7a supp

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 mid-
2013

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

CONCESSIONS DEVELOPMENT
OPPORTUNITIES
July 26, 2011 Meeting
Map #1 

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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

UNANTICIPATED DEVELOPMENTS
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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

CONCESSIONS ENTREPRENEUR
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INTERIM LEASING PLAN
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