8f. Memo - SEA Employment Center Space Lease

COMMISSION 
AGENDA MEMORANDUM                        Item No.          8f 
ACTION ITEM                            Date of Meeting     November 16, 2021 

DATE :     October 28, 2021 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Luis Navarro, Director Workforce Development 
SUBJECT:  Employment Center Lease at Seattle-Tacoma International Airport 
Total estimated revenue:             $3,442,109 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to negotiate and execute a fiveyear
base lease with two additional option years with the selected entity among for the operation
of the employment center (Employment Center) at Seattle-Tacoma International Airport. 
EXECUTIVE SUMMARY 
On May 11, 2021, the Port Commission authorized the solicitation process to seek entities 
(Consultant), interested in providing services related to management of the Airport Employment
Center, and to provide employment services, training, and workforce development supports at
Seattle-Tacoma Internal Airport (SEA Airport). The solicitation is for five years (2022-2026), plus
two additional optional years (2027, 2028). 
The solicitation process was initiated by the Port's Central Procurement Office (CPO) in
coordination with the workforce development team in the Office of Equity Diversity and Inclusion
(OEDI). The solicitation provided bidders with the option to propose an offsite location, as an
alternative. All bidders submitted proposals that included providing the majority of services
related to employment and training at SEA Airport, as it is currently done by the incumbent, Port
Jobs. 
JUSTIFICATION 
The provision of employment services for job seekers and the engagement with SEA Airport
employers requires a physical space, including a training facility. For the Consultant to provide
employment and training services from SEA Airport it must enter into a space lease with the Port, 
which will be managed by staff from Aviation Properties. The lease document contains all the
relevant provisions to operate as a tenant at SEA Airport. 
Diversity in Contracting 
N/A 

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. _8f___                               Page 2 of 3 
Meeting Date: November 16, 2021 

DETAILS 
The Port's investments in workforce development are based on principles of equity, diversity and
inclusion, and investment outcomes are measured in accordance with the Policy Directive
approved by the Port Commission. To accomplish these goals the Consultant will support SEA
Airport employers in finding qualified workers, will provide employment and training services to
job seekers, incumbent workers, and will support the Aviation Career Pathways program 
managed by the workforce development team. These services will be provided from the office
space and training space leased at SEA Airport, and in collaboration with community-based
organizations and training institutions, as appropriate. 
Scope of Work 
N/A 
Schedule 
The lease will enter into effect on approximately January 1, 2022 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Leasing a location at SEA Airport is part of the solicitation. 
Alternative 1  Not include the lease as part of the services contract with the selected Consultant. 
Cost Implications: The Port will not receive rent for the space.
Pros: 
(1)   The SEA space becomes available for other uses. 
Cons: 
(1)   Provision of services to employers and job seekers will become very difficult to
accomplish without a physical location at SEA.
This is not the recommended alternative. 
Alternative 2  Include the lease as part of the services contract with the selected Consultant. 
Cost Implications: The Port earns rent revenue from the Consultant. 
Pros: 
(1)   SEA employers and jobseekers will have access to a central location at SEA. 
Cons: 
(1)   The space is not readily available for other uses. 
This is the recommended alternative. 

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

COMMISSION AGENDA  Action Item No. _8f___                               Page 3 of 3 
Meeting Date: November 16, 2021 
FINANCIAL IMPLICATIONS 
Future Revenues 
The total expected rent revenues will be approximately $3.4 million. Base rent revenue to the
Port for the five-year base contract (2022-2026) will be approximately $2.4 million assuming an
annual CPI at the high end of the scale. The base rent for the additional two-option years, if
exercised (2027-2028) would be approximately $1.0 million, also assuming a high end of the CPI
scale. The actual rent escalation will be determined on an annual basis based on the published
CPI index. 
ATTACHMENTS TO THIS REQUEST 
(1)   Lease agreement 
(2)   Previous Commission Authorization Memo 
(3)   Presentation slides 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
May 5, 2021  The Commission approved the solicitation SEA Employment Center services 
None 











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

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