CONCESSIONS PROGRAM DOING BUSINESS AT THE AIRPORT 3/2/17

Transcription

1 CONCESSIONS PROGRAM DOING BUSINESS AT THE AIRPORT 3/2/17

2 Airport Contacts

3 Airport Contacts Brad Wolfe Mike Rawson Raymond Christy Commercial Manager Business Development Mgr. Sr. Planner ACDBE Coordinator

4 Introductions

5 Agenda Understanding the Airport Doing Business at the Airport What You Need to Know Tenant Design Standards ACDBE Program Overview of Terminal Redevelopment Program Timeframes Future/Anticipated Concession Opportunities and Business Arrangements The RFP Process Wrap Up - Questions

6 Understanding the Airport

7 Passengers (CY2016) Domestic 22,397,638 International 759,807 Total Passengers 23,157,445

8 Passengers at SLC International

9 25,000,000 Total Passengers 20,000,000 15,000,000 10,000,000 5,000,

10 Passenger Numbers by Month Passengers 2,250,000 2,150,000 2,050,000 1,950,000 1,850,000 1,750,000 1,650,000 1,550,000 1,450, PAX 2015 PAX 2014 PAX 2013 PAX Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

11 Passengers / Sales Comparison Passengers 2,250,000 2,150,000 2,050,000 1,950,000 1,850,000 1,750,000 1,650,000 1,550,000 1,450, PAX 2015 PAX 2014 PAX 2013 PAX Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Concession Sales $9,500,000 $9,000,000 $8,500,000 $8,000,000 $7,500,000 $7,000,000 $6,500,000 $6,000,000 $5,500, Gross Sales 2015 Gross Sales 2014 Gross Sales 2013 Gross Sales Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16

12 Timing of Flights

13

14 Departures by Hour to to to to to to to to to to to to to to to to to to to to t to to to 2359

15 Airport Contacts Banks create customer service and staffing opportunities and challenges.

16 Sales (CY2016)

17 Sales

18 Food & Beverage Annual Sales (CY2016)

19 Retail Annual Sales (CY2016)

20 Doing Business at the Airport What You Need to Know

21 Hours of Operation

22 Staffing Requirements Employee Badging

23 Staff Transportation and Parking

24 Staffing Requirements

25 Staffing Requirements

26 TSA and Security

27 Product Deliveries

28

29 Product Deliveries

30 Insurance Requirements

31 Cash / Payment Management

32 Lease Terms (To Be Determined)

33 Liquor Licenses

34 Other Costs and Factors

35 Construction Costs

36 Cat Cora s Kitchen Concourse B 1,263 sf $1,196/sf

37 Market Street Grill Terminal Two 4,401 sf $568/sf

38 Kiehl s Concourse D 208 sf $508/sf

39 RMCF Concourse D 133 sf $810/sf

40 No Boundaries Terminal Two 2,713 sf $335/sf

41 In Addition

42 One Last Note on Building

43 Rent

44 Rent Illustration For example: 1,200 square foot retail concept Minimum Annual Guarantee (1 st year) of $200,000 Percentage of Gross Sales is 14%

45 Rent Illustration For example: Gross Sales for the Year is $2,000,000 14% of $2,000,000 is $280,000 $280,000 is greater than the MAG of $200,000 Rent for that year would be $280,000

46 Rent Illustration For example: Gross Sales for the Year is $1,000,000 14% of $1,000,000 is $140,000 $140,000 is less than the MAG of $200,000 Rent for that year would be $200,000

47 Pricing

48 Tenant Design Standards

49 Tenant Design Standards The Salt Lake City Department of Airports and its Tenants are responsible for the first impression of most visitors. This first glimpse of the Intermountain Area and Salt Lake City is an opportunity to showcase local and regional themes, natural features, resources and history through high quality, durable, and sustainable products and materials. The Tenant Design Standards (TDS) have been developed to assist tenants by providing a set of minimum design guidelines to ensure that each project is attractive, well designed, and consistent with the overall design goals of the Airport. Tenants and their design teams must become familiar with the intent, scope and detailed requirements of the Airport Tenant Design Standards and Design Criteria before the design process can begin.

