Phoenix Sky Harbor International Airport West Ground ... · Phoenix Sky Harbor International...
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Phoenix Sky Harbor International Airport West Ground Transportation Center Parking Concession and Hotel Development Concession Opportunity May 22, 2018
Transcript of Phoenix Sky Harbor International Airport West Ground ... · Phoenix Sky Harbor International...
Phoenix Sky Harbor International Airport
West Ground Transportation CenterParking Concession and Hotel Development
Concession Opportunity
May 22, 2018
Participants
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City of Phoenix Aviation
Department
James E. Bennett, A.A.E., Director of Aviation Services
Charlene Reynolds, Assistant Aviation Director and Procurement Officer
Jay DeWitt, C.M., Deputy Aviation Director
City of Phoenix Community and
Economic Development Department
Eric Johnson, AICP, Deputy Economic Development Director
Agenda
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1. Introduction and Airport Overview
2. Phoenix Economic Overview
3. Airport Parking Opportunity Overview
4. Airport Hotel Opportunity Overview
5. Project Progress to Date and Site Overview
6. Procurement Overview
7. Questions and Answers
8. Site Tour
WELCOME AND OVERVIEWJames E. Bennett, A.A.E, Director of Aviation Services
City/Airport Structure
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The City of Phoenix owns and operates Phoenix Sky Harbor International Airport (PHX) and two general aviation airports, Phoenix Deer Valley Airport and Phoenix Goodyear Airport
The Airports are operated as a self-supporting business enterprise by the Aviation Department
The Phoenix City Council adopts ordinances establishing rates and charges to be paid by tenants and users of the Airports
The City Manager, appointed by the City Council, is responsible for all CityDepartments, including the Aviation Department
City/Airport Organizational Structure
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Mayor and City Council
Municipal Court
Assistant City Manager
Deputy City Manager
Acting Deputy City Manager
City Clerk Information Technology Aviation Arts & Culture Convention
CenterBudget & Research
City Manager
Deputy City Manager
Deputy City Manager
Air Service Is Critical for Phoenix MSA
Geographic location of Phoenix results in a heavy reliance on airline travel Phoenix-Mesa Gateway Airport is the only other commercial service airport in
the MSA and is located 30 miles SE with 20 average daily departuresRoad miles from the Airport to:
Tucson 117
Las Vegas 292
Los Angeles 371
Albuquerque 477
Salt Lake City 656
Denver 809
Dallas/Fort Worth 1,056
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Airport Capital Improvement Program
FY 2017-2023 Capital Investment Spending ($ millions)
Capital Improvement Program
Total Costs(including prior spending)
Terminal 3 Modernization $590Terminal 4 S1 Concourse 310PHX Sky Train Stage 2 745Other Terminal & Airfield Improvements 430TOTAL $2,075
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11Terminal 3 Modernization Program
Terminal 3 Modernization
In lieu of a major investment in Terminal 2, the Terminal 3 Modernization program was developed Improved Terminal 3 will greatly enhance Airport revenue producing opportunitiesModular approach that delays debt financings until demand dictates, and design and construction risks are
mitigated Through May 2018, Terminal 3 development on-schedule and on-budget Developed based on LEED Silver Standard
Phase 1
Terminal Processor
Phase 2
South Concourse
Phase 3
North Concourse
Phase 1Complete Renovation of Central Processor
Phase 2New South Concourse
Phase 3Renovation of North Concourse and addition of concessions node
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Terminal 4 S1 Concourse Addition and Facility Improvements
A new $310M concourse with 8 gates is planned for Terminal 4, which Southwest Airlines has committed toutilize This project, tentatively
scheduled to open in Q1 2022, will complete the full build-out of Terminal 4
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PHX Sky Train Stage 2 – Rental Car Center Station
RCC Station West GTC Station Future Taxiway Crossings Future Terminal Station
PHX Sky Train Stage 2 Major Components
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2016 2017 2018 2019 2020 2021 2022
Facilities Design
OpeningMid 2022May 2018
Facilities Construction
System Design Train System Installation
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System Testing
PHX Sky Train Stage 2 Milestone Schedule
ECONOMIC OVERVIEWEric Johnson, AICP, Deputy Economic Development Director
Phoenix is #1in terms of growthin finance industry jobs,– Forbes, 2014
Phoenix Metro intop 10 forStartup Activity– Kaufmann Index, 2016
CBRE’s Tech-Thirsty list: Phoenix
