COMMISSION AGENDA MEMORANDUM Item No. ACTION ITEM Date of Meeting 10a 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 1 COMMISSION AGENDA - Action Item No. 10a Meeting Date: September 22, 2026 Page 2 of 3 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) (2) Significant capital cost incurred. 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) (2) (3) Provide lounge capacity to serve passenger growth. Provide a significantly higher non-aeronautical revenue growth without additional, unplanned Port investment. 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. Template revised June 27, 2019 (Diversity in Contracting). COMMISSION AGENDA - Action Item No. 10a Meeting Date: September 22, 2026 Page 3 of 3 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. Chase Lounge 16,000 Analysis Period: 2026-2043 Square Footage (approximate) Lease Revenue $ 131,690,000 Sunk Costs: Common Use Construction Costs Allocated Base Building Costs $ $ $ 8,000,000 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 scoringmatrix 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 SharedUse Lounge Project (Club at SEA). Template revised June 27, 2019 (Diversity in Contracting).