PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA               Item No.      7c 
STAFF BRIEFING 
Date of Meeting    February 24, 2015 
DATE:    February 4, 2015 
TO:     Ted Fick, Chief Executive Officer 
FROM:    James R. Schone, Director, Aviation Business Development 
Deanna Zachrisson, Business Leader, Airport Dining and Retail 
SUBJECT:  Airport Dining and Retail Outreach and Leasing Plans 

SYNOPSIS 
This briefing will provide an overview of a proposed plan for community outreach that
will inform and educate about new leasing opportunities at Seattle-Tacoma International
Airport. This outreach effort will place primary emphasis on public events publicized in
the community by direct communications with target groups, paid advertising, media
relations, social media as well as other means of communication. The public events will
provide small, local, minority-owned and other businesses with opportunities to receive
first-hand information from Port staff and to meet current tenants and ask questions about
doing business at the Airport.  In addition to leasing opportunities, the Port also will
direct outreach to architects, engineers, contractors and suppliers to become part of the
Airport Dining and Retail program through the provision of products and services, and
thereby increase the program's economic benefit to the community. 
This briefing also will provide an overview of the new leasing opportunities that
encompass a broad spectrum of offerings for the traveling public in food service, retail
and passenger services. It also will summarize the criteria used to determine grouping of
locations into packages, as well as an approximate timeline for the competition of each
package. While the leasing plan must remain flexible in order accommodate change and
market feedback, and some locations have yet to be definitively specified, it currently 
contains approximately 44 food service and 34 retail/services locations. In order to
maximize the appeal of these opportunities to a broad variety of businesses, the locations 
(both existing and in development) will be offered in large packages (4 or more units) 
and small packages (2-3 units), as well as single units.
BACKGROUND 
In 2014, the Airport Dining and Retail (ADR) program achieved another year of record
sales and revenue generating a ripple effect of economic benefit in the community. Sales
from dining and retail locations reached $220 million contributing to the livelihood of
hundreds of employees and other suppliers of goods and services. Total program activity
earned the Port $46 million in revenue. The program is the second largest source of non-

Template revised May 30, 2013.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 4, 2015 
Page 2 of 9 
aeronautical revenue, and represents more than 10% of total Airport revenues. The
current year 2015 represents the start of a multi-year redevelopment which is intended to
preserve these revenue streams and ultimately grow the program on multiple metrics of
both financial and community value. 
The Port has reached a key milestone in the redevelopment of the dining and retail
program. With the vast majority of leases set to expire in the 2015-2017 timeframe, Port
staff has been focused on preparing an ADR master plan that will phase expirations and
create new leasing opportunities over several years. The analysis and planning work of
the ADR master plan is now transitioning to the external communication phase about the
new opportunities of the program. Until 2004-2005, opportunities for local companies to
do business in the Airport were limited. Under the previous management model, any
such opportunities were offered by the then-master concessionaire. A notable example is
Starbucks Coffee in the early 1990s. The Airport did not engage in direct leasing with
local business at the time, thus the Port directed Starbucks to the master concessionaire. 
Many local businesses still believe that they must lease via a master/prime concessionaire
in order to gain access to the Airport. Engaging the community about Airport
opportunities is not an easy task, largely due to remaining misperceptions about how the
Port manages the business at the Airport. As a result, the outreach effort must be a robust 
one in order to garner the attention of businesses that may not have considered the
Airport as an available opportunity. 
The Port has a strong track-record of outreach for available leasing opportunities. In
conjunction with the development of the Central Terminal in 2003, under the Airport's
then-third party leasing consultant, Port outreach and advertising drew strong attendance
and resulted in more than 100 proposals for the 10 new available spaces (Exhibit A). In
May 2013, when a limited number of food service, retail and small business kiosks were
available, the Port held an outreach event to promote these opportunities. Nearly 90 
companies attended the event, resulting in numerous proposals, and requests to be placed 
in a database for notification of future outreach events and lease opportunities,
particularly for the more substantial offering of opportunities anticipated in the 2015-
2016 timeframe. The Port's small business kiosks and short-term small business retail
units (Metsker Maps and Sub Pop Records) were leased as a result of this outreach event. 
2015 Review and Stakeholder Committee 
As the Port embarks on its most substantial outreach effort for dining and retail
opportunities in over a decade, the Port is seeking stakeholder input to strengthen the
outreach plan in an evolutionary manner as the leasing activity takes place over the
coming years. At the direction of the Commission and the CEO, and led by the Office of
Social Responsibility (OSR), the Port formed a committee comprised of three community
members for the purpose of idea exchange about the dining and retail redevelopment and
more specifically about the outreach strategies. The objective with this exchange is to

