Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
Concession Program for the New Terminal at
Kansas City International Airport
Bringing the Spirit of Kansas City to the Airport
8/3/2019
The concession program is being planned and developed jointly by KCAD and outside consultants
Pat Klein – Airport Director
Dave Long – Deputy Director
Justin Meyer – Deputy Director
Assisted by
Alan Gluck – ICF, Airport Concession Management Planner
Carrie Stapleton – Phillips-West Communications, President (local outreach)
8/3/20192
Today’s Presentation
Introductions and Welcome
Concession program vision and goals
The Timeline
What are concessions?
Why does the concession program matter?
Certification
How to participate in the concession program
About the big national firms
8/3/20193
KCAD proposes this vision for the airport's concession program
A CONCESSION PROGRAM THAT IS CUSTOMER-CENTRIC,
PROVIDING A SENSE OF PLACE, WHICH ENGAGES USEFUL TECHNOLOGYAND INTEGRATES A TRUE SPIRIT OF KANSAS CITY.
8/3/20194
KCAD used the vision to develop eight goals for concession program
1. Opportunities for real local participation through a variety of means
2. No limits on how local operators participate in the concession program
3. Competition between concession locations
4. Prices for concession products must be reasonable
5. The concession program should be regionally inspired
6. The highest levels of customer service must be offered
7. The concession program should make use of cutting edge, useful technology
8. The concession program should be unique
8/3/20195
Concession Timeline
8/3/20196
KCAD is starting early to allow consultation with the City Council on important issues, time to carefully consider proposals and time for the vendors to properly plan and execute their visions
Allows time to do things right, without time pressure
National Outreach
(2/19)Local
Outreach (7/19)
National/Local Meet & Greet(Late 2019)
Solicitation Issued
(Late 2019 –early 2020)
Selection Process
Completed (12/2020)
Store development,
planning, permitting,
etc.(2021)
Store Construction
(2022)
Terminal Opening
(early 2023)
A couple of notes about today
We are here to talk about the concession program only
The development of the concession program is overseen by the Kansas City Aviation Department (KCAD), a department of the City of Kansas City
Their primary mission is to provide a convenient, well-functioning terminal building that facilitates transportation and connects to the National Airways System
Edgemoor is not involved in this effort
The M/WDBE goal does not apply to the concession solicitation
Because of FAA rules, only ACDBE goals apply to this solicitation
8/3/20197
How local firms can be involved in the New Terminal concession program
Operate concessions individually as a tenant or subtenant
Joint venture With larger operator
Multiple smaller firms working together
Supplier of merchandise “Made of KC”
Suppliers of food products
Supplier of services
Store design
Store construction
8/3/20198
More about this later!
Food Service Concessions
8/3/20199
Retail Concessions
8/3/201910
Services Concessions
8/3/201911
We all know the building will be beautiful
But it is the concessions that make the airport truly “Kansas City”
The concession program will make an important statement by representing the best of the City and the region in brand, product and design
National brands will be encouraged to make their locations unique through design and use of locally produced merchandise and ingredients, as well as local partners and operators
Why is the concession program important?
Airport Concession Disadvantaged Business Enterprise (ACDBE) Program
The ACDBE program
Federally-mandated program
Create opportunities for business owners who have historically been under-represented in airport concession programs
Goals are set by each airport
Based on the number of operators who are “ready, willing, and able” to operate an airport concession
ACDBE goal for this project is 16%
Local M/W/DBE certification does not apply to concession operations, nor does it automatically qualify you as an ACDBE
8/3/201913
Requirements to be certified as an ACDBE
Firm is 51% or more owned and controlled by one or more members of one of the ethnic or other groups described in 49CFR Subpart D §26.67(a) which are presumed (rebuttably) to be socially or economically disadvantaged
Someone is not a member of one of those groups, but who can prove they are socially or economically disadvantaged can also qualify as an ACDBE
Firm owners are U.S. citizens or lawfully admitted permanent residents
Firm does not exceed $52.47 million average annual gross receipts over the preceding three years (some exceptions apply)
Personal net worth of less than $1.32 million
8/3/201914
Airport Concession Disadvantaged Business Enterprise (ACDBE) Certification
Need to be certified in your home state For Missouri, kcmo.gov/humanrelations/mwdbe-slbe-affirmative-action/
Application available online or from us
For Kansas, kansascommerce.gov and search for “ACDBE”
Applications available online or from us
For all other states, please search online for “ACDBE” and your city or state or airport name
If you are not in Kansas or Missouri and cannot find your state’s information, contact Alan Gluck ([email protected]) for assistance
There is no cost to apply for ACDBE certification
Links to all Kansas and Missouri forms can be found on the flykci.com/concessions website
8/3/201915
Operating at an airport has both upsides and downsides
Advantages of operating in an airport
Market generally has above average income
Travelers often have time on their hands
Shopping and dining are entertainment
A proven market that wants to shop/dine
However, there are certainly some disadvantages
Operations up to 18 hours per day, 7 days per week, 365 days per year
Security requirements
