Item No. 8f_supp
Meeting Date April 27, 2021
Concourse A Building Expansion for Lounges
To be constructed by
Delta Air Lines

Project Need and Drivers
Lack of available space to accommodate a shift of lounge demand from
South Satellite to Concourse A, for both Delta and the Port's shared use
lounge
Delta requested to design and construct a new facility using the Port's
Tenant Reimbursement Agreement (TRA) policy
Project is linked to both the opening of the International Arrival Facility
and Airline Realignment
Delta has requested approx. 25,000 square feet of lounge space
Port's lounge demand is estimated to be ~12,000 square feet (have 4,850 square
feet currently, with room to expand by an additional 1,500 square feet within
existing building footprint)
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Proposed Project Scope
This approximately 47,000 SF expansion includes:
-  24,500 SF for a new Delta passenger lounge, including 2,300 SF of shell space for
future expansion
-  7,600 SF of shell space for a future expansion of the neighboring Port of Seattle
common-use lounge (of which only approximately 6,000 will be used)
-  7,200 SF of vertical circulation, including stairs, elevators, mechanical space
-  7,600 SF of support areas for mechanical, electrical, plumbing and fire protection
systems
The project also includes 1,200 SF of reconfigured existing space on the
concourse level to accommodate a new lounge entrance and associated
revisions to the adjoining restroom and Airport Dining and Retail space
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Proposed Project Site location



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Proposed Project Rendering



Perspective Looking Towards Northwest
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New Configuration  Concourse Level Interior
Concourse A






Concourse Level Impacts: restroom and retail space
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Project Estimate
Design Phase             $ 9.3 M
Construction Phase       $62.1 M
Total Port Responsibility $71.4 M*

*The estimate was developed by Delta Air Lines and will be updated after
completion of 60% design documents

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Cone of Certainty
W e are here

Risks
Temporary impacts due to construction noise and disruptions
Permanent impacts to adjacent spaces and operations
Further expansion of the building envelope to provide additional
leasable space would cost more and take longer
Existing underground utilities may need to be relocated
Existing utilities may need to be enlarged


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Key Unresolved Scope Issues
The project team is evaluating the impacts of expanding the building
envelope to provide additional leasable space. The project as
currently designed does not maximize the square footage available
on the mezzanine level.
The existing utilities providing ventilation air and hot and chilled
water may not provide the capacity needed for this project and may
need to be enlarged.


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Project Request and Estimated Budget
Requesting Commission authorize $6,180,000 of design funds
Project estimate is $71,400,000 based on Delta's construction estimate
(including Port soft costs)
Current estimate does not include scope or budget for key unresolved
scope issues
Further design is needed to provide better scope, schedule and budget
assurance
Port and Delta will memorialize maximum project cost at 60% design
milestone and will return to Commission to request construction
authorization
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Project Schedule
30% Design Completed                      Q1 2020
Commission Auth for Design                   Q2 2021
60% Design Completed
(TRA Negotiation & Go/No-go decision)          Q2 2021
AAAC Briefing for MII Vote                       Q3 2021
Commission Auth for Construction TRA          Q4 2021
Construction                        Q1 2022 to Q2 2023

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Next Steps
Delta develop scope, schedule and budget impacts to key
outstanding scope issues
Port to make associated decisions on key outstanding scope
Delta progress design to 60%
Negotiation of 60% construction value and TRA
Majority-in-Interest Vote with SEA Airlines
Seek Commission authorization for construction based on 60%
project estimate and split of costs is negotiated and accepted
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