The Buffalo and Fort Erie Public Bridge Authority is tendering a 15-year contract (with a 5-year option) for its 28,000sq ft retail area Peace Bridge Duty Free Shop in Canada, with a start up date for the new contract commencing on 1 November, 2016.

 

The existing award winning Peace Bridge Duty Free operation serves US bound traffic with a dedicated vehicle entrance directly off the Peace Bridge approach, which is the second busiest Canada-US crossing point, handling around 5.5m vehicles a year.

 

This store was also one of the very first land border stores to open in Ontario back in 1986 – founded by George Slipp – and it also includes dedicated parking for around 146 cars, 24 trucks and 10 buses.

 

For the privilege to operate at the location, all bidders must provide a rolling irrevocable and unconditional letter of credit worth $500,000 and be prepared to pay a first year ‘base’ rent set at (a minimum) of $2,500,000.

 

This is subject to increase each year based on the gross sales achieved by the operator in the previous year

 

 

For the second and each succeeding year the rental will then be set at the greater of (1) the base rent paid in the immediately preceding year of the lease; and (2) 75% of the aggregate of the base rent and the percentage rent payable by the tenant to the landlord for the immediately preceding year of the lease. (To access a copy of the Request for Proposals document, click here: http://www.peacebridge.com/rfp)

 

SUB- LEASE OPTIONS…

In addition, the current sub-leases for the McDonald’s and Tim Hortons restaurants and separate banking and currency exchange services also expire on October 31, 2016. The successful bidder for the duty free shop will therefore also have the right to sub-lease these spaces to the same operators again, or offer them to other companies offering similar services.

 

The evaluation criteria score valuess to select the next operator will consist of the following, according to the RFP document:

 

• Proponent’s background and historical performance in operating a duty free store or other similar retail operation: 10%;

 

• Proponent’s expertise and past success with marketing campaigns that successfully increased sales: 10%;

 

• Proponent’s management and key personnel qualifications and experience: 10%;

 

• Proponent’s experience in cross-border and tourism-driven operations: 10%;

 

• Proponent’s value proposition to increase sales and capture volume: 10%;

 

• Proponent’s distinguishing characteristics and value-added ideas: 10%;

 

• Financial and Lease Terms, including minimum base rent, percentage rent(s) and any proposed capital investments by the Proponent, together with any requested revisions to the Lease Terms by the Proponent (such as – but not limited to – term of Lease, and any investments or costs required of the Authority): 35%;

 

• Financial and Lease Terms proposed will be evaluated on the total requirement, considering the overall benefit of each Proposal to the Authority over the term of the proposed Lease. The Authority will use financial analysis, such as – but not limited to – Net Present Value calculation(s) and other assessment tools to determine the Proposal that provides the best overall benefit to the Authority; such Proposal will receive full points on this criterion. All other Proposals will receive a pro-rated
  

  The Peace Bridge Duty Free beer section.

  score on this criterion based on the difference between their proposed Financial and Lease Terms from the Proposal with the best overall benefit to the Authority. Financial results and general financial health as evidenced by information provided in the proposal: 5%.

 

The closing date for bid proposals is May 9 2016 and the authority says that the winner will be informed on July 1.

 

Companies wishing to obtain more information about the RFP should notify Kimberlee Kaiser, Executive Assistant, via email at [email protected]