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 4, 2015 
Page 3 of 9 
assure that outreach efforts are truly effective at reaching the target community audiences
with messages that easily resonate. 
The committee met in January and February for three half-day sessions focused on the
program. The idea exchange in these meetings has benefited from the members' 
experience in community relations, business and small business contracting advocacy. 
The group learned about the historical background and current configuration of the dining
and retail program, visited a tenant location to talk with a minority-owned business
owner, discussed the complexities of the redevelopment phasing, and asked questions and 
offered constructive critique. Staff heard the about the importance of the Port
communicating generously and continuously with its community stakeholders, while
recognizing that the power of perception in communicating complex issues will make this
task challenging. Members of the group encouraged the Port to ask experienced small
and minority-owned tenants to tell their own stories of building a business at the Airport 
as a means of helping others evaluate opportunities.. The group also encouraged staff to
explore the means of broadening the benefit of the ADR program to include incentivizing
those doing business at the Airport to hire small and minority service businesses (such as
architects and construction firms), as well as incentivizing the sourcing of products for
sale at the Airport from such businesses. Staff anticipates that the dialogue with the
group will continue as the leasing effort takes shape. 
Outreach Plan Overview 
As part of the proposed outreach plan, the Port initially plans to conduct at least four
local outreach events in 2015. At these events, Port staff will educate about the business
environment at the Airport and solicit interest for the near-term opportunities, as well as 
those anticipated in 2016-2017. Providing information in advance of these opportunities
will allow businesses ample time to research and consider proposals. The events are
planned to be held in April, May, September and October at the Airport and in various
locations in the community. Staff will solicit stakeholder input regarding the best venues
for such community events. A new component for the 2015 outreach events is a "Doing
Business at Sea-Tac" video that will provide a glimpse of 'behind the scenes' operations
and tenant testimonials about doing business in the Airport. Leasing materials and
contact information for Port and consultant staff are already prepared as part of the 2013
outreach. Opportunities for one-on-one consultation with staff or consultant staff will be
available at every event and encouraged throughout the overall process. 
The focus is to present a balanced description of the complexities associated with doing
business in an airport environment. While the volumes of potential customers are
unmatched by any street-side location, there are significant challenges and risks that are
unique to an airport. For example, airlines may leave the market, go out of business,
merge or lose market share which will impact passenger traffic. Airports are not immune
to cyclical swings in the economy and a dining or tenant will experience good times and
bad over the course of a lease term. The investment required for airport locations


COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 4, 2015 
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typically are much higher than for street locations, both due to the additional expenses of
construction (e.g. night shifts, complicated logistics and security requirements) and more
stringent code requirements for safe operations in an airport. 
The success of these events will depend greatly on the promotion and community
outreach efforts to encourage attendance. Current tenants will receive information in
conjunction with regular monthly management meetings. In partnership with the
program's public involvement consultant firm, PRR, and the Office of Social
Responsibility, the Port will use paid advertising, participation at community events,
email and written communications to existing database lists of interested individuals
and/or groups, media relations and social media promotion to drive participation. The
Airport Dining and Retail program staff manages a database of nearly 300 interested
businesses that will receive notifications. Particular focus will be placed on organizations
working with communities of color, minority-owned business, chambers of commerce, 
social justice organizations and economic development councils. 

