{"id":11531,"date":"2016-08-23T03:33:06","date_gmt":"2016-08-23T08:33:06","guid":{"rendered":"http:\/\/myboysay.com\/blog\/?p=11531"},"modified":"2016-08-23T22:34:33","modified_gmt":"2016-08-24T03:34:33","slug":"there-is-magic-in-the-air-as-denver-council-advances-dia-terminal-project-bid-after-hearing-from-corporate-investment-business-man-mr-earvin-magic-johnson","status":"publish","type":"post","link":"https:\/\/myboysay.com\/blog\/?p=11531","title":{"rendered":"THERE IS “MAGIC” IN THE AIR, AS Denver Council Advances DIA Terminal Project Bid After Hearing From “CORPORATE INVESTMENT” Business Man, Mr. Earvin “Magic” Johnson Jr."},"content":{"rendered":"
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Bid team seeking long-term partnership, which includes ex-basketball star EARVIN “MAGIC” JOHNSON JR. as investor, speaks to committee.<\/strong><\/h2>\n

A committee\u2019s vote Wednesday to advance\u00a0a proposal that would green-light negotiations with the preferred bid team for Denver International Airport\u2019s terminal renovation\u00a0came after members asked questions about the arrangement.<\/strong><\/p>\n

And after they were charmed, at least a little bit, by\u00a0Earvin \u201cMagic\u201d Johnson Jr.<\/strong><\/p>\n

\u201cI\u2019ve been coming to Denver for over 30 years,\u201d Johnson said at the start of his remarks. \u201cYou know, in those little hot pants that we used to wear and the purple uniform for the Lakers. But now, with a suit and tie, and I\u2019m doing business in this great city.\u201d<\/strong><\/p>\n

The retired 6-foot-9 NBA\u00a0star, who posed for photos with some City Council members after the meeting, was there because his\u00a0Magic Johnson Enterprises is\u00a0an equity partner<\/a> in the project consortium led\u00a0by Madrid, Spain-based Ferrovial Airports.<\/strong><\/p>\n

The team also is led by\u00a0Centennial-based\u00a0Saunders Construction, which was among the managers of the airport\u2019s hotel and transit center project<\/a>. The bid team was\u00a0selected by DIA officials over two others in June<\/a>.<\/strong><\/p>\n

It\u2019s\u00a0seeking a long-term\u00a0public-private partnership \u2014 potentially worth hundreds of millions of dollars \u2014 to renovate much of the\u00a01.5 million-square-foot terminal. It would then oversee commercial operations in that\u00a0part of the airport.\u00a0Several\u00a0council members cited 24 years as the potential term.<\/strong><\/p>\n

The arrangement would include the sharing of future revenues with the\u00a0airport, from concessions and other sources. So far, DIA hasn\u2019t released the\u00a0conceptual financial details of\u00a0Ferrovial\u2019s bid or any of the three teams\u2019 final proposals.<\/strong><\/p>\n

But a losing bidder, Westfield Airports, revealed in a recent filing<\/a> that its team\u00a0had proposed a $385 million project.<\/strong><\/p>\n

For now, DIA is asking the council to approve a \u201cpre-development\u201d agreement that sets in motion six months of formal negotiations for a partnership agreement, which the council would consider next spring. That initial contract is worth $9 million, but only if the airport decides not to move forward with Ferrovial.<\/strong><\/p>\n

The council also is reviewing a $600,000 contract with Los Angeles-based law firm\u00a0Nossaman LLP to serve as DIA\u2019s special counsel in negotiations.<\/strong><\/p>\n

The Business, Arts, Workforce and Aeronautical Services Committee advanced both contracts unanimously, except\u00a0for the abstention of its chair, Stacie Gilmore. She recused herself\u00a0from participating in discussions and voting because her brother-in-law\u2019s company, Gilmore Construction, is on\u00a0Ferrovial\u2019s bid.<\/strong><\/p>\n

The full council could approve\u00a0the contracts\u00a0later this month.<\/strong><\/p>\n

In the\u00a0presentation Wednesday, DIA CEO Kim Day\u00a0said the major components of the project include moving the\u00a0main security checkpoints from the open areas on the terminal\u2019s main floor to the north\u00a0end of Level 6, where some ticket counters are now, to effectively modernize screening for the post-9\/11 era.<\/strong><\/p>\n

That would free up much of the lower level for an entry plaza from the new hotel and new Colorado-centric attractions. Among potential\u00a0options:\u00a0ziplines or a climbing wall.<\/strong><\/p>\n

The renovation, of course, also would create more space for shops, restaurants and other income-generating\u00a0concessions. And it would mean\u00a0changes to the baggage system, including some geared toward increasing capacity.<\/strong><\/p>\n

\u201cWe have a transformational project to undertake here,\u201d said Chris Butler, whom Ferrovial has tapped as the executive director to oversee the project. Later, he referred to the iconic, striking tented roof structure of the terminal and said\u00a0the goal was\u00a0\u201cto make sure that the interior of that building is reflective of the quality of the exterior.\u201d<\/strong><\/p>\n

\u201cWe\u2019re absolutely determined to do that,\u201d Butler\u00a0said.<\/strong><\/p>\n

The partnership would be the first at a U.S. airport for Ferrovial. It operates four airports in the United Kingdom, among other ventures.<\/strong><\/p>\n

Ferrovial\u2019s\u00a0company\u00a0history has come under scrutiny from Unite Here, a union that is concerned about job retention for the DIA concession workers it represents. The union has pointed a bribery scandal in Spain<\/a>, the involvement of a subsidiary in U.S. toll road projects whose\u00a0operators filed for\u00a0bankruptcy and problems on its projects.<\/strong><\/p>\n

The security of concession workers\u2019 jobs, the long duration\u00a0of the prospective partnership deal and the use of privatization for the project all came up in committee members\u2019 questions Wednesday.<\/strong><\/p>\n

Several, including Kendra Black and Chris Herndon, said the public-private partnership model made\u00a0sense for the terminal project. But Jolon Clark said he wasn\u2019t sold on it and would scrutinize\u00a0the arrangement more if\u00a0a final agreement gets\u00a0sent\u00a0to the council next year.<\/strong><\/p>\n

Still others probed\u00a0the team about the expected extent of meaningful contract participation by minority- and women-owned firms.<\/strong><\/p>\n

During his introduction,\u00a0Johnson preemptively said he would play a role in ensuring the team meets such goals.<\/strong><\/p>\n

\u201cI\u2019m going to be a special adviser to the project,\u201d Johnson said. \u201cAnd what we want to do is really work with a lot of the minority firms. We want to make sure they participate here locally in this project, as well as women-owned businesses. We want to not only make sure that they have a piece of this project but also want to make sure that we mentor some of these great organizations as well and help them grow.\u201d<\/strong><\/p>\n

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Johnson said he has been\u00a0involved in opening five Starbucks franchises in the Denver area. He\u2019s also part of a concessions partnership at Los Angeles International Airport, among other ventures.<\/strong><\/p>\n<\/div>\n<\/div>\n