No. 2 high-techjob growth– CBRE, 2016
Phoenix Sky Harbor
#1 for bestairports– USA Today,2016
Phoenix 11thin best
big cities to live
– Business Insider, 2016
Top 20 Metro in America for Transit Accessibility– Access Across America, 2014
Phoenix (Phx-Mesa-Glendale) is the#1 city for swiping financial jobs from the big boys on Wall Street– Forbes, 2014
Phoenix ranked11th
leadingtech market– CBRE, 2016
Phoenix ranked #4best
metro foryoungprofessionals– Forbes, 2017
Phoenix ranked 10thamong
top 25 hottestcities forstartups– Fortune, 2016
Phoenix #8in the top 10 cities for
future job growth– Forbes, 2016
Arizona State University ranked
#1 in U.S.forInnovation2nd year in a row– US News, 2016
Phoenix gained 10 places to
#17 best cityin the U.S. for Jobs– Forbes, 2016
Arizona ranked among the
top 5 stateswith the largest job growth of2014– AZ Tech Beat, 2014
Phoenix ranked6thfor Best
City for Sports Travel– Hotels.com & SeatGeek, 2015
Phoenix City/Metro Rankings
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1.6 M 800,989 2.3 M
Population Workforce RegionalWorkforce
33.4
MedianAge
4.1%
Unemployment Rate
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Demographics
Sources: U.S. Census – 2016 ACS 1yr EstimatesBLS – March 2018
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#1 in the Nation for Entrepreneurial Activity (Fast Company)
#2 in High-Tech Software/Services Job Growth (CBRE)Top 10 Major Employers1. Banner Health – Health Care2. Honeywell – Aerospace3. American Express – Financial4. Wells Fargo – Financial5. Bank of America – Financial6. Fry’s Food Stores – Retail7. JP Morgan Chase – Financial8. Walmart – Retail9. U Haul – Advanced Business Services 10. Amazon – e-Commerce
Large Diverse Employment Base
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Target Industries: Advanced Business Services
Emerging Technologies
International Business/Trade
Manufacturing
Bio/Life Sciences
Software
Job Creation
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318%
Best metro for Young Professionals(3)
Leading Tech Market(4)
For high-tech job growth(2)
#4#2
#11
Increase in Central City technology companies(1)
By the Numbers
Technology Growth
Sources:1 – City of Phoenix, CEDD (2012-2017)2 – CBRE, Tech Thirty 20163 – Forbes 20174 – CBRE, 2016 Scoring Tech Talent
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$14.4 B.$14.3 B.$14.3 B. $13.8 B.$12.7 B.Mexico
CanadaSouth KoreaChinaUK
Electronics ProductsTransportation EquipmentElectrical EquipmentMachineryFabricated Metals
Exports 20.3 % 2013-2017
Top 5 Export Countries
Top 5 Export Commodities
Trade with Mexico is up more than 150% since 2010 to $8.04B.
International Business Development
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Phoenix’s Competitive Advantage
Aerospace and Defense
Big Data
Circular Economy / Sustainability
Cybersecurity
Entrepreneurship
Financial Services
Healthcare / Bioscience
Software Development
Web Development
Phoenix’s Competitive Advantage
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Phoenix Has a Positive Outlook
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Phoenix population of 1.6 million; 64% growth since 1990 Robust real estate recovery; median sales prices up 10.0%
(Feb 2018 vs Feb 2017)1
Phoenix MSA represents: 67% of the State’s population2
70% of the State’s employment3
70% of Arizona’s personal income4
4.1% unemployment rate3
Sources:1 – Zillow, Feb 2018 2 – U.S. Census, 2016 ACS 1year estimates3 – U.S. Bureau of Labor Statistics, March ‘184 – U.S. Bureau of Economic Analysis
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Tourism and Forward Major Event Calendar
Phoenix Convention Center activity for the remainder of 2018: 30 Groups (over 1,000 attendees) 101,550 Attendees 164,318 Contracted Room Nights
Phoenix is home to Mega Events (2015-2017) $1.3 billion economic impact $1.7 million visitors to downtown Phoenix
Upcoming Major Events 2019 WWE Royal Rumble 2023 Super Bowl (bidding) 2023-2026 NCAA Final Four (bidding)
Sources:ASU’s WP Carey School of Business & Phoenix Convention Center
PARKING OVERVIEWJay DeWitt, C.M., Deputy Aviation Director
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Parking Opportunity Overview
Sky Harbor currently provides approximately 22,500 public parking spaces and 3,500 employee spaces
The public parking spaces are divided between premium / terminal garage and economy products
Approximately 13,000 employees are permitted to park in designated employee lots throughout the airport
Total gross parking revenue (gross = public + employee, before taxes) for Fiscal Year 2016-17 was $86.1 million on approximately 3 million public transactions
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Historical and Forecast Traffic
Source: City of Phoenix Aviation Department, 2017 Bonds Official Statement (2017 OS).
