successful completion of new cruise terminal project/s where the respondent or team members had a primary or secondary role in project completion.

 

29. I am contacting you to arrange for a tour of one of the Port of Seattle’s existing cruise terminals this week.  This will be helpful in putting together our company’s proposal for Terminal 46.

The Port will not be providing tours or access to the facility prior to the RFQ submission deadline.

 

30. Could we please have more information about the possibility to change the structure of the team members during the RFP process? To be more precise, is it possible to include or remove some of the team member(s) if the Respondent is qualified?

Yes, the structure and specific team members may be changed during the RFP process. Material changes could affect the outcome of the selection process.

 

31. On page 13 of the RFQ, what is the definition of lead respondent?

The lead respondent is the party providing or securing the development capital.  If this is a joint venture, describe the legal relationships or proposed relationships between the team members.

 

32. Will terminal development experience that includes other types of marine terminals such as container, break-bulk, or roro, be scored equally or similarly to cruise terminal development project experience (Section E)?

Section E will be scored based on cruise terminal development experience.

 

33. It is noted that all RFQ submissions will be provided to all respondents. Are there mechanisms for a respondent to ensure certain disclosures remain confidential in order to protect competitive practices? Will appendix sections such as equity or debt commitment letters also be provided to all process participants?

Note that all information may be subject to the Public Records Act.  However, the contents of the appendix and certain financial information described in the Section V. G. “Funding Approach,” including the following, will be excluded from the submission information that will be provided to all respondents.

1.  In the appendix:  Information that is allowed in an appendix described on p. 20 of the RFQ Section F 2.a., and
2. Not in the appendix:  Information related to equity provided on p. 15 Section V G third bullet.
“For equity investment, identify the source or sources of equity funding and provide a letter from an authorized officer of the funding party indicating the maximum amount of funding that could be committed to the Cruise Terminal Project.

 

  • If additional approvals are required prior to the commitment of    funds, state the steps necessary to such approval.
  • If an investment fund is intended as a source of equity, provide the statement of investment criteria associated with the fund, the terms of the fund capital raised, and a statement that confirms a cruise terminal is consistent with the investment criteria.
  • Provide a range of required equity returns from cruise terminal revenues necessary to secure the indicated equity investment. Provide a range of annual passenger and/or dockage fee income the respondent will require per $1 million of capital funding provided to the project."

34. What teams were shortlisted from the RFQ process?

On May 6, the Port of Seattle announced the three teams to move forward in the partnership selection effort to develop and operate a new cruise terminal at the north end of Terminal 46. Please see here for more information.

 

Business terms and funding

35. On page 11 of the RFQ, it is stated “... minimum annual guarantee of passengers to the Port”. Does this mean that only the Respondents who have cruise lines as a team member will be taken into consideration for qualification, or would a minimum passenger guarantee by a global cruise port operator suffice?  Please clarify.  

Respondents are not required to have a cruise line on their team to be considered.

 

36. Please provide more information about the investment requirements to access the potential investment level.

The $200 million initial estimate for the cruise terminal is based on 0% design and it means to be inclusive of all terminal building and non-terminal building elements, including in-water elements.  The Port has estimated making a contribution of up to $100 million to the project but the actual cost sharing will be based on optimizing Port risk and return.  Respondents are encouraged to modify this assumption based upon their experience with other cruise terminal projects and develop a preliminary funding plan based on this assumption. The Port does not have any additional information to provide at this time.  

 

 

37. Are tariffs approved by the Port Authority and applied to all terminals? Are the tariffs listed on Terminal Tariff No.5 maximum tariffs? If so, please inform us about the tariffs applied in Pier 91 and Pier 66.  

The Port of Seattle Terminal Tariff No. 5 is set by the port and applies to cruise lines that do not have a separate lease or agreement with the port. The Carnival Lines Preferential Berthing Agreement and The Bell Street Cruise Terminal Lease Agreement with NCLH are available through the RFQ website. The rates at a new cruise facility would be negotiated.

The Port of Seattle Terminal Tariff No. 5 can be found here.

 

38. Is it possible to charge additional fees if new services are introduced?

Any additional fees would be negotiated.

39. Are there any existing agreements such as stevedoring to be assigned to the operator? 

No.

 

40. On page 9 of the RFQ it is stated, that the Port would “share in the capital investment and financial return.” In order to develop the intended funding approach for the RFQ submission, we seek clarification to what extent and in which form any public funding contribution is expected to be made available for the project (if any).

 

The $200 million initial estimate for the cruise terminal is based on 0% design and it means to be inclusive of all terminal building and non-terminal building elements, including in-water elements.  The Port has estimated making a contribution of up to $100 million to the project but the actual cost sharing will be based on optimizing Port risk and return.  Respondents are encouraged to modify this assumption based upon their experience with other cruise terminal projects and develop a preliminary funding plan based on this assumption. The Port does not have any additional information to provide at this time.   

 

41. With respect to the Respondent’s Funding Approach, can the Port of Seattle provide an estimated capital requirement range for the Project to be funded by the private partner (as described in the RFQ)? It is noted the Port of Seattle’s marketing materials assume a total $200M project cost and 50/50 public/private funding share.

 

The $200 million initial estimate for the cruise terminal is based on 0% design and it means to be inclusive of all terminal building and non-terminal building elements, including in-water elements.  The Port has estimated making a contribution of up to $100 million to the project but the actual cost sharing will be based on optimizing Port risk and return.  Respondents are encouraged to modify this assumption based upon their experience with other cruise terminal projects and develop a preliminary funding plan based on this assumption. The Port does not have any additional information to provide at this time. 

