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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