Template revised April 12, 2018.
COMMISSION
AGENDA MEMORANDUM Item No. 11a
BRIEFING ITEM Date of Meeting January 27, 2026
DATE: January 5, 2026
TO: Stephen P. Metruck, Executive Director
FROM: Jeffrey Wolf, Director, Aviation Commercial Management
Geoffrey Foster, Assistant Director, Aviation Business Development
SUBJECT: Rental Car Program at Seattle-Tacoma International Airport
EXECUTIVE SUMMARY
The Consolidated Rental Car Facility (RCF) has been in operation since May 2012, promoting job
growth, meeting the expectations of the traveling public, and providing a steady source of non-
aeronautical revenue to Seattle-Tacoma International Airport (SEA or Airport or Port). The Port
provides the transportation services for passengers to and from the terminal and the RCF, while
the rental car operators manage their operations and provide facility management for day-to-
day maintenance of the RCF.
The rental car program at SEA is a critical component of the Airport’s revenue strategy, typically
the second highest source of non-aeronautical revenue behind Airport parking. The program
includes on-airport operators physically located at the RCF, but also off-airport and Fixed Base
Operator (FBO) rental car companies, which have facilities in the nearby area. Currently, there
are 11 brands operating at the RCF, along with one Airport Dining and Retail (ADR) tenant within
the facility.
This briefing is to provide Commission with 1) an update on the rental car program’s progress
over the years, 2) an update on the RCF as we near the mid-point (2027) with the original 30-year
lease agreement, and 3) preview upcoming actions that will be before Commission over the next
year. As part of these updates, staff will discuss the space posture rebidding process of the
concession agreements as part of the overall lease, which is currently underway.
DETAILS AND BACKGROUND
On May 13, 2008, the Commission authorized the construction of a new consolidated facility at
the northwest corner of International Boulevard and S. 160
th
street at the northern end of the
Airport. Construction soon began and, after a delay due to the financial crisis in 2008 and 2009,
the RCF officially opened to the public on May 17, 2012. Prior to the opening of the RCF, car rental
operations at SEA were limited, constrained, and split, with some operators occupying two floors
of the Airport’s parking garage with the remaining operators shuttling customers to their nearby
locations around SEA.
COMMISSION AGENDA – Briefing Item No. 11a Page 2 of 6
Meeting Date: January 27, 2026
Template revised September 22, 2016.
As it was in 2008 and remains today, car rentals continue to be the second largest source of non-
aeronautical revenue for the Airport, with total revenue to the Port generated from this site in
2025 of over $90 million. The Port receives revenues from concession fees, land rent, and
Customer Facility Charges (CFCs), which are fees paid by rental car customers which funds the
debt service payments for construction of the facility as well as on-going major maintenance
expenses. CFCs are adjusted pursuant to Resolution 3624 and increases are usually included in
the normal annual budget process for the Port. When the facility opened in 2012, CFCs were
$6.00 per transaction day and as of 2026, CFCs are $8.00 per transaction day. Concession fees
are at the industry standard of 10% of gross receipts.
Under the lease agreements, Resolution 3624, and pursuant to Washington State law, CFCs are
only available for use to support the construction, operation, and maintenance of the facility and
busing system. Currently, capital projects associated with the RCF outside of the original
construction are funded directly from the CFC fund balance. With the age and on-going intense
use of the facility, there is an increased need for capital projects requiring an increase to CFC
rates over time to fully cover the facility’s debt service, operating costs for the bus system, and
capital projects.
The structure of agreements with the rental car companies provides for reduced maintenance
costs incurred by SEA as the rental car operators collectively hire and pay for a facility and fuel
manager to oversee the maintenance and day-to-day operations at the facility itself. The Port,
via Airport Operations, provides bus transportation to rental car customers travelling to and from
the facility and terminal. The bus system operates 24-hours a day, 365 days a year, and
transported over 5 million passengers in 2025. Off-airport rental car customers must take SEA’s
bus service to the RCF, where they are picked up by the off-Airport operators’ shuttles.
While the Port has limited responsibility for maintaining some systems, such as fire alarms, FIDS,
and Port Wi-Fi at the RCF, replacements and/or repairs of systems exceeding an adjusted dollar
threshold do fall to the Port as “major maintenance” items. With the halfway point in the original
30-year lease quickly approaching, the facility will continue to undergo several capital projects,
which will be reviewed as part of this briefing. Additionally, staff is currently in the process of the
only rebidding opportunity under the 30-year lease agreement, which will determine the
building’s configuration for the next 15 years. Over the next year, Commissioners will be acting
on several items relating to the RCF, including capital project authorizations and adopting new
concession agreements as part of the rebidding process.
