2300 7
th
Avenue, Seattle, WA 98121 info@thewarrengrp.com
2300 7
th
Avenue May 12, 2020
Seattle, WA 98121
Port of Seattle
Seattle-Tacoma International Airport
17801 International Blvd
Seattle, WA 98158
Re: Airport Concessions Tenant Relief
Dear Esteemed Commissioners,
I wanted to take this opportunity to update you on how the current Coronavirus COVID-19
impact to my small business at Seattle-Tacoma International Airport (Sea-Tac). Warren’s News
& Gift, Inc. has operated at Sea-Tac as both a sub-tenant of HMS Host, and currently as a joint
venture partner of Hudson News.
Our current business dba Hudson News has experienced a 95% reduction in sales which is
directly a result of the sudden drop in passenger enplanements. To date, the Port has
completed modest tenant relief in the form of Minimum Annual Guarantee (MAG) deferment.
This is not sufficient to demonstrate your stated dedication to small businesses at the airport. In
our case, deferral of monthly MAG payments is simply kicking the can down the road and is not
a sufficient nor adequate remedy. I believe the Port should and must more seriously consider
rent abatements.
Much of what I’ve heard over the last 2 months has centered around state restrictions on
gifting of public funds. Nevertheless, other agencies like the Liquor and Cannabis Control Board
are waiving expensive licensing fees for extended temporary licensing endorsements/rights to
restaurants to help them to remain solvent. This gifting of public funds seemingly comes with
the blessing of the Governor’s office as desperate times require action and leadership.
I pride myself on providing quality jobs, not just at the airport but for street-side employees
alike. To this end, our Hudson venture has continued health care benefits for our employees
through June 30, 2020 at the cost of $450,000 per month, for which we (as a party to the JV)
are responsible for approximately $56,000 per month.
All of this, we have the privilege of paying only after forking over money for ever increasing
required build out costs to maintain a first class airport concessions program. These build-out
2300 7
th
Avenue, Seattle, WA 98121 info@thewarrengrp.com
costs require us to borrow extensively to cover our share of the capital costs of developing our
venture stores. None of which was lent to us by Hudson corporate, but rather by traditional
lenders including Bank of America and Wells Fargo. But that’s our part in maintaining a good
partnership with the Port of Seattle.
Today, the Port has taken somewhat passive steps such as making visible federal resources
which are only marginally helpful. What’s needed are active steps that provide actual relief for
the businesses that depend on the Port’s ability to attract passengers. That is the Port’s part to
play in this “partnership” to ensure a continued small business ecosystem when there is a
return to normal.
Thank you,
Marques Warren
Vice President
