PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.       4j 
ACTION ITEM 
Date of Meeting    September 13, 2016 
DATE:    September 6, 2016 
TO:      Ted Fick, Chief Executive Officer 
FROM:   James R. Schone, Director, Aviation Business Development 
SUBJECT:  Early Termination of FireFly Rent A Car, LLC D/B/A FireFly at Seattle-Tacoma
International Airport 

Net Proceeds to the Port:     $1,850,000 

ACTION REQUESTED 
Request Commission authorization for the Chief Executive Officer to execute an  early
termination agreement, substantially as drafted and attached, in the amount of $1,850,000 with
FireFly Rent A Car LLC D/B/A FireFly at Seattle-Tacoma International Airport. 
SYNOPSIS 
The lessee is requesting early termination of its obligations under their Consolidated Rental Car
Facility (RCF) lease and its companion concession agreement with the Port of Seattle due to a
lack of successful business performance in exchange for a one-time payment of $1,850,000. 
BACKGROUND 
FireFly Rent A Car LLC (a subsidiary of Hertz) started its operation from the Airport's Rental
Car Facility in August 2014 following its successful bid in a bankruptcy auction for a prior
tenant's lease and concession agreement. 
However, FireFly was not successful in generating sufficient revenue to make their Seattle
operation a viable concern.  Prior to the firm's decision to cease operations at the RCF in May
2016, it was paying more than 100% of its gross monthly receipts to the Port to meet its 
obligations under the lease and concession agreements. 
FINANCIAL IMPLICATIONS 
Acceptance of this lease buyout proposal would result in a one-time payment to the Port of
$1,850,000 in exchange for extinguishing Lessee's minimum concession fee rental obligations of
$620,000, and land rent of $147,389, per year through May 31, 2022. 

Template revised May 30, 2013

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 2 of 3 
STRATEGIES AND OBJECTIVES 
This action supports the Airport's strategic goal of maximizing non-aeronautical net operating
income (NOI), as it provides a boost to the current year's income, as well as allows the space in
the RCF that is the subject of these agreements to be more productively utilized by a successor
tenant. 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do not allow tenant to terminate lease early. 
Pros: 
(1)  Holds tenant to their agreed-upon lease obligations. 
(2)  Assuming FireFly doesn't default, or file for bankruptcy, the Port would continue to
receive monthly rent payments. 
Cons: 
(1)  Does not return to productive use the portion of the RCF leased by FireFly. 
(2)  Port would likely need to pursue default proceedings under the Lease. 
(3)  If tenant declares bankruptcy, the Port's damage recovery may be limited to
substantially less than the current offer. Even in the absence of bankruptcy, there is
risk that the Port will recover a lower damages amount than offered by the tenant. 
This is not the recommended alternative. 
Alternative 2  Continue to negotiate with tenant to achieve a higher buyout amount for early
termination of lease. 
Pros: 
(1)  Port staff calculated a potential maximum Rental Deficiency and Future Damages
value of $3.37 million in accordance with applicable lease provisions. 
(2)  Could achieve higher buyout amount than proposed. 
Cons: 
(1)  Does not return to productive use the portion of the Rental Car Facility leased by
FireFly. 
(2)  This may put a negotiated settlement at risk, as tenant has indicated they will not
agree to a higher amount. 
(3)  If tenant declares bankruptcy, the Port's damage recovery may be limited to
substantially less than the current offer. Even in the absence of bankruptcy, there is
risk that the Port will recover a lower damages amount than offered by the tenant. 
This is not the recommended alternative. 


Revised March 28, 2016 

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
September 6, 2016 
Page 3 of 3 
Alternative 3  Accept tenant's offered buyout amount of $1,850,000 and allow the early
termination of their agreements. 
Pros: 
(1)  Lessee has agreed to pay this amount to buyout the remaining term of the lease and
concession agreement. 
(2)  Ensures the Port would receive significant monetary compensation for the early
termination of the lease. 
(3)  Is significantly higher than Port staff's calculation of minimum Rental Deficiency
and Future Damages amount of $470,000. 
(4)  Allows the Port to move forward with finding a new tenant to occupy the vacated
Premises, thus returning them to productive use. 
(5)  Avoids litigating the buyout amount and avoids additional legal fees. 
Cons: 
(1)  Buyout amount  is lower than Port staff's calculation of maximum Rental
Deficiency and Future Damages amount of $3.37 million. 
(2)  Reduces future cash flows from the Rental Car Facility. 
This is the recommended alternative. 
ATTACHMENTS TO THIS REQUEST 
Draft Early Termination Agreement 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 







Revised March 28, 2016