PHL Food and Shops Leasing Outreach May 5, 2016

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1 PHL Food and Shops Leasing Outreach May 5, 2016

2 Operating Partner, MarketPlace PHL, LLC and President, LeJeune and Associates, LLC CLARENCE LEJEUNE

3 Agenda Opening Remarks, Chellie Cameron, CEO, PHL Opening Remarks, Paul McGinn, President, MarketPlace Development 2015 Leasing Outreach Highlights Why Bring Your Business to PHL? ACDBE Program Sublease Requirements Leasing Opportunities and Process Q & A

4 Chief Executive Officer, Philadelphia International Airport CHELLIE CAMERON

5 Managing Partner, MarketPlace PHL, LLC and President, MarketPlace Development PAUL MCGINN

6 Meet the Team Mel Hannah, VP and General Manager Sissy Williams, Assistant General Manager Steve Rosen, Controller Carlo Agostinelli, Leasing Manager

7 Meet the Team Chermaina Roundtree, Compliance Manager Tammy Palmatier, Specialty Leasing Manager Rebecca Simon, Manager of Marketing and Customer Service

8 2015 Leasing Outreach HIGHLIGHTS

9 Victoria s Secret Beauty

10 Geno s Steaks

11 Smashburger

12 Bruegger s Bagels

13 Bar Symon Michael Symon is a James Beard Foundation Award-winning chef, restaurateur, Food Network personality, and author.

14 Mo Burger

15 La Colombe

16 Balducci s

17 Piattino Pizza

18 Terminal B

19 WHY BRING YOUR BUSINESS TO PHL?

20 PHL = Great Opportunity Strong passenger traffic Mix of originating and connecting traffic International flights Diversified airline mix Great passenger demographics High sales per passenger

21 Passenger Traffic Over 500 departures daily to 125 cities, including 58 international cities More than 30.8 million passengers travel through PHL each year PHL ranks 18th in the country in passenger traffic Over 20,000 airline and airport employees 24 hours a day, 7 days a week

22 Passenger Demographics Traffic is approximately 45% connecting and 55% origin destination 56% of connecting passengers have layovers of 1-2 hours 42% of originating passengers arrive 2+ hours prior to departure 40% of passengers have annual household income of $100,000 or more Passenger median age is and 49% are married 58% of passengers are professionals or executive

23 Sales CY MILLIONS $200 $181.2 $189.8 $201.6 $203.1 $150 $100 $

24 Enplanements CY MILLIONS

25 SPE CY $14.00 $13.08 $12.91 $12.40 $12.00 $11.95 $

26 Sales per SF by Category 2015 $1,500 $1,366 $1,297 $1,398 $1,284 Over 178 in-line stores PHL 2015 Sales $203 M $1,000 PHL sales per square $703 foot of $1,284 $500

27 Special Airport Conditions Space Size Storage Street Pricing Security/Badging Labor Harmony Wage Ordinance Campaign Contributions Hours of Operations ACDBE Requirements Aggressive Economics Distribution and Delivery Design and Construction Inclement Weather/Emergency Operations

28 DBE Coordinator, Office of Business Diversity, Philadelphia International Airport DENEEN WILSON

29 ACDBE Certification ACDBE owner must: Own 51% or more of the firm Have training/experience in the field of business Control the day to day operations Contribute the capital needed to start the company with their own funds and credit Meet the personal net worth cap of $1.32 million Meet the Business size cap of $56.42 million in gross receipts Have an existing or pending contract at the airport

30 ACDBE Overview Airport Concession Disadvantaged Business Enterprises Operates under Federal Regulations (49 CFR parts 23 & 26) Certification of ACDBE s & DBE s in PA administered by Pennsylvania Unified Certification Program (PA UCP) Download applications for certification from the PA UCP website: Division of Aviation: Deneen Wilson DBE Coordinator Office of Business Diversity Phone: MarketPlace PHL, LLC: Chermaina Roundtree Compliance Manager Phone:

31 Compliance Manager, MarketPlace PHL, LLC CHERMAINA ROUNDTREE

32 21st Century Minimum Wage and Benefits Standard Chapter of the Philadelphia Code: New hourly minimum wage Full-time, part-time, temporary, or seasonal basis (including temporary, contracted, contingent workers and persons working through a temporary service, staffing or employment agency) Chapter of the Philadelphia Code: Minimum benefits requirement

33 Labor Harmony Subtenants are required to have a signed Labor Harmony Agreement ( LHA ) with any labor organization seeking to represent the employees of the Subtenant. Requirement for LHA is not applicable for: Subtenants which employ fifteen (15) or fewer employees Locally Owned Small Business Must be headquartered within the Philadelphia Metropolitan Statistical Area Employ thirty (30) or fewer employees at the airport Small Minority/Disadvantage Business Entity ( ACDBE ) Employs thirty-five (35) or fewer employees

