1. March 26, 2014 Spring Concessions Leasing Opportunities Outreach Forum

2. Clarence LeJeune Regional Vice President MarketPlace Development 3. Agenda Opening Remarks Recap of Fall Outreach Meeting and Phase 1 & Phase 2 Leasing Overview Dulles International and Reagan National Airports Phase 3 Leasing Opportunities Airport Concession Disadvantaged Business Enterprise (ACDBE) Certification Question / Answer Session 4. Metropolitan Washington Airports Authority Jack Potter, President & CEO Steve Baker, Vice President of Business Administration Sandi Greene, Director of Concessions 5. Paul McGinn President MarketPlace Development 6. Susan Drury Leasing Manager MarketPlace Development 7. Recap of Phase 1 and 2 Leasing 8. Dulles International Phase 1 Brands 9. luvnberry 10. The Firkin & Fox 11. Tumi 12. Swarovski 13. Au Bon Pain 14. brb (be right burger) 15. Washingtonian 16. Bistro Atelier 17. Dulles International Phase 2 Luxury Brands 18. Dulles International Phase 2 Brands CAPITOL CITY INK WASHINGTON INFORMER D.C. CRAFT Brews 19. Dulles International Phase 1 and Phase 2 CAPITOL CITY INK CAPITOL CITY INK CAPITOL CITY INK CAPITOL CITY INK WASHINGTON INFORMER D.C. CRAFT Brews 20. Reagan National Phase 1 Brands 21. Terminal A 22. Terminal A 23. Vineyard Vines 24. Spanx 25. Legal Sea Foods 26. Bens Chili Bowl 27. Lacoste 28. Hudson News 29. Forbes 30. Reagan National Phase 2 Brands grille dist rict 31. Reagan National Phase 1 and Phase 2 32. Media Clips from Phase 2 Leasing The Metropolitan Washington Airports Authority (MWAA) has selected a joint venture between OTG and Baldi Management Group (BMG) to manage the Terminal A concessions development at Ronald Reagan Washington National Airport. OTG to bring sweeping retail and restaurant changes to Reagan Airport 33. Accomplishments to Date 84 units leased 28 units under construction Improved merchandise mix Mix of national, regional, and local brands ACDBE participation in Phase 1 and Phase 2 selections Increased revenue to MWAA 34. Overview 35. Manager for the food & beverage and retail programs at Dulles International and Reagan National Airports Responsibilities include: Leasing Marketing Management Construction coordination 36. Goals Best possible passenger experience Cutting edge brands Innovative concepts Inclusion Opportunity for national, regional and local concepts Opportunity for large, medium, and small operators Opportunity for ACDBE operators Improve financial return to MWAA 37. IAD Overview 135 gates 135 domestic & international destinations Over 62 non-stop departures to 36 international cities 21.9 million passengers in 2013 18,000+ employees 66% increase in international enplanements in the last 10 years 38. 76% of passengers spend more than one hour in the airport prior to departure 61% of passengers spend more than 90 minutes at the airport prior to departure Median income - $92,810 IAD Overview Passenger Demographics 39. DCA Overview 44 gates 409 daily departures 94 non-stop destinations 20.4 million passengers in 2013 (highest since opening) 7,000+ employees 40. 60% of passengers spend more than one hour in the airport prior to departure 42% of passengers spend more than 90 minutes at the airport prior to departure Median income - $96,110 DCA Overview Passenger Demographics 41. IAD and DCA Overview 2013 Sales and Enplanements IAD Sales: $107.2 Million Enplanements: 10.9 Million Sales per Enplanement: $9.85 DCA Sales: $94.6 Million Enplanements: 10.2 Million Sales per Enplanement: $9.29 42. IAD Overview Sales PSF (by Category) Over 100 shops 2013 sales per square foot: $1,169 $1,240 $1,317 $922 $1,169 $200 $600 $1,000 $1,400 43. $1,641 $2,822 $757 $1,455 $200 $600 $1,000 $1,400 $1,800 $2,200 $2,600 $3,000 DCA Overview Sales PSF (by Category) Over 80 shops 2013 sales per square foot: $1,455 44. Unique Airport Conditions 45. Unique Airport Conditions Space size Aggressive economics Hours of operation Storage Distribution and delivery Design and construction ACDBE requirements Security 46. IAD Overview Hours of Operation (Average) Location Food & Beverage Hours* Retail Hours* Main Terminal 24 Hours 5:00 AM 10:00 PM Concourse A 6:00 AM 10:00 PM 6:00 AM 9:00 PM Concourse B 5:00 AM 9:00 PM 6:00 AM 9:00 PM Concourse C 5:00 AM 10:00 PM 7:00 AM 9:30 PM Concourse D 5:00 AM 10:00 PM 7:00 AM 9:30 PM *Select Retail, Newsstands and Food & Beverage locations are open 24 hours. All hours are subject to change based on flight schedules. 