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​Public Notice

Passenger Facility Charge (PFC) Application 17-08-C-00-SEA

March 7, 2017

Notice of Intent to File New Passenger Facility Charges (“PFC”) at Seattle-Tacoma International Airport (SEA)

The Port is posting this public notice as part of the PFC application process under 14 CFR § 158.24. In accordance with Federal Aviation Regulation (FAR), 14 CFR Part 158.23, the Port of Seattle is obligated to inform in writing, the air carriers operating at Seattle-Tacoma International Airport of its intent to submit an application to the FAA for authority to impose a PFC prior to the submission of the application to the FAA. This correspondence will fulfill this requirement, and the outline will follow Part 158.23(a) and (b).158.23(a)(1). The PFC Program, allowing an airport to collect $4.50 from each qualified passenger for approved airport projects is allowed under Federal Aviation Regulation (FAR), Title 14 Code of Federal Regulations, Part 158. Part 158 is available and may be viewed on the FAA’s website (www.faa.gov).

The Air Carrier Consultation Meeting was held on March 2, 2017. Written public comments will be accepted until close of business, April 7, 2017. Comments should be sent to AV Finance Manager, Port of Seattle, PO Box 68727, Seattle, WA 98168.

As part of this process, the Port is providing the public with the following information regarding proposed PFC application:

Section 158.24(b)(i - ii). Description of projects

North Satellite Renovation and Expansion

The Port is embarking upon a comprehensive renovation and expansion of the NSAT terminal building, as well as all associated and necessary apron and airfield expansion and reconfiguration. For the purpose of PFC Application 17-08-C-00-SEA, the NSAT Renovation and Expansion is detailed in three separate components. All components include associated design, planning, program management, construction management, general conditions, administration, and other associated soft costs. Portions of the project are intended to be financed with revenue bonds. The PFC application will include bond financing and interest costs so that PFCs can be used to pay eligible debt service.

a)  North Satellite Building

The existing NSAT terminal building at Sea-Tac will be completely renovated and expanded to provide improved customer amenities, operations infrastructure, and additional contact gates. The 45-year-old NSAT received only limited upgrades during its lifetime and is in need of modernization, renewal, and replacement of many of its basic systems. This modernization will improve the travel experience from airport to flight departure, as well as the working environment for employees. The NSAT must be expanded to meet existing and forecasted demand, long-term energy savings, and operational efficiencies. This investment will include facility modernization, seismic upgrades, enhanced traveler amenities, new gates, and a roof-top lounge for Alaska Airlines Board Room guests. The existing terminal provides 12 contact gate positions and 17 aircraft positions. The renovated and expanded facility will increase the contact positions to a total of 20 gates, add an additional 268,000 square feet of new terminal area, and completely renovate the existing 160,000 square feet building. Once completed the total terminal building area will be approximately 428,000 square feet. Construction will occur in phases to reduce and mitigate impacts to airport and airline operations.

PFC level: $4.50 per eligible enplaned passenger

Estimated PFC collection amount: $599,000,000

b)  North Satellite Apron

The NSAT renovation and expansion is needed to modernize the terminal building and meet current and forecasted gate demand for air carrier operations at Sea-Tac. This project component includes the design and construction of the apron area surrounding the expanded NSAT terminal building.

  • Accommodate Port-proposed dual and tri-taxi lane alignments in NSAT apron area
  • Optimize aircraft parking layout and re-stripe gates to support NSAT expansion
  • Adjust/extend hydrant fueling to support NSAT expansion
  • Revise apron paving and adjust/extend site utilities to support NSAT expansion
  • Provide perimeter vehicle service road striping with spur connection to NSAT loading dock

