Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No. 8f
ACTION ITEM Date of Meeting May 27, 2025
DATE: May 19, 2025
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director, Aviation Facilities and Capital Programs
Mark Leutwiler, Interim Director, Airport Operations
Eileen Francisco, Director, Aviation Project Management
SUBJECT: S Concourse Evolution Base Building Remaining Design Funds and Facilitating
Projects Construction Briefing
Amount of this request: $ 125M
Total estimated project cost:
$1.9B – 2.2B
ACTION REQUESTED
Request Commission authorization for the Executive Director to (1) increase funding to complete
S Concourse Evolution base building design, (2) execute a professional services contract for
design services and construction bid packages for the A6 Widebody Remediation, (3) advertise
and execute construction contracts for Cargo 3, Cargo 6, and gate D6, (4) advertise and execute
a program specific contract for special testing and inspection, (5) modify the existing United
Airlines lease for the cargo 3 maintenance facility, (6) transfer scope and budget of $25M from
CIP C801375 to CIP C801203 for gate A6 Widebody Remediation. The total amount of this request
is $125,000,000.
EXECUTIVE SUMMARY
The S Concourse Evolution (SCE) project at Seattle-Tacoma International Airport (SEA) is part of
Upgrade SEA program. This project will extend the life of the S Concourse by upgrading
structural, seismic, and building systems to meet modern standards while enhancing the
customer experience. A multi-phased construction approach, along with facilitating projects,
mitigates operational impacts by offsetting lost gate and holdroom capacity through short-term
improvements at multiple SEA locations.
The S Concourse Expansion (SCE) Project is a critical infrastructure renewal effort at SEA,
addressing the 50-year-old facility’s seismic, structural, and code compliance needs while
enhancing the passenger experience. This project is essential to maintaining SEA’s operational
efficiency and ensuring the concourse meets current safety and service standards. SCE project
will renew this important regional facility through two main objectives:
COMMISSION AGENDA – Action Item No. 8f Page 2 of 7
Meeting Date: May 27, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Extend the useful life and bring the facility up to current code including structural and
seismic upgrades
Re-purpose space left vacant by services relocated to the International Arrivals Facility
(IAF) and enhance the passenger experience by increasing amenities, expanding dining
and retail (ADR) opportunities, and elevating the level of service.
This project does not increase the number of gates or increase the overall capacity at SEA but
focuses on sustaining and enhancing existing infrastructure to meet long-term operational
demands.
JUSTIFICATION
The South Concourse facility at SEA was opened in 1973 and is owned and operated by the Port.
The facility depends on building systems that are well past their useful service lives, and further
development of the facility has been limited by the authorities having jurisdiction, owing to
concerns stemming from current building code minimum requirements. The building systems
and materials used in the original construction, due to their age and manufacture, are difficult to
maintain. The facility also contains areas of encapsulated regulated materials, such as asbestos,
complicating maintenance, renovation, and development. Since the South Concourse was
constructed, passenger volumes and aircraft operations have increased dramatically, security
regulations have expanded, passenger level of service expectations have evolved, and airlines
and retailers have changed their marketing strategies.
Diversity in Contracting
The SCE project includes a 12% DBE requirement for the design contract, a 26% WMBE
requirement for project management and controls, and WMBE requirements of 24% and 27% for
the two existing IDIQ design contracts supporting the facilitating projects. The project team will
ensure these commitments are met. A 5% WMBE requirement has been included for the Gate
D6 construction contract. The project team is working with Diversity in Contracting to identify
the WMBE requirement for the construction contract for the work at Cargo 3 and Cargo 6.
DETAILS
The SCE project will modernize airport facilities to support long-term operational needs while
minimizing disruptions. Phased construction will ensure that no more than three (3) positions for
large international aircraft at S Concourse will be closed at any given time.
COMMISSION AGENDA – Action Item No. 8f Page 3 of 7
Meeting Date: May 27, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Several facilitating projects are necessary to mitigate operational impacts during construction
and provide long-term benefits to SEA’s infrastructure. These projects will utilize existing airport
infrastructure when possible.
The D6 Conversion project is a phased project that includes gates D4-D9 to support converting
the existing Vertical Circulation Ramp to a Passenger Loading Bridge (PLBs) at D6. The project
provides flexibility for airport operations during the S Concourse construction phases. PLBs will
also be replaced at gates D5 & D7 as they have reached end of useful life. Modification to airfield
striping and Safedock guidance systems from Gates D4-D9 will optimize aircraft maneuvering and
operations to ensure safety of passengers and employees.
The Cargo 3 project builds a Cobus parking area to support increased bussing operations for the
hardstand and remote holdroom needs to offset the gate and holdroom closures during the SCE
project. To effectuate this facilitating project, the UA maintenance building lease agreement will
need to be amended (reduced) to support the Cobus parking area. For UA operations, employee
parking will be relocated to the southeast of the UA maintenance facility to ensure continued
access and efficiency for airline staff.
The Cargo 6 hardstand project will convert the aircraft parking from cargo only to being able to
support both cargo and passenger operations. The work at Cargo 6 will include pavement
replacement, re-striping and operational lighting to improve safety and efficiency.
This construction approach was developed to balance several competing factors, including
minimizing disruptions to airport operations, cost efficiency, schedule alignment, customer
experience, airline support, and long-term compatibility to SEA’s facility planning objectives.
Scope of Work
S Concourse
Completion of the S Concourse base building design to support the full remodel of the
facility. Major design dates are:
o 60% Design is expected on 10/08/2025
o 90% Design is expected on 08/04/2026
o 100% Design is expected on 12/17/2026
Cargo 6 Hardstand
Construction necessary to re-purpose the existing hardstand for passenger operations:
o Utility Modifications.
o Additional Security and Lighting per Code.
o Apron pavement replacement as required.
