2015 CONCESSIONS RFP. Metropolitan Airports Commission. Presenters Eric Johnson & Elizabeth Grzechowiak
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1 2015 CONCESSIONS RFP Metropolitan Airports Commission Presenters Eric Johnson & Elizabeth Grzechowiak
2 2014 COMMISSION PRESENTATIONS SEPTEMBER Life Cycle of an RFP Blue Ribbon Panel guidelines Evaluation process and scoring Role of the Commission during the bid process OCTOBER Master Concessionaire (Operator) vs. Developer model Street Pricing Concessions Lease Batching Lease Terms NOVEMBER ACDBE Participation Labor DECEMBER Staff recommendations to Commission for RFP 2
3 AGENDA MSP concessions sales and proposed Phase I concessions area December Commission authorized terms: Concessionaire (Operator) Model Direct Lease Concessions Batching Street Pricing up to 10% Lease Terms ACDBE Participation Staff recommendations: Rent and other Charges Evaluation Criteria Hours of Operation RFP Review Team Questions January M&O: MAC Concessions RFP 3
4 $ Millions CONCESSIONS SALES $180 $160 $140 $120 $100 $80 $60 $40 $20 $ Sales $141.2 $144.8 $151.1 $157.2 $168.4 January M&O: MAC Concessions RFP 4
5 $ Millions CONCESSIONS REVENUE TO MAC (RENT) $25 $20 $15 $10 $5 $ Rent $21.1 $21.0 $21.8 $22.4 $23.2 January M&O: MAC Concessions RFP 5
6 MSP TOTAL CONCESSIONS AREA Total Concessions 168,851 Sq Ft Retail 31,212 Food & Beverage 121,322 Convenience (News) 16,317 6
7 CURRENT CONCESSIONS IN PHASES I & II Total Concession Area 2015 & 2017 RFP's 125,543 Sq Ft Retail 29, Retail Units Food & Beverage 80, F&B Units Convenience (News) 16, News Units 7
8 CONCESSIONS OPPORTUNITIES PHASE I Total Concessions area Available in Phase 1 72,000 Total sf F&B 36,000 21% News 12,000 7% Retail 24,000 14% January M&O: MAC Concessions RFP 8
9 DECEMBER COMMISSION AUTHORIZATION Master Concessionaire (Operator) model Street Pricing + 10% Concessions lease batching model Lease Terms of 8-10 years based on concession type Proposers required to share employee transition, recruitment, hiring of existing employees, compensation, benefits and incentives ACDBE Participation goal of 16% January M&O: MAC Concessions RFP 9
10 RENT TERMS Rent Structure: MAC staff assign Minimum Annual Guarantee (MAG) for each batch *Staff to present MAG assignments at the January Commission meeting Proposers propose percentage of gross revenues Percent Rent may vary by location within a batch Increase over time Increase at gross revenue break points Rent obligation greater of percent rent or MAG Other Charges: Consortium fee Utility fee January M&O: MAC Concessions RFP 10
11 EVALUATION CRITERIA Financial Plan 300 Points Merchandising, Concept, & Design Plan 400 Points DBE Plan 100 Points Management & Operations Plan 400 Points Total Possible 1,200 Points Interviews may be requested for some or all proposals Review team members may revise their scoring based on presentations January M&O: MAC Concessions RFP 11
12 HOURS OF OPERATION: 6 AM 9 PM DAILY 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, Sunday Monday Tuesday Wednesday Thursday Friday Saturday Minneapolis-St. Paul International Airport Concessions Leasing Seminar 11/17/
13 REVIEW TEAM: SCORING MEMBERS Tammy Mencel Commissioner Eric Johnson Director, Commercial Management & Airline Affairs Liz Grzechowiak Assistant Director Concessions & Business Development Phil Burke Director, MSP Airport Operations Alan Howell Senior Airport Architect Ed Podnieks Manager, Financial Analysis & Business Planning Matt Grimm Manager, Concessions & Business Development (Food & Beverage batches only) Isabella Rhawie Manager, Concessions & Business Development (Retail and News batches only) January M&O: MAC Concessions RFP 13
14 REVIEW TEAM: NON-SCORING ADVISORS The non-scoring advisors for the Review Team are: Mike Batt Financial Analyst Cameron Boyd Senior Attorney Debra Johnson Contract & EEO Specialist in the MAC s Office of Diversity & Business Development Department Kate Webb Manager, Contracts and Proposals The non-scoring outside specialists on the Review Team are: Cliff Dunham Principle, Alliiance Architect Hank Moody General Manager Corporate Real Estate, Delta Air Lines January M&O: MAC Concessions RFP 14
15 QUESTIONS? January M&O: MAC Concessions RFP 15
2015 CONCESSIONS RFP. Metropolitan Airports Commission. Presenters Eric Johnson & Elizabeth Grzechowiak
2015 CONCESSIONS RFP Metropolitan Airports Commission Presenters Eric Johnson & Elizabeth Grzechowiak 2014 COMMISSION PRESENTATIONS SEPTEMBER Life Cycle of an RFP Blue Ribbon Panel guidelines Evaluation
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