COMMISSION 
AGENDA MEMORANDUM                        Item No.          10b 
ACTION ITEM                            Date of Meeting      October 26, 2021 

DATE:     September 22, 2021 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Mandy Xiggores, Senior Development Manager  Aviation Capital Programs 
Dawn Hunter, Director Aviation Commercial Management 
SUBJECT:  Concourse A Duty Free (CIP# C801206) 
Amount of this request:                            $475,000 
Total estimated project cost:       $24,000,000 - $42,000,000 

ACTION REQUESTED 
Request Commission authorization for the Executive Director to authorize $475,000 to complete
a Project Definition  Document, and  to  progress  the overall project design to  15%  for  the
Concourse A Duty Free Project at Seattle-Tacoma International Airport. The anticipated total
project cost is in the range of $24M - $42M. 
EXECUTIVE SUMMARY 
A new Duty Free space is needed at the Seattle-Tacoma International Airport. The addition of the 
International Arrivals Facility  (IAF)  provides  gates  on the  A concourse that will become 
internationally capable. This location is ideal to provide a Duty Free service to the travelling
public, ultimately maximizing the Port's non-aeronautical revenue potential. 
To effectively meet the Airport's current and future demands within the existing terminal
footprint, the Airport must engage in thoughtful planning during the project definition phase.
Initial concept development of this space has been completed using staff authorization for
preliminary project design. 
The removal of an existing secure wall is required and will be relocated as shown on the preferred
plan by inclusion of a floor-to-ceiling glass wall, separating the atrium of the GML Hall from the
expanded footprint of Concourse A. 


Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. _10b_                               Page 2 of 5 
Meeting Date: October 26, 2021 
JUSTIFICATION 
The existing Duty Free area on Concourse A does not provide adequate space for current
passenger demand, let alone additional demand expected once IAF opens. Creating this large
walk-through Duty Free retail experience, directly supports the Port of Seattle's dedication to
financial sustainability, as well as to advance the Airport as a leading tourism destination in the
global marketplace. Additionally, the initial designs for this space have carved out specific square
footage for Women/Minority owned Business Enterprises (WMBE) / Small Business opportunities 
as well as a music stage within the Duty Free footprint. 
The Airport currently makes 50% less Duty Free non-aeronautical revenue than comparable U.S. 
Airports. This project combined with the Duty Free in the South Satellite Renovation Program will
meet passenger demand for Duty Free. 

Diversity in Contracting 
The existing contract to be used for this work includes a 15% WMBE Goal, with 24% WMBE
participation anticipated for this Service Directive. 
DETAILS 
Phase 1 of the Concourse A Duty Free Project Definition Document was completed using
staff authorization for preliminary project design. This request is to further refine and
complete the document. 
This project will require buy-out of existing tenant leases (Q2 2023). 
Exploring opportunity for a Tenant Reimbursement Agreement with the new Duty Free
provider to potentially complete base building changes. 
Scope of Work 
The scope of work for the second phase of the Concourse A Duty Free PDD includes the following: 
(1) Preferred Concept Refinements 
(2) Life Safety & Egress Plan 
(3) PDD planning/design for Port base building improvements. 
(4) HVAC and Smoke Control 
(5) Structural Impacts 
(6) Renderings 
(7) Implementation Plan (phasing, schedule, estimate) 
(8) Project Definition Document 



