Airport Business Diversity
Conference
Dallas/Fort Worth 2011
WHERE DO WE FIND THE “MOOLAH”
IN TODAY’S ENVIRONMENT?
WHERE DO WE FIND THE “MOOLAH” IN
TODAY’S ENVIRONMENT?
WELCOME!
Jeff Sailer, Vice President*
Development & Diversity
LS Travel Retail North America
(210) 241-9744
jsailer@lstrna.com
*MODERATOR
WHERE DO WE FIND THE “MOOLAH” IN
TODAY’S ENVIRONMENT?
 Today’s challenging business and financial environment further
complicates an already difficult concession financing process
 Traditional financing vehicles, primarily banks, do not understand
the concession financing model and therefore tend to turn away
from airport concession financing.
 Non-traditional concession financing vehicles, such as investors,
equity firms, etc., have significantly weakened due to the financial
circumstances posing a grave question as to how do you “find” the
money to finance your airport concession.
WHERE DO WE FIND THE “MOOLAH” IN
TODAY’S ENVIRONMENT?
Today’s panel will explore the “concession financing world” offering
insight and real life recommendations to finding the “money” in
today’s challenging financial environment.
Panel Speakers:
 Charles Gates will address the “airport” perspective – requirements,
needs, and what can a public-sector entity do to facilitate concession
financing.
 Ray Quintanilla, DFW airport concessionaire, will bring perspective
from the ACDBE small business owner side.
 Bob Lopez, PHX airport concessionaire, will bring perspective from the
large business side having dealt with financing multi-airport concession
locations, and recently pursued a large prime concessionaire
opportunity.
WHERE DO WE FIND THE “MOOLAH” IN
TODAY’S ENVIRONMENT?
Requirements:
 Responses to RFP
 Capital for Build out
 Capital for operations
Assistance:
 Airport Staff
 Min. Guarantee
 Structure of the lease
WHERE DO WE FIND THE “MOOLAH” IN
TODAY’S ENVIRONMENT?
What are Your Capital Needs?
 Plan Ahead
 Payment history
 State of the Industry-Impacts
 Rent Relief
 Finance Needs/Business Plan
 Know the Airport Staff
 Airport Staff
 Min. Guarantee
 Structure of the lease
WHERE DO WE FIND THE “MOOLAH” IN
TODAY’S ENVIRONMENT?
Contact Information
Charles W. Gates
DBA Gates Aviation Consulting Service
512-826-1864
gates4326@sbcglobal.net
WHERE DO WE FIND THE “MOOLAH” IN
TODAY’S ENVIRONMENT?
Small ACDBE Operator Perspective
 Personal funds
 Simplest Option
 Leverage business with current relationships with banks and or
partners
Bank Financing




Most difficult
Airport Businesses do not follow traditional Bank models.
Prepared to have sufficient collateral to secure financing
SBA program
WHERE DO WE FIND THE “MOOLAH” IN
TODAY’S ENVIRONMENT?
Venture Capital Firms
 Very Difficult
 Virtually same information and requirements as bank
 Financing will probably involve a combination of operating funds
and relinquishing a percentage of ownership
Joint Venture Financing
 Prime partner assisting in obtaining financing through any of
programs listed above
 Offering financing to ACDBE adhering to 49CFR Part 23 guidelines
set out by Department of Transportation
WHERE DO WE FIND THE “MOOLAH” IN
TODAY’S ENVIRONMENT?
Contact Information
Ray Quintanilla, President
Sierra News
4711 Maple Ave.
Dallas, Texas 75219
214-528-3840
rquinta433@aol.com
WHERE DO WE FIND THE “MOOLAH” IN
TODAY’S ENVIRONMENT?
AIRPORT FINANCING KEY ISSUES
 Poor lender collateral position
 Must demonstrate strong cash flow position from current
airport operations
 Need a long term lender relationship demonstrating
airport operations experience
 It’s ultimately is a “Trust and Cash Flow” loan
WHERE DO WE FIND THE “MOOLAH” IN
TODAY’S ENVIRONMENT?
CREDIT BASICS
 Accurate up to date and professional Year End Financial
Statements over a three year period. Be able to comment
on the Profit/Loss statements
 Three year history of Federal Tax Returns - are they
supported by your financial statements
 Identify and comment on any negative credit issues
experienced over the past 5-7 years
WHERE DO WE FIND THE “MOOLAH” IN
TODAY’S ENVIRONMENT?
TRADITIONAL FINANCING SOURCES
 Local depository banks
 National banks/lenders (B of A, JP Morgan Chase, Wells
Fargo etc.)
 SBA local lenders (search for local resources)
WHERE DO WE FIND THE “MOOLAH” IN
TODAY’S ENVIRONMENT?
NON TRADITIONAL FINANCING SOURCES
 Private money (friends, relatives)
 Cash
 Equity loan on residence
 Joint Venture partnership resources
WHERE DO WE FIND THE “MOOLAH” IN
TODAY’S ENVIRONMENT?
Contact Information
Robert V. Lopez
JMJ-LLC
5535 W. Glenn Dr., Glendale, AZ 85301
602-723-8228 (cell phone)
623-463-2885 x11 (office phone)
rvlopez1@aol.com
WHERE DO WE FIND THE “MOOLAH” IN
TODAY’S ENVIRONMENT?
QUESTIONS & ANSWERS