Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
10a
ACTION ITEM
Date of Meeting
August 11, 2026
DATE : August 3, 2026
TO: Stephen P. Metruck, Executive Director
FROM: Keri Stephens, Director, Aviation Facilities and Capital Programs
Sabin Mudaliar, Interim Director, Airport Operations
Eileen Francisco, Director, Aviation Project Management Group
SUBJECT: S Concourse Evolution Multi-Year Project Authorization
Amount of this request:
$1,100,000,000
Total estimated project cost:
$2,525,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to increase project authorization
for S Concourse Evolution by $1,100,000,000 for a total authorization of $1,400,000,000. This
authorization will provide funding for all activities necessary to advance the program into 2029.
EXECUTIVE SUMMARY
The S Concourse Evolution (SCE) project at Seattle-Tacoma International Airport (SEA) is a
cornerstone of the Upgrade SEA program. As a critical infrastructure renewal effort, SCE will
modernize a 50-year-old facility to meet current seismic, structural, and building codes. While
the project does not increase gate count, it repurposes space vacated by the International
Arrivals Facility (IAF) to elevate the passenger experience through expanded dining, retail, and
amenities.
This authorization supports the development of multiple Maximum Allowable Construction Cost
(MACC) contracts, ensuring the project remains on the critical path by starting construction in
November 2026. The multi-phased approach maximizes gate capacity throughout construction,
reducing impacts to airlines dependent on the use of widebody gates. This request secures
funding for all project activities into 2029.
Given the SCE program’s scale and complexity, this request provides flexibility to capitalize on
cost-saving and schedule-acceleration opportunities. The team continues to identify efficiencies
to streamline the schedule and reduce expenditures, maintaining sound fiscal discipline within
the total approved program cost.
COMMISSION AGENDA – Action Item No. 10a Page 2 of 6
Meeting Date: August 11, 2026
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
The S Concourse facility at SEA 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 formerly housed the
federal inspection services, which were relocated to the International Arrivals facility several
years ago. Since the S 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.
However, redevelopment of the facility requires updating the space to 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, which complicates maintenance, renovation,
and development.
Diversity in Contracting
The SCE project includes a 26% WMBE aspirational goal for project management and controls,
and a 12% DBE goal for the design contract. The project team is working with Diversity in
Contracting to identify DBE goals for each separate MACC contract.
DETAILS
This request supports a multi-contract MACC delivery approach which allows the team to
sequence work efficiently, manage risks, and pursue cost saving and schedule acceleration
opportunities as design progression and market conditions evolve. The program currently
anticipates approximately six MACCs to complete construction. This request will fund the
program through what is currently anticipated to be the first 4 MACC contracts and preparation
of the fifth. Funding supports but is not limited to design, project management, construction
management, procurements, preconstruction services and funding for the construction of the
scopes of work currently planned for the first 4 MACC contracts. As design and scheduling
progress, the number of MACC contracts covering this scope of work may vary.
The scope of work included in this authorization includes temporary facilities, early work scope
elements including baggage system modifications, demolition, regulated materials removal, civil
infrastructure, structural, and electrical systems. Also included is procurement of long lead
materials such as vertical transportation, passenger loading bridges, select mechanical and
electrical equipment, and curtainwall system. The scope also includes project components to
support the construction of the S Concourse, such as the Interim S Annex holdroom and other
ancillary support facilities.
The S Concourse Evolution (SCE) project delivers a comprehensive modernization of the 50-year-
old facility, addressing critical seismic, structural, and building systems deficiencies while
improving passenger circulation, revenue generation and operational efficiency. The design
COMMISSION AGENDA – Action Item No. 10a Page 3 of 6
Meeting Date: August 11, 2026
Template revised June 27, 2019 (Diversity in Contracting).
supports long-term needs by adding a new upper concourse level, improving dual-level boarding
operations, and expanding areas for dining, retail, lounges, and passenger amenities.
Given the constrained site and continuous gate demand operational pressures, the project relies
on a multi-phase construction and gate-outage strategy to minimize the impact of taking
widebody gates out of service during construction. The team continues active coordination with
airline partners and airport operations to maintain customer service, preserve gate availability,
and minimize gate, ramp and terminal impacts during construction.
The SCE renovation will attain LEED Silver certification once completed. Various sustainable
design strategies will result in an anticipated ~58% reduction of annual operational greenhouse
gas emissions and ~16% reduction of annual energy use from Port Standard. Significant
components contributing to this achievement include exterior enclosure & glazing, lighting,
electrical equipment in lieu of fossil fuel, low-flow plumbing fixtures, EV charging, and reuse of
building material, to name a few. The SCE project will ensure the Port’s environmental
stewardship into the future and for generations to come.
Scope of Work
The SCE project scope overall focuses on a major seismic and structural upgrade that will expand
the building from 360,000 to 510,000 square feet. This added space comes from building upward
and creating a new “Upper Concourse” level.
The new upper concourse nearly triples the Airport Dining and Retail (ADR) area to 41,000 square
feet and increases lounge space to 45,000 square feet. While the number of widebody gates stays
the same at 12, the project introduces a dual-level boarding system to ease passenger congestion
and improve the overall travel experience especially for international passengers.
In addition to these customer-facing upgrades, the project repurposes the former Federal
Inspection Station (FIS) space and adds new amenities such as upgraded restrooms, nursing
suites, a children’s play area, a sensory room, and an interfaith prayer room.
Behind the scenes, the project also replaces all major mechanical, electrical, and civil systems.
