ITEM NO:    ___6d_Supp_ 
MEETING DATE: June 14 , 2016
Airport Dining & Retail
Opportunities
Authorization Request
June 14, 2016

Agenda
Airport Dining and Retail (ADR) Program
support for the Century Agenda
Commission Guidance and Goals for the ADR
Program
Lease Group #3 Opportunities
Competitive Process Description
Evaluation Criteria
Schedule for Next Steps
New slate of opportunities is ready for the marketplace
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ADR Program support for the
Century Agenda
The redevelopment of the ADR Program supports the
Port's Century Agenda to create 100,000 new jobs.
These opportunities also support a number of the
Century Agenda strategies and objectives:
Advance this region as a leading tourism and
business gateway;
Promote small business growth and workforce
development;
Be the greenest and most energy efficient port in
North America.
ADR advances the Century Agenda
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Commission Guidance for the
ADR Master Plan
Encourage broad business participation;
Use flexible competitive leasing processes to accommodate all
types of business;
Create new opportunities for small, disadvantaged and local
businesses;
Maximize employment continuity for qualified employees;
Continue 'street pricing' of products and services; 
Improve efficiency and affordability in the unit build out
process;
Establish job quality expectations in competitive processes;
Strengthen the local Pacific Northwest sense of place.

Specific Commission guidance for the ADR Program
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Commission Goals for the
ADR Master Plan
Grow sales per enplanement by at least 40 percent;
Reach and remain within the top 10 North American
airports as ranked by sales per enplanement;
Grow gross revenues to the Port by 50 percent;
Grow employment by 40 percent;
Grow the share of sales generated by small,
disadvantaged, and/or local businesses to 40
percent;
Create an aspirational objective of increasing
ACDBE gross sales to 25 percent of total sales.
Specific Commission goals for the ADR Program
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Lease Group #3
Overall Locations




New slate of opportunities is ready for the marketplace
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Lease Group #3
Food Service Large Packages
Large Food Package 1: 5 units including:
a bar with food (CD-7);
a fast casual restaurant serving Asian food (CB-9);
a wine bar with an emphasis on Washington State wines and craft
beers as well as serving food (CC-13);
a combined coffee and bar unit with light food (BC-6); 
a quick service restaurant offering healthy food (CD-2)
Large Food Package 3: 4 units including:
an upscale bar with food (SS-7);
a march (food hall) including a gourmet market and bar (minimum
of wine and beer) (CA-10);
a quick service restaurant focused on Mediterranean or Asian food
(CT-21);
a sushi bar (CT-26)
New slate of opportunities is ready for the marketplace
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Lease Group #3
Food Service Small Packages
Small Food Package 4 with 2 units:
a gourmet coffee and newsstand (CD-8);
a gourmet coffee and newsstand (BC-4) 
Small Food Package 7 with 2 units:
a casual dining restaurant on the Central Terminal mezzanine
associated with a concourse-level unit for a bar, market, and/or
grab'n go options (CT-24 & CT-24MZ);
a bar with food (NS-2);


New slate of opportunities is ready for the marketplace
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Lease Group #3
Food Service Single Units
Single Unit 1: A casual dining restaurant (CT-1, CT-1MZ);
Single Unit 5: A gourmet burger restaurant with a bar (CC-6); 
Single Unit 9: A bistro-style casual dining restaurant (CD-3); 
Single Unit 11: A quick service restaurant serving healthy foods emphasizing
salads (CT-23); 
Single Unit 12: A quick service restaurant serving Italian food/pizza (CT-22); 
Single Unit 15: A quick service restaurant serving seafood (CT-20);
Single Food Unit 16: A diner-style casual dining restaurant (SE-2) 
New slate of opportunities is ready for the marketplace
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Lease Group #3
Retail Large Package
Large Retail Package 1 with 4 units:
a specialty retail store with a local theme (CC-2);
a specialty retail store selling jewelry and/or accessories (CA-9) 
A grab'n go market with coffee, news and sundries(RCF-1);
a convenience store/newsstand (NS-4);




