MIAMI-DADE MAYOR UNVEILS A NEW REVENUE-GENERATING PROCUREMENT TO ELEVATE MIA’S CONCESSION PROGRAMS
On Tuesday, July 16, 2019, the Mayor of Miami-Dade County, Carlos A Giménez, released a Memorandum advising the public that the Miami-Dade Aviation Department (MDAD) will release a Miami-Dade County Procurement to contract two highly qualified, capable, and experienced firms to finance, design, construct and manage Concessions Programs for the Central and South Terminals of the Miami International Airport.
The selected firms are expected to be awarded 106,000 square feet of existing concession space across 107 locations in both Terminals dedicated to food, beverage, retail services, and MIA’s North Terminal, excluding duty-free stores. What’s more, Miami-Dade Aviation Department (MDAD) expects to award an additional 42,000 square feet of concession space through the competitive solicitation and subsequent negotiated agreements, for a total of 148,000 square feet available for the Concessions Programs.
The Memorandum outlines that the selected firms will work through two separately negotiated agreements for an initial term of 15 years with one five-year renewal option. Each firm will be assigned a separate concession zone and will coordinate with MDAD to complement a series of capital improvements that include redeveloping existing concessions, redesigning common areas, as well as constructing new food, beverage, and retail concessions. The selected firms will also be tasked with preparing competitive solicitations for their subtenants to sublease the locations in their designated zones.
The proposed Scope of Services includes some of the following services:
- Design, build, finance, procure, maintain, and manage all aspects of the Concessions Programs for all concourses within the Central and South Terminals.
- Negotiate the reconfiguration and consolidation of the three existing South Terminal Security Screening Checkpoints into a single, centrally located Consolidated Security Screening Checkpoint operation to meet long term demand levels.
- Base building development, modernization and revitalization of the Central and South Terminals including the redevelopment of concession spaces.
- Manage the concession locations in a way that maximizes the highest and the best use of the locations.
- Sublease the concession locations to sub-tenants and coordinate the process with MDAD.
- Designate (at minimum) 20 percent of the awarded space for locally branded concession concepts.
- Designate (at maximum) 20 percent of airport brands for food and beverage locations and 35 percent for retail locations, leaving the remaining locations to be used as a blend of local, national, regional or international brands.
- Provide on-site staff to perform the daily functions specified in the Scope of Services.
Ultimately, the competitive solicitation will require the selected firms to bring expertise in design, financing, multiple internal and external stakeholder coordination, and airport concessions development and management.
Enabling Legislation: http://www.miamidade.gov/govaction/legistarfiles/Matters/Y2019/191769.pdf