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PORT OF SEATTLE MEMORANDUM COMMISSION AGENDA Item No. 7a STAFF BRIEFING Date of Meeting March 27, 2012 DATE: March 16, 2012 TO: Tay Yoshitani, Chief Executive Officer FROM: James R. Schone, Director, Aviation Business Development Deanna Zachrisson, Manager, Concessions Business SUBJECT: Staff Briefing about Interim Concessions Leasing, 2012-2014 SYNOPSIS: This briefing will provide an overview of plans for interim leasing within the Airport concessions program during 2012-2014, which precedes the anticipated larger transition of concessions leases in 2015-2017. BACKGROUND: During most of 2011, Commission, Port staff, and concessions program stakeholders have been focused on the issues fundamental to creating the future concessions program, when the first generation of leases beyond the 34-year master concessionaire era expire in 2015-2017. During this time, staff also has completed a request for proposal (RFP) process to select a concessions consultant to assist with the master planning of the future program, as well as lease some vacant or newly developed concessions locations. In conjunction with the approval of the procurement of the concessions planning and leasing consultant in July 2011, staff presented a slate of both food and beverage and retail opportunities foreseen to be appropriate for direct recruitment by the future leasing consultant. Subsequent to this presentation, a number of unforeseen developments took place within the concessions program, which will be summarized in this briefing, along with the proposed resulting changes to the program in 2012. In February 2012, Commission provided its policy direction to staff regarding development of the 2015-2017 program. However, recognizing that there inevitably will be planned and unplanned needs for leasing in the interim period 2012-2014, staff will present a plan for how this leasing may be structured between direct recruitment opportunities and more formalized RFP processes. COMMISSION AGENDA Tay Yoshitani, Chief Executive Officer March 16, 2012 Page 2 of 2 This briefing also will include an overview of the Concessions Entrepreneur Initiative, which encompasses ten retail kiosk locations throughout the Airport intended for lease to small entrepreneur businesses. Development of a program to provide such opportunities also was articulated as direction for staff in the February Commission motion. OTHER DOCUMENTS ASSOCIATED WITH THIS REQUEST: PowerPoint presentation PREVIOUS COMMISSION ACTIONS OR BRIEFINGS: July 26, 2011: The Commission authorized a procurement for concessions planning and leasing services. December 6, 2011: The Commission authorized a lease and concessions agreement for Hudson Marketplace (former Borders concession). December 13, 2011: The Commission received a briefing and accepted public testimony on Aviation Concessions Program Principles and Practices. March 6, 2012: The Commission authorized a lease and concessions agreement for Beecher's Handmade Cheese.
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