ITEM NO:    ___7a_Supp_ 
MEETING DATE: May 24, 2016
Airport Dining & Retail 
Opportunities 
Authorization Request 
May 24, 2016

Agenda 
Airport Dining and Retail (ADR) Program support for the
Century Agenda 
Commission Guidance and Goals for the ADR Program 
ADR Performance Metrics 
Lease Groups #1 and #2 Update 
Outreach Update 
Lease Group #3 Opportunities 
Competitive Process Description 
Evaluation Criteria 
Schedule for Next Steps 

New slate of opportunities is ready for the marketplace 
2

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 
3

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 
4

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 
5

Airport Dining & Retail Performance 
2014                2015          % Change 
ADR Total Program Gross Sales                $248.3 million            $271.5 million            9.4% 
ACDBE Gross Sales                       $54.4 million            $60.5 million            11.2% 
% of Total ADR Program Gross Sales                              21.9%                 22.2% 
(Defined by 49 CFR, Part 23) 
Small Business Gross Sales                   $59.5 million             $67.3 million            13.2% 
% of Total ADR Program Gross Sales             23.9%                 24.7% 
(Small Business Standard used by U.S. Small Business
Administration) 
Local Business Gross Sales                    $58.4 million             $64.9 million            11.1% 
% of Total ADR Program Gross Sales             23.5%                 23.9% 
(Brand must be recognized by travelling public as from
Washington State; and the business must be headquartered
in Washington State, or major sales in Washington State) 
Total Gross Sales from Small, Local &            $105.9 million            $118.9 million            12.2% 
Disadvantaged Businesses 
% of Total ADR Program Gross Sales             42.6%                 43.8% 

Sales per Enplanement                    $12.15                $11.91               (2.0%) 
Rank in U.S. Airports                        22nd                   2015 rank not yet available 
As reported by Airport Revenue News 
Employment (fulltime/part-time)             1362/278              1,475/342             8%/23% 
ADR Revenue to POS                    $41.0 million            $44.77 million          9.1% 
Strong growth in ADR performance metrics 
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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 
7

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 
490companies registered on the ADR leasing
website 
Multi-front effort to reach the community 
8

Lease Group #3 
Overall Locations 




New slate of opportunities is ready for the marketplace 
9

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 
10

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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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 
13

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 
15

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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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 
18

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 
19

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 
20

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 
23

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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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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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 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 reflects Commission guidance 
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Established 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%)

Establish evaluation criteria balance values important to the Port 
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Lease Group 3 Schedule 
Projected Date            Action 
May 24, 2016             Brief Commission on Lease Group #3 opportunities 
June 14, 2016             Request for Commission authorization of Lease Group #3
opportunities 
Late June 2016             Advertise opportunities (leasing website and through
various local and national media) 
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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