A component of the 30-year lease is a limited concession agreement, which had an original term
of ten (10) years. At each 10-year mark of the lease, the facility’s space assignments were to be
rebid amongst those operators with SEA market share to allow for facility adjustments based on
changes in the rental car industry. As a result of the COVID-19 pandemic, the Commission
approved a modification to the concession agreement, extending its term to 15-years while not
making any extensions to the underlying 30-year lease agreement. This extension also provided
COMMISSION AGENDA – Briefing Item No. 11a Page 3 of 6
Meeting Date: January 27, 2026
Template revised September 22, 2016.
a necessary benefit to the CFCs, reducing the need to perform multiple re-demising projects, and
thus, saving costs, in support of the space rebidding process. Now, we will have just one rebidding
and one re-demising project through the end of May 2042. While the lease agreement governs
the rebidding process, after the space bidding is completed, a new concession agreement
focusing on Minimum Annual Guarantee (MAG) amounts used as part of the space bidding will
be established. The proposed form for the new concession agreement under the continuing lease
agreement will be brought back before Commissioners for approval later this spring or early
summer.
ATTACHMENTS TO THIS BRIEFING
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
October 28, 2025 – The Commission authorized rental car facility boiler skid replacement
project budget increase
January 14, 2025 – The Commission authorized the quick turnaround fire suppression system
replacement project at the rental car facility
September 24, 2024 – The Commission authorized design for the customer service building
re-demising project at the rental car facility
November 14, 2023 – The Commission authorized the completion of the 5
th
floor membrane
replacement project at the rental car facility
January 10, 2023 – The Commission authorized a contract for rental car curbside assistance
June 22, 2021 – The Commission authorized the security camera improvement project for the
rental car facility
May 25, 2021 – The Commission authorized a change order for the pavement remediation
project at the rental car facility
April 13, 2021 – The Commission authorized tenant relief to the rental car operators through
extension of the concession agreement and modifications to the minimum annual
guarantee
February 9, 2021 - The Commission authorized a change order to the pavement remediation
project at the rental car facility for the deferment of the project due to the pandemic
February 11, 2020 – The Commission authorized design and construction for security
improvements at the rental car facility
December 10, 2019 – The Commission authorized design for the security camera
improvement project at the rental car facility
April 23, 2019 – The Commission authorized the pavement remediation project at the rental
car facility
February 26, 2019 – The Commission authorized the procurement of additional CNG buses
for the rental car facility
January 8, 2019 – The Commission was briefed on the need for additional buses for the rental
car facility and employee parking
January 30, 2018 – The Commission authorized a contract for rental car curbside assistance
COMMISSION AGENDA – Briefing Item No. 11a Page 4 of 6
Meeting Date: January 27, 2026
Template revised September 22, 2016.
June 27, 2017 – The Commission authorized the procurement of a rental car bus fleet tracking
system and project
September 13, 2016 – The Commission authorized the termination of a rental car lease
agreement for FireFly Rent A Car
August 5, 2014 – The Commission authorized a change order and settlement regarding
construction of the rental car facility project
December 10, 2013 – The Commission authorized a change order for the completion of the
rental car facility project
April 23, 2013 – The Commission was briefed on an incentive award from Seattle City Light
for the rental car facility project
April 23, 2013 – The Commission authorized a change order for the roadway program related
to the rental car facility project
November 6, 2012 – The Commission authorized a change order relating to the bus
maintenance facility as part of the rental car facility project
October 23, 2012 – The Commission adopted resolution 3669 declaring permanent
easements and electrical infrastructure improvements at the rental car facility site
October 2, 2012 – The Commission authorized a change order relating to the small operator
area at the rental car facility
July 24, 2012 – The Commission was briefed on public art installations, including at the rental
car facility
May 22, 2012 – The Commission was briefed on the last monthly updated on the rental car
facility construction and the recent opening of the new facility
April 24, 2012 – The Commission was briefed on the construction progress for the rental car
facility project
April 24, 2012 – The Commission was briefed on LEED Certification for the rental car facility
March 27, 2012 – The Commission was briefed on the construction progress for the rental
car facility project
March 27, 2012 – The Commission authorized a change order for the rental car facility’s bus
maintenance facility
February 28, 2012 – The Commission was briefed on the construction progress for the rental
car facility project
January 24, 2012 – The Commission was briefed on the construction progress of the rental
car facility project
January 10, 2012 – The Commission authorized the on-call agreement for electrical work at
the rental car facility project
December 13, 2011 – The Commission was briefed on the construction progress for the rental
car facility project
October 25, 2011 – The Commission was briefed on the construction progress for the rental
car facility project
October 4, 2011 – The Commission authorized the execution of a contract for the build-out
of the small operator area within the rental car facility project
September 27, 2011 – The Commission was briefed on the construction progress for the
rental car facility project
COMMISSION AGENDA – Briefing Item No. 11a Page 5 of 6
Meeting Date: January 27, 2026
Template revised September 22, 2016.
