"Short memory is basis for DIA concession renewals"

Sunday, June 15, 2003

Column
Short memory is basis for DIA renewals
By Jim Spencer
The Denver (CO) Post


Gather 'round, children of all ages. There's a tale to spin. It's about
those poor old concessionaires at Denver International Airport and
Wellington Webb, the mayor who must take care of them.

You know those concessionaires. They're the ones who sell you food and
sundries for twice what you pay a few miles down the road. They're the
people who introduced you to the concept of captive audiences with $4 hot
dogs and $30 neckties.

The mayor would like to extend the operating contracts of these poor souls,
because, you know, they've had it so bad. In fact, many of their operations
carry the title "disadvantaged businesses."

At least that's what they were called way back in the mid-1990s, when DIA
opened and people of color and women were justifiably given some preference
in the bidding process to make sure they got a piece of the pie.

Today, the mayor hopes to extend these minority contracts, as well as
others, without asking for new companies to bid on them. The mayor thinks
the airport's got a model for local control and diversity it needs to hold
on to. He's also said the concessionaires need to be rewarded for suffering
through the delayed opening of the airport and the aftermath of the Sept.
11, 2001, terrorist attacks.

Now, there are those who might say that victory distinguishes history from
fiction. What's now touted as a model concessionaires' program was born amid
charges of sweetheart deals made with family members and campaign
contributors.

Who could forget that the mayor's brother, Joe, was involved with the first
company picked to run the DIA Dairy Queen and the mayor had to scrap that
contract when the news leaked?

Who could forget that a guy whose business gave $25,000 to the mayor's first
campaign formed a company that was picked to run 10 of the airport's 16
newsstands and the mayor had to scrap that one, too?

Who could forget the complaints of some Hispanic businesspeople that
African-Americans got a disproportionate share of the minority contracts at
DIA and the mayor just happens to be black?

Who could forget the ethics panel the mayor had to set up because of all the
irregularities?

Who could forget the FBI investigation that ensued, but found no crimes?

Who could forget all the controversy that surrounded this "model program?"

Who could forget as the renewal process gathers steam for a vote before 10
new council members and a new mayor take office in July?

Who could forget?

Everybody, that's who.

And now that same everybody will need to forget some more stuff to keep the
contracts in the hands of those concessionaires who already have them.

First, forget that the city has to make up a budget gap estimated at $50
million next year.

Then, forget that rebidding concessionaire contracts stands to make DIA -
and, indirectly, the taxpayers - millions more per year in revenue - even
with minority incentives.

Forget that airport records show three concession contracts considered for
new bids drew proposals that would increase airport compensation by 11
percent in one case, 182 percent in another and 1,000 percent in a third.

Forget that the Denver Airlines Airport Affairs Committee sent a letter to
the city's aviation manager on behalf of 21 airlines expressing serious
concern about the "potential negative financial impact" of extending the
contracts.

Forget, especially, that the term "disadvantaged businesses" becomes an
oxymoron when applied to concessionaires at DIA.

The City Council resolution to extend the concession contracts reasons that
the bad economy, the war in Iraq, the bankruptcy of United Airlines and the
post-9/11 passenger slump hurt the concessionaires so much that they deserve
to keep their contracts three to six more years without having to rebid.

Would that we were all so deprived, dear audience. In its letter to the
aviation manager, the airport affairs committee pointed out the following:

"Concession revenues have increased each and every year at DIA, even with
these impacts and recent reductions in passenger levels."

Added security checks after 9/11 seem to have left people with more time on
their hands to shop and eat while waiting to board planes.

"During the first quarter of 2003," the airport committee letter states,
"the DIA concessionaires recorded record gross revenues of $34.6 million."

Figures released by the airport show that the shoeshine operation on
Concourse B grossed $410,067 in 2002. The airport Burger King sold almost
$2.4 million worth of fast food the same year.

But, like I said, forget all that.

Just don't forget to throw me in the briar patch.

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