Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No. 10b
ACTION ITEM Date of Meeting April 22, 2025
DATE: March 20, 2025
TO: Stephen P. Metruck, Executive Director
FROM: Jeff Wolf, Director, Aviation Commercial Management
Khalia Moore, Assistant Director, Aviation Commercial Management
Scott Van Horn, Manager, Business Development & Assistant ACDBE Liaison
SUBJECT: Lease and Concession Request for Proposal for Six Various Food and Beverage
Locations and Fourteen Various Retail Locations (Specialty and Convenience) that
will naturally expire between 2025 and 2028 at Seattle-Tacoma International
Airport (SEA or Airport)
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) conduct the release of a
Request for Proposal (RFP 25-1) and (2) execute a Lease and Concession Agreement with selected
proposers for the twenty (20) Airport Dining and Retail (ADR) locations that will naturally expire
between 2025 and 2028.
EXECUTIVE SUMMARY
This request is for existing ADR locations that were part of the original Lease Group 1, awarded
in 2016, and will naturally expire between 2025 through 2028. Staff will utilize the same RFP
process that reflect Commission’s guidance used in past ADR program redevelopment Lease
Groups.
The continued redevelopment of the ADR program offers an excellent opportunity to advance
the Port’s Century Agenda goals by enhancing the Airport’s profile as the preferred gateway to
the Pacific Northwest by promoting job growth, creating new opportunities for small, local, and
disadvantage businesses, and by meeting the expectations of the traveling public for quality food
service, retail products, and personal services.
The ADR program is an important element of the Port’s ongoing efforts to provide outstanding
customer service and improve the traveling experience. In addition, the businesses generate
significant revenue that is reinvested to support airport operations and capital improvements at
the Airport.
COMMISSION AGENDA – Action Item No. 10b Page 2 of 4
Meeting Date: April 22, 2025
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
With the completion and build-out of the ADR Master Plan, these twenty (20) locations will
naturally expire between calendar years 2025 and 2028, as outlined below:
2025 Expiring Space Numbers
CA-02, CA- 11, CA-12, CB-08, CT-08, CT-11
2026 Expiring Space Numbers
CA-01, CA-08, CB-07, CC-14, CC-15, CT-17, CT-19
2027 Expiring Space Numbers
CC-12, CD-04, CT-04, CT-05, CT-16
2028 Expiring Space Numbers
BC-03
Vacant NE-01
The RFP bidding opportunities will be comprised of both single unit and multi-unit packages. For
the multi-unit opportunities, there will be one food and beverage package and one retail
package, and both will consist of two separate locations. There will be at least one (1) location
specifically identified for small business proposals only in both the retail and food & beverage
categories.
To the extent possible, staff will attempt to remove/reduce barriers to entry by continuing with
the competitive process improvements implemented in past RFPs. These improvements include
1) removal of capital investment scoring, 2) elimination of the bid bond requirement, 3)
conducting RFP training, and 4) the establishment of Commission- approved Small Business
exemptions for labor peace.
The approval of these proposed RFP and subsequent contracting opportunities continues to
support the Port’s Century Agenda to create 100,000 new jobs and provide opportunities for
small, local, and disadvantaged businesses.
Diversity in Contracting
The ADR program is governed by the Federal Aviation Administration (FAA) and will include
Airport Concession Disadvantage Business Enterprise (ACDBE) aspirational goals in line with the
Aviation Business Goals and Objectives. Current 2025 goals for ACDBE participation stands at
23.5%.
DETAILS
The following locations that will be released as part of this RFP include:
COMMISSION AGENDA – Action Item No. 10b Page 3 of 4
Meeting Date: April 22, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Schedule
Preliminary schedule for the RFP and Agreement process:
Commission authorization to release RFP 25-1 April 2025
Release RFP 25-1 Documents Q1 2026
Written Proposals Due for RFP 25-1 Q1/Q2 2026
Award and Lease Agreement Execution Q3/Q4 2026
Business Terms
Food and Beverage Lease and Concession Agreements will be for a period of twelve (12) years.
Retail Lease and Concession Agreements will be for a period of ten (10) years. These terms are
standard within the ADR program an in-line with recent RFP awards/contracts including
Concourse C Expansion (CCE), which was awarded in 2024.
Concession fees paid by selected tenants will be determined as part of the RFP process.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 - Directly negotiate some or all twenty (20) opportunities individually with new
tenants.
Pros:
(1) Doesn’t require the Port to undergo the RFP process.
Cons:
(1) Inhibits the process of fair competition through direct negotiation.
(2) Port will not get the benefits of a competitive process and innovations available with
each of these RFPs.
This is not the recommended alternative.
Alternative 2 - Directly negotiate extensions/new agreement with some or all twenty (20)
opportunities individually with current tenants in these locations.
Pros:
(1) Doesn’t require the Port to undergo the RFP process.
Cons:
(1) Inhibits the process of fair competition.
(2) Port will not get the benefits of a competitive process and innovations available with each
of these RFPs.
(3) No new business opportunities for an extended period.
COMMISSION AGENDA – Action Item No. 10b Page 4 of 4
Meeting Date: April 22, 2025
Template revised June 27, 2019 (Diversity in Contracting).
This is not the recommended alternative.
Alternative 3 – Issue competitive RFPs for the twenty (20) opportunities.
Pros:
(1) Allows for fair competition.
(2) Creates additional opportunities for new small, WMBE and ACDBE businesses and the
introduction of new innovations in technology as identified in the RFP proposals.
Cons:
(1) Due to the current economic environment, the Port may receive limited responses to
the RFP.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
The twenty (20) spaces represent a significant portion of overall ADR program revenue. Approval
of this request for the RFP process and agreement(s) execution will allow staff to ensure
continuity of future non-aeronautical revenue generation of the spaces.
ATTACHMENTS TO THIS REQUEST
(1) Presentation
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
April 9, 2025 –The Commission authorized to take all steps necessary to complete the Tenant
Airport Dining and Retail (ADR) Shell & Core Renovations (TASCR) project at the Seattle-Tacoma
International Airport (SEA or Airport), for a total project authorization of $10,373,000.
December 12, 2023 The Commission approved the CCE RFP release of 10 spaces within
Concourse C Expansion and 3 locations in areas adjacent to the Concourse C Expansion.
November 12, 2023 The Commission was briefed on ADR Master Plan and approved
recommendations for the CCE RFP process.