COMMISSION 
AGENDA MEMORANDUM                        Item No.          10d 
ACTION ITEM                            Date of Meeting     November 9, 2021 

DATE:     October 29, 2021 
TO:        Stephen P. Metruck, Executive Director 
FROM:    James Jennings, Director, Aviation Business and Properties 
Wayne Grotheer, Director, Aviation Project Management Group 
SUBJECT:  North Main Terminal Redevelopment Program   Remaining Design Funding
Authorization (C801204) and approval of a Tenant Reimbursement Agreement with
Alaska Airlines 
Amount of this request:                 $21.5 million 
Total estimated project cost:      $350 - $450 million 
ACTION REQUESTED 
Requesting Commission authorization for the Executive Director to fund $21.5 million for the
remaining design for all phases of the North Main Terminal Redevelopment Program, at the
Seattle-Tacoma International Airport,  and execution of a  second Tenant Reimbursement
Agreement with Alaska Airlines to complete the remaining design scope. 
EXECUTIVE SUMMARY 
The Port of Seattle and Alaska Airlines have partnered to redevelop the north end of the Main
Terminal at the Seattle-Tacoma International Airport (Airport) to improve passenger processing,
security screening throughput and the overall passenger experience. On April 27, 2021, the
Commission authorized up to $10 million to complete the Program Definition Document (PDD)
and develop the 30% design for the full program. With both the PDD and 30% design now
complete, this request will enable Alaska's Progressive Design Build (PDB) team to continue
developing the design for the full program. The amount of this request is $21.5 million. The
current cost estimate for the full program, including Port soft costs, is between $350 - $450 
million. 
JUSTIFICATION 
The original 1968 design of the Main Terminal was based on an anticipated design capacity of 25
Million Annual Passengers (MAP). With the existing passenger volume nearing 50 MAP, the
ticketing area used by Alaska at the north end of the Main Terminal regularly experiences serious
overcrowding during peak departure periods throughout the day and is in dire need of critical
code upgrades and an aesthetic refresh. It is also important to note that the Port anticipates

