Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
10b
ACTION ITEM
Date of Meeting
August 11, 2026
DATE : August 3, 2026
TO: Stephen P. Metruck, Executive Director
FROM: Jeff Wolf, Director, Aviation Commercial Management
Eileen Francisco, Director, Aviation Project Management Group
SUBJECT: Rental Car Facility (RCF) Customer Service Building Re-Demising Project Funding
(#C801209)
Amount of this request:
$17,900,000
Total estimated project cost:
$19,700,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to take all steps necessary to
complete the RCF Customer Service Building Re-Demising project at Seattle-Tacoma
International Airport (SEA). The total amount requested for authorization is $17,900,000 for a
total authorized amount of $19,700,000.
EXECUTIVE SUMMARY
The RCF began operations in May 2012 and the original ten (10)-year concession agreement, a
component of the lease, expires in May 2027, as an additional five (5) years was approved by
Commission in 2021 as part of Covid relief efforts. This project supports the rebidding of the
concession agreement through the reallocation and building of spaces for tenants, securing a
vital source of non-aeronautical revenues for SEA. The project will also renovate the existing
heavily used restrooms in the Customer Service Building, and replace the existing car wash
equipment that is at the end of its useful life.
JUSTIFICATION
This project supports the Century Agenda strategic goal to advance this region as a leading
tourism destination and business gateway by 1) continuously improving the operational
efficiency and customer experience at SEA, and 2) by meeting the region's air transportation
needs by delivering vital facilities and infrastructure in a sustainable and cost-effective
manner. The RCF is a major facility and is the primary operating location for most rental car
providers at SEA. Rebidding the tenant areas, which is a requirement of the agreement, allows
for improvements to the operational efficiency of the facility through consideration of the
COMMISSION AGENDA – Action Item No. 10b Page 2 of 5
Meeting Date: August 11, 2026
Template revised June 27, 2019 (Diversity in Contracting).
changes in market positions of the rental car companies over the last 15 years. The renovation
of the restrooms will improve customer and worker experience. Replacing the end-of-life car
wash equipment will ensure the continuity of rental car operations.
In 2025, approximately 5.2 million passengers utilized the RCF and generated $45 million in
concession/land rent revenues to the Port, and $48 million in customer facility charge (CFC)
revenues. CFCs are fees paid by customers and remitted to the Port as part of each rental car
transaction and may only be used for the repayment of the debt used to construct the RCF, as
well as certain operating expenses, such as the busing system to and from the airport terminal,
and capital projects at the RCF. This proposed project will be primarily funded by the CFC fund.
Diversity in Contracting
The design of this project will utilize a project specific design contract that has an established
women and minority business enterprise (WMBE) goal of 26%. The project team will work with
the Diversity in Contracting department to establish additional WMBE goals within the
construction phase of the project.
DETAILS
The RCF supports the vast majority of rental car operations at SEA (note: some smaller companies
may operate “off-airport” and don’t utilize the facility except for busing operations) and opened
in May 2012. The Port and the rental car industry have a thirty-year lease with an accompanying
15-year concession agreement (originally the concession agreement was ten years, but as noted
above, was extended to 15 years). The existing concession agreement expires in May 2027 and
defines the blocks of operating space for each rental car tenant utilizing the facility.
This project supports the rebidding of the RCF concession agreement that will determine the
blocks of space for each tenant for the next 15 years. This project will modify blocks within the
Customer Service Building located on the fifth floor of the facility, which serves as the primary
customer-facing operating areas for rental car companies. Tenants are responsible for their own
tenant improvements, while the Port is responsible for improvements to the base building.
Scope of Work
The scope of work includes interior walls/finishes, HVAC, lighting, restrooms, utilities, signage,
and car wash equipment.
The project is being delivered through two packages of work to meet schedule requirements. The
first package will support the construction of the tenant blocks of space, and the associated
wayfinding signage improvements as the location of the tenant lease areas will change. The first
package will also include the construction of a new break room and flex space for transit
operations and will need to be ready for construction when the new concession agreement
begins in June 2027. The second package will include the restroom renovation and replacement
COMMISSION AGENDA – Action Item No. 10b Page 3 of 5
Meeting Date: August 11, 2026
Template revised June 27, 2019 (Diversity in Contracting).
of the car wash equipment. This work will be phased (one restroom closed at a time), and with
no construction impacts occurring during the peak summer months.