These improvements support long-term airport operations and are part of the facility meeting
LEED Silver sustainability standards.
Schedule
Activity
Commission Authorization Design Start
Commission Final Design Authorization
Construction Authorization 188
th
St Duct Bank
Construction Start 188
th
Street Duct Bank
Commission Construction Authorization SCE
COMMISSION AGENDA – Action Item No. 10a Page 4 of 6
Meeting Date: August 11, 2026
Template revised June 27, 2019 (Diversity in Contracting).
Construction Start SCE
In-use date
Cost Breakdown
This Request
Total Project
Design
$290,000,000
$383,000,000
Construction
$810,000,000
$2,142,000,000
Total
$1,100,000,000
$2,525,000,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Authorization for the Executive Director to increase funding for S Concourse
Evolution and execute one mini maximum allowable construction cost contract.
Cost Implications: $2.5 Billion
Pros:
(1) Smaller initial capital investment
Cons:
(1) Requires several month-to-month Commission requests for authorization.
(2) Has potential to impact critical path to begin construction.
(3) Reduces flexibility to capitalize on cost and/or schedule opportunities.
(4) Funding is directly tied to each individual MACC package.
(5) Increases administrative burden.
This is not the recommended alternative.
Alternative 2 – Authorization for the Executive Director to increase project authorization for S
Concourse Evolution by $1,100,000,000 for a total authorization of $1,400,000,000. This
authorization will provide funding for all activities necessary to advance the program into 2029.
Cost Implications: $2.5 Billion
Pros:
(1) Allows project to maintain critical path, beginning construction in Q4 2026
(2) Decouples the tie to authorize individual MACC packages separately.
(3) Provides flexibility to capitalize on potential cost and/or schedule opportunities.
(4) Authorization allows the team to be efficient with resources without additional
administrative burden and risk of delays.
(5) Significantly reduces the number of Commission actions in support of the same goal.
Cons:
(1) Large capital investment through one primary action.
This is the recommended alternative.
COMMISSION AGENDA – Action Item No. 10a Page 5 of 6
Meeting Date: August 11, 2026
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$1,000,000,000
$0
$1,000,000,000
Previous changes – net
$1,500,000,000
$25,000,000
$1,525,000,000
Revised estimate
$2,500,000,000
$25,000,000
$2,525,000,000
AUTHORIZATION
Previous authorizations
$299,680,000
$320,000
$300,000,000
Current request for authorization
$1,095,000,000
$5,000,000
$1,100,000,000
Total authorizations, including this
request
$1,394,680,000
$5,320,000
$1,400,000,000
Remaining amount to be authorized
$1,105,320,000
$19,680,000
$1,125,000,000
Annual Budget Status and Source of Funds
The South Concourse Evolution project, CIP C801203, was included in the 2026-2030 capital
budget and plan of finance with a budget of $2,500,000,000. The funding sources include 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
Terminal Building
Project cost for analysis
$2.5B
Infrastructure grants
$270,000,000
NPV incremental to Base
$(207.1)M
Non-aero cashflow in 2035
Non-aero cashflow positive
$(26.4)M
In year 2060
CPE Impact in 2035
$5.02
Terminal rental rate incremental
increase in 2035
$101.16
The financial analysis looked at the implications of this project on both the aeronautical and non-
aeronautical businesses. For the aeronautical business, this project will add significant costs
(primarily debt service on the bonds to fund the project) to the airline rate base, resulting in an
increase to the passenger airline cost per enplaned passenger (CPE). The project will also allocate
significant costs to the non-aeronautical business as a result of the space attributable to airport
dining and retail. The table above shows a net present value (NPV) of the incremental net
revenues compared to the costs for the non-aero business. At $2.5 billion, the NPV is negative
$207M. The other measure we look at is non-aeronautical cash flow inclusive of the allocated
debt service. This is important as an indicator of the project’s impact on airport debt service
COMMISSION AGENDA – Action Item No. 10a Page 6 of 6
Meeting Date: August 11, 2026
Template revised June 27, 2019 (Diversity in Contracting).
coverage. The result will be negative cash flow in the first 25 years and going positive in 2060 at
$51.7M after final payment of debt service. Consequently, the project will reduce airport debt
service coverage for many years. The analysis above assumes the project receives $270 million
of grant funding. More grant funding would improve the financial results.
Future Revenues and Expenses (Total cost of ownership)
The South Concourse Evolution program will increase Aviation Maintenance’s overall operating
and maintenance costs across multiple maintenance disciplines due to the increased asset
inventory with the addition of 150,000 square feet of building area.
While the full magnitude of the increase of maintenance cost cannot be determined at this stage,
they can be more accurately assessed once the facility design is complete.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
May 26, 2026 – The Commission authorized pre-construction activities through the end of
2027, advertise and execute a construction contract for 188
th
st Duct Bank Crossing and
advertise and execute any necessary change orders, work authorizations, contract
amendments, and contracts to complete the S Concourse Evolution at SEA within the
approved total program cost.
April 28, 2026 - The Commission was briefed on S Concourse Evolution and informed of an
upcoming funding request to advance design, pre-construction efforts, and upcoming
construction.
October 28, 2025 – The Commission approved construction authorization for the Spot 99
Duct Bank installation.
May 27, 2025 – The Commission authorized an increase to funding, executed a professional
services agreement, advertisement of construction contracts and special testing and
inspection contracts, modification of a United Airlines lease and transferred scope and
budget for the A6 Widebody Remediation.
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.
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.