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Recent Historical Traffic by TypeBy type of passenger
Fiscal Year OriginatingQuarter Resident Visitor Total Connecting Total
2016 6,147 7,391 13,538 8,517 22,056Jul-Sep'15 1,509 1,351 2,860 2,508 5,368Oct-Dec 1,506 1,871 3,378 2,068 5,445Jan-Mar'16 1,396 2,279 3,675 1,881 5,557Apr-Jun 1,736 1,890 3,626 2,060 5,686
2017 6,558 7,827 14,385 7,435 21,820Jul-Sep'16 1,621 1,468 3,088 1,983 5,072Oct-Dec 1,638 1,982 3,620 1,767 5,387Jan-Mar'17 1,483 2,368 3,851 1,679 5,531Apr-Jun 1,817 2,009 3,826 2,005 5,831
2018Jul-Sep'17 1,671 1,497 3,168 2,014 5,183Oct-Dec'17 1,688 2,089 3,777 1,696 5,472
2015-2016 6.9% 5.8% 6.3% (2.7)% 2.6%Jul-Sep'14-15 6.6 7.7 7.1 6.8 7.0Oct-Dec 6.2 5.3 5.7 (1.0) 3.1Jan-Mar'15-16 7.3 4.1 5.3 (4.7) 1.7Apr-Jun 7.5 6.9 7.2 (12.0) (0.7)
2016-2017 6.7% 5.9% 6.3% (12.7)% (1.1)%Jul-Sep'15-16 7.4 8.7 8.0 (20.9) (5.5)Oct-Dec 8.7 5.9 7.2 (14.6) (1.1)Jan-Mar'17 6.2 3.9 4.8 (10.7) (0.5)Apr-Jun 4.7 6.3 5.5 (2.7) 2.5
2018Jul-Sep'17 3.1 2.0 2.6 1.6 2.2Oct-Dec'17 3.1 5.4 4.3 (4.0) 1.6
Resident passengers (originating trips locally at PHX) initiate approximately 6.5 million trips per year
PHX is a “Top 15” resident market when compared to other U.S. airports
Recent resident passenger growth has been consistent and strong, exceeding forecast expectations
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PHX Sky Harbor Parking Facilities
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PARKING FACILITYPUBLIC SPACES
EMPLOYEE SPACES TOTAL SPACES YEAR BUILT
Public ParkingTerminal 2 2,201 2,201 1962Terminal 3 1,831 317 2,148 1979Terminal 4 6,406 453 6,859 1990Terminal 4 High Profile Lot 189 189 1990East Economy Surface Lot 3,681 3,681 1998East Economy Garage A 2,338 2,338 2001East Economy Garage B 3,509 3,509 2006West Economy Lot 1,368 192 1,560 1995
Employee Parking44th St Employee Lot 2,246 2,246 2014Terminal 4 RAC 591 591 1990South Air Cargo 209 209 1997South Air Cargo #2 187 187 1997West Air Cargo 216 216 1990
PHX Sky Harbor Parking Facilities
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Parking Rates – 10 Year History
All Locations Terminal Garages EconomyFiscal Year Per Hour Δ Daily max Δ Covered Δ Uncovered Δ
2008 $4.00 n.a. $20.00 n.a. $10.00 n.a. $8.00 n.a.2009 4.00 - 25.00 5.00 10.00 - 8.00 - 2010 4.00 - 25.00 - 10.00 - 8.00 - 2011 4.00 - 25.00 - 11.00 1.00 9.00 1.00 2012 4.00 - 25.00 - 11.00 - 9.00 - 2013 4.00 - 25.00 - 11.00 - 9.00 - 2014 4.00 - 25.00 - 11.00 - 9.00 - 2015 4.00 - 25.00 - 11.00 - 9.00 - 2016 4.00 - 25.00 - 11.00 - 9.00 - 2017 4.00 - 25.00 - 11.00 - 9.00 -
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Parking Rates – November 2017 Increase
In November 2017, the Airport implemented rate increases at each of its parking facilities
Prior Rate ($) Current Rate ($) Δ ($)
Terminal 2 Garage 25.00 26.00 1.00
Terminal 3 Garage 25.00 27.00 2.00
Terminal 4 Garage 25.00 27.00 2.00
East Economy Garage 11.00 14.00 3.00
East Economy Surface 9.00 12.00 3.00
Terminal 2 Economy (Covered) 11.00 12.00 1.00
Terminal 2 Economy (Uncovered) 9.00 10.00 1.00
West Economy 7.00 7.00 -
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Parking Revenue and Transactions
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
$7,000,000
$8,000,000
Revenue
FY 2017 FY 2018
0
50,000
100,000
150,000
200,000
250,000
300,000
Transactions
FY 2017 FY 2018
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Parking Revenue and Transactions
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018Est.
