COMMISSION 
AGENDA MEMORANDUM                        Item No.          6e 
ACTION ITEM                            Date of Meeting      October 9, 2018 
DATE:     September 17, 2018 
TO:        Stephen P. Metruck, Executive Director 
FROM:  James R. Schone, Director, Aviation Commercial Management 
James Jennings, Senior Manager, Aviation Properties 
Denise Trogdon, Senior Property Manager 
SUBJECT:  Three Year Extension to the General Services Administration/Transportation Security
Administration (GSA/TSA) Main Lease and the GSA/TSA C1 Building Lease 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to execute Lease Amendment
No. 25 (Exhibit A attached) of the existing Main Lease and Lease Amendment No. 3 (Exhibit B
attached) of the C1 Building Lease with the General Services Administration (GSA) for the
current occupancy of the Transportation Security Administration (TSA). 
EXECUTIVE SUMMARY 
GSA/TSA has two separate terminal space leases with the Port. Those two leases are commonly
known as the Main Lease (7,935 square feet) and C1 Building Lease (10,756 square feet) for a
total of 18,691 square feet of leased space at Seattle-Tacoma International Airport. The Main
Lease will expire on 10/31/2018 and is largely comprised of breakrooms and training spaces
throughout the airport; the C1 Building Lease will expire on 1/21/2019 and covers the
consolidated administration offices within the C1 Building. These two leases exist because the
Main Lease was put in place utilizing existing space soon after 9/11, whereas the C1 Building
Lease was developed as part of a comprehensive lease agreement, put in place back in 2008,
which included a significant tenant buildout. The two leases are written on GSA lease templates
and neither the Port nor GSA wishes to combine the leases into one lease at this time. 
The request is to extend both leases for three years, align their expiration dates, and allow a onetime
option for GSA/TSA to reduce premises in the C1 Building Lease. The leased areas are
spread across the airport, and are depicted on Exhibit C (attached). 
JUSTIFICATION 
The proposed lease extension for each lease is approximately three years and will align both
leases termination dates. The proposed three year term is intended to provide flexibility to
accommodate potential construction impacts of a future C1 Building Expansion Project, subject

Template revised April 12, 2018.

COMMISSION AGENDA  Action Item No. 6e                                   Page 2 of 5 
Meeting Date: October 9, 2018 
to Commission authorization, which would potentially require a complete relocation of all
premises in the C1 Building Lease. It is anticipated that once the potential impacts of the C1
Building Expansion Project are known, a new longer-term lease would be negotiated to reflect
existing and relocated premises. 
Under the C1 Building Lease, GSA/TSA will have a one-time option to reduce the total square
footage leased on or after March 1, 2019. The partial space reduction is only available under the
C1 Building Lease, and is anticipated to occur sometime in mid-2019. TSA has determined that
some of their office space (i.e., non-airport required administration and training areas) do not
need to be on-airport, therefore are anticipated to be relocated to an offsite property. With
airport rates significantly higher than offsite rates, this is not a surprise. Although this will result
in a loss of leased square footage, GSA/TSA rent to the Port will actually increase due to the
increases in rental rates as negotiated by Port and GSA staff. This change in the GSA/TSA
revenue stream has been reflected in the proposed 2019 budget. Additionally, the decrease in
leased area would potentially simplify the phasing complexity of the potential C1 Building
Expansion Project, which Commission approved $500,000 of funds for advance planning in June
of this year.
Lastly, with the significant shortfall of terminal space today, Aviation Properties has already
received requests for potential interim uses of portions of the to-be-vacated area from existing
airport tenants.
DETAILS 
LEASE SUMMARY COMPARISON 
The current terms and proposed amended terms of the two leases are as follows: 
Main Lease             Current terms             Amended terms 
Term                  12/23/2001  10/31/2018        11/1/2018-1/21/2022 
Area Leased                               7,935 sf                      7,935 sf 
(in square feet) 
Annual Rent                          $97.66/sf/yr           $128.85/sf  year 1 
$153.26/sf  year 2 
$161.66/sf  year 3 
C1 Building Lease           Current terms              Amended terms 
Term                      12/1/2008-1/21/2019        1/22/2019-1/21/2022 
Area Leased                          10,756 sf                   10,756 sf 
(in square feet) 
Rent                                 $112.3/sf/yr           $128.85/sf  year 1 
$153.26/sf  year 2 
$161.66/sf  year 3 
Option                                             One time option to reduce
leased  area  on  or  after
3/1/2019 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 6e                                   Page 3 of 5 
Meeting Date: October 9, 2018 

ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Allow the leases to expire 
Cost Implications: None 
Pros: 
(1) Potential for return of terminal space that could be occupied by a tenant not otherwise
accommodated. 
Cons: 
(1) The Port would miss the opportunity to secure the three years of revenue and increase the
rental rate. 
(2) GSA/TSA by policy does not permit holdovers, so the Port would be required to seek a
waiver from GSA/TSA. 
(3) Does not support TSA's mission in managing its facility efficiencies supporting the
critical security function they provide at the Airport. 
This is not the recommended alternative. 
Alternative 2  Extend the two leases for five (5) years. 
Cost Implications: None 
Pros: 
(1) Secures five (5) additional years of revenue. 
Cons: 
(1) Does not meet the TSA's need to increase organizational efficiencies. 
(2) Does not provide the Port with flexibility to develop the C1 Building Expansion Project
schedule. 
This is not the recommended alternative. 
Alternative 3  Execute three (3) year lease extensions for both leases. 
Cost Implications: None 
Pros: 
(1) Satisfies the occupancy needs of TSA to fulfill their critical security function at Seattle-
Tacoma International Airport. 
(2) Provides interim commitment from GSA/TSA for space. 
(3) Secures three years of revenue and increases rental rates over the three year term. 
Cons: 
(1) The space will not be available to potential tenants not otherwise accommodated in the
terminal. 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 6e                                   Page 4 of 5 
Meeting Date: October 9, 2018 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
By extending the two leases for an additional three years, and increasing the negotiated rental
rate (based on Finance and Budget rate forecast), the Port will realize total revenue over the three
year term extension of $8,294,506. If GSA elects to reduce the area leased under the C1
Building Lease on March 1, 2019, total revenue would be reduced by $2,999,562 over the three
year term. This lease extension does not financially obligate the Port in any measurable way. 

Main Lease              Current         Amended Annual
Annual Rent             Rent 
Current annual rent                   $774,932 
Year 1                                                       $1,022,425 
Year 2                                                       $1,216,118 
Year 3                                                       $1,282,772 
Total revenue                                           $3,521,315 
C1 Building Lease             Current         Amended Annual 
Annual Rent             Rent 
Current annual rent                 $1,208,006 
Year 1                                                       $1,385,911 
Year 2                                                       $1,648,465 
Year 3                                                       $1,738,815 
Total revenue                                           $4,773,191 
Combined Rental                                $8,294,506 
Streams 
Less revenue from                                     ($2,999,562) 
anticipated space return
3/1/2019 
Net Total Lease Revenue                                  $5,294,944 

ATTACHMENTS TO THIS REQUEST 
(1)  Exhibit A  Lease Amendment No. 25 to GSA Main Lease 
(2)  Exhibit B  Lease Amendment No. 3 to GSA C1 Building Lease 
(3)  Exhibit C  Graphic depicting spaces leased 

Template revised September 22, 2016; format updates October 19, 2016.

COMMISSION AGENDA  Action Item No. 6e                                   Page 5 of 5 
Meeting Date: October 9, 2018 

PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
Main Lease #000307: 
1)  October 8, 2013, Commission approved Amendment No. 23 of the existing Main Lease
with the Transportation Security Administration represented by the General Services
Administration (TSA/GSA) to extend the term of the lease for five (5) additional years
from 11/1/2013 to 10/31/2018 and decrease the leased premises by 403 square feet. 
2)  October 5, 2010, Commission approved Amendment to extend the lease for an additional
three (3) years and increase the rental rate 
3)  May 12, 2009, Commission approved Amendment 18 to extend the lease for an
additional three (3) years and increase the rental rate, covering hold over period that
expired on October 31, 2010 
4)  September 11, 2007, the Port Commission authorized the construction of tenant
improvements with the General Services Administration (GSA) and the Transportation
Security Administration (TSA) for office space on the Mezzanine Level of the Main
Terminal. 
C1 Building Lease #000995: 
1)  February 24, 2015, Commission approved Amendment No. 1 to construct administrative
office space and tenant improvements, to prepare contract documents; perform
construction services; execute and award outside professional services agreement;
advertise and award major and small works contracts; pre-purchase material and
equipment; provide contract administration and execution on behalf of GSA and TSA for
the construction of tenant improvement requiring an authorization of $1,312,000 of
Tenant Reimbursement CIP funds. 
2)  January 15, 2008, the Port Commission executed a 10 (ten) year Lease Agreement
(Lease) with the United States General Services Administration (GSA), on behalf of the
Transportation Security Administration (TSA) for the construction of tenant
improvements in the C1 Building. 
3)  August 14, 2007, the Port Commission authorized a $6,000,000 Tenant Reimbursement
CIP (CIP C800154). As part of that authorization, Port staff is required to bring any
project requesting funds in excess of $200,000 before the Commission for specific
authorization. 
4)  October 24, 2006, the Port Commission authorized an additional $488,000 to the C1
Project for a total of $1,288,000 for the TSA tenant improvements. This amount is
expected to be fully reimbursed back to the C1 Project by the GSA/TSA, as a part of the
10 year lease agreement with the Port. 
5)  January 31, 2006, the Port Commission authorized the C1 Project to spend $800,000, as
part of a $25,300,000 request for the C1 Building Interim and Final Baggage Screening
Systems project to design and build tenant improvements in the C1 Building on behalf of
the TSA. 

Template revised September 22, 2016; format updates October 19, 2016.