1. Approval of Subleasing Plan: Submitted by MarketPlace Philadelphia LP, (MPLP) to City 60 days prior to each lease year (coincides with City Fiscal Year – June 30). If City and MPLP fail to agree within 60 days, plan is submitted for dispute resolution. Considerations for development of subleasing plan:
a. Program Analysis:
i. Sales potential
ii. Space availability
iii. Space required to satisfy requirements of traveling public.
iv. Space supported by forecasted enplanements and sales
v. Estimated rent
b. Space allocation:
i. Food and beverage
ii. Newsstands
iii. Specialty retail
iv. Services
v. Adjacencies and design
c. Goal-Setting:
i. Merchandising/uses
ii. Budget
iii. ACDBE participation
iv. Local/national brand mix
v. Competition/maximize diversity of subtenants |
2. Identification of Prospective Subtenants by MPLP:
a. Desired mix of brands, concepts, and services
b. Community outreach, research, and networking
c. Industry knowledge and relationships
d. Direct marketing by/to prospective subtenants
e. PA UCP listing of certified ACDBE vendors
f. Encouragement of competition through diversity of subtenant population |
3. Cultivation of Prospective Subtenant Interest:
a. MPLP cold calls
b. Meetings and conferences
c. Advertising
d. Outreach/workshops
e. Dissemination of information:
i. Sales history
ii. Passenger enplanements
iii. Passenger demographics
iv. Established subtenants already in program |
4. Proposal Processes:
a. Proposals invited when appropriate: i. Sent to multiple prospects b. Proposals exchanged when appropriate: i. With multiple prospects ii. With single prospect, e.g.: • Sole source subtenant (e.g. one-of-a-kind product or service ) • Existing subtenant renewal • Time constraints |
5. Prospective Subtenant Evaluation:
a. Track record, business history b. Financial capacity c. Managerial and operational strengths/weaknesses d. ACDBE certification and/or participation e. Airport retail experience f. Other relevant experience g. Provide competition and diversity |
6. Selection Process
a. Evaluation criteria as set forth in 5 above b. Economics c. Design d Reputation and experience e. Acceptance of sublease terms f. Other considerations: i. Desired brand ii. Desired concept, product, or service iii. Enhancement to PHL image iv. Potential impact on other subtenants |
7. Negotiation with Selected Subtenant:
a. Financial terms b. Use clause c. Construction scope d. Term (length of agreement) e. Other sublease terms and conditions |
8. Approval:
Negotiated sublease submitted for concurrence prior to execution to the following: 1. Law Department 2. Deputy Director of Aviation Finance/Administration a. ACDBE/Compliance 3. Deputy Director of Aviation Property Management/ Business Development 4. Deputy Director submits to Chief Executive Officer of the Philadelphia International Airport with recommendation. |
9. If concurrence is received, Sublease Executed by MPLP
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