COMMISSION AGENDA – Action Item No. 8f Page 4 of 7
Meeting Date: May 27, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Cargo 3 Cobus and Employee Shuttle Storage Area
Construction necessary to re-purpose an existing parking area for storage of GSE during
SCE project:
o Modify Perimeter Fencing.
o Lighting for the parking area to support employee shuttles and Cobus parking.
Gate D6 Passenger Loading Bridge (PLB) Conversion
Equipment procurement and Construction to restore a gate currently configured for over-
ramp bussing back to an aircraft contact gate:
o Remove existing D6 passenger ramp and bus parking and install a PLB.
o Modify adjacent passenger loading bridges as needed to support the D6
conversion for aircraft parking to meet all safety requirements.
Gate A6 Conversion to Support Widebody Aircraft
Design and construction to reconfigure gate A6 by modifying the following:
o Move A7 and A8 PLBs to provide more space at A6.
o Modify existing international arrival pod to provide more space for aircraft nose.
o Modify utilities to provide additional space for ground support equipment.
Schedule
Activity
Commission Final Design Authorization - SCE Q2 2025
Construction Authorization - Cargo 3 & 6, Gate D6 Q2 2025
Construction Start – Cargo 3 & 6, Gate D6 Q3 2025
Construction Authorization– SCE Early Works Q4 2025
Construction Start – SCE Early Works Q1 2026
In-use Date – Cargo 3, 6, D6 Q2 2026
Full In-use Date – SCE Q2 2038
Cost Breakdown This Request
Total Project
Design $85M
$125M
Construction $40M
$1.7B-$2.0B
Total $125M
$1.9B-$2.2B
ALTERNATIVES AND IMPLICATIONS CONSIDERED
COMMISSION AGENDA – Action Item No. 8f Page 5 of 7
Meeting Date: May 27, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Alternative 1 – Only receive construction authorization for facilitating projects at Cargo 3, Cargo
6, and Gate D6. This would include no additional funding to complete design at this time.
Cost Implications: $40M.
Pros:
(1) Smaller capital investment.
Cons:
(1) Reduced program flexibility to keep base building design on track.
(2) Impact on schedule.
This is not the recommended alternative.
Alternative 2 – Proceed with authorization for remaining design funding and construction
authorization at Cargo 3, Cargo 6, Gate D6 and transfer budget and scope for gate A6.
Cost Implications: $125M
Pros:
(1) Maintains program schedule on track.
Cons:
(1) Large capital investment.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
The current estimate range is expected to be $1.9-2.2B.
Cost Estimate
/Authorization Summary Capital
Expense
Total
COST ESTIMATE
Original estimate $1B
$0
$1B
Previous changes – net $870M
$0
$870M
Current change $0
$0
$0
Revised estimate $1.9B - $2.2B
$0
$1.9B - $2.2B
AUTHORIZATION
Previous authorizations $127,750,000
$0
$127,750,000
Current request for authorization $125,000,000
$0
$125,000,000
Total authorizations, including this request $252,750,000
$0
$252,750,000
Remaining amount to be authorized TBD
$0
TBD
COMMISSION AGENDA – Action Item No. 8f Page 6 of 7
Meeting Date: May 27, 2025
Template revised June 27, 2019 (Diversity in Contracting).
Annual Budget Status and Source of Funds
The South Concourse Evolution project, CIP C801203, was included in the 2025-2029 capital
budget and plan of finance with a budget of $1,870,000,000. The funding sources would be
revenue bonds, Airport Development Fund (ADF), the Bipartisan Infrastructure Law (BIL) grant
funding through the FAA-AIP program, and future Passenger Facility Charge.
Financial Analysis and Summary
Business Unit (BU) Terminal Building Terminal Building
Project cost for analysis $1.9B
$2.2B
Infrastructure grants $225M
$225M
NPV incremental to Base $(223M)
$(339.5M)
Non-aero net cashflow in 2034 $(16.7M)
$(23.4M)
Incremental Terminal Rental Rate $74.84
$88.20
CPE Impact in 2034 $3.73
$4.40
Financial analysis was prepared in May 2024 using the assumptions from Project Design
Definition phase. Financial analysis was based on space data of aero/non-aero from Project
Definition Document (PDD) in 5/2024. Updated financial analysis will be performed to reflect
updated space at the 60% design.
Future Revenues and Expenses (Total cost of ownership)
The cost savings of keeping the current terminal operational would likely present no long-term
savings even with discounting the risk of a potential catastrophic failure; the terminal is still in
need of upgrades driven by code and safety. Balancing the deferral of these costs against the
structural, seismic, and operational needs of the terminal is not recommended.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
May 13, 2025 – The Commission was briefed on S Concourse Evolution and informed of an
upcoming funding request to advance design, scope additions, and construction.
May 14, 2024 – The Commission authorized to Prepare design and construction bid packages for
S Concourse facilitating project, Procure long-lead items.
COMMISSION AGENDA – Action Item No. 8f Page 7 of 7
Meeting Date: May 27, 2025
Template revised June 27, 2019 (Diversity in Contracting).
October 22, 2022 – The Commission authorized to procure a Designer, GC/CM, Project
Management/Controls Support, and Commissioning Agent for SCE.
September 27, 2022 - The Commission was briefed on S Concourse Evolution and project status.
April 13, 2021 – The Commission was briefed on SSAT Renovation Renewal PDD.
