Airport Concessions Request for Proposals Pre-Proposal Conference March 24, 2016

Tulsa market TUL background Airline and passenger demographics Concession opportunities Request for Proposals (RFP) process Concession requirements Submittal instructions Evaluation of proposals Questions Agenda

Tulsa is nestled in the northeastern quadrant of Oklahoma, right in the heart of "Green Country.“ Our city boasts a widely diversified business base, including aerospace, healthcare, education, transportation and energy. Considered the cultural and arts center of Oklahoma, Tulsa houses two world- renowned art museums, full-time professional opera and ballet companies, and one of the nation's largest concentrations of art deco architecture. Tulsa has been called one of America's most livable large cities and was ranked among the top 50 best cities in the US by BusinessWeek in Tulsa at a Glance

The Brady Arts District is one of the oldest sections of Tulsa. It is rich with cultural icons such as the Cain’s Ballroom and The Brady Theater. The Blue Dome District features a high level of architectural and historical significance and is known as a nightlife hot spot. The Cherry Street District includes Tulsa’s finest local and regional art galleries, and the highest number of locally owned businesses in town. Tulsa's Brookside District is one of the city's premier shopping and entertainment destinations. The area has one-of-a-kind shops and all conveniently located within walking distance of each other. Tulsa Districts

Tulsa International Airport (TUL) is a regional center for aviation activity and a major contributor to the region’s economic stability and sustainability. TUL serves an area that encompasses 64 counties in four states, and has 18 non-stop destinations. The airport complex encompasses over 4,700 acres and is home to over 13,000 employees, making TUL the largest employment complex in the region. In 2015, TUL had 2,816,967 passengers, and approximately 7,718 daily passengers. There are five different airline carriers at TUL – Allegiant, American, Delta, Southwest, and United. TUL Background

Age 18 – 29: 21.46% 30 – 39: 14.66% 40 – 49: 25.13% 50 – 59: 23.04% 60+: 15.71% Household income <$25,000: 4.02% $25,000-$49,999: 6.32% $50,000-$74,999: 14.37% $75,000-$99,999: 19.54% $100,000-$149,000: 21.26% $150,000+: 34.48% TUL Passenger Demographics Purpose of travel for arriving passengers Business: 54.55% Leisure: 45.45% Purpose of travel for departing passengers Business: 60.61% Leisure: 39.39% Length of time in terminal prior to departure 0-30 minutes: 1.01% minutes: 22.22% minutes: 44.44% Over 90 minutes: 32.32%

TUL passenger traffic is dominated by the tourist segment during the summer months and the business market dominates during other parts of the year. The average flight distance per scheduled departing seat in July 2016 is 540 miles. There is a strong morning peak with early travelers, then a fairly consistent level of flow of traffic throughout the remainder of the day. Below is the 5-year passenger forecast for enplanements at TUL Traffic Information

Achieve exceptional customer service and experience Provide a memorable experience for customers Offer menu items that reflect regional themes and interests Increase concession revenue to TAIT, and a reasonable ROI to Proposers Maximize ACDBE program participation Pursue creative concession design to excite customers Concession Program Goals

Total 23,033 square feet of space available for concessions at TUL –16,632 square feet assigned to food and beverage service –6,401 square feet assigned to retail service Total food sales for CY 2015 was $5,728,360 Total retail sales equaled $4,172,821 Expected lease commencement will begin on February 1, 2017 Concession Description

Total 23,033 square feet of space available for concessions at TUL –16,632 square feet assigned to food and beverage service –6,401 square feet assigned to retail service Total food sales for CY 2015 was $5,728,360 Total retail sales equaled $4,172,821 Expected lease commencement will begin on February 1, 2017 Concession Description

Historical Sales Data – Food & Beverage *Note: Construction of Concourse B in 2011 and Concourse A in 2014 impacted sales results reflected above.

Historical Sales Data – Retail *Note: Construction of Concourse B in 2011 and Concourse A in 2014 impacted sales results reflected above.

Food and Beverage Opportunities

Retail Opportunities

Terminal Map – All Concessions

Pre-Security and Baggage Claim

Concourse A Connector

Concourse B Connector

RFP Process

At least three (3) consecutive years within the past ten (10) years in the development, design, financing, construction, and management of one more food and beverage and/or retail operations in an airport, shopping center or transportation facility. Concession will be for a term not to exceed ten (10) years from the date of occupancy. Concession fees, support and storage fees, concession marketing fees, licenses, taxes, and utilities are also to be taken into consideration. Concession Requirements

The Airport Concession Disadvantaged Business Enterprise (ACDBE) annual food and beverage goal is 8.3%, and retail services goal is 3.1% The options for meeting this commitment are: –100% ACDBE participation –Percentage participation –Other legal arrangement ACDBE Participation

All proposers must submit one (1) original and (6) copies of each proposal and one (1) electronic PDF copy on a CD or flash drive. 12 point Arial font, English language Submitted on standard 8½x11 paper; legal- sized allowed for drawings and concept sheets Submittal Instructions

Evaluation Criteria

Special Considerations It is important to note that the TUL operating environment presents a unique set of challenges that do not exist in a typical retail setting. 1.TUL customers have a limited amount of time to spend in restaurants and shops and must be served quickly; 2.Facilities must be open 365 days a year with operating hours (as established by TAIT); 3.Major flight delays, generally weather related, are not uncommon. This could result in a significant population of restless travelers at TUL at unusual hours. Concession operations plan must be flexible enough to accommodate these delays; 4.Proposers must schedule deliveries for times that do not conflict with TUL’s peak traffic time; 5.Deliveries must unload at an area designated by the Airport.

Special Considerations It is important to note that the TUL operating environment presents a unique set of challenges that do not exist in a typical retail setting. 1.All goods and merchandise entering the airside will be screened; 2.The Airport is a non-smoking facility; 3.Store designs and merchandise displays must clearly accommodate passengers carrying luggage while avoiding creating safety hazards; 4.Training of employees should include knowledge of terminal areas and other services available to travelers; 5.Construction of locations may be subject to constraints due to terminal building construction.

Questions can be sent by , postal service, courier, or facsimile to: Tulsa Airports Improvement Trust 7777 E Apache St, Room A217, Tulsa, OK Facsimile: Thank you!