1                                                                      Item No. 10f 
2                                                                      Meeting Date: December 14, 2021 
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4 
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6                                               ORDER NO. 2021-15 
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8                              An Order of the Port of Seattle Commission 
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10                           to  direct   the  Executive  Director  to  develop
11                           recommendations to support the outcomes identified in
12                           the SEA Tenant Build-Out Analysis. 
13 
14                                                PROPOSED 
15                                             December 14, 2021 
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17                                                Introduction 
18 
19    The Port of Seattle's Airport Dining and Retail program serves millions of passengers and
20    customers each year. While meeting the demand for retail and restaurants by the traveling public
21    is the primary goal of the program, it also seeks to increase the participation of women and minority
22    businesses through the airport concessions disadvantaged business enterprise program, low
23    barriers to the entry kiosk program, and significant outreach and training programs for our
24    communities. 
25 
26    Implementation of programs to encourage the success of woman- and minority-owned businesses
27    (WMBE) and small businesses at the Seattle-Tacoma International Airport (SEA) are examples
28    that have demonstrated how the Port accomplishes its goals to increase WMBE and small business 
29    participation at SEA. 
30 
31    Many businesses at SEA participated in a competitive leasing process through the Airport Dining
32    and Retail Master Plan. Specifically, tenants in lease groups two, three, and four ("Affected
33    Tenants") have described incurring negative financial impacts due to the effects of the COVID-19
34    pandemic and additional expenses caused by unforeseen build-out costs during their retrofitting of
35    sites at SEA pre-pandemic. 
36 
37    In its work to encourage the success of WMBE and small businesses at SEA, the Port completed 
38    a Tenant Build-Out Analysis that examined the overall design and construction process for Airport
39    Dining and Retail tenants at the airport. The process started with a Voice of the Tenant meeting.
40    All tenants were invited along with their architects, engineers, general contractors, and sub-
41    contractors. Several themes arose that were common with all the tenants that included the design
42    review processes, Port design standards, building and fire review times, and the permitting
43    processes.
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Order 2021-15  Support the outcomes identified in the SEA Tenant Build-Out Analysis                 Page 1 of 2

47    Following  the  Voice  of  the  Tenant  Meeting,  Port  subject  matter  experts  (Facilities  and
48    Infrastructure, Aviation Building Department, Fire Department, Project Management, and Airport
49    Dining and Retail staff) filtered through the issues and developed recommendations for best
50    practices moving forward. The team decided upon the following: 
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52            (1)     Developing a new ADR Master Plan with subject matter experts at the table 
53                    including the tenants; 
54            (2)`    Evaluation of Port Standards and to create ADR-specific standards that would be
55                    included in the Request for Proposals; 
56            (3)     Re-evaluate base building conditions based on new ADR Master Plan; 
57            (4)     Prior to tenant design, the Port would demolish the space and provide a "vanilla
58                    shell;" 
59            (5)     After demo, the Port would verify as-built conditions with the new tenant; 
60            (6)     The Port would address any necessary based building conditions; 
61            (7)     Port  standards  that  impact  ADR  tenants  will  be  discussed  with  Aviation
62                    Commercial Management/ADR team prior to implementation to understand the
63                    business and  cost impacts to the tenants/program; and 
64            (8)     Include   subject   matter   experts   during   key   planning   decisions.   The
65                    recommendations were discussed with Aviation leadership and adopted as best
66                    practices moving forward. 
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68    As these best practices were adopted after the Affected Tenants completed their build-outs, the
69    Affected Tenants were forced to pursue additional funding as a result of the additional cost related
70    to the issues outlined in the Tenant Build-Out Analysis. To address this challenge, the Executive
71    Director will review the Tenant Build-Out Analysis, evaluate the types and levels of financial
72    impacts experienced by these tenants, and recommend how to implement the findings of the study. 
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74                                             Text of the Order 
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76    The  Port  of  Seattle  Commission   hereby   directs  the  Executive  Director  to  develop
77    recommendations to the Commission based on the outcome of the SEA "Tenant Build-Out 
78    Analysis;" which demonstrated that deficiencies in airport facilities may result in additional design
79    and build-out costs for tenants. 
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81    This recommendation shall provide alternatives, such as lease extensions, that address the potential
82    additional costs suffered by the Affected Tenants which were not anticipated by either party at the
83    time of the bidding process.
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85    The  recommendations  shall  be  delivered  to  the  Commission  for  consideration  by  the 
86    January 25, 2022, Commission meeting. 
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