PORT OF SEATTLE 
MEMORANDUM 
COMMISSION AGENDA             Item No.      5c 
ACTION ITEM            Date of Meeting   June 5, 2012 

DATE:    May 25, 2012 
TO:     Tay Yoshitani, Chief Executive Officer 
FROM:    James R. Schone, Director, Aviation Business Development 
Deanna Zachrisson, Manager, Aviation Concessions Business 
SUBJECT:  Request to execute a 2-year lease option for butter LONDON Inc. in Concourse 
C at Seattle-Tacoma International Airport 

ACTION REQUESTED:
Request Commission authorization for the Chief Executive Officer to execute one two-year lease
option as provided for in the lease and concession agreement with butter LONDON Inc. The
total lease term, if the option is exercised, is seven years. 
SYNOPSIS:
butter LONDON provides manicure and pedicure services to the traveling public along with
retail sales of their own exclusive line of environmentally friendly nail lacquers and other related
products. A five-year lease agreement between the Port and butter LONDON, Inc. was executed
in 2007. This lease agreement included the option for two additional two-year lease term
extensions. Staff recommends exercising one two-year option based on the solid, consistent
performance of this tenant in meeting the needs of the traveling public. The total lease term with
the option would be seven years. During the next two years, staff will work with its third party
concessions planning and leasing support team to recommend whether to exercise the second
two-year option or suggest another course of action for this business opportunity when the butter 
LONDON lease expires. 
BACKGROUND: 
butter LONDON Inc. currently operates one 908 square foot storefront location in Concourse C
(Exhibit A: Concourse C location) across from the Horizon departure gates. When butter 
LONDON began providing manicure/pedicure service to Sea-Tac travelers in 2005, the concept
operated out of a small kiosk location on Concourse B. The response to the availability of this
personal service was tremendous and demonstrated an obvious steady demand for 
manicures/pedicures in the Airport environment.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 25, 2012 
Page 2 of 5 

butter LONDON was founded by Seattle resident Sasha Muir who developed the concept with
the British flair of her native United Kingdom. The firm is a small company headquartered in
Seattle, and was initially funded by multiple local investors.
At the Airport location, the company currently employs 11 full-time and 5 part-time licensed nail
technicians. The company pays payroll taxes and offers medical, dental and other benefits. The
company has many tenured employees who have been with butter LONDON since it started in
2005. The butter LONDON administrative office and distribution center located in South Seattle
also employs 36 full-time and 2 part-time employees. These employees support both the Airport
operation and their growing wholesale business. 
butter LONDON is extremely popular with travelers, particularly travelers on short-haul Horizon
departures in its immediate vicinity. butter LONDON is one of few businesses in the Airport
that realized an increase in sales during the 2008-2009 recession, and achieved its highest sales
ever in 2011. In fact, butter LONDON broke the $1 million mark in sales in 2011, which was
approximately twice the sales estimated in their original pro forma for their fifth lease year. 
Sales year-to-date are up more than 15% over 2011. Recently, butter LONDON added soughtafter
eyebrow waxing and shaping to their services, and a new line of matching lip colours to
their product line. 
During the two years that butter LONDON operated from a small kiosk, the company already
established a local following with a surprisingly broad appeal. Approximately 20% of butter 
LONDON's clientele are male travelers. In 2007, as the outcome of a request for proposals
process, butter LONDON was chosen to operate a storefront manicure/pedicure location over the
only other airport manicure provider headquartered in Miami, Florida. This other provider has
eight locations in the U.S., although none are located west of Dallas-Fort Worth International
Airport. butter LONDON was deemed best able to provide the Port with a reasonable financial
return while providing both local business opportunity and a quality service experience for the
traveling public. 
Manicure/pedicure services in an airport environment are not comparable to a typical street-side
service. Utilities and infrastructure at the Airport are very expensive and nearly cost prohibitive
for the installation of typical water-supplied manicure/pedicure stations. Also the volumes of
customers present sanitary issues with the traditional nail spa equipment. Nail lacquer and other
vapors are not acceptable for the comfort of all travelers. And notably, most customers have 20
minutes or less for their service. In response to these particular requirements, butter LONDON
developed its signature line of environmentally-friendly, non-toxic "3 Free" nail lacquers (no
formaldehyde, no toluene, no DBP) and proprietary waterless nail services. butter LONDON
products provide a sanitary, high quality treatment without the need for soaking in water. Their
nail lacquers dry in nearly half the time of other nail polishes. 
A significant part of butter LONDON's success at Sea-Tac is the result of the company's success
in selling their products through other retailers. butter LONDON's products now are sold in