PFC level: $4.50 per eligible enplaned passenger

Estimated PFC collection amount: $121,000,000

c)  Concourse C Satellite Transit System Renovations

The Satellite Transit System (STS) station at Concourse C and the vertical circulation that moves passengers between the station and concourse levels will be renovated to improve passenger circulation between the expanded NSAT and Concourse C. As described under the NSAT building project, the NSAT is being expanded from 12 to 20 gates. Increased activity in the NSAT will place additional demand on the Concourse C STS. Both NSAT and Concourse C gates are utilized by to Alaska Air Group, and improvements in way finding and vertical circulation between the STS and concourse levels are needed at these two concourse facilities. The improvement of the STS level at the NSAT is included in the NSAT expansion, while renovation of the Concourse C STS level is a separate scope component of the overall NSAT project.  Improvements include way finding, interior finishes, lighting, visual connections between vertical levels, a new elevator, new escalators, and a new escalator core. The PFC project includes the replacement of over 45-year-old elevators and escalators in the Concourse C STS station.

PFC level: $3.00 per eligible enplaned passenger

Estimated PFC collection amount: $7,600,000

International Arrivals Facility

Sea-Tac’s current Federal Inspection Service (FIS) facility in the South Satellite (SSAT), including the Federal Inspection Service (FIS) facilities, opened in 1973 and has seen only minimal overall facility changes since that time.  A minor expansion was done in the mid-1980s that increased capacity to 1,200 arriving passengers per hour. Although the IAF has not grown significantly over the years, Sea-Tac’s international air service has grown significantly and continues to grow at a rapid pace, especially during the mid-day peak. The current FIS has exceeded its capacity to efficiently process travelers. According to U.S. Customs data for 2016, during the hours between 11am and 2pm, the demand on the FIS is routinely 1,300 to 1,400 passengers per hour, with a maximum demand of 2,200 passengers per hour.  During these peak demand periods, passenger wait times routinely reach 2 hours.  This has a detrimental effect on connect times between international and domestic flights, delays arriving international flights, and places Sea-Tac at a competitive disadvantage to other West Coast airports.

The Port  – working in conjunction with the airlines serving Sea-Tac, Customs and Border Patrol (CBP), and Transportation Security Administration (TSA) – has determined that a new IAF is required to accommodate current and projected passenger forecasts, including the necessary space for CBP and associated federal agency processing functions. It has been determined that construction must be completed as soon as possible to mitigate the detrimental long-term effects of the current undersized IAF.

The IAF project includes associated design, planning, program management, construction management, general conditions, administration, and other soft costs. Portions of the new IAF are intended to be financed with revenue bonds, and the PFC application will include bond financing and interest costs.

The new IAF project has three primary components:

  • IAF Building:  A new 404,000 gross square foot IAF building will be located in the area between existing Concourse A and the public roadway systemA new 404,000 gross square foot IAF building will be located in the area between existing Concourse A and the public roadway system.
  • Pedestrian Walkway: A 35,000 square foot sterile pedestrian walkway will be constructed between the existing SSAT and the new IAF building to serve arriving international passengers. The existing sterile corridor in the SSAT will connect to the walkway to transfer arriving international passengers to the new IAF.  As part of the walkway construction, gates S5 and S6, which previously did not have access to the sterile corridor in the SSAT, will be added to the sterile corridor.  
  • Sterile Corridor: A new 72,000 square foot sterile corridor will be constructed on the western face of Concourse A to serve gates A3 through A13. (Gate A5 will not have access to the sterile corridor.)

PFC level: $4.50 per eligible enplaned passenger

Estimated PFC collection amount: $945,144,000

Section 158.24(b)(iii - vii). The PFC level, charge effective date, charge expiration date, and total PFC revenue

PFC level:  $4.50 per eligible enplaned passenger

Estimated charge effective date for the application:  November 1, 2028

Estimated charge expiration date for the application:  January 1, 2043

Estimated total PFC revenue to be collected under application:  $1,672,744.00

Section 158.23(a)(3) Class of Carrier Not Required to Collect the PFC

The Port does not request that any class of carrier be excluded from the requirement to collect PFCs.

Section 158.24(b)(viii) Port point of contact

Any comments should be sent to Hanh Nguyen, The Port of Seattle, PO Box 68727, Seattle, WA 98168. If there are any questions regarding this proposed PFC application, Ms. Nguyen can also be reached at 206.728.4042 or at nguyen.h2@portseattle.org.