COMMISSION 
AGENDA MEMORANDUM                        Item No.          6b 
ACTION ITEM                            Date of Meeting       June 27, 2017 
DATE:     June 16, 2017 
TO:        Dave Soike, Interim Executive Director 
FROM:    Lance Lyttle, Managing Director, Aviation Division 
James Schone, Director, Aviation Commercial Management 
Scott Van Horn, Senior Business Manager, Airport Dining and Retail 
SUBJECT:  Airport Dining and Retail (ADR) Lease Group 4 Authorization 

ACTION REQUESTED 
Request  Commission  authorization  for  the  Executive  Director  to  conduct  competitive 
solicitations and execute lease and concessions agreements with selected proposers for 12 new 
opportunities encompassing 21 units in Airport Dining and Retail Lease Group 4 (LG 4): 
Competitive Evaluation Process (CEP) Food  1; 
CEP Food  2; 
CEP Food  3; 
CEP Food  4; 
CEP Food  5; 
CEP Food  6; 
Request for Proposal (RFP) Food  7; 
CEP Retail 1; 
CEP Retail  2; 
CEP Retail  3; 
CEP Retail  4; and 
RFP Retail  5.
This authorization includes the removal of one unit, NS-2, from Lease Group 3 Food Service  
Small Package 7 and insertion of that unit in LG 4 RFP Food  7. 

EXECUTIVE SUMMARY 
The redevelopment of the Airport Dining and Retail  (ADR) Program offers an excellent
opportunity to advance the Port's Century Agenda goals by enhancing the Airport's profile as
the preferred gateway to the Pacific Northwest, by promoting job growth, by creating new
opportunities for small, local and disadvantaged businesses, and by meeting the expectations of
the travelling public for quality food service, retail products, and personal services. 


Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                                 Page 2 of 14 
Meeting Date: June 27, 2017 
This request for authorization of LG 4 marks the next step in the redevelopment of the ADR
Program and is aligned with the guidance and goals provided by the Commission for this
redevelopment.  This request is for authorization to complete solicitation processes and
execute lease and concession agreements within the parameters defined in this memo and in
the attached exhibits for 12 opportunities encompassing 21 units of which 9 are in large
packages (four or more units) that will be competed via Request for Proposals (RFP) and 12 
units in small packages or offered as individual units that will be competed via the Competitive
Evaluation Process (CEP).  The need to request Commission consideration now is based on
several reasons: units where leases have expired and are in holdover or will be expiring close to
the date when firms selected for these opportunities will be ready to start construction as well
as the need to have tenants for new locations in new facilities. 
The proposed 12 new opportunities in LG 4 are: 
1)     Food & Beverage LG4 CEP F-1: a Fast Casual Restaurant with an Open Concept in the
North Satellite (NS-3); 
2)     Food & Beverage LG4 CEP F-2: a Gourmet Coffee unit in the North Satellite (NS-1); 
3)     Food & Beverage LG4 CEP F-3: a Wine Bar with Food and Beer in the Central Terminal
(CT-18); 
4)     Food & Beverage LG4 CEP F-4: a Casual Dining Restaurant with an Open Concept in
Concourse C (CC-11); 
5)     Food & Beverage LG4 CEP F-5: two units including a Gourmet Market and Bar in the
North Esplanade (NE-3) and a Gourmet Market with Deli in Concourse B (CB-3A); 
6)     Food & Beverage LG4 CEP F-6: two units including Quick Service Delis in the North
Esplanade (NE-4) and Concourse C (CC-10); 
7)     Food & Beverage LG4 RFP F-7: four units including a Bar with Food in Concourse A (CA-
13) and in the North Satellite (NS-2), Gourmet Coffee in Baggage Claim (BC-2), and a
Quick Service Restaurant with a Chicken or BBQ Concept in Concourse D (CD-1); 
8)     Retail LG4 CEP R-1: a Specialty Retail unit with a Local-Themed Concept in the Central
Terminal (CT-8); 
9)     Retail LG4 CEP R-2: a Retail unit with an Open Concept on Concourse B (CB-3B); 
10)   Retail LG4 CEP R-3: a Retail unit with a Lifestyle or Adventurewear Apparel Concept in the
Central Terminal (CT-9); 
11)   Retail LG4 CEP R-4: a Retail unit with a Lifestyle or Adventurewear Apparel Concept in the
Central Terminal (CT-16); 
12)   Retail LG4 RFP R-5: five units including a Retail unit with an Open Concept on B
Concourse (CB-1) and on C Concourse (CC-4); a Jewelry/Accessories Concept on C
Concourse (CC-9); a Newsstand with Coffee in the new Concourse D Hardstand Terminal
(HS-2); and a Jewelry/Accessories Concept in the Central Terminal (CT-25). 
Note: See exhibits in the presentation for the location of all units. 


Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                                 Page 3 of 14 
Meeting Date: June 27, 2017 
BACKGROUND 
Commission Guidance and Goals for the ADR Program Redevelopment 
The Commission provided specific guidance and goals for the redevelopment of the ADR
Program in motions that they approved on February 14, 2012 and November 25, 2014: 
Guidance for the ADR Program Redevelopment 
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 Pacific Northwest sense of place. 
Goals for the ADR program to be achieved by 2025: 
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. 
Lease Group 4 
This set of leasing opportunities, referred to as LG 4, is the next step in the implementation of
the ADR Master Plan. It has been constructed in a manner consistent with the guidance
provided by the Commission and is important for the achievement of the goals that the
Commission set for the redevelopment of the ADR Program. It contains a total of 12 
opportunities encompassing 21 units of which 9 are in large packages (four or more units)
which will be competed via Request for Proposal (RFP) and 12 are in small packages or offered
as individual units which will be competed via the Competitive Evaluation Process (CEP). 
The need to request Commission consideration now of LG 4 is based on several reasons. Seven
locations involve Host or Hudson-operated units that were to be given back to the Port earlier
than their original lease termination dates (December 31, 2016 and April 30, 2017 respectively)
as part of the negotiations for their new leases. These give-backs have been delayed due to a
variety of issues associated with the ADR Program redevelopment. Three units are locations in
the North Satellite and need to be ready when that facility opens. The remaining locations are

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                                 Page 4 of 14 
Meeting Date: June 27, 2017 
included due to units where leases are in hold-over or will be expiring close to the date when
those firms selected for these opportunities would be ready to start construction on their units. 
It is important to note that there are several changes that have been made to the proposed
units in LG 4 from what was posted on the ADR leasing website earlier this year. Those
proposed changes are: 
Remove HS-1 from LG 4 due to timing issues; 
Remove NS-2 from a CEP opportunity in LG 3 and add it to an RFP opportunity in LG 4
due to timing issues; 
Remove CC-11 as a unit in an RFP opportunity in LG 4 and create a single-unit CEP
opportunity in LG 4.
The balance between the numbers of units to be competed via RFP versus CEP has been
carefully considered in light of the Commission goal to generate 40% of ADR gross sales by
small, local and disadvantaged businesses and concerns expressed by labor groups about losing
too many represented jobs through the redevelopment effort. Also, several of the units
involved in LG 4 are currently operated by small, local or disadvantaged firms including:
Sub Pop, Coffee Bean and Tea Leaf, Diva Coffee House and Planewear. 
LEASE GROUP 4 OPPORTUNITY DESCRIPTIONS 
Food & Beverage LG4 CEP F-1 
NS-3: a fast casual restaurant with an open concept (no restrictions). This approximate 
1,400 square foot space in the North Satellite is a new location to supplement the
limited food service program in this gate area. This unit is in Phase One of the North
Satellite construction and is scheduled to open in 1st Quarter 2019. 
Lease terms and projected schedule are contained in Exhibit A. 
Food & Beverage LG4 CEP F-2 
NS-1: a gourmet coffee unit of approximately 1,300 square feet in Phase One of the
North Satellite construction. This is a new space in the North Satellite and is scheduled
to open in 1st Quarter 2019. 
Lease terms and projected schedule are contained in Exhibit B. 
Food & Beverage LG4 CEP F-3 
CT-18: a wine bar with food and beer. This is an approximately 1,600 square foot space
located in the Central Terminal. This unit is operated as Vino Volo under a lease that
expired on April 30, 2016 and is currently on a month-to-month holdover. This unit has
a targeted opening date in 1st Quarter 2019. 
Lease terms and projected schedule are contained in Exhibit C. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                                 Page 5 of 14 
Meeting Date: June 27, 2017 
Food & Beverage LG4 CEP F-4 
CC-11: a casual dining restaurant with an open concept (no restrictions). This is an
approximately 2,800 square foot space located on the C Concourse. This unit is
operated as Wolfgang Puck by Seattle Restaurant Associates (SRA) under a lease that
expired on December 31, 2016 and is currently on a month-to-month holdover. This
unit has a targeted opening date in 1st Quarter 2019. 
Lease terms and projected schedule are contained in Exhibit D. 
Food & Beverage LG4 CEP F-5 
This two-unit package includes a total of approximately 3,000 square feet of space as follows: 
NE-3: a gourmet market with a bar. This is an approximately 1,500 square foot space
located on the North Esplanade. This unit is operated as Vintage Washington by SRA 
under a lease that expired on December 31, 2016 and is currently on a month-to-month
holdover. This unit has a targeted opening date in 4th Quarter 2018. 
CB-3A: a gourmet market with deli. This is an approximately 1,500 square foot space
located on Concourse B. This unit is operated as Sbarro by Host under a lease that
expired on December 31, 2016 and is currently on a month-to-month holdover. This
unit has a targeted opening date of 4th Quarter 2018. 
Lease terms and projected schedule are contained in Exhibit E. 
Food & Beverage LG4 CEP F-6 
This two-unit package includes a total of approximately 1450 square feet of space as follows: 
NE-4: a quick service deli. This is an approximately 600 square foot space located on
the North Esplanade. This unit is currently operated as Hudson News under a lease that
expired on April 30, 2017 and is currently on a month-to-month holdover. This unit is
scheduled to open in 1st Quarter 2019. 
CC-10: a quick service deli. This is an approximately 850 square foot space located on 
Concourse C. This unit is operated as Wolfgang Puck by SRA under a lease that expired
on December 31, 2016 and is currently on a month-to-month holdover. This unit has a
targeted opening date in 1st Quarter 2019. 
Lease terms and projected schedule are contained in Exhibit F. 

