Budget Increase Request
Concourse A Building Expansion
for Lounges (C801205)
June 27, 2023
Item No. 10b_supp
Meeting Date: 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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December 2021
Total Project Cost $78.5M
TRA Value $66M
Project Status
 60% Design
Cost Drivers
 Initial estimate
Overview of Cost Increases
May 2022
Total Project Cost $105M
TRA Value $89.9M
Project Status
 100% Permit Submittal
Cost Drivers
 Design progression (60% - permit)
 No FGMP
June 2023
Total Project Cost $126.5M
TRA Value $111.5M
Project Status
 Construction Document Set
Cost Drivers
 Delayed construction start
 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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