ITEM NO:    6d_Supp_________ 
MEETING DATE: November 24, 2015 
Street Pricing Policy 
for
Airport Dining & Retail Tenants

Background 
Definition of Street Pricing 
Rationale for Policy 
History of Policy at the Airport 

Street pricing has been an effective policy at the Airport 
2

Local Minimum Wage Ordinances 
City of SeaTac Proposition One 
City of Seattle Minimum Wage Ordinance 
Washington State Supreme Court Ruling 
Staff interpretation of guidance by Port of
Seattle Commission in 2014 ADR motion 

Numerous local government actions affecting minimum wages 
3

Wage increases in 
City of Seattle ordinance 
Large Employer 



Small Employer 



City of Seattle ordinance specifies increases in minimum wage by year 
4

Wage Disparities 
Minimum Wage Comparison - City of SeaTac vs. City of Seattle
$19.00

$18.00                                                                                                   $17.99
$17.57
$17.29
$17.16                (-4%)
$17.00
$16.89
$16.76
(-4%)
$16.49                $16.49
$16.36                 (-4%)                 (-9%)
$16.00                                                                     $16.11                $16.11
$15.98
(-4%)                  (-9%)
$15.73                $15.73
$15.61
(-4%)                  (-9%)
$15.36                $15.36
(-4%)                  (-9%)
$15.00        $15.00      $15.24      $15.24      $15.00                $15.00
(-4%)                  (-9%)

$14.00                                                $14.00
(-14%)
Notes:
- Percentages in parentheses are
$13.00                            $13.00      $13.00
difference of Seattle to SeaTac wages
(-17%)       (-20%)
- For 2017 and onward, assumes 2.4%
CPI-W growth
$12.00                            $12.00
(-27%)

$11.00                  $11.00
(-39%)

$10.00
2014       2015       2016       2017       2018       2019       2020       2021       2022       2023
Seatac      Seattle (Large)      Seattle (Small)
Differences in local ordinances creates disparities in minimum wages 
5

Impact of Wage Disparities 
Profitability of current tenants 
Interest from firms, particularly small, local,
disadvantaged firms in ADR leasing opportunities 



Minimum wage rate disparities could negatively impact ADR program 
6

Recommendation 
A temporary change in the street pricing
policy 
From 12/1/2015 through 12/31/2019,
allow street plus 10% 
Sufficient time for wage rates to equalize 
Return to street pricing on 1/1/2020 

Recommendation designed to support ADR employers and employees 
7