COMMISSION 
AGENDA MEMORANDUM                        Item No.          10d 
ACTION ITEM                            Date of Meeting     December 14, 2021 
DATE:     December 3, 2021 
TO:        Stephen P. Metruck, Executive Director 
FROM:    Jeff Moken, Interim Director, Aviation Business and Properties 
Wayne Grotheer, Director, Aviation Project Management 
SUBJECT:  Concourse A Port Shared Use Lounge (C801207) 
Amount of this request:             $  6,000,000 
Total estimated project cost:         $ 24,726,000 
ACTION REQUESTED 
Request Commission authorization for the Executive Director to (1) execute a contract for design
services, and (2) complete design for the Concourse A Port Shared Use Lounge Project at Seattle-
Tacoma International Airport for an estimated cost of $6,000,000. The total estimated project
cost is $24,726,000. 
EXECUTIVE SUMMARY 
This project will expand and develop the Port shared use lounge located on Concourse A at
Seattle-Tacoma International Airport (Airport). It will expand into space that will be constructed
by Delta Air Lines, Inc. as part of the Concourse A Building Expansion for Lounges project (CIP
#C801205), under a tenant reimbursement agreement. The design of that project was authorized
by the Port of Seattle Commission in April 2021 and is currently 90 percent complete. 
This project will develop/re-develop approximately 16,000 square feet (SF) of space on the
mezzanine level of Concourse A. It will build out a new, expanded shared use lounge, common
circulation space, and prepare adjacent non-lounge space into leasable space.
JUSTIFICATION 
With the  Airport's  International Arrivals Facility (IAF) converting Concourse A gates into
international capable gates, the Port anticipates a greater number of international departures on
Concourse A. The Port currently has two shared use lounges, one located at the South Satellite
and another located on Concourse A (currently operating under "The Club at SEA" brand), which
currently serves international airlines, priority pass members, and walk-up guests. Based on prepandemic
volumes, guest levels had increased a total of 390% in both shared use lounges and
899% in Concourse A lounge alone since 2015. As international traffic is now returning, and we

Template revised January 10, 2019.

COMMISSION AGENDA  Action Item No. 10d                                 Page 2 of 6 
Meeting Date: December 14, 2021 
have seen a resurgence of domestic passenger levels, we feel confident that by the time this
lounge is constructed, demand will more than have returned to utilize the additional space. 
This project expands the shared use lounge located on Concourse A, where we are projecting
over 220,000 guest visits to the Club on the Concourse annually, post pandemic. The lounge today
is not large enough to meet this demand, evidenced by the lounges turning away an average of
861 passengers per month in 2019. Additionally, once the IAF project is online, it will be bringing
additional international departures to Concourse A. Lastly, the aging condition and lack of Port
capital investment in the current lounge facilities has led to negative customer feedback and poor
industry standard Skytrax ratings. These investments will improve those customer service
metrics. 
The project can also be justified from a financial analysis perspective. Including the $14 million
allocated share of the Concourse A Building Expansion project, this project generates a $4.1
million positive net present value.
Diversity in Contracting 
The project team worked with the Diversity in Contracting team to establish a women-and
minority-owned business enterprise (WMBE) aspirational goal of 13% for the procurement of the
design consultant. 
DETAILS 
This project's expansion and redevelopment is facilitated by the Concourse A Building Expansion
for Lounges project. That project will increase the space available on the mezzanine level for the
Port-shared use lounge. This opportunity to expand the existing footprint will allow the Club at
SEA on A to meet projected passenger demand, increase non-aeronautical revenue, improve
customer service, as well as strengthen the Port's ability to serve premium international airlines
who don't have access to an exclusive lounge at the Airport. 
This project will build out the entire 16,000 SF floor plate made available by the Concourse A
Building Expansion for Lounges project. The space breakout is as follows: 
(1)   12,000 SF Port shared use lounge 
(2)   2,800 SF of future leasable office space 
(3)   1,200 SF of circulation and ancillary space 
The expanded lounge will serve passengers from up to 4 concurrent international wide-body
flights, providing an increased level of service with food and beverage service, showers, business
services, power outlets at every seat and strong Wi-Fi coverage. 
The lounge construction will need to be phased to allow the Club at SEA on Concourse A to remain
in operation in its current location during construction of the building expansion project. The

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

COMMISSION AGENDA  Action Item No. 10d                                 Page 3 of 6 
Meeting Date: December 14, 2021 
lounge project team is working with the building expansion for lounges project team to
determine the best approach to phasing both projects. 
The Concourse A Port Shared Use Lounge has been identified as a "tier two project" under the
Port's Sustainable Project Framework. The project scope was determined to have limited
opportunities to integrate sustainability beyond LEED certification because the energy-related
systems and transportation categories (e.g., HVAC, building envelop, EV charging stations etc.)
are provided through the Concourse A Building Expansion for Lounges project noted above.
However, the project is required to obtain, at minimum, LEED Silver certification for commercial
interiors for the Club at SEA. 
Scope of Work 
The project will complete the following: 
(1)   Build a lounge that is large enough to meet capacity demand by international airline 
customers, third party membership guests (i.e., Priority Pass) and domestic walk-up
customers. 
(2)   Equip the lounge with food and beverage service, showers, business services and a
variety of seating units including power at every seat.
(3)   Offer  strong  Wi-Fi  coverage,  most  likely  requiring  a  dedicated  communications
equipment room. 
(4)   Obtain, at minimum, LEED Silver certification for interior design and construction. 
(5)   Build out space on the floorplate not used for the lounge as leasable space. 
Schedule 
It is anticipated that construction of this project will begin after completion of the mezzanine
level of the building expansion project is complete, currently scheduled for 2023 Quarter 1. The
building expansion project will itself be complete in 2023 Quarter 3. 
Activity 
Design start                                    2022 Quarter 1 
Commission construction authorization       2022 Quarter 4 
Construction start                             2023 Quarter 1 
In-use date                                    2024 Quarter 1 
Cost Breakdown                                     This Request           Total Project 
Design                                                  $6,000,000             $6,140,000 
Construction                                                     $0            $18,586,000 
Total                                                         $6,000,000             $24,726,000 
ALTERNATIVES AND IMPLICATIONS CONSIDERED 
Several alternatives were investigated during the development of this project. 

