ITEM NO:      6b_Supp 
MEETING DATE: June 27, 2017
Airport Dining & Retail
Lease Group 4 Opportunities
Authorization Request
June 27, 2017

Agenda 
Commission Guidance and Goals for the ADR Program
Lease Group 4 Opportunities
Competitive Process Description
Evaluation Criteria
Schedule for Next Steps


Providing new dining and retail opportunities at the Airport
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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.
Support a mix of businesses that create quality jobs
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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.
ADR opportunities grow with the Airport
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Lease Group 4 Packages
Category               Package #            # of Locations (Unit #)          Approximate sf
Food &Beverage           LG4 CEP F-1                1 (NS-3)                     1,400
LG4 CEP F-2                  1 (NS-1)                       1,300
LG4 CEP F-3                 1 (CT-18)                       1,600
LG4 CEP F-4                  1 (CC-11)                      2,800
LG4 CEP F-5               2 (NE-3, CB-3A)                    3,000
LG4 CEP F-6                2 (NE-4, CC-10)                     1,450
LG4 RFP F-7             4 (CA-13, BC-2, NS-2, CD-1)                 5,800
Retail                    LG4 CEP R-1                     1 (CT-8)                           1,500
LG4 CEP R-2                 1 (CB-3B)                      1,100
LG4 CEP R-3                  1 (CT-9)                       2,100
LG4 CEP R-4                 1 (CT-16)                      2,400
LG4 RFP R-5           5 (CB-1, CC-4, CC-9, HS-2, CT-25)                3,200
New slate of opportunities is ready for the marketplace
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Lease Group 4 Opportunities


Lease Group 4 opportunities are spread throughout the terminal
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Lease Group 4 Food & Beverage Packages
LG4 CEP F-1: 1 unit - a fast casual restaurant with an open concept (no restrictions) (NS-3) 
LG4 CEP F-2: 1 unit - a gourmet coffee stand (NS-1) 
LG4 CEP F-3: 1 unit - a wine bar with food and beer (CT-18) 
LG4 CEP F-4: 1 unit - a casual dining restaurant with an open concept (no restrictions) (CC-11) 
LG4 CEP F-5: 2 units including:
a gourmet market with a deli (CB-3A); 
a gourmet market with a bar (NE-3) 
LG4 CEP F-6: 2 units including:
quick service delis (NE-4 and CC-10) 
LG4 RFP F-7: 4 units including:
a bar with food (CA-13);
a gourmet coffee unit (BC-2);
a bar with food (NS-2); 
a quick service restaurant with a chicken or BBQ concept (CD-1) 
New slate of food and beverage opportunities
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Lease Group 4 Retail Packages
LG4 CEP R-1: 1 unit  a local theme (CT-8) 
LG4 CEP R-2: 1 unit  an open concept (no restrictions) (CB-3B)
LG4 CEP R-3: 1 unit  life style/adventurewear apparel (CT-9) 
LG4 CEP R-4: 1 unit  life style/adventurewear apparel (CT-16) 
LG4 RFP R-5: 5 units including:
an open concept (no restrictions) (CB-1);
an open concept (no restrictions) (CC-4);
jewelry/accessories (CC-9);
newsstand with coffee (HS-2);
jewelry/accessories (CT-25 

New slate of retail opportunities
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Solicitation Process Overview
Competitive Evaluation Process (CEP)
Simplified process for 1-3 unit opportunities
Tailored to capabilities of small business
Request for Proposal (RFP)
Used for packages with 4 or more units or a single unit requiring large
investments
Tailored to capabilities of large companies with small business participation
Requires companies to submit greater detail and demonstrate greater financial
capability
Competitive process reflects Commission guidance
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Proposed Changes to LG 4 Solicitation Process
CEP and RFP
Proposition 1 Compliance: Firms who are not fully compliant with Prop 1 back wages and
benefits will be disqualified from participation.
Scoring the Quality Jobs Criterion: A greater emphasis will be placed on proposed wages
and medical/retirement benefits in the scoring of this criterion. A quantitative-formula-
based methodology will be utilized for evaluating wages and medical/retirement benefits.
Scoring the Small Business Participation Criterion: The scoring system will be revised as
follows:
Small businesses that propose directly will still automatically receive 10 points.
Prime operators that propose a joint venture with a small business 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 receive 5 points.
Competitive process reflects Commission guidance
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Proposed Changes to LG 4 Solicitation Process
CEP and RFP (cont'd) 
Preference for Local Concepts: 10 points of the Concept Development criterion (25
points total) will be allocated to the evaluation of the concept as it pertains to creating a
Northwest Sense of Place within the Airport.
Labor Peace Agreements: A labor peace requirement will be implemented as follows:
All non-exempt respondents must submit a labor peace agreement with their
proposal.
The Port would have no role in reviewing or establishing the terms of these
agreements.
Small businesses which have 35 or fewer badged airport employees would be
exempted.
Small businesses that operate franchises of national brands would not be exempted.
Competitive process reflects Commission guidance
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Proposed Changes to LG 4 Solicitation Process
CEP and RFP (cont'd) 
Non-competitive selection of ADR tenants:  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.



Competitive process 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%)
*scoring criteria modified based on recommendations to solicitation process
Evaluation criteria support Commission priorities
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Lease Group 4 Schedule
Projected Date                                 Action 
June 13, 2017                                   Briefed Commission on         Lease Group 3 results, insights from the LG 3
solicitation process and proposed leasing opportunities in Lease Group 4 
June 27, 2017                                   Request Commission authorization to solicit proposals for Lease Group 4
opportunities 
June 30, 2017                                   Advertise opportunities (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 
End of September, 2017                       Responses due 
Early December, 2017                          Port teams complete their evaluations 
Late December 2017/Early January 2018       Notification to preferred respondents 
Update Commission on Lease Group 4 results 
January/February 2018                        Lease negotiations and executions 

Lease Group 4 is ready for release
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APPENDIX

New slate of food and beverage opportunities is ready for the marketplace
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New slate of food and beverage opportunities is ready for the marketplace
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New slate of food and beverage opportunities is ready for the marketplace
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New slate of food and beverage opportunities is ready for the marketplace
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New slate of food and beverage opportunities is ready for the marketplace
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New slate of food and beverage opportunities is ready for the marketplace
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New slate of food and beverage opportunities is ready for the marketplace
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New slate of retail opportunities is ready for the marketplace
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New slate of retail opportunities is ready for the marketplace
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New slate of retail opportunities is ready for the marketplace
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New slate of retail opportunities is ready for the marketplace
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New slate of retail opportunities is ready for the marketplace
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