Item No. 8d_supp
Meeting Date: February 24, 2026

PACCAR Lease Termination

Actions Requested
Requesting Commission authorization for the Executive Director to execute a
Lease Termination Agreement for the PACCAR Lease Agreement at SEA to
facilitate their transition to Boeing Field and support SEA's airport capital
development program and operations.

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Lease Overview
 PACCAR has a substantial footprint on Southend of the airfield
that can provide a critical relief valve for airport operations and
capital development needs
 PACCAR was aware of the potential displacement due to the
Port's long-term vison and secured a new lease at BFI
 As part of this lease termination PACCAR will be required to
make tenant improvements to the building, remove the existing
AFFF (PFAS-based) fire suppression system, and remove the
aircraft fueling system.
 In the interim, the facility will be used to support SEA's growing
operation by providing real estate to support multiple Port
functions. The anticipated future and long-term use of this site
will support future development at SEA.

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Lease Termination Details
PACCAR Lease Termination
Tenant Name

PACCAR Inc.

Original Expiration

May 31st , 2031

Environmental Indemnification

 The existing lease agreement indemnification will survive lease
termination in the event the Port discovers environmental
contamination during the demolition of the building

Monthly Rental Rate

$37,360.36

Tenant Improvement
Requirements

 Removal of the PFAS based fire suppression system and components in
continuous contact with PFAS
 Installation of water-based fire suppression system at a lower rating
converting the hanger into a warehouse
 Removal of underground Aircraft Fueling system to include but not
limited to underground fuel tank, piping, fixtures, and any
environmental contamination discovered

Potential Uses:

 Support of Port Capital Projects
 Aviation Maintenance space
 Fire Department Storage
 Operational support space

New Termination Date

 The end of the month following Tenant completion and Port approval of
the Tenant Improvement Requirements listed above

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