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

COMMISSION AGENDA  Action Item No. 10d                                 Page 4 of 6 
Meeting Date: December 14, 2021 
Alternative 1  Do not construct a remodeled shared use lounge at the Airport 
Cost Implications: $0 
Pros: 
(1)   Lowest cost alternative 
Cons: 
(1)   This alternative would not provide the needed space to accommodate the post-IAF 
passenger demand and would require international airlines to seek other means to
cater to their first-class passengers. 
(2)   This alternative does not achieve any of the Port's goals for lounges, including providing
premium lounge space as it contracted to with multiple international airlines. 
(3)   Fails to meet the Port's anticipated lounge demand and anticipated level of service to
support international operations on Concourse A. 
This is not the recommended alternative. 
Alternative 2  Remodel within the footprint of the current Club at SEA on Concourse A only 
Cost Implications: $9,000,000 
Pros: 
(1)   Lower cost than expanding the lounge. 
Cons: 
(1)   While the remodeled existing lounge footprint would bring greater appeal, it would not
be able to serve the growing demand and passengers would continue to be turned
away. 
(2)   Would not utilize the expanded footprint made available by Delta's lounge expansion
project. 
(3)   This alternative does not achieve any of the Port's goals for lounges, including providing
premium lounge space as it contracted to with multiple international airlines. 
(4)   Fails to meet the Port's anticipated lounge demand and anticipated level of service to
support international operations on Concourse A. 
This is not the recommended alternative. 
Alternative 3  Build out the entire floorplate provided by the Building Expansion for Lounges
project. 
Cost Implications: $24,726,000 
Pros: 
(1)   Meets the Port's anticipated lounge demand and anticipated level of service to support
international operations on Concourse A 
(2)   Provides additional capacity to accommodate lounge guests that would otherwise be
turned away, while increasing the Port's lounge revenue opportunities. 

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

COMMISSION AGENDA  Action Item No. 10d                                 Page 5 of 6 
Meeting Date: December 14, 2021 
(3)   Improves the Port's shared lounge level of service and likely Skytrax common use lounge
customer service ratings 
(4)   Provides an important asset to support IAF conversion of Concourse A gates to
international gates, and supports attracting and accommodating new and existing
airline partners expanded service at SEA 
(5)   Provides additional leasable non-lounge space that will increase Port revenues. 
Cons: 
(1)   Highest cost alternative 
This is the recommended alternative. 
FINANCIAL IMPLICATIONS 
Cost Estimate/Authorization Summary              Capital        Expense           Total 
COST ESTIMATE 
Original estimate                                $22,000,000               $0     $22,000,000 
Current change                                $1,951,000       $775,000      $2,726,000 
Revised estimate                               $23,951,000        $775,000     $24,726,000 
AUTHORIZATION 
Previous authorizations                            $140,000               $0        $140,000 
Current request for authorization                $6,000,000               $0      $6,000,000 
Total authorizations, including this request       $6,140,000               $0      $6,140,000 
Remaining amount to be authorized           $17,811,000       $775,000    $18,586,000 
Annual Budget Status and Source of Funds 
This project, CIP C801207, was included in the 2022-2026 capital budget and plan of finance with
a budget of $23,951,000. The funding source would include Airport Development Fund and 
revenue bonds. 
Financial Analysis and Summary 
Project cost for analysis              $24,726,000+$14M share of capital cost = $38,726,000 
Business Unit (BU)                  Non-aero 
Effect on business performance     NOI after depreciation will increase due to capital (and
(NOI after depreciation)             operating) costs 
IRR/NPV (if relevant)                The business case/NPV analysis will include the allocated
investment from the Concourse A Lounge Expansion
project and the costs of this project.
Incremental NPV $4.1 million 
CPE Impact                       None 

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

COMMISSION AGENDA  Action Item No. 10d                                 Page 6 of 6 
Meeting Date: December 14, 2021 
Future Revenues and Expenses (Total cost of ownership) 
Maintenance, utilities, and janitorial costs will be incurred, and will be based on the completed
design. Revenues are expected and are included in the Financial Analysis above. 
ATTACHMENTS TO THIS REQUEST 
(1)   Presentation 
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS 
April 27, 2021  The Commission authorized design and a tenant reimbursement agreement
for the Concourse A Building Expansion for Lounges project. 














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