Botanical Designs and Services approached the Airport with a request to test the market viability of a fresh flower concession at Billings Logan International Airport. The Airport has a number of concessions onsite in the Terminal Building, but has never had a fresh flower concession, nor are fresh cut flowers available at any of the existing concessions. The Airport has negotiated with Botanical Designs and Services to operate a small fresh flower stand on the main floor of the Terminal Building. The initial term of the Agreement is for six months with an option to renew for one additional six-month period. The initial term commences November 1, 2009, and ends on April 30, 2010. It is anticipated that if this concession market test proves successful, the next contract will undergo a competitive bid process.

The alternatives for Council to consider are as follows:

• Approve the Concession Agreement with Botanical Designs and Services to allow them to determine if this concept can be a viable concession for the Airport; or
• Have staff formally advertise a request for proposals for the Airport Flower Stand Concession and not be concerned with whether a market exists for this service.
   

The Airport's Flower Stand Concession will generate $1,275.72 in rental income for the City for the initial six-month term. Should Botanical Designs and Services wish to exercise the renewal option, rental rates will be adjusted effective July 1, 2010, to correspond to the same Terminal Building rental rates charged to the airlines at that time.

Staff recommends that Council approve the Flower Stand Concession Agreement with Botanical Designs and Services.