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Presentation - est.10 minutes

San Jose City Council
March 11, 2025

Document
Presentation - est.10 minutes
Meeting
March 11, 2025
Body
San Jose City Council
Original file
5.7 MB
Text extracted from the city's file for reading and search. Open the original on legistar.granicus.com. That file is the official record.

San José Mineta International Airport
Recommendation of Award
for the
Airport Retail Concession Request for Proposals
Approval of Proposer Rankings and Authorization
to Negotiate and Execute Concession Agreements
for the San José Mineta International Airport
Retail Concession Program
Mukesh (Mookie) Patel, Director of Aviation
Rebekah Bray, Principal Property Manager
Item # 5.1
March 11, 2025
Retail Concession RFP
Goals and Objectives
(abridged)
2 1. Highly experienced retail operators with a proven
record of success in:
• Exceptional customer service
• Top-quality goods
• Convenient experiences

2. Incorporate technology and innovative concepts to
expand offerings

3. Create a distinctive San José and Silicon Valley
experience for passengers and Airport users that capture the region's unique identity.

4. Optimize retail revenue generation
Extensive Outreach
3 San José Minority Business Development Agency
Various Business and Ethnic Chambers
Airport Minority Advisory Council
Airport Council International
FAA Matchmaker System
Small Business Development Center
Social media campaign achieved 20,097
impressions and 1,143 engagements
Outreach at 3 different Industry Conferences
Outreach sessions on May 22 and 23, 2024
Package I: Hudson
• ACDBE Participation: 15%
• Capital Investment: $7,252,253
• MAG: $2,096,779
• Percentage Rent: 21% on all products, 18% on locally made products 4 Terminal A 5
Terminal A
6 7
Terminal A
Terminal A: Baggage Claim
8 Terminal B
9 10
Terminal B 11
Package II: Paradies Lagardére
• ACDBE Participation: 12%
• Capital Investment: $9,650,349
• MAG: $2,746,246
• Percentage Rent: 19% on all products, 16% on locally made products 12 Terminal A
13 Terminal B
14 15
16 Terminal B 17
Terminal B
18 Terminal B: Baggage Claim
19 Airport Concession Disadvantaged Business
Enterprise (ACDBE) Participation

CURRENT RETAIL ACDBE
PARTICIPATION: 9%

NEW RETAIL ACDBE
PARTICIPATION: 13%
PROJECTED INCREASE IN ACDBE PARTICIPATION: 47%
20 Performance
Excellence Partners
Skyview
Concessions
Pacific Business
Partners
Cato Hospitality
Group
Oaklandish
Airport Concession Disadvantaged Business Enterprise (ACDBE) Participation
21 Supporting Local
• All grab and go locally sourced from Santa Clara
County
• Hudson- Eataly
• Paradies- Greenlee’s
• Unsold grab-and-go donated to Loaves & Fishes
Family Kitchen of San Jose
• Representing:
• Professional and local collegian sports teams
• Local tech companies including Apple and Google
• Over 50 local businesses
• Bi-Annual Outreach Opportunities
22 23
24 Overall Results:
• 12 new concepts
• 12-year minimum revenue to the airport: $47.3 million • Average percentage rent of 19.3%
• Minimum capital investment: $17 million
• Integrated technology
• Increased local participation: 50+ businesses
• ACDBE retail participation increases by almost 50%
25 Recommendation of Award
• Package I: HG SJC Retail Concessionaires, LLC (Hudson) • Package II: Paradies Lagardére @SJC Retail, LLC
26 4
27 4 28

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