1
COMMISSION
AGENDA MEMORANDUM
Item No.
10a
ACTION ITEM
Date of Meeting
September 22, 2026
DATE: August 20, 2026
TO: Stephen P. Metruck, Executive Director
FROM: Jeffrey Wolf, Director, Aviation Commercial Management
Khalia Moore-Parkes, Assistant Director, Airport Dining and Retail
Scott Van Horn, Manager of Business Development, Airport Dining and Retail
SUBJECT: Execution of a Lease and Concession Agreement between the Port of Seattle and
AD Partnership, LLC to operate a Non-Aeronautical Financial Institution (Credit Card)
Lounge at Seattle-Tacoma International Airport
ACTION REQUESTED
Request Commission authorization for the Executive Director or his designee to execute a Lease
and Concession Agreement for a Non-Aeronautical Financial Institution (Credit Card) Lounge on
A Concourse with AD Partnership, LLC, operating a Chase Sapphire Lounge.
JUSTIFICATION
The Airport Dining and Retail (ADR) team issued Request for Information 26-7 (RFI 26-7) for a
new non-aeronautical alliance or financial institution lounge located at the end of A Concourse.
Based on the submission received, AD Partnership, LLC (Selected Operator) was selected to
operate a Chase Sapphire Lounge.
Staff requests authorization for the Executive Director or his designee to execute a Lease and
Concession Agreement with the following terms:
• Fifteen (15) years lease term
• Approximately 16,000 square feet (SF)
• Projected Revenue to the Port: Five Hundred Dollars and 00/100 ($500.00) per square
foot per year.
o This rate will increase on the sixth (6th) and eleventh (11th) year by ten percent
(10%).
o Estimated annual revenue to the Port will be approximately $7.9 million per year.
• Security Deposit: $4,000,000
COMMISSION AGENDA – Action Item No. 10a Page 2 of 3
Meeting Date: September 22, 2026
Template revised June 27, 2019 (Diversity in Contracting).
This location on A Concourse was originally planned as an upgraded, Port-owned common use
lounge, which would require significant capital investment. However, after additional analysis
and review of the lounge program, it was determined that utilizing this space as a non-aero
financial institution or airline alliance lounge provided increased financial returns and lower
capital burdens for the Port. An alternative location for the current common-use lounge was
identified, which required lower investment by the Port and further improves the Port’s overall
financial performance.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1- Proceed with the previously approved project and build out the full expanded Club
SEA footprint provided by the Concourse A Building Expansion for Lounges project in this
location.
Cost Implications: Incremental $24,360,000 plus Port Sunk Costs of $25.9M (allocated base
building costs)
Pros:
(1) Improve the Port’s level of service supporting international operations on Concourse A.
Cons:
(1) Significant capital cost incurred.
(2) Breakeven point for investment is expected to be 11 years.
This is not the Recommended Alternative.
Alternative 2- Proceed with the request to execute the Lease and Concessions Agreement with
AD Partnership, LLC for a Chase Sapphire Lounge in the A Concourse location.
Cost Implications: Port Sunk Costs: $25.9M (allocated base building costs) plus previously
incurred $8M attributable to common-use lounge design efforts already undertaken.
Pros:
(1) Provide lounge capacity to serve passenger growth.
(2) Provide a significantly higher non-aeronautical revenue growth without additional,
unplanned Port investment.
(3) Decreases in future capital investment and expenses for the Port, which would be
incurred with the build-out and operation of the space as previously approved.
Cons:
(1) The new location for The Club at SEA may require some upgrades and with a set turnover
date of the current The Club at SEA space for the Chase Sapphire Lounge, there may be a
short period of time that no common-use lounge services will be available on Concourse
A.
This is the Recommended Alternative.
COMMISSION AGENDA – Action Item No. 10a Page 3 of 3
Meeting Date: September 22, 2026
Template revised June 27, 2019 (Diversity in Contracting).
FINANCIAL IMPLICATIONS
This authorization will create a new non-aeronautical revenue stream of approximately
$7,900,000 annually to the Port. No additional Port investment will be required.
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
April 8, 2025 – The Commission authorized $24,360,000 to complete the A Concourse Shared-
Use Lounge Project (Club at SEA).
Analysis Period: 2026-2043 Chase Lounge
Square Footage (approximate) 16,000
Lease Revenue 131,690,000$
Sunk Costs: -$
Common Use Construction Costs 8,000,000$
Allocated Base Building Costs 25,910,000$
Net Income 97,780,000$
Non-Aero Net Present Value 36,440,000$
Payback 4
NPV assumes 7.1% discount rate per Port risk scoring matrix
