Doing Business at CVG: Business Opportunities at the Cincinnati/Northern KY Int l Airport. March 25, 2015

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1 Doing Business at CVG: Business Opportunities at the Cincinnati/Northern KY Int l Airport March 25, 2015

2 Welcome Candace McGraw Chief Executive Officer

3 Welcome and Introductions CVG Website & Vendor Registration Procurement opportunities Concessions Networking Break Air Service Update Construction & the CVG Master Plan Property Development DBE Certification & its benefits Agenda

4 Joe Huber Director Contract & Procurement DBE/ACDBE Liaison Officer

5 cvgairport.com Business Opportunities Procurement & Concessions Real Estate & Leasing Opportunities

6 Procurement Diane Russ Manager Procurement

7 How to do business with CVG Competitive bid process Threshold of $20K Advertise solicitation in the Enquirer Uploaded to electronic bidding system

8 How to do business with CVG Professional services exception No public bid requirement in KY May be procured directly with known providers May be procured through the public competitive process

9 2015 Schedule Polymer Industrial Cleaning Services Garage Doors Overhead Doors Conc A Conveyance Systems Consultant (1) F450 Dump Vehicle Stormwater Monitoring System Replacement Oil Cooler (2) for Elevator Room Conditioner Seating Terminal 3 Ticketing Bag Claim Furniture Seating Air Stairs Truck Internet Service PRCS Maintenance Haz Mat Responder Sprinkler & Fire Pump Inspections Fire Training Fuel Roll Up Doors Conc A & Conc B Glycol & Stormwater Air Relief Valve Replacement 800 MHz and Non 800 MHz Radio System Maintenance Procurement

10 2015 Schedule (cont.) ABM (Airport Business Manager) Support PRCS Software (Build 19) Amano McGann Pay by App and Pay on Foot Natural Gas Commodity & Related Services Replacement Actuators (Rotork) for Deice Replacement Parts for Stormwater Valve Radio System Upgrade/Replacement Program Phase 2 Crack Sealant Polyethylene Bags Deicing Fluid Trucking Service Snow Hauling Rental of 4 Wheel Drive Rubber Tire Loaders Runway & Taxiway Deicing Compound/Anti Icing Material Cutting Edges Snowbroom Refill Cores Urea Ammonia Nitrate Phosphoric Acid Paper Roll Towels & Toilet Tissue Air Filtration Filter Material Procurement

11 2016 Schedule Medical Billing Service Aqueous Film Forming Foam (AFFF) Asphalt Maintenance Water Blasting Services Runway Marking Paint Glass Beads FAA Type IV B Lawn Maintenance & Bush Hog Services Fire Training Fuel Diesel Fuel (On Road & Off Road), Gasoline and Bio Diesel Diesel Supreme Polymers Laundry / Dry Cleaning Services Bulk Deicing Rock Salt Deicing Fluid Trucking Service Snow Hauling Rental of 4 Wheel Drive Rubber Tire Loaders Runway & Taxiway Deicing Compound/Anti Icing Material Snowbroom Refill Cores Urea Ammonia Nitrate Phosphoric Acid Propane (Bulk & Cylinder) Procurement

12 Concessions Dave Kellerman Sr. Manager Concessions

13 Concessions Request for Proposal Process Long Term Lease Opportunities RFP timeline Start to finish: Initial Concept research Summary of opportunity forwarded to interested concessions list Advertised in the Enquirer & RFP posted online Pre proposal meeting & site visit Proposals submitted Proposals evaluated Recommendation to Committee and Board

14 Concessions Short Term License Agreements Opportunity to test concepts RFP process is not required Usually used for short term situations If concept is successful then an RFP would be released to obtain a long term agreement

15 Concessions Upcoming Opportunities Concession Request for Proposals Ice Cream/Candy/Bakery (Second Quarter 2015) News and Gift/Specialty Retail (Third Quarter 2015) Recently awarded Fast Casual Restaurant (Smashburger) Common Use Lounge ( The Club at CVG ) Candy Concept (Natalie s Candy Jar)

16 Concessions Construction/Supplier Opportunities Concessionaire responsible for all Capital investments, hiring construction contractors Selected by Concessionaires Corporate office Interested Construction/Supplier List Follow legal notices, CVG website for upcoming opportunities

17 Concessions Additional Support Opportunities Floor Cleaning Window Cleaning Electrical/Plumbing Carpentry

18 Networking Break

19 Air Service Adam Kressler Sr. Manager Air Service Development

20 CVG is the Tri State Region s Leading Airport CDG Non Stop Markets Peak Day Departures Average Daily Departures Marketing Carriers CVG IND CMH SDF DAY LEX Legend CVG Legacy CVG LCC DAY/IND More Non Stop Markets, Peak Day Departures and Carriers than any other Tri State Region Airport Peak Day and Average Daily Departure counts are based on the flight schedules for May 2015 as of January 5, The number of Non Stop Markets and Marketing Carriers are based on flight schedules loaded for the period between June 2014 and May 2015 as of January 5, Source: Diio Mi, January 2015 and Vacation Express 2015 flight schedule card.

