Food, Beverage and Retail Program Subleasing Guidelines

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:

  • Program Analysis:
    • Sales potential
    • Space availability
    • Space required to satisfy requirements of traveling public
    • Space supported by forecasted enplanements and sales
    • Estimated rent
  • Space allocation:
    • Food and beverage
    • Newsstands
    • Specialty retail
    • Services
    • Adjacencies and design
  • Goal-Setting:
    • Merchandising/uses
    • Budget
    • ACDBE participation
    • Local/national brand mix
    • Competition/maximize diversity of subtenants

 

2.  Identification of Prospective Subtenants by MPLP:

  • Desired mix of brands, concepts, and services
  • Community outreach, research, and networking
  • Industry knowledge and relationships
  • Direct marketing by/to prospective subtenants
  • PA UCP listing of certified ACDBE vendors
  • Encouragement of competition through diversity of subtenant population

 

3.  Cultivation of Prospective Subtenant Interest:

  • MPLP cold calls
  • Meetings and conferences
  • Advertising
  • Outreach/workshops
  • Dissemination of information:
    • Sales history
    • Passenger enplanements
    • Passenger demographics
    • Established subtenants already in program

 

4.  Proposal Processes:

  • Proposals invited when appropriate:
    • Sent to multiple prospects
  • Proposals exchanged when appropriate:
    • With multiple prospects
    • 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:

  • Track record, business history 
  • Financial capacity
  • Managerial and operational strengths/weaknesses
  • ACDBE certification and/or participation
  • Airport retail experience
  • Other relevant experience
  • Provide competition and diversity

 

6. Selection Process

  • Evaluation criteria as set forth in 5 above 
  • Economics
  • Design
  • Reputation and experience
  • Acceptance of sublease terms 
  • Other considerations:
    • Desired brand
    • Desired concept, product, or service 
    • Enhancement to PHL image
    • Potential impact on other subtenants

 

7.  Negotiation with Selected Subtenant:

  • Financial terms 
  • Use clause
  • Construction scope
  • Term (length of agreement)
  • Other sublease terms and conditions 

 

8.  Approval:

  • Negotiated sublease submitted for concurrence prior to execution to the following:
  • Law Department
  • Deputy Director of Aviation Finance/Administration
    • ACDBE/Compliance 
  • Deputy Director of Aviation Property Management/ Business Development
  • 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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