Norwegian Cruise Line to stay in Seattle for next 15 yearsStaff writer ▼ | August 12, 2015
The Port of Seattle signed a 15-year lease with Norwegian Cruise Line Holdings, parent company of Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises.
Deal $73 million dollars of revenue for Seattle port
“We thank Norwegian Cruise Line for their commitment to Seattle and the Alaska cruise business,” said Commissioner John Creighton.
“Cruise in Seattle means $440 million in annual economic impact for this region. This deal means more growth, which means more jobs.”
In addition NCLH will make tenant improvements to the Bell Street Cruise Terminal estimated at $30 million which will significantly expand the portion of the P66 facilities used for processing cruise passengers. Under the new lease NCLH will manage the cruise operations at P66 and will have priority rights to the cruise vessel berth during the cruise season.
The port will operate the facilities outside the cruise season. The capital investment to complete the terminal improvements will be shared between the Port and NCLH. The 15-year business commitment is estimated to generate over $2 billion in total business revenue for the region, nearly 900 jobs, and over $65 million in state and local taxes.
The agreement also includes language that will establish a Project Labor Agreement (PLA) between the tenant’s general contractor and the building trades.
Seattle’s cruise business—currently leading all cruise homeports on the U.S. west coast in passenger volume—is responsible for over 3,600 jobs, $441 million in annual business revenue, and $17.2 million annually in state and local tax revenues.
Each homeport vessel call generates $2.5 million for the local economy. ■