Item No. 10b_supp
Meeting Date: June 27, 2023

Budget Increase Request
Concourse A Building Expansion
for Lounges (C801205)

June 27, 2023

                  Background
 The airport existing lounge space is insufficient to meet passenger demand. This
project allows Delta Air Lines to design and construct a building addition to increase
the supply of terminal lounge space, using a Tenant Reimbursement Agreement
(TRA).
 Design was completed in 2022 and construction is currently underway for this
52,000 square-foot building expansion near the end of Concourse A.
 Incorporates a new passenger lounge for Delta and provide a new buildout space for
the Port’s shared-use lounge (Club at SEA).

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                       Justification
 Delta has notified the Port of additional project increases and escalations during
their efforts to execute an agreement for the Final Guaranteed Maximum Price
(FGMP) with their Contractor.

 Today’s request is to increase the budget to allow for added costs the project will
incur due to:
– Delayed construction start and subsequent increases to the overall project
duration.
– Escalation in construction costs for materials and labor and the volatility in the
construction market and global supply chains.

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     Concourse A Building Expansion for Lounges



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     Concourse A Building Expansion for Lounges



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             Overview of Cost Increases
December 2021                      May 2022                            June 2023
Total Project Cost    $78.5M         Total Project Cost         $105M          Total Project Cost        $126.5M
TRA Value         $66M         TRA Value              $89.9M        TRA Value             $111.5M

Project Status                       Project Status                              Project Status
 60% Design                   100% Permit Submittal               Construction Document Set

Cost Drivers                         Cost Drivers                               Cost Drivers
 Initial estimate                    Design progression (60% - permit)        Delayed construction start
 No FGMP                       Escalation construction cost/materials
 No FGMP


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                      Request
1)  Increase the authorized total project budget by $21,507,000, and
2)  Increase the TRA budget from $89,960,000 to $111,508,000.
This results in a total estimated project cost of $126,507,000.




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                  Questions?


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