New slate of opportunities is ready for the marketplace
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Competitive Process Overview
Competitive Evaluation Process (CEP)
Simplified process for 1-3 unit opportunities
Tailored to capabilities of small business
Submittals evaluated by team of Port staff and
1-2 community members as advisors

Competitive process reflects Commission guidance
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Competitive Process Overview
Request for Proposal (RFP)
Use for packages with 4 or more units or
single units requiring large investments
Geared toward large companies with small
business participation
Will use same criteria and point allocation as
CEP process
Requires companies to submit greater detail
and demonstrate greater financial capability
Competitive process reflects Commission guidance
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Evaluation Criteria
Company Experience, Financial Capability:    20 points (13%) 
Concept Development:                25 points (17%) 
Unit Design, Materials and Capital Investment:  25 points (17%) 
Financial Projections and Rent Proposal:      20 points (13%) 
Management, Staffing and Environmental:     20 points (13%) 
Job Quality, Employment and Service Continuity: 20 points (13%)
Small Business Participation:             20 points (13%)
TOTAL POINTS                   150 points (100%)

Evaluation criteria balance values important to the Port
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Lease Group 3 Schedule
Projected Date           Action 
May 24, 2016             Briefed Commission on Lease Group #3 opportunities
June 14, 2016             Request for Commission authorization of Lease Group #3
opportunities 
Late June 2016             Advertise opportunities (via leasing website and various
local and national media) 
Late June/Early July 2016      Tours and training sessions for interested businesses 
Late June through late      90 days for proposal preparation
September 2016 
Late September 2016        Responses due 
Late November 2016        Port Evaluation Team completes their decisions 
Early December 2016        Notification to successful proposers 
Update Commission on Lease Group 3 results 
December 2016           Lease negotiations and execution

Efficient schedule from advertisement of opportunities to lease execution
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Questions?



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Lease Groups #1 and #2 Update
Lease Group #1:
Lease agreements were executed on March 31, 2016
Host and Hudson have begun design work
Lease Group #2:
Commission authorized Lease Group #2 on December 4, 2015,
10 opportunities were advertised on December 10, 2015.
Training sessions were held on January 19 and 20, 2016. 157
attendees representing 108 firms attended.
Proposals were submitted on February 22, 2016.

Progress underway on Lease Groups 1 & 2
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2016 Outreach Update
Meetings with representatives of 20 concession
businesses at the Airport Revenue News (ARN)
Conference: Dallas, TX March 6-9
Presentation of proposed Lease Group #3
opportunities to 75 concession representatives
at Airport Council International (ACI-NA)
'Business of Airports' Conference: Orlando, FL
April 4-6
490 companies registered on the ADR leasing
website 
Multi-front effort to reach the community
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Airport Dining & Retail Performance
2015          % Change Compared to
2014 
ADR Total Program Gross Sales                           $271.5 million            9.4% 
ACDBE Gross Sales                                $60.5 million           11.2% 
% of Total ADR Program Gross Sales                                         22.2% 

Small Business Gross Sales                             $67.3 million            13.2% 
% of Total ADR Program Gross Sales                       24.7% 

Local Business Gross Sales                              $64.9 million            11.1% 
% of Total ADR Program Gross Sales                       23.9% 

Total Gross Sales from Small, Local & Disadvantaged Businesses     $118.9 million            12.2% 
% of Total ADR Program Gross Sales 
43.8% 

Sales per Enplanement                               $11.91               (2.0%) 
Rank in U.S. Airports                                  2015 rank not yet available 
As reported by Airport Revenue News 
Employment (fulltime/part-time)                       1,475/342             8%/23% 
ADR Revenue to POS                              $44.77 million          9.1% 
Strong growth in ADR performance metrics
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Food Service  Large Package 1
Lease Terms
Length of Lease: 10 years
Rent to be competitively proposed as either flat or tiered rent
structure
Minimum Capital Investment: $480 - $550 per sq. ft. (6,001 sq. ft.)