Terminal Revenue Economy Revenue Resident-Visitor
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018Est.
Terminal Transactions Economy Transactions Resident-Visitor
Revenue Transactions
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Parking Data: East Economy Surface Lot
0
50K
100K
150K
200K
250K
300K
350K
2011 2012 2013 2014 2015 2016 2017
EE Surface Lot Transaction Count
Meet and Greet Daily
0
2.0M
4.0M
6.0M
8.0M
10.0M
12.0M
14.0M
2011 2012 2013 2014 2015 2016 2017
EE Surface Lot Revenue
Meet and Greet Daily
0K
0K
0K
1K
10K
0 24 48 72 96 120 144 168
Tran
sact
ion
Coun
t (Lo
g Sc
ale)
Duration (hour)
EE Surface Lot Transaction Count by Duration
2014 2015 2016 2017
0
500
1000
1500
2000
2500
3000
3500EE Surface Lot Occupancy by Month
2am Average 12pm Average
Spac
es O
ccup
ied
EE Surface Lot Occupancy by Hour of Week
Average Peak
Mon Tue Wed Thu Fri Sat Sun
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Parking Data: Terminal 4
0
200K
400K
600K
800K
1.0M
1.2M
1.4M
1.6M
1.8M
2011 2012 2013 2014 2015 2016 2017
Terminal 4 Transaction Count
Meet and Greet Daily
0
5.0M
10.0M
15.0M
20.0M
25.0M
30.0M
35.0M
40.0M
2011 2012 2013 2014 2015 2016 2017
Terminal 4 Revenue
Meet and Greet Daily
0K
0K
0K
1K
10K
100K
1.0M
0 24 48 72 96 120 144 168Tran
sact
ion
Coun
t (Lo
g Sc
ale)
Duration (hour)
Terminal 4 Transaction Count by Duration
2014 2015 2016 2017
0
1000
2000
3000
4000
5000
6000
7000Terminal 4 Occupancy by Month
2am Average 12pm Average
Spac
es O
ccup
ied
Terminal 4 Occupancy by Hour of Week
Average PeakMon Tue Wed Thu Fri Sat Sun
HOTEL OVERVIEWJay DeWitt, C.M., Deputy Aviation Director
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Hotel Development Opportunity Overview
RFQ also seeks to identify Respondents qualified to undertake the Hotel Development Concession on a design, build, finance, operate, and maintain basis. The Hotel Development Concession will be located at the northwest corner of the West GTC site An Upper Upscale rated hotel, as categorized by STR chain
scale, with a minimum of 200 keys
Meeting room space
A street-level, public facing restaurant/retail component
Additional office, restaurant/retail, or other commercial development
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61.5
%
68.5
%
66.8
%
70.3
%
67.8
%
66.7
%
62.3
%
64.3
%
69.8
%
68.0
%
72.4
%
66.4
%
69.2
%
64.1
%
65.0
%
70.2
%
69.4
%
73.1
%
67.0
% 68.6
%
66.1
%
55%
60%
65%
70%
75%
Mesa/Chandler
Tempe Scottsdale PhoenixAirport
PhoenixCentral
PhoenixWest
Black CanyonCorridor
Occ
upan
cy
2015 2016 2017
Airport Hotel Submarket – Occupancy
Source: Smith Travel Research
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$95.
35
$99.
75
$180
.42
$101
.87
$149
.99
$90.
47
$70.
07
$96.
52
$101
.30
$183
.87
$102
.27
$152
.41
$94.
17
$74.
18
$100
.80
$104
.16
$190
.06
$104
.26
$155
.56
$101
.49
$76.
81
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
Mesa/Chandler
Tempe Scottsdale PhoenixAirport
PhoenixCentral
PhoenixWest
Black CanyonCorridor
Aver
age
Dai
ly R
ate
2015 2016 2017
Airport Hotel Submarket – ADR
Source: Smith Travel Research
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$58.
82 $68.
35
$120
.60
$71.
60
$101
.68
$60.
31
$43.
64
$62.
04 $70.
62
$124
.98
$74.
02
$101
.16
$65.
14
$47.
55
$63.
03 $73.
08
$130
.06
$76.
20
$104
.23
$69.
59
$50.