34 Campaign Contribution Disclosure Subtenants are required to disclose: Campaign contributions to political candidates and incumbents who are running for, or currently serving office, anywhere in the Commonwealth of PA Any consultants/lobbyists used to assist in obtaining the sublease and their contributions All subcontractors that you intend to use Requests for money or anything of value from the City or Marketplace More general information can be viewed at:

35 Displaced Worker Program Online job portal Information for concession employees who lose employment due to cessation of some or all operations of a location Subtenants access job portal to fill vacancies during start-up of operations required to interview all displaced workers of same category in job portal until at least 50% of initial complement of employees are hired from job portal

36 Hours of Operation Compliance is required in the sublease Retail store hours 7 AM - 10 PM (or as determined by flight schedules) Food & beverage operating hours 45 minutes before the first flight 30 minutes after the last flight By concourse Reviewed monthly

37 Executive Vice President, MarketPlace Development MIKE DICOSOLA

PHL Overall 21 22 23 25 17 24 7 9 11 18 26 3 2 4 6 8 10 13 14

6 M 1 20 5 15 16 Terminal A - West 2015 ENPL 2.

38 PHL Overall Terminal E 2015 ENPL 1.6 M Terminal A - West 2015 ENPL 2.0 M Terminal A - East 2015 ENPL 1.9 M Terminal B 2015 ENPL 2.8 M Terminal C 2015 ENPL 3.0 M Terminal D 2015 ENPL 1.9 M

39 2015 Enplanements 2.0 M American Airlines British Airways Lufthansa Airlines Qatar Airways A West Made to Order Asian 768 sf ACDBE 35% 3 Specialty Retail or Grab & Go 174 sf ACDBE 50% 2 Made to Order Pizza or Mexican 718 sf ACDBE 35% 4 1 Bar/Restaurant 1,996 sf ACDBE 35%

40 2015 Enplanements 1.9 M A East American Airlines Spirit Airlines Bar/Restaurant 3,618 sf ACDBE 50% 6 Café 300 sf ACDBE 35% 5

41 2015 Enplanements 5.8 M American Airlines B/C Connector 9 Burger 849 sf ACDBE 35% Specialty Retail 2,858 sf 7 10 Asian Quick Serve 714 sf ACDBE 35% Specialty Retail 1,044 sf 11 Specialty Retail 593 sf 8 Specialty Retail 455 sf Specialty Retail 368 sf Specialty Retail 455 sf

42 2015 Enplanements 3.0 M Terminal C American Airlines Bar/Restaurant 3,409 sf ACDBE 35% Coffee 615 sf ACDBE 35%

43 2015 Enplanements 1.9 M Air Canada Alaska Airlines Delta Airlines Delta Connection United Airlines Terminal D Mexican Quick Serve 897 sf ACDBE 50% 17 Grab & Go 268 sf ACDBE 50% Sandwich 897 sf ACDBE 35% Snack 272 sf ACDBE 35%

44 2015 Enplanements 1.6 M Terminal E Frontier Airlines JetBlue Airways Southwest Airlines Grab & Go/Café 1,024 sf ACDBE 50% Coffee 400 sf ACDBE 35% Made to Order Pizza 870 sf ACDBE 50% Asian Quick Serve 795 sf ACDBE 35% Sports Bar/Restaurant 2,239 sf ACDBE 35% Bar/Restaurant 2,049 sf ACDBE 35% 26

45 Goals Provide best possible passenger experience Cutting edge brands and designs Innovative concepts Be inclusive Opportunity for local, regional and national concepts Local Chefs Local Concepts Opportunity for large, medium, and small operators Opportunity for ACDBE operators Transparency and open access Drive revenue and improve financial return to PHL Stimulate competition

46 Choosing a Tenant Get multiple offers on each space to create demand Establish market value for the space Ascertain highest and best use for the location Evaluate offers based on: 1. Use & Concept (innovative and new) 2. Economics (rent and capital investment) 3. Operator Experience and Successes 4. Financial Strength of Operator 5. ACDBE Participation 6. Store Design

47 Leasing Schedule Next Steps Leasing Schedule Dates Outreach Meeting 5/5/16 Responses Back from Outreach Participants 5/18/2016 Proposals out to Tenants 6/10/2016 Proposals due from Tenants 7/22/2016 Review and Decide on Recommendations for Each Space 9/6/2016 Leases To Selected Tenants 10/20/2016 Tenant Design Package Issued 10/13/2016 Tenants Under Construction 3/2017 8/2017 Openings 8/ /2017

48 Questions? THANK YOU!

PHL FOOD & SHOPS 2017 LEASING OUTREACH. May 9, 2017

PHL FOOD & SHOPS 2017 LEASING OUTREACH May 9, 2017 Clarence LeJeune Operating Partner, MarketPlace PHL, LLC and President & CEO, LeJeune and Associates, LLC AGENDA Opening Remarks Chellie Cameron, CEO,