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

COMMISSION AGENDA  Action Item No. _10b_                               Page 3 of 5 
Meeting Date: October 26, 2021 
Schedule 
Completion of the PDD is targeted for Q2 2022. Factors such as level of building improvements 
required, Duty Free vendor solicitation and selection, project delivery method as well as potential
operational mitigations may shift these dates. 
Activity 
Commission design authorization               2022 Quarter 3 
Design start                                       2022 Quarter 4 
Commission construction authorization          2023 Quarter 3 
Construction start                                2023 Quarter 4 
In-use date                                       2026 Quarter 3 
Cost Breakdown                                     This Request           Total Project 
Design                                                    $475,000             $3,993,500 
Construction                                                     $0            $21,647,500 
Total                                                                  $0             $27,276,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
The PDD would be focused on implementing the third, preferred alternative described below. 
Alternative 1  Proceed straight to design 
Cost Implications: $3,993,500 
Pros: 
(1)   Design could begin immediately 
Cons: 
(1)   Project  scope  would  be  developed  during  an  active  design  process,  leading  to
potentially costly design revisions if anything is missed or overlooked very early in the
design process. 
(2)   Much of the PDD process would need to be replicated within the design effort to answer
basic project questions, such as project scope and contracting method; it would just
happen on a more ad hoc basis. 
(3)   Care would need to be taken to address the requirements of all users during design, or
risk costly change orders or operational disruption later. 
This is not the recommended alternative. 
Alternative 2  Create bridging documents for a design/build effort. 
Cost Implications: $1,300,000 
Pros: 
(1)   Would allow project design to proceed up to the 30% level 

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

COMMISSION AGENDA  Action Item No. _10b_                               Page 4 of 5 
Meeting Date: October 26, 2021 
(2)   Usually  allows  for  more deliberate  consideration  of project  requirements  before
obtaining a design/build contractor 
Cons: 
(1)   Ties the project to a design/build method of construction 
(2)   Usually leads to offering each of the design/build teams selected in the request for
qualifications a design stipend to cover the design costs associated with their proposed
designs, adding to design costs. 
This is not the recommended alternative. 
Alternative 3  Complete development of the PDD that addresses outstanding life safety,
structural and infrastructure design elements. 
Cost Implications: $475,000 
Pros: 
(1)   Completion of the PDD Level Planning of the structural, building shell and systems
requirements of the preferred Duty Free and Mezzanine lid concept, including an
implementation plan. 
(2)   Allows time to get a Duty Free vendor on board so they can weigh in on the design of
the space. 
Cons: 
(1)   Design level of the PDD will be lower than the other alternatives, which might introduce
greater design risk than the other alternatives. 
(2)   Overall  a  slower  and  more  methodical  approach,  balanced  against  the  need  to
understand the entirety of the impacts to better prepare a successful Duty Free. 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
We will continue to refine the cost estimate as we move through the PDD process and can apply
more information to the assumptions we've made in our estimates. Estimates included in the
header of the document are based on phase 1 of the PDD and are represented with a range. 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                $25,180,000               $0     $25,180,000 
Current change                                $8,186,000                     $8,186,000 
Revised estimate                              $33,366,000                    $33,366,000 
AUTHORIZATION 
Previous authorizations 
Current request for authorization                  $475,000                0        $475,000 

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

COMMISSION AGENDA  Action Item No. _10b_                               Page 5 of 5 
Meeting Date: October 26, 2021 

Total authorizations, including this request         $475,000                0        $475,000 
Remaining amount to be authorized           $32,925,000             $0    $32,925,000 

Annual Budget Status and Source of Funds 
This project was included in the 2021-2025 plan of budget and finance at the estimated budget
based on conceptual planning (pre-PDD) at $25,180,000. A budget increase of $8,186,000 was
transferred from the Non-aeronautical Reserve CIP (C800754) resulting in zero net change to the
Aviation capital budget. The funding sources will be the Airport Development Fund and revenue
bonds. 
Financial Analysis and Summary 
Project cost for analysis              $$33,400,000 
Business Unit (BU)                  Non-airline 
Effect on business performance     $79,385,000 
(NOI after depreciation) 
IRR/NPV (if relevant)                $25,310,000 
CPE Impact                       N/A 
Future Revenues and Expenses (Total cost of ownership) 
Part of the PDD effort is to begin assessing what effect renovating and renewing the SSAT building
and building systems will have on operating costs and total cost of ownership. This analysis has
not yet been performed. 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 





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