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Portland International Airport New Concession Leases

& Food Cart Program

Dave Pfeiffer Senior Manager – Concession Development

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Presentation Overview • Proposal Submissions Received

• Selection Committee Review

• Selected Proposers

• Existing Concessionaire Employee Impact

• Lease Terms

• Next Steps

• Oregon Market Food Cart Pod

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Proposals Received • 34 Proposals for 11 Locations

– Mix of Local, Regional & National Businesses

– Existing and New Concessionaires

GUIDING PRINCIPLES

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Selection Committee Review • 7 Committee Members

– Port Employees, PDX CAC Member & External Business Partners

• Evaluation Criteria – Concept, Menu/Product, Street Pricing & Customer Service Plan – Business Plan/Pro-Forma, Sustainable Practices & Quality Control – Concept Design & Execution – Airport Concession Disadvantage Business Enterprise (ACDBE)

Program Participation – Financial Statement & Capability – Site Visits & Health Reports

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Selected Proposers

*

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* Committee Location Changes

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Sel C2160 – Regional healthy foods concept featuring bowls, wraps, salads and a selection of vegan and gluten free offerings

C2162 – Local iconic Oregon coast concept featuring world famous clam chowder and other seafood dishes; offering limited selection of local beer and wine

C2164 – Local Vietnamese concept featuring pho, stir fry and Asian offerings; offering limited selection beer and wine

C2166 – Regional pizza concept featuring personal sized pizzas for $7.17 with unlimited toppings in 3 minutes; offering limited selection of local beer and wine

C2168 – National sandwich concept featuring healthy sandwiches, salads, and wraps made to order *

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C2192 – Local iconic casual dining bar concept featuring a diverse menu for all age groups; offers a full bar and features local beer and wine

C2072 – National concept featuring sandwiches, wraps and other made to order menu items

C2150 – Canada based sterling silver jewelry targeting female travelers with some male products

C2152 – Local women’s apparel boutique featuring a wide selection of shoes and apparel items

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T2429 – Local iconic casual dining bar concept featuring a farm to table menu for all age groups; offers a full bar and features local beer and wine

D2208 – National concept featuring a wide variety of sushi & Japanese style dishes *

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Existing Concessionaire Employee Impact • Existing Concessionaire Staffing Total

– 140 Including Supervisors and Managers

• New Concessionaire Staffing Estimate

– 314 Including Supervisors and Managers

• Increased Employment Opportunities (All leases expire 12/31/14 –

start 1/1/15)

– 174 Additional Positions Needed

– 124% Increase in Staffing Over Existing

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Existing Concessionaire Employee Impact

• Concessionaire Job Fair for Existing Concessionaire Employee Base

(October)

• Possible Future PDX Website Link to Concessionaire Job

Opportunities Featuring New Openings

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Business Terms

• 10 Year Terms

• Rent is the Greater of Tiered Percentage Rent (by Concept) or

Minimum Annual Guarantee (MAG)

• Improvements & Mid-term Refurbishment by Concessionaire

• Storage & Utility Cost Recoveries

• Defined Permitted Uses with Street Pricing

• Selective Beer & Wine Offerings by Location

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Next Steps

• Commission Approval of Leases (September 10, 2014)

• Design Review & Permitting (August – January 2014)

• Old Concessions Close (December 31, 2014)

• New Concessions Open (January 1, 2015 – March 31, 2015)

– 6 close December 31, 2014

– 6 open January 1, 2015

– 5 open April 1, 2015

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Oregon Market Food Cart Pod

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OM Food Cart Pod Rendering

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OM Food Cart Pod Layout

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OM Food Cart Pod Artwork

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OM Food Cart Pod Artwork

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OM Food Cart Construction

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OM Food Carts Installed

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OM Food Cart Pod Schedule

• 3 North Carts – October 2014 • 3 South Carts – December 2014

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OM Food Cart Pod

Thank You