COMMISSION 
AGENDA MEMORANDUM                        Item No.          8h 
ACTION ITEM                            Date of Meeting       May 28, 2024 

DATE :     May 20, 2024 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Eileen Francisco, Director, Aviation Project Management 
Loren Armstrong, Senior Port Counsel 
Pete Ramels, General Counsel 
SUBJECT:  International Arrivals Facility Budget Request (CIP #s C800583, C800781, C800836)
and Authorization to Execute a Settlement Agreement. 
Amount of this request:             $14,000,000 
Total estimated project cost:        $1,010,645,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to increase funding and execute all
necessary activities for the International Arrivals Facility project, at Seattle-Tacoma International
Airport, by $14,000,000, for a new total of $1,010,645,000, and to execute a settlement
agreement to partially resolve the pending litigation. 
EXECUTIVE SUMMARY 
Construction of the International Arrivals Facility at Seattle-Tacoma International Airport is
almost complete, and the facility has been in use since May 2022. Additional budget in the
amount of $14,000,000 is now required to resolve all of the Design-Builder’s claims in the pending
litigation and close out the project. 
The action will approve and fund a partial settlement in the IAF litigation. The settlement resolves
all of the Design-Builder’s claims against the Port arising out of the IAF project, and it resolves
most, but not all, of the Port’s counterclaims against the Design-Builder. The Port’s claims against
the Design-Builder that are not resolved by the settlement agreement and that are still pending
in the ongoing litigation include the Port’s counterclaims for significant damages against the
Design-Builder  related  to  the  Design-Builder’s  failure  to  design  and  build  the  IAF  to
simultaneously accommodate 20 widebody aircraft. 
Pursuant to the settlement agreement, the Port will pay the Design-Builder an additional
$13,791,461.13 (the “Settlement Funds”). Because the Port believes that any additional amounts
owed by the Port are owed to subcontractors because of COVID-19 pandemic impacts to their

Template revised January 10, 2019.

             COMMISSION AGENDA – Action Item No. 8h                                  Page 2 of 2 
Meeting Date: May 28, 2024 
work on the Project, the settlement agreement requires that 100% of the Settlement Funds be
distributed to the Design-Builder’s subcontractors (after payment of applicable sales tax due on 
the Settlement Funds and the payment of the subcontractors’ pro-rata portion of the Design
Bulder’s  fees  and  costs  incurred  to  recover  the  Settlement  Funds  on  behalf  of  the
subcontractors).
Commission was briefed on the settlement agreement in executive session. 
There are no attachments to this memo. 















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