75
$0
$20
$40
$60
$80
$100
$120
$140
Mesa/Chandler
Tempe Scottsdale PhoenixAirport
PhoenixCentral
PhoenixWest
Black CanyonCorridor
Rev
enue
Per
Ava
ilabl
e R
oom
2015 2016 2017
Airport Hotel Submarket – RevPAR
Source: Smith Travel Research
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Airport Hotel Submarket – Available Rooms
4,797
4,845 4,8454,834 4,834 4,834
4,872
4,500
4,600
4,700
4,800
4,900
5,000
2011 2012 2013 2014 2015 2016 2017
Source: Smith Travel Research
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Airport Hotel Submarket – Hist. Occupancy
57.8% 57.6%
61.5%
64.1%
70.4%
72.4%73.1%
50%
54%
58%
62%
66%
70%
74%
78%
2011 2012 2013 2014 2015 2016 2017
Source: Smith Travel Research
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Airport Hotel Submarket – Hist. ADR
$87.50 $87.75 $87.18
$92.33
$101.97 $102.47$104.26
$50
$65
$80
$95
$110
2011 2012 2013 2014 2015 2016 2017
Source: Smith Travel Research
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Airport Hotel Submarket – Hist. RevPAR
$87.50 $87.75 $87.18
$92.33
$101.97 $102.47$104.26
$50
$65
$80
$95
$110
2011 2012 2013 2014 2015 2016 2017
Source: Smith Travel Research
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Site Attributes
Parcels purchased in/around 1997 Environmental Phase I complete Environmental Phase II underway Zoned A-1 (light industrial)
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Site Attributes
27” Sewer Line currently bisects parking development site City will relocate and maintain existing service
PROCUREMENT OVERVIEWCharlene Reynolds, Assistant Aviation Director
Transparency Policy
NO CONTACTREQUIREMENT
Section 43-34 & 43-36 of the Phoenix City Code
RESPONDENTS THAT VIOLATE THIS POLICY
WILL BE DISQUALIFIED
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Restricted Parties
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No Respondent or Team Member may discuss matters associated with this RFQ and/or either Project with any Restricted Party, other than as contemplated under this RFQThe following are the “Restricted Parties”: Frasca & Associates, LLC Jacobs LeighFisher Nixon Peabody LLP Squire Patton Boggs (US) LLP
LATE RESPONSES WILL NOT BE ACCEPTED!
June 28, 20182:00PM Local Phoenix Time
City of Phoenix Aviation Department
2485 East Buckeye Road, Phoenix, AZ 85034
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Response Submittal Location
Deadlines
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Written Questions and Intent to Submit by May 29, 2018 Due: 2:00PM Local Phoenix Time Email: [email protected]
Answers available by June 6, 2018 https://www.phoenix.gov/solicitations/1445
Equal Opportunity Department Business Diversity Programs
The City of Phoenix strives to advance economic growth of businesses through its Business Diversity Programs
The City encourages the participation of certified firms throughout all phases of contracts
Participation for certified firms performing a Commercially Useful Function in their certified scope of work
REMEMBER confirm certification status of a firm (database is updated daily)
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Equal Opportunity Department SBE/DBE/ACDBE Certification
To locate certified firms visit:https://phoenix.diversitycompliance.com
Select:City of Phoenix Directory of SBE Certified Firms
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April May June July August
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Procurement Timeline
April:
April: 16 Issue RFQ
May:
May: 18 Deadline to register for Mandatory Conference and Tour
May: 22 Mandatory Conference and Tour
May: 29 Deadline for Submittal of Questions
May: 29 Deadline for Submittal of Intent to Respond Form
June:
June: 6 City’s Response to Questions
June: 28 Deadline for submittal of Statement of Qualifications
July:
Week of July 23rd Interviews (If Necessary)
August:
Announcement of Qualified Respondents
Conference& Tour
Interviews (If Necessary)
City’s Response to Questions
Announcement of Qualified
Respondents
Deadline for Submittal of Responses
Deadline for Questions &
Intent to Respond Form
Issuanceof RFQ
Other Information
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No questions on the tour! All City responses will be published via an Addendum Arizona Contractor’s Requirement Firms not meeting minimum qualifications will be deemed non-
responsive
Questions?
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Disclaimer
This presentation is furnished for informational purposes only. Neither the City nor the Aviation Department makes any representation or warranty as to the accuracy, completeness or suitability of the information contained herein. Nothing in this presentation, or stated on May 22, 2018, will in any way modify the Request for Qualification (the “RFQ”) issued on April 26, 2018. Any responses provided by the City, the Aviation Department or their representatives to questions on May 22, 2018 may not be relied upon (unless such questions are submitted in writing and the Aviation Department provides written responses in accordance with Section I.C of the RFQ).
