Item Number:      10c_order 
Meeting Date:   December 8, 2020 
1 
2                                                    ORDER 2020-21: 
3                                 AN ORDER OF THE PORT OF SEATTLE COMMISSION 
4 
5                           to authorize additional adjustments to agreements with 
6                           tenants and concessionaires impacted by the COVID-19
7                           pandemic. 
8 
9                                                         PROPOSED 
10                                               DECEMBER 8, 2020 
11 
12                                                 INTRODUCTION 
13 
14    The COVID-19 global pandemic is an unprecedented public health emergency that has drastically
15    impacted the economy and threatened the viability of many businesses. It has affected the Port
16    as a public entity and its tenants and concessionaires, which are integral to ensuring the financial
17    success of the Port and supporting the ability of the Port to provide essential aviation, maritime
18    and related facilities and to promote economic development for the region. A sustainable base
19    of tenants and concessionaires is essential to generate and insure a continued in-flow of revenues 
20    for the Port. Tenants and concessionaires also support the Seattle-Tacoma International Airport
21    (SEA) and other Port properties in fulfilling the Port's goal to provide a customer experience that
22    is essential to attract travelers, tourists and other customers to the region. Therefore, it is in the
23    best interest of the Port and the financial sustainability of its operations for the Executive Director 
24    to consider, and where appropriate, provide short-term adjustments to the agreements of
25    certain tenants and concessionaires. 
26 
27                                              TEXT OF THE ORDER 
28 
29    The Port of Seattle Commission hereby provides the following direction to Port Leadership: 
30 
31        1)  The Commission authorizes the Executive Director to continue to make short-term
32            adjustments to agreements for tenants and concessionaires that are consistent with the
33            Commission's April 1, 2020, direction on the provision of relief measures. 
34        2)  In carrying out this authority, the Executive Director will consider the financial and
35            business interests of the Port and the impacts of the COVID-19 pandemic and related
36            public health measures on the economic conditions facing the Port and its tenants and
37            concessionaires. The Executive Director may continue to use the tools employed to-date,
38            including without limitation the deferral of rent and other charges, under terms that are
39            commercially reasonable and beneficial to the Port. 
40        3)  In carrying out this authority, the Executive Director will continue to keep the Commission
41            apprised of the types of adjustments that are being implemented.
42 


Order 2020-21  Port Tenants Relief                                                                    Page 1 of 2

43 
44                                      STATEMENT IN SUPPORT OF THE ORDER 
45 
46    At the outset of the drastic impacts of COVID-19 the Commission on April 1, 2020, through
47    Motion 2020-07 and Action Item 7b, authorized the Executive Director to implement short-term
48    relief to Port tenants and concessionaires and recognized that such relief may change as
49    circumstances warrant. Through the course of the year the Executive Director has approved relief
50    based on the evolving economic conditions and impacts on tenants and concessionaires.  On
51    April 24, May 12, and May 24, 2020, the Executive Director informed the Commission of
52    additional measures that would be taken to provide relief to tenants and concessionaires.  On
53    June 9, 2020, through Motion 2020-13, the Commission also approved a motion authorizing
54    Airport Dining and Retail leases to be adjusted to temporarily suspend the minimum annual
55    guarantee and to extend those leases by three years.
56 
57    We are now experiencing another surge in COVID-19 infections, which caused Governor Inslee 
58    on November 15, 2020, to impose significant restrictions on retail and restaurant operations,
59    including limiting the occupancy of retail establishments to twenty-five percent of capacity and
60    limiting restaurants to providing food to-go. While the restrictions have been imposed through
61    December 14, 2020, it is likely the limitations will be extended as we continue to see increasing
62    infection rates. These restrictions are having a particularly significant impact on food, beverage 
63    and retail tenants at SEA, which have again had to sharply curtail operations. Other Port tenants
64    may be similarly impacted. Moreover, the economic impacts of COVID-19 will likely continue at
65    least until a vaccine is widely available. 
66 
67    In light of the continuing impacts of COVID-19, there may be a need for additional adjustments
68    to agreement terms that advance and preserve the Port's financial and business interests. 
69    Through such actions, the Port will take necessary steps to ensure its on-going financial stability 
70    and fulfill being financially accountable to the public.  The actions will serve to support the
71    continued viability of affected businesses, which are integral to the Port's business success, so
72    that they remain as a significant revenue source for the Port by providing continued services as
73    restrictions are lifted and the economy recovers. Taking such actions substantially reduces the
74    risk of financial harm to the Port resulting from losing a large number of tenants that would be
75    difficult and expensive to replace, and which would be an avoidable cost and revenue loss for the
76    Port.
77 
78 




Order 2020-21  Port Tenants Relief                                                                    Page 2 of 2