Item Number:
7a_Supp____
Date of Meeting: 03/27/2012

Interim Concessions Leasing
2012-2014

Presentation Overview
• Recent History
• Opportunities: 2012-2014
• Proposed Approach

History: Preparation for 2015-17 Transition
• 75 units' leases terminate in 2015-2017
• Stakeholder process gathered input on values and
strategies appropriate for transition
• Staff presentation on December 13, 2011
• Commission provided policy direction on Feb. 14, 2012
• Master planning for transition underway
• Will seek further guidance from Commission in mid2013

History: Leasing Agent Contract
• Approved on July 26, 2011
• Included single unit food & retail opportunities for
"direct recruitment"
• Intended for local, small and/or ACDBE operators
• Included planning work for program transition
• AirProjects/Real Retail selected by RFP and now
under contract

Map #1

History: Expect the Unexpected
• Borders Liquidation (CT-10) - August 9, 2011
• Hudson 'Letter of Intent' (CT-10) - Sept. 21, 2011
• Beecher's Initial Inquiry - April, 2008
• Regus Notification to Vacate (CC-09) - August, 2011
• Beecher's 'Letter of intent' (CC-09) - October 20, 2011
• McDonald's 'Letter of Intent' (CB-07) - Oct. 14, 2011

Leasing Strategy Drivers
• Response to single-unit event or opportunity
• Unit specific characteristics or issues
• Specific vs. generic passenger demand or need
• Maximization of revenue
• Urgency of passenger need/capacity problem

Tailored Selection Method
Request for Proposals
• Advantageous when known competition exits
• Cost-effective for multiple unit packages
• Meets more general category needs (e.g. duty free)
• Proposals garner broad variety of concepts
Direct recruitment/negotiation
• Lowers barriers to non-traditional and 'street' operators
• Units open much faster: less process, more revenue, jobs
• Targets specific passenger need directly in an otherwise
complete program

Map #2

New Leasing Opportunities Created
• Hudson Marketplace (CT-10) - December 6, 2011
• Beecher's Handmade Cheese (CC-09) - March 6, 2012
• McDonald's (local franchise) (CB-07) - pending
• Re-Lease of Discover Puget Sound (CT-06) - pending
• Re-Lease of Hudson News (CB-06) - pending

Map #4

Interim Leasing Plan 2012-2014
• Complete RFP selection of new duty free operator
• Create a new food & beverage RFP opportunity
• Launch Concessions Entrepreneur Initiative (kiosks
for ACDBE or small retailers)
• Lease remaining identified units with leasing agent

Duty Free Request for Proposals
• Currently operated by Hudson Retail on short-term
agreement
• RFP withdrawn in 2010
• Realignment drives need for new locations
• Construction of new duty free shell this fall
• Must execute lease with new operator by mid-August

Map #5 duty free

Food & Beverage Request for Proposals
• RFP targeted to multi-unit operator
• South Satellite full-service restaurant (SS-07)
• Arrivals Hall full-service restaurant (AH-01)
• Concourse A quick-serve restaurant (CA-15A)

Map # 6 Food

Concessions Entrepreneur Initiative
• Ten kiosk locations airport-wide
• Infrastructure installed in 2009-2010
• Development of selection criteria in progress
• Intended for local, small and/or ACDBE retailers
• Established ACDBEs as mentors