Proposed Outreach Plan Summary 
Hosts:        Airport Dining and Retail and the Office of Social Responsibility 
Support:     PRR (public involvement firm), AirProjects (leasing consultant) 
Objective:      Attract new local, small and women and minority-owned and
disadvantaged businesses to the dining and retail mix at Sea-Tac
Airport 
Events:       At least four 90 minute sessions 
Locations:     Airport as well as satellite events in Seattle, Tacoma, Eastside. (with
stakeholder input regarding locations) 
Materials:      "Doing Business at Sea-Tac" leasing packet, PowerPoint and video
presentation, contact information 
Promotion:    Paid advertising in daily, weekly, community newspapers and
publications. Paid sponsorships in event programs. Direct outreach to
community organizations, speaker opportunities. Email and electronic
news bulletins and social media messages 
Website:      Leasing website (launched in 2013), www.lease.seatacshops.com with
unit specific information and application forms 
Other Outreach 
Outreach to the local business community for the purpose of promoting leasing is a key
activity, but there will be other ways to participate in the Airport Dining and Retail
program.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 4, 2015 
Page 5 of 9 
Contractors/Architects/Engineering Community 
In past experience, the ability for in-coming food and retail operators to connect with a
pool of designers and contractors interested and available to provide services for design
and construction of new locations has been too limited. The result is an undersupply
relative to demand and thus a problem for operators. The Airport Dining and Retail staff,
in collaboration with Aviation Project Management and the Central Procurement Office,
has explored ways to increase the pool of such vendors. While the Port will not intervene 
in a business relationship by recommending design or construction entities to tenants,
staff is developing a means to familiarize more designers and contractors with doing
business for tenants at the Airport, and at the same time create a directory of firms that
have demonstrated interest. Staff is collaborating with Information and Communication
Technology (ICT) in developing an online curriculum for contractors, architects,
engineers and other providers of services to in-coming food service and retail operators. 
Companies that complete the curriculum will be the basis of creating a list for in-coming
operators seeking such services. This will allow new businesses to know about available
service providers that have a basic understanding of Airport requirements, and can
investigate alternatives. This program , and the outreach associated with it, will be
developed fully by the end of 2015. As with the overall leasing outreach plan, this effort
will also be developed in partnership with OSR. 
Suppliers and Vendors 
Food service and retail operators at the Airport procure millions of dollars in merchandise
every year for sale to passengers. A portion of this procurement comes from local, small
and minority-owned businesses. Airport Dining and Retail staff has initiated a project
with its largest operators to identify the suppliers and the scope of this procurement.
From this baseline, staff will work with its operators, OSR and the Washington State
Office of Women and Minority Owned Business Enterprises (OMWBE) to increase the
scope of this type of procurement, including the possibility of incentivizing such
procurement as part of the competitive process for Airport opportunities. 
In particular, staff will work with tenant buyers to encourage sourcing from minority
businesses, and also those who may be eligible for certification as an Airport Concessions
Disadvantaged Business Enterprises (ACDBE). While ACDBE certification typically is
associated with owners/partners in food service and retail locations, ACDBE
participation also can be achieved by way of purchases from ACDBE certified suppliers.
This is a form of ACDBE participation which can benefit many more businesses and
individuals in the community as the opportunities are greater in number. The Airport
would benefit from this additional ACDBE participation toward the achievement of its
goal. Targeted outreach to current and potential vendors will be required to increase
participation. This program and a plan for needed outreach will be fully developed by the
end of 2015.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 4, 2015 
Page 6 of 9 
Leasing Plan Overview 
The Airport Dining and Retail program currently is comprised of 92 different locations
(not including kiosk locations). The largest number of units are under lease agreement
with prime operators due to expire between December 31, 2016 and May 31, 2017. In
December 2014, the Commission approved the foundation of a multi-year phasing of the
program transition by modifying the lease agreements of three prime operators in the
Airport. HMSHost will operate 10 food service locations until 2023 (of which seven (7) 
are Starbucks Coffee locations) and Hudson will operate convenience and specialty retail
in eight (8) locations until 2022 and nine (9) locations until 2024. The Airport's duty free
business is under lease agreement until 2020.
With these building blocks in place, the Airport staff can construct a leasing plan for
other existing and yet-to-be-developed units. The leasing plan creates "packages" of
either multiple units or single unit locations for presentation to the marketplace. The
timing for the release of packages for competition will begin in 2015 and likely continue
through 2018 as new facilities come into service. As preliminarily proposed, there are 17
food service packages and 22 retail and/or personal services packages in the plan. As the
leasing effort unfolds, staff expects that modifications will be necessary in a fluid
business and Airport environment. 
Food Service: The 17 food service packages contain as many as seven units and few as
two locations, in addition to single unit opportunities. The restaurant types are as varied
as full-service dining, casual dining, quick serve, coffee and/or snacks, gourmet markets,
and quick serve (fast food) offerings. The food service packages also include units in the
new North Satellite. (Exhibit B) 
Retail/Passenger Services: The 22 retail packages also include services such as
manicure, massage, hair salon and shoeshine because all of these services include a
significant retail product component. Retail packaging differs significantly from that for
food service due to the fact that most retailers (particularly local retailers) are not
affiliated with large traditional airport operators. As a result, retail locations are not as
conducive to grouping in multiple unit packages. Rather, all of the packages in the retail
category are three units or fewer in order to attract brand name and local retailers.
(Exhibit C) 
Packaging Criteria 
The overall strategy with the plan is to create a program with a sustainable schedule of
renewal moving into the future. Ideally, the program would experience renewal of
approximately 10-15 units per year along with additional growth to meet demand. New
lease term lengths will vary by type of operation and investment requirement, in
negotiation with each tenant, typically between 5-10 years.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 4, 2015 
Page 7 of 9 
For the work of packaging units appropriately airport-wide, staff has endeavored to apply
a number of criteria in considering each current and planned location, including future
units in the new North Satellite. Many of the criteria listed below constitute best
practices in airport dining and retail programs, while others are the result specific
Aviation Division and Commission goals for the program. Criteria include: 
Total package sales potential 
Locations that have performed well in the past, or are estimated to be strong locations
based on anticipated passenger volumes are packaged with units that have an anticipated
lower sales potential. In multiple unit packages, high volume locations are expected to
offset lower volume locations. Packages are estimated to achieve overall profitability. 
Balance large operators and small business participation 
Large national/international operators will propose on large packages with investment
requirements out of reach of small and minority-owned businesses. Large businesses
also will propose on small packages and individual units in an effort to increase the scale
of their operation. The small packages and individual units cannot be 'set aside' for
competition for small business and/or minority-owned business only. Small packages
offered must be numerous enough to achieve 40% small, local and/or minority-owned
business participation as desired by the Commission, anticipating that some large
operators will win small packages. 
Balance of geographic locations 
This criterion is closely tied to sales potential for a package, but with the related objective
of providing a mitigation of risk for operators by placing locations throughout the
terminal. For small operators, it is desirable to place 2-3 locations in different parts of the
Airport to mitigate the risk of carrier-related changes (e.g. mergers, bankruptcies, etc.). 
Lease agreements will continue to contain provisions for truly exceptional circumstances. 
Investment Requirements 
This criterion is related to the mix of small and larger operators. Large packages with
large investment requirements eliminate competition from smaller operators. Packages
intended to be within reach of small businesses should have an overall investment
requirement less than $3 million, and preferably with a phased schedule of investment
(see below). 
Phasing of Build-Outs 
With particular consideration of smaller operators, packages are designed to avoid
multiple simultaneous build-outs and commitment of capital resources without the cash
flow from an operation. Units in packages should come online in somewhat staggered
succession. Lease commencement and/or termination dates, or possibly rent structures
will be adjusted to accommodate in each instance by negotiation with the tenant. Phasing
of build-outs also helps mitigate disruption of customer service in the terminal and avoids 
overheating of the market for architects and builders which drives up costs for business.

