COMMISSION 
AGENDA MEMORANDUM                        Item No.          8d 
ACTION ITEM                            Date of Meeting     November 16, 2021 

DATE:     October 29, 2021 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Dawn L. Hunter, Director, Aviation Commercial Management 
Khalia Moore, Interim Sr. Manager, Airport Dining and Retail 
SUBJECT:  North Satellite Small Business Kiosk Tenant Reimbursement 
Amount of this request:            $500,000 
Total estimated project cost:        $500,000 

ACTION REQUESTED 
Request Commission authorization for Executive Director to execute a tenant reimbursement
agreement for an amount not to exceed $500,000 for the buildout of the small business kiosk in
the North Satellite, at the Seattle-Tacoma International Airport.
EXECUTIVE SUMMARY 
North Satellite (NSAT) Phase 2 building expansion will offer 17 new Airport Dining and Retail
(ADR) spaces. Among the new units are (1) Introductory food and beverage small business kiosk
and (2) Intermediate retail small business kiosks. Introductory kiosk spaces are designed, built, 
and maintained by the Port as small business incubators so that micro and small business can
have the ability to understand how to operate in an airport environment without the substantial
buildout cost incurred. All units were originally scheduled to open August 2021. 
NSAT Phase 1 spaces opened in Q1 2019 and Phase 2 units were awarded in Q4 2019. The original
plan assumed the awarded tenants would begin design review in Q2/Q3 2020 in preparation for
the Phase two opening. In Q1 2020, the COVID 19 pandemic and the rise in US cases, caused a
devastating impact on aviation and the businesses who depend on airline travel for survival. 
JUSTIFICATION 
In March 2020, Governor Inslee provided guidance on COVID related restrictions on restaurants,
retail, and services. This guidance specifically included airport locations resulting in program-wide
closures. Many of the businesses awarded in NSAT Phase 2 are current ADR Tenants and were
greatly impacted by the COVID restrictions and closures. These restrictions have caused a
financial burden on the tenants and their cash flow. In addition to the cash flow issues, many

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 8d                                  Page 2 of 4 
Meeting Date: November 16, 2021 
lending institutions were hesitant or declined to lend money to airport tenants amid uncertainty
regarding the pandemic throughout the aviation industry. 
During the pandemic closures, the base building NSAT project was deemed essential and was
able to capitalize on the decreased passenger enplanements to progress their construction and
advance the completion of the building expansion schedule. To accommodate this accelerated
schedule and to provide an adequate customer experience, ADR proposed two temporary
offerings. The ADR team contacted all NSAT tenants to ask for assistance in providing a new
temporary offering to the NSAT passengers. Fortunately, two airport beverage and food
operators, Concessions International in a Joint Venture (JV) Partnership with Crews, raised their
hand to provide an elevated temporary service to the passengers. Their JV, Concessions
International Crews SEA, LLC (CI Crews SEA), is a Women/Minority Business Enterprise (WMBE)
Prime with an Airport Concessions Disadvantaged Business Enterprise partnership. ADR assessed
the demand of the NSAT based on passenger projections and identified that to assure the needed
coverage in Phase 2, one temporary location would be placed in a future Small Business Food
and Beverage Kiosk space centrally located in the marketplace with the other located on the
Northern end flanked by six (6) gates.
This temporary kiosk once completed by the CI Crews SEA team, is an ideal opportunity to convert
into a longer-term small business kiosk for future small and micro business offerings at the
airport. This reimbursement to CI Crews SEA would be the first step in converting this opportunity
to become part of the ADR Kiosk Program. Once the term of the temporary offering is complete,
the Port would undertake additional upgrades to convert some functionality of the kiosk that
would meet all code and facility design standards as required for longer term facility needs. A
future project will be implemented to complete the upgrade and will be the subject of a future
authorization request. 
The cost of this unit for CI Crews SEA is a little over the amount of $500,000.  Based on Port
processes, construction for a unit like this, would be doubled in both cost and construction
duration. Being mindful of the Port costs and to provide more immediate access to the space at
the end of this short-term contract, ADR is requesting that the Airport reimburse CI Crews SEA,
LLC the costs incurred to construct the unit in the amount of $500,000. 
Diversity in Contracting 
Aviation Commercial Management Team will coordinate with Diversity in Contracting to find
opportunities for additional WMBE businesses. The tenant, their JV partner, and contractor are
all WMBE firms.



Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 8d                                  Page 3 of 4 
Meeting Date: November 16, 2021 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Alternative 1  Do not purchase the kiosk in NSAT 
Cost Implications: None 
Pros: 
(1)   No cost to the Port 
Cons: 
(1)   Port would have to procure a design firm which will push revenue generation out
several years. 
(2)   Historically Port construction cost are higher than a tenant build, and the Port process
will delay the immediate use of the kiosk for another small business tenant. 
(3)   In two (2) years the tenant would demo the kiosk and dispose of the materials which is
not environmentally sound. 
(4)   Delayed revenue generation in the space 
This is not the recommended alternative. 
Alternative 2  Purchase the NSAT Kiosk 
Cost Implications: $500,000 
Pros: 
(1)   Port would not have to take on extra cost of procuring a design firm 
(2)   Port would save money as the Port construction costs are higher 
(3)   Allows the Port to generate money without administrative delays 
Cons: 
(1)   Financial Cost to Port 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                   $417,942         $82,058        $500,000 
AUTHORIZATION 
Previous authorizations                                   $0                0               $0 
Current request for authorization                  $417,942         $82,058        $500,000 
Total authorizations, including this request         $417,942         $82,058        $500,000 
Remaining amount to be authorized                    $0             $0             $0 

Template revised June 27, 2019 (Diversity in Contracting).

COMMISSION AGENDA  Action Item No. 8d                                  Page 4 of 4 
Meeting Date: November 16, 2021 
Annual Budget Status and Source of Funds 
Future Revenues and Expenses (Total cost of ownership) 
Future Revenues 
Currently the kiosk grosses on average $80,000 with an approximate average of $4.5 million per
year. Future tenants will be charged percentage rent between 10% to 12%. Revenue to the Port
will be approximately $500,000 annually.
Future Expenses 
The NSAT Kiosk will be a part of the Small Business Food Incubator program. With this program
AVCM will need to procure third party vendors for deep cleaning, general maintenance, and
equipment replacement as part of a mid-term refurbishment. Staff is estimating approximately
$75,000 annually for quarterly deep cleaning and ongoing general cleaning on all the three (3)
food incubators.
To convert the space from a temporary unit to be used in the Small Business Incubator program
and adhere to Code and Port Standard  the following action items  must happen:  add 
waterproofing membrane to floor, connect plumbing and drains, add water meter, install water
heater, and explore alternate ventilation if necessary. Staff believes this cost could be covered
in the Small Business Incubator Program and will be returning in the future for authorization of
those costs once estimated.
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
None 
ATTACHMENTS 
(1) Presentation slides 







Template revised June 27, 2019 (Diversity in Contracting).