For Immediate Release:
July 19, 2000

Contact Information:
Monique Bond
773-686-3700

Chicago Airport System Concessions Programs Continue to Create Opportunities for Minority- and Women-Owned Enterprises
(CHICAGO) July 19, 2000 – New concessions at both Midway Airport and O’Hare International Airport will not only give travelers a wide variety of foods and gifts to choose from, but also a taste of some local flavors. The Department of Aviation today submitted to the Chicago City Council new concessions for O’Hare International Airport’s Terminal 3 and additional agreements for the new Midway Airport Concessions Program. Phase one of the Midway Airport Concessions Program, which was announced last month, includes all local vendors, of which 97 percent are minority owned. With today’s announcement, the MBE/WBE participation is 32 percent, exceeding the goal for the entire program of 30 percent. "Our goal is to provide quality, unique and convenient retail and food options for the people who travel through Chicago’s airports," said Commissioner Thomas R. Walker. "While doing that, we also work hard to create opportunities for local and minority owned firms." Since, 1995, concessions sales have increased by 75 percent at Midway Airport and 53 percent at O’Hare International Airport.

Midway Airport
Two additional agreements were introduced today as part of the new Midway Airport Concessions Program. When complete, the new Midway Airport Concessions Program will include more than 50 stores and restaurants and will cover 50,000 square feet. The new agreements include Hudson News (Hudson-JRE Midway Joint Venture) and Nuts on Clark. Hudson News will operate 14 newsstand and gift shops throughout the new Midway Airport Terminal Building and concessions triangle area. Those shops are expected to open first quarter 2001.

Nuts on Clark, a well-known local and woman-owned nuts and candies specialty store will operate a new shop in the new Concourse A, which is expected to be completed in 2003. The additional agreements are projected to exceed $9 million in annual sales, with more than $1.3 million in annual revenue to the City. The two concessionaires are projected to invest $3.4 million in capital improvements.

O’Hare International Airport- H/K Apex Project
It will soon be like dining and shopping under Chicago’s great skyline at O’Hare International Airport’s Terminal 3. A new food court designed to celebrate Chicago’s world renowned architecture will feature nine food and eight retail locations. Shops and restaurants will highlight Chicago-style foods and unique gift items. An additional four retail spaces will soon be available.

The food court is conveniently located at the triangle-shaped apex of Concourses H and K, just beyond the security checkpoint. The shops and restaurants are expected to open during the first quarter of 2001. The H/K Apex Project is expected to cost close to $17 million. Concessionaires are anticipated to invest an additional $3 million to enhance their individual spaces. The project is funded through general airport revenue bonds. No local property tax dollars are being used. The agreements submitted to the City Council today are expected to generate $6.4 million in sales annually, of which $1.1 million annually will be revenue to the City. Once operational, the entire area is expected to generate $23 million in sales annually, with $4 million in annual revenue to the City. Over 400 permanent jobs are expected to be created at the airport from the H/K Apex Project .

Other Business
The Department of Aviation is submitting an agreement for new luggage carts and lockers, along with several license assignments and sublicenses.

Smarte Carte, Inc. will partner will Hill, Taylor LLC, a local MBE firm, to dispense luggage carts at both O’Hare International Airport and Midway Airport. In a separate license agreement, Smarte Carte, Inc will partner with Linda O’Leary & Associates, a local WBE firm to provide lockers at O’Hare International Airport and Midway Airport. Smarte Carte has 30 years of corporate experience in designing and operating cart control systems, baggage carts and cart operations at airports and 25 years of experience in bus terminals, train stations, malls, amusement parks and other public venues.

In addition, two contract assignments will be introduced to City Council. World Duty Free Americas was purchased by BAA, plc. Host International Inc., was purchased by Autogrill SpA. Highland Bank’s agreement is being assigned to Seaway National Bank, Inc.

The Department of Aviation will also introduce to City Council the addition of two sublicenses. Airport Concessions, Inc. doing business as Gold Coast Dogs, will become sub licensee to Host International, Inc. and AltiTUNES will become a sub licensee to Air Ventures (WH Smith). Nationally, WH Smith has replaced its Wall Music locations with AltiTUNES, a music and portable entertainment retail concept specifically designed for the airport marketplace. AltiTUNES currently operates 25 airport locations in 20 airports.   

Outreach to Prospective Vendors

Midway
The Department of Aviation in April of 1999 issued a Request for Proposals (RFP). The Department of Aviation sponsored a public outreach seminar on business opportunities at Chicago’s airports at that time. In addition, newspaper ads were placed, notices were sent to community, business and assistance organizations, a presentation was made to the Midway Community Advisory Panel and a pre-submittal conference was held. Overall, the Department of Aviation received 51 proposals from 46 business or individuals for six Request for Proposal (RFP) packages.

O’Hare
The Department of Aviation has an open Request for Qualifications (RFQ) for O’Hare’s concessions opportunities, first issued in April 1996. The Department has accepted applications on an on-going basis since that time. When space becomes available, the Department of Aviation looks to its RFQ responses for it choice of vendors. So far, the Department of Aviation has received over 250 responses to this open RFQ.