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 4, 2015 
Page 8 of 9 
Optimal Mix 
In some instances, a specific type of concept is desired for a location in order to achieve
the optimal mix of offerings to meet passenger demand. As a result, a unit may be
offered as a single unit opportunity in order to increase the likelihood that the desired
type of concept will compete for the opportunity. This is particularly true for retail
concepts where alliances with primes are less common. 
Next Steps 
The immediate next steps are to share the preliminary packaging plan with current
Airport tenants. Current tenants and other stakeholders are expected and encouraged to
provide input and insights from a business person's perspective to this plan. Staff also
will prepare to launch the first outreach efforts with an open approach to refining the
efforts as the leasing effort continues. Port staff in ADR and OSR will work with the
public involvement firm to produce outreach materials, engage in one-on-one community
outreach, plan advertising and develop the "Doing Business at Sea-Tac" video and other
leasing materials. The leasing website will be prepared for the inclusion of the specific
information about the opportunities which would "go live" in advance of the first
outreach event. The first leasing opportunities in 2015 will be for retail/personal services
and specialty retail. The first food service package would be released in the third quarter
of 2015. 
Concurrently, staff continues to work to realize the Commission's policy guidance in its
November 25, 2014 motion regarding quality jobs, employment and service continuity.
Staff has created an initial scope of work for a third-party vendor to manage an
employment continuity pool during the transition, and the process of procurement has
been initiated. New draft solicitation documents for use in future Request for Proposal
(RFP) and Competitive Evaluation Processes are currently undergoing Legal review. 
ATTACHMENTS TO THIS BRIEFING 
Exhibit A: Commission Meeting Minutes, April 2003 
Exhibit B: DRAFT Event and Outreach Overview 
Exhibit C: Food Service Packaging Plan 
Exhibit D: Retail/Service Packaging Plan 
Exhibit E: PowerPoint Presentation 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
December 9, 2014  Phasing Proposal for Airport Management Services LLC
(Hudson Group) Retail Locations 
December 9, 2014  Phasing Proposal for HMSHost Leased Food Service Locations 
December 9, 2014  Amendment to Lease and Concession Agreement for Anton
Airfoods dba Anthony's Restaurant

COMMISSION AGENDA 
Ted Fick, Chief Executive Officer 
February 4, 2015 
Page 9 of 9 
November 25, 2014  Commission Motion regarding quality jobs, employment and
service continuity 
September 30, 2014  (Staff Briefing) Drivers for Phasing Decisions. 
May 27, 2014  Briefing about Airport Dining and Retail Master Plan 
September 11, 2012  (Briefing) Airport Concessions Master Plan Update 
March 27, 2012  Briefing about Interim Concessions Leasing 
February 14, 2012  Commission Motion for the Airport Concessions Program 
December 13, 2011  Program Principles and Practices (Stakeholder Process)
briefing