Food & Beverage LG4 RFP F-7 
This four-unit large package includes a total of approximately 5,800 square feet of space as
follows: 
CA-13: a bar with food. This is an approximately 1,500 square foot space located at
Concourse A. This unit is currently operated as Coffee Bean & Tea Leaf by Concourse

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                                 Page 6 of 14 
Meeting Date: June 27, 2017 
Concessions under a lease expiring on December 31, 2018. This unit has a target 
opening date of 3rd Quarter 2019. 
BC-2: a gourmet coffee unit. This is an approximately 500 square foot space located in
the Baggage Claim area. This unit is operated as Diva Coffee House under a lease that
expired on December 31, 2016 and is currently on a month-to-month holdover. This
unit has a target opening date in 3rd Quarter 2019. 
NS-2: a bar with food. This is an approximately 2,600 square foot in Phase One of the
North Satellite construction. This is a new space in the North Satellite and is scheduled
to open in 1st Quarter 2019. 
CD-1: a quick service restaurant with a chicken or BBQ concept. This is an
approximately 1,200 square foot space located at Concourse D. This unit is operated as
Sports Page Pub by Host under a lease that expired on December 31, 2016 and is
currently on a month-to-month holdover. This unit has a targeted opening date in 2nd 
Quarter 2019. 
Lease terms and projected schedule are contained in Exhibit G. 
Retail LG4 CEP R-1 
CT-8: a retail store with a local theme. This is an approximately 1,500 square foot space
located in the Central Terminal. This unit is operated as Sup Pop under a lease that
expired on September 15, 2015 and is currently on a month-to-month holdover. This
unit has a targeted opening date in 4th Quarter 2018. 
Lease terms and projected schedule are contained in Exhibit H. 
Retail LG4 CEP R-2 
CB-3B: a retail store with an open concept (no restrictions). This is an approximately 
1,100 square foot space located on Concourse B. This unit is operated as Sbarro by Host 
under a lease that expired on December 31, 2016 and is currently on a month-to-month
holdover. This unit has a targeted opening date in 1st Quarter 2019. 
Lease terms and projected schedule are contained in Exhibit I. 
Retail LG4 CEP R-3 
CT-9: a retail store with life style/adventurewear apparel. This is an approximately 
2,100 square foot space located in the Central Terminal. This unit is operated as
ExOfficio under a lease that expired on May 31, 2015 and is currently on a month-tomonth
holdover. This unit has a targeted opening date in 4th Quarter 2018. 
Lease terms and projected schedule are contained in Exhibit J. 


Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                                 Page 7 of 14 
Meeting Date: June 27, 2017 
Retail LG4 CEP R-4 
CT-16: a retail store with life style/adventurewear apparel. This is an approximately 
2,400 square foot space located in the Central Terminal. This unit is operated as Seattle
Taproom by SRA under a lease that expired on December 31, 2016 and is currently on a
month-to-month holdover. This unit has a targeted opening date in 2nd Quarter 2019. 
Lease terms and projected schedule are contained in Exhibit K. 
Retail LG4 RFP R-5 
This five-unit large package includes a total of approximately 3,200 square feet of space as
follows: 
CB-1: a retail store with open concept (no restrictions). This is an approximately 950 
square foot space located on Concourse B. This unit is operated as Planewear under a
lease expiring on October 31, 2017. This unit has a targeted opening date in 4th Quarter
2018. 
CC-4: a retail store with open concept (no restrictions). This is an approximately 850 
square foot space located on Concourse C. This unit is operated as Wolfgang Puck by
SRA under a lease that expired on December 31, 2016 and is currently on a month-tomonth
holdover. This unit has a targeted opening date in 4th Quarter 2018. 
CC-9: a retail store with jewelry/accessories concept. This is an approximately 450 
square foot space located on Concourse C. This unit is operated as Wolfgang Puck by
SRA under a lease that expired on December 31, 2016 and is currently on a month-tomonth
holdover. This unit has a targeted opening date in 4th Quarter 2018. 
HS-2: a newsstand with coffee concept. This is an approximately 550 square foot space
located in the new Concourse D Hardstand Terminal. This unit is scheduled to open in
the 3rd Quarter 2018. 
CT-25: a retail store with jewelry/accessories concept. This is an approximately 400 
square foot space located in the Central Terminal. This unit is operated as Hudson News 
under a lease expiring on April 30, 2017. This unit has a targeted opening date in the 4th 
Quarter 2018. 
Lease terms and projected schedule are contained in Exhibit L. 
Authorization Approach 
The packages with 4 or more units in this lease group will be competed via the Request For
Proposals (RFP) process. Packages of 3 or fewer units and individual units will be competed
using the Port's Competitive Evaluation Process (CEP). The primary differences between the
RFP and the CEP are: 
More experience is required to meet the minimum qualifications; 
Proposers must submit a proposal guarantee along with their proposal; 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                                 Page 8 of 14 
Meeting Date: June 27, 2017 
Documentation must be provided for the proposing organization (Articles of
Incorporation, Joint Venture Agreement, etc.); and 
Additional and more detailed information is required in the proposal. 
Summary of Evaluation Criteria 
The seven evaluation criteria proposed for  scoring  proposals, the proposed total point
allowance of 150 points and the proposed point allocation for each criteria are the same as
used in LG 2 and LG 3. The descriptions below of each criterion summarize the areas that will be
evaluated (detailed submittal requirements will be included in the RFP and CEP documents). 
These criterion have been adjusted to include the guidance (noted in bold) provided by the
Commission on six key policy issues presented at the Commission meeting on June 13, 2017. 
Company Profile, Experience and Financial Capability                           20 points 
The company must demonstrate stability, experience and expertise in operating a similar
business as proposed, in a challenging environment. The proposer must demonstrate that the
company has the financial capacity to fulfill the commitments of an agreement with the Port.
Firms who are not fully compliant with Prop 1 back wages and benefits will be disqualified
from participation. 
The Port has a significant proprietary interest in the success of the ADR Program and so it is in
the Port's best interest to try and eliminate disruptions to our tenants' operations due to
labor disputes that can also negatively impact customers using the Airport as well as airline
operations. As such: 
All non-exempt respondents must submit a labor peace agreement with their
proposal that includes signatures from a senior officer of the respondent's
organization and a labor union that is capable of representing the workers of the
respondent in collective bargaining or already has a collective bargaining
agreement with the respondent. 
The Port will have no role in reviewing or establishing the terms of these
agreements. 
Small businesses (as determined by U.S. Small Business Administration criteria),
which have 35 or fewer badged airport employees, will be exempted. 
Small businesses that operate franchises of national brands will not be exempted. 
Concept Development                                                         25 points 
The proposed concept (or concepts) will be evaluated based on its (their) ability to meet or
exceed the expectations described for the unit or units. The airport is a competitive
environment for the customer's spending, therefore the ability to attract business hinges on
developing a concept with broad and lasting customer appeal. Ten (10) points of the 25 total
points for this criterion will be awarded based on the evaluation of the concept as it pertains
to creating a Northwest sense of place within the Airport. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                                 Page 9 of 14 
Meeting Date: June 27, 2017 
Unit Design, Materials and Capital Investment                                        25 points 
The proposal will be evaluated based on the quality of unit design, efficient use of space,
selection of appealing and durable materials (including sustainable materials) and its reflection
of the Pacific Northwest sense of place, as well as the reasonableness of the proposed capital
investment in the unit(s). 
Financial Projections and Rent Proposal                                                 20 points 
Financial projections and rent proposals will be evaluated based on the reasonableness of the
financial projections and the proposed percentage rent fee. 
Management, Staff, Operations and Environmental Sustainability:                     20 points 
The company must demonstrate its commitment to reliable, safe, clean and well-merchandised
operations, as well as a proactive and consistent approach to preserving the units (including
equipment). The company should detail environmental sustainability measures that it currently
practices or will practice in the operation of the business, including (where applicable)
separation of waste, recycling and compost, and use of compostable materials. 
The company must demonstrate its ability to effectively manage all units and operations,
which also includes quality leadership, adequate levels of staffing, robust training for staff and
incentives for performance. The company must also demonstrate a commitment to employer
philosophies and programs that support a positive work environment and the development of
employees. 
Job Quality, Workforce Training, Employment and Service Continuity:                20 points 
The company must provide information regarding its commitment to employment continuity,
provision of quality jobs, sustainable wages, benefits and Paid Time Off. If the company
anticipates operating four or more units, it also must describe the company's efforts to have
discussions regarding service continuity with labor organizations. Greater emphasis will be
placed on proposed wages and medical/retirement benefits and a quantitative-formulabased
methodology for scoring wages and medical/retirement benefits will be utilized. 
All  solicitations  will  make  clear  that  the  Port  staff  interpretation  of  the  Commission's
expectations regarding quality jobs (as articulated in the November 11, 2015 memo from CEO
Fick to Commission co-presidents - Attachment A) requires respondents to communicate their
commitment to the following: 
For 2017, wages shall be paid at the rate of $15.34 per hour. The wage rate shall be
adjusted on January 1 of each year by the rate of inflation. The increase shall be
calculated to the nearest cent using the CPI (Consumer Price Index) for urban wage
earners and clerical workers, CPI-W, or a successor index, for 12 months prior to each
September 1 as calculated by the US Department of Labor. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                                Page 10 of 14 
Meeting Date: June 27, 2017 
Payment of sick and safe time, which shall be accrued at the rate of one hour for every
40 hours worked. 
Provide health insurance to full-time employees, consistent with the Affordable Care
Act. 
Small Business Participation:                                                          20 points 
The company must indicate whether it is a small business consistent with the requirements of
the U.S. Small Business Administration (SBA). 
The scoring system that was used in LG 3 will be revised as follows: 
A company that qualifies as a small business relative to the standards adopted by the
U. S. Small Business Administration and proposes directly (whether via CEP or RFP),
will automatically receive ten (10) points.
For units competed via CEP, only small businesses that propose directly can receive
the full 20 points for this criterion. 
For units competed via RFP, all companies regardless of size are eligible to receive the
full 20 points for this criterion. 
Prime operators that propose a joint venture with a small business (whether via CEP
or RFP), and that agreement meets the FAA guidelines for joint ventures and includes
a minimum of 20% share of capital investment, will automatically receive 5 points.
Small businesses that operate franchises of national brands will automatically receive
5 points (whether via CEP or RFP). 
All companies, regardless of size, may receive up to ten (10) points, depending on the
degree of commitment, for each of the four small business participation
opportunities (i.e., sourcing, mentoring, product placement, and
design/construction). 
No proposer, though, may earn more than twenty (20) total points for the criterion. 
Finally, while the competitive process may produce results that fall short in achieving key
policy objectives for this program due to the combined criteria used in the scoring process,
staff will retain competition for all LG 4 opportunities. 
Lease Parameters 
Lease term lengths determined by the Port for each opportunity are based upon sales and
investment assumptions, and are presumed to allow a future tenant the ability to amortize the
investment over the life of the lease. The lease term lengths determined for this group of
opportunities also fall within industry standard ranges. 
For these new opportunities, the Port will establish the minimum guaranteed rent for the first
year of the agreement. The purpose of this is to protect the Port's financial interest as well as
to eliminate the minimum guaranteed rent as a factor in the selection process. This is
particularly important for businesses new to the airport that may not have any experience in
proposing minimum guaranteed rents. For the second and subsequent years, the tenant will be

