Today the Chicago Transit Board approved lease arrangements for twenty-nine separate concession properties located at CTA rail stations. In addition to better serving the CTA customer, the revitalized concession area program will bring significant improvements to the physical layout of concession spaces and a substantial increase in lease revenues to the CTA.
CTA President Frank Kruesi said, "We want to create an inviting concession area that helps to anchor our CTA station within the communities we serve. By improving our concessionaires and the facilities that they work from is yet another facet of our commitment to provide quality service to our customers. It is important to have a clean and friendly area in which to purchase a newspaper on the way to work or a carton of milk on the way home."
As part of the CTA's Concession Redevelopment Program, uniform lease terms were established that include longer lease periods as well as provisions for controlled merchandising and guidelines for improved presentation and appearance. Previously, the terms of the concession leases were inconsistent and were primarily renewed month-to-month.
In 1999, the CTA tested a pilot program to attract new concessionaires and to improve the appearance of concession spaces. Nine vendors participated at various CTA rail stations: Red Line at 95th and Blue Line at Adams/Jackson, Rosemont, Forest Park and Logan Square. At Rosemont, for instance, sandwiches, soups and salads are now sold in addition to more traditional concession items in a space that was renovated to include refrigerated display cases, new fixtures, and ceramic tile flooring.
CTA Chairman Valerie B. Jarrett said, "During last year's pilot program, the customer and neighborhood response to the improved concessions was quite positive. With today's leases, the CTA is looking to further build on this program and continue to integrate our stations into the communities we serve. The new long-term lease agreements bring a greater level of stability to the CTA's arrangements and encourages concessionaires to make capital improvements."
Proposed capital improvements at the various stations have an estimated value of $1,258,707. Coupled with the $2,727,618 in lease revenue that will be generated over the seven-year life of the leases, total proceeds to the CTA are projected at nearly four million dollars. In rent alone, the new leases will generate $356,230 more rent per year than the previous month-to-month concession leases.
The lease agreements are between the CTA and:
LINE?"'sTATION?"? CONCESSIONAIREGreen?"Ashland?" Tobmar InternationalGreen Halsted Ji Kyu YooOrange Midway NSPS Inc.Brown Irving Park Pirani EnterprisesBrown Damen Tobmar InternationalBrown Western Espresso DelightBlue Monroe Tobmar InternationalBlue Monroe 300 ConcessionsBlue Washington Papas News, Inc.Blue Damen Tobmar InternationalBlue California Tobmar InternationalBlue Belmont Ram Candy StoreBlue Belmont Ram Candy StoreBlue Jeff. Park Papas News, Inc.Blue Harlem Expresso DelightBlue Cumberland Tobmar InternationalBlue 54th /Cermak Tobmar InternationalRed 69th Tobmar InternationalRed 79th Tobmar InternationalRed Jackson Tobmar InternationalRed Monroe Tobmar InternationalRed Monroe Tobmar InternationalRed Washington Tobmar InternationalRed Fullerton Anna Donuts, Inc.Red Addison Mohammed MajooRed Sheridan Tobmar InternationalRed Argyle Tobmar InternationalRed Loyola Anna Donuts, Inc.Loop Wash./Wells Tobmar International
Tobmar International does business as ?Gateway News;? Anna Donuts, Inc. and NSPS Inc. are franchisees of ?Dunkin? Donuts."###