May 5--The Board of Airport Commissioners on Monday put out a call for bids for companies wanting to operate shops and eateries in Terminals 4, 5, 7 and 8 at Los Angeles International Airport.
Officials offered five options that will allow concessionaires to bid for 22 stores and 20 restaurants covering nearly 71,000 square feet. The airport commission is expected to select the winning bids on Sept. 16, with the contracts set to last for 10 years.
"We have sized the packages to create opportunities for large and small companies," said Gina Marie Lindsey, executive director of Los Angeles World Airports, the agency that operates LAX.
Airport officials have said they hope to spotlight the region's culture and diversity by attracting more local stores and eateries to do business at LAX.
Companies that open shop at the airport will be required to invest at least $650 per square foot to refurbish their units, along with rental payments of 12 to 21 percent of their gross annual income.
LAX currently has 16 concession contracts with companies that provide more than 130 shops, restaurants and duty-free stores throughout the airport, generating more than $83 million in revenue during the last fiscal year.
LAX has significantly less capacity for stores and restaurants than most major airports across the country, offering only 5.1 square feet of concession space for every 1,000 people passing through the airport with an average spending
of $7.85 per passenger, according to a report released last fall.
Concession contracts for Terminals 1, 3 and 6 are expected to be developed this year, while plans for Terminal 2 and the Tom Bradley International Terminal will be released in 2010.