MarketPlace Development, in conjunction with the Metropolitan Washington Airports Authority (MWAA), invited all local, regional, and national retailers, quick- service food operators, and restaurateurs to learn more about the opportunities that will be available for the thrid phase of leasing at Ronald Reagan Washington National Airport (DCA) and Washington Dulles International Airport (IAD) on March 26, 2014.
3. Agenda
Opening Remarks
Recap of Fall Outreach Meeting and Phase 1 & Phase 2 Leasing
Overview – Dulles International and Reagan National Airports
Phase 3 Leasing Opportunities
Airport Concession Disadvantaged Business Enterprise (ACDBE)
Certification
Question / Answer Session
4. Metropolitan Washington Airports Authority
Jack Potter, President & CEO
Steve Baker, Vice President of Business Administration
Sandi Greene, Director of Concessions
32. Media Clips from Phase 2 Leasing
The Metropolitan Washington Airports
Authority (MWAA) has selected a joint
venture between OTG and Baldi
Management Group (BMG) to manage the
Terminal A concessions development at
Ronald Reagan Washington National
Airport.
OTG to bring ‘sweeping retail and
restaurant changes’ to Reagan Airport
33. Accomplishments to Date
84 units leased
28 units under construction
Improved merchandise mix
Mix of national, regional, and local brands
ACDBE participation in Phase 1 and Phase 2 selections
Increased revenue to MWAA
35. Manager for the food & beverage and retail programs at
Dulles International and Reagan National Airports
Responsibilities include:
Leasing
Marketing
Management
Construction coordination
36. Goals
Best possible passenger experience
Cutting edge brands
Innovative concepts
Inclusion
Opportunity for national, regional and local concepts
Opportunity for large, medium, and small operators
Opportunity for ACDBE operators
Improve financial return to MWAA
37. IAD Overview
135 gates
135 domestic & international destinations
Over 62 non-stop departures to 36
international cities
21.9 million passengers in 2013
18,000+ employees
66% increase in international enplanements in
the last 10 years
38. 76% of passengers spend more than one hour in
the airport prior to departure
61% of passengers spend more than 90 minutes
at the airport prior to departure
Median income - $92,810
IAD Overview
Passenger Demographics
39. DCA Overview
44 gates
409 daily departures
94 non-stop destinations
20.4 million passengers in 2013 (highest since opening)
7,000+ employees
40. 60% of passengers spend more than one hour in
the airport prior to departure
42% of passengers spend more than 90 minutes
at the airport prior to departure
Median income - $96,110
DCA Overview
Passenger Demographics
41. IAD and DCA Overview
2013 Sales and Enplanements
IAD
Sales: $107.2 Million
Enplanements: 10.9 Million
Sales per Enplanement: $9.85
DCA
Sales: $94.6 Million
Enplanements: 10.2 Million
Sales per Enplanement: $9.29
42. IAD Overview
Sales PSF (by Category)
Over 100 shops
2013 sales per
square foot:
$1,169
$1,240
$1,317
$922
$1,169
$200
$600
$1,000
$1,400
45. Unique Airport Conditions
Space size
Aggressive economics
Hours of operation
Storage
Distribution and delivery
Design and construction
ACDBE requirements
Security
46. IAD Overview
Hours of Operation (Average)
Location Food & Beverage Hours* Retail Hours*
Main Terminal 24 Hours 5:00 AM – 10:00 PM
Concourse A 6:00 AM – 10:00 PM 6:00 AM – 9:00 PM
Concourse B 5:00 AM – 9:00 PM 6:00 AM – 9:00 PM
Concourse C 5:00 AM – 10:00 PM 7:00 AM – 9:30 PM
Concourse D 5:00 AM – 10:00 PM 7:00 AM – 9:30 PM
*Select Retail, Newsstands and Food & Beverage locations are open 24 hours.
All hours are subject to change based on flight schedules.
