PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       5c 
ACTION ITEM             Date of Meeting   March 26, 2013 

DATE:    March 18, 2013 
TO:      Tay Yoshitani, Chief Executive Officer 
FROM:   Wayne Grotheer, Director, Aviation Project Management Group 
James Schone, Director, Aviation Business Development 
James Jennings, Manager, Aviation Properties 
SUBJECT:  Mezzanine Tenant Relocation (CIP# C800560) 
Amount of This Request:  $335,000       Source of Funds: Airport Development Fund 
Est. State and Local Taxes: $95,500        Est. Jobs Created: NA 
Est. Total Project Cost:    $1,750,000 
ACTION REQUESTED: 
Request Commission authorization for the Chief Executive Officer to design the Mezzanine
Tenant Relocation project in an amount not to exceed $335,000 out of a total estimated project
cost of $1,750,000. 
SYNOPSIS: 
Commission authorization is requested to proceed with design of the Mezzanine Tenant
Relocation project that will relocate Airport Jobs, Port Credit Union and Port Sign Shop tenants 
at Seattle-Tacoma International Airport (Airport). Relocating these non-airline tenants will
provide needed office space for new and existing airlines at the south end of the terminal. 
BACKGROUND: 
An essential element of an airline's operation at the Airport is office space located pre-security to
support the airline's ticketing functions. The proximity of this office space to the ticket counters
is highly important for operational efficiency. The Airport has limited pre-security office space
to support current and future airline needs.
Aviation Business Development recently completed a study of office space in the main terminal
building. This study highlighted the scarcity of suitable space, particularly on the south end
where there is increased demand associated with the international ticket counters, gates and
baggage systems. This demand has been created by a relocation of airlines to the south end of
the main terminal as part of the recent airline realignment moves. Additionally, there are two
major projects for Delta Airlines and United Airlines that are converting office space on the
ticketing level to ticket counter capacity, thereby decreasing the amount of office space on the
south end. 
This project has been developed to meet the increased demand for airline office space at the
south end of the main terminal building at a time when office space on the ticketing level is

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 18, 2013 
Page 2 of 5 
decreasing. This project will relocate three non-airline tenants from 4,500 square feet of space
on the south end of the mezzanine level (one level above ticketing) to locations in the main
terminal building suitable to them yet less desirable for airlines. This space is anticipated to 
accommodate the office space needs of approximately 3-4 airlines. 
This capital project originally had a much higher budget amount ($5 million). This budget 
included supporting infrastructure for a relocation of the USO (also located in the vicinity of
these other non-airline tenants), but it has been reduced significantly to support only the
relocation of Airport Jobs, the Port Credit Union and the Port Sign Shop. It is anticipated that
the remaining scope associated with the USO will come to Commission separately as part of a
lease agreement in the near future. 
This project was included in the 2013-2017 capital budget and plan of finance. 
PROJECT JUSTIFICATION: 
There is limited pre-security office space on the south end of the terminal to support current and
future airline needs. As referenced in the Century Agenda, it is anticipated that the Airport will
continue to see strong international growth, including the likely addition of new international
carriers in the not too distant future. Additionally, airline realignment, Delta Air Lines flowthrough
ticket counter project (Zone 3), and United Airlines ticket counter push-back (Zone 2),
have created a net reduction of approximately 8,500 square feet of airline office space on the
south end of the terminal. Lastly, the Airport has received requests from existing tenants who
have not been able to acquire the desired level of office space to support their airline operations.
In an effort to respond to these current and emerging airline office space needs, the Port is
proposing to relocate three non-airline tenants (Airport Jobs, Port Credit Union and the Port Sign
Shop) who are currently occupying valuable office space on the south end of the mezzanine, to
locations that are better suited for non-airline functions. 
Project Objectives: 
Create available pre-security office space for current and future airline needs on the
south end of the terminal. 
Relocate non-airline tenants' office space and provide like-for-like accommodations for
those tenants who will be relocated. 
PROJECT SCOPE OF WORK AND SCHEDULE: 
Scope of Work: 
Reconfigure and provide needed infrastructure to the north mezzanine for the relocation
of the Airport Jobs Office. 
Reconfigure and provide needed infrastructure to the central mezzanine for the relocation
of the Port Credit Union. 
