Item No.:           6e_attach 
Meeting Date:      December 2, 2014 
Doug Fox Site Improvements, 
Lease Amendment and 
Property Transfer

Doug Fox Parking Lot 
N 
S 160th St 




Doug Fox Parking
Lot 

S 170th St

Most Recent Commission Actions 
7/9/2014: Commission approved lease with
ATZ, Inc. and a total project cost of $5.118
million 
10/8/2013: Commission approved increase
to project costs, total of $6.503 million 
Net Present Value: $3.46 million 
Internal Rate of Return: 11.1% 
Payback Period 8 years

Doug Fox Parking Lot, North End

Construction expected to take up to 6 months
longer than originally planned due to: 
time taken to complete value engineering effort 
increased scope of paving due to unknown
conditions 
delayed permitting from Washington State
Department of Labor and Industries 
weather delays 
constructing improvements to the facility while
maintaining tenant operations 
For this delay, requesting additional $427k. 
Also requesting approval of transfer of sewer
mains and manhole to Valley View Sewer District.

Doug Fox Parking Lot New Operations Building,
South End

Lease specifies relief if project is delivered late 
Have negotiated relief that accounts for delayed project
completion as well as delay in delivering key elements of
the project (signage, operations building and
entrance/exit facility) 
Relief includes 
9 month extension of lease term and equivalent
deferral of increases in percentage rent and Minimum
Annual Guarantee 
Rent and utility credits totaling $25k 
Completion of tenant improvements including
infrastructure for the ATZ security cameras and
variable messaging signs.

With increased construction cost, tenant relief and
updated forecast for revenues from the facility
operator: 
Net Present Value: $1.24 million, 
Internal Rate of Return 9% 
Payback Period 10 years

Future Use of the Property 
Until the Master Plan is completed in 2016, it is
impossible to state future use of property. 
If determined that this can stay as a parking
facility, there are multiple options. 
If determined that there is need as an alternative
use, could end lease after first term and redevelop.

Importance of this Facility 
During the past 15 years, the Doug Fox Parking Lot
has generated nearly $46 million in revenue to the
Port.
The new investment that has been made in this
facility sets it up to be a significant, long-term
contributor of non-aeronautical revenue.