August 23, 2011 – The Commission was briefed on the construction progress for the rental
car facility project
August 23, 2011 – The Commission authorized a change order for the construction of the
rental car facility project
July 26, 2011 – The Commission was briefed on the construction progress for the rental car
facility project
July 26, 2011 – The Commission authorized a change order for the construction of the rental
car facility project
June 28, 2011 – The Commission was briefed on the construction progress of the rental car
facility project
May 24, 2011 – The Commission was briefed on the construction progress of the rental car
facility project
May 10, 2011 – The Commission authorized the bidding for the build-out of the small
operator area within the rental car facility project
April 5, 2011 – The Commission was briefed on the construction progress of the rental car
facility project
February 22, 2011 – The Commission was briefed on the construction progress of the rental
car facility project
January 25, 2011 – The Commission was briefed on the construction progress of the rental
car facility project
November 30, 2010 – The Commission was briefed on the construction progress of the rental
car facility project
October 26, 2010 – The Commission was briefed on the construction progress of the rental
car facility project
September 28, 2010 – The Commission was briefed on the construction progress of the rental
car facility project
August 24, 2010 – The Commission was briefed on the construction progress of the rental car
facility project
July 27, 2010 – The Commission was briefed on the construction progress of the rental car
facility project
June 22, 2010 – The Commission was briefed on the construction progress of the rental car
facility project
May 18, 2010 – The Commission was briefed on the construction progress of the rental car
facility project
April 27, 2010 - The Commission was briefed on the construction progress of the rental car
facility project
March 23, 2010 – The Commission was briefed on the construction progress of the rental car
facility project
March 9, 2010 – The Commission authorized an amendment to the contract for public art
installation at the rental car facility project
February 23, 2010 - The Commission was briefed on the construction progress of the rental
car facility project
COMMISSION AGENDA – Briefing Item No. 11a Page 6 of 6
Meeting Date: January 27, 2026
Template revised September 22, 2016.
February 9, 2010 – The Commission authorized the execution of Concession Agreements for
operators at the Rental Car Facility
January 26, 2010 – The Commission was briefed on the construction progress of the rental
car facility project
December 15, 2009 – The Commission authorized the execution of an agreement relating to
the roadway improvements associated with the rental car facility project
October 27, 2009 – The Commission authorized the procurement of 29 CNG buses for the
rental car facility project
October 27, 2009 – The Commission was briefed on the construction progress of the rental
car facility project
October 6, 2009 – The Commission authorized a change order for the construction of the
rental car facility project
September 22, 2009 – The Commission was briefed on the construction progress of the rental
car facility project
September 17, 2009 – The Commission authorized a change order for the construction of the
rental car facility project
August 25, 2009 – The Commission was briefed on the construction progress of the rental car
facility project
August 18, 2009 – The Commission authorized a change order for the construction of the
rental car facility project
July 28, 2009 – The Commission was briefed on the rental car facility project and resumption
of construction
June 30, 2009 – The Commission adopted Resolution 3624, amending 3599, raising CFC limits
June 30, 2009 – The Commission authorized the resumption of construction for the rental car
facility project
June 9, 2009 – The Commission authorized the issuance of bonds for the rental car facility
project
March 5, 2009 – The Commission was briefed on the financial markets and rental car facility
project financing
January 27, 2009 – The Commission was briefed on the financial markets and rental car facility
project financing
December 15. 2008 – The Commission authorized the temporary suspension of the rental car
facility project due to financial crisis and bond markets
November 11, 2008 – The Commission authorized 100% roadway design for the rental car
facility project
November 11, 2008 – The Commission was briefed on the rental car facility project
October 14, 2008 – The Commission approved use of $20 million of ADF to continue project
July 1, 2008 – The Commission adopted Resolution 3599, amending Resolution 3542,
modifying CFC fees
July 1, 2008 – The Commission authorized sale of bonds to fund the project
May 13, 2008 – The Commission authorized the rental car facility project