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 25, 2012 
Page 3 of 5 

Nordstrom and Macy's stores nationwide. Numerous other local retailers also sell butter 
LONDON's products. Travelers who develop a loyalty to butter LONDON's nail lacquers take
advantage of the opportunity to receive service in its salon at the Airport. 
With the execution of the two-year lease option, butter LONDON would be under a lease and
concession agreement until the middle of 2014. For this reason, it is easily accommodated in the
current master planning work for the future of the concessions program. Although its expiration
will be close to the time that the majority of other concessions leases will expire, it is one of only
two storefront passenger service concessions. 
The other service concession, Massage Bar, is located adjacent to butter LONDON. butter 
LONDON derives significant synergies from this proximity due to their complementary services. 
butter LONDON also will be near to the future Beecher's Handmade Cheese. For the traveler
who wants to purchase a coffee or food before getting a manicure or pedicure service, this
addition will be a welcome amenity. For the Airport, these three locations will become a 'street'
of desired local businesses at the head of Concourse C. 
FINANCIAL IMPLICATIONS: 
Financial Analysis Summary: 
The financial benefit to the Port with regard to sales performance and percentage rent is
commensurate with the U.S. airport market, i.e., other airports are seeing similar levels of sales
performance and receiving similar percentage rents. The summary below outlines most recent
annual sales performance and financial return from the operation. 

Terms          butter LONDON 
Store Open         June 29, 2007 
Initial Investment     $323,000 
from Lessee 
Term Length       5 years with two 2-year options at the discretion of the Port 
2011 Sales         $1,042,241 (+16% over 2010) 
% Rent           Tiered rent structure: 
13% on gross sales less than $300,001.00 per year 
13% on gross sales less than $400.001.00 per year 
14% on gross sales less than $500.000.00 per year 
14.5% on gross sales in excess of $500,000 per year 
Average rent: 14% 
Minimum Annual   The tenant guarantees 85% of the previous year's rent payments to
Guarantee (MAG)    the Port, payable monthly. 
Marketing         0.5% of gross sales to joint concessions marketing fund not to exceed
$24,000 annually.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 25, 2012 
Page 4 of 5 

Storage           94 square feet of storage at $7.75 per square foot 
2011 Port Revenue    $135,500 
STRATEGIC OBJECTIVES: 
The approval of this lease option meets the following Port strategic objectives: 
Maximizes financial performance by meeting customer demand for manicure/pedicure
services and related retail products. 
Provides compelling customer and community value by retaining a locally-owned and
operated airport brand concept at the Airport. 
Supports a business opportunity for a local small business operator that has proven to be
successful in the airport environment.
Continues to provide opportunities for new employees and suppliers to this business. 
The tenancy of butter LONDON is consistent the Port's goal of creating opportunities for
local small businesses. 
butter LONDON Inc. supports 16 full and part-time jobs at the Airport, and another 38 full
and part time jobs at the company's Seattle headquarters office and distribution center. In
addition, the Airport location promotes butter LONDON's line of mainstream retail products
and indirectly supports more local jobs. 
ENVIRONMENTAL SUSTAINABILITY: 
The interior of butter LONDON's Concourse C unit was designed and built as 'green build' to
the greatest degree possible. It is unique with its exposed ceiling infrastructure and chandelier
lighting. The unit is in excellent condition after 5 years and there is an environmental
lifecycle benefit with a continued lifespan for this investment. 
BUSINESS PLAN OBJECTIVES: 
This concession will contribute to achievement of the Airport's business plan objective of
"maximizing non-aeronautical net operating income" by generating estimated non-aeronautical
revenues of approximately $300,000 for the two-year option period. 
Per Federal Aviation Administration rules, non-aeronautical revenues must be retained for use at
the Airport. These revenues are critical to the daily operations, on-going maintenance, and
future development of the Airport, as well as to the economic vitality of the Puget Sound region.

COMMISSION AGENDA 
Tay Yoshitani, Chief Executive Officer 
May 25, 2012 
Page 5 of 5 

ALTERNATIVES CONSIDERED AND THEIR IMPLICATIONS: 
Do not execute the 2-year lease option for butter LONDON and close the unit at the end of
its lease. It is unclear what other potential use would better serve the traveling public,
therefore an analysis would be conducted to determine another use. This is not the
recommended alternative. 
Place this tenant's lease and concession agreement in month-to-month status until the third-
party leasing agent can determine if another competitor to butter LONDON would be a better
candidate for this passenger service. This is not the recommended alternative. 
Execute the 2-year lease option for butter LONDON to remain in business until mid-2014. 
During the next two years, staff will analyze the future of this business concept at the Airport
and make a recommendation to be included in the future Concessions Master Plan. This is
the recommended alternative. 
OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: 
Exhibit A: Concourse C location. 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: 
None.