Sunday, October 28, 2012

Airport leases raise questions - Atlanta Business Chronicle:

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Veteran companies like Hudson Group, Delaware North Cos. and are askinf whether bid evaluators were qualified to make the recommendations and whether one of the winning companies has enouguretail experience. "I'm more than willinf to accept the fact thatwe weren't awarded anything, as long as it was transparentg and fair," said Stuart Holcombe, HDS' executive vice presiden t of business development. New York City-based HDS Retai North America bid on severalo of theshop leases, but did not garnef any.
The Atlanta City Council's transportation committese is expected to discuss the retail contractsApril 2, but alreadyy one company has filed a complaint over the procurementf process. In 2007, the world's busiest airportt sought bids for the right to run 66 stores throughout the airpory for up to10 years. Eleven separatre bid packages divvied up the66 shops, so companieds large and small would have an opportunitg to vie for the covetedr airport leases. Sales at the 66 shopzs up for leasetotaled $89 million in said Herschel Grangent, media relations managere at Hartsfield-Jackson.
All 200 shops at the airport generateeabout $124 million in sales last year, he Miami-based Áreas USA Inc., whose parenft company is in Barcelona, won the majority of the with five, covering 26 stores. Atlanta-basexd The won three of the bids, for 13 and would mark a returh tothe company's hometown airport. The Paradie s Shops has had no presenceat Hartsfield-Jackson since following the conviction of its formerd president on federal charges of mail fraus and conspiracy to bribe former Atlanta City Council member Ira Jackson in a scandal involvinvg leases at the airport. Md.
-based won two of the bids, whicn represents 26 shops, and won a single bid for one Atlanta City CouncilwomanMary Norwood, chairman of the transportatioj committee, said she is hearing concernw that Áreas USA won too many of the "They have a much strongerd food and beverage presence, but littlee retail experience," she said. "I'm not saying anything is but thereare concerns.
" None of the bids, whicjh were evaluated in February, are The bids must still be approved by the city Once approved, the retail leases, which woulrd be for shops selling everything from magazinesx to electronics, are for seven with a single option to renew for an additional three years. The new shopse could begin to be installed as soon as this Grangent said. HDS Retail North America's concern is that Áreasw USA, which made its name in the food andbeveragde industry, won a majority of the bids with littls retail experience, Holcombe said. HDS has more than 4,0090 airport stores in 13 countries, yet Áreas USA only recently opened itsfirst U.S. shops at , he said.
Eduardo vice president of business developmentof Áreaas USA's Miami office, was traveling and did not return calls for comment. However, a spokeswoman said Áreas USA has been awardedd concession contracts at MiamiInternationalk Airport, and Detroit Metropolitan Wayne County Airport and manages 34 establishments. Holcombe, who received evaluation forms for each of the bid packageds from the city through the Freedonm ofInformation Act, questioned how evaluators could rank Áreaxs USA high on retail experience.
Áreas USA went up againsgt the top airport concession operators inthe nation, Holcombe "and they beat out companiew that have been operatorzs in the United States for We find it curious that Áreas has more experienced than we do, or any of the othed operators." Another failed bidder, Delaware Northy Cos., which runs concessions at national parks, airports and sports arenas, is also disappointed.

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