50 Tenant Design Standards The Purpose of the Tenant Design Standards is to: Enhance the passenger experience while ensuring a safe and convenient facility is available for all users Maintain the overall design characteristics and goals of the Airport Ensure that a Tenant s facility design takes advantage of every available option to optimize the potential of the space Evoke a sense of personality along with a positive image that captures the customer s attention Promote a unified environment in which tenants can incorporate consistent, creative and harmonious design elements while maintaining their own identity Encourage site design that compliments the surrounding area and creates a positive passenger experience

51 Tenant Design Standards Except for routine maintenance on tenant installed equipment, Airport approval is required any time a tenant desires to perform interior or exterior modifications and/or construction on Airport property. Preliminary Design Review Design Development Review (30% Submittal) Design Review Committee (DRC) Review Construction Document Review (100% Submittal) Tenant Improvement Application Salt Lake City Building Services Permitting Process

52 Tenant Design Standards A copy of DRAFT Tenant Design Standards can be found at A final version will be available when the RFP is published.

53 ACDBE Program

54 ACDBE Introduction

55 Airport Concessions DBE Presentation

56 Airport Concessions DBE Presentation

57 Airport Concessions DBE Presentation

58 Airport Concessions DBE Presentation

59 Overview of Terminal Redevelopment Program

60 Terminal Redevelopment Overview

61 Salt Lake City s Terminal Redevelopment Program

62 The need for The New SLC: Aging Facilities Concourse D 31 years Concourse E 19 years Concourse C 37 years Concourse B 54 years International Terminal 19 years Terminal 2 37 years Central Plant 54 years Parking Garage 24 years Terminal 1 54 years Concourse A 54 years

63 Terminal Redevelopment Program Airfield Challenges Operational Constraints: Congestion in pockets between concourses Lack of gate flexibility (only 55 gates with jet bridges) No loading bridges in Concourse E Limited international gate capacity (3 gates) Fueling System misaligned

64 Terminal Redevelopment Program Service Level Challenges Operational Constraints: Undersized hold rooms Inadequate restroom capacity Undersized concessions Limited baggage claim capacity Meeter Greeter congestion TSA screening checkpoint congestion

65 SLC Terminal Redevelopment Downtown Overlay

66 Completed by 2020 Terminal / South Concourse West, Gateway Center, Parking Garage Central Utility Plant Elevated Roadway and TRAX realignment First Phase of the New North Concourse

67 Completed by 2023 South Concourse East

68 New Facilities New Concessions Opportunities

69 Timeframes

70 Timeframes Public Meetings 2017 Request for Proposals 2018 Review and Selection Design and Build New Facilities Open Fall of 2020 (Phase One)

71 Transition

72 Future/Anticipated Concession Opportunities and Business Arrangements

73 = Concession Space

74 Possible Business Arrangements

75 Packaged Leases vs. Individual Leases

76 Package of Locations = Concession Space = Packaged Spaces Illustration: Package of 8 store locations under a single lease

77 Package of Locations Prime Operator Large firm capable of populating multiple concepts and locations May create opportunities for small businesses, locals and ACDBE participation through subtenant arrangements, licensing agreements, franchises and/or joint venture partnerships = Concession Space = Packaged Spaces

78 Direct Lease = Concession Space

79 Direct Lease Illustration: Direct Lease Owner/operator is entirely responsible contractually and financially = Directly Leased

80 Upcoming Opportunities

81 Upcoming Opportunities

82 Who Determines What Concepts Go Where?

83 = Concession Space

84 Who Determines What Concepts Go Where?

85 The Request for Proposal (RFP) Process

86 Request for Proposals (RFP)

87 Request for Proposals (RFP)

88 Request for Proposals (RFP)

89 Request for Proposals (RFP)

90 Wrap Up Questions

91 Conclusion