PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5b 
ACTION ITEM              Date of Meeting   June 5, 2012 

DATE:    May 25, 2012 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    James R. Schone, Director, Aviation Business Development 
Deanna Zachrisson, Manager, Aviation Concessions Business 
SUBJECT:  Request to execute a 2-year lease option for Massage Bar Inc. in Concourse C 
and North Satellite at Seattle-Tacoma International Airport 

ACTION REQUESTED:
Request Commission authorization for the Chief Executive Officer to execute one two-year lease
option as provided for in the Lease and Concession Agreement with Massage Bar Inc. The total
lease term, if the option is exercised, is seven years. 
SYNOPSIS:
A five-year lease agreement between the Port and Massage Bar Inc., an Airport Concessions
Disadvantaged Business Enterprise (ACDBE), was executed in 2007. This lease agreement
includes the option for two additional two-year lease term extensions. Staff recommends
exercising one two-year option based on the solid, consistent performance of this tenant in
meeting the needs of the traveling public. The total lease term would be seven years. During the
next two years, staff will work with its third-party planning and leasing support team to
recommend whether to exercise the second two-year lease option or suggest another course of
action for this business opportunity when the Massage Bar lease expires. 
BACKGROUND: 
Massage Bar Inc. currently operates one 1,310 square foot storefront location in Concourse C
(Exhibit A: Concourse C and North Satellite locations) across from the Horizon departure gates,
and one kiosk location in the North Satellite. When Massage Bar began providing massage
services to Sea-Tac travelers back in 1992, the concept was considered an experiment because
there were no other providers of massage services in airports. The New York Times recently
profiled Massage Bar as the pioneer in airport massage. 
Massage Bar was founded by massage therapist Cary Cruea, a Seattle resident and certified
ACDBE. In the last federal reporting year 2010-2011, Massage Bar represented 4.7% of the

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 25, 2012 
Page 2 of 4 

Airport's total ACDBE sales. The company currently employs 48 licensed massage therapists
who work between 15-40 hours per week, which is a typical varied schedule for a massage
therapist. Some employees combine work at Massage Bar with their own private practice. In
most environments, massage therapists are considered independent contractors or sole
proprietors; however, staff at Massage Bar are company employees. The company pays payroll
taxes and offers fully paid or subsidized medical, dental and other benefits. The company has
many tenured employees with over 10 years of employment with Massage Bar.
After 20 years at the Airport, Massage Bar has an extremely loyal local following. The success
of the Massage Bar Frequent Massage punch card program illustrates the dedication of their
customers. Every day, Massage Bar accepts 5 -6 punch cards that provide the traveler with a free
massage after 10 paid massages. Massage Bar typically performs 200-350 chair massages per
day. Some Concourse C Massage Bar customers are frequent Horizon commuters that may visit
two or three times a week. Both the storefront and kiosk locations are ideally suited for serving
the short-haul traveler. 
The market void in airport massage back in 1993 allowed Massage Bar the ability to gain a
footing in multiple airports. Today, Massage Bar is located in eight airports, including Boise
International Airport and Sacramento International Airport.
There are only two other competitors within this market segment. One larger company is
headquartered in New York City and operates 34 U.S. airport locations and three in Europe. The
other company is headquartered in Paris, France. It operates 26 European and five U.S. airport
locations, including Boston Logan International and Baltimore Washington International Airport. 
Although both of these firms offer similar quality services, there is no reason to believe that they
would provide higher revenues or a superior experience for the Seattle traveler than the local
alternative. 
With the execution of the two-year lease option, Massage Bar would be under a lease and
concession agreement until the middle of 2014. For this reason, it is easily accommodated in the
current master planning work for the future of the concessions program in 2015 and beyond. 
Although its expiration will be close to the time the majority of other concessions leases will
expire, it is one of only two storefront passenger service concessions. 
The other service concession, butter LONDON (manicures) is located adjacent to Massage Bar. 
Massage Bar derives significant synergies from this proximity due to their complementary 
services. Massage Bar also will be located next to the future Beecher's Handmade Cheese,
expected to open in September. Food service in the immediate proximity is an offering that
Massage Bar eagerly anticipates. For the Airport, these businesses will become a 'street' of
desired local concepts at the head of Concourse C.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 25, 2012 
Page 3 of 4 

FINANCIAL IMPLICATIONS: 
Financial Analysis Summary: 
The financial benefit to the Port with regard to sales performance and percentage rent is
commensurate with the U.S. airport market, i.e., other airports are seeing similar levels of sales
performance and receiving similar percentage rents. The summary below outlines the most
recent annual performance and financial return from the operation. 

Terms          Massage Bar 
Store Open         June 27, 2007 
Initial Investment     $462,000 
from Lessee 
Term Length       5 years with two 2-year options 
2011 Sales         $1.9 million 
% Rent           12% of gross sales from massage services 
15% of gross sales from other related retail 
Minimum Annual   The tenant guarantees 85% of the previous year's rent payments to
Guarantee (MAG)    the Port, payable monthly. 
Marketing         0.5% of gross sales to joint concessions marketing fund not to exceed
$24,000 annually. 
Storage           94 square feet of storage at $7.75 per square foot 
2011 Port Revenue    $261,500 
STRATEGIC OBJECTIVES: 
The approval of this lease option meets the following Port strategic objectives: 
Maximizes financial performance by meeting customer demand for massage services. 
Provides compelling customer and community value by retaining a locally-owned and 
operated airport brand concept at the Airport. 
Supports business opportunity for a proven local small business operator that has proven to be
successful in the airport environment.
Continues to provide opportunities for new employees and suppliers to this business. 
Massage Bar Inc. supports the Airport's achievement of its federally mandated ACDBE
participation requirement. 
Massage Bar Inc. supports 48 local full and part-time employment opportunities at the Airport
location. In addition, the Seattle headquarters office employs seven full-time employees.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 25, 2012 
Page 4 of 4 

ENVIRONMENTAL SUSTAINABILITY: 
The interior of Massage Bar's Concourse C unit was designed and built as a 'green build' to
the greatest degree possible with cork floors, bamboo woods and recycled glass tiles. The
unit is in excellent condition after five years with regular maintenance. There is an
environmental lifecycle benefit with a continued lifespan for this investment.
BUSINESS PLAN OBJECTIVES: 
This concession will contribute to achievement of the Airport's business plan objective of
"maximizing non-aeronautical net operating income" by generating estimated non-aeronautical
revenues of nearly $600,000 for the two-year option period. 
Per Federal Aviation Administration rules, non-aeronautical revenues must be retained for use at
the Airport. These revenues are critical to the daily operations, on-going maintenance, and
future development of the Airport, as well as to the economic vitality of the Puget Sound region. 
ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Do not execute the two-year lease option for Massage Bar and close the unit at the end of its
lease. It is unclear what other potential use would better serve the traveling public, therefore
an analysis would be conducted to determine another use. This is not the recommended
alternative. 
Place this tenant's lease and concession agreement in month-to-month status until the
concessions third-party leasing agent can determine if another competitor to Massage Bar
would be a better candidate for this passenger service. This is not the recommended
alternative. 
Execute the two-year lease option for Massage Bar to remain in business until mid-2014. 
During the next two years, staff will analyze the future of this business concept at the Airport
and make a recommendation to be included in the future Concessions Master Plan. This is
the recommended alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Exhibit A: Concourse C and North Satellite locations. 
Exhibit B: May 2, 2012, article in the New York Times. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
None.