Ft.

Lauderdale-Hollywood
International Airport
May, 2010

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To seek Board direction regarding
the concession management and
leasing methodology best suited to
improving customer service and
growing revenue at Fort
Lauderdale-Hollywood International
Airport (FLL)
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 Presented current concession contract
situation
 Suggested the following revisions:
◦ Food & Beverage:
 CA-One: Non-exclusive agreement for Terminals 3 & 4
 New competitive solicitation for Terminals 1 &2
◦ News & Gift:
 Paradies: Non-exclusive agreement for Terminals 3 &
4
 AMS: Non-exclusive agreement for Terminals 1 & 2
 Need Policy direction to move forward

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 Consultant engaged in February 2010
◦ Completing analysis of existing conditions & market insight
study
◦ Concession redevelopment study
 Analyzing concession demand for space (store and support)
 Prepare sales and revenue projections
 Study covers all types of shop-based concessions (food service,
news/gift, specialty retail, duty-free retail)
◦ On-call services may include, but are not limited to:
 Leasing guidelines/contract term recommendations
 Privilege fees, rental structure, and capital investment
requirements
◦ General advisory services may include, but are not limited to:
 Planning and analysis in support of relocation of security
checkpoints or terminal redevelopment
 Analysis of costs, benefits and means for common concession
goods receiving, screening and delivery.

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 Food and Beverage:
◦ CA-One – Terminals 1-4: Expires December 31,
2013
 News & Gift:
◦ Paradies Fort Lauderdale – Terminal 1, Concourse B:
Expires December 31, 2011
◦ AMS – Terminal 1, Concourse C & Terminal 2:
Expires December 31, 2013
◦ Paradies Broward – Terminals 3 & 4: Expires
December 31, 2013
 Duty Free:
◦ Broward Duty Free: Expires December 31, 2013

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 December 31,
2013
Mid 2013
November 2010 Current scheduled
Opening of new expiration of food
Construction Documents with permanent service, retail and
Mid 2011 -
Commercial Locations in Terminal 3 and duty free retail leases
Terminals 3 and 4 Completed
Early 2012 4 concessions
by BCAD Interim
Concessions
Required During
Construction Investment
Phase Required

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 Existing food & beverage concession agreement is
exclusive and prevents any new food & beverage
operator from serving the terminal complex prior to
December 31, 2013
 CA-One, Paradies, and Broward Duty Free unlikely to
open new locations in Terminals 3 or 4 without
extension due to investment required
 Airport is required to reimburse existing food and
beverage concessionaire for unamortized investment -
this option is very expensive for the Airport
◦ Substantial investment in new facilities beyond the initial
investment was not contemplated in retail or duty-free retail
contracts

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 Existing agreement does not allow for a new food
service concessionaire to open locations before
January 1, 2014 due to exclusivity language. With
no extension, the County is left with two options:
◦ Require existing concessionaire to build new locations, but the
County is compelled to buy out the investment; or
◦ Do not have any food service concessions in newly built-out areas
(or areas that are substantially changed) until at least 1/1/14.
 An outgoing concessionaire may be more interested
in cutting costs than growing sales
 An outgoing concessionaire is unlikely to invest in
interim locations during construction

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 Extend CA-One for Terminals 3 & 4 only
◦ Require a new concession plan (being developed with
SH&E)
◦ Allows Airport to ensure investment made in Terminals 3
&4
◦ Include best practice terms & conditions, including
performance-based language and “green” design
 Remove all CA-One Exclusivity
◦ Competition encourages better performance
◦ Allow News & Gift operators to sell bottled beverages
 Issue a Competitive Solicitation for Terminals 1 &
2 in late 2010
◦ Contract effective 1/1/2012

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 Extend AMS, Paradies, and Broward Duty Free
as of January 1, 2012
◦ AMS in Terminals 1 & 2
◦ Paradies in Terminals 3 & 4
◦ Allows Airport to ensure investment made in all
terminals and accommodates varying development
schedules
◦ Include best practice terms & conditions, including
performance-based language and “green” design
◦ Contracts are non-exclusive
 Allows flexibility for new product lines not carried by
existing vendors

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 Request policy direction to address:
◦ Food & Beverage:
 CA-One: Non-exclusive agreement for Terminals 3 & 4
 New competitive solicitation for Terminals 1 & 2 in late
2010
◦ News & Gift:
 Paradies: Non-exclusive agreement for Terminals 3 &
4
 AMS: Non-exclusive agreement for Terminals 1 & 2
◦ Duty Free
 Broward Duty Free: Non-exclusive agreement in all
Terminals with international departures

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