ITEM NO:        _6g_Supp 
MEETING DATE February 27, 2018
Airport Dining & Retail 
Amendment to Lease Group 4 Authorization 
Authorization Request 
February 27, 2018

Agenda 
Rationale for Amending the Lease Group 4 Authorization 
Amended Lease Group 4 Opportunities 
Schedule 


Providing new dining and retail opportunities at the Airport 
2

Rationale for amending the 
Lease Group 4 Authorization 
Two leasing opportunities in LG 3 were suspended due to the receipt of bids that
significantly exceeded the budget for enabling infrastructure projects. 
The Port reconfigured these infrastructure projects and subsequently received more
reasonable bids for this work. Construction is now underway. 
In order to have new dining capacity ready when the Central Terminal Infrastructure
Upgrade Project is completed, the solicitation process for these leasing opportunities needs
to be restarted. 
Since the date when these opportunities were authorized for competitive solicitation, the
Commission made several significant changes to the minimum qualifications and scoring
criteria that were used for LG 4. 
Staff recommends amending the LG 4 authorization to allow these two opportunities to be
competed with the minimum qualifications and scoring criteria approved by Commission
for LG 4. 
Recommend competing these opportunities under LG 4 rules 
3

Amended Lease Group 4 Opportunities 
F-9                         F-8 




Mezzanine Level Not Shown 
Both opportunities are in the Central Terminal 
4

Schedule for these 2 Opportunities 
Projected Date                                  Action 
February 27, 2018                              Request Commission to amend Lease Group 4 authorization 
March 2, 2018                                 Advertise opportunities (via leasing website and through various local and
national media) 
March 21, 2018                                Tours and training sessions for interested businesses 
March 2 through May 31, 2018                90 days for proposal preparation 
May 31, 2018                               Responses due 
July/August 2018                               Port teams complete their evaluations 
August/September 2018                     Notification to preferred respondents 
Update Commission on these Lease Group 4 results 
September/October 2018                    Lease negotiations and executions 

These opportunities are ready for the marketplace 
5

Proposed Amended Lease Group 4 Schedule vs. 
Central Terminal Enhancement Project Schedule 
2018                                                     2019                               2020 

Q1           Q2             Q3             Q4           Q1           Q2           Q3           Q4           Q1 
Solicitation and Award Process 
Central Terminal Infrastructure Upgrade Project  Phase 1 

Design and Construction F-9 
Central Terminal Infrastructure Upgrade Project   Phase 2
Design and Construction F-8 
Authorization now is important to ensure new dining capacity is ready 
6

APPENDIX

Commission Guidance for the 
ADR Master Plan 
Encourage broad business participation. 
Use flexible competitive leasing processes to accommodate all types of
business. 
Create new opportunities for small, disadvantaged and local businesses. 
Maximize employment continuity for qualified employees. 
Continue 'street pricing' of products and services. 
Improve efficiency and affordability in the unit build out process. 
Establish job quality expectations in competitive processes. 
Strengthen the local Pacific Northwest sense of place. 
Support a mix of businesses that create quality jobs 
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Commission Goals for the
ADR Master Plan 
Grow sales per enplanement by at least 40 percent. 
Reach and remain within the top 10 North American airports as ranked
by sales per enplanement. 
Grow gross revenues to the Port by 50 percent. 
Grow employment by 40 percent. 
Grow the share of sales generated by small, disadvantaged, and/or
local businesses to 40 percent. 
Create an aspirational objective of increasing ACDBE gross sales to 25
percent of total sales. 
ADR opportunities grow with the Airport 
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Solicitation Process Overview 
Competitive Evaluation Process (CEP) 
Simplified process for 1-3 unit opportunities 
Tailored to capabilities of small business 
Request for Proposal (RFP) 
Used for packages with 4 or more units or a single unit requiring a large
investment 
Tailored to capabilities of large companies but encouraging small business
participation 
Requires companies to submit greater detail and demonstrate greater financial
capability 
Competitive solicitation process reflects Commission guidance 
10

Changes Incorporated in the Lease Group 4
Competitive Solicitation Process 
CEP and RFP 
Proposition 1 Compliance: Firms who are not fully compliant with Prop 1 back wages and
benefits were to be disqualified from participation. 
Scoring the Quality Jobs Criterion: A greater emphasis was placed on proposed wages and
medical/retirement benefits in the scoring of this criterion. A quantitative-formula-based
methodology was utilized for evaluating wages and medical/retirement benefits. 
Scoring the Small Business Participation Criterion: The scoring system was revised as
follows: 
Small businesses that propose directly would still automatically receive 10 points.
Large businesses that propose a joint venture with a small business and that
agreement meets the FAA guidelines for joint ventures and includes a minimum of
20% share of capital investment would automatically receive 5 points.
Competitive solicitation process reflects Commission guidance 
11

Changes Incorporated in the Lease Group 4
Competitive Solicitation Process 
CEP and RFP (cont'd) 
Pacific Northwest Sense of Place: 10 points of the Concept Development criterion (25
points total) was allocated to the evaluation of the concept as it pertains to creating a
Pacific Northwest Sense of Place within the Airport. 
Labor Peace Agreements: A labor peace requirement was implemented as follows: 
All non-exempt respondents must submit a labor peace agreement with their
proposal. 
The Port would have no role in reviewing or establishing the terms of these
agreements. 
Small businesses which have 35 or fewer badged airport employees would be
exempted. 
Competitive solicitation process reflects Commission guidance 
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Established Evaluation Criteria 
Company Experience, Financial Capability:              20 points  (13%) 
Concept Development:                               25 points (17%) 
Unit Design, Materials and Capital Investment:          25 points  (17%) 
Financial Projections and Rent Proposal:                 20 points  (13%) 
Management, Staffing and Environmental:             20 points (13%) 
Job Quality, Employment and Service Continuity:        20 points  (13%) 
Small Business Participation:                            20 points  (13%) 
TOTAL POINTS                                    150 points (100%) 
Evaluation criteria support Commission priorities 
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New opportunities ready for the marketplace 
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New opportunities ready for the marketplace 
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