CB-9                                              CC-13 



CD-2


CD-7
BC-6

New slate of opportunities is ready for the marketplace
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Food Service  Large Package 3
Lease Terms
Length of Lease: 10 years
Rent to be competitively proposed as either flat or tiered rent
structure
Minimum Capital Investment: $400 - $675 per sq. ft. (10,490 sq. ft.)


CT-26 
CT-21 
SS-7




CA-10 

New slate of opportunities is ready for the marketplace
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Food Service  Small Package 4 
Lease Terms
Length of Lease: 10 years
Rent to be competitively proposed as either flat
or tiered rent structure
Minimum Capital Investment: $400 - $500 per sq.
ft. (2,447 sq. ft.)




BC-4                CD-8

New slate of opportunities is ready for the marketplace
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Food Service  Small Package 7
Lease Terms
Length of Lease: 10 years
Rent to be competitively proposed as either flat or tiered rent
structure
Minimum Capital Investment: $400 - $520 per sq. ft. (9,210 sq. ft.)

CT-24 MZ&
CT-24 

NS-2



New slate of opportunities is ready for the marketplace
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Food Service  Single Unit 1
A casual dining restaurant
Lease Terms
Length of Lease: 10 years
Rent to be competitively proposed as either flat or tiered
rent structure
Minimum Capital Investment: $430 per sq. ft. (10,885 sq. ft.)
CT-1, CT-1MZ




New slate of opportunities is ready for the marketplace
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Food Service  Single Unit 5
A gourmet burger restaurant w/ bar
Lease Terms
Length of Lease: 10 years
Rent to be competitively proposed as either flat
or tiered rent structure
Minimum Capital Investment: $490 per sq. ft.
(1,302 sq. ft.) 

CC-6



New slate of opportunities is ready for the marketplace
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Food Service  Single Unit 9
A bistro-style casual dining restaurant
Lease Terms:
Length of lease: 10 years
Rent proposed as flat or tiered percentage
Minimum guaranteed rent
Minimum capital investment: $550 per sq. ft. (2,306 sq. ft.)



CD-3


New slate of opportunities is ready for the marketplace
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Food Service  Single Unit 11
A quick service restaurant serving healthy foods emphasizing
salads
Lease Terms
Length of Lease: 10 years
Rent to be competitively proposed as either flat or tiered
rent structure
Minimum Capital Investment: $550 per sq. ft. ( 983 sq. ft.)

CT-23 



New slate of opportunities is ready for the marketplace
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Food Service  Single Unit 12
Quick service restaurant serving Italian food/pizza
Lease Terms
Length of Lease: 10 years
Rent to be competitively proposed as either flat or tiered
rent structure
Minimum Capital Investment: $600 per sq. ft. (1,156 sq.
ft.)

CT-22 



New slate of opportunities is ready for the marketplace
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Food Service  Single Unit 15
Quick service restaurant serving seafood
Lease Terms
Length of Lease: 10 years
Rent to be competitively proposed as either flat or tiered
rent structure
Minimum Capital Investment: $600 per sq. ft. (1,142 sq.
ft.)

CT-20 



New slate of opportunities is ready for the marketplace
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Food Service  Single Unit 16
Diner-style casual dining restaurant
Lease Terms
Length of Lease: 10 years
Rent to be competitively proposed as either flat or tiered rent
structure
Minimum Capital Investment: $480 per sq. ft. (2,640 sq. ft.)




SE-2


New slate of opportunities is ready for the marketplace
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Retail  Large Package 1
Lease Terms
Length of Lease: 8 years
Rent to be competitively proposed as either flat or tiered rent
structure
Minimum Capital Investment: $400 - $450 per sq. ft. (4,582 sq. ft.)


CC-2
NS-4



CA-9
RCF-1

New slate of opportunities is ready for the marketplace
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