47. DCA Overview Hours of Operation (Average) Location Food & Beverage Hours* Retail Hours* National Hall 6:00 AM 9:00 PM 7:00 AM 8:00 PM Terminal A 5:00 AM 9:00 PM 7:00 AM 8:00 PM Terminal B 5:00 AM 9:00 PM 7:00 AM 8:00 PM Terminal B/C 5:00 AM 9:00 PM 7:00 AM 8:00 PM Terminal C 5:00 AM 9:00 PM 7:00 AM 8:00 PM *Select Retail, Newsstands and Food & Beverage locations are open 24 hours. All hours are subject to change based on flight schedules. 48. Marketing Program 49. Barricade Graphics 50. Marketing Events 2013 Presidential Inauguration 51. Marketing Events National Cherry Blossom Festival 52. Marketing Events #BumpedintoObama 53. Marketing Events Holiday Photos and Gifts on the Fly 54. Customer Service Program Training and Consultations 55. Retail Merchandising Unit (RMU) / Kiosk Program 56. Retail Merchandising Unit (RMU) / Kiosk Program Re-design of RMU / Kiosk Program at both airports New state-of-the-art fixtures Focus on unique needs of each airport Opportunity for: Small businesses Entrepreneurs Short-term commitment Low capital Incubation to permanent tenant Apply online 57. New RMU Design 58. Michael DiCosola Executive Vice President MarketPlace Development 59. Phase 3 Leasing Opportunities IAD and DCA 60. Dulles International Phase 3 Opportunities by Category 3 Bar / Restaurant Locations 2 Quick Serve Locations 2 Retail Locations 4 Newsstand Locations with 2 Retail Locations 61. CONCOURSE A 2013 Enplanements: 2,953,687 CONCOURSE B 2013 Enplanements: 2,626,340 Phase 3 Opportunities, Concourses A & B Dulles International 10: Food & Beverage 3,016 SF 8: Food & Beverage 1,212 SF 9: Food & Beverage 2,270 SF 62. 1: Food & Beverage 1,105 SF 3: Retail 316 SF 4: Retail 625 SF 5: Food & Beverage 2,270 SF D.C. CRAFT Brews CONCOURSE C 2013 Enplanements: 3,027,069 CONCOURSE D 2013 Enplanements: 2,009,514 Phase 3 Opportunities, Concourses C & D Dulles International 63. Dulles International Phase 3 News Package 4 Newsstand Locations and 2 Retail Locations Achieved sales in excess of $6.3M in 2013 Locations in Concourses A, B, C, and the Main Terminal 64. CAPITOL CITY INK CAPITOL CITY INK CAPITOL CITY INK CAPITOL CITY INK WASHINGTON INFORMER 2: News 149 SF 6: News 212 SF 7: News 2,041 SF 13: News 493 SF 12: Retail, 902 SF 11: Retail, 520 SF Phase 3 News Package Dulles International 65. Phase 3 Opportunities Dulles International CAPITOL CITY INK CAPITOL CITY INK CAPITOL CITY INK CAPITOL CITY INK WASHINGTON INFORMER D.C. CRAFT Brews 1: Food & Beverage 2: News 3: Retail 4: Retail 5: Food & Beverage 6: News 10: Food & Beverage 7: News 8: Food & Beverage 9: Food & Beverage 13: News 11: Retail 12: Retail 66. Reagan National Phase 3 Opportunities by Category 3 Bar / Restaurant Location 2 Retail Locations 2 Quick Serve Locations 67. Phase 3 Opportunities, Pier Locations Reagan National 1: Food & Beverage 1,329 SF 2: Food & Beverage 751 SF 3: Food & Beverage 1,541 SF 4: Food & Beverage 970 SF 5: Food & Beverage 1,537 SF North Pier 2013 Enplanements: 4,115,960 Center Pier 2013 Enplanements: 1,977,439 South Pier & Connector 2013 Enplanements: 2,591,272 68. Phase 3 Opportunities, National Hall Reagan National 6: Retail 976 SF 7: Retail 807 SF Total DCA 2013 Enplanements: 10,185,305 69. 1: Food & Beverage 1,329 SF 2: Food & Beverage 751 SF 3: Food & Beverage 1,541 SF 4: Food & Beverage 970 SF 5: Food & Beverage 1,537 SF 6: Retail 976 SF 7: Retail 807 SF Phase 3 Opportunities Reagan National 70. Leasing Process 71. Leasing Goals Stimulate competition Drive revenue Get innovative concepts and best operators ACDBE participation and local businesses Transparency and open access 72. Tenant outreach Create a list of interested tenants for different opportunities Proposals sent to interested / qualified parties Counter proposals Evaluate counters and negotiation MWAA approval Offer lease Leasing Process 73. Choosing a Tenant How do you choose a tenant for the airport? It is our practice to get multiple offers on each space to create demand, establish a market value for the space, and ascertain the highest and best use for the location. We then evaluate the offers based on the following: Use & Concept (innovative and new) Economics (rent) Operator Experience and Success Financial Strength of Operator ACDBE Participation Store Design Investment 74. Terry Woodson Assistant Manager, Concessions Outreach Compliance Metropolitan Washington Airports Authority 75. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y Airport Concession Disadvantaged Business Enterprise (ACDBE) Program 76. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y Airport Concession Disadvantaged Business Enterprise (ACDBE) Program 85 Federally required program that is locally implemented Pertains to concession activities of airports receiving Federal financial assistance from Federal Aviation Administration (FAA) Intended to ensure nondiscrimination in the award and administration of concession opportunities and create a level playing field on which ACDBEs can compete fairly for concession opportunities 77. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y Code of Federal Regulations 86 49 CFR Part 26 49 CFR Part 23 78. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y Equal Opportunity Programs (EOP) Department 87 The EOP Department is responsible for the implementation of the Airports Authoritys ACDBE Program in accordance with 49 CFR Parts 26 and 23 as amended EOPs primary ACDBE responsibilities: Outreach Certification Compliance 79. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y ACDBE Basic Eligibility Requirements 88 51% owned and controlled by socially and economically disadvantaged individual(s) Disadvantaged owner(s) must be U.S. citizen(s) or lawfully admitted permanent resident(s) of the U.S. Firm must meet ACDBE small business size standard, generally, $56.42 million in average annual gross receipts (3 year average). Affiliates are included. Firm must be organized as a for-profit business 80. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y Presumptive Disadvantaged Groups (Rebuttable) 89 African Americans Hispanic Americans Subcontinent Asian Americans Native Americans Asian-Pacific Americans Women 81. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y Burden of Proof 90 Ownership (documentable proof) Management Control (daily control) Owner(s) Personal Net Worth is below $1.32 million (after allowable adjustments) Firm meets ACDBE size standards (gross receipts or number of employees) 82. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y ACDBE Certification Process 91 Home state ACDBE certification first Submit complete DBE Uniform Certification Application Submit all applicable supporting documents (15-25 documents) Site visit/interview with principal owner(s) Request for additional information/clarification (if necessary) Render final decision (within 90 days of receipt of full application, including additional requested information) 83. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y ACDBE Allowable Participation 92 ACDBE participation may be achieved through the following methods: Direct lease with ACDBE Sublease or subcontract with ACDBE Joint Venture with ACDBE(s) 84. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y Joint Ventures Association of an ACDBE firm and one or more other firm(s) Carry out a single, for profit business enterprise Parties combine their property, capital, efforts, skills, and knowledge ACDBE is responsible for a distinct, clearly defined portion of the work of the contract ACDBE share of capital contribution, control, management, risks, and profits of the joint venture are commensurate with ACDBE firms ownership interest 93 85. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y Joint Ventures ACDBE joint venture member must be certified in the type of work to be undertaken in the joint venture Joint venture entities cannot be certified as an ACDBE Joint venture agreement must be reviewed and approved by EOP prior to lease/contract execution, for ACDBE participation to count toward meeting the ACDBE goal 94 86. M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y Information www.mwaa.com Metropolitan Washington Airports Authority Office of Equal Opportunity Programs (MA-410) Suite 144 1 Aviation Circle Washington, DC 20001-6000 (703) 417-8625 95 87. Washingtons Airports = Great Opportunities Strong passenger traffic Great passenger demographics High sales per square foot High sales per enplanement Excellent locations for your business 88. Facebook /DullesFoodandShops /ReaganFoodandShops Twitter @IADFoodandShops @DCAFoodandShops Website DullesFoodandShops.com ReaganFoodandShops.com Follow us online: 89. Contact Us LEASING Michael DiCosola Executive Vice President, Leasing mdicosola@marketplacedev.com (617) 2437452 Susan Drury Leasing Manager sdrury@marketplacedev.com (703) 4171565 Hanna Koren Specialty Leasing Manager hkoren@marketplacedev.com (703) 4171565 GENERAL MANAGERS Kathy Viola General Manager, DCA kviola@marketplacedev.com (703) 4171565 Kierran (KC) Casey General Manager, IAD kcasey@marketplacedev.com (703) 5725080