Construction of concession units at other airports tend to run between $700 -$1,000 per square foot or more
8/3/201916
Operating a concession as a sub-lessee with a larger national firm
One (or more) large concession firm(s) will be involved in the concession program in one way or another
KCAD has not yet determined how the concession program will be managed
There may be opportunities to team with these firms to operate a concession location
Each vendor will have to negotiate its own deal with the larger firm
This would give an operator the chance to manage his/her own business within the airport, with the support of the firm with which it has a contract
8/3/201917
Joint ventures are a way to pool resources while still having a say in the business
The most common form of joint venture is when a local firm partners with a national firm
Generally, the national firm is the majority partner, although that is subject to your negotiations
Agreement must specifically set out the rights and responsibilities of each joint venturer
Each joint venturer must contribute the same percentage of capital as it has ownership share
Each joint venturer must complete its separate and distinct statement of work with its own employees for it to count as a joint venture
Each joint venturer must have the same level of control over the organization as it has ownership share
Joint venture agreements will be strongly scrutinized if they are submitted to ensure that they follow the Federal Joint Venture guidance
If you don’t really want to be involved in the day-to-day operation, consider licensing your concept
8/3/201918
Joint ventures are a way to pool resources while still having a say in the business
A second form of joint venture would be an association of multiple smaller firms put together for the purpose of obtaining an airport contract
For example, a local developer could team with multiple local food service and retail operators and a local source of capital in a joint venture to be overseen by the developer with management participation by the other members
Would allow multiple firms to participate, bringing the best of many local operators
A very good way to bring sense of place and a true taste of Kansas City to the program
May combine multiple local and national brands
Agreement will have to lay out governance
Strongly urge any companies interested in this to contact a lawyer
8/3/201919
So, I don’t operate a store or restaurant – how do I participate?
Suppliers are an important way of being part of the KCI concession program
Suppliers of goods, supplies and merchandise are very important and can be certified as ACDBE’s
These materials are very important to the airport in establishing the “sense of place”
We will encourage all airport concessionaires to use products grown, processed and produced within the Kansas City region
We intend that this program will be “MADE OF KANSAS CITY”
8/3/201920
There are many opportunities for participation in design and construction
Design opportunities exist for every concession location at the airport KCAD expects that its concessions will be unique and exciting and will tell visitors
that they’re in Kansas City
Besides the products, the design can be a strong deliverer of the Kansas City message
Each location must then produce a complete set of construction drawings Often these drawings will need to be revised after review by the airport’s
permitting/design review committee
There will also be substantial opportunities for firms involved in all of the construction trades, from GC to electricians and plumbers
While these are not ACDBE opportunities, they are important to KCAD and the City
8/3/201921
So… who are the big airport concession companies that you may hear from?
8/3/201922
Before I introduce the firms, however…
We know that national firms have already started doing outreach in the local community. We encourage this but they are here to promote themselves, their business and their vision of what is best
These firms have substantial experience in airports KCAD strongly urges you to have your attorney or advisor closely review any
agreement that may be tendered We will maintain lists of local firms who attend these meetings and will make
them available to national firms upon request and will also appear on our website Contacts for the national concession-focused firms may be found on our website as
well The order in which companies appear on the following pages has no significance
other than alphabetical order Please note that there may be other large companies who are considering
competing for this program. This list is not all-inclusive and as we become aware of other companies, we will add them to the list on our website
8/3/201923
8/3/2019
25 8/3/2019
26 8/3/2019
27
Airport concession developer/ managers which have expressed interest in the New Terminal
8/3/2019
More information
We intend on having a “meet and greet” to introduce national and local firms in Winter 2019
No KCAD employee or consultant can or will get involved in any meetings or negotiations between local and national firms
The only exception is that we will sponsor one or two meet and greet session(s) close to the time that KCAD issues a competitive solicitation later this year
If you have any general questions you might have about airports or the KCAD program, please email [email protected]
KCAD will be providing Councilpersons and local trade and business organizations with updates as there is new information
Useful information will be posted to the KCAD Concession website, www.flykci.com/concessions
8/3/201928
ANY QUESTIONS?If you prefer, we have cards at the front desk. Please write out your question, put your email address on the card, and we will respond
Please also don’t forget to take a handout with you
8/3/201929
Concession Program for the New Terminal at Kansas City International AirportPlease visit our website: https://www.flykci.com/concessions