April 12, 2000

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."

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