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NFTA, Del. North in long-term airport pact

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Travelers using Buffalo Niagara International Airport will see a dramatic new look in the main terminal including a major revamping of concession operations.

The Niagara Frontier Transportation Authority's board of commissioners, in negotiating a new concessions operations contract with Buffalo-based Delaware North Cos. Travel Hospitality Services Inc., have set into a place of series of renovations at the airport, adding several local and national brand food retailers. The new 15-year pact, which extends Delaware North's presence at the airport through 2027, was unanimously approved Tuesday afternoon.

The contract guarantees the NFTA at least $57 million in revenue payments from Delaware North during the next 20 years. The payment is based on a sales formula for branded and non-branded food and non-alcholic beverages. Delaware North will annually pay 11 percent of gross revenues on the sale of branded food and non-alcoholic items up to $7 million and 13 percent beyond $7 million. Non-branded food and alcohol items will see the NFTA receiving 13 percent of gross revenues up to $4 million and 14 percent beyond the $4 million mark.

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"It is a very tight agreement with a lot of protection for the NFTA," said Greg Stamm, NFTA chairman.

The pact also dictates at least some of the retail and concession operations must be open in time to greet the airport's early morning travelers and must stay open until the last airplane lands for the day, regardless if the flight is running on schedule or delayed. The first airplane leaves the airport at 5:30 a.m. and the last scheduled arrival is just after midnight.

Talks between the NFTA and Delaware North began last year shortly after the authority decided to expand its luggage-handling system at the airport and, simultaneously work with the federal Travel Safety Administration on adding extra security gates. Both opened the door for the NFTA and Delaware North to upgrade and revamp its concession and retail operations at the airport.

The current concession configuration has been in place since the airport opened in 1997 and was handling about 2.8 million passengers annually. A combination of low-cost air carriers and a heavy influx of Canadian travelers now has the airport handling more than 5 million passengers annually. Buffalo Niagara International Airport handled 5.3 million passengers last year and is on track to welcoming 5.6 million passengers this year.

"We couldn't sit still," said Lawrence Meckler, NFTA executive director. "To sit still would have put us in a position of not being able to handle all the traffic."

All told, the construction work at the airport will cost slightly more than $45 million. Delaware North is investing at least $7.6 million to upgrade the retail and concession operations.

Construction on the luggage handling operation, set just below the airport's eastern wing, is expected to be completed this fall. The luggage operation created additional second-floor space that opened the door for Delaware North to revamp its retail and concession operations.

At the same time, the airport will see the number of its security gates increase from seven to 10, with the expanded gate work to be completed by late fall.

The new security gates will force the NFTA to shift the barber shop and bathrooms from the edge of the airport's west wing to the edge of its east wing. The barber shop and bathrooms will remain outside the secured area.

That work is also prompting a series of upgrades to the airport's meet-and-greet area with a revamped concession area that will include a full-service bar.

Gone will be the Burger King and All-Stars Cafe that were located on the edge of the west wing. Burger King remains open through June and services both travelers and those waiting for passengers.

In their place, Delaware North is creating the "Blue Zone" in the airport's west, or USAirways, wing. The Blue Zone will featured a full-service bar, pre-packaged meals like salads and wraps and hot items such as fresh-carved sandwiches. It will be a similar operation to the Landmark Cafe in the airport's east wing. The Blue Zone is expected to open this summer.

The biggest change will be the creation of a food court just past the security gates.

Near the court will be a 1,800-square-foot Anchor Bar franchised operation with seating for 42 people at the bar and 34 at sit down tables.

"Getting the Anchor Bar was a real coup for us," said Nick Beillo, Delaware North Travel Hospitality Services chief operating officer.

The food court will be home to such restaurants as Freshens yogurt, Villa Fresh Italian Kitchen and Checker's, a nationally-franchised burger stand. Villa Fresh Italian Kitchen and Checkers will be making their local debut in the airport.

Delaware North is continuing to negotiate with other restaurant and retail tenants for the food court area.

The revamped food court was designed by the Amherst firm of BNHT Architects.

William Vaneck, NFTA director of aviation, said the new food court will add about 12,000-square-feet of additional retail and concession space to the airport. The terminal currently has 21,718-square-feet of retail and concession space.

"Post-security food and beverage operations is really what people expect at an airport," Vaneck said.

Further down the west wing, the Jake's outlet will be replaced by an Anderson's, featuring its famed beef on weck and custard.

"Our goal is to make it a better experience for everyone," Beillo said.


© 2008 American City Business Journals, Inc. All rights reserved.

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