Reconfigure and provide needed infrastructure to the central mezzanine for future
revenue as a tenant space. 
Reconfigure and provide needed infrastructure to the Concourse A ramp area to relocate
the Port Sign Shop.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 18, 2013 
Page 3 of 5 
Prepare the vacated Airport Jobs office for two new tenants by reconfiguring and splitting
the space into two office spaces.
See Attachment A illustrating the tenant relocations. 
Schedule: 
Commission Design Authorization           March     2013 
Begin Design                        April      2013 
Commission Authorization for Construction     September   2013 
Advertise Construction Contract             September   2013 
Begin Construction                     November   2013 
Project Completion                     June       2014 
FINANCIAL IMPLICATIONS: 
Budget/Authorization Summary:               Capital       Expense    Total Project 
Original Budget                         $5,000,000           $0     $5,000,000 
Budget Decrease/Transfer                  $3,250,000           $0     $3,250,000 
Previous Authorizations                         $0           $0           $0 
Current request for authorization                $335,000            $0       $335,000 
Total Authorizations, including this request         $335,000            $0       $335,000 
Remaining budget to be authorized            $1,415,000           $0     $1,415,000 
Total Estimated Project Cost                $1,750,000           $0     $1,750,000 
Project Cost Breakdown:                   This Request       Total Project 
Construction                                   $0         $1,070,300 
Construction Management                    $128,000         $256,800 
Design                                  $107,000         $107,000 
Project Management                        $100,000        $199,000
Permitting                                     $0           $21,400 
State & Local Taxes (estimated)                       $0           $95,500 
Total                                     $335,000         $1,750,000 
Budget Status and Source of Funds: 
This project was included in the 2013-2017 Capital Budget and Plan of Finance as a business
plan prospective project, CIP #C800560 with a budget of $5,000,000. A total of $3,250,000 will
be transferred to a new CIP to fund future infrastructure for USO relocations that are no longer
part of this CIP. The funding source will be the Airport Development Fund.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 18, 2013 
Page 4 of 5 
Financial Analysis and Summary: 
CIP Category             Renewal/Enhancement 
Project Type              Infrastructure Upgrade & Customer Service 
Risk adjusted discount rate     N/A 
Key risk factors             N/A 
Project cost for analysis        $1,750,000 
Business Unit (BU)          Terminal 
Effect on business performance  Will reduce NOI after depreciation 
IRR/NPV             N/A 
CPE Impact             CPE will increase by $0.01 in 2014, but no change to
business plan forecast as this project was included. 
Lifecycle Cost and Savings: 
The lifecycle cost and savings of this project will be determined as an element of design. 
Annual Operating and Maintenance Costs should be equal to or less than present costs. 
STRATEGIC OBJECTIVES: 
This project promotes the Port's Century Agenda objective of meeting the region's air
transportation needs at Sea-Tac Airport for the next 25 years by adding capacity for office space 
within the existing main terminal building. As the Port strives to develop new business and
serve 45 to 60 million passengers annually, including doubling the number of international
flights, it is important to provide office space near airline ticketing operations so the airlines can
conduct business efficiently. 
BUSINESS PLAN OBJECTIVES: 
This project supports the Aviation Division's strategic goal of "Anticipating and meeting the
needs of our tenants, passengers, and the region's economy." It facilitates better use of
mezzanine office space by locating airline offices closer to their operations and relocating
current tenants to spaces more suitable to their needs, as well. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Alternative 1 
Do nothing. Existing airlines will continue to operate in less than desirable conditions and new
carriers will not have office space available or in a location that is necessary to an efficient
airline operation. This is not the recommended alternative. 
Alternative 2 
Increase the footprint of the main terminal, creating new pre-security office space. This is an
expensive alternative and real estate outside the terminal footprint is very limited and potentially
not available. This is not recommended.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
March 18, 2013 
Page 5 of 5 
Alternative 3 
Relocate non-airline tenants, such as Airport Jobs, the Port Credit Union and the Port Sign Shop,
that reside on the south end of the main terminal mezzanine to other less-congested locations in
the Airport to create more office space for airlines. This is the recommended alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Attachment A: Illustration of tenant relocations. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
None