Schedule
Activity
Construction start
In-use date
Cost Breakdown
This Request
Total Project
Design
$3,600,000
$5,400,000
Construction
$14,300,000
$14,300,000
Total
$17,900,000
$19,700,000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do not complete the improvements
Cost Implications: $0
Pros:
(1) Does not require capital investment from the Port
Cons:
(1) The Port would not be in compliance with the rental car lease agreement putting at risk
SEA’s rental car concession revenues
(2) Tenant lease space would not be adjusted to account for market changes from the past
15 years and improving operational efficiency
(3) The car wash equipment would ultimately fail and will not support the continuity of
rental car operations
(4) Restrooms would continue to be heavily worn providing a lower level of customer
service and requiring additional maintenance support
This is not the recommended alternative.
Alternative 2 – Do not include the renovation of the public restrooms
Cost Implications: $17,700,000
Pros:
(1) Reduces the capital investment from the Port
(2) The Port would be in compliance with the rental car lease agreement
(3) Tenant space would be adjusted to account for market changes from the past 15 years
and improving operational efficiency
(4) The car wash equipment would be replaced ensuring the continuity of rental car
operations
COMMISSION AGENDA – Action Item No. 10b Page 4 of 5
Meeting Date: August 11, 2026
Template revised June 27, 2019 (Diversity in Contracting).
Cons:
(1) Restrooms will continue to be heavily worn providing a lower level of customer service
(2) The deferral of the restroom renovation represents a greater overall future capital
investment by the Port
This is not the recommended alternative.
Alternative 3 – Proceed with the full scope of the project
Cost Implications: $19,700,000
Pros:
(1) The Port would be in compliance with the rental car lease agreement
(2) Tenant space would be adjusted to account for market changes from the past 15 years
and improving operational efficiency
(3) The car wash equipment would be replaced ensuring the continuity of rental car
operations
(4) The restrooms would be renovated, improving customer service
Cons:
(1) Requires the most capital investment by the Port
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Original estimate
$10,540,000
$0
$10,540,000
Previous changes – net
$3,015,410
$0
$3,015,410
Current change
$5,764,590
$380,000
$6,144,590
Revised estimate
$19,320,000
$380,000
$19,700,000
AUTHORIZATION
Previous authorizations
$2,000,000
$0
$2,000,000
Current request for authorization
$17,320,000
$380,000
$17,700,000
Total authorizations, including this request
$19,320,000
$380,000
$19,700,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project #C801209 was included in the 2026-2030 capital budget and plan of finance with a
total budget of $13,555,410. The budget of $5,764,590 will be transferred from the Non-
Aeronautical Allowance CIP C800754 resulting in no net change to the Airport capital budget. This
project will be primarily funded by CFC revenues.
COMMISSION AGENDA – Action Item No. 10b Page 5 of 5
Meeting Date: August 11, 2026
Template revised June 27, 2019 (Diversity in Contracting).
Financial Analysis and Summary
Project cost for analysis
$19,700,000
Business Unit (BU)
Rental Cars
Effect on business performance
(NOI after depreciation)
NOI after depreciation will decrease with the additional
capital costs associated with the project. However, the
project ensures the continuity of a vital source of
substantial non-aeronautical revenues to the Port.
IRR/NPV (if relevant)
N/A
CPE Impact
N/A
Future Revenues and Expenses (Total cost of ownership)
Per the terms of the lease agreement the operation and maintenance costs for the RCF are borne
by the rental car industry. The Port is responsible for re-investment into the RCF as facilities and
infrastructure age and require replacement. Completing the project improvements and
supporting the new concession agreement protects SEA’s rental car concession revenues.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
January 27, 2026 – Commission was briefed on the Rental Car Program.
September 24, 2024 – Commission authorized the execution of a project specific design
services contract and preliminary project work.