47. DCA Overview
Hours of Operation (Average)
Location Food & Beverage Hours* Retail Hours*
National Hall 6:00 AM – 9:00 PM 7:00 AM – 8:00 PM
Terminal A 5:00 AM – 9:00 PM 7:00 AM – 8:00 PM
Terminal B 5:00 AM – 9:00 PM 7:00 AM – 8:00 PM
Terminal B/C 5:00 AM – 9:00 PM 7:00 AM – 8:00 PM
Terminal C 5:00 AM – 9:00 PM 7:00 AM – 8:00 PM
*Select Retail, Newsstands and Food & Beverage locations are open 24 hours.
All hours are subject to change based on flight schedules.
56. Retail Merchandising Unit (RMU) / Kiosk Program
Re-design of RMU / Kiosk
Program at both airports
New state-of-the-art
fixtures
Focus on unique needs of
each airport
Opportunity for:
Small businesses
Entrepreneurs
Short-term commitment
Low capital
Incubation to permanent
tenant
Apply online
60. Dulles International
Phase 3 Opportunities by Category
3 Bar / Restaurant Locations
2 Quick Serve Locations
2 Retail Locations
4 Newsstand Locations with 2 Retail
Locations
61. CONCOURSE A
2013 Enplanements: 2,953,687
CONCOURSE B
2013 Enplanements: 2,626,340
Phase 3 Opportunities, Concourses A & B
Dulles International
10: Food & Beverage
3,016 SF
8: Food & Beverage
1,212 SF 9: Food & Beverage
2,270 SF
62. 1: Food & Beverage
1,105 SF
3: Retail
316 SF
4: Retail
625 SF
5: Food & Beverage
2,270 SF
D.C. CRAFT
Brews
CONCOURSE C
2013 Enplanements: 3,027,069
CONCOURSE D
2013 Enplanements: 2,009,514
Phase 3 Opportunities, Concourses C & D
Dulles International
63. Dulles International
Phase 3 News Package
4 Newsstand Locations and 2 Retail
Locations
Achieved sales in excess of $6.3M
in 2013
Locations in Concourses A, B, C,
and the Main Terminal
64. CAPITOL CITY INK
CAPITOL CITY INK
CAPITOL CITY INK
CAPITOL CITY INK
WASHINGTON INFORMER
2: News
149 SF
6: News
212 SF
7: News
2,041 SF
13: News
493 SF
12: Retail, 902 SF
11: Retail, 520 SF
Phase 3 News Package
Dulles International
65. Phase 3 Opportunities
Dulles International
CAPITOL CITY INK
CAPITOL CITY INK
CAPITOL CITY INK
CAPITOL CITY INK
WASHINGTON INFORMER
D.C. CRAFT
Brews
1: Food & Beverage
2: News 3: Retail
4: Retail
5: Food & Beverage
6: News
10: Food & Beverage
7: News
8: Food & Beverage
9: Food & Beverage
13: News
11: Retail
12: Retail
66. Reagan National
Phase 3 Opportunities by Category
3 Bar / Restaurant Location
2 Retail Locations
2 Quick Serve Locations
67. Phase 3 Opportunities, Pier Locations
Reagan National
1: Food & Beverage
1,329 SF
2: Food & Beverage
751 SF
3: Food & Beverage
1,541 SF
4: Food & Beverage
970 SF
5: Food & Beverage
1,537 SF
North Pier 2013 Enplanements:
4,115,960
Center Pier 2013 Enplanements:
1,977,439
South Pier & Connector
2013 Enplanements:
2,591,272
68. Phase 3 Opportunities, National Hall
Reagan National
6: Retail
976 SF
7: Retail
807 SF
Total DCA 2013 Enplanements:
10,185,305
69. 1: Food & Beverage
1,329 SF
2: Food & Beverage
751 SF
3: Food & Beverage
1,541 SF
4: Food & Beverage
970 SF
5: Food & Beverage
1,537 SF
6: Retail
976 SF
7: Retail
807 SF
Phase 3 Opportunities
Reagan National
71. Leasing Goals
Stimulate competition
Drive revenue
Get innovative concepts and best operators
ACDBE participation and local businesses
Transparency and open access
72. Tenant outreach
Create a list of interested
tenants for different
opportunities
Proposals sent to
interested / qualified
parties
Counter proposals
Evaluate counters and
negotiation
MWAA approval
Offer lease
Leasing Process
73. Choosing a Tenant
“How do you choose a tenant for the airport?”