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                                Page 11 of 14 
Meeting Date: June 27, 2017 
required to pay either 85% of the previous year's actual rent payment, or percentage rent
based on gross sales achieved during the year, whichever is greater. 
Interested businesses will propose percentage rent to the Port. Proposers may propose this
either as a flat rent or tiered rent. Each proposer must provide the Port with a pro forma
analysis that can substantiate the sales projections, rent offer, costs to operate the business
(including goods, labor, debt service, etc.) as well as the anticipated profit margin. 
SCHEDULE 
The overall schedule for LG 4 is noted in the table below. The exhibit for each LG 4 opportunity
shows the anticipated timeline for solicitation, award and opening of the units associated with
that opportunity. Upon execution of a lease agreement, the design review and permitting
process can take up to six months followed by three to four months for construction before the
commencement of business. 
Projected Date                      Action 
June 13, 2017                        Briefed Commission on LG 3 results, insights from the
LG 3 solicitation process and proposed LG 4
opportunities 
June 27, 2017                        Request Commission authorization to solicit proposals
for LG 4 opportunities 
June 30, 2017                        Advertise opportunities (ADR leasing website and
through various local and national media) 
July 2017                              Tours and training sessions for interested businesses 
July through September 2017        90 days for proposal preparation 
Late September 2017                Responses due 
Early December 2017                Port Teams complete their evaluations 
Late December 2017/early January   Notification to preferred respondents 
2018                              Update Commission on LG 4 results 
January/February 2018              Lease negotiations and executions 
STRATEGIES AND OBJECTIVES 
The approval of the proposed group of leasing opportunities supports the 25-year vision of the
Port's Century Agenda to create 100,000 new jobs through economic growth led by the Port. 
These opportunities also support a number of the strategies and objectives of the Port's
Century Agenda over the next quarter century: 
Advance this region as a leading tourism and business gateway; 
Promote small business growth and workforce development; and 
Be the greenest and most energy efficient port in North America. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                                Page 12 of 14 
Meeting Date: June 27, 2017 
ALTERNATIVES: 
1.  Delay request for Commission approval of LG4 until later in 2017. 
Economic Implications: A delay in approving LG 4 by three or more months would have
a negative effect on the level of passenger services for the new Phase 1 North Satellite
and new Concourse D Hardstand Terminal opening. In addition, this would affect the
anticipated gross sales for these locations with an estimated loss of $750,000 in monthly
sales ($9 million when annualized) and $75,000 ($900,000 when annualized assuming a
10% concession fee) in revenue to the Port. Furthermore, a delay would also affect the
potential sales and revenue to the Port for the other remaining units in this lease group.
Those losses are estimated to be $125,000 in additional gross sales and $12,500 in
additional revenue to the Port. 
Pros: 
This would allow for more time to determine what worked well with LG 3 and
what changes, if any, to make to LG 4. 
Cons: 
This would mean that Host and Hudson would need to stay in some of their units
longer, delaying the creation of new opportunities for other firms. There are
also firms with single units whose leases are in holdover. They, too, would need
to stay in these units longer, thereby delaying the opportunities for other firms
to compete for these spaces. 
There would be no level of services for passengers in the new phase 1 North
Satellite and Concourse D Hardstand Terminal. 
This is not the recommended alternative. 
2.  Increase the number of units included in packages that will be competed by Request for
Proposal Process: 
Economic implications: There is no economic impact. 
Pros: 
This would be looked on favorably by our labor partners who prefer more units
to be competed in large packages as firms competing for those packages are
likely to already have represented workers. 
Cons: 
This would mean fewer units available for small, local and disadvantaged
businesses to compete for given the higher capital and management resources
necessary to build out 4 or more units. 
This is not the recommended alternative. 



Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                                Page 13 of 14 
Meeting Date: June 27, 2017 
3.  Increase the number of units that will be competed via the Competitive Evaluation
Process: 
Economic Implications: There is no economic impact. 
Pros: 
This would increase the number of opportunities available for small, local and
disadvantaged businesses. 
Cons: 
This would likely lead to our labor partners expressing concerns about too many
units going to firms that don't use represented workers. 
This is not the recommended alternative. 
4.  Reduce the number of units included in Lease Group 4: 
Economic Implications: This would have similar consequences to Alternative 1, a delay
in consideration of LG 4, depending on which units were deleted. 
Pros: 
This would reduce the workload demand on the AV Project Management Group,
Building Department and Fire Department as compared to LG 4 as currently
planned. 
Cons: 
This lease group has been carefully developed with considerations for multiple
variables including: customer service levels, financial viability of packages,
linkages to Host/Hudson/LG 2/LG 3 projects, as well as increasing ADR capacity
to meet increases in passengers as well as installing ADR capacity in new
facilities. Reducing the number of units would negatively affect those variables. 
This is not the recommended alternative. 
5.  Request Commission authorization for the proposed Lease Group 4: 
Economic Implications:  This alternative has the highest financial return to the Port
while minimizing the need to keep Host and Hudson in units that they have relinquished
as part of their new leases to as short a time as possible as well as minimizing the length
of time that firms are in holdover status. It is important to note that we are still refining
the implementation schedule of the proposed LG 4 units, in an effort to balance both
customer levels of service as well as project management workload distribution. 
Pros: 
This set of opportunities has been developed to best meet the needs of the ADR
program. Considerations have included financial viability, build-out schedule,
minimizing location outages and increasing dining and retail capacity to meet the
forecasted growth in passengers. 

