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  Press Release

For Immediate Release:
June 5, 2000


Contact Information:
Monique Bond
773-686-3700

Local Businesses Selected for First Phase of New Midway Airport Concessions Program
June 5, 2000 – Shops and restaurants in the new Midway Airport Terminal and concessions area will give travelers a taste of Chicago. The Department of Aviation on Wednesday will introduce Phase One of a retail concessions program for the new Midway Airport Terminal Building to the Chicago City Council for approval. The first phase of the program will incorporate all local businesses, of which 97 percent are minority owned. The MBE/WBE goal for the entire program is 30 percent, which will be exceeded substantially when the entire concessions program is submitted to the Council.

Fifty stores and restaurants will cover almost 50,000 square feet of the new Midway terminal, which is currently under construction. That compares with an existing retail concession area of approximately 17,000 square feet.

"The goal of the new Midway Airport concessions program is to enhance quality and value for our travelers, while keeping the local flare," said Commissioner Thomas R. Walker, Department of Aviation. "Travelers will not only be greeted with a spacious and modern new facility, but with the types of food and gifts that make Chicago unique."

Walker said other program objectives were to encourage opportunities for local firms and disadvantaged business enterprises, optimize concession revenue to the airport, and maintain both flexibility for the City and the integrity of the licensee selection process.

Five of the Phase One restaurants and one specialty store will open with the completion of the new Midway Airport terminal and the concessions triangle in the first quarter of 2001. The existing concessions will remain open at that time. The new concession triangle will be located just beyond the security checkpoint, allowing for improved customer service. Travelers will be able to clear security, locate and check in at their gates, and then enjoy a wide variety of food, beverage and shopping opportunities in a Chicago neighborhood setting.

Vendors identified as operating in the Concessions Triangle are expected to be open for business when the new Midway Terminal opens in the first quarter of 2001. The Department of Aviation plans to submit phase two of the Midway concessions program for City Council consideration very shortly.

Additional retail and food concessions will be located throughout the new concourses, all of which will be completed in 2004. Approximately 350 permanent jobs will be created as the result of the first phase of the Midway Terminal concessions program.

The concessionaires will invest approximately $12.8 million to enhance their individual restaurants and stores. Basic construction costs are, however, included in the overall construction budget for the Midway Terminal Development Program. No local property tax dollars are being used.

The vendors will pay an average of 13 percent of gross revenue to the Department of Aviation, an amount that is on the high end in terms of what medium-sized airports charge their tenants for new concessions programs. The City expects to receive $39 million a year from the Midway Airport concessions program when it is fully operational. "These agreements were negotiated in a manner that provides a significant revenue stream to the Airport while allowing the concessionaires to charge fair prices to their customers," said Commissioner Walker.

Outreach To Prospective Vendors
A Request for Qualifications (RFQ) was issued in April of 1998. 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 received 51 proposals from 46 businesses or individuals for six Request for Proposal (RFP) packages. The Department of Aviation continues to promote the hiring of locally based minority and women owned businesses as part of the Midway Airport Terminal Development Program. With only a quarter of the overall program completed, 33% of the dollar value of all contracts awarded to date have been to minority and women owned firms.

In addition to the Department's aggressive community hiring initiatives, the Midway Airport Terminal Development Program has reached out to local community organizations and workers to form apprenticeship programs that help individuals build a career in the trades. So far, 20 people from the Midway community have been placed in apprenticeship positions for skilled trades jobs since the start of the Program. The goal of the Program is to place 100 community residents in construction jobs, including 25 in apprenticeship positions.


Construction Shaping The Future Of Midway Airport
Midway's passengers are taking full advantage of the new Midway Airport Parking Garage, which opened last summer - bringing covered parking to Midway Airport for the first time. Later this year, travelers will use the new pedestrian bridge to cross Cicero Avenue; in early 2001 the new Midway Airport Terminal will open for business. Completion of the entire program will come in 2004 with the opening of the new 41-gate concourse building. When completed, as many as 17 million travelers will travel through Midway Airport each year.

In addition to being the largest public works project currently underway in the State of Illinois, Midway is one of the fastest growing airports in North America. Midway closed out 1999 with a record 13.5 million passengers.