Item No.:         7b _ Supp
Date of Meeting: 7/13/2010

2009 - 2010
Seattle-Tacoma International Airport
Concessions Business
Review & Future Outlook

Sea-Tac's Award-Winning Program
Street-comparable pricing
80 locations airport-wide
Four primes (three food, one retail)
40 direct leases
15 'Disadvantaged Business' locations
State-of-the-Art airport advertising

2

2009 Performance: Sales Per Enplanement (SPE)
Airport          Enplanements  SPE    Top 50 Ranking
SFO        18.5 million  $11.70      3
Portland      7 million      $10.44       6
Reno        2 million     $10.21      7
Las Vegas     22 million     $10.10        9
Seattle        16 million     $9.60         12
LAX         30 million    $8.93       17
Phoenix      20 million    $8.57        27
San Diego    9 million      $8.03        37
Source: Airport Revenue News Annual Ranking 2009

3

Concessions Sales 2004-2009
Primary Sales: Food & Beverage, Retail, Duty Free
Millions                                                             $165M
$180                                         $157M      +5%
+16%               $150M
-9%
$160                              $135M
+18%
$140                   $114M
+15%
$120        $99M
$100
$80
$60
$40
$20
$-
2004       2005       2006       2007       2008       2009


4

Concessions Revenue 2004-2009
Primary Concessions Revenue to the Port
Millions                                                  $22.6M
$21.5M
$25                                             +5%     $20.5M
$18.6M    +16%               -9%
$16.4M    +13%
$20                +22%
$13.4M
$15
$10
$5
$0
2004     2005     2006     2007     2008     2009



5

Concourse A & D Relief Program
Address impacts of airline relocations
Intent to support small operators
Four food units purchased by the Port
12-month relief concluded for Concourse
D on 3/31 and Concourse A on 6/30
Anticipated benefit achieved
Sales stable at lower levels

6

Concourse A & D Relief Program
Tenants paid no 1st of the month
payment (guarantee)
Small operators realized greatest
benefit
Percentage rent paid based on
achieved sales
Benefit ranged dramatically based
on relative impact

7

Reason for Cautious Optimism
Quarterly Sales Developments 2008-2010
1st      2nd      3rd      4th
Quarter Quarter  Quarter Quarter
2008    14%      9%     5%     -4%
2009   -11%    -10%     -9%     -9%
2010     2%


8

Renewed Focus on Marketing
Loss of Momentum in 2009
New Marketing Firm Procurement
Wi-Fi Advertising Launched
Tenant Marketing Workshop
New Strategic Plan
Focus on In-terminal Marketing

9

Mid-Term Refurbishments Underway
14 units in 2010, 18 units in 2011
Improve merchandising, increase sales
Return units to like-new condition
Invest for expansion, efficient operations
Improved, enviro-friendly technology

10

A Place for Small/ACDBE* Business
Develop "right-sized" opportunities
Liaison for FAA & ACDBE tenants
Workshops/Events for Airport ACDBEs
Office of Social Responsibility collaboration
Good relationships established with tenant
community

* ACDBE: Airport Concessions Disadvantaged Business Enterprise

11

2010 New Development in the Works
Duty Free & Specialty Retail (5 units)
ATM and Bank Branch
Concourse C Retail & Kiosk
Pay Telephones
Quizno's Subs (ACDBE subtenant)

12

Duty Free/Specialty Retail RFP
MAP

13

Concessions Team

From left:
Tudor Bleotu
Elaine Lincoln
Castina Ridge
Deanna Zachrisson
Bonnie Darch




14