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. _10d__                              Page 2 of 7 
Meeting Date: November 9, 2021 
completing similar improvements for the remainder of the ticketing level to the south (called the
Main Terminal Upgrade Program). This future Port project will be coming forward to Commission 
separately at a future date. 
Although a previous Alaska project to create a flow-through passenger check-in and bag drop
configuration in their ticketing area addressed earlier  passenger queuing and processing
deficiencies, more than 10 years later the ticketing area is again in need of modernization to
address existing and projected passenger volume increases, keep pace with technology advances 
and improve the overall passenger experience. 
Lastly, with only 5 lanes in its current configuration, Security Screening Checkpoint #5 has long
been unable to accommodate increased passenger volumes, regularly resulting in a processing 
bottleneck during peak travel periods that creates further delays for departing passengers. 
This program supports the Port's Century Agenda's strategic goal of "Advancing this region as a
leading tourism destination and business gateway" by: 
Continuously improving operational efficiency and customer experience at the Airport. 
Strengthening the competitiveness of the Airport in the regional and global
marketplace. 
Meeting the region's air transportation needs by delivering vital facilities and
infrastructure in a sustainable and cost-effective manner. 
Diversity in Contracting 
Diversity in Contracting has established a Women/Minority Business Enterprise (WMBE) goal of
15% for the Port's consultant support procurement. Alaska has separately established a 20%
WMBE goal for their consultant support and Progressive Design Build (PDB) project delivery
method procurements for construction. 
DETAILS 
Alaska is completing this work under a multi-phased Tenant Reimbursement Agreement (TRA)
using the Progressive Design Build (PDB) project delivery method. 
To execute the program, Alaska procured through a competitive process the following services: 
1.  Progressive Design-Builder (DB) 
2.  Project Management Support Services (Tenant Relocations) 
3.  Project Controls Management 
4.  Operational Readiness, Activation and Transition (ORAT) Support Services 
5.  Financial and Cost Support Management (TRA) 
6.  Project Manager Baggage Improvements 
7.  Project Labor Agreement Administrator 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. _10d__                              Page 3 of 7 
Meeting Date: November 9, 2021 
The work is currently broken down into two distinct phases. 
Phase 1 will build out key enabling scope, largely comprised of converting the 
undeveloped Promenade level into usable space for Alaska and other Port tenants. 
Phase 2 will reconfigure the Mezzanine, Ticketing and Baggage Claim levels at the north
end of the Main Terminal to complete code enhancements and significantly improve 
passenger processing and security screening capacity. 
This division of the scope is advantageous because it: 
Provides for a clear 'offramp' decision point at the end of Phase 1 in the event either the
Port or Alaska decides not to continue with the Phase 2 scope of work. 
o  Limited elements of Phase 2 work, primarily related to code compliance and the
baggage handling and smoke control systems, are also scheduled to take place in
Phase 1 to mitigate future operational impacts and control costs.
Provides fully functional, value added leasable space, including new check-in and bag
drop locations for Alaska on the Promenade if the decision is made not to proceed with
the Phase 2 scope of work. 
Based on the current schedule for the program, the intent is to return to the Commission for
construction authorization for Phase 1 in the near future, followed by a request for authorization
for Phase 2 construction in Q3 2022, at which time we expect to have a Final Guaranteed
Maximum Price for the overall program. 
Tenant Reimbursement Agreement Plan 
TRA #                  Scope                      Value           Execution 
#1     Project Definition Document & 30% Design   $10 million            10/15/21 
#2     Post 30% full program design                $21.5 million           Q4 2021 
#3     Projected Phase 1 construction              $TBD              Q4 2021/Q1 2022 
#4     Projected Phase 2 construction              $TBD                  Q3 2022 
To ensure clear project decision points and to ensure there are key concurrence milestones 
between the Port and Alaska, the reimbursement of project funds to Alaska is projected to
happen in phases (as outlined above). The first TRA, to complete up to 30% design was approved
by Commission, on April 27, 2021, for an authorization of up to $10M for both Alaska and Port
costs. The second TRA, reflected in this request, will authorize an additional $21.5M to complete
the remaining design of the overall project. Staff anticipates returning to Commission, in the near
future, to request authorization to construct Phase 1 of the project via a TRA (value TBD). Staff
anticipates returning to Commission in Q3 2022 to request authorization of the remainder of
construction via a TRA. This multi-phased authorization and TRA approach allows Alaska to
continue to develop work expeditiously, while affording both Alaska and the Port clear project
decision points to ensure alignment of scope, schedule, and budget. 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. _10d__                              Page 4 of 7 
Meeting Date: November 9, 2021 
Scope of Work 
This scope of work will complete the design for all phases of the program: 
Phase 1 
(1) Develop the currently unused Promenade Level for Alaska check-in, bag drop and
operations spaces and space to accommodate most of the tenants that will be displaced 
during Phase 2 work 
(2) Buildout existing locations in the Main Terminal to accommodate the remaining tenants
displaced during Phase 2 work 
(3) Modifications/upgrades to existing building systems to support the newly built
Promenade spaces and to mitigate future operational impacts and control costs in
Phase 2 
Phase 2 
(1) Abatement and demolition of a portion of the Mezzanine Level above Alaska ticketing 
(2) Abatement, demolition, and reconfiguration of the north Main Terminal Ticketing Level 
(3) Reconfiguration of the northern-most Mezzanine level 
(4) Expand Security Screening Checkpoint # 5 from 5 to 7 screening lanes 
(5) Installation of new building systems and provide upgrades/modifications to existing
building systems to support the reconfigured spaces on the Mezzanine, Ticketing and
Baggage Claim levels 
Schedule 
The PDB project delivery method involves overlap between many of these milestones, with the
result that some activities in both Phase 1 and Phase 2 will take place concurrently. 
Activity 
Execution of TRA #1                                         2021 Quarter 3 
Commission full program design and TRA #2 authorization    2021 Quarter 4 
Design start  Phase 1                                         2021 Quarter 4 
Commission construction Phase 1 and TRA #3 authorization   2021 Quarter 4/2022 Quarter 1 
Execution of TRA #2                                         2021 Quarter 4 
Construction start  Phase 1                                   2022 Quarter 1 
Execution of TRA #3                                         2022 Quarter 1 
Design start  Phase 2                                         2021 Quarter 4 
In-use date  Phase 1                                         2023 Quarter 1 
Commission construction Phase 2 and TRA #4 authorization   2022 Quarter 3 
Execution of TRA #4                                         2022 Quarter 3 
Construction start  Phase 2                                  2022 Quarter 4 
In-use date  Phase 2                                         2025 Quarter 2 


Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. _10d__                              Page 5 of 7 
Meeting Date: November 9, 2021 
Cost Breakdown                 Previous Requests       This Request         Total to Date 
Complete PDD and 30% Design         $9,000,000               $0          $9,000,000 
Design  Phases 1 and 2                          $0       $16,900,000          $16,900,000 
Port Soft Cost                             $1,000,000         $1,300,000            $2,300,000 
Alaska Soft Cost                                   $0         $3,300,000            $3,300,000 
Total                                     $10,000,000        $21,500,000           $31,500,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Authorize design for Phase 1 only for Alaska's Program. 
Cost Implications: $13 million (includes $8.4 million for design and $4.6 million in soft costs for
Alaska and Port staff) 
Pros: 
(1)   Delays Port commitment to full design for the overall program until 30% design is
reviewed and independent cost estimate is developed. Allows for improved cost
certainty 
(2)   Allows for a better defined offramp between Phase 1 and Phase 2 
Cons: 
(1)   Delays congestion relief 
(2)   Significantly reduces the cost and schedule advantages of PDB project delivery 
(3)   Substantially impacts Alaska's target completion date 
(4)   Costs will continue to escalate 
This is not the recommended alternative. 
Alternative 2  Delay design for Alaska's Program and combine this program's scope with the
Port's future Main Terminal Upgrade Program. 
Cost Implications: $1.2 - $1.5 billion (combined cost of North Main Terminal Redevelopment and 
the Port's Main Terminal Improvement programs) 
Pros: 
(1)   Delay's capital investment for another 12-14 months, and combines both scopes into a
single project for the entire Main Terminal 
(2)   Potentially allows for improved cost certainty 
(3)    Reduces technical challenges of system integration and schedule coordination
between adjacent projects 
Cons: 
(1)   Does not allow Alaska to manage their own operational impacts during construction 
(2)   Delay's congestion relief 
(3)   Eliminates the cost and schedule advantages of PDB delivery 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. _10d__                              Page 6 of 7 
Meeting Date: November 9, 2021 
(4)   Substantially impacts Alaska's target completion date and costs will continue to
escalate 
(5)   Coordinating Alaska TRA and Port capital work would be challenging 
(6)   Significantly reduces the advantages of PDB project delivery 
This is not the recommended alternative. 
Alternative 3  Proceed with full design of Phases 1 and 2 of the Alaska Program. 
Cost Implications: $21.5 million (includes $16. 9 million for design and $4.6 million in soft costs
for Alaska and Port staff) 
Pros: 
(1)   Allows Alaska to manage their own operational impacts during construction 
(2)   More closely aligns with Alaska's target completion date and avoids the cost
escalation penalty associated with Alternatives #1 & #2 
(3)   Provides congestion relief sooner 
(4)   Retains the cost and schedule advantages of PDB project delivery 
Cons: 
(1)   Commits to full program design prior to the Port deciding whether to pursue Phase 2
of Alaska's Program 
(2)   Does not provide optimum cost certainty for Phase 1 work 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary                   Capital   Expense                Total 
COST ESTIMATE 
Early estimated program cost                $350 - $450 million      $TBD   $350 - $450 million 
Current estimated program cost              $350 - $450 million      $TBD   $350 - $450 million 
AUTHORIZATION 
Previous authorizations                             $10,000,000         $0          $10,000,000 
Current request for authorization                    $21,500,000         $0          $21,500,000 
Total authorizations, including this request           $31,500,000         $0           $31,500,000 
Remaining amount to be authorized                       TBD        $0                 TBD 
Annual Budget Status and Source of Funds 
This project was included in the 2021-2025 capital budget and plan of finance with a budget of
$100 million as a place holder. The cost estimate was revised to $350 million in early 2021. A
budget increase in the amount of $250 million was transferred from the Aeronautical Reserve
CIP (C800753) resulting in zero net change to the Aviation capital budget. The funding sources

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. _10d__                              Page 7 of 7 
Meeting Date: November 9, 2021 
will include the Airport Development Fund and future revenue bonds. This project will be 
submitted to the airlines for Majority-In-Interest review in December 2021. 
Financial Analysis and Summary 
Project cost for analysis              $350 million - $400 million 
Business Unit (BU)                  Terminal Building 
Effect on business performance     NOI after depreciation will increase due to inclusion of
(NOI after depreciation)             capital (and operating) costs in airline rate base. 
IRR/NPV (if relevant)                N/A 
CPE Impact                       $1.12 - $1.25 
Future Revenues and Expenses (Total cost of ownership) 
As a result of this project, it is anticipated that there will be increased costs to ongoing operating
and maintenance performed by Aviation Maintenance (AVM), including for mechanical and
custodial costs. Further design is needed to evaluate and better define these impacts. AVM will
continue to work with the program team to ensure that Port standards are incorporated in the
future design.
ADDITIONAL BACKGROUND 
Many of the mechanical, smoke control, fire suppression and architectural updates being
incorporated into the design for the North Main Terminal Redevelopment Program will be
applied throughout the rest of the facility by the Main Terminal Upgrade Program, which is
currently in the Project Definition phase.
The ongoing collaboration between these programs will facilitate continuity of systems and
architectural updates and finishes throughout the Main Terminal, Ticketing and Baggage Claim
Levels. 
This program is also continuing to collaborate on boundary, scope, and schedule coordination
with: 
Baggage Optimization Program 
Main Terminal Low Voltage Upgrades 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
April 27, 2021    North Main Terminal Redevelopment Program   Preliminary Design
(C801204) which authorized up to $10 million in support of the North Main Terminal
Redevelopment Program to complete a Project Definition Document, 30% design and to
execute a Tenant Reimbursement Agreement with Alaska Airlines. 

Template revised June 27, 2019 (Diversity in Contracting).