21 Global Super Hub for DHL DHL employs nearly 2,400 at CVG Processes 2.6 million cargo pieces a month and sorts 92% of all US delivery shipments as well as all Canadian, Mexican, and Latin American shipments at CVG Connects over 100 service centers and international gateways in DHL s International network in the U.S. 21

22 Landed Weight Trend Monthly Landed Weight Totals March 2013 through February % 46% Diversity of operations stabilizes airport financials and continues to support low airport cost of operations Source: CVG Airport Statistics Landing Reports

23 Total Enplanement Trend YOY Percent Change FEB 2013 JAN 2015 Year over Year Enplaned Passenger Improvement in last fourteen reported months

24 Local Origin & Destination Trend YOY Percent Change FEB 2013 JAN 2015 Year over Year O&D Improvement in twenty two of of last twenty four reported months

25 Total Cargo Trend YOY Percent Change MAR 2013 February 2015 Year over Year Cargo Improvement in all but two months since January 2010

26 Monthly Seats Trend YOY Percent Change JAN 2005 Jul 2015 August 2005 October consecutive months of Year over Year negative change 26

27 New Service Announcements Frontier Airlines February 2014 Trenton (discontinued) September 2014 Washington Dulles October 2014 Dallas Ft. Worth, Ft. Lauderdale, Orlando, Las Vegas & Phoenix April 2015 Ft. Myers & Atlanta Allegiant Air February 2014 Ft. Myers/Punta Gorda & Orlando Sanford May 2014 Tampa/St. Pete & Myrtle Beach October 2014 Ft. Lauderdale November 2014 Phoenix Mesa December 2014 Las Vegas February 2015 Jacksonville & New Orleans May 2015 Savannah/Hilton Head (seasonal) June 2015 Austin Vacation Express August 2014 Freeport Ultimate Air Shuttle July 2014 Chicago Midway Branson Air Express May 2015 Branson OVER 30 NEW MARKET OR EXPANSION ANNOUNCEMENTS

28 Frontier Expanding Service at CVG Initiated CVG service in May 2013 with 6 weekly flights to Denver Effective April 30, 2015, Frontier will be operating 59 weekly flights to 10 destinations Offers daily service to Atlanta, Denver, Dallas, Ft. Lauderdale, Las Vegas, Orlando and Ft. Myers Current schedules indicate Frontier will account for 10% of CVG total departing seat capacity in June 2015, up from 3% in June 2014 Average load factor of 88% for the 12 months ending November 2014 Frontier Weekly Departures January 2014 June 2015 HIGH LOAD FACTORS DEMONSTRATE MARKET STRENGTH

29 Allegiant Expanding Service at CVG Initiated service in February 2014 with four weekly flights to two destinations Announced six new markets in 2014 and two new markets to date this year In the summer of 2015, Allegiant will operate 38 weekly flights to 10 destinations Current schedules indicate Allegiant will account for 8% of CVG total departing seat capacity in June 2015, up from 2% in June 2014 Average load factor of 90% for the 12 months ending November 2014 Allegiant Weekly Departures January 2014 June 2015 WEEKLY FLIGHT ACTIVITY INCREASING FROM 4 TO 38 IN LESS THAN 18 MONTHS

30 Development Construction Opportunities Barb Schempf VP Planning and Development

31 Planning for our Future: 2035 Master Plan Overall Development Plan Near Term Proposed Construction Projects Overall Development Plan KCAB relocation projects T1/T2 demolition projects Enabling projects Apron rehab projects Wendell Ford Blvd. extension project Non-airfield road rehab projects Long-term parking lot rehab project East service road rehab project Airport structures: rehab projects Fiber projects Terminal Area Development Plan Passenger facility refurbishment projects Terminal roadway, curbside, and parking improvement projects

32 Terminal Area Development Plan Future Proposed Construction Projects Beyond

33 Property Development Susan Sallet Sr. Manager Property & Leasing

34 Land Development Third Party Development Cincinnati/Northern Kentucky International Airport Commercial Business Development March 25,

35 Land Development Sites Non Aeronautical 600 Acres 35

36 Site 3A Access Agreement & Letter of Intent Due Diligence Period 36

37 Site 3A Proposal Development Industrial/Warehouse Building A 416,000 SF Building B 390,000 SF 47 Acres 37

38 Site 6A Access Agreement Ted Bushelman Blvd. 38

39 6A Industrial/Warehouse Bldg. 522,830 SF Ted Bushelman Blvd. 30 Acres 39

40 7 acres 6B W Access Agreement Build to Suit Commercial Retail Facility 50,000 SF 40

41 6B E Access Agreement Ted Bushelman Blvd. Build to Suit Industrial/Warehouse Building 175,000 to 200,000 SF 20 Acres 41

42 Site 8 Terminal Dr. /Donaldson Hwy. 70 Acres 42

43 320 Acres Industrial/Warehouse Site 7 North Bend Rd. 1.7 to 2.7 Million SF Access Agreement Due Diligence Period 43

44 Aeronautical Sites 5 Sites 200 Acres Development: Hangar MRO FBO Air Cargo 44

45 Thank You! 45

46 DBE/ACDBE Certification About Us Diversity Business Opportunities DBE Program

47 DBE/ACDBE Certification Basic Requirements for Certification For profit small business At least 51% owned by one or more individuals who are both socially and economically disadvantaged Management and daily business operations controlled by socially and economically disadvantaged owners Meet personal net worth and / or gross receipt limitations rights and small businessdevelopment/pages/default.aspx

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