Template revised September 22, 2016.

COMMISSION AGENDA  Action Item No. 6b                                Page 14 of 14 
Meeting Date: June 27, 2017 
Cons: 
Disputes that arose from the LG3 process have not been resolved at this point.
However, delaying LG4 will cripple efforts to carry out the airport's ADR program
because there is a great deal of uncertainty as to how much time will be required
for resolution of those disputes. 
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
(1)  PowerPoint presentation 
(2)  Attachment  A:   November  11,  2015,  memo  from  CEO  Fick  to  Commission  copresidents
regarding Quality Job expectations 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
June 13, 2017  The Commission was briefed on outcomes of the Lease Group 3
competitive selection process with a preview of leasing opportunities and
recommendations on key policy issues for use in Lease Group 4 
August 23, 2016  Commission authorized the Airport Dining and Retail (ADR) Lease
Group 3, Large Food Package 3 Addendum 
June 14, 2016  Commission authorized the solicitation of proposals for the Airport
Dining and Retail Lease Group 3 opportunities 
May 24, 2016  Commission was briefed on the lessons learned from the competitive
evaluation process for Airport Dining and Retail Lease Group 2 and the proposed leasing
opportunities for Airport Dining and Retail Lease Group 3 
December 8, 2015  Commission authorized the solicitation of proposals for  Airport
Dining and Retail Group Lease Group 2 
November 24, 2015  A request was made of Commission to authorize the solicitation
of proposals for Airport Dining and Retail Group Lease Group 2 
August 4, 2015  A request was made of Commission to authorize the solicitation of
proposals for Airport Dining and Retail Group Lease Group 2 
February 24, 2015  Commission was briefed on the Airport Dining and Retail Program
Outreach and Leasing Plans 
December 9, 2014  Commission authorized Leases and Lease Modifications for HMS
Host 
December 9, 2014  Commission authorized Leases and Lease Modifications for Hudson
Group 
December 9, 2014   Commission authorized an  Amendment to the Lease and
Concession Agreement with Anton Airfoods (dba Anthony's Restaurant) 
November 25, 2014  Commission approved a Motion Regarding Job Quality 
September 30, 2014  Commission was briefed on the Drivers for Airport Dining and
Redevelopment Phasing Decisions 
May 27, 2014 Commission was briefed on the Airport Dining and Retail Master Plan 
September 11, 2012  Commission was briefed on the Airport Concessions Master Plan 
February 14, 2012  Commission approved a Motion regarding Concessions Program
Guidelines 

Template revised September 22, 2016.