Title
Request to Issue Airport Advertising Revenue Contract Solicitation - District 8
Description
This report requests the Transportation, Infrastructure, and Planning Subcommittee to recommend the City Council authorize the Aviation Department to issue a revenue contract solicitation (RCS) for a qualified airport advertising company to develop and manage a comprehensive airport-wide advertising program at Phoenix Sky Harbor International Airport, Phoenix Deer Valley Airport, Phoenix Goodyear Airport, Rental Car Center, and other areas (collectively, Airports.) The Aviation Department is also requesting authorization to extend the term of the Terminal Advertising Concession Lease Agreement 135006 on a month-to-month basis, if necessary, until performance begins under the new advertising concession lease resulting from the RCS.
THIS ITEM IS FOR CONSENT ACTION.
Report
Summary
The Aviation Department currently contracts with Lamar Alliance Airport Advertising Company to operate the advertising concession program at the Airports under Concession Lease Agreement 135006, which will expire in May 2026.
The Aviation Department is seeking an airport advertising concessionaire to develop, operate, and manage a comprehensive airport-wide advertising program encompassing both indoor and outdoor spaces and sponsorship opportunities. The goals of the airport advertising program are to:
- Showcase the unique identity of Phoenix, its surrounding communities, and local cultural heritage.
- Promote a diverse mix of regional and national brands to the traveling public.
- Generate increased revenues for the Aviation Department through innovative advertising solutions.
In alignment with airport industry best practices, the selected advertising concessionaire is expected to provide state-of-the-art technology and equipment that create distinctive engagement opportunities with airport travelers and enhance the overall passenger experience. The envisioned program will reflect the evolving standards of public space advertising within the Airports' environments.
Procurement Information
The Aviation Department will issue an RCS to select a qualified airport advertising concessionaire to develop, operate, and manage the Airport Advertising Program. The selected concessionaire will be responsible for the installation, maintenance, and operation of all advertising equipment and associated infrastructure.
Respondents deemed responsive and responsible will be evaluated based on the following proposed evaluation criteria:
- Qualifications and Experience of the Respondent
- Advertising Display Program
- Business, Marketing, and Operations Plans
- Transition and Mobilization Plan
- Sponsorship Program Methodology
- Financial Return to the Aviation Department
The highest ranked respondent will be recommended for the Airport Advertising concession lease award.
The Aviation Department intends to issue the RCS in Spring 2026. The City's Transparency Policy will be in effect upon the release of the RCS and throughout the solicitation process.
Contract Term
The term of the new Airport Advertising concession lease will be seven years with one, three-year option to extend the term at the sole discretion of the Aviation Director.
Financial Impact
Rent will be based on the minimum annual guarantee (MAG) or a percentage of gross sales from the advertising concession program, whichever is greater. MAG and the percentage of gross sales will be finalized when the RCS is published.
Public Outreach
This RCS process will include all standard and required outreach efforts as well as targeted outreach efforts to attract interest.
Concurrence/Previous Council Action
The Phoenix Aviation Advisory Board, Business and Development Subcommittee approved this item on Oct. 3, 2025, by a vote of 3-0.
The Phoenix Aviation Advisory Board approved this item on Oct. 16, 2025, by a vote of 6-0.
Location
Phoenix Sky Harbor International Airport, 2485 E. Buckeye Road
Council District: 8
Department
Responsible Department
This item is submitted by Deputy City Manager Amber Williamson and the Aviation Department.