CONCESSIONS PROGRAM – DOING BUSINESS AT THE AIRPORT 3/2/17
Airport Contacts
Airport Contacts Brad Wolfe Mike Rawson Raymond Christy Commercial Manager Business Development Mgr. Sr. Planner – ACDBE Coordinator 801-575-2949 801-575-2894 801-575-2945 brad.wolfe@slcgov.com mike.rawson@slcgov.com raymond.christy@slcgov.com
Introductions
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
Understanding the Airport
Passengers (CY2016) 22,397,638 Domestic 759,807 International Total Passengers 23,157,445
Passengers at SLC International
Total Passengers 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Passenger Numbers by Month 2013-16 2016 PAX 2015 PAX 2014 PAX 2013 PAX 2,250,000 2,150,000 2,050,000 1,950,000 Passengers 1,850,000 1,750,000 1,650,000 1,550,000 1,450,000 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Passengers / Sales Comparison 2013-16 2016 PAX 2015 PAX 2014 PAX 2013 PAX 2,250,000 2,150,000 2,050,000 1,950,000 Passengers 1,850,000 1,750,000 1,650,000 1,550,000 1,450,000 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 2016 Gross Sales 2015 Gross Sales 2014 Gross Sales 2013 Gross Sales $9,500,000 $9,000,000 $8,500,000 Concession $8,000,000 $7,500,000 Sales $7,000,000 $6,500,000 $6,000,000 $5,500,000 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16
Timing of Flights
Departures by Hour 50 45 40 35 30 25 20 15 10 5 0 0000 to 0100 to 0200 to 0300 to 0400 to 0500 to 0600 to 0700 to 0800 to 0900 to 1000 to 1100 to 1200 to 1300 to 1400 to 1500 to 1600 to 1700 to 1800 to 1900 to 2000 t0 2100 to 2200 to 2300 to 0059 0159 0259 0359 0459 0559 0659 0759 0859 0959 1059 1159 1259 1359 1499 1599 1659 1759 1859 1959 2059 2159 2259 2359
“Banks” create Airport Contacts customer service and staffing opportunities and challenges.
Sales (CY2016)
Sales
Food & Beverage Annual Sales (CY2016)
Retail Annual Sales (CY2016)
Doing Business at the Airport – What You Need to Know
Hours of Operation
Staffing Requirements – Employee Badging
Staff Transportation and Parking
Staffing Requirements
Staffing Requirements
TSA and Security
Product Deliveries
Product Deliveries
Insurance Requirements
Cash / Payment Management
Lease Terms (To Be Determined)
Liquor Licenses
Other Costs and Factors
Construction Costs
Cat Cora’s Kitchen – Concourse B 1,263 sf $1,196/sf
Market Street Grill – Terminal Two 4,401 sf $568/sf
Kiehl’s – Concourse D 208 sf $508/sf
RMCF – Concourse D 133 sf $810/sf
No Boundaries $335/sf 2,713 sf Terminal Two
In Addition…
One Last Note on Building…
Rent
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%
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
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
Pricing
Tenant Design Standards
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.
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
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
Tenant Design Standards A copy of DRAFT Tenant Design Standards can be found at http://bit.ly/2mfuYa4 A final version will be available when the RFP is published.
ACDBE Program
ACDBE Introduction
Airport Concessions DBE Presentation
Airport Concessions DBE Presentation
Airport Concessions DBE Presentation
Airport Concessions DBE Presentation
Overview of Terminal Redevelopment Program
Terminal Redevelopment Overview
Salt Lake City’s Terminal Redevelopment Program
The need for The New SLC: Aging Facilities Concourse D 31 years Concourse E 19 years Concourse C 37 years Concourse B 54 years Terminal 2 International 37 years Terminal Central Plant 19 years 54 years Parking Garage 24 years Concourse A Terminal 1 54 years 54 years
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
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
SLC Terminal Redevelopment Downtown Overlay
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
Completed by 2023 • South Concourse East
New Facilities New Concessions Opportunities
Timeframes
Timeframes Public Meetings 2017 2018 Request for Proposals 2018 – 2019 Review and Selection 2019 – 2020 Design and Build Fall of 2020 (Phase One) New Facilities Open
Transition
Future/Anticipated Concession Opportunities and Business Arrangements
2020 2023 2020 2023 = Concession Space
Possible Business Arrangements
Packaged Leases vs. Individual Leases
Package of Locations = Concession Space = Packaged Spaces Illustration: Package of 8 store locations under a single lease
Package of Locations Prime Operator • Large firm capable of populating multiple concepts and locations = Concession Space • May create opportunities for small businesses, = Packaged Spaces locals and ACDBE participation through subtenant arrangements, licensing agreements, franchises and/or joint venture partnerships
Direct Lease = Concession Space
Direct Lease Illustration: Direct Lease • Owner/operator is entirely responsible contractually = Directly Leased and financially
Upcoming Opportunities
Upcoming Opportunities
Who Determines What Concepts Go Where?
= Concession Space
Who Determines What Concepts Go Where?
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