It is our practice to get multiple offers on each space to create demand, establish a
market value for the space, and ascertain the highest and best use for the location.
We then evaluate the offers based on the following:
Use & Concept (innovative and new)
Economics (rent)
Operator Experience and Success
Financial Strength of Operator
ACDBE Participation
Store Design
Investment
75. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y
Airport Concession Disadvantaged Business Enterprise
(ACDBE) Program
76. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y
Airport Concession Disadvantaged Business Enterprise
(ACDBE) Program
85
Federally required program that is locally implemented
Pertains to concession activities of airports receiving Federal financial
assistance from Federal Aviation Administration (FAA)
Intended to ensure nondiscrimination in the award and administration of
concession opportunities and create a level playing field on which ACDBEs
can compete fairly for concession opportunities
77. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y
Code of Federal Regulations
86
49 CFR Part 26
49 CFR Part 23
78. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y
Equal Opportunity Programs (EOP)
Department
87
The EOP Department is responsible for the implementation of the Airports
Authority’s ACDBE Program in accordance with 49 CFR Parts 26 and 23 as
amended
EOP’s primary ACDBE responsibilities:
• Outreach
• Certification
• Compliance
79. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y
ACDBE Basic Eligibility Requirements
88
51% owned and controlled by socially and economically disadvantaged
individual(s)
Disadvantaged owner(s) must be U.S. citizen(s) or lawfully admitted
permanent resident(s) of the U.S.
Firm must meet ACDBE small business size standard, generally, $56.42
million in average annual gross receipts (3 year average). Affiliates are
included.
Firm must be organized as a for-profit business
80. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y
Presumptive Disadvantaged Groups (Rebuttable)
89
African Americans
Hispanic Americans
Subcontinent Asian Americans
Native Americans
Asian-Pacific Americans
Women
81. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y
Burden of Proof
90
Ownership (documentable proof)
Management Control (daily control)
Owner(s) Personal Net Worth is below $1.32 million
(after allowable adjustments)
Firm meets ACDBE size standards (gross receipts or number of
employees)
82. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y
ACDBE Certification Process
91
Home state ACDBE certification first
Submit complete DBE Uniform Certification Application
Submit all applicable supporting documents (15-25 documents)
Site visit/interview with principal owner(s)
Request for additional information/clarification (if necessary)
Render final decision (within 90 days of receipt of full application,
including additional requested information)
83. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y
ACDBE Allowable Participation
92
ACDBE participation may be achieved through the following methods:
Direct lease with ACDBE
Sublease or subcontract with ACDBE
Joint Venture with ACDBE(s)
84. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y
Joint Ventures
Association of an ACDBE firm and one or more other firm(s)
Carry out a single, for profit business enterprise
Parties combine their property, capital, efforts, skills, and knowledge
ACDBE is responsible for a distinct, clearly defined portion of the work
of the contract
ACDBE share of capital contribution, control, management, risks, and
profits of the joint venture are commensurate with ACDBE firm’s
ownership interest 93
85. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y
Joint Ventures
ACDBE joint venture member must be certified in the type of work to
be undertaken in the joint venture
Joint venture entities cannot be certified as an ACDBE
Joint venture agreement must be reviewed and approved by EOP prior
to lease/contract execution, for ACDBE participation to count toward
meeting the ACDBE goal
94
86. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y
Information
www.mwaa.com
Metropolitan Washington Airports Authority
Office of Equal Opportunity Programs (MA-410)
Suite 144
1 Aviation Circle
Washington, DC 20001-6000
(703) 417-8625
95
87. Washington’s Airports = Great Opportunities
Strong passenger traffic
Great passenger demographics
High sales per square foot
High sales per enplanement
Excellent locations for your business