 

42. Please clarify intended off-season uses for the terminal space. As envisioned in the RFQ, will the successful respondent have access to only the terminal area, and not the berth? Is the successful respondent’s use of the berth restricted to cruise season, and cruise vessels?

 

Use of the terminal in the off-season is encouraged consistent with the Principles outlined in the RFQ package but may be restricted by current land use code. The Port is interested in ideas of off season and secondary use of the new facility including the vessel berth.  

 

43. In the Commission Agenda Memorandum for the March 12, 2019 meeting of the Port

Commission, Port staff indicated that “this project could be delivered at approximately $200 million.”  What was the basis for this calculation including any breakdowns, assumptions, inclusions, exclusions?  For example, does this number include “non-terminal building project elements” or “in-water improvements?”  

 

The $200 million initial estimate for the cruise terminal is based on 0% design and it means to be inclusive of all terminal building and non-terminal building elements, including in-water elements.

Site and project scope

 

44. Would it be possible to use the second berth of the pier, in case of high-demand?  

 

The additional west facing vessel berth space at T46 is not available for cruise use.  

 

45. Would a proposal for the additional capital investment to use the north facing berth (currently used for timber) for cruise vessels be included in the RFQ?  

 

Proposed use and capital investment of the north facing berth will not be a determining factor of the RFQ evaluation.  

46. How many cruise ships are using shore power nowadays? Can the existing cruise piers   offer that service?

 

The Port of Seattle has two berths at Terminal 91 with shore power capability. In 2019, there will be five ships with shore power capability, scheduled to call on Terminal 91.

47. Can the port supply LNG?

 

The Port will not supply LNG. Options for supply of LNG are available in the region.  

48. Please advise if the Port of Seattle is aware of any pre-existing environmental contamination conditions that would need to be addressed within the proposed berths and/or property including substructure and buildings at T46.

 

The Port is not aware of any pre-existing environmental contamination conditions that would need to be addressed within the proposed berths and/or property including substructure and buildings at T46.  In the past we have removed underground storage tanks used for fueling.  These tanks were handled following the UST procedures in the Washington state regulations.  That being said, the site is predominately fill and has been used for industrial purposes, so there is a chance unknown contaminated soil or groundwater could be encountered.

49. Please provide existing Port of Seattle agreements related to T46.

 

On April 2, 2019, the Northwest Seaport Alliance (NWSA) approved the termination of the current lease with Total Terminals International, LLC and approved an Interlocal Agreement (ILA) between the NWSA and the Port of Seattle for the use of a portion of Terminal 46 as of January 1, 2020.  The ILA can be found here.

 

50. Are there any available conceptual drawings, or other plan information, that describes the Port of Seattle’s vision for operating both cruise and general cargo at T46?

Not at this time.

51. Please confirm if the property falls within the 100-year floodplain in accordance with FEMA’s flood map. If so, what are elevation requirements for any new construction on site?

 

The Preliminary FEMA coastal flood insurance study of 2013 has the Puget Sound near T46 mapped as a coastal flood zone with a velocity hazard (VE) and a base flood elevation of 14 feet North American Vertical Datum (NAVD) 88. Seattle Department of Construction and Inspection assumes 28 inches of sea level rise during the life of a structure.  The elevation of the wharf at the north end is 16.03 feet NAVD 88 and at the south end is 14.61 feet NAVD 88.

52. What is meant by “appropriate level of control” over “mobility of people and goods, transit and parking” (RFQ page 9)?

 

This is subject to negotiation consistent with the Port's Principles described in the RFQ package, Section II. 2. 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."

 

53. The Port intends to lead the environmental permitting for the facility (RFQ 9).  Please confirm whether the Port will meet all of the costs associated with the environmental permitting?

 

Initial environmental review of the project and in-water and land use permits will be managed and paid for by the Port.  Building permits associated with infrastructure improvements (landside site improvements, transportation/pedestrian access improvements, and electrical upgrades) will likely be managed by the Port.  Cost for permitting and design for landside improvements, access improvements, and electrical upgrades will be negotiated with the selected partner. The Port anticipates that the Partner will manage and pay for building permits related to the terminal building and associated terminal operations.  However, the Port is open to other divisions of responsibilities. 

 54. Please provide a matrix of responsibilities (as between the Port and the tenant and any other relevant party) with regard to any permits required for the Project development.

 

This is to be negotiated.

 55. Please clarify what is included in the “non-terminal building project elements” and the “in-water improvements” and whether the private partner would have any role in their construction. (RFQ page 9).

 

Non-terminal building and in-water project elements that Port anticipates managing and paying for include work mentioned in FAQ question #52 and may include roadway and transportation related improvements (on and offsite), utilities infrastructure (new substation, substation upgrade, power, water, sanitary sewer, gas), lighting, landscaping, cruise shorepower, cruise fendering, and mooring system/apron structural upgrades.  However, the Port is open to other divisions of responsibilities.  Detailed roles and responsibilities, including the construction phase level of involvement with the partner, will be further defined and negotiated once the partner is selected.

community

 

56. Are there any existing partnerships between the port and near port communities?

 

The Port works with many communities throughout Seattle and King County. Near the site of the new cruise facility, the Port is closely engaged with several organizations, including board representation on the SODO Business Improvement Area and the West Seattle Chamber. The Port also works with the Alliance for Pioneer Square and the Downtown Seattle Association.

57. Who are the regional tribes and does the port have any existing partnerships with them?

 

There are 29 federally recognized tribes in Washington state. The Suquamish Tribe and Muckleshoot Indian Tribe maintain treaty fishing rights around Northwest Seaport Alliance and Port of Seattle maritime operations which has led to many years of close collaboration, as well as formal agreements, around a variety of issues.

 

 

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